UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09729
iShares Trust
(Exact name of registrant as specified in charter)
c/o BlackRock Fund Advisors
400 Howard Street, San Francisco, CA 94105
(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: March 31, 2024
Date of reporting period: September 30, 2023
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith.
SEPTEMBER 30, 2023 |
| 2023 Semi-Annual Report (Unaudited)
|
iShares Trust
· iShares S&P 100 ETF | OEF | NYSE Arca
· iShares S&P 500 Growth ETF | IVW | NYSE Arca
· iShares S&P 500 Value ETF | IVE | NYSE Arca
· iShares S&P Small-Cap 600 Value ETF | IJS | NYSE Arca
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023
| ||||
6-Month
|
12-Month
| |||
U.S. large cap equities
| 5.18% | 21.62% | ||
U.S. small cap equities
| (0.19) | 8.93 | ||
International equities
| (1.28) | 25.65 | ||
Emerging market equities (MSCI Emerging Markets Index)
| (2.05) | 11.70 | ||
3-month Treasury bills
| 2.50 | 4.47 | ||
U.S. Treasury securities
| (6.98) | (2.90) | ||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)
| (4.05) | 0.64 | ||
Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)
| (4.05) | 2.66 | ||
U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)
| 2.22 | 10.28 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
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Fund Summary as of September 30, 2023 | iShares® S&P 100 ETF |
Investment Objective
The iShares S&P100 ETF (the “Fund”) seeks to track the investment results of an index composed of 100 large-capitalization U.S. equities, as represented by the S&P 100® (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 7.95 | % | 25.41 | % | 10.89 | % | 12.38 | % | 25.41 | % | 67.67 | % | 221.26 | % | ||||||||||||||
Fund Market | 7.99 | 25.26 | 10.90 | 12.38 | 25.26 | 67.72 | 221.31 | |||||||||||||||||||||
Index | 8.05 | 25.66 | 11.12 | 12.60 | 25.66 | 69.39 | 227.61 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio | | ||||||||||
$ 1,000.00 | $ 1,079.50 | $ 1.04 | $ 1,000.00 | $ 1,024.00 | $ 1.01 | 0.20 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
| ||||
Sector | Percent of Total Investments(a) | |||
| ||||
Information Technology | 32.9% | |||
Health Care | 12.6 | |||
Communication Services | 12.2 | |||
Financials | 12.0 | |||
Consumer Discretionary | 11.9 | |||
Consumer Staples | 7.1 | |||
Industrials | 5.1 | |||
Energy | 3.7 | |||
Utilities | 1.2 | |||
Other (each representing less than 1%) | 1.3 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | Percent of Total Investments(a) | |||
| ||||
Apple Inc. | 10.3% | |||
Microsoft Corp. | 9.6 | |||
Amazon.com, Inc. | 4.7 | |||
NVIDIA Corp. | 4.4 | |||
Alphabet, Inc., Class A | 3.2 | |||
Tesla, Inc. | 2.8 | |||
Meta Platforms, Inc., Class A | 2.7 | |||
Alphabet, Inc., Class C, NVS | 2.7 | |||
Berkshire Hathaway, Inc., Class B | 2.6 | |||
Exxon Mobil Corp. | 1.9 |
4 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT T O S H A R EHOLDERS |
Fund Summary as of September 30, 2023 | iShares® S&P 500 Growth ETF |
Investment Objective
The iShares S&P 500 Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the S&P 500 Growth Index™ (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 7.63 | % | 19.61 | % | 10.25 | % | 13.26 | % | 19.61 | % | 62.90 | % | 247.33 | % | ||||||||||||||
Fund Market | 7.68 | 19.54 | 10.25 | 13.25 | 19.54 | 62.87 | 247.15 | |||||||||||||||||||||
Index | 7.73 | 19.82 | 10.44 | 13.46 | 19.82 | 64.30 | 253.61 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||
$ 1,000.00 | $ 1,076.30 | $ 0.93 | $ 1,000.00 | $ 1,024.10 | $ 0.91 | 0.18 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
| ||||
Sector | Percent of Total Investments(a) | |||
| ||||
Information Technology | 35.2% | |||
Health Care | 17.3 | |||
Consumer Discretionary | 10.4 | |||
Communication Services | 7.9 | |||
Financials | 7.4 | |||
Energy | 7.2 | |||
Consumer Staples | 6.3 | |||
Industrials | 5.1 | |||
Materials | 1.9 | |||
Other (each representing less than 1%) | 1.3 | |||
|
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | Percent of Total Investments(a) | |||
| ||||
Apple Inc. | 12.8% | |||
Microsoft Corp. | 6.9 | |||
NVIDIA Corp. | 5.5 | |||
Alphabet, Inc., Class A | 3.9 | |||
Tesla, Inc. | 3.5 | |||
Alphabet, Inc., Class C, NVS | 3.4 | |||
Amazon.com, Inc. | 2.7 | |||
Exxon Mobil Corp. | 2.4 | |||
UnitedHealth Group, Inc. | 2.4 | |||
Eli Lilly & Co. | 2.2 | |||
|
FUND SUMMARY | 5 |
Fund Summary as of September 30, 2023 | iShares® S&P 500 Value ETF |
Investment Objective
The iShares S&P 500 Value ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the S&P 500 Value Index™ (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 2.19 | % | 21.99 | % | 8.23 | % | 9.46 | % | 21.99 | % | 48.52 | % | 146.85 | % | ||||||||||||||
Fund Market | 2.28 | 22.04 | 8.25 | 9.46 | 22.04 | 48.62 | 146.94 | |||||||||||||||||||||
Index | 2.27 | 22.19 | 8.41 | 9.64 | 22.19 | 49.77 | 150.96 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value | | | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 1,021.90 | $ 0.91 | $ 1,000.00 | $ 1,024.10 | $ 0.91 | 0.18 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
| ||||
Sector | Percent of Total Investments(a) | |||
| ||||
Financials | 19.4% | |||
Information Technology | 18.0 | |||
Industrials | 12.2 | |||
Consumer Discretionary | 11.1 | |||
Communication Services | 10.1 | |||
Health Care | 8.6 | |||
Consumer Staples | 6.8 | |||
Utilities | 4.8 | |||
Real Estate | 4.2 | |||
Materials | 3.1 | |||
Energy | 1.7 | |||
|
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | Percent of Total Investments(a) | |||
| ||||
Microsoft Corp. | 6.1% | |||
Meta Platforms, Inc., Class A | 4.1 | |||
Berkshire Hathaway, Inc., Class B | 3.9 | |||
Amazon.com, Inc. | 3.8 | |||
JPMorgan Chase & Co. | 2.6 | |||
Walmart, Inc. | 1.4 | |||
Cisco Systems, Inc. | 1.3 | |||
Salesforce, Inc. | 1.2 | |||
Bank of America Corp. | 1.2 | |||
Comcast Corp., Class A | 1.1 | |||
|
6 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT T O S H A R EHOLDERS |
Fund Summary as of September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF |
Investment Objective
The iShares S&P Small-Cap 600 Value ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the S&P SmallCap 600 Value Index™ (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | (3.82 | )% | 10.01 | % | 2.99 | % | 7.37 | % | 10.01 | % | 15.89 | % | 103.67 | % | ||||||||||||||
Fund Market | (3.71 | ) | 10.01 | 2.99 | 7.37 | 10.01 | 15.89 | 103.66 | ||||||||||||||||||||
Index | (3.76 | ) | 10.26 | 3.23 | 7.58 | 10.26 | 17.22 | 107.61 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||
$ 1,000.00 | $ 961.80 | $ 0.88 | $ 1,000.00 | $ 1,024.10 | $ 0.91 | 0.18 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
| ||||
Sector | Percent of Total Investments(a) | |||
| ||||
Consumer Discretionary | 19.6% | |||
Financials | 19.2 | |||
Industrials | 16.2 | |||
Real Estate | 11.8 | |||
Information Technology | 7.6 | |||
Health Care | 7.4 | |||
Energy | 4.7 | |||
Materials | 4.5 | |||
Communication Services | 3.8 | |||
Consumer Staples | 3.7 | |||
Utilities | 1.5 | |||
|
TEN LARGEST HOLDINGS
| ||||
Security | Percent of Total Investments(a) | |||
| ||||
Meritage Homes Corp. | 0.9% | |||
Insight Enterprises, Inc. | 0.9 | |||
Group 1 Automotive, Inc. | 0.8 | |||
Blackstone Mortgage Trust, Inc., Class A | 0.8 | |||
Lincoln National Corp. | 0.7 | |||
Newell Brands, Inc. | 0.7 | |||
Essential Properties Realty Trust, Inc. | 0.7 | |||
John Bean Technologies Corp. | 0.7 | |||
Advance Auto Parts, Inc. | 0.7 | |||
Carpenter Technology Corp. | 0.7 | |||
|
(a) | Excludes money market funds. |
FUND SUMMARY | 7 |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
8 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® S&P 100 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.5% | ||||||||
Boeing Co. (The)(a) | 195,563 | $ | 37,485,516 | |||||
General Dynamics Corp. | 78,028 | 17,241,847 | ||||||
Lockheed Martin Corp. | 77,303 | 31,613,835 | ||||||
RTX Corp. | 502,010 | 36,129,659 | ||||||
|
| |||||||
122,470,857 | ||||||||
Air Freight & Logistics — 0.7% | ||||||||
FedEx Corp. | 79,807 | 21,142,471 | ||||||
United Parcel Service, Inc., Class B | 249,460 | 38,883,330 | ||||||
|
| |||||||
60,025,801 | ||||||||
Automobiles — 3.2% | ||||||||
Ford Motor Co. | 1,358,412 | 16,871,477 | ||||||
General Motors Co. | 473,492 | 15,611,031 | ||||||
Tesla, Inc.(a) | 952,402 | 238,310,029 | ||||||
|
| |||||||
270,792,537 | ||||||||
Banks — 3.7% | ||||||||
Bank of America Corp. | 2,384,422 | 65,285,475 | ||||||
Citigroup, Inc. | 664,176 | 27,317,559 | ||||||
JPMorgan Chase & Co. | 1,002,312 | 145,355,286 | ||||||
U.S. Bancorp | 536,205 | 17,726,937 | ||||||
Wells Fargo & Co. | 1,261,920 | 51,562,051 | ||||||
|
| |||||||
307,247,308 | ||||||||
Beverages — 1.9% | ||||||||
Coca-Cola Co. (The) | 1,342,325 | 75,143,353 | ||||||
PepsiCo, Inc. | 474,784 | 80,447,401 | ||||||
|
| |||||||
155,590,754 | ||||||||
Biotechnology — 2.1% | ||||||||
AbbVie, Inc. | 608,766 | 90,742,660 | ||||||
Amgen, Inc. | 184,488 | 49,582,995 | ||||||
Gilead Sciences, Inc. | 429,753 | 32,205,690 | ||||||
|
| |||||||
172,531,345 | ||||||||
Broadline Retail — 4.7% | ||||||||
Amazon.com, Inc.(a) | 3,131,572 | 398,085,433 | ||||||
|
| |||||||
Capital Markets — 1.7% | ||||||||
Bank of New York Mellon Corp. (The) | 269,473 | 11,493,023 | ||||||
BlackRock, Inc.(b) | 48,405 | 31,293,348 | ||||||
Charles Schwab Corp. (The) | 512,864 | 28,156,234 | ||||||
Goldman Sachs Group, Inc. (The) | 113,703 | 36,790,880 | ||||||
Morgan Stanley | 440,049 | 35,938,802 | ||||||
|
| |||||||
143,672,287 | ||||||||
Chemicals — 0.9% | ||||||||
Dow, Inc. | 242,771 | 12,517,273 | ||||||
Linde PLC | 168,292 | 62,663,526 | ||||||
|
| |||||||
75,180,799 | ||||||||
Communications Equipment — 0.9% | ||||||||
Cisco Systems, Inc. | 1,405,494 | 75,559,357 | ||||||
|
| |||||||
Consumer Finance — 0.5% | ||||||||
American Express Co. | 200,665 | 29,937,211 | ||||||
Capital One Financial Corp. | 131,450 | 12,757,223 | ||||||
|
| |||||||
42,694,434 | ||||||||
Consumer Staples Distribution & Retail — 2.2% | ||||||||
Costco Wholesale Corp. | 152,843 | 86,350,181 | ||||||
Target Corp. | 159,497 | 17,635,583 | ||||||
Walmart, Inc. | 492,243 | 78,724,423 | ||||||
|
| |||||||
182,710,187 |
Security | Shares | Value | ||||||
| ||||||||
Diversified Telecommunication Services — 1.0% | ||||||||
AT&T Inc. | 2,465,700 | $ | 37,034,814 | |||||
Verizon Communications, Inc. | 1,449,980 | 46,993,852 | ||||||
|
| |||||||
84,028,666 | ||||||||
Electric Utilities — 1.2% | ||||||||
Duke Energy Corp. | 266,363 | 23,509,198 | ||||||
Exelon Corp. | 342,448 | 12,941,110 | ||||||
NextEra Energy, Inc. | 697,982 | 39,987,389 | ||||||
Southern Co. (The) | 376,132 | 24,343,263 | ||||||
|
| |||||||
100,780,960 | ||||||||
Electrical Equipment — 0.2% | ||||||||
Emerson Electric Co. | 197,492 | 19,071,802 | ||||||
|
| |||||||
Entertainment — 1.3% | ||||||||
Netflix, Inc.(a) | 152,843 | 57,713,517 | ||||||
Walt Disney Co. (The)(a) | 631,094 | 51,150,168 | ||||||
|
| |||||||
108,863,685 | ||||||||
Financial Services — 5.8% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 628,990 | 220,335,197 | ||||||
Mastercard, Inc., Class A | 286,963 | 113,611,521 | ||||||
PayPal Holdings, Inc.(a) | 378,480 | 22,125,941 | ||||||
Visa, Inc., Class A | 554,182 | 127,467,402 | ||||||
|
| |||||||
483,540,061 | ||||||||
Food Products — 0.5% | ||||||||
Kraft Heinz Co. (The) | 275,691 | 9,274,245 | ||||||
Mondelez International, Inc., Class A | 469,211 | 32,563,244 | ||||||
|
| |||||||
41,837,489 | ||||||||
Ground Transportation — 0.5% | ||||||||
Union Pacific Corp. | 210,201 | 42,803,230 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 1.1% | ||||||||
Abbott Laboratories | 598,529 | 57,967,534 | ||||||
Medtronic PLC | 459,118 | 35,976,486 | ||||||
|
| |||||||
93,944,020 | ||||||||
Health Care Providers & Services — 2.3% | ||||||||
CVS Health Corp. | 442,991 | 30,929,631 | ||||||
UnitedHealth Group, Inc. | 319,483 | 161,080,134 | ||||||
|
| |||||||
192,009,765 | ||||||||
Hotels, Restaurants & Leisure — 1.7% | ||||||||
Booking Holdings, Inc.(a) | 12,309 | 37,960,341 | ||||||
McDonald’s Corp. | 251,350 | 66,215,644 | ||||||
Starbucks Corp. | 395,050 | 36,056,213 | ||||||
|
| |||||||
140,232,198 | ||||||||
Household Products — 1.7% | ||||||||
Colgate-Palmolive Co. | 284,856 | 20,256,110 | ||||||
Procter & Gamble Co. (The) | 813,038 | 118,589,723 | ||||||
|
| |||||||
138,845,833 | ||||||||
Industrial Conglomerates — 1.2% | ||||||||
3M Co. | 190,647 | 17,848,372 | ||||||
General Electric Co. | 375,384 | 41,498,701 | ||||||
Honeywell International, Inc. | 229,001 | 42,305,645 | ||||||
|
| |||||||
101,652,718 | ||||||||
Insurance — 0.3% | ||||||||
American International Group, Inc. | 244,958 | 14,844,455 | ||||||
MetLife, Inc. | 218,579 | 13,750,805 | ||||||
|
| |||||||
28,595,260 | ||||||||
Interactive Media & Services — 8.6% | ||||||||
Alphabet, Inc., Class A(a) | 2,046,300 | 267,778,818 |
SCHEDULES OF INVESTMENTS | 9 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 100 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Interactive Media & Services (continued) | ||||||||
Alphabet, Inc., Class C, NVS(a) | 1,740,672 | $ | 229,507,603 | |||||
Meta Platforms, Inc., Class A(a) | 766,571 | 230,132,280 | ||||||
|
| |||||||
727,418,701 | ||||||||
IT Services — 1.3% | ||||||||
Accenture PLC, Class A | 217,563 | 66,815,773 | ||||||
International Business Machines Corp. | 314,206 | 44,083,102 | ||||||
|
| |||||||
110,898,875 | ||||||||
Life Sciences Tools & Services — 1.5% | ||||||||
Danaher Corp. | 226,647 | 56,231,121 | ||||||
Thermo Fisher Scientific, Inc. | 133,114 | 67,378,313 | ||||||
|
| |||||||
123,609,434 | ||||||||
Machinery — 1.0% | ||||||||
Caterpillar, Inc. | 175,948 | 48,033,804 | ||||||
Deere & Co. | 94,044 | 35,490,325 | ||||||
|
| |||||||
83,524,129 | ||||||||
Media — 0.9% | ||||||||
Charter Communications, Inc., Class A(a)(c) | 35,025 | 15,404,696 | ||||||
Comcast Corp., Class A | 1,419,507 | 62,940,940 | ||||||
|
| |||||||
78,345,636 | ||||||||
Oil, Gas & Consumable Fuels — 3.7% | ||||||||
Chevron Corp. | 611,946 | 103,186,334 | ||||||
ConocoPhillips | 413,017 | 49,479,437 | ||||||
Exxon Mobil Corp. | 1,380,706 | 162,343,412 | ||||||
|
| |||||||
315,009,183 | ||||||||
Pharmaceuticals — 5.6% | ||||||||
Bristol-Myers Squibb Co. | 720,534 | 41,819,793 | ||||||
Eli Lilly & Co. | 275,026 | 147,724,716 | ||||||
Johnson & Johnson | 830,527 | 129,354,580 | ||||||
Merck & Co., Inc. | 875,195 | 90,101,325 | ||||||
Pfizer, Inc. | 1,947,299 | 64,591,908 | ||||||
|
| |||||||
473,592,322 | ||||||||
Retail REITs — 0.1% | ||||||||
Simon Property Group, Inc. | 113,042 | 12,211,927 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 8.2% | ||||||||
Advanced Micro Devices, Inc.(a) | 557,248 | 57,296,239 | ||||||
Broadcom, Inc. | 142,335 | 118,220,604 | ||||||
Intel Corp. | 1,444,446 | 51,350,055 | ||||||
NVIDIA Corp. | 851,908 | 370,571,461 | ||||||
QUALCOMM, Inc. | 384,909 | 42,747,994 | ||||||
Texas Instruments, Inc. | 313,159 | 49,795,413 | ||||||
|
| |||||||
689,981,766 | ||||||||
Software — 12.1% | ||||||||
Adobe, Inc.(a) | 157,207 | 80,159,849 |
Security | Shares | Value | ||||||
| ||||||||
Software (continued) | ||||||||
Microsoft Corp. | 2,562,537 | $ | 809,121,058 | |||||
Oracle Corp. | 542,968 | 57,511,171 | ||||||
Salesforce, Inc.(a) | 335,935 | 68,120,899 | ||||||
|
| |||||||
1,014,912,977 | ||||||||
Specialized REITs — 0.3% | ||||||||
American Tower Corp. | 160,777 | 26,439,778 | ||||||
|
| |||||||
Specialty Retail — 1.7% | ||||||||
Home Depot, Inc. (The) | 346,756 | 104,775,793 | ||||||
Lowe’s Cos., Inc. | 202,105 | 42,005,503 | ||||||
|
| |||||||
146,781,296 | ||||||||
Technology Hardware, Storage & Peripherals — 10.3% | ||||||||
Apple Inc. | 5,068,733 | 867,817,777 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.5% | ||||||||
NIKE, Inc., Class B | 422,529 | 40,402,223 | ||||||
|
| |||||||
Tobacco — 0.9% | ||||||||
Altria Group, Inc. | 612,050 | 25,736,703 | ||||||
Philip Morris International, Inc. | 535,406 | 49,567,887 | ||||||
|
| |||||||
75,304,590 | ||||||||
Wireless Telecommunication Services — 0.3% | ||||||||
T-Mobile U.S., Inc.(a) | 178,504 | 24,999,485 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% | ||||||||
(Cost: $7,107,191,880) | 8,394,016,885 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(b)(d)(e) | 15,716,314 | 15,722,601 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(d) | 47,409,678 | 47,409,678 | ||||||
|
| |||||||
Total Short-Term Securities — 0.7% | ||||||||
(Cost: $63,132,082) | 63,132,279 | |||||||
|
| |||||||
Total Investments — 100.5% | ||||||||
(Cost: $7,170,323,962) | 8,457,149,164 | |||||||
Liabilities in Excess of Other Assets — (0.5)% |
| (42,868,390 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 8,414,280,774 | ||||||
|
|
(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | All or a portion of this security is on loan. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
10 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 100 ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | — | $ | 15,721,538 | (a) | $ | — | $ | 866 | $ | 197 | $ | 15,722,601 | 15,716,314 | $ | 11,979 | (b) | $ | — | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 14,929,868 | 32,479,810 | (a) | — | — | — | 47,409,678 | 47,409,678 | 510,398 | — | ||||||||||||||||||||||||||||||||
BlackRock, Inc. | 33,178,984 | 3,410,680 | (4,325,674 | ) | (61,967 | ) | (908,675 | ) | 31,293,348 | 48,405 | 507,480 | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
$ | (61,101 | ) | $ | (908,478 | ) | $ | 94,425,627 | $ | 1,029,857 | $ | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
(a) Represents net amount purchased (sold). (b) All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
|
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | 93 | 12/15/23 | $ | 20,114 | $ | (796,468 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 796,468 | $ | — | $ | — | $ | — | $ | 796,468 | ||||||||||||||
(a) Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
|
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ — | $ | — | $ | 2,351,967 | $ | — | $ | — | $ | — | $ | 2,351,967 | |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ — | $ | — | $ | (1,809,626) | $ | — | $ | — | $ | — | $ | (1,809,626) |
SCHEDULES OF INVESTMENTS | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 100 ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts | ||||
Average notional value of contracts — long | $ | 21,838,444 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 8,394,016,885 | $ | — | $ | — | $ | 8,394,016,885 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 63,132,279 | — | — | 63,132,279 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 8,457,149,164 | $ | — | $ | — | $ | 8,457,149,164 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (796,468 | ) | $ | — | $ | — | $ | (796,468 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
12 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® S&P 500 Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.0% | ||||||||
Axon Enterprise, Inc.(a) | 120,923 | $ | 24,062,468 | |||||
General Dynamics Corp. | 205,648 | 45,442,039 | ||||||
L3Harris Technologies, Inc. | 162,564 | 28,305,644 | ||||||
Lockheed Martin Corp. | 272,670 | 111,511,123 | ||||||
Northrop Grumman Corp. | 175,460 | 77,235,737 | ||||||
TransDigm Group, Inc.(a) | 44,341 | 37,385,227 | ||||||
|
| |||||||
323,942,238 | ||||||||
Air Freight & Logistics — 0.1% | ||||||||
CH Robinson Worldwide, Inc. | 106,512 | 9,173,878 | ||||||
Expeditors International of Washington, Inc. | 254,230 | 29,142,385 | ||||||
|
| |||||||
38,316,263 | ||||||||
Automobiles — 3.5% | ||||||||
Tesla, Inc.(a) | 4,731,557 | 1,183,930,192 | ||||||
|
| |||||||
Beverages — 2.3% | ||||||||
Brown-Forman Corp., Class B, NVS | 172,095 | 9,928,160 | ||||||
Coca-Cola Co. (The) | 4,334,656 | 242,654,043 | ||||||
Constellation Brands, Inc., Class A | 154,781 | 38,901,109 | ||||||
Keurig Dr Pepper, Inc. | 864,668 | 27,297,569 | ||||||
Monster Beverage Corp.(a)(b) | 1,274,377 | 67,478,262 | ||||||
PepsiCo, Inc. | 2,358,743 | 399,665,414 | ||||||
|
| |||||||
785,924,557 | ||||||||
Biotechnology — 3.8% | ||||||||
AbbVie, Inc. | 3,024,369 | 450,812,443 | ||||||
Amgen, Inc. | 916,541 | 246,329,559 | ||||||
Biogen, Inc.(a) | 116,694 | 29,991,525 | ||||||
Gilead Sciences, Inc. | 2,135,018 | 159,998,249 | ||||||
Incyte Corp.(a) | 318,639 | 18,407,775 | ||||||
Moderna, Inc.(a)(b) | 567,179 | 58,583,919 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 182,900 | 150,519,384 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 442,240 | 153,784,538 | ||||||
|
| |||||||
1,268,427,392 | ||||||||
Broadline Retail — 2.7% | ||||||||
Amazon.com, Inc.(a) | 7,156,557 | 909,741,526 | ||||||
Etsy, Inc.(a)(b) | 123,371 | 7,967,299 | ||||||
|
| |||||||
917,708,825 | ||||||||
Building Products — 0.0% | ||||||||
Masco Corp. | 274,185 | 14,655,188 | ||||||
|
| |||||||
Capital Markets — 1.3% | ||||||||
Ameriprise Financial, Inc. | 175,811 | 57,961,371 | ||||||
Blackstone, Inc., Class A, NVS | 1,216,143 | 130,297,561 | ||||||
Cboe Global Markets, Inc. | 121,140 | 18,923,279 | ||||||
Charles Schwab Corp. (The) | 1,503,271 | 82,529,578 | ||||||
FactSet Research Systems, Inc. | 39,182 | 17,132,721 | ||||||
MarketAxess Holdings, Inc. | 31,525 | 6,735,001 | ||||||
Moody’s Corp. | 126,880 | 40,115,650 | ||||||
MSCI, Inc., Class A | 77,101 | 39,558,981 | ||||||
Nasdaq, Inc. | 370,806 | 18,017,464 | ||||||
Raymond James Financial, Inc. | 323,094 | 32,448,330 | ||||||
|
| |||||||
443,719,936 | ||||||||
Chemicals — 1.3% | ||||||||
Air Products & Chemicals, Inc. | 380,648 | 107,875,643 | ||||||
Albemarle Corp.(b) | 200,583 | 34,107,134 | ||||||
CF Industries Holdings, Inc. | 331,670 | 28,437,386 | ||||||
Corteva, Inc. | 837,964 | 42,870,238 | ||||||
FMC Corp. | 215,092 | 14,404,711 |
Security | Shares | Value | ||||||
| ||||||||
Chemicals (continued) | ||||||||
Linde PLC | 510,012 | $ | 189,902,968 | |||||
Mosaic Co. (The) | 567,093 | 20,188,511 | ||||||
|
| |||||||
437,786,591 | ||||||||
Commercial Services & Supplies — 0.6% | ||||||||
Cintas Corp. | 87,311 | 41,997,464 | ||||||
Copart, Inc.(a) | 1,488,910 | 64,157,132 | ||||||
Republic Services, Inc. | 193,723 | 27,607,465 | ||||||
Rollins, Inc. | 482,610 | 18,015,831 | ||||||
Waste Management, Inc. | 372,558 | 56,792,741 | ||||||
|
| |||||||
208,570,633 | ||||||||
Communications Equipment — 0.4% | ||||||||
Arista Networks, Inc.(a)(b) | 429,652 | 79,025,892 | ||||||
Motorola Solutions, Inc. | 157,187 | 42,792,589 | ||||||
|
| |||||||
121,818,481 | ||||||||
Construction & Engineering — 0.1% | ||||||||
Quanta Services, Inc. | 248,794 | 46,541,894 | ||||||
|
| |||||||
Construction Materials — 0.1% | ||||||||
Vulcan Materials Co. | 134,587 | 27,189,266 | ||||||
|
| |||||||
Consumer Finance — 0.3% | ||||||||
American Express Co. | 488,485 | 72,877,077 | ||||||
Discover Financial Services | 249,204 | 21,588,543 | ||||||
|
| |||||||
94,465,620 | ||||||||
Consumer Staples Distribution & Retail — 1.1% | ||||||||
Costco Wholesale Corp. | 501,154 | 283,131,964 | ||||||
Dollar General Corp. | 375,835 | 39,763,343 | ||||||
Dollar Tree, Inc.(a)(b) | 359,151 | 38,231,624 | ||||||
|
| |||||||
361,126,931 | ||||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 173,696 | 25,078,229 | ||||||
Pool Corp. | 42,031 | 14,967,239 | ||||||
|
| |||||||
40,045,468 | ||||||||
Electric Utilities — 0.2% | ||||||||
NRG Energy, Inc. | 185,485 | 7,144,882 | ||||||
PG&E Corp.(a) | 3,583,145 | 57,796,129 | ||||||
|
| |||||||
64,941,011 | ||||||||
Electrical Equipment — 0.1% | ||||||||
AMETEK, Inc.(b) | 198,120 | 29,274,211 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.4% | ||||||||
Amphenol Corp., Class A | 1,022,011 | 85,838,704 | ||||||
CDW Corp. | 145,165 | 29,288,490 | ||||||
Keysight Technologies, Inc.(a) | 165,041 | 21,836,575 | ||||||
|
| |||||||
136,963,769 | ||||||||
Energy Equipment & Services — 0.2% | ||||||||
Schlumberger NV | 1,290,640 | 75,244,312 | ||||||
|
| |||||||
Entertainment — 0.3% | ||||||||
Activision Blizzard, Inc. | 723,238 | 67,716,774 | ||||||
Electronic Arts, Inc. | 286,492 | 34,493,637 | ||||||
|
| |||||||
102,210,411 | ||||||||
Financial Services — 3.9% | ||||||||
Fiserv, Inc.(a) | 720,747 | 81,415,581 | ||||||
FleetCor Technologies, Inc.(a)(b) | 67,104 | 17,134,335 | ||||||
Jack Henry & Associates, Inc. | 124,820 | 18,865,295 | ||||||
Mastercard, Inc., Class A | 1,425,640 | 564,425,133 | ||||||
Visa, Inc., Class A | 2,753,197 | 633,262,842 | ||||||
|
| |||||||
1,315,103,186 |
SCHEDULES OF INVESTMENTS | 13 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Food Products — 0.9% | ||||||||
Archer-Daniels-Midland Co. | 451,557 | $ | 34,056,429 | |||||
Bunge Ltd. | 106,112 | 11,486,624 | ||||||
Campbell Soup Co. | 198,369 | 8,148,999 | ||||||
General Mills, Inc. | 680,943 | 43,573,543 | ||||||
Hershey Co. (The) | 257,598 | 51,540,208 | ||||||
Hormel Foods Corp. | 356,277 | 13,549,214 | ||||||
Kellanova | 244,028 | 14,522,106 | ||||||
Lamb Weston Holdings, Inc. | 249,164 | 23,037,703 | ||||||
McCormick & Co., Inc., NVS | 218,598 | 16,534,753 | ||||||
Mondelez International, Inc., Class A | 1,258,766 | 87,358,360 | ||||||
|
| |||||||
303,807,939 | ||||||||
Gas Utilities — 0.0% | ||||||||
Atmos Energy Corp. | 155,672 | 16,490,335 | ||||||
|
| |||||||
Ground Transportation — 0.7% | ||||||||
CSX Corp. | 1,649,034 | 50,707,796 | ||||||
JB Hunt Transport Services, Inc. | 140,345 | 26,457,839 | ||||||
Old Dominion Freight Line, Inc.(b) | 153,516 | 62,809,536 | ||||||
Union Pacific Corp. | 522,145 | 106,324,386 | ||||||
|
| |||||||
246,299,557 | ||||||||
Health Care Equipment & Supplies — 1.4% | ||||||||
Abbott Laboratories | 1,546,219 | 149,751,310 | ||||||
Boston Scientific Corp.(a) | 1,329,724 | 70,209,427 | ||||||
Dexcom, Inc.(a) | 663,993 | 61,950,547 | ||||||
Hologic, Inc.(a) | 421,048 | 29,220,731 | ||||||
IDEXX Laboratories, Inc.(a) | 69,511 | 30,395,075 | ||||||
Insulet Corp.(a)(b) | 120,276 | 19,182,819 | ||||||
Intuitive Surgical, Inc.(a) | 294,999 | 86,225,258 | ||||||
ResMed, Inc. | 136,550 | 20,191,649 | ||||||
|
| |||||||
467,126,816 | ||||||||
Health Care Providers & Services — 3.7% | ||||||||
Cigna Group (The) | 248,505 | 71,089,825 | ||||||
Elevance Health, Inc. | 403,778 | 175,813,017 | ||||||
HCA Healthcare, Inc. | 186,036 | 45,761,135 | ||||||
Humana, Inc. | 135,880 | 66,108,338 | ||||||
McKesson Corp. | 106,213 | 46,186,723 | ||||||
Molina Healthcare, Inc.(a) | 99,980 | 32,782,442 | ||||||
Quest Diagnostics, Inc. | 126,787 | 15,450,264 | ||||||
UnitedHealth Group, Inc. | 1,587,203 | 800,251,881 | ||||||
|
| |||||||
1,253,443,625 | ||||||||
Hotels, Restaurants & Leisure — 1.6% | ||||||||
Airbnb, Inc., Class A(a)(b) | 291,646 | 40,016,747 | ||||||
Chipotle Mexican Grill, Inc.(a) | 47,272 | 86,594,268 | ||||||
Domino’s Pizza, Inc. | 27,934 | 10,581,120 | ||||||
Hilton Worldwide Holdings, Inc. | 215,777 | 32,405,390 | ||||||
Marriott International, Inc., Class A | 218,601 | 42,968,212 | ||||||
McDonald’s Corp. | 774,207 | 203,957,092 | ||||||
Starbucks Corp. | 1,000,936 | 91,355,429 | ||||||
Yum! Brands, Inc. | 307,286 | 38,392,313 | ||||||
|
| |||||||
546,270,571 | ||||||||
Household Durables — 0.1% | ||||||||
DR Horton, Inc. | 261,693 | 28,124,147 | ||||||
|
| |||||||
Household Products — 1.3% | ||||||||
Clorox Co. (The) | 95,271 | 12,486,217 | ||||||
Colgate-Palmolive Co. | 778,830 | 55,382,601 | ||||||
Kimberly-Clark Corp. | 277,483 | 33,533,821 | ||||||
Procter & Gamble Co. (The) | 2,221,557 | 324,036,304 | ||||||
|
| |||||||
425,438,943 | ||||||||
Independent Power and Renewable Electricity Producers — 0.0% | ||||||||
AES Corp. (The) | 682,078 | 10,367,586 | ||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Insurance — 1.8% | ||||||||
Aon PLC, Class A | 229,420 | $ | 74,382,552 | |||||
Arch Capital Group Ltd.(a)(b) | 639,049 | 50,938,596 | ||||||
Arthur J. Gallagher & Co. | 236,416 | 53,886,299 | ||||||
Brown & Brown, Inc. | 237,699 | 16,600,898 | ||||||
Chubb Ltd. | 401,158 | 83,513,073 | ||||||
Everest Group Ltd. | 42,727 | 15,880,344 | ||||||
Globe Life, Inc. | 104,628 | 11,376,203 | ||||||
Marsh & McLennan Cos., Inc. | 541,683 | 103,082,275 | ||||||
Principal Financial Group, Inc. | 233,177 | 16,805,066 | ||||||
Progressive Corp. (The) | 1,002,957 | 139,711,910 | ||||||
Travelers Cos., Inc. (The) | 211,319 | 34,510,506 | ||||||
W R Berkley Corp. | 346,219 | 21,981,444 | ||||||
|
| |||||||
622,669,166 | ||||||||
Interactive Media & Services — 7.3% | ||||||||
Alphabet, Inc., Class A(a) | 10,166,067 | 1,330,331,528 | ||||||
Alphabet, Inc., Class C, NVS(a) | 8,647,700 | 1,140,199,245 | ||||||
|
| |||||||
2,470,530,773 | ||||||||
IT Services — 0.7% | ||||||||
Accenture PLC, Class A | 529,619 | 162,651,291 | ||||||
EPAM Systems, Inc.(a) | 67,634 | 17,293,337 | ||||||
Gartner, Inc.(a) | 134,934 | 46,364,672 | ||||||
VeriSign, Inc.(a) | 75,437 | 15,278,256 | ||||||
|
| |||||||
241,587,556 | ||||||||
Life Sciences Tools & Services — 2.2% | ||||||||
Agilent Technologies, Inc. | 304,287 | 34,025,372 | ||||||
Bio-Techne Corp. | 129,005 | 8,781,370 | ||||||
Danaher Corp. | 1,125,982 | 279,356,134 | ||||||
IQVIA Holdings, Inc.(a)(b) | 150,093 | 29,530,798 | ||||||
Mettler-Toledo International, Inc.(a) | 24,436 | 27,076,799 | ||||||
Thermo Fisher Scientific, Inc. | 661,316 | 334,738,320 | ||||||
Waters Corp.(a)(b) | 101,531 | 27,840,815 | ||||||
|
| |||||||
741,349,608 | ||||||||
Machinery — 1.3% | ||||||||
Caterpillar, Inc. | 524,471 | 143,180,583 | ||||||
Cummins, Inc. | 124,015 | 28,332,467 | ||||||
Deere & Co. | 467,210 | 176,315,710 | ||||||
IDEX Corp. | 73,666 | 15,324,001 | ||||||
Illinois Tool Works, Inc. | 240,389 | 55,363,990 | ||||||
Snap-on, Inc. | 51,812 | 13,215,169 | ||||||
|
| |||||||
431,731,920 | ||||||||
Metals & Mining — 0.6% | ||||||||
Freeport-McMoRan, Inc. | 2,456,505 | 91,603,071 | ||||||
Nucor Corp. | 426,179 | 66,633,087 | ||||||
Steel Dynamics, Inc. | 267,656 | 28,698,076 | ||||||
|
| |||||||
186,934,234 | ||||||||
Multi-Utilities — 0.2% | ||||||||
Sempra | 646,983 | 44,014,253 | ||||||
WEC Energy Group, Inc. | 280,785 | 22,617,232 | ||||||
|
| |||||||
66,631,485 | ||||||||
Oil, Gas & Consumable Fuels — 7.0% | ||||||||
APA Corp. | 527,446 | 21,678,031 | ||||||
Chevron Corp. | 3,040,157 | 512,631,273 | ||||||
ConocoPhillips | 2,051,873 | 245,814,385 | ||||||
Coterra Energy, Inc. | 1,298,943 | 35,136,408 | ||||||
Devon Energy Corp. | 1,097,056 | 52,329,571 | ||||||
Diamondback Energy, Inc. | 306,058 | 47,402,263 | ||||||
EOG Resources, Inc. | 997,690 | 126,467,184 | ||||||
EQT Corp. | 618,337 | 25,092,116 | ||||||
Exxon Mobil Corp. | 6,859,385 | 806,526,488 |
14 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Hess Corp. | 473,514 | $ | 72,447,642 | |||||
Marathon Oil Corp. | 1,041,172 | 27,851,351 | ||||||
Marathon Petroleum Corp. | 328,617 | 49,732,897 | ||||||
Occidental Petroleum Corp. | 1,136,911 | 73,762,786 | ||||||
ONEOK, Inc. | 997,635 | 63,279,988 | ||||||
Pioneer Natural Resources Co. | 399,483 | 91,701,323 | ||||||
Targa Resources Corp. | 384,557 | 32,964,226 | ||||||
Williams Cos., Inc. (The) | 2,084,312 | 70,220,471 | ||||||
|
| |||||||
2,355,038,403 | ||||||||
Personal Care Products — 0.2% | ||||||||
Kenvue, Inc. | 2,952,775 | 59,291,722 | ||||||
|
| |||||||
Pharmaceuticals — 6.2% | ||||||||
Bristol-Myers Squibb Co. | 3,579,634 | 207,761,957 | ||||||
Eli Lilly & Co. | 1,366,341 | 733,902,741 | ||||||
Johnson & Johnson | 2,558,170 | 398,434,978 | ||||||
Merck & Co., Inc. | 4,347,988 | 447,625,365 | ||||||
Pfizer, Inc. | 9,674,230 | 320,894,209 | ||||||
|
| |||||||
2,108,619,250 | ||||||||
Professional Services — 0.9% | ||||||||
Automatic Data Processing, Inc. | 705,932 | 169,833,120 | ||||||
Broadridge Financial Solutions, Inc. | 97,755 | 17,503,033 | ||||||
Equifax, Inc. | 102,984 | 18,864,609 | ||||||
Leidos Holdings, Inc. | 154,213 | 14,212,270 | ||||||
Paychex, Inc. | 313,327 | 36,136,003 | ||||||
Paycom Software, Inc. | 83,686 | 21,697,269 | ||||||
Verisk Analytics, Inc. | 114,183 | 26,974,592 | ||||||
|
| |||||||
305,220,896 | ||||||||
Real Estate Management & Development — 0.2% | ||||||||
CoStar Group, Inc.(a)(b) | 699,363 | 53,774,021 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 10.4% | ||||||||
Advanced Micro Devices, Inc.(a) | 1,494,946 | 153,710,348 | ||||||
Analog Devices, Inc. | 403,809 | 70,702,918 | ||||||
Applied Materials, Inc. | 1,438,888 | 199,214,044 | ||||||
Broadcom, Inc. | 424,276 | 352,395,160 | ||||||
Enphase Energy, Inc.(a)(b) | 234,389 | 28,161,838 | ||||||
First Solar, Inc.(a) | 183,637 | 29,673,903 | ||||||
KLA Corp. | 234,267 | 107,448,902 | ||||||
Lam Research Corp. | 228,401 | 143,154,895 | ||||||
Microchip Technology, Inc. | 455,904 | 35,583,307 | ||||||
Monolithic Power Systems, Inc. | 81,687 | 37,739,394 | ||||||
NVIDIA Corp. | 4,232,291 | 1,841,004,262 | ||||||
NXP Semiconductors NV | 260,451 | 52,069,364 | ||||||
ON Semiconductor Corp.(a)(b) | 739,415 | 68,728,624 | ||||||
QUALCOMM, Inc. | 1,912,241 | 212,373,486 | ||||||
SolarEdge Technologies, Inc.(a)(b) | 97,328 | 12,604,949 | ||||||
Teradyne, Inc.(b) | 128,626 | 12,921,768 | ||||||
Texas Instruments, Inc. | 980,143 | 155,852,538 | ||||||
|
| |||||||
3,513,339,700 | ||||||||
Software — 10.5% | ||||||||
Adobe, Inc.(a) | 367,071 | 187,169,503 | ||||||
Autodesk, Inc.(a) | 201,090 | 41,607,532 | ||||||
Cadence Design Systems, Inc.(a) | 465,705 | 109,114,681 | ||||||
Fair Isaac Corp.(a) | 42,507 | 36,918,605 | ||||||
Fortinet, Inc.(a)(b) | 1,116,895 | 65,539,399 | ||||||
Gen Digital, Inc. | 514,447 | 9,095,423 | ||||||
Intuit, Inc. | 254,335 | 129,949,925 | ||||||
Microsoft Corp. | 7,383,828 | 2,331,443,691 | ||||||
Oracle Corp.(b) | 1,591,513 | 168,573,057 | ||||||
Palo Alto Networks, Inc.(a)(b) | 524,075 | 122,864,143 |
Security | Shares | Value | ||||||
| ||||||||
Software (continued) | ||||||||
PTC, Inc.(a)(b) | 204,269 | $ | 28,940,832 | |||||
ServiceNow, Inc.(a) | 349,551 | 195,385,027 | ||||||
Synopsys, Inc.(a) | 260,721 | 119,663,117 | ||||||
Tyler Technologies, Inc.(a) | 33,887 | 13,085,126 | ||||||
|
| |||||||
3,559,350,061 | ||||||||
Specialized REITs — 0.7% | ||||||||
American Tower Corp. | 423,337 | 69,617,769 | ||||||
Extra Space Storage, Inc. | 180,503 | 21,945,555 | ||||||
Iron Mountain, Inc. | 314,226 | 18,680,736 | ||||||
Public Storage | 168,109 | 44,300,084 | ||||||
SBA Communications Corp., Class A | 104,264 | 20,870,525 | ||||||
VICI Properties, Inc. | 989,271 | 28,787,786 | ||||||
Weyerhaeuser Co. | 711,681 | 21,820,139 | ||||||
|
| |||||||
226,022,594 | ||||||||
Specialty Retail — 2.3% | ||||||||
AutoZone, Inc.(a) | 31,109 | 79,016,549 | ||||||
Home Depot, Inc. (The) | 913,026 | 275,879,936 | ||||||
Lowe’s Cos., Inc. | 692,804 | 143,992,384 | ||||||
O’Reilly Automotive, Inc.(a) | 103,499 | 94,066,101 | ||||||
TJX Cos., Inc. (The) | 1,260,284 | 112,014,042 | ||||||
Tractor Supply Co. | 186,063 | 37,780,092 | ||||||
Ulta Beauty, Inc.(a) | 85,605 | 34,194,917 | ||||||
|
| |||||||
776,944,021 | ||||||||
Technology Hardware, Storage & Peripherals — 12.8% | ||||||||
Apple Inc. | 25,181,581 | 4,311,338,483 | ||||||
|
| |||||||
Tobacco — 0.6% | ||||||||
Altria Group, Inc. | 1,581,194 | 66,489,208 | ||||||
Philip Morris International, Inc. | 1,436,351 | 132,977,375 | ||||||
|
| |||||||
199,466,583 | ||||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 481,104 | 26,287,523 | ||||||
WW Grainger, Inc. | 76,200 | 52,718,208 | ||||||
|
| |||||||
79,005,731 | ||||||||
Wireless Telecommunication Services — 0.2% | ||||||||
T-Mobile U.S., Inc.(a) | 603,137 | 84,469,337 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% | 33,728,591,438 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 145,103,696 | 145,161,737 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 153,222,760 | 153,222,760 | ||||||
|
| |||||||
Total Short-Term Securities — 0.9% | 298,384,497 | |||||||
|
| |||||||
Total Investments — 100.7% | 34,026,975,935 | |||||||
Liabilities in Excess of Other Assets — (0.7)% |
| (238,664,465 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 33,788,311,470 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
SCHEDULES OF INVESTMENTS | 15 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Growth ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain from Underlying |
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 237,690,559 | $ | — | $ (92,574,916 | )(a) | $ | 20,983 | $ | 25,111 | $ | 145,161,737 | 145,103,696 | $ | 1,195,928 | (b) | $ | — | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 41,154,407 | 112,068,353 | (a) | — | — | — | 153,222,760 | 153,222,760 | 1,284,199 | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
$ | 20,983 | $ | 25,111 | $ | 298,384,497 | $ | 2,480,127 | $ | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | 239 | 12/15/23 | $ | 51,690 | $ | (2,269,654 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 2,269,654 | $ | — | $ | — | $ | — | $ | 2,269,654 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 6,943,310 | $ | — | $ | — | $ | — | $ | 6,943,310 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (4,810,946 | ) | $ | — | $ | — | $ | — | $ | (4,810,946 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 58,833,500 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
16 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Growth ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 33,728,591,438 | $ | — | $ | — | $ | 33,728,591,438 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 298,384,497 | — | — | 298,384,497 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 34,026,975,935 | $ | — | $ | — | $ | 34,026,975,935 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (2,269,654 | ) | $ | — | $ | — | $ | (2,269,654 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 17 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® S&P 500 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 2.2% |
| |||||||
Boeing Co. (The)(a) | 835,220 | $ | 160,094,970 | |||||
General Dynamics Corp. | 156,756 | 34,638,373 | ||||||
Howmet Aerospace, Inc. | 579,576 | 26,805,390 | ||||||
Huntington Ingalls Industries, Inc. | 59,028 | 12,075,948 | ||||||
L3Harris Technologies, Inc. | 139,298 | 24,254,568 | ||||||
Lockheed Martin Corp. | 95,714 | 39,143,198 | ||||||
Northrop Grumman Corp. | 58,659 | 25,821,105 | ||||||
RTX Corp. | 2,144,004 | 154,303,968 | ||||||
Textron, Inc. | 290,579 | 22,705,843 | ||||||
TransDigm Group, Inc.(a) | 43,049 | 36,295,903 | ||||||
|
| |||||||
536,139,266 | ||||||||
Air Freight & Logistics — 1.1% | ||||||||
CH Robinson Worldwide, Inc. | 79,045 | 6,808,146 | ||||||
FedEx Corp. | 340,841 | 90,295,597 | ||||||
United Parcel Service, Inc., Class B | 1,065,401 | 166,064,054 | ||||||
|
| |||||||
263,167,797 | ||||||||
Automobile Components — 0.2% | ||||||||
Aptiv PLC(a) | 416,545 | 41,067,172 | ||||||
BorgWarner, Inc. | 347,647 | 14,034,509 | ||||||
|
| |||||||
55,101,681 | ||||||||
Automobiles — 0.6% | ||||||||
Ford Motor Co. | 5,790,995 | 71,924,158 | ||||||
General Motors Co. | 2,026,737 | 66,821,519 | ||||||
|
| |||||||
138,745,677 | ||||||||
Banks — 6.6% | ||||||||
Bank of America Corp. | 10,183,499 | 278,824,203 | ||||||
Citigroup, Inc. | 2,836,599 | 116,669,317 | ||||||
Citizens Financial Group, Inc. | 699,009 | 18,733,441 | ||||||
Comerica, Inc. | 195,803 | 8,135,615 | ||||||
Fifth Third Bancorp | 1,002,964 | 25,405,078 | ||||||
Huntington Bancshares, Inc. | 2,130,849 | 22,160,830 | ||||||
JPMorgan Chase & Co. | 4,280,723 | 620,790,449 | ||||||
KeyCorp. | 1,369,249 | 14,733,119 | ||||||
M&T Bank Corp. | 244,365 | 30,899,954 | ||||||
PNC Financial Services Group, Inc. (The) | 586,638 | 72,021,547 | ||||||
Regions Financial Corp. | 1,382,249 | 23,774,683 | ||||||
Truist Financial Corp. | 1,962,028 | 56,133,621 | ||||||
U.S. Bancorp | 2,293,442 | 75,821,193 | ||||||
Wells Fargo & Co. | 5,389,463 | 220,213,458 | ||||||
Zions Bancorp N.A. | 218,182 | 7,612,370 | ||||||
|
| |||||||
1,591,928,878 | ||||||||
Beverages — 0.8% | ||||||||
Brown-Forman Corp., Class B, NVS | 119,657 | 6,903,012 | ||||||
Coca-Cola Co. (The) | 2,006,503 | 112,324,038 | ||||||
Constellation Brands, Inc., Class A | 104,875 | 26,358,234 | ||||||
Keurig Dr Pepper, Inc. | 744,475 | 23,503,076 | ||||||
Molson Coors Beverage Co., Class B | 274,559 | 17,459,207 | ||||||
|
| |||||||
186,547,567 | ||||||||
Biotechnology — 0.1% | ||||||||
Biogen, Inc.(a)(b) | 113,063 | 29,058,322 | ||||||
|
| |||||||
Broadline Retail — 4.0% | ||||||||
Amazon.com, Inc.(a) | 7,222,214 | 918,087,844 | ||||||
eBay, Inc. | 782,971 | 34,521,191 | ||||||
Etsy, Inc.(a)(b) | 76,902 | 4,966,331 | ||||||
|
| |||||||
957,575,366 | ||||||||
Building Products — 0.9% | ||||||||
A O Smith Corp. | 182,049 | 12,038,900 |
Security | Shares | Value | ||||||
Building Products (continued) |
| |||||||
Allegion PLC | 129,687 | $ | 13,513,386 | |||||
Carrier Global Corp. | 1,233,843 | 68,108,134 | ||||||
Johnson Controls International PLC | 1,002,125 | 53,323,071 | ||||||
Masco Corp. | 95,272 | 5,092,288 | ||||||
Trane Technologies PLC | 336,435 | 68,266,026 | ||||||
|
| |||||||
220,341,805 | ||||||||
Capital Markets — 4.7% | ||||||||
Bank of New York Mellon Corp. (The) | 1,147,162 | 48,926,459 | ||||||
BlackRock, Inc.(c) | 206,731 | 133,649,524 | ||||||
Cboe Global Markets, Inc. | 51,050 | 7,974,521 | ||||||
Charles Schwab Corp. (The) | 898,047 | 49,302,780 | ||||||
CME Group, Inc., Class A | 529,913 | 106,099,181 | ||||||
FactSet Research Systems, Inc. | 22,292 | 9,747,400 | ||||||
Franklin Resources, Inc. | 420,887 | 10,345,403 | ||||||
Goldman Sachs Group, Inc. (The) | 485,612 | 157,129,475 | ||||||
Intercontinental Exchange, Inc. | 843,067 | 92,754,231 | ||||||
Invesco Ltd. | 662,804 | 9,623,914 | ||||||
MarketAxess Holdings, Inc. | 27,992 | 5,980,211 | ||||||
Moody’s Corp. | 123,202 | 38,952,776 | ||||||
Morgan Stanley | 1,879,375 | 153,488,556 | ||||||
MSCI, Inc., Class A | 50,333 | 25,824,856 | ||||||
Nasdaq, Inc. | 177,899 | 8,644,112 | ||||||
Northern Trust Corp. | 305,773 | 21,245,108 | ||||||
S&P Global, Inc. | 479,321 | 175,148,687 | ||||||
State Street Corp. | 468,647 | 31,380,603 | ||||||
T Rowe Price Group, Inc. | 331,272 | 34,740,495 | ||||||
|
| |||||||
1,120,958,292 | ||||||||
Chemicals — 2.2% | ||||||||
Celanese Corp., Class A | 147,645 | 18,532,400 | ||||||
Corteva, Inc. | 322,263 | 16,486,975 | ||||||
Dow, Inc. | 1,035,644 | 53,397,805 | ||||||
DuPont de Nemours, Inc. | 676,206 | 50,438,206 | ||||||
Eastman Chemical Co. | 174,215 | 13,365,775 | ||||||
Ecolab, Inc. | 373,676 | 63,300,714 | ||||||
International Flavors & Fragrances, Inc. | 375,201 | 25,577,452 | ||||||
Linde PLC | 280,314 | 104,374,918 | ||||||
LyondellBasell Industries NV, Class A | 379,059 | 35,896,887 | ||||||
PPG Industries, Inc. | 346,916 | 45,029,697 | ||||||
Sherwin-Williams Co. (The) | 348,483 | 88,880,589 | ||||||
|
| |||||||
515,281,418 | ||||||||
Commercial Services & Supplies — 0.3% | ||||||||
Cintas Corp. | 52,353 | 25,182,317 | ||||||
Republic Services, Inc. | 136,118 | 19,398,176 | ||||||
Waste Management, Inc. | 222,394 | 33,901,741 | ||||||
|
| |||||||
78,482,234 | ||||||||
Communications Equipment — 1.6% | ||||||||
Cisco Systems, Inc. | 6,002,645 | 322,702,195 | ||||||
F5, Inc.(a) | 87,775 | 14,144,063 | ||||||
Juniper Networks, Inc. | 470,982 | 13,088,590 | ||||||
Motorola Solutions, Inc. | 110,516 | 30,086,876 | ||||||
|
| |||||||
380,021,724 | ||||||||
Construction Materials — 0.2% | ||||||||
Martin Marietta Materials, Inc. | 91,039 | 37,369,689 | ||||||
Vulcan Materials Co. | 80,645 | 16,291,903 | ||||||
|
| |||||||
53,661,592 | ||||||||
Consumer Finance — 0.6% | ||||||||
American Express Co. | 437,074 | 65,207,070 | ||||||
Capital One Financial Corp. | 561,871 | 54,529,581 |
18 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Consumer Finance (continued) |
| |||||||
Discover Financial Services | 155,087 | $ | 13,435,187 | |||||
Synchrony Financial | 612,550 | 18,725,653 | ||||||
|
| |||||||
151,897,491 | ||||||||
Consumer Staples Distribution & Retail — 2.7% | ||||||||
Costco Wholesale Corp. | 221,941 | 125,387,787 | ||||||
Kroger Co. (The) | 972,674 | 43,527,162 | ||||||
Sysco Corp. | 744,040 | 49,143,842 | ||||||
Target Corp. | 679,887 | 75,175,106 | ||||||
Walgreens Boots Alliance, Inc. | 1,057,922 | 23,528,185 | ||||||
Walmart, Inc. | 2,102,299 | 336,220,679 | ||||||
|
| |||||||
652,982,761 | ||||||||
Containers & Packaging — 0.5% | ||||||||
Amcor PLC | 2,165,250 | 19,833,690 | ||||||
Avery Dennison Corp. | 118,053 | 21,564,741 | ||||||
Ball Corp. | 465,021 | 23,148,745 | ||||||
International Paper Co. | 511,948 | 18,158,796 | ||||||
Packaging Corp. of America | 132,674 | 20,372,093 | ||||||
Sealed Air Corp. | 214,399 | 7,045,151 | ||||||
Westrock Co. | 376,301 | 13,471,576 | ||||||
|
| |||||||
123,594,792 | ||||||||
Distributors — 0.2% | ||||||||
Genuine Parts Co. | 57,668 | 8,326,106 | ||||||
LKQ Corp. | 391,944 | 19,405,147 | ||||||
Pool Corp. | 21,547 | 7,672,887 | ||||||
|
| |||||||
35,404,140 | ||||||||
Diversified Telecommunication Services — 1.5% | ||||||||
AT&T Inc. | 10,530,625 | 158,169,987 | ||||||
Verizon Communications, Inc. | 6,192,638 | 200,703,398 | ||||||
|
| |||||||
358,873,385 | ||||||||
Electric Utilities — 3.3% | ||||||||
Alliant Energy Corp. | 373,235 | 18,083,236 | ||||||
American Electric Power Co., Inc. | 758,865 | 57,081,825 | ||||||
Constellation Energy Corp. | 473,712 | 51,672,505 | ||||||
Duke Energy Corp. | 1,135,269 | 100,198,842 | ||||||
Edison International | 564,593 | 35,733,091 | ||||||
Entergy Corp. | 311,479 | 28,811,808 | ||||||
Evergy, Inc. | 337,393 | 17,105,825 | ||||||
Eversource Energy | 514,211 | 29,901,370 | ||||||
Exelon Corp. | 1,465,978 | 55,399,309 | ||||||
FirstEnergy Corp. | 758,186 | 25,914,797 | ||||||
NextEra Energy, Inc. | 2,980,973 | 170,779,943 | ||||||
NRG Energy, Inc. | 178,091 | 6,860,065 | ||||||
Pinnacle West Capital Corp. | 167,377 | 12,332,337 | ||||||
PPL Corp. | 1,087,266 | 25,615,987 | ||||||
Southern Co. (The) | 1,606,398 | 103,966,079 | ||||||
Xcel Energy, Inc. | 811,650 | 46,442,613 | ||||||
|
| |||||||
785,899,632 | ||||||||
Electrical Equipment — 1.2% | ||||||||
AMETEK, Inc.(b) | 170,142 | 25,140,182 | ||||||
Eaton Corp. PLC | 587,735 | 125,352,121 | ||||||
Emerson Electric Co. | 841,831 | 81,295,620 | ||||||
Generac Holdings, Inc.(a) | 92,316 | 10,058,751 | ||||||
Rockwell Automation, Inc. | 169,191 | 48,366,631 | ||||||
|
| |||||||
290,213,305 | ||||||||
Electronic Equipment, Instruments & Components — 0.8% | ||||||||
CDW Corp. | 73,005 | 14,729,489 | ||||||
Corning, Inc. | 1,134,515 | 34,568,672 | ||||||
Keysight Technologies, Inc.(a) | 120,957 | 16,003,821 | ||||||
TE Connectivity Ltd. | 462,439 | 57,125,090 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) |
| |||||||
Teledyne Technologies, Inc.(a)(b) | 69,342 | $ | 28,331,754 | |||||
Trimble, Inc.(a) | 366,840 | 19,758,002 | ||||||
Zebra Technologies Corp., Class A(a)(b) | 75,223 | 17,792,496 | ||||||
|
| |||||||
188,309,324 | ||||||||
Energy Equipment & Services — 0.7% | ||||||||
Baker Hughes Co., Class A | 1,487,241 | 52,529,352 | ||||||
Halliburton Co. | 1,323,577 | 53,604,869 | ||||||
Schlumberger NV | 983,915 | 57,362,244 | ||||||
|
| |||||||
163,496,465 | ||||||||
Entertainment — 2.5% | ||||||||
Activision Blizzard, Inc. | 432,060 | 40,453,778 | ||||||
Electronic Arts, Inc. | 116,759 | 14,057,784 | ||||||
Live Nation Entertainment, Inc.(a)(b) | 209,839 | 17,425,031 | ||||||
Netflix, Inc.(a) | 652,765 | 246,484,064 | ||||||
Take-Two Interactive Software, Inc.(a) | 232,313 | 32,614,422 | ||||||
Walt Disney Co. (The)(a) | 2,695,302 | 218,454,227 | ||||||
Warner Bros Discovery, Inc., Class A(a)(b) | 3,267,189 | 35,481,672 | ||||||
|
| |||||||
604,970,978 | ||||||||
Financial Services — 4.9% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 2,686,321 | 941,018,247 | ||||||
Fidelity National Information Services, Inc. | 872,204 | 48,206,715 | ||||||
Fiserv, Inc.(a) | 277,974 | 31,399,943 | ||||||
FleetCor Technologies, Inc.(a) | 51,518 | 13,154,606 | ||||||
Global Payments, Inc. | 382,977 | 44,191,716 | ||||||
PayPal Holdings, Inc.(a) | 1,617,431 | 94,555,016 | ||||||
|
| |||||||
1,172,526,243 | ||||||||
Food Products — 1.1% | ||||||||
Archer-Daniels-Midland Co. | 402,059 | 30,323,290 | ||||||
Bunge Ltd. | 130,126 | 14,086,139 | ||||||
Campbell Soup Co. | 120,202 | 4,937,898 | ||||||
Conagra Brands, Inc. | 703,770 | 19,297,373 | ||||||
General Mills, Inc. | 276,534 | 17,695,411 | ||||||
Hormel Foods Corp. | 118,180 | 4,494,385 | ||||||
J M Smucker Co. (The) | 151,123 | 18,574,528 | ||||||
Kellanova | 175,566 | 10,447,933 | ||||||
Kraft Heinz Co. (The) | 1,176,048 | 39,562,255 | ||||||
McCormick & Co., Inc., NVS | 181,687 | 13,742,805 | ||||||
Mondelez International, Inc., Class A | 921,805 | 63,973,267 | ||||||
Tyson Foods, Inc., Class A | 419,638 | 21,187,522 | ||||||
|
| |||||||
258,322,806 | ||||||||
Gas Utilities — 0.0% | ||||||||
Atmos Energy Corp. | 84,159 | 8,914,963 | ||||||
|
| |||||||
Ground Transportation — 0.9% | ||||||||
CSX Corp. | 1,536,790 | 47,256,292 | ||||||
Norfolk Southern Corp. | 334,398 | 65,852,998 | ||||||
Union Pacific Corp. | 448,871 | 91,403,602 | ||||||
|
| |||||||
204,512,892 | ||||||||
Health Care Equipment & Supplies — 4.0% | ||||||||
Abbott Laboratories | 1,226,985 | 118,833,497 | ||||||
Align Technology, Inc.(a) | 104,845 | 32,011,275 | ||||||
Baxter International, Inc. | 747,953 | 28,227,746 | ||||||
Becton Dickinson & Co. | 427,337 | 110,479,435 | ||||||
Boston Scientific Corp.(a)(b) | 1,013,710 | 53,523,888 | ||||||
Cooper Cos., Inc. (The) | 73,142 | 23,259,887 | ||||||
DENTSPLY SIRONA, Inc. | 311,216 | 10,631,139 | ||||||
Edwards Lifesciences Corp.(a)(b) | 895,473 | 62,038,369 | ||||||
GE HealthCare Technologies, Inc.(b) | 576,188 | 39,203,832 | ||||||
IDEXX Laboratories, Inc.(a) | 62,477 | 27,319,318 | ||||||
Intuitive Surgical, Inc.(a) | 263,952 | 77,150,530 |
SCHEDULES OF INVESTMENTS | 19 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) |
| |||||||
Medtronic PLC | 1,960,820 | $ | 153,649,855 | |||||
ResMed, Inc. | 100,040 | 14,792,915 | ||||||
STERIS PLC | 145,315 | 31,885,017 | ||||||
Stryker Corp. | 497,885 | 136,057,034 | ||||||
Teleflex, Inc. | 69,216 | 13,594,715 | ||||||
Zimmer Biomet Holdings, Inc. | 307,205 | 34,474,545 | ||||||
|
| |||||||
967,132,997 | ||||||||
Health Care Providers & Services — 2.1% | ||||||||
Cardinal Health, Inc. | 375,031 | 32,560,191 | ||||||
Cencora, Inc. | 245,566 | 44,194,513 | ||||||
Centene Corp.(a)(b) | 797,610 | 54,939,377 | ||||||
Cigna Group (The) | 222,352 | 63,608,237 | ||||||
CVS Health Corp. | 1,891,946 | 132,095,670 | ||||||
DaVita, Inc.(a)(b) | 79,135 | 7,480,632 | ||||||
HCA Healthcare, Inc. | 136,235 | 33,511,085 | ||||||
Henry Schein, Inc.(a)(b) | 193,241 | 14,348,144 | ||||||
Humana, Inc. | 65,614 | 31,922,523 | ||||||
Laboratory Corp. of America Holdings | 130,510 | 26,239,036 | ||||||
McKesson Corp. | 107,305 | 46,661,579 | ||||||
Quest Diagnostics, Inc. | 56,492 | 6,884,115 | ||||||
Universal Health Services, Inc., Class B | 91,970 | 11,563,388 | ||||||
|
| |||||||
506,008,490 | ||||||||
Health Care REITs — 0.4% | ||||||||
Healthpeak Properties, Inc. | 807,042 | 14,817,291 | ||||||
Ventas, Inc. | 591,159 | 24,905,529 | ||||||
Welltower, Inc. | 764,099 | 62,594,990 | ||||||
|
| |||||||
102,317,810 | ||||||||
Hotel & Resort REITs — 0.1% | ||||||||
Host Hotels & Resorts, Inc. | 1,053,127 | 16,923,751 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.8% | ||||||||
Airbnb, Inc., Class A(a)(b) | 376,821 | 51,703,609 | ||||||
Booking Holdings, Inc.(a) | 52,575 | 162,138,671 | ||||||
Caesars Entertainment, Inc.(a) | 316,003 | 14,646,739 | ||||||
Carnival Corp.(a)(b) | 1,489,358 | 20,433,992 | ||||||
Darden Restaurants, Inc. | 178,566 | 25,574,222 | ||||||
Domino’s Pizza, Inc. | 27,927 | 10,578,468 | ||||||
Expedia Group, Inc.(a)(b) | 202,026 | 20,822,820 | ||||||
Hilton Worldwide Holdings, Inc. | 199,910 | 30,022,484 | ||||||
Las Vegas Sands Corp. | 482,053 | 22,097,310 | ||||||
Marriott International, Inc., Class A | 180,652 | 35,508,957 | ||||||
McDonald’s Corp. | 407,924 | 107,463,499 | ||||||
MGM Resorts International | 415,461 | 15,272,346 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) | 620,974 | 10,233,652 | ||||||
Royal Caribbean Cruises Ltd.(a) | 346,619 | 31,937,475 | ||||||
Starbucks Corp. | 826,727 | 75,455,373 | ||||||
Wynn Resorts Ltd. | 143,334 | 13,245,495 | ||||||
Yum! Brands, Inc. | 149,281 | 18,651,168 | ||||||
|
| |||||||
665,786,280 | ||||||||
Household Durables — 0.7% | ||||||||
DR Horton, Inc. | 225,311 | 24,214,173 | ||||||
Garmin Ltd. | 225,697 | 23,743,324 | ||||||
Lennar Corp., Class A | 371,976 | 41,746,867 | ||||||
Mohawk Industries, Inc.(a) | 77,816 | 6,677,391 | ||||||
NVR, Inc.(a)(b) | 4,796 | 28,599,987 | ||||||
PulteGroup, Inc. | 322,080 | 23,850,024 | ||||||
Whirlpool Corp. | 80,907 | 10,817,266 | ||||||
|
| |||||||
159,649,032 | ||||||||
Household Products — 1.4% | ||||||||
Church & Dwight Co., Inc. | 362,415 | 33,208,086 | ||||||
Clorox Co. (The) | 100,212 | 13,133,785 |
Security | Shares | Value | ||||||
Household Products (continued) | ||||||||
Colgate-Palmolive Co. | 547,656 | $ | 38,943,818 | |||||
Kimberly-Clark Corp. | 258,728 | 31,267,279 | ||||||
Procter & Gamble Co. (The) | 1,562,562 | 227,915,293 | ||||||
|
| |||||||
344,468,261 | ||||||||
Independent Power and Renewable Electricity Producers — 0.0% | ||||||||
AES Corp. (The) | 408,722 | 6,212,574 | ||||||
|
| |||||||
Industrial Conglomerates — 1.8% | ||||||||
3M Co. | 813,096 | 76,122,047 | ||||||
General Electric Co. | 1,603,203 | 177,234,092 | ||||||
Honeywell International, Inc. | 978,028 | 180,680,893 | ||||||
|
| |||||||
434,037,032 | ||||||||
Industrial REITs — 0.6% | ||||||||
Prologis, Inc. | 1,360,868 | 152,702,998 | ||||||
|
| |||||||
Insurance — 2.6% | ||||||||
Aflac, Inc. | 796,310 | 61,116,792 | ||||||
Allstate Corp. (The) | 385,304 | 42,926,719 | ||||||
American International Group, Inc. | 1,048,644 | 63,547,826 | ||||||
Aon PLC, Class A | 101,426 | 32,884,338 | ||||||
Arthur J. Gallagher & Co. | 114,637 | 26,129,211 | ||||||
Assurant, Inc. | 78,764 | 11,308,935 | ||||||
Brown & Brown, Inc. | 140,951 | 9,844,018 | ||||||
Chubb Ltd. | 260,159 | 54,159,901 | ||||||
Cincinnati Financial Corp. | 231,052 | 23,634,309 | ||||||
Everest Group Ltd. | 26,542 | 9,864,865 | ||||||
Globe Life, Inc. | 37,682 | 4,097,164 | ||||||
Hartford Financial Services Group, Inc. (The) | 449,877 | 31,900,778 | ||||||
Loews Corp. | 273,683 | 17,326,871 | ||||||
Marsh & McLennan Cos., Inc. | 261,737 | 49,808,551 | ||||||
MetLife, Inc. | 930,505 | 58,538,070 | ||||||
Principal Financial Group, Inc. | 127,743 | 9,206,438 | ||||||
Prudential Financial, Inc. | 534,707 | 50,738,347 | ||||||
Travelers Cos., Inc. (The) | 155,705 | 25,428,184 | ||||||
Willis Towers Watson PLC | 154,401 | 32,263,633 | ||||||
|
| |||||||
614,724,950 | ||||||||
Interactive Media & Services — 4.2% | ||||||||
Match Group, Inc.(a)(b) | 411,736 | 16,129,758 | ||||||
Meta Platforms, Inc., Class A(a) | 3,273,911 | 982,860,821 | ||||||
|
| |||||||
998,990,579 | ||||||||
IT Services — 1.8% | ||||||||
Accenture PLC, Class A | 473,879 | 145,532,980 | ||||||
Akamai Technologies, Inc.(a)(b) | 224,513 | 23,919,615 | ||||||
Cognizant Technology Solutions Corp., Class A | 743,936 | 50,394,225 | ||||||
DXC Technology Co.(a) | 303,664 | 6,325,321 | ||||||
EPAM Systems, Inc.(a) | 27,637 | 7,066,504 | ||||||
International Business Machines Corp. | 1,341,931 | 188,272,919 | ||||||
VeriSign, Inc.(a) | 67,594 | 13,689,813 | ||||||
|
| |||||||
435,201,377 | ||||||||
Leisure Products — 0.1% | ||||||||
Hasbro, Inc. | 193,248 | 12,781,423 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.8% | ||||||||
Agilent Technologies, Inc. | 173,655 | 19,418,102 | ||||||
Bio-Rad Laboratories, Inc., Class A(a)(b) | 30,908 | 11,078,973 | ||||||
Bio-Techne Corp. | 121,567 | 8,275,066 | ||||||
Charles River Laboratories | 75,925 | 14,879,782 | ||||||
Illumina, Inc.(a)(b) | 232,916 | 31,974,708 | ||||||
IQVIA Holdings, Inc.(a)(b) | 139,927 | 27,530,637 | ||||||
Mettler-Toledo International, Inc.(a)(b) | 11,245 | 12,460,247 |
20 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Life Sciences Tools & Services (continued) |
| |||||||
Revvity, Inc. | 181,896 | $ | 20,135,887 | |||||
West Pharmaceutical Services, Inc. | 108,780 | 40,815,344 | ||||||
|
| |||||||
186,568,746 | ||||||||
Machinery — 2.4% | ||||||||
Caterpillar, Inc. | 300,580 | 82,058,340 | ||||||
Cummins, Inc. | 102,315 | 23,374,885 | ||||||
Dover Corp. | 206,037 | 28,744,222 | ||||||
Fortive Corp. | 518,313 | 38,438,092 | ||||||
IDEX Corp. | 48,328 | 10,053,191 | ||||||
Illinois Tool Works, Inc. | 198,616 | 45,743,251 | ||||||
Ingersoll Rand, Inc.(b) | 597,428 | 38,068,112 | ||||||
Nordson Corp. | 80,120 | 17,880,380 | ||||||
Otis Worldwide Corp. | 606,509 | 48,708,738 | ||||||
PACCAR, Inc. | 770,103 | 65,474,157 | ||||||
Parker-Hannifin Corp. | 188,983 | 73,612,658 | ||||||
Pentair PLC | 243,566 | 15,770,898 | ||||||
Snap-on, Inc. | 33,221 | 8,473,348 | ||||||
Stanley Black & Decker, Inc. | 225,913 | 18,881,809 | ||||||
Westinghouse Air Brake Technologies Corp. | 263,230 | 27,973,452 | ||||||
Xylem, Inc. | 354,233 | 32,245,830 | ||||||
|
| |||||||
575,501,363 | ||||||||
Media — 1.7% | ||||||||
Charter Communications, Inc., Class A(a)(b) | 149,919 | 65,937,375 | ||||||
Comcast Corp., Class A | 6,062,495 | 268,811,028 | ||||||
Fox Corp., Class A, NVS | 375,460 | 11,714,352 | ||||||
Fox Corp., Class B | 195,253 | 5,638,907 | ||||||
Interpublic Group of Cos., Inc. (The) | 564,855 | 16,188,744 | ||||||
News Corp., Class A, NVS | 558,037 | 11,194,222 | ||||||
News Corp., Class B | 171,001 | 3,568,791 | ||||||
Omnicom Group, Inc. | 289,698 | 21,576,707 | ||||||
Paramount Global, Class B, NVS | 713,693 | 9,206,640 | ||||||
|
| |||||||
413,836,766 | ||||||||
Metals & Mining — 0.2% | ||||||||
Newmont Corp. | 1,170,657 | 43,255,776 | ||||||
|
| |||||||
Multi-Utilities — 1.3% | ||||||||
Ameren Corp. | 387,036 | 28,961,904 | ||||||
CenterPoint Energy, Inc. | 930,888 | 24,994,343 | ||||||
CMS Energy Corp. | 429,497 | 22,810,586 | ||||||
Consolidated Edison, Inc. | 508,080 | 43,456,082 | ||||||
Dominion Energy, Inc. | 1,232,584 | 55,059,527 | ||||||
DTE Energy Co. | 303,702 | 30,151,535 | ||||||
NiSource, Inc. | 609,319 | 15,037,993 | ||||||
Public Service Enterprise Group, Inc. | 735,201 | 41,840,289 | ||||||
Sempra | 371,766 | 25,291,241 | ||||||
WEC Energy Group, Inc. | 222,846 | 17,950,245 | ||||||
|
| |||||||
305,553,745 | ||||||||
Office REITs — 0.2% | ||||||||
Alexandria Real Estate Equities, Inc. | 228,502 | 22,873,050 | ||||||
Boston Properties, Inc. | 211,452 | 12,577,165 | ||||||
|
| |||||||
35,450,215 | ||||||||
Oil, Gas & Consumable Fuels — 1.0% | ||||||||
Kinder Morgan, Inc. | 2,855,456 | 47,343,460 | ||||||
Marathon Petroleum Corp. | 306,269 | 46,350,750 | ||||||
Phillips 66 | 655,918 | 78,808,548 | ||||||
Valero Energy Corp. | 520,173 | 73,713,716 | ||||||
|
| |||||||
246,216,474 | ||||||||
Passenger Airlines — 0.4% | ||||||||
Alaska Air Group, Inc.(a) | 187,416 | 6,949,385 | ||||||
American Airlines Group, Inc.(a) | 965,643 | 12,369,887 |
Security | Shares | Value | ||||||
Passenger Airlines (continued) | ||||||||
Delta Air Lines, Inc. | 947,319 | $ | 35,050,803 | |||||
Southwest Airlines Co. | 874,708 | 23,678,345 | ||||||
United Airlines Holdings, Inc.(a)(b) | 484,266 | 20,484,452 | ||||||
|
| |||||||
98,532,872 | ||||||||
Personal Care Products — 0.2% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 341,551 | 49,371,197 | ||||||
|
| |||||||
Pharmaceuticals — 1.5% | ||||||||
Catalent, Inc.(a) | 265,192 | 12,074,192 | ||||||
Johnson & Johnson | 1,347,881 | 209,932,465 | ||||||
Organon & Co. | 375,444 | 6,517,708 | ||||||
Viatris, Inc. | 1,764,335 | 17,396,343 | ||||||
Zoetis, Inc., Class A | 678,056 | 117,968,183 | ||||||
|
| |||||||
363,888,891 | ||||||||
Professional Services — 0.6% | ||||||||
Broadridge Financial Solutions, Inc. | 90,557 | 16,214,231 | ||||||
Ceridian HCM Holding, Inc.(a)(b) | 229,463 | 15,569,065 | ||||||
Equifax, Inc. | 91,949 | 16,843,218 | ||||||
Jacobs Solutions, Inc. | 186,155 | 25,410,157 | ||||||
Leidos Holdings, Inc. | 69,819 | 6,434,519 | ||||||
Paychex, Inc. | 202,725 | 23,380,274 | ||||||
Robert Half, Inc.(b) | 158,049 | 11,581,831 | ||||||
Verisk Analytics, Inc. | 115,333 | 27,246,268 | ||||||
|
| |||||||
142,679,563 | ||||||||
Real Estate Management & Development — 0.1% | ||||||||
CBRE Group, Inc., Class A(a) | 455,700 | 33,658,002 | ||||||
|
| |||||||
Residential REITs — 0.7% | ||||||||
AvalonBay Communities, Inc. | 209,193 | 35,926,806 | ||||||
Camden Property Trust | 157,498 | 14,896,161 | ||||||
Equity Residential | 507,126 | 29,773,367 | ||||||
Essex Property Trust, Inc. | 94,298 | 19,999,663 | ||||||
Invitation Homes, Inc. | 845,250 | 26,785,973 | ||||||
Mid-America Apartment Communities, Inc. | 171,868 | 22,110,818 | ||||||
UDR, Inc. | 448,629 | 16,002,596 | ||||||
|
| |||||||
165,495,384 | ||||||||
Retail REITs — 0.6% | ||||||||
Federal Realty Investment Trust | 108,539 | 9,836,890 | ||||||
Kimco Realty Corp. | 909,123 | 15,991,473 | ||||||
Realty Income Corp. | 1,044,059 | 52,140,306 | ||||||
Regency Centers Corp. | 240,532 | 14,297,222 | ||||||
Simon Property Group, Inc. | 481,959 | 52,066,031 | ||||||
|
| |||||||
144,331,922 | ||||||||
Semiconductors & Semiconductor Equipment — 3.8% | ||||||||
Advanced Micro Devices, Inc.(a) | 1,094,762 | 112,563,429 | ||||||
Analog Devices, Inc. | 391,458 | 68,540,381 | ||||||
Broadcom, Inc. | 243,157 | 201,961,341 | ||||||
Intel Corp. | 6,169,011 | 219,308,341 | ||||||
Microchip Technology, Inc. | 410,288 | 32,022,979 | ||||||
Micron Technology, Inc. | 1,613,403 | 109,759,806 | ||||||
NXP Semiconductors NV | 155,421 | 31,071,766 | ||||||
Qorvo, Inc.(a) | 144,910 | 13,834,558 | ||||||
Skyworks Solutions, Inc. | 235,392 | 23,207,297 | ||||||
Teradyne, Inc. | 115,548 | 11,607,952 | ||||||
Texas Instruments, Inc. | 494,858 | 78,687,371 | ||||||
|
| |||||||
902,565,221 | ||||||||
Software — 9.5% | ||||||||
Adobe, Inc.(a) | 355,844 | 181,444,856 | ||||||
ANSYS, Inc.(a) | 127,845 | 38,040,280 | ||||||
Autodesk, Inc.(a)(b) | 141,626 | 29,303,836 | ||||||
Gen Digital, Inc. | 386,840 | 6,839,331 |
SCHEDULES OF INVESTMENTS | 21 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Software (continued) | ||||||||
Intuit, Inc. | 193,891 | $ | 99,066,667 | |||||
Microsoft Corp. | 4,596,563 | 1,451,364,767 | ||||||
Oracle Corp. | 950,762 | 100,704,711 | ||||||
Roper Technologies, Inc. | 157,188 | 76,123,005 | ||||||
Salesforce, Inc.(a) | 1,434,722 | 290,932,927 | ||||||
Tyler Technologies, Inc.(a)(b) | 32,777 | 12,656,511 | ||||||
|
| |||||||
2,286,476,891 | ||||||||
Specialized REITs — 1.5% | ||||||||
American Tower Corp. | 322,729 | 53,072,784 | ||||||
Crown Castle, Inc. | 638,818 | 58,790,421 | ||||||
Digital Realty Trust, Inc. | 445,897 | 53,962,455 | ||||||
Equinix, Inc. | 137,823 | 100,095,332 | ||||||
Extra Space Storage, Inc. | 155,889 | 18,952,985 | ||||||
Iron Mountain, Inc. | 160,439 | 9,538,099 | ||||||
Public Storage | 88,224 | 23,248,788 | ||||||
SBA Communications Corp., Class A | 69,948 | 14,001,491 | ||||||
VICI Properties, Inc. | 643,334 | 18,721,019 | ||||||
Weyerhaeuser Co. | 460,735 | 14,126,135 | ||||||
|
| |||||||
364,509,509 | ||||||||
Specialty Retail — 1.8% | ||||||||
Bath & Body Works, Inc. | 338,274 | 11,433,661 | ||||||
Best Buy Co., Inc. | 285,030 | 19,801,034 | ||||||
CarMax, Inc.(a)(b) | 233,090 | 16,486,456 | ||||||
Home Depot, Inc. (The) | 696,042 | 210,316,051 | ||||||
Lowe’s Cos., Inc. | 267,580 | 55,613,827 | ||||||
Ross Stores, Inc. | 501,793 | 56,677,519 | ||||||
TJX Cos., Inc. (The) | 609,040 | 54,131,475 | ||||||
|
| |||||||
424,460,023 | ||||||||
Technology Hardware, Storage & Peripherals — 0.5% | ||||||||
Hewlett Packard Enterprise Co. | 1,899,728 | 32,998,276 | ||||||
HP, Inc. | 1,277,653 | 32,835,682 | ||||||
NetApp, Inc. | 309,382 | 23,475,906 | ||||||
Seagate Technology Holdings PLC | 283,507 | 18,697,287 | ||||||
Western Digital Corp.(a) | 469,964 | 21,444,457 | ||||||
|
| |||||||
129,451,608 | ||||||||
Textiles, Apparel & Luxury Goods — 0.8% | ||||||||
NIKE, Inc., Class B | 1,804,559 | 172,551,932 | ||||||
Ralph Lauren Corp., Class A | 59,776 | 6,939,396 | ||||||
Tapestry, Inc. | 341,915 | 9,830,056 | ||||||
VF Corp. | 490,571 | 8,668,389 | ||||||
|
| |||||||
197,989,773 |
Security | Shares | Value | ||||||
| ||||||||
Tobacco — 0.6% | ||||||||
Altria Group, Inc. | 1,254,738 | $ | 52,761,733 | |||||
Philip Morris International, Inc. | 1,051,853 | 97,380,551 | ||||||
|
| |||||||
150,142,284 | ||||||||
Trading Companies & Distributors — 0.3% | ||||||||
Fastenal Co. | 429,866 | 23,487,878 | ||||||
United Rentals, Inc. | 100,582 | 44,715,740 | ||||||
|
| |||||||
68,203,618 | ||||||||
Water Utilities — 0.2% | ||||||||
American Water Works Co., Inc. | 286,751 | 35,508,376 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.1% | ||||||||
T-Mobile U.S., Inc.(a) | 243,723 | 34,133,406 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% |
| 23,941,649,975 | ||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 1.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 126,722,233 | 126,772,922 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 168,132,024 | 168,132,024 | ||||||
|
| |||||||
Total Short-Term Securities — 1.2% |
| 294,904,946 | ||||||
|
| |||||||
Total Investments — 101.0% |
| 24,236,554,921 | ||||||
Liabilities in Excess of Other Assets — (1.0)% |
| (238,326,196 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 23,998,228,725 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
22 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Value ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 210,104,994 | $ | — | $ | (83,345,144 | )(a) | $ | 9,739 | $ | 3,333 | $ | 126,772,922 | 126,722,233 | $ | 694,602 | (b) | $ | — | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 39,913,921 | 128,218,103 | (a) | — | — | — | 168,132,024 | 168,132,024 | 1,070,765 | — | ||||||||||||||||||||||||||||||
BlackRock, Inc. | 152,128,447 | 6,266,535 | (20,457,742 | ) | (1,051,273 | ) | (3,236,443 | ) | 133,649,524 | 206,731 | 2,220,535 | — | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | (1,041,534 | ) | $ | (3,233,110 | ) | $ | 428,554,470 | $ | 3,985,902 | $ | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | 228 | 12/15/23 | $ | 49,311 | $ | (2,043,062 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 2,043,062 | $ | — | $ | — | $ | — | $ | 2,043,062 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 8,324,454 | $ | — | $ | — | $ | — | $ | 8,324,454 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (5,213,991 | ) | $ | — | $ | — | $ | — | $ | (5,213,991 | ) |
SCHEDULES OF INVESTMENTS | 23 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P 500 Value ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||
Futures contracts | $56,858,544 | |
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 23,941,649,975 | $ | — | $ | — | $ | 23,941,649,975 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 294,904,946 | — | — | 294,904,946 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 24,236,554,921 | $ | — | $ | — | $ | 24,236,554,921 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (2,043,062 | ) | $ | — | $ | — | $ | (2,043,062 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
24 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.1% | ||||||||
AAR Corp.(a) | 418,997 | $ | 24,942,891 | |||||
Kaman Corp. | 355,775 | 6,990,979 | ||||||
Mercury Systems, Inc.(a) | 270,269 | 10,024,277 | ||||||
Moog, Inc., Class A | 141,162 | 15,945,660 | ||||||
National Presto Industries, Inc. | 65,759 | 4,764,897 | ||||||
Triumph Group, Inc.(a) | 966,997 | 7,407,197 | ||||||
|
| |||||||
70,075,901 | ||||||||
Air Freight & Logistics — 0.3% | ||||||||
Hub Group, Inc., Class A(a) | 217,797 | 17,105,776 | ||||||
|
| |||||||
Automobile Components — 1.7% | ||||||||
American Axle & Manufacturing Holdings, Inc.(a) | 1,480,750 | 10,750,245 | ||||||
Dana, Inc. | 1,619,286 | 23,754,926 | ||||||
Gentherm, Inc.(a)(b) | 162,539 | 8,819,366 | ||||||
LCI Industries | 159,609 | 18,741,289 | ||||||
Patrick Industries, Inc. | 263,191 | 19,755,116 | ||||||
Phinia, Inc.(b) | 592,324 | 15,868,360 | ||||||
Standard Motor Products, Inc. | 235,777 | 7,926,823 | ||||||
|
| |||||||
105,616,125 | ||||||||
Automobiles — 0.2% | ||||||||
Winnebago Industries, Inc. | 205,322 | 12,206,393 | ||||||
|
| |||||||
Banks — 7.5% | ||||||||
Ameris Bancorp | 320,935 | 12,320,695 | ||||||
Atlantic Union Bankshares Corp. | 578,714 | 16,655,389 | ||||||
Axos Financial, Inc.(a)(b) | 305,275 | 11,557,712 | ||||||
Banc of California, Inc. | 667,068 | 8,258,302 | ||||||
Bank of Hawaii Corp. | 245,161 | 12,182,050 | ||||||
BankUnited, Inc. | 938,029 | 21,293,258 | ||||||
Berkshire Hills Bancorp, Inc. | 224,289 | 4,496,994 | ||||||
Brookline Bancorp, Inc. | 1,115,715 | 10,164,164 | ||||||
Capitol Federal Financial, Inc. | 1,602,128 | 7,642,151 | ||||||
Cathay General Bancorp | 318,911 | 11,085,346 | ||||||
Central Pacific Financial Corp. | 306,136 | 5,106,348 | ||||||
Community Bank System, Inc. | 292,809 | 12,359,468 | ||||||
Customers Bancorp, Inc.(a) | 173,020 | 5,960,539 | ||||||
Eagle Bancorp, Inc. | 378,652 | 8,122,085 | ||||||
FB Financial Corp. | 215,253 | 6,104,575 | ||||||
First Bancorp/Southern Pines NC | 210,291 | 5,917,589 | ||||||
First Commonwealth Financial Corp. | 588,506 | 7,185,658 | ||||||
First Financial Bancorp | 538,740 | 10,559,304 | ||||||
First Hawaiian, Inc. | 771,455 | 13,924,763 | ||||||
Fulton Financial Corp. | 922,812 | 11,175,253 | ||||||
Hilltop Holdings, Inc. | 582,460 | 16,518,566 | ||||||
Hope Bancorp, Inc. | 1,525,028 | 13,496,498 | ||||||
Independent Bank Corp. | 266,940 | 13,104,085 | ||||||
Independent Bank Group, Inc. | 452,770 | 17,907,054 | ||||||
National Bank Holdings Corp., Class A | 157,255 | 4,679,909 | ||||||
Northfield Bancorp, Inc. | 209,340 | 1,978,263 | ||||||
Northwest Bancshares, Inc. | 772,438 | 7,902,041 | ||||||
Pacific Premier Bancorp, Inc. | 1,208,869 | 26,304,989 | ||||||
PacWest Bancorp(b) | 1,491,539 | 11,798,074 | ||||||
Pathward Financial, Inc. | 89,914 | 4,144,136 | ||||||
Provident Financial Services, Inc. | 956,232 | 14,620,787 | ||||||
Renasant Corp. | 707,628 | 18,532,777 | ||||||
S&T Bancorp, Inc. | 151,737 | 4,109,038 | ||||||
Seacoast Banking Corp. of Florida | 492,665 | 10,818,923 | ||||||
Simmons First National Corp., Class A | 1,591,581 | 26,993,214 | ||||||
Southside Bancshares, Inc. | 155,730 | 4,469,451 | ||||||
Tompkins Financial Corp. | 52,061 | 2,550,468 | ||||||
Triumph Financial, Inc.(a)(b) | 103,770 | 6,723,258 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
TrustCo Bank Corp. | 84,007 | $ | 2,292,551 | |||||
Trustmark Corp. | 241,570 | 5,249,316 | ||||||
United Community Banks, Inc. | 528,105 | 13,419,148 | ||||||
Veritex Holdings, Inc. | 354,773 | 6,368,175 | ||||||
Washington Federal, Inc. | 386,494 | 9,901,976 | ||||||
WSFS Financial Corp. | 769,647 | 28,092,116 | ||||||
|
| |||||||
474,046,456 | ||||||||
Beverages — 0.1% | ||||||||
National Beverage Corp.(a) | 94,998 | 4,466,806 | ||||||
|
| |||||||
Biotechnology — 0.5% | ||||||||
Avid Bioservices, Inc.(a)(b) | 247,352 | 2,335,003 | ||||||
Ironwood Pharmaceuticals, Inc., Class A(a)(b) | 639,730 | 6,160,600 | ||||||
Myriad Genetics, Inc.(a)(b) | 1,032,085 | 16,554,644 | ||||||
Vericel Corp.(a)(b) | 258,741 | 8,672,998 | ||||||
|
| |||||||
33,723,245 | ||||||||
Building Products — 2.3% | ||||||||
American Woodmark Corp.(a)(b) | 206,348 | 15,601,972 | ||||||
Apogee Enterprises, Inc. | 119,440 | 5,623,235 | ||||||
AZZ, Inc. | 314,743 | 14,345,986 | ||||||
Gibraltar Industries, Inc.(a) | 383,506 | 25,890,490 | ||||||
Hayward Holdings, Inc.(a) | 1,584,996 | 22,348,444 | ||||||
Insteel Industries, Inc. | 133,480 | 4,332,761 | ||||||
Masterbrand, Inc.(a) | 1,609,493 | 19,555,340 | ||||||
Quanex Building Products Corp.(b) | 178,008 | 5,014,485 | ||||||
Resideo Technologies, Inc.(a) | 1,861,222 | 29,407,308 | ||||||
|
| |||||||
142,120,021 | ||||||||
Capital Markets — 0.8% | ||||||||
Artisan Partners Asset Management, Inc., Class A . | 269,482 | 10,084,016 | ||||||
B Riley Financial, Inc. | 105,600 | 4,328,544 | ||||||
Brightsphere Investment Group, Inc. | 197,671 | 3,832,841 | ||||||
Donnelley Financial Solutions, Inc.(a) | 157,347 | 8,855,489 | ||||||
Moelis & Co., Class A | 270,412 | 12,203,694 | ||||||
Virtus Investment Partners, Inc. | 41,983 | 8,480,146 | ||||||
WisdomTree, Inc. | 647,486 | 4,532,402 | ||||||
|
| |||||||
52,317,132 | ||||||||
Chemicals — 1.7% | ||||||||
AdvanSix, Inc. | 342,166 | 10,634,519 | ||||||
HB Fuller Co. | 244,422 | 16,769,794 | ||||||
Koppers Holdings, Inc. | 263,996 | 10,441,042 | ||||||
Mativ Holdings, Inc. | 687,561 | 9,804,620 | ||||||
Minerals Technologies, Inc. | 410,230 | 22,464,195 | ||||||
Sensient Technologies Corp. | 532,577 | 31,145,103 | ||||||
Stepan Co. | 93,686 | 7,023,639 | ||||||
|
| |||||||
108,282,912 | ||||||||
Commercial Services & Supplies — 3.4% | ||||||||
ABM Industries, Inc. | 833,796 | 33,360,178 | ||||||
Brady Corp., Class A, NVS | 202,152 | 11,102,188 | ||||||
CoreCivic, Inc.(a) | 1,430,354 | 16,091,483 | ||||||
Deluxe Corp. | 551,773 | 10,422,992 | ||||||
Enviri Corp.(a) | 1,005,342 | 7,258,569 | ||||||
GEO Group, Inc. (The)(a) | 1,587,367 | 12,984,662 | ||||||
Healthcare Services Group, Inc. | 932,090 | 9,721,699 | ||||||
HNI Corp. | 586,768 | 20,319,776 | ||||||
Interface, Inc., Class A | 732,461 | 7,185,442 | ||||||
Liquidity Services, Inc.(a) | 128,240 | 2,259,589 | ||||||
Matthews International Corp., Class A | 383,861 | 14,936,032 | ||||||
MillerKnoll, Inc. | 954,240 | 23,331,168 | ||||||
OPENLANE, Inc.(a)(b) | 1,379,722 | 20,585,452 | ||||||
Pitney Bowes, Inc. | 1,941,853 | 5,864,396 |
SCHEDULES OF INVESTMENTS | 25 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Commercial Services & Supplies (continued) | ||||||||
UniFirst Corp. | 77,926 | $ | 12,702,717 | |||||
Viad Corp.(a) | 263,237 | 6,896,809 | ||||||
|
| |||||||
215,023,152 | ||||||||
Communications Equipment — 0.5% | ||||||||
ADTRAN Holdings, Inc. | 279,131 | 2,297,248 | ||||||
Viasat, Inc.(a)(b) | 938,140 | 17,318,065 | ||||||
Viavi Solutions, Inc.(a) | 1,347,681 | 12,317,804 | ||||||
|
| |||||||
31,933,117 | ||||||||
Construction & Engineering — 1.0% | ||||||||
Arcosa, Inc. | 208,901 | 15,019,982 | ||||||
Dycom Industries, Inc.(a)(b) | 118,712 | 10,565,368 | ||||||
Granite Construction, Inc. | 553,628 | 21,048,936 | ||||||
MYR Group, Inc.(a) | 105,250 | 14,183,490 | ||||||
|
| |||||||
60,817,776 | ||||||||
Consumer Finance — 1.7% | ||||||||
Bread Financial Holdings, Inc. | 497,094 | 17,000,615 | ||||||
Encore Capital Group, Inc.(a)(b) | 296,611 | 14,166,142 | ||||||
Enova International, Inc.(a) | 388,082 | 19,741,731 | ||||||
EZCORP, Inc., Class A, NVS(a)(b) | 654,921 | 5,403,098 | ||||||
Navient Corp. | 1,103,645 | 19,004,767 | ||||||
PRA Group, Inc.(a) | 495,820 | 9,524,702 | ||||||
PROG Holdings, Inc.(a) | 576,192 | 19,135,336 | ||||||
World Acceptance Corp.(a)(b) | 42,881 | 5,448,460 | ||||||
|
| |||||||
109,424,851 | ||||||||
Consumer Staples Distribution & Retail — 0.9% | ||||||||
Andersons, Inc. (The) | 221,884 | 11,429,245 | ||||||
Chefs’ Warehouse, Inc. (The)(a)(b) | 170,636 | 3,614,071 | ||||||
PriceSmart, Inc. | 324,849 | 24,178,511 | ||||||
SpartanNash Co. | 436,265 | 9,597,830 | ||||||
United Natural Foods, Inc.(a) | 740,138 | 10,465,551 | ||||||
|
| |||||||
59,285,208 | ||||||||
Containers & Packaging — 0.3% | ||||||||
O-I Glass, Inc.(a)(b) | 1,055,479 | 17,658,164 | ||||||
|
| |||||||
Diversified Consumer Services — 0.5% | ||||||||
Frontdoor, Inc.(a) | 485,373 | 14,847,560 | ||||||
Mister Car Wash, Inc.(a)(b) | 564,839 | 3,112,263 | ||||||
Perdoceo Education Corp. | 305,257 | 5,219,894 | ||||||
Strategic Education, Inc. | 119,575 | 8,998,019 | ||||||
|
| |||||||
32,177,736 | ||||||||
Diversified REITs — 1.5% | ||||||||
Alexander & Baldwin, Inc. | 914,435 | 15,298,498 | ||||||
American Assets Trust, Inc. | 611,282 | 11,889,435 | ||||||
Armada Hoffler Properties, Inc. | 302,496 | 3,097,559 | ||||||
Essential Properties Realty Trust, Inc. | 1,966,553 | 42,536,541 | ||||||
Global Net Lease, Inc. | 2,449,717 | 23,541,780 | ||||||
|
| |||||||
96,363,813 | ||||||||
Diversified Telecommunication Services — 0.6% | ||||||||
Cogent Communications Holdings, Inc. | 224,467 | 13,894,507 | ||||||
Consolidated Communications Holdings, Inc.(a)(b) | 949,299 | 3,246,603 | ||||||
Lumen Technologies, Inc.(a) | 12,706,048 | 18,042,588 | ||||||
|
| |||||||
35,183,698 | ||||||||
Electric Utilities — 0.2% | ||||||||
Otter Tail Corp. | 204,895 | 15,555,628 | ||||||
|
| |||||||
Electrical Equipment — 0.2% | ||||||||
Powell Industries, Inc. | 115,364 | 9,563,676 | ||||||
SunPower Corp.(a)(b) | 480,442 | 2,964,327 | ||||||
|
| |||||||
12,528,003 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components — 3.7% | ||||||||
Arlo Technologies, Inc.(a)(b) | 592,225 | $ | 6,099,917 | |||||
Benchmark Electronics, Inc. | 451,254 | 10,947,422 | ||||||
ePlus, Inc.(a) | 176,221 | 11,193,558 | ||||||
Insight Enterprises, Inc.(a)(b) | 381,150 | 55,457,325 | ||||||
Itron, Inc.(a) | 573,041 | 34,714,824 | ||||||
Knowles Corp.(a)(b) | 1,148,824 | 17,014,083 | ||||||
Methode Electronics, Inc. | 217,062 | 4,959,867 | ||||||
OSI Systems, Inc.(a) | 95,396 | 11,260,544 | ||||||
PC Connection, Inc. | 142,449 | 7,603,928 | ||||||
Rogers Corp.(a) | 211,196 | 27,765,938 | ||||||
Sanmina Corp.(a) | 389,539 | 21,144,177 | ||||||
ScanSource, Inc.(a) | 314,664 | 9,537,466 | ||||||
TTM Technologies, Inc.(a) | 1,309,152 | 16,861,878 | ||||||
|
| |||||||
234,560,927 | ||||||||
Energy Equipment & Services — 2.6% | ||||||||
Archrock, Inc. | 1,736,013 | 21,873,764 | ||||||
Bristow Group, Inc.(a) | 302,412 | 8,518,946 | ||||||
Core Laboratories, Inc.(b) | 305,978 | 7,346,532 | ||||||
Dril-Quip, Inc.(a)(b) | 202,188 | 5,695,636 | ||||||
Helix Energy Solutions Group, Inc.(a) | 1,787,051 | 19,961,360 | ||||||
Helmerich & Payne, Inc. | 526,392 | 22,192,687 | ||||||
Liberty Energy, Inc., Class A | 1,368,192 | 25,338,916 | ||||||
Nabors Industries Ltd.(a) | 36,040 | 4,437,965 | ||||||
Oceaneering International, Inc.(a) | 356,358 | 9,165,528 | ||||||
Oil States International, Inc.(a) | 805,222 | 6,739,708 | ||||||
Patterson-UTI Energy, Inc. | 1,292,914 | 17,893,930 | ||||||
ProPetro Holding Corp.(a)(b) | 1,092,730 | 11,615,720 | ||||||
U.S. Silica Holdings, Inc.(a) | 407,591 | 5,722,577 | ||||||
|
| |||||||
166,503,269 | ||||||||
Entertainment — 0.6% | ||||||||
Cinemark Holdings, Inc.(a)(b) | 1,364,586 | 25,040,153 | ||||||
Madison Square Garden Sports Corp., Class A | 50,369 | 8,880,055 | ||||||
Marcus Corp. (The)(b) | 309,046 | 4,790,213 | ||||||
|
| |||||||
38,710,421 | ||||||||
Financial Services — 1.7% | ||||||||
EVERTEC, Inc. | 286,148 | 10,638,983 | ||||||
Jackson Financial, Inc., Class A | 120,636 | 4,610,708 | ||||||
NMI Holdings, Inc., Class A(a) | 509,391 | 13,799,402 | ||||||
Payoneer Global, Inc.(a) | 1,649,018 | 10,091,990 | ||||||
Radian Group, Inc. | 1,346,598 | 33,813,076 | ||||||
Walker & Dunlop, Inc. | 420,326 | 31,205,002 | ||||||
|
| |||||||
104,159,161 | ||||||||
Food Products — 0.9% | ||||||||
B&G Foods, Inc. | 913,678 | 9,036,275 | ||||||
Calavo Growers, Inc. | 223,842 | 5,647,534 | ||||||
Fresh Del Monte Produce, Inc. | 423,730 | 10,949,183 | ||||||
Hain Celestial Group, Inc. (The)(a)(b) | 1,125,285 | 11,669,206 | ||||||
John B Sanfilippo & Son, Inc. | 44,445 | 4,391,166 | ||||||
TreeHouse Foods, Inc.(a)(b) | 342,562 | 14,928,852 | ||||||
|
| |||||||
56,622,216 | ||||||||
Gas Utilities — 0.2% | ||||||||
Chesapeake Utilities Corp. | 74,123 | 7,245,523 | ||||||
Northwest Natural Holding Co. | 163,561 | 6,241,488 | ||||||
|
| |||||||
13,487,011 | ||||||||
Ground Transportation — 1.0% | ||||||||
ArcBest Corp. | 302,844 | 30,784,093 | ||||||
Heartland Express, Inc.(b) | 204,057 | 2,997,597 | ||||||
RXO, Inc.(a)(b) | 1,474,603 | 29,093,917 | ||||||
|
| |||||||
62,875,607 |
26 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies — 2.5% | ||||||||
Artivion, Inc.(a) | 491,750 | $ | 7,454,930 | |||||
Avanos Medical, Inc.(a)(b) | 589,918 | 11,928,142 | ||||||
CONMED Corp.(b) | 197,620 | 19,929,977 | ||||||
Embecta Corp. | 382,222 | 5,752,441 | ||||||
Glaukos Corp.(a) | 202,310 | 15,223,828 | ||||||
Integer Holdings Corp.(a) | 419,860 | 32,929,620 | ||||||
LeMaitre Vascular, Inc. | 78,136 | 4,256,849 | ||||||
Omnicell, Inc.(a)(b) | 569,915 | 25,668,972 | ||||||
OraSure Technologies, Inc.(a)(b) | 923,182 | 5,474,469 | ||||||
Orthofix Medical, Inc.(a) | 462,291 | 5,945,062 | ||||||
STAAR Surgical Co.(a) | 195,816 | 7,867,887 | ||||||
Tandem Diabetes Care, Inc.(a)(b) | 328,065 | 6,813,910 | ||||||
Varex Imaging Corp.(a)(b) | 507,255 | 9,531,321 | ||||||
|
| |||||||
158,777,408 | ||||||||
Health Care Providers & Services — 2.9% | ||||||||
Agiliti, Inc.(a)(b) | 244,087 | 1,584,125 | ||||||
Apollo Medical Holdings, Inc.(a)(b) | 530,131 | 16,354,541 | ||||||
Community Health Systems, Inc.(a)(b) | 1,595,690 | 4,627,501 | ||||||
CorVel Corp.(a)(b) | 40,053 | 7,876,422 | ||||||
Enhabit, Inc.(a)(b) | 632,036 | 7,110,405 | ||||||
Fulgent Genetics, Inc.(a) | 142,368 | 3,806,920 | ||||||
ModivCare, Inc.(a)(b) | 154,932 | 4,881,907 | ||||||
NeoGenomics, Inc.(a)(b) | 1,608,169 | 19,780,479 | ||||||
Owens & Minor, Inc.(a) | 964,234 | 15,582,021 | ||||||
Pediatrix Medical Group, Inc.(a)(b) | 1,041,226 | 13,233,983 | ||||||
Premier, Inc., Class A | 1,110,757 | 23,881,276 | ||||||
RadNet, Inc.(a)(b) | 760,331 | 21,433,731 | ||||||
Select Medical Holdings Corp. | 1,314,203 | 33,209,910 | ||||||
U.S. Physical Therapy, Inc. | 73,691 | 6,759,675 | ||||||
|
| |||||||
180,122,896 | ||||||||
Health Care REITs — 0.3% | ||||||||
CareTrust REIT, Inc. | 474,702 | 9,731,391 | ||||||
Community Healthcare Trust, Inc. | 125,675 | 3,732,547 | ||||||
LTC Properties, Inc. | 182,321 | 5,857,974 | ||||||
Universal Health Realty Income Trust | 56,612 | 2,288,823 | ||||||
|
| |||||||
21,610,735 | ||||||||
Health Care Technology — 0.4% | ||||||||
Certara, Inc.(a)(b) | 567,448 | 8,250,694 | ||||||
HealthStream, Inc. | 111,011 | 2,395,617 | ||||||
Schrodinger, Inc.(a)(b) | 384,259 | 10,863,002 | ||||||
Simulations Plus, Inc. | 66,920 | 2,790,564 | ||||||
|
| |||||||
24,299,877 | ||||||||
Hotel & Resort REITs — 2.2% | ||||||||
Apple Hospitality REIT, Inc. | 1,743,438 | 26,744,339 | ||||||
Chatham Lodging Trust | 614,961 | 5,885,177 | ||||||
DiamondRock Hospitality Co. | 2,642,428 | 21,218,697 | ||||||
Pebblebrook Hotel Trust(b) | 1,518,974 | 20,642,857 | ||||||
Service Properties Trust | 2,084,982 | 16,033,511 | ||||||
Summit Hotel Properties, Inc. | 1,356,929 | 7,870,188 | ||||||
Sunstone Hotel Investors, Inc. | 2,611,646 | 24,418,890 | ||||||
Xenia Hotels & Resorts, Inc. | 1,351,600 | 15,921,848 | ||||||
|
| |||||||
138,735,507 | ||||||||
Hotels, Restaurants & Leisure — 2.3% | �� | |||||||
BJ’s Restaurants, Inc.(a)(b) | 297,191 | 6,972,101 | ||||||
Bloomin’ Brands, Inc. | 460,167 | 11,315,507 | ||||||
Brinker International, Inc.(a)(b) | 558,292 | 17,636,444 | ||||||
Cheesecake Factory, Inc. (The) | 594,645 | 18,017,744 | ||||||
Chuy’s Holdings, Inc.(a)(b) | 105,548 | 3,755,398 | ||||||
Cracker Barrel Old Country Store, Inc. | 279,234 | 18,764,525 | ||||||
Dave & Buster’s Entertainment, Inc.(a)(b) | 190,435 | 7,059,425 |
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
Dine Brands Global, Inc. | 79,128 | $ | 3,912,880 | |||||
Golden Entertainment, Inc.(b) | 107,396 | 3,670,795 | ||||||
Papa John’s International, Inc. | 226,874 | 15,477,344 | ||||||
Sabre Corp.(a) | 2,593,161 | 11,643,293 | ||||||
Shake Shack, Inc., Class A(a) | 222,104 | 12,897,579 | ||||||
Six Flags Entertainment Corp.(a) | 513,791 | 12,079,226 | ||||||
|
| |||||||
143,202,261 | ||||||||
Household Durables — 4.9% | ||||||||
Century Communities, Inc. | 359,226 | 23,989,112 | ||||||
Installed Building Products, Inc. | 101,065 | 12,622,008 | ||||||
iRobot Corp.(a) | 347,498 | 13,170,174 | ||||||
La-Z-Boy, Inc. | 545,540 | 16,846,275 | ||||||
LGI Homes, Inc.(a)(b) | 258,221 | 25,690,407 | ||||||
M/I Homes, Inc.(a) | 350,417 | 29,449,045 | ||||||
MDC Holdings, Inc. | 751,745 | 30,994,446 | ||||||
Meritage Homes Corp. | 463,437 | 56,720,055 | ||||||
Newell Brands, Inc. | 4,803,457 | 43,375,217 | ||||||
Sonos, Inc.(a)(b) | 1,616,741 | 20,872,126 | ||||||
Tri Pointe Homes, Inc.(a) | 1,247,857 | 34,128,889 | ||||||
|
| |||||||
307,857,754 | ||||||||
Household Products — 0.8% | ||||||||
Central Garden & Pet Co.(a)(b) | 62,505 | 2,758,970 | ||||||
Central Garden & Pet Co., Class A, NVS(a) | 269,208 | 10,792,549 | ||||||
Energizer Holdings, Inc. | 838,019 | 26,850,129 | ||||||
WD-40 Co.(b) | 59,742 | 12,141,964 | ||||||
|
| |||||||
52,543,612 | ||||||||
Industrial REITs — 0.5% | ||||||||
LXP Industrial Trust | 3,688,410 | 32,826,849 | ||||||
|
| |||||||
Insurance — 3.7% | ||||||||
Ambac Financial Group, Inc.(a) | 571,276 | 6,889,588 | ||||||
American Equity Investment Life Holding Co.(a) | 374,261 | 20,075,360 | ||||||
AMERISAFE, Inc. | 108,566 | 5,435,900 | ||||||
Assured Guaranty Ltd. | 343,689 | 20,800,058 | ||||||
Employers Holdings, Inc. | 161,703 | 6,460,035 | ||||||
Genworth Financial, Inc., Class A(a) | 5,837,388 | 34,207,094 | ||||||
Goosehead Insurance, Inc., Class A(a)(b) | 129,097 | 9,621,599 | ||||||
HCI Group, Inc. | 75,345 | 4,090,480 | ||||||
Horace Mann Educators Corp. | 516,578 | 15,177,062 | ||||||
James River Group Holdings Ltd. | 476,471 | 7,313,830 | ||||||
Lincoln National Corp. | 1,789,713 | 44,188,014 | ||||||
Mercury General Corp. | 335,902 | 9,415,333 | ||||||
ProAssurance Corp. | 655,894 | 12,389,838 | ||||||
Safety Insurance Group, Inc. | 80,534 | 5,491,613 | ||||||
SiriusPoint Ltd.(a) | 1,113,182 | 11,321,061 | ||||||
Stewart Information Services Corp. | 344,707 | 15,098,166 | ||||||
United Fire Group, Inc. | 266,545 | 5,264,264 | ||||||
|
| |||||||
233,239,295 | ||||||||
Interactive Media & Services — 0.9% | ||||||||
Cargurus, Inc., Class A(a) | 548,396 | 9,607,898 | ||||||
QuinStreet, Inc.(a)(b) | 313,902 | 2,815,701 | ||||||
Shutterstock, Inc. | 158,236 | 6,020,880 | ||||||
TripAdvisor, Inc.(a) | 1,357,117 | 22,501,000 | ||||||
Yelp, Inc.(a) | 363,621 | 15,122,997 | ||||||
|
| |||||||
56,068,476 | ||||||||
IT Services — 0.2% | ||||||||
Perficient, Inc.(a) | 189,384 | 10,957,758 | ||||||
|
|
SCHEDULES OF INVESTMENTS | 27 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Leisure Products — 0.3% | ||||||||
Sturm Ruger & Co., Inc. | 86,713 | $ | 4,519,482 | |||||
Vista Outdoor, Inc.(a)(b) | 401,694 | 13,304,105 | ||||||
|
| |||||||
17,823,587 | ||||||||
Life Sciences Tools & Services — 0.6% | ||||||||
Cytek Biosciences, Inc.(a)(b) | 698,890 | 3,857,873 | ||||||
Fortrea Holdings, Inc.(a)(b) | 1,116,837 | 31,930,370 | ||||||
Mesa Laboratories, Inc. | 24,723 | 2,597,645 | ||||||
|
| |||||||
38,385,888 | ||||||||
Machinery — 3.6% | ||||||||
3D Systems Corp.(a)(b) | 1,682,529 | 8,261,217 | ||||||
Alamo Group, Inc. | 35,113 | 6,069,633 | ||||||
Astec Industries, Inc. | 286,301 | 13,487,640 | ||||||
Barnes Group, Inc. | 638,173 | 21,678,737 | ||||||
CIRCOR International, Inc.(a) | 257,611 | 14,361,813 | ||||||
Enerpac Tool Group Corp., Class A | 240,243 | 6,349,623 | ||||||
ESCO Technologies, Inc.(b) | 103,790 | 10,839,828 | ||||||
Greenbrier Cos., Inc. (The) | 389,168 | 15,566,720 | ||||||
John Bean Technologies Corp.(b) | 401,330 | 42,195,836 | ||||||
Kennametal, Inc. | 1,004,788 | 24,999,125 | ||||||
Proto Labs, Inc.(a) | 329,510 | 8,699,064 | ||||||
SPX Technologies, Inc.(a) | 218,378 | 17,775,969 | ||||||
Standex International Corp. | 47,797 | 6,963,545 | ||||||
Tennant Co. | 234,246 | 17,369,341 | ||||||
Trinity Industries, Inc. | 421,993 | 10,275,530 | ||||||
Wabash National Corp. | 248,133 | 5,240,569 | ||||||
|
| |||||||
230,134,190 | ||||||||
Media — 1.1% | ||||||||
AMC Networks, Inc., Class A(a) | 384,093 | 4,524,615 | ||||||
DISH Network Corp., Class A(a)(b) | 3,128,103 | 18,330,684 | ||||||
EW Scripps Co. (The), Class A, NVS(a)(b) | 747,446 | 4,096,004 | ||||||
John Wiley & Sons, Inc., Class A | 536,417 | 19,938,620 | ||||||
Scholastic Corp., NVS | 351,930 | 13,422,610 | ||||||
Thryv Holdings, Inc.(a)(b) | 383,853 | 7,204,921 | ||||||
|
| |||||||
67,517,454 | ||||||||
Metals & Mining — 2.1% | ||||||||
ATI, Inc.(a)(b) | 615,928 | 25,345,437 | ||||||
Carpenter Technology Corp. | 611,991 | 41,131,915 | ||||||
Century Aluminum Co.(a)(b) | 658,076 | 4,731,567 | ||||||
Compass Minerals International, Inc. | 424,437 | 11,863,014 | ||||||
Haynes International, Inc. | 53,444 | 2,486,215 | ||||||
Materion Corp. | 112,260 | 11,440,417 | ||||||
Olympic Steel, Inc. | 123,419 | 6,937,382 | ||||||
SunCoke Energy, Inc. | 1,059,149 | 10,750,362 | ||||||
TimkenSteel Corp.(a)(b) | 277,510 | 6,027,517 | ||||||
Warrior Met Coal, Inc. | 288,511 | 14,737,142 | ||||||
|
| |||||||
135,450,968 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 3.5% | ||||||||
Apollo Commercial Real Estate Finance, Inc. | 1,639,170 | 16,604,792 | ||||||
Arbor Realty Trust, Inc.(b) | 2,035,222 | 30,894,670 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 2,172,059 | 47,242,283 | ||||||
Ellington Financial, Inc. | 859,513 | 10,718,127 | ||||||
Franklin BSP Realty Trust, Inc. | 1,035,477 | 13,709,716 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 810,249 | 17,177,279 | ||||||
Invesco Mortgage Capital, Inc. | 305,931 | 3,062,369 | ||||||
KKR Real Estate Finance Trust, Inc. | 733,347 | 8,704,829 | ||||||
New York Mortgage Trust, Inc. | 1,146,372 | 9,732,698 | ||||||
PennyMac Mortgage Investment Trust | 1,092,432 | 13,546,157 | ||||||
Ready Capital Corp. | 1,991,649 | 20,135,571 |
Security | Shares | Value | ||||||
Mortgage Real Estate Investment Trusts (REITs) (continued) | ||||||||
Redwood Trust, Inc. | 1,435,371 | $ | 10,234,195 | |||||
Two Harbors Investment Corp. | 1,211,806 | 16,044,312 | ||||||
|
| |||||||
217,806,998 | ||||||||
Multi-Utilities — 0.5% | ||||||||
Avista Corp. | 964,627 | 31,224,976 | ||||||
|
| |||||||
Office REITs — 2.2% | ||||||||
Brandywine Realty Trust | 2,175,346 | 9,876,071 | ||||||
Douglas Emmett, Inc. | 2,100,468 | 26,801,972 | ||||||
Easterly Government Properties, Inc. | 1,180,422 | 13,492,223 | ||||||
Highwoods Properties, Inc. | 1,332,086 | 27,454,292 | ||||||
Hudson Pacific Properties, Inc. | 1,594,925 | 10,606,251 | ||||||
JBG SMITH Properties | 1,186,538 | 17,157,340 | ||||||
SL Green Realty Corp. | 811,635 | 30,273,986 | ||||||
|
| |||||||
135,662,135 | �� | |||||||
Oil, Gas & Consumable Fuels — 2.0% | ||||||||
California Resources Corp. | 580,166 | 32,495,098 | ||||||
Callon Petroleum Co.(a)(b) | 352,249 | 13,779,981 | ||||||
CVR Energy, Inc. | 165,078 | 5,617,604 | ||||||
Green Plains, Inc.(a)(b) | 750,373 | 22,586,227 | ||||||
Par Pacific Holdings, Inc.(a) | 708,191 | 25,452,384 | ||||||
Talos Energy, Inc.(a)(b) | 584,125 | 9,603,015 | ||||||
World Kinect Corp. | 758,806 | 17,020,019 | ||||||
|
| |||||||
126,554,328 | ||||||||
Paper & Forest Products — 0.3% | ||||||||
Clearwater Paper Corp.(a) | 210,674 | 7,636,932 | ||||||
Mercer International, Inc. | 313,038 | 2,685,866 | ||||||
Sylvamo Corp. | 193,158 | 8,487,363 | ||||||
|
| |||||||
18,810,161 | ||||||||
Passenger Airlines — 1.0% | ||||||||
Allegiant Travel Co. | 190,538 | 14,644,750 | ||||||
Hawaiian Holdings, Inc.(a)(b) | 656,755 | 4,157,259 | ||||||
JetBlue Airways Corp.(a)(b) | 4,200,743 | 19,323,418 | ||||||
SkyWest, Inc.(a) | 530,220 | 22,237,427 | ||||||
|
| |||||||
60,362,854 | ||||||||
Personal Care Products — 0.5% | ||||||||
Edgewell Personal Care Co. | 332,577 | 12,292,046 | ||||||
Nu Skin Enterprises, Inc., Class A | 628,424 | 13,328,873 | ||||||
USANA Health Sciences, Inc.(a) | 141,355 | 8,284,817 | ||||||
|
| |||||||
33,905,736 | ||||||||
Pharmaceuticals — 0.4% | ||||||||
ANI Pharmaceuticals, Inc.(a) | 96,758 | 5,617,769 | ||||||
Ligand Pharmaceuticals, Inc.(a)(b) | 94,437 | 5,658,665 | ||||||
Phibro Animal Health Corp., Class A | 258,702 | 3,303,625 | ||||||
Prestige Consumer Healthcare, Inc.(a) | 186,962 | 10,692,357 | ||||||
|
| |||||||
25,272,416 | ||||||||
Professional Services — 0.8% | ||||||||
Forrester Research, Inc.(a) | 144,617 | 4,179,431 | ||||||
Heidrick & Struggles International, Inc. | 252,013 | 6,305,365 | ||||||
Kelly Services, Inc., Class A, NVS | 404,166 | 7,351,780 | ||||||
Korn Ferry | 351,196 | 16,660,738 | ||||||
Resources Connection, Inc. | 402,738 | 6,004,824 | ||||||
TrueBlue, Inc.(a) | 390,063 | 5,722,224 | ||||||
TTEC Holdings, Inc. | 120,637 | 3,163,102 | ||||||
|
| |||||||
49,387,464 | ||||||||
Real Estate Management & Development — 0.8% | ||||||||
Anywhere Real Estate, Inc.(a) | 1,388,113 | 8,925,566 | ||||||
Cushman & Wakefield PLC(a)(b) | 2,118,861 | 16,145,721 |
28 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
eXp World Holdings, Inc.(b) | 705,428 | $ | 11,456,151 | |||||
Kennedy-Wilson Holdings, Inc. | 954,238 | 14,065,468 | ||||||
|
| |||||||
50,592,906 | ||||||||
Residential REITs — 0.6% | ||||||||
Centerspace | 188,077 | 11,333,520 | ||||||
Elme Communities | 1,106,432 | 15,091,732 | ||||||
NexPoint Residential Trust, Inc. | 136,600 | 4,395,788 | ||||||
Veris Residential, Inc. | 444,553 | 7,335,125 | ||||||
|
| |||||||
38,156,165 | ||||||||
Retail REITs — 2.7% | ||||||||
Acadia Realty Trust | 1,199,881 | 17,218,292 | ||||||
Getty Realty Corp. | 208,259 | 5,775,022 | ||||||
Macerich Co. (The) | 2,713,384 | 29,603,019 | ||||||
Phillips Edison & Co., Inc. | 843,527 | 28,291,896 | ||||||
Retail Opportunity Investments Corp. | 1,588,328 | 19,663,501 | ||||||
RPT Realty | 1,009,839 | 10,663,900 | ||||||
Saul Centers, Inc. | 70,714 | 2,494,083 | ||||||
SITE Centers Corp. | 2,268,662 | 27,972,603 | ||||||
Tanger Factory Outlet Centers, Inc. | 597,780 | 13,509,828 | ||||||
Urban Edge Properties | 725,143 | 11,065,682 | ||||||
Whitestone REIT | 591,929 | 5,700,276 | ||||||
|
| |||||||
171,958,102 | ||||||||
Semiconductors & Semiconductor Equipment — 1.7% | ||||||||
CEVA, Inc.(a) | 117,243 | 2,273,342 | ||||||
Cohu, Inc.(a) | 204,022 | 7,026,517 | ||||||
FormFactor, Inc.(a)(b) | 978,884 | 34,202,207 | ||||||
Ichor Holdings Ltd.(a)(b) | 368,017 | 11,393,806 | ||||||
Semtech Corp.(a)(b) | 806,215 | 20,760,036 | ||||||
SiTime Corp.(a)(b) | 99,515 | 11,369,589 | ||||||
SMART Global Holdings, Inc.(a)(b) | 630,234 | 15,346,198 | ||||||
Ultra Clean Holdings, Inc.(a)(b) | 253,546 | 7,522,710 | ||||||
|
| |||||||
109,894,405 | ||||||||
Software — 0.9% | ||||||||
Adeia, Inc. | 1,348,139 | 14,398,125 | ||||||
Cerence, Inc.(a)(b) | 507,166 | 10,330,971 | ||||||
Consensus Cloud Solutions, Inc.(a) | 72,967 | 1,837,309 | ||||||
Digital Turbine, Inc.(a)(b) | 414,259 | 2,506,267 | ||||||
Ebix, Inc. | 310,509 | 3,067,829 | ||||||
LiveRamp Holdings, Inc.(a) | 376,800 | 10,866,912 | ||||||
N-able, Inc.(a)(b) | 282,302 | 3,641,696 | ||||||
OneSpan, Inc.(a)(b) | 233,418 | 2,509,243 | ||||||
Xperi, Inc.(a) | 544,239 | 5,366,197 | ||||||
|
| |||||||
54,524,549 | ||||||||
Specialized REITs — 0.7% | ||||||||
Four Corners Property Trust, Inc. | 377,493 | 8,376,570 | ||||||
Outfront Media, Inc. | 1,830,778 | 18,490,858 | ||||||
Safehold, Inc.(a) | 562,712 | 10,016,273 | ||||||
Uniti Group, Inc. | 1,656,721 | 7,819,723 | ||||||
|
| |||||||
44,703,424 | ||||||||
Specialty Retail — 7.7% | ||||||||
Abercrombie & Fitch Co., Class A(a)(b) | 631,088 | 35,574,431 | ||||||
Academy Sports & Outdoors, Inc.(b) | 510,785 | 24,144,807 | ||||||
Advance Auto Parts, Inc. | 749,314 | 41,909,132 | ||||||
American Eagle Outfitters, Inc. | 2,339,608 | 38,860,889 | ||||||
America’s Car-Mart, Inc.(a)(b) | 75,256 | 6,847,543 | ||||||
Asbury Automotive Group, Inc.(a)(b) | 142,646 | 32,818,565 | ||||||
Boot Barn Holdings, Inc.(a)(b) | 147,188 | 11,950,194 | ||||||
Buckle, Inc. (The) | 117,391 | 3,919,686 | ||||||
Caleres, Inc. | 429,040 | 12,339,190 | ||||||
Chico’s FAS, Inc.(a)(b) | 1,556,113 | 11,639,725 |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
Designer Brands, Inc., Class A | 621,417 | $ | 7,867,139 | |||||
Foot Locker, Inc. | 1,030,035 | 17,871,107 | ||||||
Group 1 Automotive, Inc. | 177,118 | 47,593,378 | ||||||
Guess?, Inc. | 344,150 | 7,447,406 | ||||||
Haverty Furniture Cos., Inc. | 83,719 | 2,409,433 | ||||||
Hibbett, Inc. | 76,206 | 3,620,547 | ||||||
Leslie’s, Inc.(a)(b) | 819,174 | 4,636,525 | ||||||
MarineMax, Inc.(a)(b) | 251,621 | 8,258,201 | ||||||
Monro, Inc. | 395,188 | 10,974,371 | ||||||
National Vision Holdings, Inc.(a) | 413,584 | 6,691,789 | ||||||
ODP Corp. (The)(a)(b) | 426,864 | 19,699,774 | ||||||
Sally Beauty Holdings, Inc.(a)(b) | 1,355,774 | 11,361,386 | ||||||
Shoe Carnival, Inc. | 226,645 | 5,446,279 | ||||||
Signet Jewelers Ltd.(b) | 572,398 | 41,103,900 | ||||||
Sleep Number Corp.(a)(b) | 265,866 | 6,537,645 | ||||||
Sonic Automotive, Inc., Class A | 200,025 | 9,553,194 | ||||||
Upbound Group, Inc. | 578,605 | 17,039,917 | ||||||
Urban Outfitters, Inc.(a)(b) | 712,781 | 23,300,811 | ||||||
Victoria’s Secret & Co.(a)(b) | 972,214 | 16,216,530 | ||||||
|
| |||||||
487,633,494 | ||||||||
Technology Hardware, Storage & Peripherals — 0.5% | ||||||||
Avid Technology, Inc.(a)(b) | 174,520 | 4,689,352 | ||||||
Corsair Gaming, Inc.(a)(b) | 241,270 | 3,505,653 | ||||||
Xerox Holdings Corp. | 1,426,001 | 22,373,956 | ||||||
|
| |||||||
30,568,961 | ||||||||
Textiles, Apparel & Luxury Goods — 1.7% | ||||||||
G-III Apparel Group Ltd.(a)(b) | 510,802 | 12,729,186 | ||||||
Hanesbrands, Inc.(b) | 4,409,050 | 17,459,838 | ||||||
Kontoor Brands, Inc. | 629,643 | 27,647,624 | ||||||
Movado Group, Inc. | 196,215 | 5,366,480 | ||||||
Oxford Industries, Inc. | 55,726 | 5,356,941 | ||||||
Steven Madden Ltd. | 892,412 | 28,351,929 | ||||||
Wolverine World Wide, Inc. | 1,003,834 | 8,090,902 | ||||||
|
| |||||||
105,002,900 | ||||||||
Tobacco — 0.4% | ||||||||
Universal Corp. | 310,030 | 14,636,516 | ||||||
Vector Group Ltd. | 932,509 | 9,921,896 | ||||||
|
| |||||||
24,558,412 | ||||||||
Trading Companies & Distributors — 1.3% | ||||||||
DXP Enterprises, Inc.(a) | 172,688 | 6,033,719 | ||||||
GMS, Inc.(a) | 513,972 | 32,878,789 | ||||||
NOW, Inc.(a) | 1,344,087 | 15,954,313 | ||||||
Veritiv Corp. | 170,816 | 28,850,822 | ||||||
|
| |||||||
83,717,643 | ||||||||
Water Utilities — 0.5% | ||||||||
American States Water Co. | 144,218 | 11,347,072 | ||||||
California Water Service Group | 276,900 | 13,100,139 | ||||||
Middlesex Water Co. | 80,341 | 5,322,592 | ||||||
|
| |||||||
29,769,803 | ||||||||
Wireless Telecommunication Services — 0.6% | ||||||||
Gogo, Inc.(a)(b) | 275,015 | 3,280,929 | ||||||
Shenandoah Telecommunications Co. | 633,597 | 13,058,434 | ||||||
Telephone & Data Systems, Inc. | 1,234,139 | 22,597,085 | ||||||
|
| |||||||
38,936,448 | ||||||||
|
| |||||||
Total Long-Term Investments — 98.3% |
| 6,201,389,320 | ||||||
|
|
SCHEDULES OF INVESTMENTS | 29 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Short-Term Securities | ||||||||
Money Market Funds — 9.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 431,104,260 | $ | 431,276,702 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 145,219,528 | 145,219,528 | ||||||
|
| |||||||
Total Short-Term Securities — 9.2% | ||||||||
(Cost: $576,289,121) | 576,496,230 | |||||||
|
| |||||||
Total Investments — 107.5% | ||||||||
(Cost: $7,407,425,674) | 6,777,885,550 | |||||||
Liabilities in Excess of Other Assets — (7.5)% |
| (471,744,531 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 6,306,141,019 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 417,296,861 | $ | 13,927,521 | (a) | $ | — | $ | (24,835 | ) | $ | 77,155 | $ | 431,276,702 | 431,104,260 | $ | 1,133,117 | (b) | $ | — | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 198,053,688 | — | (52,834,160 | )(a) | — | — | 145,219,528 | 145,219,528 | 3,099,790 | — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
$ | (24,835 | ) | $ | 77,155 | $ | 576,496,230 | $ | 4,232,907 | $ | — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Russell 2000 E-Mini Index | 260 | 12/15/23 | $ | 23,382 | $ | (476,139 | ) | |||||||||
|
|
30 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF |
OTC Total Return Swaps
| ||||||||||||||||||||||||
Reference Entity | Payment Frequency | Counterparty(a) | Termination Date | Net Notional | Accrued Unrealized Appreciation (Depreciation) | Net Value of Reference Entity | Gross Notional Amount Net Asset Percentage | |||||||||||||||||
| ||||||||||||||||||||||||
Equity Securities Long/Short | Monthly | Goldman Sachs Bank USA(b) | 08/19/26 | $ | (26,386,538 | ) | $ | (1,406,113 | )(c) | $ | 25,028,636 | 0.4 | % | |||||||||||
Monthly | HSBC Bank PLC(d) | 02/10/28 | (25,757,636 | ) | (494,013 | )(e) | 25,356,279 | 0.4 | ||||||||||||||||
Monthly | JPMorgan Chase Bank NA(f) | 02/08/24 | (27,086,086 | ) | (1,067,624 | )(g) | 26,105,374 | 0.4 | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | (2,967,750 | ) | $ | 76,490,289 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
(a) The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. (c) Amount includes $(48,211) of net dividends, payable for referenced securities purchased and financing fees. (e) Amount includes $(92,656) of net dividends, payable for referenced securities purchased and financing fees. (g) Amount includes $(86,912) of net dividends, payable for referenced securities purchased and financing fees.
The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest: |
|
(b) | (d) | (f) | ||||
Range: | 0-75 basis points | 40 basis points | 40 basis points | |||
Benchmarks: | USD - 1D Overnight Fed Funds Effective Rate | USD - 1D Overnight Bank Funding Rate | USD - 1D Overnight Bank Funding Rate | |||
(FEDL01) | (OBFR01) | (OBFR01) |
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 19, 2026.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long | ||||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Atlantic Union Bankshares Corp. | 1,979 | $ | 56,956 | 0.2 | % | |||||||||||
Berkshire Hills Bancorp, Inc. | 26 | 521 | 0.0 | |||||||||||||
Cathay General Bancorp | 129,118 | 4,488,142 | 17.9 | |||||||||||||
Northwest Bancshares, Inc. | 15 | 153 | 0.0 | |||||||||||||
TrustCo Bank Corp. | 571 | 15,582 | 0.1 | |||||||||||||
United Community Banks, Inc. | 1,409 | 35,803 | 0.2 | |||||||||||||
Washington Federal, Inc. | 1,295 | 33,178 | 0.1 | |||||||||||||
|
|
|
| |||||||||||||
4,630,335 | ||||||||||||||||
Capital Markets | ||||||||||||||||
Moelis & Co., Class A | 157,569 | 7,111,089 | 28.4 | |||||||||||||
WisdomTree, Inc. | 8,140 | 56,980 | 0.2 | |||||||||||||
|
|
|
| |||||||||||||
7,168,069 | ||||||||||||||||
Commercial Services & Supplies | ||||||||||||||||
Pitney Bowes, Inc. | 2,851 | 8,610 | 0.0 | |||||||||||||
|
|
|
| |||||||||||||
Consumer Finance | ||||||||||||||||
Bread Financial Holdings, Inc. | 135,999 | 4,651,166 | 18.6 | |||||||||||||
Green Dot Corp., Class A | 24,813 | 345,645 | 1.4 | |||||||||||||
|
|
|
| |||||||||||||
4,996,811 | ||||||||||||||||
Financial Services | ||||||||||||||||
Jackson Financial, Inc., Class A | 55,252 | 2,111,731 | 8.4 | |||||||||||||
Payoneer Global, Inc. | 207,022 | 1,266,975 | 5.1 | |||||||||||||
|
|
|
| |||||||||||||
3,378,706 |
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Insurance | ||||||||||||||||
Horace Mann Educators Corp. | 1,749 | $ | 51,386 | 0.2 | % | |||||||||||
James River Group Holdings Ltd. | 149 | 2,287 | 0.0 | |||||||||||||
|
|
|
| |||||||||||||
53,673 | ||||||||||||||||
Mortgage Real Estate Investment Trusts (REITs) | ||||||||||||||||
Arbor Realty Trust, Inc. | 315,707 | 4,792,432 | 19.2 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — | ||||||||||||||||
Goldman Sachs Bank USA | $ | 25,028,636 | ||||||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 10, 2028.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long | ||||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Ameris Bancorp | 14 | $ | 538 | 0.0 | % | |||||||||||
Central Pacific Financial Corp. | 31,835 | 531,008 | 2.1 | |||||||||||||
Community Bank System, Inc. | 1,386 | 58,503 | 0.2 | |||||||||||||
First Bancorp | 2,223 | 62,555 | 0.3 | |||||||||||||
First Commonwealth Financial Corp. | 5,034 | 61,465 | 0.2 | |||||||||||||
Fulton Financial Corp. | 131,217 | 1,589,038 | 6.3 | |||||||||||||
Hope Bancorp, Inc. | 5,431 | 48,064 | 0.2 | |||||||||||||
Provident Financial Services, Inc. | 4,034 | 61,680 | 0.2 | |||||||||||||
S&T Bancorp, Inc. | 2,300 | 62,284 | 0.3 | |||||||||||||
Southside Bancshares, Inc. | 2,168 | 62,222 | 0.2 | |||||||||||||
TrustCo Bank Corp. | 571 | 15,583 | 0.1 |
SCHEDULES OF INVESTMENTS | 31 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF
|
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Banks (continued) | ||||||||||||||||
Trustmark Corp. | 2,929 | $ | 63,647 | 0.3 | % | |||||||||||
Veritex Holdings, Inc. | 3,395 | 60,940 | 0.2 | |||||||||||||
|
|
|
| |||||||||||||
2,677,527 | ||||||||||||||||
Capital Markets | ||||||||||||||||
Artisan Partners Asset Management, Inc., Class A | 3,615 | 135,273 | 0.5 | |||||||||||||
|
|
|
| |||||||||||||
Consumer Finance | ||||||||||||||||
Green Dot Corp., Class A | 216,917 | 3,021,654 | 11.9 | |||||||||||||
|
|
|
| |||||||||||||
Financial Services | ||||||||||||||||
Jackson Financial, Inc., Class A | 274,394 | 10,487,339 | 41.4 | |||||||||||||
Radian Group, Inc. | 16,314 | 409,644 | 1.6 | |||||||||||||
|
|
|
| |||||||||||||
10,896,983 | ||||||||||||||||
Insurance | ||||||||||||||||
Lincoln National Corp. | 348,639 | 8,607,897 | 33.9 | |||||||||||||
|
|
|
| |||||||||||||
Office REITs | ||||||||||||||||
Douglas Emmett, Inc. | 1,328 | 16,945 | 0.1 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — HSBC Bank PLC | $ | 25,356,279 | ||||||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 8, 2024.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long | ||||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Banc of California, Inc. | 3,616 | $ | 44,766 | 0.2 | % | |||||||||||
Veritex Holdings, Inc. | 997 | 17,896 | 0.0 | |||||||||||||
|
|
|
| |||||||||||||
62,662 |
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Capital Markets | ||||||||||||||||
Artisan Partners Asset Management, Inc., Class A | 158,436 | $ | 5,928,675 | 22.7 | % | |||||||||||
|
|
|
| |||||||||||||
Consumer Finance | ||||||||||||||||
Green Dot Corp., Class A | 323,625 | 4,508,096 | 17.3 | |||||||||||||
|
|
|
| |||||||||||||
Financial Services | ||||||||||||||||
Radian Group, Inc. | 621,503 | 15,605,941 | 59.8 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — JPMorgan Chase Bank NA | $ | 26,105,374 | ||||||||||||||
|
|
Balances Reported in the Statements of Assets and Liabilities for OTC Swaps
Description |
Swap Premiums Paid | Swap Premiums Received | Unrealized Appreciation | Unrealized Depreciation | ||||||||||
OTC Swaps | $ | — | $ | — | $ | — | $ (2,967,750) |
32 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 476,139 | $ | — | $ | — | $ | — | $ | 476,139 | ||||||||||||||
Swaps — OTC | ||||||||||||||||||||||||||||
Unrealized depreciation on OTC swaps; Swap premiums received | — | — | 2,967,750 | — | — | — | 2,967,750 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 3,443,889 | $ | — | $ | — | $ | — | $ | 3,443,889 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 1,712,626 | $ | — | $ | ��� | $ | — | $ | 1,712,626 | ||||||||||||||
Swaps | — | — | (1,472,381 | ) | — | — | — | (1,472,381 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 240,245 | $ | — | $ | — | $ | — | $ | 240,245 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (1,831,487 | ) | $ | — | $ | — | $ | — | $ | (1,831,487 | ) | ||||||||||||
Swaps | — | — | 3,508,306 | — | — | — | 3,508,306 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 1,676,819 | $ | — | $ | — | $ | — | $ | 1,676,819 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $23,684,210 | |||
Total return swaps | ||||
Average notional amount | $122,167,769 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments – Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||||||
Derivative Financial Instruments | ||||||||||||
Futures contracts | $ | — | $ | 136,500 | ||||||||
Swaps — OTC(a) | — | 2,967,750 | ||||||||||
|
|
|
| |||||||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | $ | — | $ | 3,104,250 | ||||||||
|
|
|
| |||||||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | (136,500 | ) | |||||||||
|
|
|
| |||||||||
Total derivative assets and liabilities subject to an MNA | $ | — | $ | 2,967,750 | ||||||||
|
|
|
|
(a) | Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statements of Assets and Liabilities. |
SCHEDULES OF INVESTMENTS | 33 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® S&P Small-Cap 600 Value ETF |
The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||||||||||
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Non- Cash Collateral Pledged(b) | Cash Collateral Pledged(b) | Net Amount of Derivative Liabilities(c) | |||||||||||||||
| ||||||||||||||||||||
Goldman Sachs Bank USA | $ | 1,406,113 | $ | — | $ | — | $ | (1,370,000 | ) | $ | 36,113 | |||||||||
HSBC Bank PLC | 494,013 | — | — | (494,013 | ) | — | ||||||||||||||
JPMorgan Chase Bank N.A. | 1,067,624 | — | — | (1,067,624 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 2,967,750 | $ | — | $ | — | $ | (2,931,637 | ) | $ | 36,113 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 6,201,389,320 | $ | — | $ | — | $ | 6,201,389,320 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 576,496,230 | — | — | 576,496,230 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 6,777,885,550 | $ | — | $ | — | $ | 6,777,885,550 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (476,139 | ) | $ | (2,967,750 | ) | $ | — | $ | (3,443,889 | ) | |||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
34 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares S&P 100 ETF | iShares S&P 500 Growth ETF | iShares S&P 500 Value ETF | iShares S&P Small-Cap 600 Value ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at value — unaffiliated(a)(b) | $ | 8,362,723,537 | $ | 33,728,591,438 | $ | 23,808,000,451 | $ | 6,201,389,320 | ||||||||
Investments, at value — affiliated(c) | 94,425,627 | 298,384,497 | 428,554,470 | 576,496,230 | ||||||||||||
Cash | 153 | 538 | 159,788 | 470,714 | ||||||||||||
Cash pledged: | ||||||||||||||||
Collateral — OTC derivatives | — | — | — | 7,150,000 | ||||||||||||
Futures contracts | 1,157,640 | 2,974,340 | 2,837,360 | 1,791,000 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 373,184 | 8,506,817 | 10,499,690 | 24,820,515 | ||||||||||||
Securities lending income — affiliated | 31,966 | 44,285 | 19,998 | 137,283 | ||||||||||||
Swaps | — | — | — | 993 | ||||||||||||
Dividends — unaffiliated | 4,043,357 | 18,284,429 | 20,008,537 | 11,153,774 | ||||||||||||
Dividends — affiliated | 94,439 | 281,445 | 221,041 | 452,646 | ||||||||||||
Due from broker | 81 | — | — | 417,020 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 8,462,849,984 | 34,057,067,789 | 24,270,301,335 | 6,824,279,495 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned | 15,721,307 | 144,944,538 | 126,631,440 | 431,203,495 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 373,184 | 8,506,817 | 10,499,689 | 41,531,505 | ||||||||||||
Swaps | — | — | — | 4,354,134 | ||||||||||||
Capital shares redeemed | 22,454 | — | — | — | ||||||||||||
Income dividend distributions | 30,978,822 | 110,002,344 | 131,124,937 | 36,978,433 | ||||||||||||
Investment advisory fees | 1,417,553 | 5,159,220 | 3,679,744 | 966,659 | ||||||||||||
Variation margin on futures contracts | 55,890 | 143,400 | 136,800 | 136,500 | ||||||||||||
Unrealized depreciation on OTC swaps | — | — | — | 2,967,750 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 48,569,210 | 268,756,319 | 272,072,610 | 518,138,476 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Commitments and contingent liabilities | ||||||||||||||||
NET ASSETS | $ | 8,414,280,774 | $ | 33,788,311,470 | $ | 23,998,228,725 | $ | 6,306,141,019 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 7,373,849,803 | $ | 27,535,209,957 | $ | 24,811,825,345 | $ | 8,227,993,469 | ||||||||
Accumulated earnings (loss) | 1,040,430,971 | 6,253,101,513 | (813,596,620 | ) | (1,921,852,450 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 8,414,280,774 | $ | 33,788,311,470 | $ | 23,998,228,725 | $ | 6,306,141,019 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSET VALUE | ||||||||||||||||
Shares outstanding | 41,950,000 | 493,800,000 | 156,100,000 | 70,700,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 200.58 | $ | 68.43 | $ | 153.74 | $ | 89.20 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Investments, at cost — unaffiliated | $ | 7,077,464,442 | $ | 25,078,370,854 | $ | 23,215,045,322 | $ | 6,831,136,553 | ||||||||
(b) Securities loaned, at value | $ | 15,250,319 | $ | 142,477,449 | $ | 123,380,222 | $ | 418,587,514 | ||||||||
(c) Investments, at cost — affiliated | $ | 92,859,520 | $ | 298,334,664 | $ | 444,210,539 | $ | 576,289,121 |
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
Statements of Operations (unaudited)
Six Months Ended September 30, 2023
iShares S&P 100 ETF | iShares S&P 500 Growth ETF | iShares S&P 500 Value ETF | iShares S&P Small-Cap 600 Value ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — unaffiliated | $ | 62,368,662 | $ | 207,773,755 | $ | 242,203,145 | $ | 72,911,597 | ||||||||
Dividends — affiliated | 1,017,878 | 1,284,199 | 3,291,300 | 3,099,790 | ||||||||||||
Securities lending income — affiliated — net | 11,979 | 1,195,928 | 694,602 | 1,133,117 | ||||||||||||
Foreign taxes withheld | — | (78,507 | ) | (47,956 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 63,398,519 | 210,175,375 | 246,141,091 | 77,144,504 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory | 8,209,107 | 29,529,187 | 22,431,369 | 6,064,963 | ||||||||||||
Interest expense | 2,557 | 14,260 | — | 11,649 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 8,211,664 | 29,543,447 | 22,431,369 | 6,076,612 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 55,186,855 | 180,631,928 | 223,709,722 | 71,067,892 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — unaffiliated | (24,611,967 | ) | (30,389,301 | ) | (100,546,151 | ) | (405,705,881 | ) | ||||||||
Investments — affiliated | (669,282 | ) | 20,983 | (3,107,870 | ) | (24,835 | ) | |||||||||
Futures contracts | 2,351,967 | 6,943,310 | 8,324,454 | 1,712,626 | ||||||||||||
In-kind redemptions — unaffiliated(a) | 168,584,769 | 821,952,972 | 339,707,206 | 32,777,227 | ||||||||||||
In-kind redemptions — affiliated(a) | 608,181 | — | 2,066,336 | — | ||||||||||||
Swaps | — | — | — | (1,472,381 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
146,263,668 | 798,527,964 | 246,443,975 | (372,713,244 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — unaffiliated | 401,243,026 | 1,246,678,644 | 76,415,380 | 40,707,530 | ||||||||||||
Investments — affiliated | (908,478 | ) | 25,111 | (3,233,110 | ) | 77,155 | ||||||||||
Futures contracts | (1,809,626 | ) | (4,810,946 | ) | (5,213,991 | ) | (1,831,487 | ) | ||||||||
Swaps | — | — | — | 3,508,306 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
398,524,922 | 1,241,892,809 | 67,968,279 | 42,461,504 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 544,788,590 | 2,040,420,773 | 314,412,254 | (330,251,740 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 599,975,445 | $ | 2,221,052,701 | $ | 538,121,976 | $ | (259,183,848 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
36 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Changes in Net Assets
iShares S&P 100 ETF | iShares S&P 500 Growth ETF | |||||||||||||||
|
|
|
| |||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 55,186,855 | $ | 113,224,910 | $ | 180,631,928 | $ | 280,085,567 | ||||||||
Net realized gain | 146,263,668 | 407,479,441 | 798,527,964 | 191,710,832 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 398,524,922 | (1,345,332,448 | ) | 1,241,892,809 | (5,994,083,405 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 599,975,445 | (824,628,097 | ) | 2,221,052,701 | (5,522,287,006 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (55,469,491 | ) | (113,384,492 | ) | (179,363,147 | ) | (273,353,269 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 321,747,280 | (291,408,168 | ) | 1,582,530,431 | (798,680,236 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 866,253,234 | (1,229,420,757 | ) | 3,624,219,985 | (6,594,320,511 | ) | ||||||||||
Beginning of period | 7,548,027,540 | 8,777,448,297 | 30,164,091,485 | 36,758,411,996 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 8,414,280,774 | $ | 7,548,027,540 | $ | 33,788,311,470 | $ | 30,164,091,485 | ||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 37 |
Statements of Changes in Net Assets (continued)
iShares S&P 500 Value ETF | iShares S&P Small-Cap 600 Value ETF | |||||||||||||||
|
|
|
| |||||||||||||
Six Months 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 223,709,722 | $ | 503,287,391 | $ | 71,067,892 | $ | 126,569,524 | ||||||||
Net realized gain (loss) | 246,443,975 | 2,360,039,333 | (372,713,244 | ) | 41,006,441 | |||||||||||
Net change in unrealized appreciation (depreciation) | 67,968,279 | (3,132,333,186 | ) | 42,461,504 | (885,835,581 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 538,121,976 | (269,006,462 | ) | (259,183,848 | ) | (718,259,616 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (216,687,425 | ) | (505,414,298 | ) | (65,368,033 | ) | (106,591,690 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | (799,481,074 | ) | (635,658,997 | ) | (352,655,152 | ) | (741,070,327 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | ||||||||||||||||
Total decrease in net assets | (478,046,523 | ) | (1,410,079,757 | ) | (677,207,033 | ) | (1,565,921,633 | ) | ||||||||
Beginning of period | 24,476,275,248 | 25,886,355,005 | 6,983,348,052 | 8,549,269,685 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 23,998,228,725 | $ | 24,476,275,248 | $ | 6,306,141,019 | $ | 6,983,348,052 | ||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
38 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
(For a share outstanding throughout each period)
iShares S&P 100 ETF | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited) |
| | Year Ended 03/31/23 |
| | Year Ended 03/31/22 |
| | Year Ended 03/31/21 |
| | Year Ended 03/31/20 |
| | Year Ended 03/31/19 |
| |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 187.06 | $ | 208.24 | $ | 179.83 | $ | 118.50 | $ | 125.31 | $ | 115.89 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net investment income(a) | 1.35 | 2.66 | 2.41 | 2.37 | 2.48 | 2.35 | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain(b) | 13.50 | (21.16 | ) | 28.36 | 61.39 | (6.58 | ) | 9.45 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net increase from investment operations | 14.85 | (18.50 | ) | 30.77 | 63.76 | (4.10 | ) | 11.80 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
Distributions from net investment income(c) | (1.33 | ) | (2.68 | ) | (2.36 | ) | (2.43 | ) | (2.71 | ) | (2.38 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 200.58 | $ | 187.06 | $ | 208.24 | $ | 179.83 | $ | 118.50 | $ | 125.31 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
Total Return(d) | ||||||||||||||||||||||||||||||||||||||||||||||||
Based on net asset value | 7.95 | %(e) | (8.80 | )% | 17.14 | % | 54.11 | % | (3.42 | )% | 10.25 | % | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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| |||||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.20 | %(g) | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||||||||||||||||||||||||||
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Net investment income | 1.34 | %(g) | 1.48 | % | 1.19 | % | 1.52 | % | 1.86 | % | 1.94 | % | ||||||||||||||||||||||||||||||||||||
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Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 8,414,281 | $ | 7,548,028 | $ | 8,777,448 | $ | 6,977,233 | $ | 4,852,686 | $ | 4,824,336 | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Portfolio turnover rate(h) | 2 | % | 3 | % | 2 | % | 8 | % | 4 | % | 7 | % | ||||||||||||||||||||||||||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 39 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares S&P 500 Growth ETF | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited) |
| | Year Ended 03/31/23 |
| | Year Ended 03/31/22 |
| | Year Ended 03/31/21 | (a) | | Year Ended 03/31/20 | (a) | | Year Ended 03/31/19 | (a) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 63.92 | $ | 76.34 | $ | 65.08 | $ | 41.25 | $ | 43.10 | $ | 38.76 | ||||||||||||||||||||||||||||||||||||
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Net investment income(b) | 0.38 | 0.60 | 0.41 | 0.47 | 0.60 | 0.52 | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain(c) | 4.50 | (12.44 | ) | 11.27 | 23.85 | (1.68 | ) | 4.33 | ||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net increase from investment operations | 4.88 | (11.84 | ) | 11.68 | 24.32 | (1.08 | ) | 4.85 | ||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Distributions from net investment income(d) | (0.37 | ) | (0.58 | ) | (0.42 | ) | (0.49 | ) | (0.77 | ) | (0.51 | ) | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 68.43 | $ | 63.92 | $ | 76.34 | $ | 65.08 | $ | 41.25 | $ | 43.10 | ||||||||||||||||||||||||||||||||||||
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Total Return(e) | ||||||||||||||||||||||||||||||||||||||||||||||||
Based on net asset value | 7.63 | %(f) | (15.48 | )% | 17.94 | % | 59.13 | % | (2.65 | )% | 12.59 | % | ||||||||||||||||||||||||||||||||||||
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Ratios to Average Net Assets(g) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.18 | %(h) | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | ||||||||||||||||||||||||||||||||||||
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Net investment income | 1.10 | %(h) | 0.94 | % | 0.55 | % | 0.82 | % | 1.30 | % | 1.27 | % | ||||||||||||||||||||||||||||||||||||
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Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 33,788,311 | $ | 30,164,091 | $ | 36,758,412 | $ | 31,174,756 | $ | 22,307,379 | $ | 22,550,900 | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Portfolio turnover rate(i) | 2 | % | 34 | % | 14 | % | 13 | % | 27 | % | 27 | % | ||||||||||||||||||||||||||||||||||||
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(a) | Per share amounts reflect a four-for-one stock split effective after the close of trading on October 16, 2020. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Where applicable, assumes the reinvestment of distributions. |
(f) | Not annualized. |
(g) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
40 | 2 0 2 3 BLACK ROCK SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares S&P 500 Value ETF | ||||||||||||||||||||||||||||||||||||||||||||||||
| |
| | Six Months Ended 09/30/23 (unaudited) |
| | Year Ended 03/31/23 |
| | Year Ended 03/31/22 |
| | Year Ended 03/31/21 |
| | Year Ended 03/31/20 |
| | Year Ended 03/31/19 |
| ||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 151.79 | $ | 155.61 | $ | 141.09 | $ | 96.29 | $ | 112.76 | $ | 109.32 | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net investment income(a) | 1.42 | 3.00 | 2.89 | 2.83 | 2.86 | 2.69 | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain(b) | 1.91 | (3.78 | ) | 14.48 | 44.86 | (16.41 | ) | 3.53 | ||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net increase from investment operations | 3.33 | (0.78 | ) | 17.37 | 47.69 | (13.55 | ) | 6.22 | ||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Distributions from net investment income(c) | (1.38 | ) | (3.04 | ) | (2.85 | ) | (2.89 | ) | (2.92 | ) | (2.78 | ) | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 153.74 | $ | 151.79 | $ | 155.61 | $ | 141.09 | $ | 96.29 | $ | 112.76 | ||||||||||||||||||||||||||||||||||||
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Total Return(d) | ||||||||||||||||||||||||||||||||||||||||||||||||
Based on net asset value | 2.19 | %(e) | (0.35 | )% | 12.39 | % | 50.10 | % | (12.34 | )% | 5.79 | % | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.18 | %(g) | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net investment income | 1.80 | %(g) | 2.06 | % | 1.92 | % | 2.39 | % | 2.40 | % | 2.43 | % | ||||||||||||||||||||||||||||||||||||
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Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 23,998,229 | $ | 24,476,275 | $ | 25,886,355 | $ | 21,424,451 | $ | 14,187,829 | $ | 15,234,432 | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Portfolio turnover rate(h) | 2 | % | 29 | % | 18 | % | 26 | % | 32 | % | 31 | % | ||||||||||||||||||||||||||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 41 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares S&P Small-Cap 600 Value ETF | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited) |
| | Year Ended 03/31/23 |
| | Year Ended 03/31/22 |
| | Year Ended 03/31/21 | (a) | | Year Ended 03/31/20 | (a) | | Year Ended 03/31/19 | (a) | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 93.67 | $ | 102.39 | $ | 100.53 | $ | 50.14 | $ | 73.81 | $ | 75.49 | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net investment income(b) | 0.98 | 1.62 | 1.07 | 1.12 | 1.10 | 1.20 | ||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain(c) | (4.53 | ) | (8.96 | ) | 2.32 | 50.16 | (23.45 | ) | (1.71 | ) | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net increase from investment operations | (3.55 | ) | (7.34 | ) | 3.39 | 51.28 | (22.35 | ) | (0.51 | ) | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Distributions from net investment income(d) | (0.92 | ) | (1.38 | ) | (1.53 | ) | (0.89 | ) | (1.32 | ) | (1.17 | ) | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 89.20 | $ | 93.67 | $ | 102.39 | $ | 100.53 | $ | 50.14 | $ | 73.81 | ||||||||||||||||||||||||||||||||||||
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Total Return(e) | ||||||||||||||||||||||||||||||||||||||||||||||||
Based on net asset value | (3.82 | )%(f) | (7.08 | )% | 3.38 | % | 103.08 | %(g) | (30.75 | )% | (0.71 | )% | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(h) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.18 | %(i) | 0.18 | % | 0.18 | % | 0.21 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Net investment income | 2.11 | %(i) | 1.71 | % | 1.04 | % | 1.56 | % | 1.48 | % | 1.54 | % | ||||||||||||||||||||||||||||||||||||
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Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 6,306,141 | $ | 6,983,348 | $ | 8,549,270 | $ | 8,806,141 | $ | 4,120,917 | $ | 6,155,204 | ||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||
Portfolio turnover rate(j) | 18 | % | 54 | % | 42 | % | 52 | % | 53 | % | 38 | % | ||||||||||||||||||||||||||||||||||||
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(a) | Per share amounts reflect a two-for-one stock split effective after the close of trading on October 16, 2020. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Where applicable, assumes the reinvestment of distributions. |
(f) | Not annualized. |
(g) | Includes a payment received from an affiliate, which had no impact on the Fund’s total return. |
(h) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) | Annualized. |
(j) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
42 | 2 0 2 3 BLACK ROCK SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
S&P 100 | Diversified | |
S&P 500 Growth | Diversified | |
S&P 500 Value | Diversified | |
S&P Small-Cap 600 Value | Diversified |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
NOTES TO FINANCIAL STATEMENTS | 43 |
Notes to Financial Statements (unaudited) (continued)
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
• | Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy
44 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
Securities | Cash | Non-Cash Collateral Received, |
| Net | ||||||||||||||||||
iShares ETF and Counterparty | Loaned at Value | Collateral Received | (a) | at Fair Value | (a) | Amount | (b) | |||||||||||||||
S&P 100 | ||||||||||||||||||||||
Barclays Bank PLC | $ | 510,191 | $ | (510,191 | ) | $ | — | $ | — | |||||||||||||
UBS AG | 14,740,128 | (14,740,128 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
$ | 15,250,319 | $ | (15,250,319 | ) | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
S&P 500 Growth | ||||||||||||||||||||||
Barclays Bank PLC | $ | 4,191,945 | $ | (4,191,945 | ) | $ | — | $ | — | |||||||||||||
BNP Paribas SA | 29,920,998 | (29,920,998 | ) | — | — | |||||||||||||||||
BofA Securities, Inc. | 27,460,935 | (27,460,935 | ) | — | — | |||||||||||||||||
Citigroup Global Markets, Inc. | 4,732,020 | (4,732,020 | ) | — | — | |||||||||||||||||
Goldman Sachs & Co. LLC | 20,059,737 | (20,059,737 | ) | — | — | |||||||||||||||||
HSBC Bank PLC | 1,251,424 | (1,251,424 | ) | — | — | |||||||||||||||||
J.P. Morgan Securities LLC | 11,279,057 | (11,279,057 | ) | — | — | |||||||||||||||||
Jefferies LLC | 738,800 | (738,800 | ) | — | — | |||||||||||||||||
RBC Capital Market LLC | 4,939,363 | (4,939,363 | ) | — | — | |||||||||||||||||
Scotia Capital (USA), Inc. | 230,945 | (230,945 | ) | — | — | |||||||||||||||||
SG Americas Securities LLC | 2,128,590 | (2,128,590 | ) | — | — | |||||||||||||||||
Toronto-Dominion Bank | 12,127,031 | (12,127,031 | ) | — | — | |||||||||||||||||
UBS AG | 20,389,461 | (20,225,190 | ) | — | 164,271 | |||||||||||||||||
Wells Fargo Bank N.A. | 3,027,143 | (3,027,143 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
$ | 142,477,449 | $ | (142,313,178 | ) | $ | — | $ | 164,271 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
S&P 500 Value | ||||||||||||||||||||||
Barclays Bank PLC | $ | 52,348,492 | $ | (52,348,492 | ) | $ | — | $ | — | |||||||||||||
Barclays Capital, Inc. | 2,948,968 | (2,948,968 | ) | — | — | |||||||||||||||||
BNP Paribas SA | 16,044,232 | (16,044,232 | ) | — | — | |||||||||||||||||
BofA Securities, Inc. | 596,330 | (596,330 | ) | — | — | |||||||||||||||||
Citadel Clearing LLC | 6,625,409 | (6,625,409 | ) | — | — | |||||||||||||||||
Citigroup Global Markets, Inc. | 156,023 | (156,023 | ) | — | — | |||||||||||||||||
Goldman Sachs & Co. LLC | 3,884,227 | (3,884,227 | ) | — | — | |||||||||||||||||
HSBC Bank PLC | 9,689,388 | (9,689,388 | ) | — | — | |||||||||||||||||
J.P. Morgan Securities LLC | 18,453,073 | (18,453,073 | ) | — | — | |||||||||||||||||
Jefferies LLC | 507,367 | (507,367 | ) | — | — | |||||||||||||||||
RBC Capital Market LLC | 26,279 | (26,279 | ) | — | — | |||||||||||||||||
Scotia Capital (USA), Inc. | 3,822,446 | (3,822,446 | ) | — | — | |||||||||||||||||
Scotia Capital, Inc. | 2,003 | (2,003 | ) | — | — | |||||||||||||||||
SG Americas Securities LLC | 4,540,382 | (4,540,382 | ) | — | — | |||||||||||||||||
Toronto-Dominion Bank | 205,541 | (205,541 | ) | — | — | |||||||||||||||||
UBS AG | 1,559,321 | (1,548,147 | ) | — | 11,174 | |||||||||||||||||
UBS Securities LLC | 115,842 | (115,842 | ) | — | — | |||||||||||||||||
Virtu Americas LLC | 124,704 | (124,704 | ) | — | — | |||||||||||||||||
Wells Fargo Bank N.A. | 1,730,195 | (1,730,195 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
$ | 123,380,222 | $ | (123,369,048 | ) | $ | — | $ | 11,174 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
S&P Small-Cap 600 Value | ||||||||||||||||||||||
Barclays Bank PLC | $ | 4,902,214 | $ | (4,902,214 | ) | $ | — | $ | — | |||||||||||||
Barclays Capital, Inc. | 266,031 | (266,031 | ) | — | — | |||||||||||||||||
BMO Capital Markets Corp. | 986 | (986 | ) | — | — | |||||||||||||||||
BNP Paribas SA | 74,533,651 | (74,533,651 | ) | — | — | |||||||||||||||||
BofA Securities, Inc. | 18,980,153 | (18,980,153 | ) | — | — | |||||||||||||||||
Citadel Clearing LLC | 3,202,485 | (3,202,485 | ) | — | — | |||||||||||||||||
Citigroup Global Markets, Inc. | 3,184,415 | (3,184,415 | ) | — | — | |||||||||||||||||
Credit Suisse Securities (USA) LLC | 1,869 | (1,869 | ) | — | — | |||||||||||||||||
Goldman Sachs & Co. LLC | 70,821,192 | (70,821,192 | ) | — | — | |||||||||||||||||
HSBC Bank PLC | 690,732 | (690,732 | ) | — | — | |||||||||||||||||
J.P. Morgan Securities LLC | 64,081,100 | (64,081,100 | ) | — | — | |||||||||||||||||
Jefferies LLC | 2,584,838 | (2,584,838 | ) | — | — | |||||||||||||||||
Morgan Stanley | 98,280,424 | (98,280,424 | ) | — | — | |||||||||||||||||
National Financial Services LLC | 8,295,124 | (8,295,124 | ) | — | — | |||||||||||||||||
Natixis SA | 3,733,421 | (3,733,421 | ) | — | — | |||||||||||||||||
RBC Capital Market LLC | 32,700,901 | (32,700,901 | ) | — | — | |||||||||||||||||
Scotia Capital (USA), Inc. | 139,470 | (139,470 | ) | — | — |
NOTES TO FINANCIAL STATEMENTS | 45 |
Notes to Financial Statements (unaudited) (continued)
Securities | Cash | Non-Cash Collateral Received, |
| Net | ||||||||||||||||||||||
iShares ETF and Counterparty | Loaned at Value | Collateral Received | (a) | at Fair Value | (a) | Amount | (b) | |||||||||||||||||||
S&P Small-Cap 600 Value (continued) | ||||||||||||||||||||||||||
SG Americas Securities LLC | $ | 253,259 | $ | (253,259 | ) | $ | — | $ | — | |||||||||||||||||
State Street Bank & Trust Co. | 25,574,270 | (25,574,270 | ) | — | — | |||||||||||||||||||||
Toronto-Dominion Bank | 2,645,900 | (2,645,900 | ) | — | — | |||||||||||||||||||||
UBS AG | 2,716,415 | (2,716,415 | ) | — | — | |||||||||||||||||||||
UBS Securities LLC | 217,551 | (217,434 | ) | — | 117 | |||||||||||||||||||||
Virtu Americas LLC | 279,450 | (279,450 | ) | — | — | |||||||||||||||||||||
Wells Fargo Bank N.A. | 193,584 | (193,584 | ) | — | — | |||||||||||||||||||||
Wells Fargo Securities LLC | 308,079 | (308,079 | ) | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 418,587,514 | $ | (418,587,397 | ) | $ | — | $ | 117 | ||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities. |
(b) | The market value of the loaned securities is determined as of September 30, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. DERIVATIVE FINANCIAL INSTRUMENTS
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.
Total return swaps are entered into by the iShares S&P Small-Cap 600 Value to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).
Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.
Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short
46 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.
Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty.
Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |
S&P 100 | 0.20% | |
S&P 500 Growth | 0.18 | |
S&P 500 Value | 0.18 | |
S&P Small-Cap 600 Value | 0.18 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities
NOTES TO FINANCIAL STATEMENTS | 47 |
Notes to Financial Statements (unaudited) (continued)
on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
| ||||
iShares ETF | Amounts | |||
| ||||
S&P 100 | $ | 4,855 | ||
S&P 500 Growth | 333,480 | |||
S&P 500 Value | 192,715 | |||
S&P Small-Cap 600 Value | 359,409 | |||
|
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
| ||||||||||||
iShares ETF | Purchases | Sales |
Net Realized Gain (Loss) | |||||||||
| ||||||||||||
S&P 100 | $ | 33,575,048 | $ | 10,463,121 | $ | (2,800,279) | ||||||
S&P 500 Growth | 233,574,740 | 62,244,403 | (4,787,647) | |||||||||
S&P 500 Value | 85,725,230 | 49,671,880 | (28,025,079) | |||||||||
S&P Small-Cap 600 Value | 342,483,225 | 76,357,300 | (14,812,026) | |||||||||
|
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
| ||||||||
iShares ETF | Purchases | Sales | ||||||
| ||||||||
S&P 100 | $ | 130,818,294 | $ | 130,452,449 | ||||
S&P 500 Growth | 591,789,039 | 585,384,954 | ||||||
S&P 500 Value | 420,607,201 | 407,768,277 | ||||||
S&P Small-Cap 600 Value | 1,316,116,358 | 1,223,744,827 | ||||||
|
48 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
For the six months ended September 30, 2023, in-kind transactions were as follows:
| ||||||||
iShares ETF |
In-kind Purchases | In-kind Sales | ||||||
| ||||||||
S&P 100 | $ | 757,464,664 | $ | 436,899,112 | ||||
S&P 500 Growth | 3,397,367,110 | 1,817,612,484 | ||||||
S&P 500 Value | 756,400,007 | 1,552,966,167 | ||||||
S&P Small-Cap 600 Value | 62,248,127 | 412,456,728 | ||||||
|
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains and qualified late-year losses as follows:
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iShares ETF |
Non-Expiring Capital Loss Carryforwards | Qualified Late-Year Ordinary Losses | ||||||||||
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S&P 100 | $ | 362,360,219 | $ | — | ||||||||
S&P 500 Growth | 3,160,067,414 | — | ||||||||||
S&P 500 Value | 1,566,023,135 | — | ||||||||||
S&P Small-Cap 600 Value | 854,325,126 | 26,519,224 | ||||||||||
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As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
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iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) | ||||||||||||
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S&P 100 | $ | 7,200,347,206 | $ | 1,707,088,159 | $ | (451,082,669 | ) | $ | 1,256,005,490 | |||||||
S&P 500 Growth | 25,415,525,105 | 9,673,894,480 | (1,064,713,304 | ) | 8,609,181,176 | |||||||||||
S&P 500 Value | 23,733,364,669 | 3,023,838,812 | (2,522,691,622 | ) | 501,147,190 | |||||||||||
S&P Small-Cap 600 Value | 7,453,557,083 | 539,123,867 | (1,218,239,289 | ) | (679,115,422 | ) | ||||||||||
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9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant
NOTES TO FINANCIAL STATEMENTS | 49 |
Notes to Financial Statements (unaudited) (continued)
increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
The Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||||||||||||||
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
S&P 100 | ||||||||||||||||||||||||||||
Shares sold | 3,750,000 | $ | 759,990,565 | 6,650,000 | $ | 1,223,360,035 | ||||||||||||||||||||||
Shares redeemed | (2,150,000 | ) | (438,243,285 | ) | (8,450,000 | ) | (1,514,768,203 | ) | ||||||||||||||||||||
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1,600,000 | $ | 321,747,280 | (1,800,000 | ) | $ | (291,408,168 | ) | |||||||||||||||||||||
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S&P 500 Growth | ||||||||||||||||||||||||||||
Shares sold | 48,450,000 | $ | 3,403,231,759 | 65,500,000 | $ | 4,123,265,045 | ||||||||||||||||||||||
Shares redeemed | (26,550,000 | ) | (1,820,701,328 | ) | (75,100,000 | ) | (4,921,945,281 | ) | ||||||||||||||||||||
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21,900,000 | $ | 1,582,530,431 | (9,600,000 | ) | $ | (798,680,236 | ) | |||||||||||||||||||||
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50 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||||||||||||||
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
S&P 500 Value | ||||||||||||||||||||||||||||
Shares sold | 4,800,000 | $ | 759,381,347 | 67,300,000 | $ | 9,872,676,861 | ||||||||||||||||||||||
Shares redeemed | (9,950,000 | ) | (1,558,862,421 | ) | (72,400,000 | ) | (10,508,335,858 | ) | ||||||||||||||||||||
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(5,150,000 | ) | $ | (799,481,074 | ) | (5,100,000 | ) | $ | (635,658,997 | ) | |||||||||||||||||||
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S&P Small-Cap 600 Value | ||||||||||||||||||||||||||||
Shares sold | 650,000 | $ | 62,869,057 | 39,800,000 | $ | 3,828,377,839 | ||||||||||||||||||||||
Shares redeemed | (4,500,000 | ) | (415,524,209 | ) | (48,750,000 | ) | (4,569,448,166 | ) | ||||||||||||||||||||
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(3,850,000 | ) | $ | (352,655,152 | ) | (8,950,000 | ) | $ | (741,070,327 | ) | |||||||||||||||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
NOTES TO FINANCIAL STATEMENTS | 51 |
Board Review and Approval of Investment Advisory Contract
iShares S&P 100 ETF, iShares S&P Small-Cap 600 Value ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
52 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares S&P 500 Growth ETF, iShares S&P 500 Value ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 53 |
Board Review and Approval of Investment Advisory Contract (continued)
applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
54 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed. The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 55 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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iShares ETF |
Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
S&P 100 | $ | 1.330995 | $ | — | $ | — | $ | 1.330995 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||
S&P Small-Cap 600 Value(a) | 0.868960 | — | 0.048370 | 0.917330 | 95 | — | 5 | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
56 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
GENERAL INFORMATION | 57 |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
NVS | Non-Voting Shares | |
REIT | Real Estate Investment Trust | |
S&P | Standard & Poor’s |
58 | 2 0 2 3 BLACK ROCK SEMI - ANNUAL REPORT TO SHAREHOLDERS |
THIS PAGE INTENTIONALLY LEFT BLANK.
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representations regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-301-0923
SEPTEMBER 30, 2023 |
| 2023 Semi-Annual Report (Unaudited)
|
iShares Trust
· | iShares Preferred and Income Securities ETF | PFF | NASDAQ |
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023
| ||||
6-Month
|
12-Month
| |||
U.S. large cap equities
|
5.18% |
21.62% | ||
U.S. small cap equities
|
(0.19) |
8.93 | ||
International equities
|
(1.28) |
25.65 | ||
Emerging market equities
|
(2.05) |
11.70 | ||
3-month Treasury bills
|
2.50 |
4.47 | ||
U.S. Treasury securities
|
(6.98) |
(2.90) | ||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)
|
(4.05) |
0.64 | ||
Tax-exempt municipal bonds
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(4.05) |
2.66 | ||
U.S. high yield bonds
|
2.22 |
10.28 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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Fund Summary as of September 30, 2023 | iShares® Preferred and Income Securities ETF |
Investment Objective
The iShares Preferred and Income Securities ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated preferred and hybrid securities, as represented by the ICE Exchange-Listed Preferred & Hybrid Securities Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment portfolio similar to the index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (0.13 | )% | 1.60 | % | 1.26 | % | 3.48 | % | 1.60 | % | 6.48 | % | 40.78 | % | ||||||||||||||||||
Fund Market | (0.29 | ) | 1.82 | 1.26 | 3.46 | 1.82 | 6.45 | 40.54 | ||||||||||||||||||||||||
Index(a) | 0.09 | 2.03 | 1.89 | 4.13 | 2.03 | 9.79 | 49.88 |
(a) | Index returns through January 31, 2019 reflect the performance of the S&P U.S. Preferred Stock Index, which, effective as of February 1 2019, was replaced by the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index as the Underlying Index of the Fund. Index returns from February 1, 2019 through October 31, 2019 reflect the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index. Index returns beginning on November 1, 2019 reflect the performance of the ICE Exchange-Listed Preferred & Hybrid Securities Index, which, effective as of November 1, 2019, replaced the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index as the Underlying Index of the Fund. |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ 1,000.00 | $ 998.70 | $ 2.30 | $ 1,000.00 | $ 1,022.69 | $ 2.33 | 0.46 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Financials | 65.9 | % | ||
Utilities | 10.7 | |||
Real Estate | 8.2 | |||
Communication Services | 4.9 | |||
Industrials | 3.3 | |||
Energy | 2.6 | |||
Consumer Discretionary | 2.4 | |||
Consumer Staples | 1.7 | |||
Other (each representing less than 1%) | 0.3 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Wells Fargo & Co., Series L, NVS | 2.1 | % | ||
Citigroup Capital XIII, (3-mo. CME Term SOFR + 6.632%), NVS | 1.8 | |||
Bank of America Corp., Series L, NVS | 1.3 | |||
Apollo Global Management, Inc | 1.1 | |||
JPMorgan Chase & Co., Series EE, NVS | 1.1 | |||
NextEra Energy, Inc. | 1.0 | |||
Citigroup, Inc., Series K, (3-mo. CME Term SOFR + 4.392%), NVS | 1.0 | |||
JPMorgan Chase & Co., Series DD, NVS | 0.9 | |||
AT&T Inc., Series C, NVS | 0.9 | |||
JPMorgan Chase & Co., Series MM, NVS | 0.8 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of the Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of the Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense example shown (which is based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other funds.
The expense example provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense example also provides information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical example is useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
A B O U T F U N D P E R F O R M A N C E / D I S C L O S U R E O F E X P E N S E S | 5 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Preferred Securities |
| |||||||
Preferred Stocks — 98.6% | ||||||||
Automobiles — 1.3% | ||||||||
Ford Motor Co. | 2,751,539 | $ | 61,304,289 | |||||
6.50%, NVS | 2,063,570 | 47,193,846 | ||||||
6.20% | 2,579,592 | 58,530,942 | ||||||
|
| |||||||
167,029,077 | ||||||||
Banks — 26.1% | ||||||||
Associated Banc-Corp | ||||||||
(5 year CMT + 2.812%), 6.63%(a) | 1,036,351 | 20,986,108 | ||||||
Series E, 5.88%, NVS(b)(c) | 356,804 | 6,162,005 | ||||||
Series F, 5.63%, NVS(b) | 346,760 | 5,790,892 | ||||||
Atlantic Union Bankshares Corp., Series A, 6.88%, NVS(b) | 515,337 | 10,605,635 | ||||||
Bank of America Corp. | ||||||||
Series 02, (3-mo. CME Term SOFR + 0.912%), 6.32%, NVS(a)(b) | 532,905 | 11,244,296 | ||||||
Series 4, (3-mo. CME Term SOFR + 1.012%), 6.42%, NVS(a)(b) | 366,260 | 7,728,086 | ||||||
Series 5, (3-mo. CME Term SOFR + 0.762%), 6.14%, NVS(a)(b) | 755,986 | 15,694,269 | ||||||
Series E, (3-mo. CME Term SOFR + 0.612%), 5.98%, NVS(a)(b) | 549,009 | 11,024,101 | ||||||
Series GG, 6.00%(b) | 2,517,149 | 60,587,776 | ||||||
Series HH, 5.88%, NVS(b) | 1,576,138 | 36,534,879 | ||||||
Series K*, (3-mo. USD LIBOR + 1.327%), 6.45%(a) | 1,976,978 | 49,681,457 | ||||||
Series KK, 5.38%, NVS(b) | 2,573,665 | 55,050,694 | ||||||
Series L, 7.25%, NVS(b)(d) | 144,486 | 160,698,774 | ||||||
Series LL, 5.00%, NVS(b) | 2,418,558 | 49,169,284 | ||||||
Series NN, 4.38%, NVS(b) | 1,988,531 | 35,018,031 | ||||||
Series PP, 4.13%, NVS(b) | 1,718,092 | 28,795,222 | ||||||
Series QQ, 4.25%, NVS(b) | 2,405,134 | 41,007,535 | ||||||
Series SS, 4.75%, NVS(b) | 1,292,733 | 24,794,619 | ||||||
Bank of Hawaii Corp., Series A, 4.38%, NVS(b) | 579,330 | 8,168,553 | ||||||
Bank OZK, Series A, 4.63%, NVS(b) | 1,203,666 | 18,199,430 | ||||||
Cadence Bank, Series A, 5.50%, NVS(b) | 552,484 | 9,685,045 | ||||||
Citigroup, Inc. | ||||||||
Series J, (3-mo. CME Term SOFR + 4.302%), 7.13%(a)(b) | 3,267,456 | 83,842,921 | ||||||
Series K, (3-mo. CME Term SOFR + 4.392%), 6.88%, NVS(a)(b) | 5,141,952 | 129,680,029 | ||||||
Citizens Financial Group, Inc. | ||||||||
Series D, (3-mo. CME Term SOFR + 3.904%), 6.35%, NVS(a)(b) | 1,031,826 | 24,227,274 | ||||||
Series E, 5.00%, NVS(b) | 1,547,760 | 29,577,694 | ||||||
ConnectOne Bancorp, Inc., Series A, (5 year CMT + 4.420%), 5.25%, NVS(a)(b) | 445,248 | 7,578,121 | ||||||
Cullen/Frost Bankers, Inc., Series B, 4.45%, NVS(b) | 515,917 | 8,590,018 | ||||||
Dime Community Bancshares, Inc., 5.50%, NVS(b)(c) | 455,631 | 7,062,281 | ||||||
Fifth Third Bancorp | ||||||||
Series A, 6.00%, NVS(b) | 693,912 | 16,119,576 | ||||||
Series I, (3-mo. CME Term SOFR + 3.972%), 6.63%, NVS(a)(b) | 1,547,776 | 39,623,066 | ||||||
Series K, 4.95%, NVS(b) | 866,603 | 18,068,673 | ||||||
First Citizens BancShares, Inc. | ||||||||
Series A, 5.38%, NVS(b) | 1,186,616 | 23,637,391 | ||||||
Series C, 5.63%, NVS(b) | 691,339 | 13,847,520 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
First Horizon Corp. | 515,917 | $ | 10,782,665 | |||||
Series D, (3-mo. USD LIBOR + 3.859%), 6.10%(a)(b)(c) | 343,971 | 8,103,957 | ||||||
Series F, 4.70%(b) | 524,310 | 7,450,445 | ||||||
FNB Corp., (3-mo. USD LIBOR + 4.600%), 7.25%, NVS(a)(b) | 381,320 | 9,540,626 | ||||||
Fulton Financial Corp., Series A, 5.13%, NVS(b) | 643,038 | 9,870,633 | ||||||
Hancock Whitney Corp., 6.25% | 593,277 | 14,143,724 | ||||||
Heartland Financial U.S.A., Inc., Series E, (5 year CMT + 6.675%), 7.00%, NVS(a)(b) | 395,571 | 9,624,242 | ||||||
Huntington Bancshares, Inc. | ||||||||
Series C, 5.70%, NVS(b) | 601,899 | 12,453,290 | ||||||
Series H, 4.50%, NVS(b) | 1,719,672 | 28,959,277 | ||||||
Series J, (5 year CMT + 2.704%), 6.88%, NVS(a)(b) | 1,119,521 | 26,297,548 | ||||||
JPMorgan Chase & Co. | ||||||||
Series DD, 5.75%, NVS(b) | 4,902,588 | 116,730,620 | ||||||
Series EE, 6.00%, NVS(b)(c) | 5,375,705 | 133,263,727 | ||||||
Series GG, 4.75%, NVS(b) | 2,565,662 | 52,570,414 | ||||||
Series JJ, 4.55%, NVS(b) | 4,312,435 | 82,108,762 | ||||||
Series LL, 4.63%, NVS(b) | 5,330,051 | 104,309,098 | ||||||
Series MM, 4.20%, NVS(b) | 5,763,356 | 104,316,744 | ||||||
KeyCorp | ||||||||
(5 year CMT + 3.132%), 6.20%, NVS(a)(b) | 2,063,675 | 40,736,945 | ||||||
Series E, (3-mo. CME Term SOFR + 4.154%), 6.13%, NVS(a)(b) | 1,719,703 | 38,177,407 | ||||||
Series F, 5.65%, NVS(b) | 1,461,786 | 28,037,056 | ||||||
Series G, 5.63%, NVS(b) | 1,547,760 | 28,679,993 | ||||||
M&T Bank Corp., Series H, (3-mo. USD LIBOR + 4.020%), 5.63%, NVS(a)(b)(c) | 859,881 | 19,579,490 | ||||||
Midland States Bancorp, Inc., (5 year CMT + 4.713%), 7.75%, NVS(a)(b) | 395,538 | 9,512,689 | ||||||
New York Community Bancorp, Inc., Series A., (3-mo. USD LIBOR + 3.821%), 6.38%, NVS(a)(b) | 1,771,288 | 39,836,267 | ||||||
New York Community Capital Trust V, 6.00%, NVS(d) | 250,256 | 9,126,836 | ||||||
Old National Bancorp | ||||||||
Series A, 7.00%, NVS(b) | 374,889 | 8,903,614 | ||||||
Series C, 7.00%, NVS(b) | 422,243 | 10,112,720 | ||||||
PacWest Bancorp, Series A, (5 year CMT + 4.820%), 7.75%, NVS(a)(b) | 1,765,286 | 36,170,710 | ||||||
Pinnacle Financial Partners, Inc., Series B, 6.75%, NVS(b) | 773,834 | 17,566,032 | ||||||
Popular Capital Trust II, 6.13% | 347,436 | 8,744,964 | ||||||
Regions Financial Corp. | ||||||||
Series B, (3-mo. CME Term SOFR + 3.798%), 6.38%, NVS(a)(b)(c) | 1,719,704 | 40,258,271 | ||||||
Series C, (3-mo. USD LIBOR + 3.148%), 5.70%, NVS(a)(b) | 1,719,704 | 33,706,198 | ||||||
Series E, 4.45%, NVS(b) | 1,375,814 | 22,370,736 | ||||||
Synovus Financial Corp. | ||||||||
Series D, (3-mo. CME Term SOFR + 3.614%), 9.01%, NVS(a)(b)(c) | 687,861 | 17,093,346 | ||||||
Series E, (5 year CMT + 4.127%), 5.88%, NVS(a)(b) | 1,203,778 | 25,917,340 | ||||||
Texas Capital Bancshares, Inc., Series B, 5.75%, NVS(b) | 1,065,901 | 19,164,900 | ||||||
Truist Financial Corp. | ||||||||
Series I, (3-mo. CME Term SOFR + 0.792%), 6.20%, NVS(a)(b) | 593,358 | 12,881,802 |
6 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Truist Financial Corp. | ||||||||
Series O, 5.25%, NVS(b) | 1,977,704 | $ | 42,026,210 | |||||
Series R, 4.75%, NVS(b) | 3,181,483 | 59,398,288 | ||||||
U.S. Bancorp | ||||||||
Series A, (3-mo. CME Term SOFR + 1.282%), 6.59%, NVS(a)(b) | 49,424 | 37,957,632 | ||||||
Series B*, (3-mo. CME Term SOFR + 0.862%), 6.17%, NVS(a)(b) | 3,439,480 | 64,937,382 | ||||||
Series K, 5.50%, NVS(b) | 1,977,704 | 42,678,852 | ||||||
Series L, 3.75%, NVS(b) | 1,722,592 | 26,200,624 | ||||||
Series M, 4.00%, NVS(b) | 2,579,560 | 41,298,756 | ||||||
Series O, 4.50%, NVS(b) | 1,547,728 | 28,307,945 | ||||||
Valley National Bancorp | ||||||||
Series A, (3-mo. USD LIBOR + 3.850%), 6.25%, NVS(a)(b)(c) | 440,399 | 8,438,045 | ||||||
Series B, (3-mo. USD LIBOR + 3.578%), 9.23%, NVS(a)(b)(c) | 349,558 | 7,945,453 | ||||||
Washington Federal, Inc., Series A, 4.88%, NVS(b) | 896,223 | 11,758,446 | ||||||
Webster Financial Corp. | ||||||||
Series F, 5.25%, NVS(b) | 515,917 | 9,394,849 | ||||||
Series G, 6.50%(b) | 464,317 | 9,797,089 | ||||||
Wells Fargo & Co. | ||||||||
Series AA, 4.70%, NVS(b) | 2,810,053 | 52,070,282 | ||||||
Series CC, 4.38%, NVS(b) | 2,517,073 | 43,721,558 | ||||||
Series DD, 4.25%, NVS(b) | 3,001,068 | 50,087,825 | ||||||
Series L, 7.50%, NVS(b)(d) | 240,114 | 267,727,110 | ||||||
Series R, 6.63%, NVS(a)(b) | 2,017,230 | 51,197,297 | ||||||
Series Y, 5.63%, NVS(b) | 1,651,207 | 37,779,616 | ||||||
Series Z, 4.75%, NVS(b) | 4,853,780 | 90,183,232 | ||||||
WesBanco, Inc., Series A, (5 year CMT + 6.557%), 6.75%, NVS(a)(b) | 515,934 | 11,969,669 | ||||||
Western Alliance Bancorp, Series A, (5 year CMT + 3.452%), 4.25%, NVS(a)(b) | 1,075,593 | 17,618,213 | ||||||
Wintrust Financial Corp. | ||||||||
Series D, (3-mo. CME Term SOFR + 4.322%), 6.50%, NVS(a)(b) | 431,710 | 9,579,645 | ||||||
Series E, (5 year CMT + 6.507%), 6.88%, NVS(a)(b) | 988,848 | 22,891,831 | ||||||
Zions Bancorp N.A., Series G, (3-mo. USD LIBOR + 4.240%), 9.91%, NVS(a)(b) | 475,994 | 11,909,370 | ||||||
|
| |||||||
3,322,459,562 | ||||||||
Broadline Retail — 0.6% | ||||||||
Dillard’s Capital Trust I, 7.50% | 687,861 | 17,953,172 | ||||||
Qurate Retail, Inc., 8.00%(c) | 1,092,048 | 31,287,175 | ||||||
QVC, Inc. | 1,720,590 | 15,106,780 | ||||||
6.38% | 773,834 | 6,685,926 | ||||||
|
| |||||||
71,033,053 | ||||||||
Capital Markets — 11.5% | ||||||||
Affiliated Managers Group, Inc. | 687,861 | 10,551,788 | ||||||
4.75%(c) | 945,862 | 15,568,889 | ||||||
5.88% | 1,031,835 | 21,864,584 | ||||||
B Riley Financial, Inc. | 620,968 | 13,630,248 | ||||||
6.00% | 913,967 | 18,690,625 | ||||||
5.50% | 747,833 | 16,826,242 | ||||||
5.25% | 1,394,645 | 25,410,432 | ||||||
5.00% | 1,116,849 | 22,839,562 | ||||||
6.75% | 483,236 | 11,960,091 | ||||||
6.38% | 503,685 | 12,128,735 |
Security | Shares | Value | ||||||
Capital Markets (continued) | ||||||||
Brookfield Finance I UK PLC, 4.50%(b) | 791,053 | $ | 11,699,674 | |||||
Brookfield Finance, Inc., Series 50, 4.63%, NVS | 1,375,806 | 21,311,235 | ||||||
Carlyle Finance LLC, 4.63%, NVS | 1,719,704 | 28,237,540 | ||||||
Charles Schwab Corp. (The) | ||||||||
Series D, 5.95%, NVS(b)(c) | 2,579,592 | 62,813,065 | ||||||
Series J, 4.45%, NVS(b) | 2,063,675 | 38,404,992 | ||||||
Crescent Capital BDC, Inc., 5.00% | 383,883 | 8,982,862 | ||||||
Gladstone Investment Corp. | 432,348 | 10,052,091 | ||||||
4.88% | 462,786 | 10,445,080 | ||||||
Goldman Sachs Group, Inc. (The) | ||||||||
Series A, (3-mo. CME Term SOFR + 1.012%), 6.38%, NVS(a)(b) | 2,579,511 | 57,007,193 | ||||||
Series C, (3-mo. CME Term SOFR + 1.012%), 6.38%, NVS(a)(b)(c) | 687,841 | 14,884,879 | ||||||
Series D, (3-mo. CME Term SOFR + 0.932%), 6.30%, NVS(a)(b) | 4,643,189 | 102,289,454 | ||||||
Series K, (3-mo. CME Term SOFR + 3.812%), 6.38%(a)(b) | 2,407,700 | 60,553,655 | ||||||
KKR Group Finance Co. IX LLC, 4.63%, NVS | 1,719,704 | 29,596,106 | ||||||
Morgan Stanley | ||||||||
Series A, (3-mo. CME Term SOFR + 0.962%), 6.27%(a)(b) | 3,714,131 | 80,373,795 | ||||||
Series E, 7.13%, NVS(a)(b) | 2,908,898 | 74,642,323 | ||||||
Series F, 6.88%, NVS(a)(b) | 2,865,875 | 71,646,875 | ||||||
Series I, 6.38%, NVS(a)(b) | 3,377,647 | 83,765,646 | ||||||
Series K, 5.85%, NVS(a)(b) | 3,375,714 | 78,417,836 | ||||||
Series L, 4.88%, NVS(b) | 1,659,656 | 33,226,313 | ||||||
Series O, 4.25%, NVS(b) | 4,388,823 | 74,829,432 | ||||||
Series P, 6.50%, NVS(b) | 3,378,622 | 84,938,557 | ||||||
Northern Trust Corp., Series E, 4.70%, NVS(b) | 1,375,814 | 28,933,368 | ||||||
Oaktree Capital Group LLC | ||||||||
Series A, 6.63%, NVS(b) | 619,119 | 13,181,043 | ||||||
Series B, 6.55%, NVS(b) | 808,288 | 17,038,711 | ||||||
Prospect Capital Corp., Series A, 5.35%(b) | 509,371 | 7,941,094 | ||||||
Saratoga Investment Corp., Series 2027, 6.00% | 364,100 | 8,417,992 | ||||||
State Street Corp. | ||||||||
Series D, 5.90%, NVS(a)(b)(c) | 2,579,592 | 64,644,575 | ||||||
Series G, 5.35%, NVS(a)(b) | 1,719,703 | 39,897,110 | ||||||
Stifel Financial Corp. 5.20% | 773,834 | 16,637,431 | ||||||
Series B, 6.25%, NVS(b) | 550,290 | 13,003,353 | ||||||
Series C, 6.13%, NVS(b) | 773,834 | 18,765,474 | ||||||
Series D, 4.50%, NVS(b) | 1,031,835 | 16,994,322 | ||||||
Trinity Capital, Inc., 7.00% | 627,705 | 15,786,781 | ||||||
|
| |||||||
1,468,831,053 | ||||||||
Chemicals — 0.1% | ||||||||
EIDP, Inc., Series B, 4.50%, NVS(b) | 143,849 | 10,893,685 | ||||||
|
| |||||||
Commercial Services & Supplies — 0.2% | ||||||||
Pitney Bowes, Inc., 6.70% | 1,361,182 | 23,235,377 | ||||||
|
| |||||||
Consumer Finance — 2.5% | ||||||||
Atlanticus Holdings Corp., 6.13% | 515,917 | 11,546,222 | ||||||
Capital One Financial Corp. | ||||||||
Series I, 5.00%, NVS(b) | 5,159,184 | 96,579,925 | ||||||
Series J, 4.80%, NVS(b) | 4,299,296 | 76,054,546 | ||||||
Series K, 4.63%, NVS(b) | 433,615 | 7,466,850 | ||||||
Series L, 4.38%, NVS(b) | 2,321,595 | 37,168,736 | ||||||
Series N, 4.25%, NVS(b) | 1,461,803 | 22,979,543 | ||||||
Navient Corp., 6.00%(c) | 1,031,829 | 17,272,818 |
S C H E D U L E O F I N V E S T M E N T S | 7 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Consumer Finance (continued) | ||||||||
SLM Corp., Series B, (3-mo. CME Term SOFR + 1.962%), 7.37%(a)(b) | 215,488 | $ | 13,302,074 | |||||
Synchrony Financial, Series A, 5.63%, NVS(b) | 2,579,592 | 41,428,248 | ||||||
|
| |||||||
323,798,962 | ||||||||
Diversified REITs — 0.5% | ||||||||
Armada Hoffler Properties, Inc., Series A, 6.75%, NVS(b) | 588,441 | 12,416,105 | ||||||
EPR Properties | ||||||||
Series C, 5.75%, NVS(b)(d) | 466,130 | 8,707,308 | ||||||
Series E, 9.00%, NVS(b)(d) | 300,443 | 7,697,350 | ||||||
Global Net Lease, Inc. | ||||||||
Series A, 7.25%, NVS(b) | 584,670 | 10,980,103 | ||||||
Series B, 6.88%(b) | 408,417 | 7,130,961 | ||||||
Series D, 7.50%, NVS(b) | 682,222 | 12,389,151 | ||||||
LXP Industrial Trust, Series C, 6.50%, NVS(b)(d) | 167,661 | 7,556,481 | ||||||
|
| |||||||
66,877,459 | ||||||||
Diversified Telecommunication Services — 3.5% | ||||||||
AT&T Inc. | 4,548,683 | 100,025,539 | ||||||
5.63% | 2,837,512 | 65,489,777 | ||||||
Series A, 5.00%, NVS(b) | 4,127,352 | 83,455,057 | ||||||
Series C, 4.75%, NVS(b) | 6,019,072 | 115,445,801 | ||||||
Qwest Corp. | 2,270,075 | 31,395,137 | ||||||
6.50%, NVS | 3,362,040 | 45,690,124 | ||||||
|
| |||||||
441,501,435 | ||||||||
Electric Utilities — 5.8% | ||||||||
BIP Bermuda Holdings I Ltd., 5.13%(b) | 1,031,796 | 16,488,100 | ||||||
Brookfield BRP Holdings Canada, Inc. | 1,203,669 | 17,645,788 | ||||||
4.88%(b) | 894,253 | 13,360,140 | ||||||
Brookfield Infrastructure Finance ULC, 5.00% | 859,880 | 14,351,397 | ||||||
Duke Energy Corp. | 1,719,704 | 41,324,487 | ||||||
Series A, 5.75%, NVS(b) | 3,439,480 | 82,237,967 | ||||||
Entergy Arkansas LLC, 4.88% | 1,410,187 | 30,883,095 | ||||||
Entergy Louisiana LLC, 4.88% | 928,635 | 20,727,133 | ||||||
Entergy Mississippi LLC, 4.90% | 894,260 | 20,058,252 | ||||||
Georgia Power Co., Series 2017, 5.00% | 928,635 | 21,720,773 | ||||||
NextEra Energy Capital Holdings, Inc., Series N, 5.65% | 2,364,662 | 57,768,693 | ||||||
NextEra Energy, Inc., 6.93%(d) | 3,439,480 | 130,115,528 | ||||||
Pacific Gas & Electric Co., Series A, 6.00%(b) | 368,157 | 7,547,219 | ||||||
SCE Trust II, 5.10%, NVS(b)(c) | 756,688 | 13,537,148 | ||||||
SCE Trust III, Series H, (3-mo. USD LIBOR + 2.990%), 5.75%, NVS(a)(b) | 945,862 | 22,710,147 | ||||||
SCE Trust IV, Series J, (3-mo. USD LIBOR + 3.132%), 5.38%, NVS(a)(b) | 1,117,805 | 23,160,920 | ||||||
SCE Trust V, Series K, (3-mo. USD LIBOR + 3.790%), 5.45%, NVS(a)(b) | 1,031,839 | 22,597,274 | ||||||
SCE Trust VI, 5.00%, NVS(b) | 1,633,731 | 29,423,495 | ||||||
Southern Co. (The) | 1,547,760 | 34,886,510 | ||||||
Series 2020, 4.95% | 3,439,480 | 72,401,054 | ||||||
Series C, 4.20% | 2,579,592 | 50,224,656 | ||||||
|
| |||||||
743,169,776 | ||||||||
Electrical Equipment — 0.3% | ||||||||
Babcock & Wilcox Enterprises, Inc. 6.50% | 520,912 | 10,861,015 |
Security | Shares | Value | ||||||
Electrical Equipment (continued) | ||||||||
Babcock & Wilcox Enterprises, Inc. | 663,969 | $ | 15,769,264 | |||||
Series A, 7.75%, NVS(b) | 659,452 | 11,626,139 | ||||||
|
| |||||||
38,256,418 | ||||||||
Entertainment — 0.0% | ||||||||
Chicken Soup For The Soul Entertainment, Inc., Series A, NVS, 9.75%(b) | 469,760 | 4,490,906 | ||||||
|
| |||||||
Financial Services — 5.3% | ||||||||
Apollo Global Management, Inc. | 2,472,131 | 136,214,418 | ||||||
(5 year CMT + 3.226%), 7.63%(a) | 2,053,596 | 53,783,679 | ||||||
Citigroup Capital XIII, (3-mo. CME Term SOFR + 6.632%), 12.00%, NVS(a) | 7,725,015 | 226,574,690 | ||||||
Compass Diversified Holdings | ||||||||
Series A, 7.25%, NVS(b) | 349,059 | 7,860,809 | ||||||
Series B, (3-mo. USD LIBOR + 4.985%), 7.88%, NVS(a)(b) | 347,963 | 8,354,592 | ||||||
Series C, 7.88%, NVS(b) | 397,412 | 9,629,293 | ||||||
Equitable Holdings, Inc. | ||||||||
Series A, 5.25%, NVS(b) | 2,751,539 | 54,205,318 | ||||||
Series C, 4.30%(b) | 1,031,787 | 15,590,301 | ||||||
Federal Agricultural Mortgage Corp. | ||||||||
Series D, 5.70%, NVS(b) | 348,671 | 7,684,709 | ||||||
Series F, 5.25%, NVS(b) | 417,245 | 8,399,142 | ||||||
Series G, 4.88%, NVS(b) | 435,104 | 8,084,232 | ||||||
Jackson Financial, Inc., (5 year CMT + 3.728%), 8.00%(a)(b) | 1,856,550 | 46,506,577 | ||||||
Merchants Bancorp | ||||||||
(5 year CMT + 4.340%), 8.25%, NVS(a)(b) | 495,247 | 11,425,348 | ||||||
Series B, (3-mo. USD LIBOR + 4.569%), 6.00%, NVS(a)(b) | 452,839 | 10,021,327 | ||||||
Series C, 6.00%, NVS(b) | 680,926 | 12,011,535 | ||||||
National Rural Utilities Cooperative Finance Corp., Series US, 5.50% | 859,888 | 20,009,594 | ||||||
NewtekOne, Inc., 5.50% | 395,571 | 9,533,261 | ||||||
Voya Financial, Inc., Series B, (5 year CMT + 3.210%), 5.35%, NVS(a)(b) | 1,031,835 | 24,722,767 | ||||||
|
| |||||||
670,611,592 | ||||||||
Food Products — 1.6% | ||||||||
CHS, Inc. | 1,055,265 | 32,291,109 | ||||||
Series 1, 7.88%, NVS(b) | 1,845,198 | 49,359,047 | ||||||
Series 2, (3-mo. USD LIBOR + 4.298%), 7.10%, NVS(a)(b) | 1,444,560 | 36,836,280 | ||||||
Series 3, (3-mo. USD LIBOR + 4.155%), 6.75%, NVS(a)(b) | 1,693,944 | 42,399,418 | ||||||
Series 4, 7.50%(b) | 1,779,917 | 45,067,498 | ||||||
|
| |||||||
205,953,352 | ||||||||
Gas Utilities — 0.3% | ||||||||
Entergy New Orleans LLC, 5.50% | 381,380 | 8,840,389 | ||||||
Spire, Inc., Series A, 5.90%, NVS(b) | 859,896 | 20,130,165 | ||||||
UGI Corp., 7.25%(d) | 189,617 | 10,834,715 | ||||||
|
| |||||||
39,805,269 | ||||||||
Health Care REITs — 0.2% | ||||||||
Diversified Healthcare Trust | 859,888 | 13,302,468 | ||||||
5.63% | 1,203,778 | 17,334,403 | ||||||
|
| |||||||
30,636,871 | ||||||||
Health Care Technology — 0.1% | ||||||||
CareCloud, Inc., Series A, 11.00%, NVS(b) | 389,214 | 9,450,116 | ||||||
|
|
8 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Hotel & Resort REITs — 1.2% | ||||||||
Braemar Hotels & Resorts, Inc., Series B, 5.50%, NVS(b)(d) | 269,152 | $ | 3,216,366 | |||||
Chatham Lodging Trust, Series A, 6.63%, NVS(b) | 414,831 | 8,470,849 | ||||||
DiamondRock Hospitality Co., 8.25%, NVS(b) | 409,251 | 10,431,808 | ||||||
Hersha Hospitality Trust | ||||||||
Series D, 6.50%, NVS(b) | 662,262 | 16,390,984 | ||||||
Series E, 6.50%, NVS(b) | 344,051 | 8,511,822 | ||||||
Pebblebrook Hotel Trust | ||||||||
Series E, 6.38%, NVS(b) | 377,841 | 7,553,042 | ||||||
Series F, 6.30%, NVS(b) | 515,917 | 10,277,067 | ||||||
Series G, 6.38%, NVS(b) | 791,061 | 15,575,991 | ||||||
Series H, 5.70%, NVS(b) | 773,834 | 14,254,022 | ||||||
RLJ Lodging Trust, Series A, 1.95%(b)(d) | 1,107,187 | 26,627,847 | ||||||
Summit Hotel Properties, Inc. | ||||||||
Series E, 6.25%, NVS(b) | 550,296 | 10,791,305 | ||||||
Series F, 5.88%, NVS(b) | 345,701 | 6,371,269 | ||||||
Sunstone Hotel Investors, Inc. | ||||||||
Series H, 6.13%(b) | 397,161 | 8,443,643 | ||||||
Series I, 5.70%, NVS(b) | 344,325 | 7,093,095 | ||||||
|
| |||||||
154,009,110 | ||||||||
Hotels, Restaurants & Leisure — 0.1% | ||||||||
FAT Brands, Inc., Series B, NVS, 8.25% | 634,571 | 10,356,199 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.8% | ||||||||
AES Corp. (The), 6.88%(d) | 896,841 | 54,707,301 | ||||||
Brookfield Renewable Partners LP, Series 17, 5.25%, NVS(b) | 687,925 | 12,520,235 | ||||||
Tennessee Valley Authority | ||||||||
Series A, (30 yr. CMT + 0.840%), 2.22%(a) | 716,701 | 14,950,383 | ||||||
Series D, (30 yr. CMT + 0.940%), 2.13%(a) | 882,109 | 19,062,375 | ||||||
|
| |||||||
101,240,294 | ||||||||
Industrial Conglomerates — 0.1% | ||||||||
Steel Partners Holdings LP, Series A, 6.00%, NVS | 544,570 | 12,677,590 | ||||||
|
| |||||||
Insurance — 13.3% | ||||||||
AEGON Funding Co. LLC, 5.10%, NVS | 3,181,483 | 63,184,252 | ||||||
Allstate Corp. (The) | ||||||||
(3-mo. CME Term SOFR + 3.427%), 8.74%, NVS(a) | 1,719,704 | 44,299,575 | ||||||
Series H, 5.10%, NVS(b) | 3,955,398 | 77,288,477 | ||||||
Series I, 4.75%, NVS(b) | 1,031,835 | 18,944,491 | ||||||
Series J, 7.38%(b) | 2,063,699 | 54,357,832 | ||||||
American Equity Investment Life Holding Co. | ||||||||
Series A, (5 year CMT + 4.322%), 5.95%, NVS(a)(b) | 1,375,814 | 30,997,089 | ||||||
Series B, (5 year CMT + 6.297%), 6.63%, NVS(a)(b) | 1,031,835 | 25,032,317 | ||||||
American Financial Group, Inc. | 431,091 | 9,854,740 | ||||||
4.50% | 687,861 | 12,230,169 | ||||||
5.63% | 515,917 | 11,293,423 | ||||||
5.13% | 687,868 | 13,853,661 | ||||||
American International Group, Inc., Series A, 5.85%, NVS(b) | 1,719,703 | 40,034,686 | ||||||
Arch Capital Group Ltd. | ||||||||
Series F, 5.45%, NVS(b) | 1,135,032 | 23,381,659 | ||||||
Series G, 4.55%(b) | 1,719,704 | 30,765,505 | ||||||
Argo Group International Holdings Ltd., (5 year CMT + 6.712%), 7.00%, NVS(a)(b) | 515,917 | 12,222,074 | ||||||
Argo Group U.S., Inc., 6.50% | 494,427 | 10,897,171 | ||||||
Aspen Insurance Holdings Ltd. 5.63%, NVS(b) | 965,436 | 18,574,989 |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
Aspen Insurance Holdings Ltd. | 750,979 | $ | 13,645,288 | |||||
(3-mo. USD LIBOR + 4.060%), 9.59%, NVS(a)(b) | 945,862 | 24,214,067 | ||||||
Assurant, Inc., 5.25% | 859,888 | 16,767,816 | ||||||
Athene Holding Ltd. | ||||||||
Series A, (3-mo. USD LIBOR + 4.253%), 6.35%, NVS(a)(b) | 2,966,550 | 64,225,807 | ||||||
Series B, 5.63%, NVS(b) | 1,186,632 | 23,269,853 | ||||||
Series C, (5 year CMT + 5.970%), 6.38%, NVS(a)(b) | 2,063,675 | 49,631,384 | ||||||
Series D, 4.88%(b) | 1,977,704 | 32,394,791 | ||||||
Series E, (5 year CMT + 3.962%), 7.75%, NVS(a)(b) | 1,719,716 | 43,182,069 | ||||||
Axis Capital Holdings Ltd., Series E, 5.50%, NVS(b) | 1,891,731 | 37,929,207 | ||||||
Brighthouse Financial, Inc. | 1,289,752 | 30,296,274 | ||||||
Series A, 6.60%, NVS(b) | 1,461,787 | 33,986,548 | ||||||
Series B, 6.75%, NVS(b) | 1,384,346 | 34,124,129 | ||||||
Series C, 5.38%(b) | 1,977,704 | 35,598,672 | ||||||
Series D, 4.63%, NVS(b) | 1,203,778 | 17,767,763 | ||||||
CNO Financial Group, Inc., 5.13% | 518,660 | 8,054,790 | ||||||
Enstar Group Ltd. | ||||||||
Series D, (3-mo. USD LIBOR + 4.015%), 7.00%, NVS(a)(b) | 1,375,814 | 34,244,010 | ||||||
Series E, 7.00%, NVS(b) | 382,049 | 8,920,844 | ||||||
Globe Life, Inc., 4.25%, NVS | 1,117,805 | 20,847,063 | ||||||
Hartford Financial Services Group, Inc. (The), Series G, 6.00%, NVS(b) | 1,186,700 | 29,513,229 | ||||||
Kemper Corp., (5 year CMT + 4.140%), 5.88%(a) | 516,029 | 9,783,910 | ||||||
Lincoln National Corp., Series D, 9.00%(b) | 1,688,060 | 44,784,232 | ||||||
Maiden Holdings Ltd., 6.63% | 380,131 | 5,968,057 | ||||||
Maiden Holdings North America Ltd., 7.75% | 527,891 | 9,311,997 | ||||||
MetLife, Inc. | ||||||||
Series A, (3-mo. CME Term SOFR + 1.262%), 6.67%, NVS(a)(b) | 2,063,675 | 47,712,166 | ||||||
Series E, 5.63%, NVS(b)(c) | 2,768,766 | 65,259,815 | ||||||
Series F, 4.75%, NVS(b) | 3,439,480 | 69,787,049 | ||||||
PartnerRe Ltd., Series J, 4.88%, NVS(b) | 687,853 | 12,580,831 | ||||||
Prudential Financial, Inc. | 1,031,834 | 25,207,705 | ||||||
5.63% | 1,943,331 | 46,717,677 | ||||||
4.13%, NVS | 1,719,703 | 33,121,480 | ||||||
Reinsurance Group of America, Inc. | ||||||||
(3-mo. USD LIBOR + 4.040%), 5.75%, NVS(a)(c) | 1,375,814 | 34,409,108 | ||||||
(5 year CMT + 3.456%), 7.13%(a) | 2,407,648 | 62,935,919 | ||||||
RenaissanceRe Holdings Ltd. | ||||||||
Series F, 5.75%, NVS(b) | 859,888 | 18,186,631 | ||||||
Series G, 4.20%, NVS(b) | 1,719,704 | 26,655,412 | ||||||
Selective Insurance Group, Inc., Series B, 4.60%(b) | 687,861 | 11,225,892 | ||||||
SiriusPoint Ltd., Series B, (5 year CMT + 7.298%), 8.00%, NVS(a)(b) | 687,933 | 16,991,945 | ||||||
Unum Group, 6.25% | 1,031,835 | 22,948,010 | ||||||
W R Berkley Corp. | 636,264 | 14,233,226 | ||||||
5.10% | 1,031,835 | 20,100,146 | ||||||
4.13% | 1,031,835 | 17,180,053 | ||||||
4.25%(c) | 859,888 | 16,140,098 | ||||||
|
| |||||||
1,687,067,073 |
S C H E D U L E O F I N V E S T M E N T S | 9 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
IT Services — 0.0% | ||||||||
Exela Technologies, Inc., Series B, 6.00%(b)(d) | 421,750 | $ | 1,227,293 | |||||
|
| |||||||
Leisure Products — 0.4% | ||||||||
Brunswick Corp. | 636,264 | 15,715,721 | ||||||
6.63% | 434,741 | 10,707,671 | ||||||
6.38% | 791,061 | 19,127,855 | ||||||
|
| |||||||
45,551,247 | ||||||||
Machinery — 0.7% | ||||||||
Chart Industries, Inc., Series B, 6.75%, NVS(d) | 692,222 | 46,157,363 | ||||||
RBC Bearings, Inc., Series A, 5.00%, NVS(d) | 395,571 | 43,556,323 | ||||||
|
| |||||||
89,713,686 | ||||||||
Marine Transportation — 0.1% | ||||||||
Global Ship Lease, Inc., 8.75%, NVS(b) | 375,835 | 9,617,618 | ||||||
|
| |||||||
Media — 0.2% | ||||||||
Liberty Broadband Corp., Series A, 7.00%(b) | 615,732 | 13,915,543 | ||||||
Paramount Global, Series A, 5.75%, NVS(d) | 859,808 | 15,261,592 | ||||||
|
| |||||||
29,177,135 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 6.3% | ||||||||
ACRES Commercial Realty Corp. | ||||||||
Series C, (3-mo. USD LIBOR + 5.927%), 8.63%(a)(b) | 416,930 | 9,134,936 | ||||||
Series D, 7.88%, NVS(b) | 402,936 | 7,381,788 | ||||||
AGNC Investment Corp. | ||||||||
Series C, (3-mo. CME Term SOFR + 5.373%), 10.68%, NVS(a)(b) | 1,117,805 | 28,671,698 | ||||||
Series D, (3-mo. USD LIBOR + 4.332%), 6.88%, NVS(a)(b) | 808,288 | 19,398,912 | ||||||
Series E, (3-mo. USD LIBOR + 4.993%), 6.50%, NVS(a)(b) | 1,384,346 | 32,587,505 | ||||||
Series F, (3-mo. USD LIBOR + 4.697%), 6.13%, NVS(a)(b) | 1,977,704 | 42,777,738 | ||||||
Series G, (5 year CMT + 4.390%), 7.75%, NVS(a)(b) | 515,913 | 11,329,449 | ||||||
Annaly Capital Management, Inc. | ||||||||
Series F, (3-mo. USD LIBOR + 4.993%), 10.65%, NVS(a)(b) | 2,476,392 | 62,727,009 | ||||||
Series G, (3-mo. USD LIBOR + 4.172%), 9.83%, NVS(a)(b) | 1,461,787 | 36,237,700 | ||||||
Series I, (3-mo. USD LIBOR + 4.989%), 6.75%, NVS(a)(b) | 1,522,003 | 36,147,571 | ||||||
Arbor Realty Trust, Inc. | ||||||||
Series D, 6.38%, NVS(b) | 753,919 | 13,412,219 | ||||||
Series E, 6.25%, NVS(b) | 476,904 | 8,221,825 | ||||||
Series F, (3-mo. CME Term SOFR + 5.440%), 6.25%, NVS(a)(b) | 925,507 | 17,075,604 | ||||||
ARMOUR Residential REIT, Inc., Series C, 7.00%(b) | 588,908 | 11,895,942 | ||||||
Chimera Investment Corp. | ||||||||
Series A, 8.00%, NVS(b) | 498,691 | 9,834,187 | ||||||
Series B, (3-mo. USD LIBOR + 5.791%), 8.00%, NVS(a)(b)(c) | 1,117,805 | 23,753,356 | ||||||
Series C, (3-mo. USD LIBOR + 4.743%), 7.75%, NVS(a)(b) | 894,261 | 16,132,468 | ||||||
Series D, (3-mo. USD LIBOR + 5.379%), 8.00%, NVS(a)(b) | 687,861 | 14,355,659 | ||||||
Dynex Capital, Inc., Series C, (3-mo. USD LIBOR + 5.461%), 6.90%, NVS(a)(b) | 383,429 | 8,738,347 | ||||||
Ellington Financial, Inc. | ||||||||
(3-mo. USD LIBOR + 5.196%), 6.75%, NVS(a)(b) | 400,126 | 9,046,849 |
Security | Shares | Value | ||||||
Mortgage Real Estate Investment Trusts (REITs) (continued) | ||||||||
Ellington Financial, Inc. | ||||||||
Series B, (5 year CMT + 4.990%), 6.25%, NVS(a)(b) | 421,033 | $ | 7,978,575 | |||||
Series C, (5 year CMT + 5.130%), | 345,561 | 8,099,950 | ||||||
Franklin BSP Realty Trust, Inc., Series E, 7.50%, NVS(b)(c) | 888,139 | 17,576,271 | ||||||
Granite Point Mortgage Trust, Inc., Series A, | ||||||||
(SOFR + 5.830%), 7.00%, NVS(a)(b) | 707,587 | 12,028,979 | ||||||
Great Ajax Corp., 7.25%, NVS(d) | 357,646 | 8,626,422 | ||||||
Invesco Mortgage Capital, Inc. | ||||||||
Series B, (3-mo. USD LIBOR + 5.180%), 7.75%, NVS(a)(b) | 383,975 | 8,301,540 | ||||||
Series C, (3-mo. USD LIBOR + 5.289%), 7.50%, NVS(a)(b) | 662,801 | 12,898,107 | ||||||
KKR Real Estate Finance Trust, Inc., Series A, 6.50%, NVS(b) | 1,127,305 | 18,375,071 | ||||||
MFA Financial, Inc. | ||||||||
Series B, 7.50%, NVS(b) | 687,861 | 12,546,585 | ||||||
Series C, (3-mo. USD LIBOR + 5.345%), 6.50%, NVS(a)(b) | 945,862 | 18,028,130 | ||||||
New York Mortgage Trust, Inc. | ||||||||
Series D, (3-mo. USD LIBOR + 5.695%), 8.00%, NVS(a)(b) | 531,261 | 10,890,851 | ||||||
Series E, (3-mo. USD LIBOR + 6.429%), 7.88%, NVS(a)(b) | 631,428 | 14,074,530 | ||||||
Series F, (SOFR + 6.130%), 6.88%, | 493,540 | 9,130,490 | ||||||
PennyMac Mortgage Investment Trust | ||||||||
Series A, 8.13%, NVS(a)(b) | 395,571 | 8,631,359 | ||||||
Series B, 8.00%, NVS(a)(b) | 670,715 | 14,185,622 | ||||||
Series C, 6.75%, NVS(b) | 859,880 | 15,065,098 | ||||||
Ready Capital Corp. | 364,077 | 8,574,013 | ||||||
5.75% | 709,432 | 16,813,538 | ||||||
Series E, 6.50%, NVS(b) | 403,114 | 7,296,363 | ||||||
Rithm Capital Corp. | ||||||||
Series A, (3-mo. USD LIBOR + 5.802%), 7.50%, NVS(a)(b) | 536,625 | 12,417,502 | ||||||
Series B, (3-mo. USD LIBOR + 5.640%), 7.13%(a)(b) | 968,244 | 21,998,504 | ||||||
Series C, (3-mo. USD LIBOR + 4.969%), 6.38%, NVS(a)(b) | 1,367,434 | 27,006,821 | ||||||
Series D, (5 year CMT + 6.223%), 7.00%, NVS(a)(b) | 1,599,357 | 32,738,838 | ||||||
TPG RE Finance Trust, Inc., Series C, 6.25%, NVS(b) | 693,578 | 11,076,441 | ||||||
Two Harbors Investment Corp. | ||||||||
Series A, (3-mo. USD LIBOR + 5.660%), 8.13%, NVS(a)(b) | 442,978 | 9,360,125 | ||||||
Series B, (3-mo. USD LIBOR + 5.352%), 7.63%, NVS(a)(b) | 902,714 | 18,126,497 | ||||||
Series C, (3-mo. USD LIBOR + 5.011%), 7.25%, NVS(a)(b) | 858,518 | 18,054,634 | ||||||
|
| |||||||
798,761,618 | ||||||||
Multi-Utilities — 3.6% | ||||||||
Algonquin Power & Utilities Corp. | 1,977,704 | 42,698,629 | ||||||
(3-mo. USD LIBOR + 3.677%), 6.88%(a) | 988,732 | 25,281,877 | ||||||
Series 19-A, (3-mo. USD LIBOR + 4.010%), 6.20%, NVS(a) | 1,203,778 | 29,528,674 | ||||||
Brookfield Infrastructure Partners LP | ||||||||
Series 13, 5.13%, NVS(b) | 687,881 | 11,996,645 | ||||||
Series 14, 5.00%, NVS(b) | 679,060 | 11,306,349 |
10 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Multi-Utilities (continued) | ||||||||
CMS Energy Corp. | 2,166,875 | $ | 49,924,800 | |||||
5.88%, NVS | 963,008 | 21,725,461 | ||||||
5.63% | 687,861 | 15,428,722 | ||||||
Series C, 4.20%, NVS(b) | 791,061 | 15,678,829 | ||||||
DTE Energy Co. | 963,008 | 17,834,908 | ||||||
Series E, 5.25% | 1,375,814 | 30,680,652 | ||||||
Series G, 4.38% | 791,061 | 15,275,388 | ||||||
NiSource, Inc. | 741,637 | 72,272,526 | ||||||
Series B, (5 year CMT + 3.632%), | 1,719,704 | 43,164,571 | ||||||
Sempra, 5.75% | 2,605,352 | 59,375,972 | ||||||
|
| |||||||
462,174,003 | ||||||||
Office REITs — 0.9% | ||||||||
City Office REIT, Inc., Series A, 6.63%, NVS(b) | 395,681 | 5,907,518 | ||||||
Equity Commonwealth, Series D, 6.50%, NVS(b)(d) | 422,620 | 10,569,726 | ||||||
Hudson Pacific Properties, Inc., Series C, 4.75%, NVS(b) | 1,461,786 | 18,184,618 | ||||||
Office Properties Income Trust, 6.38% | 566,059 | 7,839,917 | ||||||
SL Green Realty Corp., Series I, 6.50%, NVS(b) | 688,557 | 13,013,727 | ||||||
Vornado Realty Trust | ||||||||
Series L, 5.40%, NVS(b) | 1,031,835 | 14,910,016 | ||||||
Series M, 5.25%, NVS(b) | 1,098,897 | 16,065,874 | ||||||
Series N, 5.25%, NVS(b) | 1,031,835 | 15,044,154 | ||||||
Series O, 4.45%, NVS(b) | 1,031,835 | 12,887,619 | ||||||
|
| |||||||
114,423,169 | ||||||||
Oil, Gas & Consumable Fuels — 2.6% | ||||||||
DCP Midstream LP, Series C, (3-mo. USD LIBOR + 4.882%), 7.95%, NVS(a)(b) | 380,417 | 9,491,404 | ||||||
El Paso Energy Capital Trust I, 4.75%(d) | 379,311 | 17,224,513 | ||||||
Energy Transfer LP | ||||||||
Series C, (3-mo. USD LIBOR + 4.530%), 10.16%, NVS(a)(b) | 1,547,760 | 39,467,880 | ||||||
Series D, (3-mo. USD LIBOR + 4.738%), 10.36%, NVS(a)(b) | 1,530,533 | 39,334,698 | ||||||
Series E, (3-mo. USD LIBOR + 5.161%), 7.60%, NVS(a)(b) | 2,751,539 | 67,220,098 | ||||||
NGL Energy Partners LP, Series B, (3-mo. USD LIBOR + 7.213%), 12.78%, NVS(a)(b) | 1,082,234 | 27,272,297 | ||||||
NuStar Energy LP | ||||||||
Series A, (3-mo. CME Term SOFR + 7.028%), 12.44%, NVS(a)(b) | 779,073 | 20,068,920 | ||||||
Series B, (3-mo. CME Term SOFR + 5.905%), 11.32%, NVS(a)(b) | 1,324,206 | 33,833,463 | ||||||
Series C, (3-mo. USD LIBOR + 6.880%), 12.55%, NVS(a)(b) | 593,277 | 15,300,614 | ||||||
NuStar Logistics LP, (3-mo. CME Term SOFR + 6.996%), 12.30%(a) | 1,384,389 | 35,592,641 | ||||||
Seapeak LLC | 424,957 | 10,283,959 | ||||||
Series B, (3-mo. USD LIBOR + 6.241%), 8.50%, NVS(a)(b) | 584,744 | 14,080,636 | ||||||
|
| |||||||
329,171,123 | ||||||||
Professional Services — 0.3% | ||||||||
Clarivate PLC, Series A, 5.25%(d) | 1,236,064 | 36,130,151 | ||||||
|
| |||||||
Real Estate Management & Development — 1.0% | ||||||||
Brookfield Property Partners LP | ||||||||
Series A, 5.75%, NVS(b) | 988,872 | 12,598,229 | ||||||
Series A-1, 6.50%, NVS(b) | 627,516 | 8,791,499 |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
Brookfield Property Partners LP | ||||||||
Series A2, 6.38%, NVS(b) | 848,366 | $ | 11,452,941 | |||||
Brookfield Property Preferred LP, 6.25% | 2,308,258 | 32,084,786 | ||||||
DigitalBridge Group, Inc. | ||||||||
Series H, 7.13%, NVS(b) | 721,831 | �� | 15,808,099 | |||||
Series I, 7.15%, NVS(b) | 1,106,382 | 23,565,937 | ||||||
Series J, 7.13%, NVS(b) | 998,585 | 21,569,436 | ||||||
|
| |||||||
125,870,927 | ||||||||
Residential REITs — 0.3% | ||||||||
American Homes 4 Rent | ||||||||
Series G, 5.88%, NVS(b) | 398,620 | 8,669,985 | ||||||
Series H, 6.25%, NVS(b) | 397,857 | 8,955,761 | ||||||
UMH Properties, Inc., Series D, 6.38%, NVS(b) | 911,568 | 19,161,159 | ||||||
|
| |||||||
36,786,905 | ||||||||
Retail REITs — 0.9% | ||||||||
Agree Realty Corp., Series A, 4.25%, NVS(b) | 601,891 | 10,075,655 | ||||||
Cedar Realty Trust, Inc., Series C, 6.50%, NVS(b) | 437,606 | 5,579,476 | ||||||
Federal Realty Investment Trust, Series C, 5.00%, NVS(b)(c) | 515,917 | 10,333,818 | ||||||
Kimco Realty Corp. | ||||||||
Series L, 5.13%, NVS(b) | 765,463 | 16,204,852 | ||||||
Series M, 5.25%, NVS(b) | 899,901 | 19,410,865 | ||||||
Regency Centers Corp. | ||||||||
Series A, 6.25%, NVS(b)(c) | 395,619 | 9,692,665 | ||||||
Series B, 5.88%, NVS(b) | 378,687 | 9,046,832 | ||||||
Saul Centers, Inc., Series E, 6.00%, NVS(b) | 380,228 | 8,022,811 | ||||||
SITE Centers Corp., Series A, 6.38%, NVS(b) | 601,891 | 13,711,077 | ||||||
Spirit Realty Capital, Inc., Series A, 6.00%, NVS(b) | 593,277 | 12,494,414 | ||||||
|
| |||||||
114,572,465 | ||||||||
Software — 0.1% | ||||||||
Synchronoss Technologies, Inc., 8.38% | 485,596 | 8,934,966 | ||||||
|
| |||||||
Specialized REITs — 3.0% | ||||||||
CorEnergy Infrastructure Trust, Inc., Series A, 7.38%, NVS(b) | 445,658 | 2,272,856 | ||||||
Digital Realty Trust, Inc. | ||||||||
Series J, 5.25%, NVS(b) | 687,861 | 13,991,093 | ||||||
Series K, 5.85%, NVS(b)(c) | 722,315 | 16,244,864 | ||||||
Series L, 5.20%, NVS(b) | 1,186,632 | 24,029,298 | ||||||
EPR Properties, Series G, 5.75%, NVS(b) | 515,917 | 9,580,579 | ||||||
Gladstone Land Corp., Series B, 6.00%(b) | 512,129 | 9,269,535 | ||||||
National Storage Affiliates Trust, Series A, 6.00%, NVS(b) | 775,358 | 17,406,787 | ||||||
Public Storage Operating Co. | ||||||||
Series F, 5.15%, NVS(b)(c) | 963,008 | 21,937,322 | ||||||
Series G, 5.05%, NVS(b)(c) | 1,031,835 | 23,866,344 | ||||||
Series H, 5.60%(b)(c) | 980,235 | 23,809,908 | ||||||
Series I, 4.88%, NVS(b) | 1,087,704 | 22,917,923 | ||||||
Series J, 4.70%, NVS(b)(c) | 889,997 | 17,417,241 | ||||||
Series K, 4.75%, NVS(b) | 791,061 | 15,607,633 | ||||||
Series L, 4.63%, NVS(b) | 1,943,321 | 38,283,424 | ||||||
Series M, 4.13%, NVS(b)(c) | 791,061 | 14,215,366 | ||||||
Series N, 3.88%, NVS(b)(c) | 971,621 | 16,090,044 | ||||||
Series O, 3.90%, NVS(b) | 584,744 | 9,847,089 | ||||||
Series P, 4.00%, NVS(b) | 2,076,552 | 36,028,177 | ||||||
Series Q, 3.95%, NVS(b) | 494,427 | 8,251,987 | ||||||
Series R, 4.00%, NVS(b) | 1,496,160 | 25,704,029 | ||||||
Series S, 4.10%, NVS(b)(c) | 859,911 | 14,601,289 | ||||||
|
| |||||||
381,372,788 |
S C H E D U L E O F I N V E S T M E N T S | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods — 0.1% | ||||||||
Fossil Group, Inc., 7.00% | 517,495 | $ | 8,569,717 | |||||
|
| |||||||
Trading Companies & Distributors — 1.3% | ||||||||
Air Lease Corp., Series A, (3-mo. CME Term SOFR + 3.912%), 6.15%, NVS(a)(b) | 859,888 | 20,637,312 | ||||||
FTAI Aviation Ltd. | ||||||||
Series A, NVS, (3-mo. USD LIBOR + 6.886%), 8.25%(a)(b) | 364,159 | 8,233,635 | ||||||
Series B, NVS, (3-mo. USD LIBOR + 6.447%), 8.00%(a)(b) | 426,153 | 9,660,888 | ||||||
Series C, NVS, (5 year CMT + 7.378%), 8.25%(a)(b) | 365,850 | 8,414,550 | ||||||
Textainer Group Holdings Ltd. | ||||||||
(5 year CMT + 6.134%), 7.00%, NVS(a)(b) | 515,917 | 12,242,710 | ||||||
Series B, 6.25%, NVS(b) | 517,385 | 9,700,969 | ||||||
Triton International Ltd. | 494,427 | 12,044,242 | ||||||
7.38%, NVS(b) | 601,891 | 13,674,964 | ||||||
6.88%, NVS(b) | 515,917 | 11,948,638 | ||||||
Series E, 5.75%, NVS(b) | 601,891 | 10,948,397 | ||||||
WESCO International, Inc., Series A, (5 year CMT + 10.325%), 10.63%, NVS(a)(b) | 1,851,796 | 48,905,932 | ||||||
|
| |||||||
166,412,237 | ||||||||
Transportation Infrastructure — 0.3% | ||||||||
Atlas Corp. | ||||||||
Series D, 7.95%(b) | 438,640 | 10,281,722 | ||||||
Series H, 7.88%, NVS(b) | 776,003 | 17,405,747 | ||||||
Series I, (3-mo. USD LIBOR + 5.008%), 8.00%(a)(b) | 508,915 | 12,733,053 | ||||||
|
| |||||||
40,420,522 | ||||||||
Wireless Telecommunication Services — 1.1% | ||||||||
Telephone & Data Systems, Inc. | ||||||||
Series UU, 6.63%, NVS(b)(c) | 1,444,560 | 22,751,820 | ||||||
Series VV, 6.00%, NVS(b) | 2,373,195 | 32,394,112 |
Security | Shares | Value | ||||||
Wireless Telecommunication Services (continued) | ||||||||
United States Cellular Corp. | 1,719,704 | $ | 31,212,627 | |||||
5.50% | 1,719,704 | 28,306,328 | ||||||
5.50% | 1,719,704 | 28,048,372 | ||||||
|
| |||||||
142,713,259 | ||||||||
|
| |||||||
Total Long-Term Investments — 98.6% | 12,544,985,058 | |||||||
|
| |||||||
Short-Term Securities |
| |||||||
Money Market Funds — 4.0% |
| |||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(e)(f)(g) | 42,760,107 | 42,777,211 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(e)(f) | 459,762,828 | 459,762,828 | ||||||
|
| |||||||
Total Short-Term Securities — 4.0% |
| 502,540,039 | ||||||
|
| |||||||
Total Investments — 102.6% |
| 13,047,525,097 | ||||||
Liabilities in Excess of Other Assets — (2.6)% |
| (326,545,561 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 12,720,979,536 | |||||
|
|
(a) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(b) | Perpetual security with no stated maturity date. |
(c) | All or a portion of this security is on loan. |
(d) | Convertible security. |
(e) | Affiliate of the Fund. |
(f) | Annualized 7-day yield as of period end. |
(g) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at | Income | Capital Gain | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 175,105,163 | $ | — | $ (132,329,811 | )(a) | $ | 56,956 | $ | (55,097 | ) | $ | 42,777,211 | 42,760,107 | $ | 1,126,273 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 231,214,441 | 228,548,387 | (a) | — | — | — | 459,762,828 | 459,762,828 | 3,958,468 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 56,956 | $ | (55,097 | ) | $ | 502,540,039 | $ | 5,084,741 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
12 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Preferred and Income Securities ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Preferred Securities | ||||||||||||||||
Preferred Stocks | $ | 12,401,214,159 | $ | 143,770,899 | $ | — | $ | 12,544,985,058 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 502,540,039 | — | — | 502,540,039 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 12,903,754,198 | $ | 143,770,899 | $ | — | $ | 13,047,525,097 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 13 |
Statement of Assets and Liabilities (unaudited)
September 30, 2023
iShares Preferred and Income Securities ETF | ||||
| ||||
ASSETS |
| |||
Investments, at value — unaffiliated(a)(b) | $ | 12,544,985,058 | ||
Investments, at value — affiliated(c) | 502,540,039 | |||
Cash | 406,677 | |||
Receivables: | ||||
Investments sold | 20,219,335 | |||
Securities lending income — affiliated | 164,774 | |||
Capital shares sold | 213,059 | |||
Dividends — unaffiliated | 67,859,222 | |||
Dividends — affiliated | 1,079,778 | |||
|
| |||
Total assets | 13,137,467,942 | |||
|
| |||
LIABILITIES |
| |||
Collateral on securities loaned | 42,647,321 | |||
Payables: | ||||
Investments purchased | 367,717,990 | |||
Capital shares redeemed | 1,264,034 | |||
Investment advisory fees | 4,859,061 | |||
|
| |||
Total liabilities | 416,488,406 | |||
|
| |||
Commitments and contingent liabilities | ||||
NET ASSETS | $ | 12,720,979,536 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 17,708,862,145 | ||
Accumulated loss | (4,987,882,609 | ) | ||
|
| |||
NET ASSETS | $ | 12,720,979,536 | ||
|
| |||
NET ASSET VALUE | ||||
Shares outstanding | 421,750,000 | |||
|
| |||
Net asset value | $ | 30.16 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Investments, at cost — unaffiliated | $ | 15,390,530,967 | ||
(b) Securities loaned, at value | $ | 41,565,465 | ||
(c) Investments, at cost — affiliated | $ | 502,509,894 |
See notes to financial statements.
14 | 2 0 2 3 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statement of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Preferred and | ||||
| ||||
INVESTMENT INCOME | ||||
Dividends — unaffiliated | $ | 453,275,696 | ||
Dividends — affiliated | 3,958,468 | |||
Securities lending income — affiliated — net | 1,126,273 | |||
Foreign taxes withheld | (722,196 | ) | ||
|
| |||
Total investment income | 457,638,241 | |||
|
| |||
EXPENSES | ||||
Investment advisory | 29,620,836 | |||
Interest expense | 81,842 | |||
|
| |||
Total expenses | 29,702,678 | |||
|
| |||
Net investment income | 427,935,563 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — unaffiliated | (242,780,430 | ) | ||
Investments — affiliated | 56,956 | |||
In-kind redemptions — unaffiliated(a) | 7,522,459 | |||
|
| |||
(235,201,015 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — unaffiliated | (214,295,043 | ) | ||
Investments — affiliated | (55,097 | ) | ||
|
| |||
(214,350,140 | ) | |||
|
| |||
Net realized and unrealized loss | (449,551,155 | ) | ||
|
| |||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (21,615,592) | ||
|
|
(a) See Note 2 of the Notes to Financial Statements.
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 15 |
Statements of Changes in Net Assets
iShares Preferred and Income Securities ETF | ||||||||
|
| |||||||
Six Months Ended (unaudited) | Year Ended 03/31/23 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 427,935,563 | $ | 851,776,239 | ||||
Net realized loss | (235,201,015 | ) | (249,407,839 | ) | ||||
Net change in unrealized appreciation (depreciation) | (214,350,140 | ) | (2,167,214,408 | ) | ||||
|
|
|
| |||||
Net decrease in net assets resulting from operations | (21,615,592 | ) | (1,564,846,008 | ) | ||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (416,486,617 | ) | (887,370,473 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from capital share transactions | 177,112,880 | (2,277,562,637 | ) | |||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total decrease in net assets | (260,989,329 | ) | (4,729,779,118 | ) | ||||
Beginning of period | 12,981,968,865 | 17,711,747,983 | ||||||
|
|
|
| |||||
End of period | $ | 12,720,979,536 | $ | 12,981,968,865 | ||||
|
|
|
|
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
See notes to financial statements.
16 | 2 0 2 3 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares Preferred and Income Securities ETF
| ||||||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited) | | | Year Ended 03/31/23 | | | Year Ended 03/31/22 | | | Year Ended 03/31/21 | | | Year Ended 03/31/20 | | | Year Ended 03/31/19 | | |||||||
Net asset value, beginning of period | $ | 31.18 | $ | 36.39 | $ | 38.27 | $ | 31.50 | $ | 36.47 | $ | 37.54 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.02 | 1.90 | 1.75 | 1.81 | 1.93 | 2.10 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.05 | ) | (5.13 | ) | (1.94 | ) | 6.78 | (4.93 | ) | (1.02 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.03 | ) | (3.23 | ) | (0.19 | ) | 8.59 | (3.00 | ) | 1.08 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(c) | (0.99 | ) | (1.98 | ) | (1.69 | ) | (1.82 | ) | (1.97 | ) | (2.15 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 30.16 | $ | 31.18 | $ | 36.39 | $ | 38.27 | $ | 31.50 | $ | 36.47 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | (0.13 | )%(e) | (8.99 | )% | (0.67 | )% | 27.88 | % | (8.90 | )% | 3.01 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.46 | %(g) | 0.46 | % | 0.45 | % | 0.46 | % | 0.46 | % | 0.46 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 6.65 | %(g) | 5.80 | % | 4.56 | % | 4.97 | % | 5.25 | % | 5.73 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 12,720,980 | $ | 12,981,969 | $ | 17,711,748 | $ | 18,364,340 | $ | 13,816,631 | $ | 14,370,721 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h) | 13 | % | 16 | % | 21 | % | 28 | % | 46 | % | 28 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 17 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust” is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following fund (the “Fund”):
iShares ETF | Diversification Classification | |
Preferred and Income Securities | Diversified |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Taxes: The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividend are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statement of Assets and Liabilities.
The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable tax laws, payment history and market convention. The Statement of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains and losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividend and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.
Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of the Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
18 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 - Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access; |
• | Level 2 - Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• | Level 3 - Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the 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 judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: The 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 the 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, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statement of Assets and Liabilities.
Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
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 | 19 |
Notes to Financial Statements (unaudited) (continued)
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | | Securities Loaned at Value | | | Cash Collateral Received | | | Non-Cash Collateral Received, at Fair Value | (a) | | Net Amount | (b) | ||||
| ||||||||||||||||
Barclays Capital, Inc. | $ | 1,642,585 | $ | (1,642,585 | ) | $ | — | $ | — | |||||||
BMO Capital Markets Corp. | 15,166 | (15,166 | ) | — | — | |||||||||||
BNP Paribas SA | 1,285,270 | (1,285,270 | ) | — | — | |||||||||||
BofA Securities, Inc. | 4,769,563 | (4,769,563 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 12,960,944 | (12,960,944 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 15,196,818 | (15,196,818 | ) | — | — | |||||||||||
Morgan Stanley | 1,132,540 | (1,132,540 | ) | — | — | |||||||||||
National Financial Services LLC | 3,454 | (3,454 | ) | — | — | |||||||||||
RBC Capital Market LLC | 1,036,455 | (1,036,455 | ) | — | — | |||||||||||
SG Americas Securities LLC | 14,325 | (14,325 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 783,365 | (783,365 | ) | — | — | |||||||||||
UBS AG | 4,712 | (4,700 | ) | — | 12 | |||||||||||
UBS Securities LLC | 791,606 | (791,606 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. | 1,928,662 | (1,928,662 | ) | — | — | |||||||||||
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$ | 41,565,465 | $ | (41,565,453 | ) | $ | — | $ | 12 | ||||||||
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(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statement of Assets and Liabilities. |
(b) | The market value of the loaned securities is determined as of September 30, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. The 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 the 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 the 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 Fund, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees | |||
First $46 billion | 0.4800 | % | ||
Over $46 billion, up to and including $81 billion | 0.4560 | |||
Over $81 billion, up to and including $111 billion | 0.4332 | |||
Over $111 billion, up to and including $141 billion | 0.4116 | |||
Over $141 billion, up to and including $171 billion | 0.3910 | |||
Over $171 billion | 0.3714 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.
ETF Servicing Fees: The Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Fund does not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The
20 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded fund (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by the Fund is shown as securities lending income - affiliated - net in its Statement of Operations. For the six months ended September 30, 2023, the Fund paid BTC $277,437 for securities lending agent services.
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
The 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 September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Preferred and Income Securities | $ | 1,681,847,741 | $ | 1,681,056,607 |
For the six months ended September 30, 2023, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Preferred and Income Securities | $ | 673,584,240 | $ | 501,989,512 |
7. | INCOME TAX INFORMATION |
The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Fund as of March 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
As of March 31, 2023, the Fund had non-expiring capital loss carryforwards of $1,946,804,348 available to offset future realized capital gains.
As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
| ||||||||||||||||
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Preferred and Income Securities | $ | 15,917,467,940 | $ | 40,687,964 | $ | (2,910,630,807 | ) | $ | (2,869,942,843) | |||||||
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8. | PRINCIPAL RISKS |
In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war,
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 | 21 |
Notes to Financial Statements (unaudited) (continued)
acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The 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 the Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Fund manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.
The Fund invests a significant portion of its assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the the Fund invest.
The Fund invests a significant portion of its assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
LIBOR Transition Risk: The Fund may be exposed to financial instruments that recently transitioned from, or continue to be tied to the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, financing terms, hedging strategies or investment value. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has ceased publishing all LIBOR settings, but some USD LIBOR settings will continue to be published under a synthetic methodology until September 30, 2024 for certain legacy contracts. The Secured Overnight Financing Rate (“SOFR”) has been used increasingly on a voluntary basis in new instruments and transactions. Under U.S. regulations that implement a statutory fallback mechanism to replace LIBOR, benchmark rates based on SOFR have replaced LIBOR in certain financial contracts. The ultimate effect of the LIBOR transition process on the Fund is uncertain.
9. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by the 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 the Fund are not redeemable.
22 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Preferred and Income Securities | ||||||||||||||||
Shares sold | 22,800,000 | $ | 700,648,582 | 19,150,000 | $ | 629,044,759 | ||||||||||
Shares redeemed | (17,350,000 | ) | (523,535,702 | ) | (89,600,000 | ) | (2,906,607,396 | ) | ||||||||
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5,450,000 | $ | 177,112,880 | (70,450,000 | ) | $ | (2,277,562,637 | ) | |||||||||
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The consideration of the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shared sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statement of Assets and Liabilities.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Fund 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.
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 | 23 |
Board Review and Approval of Investment Advisory Contract
iShares Preferred and Income Securities ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds,
24 | B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
Board Review and Approval of Investment Advisory Contract
noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T ME N T AD V I S O R Y C O N T R A C T | 25 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||
Preferred and Income Securities(a) | $ | 0.949418 | $ | — | $ | 0.040930 | $ | 0.990348 | 96 | % | — | % | 4 | % | 100 | % |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
26 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT are available on the SEC’s website at sec.gov. Additionally, the Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
G E N E R A L I N F O R M A T I O N | 27 |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
CMT | Constant Maturity Treasury | |
LIBOR | London Interbank Offered Rate | |
LP | Limited Partnership | |
NVS | Non-Voting Shares | |
REIT | Real Estate Investment Trust | |
SOFR | Secured Overnight Financing Rate |
28 | 2 0 2 3 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by ICE Data Indices, LLC, 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.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-309-0923
SEPTEMBER 30, 2023 |
2023 Semi-Annual Report (Unaudited)
|
iShares Trust
· | iShares Core S&P Mid-Cap ETF | IJH | NYSE Arca |
· | iShares Core S&P Small-Cap ETF | IJR | NYSE Arca |
· | iShares Core S&P U.S. Growth ETF | IUSG | NASDAQ |
· | iShares Core S&P U.S. Value ETF | IUSV | NASDAQ |
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023 | ||||
6-Month
|
12-Month
| |||
U.S. large cap equities | 5.18% | 21.62% | ||
U.S. small cap equities | (0.19) | 8.93 | ||
International equities | (1.28) | 25.65 | ||
Emerging market equities (MSCI Emerging Markets Index) | (2.05) | 11.70 | ||
3-month Treasury bills | 2.50 | 4.47 | ||
U.S. Treasury securities | (6.98) | (2.90) | ||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index) | (4.05) | 0.64 | ||
Tax-exempt municipal bonds (Bloomberg Municipal Bond Index) | (4.05) | 2.66 | ||
U.S. high yield bonds | 2.22 | 10.28 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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Fund Summary as of September 30, 2023 | iShares® Core S&P Mid-Cap ETF |
Investment Objective
The iShares Core S&P Mid-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities, as represented by the S&P MidCap 400® (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 | |||||||||||||||||||||||||||
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6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 0.43 | % | 15.49 | % | 6.01 | % | 8.88 | % | 15.49 | % | 33.91 | % | 134.13 | % | ||||||||||||||
Fund Market | 0.43 | 15.54 | 6.01 | 8.88 | 15.54 | 33.87 | 134.12 | |||||||||||||||||||||
Index | 0.45 | 15.51 | 6.06 | 8.94 | 15.51 | 34.20 | 135.50 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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| Beginning Account Value | | | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value | | | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||
$ | 1,000.00 | $ 1,004.30 | $ 0.25 | $ 1,000.00 | $ 1,024.75 | $ 0.25 | 0.05 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Industrials | 22.4 | % | ||
Consumer Discretionary | 14.6 | |||
Financials | 14.5 | |||
Information Technology | 10.5 | |||
Health Care | 8.4 | |||
Real Estate | 7.3 | |||
Materials | 7.0 | |||
Energy | 5.9 | |||
Consumer Staples | 4.3 | |||
Utilities | 3.4 | |||
Communication Services | 1.7 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Hubbell, Inc. | 0.7 | % | ||
Jabil, Inc. | 0.7 | |||
Builders FirstSource, Inc. | 0.7 | |||
Reliance Steel & Aluminum Co. | 0.7 | |||
Deckers Outdoor Corp. | 0.6 | |||
Carlisle Cos., Inc. | 0.6 | |||
Watsco, Inc. | 0.6 | |||
Super Micro Computer, Inc. | 0.6 | |||
Graco, Inc. | 0.5 | |||
Owens Corning | 0.5 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Investment Objective
The iShares Core S&P Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the S&P SmallCap 600® (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 | |||||||||||||||||||||||||||
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6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | (1.71 | )% | 10.04 | % | 3.16 | % | 8.11 | % | 10.04 | % | 16.81 | % | 118.03 | % | ||||||||||||||
Fund Market | (1.62 | ) | 9.96 | 3.15 | 8.11 | 9.96 | 16.78 | 118.06 | ||||||||||||||||||||
Index | (1.71 | ) | 10.08 | 3.21 | 8.15 | 10.08 | 17.11 | 118.87 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||
$ | 1,000.00 | $ 982.90 | $ 0.30 | $ 1,000.00 | $ 1,024.70 | $ 0.30 | 0.06 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Industrials | 17.5 | % | ||
Financials | 17.1 | |||
Consumer Discretionary | 14.0 | |||
Information Technology | 13.0 | |||
Health Care | 10.0 | |||
Real Estate | 7.7 | |||
Energy | 5.4 | |||
Materials | 5.3 | |||
Consumer Staples | 5.2 | |||
Communication Services | 2.9 | |||
Utilities | 1.9 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Onto Innovation, Inc. | 0.7 | % | ||
SPS Commerce, Inc. | 0.6 | |||
Comfort Systems U.S.A., Inc. | 0.6 | |||
Rambus, Inc. | 0.6 | |||
Fabrinet | 0.6 | |||
elf Beauty, Inc. | 0.6 | |||
Applied Industrial Technologies, Inc. | 0.6 | |||
Axcelis Technologies, Inc. | 0.6 | |||
ATI, Inc. | 0.5 | |||
Ensign Group, Inc. (The) | 0.5 |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Fund Summary as of September 30, 2023 | iShares® Core S&P U.S. Growth ETF |
Investment Objective
The iShares Core S&P U.S. Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-and mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the S&P 900 Growth Index™ (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 7.39 | % | 19.62 | % | 10.11 | % | 12.83 | % | 19.62 | % | 61.86 | % | 234.38% | |||||||||||||||||||
Fund Market | 7.48 | 19.71 | 10.12 | 12.83 | 19.71 | 61.90 | 234.41 | |||||||||||||||||||||||||
Index | 7.40 | 19.65 | 10.17 | 12.90 | 19.65 | 62.30 | 236.43 |
Index performance through January 22, 2017 reflects the performance of the Russell 3000® Growth Index. Index performance beginning on January 23, 2017 reflects the performance of the S&P 900 Growth IndexTM.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value | | | Ending Account Value | | | Expenses Paid During | | | Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 1,073.90 | $ 0.21 | $ 1,000.00 | $ 1,024.80 | $ 0.20 | 0.04 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION |
| |||
Sector | | Percent of Total Investments | (a) | |
Information Technology | 33.8 | % | ||
Health Care | 16.9 | |||
Consumer Discretionary | 10.5 | |||
Financials | 7.6 | |||
Communication Services | 7.5 | |||
Energy | 7.3 | |||
Industrials | 6.3 | |||
Consumer Staples | 6.2 | |||
Materials | 2.3 | |||
Real Estate | 1.0 | |||
Other (each representing less than 1%) | 0.6 |
TEN LARGEST HOLDINGS |
| |||
Security | | Percent of Total Investments | (a) | |
Apple Inc. | 12.1 | % | ||
Microsoft Corp. | 6.5 | |||
NVIDIA Corp. | 5.2 | |||
Alphabet, Inc., Class A | 3.7 | |||
Tesla, Inc. | 3.3 | |||
Alphabet, Inc., Class C, NVS | 3.2 | |||
Amazon.com, Inc. | 2.6 | |||
Exxon Mobil Corp. | 2.3 | |||
UnitedHealth Group, Inc. | 2.2 | |||
Eli Lilly & Co. | 2.1 |
(a) | Excludes money market funds. |
6 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of September 30, 2023 | iShares® Core S&P U.S. Value ETF |
Investment Objective
The iShares Core S&P U.S. Value ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics, as represented by the S&P 900 Value Index™ (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 2.07 | % | 21.67 | % | 8.25 | % | 9.54 | % | 21.67 | % | 48.62 | % | 148.66% | |||||||||||||||||||
Fund Market | 2.11 | 21.65 | 8.25 | 9.54 | 21.65 | 48.64 | 148.67 | |||||||||||||||||||||||||
Index | 2.08 | 21.71 | 8.26 | 9.58 | 21.71 | 48.71 | 149.65 |
Index performance through January 22, 2017 reflects the performance of the Russell 3000® Value Index. Index performance beginning on January 23, 2017 reflects the performance of the S&P 900 Value IndexTM.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio | | ||||||||||
$ 1,000.00 | $ 1,020.70 | $ 0.20 | $ 1,000.00 | $ 1,024.80 | $ 0.20 | 0.04 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION |
| |||
Sector | | Percent of Total Investments | (a) | |
Financials | 19.4 | % | ||
Information Technology | 17.6 | |||
Industrials | 12.6 | |||
Consumer Discretionary | 11.4 | |||
Communication Services | 9.6 | |||
Health Care | 8.4 | |||
Consumer Staples | 6.7 | |||
Utilities | 4.7 | |||
Real Estate | 4.6 | |||
Materials | 3.3 | |||
Energy | 1.7 |
TEN LARGEST HOLDINGS |
| |||
Security | | Percent of Total Investments | (a) | |
Microsoft Corp. | 5.7 | % | ||
Meta Platforms, Inc., Class A | 3.9 | |||
Berkshire Hathaway, Inc., Class B | 3.7 | |||
Amazon.com, Inc. | 3.6 | |||
JPMorgan Chase & Co. | 2.4 | |||
Walmart, Inc. | 1.3 | |||
Cisco Systems, Inc. | 1.3 | |||
Salesforce, Inc. | 1.2 | |||
Bank of America Corp. | 1.1 | |||
Comcast Corp., Class A | 1.1 |
(a) | Excludes money market funds. |
FUND SUMMARY | 7 |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
8 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Core S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.2% | ||||||||
BWX Technologies, Inc. | 2,860,621 | $ | 214,489,362 | |||||
Curtiss-Wright Corp. | 1,197,998 | 234,364,349 | ||||||
Hexcel Corp. | 2,641,694 | 172,079,947 | ||||||
Woodward, Inc. | 1,889,587 | 234,800,081 | ||||||
|
| |||||||
855,733,739 | ||||||||
Air Freight & Logistics — 0.3% | ||||||||
GXO Logistics, Inc.(a)(b) | 3,719,752 | 218,163,455 | ||||||
|
| |||||||
Automobile Components — 1.7% | ||||||||
Adient PLC(a) | 2,929,145 | 107,499,621 | ||||||
Autoliv, Inc. | 2,376,466 | 229,281,440 | ||||||
Fox Factory Holding Corp.(a)(b) | 1,325,069 | 131,287,837 | ||||||
Gentex Corp. | 7,300,767 | 237,566,958 | ||||||
Goodyear Tire & Rubber Co. (The)(a)(b) | 8,865,811 | 110,202,031 | ||||||
Lear Corp. | 1,837,326 | 246,569,149 | ||||||
Visteon Corp.(a)(b) | 881,930 | 121,768,075 | ||||||
|
| |||||||
1,184,175,111 | ||||||||
Automobiles — 0.4% | ||||||||
Harley-Davidson, Inc. | 4,032,478 | 133,313,723 | ||||||
Thor Industries, Inc.(b) | 1,667,220 | 158,602,638 | ||||||
|
| |||||||
291,916,361 | ||||||||
Banks — 5.1% | ||||||||
Associated Banc-Corp. | 4,720,090 | 80,760,740 | ||||||
Bank OZK | 3,290,932 | 121,994,849 | ||||||
Cadence Bank | 4,706,476 | 99,871,421 | ||||||
Columbia Banking System, Inc. | 6,523,108 | 132,419,093 | ||||||
Commerce Bancshares, Inc. | 3,549,020 | 170,281,980 | ||||||
Cullen/Frost Bankers, Inc. | 2,005,462 | 182,918,189 | ||||||
East West Bancorp, Inc. | 4,424,946 | 233,238,904 | ||||||
First Financial Bankshares, Inc.(b) | 4,017,833 | 100,927,965 | ||||||
First Horizon Corp. | 17,432,219 | 192,103,053 | ||||||
FNB Corp. | 11,222,213 | 121,087,678 | ||||||
Glacier Bancorp, Inc. | 3,467,642 | 98,827,797 | ||||||
Hancock Whitney Corp. | 2,693,611 | 99,636,671 | ||||||
Home BancShares, Inc. | 5,892,265 | 123,384,029 | ||||||
International Bancshares Corp. | 1,668,914 | 72,330,733 | ||||||
New York Community Bancorp, Inc., Class A | 22,595,579 | 256,233,866 | ||||||
Old National Bancorp | 9,150,791 | 133,052,501 | ||||||
Pinnacle Financial Partners, Inc.(b) | 2,400,656 | 160,939,978 | ||||||
Prosperity Bancshares, Inc. | 2,931,178 | 159,983,695 | ||||||
SouthState Corp. | 2,377,106 | 160,121,860 | ||||||
Synovus Financial Corp. | 4,571,408 | 127,085,142 | ||||||
Texas Capital Bancshares, Inc.(a)(b) | 1,501,243 | 88,423,213 | ||||||
UMB Financial Corp. | 1,365,699 | 84,741,623 | ||||||
United Bankshares, Inc. | 4,220,124 | 116,433,221 | ||||||
Valley National Bancorp | 13,336,181 | 114,157,709 | ||||||
Webster Financial Corp. | 5,418,592 | 218,423,444 | ||||||
Wintrust Financial Corp. | 1,914,420 | 144,538,710 | ||||||
|
| |||||||
3,593,918,064 | ||||||||
Beverages — 0.7% | ||||||||
Boston Beer Co., Inc. (The), Class A, NVS(a)(b) | 295,634 | 115,158,312 | ||||||
Celsius Holdings, Inc.(a)(b) | 1,539,062 | 264,103,039 | ||||||
Coca-Cola Consolidated, Inc.(b) | 146,576 | 93,269,241 | ||||||
|
| |||||||
472,530,592 | ||||||||
Biotechnology — 1.6% | ||||||||
Arrowhead Pharmaceuticals, Inc.(a)(b) | 3,352,487 | 90,081,326 | ||||||
Exelixis, Inc.(a)(b) | 9,957,442 | 217,570,108 | ||||||
Halozyme Therapeutics, Inc.(a)(b) | 4,125,861 | 157,607,890 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Neurocrine Biosciences, Inc.(a) | 3,054,090 | $ | 343,585,125 | |||||
United Therapeutics Corp.(a)(b) | 1,467,841 | 331,541,246 | ||||||
|
| |||||||
1,140,385,695 | ||||||||
Broadline Retail — 0.5% | ||||||||
Kohl’s Corp. | 3,458,760 | 72,495,610 | ||||||
Macy’s, Inc. | 8,523,441 | 98,957,150 | ||||||
Nordstrom, Inc. | 3,030,458 | 45,275,043 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.(a)(b) | 1,932,747 | 149,169,413 | ||||||
|
| |||||||
365,897,216 | ||||||||
Building Products — 3.9% | ||||||||
Advanced Drainage Systems, Inc.(b) | 2,165,778 | 246,530,510 | ||||||
Builders FirstSource, Inc.(a)(b) | 3,910,562 | 486,825,863 | ||||||
Carlisle Cos., Inc. | 1,561,229 | 404,764,231 | ||||||
Fortune Brands Innovations, Inc. | 3,968,546 | 246,684,819 | ||||||
Lennox International, Inc. | 999,638 | 374,304,453 | ||||||
Owens Corning | 2,809,580 | 383,254,808 | ||||||
Simpson Manufacturing Co., Inc. | 1,334,608 | 199,937,625 | ||||||
Trex Co., Inc.(a)(b) | 3,395,334 | 209,254,434 | ||||||
UFP Industries, Inc. | 1,934,843 | 198,127,923 | ||||||
|
| |||||||
2,749,684,666 | ||||||||
Capital Markets — 2.2% | ||||||||
Affiliated Managers Group, Inc.(b) | 1,096,103 | 142,866,065 | ||||||
Evercore, Inc., Class A | 1,090,217 | 150,319,120 | ||||||
Federated Hermes, Inc., Class B | 2,754,591 | 93,297,997 | ||||||
Interactive Brokers Group, Inc., Class A(b) | 3,345,575 | 289,592,972 | ||||||
Janus Henderson Group PLC | 4,144,795 | 107,018,607 | ||||||
Jefferies Financial Group, Inc. | 5,527,386 | 202,468,149 | ||||||
Morningstar, Inc. | 813,749 | 190,612,566 | ||||||
SEI Investments Co. | 3,146,041 | 189,486,049 | ||||||
Stifel Financial Corp. | 3,266,667 | 200,704,021 | ||||||
|
| |||||||
1,566,365,546 | ||||||||
Chemicals — 2.2% | ||||||||
Ashland, Inc. | 1,602,575 | 130,898,326 | ||||||
Avient Corp. | 2,848,580 | 100,611,846 | ||||||
Axalta Coating Systems Ltd.(a) | 6,933,783 | 186,518,763 | ||||||
Cabot Corp. | 1,749,443 | 121,183,917 | ||||||
Chemours Co. (The) | 4,628,931 | 129,841,514 | ||||||
NewMarket Corp. | 215,180 | 97,915,507 | ||||||
Olin Corp.(b) | 3,935,238 | 196,683,195 | ||||||
RPM International, Inc. | 4,036,132 | 382,665,675 | ||||||
Scotts Miracle-Gro Co. (The) | 1,299,656 | 67,166,222 | ||||||
Westlake Corp.(b) | 998,360 | 124,465,541 | ||||||
|
| |||||||
1,537,950,506 | ||||||||
Commercial Services & Supplies — 1.3% | ||||||||
Brink’s Co. (The) | 1,451,984 | 105,472,118 | ||||||
Clean Harbors, Inc.(a)(b) | 1,575,035 | 263,597,858 | ||||||
MSA Safety, Inc. | 1,155,399 | 182,148,652 | ||||||
Stericycle, Inc.(a)(b) | 2,892,157 | 129,308,340 | ||||||
Tetra Tech, Inc. | 1,665,281 | 253,172,670 | ||||||
|
| |||||||
933,699,638 | ||||||||
Communications Equipment — 0.6% | ||||||||
Calix, Inc.(a) | 1,846,015 | 84,621,328 | ||||||
Ciena Corp.(a)(b) | 4,675,617 | 220,969,659 | ||||||
Lumentum Holdings, Inc.(a)(b) | 2,148,609 | 97,074,155 | ||||||
|
| |||||||
402,665,142 | ||||||||
Construction & Engineering — 1.8% | ||||||||
AECOM | 4,338,720 | 360,287,309 | ||||||
EMCOR Group, Inc. | 1,474,158 | 310,148,102 | ||||||
Fluor Corp.(a)(b) | 4,483,869 | 164,557,992 |
SCHEDULES OF INVESTMENTS | 9 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
MasTec, Inc.(a)(b) | 1,890,417 | $ | 136,053,311 | |||||
MDU Resources Group, Inc. | 6,368,827 | 124,701,633 | ||||||
Valmont Industries, Inc. | 657,187 | 157,862,889 | ||||||
|
| |||||||
1,253,611,236 | ||||||||
Construction Materials — 0.4% | ||||||||
Eagle Materials, Inc.(b) | 1,108,144 | 184,528,139 | ||||||
Knife River Corp.(a)(b) | 1,592,204 | 77,747,321 | ||||||
|
| |||||||
262,275,460 | ||||||||
Consumer Finance — 0.6% | ||||||||
Ally Financial, Inc. | 8,456,167 | 225,610,535 | ||||||
FirstCash Holdings, Inc. | 1,156,826 | 116,122,194 | ||||||
SLM Corp. | 7,070,737 | 96,303,438 | ||||||
|
| |||||||
438,036,167 | ||||||||
Consumer Staples Distribution & Retail — 2.0% | ||||||||
BJ’s Wholesale Club Holdings, Inc.(a)(b) | 4,202,423 | 299,926,929 | ||||||
Casey’s General Stores, Inc. | 1,169,381 | 317,510,329 | ||||||
Grocery Outlet Holding Corp.(a)(b) | 3,089,274 | 89,125,555 | ||||||
Performance Food Group Co.(a)(b) | 4,883,504 | 287,443,045 | ||||||
Sprouts Farmers Market, Inc.(a)(b) | 3,190,262 | 136,543,214 | ||||||
U.S. Foods Holding Corp.(a)(b) | 7,104,194 | 282,036,502 | ||||||
|
| |||||||
1,412,585,574 | ||||||||
Containers & Packaging — 1.9% | ||||||||
AptarGroup, Inc. | 2,052,813 | 256,683,738 | ||||||
Berry Global Group, Inc. | 3,693,606 | 228,671,147 | ||||||
Crown Holdings, Inc.(b) | 3,773,326 | 333,863,885 | ||||||
Graphic Packaging Holding Co. | 9,608,098 | 214,068,423 | ||||||
Greif, Inc., Class A, NVS | 796,674 | 53,225,790 | ||||||
Silgan Holdings, Inc. | 2,613,326 | 112,660,484 | ||||||
Sonoco Products Co. | 3,063,597 | 166,506,497 | ||||||
|
| |||||||
1,365,679,964 | ||||||||
Diversified Consumer Services — 0.9% | ||||||||
Graham Holdings Co., Class B | 115,249 | 67,190,167 | ||||||
Grand Canyon Education, Inc.(a)(b) | 932,659 | 109,009,184 | ||||||
H&R Block, Inc. | 4,762,719 | 205,082,680 | ||||||
Service Corp. International | 4,718,089 | 269,591,605 | ||||||
|
| |||||||
650,873,636 | ||||||||
Diversified Telecommunication Services — 0.4% | ||||||||
Frontier Communications Parent, Inc.(a)(b) | 6,917,554 | 108,259,720 | ||||||
Iridium Communications, Inc. | 3,911,000 | 177,911,390 | ||||||
|
| |||||||
286,171,110 | ||||||||
Electric Utilities — 1.0% | ||||||||
ALLETE, Inc. | 1,795,136 | 94,783,181 | ||||||
IDACORP, Inc. | 1,582,996 | 148,247,575 | ||||||
OGE Energy Corp. | 6,264,024 | 208,779,920 | ||||||
PNM Resources, Inc. | 2,684,510 | 119,755,991 | ||||||
Portland General Electric Co. | 3,161,770 | 127,988,450 | ||||||
|
| |||||||
699,555,117 | ||||||||
Electrical Equipment — 2.4% | ||||||||
Acuity Brands, Inc.(b) | 975,537 | 166,143,706 | ||||||
EnerSys | 1,283,536 | 121,512,353 | ||||||
Hubbell, Inc. | 1,677,322 | 525,689,488 | ||||||
nVent Electric PLC | 5,184,653 | 274,734,763 | ||||||
Regal Rexnord Corp.(b) | 2,073,892 | 296,317,689 | ||||||
Sensata Technologies Holding PLC | 4,767,035 | 180,289,264 | ||||||
Sunrun, Inc.(a)(b) | 6,792,450 | 85,313,172 | ||||||
Vicor Corp.(a)(b) | 701,628 | 41,318,873 | ||||||
|
| |||||||
1,691,319,308 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components — 3.6% |
| |||||||
Arrow Electronics, Inc.(a)(b) | 1,740,874 | $ | 218,027,060 | |||||
Avnet, Inc. | 2,857,128 | 137,684,998 | ||||||
Belden, Inc.(b) | 1,322,849 | 127,721,071 | ||||||
Cognex Corp. | 5,388,505 | 228,688,152 | ||||||
Coherent Corp.(a)(b) | 4,069,936 | 132,842,711 | ||||||
Crane NXT Co. | 1,509,889 | 83,904,532 | ||||||
IPG Photonics Corp.(a)(b) | 933,291 | 94,766,368 | ||||||
Jabil, Inc.(b) | 4,093,335 | 519,403,278 | ||||||
Littelfuse, Inc. | 778,503 | 192,539,362 | ||||||
National Instruments Corp. | 4,112,631 | 245,195,060 | ||||||
Novanta, Inc.(a)(b) | 1,119,904 | 160,639,030 | ||||||
TD SYNNEX Corp. | 1,495,411 | 149,331,743 | ||||||
Vishay Intertechnology, Inc. | 3,970,298 | 98,145,767 | ||||||
Vontier Corp.(b) | 4,837,271 | 149,568,419 | ||||||
|
| |||||||
2,538,457,551 | ||||||||
Energy Equipment & Services — 1.2% | ||||||||
ChampionX Corp.(b) | 6,148,149 | 218,997,067 | ||||||
NOV, Inc. | 12,315,470 | 257,393,323 | ||||||
Valaris Ltd.(a)(b) | 1,990,033 | 149,212,674 | ||||||
Weatherford International PLC(a) | 2,254,163 | 203,618,544 | ||||||
|
| |||||||
829,221,608 | ||||||||
Entertainment — 0.2% | ||||||||
TKO Group Holdings, Inc., Class A | 1,647,481 | 138,487,253 | ||||||
|
| |||||||
Financial Services — 1.4% | ||||||||
Essent Group Ltd. | 3,346,075 | 158,235,887 | ||||||
Euronet Worldwide, Inc.(a)(b) | 1,475,442 | 117,120,586 | ||||||
MGIC Investment Corp. | 8,829,657 | 147,366,975 | ||||||
Voya Financial, Inc. | 3,308,295 | 219,836,203 | ||||||
Western Union Co. (The) | 9,294,514 | 122,501,694 | ||||||
WEX, Inc.(a)(b) | 1,343,397 | 252,679,542 | ||||||
|
| |||||||
1,017,740,887 | ||||||||
Food Products — 1.2% | ||||||||
Darling Ingredients, Inc.(a)(b) | 4,988,119 | 260,379,812 | ||||||
Flowers Foods, Inc. | 6,014,266 | 133,396,420 | ||||||
Ingredion, Inc. | 2,068,544 | 203,544,729 | ||||||
Lancaster Colony Corp. | 636,960 | 105,117,509 | ||||||
Pilgrim’s Pride Corp.(a)(b) | 1,257,039 | 28,698,200 | ||||||
Post Holdings, Inc.(a)(b) | 1,589,150 | 136,253,721 | ||||||
|
| |||||||
867,390,391 | ||||||||
Gas Utilities — 1.1% | ||||||||
National Fuel Gas Co. | 2,871,661 | 149,067,922 | ||||||
New Jersey Resources Corp. | 3,049,705 | 123,909,514 | ||||||
ONE Gas, Inc. | 1,734,181 | 118,409,879 | ||||||
Southwest Gas Holdings, Inc. | 1,877,787 | 113,437,113 | ||||||
Spire, Inc. | 1,645,171 | 93,083,775 | ||||||
UGI Corp. | 6,551,506 | 150,684,638 | ||||||
|
| |||||||
748,592,841 | ||||||||
Ground Transportation — 2.0% | ||||||||
Avis Budget Group, Inc.(a)(b) | 617,901 | 111,030,631 | ||||||
Hertz Global Holdings, Inc.(a)(b) | 4,185,894 | 51,277,201 | ||||||
Knight-Swift Transportation Holdings, Inc. | 5,044,508 | 252,982,076 | ||||||
Landstar System, Inc. | 1,124,220 | 198,919,487 | ||||||
Ryder System, Inc. | 1,423,868 | 152,282,683 | ||||||
Saia, Inc.(a)(b) | 829,888 | 330,834,851 | ||||||
Werner Enterprises, Inc. | 1,982,537 | 77,219,816 | ||||||
XPO, Inc.(a)(b) | 3,626,896 | 270,784,055 | ||||||
|
| |||||||
1,445,330,800 | ||||||||
Health Care Equipment & Supplies — 2.7% | ||||||||
Enovis Corp.(a)(b) | 1,549,303 | 81,694,747 |
10 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) | ||||||||
Envista Holdings Corp.(a)(b) | 5,123,635 | $ | 142,846,944 | |||||
Globus Medical, Inc., Class A(a)(b) | 3,670,681 | 182,249,312 | ||||||
Haemonetics Corp.(a)(b) | 1,586,030 | 142,076,567 | ||||||
ICU Medical, Inc.(a)(b) | 634,082 | 75,462,099 | ||||||
Inari Medical, Inc.(a)(b) | 1,596,391 | 104,403,971 | ||||||
Integra LifeSciences Holdings Corp.(a)(b) | 2,214,959 | 84,589,284 | ||||||
Lantheus Holdings, Inc.(a)(b) | 2,139,118 | 148,625,919 | ||||||
LivaNova PLC(a) | 1,685,204 | 89,113,587 | ||||||
Masimo Corp.(a)(b) | 1,387,592 | 121,664,067 | ||||||
Neogen Corp.(a)(b) | 6,154,462 | 114,103,725 | ||||||
Penumbra, Inc.(a)(b) | 1,202,126 | 290,806,301 | ||||||
QuidelOrtho Corp.(a)(b) | 1,545,789 | 112,904,429 | ||||||
Shockwave Medical, Inc.(a)(b) | 1,149,365 | 228,838,571 | ||||||
|
| |||||||
1,919,379,523 | ||||||||
Health Care Providers & Services — 2.3% | ||||||||
Acadia Healthcare Co., Inc.(a)(b) | 2,882,701 | 202,682,707 | ||||||
Amedisys, Inc.(a)(b) | 1,020,605 | 95,324,507 | ||||||
Chemed Corp.(b) | 471,537 | 245,057,779 | ||||||
Encompass Health Corp. | 3,134,749 | 210,529,743 | ||||||
HealthEquity, Inc.(a)(b) | 2,673,126 | 195,271,854 | ||||||
Option Care Health, Inc.(a)(b) | 5,625,696 | 181,991,266 | ||||||
Patterson Cos., Inc. | 2,661,412 | 78,884,252 | ||||||
Progyny, Inc.(a)(b) | 2,595,946 | 88,314,083 | ||||||
R1 RCM, Inc.(a)(b) | 6,158,430 | 92,807,540 | ||||||
Tenet Healthcare Corp.(a) | 3,175,531 | 209,235,737 | ||||||
|
| |||||||
1,600,099,468 | ||||||||
Health Care REITs — 1.0% | ||||||||
Healthcare Realty Trust, Inc. | 11,911,425 | 181,887,460 | ||||||
Medical Properties Trust, Inc. | 18,715,103 | 101,997,311 | ||||||
Omega Healthcare Investors, Inc. | 7,658,430 | 253,953,539 | ||||||
Physicians Realty Trust | 7,457,706 | 90,909,436 | ||||||
Sabra Health Care REIT, Inc. | 7,231,430 | 100,806,134 | ||||||
|
| |||||||
729,553,880 | ||||||||
Health Care Technology — 0.1% | ||||||||
Doximity, Inc., Class A(a)(b) | 3,925,480 | 83,298,686 | ||||||
|
| |||||||
Hotel & Resort REITs — 0.1% | ||||||||
Park Hotels & Resorts, Inc. | 6,747,101 | 83,124,284 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.4% | ||||||||
Aramark | 8,164,401 | 283,304,715 | ||||||
Boyd Gaming Corp. | 2,220,808 | 135,091,751 | ||||||
Choice Hotels International, Inc.(b) | 787,792 | 96,512,398 | ||||||
Churchill Downs, Inc.(b) | 2,130,807 | 247,258,844 | ||||||
Hilton Grand Vacations, Inc.(a)(b) | 2,271,553 | 92,452,207 | ||||||
Light & Wonder, Inc., Class A(a)(b) | 2,849,737 | 203,271,740 | ||||||
Marriott Vacations Worldwide Corp. | 1,060,736 | 106,741,864 | ||||||
Penn Entertainment, Inc.(a)(b) | 4,723,718 | 108,409,328 | ||||||
Planet Fitness, Inc., Class A(a)(b) | 2,644,666 | 130,064,674 | ||||||
Texas Roadhouse, Inc. | 2,087,560 | 200,614,516 | ||||||
Travel + Leisure Co. | 2,311,991 | 84,919,429 | ||||||
Vail Resorts, Inc. | 1,205,786 | 267,551,856 | ||||||
Wendy’s Co. (The) | 5,301,881 | 108,211,391 | ||||||
Wingstop, Inc.(b) | 937,569 | 168,612,409 | ||||||
Wyndham Hotels & Resorts, Inc. | 2,635,158 | 183,248,887 | ||||||
|
| |||||||
2,416,266,009 | ||||||||
Household Durables — 1.7% | ||||||||
Helen of Troy Ltd.(a)(b) | 753,702 | 87,851,505 | ||||||
KB Home | 2,430,410 | 112,479,375 | ||||||
Leggett & Platt, Inc. | 4,165,674 | 105,849,776 | ||||||
Taylor Morrison Home Corp., Class A(a)(b) | 3,421,465 | 145,788,624 | ||||||
Tempur Sealy International, Inc. | 5,384,251 | 233,353,438 |
Security | Shares | Value | ||||||
Household Durables (continued) | ||||||||
Toll Brothers, Inc. | 3,419,697 | $ | 252,920,790 | |||||
TopBuild Corp.(a) | 993,208 | 249,891,133 | ||||||
|
| |||||||
1,188,134,641 | ||||||||
Independent Power and Renewable Electricity Producers — 0.7% | ||||||||
Ormat Technologies, Inc.(b) | 1,677,335 | 117,279,263 | ||||||
Vistra Corp. | 10,806,089 | 358,546,033 | ||||||
|
| |||||||
475,825,296 | ||||||||
Industrial REITs — 1.3% | ||||||||
EastGroup Properties, Inc. | 1,419,865 | 236,450,118 | ||||||
First Industrial Realty Trust, Inc. | 4,136,276 | 196,845,375 | ||||||
Rexford Industrial Realty, Inc. | 6,456,523 | 318,629,410 | ||||||
STAG Industrial, Inc. | 5,619,035 | 193,912,898 | ||||||
|
| |||||||
945,837,801 | ||||||||
Insurance — 4.4% | ||||||||
American Financial Group, Inc. | 2,070,231 | 231,182,696 | ||||||
Brighthouse Financial, Inc.(a)(b) | 2,048,591 | 100,258,043 | ||||||
CNO Financial Group, Inc. | 3,534,008 | 83,862,010 | ||||||
Erie Indemnity Co., Class A, NVS | 780,069 | 229,176,471 | ||||||
Fidelity National Financial, Inc., Class A | 2,217,266 | 91,573,086 | ||||||
First American Financial Corp. | 3,224,039 | 182,125,963 | ||||||
Hanover Insurance Group, Inc. (The) | 1,118,215 | 124,099,501 | ||||||
Kemper Corp. | 1,883,165 | 79,149,425 | ||||||
Kinsale Capital Group, Inc.(b) | 688,177 | 284,994,741 | ||||||
Old Republic International Corp. | 8,279,119 | 223,039,466 | ||||||
Primerica, Inc.(b) | 1,118,621 | 217,023,660 | ||||||
Reinsurance Group of America, Inc. | 2,070,796 | 300,658,871 | ||||||
RenaissanceRe Holdings Ltd. | 1,600,729 | 316,816,284 | ||||||
RLI Corp. | 1,254,903 | 170,528,769 | ||||||
Selective Insurance Group, Inc. | 1,894,247 | 195,429,463 | ||||||
Unum Group | 5,751,126 | 282,897,888 | ||||||
|
| |||||||
3,112,816,337 | ||||||||
Interactive Media & Services — 0.3% | ||||||||
Ziff Davis, Inc.(a)(b) | 1,453,767 | 92,590,420 | ||||||
ZoomInfo Technologies, Inc., Class A(a)(b) | 9,542,590 | 156,498,476 | ||||||
|
| |||||||
249,088,896 | ||||||||
IT Services — 0.6% | ||||||||
GoDaddy, Inc., Class A(a)(b) | 4,591,580 | 341,980,879 | ||||||
Kyndryl Holdings, Inc.(a)(b) | 7,158,652 | 108,095,645 | ||||||
|
| |||||||
450,076,524 | ||||||||
Leisure Products — 1.1% | ||||||||
Brunswick Corp. | 2,184,075 | 172,541,925 | ||||||
Mattel, Inc.(a)(b) | 11,075,782 | 243,999,477 | ||||||
Polaris, Inc. | 1,666,584 | 173,558,058 | ||||||
Topgolf Callaway Brands Corp.(a)(b) | 4,469,679 | 61,860,357 | ||||||
YETI Holdings, Inc.(a)(b) | 2,712,689 | 130,805,864 | ||||||
|
| |||||||
782,765,681 | ||||||||
Life Sciences Tools & Services — 1.1% | ||||||||
Azenta, Inc.(a) | 1,881,331 | 94,424,003 | ||||||
Bruker Corp.(b) | 3,077,218 | 191,710,681 | ||||||
Medpace Holdings, Inc.(a)(b) | 726,458 | 175,897,276 | ||||||
Repligen Corp.(a)(b) | 1,621,717 | 257,869,220 | ||||||
Sotera Health Co.(a)(b) | 3,093,609 | 46,342,263 | ||||||
|
| |||||||
766,243,443 | ||||||||
Machinery — 4.8% | ||||||||
AGCO Corp. | 1,943,769 | 229,908,997 | ||||||
Chart Industries, Inc.(a)(b) | 1,312,716 | 222,006,530 | ||||||
Crane Co.(b) | 1,527,007 | 135,659,302 | ||||||
Donaldson Co., Inc. | 3,791,873 | 226,147,306 | ||||||
Esab Corp. | 1,771,538 | 124,397,398 |
SCHEDULES OF INVESTMENTS | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Flowserve Corp. | 4,103,530 | $ | 163,197,388 | |||||
Graco, Inc.(b) | 5,285,297 | 385,192,445 | ||||||
ITT, Inc. | 2,567,697 | 251,403,213 | ||||||
Lincoln Electric Holdings, Inc. | 1,795,605 | 326,423,033 | ||||||
Middleby Corp. (The)(a) | 1,676,447 | 214,585,216 | ||||||
Oshkosh Corp. | 2,042,304 | 194,897,071 | ||||||
RBC Bearings, Inc.(a)(b) | 908,733 | 212,761,657 | ||||||
Terex Corp. | 2,107,951 | 121,460,137 | ||||||
Timken Co. (The) | 2,044,078 | 150,219,292 | ||||||
Toro Co. (The) | 3,249,685 | 270,048,824 | ||||||
Watts Water Technologies, Inc., Class A | 855,992 | 147,932,538 | ||||||
|
| |||||||
3,376,240,347 | ||||||||
Marine Transportation — 0.2% | ||||||||
Kirby Corp.(a)(b) | 1,860,877 | 154,080,616 | ||||||
|
| |||||||
Media — 0.8% | ||||||||
Cable One, Inc. | 142,422 | 87,680,680 | ||||||
New York Times Co. (The), Class A | 5,115,316 | 210,751,019 | ||||||
Nexstar Media Group, Inc., Class A | 1,041,891 | 149,375,913 | ||||||
TEGNA, Inc. | 6,302,649 | 91,829,596 | ||||||
|
| |||||||
539,637,208 | ||||||||
Metals & Mining — 2.3% | ||||||||
Alcoa Corp. | 5,581,066 | 162,185,778 | ||||||
Cleveland-Cliffs, Inc.(a)(b) | 15,909,151 | 248,660,030 | ||||||
Commercial Metals Co. | 3,652,510 | 180,470,519 | ||||||
MP Materials Corp., Class A(a)(b) | 4,500,372 | 85,957,105 | ||||||
Reliance Steel & Aluminum Co. | 1,831,384 | 480,243,827 | ||||||
Royal Gold, Inc. | 2,054,439 | 218,448,499 | ||||||
United States Steel Corp.(b) | 6,973,252 | 226,491,225 | ||||||
Worthington Industries, Inc. | 952,788 | 58,901,354 | ||||||
|
| |||||||
1,661,358,337 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.7% | ||||||||
Annaly Capital Management, Inc. | 15,447,091 | 290,559,782 | ||||||
Starwood Property Trust, Inc. | 9,293,067 | 179,820,846 | ||||||
|
| |||||||
470,380,628 | ||||||||
Multi-Utilities — 0.3% | ||||||||
Black Hills Corp. | 2,098,913 | 106,184,008 | ||||||
Northwestern Energy Group, Inc. | 1,877,828 | 90,248,414 | ||||||
|
| |||||||
196,432,422 | ||||||||
Office REITs — 0.6% | ||||||||
COPT Defense Properties | 3,519,559 | 83,871,091 | ||||||
Cousins Properties, Inc. | 4,746,768 | 96,691,664 | ||||||
Kilroy Realty Corp. | 3,334,941 | 105,417,485 | ||||||
Vornado Realty Trust | 5,005,820 | 113,531,998 | ||||||
|
| |||||||
399,512,238 | ||||||||
Oil, Gas & Consumable Fuels — 4.7% | ||||||||
Antero Midstream Corp. | 10,651,451 | 127,604,383 | ||||||
Antero Resources Corp.(a)(b) | 8,830,907 | 224,128,420 | ||||||
Chesapeake Energy Corp. | 3,518,546 | 303,404,222 | ||||||
Chord Energy Corp. | 1,298,892 | 210,511,426 | ||||||
Civitas Resources, Inc. | 2,661,089 | 215,202,267 | ||||||
CNX Resources Corp.(a)(b) | 5,049,857 | 114,025,771 | ||||||
DT Midstream, Inc. | 3,030,633 | 160,381,098 | ||||||
Equitrans Midstream Corp. | 13,550,342 | 126,966,704 | ||||||
HF Sinclair Corp. | 4,548,961 | 258,972,350 | ||||||
Matador Resources Co.(b) | 3,465,535 | 206,130,022 | ||||||
Murphy Oil Corp. | 4,639,596 | 210,405,679 | ||||||
Ovintiv, Inc. | 7,936,399 | 377,534,500 | ||||||
PBF Energy, Inc., Class A | 3,440,262 | 184,157,225 | ||||||
Permian Resources Corp., Class A | 8,683,576 | 121,222,721 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Range Resources Corp.(b) | 7,548,342 | $ | 244,641,764 | |||||
Southwestern Energy Co.(a)(b) | 34,448,519 | 222,192,948 | ||||||
|
| |||||||
3,307,481,500 | ||||||||
Paper & Forest Products — 0.1% | ||||||||
Louisiana-Pacific Corp. | 2,007,096 | 110,932,196 | ||||||
|
| |||||||
Personal Care Products — 0.4% | ||||||||
BellRing Brands, Inc.(a) | 4,111,005 | 169,496,736 | ||||||
Coty, Inc., Class A(a)(b) | 11,202,001 | 122,885,951 | ||||||
|
| |||||||
292,382,687 | ||||||||
Pharmaceuticals — 0.5% | ||||||||
Jazz Pharmaceuticals PLC(a) | 1,974,562 | 255,587,305 | ||||||
Perrigo Co. PLC | 4,234,574 | 135,294,640 | ||||||
|
| |||||||
390,881,945 | ||||||||
Professional Services — 3.0% | ||||||||
ASGN, Inc.(a)(b) | 1,513,722 | 123,640,813 | ||||||
CACI International, Inc., Class A(a)(b) | 713,044 | 223,845,903 | ||||||
Concentrix Corp.(b) | 1,351,267 | 108,249,999 | ||||||
ExlService Holdings, Inc.(a) | 5,415,526 | 151,851,349 | ||||||
Exponent, Inc. | 1,589,537 | 136,064,367 | ||||||
FTI Consulting, Inc.(a)(b) | 1,064,265 | 189,875,519 | ||||||
Genpact Ltd. | 5,213,463 | 188,727,361 | ||||||
Insperity, Inc. | 1,133,255 | 110,605,688 | ||||||
KBR, Inc. | 4,219,530 | 248,699,098 | ||||||
ManpowerGroup, Inc. | 1,550,658 | 113,694,245 | ||||||
Maximus, Inc. | 1,908,891 | 142,555,980 | ||||||
Paylocity Holding Corp.(a)(b) | 1,346,686 | 244,692,846 | ||||||
Science Applications International Corp. | 1,678,949 | 177,196,277 | ||||||
|
| |||||||
2,159,699,445 | ||||||||
Real Estate Management & Development — 0.3% | ||||||||
Jones Lang LaSalle, Inc.(a)(b) | 1,491,266 | 210,536,934 | ||||||
|
| |||||||
Residential REITs — 0.9% | ||||||||
Apartment Income REIT Corp. | 4,667,016 | 143,277,391 | ||||||
Equity LifeStyle Properties, Inc. | 5,825,827 | 371,163,438 | ||||||
Independence Realty Trust, Inc. | 7,018,633 | 98,752,167 | ||||||
|
| |||||||
613,192,996 | ||||||||
Retail REITs — 1.2% | ||||||||
Agree Realty Corp. | 3,010,836 | 166,318,581 | ||||||
Brixmor Property Group, Inc. | 9,401,118 | 195,355,232 | ||||||
Kite Realty Group Trust | 6,857,838 | 146,894,890 | ||||||
NNN REIT, Inc. | 5,704,948 | 201,612,862 | ||||||
Spirit Realty Capital, Inc. | 4,420,161 | 148,207,998 | ||||||
|
| |||||||
858,389,563 | ||||||||
Semiconductors & Semiconductor Equipment — 2.4% | ||||||||
Allegro MicroSystems, Inc.(a)(b) | 2,226,144 | 71,103,039 | ||||||
Amkor Technology, Inc. | 3,227,811 | 72,948,529 | ||||||
Cirrus Logic, Inc.(a)(b) | 1,711,068 | 126,550,589 | ||||||
Lattice Semiconductor Corp.(a)(b) | 4,310,885 | 370,434,348 | ||||||
MACOM Technology Solutions Holdings, Inc.(a)(b) | 1,677,224 | 136,827,934 | ||||||
MKS Instruments, Inc. | 1,965,687 | 170,110,553 | ||||||
Power Integrations, Inc. | 1,795,011 | 136,977,290 | ||||||
Silicon Laboratories, Inc.(a)(b) | 996,554 | 115,490,643 | ||||||
Synaptics, Inc.(a)(b) | 1,236,123 | 110,558,841 | ||||||
Universal Display Corp. | 1,362,297 | 213,867,006 | ||||||
Wolfspeed, Inc.(a)(b) | 3,892,951 | 148,321,433 | ||||||
|
| |||||||
1,673,190,205 | ||||||||
Software — 2.9% | ||||||||
ACI Worldwide, Inc.(a)(b) | 3,396,335 | 76,621,318 |
12 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Software (continued) | ||||||||
Aspen Technology, Inc.(a)(b) | 887,110 | $ | 181,201,089 | |||||
Blackbaud, Inc.(a)(b) | 1,347,462 | 94,753,528 | ||||||
CommVault Systems, Inc.(a)(b) | 1,372,201 | 92,774,510 | ||||||
Dolby Laboratories, Inc., Class A | 1,862,597 | 147,629,438 | ||||||
Dropbox, Inc., Class A(a)(b) | 8,065,102 | 219,612,727 | ||||||
Dynatrace, Inc.(a)(b) | 7,429,899 | 347,199,180 | ||||||
Envestnet, Inc.(a) | 1,426,567 | 62,811,745 | ||||||
Manhattan Associates, Inc.(a)(b) | 1,928,713 | 381,229,411 | ||||||
NCR Corp.(a)(b) | 4,186,347 | 112,905,779 | ||||||
Qualys, Inc.(a)(b) | 1,148,177 | 175,154,401 | ||||||
Teradata Corp.(a) | 3,122,893 | 140,592,643 | ||||||
|
| |||||||
2,032,485,769 | ||||||||
Specialized REITs — 1.8% | ||||||||
CubeSmart | 7,030,955 | 268,090,314 | ||||||
EPR Properties | 2,355,776 | 97,858,935 | ||||||
Gaming & Leisure Properties, Inc. | 8,200,340 | 373,525,487 | ||||||
Lamar Advertising Co., Class A(b) | 2,737,834 | 228,527,004 | ||||||
National Storage Affiliates Trust | 2,595,574 | 82,383,519 | ||||||
PotlatchDeltic Corp. | 2,499,236 | 113,440,322 | ||||||
Rayonier, Inc. | 4,266,177 | 121,415,397 | ||||||
|
| |||||||
1,285,240,978 | ||||||||
Specialty Retail — 2.8% | ||||||||
AutoNation, Inc.(a)(b) | 840,343 | 127,227,930 | ||||||
Dick’s Sporting Goods, Inc. | 1,959,738 | 212,788,352 | ||||||
Five Below, Inc.(a)(b) | 1,740,905 | 280,111,614 | ||||||
GameStop Corp., Class A(a)(b) | 8,387,421 | 138,056,950 | ||||||
Gap, Inc. (The) | 6,676,421 | 70,970,355 | ||||||
Lithia Motors, Inc., Class A(b) | 862,008 | 254,576,823 | ||||||
Murphy U.S.A., Inc.(b) | 610,562 | 208,647,352 | ||||||
Penske Automotive Group, Inc. | 610,381 | 101,970,250 | ||||||
RH(a)(b) | 483,232 | 127,747,212 | ||||||
Valvoline, Inc.(b) | 4,336,719 | 139,815,821 | ||||||
Williams-Sonoma, Inc.(b) | 2,008,558 | 312,129,913 | ||||||
|
| |||||||
1,974,042,572 | ||||||||
Technology Hardware, Storage & Peripherals — 0.5% | ||||||||
Super Micro Computer, Inc.(a)(b) | 1,428,170 | 391,632,777 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.9% | ||||||||
Capri Holdings Ltd.(a) | 3,630,023 | 190,975,510 | ||||||
Carter’s, Inc. | 1,165,253 | 80,577,245 |
Security | Shares | Value | ||||||
| ||||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||
Columbia Sportswear Co. | 1,093,323 | $ | 81,015,234 | |||||
Crocs, Inc.(a)(b) | 1,927,931 | 170,101,352 | ||||||
Deckers Outdoor Corp.(a)(b) | 817,347 | 420,189,919 | ||||||
PVH Corp. | 1,961,489 | 150,073,523 | ||||||
Skechers U.S.A., Inc., Class A(a)(b) | 4,202,391 | 205,707,040 | ||||||
Under Armour, Inc., Class A(a)(b) | 5,901,794 | 40,427,289 | ||||||
Under Armour, Inc., Class C, NVS(a)(b) | 6,129,509 | 39,106,268 | ||||||
|
| |||||||
1,378,173,380 | ||||||||
Trading Companies & Distributors — 1.2% | ||||||||
GATX Corp. | 1,107,143 | 120,490,373 | ||||||
MSC Industrial Direct Co., Inc., Class A | 1,482,384 | 145,495,990 | ||||||
Watsco, Inc. | 1,048,909 | 396,193,907 | ||||||
WESCO International, Inc.(b) | 1,382,329 | 198,806,557 | ||||||
|
| |||||||
860,986,827 | ||||||||
Water Utilities — 0.4% | ||||||||
Essential Utilities, Inc. | 7,610,689 | 261,274,953 | ||||||
|
| |||||||
Total Long-Term Investments — 99.3% |
| 70,359,091,626 | ||||||
|
| |||||||
Short-Term Securities |
| |||||||
Money Market Funds — 6.4% |
| |||||||
BlackRock Cash Funds: Institutional, | 3,733,299,806 | 3,734,793,126 | ||||||
BlackRock Cash Funds: Treasury, | 777,350,463 | 777,350,463 | ||||||
|
| |||||||
Total Short-Term Securities — 6.4% |
| 4,512,143,589 | ||||||
|
| |||||||
Total Investments — 105.7% |
| 74,871,235,215 | ||||||
Liabilities in Excess of Other Assets — (5.7)% |
| (4,066,581,769 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 70,804,653,446 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
SCHEDULES OF INVESTMENTS | 13 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||||||||
| Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain from Underlying Funds |
| |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 4,068,703,325 | $ | — | $ | (334,343,042 | )(a) | $ | 179,859 | $ | 252,984 | $ | 3,734,793,126 | 3,733,299,806 | $ | 8,486,238 | (b) | $ | — | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 225,712,057 | 551,638,406 | (a) | — | — | — | 777,350,463 | 777,350,463 | 5,628,797 | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
$ | 179,859 | $ | 252,984 | $ | 4,512,143,589 | $ | 14,115,035 | $ | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
S&P Mid 400 E-Mini Index | 497 | 12/15/23 | $ | 125,264 | $ | (835,170 | ) | |||||||||
|
|
OTC Total Return Swaps
| ||||||||||||||||||||||||
Reference Entity | Payment Frequency | Counterparty(a) | Termination Date | Net Notional | Accrued Unrealized Appreciation (Depreciation) | Net Value of Reference Entity | Gross Notional Amount Net Asset Percentage | |||||||||||||||||
| ||||||||||||||||||||||||
Equity Securities Long/Short | Monthly | Goldman Sachs Bank USA(b) | 08/19/26 | $ | 265,228,009 | $ | (10,247,014 | )(c) | $ | 255,341,230 | 0.4 | % | ||||||||||||
Monthly | HSBC Bank PLC(d) | 02/10/28 | 18,699,546 | (119,882 | )(e) | 18,576,656 | 0.0 | (f) | ||||||||||||||||
Monthly | JPMorgan Chase Bank NA(g) | 02/08/24 | 28,216,137 | 534,935 | (h) | 28,754,159 | 0.0 | (f) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | (9,831,961 | ) | $ | 302,672,045 | ||||||||||||||||||||
|
|
|
|
(a) | The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. |
(c) | Amount includes $(360,235) of net dividends, payable for referenced securities purchased and financing fees. |
(e) | Amount includes $3,008 of net dividends, payable for referenced securities purchased and financing fees. |
(f) | Rounds to less than 0.1%. |
(h) | Amount includes $(3,087) of net dividends, payable for referenced securities purchased and financing fees. |
14 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF |
The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:
(b) | (e) | (g) | ||||
Range: | 40 basis points | 40 basis points | 40 basis points | |||
Benchmarks: | USD - 1D Overnight Fed Funds Effective Rate | USD - 1D Overnight Bank Funding Rate | USD - 1D Overnight Bank Funding Rate | |||
(FEDL01) | (OBFR01) | (OBFR01) |
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 19, 2026.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Cadence Bank | 349,121 | $ | 7,408,347 | 2.9 | % | |||||||||||
|
|
|
| |||||||||||||
Insurance | ||||||||||||||||
Fidelity National Financial, Inc. | 5,869,426 | 242,407,294 | 94.9 | |||||||||||||
|
|
|
| |||||||||||||
Software | ||||||||||||||||
Envestnet, Inc. | 125,496 | 5,525,589 | 2.2 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — Goldman Sachs Bank USA | $ | 255,341,230 | ||||||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 10, 2028.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long | ||||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Cadence Bank | 399,296 | $ | 8,473,061 | 45.6 | % | |||||||||||
|
|
|
|
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Consumer Finance | ||||||||||||||||
Fidelity National Financial, Inc. | 33,719 | $ | 899,623 | 4.8 | % | |||||||||||
|
|
|
| |||||||||||||
Financial Services | ||||||||||||||||
Western Union Co. (The) | 650,674 | 8,575,883 | 46.2 | |||||||||||||
|
|
|
| |||||||||||||
Specialized REITs | ||||||||||||||||
Gaming & Leisure Properties, Inc. | 13,789 | 628,089 | 3.4 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — HSBC Bank PLC | $ | 18,576,656 | ||||||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 8, 2024.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Cadence Bank | 256,623 | $ | 5,445,540 | 18.9 | % | |||||||||||
|
|
|
| |||||||||||||
Financial Services | ||||||||||||||||
Western Union Co. (The) | 1,768,484 | 23,308,619 | 81.1 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — JPMorgan Chase Bank NA | $ | 28,754,159 | ||||||||||||||
|
|
Balances Reported in the Statements of Assets and Liabilities for OTC Swaps
Description | Swap Premiums Paid | Swap Premiums Received | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
OTC Swaps | $ | — | $ | — | $ | 534,935 | $ | (10,366,896 | ) |
SCHEDULES OF INVESTMENTS | 15 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Assets — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Swaps — OTC | ||||||||||||||||||||||||||||
Unrealized appreciation on OTC swaps; Swap premiums paid | $ | — | $ | — | $ | 534,935 | $ | — | $ | — | $ | — | $ | 534,935 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 835,170 | $ | — | $ | — | $ | — | $ | 835,170 | ||||||||||||||
Swaps — OTC | ||||||||||||||||||||||||||||
Unrealized depreciation on OTC swaps; Swap premiums received | — | — | 10,366,896 | — | — | — | 10,366,896 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 11,202,066 | $ | — | $ | — | $ | — | $ | 11,202,066 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 8,802,161 | $ | — | $ | — | $ | — | $ | 8,802,161 | ||||||||||||||
Swaps | — | — | (5,638,567 | ) | — | — | — | (5,638,567 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 3,163,594 | $ | — | $ | — | $ | — | $ | 3,163,594 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (8,346,494 | ) | $ | — | $ | — | $ | — | $ | (8,346,494 | ) | ||||||||||||
Swaps | — | — | (7,431,220 | ) | — | — | — | (7,431,220 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | (15,777,714 | ) | $ | — | $ | — | $ | — | $ | (15,777,714 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 169,850,195 | ||
Total return swaps | ||||
Average notional amount | $ | 185,601,755 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments – Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments | ||||||||
Futures contracts | $ | — | $ | 546,700 | ||||
Swaps — OTC(a) | 534,935 | 10,366,896 | ||||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | $ | 534,935 | $ | 10,913,596 | ||||
|
|
|
| |||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | (546,700 | ) | |||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 534,935 | $ | 10,366,896 | ||||
|
|
|
|
(a) | Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statements of Assets and Liabilities. |
16 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Mid-Cap ETF |
The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
Counterparty | Derivative Assets Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Non- Cash Collateral Received(b) | Cash Collateral Received(b) | Net Amount of Derivative Assets(c) | |||||||||||||||
JPMorgan Chase Bank N.A. | $ | 534,935 | $ | — | $ | — | $ | (534,935 | ) | $ | — | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
| ||||||||||||||||||||
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Non- Cash Collateral Pledged(b) | Cash Collateral Pledged(b) | Net Amount of Derivative Liabilities(d) | |||||||||||||||
Goldman Sachs Bank USA | $ | 10,247,014 | $ | — | $ | — | $ | (10,247,014 | ) | $ | — | |||||||||
HSBC Bank PLC | 119,882 | — | — | (119,882 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 10,366,896 | $ | — | $ | — | $ | (10,366,896 | ) | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(d) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 70,359,091,626 | $ | — | $ | — | $ | 70,359,091,626 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 4,512,143,589 | — | — | 4,512,143,589 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 74,871,235,215 | $ | — | $ | — | $ | 74,871,235,215 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Equity Contracts | $ | — | $ | 534,935 | $ | — | $ | 534,935 | ||||||||
Liabilities | ||||||||||||||||
Equity Contracts | (835,170 | ) | (10,366,896 | ) | — | (11,202,066 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
$ | (835,170 | ) | $ | (9,831,961 | ) | $ | — | $ | (10,667,131 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 17 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.2% | ||||||||
AAR Corp.(a)(b)(c) | 2,244,253 | $ | 133,600,381 | |||||
AeroVironment, Inc.(a)(b)(c) | 1,769,978 | 197,405,646 | ||||||
Kaman Corp.(a) | 1,911,813 | 37,567,125 | ||||||
Mercury Systems, Inc.(a)(b)(c) | 3,457,387 | 128,234,484 | ||||||
Moog, Inc., Class A(a) | 1,939,246 | 219,057,228 | ||||||
National Presto Industries, Inc.(a) | 358,197 | 25,954,955 | ||||||
Triumph Group, Inc.(a)(b)(c) | 4,076,599 | 31,226,748 | ||||||
|
| |||||||
773,046,567 | ||||||||
Air Freight & Logistics — 0.4% | ||||||||
Forward Air Corp.(a) | 1,734,929 | 119,259,019 | ||||||
Hub Group, Inc., Class A(a)(b)(c) | 2,121,068 | 166,588,681 | ||||||
|
| |||||||
285,847,700 | ||||||||
Automobile Components — 1.5% | ||||||||
American Axle & Manufacturing Holdings, Inc.(a)(b)(c) | 7,908,911 | 57,418,694 | ||||||
Dana, Inc.(a) | 8,673,296 | 127,237,252 | ||||||
Dorman Products, Inc.(a)(b)(c) | 1,913,397 | 144,958,957 | ||||||
Gentherm, Inc.(a)(b)(c) | 2,227,473 | 120,862,685 | ||||||
LCI Industries(a) | 1,709,820 | 200,767,064 | ||||||
Patrick Industries, Inc.(a) | 1,409,715 | 105,813,208 | ||||||
Phinia, Inc.(a) | 3,174,255 | 85,038,291 | ||||||
Standard Motor Products, Inc.(a) | 1,261,508 | 42,411,899 | ||||||
XPEL, Inc.(a)(b)(c) | 1,436,077 | 110,735,897 | ||||||
|
| |||||||
995,243,947 | ||||||||
Automobiles — 0.2% | ||||||||
Winnebago Industries, Inc.(a) | 2,039,772 | 121,264,445 | ||||||
|
| |||||||
Banks — 8.6% | ||||||||
Ameris Bancorp(a) | 4,388,018 | 168,456,011 | ||||||
Atlantic Union Bankshares Corp.(a) | 4,835,564 | 139,167,532 | ||||||
Axos Financial, Inc.(a)(b)(c) | 3,541,918 | 134,097,015 | ||||||
Banc of California, Inc.(a) | 3,537,836 | 43,798,410 | ||||||
BancFirst Corp. | 978,628 | 84,876,406 | ||||||
Bancorp, Inc. (The)(a)(b)(c) | 3,664,987 | 126,442,051 | ||||||
Bank of Hawaii Corp.(a) | 2,678,398 | 133,089,597 | ||||||
BankUnited, Inc.(a) | 4,991,757 | 113,312,884 | ||||||
Banner Corp.(a) | 2,319,074 | 98,282,356 | ||||||
Berkshire Hills Bancorp, Inc.(a) | 2,953,723 | 59,222,146 | ||||||
Brookline Bancorp, Inc.(a) | 5,986,919 | 54,540,832 | ||||||
Capitol Federal Financial, Inc.(a) | 8,541,161 | 40,741,338 | ||||||
Cathay General Bancorp | 3,421,989 | 118,948,338 | ||||||
Central Pacific Financial Corp.(a) | 1,597,517 | 26,646,584 | ||||||
City Holding Co.(a) | 1,013,316 | 91,553,101 | ||||||
Community Bank System, Inc.(a) | 3,589,821 | 151,526,344 | ||||||
Customers Bancorp, Inc.(a)(b)(c) | 1,901,405 | 65,503,402 | ||||||
CVB Financial Corp.(a) | 8,938,467 | 148,110,398 | ||||||
Dime Community Bancshares, Inc.(a) | 2,361,096 | 47,127,476 | ||||||
Eagle Bancorp, Inc.(a) | 2,019,153 | 43,310,832 | ||||||
FB Financial Corp.(a) | 2,370,555 | 67,228,940 | ||||||
First BanCorp/Puerto Rico(a) | 11,950,930 | 160,859,518 | ||||||
First Bancorp/Southern Pines NC(a) | 2,774,520 | 78,074,993 | ||||||
First Commonwealth Financial Corp.(a) | 6,914,751 | 84,429,110 | ||||||
First Financial Bancorp(a) | 6,423,117 | 125,893,093 | ||||||
First Hawaiian, Inc.(a) | 8,615,920 | 155,517,356 | ||||||
Fulton Financial Corp.(a) | 9,435,149 | 114,259,654 | ||||||
Hanmi Financial Corp.(a) | 2,058,503 | 33,409,504 | ||||||
Heritage Financial Corp.(a) | 2,349,768 | 38,324,716 | ||||||
Hilltop Holdings, Inc. | 3,088,359 | 87,585,861 | ||||||
Hope Bancorp, Inc.(a) | 8,105,383 | 71,732,640 | ||||||
Independent Bank Corp.(a) | 2,962,999 | 145,453,621 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Independent Bank Group, Inc.(a) | 2,425,143 | $ | 95,914,406 | |||||
Lakeland Financial Corp.(a) | 1,717,164 | 81,496,603 | ||||||
National Bank Holdings Corp., Class A(a) | 2,529,282 | 75,271,432 | ||||||
NBT Bancorp, Inc.(a) | 3,173,060 | 100,554,271 | ||||||
Northfield Bancorp, Inc.(a) | 2,672,944 | 25,259,321 | ||||||
Northwest Bancshares, Inc.(a) | 8,581,892 | 87,792,755 | ||||||
OFG Bancorp(a) | 3,182,158 | 95,019,238 | ||||||
Pacific Premier Bancorp, Inc.(a) | 6,475,515 | 140,907,206 | ||||||
PacWest Bancorp(c) | 5,547,720 | 43,882,465 | ||||||
Park National Corp.(a) | 970,643 | 91,745,176 | ||||||
Pathward Financial, Inc.(a)(c) | 1,770,856 | 81,618,753 | ||||||
Preferred Bank | 626,312 | 38,987,922 | ||||||
Provident Financial Services, Inc.(a) | 5,100,613 | 77,988,373 | ||||||
Renasant Corp.(a) | 3,790,534 | 99,274,085 | ||||||
S&T Bancorp, Inc.(a) | 2,582,211 | 69,926,274 | ||||||
Seacoast Banking Corp. of Florida(a) | 5,745,254 | 126,165,778 | ||||||
ServisFirst Bancshares, Inc.(a) | 3,307,064 | 172,529,529 | ||||||
Simmons First National Corp., Class A(a) | 8,480,581 | 143,830,654 | ||||||
Southside Bancshares, Inc.(a) | 1,947,052 | 55,880,392 | ||||||
Stellar Bancorp, Inc.(a) | 3,167,734 | 67,536,089 | ||||||
Tompkins Financial Corp.(a) | 844,210 | 41,357,848 | ||||||
Triumph Financial, Inc.(a)(b)(c) | 1,461,526 | 94,692,270 | ||||||
TrustCo Bank Corp.(a) | 1,288,670 | 35,167,804 | ||||||
Trustmark Corp.(a) | 4,123,624 | 89,606,350 | ||||||
United Community Banks, Inc.(a) | 8,025,301 | 203,922,898 | ||||||
Veritex Holdings, Inc.(a) | 3,643,425 | 65,399,479 | ||||||
Washington Federal, Inc.(a) | 4,342,121 | 111,245,140 | ||||||
Westamerica BanCorp(a) | 1,799,266 | 77,818,254 | ||||||
WSFS Financial Corp.(a) | 4,109,647 | 150,002,115 | ||||||
|
| |||||||
5,692,314,939 | ||||||||
Beverages — 0.3% | ||||||||
MGP Ingredients, Inc.(c) | 1,055,342 | 111,317,474 | ||||||
National Beverage Corp.(b) | 1,575,750 | 74,091,765 | ||||||
|
| |||||||
185,409,239 | ||||||||
Biotechnology — 1.5% | ||||||||
Arcus Biosciences, Inc.(b)(c) | 3,621,803 | 65,011,364 | ||||||
Avid Bioservices, Inc.(a)(b)(c) | 4,237,170 | 39,998,885 | ||||||
Catalyst Pharmaceuticals, Inc.(a)(b)(c) | 6,764,405 | 79,075,894 | ||||||
Cytokinetics, Inc.(a)(b)(c) | 6,481,567 | 190,946,964 | ||||||
Dynavax Technologies Corp.(a)(b)(c) | 8,696,061 | 128,440,821 | ||||||
Ironwood Pharmaceuticals, Inc., | 9,276,758 | 89,335,180 | ||||||
iTeos Therapeutics, Inc.(b)(c) | 1,788,938 | 19,588,871 | ||||||
Myriad Genetics, Inc.(a)(b)(c) | 5,528,531 | 88,677,637 | ||||||
REGENXBIO, Inc.(a)(b)(c) | 2,730,585 | 44,945,429 | ||||||
Vericel Corp.(a)(b)(c) | 3,216,665 | 107,822,611 | ||||||
Vir Biotechnology, Inc.(b)(c) | 5,801,073 | 54,356,054 | ||||||
Xencor, Inc.(a)(b)(c) | 4,092,423 | 82,462,323 | ||||||
|
| |||||||
990,662,033 | ||||||||
Building Products — 2.0% | ||||||||
AAON, Inc.(a)(c) | 4,581,925 | 260,574,075 | ||||||
American Woodmark Corp.(a)(b)(c) | 1,105,732 | 83,604,397 | ||||||
Apogee Enterprises, Inc.(a) | 1,490,644 | 70,179,520 | ||||||
AZZ, Inc.(a)(c) | 1,688,809 | 76,975,914 | ||||||
Gibraltar Industries, Inc.(a)(b) | 2,054,155 | 138,676,004 | ||||||
Griffon Corp.(a) | 2,765,042 | 109,689,216 | ||||||
Hayward Holdings, Inc.(b) | 8,488,266 | 119,684,551 | ||||||
Insteel Industries, Inc.(a)(c) | 1,312,053 | 42,589,240 | ||||||
Masterbrand, Inc.(a)(b)(c) | 8,620,835 | 104,743,145 | ||||||
PGT Innovations, Inc.(a)(b)(c) | 3,939,713 | 109,327,036 |
18 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Building Products (continued) | ||||||||
Quanex Building Products Corp.(a)(c) | 2,224,890 | $ | 62,675,151 | |||||
Resideo Technologies, Inc.(a)(b)(c) | 9,969,185 | 157,513,123 | ||||||
|
| |||||||
1,336,231,372 | ||||||||
Capital Markets — 1.3% | ||||||||
Artisan Partners Asset Management, Inc., Class A | 2,853,109 | 106,763,339 | ||||||
Avantax, Inc.(a)(b) | 2,483,784 | 63,535,195 | ||||||
B Riley Financial, Inc. | 1,114,626 | 45,688,520 | ||||||
Brightsphere Investment Group, Inc.(a)(c) | 2,186,859 | 42,403,196 | ||||||
Donnelley Financial Solutions, Inc.(a)(b)(c) | 1,684,228 | 94,788,352 | ||||||
Moelis & Co., Class A | 2,595,833 | 117,149,943 | ||||||
Piper Sandler Cos.(a) | 1,013,710 | 147,302,200 | ||||||
StoneX Group, Inc.(a)(b)(c) | 1,207,463 | 117,027,314 | ||||||
Virtus Investment Partners, Inc.(a) | 460,448 | 93,005,892 | ||||||
WisdomTree, Inc.(a) | 7,719,414 | 54,035,898 | ||||||
|
| |||||||
881,699,849 | ||||||||
Chemicals — 2.8% | ||||||||
AdvanSix, Inc.(a) | 1,837,336 | 57,104,403 | ||||||
American Vanguard Corp.(a)(c) | 1,840,976 | 20,121,868 | ||||||
Balchem Corp.(a) | 2,176,776 | 270,007,295 | ||||||
Hawkins, Inc.(a) | 1,296,458 | 76,296,553 | ||||||
HB Fuller Co.(a)(c) | 3,637,184 | 249,547,194 | ||||||
Ingevity Corp.(a)(b)(c) | 2,274,549 | 108,291,278 | ||||||
Innospec, Inc.(a) | 1,678,895 | 171,583,069 | ||||||
Koppers Holdings, Inc.(a)(c) | 1,409,312 | 55,738,290 | ||||||
Livent Corp.(a)(b)(c) | 12,133,959 | 223,386,185 | ||||||
Mativ Holdings, Inc.(a) | 3,694,806 | 52,687,934 | ||||||
Minerals Technologies, Inc.(a) | 2,197,292 | 120,323,710 | ||||||
Quaker Chemical Corp.(a)(c) | 935,639 | 149,702,240 | ||||||
Sensient Technologies Corp.(a) | 2,852,622 | 166,821,335 | ||||||
Stepan Co.(a) | 1,433,628 | 107,479,091 | ||||||
|
| |||||||
1,829,090,445 | ||||||||
Commercial Services & Supplies — 2.1% | ||||||||
ABM Industries, Inc.(a) | 4,466,026 | 178,685,700 | ||||||
Brady Corp., Class A, NVS | 3,099,870 | 170,244,860 | ||||||
CoreCivic, Inc.(a)(b) | 7,670,303 | 86,290,909 | ||||||
Deluxe Corp.(a) | 2,944,886 | 55,628,897 | ||||||
Enviri Corp.(a)(b)(c) | 5,389,818 | 38,914,486 | ||||||
GEO Group, Inc. (The)(a)(b) | 8,514,099 | 69,645,330 | ||||||
Healthcare Services Group, Inc.(a) | 5,011,661 | 52,271,624 | ||||||
HNI Corp.(a) | 3,142,871 | 108,837,623 | ||||||
Interface, Inc., Class A(a)(c) | 3,925,715 | 38,511,264 | ||||||
Liquidity Services, Inc.(b)(c) | 1,513,760 | 26,672,451 | ||||||
Matthews International Corp., Class A(a)(c) | 2,057,116 | 80,042,384 | ||||||
MillerKnoll, Inc.(a) | 5,111,137 | 124,967,300 | ||||||
OPENLANE, Inc.(a)(b)(c) | 7,390,122 | 110,260,620 | ||||||
Pitney Bowes, Inc. | 7,894,604 | 23,841,704 | ||||||
UniFirst Corp.(a)(c) | 1,019,787 | 166,235,479 | ||||||
Viad Corp.(a)(b)(c) | 1,411,013 | 36,968,541 | ||||||
|
| |||||||
1,368,019,172 | ||||||||
Communications Equipment — 1.1% | ||||||||
ADTRAN Holdings, Inc.(a) | 4,783,642 | 39,369,374 | ||||||
Clearfield, Inc.(a)(b)(c) | 877,588 | 25,151,672 | ||||||
Digi International, Inc.(a)(b)(c) | 2,428,522 | 65,570,094 | ||||||
Extreme Networks, Inc.(b)(c) | 5,838,562 | 141,351,586 | ||||||
Harmonic, Inc.(a)(b)(c) | 7,556,173 | 72,765,946 | ||||||
NetScout Systems, Inc.(a)(b)(c) | 4,871,261 | 136,492,733 | ||||||
Viasat, Inc.(b)(c) | 5,067,078 | 93,538,260 | ||||||
Viavi Solutions, Inc.(a)(b)(c) | 15,019,218 | 137,275,653 | ||||||
|
| |||||||
711,515,318 |
Security | Shares | Value | ||||||
Construction & Engineering — 1.6% |
| |||||||
Arcosa, Inc.(a) | 3,292,302 | $ | 236,716,514 | |||||
Comfort Systems U.S.A., Inc.(a)(c) | 2,415,118 | 411,560,258 | ||||||
Dycom Industries, Inc.(a)(b)(c) | 1,979,955 | 176,215,995 | ||||||
Granite Construction, Inc.(a) | 2,965,367 | 112,743,253 | ||||||
MYR Group, Inc.(a)(b)(c) | 1,128,220 | 152,038,927 | ||||||
|
| |||||||
1,089,274,947 | ||||||||
Consumer Finance — 0.9% | ||||||||
Bread Financial Holdings, Inc. | 1,781,705 | 60,934,311 | ||||||
Encore Capital Group, Inc.(a)(b)(c) | 1,585,642 | 75,730,262 | ||||||
Enova International, Inc.(a)(b)(c) | 2,078,661 | 105,741,485 | ||||||
EZCORP, Inc., Class A, NVS(b)(c) | 3,520,433 | 29,043,572 | ||||||
Green Dot Corp., Class A(a)(b)(c) | 3,019,896 | 42,067,151 | ||||||
Navient Corp. | 5,911,379 | 101,793,946 | ||||||
PRA Group, Inc.(a)(b)(c) | 2,650,923 | 50,924,231 | ||||||
PROG Holdings, Inc.(a)(b)(c) | 3,086,222 | 102,493,433 | ||||||
World Acceptance Corp.(b)(c) | 230,390 | 29,273,353 | ||||||
|
| |||||||
598,001,744 | ||||||||
Consumer Staples Distribution & Retail — 0.6% | ||||||||
Andersons, Inc. (The)(a) | 2,126,125 | 109,516,699 | ||||||
Chefs’ Warehouse, Inc. (The)(a)(b)(c) | 2,383,523 | 50,483,017 | ||||||
PriceSmart, Inc.(a) | 1,739,973 | 129,506,190 | ||||||
SpartanNash Co.(a) | 2,345,666 | 51,604,652 | ||||||
United Natural Foods, Inc.(a)(b)(c) | 3,956,542 | 55,945,504 | ||||||
|
| |||||||
397,056,062 | ||||||||
Containers & Packaging — 0.3% | ||||||||
Myers Industries, Inc.(a) | 2,487,113 | 44,593,936 | ||||||
O-I Glass, Inc.(a)(b)(c) | 10,469,291 | 175,151,238 | ||||||
|
| |||||||
219,745,174 | ||||||||
Diversified Consumer Services — 0.9% | ||||||||
Adtalem Global Education, Inc.(a)(b)(c) | 2,804,947 | 120,191,979 | ||||||
Frontdoor, Inc.(a)(b) | 5,424,235 | 165,927,349 | ||||||
Mister Car Wash, Inc.(b)(c) | 6,123,363 | 33,739,730 | ||||||
Perdoceo Education Corp.(a) | 4,429,797 | 75,749,529 | ||||||
Strategic Education, Inc.(a) | 1,486,147 | 111,832,562 | ||||||
Stride, Inc.(a)(b)(c) | 2,731,467 | 122,997,959 | ||||||
|
| |||||||
630,439,108 | ||||||||
Diversified REITs — 0.8% | ||||||||
Alexander & Baldwin, Inc.(a) | 4,903,440 | 82,034,551 | ||||||
American Assets Trust, Inc.(a) | 3,279,978 | 63,795,572 | ||||||
Armada Hoffler Properties, Inc.(a) | 4,590,973 | 47,011,564 | ||||||
Essential Properties Realty Trust, Inc.(a) | 10,533,380 | 227,837,009 | ||||||
Global Net Lease, Inc. | 8,365,926 | 80,396,549 | ||||||
|
| |||||||
501,075,245 | ||||||||
Diversified Telecommunication Services — 0.4% | ||||||||
ATN International, Inc. | 716,850 | 22,623,786 | ||||||
Cogent Communications Holdings, Inc.(a) | 2,937,475 | 181,829,702 | ||||||
Consolidated Communications Holdings, Inc.(b)(c) | 5,042,638 | 17,245,822 | ||||||
Lumen Technologies, Inc.(b)(c) | 47,061,267 | 66,826,999 | ||||||
|
| |||||||
288,526,309 | ||||||||
Electric Utilities — 0.3% | ||||||||
Otter Tail Corp.(a) | 2,816,232 | 213,808,333 | ||||||
|
| |||||||
Electrical Equipment — 0.4% | ||||||||
Encore Wire Corp.(a)(c) | 1,134,637 | 207,025,867 | ||||||
Powell Industries, Inc.(a) | 616,624 | 51,118,130 | ||||||
SunPower Corp.(b)(c) | 5,801,353 | 35,794,348 | ||||||
|
| |||||||
293,938,345 |
SCHEDULES OF INVESTMENTS | 19 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components — 4.1% |
| |||||||
Advanced Energy Industries, Inc.(a)(c) | 2,542,114 | $ | 262,142,796 | |||||
Arlo Technologies, Inc.(a)(b)(c) | 6,350,318 | 65,408,275 | ||||||
Badger Meter, Inc.(a)(c) | 1,979,490 | 284,789,226 | ||||||
Benchmark Electronics, Inc.(a) | 2,408,395 | 58,427,663 | ||||||
CTS Corp.(a) | 2,118,645 | 88,432,242 | ||||||
ePlus, Inc.(a)(b)(c) | 1,818,788 | 115,529,414 | ||||||
Fabrinet(a)(b)(c) | 2,450,699 | 408,335,467 | ||||||
Insight Enterprises, Inc.(a)(b)(c) | 2,041,542 | 297,044,361 | ||||||
Itron, Inc.(a)(b)(c) | 3,069,356 | 185,941,586 | ||||||
Knowles Corp.(a)(b)(c) | 6,153,799 | 91,137,763 | ||||||
Methode Electronics, Inc.(a) | 2,431,345 | 55,556,233 | ||||||
OSI Systems, Inc.(a)(b)(c) | 1,039,079 | 122,652,885 | ||||||
PC Connection, Inc. | 762,561 | 40,705,506 | ||||||
Plexus Corp.(a)(b)(c) | 1,855,454 | 172,520,113 | ||||||
Rogers Corp.(a)(b)(c) | 1,131,218 | 148,721,230 | ||||||
Sanmina Corp.(a)(b)(c) | 3,863,837 | 209,729,072 | ||||||
ScanSource, Inc.(a)(b)(c) | 1,681,167 | 50,956,172 | ||||||
TTM Technologies, Inc.(a)(b)(c) | 7,013,099 | 90,328,715 | ||||||
|
| |||||||
2,748,358,719 | ||||||||
Energy Equipment & Services — 2.5% | ||||||||
Archrock, Inc.(a) | 9,298,503 | 117,161,138 | ||||||
Bristow Group, Inc.(a)(b)(c) | 1,618,076 | 45,581,201 | ||||||
Core Laboratories, Inc.(a)(c) | 3,151,698 | 75,672,269 | ||||||
Dril-Quip, Inc.(a)(b)(c) | 2,307,393 | 64,999,261 | ||||||
Helix Energy Solutions Group, Inc.(a)(b)(c) | 9,571,864 | 106,917,721 | ||||||
Helmerich & Payne, Inc.(a) | 6,713,095 | 283,024,085 | ||||||
Liberty Energy, Inc., Class A(a) | 10,469,137 | 193,888,417 | ||||||
Nabors Industries Ltd.(a)(b) | 605,785 | 74,596,365 | ||||||
Oceaneering International, Inc.(a)(b)(c) | 6,804,429 | 175,009,914 | ||||||
Oil States International, Inc.(a)(b)(c) | 4,316,292 | 36,127,364 | ||||||
Patterson-UTI Energy, Inc.(a)(c) | 21,648,510 | 299,615,378 | ||||||
ProPetro Holding Corp.(a)(b)(c) | 5,862,796 | 62,321,521 | ||||||
RPC, Inc.(c) | 5,750,190 | 51,406,699 | ||||||
U.S. Silica Holdings, Inc.(a)(b)(c) | 5,206,717 | 73,102,307 | ||||||
|
| |||||||
1,659,423,640 | ||||||||
Entertainment — 0.5% | ||||||||
Cinemark Holdings, Inc.(a)(b)(c) | 7,309,059 | 134,121,233 | ||||||
Madison Square Garden Sports Corp., Class A(a) | 1,124,831 | 198,307,705 | ||||||
Marcus Corp. (The)(a)(c) | 1,662,371 | 25,766,751 | ||||||
|
| |||||||
358,195,689 | ||||||||
Financial Services — 1.4% | ||||||||
EVERTEC, Inc.(a) | 4,363,732 | 162,243,556 | ||||||
Jackson Financial, Inc., Class A | 1,405,238 | 53,708,196 | ||||||
Mr. Cooper Group, Inc.(a)(b)(c) | 4,476,926 | 239,784,157 | ||||||
NMI Holdings, Inc., Class A(a)(b) | 5,555,419 | 150,496,301 | ||||||
Payoneer Global, Inc.(b) | 14,803,769 | 90,599,066 | ||||||
Radian Group, Inc. | 2,974,461 | 74,688,716 | ||||||
Walker & Dunlop, Inc.(a) | 2,251,375 | 167,142,080 | ||||||
|
| |||||||
938,662,072 | ||||||||
Food Products — 1.9% | ||||||||
B&G Foods, Inc.(a) | 4,884,563 | 48,308,328 | ||||||
Calavo Growers, Inc.(a) | 1,201,609 | 30,316,595 | ||||||
Cal-Maine Foods, Inc.(a) | 2,744,538 | 132,890,530 | ||||||
Fresh Del Monte Produce, Inc. | 2,274,237 | 58,766,284 | ||||||
Hain Celestial Group, Inc. (The)(a)(b)(c) | 6,043,846 | 62,674,683 | ||||||
Hostess Brands, Inc., Class A(a)(b)(c) | 8,973,517 | 298,907,851 | ||||||
J & J Snack Foods Corp.(a) | 1,041,934 | 170,512,499 | ||||||
John B Sanfilippo & Son, Inc.(a) | 604,816 | 59,755,821 | ||||||
Simply Good Foods Co. (The)(a)(b) | 6,116,405 | 211,138,301 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Tootsie Roll Industries, Inc.(c) | 1,175,755 | $ | 35,108,044 | |||||
TreeHouse Foods, Inc.(a)(b)(c) | 3,463,982 | 150,960,336 | ||||||
|
| |||||||
1,259,339,272 | ||||||||
Gas Utilities — 0.3% | ||||||||
Chesapeake Utilities Corp.(a)(c) | 1,201,609 | 117,457,280 | ||||||
Northwest Natural Holding Co.(a) | 2,436,759 | 92,986,723 | ||||||
|
| |||||||
210,444,003 | ||||||||
Ground Transportation — 0.7% | ||||||||
ArcBest Corp.(a)(c) | 1,622,112 | 164,887,685 | ||||||
Heartland Express, Inc.(c) | 3,094,664 | 45,460,614 | ||||||
Marten Transport Ltd.(c) | 3,897,341 | 76,816,591 | ||||||
RXO, Inc.(a)(b)(c) | 7,898,354 | 155,834,524 | ||||||
|
| |||||||
442,999,414 | ||||||||
Health Care Equipment & Supplies — 2.5% | ||||||||
Artivion, Inc.(a)(b)(c) | 2,633,753 | 39,927,695 | ||||||
Avanos Medical, Inc.(a)(b)(c) | 3,164,722 | 63,990,679 | ||||||
CONMED Corp.(a)(c) | 2,075,496 | 209,313,772 | ||||||
Embecta Corp.(a) | 3,871,891 | 58,271,960 | ||||||
Glaukos Corp.(a)(b)(c) | 3,284,738 | 247,176,534 | ||||||
Integer Holdings Corp.(a)(b)(c) | 2,248,880 | 176,379,658 | ||||||
LeMaitre Vascular, Inc.(a) | 1,337,791 | 72,882,854 | ||||||
Merit Medical Systems, Inc.(a)(b)(c) | 3,891,389 | 268,583,669 | ||||||
Omnicell, Inc.(a)(b)(c) | 3,052,607 | 137,489,419 | ||||||
OraSure Technologies, Inc.(a)(b)(c) | 4,960,489 | 29,415,700 | ||||||
Orthofix Medical, Inc.(a)(b)(c) | 2,481,952 | 31,917,903 | ||||||
STAAR Surgical Co.(a)(b)(c) | 3,274,599 | 131,573,388 | ||||||
Tandem Diabetes Care, Inc.(a)(b)(c) | 4,393,890 | 91,261,095 | ||||||
UFP Technologies, Inc.(a)(b)(c) | 474,820 | 76,659,689 | ||||||
Varex Imaging Corp.(a)(b)(c) | 2,727,675 | 51,253,013 | ||||||
|
| |||||||
1,686,097,028 | ||||||||
Health Care Providers & Services — 3.1% | ||||||||
AdaptHealth Corp.(b)(c) | 5,517,327 | 50,207,676 | ||||||
Addus HomeCare Corp.(a)(b)(c) | 1,094,793 | 93,265,416 | ||||||
Agiliti, Inc.(b)(c) | 2,378,962 | 15,439,463 | ||||||
AMN Healthcare Services, Inc.(a)(b)(c) | 2,564,866 | 218,475,286 | ||||||
Apollo Medical Holdings, Inc.(a)(b)(c) | 2,842,463 | 87,689,984 | ||||||
Community Health Systems, Inc.(a)(b)(c) | 8,595,953 | 24,928,264 | ||||||
CorVel Corp.(b)(c) | 612,412 | 120,430,820 | ||||||
Cross Country Healthcare, Inc.(a)(b)(c) | 2,272,268 | 56,329,524 | ||||||
Enhabit, Inc.(a)(b)(c) | 3,383,975 | 38,069,719 | ||||||
Ensign Group, Inc. (The)(a)(c) | 3,794,573 | 352,629,669 | ||||||
Fulgent Genetics, Inc.(b)(c) | 1,373,990 | 36,740,493 | ||||||
ModivCare, Inc.(a)(b)(c) | 834,386 | 26,291,503 | ||||||
NeoGenomics, Inc.(a)(b)(c) | 8,613,750 | 105,949,125 | ||||||
Owens & Minor, Inc.(a)(b) | 5,167,168 | 83,501,435 | ||||||
Pediatrix Medical Group, Inc.(a)(b)(c) | 5,589,935 | 71,048,074 | ||||||
Premier, Inc., Class A(a) | 8,039,870 | 172,857,205 | ||||||
Privia Health Group, Inc.(a)(b)(c) | 6,893,949 | 158,560,827 | ||||||
RadNet, Inc.(b)(c) | 3,215,114 | 90,634,064 | ||||||
Select Medical Holdings Corp.(a) | 7,039,211 | 177,880,862 | ||||||
U.S. Physical Therapy, Inc.(a) | 1,011,885 | 92,820,211 | ||||||
|
| |||||||
2,073,749,620 | ||||||||
Health Care REITs — 0.5% | ||||||||
CareTrust REIT, Inc.(a) | 6,716,374 | 137,685,667 | ||||||
Community Healthcare Trust, Inc.(a) | 1,668,094 | 49,542,392 | ||||||
LTC Properties, Inc.(a) | 2,795,825 | 89,829,857 | ||||||
Universal Health Realty Income Trust(a) | 859,328 | 34,742,631 | ||||||
|
| |||||||
311,800,547 | ||||||||
Health Care Technology — 0.7% | ||||||||
Certara, Inc.(b)(c) | 7,227,740 | 105,091,340 |
20 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Technology (continued) | ||||||||
HealthStream, Inc.(a)(c) | 1,636,898 | $ | 35,324,259 | |||||
NextGen Healthcare, Inc.(a)(b)(c) | 3,665,141 | 86,973,796 | ||||||
Schrodinger, Inc.(a)(b)(c) | 3,683,943 | 104,145,069 | ||||||
Simulations Plus, Inc.(a)(c) | 1,076,345 | 44,883,587 | ||||||
Veradigm, Inc.(a)(b)(c) | 7,376,957 | 96,933,215 | ||||||
|
| |||||||
473,351,266 | ||||||||
Hotel & Resort REITs — 1.2% | ||||||||
Apple Hospitality REIT, Inc.(a) | 14,366,635 | 220,384,181 | ||||||
Chatham Lodging Trust(a) | 3,301,157 | 31,592,072 | ||||||
DiamondRock Hospitality Co.(a)(c) | 14,153,487 | 113,652,501 | ||||||
Pebblebrook Hotel Trust(a)(c) | 8,135,997 | 110,568,199 | ||||||
Service Properties Trust(a) | 11,171,759 | 85,910,827 | ||||||
Summit Hotel Properties, Inc.(a) | 7,268,666 | 42,158,263 | ||||||
Sunstone Hotel Investors, Inc.(a) | 13,988,626 | 130,793,653 | ||||||
Xenia Hotels & Resorts, Inc.(a) | 7,241,982 | 85,310,548 | ||||||
|
| |||||||
820,370,244 | ||||||||
Hotels, Restaurants & Leisure — 2.1% | ||||||||
BJ’s Restaurants, Inc.(a)(b) | 1,593,023 | 37,372,320 | ||||||
Bloomin’ Brands, Inc.(a) | 5,880,581 | 144,603,487 | ||||||
Brinker International, Inc.(a)(b)(c) | 2,990,821 | 94,480,035 | ||||||
Cheesecake Factory, Inc. (The)(a) | 3,185,065 | 96,507,469 | ||||||
Chuy’s Holdings, Inc.(a)(b)(c) | 1,218,269 | 43,346,011 | ||||||
Cracker Barrel Old Country Store, Inc.(a) | 1,495,647 | 100,507,478 | ||||||
Dave & Buster’s Entertainment, Inc.(a)(b)(c) | 2,319,854 | 85,996,988 | ||||||
Dine Brands Global, Inc.(a) | 1,049,953 | 51,920,176 | ||||||
Golden Entertainment, Inc.(a) | 1,461,780 | 49,963,640 | ||||||
Jack in the Box, Inc.(a) | 1,357,638 | 93,758,480 | ||||||
Monarch Casino & Resort, Inc. | 904,779 | 56,186,776 | ||||||
Papa John’s International, Inc.(a)(c) | 2,210,323 | 150,788,235 | ||||||
Sabre Corp.(a)(b)(c) | 22,438,168 | 100,747,374 | ||||||
Shake Shack, Inc., Class A(a)(b)(c) | 2,531,161 | 146,984,519 | ||||||
Six Flags Entertainment Corp.(a)(b) | 4,835,887 | 113,691,703 | ||||||
|
| |||||||
1,366,854,691 | ||||||||
Household Durables — 3.1% | ||||||||
Cavco Industries, Inc.(a)(b)(c) | 544,841 | 144,742,460 | ||||||
Century Communities, Inc.(a) | 1,924,102 | 128,491,532 | ||||||
Ethan Allen Interiors, Inc.(a) | 1,540,757 | 46,068,634 | ||||||
Green Brick Partners, Inc.(b)(c) | 1,715,763 | 71,221,322 | ||||||
Installed Building Products, Inc.(a) | 1,592,145 | 198,842,989 | ||||||
iRobot Corp.(a)(b)(c) | 1,863,066 | 70,610,201 | ||||||
La-Z-Boy, Inc.(a) | 2,924,535 | 90,309,641 | ||||||
LGI Homes, Inc.(a)(b)(c) | 1,383,099 | 137,604,520 | ||||||
M/I Homes, Inc.(a)(b)(c) | 1,876,924 | 157,736,693 | ||||||
MDC Holdings, Inc.(a) | 4,026,538 | 166,014,162 | ||||||
Meritage Homes Corp.(a) | 2,482,293 | 303,807,840 | ||||||
Newell Brands, Inc.(a) | 25,728,592 | 232,329,186 | ||||||
Sonos, Inc.(a)(b)(c) | 8,664,364 | 111,856,939 | ||||||
Tri Pointe Homes, Inc.(a)(b)(c) | 6,683,850 | 182,803,297 | ||||||
|
| |||||||
2,042,439,416 | ||||||||
Household Products — 0.7% | ||||||||
Central Garden & Pet Co.(a)(b)(c) | 643,834 | 28,418,833 | ||||||
Central Garden & Pet Co., Class A, NVS(b) | 2,767,946 | 110,966,955 | ||||||
Energizer Holdings, Inc.(a) | 4,488,636 | 143,815,897 | ||||||
WD-40 Co.(a)(c) | 915,743 | 186,115,607 | ||||||
|
| |||||||
469,317,292 | ||||||||
Industrial REITs — 0.5% | ||||||||
Innovative Industrial Properties, Inc.(a) | 1,893,194 | 143,239,058 | ||||||
LXP Industrial Trust(a) | 19,756,083 | 175,829,139 | ||||||
|
| |||||||
319,068,197 |
Security | Shares | Value | ||||||
Insurance — 2.6% | ||||||||
Ambac Financial Group, Inc.(b)(c) | 2,217,455 | $ | 26,742,507 | |||||
American Equity Investment Life Holding Co.(a)(b) | 4,176,339 | 224,018,824 | ||||||
AMERISAFE, Inc.(a) | 1,294,976 | 64,839,448 | ||||||
Assured Guaranty Ltd.(a) | 3,756,918 | 227,368,677 | ||||||
Employers Holdings, Inc.(a) | 1,726,870 | 68,988,456 | ||||||
Genworth Financial, Inc., Class A(a)(b)(c) | 29,816,208 | 174,722,979 | ||||||
Goosehead Insurance, Inc., Class A(a)(b)(c) | 1,614,471 | 120,326,524 | ||||||
HCI Group, Inc. | 406,511 | 22,069,482 | ||||||
Horace Mann Educators Corp.(a) | 2,732,195 | 80,271,889 | ||||||
James River Group Holdings Ltd.(a) | 2,544,137 | 39,052,503 | ||||||
Lincoln National Corp. | 7,525,199 | 185,797,163 | ||||||
Mercury General Corp. | 1,794,465 | 50,298,854 | ||||||
Palomar Holdings, Inc.(a)(b)(c) | 1,670,511 | 84,778,433 | ||||||
ProAssurance Corp.(a) | 3,425,318 | 64,704,257 | ||||||
Safety Insurance Group, Inc.(a) | 998,712 | 68,102,171 | ||||||
SiriusPoint Ltd.(b)(c) | 5,973,873 | 60,754,288 | ||||||
Stewart Information Services Corp.(a) | 1,833,755 | 80,318,469 | ||||||
Trupanion, Inc.(a)(b)(c) | 2,402,248 | 67,743,394 | ||||||
United Fire Group, Inc.(a) | 1,432,376 | 28,289,426 | ||||||
|
| |||||||
1,739,187,744 | ||||||||
Interactive Media & Services — 0.9% | ||||||||
Cargurus, Inc., Class A(a)(b)(c) | 5,858,762 | 102,645,510 | ||||||
Cars.com, Inc.(a)(b)(c) | 4,173,589 | 70,366,711 | ||||||
QuinStreet, Inc.(a)(b)(c) | 3,473,753 | 31,159,564 | ||||||
Shutterstock, Inc. | 1,632,083 | 62,100,758 | ||||||
TripAdvisor, Inc.(a)(b)(c) | 7,269,053 | 120,520,899 | ||||||
Yelp, Inc.(a)(b)(c) | 4,639,412 | 192,953,145 | ||||||
|
| |||||||
579,746,587 | ||||||||
IT Services — 0.2% | ||||||||
Perficient, Inc.(a)(b)(c) | 2,350,624 | 136,007,105 | ||||||
|
| |||||||
Leisure Products — 0.3% | ||||||||
Sturm Ruger & Co., Inc.(a) | 1,196,602 | 62,366,896 | ||||||
Vista Outdoor, Inc.(a)(b)(c) | 3,916,355 | 129,709,678 | ||||||
|
| |||||||
192,076,574 | ||||||||
Life Sciences Tools & Services — 0.4% | ||||||||
BioLife Solutions, Inc.(a)(b)(c) | 2,320,391 | 32,044,600 | ||||||
Cytek Biosciences, Inc.(b)(c) | 6,726,101 | 37,128,078 | ||||||
Fortrea Holdings, Inc.(a)(b)(c) | 5,982,062 | 171,027,153 | ||||||
Mesa Laboratories, Inc.(a)(c) | 345,682 | 36,320,808 | ||||||
OmniAb, Inc., 12.50 Earnout Shares(d) | 450,637 | — | ||||||
OmniAb, Inc., 15.00 Earnout Shares(d) | 450,637 | — | ||||||
|
| |||||||
276,520,639 | ||||||||
Machinery — 5.0% | ||||||||
3D Systems Corp.(a)(b)(c) | 9,018,673 | 44,281,684 | ||||||
Alamo Group, Inc.(a) | 697,420 | 120,556,021 | ||||||
Albany International Corp., Class A(a)(c) | 2,105,135 | 181,631,048 | ||||||
Astec Industries, Inc.(a) | 1,535,139 | 72,320,398 | ||||||
Barnes Group, Inc.(a) | 3,418,211 | 116,116,628 | ||||||
CIRCOR International, Inc.(a)(b) | 1,376,674 | 76,749,575 | ||||||
Enerpac Tool Group Corp., Class A(a)(c) | 3,787,995 | 100,116,708 | ||||||
EnPro Industries, Inc.(a) | 1,411,390 | 171,046,354 | ||||||
ESCO Technologies, Inc.(a) | 1,740,809 | 181,810,092 | ||||||
Federal Signal Corp.(a)(c) | 4,118,110 | 245,974,710 | ||||||
Franklin Electric Co., Inc.(a) | 2,686,158 | 239,685,878 | ||||||
Greenbrier Cos., Inc. (The)(a) | 2,086,780 | 83,471,200 | ||||||
Hillenbrand, Inc.(a) | 4,720,502 | 199,724,440 | ||||||
John Bean Technologies Corp.(a)(c) | 2,149,632 | 226,012,308 | ||||||
Kennametal, Inc.(a) | 5,381,891 | 133,901,448 | ||||||
Lindsay Corp.(a) | 743,298 | 87,471,309 |
SCHEDULES OF INVESTMENTS | 21 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Mueller Industries, Inc.(a) | 3,833,596 | $ | 288,133,075 | |||||
Proto Labs, Inc.(a)(b)(c) | 1,761,847 | 46,512,761 | ||||||
SPX Technologies, Inc.(a)(b)(c) | 3,078,136 | 250,560,270 | ||||||
Standex International Corp.(a) | 800,015 | 116,554,185 | ||||||
Tennant Co.(a) | 1,254,674 | 93,034,077 | ||||||
Titan International, Inc.(a)(b)(c) | 3,472,841 | 46,640,255 | ||||||
Trinity Industries, Inc.(a) | 5,526,589 | 134,572,442 | ||||||
Wabash National Corp.(a)(c) | 3,173,239 | 67,018,808 | ||||||
|
| |||||||
3,323,895,674 | ||||||||
Marine Transportation — 0.3% | ||||||||
Matson, Inc.(a) | 2,382,635 | 211,387,377 | ||||||
|
| |||||||
Media — 0.6% | ||||||||
AMC Networks, Inc., Class A(a)(b)(c) | 2,055,336 | 24,211,858 | ||||||
DISH Network Corp., Class A(a)(b)(c) | 16,766,523 | 98,251,825 | ||||||
EW Scripps Co. (The), Class A, | 3,970,408 | 21,757,836 | ||||||
John Wiley & Sons, Inc., Class A(a) | 2,873,177 | 106,795,989 | ||||||
Scholastic Corp., NVS(a) | 1,882,282 | 71,790,235 | ||||||
TechTarget, Inc.(a)(b)(c) | 1,709,688 | 51,906,128 | ||||||
Thryv Holdings, Inc.(a)(b)(c) | 2,057,529 | 38,619,819 | ||||||
|
| |||||||
413,333,690 | ||||||||
Metals & Mining — 1.8% | ||||||||
ATI, Inc.(a)(b)(c) | 8,681,785 | 357,255,453 | ||||||
Carpenter Technology Corp.(a) | 3,279,265 | 220,399,401 | ||||||
Century Aluminum Co.(b)(c) | 3,495,659 | 25,133,788 | ||||||
Compass Minerals International, Inc.(a) | 2,277,616 | 63,659,367 | ||||||
Haynes International, Inc.(a) | 860,209 | 40,016,923 | ||||||
Kaiser Aluminum Corp.(a) | 1,081,152 | 81,367,500 | ||||||
Materion Corp.(a)(c) | 1,393,360 | 141,997,318 | ||||||
Olympic Steel, Inc.(a) | 665,485 | 37,406,912 | ||||||
SunCoke Energy, Inc.(a) | 5,654,948 | 57,397,722 | ||||||
TimkenSteel Corp.(a)(b)(c) | 2,611,212 | 56,715,525 | ||||||
Warrior Met Coal, Inc.(c) | 2,470,246 | 126,180,166 | ||||||
|
| |||||||
1,207,530,075 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 1.9% | ||||||||
Apollo Commercial Real Estate Finance, Inc.(a) | 8,780,271 | 88,944,145 | ||||||
Arbor Realty Trust, Inc.(c) | 8,089,649 | 122,800,872 | ||||||
ARMOUR Residential REIT, Inc.(a) | 15,426,119 | 65,561,006 | ||||||
Blackstone Mortgage Trust, Inc., Class A(a) | 11,634,126 | 253,042,240 | ||||||
Ellington Financial, Inc.(a) | 4,592,288 | 57,265,831 | ||||||
Franklin BSP Realty Trust, Inc.(a) | 5,551,696 | 73,504,455 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) | 7,233,157 | 153,342,928 | ||||||
Invesco Mortgage Capital, Inc.(a) | 3,009,888 | 30,128,979 | ||||||
KKR Real Estate Finance Trust, Inc.(a) | 3,919,424 | 46,523,563 | ||||||
New York Mortgage Trust, Inc.(a)(c) | 6,160,890 | 52,305,956 | ||||||
PennyMac Mortgage Investment Trust(a) | 5,857,781 | 72,636,484 | ||||||
Ready Capital Corp.(a) | 10,667,744 | 107,850,892 | ||||||
Redwood Trust, Inc.(a) | 7,708,927 | 54,964,650 | ||||||
Two Harbors Investment Corp.(a) | 6,492,861 | 85,965,480 | ||||||
|
| |||||||
1,264,837,481 | ||||||||
Multi-Utilities — 0.3% | ||||||||
Avista Corp.(a) | 5,167,191 | 167,261,973 | ||||||
Unitil Corp.(a) | 1,087,518 | 46,447,894 | ||||||
|
| |||||||
213,709,867 | ||||||||
Office REITs — 1.0% | ||||||||
Brandywine Realty Trust(a) | 11,631,073 | 52,805,071 | ||||||
Douglas Emmett, Inc. | 8,150,864 | 104,005,025 | ||||||
Easterly Government Properties, Inc.(a) | 6,272,327 | 71,692,698 | ||||||
Highwoods Properties, Inc.(a) | 7,138,258 | 147,119,497 | ||||||
Hudson Pacific Properties, Inc.(a) | 8,539,940 | 56,790,601 |
Security | Shares | Value | ||||||
Office REITs (continued) | ||||||||
JBG SMITH Properties(a) | 6,355,374 | $ | 91,898,708 | |||||
SL Green Realty Corp.(a)(c) | 4,315,743 | 160,977,214 | ||||||
|
| |||||||
685,288,814 | ||||||||
Oil, Gas & Consumable Fuels — 2.8% | ||||||||
California Resources Corp.(a) | 4,376,793 | 245,144,176 | ||||||
Callon Petroleum Co.(a)(b)(c) | 3,773,473 | 147,618,264 | ||||||
Comstock Resources, Inc. | 6,204,736 | 68,438,238 | ||||||
CONSOL Energy, Inc.(a) | 1,943,600 | 203,903,076 | ||||||
CVR Energy, Inc. | 1,968,390 | 66,984,312 | ||||||
Dorian LPG Ltd.(a) | 2,292,482 | 65,863,008 | ||||||
Green Plains, Inc.(a)(b)(c) | 3,655,598 | 110,033,500 | ||||||
Northern Oil & Gas, Inc.(a) | 5,652,633 | 227,405,426 | ||||||
Par Pacific Holdings, Inc.(b)(c) | 2,888,579 | 103,815,529 | ||||||
REX American Resources Corp.(a)(b)(c) | 1,022,092 | 41,619,586 | ||||||
SM Energy Co.(a) | 8,012,072 | 317,678,655 | ||||||
Talos Energy, Inc.(a)(b)(c) | 6,784,520 | 111,537,509 | ||||||
Vital Energy, Inc.(a)(b)(c) | 1,130,053 | 62,627,537 | ||||||
World Kinect Corp.(a) | 4,064,337 | 91,163,079 | ||||||
|
| |||||||
1,863,831,895 | ||||||||
Paper & Forest Products — 0.3% | ||||||||
Clearwater Paper Corp.(a)(b)(c) | 1,128,849 | 40,920,776 | ||||||
Mercer International, Inc. | 2,966,658 | 25,453,926 | ||||||
Sylvamo Corp.(a) | 2,402,624 | 105,571,299 | ||||||
|
| |||||||
171,946,001 | ||||||||
Passenger Airlines — 0.5% | ||||||||
Allegiant Travel Co.(a) | 1,021,301 | 78,497,195 | ||||||
Hawaiian Holdings, Inc.(a)(b)(c) | 3,490,846 | 22,097,055 | ||||||
JetBlue Airways Corp.(a)(b)(c) | 22,500,168 | 103,500,773 | ||||||
SkyWest, Inc.(a)(b)(c) | 2,841,470 | 119,171,252 | ||||||
Sun Country Airlines Holdings, Inc.(b)(c) | 2,724,140 | 40,426,238 | ||||||
|
| |||||||
363,692,513 | ||||||||
Personal Care Products — 1.3% | ||||||||
Edgewell Personal Care Co.(a) | 3,430,702 | 126,798,746 | ||||||
elf Beauty, Inc.(a)(b)(c) | 3,676,823 | 403,825,470 | ||||||
Inter Parfums, Inc. | 1,207,761 | 162,250,613 | ||||||
Medifast, Inc.(a) | 735,190 | 55,028,972 | ||||||
Nu Skin Enterprises, Inc., Class A(a) | 3,373,092 | 71,543,281 | ||||||
USANA Health Sciences, Inc.(b)(c) | 755,856 | 44,300,720 | ||||||
|
| |||||||
863,747,802 | ||||||||
Pharmaceuticals — 1.5% | ||||||||
Amphastar Pharmaceuticals, Inc.(a)(b)(c) | 2,574,298 | 118,391,965 | ||||||
ANI Pharmaceuticals, Inc.(a)(b)(c) | 1,082,577 | 62,854,421 | ||||||
Collegium Pharmaceutical, Inc.(a)(b)(c) | 2,345,124 | 52,413,521 | ||||||
Corcept Therapeutics, Inc.(a)(b)(c) | 6,092,894 | 166,000,897 | ||||||
Harmony Biosciences Holdings, Inc.(b)(c) | 2,268,578 | 74,341,301 | ||||||
Innoviva, Inc.(a)(b)(c) | 3,870,679 | 50,280,120 | ||||||
Ligand Pharmaceuticals, Inc.(a)(b)(c) | 1,101,453 | 65,999,064 | ||||||
Pacira BioSciences, Inc.(a)(b)(c) | 3,133,955 | 96,149,739 | ||||||
Phibro Animal Health Corp., Class A(a) | 1,374,179 | 17,548,266 | �� | |||||
Prestige Consumer Healthcare, Inc.(a)(b)(c) | 3,344,760 | 191,286,824 | ||||||
Supernus Pharmaceuticals, Inc.(a)(b)(c) | 3,685,976 | 101,622,358 | ||||||
|
| |||||||
996,888,476 | ||||||||
Professional Services — 1.2% | ||||||||
CSG Systems International, Inc.(a) | 2,053,540 | 104,976,965 | ||||||
Forrester Research, Inc.(b)(c) | 778,849 | 22,508,736 | ||||||
Heidrick & Struggles International, Inc.(a) | 1,351,967 | 33,826,214 | ||||||
Kelly Services, Inc., Class A, NVS(c) | 2,166,252 | 39,404,124 | ||||||
Korn Ferry(a) | 3,617,936 | 171,634,884 | ||||||
NV5 Global, Inc.(a)(b)(c) | 858,281 | 82,592,381 | ||||||
Resources Connection, Inc.(a) | 2,161,397 | 32,226,429 |
22 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Professional Services (continued) | ||||||||
TrueBlue, Inc.(a)(b) | 2,094,883 | $ | 30,731,934 | |||||
TTEC Holdings, Inc. | 1,281,608 | 33,603,762 | ||||||
Verra Mobility Corp., Class A(a)(b)(c) | 11,460,297 | 214,307,554 | ||||||
|
| |||||||
765,812,983 | ||||||||
Real Estate Management & Development — 0.8% | ||||||||
Anywhere Real Estate, Inc.(a)(b)(c) | 7,561,500 | 48,620,445 | ||||||
Cushman & Wakefield PLC(b)(c) | 9,581,275 | 73,009,315 | ||||||
eXp World Holdings, Inc.(c) | 5,172,829 | 84,006,743 | ||||||
Kennedy-Wilson Holdings, Inc.(a) | 8,003,673 | 117,974,140 | ||||||
Marcus & Millichap, Inc.(c) | 1,644,864 | 48,260,310 | ||||||
St. Joe Co. (The) | 2,404,092 | 130,614,318 | ||||||
|
| |||||||
502,485,271 | ||||||||
Residential REITs — 0.4% | ||||||||
Centerspace(a) | 1,009,632 | 60,840,424 | ||||||
Elme Communities(a) | 5,929,562 | 80,879,226 | ||||||
NexPoint Residential Trust, Inc.(a) | 1,532,940 | 49,330,009 | ||||||
Veris Residential, Inc.(a) | 5,407,909 | 89,230,498 | ||||||
|
| |||||||
280,280,157 | ||||||||
Retail REITs — 1.9% | ||||||||
Acadia Realty Trust(a) | 6,426,835 | 92,225,082 | ||||||
Getty Realty Corp.(a) | 3,102,819 | 86,041,171 | ||||||
Macerich Co. (The)(a) | 14,533,590 | 158,561,467 | ||||||
Phillips Edison & Co., Inc.(a) | 7,926,587 | 265,857,728 | ||||||
Retail Opportunity Investments Corp.(a) | 8,507,467 | 105,322,441 | ||||||
RPT Realty(a) | 5,393,684 | 56,957,303 | ||||||
Saul Centers, Inc. | 873,551 | 30,810,144 | ||||||
SITE Centers Corp. | 10,042,064 | 123,818,649 | ||||||
Tanger Factory Outlet Centers, Inc.(a)(c) | 7,101,509 | 160,494,103 | ||||||
Urban Edge Properties(a) | 7,942,756 | 121,206,457 | ||||||
Whitestone REIT(a) | 3,177,421 | 30,598,564 | ||||||
|
| |||||||
1,231,893,109 | ||||||||
Semiconductors & Semiconductor Equipment — 4.3% | ||||||||
Alpha & Omega Semiconductor Ltd.(a)(b) | 1,513,688 | 45,168,450 | ||||||
Axcelis Technologies, Inc.(a)(b)(c) | 2,215,734 | 361,275,429 | ||||||
CEVA, Inc.(a)(b)(c) | 1,597,115 | 30,968,060 | ||||||
Cohu, Inc.(a)(b)(c) | 3,213,765 | 110,682,067 | ||||||
Diodes, Inc.(a)(b)(c) | 3,088,873 | 243,526,747 | ||||||
FormFactor, Inc.(a)(b)(c) | 5,243,156 | 183,195,871 | ||||||
Ichor Holdings Ltd.(a)(b)(c) | 1,976,392 | 61,189,096 | ||||||
Kulicke & Soffa Industries, Inc.(a)(c) | 3,812,926 | 185,422,591 | ||||||
MaxLinear, Inc.(a)(b)(c) | 4,980,442 | 110,814,834 | ||||||
Onto Innovation, Inc.(a)(b)(c) | 3,312,836 | 422,452,847 | ||||||
PDF Solutions, Inc.(a)(b)(c) | 2,059,378 | 66,723,847 | ||||||
Photronics, Inc.(a)(b)(c) | 4,221,049 | 85,307,400 | ||||||
Rambus, Inc.(a)(b)(c) | 7,368,297 | 411,077,290 | ||||||
Semtech Corp.(a)(b)(c) | 4,318,283 | 111,195,787 | ||||||
SiTime Corp.(a)(b)(c) | 1,154,665 | 131,920,476 | ||||||
SMART Global Holdings, Inc.(a)(b)(c) | 3,380,455 | 82,314,079 | ||||||
Ultra Clean Holdings, Inc.(a)(b)(c) | 3,017,891 | 89,540,826 | ||||||
Veeco Instruments, Inc.(a)(b)(c) | 3,804,338 | 106,939,941 | ||||||
|
| |||||||
2,839,715,638 | ||||||||
Software — 2.7% | ||||||||
A10 Networks, Inc.(a) | 4,703,536 | 70,694,146 | ||||||
Adeia, Inc.(a) | 7,007,031 | 74,835,091 | ||||||
Agilysys, Inc.(a)(b)(c) | 1,369,467 | 90,603,937 | ||||||
Alarm.com Holdings, Inc.(a)(b)(c) | 3,369,542 | 206,013,798 | ||||||
Cerence, Inc.(a)(b)(c) | 2,723,151 | 55,470,586 | ||||||
Consensus Cloud Solutions, Inc.(a)(b)(c) | 1,238,482 | 31,184,977 | ||||||
Digital Turbine, Inc.(a)(b)(c) | 6,113,441 | 36,986,318 | ||||||
DoubleVerify Holdings, Inc.(a)(b)(c) | 8,477,011 | 236,932,457 |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
Ebix, Inc.(a)(c) | 1,667,153 | $ | 16,471,472 | |||||
InterDigital, Inc.(a) | 1,782,938 | 143,062,945 | ||||||
LiveRamp Holdings, Inc.(a)(b) | 4,468,987 | 128,885,585 | ||||||
N-able, Inc.(b)(c) | 4,682,756 | 60,407,552 | ||||||
OneSpan, Inc.(a)(b)(c) | 2,431,710 | 26,140,883 | ||||||
Progress Software Corp.(a) | 2,927,968 | 153,952,557 | ||||||
SPS Commerce, Inc.(a)(b)(c) | 2,474,598 | 422,191,165 | ||||||
Xperi, Inc.(a)(b)(c) | 2,926,174 | 28,852,076 | ||||||
|
| |||||||
1,782,685,545 | ||||||||
Specialized REITs — 0.6% | ||||||||
Four Corners Property Trust, Inc.(a) | 6,114,799 | 135,687,390 | ||||||
Outfront Media, Inc.(a) | 9,806,085 | 99,041,458 | ||||||
Safehold, Inc.(b)(c) | 3,023,348 | 53,815,594 | ||||||
Uniti Group, Inc.(a) | 16,152,014 | 76,237,506 | ||||||
|
| |||||||
364,781,948 | ||||||||
Specialty Retail — 4.7% | ||||||||
Abercrombie & Fitch Co., Class A(a)(b)(c) | 3,380,275 | 190,546,102 | ||||||
Academy Sports & Outdoors, Inc.(a)(c) | 5,162,073 | 244,011,191 | ||||||
Advance Auto Parts, Inc.(a) | 4,013,525 | 224,476,453 | ||||||
American Eagle Outfitters, Inc.(a) | 12,531,564 | 208,149,278 | ||||||
America’s Car-Mart, Inc.(a)(b)(c) | 405,220 | 36,870,968 | ||||||
Asbury Automotive Group, Inc.(a)(b)(c) | 1,389,181 | 319,608,873 | ||||||
Boot Barn Holdings, Inc.(a)(b)(c) | 2,024,990 | 164,408,938 | ||||||
Buckle, Inc. (The) | 2,009,915 | 67,111,062 | ||||||
Caleres, Inc.(a)(c) | 2,302,040 | 66,206,670 | ||||||
Chico’s FAS, Inc.(a)(b)(c) | 8,341,670 | 62,395,692 | ||||||
Designer Brands, Inc., Class A(a)(c) | 3,324,771 | 42,091,601 | ||||||
Foot Locker, Inc.(a) | 5,517,105 | 95,721,772 | ||||||
Group 1 Automotive, Inc.(a)(c) | 948,694 | 254,923,565 | ||||||
Guess?, Inc.(c) | 1,844,726 | 39,919,871 | ||||||
Haverty Furniture Cos., Inc.(a) | 907,610 | 26,121,016 | ||||||
Hibbett, Inc.(a)(c) | 860,636 | 40,888,816 | ||||||
Leslie’s, Inc.(a)(b)(c) | 12,430,864 | 70,358,690 | ||||||
MarineMax, Inc.(a)(b)(c) | 1,346,156 | 44,180,840 | ||||||
Monro, Inc.(a)(c) | 2,121,243 | 58,906,918 | ||||||
National Vision Holdings, Inc.(a)(b)(c) | 5,277,012 | 85,382,054 | ||||||
ODP Corp. (The)(a)(b)(c) | 2,286,386 | 105,516,714 | ||||||
Sally Beauty Holdings, Inc.(a)(b)(c) | 7,281,743 | 61,021,006 | ||||||
Shoe Carnival, Inc.(c) | 1,218,912 | 29,290,455 | ||||||
Signet Jewelers Ltd.(a)(c) | 3,067,096 | 220,248,164 | ||||||
Sleep Number Corp.(a)(b)(c) | 1,425,895 | 35,062,758 | ||||||
Sonic Automotive, Inc., Class A | 1,074,924 | 51,338,370 | ||||||
Upbound Group, Inc.(a) | 3,099,234 | 91,272,441 | ||||||
Urban Outfitters, Inc.(b)(c) | 3,817,831 | 124,804,895 | ||||||
Victoria’s Secret & Co.(a)(b)(c) | 5,208,892 | 86,884,319 | ||||||
|
| |||||||
3,147,719,492 | ||||||||
Technology Hardware, Storage & Peripherals — 0.3% | ||||||||
Avid Technology, Inc.(a)(b)(c) | 2,289,447 | 61,517,441 | ||||||
Corsair Gaming, Inc.(b)(c) | 2,914,584 | 42,348,906 | ||||||
Xerox Holdings Corp. | 7,638,018 | 119,840,502 | ||||||
|
| |||||||
223,706,849 | ||||||||
Textiles, Apparel & Luxury Goods — 0.9% | ||||||||
G-III Apparel Group Ltd.(a)(b)(c) | 2,739,752 | 68,274,620 | ||||||
Hanesbrands, Inc.(a)(c) | 23,623,410 | 93,548,704 | ||||||
Kontoor Brands, Inc.(a) | 3,372,529 | 148,087,748 | ||||||
Movado Group, Inc.(a) | 1,055,268 | 28,861,580 | ||||||
Oxford Industries, Inc.(a) | 999,067 | 96,040,311 | ||||||
Steven Madden Ltd.(a) | 4,779,984 | 151,860,092 | ||||||
Wolverine World Wide, Inc.(a) | 5,374,029 | 43,314,674 | ||||||
|
| |||||||
629,987,729 |
SCHEDULES OF INVESTMENTS | 23 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Tobacco — 0.3% | ||||||||
Universal Corp.(a) | 1,663,420 | $ | 78,530,058 | |||||
Vector Group Ltd.(a) | 8,955,283 | 95,284,211 | ||||||
|
| |||||||
173,814,269 | ||||||||
Trading Companies & Distributors — 1.7% | ||||||||
Applied Industrial Technologies, Inc.(a) | 2,609,837 | 403,506,899 | ||||||
Boise Cascade Co.(a) | 2,673,978 | 275,526,693 | ||||||
DXP Enterprises, Inc.(a)(b)(c) | 926,760 | 32,380,994 | ||||||
GMS, Inc.(a)(b)(c) | 2,752,967 | 176,107,299 | ||||||
NOW, Inc.(a)(b)(c) | 7,205,379 | 85,527,849 | ||||||
Veritiv Corp.(a) | 914,932 | 154,532,015 | ||||||
|
| |||||||
1,127,581,749 | ||||||||
Water Utilities — 0.9% | ||||||||
American States Water Co.(a) | 2,496,604 | 196,432,803 | ||||||
California Water Service Group(a) | 3,895,907 | 184,315,360 | ||||||
Middlesex Water Co.(a) | 1,198,295 | 79,387,044 | ||||||
SJW Group(a) | 1,951,916 | 117,329,671 | ||||||
|
| |||||||
577,464,878 | ||||||||
Wireless Telecommunication Services — 0.4% | ||||||||
Gogo, Inc.(b)(c) | 4,173,958 | 49,795,319 | ||||||
Shenandoah Telecommunications Co.(a)(c) | 3,395,925 | 69,990,014 | ||||||
Telephone & Data Systems, Inc.(a) | 6,610,359 | 121,035,673 | ||||||
|
| |||||||
240,821,006 | ||||||||
|
| |||||||
Total Long-Term Investments — 97.8% |
| 64,975,060,340 | ||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Short-Term Securities | ||||||||
Money Market Funds — 8.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(a)(e)(f) | 3,774,194,495 | $ | 3,775,704,173 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(a)(e) | 1,747,150,270 | 1,747,150,270 | ||||||
|
| |||||||
Total Short-Term Securities — 8.3% |
| 5,522,854,443 | ||||||
|
| |||||||
Total Investments — 106.1% |
| 70,497,914,783 | ||||||
Liabilities in Excess of Other Assets — (6.1)% |
| (4,021,880,738 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 66,476,034,045 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Non-income producing security. |
(c) | All or a portion of this security is on loan. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Annualized 7-day yield as of period end. |
(f) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions Funds |
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
| 3D Systems Corp. | $ | 102,182,418 | $ | 7,448,317 | $ | (10,980,399 | ) | $ | (12,567,878 | ) | $ | (41,800,774 | ) | $ | 44,281,684 | 9,018,673 | $ | — | $ | — | |||||||||||||||||||
8x8, Inc.(a) | 34,349,003 | 2,690,047 | (24,464,675 | ) | (106,508,755 | ) | 93,934,380 | — | — | — | — | |||||||||||||||||||||||||||||
A10 Networks, Inc. | 72,406,332 | 9,156,933 | (8,737,981 | ) | 442,406 | (2,573,544 | ) | 70,694,146 | 4,703,536 | 550,544 | — | |||||||||||||||||||||||||||||
AAON, Inc. | 296,224,899 | 23,023,791 | (23,820,216 | ) | 9,698,773 | (44,553,172 | ) | 260,574,075 | 4,581,925 | 728,993 | — | |||||||||||||||||||||||||||||
AAR Corp. | 130,130,171 | 11,871,670 | (19,983,453 | ) | 4,032,654 | 7,549,339 | 133,600,381 | 2,244,253 | — | — | ||||||||||||||||||||||||||||||
Aaron’s Co., Inc.(a) | 22,311,151 | 2,358,610 | (25,150,477 | ) | (19,683,119 | ) | 20,163,835 | — | — | 553,564 | — | |||||||||||||||||||||||||||||
Abercrombie & Fitch Co., Class A | 98,817,944 | 12,260,655 | (21,267,504 | ) | 7,420,138 | 93,314,869 | 190,546,102 | 3,380,275 | — | — | ||||||||||||||||||||||||||||||
ABM Industries, Inc. | 216,184,140 | 18,108,701 | (32,371,776 | ) | 615,601 | (23,850,966 | ) | 178,685,700 | 4,466,026 | 2,075,466 | — | |||||||||||||||||||||||||||||
Academy Sports & Outdoors, Inc. | 371,182,519 | 26,571,275 | (52,107,657 | ) | 6,485,881 | (108,120,827 | ) | 244,011,191 | 5,162,073 | 997,205 | — | |||||||||||||||||||||||||||||
Acadia Realty Trust | 95,963,864 | 2,323,502 | (9,225,017 | ) | (8,492,527 | ) | 11,655,260 | 92,225,082 | 6,426,835 | 2,343,554 | — | |||||||||||||||||||||||||||||
Addus HomeCare Corp. | 125,019,590 | 10,197,449 | (16,659,779 | ) | (659,487 | ) | (24,632,357 | ) | 93,265,416 | 1,094,793 | — | — | ||||||||||||||||||||||||||||
Adeia, Inc. | 62,082,295 | — | — | — | 12,752,796 | 74,835,091 | 7,007,031 | 700,703 | — | |||||||||||||||||||||||||||||||
Adtalem Global Education, Inc. | 127,926,317 | 11,369,743 | (32,319,948 | ) | 1,792,386 | 11,423,481 | 120,191,979 | 2,804,947 | — | — | ||||||||||||||||||||||||||||||
ADTRAN Holdings, Inc. | 81,436,976 | 4,756,429 | (7,928,939 | ) | (6,493,009 | ) | (32,402,083 | ) | 39,369,374 | 4,783,642 | 922,309 | — | ||||||||||||||||||||||||||||
Advance Auto Parts, Inc. | — | 289,980,932 | (16,001,178 | ) | (1,836,479 | ) | (47,666,822 | ) | 224,476,453 | 4,013,525 | — | — | ||||||||||||||||||||||||||||
Advanced Energy Industries, Inc. | 266,681,030 | 23,783,974 | (42,173,900 | ) | 7,769,669 | 6,082,023 | 262,142,796 | 2,542,114 | 537,880 | — | ||||||||||||||||||||||||||||||
AdvanSix, Inc. | 76,656,303 | 7,190,277 | (12,491,138 | ) | 579,903 | (14,830,942 | ) | 57,104,403 | 1,837,336 | 601,616 | — | |||||||||||||||||||||||||||||
Aerojet Rocketdyne Holdings, Inc.(a) | 309,930,501 | 17,956,693 | (337,322,963 | ) | 113,289,725 | (103,853,956 | ) | — | — | — | — | |||||||||||||||||||||||||||||
AeroVironment, Inc. | 167,676,570 | 16,388,697 | (21,982,441 | ) | 5,526,521 | 29,796,299 | 197,405,646 | 1,769,978 | — | — | ||||||||||||||||||||||||||||||
Agilysys, Inc. | 119,751,301 | 10,073,077 | (15,779,586 | ) | 4,422,329 | (27,863,184 | ) | 90,603,937 | 1,369,467 | — | — |
24 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
| ||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions Funds |
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Alamo Group, Inc. | $ | 138,123,499 | $ | 12,004,206 | $ | (21,187,191 | ) | $ | 4,288,338 | $ | (12,672,831 | ) | $ | 120,556,021 | 697,420 | $ | 323,165 | $ | — | |||||||||||||||||||||
Alarm.com Holdings, Inc. | 182,914,919 | 17,115,262 | (31,900,840 | ) | (7,555,572 | ) | 45,440,029 | 206,013,798 | 3,369,542 | — | — | |||||||||||||||||||||||||||||
Albany International Corp., Class A | 202,299,869 | 17,853,661 | (31,653,153 | ) | 4,447,976 | (11,317,305 | ) | 181,631,048 | 2,105,135 | 1,112,506 | — | |||||||||||||||||||||||||||||
Alexander & Baldwin, Inc. | 99,630,606 | 8,713,820 | (15,135,788 | ) | (2,287,797 | ) | (8,886,290 | ) | 82,034,551 | 4,903,440 | 2,292,857 | — | ||||||||||||||||||||||||||||
Allegiant Travel Co. | 104,538,121 | 10,887,845 | (21,333,346 | ) | (14,275,813 | ) | (1,319,612 | ) | 78,497,195 | 1,021,301 | 666,274 | — | ||||||||||||||||||||||||||||
Alpha & Omega Semiconductor Ltd. | 43,950,060 | 4,843,172 | (8,179,447 | ) | (1,731,877 | ) | 6,286,542 | 45,168,450 | 1,513,688 | — | — | |||||||||||||||||||||||||||||
AMC Networks, Inc., Class A | 35,658,903 | 3,191,240 | (2,844,263 | ) | (2,443,761 | ) | (9,350,261 | ) | 24,211,858 | 2,055,336 | — | — | ||||||||||||||||||||||||||||
American Assets Trust, Inc. | 70,755,064 | 6,080,303 | (14,386,973 | ) | (17,819,484 | ) | 19,166,662 | 63,795,572 | 3,279,978 | 2,459,692 | — | |||||||||||||||||||||||||||||
American Axle & Manufacturing Holdings, Inc. | 65,189,406 | 6,224,170 | (9,387,691 | ) | (4,870,460 | ) | 263,269 | 57,418,694 | 7,908,911 | — | — | |||||||||||||||||||||||||||||
American Eagle Outfitters, Inc. | 170,730,968 | 18,050,517 | (21,690,939 | ) | 2,270,990 | 38,787,742 | 208,149,278 | 12,531,564 | 2,546,768 | — | ||||||||||||||||||||||||||||||
American Equity Investment Life Holding Co. | 184,632,248 | 16,257,963 | (55,560,046 | ) | 10,957,994 | 67,730,665 | 224,018,824 | 4,176,339 | — | — | ||||||||||||||||||||||||||||||
American States Water Co. | 239,487,349 | 19,208,676 | (36,131,011 | ) | 4,685,933 | (30,818,144 | ) | 196,432,803 | 2,496,604 | 2,187,927 | — | |||||||||||||||||||||||||||||
American Vanguard Corp. | 44,332,031 | 3,392,515 | (6,066,450 | ) | (1,248,520 | ) | (20,287,708 | ) | 20,121,868 | 1,840,976 | 113,526 | — | ||||||||||||||||||||||||||||
American Woodmark Corp. | 63,064,789 | 7,716,829 | (15,274,030 | ) | (1,288,445 | ) | 29,385,254 | 83,604,397 | 1,105,732 | — | — | |||||||||||||||||||||||||||||
America’s Car-Mart, Inc. | 33,227,486 | 3,749,455 | (4,985,703 | ) | (460,158 | ) | 5,339,888 | 36,870,968 | 405,220 | — | — | |||||||||||||||||||||||||||||
Ameris Bancorp | 173,814,150 | 3,872,977 | (17,196,776 | ) | (3,258,635 | ) | 11,224,295 | 168,456,011 | 4,388,018 | 1,335,996 | — | |||||||||||||||||||||||||||||
AMERISAFE, Inc. | 68,324,067 | 7,028,914 | (12,252,496 | ) | (1,112,545 | ) | 2,851,508 | 64,839,448 | 1,294,976 | 930,257 | — | |||||||||||||||||||||||||||||
AMN Healthcare Services, Inc. | 261,702,877 | 24,608,373 | (83,013,021 | ) | 7,122,444 | 8,054,613 | 218,475,286 | 2,564,866 | — | — | ||||||||||||||||||||||||||||||
Amphastar Pharmaceuticals, Inc. | 102,744,038 | 11,298,575 | (18,898,732 | ) | 4,443,461 | 18,804,623 | 118,391,965 | 2,574,298 | — | — | ||||||||||||||||||||||||||||||
Andersons, Inc. (The) | 93,462,493 | 9,472,848 | (15,968,006 | ) | 3,058,144 | 19,491,220 | 109,516,699 | 2,126,125 | 802,275 | — | ||||||||||||||||||||||||||||||
AngioDynamics, Inc.(a) | 29,484,283 | 2,522,880 | (23,591,858 | ) | (31,724,349 | ) | 23,309,044 | — | — | — | — | |||||||||||||||||||||||||||||
ANI Pharmaceuticals, Inc. | 35,360,373 | 14,741,820 | (3,644,033 | ) | 1,249,539 | 15,146,722 | 62,854,421 | 1,082,577 | — | — | ||||||||||||||||||||||||||||||
Anika Therapeutics, Inc.(a) | 30,577,724 | 2,113,876 | (20,932,065 | ) | (23,274,993 | ) | 11,515,458 | — | — | — | — | |||||||||||||||||||||||||||||
Anywhere Real Estate, Inc. | 43,897,144 | 4,836,409 | (9,441,578 | ) | (8,567,404 | ) | 17,895,874 | 48,620,445 | 7,561,500 | — | — | |||||||||||||||||||||||||||||
Apogee Enterprises, Inc. | 69,807,317 | 7,116,039 | (12,855,377 | ) | 799,104 | 5,312,437 | 70,179,520 | 1,490,644 | 762,349 | — | ||||||||||||||||||||||||||||||
Apollo Commercial Real Estate Finance, Inc. | 88,167,627 | 8,592,308 | (8,570,219 | ) | (13,012,740 | ) | 13,767,169 | 88,944,145 | 8,780,271 | 6,272,364 | — | |||||||||||||||||||||||||||||
Apollo Medical Holdings, Inc. | N/A | 9,202,207 | (9,561,010 | ) | (6,712,181 | ) | (115,716,812 | ) | 87,689,984 | 2,842,463 | — | — | ||||||||||||||||||||||||||||
Apple Hospitality REIT, Inc. | — | 235,829,697 | (3,097,499 | ) | (117,475 | ) | (12,230,542 | ) | 220,384,181 | 14,366,635 | 1,141,258 | — | ||||||||||||||||||||||||||||
Applied Industrial Technologies, Inc. | 399,375,919 | 33,833,956 | (63,380,434 | ) | 15,135,472 | 18,541,986 | 403,506,899 | 2,609,837 | 1,934,813 | — | ||||||||||||||||||||||||||||||
ArcBest Corp. | 162,821,305 | 14,845,611 | (27,730,041 | ) | 6,402,643 | 8,548,167 | 164,887,685 | 1,622,112 | 413,971 | — | ||||||||||||||||||||||||||||||
Archrock, Inc. | 95,015,517 | 9,435,612 | (8,269,291 | ) | (3,765,663 | ) | 24,744,963 | 117,161,138 | 9,298,503 | 2,928,150 | — | |||||||||||||||||||||||||||||
Arconic Corp.(a) | 194,186,802 | 11,920,916 | (233,498,141 | ) | 99,041,991 | (71,651,568 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Arcosa, Inc. | 222,096,270 | 21,069,670 | (37,554,872 | ) | 8,992,611 | 22,112,835 | 236,716,514 | 3,292,302 | 345,152 | — | ||||||||||||||||||||||||||||||
Arcus Biosciences, Inc.(b) | 69,313,550 | 6,867,679 | (10,516,052 | ) | (3,972,397 | ) | 56,650,434 | N/A | N/A | — | — | |||||||||||||||||||||||||||||
Arlo Technologies, Inc. | 39,065,554 | 6,285,128 | (7,086,828 | ) | 1,698,909 | 25,445,512 | 65,408,275 | 6,350,318 | — | — | ||||||||||||||||||||||||||||||
Armada Hoffler Properties, Inc. | 58,248,207 | 5,355,288 | (7,182,349 | ) | (3,532,252 | ) | (5,877,330 | ) | 47,011,564 | 4,590,973 | 1,821,189 | — |
SCHEDULES OF INVESTMENTS | 25 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
| ||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions Funds |
| ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
ARMOUR Residential REIT, Inc. | $ | 62,319,873 | $ | 34,051,324 | $ | (5,679,825 | ) | $ | (10,084,138 | ) | $ | (15,046,228 | ) | $ | 65,561,006 | 15,426,119 | $ | 6,139,078 | $ | — | ||||||||||||||||||||
Artivion, Inc. | 38,495,097 | 4,438,939 | (8,945,753 | ) | (4,426,334 | ) | 10,365,746 | 39,927,695 | 2,633,753 | — | — | |||||||||||||||||||||||||||||
Asbury Automotive Group, Inc. | 338,291,310 | 28,805,089 | (77,883,192 | ) | 18,692,383 | 11,703,283 | 319,608,873 | 1,389,181 | — | — | ||||||||||||||||||||||||||||||
Assured Guaranty Ltd. | 219,398,891 | 21,038,764 | (56,462,909 | ) | 8,595,354 | 34,798,577 | 227,368,677 | 3,756,918 | 2,391,712 | — | ||||||||||||||||||||||||||||||
Astec Industries, Inc. | 68,264,543 | 6,982,293 | (12,569,702 | ) | (1,595,288 | ) | 11,238,552 | 72,320,398 | 1,535,139 | 423,508 | — | |||||||||||||||||||||||||||||
ATI, Inc. | 371,755,383 | 31,064,442 | (61,607,060 | ) | 18,557,840 | (2,515,152 | ) | 357,255,453 | 8,681,785 | — | — | |||||||||||||||||||||||||||||
Atlantic Union Bankshares Corp. | 160,737,723 | 6,248,635 | — | — | (27,818,826 | ) | 139,167,532 | 4,835,564 | 2,878,255 | — | ||||||||||||||||||||||||||||||
Avanos Medical, Inc. | 100,495,981 | 8,072,377 | (12,818,711 | ) | (5,605,232 | ) | (26,153,736 | ) | 63,990,679 | 3,164,722 | — | — | ||||||||||||||||||||||||||||
Avantax, Inc. | 76,349,477 | 6,445,023 | (16,488,170 | ) | 1,584,833 | (4,355,968 | ) | 63,535,195 | 2,483,784 | — | — | |||||||||||||||||||||||||||||
Avid Bioservices, Inc. | 84,935,412 | 6,521,609 | (10,320,440 | ) | (7,392,872 | ) | (33,744,824 | ) | 39,998,885 | 4,237,170 | — | — | ||||||||||||||||||||||||||||
Avid Technology, Inc. | 77,158,914 | 6,878,329 | (10,102,266 | ) | (291,337 | ) | (12,126,199 | ) | 61,517,441 | 2,289,447 | — | — | ||||||||||||||||||||||||||||
Avista Corp. | 225,297,559 | 1,563,455 | (6,624,595 | ) | (2,011,852 | ) | (50,962,594 | ) | 167,261,973 | 5,167,191 | 4,872,086 | — | ||||||||||||||||||||||||||||
Axcelis Technologies, Inc. | 317,914,779 | 32,047,064 | (59,727,611 | ) | 22,466,388 | 48,574,809 | 361,275,429 | 2,215,734 | — | — | ||||||||||||||||||||||||||||||
Axos Financial, Inc. | 143,594,987 | 7,844,736 | (22,133,292 | ) | 302,941 | 4,487,643 | 134,097,015 | 3,541,918 | — | — | ||||||||||||||||||||||||||||||
AZZ, Inc. | 74,597,593 | 7,611,238 | (12,847,492 | ) | (1,515,016 | ) | 9,129,591 | 76,975,914 | 1,688,809 | 605,509 | — | |||||||||||||||||||||||||||||
B&G Foods, Inc. | 80,873,267 | 6,543,289 | (177,692 | ) | (18,017,359 | ) | (20,913,177 | ) | 48,308,328 | 4,884,563 | 1,895,622 | — | ||||||||||||||||||||||||||||
Badger Meter, Inc. | 259,557,610 | 27,643,467 | (50,794,331 | ) | 15,159,472 | 33,223,008 | 284,789,226 | 1,979,490 | 1,037,713 | — | ||||||||||||||||||||||||||||||
Balchem Corp. | 295,818,759 | 26,040,028 | (48,039,388 | ) | 5,165,121 | (8,977,225 | ) | 270,007,295 | 2,176,776 | — | — | |||||||||||||||||||||||||||||
Banc of California, Inc. | 50,130,563 | 499,131 | (6,297,596 | ) | (3,443,373 | ) | 2,909,685 | 43,798,410 | 3,537,836 | 773,660 | — | |||||||||||||||||||||||||||||
Bancorp, Inc. (The) | 110,908,893 | 1,633,883 | (12,860,758 | ) | 2,759,444 | 24,000,589 | 126,442,051 | 3,664,987 | — | — | ||||||||||||||||||||||||||||||
Bank of Hawaii Corp. | — | 117,392,080 | (11,888,747 | ) | 1,645,871 | 25,940,393 | 133,089,597 | 2,678,398 | 1,939,431 | — | ||||||||||||||||||||||||||||||
BankUnited, Inc. | 118,713,424 | — | (6,338,465 | ) | 124,226 | 813,699 | 113,312,884 | 4,991,757 | 2,820,675 | — | ||||||||||||||||||||||||||||||
Banner Corp. | 131,055,405 | 1,544,299 | (5,510,262 | ) | (2,634,077 | ) | (26,173,009 | ) | 98,282,356 | 2,319,074 | 2,314,823 | — | ||||||||||||||||||||||||||||
Barnes Group, Inc. | 148,456,693 | 12,754,344 | (22,929,487 | ) | (5,546,268 | ) | (16,618,654 | ) | 116,116,628 | 3,418,211 | 1,162,585 | — | ||||||||||||||||||||||||||||
Benchmark Electronics, Inc. | 60,719,294 | 6,122,443 | (9,805,107 | ) | (596,734 | ) | 1,987,767 | 58,427,663 | 2,408,395 | 809,821 | — | |||||||||||||||||||||||||||||
Berkshire Hills Bancorp, Inc. | 77,475,120 | — | (2,766,451 | ) | (982,884 | ) | (14,503,639 | ) | 59,222,146 | 2,953,723 | 1,112,971 | — | ||||||||||||||||||||||||||||
Big Lots, Inc.(a) | 22,968,269 | 841,911 | (16,724,495 | ) | (54,047,106 | ) | 46,961,421 | — | — | — | — | |||||||||||||||||||||||||||||
BioLife Solutions, Inc. | 54,067,629 | 4,773,213 | (7,095,170 | ) | (10,249,522 | ) | (9,451,550 | ) | 32,044,600 | 2,320,391 | — | — | ||||||||||||||||||||||||||||
BJ’s Restaurants, Inc. | 49,529,579 | 5,262,680 | (8,181,102 | ) | (2,322,049 | ) | (6,916,788 | ) | 37,372,320 | 1,593,023 | — | — | ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 4,009,427,142 | — | (234,148,791 | )(c) | 19,679 | 406,143 | 3,775,704,173 | 3,774,194,495 | 7,997,577 | (d) | — | |||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,360,595,186 | 386,555,084 | (c) | — | — | — | 1,747,150,270 | 1,747,150,270 | 32,061,323 | — | ||||||||||||||||||||||||||||||
Blackstone Mortgage Trust, Inc., Class A | — | 276,200,562 | (3,538,782 | ) | (147,460 | ) | (19,472,080 | ) | 253,042,240 | 11,634,126 | 7,163,883 | — | ||||||||||||||||||||||||||||
Bloomin’ Brands, Inc. | 164,133,452 | 14,351,610 | (27,940,381 | ) | 2,657,217 | (8,598,411 | ) | 144,603,487 | 5,880,581 | 3,012,197 | — | |||||||||||||||||||||||||||||
Boise Cascade Co. | 181,861,713 | 19,590,983 | (37,276,171 | ) | 10,006,478 | 101,343,690 | 275,526,693 | 2,673,978 | 9,549,615 | — | ||||||||||||||||||||||||||||||
Boot Barn Holdings, Inc. | 166,546,614 | 16,184,289 | (28,014,386 | ) | 4,036,754 | 5,655,667 | 164,408,938 | 2,024,990 | — | — | ||||||||||||||||||||||||||||||
Brandywine Realty Trust | 59,150,320 | 2,779,355 | (5,767,802 | ) | (11,732,988 | ) | 8,376,186 | 52,805,071 | 11,631,073 | 4,659,485 | — | |||||||||||||||||||||||||||||
Brightsphere Investment Group, Inc. | 55,527,481 | 4,938,218 | (8,462,383 | ) | 1,537,965 | (11,138,085 | ) | 42,403,196 | 2,186,859 | 46,389 | — | |||||||||||||||||||||||||||||
Brinker International, Inc. | 122,025,676 | 10,664,581 | (17,858,066 | ) | (644,204 | ) | (19,707,952 | ) | 94,480,035 | 2,990,821 | — | — | ||||||||||||||||||||||||||||
Bristow Group, Inc. | 38,410,826 | 4,459,542 | (6,953,219 | ) | (571,172 | ) | 10,235,224 | 45,581,201 | 1,618,076 | — | — | |||||||||||||||||||||||||||||
Brookline Bancorp, Inc. | 61,759,068 | 3,575,678 | (2,320,958 | ) | (2,441,915 | ) | (6,031,041 | ) | 54,540,832 | 5,986,919 | 1,653,399 | — | ||||||||||||||||||||||||||||
Calavo Growers, Inc. | 36,920,281 | 4,019,749 | (6,351,038 | ) | (7,026,092 | ) | 2,753,695 | 30,316,595 | 1,201,609 | 244,825 | — | |||||||||||||||||||||||||||||
Caleres, Inc. | 56,132,878 | 6,266,961 | (14,062,819 | ) | (300,459 | ) | 18,170,109 | 66,206,670 | 2,302,040 | 358,546 | — | |||||||||||||||||||||||||||||
California Resources Corp. | — | 231,723,232 | (45,250,793 | ) | 8,135,060 | 50,536,677 | 245,144,176 | 4,376,793 | 1,408,854 | — | ||||||||||||||||||||||||||||||
California Water Service Group | 232,582,390 | 18,403,325 | (23,688,917 | ) | 1,627,463 | (44,608,901 | ) | 184,315,360 | 3,895,907 | 2,062,769 | — | |||||||||||||||||||||||||||||
Callon Petroleum Co. | 124,618,741 | 17,745,392 | (15,297,921 | ) | (2,889,459 | ) | 23,441,511 | 147,618,264 | 3,773,473 | — | — |
26 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||||
Cal-Maine Foods, Inc. | $ | 168,023,093 | $ | 15,392,545 | $ | (16,259,505 | ) | $ | 524,991 | $ | (34,790,594 | ) | $ | 132,890,530 | 2,744,538 | $ | 8,117,438 | $ | — | |||||||||||||||||||||||
Capitol Federal Financial, Inc. | 62,108,969 | 1,259,379 | (5,210,872 | ) | (4,256,141 | ) | (13,159,997 | ) | 40,741,338 | 8,541,161 | 1,542,108 | — | ||||||||||||||||||||||||||||||
Cara Therapeutics, Inc.(a) | 16,036,723 | 440,018 | (10,905,795 | ) | (63,470,393 | ) | 57,899,447 | — | — | — | — | |||||||||||||||||||||||||||||||
Cardiovascular Systems, | 60,718,195 | 924,106 | (62,068,808 | ) | (46,213,982 | ) | 46,640,489 | — | — | — | — | |||||||||||||||||||||||||||||||
CareTrust REIT, Inc. | 142,006,280 | 13,474,068 | (22,723,262 | ) | (449,982 | ) | 5,378,563 | 137,685,667 | 6,716,374 | 3,816,807 | — | |||||||||||||||||||||||||||||||
Cargurus, Inc., Class A | — | 144,154,526 | (13,268,214 | ) | (2,483,867 | ) | (25,756,935 | ) | 102,645,510 | 5,858,762 | — | — | ||||||||||||||||||||||||||||||
Carpenter Technology Corp. | 157,860,239 | 16,045,299 | (31,022,921 | ) | 9,159,615 | 68,357,169 | 220,399,401 | 3,279,265 | 1,397,239 | — | ||||||||||||||||||||||||||||||||
Cars.com, Inc. | 86,875,148 | 8,104,017 | (13,817,653 | ) | 1,446,379 | (12,241,180 | ) | 70,366,711 | 4,173,589 | — | — | |||||||||||||||||||||||||||||||
Catalyst Pharmaceuticals, Inc. | 115,688,475 | 8,927,429 | (11,735,600 | ) | (1,215,198 | ) | (32,589,212 | ) | 79,075,894 | 6,764,405 | — | — | ||||||||||||||||||||||||||||||
Cavco Industries, Inc. | 187,257,209 | 14,182,116 | (26,353,135 | ) | 5,092,686 | (35,436,416 | ) | 144,742,460 | 544,841 | — | — | |||||||||||||||||||||||||||||||
Centerspace | 59,983,030 | 6,287,819 | (9,700,954 | ) | (5,807,031 | ) | 10,077,560 | 60,840,424 | 1,009,632 | 1,504,815 | — | |||||||||||||||||||||||||||||||
Central Garden & Pet Co. | 28,991,932 | 2,709,073 | (5,494,032 | ) | 294,143 | 1,917,717 | 28,418,833 | 643,834 | — | — | ||||||||||||||||||||||||||||||||
Central Pacific Financial Corp. | 28,595,554 | — | — | — | (1,948,970 | ) | 26,646,584 | 1,597,517 | 830,709 | — | ||||||||||||||||||||||||||||||||
Century Communities, Inc. | 131,731,066 | 12,991,129 | (22,225,398 | ) | 4,996,464 | 998,271 | 128,491,532 | 1,924,102 | 935,782 | — | ||||||||||||||||||||||||||||||||
Cerence, Inc. | 82,103,671 | 7,681,675 | (13,026,098 | ) | (1,026,769 | ) | (20,261,893 | ) | 55,470,586 | 2,723,151 | — | — | ||||||||||||||||||||||||||||||
CEVA, Inc. | 51,414,406 | 4,049,404 | (6,149,108 | ) | (3,089,916 | ) | (15,256,726 | ) | 30,968,060 | 1,597,115 | — | — | ||||||||||||||||||||||||||||||
Chatham Lodging Trust | 37,098,924 | 3,104,349 | (4,164,151 | ) | (4,785,137 | ) | 338,087 | 31,592,072 | 3,301,157 | 472,299 | — | |||||||||||||||||||||||||||||||
Cheesecake Factory, Inc. (The) | 122,152,475 | 10,782,834 | (20,024,829 | ) | (3,154,714 | ) | (13,248,297 | ) | 96,507,469 | 3,185,065 | 1,858,344 | — | ||||||||||||||||||||||||||||||
Chefs’ Warehouse, Inc. (The) | 84,273,137 | 7,950,689 | (10,475,650 | ) | (413,660 | ) | (30,851,499 | ) | 50,483,017 | 2,383,523 | — | — | ||||||||||||||||||||||||||||||
Chesapeake Utilities Corp. | 148,469,039 | 25,047,032 | (19,168,624 | ) | 34,207 | (36,924,374 | ) | 117,457,280 | 1,201,609 | 1,496,744 | — | |||||||||||||||||||||||||||||||
Chico’s FAS, Inc. | 49,993,317 | 4,275,887 | (7,836,050 | ) | (3,156,631 | ) | 19,119,169 | 62,395,692 | 8,341,670 | — | — | |||||||||||||||||||||||||||||||
Children’s Place, Inc.(a) | 35,862,187 | 1,048,417 | (19,068,334 | ) | (41,674,052 | ) | 23,831,782 | — | — | — | — | |||||||||||||||||||||||||||||||
Chuy’s Holdings, Inc. | 47,009,424 | 4,864,169 | (8,276,134 | ) | 1,192,949 | (1,444,397 | ) | 43,346,011 | 1,218,269 | — | — | |||||||||||||||||||||||||||||||
Cinemark Holdings, Inc. | 115,204,324 | 12,079,109 | (20,136,919 | ) | 1,417,463 | 25,557,256 | 134,121,233 | 7,309,059 | — | — | ||||||||||||||||||||||||||||||||
CIRCOR International, Inc. | 46,173,646 | 6,839,363 | (12,244,915 | ) | 2,150,540 | 33,830,941 | 76,749,575 | 1,376,674 | — | — | ||||||||||||||||||||||||||||||||
City Holding Co. | 92,915,621 | 4,403,902 | (5,250,508 | ) | (45,890 | ) | (470,024 | ) | 91,553,101 | 1,013,316 | 1,373,277 | — | ||||||||||||||||||||||||||||||
Clearfield, Inc. | 42,875,446 | 3,441,195 | (5,132,121 | ) | (4,930,267 | ) | (11,102,581 | ) | 25,151,672 | 877,588 | — | — | ||||||||||||||||||||||||||||||
Clearwater Paper Corp. | 40,817,651 | 4,213,826 | (7,419,113 | ) | (1,168,828 | ) | 4,477,240 | 40,920,776 | 1,128,849 | — | — | |||||||||||||||||||||||||||||||
Cogent Communications Holdings, Inc. | 198,455,621 | 16,537,959 | (17,317,270 | ) | (5,965,857 | ) | (9,880,751 | ) | 181,829,702 | 2,937,475 | 5,769,725 | — | ||||||||||||||||||||||||||||||
Coherus Biosciences, Inc.(a) | 32,171,147 | 6,249,728 | (29,431,002 | ) | (56,521,692 | ) | 47,531,819 | — | — | — | — | |||||||||||||||||||||||||||||||
Cohu, Inc. | 133,262,362 | 11,735,290 | (21,123,007 | ) | 2,992,702 | (16,185,280 | ) | 110,682,067 | 3,213,765 | — | — | |||||||||||||||||||||||||||||||
Collegium Pharmaceutical, Inc. | 58,685,154 | 5,534,232 | (7,848,627 | ) | 264,588 | (4,221,826 | ) | 52,413,521 | 2,345,124 | — | — | |||||||||||||||||||||||||||||||
Comfort Systems U.S.A., Inc. | 379,972,122 | 33,397,018 | (66,408,396 | ) | 23,219,351 | 41,380,163 | 411,560,258 | 2,415,118 | 1,088,137 | — | ||||||||||||||||||||||||||||||||
Community Bank System, Inc. | 194,295,409 | — | (4,832,633 | ) | (3,850,052 | ) | (34,086,380 | ) | 151,526,344 | 3,589,821 | 3,294,397 | — | ||||||||||||||||||||||||||||||
Community Health Systems, Inc. | 44,616,254 | 3,703,342 | (5,385,225 | ) | (6,227,853 | ) | (11,778,254 | ) | 24,928,264 | 8,595,953 | — | — | ||||||||||||||||||||||||||||||
Community Healthcare Trust, Inc. | 62,746,198 | 6,140,752 | (6,720,989 | ) | (1,572,245 | ) | (11,051,324 | ) | 49,542,392 | 1,668,094 | 1,550,988 | — | ||||||||||||||||||||||||||||||
Compass Minerals International, Inc. | 85,232,184 | 8,250,417 | (14,496,473 | ) | (6,384,872 | ) | (8,941,889 | ) | 63,659,367 | 2,277,616 | 732,116 | — | ||||||||||||||||||||||||||||||
Computer Programs & Systems, | 31,093,648 | 2,177,403 | (18,457,135 | ) | (15,712,646 | ) | 898,730 | — | — | — | — |
SCHEDULES OF INVESTMENTS | 27 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Comtech Telecommunications Corp.(a) | $ | 25,084,350 | $ | 777,330 | $ | (17,701,564 | ) | $ | (30,196,746 | ) | $ | 22,036,630 | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
CONMED Corp. | 230,448,099 | 22,982,458 | (39,943,592 | ) | 5,476,833 | (9,650,026 | ) | 209,313,772 | 2,075,496 | 872,236 | — | |||||||||||||||||||||||||||||
Consensus Cloud Solutions, Inc. | 43,749,197 | 4,143,713 | (5,574,312 | ) | (3,213,467 | ) | (7,920,154 | ) | 31,184,977 | 1,238,482 | — | — | ||||||||||||||||||||||||||||
CONSOL Energy, Inc. | 138,708,588 | 14,616,224 | (53,043,119 | ) | 20,045,162 | 83,576,221 | 203,903,076 | 1,943,600 | 2,590,501 | — | ||||||||||||||||||||||||||||||
Corcept Therapeutics, Inc. | 150,882,325 | 15,108,479 | (37,747,338 | ) | 5,657,732 | 32,099,699 | 166,000,897 | 6,092,894 | — | — | ||||||||||||||||||||||||||||||
Core Laboratories, Inc. | 74,716,271 | 7,385,095 | (12,928,228 | ) | (784,803 | ) | 7,283,934 | 75,672,269 | 3,151,698 | 66,722 | — | |||||||||||||||||||||||||||||
CoreCivic, Inc. | 76,866,984 | 7,327,308 | (14,076,433 | ) | (180,149 | ) | 16,353,199 | 86,290,909 | 7,670,303 | — | — | |||||||||||||||||||||||||||||
Cracker Barrel Old Country Store, Inc. | 183,548,518 | 13,330,368 | (22,826,539 | ) | (5,221,229 | ) | (68,323,640 | ) | 100,507,478 | 1,495,647 | 4,122,918 | — | ||||||||||||||||||||||||||||
Cross Country Healthcare, Inc. | 57,621,468 | 6,180,698 | (14,219,298 | ) | 2,238,144 | 4,508,512 | 56,329,524 | 2,272,268 | — | — | ||||||||||||||||||||||||||||||
CSG Systems International, Inc. | 117,406,619 | 10,576,839 | (17,479,058 | ) | 536,827 | (6,064,262 | ) | 104,976,965 | 2,053,540 | 1,208,130 | — | |||||||||||||||||||||||||||||
CTS Corp. | 114,604,063 | 9,928,983 | (18,354,825 | ) | 2,712,126 | (20,458,105 | ) | 88,432,242 | 2,118,645 | 172,631 | — | |||||||||||||||||||||||||||||
Customers Bancorp, Inc. | 39,774,237 | 1,994,994 | (9,647,807 | ) | (3,131,548 | ) | 36,513,526 | 65,503,402 | 1,901,405 | — | — | |||||||||||||||||||||||||||||
Cutera, Inc.(a) | 30,720,361 | 900,594 | (22,352,140 | ) | (29,418,470 | ) | 20,149,655 | — | — | — | — | |||||||||||||||||||||||||||||
CVB Financial Corp. | 159,788,194 | 2,882,120 | (12,859,687 | ) | (6,325,479 | ) | 4,625,250 | 148,110,398 | 8,938,467 | 3,742,294 | — | |||||||||||||||||||||||||||||
Cytokinetics, Inc. | 242,363,841 | 20,454,718 | (34,826,651 | ) | (346,791 | ) | (36,698,153 | ) | 190,946,964 | 6,481,567 | — | — | ||||||||||||||||||||||||||||
Dana, Inc. | — | 159,159,440 | (12,414,887 | ) | (1,079,374 | ) | (18,427,927 | ) | 127,237,252 | 8,673,296 | 913,154 | — | ||||||||||||||||||||||||||||
Dave & Buster’s Entertainment, Inc. | 112,342,054 | 9,989,287 | (37,532,250 | ) | 835,328 | 362,569 | 85,996,988 | 2,319,854 | — | — | ||||||||||||||||||||||||||||||
Deluxe Corp. | 50,289,328 | 5,198,577 | (8,802,045 | ) | (3,963,036 | ) | 12,906,073 | 55,628,897 | 2,944,886 | 1,867,741 | — | |||||||||||||||||||||||||||||
Designer Brands, Inc., Class A | 32,039,144 | 3,609,498 | (7,600,266 | ) | (4,278,620 | ) | 18,321,845 | 42,091,601 | 3,324,771 | 183,267 | — | |||||||||||||||||||||||||||||
DiamondRock Hospitality Co. | 123,890,737 | 10,202,406 | (18,750,853 | ) | (5,033,202 | ) | 3,343,413 | 113,652,501 | 14,153,487 | 864,764 | — | |||||||||||||||||||||||||||||
Digi International, Inc. | 87,721,076 | 8,984,920 | (14,710,193 | ) | 2,627,662 | (19,053,371 | ) | 65,570,094 | 2,428,522 | — | — | |||||||||||||||||||||||||||||
Digital Turbine, Inc. | 81,070,266 | 6,619,394 | (9,901,082 | ) | (6,442,230 | ) | (34,360,030 | ) | 36,986,318 | 6,113,441 | — | — | ||||||||||||||||||||||||||||
Dime Community Bancshares, Inc. | 53,270,743 | 5,179,105 | (4,691,116 | ) | (1,447,594 | ) | (5,183,662 | ) | 47,127,476 | 2,361,096 | 1,156,181 | — | ||||||||||||||||||||||||||||
Dine Brands Global, Inc. | 77,056,638 | 7,499,359 | (12,405,394 | ) | (3,452,688 | ) | (16,777,739 | ) | 51,920,176 | 1,049,953 | 1,114,351 | — | ||||||||||||||||||||||||||||
Diodes, Inc. | 307,146,726 | 24,292,961 | (42,396,395 | ) | 6,734,507 | (52,251,052 | ) | 243,526,747 | 3,088,873 | — | — | |||||||||||||||||||||||||||||
DISH Network Corp., Class A | — | 121,257,358 | (12,394,477 | ) | (343,693 | ) | (10,267,363 | ) | 98,251,825 | 16,766,523 | — | — | ||||||||||||||||||||||||||||
DMC Global, Inc.(a) | 29,701,199 | 883,675 | (22,351,413 | ) | (48,650,426 | ) | 40,416,965 | — | — | — | — | |||||||||||||||||||||||||||||
Donnelley Financial Solutions, Inc. | 74,519,324 | 8,387,850 | (15,171,059 | ) | 4,121,419 | 22,930,818 | 94,788,352 | 1,684,228 | — | — | ||||||||||||||||||||||||||||||
Dorian LPG Ltd. | 46,315,296 | 6,155,483 | (6,639,054 | ) | 1,826,011 | 18,205,272 | 65,863,008 | 2,292,482 | 4,573,875 | — | ||||||||||||||||||||||||||||||
Dorman Products, Inc. | 177,785,224 | 14,117,144 | (25,960,134 | ) | (2,134,919 | ) | (18,848,358 | ) | 144,958,957 | 1,913,397 | — | — | ||||||||||||||||||||||||||||
DoubleVerify Holdings, Inc. | N/A | 88,806,678 | (24,234,013 | ) | 1,898,926 | (3,166,492 | ) | 236,932,457 | 8,477,011 | — | — | |||||||||||||||||||||||||||||
Douglas Elliman, Inc.(a) | 15,688,697 | 536,047 | (12,803,138 | ) | (19,393,423 | ) | 15,971,817 | — | — | — | — | |||||||||||||||||||||||||||||
Dril-Quip, Inc. | 70,712,501 | 6,230,630 | (10,497,647 | ) | (2,184,002 | ) | 737,779 | 64,999,261 | 2,307,393 | — | — | |||||||||||||||||||||||||||||
DXP Enterprises, Inc. | 30,708,102 | 3,241,769 | (10,885,310 | ) | 29,642 | 9,286,791 | 32,380,994 | 926,760 | — | — | ||||||||||||||||||||||||||||||
Dycom Industries, Inc. | 201,762,838 | 18,103,884 | (35,580,723 | ) | 748,997 | (8,819,001 | ) | 176,215,995 | 1,979,955 | — | — | |||||||||||||||||||||||||||||
Dynavax Technologies Corp. | 84,578,740 | 14,119,271 | (12,782,074 | ) | 1,253,678 | 41,271,206 | 128,440,821 | 8,696,061 | — | — | ||||||||||||||||||||||||||||||
Eagle Bancorp, Inc. | 74,581,737 | 349,668 | (5,392,630 | ) | (7,390,393 | ) | (18,837,550 | ) | 43,310,832 | 2,019,153 | 1,966,766 | — | ||||||||||||||||||||||||||||
Eagle Pharmaceuticals, Inc.(a) | 21,589,598 | 1,001,987 | (15,420,272 | ) | (24,836,854 | ) | 17,665,541 | — | — | — | — | |||||||||||||||||||||||||||||
Easterly Government Properties, Inc. | 86,345,087 | 5,280,111 | (138,033 | ) | (5,423,493 | ) | (14,370,974 | ) | 71,692,698 | 6,272,327 | 3,330,633 | — | ||||||||||||||||||||||||||||
Ebix, Inc. | 22,609,137 | 3,214,824 | (4,084,121 | ) | (3,618,291 | ) | (1,650,077 | ) | 16,471,472 | 1,667,153 | — | — |
28 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Edgewell Personal Care Co. | $ | 158,589,503 | $ | 13,844,677 | $ | (26,448,694 | ) | $ | 557,612 | $ | (19,744,352 | ) | $ | 126,798,746 | 3,430,702 | $ | 1,100,996 | $ | — | |||||||||||||||||||||
elf Beauty, Inc. | 303,507,266 | 46,183,594 | (44,076,018 | ) | 15,614,144 | 82,596,484 | 403,825,470 | 3,676,823 | — | — | ||||||||||||||||||||||||||||||
Ellington Financial, Inc. | 56,245,609 | 8,626,163 | (8,681,525 | ) | (985,593 | ) | 2,061,177 | 57,265,831 | 4,592,288 | 4,073,533 | — | |||||||||||||||||||||||||||||
Elme Communities | 113,838,747 | 7,877,182 | (6,692,308 | ) | (14,416,653 | ) | (19,727,742 | ) | 80,879,226 | 5,929,562 | 2,170,557 | — | ||||||||||||||||||||||||||||
Embecta Corp. | 117,239,760 | 8,432,326 | (14,456,417 | ) | (4,134,044 | ) | (48,809,665 | ) | 58,271,960 | 3,871,891 | 1,233,359 | — | ||||||||||||||||||||||||||||
Emergent BioSolutions, Inc.(a) | 33,542,448 | 2,202,347 | (17,129,626 | ) | (113,500,689 | ) | 94,885,520 | — | — | — | — | |||||||||||||||||||||||||||||
Employers Holdings, Inc. | 72,259,484 | 1,345,458 | (1,656,837 | ) | (203,188 | ) | (2,756,461 | ) | 68,988,456 | 1,726,870 | 968,836 | — | ||||||||||||||||||||||||||||
Enanta Pharmaceuticals, Inc.(a) | 57,691,502 | 3,017,649 | (21,610,614 | ) | (63,245,790 | ) | 24,147,253 | — | — | — | — | |||||||||||||||||||||||||||||
Encore Capital Group, Inc. | 85,730,089 | 8,174,554 | (13,425,728 | ) | 9,781 | (4,758,434 | ) | 75,730,262 | 1,585,642 | — | — | |||||||||||||||||||||||||||||
Encore Wire Corp. | 247,802,148 | 19,047,495 | (53,951,180 | ) | 17,028,584 | (22,901,180 | ) | 207,025,867 | 1,134,637 | 51,728 | — | |||||||||||||||||||||||||||||
Energizer Holdings, Inc. | — | 156,116,767 | (2,331,206 | ) | (84,568 | ) | (9,885,096 | ) | 143,815,897 | 4,488,636 | — | — | ||||||||||||||||||||||||||||
Enerpac Tool Group Corp., Class A | 105,874,139 | 9,828,277 | (19,562,334 | ) | 1,585,223 | 2,391,403 | 100,116,708 | 3,787,995 | — | — | ||||||||||||||||||||||||||||||
Enhabit, Inc. | 50,148,624 | 4,443,220 | (7,231,954 | ) | (3,487,533 | ) | (5,802,638 | ) | 38,069,719 | 3,383,975 | — | — | ||||||||||||||||||||||||||||
Enova International, Inc. | 100,809,360 | 10,208,634 | (19,463,727 | ) | 5,598,511 | 8,588,707 | 105,741,485 | 2,078,661 | — | — | ||||||||||||||||||||||||||||||
EnPro Industries, Inc. | 157,140,897 | 15,295,017 | (27,835,929 | ) | 5,311,742 | 21,134,627 | 171,046,354 | 1,411,390 | 865,193 | — | ||||||||||||||||||||||||||||||
Ensign Group, Inc. (The) | 387,611,799 | 34,327,715 | (58,776,742 | ) | 15,075,482 | (25,608,585 | ) | 352,629,669 | 3,794,573 | 442,241 | — | |||||||||||||||||||||||||||||
Enviri Corp.(e) | 39,551,676 | 4,457,322 | (7,695,044 | ) | (6,079,547 | ) | 8,680,079 | 38,914,486 | 5,389,818 | — | — | |||||||||||||||||||||||||||||
ePlus, Inc. | 96,011,051 | 10,084,351 | (18,182,395 | ) | 2,749,662 | 24,866,745 | 115,529,414 | 1,818,788 | — | — | ||||||||||||||||||||||||||||||
ESCO Technologies, Inc. | 179,527,801 | 15,826,243 | (30,078,859 | ) | 4,904,870 | 11,630,037 | 181,810,092 | 1,740,809 | 144,601 | — | ||||||||||||||||||||||||||||||
Essential Properties Realty Trust, Inc. | 257,903,414 | 25,421,511 | (18,378,520 | ) | (2,382,591 | ) | (34,726,805 | ) | 227,837,009 | 10,533,380 | 5,842,449 | — | ||||||||||||||||||||||||||||
Ethan Allen Interiors, Inc. | 45,645,769 | 4,873,187 | (8,338,308 | ) | 704,535 | 3,183,451 | 46,068,634 | 1,540,757 | 1,979,732 | — | ||||||||||||||||||||||||||||||
EVERTEC, Inc. | 160,007,704 | 15,127,833 | (28,846,540 | ) | 3,269,661 | 12,684,898 | 162,243,556 | 4,363,732 | 467,372 | — | ||||||||||||||||||||||||||||||
EW Scripps Co. (The), Class A, NVS | 39,742,495 | 3,418,237 | (4,787,912 | ) | (4,753,341 | ) | (11,861,643 | ) | 21,757,836 | 3,970,408 | — | — | ||||||||||||||||||||||||||||
Fabrinet | 316,931,724 | 27,508,065 | (58,211,572 | ) | 16,792,722 | 105,314,528 | 408,335,467 | 2,450,699 | — | — | ||||||||||||||||||||||||||||||
FARO Technologies, Inc.(a) | 33,444,916 | 1,280,168 | (22,381,770 | ) | (46,157,047 | ) | 33,813,733 | — | — | — | — | |||||||||||||||||||||||||||||
FB Financial Corp. | 79,384,070 | 7,290,181 | (12,374,209 | ) | (3,300,742 | ) | (3,770,360 | ) | 67,228,940 | 2,370,555 | 757,491 | — | ||||||||||||||||||||||||||||
Federal Signal Corp. | 239,607,658 | 23,360,678 | (41,353,851 | ) | 11,372,350 | 12,987,875 | 245,974,710 | 4,118,110 | 871,403 | — | ||||||||||||||||||||||||||||||
First BanCorp/Puerto Rico | 146,853,183 | — | (12,059,241 | ) | 4,436,913 | 21,628,663 | 160,859,518 | 11,950,930 | 3,555,805 | — | ||||||||||||||||||||||||||||||
First Bancorp/Southern Pines NC | 101,721,572 | 1,710,486 | (4,460,676 | ) | (2,437,772 | ) | (18,458,617 | ) | 78,074,993 | 2,774,520 | 1,236,264 | — | ||||||||||||||||||||||||||||
First Commonwealth Financial Corp. | 88,629,082 | 495,328 | (3,197,578 | ) | (1,218,133 | ) | (279,589 | ) | 84,429,110 | 6,914,751 | 1,782,564 | — | ||||||||||||||||||||||||||||
First Financial Bancorp | 142,830,379 | 952,884 | (3,741,802 | ) | (1,407,134 | ) | (12,741,234 | ) | 125,893,093 | 6,423,117 | 3,020,826 | — | ||||||||||||||||||||||||||||
First Hawaiian, Inc. | 191,255,634 | 15,579,158 | (27,249,182 | ) | (7,555,746 | ) | (16,512,508 | ) | 155,517,356 | 8,615,920 | 4,763,168 | — | ||||||||||||||||||||||||||||
Foot Locker, Inc. | — | 102,359,582 | (1,321,690 | ) | (50,524 | ) | (5,265,596 | ) | 95,721,772 | 5,517,105 | — | — | ||||||||||||||||||||||||||||
FormFactor, Inc. | 178,809,435 | 15,407,736 | (26,505,098 | ) | (405,886 | ) | 15,889,684 | 183,195,871 | 5,243,156 | — | — | |||||||||||||||||||||||||||||
Fortrea Holdings, Inc. | — | 233,685,826 | (13,021,890 | ) | (2,814,366 | ) | (46,822,417 | ) | 171,027,153 | 5,982,062 | — | — | ||||||||||||||||||||||||||||
Forward Air Corp. | 208,856,122 | 15,816,960 | (33,008,665 | ) | (2,242 | ) | (72,403,156 | ) | 119,259,019 | 1,734,929 | 907,593 | — | ||||||||||||||||||||||||||||
Four Corners Property Trust, Inc. | 163,838,640 | 14,867,175 | (11,886,368 | ) | (1,421,682 | ) | (29,710,375 | ) | 135,687,390 | 6,114,799 | 4,138,459 | — | ||||||||||||||||||||||||||||
Franklin BSP Realty Trust, Inc. | 71,662,078 | 7,414,264 | (13,778,914 | ) | (1,694,316 | ) | 9,901,343 | 73,504,455 | 5,551,696 | 4,014,848 | — | |||||||||||||||||||||||||||||
Franklin Electric Co., Inc. | 266,513,408 | 23,333,290 | (37,453,797 | ) | 8,076,552 | (20,783,575 | ) | 239,685,878 | 2,686,158 | 1,252,902 | — | |||||||||||||||||||||||||||||
Frontdoor, Inc. | 165,202,271 | 16,435,913 | (31,672,016 | ) | 3,162,731 | 12,798,450 | 165,927,349 | 5,424,235 | — | — | ||||||||||||||||||||||||||||||
Fulton Financial Corp. | — | 119,069,641 | — | — | (4,809,987 | ) | 114,259,654 | 9,435,149 | 2,329,840 | — | ||||||||||||||||||||||||||||||
Gannett Co., | 20,024,676 | 743,820 | (18,518,247 | ) | (57,896,468 | ) | 55,646,219 | — | — | — | — | |||||||||||||||||||||||||||||
Genesco, Inc.(a) | 32,192,810 | 1,125,073 | (21,442,708 | ) | (21,239,096 | ) | 9,363,921 | — | — | — | — | |||||||||||||||||||||||||||||
Gentherm, Inc. | 145,834,183 | 12,143,256 | (22,961,757 | ) | (1,779,248 | ) | (12,373,749 | ) | 120,862,685 | 2,227,473 | — | — |
SCHEDULES OF INVESTMENTS | 29 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Genworth Financial, Inc., Class A | $ | 155,800,113 | $ | 2,300,657 | $ | (8,814,544 | ) | $ | 1,389,091 | $ | 24,047,662 | $ | 174,722,979 | 29,816,208 | $ | — | $ | — | ||||||||||||||||||||||
GEO Group, Inc. (The) | 71,373,690 | 6,545,358 | (10,560,422 | ) | (146,070 | ) | 2,432,774 | 69,645,330 | 8,514,099 | — | — | |||||||||||||||||||||||||||||
Getty Realty Corp. | 106,746,477 | 15,079,980 | (8,954,296 | ) | (890,697 | ) | (25,940,293 | ) | 86,041,171 | 3,102,819 | 2,684,552 | — | ||||||||||||||||||||||||||||
Gibraltar Industries, Inc. | 109,464,112 | 11,730,344 | (24,437,319 | ) | 2,107,838 | 39,811,029 | 138,676,004 | 2,054,155 | — | — | ||||||||||||||||||||||||||||||
G-III Apparel Group Ltd. | 48,426,354 | 5,887,348 | (13,906,586 | ) | (6,573,260 | ) | 34,440,764 | 68,274,620 | 2,739,752 | — | — | |||||||||||||||||||||||||||||
Glaukos Corp. | 174,195,095 | 19,869,916 | (33,037,588 | ) | 4,573,319 | 81,575,792 | 247,176,534 | 3,284,738 | — | — | ||||||||||||||||||||||||||||||
Global Net Lease, Inc.(b) | 97,000,858 | 35,616,449 | (9,233,964 | ) | (18,695,815 | ) | 5,513,976 | N/A | N/A | 5,917,956 | — | |||||||||||||||||||||||||||||
GMS, Inc. | 175,619,967 | 17,278,228 | (34,789,281 | ) | 8,409,982 | 9,588,403 | 176,107,299 | 2,752,967 | — | — | ||||||||||||||||||||||||||||||
Golden Entertainment, Inc. | 69,585,761 | 6,388,673 | (11,514,115 | ) | (2,921,941 | ) | (11,574,738 | ) | 49,963,640 | 1,461,780 | 3,152,866 | — | ||||||||||||||||||||||||||||
Goosehead Insurance, Inc., Class A | — | 117,324,448 | (4,619,976 | ) | 165,512 | 7,456,540 | 120,326,524 | 1,614,471 | — | — | ||||||||||||||||||||||||||||||
Granite Construction, Inc. | 130,924,178 | 11,441,430 | (20,047,913 | ) | 1,864,179 | (11,438,621 | ) | 112,743,253 | 2,965,367 | 783,238 | — | |||||||||||||||||||||||||||||
Green Dot Corp., Class A | 59,054,343 | — | (7,061,187 | ) | (10,989,272 | ) | 1,063,267 | 42,067,151 | 3,019,896 | — | — | |||||||||||||||||||||||||||||
Green Plains, Inc. | 113,286,982 | — | — | — | (3,253,482 | ) | 110,033,500 | 3,655,598 | — | — | ||||||||||||||||||||||||||||||
Greenbrier Cos., Inc. (The) | 76,631,095 | 8,161,706 | (18,499,898 | ) | (2,938,901 | ) | 20,117,198 | 83,471,200 | 2,086,780 | 1,321,422 | — | |||||||||||||||||||||||||||||
Griffon Corp. | 110,428,290 | 11,483,537 | (37,567,634 | ) | 8,881,217 | 16,463,806 | 109,689,216 | 2,765,042 | 7,719,305 | — | ||||||||||||||||||||||||||||||
Group 1 Automotive, Inc. | 240,279,848 | 21,800,964 | (49,430,152 | ) | 14,821,210 | 27,451,695 | 254,923,565 | 948,694 | 925,133 | — | ||||||||||||||||||||||||||||||
Hain Celestial Group, Inc. (The) | 111,462,378 | 7,737,699 | (12,888,811 | ) | (3,891,568 | ) | (39,745,015 | ) | 62,674,683 | 6,043,846 | — | — | ||||||||||||||||||||||||||||
Hanesbrands, Inc. | 133,951,881 | 10,219,179 | (18,856,343 | ) | (1,160,449 | ) | (30,605,564 | ) | 93,548,704 | 23,623,410 | — | — | ||||||||||||||||||||||||||||
Hanmi Financial Corp. | 38,719,323 | 337,467 | (781,122 | ) | (626,295 | ) | (4,239,869 | ) | 33,409,504 | 2,058,503 | 1,044,861 | — | ||||||||||||||||||||||||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | — | 182,291,837 | (2,050,659 | ) | (128,761 | ) | (26,769,489 | ) | 153,342,928 | 7,233,157 | — | — | ||||||||||||||||||||||||||||
Harmonic, Inc. | 116,507,540 | 9,702,741 | (14,649,291 | ) | 1,729,273 | (40,524,317 | ) | 72,765,946 | 7,556,173 | — | — | |||||||||||||||||||||||||||||
Haverty Furniture Cos., Inc. | 30,548,049 | 3,018,094 | (4,454,179 | ) | 475,931 | (3,466,879 | ) | 26,121,016 | 907,610 | 568,775 | — | |||||||||||||||||||||||||||||
Hawaiian Holdings, Inc. | 34,077,847 | 3,495,190 | (5,363,150 | ) | (11,161,541 | ) | 1,048,709 | 22,097,055 | 3,490,846 | — | — | |||||||||||||||||||||||||||||
Hawkins, Inc. | 60,440,742 | 6,709,571 | (11,221,479 | ) | 3,047,018 | 17,320,701 | 76,296,553 | 1,296,458 | 423,007 | — | ||||||||||||||||||||||||||||||
Haynes International, Inc. | 46,049,240 | 4,224,460 | (7,105,251 | ) | 1,099,428 | (4,250,954 | ) | 40,016,923 | 860,209 | 399,394 | — | |||||||||||||||||||||||||||||
HB Fuller Co. | 267,610,614 | 23,914,136 | (42,022,831 | ) | 2,894,924 | (2,849,649 | ) | 249,547,194 | 3,637,184 | 1,575,741 | — | |||||||||||||||||||||||||||||
HCI Group, Inc.(b) | 26,351,154 | 2,443,906 | (6,890,884 | ) | (1,803,065 | ) | (375,685 | ) | N/A | N/A | 388,160 | — | ||||||||||||||||||||||||||||
Healthcare Services Group, Inc. | 74,665,761 | 6,887,704 | (11,378,418 | ) | (6,691,808 | ) | (11,211,615 | ) | 52,271,624 | 5,011,661 | — | — | ||||||||||||||||||||||||||||
HealthStream, Inc. | 47,692,179 | 4,344,025 | (7,111,016 | ) | (842,538 | ) | (8,758,391 | ) | 35,324,259 | 1,636,898 | 131,082 | — | ||||||||||||||||||||||||||||
Heidrick & Struggles International, Inc. | 43,935,990 | 3,863,076 | (6,235,933 | ) | (1,645,409 | ) | (6,091,510 | ) | 33,826,214 | 1,351,967 | 429,829 | — | ||||||||||||||||||||||||||||
Helix Energy Solutions Group, Inc. | 80,486,224 | 7,908,940 | (15,266,234 | ) | 2,997,711 | 30,791,080 | 106,917,721 | 9,571,864 | — | — | ||||||||||||||||||||||||||||||
Helmerich & Payne, Inc. | 271,925,833 | 24,330,099 | (60,185,620 | ) | 5,645,102 | 41,308,671 | 283,024,085 | 6,713,095 | 7,194,931 | — | ||||||||||||||||||||||||||||||
Heritage Financial Corp. | 53,901,678 | 378,274 | (3,272,186 | ) | (3,551,351 | ) | (9,131,699 | ) | 38,324,716 | 2,349,768 | 1,095,793 | — | ||||||||||||||||||||||||||||
Heska Corp.(a) | 72,186,964 | 2,798,179 | (91,540,180 | ) | 3,453,147 | 13,101,890 | — | — | — | — | ||||||||||||||||||||||||||||||
Hibbett, Inc. | 54,699,291 | 4,379,012 | (7,122,675 | ) | (207,384 | ) | (10,859,428 | ) | 40,888,816 | 860,636 | 456,423 | — | ||||||||||||||||||||||||||||
Highwoods Properties, Inc. | — | 164,295,440 | (1,039,681 | ) | (11,052 | ) | (16,125,210 | ) | 147,119,497 | 7,138,258 | — | — | ||||||||||||||||||||||||||||
Hillenbrand, Inc. | 240,061,435 | 20,213,136 | (35,594,294 | ) | 3,659,358 | (28,615,195 | ) | 199,724,440 | 4,720,502 | 2,182,367 | — | |||||||||||||||||||||||||||||
Hilltop Holdings, Inc.(b) | 98,632,693 | — | (7,082,267 | ) | (758,378 | ) | 11,663,003 | N/A | N/A | 1,047,076 | — | |||||||||||||||||||||||||||||
HNI Corp. | 83,911,068 | 17,495,728 | (15,266,211 | ) | (1,253,111 | ) | 23,950,149 | 108,837,623 | 3,142,871 | 2,127,405 | — | |||||||||||||||||||||||||||||
HomeStreet, Inc.(a) | 23,604,463 | — | (6,914,010 | ) | (30,379,701 | ) | 13,689,248 | — | — | 131,209 | — | |||||||||||||||||||||||||||||
Hope Bancorp, Inc. | 79,956,414 | 3,108,608 | (3,509,271 | ) | (2,809,252 | ) | (5,013,859 | ) | 71,732,640 | 8,105,383 | 2,302,785 | — | ||||||||||||||||||||||||||||
Horace Mann Educators Corp. | 91,473,889 | — | — | — | (11,202,000 | ) | 80,271,889 | 2,732,195 | 1,803,249 | — | ||||||||||||||||||||||||||||||
Hostess Brands, Inc., Class A | 242,479,510 | 18,852,231 | (41,860,924 | ) | 7,313,121 | 72,123,913 | 298,907,851 | 8,973,517 | — | — |
30 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Hub Group, Inc., Class A | $ | 199,789,287 | $ | 16,727,492 | $ | (37,203,468 | ) | $ | 4,668,679 | $ | (17,393,309 | ) | $ | 166,588,681 | 2,121,068 | $ | — | $ | — | |||||||||||||||||||||
Hudson Pacific Properties, Inc. | 62,200,117 | 3,794,416 | (8,723,375 | ) | (7,144,682 | ) | 6,664,125 | 56,790,601 | 8,539,940 | 1,162,743 | — | |||||||||||||||||||||||||||||
Ichor Holdings Ltd. | 68,853,399 | 6,762,819 | (10,884,208 | ) | (1,532,882 | ) | (2,010,032 | ) | 61,189,096 | 1,976,392 | — | — | ||||||||||||||||||||||||||||
Independent Bank Corp. | 206,148,445 | — | (9,840,045 | ) | (4,323,297 | ) | (46,531,482 | ) | 145,453,621 | 2,962,999 | 3,322,263 | — | ||||||||||||||||||||||||||||
Independent Bank Group, Inc. | 119,660,451 | 8,771,143 | (14,735,001 | ) | (7,023,227 | ) | (10,758,960 | ) | 95,914,406 | 2,425,143 | 1,931,640 | — | ||||||||||||||||||||||||||||
Ingevity Corp. | — | 136,872,600 | (12,428,657 | ) | (850,454 | ) | (15,302,211 | ) | 108,291,278 | 2,274,549 | — | — | ||||||||||||||||||||||||||||
Innospec, Inc. | 185,047,583 | 15,580,126 | (28,376,349 | ) | 3,984,396 | (4,652,687 | ) | 171,583,069 | 1,678,895 | 1,233,233 | — | |||||||||||||||||||||||||||||
Innovative Industrial Properties, Inc. | 154,533,036 | 13,703,230 | (25,193,623 | ) | (24,040,456 | ) | 24,236,871 | 143,239,058 | 1,893,194 | 6,930,297 | — | |||||||||||||||||||||||||||||
Innoviva, Inc. | 51,337,564 | 5,202,870 | (14,020,815 | ) | (1,394,613 | ) | 9,155,114 | 50,280,120 | 3,870,679 | — | — | |||||||||||||||||||||||||||||
Inogen, Inc.(a) | 20,699,378 | 1,102,569 | (18,705,628 | ) | (54,410,781 | ) | 51,314,462 | — | — | — | — | |||||||||||||||||||||||||||||
Insight Enterprises, Inc. | 315,302,283 | 24,655,996 | (47,955,443 | ) | 16,702,893 | (11,661,368 | ) | 297,044,361 | 2,041,542 | — | — | |||||||||||||||||||||||||||||
Installed Building Products, Inc. | 194,942,723 | 18,820,804 | (33,144,908 | ) | 7,288,396 | 10,935,974 | 198,842,989 | 1,592,145 | 1,101,178 | — | ||||||||||||||||||||||||||||||
Insteel Industries, Inc. | 39,429,230 | 4,111,501 | (7,469,747 | ) | (744,435 | ) | 7,262,691 | 42,589,240 | 1,312,053 | 83,386 | — | |||||||||||||||||||||||||||||
Integer Holdings Corp. | 186,869,395 | 19,128,768 | (32,286,604 | ) | 4,541,319 | (1,873,220 | ) | 176,379,658 | 2,248,880 | — | — | |||||||||||||||||||||||||||||
InterDigital, Inc. | 142,699,271 | 13,767,900 | (28,429,508 | ) | 3,771,179 | 11,254,103 | 143,062,945 | 1,782,938 | 1,337,751 | — | ||||||||||||||||||||||||||||||
Interface, Inc., Class A | 34,179,987 | 3,874,798 | (6,448,812 | ) | (4,271,821 | ) | 11,177,112 | 38,511,264 | 3,925,715 | 83,161 | — | |||||||||||||||||||||||||||||
Invesco Mortgage Capital, Inc. | 28,489,334 | 21,866,802 | (3,067,870 | ) | (20,944,439 | ) | 3,785,152 | 30,128,979 | 3,009,888 | 2,196,056 | — | |||||||||||||||||||||||||||||
iRobot Corp. | 86,350,032 | 8,162,338 | (13,047,654 | ) | (6,963,907 | ) | (3,890,608 | ) | 70,610,201 | 1,863,066 | — | — | ||||||||||||||||||||||||||||
Ironwood Pharmaceuticals, Inc., Class A | 102,035,794 | 9,288,764 | (13,091,895 | ) | (1,368,553 | ) | (7,528,930 | ) | 89,335,180 | 9,276,758 | — | — | ||||||||||||||||||||||||||||
iTeos Therapeutics, Inc.(b) | 24,370,080 | 3,128,319 | (3,241,495 | ) | (3,038,917 | ) | 40,142,120 | N/A | N/A | — | — | |||||||||||||||||||||||||||||
Itron, Inc. | 182,591,693 | 18,092,747 | (32,708,369 | ) | (3,810,758 | ) | 21,776,273 | 185,941,586 | 3,069,356 | — | — | |||||||||||||||||||||||||||||
J & J Snack Foods Corp. | 161,645,916 | 15,724,452 | (23,541,584 | ) | 1,866,362 | 14,817,353 | 170,512,499 | 1,041,934 | 1,538,348 | — | ||||||||||||||||||||||||||||||
Jack in the Box, Inc. | 131,488,619 | 11,622,113 | (22,750,610 | ) | (940,396 | ) | (25,661,246 | ) | 93,758,480 | 1,357,638 | 1,296,068 | — | ||||||||||||||||||||||||||||
James River Group Holdings Ltd. | 54,415,765 | 3,762,090 | (1,495,549 | ) | (6,135,903 | ) | (11,493,900 | ) | 39,052,503 | 2,544,137 | 262,943 | — | ||||||||||||||||||||||||||||
JBG SMITH Properties | 108,645,430 | 8,602,998 | (21,555,697 | ) | 630,865 | (4,424,888 | ) | 91,898,708 | 6,355,374 | 3,090,214 | — | |||||||||||||||||||||||||||||
JetBlue Airways Corp. | — | 113,119,072 | (1,190,469 | ) | (68,625 | ) | (8,359,205 | ) | 103,500,773 | 22,500,168 | — | — | ||||||||||||||||||||||||||||
John B Sanfilippo & Son, Inc. | 63,262,398 | 6,824,710 | (12,199,895 | ) | 1,897,795 | (29,187 | ) | 59,755,821 | 604,816 | 2,242,015 | — | |||||||||||||||||||||||||||||
John Bean Technologies Corp. | 253,447,554 | 21,986,744 | (40,996,869 | ) | (2,021,545 | ) | (6,403,576 | ) | 226,012,308 | 2,149,632 | 457,861 | — | ||||||||||||||||||||||||||||
John Wiley & Sons, Inc., Class A | — | 106,114,118 | (10,453,097 | ) | 600,821 | 10,534,147 | 106,795,989 | 2,873,177 | 1,052,668 | — | ||||||||||||||||||||||||||||||
Kaiser Aluminum Corp. | 86,687,297 | 7,637,373 | (13,518,511 | ) | (4,015,040 | ) | 4,576,381 | 81,367,500 | 1,081,152 | 1,764,791 | — | |||||||||||||||||||||||||||||
Kaman Corp. | 46,934,940 | 4,137,856 | (7,082,730 | ) | (7,322,012 | ) | 899,071 | 37,567,125 | 1,911,813 | 792,382 | — | |||||||||||||||||||||||||||||
Kennametal, Inc. | 161,872,343 | 14,517,837 | (27,321,976 | ) | 703,667 | (15,870,423 | ) | 133,901,448 | 5,381,891 | 2,306,751 | — | |||||||||||||||||||||||||||||
Kennedy-Wilson Holdings, Inc. | 141,614,695 | 12,450,616 | (21,129,451 | ) | (77,088 | ) | (14,884,632 | ) | 117,974,140 | 8,003,673 | 3,923,761 | — | ||||||||||||||||||||||||||||
KKR Real Estate Finance Trust, Inc. | 48,168,447 | 4,719,851 | (8,523,601 | ) | (3,795,100 | ) | 5,953,966 | 46,523,563 | 3,919,424 | 3,429,308 | — | |||||||||||||||||||||||||||||
Knowles Corp. | 112,730,077 | 10,164,341 | (17,541,736 | ) | (1,335,835 | ) | (12,879,084 | ) | 91,137,763 | 6,153,799 | — | — | ||||||||||||||||||||||||||||
Kontoor Brands, Inc. | 174,110,704 | 13,754,806 | (23,680,671 | ) | (539,691 | ) | (15,557,400 | ) | 148,087,748 | 3,372,529 | 3,396,177 | — | ||||||||||||||||||||||||||||
Koppers Holdings, Inc. | 53,100,966 | 4,980,807 | (8,939,316 | ) | 471,212 | 6,124,621 | 55,738,290 | 1,409,312 | 179,558 | — | ||||||||||||||||||||||||||||||
Korn Ferry | 198,786,374 | 16,750,226 | (27,621,382 | ) | (806,158 | ) | (15,474,176 | ) | 171,634,884 | 3,617,936 | 1,309,947 | — | ||||||||||||||||||||||||||||
Kulicke & Soffa Industries, Inc. | 217,384,819 | 19,084,278 | (35,039,217 | ) | 6,892,454 | (22,899,743 | ) | 185,422,591 | 3,812,926 | 1,480,530 | — | |||||||||||||||||||||||||||||
Lakeland Financial Corp. | 115,762,353 | 534,895 | (7,250,866 | ) | (3,228,257 | ) | (24,321,522 | ) | 81,496,603 | 1,717,164 | 1,666,021 | — | ||||||||||||||||||||||||||||
La-Z-Boy, Inc. | 91,153,674 | 9,066,197 | (15,198,208 | ) | (945,681 | ) | 6,233,659 | 90,309,641 | 2,924,535 | 1,119,060 | — | |||||||||||||||||||||||||||||
LCI Industries | 203,655,472 | 19,074,131 | (35,959,396 | ) | 44,537 | 13,952,320 | 200,767,064 | 1,709,820 | 3,814,242 | — | ||||||||||||||||||||||||||||||
LeMaitre Vascular, Inc. | 72,406,555 | 8,256,801 | (12,530,881 | ) | 2,344,462 | 2,405,917 | 72,882,854 | 1,337,791 | 388,878 | — |
SCHEDULES OF INVESTMENTS | 31 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
LendingTree, Inc.(a) | $ | 20,967,477 | $ | 806,571 | $ | (17,818,177 | ) | $ | (88,900,873 | ) | $ | 84,945,002 | $ | — | — | $ | — | $ | — | |||||||||||||||||||||
Leslie’s, Inc. | 119,142,546 | 19,324,245 | (11,981,755 | ) | (3,463,744 | ) | (52,662,602 | ) | 70,358,690 | 12,430,864 | — | — | ||||||||||||||||||||||||||||
LGI Homes, Inc. | 169,937,199 | 15,984,304 | (28,138,184 | ) | 5,283,525 | (25,462,324 | ) | 137,604,520 | 1,383,099 | — | — | |||||||||||||||||||||||||||||
Liberty Energy, Inc., Class A | — | 193,121,584 | (2,610,459 | ) | (37,395 | ) | 3,414,687 | 193,888,417 | 10,469,137 | — | — | |||||||||||||||||||||||||||||
Ligand Pharmaceuticals, Inc. | 86,025,257 | 7,606,367 | (12,025,238 | ) | (2,728,165 | ) | (12,879,157 | ) | 65,999,064 | 1,101,453 | — | — | ||||||||||||||||||||||||||||
Lindsay Corp. | 120,919,113 | 9,407,604 | (16,157,889 | ) | (1,030,693 | ) | (25,666,826 | ) | 87,471,309 | 743,298 | 544,906 | — | ||||||||||||||||||||||||||||
Liquidity Services, | 22,867,914 | 3,014,528 | (6,817,717 | ) | 763,847 | (4,811,282 | ) | N/A | N/A | — | — | |||||||||||||||||||||||||||||
Livent Corp. | 283,604,447 | 26,068,984 | (46,459,237 | ) | (3,374,012 | ) | (36,453,997 | ) | 223,386,185 | 12,133,959 | — | — | ||||||||||||||||||||||||||||
LivePerson, | 22,355,644 | 998,152 | (19,474,188 | ) | (118,802,576 | ) | 114,922,968 | — | — | — | — | |||||||||||||||||||||||||||||
LiveRamp Holdings, Inc. | 103,421,134 | 11,512,673 | (18,140,310 | ) | 825,080 | 31,267,008 | 128,885,585 | 4,468,987 | — | — | ||||||||||||||||||||||||||||||
LTC Properties, Inc. | 103,413,657 | 9,584,856 | (11,855,468 | ) | (5,555,907 | ) | (5,757,281 | ) | 89,829,857 | 2,795,825 | 3,316,510 | — | ||||||||||||||||||||||||||||
LXP Industrial Trust | 207,205,029 | 22,323,315 | (19,713,879 | ) | (8,168,740 | ) | (25,816,586 | ) | 175,829,139 | 19,756,083 | 5,026,905 | — | ||||||||||||||||||||||||||||
M/I Homes, Inc. | 125,795,845 | 14,467,820 | (24,238,402 | ) | 7,048,737 | 34,662,693 | 157,736,693 | 1,876,924 | — | — | ||||||||||||||||||||||||||||||
Macerich Co. (The) | — | 189,738,321 | (13,451,019 | ) | (635,726 | ) | (17,090,109 | ) | 158,561,467 | 14,533,590 | 2,607,119 | — | ||||||||||||||||||||||||||||
Madison Square Garden Sports Corp., Class A | — | 273,156,110 | (28,856,997 | ) | (5,199,996 | ) | (40,791,412 | ) | 198,307,705 | 1,124,831 | — | — | ||||||||||||||||||||||||||||
Marcus Corp. (The) | 28,247,952 | 2,906,344 | (4,448,350 | ) | (2,781,614 | ) | 1,842,419 | 25,766,751 | 1,662,371 | 211,206 | — | |||||||||||||||||||||||||||||
MarineMax, Inc. | 45,781,328 | 5,063,207 | (12,782,190 | ) | (2,461,122 | ) | 8,579,617 | 44,180,840 | 1,346,156 | — | — | |||||||||||||||||||||||||||||
Marten Transport Ltd.(b) | 87,916,759 | 8,139,067 | (14,290,556 | ) | 2,617,846 | (25,319,312 | ) | N/A | N/A | 494,125 | — | |||||||||||||||||||||||||||||
Masterbrand, Inc. | 75,128,518 | 8,993,786 | (17,127,898 | ) | 1,993,862 | 35,754,877 | 104,743,145 | 8,620,835 | — | — | ||||||||||||||||||||||||||||||
Materion Corp. | 173,151,692 | 14,226,043 | (24,883,724 | ) | 5,953,594 | (26,450,287 | ) | 141,997,318 | 1,393,360 | 383,448 | — | |||||||||||||||||||||||||||||
Mativ Holdings, Inc. | 85,713,221 | 6,492,841 | (11,146,062 | ) | (14,721,321 | ) | (13,650,745 | ) | 52,687,934 | 3,694,806 | 1,981,719 | — | ||||||||||||||||||||||||||||
Matson, Inc. | 164,314,890 | 17,291,747 | (45,740,065 | ) | 7,632,289 | 67,888,516 | 211,387,377 | 2,382,635 | 1,656,395 | — | ||||||||||||||||||||||||||||||
Matthews International Corp., Class A | 79,704,067 | 8,259,915 | (14,188,036 | ) | (887,880 | ) | 7,154,318 | 80,042,384 | 2,057,116 | 1,003,442 | — | |||||||||||||||||||||||||||||
MaxLinear, Inc. | 185,644,514 | 12,371,392 | (19,121,391 | ) | (9,423,943 | ) | (58,655,738 | ) | 110,814,834 | 4,980,442 | — | — | ||||||||||||||||||||||||||||
MDC Holdings, Inc. | 164,121,617 | 16,945,928 | (25,195,586 | ) | 2,009,526 | 8,132,677 | 166,014,162 | 4,026,538 | 4,380,286 | — | ||||||||||||||||||||||||||||||
Medifast, Inc. | 82,543,091 | 6,749,050 | (11,659,318 | ) | (6,376,977 | ) | (16,226,874 | ) | 55,028,972 | 735,190 | 2,470,027 | — | ||||||||||||||||||||||||||||
Mercury Systems, Inc. | — | 157,904,902 | (28,392,373 | ) | 240,565 | (1,518,610 | ) | 128,234,484 | 3,457,387 | — | — | |||||||||||||||||||||||||||||
Merit Medical Systems, Inc. | 306,831,713 | 28,399,468 | (47,402,994 | ) | 9,708,608 | (28,953,126 | ) | 268,583,669 | 3,891,389 | — | — | |||||||||||||||||||||||||||||
Meritage Homes Corp. | 310,965,624 | 28,523,513 | (51,257,228 | ) | 12,270,327 | 3,305,604 | 303,807,840 | 2,482,293 | 1,413,330 | — | ||||||||||||||||||||||||||||||
Mesa Laboratories, Inc. | 63,979,486 | 5,178,530 | (7,915,153 | ) | (4,891,736 | ) | (20,030,319 | ) | 36,320,808 | 345,682 | 115,640 | — | ||||||||||||||||||||||||||||
Methode Electronics, Inc. | 115,112,247 | 8,553,435 | (14,363,672 | ) | (2,823,675 | ) | (50,922,102 | ) | 55,556,233 | 2,431,345 | 719,306 | — | ||||||||||||||||||||||||||||
MGP Ingredients, Inc.(b) | 108,229,100 | 10,885,559 | (17,352,408 | ) | 1,758,881 | (9,621,954 | ) | N/A | N/A | 264,449 | — | |||||||||||||||||||||||||||||
Middlesex Water Co. | 90,171,104 | 15,877,812 | (12,421,229 | ) | (1,371,770 | ) | (12,868,873 | ) | 79,387,044 | 1,198,295 | 752,535 | — | ||||||||||||||||||||||||||||
MillerKnoll, Inc. | 112,359,805 | 9,342,681 | (15,541,488 | ) | (801,209 | ) | 19,607,511 | 124,967,300 | 5,111,137 | 2,032,097 | — | |||||||||||||||||||||||||||||
Minerals Technologies, Inc. | 142,894,327 | 12,203,046 | (21,658,980 | ) | 72,684 | (13,187,367 | ) | 120,323,710 | 2,197,292 | 233,827 | — | |||||||||||||||||||||||||||||
ModivCare, Inc. | 77,735,239 | 4,495,523 | (7,999,765 | ) | (12,320,946 | ) | (35,618,548 | ) | 26,291,503 | 834,386 | — | — | ||||||||||||||||||||||||||||
Monarch Casino & Resort, Inc.(b) | 71,511,446 | 6,800,287 | (10,791,300 | ) | 1,757,494 | (21,864,476 | ) | N/A | N/A | 571,885 | — | |||||||||||||||||||||||||||||
Monro, Inc. | 112,801,237 | 8,403,160 | (13,999,342 | ) | (6,480,728 | ) | (41,817,409 | ) | 58,906,918 | 2,121,243 | 1,263,240 | — | ||||||||||||||||||||||||||||
Moog, Inc., Class A | 210,593,393 | 18,681,250 | (34,905,780 | ) | 6,362,470 | 18,325,895 | 219,057,228 | 1,939,246 | 1,109,132 | — | ||||||||||||||||||||||||||||||
Movado Group, Inc. | 32,925,280 | 2,918,212 | (5,262,985 | ) | (858,178 | ) | (860,749 | ) | 28,861,580 | 1,055,268 | 2,325,332 | — | ||||||||||||||||||||||||||||
Mr. Cooper Group, Inc. | 192,972,305 | — | (12,587,796 | ) | 3,373,700 | 56,025,948 | 239,784,157 | 4,476,926 | — | — | ||||||||||||||||||||||||||||||
Mueller Industries, Inc. | 304,166,566 | 27,571,578 | (50,595,168 | ) | 11,206,112 | (4,216,013 | ) | 288,133,075 | 3,833,596 | 2,445,120 | — | |||||||||||||||||||||||||||||
Myers Industries, Inc. | 56,831,331 | 5,006,751 | (8,001,651 | ) | (542,610 | ) | (8,699,885 | ) | 44,593,936 | 2,487,113 | 709,482 | — | ||||||||||||||||||||||||||||
MYR Group, Inc. | 152,100,623 | 14,389,923 | (25,015,266 | ) | 7,574,261 | 2,989,386 | 152,038,927 | 1,128,220 | — | — | ||||||||||||||||||||||||||||||
Myriad Genetics, Inc. | 137,194,406 | 10,618,840 | (17,742,215 | ) | (5,141,737 | ) | (36,251,657 | ) | 88,677,637 | 5,528,531 | — | — | ||||||||||||||||||||||||||||
Nabors Industries Ltd. | 79,576,874 | 7,380,942 | (13,273,151 | ) | (1,554,865 | ) | 2,466,565 | 74,596,365 | 605,785 | — | — | |||||||||||||||||||||||||||||
National Bank Holdings Corp., Class A | 90,851,696 | — | (5,764,542 | ) | (2,177,755 | ) | (7,637,967 | ) | 75,271,432 | 2,529,282 | 1,391,184 | — | ||||||||||||||||||||||||||||
National Presto Industries, Inc. | 26,513,693 | 2,479,587 | (3,170,192 | ) | (491,316 | ) | 623,183 | 25,954,955 | 358,197 | — | — |
32 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
National Vision Holdings, Inc. | $ | 108,050,132 | $ | 11,288,749 | $ | (20,695,924 | ) | $ | (5,720,573 | ) | $ | (7,540,330 | ) | $ | 85,382,054 | 5,277,012 | $ | — | $ | — | ||||||||||||||||||||
Navient | — | 134,231,385 | (24,775,433 | ) | (756,433 | ) | — | N/A | N/A | 1,115,817 | — | |||||||||||||||||||||||||||||
NBT Bancorp, Inc. | 100,235,168 | 6,279,869 | — | — | (5,960,766 | ) | 100,554,271 | 3,173,060 | 1,843,542 | — | ||||||||||||||||||||||||||||||
Nektar Therapeutics(a) | 9,905,892 | 973 | (9,649,944 | ) | (165,202,115 | ) | 164,945,194 | — | — | — | — | |||||||||||||||||||||||||||||
NeoGenomics, Inc. | 160,271,933 | 12,428,012 | (20,841,751 | ) | (23,760,454 | ) | (22,148,615 | ) | 105,949,125 | 8,613,750 | — | — | ||||||||||||||||||||||||||||
NETGEAR, Inc.(a) | 38,708,889 | 2,878,832 | (29,811,819 | ) | (33,024,682 | ) | 21,248,780 | — | — | — | — | |||||||||||||||||||||||||||||
NetScout Systems, Inc. | 140,765,615 | 15,647,174 | (16,927,787 | ) | (1,321,333 | ) | (1,670,936 | ) | 136,492,733 | 4,871,261 | — | — | ||||||||||||||||||||||||||||
New York Mortgage Trust, Inc. | 69,395,712 | 6,285,075 | (14,150,048 | ) | (15,067,862 | ) | 5,843,079 | 52,305,956 | 6,160,890 | 3,856,912 | — | |||||||||||||||||||||||||||||
Newell Brands, Inc. | — | 246,900,260 | (2,583,901 | ) | (112,445 | ) | (11,874,728 | ) | 232,329,186 | 25,728,592 | — | — | ||||||||||||||||||||||||||||
NexPoint Residential Trust, Inc. | 59,857,290 | 10,252,966 | — | (3,263,859 | ) | (17,516,388 | ) | 49,330,009 | 1,532,940 | 1,287,670 | — | |||||||||||||||||||||||||||||
NextGen Healthcare, Inc. | 67,649,550 | 7,232,733 | (11,569,174 | ) | 590,405 | 23,070,282 | 86,973,796 | 3,665,141 | — | — | ||||||||||||||||||||||||||||||
NMI Holdings, Inc., Class A | 136,021,945 | 13,546,064 | (27,778,306 | ) | 4,177,673 | 24,528,925 | 150,496,301 | 5,555,419 | — | — | ||||||||||||||||||||||||||||||
Northern Oil & Gas, Inc. | 163,667,170 | 33,770,326 | (26,622,389 | ) | 2,161,854 | 54,428,465 | 227,405,426 | 5,652,633 | 4,219,918 | — | ||||||||||||||||||||||||||||||
Northfield Bancorp, Inc. | 36,132,664 | 851,869 | (5,052,349 | ) | (2,730,658 | ) | (3,942,205 | ) | 25,259,321 | 2,672,944 | 773,597 | — | ||||||||||||||||||||||||||||
Northwest Bancshares, Inc. | 104,793,739 | 1,339,464 | (2,665,345 | ) | (1,648,925 | ) | (14,026,178 | ) | 87,792,755 | 8,581,892 | 3,514,017 | — | ||||||||||||||||||||||||||||
Northwest Natural Holding Co. | 121,713,935 | 10,621,908 | (15,706,663 | ) | (4,504,712 | ) | (19,137,745 | ) | 92,986,723 | 2,436,759 | 2,479,939 | — | ||||||||||||||||||||||||||||
NOW, Inc. | 89,728,989 | 7,676,230 | (16,582,045 | ) | 421,906 | 4,282,769 | 85,527,849 | 7,205,379 | — | — | ||||||||||||||||||||||||||||||
Nu Skin Enterprises, Inc., Class A | 141,589,824 | 10,268,720 | (16,700,928 | ) | (5,102,200 | ) | (58,512,135 | ) | 71,543,281 | 3,373,092 | 2,785,810 | — | ||||||||||||||||||||||||||||
NuVasive, | 156,966,020 | 11,789,124 | (130,731,239 | ) | (1,908,881 | ) | (3,566,134 | ) | N/A | N/A | — | — | ||||||||||||||||||||||||||||
NV5 Global, Inc. | 94,053,237 | 8,873,076 | (13,470,633 | ) | (2,433,900 | ) | (4,429,399 | ) | 82,592,381 | 858,281 | — | — | ||||||||||||||||||||||||||||
Oceaneering International, Inc. | 128,820,488 | 12,810,306 | (23,578,297 | ) | 5,478,098 | 51,479,319 | 175,009,914 | 6,804,429 | — | — | ||||||||||||||||||||||||||||||
ODP Corp. (The) | 132,156,368 | 10,766,297 | (38,491,207 | ) | 6,450,954 | (5,365,698 | ) | 105,516,714 | 2,286,386 | — | — | |||||||||||||||||||||||||||||
Office Properties Income Trust(a) | 43,526,404 | 2,326,942 | (23,937,723 | ) | (78,837,839 | ) | 56,922,216 | — | — | 1,754,898 | — | |||||||||||||||||||||||||||||
OFG Bancorp | 83,033,016 | 847,664 | (5,135,592 | ) | 617,892 | 15,656,258 | 95,019,238 | 3,182,158 | 1,424,384 | — | ||||||||||||||||||||||||||||||
O-I Glass, Inc. | 255,527,856 | 19,232,620 | (34,276,494 | ) | 3,678,535 | (69,011,279 | ) | 175,151,238 | 10,469,291 | — | — | |||||||||||||||||||||||||||||
Oil States International, Inc. | 38,785,896 | 3,787,036 | (6,498,891 | ) | (7,670,015 | ) | 7,723,338 | 36,127,364 | 4,316,292 | — | — | |||||||||||||||||||||||||||||
Olympic Steel, Inc. | 36,165,345 | 3,325,310 | (4,588,221 | ) | 1,313,238 | 1,191,240 | 37,406,912 | 665,485 | 170,827 | — | ||||||||||||||||||||||||||||||
Omnicell, Inc. | — | 171,390,802 | (1,839,805 | ) | (200,700 | ) | (31,860,878 | ) | 137,489,419 | 3,052,607 | — | — | ||||||||||||||||||||||||||||
OneSpan, Inc. | 44,893,310 | 3,702,749 | (5,494,302 | ) | (1,585,449 | ) | (15,375,425 | ) | 26,140,883 | 2,431,710 | — | — | ||||||||||||||||||||||||||||
Onto Innovation, Inc. | 316,769,875 | 31,632,025 | (64,364,597 | ) | 19,740,051 | 118,675,493 | 422,452,847 | 3,312,836 | — | — | ||||||||||||||||||||||||||||||
OPENLANE, Inc.(f) | 108,570,937 | 10,425,700 | (18,818,562 | ) | 592,614 | 9,489,931 | 110,260,620 | 7,390,122 | — | — | ||||||||||||||||||||||||||||||
OraSure Technologies, Inc. | 31,793,506 | 3,212,381 | (4,856,802 | ) | (2,875,781 | ) | 2,142,396 | 29,415,700 | 4,960,489 | — | — | |||||||||||||||||||||||||||||
Orion Office REIT, Inc.(a) | 27,459,287 | 2,290,218 | (24,696,460 | ) | (56,839,459 | ) | 51,786,414 | — | — | 399,636 | — | |||||||||||||||||||||||||||||
Orthofix Medical, Inc. | 41,630,802 | 4,788,441 | (4,976,695 | ) | (4,663,088 | ) | (4,861,557 | ) | 31,917,903 | 2,481,952 | — | — | ||||||||||||||||||||||||||||
OSI Systems, Inc. | 116,917,844 | 11,759,633 | (24,249,794 | ) | 4,858,795 | 13,366,407 | 122,652,885 | 1,039,079 | — | — | ||||||||||||||||||||||||||||||
Otter Tail Corp. | 218,970,729 | 20,160,881 | (36,087,203 | ) | 704,179 | 10,059,747 | 213,808,333 | 2,816,232 | 2,607,142 | — | ||||||||||||||||||||||||||||||
Outfront Media, Inc. | 160,477,176 | 25,971,895 | (24,086,178 | ) | (7,262,780 | ) | (56,058,655 | ) | 99,041,458 | 9,806,085 | 6,335,649 | — | ||||||||||||||||||||||||||||
Owens & Minor, Inc. | 80,595,549 | 9,443,629 | (15,712,166 | ) | (7,665,014 | ) | 16,839,437 | 83,501,435 | 5,167,168 | — | — | |||||||||||||||||||||||||||||
Oxford Industries, Inc. | 114,064,865 | 9,114,602 | (17,087,257 | ) | 2,131,172 | (12,183,071 | ) | 96,040,311 | 999,067 | 1,378,376 | — | |||||||||||||||||||||||||||||
Pacific Premier Bancorp, Inc. | 159,729,950 | 870,540 | (4,800,664 | ) | (4,388,165 | ) | (10,504,455 | ) | 140,907,206 | 6,475,515 | 4,388,916 | — | ||||||||||||||||||||||||||||
Pacira BioSciences, Inc. | 136,465,947 | 11,393,090 | (19,285,202 | ) | (7,223,597 | ) | (25,200,499 | ) | 96,149,739 | 3,133,955 | — | — | ||||||||||||||||||||||||||||
Palomar Holdings, Inc. | 101,500,711 | 8,807,012 | (17,619,154 | ) | (9,840,739 | ) | 1,930,603 | 84,778,433 | 1,670,511 | — | — | |||||||||||||||||||||||||||||
Papa John’s International, Inc. | — | 172,232,532 | (2,309,651 | ) | (192,928 | ) | (18,941,718 | ) | 150,788,235 | 2,210,323 | — | — | ||||||||||||||||||||||||||||
Park National Corp. | 124,774,768 | 9,229,636 | (17,605,995 | ) | (1,933,521 | ) | (22,719,712 | ) | 91,745,176 | 970,643 | 2,179,725 | — | ||||||||||||||||||||||||||||
Pathward Financial, Inc. | 81,920,594 | 569,166 | (10,554,797 | ) | 3,171,860 | 6,511,930 | 81,618,753 | 1,770,856 | 191,140 | — |
SCHEDULES OF INVESTMENTS | 33 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Patrick Industries, Inc. | $ | 107,684,347 | $ | 10,956,671 | $ | (22,810,309 | ) | $ | 2,829,160 | $ | 7,153,339 | $ | 105,813,208 | 1,409,715 | $ | 1,376,136 | $ | — | ||||||||||||||||||||||
Patterson-UTI Energy, Inc. | 184,904,881 | 98,159,359 | (45,132,076 | ) | 4,329,456 | 57,353,758 | 299,615,378 | 21,648,510 | 3,062,595 | — | ||||||||||||||||||||||||||||||
PDF Solutions, Inc. | 91,243,358 | 8,509,037 | (11,816,902 | ) | 2,299,895 | (23,511,541 | ) | 66,723,847 | 2,059,378 | — | — | |||||||||||||||||||||||||||||
Pebblebrook Hotel Trust | 110,799,552 | 17,211,422 | (13,918,252 | ) | 374,392 | (3,898,915 | ) | 110,568,199 | 8,135,997 | 158,768 | — | |||||||||||||||||||||||||||||
Pediatrix Medical Group, Inc. | 88,757,888 | 8,040,665 | (12,775,588 | ) | (6,063,621 | ) | (6,911,270 | ) | 71,048,074 | 5,589,935 | — | — | ||||||||||||||||||||||||||||
PennyMac Mortgage Investment Trust | 79,670,825 | 8,089,119 | (12,859,732 | ) | (8,741,938 | ) | 6,478,210 | 72,636,484 | 5,857,781 | 5,030,749 | — | |||||||||||||||||||||||||||||
Perdoceo Education Corp. | 65,730,718 | 6,516,280 | (13,796,114 | ) | 1,458,671 | 15,839,974 | 75,749,529 | 4,429,797 | 527,495 | — | ||||||||||||||||||||||||||||||
Perficient, Inc. | 182,203,662 | 15,601,072 | (26,894,775 | ) | (1,358,653 | ) | (33,544,201 | ) | 136,007,105 | 2,350,624 | — | — | ||||||||||||||||||||||||||||
PetMed Express, | 24,777,043 | 818,005 | (22,297,338 | ) | (17,191,176 | ) | 13,893,466 | — | — | 454,117 | — | |||||||||||||||||||||||||||||
PGT Innovations, Inc. | 109,483,894 | 10,355,867 | (21,727,499 | ) | 4,368,379 | 6,846,395 | 109,327,036 | 3,939,713 | — | — | ||||||||||||||||||||||||||||||
Phibro Animal Health Corp., Class A | 22,546,153 | 1,906,847 | (3,074,111 | ) | (2,938,372 | ) | (892,251 | ) | 17,548,266 | 1,374,179 | 355,898 | — | ||||||||||||||||||||||||||||
Phillips Edison & Co., Inc. | — | 294,236,575 | (24,625,849 | ) | 243,971 | (3,996,969 | ) | 265,857,728 | 7,926,587 | 2,354,930 | — | |||||||||||||||||||||||||||||
Phinia, Inc. | — | 123,434,505 | (6,750,964 | ) | (1,656,236 | ) | (29,989,014 | ) | 85,038,291 | 3,174,255 | 825,542 | — | ||||||||||||||||||||||||||||
Photronics, Inc. | 74,377,150 | 8,922,951 | (14,067,594 | ) | 2,413,480 | 13,661,413 | 85,307,400 | 4,221,049 | — | — | ||||||||||||||||||||||||||||||
Piper Sandler Cos | 138,401,808 | 18,649,408 | (16,644,688 | ) | 4,592,109 | 2,303,563 | 147,302,200 | 1,013,710 | 1,228,135 | — | ||||||||||||||||||||||||||||||
Plexus Corp. | 197,013,149 | 16,691,789 | (31,625,911 | ) | 3,875,335 | (13,434,249 | ) | 172,520,113 | 1,855,454 | — | — | |||||||||||||||||||||||||||||
Powell Industries, Inc. | 28,087,125 | 4,210,075 | (7,182,152 | ) | 2,168,027 | 23,835,055 | 51,118,130 | 616,624 | 342,325 | — | ||||||||||||||||||||||||||||||
PRA Group, Inc. | 110,378,706 | 6,530,256 | (10,810,436 | ) | (4,736,027 | ) | (50,438,268 | ) | 50,924,231 | 2,650,923 | — | — | ||||||||||||||||||||||||||||
Premier, Inc., Class A | — | 178,607,800 | (2,219,853 | ) | (11,475 | ) | (3,519,267 | ) | 172,857,205 | 8,039,870 | — | — | ||||||||||||||||||||||||||||
Prestige Consumer Healthcare, Inc. | 226,837,405 | 18,491,151 | (34,257,936 | ) | 2,638,551 | (22,422,347 | ) | 191,286,824 | 3,344,760 | — | — | |||||||||||||||||||||||||||||
PriceSmart, Inc. | 131,024,556 | 12,134,316 | (19,078,869 | ) | (123,974 | ) | 5,550,161 | 129,506,190 | 1,739,973 | 818,836 | — | |||||||||||||||||||||||||||||
Privia Health Group, Inc. | — | 208,341,844 | (10,050,727 | ) | (955,918 | ) | (38,774,372 | ) | 158,560,827 | 6,893,949 | — | — | ||||||||||||||||||||||||||||
ProAssurance Corp. | 65,153,421 | — | (1,777,503 | ) | (3,713,789 | ) | 5,042,128 | 64,704,257 | 3,425,318 | — | — | |||||||||||||||||||||||||||||
PROG Holdings, Inc. | 86,731,227 | 9,562,766 | (27,929,134 | ) | 4,863,540 | 29,265,034 | 102,493,433 | 3,086,222 | — | — | ||||||||||||||||||||||||||||||
Progress Software Corp. | 181,504,715 | 16,594,718 | (29,926,215 | ) | 5,161,825 | (19,382,486 | ) | 153,952,557 | 2,927,968 | 1,085,862 | — | |||||||||||||||||||||||||||||
ProPetro Holding Corp. | 50,270,388 | 5,753,344 | (17,038,101 | ) | (11,907,499 | ) | 35,243,389 | 62,321,521 | 5,862,796 | — | — | |||||||||||||||||||||||||||||
Proto Labs, Inc. | 65,500,720 | 5,902,711 | (12,569,381 | ) | (23,608,548 | ) | 11,287,259 | 46,512,761 | 1,761,847 | — | — | |||||||||||||||||||||||||||||
Provident Financial Services, Inc. | 100,062,405 | 485,346 | (2,349,964 | ) | (792,121 | ) | (19,417,293 | ) | 77,988,373 | 5,100,613 | 2,504,169 | — | ||||||||||||||||||||||||||||
Quaker Chemical Corp. | 196,336,906 | 15,943,945 | (25,945,042 | ) | (2,089,720 | ) | (34,543,849 | ) | 149,702,240 | 935,639 | 846,417 | — | ||||||||||||||||||||||||||||
Quanex Building Products Corp. | 51,998,546 | 5,919,491 | (10,950,376 | ) | 1,198,815 | 14,508,675 | 62,675,151 | 2,224,890 | 379,598 | — | ||||||||||||||||||||||||||||||
QuinStreet, Inc. | 58,321,774 | 3,359,751 | (5,124,369 | ) | (2,765,929 | ) | (22,631,663 | ) | 31,159,564 | 3,473,753 | — | — | ||||||||||||||||||||||||||||
Rambus, Inc. | 401,070,030 | 36,689,132 | (61,923,082 | ) | 19,628,500 | 15,612,710 | 411,077,290 | 7,368,297 | — | — | ||||||||||||||||||||||||||||||
Ranger Oil Corp., Class A(a) | 56,740,686 | 2,579,172 | (53,900,288 | ) | (3,320,048 | ) | (2,099,522 | ) | — | — | 103,721 | — | ||||||||||||||||||||||||||||
Rayonier Advanced Materials, Inc.(a) | 29,023,980 | 780,914 | (20,167,465 | ) | (23,724,998 | ) | 14,087,569 | — | — | — | — | |||||||||||||||||||||||||||||
Ready Capital Corp. | 72,885,125 | 55,381,562 | (21,122,109 | ) | (5,480,828 | ) | 6,187,142 | 107,850,892 | 10,667,744 | 7,254,800 | — | |||||||||||||||||||||||||||||
Redwood Trust, Inc. | 55,577,150 | 5,625,543 | (4,829,565 | ) | (10,760,467 | ) | 9,351,989 | 54,964,650 | 7,708,927 | 2,516,501 | — | |||||||||||||||||||||||||||||
REGENXBIO, Inc. | 51,752,926 | 6,008,054 | (6,222,124 | ) | (5,219,076 | ) | (1,374,351 | ) | 44,945,429 | 2,730,585 | — | — | ||||||||||||||||||||||||||||
Renasant Corp. | 119,652,965 | 444,100 | (3,645,102 | ) | (2,054,641 | ) | (15,123,237 | ) | 99,274,085 | 3,790,534 | 1,721,625 | — | ||||||||||||||||||||||||||||
Resideo Technologies, Inc. | 194,322,816 | 15,453,678 | (26,266,413 | ) | (4,817,813 | ) | (21,179,145 | ) | 157,513,123 | 9,969,185 | — | — | ||||||||||||||||||||||||||||
Resources Connection, Inc. | 39,718,836 | 3,664,111 | (6,210,290 | ) | (565,900 | ) | (4,380,328 | ) | 32,226,429 | 2,161,397 | 640,800 | — | ||||||||||||||||||||||||||||
Retail Opportunity Investments Corp. | 127,259,709 | 9,632,205 | (16,187,104 | ) | (5,954,627 | ) | (9,427,742 | ) | 105,322,441 | 8,507,467 | 2,683,440 | — | ||||||||||||||||||||||||||||
REX American Resources Corp. | 31,659,279 | 3,587,916 | (6,708,487 | ) | 996,576 | 12,084,302 | 41,619,586 | 1,022,092 | — | — | ||||||||||||||||||||||||||||||
REX Holdings, Inc.(a)(g) | 25,663,511 | 1,984,950 | (21,407,914 | ) | (27,527,403 | ) | 21,286,856 | — | — | 609,700 | — |
34 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Rogers Corp. | $ | 223,929,171 | $ | 17,460,867 | $ | (51,778,811 | ) | $ | (23,839,787 | ) | $ | (17,050,210 | ) | $ | 148,721,230 | 1,131,218 | $ | — | $ | — | ||||||||||||||||||||
RPT Realty | 59,512,895 | 5,638,822 | (13,362,434 | ) | (4,038,007 | ) | 9,206,027 | 56,957,303 | 5,393,684 | 1,619,747 | — | |||||||||||||||||||||||||||||
Ruth’s Hospitality Group, Inc.(a) | 36,264,292 | 1,594,123 | (49,039,469 | ) | 6,170,918 | 5,010,136 | — | — | — | — | ||||||||||||||||||||||||||||||
RXO, Inc. | 166,623,973 | 14,243,490 | (25,630,253 | ) | 1,309,115 | (711,801 | ) | 155,834,524 | 7,898,354 | — | — | |||||||||||||||||||||||||||||
S&T Bancorp, Inc. | 86,792,408 | 346,325 | (5,488,478 | ) | (1,952,804 | ) | (9,771,177 | ) | 69,926,274 | 2,582,211 | 1,740,746 | — | ||||||||||||||||||||||||||||
Sabre Corp. | 102,368,422 | 8,917,686 | (14,972,683 | ) | (4,361,928 | ) | 8,795,877 | 100,747,374 | 22,438,168 | — | — | |||||||||||||||||||||||||||||
Safety Insurance Group, Inc. | 74,943,572 | 3,457,365 | (3,796,706 | ) | (779,020 | ) | (5,723,040 | ) | 68,102,171 | 998,712 | 1,862,886 | — | ||||||||||||||||||||||||||||
Sally Beauty Holdings, Inc. | 121,550,237 | 8,015,998 | (13,447,618 | ) | (3,016,658 | ) | (52,080,953 | ) | 61,021,006 | 7,281,743 | — | — | ||||||||||||||||||||||||||||
Sanmina Corp. | 259,046,060 | 20,630,245 | (41,196,766 | ) | 5,492,955 | (34,243,422 | ) | 209,729,072 | 3,863,837 | — | — | |||||||||||||||||||||||||||||
ScanSource, Inc. | 56,386,478 | 5,822,961 | (10,961,558 | ) | (1,997,999 | ) | 1,706,290 | 50,956,172 | 1,681,167 | — | — | |||||||||||||||||||||||||||||
Scholastic Corp. | 73,790,913 | 7,678,362 | (18,354,087 | ) | (280,171 | ) | 8,955,218 | 71,790,235 | 1,882,282 | 845,226 | — | |||||||||||||||||||||||||||||
Schrodinger, Inc. | — | 180,455,980 | (9,469,118 | ) | (2,333,896 | ) | (64,507,897 | ) | 104,145,069 | 3,683,943 | — | — | ||||||||||||||||||||||||||||
Seacoast Banking Corp. of Florida | 134,871,391 | 10,329,124 | (8,755,205 | ) | (5,770,842 | ) | (4,508,690 | ) | 126,165,778 | 5,745,254 | 2,140,696 | — | ||||||||||||||||||||||||||||
Select Medical Holdings Corp. | 196,195,141 | 17,345,582 | (32,236,198 | ) | 4,144,028 | (7,567,691 | ) | 177,880,862 | 7,039,211 | 1,862,316 | — | |||||||||||||||||||||||||||||
Semtech Corp. | 112,170,155 | 10,888,331 | (18,543,622 | ) | (3,984,507 | ) | 10,665,430 | 111,195,787 | 4,318,283 | — | — | |||||||||||||||||||||||||||||
Seneca Foods Corp.(a) | 20,048,629 | 864,059 | (13,891,365 | ) | (396,680 | ) | (6,624,643 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Sensient Technologies Corp. | — | 184,292,175 | (2,309,107 | ) | (112,025 | ) | (15,049,708 | ) | 166,821,335 | 2,852,622 | — | — | ||||||||||||||||||||||||||||
Service Properties Trust | 120,094,831 | 9,202,040 | (16,388,866 | ) | (3,673,699 | ) | (23,323,479 | ) | 85,910,827 | 11,171,759 | 4,756,385 | — | ||||||||||||||||||||||||||||
ServisFirst Bancshares, Inc. | 194,429,700 | 14,221,940 | (26,309,577 | ) | (8,800,774 | ) | (1,011,760 | ) | 172,529,529 | 3,307,064 | 1,889,041 | — | ||||||||||||||||||||||||||||
Shake Shack, Inc., Class A | 150,917,929 | 15,952,103 | (27,786,116 | ) | (2,207,106 | ) | 10,107,709 | 146,984,519 | 2,531,161 | — | — | |||||||||||||||||||||||||||||
Shenandoah Telecommunications Co. | 69,197,290 | 6,636,696 | (11,706,352 | ) | (8,259,818 | ) | 14,122,198 | 69,990,014 | 3,395,925 | — | — | |||||||||||||||||||||||||||||
Signet Jewelers Ltd. | 257,612,338 | 18,813,076 | (35,129,299 | ) | 8,776,961 | (29,824,912 | ) | 220,248,164 | 3,067,096 | 1,494,306 | — | |||||||||||||||||||||||||||||
Simmons First National Corp., Class A | 153,694,354 | — | (5,339,441 | ) | (3,862,283 | ) | (661,976 | ) | 143,830,654 | 8,480,581 | 3,515,022 | — | ||||||||||||||||||||||||||||
Simply Good Foods Co. (The) | 244,818,035 | 23,670,850 | (25,553,422 | ) | 1,679,754 | (33,476,916 | ) | 211,138,301 | 6,116,405 | — | — | |||||||||||||||||||||||||||||
Simulations Plus, Inc. | 51,277,409 | 5,332,267 | (9,296,968 | ) | (2,631,416 | ) | 202,295 | 44,883,587 | 1,076,345 | 137,406 | — | |||||||||||||||||||||||||||||
SiTime Corp. | — | 143,087,819 | (6,854,087 | ) | (144,417 | ) | (4,168,839 | ) | 131,920,476 | 1,154,665 | — | — | ||||||||||||||||||||||||||||
Six Flags Entertainment Corp. | 144,071,924 | 12,407,756 | (26,774,316 | ) | 1,186,386 | (17,200,047 | ) | 113,691,703 | 4,835,887 | — | — | |||||||||||||||||||||||||||||
SJW Group | 147,687,023 | 13,428,388 | (12,614,411 | ) | (552,839 | ) | (30,618,490 | ) | 117,329,671 | 1,951,916 | 1,476,438 | — | ||||||||||||||||||||||||||||
SkyWest, Inc. | 81,507,562 | 10,110,317 | (43,301,813 | ) | (8,018,629 | ) | 78,873,815 | 119,171,252 | 2,841,470 | — | — | |||||||||||||||||||||||||||||
SL Green Realty Corp. | 82,935,377 | 29,974,790 | (13,314,750 | ) | 2,598,539 | 58,783,258 | 160,977,214 | 4,315,743 | 6,940,868 | — | ||||||||||||||||||||||||||||||
Sleep Number Corp. | 48,750,697 | 4,135,996 | (8,567,837 | ) | (4,499,992 | ) | (4,756,106 | ) | 35,062,758 | 1,425,895 | — | — | ||||||||||||||||||||||||||||
SM Energy Co. | 252,060,526 | 24,474,401 | (56,494,741 | ) | 6,642,851 | 90,995,618 | 317,678,655 | 8,012,072 | 2,615,381 | — | ||||||||||||||||||||||||||||||
SMART Global Holdings, Inc. | 61,637,620 | 8,110,951 | (12,898,459 | ) | 905,526 | 24,558,441 | 82,314,079 | 3,380,455 | — | — | ||||||||||||||||||||||||||||||
Sonic Automotive, Inc., Class A(b) | 66,094,068 | 5,514,474 | (12,146,733 | ) | 2,107,452 | (32,296,288 | ) | N/A | N/A | 674,656 | — | |||||||||||||||||||||||||||||
Sonos, Inc. | 182,115,528 | 12,409,148 | (21,617,893 | ) | (12,585,943 | ) | (48,463,901 | ) | 111,856,939 | 8,664,364 | — | — | ||||||||||||||||||||||||||||
Southside Bancshares, Inc. | 72,522,777 | 444,359 | (7,151,973 | ) | (2,121,122 | ) | (7,813,649 | ) | 55,880,392 | 1,947,052 | 1,485,394 | — | ||||||||||||||||||||||||||||
SpartanNash Co. | 63,565,103 | 5,892,827 | (10,509,802 | ) | (1,967,906 | ) | (5,375,570 | ) | 51,604,652 | 2,345,666 | 1,081,762 | — | ||||||||||||||||||||||||||||
SPS Commerce, Inc. | 399,593,013 | 37,049,603 | (63,147,077 | ) | 19,436,567 | 29,259,059 | 422,191,165 | 2,474,598 | — | — | ||||||||||||||||||||||||||||||
SPX Technologies, Inc. | 232,117,646 | 21,726,421 | (38,241,234 | ) | 10,019,539 | 24,937,898 | 250,560,270 | 3,078,136 | — | — | ||||||||||||||||||||||||||||||
STAAR Surgical Co. | — | 147,745,547 | (9,686,887 | ) | 123,038 | (6,608,310 | ) | 131,573,388 | 3,274,599 | — | — | |||||||||||||||||||||||||||||
Standard Motor Products, Inc. | 50,334,610 | 5,109,460 | (8,615,479 | ) | (2,000,081 | ) | (2,416,611 | ) | 42,411,899 | 1,261,508 | 782,364 | — |
SCHEDULES OF INVESTMENTS | 35 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
Standex International Corp. | $ | 106,286,124 | $ | 10,907,772 | $ | (20,311,622 | ) | $ | 3,996,844 | $ | 15,675,067 | $ | 116,554,185 | 800,015 | $ | 476,832 | $ | — | ||||||||||||||||||||||
Stellar Bancorp, Inc. | 80,716,493 | 6,899,625 | (9,394,224 | ) | (1,207,098 | ) | (9,478,707 | ) | 67,536,089 | 3,167,734 | 843,051 | — | ||||||||||||||||||||||||||||
Stepan Co. | 158,190,511 | 12,276,246 | (21,064,996 | ) | (3,413,531 | ) | (38,509,139 | ) | 107,479,091 | 1,433,628 | 1,105,928 | — | ||||||||||||||||||||||||||||
Steven Madden Ltd. | 192,104,172 | 15,677,831 | (34,018,850 | ) | (328,651 | ) | (21,574,410 | ) | 151,860,092 | 4,779,984 | 2,170,297 | — | ||||||||||||||||||||||||||||
Stewart Information Services Corp. | 76,127,135 | 195,534 | (2,603,620 | ) | (1,929,964 | ) | 8,529,384 | 80,318,469 | 1,833,755 | 1,749,657 | — | |||||||||||||||||||||||||||||
StoneX Group, Inc. | 132,431,538 | 10,206,916 | (16,745,529 | ) | 3,550,966 | (12,416,577 | ) | 117,027,314 | 1,207,463 | — | — | |||||||||||||||||||||||||||||
Strategic Education, Inc. | 145,694,199 | 10,952,699 | (21,508,516 | ) | 250,836 | (23,556,656 | ) | 111,832,562 | 1,486,147 | 1,918,634 | — | |||||||||||||||||||||||||||||
Stride, Inc. | 116,847,368 | 11,082,128 | (21,694,087 | ) | 508,582 | 16,253,968 | 122,997,959 | 2,731,467 | — | — | ||||||||||||||||||||||||||||||
Sturm Ruger & Co., Inc. | 73,737,279 | 6,942,241 | (11,350,755 | ) | (1,866,764 | ) | (5,095,105 | ) | 62,366,896 | 1,196,602 | 857,347 | — | ||||||||||||||||||||||||||||
Summit Hotel Properties, Inc. | 54,522,356 | 4,429,632 | (7,125,600 | ) | (5,916,092 | ) | (3,752,033 | ) | 42,158,263 | 7,268,666 | 924,085 | — | ||||||||||||||||||||||||||||
SunCoke Energy, Inc. | 54,577,450 | 4,797,963 | (8,537,332 | ) | (304,286 | ) | 6,863,927 | 57,397,722 | 5,654,948 | 1,080,591 | — | |||||||||||||||||||||||||||||
Sunstone Hotel Investors, Inc. | 151,302,794 | 12,587,701 | (25,392,381 | ) | (1,986,469 | ) | (5,717,992 | ) | 130,793,653 | 13,988,626 | 1,704,729 | — | ||||||||||||||||||||||||||||
Supernus Pharmaceuticals, Inc. | 142,742,976 | 11,214,531 | (19,310,153 | ) | (208,958 | ) | (32,816,038 | ) | 101,622,358 | 3,685,976 | — | — | ||||||||||||||||||||||||||||
Sylvamo Corp. | 107,425,527 | 15,325,282 | (11,864,717 | ) | 1,213,963 | (6,528,756 | ) | 105,571,299 | 2,402,624 | 1,138,396 | — | |||||||||||||||||||||||||||||
Talos Energy, Inc.(h) | N/A | 49,358,740 | (22,350,061 | ) | (3,892,748 | ) | 2,624,828 | 111,537,509 | 6,784,520 | — | — | |||||||||||||||||||||||||||||
Tandem Diabetes Care, Inc. | 190,328,065 | 12,080,091 | (19,110,697 | ) | (7,578,903 | ) | (84,457,461 | ) | 91,261,095 | 4,393,890 | — | — | ||||||||||||||||||||||||||||
Tanger Factory Outlet Centers, Inc. | 149,288,290 | 14,310,897 | (21,908,030 | ) | 437,883 | 18,365,063 | 160,494,103 | 7,101,509 | 3,690,964 | — | ||||||||||||||||||||||||||||||
TechTarget, Inc. | 70,076,304 | 6,449,094 | (13,791,273 | ) | (12,771,380 | ) | 1,943,383 | 51,906,128 | 1,709,688 | — | — | |||||||||||||||||||||||||||||
Telephone & Data Systems, Inc. | 76,222,146 | 7,774,034 | (16,406,649 | ) | (4,518,491 | ) | 57,964,633 | 121,035,673 | 6,610,359 | 2,626,415 | — | |||||||||||||||||||||||||||||
Tennant Co. | 92,604,246 | 9,622,510 | (17,216,646 | ) | 1,149,942 | 6,874,025 | 93,034,077 | 1,254,674 | 703,415 | — | ||||||||||||||||||||||||||||||
Thryv Holdings, Inc. | 51,410,241 | 4,838,663 | (8,293,502 | ) | (3,403,502 | ) | (5,932,081 | ) | 38,619,819 | 2,057,529 | — | — | ||||||||||||||||||||||||||||
TimkenSteel Corp. | 52,888,690 | 5,605,846 | (11,057,690 | ) | 2,028,346 | 7,250,333 | 56,715,525 | 2,611,212 | — | — | ||||||||||||||||||||||||||||||
Titan International, Inc. | 38,870,980 | 4,194,105 | (6,991,088 | ) | 105,245 | 10,461,013 | 46,640,255 | 3,472,841 | — | — | ||||||||||||||||||||||||||||||
Tompkins Financial Corp. | 60,143,045 | 4,810,030 | (8,016,254 | ) | (2,949,045 | ) | (12,629,928 | ) | 41,357,848 | 844,210 | 1,083,483 | — | ||||||||||||||||||||||||||||
Tredegar Corp.(a) | 16,623,950 | 524,578 | (11,477,416 | ) | (20,166,677 | ) | 14,495,565 | — | — | 235,104 | — | |||||||||||||||||||||||||||||
TreeHouse Foods, Inc. | 185,248,352 | 15,112,191 | (25,572,900 | ) | 2,064,768 | (25,892,075 | ) | 150,960,336 | 3,463,982 | — | — | |||||||||||||||||||||||||||||
Tri Pointe Homes, Inc. | 185,957,853 | 18,919,111 | (38,405,239 | ) | 6,936,743 | 9,394,829 | 182,803,297 | 6,683,850 | — | — | ||||||||||||||||||||||||||||||
Trinity Industries, Inc. | 144,524,275 | 12,511,868 | (22,057,471 | ) | (411,149 | ) | 4,919 | 134,572,442 | 5,526,589 | 3,016,481 | — | |||||||||||||||||||||||||||||
Trinseo PLC(a) | 52,985,063 | 3,316,518 | (25,344,346 | ) | (71,026,237 | ) | 40,069,002 | — | — | 374,243 | — | |||||||||||||||||||||||||||||
TripAdvisor, Inc. | — | 117,876,068 | (1,636,551 | ) | (11,724 | ) | 4,293,106 | 120,520,899 | 7,269,053 | — | — | |||||||||||||||||||||||||||||
Triumph Financial, Inc. | 95,710,400 | 4,721,209 | (16,451,762 | ) | (4,326,858 | ) | 15,039,281 | 94,692,270 | 1,461,526 | — | — | |||||||||||||||||||||||||||||
Triumph Group, Inc. | 47,247,782 | — | — | — | (16,021,034 | ) | 31,226,748 | 4,076,599 | — | — | ||||||||||||||||||||||||||||||
TrueBlue, Inc. | 42,436,215 | 3,835,054 | (8,542,668 | ) | (3,280,361 | ) | (3,716,306 | ) | 30,731,934 | 2,094,883 | — | — | ||||||||||||||||||||||||||||
Trupanion, Inc. | 109,637,605 | 7,064,237 | (11,614,239 | ) | (16,511,800 | ) | (20,832,409 | ) | 67,743,394 | 2,402,248 | — | — | ||||||||||||||||||||||||||||
TrustCo Bank Corp. | 40,955,608 | 282,643 | (91,279 | ) | (65,533 | ) | (5,913,635 | ) | 35,167,804 | 1,288,670 | 926,775 | — | ||||||||||||||||||||||||||||
Trustmark Corp. | 99,208,760 | 3,552,677 | (878,201 | ) | (537,773 | ) | (11,739,113 | ) | 89,606,350 | 4,123,624 | 1,876,822 | — | ||||||||||||||||||||||||||||
TTM Technologies, Inc. | 100,193,427 | 8,953,389 | (14,243,099 | ) | (815,189 | ) | (3,759,813 | ) | 90,328,715 | 7,013,099 | — | — | ||||||||||||||||||||||||||||
Two Harbors Investment Corp. | 103,215,451 | 9,351,799 | (16,603,722 | ) | (13,261,373 | ) | 3,263,325 | 85,965,480 | 6,492,861 | 7,282,981 | — | |||||||||||||||||||||||||||||
U.S. Physical Therapy, Inc. | 92,764,634 | 22,481,038 | (15,827,488 | ) | 1,584,154 | (8,182,127 | ) | 92,820,211 | 1,011,885 | 855,197 | — | |||||||||||||||||||||||||||||
U.S. Silica Holdings, Inc. | 65,681,594 | 7,163,199 | (11,200,991 | ) | 754,512 | 10,703,993 | 73,102,307 | 5,206,717 | — | — | ||||||||||||||||||||||||||||||
UFP Technologies, Inc. | — | 94,547,943 | (5,860,958 | ) | (436,591 | ) | (11,590,705 | ) | 76,659,689 | 474,820 | — | — | ||||||||||||||||||||||||||||
Ultra Clean Holdings, Inc. | 109,650,769 | 9,789,911 | (19,491,474 | ) | (3,929,837 | ) | (6,478,543 | ) | 89,540,826 | 3,017,891 | — | — | ||||||||||||||||||||||||||||
UniFirst Corp. | 193,944,463 | 15,295,329 | (29,308,619 | ) | (2,082,917 | ) | (11,612,777 | ) | 166,235,479 | 1,019,787 | 669,192 | — | ||||||||||||||||||||||||||||
uniQure NV(a) | 60,288,023 | 3,969,038 | (28,208,473 | ) | (74,210,898 | ) | 38,162,310 | — | — | — | — | |||||||||||||||||||||||||||||
United Community Banks, Inc. | 223,750,587 | 5,909,840 | (3,918,697 | ) | (1,923,960 | ) | (19,894,872 | ) | 203,922,898 | 8,025,301 | 3,715,987 | — | ||||||||||||||||||||||||||||
United Fire Group, Inc. | 42,728,827 | 1,445,732 | (5,141,794 | ) | (6,013,075 | ) | (4,730,264 | ) | 28,289,426 | 1,432,376 | 505,447 | — |
36 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments��(unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds |
| ||||||||||||||||||||||||||||||
United Natural Foods, Inc. | $ | 114,892,166 | $ | 8,625,125 | $ | (16,776,051 | ) | $ | (10,218,394 | ) | $ | (40,577,342 | ) | $ | 55,945,504 | 3,956,542 | $ | — | $ | — | ||||||||||||||||||||
Uniti Group, Inc. | 61,356,045 | 7,053,055 | (12,505,588 | ) | (11,648,120 | ) | 31,982,114 | 76,237,506 | 16,152,014 | 5,092,575 | — | |||||||||||||||||||||||||||||
Unitil Corp. | 66,644,509 | 5,639,808 | (9,652,150 | ) | (668,230 | ) | (15,516,043 | ) | 46,447,894 | 1,087,518 | 932,587 | — | ||||||||||||||||||||||||||||
Universal Corp. | 94,377,815 | 8,798,972 | (14,738,992 | ) | (1,505,766 | ) | (8,401,971 | ) | 78,530,058 | 1,663,420 | 2,776,318 | — | ||||||||||||||||||||||||||||
Universal Health Realty Income Trust | 44,402,307 | 4,052,025 | (6,618,467 | ) | (2,901,681 | ) | (4,191,553 | ) | 34,742,631 | 859,328 | 1,278,607 | — | ||||||||||||||||||||||||||||
Universal Insurance Holdings, | 36,438,725 | 2,388,188 | (28,474,238 | ) | (19,029,225 | ) | 8,676,550 | — | — | 627,957 | — | |||||||||||||||||||||||||||||
Upbound Group, Inc. | 89,481,843 | 9,664,691 | (25,878,929 | ) | (4,872,151 | ) | 22,876,987 | 91,272,441 | 3,099,234 | 2,469,001 | — | |||||||||||||||||||||||||||||
Urban Edge Properties | 128,562,943 | 12,484,603 | (21,874,853 | ) | (1,712,119 | ) | 3,745,883 | 121,206,457 | 7,942,756 | 2,683,844 | — | |||||||||||||||||||||||||||||
Urstadt Biddle Properties, Inc.(b) | 34,221,124 | 3,466,739 | (635,620 | ) | 21,014 | 3,293,438 | N/A | N/A | 438,356 | — | ||||||||||||||||||||||||||||||
Vanda Pharmaceuticals, Inc.(a) | 28,107,205 | 2,239,212 | (21,717,754 | ) | (58,839,841 | ) | 50,211,178 | — | — | — | — | |||||||||||||||||||||||||||||
Varex Imaging Corp. | 52,999,203 | 5,988,521 | (9,643,023 | ) | (2,350,420 | ) | 4,258,732 | 51,253,013 | 2,727,675 | — | — | |||||||||||||||||||||||||||||
Vector Group Ltd. | 114,861,598 | 10,211,525 | (16,993,185 | ) | 1,472,746 | (14,268,473 | ) | 95,284,211 | 8,955,283 | 3,779,398 | — | |||||||||||||||||||||||||||||
Veeco Instruments, Inc. | 78,954,802 | 13,043,462 | (10,788,749 | ) | 2,752,082 | 22,978,344 | 106,939,941 | 3,804,338 | — | — | ||||||||||||||||||||||||||||||
Veradigm, Inc. | 103,631,851 | 9,031,948 | (15,715,577 | ) | 1,277,561 | (1,292,568 | ) | 96,933,215 | 7,376,957 | — | — | |||||||||||||||||||||||||||||
Vericel Corp. | 100,897,978 | 10,182,659 | (17,647,586 | ) | (6,815,169 | ) | 21,204,729 | 107,822,611 | 3,216,665 | — | — | |||||||||||||||||||||||||||||
Veris Residential, Inc. | 84,533,556 | 8,904,723 | (15,208,576 | ) | 1,110,333 | 9,890,462 | 89,230,498 | 5,407,909 | 268,774 | — | ||||||||||||||||||||||||||||||
Veritex Holdings, Inc. | 68,439,831 | — | (1,938,628 | ) | (2,513,532 | ) | 1,411,808 | 65,399,479 | 3,643,425 | 1,499,230 | — | |||||||||||||||||||||||||||||
Veritiv Corp. | 132,456,525 | 12,764,805 | (22,626,683 | ) | 7,570,496 | 24,366,872 | 154,532,015 | 914,932 | 1,220,654 | — | ||||||||||||||||||||||||||||||
Verra Mobility Corp., Class A | 171,896,557 | 45,225,282 | (20,504,344 | ) | 717,682 | 16,972,377 | 214,307,554 | 11,460,297 | — | — | ||||||||||||||||||||||||||||||
Viad Corp. | 31,387,728 | 3,785,950 | (6,241,582 | ) | (3,874,645 | ) | 11,911,090 | 36,968,541 | 1,411,013 | — | — | |||||||||||||||||||||||||||||
Viasat, Inc.(b) | 188,377,568 | 16,438,401 | (31,503,083 | ) | (3,881,660 | ) | 4,530,475 | N/A | N/A | — | — | |||||||||||||||||||||||||||||
Viavi Solutions, Inc. | 177,432,688 | 14,138,100 | (27,817,789 | ) | (8,636,900 | ) | (17,840,446 | ) | 137,275,653 | 15,019,218 | — | — | ||||||||||||||||||||||||||||
Victoria’s Secret & Co. | — | 112,981,376 | (10,512,696 | ) | (487,565 | ) | (15,096,796 | ) | 86,884,319 | 5,208,892 | — | — | ||||||||||||||||||||||||||||
Virtus Investment Partners, Inc. | 94,337,674 | 6,115,130 | (13,327,751 | ) | (676,245 | ) | 6,557,084 | 93,005,892 | 460,448 | 1,617,361 | — | |||||||||||||||||||||||||||||
Vista Outdoor, Inc. | 113,962,723 | 10,758,181 | (16,219,633 | ) | 593,979 | 20,614,428 | 129,709,678 | 3,916,355 | — | — | ||||||||||||||||||||||||||||||
Vital Energy, Inc. | 55,637,675 | 10,002,815 | (15,892,854 | ) | (9,677,992 | ) | 22,557,893 | 62,627,537 | 1,130,053 | — | — | |||||||||||||||||||||||||||||
Wabash National Corp. | 85,424,750 | 7,693,838 | (14,898,819 | ) | 2,573,135 | (13,774,096 | ) | 67,018,808 | 3,173,239 | 543,291 | — | |||||||||||||||||||||||||||||
Walker & Dunlop, Inc. | 170,050,668 | 20,675,923 | (18,408,193 | ) | 68,582 | (5,244,900 | ) | 167,142,080 | 2,251,375 | 2,788,044 | — | |||||||||||||||||||||||||||||
Washington Federal, Inc. | 118,876,050 | 11,359,335 | (443,137 | ) | (85,905 | ) | (18,461,203 | ) | 111,245,140 | 4,342,121 | 2,144,662 | — | ||||||||||||||||||||||||||||
WD-40 Co. | 176,341,432 | 16,162,788 | (30,961,420 | ) | 914,950 | 23,657,857 | 186,115,607 | 915,743 | 1,609,081 | — | ||||||||||||||||||||||||||||||
Westamerica BanCorp | 85,488,457 | 624,344 | (6,191,244 | ) | (2,573,061 | ) | 469,758 | 77,818,254 | 1,799,266 | 1,628,264 | — | |||||||||||||||||||||||||||||
Whitestone REIT | 30,906,498 | 3,287,016 | (3,660,157 | ) | (2,409,872 | ) | 2,475,079 | 30,598,564 | 3,177,421 | 797,149 | — | |||||||||||||||||||||||||||||
Winnebago Industries, Inc. | 128,434,026 | 13,108,360 | (24,293,190 | ) | 2,492,866 | 1,522,383 | 121,264,445 | 2,039,772 | 1,861,657 | — | ||||||||||||||||||||||||||||||
WisdomTree, Inc. | 47,941,123 | 1,246,940 | (4,373,993 | ) | (370,836 | ) | 9,592,664 | 54,035,898 | 7,719,414 | 482,787 | — | |||||||||||||||||||||||||||||
Wolverine World Wide, Inc. | 97,581,873 | 7,269,171 | (10,888,022 | ) | (10,950,317 | ) | (39,698,031 | ) | 43,314,674 | 5,374,029 | 1,094,477 | — | ||||||||||||||||||||||||||||
World Kinect Corp.(i) | 114,988,874 | 7,999,080 | (17,948,579 | ) | (5,766,908 | ) | (8,109,388 | ) | 91,163,079 | 4,064,337 | 1,807,687 | — | ||||||||||||||||||||||||||||
WSFS Financial Corp. | 159,891,957 | — | (5,384,844 | ) | (2,312,158 | ) | (2,192,840 | ) | 150,002,115 | 4,109,647 | 1,275,395 | — | ||||||||||||||||||||||||||||
Xencor, Inc. | 121,801,515 | 9,561,636 | (15,832,242 | ) | (8,118,402 | ) | (24,950,184 | ) | 82,462,323 | 4,092,423 | — | — | ||||||||||||||||||||||||||||
Xenia Hotels & Resorts, Inc. | 109,489,891 | 3,356,100 | (14,257,594 | ) | (14,530,064 | ) | 1,252,215 | 85,310,548 | 7,241,982 | 1,485,355 | — | |||||||||||||||||||||||||||||
XPEL, Inc. | 96,821,615 | 14,111,064 | (13,145,799 | ) | 1,207,965 | 11,741,052 | 110,735,897 | 1,436,077 | — | — | ||||||||||||||||||||||||||||||
Xperi, Inc. | 33,237,769 | 3,356,718 | (4,500,421 | ) | (9,239,790 | ) | 5,997,800 | 28,852,076 | 2,926,174 | — | — |
SCHEDULES OF INVESTMENTS | 37 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Affiliates (continued)
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||||||||
| Yelp, Inc. | $ | 155,587,661 | $ | 16,392,777 | $ | (32,896,048 | ) | $ | 3,855,319 | $ | 50,013,436 | $ | 192,953,145 | 4,639,412 | $ | — | $ | — | |||||||||||||||||||||||
Zumiez, Inc.(a) | 20,807,438 | 853,468 | (17,265,476 | ) | (12,559,816 | ) | 8,164,386 | — | — | — | — | |||||||||||||||||||||||||||||||
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$ | (2,021,963,743 | ) | $ | 410,290,588 | $ | 64,658,751,523 | $ | 594,665,198 | $ | — | ||||||||||||||||||||||||||||||||
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(a) | As of period end, the entity is no longer held. |
(b) | As of period end, the entity was not considered an affiliate. |
(c) | Represents net amount purchased (sold). |
(d) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
(e) | Formerly the Harsco Corp. |
(f) | Formerly the KAR Auction Services, Inc. |
(g) | Formerly the RE/MAX Holdings, Inc. |
(h) | As of the beginning of the period, the entity was not considered an affiliate. |
(i) | Formerly the World Fuel Services Corp. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Russell 2000 E-Mini Index | 2,857 | 12/15/23 | $ | 256,930 | $ | (6,440,537 | ) | |||||||||
|
|
OTC Total Return Swaps
Reference Entity | Payment Frequency | Counterparty(a) | Termination Date | Net Notional | Accrued Unrealized Appreciation (Depreciation) | Net Value of Reference Entity | Gross Notional Amount Net Asset Percentage | |||||||||||||||||
Equity Securities | ||||||||||||||||||||||||
Long/Short | Monthly | Goldman Sachs Bank USA(b) | 08/19/26 | $ | 443,620,370 | $ | (16,712,255 | )(c) | $ | 427,507,288 | 0.7% | |||||||||||||
Monthly | HSBC Bank PLC(d) | 02/10/28 | 521,285,614 | (22,036,393 | )(e) | 500,092,413 | 0.8 | |||||||||||||||||
Monthly | JPMorgan Chase Bank NA(f) | 02/08/24 | 287,495,086 | (7,034,664 | )(g) | 281,398,948 | 0.4 | |||||||||||||||||
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| |||||||||||||||||||||
$ | (45,783,312 | ) | $ | 1,208,998,649 | ||||||||||||||||||||
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|
|
(a) | The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. |
(c) | Amount includes $(599,173) of net dividends, payable for referenced securities purchased and financing fees. |
(e) | Amount includes $(843,192) of net dividends, payable for referenced securities purchased and financing fees. |
(g) | Amount includes $(938,526) of net dividends, payable for referenced securities purchased and financing fees. |
The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:
(b) | (d) | (f) | ||||
Range: | 0-250 basis points | 40 basis points | 40 basis points | |||
Benchmarks: | USD - 1D Overnight Fed Funds Effective Rate | USD - 1D Overnight Bank Funding Rate | USD - 1D Overnight Bank Funding Rate | |||
(FEDL01) | (OBFR01) | (OBFR01) |
38 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 19, 2026.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Aerospace & Defense |
| |||||||||||||||
Triumph Group, Inc. | 364,664 | $ | 2,793,326 | 0.7 | % | |||||||||||
|
|
|
| |||||||||||||
Banks | ||||||||||||||||
Bank of Hawaii Corp. | 4,219 | 209,642 | 0.1 | |||||||||||||
BankUnited, Inc. | 32,961 | 748,215 | 0.2 | |||||||||||||
Berkshire Hills Bancorp, Inc. | 17,893 | 358,755 | 0.1 | |||||||||||||
Cathay General Bancorp | 1,443,673 | 50,182,074 | 11.7 | |||||||||||||
Central Pacific Financial Corp. | 123,068 | 2,052,774 | 0.5 | |||||||||||||
Community Bank System, Inc. | 24,478 | 1,033,216 | 0.2 | |||||||||||||
First BanCorp/Puerto Rico | 88,271 | 1,188,128 | 0.3 | |||||||||||||
National Bank Holdings Corp., Class A | 17,682 | 526,216 | 0.1 | |||||||||||||
PacWest Bancorp | 2,276,514 | 18,007,226 | 4.2 | |||||||||||||
Simmons First National Corp., Class A | 44,998 | 763,166 | 0.2 | |||||||||||||
|
|
|
| |||||||||||||
75,069,412 | ||||||||||||||||
Capital Markets | ||||||||||||||||
Artisan Partners Asset Management, Inc., Class A | 869,461 | 32,535,231 | 7.6 | |||||||||||||
Moelis & Co., Class A | 1,803,688 | 81,400,439 | 19.0 | |||||||||||||
|
|
|
| |||||||||||||
113,935,670 | ||||||||||||||||
Commercial Services & Supplies |
| |||||||||||||||
Pitney Bowes, Inc. | 1,924,204 | 5,811,096 | 1.4 | |||||||||||||
|
|
|
| |||||||||||||
Communications Equipment |
| |||||||||||||||
Extreme Networks, Inc. | 2,491,619 | 60,322,096 | 14.1 | |||||||||||||
|
|
|
| |||||||||||||
Consumer Finance |
| |||||||||||||||
Bread Financial Holdings, Inc. | 23,681 | 809,890 | 0.2 | |||||||||||||
Green Dot Corp., Class A | 19,531 | 272,067 | 0.0 | |||||||||||||
|
|
|
| |||||||||||||
1,081,957 | ||||||||||||||||
Financial Services |
| |||||||||||||||
Jackson Financial, Inc., Class A | 793,962 | 30,345,228 | 7.1 | |||||||||||||
Payoneer Global, Inc. | 2,616,061 | 16,010,293 | 3.8 | |||||||||||||
Radian Group, Inc. | 88,317 | 2,217,640 | 0.5 | |||||||||||||
|
|
|
| |||||||||||||
48,573,161 | ||||||||||||||||
Health Care Providers & Services |
| |||||||||||||||
RadNet, Inc. | 439,894 | 12,400,612 | 2.9 | |||||||||||||
|
|
|
| |||||||||||||
Insurance | ||||||||||||||||
Ambac Financial Group, Inc. | 141,562 | 1,707,238 | 0.4 | |||||||||||||
Employers Holdings, Inc. | 15,954 | 637,362 | 0.1 | |||||||||||||
Horace Mann Educators Corp. | 26,490 | 778,276 | 0.2 | |||||||||||||
Lincoln National Corp. | 80,266 | 1,981,767 | 0.5 | |||||||||||||
Stewart Information Services Corp. | 12,727 | 557,443 | 0.1 | |||||||||||||
|
|
|
| |||||||||||||
5,662,086 | ||||||||||||||||
Metals & Mining | ||||||||||||||||
Warrior Met Coal, Inc. | 72,022 | 3,678,884 | 0.9 | |||||||||||||
|
|
|
|
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Mortgage Real Estate Investment Trusts (REITs) | ||||||||||||||||
Arbor Realty Trust, Inc. | 4,405,032 | $ | 66,868,386 | 15.6 | % | |||||||||||
|
|
|
| |||||||||||||
Office REITs | ||||||||||||||||
Douglas Emmett, Inc. | 55,919 | 713,526 | 0.1 | |||||||||||||
SL Green Realty Corp. | 31,923 | 1,190,728 | 0.3 | |||||||||||||
|
|
|
| |||||||||||||
1,904,254 | ||||||||||||||||
Oil, Gas & Consumable Fuels | ||||||||||||||||
Par Pacific Holdings, Inc. | 504,635 | 18,136,582 | 4.2 | |||||||||||||
|
|
|
| |||||||||||||
Residential REITs | ||||||||||||||||
NexPoint Residential Trust, Inc. | 9,949 | 320,159 | 0.1 | |||||||||||||
|
|
|
| |||||||||||||
Retail REITs | ||||||||||||||||
SITE Centers Corp. | 888,046 | 10,949,607 | 2.6 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — Goldman Sachs Bank USA | $ | 427,507,288 | ||||||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 10, 2028.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Aerospace & Defense | ||||||||||||||||
Triumph Group, Inc. | 757,016 | $ | 5,798,743 | 1.2 | % | |||||||||||
|
|
|
| |||||||||||||
Banks | ||||||||||||||||
Atlantic Union Bankshares Corp. | 228,992 | 6,590,390 | 1.3 | |||||||||||||
Central Pacific Financial Corp. | 15,047 | 250,984 | 0.0 | |||||||||||||
Fulton Financial Corp. | 1,572,633 | 19,044,586 | 3.8 | |||||||||||||
Heritage Financial Corp. | 16,124 | 262,982 | 0.1 | |||||||||||||
Hilltop Holdings, Inc. | 32,234 | 914,156 | 0.2 | |||||||||||||
Independent Bank Corp. | 17,125 | 840,666 | 0.2 | |||||||||||||
PacWest Bancorp | 180,135 | 1,424,868 | 0.3 | |||||||||||||
Preferred Bank | 250,034 | 15,564,617 | 3.1 | |||||||||||||
Southside Bancshares, Inc. | 10,943 | 314,064 | 0.1 | |||||||||||||
Veritex Holdings, Inc. | 20,436 | 366,826 | 0.1 | |||||||||||||
Washington Federal, Inc. | 28,637 | 733,680 | 0.1 | |||||||||||||
WSFS Financial Corp. | 13,100 | 478,150 | 0.1 | |||||||||||||
|
|
|
| |||||||||||||
46,785,969 | ||||||||||||||||
Capital Markets | ||||||||||||||||
Artisan Partners Asset Management, Inc., Class A | 62,857 | 2,352,109 | 0.5 | |||||||||||||
Moelis & Co., Class A | 95,682 | 4,318,129 | 0.8 | |||||||||||||
|
|
|
| |||||||||||||
6,670,238 | ||||||||||||||||
Commercial Services & Supplies |
| |||||||||||||||
Pitney Bowes, Inc. | 521,829 | 1,575,924 | 0.3 | |||||||||||||
|
|
|
| |||||||||||||
Consumer Finance | ||||||||||||||||
Bread Financial Holdings, Inc. | 1,585,885 | 54,237,267 | 10.8 | |||||||||||||
|
|
|
|
SCHEDULES OF INVESTMENTS | 39 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Diversified REITs | ||||||||||||||||
Global Net Lease, Inc. | 4,753,782 | $ | 45,683,845 | 9.1 | % | |||||||||||
|
|
|
| |||||||||||||
Diversified Telecommunication Services |
| |||||||||||||||
Lumen Technologies, Inc. | 21,048,851 | 29,889,368 | 6.0 | |||||||||||||
|
|
|
| |||||||||||||
Financial Services | ||||||||||||||||
Jackson Financial, Inc., Class A | 2,723,274 | 104,083,532 | 20.8 | |||||||||||||
Mr. Cooper Group, Inc. | 36,914 | 1,977,114 | 0.4 | |||||||||||||
Payoneer Global, Inc. | 41,807 | 255,859 | 0.1 | |||||||||||||
Radian Group, Inc. | 145,714 | 3,658,878 | 0.7 | |||||||||||||
|
|
|
| |||||||||||||
109,975,383 | ||||||||||||||||
Health Care Providers & Services | ||||||||||||||||
RadNet, Inc. | 200,907 | 5,663,568 | 1.1 | |||||||||||||
|
|
|
| |||||||||||||
Insurance | ||||||||||||||||
Ambac Financial Group, Inc. | 276,512 | 3,334,735 | 0.7 | |||||||||||||
Employers Holdings, Inc. | 17,093 | 682,865 | 0.1 | |||||||||||||
Genworth Financial, Inc., Class A | 1,283,128 | 7,519,130 | 1.5 | |||||||||||||
Horace Mann Educators Corp. | 1,342 | 39,428 | 0.0 | |||||||||||||
Lincoln National Corp. | 3,848,988 | 95,031,514 | 19.0 | |||||||||||||
ProAssurance Corp. | 90,263 | 1,705,068 | 0.4 | |||||||||||||
|
|
|
| |||||||||||||
108,312,740 | ||||||||||||||||
Metals & Mining | ||||||||||||||||
Warrior Met Coal, Inc. | 186,894 | 9,546,546 | 1.9 | |||||||||||||
|
|
|
| |||||||||||||
Office REITs | ||||||||||||||||
Douglas Emmett, Inc. | 3,051,853 | 38,941,644 | 7.8 | |||||||||||||
|
|
|
| |||||||||||||
Oil, Gas & Consumable Fuels | ||||||||||||||||
Green Plains, Inc. | 363,906 | 10,953,571 | 2.2 | |||||||||||||
Par Pacific Holdings, Inc. | 258,181 | 9,279,025 | 1.9 | |||||||||||||
|
|
|
| |||||||||||||
20,232,596 | ||||||||||||||||
Retail REITs | ||||||||||||||||
SITE Centers Corp. | 1,222,370 | 15,071,822 | 3.0 | |||||||||||||
|
|
|
| |||||||||||||
Software | ||||||||||||||||
Adeia, Inc. | 159,809 | 1,706,760 | 0.3 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — HSBC Bank PLC | $ | 500,092,413 | ||||||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 8, 2024.
| ||||||||||||||||
Shares | Value | % of Basket Value | ||||||||||||||
| ||||||||||||||||
Reference Entity — Long |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Banks | ||||||||||||||||
Central Pacific Financial Corp. | 90,255 | $ | 1,505,453 | 0.5 | % | |||||||||||
|
|
|
| |||||||||||||
Capital Markets | ||||||||||||||||
Artisan Partners Asset Management, Inc., Class A | 837,732 | 31,347,932 | 11.2 | |||||||||||||
|
|
|
| |||||||||||||
Communications Equipment |
| |||||||||||||||
Extreme Networks, Inc. | 236,183 | 5,717,990 | 2.0 | |||||||||||||
|
|
|
| |||||||||||||
Financial Services | ||||||||||||||||
Radian Group, Inc. | 7,421,371 | 186,350,626 | 66.2 | |||||||||||||
|
|
|
| |||||||||||||
Health Care Providers & Services |
| |||||||||||||||
RadNet, Inc. | 216,930 | 6,115,257 | 2.2 | |||||||||||||
|
|
|
| |||||||||||||
Insurance | ||||||||||||||||
Ambac Financial Group, Inc. | 434,872 | 5,244,556 | 1.9 | |||||||||||||
|
|
|
| |||||||||||||
Metals & Mining | ||||||||||||||||
Warrior Met Coal, Inc. | 783,245 | 40,008,155 | 14.2 | |||||||||||||
|
|
|
| |||||||||||||
Oil, Gas & Consumable Fuels |
| |||||||||||||||
Par Pacific Holdings, Inc. | 142,153 | 5,108,979 | 1.8 | |||||||||||||
|
|
|
| |||||||||||||
Net Value of Reference Entity — JPMorgan Chase Bank NA | $ | 281,398,948 | ||||||||||||||
|
|
Balances Reported in the Statements of Assets and Liabilities for OTC Swaps
Description | Swap Premiums Paid | Swap Premiums Received | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
OTC Swaps | $ | — | $ | — | $ | — | $ | (45,783,312 | ) |
40 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
| |||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 6,440,537 | $ | — | $ | — | $ | — | $ | 6,440,537 | ||||||||||||||
Swaps — OTC | ||||||||||||||||||||||||||||
Unrealized depreciation on OTC swaps; Swap premiums received | — | — | 45,783,312 | — | — | — | 45,783,312 | |||||||||||||||||||||
|
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|
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| |||||||||||||||
$ | — | $ | — | $ | 52,223,849 | $ | — | $ | — | $ | — | $ | 52,223,849 | |||||||||||||||
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|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 13,714,507 | $ | — | $ | — | $ | — | $ | 13,714,507 | ||||||||||||||
Swaps | — | — | 12,632,405 | — | — | — | 12,632,405 | |||||||||||||||||||||
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| |||||||||||||||
$ | — | $ | — | $ | 26,346,912 | $ | — | $ | — | $ | — | $ | 26,346,912 | |||||||||||||||
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|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (13,537,579 | ) | $ | — | $ | — | $ | — | $ | (13,537,579 | ) | ||||||||||||
Swaps | — | — | (21,936,449 | ) | — | — | — | (21,936,449 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | (35,474,028 | ) | $ | — | $ | — | $ | — | $ | (35,474,028 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $191,001,550 | |||
Total return swaps | ||||
Average notional amount | $1,317,225,801 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments – Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments | ||||||||
Futures contracts | $ | — | $ | 1,499,925 | ||||
Swaps — OTC(a) | — | 45,783,312 | ||||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | $ | — | $ | 47,283,237 | ||||
|
|
|
| |||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | (1,499,925 | ) | |||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | — | $ | 45,783,312 | ||||
|
|
|
|
(a) | Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statements of Assets and Liabilities. |
SCHEDULES OF INVESTMENTS | 41 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P Small-Cap ETF |
The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Non- Cash Collateral Pledged(b) | Cash Collateral Pledged(b) | Net Amount of Derivative Liabilities(c) | |||||||||||||||
Goldman Sachs Bank USA | $ | 16,712,255 | $ | — | $ | — | $ | (16,712,255 | ) | $ | — | |||||||||
HSBC Bank PLC | 22,036,393 | — | — | (22,036,393 | ) | — | ||||||||||||||
JPMorgan Chase Bank N.A. | 7,034,664 | — | — | (7,034,664 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 45,783,312 | $ | — | $ | — | $ | (45,783,312 | ) | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 64,975,060,340 | $ | — | $ | — | $ | 64,975,060,340 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 5,522,854,443 | — | — | 5,522,854,443 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 70,497,914,783 | $ | — | $ | — | $ | 70,497,914,783 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (6,440,537 | ) | $ | (45,783,312 | ) | $ | — | $ | (52,223,849 | ) | |||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
42 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Core S&P U.S. Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.0% | ||||||||
Axon Enterprise, Inc.(a) | 45,464 | $ | 9,046,882 | |||||
BWX Technologies, Inc. | 59,237 | 4,441,590 | ||||||
Curtiss-Wright Corp. | 24,806 | 4,852,798 | ||||||
General Dynamics Corp. | 77,057 | 17,027,285 | ||||||
L3Harris Technologies, Inc. | 60,894 | 10,602,863 | ||||||
Lockheed Martin Corp. | 102,179 | 41,787,124 | ||||||
Northrop Grumman Corp. | 65,663 | 28,904,196 | ||||||
TransDigm Group, Inc.(a) | 16,717 | 14,094,604 | ||||||
|
| |||||||
130,757,342 | ||||||||
Air Freight & Logistics — 0.1% | ||||||||
CH Robinson Worldwide, Inc. | 41,164 | 3,545,455 | ||||||
Expeditors International of Washington, | 95,318 | 10,926,303 | ||||||
|
| |||||||
14,471,758 | ||||||||
Automobile Components — 0.1% | ||||||||
Autoliv, Inc. | 16,125 | 1,555,740 | ||||||
Fox Factory Holding Corp.(a) | 27,441 | 2,718,854 | ||||||
Gentex Corp. | 70,036 | 2,278,972 | ||||||
Visteon Corp.(a) | 18,172 | 2,509,008 | ||||||
|
| |||||||
9,062,574 | ||||||||
Automobiles — 3.3% | ||||||||
Harley-Davidson, Inc. | 54,210 | 1,792,183 | ||||||
Tesla, Inc.(a) | 1,773,089 | 443,662,329 | ||||||
|
| |||||||
445,454,512 | ||||||||
Banks — 0.1% | ||||||||
Columbia Banking System, Inc. | 70,118 | 1,423,395 | ||||||
Commerce Bancshares, Inc. | 50,286 | 2,412,722 | ||||||
Cullen/Frost Bankers, Inc. | 27,940 | 2,548,408 | ||||||
East West Bancorp, Inc. | 46,688 | 2,460,925 | ||||||
First Financial Bankshares, Inc. | 44,732 | 1,123,668 | ||||||
First Horizon Corp. | 229,145 | 2,525,178 | ||||||
Glacier Bancorp, Inc. | 38,901 | 1,108,679 | ||||||
Hancock Whitney Corp. | 28,403 | 1,050,627 | ||||||
International Bancshares Corp. | 20,807 | 901,775 | ||||||
SouthState Corp. | 27,998 | 1,885,945 | ||||||
United Bankshares, Inc. | 40,760 | 1,124,568 | ||||||
|
| |||||||
18,565,890 | ||||||||
Beverages — 2.2% | ||||||||
Boston Beer Co., Inc. (The), Class A, NVS(a) | 4,325 | 1,684,717 | ||||||
Brown-Forman Corp., Class B, NVS | 65,069 | 3,753,831 | ||||||
Celsius Holdings, Inc.(a)(b) | 31,706 | 5,440,749 | ||||||
Coca-Cola Co. (The) | 1,624,355 | 90,931,393 | ||||||
Constellation Brands, Inc., Class A | 58,224 | 14,633,438 | ||||||
Keurig Dr Pepper, Inc. | 324,138 | 10,233,037 | ||||||
Monster Beverage Corp.(a) | 476,803 | 25,246,719 | ||||||
PepsiCo, Inc. | 883,908 | 149,769,371 | ||||||
|
| |||||||
301,693,255 | ||||||||
Biotechnology — 3.7% | ||||||||
AbbVie, Inc. | 1,133,343 | 168,936,108 | ||||||
Amgen, Inc. | 343,461 | 92,308,578 | ||||||
Arrowhead Pharmaceuticals, Inc.(a) | 33,067 | 888,510 | ||||||
Biogen, Inc.(a) | 43,705 | 11,232,622 | ||||||
Exelixis, Inc.(a) | 202,713 | 4,429,279 | ||||||
Gilead Sciences, Inc. | 800,069 | 59,957,171 | ||||||
Halozyme Therapeutics, Inc.(a) | 84,301 | 3,220,298 | ||||||
Incyte Corp.(a) | 118,851 | 6,866,022 | ||||||
Moderna, Inc.(a) | 212,356 | 21,934,251 | ||||||
Neurocrine Biosciences, Inc.(a) | 62,397 | 7,019,663 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 68,538 | 56,404,033 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
United Therapeutics Corp.(a) | 30,351 | $ | 6,855,381 | |||||
Vertex Pharmaceuticals, Inc.(a) | 165,722 | 57,628,168 | ||||||
|
| |||||||
497,680,084 | ||||||||
Broadline Retail — 2.6% | ||||||||
Amazon.com, Inc.(a) | 2,681,825 | 340,913,594 | ||||||
Etsy, Inc.(a)(b) | 45,955 | 2,967,774 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.(a) | 18,494 | 1,427,367 | ||||||
|
| |||||||
345,308,735 | ||||||||
Building Products — 0.4% | ||||||||
Advanced Drainage Systems, Inc.(b) | 34,358 | 3,910,971 | ||||||
Builders FirstSource, Inc.(a) | 80,563 | 10,029,288 | ||||||
Carlisle Cos., Inc. | 32,158 | 8,337,283 | ||||||
Lennox International, Inc. | 12,641 | 4,733,296 | ||||||
Masco Corp. | 103,802 | 5,548,217 | ||||||
Owens Corning | 31,515 | 4,298,961 | ||||||
Simpson Manufacturing Co., Inc. | 27,649 | 4,142,097 | ||||||
Trex Co., Inc.(a)(b) | 37,773 | 2,327,950 | ||||||
UFP Industries, Inc. | 39,971 | 4,093,030 | ||||||
|
| |||||||
47,421,093 | ||||||||
Capital Markets — 1.4% | ||||||||
Affiliated Managers Group, Inc. | 15,239 | 1,986,251 | ||||||
Ameriprise Financial, Inc. | 65,720 | 21,666,570 | ||||||
Blackstone, Inc., Class A, NVS | 455,733 | 48,827,234 | ||||||
Cboe Global Markets, Inc. | 45,580 | 7,120,052 | ||||||
Charles Schwab Corp. (The) | 562,908 | 30,903,649 | ||||||
Evercore, Inc., Class A | 11,606 | 1,600,235 | ||||||
FactSet Research Systems, Inc. | 14,807 | 6,474,509 | ||||||
Federated Hermes, Inc., Class B | 37,771 | 1,279,304 | ||||||
Interactive Brokers Group, Inc., Class A | 37,354 | 3,233,362 | ||||||
Jefferies Financial Group, Inc. | 113,884 | 4,171,571 | ||||||
MarketAxess Holdings, Inc. | 11,944 | 2,551,716 | ||||||
Moody’s Corp. | 47,675 | 15,073,405 | ||||||
Morningstar, Inc. | 16,769 | 3,927,970 | ||||||
MSCI, Inc., Class A | 29,043 | 14,901,382 | ||||||
Nasdaq, Inc. | 140,807 | 6,841,812 | ||||||
Raymond James Financial, Inc. | 121,130 | 12,165,086 | ||||||
SEI Investments Co. | 64,121 | 3,862,008 | ||||||
|
| |||||||
186,586,116 | ||||||||
Chemicals — 1.4% | ||||||||
Air Products & Chemicals, Inc. | 142,642 | 40,424,743 | ||||||
Albemarle Corp. | 75,137 | 12,776,296 | ||||||
Ashland, Inc. | 21,652 | 1,768,535 | ||||||
Axalta Coating Systems Ltd.(a) | 64,416 | 1,732,790 | ||||||
Cabot Corp. | 36,405 | 2,521,774 | ||||||
CF Industries Holdings, Inc. | 124,342 | 10,661,083 | ||||||
Chemours Co. (The) | 55,685 | 1,561,964 | ||||||
Corteva, Inc. | 315,584 | 16,145,278 | ||||||
FMC Corp. | 79,249 | 5,307,306 | ||||||
Linde PLC | 191,119 | 71,163,160 | ||||||
Mosaic Co. (The) | 215,122 | 7,658,343 | ||||||
NewMarket Corp. | 2,393 | 1,088,911 | ||||||
Olin Corp. | 81,095 | 4,053,128 | ||||||
RPM International, Inc. | 82,240 | 7,797,174 | ||||||
Westlake Corp.(b) | 20,563 | 2,563,589 | ||||||
|
| |||||||
187,224,074 | ||||||||
Commercial Services & Supplies — 0.7% | ||||||||
Brink’s Co. (The) | 14,126 | 1,026,112 | ||||||
Cintas Corp. | 32,769 | 15,762,217 | ||||||
Clean Harbors, Inc.(a) | 32,658 | 5,465,643 | ||||||
Copart, Inc.(a) | 556,851 | 23,994,709 |
SCHEDULES OF INVESTMENTS | 43 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Commercial Services & Supplies (continued) | ||||||||
MSA Safety, Inc. | 12,798 | $ | 2,017,605 | |||||
Republic Services, Inc. | 72,325 | 10,307,036 | ||||||
Rollins, Inc. | 180,924 | 6,753,893 | ||||||
Tetra Tech, Inc. | 19,631 | 2,984,501 | ||||||
Waste Management, Inc. | 139,273 | 21,230,776 | ||||||
|
| |||||||
89,542,492 | ||||||||
Communications Equipment — 0.4% | ||||||||
Arista Networks, Inc.(a) | 160,999 | 29,612,546 | ||||||
Calix, Inc.(a) | 36,925 | 1,692,642 | ||||||
Motorola Solutions, Inc. | 59,151 | 16,103,268 | ||||||
|
| |||||||
47,408,456 | ||||||||
Construction & Engineering — 0.2% | ||||||||
AECOM | 48,771 | 4,049,944 | ||||||
EMCOR Group, Inc. | 30,202 | 6,354,199 | ||||||
Quanta Services, Inc. | 93,341 | 17,461,301 | ||||||
Valmont Industries, Inc. | 13,286 | 3,191,430 | ||||||
|
| |||||||
31,056,874 | ||||||||
Construction Materials — 0.1% | ||||||||
Eagle Materials, Inc. | 23,079 | 3,843,115 | ||||||
Vulcan Materials Co. | 50,167 | 10,134,737 | ||||||
|
| |||||||
13,977,852 | ||||||||
Consumer Finance — 0.3% | ||||||||
Ally Financial, Inc. | 34,379 | 917,232 | ||||||
American Express Co. | 182,839 | 27,277,750 | ||||||
Discover Financial Services | 93,422 | 8,093,148 | ||||||
FirstCash Holdings, Inc. | 24,309 | 2,440,138 | ||||||
SLM Corp. | 141,289 | 1,924,356 | ||||||
|
| |||||||
40,652,624 | ||||||||
Consumer Staples Distribution & Retail — 1.1% | ||||||||
BJ’s Wholesale Club Holdings, Inc.(a)(b) | 49,845 | 3,557,438 | ||||||
Casey’s General Stores, Inc. | 24,151 | 6,557,479 | ||||||
Costco Wholesale Corp. | 187,800 | 106,099,488 | ||||||
Dollar General Corp. | 140,680 | 14,883,944 | ||||||
Dollar Tree, Inc.(a) | 133,949 | 14,258,871 | ||||||
Performance Food Group Co.(a) | 45,323 | 2,667,712 | ||||||
Sprouts Farmers Market, Inc.(a)(b) | 36,977 | 1,582,616 | ||||||
U.S. Foods Holding Corp.(a) | 39,900 | 1,584,030 | ||||||
|
| |||||||
151,191,578 | ||||||||
Containers & Packaging — 0.1% | ||||||||
AptarGroup, Inc. | 19,899 | 2,488,171 | ||||||
Berry Global Group, Inc. | 33,973 | 2,103,268 | ||||||
Crown Holdings, Inc. | 30,346 | 2,685,014 | ||||||
Graphic Packaging Holding Co. | 141,256 | 3,147,184 | ||||||
Silgan Holdings, Inc. | 54,117 | 2,332,984 | ||||||
Sonoco Products Co. | 32,145 | 1,747,081 | ||||||
|
| |||||||
14,503,702 | ||||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 64,723 | 9,344,707 | ||||||
Pool Corp. | 16,009 | 5,700,805 | ||||||
|
| |||||||
15,045,512 | ||||||||
Diversified Consumer Services — 0.1% | ||||||||
Grand Canyon Education, Inc.(a) | 18,678 | 2,183,085 | ||||||
H&R Block, Inc. | 97,537 | 4,199,943 | ||||||
Service Corp. International | 97,676 | 5,581,206 | ||||||
|
| |||||||
11,964,234 | ||||||||
Diversified Telecommunication Services — 0.0% | ||||||||
Iridium Communications, Inc. | 81,416 | 3,703,614 | ||||||
|
|
Security | Shares | Value | ||||||
Electric Utilities — 0.2% | ||||||||
IDACORP, Inc. | 17,328 | $ | 1,622,767 | |||||
NRG Energy, Inc. | 70,444 | 2,713,503 | ||||||
OGE Energy Corp. | 129,664 | 4,321,701 | ||||||
PG&E Corp.(a) | 1,339,790 | 21,610,813 | ||||||
PNM Resources, Inc. | 34,418 | 1,535,387 | ||||||
|
| |||||||
31,804,171 | ||||||||
Electrical Equipment — 0.2% | ||||||||
Acuity Brands, Inc. | 10,478 | 1,784,508 | ||||||
AMETEK, Inc.(b) | 74,249 | 10,971,032 | ||||||
Hubbell, Inc. | 34,326 | 10,758,112 | ||||||
nVent Electric PLC | 105,409 | 5,585,623 | ||||||
Sensata Technologies Holding PLC | 38,321 | 1,449,300 | ||||||
Vicor Corp.(a)(b) | 6,215 | 366,002 | ||||||
|
| |||||||
30,914,577 | ||||||||
Electronic Equipment, Instruments & Components — 0.5% | ||||||||
Amphenol Corp., Class A | 382,985 | 32,166,910 | ||||||
Belden, Inc. | 27,713 | 2,675,690 | ||||||
CDW Corp. | 54,415 | 10,978,771 | ||||||
Cognex Corp. | 58,391 | 2,478,114 | ||||||
Crane NXT Co. | 15,411 | 856,389 | ||||||
Keysight Technologies, Inc.(a) | 61,644 | 8,156,118 | ||||||
Littelfuse, Inc. | 9,996 | 2,472,211 | ||||||
National Instruments Corp. | 48,328 | 2,881,315 | ||||||
Novanta, Inc.(a) | 23,114 | 3,315,472 | ||||||
|
| |||||||
65,980,990 | ||||||||
Energy Equipment & Services — 0.3% | ||||||||
ChampionX Corp. | 125,433 | 4,467,923 | ||||||
NOV, Inc. | 254,161 | 5,311,965 | ||||||
Schlumberger NV | 483,104 | 28,164,963 | ||||||
Valaris Ltd.(a) | 40,990 | 3,073,430 | ||||||
Weatherford International PLC(a) | 46,435 | 4,194,474 | ||||||
|
| |||||||
45,212,755 | ||||||||
Entertainment — 0.3% | ||||||||
Activision Blizzard, Inc. | 270,459 | 25,323,076 | ||||||
Electronic Arts, Inc. | 108,026 | 13,006,330 | ||||||
TKO Group Holdings, Inc., Class A | 33,765 | 2,838,286 | ||||||
|
| |||||||
41,167,692 | ||||||||
Financial Services — 3.7% | ||||||||
Euronet Worldwide, Inc.(a) | 14,937 | 1,185,699 | ||||||
Fiserv, Inc.(a) | 269,912 | 30,489,260 | ||||||
FleetCor Technologies, Inc.(a) | 25,275 | 6,453,719 | ||||||
Jack Henry & Associates, Inc. | 47,031 | 7,108,265 | ||||||
Mastercard, Inc., Class A | 534,241 | 211,511,354 | ||||||
Visa, Inc., Class A | 1,031,724 | 237,306,837 | ||||||
WEX, Inc.(a) | 27,560 | 5,183,760 | ||||||
|
| |||||||
499,238,894 | ||||||||
Food Products — 0.9% | ||||||||
Archer-Daniels-Midland Co. | 169,289 | 12,767,776 | ||||||
Bunge Ltd. | 39,871 | 4,316,036 | ||||||
Campbell Soup Co. | 73,500 | 3,019,380 | ||||||
Darling Ingredients, Inc.(a) | 101,496 | 5,298,091 | ||||||
Flowers Foods, Inc. | 78,342 | 1,737,626 | ||||||
General Mills, Inc. | 256,414 | 16,407,932 | ||||||
Hershey Co. (The) | 95,919 | 19,191,473 | ||||||
Hormel Foods Corp. | 134,883 | 5,129,600 | ||||||
Kellanova | 91,068 | 5,419,457 | ||||||
Lamb Weston Holdings, Inc. | 94,371 | 8,725,543 | ||||||
Lancaster Colony Corp. | 12,886 | 2,126,577 |
44 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
McCormick & Co., Inc., NVS | 82,672 | $ | 6,253,310 | |||||
Mondelez International, Inc., Class A | 471,491 | 32,721,475 | ||||||
|
| |||||||
123,114,276 | ||||||||
Gas Utilities — 0.1% | ||||||||
Atmos Energy Corp. | 57,310 | 6,070,848 | ||||||
National Fuel Gas Co. | 41,533 | 2,155,978 | ||||||
New Jersey Resources Corp. | 40,443 | 1,643,199 | ||||||
ONE Gas, Inc. | 34,970 | 2,387,752 | ||||||
Spire, Inc. | 16,652 | 942,170 | ||||||
|
| |||||||
13,199,947 | ||||||||
Ground Transportation — 0.8% | ||||||||
Avis Budget Group, Inc.(a) | 12,717 | 2,285,118 | ||||||
CSX Corp. | 620,597 | 19,083,358 | ||||||
JB Hunt Transport Services, Inc. | 52,624 | 9,920,677 | ||||||
Knight-Swift Transportation Holdings, Inc. | 51,954 | 2,605,493 | ||||||
Landstar System, Inc. | 23,261 | 4,115,801 | ||||||
Old Dominion Freight Line, Inc.(b) | 57,393 | 23,481,772 | ||||||
Saia, Inc.(a) | 9,763 | 3,892,020 | ||||||
Union Pacific Corp. | 195,667 | 39,843,671 | ||||||
|
| |||||||
105,227,910 | ||||||||
Health Care Equipment & Supplies — 1.5% | ||||||||
Abbott Laboratories | 579,424 | 56,117,214 | ||||||
Boston Scientific Corp.(a) | 497,569 | 26,271,643 | ||||||
Dexcom, Inc.(a) | 248,409 | 23,176,560 | ||||||
Globus Medical, Inc., Class A(a) | 74,650 | 3,706,373 | ||||||
Haemonetics Corp.(a) | 32,779 | 2,936,343 | ||||||
Hologic, Inc.(a) | 157,853 | 10,954,998 | ||||||
IDEXX Laboratories, Inc.(a) | 26,013 | 11,374,705 | ||||||
Inari Medical, Inc.(a) | 33,840 | 2,213,136 | ||||||
Insulet Corp.(a) | 45,004 | 7,177,688 | ||||||
Intuitive Surgical, Inc.(a) | 110,474 | 32,290,445 | ||||||
Lantheus Holdings, Inc.(a) | 44,622 | 3,100,337 | ||||||
Masimo Corp.(a) | 18,002 | 1,578,415 | ||||||
Penumbra, Inc.(a) | 15,501 | 3,749,847 | ||||||
QuidelOrtho Corp.(a)(b) | 17,304 | 1,263,884 | ||||||
ResMed, Inc. | 51,298 | 7,585,435 | ||||||
Shockwave Medical, Inc.(a) | 23,921 | 4,762,671 | ||||||
|
| |||||||
198,259,694 | ||||||||
Health Care Providers & Services — 3.6% | ||||||||
Acadia Healthcare Co., Inc.(a) | 34,135 | 2,400,032 | ||||||
Chemed Corp. | 6,528 | 3,392,602 | ||||||
Cigna Group (The) | 93,419 | 26,724,373 | ||||||
Elevance Health, Inc. | 151,309 | 65,882,965 | ||||||
Encompass Health Corp. | 29,657 | 1,991,764 | ||||||
HCA Healthcare, Inc. | 70,047 | 17,230,161 | ||||||
HealthEquity, Inc.(a) | 54,748 | 3,999,341 | ||||||
Humana, Inc. | 50,828 | 24,728,839 | ||||||
McKesson Corp. | 39,986 | 17,387,912 | ||||||
Molina Healthcare, Inc.(a) | 37,364 | 12,251,282 | ||||||
Option Care Health, Inc.(a) | 115,918 | 3,749,947 | ||||||
Progyny, Inc.(a)(b) | 18,052 | 614,129 | ||||||
Quest Diagnostics, Inc. | 47,659 | 5,807,726 | ||||||
UnitedHealth Group, Inc. | 594,784 | 299,884,145 | ||||||
|
| |||||||
486,045,218 | ||||||||
Health Care REITs — 0.0% | ||||||||
Omega Healthcare Investors, Inc. | 74,223 | 2,461,235 | ||||||
|
| |||||||
Health Care Technology — 0.0% | ||||||||
Doximity, Inc., Class A(a)(b) | 45,364 | 962,624 | ||||||
|
|
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure — 1.7% | ||||||||
Airbnb, Inc., Class A(a)(b) | 109,907 | $ | 15,080,340 | |||||
Aramark | 69,257 | 2,403,218 | ||||||
Boyd Gaming Corp. | 26,257 | 1,597,213 | ||||||
Chipotle Mexican Grill, Inc.(a) | 17,698 | 32,419,727 | ||||||
Choice Hotels International, Inc. | 9,489 | 1,162,497 | ||||||
Churchill Downs, Inc. | 42,734 | 4,958,853 | ||||||
Domino’s Pizza, Inc. | 10,242 | 3,879,567 | ||||||
Hilton Grand Vacations, Inc.(a) | 22,865 | 930,606 | ||||||
Hilton Worldwide Holdings, Inc. | 80,905 | 12,150,313 | ||||||
Light & Wonder, Inc., Class A(a) | 28,036 | 1,999,808 | ||||||
Marriott International, Inc., Class A | 82,333 | 16,183,375 | ||||||
McDonald’s Corp. | 290,122 | 76,429,740 | ||||||
Planet Fitness, Inc., Class A(a) | 37,416 | 1,840,119 | ||||||
Starbucks Corp. | 375,005 | 34,226,706 | ||||||
Texas Roadhouse, Inc. | 43,329 | 4,163,917 | ||||||
Vail Resorts, Inc. | 12,932 | 2,869,482 | ||||||
Wendy’s Co. (The) | 110,404 | 2,253,346 | ||||||
Wingstop, Inc. | 19,417 | 3,491,953 | ||||||
Wyndham Hotels & Resorts, Inc. | 27,949 | 1,943,573 | ||||||
Yum! Brands, Inc. | 114,728 | 14,334,116 | ||||||
|
| |||||||
234,318,469 | ||||||||
Household Durables — 0.1% | ||||||||
DR Horton, Inc. | 98,113 | 10,544,204 | ||||||
Tempur Sealy International, Inc. | 110,889 | 4,805,930 | ||||||
TopBuild Corp.(a) | 11,022 | 2,773,135 | ||||||
|
| |||||||
18,123,269 | ||||||||
Household Products — 1.2% | ||||||||
Clorox Co. (The) | 35,949 | 4,711,476 | ||||||
Colgate-Palmolive Co. | 291,136 | 20,702,681 | ||||||
Kimberly-Clark Corp. | 104,792 | 12,664,113 | ||||||
Procter & Gamble Co. (The) | 832,500 | 121,428,450 | ||||||
|
| |||||||
159,506,720 | ||||||||
Independent Power and Renewable Electricity Producers — 0.1% | ||||||||
AES Corp. (The) | 251,001 | 3,815,215 | ||||||
Ormat Technologies, Inc.(b) | 20,082 | 1,404,134 | ||||||
Vistra Corp. | 144,724 | 4,801,942 | ||||||
|
| |||||||
10,021,291 | ||||||||
Industrial REITs — 0.1% | ||||||||
EastGroup Properties, Inc. | 15,525 | 2,585,378 | ||||||
First Industrial Realty Trust, Inc. | 43,704 | 2,079,873 | ||||||
Rexford Industrial Realty, Inc. | 74,190 | 3,661,277 | ||||||
STAG Industrial, Inc. | 52,265 | 1,803,665 | ||||||
|
| |||||||
10,130,193 | ||||||||
Insurance — 2.0% | ||||||||
American Financial Group, Inc. | 19,127 | 2,135,912 | ||||||
Aon PLC, Class A | 86,269 | 27,970,135 | ||||||
Arch Capital Group Ltd.(a) | 241,485 | 19,248,769 | ||||||
Arthur J. Gallagher & Co. | 88,898 | 20,262,521 | ||||||
Brown & Brown, Inc. | 90,005 | 6,285,949 | ||||||
Chubb Ltd. | 150,232 | 31,275,298 | ||||||
Erie Indemnity Co., Class A, NVS | 16,177 | 4,752,641 | ||||||
Everest Group Ltd. | 16,159 | 6,005,816 | ||||||
Fidelity National Financial, Inc., Class A | 20,391 | 842,148 | ||||||
Globe Life, Inc. | 39,229 | 4,265,369 | ||||||
Hanover Insurance Group, Inc. (The) | 13,592 | 1,508,440 | ||||||
Kinsale Capital Group, Inc. | 13,972 | 5,786,224 | ||||||
Marsh & McLennan Cos., Inc. | 202,990 | 38,628,997 | ||||||
Primerica, Inc. | 16,157 | 3,134,620 | ||||||
Principal Financial Group, Inc. | 87,102 | 6,277,441 | ||||||
Progressive Corp. (The) | 375,846 | 52,355,348 |
SCHEDULES OF INVESTMENTS | 45 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
RenaissanceRe Holdings Ltd. | 18,129 | $ | 3,588,092 | |||||
RLI Corp. | 26,146 | 3,552,980 | ||||||
Selective Insurance Group, Inc. | 39,016 | 4,025,281 | ||||||
Travelers Cos., Inc. (The) | 79,665 | 13,010,091 | ||||||
W R Berkley Corp. | 129,618 | 8,229,447 | ||||||
|
| |||||||
263,141,519 | ||||||||
Interactive Media & Services — 6.9% | ||||||||
Alphabet, Inc., Class A(a) | 3,809,599 | 498,524,125 | ||||||
Alphabet, Inc., Class C, NVS(a) | 3,240,611 | 427,274,560 | ||||||
ZoomInfo Technologies, Inc., Class A(a) | 102,241 | 1,676,753 | ||||||
|
| |||||||
927,475,438 | ||||||||
IT Services — 0.7% | ||||||||
Accenture PLC, Class A | 198,467 | 60,951,200 | ||||||
EPAM Systems, Inc.(a) | 25,398 | 6,494,015 | ||||||
Gartner, Inc.(a) | 50,798 | 17,454,701 | ||||||
GoDaddy, Inc., Class A(a) | 94,597 | 7,045,585 | ||||||
VeriSign, Inc.(a) | 27,997 | 5,670,232 | ||||||
|
| |||||||
97,615,733 | ||||||||
Leisure Products — 0.0% | ||||||||
Brunswick Corp. | 26,096 | 2,061,584 | ||||||
Polaris, Inc. | 17,754 | 1,848,901 | ||||||
YETI Holdings, Inc.(a)(b) | 30,836 | 1,486,912 | ||||||
|
| |||||||
5,397,397 | ||||||||
Life Sciences Tools & Services — 2.2% | ||||||||
Agilent Technologies, Inc. | 113,984 | 12,745,691 | ||||||
Bio-Techne Corp. | 49,250 | 3,352,447 | ||||||
Bruker Corp. | 36,214 | 2,256,132 | ||||||
Danaher Corp. | 421,948 | 104,685,299 | ||||||
IQVIA Holdings, Inc.(a)(b) | 56,644 | 11,144,707 | ||||||
Medpace Holdings, Inc.(a) | 14,960 | 3,622,265 | ||||||
Mettler-Toledo International, Inc.(a)(b) | 9,152 | 10,141,057 | ||||||
Repligen Corp.(a) | 33,504 | 5,327,471 | ||||||
Thermo Fisher Scientific, Inc. | 247,818 | 125,438,037 | ||||||
Waters Corp.(a) | 38,002 | 10,420,528 | ||||||
|
| |||||||
289,133,634 | ||||||||
Machinery — 1.5% | ||||||||
AGCO Corp. | 20,801 | 2,460,342 | ||||||
Caterpillar, Inc. | 196,538 | 53,654,874 | ||||||
Chart Industries, Inc.(a)(b) | 12,185 | 2,060,727 | ||||||
Crane Co. | 15,411 | 1,369,113 | ||||||
Cummins, Inc. | 46,450 | 10,611,967 | ||||||
Deere & Co. | 175,082 | 66,072,445 | ||||||
Donaldson Co., Inc. | 50,811 | 3,030,368 | ||||||
Graco, Inc. | 71,027 | 5,176,448 | ||||||
IDEX Corp. | 27,877 | 5,798,974 | ||||||
Illinois Tool Works, Inc. | 89,863 | 20,696,348 | ||||||
ITT, Inc. | 24,711 | 2,419,454 | ||||||
Lincoln Electric Holdings, Inc. | 36,633 | 6,659,513 | ||||||
Middleby Corp. (The)(a)(b) | 16,795 | 2,149,760 | ||||||
RBC Bearings, Inc.(a) | 18,736 | 4,386,660 | ||||||
Snap-on, Inc. | 19,083 | 4,867,310 | ||||||
Timken Co. (The) | 20,951 | 1,539,689 | ||||||
Toro Co. (The) | 67,484 | 5,607,920 | ||||||
Watts Water Technologies, Inc., Class A | 9,201 | 1,590,117 | ||||||
|
| |||||||
200,152,029 | ||||||||
Media — 0.0% | ||||||||
New York Times Co. (The), Class A | 53,425 | 2,201,110 | ||||||
Nexstar Media Group, Inc., Class A | 21,490 | 3,081,021 | ||||||
|
| |||||||
5,282,131 |
Security | Shares | Value | ||||||
Metals & Mining — 0.7% | ||||||||
Commercial Metals Co. | 42,514 | $ | 2,100,617 | |||||
Freeport-McMoRan, Inc. | 920,236 | 34,315,600 | ||||||
MP Materials Corp., Class A(a)(b) | 92,737 | 1,771,277 | ||||||
Nucor Corp. | 159,412 | 24,924,066 | ||||||
Reliance Steel & Aluminum Co. | 37,506 | 9,835,198 | ||||||
Royal Gold, Inc. | 42,531 | 4,522,321 | ||||||
Steel Dynamics, Inc. | 100,327 | 10,757,061 | ||||||
Worthington Industries, Inc. | 9,580 | 592,236 | ||||||
|
| |||||||
88,818,376 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.0% | ||||||||
Annaly Capital Management, Inc. | 319,909 | 6,017,488 | ||||||
|
| |||||||
Multi-Utilities — 0.2% | ||||||||
Black Hills Corp. | 21,917 | 1,108,781 | ||||||
Sempra | 243,325 | 16,553,400 | ||||||
WEC Energy Group, Inc. | 106,046 | 8,542,005 | ||||||
|
| |||||||
26,204,186 | ||||||||
Office REITs — 0.0% | ||||||||
COPT Defense Properties | 37,793 | 900,607 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 7.0% | ||||||||
Antero Midstream Corp. | 217,263 | 2,602,811 | ||||||
Antero Resources Corp.(a) | 178,888 | 4,540,177 | ||||||
APA Corp. | 196,554 | 8,078,369 | ||||||
Chevron Corp. | 1,139,259 | 192,101,853 | ||||||
Chord Energy Corp. | 20,496 | 3,321,787 | ||||||
Civitas Resources, Inc. | 54,768 | 4,429,088 | ||||||
CNX Resources Corp.(a)(b) | 102,977 | 2,325,221 | ||||||
ConocoPhillips | 768,912 | 92,115,658 | ||||||
Coterra Energy, Inc. | 485,688 | 13,137,860 | ||||||
Devon Energy Corp. | 409,989 | 19,556,475 | ||||||
Diamondback Energy, Inc. | 115,243 | 17,848,836 | ||||||
DT Midstream, Inc. | 62,648 | 3,315,332 | ||||||
EOG Resources, Inc. | 373,872 | 47,392,015 | ||||||
EQT Corp. | 233,761 | 9,486,021 | ||||||
Equitrans Midstream Corp. | 128,761 | 1,206,491 | ||||||
Exxon Mobil Corp. | 2,570,464 | 302,235,157 | ||||||
Hess Corp. | 177,079 | 27,093,087 | ||||||
HF Sinclair Corp. | 41,254 | 2,348,590 | ||||||
Marathon Oil Corp. | 390,322 | 10,441,113 | ||||||
Marathon Petroleum Corp. | 122,811 | 18,586,217 | ||||||
Matador Resources Co. | 70,479 | 4,192,091 | ||||||
Murphy Oil Corp. | 94,732 | 4,296,096 | ||||||
Occidental Petroleum Corp. | 427,580 | 27,741,390 | ||||||
ONEOK, Inc. | 373,184 | 23,671,061 | ||||||
Ovintiv, Inc. | 125,919 | 5,989,967 | ||||||
PBF Energy, Inc., Class A | 70,537 | 3,775,846 | ||||||
Permian Resources Corp., Class A | 119,895 | 1,673,734 | ||||||
Pioneer Natural Resources Co. | 149,636 | 34,348,944 | ||||||
Range Resources Corp. | 156,582 | 5,074,823 | ||||||
Southwestern Energy Co.(a)(b) | 715,092 | 4,612,343 | ||||||
Targa Resources Corp. | 144,167 | 12,357,995 | ||||||
Williams Cos., Inc. (The) | 779,888 | 26,274,427 | ||||||
|
| |||||||
936,170,875 | ||||||||
Paper & Forest Products — 0.0% | ||||||||
Louisiana-Pacific Corp. | 41,367 | 2,286,354 | ||||||
|
| |||||||
Personal Care Products — 0.2% | ||||||||
BellRing Brands, Inc.(a) | 35,955 | 1,482,425 | ||||||
Kenvue, Inc. | 1,106,603 | 22,220,588 | ||||||
|
| |||||||
23,703,013 |
46 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Pharmaceuticals — 5.9% | ||||||||
Bristol-Myers Squibb Co. | 1,341,419 | $ | 77,855,959 | |||||
Eli Lilly & Co. | 512,019 | 275,020,766 | ||||||
Jazz Pharmaceuticals PLC(a) | 40,675 | 5,264,972 | ||||||
Johnson & Johnson | 958,640 | 149,308,180 | ||||||
Merck & Co., Inc. | 1,629,351 | 167,741,685 | ||||||
Pfizer, Inc. | 3,625,290 | 120,250,869 | ||||||
|
| |||||||
795,442,431 | ||||||||
Professional Services — 1.1% | ||||||||
Automatic Data Processing, Inc. | 264,537 | 63,642,311 | ||||||
Broadridge Financial Solutions, Inc. | 36,624 | �� | 6,557,527 | |||||
CACI International, Inc., Class A(a)(b) | 9,259 | 2,906,678 | ||||||
Concentrix Corp. | 27,505 | 2,203,426 | ||||||
Equifax, Inc. | 39,034 | 7,150,248 | ||||||
ExlService Holdings, Inc.(a) | 107,284 | 3,008,243 | ||||||
Exponent, Inc. | 22,718 | 1,944,661 | ||||||
FTI Consulting, Inc.(a) | 21,582 | 3,850,445 | ||||||
Genpact Ltd. | 62,353 | 2,257,179 | ||||||
Insperity, Inc. | 23,112 | 2,255,731 | ||||||
KBR, Inc. | 86,548 | 5,101,139 | ||||||
Leidos Holdings, Inc. | 57,459 | 5,295,421 | ||||||
Paychex, Inc. | 117,384 | 13,537,897 | ||||||
Paycom Software, Inc. | 31,353 | 8,128,892 | ||||||
Paylocity Holding Corp.(a) | 27,754 | 5,042,902 | ||||||
Science Applications International Corp. | 22,585 | 2,383,621 | ||||||
Verisk Analytics, Inc. | 43,137 | 10,190,685 | ||||||
|
| |||||||
145,457,006 | ||||||||
Real Estate Management & Development — 0.2% | ||||||||
CoStar Group, Inc.(a) | 261,418 | 20,100,430 | ||||||
|
| |||||||
Retail REITs — 0.1% | ||||||||
Agree Realty Corp. | 41,807 | 2,309,419 | ||||||
Brixmor Property Group, Inc. | 95,367 | 1,981,726 | ||||||
NNN REIT, Inc. | 64,166 | 2,267,626 | ||||||
|
| |||||||
6,558,771 | ||||||||
Semiconductors & Semiconductor Equipment — 10.0% | ||||||||
Advanced Micro Devices, Inc.(a) | 560,212 | 57,600,998 | ||||||
Allegro MicroSystems, Inc.(a) | 16,430 | 524,774 | ||||||
Amkor Technology, Inc. | 65,053 | 1,470,198 | ||||||
Analog Devices, Inc. | 151,110 | 26,457,850 | ||||||
Applied Materials, Inc. | 539,204 | 74,652,794 | ||||||
Broadcom, Inc. | 158,992 | 132,055,575 | ||||||
Cirrus Logic, Inc.(a) | 35,701 | 2,640,446 | ||||||
Enphase Energy, Inc.(a)(b) | 87,835 | 10,553,375 | ||||||
First Solar, Inc.(a) | 68,835 | 11,123,048 | ||||||
KLA Corp. | 87,788 | 40,264,844 | ||||||
Lam Research Corp. | 85,590 | 53,645,244 | ||||||
Lattice Semiconductor Corp.(a) | 88,859 | 7,635,654 | ||||||
MACOM Technology Solutions Holdings, | 33,147 | 2,704,132 | ||||||
Microchip Technology, Inc. | 171,891 | 13,416,093 | ||||||
Monolithic Power Systems, Inc. | 30,793 | 14,226,366 | ||||||
NVIDIA Corp. | 1,585,997 | 689,892,835 | ||||||
NXP Semiconductors NV | 97,344 | 19,461,012 | ||||||
ON Semiconductor Corp.(a)(b) | 276,647 | 25,714,339 | ||||||
Power Integrations, Inc. | 37,091 | 2,830,414 | ||||||
QUALCOMM, Inc. | 716,588 | 79,584,263 | ||||||
Silicon Laboratories, Inc.(a) | 10,785 | 1,249,874 | ||||||
SolarEdge Technologies, Inc.(a)(b) | 36,249 | 4,694,608 | ||||||
Teradyne, Inc. | 48,259 | 4,848,099 | ||||||
Texas Instruments, Inc. | 367,296 | 58,403,737 |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
Universal Display Corp. | 17,758 | $ | 2,787,828 | |||||
Wolfspeed, Inc.(a)(b) | 36,285 | 1,382,459 | ||||||
|
| |||||||
1,339,820,859 | ||||||||
Software — 10.1% | ||||||||
Adobe, Inc.(a) | 137,557 | 70,140,314 | ||||||
Autodesk, Inc.(a) | 75,643 | 15,651,293 | ||||||
Blackbaud, Inc.(a) | 13,348 | 938,631 | ||||||
Cadence Design Systems, Inc.(a) | 174,519 | 40,889,802 | ||||||
CommVault Systems, Inc.(a) | 19,367 | 1,309,403 | ||||||
Dolby Laboratories, Inc., Class A | 18,897 | 1,497,776 | ||||||
Dropbox, Inc., Class A(a)(b) | 166,189 | 4,525,327 | ||||||
Dynatrace, Inc.(a) | 153,090 | 7,153,896 | ||||||
Envestnet, Inc.(a) | 9,413 | 414,454 | ||||||
Fair Isaac Corp.(a) | 16,028 | 13,920,799 | ||||||
Fortinet, Inc.(a) | 417,732 | 24,512,514 | ||||||
Gen Digital, Inc. | 191,499 | 3,385,702 | ||||||
Intuit, Inc. | 95,310 | 48,697,692 | ||||||
Manhattan Associates, Inc.(a) | 22,796 | 4,505,857 | ||||||
Microsoft Corp. | 2,766,992 | 873,677,724 | ||||||
Oracle Corp. | 596,397 | 63,170,370 | ||||||
Palo Alto Networks, Inc.(a)(b) | 196,545 | 46,078,010 | ||||||
PTC, Inc.(a) | 76,577 | 10,849,429 | ||||||
Qualys, Inc.(a) | 23,648 | 3,607,502 | ||||||
ServiceNow, Inc.(a) | 130,988 | 73,217,053 | ||||||
Synopsys, Inc.(a) | 97,701 | 44,841,828 | ||||||
Teradata Corp.(a) | 30,478 | 1,372,120 | ||||||
Tyler Technologies, Inc.(a) | 12,664 | 4,890,077 | ||||||
|
| |||||||
1,359,247,573 | ||||||||
Specialized REITs — 0.7% | ||||||||
American Tower Corp. | 158,640 | 26,088,348 | ||||||
CubeSmart | 78,485 | 2,992,633 | ||||||
Extra Space Storage, Inc. | 68,075 | 8,276,538 | ||||||
Gaming & Leisure Properties, Inc. | 111,698 | 5,087,844 | ||||||
Iron Mountain, Inc. | 118,784 | 7,061,709 | ||||||
Lamar Advertising Co., Class A | 31,693 | 2,645,415 | ||||||
National Storage Affiliates Trust | 25,822 | 819,590 | ||||||
PotlatchDeltic Corp. | 29,883 | 1,356,389 | ||||||
Public Storage | 62,998 | 16,601,233 | ||||||
Rayonier, Inc. | 47,493 | 1,351,651 | ||||||
SBA Communications Corp., Class A | 39,229 | 7,852,469 | ||||||
VICI Properties, Inc. | 372,019 | 10,825,753 | ||||||
Weyerhaeuser Co. | 267,452 | 8,200,078 | ||||||
|
| |||||||
99,159,650 | ||||||||
Specialty Retail — 2.3% | ||||||||
AutoNation, Inc.(a)(b) | 7,970 | 1,206,658 | ||||||
AutoZone, Inc.(a) | 11,643 | 29,573,103 | ||||||
Dick’s Sporting Goods, Inc. | 20,520 | 2,228,062 | ||||||
Five Below, Inc.(a)(b) | 24,884 | 4,003,836 | ||||||
Home Depot, Inc. (The) | 342,145 | 103,382,533 | ||||||
Lowe’s Cos., Inc. | 259,621 | 53,959,629 | ||||||
Murphy U.S.A., Inc. | 12,534 | 4,283,244 | ||||||
O’Reilly Automotive, Inc.(a) | 38,785 | 35,250,135 | ||||||
TJX Cos., Inc. (The) | 472,276 | 41,975,891 | ||||||
Tractor Supply Co. | 70,125 | 14,238,881 | ||||||
Ulta Beauty, Inc.(a) | 32,084 | 12,815,954 | ||||||
Valvoline, Inc. | 41,381 | 1,334,123 | ||||||
Williams-Sonoma, Inc. | 19,828 | 3,081,271 | ||||||
|
| |||||||
307,333,320 |
SCHEDULES OF INVESTMENTS | 47 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Technology Hardware, Storage & Peripherals — 12.1% | ||||||||
Apple Inc. | 9,436,467 | $ | 1,615,617,515 | |||||
Super Micro Computer, Inc.(a)(b) | 23,365 | 6,407,150 | ||||||
|
| |||||||
1,622,024,665 | ||||||||
Textiles, Apparel & Luxury Goods — 0.1% | ||||||||
Crocs, Inc.(a) | 40,035 | 3,532,288 | ||||||
Deckers Outdoor Corp.(a) | 16,843 | 8,658,818 | ||||||
|
| |||||||
12,191,106 | ||||||||
Tobacco — 0.6% | ||||||||
Altria Group, Inc. | 591,490 | 24,872,155 | ||||||
Philip Morris International, Inc. | 538,254 | 49,831,555 | ||||||
|
| |||||||
74,703,710 | ||||||||
Trading Companies & Distributors — 0.3% | ||||||||
Fastenal Co. | 179,511 | 9,808,481 | ||||||
GATX Corp. | 11,827 | 1,287,133 | ||||||
MSC Industrial Direct Co., Inc., Class A | 15,242 | 1,496,002 | ||||||
Watsco, Inc. | 21,590 | 8,154,975 | ||||||
WESCO International, Inc. | 13,160 | 1,892,671 | ||||||
WW Grainger, Inc. | 28,476 | 19,700,836 | ||||||
|
| |||||||
42,340,098 | ||||||||
Water Utilities — 0.0% | ||||||||
Essential Utilities, Inc. | 154,699 | 5,310,817 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.2% | ||||||||
T-Mobile U.S., Inc.(a) | 225,865 | 31,632,393 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% |
| 13,412,583,905 | ||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Short-Term Securities | ||||||||
Money Market Funds — 1.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 92,105,814 | $ | 92,142,656 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 66,741,839 | 66,741,839 | ||||||
|
| |||||||
Total Short-Term Securities — 1.2% |
| 158,884,495 | ||||||
|
| |||||||
Total Investments — 101.0% |
| 13,571,468,400 | ||||||
Liabilities in Excess of Other Assets — (1.0)% |
| (137,821,891 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 13,433,646,509 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
| BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 113,505,398 | $ | — | $ | (21,392,807 | )(a) | $ | 5,597 | $ | 24,468 | $ | 92,142,656 | 92,105,814 | $ | 214,227 | (b) | $ | — | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 17,496,613 | 49,245,226 | (a) | — | — | — | 66,741,839 | 66,741,839 | 532,848 | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 5,597 | $ | 24,468 | $ | 158,884,495 | $ | 747,075 | $ | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
48 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
E-Mini Technology Select Sector Index | 12 | 12/15/23 | $ | 2,002 | $ | (109,881 | ) | |||||||||
NASDAQ 100 E-Mini Index | �� | 4 | 12/15/23 | 1,189 | (48,960 | ) | ||||||||||
S&P 500 E-Mini Index | 68 | 12/15/23 | 14,707 | (612,148 | ) | |||||||||||
|
| |||||||||||||||
$ | (770,989 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 770,989 | $ | — | $ | — | $ | — | $ | 770,989 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 2,952,715 | $ | — | $ | — | $ | — | $ | 2,952,715 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (2,161,172 | ) | $ | — | $ | — | $ | — | $ | (2,161,172 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 23,391,971 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
SCHEDULES OF INVESTMENTS | 49 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Growth ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 13,412,583,905 | $ | — | $ | — | $ | 13,412,583,905 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 158,884,495 | — | — | 158,884,495 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 13,571,468,400 | $ | — | $ | — | $ | 13,571,468,400 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (770,989 | ) | $ | — | $ | — | $ | (770,989 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
50 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Aerospace & Defense — 2.2% | ||||||||
Boeing Co. (The)(a) | 433,279 | $ | 83,050,919 | |||||
General Dynamics Corp. | 81,201 | 17,942,985 | ||||||
Hexcel Corp. | 65,248 | 4,250,255 | ||||||
Howmet Aerospace, Inc. | 297,856 | 13,775,840 | ||||||
Huntington Ingalls Industries, Inc. | 30,607 | 6,261,580 | ||||||
L3Harris Technologies, Inc. | 72,416 | 12,609,074 | ||||||
Lockheed Martin Corp. | 49,603 | 20,285,643 | ||||||
Northrop Grumman Corp. | 30,427 | 13,393,661 | ||||||
RTX Corp. | 1,112,218 | 80,046,329 | ||||||
Textron, Inc. | 152,136 | 11,887,907 | ||||||
TransDigm Group, Inc.(a) | 22,315 | 18,814,446 | ||||||
Woodward, Inc. | 46,473 | 5,774,735 | ||||||
|
| |||||||
288,093,374 | ||||||||
Air Freight & Logistics — 1.1% | ||||||||
CH Robinson Worldwide, Inc. | 40,630 | 3,499,462 | ||||||
FedEx Corp. | 176,813 | 46,841,300 | ||||||
GXO Logistics, Inc.(a)(b) | 92,018 | 5,396,855 | ||||||
United Parcel Service, Inc., Class B | 552,685 | 86,147,011 | ||||||
|
| |||||||
141,884,628 | ||||||||
Automobile Components — 0.4% | ||||||||
Adient PLC(a) | 72,158 | 2,648,199 | ||||||
Aptiv PLC(a) | 215,875 | 21,283,116 | ||||||
Autoliv, Inc. | 40,478 | 3,905,317 | ||||||
BorgWarner, Inc. | 179,628 | 7,251,582 | ||||||
Gentex Corp. | 95,518 | 3,108,156 | ||||||
Goodyear Tire & Rubber Co. (The)(a) | 214,126 | 2,661,586 | ||||||
Lear Corp. | 45,564 | 6,114,689 | ||||||
|
| |||||||
46,972,645 | ||||||||
Automobiles — 0.6% | ||||||||
Ford Motor Co. | 3,004,112 | 37,311,071 | ||||||
General Motors Co. | 1,051,384 | 34,664,130 | ||||||
Harley-Davidson, Inc. | 37,123 | 1,227,286 | ||||||
Thor Industries, Inc. | 41,781 | 3,974,627 | ||||||
|
| |||||||
77,177,114 | ||||||||
Banks — 6.7% | ||||||||
Associated Banc-Corp. | 119,505 | 2,044,731 | ||||||
Bank of America Corp. | 5,282,759 | 144,641,941 | ||||||
Bank OZK | 80,818 | 2,995,923 | ||||||
Cadence Bank | 42,877 | 909,850 | ||||||
Citigroup, Inc. | 1,471,504 | 60,522,960 | ||||||
Citizens Financial Group, Inc. | 362,777 | 9,722,424 | ||||||
Columbia Banking System, Inc. | 77,872 | 1,580,802 | ||||||
Comerica, Inc. | 100,324 | 4,168,462 | ||||||
Commerce Bancshares, Inc. | 27,514 | 1,320,122 | ||||||
Cullen/Frost Bankers, Inc. | 17,361 | 1,583,497 | ||||||
East West Bancorp, Inc. | 54,058 | 2,849,397 | ||||||
Fifth Third Bancorp | 520,289 | 13,178,920 | ||||||
First Financial Bankshares, Inc. | 45,477 | 1,142,382 | ||||||
First Horizon Corp. | 144,976 | 1,597,636 | ||||||
FNB Corp. | 271,966 | 2,934,513 | ||||||
Glacier Bancorp, Inc. | 38,418 | 1,094,913 | ||||||
Hancock Whitney Corp. | 33,404 | 1,235,614 | ||||||
Home BancShares, Inc. | 148,576 | 3,111,181 | ||||||
Huntington Bancshares, Inc. | 1,107,804 | 11,521,162 | ||||||
International Bancshares Corp. | 15,533 | 673,200 | ||||||
JPMorgan Chase & Co. | 2,220,652 | 322,038,953 | ||||||
KeyCorp | 717,869 | 7,724,270 | ||||||
M&T Bank Corp. | 127,421 | 16,112,385 | ||||||
New York Community Bancorp, Inc., Class A | 551,096 | 6,249,429 |
Security | Shares | Value | ||||||
| ||||||||
Banks (continued) | ||||||||
Old National Bancorp | 223,774 | $ | 3,253,674 | |||||
Pinnacle Financial Partners, Inc. | 59,392 | 3,981,640 | ||||||
PNC Financial Services Group, Inc. (The) | 304,322 | 37,361,612 | ||||||
Prosperity Bancshares, Inc. | 73,057 | 3,987,451 | ||||||
Regions Financial Corp. | 717,042 | 12,333,122 | ||||||
SouthState Corp. | 24,974 | 1,682,249 | ||||||
Synovus Financial Corp. | 113,139 | 3,145,264 | ||||||
Texas Capital Bancshares, Inc.(a) | 36,857 | 2,170,877 | ||||||
Truist Financial Corp. | 1,017,813 | 29,119,630 | ||||||
U.S. Bancorp | 1,189,740 | 39,332,804 | ||||||
UMB Financial Corp. | 34,368 | 2,132,534 | ||||||
United Bankshares, Inc. | 52,559 | 1,450,103 | ||||||
Valley National Bancorp | 335,955 | 2,875,775 | ||||||
Webster Financial Corp. | 133,990 | 5,401,137 | ||||||
Wells Fargo & Co. | 2,795,821 | 114,237,246 | ||||||
Wintrust Financial Corp. | 47,378 | 3,577,039 | ||||||
Zions Bancorp N.A. | 115,531 | 4,030,877 | ||||||
|
| |||||||
891,027,701 | ||||||||
Beverages — 0.8% | ||||||||
Boston Beer Co., Inc. (The), Class A, NVS(a) | 2,197 | 855,798 | ||||||
Brown-Forman Corp., Class B, NVS | 64,039 | 3,694,410 | ||||||
Coca-Cola Co. (The) | 1,040,888 | 58,268,910 | ||||||
Coca-Cola Consolidated, Inc. | 3,470 | 2,208,030 | ||||||
Constellation Brands, Inc., Class A | 54,447 | 13,684,165 | ||||||
Keurig Dr Pepper, Inc. | 382,318 | 12,069,779 | ||||||
Molson Coors Beverage Co., Class B | 141,827 | 9,018,779 | ||||||
|
| |||||||
99,799,871 | ||||||||
Biotechnology — 0.1% | ||||||||
Arrowhead Pharmaceuticals, Inc.(a) | 44,737 | 1,202,083 | ||||||
Biogen, Inc.(a) | 58,768 | 15,103,964 | ||||||
|
| |||||||
16,306,047 | ||||||||
Broadline Retail — 3.8% | ||||||||
Amazon.com, Inc.(a) | 3,746,572 | 476,264,233 | ||||||
eBay, Inc. | 405,650 | 17,885,108 | ||||||
Etsy, Inc.(a)(b) | 40,896 | 2,641,064 | ||||||
Kohl’s Corp. | 87,948 | 1,843,390 | ||||||
Macy’s, Inc. | 210,213 | 2,440,573 | ||||||
Nordstrom, Inc. | 74,426 | 1,111,924 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.(a)(b) | 24,204 | 1,868,065 | ||||||
|
| |||||||
504,054,357 | ||||||||
Building Products — 1.0% | ||||||||
A O Smith Corp. | 95,197 | 6,295,378 | ||||||
Advanced Drainage Systems, Inc.(b) | 12,246 | 1,393,962 | ||||||
Allegion PLC | 67,438 | 7,027,040 | ||||||
Carrier Global Corp. | 640,064 | 35,331,533 | ||||||
Fortune Brands Innovations, Inc. | 96,726 | 6,012,488 | ||||||
Johnson Controls International PLC | 519,859 | 27,661,698 | ||||||
Lennox International, Inc. | 9,246 | 3,462,072 | ||||||
Masco Corp. | 49,316 | 2,635,940 | ||||||
Owens Corning | 31,491 | 4,295,687 | ||||||
Trane Technologies PLC | 174,346 | 35,376,547 | ||||||
Trex Co., Inc.(a) | 38,891 | 2,396,852 | ||||||
|
| |||||||
131,889,197 | ||||||||
Capital Markets — 4.5% | ||||||||
Affiliated Managers Group, Inc. | 9,653 | 1,258,172 | ||||||
Bank of New York Mellon Corp. (The) | 595,063 | 25,379,437 | ||||||
BlackRock, Inc.(c) | 107,246 | 69,333,467 | ||||||
Cboe Global Markets, Inc. | 27,004 | 4,218,295 | ||||||
Charles Schwab Corp. (The) | 466,782 | 25,626,332 | ||||||
CME Group, Inc., Class A | 274,895 | 55,039,477 |
SCHEDULES OF INVESTMENTS | 51 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Capital Markets (continued) | ||||||||
Evercore, Inc., Class A | 13,467 | $ | 1,856,830 | |||||
FactSet Research Systems, Inc. | 11,787 | 5,153,984 | ||||||
Federated Hermes, Inc., Class B | 19,753 | 669,034 | ||||||
Franklin Resources, Inc. | 219,000 | 5,383,020 | ||||||
Goldman Sachs Group, Inc. (The) | 251,916 | 81,512,460 | ||||||
Interactive Brokers Group, Inc., Class A | 36,158 | 3,129,836 | ||||||
Intercontinental Exchange, Inc. | 437,344 | 48,116,587 | ||||||
Invesco Ltd. | 340,445 | 4,943,261 | ||||||
Janus Henderson Group PLC | 100,034 | 2,582,878 | ||||||
MarketAxess Holdings, Inc. | 14,924 | 3,188,363 | ||||||
Moody’s Corp. | 64,097 | 20,265,549 | ||||||
Morgan Stanley | 974,936 | 79,623,023 | ||||||
MSCI, Inc., Class A | 25,870 | 13,273,380 | ||||||
Nasdaq, Inc. | 94,082 | 4,571,444 | ||||||
Northern Trust Corp. | 158,285 | 10,997,642 | ||||||
S&P Global, Inc. | 248,653 | 90,860,293 | ||||||
State Street Corp. | 242,772 | 16,256,013 | ||||||
Stifel Financial Corp. | 79,811 | 4,903,588 | ||||||
T Rowe Price Group, Inc. | 171,390 | 17,973,669 | ||||||
|
| |||||||
596,116,034 | ||||||||
Chemicals — 2.1% | ||||||||
Ashland, Inc. | 12,403 | 1,013,077 | ||||||
Avient Corp. | 69,952 | 2,470,705 | ||||||
Axalta Coating Systems Ltd.(a) | 93,094 | 2,504,229 | ||||||
Celanese Corp., Class A | 76,455 | 9,596,632 | ||||||
Chemours Co. (The) | 48,930 | 1,372,486 | ||||||
Corteva, Inc. | 169,079 | 8,650,082 | ||||||
Dow, Inc. | 537,246 | 27,700,404 | ||||||
DuPont de Nemours, Inc. | 350,334 | 26,131,413 | ||||||
Eastman Chemical Co. | 90,270 | 6,925,514 | ||||||
Ecolab, Inc. | 193,846 | 32,837,512 | ||||||
International Flavors & Fragrances, Inc. | 195,410 | 13,321,100 | ||||||
Linde PLC | 145,415 | 54,145,275 | ||||||
LyondellBasell Industries NV, Class A | 195,322 | 18,496,993 | ||||||
NewMarket Corp. | 2,356 | 1,072,074 | ||||||
PPG Industries, Inc. | 179,964 | 23,359,327 | ||||||
Scotts Miracle-Gro Co. (The) | 32,204 | 1,664,303 | ||||||
Sherwin-Williams Co. (The) | 180,778 | 46,107,429 | ||||||
|
| |||||||
277,368,555 | ||||||||
Commercial Services & Supplies — 0.4% | ||||||||
Brink’s Co. (The) | 18,568 | 1,348,780 | ||||||
Cintas Corp. | 26,983 | 12,979,093 | ||||||
MSA Safety, Inc. | 12,494 | 1,969,679 | ||||||
Republic Services, Inc. | 70,642 | 10,067,191 | ||||||
Stericycle, Inc.(a)(b) | 69,927 | 3,126,436 | ||||||
Tetra Tech, Inc. | 18,019 | 2,739,429 | ||||||
Waste Management, Inc. | 115,475 | 17,603,009 | ||||||
|
| |||||||
49,833,617 | ||||||||
Communications Equipment — 1.5% | ||||||||
Ciena Corp.(a) | 114,267 | 5,400,258 | ||||||
Cisco Systems, Inc. | 3,113,913 | 167,403,963 | ||||||
F5, Inc.(a) | 45,549 | 7,339,766 | ||||||
Juniper Networks, Inc. | 248,635 | 6,909,567 | ||||||
Lumentum Holdings, Inc.(a) | 53,846 | 2,432,762 | ||||||
Motorola Solutions, Inc. | 57,354 | 15,614,053 | ||||||
|
| |||||||
205,100,369 | ||||||||
Construction & Engineering — 0.1% | ||||||||
AECOM | 48,433 | 4,021,876 | ||||||
Fluor Corp.(a) | 111,195 | 4,080,857 |
Security | Shares | Value | ||||||
| ||||||||
Construction & Engineering (continued) |
| |||||||
MasTec, Inc.(a) | 45,757 | $ | 3,293,131 | |||||
MDU Resources Group, Inc. | 157,325 | 3,080,424 | ||||||
|
| |||||||
14,476,288 | ||||||||
Construction Materials — 0.2% | ||||||||
Knife River Corp.(a) | 39,331 | 1,920,532 | ||||||
Martin Marietta Materials, Inc. | 47,229 | 19,386,560 | ||||||
Vulcan Materials Co. | 41,788 | 8,442,012 | ||||||
|
| |||||||
29,749,104 | ||||||||
Consumer Finance — 0.6% | ||||||||
Ally Financial, Inc. | 167,204 | 4,461,003 | ||||||
American Express Co. | 226,735 | 33,826,595 | ||||||
Capital One Financial Corp. | 291,165 | 28,257,563 | ||||||
Discover Financial Services | 80,187 | 6,946,600 | ||||||
Synchrony Financial | 321,222 | 9,819,756 | ||||||
|
| |||||||
83,311,517 | ||||||||
Consumer Staples Distribution & Retail — 2.7% | ||||||||
BJ’s Wholesale Club Holdings, Inc.(a) | 43,801 | 3,126,077 | ||||||
Costco Wholesale Corp. | 115,131 | 65,044,410 | ||||||
Grocery Outlet Holding Corp.(a)(b) | 75,881 | 2,189,167 | ||||||
Kroger Co. (The) | 504,264 | 22,565,814 | ||||||
Performance Food Group Co.(a) | 66,686 | 3,925,138 | ||||||
Sprouts Farmers Market, Inc.(a) | 36,723 | 1,571,744 | ||||||
Sysco Corp. | 385,633 | 25,471,060 | ||||||
Target Corp. | 352,694 | 38,997,375 | ||||||
U.S. Foods Holding Corp.(a) | 125,034 | 4,963,850 | ||||||
Walgreens Boots Alliance, Inc. | 546,265 | 12,148,934 | ||||||
Walmart, Inc. | 1,090,583 | 174,416,939 | ||||||
|
| |||||||
354,420,508 | ||||||||
Containers & Packaging — 0.6% | ||||||||
Amcor PLC | 1,120,593 | 10,264,632 | ||||||
AptarGroup, Inc. | 27,178 | 3,398,337 | ||||||
Avery Dennison Corp. | 61,757 | 11,281,151 | ||||||
Ball Corp. | 241,371 | 12,015,448 | ||||||
Berry Global Group, Inc. | 51,158 | 3,167,192 | ||||||
Crown Holdings, Inc. | 56,130 | 4,966,383 | ||||||
Graphic Packaging Holding Co. | 68,254 | 1,520,699 | ||||||
Greif, Inc., Class A, NVS | 19,570 | 1,307,472 | ||||||
International Paper Co. | 265,760 | 9,426,507 | ||||||
Packaging Corp. of America | 69,077 | 10,606,773 | ||||||
Sealed Air Corp. | 111,558 | 3,665,796 | ||||||
Sonoco Products Co. | 36,032 | 1,958,339 | ||||||
Westrock Co. | 195,289 | 6,991,346 | ||||||
|
| |||||||
80,570,075 | ||||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 30,437 | 4,394,494 | ||||||
LKQ Corp. | 205,509 | 10,174,750 | ||||||
Pool Corp. | 11,278 | 4,016,096 | ||||||
|
| |||||||
18,585,340 | ||||||||
Diversified Consumer Services — 0.0% | ||||||||
Graham Holdings Co., Class B | 2,891 | 1,685,453 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.4% |
| |||||||
AT&T Inc. | 5,462,820 | 82,051,556 | ||||||
Frontier Communications Parent, Inc.(a)(b) | 172,656 | 2,702,066 | ||||||
Verizon Communications, Inc. | 3,212,472 | 104,116,218 | ||||||
|
| |||||||
188,869,840 | ||||||||
Electric Utilities — 3.1% | ||||||||
ALLETE, Inc. | 43,106 | 2,275,997 | ||||||
Alliant Energy Corp. | 194,160 | 9,407,052 | ||||||
American Electric Power Co., Inc. | 393,668 | 29,611,707 |
52 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electric Utilities (continued) | ||||||||
Constellation Energy Corp. | 245,744 | $ | 26,805,756 | |||||
Duke Energy Corp. | 588,931 | 51,979,050 | ||||||
Edison International | 293,454 | 18,572,704 | ||||||
Entergy Corp. | 162,007 | 14,985,647 | ||||||
Evergy, Inc. | 174,952 | 8,870,066 | ||||||
Eversource Energy | 266,747 | 15,511,338 | ||||||
Exelon Corp. | 759,710 | 28,709,441 | ||||||
FirstEnergy Corp. | 392,663 | 13,421,221 | ||||||
IDACORP, Inc. | 17,920 | 1,678,208 | ||||||
NextEra Energy, Inc. | 1,546,400 | 88,593,256 | ||||||
NRG Energy, Inc. | 92,248 | 3,553,393 | ||||||
Pinnacle West Capital Corp. | 86,921 | 6,404,339 | ||||||
PNM Resources, Inc. | 24,594 | 1,097,138 | ||||||
Portland General Electric Co. | 77,648 | 3,143,191 | ||||||
PPL Corp. | 565,735 | 13,328,717 | ||||||
Southern Co. (The) | 833,333 | 53,933,312 | ||||||
Xcel Energy, Inc. | 421,449 | 24,115,312 | ||||||
|
| |||||||
415,996,845 | ||||||||
Electrical Equipment — 1.3% | ||||||||
Acuity Brands, Inc. | 12,132 | 2,066,201 | ||||||
AMETEK, Inc. | 88,407 | 13,063,018 | ||||||
Eaton Corp. PLC | 304,892 | 65,027,366 | ||||||
Emerson Electric Co. | 436,708 | 42,172,892 | ||||||
EnerSys | 30,782 | 2,914,132 | ||||||
Generac Holdings, Inc.(a) | 47,559 | 5,182,029 | ||||||
Regal Rexnord Corp. | 50,972 | 7,282,879 | ||||||
Rockwell Automation, Inc. | 87,768 | 25,090,238 | ||||||
Sensata Technologies Holding PLC | 71,420 | 2,701,104 | ||||||
Sunrun, Inc.(a)(b) | 169,486 | 2,128,744 | ||||||
Vicor Corp.(a)(b) | 9,575 | 563,872 | ||||||
|
| |||||||
168,192,475 | ||||||||
Electronic Equipment, Instruments & Components — 1.1% | ||||||||
Arrow Electronics, Inc.(a) | 42,756 | 5,354,762 | ||||||
Avnet, Inc. | 68,948 | 3,322,604 | ||||||
CDW Corp. | 37,806 | 7,627,739 | ||||||
Cognex Corp. | 62,794 | 2,664,977 | ||||||
Coherent Corp.(a) | 99,960 | 3,262,694 | ||||||
Corning, Inc. | 587,552 | 17,902,710 | ||||||
Crane NXT Co. | 18,039 | 1,002,427 | ||||||
IPG Photonics Corp.(a)(b) | 22,800 | 2,315,112 | ||||||
Jabil, Inc.(b) | 100,498 | 12,752,191 | ||||||
Keysight Technologies, Inc.(a) | 62,715 | 8,297,822 | ||||||
Littelfuse, Inc. | 7,187 | 1,777,489 | ||||||
National Instruments Corp. | 41,462 | 2,471,964 | ||||||
TD SYNNEX Corp. | 36,736 | 3,668,457 | ||||||
TE Connectivity Ltd. | 239,585 | 29,595,935 | ||||||
Teledyne Technologies, Inc.(a) | 36,052 | 14,730,126 | ||||||
Trimble, Inc.(a) | 188,463 | 10,150,617 | ||||||
Vishay Intertechnology, Inc. | 98,986 | 2,446,934 | ||||||
Vontier Corp. | 120,705 | 3,732,199 | ||||||
Zebra Technologies Corp., Class A(a)(b) | 39,434 | 9,327,324 | ||||||
|
| |||||||
142,404,083 | ||||||||
Energy Equipment & Services — 0.6% | ||||||||
Baker Hughes Co., Class A | 771,517 | 27,249,980 | ||||||
Halliburton Co. | 686,615 | 27,807,908 | ||||||
Schlumberger NV | 510,415 | 29,757,194 | ||||||
|
| |||||||
84,815,082 | ||||||||
Entertainment — 2.4% | ||||||||
Activision Blizzard, Inc. | 224,755 | 21,043,811 | ||||||
Electronic Arts, Inc. | 60,597 | 7,295,879 | ||||||
Live Nation Entertainment, Inc.(a) | 108,893 | 9,042,475 |
Security | Shares | Value | ||||||
Entertainment (continued) | ||||||||
Netflix, Inc.(a) | 338,625 | $ | 127,864,800 | |||||
Take-Two Interactive Software, Inc.(a) | 120,352 | 16,896,217 | ||||||
Walt Disney Co. (The)(a) | 1,398,207 | 113,324,677 | ||||||
Warner Bros Discovery, Inc., Class A(a)(b) | 1,690,794 | 18,362,023 | ||||||
|
| |||||||
313,829,882 | ||||||||
Financial Services — 4.7% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 1,393,546 | 488,159,164 | ||||||
Essent Group Ltd. | 84,512 | 3,996,572 | ||||||
Euronet Worldwide, Inc.(a)(b) | 18,100 | 1,436,778 | ||||||
Fidelity National Information Services, Inc. | 453,824 | 25,082,853 | ||||||
Fiserv, Inc.(a) | 145,154 | 16,396,596 | ||||||
FleetCor Technologies, Inc.(a)(b) | 26,802 | 6,843,623 | ||||||
Global Payments, Inc. | 198,585 | 22,914,723 | ||||||
MGIC Investment Corp. | 214,416 | 3,578,603 | ||||||
PayPal Holdings, Inc.(a) | 839,054 | 49,051,097 | ||||||
Voya Financial, Inc. | 81,247 | 5,398,863 | ||||||
Western Union Co. (The) | 231,224 | 3,047,532 | ||||||
|
| |||||||
625,906,404 | ||||||||
Food Products — 1.1% | ||||||||
Archer-Daniels-Midland Co. | 208,273 | 15,707,950 | ||||||
Bunge Ltd. | 68,865 | 7,454,636 | ||||||
Campbell Soup Co. | 62,101 | 2,551,109 | ||||||
Conagra Brands, Inc. | 364,142 | 9,984,774 | ||||||
Flowers Foods, Inc. | 53,607 | 1,189,003 | ||||||
General Mills, Inc. | 142,590 | 9,124,334 | ||||||
Hormel Foods Corp. | 61,125 | 2,324,584 | ||||||
Ingredion, Inc. | 50,794 | 4,998,130 | ||||||
J M Smucker Co. (The) | 78,432 | 9,640,077 | ||||||
Kellanova | 91,106 | 5,421,718 | ||||||
Kraft Heinz Co. (The) | 610,079 | 20,523,058 | ||||||
McCormick & Co., Inc., NVS | 94,095 | 7,117,346 | ||||||
Mondelez International, Inc., Class A | 478,194 | 33,186,664 | ||||||
Pilgrim’s Pride Corp.(a) | 30,746 | 701,931 | ||||||
Post Holdings, Inc.(a)(b) | 38,821 | 3,328,512 | ||||||
Tyson Foods, Inc., Class A | 218,217 | 11,017,776 | ||||||
|
| |||||||
144,271,602 | ||||||||
Gas Utilities — 0.1% | ||||||||
Atmos Energy Corp. | 43,410 | 4,598,421 | ||||||
National Fuel Gas Co. | 20,691 | 1,074,070 | ||||||
New Jersey Resources Corp. | 25,399 | 1,031,961 | ||||||
Southwest Gas Holdings, Inc. | 46,117 | 2,785,928 | ||||||
Spire, Inc. | 20,182 | 1,141,898 | ||||||
UGI Corp. | 161,270 | 3,709,210 | ||||||
|
| |||||||
14,341,488 | ||||||||
Ground Transportation — 1.0% | ||||||||
CSX Corp. | 797,084 | 24,510,333 | ||||||
Hertz Global Holdings, Inc.(a) | 102,803 | 1,259,337 | ||||||
Knight-Swift Transportation Holdings, Inc. | 63,026 | 3,160,754 | ||||||
Norfolk Southern Corp. | 173,471 | 34,161,644 | ||||||
Ryder System, Inc. | 34,966 | 3,739,614 | ||||||
Saia, Inc.(a)(b) | 8,894 | 3,545,593 | ||||||
Union Pacific Corp. | 232,854 | 47,416,060 | ||||||
Werner Enterprises, Inc. | 48,683 | 1,896,203 | ||||||
XPO, Inc.(a) | 89,205 | 6,660,045 | ||||||
|
| |||||||
126,349,583 | ||||||||
Health Care Equipment & Supplies — 3.9% | ||||||||
Abbott Laboratories | 636,506 | 61,645,606 | ||||||
Align Technology, Inc.(a) | 54,233 | 16,558,420 | ||||||
Baxter International, Inc. | 386,645 | 14,591,982 | ||||||
Becton Dickinson & Co. | 221,682 | 57,311,447 |
SCHEDULES OF INVESTMENTS | 53 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) |
| |||||||
Boston Scientific Corp.(a) | 525,867 | $ | 27,765,778 | |||||
Cooper Cos., Inc. (The) | 37,929 | 12,061,801 | ||||||
DENTSPLY SIRONA, Inc. | 161,773 | 5,526,166 | ||||||
Edwards Lifesciences Corp.(a) | 464,424 | 32,175,295 | ||||||
Enovis Corp.(a) | 35,933 | 1,894,747 | ||||||
Envista Holdings Corp.(a) | 126,186 | 3,518,066 | ||||||
GE HealthCare Technologies, Inc. | 299,596 | 20,384,512 | ||||||
ICU Medical, Inc.(a)(b) | 15,195 | 1,808,357 | ||||||
IDEXX Laboratories, Inc.(a) | 32,486 | 14,205,153 | ||||||
Integra LifeSciences Holdings Corp.(a) | 54,798 | 2,092,736 | ||||||
Intuitive Surgical, Inc.(a) | 136,895 | 40,013,040 | ||||||
LivaNova PLC(a) | 40,366 | 2,134,554 | ||||||
Masimo Corp.(a) | 13,489 | 1,182,715 | ||||||
Medtronic PLC | 1,017,186 | 79,706,695 | ||||||
Neogen Corp.(a)(b) | 151,167 | 2,802,636 | ||||||
Penumbra, Inc.(a) | 11,134 | 2,693,426 | ||||||
QuidelOrtho Corp.(a) | 18,155 | 1,326,041 | ||||||
ResMed, Inc. | 51,996 | 7,688,648 | ||||||
STERIS PLC | 75,185 | 16,497,093 | ||||||
Stryker Corp. | 258,281 | 70,580,449 | ||||||
Teleflex, Inc. | 35,876 | 7,046,405 | ||||||
Zimmer Biomet Holdings, Inc. | 159,678 | 17,919,065 | ||||||
|
| |||||||
521,130,833 | ||||||||
Health Care Providers & Services — 2.1% | ||||||||
Acadia Healthcare Co., Inc.(a) | 28,815 | 2,025,983 | ||||||
Amedisys, Inc.(a) | 24,640 | 2,301,376 | ||||||
Cardinal Health, Inc. | 195,253 | 16,951,865 | ||||||
Cencora, Inc. | 127,331 | 22,915,760 | ||||||
Centene Corp.(a) | 413,765 | 28,500,133 | ||||||
Chemed Corp. | 3,588 | 1,864,684 | ||||||
Cigna Group (The) | 115,345 | 32,996,744 | ||||||
CVS Health Corp. | 981,462 | 68,525,677 | ||||||
DaVita, Inc.(a)(b) | 41,146 | 3,889,531 | ||||||
Encompass Health Corp. | 40,641 | 2,729,450 | ||||||
HCA Healthcare, Inc. | 70,584 | 17,362,252 | ||||||
Henry Schein, Inc.(a) | 100,310 | 7,448,018 | ||||||
Humana, Inc. | 34,253 | 16,664,770 | ||||||
Laboratory Corp. of America Holdings | 67,983 | 13,667,982 | ||||||
McKesson Corp. | 55,642 | 24,195,924 | ||||||
Patterson Cos., Inc. | 64,194 | 1,902,710 | ||||||
Progyny, Inc.(a)(b) | 40,174 | 1,366,719 | ||||||
Quest Diagnostics, Inc. | 29,202 | 3,558,556 | ||||||
R1 RCM, Inc.(a)(b) | 151,238 | 2,279,157 | ||||||
Tenet Healthcare Corp.(a) | 78,105 | 5,146,338 | ||||||
Universal Health Services, Inc., Class B | 47,480 | 5,969,660 | ||||||
|
| |||||||
282,263,289 | ||||||||
Health Care REITs — 0.5% | ||||||||
Healthcare Realty Trust, Inc. | 293,664 | 4,484,249 | ||||||
Healthpeak Properties, Inc. | 419,519 | 7,702,369 | ||||||
Medical Properties Trust, Inc. | 461,392 | 2,514,586 | ||||||
Omega Healthcare Investors, Inc. | 95,925 | 3,180,873 | ||||||
Physicians Realty Trust | 184,388 | 2,247,690 | ||||||
Sabra Health Care REIT, Inc. | 174,171 | 2,427,944 | ||||||
Ventas, Inc. | 307,179 | 12,941,451 | ||||||
Welltower, Inc. | 396,382 | 32,471,614 | ||||||
|
| |||||||
67,970,776 | ||||||||
Health Care Technology — 0.0% | ||||||||
Doximity, Inc., Class A(a)(b) | 37,305 | 791,612 | ||||||
|
|
Security | Shares | Value | ||||||
Hotel & Resort REITs — 0.1% | ||||||||
Host Hotels & Resorts, Inc. | 546,461 | $ | 8,781,628 | |||||
Park Hotels & Resorts, Inc. | 164,416 | 2,025,605 | ||||||
|
| |||||||
10,807,233 | ||||||||
Hotels, Restaurants & Leisure — 2.8% | ||||||||
Airbnb, Inc., Class A(a) | 195,480 | 26,821,811 | ||||||
Aramark | 117,932 | 4,092,240 | ||||||
Booking Holdings, Inc.(a) | 27,272 | 84,105,484 | ||||||
Boyd Gaming Corp. | 22,243 | 1,353,042 | ||||||
Caesars Entertainment, Inc.(a) | 164,419 | 7,620,821 | ||||||
Carnival Corp.(a) | 769,822 | 10,561,958 | ||||||
Choice Hotels International, Inc.(b) | 8,576 | 1,050,646 | ||||||
Darden Restaurants, Inc. | 92,049 | 13,183,258 | ||||||
Domino’s Pizza, Inc. | 14,416 | 5,460,637 | ||||||
Expedia Group, Inc.(a) | 105,872 | 10,912,227 | ||||||
Hilton Grand Vacations, Inc.(a) | 26,487 | 1,078,021 | ||||||
Hilton Worldwide Holdings, Inc. | 103,556 | 15,552,040 | ||||||
Las Vegas Sands Corp. | 249,698 | 11,446,156 | ||||||
Light & Wonder, Inc., Class A(a)(b) | 38,139 | 2,720,455 | ||||||
Marriott International, Inc., Class A | 93,588 | 18,395,657 | ||||||
Marriott Vacations Worldwide Corp. | 26,060 | 2,622,418 | ||||||
McDonald’s Corp. | 211,612 | 55,747,065 | ||||||
MGM Resorts International(b) | 215,609 | 7,925,787 | ||||||
Norwegian Cruise Line Holdings Ltd.(a)(b) | 325,849 | 5,369,991 | ||||||
Penn Entertainment, Inc.(a)(b) | 116,967 | 2,684,393 | ||||||
Planet Fitness, Inc., Class A(a)(b) | 20,828 | 1,024,321 | ||||||
Royal Caribbean Cruises Ltd.(a) | 179,559 | 16,544,566 | ||||||
Starbucks Corp. | 428,871 | 39,143,056 | ||||||
Travel + Leisure Co. | 56,482 | 2,074,584 | ||||||
Vail Resorts, Inc. | 14,215 | 3,154,166 | ||||||
Wyndham Hotels & Resorts, Inc. | 31,969 | 2,223,124 | ||||||
Wynn Resorts Ltd. | 74,387 | 6,874,103 | ||||||
Yum! Brands, Inc. | 77,412 | 9,671,855 | ||||||
|
| |||||||
369,413,882 | ||||||||
Household Durables — 0.8% | ||||||||
DR Horton, Inc. | 115,703 | 12,434,601 | ||||||
Garmin Ltd. | 116,985 | 12,306,822 | ||||||
Helen of Troy Ltd.(a)(b) | 18,092 | 2,108,803 | ||||||
KB Home | 59,374 | 2,747,829 | ||||||
Leggett & Platt, Inc. | 104,931 | 2,666,297 | ||||||
Lennar Corp., Class A | 192,565 | 21,611,570 | ||||||
Mohawk Industries, Inc.(a) | 41,057 | 3,523,101 | ||||||
NVR, Inc.(a) | 2,499 | 14,902,287 | ||||||
PulteGroup, Inc. | 166,757 | 12,348,356 | ||||||
Taylor Morrison Home Corp., Class A(a)(b) | 84,570 | 3,603,528 | ||||||
Toll Brothers, Inc. | 83,977 | 6,210,939 | ||||||
TopBuild Corp.(a) | 11,335 | 2,851,886 | ||||||
Whirlpool Corp. | 41,956 | 5,609,517 | ||||||
|
| |||||||
102,925,536 | ||||||||
Household Products — 1.4% | ||||||||
Church & Dwight Co., Inc. | 187,581 | 17,188,047 | ||||||
Clorox Co. (The) | 52,012 | 6,816,693 | ||||||
Colgate-Palmolive Co. | 283,908 | 20,188,698 | ||||||
Kimberly-Clark Corp. | 134,681 | 16,276,199 | ||||||
Procter & Gamble Co. (The) | 810,590 | 118,232,657 | ||||||
|
| |||||||
178,702,294 | ||||||||
Independent Power and Renewable Electricity Producers — 0.1% | ||||||||
AES Corp. (The) | 210,889 | 3,205,513 | ||||||
Ormat Technologies, Inc.(b) | 16,430 | 1,148,786 | ||||||
Vistra Corp. | 92,892 | 3,082,156 | ||||||
|
| |||||||
7,436,455 |
54 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Industrial Conglomerates — 1.7% | ||||||||
3M Co. | 421,800 | $ | 39,488,916 | |||||
General Electric Co.(b) | 831,673 | 91,941,450 | ||||||
Honeywell International, Inc. | 507,361 | 93,729,871 | ||||||
|
| |||||||
225,160,237 | ||||||||
Industrial REITs — 0.7% | ||||||||
EastGroup Properties, Inc. | 15,598 | 2,597,535 | ||||||
First Industrial Realty Trust, Inc. | 48,818 | 2,323,248 | ||||||
Prologis, Inc. | 705,957 | 79,215,435 | ||||||
Rexford Industrial Realty, Inc. | 66,200 | 3,266,970 | ||||||
STAG Industrial, Inc. | 75,327 | 2,599,535 | ||||||
|
| |||||||
90,002,723 | ||||||||
Insurance — 2.7% | ||||||||
Aflac, Inc. | 413,090 | 31,704,657 | ||||||
Allstate Corp. (The) | 199,876 | 22,268,185 | ||||||
American Financial Group, Inc. | 27,819 | 3,106,548 | ||||||
American International Group, Inc. | 543,990 | 32,965,794 | ||||||
Aon PLC, Class A | 52,706 | 17,088,339 | ||||||
Arthur J. Gallagher & Co. | 59,181 | 13,489,125 | ||||||
Assurant, Inc. | 41,000 | 5,886,780 | ||||||
Brighthouse Financial, Inc.(a) | 51,535 | 2,522,123 | ||||||
Brown & Brown, Inc. | 74,906 | 5,231,435 | ||||||
Chubb Ltd. | 134,960 | 28,095,973 | ||||||
Cincinnati Financial Corp. | 119,806 | 12,254,956 | ||||||
CNO Financial Group, Inc. | 90,485 | 2,147,209 | ||||||
Everest Group Ltd. | 13,792 | 5,126,073 | ||||||
Fidelity National Financial, Inc., Class A | 22,062 | 911,161 | ||||||
First American Financial Corp. | 77,504 | 4,378,201 | ||||||
Globe Life, Inc. | 19,931 | 2,167,098 | ||||||
Hanover Insurance Group, Inc. (The) | 10,996 | 1,220,336 | ||||||
Hartford Financial Services Group, Inc. (The) | 234,905 | 16,657,114 | ||||||
Kemper Corp. | 45,805 | 1,925,184 | ||||||
Loews Corp. | 142,037 | 8,992,362 | ||||||
Marsh & McLennan Cos., Inc. | 135,885 | 25,858,915 | ||||||
MetLife, Inc. | 482,708 | 30,367,160 | ||||||
Old Republic International Corp. | 202,270 | 5,449,154 | ||||||
Primerica, Inc. | 8,633 | 1,674,888 | ||||||
Principal Financial Group, Inc. | 66,270 | 4,776,079 | ||||||
Prudential Financial, Inc. | 277,385 | 26,321,063 | ||||||
Reinsurance Group of America, Inc. | 51,314 | 7,450,280 | ||||||
RenaissanceRe Holdings Ltd. | 16,906 | 3,346,036 | ||||||
Travelers Cos., Inc. (The) | 80,472 | 13,141,882 | ||||||
Unum Group | 140,507 | 6,911,539 | ||||||
Willis Towers Watson PLC | 80,258 | 16,770,712 | ||||||
|
| |||||||
360,206,361 | ||||||||
Interactive Media & Services — 3.9% | ||||||||
Match Group, Inc.(a) | 213,568 | 8,366,526 | ||||||
Meta Platforms, Inc., Class A(a) | 1,698,364 | 509,865,857 | ||||||
Ziff Davis, Inc.(a) | 35,586 | 2,266,472 | ||||||
ZoomInfo Technologies, Inc., Class A(a) | 112,485 | 1,844,754 | ||||||
|
| |||||||
522,343,609 | ||||||||
IT Services — 1.7% | ||||||||
Accenture PLC, Class A | 245,831 | 75,497,158 | ||||||
Akamai Technologies, Inc.(a) | 116,749 | 12,438,439 | ||||||
Cognizant Technology Solutions Corp., Class A | 385,923 | 26,142,424 | ||||||
DXC Technology Co.(a)(b) | 157,606 | 3,282,933 | ||||||
EPAM Systems, Inc.(a) | 14,240 | 3,641,026 | ||||||
International Business Machines Corp. | 696,134 | 97,667,600 | ||||||
Kyndryl Holdings, Inc.(a) | 175,828 | 2,655,003 | ||||||
VeriSign, Inc.(a) | 34,831 | 7,054,322 | ||||||
|
| |||||||
228,378,905 |
Security | Shares | Value | ||||||
Leisure Products — 0.1% | ||||||||
Brunswick Corp. | 22,422 | $ | 1,771,338 | |||||
Hasbro, Inc. | 100,164 | 6,624,847 | ||||||
Mattel, Inc.(a) | 273,735 | 6,030,382 | ||||||
Polaris, Inc. | 19,711 | 2,052,704 | ||||||
Topgolf Callaway Brands Corp.(a)(b) | 105,910 | 1,465,794 | ||||||
YETI Holdings, Inc.(a)(b) | 29,271 | 1,411,448 | ||||||
|
| |||||||
19,356,513 | ||||||||
Life Sciences Tools & Services — 0.8% | ||||||||
Agilent Technologies, Inc. | 90,208 | 10,087,059 | ||||||
Azenta, Inc.(a) | 46,205 | 2,319,029 | ||||||
Bio-Rad Laboratories, Inc., Class A(a) | 15,955 | 5,719,070 | ||||||
Bio-Techne Corp. | 63,041 | 4,291,201 | ||||||
Bruker Corp. | 30,916 | 1,926,067 | ||||||
Charles River Laboratories International, Inc.(a) | 39,613 | 7,763,356 | ||||||
Illumina, Inc.(a) | 121,144 | 16,630,648 | ||||||
IQVIA Holdings, Inc.(a)(b) | 72,457 | 14,255,915 | ||||||
Mettler-Toledo International, Inc.(a) | 5,876 | 6,511,019 | ||||||
Revvity, Inc. | 95,345 | 10,554,691 | ||||||
Sotera Health Co.(a)(b) | 74,455 | 1,115,336 | ||||||
West Pharmaceutical Services, Inc. | 56,373 | 21,151,713 | ||||||
|
| |||||||
102,325,104 | ||||||||
Machinery — 2.5% | ||||||||
AGCO Corp. | 23,450 | 2,773,666 | ||||||
Caterpillar, Inc. | 155,928 | 42,568,344 | ||||||
Chart Industries, Inc.(a)(b) | 17,558 | 2,969,409 | ||||||
Crane Co.(b) | 18,039 | 1,602,585 | ||||||
Cummins, Inc. | 53,145 | 12,141,507 | ||||||
Donaldson Co., Inc. | 33,250 | 1,983,030 | ||||||
Dover Corp. | 106,885 | 14,911,526 | ||||||
Esab Corp. | 43,515 | 3,055,623 | ||||||
Flowserve Corp. | 99,445 | 3,954,928 | ||||||
Fortive Corp. | 268,995 | 19,948,669 | ||||||
Graco, Inc. | 46,151 | 3,363,485 | ||||||
IDEX Corp. | 25,002 | 5,200,916 | ||||||
Illinois Tool Works, Inc. | 103,341 | 23,800,466 | ||||||
Ingersoll Rand, Inc. | 308,545 | 19,660,487 | ||||||
ITT, Inc. | 33,683 | 3,297,903 | ||||||
Middleby Corp. (The)(a) | 21,128 | 2,704,384 | ||||||
Nordson Corp. | 41,056 | 9,162,467 | ||||||
Oshkosh Corp. | 50,611 | 4,829,808 | ||||||
Otis Worldwide Corp. | 314,631 | 25,268,016 | ||||||
PACCAR, Inc. | 399,496 | 33,965,150 | ||||||
Parker-Hannifin Corp. | 98,034 | 38,186,204 | ||||||
Pentair PLC | 126,887 | 8,215,933 | ||||||
Snap-on, Inc. | 17,277 | 4,406,672 | ||||||
Stanley Black & Decker, Inc. | 117,344 | 9,807,611 | ||||||
Terex Corp. | 53,206 | 3,065,730 | ||||||
Timken Co. (The) | 25,460 | 1,871,055 | ||||||
Watts Water Technologies, Inc., Class A | 9,872 | 1,706,079 | ||||||
Westinghouse Air Brake Technologies Corp. | 136,879 | 14,546,131 | ||||||
Xylem, Inc. | 184,244 | 16,771,731 | ||||||
|
| |||||||
335,739,515 | ||||||||
Marine Transportation — 0.0% | ||||||||
Kirby Corp.(a) | 45,727 | 3,786,196 | ||||||
|
| |||||||
Media — 1.7% | ||||||||
Cable One, Inc. | 3,636 | 2,238,467 | ||||||
Charter Communications, Inc., Class A(a)(b) | 77,771 | 34,205,241 | ||||||
Comcast Corp., Class A | 3,144,959 | 139,447,482 | ||||||
Fox Corp., Class A, NVS | 194,853 | 6,079,414 | ||||||
Fox Corp., Class B | 100,650 | 2,906,772 | ||||||
Interpublic Group of Cos., Inc. (The) | 292,154 | 8,373,134 |
SCHEDULES OF INVESTMENTS | 55 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
New York Times Co. (The), Class A | 62,082 | $ | 2,557,778 | |||||
News Corp., Class A, NVS | 295,124 | 5,920,187 | ||||||
News Corp., Class B | 89,395 | 1,865,674 | ||||||
Omnicom Group, Inc. | 149,932 | 11,166,935 | ||||||
Paramount Global, Class B, NVS | 370,402 | 4,778,186 | ||||||
TEGNA, Inc. | 154,780 | 2,255,145 | ||||||
|
| |||||||
221,794,415 | ||||||||
Metals & Mining — 0.3% | ||||||||
Alcoa Corp. | 136,340 | 3,962,040 | ||||||
Cleveland-Cliffs, Inc.(a) | 387,479 | 6,056,297 | ||||||
Commercial Metals Co. | 38,932 | 1,923,630 | ||||||
Newmont Corp. | 606,969 | 22,427,504 | ||||||
United States Steel Corp. | 173,114 | 5,622,743 | ||||||
Worthington Industries, Inc. | 11,667 | 721,254 | ||||||
|
| |||||||
40,713,468 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.0% | ||||||||
Starwood Property Trust, Inc. | 228,242 | 4,416,483 | ||||||
|
| |||||||
Multi-Utilities — 1.2% | ||||||||
Ameren Corp. | 201,210 | 15,056,544 | ||||||
Black Hills Corp. | 26,131 | 1,321,967 | ||||||
CenterPoint Energy, Inc. | 484,152 | 12,999,481 | ||||||
CMS Energy Corp. | 223,312 | 11,860,100 | ||||||
Consolidated Edison, Inc. | 263,479 | 22,535,359 | ||||||
Dominion Energy, Inc. | 639,409 | 28,562,400 | ||||||
DTE Energy Co. | 157,940 | 15,680,283 | ||||||
NiSource, Inc. | 316,505 | 7,811,344 | ||||||
Northwestern Energy Group, Inc. | 46,456 | 2,232,675 | ||||||
Public Service Enterprise Group, Inc. | 381,389 | 21,704,848 | ||||||
Sempra | 191,482 | 13,026,521 | ||||||
WEC Energy Group, Inc. | 115,489 | 9,302,639 | ||||||
|
| |||||||
162,094,161 | ||||||||
Office REITs — 0.2% | ||||||||
Alexandria Real Estate Equities, Inc. | 118,994 | 11,911,299 | ||||||
Boston Properties, Inc. | 109,396 | 6,506,874 | ||||||
COPT Defense Properties | 40,700 | 969,881 | ||||||
Cousins Properties, Inc. | 114,193 | 2,326,112 | ||||||
Kilroy Realty Corp. | 83,456 | 2,638,044 | ||||||
Vornado Realty Trust | 121,476 | 2,755,076 | ||||||
|
| |||||||
27,107,286 | ||||||||
Oil, Gas & Consumable Fuels — 1.1% | ||||||||
Chesapeake Energy Corp. | 86,423 | 7,452,255 | ||||||
Chord Energy Corp. | 7,664 | 1,242,105 | ||||||
Equitrans Midstream Corp. | 178,465 | 1,672,217 | ||||||
HF Sinclair Corp. | 62,553 | 3,561,142 | ||||||
Kinder Morgan, Inc. | 1,480,919 | 24,553,637 | ||||||
Marathon Petroleum Corp. | 158,829 | 24,037,181 | ||||||
Ovintiv, Inc. | 44,839 | 2,132,991 | ||||||
Permian Resources Corp., Class A | 70,382 | 982,533 | ||||||
PetroCorp Escrow(a)(d) | 190 | — | ||||||
Phillips 66 | 340,263 | 40,882,599 | ||||||
Valero Energy Corp. | 269,845 | 38,239,735 | ||||||
|
| |||||||
144,756,395 | ||||||||
Passenger Airlines — 0.4% | ||||||||
Alaska Air Group, Inc.(a) | 98,742 | 3,661,354 | ||||||
American Airlines Group, Inc.(a)(b) | 499,751 | 6,401,810 | ||||||
Delta Air Lines, Inc. | 491,661 | 18,191,457 | ||||||
Southwest Airlines Co. | 455,973 | 12,343,189 | ||||||
United Airlines Holdings, Inc.(a) | 249,167 | 10,539,764 | ||||||
|
| |||||||
51,137,574 |
Security | Shares | Value | ||||||
Personal Care Products — 0.2% | ||||||||
BellRing Brands, Inc.(a) | 60,258 | $ | 2,484,437 | |||||
Coty, Inc., Class A(a) | 273,633 | 3,001,754 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 177,182 | 25,611,658 | ||||||
|
| |||||||
31,097,849 | ||||||||
Pharmaceuticals — 1.5% | ||||||||
Catalent, Inc.(a)(b) | 138,501 | 6,305,950 | ||||||
Johnson & Johnson | 699,219 | 108,903,359 | ||||||
Organon & Co. | 196,330 | 3,408,289 | ||||||
Perrigo Co. PLC | 104,680 | 3,344,526 | ||||||
Viatris, Inc. | 911,859 | 8,990,930 | ||||||
Zoetis, Inc., Class A | 351,749 | 61,197,291 | ||||||
|
| |||||||
192,150,345 | ||||||||
Professional Services — 0.7% | ||||||||
ASGN, Inc.(a) | 37,620 | 3,072,802 | ||||||
Broadridge Financial Solutions, Inc. | 47,072 | 8,428,242 | ||||||
CACI International, Inc., Class A(a) | 6,375 | 2,001,304 | ||||||
Ceridian HCM Holding, Inc.(a)(b) | 119,647 | 8,118,049 | ||||||
Equifax, Inc. | 47,745 | 8,745,929 | ||||||
Exponent, Inc. | 12,027 | 1,029,511 | ||||||
Genpact Ltd. | 54,674 | 1,979,199 | ||||||
Jacobs Solutions, Inc. | 96,220 | 13,134,030 | ||||||
Leidos Holdings, Inc. | 37,476 | 3,453,788 | ||||||
ManpowerGroup, Inc. | 38,118 | 2,794,812 | ||||||
Maximus, Inc. | 47,271 | 3,530,198 | ||||||
Paychex, Inc. | 105,137 | 12,125,450 | ||||||
Robert Half, Inc. | 81,654 | 5,983,605 | ||||||
Science Applications International Corp. | 13,716 | 1,447,587 | ||||||
Verisk Analytics, Inc.(b) | 59,906 | 14,152,193 | ||||||
|
| |||||||
89,996,699 | ||||||||
Real Estate Management & Development — 0.2% | ||||||||
CBRE Group, Inc., Class A(a) | 236,208 | 17,446,323 | ||||||
Jones Lang LaSalle, Inc.(a) | 36,590 | 5,165,776 | ||||||
|
| |||||||
22,612,099 | ||||||||
Residential REITs — 0.8% | ||||||||
Apartment Income REIT Corp. | 113,723 | 3,491,296 | ||||||
AvalonBay Communities, Inc. | 108,794 | 18,684,282 | ||||||
Camden Property Trust | 82,014 | 7,756,884 | ||||||
Equity LifeStyle Properties, Inc. | 143,088 | 9,116,137 | ||||||
Equity Residential | 262,698 | 15,423,000 | ||||||
Essex Property Trust, Inc. | 48,792 | 10,348,295 | ||||||
Independence Realty Trust, Inc. | 168,799 | 2,375,002 | ||||||
Invitation Homes, Inc. | 439,557 | 13,929,561 | ||||||
Mid-America Apartment Communities, Inc. | 89,393 | 11,500,409 | ||||||
UDR, Inc. | 232,845 | 8,305,581 | ||||||
|
| |||||||
100,930,447 | ||||||||
Retail REITs — 0.7% | ||||||||
Agree Realty Corp. | 23,238 | 1,283,667 | ||||||
Brixmor Property Group, Inc. | 115,346 | 2,396,890 | ||||||
Federal Realty Investment Trust | 56,310 | 5,103,375 | ||||||
Kimco Realty Corp. | 472,187 | 8,305,769 | ||||||
Kite Realty Group Trust | 171,316 | 3,669,589 | ||||||
NNN REIT, Inc. | 66,222 | 2,340,285 | ||||||
Realty Income Corp. | 541,614 | 27,048,203 | ||||||
Regency Centers Corp. | 126,097 | 7,495,206 | ||||||
Simon Property Group, Inc. | 250,018 | 27,009,445 | ||||||
Spirit Realty Capital, Inc. | 108,471 | 3,637,033 | ||||||
|
| |||||||
88,289,462 | ||||||||
Semiconductors & Semiconductor Equipment — 3.6% | ||||||||
Advanced Micro Devices, Inc.(a) | 567,918 | 58,393,329 | ||||||
Allegro MicroSystems, Inc.(a) | 29,927 | 955,868 |
56 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) |
| |||||||
Analog Devices, Inc. | 203,074 | $ | 35,556,227 | |||||
Broadcom, Inc. | 126,138 | 104,767,700 | ||||||
Intel Corp. | 3,200,218 | 113,767,750 | ||||||
Microchip Technology, Inc. | 213,214 | 16,641,353 | ||||||
Micron Technology, Inc. | 836,967 | 56,938,865 | ||||||
MKS Instruments, Inc. | 48,266 | 4,176,940 | ||||||
NXP Semiconductors NV | 80,767 | 16,146,939 | ||||||
Qorvo, Inc.(a) | 74,818 | 7,142,874 | ||||||
Silicon Laboratories, Inc.(a)(b) | 11,802 | 1,367,734 | ||||||
Skyworks Solutions, Inc. | 121,109 | 11,940,136 | ||||||
Synaptics, Inc.(a) | 30,073 | 2,689,729 | ||||||
Teradyne, Inc. | 59,897 | 6,017,252 | ||||||
Texas Instruments, Inc. | 256,708 | 40,819,139 | ||||||
Universal Display Corp. | 12,132 | 1,904,603 | ||||||
Wolfspeed, Inc.(a)(b) | 53,742 | 2,047,570 | ||||||
|
| |||||||
481,274,008 | ||||||||
Software — 9.1% | ||||||||
ACI Worldwide, Inc.(a) | 84,734 | 1,911,599 | ||||||
Adobe, Inc.(a) | 184,597 | 94,126,010 | ||||||
ANSYS, Inc.(a) | 66,319 | 19,733,218 | ||||||
Aspen Technology, Inc.(a) | 21,675 | 4,427,335 | ||||||
Autodesk, Inc.(a)(b) | 73,438 | 15,195,057 | ||||||
Blackbaud, Inc.(a) | 17,772 | 1,249,727 | ||||||
CommVault Systems, Inc.(a) | 10,833 | 732,419 | ||||||
Dolby Laboratories, Inc., Class A | 23,229 | 1,841,131 | ||||||
Envestnet, Inc.(a) | 5,825 | 256,475 | ||||||
Gen Digital, Inc. | 204,033 | 3,607,303 | ||||||
Intuit, Inc. | 100,585 | 51,392,900 | ||||||
Manhattan Associates, Inc.(a)(b) | 20,029 | 3,958,932 | ||||||
Microsoft Corp. | 2,384,498 | 752,905,243 | ||||||
NCR Corp.(a) | 102,271 | 2,758,249 | ||||||
Oracle Corp. | 493,216 | 52,241,439 | ||||||
Roper Technologies, Inc. | 81,542 | 39,489,160 | ||||||
Salesforce, Inc.(a) | 744,274 | 150,923,882 | ||||||
Teradata Corp.(a) | 41,446 | 1,865,899 | ||||||
Tyler Technologies, Inc.(a) | 17,027 | 6,574,806 | ||||||
|
| |||||||
1,205,190,784 | ||||||||
Specialized REITs — 1.5% | ||||||||
American Tower Corp. | 167,420 | 27,532,219 | ||||||
Crown Castle, Inc. | 331,389 | 30,497,730 | ||||||
CubeSmart | 80,597 | 3,073,164 | ||||||
Digital Realty Trust, Inc. | 231,314 | 27,993,620 | ||||||
EPR Properties | 59,577 | 2,474,829 | ||||||
Equinix, Inc. | 71,498 | 51,926,137 | ||||||
Extra Space Storage, Inc. | 81,047 | 9,853,748 | ||||||
Gaming & Leisure Properties, Inc. | 68,600 | 3,124,730 | ||||||
Iron Mountain, Inc. | 83,535 | 4,966,156 | ||||||
Lamar Advertising Co., Class A | 28,955 | 2,416,874 | ||||||
National Storage Affiliates Trust | 33,781 | 1,072,209 | ||||||
PotlatchDeltic Corp. | 26,198 | 1,189,127 | ||||||
Public Storage | 45,689 | 12,039,965 | ||||||
Rayonier, Inc. | 49,685 | 1,414,035 | ||||||
SBA Communications Corp., Class A | 36,882 | 7,382,670 | ||||||
VICI Properties, Inc. | 331,138 | 9,636,116 | ||||||
Weyerhaeuser Co. | 242,584 | 7,437,625 | ||||||
|
| |||||||
204,030,954 | ||||||||
Specialty Retail — 1.9% | ||||||||
AutoNation, Inc.(a)(b) | 11,149 | 1,687,959 | ||||||
Bath & Body Works, Inc. | 175,286 | 5,924,667 | ||||||
Best Buy Co., Inc. | 148,401 | 10,309,417 | ||||||
CarMax, Inc.(a)(b) | 121,166 | 8,570,071 |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
Dick’s Sporting Goods, Inc. | 23,872 | $ | 2,592,022 | |||||
Five Below, Inc.(a)(b) | 12,969 | 2,086,712 | ||||||
GameStop Corp., Class A(a)(b) | 205,992 | 3,390,628 | ||||||
Gap, Inc. (The) | 170,764 | 1,815,221 | ||||||
Home Depot, Inc. (The) | 361,076 | 109,102,724 | ||||||
Lithia Motors, Inc., Class A | 21,080 | 6,225,556 | ||||||
Lowe’s Cos., Inc. | 138,810 | 28,850,270 | ||||||
Penske Automotive Group, Inc. | 14,997 | 2,505,399 | ||||||
RH(a) | 11,877 | 3,139,804 | ||||||
Ross Stores, Inc. | 260,306 | 29,401,563 | ||||||
TJX Cos., Inc. (The) | 316,146 | 28,099,057 | ||||||
Valvoline, Inc. | 57,453 | 1,852,285 | ||||||
Williams-Sonoma, Inc. | 26,165 | 4,066,041 | ||||||
|
| |||||||
249,619,396 | ||||||||
Technology Hardware, Storage & Peripherals — 0.5% | ||||||||
Hewlett Packard Enterprise Co. | 985,078 | 17,110,805 | ||||||
HP, Inc. | 664,247 | 17,071,148 | ||||||
NetApp, Inc. | 161,918 | 12,286,338 | ||||||
Seagate Technology Holdings PLC | 147,176 | 9,706,257 | ||||||
Super Micro Computer, Inc.(a) | 7,001 | 1,919,814 | ||||||
Western Digital Corp.(a) | 244,068 | 11,136,823 | ||||||
|
| |||||||
69,231,185 | ||||||||
Textiles, Apparel & Luxury Goods — 0.9% | ||||||||
Capri Holdings Ltd.(a) | 89,155 | 4,690,445 | ||||||
Carter’s, Inc. | 29,162 | 2,016,552 | ||||||
Columbia Sportswear Co. | 26,689 | 1,977,655 | ||||||
NIKE, Inc., Class B | 936,125 | 89,512,273 | ||||||
PVH Corp. | 49,178 | 3,762,609 | ||||||
Ralph Lauren Corp., Class A | 30,860 | 3,582,537 | ||||||
Skechers U.S.A., Inc., Class A(a) | 103,893 | 5,085,562 | ||||||
Tapestry, Inc. | 180,350 | 5,185,063 | ||||||
Under Armour, Inc., Class A(a) | 142,284 | 974,645 | ||||||
Under Armour, Inc., Class C, NVS(a) | 148,565 | 947,845 | ||||||
VF Corp. | 253,763 | 4,483,992 | ||||||
|
| |||||||
122,219,178 | ||||||||
Tobacco — 0.6% | ||||||||
Altria Group, Inc. | 650,904 | 27,370,513 | ||||||
Philip Morris International, Inc. | 545,657 | 50,516,925 | ||||||
|
| |||||||
77,887,438 | ||||||||
Trading Companies & Distributors — 0.3% | ||||||||
Fastenal Co. | 222,846 | 12,176,305 | ||||||
GATX Corp. | 12,733 | 1,385,732 | ||||||
MSC Industrial Direct Co., Inc., Class A | 17,804 | 1,747,463 | ||||||
United Rentals, Inc. | 52,133 | 23,176,768 | ||||||
WESCO International, Inc. | 19,024 | 2,736,031 | ||||||
|
| |||||||
41,222,299 | ||||||||
Water Utilities — 0.1% | ||||||||
American Water Works Co., Inc. | 149,142 | 18,468,254 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.1% | ||||||||
T-Mobile U.S., Inc.(a) | 126,268 | 17,683,833 | ||||||
|
| |||||||
Total Long-Term Investments — 99.7% |
| 13,226,064,163 | ||||||
|
|
SCHEDULES OF INVESTMENTS | 57 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Short-Term Securities | ||||||||
Money Market Funds — 1.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(e)(f) | 155,467,363 | $ | 155,529,550 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(e) | 101,731,593 | 101,731,593 | ||||||
|
| |||||||
Total Short-Term Securities — 1.9% |
| 257,261,143 | ||||||
|
| |||||||
Total Investments — 101.6% |
| 13,483,325,306 | ||||||
Liabilities in Excess of Other Assets — (1.6)% |
| (217,565,595 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 13,265,759,711 | |||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Annualized 7-day yield as of period end. |
(f) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 96,361,854 | $ | 59,142,593 | (a) | $ | — | $ | 4,155 | $ | 20,948 | $ | 155,529,550 | 155,467,363 | $ | 302,769 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 23,677,943 | 78,053,650 | (a) | — | — | — | 101,731,593 | 101,731,593 | 683,465 | — | ||||||||||||||||||||||||||
BlackRock, Inc. | 77,499,486 | 3,829,240 | (9,810,141 | ) | (329,845 | ) | (1,855,273 | ) | 69,333,467 | 107,246 | 1,156,135 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (325,690 | ) | $ | (1,834,325 | ) | $ | 326,594,610 | $ | 2,142,369 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
S&P 500 E-Mini Index | 121 | 12/15/23 | $ | 26,169 | $ | (885,566 | ) | |||||||||
S&P Mid 400 E-Mini Index | 45 | 12/15/23 | 11,342 | (311,440 | ) | |||||||||||
|
| |||||||||||||||
$ | (1,197,006 | ) | ||||||||||||||
|
|
58 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Core S&P U.S. Value ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 1,197,006 | $ | — | $ | — | $ | — | $ | 1,197,006 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 3,626,242 | $ | — | $ | — | $ | — | $ | 3,626,242 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (2,904,741 | ) | $ | — | $ | — | $ | — | $ | (2,904,741 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $38,281,719 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 13,226,064,163 | $ | — | $ | — | $ | 13,226,064,163 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 257,261,143 | — | — | 257,261,143 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
$ | 13,483,325,306 | $ | — | $ | — | $ | 13,483,325,306 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (1,197,006 | ) | $ | — | $ | — | $ | (1,197,006 | ) | ||||||
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|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 59 |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares Core S&P Mid-Cap ETF | iShares Core S&P Small-Cap ETF | iShares Core S&P U.S. Growth ETF | iShares Core S&P U.S. Value ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at value — unaffiliated(a)(b) | $ | 70,359,091,626 | $ | 5,839,163,260 | $ | 13,412,583,905 | $ | 13,156,730,696 | ||||||||
Investments, at value — affiliated(c) | 4,512,143,589 | 64,658,751,523 | 158,884,495 | 326,594,610 | ||||||||||||
Cash | 141,544,438 | 14,303,405 | 6,944 | 3,354,795 | ||||||||||||
Cash pledged: | ||||||||||||||||
Collateral — OTC derivatives | 13,000,000 | 78,680,000 | — | — | ||||||||||||
Futures contracts | 7,156,800 | 19,680,000 | 1,159,620 | 2,101,190 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 86,136,895 | 495,505,061 | 3,546,839 | 21,828,298 | ||||||||||||
Securities lending income — affiliated | 917,023 | 1,021,792 | 38,545 | 37,592 | ||||||||||||
Capital shares sold | 1,256,475 | 1,083,995 | — | 62,025 | ||||||||||||
Dividends — unaffiliated | 79,396,999 | 83,388,181 | 7,419,984 | 11,602,853 | ||||||||||||
Dividends — affiliated | 1,381,890 | 6,248,033 | 101,629 | 143,435 | ||||||||||||
Variation margin on futures contracts | — | — | 7,020 | — | ||||||||||||
Unrealized appreciation on OTC swaps | 534,935 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 75,202,560,670 | 71,197,825,250 | 13,583,748,981 | 13,522,455,494 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Cash received: | ||||||||||||||||
Collateral — OTC derivatives | 1,610,000 | — | — | — | ||||||||||||
Collateral on securities loaned | 3,733,434,847 | 3,774,946,841 | 92,074,739 | 155,462,157 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 321,830,046 | 536,785,146 | 8,054,929 | 21,828,298 | ||||||||||||
Swaps | 3,523,445 | 34,933,218 | — | — | ||||||||||||
Capital shares redeemed | 418,825 | 1,144,242 | — | 108,544 | ||||||||||||
Income dividend distributions | 323,199,273 | 323,334,412 | 49,481,774 | 78,738,540 | ||||||||||||
Investment advisory fees | 2,977,192 | 3,364,109 | 450,230 | 454,669 | ||||||||||||
Variation margin on futures contracts | 546,700 | 1,499,925 | 40,800 | 103,575 | ||||||||||||
Unrealized depreciation on OTC swaps | 10,366,896 | 45,783,312 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 4,397,907,224 | 4,721,791,205 | 150,102,472 | 256,695,783 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Commitments and contingent liabilities | ||||||||||||||||
NET ASSETS | $ | 70,804,653,446 | $ | 66,476,034,045 | $ | 13,433,646,509 | $ | 13,265,759,711 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 66,796,207,137 | $ | 69,122,043,616 | $ | 11,700,308,386 | $ | 13,253,427,910 | ||||||||
Accumulated earnings (loss) | 4,008,446,309 | (2,646,009,571 | ) | 1,733,338,123 | 12,331,801 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 70,804,653,446 | $ | 66,476,034,045 | $ | 13,433,646,509 | $ | 13,265,759,711 | ||||||||
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|
|
|
|
|
| |||||||||
NET ASSET VALUE | ||||||||||||||||
Shares outstanding | 283,950,000 | 704,900,000 | 141,700,000 | 177,850,000 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Net asset value | $ | 249.36 | $ | 94.31 | $ | 94.80 | $ | 74.59 | ||||||||
|
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|
|
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| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
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|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
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|
|
|
|
|
| |||||||||
(a) Investments, at cost — unaffiliated | $ | 63,329,536,901 | $ | 6,273,932,826 | $ | 10,369,882,779 | $ | 12,488,014,036 | ||||||||
(b) Securities loaned, at value | $ | 3,636,132,354 | $ | 3,650,712,742 | $ | 89,622,064 | $ | 151,398,503 | ||||||||
(c) Investments, at cost — affiliated | $ | 4,509,869,176 | $ | 61,541,430,992 | $ | 158,834,331 | $ | 332,718,679 |
See notes to financial statements.
60 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statement of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Core S&P Mid-Cap ETF | iShares Core S&P Small-Cap ETF | iShares Core S&P U.S. Growth ETF | iShares Core S&P U.S. Value ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — unaffiliated | $ | 589,479,376 | $ | 54,445,208 | $ | 84,260,382 | $ | 133,545,952 | ||||||||
Dividends — affiliated | 5,628,797 | 586,667,621 | 532,848 | 1,839,600 | ||||||||||||
Securities lending income — affiliated — net | 8,486,238 | 7,997,577 | 214,227 | 302,769 | ||||||||||||
Foreign taxes withheld | — | (505,238 | ) | (29,835 | ) | (24,886 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 603,594,411 | 648,605,168 | 84,977,622 | 135,663,435 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory | 17,319,189 | 20,318,701 | 2,646,966 | 2,743,236 | ||||||||||||
Interest expense | 1,507 | 46,781 | 21 | 484 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 17,320,696 | 20,365,482 | 2,646,987 | 2,743,720 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 586,273,715 | 628,239,686 | 82,330,635 | 132,919,715 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — unaffiliated | (1,582,883,957 | ) | 176,732,439 | (21,416,214 | ) | (60,273,723 | ) | |||||||||
Investments — affiliated | 179,859 | (2,988,036,128 | ) | 5,597 | (1,578,020 | ) | ||||||||||
Futures contracts | 8,802,161 | 13,714,507 | 2,952,715 | 3,626,242 | ||||||||||||
In-kind redemptions — unaffiliated(a) | 603,056,869 | 50,285,197 | 176,845,506 | 183,454,488 | ||||||||||||
In-kind redemptions — affiliated(a) | — | 966,072,385 | — | 1,252,330 | ||||||||||||
Swaps | (5,638,567 | ) | 12,632,405 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(976,483,635 | ) | (1,768,599,195 | ) | 158,387,604 | 126,481,317 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — unaffiliated | 345,882,499 | (494,222,481 | ) | 673,851,635 | 21,678,453 | |||||||||||
Investments — affiliated | 252,984 | 410,290,588 | 24,468 | (1,834,325 | ) | |||||||||||
Futures contracts | (8,346,494 | ) | (13,537,579 | ) | (2,161,172 | ) | (2,904,741 | ) | ||||||||
Swaps | (7,431,220 | ) | (21,936,449 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
330,357,769 | (119,405,921 | ) | 671,714,931 | 16,939,387 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | (646,125,866 | ) | (1,888,005,116 | ) | 830,102,535 | 143,420,704 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (59,852,151 | ) | $ | (1,259,765,430 | ) | $ | 912,433,170 | $ | 276,340,419 | ||||||
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|
|
|
|
|
|
|
(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
FINANCIAL STATEMENTS | 61 |
Statements of Changes in Net Assets
iShares Core S&P Mid-Cap ETF | iShares Core S&P Small-Cap ETF | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Six Months 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 586,273,715 | $ | 1,015,512,367 | $ | 628,239,686 | $ | 1,058,965,518 | ||||||||||||
Net realized gain (loss) | (976,483,635 | ) | 1,609,302,685 | (1,768,599,195 | ) | 972,769,988 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 330,357,769 | (5,947,641,200 | ) | (119,405,921 | ) | (8,677,638,044 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net decrease in net assets resulting from operations | (59,852,151 | ) | (3,322,826,148 | ) | (1,259,765,430 | ) | (6,645,902,538 | ) | ||||||||||||
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|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (523,062,910 | ) | (1,068,069,845 | ) | (563,767,987 | ) | (1,012,107,695 | ) | ||||||||||||
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|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase in net assets derived from capital share transactions | 4,879,291,905 | 4,875,353,742 | 1,542,741,394 | 2,344,556,736 | ||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
NET ASSETS | ||||||||||||||||||||
Total increase (decrease) in net assets | 4,296,376,844 | 484,457,749 | (280,792,023 | ) | (5,313,453,497 | ) | ||||||||||||||
Beginning of period | 66,508,276,602 | 66,023,818,853 | 66,756,826,068 | 72,070,279,565 | ||||||||||||||||
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|
|
|
|
|
| |||||||||||||
End of period | $ | 70,804,653,446 | $ | 66,508,276,602 | $ | 66,476,034,045 | $ | 66,756,826,068 | ||||||||||||
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|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
62 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
iShares Core S&P U.S. Growth ETF | iShares Core S&P U.S. Value ETF | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 82,330,635 | $ | 125,491,843 | $ | 132,919,715 | $ | 265,989,995 | ||||||||||||
Net realized gain (loss) | 158,387,604 | (542,861,646 | ) | 126,481,317 | 826,914,609 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 671,714,931 | (1,437,182,389 | ) | 16,939,387 | (1,119,955,183 | ) | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 912,433,170 | (1,854,552,192 | ) | 276,340,419 | (27,050,579 | ) | ||||||||||||||
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|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (80,252,021 | ) | (124,923,098 | ) | (128,141,246 | ) | (267,844,515 | ) | ||||||||||||
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|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 278,002,912 | 1,445,604,490 | (166,425,034 | ) | 1,455,025,976 | |||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
NET ASSETS | ||||||||||||||||||||
Total increase (decrease) in net assets | 1,110,184,061 | (533,870,800 | ) | (18,225,861 | ) | 1,160,130,882 | ||||||||||||||
Beginning of period | 12,323,462,448 | 12,857,333,248 | 13,283,985,572 | 12,123,854,690 | ||||||||||||||||
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|
|
|
|
| |||||||||||||
End of period | $ | 13,433,646,509 | $ | 12,323,462,448 | $ | 13,265,759,711 | $ | 13,283,985,572 | ||||||||||||
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|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 63 |
(For a share outstanding throughout each period)
iShares Core S&P Mid-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 250.17 | $ | 268.39 | $ | 260.16 | $ | 143.87 | $ | 189.34 | $ | 187.51 | ||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 2.16 | 3.99 | 3.41 | 2.74 | 3.12 | 2.85 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.08 | ) | (18.04 | ) | 8.35 | 116.36 | (45.14 | ) | 1.84 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 1.08 | (14.05 | ) | 11.76 | 119.10 | (42.02 | ) | 4.69 | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(c) | (1.89 | ) | (4.17 | ) | (3.53 | ) | (2.81 | ) | (3.45 | ) | (2.86 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 249.36 | $ | 250.17 | $ | 268.39 | $ | 260.16 | $ | 143.87 | $ | 189.34 | ||||||||||||
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|
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|
|
| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 0.43 | %(e) | (5.13 | )% | 4.51 | % | 83.36 | % | (22.53 | )% | 2.50 | % | ||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.05 | %(g) | 0.05 | % | 0.05 | % | 0.05 | % | 0.07 | % | 0.07 | % | ||||||||||||
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|
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|
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| |||||||||||||
Net investment income | 1.69 | %(g) | 1.62 | % | 1.26 | % | 1.36 | % | 1.62 | % | 1.50 | % | ||||||||||||
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 70,804,653 | $ | 66,508,277 | $ | 66,023,819 | $ | 61,137,875 | $ | 35,722,456 | $ | 48,206,329 | ||||||||||||
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|
| |||||||||||||
Portfolio turnover rate(h)(i) | 11 | % | 18 | % | 16 | % | 20 | % | 15 | % | 17 | % | ||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Excludes underlying investments in total return swaps. |
See notes to financial statements.
64 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Core S&P Small-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 96.76 | $ | 107.93 | $ | 108.34 | $ | 56.22 | $ | 77.13 | $ | 77.05 | ||||||||||||
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|
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|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.91 | 1.57 | 1.13 | 1.03 | 1.06 | 1.09 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (2.55 | ) | (11.24 | ) | 0.12 | 52.13 | (20.77 | ) | 0.11 | |||||||||||||||
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|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (1.64 | ) | (9.67 | ) | 1.25 | 53.16 | (19.71 | ) | 1.20 | |||||||||||||||
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|
|
|
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|
| |||||||||||||
Distributions from net investment income(c) | (0.81 | ) | (1.50 | ) | (1.66 | ) | (1.04 | ) | (1.20 | ) | (1.12 | ) | ||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 94.31 | $ | 96.76 | $ | 107.93 | $ | 108.34 | $ | 56.22 | $ | 77.13 | ||||||||||||
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| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | (1.71 | )%(e) | (8.90 | )% | 1.12 | % | 95.23 | %(f) | (25.89 | )% | 1.53 | % | ||||||||||||
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| |||||||||||||
Ratios to Average Net Assets(g) | ||||||||||||||||||||||||
Total expenses | 0.06 | %(h) | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | 0.07 | % | ||||||||||||
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|
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|
| |||||||||||||
Net investment income | 1.86 | %(h) | 1.60 | % | 1.02 | % | 1.28 | % | 1.36 | % | 1.35 | % | ||||||||||||
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 66,476,034 | $ | 66,756,826 | $ | 72,070,280 | $ | 68,273,012 | $ | 31,863,332 | $ | 43,064,083 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(i)(j) | 13 | % | 19 | % | 16 | % | 20 | % | 16 | % | 14 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Includes a payment received from an affiliate, which had no impact on the Fund’s total return. |
(g) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Excludes underlying investments in total return swaps. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 65 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Core S&P U.S. Growth ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 88.82 | $ | 105.47 | $ | 90.74 | $ | 57.16 | $ | 60.31 | $ | 54.56 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.59 | 0.96 | 0.72 | 0.76 | 0.92 | 0.81 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 5.96 | (16.67 | ) | 14.73 | 33.62 | (2.97 | ) | 5.68 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 6.55 | (15.71 | ) | 15.45 | 34.38 | (2.05 | ) | 6.49 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(c) | (0.57 | ) | (0.94 | ) | (0.72 | ) | (0.80 | ) | (1.10 | ) | (0.74 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 94.80 | $ | 88.82 | $ | 105.47 | $ | 90.74 | $ | 57.16 | $ | 60.31 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 7.39 | %(e) | (14.86 | )% | 17.03 | % | 60.34 | % | (3.54 | )% | 11.95 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.04 | %(g) | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.24 | %(g) | 1.10 | % | 0.69 | % | 0.96 | % | 1.44 | % | 1.41 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 13,433,647 | $ | 12,323,462 | $ | 12,857,333 | $ | 10,461,747 | $ | 6,893,329 | $ | 5,985,790 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h) | 2 | % | 36 | % | 15 | % | 14 | % | 35 | % | 31 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
66 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Core S&P U.S. Value ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 73.78 | $ | 75.80 | $ | 68.82 | $ | 46.23 | $ | 54.82 | $ | 53.08 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.74 | 1.55 | 1.50 | 1.43 | 1.45 | 1.37 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.79 | (2.02 | ) | 6.93 | 22.60 | (8.57 | ) | 1.68 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 1.53 | (0.47 | ) | 8.43 | 24.03 | (7.12 | ) | 3.05 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(c) | (0.72 | ) | (1.55 | ) | (1.45 | ) | (1.44 | ) | (1.47 | ) | (1.31 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 74.59 | $ | 73.78 | $ | 75.80 | $ | 68.82 | $ | 46.23 | $ | 54.82 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 2.07 | %(e) | (0.46 | )% | 12.33 | % | 52.59 | % | (13.34 | )% | 5.83 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.04 | %(g) | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.94 | %(g) | 2.18 | % | 2.04 | % | 2.48 | % | 2.52 | % | 2.53 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 13,265,760 | $ | 13,283,986 | $ | 12,123,855 | $ | 9,084,867 | $ | 5,270,383 | $ | 5,208,349 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h) | 2 | % | 31 | % | 20 | % | 25 | % | 34 | % | 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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 67 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Core S&P Mid-Cap | Diversified | |
Core S&P Small-Cap | Diversified | |
Core S&P U.S. Growth(a) | Diversified | |
Core S&P U.S. Value | Diversified |
(a) | The Fund intends to be diversified in approximately the same proportion as its underlying index is diversified. The Fund may become non-diversified, as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its underlying index. Shareholder approval will not be sought if the Fund crosses from diversified to non-diversified status due solely to a change in its relative market capitalization or index weighting of one or more constituents of its underlying index. |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
ForeignTaxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise
68 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
• | Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy
NOTES TO FINANCIAL STATEMENTS | 69 |
Notes to Financial Statements (unaudited) (continued)
or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | | Securities Loaned at Value |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received, at Fair Value |
(a) | | Net Amount | (b) | ||||
Core S&P Mid-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 338,378,291 | $ | (338,378,291 | ) | $ | — | $ | — | |||||||
Barclays Capital, Inc. | 35,913,422 | (35,913,422 | ) | — | — | |||||||||||
BMO Capital Markets Corp. | 64,273 | (64,273 | ) | — | — | |||||||||||
BNP Paribas SA | 202,797,388 | (202,797,388 | ) | — | — | |||||||||||
BofA Securities, Inc. | 244,752,572 | (244,752,572 | ) | — | — | |||||||||||
Citadel Clearing LLC | 85,295,997 | (85,295,997 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 173,710,216 | (173,710,216 | ) | — | — | |||||||||||
Credit Suisse Securities (USA) LLC | 44,191 | (44,191 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 366,665,476 | (366,665,476 | ) | — | — | |||||||||||
HSBC Bank PLC | 110,633,856 | (110,633,856 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 365,571,097 | (365,571,097 | ) | — | — | |||||||||||
Jefferies LLC | 6,822,216 | (6,822,216 | ) | — | — | |||||||||||
Morgan Stanley | 435,219,738 | (435,219,738 | ) | — | — | |||||||||||
National Financial Services LLC | 66,686,663 | (66,686,663 | ) | — | — | |||||||||||
Natixis SA | 38,734,737 | (38,734,737 | ) | — | — | |||||||||||
Nomura Securities International, Inc. | 82,050 | (82,050 | ) | — | — | |||||||||||
RBC Capital Market LLC | 324,018,623 | (324,018,623 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. | 182,815,554 | (182,815,554 | ) | — | — | |||||||||||
Scotia Capital, Inc. | 340,070,677 | (340,070,677 | ) | — | — | |||||||||||
SG Americas Securities LLC | 30,282,576 | (30,282,576 | ) | — | — | |||||||||||
State Street Bank & Trust Co. | 13,736,345 | (13,736,345 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 146,562,348 | (146,562,348 | ) | — | — | |||||||||||
UBS AG | 69,621,688 | (69,621,688 | ) | — | — | |||||||||||
UBS Securities LLC | 14,975,303 | (14,975,303 | ) | — | — | |||||||||||
Virtu Americas LLC | 8,387,368 | (8,387,368 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. | 30,648,496 | (30,648,496 | ) | — | — | |||||||||||
Wells Fargo Securities LLC | 3,641,193 | (3,641,193 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 3,636,132,354 | $ | (3,636,132,354 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Core S&P Small-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 187,050,479 | $ | (187,050,479 | ) | $ | — | $ | — | |||||||
Barclays Capital, Inc. | 14,648,787 | (14,648,787 | ) | — | — | |||||||||||
BMO Capital Markets Corp. | 121,011 | (121,011 | ) | — | — | |||||||||||
BNP Paribas SA | 358,023,938 | (358,023,938 | ) | — | — | |||||||||||
BofA Securities, Inc. | 116,743,262 | (116,743,262 | ) | — | — | |||||||||||
Citadel Clearing LLC | 20,052,386 | (20,052,386 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 83,847,902 | (83,847,902 | ) | — | — | |||||||||||
Credit Suisse Securities (USA) LLC | 10,156,800 | (10,156,800 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 615,418,872 | (615,418,872 | ) | — | — | |||||||||||
HSBC Bank PLC | 52,123,718 | (52,123,718 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 528,530,430 | (528,530,430 | ) | — | — | |||||||||||
Jefferies LLC | 21,390,574 | (21,390,574 | ) | — | — | |||||||||||
Morgan Stanley | 797,100,878 | (797,100,878 | ) | — | — | |||||||||||
National Financial Services LLC | 81,316,491 | (81,316,491 | ) | — | — | |||||||||||
Natixis SA | 30,364,261 | (30,364,261 | ) | — | — | |||||||||||
Nomura Securities International, Inc. | 5,995,640 | (5,995,640 | ) | — | — | |||||||||||
Pershing LLC | 1,171,859 | (1,171,859 | ) | — | — | |||||||||||
RBC Capital Market LLC | 181,515,136 | (181,515,136 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. | 70,524,804 | (70,524,804 | ) | — | — | |||||||||||
SG Americas Securities LLC | 4,592,972 | (4,592,972 | ) | — | — | |||||||||||
State Street Bank & Trust Co. | 162,430,811 | (162,430,811 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 133,250,946 | (133,250,946 | ) | — | — | |||||||||||
UBS AG | 97,187,383 | (97,187,383 | ) | — | — | |||||||||||
UBS Securities LLC | 13,016,999 | (13,016,999 | ) | — | — | |||||||||||
Virtu Americas LLC | 14,097,711 | (14,097,711 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. | 37,178,902 | (37,178,902 | ) | — | — | |||||||||||
Wells Fargo Securities LLC | 12,859,790 | (12,859,790 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 3,650,712,742 | $ | (3,650,712,742 | ) | $ | — | $ | — | ||||||||
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|
|
|
|
|
|
70 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
iShares ETF and Counterparty | | Securities Loaned at Value |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received, at Fair Value |
(a) | | Net Amount | (b) | ||||
Core S&P U.S. Growth | ||||||||||||||||
Barclays Bank PLC | $ | 5,096,899 | $ | (5,096,899 | ) | $ | — | $ | — | |||||||
Barclays Capital, Inc. | 1,310,974 | (1,310,974 | ) | — | — | |||||||||||
BofA Securities, Inc. | 1,715,295 | (1,715,295 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 27,590,135 | (27,590,135 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 10,247,130 | (10,247,130 | ) | — | — | |||||||||||
HSBC Bank PLC | 2,770,420 | (2,770,420 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 2,608,116 | (2,608,116 | ) | — | — | |||||||||||
Jefferies LLC | 1,507,074 | (1,507,074 | ) | — | — | |||||||||||
Morgan Stanley | 1,526,548 | (1,526,548 | ) | — | — | |||||||||||
National Financial Services LLC | 927,463 | (927,463 | ) | — | — | |||||||||||
Natixis SA | 382,373 | (382,373 | ) | — | — | |||||||||||
Nomura Securities International, Inc. | 19,100 | (19,100 | ) | — | — | |||||||||||
RBC Capital Market LLC | 3,744,409 | (3,735,156 | ) | — | 9,253 | |||||||||||
Scotia Capital (USA), Inc. | 5,762,074 | (5,762,074 | ) | — | — | |||||||||||
Scotia Capital, Inc. | 1,056,879 | (1,056,879 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 22,940,165 | (22,940,165 | ) | — | — | |||||||||||
UBS Securities LLC | 358,400 | (358,400 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. | 58,610 | (58,610 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 89,622,064 | $ | (89,612,811 | ) | $ | — | $ | 9,253 | ||||||||
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|
|
|
|
|
|
| |||||||||
Core S&P U.S. Value | ||||||||||||||||
Barclays Bank PLC | $ | 27,290,940 | $ | (27,290,940 | ) | $ | — | $ | — | |||||||
BNP Paribas SA | 12,816,141 | (12,816,141 | ) | — | — | |||||||||||
BofA Securities, Inc. | 3,516,373 | (3,516,373 | ) | — | — | |||||||||||
Citadel Clearing LLC | 5,744,985 | (5,744,985 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 20,152,613 | (20,152,613 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 13,135,118 | (13,135,118 | ) | — | — | |||||||||||
HSBC Bank PLC | 5,255,952 | (5,255,952 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 7,599,953 | (7,599,953 | ) | — | — | |||||||||||
Morgan Stanley | 7,599,308 | (7,599,308 | ) | — | — | |||||||||||
National Financial Services LLC | 127 | (127 | ) | — | — | |||||||||||
Natixis SA | 1,999,959 | (1,999,959 | ) | — | — | |||||||||||
RBC Capital Market LLC | 4,482,655 | (4,468,079 | ) | — | 14,576 | |||||||||||
Scotia Capital (USA), Inc. | 7,943,199 | (7,943,199 | ) | — | — | |||||||||||
Scotia Capital, Inc. | 16,083,979 | (16,083,979 | ) | — | — | |||||||||||
SG Americas Securities LLC | 197,660 | (197,660 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 7,746,110 | (7,746,110 | ) | — | — | |||||||||||
UBS AG | 9,642,919 | (9,642,919 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. | 190,512 | (190,512 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 151,398,503 | $ | (151,383,927 | ) | $ | — | $ | 14,576 | ||||||||
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|
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|
|
(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities. |
(b) | The market value of the loaned securities is determined as of September 30, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on 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 loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
NOTES TO FINANCIAL STATEMENTS | 71 |
Notes to Financial Statements (unaudited) (continued)
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Funds and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statements of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statements of Assets and Liabilities. Payments received or paid are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contract is the premium received or paid. Total return swaps are entered into by the iShares Core S&P Mid-Cap ETF and iShares Core S&P Small-Cap ETF to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).
Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.
Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.
Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty.
Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.
72 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |||
Core S&P Mid-Cap | 0.05% | |||
Core S&P Small-Cap | 0.06 | |||
Core S&P U.S. Growth | 0.04 | |||
Core S&P U.S. Value | 0.04 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
| ||||
iShares ETF | Amounts | |||
| ||||
Core S&P Mid-Cap | $ | 2,854,736 | ||
Core S&P Small-Cap | 2,691,518 | |||
Core S&P U.S. Growth | 86,887 | |||
Core S&P U.S. Value | 103,375 | |||
|
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
NOTES TO FINANCIAL STATEMENTS | 73 |
Notes to Financial Statements (unaudited) (continued)
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
| ||||||||||||
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
| ||||||||||||
Core S&P Mid-Cap | $ | 394,692,300 | $ | 2,369,932,440 | $ | (1,128,162,354 | ) | |||||
Core S&P Small-Cap | 2,070,606,255 | 631,566,110 | (81,076,271 | ) | ||||||||
Core S&P U.S. Growth | 75,228,330 | 36,765,288 | (5,866,637 | ) | ||||||||
Core S&P U.S. Value | 36,374,655 | 53,960,866 | (24,641,743 | ) | ||||||||
|
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
| ||||||||
iShares ETF | Purchases | Sales | ||||||
| ||||||||
Core S&P Mid-Cap | $ | 7,807,532,807 | $ | 7,790,873,979 | ||||
Core S&P Small-Cap | 8,968,899,938 | 9,021,601,535 | ||||||
Core S&P U.S. Growth | 285,272,301 | 275,611,998 | ||||||
Core S&P U.S. Value | 280,308,939 | 275,770,390 | ||||||
|
For the six months ended September 30, 2023, in-kind transactions were as follows:
| ||||||||
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
| ||||||||
Core S&P Mid-Cap | $ | 6,771,658,330 | $ | 1,971,082,135 | ||||
Core S&P Small-Cap | 4,744,933,533 | 3,234,438,389 | ||||||
Core S&P U.S. Growth | 687,198,792 | 410,299,421 | ||||||
Core S&P U.S. Value | 558,271,115 | 724,456,084 | ||||||
|
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains and qualified late-year losses as follows:
| ||||||||||||
iShares ETF | Non-Expiring Capital Loss Carryforwards | Qualified Late-Year Ordinary Losses | ||||||||||
| ||||||||||||
Core S&P Mid-Cap | $ 1,713,541,092 | $ 310,816 | ||||||||||
Core S&P Small-Cap | 2,941,893,594 | 111,666,576 | ||||||||||
Core S&P U.S. Growth | 1,457,321,766 | — | ||||||||||
Core S&P U.S. Value | 728,805,923 | — | ||||||||||
|
As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
| ||||||||||||||||
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Core S&P Mid-Cap | $ | 68,219,886,455 | $ | 12,581,638,914 | $ | (5,940,957,285 | ) | $ | 6,640,681,629 | |||||||
Core S&P Small-Cap | 68,350,762,661 | 11,797,317,468 | (9,702,389,195 | ) | 2,094,928,273 | |||||||||||
Core S&P U.S. Growth | 10,540,385,401 | 3,456,161,172 | (425,849,162 | ) | 3,030,312,010 | |||||||||||
Core S&P U.S. Value | 12,870,827,476 | 1,788,029,487 | (1,176,728,663 | ) | 611,300,824 | |||||||||||
|
74 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
NOTES TO FINANCIAL STATEMENTS | 75 |
Notes to Financial Statements (unaudited) (continued)
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
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Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||||||
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||
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Core S&P Mid-Cap | ||||||||||||||||||||
Shares sold | 26,050,000 | $ | 6,871,920,536 | 44,050,000 | $ | 10,833,257,889 | ||||||||||||||
Shares redeemed | (7,950,000 | ) | (1,992,628,631 | ) | (24,200,000 | ) | (5,957,904,147 | ) | ||||||||||||
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18,100,000 | $ | 4,879,291,905 | 19,850,000 | $ | 4,875,353,742 | |||||||||||||||
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Core S&P Small-Cap | ||||||||||||||||||||
Shares sold | 48,900,000 | $ | 4,791,957,669 | 109,400,000 | $ | 10,712,472,940 | ||||||||||||||
Shares redeemed | (33,900,000 | ) | (3,249,216,275 | ) | (87,250,000 | ) | (8,367,916,204 | ) | ||||||||||||
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15,000,000 | $ | 1,542,741,394 | 22,150,000 | $ | 2,344,556,736 | |||||||||||||||
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Core S&P U.S. Growth | ||||||||||||||||||||
Shares sold | 7,200,000 | $ | 689,293,463 | 32,150,000 | $ | 2,766,534,333 | ||||||||||||||
Shares redeemed | (4,250,000 | ) | (411,290,551 | ) | (15,300,000 | ) | (1,320,929,843 | ) | ||||||||||||
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2,950,000 | $ | 278,002,912 | 16,850,000 | $ | 1,445,604,490 | |||||||||||||||
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Core S&P U.S. Value | ||||||||||||||||||||
Shares sold | 7,300,000 | $ | 560,472,919 | 67,600,000 | $ | 4,795,462,207 | ||||||||||||||
Shares redeemed | (9,500,000 | ) | (726,897,953 | ) | (47,500,000 | ) | (3,340,436,231 | ) | ||||||||||||
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(2,200,000 | ) | $ | (166,425,034 | ) | 20,100,000 | $ | 1,455,025,976 | |||||||||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
76 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
iShares Core S&P Mid-Cap ETF, iShares Core S&P Small-Cap ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 77 |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares Core S&PU.S. Growth ETF, iShares Core S&PU.S. Value ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet
78 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 79 |
Board Review and Approval of Investment Advisory Contract (continued)
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
80 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share |
Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||||
Core S&P Mid-Cap | $ | 1.894569 | $ | — | $ | — | $ | 1.894569 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||||
Core S&P Small-Cap(a) | 0.799267 | — | 0.011120 | 0.810387 | 99 | — | 1 | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
SUPPLEMENTAL INFORMATION | 81 |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
82 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
CVR | Contingent Value Rights | |
NVS | Non-Voting Shares | |
REIT | Real Estate Investment Trust | |
S&P | Standard & Poor’s |
GLOSSARY OF TERMS USED IN THIS REPORT | 83 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representations regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-302-0923
SEPTEMBER 30, 2023 |
2023 Semi-Annual Report (Unaudited)
|
iShares Trust
· iShares Russell Top 200 ETF | IWL | NYSE Arca
· iShares Russell Top 200 Growth ETF | IWY | NYSE Arca
· iShares Russell Top 200 Value ETF | IWX | NYSE Arca
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023 | ||||||||
6-Month | 12-Month | |||||||
U.S. large cap equities | 5.18 | % | 21.62 | % | ||||
U.S. small cap equities | (0.19 | ) | 8.93 | |||||
International equities | (1.28 | ) | 25.65 | |||||
Emerging market equities | (2.05 | ) | 11.70 | |||||
3-month Treasury bills | 2.50 | 4.47 | ||||||
U.S. Treasury securities | (6.98 | ) | (2.90 | ) | ||||
U.S. investment grade bonds | (4.05 | ) | 0.64 | |||||
Tax-exempt municipal bonds | (4.05 | ) | 2.66 | |||||
U.S. high yield bonds | 2.22 | 10.28 | ||||||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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Fund Summary as of September 30, 2023 | iShares® Russell Top 200 ETF |
Investment Objective
The iShares Russell Top 200 ETF (the “Fund) seeks to track the investment results of an index composed of large-capitalization U.S. equities, as represented by the Russell Top 200® Index (the ”Index“). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 6.90 | % | 23.72 | % | 10.63 | % | 12.46 | % | 23.72 | % | 65.69 | % | 223.48 | % | ||||||||||||||
Fund Market | 6.97 | 23.57 | 10.62 | 12.45 | 23.57 | 65.61 | 223.42 | |||||||||||||||||||||
Index | 6.98 | 23.89 | 10.79 | 12.63 | 23.89 | 66.91 | 228.52 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ 1,000.00 | $ 1,069.00 | $ 0.78 | $ 1,000.00 | $ 1,024.25 | $ 0.76 | 0.15 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See ”Disclosure of Expenses“ for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Information Technology | 30.7 | % | ||
Health Care | 13.9 | |||
Financials | 12.6 | |||
Consumer Discretionary | 10.9 | |||
Communication Services | 10.1 | |||
Consumer Staples | 7.0 | |||
Industrials | 6.3 | |||
Energy | 4.4 | |||
Materials | 1.6 | |||
Utilities | 1.4 | |||
Real Estate | 1.1 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Apple Inc. | 8.5 | % | ||
Microsoft Corp. | 7.8 | |||
Amazon.com, Inc | 3.8 | |||
NVIDIA Corp. | 3.4 | |||
Alphabet, Inc., Class A | 2.6 | |||
Tesla, Inc. | 2.3 | |||
Alphabet, Inc., Class C, NVS | 2.2 | |||
Meta Platforms, Inc., Class A | 2.2 | |||
Berkshire Hathaway, Inc., Class B | 2.1 | |||
Exxon Mobil Corp. | 1.6 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of September 30, 2023 | iShares® Russell Top 200 Growth ETF |
Investment Objective
The iShares Russell Top 200 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 Russell Top 200 Growth Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 11.05 | % | 29.71 | % | 13.48 | % | 15.57 | % | 29.71 | % | 88.20 | % | 324.97 | % | ||||||||||||||
Fund Market | 11.11 | 29.75 | 13.48 | 15.57 | 29.75 | 88.18 | 325.07 | |||||||||||||||||||||
Index | 11.16 | 29.95 | 13.65 | 15.79 | 29.95 | 89.61 | 333.24 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,110.50 | $ | 1.06 | $ | 1,000.00 | $ | 1,024.00 | $ | 1.01 | 0.20 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Information Technology | 45.1 | % | ||
Consumer Discretionary | 16.5 | |||
Communication Services | 12.8 | |||
Health Care | 9.9 | |||
Financials | 5.9 | |||
Consumer Staples | 4.5 | |||
Industrials | 3.9 | |||
Other (each representing less than 1%) | 1.4 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Apple Inc. | 14.1 | % | ||
Microsoft Corp. | 12.9 | |||
Amazon.com, Inc | 6.3 | |||
NVIDIA Corp. | 5.7 | |||
Alphabet, Inc., Class A | 4.3 | |||
Tesla, Inc. | 3.8 | |||
Alphabet, Inc., Class C, NVS | 3.7 | |||
Meta Platforms, Inc., Class A | 3.7 | |||
Eli Lilly & Co. | 2.5 | |||
UnitedHealth Group, Inc. | 2.2 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 5 |
Fund Summary as of September 30, 2023 | iShares® Russell Top 200 Value ETF |
Investment Objective
The iShares Russell Top 200 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 Russell Top 200 Value Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 1.47 | % | 15.93 | % | 6.52 | % | 8.49 | % | 15.93 | % | 37.16 | % | 125.93 | % | ||||||||||||||
Fund Market | 1.54 | 15.77 | 6.51 | 8.49 | 15.77 | 37.09 | 125.84 | |||||||||||||||||||||
Index | 1.57 | 16.18 | 6.73 | 8.72 | 16.18 | 38.50 | 130.69 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,014.70 | $ | 1.01 | $ | 1,000.00 | $ | 1,024.00 | $ | 1.01 | 0.20 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Financials | 22.7 | % | ||
Health Care | 20.0 | |||
Energy | 11.0 | |||
Consumer Staples | 10.8 | |||
Industrials | 10.0 | |||
Information Technology | 8.8 | |||
Communication Services | 6.0 | |||
Utilities | 3.4 | |||
Materials | 3.1 | |||
Consumer Discretionary | 2.6 | |||
Real Estate | 1.6 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Berkshire Hathaway, Inc., Class B | 5.4 | % | ||
Exxon Mobil Corp. | 4.0 | |||
JPMorgan Chase & Co. | 3.5 | |||
Johnson & Johnson | 3.1 | |||
Chevron Corp. | 2.5 | |||
Procter & Gamble Co. (The) | 2.3 | |||
Walmart, Inc. | 1.9 | |||
Cisco Systems, Inc. | 1.8 | |||
Merck & Co., Inc. | 1.8 | |||
Bank of America Corp. | 1.6 |
(a) | Excludes money market funds. |
6 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
A B O U T F U N D P E R F O R M A N C E / D I S C L O S U R E O F E X P E N S E S | 7 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Russell Top 200 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 1.5% | ||||||||
Boeing Co. (The)(a) | 16,253 | $ | 3,115,375 | |||||
General Dynamics Corp. | 7,118 | 1,572,864 | ||||||
L3Harris Technologies, Inc. | 5,505 | 958,531 | ||||||
Lockheed Martin Corp. | 6,591 | 2,695,455 | ||||||
Northrop Grumman Corp. | 4,182 | 1,840,875 | ||||||
RTX Corp. | 42,594 | 3,065,490 | ||||||
|
| |||||||
13,248,590 | ||||||||
Air Freight & Logistics — 0.6% | ||||||||
FedEx Corp. | 6,748 | 1,787,680 | ||||||
United Parcel Service, Inc., Class B | 21,108 | 3,290,104 | ||||||
|
| |||||||
5,077,784 | ||||||||
Automobiles — 2.6% | ||||||||
Ford Motor Co. | 114,239 | 1,418,848 | ||||||
General Motors Co. | 39,999 | 1,318,767 | ||||||
Tesla, Inc.(a) | 80,425 | 20,123,944 | ||||||
|
| |||||||
22,861,559 | ||||||||
Banks — 3.2% | ||||||||
Bank of America Corp. | 203,032 | 5,559,016 | ||||||
Citigroup, Inc. | 56,682 | 2,331,331 | ||||||
JPMorgan Chase & Co. | 84,141 | 12,202,128 | ||||||
PNC Financial Services Group, Inc. (The) | 11,586 | 1,422,413 | ||||||
Truist Financial Corp. | 38,597 | 1,104,260 | ||||||
U.S. Bancorp | 44,826 | 1,481,948 | ||||||
Wells Fargo & Co. | 106,975 | 4,370,998 | ||||||
|
| |||||||
28,472,094 | ||||||||
Beverages — 1.9% | ||||||||
Coca-Cola Co. (The) | 113,524 | 6,355,074 | ||||||
Constellation Brands, Inc., Class A | 4,710 | 1,183,764 | ||||||
Keurig Dr Pepper, Inc. | 27,734 | 875,562 | ||||||
Monster Beverage Corp.(a) | 21,651 | 1,146,420 | ||||||
PepsiCo, Inc. | 40,156 | 6,804,033 | ||||||
|
| |||||||
16,364,853 | ||||||||
Biotechnology — 2.4% | ||||||||
AbbVie, Inc. | 51,437 | 7,667,199 | ||||||
Amgen, Inc. | 15,571 | 4,184,862 | ||||||
Gilead Sciences, Inc. | 36,387 | 2,726,842 | ||||||
Moderna, Inc.(a) | 9,685 | 1,000,363 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 3,026 | 2,490,277 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 7,509 | 2,611,180 | ||||||
|
| |||||||
20,680,723 | ||||||||
Broadline Retail — 3.8% | ||||||||
Amazon.com, Inc.(a) | 262,614 | 33,383,492 | ||||||
|
| |||||||
Building Products — 0.1% | ||||||||
Johnson Controls International PLC | 19,989 | 1,063,615 | ||||||
|
| |||||||
Capital Markets — 2.5% | ||||||||
BlackRock, Inc.(b) | 4,333 | 2,801,241 | ||||||
Blackstone, Inc., Class A, NVS | 20,765 | 2,224,762 | ||||||
Charles Schwab Corp. (The) | 43,301 | 2,377,225 | ||||||
CME Group, Inc., Class A | 10,453 | 2,092,900 | ||||||
Goldman Sachs Group, Inc. (The) | 9,411 | 3,045,117 | ||||||
Intercontinental Exchange, Inc. | 16,537 | 1,819,401 | ||||||
Moody’s Corp. | 4,619 | 1,460,389 | ||||||
Morgan Stanley | 35,043 | 2,861,962 | ||||||
S&P Global, Inc. | 9,351 | 3,416,949 | ||||||
|
| |||||||
22,099,946 | ||||||||
Chemicals — 1.3% | ||||||||
Air Products & Chemicals, Inc. | 6,456 | 1,829,630 |
Security | Shares | Value | ||||||
Chemicals (continued) | ||||||||
Dow, Inc. | 20,712 | $ | 1,067,911 | |||||
Ecolab, Inc. | 7,248 | 1,227,811 | ||||||
Linde PLC | 14,299 | 5,324,233 | ||||||
Sherwin-Williams Co. (The) | 6,919 | 1,764,691 | ||||||
|
| |||||||
11,214,276 | ||||||||
Commercial Services & Supplies — 0.2% | ||||||||
Waste Management, Inc. | 11,838 | 1,804,585 | ||||||
|
| |||||||
Communications Equipment — 1.0% | ||||||||
Arista Networks, Inc.(a) | 7,293 | 1,341,401 | ||||||
Cisco Systems, Inc. | 119,518 | 6,425,288 | ||||||
Motorola Solutions, Inc. | 4,811 | 1,309,747 | ||||||
|
| |||||||
9,076,436 | ||||||||
Consumer Finance — 0.4% | ||||||||
American Express Co. | 17,281 | 2,578,152 | ||||||
Capital One Financial Corp. | 11,032 | 1,070,656 | ||||||
|
| |||||||
3,648,808 | ||||||||
Consumer Staples Distribution & Retail — 1.9% | ||||||||
Costco Wholesale Corp. | 12,914 | 7,295,894 | ||||||
Dollar General Corp. | 6,373 | 674,263 | ||||||
Sysco Corp. | 14,763 | 975,096 | ||||||
Target Corp. | 13,455 | 1,487,719 | ||||||
Walmart, Inc. | 41,605 | 6,653,888 | ||||||
|
| |||||||
17,086,860 | ||||||||
Diversified Telecommunication Services — 0.8% | ||||||||
AT&T Inc. | 208,681 | 3,134,388 | ||||||
Verizon Communications, Inc. | 122,665 | 3,975,573 | ||||||
|
| |||||||
7,109,961 | ||||||||
Electric Utilities — 1.1% | ||||||||
American Electric Power Co., Inc. | 14,993 | 1,127,773 | ||||||
Duke Energy Corp. | 22,446 | 1,981,084 | ||||||
Exelon Corp. | 29,007 | 1,096,175 | ||||||
NextEra Energy, Inc. | 59,006 | 3,380,454 | ||||||
Southern Co. (The) | 31,838 | 2,060,555 | ||||||
|
| |||||||
9,646,041 | ||||||||
Electrical Equipment — 0.5% | ||||||||
Eaton Corp. PLC | 11,607 | 2,475,541 | ||||||
Emerson Electric Co. | 16,598 | 1,602,869 | ||||||
|
| |||||||
4,078,410 | ||||||||
Energy Equipment & Services — 0.3% | ||||||||
Schlumberger NV | 41,524 | 2,420,849 | ||||||
|
| |||||||
Entertainment — 1.3% | ||||||||
Activision Blizzard, Inc. | 21,158 | 1,981,024 | ||||||
Netflix, Inc.(a) | 12,782 | 4,826,483 | ||||||
Walt Disney Co. (The)(a) | 53,303 | 4,320,208 | ||||||
|
| |||||||
11,127,715 | ||||||||
Financial Services — 4.9% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 53,376 | 18,697,613 | ||||||
Fiserv, Inc.(a) | 17,687 | 1,997,923 | ||||||
Mastercard, Inc., Class A | 24,455 | 9,681,979 | ||||||
PayPal Holdings, Inc.(a) | 32,674 | 1,910,122 | ||||||
Visa, Inc., Class A | 47,203 | 10,857,162 | ||||||
|
| |||||||
43,144,799 | ||||||||
Food Products — 0.8% | ||||||||
Archer-Daniels-Midland Co. | 15,613 | 1,177,532 | ||||||
General Mills, Inc. | 17,097 | 1,094,037 | ||||||
Hershey Co. (The) | 4,287 | 857,743 |
8 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Kraft Heinz Co. (The) | 23,376 | $ | 786,369 | |||||
Mondelez International, Inc., Class A | 39,637 | 2,750,808 | ||||||
|
| |||||||
6,666,489 | ||||||||
Ground Transportation — 1.1% | ||||||||
CSX Corp. | 58,318 | 1,793,279 | ||||||
Norfolk Southern Corp. | 6,638 | 1,307,221 | ||||||
Uber Technologies, Inc.(a) | 56,528 | 2,599,723 | ||||||
Union Pacific Corp. | 17,767 | 3,617,894 | ||||||
|
| |||||||
9,318,117 | ||||||||
Health Care Equipment & Supplies — 2.3% | ||||||||
Abbott Laboratories | 50,458 | 4,886,857 | ||||||
Becton Dickinson & Co. | 8,245 | 2,131,580 | ||||||
Boston Scientific Corp.(a) | 41,923 | 2,213,534 | ||||||
Edwards Lifesciences Corp.(a) | 17,521 | 1,213,855 | ||||||
GE HealthCare Technologies, Inc. | 11,388 | 774,840 | ||||||
Intuitive Surgical, Inc.(a) | 10,180 | 2,975,512 | ||||||
Medtronic PLC | 38,715 | 3,033,707 | ||||||
Stryker Corp. | 10,354 | 2,829,438 | ||||||
|
| |||||||
20,059,323 | ||||||||
Health Care Providers & Services — 3.2% | ||||||||
Centene Corp.(a) | 15,762 | 1,085,687 | ||||||
Cigna Group (The) | 8,530 | 2,440,177 | ||||||
CVS Health Corp. | 37,323 | 2,605,892 | ||||||
Elevance Health, Inc. | 6,910 | 3,008,752 | ||||||
HCA Healthcare, Inc. | 5,949 | 1,463,335 | ||||||
Humana, Inc. | 3,639 | 1,770,446 | ||||||
McKesson Corp. | 3,945 | 1,715,483 | ||||||
UnitedHealth Group, Inc. | 27,095 | 13,661,028 | ||||||
|
| |||||||
27,750,800 | ||||||||
Hotels, Restaurants & Leisure — 1.9% | ||||||||
Airbnb, Inc., Class A(a)(c) | 11,796 | 1,618,529 | ||||||
Booking Holdings, Inc.(a) | 1,081 | 3,333,750 | ||||||
Chipotle Mexican Grill, Inc.(a) | 803 | 1,470,959 | ||||||
Las Vegas Sands Corp. | 9,624 | 441,164 | ||||||
Marriott International, Inc., Class A | 7,248 | 1,424,667 | ||||||
McDonald’s Corp. | 21,258 | 5,600,208 | ||||||
Starbucks Corp. | 32,885 | 3,001,414 | ||||||
|
| |||||||
16,890,691 | ||||||||
Household Products — 1.5% | ||||||||
Colgate-Palmolive Co. | 23,888 | 1,698,676 | ||||||
Kimberly-Clark Corp. | 9,825 | 1,187,351 | ||||||
Procter & Gamble Co. (The) | 68,623 | 10,009,351 | ||||||
|
| |||||||
12,895,378 | ||||||||
Industrial Conglomerates — 1.0% | ||||||||
3M Co. | 15,997 | 1,497,639 | ||||||
General Electric Co. | 31,600 | 3,493,380 | ||||||
Honeywell International, Inc. | 19,406 | 3,585,064 | ||||||
|
| |||||||
8,576,083 | ||||||||
Industrial REITs — 0.3% | ||||||||
Prologis, Inc. | 26,890 | 3,017,327 | ||||||
|
| |||||||
Insurance — 1.5% | ||||||||
American International Group, Inc. | 21,165 | 1,282,599 | ||||||
Aon PLC, Class A | 5,884 | 1,907,711 | ||||||
Chubb Ltd. | 12,002 | 2,498,576 | ||||||
Marsh & McLennan Cos., Inc. | 14,454 | 2,750,596 | ||||||
MetLife, Inc. | 18,825 | 1,184,281 | ||||||
Progressive Corp. (The) | 17,018 | 2,370,607 | ||||||
Travelers Cos., Inc. (The) | 6,714 | 1,096,463 | ||||||
|
| |||||||
13,090,833 |
Security | Shares | Value | ||||||
Interactive Media & Services — 7.0% | ||||||||
Alphabet, Inc., Class A(a) | 173,217 | $ | 22,667,177 | |||||
Alphabet, Inc., Class C, NVS(a) | 148,248 | 19,546,499 | ||||||
Meta Platforms, Inc., Class A(a) | 64,474 | 19,355,739 | ||||||
|
| |||||||
61,569,415 | ||||||||
IT Services — 1.2% | ||||||||
Accenture PLC, Class A | 18,418 | 5,656,352 | ||||||
International Business Machines Corp. | 26,485 | 3,715,846 | ||||||
Snowflake, Inc., Class A(a) | 9,056 | 1,383,485 | ||||||
|
| |||||||
10,755,683 | ||||||||
Life Sciences Tools & Services — 1.2% | ||||||||
Danaher Corp. | 19,184 | 4,759,550 | ||||||
Thermo Fisher Scientific, Inc. | 11,245 | 5,691,882 | ||||||
|
| |||||||
10,451,432 | ||||||||
Machinery — 1.0% | ||||||||
Caterpillar, Inc. | 15,053 | 4,109,469 | ||||||
Deere & Co. | 7,865 | 2,968,094 | ||||||
Illinois Tool Works, Inc. | 8,826 | 2,032,716 | ||||||
|
| |||||||
9,110,279 | ||||||||
Media — 0.7% | ||||||||
Charter Communications, Inc., Class A(a) | 2,982 | 1,311,543 | ||||||
Comcast Corp., Class A | 119,266 | 5,288,255 | ||||||
|
| |||||||
6,599,798 | ||||||||
Metals & Mining — 0.3% | ||||||||
Freeport-McMoRan, Inc. | 41,544 | 1,549,176 | ||||||
Newmont Corp. | 23,276 | 860,048 | ||||||
Southern Copper Corp. | 2,469 | 185,891 | ||||||
|
| |||||||
2,595,115 | ||||||||
Multi-Utilities — 0.3% | ||||||||
Dominion Energy, Inc. | 24,457 | 1,092,494 | ||||||
Sempra | 18,362 | 1,249,167 | ||||||
|
| |||||||
2,341,661 | ||||||||
Oil, Gas & Consumable Fuels — 4.1% | ||||||||
Chevron Corp. | 51,574 | 8,696,408 | ||||||
ConocoPhillips | 35,342 | 4,233,972 | ||||||
EOG Resources, Inc. | 17,128 | 2,171,145 | ||||||
Exxon Mobil Corp. | 116,761 | 13,728,758 | ||||||
Kinder Morgan, Inc. | 57,064 | 946,121 | ||||||
Marathon Petroleum Corp. | 12,345 | 1,868,292 | ||||||
Occidental Petroleum Corp. | 20,299 | 1,316,999 | ||||||
Pioneer Natural Resources Co. | 6,771 | 1,554,283 | ||||||
Valero Energy Corp. | 10,297 | 1,459,188 | ||||||
|
| |||||||
35,975,166 | ||||||||
Personal Care Products — 0.2% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 6,707 | 969,497 | ||||||
Kenvue, Inc. | 50,737 | 1,018,799 | ||||||
|
| |||||||
1,988,296 | ||||||||
Pharmaceuticals — 4.9% | ||||||||
Bristol-Myers Squibb Co. | 61,274 | 3,556,343 | ||||||
Eli Lilly & Co. | 24,668 | 13,249,923 | ||||||
Johnson & Johnson | 70,248 | 10,941,126 | ||||||
Merck & Co., Inc. | 74,039 | 7,622,315 | ||||||
Pfizer, Inc. | 164,698 | 5,463,033 | ||||||
Zoetis, Inc., Class A | 13,491 | 2,347,164 | ||||||
|
| |||||||
43,179,904 | ||||||||
Professional Services — 0.3% | ||||||||
Automatic Data Processing, Inc. | 12,043 | 2,897,305 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 7.9% | ||||||||
Advanced Micro Devices, Inc.(a) | 46,722 | 4,803,956 |
S C H E D U L E S O F I N V E S T M E N T S | 9 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
Analog Devices, Inc. | 14,735 | $ | 2,579,951 | |||||
Applied Materials, Inc. | 24,605 | 3,406,562 | ||||||
Broadcom, Inc. | 11,777 | 9,781,741 | ||||||
Intel Corp. | 121,686 | 4,325,937 | ||||||
KLA Corp. | 3,996 | 1,832,805 | ||||||
Lam Research Corp. | 3,905 | 2,447,537 | ||||||
Micron Technology, Inc. | 31,854 | 2,167,028 | ||||||
NVIDIA Corp. | 69,261 | 30,127,842 | ||||||
QUALCOMM, Inc. | 32,518 | 3,611,449 | ||||||
Texas Instruments, Inc. | 26,459 | 4,207,246 | ||||||
|
| |||||||
69,292,054 | ||||||||
Software — 12.1% | ||||||||
Adobe, Inc.(a) | 13,356 | 6,810,224 | ||||||
Atlassian Corp., Class A(a) | 4,209 | 848,156 | ||||||
Autodesk, Inc.(a) | 6,250 | 1,293,188 | ||||||
Cadence Design Systems, Inc.(a) | 7,868 | 1,843,472 | ||||||
Fortinet, Inc.(a) | 19,108 | 1,121,258 | ||||||
Intuit, Inc. | 7,963 | 4,068,615 | ||||||
Microsoft Corp. | 216,934 | 68,496,911 | ||||||
Oracle Corp. | 44,320 | 4,694,374 | ||||||
Palo Alto Networks, Inc.(a)(c) | 8,778 | 2,057,914 | ||||||
Roper Technologies, Inc. | 3,092 | 1,497,394 | ||||||
Salesforce, Inc.(a) | 27,590 | 5,594,700 | ||||||
ServiceNow, Inc.(a) | 5,934 | 3,316,869 | ||||||
Synopsys, Inc.(a) | 4,422 | 2,029,565 | ||||||
VMware, Inc., Class A(a) | 6,273 | 1,044,329 | ||||||
Workday, Inc., Class A(a) | 5,754 | 1,236,247 | ||||||
|
| |||||||
105,953,216 | ||||||||
Specialized REITs — 0.7% | ||||||||
American Tower Corp. | 13,569 | 2,231,422 | ||||||
Crown Castle, Inc. | 12,589 | 1,158,566 | ||||||
Equinix, Inc. | 2,720 | 1,975,427 | ||||||
Public Storage | 4,578 | 1,206,394 | ||||||
|
| |||||||
6,571,809 | ||||||||
Specialty Retail — 2.1% | ||||||||
AutoZone, Inc.(a) | 526 | 1,336,035 | ||||||
Home Depot, Inc. (The) | 29,520 | 8,919,763 | ||||||
Lowe’s Cos., Inc. | 17,092 | 3,552,401 | ||||||
O’Reilly Automotive, Inc.(a) | 1,742 | 1,583,234 | ||||||
TJX Cos., Inc. (The) | 33,633 | 2,989,301 | ||||||
|
| |||||||
18,380,734 |
Security | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals — 8.5% | ||||||||
Apple Inc. | 435,005 | $ | 74,477,206 | |||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.5% | ||||||||
Lululemon Athletica, Inc.(a) | 3,238 | 1,248,605 | ||||||
NIKE, Inc., Class B | 34,661 | 3,314,285 | ||||||
|
| |||||||
4,562,890 | ||||||||
Tobacco — 0.7% | ||||||||
Altria Group, Inc. | 52,192 | 2,194,674 | ||||||
Philip Morris International, Inc. | 45,235 | 4,187,856 | ||||||
|
| |||||||
6,382,530 | ||||||||
Wireless Telecommunication Services — 0.2% | ||||||||
T-Mobile U.S., Inc.(a) | 15,514 | 2,172,736 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% | 877,133,666 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(b)(d)(e) | 186,898 | 186,973 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(d) | 4,710,637 | 4,710,637 | ||||||
|
| |||||||
Total Short-Term Securities — 0.6% | 4,897,610 | |||||||
|
| |||||||
Total Investments — 100.4% |
| 882,031,276 | ||||||
Liabilities in Excess of Other Assets — (0.4)% |
| (3,268,853 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 878,762,423 | |||||
|
|
(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | All or a portion of this security is on loan. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
10 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at | Income | Capital Gain | |||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL | $ | 1,637,124 | $ | — | $ | (1,452,748 | )(a) | $ | 2,585 | $ | 12 | $ | 186,973 | 186,898 | $ | 5,660 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL | 1,169,890 | 3,540,747 | (a) | — | — | — | 4,710,637 | 4,710,637 | 37,496 | — | ||||||||||||||||||||||||||
BlackRock, Inc. | 2,821,679 | 468,177 | (396,443 | ) | 52,259 | (144,431 | ) | 2,801,241 | 4,333 | 43,245 | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 54,844 | $ | (144,419 | ) | $ | 7,698,851 | $ | 86,401 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
S&P 500 E-Mini Index | 7 | 12/15/23 | $ | 1,514 | $ | (48,595 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 48,595 | $ | — | $ | — | $ | — | $ | 48,595 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 178,105 | $ | — | $ | — | $ | — | $ | 178,105 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (133,612 | ) | $ | — | $ | — | $ | — | $ | (133,612 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 1,430,200 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
S C H E D U L E S O F I N V E S T M E N T S | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 877,133,666 | $ | — | $ | — | $ | 877,133,666 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 4,897,610 | — | — | 4,897,610 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 882,031,276 | $ | — | $ | — | $ | 882,031,276 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (48,595 | ) | $ | — | $ | — | $ | (48,595 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
12 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Russell Top 200 Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.6% | ||||||||
Boeing Co. (The)(a)(b) | 26,784 | $ | 5,133,957 | |||||
Lockheed Martin Corp. | 80,007 | 32,719,663 | ||||||
Northrop Grumman Corp. | 2,908 | 1,280,072 | ||||||
|
| |||||||
39,133,692 | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
United Parcel Service, Inc., Class B | 70,828 | 11,039,960 | ||||||
|
| |||||||
Automobiles — 3.8% | ||||||||
Tesla, Inc.(a) | 976,448 | 244,326,819 | ||||||
|
| |||||||
Beverages — 1.7% | ||||||||
Coca-Cola Co. (The) | 683,643 | 38,270,335 | ||||||
Constellation Brands, Inc., Class A | 5,697 | 1,431,827 | ||||||
Monster Beverage Corp.(a) | 263,797 | 13,968,051 | ||||||
PepsiCo, Inc. | 336,888 | 57,082,303 | ||||||
|
| |||||||
110,752,516 | ||||||||
Biotechnology — 2.5% | ||||||||
AbbVie, Inc. | 624,503 | 93,088,417 | ||||||
Amgen, Inc. | 128,551 | 34,549,367 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 2,486 | 2,045,878 | ||||||
Vertex Pharmaceuticals, Inc.(a)(b) | 83,416 | 29,007,080 | ||||||
|
| |||||||
158,690,742 | ||||||||
Broadline Retail — 6.3% | ||||||||
Amazon.com, Inc.(a) | 3,188,429 | 405,313,095 | ||||||
|
| |||||||
Capital Markets — 0.7% | ||||||||
Blackstone, Inc., Class A, NVS(b) | 251,956 | 26,994,566 | ||||||
Moody’s Corp. | 51,315 | 16,224,264 | ||||||
S&P Global, Inc. | 9,418 | 3,441,431 | ||||||
|
| |||||||
46,660,261 | ||||||||
Chemicals — 0.6% | ||||||||
Ecolab, Inc. | 68,184 | 11,550,369 | ||||||
Linde PLC | 16,342 | 6,084,944 | ||||||
Sherwin-Williams Co. (The) | 70,222 | 17,910,121 | ||||||
|
| |||||||
35,545,434 | ||||||||
Commercial Services & Supplies — 0.3% | ||||||||
Waste Management, Inc. | 129,488 | 19,739,151 | ||||||
|
| |||||||
Communications Equipment — 0.5% | ||||||||
Arista Networks, Inc.(a) | 88,875 | 16,346,779 | ||||||
Motorola Solutions, Inc. | 53,691 | 14,616,838 | ||||||
|
| |||||||
30,963,617 | ||||||||
Consumer Finance — 0.2% | ||||||||
American Express Co. | 68,526 | 10,223,394 | ||||||
|
| |||||||
Consumer Staples Distribution & Retail — 2.0% | ||||||||
Costco Wholesale Corp. | 156,789 | 88,579,513 | ||||||
Dollar General Corp. | 77,364 | 8,185,111 | ||||||
Sysco Corp. | 179,181 | 11,834,905 | ||||||
Target Corp. | 162,910 | 18,012,959 | ||||||
|
| |||||||
126,612,488 | ||||||||
Entertainment — 0.9% | ||||||||
Netflix, Inc.(a) | 155,184 | 58,597,478 | ||||||
|
| |||||||
Financial Services — 4.3% | ||||||||
Fiserv, Inc.(a) | 58,877 | 6,650,746 | ||||||
Mastercard, Inc., Class A | 296,910 | 117,549,638 | ||||||
PayPal Holdings, Inc.(a)(b) | 360,245 | 21,059,923 | ||||||
Visa, Inc., Class A | 573,092 | 131,816,891 | ||||||
|
| |||||||
277,077,198 |
Security | Shares | Value | ||||||
Food Products — 0.1% | ||||||||
Hershey Co. (The) | 38,593 | $ | 7,721,687 | |||||
|
| |||||||
Ground Transportation — 0.8% | ||||||||
CSX Corp. | 79,582 | 2,447,146 | ||||||
Uber Technologies, Inc.(a) | 686,315 | 31,563,627 | ||||||
Union Pacific Corp. | 92,216 | 18,777,944 | ||||||
|
| |||||||
52,788,717 | ||||||||
Health Care Equipment & Supplies — 1.0% | ||||||||
Abbott Laboratories | 38,519 | 3,730,565 | ||||||
Edwards Lifesciences Corp.(a) | 213,313 | 14,778,325 | ||||||
GE HealthCare Technologies, Inc. | 10,406 | 708,024 | ||||||
Intuitive Surgical, Inc.(a) | 123,578 | 36,120,614 | ||||||
Stryker Corp. | 31,872 | 8,709,661 | ||||||
|
| |||||||
64,047,189 | ||||||||
Health Care Providers & Services — 2.6% | ||||||||
Cigna Group (The) | 7,637 | 2,184,717 | ||||||
Elevance Health, Inc. | 11,154 | 4,856,675 | ||||||
HCA Healthcare, Inc. | 14,938 | 3,674,449 | ||||||
Humana, Inc. | 19,138 | 9,311,020 | ||||||
McKesson Corp. | 18,277 | 7,947,753 | ||||||
UnitedHealth Group, Inc. | 276,655 | 139,486,684 | ||||||
|
| |||||||
167,461,298 | ||||||||
Hotels, Restaurants & Leisure — 2.6% | ||||||||
Airbnb, Inc., Class A(a)(b) | 143,634 | 19,708,021 | ||||||
Booking Holdings, Inc.(a)(b) | 13,130 | 40,492,264 | ||||||
Chipotle Mexican Grill, Inc.(a) | 9,710 | 17,787,069 | ||||||
Las Vegas Sands Corp. | 108,863 | 4,990,280 | ||||||
Marriott International, Inc., Class A | 87,836 | 17,265,044 | ||||||
McDonald’s Corp. | 106,593 | 28,080,860 | ||||||
Starbucks Corp. | 399,258 | 36,440,278 | ||||||
|
| |||||||
164,763,816 | ||||||||
Household Products — 0.6% | ||||||||
Kimberly-Clark Corp. | 111,927 | 13,526,378 | ||||||
Procter & Gamble Co. (The) | 156,780 | 22,867,931 | ||||||
|
| |||||||
36,394,309 | ||||||||
Industrial Conglomerates — 0.1% | ||||||||
Honeywell International, Inc. | 30,349 | 5,606,674 | ||||||
|
| |||||||
Insurance — 0.7% | ||||||||
Marsh & McLennan Cos., Inc. | 140,358 | 26,710,128 | ||||||
Progressive Corp. (The) | 154,654 | 21,543,302 | ||||||
|
| |||||||
48,253,430 | ||||||||
Interactive Media & Services — 11.6% | ||||||||
Alphabet, Inc., Class A(a) | 2,103,042 | 275,204,076 | ||||||
Alphabet, Inc., Class C, NVS(a) | 1,799,899 | 237,316,683 | ||||||
Meta Platforms, Inc., Class A(a) | 782,779 | 234,998,084 | ||||||
|
| |||||||
747,518,843 | ||||||||
IT Services — 1.3% | ||||||||
Accenture PLC, Class A | 223,610 | 68,672,867 | ||||||
Snowflake, Inc., Class A(a) | 109,792 | 16,772,924 | ||||||
|
| |||||||
85,445,791 | ||||||||
Life Sciences Tools & Services — 0.7% | ||||||||
Thermo Fisher Scientific, Inc. | 84,163 | 42,600,786 | ||||||
|
| |||||||
Machinery — 1.4% | ||||||||
Caterpillar, Inc. | 137,067 | 37,419,291 | ||||||
Deere & Co. | 89,274 | 33,690,222 | ||||||
Illinois Tool Works, Inc. | 87,531 | 20,159,265 | ||||||
|
| |||||||
91,268,778 |
S C H E D U L E S O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Media — 0.2% | ||||||||
Charter Communications, Inc., Class A(a)(b) | 36,219 | $ | 15,929,841 | |||||
|
| |||||||
Metals & Mining — 0.0% | ||||||||
Southern Copper Corp. | 30,091 | 2,265,551 | ||||||
|
| |||||||
Personal Care Products — 0.1% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 25,513 | 3,687,904 | ||||||
Kenvue, Inc. | 208,057 | 4,177,785 | ||||||
|
| |||||||
7,865,689 | ||||||||
Pharmaceuticals — 3.2% | ||||||||
Eli Lilly & Co. | 299,493 | 160,866,675 | ||||||
Merck & Co., Inc. | 165,634 | 17,052,021 | ||||||
Zoetis, Inc., Class A | 163,791 | 28,496,358 | ||||||
|
| |||||||
206,415,054 | ||||||||
Professional Services — 0.5% | ||||||||
Automatic Data Processing, Inc. | 125,636 | 30,225,509 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 10.3% | ||||||||
Advanced Micro Devices, Inc.(a) | 322,711 | 33,181,145 | ||||||
Applied Materials, Inc. | 252,401 | 34,944,919 | ||||||
Broadcom, Inc. | 142,983 | 118,758,820 | ||||||
KLA Corp. | 48,593 | 22,287,665 | ||||||
Lam Research Corp. | 44,955 | 28,176,445 | ||||||
NVIDIA Corp. | 840,907 | 365,786,136 | ||||||
QUALCOMM, Inc. | 344,273 | 38,234,959 | ||||||
Texas Instruments, Inc. | 130,873 | 20,810,116 | ||||||
|
| |||||||
662,180,205 | ||||||||
Software — 18.9% | ||||||||
Adobe, Inc.(a) | 162,153 | 82,681,815 | ||||||
Atlassian Corp., Class A(a) | 51,071 | 10,291,317 | ||||||
Autodesk, Inc.(a) | 76,165 | 15,759,300 | ||||||
Cadence Design Systems, Inc.(a) | 95,772 | 22,439,380 | ||||||
Fortinet, Inc.(a) | 232,795 | 13,660,411 | ||||||
Intuit, Inc. | 96,676 | 49,395,635 | ||||||
Microsoft Corp. | 2,633,812 | 831,626,139 | ||||||
Oracle Corp. | 221,291 | 23,439,143 | ||||||
Palo Alto Networks, Inc.(a)(b) | 106,528 | 24,974,424 | ||||||
Salesforce, Inc.(a) | 252,565 | 51,215,131 | ||||||
ServiceNow, Inc.(a) | 72,050 | 40,273,068 | ||||||
Synopsys, Inc.(a) | 53,691 | 24,642,558 | ||||||
VMware, Inc., Class A(a) | 75,951 | 12,644,322 | ||||||
Workday, Inc., Class A(a) | 69,839 | 15,004,909 | ||||||
|
| |||||||
1,218,047,552 |
Security | Shares | Value | ||||||
Specialized REITs — 0.8% | ||||||||
American Tower Corp. | 164,743 | $ | 27,091,986 | |||||
Crown Castle, Inc. | 16,213 | 1,492,082 | ||||||
Equinix, Inc. | 16,622 | 12,071,894 | ||||||
Public Storage | 32,163 | 8,475,594 | ||||||
|
| |||||||
49,131,556 | ||||||||
Specialty Retail — 3.2% | ||||||||
AutoZone, Inc.(a)(b) | 5,342 | 13,568,627 | ||||||
Home Depot, Inc. (The) | 358,405 | 108,295,655 | ||||||
Lowe’s Cos., Inc. | 152,091 | 31,610,593 | ||||||
O’Reilly Automotive, Inc.(a) | 18,005 | 16,364,024 | ||||||
TJX Cos., Inc. (The) | 407,574 | 36,225,177 | ||||||
|
| |||||||
206,064,076 | ||||||||
Technology Hardware, Storage & Peripherals — 14.0% | ||||||||
Apple Inc. | 5,281,433 | 904,234,144 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.6% | ||||||||
Lululemon Athletica, Inc.(a) | 39,449 | 15,211,929 | ||||||
NIKE, Inc., Class B | 224,458 | 21,462,674 | ||||||
|
| |||||||
36,674,603 | ||||||||
|
| |||||||
Total Long-Term Investments — 99.9% |
| 6,427,580,943 | ||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 1.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 69,761,005 | 69,788,910 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 20,227,183 | 20,227,183 | ||||||
|
| |||||||
Total Short-Term Securities — 1.4% |
| 90,016,093 | ||||||
|
| |||||||
Total Investments — 101.3% | 6,517,597,036 | |||||||
Liabilities in Excess of Other Assets — (1.3)% |
| (81,470,936 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 6,436,126,100 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
14 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 Growth ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain | |||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 40,094,246 | $ | 29,682,661 | (a) | $ | — | $ | 9,252 | $ | 2,751 | $ | 69,788,910 | 69,761,005 | $ | 51,221 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 7,923,181 | 12,304,002 | (a) | — | — | — | 20,227,183 | 20,227,183 | 262,173 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 9,252 | $ | 2,751 | $ | 90,016,093 | $ | 313,394 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
E-Mini Technology Select Sector Index | 2 | 12/15/23 | $ | 334 | $ | (18,006 | ) | |||||||||
NASDAQ 100 E-Mini Index | 25 | 12/15/23 | 7,433 | (306,004 | ) | |||||||||||
|
| |||||||||||||||
$ | (324,010 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
| |||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 324,010 | $ | — | $ | — | $ | — | $ | 324,010 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 2,034,687 | $ | — | $ | — | $ | — | $ | 2,034,687 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: |
| |||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (1,188,142 | ) | $ | — | $ | — | $ | — | $ | (1,188,142 | ) |
S C H E D U L E S O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 Growth ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 9,369,915 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 6,427,580,943 | $ | — | $ | — | $ | 6,427,580,943 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 90,016,093 | — | — | 90,016,093 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 6,517,597,036 | $ | — | $ | — | $ | 6,517,597,036 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | �� | $ | (324,010 | ) | $ | — | $ | — | $ | (324,010 | ) | |||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
16 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Russell Top 200 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 2.9% | ||||||||
Boeing Co. (The)(a) | 68,866 | $ | 13,200,235 | |||||
General Dynamics Corp. | 34,981 | 7,729,752 | ||||||
L3Harris Technologies, Inc. | 27,025 | 4,705,593 | ||||||
Northrop Grumman Corp. | 19,294 | 8,493,026 | ||||||
RTX Corp. | 208,881 | 15,033,165 | ||||||
|
| |||||||
49,161,771 | ||||||||
Air Freight & Logistics — 1.2% | ||||||||
FedEx Corp. | 33,142 | 8,779,978 | ||||||
United Parcel Service, Inc., Class B | 74,840 | 11,665,311 | ||||||
|
| |||||||
20,445,289 | ||||||||
Automobiles — 0.8% | ||||||||
Ford Motor Co. | 560,767 | 6,964,726 | ||||||
General Motors Co. | 196,157 | 6,467,296 | ||||||
|
| |||||||
13,432,022 | ||||||||
Banks — 8.2% | ||||||||
Bank of America Corp. | 995,668 | 27,261,390 | ||||||
Citigroup, Inc. | 278,005 | 11,434,346 | ||||||
JPMorgan Chase & Co. | 412,625 | 59,838,877 | ||||||
PNC Financial Services Group, Inc. (The) | 56,916 | 6,987,577 | ||||||
Truist Financial Corp. | 189,537 | 5,422,654 | ||||||
U.S. Bancorp | 219,016 | 7,240,669 | ||||||
Wells Fargo & Co. | 524,604 | 21,435,319 | ||||||
|
| |||||||
139,620,832 | ||||||||
Beverages — 2.1% | ||||||||
Coca-Cola Co. (The) | 280,589 | 15,707,372 | ||||||
Constellation Brands, Inc., Class A | 20,711 | 5,205,296 | ||||||
Keurig Dr Pepper, Inc. | 136,187 | 4,299,423 | ||||||
PepsiCo, Inc. | 60,850 | 10,310,424 | ||||||
|
| |||||||
35,522,515 | ||||||||
Biotechnology — 2.2% | ||||||||
Amgen, Inc. | 24,435 | 6,567,151 | ||||||
Gilead Sciences, Inc. | 178,657 | 13,388,556 | ||||||
Moderna, Inc.(a)(b) | 47,497 | 4,905,965 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 13,802 | 11,358,494 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 3,110 | 1,081,471 | ||||||
|
| |||||||
37,301,637 | ||||||||
Building Products — 0.3% | ||||||||
Johnson Controls International PLC | 98,170 | 5,223,626 | ||||||
|
| |||||||
Capital Markets — 5.2% | ||||||||
BlackRock, Inc.(c) | 21,248 | 13,736,620 | ||||||
Charles Schwab Corp. (The) | 211,850 | 11,630,565 | ||||||
CME Group, Inc., Class A | 51,317 | 10,274,690 | ||||||
Goldman Sachs Group, Inc. (The) | 46,149 | 14,932,432 | ||||||
Intercontinental Exchange, Inc | 80,904 | 8,901,058 | ||||||
Moody’s Corp. | 1,985 | 627,597 | ||||||
Morgan Stanley | 171,852 | 14,035,153 | ||||||
S&P Global, Inc. | 42,049 | 15,365,125 | ||||||
|
| |||||||
89,503,240 | ||||||||
Chemicals — 2.4% | ||||||||
Air Products & Chemicals, Inc. | 31,697 | 8,982,930 | ||||||
Dow, Inc. | 101,120 | 5,213,747 | ||||||
Ecolab, Inc. | 7,925 | 1,342,495 | ||||||
Linde PLC | 63,531 | 23,655,768 | ||||||
Sherwin-Williams Co. (The) | 5,711 | 1,456,590 | ||||||
|
| |||||||
40,651,530 | ||||||||
Commercial Services & Supplies — 0.1% | ||||||||
Waste Management, Inc. | 5,830 | 888,725 | ||||||
|
|
Security | Shares | Value | ||||||
Communications Equipment — 1.9% | ||||||||
Cisco Systems, Inc. | 586,118 | $ | 31,509,704 | |||||
Motorola Solutions, Inc. | 1,881 | 512,083 | ||||||
|
| |||||||
32,021,787 | ||||||||
Consumer Finance — 0.8% | ||||||||
American Express Co. | 56,830 | 8,478,468 | ||||||
Capital One Financial Corp. | 54,164 | 5,256,616 | ||||||
|
| |||||||
13,735,084 | ||||||||
Consumer Staples Distribution & Retail — 1.9% | ||||||||
Walmart, Inc. | 204,032 | 32,630,838 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.0% | ||||||||
AT&T Inc. | 1,023,368 | 15,370,987 | ||||||
Verizon Communications, Inc. | 601,549 | 19,496,203 | ||||||
|
| |||||||
34,867,190 | ||||||||
Electric Utilities — 2.8% | ||||||||
American Electric Power Co., Inc. | 73,603 | 5,536,418 | ||||||
Duke Energy Corp. | 110,175 | 9,724,046 | ||||||
Exelon Corp. | 142,047 | 5,367,956 | ||||||
NextEra Energy, Inc. | 289,367 | 16,577,835 | ||||||
Southern Co. (The) | 155,752 | 10,080,269 | ||||||
|
| |||||||
47,286,524 | ||||||||
Electrical Equipment — 1.2% | ||||||||
Eaton Corp. PLC | 56,921 | 12,140,111 | ||||||
Emerson Electric Co. | 81,567 | 7,876,925 | ||||||
|
| |||||||
20,017,036 | ||||||||
Energy Equipment & Services — 0.7% | ||||||||
Schlumberger NV | 203,633 | 11,871,804 | ||||||
|
| |||||||
Entertainment — 1.8% | ||||||||
Activision Blizzard, Inc | 103,843 | 9,722,820 | ||||||
Walt Disney Co. (The)(a) | 261,398 | 21,186,308 | ||||||
|
| |||||||
30,909,128 | ||||||||
Financial Services — 5.8% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 261,756 | 91,693,127 | ||||||
Fiserv, Inc.(a) | 63,012 | 7,117,836 | ||||||
PayPal Holdings, Inc.(a) | 15,266 | 892,450 | ||||||
|
| |||||||
99,703,413 | ||||||||
Food Products — 1.7% | ||||||||
Archer-Daniels-Midland Co. | 76,287 | 5,753,565 | ||||||
General Mills, Inc. | 83,942 | 5,371,449 | ||||||
Hershey Co. (The) | 5,464 | 1,093,237 | ||||||
Kraft Heinz Co. (The) | 114,775 | 3,861,031 | ||||||
Mondelez International, Inc., Class A | 194,378 | 13,489,833 | ||||||
|
| |||||||
29,569,115 | ||||||||
Ground Transportation — 1.4% | ||||||||
CSX Corp. | 254,549 | 7,827,382 | ||||||
Norfolk Southern Corp. | 32,471 | 6,394,514 | ||||||
Union Pacific Corp. | 49,838 | 10,148,512 | ||||||
|
| |||||||
24,370,408 | ||||||||
Health Care Equipment & Supplies — 4.2% | ||||||||
Abbott Laboratories | 231,855 | 22,455,157 | ||||||
Becton Dickinson & Co. | 40,507 | 10,472,275 | ||||||
Boston Scientific Corp.(a) | 205,221 | 10,835,669 | ||||||
GE HealthCare Technologies, Inc. | 51,378 | 3,495,759 | ||||||
Medtronic PLC | 189,860 | 14,877,429 | ||||||
Stryker Corp. | 37,879 | 10,351,194 | ||||||
|
| |||||||
72,487,483 | ||||||||
Health Care Providers & Services — 4.0% | ||||||||
Centene Corp.(a) | 77,296 | 5,324,148 |
S C H E D U L E S O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
Cigna Group (The) | 38,644 | $ | 11,054,889 | |||||
CVS Health Corp. | 183,031 | 12,779,224 | ||||||
Elevance Health, Inc. | 29,378 | 12,791,769 | ||||||
HCA Healthcare, Inc. | 23,173 | 5,700,095 | ||||||
Humana, Inc. | 10,106 | 4,916,771 | ||||||
McKesson Corp. | 11,994 | 5,215,591 | ||||||
UnitedHealth Group, Inc. | 21,126 | 10,651,518 | ||||||
|
| |||||||
68,434,005 | ||||||||
Hotels, Restaurants & Leisure — 1.0% | ||||||||
Las Vegas Sands Corp. | 3,193 | 146,367 | ||||||
McDonald’s Corp. | 61,194 | 16,120,947 | ||||||
|
| |||||||
16,267,314 | ||||||||
Household Products — 2.8% | ||||||||
Colgate-Palmolive Co. | 117,296 | 8,340,919 | ||||||
Kimberly-Clark Corp | 2,818 | 340,555 | ||||||
Procter & Gamble Co. (The) | 273,259 | 39,857,558 | ||||||
|
| |||||||
48,539,032 | ||||||||
Industrial Conglomerates — 2.3% | ||||||||
3M Co. | 78,585 | 7,357,128 | ||||||
General Electric Co. | 154,968 | 17,131,712 | ||||||
Honeywell International, Inc. | 82,893 | 15,313,653 | ||||||
|
| |||||||
39,802,493 | ||||||||
Industrial REITs — 0.9% | ||||||||
Prologis, Inc. | 131,869 | 14,797,021 | ||||||
|
| |||||||
Insurance — 2.6% | ||||||||
American International Group, Inc. | 103,412 | 6,266,767 | ||||||
Aon PLC, Class A | 28,895 | 9,368,337 | ||||||
Chubb Ltd. | 58,916 | 12,265,133 | ||||||
Marsh & McLennan Cos., Inc. | 14,079 | 2,679,234 | ||||||
MetLife, Inc. | 92,420 | 5,814,142 | ||||||
Progressive Corp. (The) | 20,968 | 2,920,842 | ||||||
Travelers Cos., Inc. (The) | 32,941 | 5,379,595 | ||||||
|
| |||||||
44,694,050 | ||||||||
IT Services — 1.1% | ||||||||
International Business Machines Corp. | 129,881 | 18,222,304 | ||||||
|
| |||||||
Life Sciences Tools & Services — 2.0% | ||||||||
Danaher Corp. | 94,079 | 23,341,000 | ||||||
Thermo Fisher Scientific, Inc. | 21,175 | 10,718,150 | ||||||
|
| |||||||
34,059,150 | ||||||||
Machinery — 0.5% | ||||||||
Caterpillar, Inc. | 18,455 | 5,038,215 | ||||||
Deere & Co. | 2,507 | 946,092 | ||||||
Illinois Tool Works, Inc. | 8,035 | 1,850,541 | ||||||
|
| |||||||
7,834,848 | ||||||||
Media — 1.5% | ||||||||
Comcast Corp., Class A | 584,880 | 25,933,579 | ||||||
|
| |||||||
Metals & Mining — 0.7% | ||||||||
Freeport-McMoRan, Inc. | 204,152 | 7,612,828 | ||||||
Newmont Corp. | 113,696 | 4,201,067 | ||||||
|
| |||||||
11,813,895 | ||||||||
Multi-Utilities — 0.7% | ||||||||
Dominion Energy, Inc. | 119,452 | 5,335,921 | ||||||
Sempra | 90,035 | 6,125,081 | ||||||
|
| |||||||
11,461,002 | ||||||||
Oil, Gas & Consumable Fuels — 10.3% | ||||||||
Chevron Corp. | 252,919 | 42,647,202 | ||||||
ConocoPhillips | 173,318 | 20,763,496 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
EOG Resources, Inc. | 83,997 | $ | 10,647,460 | |||||
Exxon Mobil Corp. | 572,595 | 67,325,720 | ||||||
Kinder Morgan, Inc. | 280,228 | 4,646,180 | ||||||
Marathon Petroleum Corp. | 60,600 | 9,171,204 | ||||||
Occidental Petroleum Corp. | 99,681 | 6,467,303 | ||||||
Pioneer Natural Resources Co. | 33,261 | 7,635,063 | ||||||
Valero Energy Corp. | 50,314 | 7,129,997 | ||||||
|
| |||||||
176,433,625 | ||||||||
Personal Care Products — 0.4% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 22,505 | 3,253,098 | ||||||
Kenvue, Inc. | 163,756 | 3,288,220 | ||||||
|
| |||||||
6,541,318 | ||||||||
Pharmaceuticals — 7.5% | ||||||||
Bristol-Myers Squibb Co. | 300,489 | 17,440,382 | ||||||
Johnson & Johnson | 344,497 | 53,655,408 | ||||||
Merck & Co., Inc. | 296,278 | 30,501,820 | ||||||
Pfizer, Inc. | 807,679 | 26,790,712 | ||||||
|
| |||||||
128,388,322 | ||||||||
Professional Services — 0.1% | ||||||||
Automatic Data Processing, Inc. | 8,420 | 2,025,684 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.2% | ||||||||
Advanced Micro Devices, Inc.(a) | 98,752 | 10,153,681 | ||||||
Analog Devices, Inc. | 72,260 | 12,652,003 | ||||||
Applied Materials, Inc. | 18,697 | 2,588,600 | ||||||
Intel Corp. | 596,747 | 21,214,356 | ||||||
Lam Research Corp. | 1,010 | 633,038 | ||||||
Micron Technology, Inc. | 156,214 | 10,627,238 | ||||||
QUALCOMM, Inc. | 20,412 | 2,266,957 | ||||||
Texas Instruments, Inc. | 76,815 | 12,214,353 | ||||||
|
| |||||||
72,350,226 | ||||||||
Software — 1.6% | ||||||||
Oracle Corp. | 128,017 | 13,559,561 | ||||||
Roper Technologies, Inc. | 15,105 | 7,315,049 | ||||||
Salesforce, Inc.(a) | 33,283 | 6,749,127 | ||||||
|
| |||||||
27,623,737 | ||||||||
Specialized REITs — 0.7% | ||||||||
Crown Castle, Inc. | 55,272 | 5,086,682 | ||||||
Equinix, Inc. | 6,644 | 4,825,272 | ||||||
Public Storage | 9,381 | 2,472,081 | ||||||
|
| |||||||
12,384,035 | ||||||||
Specialty Retail — 0.4% | ||||||||
AutoZone, Inc.(a) | 431 | 1,094,736 | ||||||
Lowe’s Cos., Inc. | 22,380 | 4,651,459 | ||||||
O’Reilly Automotive, Inc.(a) | 1,293 | 1,175,156 | ||||||
|
| |||||||
6,921,351 | ||||||||
Textiles, Apparel & Luxury Goods — 0.5% | ||||||||
NIKE, Inc., Class B | 79,379 | 7,590,220 | ||||||
|
| |||||||
Tobacco — 1.8% | ||||||||
Altria Group, Inc. | 255,307 | 10,735,659 | ||||||
Philip Morris International, Inc. | 221,830 | 20,537,022 | ||||||
|
| |||||||
31,272,681 | ||||||||
Wireless Telecommunication Services — 0.6% | ||||||||
T-Mobile U.S., Inc.(a) | 76,117 | 10,660,186 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% |
| 1,705,271,075 | ||||||
|
|
18 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S
|
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 Value ETF |
Security | Shares | Value | ||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 429,489 | $ | 429,661 | |||||
BlackRock Cash Funds: Treasury, | 13,925,444 | 13,925,444 | ||||||
|
| |||||||
Total Short-Term Securities — 0.8% |
| 14,355,105 | ||||||
|
| |||||||
Total Investments — 100.6% |
| 1,719,626,180 | ||||||
Liabilities in Excess of Other Assets — (0.6)% |
| (10,081,762 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 1,709,544,418 | |||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain | |||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 4,046,890 | $ | — | $ | (3,615,431 | )(a) | $ | (2,203 | ) | $ | 405 | $ | 429,661 | 429,489 | $ | 3,016 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,378,970 | 11,546,474 | (a) | — | — | — | 13,925,444 | 13,925,444 | 71,892 | — | ||||||||||||||||||||||||||
BlackRock, Inc. | 12,557,375 | 3,319,550 | (1,617,825) | (187,333 | ) | (335,147 | ) | 13,736,620 | 21,248 | 203,950 | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (189,536 | ) | $ | (334,742 | ) | $ | 28,091,725 | $ | 278,858 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
E-Mini Consumer Staples Select Sector Index | 13 | 12/15/23 | $ | 909 | $ | (33,311 | ) | |||||||||
E-Mini Dow Jones Industrial Average Index | 10 | 12/15/23 | 1,686 | (47,874 | ) | |||||||||||
E-Mini Financials Select Sector Index | 14 | 12/15/23 | 1,444 | (50,166 | ) | |||||||||||
|
| |||||||||||||||
$ | (131,351 | ) | ||||||||||||||
|
|
S C H E D U L E S O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Top 200 Value ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
| |||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 131,351 | $ | — | $ | — | $ | — | $ | 131,351 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 212,745 | $ | — | $ | — | $ | — | $ | 212,745 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (209,616 | ) | $ | — | $ | — | $ | — | $ | (209,616 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 4,010,243 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 1,705,271,075 | $ | — | $ | — | $ | 1,705,271,075 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 14,355,105 | — | — | 14,355,105 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,719,626,180 | $ | — | $ | — | $ | 1,719,626,180 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (131,351 | ) | $ | — | $ | — | $ | (131,351 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
20 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares Russell Top 200 ETF | iShares Russell Top 200 Growth ETF | iShares Russell Top 200 Value ETF | ||||||||||
ASSETS | ||||||||||||
Investments, at value — unaffiliated(a)(b) | $ | 874,332,425 | $ | 6,427,580,943 | $ | 1,691,534,455 | ||||||
Investments, at value — affiliated(c) | 7,698,851 | 90,016,093 | 28,091,725 | |||||||||
Cash | 160 | 30 | 31 | |||||||||
Cash pledged: | ||||||||||||
Futures contracts | 80,000 | 444,000 | 199,000 | |||||||||
Receivables: | ||||||||||||
Investments sold | 2,789 | 2,484,047 | 3,360 | |||||||||
Securities lending income — affiliated | 5,356 | 11,472 | 1,716 | |||||||||
Dividends — unaffiliated | 470,571 | 1,278,980 | 1,765,955 | |||||||||
Dividends — affiliated | 7,033 | 46,290 | 15,375 | |||||||||
Variation margin on futures contracts | — | 4,455 | — | |||||||||
|
|
|
|
|
| |||||||
Total assets | 882,597,185 | 6,521,866,310 | 1,721,611,617 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Collateral on securities loaned | 184,792 | 69,734,936 | 429,661 | |||||||||
Payables: | ||||||||||||
Investments purchased | 2,789 | 2,484,047 | 3,360 | |||||||||
Income dividend distributions | 3,530,653 | 12,442,884 | 11,323,107 | |||||||||
Investment advisory fees | 112,328 | 1,078,343 | 286,781 | |||||||||
Variation margin on futures contracts | 4,200 | — | 24,290 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 3,834,762 | 85,740,210 | 12,067,199 | |||||||||
|
|
|
|
|
| |||||||
Commitments and contingent liabilities | ||||||||||||
NET ASSETS | $ | 878,762,423 | $ | 6,436,126,100 | $ | 1,709,544,418 | ||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 854,731,373 | $ | 5,441,094,732 | $ | 1,729,961,563 | ||||||
Accumulated earnings (loss) | 24,031,050 | 995,031,368 | (20,417,145 | ) | ||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 878,762,423 | $ | 6,436,126,100 | $ | 1,709,544,418 | ||||||
|
|
|
|
|
| |||||||
NET ASSET VALUE | ||||||||||||
Shares outstanding | 8,500,000 | 41,850,000 | 26,150,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 103.38 | $ | 153.79 | $ | 65.37 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Investments, at cost — unaffiliated | $ | 843,738,324 | $ | 5,519,698,880 | $ | 1,683,017,044 | ||||||
(b) Securities loaned, at value | $ | 181,063 | $ | 68,091,553 | $ | 433,818 | ||||||
(c) Investments, at cost — affiliated | $ | 7,977,517 | $ | 90,007,158 | $ | 28,675,880 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 21 |
Statements of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Russell Top 200 ETF | iShares Russell Top 200 Growth ETF | iShares Russell Top 200 | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliated | $ | 6,587,535 | $ | 29,381,325 | $ | 20,318,772 | ||||||
Dividends — affiliated | 80,741 | 262,173 | 275,842 | |||||||||
Securities lending income — affiliated — net | 5,660 | 51,221 | 3,016 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 6,673,936 | 29,694,719 | 20,597,630 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory | 658,428 | 6,634,539 | 1,696,857 | |||||||||
Interest expense | 2 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 658,430 | 6,634,539 | 1,696,857 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 6,015,506 | 23,060,180 | 18,900,773 | |||||||||
|
|
|
|
|
| |||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (7,042,918 | ) | (32,768,712 | ) | (36,239,319 | ) | ||||||
Investments — affiliated | (7,628 | ) | 9,252 | (312,749 | ) | |||||||
Futures contracts | 178,105 | 2,034,687 | 212,745 | |||||||||
In-kind redemptions — unaffiliated(a) | 26,966,743 | 414,929,652 | 63,946,716 | |||||||||
In-kind redemptions — affiliated(a) | 62,472 | — | 123,213 | |||||||||
|
|
|
|
|
| |||||||
20,156,774 | 384,204,879 | 27,730,606 | ||||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — unaffiliated | 31,004,483 | 276,723,961 | (25,795,513 | ) | ||||||||
Investments — affiliated | (144,419 | ) | 2,751 | (334,742 | ) | |||||||
Futures contracts | (133,612 | ) | (1,188,142 | ) | (209,616 | ) | ||||||
|
|
|
|
|
| |||||||
30,726,452 | 275,538,570 | (26,339,871 | ) | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 50,883,226 | 659,743,449 | 1,390,735 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 56,898,732 | $ | 682,803,629 | $ | 20,291,508 | ||||||
|
|
|
|
|
|
(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
22 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets
iShares Russell Top 200 ETF | iShares Russell Top 200 Growth ETF | |||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 6,015,506 | $ | 13,073,805 | $ | 23,060,180 | $ | 40,265,299 | ||||||||||||
Net realized gain | 20,156,774 | 110,322,010 | 384,204,879 | 164,547,020 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 30,726,452 | (214,427,844 | ) | 275,538,570 | (695,673,179 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 56,898,732 | (91,032,029 | ) | 682,803,629 | (490,860,860 | ) | ||||||||||||||
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|
|
|
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|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (6,047,268 | ) | (12,861,101 | ) | (22,917,015 | ) | (40,613,805 | ) | ||||||||||||
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|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 24,503,742 | (134,788,881 | ) | (158,311,702 | ) | 1,645,653,871 | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
NET ASSETS | ||||||||||||||||||||
Total increase (decrease) in net assets | 75,355,206 | (238,682,011 | ) | 501,574,912 | 1,114,179,206 | |||||||||||||||
Beginning of period | 803,407,217 | 1,042,089,228 | 5,934,551,188 | 4,820,371,982 | ||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
End of period | $ | 878,762,423 | $ | 803,407,217 | $ | 6,436,126,100 | $ | 5,934,551,188 | ||||||||||||
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|
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|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 23 |
Statements of Changes in Net Assets (continued)
iShares Russell Top 200 Value ETF | ||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 18,900,773 | $ | 30,750,705 | ||||
Net realized gain | 27,730,606 | 76,431,473 | ||||||
Net change in unrealized appreciation (depreciation) | (26,339,871 | ) | (169,370,607 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 20,291,508 | (62,188,429 | ) | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (18,951,758 | ) | (30,093,801 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 151,046,871 | 361,717,362 | ||||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase in net assets | 152,386,621 | 269,435,132 | ||||||
Beginning of period | 1,557,157,797 | 1,287,722,665 | ||||||
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|
|
| |||||
End of period | $ | 1,709,544,418 | $ | 1,557,157,797 | ||||
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(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
24 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares Russell Top 200 ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 97.38 | $ | 107.99 | $ | 94.64 | $ | 61.54 | $ | 65.66 | $ | 60.63 | ||||||||||||
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|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.71 | 1.42 | 1.26 | 1.23 | 1.28 | 1.21 | ||||||||||||||||||
Net realized and unrealized gain(b) | 6.00 | (10.59 | ) | 13.37 | 33.09 | (3.94 | ) | 4.97 | ||||||||||||||||
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|
|
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| |||||||||||||
Net increase from investment operations | 6.71 | (9.17 | ) | 14.63 | 34.32 | (2.66 | ) | 6.18 | ||||||||||||||||
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|
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|
|
|
| |||||||||||||
Distributions from net investment income(c) | (0.71 | ) | (1.44 | ) | (1.28 | ) | (1.22 | ) | (1.46 | ) | (1.15 | ) | ||||||||||||
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|
| |||||||||||||
Net asset value, end of period | $ | 103.38 | $ | 97.38 | $ | 107.99 | $ | 94.64 | $ | 61.54 | $ | 65.66 | ||||||||||||
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| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 6.90 | %(e) | (8.41 | )% | 15.48 | % | 56.06 | % | (4.24 | )% | 10.27 | % | ||||||||||||
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|
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| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.15 | %(g) | 0.15 | % | 0.15 | % | 0.15 | % | 0.15 | % | 0.15 | % | ||||||||||||
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|
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| |||||||||||||
Net investment income | 1.37 | %(g) | 1.51 | % | 1.20 | % | 1.48 | % | 1.82 | % | 1.91 | % | ||||||||||||
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 878,762 | $ | 803,407 | $ | 1,042,089 | $ | 865,920 | $ | 369,243 | $ | 213,382 | ||||||||||||
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| |||||||||||||
Portfolio turnover rate(h) | 3 | % | 5 | % | 4 | % | 5 | % | 5 | % | 5 | % | ||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 25 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Russell Top 200 Growth ETF | ||||||||||||||||||||||||
Six Months Ended (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 138.98 | $ | 158.56 | $ | 134.47 | $ | 84.14 | $ | 82.24 | $ | 73.61 | ||||||||||||
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|
| |||||||||||||
Net investment income(a) | 0.53 | 1.14 | 0.89 | 0.93 | 1.04 | 1.00 | ||||||||||||||||||
Net realized and unrealized gain(b) | 14.81 | (19.62 | ) | 24.09 | 50.31 | 1.90 | 8.60 | |||||||||||||||||
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| |||||||||||||
Net increase from investment operations | 15.34 | (18.48 | ) | 24.98 | 51.24 | 2.94 | 9.60 | |||||||||||||||||
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| |||||||||||||
Distributions from net investment income(c) | (0.53 | ) | (1.10 | ) | (0.89 | ) | (0.91 | ) | (1.04 | ) | (0.97 | ) | ||||||||||||
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| |||||||||||||
Net asset value, end of period | $ | 153.79 | $ | 138.98 | $ | 158.56 | $ | 134.47 | $ | 84.14 | $ | 82.24 | ||||||||||||
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| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 11.05 | %(e) | (11.60 | )% | 18.58 | % | 61.04 | % | 3.55 | % | 13.11 | % | ||||||||||||
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| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.20 | %(g) | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
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| |||||||||||||
Net investment income | 0.70 | %(g) | 0.87 | % | 0.57 | % | 0.77 | % | 1.16 | % | 1.27 | % | ||||||||||||
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 6,436,126 | $ | 5,934,551 | $ | 4,820,372 | $ | 3,529,895 | $ | 1,678,603 | $ | 1,377,486 | ||||||||||||
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| |||||||||||||
Portfolio turnover rate(h) | 12 | % | 12 | % | 10 | % | 11 | % | 20 | % | 15 | % | ||||||||||||
|
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|
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|
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
26 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Russell Top 200 Value ETF | ||||||||||||||||||||||||
Six Months Ended (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 65.15 | $ | 69.61 | $ | 63.58 | $ | 44.04 | $ | 52.57 | $ | 50.39 | ||||||||||||
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|
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|
|
| |||||||||||||
Net investment income(a) | 0.74 | 1.40 | 1.30 | 1.26 | 1.40 | 1.31 | ||||||||||||||||||
Net realized and unrealized gain(b) | 0.21 | (4.52 | ) | 6.01 | 19.49 | (8.38 | ) | 2.13 | ||||||||||||||||
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|
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| |||||||||||||
Net increase from investment operations | 0.95 | (3.12 | ) | 7.31 | 20.75 | (6.98 | ) | 3.44 | ||||||||||||||||
|
|
|
|
|
|
|
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|
| |||||||||||||
Distributions from net investment income(c) | (0.73 | ) | (1.34 | ) | (1.28 | ) | (1.21 | ) | (1.55 | ) | (1.26 | ) | ||||||||||||
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| |||||||||||||
Net asset value, end of period | $ | 65.37 | $ | 65.15 | $ | 69.61 | $ | 63.58 | $ | 44.04 | $ | 52.57 | ||||||||||||
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|
| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 1.47 | %(e) | (4.37 | )% | 11.56 | % | 47.63 | % | (13.72 | )% | 6.92 | % | ||||||||||||
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|
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|
|
| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.20 | %(g) | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
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|
|
|
|
|
| |||||||||||||
Net investment income | 2.23 | %(g) | 2.17 | % | 1.91 | % | 2.31 | % | 2.56 | % | 2.54 | % | ||||||||||||
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,709,544 | $ | 1,557,158 | $ | 1,287,723 | $ | 1,153,937 | $ | 389,726 | $ | 425,831 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h) | 13 | % | 18 | % | 15 | % | 17 | % | 17 | % | 14 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 27 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Russell Top 200 | Diversified | |
Russell Top 200 Growth(a) | Diversified | |
Russell Top 200 Value | Diversified |
(a) | The Fund intends to be diversified in approximately the same proportion as its underlying index is diversified. The Fund may become non-diversified, as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its underlying index. Shareholder approval will not be sought if the Fund crosses from diversified to non-diversified status due solely to a change in its relative market capitalization or index weighting of one or more constituents of its underlying index. |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
ForeignTaxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise
28 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in
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 | 29 |
Notes to Financial Statements (unaudited) (continued)
connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | Securities Loaned at Value | Cash Collateral Received(a) | Non-Cash at Fair Value(a) | Net Amount | ||||||||||||
Russell Top 200 | ||||||||||||||||
RBC Capital Market LLC. | $ | 64,077 | $ | (64,077 | ) | $ | — | $ | — | |||||||
Wells Fargo Bank N.A. | 116,986 | (116,986 | ) | — | — | |||||||||||
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| |||||||||
$ | 181,063 | $ | (181,063 | ) | $ | — | $ | — | ||||||||
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Russell Top 200 Growth | ||||||||||||||||
Barclays Bank PLC. | $ | 18,472 | $ | (18,472 | ) | $ | — | $ | — | |||||||
BofA Securities, Inc. | 45,876,057 | (45,876,057 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC. | 841,824 | (841,824 | ) | — | — | |||||||||||
Jefferies LLC. | 1,495,282 | (1,495,282 | ) | — | — | |||||||||||
RBC Capital Market LLC. | 69,017 | (69,017 | ) | — | — | |||||||||||
SG Americas Securities LLC. | 3,138,829 | (3,138,829 | ) | — | — | |||||||||||
UBS AG | 992,674 | (992,674 | ) | — | — | |||||||||||
Virtu Americas LLC. | 616,790 | (616,790 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. | 15,042,608 | (15,042,608 | ) | — | — | |||||||||||
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$ | 68,091,553 | $ | (68,091,553 | ) | $ | — | $ | — | ||||||||
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Russell Top 200 Value | ||||||||||||||||
UBS AG | $ | 433,818 | $ | (429,661 | ) | $ | — | $ | 4,157 |
(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 Funds’ Statements 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 to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
30 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |||
Russell Top 200 | 0.15 | % | ||
Russell Top 200 Growth | 0.20 | |||
Russell Top 200 Value | 0.20 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. Each Fund does not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Amounts | |||
Russell Top 200 | $ | 2,302 | ||
Russell Top 200 Growth | 20,563 | |||
Russell Top 200 Value | 1,245 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
Russell Top 200 | $ | 15,144,123 | $ | 11,251,609 | $ | (5,358,059 | ) | |||||
Russell Top 200 Growth | 377,820,217 | 416,467,370 | (26,203,412 | ) | ||||||||
Russell Top 200 Value | 182,295,048 | 107,588,757 | (18,767,837 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 31 |
Notes to Financial Statements (unaudited) (continued)
7. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Russell Top 200 | $ | 25,004,864 | $ | 24,866,288 | ||||
Russell Top 200 Growth | 765,190,627 | 763,687,769 | ||||||
Russell Top 200 Value | 214,886,638 | 210,784,818 |
For the six months ended September 30, 2023, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Russell Top 200 | $ | 132,599,266 | $ | 108,188,363 | ||||
Russell Top 200 Growth | 737,968,814 | 896,083,001 | ||||||
Russell Top 200 Value | 378,889,836 | 232,483,424 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring Capital Loss Carryforwards | |||
Russell Top 200 | $ | 23,957,521 | ||
Russell Top 200 Growth | 288,680,613 | |||
Russell Top 200 Value | 49,966,749 |
As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Russell Top 200 | $ | 854,353,451 | $ | 87,973,330 | $ | (60,344,100 | ) | $ | 27,629,230 | |||||||
Russell Top 200 Growth | 5,617,044,957 | 1,002,326,927 | (102,098,858 | ) | 900,228,069 | |||||||||||
Russell Top 200 Value | 1,718,540,606 | 118,137,034 | (117,182,811 | ) | 954,223 |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
32 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which certain Funds invest.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Russell Top 200 | ||||||||||||||||
Shares sold | 1,300,000 | $ | 132,934,356 | 3,600,000 | $ | 333,290,298 | ||||||||||
Shares redeemed | (1,050,000 | ) | (108,430,614 | ) | (5,000,000 | ) | (468,079,179 | ) | ||||||||
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250,000 | $ | 24,503,742 | (1,400,000 | ) | $ | (134,788,881 | ) | |||||||||
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N O T E S T O F I N A N C I A L S T A T E M E N T S | 33 |
Notes to Financial Statements (unaudited) (continued)
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Russell Top 200 Growth | ||||||||||||||||
Shares sold | 4,850,000 | $ | 739,349,916 | 18,450,000 | $ | 2,459,950,957 | ||||||||||
Shares redeemed | (5,700,000 | ) | (897,661,618 | ) | (6,150,000 | ) | (814,297,086 | ) | ||||||||
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(850,000 | ) | $ | (158,311,702 | ) | 12,300,000 | $ | 1,645,653,871 | |||||||||
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Russell Top 200 Value | ||||||||||||||||
Shares sold | 5,700,000 | $ | 380,128,936 | 11,250,000 | $ | 736,022,834 | ||||||||||
Shares redeemed | (3,450,000 | ) | (229,082,065 | ) | (5,850,000 | ) | (374,305,472 | ) | ||||||||
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2,250,000 | $ | 151,046,871 | 5,400,000 | $ | 361,717,362 | |||||||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
34 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Board Review and Approval of Investment Advisory Contract
iShares Russell Top 200 ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
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calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares Russell Top 200 Growth ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet
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Board Review and Approval of Investment Advisory Contract (continued)
applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
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Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares Russell Top 200 Value ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
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Board Review and Approval of Investment Advisory Contract (continued)
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T AD V I S O R Y C O N T R A C T | 39 |
Board Review and Approval of Investment Advisory Contract (continued)
relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Supplemental Information (unaudited)
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
42 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
GENERAL INFORMATION | 43 |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
NVS | Non-Voting Shares | |
S&P | Standard & Poor’s |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE Russell, 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.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-305-0923
SEPTEMBER 30, 2023 |
| 2023 Semi-Annual Report (Unaudited)
|
iShares Trust
· | iShares Russell 3000 ETF | IWV | NYSE Arca |
· | iShares Russell Mid-Cap Value ETF | IWS | NYSE Arca |
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023
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6-Month
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12-Month
| |||||||
U.S. large cap equities | 5.18% | 21.62% | ||||||
U.S. small cap equities | (0.19) | 8.93 | ||||||
International equities | (1.28) | 25.65 | ||||||
Emerging market | (2.05) | 11.70 | ||||||
3-month Treasury bills | 2.50 | 4.47 | ||||||
U.S. Treasury securities | (6.98) | (2.90) | ||||||
U.S. investment grade | (4.05) | 0.64 | ||||||
Tax-exempt municipal | (4.05) | 2.66 | ||||||
U.S. high yield bonds | 2.22 | 10.28 | ||||||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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Fund Summary as of September 30, 2023
| iShares® Russell 3000 ETF |
Investment Objective
The iShares Russell 3000 ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of U.S. equities, as represented by the Russell 3000® Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 4.79 | % | 20.29 | % | 8.96 | % | 11.10 | % | 20.29 | % | 53.61 | % | 186.47 | % | ||||||||||||||||||
Fund Market | 4.81 | 20.16 | 8.96 | 11.09 | 20.16 | 53.58 | 186.24 | |||||||||||||||||||||||||
Index | 4.86 | 20.46 | 9.14 | 11.28 | 20.46 | 54.88 | 191.20 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ 1,047.90 | $ 1.02 | $ 1,000.00 | $ 1,024.00 | $ 1.01 | 0.20 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Information Technology | 25.8 | % | ||
Financials | 13.3 | |||
Health Care | 13.3 | |||
Consumer Discretionary | 10.8 | |||
Industrials | 9.8 | |||
Communication Services | 8.2 | |||
Consumer Staples | 6.1 | |||
Energy | 4.8 | |||
Real Estate | 2.9 | |||
Materials | 2.7 | |||
Utilities | 2.3 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Apple Inc. | 6.1 | % | ||
Microsoft Corp. | 5.6 | |||
Amazon.com, Inc. | 2.8 | |||
NVIDIA Corp. | 2.5 | |||
Alphabet, Inc., Class A | 1.9 | |||
Tesla, Inc. | 1.7 | |||
Alphabet, Inc., Class C, NVS | 1.6 | |||
Meta Platforms, Inc., Class A | 1.6 | |||
Berkshire Hathaway, Inc., Class B | 1.6 | |||
Exxon Mobil Corp. | 1.1 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of September 30, 2023
| iShares® Russell Mid-Cap Value ETF |
Investment Objective
The iShares Russell Mid-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell MidCap® Value Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (0.86 | )% | 10.86 | % | 5.00 | % | 7.70 | % | 10.86 | % | 27.61 | % | 109.98 | % | ||||||||||||||||||
Fund Market | (0.84 | ) | 10.76 | 5.00 | 7.70 | 10.76 | 27.61 | 110.00 | ||||||||||||||||||||||||
Index | (0.77 | ) | 11.05 | 5.18 | 7.92 | 11.05 | 28.74 | 114.20 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ 991.40 | $ 1.16 | $ 1,000.00 | $ 1,023.83 | $ 1.16 | 0.23 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Industrials | 18.9 | % | ||
Financials | 16.8 | |||
Real Estate | 10.1 | |||
Information Technology | 9.6 | |||
Consumer Discretionary | 9.2 | |||
Materials | 7.8 | |||
Utilities | 7.4 | |||
Health Care | 7.1 | |||
Energy | 5.8 | |||
Consumer Staples | 4.0 | |||
Communication Services | 3.3 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Phillips 66 | 0.8 | % | ||
Parker-Hannifin Corp. | 0.7 | |||
Marvell Technology, Inc. | 0.7 | |||
Aflac, Inc. | 0.7 | |||
Carrier Global Corp. | 0.7 | |||
Arthur J. Gallagher & Co. | 0.7 | |||
PACCAR, Inc. | 0.6 | |||
Williams Cos., Inc. (The) | 0.6 | |||
Welltower, Inc. | 0.6 | |||
ON Semiconductor Corp. | 0.6 |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
6 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.5% | ||||||||
AAR Corp.(a) | 9,272 | $ | 551,962 | |||||
AeroVironment, Inc.(a) | 6,771 | 755,170 | ||||||
AerSale Corp.(a) | 7,339 | 109,645 | ||||||
Archer Aviation, Inc., Class A(a)(b) | 40,527 | 205,067 | ||||||
Astronics Corp.(a) | 7,619 | 120,837 | ||||||
Axon Enterprise, Inc.(a) | 18,236 | 3,628,782 | ||||||
Boeing Co. (The)(a) | 146,512 | 28,083,420 | ||||||
BWX Technologies, Inc. | 24,889 | 1,866,177 | ||||||
Cadre Holdings, Inc. | 6,629 | 176,663 | ||||||
Curtiss-Wright Corp. | 9,920 | 1,940,650 | ||||||
Ducommun, Inc.(a) | 2,579 | 112,212 | ||||||
General Dynamics Corp. | 64,106 | 14,165,503 | ||||||
HEICO Corp. | 11,750 | 1,902,678 | ||||||
HEICO Corp., Class A | 21,289 | 2,750,965 | ||||||
Hexcel Corp. | 21,279 | 1,386,114 | ||||||
Howmet Aerospace, Inc. | 99,438 | 4,599,007 | ||||||
Huntington Ingalls Industries, Inc. | 10,167 | 2,079,965 | ||||||
Kaman Corp. | 7,843 | 154,115 | ||||||
Kratos Defense & Security Solutions, Inc.(a) | 33,066 | 496,651 | ||||||
L3Harris Technologies, Inc. | 49,605 | 8,637,223 | ||||||
Leonardo DRS, Inc.(a)(b) | 13,120 | 219,104 | ||||||
Lockheed Martin Corp. | 59,320 | 24,259,507 | ||||||
Mercury Systems, Inc.(a) | 12,970 | 481,057 | ||||||
Moog, Inc., Class A | 7,596 | 858,044 | ||||||
National Presto Industries, Inc. | 2,221 | 160,934 | ||||||
Northrop Grumman Corp. | 37,565 | 16,535,737 | ||||||
Park Aerospace Corp. | 6,295 | 97,761 | ||||||
Rocket Lab U.S.A., Inc., Class A(a)(b) | 80,009 | 350,439 | ||||||
RTX Corp. | 383,958 | 27,633,457 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 27,868 | 449,790 | ||||||
Textron, Inc. | 52,114 | 4,072,188 | ||||||
TransDigm Group, Inc.(a) | 13,747 | 11,590,508 | ||||||
Triumph Group, Inc.(a) | 15,738 | 120,553 | ||||||
V2X, Inc.(a) | 3,297 | 170,323 | ||||||
Virgin Galactic Holdings, Inc., Class A(a)(b) | 65,716 | 118,289 | ||||||
Woodward, Inc. | 15,174 | 1,885,521 | ||||||
|
| |||||||
162,726,018 | ||||||||
Air Freight & Logistics — 0.5% | ||||||||
Air Transport Services Group, Inc.(a)(b) | 15,659 | 326,803 | ||||||
CH Robinson Worldwide, Inc. | 30,384 | 2,616,974 | ||||||
Expeditors International of Washington, Inc. | 40,314 | 4,621,194 | ||||||
FedEx Corp. | 60,867 | 16,124,886 | ||||||
Forward Air Corp. | 7,245 | 498,021 | ||||||
GXO Logistics, Inc.(a) | 30,667 | 1,798,620 | ||||||
Hub Group, Inc., Class A(a) | 8,563 | 672,538 | ||||||
United Parcel Service, Inc., Class B | 190,623 | 29,712,407 | ||||||
|
| |||||||
56,371,443 | ||||||||
Automobile Components — 0.2% | ||||||||
Adient PLC(a) | 24,561 | 901,389 | ||||||
American Axle & Manufacturing Holdings, Inc.(a) | 29,787 | 216,254 | ||||||
Aptiv PLC(a) | 70,384 | 6,939,159 | ||||||
Atmus Filtration Technologies, Inc.(a)(b) | 5,020 | 104,667 | ||||||
BorgWarner, Inc. | 61,645 | 2,488,609 | ||||||
Cooper-Standard Holdings, Inc.(a)(b) | 703 | 9,434 | ||||||
Dana, Inc. | 33,703 | 494,423 | ||||||
Dorman Products, Inc.(a) | 7,327 | 555,094 | ||||||
Fox Factory Holding Corp.(a) | 11,099 | 1,099,689 | ||||||
Gentex Corp. | 61,995 | 2,017,317 | ||||||
Gentherm, Inc.(a) | 8,366 | 453,939 | ||||||
Goodyear Tire & Rubber Co. (The)(a) | 74,352 | 924,195 |
Security | Shares | Value | ||||||
Automobile Components (continued) | ||||||||
Holley, Inc.(a) | 20,228 | $ | 100,938 | |||||
LCI Industries | 6,869 | 806,558 | ||||||
Lear Corp. | 15,738 | 2,112,040 | ||||||
Luminar Technologies, Inc., Class A(a)(b) | 65,356 | 297,370 | ||||||
Modine Manufacturing Co.(a) | 14,087 | 644,480 | ||||||
Patrick Industries, Inc.(b) | 5,832 | 437,750 | ||||||
Phinia, Inc. | 12,327 | 330,240 | ||||||
QuantumScape Corp., Class A(a)(b) | 79,415 | 531,286 | ||||||
Solid Power, Inc., Class A(a)(b) | 37,374 | 75,495 | ||||||
Standard Motor Products, Inc. | 5,023 | 168,873 | ||||||
Stoneridge, Inc.(a) | 6,748 | 135,432 | ||||||
Visteon Corp.(a) | 6,898 | 952,407 | ||||||
XPEL, Inc.(a) | 6,564 | 506,150 | ||||||
|
| |||||||
23,303,188 | ||||||||
Automobiles — 1.9% | ||||||||
Fisker, Inc., Class A(a)(b) | 40,653 | 260,992 | ||||||
Ford Motor Co. | 1,029,281 | 12,783,670 | ||||||
General Motors Co. | 360,371 | 11,881,432 | ||||||
Harley-Davidson, Inc. | 35,217 | 1,164,274 | ||||||
Lucid Group, Inc.(a)(b) | 195,255 | 1,091,476 | ||||||
Rivian Automotive, Inc., Class A(a)(b) | 174,715 | 4,242,080 | ||||||
Tesla, Inc.(a) | 724,980 | 181,404,496 | ||||||
Thor Industries, Inc. | 13,163 | 1,252,196 | ||||||
Winnebago Industries, Inc. | 7,727 | 459,370 | ||||||
Workhorse Group, Inc.(a)(b) | 34,984 | 14,497 | ||||||
|
| |||||||
214,554,483 | ||||||||
Banks — 3.3% | ||||||||
1st Source Corp. | 3,999 | 168,318 | ||||||
ACNB Corp. | 3,146 | 99,445 | ||||||
Amalgamated Financial Corp. | 5,003 | 86,152 | ||||||
Amerant Bancorp, Inc., Class A | 7,656 | 133,521 | ||||||
American National Bankshares, Inc. | 3,298 | 125,126 | ||||||
Ameris Bancorp | 16,322 | 626,602 | ||||||
Arrow Financial Corp. | 4,933 | 83,960 | ||||||
Associated Banc-Corp | 39,075 | 668,573 | ||||||
Atlantic Union Bankshares Corp. | 19,288 | 555,109 | ||||||
Axos Financial, Inc.(a) | 15,481 | 586,111 | ||||||
Banc of California, Inc. | 14,370 | 177,901 | ||||||
BancFirst Corp. | 5,892 | 511,013 | ||||||
Bancorp, Inc. (The)(a) | 12,700 | 438,150 | ||||||
Bank First Corp. | 2,911 | 224,584 | ||||||
Bank of America Corp. | 1,830,201 | 50,110,903 | ||||||
Bank of Hawaii Corp. | 10,335 | 513,546 | ||||||
Bank of Marin Bancorp | 4,448 | 81,309 | ||||||
Bank of NT Butterfield & Son Ltd. (The) | 13,884 | 375,979 | ||||||
Bank OZK | 29,159 | 1,080,924 | ||||||
BankUnited, Inc. | 20,095 | 456,156 | ||||||
Banner Corp. | 9,732 | 412,442 | ||||||
Bar Harbor Bankshares | 4,756 | 112,384 | ||||||
BayCom Corp. | 6,142 | 117,988 | ||||||
BCB Bancorp, Inc. | 5,691 | 63,398 | ||||||
Berkshire Hills Bancorp, Inc. | 11,818 | 236,951 | ||||||
Blue Foundry Bancorp(a)(b) | 8,752 | 73,254 | ||||||
BOK Financial Corp. | 7,695 | 615,446 | ||||||
Bridgewater Bancshares, Inc.(a) | 8,073 | 76,532 | ||||||
Brookline Bancorp, Inc. | 17,954 | 163,561 | ||||||
Burke & Herbert Financial Services Corp. | 1,672 | 77,689 | ||||||
Business First Bancshares, Inc. | 6,465 | 121,283 | ||||||
Byline Bancorp, Inc. | 7,270 | 143,292 | ||||||
Cadence Bank | 38,189 | 810,371 | ||||||
Cambridge Bancorp | 1,654 | 103,028 | ||||||
Camden National Corp. | 3,678 | 103,793 |
SCHEDULES OF INVESTMENTS | 7 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Capital City Bank Group, Inc. | 4,510 | $ | 134,533 | |||||
Capitol Federal Financial, Inc. | 39,300 | 187,461 | ||||||
Capstar Financial Holdings, Inc. | 5,840 | 82,870 | ||||||
Carter Bankshares, Inc.(a)(b) | 8,212 | 102,896 | ||||||
Cathay General Bancorp | 17,703 | 615,356 | ||||||
Central Pacific Financial Corp. | 8,258 | 137,743 | ||||||
Citigroup, Inc. | 511,747 | 21,048,154 | ||||||
Citizens & Northern Corp. | 5,745 | 100,825 | ||||||
Citizens Financial Group, Inc. | 122,837 | 3,292,032 | ||||||
Citizens Financial Services, Inc.(b) | 1,333 | 63,877 | ||||||
City Holding Co. | 3,834 | 346,402 | ||||||
Civista Bancshares, Inc. | 5,954 | 92,287 | ||||||
CNB Financial Corp. | 5,001 | 90,568 | ||||||
Coastal Financial Corp.(a) | 2,764 | 118,603 | ||||||
Colony Bankcorp, Inc. | 11,822 | 118,161 | ||||||
Columbia Banking System, Inc. | 53,854 | 1,093,236 | ||||||
Columbia Financial, Inc.(a) | 8,514 | 133,755 | ||||||
Comerica, Inc. | 33,557 | 1,394,293 | ||||||
Commerce Bancshares, Inc. | 29,976 | 1,438,248 | ||||||
Community Bank System, Inc. | 14,122 | 596,090 | ||||||
Community Trust Bancorp, Inc. | 3,804 | 130,325 | ||||||
ConnectOne Bancorp, Inc. | 10,316 | 183,934 | ||||||
CrossFirst Bankshares, Inc.(a)(b) | 12,704 | 128,183 | ||||||
Cullen/Frost Bankers, Inc. | 15,994 | 1,458,813 | ||||||
Customers Bancorp, Inc.(a) | 7,181 | 247,385 | ||||||
CVB Financial Corp. | 34,502 | 571,698 | ||||||
Dime Community Bancshares, Inc. | 9,445 | 188,522 | ||||||
Eagle Bancorp, Inc. | 7,869 | 168,790 | ||||||
East West Bancorp, Inc. | 36,849 | 1,942,311 | ||||||
Eastern Bankshares, Inc. | 39,748 | 498,440 | ||||||
Enterprise Bancorp, Inc. | 4,034 | 110,451 | ||||||
Enterprise Financial Services Corp. | 9,250 | 346,875 | ||||||
Equity Bancshares, Inc., Class A | 3,926 | 94,499 | ||||||
Esquire Financial Holdings, Inc. | 2,247 | 102,665 | ||||||
Farmers & Merchants Bancorp, Inc. | 4,296 | 75,309 | ||||||
Farmers National Banc Corp. | 10,690 | 123,576 | ||||||
FB Financial Corp. | 10,291 | 291,853 | ||||||
Fidelity D&D Bancorp, Inc. | 2,291 | 104,011 | ||||||
Fifth Third Bancorp | 178,668 | 4,525,660 | ||||||
Financial Institutions, Inc. | 4,571 | 76,930 | ||||||
First Bancorp, Inc. (The) | 3,745 | 88,008 | ||||||
First BanCorp/Puerto Rico | 48,397 | 651,424 | ||||||
First Bancorp/Southern Pines NC | 8,919 | 250,981 | ||||||
First Bancshares, Inc. (The) | 9,075 | 244,753 | ||||||
First Bank | 9,280 | 100,038 | ||||||
First Busey Corp. | 13,823 | 265,678 | ||||||
First Business Financial Services, Inc. | 3,268 | 98,073 | ||||||
First Citizens BancShares, Inc., Class A | 2,887 | 3,984,349 | ||||||
First Commonwealth Financial Corp. | 23,135 | 282,478 | ||||||
First Community Bankshares, Inc. | 4,354 | 128,225 | ||||||
First Financial Bancorp | 24,566 | 481,494 | ||||||
First Financial Bankshares, Inc. | 34,060 | 855,587 | ||||||
First Financial Corp. | 2,765 | 93,485 | ||||||
First Foundation, Inc. | 11,467 | 69,719 | ||||||
First Hawaiian, Inc. | 34,969 | 631,190 | ||||||
First Horizon Corp. | 147,334 | 1,623,621 | ||||||
First Interstate BancSystem, Inc., Class A | 23,402 | 583,646 | ||||||
First Merchants Corp. | 14,149 | 393,625 | ||||||
First Mid Bancshares, Inc. | 3,312 | 87,967 | ||||||
First of Long Island Corp. (The) | 6,532 | 75,183 | ||||||
Five Star Bancorp | 3,879 | 77,813 | ||||||
Flushing Financial Corp. | 7,483 | 98,252 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
FNB Corp. | 92,850 | $ | 1,001,851 | |||||
Fulton Financial Corp. | 43,533 | 527,185 | ||||||
German American Bancorp, Inc. | 6,419 | 173,891 | ||||||
Glacier Bancorp, Inc. | 28,128 | 801,648 | ||||||
Great Southern Bancorp, Inc. | 2,549 | 122,148 | ||||||
Guaranty Bancshares, Inc. | 3,094 | 88,767 | ||||||
Hancock Whitney Corp. | 23,338 | 863,273 | ||||||
Hanmi Financial Corp. | 8,508 | 138,085 | ||||||
HarborOne Bancorp, Inc. | 16,861 | 160,517 | ||||||
HBT Financial, Inc. | 5,062 | 92,331 | ||||||
Heartland Financial U.S.A., Inc. | 9,517 | 280,085 | ||||||
Heritage Commerce Corp. | 16,334 | 138,349 | ||||||
Heritage Financial Corp. | 9,192 | 149,922 | ||||||
Hilltop Holdings, Inc. | 13,650 | 387,114 | ||||||
Hingham Institution For Savings (The) | 455 | 84,971 | ||||||
Home Bancorp, Inc. | 2,868 | 91,403 | ||||||
Home BancShares, Inc. | 51,842 | 1,085,571 | ||||||
HomeStreet, Inc. | 4,837 | 37,680 | ||||||
HomeTrust Bancshares, Inc. | 5,370 | 116,368 | ||||||
Hope Bancorp, Inc. | 29,353 | 259,774 | ||||||
Horizon Bancorp, Inc. | 10,426 | 111,350 | ||||||
Huntington Bancshares, Inc. | 379,258 | 3,944,283 | ||||||
Independent Bank Corp. | 11,827 | 580,587 | ||||||
Independent Bank Corp. | 5,098 | 93,497 | ||||||
Independent Bank Group, Inc. | 9,101 | 359,945 | ||||||
International Bancshares Corp. | 14,482 | 627,650 | ||||||
John Marshall Bancorp, Inc. | 5,839 | 104,226 | ||||||
JPMorgan Chase & Co. | 758,472 | 109,993,609 | ||||||
Kearny Financial Corp. | 15,478 | 107,263 | ||||||
KeyCorp | 241,522 | 2,598,777 | ||||||
Lakeland Bancorp, Inc. | 17,459 | 220,333 | ||||||
Lakeland Financial Corp. | 5,935 | 281,675 | ||||||
Live Oak Bancshares, Inc.(b) | 8,374 | 242,427 | ||||||
M&T Bank Corp. | 43,368 | 5,483,884 | ||||||
Macatawa Bank Corp. | 9,938 | 89,044 | ||||||
Mercantile Bank Corp. | 4,710 | 145,586 | ||||||
Metrocity Bankshares, Inc. | 7,493 | 147,462 | ||||||
Metropolitan Bank Holding Corp.(a) | 2,430 | 88,160 | ||||||
Mid Penn Bancorp, Inc. | 5,537 | 111,460 | ||||||
Middlefield Banc Corp.(b) | 4,154 | 105,553 | ||||||
Midland States Bancorp, Inc. | 6,168 | 126,691 | ||||||
MidWestOne Financial Group, Inc. | 5,996 | 121,899 | ||||||
MVB Financial Corp. | 5,530 | 124,867 | ||||||
National Bank Holdings Corp., Class A | 8,169 | 243,109 | ||||||
NBT Bancorp, Inc. | 11,816 | 374,449 | ||||||
New York Community Bancorp, Inc., Class A | 186,609 | 2,116,146 | ||||||
Nicolet Bankshares, Inc. | 3,223 | 224,901 | ||||||
Northeast Bank | 2,821 | 124,406 | ||||||
Northfield Bancorp, Inc. | 12,318 | 116,405 | ||||||
Northrim BanCorp, Inc. | 2,457 | 97,346 | ||||||
Northwest Bancshares, Inc. | 26,773 | 273,888 | ||||||
NU Holdings Ltd., Class A(a) | 604,794 | 4,384,756 | ||||||
OceanFirst Financial Corp. | 14,992 | 216,934 | ||||||
OFG Bancorp | 11,498 | 343,330 | ||||||
Old National Bancorp | 76,001 | 1,105,055 | ||||||
Old Second Bancorp, Inc. | 11,794 | 160,516 | ||||||
Orange County Bancorp, Inc. | 2,487 | 107,364 | ||||||
Origin Bancorp, Inc. | 6,933 | 200,156 | ||||||
Orrstown Financial Services, Inc. | 6,300 | 132,363 | ||||||
Pacific Premier Bancorp, Inc. | 22,786 | 495,823 | ||||||
PacWest Bancorp | 29,208 | 231,035 | ||||||
Park National Corp. | 3,520 | 332,710 |
8 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Pathward Financial, Inc. | 7,053 | $ | 325,073 | |||||
Peapack-Gladstone Financial Corp. | 4,798 | 123,069 | ||||||
Peoples Bancorp, Inc. | 9,529 | 241,846 | ||||||
Peoples Financial Services Corp. | 3,196 | 128,160 | ||||||
Pinnacle Financial Partners, Inc. | 20,033 | 1,343,012 | ||||||
PNC Financial Services Group, Inc. (The) | 104,512 | 12,830,938 | ||||||
Popular, Inc. | 18,965 | 1,194,985 | ||||||
Preferred Bank | 2,534 | 157,741 | ||||||
Premier Financial Corp. | 8,832 | 150,674 | ||||||
Primis Financial Corp. | 9,609 | 78,313 | ||||||
Prosperity Bancshares, Inc. | 22,446 | 1,225,103 | ||||||
Provident Financial Services, Inc. | 21,816 | 333,567 | ||||||
QCR Holdings, Inc. | 4,993 | 242,260 | ||||||
RBB Bancorp | 4,835 | 61,791 | ||||||
Red River Bancshares, Inc. | 2,042 | 93,850 | ||||||
Regions Financial Corp. | 244,529 | 4,205,899 | ||||||
Renasant Corp. | 16,064 | 420,716 | ||||||
Republic Bancorp, Inc., Class A | 3,106 | 136,819 | ||||||
S&T Bancorp, Inc. | 8,869 | 240,173 | ||||||
Sandy Spring Bancorp, Inc. | 10,857 | 232,666 | ||||||
Seacoast Banking Corp. of Florida | 16,955 | 372,332 | ||||||
ServisFirst Bancshares, Inc. | 13,276 | 692,609 | ||||||
Shore Bancshares, Inc. | 6,730 | 70,800 | ||||||
Sierra Bancorp | 6,923 | 131,260 | ||||||
Simmons First National Corp., Class A | 34,010 | 576,810 | ||||||
SmartFinancial, Inc.(b) | 6,353 | 135,764 | ||||||
South Plains Financial, Inc. | 3,505 | 92,672 | ||||||
Southern First Bancshares, Inc.(a) | 2,882 | 77,641 | ||||||
Southern Missouri Bancorp, Inc. | 2,526 | 97,731 | ||||||
Southside Bancshares, Inc. | 9,146 | 262,490 | ||||||
SouthState Corp. | 19,263 | 1,297,556 | ||||||
Stellar Bancorp, Inc. | 13,460 | 286,967 | ||||||
Stock Yards Bancorp, Inc. | 7,509 | 295,029 | ||||||
Summit Financial Group, Inc. | 4,364 | 98,365 | ||||||
Synovus Financial Corp. | 37,110 | 1,031,658 | ||||||
Texas Capital Bancshares, Inc.(a) | 12,893 | 759,398 | ||||||
Third Coast Bancshares, Inc.(a) | 1,123 | 19,203 | ||||||
Timberland Bancorp, Inc. | 3,760 | 101,896 | ||||||
Tompkins Financial Corp. | 3,430 | 168,036 | ||||||
Towne Bank | 16,789 | 384,972 | ||||||
TriCo Bancshares | 7,199 | 230,584 | ||||||
Triumph Financial, Inc.(a) | 5,754 | 372,802 | ||||||
Truist Financial Corp. | 348,829 | 9,979,998 | ||||||
TrustCo Bank Corp. | 5,288 | 144,310 | ||||||
Trustmark Corp. | 16,710 | 363,108 | ||||||
U.S. Bancorp | 401,856 | 13,285,359 | ||||||
UMB Financial Corp. | 11,068 | 686,769 | ||||||
United Bankshares, Inc. | 36,032 | 994,123 | ||||||
United Community Banks, Inc. | 25,283 | 642,441 | ||||||
Univest Financial Corp. | 7,105 | 123,485 | ||||||
Valley National Bancorp | 111,208 | 951,940 | ||||||
Veritex Holdings, Inc. | 12,013 | 215,633 | ||||||
Washington Federal, Inc. | 16,850 | 431,697 | ||||||
Washington Trust Bancorp, Inc. | 3,548 | 93,419 | ||||||
Webster Financial Corp. | 46,132 | 1,859,581 | ||||||
Wells Fargo & Co. | 964,309 | 39,401,666 | ||||||
WesBanco, Inc. | 16,711 | 408,083 | ||||||
West BanCorp, Inc. | 5,670 | 92,478 | ||||||
Westamerica BanCorp | 7,741 | 334,798 | ||||||
Western Alliance Bancorp | 27,437 | 1,261,279 | ||||||
Wintrust Financial Corp. | 16,734 | 1,263,417 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
WSFS Financial Corp. | 16,322 | $ | 595,753 | |||||
Zions Bancorp N.A | 39,109 | 1,364,513 | ||||||
|
| |||||||
363,566,936 | ||||||||
Beverages — 1.4% | ||||||||
Boston Beer Co., Inc. (The), Class A, NVS(a) | 2,384 | 928,639 | ||||||
Brown-Forman Corp., Class A | 12,061 | 700,744 | ||||||
Brown-Forman Corp., Class B, NVS | 48,310 | 2,787,004 | ||||||
Celsius Holdings, Inc.(a) | 12,616 | 2,164,906 | ||||||
Coca-Cola Co. (The) | 1,023,351 | 57,287,189 | ||||||
Coca-Cola Consolidated, Inc. | 1,172 | 745,767 | ||||||
Constellation Brands, Inc., Class A | 42,461 | 10,671,723 | ||||||
Duckhorn Portfolio, Inc. (The)(a) | 15,482 | 158,845 | ||||||
Keurig Dr Pepper, Inc. | 249,970 | 7,891,553 | ||||||
MGP Ingredients, Inc. | 3,827 | 403,672 | ||||||
Molson Coors Beverage Co., Class B | 45,857 | 2,916,047 | ||||||
Monster Beverage Corp.(a) | 195,156 | 10,333,510 | ||||||
National Beverage Corp.(a) | 6,654 | 312,871 | ||||||
PepsiCo, Inc. | 361,978 | 61,333,552 | ||||||
Primo Water Corp. | 44,312 | 611,506 | ||||||
Vita Coco Co., Inc. (The)(a)(b) | 6,530 | 170,041 | ||||||
|
| |||||||
159,417,569 | ||||||||
Biotechnology — 2.6% | ||||||||
2seventy bio, Inc.(a)(b) | 19,085 | 74,813 | ||||||
4D Molecular Therapeutics, Inc.(a)(b) | 7,559 | 96,226 | ||||||
89bio, Inc.(a) | 16,057 | 247,920 | ||||||
AbbVie, Inc. | 463,672 | 69,114,948 | ||||||
ACADIA Pharmaceuticals, Inc.(a) | 29,895 | 623,012 | ||||||
ACELYRIN, Inc.(a) | 10,719 | 109,012 | ||||||
Adicet Bio, Inc.(a)(b) | 8,409 | 11,520 | ||||||
ADMA Biologics, Inc.(a)(b) | 44,328 | 158,694 | ||||||
Aerovate Therapeutics, Inc.(a) | 4,572 | 62,042 | ||||||
Agenus, Inc.(a)(b) | 61,026 | 68,959 | ||||||
Agios Pharmaceuticals, Inc.(a)(b) | 16,068 | 397,683 | ||||||
Akero Therapeutics, Inc.(a) | 13,949 | 705,540 | ||||||
Aldeyra Therapeutics, Inc.(a) | 14,494 | 96,820 | ||||||
Alector, Inc.(a) | 15,968 | 103,473 | ||||||
Alkermes PLC(a) | 41,976 | 1,175,748 | ||||||
Allakos, Inc.(a) | 24,920 | 56,568 | ||||||
Allogene Therapeutics, Inc.(a)(b) | 24,578 | 77,912 | ||||||
Alnylam Pharmaceuticals, Inc.(a) | 32,733 | 5,797,014 | ||||||
Alpine Immune Sciences, Inc.(a) | 9,444 | 108,134 | ||||||
ALX Oncology Holdings, Inc.(a) | 9,054 | 43,459 | ||||||
Amgen, Inc. | 140,360 | 37,723,154 | ||||||
Amicus Therapeutics, Inc.(a) | 69,575 | 846,032 | ||||||
AnaptysBio, Inc.(a) | 7,178 | 128,917 | ||||||
Anavex Life Sciences Corp.(a)(b) | 19,051 | 124,784 | ||||||
Anika Therapeutics, Inc.(a) | 5,928 | 110,439 | ||||||
Apellis Pharmaceuticals, Inc.(a)(b) | 26,135 | 994,175 | ||||||
Apogee Therapeutics, Inc.(a)(b) | 5,297 | 112,826 | ||||||
Arbutus Biopharma Corp.(a) | 47,875 | 97,186 | ||||||
Arcellx, Inc.(a) | 10,735 | 385,172 | ||||||
Arcturus Therapeutics Holdings, Inc.(a)(b) | 8,668 | 221,467 | ||||||
Arcus Biosciences, Inc.(a)(b) | 11,934 | 214,215 | ||||||
Arcutis Biotherapeutics, Inc.(a) | 11,321 | 60,115 | ||||||
Ardelyx, Inc.(a) | 55,328 | 225,738 | ||||||
Arrowhead Pharmaceuticals, Inc.(a) | 26,634 | 715,656 | ||||||
Astria Therapeutics, Inc.(a)(b) | 11,179 | 83,395 | ||||||
Atara Biotherapeutics, Inc.(a) | 25,997 | 38,476 | ||||||
Aura Biosciences, Inc.(a)(b) | 8,590 | 77,052 | ||||||
Aurinia Pharmaceuticals, Inc.(a)(b) | 37,251 | 289,440 | ||||||
Avid Bioservices, Inc.(a) | 16,536 | 156,100 | ||||||
Avidity Biosciences, Inc.(a)(b) | 15,510 | 98,954 |
SCHEDULES OF INVESTMENTS | 9 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Avita Medical, Inc.(a)(b) | 7,051 | $ | 103,015 | |||||
Beam Therapeutics, Inc.(a)(b) | 17,436 | 419,336 | ||||||
BioCryst Pharmaceuticals, Inc.(a)(b) | 45,536 | 322,395 | ||||||
Biogen, Inc.(a) | 37,648 | 9,675,913 | ||||||
Biohaven Ltd.(a) | 16,477 | 428,567 | ||||||
BioMarin Pharmaceutical, Inc.(a)(b) | 49,260 | 4,358,525 | ||||||
Biomea Fusion, Inc.(a)(b) | 5,160 | 71,002 | ||||||
Bioxcel Therapeutics, Inc.(a)(b) | 3,800 | 9,614 | ||||||
Bluebird Bio, Inc.(a)(b) | 17,096 | 51,972 | ||||||
Blueprint Medicines Corp.(a)(b) | 15,368 | 771,781 | ||||||
Bridgebio Pharma, Inc.(a) | 28,490 | 751,281 | ||||||
Cabaletta Bio, Inc.(a) | 9,302 | 141,576 | ||||||
CareDx, Inc.(a) | 12,729 | 89,103 | ||||||
Caribou Biosciences, Inc.(a)(b) | 17,701 | 84,611 | ||||||
Carisma Therapeutics, Inc.(b) | 13,754 | 58,179 | ||||||
Catalyst Pharmaceuticals, Inc.(a) | 24,105 | 281,788 | ||||||
Celldex Therapeutics, Inc.(a) | 13,294 | 365,851 | ||||||
Century Therapeutics, Inc.(a)(b) | 10,097 | 20,194 | ||||||
Cerevel Therapeutics Holdings, Inc.(a)(b) | 15,461 | 337,514 | ||||||
Cogent Biosciences, Inc.(a) | 24,440 | 238,290 | ||||||
Coherus Biosciences, Inc.(a) | 16,382 | 61,269 | ||||||
Compass Therapeutics, Inc.(a) | 32,910 | 64,833 | ||||||
Crinetics Pharmaceuticals, Inc.(a) | 16,872 | 501,773 | ||||||
Cullinan Oncology, Inc.(a) | 8,034 | 72,708 | ||||||
Cytokinetics, Inc.(a)(b) | 24,194 | 712,755 | ||||||
Day One Biopharmaceuticals, Inc.(a)(b) | 18,010 | 220,983 | ||||||
Deciphera Pharmaceuticals, Inc.(a)(b) | 15,938 | 202,731 | ||||||
Denali Therapeutics, Inc.(a)(b) | 31,915 | 658,407 | ||||||
Design Therapeutics, Inc.(a) | 8,794 | 20,754 | ||||||
Disc Medicine, Inc.(a) | 2,099 | 98,611 | ||||||
Dynavax Technologies Corp.(a)(b) | 36,890 | 544,865 | ||||||
Dyne Therapeutics, Inc.(a)(b) | 9,394 | 84,170 | ||||||
Eagle Pharmaceuticals, Inc.(a) | 3,804 | 59,989 | ||||||
Editas Medicine, Inc.(a) | 18,474 | 144,097 | ||||||
Emergent BioSolutions, Inc.(a)(b) | 11,829 | 40,219 | ||||||
Enanta Pharmaceuticals, Inc.(a) | 4,779 | 53,381 | ||||||
Entrada Therapeutics, Inc.(a)(b) | 7,386 | 116,699 | ||||||
EQRx, Inc.(a) | 106,248 | 235,871 | ||||||
Erasca, Inc.(a) | 17,089 | 33,665 | ||||||
Exact Sciences Corp.(a) | 47,746 | 3,257,232 | ||||||
Exelixis, Inc.(a) | 82,092 | 1,793,710 | ||||||
Fate Therapeutics, Inc.(a) | 20,045 | 42,495 | ||||||
FibroGen, Inc.(a) | 22,091 | 19,062 | ||||||
Genelux Corp.(a)(b) | 5,426 | 132,883 | ||||||
Generation Bio Co.(a)(b) | 20,751 | 78,646 | ||||||
Geron Corp.(a) | 132,070 | 279,988 | ||||||
Gilead Sciences, Inc. | 327,974 | 24,578,372 | ||||||
Halozyme Therapeutics, Inc.(a) | 35,405 | 1,352,471 | ||||||
Heron Therapeutics, Inc.(a)(b) | 28,006 | 28,846 | ||||||
HilleVax, Inc.(a) | 5,759 | 77,459 | ||||||
Horizon Therapeutics PLC(a) | 58,811 | 6,803,845 | ||||||
Humacyte, Inc.(a) | 24,168 | 70,812 | ||||||
Icosavax, Inc.(a) | 11,571 | 89,675 | ||||||
Ideaya Biosciences, Inc.(a) | 14,104 | 380,526 | ||||||
IGM Biosciences, Inc.(a) | 5,312 | 44,355 | ||||||
ImmunityBio, Inc.(a)(b) | 21,535 | 36,394 | ||||||
ImmunoGen, Inc.(a) | 62,758 | 995,970 | ||||||
Immunovant, Inc.(a) | 15,952 | 612,397 | ||||||
Incyte Corp.(a) | 48,753 | 2,816,461 | ||||||
Inhibrx, Inc.(a)(b) | 7,541 | 138,377 | ||||||
Insmed, Inc.(a)(b) | 35,940 | 907,485 | ||||||
Intellia Therapeutics, Inc.(a)(b) | 22,987 | 726,849 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Intercept Pharmaceuticals, Inc.(a) | 8,041 | $ | 149,080 | |||||
Ionis Pharmaceuticals, Inc.(a)(b) | 37,922 | 1,720,142 | ||||||
Iovance Biotherapeutics, Inc.(a)(b) | 54,042 | 245,891 | ||||||
Ironwood Pharmaceuticals, Inc., Class A(a) | 39,883 | 384,073 | ||||||
iTeos Therapeutics, Inc.(a) | 6,529 | 71,493 | ||||||
Janux Therapeutics, Inc.(a) | 5,768 | 58,141 | ||||||
KalVista Pharmaceuticals, Inc.(a)(b) | 6,414 | 61,767 | ||||||
Karuna Therapeutics, Inc.(a) | 9,319 | 1,575,750 | ||||||
Karyopharm Therapeutics, Inc.(a)(b) | 22,222 | 29,778 | ||||||
Keros Therapeutics, Inc.(a)(b) | 6,871 | 219,048 | ||||||
Kezar Life Sciences, Inc.(a)(b) | 13,974 | 16,629 | ||||||
Kiniksa Pharmaceuticals Ltd., Class A(a) | 11,382 | 197,705 | ||||||
Kodiak Sciences, Inc.(a) | 13,944 | 25,099 | ||||||
Krystal Biotech, Inc.(a)(b) | 5,802 | 673,032 | ||||||
Kura Oncology, Inc.(a) | 16,485 | 150,343 | ||||||
Kymera Therapeutics, Inc.(a)(b) | 9,657 | 134,232 | ||||||
Lexicon Pharmaceuticals, Inc.(a)(b) | 34,563 | 37,674 | ||||||
Lyell Immunopharma, Inc.(a)(b) | 40,426 | 59,426 | ||||||
MacroGenics, Inc.(a) | 16,138 | 75,203 | ||||||
Madrigal Pharmaceuticals, Inc.(a)(b) | 3,802 | 555,244 | ||||||
MannKind Corp.(a) | 59,320 | 244,992 | ||||||
MeiraGTx Holdings PLC(a) | 16,941 | 83,180 | ||||||
Mersana Therapeutics, Inc.(a) | 22,012 | 27,955 | ||||||
MiMedx Group, Inc.(a) | 33,014 | 240,672 | ||||||
Mineralys Therapeutics, Inc.(a)(b) | 6,143 | 58,420 | ||||||
Mirati Therapeutics, Inc.(a)(b) | 10,764 | 468,880 | ||||||
Mirum Pharmaceuticals, Inc.(a)(b) | 5,929 | 187,356 | ||||||
Moderna, Inc.(a)(b) | 87,306 | 9,017,837 | ||||||
Monte Rosa Therapeutics, Inc.(a)(b) | 14,004 | 67,079 | ||||||
Morphic Holding, Inc.(a)(b) | 7,905 | 181,104 | ||||||
Myriad Genetics, Inc.(a) | 22,476 | 360,515 | ||||||
Natera, Inc.(a) | 27,342 | 1,209,884 | ||||||
Neurocrine Biosciences, Inc.(a) | 24,970 | 2,809,125 | ||||||
Nkarta, Inc.(a) | 8,613 | 11,972 | ||||||
Novavax, Inc.(a)(b) | 19,334 | 139,978 | ||||||
Nurix Therapeutics, Inc.(a) | 10,456 | 82,184 | ||||||
Nuvalent, Inc., Class A(a)(b) | 5,919 | 272,096 | ||||||
Olema Pharmaceuticals, Inc.(a) | 11,642 | 143,779 | ||||||
Organogenesis Holdings, Inc., Class A(a) | 30,656 | 97,486 | ||||||
ORIC Pharmaceuticals, Inc.(a) | 17,005 | 102,880 | ||||||
Outlook Therapeutics, Inc.(a)(b) | 63,546 | 14,044 | ||||||
PepGen, Inc.(a) | 7,319 | 37,181 | ||||||
PMV Pharmaceuticals, Inc.(a)(b) | 8,204 | 50,373 | ||||||
Point Biopharma Global, Inc.(a) | 25,951 | 173,093 | ||||||
Precigen, Inc.(a)(b) | 59,785 | 84,895 | ||||||
Prime Medicine, Inc.(a)(b) | 10,276 | 98,033 | ||||||
ProKidney Corp., Class A(a)(b) | 16,028 | 73,408 | ||||||
Protagonist Therapeutics, Inc.(a) | 15,643 | 260,925 | ||||||
Prothena Corp. PLC(a) | 10,632 | 512,994 | ||||||
PTC Therapeutics, Inc.(a) | 19,590 | 439,012 | ||||||
RAPT Therapeutics, Inc.(a)(b) | 5,392 | 89,615 | ||||||
Recursion Pharmaceuticals, Inc., Class A(a)(b) | 31,554 | 241,388 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 27,187 | 22,373,814 | ||||||
REGENXBIO, Inc.(a) | 9,164 | 150,839 | ||||||
Relay Therapeutics, Inc.(a) | 19,745 | 166,055 | ||||||
Replimune Group, Inc.(a)(b) | 10,181 | 174,197 | ||||||
REVOLUTION Medicines, Inc.(a) | 27,075 | 749,436 | ||||||
Rhythm Pharmaceuticals, Inc.(a)(b) | 13,345 | 305,934 | ||||||
Rigel Pharmaceuticals, Inc.(a) | 63,014 | 68,055 | ||||||
Rocket Pharmaceuticals, Inc.(a)(b) | 13,954 | 285,918 | ||||||
Roivant Sciences Ltd.(a)(b) | 91,561 | 1,069,433 | ||||||
Sage Therapeutics, Inc.(a)(b) | 13,379 | 275,340 |
10 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Sana Biotechnology, Inc.(a)(b) | 22,316 | $ | 86,363 | |||||
Sangamo Therapeutics, Inc.(a)(b) | 33,336 | 19,995 | ||||||
Sarepta Therapeutics, Inc.(a) | 23,444 | 2,841,882 | ||||||
Savara, Inc.(a) | 41,456 | 156,704 | ||||||
Scholar Rock Holding Corp.(a)(b) | 12,282 | 87,202 | ||||||
Seagen, Inc.(a) | 36,748 | 7,796,088 | ||||||
Seres Therapeutics, Inc.(a)(b) | 17,998 | 42,835 | ||||||
SpringWorks Therapeutics, Inc.(a) | 15,137 | 349,967 | ||||||
Stoke Therapeutics, Inc.(a) | 7,669 | 30,216 | ||||||
Summit Therapeutics, Inc.(a)(b) | 39,820 | 74,463 | ||||||
Sutro Biopharma, Inc.(a) | 22,212 | 77,076 | ||||||
Syndax Pharmaceuticals, Inc.(a) | 19,397 | 281,644 | ||||||
Tango Therapeutics, Inc.(a) | 12,785 | 143,959 | ||||||
Tenaya Therapeutics, Inc.(a) | 15,606 | 39,795 | ||||||
TG Therapeutics, Inc.(a)(b) | 35,293 | 295,050 | ||||||
Travere Therapeutics, Inc.(a) | 16,660 | 148,940 | ||||||
Twist Bioscience Corp.(a)(b) | 14,909 | 302,056 | ||||||
Tyra Biosciences, Inc.(a)(b) | 6,424 | 88,459 | ||||||
Ultragenyx Pharmaceutical, Inc.(a) | 18,929 | 674,819 | ||||||
United Therapeutics Corp.(a) | 11,778 | 2,660,297 | ||||||
UroGen Pharma Ltd.(a) | 9,341 | 130,867 | ||||||
Vanda Pharmaceuticals, Inc.(a)(b) | 14,743 | 63,690 | ||||||
Vaxcyte, Inc.(a)(b) | 23,882 | 1,217,504 | ||||||
Vera Therapeutics, Inc., Class A(a)(b) | 7,474 | 102,469 | ||||||
Veracyte, Inc.(a) | 17,206 | 384,210 | ||||||
Vericel Corp.(a) | 11,469 | 384,441 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 67,688 | 23,537,825 | ||||||
Verve Therapeutics, Inc.(a)(b) | 12,299 | 163,085 | ||||||
Viking Therapeutics, Inc.(a)(b) | 24,977 | 276,495 | ||||||
Vir Biotechnology, Inc.(a) | 19,866 | 186,144 | ||||||
Viridian Therapeutics, Inc.(a) | 10,300 | 158,002 | ||||||
Voyager Therapeutics, Inc.(a) | 8,853 | 68,611 | ||||||
X4 Pharmaceuticals, Inc.(a) | 54,582 | 59,494 | ||||||
Xencor, Inc.(a) | 14,770 | 297,616 | ||||||
Y-mAbs Therapeutics, Inc.(a) | 9,017 | 49,143 | ||||||
Zentalis Pharmaceuticals, Inc.(a)(b) | 13,881 | 278,453 | ||||||
Zymeworks, Inc.(a)(b) | 13,866 | 87,910 | ||||||
|
| |||||||
283,190,262 | ||||||||
Broadline Retail — 2.9% | ||||||||
Amazon.com, Inc.(a) | 2,367,300 | 300,931,176 | ||||||
Big Lots, Inc.(b) | 8,851 | 45,229 | ||||||
ContextLogic, Inc., Class A(a)(b) | 5,580 | 24,608 | ||||||
Coupang, Inc., Class A(a) | 287,265 | 4,883,505 | ||||||
Dillard’s, Inc., Class A | 1,039 | 343,712 | ||||||
eBay, Inc. | 140,136 | 6,178,596 | ||||||
Etsy, Inc.(a) | 32,922 | 2,126,103 | ||||||
Kohl’s Corp. | 28,981 | 607,442 | ||||||
Macy’s, Inc. | 72,920 | 846,601 | ||||||
Nordstrom, Inc. | 28,712 | 428,957 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.(a) | 16,792 | 1,296,006 | ||||||
Savers Value Village, Inc.(a) | 6,767 | 126,340 | ||||||
|
| |||||||
317,838,275 | ||||||||
Building Products — 0.7% | ||||||||
A O Smith Corp. | 32,979 | 2,180,901 | ||||||
AAON, Inc. | 17,355 | 986,979 | ||||||
Advanced Drainage Systems, Inc. | 17,961 | 2,044,501 | ||||||
Allegion PLC | 22,823 | 2,378,157 | ||||||
American Woodmark Corp.(a) | 4,711 | 356,199 | ||||||
Apogee Enterprises, Inc. | 6,885 | 324,146 | ||||||
Armstrong World Industries, Inc. | 11,986 | 862,992 | ||||||
AZEK Co., Inc. (The), Class A(a) | 32,671 | 971,635 | ||||||
AZZ, Inc. | 6,661 | 303,608 |
Security | Shares | Value | ||||||
Building Products (continued) | ||||||||
Builders FirstSource, Inc.(a)(b) | 33,377 | $ | 4,155,103 | |||||
Carlisle Cos., Inc. | 12,918 | 3,349,121 | ||||||
Carrier Global Corp. | 219,170 | 12,098,184 | ||||||
CSW Industrials, Inc. | 3,654 | 640,327 | ||||||
Fortune Brands Innovations, Inc. | 33,960 | 2,110,954 | ||||||
Gibraltar Industries, Inc.(a) | 8,039 | 542,713 | ||||||
Griffon Corp. | 10,979 | 435,537 | ||||||
Hayward Holdings, Inc.(a)(b) | 37,374 | 526,973 | ||||||
Insteel Industries, Inc. | 4,236 | 137,501 | ||||||
Janus International Group, Inc.(a) | 21,993 | 235,325 | ||||||
JELD-WEN Holding, Inc.(a) | 21,516 | 287,454 | ||||||
Johnson Controls International PLC | 181,230 | 9,643,248 | ||||||
Lennox International, Inc. | 8,351 | 3,126,948 | ||||||
Masco Corp. | 58,589 | 3,131,582 | ||||||
Masonite International Corp.(a) | 6,124 | 570,879 | ||||||
Masterbrand, Inc.(a) | 33,770 | 410,305 | ||||||
Owens Corning | 23,535 | 3,210,409 | ||||||
PGT Innovations, Inc.(a) | 14,662 | 406,870 | ||||||
Quanex Building Products Corp. | 8,953 | 252,206 | ||||||
Resideo Technologies, Inc.(a) | 37,405 | 590,999 | ||||||
Simpson Manufacturing Co., Inc. | 11,474 | 1,718,920 | ||||||
Trane Technologies PLC | 59,716 | 12,116,974 | ||||||
Trex Co., Inc.(a)(b) | 28,181 | 1,736,795 | ||||||
UFP Industries, Inc. | 16,139 | 1,652,634 | ||||||
Zurn Elkay Water Solutions Corp. | 38,468 | 1,077,873 | ||||||
|
| |||||||
74,574,952 | ||||||||
Capital Markets — 2.9% | ||||||||
Affiliated Managers Group, Inc. | 9,893 | 1,289,454 | ||||||
Ameriprise Financial, Inc. | 27,730 | 9,142,026 | ||||||
Ares Management Corp., Class A | 42,013 | 4,321,877 | ||||||
Artisan Partners Asset Management, Inc., Class A | 14,769 | 552,656 | ||||||
AssetMark Financial Holdings, Inc.(a) | 6,947 | 174,231 | ||||||
Avantax, Inc.(a) | 8,666 | 221,676 | ||||||
B Riley Financial, Inc. | 5,710 | 234,053 | ||||||
Bank of New York Mellon Corp. (The) | 204,631 | 8,727,512 | ||||||
BGC Group, Inc., Class A | 86,272 | 455,516 | ||||||
BlackRock, Inc.(c) | 39,005 | 25,216,342 | ||||||
Blackstone, Inc., Class A, NVS | 186,931 | 20,027,787 | ||||||
Blue Owl Capital, Inc., Class A | 117,108 | 1,517,720 | ||||||
Brightsphere Investment Group, Inc. | 8,438 | 163,613 | ||||||
Carlyle Group, Inc. (The) | 56,582 | 1,706,513 | ||||||
Cboe Global Markets, Inc. | 27,500 | 4,295,775 | ||||||
Charles Schwab Corp. (The) | 388,742 | 21,341,936 | ||||||
CME Group, Inc., Class A | 94,244 | 18,869,534 | ||||||
Cohen & Steers, Inc. | 6,018 | 377,268 | ||||||
Coinbase Global, Inc., Class A(a)(b) | 43,904 | 3,296,312 | ||||||
Diamond Hill Investment Group, Inc., Class A | 675 | 113,785 | ||||||
Donnelley Financial Solutions, Inc.(a) | 6,375 | 358,785 | ||||||
Evercore, Inc., Class A | 9,403 | 1,296,486 | ||||||
FactSet Research Systems, Inc. | 9,942 | 4,347,239 | ||||||
Forge Global Holdings, Inc.(a) | 46,044 | 93,469 | ||||||
Franklin Resources, Inc. | 74,653 | 1,834,971 | ||||||
GCM Grosvenor, Inc., Class A | 12,875 | 99,910 | ||||||
Goldman Sachs Group, Inc. (The) | 84,699 | 27,406,055 | ||||||
Hamilton Lane, Inc., Class A | 9,222 | 834,038 | ||||||
Houlihan Lokey, Inc., Class A | 13,630 | 1,460,046 | ||||||
Interactive Brokers Group, Inc., Class A | 26,153 | 2,263,804 | ||||||
Intercontinental Exchange, Inc. | 149,164 | 16,411,023 | ||||||
Invesco Ltd. | 98,956 | 1,436,841 | ||||||
Janus Henderson Group PLC | 38,103 | 983,820 | ||||||
Jefferies Financial Group, Inc. | 50,095 | 1,834,980 |
SCHEDULES OF INVESTMENTS | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Capital Markets (continued) | ||||||||
KKR & Co., Inc., Class A | 169,370 | $ | 10,433,192 | |||||
Lazard Ltd., Class A | 28,679 | 889,336 | ||||||
LPL Financial Holdings, Inc. | 20,251 | 4,812,650 | ||||||
MarketAxess Holdings, Inc. | 9,877 | 2,110,122 | ||||||
Moelis & Co., Class A | 16,225 | 732,234 | ||||||
Moody’s Corp. | 41,626 | 13,160,892 | ||||||
Morgan Stanley | 315,457 | 25,763,373 | ||||||
Morningstar, Inc. | 6,710 | 1,571,750 | ||||||
MSCI, Inc., Class A | 20,167 | 10,347,284 | ||||||
Nasdaq, Inc. | 90,363 | 4,390,738 | ||||||
Northern Trust Corp. | 53,016 | 3,683,552 | ||||||
Open Lending Corp.(a) | 26,570 | 194,492 | ||||||
P10, Inc., Class A | 9,687 | 112,854 | ||||||
Patria Investments Ltd., Class A | 14,131 | 206,030 | ||||||
Perella Weinberg Partners, Class A | 8,223 | 83,710 | ||||||
Piper Sandler Cos. | 4,909 | 713,327 | ||||||
PJT Partners, Inc., Class A | 6,254 | 496,818 | ||||||
Raymond James Financial, Inc. | 49,870 | 5,008,444 | ||||||
Robinhood Markets, Inc., Class A(a)(b) | 173,993 | 1,706,871 | ||||||
S&P Global, Inc. | 84,462 | 30,863,259 | ||||||
Sculptor Capital Management, Inc. | 10,605 | 123,018 | ||||||
SEI Investments Co. | 26,569 | 1,600,251 | ||||||
State Street Corp. | 83,859 | 5,615,199 | ||||||
StepStone Group, Inc., Class A | 14,905 | 470,700 | ||||||
Stifel Financial Corp. | 27,452 | 1,686,651 | ||||||
StoneX Group, Inc.(a) | 5,231 | 506,989 | ||||||
T Rowe Price Group, Inc. | 57,521 | 6,032,227 | ||||||
TPG, Inc., Class A | 16,815 | 506,468 | ||||||
Tradeweb Markets, Inc., Class A | 30,080 | 2,412,416 | ||||||
Victory Capital Holdings, Inc., Class A | 7,822 | 260,786 | ||||||
Virtu Financial, Inc., Class A | 27,444 | 473,958 | ||||||
Virtus Investment Partners, Inc. | 1,729 | 349,241 | ||||||
WisdomTree, Inc. | 39,606 | 277,242 | ||||||
XP, Inc., Class A | 87,058 | 2,006,687 | ||||||
|
| |||||||
322,309,814 | ||||||||
Chemicals — 1.7% | ||||||||
AdvanSix, Inc. | 7,778 | 241,740 | ||||||
Air Products & Chemicals, Inc. | 58,482 | 16,573,799 | ||||||
Albemarle Corp. | 30,577 | 5,199,313 | ||||||
American Vanguard Corp. | 8,712 | 95,222 | ||||||
Ashland, Inc. | 12,147 | 992,167 | ||||||
Aspen Aerogels, Inc.(a)(b) | 10,365 | 89,139 | ||||||
Avient Corp. | 22,760 | 803,883 | ||||||
Axalta Coating Systems Ltd.(a) | 55,987 | 1,506,050 | ||||||
Balchem Corp. | 8,060 | 999,762 | ||||||
Cabot Corp. | 13,944 | 965,901 | ||||||
Celanese Corp., Class A | 25,906 | 3,251,721 | ||||||
CF Industries Holdings, Inc. | 51,693 | 4,432,158 | ||||||
Chase Corp. | 2,253 | 286,649 | ||||||
Chemours Co. (The) | 37,814 | 1,060,683 | ||||||
Corteva, Inc. | 187,836 | 9,609,690 | ||||||
Danimer Scientific, Inc., Class A(a)(b) | 27,151 | 56,203 | ||||||
Dow, Inc. | 186,665 | 9,624,447 | ||||||
DuPont de Nemours, Inc. | 120,925 | 9,019,796 | ||||||
Eastman Chemical Co. | 31,431 | 2,411,386 | ||||||
Ecolab, Inc. | 65,524 | 11,099,766 | ||||||
Ecovyst, Inc.(a)(b) | 25,350 | 249,444 | ||||||
Element Solutions, Inc. | 58,232 | 1,141,930 | ||||||
FMC Corp. | 32,638 | 2,185,767 | ||||||
Ginkgo Bioworks Holdings, Inc., Class A(a)(b) | 402,343 | 728,241 | ||||||
Hawkins, Inc. | 4,426 | 260,470 | ||||||
HB Fuller Co. | 13,364 | 916,904 |
Security | Shares | Value | ||||||
Chemicals (continued) | ||||||||
Huntsman Corp. | 44,552 | $ | 1,087,069 | |||||
Ingevity Corp.(a)(b) | 9,610 | 457,532 | ||||||
Innospec, Inc. | 6,437 | 657,861 | ||||||
International Flavors & Fragrances, Inc. | 67,590 | 4,607,610 | ||||||
Intrepid Potash, Inc.(a)(b) | 2,861 | 71,983 | ||||||
Koppers Holdings, Inc. | 5,140 | 203,287 | ||||||
Linde PLC | 128,898 | 47,995,170 | ||||||
Livent Corp.(a)(b) | 47,716 | 878,452 | ||||||
LSB Industries, Inc.(a) | 19,260 | 197,030 | ||||||
LyondellBasell Industries NV, Class A | 67,480 | 6,390,356 | ||||||
Mativ Holdings, Inc. | 13,772 | 196,389 | ||||||
Minerals Technologies, Inc. | 9,595 | 525,422 | ||||||
Mosaic Co. (The) | 86,737 | 3,087,837 | ||||||
NewMarket Corp. | 1,748 | 795,410 | ||||||
Olin Corp. | 33,038 | 1,651,239 | ||||||
Origin Materials, Inc., Class A(a)(b) | 31,686 | 40,558 | ||||||
Orion SA | 15,796 | 336,139 | ||||||
Perimeter Solutions SA(a)(b) | 38,054 | 172,765 | ||||||
PPG Industries, Inc. | 61,815 | 8,023,587 | ||||||
PureCycle Technologies, Inc.(a)(b) | 27,421 | 153,832 | ||||||
Quaker Chemical Corp.(b) | 3,506 | 560,960 | ||||||
Rayonier Advanced Materials, Inc.(a) | 16,034 | 56,760 | ||||||
RPM International, Inc. | 33,082 | 3,136,504 | ||||||
Scotts Miracle-Gro Co. (The) | 10,600 | 547,808 | ||||||
Sensient Technologies Corp. | 11,278 | 659,538 | ||||||
Sherwin-Williams Co. (The) | 62,386 | 15,911,549 | ||||||
Stepan Co. | 6,030 | 452,069 | ||||||
Trinseo PLC | 9,689 | 79,159 | ||||||
Tronox Holdings PLC | 26,647 | 358,136 | ||||||
Westlake Corp.(b) | 8,939 | 1,114,425 | ||||||
|
| |||||||
184,208,667 | ||||||||
Commercial Services & Supplies — 0.6% | ||||||||
ABM Industries, Inc. | 17,333 | 693,493 | ||||||
ACCO Brands Corp. | 27,455 | 157,592 | ||||||
ACV Auctions, Inc., Class A(a)(b) | 33,169 | 503,505 | ||||||
Aris Water Solutions, Inc., Class A | 6,420 | 64,072 | ||||||
BrightView Holdings, Inc.(a) | 13,771 | 106,725 | ||||||
Brink’s Co. (The) | 11,520 | 836,813 | ||||||
Casella Waste Systems, Inc., Class A(a) | 14,420 | 1,100,246 | ||||||
CECO Environmental Corp.(a)(b) | 8,351 | 133,365 | ||||||
Cimpress PLC(a) | 4,399 | 307,974 | ||||||
Cintas Corp. | 22,790 | 10,962,218 | ||||||
Clean Harbors, Inc.(a) | 13,329 | 2,230,741 | ||||||
Copart, Inc.(a) | 225,837 | 9,731,316 | ||||||
CoreCivic, Inc.(a) | 30,206 | 339,818 | ||||||
Deluxe Corp. | 10,766 | 203,370 | ||||||
Driven Brands Holdings, Inc.(a) | 16,773 | 211,172 | ||||||
Ennis, Inc. | 6,439 | 136,636 | ||||||
Enviri Corp.(a) | 22,573 | 162,977 | ||||||
GEO Group, Inc. (The)(a) | 32,760 | 267,977 | ||||||
Healthcare Services Group, Inc. | 19,997 | 208,569 | ||||||
Heritage-Crystal Clean, Inc.(a) | 5,174 | 234,641 | ||||||
HNI Corp. | 12,765 | 442,052 | ||||||
Interface, Inc., Class A | 14,261 | 139,900 | ||||||
Li-Cycle Holdings Corp.(a)(b) | 35,749 | 126,909 | ||||||
Liquidity Services, Inc.(a) | 6,677 | 117,649 | ||||||
Matthews International Corp., Class A | 7,825 | 304,471 | ||||||
MillerKnoll, Inc. | 20,794 | 508,413 | ||||||
Montrose Environmental Group, Inc.(a) | 5,938 | 173,746 | ||||||
MSA Safety, Inc. | 9,517 | 1,500,355 | ||||||
OPENLANE, Inc.(a) | 28,177 | 420,401 | ||||||
RB Global, Inc.(b) | 47,610 | 2,975,625 |
12 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Commercial Services & Supplies (continued) | ||||||||
Republic Services, Inc. | 54,450 | $ | 7,759,669 | |||||
Rollins, Inc. | 67,261 | 2,510,853 | ||||||
SP Plus Corp.(a) | 5,881 | 212,304 | ||||||
Steelcase, Inc., Class A | 24,946 | 278,647 | ||||||
Stericycle, Inc.(a) | 23,773 | 1,062,891 | ||||||
Tetra Tech, Inc. | 14,062 | 2,137,846 | ||||||
UniFirst Corp. | 4,061 | 661,984 | ||||||
Viad Corp.(a) | 4,972 | 130,266 | ||||||
VSE Corp. | 2,937 | 148,142 | ||||||
Waste Management, Inc. | 106,711 | 16,267,025 | ||||||
|
| |||||||
66,472,368 | ||||||||
Communications Equipment — 0.9% | ||||||||
ADTRAN Holdings, Inc. | 18,298 | 150,593 | ||||||
Arista Networks, Inc.(a) | 65,768 | 12,096,708 | ||||||
Aviat Networks, Inc.(a) | 3,496 | 109,075 | ||||||
Calix, Inc.(a) | 14,358 | 658,171 | ||||||
Cambium Networks Corp.(a) | 4,476 | 32,809 | ||||||
Ciena Corp.(a) | 39,556 | 1,869,417 | ||||||
Cisco Systems, Inc. | 1,077,382 | 57,920,056 | ||||||
Clearfield, Inc.(a) | 3,363 | 96,384 | ||||||
CommScope Holding Co., Inc.(a) | 51,335 | 172,486 | ||||||
Comtech Telecommunications Corp. | 7,951 | 69,571 | ||||||
Digi International, Inc.(a) | 8,552 | 230,904 | ||||||
Extreme Networks, Inc.(a) | 34,721 | 840,596 | ||||||
F5, Inc.(a) | 15,552 | 2,506,049 | ||||||
Harmonic, Inc.(a) | 31,743 | 305,685 | ||||||
Infinera Corp.(a)(b) | 52,413 | 219,086 | ||||||
Juniper Networks, Inc. | 83,089 | 2,309,043 | ||||||
Lumentum Holdings, Inc.(a)(b) | 18,796 | 849,203 | ||||||
Motorola Solutions, Inc. | 43,315 | 11,792,076 | ||||||
NETGEAR, Inc.(a) | 8,648 | 108,878 | ||||||
NetScout Systems, Inc.(a) | 16,370 | 458,687 | ||||||
Ribbon Communications, Inc.(a)(b) | 23,169 | 62,093 | ||||||
Ubiquiti, Inc. | 1,048 | 152,274 | ||||||
Viasat, Inc.(a)(b) | 30,790 | 568,384 | ||||||
Viavi Solutions, Inc.(a) | 63,148 | 577,173 | ||||||
|
| |||||||
94,155,401 | ||||||||
Construction & Engineering — 0.3% | ||||||||
AECOM | 33,853 | 2,811,153 | ||||||
Ameresco, Inc., Class A(a)(b) | 7,897 | 304,508 | ||||||
API Group Corp.(a) | 55,635 | 1,442,616 | ||||||
Arcosa, Inc. | 12,647 | 909,319 | ||||||
Argan, Inc. | 3,801 | 173,022 | ||||||
Bowman Consulting Group Ltd.(a) | 3,291 | 92,247 | ||||||
Comfort Systems U.S.A., Inc. | 8,968 | 1,528,237 | ||||||
Construction Partners, Inc., Class A(a) | 8,770 | 320,631 | ||||||
Dycom Industries, Inc.(a)(b) | 7,081 | 630,209 | ||||||
EMCOR Group, Inc. | 12,373 | 2,603,155 | ||||||
Eneti, Inc. | 9,412 | 94,873 | ||||||
Fluor Corp.(a)(b) | 38,559 | 1,415,115 | ||||||
Granite Construction, Inc. | 13,218 | 502,548 | ||||||
Great Lakes Dredge & Dock Corp.(a) | 14,548 | 115,948 | ||||||
IES Holdings, Inc.(a) | 2,654 | 174,819 | ||||||
Limbach Holdings, Inc.(a)(b) | 3,596 | 114,101 | ||||||
MasTec, Inc.(a) | 16,577 | 1,193,047 | ||||||
MDU Resources Group, Inc. | 51,553 | 1,009,408 | ||||||
MYR Group, Inc.(a) | 4,034 | 543,622 | ||||||
Northwest Pipe Co.(a) | 3,960 | 119,473 | ||||||
Primoris Services Corp. | 15,434 | 505,155 | ||||||
Quanta Services, Inc. | 37,990 | 7,106,789 | ||||||
Sterling Infrastructure, Inc.(a) | 8,156 | 599,303 | ||||||
Tutor Perini Corp.(a) | 13,100 | 102,573 |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
Valmont Industries, Inc. | 5,447 | $ | 1,308,424 | |||||
WillScot Mobile Mini Holdings Corp.(a) | 51,546 | 2,143,798 | ||||||
|
| |||||||
27,864,093 | ||||||||
Construction Materials — 0.2% | ||||||||
Eagle Materials, Inc. | 9,431 | 1,570,450 | ||||||
Knife River Corp.(a) | 15,106 | 737,626 | ||||||
Martin Marietta Materials, Inc. | 16,186 | 6,644,030 | ||||||
Summit Materials, Inc., Class A(a)(b) | 32,065 | 998,504 | ||||||
United States Lime & Minerals, Inc. | 672 | 135,072 | ||||||
Vulcan Materials Co. | 34,962 | 7,063,023 | ||||||
|
| |||||||
17,148,705 | ||||||||
Consumer Finance — 0.5% | ||||||||
Ally Financial, Inc. | 71,355 | 1,903,751 | ||||||
American Express Co. | 155,227 | 23,158,316 | ||||||
Bread Financial Holdings, Inc. | 12,814 | 438,239 | ||||||
Capital One Financial Corp. | 99,176 | 9,625,031 | ||||||
Credit Acceptance Corp.(a)(b) | 1,803 | 829,596 | ||||||
Discover Financial Services | 65,193 | 5,647,670 | ||||||
Encore Capital Group, Inc.(a)(b) | 6,439 | 307,527 | ||||||
Enova International, Inc.(a) | 7,574 | 385,289 | ||||||
FirstCash Holdings, Inc. | 9,635 | 967,161 | ||||||
Green Dot Corp., Class A(a) | 14,236 | 198,308 | ||||||
LendingClub Corp.(a) | 25,429 | 155,117 | ||||||
LendingTree, Inc.(a) | 3,828 | 59,334 | ||||||
Navient Corp. | 25,041 | 431,206 | ||||||
Nelnet, Inc., Class A | 3,196 | 285,467 | ||||||
NerdWallet, Inc., Class A(a)(b) | 5,845 | 51,962 | ||||||
OneMain Holdings, Inc. | 29,170 | 1,169,425 | ||||||
PRA Group, Inc.(a) | 9,443 | 181,400 | ||||||
PROG Holdings, Inc.(a) | 14,497 | 481,445 | ||||||
Regional Management Corp. | 3,341 | 92,479 | ||||||
SLM Corp. | 64,033 | 872,130 | ||||||
SoFi Technologies, Inc.(a)(b) | 240,414 | 1,920,908 | ||||||
Synchrony Financial | 109,718 | 3,354,079 | ||||||
Upstart Holdings, Inc.(a)(b) | 19,948 | 569,316 | ||||||
World Acceptance Corp.(a) | 974 | 123,756 | ||||||
|
| |||||||
53,208,912 | ||||||||
Consumer Staples Distribution & Retail — 1.7% | ||||||||
Albertsons Cos., Inc., Class A | 109,178 | 2,483,800 | ||||||
Andersons, Inc. (The) | 9,715 | 500,420 | ||||||
BJ’s Wholesale Club Holdings, Inc.(a) | 34,631 | 2,471,614 | ||||||
Casey’s General Stores, Inc. | 9,869 | 2,679,631 | ||||||
Chefs’ Warehouse, Inc. (The)(a) | 7,498 | 158,808 | ||||||
Costco Wholesale Corp. | 116,412 | 65,768,124 | ||||||
Dollar General Corp. | 57,452 | 6,078,422 | ||||||
Dollar Tree, Inc.(a) | 55,304 | 5,887,111 | ||||||
Grocery Outlet Holding Corp.(a) | 25,888 | 746,869 | ||||||
Ingles Markets, Inc., Class A | 4,177 | 314,653 | ||||||
Kroger Co. (The) | 170,759 | 7,641,465 | ||||||
Performance Food Group Co.(a) | 39,412 | 2,319,790 | ||||||
PriceSmart, Inc. | 7,274 | 541,404 | ||||||
SpartanNash Co. | 8,905 | 195,910 | ||||||
Sprouts Farmers Market, Inc.(a) | 27,419 | 1,173,533 | ||||||
Sysco Corp. | 133,026 | 8,786,367 | ||||||
Target Corp. | 120,620 | 13,336,953 | ||||||
U.S. Foods Holding Corp.(a) | 59,453 | 2,360,284 | ||||||
United Natural Foods, Inc.(a)(b) | 13,937 | 197,069 | ||||||
Walgreens Boots Alliance, Inc. | 189,158 | 4,206,874 | ||||||
Walmart, Inc. | 375,045 | 59,980,947 | ||||||
Weis Markets, Inc. | 4,686 | 295,218 | ||||||
|
| |||||||
188,125,266 |
SCHEDULES OF INVESTMENTS | 13 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Containers & Packaging — 0.3% | ||||||||
Amcor PLC | 383,932 | $ | 3,516,817 | |||||
AptarGroup, Inc. | 17,163 | 2,146,062 | ||||||
Ardagh Group SA, Class A(a) | 4,919 | 26,833 | ||||||
Ardagh Metal Packaging SA | 41,863 | 131,031 | ||||||
Avery Dennison Corp. | 21,386 | 3,906,581 | ||||||
Ball Corp. | 81,693 | 4,066,678 | ||||||
Berry Global Group, Inc. | 32,528 | 2,013,808 | ||||||
Crown Holdings, Inc. | 27,805 | 2,460,186 | ||||||
Graphic Packaging Holding Co. | 81,907 | 1,824,888 | ||||||
Greif, Inc., Class A, NVS | 6,247 | 417,362 | ||||||
Greif, Inc., Class B | 1,975 | 131,456 | ||||||
International Paper Co. | 90,784 | 3,220,108 | ||||||
Myers Industries, Inc. | 9,592 | 171,985 | ||||||
O-I Glass, Inc.(a) | 43,121 | 721,414 | ||||||
Packaging Corp. of America | 22,960 | 3,525,508 | ||||||
Pactiv Evergreen, Inc. | 10,455 | 84,999 | ||||||
Sealed Air Corp. | 37,823 | 1,242,864 | ||||||
Silgan Holdings, Inc. | 21,790 | 939,367 | ||||||
Sonoco Products Co. | 25,757 | 1,399,893 | ||||||
TriMas Corp. | 9,741 | 241,187 | ||||||
Westrock Co. | 66,727 | 2,388,827 | ||||||
|
| |||||||
34,577,854 | ||||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 36,770 | 5,308,853 | ||||||
LKQ Corp. | 69,832 | 3,457,382 | ||||||
Pool Corp.(b) | 10,122 | 3,604,444 | ||||||
|
| |||||||
12,370,679 | ||||||||
Diversified Consumer Services — 0.1% | ||||||||
2U, Inc.(a)(b) | 18,323 | 45,258 | ||||||
ADT, Inc. | 54,459 | 326,754 | ||||||
Adtalem Global Education, Inc.(a) | 12,597 | 539,781 | ||||||
Bright Horizons Family Solutions, Inc.(a)(b) | 14,809 | 1,206,341 | ||||||
Carriage Services, Inc. | 3,866 | 109,215 | ||||||
Chegg, Inc.(a) | 31,712 | 282,871 | ||||||
Coursera, Inc.(a)(b) | 34,426 | 643,422 | ||||||
Duolingo, Inc., Class A(a)(b) | 7,459 | 1,237,224 | ||||||
European Wax Center, Inc., Class A(a) | 6,745 | 109,269 | ||||||
Frontdoor, Inc.(a) | 22,570 | 690,416 | ||||||
Graham Holdings Co., Class B | 1,020 | 594,660 | ||||||
Grand Canyon Education, Inc.(a) | 7,961 | 930,482 | ||||||
H&R Block, Inc. | 41,025 | 1,766,536 | ||||||
Laureate Education, Inc., Class A | 34,916 | 492,316 | ||||||
Mister Car Wash, Inc.(a) | 19,983 | 110,106 | ||||||
OneSpaWorld Holdings Ltd.(a) | 13,845 | 155,341 | ||||||
Perdoceo Education Corp. | 19,949 | 341,128 | ||||||
Rover Group, Inc., Class A(a) | 32,368 | 202,624 | ||||||
Service Corp. International | 39,651 | 2,265,658 | ||||||
Strategic Education, Inc. | 5,838 | 439,309 | ||||||
Stride, Inc.(a) | 11,031 | 496,726 | ||||||
Udemy, Inc.(a) | 22,081 | 209,770 | ||||||
Universal Technical Institute, Inc.(a) | 13,647 | 114,362 | ||||||
WW International, Inc.(a)(b) | 16,189 | 179,212 | ||||||
|
| |||||||
13,488,781 | ||||||||
Diversified REITs — 0.1% | ||||||||
Alexander & Baldwin, Inc. | 19,990 | 334,433 | ||||||
American Assets Trust, Inc. | 12,265 | 238,554 | ||||||
Armada Hoffler Properties, Inc. | 14,650 | 150,016 | ||||||
Broadstone Net Lease, Inc. | 46,063 | 658,701 | ||||||
CTO Realty Growth, Inc. | 6,627 | 107,424 | ||||||
Empire State Realty Trust, Inc., Class A(b) | 38,250 | 307,530 | ||||||
Essential Properties Realty Trust, Inc. | 40,870 | 884,018 |
Security | Shares | Value | ||||||
Diversified REITs (continued) | ||||||||
Gladstone Commercial Corp. | 9,672 | $ | 117,611 | |||||
Global Net Lease, Inc. | 54,382 | 522,611 | ||||||
NexPoint Diversified Real Estate Trust | 9,773 | 85,123 | ||||||
NexPoint Diversified Real Estate Trust(a)(d) | 9,806 | 1,177 | ||||||
One Liberty Properties, Inc. | 4,562 | 86,085 | ||||||
Star Holdings(a) | 2,381 | 29,810 | ||||||
WP Carey, Inc. | 55,282 | 2,989,650 | ||||||
|
| |||||||
6,512,743 | ||||||||
Diversified Telecommunication Services — 0.6% | ||||||||
Anterix, Inc.(a) | 3,152 | 98,910 | ||||||
AST SpaceMobile, Inc., Class A(a)(b) | 17,789 | 67,598 | ||||||
AT&T Inc. | 1,881,121 | 28,254,437 | ||||||
ATN International, Inc. | 3,037 | 95,848 | ||||||
Bandwidth, Inc., Class A(a) | 8,420 | 94,893 | ||||||
Cogent Communications Holdings, Inc. | 11,414 | 706,527 | ||||||
Consolidated Communications Holdings, Inc.(a) | 20,532 | 70,219 | ||||||
EchoStar Corp., Class A(a)(b) | 9,579 | 160,448 | ||||||
Frontier Communications Parent, Inc.(a)(b) | 62,386 | 976,341 | ||||||
GCI Liberty, Inc. Escrow, Class A(a)(d) | 28,033 | — | ||||||
Globalstar, Inc.(a)(b) | 170,151 | 222,898 | ||||||
IDT Corp., Class B(a) | 5,191 | 114,462 | ||||||
Iridium Communications, Inc. | 33,293 | 1,514,499 | ||||||
Liberty Latin America Ltd., Class A(a) | 11,761 | 95,970 | ||||||
Liberty Latin America Ltd., Class C, NVS(a)(b) | 42,336 | 345,462 | ||||||
Lumen Technologies, Inc.(a) | 265,407 | 376,878 | ||||||
Ooma, Inc.(a) | 7,019 | 91,317 | ||||||
Verizon Communications, Inc. | 1,105,550 | 35,830,875 | ||||||
|
| |||||||
69,117,582 | ||||||||
Electric Utilities — 1.4% | ||||||||
ALLETE, Inc. | 14,834 | 783,235 | ||||||
Alliant Energy Corp. | 66,821 | 3,237,478 | ||||||
American Electric Power Co., Inc. | 135,115 | 10,163,350 | ||||||
Avangrid, Inc. | 19,090 | 575,945 | ||||||
Constellation Energy Corp. | 86,401 | 9,424,621 | ||||||
Duke Energy Corp. | 202,506 | 17,873,180 | ||||||
Edison International | 99,171 | 6,276,533 | ||||||
Entergy Corp. | 55,499 | 5,133,658 | ||||||
Evergy, Inc. | 58,920 | 2,987,244 | ||||||
Eversource Energy | 91,235 | 5,305,315 | ||||||
Exelon Corp. | 259,973 | 9,824,380 | ||||||
FirstEnergy Corp. | 143,143 | 4,892,628 | ||||||
Genie Energy Ltd., Class B | 8,154 | 120,108 | ||||||
Hawaiian Electric Industries, Inc. | 28,885 | 355,574 | ||||||
IDACORP, Inc. | 12,788 | 1,197,596 | ||||||
MGE Energy, Inc. | 9,394 | 643,583 | ||||||
NextEra Energy, Inc. | 531,904 | 30,472,780 | ||||||
NRG Energy, Inc. | 60,492 | 2,330,152 | ||||||
OGE Energy Corp. | 51,178 | 1,705,763 | ||||||
Otter Tail Corp. | 10,447 | 793,136 | ||||||
PG&E Corp.(a) | 526,392 | 8,490,703 | ||||||
Pinnacle West Capital Corp. | 30,308 | 2,233,093 | ||||||
PNM Resources, Inc. | 22,130 | 987,219 | ||||||
Portland General Electric Co. | 26,509 | 1,073,084 | ||||||
PPL Corp. | 192,632 | 4,538,410 | ||||||
Southern Co. (The) | 286,664 | 18,552,894 | ||||||
Xcel Energy, Inc. | 143,895 | 8,233,672 | ||||||
|
| |||||||
158,205,334 | ||||||||
Electrical Equipment — 0.8% | ||||||||
Acuity Brands, Inc. | 8,459 | 1,440,652 | ||||||
Allient, Inc. | 3,466 | 107,169 | ||||||
AMETEK, Inc. | 60,603 | 8,954,699 |
14 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electrical Equipment (continued) | ||||||||
Array Technologies, Inc.(a) | 40,734 | $ | 903,887 | |||||
Atkore, Inc.(a)(b) | 9,852 | 1,469,820 | ||||||
Babcock & Wilcox Enterprises, Inc.(a) | 17,081 | 71,911 | ||||||
Blink Charging Co.(a)(b) | 9,813 | 30,028 | ||||||
Bloom Energy Corp., Class A(a)(b) | 51,183 | 678,687 | ||||||
ChargePoint Holdings, Inc., Class A(a)(b) | 86,716 | 430,979 | ||||||
Eaton Corp. PLC | 104,488 | 22,285,201 | ||||||
Emerson Electric Co. | 149,854 | 14,471,401 | ||||||
Encore Wire Corp. | 4,353 | 794,248 | ||||||
Energy Vault Holdings, Inc.(a)(b) | 35,445 | 90,385 | ||||||
EnerSys | 11,361 | 1,075,546 | ||||||
Enovix Corp.(a)(b) | 37,799 | 474,377 | ||||||
Eos Energy Enterprises, Inc., Class A(a)(b) | 31,879 | 68,540 | ||||||
ESS Tech, Inc.(a)(b) | 31,728 | 59,649 | ||||||
Fluence Energy, Inc., Class A(a)(b) | 8,829 | 202,979 | ||||||
FuelCell Energy, Inc.(a)(b) | 99,507 | 127,369 | ||||||
Generac Holdings, Inc.(a) | 16,357 | 1,782,259 | ||||||
GrafTech International Ltd. | 56,446 | 216,188 | ||||||
Hubbell, Inc. | 13,905 | 4,357,966 | ||||||
LSI Industries, Inc. | 8,888 | 141,141 | ||||||
NEXTracker, Inc., Class A(a) | 11,321 | 454,651 | ||||||
NuScale Power Corp., Class A(a)(b) | 10,165 | 49,808 | ||||||
nVent Electric PLC | 43,688 | 2,315,027 | ||||||
Plug Power, Inc.(a)(b) | 134,519 | 1,022,344 | ||||||
Powell Industries, Inc. | 2,809 | 232,866 | ||||||
Preformed Line Products Co. | 870 | 141,445 | ||||||
Regal Rexnord Corp. | 17,162 | 2,452,107 | ||||||
Rockwell Automation, Inc. | 30,180 | 8,627,557 | ||||||
Sensata Technologies Holding PLC | 39,941 | 1,510,569 | ||||||
SES AI Corp., Class A(a)(b) | 44,578 | 101,192 | ||||||
Shoals Technologies Group, Inc., Class A(a)(b) | 42,516 | 775,917 | ||||||
Stem, Inc.(a)(b) | 41,890 | 177,614 | ||||||
SunPower Corp.(a)(b) | 20,160 | 124,387 | ||||||
Sunrun, Inc.(a)(b) | 53,057 | 666,396 | ||||||
Thermon Group Holdings, Inc.(a) | 8,650 | 237,615 | ||||||
TPI Composites, Inc.(a)(b) | 10,473 | 27,753 | ||||||
Vertiv Holdings Co., Class A | 90,162 | 3,354,026 | ||||||
Vicor Corp.(a) | 5,481 | 322,776 | ||||||
|
| |||||||
82,829,131 | ||||||||
Electronic Equipment, Instruments & Components — 0.7% | ||||||||
908 Devices, Inc.(a)(b) | 7,819 | 52,075 | ||||||
Advanced Energy Industries, Inc. | 9,465 | 976,031 | ||||||
Akoustis Technologies, Inc.(a) | 33,319 | 25,086 | ||||||
Amphenol Corp., Class A | 152,903 | 12,842,323 | ||||||
Arlo Technologies, Inc.(a) | 21,434 | 220,770 | ||||||
Arrow Electronics, Inc.(a) | 15,300 | 1,916,172 | ||||||
Avnet, Inc. | 24,085 | 1,160,656 | ||||||
Badger Meter, Inc. | 7,980 | 1,148,083 | ||||||
Bel Fuse, Inc., Class B, NVS | 2,719 | 129,751 | ||||||
Belden, Inc. | 11,083 | 1,070,064 | ||||||
Benchmark Electronics, Inc. | 10,522 | 255,264 | ||||||
CDW Corp. | 35,375 | 7,137,260 | ||||||
Cognex Corp. | 44,833 | 1,902,713 | ||||||
Coherent Corp.(a) | 30,431 | 993,268 | ||||||
Corning, Inc. | 199,440 | 6,076,937 | ||||||
Crane NXT Co. | 12,483 | 693,680 | ||||||
CTS Corp. | 8,192 | 341,934 | ||||||
Daktronics, Inc.(a) | 13,531 | 120,697 | ||||||
ePlus, Inc.(a) | 7,516 | 477,416 | ||||||
Evolv Technologies Holdings, Inc., Class A(a) | 33,888 | 164,696 | ||||||
Fabrinet(a) | 9,339 | 1,556,064 | ||||||
FARO Technologies, Inc.(a) | 4,156 | 63,296 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Insight Enterprises, Inc.(a)(b) | 7,275 | $ | 1,058,512 | |||||
IPG Photonics Corp.(a) | 8,425 | 855,474 | ||||||
Itron, Inc.(a) | 11,664 | 706,605 | ||||||
Jabil, Inc. | 33,944 | 4,307,154 | ||||||
Keysight Technologies, Inc.(a) | 46,866 | 6,200,840 | ||||||
Kimball Electronics, Inc.(a) | 5,966 | 163,349 | ||||||
Knowles Corp.(a) | 25,792 | 381,980 | ||||||
Lightwave Logic, Inc.(a)(b) | 31,301 | 139,915 | ||||||
Littelfuse, Inc. | 6,221 | 1,538,578 | ||||||
Luna Innovations, Inc.(a)(b) | 11,418 | 66,909 | ||||||
Methode Electronics, Inc. | 9,192 | 210,037 | ||||||
MicroVision, Inc.(a)(b) | 41,270 | 90,381 | ||||||
Mirion Technologies, Inc., Class A(a)(b) | 55,666 | 415,825 | ||||||
Napco Security Technologies, Inc. | 7,546 | 167,899 | ||||||
National Instruments Corp. | 34,617 | 2,063,866 | ||||||
nLight, Inc.(a) | 10,781 | 112,122 | ||||||
Novanta, Inc.(a) | 8,940 | 1,282,354 | ||||||
OSI Systems, Inc.(a) | 4,511 | 532,478 | ||||||
PAR Technology Corp.(a)(b) | 7,364 | 283,809 | ||||||
PC Connection, Inc. | 2,960 | 158,005 | ||||||
Plexus Corp.(a) | 7,380 | 686,192 | ||||||
Rogers Corp.(a) | 4,955 | 651,434 | ||||||
Sanmina Corp.(a) | 13,872 | 752,972 | ||||||
ScanSource, Inc.(a) | 6,742 | 204,350 | ||||||
SmartRent, Inc., Class A(a) | 38,044 | 99,295 | ||||||
TD SYNNEX Corp. | 10,892 | 1,087,675 | ||||||
Teledyne Technologies, Inc.(a) | 12,242 | 5,001,836 | ||||||
Trimble, Inc.(a) | 64,261 | 3,461,097 | ||||||
TTM Technologies, Inc.(a) | 23,829 | 306,918 | ||||||
Vishay Intertechnology, Inc. | 31,977 | 790,471 | ||||||
Vishay Precision Group, Inc.(a) | 3,216 | 107,993 | ||||||
Vontier Corp. | 42,277 | 1,307,205 | ||||||
Vuzix Corp.(a)(b) | 19,814 | 71,925 | ||||||
Zebra Technologies Corp., Class A(a)(b) | 13,262 | 3,136,861 | ||||||
|
| |||||||
77,726,552 | ||||||||
Energy Equipment & Services — 0.6% | ||||||||
AESI Holdings, Inc., Class A(b) | 6,596 | 146,629 | ||||||
Archrock, Inc. | 34,727 | 437,560 | ||||||
Baker Hughes Co., Class A | 265,654 | 9,382,899 | ||||||
Borr Drilling Ltd.(a) | 62,128 | 441,109 | ||||||
Bristow Group, Inc.(a) | 6,111 | 172,147 | ||||||
Cactus, Inc., Class A | 17,210 | 864,114 | ||||||
ChampionX Corp. | 50,896 | 1,812,915 | ||||||
Core Laboratories, Inc. | 12,185 | 292,562 | ||||||
Diamond Offshore Drilling, Inc.(a) | 26,223 | 384,954 | ||||||
DMC Global, Inc.(a) | 6,342 | 155,189 | ||||||
Dril-Quip, Inc.(a)(b) | 9,837 | 277,108 | ||||||
Expro Group Holdings NV(a) | 20,015 | 464,948 | ||||||
Halliburton Co. | 235,968 | 9,556,704 | ||||||
Helix Energy Solutions Group, Inc.(a) | 35,341 | 394,759 | ||||||
Helmerich & Payne, Inc. | 26,724 | 1,126,684 | ||||||
Kodiak Gas Services, Inc.(a) | 6,484 | 115,934 | ||||||
Liberty Energy, Inc., Class A | 47,203 | 874,200 | ||||||
Nabors Industries Ltd.(a) | 2,232 | 274,848 | ||||||
Newpark Resources, Inc.(a) | 26,017 | 179,777 | ||||||
Noble Corp. PLC | 27,983 | 1,417,339 | ||||||
NOV, Inc. | 103,968 | 2,172,931 | ||||||
Oceaneering International, Inc.(a) | 24,499 | 630,114 | ||||||
Oil States International, Inc.(a) | 22,862 | 191,355 | ||||||
Patterson-UTI Energy, Inc. | 89,965 | 1,245,116 | ||||||
ProFrac Holding Corp., Class A(a) | 8,111 | 88,248 | ||||||
ProPetro Holding Corp.(a) | 19,801 | 210,485 |
SCHEDULES OF INVESTMENTS | 15 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Energy Equipment & Services (continued) | ||||||||
RPC, Inc. | 20,563 | $ | 183,833 | |||||
Schlumberger NV | 373,742 | 21,789,159 | ||||||
SEACOR Marine Holdings, Inc.(a) | 9,837 | 136,538 | ||||||
Seadrill Ltd.(a) | 13,134 | 588,272 | ||||||
Select Water Solutions, Inc., Class A | 22,335 | 177,563 | ||||||
Solaris Oilfield Infrastructure, Inc., Class A | 12,455 | 132,770 | ||||||
TechnipFMC PLC | 115,049 | 2,340,097 | ||||||
TETRA Technologies, Inc.(a) | 41,996 | 267,934 | ||||||
Tidewater, Inc.(a) | 12,922 | 918,367 | ||||||
U.S. Silica Holdings, Inc.(a) | 21,132 | 296,693 | ||||||
Valaris Ltd.(a) | 15,533 | 1,164,664 | ||||||
Weatherford International PLC(a) | 18,129 | 1,637,593 | ||||||
|
| |||||||
62,944,111 | ||||||||
Entertainment — 1.3% | ||||||||
Activision Blizzard, Inc. | 190,422 | 17,829,212 | ||||||
AMC Entertainment Holdings, Inc., Class A(a)(b) | 15,226 | 121,656 | ||||||
Atlanta Braves Holdings, Inc., Class A(a) | 3,108 | 121,429 | ||||||
Atlanta Braves Holdings, Inc., Class C, NVS(a) | 10,208 | 364,732 | ||||||
Cinemark Holdings, Inc.(a)(b) | 28,937 | 530,994 | ||||||
Electronic Arts, Inc. | 72,229 | 8,696,371 | ||||||
IMAX Corp.(a) | 14,709 | 284,178 | ||||||
Liberty Media Corp. - Liberty Formula One, Class A(a) | 6,502 | 367,623 | ||||||
Liberty Media Corp. - Liberty Formula One, Class C(a) | 50,837 | 3,167,145 | ||||||
Liberty Media Corp. - Liberty Live, Class A(a) | 4,949 | 157,972 | ||||||
Liberty Media Corp. - Liberty Live, Class C, NVS(a)(b) | 12,135 | 389,533 | ||||||
Lions Gate Entertainment Corp., Class A(a)(b) | 14,083 | 119,424 | ||||||
Lions Gate Entertainment Corp., Class B, NVS(a) | 33,340 | 262,386 | ||||||
Live Nation Entertainment, Inc.(a) | 41,525 | 3,448,236 | ||||||
Madison Square Garden Entertainment Corp.(a) | 11,236 | 369,777 | ||||||
Madison Square Garden Sports Corp., Class A | 5,216 | 919,581 | ||||||
Marcus Corp. (The) | 7,194 | 111,507 | ||||||
Netflix, Inc.(a) | 115,219 | 43,506,694 | ||||||
Playstudios, Inc., Class A(a)(b) | 27,343 | 86,951 | ||||||
Playtika Holding Corp.(a) | 6,176 | 59,475 | ||||||
ROBLOX Corp., Class A(a) | 120,637 | 3,493,647 | ||||||
Roku, Inc., Class A(a) | 32,985 | 2,328,411 | ||||||
Sphere Entertainment Co., Class A(a)(b) | 6,800 | 252,688 | ||||||
Spotify Technology SA(a) | 36,548 | 5,651,783 | ||||||
Take-Two Interactive Software, Inc.(a) | 42,987 | 6,034,945 | ||||||
TKO Group Holdings, Inc., Class A(b) | 11,466 | 963,832 | ||||||
Walt Disney Co. (The)(a) | 480,493 | 38,943,958 | ||||||
Warner Bros Discovery, Inc., Class A(a) | 577,757 | 6,274,441 | ||||||
|
| |||||||
144,858,581 | ||||||||
Financial Services — 4.2% | ||||||||
Affirm Holdings, Inc., Class A(a)(b) | 56,992 | 1,212,220 | ||||||
Alerus Financial Corp. | 5,524 | 100,426 | ||||||
A-Mark Precious Metals, Inc. | 5,084 | 149,114 | ||||||
Apollo Global Management, Inc. | 136,865 | 12,285,002 | ||||||
AvidXchange Holdings, Inc.(a) | 37,630 | 356,732 | ||||||
Banco Latinoamericano de Comercio Exterior SA, Class E | 10,782 | 228,578 | ||||||
Berkshire Hathaway, Inc., Class B(a) | 481,153 | 168,547,896 | ||||||
Block, Inc., Class A(a) | 142,330 | 6,299,526 | ||||||
Cannae Holdings, Inc.(a) | 16,549 | 308,473 | ||||||
Cantaloupe, Inc.(a) | 24,315 | 151,969 | ||||||
Cass Information Systems, Inc. | 3,363 | 125,272 | ||||||
Compass Diversified Holdings | 20,036 | 376,076 | ||||||
Enact Holdings, Inc. | 8,396 | 228,623 | ||||||
Equitable Holdings, Inc. | 95,538 | 2,712,324 |
Security | Shares | Value | ||||||
Financial Services (continued) | ||||||||
Essent Group Ltd. | 28,917 | $ | 1,367,485 | |||||
Euronet Worldwide, Inc.(a) | 12,247 | 972,167 | ||||||
EVERTEC, Inc. | 18,923 | 703,557 | ||||||
Federal Agricultural Mortgage Corp., Class C, NVS | 2,491 | 384,361 | ||||||
Fidelity National Information Services, Inc. | 155,356 | 8,586,526 | ||||||
Fiserv, Inc.(a) | 160,142 | 18,089,640 | ||||||
FleetCor Technologies, Inc.(a)(b) | 18,826 | 4,807,031 | ||||||
Flywire Corp.(a) | 24,969 | 796,261 | ||||||
Global Payments, Inc. | 68,833 | 7,942,640 | ||||||
I3 Verticals, Inc., Class A(a) | 6,063 | 128,172 | ||||||
International Money Express, Inc.(a) | 9,445 | 159,904 | ||||||
Jack Henry & Associates, Inc. | 18,970 | 2,867,126 | ||||||
Jackson Financial, Inc., Class A | 19,798 | 756,680 | ||||||
Marqeta, Inc., Class A(a) | 138,672 | 829,259 | ||||||
Mastercard, Inc., Class A | 220,446 | 87,276,776 | ||||||
Merchants Bancorp | 5,137 | 142,398 | ||||||
MGIC Investment Corp. | 74,980 | 1,251,416 | ||||||
Mr. Cooper Group, Inc.(a) | 16,472 | 882,240 | ||||||
NewtekOne, Inc. | 6,571 | 96,922 | ||||||
NMI Holdings, Inc., Class A(a) | 21,911 | 593,569 | ||||||
Ocwen Financial Corp.(a) | 3,418 | 88,458 | ||||||
Pagseguro Digital Ltd., Class A(a) | 52,012 | 447,823 | ||||||
Payoneer Global, Inc.(a) | 72,535 | 443,914 | ||||||
PayPal Holdings, Inc.(a) | 294,497 | 17,216,295 | ||||||
Paysafe Ltd.(a) | 7,671 | 91,975 | ||||||
PennyMac Financial Services, Inc., Class A | 6,688 | 445,421 | ||||||
Radian Group, Inc. | 40,621 | 1,019,993 | ||||||
Remitly Global, Inc.(a) | 34,154 | 861,364 | ||||||
Repay Holdings Corp., Class A(a)(b) | 20,634 | 156,612 | ||||||
Rocket Cos., Inc., Class A(a) | 30,665 | 250,840 | ||||||
Shift4 Payments, Inc., Class A(a)(b) | 14,890 | 824,459 | ||||||
StoneCo Ltd., Class A(a) | 75,518 | 805,777 | ||||||
TFS Financial Corp. | 15,021 | 177,548 | ||||||
Toast, Inc., Class A(a)(b) | 92,851 | 1,739,099 | ||||||
UWM Holdings Corp., Class A | 32,771 | 158,939 | ||||||
Visa, Inc., Class A | 425,502 | 97,869,715 | ||||||
Voya Financial, Inc. | 26,002 | 1,727,833 | ||||||
Walker & Dunlop, Inc. | 9,197 | 682,785 | ||||||
Waterstone Financial, Inc. | 8,180 | 89,571 | ||||||
Western Union Co. (The) | 77,948 | 1,027,355 | ||||||
WEX, Inc.(a) | 11,549 | 2,172,252 | ||||||
|
| |||||||
460,014,389 | ||||||||
Food Products — 1.0% | ||||||||
Archer-Daniels-Midland Co. | 140,755 | 10,615,742 | ||||||
B&G Foods, Inc. | 16,707 | 165,232 | ||||||
Benson Hill, Inc.(a)(b) | 59,163 | 19,613 | ||||||
Beyond Meat, Inc.(a)(b) | 14,905 | 143,386 | ||||||
BRC, Inc., Class A(a)(b) | 13,957 | 50,106 | ||||||
Bunge Ltd. | 39,146 | 4,237,555 | ||||||
Calavo Growers, Inc. | 4,084 | 103,039 | ||||||
Cal-Maine Foods, Inc. | 9,300 | 450,306 | ||||||
Campbell Soup Co. | 50,181 | 2,061,436 | ||||||
Conagra Brands, Inc. | 124,882 | 3,424,264 | ||||||
Darling Ingredients, Inc.(a) | 41,915 | 2,187,963 | ||||||
Dole PLC | 18,589 | 215,261 | ||||||
Flowers Foods, Inc. | 48,864 | 1,083,804 | ||||||
Fresh Del Monte Produce, Inc. | 8,850 | 228,684 | ||||||
Freshpet, Inc.(a) | 12,025 | 792,207 | ||||||
General Mills, Inc. | 154,857 | 9,909,299 | ||||||
Hain Celestial Group, Inc. (The)(a) | 23,152 | 240,086 | ||||||
Hershey Co. (The) | 38,475 | 7,698,078 |
16 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Hormel Foods Corp. | 77,375 | $ | 2,942,571 | |||||
Hostess Brands, Inc., Class A(a) | 33,927 | 1,130,108 | ||||||
Ingredion, Inc. | 17,698 | 1,741,483 | ||||||
J & J Snack Foods Corp. | 4,063 | 664,910 | ||||||
J M Smucker Co. (The) | 26,016 | 3,197,627 | ||||||
John B Sanfilippo & Son, Inc. | 1,952 | 192,858 | ||||||
Kellanova | 68,677 | 4,086,968 | ||||||
Kraft Heinz Co. (The) | 210,669 | 7,086,905 | ||||||
Lamb Weston Holdings, Inc. | 38,325 | 3,543,530 | ||||||
Lancaster Colony Corp. | 4,993 | 823,995 | ||||||
Limoneira Co. | 7,345 | 112,525 | ||||||
McCormick & Co., Inc., NVS | 65,351 | 4,943,150 | ||||||
Mission Produce, Inc.(a)(b) | 10,335 | 100,043 | ||||||
Mondelez International, Inc., Class A | 356,826 | 24,763,724 | ||||||
Pilgrim’s Pride Corp.(a) | 13,698 | 312,725 | ||||||
Post Holdings, Inc.(a)(b) | 14,460 | 1,239,800 | ||||||
Seaboard Corp. | 75 | 281,475 | ||||||
Seneca Foods Corp., Class A(a) | 2,080 | 111,966 | ||||||
Simply Good Foods Co. (The)(a) | 22,576 | 779,324 | ||||||
Sovos Brands, Inc.(a)(b) | 13,315 | 300,253 | ||||||
SunOpta, Inc.(a)(b) | 27,677 | 93,272 | ||||||
TreeHouse Foods, Inc.(a) | 13,113 | 571,465 | ||||||
Tyson Foods, Inc., Class A | 71,965 | 3,633,513 | ||||||
Utz Brands, Inc., Class A(b) | 15,426 | 207,171 | ||||||
Vital Farms, Inc.(a) | 8,616 | 99,773 | ||||||
Westrock Coffee Co.(a)(b) | 9,947 | 88,130 | ||||||
|
| |||||||
106,675,325 | ||||||||
Gas Utilities — 0.1% | ||||||||
Atmos Energy Corp. | 37,459 | 3,968,032 | ||||||
Brookfield Infrastructure Corp., Class A | 24,265 | 857,525 | ||||||
Chesapeake Utilities Corp. | 4,565 | 446,229 | ||||||
National Fuel Gas Co. | 22,208 | 1,152,817 | ||||||
New Jersey Resources Corp. | 26,088 | 1,059,955 | ||||||
Northwest Natural Holding Co. | 8,578 | 327,336 | ||||||
ONE Gas, Inc. | 14,275 | 974,697 | ||||||
Southwest Gas Holdings, Inc. | 17,114 | 1,033,857 | ||||||
Spire, Inc. | 13,363 | 756,079 | ||||||
UGI Corp. | 55,728 | 1,281,744 | ||||||
|
| |||||||
11,858,271 | ||||||||
Ground Transportation — 1.1% | ||||||||
ArcBest Corp. | 6,097 | 619,760 | ||||||
Avis Budget Group, Inc.(a) | 5,355 | 962,240 | ||||||
Covenant Logistics Group, Inc., Class A | 3,689 | 161,763 | ||||||
CSX Corp. | 528,307 | 16,245,440 | ||||||
Daseke, Inc.(a) | 12,531 | 64,284 | ||||||
FTAI Infrastructure, Inc. | 32,153 | 103,533 | ||||||
Heartland Express, Inc. | 11,766 | 172,843 | ||||||
Hertz Global Holdings, Inc.(a) | 35,238 | 431,665 | ||||||
JB Hunt Transport Services, Inc. | 21,734 | 4,097,294 | ||||||
Knight-Swift Transportation Holdings, Inc. | 41,575 | 2,084,986 | ||||||
Landstar System, Inc. | 9,122 | 1,614,047 | ||||||
Lyft, Inc., Class A(a) | 83,785 | 883,094 | ||||||
Marten Transport Ltd. | 13,940 | 274,757 | ||||||
Norfolk Southern Corp. | 59,963 | 11,808,514 | ||||||
Old Dominion Freight Line, Inc.(b) | 25,777 | 10,546,402 | ||||||
RXO, Inc.(a) | 27,464 | 541,865 | ||||||
Ryder System, Inc. | 11,837 | 1,265,967 | ||||||
Saia, Inc.(a)(b) | 7,005 | 2,792,543 | ||||||
Schneider National, Inc., Class B | 14,634 | 405,215 | ||||||
TuSimple Holdings, Inc., Class A(a) | 34,499 | 53,818 | ||||||
Uber Technologies, Inc.(a) | 509,275 | 23,421,557 | ||||||
U-Haul Holding Co.(a) | 2,281 | 124,474 |
Security | Shares | Value | ||||||
Ground Transportation (continued) | ||||||||
U-Haul Holding Co., NVS(b) | 26,429 | $ | 1,384,615 | |||||
Union Pacific Corp. | 160,160 | 32,613,381 | ||||||
Universal Logistics Holdings, Inc. | 3,478 | 87,576 | ||||||
Werner Enterprises, Inc. | 16,180 | 630,211 | ||||||
XPO, Inc.(a) | 29,853 | 2,228,825 | ||||||
|
| |||||||
115,620,669 | ||||||||
Health Care Equipment & Supplies — 2.5% | ||||||||
Abbott Laboratories | 454,843 | 44,051,544 | ||||||
Accuray, Inc.(a)(b) | 29,139 | 79,258 | ||||||
Align Technology, Inc.(a) | 20,018 | 6,111,896 | ||||||
Alphatec Holdings, Inc.(a)(b) | 21,095 | 273,602 | ||||||
AngioDynamics, Inc.(a) | 10,105 | 73,868 | ||||||
Artivion, Inc.(a) | 10,426 | 158,058 | ||||||
AtriCure, Inc.(a) | 11,909 | 521,614 | ||||||
Atrion Corp. | 382 | 157,831 | ||||||
Avanos Medical, Inc.(a) | 11,933 | 241,285 | ||||||
Axogen, Inc.(a) | 10,840 | 54,200 | ||||||
Axonics, Inc.(a)(b) | 12,657 | 710,311 | ||||||
Baxter International, Inc. | 131,632 | 4,967,792 | ||||||
Becton Dickinson & Co. | 74,344 | 19,220,154 | ||||||
Boston Scientific Corp.(a) | 377,136 | 19,912,781 | ||||||
Butterfly Network, Inc., Class A(a)(b) | 47,200 | 55,696 | ||||||
Cerus Corp.(a) | 38,367 | 62,154 | ||||||
CONMED Corp. | 7,743 | 780,881 | ||||||
Cooper Cos., Inc. (The) | 12,871 | 4,093,107 | ||||||
Cutera, Inc.(a)(b) | 4,055 | 24,411 | ||||||
DENTSPLY SIRONA, Inc. | 57,694 | 1,970,827 | ||||||
Dexcom, Inc.(a) | 101,561 | 9,475,641 | ||||||
Edwards Lifesciences Corp.(a) | 157,911 | 10,940,074 | ||||||
Embecta Corp. | 15,911 | 239,461 | ||||||
Enovis Corp.(a) | 13,830 | 729,256 | ||||||
Envista Holdings Corp.(a) | 42,670 | 1,189,640 | ||||||
GE HealthCare Technologies, Inc. | 102,647 | 6,984,102 | ||||||
Glaukos Corp.(a) | 11,717 | 881,704 | ||||||
Globus Medical, Inc., Class A(a)(b) | 32,267 | 1,602,056 | ||||||
Haemonetics Corp.(a) | 13,541 | 1,213,003 | ||||||
Hologic, Inc.(a) | 64,660 | 4,487,404 | ||||||
ICU Medical, Inc.(a)(b) | 5,044 | 600,286 | ||||||
IDEXX Laboratories, Inc.(a) | 21,599 | 9,444,595 | ||||||
Inari Medical, Inc.(a) | 14,644 | 957,718 | ||||||
Inmode Ltd.(a)(b) | 20,128 | 613,099 | ||||||
Inogen, Inc.(a) | 4,620 | 24,116 | ||||||
Inspire Medical Systems, Inc.(a) | 7,625 | 1,513,105 | ||||||
Insulet Corp.(a) | 18,103 | 2,887,247 | ||||||
Integer Holdings Corp.(a) | 8,994 | 705,399 | ||||||
Integra LifeSciences Holdings Corp.(a) | 19,086 | 728,894 | ||||||
Intuitive Surgical, Inc.(a) | 91,992 | 26,888,342 | ||||||
iRadimed Corp. | 2,724 | 120,864 | ||||||
iRhythm Technologies, Inc.(a)(b) | 7,873 | 742,109 | ||||||
Lantheus Holdings, Inc.(a) | 17,294 | 1,201,587 | ||||||
LeMaitre Vascular, Inc. | 4,715 | 256,873 | ||||||
LivaNova PLC(a) | 13,640 | 721,283 | ||||||
Masimo Corp.(a) | 11,369 | 996,834 | ||||||
Medtronic PLC | 348,994 | 27,347,170 | ||||||
Merit Medical Systems, Inc.(a) | 15,357 | 1,059,940 | ||||||
Nano-X Imaging Ltd.(a)(b) | 14,378 | 94,320 | ||||||
Neogen Corp.(a)(b) | 56,467 | 1,046,898 | ||||||
Nevro Corp.(a)(b) | 8,986 | 172,711 | ||||||
Novocure Ltd.(a) | 26,586 | 429,364 | ||||||
Omnicell, Inc.(a) | 11,445 | 515,483 | ||||||
OraSure Technologies, Inc.(a) | 20,428 | 121,138 | ||||||
Orthofix Medical, Inc.(a) | 8,982 | 115,508 |
SCHEDULES OF INVESTMENTS | 17 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) | ||||||||
OrthoPediatrics Corp.(a) | 2,830 | $ | 90,560 | |||||
Outset Medical, Inc.(a)(b) | 12,450 | 135,456 | ||||||
Paragon 28, Inc.(a) | 14,582 | 183,004 | ||||||
Penumbra, Inc.(a) | 9,535 | 2,306,612 | ||||||
PROCEPT BioRobotics Corp.(a)(b) | 10,932 | 358,679 | ||||||
Pulmonx Corp.(a) | 7,934 | 81,958 | ||||||
QuidelOrtho Corp.(a) | 14,299 | 1,044,399 | ||||||
ResMed, Inc. | 38,098 | 5,633,551 | ||||||
RxSight, Inc.(a)(b) | 8,066 | 224,961 | ||||||
Shockwave Medical, Inc.(a) | 9,337 | 1,858,997 | ||||||
SI-BONE, Inc.(a) | 7,504 | 159,385 | ||||||
Silk Road Medical, Inc.(a)(b) | 9,216 | 138,148 | ||||||
STAAR Surgical Co.(a)(b) | 12,498 | 502,170 | ||||||
STERIS PLC | 25,990 | 5,702,726 | ||||||
Stryker Corp. | 93,226 | 25,475,869 | ||||||
Surmodics, Inc.(a) | 3,803 | 122,038 | ||||||
Tactile Systems Technology, Inc.(a) | 7,152 | 100,486 | ||||||
Tandem Diabetes Care, Inc.(a) | 16,193 | 336,329 | ||||||
Teleflex, Inc.(b) | 12,121 | 2,380,686 | ||||||
TransMedics Group, Inc.(a)(b) | 8,653 | 473,752 | ||||||
Treace Medical Concepts, Inc.(a) | 10,606 | 139,045 | ||||||
UFP Technologies, Inc.(a) | 1,959 | 316,281 | ||||||
Utah Medical Products, Inc. | 1,136 | 97,696 | ||||||
Varex Imaging Corp.(a) | 9,699 | 182,244 | ||||||
Zimmer Biomet Holdings, Inc. | 55,288 | 6,204,419 | ||||||
Zimvie, Inc.(a) | 2,147 | 20,203 | ||||||
Zynex, Inc.(a)(b) | 7,274 | 58,192 | ||||||
|
| |||||||
274,896,340 | ||||||||
Health Care Providers & Services — 2.8% | ||||||||
23andMe Holding Co., Class A(a)(b) | 61,041 | 59,680 | ||||||
Acadia Healthcare Co., Inc.(a) | 24,304 | 1,708,814 | ||||||
Accolade, Inc.(a) | 14,764 | 156,203 | ||||||
AdaptHealth Corp.(a) | 19,915 | 181,226 | ||||||
Addus HomeCare Corp.(a) | 4,377 | 372,877 | ||||||
Agiliti, Inc.(a)(b) | 7,183 | 46,618 | ||||||
agilon health, Inc.(a)(b) | 74,909 | 1,330,384 | ||||||
Alignment Healthcare, Inc.(a) | 20,499 | 142,263 | ||||||
Amedisys, Inc.(a) | 8,669 | 809,685 | ||||||
AMN Healthcare Services, Inc.(a) | 11,237 | 957,168 | ||||||
Apollo Medical Holdings, Inc.(a) | 12,248 | 377,851 | ||||||
Brookdale Senior Living, Inc.(a)(b) | 48,907 | 202,475 | ||||||
Cano Health, Inc., Class A(a)(b) | 46,686 | 11,840 | ||||||
Cardinal Health, Inc. | 67,224 | 5,836,388 | ||||||
CareMax, Inc., Class A(a) | 22,195 | 47,053 | ||||||
Castle Biosciences, Inc.(a) | 5,310 | 89,686 | ||||||
Cencora, Inc. | 42,387 | 7,628,388 | ||||||
Centene Corp.(a) | 142,616 | 9,823,390 | ||||||
Chemed Corp. | 3,892 | 2,022,672 | ||||||
Cigna Group (The) | 76,626 | 21,920,400 | ||||||
Community Health Systems, Inc.(a) | 40,557 | 117,615 | ||||||
CorVel Corp.(a)(b) | 2,067 | 406,476 | ||||||
Cross Country Healthcare, Inc.(a) | 11,868 | 294,208 | ||||||
CVS Health Corp. | 337,500 | 23,564,250 | ||||||
DaVita, Inc.(a)(b) | 14,302 | 1,351,968 | ||||||
DocGo, Inc.(a)(b) | 24,314 | 129,594 | ||||||
Elevance Health, Inc. | 62,445 | 27,189,802 | ||||||
Encompass Health Corp. | 25,273 | 1,697,335 | ||||||
Enhabit, Inc.(a)(b) | 14,221 | 159,986 | ||||||
Ensign Group, Inc. (The) | 14,775 | 1,373,041 | ||||||
Fulgent Genetics, Inc.(a) | 5,189 | 138,754 | ||||||
Guardant Health, Inc.(a) | 28,812 | 853,988 | ||||||
HCA Healthcare, Inc. | 53,639 | 13,194,121 |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
HealthEquity, Inc.(a) | 21,265 | $ | 1,553,408 | |||||
Henry Schein, Inc.(a) | 33,653 | 2,498,735 | ||||||
Hims & Hers Health, Inc., Class A(a) | 31,460 | 197,883 | ||||||
Humana, Inc. | 32,790 | 15,952,991 | ||||||
Invitae Corp.(a)(b) | 52,468 | 31,754 | ||||||
Laboratory Corp. of America Holdings | 23,276 | 4,679,640 | ||||||
LifeStance Health Group, Inc.(a)(b) | 23,147 | 159,020 | ||||||
McKesson Corp. | 35,750 | 15,545,887 | ||||||
ModivCare, Inc.(a) | 3,062 | 96,484 | ||||||
Molina Healthcare, Inc.(a) | 15,053 | 4,935,728 | ||||||
National HealthCare Corp. | 3,463 | 221,563 | ||||||
National Research Corp., Class A | 3,723 | 165,189 | ||||||
NeoGenomics, Inc.(a) | 33,988 | 418,052 | ||||||
OPKO Health, Inc.(a)(b) | 99,565 | 159,304 | ||||||
Option Care Health, Inc.(a) | 43,646 | 1,411,948 | ||||||
Owens & Minor, Inc.(a) | 19,281 | 311,581 | ||||||
Patterson Cos., Inc. | 21,319 | 631,895 | ||||||
Pediatrix Medical Group, Inc.(a) | 20,453 | 259,958 | ||||||
Pennant Group, Inc. (The)(a) | 8,502 | 94,627 | ||||||
PetIQ, Inc., Class A(a) | 9,260 | 182,422 | ||||||
Premier, Inc., Class A | 32,394 | 696,471 | ||||||
Privia Health Group, Inc.(a)(b) | 17,577 | 404,271 | ||||||
Progyny, Inc.(a) | 20,799 | 707,582 | ||||||
Quest Diagnostics, Inc. | 29,169 | 3,554,534 | ||||||
R1 RCM, Inc.(a) | 38,119 | 574,453 | ||||||
RadNet, Inc.(a) | 13,922 | 392,461 | ||||||
Select Medical Holdings Corp. | 26,278 | 664,045 | ||||||
Surgery Partners, Inc.(a)(b) | 17,544 | 513,162 | ||||||
Tenet Healthcare Corp.(a) | 27,212 | 1,792,999 | ||||||
U.S. Physical Therapy, Inc. | 3,490 | 320,138 | ||||||
UnitedHealth Group, Inc. | 244,241 | 123,143,870 | ||||||
Universal Health Services, Inc., Class B | 15,710 | 1,975,218 | ||||||
Viemed Healthcare, Inc.(a) | 11,524 | 77,556 | ||||||
|
| |||||||
308,521,028 | ||||||||
Health Care REITs — 0.2% | ||||||||
CareTrust REIT, Inc. | 25,983 | 532,651 | ||||||
Community Healthcare Trust, Inc. | 5,714 | 169,706 | ||||||
Diversified Healthcare Trust | 81,516 | 158,141 | ||||||
Global Medical REIT, Inc. | 11,508 | 103,227 | ||||||
Healthcare Realty Trust, Inc. | 98,243 | 1,500,171 | ||||||
Healthpeak Properties, Inc. | 144,691 | 2,656,527 | ||||||
LTC Properties, Inc. | 9,754 | 313,396 | ||||||
Medical Properties Trust, Inc. | 155,812 | 849,175 | ||||||
National Health Investors, Inc. | 11,242 | 577,389 | ||||||
Omega Healthcare Investors, Inc. | 60,421 | 2,003,560 | ||||||
Physicians Realty Trust | 61,395 | 748,405 | ||||||
Sabra Health Care REIT, Inc. | 62,422 | 870,163 | ||||||
Universal Health Realty Income Trust | 3,201 | 129,416 | ||||||
Ventas, Inc. | 104,717 | 4,411,727 | ||||||
Welltower, Inc. | 130,356 | 10,678,764 | ||||||
|
| |||||||
25,702,418 | ||||||||
Health Care Technology — 0.1% | ||||||||
American Well Corp., Class A(a) | 51,659 | 60,441 | ||||||
Certara, Inc.(a) | 28,232 | 410,493 | ||||||
Computer Programs & Systems, Inc.(a) | 3,961 | 63,138 | ||||||
Definitive Healthcare Corp., Class A(a)(b) | 10,313 | 82,401 | ||||||
Doximity, Inc., Class A(a)(b) | 29,256 | 620,812 | ||||||
Evolent Health, Inc., Class A(a)(b) | 28,619 | 779,296 | ||||||
Health Catalyst, Inc.(a) | 11,949 | 120,924 | ||||||
HealthStream, Inc. | 6,811 | 146,982 | ||||||
Multiplan Corp., Class A(a) | 98,446 | 165,389 | ||||||
NextGen Healthcare, Inc.(a) | 13,121 | 311,361 |
18 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Technology (continued) | ||||||||
OptimizeRx Corp.(a) | 5,160 | $ | 40,145 | |||||
Phreesia, Inc.(a)(b) | 12,638 | 236,078 | ||||||
Schrodinger, Inc.(a) | 15,486 | 437,789 | ||||||
Sharecare, Inc., Class A(a) | 92,343 | 86,839 | ||||||
Simulations Plus, Inc. | 4,111 | 171,429 | ||||||
Teladoc Health, Inc.(a)(b) | 43,997 | 817,904 | ||||||
Veeva Systems, Inc., Class A(a) | 37,974 | 7,725,810 | ||||||
Veradigm, Inc.(a) | 30,299 | 398,129 | ||||||
|
| |||||||
12,675,360 | ||||||||
Hotel & Resort REITs — 0.1% | ||||||||
Apple Hospitality REIT, Inc. | 53,496 | 820,629 | ||||||
Braemar Hotels & Resorts, Inc. | 22,462 | 62,220 | ||||||
Chatham Lodging Trust | 12,738 | 121,903 | ||||||
DiamondRock Hospitality Co. | 56,132 | 450,740 | ||||||
Hersha Hospitality Trust, Class A | 13,250 | 130,645 | ||||||
Host Hotels & Resorts, Inc. | 184,994 | 2,972,853 | ||||||
Park Hotels & Resorts, Inc. | 58,715 | 723,369 | ||||||
Pebblebrook Hotel Trust(b) | 33,874 | 460,348 | ||||||
RLJ Lodging Trust | 45,405 | 444,515 | ||||||
Ryman Hospitality Properties, Inc. | 15,302 | 1,274,350 | ||||||
Service Properties Trust | 42,788 | 329,040 | ||||||
Summit Hotel Properties, Inc. | 29,002 | 168,211 | ||||||
Sunstone Hotel Investors, Inc. | 54,345 | 508,126 | ||||||
Xenia Hotels & Resorts, Inc. | 29,609 | 348,794 | ||||||
|
| |||||||
8,815,743 | ||||||||
Hotels, Restaurants & Leisure — 2.2% | ||||||||
Accel Entertainment, Inc., Class A(a) | 12,859 | 140,806 | ||||||
Airbnb, Inc., Class A(a)(b) | 106,270 | 14,581,307 | ||||||
Aramark | 61,040 | 2,118,088 | ||||||
Bally’s Corp.(a) | 8,364 | 109,652 | ||||||
BJ’s Restaurants, Inc.(a) | 5,944 | 139,446 | ||||||
Bloomin’ Brands, Inc. | 22,877 | 562,545 | ||||||
Bluegreen Vacations Holding Corp., Class A | 3,840 | 140,851 | ||||||
Booking Holdings, Inc.(a) | 9,735 | 30,022,253 | ||||||
Bowlero Corp., Class A(a)(b) | 11,932 | 114,786 | ||||||
Boyd Gaming Corp. | 19,255 | 1,171,282 | ||||||
Brinker International, Inc.(a) | 11,909 | 376,205 | ||||||
Caesars Entertainment, Inc.(a) | 53,083 | 2,460,397 | ||||||
Carnival Corp.(a)(b) | 260,111 | 3,568,723 | ||||||
Cava Group, Inc.(a)(b) | 4,253 | 130,269 | ||||||
Cheesecake Factory, Inc. (The) | 11,490 | 348,147 | ||||||
Chipotle Mexican Grill, Inc.(a) | 7,226 | 13,236,804 | ||||||
Choice Hotels International, Inc. | 8,482 | 1,039,130 | ||||||
Churchill Downs, Inc. | 19,066 | 2,212,419 | ||||||
Chuy’s Holdings, Inc.(a)(b) | 5,668 | 201,667 | ||||||
Cracker Barrel Old Country Store, Inc. | 5,732 | 385,190 | ||||||
Darden Restaurants, Inc. | 31,648 | 4,532,627 | ||||||
Dave & Buster’s Entertainment, Inc.(a) | 9,410 | 348,829 | ||||||
Denny’s Corp.(a) | 17,329 | 146,777 | ||||||
Dine Brands Global, Inc. | 4,499 | 222,476 | ||||||
Domino’s Pizza, Inc. | 9,310 | 3,526,535 | ||||||
DoorDash, Inc., Class A(a) | 79,105 | 6,286,474 | ||||||
DraftKings, Inc., Class A(a) | 109,590 | 3,226,330 | ||||||
El Pollo Loco Holdings, Inc. | 11,236 | 100,562 | ||||||
Everi Holdings, Inc.(a) | 23,829 | 315,019 | ||||||
Expedia Group, Inc.(a) | 37,247 | 3,839,048 | ||||||
First Watch Restaurant Group, Inc.(a)(b) | 6,306 | 109,031 | ||||||
Golden Entertainment, Inc. | 5,165 | 176,540 | ||||||
Hilton Grand Vacations, Inc.(a) | 23,030 | 937,321 | ||||||
Hilton Worldwide Holdings, Inc. | 67,418 | 10,124,835 | ||||||
Hyatt Hotels Corp., Class A | 12,476 | 1,323,454 | ||||||
Inspired Entertainment, Inc.(a) | 6,545 | 78,278 |
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
International Game Technology PLC | 28,467 | $ | 863,119 | |||||
Jack in the Box, Inc. | 5,375 | 371,198 | ||||||
Krispy Kreme, Inc. | 22,037 | 274,801 | ||||||
Kura Sushi U.S.A., Inc., Class A(a)(b) | 1,494 | 98,783 | ||||||
Las Vegas Sands Corp. | 87,710 | 4,020,626 | ||||||
Life Time Group Holdings, Inc.(a)(b) | 10,061 | 153,028 | ||||||
Light & Wonder, Inc., Class A(a)(b) | 23,360 | 1,666,269 | ||||||
Lindblad Expeditions Holdings, Inc.(a)(b) | 12,340 | 88,848 | ||||||
Marriott International, Inc., Class A | 65,340 | 12,843,230 | ||||||
Marriott Vacations Worldwide Corp. | 9,647 | 970,778 | ||||||
McDonald’s Corp. | 191,626 | 50,481,954 | ||||||
MGM Resorts International | 75,594 | 2,778,835 | ||||||
Monarch Casino & Resort, Inc. | 3,597 | 223,374 | ||||||
Mondee Holdings, Inc., Class A(a)(b) | 12,296 | 43,897 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) | 114,028 | 1,879,181 | ||||||
Papa John’s International, Inc. | 8,629 | 588,670 | ||||||
Penn Entertainment, Inc.(a) | 42,752 | 981,158 | ||||||
Planet Fitness, Inc., Class A(a) | 22,307 | 1,097,058 | ||||||
Portillo’s, Inc., Class A(a)(b) | 10,364 | 159,502 | ||||||
RCI Hospitality Holdings, Inc. | 2,910 | 176,521 | ||||||
Red Rock Resorts, Inc., Class A | 12,718 | 521,438 | ||||||
Royal Caribbean Cruises Ltd.(a) | 61,365 | 5,654,171 | ||||||
Rush Street Interactive, Inc., Class A(a) | 22,780 | 105,244 | ||||||
Sabre Corp.(a) | 84,616 | 379,926 | ||||||
SeaWorld Entertainment, Inc.(a) | 9,970 | 461,113 | ||||||
Shake Shack, Inc., Class A(a) | 9,363 | 543,709 | ||||||
Six Flags Entertainment Corp.(a) | 21,175 | 497,824 | ||||||
Starbucks Corp. | 297,168 | 27,122,523 | ||||||
Super Group SGHC Ltd.(a)(b) | 35,450 | 130,811 | ||||||
Sweetgreen, Inc., Class A(a)(b) | 24,787 | 291,247 | ||||||
Target Hospitality Corp.(a) | 9,488 | 150,669 | ||||||
Texas Roadhouse, Inc. | 16,977 | 1,631,490 | ||||||
Travel + Leisure Co. | 18,710 | 687,218 | ||||||
Vail Resorts, Inc. | 10,036 | 2,226,888 | ||||||
Wendy’s Co. (The) | 47,408 | 967,597 | ||||||
Wingstop, Inc. | 7,589 | 1,364,806 | ||||||
Wyndham Hotels & Resorts, Inc. | 22,763 | 1,582,939 | ||||||
Wynn Resorts Ltd. | 27,692 | 2,559,018 | ||||||
Xponential Fitness, Inc., Class A(a) | 4,799 | 74,385 | ||||||
Yum! Brands, Inc. | 73,525 | 9,186,214 | ||||||
|
| |||||||
244,254,163 | ||||||||
Household Durables — 0.5% | ||||||||
Beazer Homes U.S.A., Inc.(a) | 9,721 | 242,150 | ||||||
Cavco Industries, Inc.(a) | 2,349 | 624,035 | ||||||
Century Communities, Inc. | 7,081 | 472,869 | ||||||
Cricut, Inc., Class A | 12,426 | 115,438 | ||||||
DR Horton, Inc. | 81,599 | 8,769,445 | ||||||
Dream Finders Homes, Inc., Class A(a)(b) | 7,744 | 172,149 | ||||||
Ethan Allen Interiors, Inc. | 5,955 | 178,054 | ||||||
Garmin Ltd. | 39,898 | 4,197,270 | ||||||
GoPro, Inc., Class A(a) | 31,333 | 98,386 | ||||||
Green Brick Partners, Inc.(a)(b) | 8,178 | 339,469 | ||||||
Helen of Troy Ltd.(a)(b) | 6,324 | 737,125 | ||||||
Hovnanian Enterprises, Inc., Class A(a) | 1,510 | 153,507 | ||||||
Installed Building Products, Inc. | 5,946 | 742,596 | ||||||
iRobot Corp.(a) | 7,184 | 272,274 | ||||||
KB Home | 19,904 | 921,157 | ||||||
La-Z-Boy, Inc. | 12,628 | 389,953 | ||||||
Leggett & Platt, Inc. | 35,878 | 911,660 | ||||||
Lennar Corp., Class A | 64,814 | 7,274,075 | ||||||
Lennar Corp., Class B(b) | 3,825 | 391,030 | ||||||
LGI Homes, Inc.(a)(b) | 5,881 | 585,101 |
SCHEDULES OF INVESTMENTS | 19 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Household Durables (continued) | ||||||||
Lovesac Co. (The)(a)(b) | 3,794 | $ | 75,576 | |||||
M/I Homes, Inc.(a) | 7,207 | 605,676 | ||||||
MDC Holdings, Inc. | 14,718 | 606,823 | ||||||
Meritage Homes Corp. | 9,681 | 1,184,858 | ||||||
Mohawk Industries, Inc.(a) | 13,710 | 1,176,455 | ||||||
Newell Brands, Inc. | 97,303 | 878,646 | ||||||
NVR, Inc.(a) | 777 | 4,633,484 | ||||||
PulteGroup, Inc. | 57,467 | 4,255,431 | ||||||
Skyline Champion Corp.(a) | 13,258 | 844,800 | ||||||
Sonos, Inc.(a)(b) | 31,909 | 411,945 | ||||||
Taylor Morrison Home Corp., Class A(a) | 28,889 | 1,230,960 | ||||||
Tempur Sealy International, Inc. | 43,504 | 1,885,463 | ||||||
Toll Brothers, Inc. | 29,151 | 2,156,008 | ||||||
TopBuild Corp.(a) | 8,186 | 2,059,598 | ||||||
Tri Pointe Homes, Inc.(a) | 25,485 | 697,015 | ||||||
Vizio Holding Corp., Class A(a) | 19,147 | 103,585 | ||||||
Whirlpool Corp. | 14,106 | 1,885,972 | ||||||
|
| |||||||
52,280,038 | ||||||||
Household Products — 1.2% | ||||||||
Central Garden & Pet Co.(a) | 2,556 | 112,822 | ||||||
Central Garden & Pet Co., Class A, NVS(a) | 11,457 | 459,311 | ||||||
Church & Dwight Co., Inc. | 63,731 | 5,839,672 | ||||||
Clorox Co. (The) | 32,645 | 4,278,454 | ||||||
Colgate-Palmolive Co. | 215,343 | 15,313,041 | ||||||
Energizer Holdings, Inc. | 19,088 | 611,579 | ||||||
Kimberly-Clark Corp. | 88,749 | 10,725,317 | ||||||
Oil-Dri Corp. of America | 1,926 | 118,930 | ||||||
Procter & Gamble Co. (The) | 618,591 | 90,227,683 | ||||||
Reynolds Consumer Products, Inc. | 14,149 | 362,639 | ||||||
Spectrum Brands Holdings, Inc. | 10,111 | 792,197 | ||||||
WD-40 Co. | 3,543 | 720,079 | ||||||
|
| |||||||
129,561,724 | ||||||||
Independent Power and Renewable Electricity Producers — 0.1% | ||||||||
AES Corp. (The) | 177,167 | 2,692,938 | ||||||
Altus Power, Inc., Class A(a)(b) | 13,864 | 72,786 | ||||||
Brookfield Renewable Corp., Class A | 34,126 | 816,976 | ||||||
Clearway Energy, Inc., Class A | 8,216 | 163,663 | ||||||
Clearway Energy, Inc., Class C | 22,866 | 483,845 | ||||||
Montauk Renewables, Inc.(a)(b) | 18,689 | 170,257 | ||||||
Ormat Technologies, Inc. | 13,704 | 958,184 | ||||||
Sunnova Energy International, Inc.(a)(b) | 27,149 | 284,250 | ||||||
Vistra Corp. | 98,396 | 3,264,779 | ||||||
|
| |||||||
8,907,678 | ||||||||
Industrial Conglomerates — 0.7% | ||||||||
3M Co. | 144,172 | 13,497,383 | ||||||
Brookfield Business Corp., Class A(b) | 5,381 | 97,288 | ||||||
General Electric Co. | 285,451 | 31,556,608 | ||||||
Honeywell International, Inc. | 174,935 | 32,317,492 | ||||||
|
| |||||||
77,468,771 | ||||||||
Industrial REITs — 0.4% | ||||||||
Americold Realty Trust, Inc. | 70,035 | 2,129,765 | ||||||
EastGroup Properties, Inc. | 11,493 | 1,913,929 | ||||||
First Industrial Realty Trust, Inc. | 34,032 | 1,619,583 | ||||||
Innovative Industrial Properties, Inc. | 7,689 | 581,750 | ||||||
LXP Industrial Trust | 72,838 | 648,258 | ||||||
Plymouth Industrial REIT, Inc. | 11,653 | 244,130 | ||||||
Prologis, Inc. | 242,124 | 27,168,734 | ||||||
Rexford Industrial Realty, Inc. | 54,235 | 2,676,497 |
Security | Shares | Value | ||||||
Industrial REITs (continued) | ||||||||
STAG Industrial, Inc. | 46,219 | $ | 1,595,018 | |||||
Terreno Realty Corp. | 20,681 | 1,174,681 | ||||||
|
| |||||||
39,752,345 | ||||||||
Insurance — 2.3% | ||||||||
Aflac, Inc. | 157,841 | 12,114,297 | ||||||
Allstate Corp. (The) | 69,078 | 7,695,980 | ||||||
Ambac Financial Group, Inc.(a) | 12,872 | 155,236 | ||||||
American Equity Investment Life Holding Co.(a) | 20,230 | 1,085,137 | ||||||
American Financial Group, Inc. | 19,243 | 2,148,866 | ||||||
American International Group, Inc. | 190,089 | 11,519,393 | ||||||
AMERISAFE, Inc. | 4,851 | 242,890 | ||||||
Aon PLC, Class A | 53,056 | 17,201,816 | ||||||
Arch Capital Group Ltd.(a) | 93,981 | 7,491,226 | ||||||
Argo Group International Holdings Ltd. | 8,165 | 243,644 | ||||||
Arthur J. Gallagher & Co. | 55,529 | 12,656,725 | ||||||
Assurant, Inc. | 13,834 | 1,986,286 | ||||||
Assured Guaranty Ltd. | 16,184 | 979,456 | ||||||
Axis Capital Holdings Ltd. | 20,936 | 1,180,162 | ||||||
Brighthouse Financial, Inc.(a) | 17,215 | 842,502 | ||||||
Brown & Brown, Inc. | 63,088 | 4,406,066 | ||||||
BRP Group, Inc., Class A(a)(b) | 16,099 | 373,980 | ||||||
Chubb Ltd. | 108,193 | 22,523,619 | ||||||
Cincinnati Financial Corp. | 40,391 | 4,131,595 | ||||||
CNA Financial Corp. | 7,956 | 313,069 | ||||||
CNO Financial Group, Inc. | 31,836 | 755,468 | ||||||
Donegal Group, Inc., Class A | 6,890 | 98,217 | ||||||
Employers Holdings, Inc. | 6,811 | 272,099 | ||||||
Enstar Group Ltd.(a) | 3,115 | 753,830 | ||||||
Everest Group Ltd. | 11,186 | 4,157,501 | ||||||
F&G Annuities & Life, Inc. | 4,648 | 130,423 | ||||||
Fidelity National Financial, Inc., Class A | 69,682 | 2,877,867 | ||||||
First American Financial Corp. | 27,229 | 1,538,166 | ||||||
Genworth Financial, Inc., Class A(a) | 124,120 | 727,343 | ||||||
Globe Life, Inc. | 23,307 | 2,534,170 | ||||||
Goosehead Insurance, Inc., Class A(a)(b) | 6,263 | 466,781 | ||||||
Hanover Insurance Group, Inc. (The) | 9,318 | 1,034,112 | ||||||
Hartford Financial Services Group, Inc. (The) | 79,849 | 5,662,093 | ||||||
HCI Group, Inc. | 997 | 54,127 | ||||||
Hippo Holdings, Inc.(a)(b) | 6,332 | 50,466 | ||||||
Horace Mann Educators Corp. | 10,907 | 320,448 | ||||||
James River Group Holdings Ltd. | 8,472 | 130,045 | ||||||
Kemper Corp. | 16,183 | 680,171 | ||||||
Kinsale Capital Group, Inc.(b) | 5,723 | 2,370,066 | ||||||
Lemonade, Inc.(a)(b) | 10,400 | 120,848 | ||||||
Lincoln National Corp. | 45,044 | 1,112,136 | ||||||
Loews Corp. | 48,721 | 3,084,527 | ||||||
Markel Group, Inc.(a)(b) | 3,455 | 5,087,453 | ||||||
Marsh & McLennan Cos., Inc. | 129,880 | 24,716,164 | ||||||
MBIA, Inc.(a) | 14,839 | 106,989 | ||||||
Mercury General Corp. | 6,949 | 194,780 | ||||||
MetLife, Inc. | 169,714 | 10,676,708 | ||||||
National Western Life Group, Inc., Class A | 553 | 241,932 | ||||||
Old Republic International Corp. | 70,181 | 1,890,676 | ||||||
Oscar Health, Inc., Class A(a) | 38,330 | 213,498 | ||||||
Palomar Holdings, Inc.(a) | 5,752 | 291,914 | ||||||
Primerica, Inc. | 9,871 | 1,915,073 | ||||||
Principal Financial Group, Inc. | 63,977 | 4,610,822 | ||||||
ProAssurance Corp. | 12,861 | 242,944 | ||||||
Progressive Corp. (The) | 153,528 | 21,386,450 | ||||||
Prudential Financial, Inc. | 96,487 | 9,155,651 | ||||||
Reinsurance Group of America, Inc. | 17,332 | 2,516,433 | ||||||
RenaissanceRe Holdings Ltd. | 12,973 | 2,567,616 |
20 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
RLI Corp. | 10,468 | $ | 1,422,497 | |||||
Ryan Specialty Holdings, Inc., Class A(a)(b) | 24,034 | 1,163,246 | ||||||
Safety Insurance Group, Inc. | 3,821 | 260,554 | ||||||
Selective Insurance Group, Inc. | 15,272 | 1,575,612 | ||||||
Selectquote, Inc.(a) | 44,173 | 51,682 | ||||||
SiriusPoint Ltd.(a) | 23,851 | 242,565 | ||||||
Skyward Specialty Insurance Group, Inc.(a) | 4,736 | 129,577 | ||||||
Stewart Information Services Corp. | 6,984 | 305,899 | ||||||
Tiptree, Inc. | 6,742 | 112,996 | ||||||
Travelers Cos., Inc. (The) | 60,506 | 9,881,235 | ||||||
Trupanion, Inc.(a)(b) | 9,511 | 268,210 | ||||||
United Fire Group, Inc. | 5,904 | 116,604 | ||||||
Universal Insurance Holdings, Inc. | 9,109 | 127,708 | ||||||
Unum Group | 51,998 | 2,557,782 | ||||||
W R Berkley Corp. | 53,350 | 3,387,191 | ||||||
White Mountains Insurance Group Ltd.(b) | 639 | 955,746 | ||||||
Willis Towers Watson PLC | 27,485 | 5,743,266 | ||||||
|
| |||||||
252,340,322 | ||||||||
Interactive Media & Services — 5.2% | ||||||||
Alphabet, Inc., Class A(a) | 1,561,437 | 204,329,646 | ||||||
Alphabet, Inc., Class C, NVS(a) | 1,336,363 | 176,199,461 | ||||||
Bumble, Inc., Class A(a) | 22,954 | 342,474 | ||||||
Cargurus, Inc., Class A(a) | 25,466 | 446,164 | ||||||
Cars.com, Inc.(a) | 18,547 | 312,702 | ||||||
Eventbrite, Inc., Class A(a)(b) | 18,434 | 181,759 | ||||||
EverQuote, Inc., Class A(a) | 7,670 | 55,454 | ||||||
fuboTV, Inc.(a)(b) | 87,513 | 233,660 | ||||||
IAC, Inc.(a) | 20,170 | 1,016,366 | ||||||
Match Group, Inc.(a) | 73,554 | 2,881,478 | ||||||
MediaAlpha, Inc., Class A(a) | 7,470 | 61,702 | ||||||
Meta Platforms, Inc., Class A(a) | 581,188 | 174,478,449 | ||||||
Nextdoor Holdings, Inc., Class A(a) | 38,718 | 70,467 | ||||||
Outbrain, Inc.(a) | 3,811 | 18,560 | ||||||
Pinterest, Inc., Class A(a)(b) | 157,928 | 4,268,794 | ||||||
QuinStreet, Inc.(a) | 12,244 | 109,829 | ||||||
Shutterstock, Inc. | 5,959 | 226,740 | ||||||
TripAdvisor, Inc.(a)(b) | 27,336 | 453,231 | ||||||
Vimeo, Inc.(a) | 39,293 | 139,097 | ||||||
Yelp, Inc.(a) | 18,547 | 771,370 | ||||||
Ziff Davis, Inc.(a) | 12,917 | 822,684 | ||||||
ZipRecruiter, Inc., Class A(a) | 21,215 | 254,368 | ||||||
ZoomInfo Technologies, Inc., Class A(a) | 81,759 | 1,340,848 | ||||||
|
| |||||||
569,015,303 | ||||||||
IT Services — 1.4% | ||||||||
Accenture PLC, Class A | 166,022 | 50,987,016 | ||||||
Akamai Technologies, Inc.(a) | 40,231 | 4,286,211 | ||||||
Amdocs Ltd. | 31,763 | 2,683,656 | ||||||
BigCommerce Holdings, Inc., Series 1(a) | 19,671 | 194,153 | ||||||
Cloudflare, Inc., Class A(a)(b) | 75,067 | 4,732,224 | ||||||
Cognizant Technology Solutions Corp., Class A | 133,216 | 9,024,052 | ||||||
DigitalOcean Holdings, Inc.(a) | 17,461 | 419,588 | ||||||
DXC Technology Co.(a) | 54,900 | 1,143,567 | ||||||
EPAM Systems, Inc.(a) | 14,789 | 3,781,399 | ||||||
Fastly, Inc., Class A(a)(b) | 32,589 | 624,731 | ||||||
Gartner, Inc.(a) | 20,177 | 6,933,019 | ||||||
Globant SA(a) | 10,763 | 2,129,459 | ||||||
GoDaddy, Inc., Class A(a) | 40,904 | 3,046,530 | ||||||
Grid Dynamics Holdings, Inc., Class A(a) | 11,222 | 136,684 | ||||||
Hackett Group, Inc. (The) | 7,798 | 183,955 | ||||||
International Business Machines Corp. | 238,742 | 33,495,503 | ||||||
Kyndryl Holdings, Inc.(a) | 58,345 | 881,009 | ||||||
MongoDB, Inc., Class A(a) | 17,344 | 5,998,596 |
Security | Shares | Value | ||||||
IT Services (continued) | ||||||||
Okta, Inc., Class A(a) | 39,656 | $ | 3,232,361 | |||||
Perficient, Inc.(a) | 8,395 | 485,735 | ||||||
Snowflake, Inc., Class A(a) | 81,769 | 12,491,850 | ||||||
Squarespace, Inc., Class A(a) | 9,786 | 283,500 | ||||||
Thoughtworks Holding, Inc.(a)(b) | 28,541 | 116,447 | ||||||
Tucows, Inc., Class A(a)(b) | 2,700 | 55,107 | ||||||
Twilio, Inc., Class A(a) | 43,709 | 2,558,288 | ||||||
Unisys Corp.(a)(b) | 17,860 | 61,617 | ||||||
VeriSign, Inc.(a) | 23,731 | 4,806,239 | ||||||
|
| |||||||
154,772,496 | ||||||||
Leisure Products — 0.1% | ||||||||
Acushnet Holdings Corp. | 9,340 | 495,393 | ||||||
AMMO, Inc.(a)(b) | 36,292 | 73,310 | ||||||
Brunswick Corp. | 18,669 | 1,474,851 | ||||||
Funko, Inc., Class A(a) | 7,024 | 53,734 | ||||||
Hasbro, Inc. | 33,998 | 2,248,628 | ||||||
Johnson Outdoors, Inc., Class A | 1,468 | 80,285 | ||||||
Malibu Boats, Inc., Class A(a) | 5,036 | 246,865 | ||||||
MasterCraft Boat Holdings, Inc.(a) | 5,172 | 114,922 | ||||||
Mattel, Inc.(a)(b) | 95,164 | 2,096,463 | ||||||
Peloton Interactive, Inc., Class A(a)(b) | 77,852 | 393,152 | ||||||
Polaris, Inc. | 14,416 | 1,501,282 | ||||||
Smith & Wesson Brands, Inc. | 14,841 | 191,597 | ||||||
Sturm Ruger & Co., Inc. | 4,084 | 212,858 | ||||||
Topgolf Callaway Brands Corp.(a) | 37,663 | 521,256 | ||||||
Vista Outdoor, Inc.(a)(b) | 15,660 | 518,659 | ||||||
YETI Holdings, Inc.(a)(b) | 22,386 | 1,079,453 | ||||||
|
| |||||||
11,302,708 | ||||||||
Life Sciences Tools & Services — 1.5% | ||||||||
10X Genomics, Inc., Class A(a) | 23,439 | 966,859 | ||||||
Adaptive Biotechnologies Corp.(a) | 29,104 | 158,617 | ||||||
Agilent Technologies, Inc. | 77,834 | 8,703,398 | ||||||
Avantor, Inc.(a)(b) | 176,876 | 3,728,546 | ||||||
Azenta, Inc.(a) | 16,523 | 829,289 | ||||||
BioLife Solutions, Inc.(a) | 9,431 | 130,242 | ||||||
Bio-Rad Laboratories, Inc., Class A(a) | 5,700 | 2,043,165 | ||||||
Bio-Techne Corp. | 41,430 | 2,820,140 | ||||||
Bruker Corp. | 28,680 | 1,786,764 | ||||||
Charles River Laboratories International, Inc.(a)(b) | 13,053 | 2,558,127 | ||||||
Codexis, Inc.(a) | 16,458 | 31,106 | ||||||
CryoPort, Inc.(a) | 9,985 | 136,894 | ||||||
Cytek Biosciences, Inc.(a) | 27,550 | 152,076 | ||||||
Danaher Corp. | 172,934 | 42,904,925 | ||||||
Fortrea Holdings, Inc.(a) | 23,302 | 666,204 | ||||||
ICON PLC(a) | 21,366 | 5,261,378 | ||||||
Illumina, Inc.(a) | 41,838 | 5,743,521 | ||||||
IQVIA Holdings, Inc.(a)(b) | 48,248 | 9,492,794 | ||||||
Maravai LifeSciences Holdings, Inc., Class A(a) | 29,501 | 295,010 | ||||||
MaxCyte, Inc.(a) | 24,792 | 77,351 | ||||||
Medpace Holdings, Inc.(a) | 6,023 | 1,458,349 | ||||||
Mesa Laboratories, Inc. | 1,361 | 143,000 | ||||||
Mettler-Toledo International, Inc.(a) | 5,711 | 6,328,188 | ||||||
NanoString Technologies, Inc.(a)(b) | 11,739 | 20,191 | ||||||
OmniAb, Inc.(a)(b) | 18,893 | 98,055 | ||||||
OmniAb, Inc., 12.50 Earnout Shares(a)(d) | 1,502 | — | ||||||
OmniAb, Inc., 15.00 Earnout Shares(a)(d) | 1,502 | — | ||||||
Pacific Biosciences of California, Inc.(a)(b) | 66,975 | 559,241 | ||||||
QIAGEN NV(a) | 60,353 | 2,444,297 | ||||||
Quanterix Corp.(a) | 12,132 | 329,263 | ||||||
Quantum-Si, Inc., Class A(a)(b) | 34,590 | 57,419 | ||||||
Repligen Corp.(a)(b) | 14,473 | 2,301,352 | ||||||
Revvity, Inc. | 32,819 | 3,633,063 |
SCHEDULES OF INVESTMENTS | 21 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Life Sciences Tools & Services (continued) | ||||||||
Seer, Inc., Class A(a) | 18,611 | $ | 41,130 | |||||
SomaLogic, Inc., Class A(a) | 59,015 | 141,046 | ||||||
Sotera Health Co.(a)(b) | 25,859 | 387,368 | ||||||
Thermo Fisher Scientific, Inc. | 101,366 | 51,308,428 | ||||||
Waters Corp.(a)(b) | 15,297 | 4,194,590 | ||||||
West Pharmaceutical Services, Inc. | 19,392 | 7,276,072 | ||||||
|
| |||||||
169,207,458 | ||||||||
Machinery — 2.0% | ||||||||
3D Systems Corp.(a) | 30,695 | 150,712 | ||||||
AGCO Corp. | 16,162 | 1,911,641 | ||||||
Alamo Group, Inc. | 2,361 | 408,122 | ||||||
Albany International Corp., Class A | 7,882 | 680,059 | ||||||
Allison Transmission Holdings, Inc. | 24,243 | 1,431,792 | ||||||
Astec Industries, Inc. | 5,903 | 278,090 | ||||||
Barnes Group, Inc. | 12,244 | 415,929 | ||||||
Blue Bird Corp.(a)(b) | 5,343 | 114,073 | ||||||
Caterpillar, Inc. | 135,692 | 37,043,916 | ||||||
Chart Industries, Inc.(a)(b) | 11,129 | 1,882,136 | ||||||
CIRCOR International, Inc.(a) | 4,610 | 257,008 | ||||||
CNH Industrial NV | 256,211 | 3,100,153 | ||||||
Columbus McKinnon Corp. | 6,539 | 228,276 | ||||||
Commercial Vehicle Group, Inc.(a) | 10,992 | 85,298 | ||||||
Crane Co.(b) | 12,483 | 1,108,990 | ||||||
Cummins, Inc. | 37,353 | 8,533,666 | ||||||
Deere & Co. | 70,873 | 26,746,053 | ||||||
Desktop Metal, Inc., Class A(a)(b) | 61,860 | 90,316 | ||||||
Donaldson Co., Inc. | 32,268 | 1,924,464 | ||||||
Douglas Dynamics, Inc. | 5,406 | 163,153 | ||||||
Dover Corp. | 36,819 | 5,136,619 | ||||||
Energy Recovery, Inc.(a) | 14,703 | 311,851 | ||||||
Enerpac Tool Group Corp., Class A | 15,673 | 414,237 | ||||||
EnPro Industries, Inc. | 5,075 | 615,039 | ||||||
Esab Corp. | 14,933 | 1,048,595 | ||||||
ESCO Technologies, Inc. | 6,547 | 683,769 | ||||||
Federal Signal Corp. | 15,093 | 901,505 | ||||||
Flowserve Corp. | 35,124 | 1,396,881 | ||||||
Fortive Corp. | 92,963 | 6,894,136 | ||||||
Franklin Electric Co., Inc. | 11,641 | 1,038,726 | ||||||
Gates Industrial Corp. PLC(a) | 31,685 | 367,863 | ||||||
Gorman-Rupp Co. (The) | 4,693 | 154,400 | ||||||
Graco, Inc. | 43,748 | 3,188,354 | ||||||
Greenbrier Cos., Inc. (The) | 8,275 | 331,000 | ||||||
Helios Technologies, Inc. | 8,047 | 446,448 | ||||||
Hillenbrand, Inc. | 18,734 | 792,636 | ||||||
Hillman Solutions Corp.(a) | 45,869 | 378,419 | ||||||
Hyliion Holdings Corp., Class A(a)(b) | 54,029 | 63,754 | ||||||
Hyster-Yale Materials Handling, Inc., Class A | 2,654 | 118,315 | ||||||
IDEX Corp. | 19,881 | 4,135,646 | ||||||
Illinois Tool Works, Inc. | 79,557 | 18,322,773 | ||||||
Ingersoll Rand, Inc. | 105,848 | 6,744,635 | ||||||
ITT, Inc. | 21,767 | 2,131,207 | ||||||
John Bean Technologies Corp. | 8,529 | 896,739 | ||||||
Kadant, Inc.(b) | 2,796 | 630,638 | ||||||
Kennametal, Inc. | 21,892 | 544,673 | ||||||
Lincoln Electric Holdings, Inc. | 14,752 | 2,681,766 | ||||||
Lindsay Corp. | 3,072 | 361,513 | ||||||
Luxfer Holdings PLC | 7,184 | 93,751 | ||||||
Manitowoc Co., Inc. (The)(a) | 9,094 | 136,865 | ||||||
Microvast Holdings, Inc.(a)(b) | 53,693 | 101,480 | ||||||
Middleby Corp. (The)(a) | 14,227 | 1,821,056 | ||||||
Miller Industries, Inc. | 3,015 | 118,218 | ||||||
Mueller Industries, Inc. | 15,277 | 1,148,219 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Mueller Water Products, Inc., Class A | 44,989 | $ | 570,461 | |||||
Nikola Corp.(a)(b) | 158,098 | 248,214 | ||||||
Nordson Corp. | 15,271 | 3,408,029 | ||||||
Omega Flex, Inc. | 1,077 | 84,792 | ||||||
Oshkosh Corp. | 17,672 | 1,686,439 | ||||||
Otis Worldwide Corp. | 108,407 | 8,706,166 | ||||||
PACCAR, Inc. | 134,933 | 11,472,004 | ||||||
Parker-Hannifin Corp. | 33,641 | 13,103,842 | ||||||
Pentair PLC | 43,632 | 2,825,172 | ||||||
Proto Labs, Inc.(a) | 7,046 | 186,014 | ||||||
RBC Bearings, Inc.(a)(b) | 7,207 | 1,687,375 | ||||||
REV Group, Inc. | 9,286 | 148,576 | ||||||
Shyft Group, Inc. (The) | 8,797 | 131,691 | ||||||
Snap-on, Inc. | 13,691 | 3,492,026 | ||||||
SPX Technologies, Inc.(a) | 12,142 | 988,359 | ||||||
Standex International Corp. | 3,067 | 446,831 | ||||||
Stanley Black & Decker, Inc. | 40,279 | 3,366,519 | ||||||
Tennant Co. | 4,571 | 338,940 | ||||||
Terex Corp. | 17,747 | 1,022,582 | ||||||
Timken Co. (The) | 16,485 | 1,211,483 | ||||||
Titan International, Inc.(a) | 11,043 | 148,307 | ||||||
Toro Co. (The) | 27,615 | 2,294,806 | ||||||
Trinity Industries, Inc. | 19,918 | 485,003 | ||||||
Wabash National Corp. | 12,406 | 262,015 | ||||||
Watts Water Technologies, Inc., Class A | 6,930 | 1,197,643 | ||||||
Westinghouse Air Brake Technologies Corp. | 46,684 | 4,961,109 | ||||||
Xylem, Inc. | 62,488 | 5,688,283 | ||||||
|
| |||||||
220,868,254 | ||||||||
Marine Transportation — 0.0% | ||||||||
Costamare, Inc. | 17,793 | 171,169 | ||||||
Eagle Bulk Shipping, Inc. | 2,976 | 125,081 | ||||||
Genco Shipping & Trading Ltd. | 8,942 | 125,099 | ||||||
Golden Ocean Group Ltd. | 29,809 | 234,895 | ||||||
Kirby Corp.(a) | 15,476 | 1,281,413 | ||||||
Matson, Inc. | 9,263 | 821,813 | ||||||
Safe Bulkers, Inc. | 36,110 | 116,996 | ||||||
|
| |||||||
2,876,466 | ||||||||
Media — 0.9% | ||||||||
AMC Networks, Inc., Class A(a) | 7,545 | 88,880 | ||||||
Boston Omaha Corp., Class A(a) | 4,891 | 80,164 | ||||||
Cable One, Inc. | 1,427 | 878,518 | ||||||
Cardlytics, Inc.(a)(b) | 12,122 | 200,013 | ||||||
Charter Communications, Inc., Class A(a)(b) | 26,889 | 11,826,320 | ||||||
Clear Channel Outdoor Holdings, Inc.(a)(b) | 97,494 | 154,041 | ||||||
Comcast Corp., Class A | 1,075,105 | 47,670,156 | ||||||
Daily Journal Corp.(a) | 396 | 116,424 | ||||||
DISH Network Corp., Class A(a)(b) | 65,736 | 385,213 | ||||||
Entravision Communications Corp., Class A | 23,150 | 84,498 | ||||||
EW Scripps Co. (The), Class A, NVS(a) | 13,530 | 74,144 | ||||||
Fox Corp., Class A, NVS | 69,857 | 2,179,538 | ||||||
Fox Corp., Class B | 36,587 | 1,056,633 | ||||||
Gannett Co., Inc.(a)(b) | 59,801 | 146,512 | ||||||
Gray Television, Inc. | 21,245 | 147,015 | ||||||
iHeartMedia, Inc., Class A(a) | 27,991 | 88,452 | ||||||
Integral Ad Science Holding Corp.(a) | 9,976 | 118,615 | ||||||
Interpublic Group of Cos., Inc. (The) | 99,280 | 2,845,365 | ||||||
John Wiley & Sons, Inc., Class A | 12,170 | 452,359 | ||||||
Liberty Broadband Corp., Class A(a) | 4,062 | 369,276 | ||||||
Liberty Broadband Corp., Class C, NVS(a) | 30,957 | 2,826,993 | ||||||
Liberty Media Corp. - Liberty SiriusXM, NVS(a) | 39,833 | 1,014,148 | ||||||
Liberty Media Corp. - Liberty SiriusXM, Class A(a) | 18,691 | 475,686 | ||||||
Magnite, Inc.(a)(b) | 33,580 | 253,193 |
22 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
New York Times Co. (The), Class A | 43,132 | $ | 1,777,038 | |||||
News Corp., Class A, NVS | 96,981 | 1,945,439 | ||||||
News Corp., Class B | 31,116 | 649,391 | ||||||
Nexstar Media Group, Inc., Class A | 8,967 | 1,285,599 | ||||||
Omnicom Group, Inc. | 52,346 | 3,898,730 | ||||||
Paramount Global, Class A(b) | 4,129 | 65,197 | ||||||
Paramount Global, Class B, NVS | 150,956 | 1,947,332 | ||||||
PubMatic, Inc., Class A(a)(b) | 11,228 | 135,859 | ||||||
Scholastic Corp., NVS | 6,853 | 261,373 | ||||||
Sinclair, Inc., Class A | 11,761 | 131,958 | ||||||
Sirius XM Holdings, Inc.(b) | 165,427 | 747,730 | ||||||
Stagwell, Inc., Class A(a) | 33,523 | 157,223 | ||||||
TechTarget, Inc.(a) | 7,289 | 221,294 | ||||||
TEGNA, Inc. | 55,187 | 804,075 | ||||||
Thryv Holdings, Inc.(a) | 6,579 | 123,488 | ||||||
Trade Desk, Inc. (The), Class A(a) | 116,277 | 9,087,048 | ||||||
WideOpenWest, Inc.(a)(b) | 14,665 | 112,187 | ||||||
|
| |||||||
96,883,117 | ||||||||
Metals & Mining — 0.6% | ||||||||
5E Advanced Materials, Inc.(a)(b) | 10,695 | 24,171 | ||||||
Alcoa Corp. | 48,053 | 1,396,420 | ||||||
Alpha Metallurgical Resources, Inc. | 3,370 | 875,290 | ||||||
Arch Resources, Inc., Class A | 4,933 | 841,866 | ||||||
ATI, Inc.(a)(b) | 32,459 | 1,335,688 | ||||||
Caledonia Mining Corp. PLC | 9,926 | 97,870 | ||||||
Carpenter Technology Corp. | 13,216 | 888,247 | ||||||
Century Aluminum Co.(a)(b) | 15,107 | 108,619 | ||||||
Cleveland-Cliffs, Inc.(a) | 134,979 | 2,109,722 | ||||||
Coeur Mining, Inc.(a) | 63,987 | 142,051 | ||||||
Commercial Metals Co. | 31,333 | 1,548,164 | ||||||
Compass Minerals International, Inc. | 8,898 | 248,699 | ||||||
Constellium SE(a) | 30,122 | 548,220 | ||||||
Freeport-McMoRan, Inc. | 376,221 | 14,029,281 | ||||||
Haynes International, Inc. | 3,707 | 172,450 | ||||||
Hecla Mining Co. | 165,406 | 646,737 | ||||||
i-80 Gold Corp.(a)(b) | 50,631 | 77,465 | ||||||
Ivanhoe Electric, Inc.(a)(b) | 12,136 | 144,418 | ||||||
Kaiser Aluminum Corp. | 4,295 | 323,242 | ||||||
Materion Corp. | 4,950 | 504,455 | ||||||
MP Materials Corp., Class A(a)(b) | 28,625 | 546,738 | ||||||
Newmont Corp. | 209,871 | 7,754,733 | ||||||
Novagold Resources, Inc.(a) | 64,730 | 248,563 | ||||||
Nucor Corp. | 66,000 | 10,319,100 | ||||||
Olympic Steel, Inc. | 2,498 | 140,413 | ||||||
Piedmont Lithium, Inc.(a)(b) | 4,823 | 191,473 | ||||||
Reliance Steel & Aluminum Co. | 15,239 | 3,996,123 | ||||||
Royal Gold, Inc. | 17,698 | 1,881,828 | ||||||
Ryerson Holding Corp. | 4,950 | 143,996 | ||||||
Schnitzer Steel Industries, Inc., Class A | 6,168 | 171,779 | ||||||
Southern Copper Corp. | 21,889 | 1,648,023 | ||||||
SSR Mining, Inc. | 52,502 | 697,752 | ||||||
Steel Dynamics, Inc. | 42,114 | 4,515,463 | ||||||
SunCoke Energy, Inc. | 26,008 | 263,981 | ||||||
TimkenSteel Corp.(a) | 9,931 | 215,701 | ||||||
Tredegar Corp. | 11,274 | 60,992 | ||||||
United States Steel Corp. | 58,579 | 1,902,646 | ||||||
Warrior Met Coal, Inc. | 12,346 | 630,634 | ||||||
Worthington Industries, Inc. | 7,704 | 476,261 | ||||||
|
| |||||||
61,869,274 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.1% | ||||||||
AFC Gamma, Inc. | 6,398 | 75,112 | ||||||
AGNC Investment Corp. | 160,973 | 1,519,585 |
Security | Shares | Value | ||||||
Mortgage Real Estate Investment Trusts (REITs) (continued) | ||||||||
Annaly Capital Management, Inc. | 129,401 | $ | 2,434,033 | |||||
Apollo Commercial Real Estate Finance, Inc. | 40,669 | 411,977 | ||||||
Arbor Realty Trust, Inc. | 41,214 | 625,629 | ||||||
Ares Commercial Real Estate Corp. | 10,975 | 104,482 | ||||||
ARMOUR Residential REIT, Inc. | 48,494 | 206,100 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 47,080 | 1,023,990 | ||||||
BrightSpire Capital, Inc., Class A | 40,190 | 251,589 | ||||||
Chicago Atlantic Real Estate Finance, Inc. | 7,383 | 108,678 | ||||||
Chimera Investment Corp. | 59,439 | 324,537 | ||||||
Claros Mortgage Trust, Inc. | 23,217 | 257,244 | ||||||
Dynex Capital, Inc. | 17,359 | 207,266 | ||||||
Ellington Financial, Inc. | 13,591 | 169,480 | ||||||
Franklin BSP Realty Trust, Inc. | 21,733 | 287,745 | ||||||
Granite Point Mortgage Trust, Inc. | 15,826 | 77,231 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(b) | 26,151 | 554,401 | ||||||
Invesco Mortgage Capital, Inc. | 8,594 | 86,026 | ||||||
KKR Real Estate Finance Trust, Inc. | 15,776 | 187,261 | ||||||
Ladder Capital Corp., Class A | 27,697 | 284,171 | ||||||
MFA Financial, Inc. | 29,486 | 283,360 | ||||||
New York Mortgage Trust, Inc. | 24,156 | 205,084 | ||||||
Orchid Island Capital, Inc. | 11,782 | 100,265 | ||||||
PennyMac Mortgage Investment Trust | 23,489 | 291,264 | ||||||
Ready Capital Corp. | 38,224 | 386,445 | ||||||
Redwood Trust, Inc. | 31,289 | 223,091 | ||||||
Rithm Capital Corp. | 126,256 | 1,172,918 | ||||||
Starwood Property Trust, Inc. | 75,394 | 1,458,874 | ||||||
TPG RE Finance Trust, Inc. | 14,739 | 99,193 | ||||||
Two Harbors Investment Corp. | 23,776 | 314,794 | ||||||
|
| |||||||
13,731,825 | ||||||||
Multi-Utilities — 0.6% | ||||||||
Ameren Corp. | 69,158 | 5,175,093 | ||||||
Avista Corp. | 18,236 | 590,299 | ||||||
Black Hills Corp. | 17,381 | 879,305 | ||||||
CenterPoint Energy, Inc. | 164,867 | 4,426,679 | ||||||
CMS Energy Corp. | 76,704 | 4,073,749 | ||||||
Consolidated Edison, Inc. | 90,994 | 7,782,717 | ||||||
Dominion Energy, Inc. | 219,588 | 9,808,996 | ||||||
DTE Energy Co. | 54,021 | 5,363,205 | ||||||
NiSource, Inc. | 109,691 | 2,707,174 | ||||||
Northwestern Energy Group, Inc. | 15,351 | 737,769 | ||||||
Public Service Enterprise Group, Inc. | 129,693 | 7,380,829 | ||||||
Sempra | 166,143 | 11,302,708 | ||||||
Unitil Corp. | 3,381 | 144,403 | ||||||
WEC Energy Group, Inc. | 82,977 | 6,683,797 | ||||||
|
| |||||||
67,056,723 | ||||||||
Office REITs — 0.1% | ||||||||
Alexandria Real Estate Equities, Inc. | 45,295 | 4,534,030 | ||||||
Boston Properties, Inc. | 41,211 | 2,451,230 | ||||||
Brandywine Realty Trust | 50,314 | 228,426 | ||||||
City Office REIT, Inc. | 12,833 | 54,540 | ||||||
COPT Defense Properties | 29,434 | 701,412 | ||||||
Cousins Properties, Inc. | 39,362 | 801,804 | ||||||
Douglas Emmett, Inc. | 44,532 | 568,228 | ||||||
Easterly Government Properties, Inc. | 25,244 | 288,539 | ||||||
Equity Commonwealth | 27,618 | 507,343 | ||||||
Highwoods Properties, Inc. | 26,788 | 552,101 | ||||||
Hudson Pacific Properties, Inc. | 40,333 | 268,214 | ||||||
JBG SMITH Properties | 27,945 | 404,085 | ||||||
Kilroy Realty Corp. | 30,702 | 970,490 | ||||||
Office Properties Income Trust | 12,574 | 51,553 | ||||||
Orion Office REIT, Inc. | 14,252 | 74,253 |
SCHEDULES OF INVESTMENTS | 23 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Office REITs (continued) | ||||||||
Paramount Group, Inc. | 46,445 | $ | 214,576 | |||||
Peakstone Realty Trust, Class E(b) | 7,228 | 120,274 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 33,554 | 188,573 | ||||||
Postal Realty Trust, Inc., Class A | 3,822 | 51,597 | ||||||
SL Green Realty Corp.(b) | 16,914 | 630,892 | ||||||
Vornado Realty Trust | 46,814 | 1,061,742 | ||||||
|
| |||||||
14,723,902 | ||||||||
Oil, Gas & Consumable Fuels — 4.2% | ||||||||
Amplify Energy Corp.(a) | 12,365 | 90,883 | ||||||
Antero Midstream Corp. | 88,017 | 1,054,444 | ||||||
Antero Resources Corp.(a) | 76,210 | 1,934,210 | ||||||
APA Corp. | 81,332 | 3,342,745 | ||||||
Ardmore Shipping Corp. | 13,158 | 171,186 | ||||||
Berry Corp. | 22,741 | 186,476 | ||||||
California Resources Corp. | 19,220 | 1,076,512 | ||||||
Callon Petroleum Co.(a) | 16,045 | 627,680 | ||||||
Centrus Energy Corp., Class A(a) | 3,200 | 181,632 | ||||||
Cheniere Energy, Inc. | 63,589 | 10,553,230 | ||||||
Chesapeake Energy Corp. | 33,253 | 2,867,406 | ||||||
Chevron Corp. | 464,909 | 78,392,956 | ||||||
Chord Energy Corp. | 11,079 | 1,795,574 | ||||||
Civitas Resources, Inc. | 17,766 | 1,436,736 | ||||||
Clean Energy Fuels Corp.(a)(b) | 41,365 | 158,428 | ||||||
CNX Resources Corp.(a)(b) | 44,054 | 994,739 | ||||||
Comstock Resources, Inc. | 22,164 | 244,469 | ||||||
ConocoPhillips | 318,588 | 38,166,842 | ||||||
CONSOL Energy, Inc. | 9,488 | 995,386 | ||||||
Coterra Energy, Inc. | 194,268 | 5,254,949 | ||||||
Crescent Energy Co., Class A | 9,888 | 124,984 | ||||||
CVR Energy, Inc. | 7,459 | 253,830 | ||||||
Delek U.S. Holdings, Inc. | 18,963 | 538,739 | ||||||
Denbury, Inc.(a) | 13,727 | 1,345,383 | ||||||
Devon Energy Corp. | 168,075 | 8,017,178 | ||||||
DHT Holdings, Inc. | 30,961 | 318,898 | ||||||
Diamondback Energy, Inc. | 47,963 | 7,428,509 | ||||||
Dorian LPG Ltd. | 9,351 | 268,654 | ||||||
DT Midstream, Inc. | 24,816 | 1,313,263 | ||||||
Earthstone Energy, Inc., Class A(a) | 17,032 | 344,728 | ||||||
Encore Energy Corp.(a) | 43,036 | 140,297 | ||||||
Energy Fuels, Inc.(a)(b) | 39,216 | 322,356 | ||||||
Enviva, Inc. | 7,768 | 58,027 | ||||||
EOG Resources, Inc. | 154,211 | 19,547,786 | ||||||
EQT Corp.(b) | 94,504 | 3,834,972 | ||||||
Equitrans Midstream Corp. | 110,525 | 1,035,619 | ||||||
Evolution Petroleum Corp. | 13,908 | 95,131 | ||||||
Excelerate Energy, Inc., Class A | 4,819 | 82,116 | ||||||
Exxon Mobil Corp. | 1,052,525 | 123,755,890 | ||||||
FLEX LNG Ltd. | 7,165 | 216,096 | ||||||
Gevo, Inc.(a)(b) | 52,611 | 62,607 | ||||||
Golar LNG Ltd. | 24,968 | 605,724 | ||||||
Green Plains, Inc.(a) | 9,494 | 285,769 | ||||||
Gulfport Energy Corp.(a) | 2,917 | 346,131 | ||||||
Hallador Energy Co.(a)(b) | 10,002 | 144,229 | ||||||
Hess Corp. | 72,853 | 11,146,509 | ||||||
HF Sinclair Corp. | 37,901 | 2,157,704 | ||||||
International Seaways, Inc. | 10,574 | 475,830 | ||||||
Kinder Morgan, Inc. | 514,355 | 8,528,006 | ||||||
Kinetik Holdings, Inc., Class A | 4,853 | 163,789 | ||||||
Kosmos Energy Ltd.(a)(b) | 122,828 | 1,004,733 | ||||||
Magnolia Oil & Gas Corp., Class A | 47,792 | 1,094,915 | ||||||
Marathon Oil Corp. | 161,609 | 4,323,041 | ||||||
Marathon Petroleum Corp. | 111,815 | 16,922,082 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Matador Resources Co. | 29,687 | $ | 1,765,783 | |||||
Murphy Oil Corp. | 37,581 | 1,704,298 | ||||||
New Fortress Energy, Inc., Class A | 15,014 | 492,159 | ||||||
NextDecade Corp.(a)(b) | 13,887 | 71,101 | ||||||
Nordic American Tankers Ltd. | 50,950 | 209,914 | ||||||
Northern Oil & Gas, Inc. | 20,710 | 833,163 | ||||||
Occidental Petroleum Corp. | 182,964 | 11,870,704 | ||||||
ONEOK, Inc. | 117,452 | 7,449,980 | ||||||
Overseas Shipholding Group, Inc., Class A(a) | 26,634 | 116,923 | ||||||
Ovintiv, Inc. | 67,635 | 3,217,397 | ||||||
Par Pacific Holdings, Inc.(a) | 15,972 | 574,034 | ||||||
PBF Energy, Inc., Class A | 31,015 | 1,660,233 | ||||||
Peabody Energy Corp. | 30,189 | 784,612 | ||||||
Permian Resources Corp., Class A | 69,444 | 969,438 | ||||||
PetroCorp Escrow(a)(d) | 1,248 | — | ||||||
Phillips 66 | 120,858 | 14,521,089 | ||||||
Pioneer Natural Resources Co. | 61,050 | 14,014,028 | ||||||
Range Resources Corp. | 61,646 | 1,997,947 | ||||||
REX American Resources Corp.(a) | 4,544 | 185,032 | ||||||
Riley Exploration Permian, Inc. | 3,266 | 103,826 | ||||||
Ring Energy, Inc.(a)(b) | 49,458 | 96,443 | ||||||
Scorpio Tankers, Inc. | 12,652 | 684,726 | ||||||
SFL Corp. Ltd. | 35,449 | 395,256 | ||||||
SilverBow Resources, Inc.(a)(b) | 3,057 | 109,349 | ||||||
Sitio Royalties Corp., Class A | 18,929 | 458,271 | ||||||
SM Energy Co. | 31,528 | 1,250,085 | ||||||
Southwestern Energy Co.(a) | 292,375 | 1,885,819 | ||||||
Talos Energy, Inc.(a)(b) | 29,065 | 477,829 | ||||||
Targa Resources Corp. | 58,480 | 5,012,906 | ||||||
Teekay Corp.(a) | 21,734 | 134,099 | ||||||
Teekay Tankers Ltd., Class A | 6,336 | 263,768 | ||||||
Tellurian, Inc.(a)(b) | 137,899 | 159,963 | ||||||
Texas Pacific Land Corp.(b) | 1,533 | 2,795,518 | ||||||
Uranium Energy Corp.(a)(b) | 85,746 | 441,592 | ||||||
VAALCO Energy, Inc. | 27,589 | 121,116 | ||||||
Valero Energy Corp. | 92,835 | 13,155,648 | ||||||
Vertex Energy, Inc.(a) | 15,640 | 69,598 | ||||||
Vital Energy, Inc.(a) | 4,620 | 256,040 | ||||||
Vitesse Energy, Inc. | 6,295 | 144,093 | ||||||
W&T Offshore, Inc.(a) | 32,789 | 143,616 | ||||||
Williams Cos., Inc. (The) | 318,586 | 10,733,162 | ||||||
World Kinect Corp. | 17,512 | 392,794 | ||||||
|
| |||||||
467,553,360 | ||||||||
Paper & Forest Products — 0.0% | ||||||||
Clearwater Paper Corp.(a) | 4,468 | 161,965 | ||||||
Louisiana-Pacific Corp. | 18,142 | 1,002,709 | ||||||
Sylvamo Corp. | 9,279 | 407,719 | ||||||
|
| |||||||
1,572,393 | ||||||||
Passenger Airlines — 0.2% | ||||||||
Alaska Air Group, Inc.(a) | 32,242 | 1,195,533 | ||||||
Allegiant Travel Co. | 3,627 | 278,771 | ||||||
American Airlines Group, Inc.(a) | 172,479 | 2,209,456 | ||||||
Blade Air Mobility, Inc., Class A(a) | 23,155 | 59,971 | ||||||
Delta Air Lines, Inc. | 168,562 | 6,236,794 | ||||||
Frontier Group Holdings, Inc.(a)(b) | 9,701 | 46,953 | ||||||
Hawaiian Holdings, Inc.(a)(b) | 14,051 | 88,943 | ||||||
JetBlue Airways Corp.(a) | 81,466 | 374,744 | ||||||
Joby Aviation, Inc.(a)(b) | 69,008 | 445,102 | ||||||
SkyWest, Inc.(a) | 11,225 | 470,776 | ||||||
Southwest Airlines Co. | 155,063 | 4,197,555 | ||||||
Spirit Airlines, Inc. | 26,304 | 434,016 |
24 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Passenger Airlines (continued) | ||||||||
Sun Country Airlines Holdings, Inc.(a) | 11,965 | $ | 177,561 | |||||
United Airlines Holdings, Inc.(a) | 85,366 | 3,610,982 | ||||||
|
| |||||||
19,827,157 | ||||||||
Personal Care Products — 0.2% | ||||||||
Beauty Health Co. (The), Class A(a)(b) | 23,863 | 143,655 | ||||||
BellRing Brands, Inc.(a) | 35,105 | 1,447,379 | ||||||
Coty, Inc., Class A(a) | 97,696 | 1,071,725 | ||||||
Edgewell Personal Care Co. | 14,955 | 552,737 | ||||||
elf Beauty, Inc.(a) | 14,154 | 1,554,534 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 60,580 | 8,756,839 | ||||||
Herbalife Ltd.(a)(b) | 28,026 | 392,084 | ||||||
Inter Parfums, Inc. | 4,972 | 667,938 | ||||||
Kenvue, Inc. | 457,395 | 9,184,492 | ||||||
Medifast, Inc. | 3,152 | 235,927 | ||||||
Nu Skin Enterprises, Inc., Class A | 11,733 | 248,857 | ||||||
Olaplex Holdings, Inc.(a) | 34,167 | 66,626 | ||||||
USANA Health Sciences, Inc.(a) | 3,576 | 209,589 | ||||||
|
| |||||||
24,532,382 | ||||||||
Pharmaceuticals — 3.7% | ||||||||
Aclaris Therapeutics, Inc.(a) | 17,662 | 120,985 | ||||||
Amneal Pharmaceuticals, Inc., Class A(a) | 27,879 | 117,649 | ||||||
Amphastar Pharmaceuticals, Inc.(a) | 10,344 | 475,721 | ||||||
Amylyx Pharmaceuticals, Inc.(a) | 13,497 | 247,130 | ||||||
ANI Pharmaceuticals, Inc.(a) | 3,152 | 183,005 | ||||||
Arvinas, Inc.(a) | 11,505 | 225,958 | ||||||
Assertio Holdings, Inc.(a)(b) | 17,705 | 45,325 | ||||||
Atea Pharmaceuticals, Inc.(a) | 18,017 | 54,051 | ||||||
Axsome Therapeutics, Inc.(a)(b) | 9,854 | 688,696 | ||||||
Bristol-Myers Squibb Co. | 552,349 | 32,058,336 | ||||||
Cara Therapeutics, Inc.(a) | 12,183 | 20,467 | ||||||
Cassava Sciences, Inc.(a)(b) | 9,858 | 164,037 | ||||||
Catalent, Inc.(a) | 46,871 | 2,134,037 | ||||||
Collegium Pharmaceutical, Inc.(a) | 9,336 | 208,660 | ||||||
Corcept Therapeutics, Inc.(a) | 22,751 | 619,851 | ||||||
CorMedix, Inc.(a) | 22,156 | 81,977 | ||||||
Cymabay Therapeutics, Inc.(a)(b) | 25,481 | 379,922 | ||||||
Edgewise Therapeutics, Inc.(a)(b) | 12,365 | 70,851 | ||||||
Elanco Animal Health, Inc.(a) | 128,428 | 1,443,531 | ||||||
Eli Lilly & Co. | 222,364 | 119,438,375 | ||||||
Enliven Therapeutics, Inc.(a)(b) | 6,063 | 82,821 | ||||||
Evolus, Inc.(a)(b) | 11,426 | 104,434 | ||||||
EyePoint Pharmaceuticals, Inc.(a)(b) | 11,118 | 88,833 | ||||||
Harmony Biosciences Holdings, Inc.(a)(b) | 7,305 | 239,385 | ||||||
Harrow, Inc.(a) | 6,754 | 97,055 | ||||||
Innoviva, Inc.(a)(b) | 18,320 | 237,977 | ||||||
Intra-Cellular Therapies, Inc.(a)(b) | 24,122 | 1,256,515 | ||||||
Jazz Pharmaceuticals PLC(a) | 16,266 | 2,105,471 | ||||||
Johnson & Johnson | 633,245 | 98,627,909 | ||||||
Ligand Pharmaceuticals, Inc.(a) | 3,863 | 231,471 | ||||||
Liquidia Corp.(a) | 8,684 | 55,057 | ||||||
Marinus Pharmaceuticals, Inc.(a) | 12,943 | 104,191 | ||||||
Merck & Co., Inc. | 667,412 | 68,710,065 | ||||||
NGM Biopharmaceuticals, Inc.(a) | 20,227 | 21,643 | ||||||
Nuvation Bio, Inc., Class A(a) | 45,959 | 61,585 | ||||||
Ocular Therapeutix, Inc.(a)(b) | 26,899 | 84,463 | ||||||
Omeros Corp.(a) | 19,193 | 56,044 | ||||||
Organon & Co. | 67,492 | 1,171,661 | ||||||
Pacira BioSciences, Inc.(a) | 11,682 | 358,404 | ||||||
Perrigo Co. PLC | 36,531 | 1,167,165 | ||||||
Pfizer, Inc. | 1,484,648 | 49,245,774 | ||||||
Phathom Pharmaceuticals, Inc.(a)(b) | 9,028 | 93,620 | ||||||
Phibro Animal Health Corp., Class A | 3,775 | 48,207 |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Pliant Therapeutics, Inc.(a) | 14,678 | $ | 254,516 | |||||
Prestige Consumer Healthcare, Inc.(a) | 13,479 | 770,864 | ||||||
Revance Therapeutics, Inc.(a) | 22,025 | 252,627 | ||||||
Royalty Pharma PLC, Class A | 96,698 | 2,624,384 | ||||||
Scilex Holding Co. (Acquired 01/13/23, Cost $96,475)(a)(e) | 19,104 | 26,277 | ||||||
scPharmaceuticals, Inc.(a) | 10,770 | 76,682 | ||||||
SIGA Technologies, Inc. | 11,988 | 62,937 | ||||||
Supernus Pharmaceuticals, Inc.(a) | 12,962 | 357,362 | ||||||
Taro Pharmaceutical Industries Ltd.(a) | 2,763 | 104,193 | ||||||
Tarsus Pharmaceuticals, Inc.(a) | 3,064 | 54,447 | ||||||
Terns Pharmaceuticals, Inc.(a) | 11,132 | 55,994 | ||||||
Theravance Biopharma, Inc.(a) | 15,220 | 131,349 | ||||||
Ventyx Biosciences, Inc.(a)(b) | 12,156 | 422,178 | ||||||
Viatris, Inc. | 316,240 | 3,118,126 | ||||||
WaVe Life Sciences Ltd.(a)(b) | 30,696 | 176,502 | ||||||
Xeris Biopharma Holdings, Inc.(a) | 24,760 | 46,054 | ||||||
Zoetis, Inc., Class A | 122,031 | 21,230,953 | ||||||
|
| |||||||
412,793,759 | ||||||||
Professional Services — 1.0% | ||||||||
Alight, Inc., Class A(a) | 100,552 | 712,914 | ||||||
ASGN, Inc.(a) | 13,153 | 1,074,337 | ||||||
Asure Software, Inc.(a) | 3,380 | 31,975 | ||||||
Automatic Data Processing, Inc. | 108,962 | 26,214,078 | ||||||
Barrett Business Services, Inc. | 1,721 | 155,303 | ||||||
Booz Allen Hamilton Holding Corp., Class A | 33,981 | 3,713,104 | ||||||
Broadridge Financial Solutions, Inc. | 31,047 | 5,558,965 | ||||||
CACI International, Inc., Class A(a) | 5,991 | 1,880,755 | ||||||
CBIZ, Inc.(a) | 13,412 | 696,083 | ||||||
Ceridian HCM Holding, Inc.(a)(b) | 38,660 | 2,623,081 | ||||||
Clarivate PLC(a)(b) | 121,718 | 816,728 | ||||||
Concentrix Corp. | 11,056 | 885,696 | ||||||
Conduent, Inc.(a) | 40,684 | 141,580 | ||||||
CRA International, Inc. | 1,713 | 172,602 | ||||||
CSG Systems International, Inc. | 8,256 | 422,047 | ||||||
Dun & Bradstreet Holdings, Inc. | 66,962 | 668,950 | ||||||
Equifax, Inc. | 32,001 | 5,861,943 | ||||||
ExlService Holdings, Inc.(a)(b) | 43,121 | 1,209,113 | ||||||
Exponent, Inc. | 13,244 | 1,133,686 | ||||||
First Advantage Corp. | 14,879 | 205,181 | ||||||
Forrester Research, Inc.(a) | 3,591 | 103,780 | ||||||
Franklin Covey Co.(a) | 4,323 | 185,543 | ||||||
FTI Consulting, Inc.(a)(b) | 8,603 | 1,534,861 | ||||||
Genpact Ltd. | 46,618 | 1,687,572 | ||||||
Heidrick & Struggles International, Inc. | 4,405 | 110,213 | ||||||
HireRight Holdings Corp.(a) | 8,350 | 79,408 | ||||||
Huron Consulting Group, Inc.(a) | 4,641 | 483,407 | ||||||
ICF International, Inc.(b) | 4,805 | 580,492 | ||||||
Innodata, Inc.(a) | 8,433 | 71,933 | ||||||
Insperity, Inc. | 9,306 | 908,266 | ||||||
Jacobs Solutions, Inc. | 33,028 | 4,508,322 | ||||||
KBR, Inc. | 36,012 | 2,122,547 | ||||||
Kelly Services, Inc., Class A, NVS | 9,973 | 181,409 | ||||||
Kforce, Inc. | 4,993 | 297,882 | ||||||
Korn Ferry | 13,986 | 663,496 | ||||||
Legalzoom.com, Inc.(a) | 24,855 | 271,914 | ||||||
Leidos Holdings, Inc. | 35,263 | 3,249,838 | ||||||
ManpowerGroup, Inc. | 13,751 | 1,008,223 | ||||||
Maximus, Inc. | 16,244 | 1,213,102 | ||||||
NV5 Global, Inc.(a) | 3,642 | 350,470 | ||||||
Parsons Corp.(a)(b) | 10,727 | 583,012 | ||||||
Paychex, Inc. | 84,926 | 9,794,516 |
SCHEDULES OF INVESTMENTS | 25 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Professional Services (continued) | ||||||||
Paycom Software, Inc. | 13,368 | $ | 3,465,921 | |||||
Paycor HCM, Inc.(a)(b) | 16,806 | 383,681 | ||||||
Paylocity Holding Corp.(a) | 11,008 | 2,000,154 | ||||||
Planet Labs PBC, Class A(a)(b) | 44,316 | 115,222 | ||||||
Resources Connection, Inc. | 10,583 | 157,792 | ||||||
Robert Half, Inc. | 28,013 | 2,052,793 | ||||||
Science Applications International Corp. | 14,429 | 1,522,837 | ||||||
SS&C Technologies Holdings, Inc. | 56,119 | 2,948,492 | ||||||
Sterling Check Corp.(a)(b) | 5,849 | 73,814 | ||||||
TransUnion | 51,340 | 3,685,699 | ||||||
TriNet Group, Inc.(a) | 10,236 | 1,192,289 | ||||||
TrueBlue, Inc.(a) | 9,877 | 144,896 | ||||||
TTEC Holdings, Inc. | 4,611 | 120,900 | ||||||
Upwork, Inc.(a) | 30,086 | 341,777 | ||||||
Verisk Analytics, Inc. | 37,416 | 8,839,156 | ||||||
Verra Mobility Corp., Class A(a)(b) | 36,787 | 687,917 | ||||||
|
| |||||||
111,901,667 | ||||||||
Real Estate Management & Development — 0.2% | ||||||||
Anywhere Real Estate, Inc.(a) | 31,157 | 200,340 | ||||||
CBRE Group, Inc., Class A(a) | 81,230 | 5,999,648 | ||||||
Compass, Inc., Class A(a)(b) | 74,026 | 214,675 | ||||||
CoStar Group, Inc.(a) | 105,624 | 8,121,429 | ||||||
Cushman & Wakefield PLC(a) | 40,265 | 306,819 | ||||||
DigitalBridge Group, Inc., Class A | 41,436 | 728,445 | ||||||
Douglas Elliman, Inc. | 26,583 | 60,078 | ||||||
eXp World Holdings, Inc.(b) | 16,039 | 260,473 | ||||||
Forestar Group, Inc.(a)(b) | 6,524 | 175,757 | ||||||
FRP Holdings, Inc.(a) | 2,488 | 134,277 | ||||||
Howard Hughes Holdings, Inc.(a)(b) | 9,562 | 708,831 | ||||||
Jones Lang LaSalle, Inc.(a) | 12,573 | 1,775,056 | ||||||
Kennedy-Wilson Holdings, Inc. | 31,333 | 461,849 | ||||||
Marcus & Millichap, Inc. | 5,827 | 170,964 | ||||||
Newmark Group, Inc., Class A | 41,175 | 264,755 | ||||||
Opendoor Technologies, Inc.(a) | 145,219 | 383,378 | ||||||
Redfin Corp.(a)(b) | 26,731 | 188,186 | ||||||
REX Holdings, Inc., Class A | 5,378 | 69,591 | ||||||
RMR Group, Inc. (The), Class A | 4,084 | 100,140 | ||||||
St. Joe Co. (The) | 8,323 | 452,189 | ||||||
Tejon Ranch Co.(a) | 8,348 | 135,405 | ||||||
Zillow Group, Inc., Class A(a) | 15,706 | 703,472 | ||||||
Zillow Group, Inc., Class C, NVS(a)(b) | 41,732 | 1,926,349 | ||||||
|
| |||||||
23,542,106 | ||||||||
Residential REITs — 0.4% | ||||||||
American Homes 4 Rent, Class A | 87,283 | 2,940,564 | ||||||
Apartment Income REIT Corp. | 40,062 | 1,229,903 | ||||||
Apartment Investment & Management Co., Class A(a) | 39,842 | 270,926 | ||||||
AvalonBay Communities, Inc. | 36,983 | 6,351,461 | ||||||
Camden Property Trust | 27,361 | 2,587,803 | ||||||
Centerspace | 4,612 | 277,919 | ||||||
Elme Communities | 23,855 | 325,382 | ||||||
Equity LifeStyle Properties, Inc. | 46,293 | 2,949,327 | ||||||
Equity Residential | 98,677 | 5,793,327 | ||||||
Essex Property Trust, Inc. | 16,502 | 3,499,909 | ||||||
Independence Realty Trust, Inc. | 57,248 | 805,479 | ||||||
Invitation Homes, Inc. | 161,471 | 5,117,016 | ||||||
Mid-America Apartment Communities, Inc. | 30,711 | 3,950,970 | ||||||
NexPoint Residential Trust, Inc. | 6,131 | 197,296 | ||||||
Sun Communities, Inc. | 31,824 | 3,766,052 | ||||||
UDR, Inc. | 87,219 | 3,111,102 |
Security | Shares | Value | ||||||
Residential REITs (continued) | ||||||||
UMH Properties, Inc. | 15,444 | $ | 216,525 | |||||
Veris Residential, Inc. | 23,883 | 394,070 | ||||||
|
| |||||||
43,785,031 | ||||||||
Retail REITs — 0.4% | ||||||||
Acadia Realty Trust | 24,793 | 355,780 | ||||||
Agree Realty Corp. | 24,725 | 1,365,809 | ||||||
Alexander’s, Inc. | 545 | 99,315 | ||||||
Brixmor Property Group, Inc. | 79,298 | 1,647,812 | ||||||
CBL & Associates Properties, Inc. | 8,870 | 186,093 | ||||||
Federal Realty Investment Trust | 20,931 | 1,896,977 | ||||||
Getty Realty Corp. | 11,714 | 324,829 | ||||||
InvenTrust Properties Corp. | 18,321 | 436,223 | ||||||
Kimco Realty Corp. | 159,582 | 2,807,047 | ||||||
Kite Realty Group Trust | 54,733 | 1,172,381 | ||||||
Macerich Co. (The) | 57,513 | 627,467 | ||||||
NETSTREIT Corp. | 15,768 | 245,665 | ||||||
NNN REIT, Inc. | 48,186 | 1,702,893 | ||||||
Phillips Edison & Co., Inc. | 29,517 | 990,000 | ||||||
Realty Income Corp. | 177,598 | 8,869,244 | ||||||
Regency Centers Corp. | 47,677 | 2,833,921 | ||||||
Retail Opportunity Investments Corp. | 28,704 | 355,355 | ||||||
RPT Realty | 19,312 | 203,935 | ||||||
Saul Centers, Inc. | 3,154 | 111,242 | ||||||
Simon Property Group, Inc. | 85,096 | 9,192,921 | ||||||
SITE Centers Corp. | 47,606 | 586,982 | ||||||
Spirit Realty Capital, Inc. | 37,339 | 1,251,977 | ||||||
Tanger Factory Outlet Centers, Inc. | 28,616 | 646,722 | ||||||
Urban Edge Properties | 29,889 | 456,106 | ||||||
Whitestone REIT | 15,575 | 149,987 | ||||||
|
| |||||||
38,516,683 | ||||||||
Semiconductors & Semiconductor Equipment — 6.5% | ||||||||
ACM Research, Inc., Class A(a) | 15,796 | 285,987 | ||||||
Advanced Micro Devices, Inc.(a) | 421,166 | 43,304,288 | ||||||
Aehr Test Systems(a) | 6,721 | 307,150 | ||||||
Allegro MicroSystems, Inc.(a) | 19,040 | 608,138 | ||||||
Alpha & Omega Semiconductor Ltd.(a) | 6,305 | 188,141 | ||||||
Ambarella, Inc.(a) | 9,153 | 485,384 | ||||||
Amkor Technology, Inc. | 28,676 | 648,078 | ||||||
Analog Devices, Inc. | 132,634 | 23,222,887 | ||||||
Applied Materials, Inc. | 221,795 | 30,707,518 | ||||||
Axcelis Technologies, Inc.(a) | 8,726 | 1,422,774 | ||||||
Broadcom, Inc. | 106,160 | 88,174,373 | ||||||
CEVA, Inc.(a) | 5,597 | 108,526 | ||||||
Cirrus Logic, Inc.(a)(b) | 14,165 | 1,047,643 | ||||||
Cohu, Inc.(a) | 10,970 | 377,807 | ||||||
Credo Technology Group Holding Ltd.(a) | 28,637 | 436,714 | ||||||
Diodes, Inc.(a) | 11,999 | 946,001 | ||||||
Enphase Energy, Inc.(a)(b) | 34,626 | 4,160,314 | ||||||
Entegris, Inc. | 39,408 | 3,700,805 | ||||||
First Solar, Inc.(a) | 28,106 | 4,541,648 | ||||||
FormFactor, Inc.(a) | 20,175 | 704,914 | ||||||
GLOBALFOUNDRIES, Inc.(a)(b) | 20,557 | 1,196,212 | ||||||
Ichor Holdings Ltd.(a) | 7,237 | 224,057 | ||||||
Impinj, Inc.(a)(b) | 5,632 | 309,929 | ||||||
indie Semiconductor, Inc., Class A(a)(b) | 32,400 | 204,120 | ||||||
Intel Corp. | 1,096,920 | 38,995,506 | ||||||
inTEST Corp.(a) | 4,405 | 66,824 | ||||||
KLA Corp. | 35,981 | 16,503,045 | ||||||
Kulicke & Soffa Industries, Inc. | 14,893 | 724,247 | ||||||
Lam Research Corp. | 35,193 | 22,057,917 | ||||||
Lattice Semiconductor Corp.(a) | 36,141 | 3,105,596 | ||||||
MACOM Technology Solutions Holdings, Inc.(a) | 14,446 | 1,178,505 |
26 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
Marvell Technology, Inc. | 224,990 | $ | 12,178,709 | |||||
Maxeon Solar Technologies Ltd.(a)(b) | 6,556 | 75,984 | ||||||
MaxLinear, Inc.(a) | 18,526 | 412,203 | ||||||
Microchip Technology, Inc. | 141,200 | 11,020,660 | ||||||
Micron Technology, Inc. | 288,146 | 19,602,572 | ||||||
MKS Instruments, Inc. | 17,394 | 1,505,277 | ||||||
Monolithic Power Systems, Inc. | 12,001 | 5,544,462 | ||||||
Navitas Semiconductor Corp.(a) | 26,520 | 184,314 | ||||||
NVE Corp. | 1,240 | 101,854 | ||||||
NVIDIA Corp. | 624,345 | 271,583,832 | ||||||
ON Semiconductor Corp.(a) | 113,809 | 10,578,547 | ||||||
Onto Innovation, Inc.(a) | 12,513 | 1,595,658 | ||||||
PDF Solutions, Inc.(a) | 7,462 | 241,769 | ||||||
Photronics, Inc.(a) | 16,047 | 324,310 | ||||||
Power Integrations, Inc. | 15,453 | 1,179,218 | ||||||
Qorvo, Inc.(a) | 25,802 | 2,463,317 | ||||||
QUALCOMM, Inc. | 293,132 | 32,555,240 | ||||||
Rambus, Inc.(a) | 28,910 | 1,612,889 | ||||||
Semtech Corp.(a)(b) | 16,822 | 433,166 | ||||||
Silicon Laboratories, Inc.(a) | 8,271 | 958,526 | ||||||
SiTime Corp.(a) | 4,247 | 485,220 | ||||||
Skyworks Solutions, Inc. | 41,624 | 4,103,710 | ||||||
SMART Global Holdings, Inc.(a) | 13,937 | 339,366 | ||||||
Synaptics, Inc.(a) | 10,139 | 906,832 | ||||||
Teradyne, Inc. | 40,445 | 4,063,105 | ||||||
Texas Instruments, Inc. | 238,513 | 37,925,952 | ||||||
Ultra Clean Holdings, Inc.(a) | 11,359 | 337,021 | ||||||
Universal Display Corp. | 12,470 | 1,957,665 | ||||||
Veeco Instruments, Inc.(a) | 11,108 | 312,246 | ||||||
Wolfspeed, Inc.(a) | 32,240 | 1,228,344 | ||||||
|
| |||||||
715,757,016 | ||||||||
Software — 10.0% | ||||||||
8x8, Inc.(a) | 27,773 | 69,988 | ||||||
A10 Networks, Inc. | 14,748 | 221,662 | ||||||
ACI Worldwide, Inc.(a) | 31,333 | 706,872 | ||||||
Adeia, Inc. | 27,695 | 295,783 | ||||||
Adobe, Inc.(a) | 120,393 | 61,388,391 | ||||||
Agilysys, Inc.(a) | 4,944 | 327,095 | ||||||
Alarm.com Holdings, Inc.(a) | 12,070 | 737,960 | ||||||
Alkami Technology, Inc.(a)(b) | 7,354 | 133,990 | ||||||
Altair Engineering, Inc., Class A(a)(b) | 13,844 | 866,081 | ||||||
Alteryx, Inc., Class A(a)(b) | 15,333 | 577,901 | ||||||
American Software, Inc., Class A | 8,703 | 99,736 | ||||||
Amplitude, Inc., Class A(a) | 17,010 | 196,806 | ||||||
ANSYS, Inc.(a) | 22,936 | 6,824,607 | ||||||
Appfolio, Inc., Class A(a) | 5,392 | 984,741 | ||||||
Appian Corp., Class A(a)(b) | 10,191 | 464,812 | ||||||
Applied Digital Corp.(a)(b) | 17,650 | 110,136 | ||||||
AppLovin Corp., Class A(a)(b) | 55,342 | 2,211,466 | ||||||
Asana, Inc., Class A(a)(b) | 19,454 | 356,203 | ||||||
Aspen Technology, Inc.(a)(b) | 7,573 | 1,546,861 | ||||||
Atlassian Corp., Class A(a)(b) | 37,794 | 7,615,869 | ||||||
Aurora Innovation, Inc., Class A(a)(b) | 79,013 | 185,681 | ||||||
Autodesk, Inc.(a) | 56,361 | 11,661,655 | ||||||
AvePoint, Inc., Class A(a)(b) | 38,782 | 260,615 | ||||||
Bentley Systems, Inc., Class B(b) | 50,365 | 2,526,308 | ||||||
BILL Holdings, Inc.(a)(b) | 26,621 | 2,890,242 | ||||||
Bit Digital, Inc.(a) | 25,133 | 53,785 | ||||||
Blackbaud, Inc.(a) | 11,165 | 785,123 | ||||||
BlackLine, Inc.(a)(b) | 14,712 | 816,075 | ||||||
Box, Inc., Class A(a) | 36,992 | 895,576 | ||||||
Braze, Inc., Class A(a) | 13,691 | 639,780 |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
C3.ai, Inc., Class A(a)(b) | 15,440 | $ | 394,029 | |||||
Cadence Design Systems, Inc.(a) | 70,919 | 16,616,322 | ||||||
CCC Intelligent Solutions Holdings, Inc.(a)(b) | 55,855 | 745,664 | ||||||
Cerence, Inc.(a)(b) | 9,812 | 199,870 | ||||||
Cleanspark, Inc.(a)(b) | 32,226 | 122,781 | ||||||
Clear Secure, Inc., Class A | 21,666 | 412,521 | ||||||
CommVault Systems, Inc.(a) | 11,021 | 745,130 | ||||||
Confluent, Inc., Class A(a)(b) | 48,503 | 1,436,174 | ||||||
Consensus Cloud Solutions, Inc.(a) | 5,612 | 141,310 | ||||||
Couchbase, Inc.(a) | 9,315 | 159,845 | ||||||
Crowdstrike Holdings, Inc., Class A(a) | 55,201 | 9,239,543 | ||||||
CS Disco, Inc.(a) | 9,591 | 63,684 | ||||||
Datadog, Inc., Class A(a) | 71,604 | 6,522,408 | ||||||
Digimarc Corp.(a)(b) | 5,236 | 170,118 | ||||||
Digital Turbine, Inc.(a) | 22,349 | 135,211 | ||||||
DocuSign, Inc.(a) | 51,932 | 2,181,144 | ||||||
Dolby Laboratories, Inc., Class A | 15,321 | 1,214,342 | ||||||
Domo, Inc., Class B(a) | 6,811 | 66,816 | ||||||
DoubleVerify Holdings, Inc.(a) | 32,818 | 917,263 | ||||||
Dropbox, Inc., Class A(a) | 69,239 | 1,885,378 | ||||||
Dynatrace, Inc.(a) | 63,357 | 2,960,673 | ||||||
E2open Parent Holdings, Inc., Class A(a)(b) | 53,237 | 241,696 | ||||||
Ebix, Inc. | 6,738 | 66,571 | ||||||
Elastic NV(a) | 21,040 | 1,709,290 | ||||||
Enfusion, Inc., Class A(a)(b) | 7,970 | 71,491 | ||||||
EngageSmart, Inc.(a) | 11,448 | 205,950 | ||||||
Envestnet, Inc.(a) | 14,382 | 633,239 | ||||||
Everbridge, Inc.(a) | 9,516 | 213,349 | ||||||
EverCommerce, Inc.(a) | 11,219 | 112,527 | ||||||
Expensify, Inc., Class A(a) | 14,348 | 46,631 | ||||||
Fair Isaac Corp.(a) | 6,419 | 5,575,094 | ||||||
Five9, Inc.(a) | 19,172 | 1,232,760 | ||||||
Fortinet, Inc.(a)(b) | 172,162 | 10,102,466 | ||||||
Freshworks, Inc., Class A(a)(b) | 42,113 | 838,891 | ||||||
Gen Digital, Inc. | 144,675 | 2,557,854 | ||||||
Gitlab, Inc., Class A(a)(b) | 23,104 | 1,044,763 | ||||||
Guidewire Software, Inc.(a) | 21,565 | 1,940,850 | ||||||
HashiCorp, Inc., Class A(a) | 24,333 | 555,522 | ||||||
HubSpot, Inc.(a)(b) | 11,908 | 5,864,690 | ||||||
Informatica, Inc., Class A(a)(b) | 8,691 | 183,119 | ||||||
Instructure Holdings, Inc.(a)(b) | 5,146 | 130,708 | ||||||
Intapp, Inc.(a) | 4,045 | 135,588 | ||||||
InterDigital, Inc. | 7,495 | 601,399 | ||||||
Intuit, Inc. | 71,778 | 36,674,251 | ||||||
Jamf Holding Corp.(a)(b) | 17,756 | 313,571 | ||||||
LivePerson, Inc.(a)(b) | 16,340 | 63,563 | ||||||
LiveRamp Holdings, Inc.(a) | 16,481 | 475,312 | ||||||
Manhattan Associates, Inc.(a) | 16,316 | 3,225,021 | ||||||
Marathon Digital Holdings, Inc.(a)(b) | 43,751 | 371,884 | ||||||
Matterport, Inc., Class A(a)(b) | 64,567 | 140,110 | ||||||
MeridianLink, Inc.(a) | 5,972 | 101,882 | ||||||
Microsoft Corp. | 1,955,516 | 617,454,177 | ||||||
MicroStrategy, Inc., Class A(a)(b) | 2,873 | 943,148 | ||||||
Mitek Systems, Inc.(a) | 10,831 | 116,108 | ||||||
Model N, Inc.(a)(b) | 9,517 | 232,310 | ||||||
N-able, Inc.(a) | 17,745 | 228,911 | ||||||
nCino, Inc.(a)(b) | 20,142 | 640,516 | ||||||
NCR Corp.(a) | 33,151 | 894,082 | ||||||
New Relic, Inc.(a) | 13,635 | 1,167,429 | ||||||
NextNav, Inc.(a)(b) | 22,647 | 116,406 | ||||||
Nutanix, Inc., Class A(a) | 60,134 | 2,097,474 | ||||||
Olo, Inc., Class A(a) | 26,428 | 160,154 |
SCHEDULES OF INVESTMENTS | 27 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
ON24, Inc. | 14,958 | $ | 94,684 | |||||
OneSpan, Inc.(a)(b) | 10,861 | 116,756 | ||||||
Oracle Corp. | 399,518 | 42,316,947 | ||||||
PagerDuty, Inc.(a)(b) | 20,977 | 471,773 | ||||||
Palantir Technologies, Inc., Class A(a)(b) | 491,178 | 7,858,848 | ||||||
Palo Alto Networks, Inc.(a)(b) | 79,486 | 18,634,698 | ||||||
Pegasystems, Inc. | 10,847 | 470,868 | ||||||
PowerSchool Holdings, Inc., Class A(a) | 16,151 | 365,982 | ||||||
Procore Technologies, Inc.(a)(b) | 20,568 | 1,343,502 | ||||||
Progress Software Corp. | 11,602 | 610,033 | ||||||
PROS Holdings, Inc.(a) | 11,647 | 403,219 | ||||||
PTC, Inc.(a) | 30,099 | 4,264,426 | ||||||
Q2 Holdings, Inc.(a)(b) | 14,622 | 471,852 | ||||||
Qualys, Inc.(a) | 9,876 | 1,506,584 | ||||||
Rapid7, Inc.(a) | 14,995 | 686,471 | ||||||
Rimini Street, Inc.(a)(b) | 24,940 | 54,868 | ||||||
RingCentral, Inc., Class A(a) | 24,127 | 714,883 | ||||||
Riot Platforms, Inc.(a)(b) | 40,086 | 374,002 | ||||||
Roper Technologies, Inc. | 27,689 | 13,409,229 | ||||||
Salesforce, Inc.(a) | 248,701 | 50,431,589 | ||||||
Sapiens International Corp. | 6,790 | 193,040 | ||||||
SEMrush Holdings, Inc., Class A(a) | 12,058 | 102,493 | ||||||
SentinelOne, Inc., Class A(a)(b) | 60,621 | 1,022,070 | ||||||
ServiceNow, Inc.(a) | 53,494 | 29,901,006 | ||||||
Smartsheet, Inc., Class A(a) | 34,038 | 1,377,177 | ||||||
SolarWinds Corp.(a) | 12,139 | 114,592 | ||||||
SoundHound AI, Inc., Class A(a)(b) | 36,369 | �� | 73,102 | |||||
SoundThinking, Inc.(a) | 2,847 | 50,961 | ||||||
Splunk, Inc.(a) | 40,248 | 5,886,270 | ||||||
Sprinklr, Inc., Class A(a)(b) | 30,391 | 420,611 | ||||||
Sprout Social, Inc., Class A(a)(b) | 11,484 | 572,822 | ||||||
SPS Commerce, Inc.(a) | 9,703 | 1,655,429 | ||||||
Synopsys, Inc.(a) | 40,005 | 18,361,095 | ||||||
Tenable Holdings, Inc.(a) | 30,982 | 1,387,994 | ||||||
Teradata Corp.(a) | 25,987 | 1,169,935 | ||||||
Terawulf, Inc.(a) | 66,356 | 83,609 | ||||||
Tyler Technologies, Inc.(a) | 10,929 | 4,220,124 | ||||||
UiPath, Inc., Class A(a)(b) | 98,759 | 1,689,766 | ||||||
Unity Software, Inc.(a)(b) | 75,334 | 2,364,734 | ||||||
Varonis Systems, Inc.(a) | 27,141 | 828,886 | ||||||
Verint Systems, Inc.(a) | 17,554 | 403,566 | ||||||
VMware, Inc., Class A(a) | 56,351 | 9,381,314 | ||||||
Weave Communications, Inc.(a) | 13,248 | 107,971 | ||||||
Workday, Inc., Class A(a)(b) | 51,870 | 11,144,269 | ||||||
Workiva, Inc., Class A(a)(b) | 12,916 | 1,308,907 | ||||||
Xperi, Inc.(a) | 12,249 | 120,775 | ||||||
Yext, Inc.(a) | 25,226 | 159,681 | ||||||
Zeta Global Holdings Corp., Class A(a) | 30,346 | 253,389 | ||||||
Zoom Video Communications, Inc., Class A(a)(b) | 66,126 | 4,624,852 | ||||||
Zscaler, Inc.(a) | 22,879 | 3,559,744 | ||||||
Zuora, Inc., Class A(a) | 29,109 | 239,858 | ||||||
|
| |||||||
1,099,644,039 | ||||||||
Specialized REITs — 1.0% | ||||||||
American Tower Corp. | 122,316 | 20,114,866 | ||||||
Crown Castle, Inc. | 113,413 | 10,437,398 | ||||||
CubeSmart | 58,024 | 2,212,455 | ||||||
Digital Realty Trust, Inc. | 78,709 | 9,525,363 | ||||||
EPR Properties | 20,425 | 848,454 | ||||||
Equinix, Inc. | 24,515 | 17,804,264 | ||||||
Extra Space Storage, Inc. | 54,805 | 6,663,192 | ||||||
Farmland Partners, Inc. | 10,132 | 103,954 | ||||||
Four Corners Property Trust, Inc. | 21,965 | 487,403 |
Security | Shares | Value | ||||||
Specialized REITs (continued) | ||||||||
Gaming & Leisure Properties, Inc. | 64,963 | $ | 2,959,065 | |||||
Gladstone Land Corp. | 9,154 | 130,261 | ||||||
Iron Mountain, Inc. | 76,795 | 4,565,463 | ||||||
Lamar Advertising Co., Class A | 23,026 | 1,921,980 | ||||||
National Storage Affiliates Trust | 22,271 | 706,882 | ||||||
Outfront Media, Inc. | 38,529 | 389,143 | ||||||
PotlatchDeltic Corp. | 21,399 | 971,301 | ||||||
Public Storage | 41,146 | 10,842,794 | ||||||
Rayonier, Inc. | 37,313 | 1,061,928 | ||||||
Safehold, Inc.(a) | 8,856 | 157,637 | ||||||
SBA Communications Corp., Class A | 28,159 | 5,636,587 | ||||||
Uniti Group, Inc. | 60,911 | 287,500 | ||||||
VICI Properties, Inc. | 264,329 | 7,691,974 | ||||||
Weyerhaeuser Co. | 193,750 | 5,940,375 | ||||||
|
| |||||||
111,460,239 | ||||||||
Specialty Retail — 2.1% | ||||||||
1-800-Flowers.com, Inc., Class A(a) | 10,596 | 74,172 | ||||||
Aaron’s Co., Inc. (The) | 9,727 | 101,842 | ||||||
Abercrombie & Fitch Co., Class A(a)(b) | 14,040 | 791,435 | ||||||
Academy Sports & Outdoors, Inc. | 19,910 | 941,146 | ||||||
Advance Auto Parts, Inc. | 15,405 | 861,602 | ||||||
American Eagle Outfitters, Inc. | 48,005 | 797,363 | ||||||
America’s Car-Mart, Inc.(a) | 1,934 | 175,975 | ||||||
Arko Corp., Class A | 20,595 | 147,254 | ||||||
Asbury Automotive Group, Inc.(a)(b) | 5,354 | 1,231,795 | ||||||
AutoNation, Inc.(a)(b) | 7,983 | 1,208,626 | ||||||
AutoZone, Inc.(a) | 4,760 | 12,090,352 | ||||||
Bath & Body Works, Inc. | 60,535 | 2,046,083 | ||||||
Best Buy Co., Inc. | 51,321 | 3,565,270 | ||||||
Boot Barn Holdings, Inc.(a) | 8,083 | 656,259 | ||||||
Buckle, Inc. (The) | 6,724 | 224,514 | ||||||
Build-A-Bear Workshop, Inc. | 4,212 | 123,875 | ||||||
Burlington Stores, Inc.(a) | 16,831 | 2,277,234 | ||||||
Caleres, Inc. | 10,558 | 303,648 | ||||||
Camping World Holdings, Inc., Class A | 10,783 | 220,081 | ||||||
CarMax, Inc.(a)(b) | 40,721 | 2,880,196 | ||||||
CarParts.com, Inc.(a) | 21,517 | 88,650 | ||||||
Carvana Co., Class A(a) | 24,882 | 1,044,546 | ||||||
Chico’s FAS, Inc.(a) | 33,019 | 246,982 | ||||||
Children’s Place, Inc. (The)(a) | 3,201 | 86,523 | ||||||
Designer Brands, Inc., Class A | 17,527 | 221,892 | ||||||
Destination XL Group, Inc.(a)(b) | 15,128 | 67,773 | ||||||
Dick’s Sporting Goods, Inc. | 15,752 | 1,710,352 | ||||||
EVgo, Inc., Class A(a) | 20,465 | 69,172 | ||||||
Five Below, Inc.(a)(b) | 14,457 | 2,326,131 | ||||||
Floor & Decor Holdings, Inc., Class A(a)(b) | 27,518 | 2,490,379 | ||||||
Foot Locker, Inc. | 20,570 | 356,889 | ||||||
GameStop Corp., Class A(a)(b) | 70,402 | 1,158,817 | ||||||
Gap, Inc. (The) | 52,621 | 559,361 | ||||||
Genesco, Inc.(a)(b) | 3,152 | 97,145 | ||||||
Group 1 Automotive, Inc. | 3,702 | 994,764 | ||||||
GrowGeneration Corp.(a) | 27,743 | 81,010 | ||||||
Guess?, Inc. | 9,445 | 204,390 | ||||||
Haverty Furniture Cos., Inc. | 4,537 | 130,575 | ||||||
Hibbett, Inc. | 4,141 | 196,739 | ||||||
Home Depot, Inc. (The) | 266,104 | 80,405,985 | ||||||
Leslie’s, Inc.(a)(b) | 41,346 | 234,018 | ||||||
Lithia Motors, Inc., Class A | 6,969 | 2,058,155 | ||||||
Lowe’s Cos., Inc. | 154,073 | 32,022,532 | ||||||
MarineMax, Inc.(a) | 5,358 | 175,850 | ||||||
Monro, Inc. | 8,323 | 231,130 | ||||||
Murphy U.S.A., Inc. | 5,154 | 1,761,276 |
28 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
National Vision Holdings, Inc.(a) | 20,425 | $ | 330,476 | |||||
ODP Corp. (The)(a) | 8,907 | 411,058 | ||||||
OneWater Marine, Inc., Class A(a)(b) | 3,334 | 85,417 | ||||||
O’Reilly Automotive, Inc.(a) | 15,671 | 14,242,745 | ||||||
Overstock.com, Inc.(a) | 11,415 | 180,585 | ||||||
Penske Automotive Group, Inc.(b) | 5,262 | 879,070 | ||||||
Petco Health & Wellness Co., Inc.(a)(b) | 23,144 | 94,659 | ||||||
PetMed Express, Inc. | 5,653 | 57,943 | ||||||
Revolve Group, Inc., Class A(a)(b) | 9,614 | 130,847 | ||||||
RH(a)(b) | 4,634 | 1,225,044 | ||||||
Ross Stores, Inc. | 88,068 | 9,947,281 | ||||||
Sally Beauty Holdings, Inc.(a)(b) | 27,425 | 229,822 | ||||||
Shoe Carnival, Inc. | 5,471 | 131,468 | ||||||
Signet Jewelers Ltd. | 11,610 | 833,714 | ||||||
Sleep Number Corp.(a) | 5,722 | 140,704 | ||||||
Sonic Automotive, Inc., Class A | 5,517 | 263,492 | ||||||
Sportsman’s Warehouse Holdings, Inc.(a) | 13,174 | 59,151 | ||||||
Stitch Fix, Inc., Class A(a)(b) | 25,983 | 89,641 | ||||||
TJX Cos., Inc. (The) | 302,200 | 26,859,536 | ||||||
Tractor Supply Co. | 28,562 | 5,799,514 | ||||||
Ulta Beauty, Inc.(a) | 13,165 | 5,258,759 | ||||||
Upbound Group, Inc. | 12,472 | 367,300 | ||||||
Urban Outfitters, Inc.(a) | 18,607 | 608,263 | ||||||
Valvoline, Inc. | 42,565 | 1,372,296 | ||||||
Victoria’s Secret & Co.(a) | 20,971 | 349,796 | ||||||
Warby Parker, Inc., Class A(a) | 25,579 | 336,620 | ||||||
Wayfair, Inc., Class A(a)(b) | 21,580 | 1,307,101 | ||||||
Williams-Sonoma, Inc. | 16,677 | 2,591,606 | ||||||
Winmark Corp. | 764 | 285,071 | ||||||
Zumiez, Inc.(a) | 5,342 | 95,088 | ||||||
|
| |||||||
234,303,825 | ||||||||
Technology Hardware, Storage & Peripherals — 6.3% | ||||||||
Apple Inc. | 3,921,284 | 671,363,034 | ||||||
Avid Technology, Inc.(a) | 10,676 | 286,864 | ||||||
Corsair Gaming, Inc.(a)(b) | 10,104 | 146,811 | ||||||
Eastman Kodak Co.(a)(b) | 19,811 | 83,404 | ||||||
Hewlett Packard Enterprise Co. | 341,073 | 5,924,438 | ||||||
HP, Inc. | 226,572 | 5,822,900 | ||||||
Immersion Corp. | 4,955 | 32,753 | ||||||
IonQ, Inc.(a)(b) | 45,005 | 669,674 | ||||||
NetApp, Inc. | 54,980 | 4,171,882 | ||||||
Pure Storage, Inc., Class A(a) | 74,073 | 2,638,480 | ||||||
Super Micro Computer, Inc.(a)(b) | 12,195 | 3,344,113 | ||||||
Western Digital Corp.(a) | 84,239 | 3,843,826 | ||||||
Xerox Holdings Corp. | 33,195 | 520,830 | ||||||
|
| |||||||
698,849,009 | ||||||||
Textiles, Apparel & Luxury Goods — 0.5% | ||||||||
Allbirds, Inc., Class A(a)(b) | 33,620 | 37,318 | ||||||
Capri Holdings Ltd.(a) | 30,096 | 1,583,351 | ||||||
Carter’s, Inc. | 9,712 | 671,585 | ||||||
Columbia Sportswear Co. | 9,898 | 733,442 | ||||||
Crocs, Inc.(a) | 16,138 | 1,423,856 | ||||||
Deckers Outdoor Corp.(a) | 6,883 | 3,538,481 | ||||||
Figs, Inc., Class A(a)(b) | 37,509 | 221,303 | ||||||
G-III Apparel Group Ltd.(a) | 11,120 | 277,110 | ||||||
Hanesbrands, Inc. | 94,058 | 372,470 | ||||||
Kontoor Brands, Inc. | 13,977 | 613,730 | ||||||
Lululemon Athletica, Inc.(a) | 29,106 | 11,223,565 | ||||||
Movado Group, Inc. | 4,300 | 117,605 | ||||||
NIKE, Inc., Class B | 313,126 | 29,941,108 | ||||||
Oxford Industries, Inc. | 4,546 | 437,007 | ||||||
PVH Corp. | 15,961 | 1,221,176 |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||
Ralph Lauren Corp., Class A | 10,829 | $ | 1,257,139 | |||||
Skechers U.S.A., Inc., Class A(a) | 34,501 | 1,688,824 | ||||||
Steven Madden Ltd. | 21,936 | 696,907 | ||||||
Tapestry, Inc. | 62,250 | 1,789,687 | ||||||
Under Armour, Inc., Class A(a) | 49,683 | 340,328 | ||||||
Under Armour, Inc., Class C, NVS(a) | 50,561 | 322,579 | ||||||
VF Corp. | 91,413 | 1,615,268 | ||||||
Wolverine World Wide, Inc. | 22,327 | 179,956 | ||||||
|
| |||||||
60,303,795 | ||||||||
Tobacco — 0.5% | ||||||||
Altria Group, Inc. | 468,614 | 19,705,219 | ||||||
Philip Morris International, Inc. | 407,655 | 37,740,700 | ||||||
Turning Point Brands, Inc. | 6,027 | 139,163 | ||||||
Universal Corp. | 6,580 | 310,642 | ||||||
Vector Group Ltd. | 40,717 | 433,229 | ||||||
|
| |||||||
58,328,953 | ||||||||
Trading Companies & Distributors — 0.5% | ||||||||
Air Lease Corp., Class A | 28,047 | 1,105,332 | ||||||
Alta Equipment Group, Inc., Class A | 8,842 | 106,635 | ||||||
Applied Industrial Technologies, Inc. | 9,754 | 1,508,066 | ||||||
Beacon Roofing Supply, Inc.(a) | 14,054 | 1,084,547 | ||||||
BlueLinx Holdings, Inc.(a) | 2,253 | 184,949 | ||||||
Boise Cascade Co. | 10,828 | 1,115,717 | ||||||
Core & Main, Inc., Class A(a)(b) | 22,550 | 650,567 | ||||||
Custom Truck One Source, Inc.(a) | 17,019 | 105,518 | ||||||
DXP Enterprises, Inc.(a) | 5,352 | 186,999 | ||||||
Fastenal Co. | 150,587 | 8,228,074 | ||||||
Ferguson PLC | 54,115 | 8,900,294 | ||||||
FTAI Aviation Ltd. | 25,877 | 919,927 | ||||||
GATX Corp. | 8,923 | 971,090 | ||||||
Global Industrial Co. | 3,919 | 131,287 | ||||||
GMS, Inc.(a) | 11,039 | 706,165 | ||||||
H&E Equipment Services, Inc. | 8,048 | 347,593 | ||||||
Herc Holdings, Inc. | 7,349 | 874,090 | ||||||
Hudson Technologies, Inc.(a) | 11,213 | 149,133 | ||||||
McGrath RentCorp | 6,077 | 609,158 | ||||||
MRC Global, Inc.(a) | 23,066 | 236,426 | ||||||
MSC Industrial Direct Co., Inc., Class A | 12,200 | 1,197,430 | ||||||
NOW, Inc.(a) | 27,357 | 324,728 | ||||||
Rush Enterprises, Inc., Class A | 15,303 | 624,821 | ||||||
Rush Enterprises, Inc., Class B | 3,316 | 150,182 | ||||||
SiteOne Landscape Supply, Inc.(a)(b) | 11,361 | 1,856,955 | ||||||
Textainer Group Holdings Ltd. | 11,755 | 437,874 | ||||||
Titan Machinery, Inc.(a) | 5,657 | 150,363 | ||||||
Transcat, Inc.(a) | 1,381 | 135,297 | ||||||
Triton International Ltd.(d) | 14,223 | 1,170,054 | ||||||
United Rentals, Inc. | 17,989 | 7,997,370 | ||||||
Veritiv Corp. | 3,477 | 587,265 | ||||||
Watsco., Inc. | 8,758 | 3,308,072 | ||||||
WESCO International, Inc. | 11,509 | 1,655,224 | ||||||
WW Grainger, Inc. | 11,663 | 8,068,930 | ||||||
Xometry, Inc., Class A(a)(b) | 9,370 | 159,103 | ||||||
|
| |||||||
55,945,235 | ||||||||
Water Utilities — 0.1% | ||||||||
American States Water Co. | 10,087 | 793,645 | ||||||
American Water Works Co., Inc. | 51,550 | 6,383,436 | ||||||
Artesian Resources Corp., Class A, NVS | 2,925 | 122,821 | ||||||
California Water Service Group | 15,325 | 725,026 | ||||||
Consolidated Water Co. Ltd. | 4,663 | 132,616 | ||||||
Essential Utilities, Inc. | 63,634 | 2,184,555 | ||||||
Middlesex Water Co. | 5,061 | 335,291 |
SCHEDULES OF INVESTMENTS | 29 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Water Utilities (continued) | ||||||||
SJW Group | 7,590 | $ | 456,235 | |||||
York Water Co. (The) | 3,255 | 122,030 | ||||||
|
| |||||||
11,255,655 | ||||||||
Wireless Telecommunication Services — 0.2% | ||||||||
Gogo, Inc.(a)(b) | 17,231 | 205,566 | ||||||
Shenandoah Telecommunications Co. | 13,153 | 271,083 | ||||||
Telephone & Data Systems, Inc. | 27,273 | 499,369 | ||||||
T-Mobile U.S., Inc.(a) | 140,444 | 19,669,182 | ||||||
|
| |||||||
20,645,200 | ||||||||
|
| |||||||
Total Common Stocks — 99.8% | 10,993,837,314 | |||||||
|
| |||||||
Rights | ||||||||
Biotechnology — 0.0% | ||||||||
Aduro Biotech CVR(a)(d) | 4,039 | 10,255 | ||||||
Chinook Therapeutics, Inc., CVR(a)(d) | 16,679 | 7,172 | ||||||
GTX, Inc., Contingent Rights(a)(b)(d) | 684 | 701 | ||||||
|
| |||||||
18,128 | ||||||||
|
| |||||||
Total Rights — 0.0% | 18,128 | |||||||
|
| |||||||
Warrants(a) | ||||||||
Oil, Gas & Consumable Fuels — 0.0% | ||||||||
Chord Energy Corp. (Issued/Exercisable, Expires 09/01/25, Strike Price USD 83.45) | 204 | 3,621 | ||||||
Chord Energy Corp., Class A (Issued/Exercisable, Expires 09/01/24, Strike Price USD 73.44) | 409 | 11,223 | ||||||
|
| |||||||
14,844 | ||||||||
|
| |||||||
Total Warrants — 0.0% | 14,844 | |||||||
|
| |||||||
Total Long-Term Investments — 99.8% | 10,993,870,286 | |||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Short-Term Securities | ||||||||
Money Market Funds — 2.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(f)(g) | 251,841,852 | $ | 251,942,589 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(f) | 61,414,757 | 61,414,757 | ||||||
|
| |||||||
Total Short-Term Securities — 2.8% | 313,357,346 | |||||||
|
| |||||||
Total Investments — 102.6% | 11,307,227,632 | |||||||
Liabilities in Excess of Other Assets — (2.6)% | (288,642,197 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 11,018,585,435 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $26,277, representing 0.0% of its net assets as of period end, and an original cost of $96,475. |
(f) | Annualized 7-day yield as of period end. |
(g) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at | Income | Capital Gain | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 245,670,879 | $ | 6,245,745 | (a) | $ | — | $ | 10,114 | $ | 15,851 | $ | 251,942,589 | 251,841,852 | $ | 1,235,977 | (b) | $ | — | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 17,462,038 | 43,952,719 | (a) | — | — | — | 61,414,757 | 61,414,757 | 478,339 | — | ||||||||||||||||||||||||||||||||
BlackRock, Inc. | 26,432,247 | 512,651 | (845,730 | ) | 274,080 | (1,156,906 | ) | 25,216,342 | 39,005 | 390,515 | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
$ | 284,194 | $ | (1,141,055 | ) | $ | 338,573,688 | $ | 2,104,831 | $ | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
30 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Russell 2000 E-Mini Index | 30 | 12/15/23 | $ | 2,698 | $ | (85,377 | ) | |||||||||
S&P 500 E-Mini Index | 99 | 12/15/23 | 21,411 | (680,269 | ) | |||||||||||
|
| |||||||||||||||
$ | (765,646 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 765,646 | $ | — | $ | — | $ | — | $ | 765,646 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 2,741,924 | $ | — | $ | — | $ | — | $ | 2,741,924 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (1,898,609 | ) | $ | — | $ | — | $ | — | $ | (1,898,609 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 21,292,654 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
SCHEDULES OF INVESTMENTS | 31 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell 3000 ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 10,992,612,973 | $ | 53,110 | $ | 1,171,231 | $ | 10,993,837,314 | ||||||||
Rights | — | — | 18,128 | 18,128 | ||||||||||||
Warrants | 14,844 | — | — | 14,844 | ||||||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 313,357,346 | — | — | 313,357,346 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 11,305,985,163 | $ | 53,110 | $ | 1,189,359 | $ | 11,307,227,632 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (765,646 | ) | $ | — | $ | — | $ | (765,646 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
32 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.6% | ||||||||
BWX Technologies, Inc. | 133,696 | $ | 10,024,526 | |||||
Curtiss-Wright Corp. | 68,005 | 13,303,818 | ||||||
HEICO Corp.(a) | 7,895 | 1,278,437 | ||||||
HEICO Corp., Class A | 13,961 | 1,804,041 | ||||||
Hexcel Corp. | 150,460 | 9,800,964 | ||||||
Howmet Aerospace, Inc. | 673,018 | 31,127,083 | ||||||
Huntington Ingalls Industries, Inc. | 69,740 | 14,267,409 | ||||||
Mercury Systems, Inc.(a)(b) | 87,482 | 3,244,707 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 169,577 | 2,736,973 | ||||||
Textron, Inc.(a) | 350,887 | 27,418,310 | ||||||
TransDigm Group, Inc.(b) | 77,453 | 65,302,948 | ||||||
Woodward, Inc. | 105,450 | 13,103,217 | ||||||
|
| |||||||
193,412,433 | ||||||||
Air Freight & Logistics — 0.4% | ||||||||
CH Robinson Worldwide, Inc. | 44,855 | 3,863,361 | ||||||
Expeditors International of Washington, Inc.(a) | 233,480 | 26,763,812 | ||||||
GXO Logistics, Inc.(a)(b) | 208,498 | 12,228,408 | ||||||
|
| |||||||
42,855,581 | ||||||||
Automobile Components — 0.8% | ||||||||
Aptiv PLC(b) | 480,344 | 47,357,115 | ||||||
BorgWarner, Inc. | 413,792 | 16,704,783 | ||||||
Gentex Corp. | 417,804 | 13,595,342 | ||||||
Lear Corp. | 104,511 | 14,025,376 | ||||||
Phinia, Inc. | 82,878 | 2,220,302 | ||||||
QuantumScape Corp., Class A(a)(b) | 519,740 | 3,477,061 | ||||||
|
| |||||||
97,379,979 | ||||||||
Automobiles — 0.4% | ||||||||
Harley-Davidson, Inc. | 234,839 | 7,763,777 | ||||||
Lucid Group, Inc.(a)(b) | 1,334,150 | 7,457,899 | ||||||
Rivian Automotive, Inc., Class A(a)(b) | 1,176,330 | 28,561,292 | ||||||
Thor Industries, Inc. | 90,347 | 8,594,710 | ||||||
|
| |||||||
52,377,678 | ||||||||
Banks — 3.0% | ||||||||
Bank OZK | 192,454 | 7,134,270 | ||||||
BOK Financial Corp. | 49,986 | 3,997,880 | ||||||
Citizens Financial Group, Inc. | 840,080 | 22,514,144 | ||||||
Columbia Banking System, Inc. | 372,830 | 7,568,449 | ||||||
Comerica, Inc. | 234,769 | 9,754,652 | ||||||
Commerce Bancshares, Inc. | 201,706 | 9,677,854 | ||||||
Cullen/Frost Bankers, Inc. | 104,489 | 9,530,442 | ||||||
East West Bancorp, Inc. | 250,318 | 13,194,262 | ||||||
Fifth Third Bancorp | 1,204,530 | 30,510,745 | ||||||
First Citizens BancShares, Inc., Class A | 17,159 | 23,681,136 | ||||||
First Hawaiian, Inc. | 224,437 | 4,051,088 | ||||||
First Horizon Corp. | 991,094 | 10,921,856 | ||||||
FNB Corp. | 641,173 | 6,918,257 | ||||||
Huntington Bancshares, Inc. | 2,552,238 | 26,543,275 | ||||||
KeyCorp. | 1,657,579 | 17,835,550 | ||||||
M&T Bank Corp. | 293,527 | 37,116,489 | ||||||
New York Community Bancorp, Inc., Class A | 1,267,577 | 14,374,323 | ||||||
NU Holdings Ltd., Class A(b) | 1,282,857 | 9,300,713 | ||||||
Pinnacle Financial Partners, Inc. | 133,022 | 8,917,795 | ||||||
Popular, Inc. | 126,239 | 7,954,319 | ||||||
Prosperity Bancshares, Inc. | 155,902 | 8,509,131 | ||||||
Regions Financial Corp. | 1,663,646 | 28,614,711 | ||||||
Synovus Financial Corp. | 259,376 | 7,210,653 | ||||||
Webster Financial Corp. | 309,465 | 12,474,534 | ||||||
Western Alliance Bancorp | 190,670 | 8,765,100 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Wintrust Financial Corp. | 109,057 | $ | 8,233,804 | |||||
Zions Bancorp N.A | 257,350 | 8,978,941 | ||||||
|
| |||||||
364,284,373 | ||||||||
Beverages — 0.2% | ||||||||
Boston Beer Co., Inc. (The), Class A, NVS(b) | 1,349 | 525,476 | ||||||
Brown-Forman Corp., Class A(a) | 17,781 | 1,033,076 | ||||||
Brown-Forman Corp., Class B, NVS | 66,812 | 3,854,384 | ||||||
Molson Coors Beverage Co., Class B | 310,100 | 19,719,259 | ||||||
|
| |||||||
25,132,195 | ||||||||
Biotechnology — 1.3% | ||||||||
Alnylam Pharmaceuticals, Inc.(b) | 43,682 | 7,736,082 | ||||||
Biogen, Inc.(b) | 256,166 | 65,837,224 | ||||||
BioMarin Pharmaceutical, Inc.(a)(b) | 292,754 | 25,902,874 | ||||||
Exact Sciences Corp.(b) | 206,844 | 14,110,898 | ||||||
Exelixis, Inc.(b) | 148,298 | 3,240,311 | ||||||
Horizon Therapeutics PLC(b) | 45,955 | 5,316,534 | ||||||
Incyte Corp.(b) | 87,133 | 5,033,673 | ||||||
Ionis Pharmaceuticals, Inc.(a)(b) | 34,933 | 1,584,561 | ||||||
Karuna Therapeutics, Inc.(a)(b) | 6,648 | 1,124,110 | ||||||
Mirati Therapeutics, Inc.(a)(b) | 80,542 | 3,508,410 | ||||||
Roivant Sciences Ltd.(a)(b) | 34,376 | 401,512 | ||||||
United Therapeutics Corp.(b) | 80,213 | 18,117,710 | ||||||
|
| |||||||
151,913,899 | ||||||||
Broadline Retail — 0.5% | ||||||||
eBay, Inc. | 889,670 | 39,225,550 | ||||||
Etsy, Inc.(b) | 96,504 | 6,232,228 | ||||||
Kohl’s Corp. | 199,826 | 4,188,353 | ||||||
Macy’s, Inc. | 485,463 | 5,636,226 | ||||||
Nordstrom, Inc. | 201,375 | 3,008,543 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.(a)(b) | 73,963 | 5,708,464 | ||||||
|
| |||||||
63,999,364 | ||||||||
Building Products — 2.5% | ||||||||
A O Smith Corp. | 195,130 | 12,903,947 | ||||||
Allegion PLC | 11,616 | 1,210,387 | ||||||
Armstrong World Industries, Inc. | 55,959 | 4,029,048 | ||||||
AZEK Co., Inc. (The), Class A(b) | 235,150 | 6,993,361 | ||||||
Builders FirstSource, Inc.(b) | 226,584 | 28,207,442 | ||||||
Carlisle Cos., Inc. | 88,011 | 22,817,732 | ||||||
Carrier Global Corp. | 1,481,013 | 81,751,918 | ||||||
Fortune Brands Innovations, Inc. | 224,897 | 13,979,598 | ||||||
Hayward Holdings, Inc.(a)(b) | 235,744 | 3,323,990 | ||||||
Lennox International, Inc. | 56,694 | 21,228,501 | ||||||
Masco Corp. | 398,936 | 21,323,129 | ||||||
Owens Corning | 159,290 | 21,728,749 | ||||||
Trane Technologies PLC | 284,934 | 57,815,958 | ||||||
|
| |||||||
297,313,760 | ||||||||
Capital Markets — 4.5% | ||||||||
Affiliated Managers Group, Inc. | 62,951 | 8,205,033 | ||||||
Bank of New York Mellon Corp. (The) | 1,386,921 | 59,152,181 | ||||||
Blue Owl Capital, Inc., Class A | 672,608 | 8,717,000 | ||||||
Carlyle Group, Inc. (The) | 376,416 | 11,352,707 | ||||||
Cboe Global Markets, Inc. | 186,617 | 29,151,442 | ||||||
Coinbase Global, Inc., Class A(a)(b) | 295,700 | 22,201,156 | ||||||
Evercore, Inc., Class A | 62,956 | 8,680,373 | ||||||
Franklin Resources, Inc. | 506,854 | 12,458,471 | ||||||
Houlihan Lokey, Inc., Class A | 83,690 | 8,964,873 | ||||||
Interactive Brokers Group, Inc., Class A | 178,833 | 15,479,784 | ||||||
Invesco Ltd. | 647,521 | 9,402,005 | ||||||
Janus Henderson Group PLC | 240,766 | 6,216,578 | ||||||
Jefferies Financial Group, Inc. | 339,027 | 12,418,559 |
SCHEDULES OF INVESTMENTS | 33 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Capital Markets (continued) | ||||||||
KKR & Co., Inc., Class A | 864,332 | $ | 53,242,851 | |||||
Lazard Ltd., Class A | 197,032 | 6,109,962 | ||||||
MSCI, Inc., Class A | 68,138 | 34,960,245 | ||||||
Nasdaq, Inc. | 608,062 | 29,545,733 | ||||||
Northern Trust Corp. | 363,303 | 25,242,292 | ||||||
Raymond James Financial, Inc. | 336,944 | 33,839,286 | ||||||
Robinhood Markets, Inc., Class A(a)(b) | 1,183,831 | 11,613,382 | ||||||
SEI Investments Co. | 181,590 | 10,937,166 | ||||||
State Street Corp. | 564,613 | 37,806,487 | ||||||
Stifel Financial Corp. | 181,256 | 11,136,369 | ||||||
T Rowe Price Group, Inc. | 392,586 | 41,170,494 | ||||||
TPG, Inc., Class A | 80,393 | 2,421,437 | ||||||
Tradeweb Markets, Inc., Class A | 132,347 | 10,614,229 | ||||||
Virtu Financial, Inc., Class A | 157,675 | 2,723,047 | ||||||
XP, Inc., Class A | 537,907 | 12,398,756 | ||||||
|
| |||||||
536,161,898 | ||||||||
Chemicals — 3.8% | ||||||||
Albemarle Corp.(a) | 207,761 | 35,327,680 | ||||||
Ashland, Inc. | 84,539 | 6,905,145 | ||||||
Axalta Coating Systems Ltd.(b) | 348,764 | 9,381,752 | ||||||
Celanese Corp., Class A | 175,338 | 22,008,426 | ||||||
CF Industries Holdings, Inc. | 346,886 | 29,742,006 | ||||||
Chemours Co. (The) | 266,094 | 7,463,937 | ||||||
Corteva, Inc. | 1,268,511 | 64,897,023 | ||||||
DuPont de Nemours, Inc. | 816,530 | 60,904,973 | ||||||
Eastman Chemical Co. | 210,821 | 16,174,187 | ||||||
Element Solutions, Inc. | 400,389 | 7,851,628 | ||||||
FMC Corp. | 188,458 | 12,621,032 | ||||||
Ginkgo Bioworks Holdings, Inc., Class A(a)(b) | 2,517,610 | 4,556,874 | ||||||
Huntsman Corp. | 301,522 | 7,357,137 | ||||||
International Flavors & Fragrances, Inc. | 453,105 | 30,888,168 | ||||||
LyondellBasell Industries NV, Class A | 459,137 | 43,480,274 | ||||||
Mosaic Co. (The) | 587,133 | 20,901,935 | ||||||
NewMarket Corp. | 10,992 | 5,001,800 | ||||||
Olin Corp. | 230,160 | 11,503,397 | ||||||
PPG Industries, Inc. | 312,028 | 40,501,234 | ||||||
RPM International, Inc. | 183,077 | 17,357,530 | ||||||
Westlake Corp. | 58,114 | 7,245,072 | ||||||
|
| |||||||
462,071,210 | ||||||||
Commercial Services & Supplies — 0.9% | ||||||||
Cintas Corp. | 17,103 | 8,226,714 | ||||||
Clean Harbors, Inc.(a)(b) | 89,498 | 14,978,385 | ||||||
Driven Brands Holdings, Inc.(b) | 109,634 | 1,380,292 | ||||||
MSA Safety, Inc. | 54,095 | 8,528,077 | ||||||
RB Global, Inc.(a) | 75,332 | 4,708,250 | ||||||
Republic Services, Inc. | 367,400 | 52,358,174 | ||||||
Stericycle, Inc.(a)(b) | 165,253 | 7,388,462 | ||||||
Tetra Tech, Inc. | 77,358 | 11,760,737 | ||||||
|
| |||||||
109,329,091 | ||||||||
Communications Equipment — 0.5% | ||||||||
Ciena Corp.(b) | 262,274 | 12,395,069 | ||||||
F5, Inc.(b) | 107,215 | 17,276,625 | ||||||
Juniper Networks, Inc. | 564,636 | 15,691,235 | ||||||
Lumentum Holdings, Inc.(b) | 122,782 | 5,547,291 | ||||||
Ubiquiti, Inc. | 1,158 | 168,257 | ||||||
Viasat, Inc.(a)(b) | 208,366 | 3,846,436 | ||||||
|
| |||||||
54,924,913 | ||||||||
Construction & Engineering — 0.8% | ||||||||
AECOM | 232,229 | 19,284,296 | ||||||
EMCOR Group, Inc. | 54,688 | 11,505,808 | ||||||
MasTec, Inc.(b) | 110,802 | 7,974,420 |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
MDU Resources Group, Inc. | 362,532 | $ | 7,098,377 | |||||
Quanta Services, Inc. | 187,997 | 35,168,599 | ||||||
Valmont Industries, Inc. | 34,691 | 8,333,125 | ||||||
WillScot Mobile Mini Holdings Corp.(b) | 262,271 | 10,907,851 | ||||||
|
| |||||||
100,272,476 | ||||||||
Construction Materials — 0.7% | ||||||||
Eagle Materials, Inc. | 21,553 | 3,589,006 | ||||||
Martin Marietta Materials, Inc. | 109,544 | 44,965,621 | ||||||
Vulcan Materials Co. | 183,377 | 37,045,821 | ||||||
|
| |||||||
85,600,448 | ||||||||
Consumer Finance — 0.9% | ||||||||
Ally Financial, Inc. | 482,662 | 12,877,422 | ||||||
Credit Acceptance Corp.(a)(b) | 11,536 | 5,307,944 | ||||||
Discover Financial Services | 442,747 | 38,355,173 | ||||||
OneMain Holdings, Inc. | 200,870 | 8,052,878 | ||||||
SLM Corp. | 244,034 | 3,323,743 | ||||||
SoFi Technologies, Inc.(a)(b) | 1,633,602 | 13,052,480 | ||||||
Synchrony Financial | 738,664 | 22,580,959 | ||||||
|
| |||||||
103,550,599 | ||||||||
Consumer Staples Distribution & Retail — 1.6% | ||||||||
Albertsons Cos., Inc., Class A | 677,674 | 15,417,083 | ||||||
BJ’s Wholesale Club Holdings, Inc.(a)(b) | 153,759 | 10,973,780 | ||||||
Casey’s General Stores, Inc. | 56,772 | 15,414,733 | ||||||
Dollar Tree, Inc.(b) | 371,236 | 39,518,072 | ||||||
Grocery Outlet Holding Corp.(a)(b) | 167,916 | 4,844,377 | ||||||
Kroger Co. (The) | 1,160,744 | 51,943,294 | ||||||
Performance Food Group Co.(b) | 143,431 | 8,442,349 | ||||||
U.S. Foods Holding Corp.(b) | 402,811 | 15,991,597 | ||||||
Walgreens Boots Alliance, Inc. | 1,271,299 | 28,273,690 | ||||||
|
| |||||||
190,818,975 | ||||||||
Containers & Packaging — 1.7% | ||||||||
Amcor PLC | 2,625,680 | 24,051,229 | ||||||
AptarGroup, Inc. | 116,494 | 14,566,410 | ||||||
Ardagh Group SA, Class A(b) | 34,751 | 189,567 | ||||||
Ardagh Metal Packaging SA | 17,939 | 56,149 | ||||||
Avery Dennison Corp. | 96,355 | 17,601,168 | ||||||
Ball Corp. | 546,669 | 27,213,183 | ||||||
Berry Global Group, Inc. | 212,593 | 13,161,632 | ||||||
Crown Holdings, Inc. | 188,659 | 16,692,548 | ||||||
Graphic Packaging Holding Co. | 255,264 | 5,687,282 | ||||||
International Paper Co. | 614,431 | 21,793,867 | ||||||
Packaging Corp. of America | 156,973 | 24,103,204 | ||||||
Sealed Air Corp. | 113,422 | 3,727,047 | ||||||
Silgan Holdings, Inc. | 150,064 | 6,469,259 | ||||||
Sonoco Products Co. | 172,522 | 9,376,571 | ||||||
Westrock Co. | 449,415 | 16,089,057 | ||||||
|
| |||||||
200,778,173 | ||||||||
Distributors — 0.5% | ||||||||
Genuine Parts Co. | 248,905 | 35,936,904 | ||||||
LKQ Corp. | 472,446 | 23,390,801 | ||||||
|
| |||||||
59,327,705 | ||||||||
Diversified Consumer Services — 0.2% | ||||||||
ADT, Inc. | 370,872 | 2,225,232 | ||||||
Bright Horizons Family Solutions, Inc.(b) | 90,129 | 7,341,908 | ||||||
Grand Canyon Education, Inc.(b) | 38,478 | 4,497,309 | ||||||
H&R Block, Inc. | 94,320 | 4,061,419 | ||||||
Mister Car Wash, Inc.(a)(b) | 132,091 | 727,821 | ||||||
Service Corp. International | 166,533 | 9,515,696 | ||||||
|
| |||||||
28,369,385 |
34 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Consumer Services (continued) | ||||||||
WP Carey, Inc. | 375,930 | $ | 20,330,294 | |||||
|
| |||||||
Diversified Telecommunication Services — 0.1% | ||||||||
Frontier Communications Parent, Inc.(a)(b) | 439,084 | 6,871,665 | ||||||
GCI Liberty, Inc. Escrow, Class A(b)(c) | 193,912 | 2 | ||||||
Iridium Communications, Inc. | 14,086 | 640,772 | ||||||
|
| |||||||
7,512,439 | ||||||||
Electric Utilities — 3.8% | ||||||||
Alliant Energy Corp. | 445,819 | 21,599,930 | ||||||
Avangrid, Inc. | 125,386 | 3,782,896 | ||||||
Constellation Energy Corp. | 582,618 | 63,551,971 | ||||||
Edison International | 670,827 | 42,456,641 | ||||||
Entergy Corp. | 375,630 | 34,745,775 | ||||||
Evergy, Inc. | 395,094 | 20,031,266 | ||||||
Eversource Energy | 618,633 | 35,973,509 | ||||||
FirstEnergy Corp. | 966,448 | 33,033,193 | ||||||
Hawaiian Electric Industries, Inc.(a) | 196,844 | 2,423,150 | ||||||
IDACORP, Inc. | 89,103 | 8,344,496 | ||||||
NRG Energy, Inc. | 410,741 | 15,821,743 | ||||||
OGE Energy Corp. | 356,317 | 11,876,046 | ||||||
PG&E Corp.(b) | 3,551,343 | 57,283,162 | ||||||
Pinnacle West Capital Corp. | 201,357 | 14,835,984 | ||||||
PPL Corp. | 1,314,741 | 30,975,298 | ||||||
Xcel Energy, Inc. | 980,011 | 56,076,229 | ||||||
|
| |||||||
452,811,289 | ||||||||
Electrical Equipment — 1.4% | ||||||||
Acuity Brands, Inc. | 55,659 | 9,479,284 | ||||||
AMETEK, Inc. | 408,996 | 60,433,249 | ||||||
Generac Holdings, Inc.(a)(b) | 108,169 | 11,786,094 | ||||||
Hubbell, Inc. | 51,715 | 16,207,998 | ||||||
nVent Electric PLC | 290,951 | 15,417,494 | ||||||
Plug Power, Inc.(a)(b) | 944,620 | 7,179,112 | ||||||
Regal Rexnord Corp. | 117,547 | 16,795,115 | ||||||
Sensata Technologies Holding PLC | 269,008 | 10,173,883 | ||||||
Sunrun, Inc.(a)(b) | 378,318 | 4,751,674 | ||||||
Vertiv Holdings Co., Class A | 564,481 | 20,998,693 | ||||||
|
| |||||||
173,222,596 | ||||||||
Electronic Equipment, Instruments & Components — 2.3% | ||||||||
Amphenol Corp., Class A | 514,376 | 43,202,440 | ||||||
Arrow Electronics, Inc.(a)(b) | 102,021 | 12,777,110 | ||||||
Avnet, Inc. | 162,916 | 7,850,922 | ||||||
CDW Corp. | 13,841 | 2,792,560 | ||||||
Cognex Corp. | 307,153 | 13,035,573 | ||||||
Coherent Corp.(a)(b) | 213,749 | 6,976,767 | ||||||
Corning, Inc. | 1,349,845 | 41,129,777 | ||||||
Crane NXT Co. | 84,907 | 4,718,282 | ||||||
IPG Photonics Corp.(b) | 53,849 | 5,467,828 | ||||||
Jabil, Inc. | 84,619 | 10,737,305 | ||||||
Keysight Technologies, Inc.(b) | 234,287 | 30,998,513 | ||||||
Littelfuse, Inc. | 43,125 | 10,665,675 | ||||||
National Instruments Corp. | 50,401 | 3,004,908 | ||||||
TD SYNNEX Corp. | 73,474 | 7,337,114 | ||||||
Teledyne Technologies, Inc.(b) | 82,679 | 33,780,986 | ||||||
Trimble, Inc.(b) | 437,173 | 23,546,138 | ||||||
Vontier Corp. | 182,213 | 5,634,026 | ||||||
Zebra Technologies Corp., Class A(b) | 74,559 | 17,635,440 | ||||||
|
| |||||||
281,291,364 | ||||||||
Energy Equipment & Services — 1.2% | ||||||||
Baker Hughes Co., Class A | 1,801,326 | 63,622,834 | ||||||
Halliburton Co. | 1,276,916 | 51,715,098 |
Security | Shares | Value | ||||||
Energy Equipment & Services (continued) | ||||||||
NOV, Inc. | 699,299 | $ | 14,615,349 | |||||
TechnipFMC PLC | 777,200 | 15,808,248 | ||||||
|
| |||||||
145,761,529 | ||||||||
Entertainment — 1.7% | ||||||||
AMC Entertainment Holdings, Inc., Class A(a)(b) | 104,778 | 837,173 | ||||||
Electronic Arts, Inc. | 487,225 | 58,661,890 | ||||||
Liberty Media Corp. - Liberty Formula One, Class A(b) | 41,520 | 2,347,541 | ||||||
Liberty Media Corp. - Liberty Formula One, Class C(b) | 344,085 | 21,436,495 | ||||||
Liberty Media Corp. - Liberty Live, Class A(b) | 34,137 | 1,089,653 | ||||||
Liberty Media Corp. - Liberty Live, Class C, NVS(b) | 85,385 | 2,740,858 | ||||||
Live Nation Entertainment, Inc.(a)(b) | 215,204 | 17,870,540 | ||||||
Madison Square Garden Sports Corp., Class A | 33,406 | 5,889,478 | ||||||
Playtika Holding Corp.(b) | 5,231 | 50,375 | ||||||
Roku, Inc., Class A(a)(b) | 192,443 | 13,584,551 | ||||||
Take-Two Interactive Software, Inc.(b) | 292,640 | 41,083,730 | ||||||
Warner Bros Discovery, Inc., Class A(a)(b) | 3,910,358 | 42,466,488 | ||||||
|
| |||||||
208,058,772 | ||||||||
Financial Services — 1.7% | ||||||||
Affirm Holdings, Inc., Class A(a)(b) | 392,140 | 8,340,818 | ||||||
Block, Inc., Class A(b) | 606,952 | 26,863,696 | ||||||
Euronet Worldwide, Inc.(b) | 42,896 | 3,405,084 | ||||||
Fidelity National Information Services, Inc. | 1,050,726 | 58,073,626 | ||||||
FleetCor Technologies, Inc.(b) | 9,385 | 2,396,366 | ||||||
Global Payments, Inc. | 465,319 | 53,693,159 | ||||||
Jack Henry & Associates, Inc. | 88,927 | 13,440,427 | ||||||
MGIC Investment Corp. | 508,322 | 8,483,894 | ||||||
Rocket Cos., Inc., Class A(a)(b) | 154,518 | 1,263,957 | ||||||
TFS Financial Corp. | 97,425 | 1,151,564 | ||||||
UWM Holdings Corp., Class A | 126,315 | 612,628 | ||||||
Voya Financial, Inc. | 175,347 | 11,651,808 | ||||||
Western Union Co. (The) | 405,388 | 5,343,014 | ||||||
WEX, Inc.(b) | 40,891 | 7,691,188 | ||||||
|
| |||||||
202,411,229 | ||||||||
Food Products — 2.0% | ||||||||
Bunge Ltd. | 264,946 | 28,680,405 | ||||||
Campbell Soup Co. | 340,266 | 13,978,127 | ||||||
Conagra Brands, Inc. | 847,427 | 23,236,448 | ||||||
Darling Ingredients, Inc.(b) | 281,768 | 14,708,290 | ||||||
Flowers Foods, Inc. | 336,673 | 7,467,407 | ||||||
Freshpet, Inc.(b) | 58,272 | 3,838,959 | ||||||
Hormel Foods Corp. | 513,564 | 19,530,839 | ||||||
Ingredion, Inc. | 117,571 | 11,568,986 | ||||||
J M Smucker Co. (The) | 175,108 | 21,522,524 | ||||||
Kellanova | 462,588 | 27,528,612 | ||||||
Lamb Weston Holdings, Inc. | 14,374 | 1,329,020 | ||||||
McCormick & Co., Inc., NVS | 445,923 | 33,729,616 | ||||||
Pilgrim’s Pride Corp.(b) | 72,477 | 1,654,650 | ||||||
Post Holdings, Inc.(a)(b) | 95,858 | 8,218,865 | ||||||
Seaboard Corp.(a) | 457 | 1,715,121 | ||||||
Tyson Foods, Inc., Class A | 493,020 | 24,892,580 | ||||||
|
| |||||||
243,600,449 | ||||||||
Gas Utilities — 0.4% | ||||||||
Atmos Energy Corp. | 256,698 | 27,192,019 | ||||||
National Fuel Gas Co. | 159,216 | 8,264,903 | ||||||
UGI Corp. | 369,153 | 8,490,519 | ||||||
|
| |||||||
43,947,441 |
SCHEDULES OF INVESTMENTS | 35 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Ground Transportation — 0.8% | ||||||||
Avis Budget Group, Inc.(b) | 24,175 | $ | 4,344,006 | |||||
Hertz Global Holdings, Inc.(a)(b) | 237,287 | 2,906,766 | ||||||
JB Hunt Transport Services, Inc. | 117,272 | 22,108,117 | ||||||
Knight-Swift Transportation Holdings, Inc. | 277,875 | 13,935,431 | ||||||
Landstar System, Inc. | 12,859 | 2,275,272 | ||||||
Old Dominion Freight Line, Inc.(a) | 12,022 | 4,918,681 | ||||||
Ryder System, Inc. | 80,100 | 8,566,695 | ||||||
Saia, Inc.(a)(b) | 42,073 | 16,772,401 | ||||||
Schneider National, Inc., Class B | 96,644 | 2,676,072 | ||||||
U-Haul Holding Co.(b) | 9,759 | 532,549 | ||||||
U-Haul Holding Co., NVS(a) | 110,170 | 5,771,806 | ||||||
XPO, Inc.(b) | 203,106 | 15,163,894 | ||||||
|
| |||||||
99,971,690 | ||||||||
Health Care Equipment & Supplies — 2.0% | ||||||||
Baxter International, Inc. | 897,110 | 33,856,931 | ||||||
Cooper Cos., Inc. (The)(a) | 86,215 | 27,417,232 | ||||||
DENTSPLY SIRONA, Inc. | 376,235 | 12,852,188 | ||||||
Enovis Corp.(b) | 94,746 | 4,995,957 | ||||||
Envista Holdings Corp.(b) | 292,948 | 8,167,390 | ||||||
Globus Medical, Inc., Class A(b) | 150,840 | 7,489,206 | ||||||
Hologic, Inc.(b) | 431,138 | 29,920,977 | ||||||
ICU Medical, Inc.(a)(b) | 36,409 | 4,333,035 | ||||||
Integra LifeSciences Holdings Corp.(b) | 129,058 | 4,928,725 | ||||||
QuidelOrtho Corp.(b) | 95,713 | 6,990,878 | ||||||
STERIS PLC | 176,013 | 38,620,772 | ||||||
Tandem Diabetes Care, Inc.(a)(b) | 98,337 | 2,042,460 | ||||||
Teleflex, Inc. | 83,445 | 16,389,432 | ||||||
Zimmer Biomet Holdings, Inc. | 372,675 | 41,821,589 | ||||||
|
| |||||||
239,826,772 | ||||||||
Health Care Providers & Services — 1.4% | ||||||||
Acadia Healthcare Co., Inc.(b) | 159,890 | 11,241,866 | ||||||
agilon health, Inc.(a)(b) | 59,507 | 1,056,844 | ||||||
Amedisys, Inc.(b) | 56,594 | 5,285,880 | ||||||
Cardinal Health, Inc. | 220,534 | 19,146,762 | ||||||
Chemed Corp. | 7,386 | 3,838,504 | ||||||
Encompass Health Corp. | 162,509 | 10,914,104 | ||||||
Henry Schein, Inc.(b) | 231,216 | 17,167,788 | ||||||
Laboratory Corp. of America Holdings | 157,463 | 31,657,936 | ||||||
Molina Healthcare, Inc.(b) | 46,943 | 15,392,140 | ||||||
Premier, Inc., Class A | 213,925 | 4,599,388 | ||||||
Quest Diagnostics, Inc. | 198,554 | 24,195,791 | ||||||
R1 RCM, Inc.(b) | 269,490 | 4,061,214 | ||||||
Tenet Healthcare Corp.(b) | 179,696 | 11,840,169 | ||||||
Universal Health Services, Inc., Class B | 107,749 | 13,547,282 | ||||||
|
| |||||||
173,945,668 | ||||||||
Health Care REITs — 1.2% | ||||||||
Healthcare Realty Trust, Inc. | 677,062 | 10,338,737 | ||||||
Healthpeak Properties, Inc. | 970,773 | 17,823,392 | ||||||
Medical Properties Trust, Inc. | 1,063,930 | 5,798,419 | ||||||
Omega Healthcare Investors, Inc. | 417,347 | 13,839,227 | ||||||
Ventas, Inc. | 708,972 | 29,868,990 | ||||||
Welltower, Inc. | 883,458 | 72,372,879 | ||||||
|
| |||||||
150,041,644 | ||||||||
Health Care Technology — 0.1% | ||||||||
Certara, Inc.(b) | 134,457 | 1,955,005 | ||||||
Doximity, Inc., Class A(b) | 120,461 | 2,556,182 | ||||||
Teladoc Health, Inc.(a)(b) | 289,019 | 5,372,863 | ||||||
|
| |||||||
9,884,050 |
Security | Shares | Value | ||||||
Hotel & Resort REITs — 0.2% | ||||||||
Host Hotels & Resorts, Inc. | 1,254,347 | $ | 20,157,356 | |||||
Park Hotels & Resorts, Inc. | 380,702 | 4,690,249 | ||||||
|
| |||||||
24,847,605 | ||||||||
Hotels, Restaurants & Leisure — 2.1% | ||||||||
Aramark | 416,397 | 14,448,976 | ||||||
Boyd Gaming Corp. | 131,584 | 8,004,255 | ||||||
Caesars Entertainment, Inc.(b) | 216,760 | 10,046,826 | ||||||
Carnival Corp.(b) | 1,769,962 | 24,283,879 | ||||||
Cava Group, Inc.(a)(b) | 6,506 | 199,279 | ||||||
Darden Restaurants, Inc. | 114,162 | 16,350,282 | ||||||
DoorDash, Inc., Class A(a)(b) | 115,691 | 9,193,964 | ||||||
Expedia Group, Inc.(b) | 69,086 | 7,120,694 | ||||||
Hilton Worldwide Holdings, Inc. | 247,321 | 37,142,668 | ||||||
Hyatt Hotels Corp., Class A | 81,749 | 8,671,934 | ||||||
Marriott Vacations Worldwide Corp. | 65,493 | 6,590,560 | ||||||
MGM Resorts International(a) | 518,517 | 19,060,685 | ||||||
Norwegian Cruise Line Holdings Ltd.(a)(b) | 566,284 | 9,332,360 | ||||||
Penn Entertainment, Inc.(a)(b) | 275,540 | 6,323,643 | ||||||
Planet Fitness, Inc., Class A(b) | 78,677 | 3,869,335 | ||||||
Royal Caribbean Cruises Ltd.(b) | 291,333 | 26,843,423 | ||||||
Travel + Leisure Co. | 71,653 | 2,631,815 | ||||||
Vail Resorts, Inc. | 60,945 | 13,523,086 | ||||||
Wyndham Hotels & Resorts, Inc. | 137,840 | 9,585,393 | ||||||
Wynn Resorts Ltd. | 173,028 | 15,989,517 | ||||||
Yum! Brands, Inc. | 61,297 | 7,658,447 | ||||||
|
| |||||||
256,871,021 | ||||||||
Household Durables — 2.2% | ||||||||
DR Horton, Inc. | 553,388 | 59,472,608 | ||||||
Garmin Ltd. | 272,652 | 28,682,991 | ||||||
Leggett & Platt, Inc. | 238,041 | 6,048,622 | ||||||
Lennar Corp., Class A | 442,475 | 49,658,969 | ||||||
Lennar Corp., Class B | 24,221 | 2,476,113 | ||||||
Mohawk Industries, Inc.(b) | 94,579 | 8,115,824 | ||||||
Newell Brands, Inc. | 685,138 | 6,186,796 | ||||||
NVR, Inc.(a)(b) | 4,774 | 28,468,794 | ||||||
PulteGroup, Inc. | 386,921 | 28,651,500 | ||||||
Tempur Sealy International, Inc. | 237,430 | 10,290,216 | ||||||
Toll Brothers, Inc. | 192,754 | 14,256,086 | ||||||
TopBuild Corp.(b) | 52,749 | 13,271,648 | ||||||
Whirlpool Corp. | 95,278 | 12,738,669 | ||||||
|
| |||||||
268,318,836 | ||||||||
Household Products — 0.1% | ||||||||
Church & Dwight Co., Inc. | 44,868 | 4,111,255 | ||||||
Reynolds Consumer Products, Inc. | 95,820 | 2,455,867 | ||||||
Spectrum Brands Holdings, Inc. | 71,033 | 5,565,435 | ||||||
|
| |||||||
12,132,557 | ||||||||
Independent Power and Renewable Electricity Producers — 0.3% | ||||||||
AES Corp. (The) | 465,399 | 7,074,065 | ||||||
Brookfield Renewable Corp., Class A | 237,527 | 5,686,396 | ||||||
Clearway Energy, Inc., Class A | 61,152 | 1,218,148 | ||||||
Clearway Energy, Inc., Class C | 144,537 | 3,058,403 | ||||||
Vistra Corp. | 462,498 | 15,345,684 | ||||||
|
| |||||||
32,382,696 | ||||||||
Industrial REITs — 0.6% | ||||||||
Americold Realty Trust, Inc. | 480,520 | 14,612,613 | ||||||
EastGroup Properties, Inc. | 78,134 | 13,011,655 | ||||||
First Industrial Realty Trust, Inc. | 235,353 | 11,200,449 | ||||||
Rexford Industrial Realty, Inc. | 367,044 | 18,113,622 | ||||||
STAG Industrial, Inc. | 320,504 | 11,060,593 | ||||||
|
| |||||||
67,998,932 |
36 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance — 6.4% | ||||||||
Aflac, Inc. | 1,069,849 | $ | 82,110,911 | |||||
Allstate Corp. (The) | 466,567 | 51,980,229 | ||||||
American Financial Group, Inc. | 129,446 | 14,455,235 | ||||||
Arch Capital Group Ltd.(b) | 545,011 | 43,442,827 | ||||||
Arthur J. Gallagher & Co. | 355,300 | 80,983,529 | ||||||
Assurant, Inc. | 94,084 | 13,508,581 | ||||||
Assured Guaranty Ltd. | 100,473 | 6,080,626 | ||||||
Axis Capital Holdings Ltd. | 137,502 | 7,750,988 | ||||||
Brighthouse Financial, Inc.(b) | 105,641 | 5,170,070 | ||||||
Brown & Brown, Inc. | 257,151 | 17,959,426 | ||||||
Cincinnati Financial Corp. | 273,474 | 27,973,655 | ||||||
CNA Financial Corp. | 45,917 | 1,806,834 | ||||||
Everest Group Ltd. | 65,746 | 24,435,816 | ||||||
Fidelity National Financial, Inc., Class A | 461,712 | 19,068,705 | ||||||
First American Financial Corp. | 176,834 | 9,989,353 | ||||||
Globe Life, Inc. | 155,839 | 16,944,374 | ||||||
Hanover Insurance Group, Inc. (The) | 63,776 | 7,077,860 | ||||||
Hartford Financial Services Group, Inc. (The) | 540,425 | 38,321,537 | ||||||
Kemper Corp. | 106,158 | 4,461,821 | ||||||
Lincoln National Corp. | 274,769 | 6,784,047 | ||||||
Loews Corp. | 327,852 | 20,756,310 | ||||||
Markel Group, Inc.(a)(b) | 23,316 | 34,332,577 | ||||||
Old Republic International Corp. | 478,890 | 12,901,297 | ||||||
Primerica, Inc. | 22,458 | 4,357,076 | ||||||
Principal Financial Group, Inc. | 428,997 | 30,917,814 | ||||||
Prudential Financial, Inc. | 651,470 | 61,817,988 | ||||||
Reinsurance Group of America, Inc. | 118,224 | 17,164,942 | ||||||
RenaissanceRe Holdings Ltd. | 65,809 | 13,024,917 | ||||||
RLI Corp. | 56,221 | 7,639,872 | ||||||
Unum Group | 349,457 | 17,189,790 | ||||||
W R Berkley Corp. | 359,179 | 22,804,275 | ||||||
White Mountains Insurance Group Ltd.(a) | 4,455 | 6,663,299 | ||||||
Willis Towers Watson PLC | 164,280 | 34,327,949 | ||||||
|
| |||||||
764,204,530 | ||||||||
Interactive Media & Services — 0.1% | ||||||||
IAC, Inc.(b) | 132,091 | 6,656,066 | ||||||
Match Group, Inc.(a)(b) | 48,714 | 1,908,371 | ||||||
TripAdvisor, Inc.(a)(b) | 198,083 | 3,284,216 | ||||||
ZoomInfo Technologies, Inc., Class A(b) | 270,415 | 4,434,806 | ||||||
|
| |||||||
16,283,459 | ||||||||
IT Services — 1.6% | ||||||||
Akamai Technologies, Inc.(b) | 273,015 | 29,087,018 | ||||||
Amdocs Ltd. | 211,034 | 17,830,263 | ||||||
Cognizant Technology Solutions Corp., Class A | 903,361 | 61,193,674 | ||||||
DXC Technology Co.(b) | 374,802 | 7,807,126 | ||||||
GoDaddy, Inc., Class A(b) | 108,913 | 8,111,840 | ||||||
Kyndryl Holdings, Inc.(b) | 404,845 | 6,113,160 | ||||||
Okta, Inc., Class A(b) | 249,869 | 20,366,822 | ||||||
Twilio, Inc., Class A(a)(b) | 251,410 | 14,715,027 | ||||||
VeriSign, Inc.(a)(b) | 152,102 | 30,805,218 | ||||||
|
| |||||||
196,030,148 | ||||||||
Leisure Products — 0.4% | ||||||||
Brunswick Corp. | 115,229 | 9,103,091 | ||||||
Hasbro, Inc. | 232,573 | 15,382,378 | ||||||
Mattel, Inc.(a)(b) | 622,346 | 13,710,282 | ||||||
Polaris, Inc. | 87,734 | 9,136,619 | ||||||
|
| |||||||
47,332,370 | ||||||||
Life Sciences Tools & Services — 1.6% | ||||||||
Agilent Technologies, Inc. | 98,580 | 11,023,216 | ||||||
Avantor, Inc.(a)(b) | 1,197,128 | 25,235,458 | ||||||
Azenta, Inc.(b) | 114,509 | 5,747,207 |
Security | Shares | Value | ||||||
Life Sciences Tools & Services (continued) | ||||||||
Bio-Rad Laboratories, Inc., Class A(b) | 37,418 | $ | 13,412,482 | |||||
Bio-Techne Corp. | 15,649 | 1,065,227 | ||||||
Charles River Laboratories International, Inc.(a)(b) | 90,167 | 17,670,929 | ||||||
Fortrea Holdings, Inc.(b) | 157,202 | 4,494,405 | ||||||
ICON PLC(b) | 123,543 | 30,422,464 | ||||||
Illumina, Inc.(b) | 196,977 | 27,041,003 | ||||||
IQVIA Holdings, Inc.(a)(b) | 24,342 | 4,789,288 | ||||||
Maravai LifeSciences Holdings, Inc., Class A(b) | 81,625 | 816,250 | ||||||
QIAGEN NV(b) | 404,183 | 16,369,411 | ||||||
Repligen Corp.(a)(b) | 54,734 | 8,703,253 | ||||||
Revvity, Inc. | 223,907 | 24,786,505 | ||||||
Sotera Health Co.(a)(b) | 51,765 | 775,440 | ||||||
|
| |||||||
192,352,538 | ||||||||
Machinery — 6.1% | ||||||||
AGCO Corp. | 111,395 | 13,175,801 | ||||||
Allison Transmission Holdings, Inc. | 144,970 | 8,561,928 | ||||||
CNH Industrial NV | 1,734,010 | 20,981,521 | ||||||
Crane Co. | 86,116 | 7,650,546 | ||||||
Cummins, Inc. | 252,177 | 57,612,357 | ||||||
Donaldson Co., Inc. | 127,016 | 7,575,234 | ||||||
Dover Corp. | 247,540 | 34,534,305 | ||||||
Esab Corp. | 101,418 | 7,121,572 | ||||||
Flowserve Corp. | 231,136 | 9,192,279 | ||||||
Fortive Corp.(a) | 627,583 | 46,541,555 | ||||||
Gates Industrial Corp. PLC(b) | 188,577 | 2,189,379 | ||||||
Graco, Inc. | 175,768 | 12,809,972 | ||||||
IDEX Corp. | 123,269 | 25,642,417 | ||||||
Ingersoll Rand, Inc. | 718,271 | 45,768,228 | ||||||
ITT, Inc. | 147,141 | 14,406,575 | ||||||
Lincoln Electric Holdings, Inc. | 6,395 | 1,162,547 | ||||||
Middleby Corp. (The)(b) | 94,722 | 12,124,416 | ||||||
Nordson Corp. | 101,449 | 22,640,373 | ||||||
Oshkosh Corp. | 116,278 | 11,096,410 | ||||||
Otis Worldwide Corp. | 691,934 | 55,569,220 | ||||||
PACCAR, Inc. | 911,444 | 77,490,969 | ||||||
Parker-Hannifin Corp. | 227,136 | 88,474,015 | ||||||
Pentair PLC | 291,701 | 18,887,640 | ||||||
RBC Bearings, Inc.(a)(b) | 49,946 | 11,693,857 | ||||||
Snap-on, Inc. | 92,318 | 23,546,629 | ||||||
Stanley Black & Decker, Inc. | 271,592 | 22,699,659 | ||||||
Timken Co. (The) | 111,897 | 8,223,311 | ||||||
Westinghouse Air Brake Technologies Corp. | 316,405 | 33,624,359 | ||||||
Xylem, Inc. | 370,755 | 33,749,828 | ||||||
|
| |||||||
734,746,902 | ||||||||
Marine Transportation — 0.1% | ||||||||
Kirby Corp.(b) | 105,329 | 8,721,241 | ||||||
|
| |||||||
Media — 1.3% | ||||||||
Cable One, Inc. | 9,427 | 5,803,638 | ||||||
DISH Network Corp., Class A(b) | 436,835 | 2,559,853 | ||||||
Fox Corp., Class A, NVS | 472,766 | 14,750,299 | ||||||
Fox Corp., Class B | 237,090 | 6,847,159 | ||||||
Interpublic Group of Cos., Inc. (The) | 683,374 | 19,585,499 | ||||||
Liberty Broadband Corp., Class A(a)(b) | 23,075 | 2,097,748 | ||||||
Liberty Broadband Corp., Class C, NVS(a)(b) | 164,495 | 15,021,684 | ||||||
Liberty Media Corp. - Liberty SiriusXM, NVS(b) | 273,022 | 6,951,140 | ||||||
Liberty Media Corp. - Liberty SiriusXM, Class A(a)(b) | 134,871 | 3,432,467 | ||||||
New York Times Co. (The), Class A | 288,140 | 11,871,368 | ||||||
News Corp., Class A, NVS | 677,936 | 13,599,396 | ||||||
News Corp., Class B | 205,491 | 4,288,597 | ||||||
Nexstar Media Group, Inc., Class A | 40,418 | 5,794,729 |
SCHEDULES OF INVESTMENTS | 37 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
Omnicom Group, Inc. | 350,103 | $ | 26,075,672 | |||||
Paramount Global, Class A(a) | 13,264 | 209,439 | ||||||
Paramount Global, Class B, NVS | 1,026,057 | 13,236,135 | ||||||
Sirius XM Holdings, Inc.(a) | 1,136,173 | 5,135,502 | ||||||
|
| |||||||
157,260,325 | ||||||||
Metals & Mining — 1.5% | ||||||||
Alcoa Corp. | 317,389 | 9,223,324 | ||||||
Cleveland-Cliffs, Inc.(b) | 904,500 | 14,137,335 | ||||||
MP Materials Corp., Class A(b) | 183,164 | 3,498,432 | ||||||
Nucor Corp. | 447,606 | 69,983,198 | ||||||
Reliance Steel & Aluminum Co. | 103,672 | 27,185,909 | ||||||
Royal Gold, Inc. | 116,811 | 12,420,514 | ||||||
SSR Mining, Inc. | 364,303 | 4,841,587 | ||||||
Steel Dynamics, Inc. | 285,982 | 30,662,990 | ||||||
United States Steel Corp. | 394,856 | 12,824,923 | ||||||
|
| |||||||
184,778,212 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.4% | ||||||||
AGNC Investment Corp. | 1,059,053 | 9,997,460 | ||||||
Annaly Capital Management, Inc. | 877,420 | 16,504,270 | ||||||
Rithm Capital Corp. | 863,760 | 8,024,331 | ||||||
Starwood Property Trust, Inc. | 520,212 | 10,066,102 | ||||||
|
| |||||||
44,592,163 | ||||||||
Multi-Utilities — 2.5% | ||||||||
Ameren Corp. | 464,733 | 34,775,970 | ||||||
CenterPoint Energy, Inc. | 1,119,968 | 30,071,141 | ||||||
CMS Energy Corp. | 517,791 | 27,499,880 | ||||||
Consolidated Edison, Inc. | 617,218 | 52,790,656 | ||||||
DTE Energy Co. | 365,619 | 36,298,654 | ||||||
NiSource, Inc. | 733,484 | 18,102,385 | ||||||
Public Service Enterprise Group, Inc. | 884,682 | 50,347,253 | ||||||
WEC Energy Group, Inc. | 560,050 | 45,112,027 | ||||||
|
| |||||||
294,997,966 | ||||||||
Office REITs — 0.6% | ||||||||
Alexandria Real Estate Equities, Inc. | 304,363 | 30,466,736 | ||||||
Boston Properties, Inc. | 279,074 | 16,599,322 | ||||||
Cousins Properties, Inc. | 272,410 | 5,548,992 | ||||||
Highwoods Properties, Inc. | 183,590 | 3,783,790 | ||||||
Kilroy Realty Corp. | 206,112 | 6,515,200 | ||||||
Vornado Realty Trust | 317,881 | 7,209,541 | ||||||
|
| |||||||
70,123,581 | ||||||||
Oil, Gas & Consumable Fuels — 4.6% | ||||||||
Antero Midstream Corp. | 398,929 | 4,779,169 | ||||||
Antero Resources Corp.(b) | 503,958 | 12,790,454 | ||||||
APA Corp. | 62,437 | 2,566,161 | ||||||
Chesapeake Energy Corp. | 225,051 | 19,406,148 | ||||||
Coterra Energy, Inc. | 1,324,671 | 35,832,351 | ||||||
Devon Energy Corp. | 1,140,096 | 54,382,579 | ||||||
Diamondback Energy, Inc. | 322,277 | 49,914,262 | ||||||
DT Midstream, Inc. | 171,576 | 9,079,802 | ||||||
EQT Corp. | 639,349 | 25,944,783 | ||||||
Hess Corp. | 218,014 | 33,356,142 | ||||||
HF Sinclair Corp. | 251,683 | 14,328,313 | ||||||
Marathon Oil Corp. | 1,102,809 | 29,500,141 | ||||||
ONEOK, Inc. | 749,578 | 47,545,733 | ||||||
Ovintiv, Inc. | 254,948 | 12,127,876 | ||||||
Phillips 66 | 818,975 | 98,399,846 | ||||||
Range Resources Corp. | 417,320 | 13,525,341 | ||||||
Southwestern Energy Co.(b) | 1,956,243 | 12,617,767 | ||||||
Williams Cos., Inc. (The) | 2,165,222 | 72,946,329 | ||||||
|
| |||||||
549,043,197 |
Security | Shares | Value | ||||||
Paper & Forest Products — 0.0% | ||||||||
Louisiana-Pacific Corp. | 115,192 | $ | 6,366,662 | |||||
|
| |||||||
Passenger Airlines — 0.9% | ||||||||
Alaska Air Group, Inc.(b) | 224,280 | 8,316,302 | ||||||
American Airlines Group, Inc.(a)(b) | 728,613 | 9,333,533 | ||||||
Delta Air Lines, Inc. | 1,080,776 | 39,988,712 | ||||||
Southwest Airlines Co. | 1,054,816 | 28,553,869 | ||||||
United Airlines Holdings, Inc.(b) | 579,602 | 24,517,165 | ||||||
|
| |||||||
110,709,581 | ||||||||
Personal Care Products — 0.1% | ||||||||
Coty, Inc., Class A(b) | 645,774 | 7,084,141 | ||||||
Olaplex Holdings, Inc.(b) | 229,903 | 448,311 | ||||||
|
| |||||||
7,532,452 | ||||||||
Pharmaceuticals — 0.7% | ||||||||
Catalent, Inc.(a)(b) | 320,132 | 14,575,610 | ||||||
Elanco Animal Health, Inc.(b) | 866,560 | 9,740,134 | ||||||
Jazz Pharmaceuticals PLC(b) | 52,872 | 6,843,752 | ||||||
Organon & Co. | 456,654 | 7,927,513 | ||||||
Perrigo Co. PLC | 241,710 | 7,722,635 | ||||||
Royalty Pharma PLC, Class A | 658,803 | 17,879,913 | ||||||
Viatris, Inc. | 2,122,524 | 20,928,087 | ||||||
|
| |||||||
85,617,644 | ||||||||
Professional Services — 1.8% | ||||||||
Broadridge Financial Solutions, Inc. | 34,611 | 6,197,100 | ||||||
CACI International, Inc., Class A(b) | 40,219 | 12,625,951 | ||||||
Ceridian HCM Holding, Inc.(a)(b) | 239,868 | 16,275,044 | ||||||
Clarivate PLC(a)(b) | 844,388 | 5,665,843 | ||||||
Concentrix Corp. | 78,985 | 6,327,488 | ||||||
Dun & Bradstreet Holdings, Inc. | 480,495 | 4,800,145 | ||||||
Equifax, Inc.(a) | 66,808 | 12,237,889 | ||||||
FTI Consulting, Inc.(a)(b) | 47,933 | 8,551,727 | ||||||
Genpact Ltd. | 237,965 | 8,614,333 | ||||||
Jacobs Solutions, Inc. | 223,236 | 30,471,714 | ||||||
KBR, Inc. | 151,857 | 8,950,452 | ||||||
Leidos Holdings, Inc. | 242,190 | 22,320,230 | ||||||
ManpowerGroup, Inc. | 90,451 | 6,631,867 | ||||||
Paycor HCM, Inc.(a)(b) | 52,843 | 1,206,406 | ||||||
Robert Half, Inc. | 187,398 | 13,732,525 | ||||||
Science Applications International Corp. | 95,858 | 10,116,853 | ||||||
SS&C Technologies Holdings, Inc. | 385,559 | 20,257,270 | ||||||
TransUnion(a) | 342,550 | 24,591,665 | ||||||
|
| |||||||
219,574,502 | ||||||||
Real Estate Management & Development — 0.9% | ||||||||
CBRE Group, Inc., Class A(a)(b) | 551,394 | 40,725,961 | ||||||
CoStar Group, Inc.(b) | 408,943 | 31,443,627 | ||||||
Howard Hughes Holdings, Inc.(a)(b) | 59,382 | 4,401,988 | ||||||
Jones Lang LaSalle, Inc.(a)(b) | 84,462 | 11,924,345 | ||||||
Zillow Group, Inc., Class A(a)(b) | 99,854 | 4,472,461 | ||||||
Zillow Group, Inc., Class C, NVS(a)(b) | 275,004 | 12,694,184 | ||||||
|
| |||||||
105,662,566 | ||||||||
Residential REITs — 2.2% | ||||||||
American Homes 4 Rent, Class A | 590,734 | 19,901,828 | ||||||
Apartment Income REIT Corp. | 265,039 | 8,136,697 | ||||||
AvalonBay Communities, Inc. | 251,516 | 43,195,358 | ||||||
Camden Property Trust | 184,072 | 17,409,530 | ||||||
Equity LifeStyle Properties, Inc. | 212,119 | 13,514,102 | ||||||
Equity Residential | 663,988 | 38,982,736 | ||||||
Essex Property Trust, Inc. | 113,247 | 24,018,556 | ||||||
Invitation Homes, Inc.(a) | 1,084,587 | 34,370,562 | ||||||
Mid-America Apartment Communities, Inc. | 206,676 | 26,588,867 |
38 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Residential REITs (continued) | ||||||||
Sun Communities, Inc. | 170,508 | $ | 20,177,917 | |||||
UDR, Inc. | 549,529 | 19,601,699 | ||||||
|
| |||||||
265,897,852 | ||||||||
Retail REITs — 1.7% | ||||||||
Agree Realty Corp. | 163,837 | 9,050,356 | ||||||
Brixmor Property Group, Inc. | 534,062 | 11,097,808 | ||||||
Federal Realty Investment Trust | 143,964 | 13,047,457 | ||||||
Kimco Realty Corp. | 1,073,545 | 18,883,657 | ||||||
NNN REIT, Inc. | 323,115 | 11,418,884 | ||||||
Realty Income Corp. | 1,198,143 | 59,835,261 | ||||||
Regency Centers Corp. | 320,540 | 19,052,898 | ||||||
Simon Property Group, Inc. | 451,454 | 48,770,576 | ||||||
Spirit Realty Capital, Inc. | 248,479 | 8,331,501 | ||||||
|
| |||||||
199,488,398 | ||||||||
Semiconductors & Semiconductor Equipment — 2.7% | ||||||||
Cirrus Logic, Inc.(b) | 98,994 | 7,321,596 | ||||||
Entegris, Inc.(a) | 251,004 | 23,571,786 | ||||||
First Solar, Inc.(a)(b) | 188,837 | 30,514,171 | ||||||
GLOBALFOUNDRIES, Inc.(a)(b) | 140,540 | 8,178,023 | ||||||
Marvell Technology, Inc. | 1,519,177 | 82,233,051 | ||||||
Microchip Technology, Inc. | 273,978 | 21,383,983 | ||||||
MKS Instruments, Inc. | 118,314 | 10,238,893 | ||||||
ON Semiconductor Corp.(a)(b) | 766,588 | 71,254,355 | ||||||
Qorvo, Inc.(b) | 173,283 | 16,543,328 | ||||||
Skyworks Solutions, Inc. | 283,026 | 27,903,533 | ||||||
Teradyne, Inc.(a) | 47,109 | 4,732,570 | ||||||
Universal Display Corp. | 45,295 | 7,110,862 | ||||||
Wolfspeed, Inc.(b) | 220,824 | 8,413,394 | ||||||
|
| |||||||
319,399,545 | ||||||||
Software — 1.5% | ||||||||
ANSYS, Inc.(a)(b) | 27,195 | 8,091,872 | ||||||
AppLovin Corp., Class A(b) | 278,179 | 11,116,033 | ||||||
Aspen Technology, Inc.(b) | 49,393 | 10,089,014 | ||||||
Bentley Systems, Inc., Class B(a) | 24,749 | 1,241,410 | ||||||
BILL Holdings, Inc.(a)(b) | 181,960 | 19,755,397 | ||||||
CCC Intelligent Solutions Holdings, Inc.(a)(b) | 355,001 | 4,739,263 | ||||||
Dolby Laboratories, Inc., Class A | 105,948 | 8,397,439 | ||||||
Dropbox, Inc., Class A(a)(b) | 51,299 | 1,396,872 | ||||||
Gen Digital, Inc. | 832,342 | 14,715,807 | ||||||
Guidewire Software, Inc.(a)(b) | 144,145 | 12,973,050 | ||||||
HashiCorp, Inc., Class A(a)(b) | 56,660 | 1,293,548 | ||||||
Informatica, Inc., Class A(a)(b) | 69,103 | 1,456,000 | ||||||
nCino, Inc.(a)(b) | 115,120 | 3,660,816 | ||||||
NCR Corp.(b) | 229,287 | 6,183,870 | ||||||
Nutanix, Inc., Class A(a)(b) | 307,906 | 10,739,761 | ||||||
PTC, Inc.(b) | 97,112 | 13,758,828 | ||||||
SentinelOne, Inc., Class A(a)(b) | 355,269 | 5,989,835 | ||||||
Tyler Technologies, Inc.(a)(b) | 18,226 | 7,037,788 | ||||||
UiPath, Inc., Class A(a)(b) | 154,469 | 2,642,965 | ||||||
Unity Software, Inc.(a)(b) | 310,273 | 9,739,470 | ||||||
Zoom Video Communications, Inc., Class A(a)(b) | 445,245 | 31,140,435 | ||||||
|
| |||||||
186,159,473 | ||||||||
Specialized REITs — 2.6% | ||||||||
CubeSmart | 396,780 | 15,129,221 | ||||||
Digital Realty Trust, Inc. | 530,952 | 64,255,811 | ||||||
EPR Properties | 131,105 | 5,446,102 | ||||||
Extra Space Storage, Inc. | 371,143 | 45,123,566 | ||||||
Gaming & Leisure Properties, Inc. | 446,428 | 20,334,795 | ||||||
Iron Mountain, Inc. | 260,425 | 15,482,266 | ||||||
Lamar Advertising Co., Class A | 35,126 | 2,931,967 | ||||||
National Storage Affiliates Trust | 140,849 | 4,470,547 |
Security | Shares | Value | ||||||
Specialized REITs (continued) | ||||||||
Rayonier, Inc. | 263,075 | $ | 7,487,115 | |||||
SBA Communications Corp., Class A | 171,332 | 34,295,526 | ||||||
VICI Properties, Inc. | 1,785,698 | 51,963,812 | ||||||
Weyerhaeuser Co. | 1,303,572 | 39,967,518 | ||||||
|
| |||||||
306,888,246 | ||||||||
Specialty Retail — 1.3% | ||||||||
Advance Auto Parts, Inc. | 106,575 | 5,960,740 | ||||||
AutoNation, Inc.(b) | 52,446 | 7,940,324 | ||||||
Bath & Body Works, Inc. | 407,647 | 13,778,469 | ||||||
Best Buy Co., Inc. | 298,276 | 20,721,234 | ||||||
CarMax, Inc.(a)(b) | 264,533 | 18,710,419 | ||||||
Dick’s Sporting Goods, Inc. | 99,213 | 10,772,548 | ||||||
GameStop Corp., Class A(a)(b) | 479,577 | 7,893,837 | ||||||
Gap, Inc. (The) | 342,956 | 3,645,622 | ||||||
Lithia Motors, Inc., Class A(a) | 48,168 | 14,225,455 | ||||||
Murphy U.S.A., Inc. | 1,841 | 629,125 | ||||||
Penske Automotive Group, Inc.(a) | 36,107 | 6,032,035 | ||||||
Petco Health & Wellness Co., Inc.(a)(b) | 157,675 | 644,891 | ||||||
RH(a)(b) | 25,735 | 6,803,305 | ||||||
Ross Stores, Inc. | 39,730 | 4,487,504 | ||||||
Valvoline, Inc.(a) | 217,759 | 7,020,550 | ||||||
Victoria’s Secret & Co.(a)(b) | 76,457 | 1,275,303 | ||||||
Wayfair, Inc., Class A(b) | 96,034 | 5,816,779 | ||||||
Williams-Sonoma, Inc. | 98,896 | 15,368,438 | ||||||
|
| |||||||
151,726,578 | ||||||||
Technology Hardware, Storage & Peripherals — 1.0% | ||||||||
Hewlett Packard Enterprise Co. | 2,302,325 | 39,991,385 | ||||||
HP, Inc. | 1,220,645 | 31,370,577 | ||||||
NetApp, Inc. | 226,298 | 17,171,492 | ||||||
Pure Storage, Inc., Class A(b) | 108,045 | 3,848,563 | ||||||
Western Digital Corp.(b) | 566,852 | 25,865,457 | ||||||
|
| |||||||
118,247,474 | ||||||||
Textiles, Apparel & Luxury Goods — 0.6% | ||||||||
Capri Holdings Ltd.(b) | 201,361 | 10,593,602 | ||||||
Carter’s, Inc. | 64,960 | 4,491,984 | ||||||
Columbia Sportswear Co. | 63,102 | 4,675,858 | ||||||
PVH Corp. | 111,576 | 8,536,680 | ||||||
Ralph Lauren Corp., Class A | 71,199 | 8,265,492 | ||||||
Skechers U.S.A., Inc., Class A(b) | 220,595 | 10,798,125 | ||||||
Tapestry, Inc. | 392,701 | 11,290,154 | ||||||
Under Armour, Inc., Class A(a)(b) | 332,651 | 2,278,659 | ||||||
Under Armour, Inc., Class C, NVS(b) | 360,379 | 2,299,218 | ||||||
VF Corp. | 623,549 | 11,018,111 | ||||||
|
| |||||||
74,247,883 | ||||||||
Trading Companies & Distributors — 1.4% | ||||||||
Air Lease Corp., Class A | 185,542 | 7,312,210 | ||||||
Core & Main, Inc., Class A(a)(b) | 192,118 | 5,542,604 | ||||||
Fastenal Co. | 255,168 | 13,942,379 | ||||||
Ferguson PLC | 346,429 | 56,977,178 | ||||||
MSC Industrial Direct Co., Inc., Class A | 82,300 | 8,077,745 | ||||||
SiteOne Landscape Supply, Inc.(a)(b) | 53,960 | 8,819,762 | ||||||
United Rentals, Inc. | 96,797 | 43,033,042 | ||||||
Watsco, Inc. | 44,347 | 16,750,749 | ||||||
WESCO International, Inc. | 78,791 | 11,331,722 | ||||||
|
| |||||||
171,787,391 |
SCHEDULES OF INVESTMENTS | 39 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Water Utilities — 0.5% | ||||||||
American Water Works Co., Inc.(a) | 345,812 | $ | 42,821,900 | |||||
Essential Utilities, Inc. | 430,678 | 14,785,176 | ||||||
|
| |||||||
57,607,076 | ||||||||
|
| |||||||
Total Long-Term Investments — 99.7% | 11,982,422,963 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 4.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) | 476,647,211 | 476,837,870 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e) | 72,576,287 | 72,576,287 | ||||||
|
| |||||||
Total Short-Term Securities — 4.6% | 549,414,157 | |||||||
|
| |||||||
Total Investments — 104.3% | 12,531,837,120 | |||||||
Liabilities in Excess of Other Assets — (4.3)% | (518,382,741 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 12,013,454,379 | ||||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Non-income producing security. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period end. |
(f) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at | Income | Capital Gain | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 389,623,363 | $ | 87,164,458 | (a) | $ | — | $ | 23,156 | $ | 26,893 | $ | 476,837,870 | 476,647,211 | $ | 4,126,594 | (b) | $ | — | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 12,494,031 | 60,082,256 | (a) | — | — | — | 72,576,287 | 72,576,287 | 495,098 | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
$ | 23,156 | $ | 26,893 | $ | 549,414,157 | $ | 4,621,692 | $ | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
40 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
S&P 500 E-Mini Index | 22 | 12/15/23 | $ | 4,758 | $ | (136,936 | ) | |||||||||
S&P Mid 400 E-Mini Index | 92 | 12/15/23 | 23,188 | (510,252 | ) | |||||||||||
|
| |||||||||||||||
$ | (647,188 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 647,188 | $ | — | $ | — | $ | — | $ | 647,188 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 2,494,807 | $ | — | $ | — | $ | — | $ | 2,494,807 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (1,623,721 | ) | $ | — | $ | — | $ | — | $ | (1,623,721 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts | ||||
Average notional value of contracts — long | $ | 26,793,390 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
SCHEDULES OF INVESTMENTS | 41 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Russell Mid-Cap Value ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 11,982,233,394 | $ | 189,567 | $ | 2 | $ | 11,982,422,963 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 549,414,157 | — | — | 549,414,157 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 12,531,647,551 | $ | 189,567 | $ | 2 | $ | 12,531,837,120 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (647,188 | ) | $ | — | $ | — | $ | (647,188 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
42 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares Russell 3000 ETF | iShares Russell Mid-Cap Value ETF | |||||||
ASSETS | ||||||||
Investments, at value — unaffiliated(a)(b) | $ | 10,968,653,944 | $ | 11,982,422,963 | ||||
Investments, at value — affiliated(c) | 338,573,688 | 549,414,157 | ||||||
Cash | 1,184,772 | 8,210,411 | ||||||
Cash pledged: | ||||||||
Futures contracts | 1,439,459 | 1,746,590 | ||||||
Receivables: | ||||||||
Investments sold | 3,269,490 | 32,848,090 | ||||||
Securities lending income — affiliated | 167,137 | 477,114 | ||||||
Dividends — unaffiliated | 7,664,830 | 17,861,996 | ||||||
Dividends — affiliated | 85,619 | 98,423 | ||||||
|
|
|
| |||||
Total assets | 11,321,038,939 | 12,593,079,744 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Collateral on securities loaned | 251,801,066 | 476,377,039 | ||||||
Payables: | ||||||||
Investments purchased | 3,269,490 | 32,848,090 | ||||||
Capital shares redeemed | 2 | 423,931 | ||||||
Income dividend distributions | 45,434,096 | 67,472,908 | ||||||
Investment advisory fees | 1,873,072 | 2,388,728 | ||||||
Other accrued expenses | 628 | 269 | ||||||
Variation margin on futures contracts | 75,150 | 114,400 | ||||||
|
|
|
| |||||
Total liabilities | 302,453,504 | 579,625,365 | ||||||
|
|
|
| |||||
Commitments and contingent liabilities | ||||||||
NET ASSETS | $ | 11,018,585,435 | $ | 12,013,454,379 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 8,648,161,324 | $ | 12,221,234,523 | ||||
Accumulated earnings (loss) | 2,370,424,111 | (207,780,144 | ) | |||||
|
|
|
| |||||
NET ASSETS | $ | 11,018,585,435 | $ | 12,013,454,379 | ||||
|
|
|
| |||||
NET ASSET VALUE | ||||||||
Shares outstanding | $ | 44,950,000 | $ | 115,150,000 | ||||
|
|
|
| |||||
Net asset value | $ | 245.13 | $ | 104.33 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Investments, at cost — unaffiliated | $ | 8,389,599,938 | $ | 11,572,338,489 | ||||
(b) Securities loaned, at value | $ | 245,725,349 | $ | 463,284,712 | ||||
(c) Investments, at cost — affiliated | $ | 334,365,982 | $ | 549,119,567 |
See notes to financial statements.
FINANCIAL STATEMENTS | 43 |
Statements of of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Russell 3000 ETF | iShares Russell Mid-Cap Value ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — unaffiliated | $ | 86,593,961 | $ | 132,056,615 | ||||
Dividends — affiliated | 868,854 | 495,098 | ||||||
Securities lending income — affiliated — net | 1,235,977 | 4,126,594 | ||||||
Foreign taxes withheld | (17,451 | ) | (55,645 | ) | ||||
|
|
|
| |||||
Total investment income | 88,681,341 | 136,622,662 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory | 11,200,166 | 14,761,498 | ||||||
Interest expense | 1,388 | 890 | ||||||
|
|
|
| |||||
Total expenses | 11,201,554 | 14,762,388 | ||||||
|
|
|
| |||||
Net investment income | 77,479,787 | 121,860,274 | ||||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — unaffiliated | (36,981,601 | ) | (196,587,314 | ) | ||||
Investments — affiliated | (35,000 | ) | 23,156 | |||||
Futures contracts | 2,741,924 | 2,494,807 | ||||||
In-kind redemptions — unaffiliated(a) | 151,144,890 | 379,829,290 | ||||||
In-kind redemptions — affiliated(a) | 319,194 | — | ||||||
|
|
|
| |||||
117,189,407 | 185,759,939 | |||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — unaffiliated | 318,541,696 | (433,061,782 | ) | |||||
Investments — affiliated | (1,141,055 | ) | 26,893 | |||||
Futures contracts | (1,898,609 | ) | (1,623,721 | ) | ||||
|
|
|
| |||||
315,502,032 | (434,658,610 | ) | ||||||
|
|
|
| |||||
Net realized and unrealized gain (loss) | 432,691,439 | (248,898,671 | ) | |||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 510,171,226 | $ | (127,038,397 | ) | |||
|
|
|
|
(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
44 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Changes in Net Assets
iShares Russell 3000 ETF | iShares Russell Mid-Cap Value ETF | |||||||||||||||
|
|
|
| |||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 77,479,787 | $ | 155,324,323 | $ | 121,860,274 | $ | 248,398,209 | ||||||||
Net realized gain | 117,189,407 | 634,014,810 | 185,759,939 | 778,558,349 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 315,502,032 | (1,800,920,907 | ) | (434,658,610 | ) | (2,368,540,120 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 510,171,226 | (1,011,581,774 | ) | (127,038,397 | ) | (1,341,583,562 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (74,482,091 | ) | (161,314,568 | ) | (112,252,595 | ) | (252,968,676 | ) | ||||||||
�� |
|
|
|
|
|
|
|
| ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | (145,007,232 | ) | (116,682,684 | ) | (423,380,272 | ) | (637,067,384 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 290,681,903 | (1,289,579,026 | ) | (662,671,264 | ) | (2,231,619,622 | ) | |||||||||
Beginning of period | 10,727,903,532 | 12,017,482,558 | 12,676,125,643 | 14,907,745,265 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 11,018,585,435 | $ | 10,727,903,532 | $ | 12,013,454,379 | $ | 12,676,125,643 | ||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 45 |
(For a share outstanding throughout each period)
iShares Russell 3000 ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 235.52 | $ | 262.10 | $ | 237.19 | $ | 148.31 | $ | 166.74 | $ | 156.30 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.72 | 3.37 | 2.87 | 2.73 | 2.91 | 2.78 | ||||||||||||||||||
Net realized and unrealized gain(b) | 9.54 | (26.44 | ) | 25.00 | 89.03 | (18.04 | ) | 10.52 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase from investment operations | 11.26 | (23.07 | ) | 27.87 | 91.76 | (15.13 | ) | 13.30 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(c) | (1.65 | ) | (3.51 | ) | (2.96 | ) | (2.88 | ) | (3.30 | ) | (2.86 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 245.13 | $ | 235.52 | $ | 262.10 | $ | 237.19 | $ | 148.31 | $ | 166.74 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 4.79 | %(e) | (8.72 | )% | 11.75 | % | 62.21 | % | (9.29 | )% | 8.59 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.20 | %(g) | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.38 | %(g) | 1.47 | % | 1.10 | % | 1.37 | % | 1.69 | % | 1.72 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 11,018,585 | $ | 10,727,904 | $ | 12,017,483 | $ | 10,958,347 | $ | 8,230,988 | $ | 9,379,045 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h) | 2 | % | 4 | % | 5 | % | 4 | % | 5 | % | 5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
46 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Russell Mid-Cap Value ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 106.21 | $ | 119.55 | $ | 109.15 | $ | 64.10 | $ | 86.86 | $ | 86.44 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.04 | 2.04 | 1.62 | 1.43 | 1.93 | 1.67 | ||||||||||||||||||
Net realized and unrealized gain(b) | (1.95 | ) | (13.31 | ) | 10.55 | 45.22 | (22.63 | ) | 0.70 | |||||||||||||||
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Net increase from investment operations | (0.91 | ) | (11.27 | ) | 12.17 | 46.65 | (20.70 | ) | 2.37 | |||||||||||||||
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Distributions from net investment income(c) | (0.97 | ) | (2.07 | ) | (1.77 | ) | (1.60 | ) | (2.06 | ) | (1.95 | ) | ||||||||||||
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Net asset value, end of period | $ | 104.33 | $ | 106.21 | $ | 119.55 | $ | 109.15 | $ | 64.10 | $ | 86.86 | ||||||||||||
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Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | (0.86 | )%(e) | (9.37 | )% | 11.19 | % | 73.40 | % | (24.28 | )% | 2.78 | % | ||||||||||||
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Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.23 | %(g) | 0.23 | % | 0.23 | % | 0.23 | % | 0.24 | % | 0.24 | % | ||||||||||||
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Net investment income | 1.93 | %(g) | 1.88 | % | 1.39 | % | 1.65 | % | 2.18 | % | 1.93 | % | ||||||||||||
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Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 12,013,454 | $ | 12,676,126 | $ | 14,907,745 | $ | 13,120,026 | $ | 8,201,945 | $ | 11,218,007 | ||||||||||||
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Portfolio turnover rate(h) | 17 | % | 19 | % | 21 | % | 25 | % | 20 | % | 25 | % | ||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 47 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
| ||||
iShares ETF | Diversification Classification | |||
| ||||
Russell 3000 | Diversified | |||
Russell Mid-Cap Value | Diversified | |||
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2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
48 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy
NOTES TO FINANCIAL STATEMENTS | 49 |
Notes to Financial Statements (unaudited) (continued)
or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | | Securities Loaned at Value | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received, at Fair Value | (a) | | Net Amount | | ||||
Russell 3000 | ||||||||||||||||
Barclays Bank PLC | $ | 20,332,857 | $ | (20,332,857 | ) | $ | — | $ | — | |||||||
Barclays Capital, Inc. | 9,450 | (9,450 | ) | — | — | |||||||||||
BMO Capital Markets Corp. | 217 | (217 | ) | — | — | |||||||||||
BNP Paribas SA | 24,800,564 | (24,800,564 | ) | — | — | |||||||||||
BofA Securities, Inc. | 9,067,639 | (9,067,639 | ) | — | — | |||||||||||
Citadel Clearing LLC | 2,809,191 | (2,809,191 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 7,637,911 | (7,637,911 | ) | — | — | |||||||||||
Credit Suisse Securities (USA) LLC | 6,900 | (6,900 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 23,773,335 | (23,773,335 | ) | — | — | |||||||||||
HSBC Bank PLC | 12,464,907 | (12,464,907 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 33,456,786 | (33,456,786 | ) | — | — | |||||||||||
Jefferies LLC | 1,155,961 | (1,155,961 | ) | — | — | |||||||||||
Morgan Stanley | 19,322,545 | (19,322,545 | ) | — | — | |||||||||||
National Financial Services LLC | 2,291,118 | (2,291,118 | ) | — | — | |||||||||||
Natixis SA | 1,092,381 | (1,092,381 | ) | — | — | |||||||||||
Pershing LLC | 61,141 | (61,141 | ) | — | — | |||||||||||
RBC Capital Market LLC | 24,658,227 | (24,658,227 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. | 16,134,849 | (16,134,849 | ) | — | — | |||||||||||
Scotia Capital, Inc. | 13,193,330 | (13,193,330 | ) | — | — | |||||||||||
SG Americas Securities LLC | 249,898 | (249,898 | ) | — | — | |||||||||||
State Street Bank & Trust Co. | 157,129 | (157,129 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 17,520,795 | (17,520,795 | ) | — | — | |||||||||||
UBS AG | 10,207,818 | (10,207,818 | ) | — | — | |||||||||||
UBS Securities LLC | 594,348 | (594,348 | ) | — | — | |||||||||||
Virtu Americas LLC | 674,283 | (674,283 | ) | — | — | |||||||||||
Wells Fargo Bank N.A | 3,427,570 | (3,427,570 | ) | — | — | |||||||||||
Wells Fargo Securities LLC | 624,199 | (624,199 | ) | — | — | |||||||||||
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$ | 245,725,349 | $ | (245,725,349 | ) | $ | — | $ | — | ||||||||
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Russell Mid-Cap Value | ||||||||||||||||
Barclays Bank PLC | $ | 30,959,405 | $ | (30,959,405 | ) | $ | — | $ | — | |||||||
Barclays Capital, Inc. | 432,701 | (432,701 | ) | — | — | |||||||||||
BMO Capital Markets Corp. | 82,613 | (82,613 | ) | — | — | |||||||||||
BNP Paribas SA | 66,185,873 | (66,185,873 | ) | — | — | |||||||||||
BofA Securities, Inc. | 24,906,843 | (24,906,843 | ) | — | — | |||||||||||
Citadel Clearing LLC | 5,302,671 | (5,302,671 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 28,315,980 | (28,315,980 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 30,780,357 | (30,780,357 | ) | — | — | |||||||||||
HSBC Bank PLC | 6,584,900 | (6,584,900 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 30,386,457 | (30,386,457 | ) | — | — | |||||||||||
Jefferies LLC | 1,739,725 | (1,739,725 | ) | — | — | |||||||||||
Morgan Stanley | 54,673,284 | (54,673,284 | ) | — | — | |||||||||||
National Financial Services LLC | 908,290 | (908,290 | ) | — | — | |||||||||||
Natixis SA | 1,124,637 | (1,124,637 | ) | — | — | |||||||||||
Nomura Securities International, Inc. | 1,220,021 | (1,220,021 | ) | — | — | |||||||||||
RBC Capital Market LLC | 21,028,327 | (21,028,327 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. | 15,864,564 | (15,864,564 | ) | — | — | |||||||||||
Scotia Capital, Inc. | 78,106,355 | (78,106,355 | ) | — | — | |||||||||||
SG Americas Securities LLC | 1,134,490 | (1,134,490 | ) | — | — | |||||||||||
State Street Bank & Trust Co. | 70,750 | (70,750 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 22,425,207 | (22,425,207 | ) | — | — | |||||||||||
UBS AG | 25,874,806 | (25,874,806 | ) | — | — | |||||||||||
UBS Securities LLC | 3,885,953 | (3,885,953 | ) | — | — | |||||||||||
Virtu Americas LLC | 1,198,299 | (1,198,299 | ) | — | — | |||||||||||
Wells Fargo Bank N.A | 4,988,496 | (4,988,496 | ) | — | — | |||||||||||
Wells Fargo Securities LLC | 5,103,708 | (5,103,708 | ) | — | — | |||||||||||
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$ | 463,284,712 | $ | (463,284,712 | ) | $ | — | $ | — | ||||||||
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(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities. |
50 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the following fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund, as follows:
iShares ETF | Investment Advisory Fees | |
Russell 3000 | 0.20% |
For its investment advisory services to the iShares Russell Mid-Cap Value ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees | |||
First $121 billion | 0.2500 | % | ||
Over $121 billion, up to and including $181 billion | 0.2375 | |||
Over $181 billion, up to and including $231 billion | 0.2257 | |||
Over $231 billion, up to and including $281 billion | 0.2144 | |||
Over $281 billion | 0.2037 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
NOTES TO FINANCIAL STATEMENTS | 51 |
Notes to Financial Statements (unaudited) (continued)
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
| ||||
iShares ETF | Amounts | |||
| ||||
Russell 3000 | $ | 341,885 | ||
Russell Mid-Cap Value | 1,057,788 | |||
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Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
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iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
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Russell 3000 | $ | 19,271,447 | $ | 31,611,984 | $ | (4,366,465) | ||||||
Russell Mid-Cap Value | 1,366,197,770 | 998,075,828 | (5,666,041) | |||||||||
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Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
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iShares ETF | Purchases | Sales | ||||||
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Russell 3000 | $ | 205,032,654 | $ | 200,527,348 | ||||
Russell Mid-Cap Value | 2,157,147,112 | 2,145,628,095 | ||||||
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For the six months ended September 30, 2023, in-kind transactions were as follows:
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iShares ETF | In-kind Purchases | In-kind Sales | ||||||
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Russell 3000 | $ | 159,285,745 | $ | 303,957,460 | ||||
Russell Mid-Cap Value | 1,061,693,436 | 1,487,082,500 | ||||||
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8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
52 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains and qualified late-year losses as follows:
iShares ETF | Non-Expiring Capital Loss Carryforwards | Qualified Late-Year Ordinary Losses | ||||||
Russell 3000 | $ | 262,843,385 | $ | — | ||||
Russell Mid-Cap Value | 701,035,961 | 50,735 | ||||||
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As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
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iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
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Russell 3000 | $ | 8,792,235,765 | $ | 3,372,441,555 | $ | (858,215,334 | ) | $ | 2,514,226,221 | |||||||
Russell Mid-Cap Value | 12,232,020,436 | 1,564,987,815 | (1,265,818,319 | ) | 299,169,496 | |||||||||||
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9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore each Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by each Fund, and each Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Each Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights
NOTES TO FINANCIAL STATEMENTS | 53 |
Notes to Financial Statements (unaudited) (continued)
may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||||||
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||
Russell 3000 | ||||||||||||||||||||
Shares sold | 650,000 | $ | 160,300,439 | 6,250,000 | $ | 1,412,201,639 | ||||||||||||||
Shares redeemed | (1,250,000 | ) | (305,307,671 | ) | (6,550,000 | ) | (1,528,884,323 | ) | ||||||||||||
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(600,000 | ) | $ | (145,007,232 | ) | (300,000 | ) | $ | (116,682,684 | ) | |||||||||||
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Russell Mid-Cap Value | ||||||||||||||||||||
Shares sold | 9,750,000 | $ | 1,069,398,136 | 25,450,000 | $ | 2,683,741,714 | ||||||||||||||
Shares redeemed | (13,950,000 | ) | (1,492,778,408 | ) | (30,800,000 | ) | (3,320,809,098 | ) | ||||||||||||
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(4,200,000 | ) | $ | (423,380,272 | ) | (5,350,000 | ) | $ | (637,067,384 | ) | |||||||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
54 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
iShares Russell 3000 ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the medianofthe investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of the Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 55 |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. Further, with respect to comparisons with one or more open-end index mutual funds registered under the 1940 Act managed by BFA (or an affiliate) that track the same index as the Fund or have a similar investment strategy or mandate, and have investment advisory fee rates and overall expenses (net of any waivers and reimbursements) that are lower than the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) of the Fund, the Board gave weight to management’s explanations of the relevant circumstances applicable to such mutual funds. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
56 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
iShares Russell Mid-Cap Value ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of the Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 57 |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
58 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||
Russell 3000 | $ | 1.654037 | $ | — | $ | — | $ | 1.654037 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||||||
Russell Mid-Cap Value | 0.966699 | — | — | 0.966699 | 100 | — | — | 100 |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
SUPPLEMENTAL INFORMATION | 59 |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
60 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviation
CVR | Contingent Value Rights | |
NVS | Non-Voting Shares | |
REIT | Real Estate Investment Trust | |
S&P | Standard & Poor’s |
GLOSSARY OF TERMS USED IN THIS REPORT | 61 |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE Russell, 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.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-306-0923
SEPTEMBER 30, 2023 |
| 2023 Semi-Annual Report (Unaudited)
|
iShares Trust
· iShares Mortgage Real Estate ETF | REM | Cboe BZX
· iShares Residential and Multisector Real Estate ETF | REZ | NYSE Arca
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023
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6-Month
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12-Month
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U.S. large cap equities | 5.18% | 21.62% | ||||||
U.S. small cap equities | (0.19) | 8.93 | ||||||
International equities | (1.28) | 25.65 | ||||||
Emerging market | (2.05) | 11.70 | ||||||
3-month Treasury bills | 2.50 | 4.47 | ||||||
U.S. Treasury securities | (6.98) | (2.90) | ||||||
U.S. investment grade | (4.05) | 0.64 | ||||||
Tax-exempt municipal | (4.05) | 2.66 | ||||||
U.S. high yield bonds | 2.22 | 10.28 | ||||||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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Fund Summary as of September 30, 2023 | iShares® Mortgage Real Estate ETF |
Investment Objective
The iShares Mortgage Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITs) that hold U.S. residential and commercial mortgages, as represented by the FTSE Nareit All Mortgage Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 7.48 | % | 17.78 | % | (4.47 | )% | 2.33 | % | 17.78 | % | (20.46 | )% | 25.94 | % | ||||||||||||||||||
Fund Market | 7.44 | 17.78 | (4.49 | ) | 2.33 | 17.78 | (20.53 | ) | 25.88 | |||||||||||||||||||||||
Index | 7.84 | 18.97 | (3.80 | ) | 2.95 | 18.97 | (17.60 | ) | 33.69 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||
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Beginning Account Value (04/01/23) | | Ending Account Value (09/30/23) | | | Expenses Paid During | | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
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$ 1,000.00 | $ 1,074.80 | $ 2.49 | $ 1,000.00 | $ 1,022.60 | $ 2.43 | 0.48 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | Percent of Total Investments(a) | |
Mortgage REITs | 100.0% |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |
Annaly Capital Management, Inc. | 16.7% | |
Starwood Property Trust, Inc. | 10.3 | |
AGNC Investment Corp. | 10.1 | |
Rithm Capital Corp. | 8.1 | |
Blackstone Mortgage Trust, Inc., Class A | 4.8 | |
Arbor Realty Trust, Inc. | 4.6 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 4.5 | |
Ready Capital Corp. | 3.6 | |
Apollo Commercial Real Estate Finance, Inc. | 3.2 | |
Two Harbors Investment Corp. | 2.9 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of September 30, 2023 | iShares® Residential and Multisector Real Estate ETF |
Investment Objective
The iShares Residential and Multisector Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. residential, healthcare and self-storage real estate equities, as represented by the FTSE Nareit All Residential Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6-Month Total Returns | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (5.18 | )% | (5.24 | )% | 3.95 | % | 6.84 | % | (5.24 | )% | 21.39 | % | 93.76 | % | ||||||||||||||||||
Fund Market | (5.15 | ) | (5.22 | ) | 3.96 | 6.84 | (5.22 | ) | 21.46 | 93.82 | ||||||||||||||||||||||
Index | (4.93 | ) | (4.78 | ) | 4.38 | 7.24 | (4.78 | ) | 23.90 | 101.23 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ 1,000.00 | $ 948.20 | $ 2.34 | $ 1,000.00 | $ 1,022.60 | $ 2.43 | 0.48 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | Percent of Total Investments(a) | |
Residential REITs | 49.8% | |
Health Care REITs | 28.9 | |
Specialized REITs | 21.3 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |
Public Storage | 10.9% | |
Welltower, Inc. | 10.8 | |
Extra Space Storage, Inc. | 6.7 | |
AvalonBay Communities, Inc. | 6.4 | |
Equity Residential | 5.8 | |
Invitation Homes, Inc. | 5.1 | |
Ventas, Inc. | 4.7 | |
Sun Communities, Inc. | 4.7 | |
Essex Property Trust, Inc. | 4.3 | |
Mid-America Apartment Communities, Inc. | 4.3 |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
6 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Mortgage Real Estate ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Mortgage REITs — 97.6% | ||||||||
AFC Gamma, Inc. | 216,120 | $ | 2,537,249 | |||||
AGNC Investment Corp. | 6,290,378 | 59,381,168 | ||||||
Angel Oak Mortgage REIT, Inc.(a) | 155,867 | 1,329,545 | ||||||
Annaly Capital Management, Inc. | 5,228,676 | 98,351,396 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 1,871,180 | 18,955,053 | ||||||
Arbor Realty Trust, Inc. | 1,759,942 | 26,715,920 | ||||||
Ares Commercial Real Estate Corp. | 685,553 | 6,526,465 | ||||||
ARMOUR Residential REIT, Inc. | 3,018,867 | 12,830,185 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 1,295,094 | 28,168,294 | ||||||
BrightSpire Capital, Inc., Class A | 1,697,719 | 10,627,721 | ||||||
Chicago Atlantic Real Estate Finance, Inc. | 215,858 | 3,177,430 | ||||||
Chimera Investment Corp. | 3,068,410 | 16,753,519 | ||||||
Dynex Capital, Inc. | 712,499 | 8,507,238 | ||||||
Ellington Financial, Inc. | 861,575 | 10,743,840 | ||||||
Franklin BSP Realty Trust, Inc. | 1,096,721 | 14,520,586 | ||||||
Granite Point Mortgage Trust, Inc. | 673,930 | 3,288,778 | ||||||
Great Ajax Corp. | 301,402 | 1,941,029 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) | 1,244,007 | 26,372,948 | ||||||
Invesco Mortgage Capital, Inc. | 553,402 | 5,539,554 | ||||||
KKR Real Estate Finance Trust, Inc. | 777,015 | 9,223,168 | ||||||
Ladder Capital Corp., Class A | 1,494,141 | 15,329,887 | ||||||
MFA Financial, Inc. | 1,348,198 | 12,956,183 | ||||||
New York Mortgage Trust, Inc. | 1,200,509 | 10,192,321 | ||||||
Nexpoint Real Estate Finance, Inc. | 106,391 | 1,740,557 | ||||||
Orchid Island Capital, Inc. | 582,295 | 4,955,330 | ||||||
PennyMac Mortgage Investment Trust | 1,165,816 | 14,456,118 | ||||||
Ready Capital Corp. | 2,110,929 | 21,341,492 |
Security | Shares | Value | ||||||
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Mortgage REITs (continued) | ||||||||
Redwood Trust, Inc. | 1,501,236 | $ | 10,703,813 | |||||
Rithm Capital Corp. | 5,105,064 | 47,426,045 | ||||||
Starwood Property Trust, Inc. | 3,120,248 | 60,376,799 | ||||||
TPG RE Finance Trust, Inc. | 911,152 | 6,132,053 | ||||||
Two Harbors Investment Corp. | 1,281,626 | 16,968,728 | ||||||
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588,070,412 | ||||||||
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Total Long-Term Investments — 97.6% | 588,070,412 | |||||||
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Short-Term Securities | ||||||||
Money Market Funds — 3.0% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(b)(c)(d) | 2,636,881 | 2,637,935 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(c) | 15,174,558 | 15,174,558 | ||||||
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Total Short-Term Securities — 3.0% |
| 17,812,493 | ||||||
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Total Investments — 100.6% |
| 605,882,905 | ||||||
Liabilities in Excess of Other Assets — (0.6)% |
| (3,481,223 | ) | |||||
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Net Assets — 100.0% |
| $ | 602,401,682 | |||||
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(a) | All or a portion of this security is on loan. |
(b) | Affiliate of the Fund. |
(c) | Annualized 7-day yield as of period end. |
(d) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 6,292,932 | $ | — | $ | (3,656,660 | )(a) | $ | 94 | $ | 1,569 | $ | 2,637,935 | 2,636,881 | $ | 305,704 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 498,399 | 14,676,159 | (a) | — | — | — | 15,174,558 | 15,174,558 | 37,343 | — | ||||||||||||||||||||||||||
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$ | 94 | $ | 1,569 | $ | 17,812,493 | $ | 343,047 | $ | — | |||||||||||||||||||||||||||
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(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
SCHEDULES OF INVESTMENTS | 7 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Mortgage Real Estate ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Dow Jones U.S. Real Estate Index | 469 | 12/15/23 | $ | 14,267 | $ | (38,161 | ) | |||||||||
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Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 38,161 | $ | — | $ | — | $ | — | $ | 38,161 | ||||||||||||||
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(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 480,030 | $ | — | $ | — | $ | — | $ | 480,030 | ||||||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (439,645 | ) | $ | — | $ | — | $ | — | $ | (439,645 | ) | ||||||||||||
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Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts | ||||
Average notional value of contracts — long | $ | 14,326,305 | ||
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For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
8 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Mortgage Real Estate ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 588,070,412 | $ | — | $ | — | $ | 588,070,412 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 17,812,493 | — | — | 17,812,493 | ||||||||||||
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$ | 605,882,905 | $ | — | $ | — | $ | 605,882,905 | |||||||||
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Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (38,161 | ) | $ | — | $ | — | $ | (38,161 | ) | ||||||
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(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
SCHEDULES OF INVESTMENTS | 9 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Residential and Multisector Real Estate ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Health Care REITs — 28.8% | ||||||||
CareTrust REIT, Inc. | 189,248 | $ | 3,879,584 | |||||
Community Healthcare Trust, Inc. | 48,222 | 1,432,193 | ||||||
Diversified Healthcare Trust | 451,367 | 875,652 | ||||||
Global Medical REIT, Inc. | 115,211 | 1,033,443 | ||||||
Healthcare Realty Trust, Inc. | 723,559 | 11,048,746 | ||||||
Healthpeak Properties, Inc. | 1,042,544 | 19,141,108 | ||||||
LTC Properties, Inc. | 77,484 | 2,489,561 | ||||||
Medical Properties Trust, Inc. | 1,130,673 | 6,162,168 | ||||||
National Health Investors, Inc. | 78,881 | 4,051,328 | ||||||
Omega Healthcare Investors, Inc. | 446,154 | 14,794,466 | ||||||
Physicians Realty Trust | 449,726 | 5,482,160 | ||||||
Sabra Health Care REIT, Inc. | 437,386 | 6,097,161 | ||||||
Universal Health Realty Income Trust | 24,307 | 982,732 | ||||||
Ventas, Inc. | 644,116 | 27,136,607 | ||||||
Welltower, Inc. | 758,985 | 62,176,051 | ||||||
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166,782,960 | ||||||||
Residential REITs — 49.4% | ||||||||
American Homes 4 Rent, Class A | 634,408 | 21,373,206 | ||||||
Apartment Income REIT Corp. | 281,800 | 8,651,260 | ||||||
Apartment Investment & Management Co., Class A(a) | 280,219 | 1,905,489 | ||||||
AvalonBay Communities, Inc. | 216,437 | 37,170,890 | ||||||
BRT Apartments Corp. | 22,698 | 391,995 | ||||||
Camden Property Trust | 197,683 | 18,696,858 | ||||||
Centerspace | 28,554 | 1,720,664 | ||||||
Elme Communities | 166,061 | 2,265,072 | ||||||
Equity LifeStyle Properties, Inc. | 338,480 | 21,564,561 | ||||||
Equity Residential | 569,634 | 33,443,212 | ||||||
Essex Property Trust, Inc. | 116,826 | 24,777,626 | ||||||
Independence Realty Trust, Inc. | 426,349 | 5,998,730 | ||||||
Invitation Homes, Inc. | 933,322 | 29,576,974 |
Security | Shares | Value | ||||||
| ||||||||
Residential REITs (continued) | ||||||||
Mid-America Apartment Communities, Inc. | 192,338 | $ | 24,744,284 | |||||
NexPoint Residential Trust, Inc. | 42,638 | 1,372,091 | ||||||
Sun Communities, Inc. | 227,503 | 26,922,705 | ||||||
UDR, Inc. | 625,163 | 22,299,564 | ||||||
UMH Properties, Inc. | 105,286 | 1,476,110 | ||||||
Veris Residential, Inc. | 149,478 | 2,466,387 | ||||||
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286,817,678 | ||||||||
Specialized REITs — 21.2% | ||||||||
CubeSmart | 426,108 | 16,247,498 | ||||||
Extra Space Storage, Inc. | 319,381 | 38,830,342 | ||||||
National Storage Affiliates Trust | 152,034 | 4,825,559 | ||||||
Public Storage | 239,334 | 63,069,296 | ||||||
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122,972,695 | ||||||||
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Total Long-Term Investments — 99.4% (Cost: $791,807,422) | 576,573,333 | |||||||
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Short-Term Securities | ||||||||
Money Market Funds — 1.2% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(c) | 6,823,125 | 6,823,125 | ||||||
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Total Short-Term Securities — 1.2% |
| 6,823,125 | ||||||
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Total Investments — 100.6% |
| 583,396,458 | ||||||
Liabilities in Excess of Other Assets — (0.6)% |
| (3,383,682 | ) | |||||
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Net Assets — 100.0% |
| $ | 580,012,776 | |||||
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(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain | |||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | $ | 1,066,711 | $ | 5,756,414 | (a) | $ | — | $ | — | $ | — | $ | 6,823,125 | 6,823,125 | $ | 28,630 | $ | — | ||||||||||||||||||
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(a) | Represents net amount purchased (sold). |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Dow Jones U.S. Real Estate Index | 111 | 12/15/23 | $ | 3,377 | $ | (69,360 | ) | |||||||||
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10 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Residential and Multisector Real Estate ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 69,360 | $ | — | $ | — | $ | — | $ | 69,360 | ||||||||||||||
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(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 8,046 | $ | — | $ | — | $ | — | $ | 8,046 | ||||||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (192,686 | ) | $ | — | $ | — | $ | — | $ | (192,686 | ) | ||||||||||||
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Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 3,625,485 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
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Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 576,573,333 | $ | — | $ | — | $ | 576,573,333 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 6,823,125 | — | — | 6,823,125 | ||||||||||||
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$ | 583,396,458 | $ | — | $ | — | $ | 583,396,458 | |||||||||
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Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (69,360 | ) | $ | — | $ | — | $ | (69,360 | ) | ||||||
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(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
SCHEDULES OF INVESTMENTS | 11 |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares Mortgage Real Estate ETF | iShares Residential and Multisector Real Estate ETF | |||||||||
ASSETS | ||||||||||
Investments, at value — unaffiliated(a)(b) | $ | 588,070,412 | $ | 576,573,333 | ||||||
Investments, at value — affiliated(c) | 17,812,493 | 6,823,125 | ||||||||
Cash | — | 1 | ||||||||
Cash pledged: | ||||||||||
Futures contracts | 944,000 | 194,000 | ||||||||
Receivables: | ||||||||||
Investments sold | 422,687 | — | ||||||||
Securities lending income — affiliated | 26,870 | 3,300 | ||||||||
Capital shares sold | — | 131,256 | ||||||||
Dividends — unaffiliated | 13,123,001 | 2,480,302 | ||||||||
Dividends — affiliated | 10,644 | 5,701 | ||||||||
Variation margin on futures contracts | 34,216 | 6,078 | ||||||||
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Total assets | 620,444,323 | 586,217,096 | ||||||||
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LIABILITIES | ||||||||||
Bank overdraft | 14,240 | — | ||||||||
Collateral on securities loaned | 2,630,645 | — | ||||||||
Payables: | ||||||||||
Investments purchased | 46,880 | — | ||||||||
Capital shares redeemed | 148,857 | — | ||||||||
Income dividend distributions | 14,952,542 | 5,967,614 | ||||||||
Investment advisory fees | 249,477 | 236,706 | ||||||||
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Total liabilities | 18,042,641 | 6,204,320 | ||||||||
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Commitments and contingent liabilities | ||||||||||
NET ASSETS | $ | 602,401,682 | $ | 580,012,776 | ||||||
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NET ASSETS CONSIST OF: | ||||||||||
Paid-in capital | $ | 1,205,300,212 | $ | 834,950,937 | ||||||
Accumulated loss | (602,898,530 | ) | (254,938,161 | ) | ||||||
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NET ASSETS | $ | 602,401,682 | $ | 580,012,776 | ||||||
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NET ASSET VALUE | ||||||||||
Shares outstanding | 26,950,000 | 8,800,000 | ||||||||
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Net asset value | $ | 22.35 | $ | 65.91 | ||||||
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Shares authorized | Unlimited | Unlimited | ||||||||
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Par value | None | None | ||||||||
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(a) Investments, at cost — unaffiliated | $ | 870,168,092 | $ | 791,807,422 | ||||||
(b) Securities loaned, at value | $ | 2,541,482 | $ | — | ||||||
(c) Investments, at cost — affiliated | $ | 17,811,220 | $ | 6,823,125 |
See notes to financial statements.
12 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Mortgage Real Estate ETF | iShares Residential and Multisector Real Estate ETF | |||||||||
INVESTMENT INCOME | ||||||||||
Dividends — unaffiliated | $ | 37,197,970 | $ | 13,254,718 | ||||||
Dividends — affiliated | 37,343 | 28,630 | ||||||||
Securities lending income — affiliated — net | 305,704 | — | ||||||||
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Total investment income | 37,541,017 | 13,283,348 | ||||||||
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EXPENSES | ||||||||||
Investment advisory | 1,467,956 | 1,519,421 | ||||||||
Interest expense | 115 | 1 | ||||||||
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Total expenses | 1,468,071 | 1,519,422 | ||||||||
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Net investment income | 36,072,946 | 11,763,926 | ||||||||
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REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||
Net realized gain (loss) from: | ||||||||||
Investments — unaffiliated | (20,031,442 | ) | (9,992,251 | ) | ||||||
Investments — affiliated | 94 | — | ||||||||
Futures contracts | 480,030 | 8,046 | ||||||||
In-kind redemptions — unaffiliated(a) | 1,831,015 | 1,031,402 | ||||||||
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(17,720,303 | ) | (8,952,803 | ) | |||||||
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Net change in unrealized appreciation (depreciation) on: | ||||||||||
Investments — unaffiliated | 25,395,419 | (34,152,098 | ) | |||||||
Investments — affiliated | 1,569 | — | ||||||||
Futures contracts | (439,645 | ) | (192,686 | ) | ||||||
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24,957,343 | (34,344,784 | ) | ||||||||
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Net realized and unrealized gain (loss) | 7,237,040 | (43,297,587 | ) | |||||||
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NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 43,309,986 | $ | (31,533,661 | ) | |||||
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(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
FINANCIAL STATEMENTS | 13 |
Statements of Changes in Net Assets
iShares Mortgage Real Estate ETF | iShares Residential and Multisector Real Estate ETF | |||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 36,072,946 | $ | 61,974,466 | $ | 11,763,926 | $ | 17,520,767 | ||||||||
Net realized gain (loss) | (17,720,303 | ) | (61,447,280 | ) | (8,952,803 | ) | 18,185,431 | |||||||||
Net change in unrealized appreciation (depreciation) | 24,957,343 | (242,329,723 | ) | (34,344,784 | ) | (310,781,163 | ) | |||||||||
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Net increase (decrease) in net assets resulting from operations | 43,309,986 | (241,802,537 | ) | (31,533,661 | ) | (275,074,965 | ) | |||||||||
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DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
From net investment income and net realized gain | (29,465,294 | ) | (61,974,466 | ) | (9,402,800 | ) | (24,693,312 | ) | ||||||||
Return of capital | — | (6,144,140 | ) | — | — | |||||||||||
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Decrease in net assets resulting from distributions to shareholders | (29,465,294 | ) | (68,118,606 | ) | (9,402,800 | ) | (24,693,312 | ) | ||||||||
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CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | (5,605,800 | ) | (71,024,623 | ) | (7,392,896 | ) | (360,163,509 | ) | ||||||||
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NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 8,238,892 | (380,945,766 | ) | (48,329,357 | ) | (659,931,786 | ) | |||||||||
Beginning of period | 594,162,790 | 975,108,556 | 628,342,133 | 1,288,273,919 | ||||||||||||
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End of period | $ | 602,401,682 | $ | 594,162,790 | $ | 580,012,776 | $ | 628,342,133 | ||||||||
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(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
14 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
(For a share outstanding throughout each period)
iShares Mortgage Real Estate ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.84 | $ | 32.67 | $ | 35.20 | $ | 18.67 | $ | 43.32 | $ | 42.48 | ||||||||||||
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Net investment income(a) | 1.35 | 2.26 | 0.82 | 1.38 | 2.61 | 3.13 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.27 | (10.57 | ) | (1.27 | ) | 17.37 | (23.51 | ) | 1.52 | |||||||||||||||
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Net increase (decrease) from investment operations | 1.62 | (8.31 | ) | (0.45 | ) | 18.75 | (20.90 | ) | 4.65 | |||||||||||||||
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Distributions(c) | ||||||||||||||||||||||||
From net investment income | (1.11 | ) | (2.29 | ) | (2.08 | ) | (1.34 | ) | (2.60 | ) | (3.08 | ) | ||||||||||||
Return of capital | — | (0.23 | ) | — | (0.88 | ) | (1.15 | ) | (0.73 | ) | ||||||||||||||
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Total distributions | (1.11 | ) | (2.52 | ) | (2.08 | ) | (2.22 | ) | (3.75 | ) | (3.81 | ) | ||||||||||||
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Net asset value, end of period | $ | 22.35 | $ | 21.84 | $ | 32.67 | $ | 35.20 | $ | 18.67 | $ | 43.32 | ||||||||||||
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Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | 7.48 | %(e) | (26.00 | )% | (1.65 | )% | 103.62 | % | (51.80 | )% | 11.46 | % | ||||||||||||
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Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.48 | %(g) | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
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Net investment income | 11.80 | %(g) | 8.57 | % | 2.30 | % | 4.94 | % | 6.16 | % | 7.22 | % | ||||||||||||
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Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 602,402 | $ | 594,163 | $ | 975,109 | $ | 1,513,587 | $ | 593,850 | $ | 1,252,029 | ||||||||||||
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Portfolio turnover rate(h) | 10 | % | 28 | % | 20 | % | 30 | % | 29 | % | 25 | % | ||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 15 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Residential and Multisector Real Estate ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Year Ended 03/31/22 | Year Ended 03/31/21 | Year Ended 03/31/20 | Year Ended 03/31/19 | |||||||||||||||||||
Net asset value, beginning of period | $ | 70.60 | $ | 95.78 | $ | 73.95 | $ | 55.26 | $ | 70.64 | $ | 57.61 | ||||||||||||
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Net investment income(a) | 1.33 | 1.66 | 1.46 | 1.51 | 1.55 | 1.80 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (4.95 | ) | (24.47 | ) | 21.98 | 19.29 | (14.77 | ) | 13.45 | |||||||||||||||
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Net increase (decrease) from investment operations | (3.62 | ) | (22.81 | ) | 23.44 | 20.80 | (13.22 | ) | 15.25 | |||||||||||||||
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Distributions(c) | ||||||||||||||||||||||||
From net investment income | (1.07 | ) | (2.37 | ) | (1.50 | ) | (2.11 | ) | (2.16 | ) | (2.00 | ) | ||||||||||||
From net realized gain | — | — | (0.11 | ) | — | — | (0.22 | ) | ||||||||||||||||
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Total distributions | (1.07 | ) | (2.37 | ) | (1.61 | ) | (2.11 | ) | (2.16 | ) | (2.22 | ) | ||||||||||||
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Net asset value, end of period | $ | 65.91 | $ | 70.60 | $ | 95.78 | $ | 73.95 | $ | 55.26 | $ | 70.64 | ||||||||||||
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Total Return(d) | ||||||||||||||||||||||||
Based on net asset value | (5.18 | )%(e) | (23.84 | )% | 31.85 | % | 38.23 | % | (19.25 | )% | 26.94 | % | ||||||||||||
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Ratios to Average Net Assets(f) | ||||||||||||||||||||||||
Total expenses | 0.48 | %(g) | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
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Net investment income | 3.72 | %(g) | 2.10 | % | 1.64 | % | 2.36 | % | 2.07 | % | 2.81 | % | ||||||||||||
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Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 580,013 | $ | 628,342 | $ | 1,288,274 | $ | 495,459 | $ | 331,559 | $ | 430,875 | ||||||||||||
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Portfolio turnover rate(h) | 6 | % | 18 | % | 8 | % | 7 | % | 12 | % | 10 | % | ||||||||||||
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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) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Where applicable, assumes the reinvestment of distributions. |
(e) | Not annualized. |
(f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
16 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
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iShares ETF | Diversification Classification | |
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Mortgage Real Estate | Non-Diversified | |
Residential and Multisector Real Estate | Non-Diversified | |
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2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income, net realized capital gains and/or return of capital for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
The portion of distributions that exceeds each Fund’s current and accumulated earnings and profits will constitute a non-taxable return of capital. Distributions in excess of each Fund’s minimum distribution requirements, but not in excess of the Fund’s earning and profits, will be taxable to the Fund’s shareholders and will not constitute non-taxable returns of capital. Return of capital distributions will reduce a shareholder’s cost basis and will result in higher capital gains or lower capital losses when each Fund’s shares on which distributions were received are sold. Once a shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gains.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
NOTES TO FINANCIAL STATEMENTS | 17 |
Notes to Financial Statements (unaudited) (continued)
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
18 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | | Securities Loaned at Value |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received, at Fair Value |
(a) | | Net Amount |
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Mortgage Real Estate | ||||||||||||||||
Goldman Sachs & Co. LLC | $ | 1,242,320 | $ | (1,242,320 | ) | $ | — | $ | — | |||||||
J.P. Morgan Securities LLC | 1,299,162 | (1,299,162 | ) | — | — | |||||||||||
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$ | 2,541,482 | $ | (2,541,482 | ) | $ | — | $ | — | ||||||||
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(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |||
Mortgage Real Estate | 0.48 | % | ||
Residential and Multisector Real Estate | 0.48 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The
NOTES TO FINANCIAL STATEMENTS | 19 |
Notes to Financial Statements (unaudited) (continued)
money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
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iShares ETF | Amounts | |||
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Mortgage Real Estate | $ | 74,899 | ||
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Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
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iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
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Mortgage Real Estate | $ | 4,690,552 | $ | 11,284,395 | $ | (4,765,154) | ||||||
Residential and Multisector Real Estate | 14,562,880 | 18,314,789 | (4,019,401) | |||||||||
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Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
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iShares ETF | Purchases | Sales | ||||||
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Mortgage Real Estate | $ | 65,016,619 | $ | 58,450,977 | ||||
Residential and Multisector Real Estate | 40,199,179 | 37,842,303 | ||||||
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For the six months ended September 30, 2023, in-kind transactions were as follows:
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iShares ETF | In-kind Purchases | In-kind Sales | ||||||
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Mortgage Real Estate | $ | 121,936,211 | $ | 127,507,128 | ||||
Residential and Multisector Real Estate | 27,439,439 | 34,624,400 | ||||||
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8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
20 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
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iShares ETF | Non-Expiring Capital Loss Carryforwards | |||
| ||||
Mortgage Real Estate | $ | 276,754,574 | ||
Residential and Multisector Real Estate | 26,817,079 | |||
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As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
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iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Mortgage Real Estate | $ | 920,474,565 | $ | 225,779 | $ | (314,855,600 | ) | $ | (314,629,821 | ) | ||||||
Residential and Multisector Real Estate | 804,739,117 | 348,256 | (221,760,275 | ) | (221,412,019 | ) | ||||||||||
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9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
NOTES TO FINANCIAL STATEMENTS | 21 |
Notes to Financial Statements (unaudited) (continued)
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
The Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Mortgage Real Estate | ||||||||||||||||
Shares sold | 5,700,000 | $ | 130,257,671 | 18,600,000 | $ | 473,627,895 | ||||||||||
Shares redeemed | (5,950,000 | ) | (135,863,471 | ) | (21,250,000 | ) | (544,652,518 | ) | ||||||||
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(250,000 | ) | $ | (5,605,800 | ) | (2,650,000 | ) | $ | (71,024,623 | ) | |||||||
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Residential and Multisector Real Estate | ||||||||||||||||
Shares sold | 400,000 | $ | 27,897,597 | 2,150,000 | $ | 189,986,614 | ||||||||||
Shares redeemed | (500,000 | ) | (35,290,493 | ) | (6,700,000 | ) | (550,150,123 | ) | ||||||||
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(100,000 | ) | $ | (7,392,896 | ) | (4,550,000 | ) | $ | (360,163,509 | ) | |||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
22 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
iShares Mortgage Real Estate ETF, iShares Residential and Multisector Real Estate ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 23 |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
24 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||
Mortgage Real Estate(a) | $ | 0.883642 | $ | — | $ | 0.225080 | $ | 1.108722 | 80 | % | — | % | 20 | % | 100 | % | ||||||||||||||||
Residential and Multisector Real Estate | 1.067989 | — | — | 1.067989 | 100 | — | — | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
SUPPLEMENTAL INFORMATION | 25 |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
26 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
REIT | Real Estate Investment Trust |
GLOSSARY OF TERMS USED IN THIS REPORT | 27 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE International Limited, 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.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-312-0923
SEPTEMBER 30, 2023 |
| 2023 Semi-Annual Report (Unaudited)
|
iShares Trust
·
| iShares Factors US Growth Style ETF | STLG | Cboe BZX | |
·
| iShares Factors US Value Style ETF | STLV | Cboe BZX |
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023 | ||||||||||
6-Month | 12-Month | |||||||||
U.S. large cap equities | 5.18 | % | 21.62 | % | ||||||
U.S. small cap equities | (0.19 | ) | 8.93 | |||||||
International equities | (1.28 | ) | 25.65 | |||||||
Emerging market equities (MSCI Emerging Markets Index) | (2.05 | ) | 11.70 | |||||||
3-month Treasury bills | 2.50 | 4.47 | ||||||||
U.S. Treasury securities | (6.98 | ) | (2.90 | ) | ||||||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index) | (4.05 | ) | 0.64 | |||||||
Tax-exempt municipal bonds (Bloomberg Municipal Bond Index) | (4.05 | ) | 2.66 | |||||||
U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index) | 2.22 | 10.28 | ||||||||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index |
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Fund Summary as of September 30, 2023 | iShares® Factors US Growth Style ETF |
Investment Objective
The iShares Factors US Growth Style ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks with favorable exposure to target style factors subject to constraints, as represented by the Russell US Large Cap Factors Growth Style Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
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6-Month Total Returns | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 8.55 | % | 27.15 | % | 11.38 | % | 27.15 | % | 49.23 | % | ||||||||||||||
Fund Market | 8.54 | 27.04 | 11.36 | 27.04 | 49.13 | |||||||||||||||||||
Index | 8.70 | 27.51 | 11.60 | 27.51 | 50.27 |
The inception date of the Fund was 1/14/20. The first day of secondary market trading was 1/16/20.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,085.50 | $ | 1.30 | $ | 1,000.00 | $ | 1,023.75 | $ | 1.26 | 0.25 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION | ||||
Sector | | Percent of Total Investments | (a) | |
Information Technology | 49.7 | % | ||
Consumer Discretionary | 15.7 | |||
Health Care | 9.9 | |||
Industrials | 7.1 | |||
Communication Services | 6.4 | |||
Consumer Staples | 5.7 | |||
Financials | 3.8 | |||
Other (each representing less than 1%) | 1.7 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments | (a) | |
Apple Inc. | 13.1 | % | ||
Microsoft Corp. | 10.4 | |||
NVIDIA Corp. | 5.1 | |||
Amazon.com, Inc. | 4.1 | |||
Meta Platforms, Inc., Class A | 2.5 | |||
Eli Lilly & Co. | 2.4 | |||
TPG, Inc., Class A | 2.3 | |||
Alphabet, Inc., Class A | 2.2 | |||
Tesla, Inc. | 2.1 | |||
Broadcom, Inc. | 2.1 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of September 30, 2023 | iShares® Factors US Value Style ETF |
Investment Objective
The iShares Factors US Value Style ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks with favorable exposure to target style factors subject to constraints, as represented by the Russell US Large Cap Factors Value Style Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
On August 18, 2023, the Board of Trustees of the Fund approved a proposal to close the Fund to purchases and thereafter to liquidate the Fund. Accordingly, effective October 30, 2023, the Fund will no longer accept purchase orders. On or about November 2, 2023 (the “Liquidation Date”), all of the assets of the Fund will be liquidated completely, the shares of any shareholders on the Liquidation Date will be redeemed at the net asset value per share and the Fund will then be terminated as a Series of the Trust.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
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6-Month Total Returns | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 1.72 | % | 14.21 | % | 4.52 | % | 14.21 | % | 17.84 | % | ||||||||||||||
Fund Market | 1.79 | 14.16 | 4.50 | 14.16 | 17.77 | |||||||||||||||||||
Index | 1.88 | 14.45 | 4.68 | 14.45 | 18.53 |
The inception date of the Fund was 1/14/20. The first day of secondary market trading was 1/16/20.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (04/01/23) |
| | Ending Account Value (09/30/23) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,017.20 | $ | 1.26 | $ | 1,000.00 | $ | 1,023.75 | $ | 1.26 | 0.25 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION | ||||
Sector | | Percent of Total Investments | (a) | |
Financials | 23.6 | % | ||
Health Care | 14.2 | |||
Industrials | 12.1 | |||
Information Technology | 10.6 | |||
Consumer Staples | 8.8 | |||
Energy | 7.0 | |||
Communication Services | 6.5 | |||
Consumer Discretionary | 6.2 | |||
Utilities | 5.4 | |||
Materials | 2.9 | |||
Real Estate | 2.7 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments | (a) | |
Johnson & Johnson | 2.9 | % | ||
Merck & Co., Inc. | 2.6 | |||
TPG, Inc., Class A | 2.1 | |||
Evercore, Inc., Class A | 2.1 | |||
Liberty Media Corp. - Liberty Live, Class A | 2.0 | |||
Liberty Media Corp. - Liberty Live, Class C, NVS | 2.0 | |||
Jefferies Financial Group, Inc. | 1.7 | |||
Phinia, Inc. | 1.6 | |||
Pfizer, Inc. | 1.6 | |||
Chesapeake Energy Corp. | 1.5 |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
6 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Factors US Growth Style ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Air Freight & Logistics — 1.7% | ||||||||
Expeditors International of Washington, Inc. | 492 | $ | 56,398 | |||||
United Parcel Service, Inc., Class B | 202 | 31,486 | ||||||
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87,884 | ||||||||
Automobiles — 2.1% | ||||||||
Tesla, Inc.(a) | 453 | 113,350 | ||||||
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Biotechnology — 1.9% | ||||||||
AbbVie, Inc. | 379 | 56,494 | ||||||
Amgen, Inc. | 21 | 5,644 | ||||||
Apellis Pharmaceuticals, Inc.(a) | 121 | 4,603 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 104 | 36,165 | ||||||
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| |||||||
102,906 | ||||||||
Broadline Retail — 4.4% | ||||||||
Amazon.com, Inc.(a) | 1,740 | 221,189 | ||||||
eBay, Inc. | 376 | 16,578 | ||||||
|
| |||||||
237,767 | ||||||||
Capital Markets — 3.4% | ||||||||
Ameriprise Financial, Inc. | 16 | 5,275 | ||||||
MSCI, Inc., Class A | 109 | 55,925 | ||||||
TPG, Inc., Class A | 3,998 | 120,420 | ||||||
|
| |||||||
181,620 | ||||||||
Communications Equipment — 1.7% | ||||||||
Arista Networks, Inc.(a) | 235 | 43,223 | ||||||
Motorola Solutions, Inc. | 183 | 49,820 | ||||||
|
| |||||||
93,043 | ||||||||
Construction & Engineering — 0.7% | ||||||||
EMCOR Group, Inc. | 188 | 39,553 | ||||||
|
| |||||||
Consumer Finance — 0.2% | ||||||||
SLM Corp. | 773 | 10,528 | ||||||
|
| |||||||
Consumer Staples Distribution & Retail — 2.9% | ||||||||
Albertsons Cos., Inc., Class A | 2,012 | 45,773 | ||||||
BJ’s Wholesale Club Holdings, Inc.(a) | 642 | 45,819 | ||||||
Costco Wholesale Corp. | 110 | 62,146 | ||||||
|
| |||||||
153,738 | ||||||||
Diversified Consumer Services — 0.4% | ||||||||
H&R Block, Inc. | 491 | 21,142 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.3% |
| |||||||
Jabil, Inc. | 141 | 17,892 | ||||||
Vontier Corp. | 9 | 278 | ||||||
|
| |||||||
18,170 | ||||||||
Food Products — 0.9% | ||||||||
Hershey Co. (The) | 243 | 48,619 | ||||||
|
| |||||||
Ground Transportation — 1.1% |
| |||||||
Avis Budget Group, Inc.(a) | 130 | 23,360 | ||||||
U-Haul Holding Co., NVS | 656 | 34,368 | ||||||
|
| |||||||
57,728 | ||||||||
Health Care Equipment & Supplies — 0.5% | ||||||||
Inspire Medical Systems, Inc.(a) | 136 | 26,988 | ||||||
|
| |||||||
Health Care Providers & Services — 2.3% |
| |||||||
Chemed Corp. | 58 | 30,142 | ||||||
DaVita, Inc.(a) | 196 | 18,528 | ||||||
HCA Healthcare, Inc. | 97 | 23,860 | ||||||
McKesson Corp. | 94 | 40,876 | ||||||
Molina Healthcare, Inc.(a) | 36 | 11,804 | ||||||
|
| |||||||
125,210 |
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure — 2.3% |
| |||||||
Airbnb, Inc., Class A(a)(b) | 116 | $ | 15,916 | |||||
Domino’s Pizza, Inc. | 87 | 32,955 | ||||||
Wingstop, Inc. | 395 | 71,037 | ||||||
Yum! Brands, Inc. | 28 | 3,498 | ||||||
|
| |||||||
123,406 | ||||||||
Independent Power and Renewable Electricity Producers — 0.8% | ||||||||
Vistra Corp. | 1,258 | 41,740 | ||||||
|
| |||||||
Insurance — 0.2% | ||||||||
Primerica, Inc. | 62 | 12,029 | ||||||
|
| |||||||
Interactive Media & Services — 6.5% | ||||||||
Alphabet, Inc., Class A(a) | 887 | 116,073 | ||||||
Alphabet, Inc., Class C, NVS(a) | 714 | 94,141 | ||||||
Meta Platforms, Inc., Class A(a) | 451 | 135,394 | ||||||
|
| |||||||
345,608 | ||||||||
IT Services — 1.2% | ||||||||
Accenture PLC, Class A | 36 | 11,056 | ||||||
Gartner, Inc.(a) | 12 | 4,123 | ||||||
MongoDB, Inc., Class A(a) | 18 | 6,226 | ||||||
VeriSign, Inc.(a) | 209 | 42,329 | ||||||
|
| |||||||
63,734 | ||||||||
Life Sciences Tools & Services — 1.5% | ||||||||
Medpace Holdings, Inc.(a) | 213 | 51,574 | ||||||
Mettler-Toledo International, Inc.(a) | 27 | 29,918 | ||||||
|
| |||||||
81,492 | ||||||||
Machinery — 0.8% | ||||||||
Allison Transmission Holdings, Inc. | 562 | 33,192 | ||||||
Otis Worldwide Corp. | 116 | 9,316 | ||||||
|
| |||||||
42,508 | ||||||||
Oil, Gas & Consumable Fuels — 0.9% | ||||||||
Antero Midstream Corp. | 4,092 | 49,022 | ||||||
|
| |||||||
Personal Care Products — 1.9% | ||||||||
Kenvue, Inc. | 5,002 | 100,440 | ||||||
|
| |||||||
Pharmaceuticals — 3.6% | ||||||||
Eli Lilly & Co. | 241 | 129,448 | ||||||
Merck & Co., Inc. | 611 | 62,903 | ||||||
|
| |||||||
192,351 | ||||||||
Professional Services — 1.3% | ||||||||
Booz Allen Hamilton Holding Corp., Class A | 618 | 67,529 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 10.0% | ||||||||
Allegro MicroSystems, Inc.(a) | 718 | 22,933 | ||||||
Broadcom, Inc. | 136 | 112,959 | ||||||
KLA Corp. | 70 | 32,106 | ||||||
Lam Research Corp. | 12 | 7,521 | ||||||
Lattice Semiconductor Corp.(a) | 139 | 11,944 | ||||||
NVIDIA Corp. | 633 | 275,349 | ||||||
QUALCOMM, Inc. | 661 | 73,411 | ||||||
|
| |||||||
536,223 | ||||||||
Software — 22.0% | ||||||||
Adobe, Inc.(a) | 60 | 30,594 | ||||||
Atlassian Corp., Class A(a) | 357 | 71,939 | ||||||
Cadence Design Systems, Inc.(a) | 283 | 66,307 | ||||||
Crowdstrike Holdings, Inc., Class A(a) | 295 | 49,377 | ||||||
Dropbox, Inc., Class A(a)(b) | 646 | 17,591 | ||||||
Fair Isaac Corp.(a) | 100 | 86,853 | ||||||
Fortinet, Inc.(a) | 840 | 49,291 | ||||||
HubSpot, Inc.(a) | 52 | 25,610 | ||||||
Manhattan Associates, Inc.(a)(b) | 343 | 67,797 |
S C H E D U L E S O F I N V E S T M E N T S | 7 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Factors US Growth Style ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
Microsoft Corp. | 1,763 | $ | 556,667 | |||||
Nutanix, Inc., Class A(a) | 705 | 24,590 | ||||||
Palo Alto Networks, Inc.(a) | 54 | 12,660 | ||||||
Smartsheet, Inc., Class A(a) | 951 | 38,478 | ||||||
Synopsys, Inc.(a) | 82 | 37,636 | ||||||
Teradata Corp.(a) | 439 | 19,764 | ||||||
Zscaler, Inc.(a) | 146 | 22,716 | ||||||
|
| |||||||
1,177,870 | ||||||||
Specialty Retail — 4.4% | ||||||||
AutoZone, Inc.(a) | 5 | 12,700 | ||||||
Best Buy Co., Inc. | 333 | 23,133 | ||||||
Dick’s Sporting Goods, Inc. | 151 | 16,396 | ||||||
Home Depot, Inc. (The) | 17 | 5,137 | ||||||
Lowe’s Cos., Inc. | 22 | 4,572 | ||||||
Murphy U.S.A., Inc. | 223 | 76,206 | ||||||
O’Reilly Automotive, Inc.(a) | 4 | 3,635 | ||||||
Victoria’s Secret & Co.(a) | 1,416 | 23,619 | ||||||
Wayfair, Inc., Class A(a) | 41 | 2,483 | ||||||
Williams-Sonoma, Inc. | 449 | 69,775 | ||||||
|
| |||||||
237,656 | ||||||||
Technology Hardware, Storage & Peripherals — 14.4% | ||||||||
Apple Inc. | 4,111 | 703,844 | ||||||
HP, Inc. | 1,360 | 34,952 | ||||||
NetApp, Inc. | 433 | 32,856 | ||||||
|
| |||||||
771,652 | ||||||||
Textiles, Apparel & Luxury Goods — 2.0% | ||||||||
Crocs, Inc.(a) | 494 | 43,586 | ||||||
Deckers Outdoor Corp.(a) | 109 | 56,036 | ||||||
Tapestry, Inc. | 231 | 6,641 | ||||||
|
| |||||||
106,263 |
Security | Shares | Value | ||||||
Trading Companies & Distributors — 1.6% | ||||||||
Watsco, Inc. | 43 | $ | 16,242 | |||||
WW Grainger, Inc. | 103 | 71,259 | ||||||
|
| |||||||
87,501 | ||||||||
|
| |||||||
Total Long-Term Investments — 99.9% | 5,355,270 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 2.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 100,840 | 100,880 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 12,786 | 12,786 | ||||||
|
| |||||||
Total Short-Term Securities — 2.1% | 113,666 | |||||||
|
| |||||||
Total Investments — 102.0% | 5,468,936 | |||||||
Liabilities in Excess of Other Assets — (2.0)% | (108,794 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ 5,360,142 | |||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 1,703 | $ | 99,163 | (a) | $ | — | $ | 9 | $ | 5 | $ | 100,880 | 100,840 | $ | 90 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,256 | 11,530 | (a) | — | — | — | 12,786 | 12,786 | 172 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 9 | $ | 5 | $ | 113,666 | $ | 262 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
8 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Factors US Growth Style ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 5,355,270 | $ | — | $ | — | $ | 5,355,270 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 113,666 | — | — | 113,666 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 5,468,936 | $ | — | $ | — | $ | 5,468,936 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E S O F I N V E S T M E N T S | 9 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® Factors US Value Style ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 0.1% | ||||||||
Northrop Grumman Corp. | 9 | $ | 3,962 | |||||
|
| |||||||
Air Freight & Logistics — 3.1% | ||||||||
CH Robinson Worldwide, Inc. | 76 | 6,546 | ||||||
Expeditors International of Washington, Inc. | 244 | 27,970 | ||||||
FedEx Corp. | 82 | 21,723 | ||||||
United Parcel Service, Inc., Class B | 166 | 25,874 | ||||||
|
| |||||||
82,113 | ||||||||
Automobile Components — 1.6% | ||||||||
Phinia, Inc. | 1,574 | 42,167 | ||||||
|
| |||||||
Banks — 1.9% | ||||||||
Citigroup, Inc. | 484 | 19,907 | ||||||
JPMorgan Chase & Co. | 89 | 12,907 | ||||||
Popular, Inc. | 272 | 17,139 | ||||||
Zions Bancorp N.A | 24 | 837 | ||||||
|
| |||||||
50,790 | ||||||||
Beverages — 0.5% | ||||||||
PepsiCo, Inc. | 72 | 12,200 | ||||||
|
| |||||||
Biotechnology — 1.9% | ||||||||
Amgen, Inc. | 37 | 9,944 | ||||||
Biogen, Inc.(a) | 4 | 1,028 | ||||||
Gilead Sciences, Inc. | 233 | 17,461 | ||||||
Moderna, Inc.(a) | 155 | 16,010 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 16 | 5,564 | ||||||
|
| |||||||
50,007 | ||||||||
Broadline Retail — 0.9% | ||||||||
eBay, Inc. | 40 | 1,763 | ||||||
Kohl’s Corp. | 60 | 1,258 | ||||||
Macy’s, Inc. | 1,762 | 20,457 | ||||||
Nordstrom, Inc. | 44 | 657 | ||||||
|
| |||||||
24,135 | ||||||||
Building Products — 1.7% | ||||||||
Builders FirstSource, Inc.(a) | 102 | 12,698 | ||||||
Lennox International, Inc. | 47 | 17,599 | ||||||
Masco Corp. | 193 | 10,316 | ||||||
Owens Corning | 32 | 4,365 | ||||||
|
| |||||||
44,978 | ||||||||
Capital Markets — 9.4% | ||||||||
Bank of New York Mellon Corp. (The) | 34 | 1,450 | ||||||
Evercore, Inc., Class A | 397 | 54,738 | ||||||
Franklin Resources, Inc. | 185 | 4,547 | ||||||
Goldman Sachs Group, Inc. (The) | 69 | 22,326 | ||||||
Jefferies Financial Group, Inc. | 1,201 | 43,993 | ||||||
Lazard Ltd., Class A | 981 | 30,421 | ||||||
MSCI, Inc., Class A | 26 | 13,340 | ||||||
State Street Corp. | 133 | 8,906 | ||||||
TPG, Inc., Class A | 1,855 | 55,873 | ||||||
Virtu Financial, Inc., Class A | 894 | 15,439 | ||||||
|
| |||||||
251,033 | ||||||||
Chemicals — 0.7% | ||||||||
CF Industries Holdings, Inc. | 13 | 1,114 | ||||||
Chemours Co. (The) | 63 | 1,767 | ||||||
Linde PLC | 39 | 14,522 | ||||||
|
| |||||||
17,403 |
Security | Shares | Value | ||||||
Commercial Services & Supplies — 0.6% | ||||||||
Republic Services, Inc. | 95 | $ | 13,538 | |||||
Waste Management, Inc. | 9 | 1,372 | ||||||
|
| |||||||
14,910 | ||||||||
Communications Equipment — 1.9% | ||||||||
Cisco Systems, Inc. | 471 | 25,321 | ||||||
Juniper Networks, Inc. | 302 | 8,392 | ||||||
Motorola Solutions, Inc. | 61 | 16,607 | ||||||
|
| |||||||
50,320 | ||||||||
Construction & Engineering — 0.6% | ||||||||
EMCOR Group, Inc. | 81 | 17,042 | ||||||
|
| |||||||
Construction Materials — 0.1% | ||||||||
Eagle Materials, Inc. | 11 | 1,832 | ||||||
|
| |||||||
Consumer Finance — 3.5% | ||||||||
Ally Financial, Inc. | 998 | 26,627 | ||||||
American Express Co. | 46 | 6,863 | ||||||
Capital One Financial Corp. | 84 | 8,152 | ||||||
Discover Financial Services | 31 | 2,685 | ||||||
OneMain Holdings, Inc. | 368 | 14,753 | ||||||
SLM Corp. | 942 | 12,830 | ||||||
Synchrony Financial | 680 | 20,788 | ||||||
|
| |||||||
92,698 | ||||||||
Consumer Staples Distribution & Retail — 2.8% | ||||||||
Albertsons Cos., Inc., Class A | 1,079 | 24,547 | ||||||
BJ’s Wholesale Club Holdings, Inc.(a) | 69 | 4,925 | ||||||
Kroger Co. (The) | 726 | 32,488 | ||||||
Walmart, Inc. | 84 | 13,434 | ||||||
|
| |||||||
75,394 | ||||||||
Containers & Packaging — 0.4% | ||||||||
Amcor PLC | 121 | 1,109 | ||||||
Graphic Packaging Holding Co. | 233 | 5,191 | ||||||
Silgan Holdings, Inc. | 103 | 4,440 | ||||||
|
| |||||||
10,740 | ||||||||
Diversified Consumer Services — 0.3% | ||||||||
H&R Block, Inc. | 198 | 8,526 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.7% | ||||||||
AT&T Inc. | 548 | 8,231 | ||||||
Verizon Communications, Inc. | 1,142 | 37,012 | ||||||
|
| |||||||
45,243 | ||||||||
Electric Utilities — 2.1% | ||||||||
Avangrid, Inc. | 5 | 151 | ||||||
Entergy Corp. | 118 | 10,915 | ||||||
Hawaiian Electric Industries, Inc. | 781 | 9,614 | ||||||
IDACORP, Inc. | 99 | 9,271 | ||||||
NRG Energy, Inc. | 32 | 1,233 | ||||||
Pinnacle West Capital Corp. | 147 | 10,831 | ||||||
Southern Co. (The) | 27 | 1,748 | ||||||
Xcel Energy, Inc. | 192 | 10,986 | ||||||
|
| |||||||
54,749 | ||||||||
Electrical Equipment — 0.9% | ||||||||
Acuity Brands, Inc. | 32 | 5,450 | ||||||
nVent Electric PLC | 337 | 17,858 | ||||||
|
| |||||||
23,308 | ||||||||
Electronic Equipment, Instruments & Components — 0.9% | ||||||||
Arrow Electronics, Inc.(a) | 31 | 3,882 | ||||||
Avnet, Inc. | 175 | 8,433 |
10 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Factors US Value Style ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Jabil, Inc. | 67 | $ | 8,502 | |||||
Vontier Corp. | 104 | 3,216 | ||||||
|
| |||||||
24,033 | ||||||||
Energy Equipment & Services — 0.3% | ||||||||
TechnipFMC PLC | 437 | 8,889 | ||||||
|
| |||||||
Entertainment — 4.0% | ||||||||
Electronic Arts, Inc. | 20 | 2,408 | ||||||
Liberty Media Corp. - Liberty Live, Class A(a) | 1,651 | 52,700 | ||||||
Liberty Media Corp. - Liberty Live, Class C, NVS(a) | 1,624 | 52,130 | ||||||
|
| |||||||
107,238 | ||||||||
Financial Services — 1.8% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 1 | 350 | ||||||
Voya Financial, Inc. | 375 | 24,919 | ||||||
Western Union Co. (The) | 1,675 | 22,076 | ||||||
|
| |||||||
47,345 | ||||||||
Food Products — 2.2% | ||||||||
Campbell Soup Co. | 169 | 6,943 | ||||||
Flowers Foods, Inc. | 501 | 11,112 | ||||||
General Mills, Inc. | 164 | 10,494 | ||||||
Hershey Co. (The) | 111 | 22,209 | ||||||
J M Smucker Co. (The) | 52 | 6,391 | ||||||
|
| |||||||
57,149 | ||||||||
Ground Transportation — 0.7% | ||||||||
Avis Budget Group, Inc.(a) | 17 | 3,055 | ||||||
Schneider National, Inc., Class B | 548 | 15,174 | ||||||
|
| |||||||
18,229 | ||||||||
Health Care Equipment & Supplies — 0.6% | ||||||||
Abbott Laboratories | 158 | 15,302 | ||||||
|
| |||||||
Health Care Providers & Services — 2.7% | ||||||||
Chemed Corp. | 23 | 11,953 | ||||||
CVS Health Corp. | 383 | 26,741 | ||||||
Encompass Health Corp. | 3 | 202 | ||||||
HCA Healthcare, Inc. | 45 | 11,069 | ||||||
McKesson Corp. | 36 | 15,655 | ||||||
Molina Healthcare, Inc.(a) | 16 | 5,246 | ||||||
|
| |||||||
70,866 | ||||||||
Health Care REITs — 0.7% | ||||||||
Healthpeak Properties, Inc. | 689 | 12,650 | ||||||
Omega Healthcare Investors, Inc. | 193 | 6,400 | ||||||
|
| |||||||
19,050 | ||||||||
Hotels, Restaurants & Leisure — 0.7% | ||||||||
McDonald’s Corp. | 22 | 5,796 | ||||||
Yum! Brands, Inc. | 111 | 13,868 | ||||||
|
| |||||||
19,664 | ||||||||
Household Durables — 0.0% | ||||||||
PulteGroup, Inc. | 11 | 815 | ||||||
|
| |||||||
Household Products — 1.0% | ||||||||
Colgate-Palmolive Co. | 55 | 3,911 | ||||||
Kimberly-Clark Corp. | 12 | 1,450 | ||||||
Procter & Gamble Co. (The) | 153 | 22,317 | ||||||
|
| |||||||
27,678 | ||||||||
Independent Power and Renewable Electricity Producers — 2.2% | ||||||||
Clearway Energy, Inc., Class A | 919 | 18,306 | ||||||
Clearway Energy, Inc., Class C | 894 | 18,917 | ||||||
Vistra Corp. | 610 | 20,240 | ||||||
|
| |||||||
57,463 |
Security | Shares | Value | ||||||
Insurance — 6.8% | ||||||||
Aflac, Inc. | 212 | $ | 16,271 | |||||
American Financial Group, Inc. | 88 | 9,827 | ||||||
American International Group, Inc. | 29 | 1,757 | ||||||
Aon PLC, Class A | 11 | 3,566 | ||||||
Assurant, Inc. | 49 | 7,035 | ||||||
Assured Guaranty Ltd. | 315 | 19,064 | ||||||
Axis Capital Holdings Ltd. | 370 | 20,857 | ||||||
Brighthouse Financial, Inc.(a) | 33 | 1,615 | ||||||
CNA Financial Corp. | 45 | 1,771 | ||||||
Hanover Insurance Group, Inc. (The) | 26 | 2,885 | ||||||
Hartford Financial Services Group, Inc. (The) | 150 | 10,637 | ||||||
Loews Corp. | 501 | 31,718 | ||||||
MetLife, Inc. | 72 | 4,530 | ||||||
Old Republic International Corp. | 5 | 135 | ||||||
Reinsurance Group of America, Inc. | 31 | 4,501 | ||||||
RLI Corp. | 49 | 6,659 | ||||||
Travelers Cos., Inc. (The) | 29 | 4,736 | ||||||
Unum Group | 271 | 13,330 | ||||||
White Mountains Insurance Group Ltd. | 14 | 20,940 | ||||||
|
| |||||||
181,834 | ||||||||
IT Services — 1.6% | ||||||||
Akamai Technologies, Inc.(a) | 27 | 2,877 | ||||||
Amdocs Ltd. | 76 | 6,421 | ||||||
Okta, Inc., Class A(a) | 21 | 1,712 | ||||||
VeriSign, Inc.(a) | 152 | 30,784 | ||||||
|
| |||||||
41,794 | ||||||||
Leisure Products — 0.2% | ||||||||
Hasbro, Inc. | 93 | 6,151 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.9% | ||||||||
Danaher Corp. | 35 | 8,683 | ||||||
Fortrea Holdings, Inc.(a) | 505 | 14,438 | ||||||
|
| |||||||
23,121 | ||||||||
Machinery — 3.0% | ||||||||
AGCO Corp. | 34 | 4,021 | ||||||
Allison Transmission Holdings, Inc. | 356 | 21,025 | ||||||
Crane Co. | 121 | 10,750 | ||||||
Graco, Inc. | 45 | 3,280 | ||||||
Illinois Tool Works, Inc. | 8 | 1,842 | ||||||
Otis Worldwide Corp. | 486 | 39,031 | ||||||
|
| |||||||
79,949 | ||||||||
Media — 0.7% | ||||||||
Comcast Corp., Class A | 433 | 19,199 | ||||||
|
| |||||||
Metals & Mining — 1.0% | ||||||||
Nucor Corp. | 48 | 7,505 | ||||||
Reliance Steel & Aluminum Co. | 19 | 4,982 | ||||||
Steel Dynamics, Inc. | 131 | 14,046 | ||||||
|
| |||||||
26,533 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.0% | ||||||||
AGNC Investment Corp. | 74 | 699 | ||||||
|
| |||||||
Multi-Utilities — 1.2% | ||||||||
Ameren Corp. | 128 | 9,578 | ||||||
CMS Energy Corp. | 3 | 159 | ||||||
Consolidated Edison, Inc. | 164 | 14,027 | ||||||
NiSource, Inc. | 189 | 4,665 | ||||||
WEC Energy Group, Inc. | 44 | 3,544 | ||||||
|
| |||||||
31,973 | ||||||||
Office REITs — 0.1% | ||||||||
Highwoods Properties, Inc. | 137 | 2,824 | ||||||
|
|
S C H E D U L E S O F I N V E S T M E N T S | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Factors US Value Style ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels — 6.6% | ||||||||
Antero Midstream Corp. | 2,706 | $ | 32,418 | |||||
APA Corp. | 79 | 3,247 | ||||||
Chesapeake Energy Corp. | 465 | 40,097 | ||||||
Chevron Corp. | 22 | 3,710 | ||||||
ConocoPhillips | 99 | 11,860 | ||||||
Coterra Energy, Inc. | 328 | 8,872 | ||||||
Devon Energy Corp. | 388 | 18,508 | ||||||
DT Midstream, Inc. | 138 | 7,303 | ||||||
Exxon Mobil Corp. | 206 | 24,221 | ||||||
Kinder Morgan, Inc. | 179 | 2,968 | ||||||
Marathon Oil Corp. | 219 | 5,858 | ||||||
Range Resources Corp. | 435 | 14,098 | ||||||
Valero Energy Corp. | 15 | 2,126 | ||||||
|
| |||||||
175,286 | ||||||||
Paper & Forest Products — 0.8% | ||||||||
Louisiana-Pacific Corp. | 381 | 21,058 | ||||||
|
| |||||||
Personal Care Products — 0.6% | ||||||||
Kenvue, Inc. | 762 | 15,301 | ||||||
|
| |||||||
Pharmaceuticals — 8.2% | ||||||||
Bristol-Myers Squibb Co. | 454 | 26,350 | ||||||
Johnson & Johnson | 487 | 75,850 | ||||||
Merck & Co., Inc. | 672 | 69,183 | ||||||
Pfizer, Inc. | 1,270 | 42,126 | ||||||
Royalty Pharma PLC, Class A | 164 | 4,451 | ||||||
|
| |||||||
217,960 | ||||||||
Professional Services — 0.7% | ||||||||
Dun & Bradstreet Holdings, Inc. | 859 | 8,581 | ||||||
FTI Consulting, Inc.(a) | 43 | 7,672 | ||||||
ManpowerGroup, Inc. | 45 | 3,299 | ||||||
|
| |||||||
19,552 | ||||||||
Residential REITs — 0.7% | ||||||||
Equity Residential | 297 | 17,437 | ||||||
|
| |||||||
Retail REITs — 0.2% | ||||||||
Brixmor Property Group, Inc. | 266 | 5,527 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 1.5% | ||||||||
Cirrus Logic, Inc.(a) | 71 | 5,251 | ||||||
Intel Corp. | 38 | 1,351 | ||||||
Lam Research Corp. | 8 | 5,014 | ||||||
QUALCOMM, Inc. | 34 | 3,776 | ||||||
Texas Instruments, Inc. | 158 | 25,124 | ||||||
|
| |||||||
40,516 | ||||||||
Software — 1.9% | ||||||||
Aspen Technology, Inc.(a) | 29 | 5,924 | ||||||
Dropbox, Inc., Class A(a) | 619 | 16,855 | ||||||
Nutanix, Inc., Class A(a) | 428 | 14,929 | ||||||
Oracle Corp. | 109 | 11,545 | ||||||
|
| |||||||
49,253 |
Security | Shares | Value | ||||||
Specialized REITs — 1.0% | ||||||||
Public Storage | 62 | $ | 16,338 | |||||
SBA Communications Corp., Class A | 54 | 10,809 | ||||||
|
| |||||||
27,147 | ||||||||
Specialty Retail — 2.2% | ||||||||
AutoNation, Inc.(a) | 65 | 9,841 | ||||||
Bath & Body Works, Inc. | 69 | 2,332 | ||||||
Best Buy Co., Inc. | 44 | 3,057 | ||||||
Dick’s Sporting Goods, Inc. | 46 | 4,995 | ||||||
Murphy U.S.A., Inc. | 47 | 16,061 | ||||||
Victoria’s Secret & Co.(a) | 449 | 7,489 | ||||||
Williams-Sonoma, Inc. | 96 | 14,919 | ||||||
|
| |||||||
58,694 | ||||||||
Technology Hardware, Storage & Peripherals — 2.8% | ||||||||
Hewlett Packard Enterprise Co. | 1,622 | 28,174 | ||||||
HP, Inc. | 962 | 24,724 | ||||||
NetApp, Inc. | 297 | 22,536 | ||||||
|
| |||||||
75,434 | ||||||||
Textiles, Apparel & Luxury Goods — 0.2% | ||||||||
Columbia Sportswear Co. | 67 | 4,965 | ||||||
|
| |||||||
Tobacco — 1.7% | ||||||||
Altria Group, Inc. | 515 | 21,656 | ||||||
Philip Morris International, Inc. | 244 | 22,589 | ||||||
|
| |||||||
44,245 | ||||||||
Trading Companies & Distributors — 0.6% | ||||||||
Core & Main, Inc., Class A(a) | 4 | 115 | ||||||
MSC Industrial Direct Co., Inc., Class A | 108 | 10,600 | ||||||
Watsco, Inc. | 16 | 6,044 | ||||||
|
| |||||||
16,759 | ||||||||
|
| |||||||
Total Long-Term Investments — 99.7% |
| 2,650,482 | ||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 1.6% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(c) | 41,506 | 41,506 | ||||||
|
| |||||||
Total Short-Term Securities — 1.6% | 41,506 | |||||||
|
| |||||||
Total Investments — 101.3% | 2,691,988 | |||||||
Liabilities in Excess of Other Assets — (1.3)% |
| (34,514 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ 2,657,474 | |||||||
|
|
(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | Annualized 7-day yield as of period end. |
12 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® Factors US Value Style ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares(a) | $ | 22,043 | $ | — | $ | (22,048 | )(b) | $ | 5 | $ | — | $ | — | — | $ | 357 | (c) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 5,487 | 36,019 | (b) | — | — | — | 41,506 | 41,506 | 171 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 5 | $ | — | $ | 41,506 | $ | 528 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | As of period end, the entity is no longer held by the Fund. |
(b) | Represents net amount purchased (sold). |
(c) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 2,650,482 | $ | — | $ | — | $ | 2,650,482 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 41,506 | — | — | 41,506 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,691,988 | $ | — | $ | — | $ | 2,691,988 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E S O F I N V E S T M E N T S | 13 |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares Factors US Growth Style ETF | iShares Factors US Value Style ETF | |||||||
ASSETS | ||||||||
Investments, at value — unaffiliated(a)(b) | $ | 5,355,270 | $ | 2,650,482 | ||||
Investments, at value — affiliated(c) | 113,666 | 41,506 | ||||||
Receivables: | ||||||||
Investments sold | 1,158 | — | ||||||
Securities lending income — affiliated | 15 | 4 | ||||||
Dividends — unaffiliated | 1,588 | 3,678 | ||||||
Dividends — affiliated | 28 | 38 | ||||||
|
|
|
| |||||
Total assets | 5,471,725 | 2,695,708 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Collateral on securities loaned | 100,888 | — | ||||||
Payables: | ||||||||
Investments purchased | 1,158 | — | ||||||
Income dividend distributions | 8,411 | 37,672 | ||||||
Investment advisory fees | 1,126 | 562 | ||||||
|
|
|
| |||||
Total liabilities | 111,583 | 38,234 | ||||||
|
|
|
| |||||
Commitments and contingent liabilities | ||||||||
NET ASSETS | $ | 5,360,142 | $ | 2,657,474 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 5,942,357 | $ | 3,792,069 | ||||
Accumulated loss | (582,215 | ) | (1,134,595 | ) | ||||
|
|
|
| |||||
NET ASSETS | $ | 5,360,142 | $ | 2,657,474 | ||||
|
|
|
| |||||
NET ASSET VALUE | ||||||||
Shares outstanding | 150,000 | 100,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 35.73 | $ | 26.57 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Investments, at cost — unaffiliated | $ | 5,476,632 | $ | 2,805,738 | ||||
(b) Securities loaned, at value | $ | 98,987 | $ | — | ||||
(c) Investments, at cost — affiliated | $ | 113,661 | $ | 41,506 |
See notes to financial statements.
14 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Factors US Growth Style ETF | iShares Factors US Value Style ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — unaffiliated | $ | 28,182 | $ | 50,666 | ||||
Dividends — affiliated | 172 | 171 | ||||||
Securities lending income — affiliated — net | 90 | 357 | ||||||
Foreign taxes withheld | — | (54 | ) | |||||
|
|
|
| |||||
Total investment income | 28,444 | 51,140 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory | 6,220 | 4,336 | ||||||
|
|
|
| |||||
Total expenses | 6,220 | 4,336 | ||||||
|
|
|
| |||||
Net investment income | 22,224 | 46,804 | ||||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — unaffiliated | (117,942 | ) | (167,221 | ) | ||||
Investments — affiliated | 9 | 5 | ||||||
In-kind redemptions — unaffiliated(a) | 578,779 | 113,181 | ||||||
|
|
|
| |||||
460,846 | (54,035 | ) | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — unaffiliated | (38,366 | ) | 107,976 | |||||
Investments — affiliated | 5 | — | ||||||
|
|
|
| |||||
(38,361 | ) | 107,976 | ||||||
|
|
|
| |||||
Net realized and unrealized gain | 422,485 | 53,941 | ||||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 444,709 | $ | 100,745 | ||||
|
|
|
|
(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
FINANCIAL STATEMENTS | 15 |
Statements of Changes in Net Assets
iShares Factors US Growth Style ETF | iShares Factors US Value Style ETF | |||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 22,224 | $ | 29,878 | $ | 46,804 | $ | 137,607 | ||||||||||||
Net realized gain (loss) | 460,846 | (755,683 | ) | (54,035 | ) | (372,903 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) | (38,361 | ) | 121,879 | 107,976 | (21,280 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 444,709 | (603,926 | ) | 100,745 | (256,576 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (21,987 | ) | (31,710 | ) | (58,116 | ) | (136,086 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 3,282,432 | (3,168,344 | ) | (1,380,082 | ) | (2,875,406 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS | ||||||||||||||||||||
Total increase (decrease) in net assets | 3,705,154 | (3,803,980 | ) | (1,337,453 | ) | (3,268,068 | ) | |||||||||||||
Beginning of period | 1,654,988 | 5,458,968 | 3,994,927 | 7,262,995 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 5,360,142 | $ | 1,654,988 | $ | 2,657,474 | $ | 3,994,927 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
16 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares Factors US Growth Style ETF | ||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited) |
| | Year Ended 03/31/23 |
| | Year Ended 03/31/22 |
| | Year Ended 03/31/21 |
| | Period From 01/14/20 to 03/31/20 | (a)
| ||||||
Net asset value, beginning of period | $ | 33.10 | $ | 36.39 | $ | 32.35 | $ | 20.27 | $ | 24.96 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(b) | 0.15 | 0.32 | 0.24 | 0.25 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | 2.67 | (3.08 | ) | 4.06 | 12.08 | (4.69 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 2.82 | (2.76 | ) | 4.30 | 12.33 | (4.63 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(d) | ||||||||||||||||||||
From net investment income | (0.19 | ) | (0.53 | ) | (0.26 | ) | (0.25 | ) | (0.06 | ) | ||||||||||
Return of capital | — | — | — | — | (0.00 | )(e) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.19 | ) | (0.53 | ) | (0.26 | ) | (0.25 | ) | (0.06 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 35.73 | $ | 33.10 | $ | 36.39 | $ | 32.35 | $ | 20.27 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return(f) | ||||||||||||||||||||
Based on net asset value | 8.55 | %(g) | (7.47 | )% | 13.28 | % | 61.00 | % | (18.54 | )%(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets(h) | ||||||||||||||||||||
Total expenses | 0.25 | %(i) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | %(i) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 0.89 | %(i) | 1.01 | % | 0.66 | % | 0.88 | % | 1.20 | %(i) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 5,360 | $ | 1,655 | $ | 5,459 | $ | 4,852 | $ | 4,054 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(j) | 42 | % | 67 | % | 111 | % | 103 | % | 13 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Rounds to less than $0.01. |
(f) | Where applicable, assumes the reinvestment of distributions. |
(g) | Not annualized. |
(h) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) | Annualized. |
(j) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 17 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Factors US Value Style ETF | ||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited |
) | | Year Ended 03/31/23 |
| | Year Ended 03/31/22 |
| | Year Ended 03/31/21 |
| | Period From 01/14/20 to 03/31/20 | (a)
| ||||||
Net asset value, beginning of period | $ | 26.63 | $ | 29.05 | $ | 27.45 | $ | 17.46 | $ | 25.09 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(b) | 0.37 | 0.73 | 0.69 | 0.51 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | 0.08 | (2.33 | ) | 1.58 | 10.06 | (7.65 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 0.45 | (1.60 | ) | 2.27 | 10.57 | (7.50 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income(d) | (0.51 | ) | (0.82 | ) | (0.67 | ) | (0.58 | ) | (0.13 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 26.57 | $ | 26.63 | $ | 29.05 | $ | 27.45 | $ | 17.46 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return(e) | ||||||||||||||||||||
Based on net asset value | 1.72 | %(f) | (5.40 | )% | 8.28 | % | 61.25 | % | (29.87 | )%(f) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets(g) | ||||||||||||||||||||
Total expenses | 0.25 | %(h) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | %(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 2.70 | %(h) | 2.69 | % | 2.37 | % | 2.29 | % | 3.09 | %(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 2,657 | $ | 3,995 | $ | 7,263 | $ | 6,863 | $ | 3,492 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(i) | 78 | % | 109 | % | 104 | % | 148 | % | 16 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Where applicable, assumes the reinvestment of distributions. |
(f) | Not annualized. |
(g) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
18 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Factors US Growth Style | Non-Diversified | |
Factors US Value Style | Diversified |
On August 18, 2023, the Board of Trustees of the iShares Factors US Value Style ETF approved a proposal to close the Fund to new and subsequent investments and thereafter to liquidate and terminate the Fund. Effective October 30, 2023, the Fund will no longer accept orders from new investors or existing shareholders to purchase Fund shares. On or about November 2, 2023 (the “Liquidation Date”), all of the assets of the Fund will have been liquidated completely, the shares of any shareholders holding shares on the Liquidation Date will be redeemed at the net asset value per share and the Fund will then be terminated as a Series of the Trust.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdiction in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
NOTES TO FINANCIAL STATEMENTS | 19 |
Notes to Financial Statements (unaudited) (continued)
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
20 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | | Securities Loaned at Value |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received, at Fair Value |
(a) | | Net Amount |
| ||||
Factors US Growth Style | ||||||||||||||||
Citadel Clearing LLC | $ | 16,338 | $ | (16,338 | ) | $ | — | $ | — | |||||||
Citigroup Global Markets, Inc. | 82,649 | (82,649 | ) | — | — | |||||||||||
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$ | 98,987 | $ | (98,987 | ) | $ | — | $ | — | ||||||||
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(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |||
Factors US Growth Style | 0.25 | % | ||
Factors US Value Style | 0.25 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
NOTES TO FINANCIAL STATEMENTS | 21 |
Notes to Financial Statements (unaudited) (continued)
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Amounts | |||
Factors US Growth Style | $ | 36 | ||
Factors US Value Style | 89 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
Factors US Growth Style | $ | 214,244 | $ | 221,452 | $ | (13,567 | ) | |||||
Factors US Value Style | 394,012 | 306,617 | (47,162 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
6. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Factors US Growth Style | $ | 1,997,560 | $ | 1,984,630 | ||||
Factors US Value Style | 2,695,432 | 2,730,088 |
For the six months ended September 30, 2023, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Factors US Growth Style | $ | 10,314,277 | $ | 7,047,737 | ||||
Factors US Value Style | — | 1,350,641 |
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 each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring Capital Loss Carryforwards | |||
Factors US Growth Style | $ | 899,128 | ||
Factors US Value Style | 863,481 |
As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Factors US Growth Style | $ | 5,613,253 | $ | 120,153 | $ | (264,470 | ) | $ | (144,317 | ) | ||||||
Factors US Value Style | 2,901,198 | 100,201 | (309,411 | ) | (209,210 | ) |
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Notes to Financial Statements (unaudited) (continued)
8. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
The Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
NOTES TO FINANCIAL STATEMENTS | 23 |
Notes to Financial Statements (unaudited) (continued)
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 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Factors US Growth Style | ||||||||||||||||
Shares sold | 300,000 | $ | 10,355,201 | 200,000 | $ | 6,596,262 | ||||||||||
Shares redeemed | (200,000 | ) | (7,072,769 | ) | (300,000 | ) | (9,764,606) | |||||||||
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100,000 | $ | 3,282,432 | (100,000 | ) | $ | (3,168,344 | ) | |||||||||
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Factors US Value Style | ||||||||||||||||
Shares sold | — | $ | — | 50,000 | $ | 1,458,535 | ||||||||||
Shares redeemed | (50,000 | ) | (1,380,082 | ) | (150,000 | ) | (4,333,941 | ) | ||||||||
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(50,000 | ) | $ | (1,380,082 | ) | (100,000 | ) | $ | (2,875,406 | ) | |||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
24 | 2 0 2 3 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Board Review and Approval of Investment Advisory Contract
iShares Factors US Growth Style ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 25 |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares Factors US Value Style ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet
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Board Review and Approval of Investment Advisory Contract (continued)
applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 27 |
Board Review and Approval of Investment Advisory Contract (continued)
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||||||
Factors US Value Style(a) | $ | 0.427962 | $ | — | $ | 0.085050 | $ | 0.513012 | 83 | % | — | % | 17 | % | 100 | % |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
SUPPLEMENTAL INFORMATION | 29 |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
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Glossary of Terms Used in this Report
Portfolio Abbreviation
NVS | Non-Voting Shares |
GLOSSARY OF TERMS USED IN THIS REPORT | 31 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE Russell, 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.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-314-0923
SEPTEMBER 30, 2023 |
2023 Semi-Annual Report (Unaudited) |
iShares Trust
· iShares ESG Screened S&P 500 ETF | XVV | Cboe BZX
· iShares ESG Screened S&P Mid-Cap ETF | XJH | Cboe BZX
· iShares ESG Screened S&P Small-Cap ETF | XJR | Cboe BZX
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2023 | ||||
6-Month | 12-Month | |||
U.S. large cap equities (S&P 500® Index) | 5.18% | 21.62% | ||
U.S. small cap equities (Russell 2000® Index) | (0.19) | 8.93 | ||
International equities (MSCI Europe, Australasia, Far East Index) | (1.28) | 25.65 | ||
Emerging market equities (MSCI Emerging Markets Index) | (2.05) | 11.70 | ||
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index) | 2.50 | 4.47 | ||
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index) | (6.98) | (2.90) | ||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index) | (4.05) | 0.64 | ||
Tax-exempt municipal bonds (Bloomberg Municipal Bond Index) | (4.05) | 2.66 | ||
U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index) | 2.22 | 10.28 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
2 | THIS PAGE IS NOT PART OF YOUR FUND REPORT |
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3 |
Fund Summary as of September 30, 2023 | iShares® ESG Screened S&P 500 ETF |
Investment Objective
The iShares ESG Screened S&P 500 ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities while applying screens for company involvement in controversies and controversial business activities, as represented by the S&P 500 Substainability Screened Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6-Month Total Returns | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 5.68 | % | 22.72 | % | 9.92 | % | 22.72 | % | 33.12 | % | ||||||||||
Fund Market | 5.68 | 22.61 | 9.91 | 22.61 | 33.10 | |||||||||||||||
Index | 5.73 | 22.83 | 10.03 | 22.83 | 33.47 |
The inception date of the Fund was 9/22/20. The first day of secondary market trading was 9/24/20.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,056.80 | $ | 0.41 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.40 | 0.08 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Information Technology | 30.5 | % | ||
Health Care | 13.7 | |||
Financials | 13.5 | |||
Consumer Discretionary | 11.7 | |||
Communication Services | 9.9 | |||
Industrials | 7.0 | |||
Consumer Staples | 5.8 | |||
Real Estate | 2.6 | |||
Materials | 2.6 | |||
Energy | 1.4 | |||
Utilities | 1.3 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Apple Inc. | 7.8 | % | ||
Microsoft Corp. | 7.3 | |||
Amazon.com, Inc. | 3.6 | |||
NVIDIA Corp. | 3.3 | |||
Alphabet, Inc., Class A | 2.4 | |||
Tesla, Inc. | 2.1 | |||
Meta Platforms, Inc., Class A | 2.1 | |||
Alphabet, Inc., Class C, NVS | 2.1 | |||
Berkshire Hathaway, Inc., Class B | 2.0 | |||
UnitedHealth Group, Inc. | 1.4 |
(a) | Excludes money market funds. |
4 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF |
Investment Objective
The iShares ESG Screened S&P Mid-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities while applying screens for company involvement in controversies and controversial business activities, as represented by the S&P MidCap 400 Sustainability Screened Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6-Month Total Returns | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | 0.11 | % | 15.50 | % | 11.69 | % | 15.50 | % | 39.69 | % | ||||||||||
Fund Market | 0.34 | 15.67 | 11.74 | 15.67 | 39.90 | |||||||||||||||
Index | 0.16 | 15.63 | 11.85 | 15.63 | 40.26 |
The inception date of the Fund was 9/22/20. The first day of secondary market trading was 9/24/20.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,001.10 | $ | 0.60 | $ | 1,000.00 | $ | 1,024.40 | $ | 0.61 | 0.12 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Industrials | 23.4 | % | ||
Financials | 15.5 | |||
Consumer Discretionary | 15.3 | |||
Information Technology | 11.2 | |||
Health Care | 9.4 | |||
Real Estate | 7.7 | |||
Materials | 7.6 | |||
Consumer Staples | 3.9 | |||
Energy | 2.4 | |||
Communication Services | 2.0 | |||
Utilities | 1.6 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Hubbell, Inc. | 0.8 | % | ||
Jabil, Inc. | 0.8 | |||
Builders FirstSource, Inc. | 0.8 | |||
Reliance Steel & Aluminum Co. | 0.8 | |||
Deckers Outdoor Corp. | 0.7 | |||
Carlisle Cos., Inc. | 0.7 | |||
Watsco, Inc. | 0.6 | |||
Super Micro Computer, Inc. | 0.6 | |||
Graco, Inc. | 0.6 | |||
Owens Corning | 0.6 |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Fund Summary as of September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF |
Investment Objective
The iShares ESG Screened S&PSmall-Cap ETF(the “Fund”) seeks to track the investment results if an index composed of small-capitalization U.S. equities while applying screens for company involvement in controversies and controversial business activities, as represented by the S&P SmallCap 600 Sustainability Screened Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6-Month Total Returns | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (1.85 | )% | 9.67 | % | 11.22 | % | 9.67 | % | 37.95 | % | ||||||||||||||
Fund Market | (1.77 | ) | 9.54 | 11.24 | 9.54 | 38.00 | ||||||||||||||||||
Index | (1.80 | ) | 9.76 | 11.59 | 9.76 | 39.29 |
The inception date of the Fund was 9/22/20. The first day of secondary market trading was 9/24/20.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (04/01/23) | | | Ending Account Value (09/30/23) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 981.50 | $ | 0.60 | $ | 1,000.00 | $ | 1,024.39 | $ | 0.61 | 0.12 | % |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | | Percent of Total Investments | (a) | |
Industrials | 17.8 | % | ||
Financials | 17.2 | |||
Information Technology | 14.7 | |||
Consumer Discretionary | 13.8 | |||
Health Care | 10.2 | |||
Real Estate | 7.6 | |||
Materials | 5.4 | |||
Consumer Staples | 5.3 | |||
Communication Services | 3.1 | |||
Energy | 3.1 | |||
Utilities | 1.8 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Onto Innovation, Inc. | 0.7 | % | ||
SPS Commerce, Inc. | 0.7 | |||
Comfort Systems U.S.A., Inc. | 0.7 | |||
Rambus, Inc. | 0.7 | |||
Fabrinet | 0.7 | |||
Applied Industrial Technologies, Inc. | 0.7 | |||
elf Beauty, Inc. | 0.7 | |||
Axcelis Technologies, Inc. | 0.6 | |||
ATI, Inc. | 0.6 | |||
Ensign Group, Inc. (The) | 0.6 |
(a) | Excludes money market funds. |
6 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
ABOUT FUND PERFORMANCE / DISCLOSURE OF EXPENSES | 7 |
Schedule of Investments (unaudited) September 30, 2023 | iShares® ESG Screened S&P 500 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.2% | ||||||||
Axon Enterprise, Inc.(a) | 340 | $ | 67,657 | |||||
Howmet Aerospace, Inc. | 1,886 | 87,227 | ||||||
TransDigm Group, Inc.(a) | 264 | 222,586 | ||||||
|
| |||||||
377,470 | ||||||||
Air Freight & Logistics — 0.6% | ||||||||
CH Robinson Worldwide, Inc. | 557 | 47,975 | ||||||
Expeditors International of Washington, Inc. | 705 | 80,814 | ||||||
FedEx Corp. | 1,110 | 294,061 | ||||||
United Parcel Service, Inc., Class B | 3,475 | 541,648 | ||||||
|
| |||||||
964,498 | ||||||||
Automobile Components — 0.1% | ||||||||
Aptiv PLC(a) | 1,367 | 134,773 | ||||||
BorgWarner, Inc. | 1,130 | 45,618 | ||||||
|
| |||||||
180,391 | ||||||||
Automobiles — 2.4% | ||||||||
Ford Motor Co. | 18,938 | 235,210 | ||||||
General Motors Co. | 6,593 | 217,371 | ||||||
Tesla, Inc.(a) | 13,265 | 3,319,168 | ||||||
|
| |||||||
3,771,749 | ||||||||
Banks — 2.9% | ||||||||
Bank of America Corp. | 33,211 | 909,317 | ||||||
Citigroup, Inc. | 9,251 | 380,494 | ||||||
Citizens Financial Group, Inc. | 2,276 | 60,997 | ||||||
Comerica, Inc. | 639 | 26,550 | ||||||
Fifth Third Bancorp | 3,300 | 83,589 | ||||||
Huntington Bancshares, Inc. | 6,952 | 72,301 | ||||||
JPMorgan Chase & Co. | 13,961 | 2,024,624 | ||||||
KeyCorp | 4,446 | 47,839 | ||||||
M&T Bank Corp. | 792 | 100,148 | ||||||
PNC Financial Services Group, Inc. (The) | 1,913 | 234,859 | ||||||
Regions Financial Corp. | 4,484 | 77,125 | ||||||
Truist Financial Corp. | 6,419 | 183,648 | ||||||
U.S. Bancorp | 7,470 | 246,958 | ||||||
Zions Bancorp N.A. | 696 | 24,283 | ||||||
|
| |||||||
4,472,732 | ||||||||
Beverages — 1.8% | ||||||||
Brown-Forman Corp., Class B, NVS | 881 | 50,825 | ||||||
Coca-Cola Co. (The) | 18,696 | 1,046,602 | ||||||
Constellation Brands, Inc., Class A | 777 | 195,283 | ||||||
Keurig Dr Pepper, Inc. | 4,850 | 153,114 | ||||||
Molson Coors Beverage Co., Class B | 903 | 57,422 | ||||||
Monster Beverage Corp.(a) | 3,565 | 188,767 | ||||||
PepsiCo, Inc. | 6,613 | 1,120,507 | ||||||
|
| |||||||
2,812,520 | ||||||||
Biotechnology — 2.3% | ||||||||
AbbVie, Inc. | 8,479 | 1,263,880 | ||||||
Amgen, Inc. | 2,570 | 690,713 | ||||||
Biogen, Inc.(a) | 695 | 178,622 | ||||||
Gilead Sciences, Inc. | 5,986 | 448,591 | ||||||
Incyte Corp.(a) | 892 | 51,531 | ||||||
Moderna, Inc.(a) | 1,581 | 163,302 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 513 | 422,178 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 1,242 | 431,893 | ||||||
|
| |||||||
3,650,710 | ||||||||
Broadline Retail — 3.7% | ||||||||
Amazon.com, Inc.(a) | 43,618 | 5,544,720 |
Security | Shares | Value | ||||||
Broadline Retail (continued) | ||||||||
eBay, Inc. | 2,563 | $ | 113,003 | |||||
Etsy, Inc.(a) | 604 | 39,006 | ||||||
|
| |||||||
5,696,729 | ||||||||
Building Products — 0.5% | ||||||||
A O Smith Corp. | 605 | 40,008 | ||||||
Allegion PLC | 421 | 43,868 | ||||||
Carrier Global Corp. | 4,014 | 221,573 | ||||||
Johnson Controls International PLC | 3,256 | 173,252 | ||||||
Masco Corp. | 1,071 | 57,245 | ||||||
Trane Technologies PLC | 1,101 | 223,404 | ||||||
|
| |||||||
759,350 | ||||||||
Capital Markets — 2.9% | ||||||||
Ameriprise Financial, Inc. | 492 | 162,203 | ||||||
Bank of New York Mellon Corp. (The) | 3,723 | 158,786 | ||||||
BlackRock, Inc.(b) | 675 | 436,381 | ||||||
Cboe Global Markets, Inc. | 507 | 79,198 | ||||||
Charles Schwab Corp. (The) | 7,153 | 392,700 | ||||||
CME Group, Inc., Class A | 1,728 | 345,980 | ||||||
FactSet Research Systems, Inc. | 185 | 80,893 | ||||||
Franklin Resources, Inc. | 1,368 | 33,625 | ||||||
Goldman Sachs Group, Inc. (The) | 1,586 | 513,182 | ||||||
Intercontinental Exchange, Inc. | 2,744 | 301,895 | ||||||
Invesco Ltd. | 2,167 | 31,465 | ||||||
MarketAxess Holdings, Inc. | 182 | 38,882 | ||||||
Moody’s Corp. | 760 | 240,289 | ||||||
Morgan Stanley | 6,129 | 500,555 | ||||||
MSCI, Inc., Class A | 381 | 195,484 | ||||||
Nasdaq, Inc. | 1,622 | 78,813 | ||||||
Northern Trust Corp. | 1,000 | 69,480 | ||||||
Raymond James Financial, Inc. | 896 | 89,985 | ||||||
S&P Global, Inc. | 1,563 | 571,136 | ||||||
State Street Corp. | 1,538 | 102,985 | ||||||
T Rowe Price Group, Inc. | 1,076 | 112,840 | ||||||
|
| |||||||
4,536,757 | ||||||||
Chemicals — 1.8% | ||||||||
Air Products & Chemicals, Inc. | 1,067 | 302,388 | ||||||
Albemarle Corp. | 566 | 96,243 | ||||||
Celanese Corp., Class A | 477 | 59,873 | ||||||
CF Industries Holdings, Inc. | 927 | 79,481 | ||||||
Corteva, Inc. | 3,420 | 174,967 | ||||||
Dow, Inc. | 3,383 | 174,427 | ||||||
Eastman Chemical Co. | 573 | 43,961 | ||||||
Ecolab, Inc. | 1,221 | 206,837 | ||||||
FMC Corp. | 605 | 40,517 | ||||||
International Flavors & Fragrances, Inc. | 1,230 | 83,849 | ||||||
Linde PLC | 2,344 | 872,788 | ||||||
LyondellBasell Industries NV, Class A | 1,226 | 116,102 | ||||||
Mosaic Co. (The) | 1,596 | 56,818 | ||||||
PPG Industries, Inc. | 1,134 | 147,193 | ||||||
Sherwin-Williams Co. (The) | 1,133 | 288,972 | ||||||
|
| |||||||
2,744,416 | ||||||||
Commercial Services & Supplies — 0.5% | ||||||||
Cintas Corp. | 415 | 199,619 | ||||||
Copart, Inc.(a) | 4,189 | 180,504 | ||||||
Republic Services, Inc. | 988 | 140,800 | ||||||
Rollins, Inc. | 1,123 | 41,921 | ||||||
Waste Management, Inc. | 1,772 | 270,124 | ||||||
|
| |||||||
832,968 | ||||||||
Communications Equipment — 1.0% | ||||||||
Arista Networks, Inc.(a) | 1,202 | 221,084 |
8 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P 500 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Communications Equipment (continued) | ||||||||
Cisco Systems, Inc. | 19,576 | $ | 1,052,406 | |||||
F5, Inc.(a) | 289 | 46,569 | ||||||
Juniper Networks, Inc. | 1,555 | 43,213 | ||||||
Motorola Solutions, Inc. | 802 | 218,337 | ||||||
|
| |||||||
1,581,609 | ||||||||
Construction & Engineering — 0.1% | ||||||||
Quanta Services, Inc. | 695 | 130,014 | ||||||
|
| |||||||
Construction Materials — 0.2% | ||||||||
Martin Marietta Materials, Inc. | 298 | 122,323 | ||||||
Vulcan Materials Co. | 642 | 129,697 | ||||||
|
| |||||||
252,020 | ||||||||
Consumer Finance — 0.5% | ||||||||
American Express Co. | 2,795 | 416,986 | ||||||
Capital One Financial Corp. | 1,832 | 177,796 | ||||||
Discover Financial Services | 1,198 | 103,783 | ||||||
Synchrony Financial | 2,018 | 61,690 | ||||||
|
| |||||||
760,255 | ||||||||
Consumer Staples Distribution & Retail — 1.3% | ||||||||
Costco Wholesale Corp. | 2,129 | 1,202,800 | ||||||
Dollar General Corp. | 1,056 | 111,725 | ||||||
Dollar Tree, Inc.(a) | 1,012 | 107,727 | ||||||
Kroger Co. (The) | 3,189 | 142,708 | ||||||
Sysco Corp. | 2,432 | 160,633 | ||||||
Target Corp. | 2,217 | 245,134 | ||||||
Walgreens Boots Alliance, Inc. | 3,458 | 76,906 | ||||||
|
| |||||||
2,047,633 | ||||||||
Containers & Packaging — 0.3% | ||||||||
Amcor PLC | 7,088 | 64,926 | ||||||
Avery Dennison Corp. | 385 | 70,328 | ||||||
Ball Corp. | 1,515 | 75,417 | ||||||
International Paper Co. | 1,653 | 58,632 | ||||||
Packaging Corp. of America | 435 | 66,794 | ||||||
Sealed Air Corp. | 681 | 22,378 | ||||||
Westrock Co. | 1,229 | 43,998 | ||||||
|
| |||||||
402,473 | ||||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 676 | 97,601 | ||||||
LKQ Corp. | 1,297 | 64,214 | ||||||
Pool Corp. | 188 | 66,947 | ||||||
|
| |||||||
228,762 | ||||||||
Diversified Telecommunication Services — 0.8% | ||||||||
AT&T Inc. | 34,343 | 515,832 | ||||||
Verizon Communications, Inc. | 20,196 | 654,552 | ||||||
|
| |||||||
1,170,384 | ||||||||
Electric Utilities — 0.8% | ||||||||
Constellation Energy Corp. | 1,550 | 169,074 | ||||||
Edison International | 1,840 | 116,454 | ||||||
Entergy Corp. | 1,012 | 93,610 | ||||||
Eversource Energy | 1,679 | 97,634 | ||||||
Exelon Corp. | 4,766 | 180,107 | ||||||
NextEra Energy, Inc. | 9,722 | 556,973 | ||||||
NRG Energy, Inc. | 1,114 | 42,911 | ||||||
|
| |||||||
1,256,763 | ||||||||
Electrical Equipment — 0.7% | ||||||||
AMETEK, Inc. | 1,102 | 162,832 | ||||||
Eaton Corp. PLC | 1,917 | 408,858 | ||||||
Emerson Electric Co. | 2,748 | 265,374 |
Security | Shares | Value | ||||||
Electrical Equipment (continued) | ||||||||
Generac Holdings, Inc.(a) | 302 | $ | 32,906 | |||||
Rockwell Automation, Inc. | 554 | 158,372 | ||||||
|
| |||||||
1,028,342 | ||||||||
Electronic Equipment, Instruments & Components — 0.6% | ||||||||
Amphenol Corp., Class A | 2,873 | 241,303 | ||||||
CDW Corp. | 644 | 129,934 | ||||||
Corning, Inc. | 3,668 | 111,764 | ||||||
Keysight Technologies, Inc.(a) | 858 | 113,522 | ||||||
TE Connectivity Ltd. | 1,508 | 186,283 | ||||||
Trimble, Inc.(a) | 1,206 | 64,955 | ||||||
Zebra Technologies Corp., Class A(a) | 241 | 57,004 | ||||||
|
| |||||||
904,765 | ||||||||
Energy Equipment & Services — 0.5% | ||||||||
Baker Hughes Co., Class A | 4,851 | 171,337 | ||||||
Halliburton Co. | 4,336 | 175,608 | ||||||
Schlumberger NV | 6,827 | 398,014 | ||||||
|
| |||||||
744,959 | ||||||||
Entertainment — 1.5% | ||||||||
Activision Blizzard, Inc. | 3,445 | 322,555 | ||||||
Electronic Arts, Inc. | 1,180 | 142,072 | ||||||
Live Nation Entertainment, Inc.(a) | 687 | 57,048 | ||||||
Netflix, Inc.(a) | 2,129 | 803,910 | ||||||
Take-Two Interactive Software, Inc.(a) | 753 | 105,714 | ||||||
Walt Disney Co. (The)(a) | 8,790 | 712,430 | ||||||
Warner Bros Discovery, Inc., Class A(a) | 10,730 | 116,528 | ||||||
|
| |||||||
2,260,257 | ||||||||
Financial Services — 4.8% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 8,761 | 3,068,978 | ||||||
Fidelity National Information Services, Inc. | 2,862 | 158,183 | ||||||
Fiserv, Inc.(a) | 2,924 | 330,295 | ||||||
FleetCor Technologies, Inc.(a)(c) | 349 | 89,114 | ||||||
Global Payments, Inc. | 1,252 | 144,468 | ||||||
Jack Henry & Associates, Inc. | 354 | 53,504 | ||||||
Mastercard, Inc., Class A | 3,997 | 1,582,452 | ||||||
PayPal Holdings, Inc.(a) | 5,273 | 308,260 | ||||||
Visa, Inc., Class A | 7,719 | 1,775,447 | ||||||
|
| |||||||
7,510,701 | ||||||||
Food Products — 1.1% | ||||||||
Archer-Daniels-Midland Co. | 2,586 | 195,036 | ||||||
Bunge Ltd. | 718 | 77,723 | ||||||
Campbell Soup Co. | 940 | 38,615 | ||||||
Conagra Brands, Inc. | 2,287 | 62,710 | ||||||
General Mills, Inc. | 2,813 | 180,004 | ||||||
Hershey Co. (The) | 718 | 143,657 | ||||||
Hormel Foods Corp. | 1,410 | 53,622 | ||||||
J M Smucker Co. (The) | 494 | 60,718 | ||||||
Kellanova | 1,275 | 75,875 | ||||||
Kraft Heinz Co. (The) | 3,819 | 128,471 | ||||||
Lamb Weston Holdings, Inc. | 697 | 64,445 | ||||||
McCormick & Co., Inc., NVS | 1,212 | 91,676 | ||||||
Mondelez International, Inc., Class A | 6,535 | 453,529 | ||||||
Tyson Foods, Inc., Class A | 1,374 | 69,373 | ||||||
|
| |||||||
1,695,454 | ||||||||
Gas Utilities — 0.0% | ||||||||
Atmos Energy Corp. | 707 | 74,893 | ||||||
|
| |||||||
Ground Transportation — 0.9% | ||||||||
CSX Corp. | 9,629 | 296,092 | ||||||
JB Hunt Transport Services, Inc. | 390 | 73,523 | ||||||
Norfolk Southern Corp. | 1,091 | 214,850 |
SCHEDULES OF INVESTMENTS | 9 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P 500 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Ground Transportation (continued) | ||||||||
Old Dominion Freight Line, Inc. | 428 | $ | 175,112 | |||||
Union Pacific Corp. | 2,928 | 596,229 | ||||||
|
| |||||||
1,355,806 | ||||||||
Health Care Equipment & Supplies — 2.9% | ||||||||
Abbott Laboratories | 8,337 | 807,438 | ||||||
Align Technology, Inc.(a) | 336 | 102,588 | ||||||
Baxter International, Inc. | 2,447 | 92,350 | ||||||
Becton Dickinson & Co. | 1,395 | 360,649 | ||||||
Boston Scientific Corp.(a) | 7,031 | 371,237 | ||||||
Cooper Cos., Inc. (The) | 238 | 75,686 | ||||||
DENTSPLY SIRONA, Inc. | 1,037 | 35,424 | ||||||
Dexcom, Inc.(a) | 1,857 | 173,258 | ||||||
Edwards Lifesciences Corp.(a) | 2,928 | 202,852 | ||||||
GE HealthCare Technologies, Inc. | 1,877 | 127,711 | ||||||
Hologic, Inc.(a) | 1,188 | 82,447 | ||||||
IDEXX Laboratories, Inc.(a) | 399 | 174,471 | ||||||
Insulet Corp.(a) | 334 | 53,270 | ||||||
Intuitive Surgical, Inc.(a) | 1,690 | 493,970 | ||||||
Medtronic PLC | 6,393 | 500,955 | ||||||
ResMed, Inc. | 703 | 103,953 | ||||||
STERIS PLC | 476 | 104,444 | ||||||
Stryker Corp. | 1,624 | 443,790 | ||||||
Teleflex, Inc. | 224 | 43,996 | ||||||
Zimmer Biomet Holdings, Inc. | 1,010 | 113,342 | ||||||
|
| |||||||
4,463,831 | ||||||||
Health Care Providers & Services — 3.3% | ||||||||
Cardinal Health, Inc. | 1,221 | 106,007 | ||||||
Cencora, Inc. | 800 | 143,976 | ||||||
Centene Corp.(a) | 2,593 | 178,606 | ||||||
Cigna Group (The) | 1,423 | 407,078 | ||||||
CVS Health Corp. | 6,170 | 430,789 | ||||||
DaVita, Inc.(a) | 255 | 24,105 | ||||||
Elevance Health, Inc. | 1,131 | 492,460 | ||||||
HCA Healthcare, Inc. | 966 | 237,617 | ||||||
Henry Schein, Inc.(a) | 624 | 46,332 | ||||||
Humana, Inc. | 595 | 289,479 | ||||||
Laboratory Corp. of America Holdings | 426 | 85,647 | ||||||
McKesson Corp. | 650 | 282,653 | ||||||
Molina Healthcare, Inc.(a) | 282 | 92,465 | ||||||
Quest Diagnostics, Inc. | 538 | 65,561 | ||||||
UnitedHealth Group, Inc. | 4,450 | 2,243,646 | ||||||
Universal Health Services, Inc., Class B | 295 | 37,090 | ||||||
|
| |||||||
5,163,511 | ||||||||
Health Care REITs — 0.2% | ||||||||
Healthpeak Properties, Inc. | 2,668 | 48,984 | ||||||
Ventas, Inc. | 1,914 | 80,637 | ||||||
Welltower, Inc. | 2,485 | 203,571 | ||||||
|
| |||||||
333,192 | ||||||||
Hotel & Resort REITs — 0.0% | ||||||||
Host Hotels & Resorts, Inc. | 3,449 | 55,425 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.2% | ||||||||
Booking Holdings, Inc.(a) | 170 | 524,272 | ||||||
Caesars Entertainment, Inc.(a) | 1,036 | 48,019 | ||||||
Carnival Corp.(a) | 4,863 | 66,720 | ||||||
Chipotle Mexican Grill, Inc.(a)(c) | 133 | 243,633 | ||||||
Darden Restaurants, Inc. | 586 | 83,927 | ||||||
Domino’s Pizza, Inc. | 167 | 63,258 | ||||||
Expedia Group, Inc.(a) | 664 | 68,438 | ||||||
Hilton Worldwide Holdings, Inc. | 1,253 | 188,176 | ||||||
Las Vegas Sands Corp. | 1,573 | 72,106 |
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
Marriott International, Inc., Class A | 1,204 | $ | 236,658 | |||||
McDonald’s Corp. | 3,501 | 922,303 | ||||||
MGM Resorts International | 1,356 | 49,847 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) | 2,068 | 34,081 | ||||||
Royal Caribbean Cruises Ltd.(a) | 1,135 | 104,579 | ||||||
Starbucks Corp. | 5,502 | 502,168 | ||||||
Wynn Resorts Ltd. | 466 | 43,063 | ||||||
Yum! Brands, Inc. | 1,344 | 167,919 | ||||||
|
| |||||||
3,419,167 | ||||||||
Household Durables — 0.4% | ||||||||
DR Horton, Inc. | 1,458 | 156,691 | ||||||
Garmin Ltd. | 734 | 77,217 | ||||||
Lennar Corp., Class A | 1,210 | 135,798 | ||||||
Mohawk Industries, Inc.(a) | 257 | 22,053 | ||||||
NVR, Inc.(a) | 16 | 95,413 | ||||||
PulteGroup, Inc. | 1,059 | 78,419 | ||||||
Whirlpool Corp. | 265 | 35,431 | ||||||
|
| |||||||
601,022 | ||||||||
Household Products — 1.5% | ||||||||
Church & Dwight Co., Inc. | 1,187 | 108,765 | ||||||
Clorox Co. (The) | 592 | 77,587 | ||||||
Colgate-Palmolive Co. | 3,982 | 283,160 | ||||||
Kimberly-Clark Corp. | 1,627 | 196,623 | ||||||
Procter & Gamble Co. (The) | 11,324 | 1,651,719 | ||||||
|
| |||||||
2,317,854 | ||||||||
Industrial Conglomerates — 0.4% | ||||||||
General Electric Co. | 5,228 | 577,955 | ||||||
|
| |||||||
Industrial REITs — 0.3% | ||||||||
Prologis, Inc. | 4,438 | 497,988 | ||||||
|
| |||||||
Insurance — 2.4% | ||||||||
Aflac, Inc. | 2,590 | 198,783 | ||||||
Allstate Corp. (The) | 1,252 | 139,485 | ||||||
American International Group, Inc. | 3,433 | 208,040 | ||||||
Aon PLC, Class A | 975 | 316,114 | ||||||
Arch Capital Group Ltd.(a) | 1,786 | 142,362 | ||||||
Arthur J. Gallagher & Co. | 1,038 | 236,591 | ||||||
Assurant, Inc. | 255 | 36,613 | ||||||
Brown & Brown, Inc. | 1,135 | 79,268 | ||||||
Chubb Ltd. | 1,970 | 410,115 | ||||||
Cincinnati Financial Corp. | 746 | 76,308 | ||||||
Everest Group Ltd. | 209 | 77,679 | ||||||
Globe Life, Inc. | 418 | 45,449 | ||||||
Hartford Financial Services Group, Inc. (The) | 1,473 | 104,450 | ||||||
Loews Corp. | 893 | 56,536 | ||||||
Marsh & McLennan Cos., Inc. | 2,378 | 452,533 | ||||||
MetLife, Inc. | 3,045 | 191,561 | ||||||
Principal Financial Group, Inc. | 1,068 | 76,971 | ||||||
Progressive Corp. (The) | 2,812 | 391,712 | ||||||
Prudential Financial, Inc. | 1,744 | 165,488 | ||||||
Travelers Cos., Inc. (The) | 1,099 | 179,478 | ||||||
W R Berkley Corp. | 983 | 62,411 | ||||||
Willis Towers Watson PLC | 504 | 105,316 | ||||||
|
| |||||||
3,753,263 | ||||||||
Interactive Media & Services — 6.5% | ||||||||
Alphabet, Inc., Class A(a) | 28,502 | 3,729,772 | ||||||
Alphabet, Inc., Class C, NVS(a) | 24,245 | 3,196,703 | ||||||
Match Group, Inc.(a) | 1,340 | 52,495 | ||||||
Meta Platforms, Inc., Class A(a) | 10,677 | 3,205,342 | ||||||
|
| |||||||
10,184,312 |
10 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P 500 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
IT Services — 1.3% | ||||||||
Accenture PLC, Class A | 3,030 | $ | 930,543 | |||||
Akamai Technologies, Inc.(a) | 727 | 77,455 | ||||||
Cognizant Technology Solutions Corp., Class A | 2,440 | 165,286 | ||||||
DXC Technology Co.(a) | 992 | 20,663 | ||||||
EPAM Systems, Inc.(a) | 278 | 71,082 | ||||||
Gartner, Inc.(a) | 377 | 129,541 | ||||||
International Business Machines Corp. | 4,376 | 613,953 | ||||||
VeriSign, Inc.(a) | 433 | 87,695 | ||||||
|
| |||||||
2,096,218 | ||||||||
Leisure Products — 0.0% | ||||||||
Hasbro, Inc. | 639 | 42,263 | ||||||
|
| |||||||
Life Sciences Tools & Services — 1.7% | ||||||||
Agilent Technologies, Inc. | 1,427 | 159,567 | ||||||
Bio-Rad Laboratories, Inc., Class A(a) | 103 | 36,920 | ||||||
Bio-Techne Corp. | 748 | 50,916 | ||||||
Charles River Laboratories International, Inc.(a) | 237 | 46,447 | ||||||
Danaher Corp. | 3,157 | 783,252 | ||||||
Illumina, Inc.(a) | 759 | 104,196 | ||||||
IQVIA Holdings, Inc.(a) | 878 | 172,747 | ||||||
Mettler-Toledo International, Inc.(a) | 105 | 116,347 | ||||||
Revvity, Inc. | 592 | 65,534 | ||||||
Thermo Fisher Scientific, Inc. | 1,854 | 938,439 | ||||||
Waters Corp.(a) | 283 | 77,602 | ||||||
West Pharmaceutical Services, Inc. | 351 | 131,699 | ||||||
|
| |||||||
2,683,666 | ||||||||
Machinery — 2.0% | ||||||||
Caterpillar, Inc. | 2,451 | 669,123 | ||||||
Cummins, Inc. | 680 | 155,353 | ||||||
Deere & Co. | 1,312 | 495,123 | ||||||
Dover Corp. | 673 | 93,890 | ||||||
Fortive Corp. | 1,697 | 125,850 | ||||||
IDEX Corp. | 365 | 75,927 | ||||||
Illinois Tool Works, Inc. | 1,319 | 303,779 | ||||||
Ingersoll Rand, Inc. | 1,938 | 123,489 | ||||||
Nordson Corp. | 257 | 57,355 | ||||||
Otis Worldwide Corp. | 1,971 | 158,291 | ||||||
PACCAR, Inc. | 2,522 | 214,420 | ||||||
Parker-Hannifin Corp. | 616 | 239,944 | ||||||
Pentair PLC | 799 | 51,735 | ||||||
Snap-on, Inc. | 250 | 63,765 | ||||||
Stanley Black & Decker, Inc. | 732 | 61,181 | ||||||
Westinghouse Air Brake Technologies Corp. | 861 | 91,498 | ||||||
Xylem, Inc. | 1,149 | 104,594 | ||||||
|
| |||||||
3,085,317 | ||||||||
Media — 0.9% | ||||||||
Charter Communications, Inc., Class A(a)(c) | 489 | 215,072 | ||||||
Comcast Corp., Class A | 19,771 | 876,646 | ||||||
Fox Corp., Class A, NVS | 1,221 | 38,095 | ||||||
Fox Corp., Class B | 665 | 19,205 | ||||||
Interpublic Group of Cos., Inc. (The) | 1,837 | 52,649 | ||||||
News Corp., Class A, NVS | 1,798 | 36,068 | ||||||
News Corp., Class B | 600 | 12,522 | ||||||
Omnicom Group, Inc. | 952 | 70,905 | ||||||
Paramount Global, Class B, NVS | 2,309 | 29,786 | ||||||
|
| |||||||
1,350,948 | ||||||||
Metals & Mining — 0.4% | ||||||||
Freeport-McMoRan, Inc. | 6,887 | 256,816 | ||||||
Newmont Corp. | 3,827 | 141,408 |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Nucor Corp. | 1,193 | $ | 186,525 | |||||
Steel Dynamics, Inc. | 749 | 80,308 | ||||||
|
| |||||||
665,057 | ||||||||
Multi-Utilities — 0.4% | ||||||||
CenterPoint Energy, Inc. | 3,063 | 82,242 | ||||||
Consolidated Edison, Inc. | 1,657 | 141,723 | ||||||
Public Service Enterprise Group, Inc. | 2,400 | 136,584 | ||||||
Sempra | 3,014 | 205,042 | ||||||
|
| |||||||
565,591 | ||||||||
Office REITs — 0.1% | ||||||||
Alexandria Real Estate Equities, Inc. | 753 | 75,376 | ||||||
Boston Properties, Inc. | 686 | 40,803 | ||||||
|
| |||||||
116,179 | ||||||||
Oil, Gas & Consumable Fuels — 0.9% | ||||||||
Kinder Morgan, Inc. | 9,360 | 155,189 | ||||||
Marathon Petroleum Corp. | 1,920 | 290,573 | ||||||
ONEOK, Inc. | 2,810 | 178,238 | ||||||
Phillips 66 | 2,139 | 257,001 | ||||||
Targa Resources Corp. | 1,082 | 92,749 | ||||||
Valero Energy Corp. | 1,691 | 239,631 | ||||||
Williams Cos., Inc. (The) | 5,823 | 196,177 | ||||||
|
| |||||||
1,409,558 | ||||||||
Passenger Airlines — 0.2% | ||||||||
Alaska Air Group, Inc.(a) | 612 | 22,693 | ||||||
American Airlines Group, Inc.(a)(c) | 3,127 | 40,057 | ||||||
Delta Air Lines, Inc. | 3,081 | 113,997 | ||||||
Southwest Airlines Co. | 2,866 | 77,582 | ||||||
United Airlines Holdings, Inc.(a) | 1,580 | 66,834 | ||||||
|
| |||||||
321,163 | ||||||||
Personal Care Products — 0.1% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 1,116 | 161,318 | ||||||
|
| |||||||
Pharmaceuticals — 3.4% | ||||||||
Bristol-Myers Squibb Co. | 10,036 | 582,489 | ||||||
Catalent, Inc.(a) | 853 | 38,837 | ||||||
Eli Lilly & Co. | 3,831 | 2,057,745 | ||||||
Merck & Co., Inc. | 12,190 | 1,254,960 | ||||||
Organon & Co. | 1,207 | 20,954 | ||||||
Pfizer, Inc. | 27,123 | 899,670 | ||||||
Viatris, Inc. | 5,814 | 57,326 | ||||||
Zoetis, Inc., Class A | 2,210 | 384,496 | ||||||
|
| |||||||
5,296,477 | ||||||||
Professional Services — 0.8% | ||||||||
Automatic Data Processing, Inc. | 1,978 | 475,867 | ||||||
Broadridge Financial Solutions, Inc. | 568 | 101,700 | ||||||
Ceridian HCM Holding, Inc.(a) | 744 | 50,480 | ||||||
Equifax, Inc. | 590 | 108,076 | ||||||
Paychex, Inc. | 1,550 | 178,762 | ||||||
Paycom Software, Inc. | 236 | 61,188 | ||||||
Robert Half, Inc. | 516 | 37,813 | ||||||
Verisk Analytics, Inc.(c) | 695 | 164,187 | ||||||
|
| |||||||
1,178,073 | ||||||||
Real Estate Management & Development — 0.2% | ||||||||
CBRE Group, Inc., Class A(a) | 1,491 | 110,125 | ||||||
CoStar Group, Inc.(a) | 1,970 | 151,474 | ||||||
|
| |||||||
261,599 | ||||||||
Residential REITs — 0.3% | ||||||||
AvalonBay Communities, Inc. | 686 | 117,814 | ||||||
Camden Property Trust | 520 | 49,181 |
SCHEDULES OF INVESTMENTS | 11 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P 500 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Residential REITs (continued) | ||||||||
Equity Residential | 1,644 | $ | 96,519 | |||||
Essex Property Trust, Inc. | 310 | 65,748 | ||||||
Invitation Homes, Inc. | 2,775 | 87,940 | ||||||
Mid-America Apartment Communities, Inc. | 558 | 71,787 | ||||||
UDR, Inc. | 1,435 | 51,186 | ||||||
|
| |||||||
540,175 | ||||||||
Retail REITs — 0.3% | ||||||||
Federal Realty Investment Trust | 355 | 32,174 | ||||||
Kimco Realty Corp. | 2,979 | 52,400 | ||||||
Realty Income Corp. | 3,416 | 170,595 | ||||||
Regency Centers Corp. | 797 | 47,374 | ||||||
Simon Property Group, Inc. | 1,565 | 169,067 | ||||||
|
| |||||||
471,610 | ||||||||
Semiconductors & Semiconductor Equipment — 8.2% | ||||||||
Advanced Micro Devices, Inc.(a) | 7,762 | 798,089 | ||||||
Analog Devices, Inc. | 2,409 | 421,792 | ||||||
Applied Materials, Inc. | 4,034 | 558,507 | ||||||
Broadcom, Inc. | 1,983 | 1,647,040 | ||||||
Enphase Energy, Inc.(a)(c) | 656 | 78,818 | ||||||
First Solar, Inc.(a) | 510 | 82,411 | ||||||
Intel Corp. | 20,119 | 715,230 | ||||||
KLA Corp. | 658 | 301,798 | ||||||
Lam Research Corp. | 640 | 401,133 | ||||||
Microchip Technology, Inc. | 2,610 | 203,710 | ||||||
Micron Technology, Inc. | 5,271 | 358,586 | ||||||
Monolithic Power Systems, Inc. | 230 | 106,260 | ||||||
NVIDIA Corp. | 11,866 | 5,161,591 | ||||||
NXP Semiconductors NV | 1,236 | 247,101 | ||||||
ON Semiconductor Corp.(a) | 2,068 | 192,221 | ||||||
Qorvo, Inc.(a) | 464 | 44,298 | ||||||
QUALCOMM, Inc. | 5,361 | 595,393 | ||||||
Skyworks Solutions, Inc. | 769 | 75,816 | ||||||
SolarEdge Technologies, Inc.(a)(c) | 264 | 34,191 | ||||||
Teradyne, Inc. | 743 | 74,642 | ||||||
Texas Instruments, Inc. | 4,362 | 693,602 | ||||||
|
| |||||||
12,792,229 | ||||||||
Software — 11.2% | ||||||||
Adobe, Inc.(a) | 2,190 | 1,116,681 | ||||||
ANSYS, Inc.(a) | 417 | 124,078 | ||||||
Autodesk, Inc.(a) | 1,024 | 211,876 | ||||||
Cadence Design Systems, Inc.(a) | 1,308 | 306,464 | ||||||
Fair Isaac Corp.(a) | 119 | 103,355 | ||||||
Fortinet, Inc.(a)(c) | 3,135 | 183,962 | ||||||
Gen Digital, Inc. | 2,745 | 48,532 | ||||||
Intuit, Inc. | 1,345 | 687,214 | ||||||
Microsoft Corp. | 35,692 | 11,269,749 | ||||||
Oracle Corp. | 7,563 | 801,073 | ||||||
Palo Alto Networks, Inc.(a) | 1,469 | 344,392 | ||||||
PTC, Inc.(a) | 573 | 81,183 | ||||||
Roper Technologies, Inc. | 513 | 248,436 | ||||||
Salesforce, Inc.(a) | 4,679 | 948,808 | ||||||
ServiceNow, Inc.(a) | 980 | 547,781 | ||||||
Synopsys, Inc.(a) | 731 | 335,507 | ||||||
Tyler Technologies, Inc.(a) | 203 | 78,386 | ||||||
|
| |||||||
17,437,477 | ||||||||
Specialized REITs — 1.2% | ||||||||
American Tower Corp. | 2,239 | 368,204 | ||||||
Crown Castle, Inc. | 2,079 | 191,330 | ||||||
Digital Realty Trust, Inc. | 1,450 | 175,479 | ||||||
Equinix, Inc. | 448 | 325,365 | ||||||
Extra Space Storage, Inc. | 1,014 | 123,282 |
Security | Shares | Value | ||||||
Specialized REITs (continued) | ||||||||
Iron Mountain, Inc. | 1,406 | $ | 83,587 | |||||
Public Storage | 762 | 200,802 | ||||||
SBA Communications Corp., Class A | 521 | 104,289 | ||||||
VICI Properties, Inc. | 4,890 | 142,299 | ||||||
Weyerhaeuser Co. | 3,528 | 108,168 | ||||||
|
| |||||||
1,822,805 | ||||||||
Specialty Retail — 2.3% | ||||||||
AutoZone, Inc.(a) | 87 | 220,979 | ||||||
Bath & Body Works, Inc. | 1,078 | 36,436 | ||||||
Best Buy Co., Inc. | 927 | 64,399 | ||||||
CarMax, Inc.(a) | 764 | 54,038 | ||||||
Home Depot, Inc. (The) | 4,830 | 1,459,433 | ||||||
Lowe’s Cos., Inc. | 2,815 | 585,070 | ||||||
O’Reilly Automotive, Inc.(a) | 290 | 263,569 | ||||||
Ross Stores, Inc. | 1,642 | 185,464 | ||||||
TJX Cos., Inc. (The) | 5,521 | 490,706 | ||||||
Tractor Supply Co. | 523 | 106,195 | ||||||
Ulta Beauty, Inc.(a) | 237 | 94,670 | ||||||
|
| |||||||
3,560,959 | ||||||||
Technology Hardware, Storage & Peripherals — 8.0% | ||||||||
Apple Inc. | 70,599 | 12,087,255 | ||||||
Hewlett Packard Enterprise Co. | 6,200 | 107,694 | ||||||
HP, Inc. | 4,164 | 107,015 | ||||||
NetApp, Inc. | 1,012 | 76,790 | ||||||
Seagate Technology Holdings PLC | 924 | 60,938 | ||||||
Western Digital Corp.(a) | 1,539 | 70,225 | ||||||
|
| |||||||
12,509,917 | ||||||||
Textiles, Apparel & Luxury Goods — 0.4% | ||||||||
NIKE, Inc., Class B | 5,885 | 562,724 | ||||||
Ralph Lauren Corp., Class A | 195 | 22,638 | ||||||
Tapestry, Inc. | 1,123 | 32,286 | ||||||
VF Corp. | 1,617 | 28,572 | ||||||
|
| |||||||
646,220 | ||||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 2,754 | 150,479 | ||||||
United Rentals, Inc. | 328 | 145,819 | ||||||
|
| |||||||
296,298 | ||||||||
Water Utilities — 0.1% | ||||||||
American Water Works Co., Inc. | 932 | 115,410 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.2% | ||||||||
T-Mobile U.S., Inc.(a) | 2,486 | 348,164 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% | 155,347,591 | |||||||
|
|
12 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P 500 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Short-Term Securities | ||||||||
Money Market Funds — 1.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(b)(d)(e) | 718,644 | $ | 718,932 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(d) | 955,935 | 955,935 | ||||||
|
| |||||||
Total Short-Term Securities — 1.1% | 1,674,867 | |||||||
|
| |||||||
Total Investments — 100.9% | 157,022,458 | |||||||
Liabilities in Excess of Other Assets — (0.9)% |
| (1,338,514 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 155,683,944 | ||||||
|
|
(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | All or a portion of this security is on loan. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain | |||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 68,967 | $ | 649,829 | (a) | $ | — | $ | 96 | $ | 40 | $ | 718,932 | 718,644 | $ | 648 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 167,581 | 788,354 | (a) | — | — | — | 955,935 | 955,935 | 6,843 | — | ||||||||||||||||||||||||||
BlackRock, Inc. | 420,876 | 173,143 | (144,053 | ) | (9,233 | ) | (4,352 | ) | 436,381 | 675 | 8,320 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (9,137 | ) | $ | (4,312 | ) | $ | 2,111,248 | $ | 15,811 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Micro E-Mini S&P 500 Index | 14 | 12/15/23 | $ | 303 | $ | (12,552 | ) | |||||||||
|
|
SCHEDULES OF INVESTMENTS | 13 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P 500 ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 12,552 | $ | — | $ | — | $ | — | $ | 12,552 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 29,614 | $ | — | $ | — | $ | — | $ | 29,614 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (25,846 | ) | $ | — | $ | — | $ | — | $ | (25,846 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 364,584 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 155,347,591 | $ | — | $ | — | $ | 155,347,591 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 1,674,867 | — | — | 1,674,867 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 157,022,458 | $ | — | $ | — | $ | 157,022,458 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (12,552 | ) | $ | — | $ | — | $ | (12,552 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
14 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.0% | ||||||||
Curtiss-Wright Corp. | 2,151 | $ | 420,800 | |||||
Hexcel Corp. | 4,755 | 309,741 | ||||||
Woodward, Inc. | 3,392 | 421,490 | ||||||
|
| |||||||
1,152,031 | ||||||||
Air Freight & Logistics — 0.3% | ||||||||
GXO Logistics, Inc.(a) | 6,678 | 391,665 | ||||||
|
| |||||||
Automobile Components — 1.9% | ||||||||
Adient PLC(a) | 5,275 | 193,592 | ||||||
Autoliv, Inc. | 4,266 | 411,584 | ||||||
Fox Factory Holding Corp.(a) | 2,372 | 235,018 | ||||||
Gentex Corp. | 13,106 | 426,469 | ||||||
Goodyear Tire & Rubber Co. (The)(a) | 15,962 | 198,408 | ||||||
Lear Corp. | 3,298 | 442,592 | ||||||
Visteon Corp.(a) | 1,588 | 219,255 | ||||||
|
| |||||||
2,126,918 | ||||||||
Automobiles — 0.5% | ||||||||
Harley-Davidson, Inc. | 7,266 | 240,214 | ||||||
Thor Industries, Inc. | 3,001 | 285,485 | ||||||
|
| |||||||
525,699 | ||||||||
Banks — 5.8% | ||||||||
Associated Banc-Corp. | 8,528 | 145,914 | ||||||
Bank OZK | 5,931 | 219,862 | ||||||
Cadence Bank | 8,307 | 176,274 | ||||||
Columbia Banking System, Inc. | 11,752 | 238,566 | ||||||
Commerce Bancshares, Inc. | 6,388 | 306,496 | ||||||
Cullen/Frost Bankers, Inc. | 3,603 | 328,630 | ||||||
East West Bancorp, Inc. | 7,944 | 418,728 | ||||||
First Financial Bankshares, Inc. | 7,247 | 182,045 | ||||||
First Horizon Corp. | 31,381 | 345,819 | ||||||
FNB Corp. | 20,225 | 218,228 | ||||||
Glacier Bancorp, Inc. | 6,258 | 178,353 | ||||||
Hancock Whitney Corp. | 4,861 | 179,808 | ||||||
Home BancShares, Inc. | 10,619 | 222,362 | ||||||
International Bancshares Corp. | 3,014 | 130,627 | ||||||
New York Community Bancorp, Inc., Class A | 40,563 | 459,984 | ||||||
Old National Bancorp | 16,486 | 239,706 | ||||||
Pinnacle Financial Partners, Inc. | 4,321 | 289,680 | ||||||
Prosperity Bancshares, Inc. | 5,277 | 288,019 | ||||||
SouthState Corp. | 4,280 | 288,301 | ||||||
Synovus Financial Corp. | 8,236 | 228,961 | ||||||
Texas Capital Bancshares, Inc.(a) | 2,712 | 159,737 | ||||||
UMB Financial Corp. | 2,467 | 153,077 | ||||||
United Bankshares, Inc. | 7,583 | 209,215 | ||||||
Valley National Bancorp | 24,041 | 205,791 | ||||||
Webster Financial Corp. | 9,729 | 392,176 | ||||||
Wintrust Financial Corp. | 3,448 | 260,324 | ||||||
|
| |||||||
6,466,683 | ||||||||
Beverages — 0.8% | ||||||||
Boston Beer Co., Inc. (The), Class A, NVS(a) | 533 | 207,620 | ||||||
Celsius Holdings, Inc.(a) | 2,763 | 474,131 | ||||||
Coca-Cola Consolidated, Inc. | 264 | 167,988 | ||||||
|
| |||||||
849,739 | ||||||||
Biotechnology — 1.8% | ||||||||
Arrowhead Pharmaceuticals, Inc.(a)(b) | 6,011 | 161,516 | ||||||
Exelixis, Inc.(a) | 17,875 | 390,569 | ||||||
Halozyme Therapeutics, Inc.(a) | 7,429 | 283,788 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Neurocrine Biosciences, Inc.(a) | 5,483 | $ | 616,837 | |||||
United Therapeutics Corp.(a) | 2,635 | 595,167 | ||||||
|
| |||||||
2,047,877 | ||||||||
Broadline Retail — 0.6% | ||||||||
Kohl’s Corp. | 6,202 | 129,994 | ||||||
Macy’s, Inc. | 15,359 | 178,318 | ||||||
Nordstrom, Inc. | 5,433 | 81,169 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.(a) | 3,475 | 268,200 | ||||||
|
| |||||||
657,681 | ||||||||
Building Products — 4.4% | ||||||||
Advanced Drainage Systems, Inc. | 3,888 | 442,571 | ||||||
Builders FirstSource, Inc.(a)(b) | 7,020 | 873,920 | ||||||
Carlisle Cos., Inc. | 2,803 | 726,706 | ||||||
Fortune Brands Innovations, Inc. | 7,124 | 442,828 | ||||||
Lennox International, Inc. | 1,795 | 672,120 | ||||||
Owens Corning | 5,044 | 688,052 | ||||||
Simpson Manufacturing Co., Inc. | 2,397 | 359,095 | �� | |||||
Trex Co., Inc.(a)(b) | 6,096 | 375,696 | ||||||
UFP Industries, Inc. | 3,471 | 355,430 | ||||||
|
| |||||||
4,936,418 | ||||||||
Capital Markets — 2.2% | ||||||||
Affiliated Managers Group, Inc. | 1,971 | 256,900 | ||||||
Evercore, Inc., Class A | 1,965 | 270,934 | ||||||
Federated Hermes, Inc., Class B | 4,951 | 167,690 | ||||||
Interactive Brokers Group, Inc., Class A | 6,006 | 519,879 | ||||||
Janus Henderson Group PLC | 7,464 | 192,721 | ||||||
Jefferies Financial Group, Inc. | 9,926 | 363,589 | ||||||
SEI Investments Co. | 5,651 | 340,360 | ||||||
Stifel Financial Corp. | 5,867 | 360,469 | ||||||
|
| |||||||
2,472,542 | ||||||||
Chemicals — 2.2% | ||||||||
Ashland, Inc. | 2,869 | 234,340 | ||||||
Avient Corp. | 5,131 | 181,227 | ||||||
Axalta Coating Systems Ltd.(a) | 12,454 | 335,013 | ||||||
Cabot Corp. | 3,149 | 218,131 | ||||||
Chemours Co. (The) | 8,331 | 233,685 | ||||||
NewMarket Corp. | 388 | 176,556 | ||||||
RPM International, Inc. | 7,246 | 686,993 | ||||||
Scotts Miracle-Gro Co. (The) | 2,327 | 120,259 | ||||||
Westlake Corp. | 1,799 | 224,281 | ||||||
|
| |||||||
2,410,485 | ||||||||
Commercial Services & Supplies — 1.5% | ||||||||
Brink’s Co. (The) | 2,619 | 190,244 | ||||||
Clean Harbors, Inc.(a) | 2,827 | 473,127 | ||||||
MSA Safety, Inc. | 2,075 | 327,124 | ||||||
Stericycle, Inc.(a) | 5,204 | 232,671 | ||||||
Tetra Tech, Inc. | 2,989 | 454,417 | ||||||
|
| |||||||
1,677,583 | ||||||||
Communications Equipment — 0.6% | ||||||||
Calix, Inc.(a) | 3,305 | 151,501 | ||||||
Ciena Corp.(a)(b) | 8,394 | 396,701 | ||||||
Lumentum Holdings, Inc.(a) | 3,872 | 174,937 | ||||||
|
| |||||||
723,139 | ||||||||
Construction & Engineering — 1.8% | ||||||||
AECOM | 7,789 | 646,798 | ||||||
EMCOR Group, Inc. | 2,646 | 556,692 | ||||||
MasTec, Inc.(a) | 3,400 | 244,698 |
SCHEDULES OF INVESTMENTS | 15 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
MDU Resources Group, Inc. | 11,401 | $ | 223,232 | |||||
Valmont Industries, Inc. | 1,184 | 284,409 | ||||||
|
| |||||||
1,955,829 | ||||||||
Construction Materials — 0.4% | ||||||||
Eagle Materials, Inc. | 1,991 | 331,541 | ||||||
Knife River Corp.(a) | 2,854 | 139,361 | ||||||
|
| |||||||
470,902 | ||||||||
Consumer Finance — 0.2% | ||||||||
SLM Corp. | 12,707 | 173,069 | ||||||
|
| |||||||
Consumer Staples Distribution & Retail — 1.3% | ||||||||
BJ’s Wholesale Club Holdings, Inc.(a)(b) | 7,544 | 538,415 | ||||||
Grocery Outlet Holding Corp.(a) | 5,540 | 159,829 | ||||||
Sprouts Farmers Market, Inc.(a) | 5,738 | 245,587 | ||||||
U.S. Foods Holding Corp.(a) | 12,753 | 506,294 | ||||||
|
| |||||||
1,450,125 | ||||||||
Containers & Packaging — 2.2% | ||||||||
AptarGroup, Inc. | 3,685 | 460,772 | ||||||
Berry Global Group, Inc. | 6,631 | 410,525 | ||||||
Crown Holdings, Inc. | 6,774 | 599,364 | ||||||
Graphic Packaging Holding Co. | 17,250 | 384,330 | ||||||
Greif, Inc., Class A, NVS | 1,430 | 95,538 | ||||||
Silgan Holdings, Inc. | 4,704 | 202,789 | ||||||
Sonoco Products Co. | 5,516 | 299,795 | ||||||
|
| |||||||
2,453,113 | ||||||||
Diversified Consumer Services — 1.0% | ||||||||
Graham Holdings Co., Class B | 208 | 121,264 | ||||||
Grand Canyon Education, Inc.(a)(b) | 1,680 | 196,358 | ||||||
H&R Block, Inc. | 8,553 | 368,292 | ||||||
Service Corp. International | 8,470 | 483,976 | ||||||
|
| |||||||
1,169,890 | ||||||||
Diversified Telecommunication Services — 0.5% | ||||||||
Frontier Communications Parent, Inc.(a)(b) | 12,484 | 195,374 | ||||||
Iridium Communications, Inc. | 7,026 | 319,613 | ||||||
|
| |||||||
514,987 | ||||||||
Electrical Equipment — 2.4% | ||||||||
Acuity Brands, Inc. | 1,758 | 299,405 | ||||||
EnerSys | 2,310 | 218,688 | ||||||
Hubbell, Inc. | 3,011 | 943,677 | ||||||
nVent Electric PLC | 9,307 | 493,178 | ||||||
Regal Rexnord Corp. | 3,723 | 531,942 | ||||||
Sunrun, Inc.(a)(b) | 12,159 | 152,717 | ||||||
Vicor Corp.(a) | 1,258 | 74,084 | ||||||
|
| |||||||
2,713,691 | ||||||||
Electronic Equipment, Instruments & Components — 4.1% | ||||||||
Arrow Electronics, Inc.(a) | 3,125 | 391,375 | ||||||
Avnet, Inc. | 5,141 | 247,745 | ||||||
Belden, Inc. | 2,384 | 230,175 | ||||||
Cognex Corp. | 9,673 | 410,522 | ||||||
Coherent Corp.(a) | 7,286 | 237,815 | ||||||
Crane NXT Co. | 2,707 | 150,428 | ||||||
IPG Photonics Corp.(a) | 1,672 | 169,775 | ||||||
Jabil, Inc. | 7,348 | 932,388 | ||||||
Littelfuse, Inc. | 1,396 | 345,259 | ||||||
National Instruments Corp. | 7,383 | 440,174 | ||||||
Novanta, Inc.(a)(b) | 2,014 | 288,888 | ||||||
TD SYNNEX Corp. | 2,689 | 268,524 | ||||||
Vishay Intertechnology, Inc. | 7,120 | 176,006 | ||||||
Vontier Corp. | 8,699 | 268,973 | ||||||
|
| |||||||
4,558,047 |
Security | Shares | Value | ||||||
Energy Equipment & Services — 1.0% | ||||||||
ChampionX Corp. | 11,037 | $ | 393,138 | |||||
NOV, Inc. | 22,108 | 462,057 | ||||||
Valaris Ltd.(a) | 3,583 | 268,653 | ||||||
|
| |||||||
1,123,848 | ||||||||
Entertainment — 0.2% | ||||||||
TKO Group Holdings, Inc., Class A | 2,940 | 247,136 | ||||||
|
| |||||||
Financial Services — 1.6% | ||||||||
Essent Group Ltd. | 6,023 | 284,828 | ||||||
Euronet Worldwide, Inc.(a) | 2,659 | 211,071 | ||||||
MGIC Investment Corp. | 15,834 | 264,269 | ||||||
Voya Financial, Inc. | 5,939 | 394,647 | ||||||
Western Union Co. (The) | 17,182 | 226,459 | ||||||
WEX, Inc.(a) | 2,411 | 453,485 | ||||||
|
| |||||||
1,834,759 | ||||||||
Food Products — 1.4% | ||||||||
Darling Ingredients, Inc.(a) | 8,955 | 467,451 | ||||||
Flowers Foods, Inc. | 10,816 | 239,899 | ||||||
Ingredion, Inc. | 3,721 | 366,146 | ||||||
Lancaster Colony Corp. | 1,148 | 189,455 | ||||||
Pilgrim’s Pride Corp.(a) | 2,257 | 51,527 | ||||||
Post Holdings, Inc.(a)(b) | 2,859 | 245,131 | ||||||
|
| |||||||
1,559,609 | ||||||||
Gas Utilities — 1.0% | ||||||||
New Jersey Resources Corp. | 5,462 | 221,921 | ||||||
ONE Gas, Inc. | 3,120 | 213,034 | ||||||
Southwest Gas Holdings, Inc. | 3,385 | 204,488 | ||||||
Spire, Inc. | 2,951 | 166,967 | ||||||
UGI Corp. | 11,796 | 271,308 | ||||||
|
| |||||||
1,077,718 | ||||||||
Ground Transportation — 2.3% | ||||||||
Avis Budget Group, Inc.(a) | 1,113 | 199,995 | ||||||
Hertz Global Holdings, Inc.(a) | 7,507 | 91,961 | ||||||
Knight-Swift Transportation Holdings, Inc. | 9,056 | 454,158 | ||||||
Landstar System, Inc. | 2,019 | 357,242 | ||||||
Ryder System, Inc. | 2,565 | 274,327 | ||||||
Saia, Inc.(a) | 1,490 | 593,989 | ||||||
Werner Enterprises, Inc. | 3,555 | 138,467 | ||||||
XPO, Inc.(a) | 6,511 | 486,111 | ||||||
|
| |||||||
2,596,250 | ||||||||
Health Care Equipment & Supplies — 3.1% | ||||||||
Enovis Corp.(a) | 2,792 | 147,222 | ||||||
Envista Holdings Corp.(a) | 9,212 | 256,831 | ||||||
Globus Medical, Inc., Class A(a) | 6,583 | 326,846 | ||||||
Haemonetics Corp.(a) | 2,852 | 255,482 | ||||||
ICU Medical, Inc.(a) | 1,136 | 135,195 | ||||||
Inari Medical, Inc.(a) | 2,875 | 188,025 | ||||||
Integra LifeSciences Holdings Corp.(a) | 3,971 | 151,653 | ||||||
Lantheus Holdings, Inc.(a)(b) | 3,848 | 267,359 | ||||||
LivaNova PLC(a) | 3,022 | 159,803 | ||||||
Masimo Corp.(a) | 2,498 | 219,025 | ||||||
Neogen Corp.(a) | 11,091 | 205,627 | ||||||
Penumbra, Inc.(a) | 2,158 | 522,042 | ||||||
QuidelOrtho Corp.(a) | 2,783 | 203,270 | ||||||
Shockwave Medical, Inc.(a) | 2,064 | 410,942 | ||||||
|
| |||||||
3,449,322 | ||||||||
Health Care Providers & Services — 2.6% | ||||||||
Acadia Healthcare Co., Inc.(a) | 5,177 | 363,995 | ||||||
Amedisys, Inc.(a) | 1,831 | 171,015 | ||||||
Chemed Corp. | 847 | 440,186 |
16 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
Encompass Health Corp. | 5,629 | $ | 378,044 | |||||
HealthEquity, Inc.(a)(b) | 4,800 | 350,640 | ||||||
Option Care Health, Inc.(a) | 10,105 | 326,897 | ||||||
Patterson Cos., Inc. | 4,771 | 141,412 | ||||||
Progyny, Inc.(a) | 4,656 | 158,397 | ||||||
R1 RCM, Inc.(a) | 11,042 | 166,403 | ||||||
Tenet Healthcare Corp.(a) | 5,702 | 375,705 | ||||||
|
| |||||||
2,872,694 | ||||||||
Health Care REITs — 1.2% | ||||||||
Healthcare Realty Trust, Inc. | 21,398 | 326,747 | ||||||
Medical Properties Trust, Inc. | 33,722 | 183,785 | ||||||
Omega Healthcare Investors, Inc. | 13,748 | 455,884 | ||||||
Physicians Realty Trust | 13,374 | 163,029 | ||||||
Sabra Health Care REIT, Inc. | 12,966 | 180,746 | ||||||
|
| |||||||
1,310,191 | ||||||||
Health Care Technology — 0.1% | ||||||||
Doximity, Inc., Class A(a)(b) | 7,081 | 150,259 | ||||||
|
| |||||||
Hotel & Resort REITs — 0.1% | ||||||||
Park Hotels & Resorts, Inc. | 12,171 | 149,947 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.5% | ||||||||
Aramark | 14,656 | 508,563 | ||||||
Boyd Gaming Corp. | 3,976 | 241,860 | ||||||
Choice Hotels International, Inc. | 1,410 | 172,739 | ||||||
Churchill Downs, Inc. | 3,825 | 443,853 | ||||||
Hilton Grand Vacations, Inc.(a) | 4,074 | 165,812 | ||||||
Light & Wonder, Inc., Class A(a) | 5,117 | 364,996 | ||||||
Marriott Vacations Worldwide Corp. | 1,915 | 192,706 | ||||||
Penn Entertainment, Inc.(a) | 8,519 | 195,511 | ||||||
Planet Fitness, Inc., Class A(a) | 4,766 | 234,392 | ||||||
Texas Roadhouse, Inc. | 3,749 | 360,279 | ||||||
Travel + Leisure Co. | 4,146 | 152,283 | ||||||
Wendy’s Co. (The) | 9,546 | 194,834 | ||||||
Wingstop, Inc.(b) | 1,685 | 303,030 | ||||||
Wyndham Hotels & Resorts, Inc. | 4,733 | 329,133 | ||||||
|
| |||||||
3,859,991 | ||||||||
Household Durables — 1.9% | ||||||||
Helen of Troy Ltd.(a) | 1,350 | 157,356 | ||||||
KB Home | 4,382 | 202,799 | ||||||
Leggett & Platt, Inc. | 7,514 | 190,931 | ||||||
Taylor Morrison Home Corp., Class A(a) | 6,138 | 261,540 | ||||||
Tempur Sealy International, Inc. | 9,666 | 418,924 | ||||||
Toll Brothers, Inc. | 6,139 | 454,041 | ||||||
TopBuild Corp.(a) | 1,783 | 448,603 | ||||||
|
| |||||||
2,134,194 | ||||||||
Independent Power and Renewable Electricity Producers — 0.2% | ||||||||
Ormat Technologies, Inc. | 3,019 | 211,088 | ||||||
|
| |||||||
Industrial REITs — 1.5% | ||||||||
EastGroup Properties, Inc. | 2,549 | 424,485 | ||||||
First Industrial Realty Trust, Inc. | 7,428 | 353,498 | ||||||
Rexford Industrial Realty, Inc. | 11,591 | 572,016 | ||||||
STAG Industrial, Inc. | 10,092 | 348,275 | ||||||
|
| |||||||
1,698,274 | ||||||||
Insurance — 4.9% | �� | |||||||
American Financial Group, Inc. | 3,716 | 414,966 | ||||||
Brighthouse Financial, Inc.(a) | 3,690 | 180,589 | ||||||
CNO Financial Group, Inc. | 6,337 | 150,377 | ||||||
Erie Indemnity Co., Class A, NVS | 1,400 | 411,306 | ||||||
First American Financial Corp. | 5,783 | 326,682 | ||||||
Hanover Insurance Group, Inc. (The) | 2,012 | 223,292 |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
Kemper Corp. | 3,376 | $ | 141,893 | |||||
Kinsale Capital Group, Inc. | 1,235 | 511,450 | ||||||
Old Republic International Corp. | 14,862 | 400,382 | ||||||
Primerica, Inc. | 2,008 | 389,572 | ||||||
Reinsurance Group of America, Inc. | 3,717 | 539,671 | ||||||
RenaissanceRe Holdings Ltd. | 2,874 | 568,822 | ||||||
RLI Corp. | 2,255 | 306,432 | ||||||
Selective Insurance Group, Inc. | 3,402 | 350,984 | ||||||
Unum Group | 10,324 | 507,838 | ||||||
|
| |||||||
5,424,256 | ||||||||
Interactive Media & Services — 0.4% | ||||||||
Ziff Davis, Inc.(a) | 2,620 | 166,868 | ||||||
ZoomInfo Technologies, Inc., Class A(a) | 17,178 | 281,719 | ||||||
|
| |||||||
448,587 | ||||||||
IT Services — 0.2% | ||||||||
Kyndryl Holdings, Inc.(a) | 12,909 | 194,926 | ||||||
|
| |||||||
Leisure Products — 0.9% | ||||||||
Brunswick Corp. | 3,925 | 310,075 | ||||||
Polaris, Inc. | 2,999 | 312,316 | ||||||
Topgolf Callaway Brands Corp.(a) | 8,050 | 111,412 | ||||||
YETI Holdings, Inc.(a) | 4,856 | 234,156 | ||||||
|
| |||||||
967,959 | ||||||||
Life Sciences Tools & Services — 1.2% | ||||||||
Azenta, Inc.(a) | 3,373 | 169,291 | ||||||
Bruker Corp. | 5,527 | 344,332 | ||||||
Medpace Holdings, Inc.(a) | 1,307 | 316,464 | ||||||
Repligen Corp.(a) | 2,911 | 462,878 | ||||||
|
| |||||||
1,292,965 | ||||||||
Machinery — 4.7% | ||||||||
AGCO Corp. | 3,490 | 412,797 | ||||||
Chart Industries, Inc.(a) | 2,357 | 398,616 | ||||||
Crane Co.(b) | 2,734 | 242,889 | ||||||
Donaldson Co., Inc. | 6,807 | 405,970 | ||||||
Esab Corp. | 3,193 | 224,213 | ||||||
Flowserve Corp. | 7,385 | 293,701 | ||||||
Graco, Inc. | 9,488 | 691,485 | ||||||
Lincoln Electric Holdings, Inc. | 3,223 | 585,909 | ||||||
Middleby Corp. (The)(a) | 3,008 | 385,024 | ||||||
Oshkosh Corp. | 3,668 | 350,037 | ||||||
Terex Corp. | 3,792 | 218,495 | ||||||
Timken Co. (The) | 3,675 | 270,076 | ||||||
Toro Co. (The) | 5,834 | 484,805 | ||||||
Watts Water Technologies, Inc., Class A | 1,542 | 266,488 | ||||||
|
| |||||||
5,230,505 | ||||||||
Marine Transportation — 0.2% | ||||||||
Kirby Corp.(a) | 3,345 | 276,966 | ||||||
|
| |||||||
Media — 0.9% | ||||||||
Cable One, Inc. | 256 | 157,604 | ||||||
New York Times Co. (The), Class A | 9,185 | 378,422 | ||||||
Nexstar Media Group, Inc., Class A | 1,876 | 268,962 | ||||||
TEGNA, Inc. | 11,301 | 164,656 | ||||||
|
| |||||||
969,644 | ||||||||
Metals & Mining — 2.7% | ||||||||
Alcoa Corp. | 10,052 | 292,111 | ||||||
Cleveland-Cliffs, Inc.(a) | 28,560 | 446,393 | ||||||
Commercial Metals Co. | 6,561 | 324,179 | ||||||
MP Materials Corp., Class A(a) | 8,056 | 153,870 | ||||||
Reliance Steel & Aluminum Co. | 3,288 | 862,212 | ||||||
Royal Gold, Inc. | 3,689 | 392,251 |
SCHEDULES OF INVESTMENTS | 17 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
United States Steel Corp. | 12,518 | $ | 406,585 | |||||
Worthington Industries, Inc. | 1,709 | 105,650 | ||||||
|
| |||||||
2,983,251 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.8% | ||||||||
Annaly Capital Management, Inc. | 27,730 | 521,601 | ||||||
Starwood Property Trust, Inc. | 16,694 | 323,029 | ||||||
|
| |||||||
844,630 | ||||||||
Office REITs — 0.6% | ||||||||
COPT Defense Properties | 6,312 | 150,415 | ||||||
Cousins Properties, Inc. | 8,497 | 173,084 | ||||||
Kilroy Realty Corp. | 6,013 | 190,071 | ||||||
Vornado Realty Trust | 9,023 | 204,641 | ||||||
|
| |||||||
718,211 | ||||||||
Oil, Gas & Consumable Fuels — 1.4% | ||||||||
Antero Midstream Corp. | 19,159 | 229,525 | ||||||
DT Midstream, Inc. | 5,457 | 288,784 | ||||||
Equitrans Midstream Corp. | 24,373 | 228,375 | ||||||
HF Sinclair Corp. | 8,166 | 464,890 | ||||||
PBF Energy, Inc., Class A | 6,179 | 330,762 | ||||||
|
| |||||||
1,542,336 | ||||||||
Paper & Forest Products — 0.2% | ||||||||
Louisiana-Pacific Corp. | 3,619 | 200,022 | ||||||
|
| |||||||
Personal Care Products — 0.5% | ||||||||
BellRing Brands, Inc.(a) | 7,401 | 305,143 | ||||||
Coty, Inc., Class A(a)(b) | 20,154 | 221,090 | ||||||
|
| |||||||
526,233 | ||||||||
Pharmaceuticals — 0.6% | ||||||||
Jazz Pharmaceuticals PLC(a) | 3,545 | 458,865 | ||||||
Perrigo Co. PLC | 7,616 | 243,331 | ||||||
|
| |||||||
702,196 | ||||||||
Professional Services — 3.1% | ||||||||
ASGN, Inc.(a) | 2,724 | 222,496 | ||||||
Concentrix Corp. | 2,434 | 194,988 | ||||||
ExlService Holdings, Inc.(a) | 9,317 | 261,249 | ||||||
Exponent, Inc. | 2,860 | 244,816 | ||||||
FTI Consulting, Inc.(a) | 1,909 | 340,585 | ||||||
Genpact Ltd. | 9,370 | 339,194 | ||||||
Insperity, Inc. | 2,045 | 199,592 | ||||||
KBR, Inc. | 7,575 | 446,471 | ||||||
ManpowerGroup, Inc. | 2,795 | 204,929 | ||||||
Maximus, Inc. | 3,418 | 255,256 | ||||||
Paylocity Holding Corp.(a) | 2,418 | 439,351 | ||||||
Science Applications International Corp. | 3,012 | 317,886 | ||||||
|
| |||||||
3,466,813 | ||||||||
Real Estate Management & Development — 0.3% | ||||||||
Jones Lang LaSalle, Inc.(a) | 2,678 | 378,080 | ||||||
|
| |||||||
Residential REITs — 1.0% | ||||||||
Apartment Income REIT Corp. | 8,378 | 257,205 | ||||||
Equity LifeStyle Properties, Inc. | 10,458 | 666,279 | ||||||
Independence Realty Trust, Inc. | 12,660 | 178,126 | ||||||
|
| |||||||
1,101,610 | ||||||||
Retail REITs — 1.4% | ||||||||
Agree Realty Corp. | 5,421 | 299,456 | ||||||
Brixmor Property Group, Inc. | 16,883 | 350,829 | ||||||
Kite Realty Group Trust | 12,354 | 264,623 | ||||||
NNN REIT, Inc. | 10,245 | 362,058 | ||||||
Spirit Realty Capital, Inc. | 7,959 | 266,865 | ||||||
|
| |||||||
1,543,831 |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment — 2.7% | ||||||||
Allegro MicroSystems, Inc.(a) | 3,990 | $ | 127,441 | |||||
Amkor Technology, Inc. | 5,817 | 131,464 | ||||||
Cirrus Logic, Inc.(a) | 3,079 | 227,723 | ||||||
Lattice Semiconductor Corp.(a) | 7,739 | 665,012 | ||||||
MACOM Technology Solutions Holdings, Inc.(a) | 3,021 | 246,453 | ||||||
MKS Instruments, Inc. | 3,539 | 306,265 | ||||||
Power Integrations, Inc. | 3,228 | 246,329 | ||||||
Silicon Laboratories, Inc.(a) | 1,794 | 207,907 | ||||||
Synaptics, Inc.(a) | 2,232 | 199,630 | ||||||
Universal Display Corp. | 2,447 | 384,154 | ||||||
Wolfspeed, Inc.(a) | 7,007 | 266,967 | ||||||
|
| |||||||
3,009,345 | ||||||||
Software — 3.0% | ||||||||
ACI Worldwide, Inc.(a) | 6,139 | 138,496 | ||||||
Aspen Technology, Inc.(a) | 1,596 | 325,999 | ||||||
Blackbaud, Inc.(a) | 2,433 | 171,089 | ||||||
CommVault Systems, Inc.(a) | 2,456 | 166,050 | ||||||
Dropbox, Inc., Class A(a) | 14,479 | 394,263 | ||||||
Dynatrace, Inc.(a) | 13,338 | 623,285 | ||||||
Envestnet, Inc.(a) | 2,732 | 120,290 | ||||||
Manhattan Associates, Inc.(a) | 3,462 | 684,299 | ||||||
NCR Corp.(a) | 7,550 | 203,623 | ||||||
Qualys, Inc.(a) | 2,066 | 315,168 | ||||||
Teradata Corp.(a) | 5,628 | 253,373 | ||||||
|
| |||||||
3,395,935 | ||||||||
Specialized REITs — 1.5% | ||||||||
CubeSmart | 12,622 | 481,277 | ||||||
EPR Properties | 4,224 | 175,465 | ||||||
Lamar Advertising Co., Class A | 4,915 | 410,255 | ||||||
National Storage Affiliates Trust | 4,656 | 147,782 | ||||||
PotlatchDeltic Corp. | 4,506 | 204,527 | ||||||
Rayonier, Inc. | 7,687 | 218,772 | ||||||
|
| |||||||
1,638,078 | ||||||||
Specialty Retail — 2.8% | ||||||||
AutoNation, Inc.(a)(b) | 1,512 | 228,917 | ||||||
Five Below, Inc.(a)(b) | 3,125 | 502,812 | ||||||
GameStop Corp., Class A(a) | 15,040 | 247,558 | ||||||
Gap, Inc. (The) | 11,971 | 127,252 | ||||||
Lithia Motors, Inc., Class A | 1,548 | 457,171 | ||||||
Murphy U.S.A., Inc. | 1,096 | 374,536 | ||||||
Penske Automotive Group, Inc. | 1,096 | 183,098 | ||||||
RH(a) | 870 | 229,993 | ||||||
Valvoline, Inc. | 7,798 | 251,408 | ||||||
Williams-Sonoma, Inc. | 3,606 | 560,372 | ||||||
|
| |||||||
3,163,117 | ||||||||
Technology Hardware, Storage & Peripherals — 0.6% | ||||||||
Super Micro Computer, Inc.(a) | 2,564 | 703,100 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 2.2% | ||||||||
Capri Holdings Ltd.(a) | 6,520 | 343,017 | ||||||
Carter’s, Inc. | 2,091 | 144,593 | ||||||
Columbia Sportswear Co. | 1,961 | 145,310 | ||||||
Crocs, Inc.(a) | 3,471 | 306,247 | ||||||
Deckers Outdoor Corp.(a) | 1,467 | 754,170 | ||||||
PVH Corp. | 3,516 | 269,009 | ||||||
Skechers U.S.A., Inc., Class A(a) | 7,547 | 369,426 | ||||||
Under Armour, Inc., Class A(a) | 10,565 | 72,370 | ||||||
Under Armour, Inc., Class C, NVS(a) | 11,290 | 72,030 | ||||||
|
| |||||||
2,476,172 | ||||||||
Trading Companies & Distributors — 1.4% | ||||||||
GATX Corp. | 1,995 | 217,116 |
18 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Trading Companies & Distributors (continued) | ||||||||
MSC Industrial Direct Co., Inc., Class A | 2,666 | $ | 261,668 | |||||
Watsco, Inc. | 1,883 | 711,247 | ||||||
WESCO International, Inc. | 2,488 | 357,824 | ||||||
|
| |||||||
1,547,855 | ||||||||
Water Utilities — 0.4% | ||||||||
Essential Utilities, Inc. | 13,662 | 469,016 | ||||||
|
| |||||||
Total Long-Term Investments — 99.8% | 111,389,032 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 4.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 4,832,744 | 4,834,677 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) | 617,715 | 617,715 | ||||||
|
| |||||||
Total Short-Term Securities — 4.9% | 5,452,392 | |||||||
|
| |||||||
Total Investments — 104.7% | 116,841,424 | |||||||
Liabilities in Excess of Other Assets — (4.7)% | (5,243,028 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 111,598,396 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain | |||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 3,258,251 | $ | 1,575,701 | (a) | $ | — | $ | (118 | ) | $ | 843 | $ | 4,834,677 | 4,832,744 | $ | 11,267 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 158,472 | 459,243 | (a) | — | — | — | 617,715 | 617,715 | 6,834 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (118 | ) | $ | 843 | $ | 5,452,392 | $ | 18,101 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
SCHEDULES OF INVESTMENTS | 19 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Mid-Cap ETF |
Derivative Financial Instruments Categorized by Risk Exposure
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 7,384 | $ | — | $ | — | $ | — | $ | 7,384 | ||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (5,977 | ) | $ | — | $ | — | $ | — | $ | (5,977 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts | ||||
Average notional value of contracts — long | $ | 132,205 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 111,389,032 | $ | — | $ | — | $ | 111,389,032 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 5,452,392 | — | — | 5,452,392 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 116,841,424 | $ | — | $ | — | $ | 116,841,424 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
20 | 2 0 2 3 I SHARES S E M I - A N N U A L REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.7% | ||||||||
AAR Corp.(a) | 1,976 | $ | 117,632 | |||||
AeroVironment, Inc.(a) | 1,557 | 173,652 | ||||||
Kaman Corp. | 1,678 | 32,973 | ||||||
National Presto Industries, Inc. | 311 | 22,535 | ||||||
Triumph Group, Inc.(a)(b) | 4,561 | 34,937 | ||||||
|
| |||||||
381,729 | ||||||||
Air Freight & Logistics — 0.5% | ||||||||
Forward Air Corp. | 1,528 | 105,035 | ||||||
Hub Group, Inc., Class A(a) | 1,867 | 146,634 | ||||||
|
| |||||||
251,669 | ||||||||
Automobile Components — 1.6% | ||||||||
American Axle & Manufacturing Holdings, Inc.(a) | 6,960 | 50,530 | ||||||
Dana, Inc. | 7,603 | 111,536 | ||||||
Dorman Products, Inc.(a) | 1,678 | 127,125 | ||||||
Gentherm, Inc.(a) | 1,962 | 106,458 | ||||||
LCI Industries | 1,504 | 176,600 | ||||||
Patrick Industries, Inc. | 1,241 | 93,149 | ||||||
Standard Motor Products, Inc. | 1,111 | 37,352 | ||||||
XPEL, Inc.(a) | 1,258 | 97,004 | ||||||
|
| |||||||
799,754 | ||||||||
Automobiles — 0.2% | ||||||||
Winnebago Industries, Inc. | 1,796 | 106,772 | ||||||
|
| |||||||
Banks — 9.4% | ||||||||
Ameris Bancorp | 3,848 | 147,725 | ||||||
Atlantic Union Bankshares Corp. | 4,012 | 115,465 | ||||||
Axos Financial, Inc.(a) | 3,105 | 117,555 | ||||||
Banc of California, Inc. | 3,103 | 38,415 | ||||||
BancFirst Corp. | 888 | 77,016 | ||||||
Bancorp, Inc. (The)(a)(b) | 3,214 | 110,883 | ||||||
Bank of Hawaii Corp. | 2,226 | 110,610 | ||||||
BankUnited, Inc. | 4,228 | 95,976 | ||||||
Banner Corp. | 1,965 | 83,277 | ||||||
Berkshire Hills Bancorp, Inc. | 2,338 | 46,877 | ||||||
Brookline Bancorp, Inc. | 5,250 | 47,828 | ||||||
Capitol Federal Financial, Inc. | 7,530 | 35,918 | ||||||
Central Pacific Financial Corp. | 540 | 9,007 | ||||||
City Holding Co. | 842 | 76,075 | ||||||
Community Bank System, Inc. | 3,018 | 127,390 | ||||||
Customers Bancorp, Inc.(a) | 1,674 | 57,669 | ||||||
CVB Financial Corp. | 7,560 | 125,269 | ||||||
Dime Community Bancshares, Inc. | 2,077 | 41,457 | ||||||
Eagle Bancorp, Inc. | 1,771 | 37,988 | ||||||
FB Financial Corp. | 2,158 | 61,201 | ||||||
First BanCorp/Puerto Rico | 10,175 | 136,955 | ||||||
First Bancorp/Southern Pines NC | 2,313 | 65,088 | ||||||
First Commonwealth Financial Corp. | 5,941 | 72,540 | ||||||
First Financial Bancorp | 5,600 | 109,760 | ||||||
First Hawaiian, Inc. | 7,555 | 136,368 | ||||||
Fulton Financial Corp. | 8,216 | 99,496 | ||||||
Hanmi Financial Corp. | 1,634 | 26,520 | ||||||
Heritage Financial Corp. | 2,075 | 33,843 | ||||||
Hilltop Holdings, Inc. | 2,828 | 80,202 | ||||||
Hope Bancorp, Inc. | 7,107 | 62,897 | ||||||
Independent Bank Corp. | 2,468 | 121,154 | ||||||
Independent Bank Group, Inc. | 2,135 | 84,439 | ||||||
Lakeland Financial Corp. | 1,498 | 71,095 | ||||||
National Bank Holdings Corp., Class A | 2,048 | 60,948 | ||||||
NBT Bancorp, Inc. | 2,703 | 85,658 | ||||||
Northfield Bancorp, Inc. | 2,354 | 22,245 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Northwest Bancshares, Inc. | 7,160 | $ | 73,247 | |||||
OFG Bancorp | 2,786 | 83,190 | ||||||
Pacific Premier Bancorp, Inc. | 5,535 | 120,442 | ||||||
PacWest Bancorp | 7,048 | 55,750 | ||||||
Park National Corp. | 869 | 82,138 | ||||||
Pathward Financial, Inc. | 1,553 | 71,578 | ||||||
Preferred Bank | 561 | 34,922 | ||||||
Provident Financial Services, Inc. | 4,345 | 66,435 | ||||||
Renasant Corp. | 3,211 | 84,096 | ||||||
S&T Bancorp, Inc. | 2,264 | 61,309 | ||||||
Seacoast Banking Corp. of Florida | 4,900 | 107,604 | ||||||
ServisFirst Bancshares, Inc. | 2,900 | 151,293 | ||||||
Simmons First National Corp., Class A | 7,008 | 118,856 | ||||||
Southside Bancshares, Inc. | 1,717 | 49,278 | ||||||
Stellar Bancorp, Inc. | 2,887 | 61,551 | ||||||
Tompkins Financial Corp. | 743 | 36,400 | ||||||
Triumph Financial, Inc.(a) | 1,279 | 82,866 | ||||||
TrustCo Bank Corp. | 1,113 | 30,374 | ||||||
Trustmark Corp. | 3,466 | 75,316 | ||||||
United Community Banks, Inc. | 6,818 | 173,245 | ||||||
Veritex Holdings, Inc. | 3,092 | 55,501 | ||||||
Washington Federal, Inc. | 3,607 | 92,411 | ||||||
Westamerica BanCorp | 1,574 | 68,076 | ||||||
WSFS Financial Corp. | 3,473 | 126,764 | ||||||
|
| |||||||
4,795,451 | ||||||||
Beverages — 0.3% | ||||||||
MGP Ingredients, Inc. | 929 | 97,991 | ||||||
National Beverage Corp.(a) | 1,388 | 65,264 | ||||||
|
| |||||||
163,255 | ||||||||
Biotechnology — 1.7% | ||||||||
Arcus Biosciences, Inc.(a) | 3,192 | 57,296 | ||||||
Avid Bioservices, Inc.(a) | 3,729 | 35,202 | ||||||
Catalyst Pharmaceuticals, Inc.(a) | 5,957 | 69,637 | ||||||
Cytokinetics, Inc.(a)(b) | 5,683 | 167,421 | ||||||
Dynavax Technologies Corp.(a) | 7,656 | 113,079 | ||||||
Ironwood Pharmaceuticals, Inc., Class A(a) | 8,163 | 78,610 | ||||||
iTeos Therapeutics, Inc.(a) | 1,575 | 17,246 | ||||||
Myriad Genetics, Inc.(a)(b) | 4,869 | 78,099 | ||||||
REGENXBIO, Inc.(a) | 2,405 | 39,586 | ||||||
Vericel Corp.(a) | 2,832 | 94,929 | ||||||
Vir Biotechnology, Inc.(a) | 5,109 | 47,871 | ||||||
Xencor, Inc.(a) | 3,604 | 72,621 | ||||||
|
| |||||||
871,597 | ||||||||
Building Products — 1.9% | ||||||||
AAON, Inc. | 4,018 | 228,504 | ||||||
American Woodmark Corp.(a) | 973 | 73,569 | ||||||
Apogee Enterprises, Inc. | 1,312 | 61,769 | ||||||
AZZ, Inc. | 1,487 | 67,777 | ||||||
Gibraltar Industries, Inc.(a) | 1,801 | 121,585 | ||||||
Griffon Corp. | 2,434 | 96,557 | ||||||
Insteel Industries, Inc. | 1,155 | 37,491 | ||||||
PGT Innovations, Inc.(a) | 3,468 | 96,237 | ||||||
Quanex Building Products Corp. | 1,959 | 55,185 | ||||||
Resideo Technologies, Inc.(a) | 8,741 | 138,108 | ||||||
|
| |||||||
976,782 | ||||||||
Capital Markets — 1.3% | ||||||||
Artisan Partners Asset Management, Inc., Class A | 2,619 | 98,003 | ||||||
Avantax, Inc.(a) | 2,186 | 55,918 | ||||||
B Riley Financial, Inc. | 982 | 40,252 | ||||||
Brightsphere Investment Group, Inc. | 1,925 | 37,326 | ||||||
Donnelley Financial Solutions, Inc.(a) | 1,482 | 83,407 |
SCHEDULES OF INVESTMENTS | 21 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Capital Markets (continued) | ||||||||
Piper Sandler Cos | 893 | $ | 129,762 | |||||
StoneX Group, Inc.(a) | 1,063 | 103,026 | ||||||
Virtus Investment Partners, Inc. | 405 | 81,806 | ||||||
WisdomTree, Inc. | 6,721 | 47,047 | ||||||
|
| |||||||
676,547 | ||||||||
Chemicals — 2.8% | ||||||||
AdvanSix, Inc. | 1,618 | 50,287 | ||||||
American Vanguard Corp. | 1,620 | 17,707 | ||||||
Balchem Corp. | 1,909 | 236,792 | ||||||
Hawkins, Inc. | 1,142 | 67,207 | ||||||
HB Fuller Co. | 3,197 | 219,346 | ||||||
Ingevity Corp.(a) | 2,002 | 95,315 | ||||||
Innospec, Inc. | 1,473 | 150,541 | ||||||
Koppers Holdings, Inc. | 1,241 | 49,082 | ||||||
Livent Corp.(a) | 10,669 | 196,416 | ||||||
Minerals Technologies, Inc. | 1,935 | 105,961 | ||||||
Quaker Chemical Corp. | 823 | 131,680 | ||||||
Stepan Co. | 1,256 | 94,162 | ||||||
|
| |||||||
1,414,496 | ||||||||
Commercial Services & Supplies — 2.2% | ||||||||
ABM Industries, Inc. | 3,928 | 157,159 | ||||||
Brady Corp., Class A, NVS | 2,718 | 149,273 | ||||||
Deluxe Corp. | 2,594 | 49,001 | ||||||
Enviri Corp.(a) | 4,742 | 34,237 | ||||||
GEO Group, Inc. (The)(a) | 7,498 | 61,334 | ||||||
Healthcare Services Group, Inc. | 4,411 | 46,007 | ||||||
HNI Corp. | 2,767 | 95,821 | ||||||
Interface, Inc., Class A | 3,454 | 33,884 | ||||||
Liquidity Services, Inc.(a) | 1,332 | 23,470 | ||||||
Matthews International Corp., Class A | 1,811 | 70,466 | ||||||
MillerKnoll, Inc. | 4,496 | 109,927 | ||||||
OPENLANE, Inc.(a) | 6,474 | 96,592 | ||||||
Pitney Bowes, Inc. | 4,704 | 14,206 | ||||||
UniFirst Corp. | 898 | 146,383 | ||||||
Viad Corp.(a) | 1,241 | 32,514 | ||||||
|
| |||||||
1,120,274 | ||||||||
Communications Equipment — 1.3% | ||||||||
ADTRAN Holdings, Inc. | 4,209 | 34,640 | ||||||
Clearfield, Inc.(a) | 771 | 22,097 | ||||||
Digi International, Inc.(a) | 2,139 | 57,753 | ||||||
Extreme Networks, Inc.(a) | 7,585 | 183,633 | ||||||
Harmonic, Inc.(a) | 6,654 | 64,078 | ||||||
NetScout Systems, Inc.(a) | 4,290 | 120,206 | ||||||
Viasat, Inc.(a) | 4,429 | 81,759 | ||||||
Viavi Solutions, Inc.(a) | 13,169 | 120,365 | ||||||
|
| |||||||
684,531 | ||||||||
Construction & Engineering — 1.9% | ||||||||
Arcosa, Inc. | 2,887 | 207,575 | ||||||
Comfort Systems U.S.A., Inc. | 2,120 | 361,269 | ||||||
Dycom Industries, Inc.(a) | 1,742 | 155,038 | ||||||
Granite Construction, Inc. | 2,611 | 99,270 | ||||||
MYR Group, Inc.(a) | 993 | 133,817 | ||||||
|
| |||||||
956,969 | ||||||||
Consumer Finance — 0.9% | ||||||||
Bread Financial Holdings, Inc. | 1,688 | 57,729 | ||||||
Encore Capital Group, Inc.(a) | 1,396 | 66,673 | ||||||
Enova International, Inc.(a) | 1,830 | 93,092 | ||||||
Green Dot Corp., Class A(a) | 875 | 12,189 | ||||||
Navient Corp. | 5,205 | 89,630 | ||||||
PRA Group, Inc.(a) | 2,333 | 44,817 |
Security | Shares | Value | ||||||
Consumer Finance (continued) | ||||||||
PROG Holdings, Inc.(a) | 2,718 | $ | 90,265 | |||||
World Acceptance Corp.(a) | 203 | 25,793 | ||||||
|
| |||||||
480,188 | ||||||||
Consumer Staples Distribution & Retail — 0.7% | ||||||||
Andersons, Inc. (The) | 1,872 | 96,426 | ||||||
Chefs’ Warehouse, Inc. (The)(a) | 2,100 | 44,478 | ||||||
PriceSmart, Inc. | 1,532 | 114,027 | ||||||
SpartanNash Co. | 2,066 | 45,452 | ||||||
United Natural Foods, Inc.(a)(b) | 3,492 | 49,377 | ||||||
|
| |||||||
349,760 | ||||||||
Containers & Packaging — 0.4% | ||||||||
Myers Industries, Inc. | 2,189 | 39,249 | ||||||
O-I Glass, Inc.(a) | 9,209 | 154,066 | ||||||
|
| |||||||
193,315 | ||||||||
Diversified Consumer Services — 1.0% | ||||||||
Adtalem Global Education, Inc.(a) | 2,469 | 105,797 | ||||||
Frontdoor, Inc.(a) | 4,772 | 145,975 | ||||||
Perdoceo Education Corp. | 3,899 | 66,673 | ||||||
Strategic Education, Inc. | 1,308 | 98,427 | ||||||
Stride, Inc.(a) | 2,394 | 107,802 | ||||||
|
| |||||||
524,674 | ||||||||
Diversified REITs — 0.9% | ||||||||
Alexander & Baldwin, Inc. | 4,318 | 72,240 | ||||||
American Assets Trust, Inc. | 2,888 | 56,171 | ||||||
Armada Hoffler Properties, Inc. | 4,040 | 41,370 | ||||||
Essential Properties Realty Trust, Inc. | 9,260 | 200,294 | ||||||
Global Net Lease, Inc. | 11,503 | 110,544 | ||||||
|
| |||||||
480,619 | ||||||||
Diversified Telecommunication Services — 0.5% | ||||||||
ATN International, Inc. | 630 | 19,883 | ||||||
Cogent Communications Holdings, Inc. | 2,583 | 159,888 | ||||||
Consolidated Communications Holdings, Inc.(a) | 4,437 | 15,174 | ||||||
Lumen Technologies, Inc.(a) | 59,959 | 85,142 | ||||||
|
| |||||||
280,087 | ||||||||
Electrical Equipment — 0.5% | ||||||||
Encore Wire Corp. | 998 | 182,095 | ||||||
Powell Industries, Inc. | 543 | 45,015 | ||||||
SunPower Corp.(a) | 5,104 | 31,492 | ||||||
|
| |||||||
258,602 | ||||||||
Electronic Equipment, Instruments & Components — 4.7% | ||||||||
Advanced Energy Industries, Inc. | 2,229 | 229,855 | ||||||
Arlo Technologies, Inc.(a) | 5,592 | 57,598 | ||||||
Badger Meter, Inc. | 1,736 | 249,758 | ||||||
Benchmark Electronics, Inc. | 2,120 | 51,431 | ||||||
CTS Corp. | 1,864 | 77,803 | ||||||
ePlus, Inc.(a) | 1,602 | 101,759 | ||||||
Fabrinet(a) | 2,152 | 358,566 | ||||||
Insight Enterprises, Inc.(a)(b) | 1,790 | 260,445 | ||||||
Itron, Inc.(a) | 2,691 | 163,021 | ||||||
Knowles Corp.(a) | 5,419 | 80,256 | ||||||
Methode Electronics, Inc. | 2,141 | 48,922 | ||||||
OSI Systems, Inc.(a) | 914 | 107,889 | ||||||
PC Connection, Inc. | 672 | 35,871 | ||||||
Plexus Corp.(a) | 1,632 | 151,743 | ||||||
Rogers Corp.(a) | 992 | 130,418 | ||||||
Sanmina Corp.(a) | 3,397 | 184,389 | ||||||
ScanSource, Inc.(a) | 1,481 | 44,889 | ||||||
TTM Technologies, Inc.(a) | 6,176 | 79,547 | ||||||
|
| |||||||
2,414,160 |
22 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Energy Equipment & Services — 2.2% | ||||||||
Archrock, Inc. | 8,185 | $ | 103,131 | |||||
Bristow Group, Inc.(a) | 1,424 | 40,114 | ||||||
Core Laboratories, Inc. | 2,775 | 66,628 | ||||||
Dril-Quip, Inc.(a)(b) | 2,032 | 57,241 | ||||||
Helix Energy Solutions Group, Inc.(a) | 8,427 | 94,130 | ||||||
Helmerich & Payne, Inc. | 5,886 | 248,154 | ||||||
Nabors Industries Ltd.(a) | 533 | 65,634 | ||||||
Oil States International, Inc.(a) | 3,800 | 31,806 | ||||||
Patterson-UTI Energy, Inc. | 18,974 | 262,600 | ||||||
ProPetro Holding Corp.(a) | 5,163 | 54,883 | ||||||
RPC, Inc. | 5,061 | 45,245 | ||||||
U.S. Silica Holdings, Inc.(a) | 4,584 | 64,359 | ||||||
|
| |||||||
1,133,925 | ||||||||
Entertainment — 0.6% | ||||||||
Cinemark Holdings, Inc.(a)(b) | 6,408 | 117,587 | ||||||
Madison Square Garden Sports Corp., Class A | 989 | 174,361 | ||||||
Marcus Corp. (The) | 1,463 | 22,676 | ||||||
|
| |||||||
314,624 | ||||||||
Financial Services — 1.6% | ||||||||
EVERTEC, Inc. | 3,840 | 142,771 | ||||||
Mr. Cooper Group, Inc.(a)(b) | 3,968 | 212,526 | ||||||
NMI Holdings, Inc., Class A(a) | 4,890 | 132,470 | ||||||
Payoneer Global, Inc.(a) | 12,275 | 75,123 | ||||||
Radian Group, Inc. | 3,344 | 83,968 | ||||||
Walker & Dunlop, Inc. | 1,981 | 147,070 | ||||||
|
| |||||||
793,928 | ||||||||
Food Products — 2.2% | ||||||||
B&G Foods, Inc. | 4,299 | 42,517 | ||||||
Calavo Growers, Inc. | 1,057 | 26,668 | ||||||
Cal-Maine Foods, Inc. | 2,406 | 116,498 | ||||||
Fresh Del Monte Produce, Inc. | 2,003 | 51,758 | ||||||
Hain Celestial Group, Inc. (The)(a) | 5,318 | 55,148 | ||||||
Hostess Brands, Inc., Class A(a) | 7,865 | 261,983 | ||||||
J & J Snack Foods Corp. | 917 | 150,067 | ||||||
John B Sanfilippo & Son, Inc. | 532 | 52,562 | ||||||
Simply Good Foods Co. (The)(a) | 5,363 | 185,131 | ||||||
Tootsie Roll Industries, Inc. | 1,035 | 30,905 | ||||||
TreeHouse Foods, Inc.(a)(b) | 3,049 | 132,875 | ||||||
|
| |||||||
1,106,112 | ||||||||
Gas Utilities — 0.4% | ||||||||
Chesapeake Utilities Corp. | 1,059 | 103,517 | ||||||
Northwest Natural Holding Co. | 2,145 | 81,853 | ||||||
|
| |||||||
185,370 | ||||||||
Ground Transportation — 0.5% | ||||||||
ArcBest Corp. | 1,428 | 145,156 | ||||||
Heartland Express, Inc. | 2,725 | 40,030 | ||||||
Marten Transport Ltd. | 3,432 | 67,645 | ||||||
|
| |||||||
252,831 | ||||||||
Health Care Equipment & Supplies — 2.3% | ||||||||
Artivion, Inc.(a) | 2,318 | 35,141 | ||||||
Avanos Medical, Inc.(a) | 2,787 | 56,353 | ||||||
CONMED Corp. | 1,820 | 183,547 | ||||||
Glaukos Corp.(a) | 2,887 | 217,247 | ||||||
Integer Holdings Corp.(a) | 1,972 | 154,664 | ||||||
LeMaitre Vascular, Inc. | 1,179 | 64,232 | ||||||
Merit Medical Systems, Inc.(a) | 3,412 | 235,496 | ||||||
OraSure Technologies, Inc.(a) | 4,365 | 25,885 | ||||||
Orthofix Medical, Inc.(a) | 2,171 | 27,919 | ||||||
Tandem Diabetes Care, Inc.(a) | 3,869 | 80,359 |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) | ||||||||
UFP Technologies, Inc.(a) | 417 | $ | 67,325 | |||||
Varex Imaging Corp.(a) | 2,403 | 45,152 | ||||||
|
| |||||||
1,193,320 | ||||||||
Health Care Providers & Services — 3.2% | ||||||||
AdaptHealth Corp.(a) | 4,856 | 44,190 | ||||||
Addus HomeCare Corp.(a) | 965 | 82,208 | ||||||
Agiliti, Inc.(a) | 2,074 | 13,460 | ||||||
AMN Healthcare Services, Inc.(a) | 2,249 | 191,570 | ||||||
Apollo Medical Holdings, Inc.(a) | 2,507 | 77,341 | ||||||
Community Health Systems, Inc.(a) | 7,564 | 21,936 | ||||||
CorVel Corp.(a)(b) | 539 | 105,994 | ||||||
Cross Country Healthcare, Inc.(a) | 2,001 | 49,605 | ||||||
Ensign Group, Inc. (The) | 3,327 | 309,178 | ||||||
Fulgent Genetics, Inc.(a) | 1,210 | 32,355 | ||||||
ModivCare, Inc.(a) | 734 | 23,128 | ||||||
NeoGenomics, Inc.(a) | 7,584 | 93,283 | ||||||
Owens & Minor, Inc.(a) | 4,550 | 73,528 | ||||||
Pediatrix Medical Group, Inc.(a) | 4,920 | 62,533 | ||||||
Privia Health Group, Inc.(a) | 6,044 | 139,012 | ||||||
RadNet, Inc.(a) | 3,571 | 100,667 | ||||||
Select Medical Holdings Corp. | 6,172 | 155,967 | ||||||
U.S. Physical Therapy, Inc. | 891 | 81,731 | ||||||
|
| |||||||
1,657,686 | ||||||||
Health Care REITs — 0.5% | ||||||||
CareTrust REIT, Inc. | 5,889 | 120,724 | ||||||
Community Healthcare Trust, Inc. | 1,468 | 43,600 | ||||||
LTC Properties, Inc. | 2,463 | 79,136 | ||||||
Universal Health Realty Income Trust | 756 | 30,565 | ||||||
|
| |||||||
274,025 | ||||||||
Health Care Technology — 0.8% | ||||||||
Certara, Inc.(a) | 6,365 | 92,547 | ||||||
HealthStream, Inc. | 1,442 | 31,118 | ||||||
NextGen Healthcare, Inc.(a) | 3,227 | 76,577 | ||||||
Schrodinger, Inc.(a) | 3,245 | 91,736 | ||||||
Simulations Plus, Inc. | 948 | 39,532 | ||||||
Veradigm, Inc.(a) | 6,495 | 85,344 | ||||||
|
| |||||||
416,854 | ||||||||
Hotel & Resort REITs — 1.0% | ||||||||
Chatham Lodging Trust | 2,905 | 27,801 | ||||||
DiamondRock Hospitality Co. | 12,398 | 99,556 | ||||||
Pebblebrook Hotel Trust | 7,165 | 97,372 | ||||||
Service Properties Trust | 9,838 | 75,654 | ||||||
Summit Hotel Properties, Inc. | 6,396 | 37,097 | ||||||
Sunstone Hotel Investors, Inc. | 12,261 | 114,640 | ||||||
Xenia Hotels & Resorts, Inc. | 6,378 | 75,133 | ||||||
|
| |||||||
527,253 | ||||||||
Hotels, Restaurants & Leisure — 2.1% | ||||||||
BJ’s Restaurants, Inc.(a) | 1,401 | 32,867 | ||||||
Bloomin’ Brands, Inc. | 5,156 | 126,786 | ||||||
Brinker International, Inc.(a) | 2,634 | 83,208 | ||||||
Cheesecake Factory, Inc. (The) | 2,804 | 84,961 | ||||||
Chuy’s Holdings, Inc.(a) | 1,073 | 38,177 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,318 | 88,570 | ||||||
Dave & Buster’s Entertainment, Inc.(a) | 2,042 | 75,697 | ||||||
Dine Brands Global, Inc. | 926 | 45,791 | ||||||
Golden Entertainment, Inc. | 1,288 | 44,024 | ||||||
Jack in the Box, Inc. | 1,195 | 82,527 | ||||||
Monarch Casino & Resort, Inc. | 797 | 49,494 | ||||||
Sabre Corp.(a)(b) | 19,754 | 88,695 |
SCHEDULES OF INVESTMENTS | 23 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
Shake Shack, Inc., Class A(a) | 2,220 | $ | 128,915 | |||||
Six Flags Entertainment Corp.(a) | 4,237 | 99,612 | ||||||
|
| |||||||
1,069,324 | ||||||||
Household Durables — 3.1% | ||||||||
Cavco Industries, Inc.(a) | 479 | 127,251 | ||||||
Century Communities, Inc. | 1,694 | 113,125 | ||||||
Ethan Allen Interiors, Inc. | 1,357 | 40,574 | ||||||
Green Brick Partners, Inc.(a)(b) | 1,511 | 62,722 | ||||||
Installed Building Products, Inc. | 1,396 | 174,347 | ||||||
iRobot Corp.(a) | 1,639 | 62,118 | ||||||
La-Z-Boy, Inc. | 2,573 | 79,454 | ||||||
LGI Homes, Inc.(a) | 1,213 | 120,681 | ||||||
M/I Homes, Inc.(a) | 1,646 | 138,330 | ||||||
MDC Holdings, Inc. | 3,531 | 145,583 | ||||||
Meritage Homes Corp. | 2,181 | 266,933 | ||||||
Sonos, Inc.(a) | 7,586 | 97,935 | ||||||
Tri Pointe Homes, Inc.(a) | 5,879 | 160,791 | ||||||
|
| |||||||
1,589,844 | ||||||||
Household Products — 0.6% | ||||||||
Central Garden & Pet Co.(a) | 566 | 24,983 | ||||||
Central Garden & Pet Co., Class A, NVS(a) | 2,438 | 97,739 | ||||||
WD-40 Co. | 806 | 163,812 | ||||||
|
| |||||||
286,534 | ||||||||
Industrial REITs — 0.6% | ||||||||
Innovative Industrial Properties, Inc. | 1,660 | 125,596 | ||||||
LXP Industrial Trust | 17,380 | 154,682 | ||||||
|
| |||||||
280,278 | ||||||||
Insurance — 2.4% | ||||||||
Ambac Financial Group, Inc.(a) | 2,694 | 32,490 | ||||||
American Equity Investment Life Holding Co.(a) | 3,672 | 196,966 | ||||||
AMERISAFE, Inc. | 1,141 | 57,130 | ||||||
Assured Guaranty Ltd. | 3,303 | 199,897 | ||||||
Employers Holdings, Inc. | 1,465 | 58,527 | ||||||
Genworth Financial, Inc., Class A(a) | 25,573 | 149,858 | ||||||
HCI Group, Inc. | 358 | 19,436 | ||||||
Horace Mann Educators Corp. | 2,029 | 59,612 | ||||||
James River Group Holdings Ltd. | 2,007 | 30,807 | ||||||
Mercury General Corp. | 1,580 | 44,287 | ||||||
Palomar Holdings, Inc.(a) | 1,471 | 74,653 | ||||||
ProAssurance Corp. | 2,810 | 53,081 | ||||||
Safety Insurance Group, Inc. | 874 | 59,598 | ||||||
SiriusPoint Ltd.(a) | 5,261 | 53,504 | ||||||
Stewart Information Services Corp. | 1,567 | 68,635 | ||||||
Trupanion, Inc.(a) | 2,115 | 59,643 | ||||||
United Fire Group, Inc. | 1,261 | 24,905 | ||||||
|
| |||||||
1,243,029 | ||||||||
Interactive Media & Services — 0.8% | ||||||||
Cargurus, Inc., Class A(a) | 5,159 | 90,386 | ||||||
Cars.com, Inc.(a) | 3,676 | 61,977 | ||||||
QuinStreet, Inc.(a) | 3,057 | 27,421 | ||||||
Shutterstock, Inc. | 1,437 | 54,678 | ||||||
Yelp, Inc.(a) | 4,081 | 169,729 | ||||||
|
| |||||||
404,191 | ||||||||
IT Services — 0.2% | ||||||||
Perficient, Inc.(a) | 2,069 | 119,712 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.2% | ||||||||
BioLife Solutions, Inc.(a) | 2,043 | 28,214 | ||||||
Cytek Biosciences, Inc.(a) | 5,918 | 32,668 | ||||||
Mesa Laboratories, Inc.(b) | 304 | 31,941 |
Security | Shares | Value | ||||||
Life Sciences Tools & Services (continued) | ||||||||
OmniAb, Inc., 12.50 Earnout Shares(a)(c) | 262 | $ | — | |||||
OmniAb, Inc., 15.00 Earnout Shares(a)(c) | 262 | — | ||||||
|
| |||||||
92,823 | ||||||||
Machinery — 5.2% | ||||||||
3D Systems Corp.(a) | 7,936 | 38,966 | ||||||
Alamo Group, Inc. | 614 | 106,136 | ||||||
Albany International Corp., Class A | 1,846 | 159,273 | ||||||
Astec Industries, Inc. | 1,352 | 63,693 | ||||||
Barnes Group, Inc. | 2,995 | 101,740 | ||||||
CIRCOR International, Inc.(a) | 1,213 | 67,625 | ||||||
Enerpac Tool Group Corp., Class A | 3,335 | 88,144 | ||||||
EnPro Industries, Inc. | 1,238 | 150,033 | ||||||
ESCO Technologies, Inc. | 1,531 | 159,898 | ||||||
Federal Signal Corp. | 3,619 | 216,163 | ||||||
Franklin Electric Co., Inc. | 2,355 | 210,137 | ||||||
Greenbrier Cos., Inc. (The) | 1,836 | 73,440 | ||||||
Hillenbrand, Inc. | 4,139 | 175,121 | ||||||
John Bean Technologies Corp. | 1,885 | 198,189 | ||||||
Kennametal, Inc. | 4,738 | 117,881 | ||||||
Lindsay Corp. | 654 | 76,963 | ||||||
Proto Labs, Inc.(a) | 1,551 | 40,946 | ||||||
SPX Technologies, Inc.(a) | 2,699 | 219,698 | ||||||
Standex International Corp. | 701 | 102,129 | ||||||
Tennant Co. | 1,104 | 81,862 | ||||||
Titan International, Inc.(a) | 3,059 | 41,082 | ||||||
Trinity Industries, Inc. | 4,845 | 117,976 | ||||||
Wabash National Corp. | 2,796 | 59,051 | ||||||
|
| |||||||
2,666,146 | ||||||||
Marine Transportation — 0.4% | ||||||||
Matson, Inc. | 2,095 | 185,868 | ||||||
|
| |||||||
Media — 0.7% | ||||||||
AMC Networks, Inc., Class A(a) | 1,808 | 21,298 | ||||||
DISH Network Corp., Class A(a) | 14,761 | 86,500 | ||||||
EW Scripps Co. (The), Class A, NVS(a) | 3,494 | 19,147 | ||||||
John Wiley & Sons, Inc., Class A | 2,530 | 94,040 | ||||||
Scholastic Corp., NVS | 1,657 | 63,198 | ||||||
TechTarget, Inc.(a) | 1,506 | 45,722 | ||||||
Thryv Holdings, Inc.(a) | 1,810 | 33,974 | ||||||
|
| |||||||
363,879 | ||||||||
Metals & Mining — 1.9% | ||||||||
ATI, Inc.(a) | 7,612 | 313,234 | ||||||
Carpenter Technology Corp. | 2,882 | 193,699 | ||||||
Century Aluminum Co.(a)(b) | 3,076 | 22,116 | ||||||
Compass Minerals International, Inc. | 2,006 | 56,068 | ||||||
Haynes International, Inc. | 757 | 35,216 | ||||||
Kaiser Aluminum Corp. | 952 | 71,647 | ||||||
Materion Corp. | 1,227 | 125,044 | ||||||
Olympic Steel, Inc. | 583 | 32,770 | ||||||
SunCoke Energy, Inc. | 4,978 | 50,527 | ||||||
TimkenSteel Corp.(a) | 2,298 | 49,913 | ||||||
|
| |||||||
950,234 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) — 1.3% | ||||||||
Apollo Commercial Real Estate Finance, Inc. | 7,735 | 78,356 | ||||||
Arbor Realty Trust, Inc. | 1,075 | 16,318 | ||||||
ARMOUR Residential REIT, Inc. | 13,584 | 57,732 | ||||||
Ellington Financial, Inc. | 4,044 | 50,429 | ||||||
Franklin BSP Realty Trust, Inc. | 4,889 | 64,730 | ||||||
Invesco Mortgage Capital, Inc. | 2,651 | 26,537 | ||||||
KKR Real Estate Finance Trust, Inc. | 3,451 | 40,963 | ||||||
New York Mortgage Trust, Inc. | 5,425 | 46,058 |
24 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Mortgage Real Estate Investment Trusts (REITs) (continued) | ||||||||
PennyMac Mortgage Investment Trust | 5,160 | $ | 63,984 | |||||
Ready Capital Corp. | 9,345 | 94,478 | ||||||
Redwood Trust, Inc. | 6,791 | 48,420 | ||||||
Two Harbors Investment Corp. | 5,717 | 75,693 | ||||||
|
| |||||||
663,698 | ||||||||
Multi-Utilities — 0.4% | ||||||||
Avista Corp. | 4,429 | 143,367 | ||||||
Unitil Corp. | 957 | 40,873 | ||||||
|
| |||||||
184,240 | ||||||||
Office REITs — 0.7% | ||||||||
Brandywine Realty Trust | 10,232 | 46,453 | ||||||
Easterly Government Properties, Inc. | 5,556 | 63,505 | ||||||
Hudson Pacific Properties, Inc. | 7,463 | 49,629 | ||||||
JBG SMITH Properties | 5,574 | 80,600 | ||||||
SL Green Realty Corp. | 3,523 | 131,408 | ||||||
|
| |||||||
371,595 | ||||||||
Oil, Gas & Consumable Fuels — 0.8% | ||||||||
CVR Energy, Inc. | 1,733 | 58,974 | ||||||
Dorian LPG Ltd. | 2,017 | 57,949 | ||||||
Green Plains, Inc.(a)(b) | 2,434 | 73,263 | ||||||
Par Pacific Holdings, Inc.(a) | 3,340 | 120,040 | ||||||
REX American Resources Corp.(a) | 900 | 36,648 | ||||||
World Kinect Corp. | 3,580 | 80,299 | ||||||
|
| |||||||
427,173 | ||||||||
Paper & Forest Products — 0.3% | ||||||||
Clearwater Paper Corp.(a) | 994 | 36,032 | ||||||
Mercer International, Inc. | 2,610 | 22,394 | ||||||
Sylvamo Corp. | 2,116 | 92,977 | ||||||
|
| |||||||
151,403 | ||||||||
Passenger Airlines — 0.4% | ||||||||
Allegiant Travel Co. | 899 | 69,097 | ||||||
Hawaiian Holdings, Inc.(a)(b) | 3,070 | 19,433 | ||||||
SkyWest, Inc.(a) | 2,501 | 104,892 | ||||||
Sun Country Airlines Holdings, Inc.(a) | 2,397 | 35,572 | ||||||
|
| |||||||
228,994 | ||||||||
Personal Care Products — 1.5% | ||||||||
Edgewell Personal Care Co. | 3,008 | 111,176 | ||||||
elf Beauty, Inc.(a) | 3,224 | 354,092 | ||||||
Inter Parfums, Inc. | 1,063 | 142,803 | ||||||
Medifast, Inc. | 648 | 48,503 | ||||||
Nu Skin Enterprises, Inc., Class A | 2,971 | 63,015 | ||||||
USANA Health Sciences, Inc.(a) | 665 | 38,975 | ||||||
|
| |||||||
758,564 | ||||||||
Pharmaceuticals — 1.7% | ||||||||
Amphastar Pharmaceuticals, Inc.(a) | 2,255 | 103,707 | ||||||
ANI Pharmaceuticals, Inc.(a) | 953 | 55,331 | ||||||
Collegium Pharmaceutical, Inc.(a) | 2,065 | 46,153 | ||||||
Corcept Therapeutics, Inc.(a) | 5,358 | 145,979 | ||||||
Harmony Biosciences Holdings, Inc.(a) | 1,997 | 65,442 | ||||||
Innoviva, Inc.(a) | 3,406 | 44,244 | ||||||
Ligand Pharmaceuticals, Inc.(a) | 970 | 58,122 | ||||||
Pacira BioSciences, Inc.(a) | 2,745 | 84,217 | ||||||
Phibro Animal Health Corp., Class A | 1,204 | 15,375 | ||||||
Prestige Consumer Healthcare, Inc.(a) | 2,933 | 167,738 | ||||||
Supernus Pharmaceuticals, Inc.(a) | 3,245 | 89,465 | ||||||
|
| |||||||
875,773 | ||||||||
Professional Services — 1.3% | ||||||||
CSG Systems International, Inc. | 1,808 | 92,425 | ||||||
Forrester Research, Inc.(a) | 682 | 19,710 |
Security | Shares | Value | ||||||
Professional Services (continued) | ||||||||
Heidrick & Struggles International, Inc. | 1,189 | $ | 29,749 | |||||
Kelly Services, Inc., Class A, NVS | 1,907 | 34,688 | ||||||
Korn Ferry | 3,172 | 150,480 | ||||||
NV5 Global, Inc.(a) | 755 | 72,653 | ||||||
Resources Connection, Inc. | 1,902 | 28,359 | ||||||
TrueBlue, Inc.(a) | 1,843 | 27,037 | ||||||
TTEC Holdings, Inc. | 1,127 | 29,550 | ||||||
Verra Mobility Corp., Class A(a)(b) | 10,072 | 188,346 | ||||||
|
| |||||||
672,997 | ||||||||
Real Estate Management & Development — 0.8% | ||||||||
Anywhere Real Estate, Inc.(a) | 6,573 | 42,265 | ||||||
Cushman & Wakefield PLC(a) | 7,384 | 56,266 | ||||||
eXp World Holdings, Inc. | 4,566 | 74,152 | ||||||
Kennedy-Wilson Holdings, Inc. | 7,045 | 103,843 | ||||||
Marcus & Millichap, Inc. | 1,418 | 41,604 | ||||||
St. Joe Co. (The) | 2,118 | 115,071 | ||||||
|
| |||||||
433,201 | ||||||||
Residential REITs — 0.5% | ||||||||
Centerspace | 889 | 53,571 | ||||||
Elme Communities | 5,221 | 71,214 | ||||||
NexPoint Residential Trust, Inc. | 1,360 | 43,765 | ||||||
Veris Residential, Inc. | 4,763 | 78,590 | ||||||
|
| |||||||
247,140 | ||||||||
Retail REITs — 1.7% | ||||||||
Acadia Realty Trust | 5,637 | 80,891 | ||||||
Getty Realty Corp. | 2,732 | 75,758 | ||||||
Macerich Co. (The) | 12,790 | 139,539 | ||||||
Retail Opportunity Investments Corp. | 7,493 | 92,763 | ||||||
RPT Realty | 4,746 | 50,118 | ||||||
Saul Centers, Inc. | 769 | 27,123 | ||||||
SITE Centers Corp. | 10,697 | 131,894 | ||||||
Tanger Factory Outlet Centers, Inc. | 6,227 | 140,730 | ||||||
Urban Edge Properties | 6,962 | 106,240 | ||||||
Whitestone REIT | 2,797 | 26,935 | ||||||
|
| |||||||
871,991 | ||||||||
Semiconductors & Semiconductor Equipment — 4.9% | ||||||||
Alpha & Omega Semiconductor Ltd.(a) | 1,332 | 39,747 | ||||||
Axcelis Technologies, Inc.(a) | 1,943 | 316,806 | ||||||
CEVA, Inc.(a) | 1,405 | 27,243 | ||||||
Cohu, Inc.(a) | 2,815 | 96,949 | ||||||
Diodes, Inc.(a) | 2,715 | 214,051 | ||||||
FormFactor, Inc.(a) | 4,597 | 160,619 | ||||||
Ichor Holdings Ltd.(a) | 1,739 | 53,839 | ||||||
Kulicke & Soffa Industries, Inc. | 3,343 | 162,570 | ||||||
MaxLinear, Inc.(a) | 4,360 | 97,010 | ||||||
Onto Innovation, Inc.(a) | 2,905 | 370,446 | ||||||
PDF Solutions, Inc.(a) | 1,814 | 58,774 | ||||||
Photronics, Inc.(a) | 3,717 | 75,120 | ||||||
Rambus, Inc.(a)(b) | 6,470 | 360,961 | ||||||
Semtech Corp.(a)(b) | 3,783 | 97,412 | ||||||
SiTime Corp.(a) | 1,012 | 115,621 | ||||||
SMART Global Holdings, Inc.(a) | 2,977 | 72,490 | ||||||
Ultra Clean Holdings, Inc.(a) | 2,658 | 78,863 | ||||||
Veeco Instruments, Inc.(a) | 3,349 | 94,140 | ||||||
|
| |||||||
2,492,661 | ||||||||
Software — 3.1% | ||||||||
A10 Networks, Inc. | 4,142 | 62,254 | ||||||
Adeia, Inc. | 6,346 | 67,775 | ||||||
Agilysys, Inc.(a) | 1,206 | 79,789 | ||||||
Alarm.com Holdings, Inc.(a)(b) | 2,963 | 181,158 |
SCHEDULES OF INVESTMENTS | 25 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Software (continued) | ||||||||
Cerence, Inc.(a) | 2,398 | $ | 48,847 | |||||
Consensus Cloud Solutions, Inc.(a) | 1,078 | 27,144 | ||||||
Digital Turbine, Inc.(a) | 5,379 | 32,543 | ||||||
DoubleVerify Holdings, Inc.(a) | 7,433 | 207,752 | ||||||
Ebix, Inc. | 1,450 | 14,326 | ||||||
InterDigital, Inc. | 1,569 | 125,897 | ||||||
LiveRamp Holdings, Inc.(a) | 3,917 | 112,966 | ||||||
N-able, Inc.(a) | 4,124 | 53,200 | ||||||
OneSpan, Inc.(a) | 2,139 | 22,994 | ||||||
Progress Software Corp. | 2,577 | 135,499 | ||||||
SPS Commerce, Inc.(a) | 2,170 | 370,224 | ||||||
Xperi, Inc.(a) | 2,574 | 25,380 | ||||||
|
| |||||||
1,567,748 | ||||||||
Specialized REITs — 0.6% | ||||||||
Four Corners Property Trust, Inc. | 5,361 | 118,961 | ||||||
Outfront Media, Inc. | 8,637 | 87,234 | ||||||
Safehold, Inc.(a) | 2,664 | 47,419 | ||||||
Uniti Group, Inc. | 14,202 | 67,033 | ||||||
|
| |||||||
320,647 | ||||||||
Specialty Retail — 4.4% | ||||||||
Abercrombie & Fitch Co., Class A(a) | 2,964 | 167,081 | ||||||
American Eagle Outfitters, Inc. | 10,987 | 182,494 | ||||||
America’s Car-Mart, Inc.(a) | 358 | 32,574 | ||||||
Asbury Automotive Group, Inc.(a) | 1,218 | 280,225 | ||||||
Boot Barn Holdings, Inc.(a) | 1,775 | 144,112 | ||||||
Buckle, Inc. (The) | 1,770 | 59,100 | ||||||
Caleres, Inc. | 2,027 | 58,297 | ||||||
Chico’s FAS, Inc.(a) | 7,340 | 54,903 | ||||||
Designer Brands, Inc., Class A | 2,927 | 37,056 | ||||||
Group 1 Automotive, Inc. | 832 | 223,567 | ||||||
Guess?, Inc. | 1,623 | 35,122 | ||||||
Haverty Furniture Cos., Inc. | 799 | 22,995 | ||||||
Hibbett, Inc. | 757 | 35,965 | ||||||
Leslie’s, Inc.(a)(b) | 10,940 | 61,920 | ||||||
MarineMax, Inc.(a)(b) | 1,185 | 38,892 | ||||||
Monro, Inc. | 1,868 | 51,874 | ||||||
National Vision Holdings, Inc.(a) | 4,647 | 75,189 | ||||||
ODP Corp. (The)(a) | 2,014 | 92,946 | ||||||
Sally Beauty Holdings, Inc.(a) | 6,408 | 53,699 | ||||||
Shoe Carnival, Inc. | 1,073 | 25,784 | ||||||
Signet Jewelers Ltd. | 2,688 | 193,025 | ||||||
Sleep Number Corp.(a)(b) | 1,254 | 30,836 | ||||||
Sonic Automotive, Inc., Class A | 947 | 45,229 | ||||||
Upbound Group, Inc. | 2,729 | 80,369 | ||||||
Urban Outfitters, Inc.(a) | 3,346 | 109,381 | ||||||
Victoria’s Secret & Co.(a) | 4,589 | 76,545 | ||||||
|
| |||||||
2,269,180 | ||||||||
Technology Hardware, Storage & Peripherals — 0.2% | ||||||||
Avid Technology, Inc.(a) | 2,016 | 54,170 | ||||||
Corsair Gaming, Inc.(a) | 2,553 | 37,095 | ||||||
|
| |||||||
91,265 | ||||||||
Textiles, Apparel & Luxury Goods — 1.1% | ||||||||
G-III Apparel Group Ltd.(a) | 2,413 | 60,132 |
Security | Shares | Value | ||||||
| ||||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||
Hanesbrands, Inc. | 20,824 | $ | 82,463 | |||||
Kontoor Brands, Inc. | 2,957 | 129,842 | ||||||
Movado Group, Inc. | 929 | 25,408 | ||||||
Oxford Industries, Inc. | 878 | 84,402 | ||||||
Steven Madden Ltd. | 4,208 | 133,688 | ||||||
Wolverine World Wide, Inc. | 4,728 | 38,108 | ||||||
|
| |||||||
554,043 | ||||||||
Trading Companies & Distributors — 1.9% | ||||||||
Applied Industrial Technologies, Inc. | 2,292 | 354,366 | ||||||
Boise Cascade Co. | 2,344 | 241,526 | ||||||
DXP Enterprises, Inc.(a) | 815 | 28,476 | ||||||
GMS, Inc.(a) | 2,414 | 154,424 | ||||||
NOW, Inc.(a) | 6,345 | 75,315 | ||||||
Veritiv Corp. | 806 | 136,133 | ||||||
|
| |||||||
990,240 | ||||||||
Water Utilities — 1.0% | ||||||||
American States Water Co. | 2,196 | 172,781 | ||||||
California Water Service Group | 3,427 | 162,132 | ||||||
Middlesex Water Co. | 1,055 | 69,894 | ||||||
SJW Group | 1,711 | 102,848 | ||||||
|
| |||||||
507,655 | ||||||||
Wireless Telecommunication Services — 0.4% | ||||||||
Gogo, Inc.(a) | 3,672 | 43,807 | ||||||
Shenandoah Telecommunications Co. | 2,988 | 61,583 | ||||||
Telephone & Data Systems, Inc. | 5,821 | 106,582 | ||||||
|
| |||||||
211,972 | ||||||||
|
| |||||||
Total Long-Term Investments — 97.9% |
| 50,181,201 | ||||||
|
| |||||||
Short-Term Securities |
| |||||||
Money Market Funds — 7.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) | 1,872,345 | 1,873,094 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e) | 1,904,260 | 1,904,260 | ||||||
|
| |||||||
Total Short-Term Securities — 7.4% |
| 3,777,354 | ||||||
|
| |||||||
Total Investments — 105.3% |
| 53,958,555 | ||||||
Liabilities in Excess of Other Assets — (5.3)% |
| (2,737,409 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 51,221,146 | |||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period end. |
(f) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
26 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 | Purchases at Cost | Proceeds from Sale | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 09/30/23 | Shares Held at 09/30/23 | Income | Capital Gain | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 718,829 | $ | 1,154,004 | (a) | $ | — | $ | 48 | $ | 213 | $ | 1,873,094 | 1,872,345 | $ | 2,324 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,812,611 | 91,649 | (a) | — | — | — | 1,904,260 | 1,904,260 | 29,792 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 48 | $ | 213 | $ | 3,777,354 | $ | 32,116 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Micro E-Mini Russell 2000 Index | 9 | 12/15/23 | $ | 81 | $ | (522 | ) | |||||||||
|
|
OTC Total Return Swaps
| ||||||||||||||||||||||||
Reference Entity | Payment Frequency | Counterparty(a) | Termination Date | Net Notional | Accrued Unrealized Appreciation (Depreciation) | Net Value of Reference Entity | Gross Notional Amount Net Asset Percentage | |||||||||||||||||
| ||||||||||||||||||||||||
Equity Securities Long/Short | Monthly | Goldman Sachs Bank USA(b) | 08/19/26 | $ | 336,505 | $ | (12,183 | )(c) | $ | 324,972 | 0.7 | % | ||||||||||||
Monthly | HSBC Bank PLC(d) | 02/10/28 | 394,303 | (23,597 | )(e) | 372,139 | 0.8 | |||||||||||||||||
Monthly | JPMorgan Chase Bank NA(f) | 02/08/24 | 252,065 | (7,789 | )(g) | 242,997 | 0.5 | |||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | (43,569 | ) | $ | 940,108 | ||||||||||||||||||||
|
|
|
|
(a) | The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. |
(c) | Amount includes $(650) of net dividends, payable for referenced securities purchased and financing fees. |
(e) | Amount includes $(1,433) of net dividends, payable for referenced securities purchased and financing fees. |
(g) | Amount includes $1,279 of net dividends, payable for referenced securities purchased and financing fees. |
The | following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest: |
(b) | (d) | (f) | ||||||
Range: | 75 basis points | 40 basis points | 40 basis points | |||||
Benchmarks: | USD - 1D Overnight Fed Funds Effective Rate | USD - 1D Overnight Bank Funding Rate | USD - 1D Overnight Bank Funding Rate | |||||
(FEDL01) | (OBFR01) | (OBFR01) |
SCHEDULES OF INVESTMENTS | 27 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF |
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date February 27, 2023.
| ||||||||||||
Shares | Value | % of Basket Value | ||||||||||
| ||||||||||||
Reference Entity — Long | ||||||||||||
Common Stocks | ||||||||||||
Banks | ||||||||||||
Bank of Hawaii Corp. | 49 | $ | 2,435 | 0.7 | % | |||||||
BankUnited, Inc. | 32 | 726 | 0.2 | |||||||||
Central Pacific Financial Corp. | 11 | 183 | 0.1 | |||||||||
City Holding Co. | 47 | 4,246 | 1.3 | |||||||||
Community Bank System, Inc. | 104 | 4,390 | 1.4 | |||||||||
CVB Financial Corp. | 279 | 4,623 | 1.4 | |||||||||
First Financial Bancorp | 33 | 647 | 0.2 | |||||||||
First Hawaiian, Inc. | 109 | 1,967 | 0.6 | |||||||||
Fulton Financial Corp. | 1,181 | 14,302 | 4.4 | |||||||||
Hanmi Financial Corp. | 120 | 1,948 | 0.6 | |||||||||
Independent Bank Corp. | 60 | 2,945 | 0.9 | |||||||||
Independent Bank Group, Inc. | 69 | 2,729 | 0.8 | |||||||||
National Bank Holdings Corp., Class A | 81 | 2,411 | 0.7 | |||||||||
Northwest Bancshares, Inc. | 366 | 3,744 | 1.2 | |||||||||
OFG Bancorp | 5 | 149 | 0.0 | |||||||||
Pacific Premier Bancorp, Inc. | 144 | 3,133 | 1.0 | |||||||||
Provident Financial Services, Inc. | 1 | 15 | 0.0 | |||||||||
ServisFirst Bancshares, Inc. | 39 | 2,035 | 0.6 | |||||||||
Simmons First National Corp., Class A | 469 | 7,954 | 2.4 | |||||||||
Triumph Bancorp, Inc. | 33 | 2,138 | 0.7 | |||||||||
TrustCo Bank Corp. | 13 | 355 | 0.1 | |||||||||
Trustmark Corp. | 150 | 3,260 | 1.0 | |||||||||
Westamerica BanCorp | 4 | 173 | 0.1 | |||||||||
WSFS Financial Corp. | 25 | 913 | 0.3 | |||||||||
|
|
|
| |||||||||
67,421 | ||||||||||||
Capital Markets | ||||||||||||
Artisan Partners Asset Management, Inc., Class A | 1,303 | 48,758 | 15.0 | |||||||||
Moelis & Co., Class A | 128 | 5,777 | 1.8 | |||||||||
|
|
|
| |||||||||
54,535 | ||||||||||||
Commercial Services & Supplies | ||||||||||||
Pitney Bowes, Inc. | 1,110 | 3,352 | 1.0 | |||||||||
|
|
|
| |||||||||
Consumer Finance | ||||||||||||
Bread Financial Holdings, Inc. | 693 | 23,701 | 7.3 | |||||||||
|
|
|
| |||||||||
Financial Services | ||||||||||||
Payoneer Global, Inc. | 517 | 3,164 | 1.0 | |||||||||
|
|
|
| |||||||||
Insurance | ||||||||||||
Employers Holdings, Inc. | 79 | 3,156 | 1.0 | |||||||||
Genworth Financial, Inc., Class A | 333 | 1,952 | 0.6 | |||||||||
Horace Mann Educators Corp. | 390 | 11,458 | 3.5 | |||||||||
Safety Insurance Group, Inc. | 1 | 68 | 0.0 | |||||||||
|
|
|
| |||||||||
16,634 | ||||||||||||
Mortgage Real Estate Investment Trusts (REITs) | ||||||||||||
Arbor Realty Trust, Inc. | 9,609 | 145,865 | 44.9 | |||||||||
|
|
|
|
| ||||||||||||
Shares | Value | % of Basket Value | ||||||||||
| ||||||||||||
Office REITs | ||||||||||||
Douglas Emmett, Inc. | 322 | $ | 4,108 | 1.3 | % | |||||||
SL Green Realty Corp. | 166 | 6,192 | 1.9 | |||||||||
|
|
|
| |||||||||
10,300 | ||||||||||||
|
| |||||||||||
Net Value of Reference Entity — Goldman Sachs Bank USA | $ | 324,972 | ||||||||||
|
|
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 10, 2023.
| ||||||||||||
Shares | Value | % of Basket Value | ||||||||||
| ||||||||||||
Reference Entity — Long | ||||||||||||
Common Stocks | ||||||||||||
Banks | ||||||||||||
Atlantic Union Bankshares Corp. | 430 | $ | 12,375 | 3.3 | % | |||||||
Berkshire Hills Bancorp, Inc. | 194 | 3,890 | 1.1 | |||||||||
First BanCorp/Puerto Rico | 39 | 525 | 0.2 | |||||||||
First Commonwealth Financial Corp. | 123 | 1,502 | 0.4 | |||||||||
Lakeland Financial Corp. | 8 | 380 | 0.1 | |||||||||
Seacoast Banking Corp. of Florida | 91 | 1,998 | 0.5 | |||||||||
Veritex Holdings, Inc. | 27 | 484 | 0.1 | |||||||||
|
|
|
| |||||||||
21,154 | ||||||||||||
Capital Markets | ||||||||||||
Moelis & Co., Class A | 3,814 | 172,126 | 46.2 | |||||||||
|
|
|
| |||||||||
Commercial Services & Supplies | ||||||||||||
Pitney Bowes, Inc. | 2,998 | 9,054 | 2.4 | |||||||||
|
|
|
| |||||||||
Consumer Finance | ||||||||||||
Green Dot Corp., Class A | 15 | 209 | 0.1 | |||||||||
|
|
|
| |||||||||
Financial Services | ||||||||||||
Radian Group, Inc. | 5,675 | 142,499 | 38.3 | |||||||||
|
|
|
| |||||||||
Insurance | ||||||||||||
James River Group Holdings Ltd. | 220 | 3,377 | 0.9 | |||||||||
ProAssurance Corp. | 273 | 5,157 | 1.4 | |||||||||
|
|
|
| |||||||||
8,534 | ||||||||||||
Multi-Utilities | ||||||||||||
Avista Corp. | 102 | 3,302 | 0.9 | |||||||||
|
|
|
| |||||||||
Oil, Gas & Consumable Fuels | ||||||||||||
Green Plains, Inc. | 507 | 15,261 | 4.1 | |||||||||
|
|
|
| |||||||||
Net Value of Reference Entity — HSBC Bank PLC | $ | 372,139 | ||||||||||
|
|
28 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF |
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 8, 2023.
| ||||||||||||
Shares | Value | % of Basket Value | ||||||||||
| ||||||||||||
Reference Entity — Long | ||||||||||||
Common Stocks | ||||||||||||
Banks | ||||||||||||
Central Pacific Financial Corp. | 1,050 | $ | 17,514 | 7.2 | % | |||||||
Community Bank System, Inc. | 48 | 2,026 | 0.8 | |||||||||
First Bancorp | 32 | 900 | 0.4 | |||||||||
National Bank Holdings Corp., Class A | 105 | 3,125 | 1.3 | |||||||||
Preferred Bank | 183 | 11,392 | 4.7 | |||||||||
Seacoast Banking Corp. of Florida | 47 | 1,032 | 0.4 | |||||||||
Veritex Holdings, Inc. | 57 | 1,023 | 0.4 | |||||||||
Washington Federal, Inc. | 226 | 5,790 | 2.4 | |||||||||
|
|
|
| |||||||||
42,802 |
| ||||||||||||
Shares | Value | % of Basket Value | ||||||||||
| ||||||||||||
Consumer Finance | ||||||||||||
Bread Financial Holdings, Inc. | 494 | $ | 16,895 | 6.9 | % | |||||||
Green Dot Corp., Class A | 1,776 | 24,739 | 10.2 | |||||||||
|
|
|
| |||||||||
41,634 | ||||||||||||
Financial Services | ||||||||||||
Payoneer Global, Inc. | 2,523 | 15,441 | 6.4 | |||||||||
|
|
|
| |||||||||
Insurance | ||||||||||||
Genworth Financial, Inc., Class A | 624 | 3,657 | 1.5 | |||||||||
|
|
|
| |||||||||
Office REITs | ||||||||||||
Douglas Emmett, Inc. | 9,552 | 121,884 | 50.2 | |||||||||
|
|
|
| |||||||||
Oil, Gas & Consumable Fuels | ||||||||||||
Green Plains, Inc. | 584 | 17,579 | 7.2 | |||||||||
|
|
|
| |||||||||
Net Value of Reference Entity — JPMorgan Chase Bank NA | $ | 242,997 | ||||||||||
|
|
Balances Reported in the Statements of Assets and Liabilities for OTC Swaps
Description | Swap Premiums Paid | Swap Premiums Received | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
OTC Swaps | $ | — | $ | — | $ | — | $ | (43,569 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) | $ | — | $ | — | $ | 522 | $ | — | $ | — | $ | — | $ | 522 | ||||||||||||||
Swaps — OTC | ||||||||||||||||||||||||||||
Unrealized depreciation on OTC swaps; | ||||||||||||||||||||||||||||
Swap premiums received | — | — | 43,569 | — | — | — | 43,569 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 44,091 | $ | — | $ | — | $ | — | $ | 44,091 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
SCHEDULES OF INVESTMENTS | 29 |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 7,089 | $ | — | $ | — | $ | — | $ | 7,089 | ||||||||||||||
Swaps | — | — | (173,387 | ) | — | — | — | (173,387 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | (166,298 | ) | $ | — | $ | — | $ | — | $ | (166,298 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | (3,451 | ) | $ | — | $ | — | $ | — | $ | (3,451 | ) | ||||||||||||
Swaps | — | — | 56,527 | — | — | — | 56,527 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | — | $ | — | $ | 53,076 | $ | — | $ | — | $ | — | $ | 53,076 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
| |||
Average notional value of contracts — long | $ | 92,820 | ||
Total return swaps |
| |||
Average notional amount | $ | 1,307,124 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments – Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments | ||||||||
Futures contracts | �� | $ | — | $ | 473 | |||
Swaps — OTC(a) | — | 43,569 | ||||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | $ | — | $ | 44,042 | ||||
|
|
|
| |||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | (473 | ) | |||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | — | $ | 43,569 | ||||
|
|
|
|
(a) | Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statements of Assets and Liabilities. |
The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||||||||||
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Non- Cash | Cash Collateral Pledged(b) | Net Amount of Derivative Liabilities(c) | |||||||||||||||
| ||||||||||||||||||||
Goldman Sachs Bank USA | $ | 12,183 | $ | — | $ | — | $ | — | $ | 12,183 | ||||||||||
HSBC Bank PLC | 23,597 | — | — | — | 23,597 | |||||||||||||||
J.P. Morgan Securities LLC | 7,789 | — | — | — | 7,789 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 43,569 | $ | — | $ | — | $ | — | $ | 43,569 | |||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount payable due to the counterparty in the event of default. |
30 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) September 30, 2023 | iShares® ESG Screened S&P Small-Cap ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 50,181,201 | $ | — | $ | — | $ | 50,181,201 | ||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 3,777,354 | — | — | 3,777,354 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 53,958,555 | $ | — | $ | — | $ | 53,958,555 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Equity Contracts | $ | (522 | ) | $ | (43,569 | ) | $ | — | $ | (44,091 | ) | |||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 31 |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares ESG Screened S&P 500 ETF | iShares ESG Screened S&P Mid-Cap ETF | iShares ESG Screened S&P Small-Cap ETF | ||||||||||
ASSETS |
| |||||||||||
Investments, at value — unaffiliated(a)(b) | $ | 154,911,210 | $ | 111,389,032 | $ | 50,181,201 | ||||||
Investments, at value — affiliated(c) | 2,111,248 | 5,452,392 | 3,777,354 | |||||||||
Cash | 2,291 | 250,584 | 982 | |||||||||
Cash pledged: | ||||||||||||
Futures contracts | 18,000 | — | 7,000 | |||||||||
Receivables: | ||||||||||||
Investments sold | 138,164 | 734,534 | 70,212 | |||||||||
Securities lending income — affiliated | 85 | 1,060 | 371 | |||||||||
Dividends — unaffiliated | 98,194 | 131,277 | 59,125 | |||||||||
Dividends — affiliated | 1,449 | 1,166 | 5,541 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 157,280,641 | 117,960,045 | 54,101,786 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Collateral on securities loaned | 718,432 | 4,833,818 | 1,872,877 | |||||||||
Payables: | ||||||||||||
Investments purchased | 138,164 | 1,047,462 | 733,462 | |||||||||
Swaps | — | — | 15,118 | |||||||||
Income dividend distributions | 727,574 | 469,448 | 210,027 | |||||||||
Investment advisory fees | 11,687 | 10,921 | 5,114 | |||||||||
Variation margin on futures contracts | 840 | — | 473 | |||||||||
Unrealized depreciation on OTC swaps | — | — | 43,569 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 1,596,697 | 6,361,649 | 2,880,640 | |||||||||
|
|
|
|
|
| |||||||
Commitments and contingent liabilities | ||||||||||||
NET ASSETS | $ | 155,683,944 | $ | 111,598,396 | $ | 51,221,146 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 175,642,034 | $ | 121,015,721 | $ | 58,158,809 | ||||||
Accumulated loss | (19,958,090 | ) | (9,417,325 | ) | (6,937,663 | ) | ||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 155,683,944 | $ | 111,598,396 | $ | 51,221,146 | ||||||
|
|
|
|
|
| |||||||
NET ASSET VALUE | ||||||||||||
Shares outstanding | $ | 4,800,000 | $ | 3,300,000 | $ | 1,550,000 | ||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 32.43 | $ | 33.82 | $ | 33.05 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Investments, at cost — unaffiliated | $ | 174,932,636 | $ | 114,585,845 | $ | 53,271,582 | ||||||
(b) Securities loaned, at value | $ | 699,188 | $ | 4,711,850 | $ | 1,819,843 | ||||||
(c) Investments, at cost — affiliated | $ | 2,268,069 | $ | 5,450,976 | $ | 3,776,848 |
See notes to financial statements.
32 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Operations (unaudited)
Six Months Ended September 30, 2023
iShares ESG Screened S&P 500 ETF | iShares ESG Screened S&P Mid-Cap ETF | iShares ESG Screened S&P Small-Cap ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliated | $ | 1,224,288 | $ | 899,662 | $ | 414,969 | ||||||
Dividends — affiliated | 15,163 | 6,834 | 29,792 | |||||||||
Securities lending income — affiliated — net | 648 | 11,267 | 2,324 | |||||||||
Foreign taxes withheld | (439 | ) | — | (338 | ) | |||||||
|
|
|
|
|
| |||||||
Total investment income | 1,239,660 | 917,763 | 446,747 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory | 68,970 | 63,235 | 28,944 | |||||||||
Interest expense | 1 | — | 332 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 68,971 | 63,235 | 29,276 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 1,170,689 | 854,528 | 417,471 | |||||||||
|
|
|
|
|
| |||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (650,270 | ) | (2,818,922 | ) | (2,032,951 | ) | ||||||
Investments — affiliated | (12,346 | ) | (118 | ) | 48 | |||||||
Futures contracts | 29,614 | 7,384 | 7,089 | |||||||||
In-kind redemptions — unaffiliated(a) | 3,823,796 | — | 324,502 | |||||||||
In-kind redemptions — affiliated(a) | 3,209 | — | — | |||||||||
Swaps | — | — | (173,387 | ) | ||||||||
|
|
|
|
|
| |||||||
3,194,003 | (2,811,656 | ) | (1,874,699 | ) | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — unaffiliated | 5,732,610 | 1,721,058 | 209,230 | |||||||||
Investments — affiliated | (4,312 | ) | 843 | 213 | ||||||||
Futures contracts | (25,846 | ) | (5,977 | ) | (3,451 | ) | ||||||
Swaps | — | — | 56,527 | |||||||||
|
|
|
|
|
| |||||||
5,702,452 | 1,715,924 | 262,519 | ||||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 8,896,455 | (1,095,732 | ) | (1,612,180 | ) | |||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1 0,067,144 | $ | (241,204) | $ | (1,194,709) | ||||||
|
|
|
|
|
|
(a) | See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
FINANCIAL STATEMENTS | 33 |
Statements of Changes in Net Assets
iShares ESG Screened S&P 500 ETF | iShares ESG Screened S&P Mid-Cap ETF | |||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 1,170,689 | $ | 2,778,031 | $ | 854,528 | $ | 1,361,122 | ||||||||||||
Net realized gain (loss) | 3,194,003 | (16,055,490 | ) | (2,811,656 | ) | (246,383 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) | 5,702,452 | (13,931,777 | ) | 1,715,924 | (4,171,650 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 10,067,144 | (27,209,236 | ) | (241,204 | ) | (3,056,911 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (1,126,854 | ) | (2,794,860 | ) | (749,972 | ) | (1,398,055 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 16,949,782 | (68,616,036 | ) | 10,543,554 | 29,834,804 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS | ||||||||||||||||||||
Total increase (decrease) in net assets | 25,890,072 | (98,620,132 | ) | 9,552,378 | 25,379,838 | |||||||||||||||
Beginning of period | 129,793,872 | 228,414,004 | 102,046,018 | 76,666,180 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 155,683,944 | $ | 129,793,872 | $ | 111,598,396 | $ | 102,046,018 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
34 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
iShares ESG Screened S&P Small-Cap ETF | ||||||||
Six Months Ended 09/30/23 (unaudited) | Year Ended 03/31/23 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 417,471 | $ | 518,233 | ||||
Net realized loss | (1,874,699 | ) | (476,254 | ) | ||||
Net change in unrealized appreciation (depreciation) | 262,519 | (2,242,704 | ) | |||||
|
|
|
| |||||
Net decrease in net assets resulting from operations | (1,194,709 | ) | (2,200,725 | ) | ||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (362,825 | ) | (524,007 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 8,678,807 | 22,208,671 | ||||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase in net assets | 7,121,273 | 19,483,939 | ||||||
Beginning of period | 44,099,873 | 24,615,934 | ||||||
|
|
|
| |||||
End of period | $ | 51,221,146 | $ | 44,099,873 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
(For a share outstanding throughout each period)
iShares ESG Screened S&P 500 ETF | ||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited | ) | | Year Ended 03/31/23 | | | Year Ended 03/31/22 | | | Period From 09/22/20 to 03/31/21 | (a)
| |||||||||
Net asset value, beginning of period | $ | 30.90 | $ | 34.35 | $ | 30.27 | $ | 25.29 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(b) | 0.22 | 0.42 | 0.39 | 0.21 | ||||||||||||||||
Net realized and unrealized gain(c) | 1.53 | (3.45 | ) | 4.07 | 4.91 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase from investment operations | 1.75 | (3.03 | ) | 4.46 | 5.12 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(d) | (0.22 | ) | (0.42 | ) | (0.38 | ) | (0.14 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 32.43 | $ | 30.90 | $ | 34.35 | $ | 30.27 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total Return(e) | ||||||||||||||||||||
Based on net asset value | 5.68 | %(f) | (8.72 | )% | 14.74 | % | 20.27 | %(f) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(g) | ||||||||||||||||||||
Total expenses | 0.08 | %(h) | 0.08 | % | 0.08 | % | 0.08 | %(h) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.36 | %(h) | 1.40 | % | 1.12 | % | 1.37 | %(h) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 155,684 | $ | 129,794 | $ | 228,414 | $ | 30,274 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(i) | 2 | % | 4 | % | 3 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Where applicable, assumes the reinvestment of distributions. |
(f) | Not annualized. |
(g) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
36 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG Screened S&P Mid-Cap ETF | ||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited | ) | | Year Ended 03/31/23 | | | Year Ended 03/31/22 | | | Period From 09/22/20 to 03/31/21 | (a)
| |||||||||
Net asset value, beginning of period | $ | 34.02 | $ | 36.51 | $ | 35.89 | $ | 25.19 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(b) | 0.28 | 0.52 | 0.46 | 0.22 | ||||||||||||||||
Net realized and unrealized gain(c) | (0.24 | ) | (2.50 | ) | 0.58 | 10.66 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase from investment operations | 0.04 | (1.98 | ) | 1.04 | 10.88 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(d) | (0.24 | ) | (0.51 | ) | (0.42 | ) | (0.18 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 33.82 | $ | 34.02 | $ | 36.51 | $ | 35.89 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total Return(e) | ||||||||||||||||||||
Based on net asset value | 0.11 | %(f) | (5.35 | )% | 2.88 | % | 43.29 | %(f) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(g) | ||||||||||||||||||||
Total expenses | 0.12 | %(h) | 0.12 | % | 0.12 | % | 0.12 | %(h) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.62 | %(h) | 1.55 | % | 1.23 | % | 1.29 | %(h) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 111,598 | $ | 102,046 | $ | 76,666 | $ | 19,740 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(i) | 12 | % | 20 | % | 26 | % | 11 | % | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Where applicable, assumes the reinvestment of distributions. |
(f) | Not annualized. |
(g) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 37 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG Screened S&P Small-Cap ETF | ||||||||||||||||||||
| Six Months Ended 09/30/23 (unaudited | ) | | Year Ended 03/31/23 | | | Year Ended 03/31/22 | | | Period From 09/22/20 to 03/31/21 | (a)
| |||||||||
Net asset value, beginning of period | $ | 33.92 | $ | 37.87 | $ | 38.81 | $ | 25.18 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(b) | 0.30 | 0.51 | 0.39 | 0.20 | ||||||||||||||||
Net realized and unrealized gain(c) | (0.92 | ) | (3.97 | ) | (0.55 | ) | 13.69 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase from investment operations | (0.62 | ) | (3.46 | ) | (0.16 | ) | 13.89 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Distributions from net investment income(d) | (0.25 | ) | (0.49 | ) | (0.78 | ) | (0.26 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 33.05 | $ | 33.92 | $ | 37.87 | $ | 38.81 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total Return(e) | ||||||||||||||||||||
Based on net asset value | (1.85 | )%(f) | (9.08 | )% | (0.47 | )% | 55.32 | %(f) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets(g) | ||||||||||||||||||||
Total expenses | 0.12 | %(h) | 0.12 | % | 0.12 | % | 0.12 | %(h) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.73 | %(h) | 1.49 | % | 1.00 | % | 1.13 | %(h) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 51,221 | $ | 44,100 | $ | 24,616 | $ | 9,701 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(i)(j) | 11 | % | 23 | % | 34 | % | 18 | % | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Where applicable, assumes the reinvestment of distributions. |
(f) | Not annualized. |
(g) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Excludes underlying investments in total return swaps. |
See notes to financial statements.
38 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
| ||||
iShares ETF | Diversification Classification | |||
| ||||
ESG Screened S&P 500 | Non-Diversified | |||
ESG Screened S&P Mid-Cap | Non-Diversified | |||
ESG Screened S&P Small-Cap | Non-Diversified | |||
|
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
ForeignTaxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
NOTES TO FINANCIAL STATEMENTS | 39 |
Notes to Financial Statements (unaudited) (continued)
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
• | Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy
40 | 2 0 2 3 I SHARES S E M I - A N N U A L REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
| ||||||||||||||||
iShares ETF and Counterparty | | Securities Loaned at Value | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received, at Fair Value | (a) | | Net Amount | | ||||
| ||||||||||||||||
ESG Screened S&P 500 | ||||||||||||||||
Barclays Bank PLC | $ | 186,686 | $ | (186,686 | ) | $ | — | $ | — | |||||||
Citigroup Global Markets, Inc. | 3,548 | (3,548 | ) | — | — | |||||||||||
HSBC Bank PLC | 184,027 | (184,027 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 141,744 | (141,744 | ) | — | — | |||||||||||
UBS AG | 183,183 | (183,183 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 699,188 | $ | (699,188 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
ESG Screened S&P Mid-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 771,966 | $ | (771,966 | ) | $ | — | $ | — | |||||||
BofA Securities, Inc. | 241,444 | (241,444 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 215,442 | (215,442 | ) | — | — | |||||||||||
Jefferies LLC | 387,532 | (387,532 | ) | — | — | |||||||||||
RBC Capital Market LLC | 355,912 | (355,912 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. | 818,741 | (818,741 | ) | — | — | |||||||||||
Toronto-Dominion Bank | 738,083 | (738,083 | ) | — | — | |||||||||||
UBS AG | 1,182,730 | (1,182,730 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4,711,850 | $ | (4,711,850 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
ESG Screened S&P Small-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 449 | $ | (449 | ) | $ | — | $ | — | |||||||
Barclays Capital, Inc. | 20,622 | (20,622 | ) | — | — | |||||||||||
BofA Securities, Inc. | 31,023 | (31,023 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. | 1,056 | (1,056 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC | 986,429 | (986,429 | ) | — | — | |||||||||||
HSBC Bank PLC | 172,410 | (172,410 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC | 551,987 | (551,987 | ) | — | — | |||||||||||
Jefferies LLC | 37,251 | (37,251 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. | 18,616 | (18,616 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,819,843 | $ | (1,819,843 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
NOTES TO FINANCIAL STATEMENTS | 41 |
Notes to Financial Statements (unaudited) (continued)
Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.
Total return swaps are entered into by the iShares ESG Screened S&P Small-Cap to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).
Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.
Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.
Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty.
Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and
42 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |||
ESG Screened S&P 500 | 0.08 | % | ||
ESG Screened S&P Mid-Cap | 0.12 | |||
ESG Screened S&P Small-Cap | 0.12 |
Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for
the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
| ||||
iShares ETF | Amounts | |||
| ||||
ESG Screened S&P 500 | $ | 249 | ||
ESG Screened S&P Mid-Cap | 3,644 | |||
ESG Screened S&P Small-Cap | 828 | |||
|
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
| ||||||||||||
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
| ||||||||||||
ESG Screened S&P 500 | $ | 804,269 | $ | 884,825 | $ | (219,609 | ) | |||||
ESG Screened S&P Mid-Cap | 3,902,636 | 4,660,463 | (1,928,235 | ) | ||||||||
ESG Screened S&P Small-Cap | 971,638 | 1,778,155 | (672,507 | ) | ||||||||
|
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
NOTES TO FINANCIAL STATEMENTS | 43 |
Notes to Financial Statements (unaudited) (continued)
7. | PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
| ||||||||
iShares ETF | Purchases | Sales | ||||||
| ||||||||
ESG Screened S&P 500 | $ | 2,637,250 | $ | 2,614,754 | ||||
ESG Screened S&P Mid-Cap | 12,738,317 | 12,397,986 | ||||||
ESG Screened S&P Small-Cap | 6,458,785 | 5,123,738 | ||||||
|
For the six months ended September 30, 2023, in-kind transactions were as follows:
| ||||||||
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
| ||||||||
ESG Screened S&P 500 | $ | 53,248,028 | $ | 36,338,387 | ||||
ESG Screened S&P Mid-Cap | 10,412,037 | 2,119 | ||||||
ESG Screened S&P Small-Cap | 9,204,603 | 1,510,752 | ||||||
|
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains and qualified late-year losses as follows:
| ||||||||
iShares ETF | Non-Expiring Capital Loss Carryforwards | Qualified Late-Year Ordinary Losses | ||||||
| ||||||||
ESG Screened S&P 500 | $ | 2,733,274 | $ | — | ||||
ESG Screened S&P Mid-Cap | 2,793,371 | — | ||||||
ESG Screened S&P Small-Cap | 1,397,798 | 259,092 | ||||||
|
As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
| ||||||||||||||||
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
ESG Screened S&P 500 | $ | 177,459,267 | $ | 5,523,591 | $ | (25,972,952 | ) | $ | (20,449,361 | ) | ||||||
ESG Screened S&P Mid-Cap | 120,755,388 | 10,499,499 | (14,413,463 | ) | (3,913,964 | ) | ||||||||||
ESG Screened S&P Small-Cap | 57,472,351 | 4,315,061 | (7,872,948 | ) | (3,557,887 | ) | ||||||||||
|
9. PRINCIPAL RISKS
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
44 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
ESG Screened S&P 500 | ||||||||||||||||
Shares sold | 1,700,000 | $ | 53,415,630 | 2,700,000 | $ | 79,779,151 | ||||||||||
Shares redeemed | (1,100,000 | ) | (36,465,848 | ) | (5,150,000 | ) | (148,395,187 | ) | ||||||||
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600,000 | $ | 16,949,782 | (2,450,000 | ) | $ | (68,616,036 | ) | |||||||||
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NOTES TO FINANCIAL STATEMENTS | 45 |
Notes to Financial Statements (unaudited) (continued)
Six Months Ended 09/30/23 | Year Ended 03/31/23 | |||||||||||||||
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
ESG Screened S&P Mid-Cap | ||||||||||||||||
Shares sold | 300,000 | $ | 10,543,554 | 1,350,000 | $ | 44,682,535 | ||||||||||
Shares redeemed | — | — | (450,000 | ) | (14,847,731 | ) | ||||||||||
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300,000 | $ | 10,543,554 | 900,000 | $ | 29,834,804 | |||||||||||
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ESG Screened S&P Small-Cap | ||||||||||||||||
Shares sold | 300,000 | $ | 10,386,814 | 850,000 | $ | 28,860,781 | ||||||||||
Shares redeemed | (50,000 | ) | (1,708,007 | ) | (200,000 | ) | (6,652,110 | ) | ||||||||
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250,000 | $ | 8,678,807 | 650,000 | $ | 22,208,671 | |||||||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
46 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
iShares ESG Screened S&P 500 ETF, iShares ESG Screened S&P Mid-Cap ETF, iShares ESG Screened S&P Small-Cap ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 47 |
Board Review and Approval of Investment Advisory Contract (continued)
calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
48 | 2 0 2 3 I SHARES SEMI - ANNUA L REPORT TO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
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iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
ESG Screened S&P Mid-Cap | $ | 0.235765 | $ | — | $ | — | $ | 0.235765 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||
ESG Screened S&P Small-Cap | 0.253202 | — | — | 0.253202 | 100 | — | — | 100 |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
SUPPLEMENTAL INFORMATION | 49 |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
50 | 2 0 2 3 I SHARES SEMI - ANNUAL REPORT TO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
NVS | Non-Voting Shares | |
REIT | Real Estate Investment Trust | |
S&P | Standard & Poor’s |
GLOSSARY OF TERMS USED IN THIS REPORT | 51 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representations regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-315-0923
(b) Not Applicable
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 for Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the registrant.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. | Controls and Procedures. |
(a) The President (the registrant’s Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 13. | Exhibits. |
(a) (1) Not applicable to this semi-annual report.
(a) (2) Section 302 Certifications are attached.
(a) (3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable
(a) (4) Change in Registrant’s independent public accountant – 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/ Dominik Rohe | |||
Dominik Rohe, President (Principal Executive Officer) |
Date: November 20, 2023
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/ Dominik Rohe | |||
Dominik Rohe, President (Principal Executive Officer) |
Date: November 20, 2023
By: | /s/ Trent Walker | |||||
Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer) |
Date: November 20, 2023