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
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| iShares Trust | ||
| (Exact name of registrant as specified in charter) | |||
c/o: State Street Bank and Trust Company |
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100 Summer Street, 4th Floor, Boston, MA | 02110 | |||
(Address of principal executive offices) |
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The Corporation Trust Company |
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1209 Orange Street, Wilmington, DE 19801 |
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| (Name and address of agent for service) | |||
Registrant's telephone number, including area code: | (415) 670-2000 |
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Date of fiscal year end: | August 31, 2020 |
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Date of reporting period: | February 29, 2020 |
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Item 1. Reports to Stockholders.
Copies of the semi-annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are attached.
FEBRUARY 29, 2020 |
2020 Semi-Annual Report (Unaudited) |
iShares Trust
● | iShares MSCI Argentina and Global Exposure ETF | AGT | Cboe BZX |
● | iShares MSCI Brazil Small-Cap ETF | EWZS | NASDAQ |
● | iShares MSCI China ETF | MCHI | NASDAQ |
● | iShares MSCI China Small-Cap ETF | ECNS | NYSE Arca |
● | iShares MSCI Indonesia ETF | EIDO | NYSE Arca |
● | iShares MSCI Peru ETF | EPU | NYSE Arca |
● | iShares MSCI Philippines ETF | EPHE | NYSE Arca |
● | iShares MSCI Poland ETF | EPOL | NYSE Arca |
● | iShares MSCI Qatar ETF | QAT | NASDAQ |
● | iShares MSCI Saudi Arabia ETF | KSA | NYSE Arca |
● | iShares MSCI UAE ETF | UAE | NASDAQ |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® MSCI Argentina and Global Exposure ETF |
Investment Objective
The iShares MSCI Argentina and Global Exposure ETF (the “Fund”) seeks to track the investment results of a broad-based equity index with exposure to Argentina, as represented by the MSCI All Argentina 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | 2.25 | % | (17.43 | )% | (7.25 | )% | (17.43 | )% | (19.29 | )% | |||||||||||
Fund Market | 3.71 | (16.31 | ) | (6.82 | ) | (16.31 | ) | (18.23 | ) | ||||||||||||
Index | 2.32 | (17.39 | ) | (7.39 | ) | (17.39 | ) | (19.62 | ) |
The inception date of the Fund was 4/25/17. The first day of secondary market trading was 4/27/17.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
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| Ending Account Value |
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| Expenses Paid During |
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| Beginning Account Value |
| Ending Account Value |
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| Expenses Paid During |
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| Annualized Expense |
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(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 1,022.50 | $ | 1.21 | $ | 1,000.00 | $ | 1,023.70 | $ | 1.21 | 0.24 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | GEOGRAPHIC ALLOCATION | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Country/Geographic Region | Total Investments(a) | |
Consumer Discretionary | 28.9% | Argentina | 65.1% | |
Financials | 14.4 | United States | 21.5 | |
Consumer Staples | 13.5 | Chile | 9.9 | |
Information Technology | 11.3 | Canada | 3.0 | |
Energy | 9.0 | United Kingdom | 0.5 | |
Utilities | 7.4 | |||
Materials | 6.0 | |||
Communication Services | 5.0 | |||
Real Estate | 3.3 | |||
Industrials | 1.2 | |||
(a) Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® MSCI Brazil Small-Cap ETF |
Investment Objective
The iShares MSCI Brazil Small-Cap ETF(the “Fund”) seeks to track the investment results of an index composed of small-capitalization Brazilian equities, as represented by the MSCI Brazil Small Cap Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since | |||||||||||||||||||||||
Fund NAV | 6.88 | % | 14.82 | % | 12.34 | % | (0.68 | )% | 14.82 | % | 78.90 | % | (6.20 | )% | |||||||||||||||
Fund Market | 6.59 | 14.38 | 11.90 | (0.73 | ) | 14.38 | 75.49 | (6.69 | ) | ||||||||||||||||||||
Index | 7.27 | 15.78 | 12.91 | (0.15 | ) | 15.78 | 83.52 | (1.38 | ) |
The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,068.80 | $ | 2.98 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Consumer Discretionary | 29.0% | YDUQS Part | 4.6% | |
Utilities | 19.4 | Via Varejo SA | 4.6 | |
Industrials | 14.0 | Azul SA | 4.2 | |
Materials | 7.1 | TOTVS SA | 3.7 | |
Health Care | 7.1 | Cyrela Brazil Realty SA Empreendimentos e Participacoes | 2.7 | |
Consumer Staples | 6.7 | Qualicorp Consultoria e Corretora de Seguros SA | 2.6 | |
Real Estate | 5.7 | Bradespar SA (Preferred) | 2.6 | |
Information Technology | 5.4 | Cia. Paranaense de Energia (Preferred) | 2.5 | |
Financials | 3.3 | Cia. de Locacao das Americas | 2.4 | |
Energy | 1.7 | Cia. de Saneamento do Parana | 2.2 | |
Communication Services | 0.6 | |||
(a) Excludes money market funds. |
4 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® MSCI China ETF |
Investment Objective
The iShares MSCI China ETF (the “Fund”) seeks to track the investment results of an index composed of Chinese equities that are available to international investors, as represented by the MSCI China Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 9.85 | % | 2.64 | % | 4.93 | % | 4.40 | % | 2.64 | % | 27.21 | % | 46.82 | % | |||||||||||||||
Fund Market | 10.99 | 3.82 | 5.00 | 4.52 | 3.82 | 27.65 | 48.32 | ||||||||||||||||||||||
Index | 10.24 | 3.29 | 5.49 | 4.95 | 3.29 | 30.66 | 53.94 |
The inception date of the Fund was 3/29/11. The first day of secondary market trading was 3/31/11.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,098.50 | $ | 3.03 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Consumer Discretionary | 27.5% | Alibaba Group Holding Ltd. | 17.4% | |
Communication Services | 21.3 | Tencent Holdings Ltd. | 13.7 | |
Financials | 19.2 | China Construction Bank Corp., Class H | 3.7 | |
Industrials | 5.6 | Ping An Insurance Group Co. of China Ltd., Class H | 3.0 | |
Real Estate | 5.4 | China Mobile Ltd. | 2.3 | |
Information Technology | 5.0 | Industrial & Commercial Bank of China Ltd., Class H | 2.1 | |
Health Care | 4.7 | Baidu Inc. | 1.6 | |
Consumer Staples | 3.6 | Bank of China Ltd., Class H | 1.5 | |
Energy | 3.0 | JD. com Inc. | 1.4 | |
Utilities | 2.4 | CNOOC Ltd. | 1.2 | |
Materials | 2.3 | |||
(a) Excludes money market funds. |
F u n d S u m m a r y | 5 |
Fund Summary as of February 29, 2020 | iShares® MSCI China Small-Cap ETF |
Investment Objective
The iShares MSCI China Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Chinese equities that are available to international investors, as represented by the MSCI China Small Cap Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 4.13 | % | (7.77 | )% | 1.13 | % | 0.54 | % | (7.77 | )% | 5.75 | % | 5.19 | % | |||||||||||||||
Fund Market | 4.40 | (8.28 | ) | 1.20 | 0.59 | (8.28 | ) | 6.17 | 5.68 | ||||||||||||||||||||
Index | 4.10 | (7.76 | ) | 0.19 | (0.19 | ) | (7.76 | ) | 0.94 | (1.81 | ) |
The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,041.30 | $ | 2.94 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Consumer Discretionary | 19.4% | Chinasoft International Ltd. | 1.7% | |
Real Estate | 18.7 | China Overseas Property Holdings Ltd. | 1.5 | |
Information Technology | 13.2 | Fanhua Inc. . | 1.4 | |
Industrials | 11.6 | China Overseas Grand Oceans Group Ltd. | 1.4 | |
Health Care | 10.4 | China SCE Group Holdings Ltd. | 1.4 | |
Materials | 8.9 | China Youzan Ltd. | 1.4 | |
Communication Services | 5.4 | Yuexiu REIT | 1.4 | |
Financials | 4.1 | Atlas Crop | 1.2 | |
Utilities | 3.7 | 21Vianet Group Inc. | 1.2 | |
Consumer Staples | 2.9 | China Yuhua Education Corp Ltd. | 1.2 | |
Energy | 1.7 | |||
(a) Excludes money market funds. |
6 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® MSCI Indonesia ETF |
Investment Objective
The iShares MSCI Indonesia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Indonesian equities, as represented by the MSCI Indonesia IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (14.75 | )% | (16.15 | )% | (3.45 | )% | 0.45 | % | (16.15 | )% | (16.10 | )% | 4.47 | % | |||||||||||||||
Fund Market | (13.72 | ) | (14.18 | ) | (3.18 | ) | 0.55 | (14.18 | ) | (14.94 | ) | 5.56 | |||||||||||||||||
Index | (14.59 | ) | (15.32 | ) | (2.87 | ) | 0.98 | (15.32 | ) | (13.56 | ) | 10.02 |
The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.
Index performance through May 28, 2019 reflects the performance of MSCI Indonesia Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Indonesia IMI 25/50 Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 852.50 | $ | 2.67 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Financials | 43.2% | Bank Central Asia Tbk PT | 17.8% | |
Consumer Staples | 14.5 | Bank Rakyat Indonesia Persero Tbk PT | 13.0 | |
Communication Services | 12.8 | Telekomunikasi Indonesia Persero Tbk PT | 9.3 | |
Materials | 8.5 | Bank Mandiri Persero Tbk PT | 6.4 | |
Consumer Discretionary | 7.1 | Astra International Tbk PT | 4.3 | |
Real Estate | 4.7 | Bank Negara Indonesia Persero Tbk PT | 3.5 | |
Energy | 3.2 | Unilever Indonesia Tbk PT | 3.5 | |
Industrials | 2.9 | Charoen Pokphand Indonesia Tbk PT | 2.8 | |
Health Care | 1.8 | Semen Indonesia Persero Tbk PT | 2.1 | |
Utilities | 1.0 | Indofood Sukses Makmur Tbk PT | 1.9 | |
Information Technology | 0.3 | |||
(a) Excludes money market funds. |
F u n d S u m m a r y | 7 |
Fund Summary as of February 29, 2020 | iShares® MSCI Peru ETF |
Investment Objective
The iShares MSCI Peru ETF (the “Fund”) seeks to track the investment results of an index composed of Peruvian equities, as represented by the MSCI All Peru Capped Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (7.27 | )% | (16.24 | )% | 2.91 | % | 2.37 | % | (16.24 | )% | 15.43 | % | 26.37 | % | |||||||||||||||
Fund Market | (7.33 | ) | (17.41 | ) | 2.86 | 2.31 | (17.41 | ) | 15.16 | 25.60 | |||||||||||||||||||
Index | (6.84 | ) | (15.52 | ) | 3.70 | 2.94 | (15.52 | ) | 19.94 | 33.57 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 927.30 | $ | 2.78 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Materials | 41.1% | Credicorp Ltd. | 22.6% | |
Financials | 31.0 | Southern Copper Corp | 11.6 | |
Consumer Staples | 9.5 | Cia. de Minas Buenaventura SAA | 10.5 | |
Utilities | 6.6 | Luz del Sur SAA | 4.7 | |
Industrials | 5.4 | InRetail Peru Corp. | 4.6 | |
Real Estate | 2.3 | Alicorp SAA | 4.5 | |
Consumer Discretionary | 2.2 | Intercorp Financial Services Inc. | 4.4 | |
Energy | 1.9 | Ferreycorp SAA | 3.4 | |
Hochschild Mining PLC | 3.3 | |||
Banco BBVA Peru SA | 3.3 | |||
(a) Excludes money market funds. |
8 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® MSCI Philippines ETF |
Investment Objective
The iShares MSCI Philippines ETF (the "Fund") seeks to track the investment results of a broad-based index composed of Philippine equities, as represented by the MSCI Philippines Investable Market Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (13.85 | )% | (11.72 | )% | (5.99 | )% | 2.67 | % | (11.72 | )% | (26.55 | )% | 28.19 | % | |||||||||||||||
Fund Market | (14.70 | ) | (11.70 | ) | (6.21 | ) | 2.56 | (11.70 | ) | (27.44 | ) | 26.94 | |||||||||||||||||
Index | (13.45 | ) | (11.02 | ) | (5.36 | ) | 3.25 | (11.02 | ) | (24.07 | ) | 35.12 |
The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 861.50 | $ | 2.68 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Industrials | 31.1% | SM Prime Holdings Inc. | 13.7% | |
Real Estate | 28.5 | Ayala Land Inc. | 10.2 | |
Financials | 18.7 | BDO Unibank Inc. | 9.7 | |
Communication Services | 5.1 | SM Investments Corp | 8.3 | |
Utilities | 4.9 | JG Summit Holdings Inc. | 6.9 | |
Consumer Staples | 4.9 | Universal Robina Corp | 4.4 | |
Consumer Discretionary | 4.7 | Ayala Corp | 4.4 | |
Energy | 1.4 | International Container Terminal Services Inc. | 3.8 | |
Materials | 0.7 | Metropolitan Bank & Trust Co. | 3.6 | |
PLDT Inc. | 3.0 | |||
(a) Excludes money market funds. |
F u n d S u m m a r y | 9 |
Fund Summary as of February 29, 2020 | iShares® MSCI Poland ETF |
Investment Objective
The iShares MSCI Poland ETF(the “Fund”) seeks to track the investment results of a broad-based index composed of Polish equities, as represented by the MSCI Poland IMI 25/50 Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (16.49 | )% | (26.19 | )% | (4.62 | )% | (0.72 | )% | (26.19 | )% | (21.05 | )% | (6.84 | )% | |||||||||||||||
Fund Market | (15.10 | ) | (24.79 | ) | (4.24 | ) | (0.59 | ) | (24.79 | ) | (19.50 | ) | (5.57 | ) | |||||||||||||||
Index | (17.02 | ) | (26.59 | ) | (4.61 | ) | (0.55 | ) | (26.59 | ) | (21.02 | ) | (5.24 | ) |
The inception date of the Fund was 5/25/10. The first day of secondary market trading was 5/26/10.
Index performance through February 11, 2013 reflects the performance of the MSCI Poland Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Poland IMI 25/50 Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During | Beginning Account Value | Ending Account Value |
| Expenses Paid During |
| Annualized Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20 | ) | the Period | (a) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 835.10 | $ | 4.15 | $ | 1,000.00 | $ | 1,020.30 | $ | 4.57 | 0.91% |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||
Percent of | Percent of | |||
Sector | Total Investments(a) | Security | Total Investments(a) | |
Financials | 41.3% | Powszechna Kasa Oszczednosci Bank Polski SA | 14.3% | |
Communication Services | 17.2 | Powszechny Zaklad Ubezpieczen SA | 10.9 | |
Energy | 15.2 | CD Projekt SA | 9.4 | |
Consumer Discretionary | 7.0 | Polski Koncern Naftowy ORLEN SA | 9.2 | |
Materials | 5.6 | Bank Polska Kasa Opieki SA | 4.6 | |
Consumer Staples | 4.7 | Santander Bank Polska SA | 4.5 | |
Utilities | 4.4 | LPP SA | 4.4 | |
Information Technology | 2.0 | KGHM Polska Miedz SA | 4.0 | |
Industrials | 1.9 | Dino Polska SA | 3.8 | |
Health Care | 0.7 | Cyfrowy Polsat SA | 3.5 | |
(a) Excludes money market funds. |
10 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® MSCI Qatar ETF |
Investment Objective
The iShares MSCI Qatar ETF (the “Fund”) seeks to track the investment results of an index composed of Qatar equities, as represented by the MSCI All Qatar Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||
Fund NAV | (6.25 | )% | (8.09 | )% | (3.71 | )% | (3.31 | )% | (8.09 | )% | (17.22 | )% | (17.84 | )% | |||||||
Fund Market | (8.90 | ) | (10.69 | ) | (4.60 | ) | (3.90 | ) | (10.69 | ) | (20.98 | ) | (20.72 | ) | |||||||
Index | (5.87 | ) | (7.32 | ) | (3.00 | ) | (2.68 | ) | (7.32 | ) | (14.13 | ) | (14.66 | ) |
The inception date of the Fund was 4/29/14. The first day of secondary market trading was 5/1/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 937.50 | $ | 2.79 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BYSECTOR | TEN LARGESTHOLDINGS | |||||||
Sector | Percent of Total Investments | (a) | Security | Percent of Total Investments | (a) | |||
Financials | 52.6 | % | Qatar National Bank QPSC | 22.6 | % | |||
Industrials | 12.7 | Qatar Islamic Bank SAQ | 8.4 | |||||
Real Estate | 8.5 | Industries Qatar QSC | 7.6 | |||||
Energy | 8.3 | Masraf Al Rayan QSC | 7.0 | |||||
Materials | 6.5 | Commercial Bank PSQC (The) | 4.5 | |||||
Communication Services | 4.6 | Qatar Electricity & Water Co. QSC | 4.3 | |||||
Utilities | 4.3 | Mesaieed Petrochemical Holding Co | 4.2 | |||||
Consumer Staples | 1.4 | Qatar Fuel QSC | 3.8 | |||||
Health Care | 1.1 | Qatar International Islamic Bank QSC | 3.5 | |||||
Barwa Real Estate Co.. | 3.5 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 11 |
Fund Summary as of February 29, 2020 | iShares® MSCI Saudi Arabia ETF |
Investment Objective
The iShares MSCI Saudi Arabia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Saudi Arabian equities, as represented by the MSCI Saudi Arabia IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | |||||||||||
Fund NAV | (7.09 | )% | (10.24 | )% | 4.81 | % | (10.24 | )% | 23.27 | % | |||||
Fund Market | (9.01 | ) | (12.70 | ) | 4.35 | (12.70 | ) | 20.91 | |||||||
Index | (6.75 | ) | (9.65 | ) | 5.63 | (9.65 | ) | 27.65 |
The inception date of the Fund was 9/16/15. The first day of secondary market trading was 9/17/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 929.10 | $ | 3.55 | $ | 1,000.00 | $ | 1,021.20 | $ | 3.72 | 0.74 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BYSECTOR | ALLOCATION BYSECTOR | |||||||
Sector | Percent of Total Investments | (a) | Security | Percent of Total Investments | (a) | |||
Financials | 44.3 | % | Al Rajhi Bank . | 12.2 | % | |||
Materials | 24.2 | Saudi Basic Industries Corp | 9.5 | |||||
Communication Services | 7.7 | National Commercial Bank | 8.5 | |||||
Energy | 6.6 | Saudi Arabian Oil Co. | 5.7 | |||||
Consumer Staples | 4.8 | Saudi Telecom Co | 5.2 | |||||
Consumer Discretionary | 4.5 | Riyad Bank | 4.2 | |||||
Utilities | 2.6 | Samba Financial Group | 4.1 | |||||
Health Care | 2.4 | Banque Saudi Fransi | 3.1 | |||||
Real Estate | 2.1 | Saudi British Bank (The) | 3.0 | |||||
Industrials | 0.8 | Alinma Bank. | 2.9 |
(a) | Excludes money market funds. |
12 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® MSCI UAE ETF |
Investment Objective
The iShares MSCI UAE ETF (the “Fund”) seeks to track the investment results of an index composed of UAE equities, as represented by the MSCI All UAE Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||
Fund NAV | (12.41 | )% | (11.48 | )% | (5.24 | )% | (8.02 | )% | (11.48 | )% | (23.59 | )% | (38.60 | )% | |||||||
Fund Market | (12.43 | ) | (13.90 | ) | (5.50 | ) | (8.22 | ) | (13.90 | ) | (24.63 | ) | (39.38 | ) | |||||||
Index | (12.59 | ) | (11.31 | ) | (4.81 | ) | (7.69 | ) | (11.31 | ) | (21.83 | ) | (37.31 | ) |
The inception date of the Fund was 4/29/14. The first day of secondary market trading was 5/1/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 875.90 | $ | 2.71 | $ | 1,000.00 | $ | 1,022.00 | $ | 2.92 | 0.58 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||||||
Sector | Percent of Total Investments | (a) | Security | Percent of Total Investments | (a) | |||
Financials | 46.5 | % | First Abu Dhabi Bank PJSC | 22.0 | % | |||
Real Estate | 14.6 | Emirates Telecommunications Group Co. PJSC | 14.5 | |||||
Industrials | 14.6 | Abu Dhabi Commercial Bank PJSC. | 9.7 | |||||
Communication Services | 14.5 | Aldar Properties PJSC. | 4.6 | |||||
Energy | 4.5 | DP World PLC... | 4.5 | |||||
Health Care | 2.7 | Dubai Islamic Bank PJSC . | 4.3 | |||||
Consumer Discretionary | 1.5 | Air Arabia PJSC . | 4.0 | |||||
Consumer Staples | 1.1 | Emaar Properties PJSC... | 3.9 | |||||
Dana Gas PJSC . | 3.7 | |||||||
(a) Excludes money market funds. | Dubai Investments PJSC | 3.4 |
F u n d S u m m a r y | 13 |
Past performance is no guarantee 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calcu ate 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.
Shareholder Expenses
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs ( n dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
14 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI Argentina and Global Exposure ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Argentina — 65.0% | ||||||||
Adecoagro SA(a) | 76,403 | $ | 499,676 | |||||
Arcos Dorados Holdings Inc., Class A | 83,713 | 539,112 | ||||||
Banco BBVA Argentina SA, ADR(a)(b) | 88,669 | 357,336 | ||||||
Banco Macro SA, ADR | 25,547 | 740,352 | ||||||
Central Puerto SA, ADR | 122,081 | 395,542 | ||||||
Corp. America Airports SA(a)(b) | 39,702 | 169,527 | ||||||
Cresud SACIF y A, ADR(a) | 40,449 | 195,369 | ||||||
Despegar.com Corp.(a)(b) | 39,944 | 478,928 | ||||||
Empresa Distribuidora y Comercializadora Norte SA, ADR(a) | 25,482 | 113,650 | ||||||
Globant SA(a) | 13,799 | 1,559,425 | ||||||
Grupo Financiero Galicia SA, ADR | 51,109 | 646,018 | ||||||
Grupo Supervielle SA, ADR | 88,198 | 236,371 | ||||||
IRSA Inversiones y Representaciones SA, ADR(a)(b) | 28,714 | 157,640 | ||||||
IRSA Propiedades Comerciales SA, ADR | 7,816 | 92,620 | ||||||
Loma Negra Cia Industrial Argentina SA, ADR(a)(b) | 70,540 | 409,132 | ||||||
Pampa Energia SA, ADR(a)(b) | 43,385 | 514,112 | ||||||
Telecom Argentina SA, ADR | 59,481 | 689,980 | ||||||
Transportadora de Gas del Sur SA, Class B | 78,579 | 440,828 | ||||||
YPF SA, ADR | 90,850 | 725,891 | ||||||
8,961,509 | ||||||||
Canada — 3.0% | ||||||||
SSR Mining Inc.(a) | 26,638 | 416,73 | ||||||
Chile — 6.4% | ||||||||
Cencosud SA | 397,883 | 465,627 | ||||||
Cia. Cervecerias Unidas SA | 55,642 | 416,740 | ||||||
882,367 | ||||||||
United Kingdom — 0.5% | ||||||||
Phoenix Global Resources PLC(a)(b) | 449,135 | 64,539 | ||||||
United States — 21.5% | ||||||||
MercadoLibre Inc.(a) | 4,806 | 2,960,640 | ||||||
Total Common Stocks — 96.4% | ||||||||
(Cost: $19,184,985) | 13,285,786 |
Security | Shares | Value | ||||||
Preferred Stocks | ||||||||
Chile — 3.4% | ||||||||
Embotelladora Andina SA, Class B, Preference Shares | 196,962 | $ | 474,199 | |||||
Total Preferred Stocks — 3.4% | ||||||||
(Cost: $572,155) | 474,199 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 7.5% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e) | 1,023,730 | 1,024,447 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 1,000 | 11,000 | ||||||
1,035,447 | ||||||||
Total Short-Term Investments — 7.5% | ||||||||
(Cost: $1,035,273) | 1,035,447 | |||||||
Total Investments in Securities — 107.3% | ||||||||
(Cost: $20,792,413) | 14,795,432 | |||||||
Other Assets, Less Liabilities — (7.3)% | (1,006,253 | ) | ||||||
Net Assets — 100.0% | $ | 13,789,179 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 197,599 | 826,131 | 1,023,730 | $ | 1,024,447 | $ | 1,937 | (b) | $ | (198 | ) | $ | 132 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 8,000 | 3,000 | 11,000 | 11,000 | 361 | — | — | |||||||||||||||||||||
$ | 1,035,447 | $ | 2,298 | $ | (198 | ) | $ | 132 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
S c h e d u l e o f I n v e s t m e n t s | 15 |
ScheduleofInvestments (unaudited) (continued) | iShares® MSCI Argentina and Global Exposure ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Tota | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 13,285,786 | $ | — | $ | — | $ | 13,285,786 | ||||||||
Preferred Stocks | 474,199 | — | — | 474,199 | ||||||||||||
Money Market Funds | 1,035,447 | — | — | 1,035,447 | ||||||||||||
$ | 14,795,432 | $ | — | $ | — | $ | 14,795,432 |
See notes to financial statements
16 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI Brazil Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Auto Components — 0.8% | ||||||||
Mahle-Metal Leve SA | 95,000 | $ | 567,475 | |||||
Tupy S A | 171,000 | 829,672 | ||||||
1,397,147 | ||||||||
Banks — 1.1% | ||||||||
Banco Inter SA | 190,000 | 1,954,052 | ||||||
Diversified Consumer Services — 6.0% | ||||||||
Anima Holding SA | 190,000 | 1,516,075 | ||||||
Ser Educacional SA(a) | 152,053 | 869,520 | ||||||
YDUQS Part | 684,037 | 7,867,339 | ||||||
10,252,934 | ||||||||
Electric Utilities — 7.4% | ||||||||
Alupar Investimento SA | 380,000 | 2,375,184 | ||||||
EDP - Energias do Brasil SA | 800,000 | 3,622,621 | ||||||
Light SA | 590,100 | 2,836,938 | ||||||
Transmissora Alianca de EnergiaEletrica SA | 570,000 | 3,788,924 | ||||||
12,623,667 | ||||||||
Food Products — 6.7% | ||||||||
Camil Alimentos SA | 281,000 | 526,916 | ||||||
M. Dias Branco SA | 228,000 | 2,071,969 | ||||||
Marfrig Global Foods SA(b) | 1,197,000 | 3,202,329 | ||||||
Minerva SA(b) | 682,000 | 1,756,528 | ||||||
Sao Martinho SA | 456,000 | 2,677,389 | ||||||
SLC Agricola SA | 247,000 | 1,104,250 | ||||||
11,339,381 | ||||||||
Health Care Providers & Services — 7.0% | ||||||||
Alliar Medicos A Frente SA | 133,000 | 555,684 | ||||||
Fleury SA | 533,100 | 3,516,464 | ||||||
Instituto Hermes Pardini SA | 133,000 | 847,528 | ||||||
Odontoprev SA | 705,000 | 2,576,762 | ||||||
Qualicorp Consultoria e Corretora de Seguros SA | 589,000 | 4,471,369 | ||||||
11,967,807 | ||||||||
Hotels, Restaurants & Leisure — 2.0% | ||||||||
BK Brasil Operacao e Assessoria a Restaurantes SA | 435,000 | 1,412,510 | ||||||
CVC Brasil Operadora e Agencia de Viagens SA | 343,100 | 1,956,704 | ||||||
3,369,214 | ||||||||
Household Durables — 7.8% | ||||||||
Construtora Tenda SA | 174,264 | 1,354,591 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 684,000 | 4,522,452 | ||||||
Even Construtora e Incorporadora SA(b) | 304,000 | 966,245 | ||||||
Ez Tec Empreendimentos e Participacoes SA | 229,195 | 2,362,233 | ||||||
MRV Engenharia e Participacoes SA | 796,000 | 3,438,662 | ||||||
Trisul SA | 228,000 | 729,737 | ||||||
13,373,920 | ||||||||
Independent Power and Renewable Electricity Producers — 3.4% | ||||||||
AES Tiete Energia SA | 397,048 | 1,338,557 | ||||||
Eneva SA(b) | 285,000 | 2,700,509 | ||||||
Omega Geracao SA(b) | 196,000 | 1,683,419 | ||||||
5,722,485 | ||||||||
Insurance — 0.4% | ||||||||
Wiz Solucoes e Corretagem de Seguros SA | 190,000 | 593,796 | ||||||
Machinery — 0.7% | ||||||||
Iochpe Maxion SA | 285,007 | 1,228,051 | ||||||
Media — 0.6% | ||||||||
Smiles Fidelidade SA | 150,095 | 1,090,535 |
Security | Shares | Value | ||||||
Multiline Retail — 0.5% | ||||||||
Marisa Lojas SA(b) | 304,000 | $ | 924,469 | |||||
Oil, Gas & Consumable Fuels — 1.7% | ||||||||
Dommo Energia SA(b) | 304,060 | 87,613 | ||||||
Enauta Participacoes SA. | 209,000 | 615,653 | ||||||
Petro Rio SA(b) | 247,000 | 2,157,038 | ||||||
2,860,304 | ||||||||
Paper & Forest Products — 1.9% | ||||||||
Duratex SA | 817,000 | 3,149,099 | ||||||
Real Estate Management & Development — 5.7% | ||||||||
Aliansce Sonae Shopping Centers SA(b) | 342,091 | 3,462,879 | ||||||
BR Properties SA(b) | 571,100 | 1,744,319 | ||||||
Iguatemi Empresa de Shopping Centers SA | 228,007 | 2,518,278 | ||||||
JHSF Participacoes SA | 665,000 | 1,033,247 | ||||||
LOG Commercial Properties e Participacoes SA | 152,092 | 929,748 | ||||||
9,688,471 | ||||||||
Road & Rail — 5.0% | ||||||||
Cia. de Locacao das Americas.. | 855,000 | 4,010,018 | ||||||
Cosan Logistica SA(b) | 361,084 | 1,451,811 | ||||||
JSL SA | 171,000 | 1,050,640 | ||||||
Movida Participacoes SA | 342,000 | 1,364,468 | ||||||
Tegma Gestao Logistica SA | 76,000 | 592,954 | ||||||
8,469,891 | ||||||||
Software — 5.4% | ||||||||
Linx SA | 418,000 | 2,907,327 | ||||||
TOTVS SA | 399,772 | 6,292,112 | ||||||
9,199,439 | ||||||||
Specialty Retail — 5.5% | ||||||||
Grupo SBF SA(b) | 171,000 | 1,652,143 | ||||||
Via Varejo SA(b) | 2,525,000 | 7,728,935 | ||||||
9,381,078 | ||||||||
Textiles, Apparel & Luxury Goods — 4.1% | ||||||||
Arezzo Industria e Comercio SA. | 14,080 | 1,519,667 | ||||||
Cia. Hering | 380,000 | 1,898,463 | ||||||
Grendene SA | 705,000 | 1,515,743 | ||||||
Guararapes Confeccoes SA. | 266,060 | 1,621,724 | ||||||
Vulcabras Azaleia SA(b) | 247,000 | 432,502 | ||||||
6,988,099 | ||||||||
Transportation Infrastructure — 1.6% | ||||||||
EcoRodovias Infraestrutura e Logistica SA(b) | 513,000 | 1,794,275 | ||||||
Santos Brasil Participacoes SA | 705,000 | 926,634 | ||||||
2,720,909 | ||||||||
Water Utilities — 3.5% | ||||||||
Cia. de Saneamento de Minas Gerais-COPASA | 164,270 | 2,195,898 | ||||||
Cia. de Saneamento do Parana | 171,455 | 3,819,274 | ||||||
6,015,172 | ||||||||
Total Common Stocks — 78.8% | ||||||||
(Cost: $109,384,847) | 134,309,920 | |||||||
Preferred Stocks | ||||||||
Airlines — 5.1% | ||||||||
Azul SA, Preference Shares, NVS. | 722,000 | 7,111,739 | ||||||
Gol Linhas Aereas Inteligentes SA, Preference | ||||||||
Shares, NVS | 285,000 | 1,617,147 | ||||||
8,728,886 |
S c h e d u l e o f I n v e s t m e n t s | 17 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Brazil Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Banks — 1.8% | ||||||||
Banco ABC Brasil SA, Preference Shares, NVS | 209,042 | $ | 925,750 | |||||
Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS | 532,000 | 2,140,192 | ||||||
3,065,942 | ||||||||
Chemicals — 0.5% | ||||||||
Unipar Carbocloro SA, Preference Shares, NVS | 133,033 | 790,240 | ||||||
Electric Utilities — 2.5% | ||||||||
Cia. Paranaense de Energia, Preference Shares, NVS | 266,095 | 4,229,422 | ||||||
Independent Power and Renewable Electricity Producers — 2.1% | ||||||||
Cia. Energetica de Sao Paulo, Class B, Preference Shares, NVS | 494,000 | 3,569,515 | ||||||
Machinery — 1.5% | ||||||||
Marcopolo SA, Preference Shares, NVS | 1,330,014 | 1,444,498 | ||||||
Randon SA Implemetos e Participacoes, Preference Shares, NVS | 437,050 | 1,131,458 | ||||||
2,575,956 | ||||||||
Metals & Mining — 4.7% | ||||||||
Bradespar SA, Preference Shares, NVS | 589,093 | 4,359,783 | ||||||
Cia. Ferro Ligas da Bahia-Ferbasa, Preference Shares, NVS | 14,000 | 450,780 | ||||||
Metalurgica Gerdau SA, Preference Shares, NVS | 1,860,000 | 3,277,515 | ||||||
8,088,078 | ||||||||
Textiles, Apparel & Luxury Goods — 2.1% | ||||||||
Alpargatas SA, Preference Shares, NVS | 513,080 | 3,586,835 |
Security | Shares | Value | ||||||
Water Utilities — 0.5% | ||||||||
Cia. de Saneamento do Parana, Preference Shares, NVS | 190,000 | $ | 833,841 | |||||
Total Preferred Stocks — 20.8% | ||||||||
(Cost: $28,601,455) | 35,468,715 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 164,000 | 164,000 | ||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $164,000) | 164,000 | |||||||
Total Investments in Securities — 99.7% | ||||||||
(Cost: $138,150,302) | 169,942,635 | |||||||
Other Assets, Less Liabilities — 0.3% | 589,408 | |||||||
Net Assets — 100.0% | $ | 170,532,043 |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Non-income producing security. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity 02/29/20 | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 125,000 | 39,000 | 164,000 | $ | 164,000 | $ | 781 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020.The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Tota | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 134,309,920 | $ | — | $ | — | $ | 134,309,920 | ||||||||
Preferred Stocks | 35,468,715 | — | — | 35,468,715 | ||||||||||||
Money Market Funds | 164,000 | — | — | 164,000 | ||||||||||||
$ | 169,942,635 | $ | — | $ | — | $ | 169,942,635 |
See notes to financial statements
18 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.1% | ||||||||
AECC Aviation Power Co. Ltd., Class A | 351,776 | $ | 1,162,488 | |||||
AVIC Aircraft Co. Ltd., Class A | 468,845 | 1,140,891 | ||||||
AVIC Shenyang Aircraft Co. Ltd., Class A(a) | 151,199 | 601,318 | ||||||
AviChina Industry & Technology Co. Ltd., Class H | 6,240,000 | 2,714,419 | ||||||
China Avionics Systems Co. Ltd., Class A | 304,767 | 616,056 | ||||||
China Spacesat Co. Ltd., Class A | 193,270 | 940,332 | ||||||
7,175,504 | ||||||||
Air Freight & Logistics — 0.5% | ||||||||
BEST Inc., ADR(a)(b) | 446,160 | 2,413,726 | ||||||
SF Holding Co. Ltd., Class A | 234,483 | 1,642,005 | ||||||
Sinotrans Ltd., Class H | 5,460,000 | 1,541,373 | ||||||
Yunda Holding Co. Ltd., Class A | 227,601 | 963,125 | ||||||
ZTO Express Cayman Inc., ADR | 705,120 | 16,542,115 | ||||||
23,102,344 | ||||||||
Airlines — 0.2% | ||||||||
Air China Ltd., Class A | 703,489 | 750,769 | ||||||
Air China Ltd., Class H | 3,900,000 | 3,137,796 | ||||||
China Eastern Airlines Corp. Ltd., Class A(a) | 1,677,096 | 1,089,242 | ||||||
China Eastern Airlines Corp. Ltd., Class H(a) | 3,900,000 | 1,671,489 | ||||||
China Southern Airlines Co. Ltd., Class A | 1,399,197 | 1,152,953 | ||||||
China Southern Airlines Co. Ltd., Class H(b) | 3,900,000 | 2,056,833 | ||||||
Spring Airlines Co. Ltd., Class A | 156,085 | 794,917 | ||||||
10,653,999 | ||||||||
Auto Components — 0.2% | ||||||||
Changzhou Xingyu Automotive Lighting Systems Co. | ||||||||
Ltd., Class A | 34,195 | 475,977 | ||||||
China First Capital Group Ltd.(a) | 6,314,000 | 174,195 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class A | 312,598 | 1,036,150 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(c) | 1,215,600 | 3,470,669 | ||||||
Huayu Automotive Systems Co. Ltd., Class A | 468,772 | 1,887,776 | ||||||
Nexteer Automotive Group Ltd. | 1,950,000 | 1,436,280 | ||||||
Ningbo Joyson Electronic Corp., Class A(a) | 195,000 | 732,833 | ||||||
Shandong Linglong Tyre Co. Ltd., Class A | 231,561 | 753,628 | ||||||
Weifu High-Technology Group Co. Ltd., Class A | 193,235 | 542,370 | ||||||
10,509,878 | ||||||||
Automobiles — 1.5% | ||||||||
BAIC Motor Corp. Ltd., Class H(c) | 3,900,000 | 1,911,703 | ||||||
Brilliance China Automotive Holdings Ltd.(b) | 7,126,000 | 6,035,070 | ||||||
BYD Co. Ltd., Class A | 266,159 | 2,489,029 | ||||||
BYD Co. Ltd., Class H(b) | 1,560,000 | 9,548,508 | ||||||
Chongqing Changan Automobile Co. Ltd., Class A | 541,156 | 787,325 | ||||||
Dongfeng Motor Group Co. Ltd., Class H | 6,118,000 | 4,835,960 | ||||||
Geely Automobile Holdings Ltd. | 1,700,000 | 20,808,541 | ||||||
Great Wall Motor Co. Ltd., Class H | 7,215,000 | 5,221,653 | ||||||
Guangzhou Automobile Group Co. Ltd., Class A | 390,000 | 605,347 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 7,020,400 | 7,828,421 | ||||||
NIO Inc., ADR(a)(b) | 1,513,200 | 6,249,516 | ||||||
SAIC Motor Corp. Ltd., Class A | 1,092,076 | 3,469,859 | ||||||
69,790,932 | ||||||||
Banks — 11.4% | ||||||||
Agricultural Bank of China Ltd., Class A | 1,037,000 | 5,384,134 | ||||||
Agricultural Bank of China Ltd., Class H | 64,350,000 | 25,762,955 | ||||||
Bank of Beijing Co. Ltd., Class A . | 3,115,199 | 2,277,284 | ||||||
Bank of Chengdu Co. Ltd., Class A | 616,793 | 720,895 | ||||||
Bank of China Ltd., Class A | 5,031,000 | 2,555,013 | ||||||
Bank of China Ltd., Class H | 181,740,000 | 71,828,001 | ||||||
Bank of Communications Co. Ltd., Class A | 5,850,022 | 4,351,823 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Bank of Communications Co. Ltd., Class H | 19,500,200 | $ | 12,511,276 | |||||
Bank of Guiyang Co. Ltd., Class A. | 616,672 | 741,044 | ||||||
Bank of Hangzhou Co. Ltd., Class A | 859,560 | 1,056,282 | ||||||
Bank of Jiangsu Co. Ltd., Class A | 1,833,078 | 1,673,062 | ||||||
Bank of Nanjing Co. Ltd., Class A | 1,326,000 | 1,472,027 | ||||||
Bank of Ningbo Co. Ltd., Class A | 817,784 | 2,943,470 | ||||||
Bank of Shanghai Co. Ltd., Class A | 2,103,697 | 2,591,175 | ||||||
China CITIC Bank Corp. Ltd., Class A | 1,131,000 | 878,563 | ||||||
China CITIC Bank Corp. Ltd., Class H | 19,890,800 | 10,337,126 | ||||||
China Construction Bank Corp., Class A | 1,443,009 | 1,341,815 | ||||||
China Construction Bank Corp., Class H | 220,350,000 | 178,133,722 | ||||||
China Everbright Bank Co. Ltd., Class A | 5,304,000 | 2,868,175 | ||||||
China Everbright Bank Co. Ltd., Class H | 7,410,000 | 2,966,643 | ||||||
China Merchants Bank Co. Ltd., Class A | 2,845,268 | 13,920,655 | ||||||
China Merchants Bank Co. Ltd., Class H | 8,970,150 | 42,300,898 | ||||||
China Minsheng Banking Corp. Ltd., Class A | 5,024,170 | 4,111,220 | ||||||
China Minsheng Banking Corp. Ltd., Class H. | 16,185,160 | 10,924,342 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H | 5,850,000 | 2,642,354 | ||||||
Huaxia Bank Co. Ltd., Class A | 2,067,091 | 2,055,203 | ||||||
Industrial & Commercial Bank of China Ltd., Class A | 8,073,000 | 6,120,984 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 147,810,000 | 101,093,577 | ||||||
Industrial Bank Co. Ltd., Class A | 2,886,000 | 7,138,414 | ||||||
Jiangsu Changshu Rural Commercial Bank Co. Ltd., Class A | 429,000 | 487,291 | ||||||
Ping An Bank Co. Ltd., Class A | 2,418,055 | 5,015,850 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(c) | 18,330,000 | 11,572,311 | ||||||
Shanghai Pudong Development Bank Co. Ltd., Class A | 4,133,998 | 6,416,680 | ||||||
546,194,264 | ||||||||
Beverages — 1.4% | ||||||||
Anhui Gujing Distillery Co. Ltd., Class A | 34,196 | 598,291 | ||||||
Anhui Kouzi Distillery Co. Ltd., Class A | 17,000 | 749,348 | ||||||
Beijing Shunxin Agriculture Co. Ltd., Class A | 17,000 | 920,574 | ||||||
China Resources Beer Holdings Co. Ltd | 3,120,000 | 14,452,878 | ||||||
Jiangsu King’s Luck Brewery JSC Ltd., Class A | 195,000 | 822,938 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A | 234,076 | 3,260,897 | ||||||
Kweichow Moutai Co. Ltd., Class A | 174,904 | 26,447,530 | ||||||
Luzhou Laojiao Co. Ltd., Class A | 234,000 | 2,503,963 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A | 151,176 | 1,865,316 | ||||||
Sichuan Swellfun Co. Ltd., Class A | 78,000 | 501,908 | ||||||
Tsingtao Brewery Co. Ltd., Class A | 78,163 | 477,463 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 990,000 | 5,144,969 | ||||||
Wuliangye Yibin Co. Ltd., Class A | 543,457 | 9,376,114 | ||||||
67,122,189 | ||||||||
Biotechnology — 0.5% | ||||||||
3SBio Inc.(a)(c) | 3,120,000 | 3,234,882 | ||||||
Beijing Tiantan Biological Products Corp. Ltd., Class A | 192,560 | 953,957 | ||||||
BGI Genomics Co. Ltd., Class A | 73,199 | 867,577 | ||||||
Chongqing Zhifei Biological Products Co. Ltd., Class A | 187,740 | 1,610,919 | ||||||
Hualan Biological Engineering Inc., Class A | 234,000 | 1,389,231 | ||||||
Innovent Biologics Inc.(a)(c) | 2,145,000 | 9,798,731 | ||||||
Shanghai RAAS Blood Products Co. Ltd., Class A(a) | 702,000 | 914,884 | ||||||
Shenzhen Kangtai Biological Products Co. Ltd., Class A | 17,055 | 1,859,262 | ||||||
Walvax Biotechnology Co. Ltd., Class A | 234,397 | 959,022 | ||||||
Zai Lab Ltd., ADR(a) | 79,170 | 4,351,975 | ||||||
25,940,440 | ||||||||
Building Products — 0.1% | ||||||||
Beijing New Building Materials PLC, Class A | 268,160 | 966,730 |
S c h e d u l e o f I n v e s t m e n t s | 19 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Building Products (continued) | ||||||||
China Lesso Group Holdings Ltd. | 2,340,000 | $ | 3,513,130 | |||||
4,479,860 | ||||||||
Capital Markets — 2.0% | ||||||||
Anxin Trust Co. Ltd., Class A(a) | 819,000 | 350,320 | ||||||
Caitong Securities Co. Ltd., Class A | 547,100 | 868,761 | ||||||
Changjiang Securities Co. Ltd., Class A | 898,936 | 866,760 | ||||||
China Cinda Asset Management Co. Ltd., Class H | 19,890,000 | 4,160,207 | ||||||
China Everbright Ltd. | 2,340,000 | 3,903,478 | ||||||
China Galaxy Securities Co. Ltd., Class H | 7,995,000 | 4,411,431 | ||||||
China Huarong Asset Management Co. Ltd., Class H(c) | 19,890,000 | 2,705,411 | ||||||
China International Capital Corp. Ltd., Class H(b)(c) | 3,120,000 | 5,757,130 | ||||||
China Merchants Securities Co. Ltd., Class A | 819,068 | 2,068,117 | ||||||
CITIC Securities Co. Ltd., Class A | 1,389,075 | 4,649,989 | ||||||
CITIC Securities Co. Ltd., Class H | 4,680,000 | 10,004,915 | ||||||
CSC Financial Co. Ltd., Class A | 385,199 | 1,774,951 | ||||||
Dongxing Securities Co. Ltd., Class A | 424,194 | 733,671 | ||||||
East Money Information Co. Ltd., Class A | 1,007,140 | 2,499,768 | ||||||
Everbright Securities Co. Ltd., Class A | 586,199 | 996,258 | ||||||
First Capital Securities Co. Ltd., Class A | 582,789 | 634,463 | ||||||
Founder Securities Co. Ltd., Class A | 1,204,199 | 1,261,013 | ||||||
GF Securities Co. Ltd., Class A | 850,799 | 1,764,840 | ||||||
GF Securities Co. Ltd., Class H | 2,964,000 | 3,544,758 | ||||||
Guosen Securities Co. Ltd., Class A | 586,133 | 986,922 | ||||||
Guotai Junan Securities Co. Ltd., Class A | 1,053,000 | 2,560,871 | ||||||
Guotai Junan Securities Co. Ltd., Class H(c) | 1,794,000 | 2,997,271 | ||||||
Guoyuan Securities Co. Ltd., Class A | 546,000 | 704,546 | ||||||
Haitong Securities Co. Ltd., Class A | 1,209,059 | 2,457,831 | ||||||
Haitong Securities Co. Ltd., Class H | 6,396,000 | 6,869,521 | ||||||
Hithink RoyalFlush Information Network Co. Ltd., Class A | 70,787 | 1,250,534 | ||||||
Huaan Securities Co. Ltd., Class A | 546,000 | 601,442 | ||||||
Huatai Securities Co. Ltd., Class A | 1,014,093 | 2,691,114 | ||||||
Huatai Securities Co. Ltd., Class H(c) | 3,744,000 | 6,504,996 | ||||||
Huaxi Securities Co. Ltd., Class A | 429,000 | 690,431 | ||||||
Industrial Securities Co. Ltd., Class A | 1,016,140 | 1,004,482 | ||||||
Nanjing Securities Co. Ltd., Class A | 468,000 | 904,506 | ||||||
Noah Holdings Ltd.(a)(b) | 78,780 | 2,235,776 | ||||||
Orient Securities Co. Ltd., Class A | 858,064 | 1,223,842 | ||||||
Pacific Securities Co. Ltd. (The), Class A(a) | 1,009,193 | 518,297 | ||||||
SDIC Capital Co. Ltd., Class A | 507,978 | 941,803 | ||||||
Sealand Securities Co. Ltd., Class A | 844,560 | 556,983 | ||||||
Shanxi Securities Co. Ltd., Class A | 544,201 | 611,917 | ||||||
Shenwan Hongyuan Group Co. Ltd., Class A | 3,198,097 | 2,141,154 | ||||||
Sinolink Securities Co. Ltd., Class A | 417,800 | 597,694 | ||||||
SooChow Securities Co. Ltd., Class A | 468,000 | 620,635 | ||||||
Southwest Securities Co. Ltd., Class A | 936,000 | 672,187 | ||||||
Western Securities Co. Ltd., Class A | 619,130 | 838,769 | ||||||
Zheshang Securities Co. Ltd., Class A | 429,000 | 646,857 | ||||||
94,786,622 | ||||||||
Chemicals — 0.3% | ||||||||
Hengli Petrochemical Co. Ltd., Class A | 896,910 | 1,911,814 | ||||||
Hengyi Petrochemical Co. Ltd., Class A | 507,820 | 1,003,261 | ||||||
Lomon Billions Group Co. Ltd., Class A | 429,000 | 958,625 | ||||||
Rongsheng Petro Chemical Co. Ltd., Class A | 858,023 | 1,270,427 | ||||||
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A | 312,000 | 753,421 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class A | 858,000 | 490,973 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 8,580,000 | 2,190,952 | ||||||
Tianqi Lithium Corp., Class A | 239,300 | 1,085,891 |
Security | Shares | Value | ||||||
Chemicals (continued) | ||||||||
Tongkun Group Co. Ltd., Class A | 385,076 | $ | 755,807 | |||||
Transfar Zhilian Co. Ltd., Class A | 814,192 | 724,482 | ||||||
Wanhua Chemical Group Co. Ltd., Class A | 463,173 | 3,116,886 | ||||||
Zhejiang Longsheng Group Co. Ltd., Class A | 500,671 | 925,391 | ||||||
15,187,930 | ||||||||
Commercial Services & Supplies — 0.5% | ||||||||
A-Living Services Co. Ltd., Class H(c) | 975,000 | 4,366,391 | ||||||
Beijing Originwater Technology Co. Ltd., Class A | 541,197 | 763,383 | ||||||
China Everbright International Ltd.. | 8,580,148 | 5,714,190 | ||||||
Country Garden Services Holdings Co. Ltd | 2,730,000 | 10,649,489 | ||||||
Greentown Service Group Co. Ltd | 2,340,000 | 2,924,606 | ||||||
Shanghai M&G Stationery Inc., Class A | 156,000 | 990,873 | ||||||
25,408,932 | ||||||||
Communications Equipment — 0.4% | ||||||||
BYD Electronic International Co. Ltd.(b) | 1,561,000 | 2,924,477 | ||||||
Fiberhome Telecommunication Technologies Co. Ltd., Class A | 190,077 | 815,214 | ||||||
Guangzhou Haige Communications Group Inc. Co., Class A | 460,784 | 790,364 | ||||||
Hengtong Optic-Electric Co. Ltd., Class A | 351,000 | 827,011 | ||||||
Shenzhen Sunway Communication Co. Ltd., Class A(a) | 156,000 | 1,114,286 | ||||||
Yealink Network Technology Corp. Ltd., Class A | 73,196 | 1,092,045 | ||||||
Zhongji Innolight Co. Ltd., Class A | 73,197 | 649,644 | ||||||
ZTE Corp., Class A(a) | 461,656 | 3,302,166 | ||||||
ZTE Corp., Class H(a) | 1,794,040 | 7,424,280 | ||||||
18,939,487 | ||||||||
Construction & Engineering — 0.9% | ||||||||
China Communications Construction Co. Ltd., Class H | 10,530,000 | 7,850,495 | ||||||
China Communications Services Corp. Ltd., Class H | 5,460,800 | 4,225,383 | ||||||
China Gezhouba Group Co. Ltd., Class A | 775,191 | 737,464 | ||||||
China National Chemical Engineering Co. Ltd., Class A | 853,195 | 848,288 | ||||||
China Railway Construction Corp. Ltd., Class A | 1,669,798 | 2,269,332 | ||||||
China Railway Construction Corp. Ltd., Class H | 4,485,000 | 5,133,574 | ||||||
China Railway Group Ltd., Class A | 2,842,198 | 2,183,429 | ||||||
China Railway Group Ltd., Class H | 8,970,000 | 5,064,513 | ||||||
China State Construction Engineering Corp. Ltd., Class A | 5,876,898 | 4,514,741 | ||||||
China State Construction International Holdings Ltd | 4,680,000 | 3,789,376 | ||||||
Metallurgical Corp. of China Ltd., Class A | 2,652,000 | 1,031,936 | ||||||
Metallurgical Corp. of China Ltd., Class H | 7,020,000 | 1,360,212 | ||||||
Power Construction Corp. of China Ltd., Class A | 2,145,097 | 1,304,206 | ||||||
Shanghai Tunnel Engineering Co. Ltd., Class A | 819,000 | 656,119 | ||||||
Sinopec Engineering Group Co. Ltd., Class H | 3,510,000 | 1,738,549 | ||||||
Suzhou Gold Mantis Construction Decoration Co. Ltd., Class A | 500,168 | 620,362 | ||||||
43,327,979 | ||||||||
Construction Materials — 1.0% | ||||||||
Anhui Conch Cement Co. Ltd., Class A | 577,791 | 4,534,579 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 2,925,000 | 21,450,363 | ||||||
BBMG Corp., Class H | 6,630,000 | 1,863,160 | ||||||
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A | 229,196 | 1,018,401 | ||||||
China Jushi Co. Ltd., Class A. | 619,169 | 830,850 | ||||||
China National Building Material Co. Ltd., Class H | 9,360,000 | 10,821,642 | ||||||
China Resources Cement Holdings Ltd. | 5,460,000 | 6,873,124 | ||||||
Huaxin Cement Co. Ltd., Class A | 195,000 | 680,388 | ||||||
Tangshan Jidong Cement Co. Ltd., Class A | 229,168 | 618,966 | ||||||
48,691,473 |
20 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Containers & Packaging — 0.0% | ||||||||
Yunnan Energy New Material Co. Ltd., Class A | 61,300 | $ | 511,608 | |||||
Distributors — 0.0% | ||||||||
Wuchan Zhongda Group Co. Ltd., Class A | 1,087,103 | 741,822 | ||||||
Diversified Consumer Services — 2.0% | ||||||||
China East Education Holdings Ltd.(a)(c) | 975,000 | 1,984,268 | ||||||
China Education Group Holdings Ltd. | 1,560,000 | 2,217,976 | ||||||
New Oriental Education & Technology Group Inc., ADR(a) | 328,770 | 42,046,395 | ||||||
TAL Education Group, ADR(a)(b) | 883,350 | 48,045,407 | ||||||
94,294,046 | ||||||||
Diversified Financial Services — 0.1% | ||||||||
Avic Capital Co. Ltd., Class A | 1,368,082 | 833,743 | ||||||
Bohai Leasing Co. Ltd., Class A(a) | 1,087,199 | 513,255 | ||||||
Far East Horizon Ltd. | 5,070,000 | 4,430,448 | ||||||
5,777,446 | ||||||||
Diversified Telecommunication Services — 1.0% | ||||||||
China Telecom Corp. Ltd., Class H | 31,980,000 | 12,023,713 | ||||||
China Tower Corp. Ltd., Class H(c) | 95,940,000 | 23,267,732 | ||||||
China Unicom Hong Kong Ltd. | 14,040,000 | 11,079,873 | ||||||
46,371,318 | ||||||||
Electrical Equipment — 0.5% | ||||||||
Contemporary Amperex Technology Co. Ltd., Class A | 312,199 | 6,059,346 | ||||||
Dongfang Electric Corp. Ltd., Class A | 468,000 | 619,296 | ||||||
Eve Energy Co. Ltd., Class A(a) | 151,196 | 1,439,457 | ||||||
Fangda Carbon New Material Co. Ltd., Class A(a) | 502,191 | 723,450 | ||||||
Hongfa Technology Co. Ltd., Class A | 117,000 | 572,430 | ||||||
NARI Technology Co. Ltd., Class A | 663,088 | 1,881,067 | ||||||
Shanghai Electric Group Co. Ltd., Class A | 663,000 | 425,863 | ||||||
Shanghai Electric Group Co. Ltd., Class H | 8,580,000 | 2,422,158 | ||||||
Sunwoda Electronic Co. Ltd., Class A | 268,198 | 844,090 | ||||||
TBEA Co. Ltd., Class A | 814,196 | 725,650 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd.,Class A | 532,520 | 801,424 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd.,Class H | 1,794,120 | 1,781,907 | ||||||
Zhejiang Chint Electrics Co. Ltd., Class A | 351,568 | 1,356,440 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H | 1,287,000 | 4,500,260 | ||||||
24,152,838 | ||||||||
Electronic Equipment, Instruments & Components — 1.7% | ||||||||
AAC Technologies Holdings Inc.(b) | 1,755,000 | 11,496,494 | ||||||
AVIC Jonhon Optronic Technology Co. Ltd., Class A | 151,198 | 849,843 | ||||||
BOE Technology Group Co. Ltd., Class A | 4,836,000 | 3,389,946 | ||||||
Chaozhou Three-Circle Group Co. Ltd., Class A | 273,000 | 929,501 | ||||||
China Railway Signal & Communication Corp. Ltd.,Class H(c) | 3,510,000 | 1,801,605 | ||||||
Foxconn Industrial Internet Co. Ltd., Class A | 586,196 | 1,432,324 | ||||||
GoerTek Inc., Class A | 468,000 | 1,490,996 | ||||||
Hangzhou Hikvision Digital Technology Co. Ltd.,Class A | 1,326,014 | 6,639,365 | ||||||
Kingboard Holdings Ltd. | 1,560,000 | 4,123,674 | ||||||
Kingboard Laminates Holdings Ltd. | 2,535,000 | 2,527,502 | ||||||
Lens Technology Co. Ltd., Class A | 349,988 | 974,831 | ||||||
Lingyi iTech Guangdong Co., Class A(a) | 819,000 | 1,327,468 | ||||||
Luxshare Precision Industry Co. Ltd., Class A | 739,760 | 5,058,586 | ||||||
NAURA Technology Group Co. Ltd., Class A | 78,000 | 1,651,566 | ||||||
OFILM Group Co. Ltd., Class A(a) | 390,000 | 1,032,159 | ||||||
Shengyi Technology Co. Ltd., Class A | 351,000 | 1,549,076 | ||||||
Shennan Circuits Co. Ltd., Class A | 39,000 | 1,158,139 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Sunny Optical Technology Group Co. Ltd | 1,638,000 | $ | 25,474,699 | |||||
Suzhou Dongshan Precision Manufacturing Co. Ltd.,Class A. | 234,000 | 947,355 | ||||||
Tianma Microelectronics Co. Ltd., Class A | 346,199 | 802,327 | ||||||
Unisplendour Corp. Ltd., Class A | 234,000 | 1,520,454 | ||||||
Universal Scientific Industrial Shanghai Co. Ltd.,Class A.. | 227,200 | 700,107 | ||||||
Wingtech Technology Co. Ltd., Class A(a) | 117,000 | 2,332,736 | ||||||
Wuhan Guide Infrared Co. Ltd., Class A. | 117,000 | 793,870 | ||||||
WUS Printed Circuit Kunshan Co. Ltd., Class A | 268,199 | 1,001,401 | ||||||
Wuxi Lead Intelligent Equipment Co. Ltd., Class A. | 112,198 | 901,250 | ||||||
Zhejiang Dahua Technology Co. Ltd., Class A | 468,000 | 1,297,508 | ||||||
83,204,782 | ||||||||
Energy Equipment & Services — 0.1% | ||||||||
China Oilfield Services Ltd., Class H. . | 3,268,000 | 4,193,480 | ||||||
Offshore Oil Engineering Co. Ltd., Class A | 619,198 | 514,655 | ||||||
Yantai Jereh Oilfield Services Group Co. Ltd., Class A | 154,251 | 763,509 | ||||||
5,471,644 | ||||||||
Entertainment — 1.6% | ||||||||
Alibaba Pictures Group Ltd.(a)(b) | 35,970,000 | 4,846,434 | ||||||
Beijing Enlight Media Co. Ltd., Class A | 424,198 | 657,822 | ||||||
Giant Network Group Co. Ltd., Class A | 265,776 | 722,023 | ||||||
HUYA Inc., ADR(a)(b) | 142,350 | 2,819,953 | ||||||
iQIYI Inc., ADR(a)(b) | 294,840 | 6,613,261 | ||||||
Mango Excellent Media Co. Ltd., Class A(a) | 208,080 | 1,311,849 | ||||||
NetEase Inc., ADR | 163,020 | 51,956,104 | ||||||
Perfect World Co. Ltd., Class A | 195,000 | 1,424,101 | ||||||
Tencent Music Entertainment Group, ADR(a)(b) . . | 217,230 | 2,635,000 | ||||||
Wanda Film Holding Co. Ltd., Class A(a) | 307,195 | 711,934 | ||||||
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A | 312,000 | 1,511,304 | ||||||
75,209,785 | ||||||||
Food & Staples Retailing — 0.2% | ||||||||
Sun Art Retail Group Ltd | 5,655,000 | 7,227,440 | ||||||
Yifeng Pharmacy Chain Co. Ltd., Class A | 73,194 | 855,476 | ||||||
Yonghui Superstores Co. Ltd., Class A | 1,443,034 | 1,775,356 | ||||||
9,858,272 | ||||||||
Food Products — 1.8% | ||||||||
Angel Yeast Co. Ltd., Class A | 112,124 | 465,165 | ||||||
Beijing Dabeinong Technology Group Co. Ltd., Class A . | 585,000 | 573,267 | ||||||
China Agri-Industries Holdings Ltd | 5,070,000 | 2,751,952 | ||||||
China Huishan Dairy Holdings Co. Ltd.(a)(d). | 1,366,667 | 2,630 | ||||||
China Mengniu Dairy Co. Ltd. | 6,317,000 | 22,656,104 | ||||||
Chongqing Fuling Zhacai Group Co. Ltd., Class A | 156,000 | 613,493 | ||||||
Dali Foods Group Co. Ltd.(c) | 5,070,000 | 3,350,485 | ||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A | 306,391 | 4,364,741 | ||||||
Fujian Sunner Development Co. Ltd., Class A | 156,000 | 484,055 | ||||||
Guangdong Haid Group Co. Ltd., Class A | 229,097 | 1,120,872 | ||||||
Henan Shuanghui Investment & Development Co. Ltd.,Class A | 397,708 | 1,934,433 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd., Class A | 897,025 | 3,709,907 | ||||||
Jiangxi Zhengbang Technology Co. Ltd., Class A | 351,000 | 759,223 | ||||||
Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd., Class A | 117,000 | 632,686 | ||||||
Muyuan Foodstuff Co. Ltd., Class A | 273,000 | 4,549,870 | ||||||
New Hope Liuhe Co. Ltd., Class A | 624,099 | 2,160,624 | ||||||
Tech-Bank Food Co. Ltd., Class A(a | 195,000 | 271,988 | ||||||
Tingyi Cayman Islands Holding Corp. | 4,680,000 | 8,515,588 | ||||||
Tongwei Co. Ltd., Class A | 580,199 | 1,431,781 |
S c h e d u l e o f I n v e s t m e n t s | 21 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Uni-President China Holdings Ltd. | 3,120,000 | $ | 3,218,868 | |||||
Want Want China Holdings Ltd.. | 11,700,000 | 9,038,053 | ||||||
Wens Foodstuffs Group Co. Ltd., Class A | 741,097 | 3,448,812 | ||||||
Yihai International Holding Ltd. | 1,205,000 | 8,063,691 | ||||||
84,118,288 | ||||||||
Gas Utilities — 1.2% | ||||||||
Beijing Enterprises Holdings Ltd. | 1,170,000 | 4,939,401 | ||||||
China Gas Holdings Ltd. | 4,212,000 | 15,403,725 | ||||||
China Resources Gas Group Ltd. | 2,340,000 | 11,680,408 | ||||||
ENN Energy Holdings Ltd. | 1,833,000 | 20,310,347 | ||||||
Kunlun Energy Co. Ltd. | 7,800,000 | 5,444,851 | ||||||
Towngas China Co. Ltd. | 2,730,000 | 1,583,411 | ||||||
59,362,143 | ||||||||
Health Care Equipment & Supplies — 0.3% | ||||||||
Autobio Diagnostics Co. Ltd., Class A | 34,197 | 587,300 | ||||||
Jafron Biomedical Co. Ltd., Class A | 78,000 | 1,007,834 | ||||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.,Class A | 138,500 | 688,121 | ||||||
Lepu Medical Technology Beijing Co. Ltd., Class A | 273,500 | 1,342,029 | ||||||
Ovctek China Inc., Class A | 78,000 | 629,338 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd.,Class H | 5,048,000 | 6,503,477 | ||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd.,Class A . | 117,095 | 4,003,563 | ||||||
14,761,662 | ||||||||
Health Care Providers & Services — 0.4% | ||||||||
Aier Eye Hospital Group Co. Ltd., Class A | 463,192 | 2,650,522 | ||||||
Guangzhou Kingmed Diagnostics Group Co. Ltd.,Class A | 73,194 | 566,688 | ||||||
Huadong Medicine Co. Ltd., Class A | 263,580 | 727,747 | ||||||
Jointown Pharmaceutical Group Co. Ltd., Class A | 312,000 | 723,516 | ||||||
Meinian Onehealth Healthcare Holdings Co. Ltd.,Class A | 546,681 | 1,029,983 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class A | 351,058 | 937,635 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H. | 1,950,000 | 3,568,179 | ||||||
Sinopharm Group Co. Ltd., Class H | 2,808,000 | 8,665,721 | ||||||
Topchoice Medical Corp., Class A(a) | 39,000 | 580,743 | ||||||
19,450,734 | ||||||||
Health Care Technology — 0.5% | ||||||||
Alibaba Health Information Technology Ltd.(a)(b) | 8,580,000 | 16,448,656 | ||||||
Ping An Healthcare and Technology Co. Ltd.(a)(c) | 741,000 | 7,240,702 | ||||||
Winning Health Technology Group Co. Ltd., Class A | 268,197 | 986,814 | ||||||
24,676,172 | ||||||||
Hotels, Restaurants & Leisure — 1.2% | ||||||||
Haidilao International Holding Ltd.(b)(c) | 780,000 | 3,187,840 | ||||||
Huazhu Group Ltd., ADR(b) | 306,930 | 10,358,888 | ||||||
Luckin Coffee Inc., ADR(a) | 190,320 | 7,529,059 | ||||||
Shenzhen Overseas Chinese Town Co. Ltd., Class A | 1,328,438 | 1,240,980 | ||||||
Songcheng Performance Development Co. Ltd.,Class A | 227,654 | 898,214 | ||||||
Yum China Holdings Inc. | 815,107 | 35,693,536 | ||||||
58,908,517 | ||||||||
Household Durables — 0.4% | ||||||||
Gree Electric Appliances Inc. of Zhuhai, Class A | 429,016 | 3,633,336 | ||||||
Haier Electronics Group Co. Ltd. | 2,730,000 | 7,811,961 | ||||||
Haier Smart Home Co. Ltd., Class A | 890,646 | 2,168,578 | ||||||
Hangzhou Robam Appliances Co. Ltd., Class A | 156,200 | 693,160 | ||||||
NavInfo Co. Ltd., Class A | 312,000 | 764,133 |
Security | Shares | Value | ||||||
Household Durables (continued) | ||||||||
Oppein Home Group Inc., Class A | 39,000 | $ | 614,609 | |||||
Suofeiya Home Collection Co. Ltd., Class A | 195,000 | 525,843 | ||||||
TCL Technology Group Corp., Class A . | 1,837,600 | 1,545,748 | ||||||
Zhejiang Supor Co. Ltd., Class A | 73,196 | 769,112 | ||||||
18,526,480 | ||||||||
Independent Power and Renewable Electricity Producers — 0.7% | ||||||||
CGN Power Co. Ltd., Class H(c) | 24,570,000 | 5,990,338 | ||||||
China Longyuan Power Group Corp. Ltd., Class H . | 7,410,000 | 3,879,457 | ||||||
China National Nuclear Power Co. Ltd., Class A. | 2,067,060 | 1,357,301 | ||||||
China Power International Development Ltd | 10,140,000 | 1,886,681 | ||||||
China Resources Power Holdings Co. Ltd. | 4,680,000 | 5,566,960 | ||||||
China Yangtze Power Co. Ltd., Class A . | 2,769,076 | 6,746,211 | ||||||
Datang International Power Generation Co. Ltd.,Class H. . | 7,020,000 | 1,098,979 | ||||||
GD Power Development Co. Ltd., Class A | 3,087,100 | 927,429 | ||||||
Huadian Power International Corp. Ltd., Class A | 975,000 | 460,287 | ||||||
Huadian Power International Corp. Ltd., Class H | 3,900,000 | 1,176,048 | ||||||
Huaneng Power International Inc., Class A | 1,012,800 | 680,976 | ||||||
Huaneng Power International Inc., Class H. | 7,800,000 | 3,142,800 | ||||||
SDIC Power Holdings Co. Ltd., Class A | 1,014,096 | 1,096,759 | ||||||
Shenergy Co. Ltd., Class A | 817,250 | 616,135 | ||||||
Shenzhen Energy Group Co. Ltd., Class A . | 741,000 | 575,610 | ||||||
Sichuan Chuantou Energy Co. Ltd., Class A | 660,562 | 864,660 | ||||||
36,066,631 | ||||||||
Industrial Conglomerates — 0.5% | ||||||||
CITIC Ltd | 13,650,000 | 15,151,000 | ||||||
Fosun International Ltd. | 6,045,000 | 7,702,613 | ||||||
Shanghai Industrial Holdings Ltd.. | 1,170,000 | 2,065,841 | ||||||
24,919,454 | ||||||||
Insurance — 5.6% | ||||||||
China Life Insurance Co. Ltd., Class A | 390,000 | 1,643,086 | ||||||
China Life Insurance Co. Ltd., Class H | 16,770,000 | 39,294,012 | ||||||
China Pacific Insurance Group Co. Ltd., Class A | 897,047 | 4,092,419 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 6,006,000 | 19,768,114 | ||||||
China Reinsurance Group Corp., Class H . | 13,650,000 | 1,856,654 | ||||||
China Taiping Insurance Holdings Co. Ltd.(b) . | 3,666,124 | 7,489,326 | ||||||
Hubei Biocause Pharmaceutical Co. Ltd., Class A | 741,000 | 631,793 | ||||||
New China Life Insurance Co. Ltd., Class A | 309,797 | 1,958,003 | ||||||
New China Life Insurance Co. Ltd., Class H | 1,872,000 | 7,122,346 | ||||||
People's Insurance Co. Group of China Ltd. (The),Class A . | 819,000 | 793,201 | ||||||
People's Insurance Co. Group of China Ltd. (The),Class H . | 18,330,000 | 6,491,784 | ||||||
PICC Property & Casualty Co. Ltd., Class H . | 15,600,462 | 16,154,873 | ||||||
Ping An Insurance Group Co. of China Ltd., Class A . | 1,521,056 | 16,911,744 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H. | 12,870,000 | 143,100,006 | ||||||
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(c). . | 741,000 | 3,118,779 | ||||||
270,426,140 | ||||||||
Interactive Media & Services — 16.2% | ||||||||
58.com Inc., ADR(a) | 220,350 | 12,156,709 | ||||||
Autohome Inc., ADR(a) | 134,940 | 10,480,790 | ||||||
Baidu Inc., ADR(a) . | 629,850 | 75,569,403 | ||||||
JOYY Inc.(a)(b) . | 131,820 | 7,114,325 | ||||||
Momo Inc., ADR | 348,660 | 9,804,319 | ||||||
SINA Corp.(a)(b) . | 145,470 | 4,764,143 | ||||||
Tencent Holdings Ltd | 13,182,000 | 652,921,770 | ||||||
Weibo Corp., ADR(a)(b) | 125,970 | 5,308,376 | ||||||
778,119,835 |
22 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Internet & Direct Marketing Retail — 20.7% | ||||||||
Alibaba Group Holding Ltd., ADR(a) | 3,996,330 | $ | 831,236,640 | |||||
Baozun Inc., ADR(a)(b) | 101,010 | 3,204,037 | ||||||
JD.com Inc., ADR(a) | 1,691,820 | 65,151,988 | ||||||
Meituan Dianping, Class B(a) | 2,340,000 | 29,696,460 | ||||||
Pinduoduo Inc., ADR(a)(b) | 445,770 | 15,949,651 | ||||||
Trip.com Group Ltd., ADR(a)(b) | 1,085,760 | 32,963,674 | ||||||
Vipshop Holdings Ltd., ADR(a)(b) | 1,015,950 | 13,034,638 | ||||||
991,237,088 | ||||||||
IT Services — 0.3% | ||||||||
Beijing Sinnet Technology Co. Ltd., Class A | 268,196 | 963,022 | ||||||
China TransInfo Technology Co. Ltd., Class A | 273,000 | 1,057,601 | ||||||
DHC Software Co. Ltd., Class A | 463,112 | 977,211 | ||||||
GDS Holdings Ltd., ADR(a)(b) | 141,570 | 8,206,813 | ||||||
TravelSky Technology Ltd., Class H | 2,021,000 | 3,952,245 | ||||||
Wangsu Science & Technology Co. Ltd., Class A | 429,000 | 600,828 | ||||||
15,757,720 | ||||||||
Life Sciences Tools & Services — 0.9% | ||||||||
Genscript Biotech Corp.(a) | 2,390,000 | 4,974,407 | ||||||
Hangzhou Tigermed Consulting Co. Ltd., Class A | 115,937 | 1,268,802 | ||||||
WuXi AppTec Co. Ltd., Class A | 228,336 | 3,462,507 | ||||||
WuXi AppTec Co. Ltd., Class H(c) | 351,020 | 5,175,406 | ||||||
Wuxi Biologics Cayman Inc.(a)(c) | 1,824,500 | 26,689,550 | ||||||
41,570,672 | ||||||||
Machinery — 1.3% | ||||||||
China Conch Venture Holdings Ltd. | 3,900,000 | 18,966,900 | ||||||
China International Marine Containers Group Co. Ltd.,Class A | 421,724 | 482,646 | ||||||
China Shipbuilding Industry Co. Ltd., Class A | 3,385,794 | 2,136,041 | ||||||
CRRC Corp. Ltd., Class A | 3,471,080 | 3,178,008 | ||||||
CRRC Corp. Ltd., Class H | 10,140,650 | 6,506,214 | ||||||
Haitian International Holdings Ltd. | 1,605,000 | 3,146,958 | ||||||
Hefei Meiya Optoelectronic Technology Inc., Class A | 117,000 | 603,730 | ||||||
Jiangsu Hengli Hydraulic Co. Ltd., Class A | 117,000 | 970,788 | ||||||
Sany Heavy Industry Co. Ltd., Class A | 1,248,076 | 3,112,066 | ||||||
Shenzhen Inovance Technology Co. Ltd., Class A | 263,887 | 1,068,731 | ||||||
Sinotruk Hong Kong Ltd. | 1,594,500 | 3,048,620 | ||||||
Weichai Power Co. Ltd., Class A | 856,982 | 1,756,824 | ||||||
Weichai Power Co. Ltd., Class H | 4,680,000 | 9,212,208 | ||||||
XCMG Construction Machinery Co. Ltd., Class A | 1,399,199 | 1,054,874 | ||||||
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A. . | 424,067 | 1,206,039 | ||||||
Zhengzhou Yutong Bus Co. Ltd., Class A | 346,199 | 746,857 | ||||||
Zoomlion Heavy Industry Science and Technology Co.Ltd., Class A | 820,699 | 737,316 | ||||||
Zoomlion Heavy Industry Science and Technology Co.Ltd., Class H | 2,685,600 | 2,226,211 | ||||||
60,161,031 | ||||||||
Marine — 0.1% | ||||||||
COSCO SHIPPING Development Co. Ltd., Class A | 1,911,000 | 576,837 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class A(a) | 1,131,000 | 653,664 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class H(a)(b) | 6,240,000 | 2,081,855 | ||||||
3,312,356 | ||||||||
Media — 0.1% | ||||||||
China Literature Ltd.(a)(c) | 624,000 | 2,822,515 | ||||||
Chinese Universe Publishing and Media Group Co.Ltd., Class A | 234,000 | 476,021 | ||||||
CITIC Guoan Information Industry Co. Ltd., Class A(a) . . | 702,000 | 347,475 | ||||||
Focus Media Information Technology Co. Ltd., Class A . | 1,989,038 | 1,519,479 | ||||||
NanJi E-Commerce Co. Ltd., Class A(a) | 390,000 | 545,092 |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
Oriental Pearl Group Co. Ltd., Class A | 505,287 | $ | 734,416 | |||||
6,444,998 | ||||||||
Metals & Mining — 0.9% | ||||||||
Aluminum Corp. of China Ltd., Class A(a) | 2,070,800 | 906,505 | ||||||
Aluminum Corp. of China Ltd., Class H(a) | 9,364,000 | 2,487,278 | ||||||
Angang Steel Co. Ltd., Class A | 1,012,256 | 414,159 | ||||||
Baoshan Iron & Steel Co. Ltd., Class A | 2,730,089 | 2,030,909 | ||||||
China Hongqiao Group Ltd. | 4,095,000 | 2,196,457 | ||||||
China Molybdenum Co. Ltd., Class A | 2,496,000 | 1,453,280 | ||||||
China Molybdenum Co. Ltd., Class H | 9,360,000 | 3,495,114 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd.,Class A . | 585,000 | 761,566 | ||||||
China Zhongwang Holdings Ltd. | 4,212,000 | 1,416,062 | ||||||
Ganfeng Lithium Co. Ltd., Class A | 190,195 | 1,414,314 | ||||||
Guangdong HEC Technology Holding Co. Ltd., Class A. | 463,199 | 552,642 | ||||||
Hesteel Co. Ltd., Class A | 2,262,000 | 728,091 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A. | 7,605,092 | 1,272,919 | ||||||
Jiangxi Copper Co. Ltd., Class A | 390,000 | 763,798 | ||||||
Jiangxi Copper Co. Ltd., Class H | 2,730,000 | 3,201,853 | ||||||
Maanshan Iron & Steel Co. Ltd., Class A | 2,691,000 | 1,066,360 | ||||||
Pangang Group Vanadium Titanium & Resources Co.Ltd., Class A(a) | 1,599,000 | 546,710 | ||||||
Shandong Gold Mining Co. Ltd., Class A | 390,065 | 1,892,793 | ||||||
Shandong Nanshan Aluminum Co. Ltd., Class A | 2,106,000 | 638,711 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd., Class A | 1,092,000 | 549,890 | ||||||
Tongling Nonferrous Metals Group Co. Ltd., Class A. | 2,145,000 | 632,128 | ||||||
Yintai Gold Co. Ltd., Class A . | 312,000 | 624,428 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H | 2,535,000 | 3,021,943 | ||||||
Zhejiang Huayou Cobalt Co. Ltd., Class A | 151,198 | 817,398 | ||||||
Zhongjin Gold Corp. Ltd., Class A | 468,000 | 542,972 | ||||||
Zijin Mining Group Co. Ltd., Class A . | 2,847,000 | 1,694,303 | ||||||
Zijin Mining Group Co. Ltd., Class H . | 13,260,000 | 5,955,306 | ||||||
41,077,889 | ||||||||
Oil, Gas & Consumable Fuels — 2.9% | ||||||||
China Coal Energy Co. Ltd., Class H . | 5,070,000 | 1,639,461 | ||||||
China Merchants Energy Shipping Co. Ltd., Class A . | 931,196 | 674,065 | ||||||
China Petroleum & Chemical Corp., Class A . | 3,705,088 | 2,438,186 | ||||||
China Petroleum & Chemical Corp., Class H . | 57,721,000 | 29,775,046 | ||||||
China Shenhua Energy Co. Ltd., Class A | 655,705 | 1,500,855 | ||||||
China Shenhua Energy Co. Ltd., Class H | 7,800,000 | 13,532,057 | ||||||
CNOOC Ltd. | 41,340,000 | 56,654,481 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd.,Class A . | 468,000 | 373,586 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd.,Class H . | 3,120,000 | 1,217,084 | ||||||
Guanghui Energy Co. Ltd., Class A | 1,443,000 | 586,267 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B | 2,707,000 | 1,857,002 | ||||||
PetroChina Co. Ltd., Class A . | 2,262,090 | 1,640,696 | ||||||
PetroChina Co. Ltd., Class H . | 48,360,000 | 18,740,698 | ||||||
Shaanxi Coal Industry Co. Ltd., Class A | 1,248,096 | 1,410,540 | ||||||
Shanxi Lu'an Environmental Energy Development Co.Ltd., Class A | 507,000 | 439,533 | ||||||
Shanxi Meijin Energy Co. Ltd., Class A(a) | 624,000 | 744,494 | ||||||
Yanzhou Coal Mining Co. Ltd., Class A | 505,203 | 641,062 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H | 4,000,000 | 3,033,472 | ||||||
136,898,585 | ||||||||
Paper & Forest Products — 0.1% | ||||||||
Lee & Man Paper Manufacturing Ltd. | 3,120,000 | 2,434,169 |
S c h e d u l e o f I n v e s t m e n t s | 23 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Paper & Forest Products (continued) | ||||||||
Nine Dragons Paper Holdings Ltd. | 3,900,000 | $ | 4,604,102 | |||||
7,038,271 | ||||||||
Personal Products — 0.3% | ||||||||
By-Health Co. Ltd., Class A | 273,000 | 638,544 | ||||||
Hengan International Group Co. Ltd. | 1,755,000 | 13,027,858 | ||||||
13,666,402 | ||||||||
Pharmaceuticals — 2.1% | ||||||||
Asymchem Laboratories Tianjin Co. Ltd., Class A | 37,300 | 955,578 | ||||||
Beijing Tongrentang Co. Ltd., Class A | 273,600 | 1,023,133 | ||||||
Betta Pharmaceuticals Co. Ltd., Class A | 73,198 | 845,051 | ||||||
Changchun High & New Technology Industry | ||||||||
Group Inc., Class A | 34,198 | 2,367,862 | ||||||
Chengdu Kanghong Pharmaceutical Group Co. Ltd.,Class A . | 112,199 | 531,285 | ||||||
China Medical System Holdings Ltd. | 3,094,000 | 3,811,396 | ||||||
China Resources Pharmaceutical Group Ltd.(c) | 3,900,000 | 3,393,023 | ||||||
China Resources Sanjiu Medical & Pharmaceutical Co.Ltd., Class A | 190,194 | 892,444 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. | 5,460,000 | 2,872,560 | ||||||
CSPC Pharmaceutical Group Ltd. | 10,920,000 | 24,886,174 | ||||||
Dong-E-E-Jiao Co. Ltd., Class A. . | 117,000 | 515,187 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co.Ltd., Class A | 226,795 | 1,105,391 | ||||||
Hansoh Pharmaceutical Group Co. Ltd.(a)(c) | 780,000 | 2,707,412 | ||||||
Hutchison China MediTech Ltd., ADR(a)(b) | 143,910 | 3,355,981 | ||||||
Jiangsu Hengrui Medicine Co. Ltd., Class A | 621,744 | 7,479,393 | ||||||
Joincare Pharmaceutical Group Industry Co. Ltd.,Class A | 348,562 | 570,947 | ||||||
Luye Pharma Group Ltd.(b)(c) | 2,730,000 | 1,663,983 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd.,Class A | 351,678 | 1,352,337 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd.,Class H | 1,170,000 | 3,295,436 | ||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A | 195,000 | 516,917 | ||||||
Sichuan Kelun Pharmaceutical Co. Ltd., Class A | 234,365 | 769,460 | ||||||
Sino Biopharmaceutical Ltd.(b) | 15,990,000 | 23,144,623 | ||||||
SSY Group Ltd. | 3,900,000 | 3,267,912 | ||||||
Tasly Pharmaceutical Group Co. Ltd., Class A | 312,000 | 682,006 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A | 312,000 | 508,827 | ||||||
Yunnan Baiyao Group Co. Ltd., Class A | 195,032 | 2,195,512 | ||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd.,Class A | 78,150 | 1,342,711 | ||||||
Zhejiang Conba Pharmaceutical Co. Ltd., Class A | 466,225 | 396,847 | ||||||
Zhejiang Huahai Pharmaceutical Co. Ltd., Class A(a) . | 190,188 | 567,555 | ||||||
Zhejiang NHU Co. Ltd., Class A | 346,196 | 1,193,574 | ||||||
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A | 76,906 | 475,065 | ||||||
98,685,582 | ||||||||
Professional Services — 0.1% | ||||||||
51job Inc., ADR(a)(b) | 60,060 | 4,490,686 | ||||||
Real Estate Management & Development — 5.4% | ||||||||
Agile Group Holdings Ltd. | 3,120,000 | 4,379,903 | ||||||
China Aoyuan Group Ltd. | 2,738,000 | 3,942,020 | ||||||
China Evergrande Group | 4,390,000 | 9,858,143 | ||||||
China Fortune Land Development Co. Ltd., Class A | 468,150 | 1,579,877 | ||||||
China Jinmao Holdings Group Ltd. | 12,480,000 | 9,112,119 | ||||||
China Merchants Shekou Industrial Zone Holdings Co.Ltd., Class A | 1,170,043 | 2,902,427 | ||||||
China Overseas Land & Investment Ltd. | 8,580,000 | 28,790,653 |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
China Resources Land Ltd. | 7,186,665 | $ | 33,152,695 | |||||
China Vanke Co. Ltd., Class A. . | 1,365,009 | 5,778,177 | ||||||
China Vanke Co. Ltd., Class H | 3,471,031 | 13,362,025 | ||||||
CIFI Holdings Group Co. Ltd.. . | 6,240,000 | 4,764,245 | ||||||
Country Garden Holdings Co. Ltd.(b) | 17,550,727 | 23,241,671 | ||||||
Financial Street Holdings Co. Ltd., Class A | 577,659 | 573,511 | ||||||
Gemdale Corp., Class A | 703,130 | 1,438,408 | ||||||
Greenland Holdings Corp. Ltd., Class A . | 1,406,866 | 1,175,374 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 2,808,000 | 4,352,678 | ||||||
Jiangsu Zhongnan Construction Group Co. Ltd.,Class A . | 585,000 | 694,615 | ||||||
Jinke Properties Group Co. Ltd., Class A | 859,281 | 925,637 | ||||||
Kaisa Group Holdings Ltd | 5,460,000 | 2,424,160 | ||||||
KWG Group Holdings Ltd. | 3,120,000 | 4,572,074 | ||||||
Logan Property Holdings Co. Ltd. | 3,120,000 | 5,324,744 | ||||||
Longfor Group Holdings Ltd.(c) | 4,290,000 | 19,845,183 | ||||||
Oceanwide Holdings Co. Ltd., Class A | 624,000 | 376,710 | ||||||
Poly Developments and Holdings Group Co. Ltd.,Class A . | 1,716,075 | 3,974,601 | ||||||
RiseSun Real Estate Development Co. Ltd., Class A | 742,330 | 909,036 | ||||||
Seazen Group Ltd(b) | 4,680,000 | 4,810,286 | ||||||
Seazen Holdings Co. Ltd., Class A | 312,464 | 1,434,879 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | 2,679,932 | 2,122,506 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co.Ltd., Class A | 234,000 | 431,498 | ||||||
Shenzhen Investment Ltd. | 7,800,000 | 2,622,337 | ||||||
Shimao Property Holdings Ltd | 2,730,000 | 9,773,709 | ||||||
Shui On Land Ltd. . | 9,360,000 | 1,861,659 | ||||||
Sino-Ocean Group Holding Ltd. | 7,605,000 | 2,761,711 | ||||||
SOHO China Ltd. | 5,070,000 | 1,834,635 | ||||||
Sunac China Holdings Ltd. . | 5,554,000 | 30,289,168 | ||||||
Wharf Holdings Ltd. (The) | 2,340,000 | 4,936,398 | ||||||
Xinhu Zhongbao Co. Ltd., Class A | 1,248,000 | 562,387 | ||||||
Yango Group Co. Ltd., Class A | 624,000 | 715,035 | ||||||
Yuexiu Property Co. Ltd | 16,380,000 | 3,341,978 | ||||||
Yuzhou Properties Co. Ltd. | 4,290,000 | 2,102,874 | ||||||
Zhenro Properties Group Ltd . | 3,510,000 | 2,283,535 | ||||||
259,335,281 | ||||||||
Road & Rail — 0.1% | ||||||||
Daqin Railway Co. Ltd., Class A | 2,067,000 | 2,093,554 | ||||||
Guangshen Railway Co. Ltd., Class A | 1,435,792 | 529,934 | ||||||
2,623,488 | ||||||||
Semiconductors & Semiconductor Equipment — 0.8% | ||||||||
GCL System Integration Technology Co. Ltd.,Class A(a). | 700,245 | 552,967 | ||||||
Gigadevice Semiconductor Beijing Inc., Class A . | 34,198 | 1,776,092 | ||||||
Hangzhou Silan Microelectronics Co. Ltd., Class A | 195,000 | 479,536 | ||||||
Hua Hong Semiconductor Ltd.(b)(c). | 1,170,000 | 2,546,269 | ||||||
LONGi Green Energy Technology Co. Ltd., Class A . | 541,104 | 2,376,455 | ||||||
Sanan Optoelectronics Co. Ltd., Class A . | 585,055 | 2,063,118 | ||||||
Semiconductor Manufacturing International Corp.(a)(b) . . | 6,825,300 | 13,224,864 | ||||||
Shenzhen Goodix Technology Co. Ltd., Class A . | 50,600 | 2,242,985 | ||||||
Tianjin Zhonghuan Semiconductor Co. Ltd., Class A. | 424,198 | 1,066,837 | ||||||
Unigroup Guoxin Microelectronics Co. Ltd., Class A . | 117,000 | 969,951 | ||||||
Visionox Technology Inc., Class A(a) . | 229,195 | 436,081 | ||||||
Will Semiconductor Ltd., Class A . | 78,000 | 1,944,030 | ||||||
Xinyi Solar Holdings Ltd | 8,720,000 | 6,903,895 | ||||||
36,583,080 |
24 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software — 0.6% | ||||||||
360 Security Technology Inc., Class A | 195,000 | $ | 623,480 | |||||
Aisino Corp., Class A | 312,598 | 1,055,379 | ||||||
Beijing Shiji Information Technology Co. Ltd., Class A. | 148,789 | 826,085 | ||||||
China National Software & Service Co. Ltd., Class A | 78,000 | 951,037 | ||||||
Glodon Co. Ltd., Class A | 190,198 | 1,216,525 | ||||||
Hundsun Technologies Inc., Class A | 109,797 | 1,510,883 | ||||||
Iflytek Co. Ltd., Class A | 349,759 | 1,930,875 | ||||||
Kingdee International Software Group Co. Ltd.(b) | 5,460,000 | 6,985,224 | ||||||
Kingsoft Corp. Ltd.(a)(b) | 1,950,000 | 6,305,618 | ||||||
Sangfor Technologies Inc., Class A | 39,000 | 1,111,385 | ||||||
Shanghai 2345 Network Holding Group Co. Ltd.,Class A | 1,209,000 | 546,542 | ||||||
Shanghai Baosight Software Co. Ltd., Class A | 156,000 | 1,012,967 | ||||||
Shenzhen Kingdom Sci-Tech Co. Ltd., Class A(a) | 117,000 | 323,708 | ||||||
Venustech Group Inc., Class A | 151,171 | 899,431 | ||||||
Yonyou Network Technology Co. Ltd., Class A | 385,198 | 2,538,156 | ||||||
27,837,295 | ||||||||
Specialty Retail — 0.4% | ||||||||
China Grand Automotive Services Group Co. Ltd.,Class A | 1,289,700 | 760,145 | ||||||
China International Travel Service Corp. Ltd., Class A | 270,589 | 3,038,716 | ||||||
GOME Retail Holdings Ltd.(a)(b) | 24,180,000 | 2,482,212 | ||||||
HLA Corp. Ltd., Class A | 546,000 | 531,925 | ||||||
Suning.com Co. Ltd., Class A | 1,443,061 | 1,915,769 | ||||||
Topsports International Holdings Ltd.(c) | 2,730,000 | 3,156,312 | ||||||
Zhongsheng Group Holdings Ltd.(b) | 1,365,000 | 5,193,377 | ||||||
17,078,456 | ||||||||
Technology Hardware, Storage & Peripherals — 1.1% | ||||||||
China Greatwall Technology Group Co. Ltd., Class A | 429,000 | 858,589 | ||||||
Dawning Information Industry Co. Ltd., Class A | 151,196 | 977,231 | ||||||
GRG Banking Equipment Co. Ltd., Class A | 390,000 | 526,680 | ||||||
Inspur Electronic Information Industry Co. Ltd., Class A. | 195,000 | 1,173,035 | ||||||
Legend Holdings Corp., Class H(c) | 897,000 | 1,542,374 | ||||||
Lenovo Group Ltd. | 16,380,000 | 10,110,008 | ||||||
Ninestar Corp., Class A | 156,000 | 927,939 | ||||||
Xiaomi Corp., Class B(a)(c) | 23,946,000 | 38,593,588 | ||||||
54,709,444 | ||||||||
Textiles, Apparel & Luxury Goods — 1.2% | ||||||||
ANTA Sports Products Ltd. | 2,401,000 | 19,302,154 | ||||||
Bosideng International Holdings Ltd.(b) | 7,800,000 | 2,272,025 | ||||||
Li Ning Co. Ltd. | 4,485,000 | 11,798,012 | ||||||
Shenzhou International Group Holdings Ltd. | 1,755,000 | 21,562,963 | ||||||
Zhejiang Semir Garment Co. Ltd., Class A | 351,000 | 390,156 | ||||||
55,325,310 | ||||||||
Trading Companies & Distributors — 0.1% | ||||||||
BOC Aviation Ltd.(c) | 507,000 | 4,401,172 | ||||||
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.,Class A | 156,000 | 327,613 | ||||||
Sinochem International Corp., Class A | 702,000 | 580,464 | ||||||
Xiamen C & D Inc., Class A | 585,000 | 641,891 | ||||||
5,951,140 | ||||||||
Transportation Infrastructure — 0.6% | ||||||||
Beijing Capital International Airport Co. Ltd., Class H | 3,900,000 | 3,042,711 | ||||||
China Merchants Port Holdings Co. Ltd. | 3,120,000 | 4,588,088 | ||||||
COSCO SHIPPING Ports Ltd. | 3,900,000 | 2,597,314 | ||||||
Guangzhou Baiyun International Airport Co. Ltd., | ||||||||
Class A | 307,197 | 680,297 |
Security | Shares | Value | ||||||
Transportation Infrastructure (continued) | ||||||||
Jiangsu Expressway Co. Ltd., Class H | 3,120,000 | $ | 3,607,214 | |||||
Ningbo Zhoushan Port Co. Ltd., Class A | 1,518,567 | 714,727 | ||||||
Shanghai International Airport Co. Ltd., Class A | 156,099 | 1,467,378 | ||||||
Shanghai International Port Group Co. Ltd., Class A | 1,365,077 | 886,591 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 1,560,000 | 1,887,682 | ||||||
Shenzhen International Holdings Ltd | 2,340,000 | 4,479,992 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 3,900,000 | 2,947,627 | ||||||
26,899,621 | ||||||||
Water Utilities — 0.4% | ||||||||
Beijing Enterprises Water Group Ltd. | 11,700,000 | 5,434,842 | ||||||
Guangdong Investment Ltd. | 7,020,000 | 13,187,751 | ||||||
18,622,593 | ||||||||
Wireless Telecommunication Services — 2.4% | ||||||||
China Mobile Ltd . | 14,040,000 | 110,438,403 | ||||||
China United Network Communications Ltd., Class A | 4,360,795 | 3,418,666 | ||||||
113,857,069 | ||||||||
Total Common Stocks — 99.9% | ||||||||
(Cost: $4,221,915,125) | 4,785,405,507 | |||||||
Rights | ||||||||
Technology Hardware, Storage & Peripherals — 0.0% | ||||||||
Legend Holdings Corp., (Expires 03/20/20)(a) | 82,492 | 0 | (e) | |||||
Total Rights — 0.0% | ||||||||
(Cost: $0) | 0 | (e) | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 3.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h) | 170,884,413 | 171,004,033 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares,1.52%(f)(g) | 2,786,000 | 2,786,000 | ||||||
173,790,033 | ||||||||
Total Short-Term Investments — 3.6% | ||||||||
(Cost: $173,717,546) | 173,790,033 | |||||||
Total Investments in Securities — 103.5% | 4,959,195,540 | |||||||
(Cost: $4,395,632,671) | (168,520,392 | ) | ||||||
Other Assets, Less Liabilities — (3.5)% | ||||||||
Net Assets — 100.0% | $ | 4,790,675,148 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Rounds to less than $1. | |
(f) | Affiliate of the Fund. |
(g) | Annualized 7-day yield as of period-end. |
(h) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S c h e d u l e o f I n v e s t m e n t s | 25 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 120,100,406 | 50,784,007 | 170,884,413 | $ | 171,004,033 | $ | 1,247,028 | (b) | $ | 4,266 | $ | 26,625 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,740,000 | 1,046,000 | 2,786,000 | 2,786,000 | 32,069 | — | — | |||||||||||||||||||||
$ | 173,790,033 | $ | 1,279,097 | $ | 4,266 | $ | 26,625 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
Hang Seng China Enterprises Index | 63 | 03/30/20 | $ | 4,187 | $ | (144,042 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 144,042 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (100,299 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (131,842 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments | ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 5,096,410 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
26 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 4,785,402,877 | $ | — | $ | 2,630 | $ | 4,785,405,507 | ||||||||
Rights | — | 0 | (a) | — | 0 | (a) | ||||||||||
Money Market Funds | 173,790,033 | — | — | 173,790,033 | ||||||||||||
$ | 4,959,192,910 | $ | 0 | (a) | $ | 2,630 | $ | 4,959,195,540 | ||||||||
Derivative financial instruments(b) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (144,042 | ) | $ | — | $ | — | $ | (144,042 | ) |
(a) | Rounds to less than $1. |
(b) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 27 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.2% | ||||||||
Shandong Airlines Co. Ltd., Class B | 92,500 | $ | 95,669 | |||||
Auto Components — 1.6% | ||||||||
Chaowei Power Holdings Ltd. | 325,000 | 102,591 | ||||||
China First Capital Group Ltd.(a) | 2,550,000 | 70,351 | ||||||
Prinx Chengshan Cayman Holding Ltd. | 100,000 | 103,041 | ||||||
Tianneng Power International Ltd. | 450,000 | 333,181 | ||||||
Xingda International Holdings Ltd. | 550,000 | 163,030 | ||||||
772,194 | ||||||||
Automobiles — 0.6% | ||||||||
Qingling Motors Co. Ltd., Class H | 500,000 | 109,071 | ||||||
Yadea Group Holdings Ltd.(b)(c) | 700,000 | 189,528 | ||||||
298,599 | ||||||||
Beverages — 0.0% | ||||||||
China Huiyuan Juice Group Ltd.(a)(d) | 81,000 | 11,225 | ||||||
Dynasty Fine Wines Group Ltd.(a) | 308,000 | 11,659 | ||||||
22,884 | ||||||||
Biotechnology — 0.8% | ||||||||
Ascletis Pharma Inc.(a)(b)(c) | 200,000 | 100,089 | ||||||
Essex Bio-Technology Ltd. | 200,000 | 141,152 | ||||||
Shanghai Haohai Biological Technology Co. Ltd.,Class H(a)(b) | 27,500 | 140,269 | ||||||
381,510 | ||||||||
Building Products — 0.2% | ||||||||
China Fangda Group Co. Ltd., Class B | 232,450 | 82,325 | ||||||
Capital Markets — 0.3% | ||||||||
Shanghai Greencourt Investment Group Co. Ltd.,Class B(a) | 227,524 | 82,819 | ||||||
Yintech Investment Holdings Ltd., ADR(a)(c) | 13,975 | 86,645 | ||||||
169,464 | ||||||||
Chemicals — 3.6% | ||||||||
China BlueChemical Ltd., Class H | 1,200,000 | 227,895 | ||||||
China Longevity Group Co. Ltd.(a)(d) | 96,000 | — | ||||||
China Lumena New Materials Corp.(a)(c)(d) | 21,700 | — | ||||||
China XLX Fertiliser Ltd. | 275,000 | 84,691 | ||||||
Dongyue Group Ltd. | 775,000 | 402,763 | ||||||
Fufeng Group Ltd. | 1,025,600 | 397,445 | ||||||
Huabao International Holdings Ltd. | 525,000 | 207,492 | ||||||
Shanghai Chlor-Alkali Chemical Co. Ltd., Class B | 265,000 | 146,810 | ||||||
Silver Grant International Holdings Group Ltd.(a) | 850,000 | 123,251 | ||||||
Sinofert Holdings Ltd. | 1,400,000 | 140,125 | ||||||
Tsaker Chemical Group Ltd.(b) | 262,500 | 56,926 | ||||||
1,787,398 | ||||||||
Commercial Services & Supplies — 0.9% | ||||||||
CT Environmental Group Ltd.(a)(d) | 600,000 | 20,018 | ||||||
Dynagreen Environmental Protection Group Co. Ltd., | ||||||||
Class H | 250,000 | 106,826 | ||||||
Ever Sunshine Lifestyle Services Group Ltd. | 300,000 | 302,962 | ||||||
429,806 | ||||||||
Construction & Engineering — 0.3% | ||||||||
Hebei Construction Group Corp. Ltd. | 212,500 | 126,796 | ||||||
Construction Materials — 1.5% | ||||||||
Asia Cement China Holdings Corp. | 312,500 | 412,226 | ||||||
China Shanshui Cement Group Ltd.(a) | 108,000 | 37,973 |
Security | Shares | Value | ||||||
Construction Materials (continued) | ||||||||
West China Cement Ltd. | 1,650,000 | $ | 266,776 | |||||
716,975 | ||||||||
Consumer Finance — 1.9% | ||||||||
360 Finance Inc., ADR(a)(c) | 29,125 | 243,485 | ||||||
FinVolution Group(c) | 53,075 | 105,089 | ||||||
Jianpu Technology Inc., ADR(a)(c) | 39,050 | 39,050 | ||||||
Qudian Inc., ADR(a) | 102,375 | 268,222 | ||||||
X Financial, ADR. . | 36,725 | 60,596 | ||||||
Yixin Group Ltd.(a)(b)(c) | 1,087,500 | 234,440 | ||||||
950,882 | ||||||||
Containers & Packaging — 0.3% | ||||||||
CPMC Holdings Ltd. | 400,000 | 152,957 | ||||||
Youyuan International Holdings Ltd.(a)(c)(d | 120,000 | 3,403 | ||||||
156,360 | ||||||||
Diversified Consumer Services — 5.9% | ||||||||
Bright Scholar Education Holdings Ltd., ADR | 14,725 | 119,567 | ||||||
China Maple Leaf Educational Systems Ltd.. | 1,000,000 | 349,029 | ||||||
China New Higher Education Group Ltd.(b)(c) | 350,000 | 119,016 | ||||||
China Xinhua Education Group Ltd.(b) | 275,000 | 77,986 | ||||||
China Yuhua Education Corp Ltd.(b)(c) | 750,000 | 580,325 | ||||||
Fu Shou Yuan International Group Ltd. | 600,000 | 512,765 | ||||||
Hope Education Group Co. Ltd.(b) | 1,100,000 | 242,780 | ||||||
Minsheng Education Group Co. Ltd.(a)(b) | 550,000 | 91,043 | ||||||
OneSmart International Education Group Ltd., ADR(a)(c) | 48,700 | 264,928 | ||||||
RISE Education Cayman Ltd., ADR(a)(c) | 15,550 | 86,147 | ||||||
Scholar Education Group | 100,000 | 133,196 | ||||||
Tianli Education International Holdings Ltd. | 350,000 | 182,342 | ||||||
Wisdom Education International Holdings Co. Ltd . | 400,000 | 152,443 | ||||||
2,911,567 | ||||||||
Diversified Financial Services — 0.4% | ||||||||
National Agricultural Holdings Ltd.(a)(c)(d) | 126,000 | 7,761 | ||||||
Sheng Ye Capital Ltd. . | 200,000 | 179,134 | ||||||
186,895 | ||||||||
Electrical Equipment — 1.1% | ||||||||
China Fiber Optic Network System Group Ltd.(a)(d) | 181,600 | — | ||||||
China High Speed Transmission Equipment Group | ||||||||
Co. Ltd.(c) | 275,000 | 174,675 | ||||||
Fullshare Holdings Ltd.(a) | 4,187,500 | 68,242 | ||||||
Hangzhou Steam Turbine Co. Ltd., Class B | 185,058 | 197,809 | ||||||
Harbin Electric Co. Ltd., Class H(a) | 450,000 | 121,262 | ||||||
Trony Solar Holdings Co. Ltd.(a)(d) . | 216,000 | — | ||||||
561,988 | ||||||||
Electronic Equipment, Instruments & Components — 2.5% | ||||||||
Anxin-China Holdings Ltd.(a)(d) . | 672,000 | 1 | ||||||
AVIC International Holdings Ltd., Class H(a)(c) | 201,184 | 214,788 | ||||||
Camsing International Holding Ltd.(a)(d). | 112,000 | 14,170 | ||||||
Huami Corp., ADR(a)(c) . | 15,050 | 213,710 | ||||||
PAX Global Technology Ltd | 525,000 | 260,713 | ||||||
Tongda Group Holdings Ltd | 2,500,000 | 237,391 | ||||||
Truly International Holdings Ltd.(a) | 1,100,000 | 148,209 | ||||||
Wasion Holdings Ltd.. . | 350,000 | 141,472 | ||||||
1,230,454 | ||||||||
Energy Equipment & Services — 0.5% | ||||||||
Anton Oilfield Services Group/Hong Kong(c) | 1,000,000 | 94,956 | ||||||
Honghua Group Ltd.(a) . | 1,825,000 | 97,186 | ||||||
Wison Engineering Services Co. Ltd.. . | 673,000 | 78,587 | ||||||
270,729 |
28 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Entertainment — 2.4% | ||||||||
Changyou.com Ltd., ADR | 12,075 | $ | 129,927 | |||||
FingerTango Inc.(a) | 50,000 | 4,042 | ||||||
Glory Sun Land Group Ltd.(a) | 750,000 | 71,217 | ||||||
IGG Inc.(c) | 575,000 | 418,354 | ||||||
IMAX China Holding Inc.(b) | 80,000 | 149,877 | ||||||
NetDragon Websoft Holdings Ltd. | 137,500 | 379,345 | ||||||
SMI Holdings Group Ltd.(a)(d) | 267,200 | 52,116 | ||||||
1,204,878 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 1.4% | ||||||||
Yuexiu REIT | 1,050,000 | 673,677 | ||||||
Food Products — 1.7% | ||||||||
China Foods Ltd. | 550,000 | 203,258 | ||||||
China Modern Dairy Holdings Ltd.(a) | 1,662,000 | 200,471 | ||||||
COFCO Meat Holdings Ltd.(a) | 925,000 | 231,456 | ||||||
Zhou Hei Ya International Holdings Co. Ltd.(b)(c) | 400,000 | 211,984 | ||||||
847,169 | ||||||||
Gas Utilities — 0.5% | ||||||||
Beijing Gas Blue Sky Holdings Ltd.(a)(c) | 4,000,000 | 97,523 | ||||||
China Tian Lun Gas Holdings Ltd. | 200,000 | 163,735 | ||||||
261,258 | ||||||||
Health Care Equipment & Supplies — 1.9% | ||||||||
AK Medical Holdings Ltd.(b) | 200,000 | 413,702 | ||||||
Beijing Chunlizhengda Medical Instruments Co. Ltd.,Class H | 20,000 | 200,563 | ||||||
Lifetech Scientific Corp.(a) | 1,600,000 | 314,126 | ||||||
928,391 | ||||||||
Health Care Providers & Services — 1.8% | ||||||||
China Resources Medical Holdings Co. Ltd. | 562,500 | 291,606 | ||||||
Genertec Universal Medical Group Co. Ltd.(b) | 687,500 | 478,151 | ||||||
IVD Medical Holding Ltd.(a) | 264,000 | 127,036 | ||||||
896,793 | ||||||||
Hotels, Restaurants & Leisure — 1.6% | ||||||||
500.com Ltd., ADR(a)(c) | 13,800 | 74,382 | ||||||
Ajisen China Holdings Ltd. | 325,000 | 82,157 | ||||||
CA Cultural Technology Group Ltd. | 275,000 | 74,457 | ||||||
China Travel International Investment Hong Kong Ltd. | 1,500,000 | 236,749 | ||||||
Haichang Ocean Park Holdings Ltd.(a)(b) | 800,000 | 78,018 | ||||||
Huangshan Tourism Development Co. Ltd., Class B | 142,500 | 113,003 | ||||||
Shanghai Jin Jiang Capital Co. Ltd., Class H | 850,000 | 147,247 | ||||||
806,013 | ||||||||
Household Durables — 2.6% | ||||||||
Kasen International Holdings Ltd.(a)(c) | 400,000 | 74,938 | ||||||
Konka Group Co. Ltd., Class B | 460,000 | 192,428 | ||||||
Ozner Water International Holding Ltd.(a)(b)(c) | 425,000 | 30,540 | ||||||
Q Technology Group Co. Ltd.(a) | 275,000 | 386,755 | ||||||
Skyworth Group Ltd.(a)(c) | 1,250,000 | 312,779 | ||||||
TCL Electronics Holdings Ltd. | 475,000 | 264,531 | ||||||
1,261,971 | ||||||||
Household Products — 1.1% | ||||||||
Vinda International Holdings Ltd. | 208,000 | 535,143 | ||||||
Independent Power and Renewable Electricity Producers — 1.9% | ||||||||
Canvest Environmental Protection Group Co. Ltd. | 400,000 | 192,993 | ||||||
CGN Meiya Power Holdings Co. Ltd.(a)(b) | 850,000 | 129,795 | ||||||
China Datang Corp. Renewable Power Co. Ltd., Class H | 1,550,000 | 125,304 | ||||||
China Everbright Greentech Ltd.(b) | 350,000 | 169,318 | ||||||
Concord New Energy Group Ltd. | 4,000,000 | 174,514 | ||||||
GCL New Energy Holdings Ltd.(a) | 3,850,000 | 69,164 |
Security | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers(continued) | ||||||||
Panda Green Energy Group Ltd.(a) | 3,000,000 | $ | 83,921 | |||||
945,009 | ||||||||
Industrial Conglomerates — 0.4% | ||||||||
Realord Group Holdings Ltd.(a) | 300,000 | 174,001 | ||||||
Insurance — 1.4% | ||||||||
Fanhua Inc., ADR | 35,025 | 711,007 | ||||||
Interactive Media & Services — 2.3% | ||||||||
Bitauto Holdings Ltd., ADR(a) | 18,875 | 281,238 | ||||||
Qutoutiao Inc., ADR(a) | 37,100 | 193,291 | ||||||
Sohu.com Ltd., ADR(a)(c) | 21,075 | 200,845 | ||||||
So-Young International Inc., ADR(a) . | 11,725 | 141,286 | ||||||
Tian Ge Interactive Holdings Ltd.(a)(b)(c) . . | 375,000 | 84,210 | ||||||
Wise Talent Information Technology Co. Ltd.(a) | 85,000 | 209,417 | ||||||
1,110,287 | ||||||||
Internet & Direct Marketing Retail — 0.7% | ||||||||
Cogobuy Group(a)(b). | 375,000 | 51,488 | ||||||
HengTen Networks Group Ltd.(a)(c) | 15,100,000 | 191,825 | ||||||
Jumei International Holding Ltd., ADR(a)(c) . | 4,525 | 87,649 | ||||||
330,962 | ||||||||
IT Services — 4.3% | ||||||||
21Vianet Group Inc., ADR(a) | 39,125 | 586,093 | ||||||
AGTech Holdings Ltd.(a)(c) | 2,300,000 | 79,686 | ||||||
Chinasoft International Ltd.(c) | 1,350,000 | 828,045 | ||||||
Digital China Holdings Ltd . | 450,000 | 225,778 | ||||||
Hi Sun Technology China Ltd.(a) | 1,200,000 | 167,842 | ||||||
Huifu Payment Ltd.(a)(b)(c) | 330,000 | 124,496 | ||||||
INESA Intelligent Tech Inc., Class B. | 200,000 | 125,600 | ||||||
2,137,540 | ||||||||
Leisure Products — 0.3% | ||||||||
Bestway Global Holding Inc.(b) . | 212,500 | 67,624 | ||||||
Goodbaby International Holdings Ltd.(a)(c) . | 550,000 | 93,866 | ||||||
161,490 | ||||||||
Machinery — 3.2% | ||||||||
China Yuchai International Ltd . | 9,400 | 116,748 | ||||||
CIMC Enric Holdings Ltd. | 400,000 | 207,364 | ||||||
Huangshi Dongbei Electrical Appliance Co. Ltd., Class B. | 77,520 | 94,342 | ||||||
Kama Co. Ltd., Class B(a) . | 165,015 | 69,471 | ||||||
Lonking Holdings Ltd. . | 1,300,000 | 361,989 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. | 625,000 | 372,929 | ||||||
Shang Gong Group Co. Ltd., Class B(a) . . | 157,500 | 68,670 | ||||||
Shanghai Diesel Engine Co. Ltd., Class B . | 225,045 | 89,568 | ||||||
Shanghai Highly Group Co. Ltd., Class B. | 184,924 | 126,303 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H. | 150,000 | 75,067 | ||||||
1,582,451 | ||||||||
Marine — 1.2% | ||||||||
Atlas Crop | 56,475 | 598,635 | ||||||
Media — 0.7% | ||||||||
Mobvista Inc.(b) | 250,000 | 113,563 | ||||||
NOVA Group Holdings Ltd.(c) | 875,000 | 169,542 | ||||||
Phoenix Media Investment Holdings Ltd. . | 850,000 | 52,354 | ||||||
335,459 | ||||||||
Metals & Mining — 3.5% | ||||||||
China Metal Recycling Holdings Ltd.(a)(d) . | 184,800 | — | ||||||
China Metal Resources Utilization Ltd.(a)(b)(c) . | 600,000 | 229,435 | ||||||
China Oriental Group Co. Ltd | 750,000 | 255,997 | ||||||
Inner Mongolia Eerduosi Resources Co. Ltd., Class B | 262,600 | 213,757 |
S c h e d u l e o f I n v e s t m e n t s | 29 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Jinchuan Group International Resources Co. Ltd. | 1,650,000 | $ | 163,030 | |||||
MMG Ltd.(a) | 1,600,000 | 326,445 | ||||||
Real Gold Mining Ltd.(a)(d) | 126,000 | — | ||||||
Shougang Fushan Resources Group Ltd. | 1,600,000 | 310,020 | ||||||
Tiangong International Co. Ltd. | 600,000 | 214,037 | ||||||
1,712,721 | ||||||||
Multi-Utilities — 0.1% | ||||||||
Tianjin Development Holdings Ltd. | 250,000 | 62,556 | ||||||
Multiline Retail — 0.4% | ||||||||
Lifestyle China Group Ltd.(a) | 287,500 | 74,521 | ||||||
Shirble Department Store Holdings China Ltd. | 598,000 | 100,523 | ||||||
175,044 | ||||||||
Oil, Gas & Consumable Fuels — 1.1% | ||||||||
China LNG Group Ltd.(a) | 1,300,000 | 65,058 | ||||||
China Suntien Green Energy Corp. Ltd., Class H | 975,000 | 237,712 | ||||||
Sinopec Kantons Holdings Ltd. | 650,000 | 262,734 | ||||||
565,504 | ||||||||
Paper & Forest Products — 0.0% | ||||||||
China Forestry Holdings Co. Ltd.(a)(d) | 306,000 | 1 | ||||||
Qunxing Paper Holdings Co. Ltd.(a)(d) | 148,000 | — | ||||||
Superb Summit International Group Ltd.(a)(c)(d) | 59,500 | 76 | ||||||
77 | ||||||||
Pharmaceuticals — 5.9% | ||||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. | 175,000 | 294,172 | ||||||
CanSino Biologics Inc., Class H(a)(b) | 35,000 | 366,480 | ||||||
China Animal Healthcare Ltd.(a)(d) | 140,000 | 719 | ||||||
China Grand Pharmaceutical and Healthcare Holdings Ltd.,Class A | 600,000 | 380,339 | ||||||
China Shineway Pharmaceutical Group Ltd. | 200,000 | 174,515 | ||||||
Consun Pharmaceutical Group Ltd. | 300,000 | 146,669 | ||||||
Dawnrays Pharmaceutical Holdings Ltd. | 475,000 | 80,456 | ||||||
Hua Han Health Industry Holdings Ltd.(a)(c)(d) | 651,960 | 20,078 | ||||||
Lee's Pharmaceutical Holdings Ltd.(c) | 150,000 | 75,452 | ||||||
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co. Ltd.,Class H | 175,000 | 101,276 | ||||||
Shanghai Haixin Group Co., Class B | 295,000 | 114,165 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 2,525,000 | 298,086 | ||||||
Tong Ren Tang Technologies Co. Ltd., Class H | 375,000 | 346,463 | ||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd.,Class H(b) | 85,000 | 518,635 | ||||||
2,917,505 | ||||||||
Professional Services — 0.1% | ||||||||
China Index Holdings Ltd., ADR(a) | 23,450 | 49,245 | ||||||
Real Estate Management & Development — 17.3% | ||||||||
Aoyuan Healthy Life Group Co. Ltd. | 150,000 | 160,913 | ||||||
Beijing Capital Land Ltd., Class H(c) | 900,000 | 242,524 | ||||||
Beijing North Star Co. Ltd., Class H | 450,000 | 124,149 | ||||||
C&D International Investment Group Ltd. | 150,000 | 208,263 | ||||||
Central China Real Estate Ltd. | 550,038 | 321,848 | ||||||
China Logistics Property Holdings Co. Ltd.(a)(b) | 550,000 | 211,727 | ||||||
China Merchants Land Ltd. | 800,000 | 119,081 | ||||||
China Overseas Grand Oceans Group Ltd. | 1,025,000 | 701,041 | ||||||
China Overseas Property Holdings Ltd. | 915,000 | 739,698 | ||||||
China SCE Group Holdings Ltd. | 1,275,800 | 695,767 | ||||||
China South City Holdings Ltd. | 3,000,000 | 331,064 | ||||||
China Vast Industrial Urban Development Co. Ltd.(b) | 222,000 | 87,170 | ||||||
Colour Life Services Group Co. Ltd.(c) | 250,000 | 132,169 |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
DaFa Properties Group Ltd | 175,000 | $ | 111,381 | |||||
Dexin China Holdings Co. Ltd | 450,000 | 182,470 | ||||||
Fantasia Holdings Group Co. Ltd. . | 975,000 | 186,416 | ||||||
Gemdale Properties & Investment Corp. Ltd. . | 3,200,000 | 566,659 | ||||||
Glorious Property Holdings Ltd.(a) | 52,000 | 1,101 | ||||||
Greenland Hong Kong Holdings Ltd. | 550,000 | 213,844 | ||||||
Guorui Properties Ltd.(c) | 750,000 | 132,811 | ||||||
HKC Holdings Ltd. . | 100,920 | 80,031 | ||||||
Jiayuan International Group Ltd | 800,000 | 316,179 | ||||||
Jingrui Holdings Ltd. | 325,000 | 103,008 | ||||||
LVGEM China Real Estate Investment Co. Ltd.(c) . | 700,000 | 209,289 | ||||||
Nam Tai Property Inc.(a) | 15,275 | 103,870 | ||||||
Poly Property Group Co. Ltd. | 1,350,000 | 507,568 | ||||||
Redco Properties Group Ltd.(b) | 612,000 | 282,713 | ||||||
Redsun Properties Group Ltd | 450,000 | 141,472 | ||||||
Road King Infrastructure Ltd | 150,000 | 255,997 | ||||||
Ronshine China Holdings Ltd | 400,000 | 442,959 | ||||||
Shanghai Industrial Urban Development Group Ltd. | 1,300,000 | 145,129 | ||||||
Skyfame Realty Holdings Ltd. | 1,600,000 | 209,417 | ||||||
Yincheng International Holding Co. Ltd.(a) . | 300,000 | 102,784 | ||||||
Zhuguang Holdings Group Co. Ltd.(a) . | 950,000 | 134,094 | ||||||
8,504,606 | ||||||||
Road & Rail — 0.8% | ||||||||
CAR Inc.(a)(c) | 500,000 | 313,741 | ||||||
Shanghai Jinjiang International Industrial Investment Co. | ||||||||
Ltd., Class B | 107,500 | 79,550 | ||||||
393,291 | ||||||||
Semiconductors & Semiconductor Equipment — 3.1% | ||||||||
Daqo New Energy Corp., ADR(a)(c) | 6,675 | 437,680 | ||||||
GCL-Poly Energy Holdings Ltd.(a) | 9,325,000 | 442,734 | ||||||
JinkoSolar Holding Co. Ltd., ADR(a) . | 22,300 | 509,332 | ||||||
Shanghai Fudan Microelectronics Group Co. Ltd.,Class H(a) | 164,000 | 125,425 | ||||||
1,515,171 | ||||||||
Software — 2.0% | ||||||||
Aurora Mobile Ltd., ADR(a) . | 14,500 | 38,860 | ||||||
Cheetah Mobile Inc., ADR . | 24,925 | 72,532 | ||||||
China Youzan Ltd.(a)(c) . | 6,800,000 | 689,332 | ||||||
Inspur International Ltd . | 300,000 | 123,186 | ||||||
Sinosoft Technology Group Ltd. | 325,012 | 67,980 | ||||||
991,890 | ||||||||
Specialty Retail — 2.9% | ||||||||
Boshiwa International Holding Ltd.(a)(c)(d) . | 153,000 | — | ||||||
China Harmony New Energy Auto Holding Ltd | 512,500 | 253,191 | ||||||
China Meidong Auto Holdings Ltd . | 250,000 | 367,635 | ||||||
China ZhengTong Auto Services Holdings Ltd. | 737,500 | 204,413 | ||||||
Grand Baoxin Auto Group Ltd.(a) | 462,500 | 74,778 | ||||||
Mulsanne Group Holding Ltd.(a)(b) . | 162,500 | 146,589 | ||||||
Pou Sheng International Holdings Ltd. | 1,450,000 | 370,266 | ||||||
1,416,872 | ||||||||
Technology Hardware, Storage & Peripherals — 1.2% | ||||||||
Glory Sun Financial Group Ltd.(c) . | 8,300,000 | 266,263 | ||||||
Meitu Inc.(a)(b)(c) | 1,437,500 | 339,405 | ||||||
605,668 | ||||||||
Textiles, Apparel & Luxury Goods — 2.8% | ||||||||
361 Degrees International Ltd. . | 550,000 | 98,806 | ||||||
China Dongxiang Group Co. Ltd | 2,275,000 | 227,703 | ||||||
China Lilang Ltd.. | 275,000 | 178,204 |
30 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||
Cosmo Lady China Holdings Co. Ltd.(b) | 525,000 | $ | 68,041 | |||||
Fuguiniao Co. Ltd.(d) | 43,200 | 4,989 | ||||||
HOSA International Ltd.(a)(d) | 220,000 | 5,364 | ||||||
JNBY Design Ltd. | 100,000 | 107,788 | ||||||
Luthai Textile Co. Ltd., Class B | 125,037 | 116,645 | ||||||
Texhong Textile Group Ltd. | 187,500 | 197,532 | ||||||
Weiqiao Textile Co. | 287,500 | 74,521 | ||||||
Xtep International Holdings Ltd. | 762,500 | 307,229 | ||||||
1,386,822 | ||||||||
Trading Companies & Distributors — 1.3% | ||||||||
China Aircraft Leasing Group Holdings Ltd. | 187,500 | 181,171 | ||||||
CITIC Resources Holdings Ltd. | 1,850,037 | 100,893 | ||||||
HC Group Inc.(a)(c) | 375,000 | 101,533 | ||||||
Hong Kong Finance Investment Holding Group Ltd.(a) | 800,000 | 82,124 | ||||||
Shougang Concord International Enterprises Co. Ltd. | 4,550,000 | 195,591 | ||||||
661,312 | ||||||||
Transportation Infrastructure — 1.9% | ||||||||
Anhui Expressway Co. Ltd., Class H | 300,000 | 168,612 | ||||||
COSCO SHIPPING International Hong Kong Co. Ltd. | 350,000 | 103,297 | ||||||
Tianjin Port Development Holdings Ltd.(c) | 1,500,000 | 132,811 | ||||||
Xiamen International Port Co. Ltd., Class H | 600,000 | 69,292 | ||||||
Yuexiu Transport Infrastructure Ltd. | 600,000 | 465,800 | ||||||
939,812 | ||||||||
Water Utilities — 1.2% | ||||||||
China Everbright Water Ltd.(c) | 567,500 | 126,048 | ||||||
China Water Affairs Group Ltd.(c) | 560,000 | 446,244 | ||||||
572,292 | ||||||||
Total Common Stocks — 99.6% | ||||||||
(Cost: $56,468,039) | 49,125,017 |
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 10.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g) | 4,993,976 | $ | 4,997,471 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f) | 56,000 | 56,000 | ||||||
5,053,471 | ||||||||
Total Short-Term Investments — 10.3% | ||||||||
(Cost: $5,051,435) | 5,053,471 | |||||||
Total Investments in Securities — 109.9% | ||||||||
(Cost: $61,519,474) | 54,178,488 | |||||||
Other Assets, Less Liabilities — (9.9)% | (4,874,720 | ) | ||||||
Net Assets — 100.0% | $ | 49,303,768 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | All or a portion of this security is on loan. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Affiliate of the Fund. |
(f) | Annualized 7-day yield as of period-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 3,599,323 | 1,394,653 | 4,993,976 | $ | 4,997,471 | $ | 93,211 | (b) | $ | 196 | $ | 735 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 17,000 | 39,000 | 56,000 | 56,000 | 215 | — | — | |||||||||||||||||||||
$ | 5,053,471 | $ | 93,426 | $ | 196 | $ | 735 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
S c h e d u l e o f I n v e s t m e n t s | 31 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI China Small-Cap ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 48,985,096 | $ | — | $ | 139,921 | $ | 49,125,017 | ||||||||
Money Market Funds | 5,053,471 | — | — | 5,053,471 | ||||||||||||
$ | 54,038,567 | $ | — | $ | 139,921 | $ | 54,178,488 |
See notes to financial statements
32 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI Indonesia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Auto Components — 0.3% | ||||||||
Selamat Sempurna Tbk PT | 10,489,700 | $ | 1,074,742 | |||||
Automobiles — 4.2% | ||||||||
Astra International Tbk PT | 38,438,430 | 14,802,044 | ||||||
Banks — 42.0% | ||||||||
Bank Central Asia Tbk PT | 28,127,958 | 61,657,033 | ||||||
Bank Mandiri Persero Tbk PT | 43,525,660 | 22,069,990 | ||||||
Bank Negara Indonesia Persero Tbk PT | 24,811,358 | 12,148,443 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT | 14,442,836 | 895,914 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk PT | 21,551,700 | 923,805 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 154,018,860 | 44,979,196 | ||||||
Bank Tabungan Negara Persero Tbk PT | 16,643,226 | 1,972,015 | ||||||
Bank Tabungan Pensiunan Nasional Syariah Tbk PT(a) | 8,208,700 | 2,151,226 | ||||||
146,797,622 | ||||||||
Capital Markets — 0.5% | ||||||||
Kresna Graha Investama Tbk PT(a) | 50,275,500 | 1,653,949 | ||||||
Pool Advista Indonesia Tbk PT(a) | 7,416,700 | 25,847 | ||||||
1,679,796 | ||||||||
Chemicals — 1.8% | ||||||||
Barito Pacific Tbk PT(a) | 91,770,400 | 6,300,320 | ||||||
Construction & Engineering — 1.6% | ||||||||
Adhi Karya Persero Tbk PT | 13,416,610 | 706,014 | ||||||
PP Persero Tbk PT | 14,346,422 | 1,204,910 | ||||||
Sitara Propertindo Tbk PT(a)(b) | 31,243,800 | 431,174 | ||||||
Waskita Karya Persero Tbk PT | 20,624,000 | 1,401,527 | ||||||
Wijaya Karya Persero Tbk PT | 13,357,370 | 1,745,605 | ||||||
5,489,230 | ||||||||
Construction Materials — 4.1% | ||||||||
Indocement Tunggal Prakarsa Tbk PT | 6,183,944 | 6,432,853 | ||||||
Semen Indonesia Persero Tbk PT | 10,036,455 | 7,327,539 | ||||||
Waskita Beton Precast Tbk PT | 57,994,200 | 751,833 | ||||||
14,512,225 | ||||||||
Diversified Telecommunication Services — 10.4% | ||||||||
Inovisi Infracom Tbk PT(a)(b) | 9,476,400 | 0 | (c) | |||||
Link Net Tbk PT | 5,536,400 | 1,346,718 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 132,028,190 | 32,115,587 | ||||||
Tower Bersama Infrastructure Tbk PT | 38,958,700 | 3,000,478 | ||||||
36,462,783 | ||||||||
Electronic Equipment, Instruments & Components — 0.3% | ||||||||
Erajaya Swasembada Tbk PT | 8,789,900 | 992,482 | ||||||
Energy Equipment & Services — 0.1% | ||||||||
Pelayaran Tamarin Samudra Tbk PT(a) | 64,159,500 | 424,823 | ||||||
Food Products — 7.8% | ||||||||
Charoen Pokphand Indonesia Tbk PT | 24,601,625 | 9,773,777 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 8,067,954 | 5,777,886 | ||||||
Indofood Sukses Makmur Tbk PT | 14,920,830 | 6,759,742 | ||||||
Inti Agri Resources Tbk PT(a)(b) | 190,840,700 | 552,670 | ||||||
Japfa Comfeed Indonesia Tbk PT | 17,512,500 | 1,708,834 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT | 15,376,000 | 1,039,534 | ||||||
Sawit Sumbermas Sarana Tbk PT | 18,314,900 | 1,033,983 | ||||||
Tunas Baru Lampung Tbk PT | 16,521,500 | 708,188 | ||||||
27,354,614 |
Security | Shares | Value | ||||||
Gas Utilities — 1.0% | ||||||||
Perusahaan Gas Negara Tbk PT | 38,072,307 | $ | 3,396,588 | |||||
Household Products — 3.4% | ||||||||
Unilever Indonesia Tbk PT | 25,270,020 | 12,020,762 | ||||||
Insurance — 0.3% | ||||||||
Panin Financial Tbk PT(a) | 65,201,978 | 1,145,210 | ||||||
Marine — 0.2% | ||||||||
Berlian Laju Tanker Tbk PT(a) | 20,933,614 | 72,952 | ||||||
Trada Alam Minera Tbk PT(a)(b) | 163,879,000 | 474,590 | ||||||
547,542 | ||||||||
Media — 1.4% | ||||||||
Global Mediacom Tbk PT(a) | 41,390,600 | 894,308 | ||||||
Media Nusantara Citra Tbk PT | 24,179,100 | 2,165,544 | ||||||
Surya Citra Media Tbk PT | 23,113,700 | 1,804,311 | ||||||
4,864,163 | ||||||||
Metals & Mining — 0.8% | ||||||||
Aneka Tambang Tbk | 35,748,254 | 1,432,671 | ||||||
Krakatau Steel Persero Tbk PT(a) | 33,474,993 | 536,627 | ||||||
Timah Tbk PT | 19,031,780 | 762,730 | ||||||
2,732,028 | ||||||||
Multiline Retail — 1.4% | ||||||||
Matahari Department Store Tbk PT | 9,513,900 | 2,082,150 | ||||||
Mitra Adiperkasa Tbk PT | 33,571,400 | 1,871,902 | ||||||
Ramayana Lestari Sentosa Tbk PT | 13,151,800 | 948,745 | ||||||
4,902,797 | ||||||||
Oil, Gas & Consumable Fuels — 3.1% | ||||||||
Adaro Energy Tbk PT | 50,834,239 | 4,092,249 | ||||||
Alfa Energi Investama Tbk PT(a) | 6,663,000 | 44,118 | ||||||
Bukit Asam Tbk PT | 13,474,200 | 2,103,656 | ||||||
Bumi Resources Tbk PT(a) | 304,398,000 | 1,060,805 | ||||||
Indika Energy Tbk PT | 12,886,500 | 673,628 | ||||||
Indo Tambangraya Megah Tbk PT. | 1,783,400 | 1,404,595 | ||||||
Medco Energi Internasional Tbk PT(a) | 28,578,033 | 1,254,864 | ||||||
Sekawan Intipratama Tbk PT(a)(b) | 30,572,100 | 2,131 | ||||||
Sugih Energy Tbk PT(a)(b) | 39,886,700 | 11,120 | ||||||
United Tractors Tbk PT | 100,096 | 115,811 | ||||||
10,762,977 | ||||||||
Paper & Forest Products — 1.7% | ||||||||
Indah Kiat Pulp & Paper Corp. Tbk PT . | 9,561,400 | 3,748,588 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk PT . | 5,346,600 | 2,235,902 | ||||||
5,984,490 | ||||||||
Personal Products — 0.4% | ||||||||
Industri Jamu Dan Farmasi Sido Muncul Tbk PT | 15,332,500 | 1,314,443 | ||||||
Pharmaceuticals — 1.7% | ||||||||
Kalbe Farma Tbk PT. . | 71,872,585 | 6,111,487 | ||||||
Real Estate Management & Development — 4.7% | ||||||||
Alam Sutera Realty Tbk PT(a) | 63,587,116 | 673,653 | ||||||
Bumi Serpong Damai Tbk PT(a) | 30,499,422 | 2,125,766 | ||||||
Ciputra Development Tbk PT | 40,152,313 | 2,644,638 | ||||||
Hanson International Tbk PT(a)(b) | 372,896,535 | 1,071,322 | ||||||
Lippo Karawaci Tbk PT(a) | 166,287,042 | 2,642,512 | ||||||
Pakuwon Jati Tbk PT | 63,268,277 | 2,337,145 | ||||||
PP Properti Tbk PT | 199,097,239 | 707,716 | ||||||
Puradelta Lestari Tbk PT | 57,787,300 | 950,535 | ||||||
Rimo International Lestari Tbk PT(a)(b) | 54,096,000 | 164,013 | ||||||
Sentul City Tbk PT(a) | 205,781,500 | 717,134 |
S c h e d u l e o f I n v e s t m e n t s | 33 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Indonesia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
Summarecon Agung Tbk PT | 39,162,858 | $ | 2,292,859 | |||||
16,327,293 | ||||||||
Specialty Retail — 0.9% | ||||||||
Ace Hardware Indonesia Tbk PT | 28,083,679 | 2,965,449 | ||||||
Textiles, Apparel & Luxury Goods — 0.2% | ||||||||
Sri Rejeki Isman Tbk PT | 57,543,200 | 802,136 | ||||||
Tobacco — 2.7% | ||||||||
Gudang Garam Tbk PT | 1,624,442 | 5,774,284 | ||||||
Hanjaya Mandala Sampoerna Tbk PT | 32,275,200 | 3,824,209 | ||||||
9,598,493 | ||||||||
Trading Companies & Distributors — 0.4% | ||||||||
AKR Corporindo Tbk PT | 7,825,600 | 1,445,397 | ||||||
Transportation Infrastructure — 0.8% | ||||||||
Jasa Marga Persero Tbk PT | 8,216,008 | 2,679,973 | ||||||
Wireless Telecommunication Services — 0.9% | ||||||||
Indosat Tbk PT(a) | 4,424,100 | 629,041 | ||||||
XL Axiata Tbk PT(a) | 14,029,700 | 2,532,631 | ||||||
3,161,672 | ||||||||
Total Common Stocks — 99.1% | ||||||||
(Cost: $508,062,556) | 346,653,581 |
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 519,000 | $ | 519,000 | |||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $519,000) | 519,000 | |||||||
Total Investments in Securities — 99.2% | ||||||||
(Cost: $508,581,556) | 347,172,581 | |||||||
Other Assets, Less Liabilities — 0.8% | 2,746,159 | |||||||
Net Assets — 100.0% | $ | 349,918,740 |
(a) | Non-income producing security. |
(b) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(c) | Rounds to less than $1. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 197,000 | 322,000 | 519,000 | $ | 519,000 | $ | 1,688 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
MSCI Emerging Markets E-Mini | 43 | 03/20/20 | $ | 2,169 | $ | 51,861 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized appreciation on futures contracts(a) | $ | 51,861 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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). |
34 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Indonesia ETF |
February 29, 2020 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 8,192 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 51,861 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 1,051,673 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 343,946,561 | $ | — | $ | 2,707,020 | $ | 346,653,581 | ||||||||
Money Market Funds | 519,000 | — | — | 519,000 | ||||||||||||
$ | 344,465,561 | $ | — | $ | 2,707,020 | $ | 347,172,581 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 51,861 | $ | — | $ | — | $ | 51,861 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 35 |
Schedule of Investments (unaudited) | iShares® MSCI Peru ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 30.4% | ||||||||
Banco BBVA Peru SA | 4,408,282 | $ | 4,209,297 | |||||
Banco de Credito del Peru | 137,397 | 206,732 | ||||||
Credicorp Ltd. | 160,128 | 29,026,402 | ||||||
Intercorp Financial Services Inc. | 148,352 | 5,610,673 | ||||||
39,053,104 | ||||||||
Capital Markets — 0.5% | ||||||||
Bolsa de Valores de Lima SAA, Class A | 972,631 | 666,995 | ||||||
Construction & Engineering — 2.0% | ||||||||
Grana y Montero SAA(a) | 5,228,377 | 2,526,444 | ||||||
Construction Materials — 5.5% | ||||||||
Cementos Pacasmayo SAA | 2,043,933 | 3,459,782 | ||||||
Union Andina de Cementos SAA | 6,268,057 | 3,572,938 | ||||||
7,032,720 | ||||||||
Electric Utilities — 6.6% | ||||||||
Enel Distribucion Peru SAA | 1,304,720 | 2,480,327 | ||||||
Luz del Sur SAA | 772,246 | 6,033,172 | ||||||
8,513,499 | ||||||||
Food & Staples Retailing — 4.6% | ||||||||
InRetail Peru Corp.(b) | 171,574 | 5,884,988 | ||||||
Food Products — 4.9% | ||||||||
Alicorp SAA | 2,336,877 | 5,747,527 | ||||||
Casa Grande SAA | 630,371 | 523,485 | ||||||
6,271,012 | ||||||||
Metals & Mining — 35.5% | ||||||||
Cia. de Minas Buenaventura SAA, ADR | 1,206,066 | 13,447,636 | ||||||
Corp. Aceros Arequipa SA, NVS | 2,879,773 | 716,610 | ||||||
Hochschild Mining PLC | 2,108,869 | 4,301,775 | ||||||
Pan American Silver Corp. | 182,683 | 3,615,963 | ||||||
Sociedad Minera Cerro Verde SAA | 152,110 | 2,509,815 | ||||||
Southern Copper Corp. | 440,858 | 14,834,872 | ||||||
Volcan Cia. Minera SAA, Class B, NVS(a) | 24,636,897 | 3,122,384 | ||||||
Wheaton Precious Metals Corp. | 108,333 | 3,080,471 | ||||||
45,629,526 |
Security | Shares | Value | ||||||
Multiline Retail — 2.2% | ||||||||
SACI Falabella . | 871,644 | $ | 2,890,144 | |||||
Oil, Gas & Consumable Fuels — 1.9% | ||||||||
PetroTal Corp. | 6,921,294 | 1,617,825 | ||||||
Refineria La Pampilla SAA Relapasa(a) | 33,219,056 | 817,020 | ||||||
2,434,845 | ||||||||
Real Estate Management & Development — 2.3% | ||||||||
Parque Arauco SA | 1,457,075 | 2,984,026 | ||||||
Trading Companies & Distributors — 3.4% | ||||||||
Ferreycorp SAA . . . . . | 7,586,190 | 4,368,205 | ||||||
Total Common Stocks — 99.8% | ||||||||
(Cost: $185,840,220) | 128,255,508 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 11,000 | 11,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $11,000) | 11,000 | |||||||
Total Investments in Securities — 99.8% | ||||||||
(Cost: $185,851,220) | 128,266,508 | |||||||
Other Assets, Less Liabilities — 0.2% | 193,106 | |||||||
Net Assets — 100.0% | $ | 128,459,614 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | 11,000 | 11,000 | $ | 11,000 | $ | 1,508 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Derivative Financial Instruments Categorized by Risk Exposure
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 15,145 |
36 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Peru ETF |
February 29, 2020 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 259,500 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 128,255,508 | $ | — | $ | — | $ | 128,255,508 | ||||||||
Money Market Funds | 11,000 | — | — | 11,000 | ||||||||||||
$ | 128,266,508 | $ | — | $ | — | $ | 128,266,508 |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 37 |
Schedule of Investments (unaudited) | iShares® MSCI Philippines ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.6% | ||||||||
Cebu Air Inc. | 698,230 | $ | 1,007,451 | |||||
Banks — 16.7% | ||||||||
Bank of the Philippine Islands | 2,997,645 | 4,357,538 | ||||||
BDO Unibank Inc. | 6,542,874 | 17,841,285 | ||||||
East West Banking Corp.(a) | 1,888,100 | 407,437 | ||||||
Metropolitan Bank & Trust Co. | 5,982,624 | 6,578,246 | ||||||
Security Bank Corp. | 755,000 | 2,286,846 | ||||||
31,471,352 | ||||||||
Chemicals — 0.7% | ||||||||
D&L Industries Inc. | 9,463,200 | 1,340,349 | ||||||
Construction & Engineering — 0.3% | ||||||||
Megawide Construction Corp. | 2,067,900 | 513,578 | ||||||
Diversified Financial Services — 1.5% | ||||||||
Metro Pacific Investments Corp. | 47,219,050 | 2,843,796 | ||||||
Electric Utilities — 2.1% | ||||||||
Manila Electric Co. | 748,630 | 3,962,342 | ||||||
Food & Staples Retailing — 0.5% | ||||||||
Cosco Capital Inc. | 7,210,200 | 882,622 | ||||||
Food Products — 4.3% | ||||||||
Universal Robina Corp. | 2,932,108 | 8,127,648 | ||||||
Hotels, Restaurants & Leisure — 3.7% | ||||||||
Altus San Nicolas Corp. | 137,095 | 13,969 | ||||||
Bloomberry Resorts Corp. | 12,786,565 | 2,044,345 | ||||||
Jollibee Foods Corp. | 1,454,761 | 4,851,582 | ||||||
6,909,896 | ||||||||
Independent Power and Renewable Electricity Producers — 2.2% | ||||||||
Aboitiz Power Corp. | 4,875,635 | 2,630,308 | ||||||
First Gen Corp. | 4,198,437 | 1,510,532 | ||||||
4,140,840 | ||||||||
Industrial Conglomerates — 25.8% | ||||||||
Aboitiz Equity Ventures Inc. | 6,550,547 | 5,480,742 | ||||||
Alliance Global Group Inc.(a) | 13,072,939 | 2,574,837 | ||||||
Ayala Corp. | 620,568 | 8,065,253 | ||||||
GT Capital Holdings Inc. | 322,276 | 4,495,110 | ||||||
JG Summit Holdings Inc. | 9,509,142 | 12,591,802 | ||||||
SM Investments Corp. | 799,596 | 15,286,048 | ||||||
48,493,792 | ||||||||
Oil, Gas & Consumable Fuels — 1.3% | ||||||||
Petron Corp. | 9,355,200 | 616,645 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Pilipinas Shell Petroleum Corp. | 1,066,600 | $ | 545,070 | |||||
Semirara Mining & Power Corp. | 3,519,700 | 1,339,523 | ||||||
2,501,238 | ||||||||
Real Estate Management & Development — 27.8% | ||||||||
Ayala Land Inc. | 24,427,250 | 18,688,823 | ||||||
DoubleDragon Properties Corp.(a) | 2,366,090 | 789,083 | ||||||
Filinvest Land Inc. | 32,136,590 | 775,439 | ||||||
Megaworld Corp. | 37,491,960 | 2,500,690 | ||||||
Robinsons Land Corp. | 6,882,106 | 2,875,701 | ||||||
SM Prime Holdings Inc. | 33,546,735 | 25,205,296 | ||||||
Vista Land & Lifescapes Inc. | 12,677,600 | 1,561,850 | ||||||
52,396,882 | ||||||||
Specialty Retail — 0.9% | ||||||||
Wilcon Depot Inc. | 4,772,900 | 1,694,742 | ||||||
Transportation Infrastructure — 3.8% | ||||||||
International Container Terminal Services Inc. | 3,323,573 | 6,911,206 | ||||||
MacroAsia Corp.. . | 1,576,020 | 259,707 | ||||||
7,170,913 | ||||||||
Water Utilities — 0.5% | ||||||||
Manila Water Co. Inc. | 4,103,429 | 946,666 | ||||||
Wireless Telecommunication Services — 5.0% | ||||||||
Globe Telecom Inc. | 110,770 | 3,865,813 | ||||||
PLDT Inc. | 286,884 | 5,571,656 | ||||||
9,437,469 | ||||||||
Total Common Stocks — 97.7% | ||||||||
(Cost: $239,239,613) | 183,841,576 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c) | 62,000 | 62,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $62,000) | 62,000 | |||||||
Total Investments in Securities — 97.7% | ||||||||
(Cost: $239,301,613) | 183,903,576 | |||||||
Other Assets, Less Liabilities — 2.3% | 4,385,713 | |||||||
Net Assets — 100.0% | $ | 188,289,289 |
(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 affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares . | 135,000 | (73,000 | ) | 62,000 | $ | 62,000 | $ | 1,136 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
38 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Philippines ETF |
February 29, 2020 |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
MSCI Emerging Markets E-Mini | 86 | 03/20/20 | $ | 4,338 | $ | (42,959 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 42,959 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (76,102 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (42,959 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 2,951,047 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 183,827,607 | $ | 13,969 | $ | — | $ | 183,841,576 | ||||||||
Money Market Funds | 62,000 | — | — | 62,000 | ||||||||||||
$ | 183,889,607 | $ | 13,969 | $ | — | $ | 183,903,576 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (42,959 | ) | $ | — | $ | — | $ | (42,959 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 39 |
Schedule of Investments (unaudited) | iShares® MSCI Poland ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 28.3% | ||||||||
Alior Bank SA(a) | 443,736 | $ | 2,363,471 | |||||
Bank Millennium SA(a) | 3,145,281 | 3,849,932 | ||||||
Bank Polska Kasa Opieki SA | 497,561 | 11,110,475 | ||||||
mBank SA(a) | 76,514 | 5,783,136 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA | 4,315,543 | 34,248,951 | ||||||
Santander Bank Polska SA | 167,650 | 10,664,423 | ||||||
68,020,388 | ||||||||
Capital Markets — 0.7% | ||||||||
Warsaw Stock Exchange | 169,264 | 1,631,378 | ||||||
Chemicals — 1.2% | ||||||||
Ciech SA(a) | 160,122 | 1,421,430 | ||||||
Grupa Azoty SA(a)(b) | 258,666 | 1,334,432 | ||||||
2,755,862 | ||||||||
Construction & Engineering — 1.2% | ||||||||
Budimex SA | 65,931 | 2,913,024 | ||||||
Consumer Finance — 1.3% | ||||||||
KRUK SA | 91,994 | 3,219,918 | ||||||
Diversified Telecommunication Services — 2.3% | ||||||||
Orange Polska SA(a) | 3,520,669 | 5,509,556 | ||||||
Electric Utilities — 4.3% | ||||||||
Enea SA(a) | 1,243,047 | 1,765,557 | ||||||
Energa SA(a) | 1,186,196 | 2,112,029 | ||||||
PGE Polska Grupa Energetyczna SA(a) | 4,297,650 | 4,872,421 | ||||||
Tauron Polska Energia SA(a) | 5,932,473 | 1,655,140 | ||||||
10,405,147 | ||||||||
Entertainment — 9.4% | ||||||||
CD Projekt SA | 319,693 | 22,582,114 | ||||||
Food & Staples Retailing — 4.7% | ||||||||
Dino Polska SA(a)(c) | 253,303 | 9,110,093 | ||||||
Eurocash SA(b) | 482,151 | 2,215,887 | ||||||
11,325,980 | ||||||||
Health Care Providers & Services — 0.7% | ||||||||
Neuca SA | 18,413 | 1,732,626 | ||||||
Hotels, Restaurants & Leisure — 1.5% | ||||||||
AmRest Holdings SE(a)(b) | 343,154 | 3,485,763 | ||||||
Insurance — 10.9% | ||||||||
Powszechny Zaklad Ubezpieczen SA | 2,978,332 | 26,250,295 | ||||||
Machinery — 0.4% | ||||||||
Famur SA | 1,556,913 | 1,022,752 | ||||||
Media — 3.5% | ||||||||
Cyfrowy Polsat SA | 1,316,519 | 8,414,609 |
Security | Shares | Value | ||||||
Metals & Mining — 4.4% | ||||||||
Jastrzebska Spolka Weglowa SA(b) | 287,108 | $ | 985,256 | |||||
KGHM Polska Miedz SA(a) | 541,244 | 9,683,555 | ||||||
10,668,811 | ||||||||
Oil, Gas & Consumable Fuels — 15.2% | ||||||||
Grupa Lotos SA. . . | 474,228 | 7,151,850 | ||||||
Lubelski Wegiel Bogdanka SA | 92,603 | 386,599 | ||||||
Polski Koncern Naftowy ORLEN SA | 1,475,920 | 21,951,442 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 8,779,633 | 7,054,525 | ||||||
36,544,416 | ||||||||
Road & Rail — 0.3% | ||||||||
PKP Cargo SA. . . | 184,930 | 592,872 | ||||||
Software — 2.0% | ||||||||
Asseco Poland SA . . . | 309,373 | 4,762,965 | ||||||
Textiles, Apparel & Luxury Goods — 5.5% | ||||||||
CCC SA | 150,082 | 2,738,834 | ||||||
LPP SA. | 6,047 | 10,582,672 | ||||||
13,321,506 | ||||||||
Wireless Telecommunication Services — 2.0% | ||||||||
PLAY Communications SA(c) | 614,537 | 4,766,414 | ||||||
Total Common Stocks — 99.8% | ||||||||
(Cost: $381,812,880) | 239,926,396 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 5,658,797 | 5,662,758 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 1,283,000 | 1,283,000 | ||||||
6,945,758 | ||||||||
Total Short-Term Investments — 2.9% | ||||||||
(Cost: $6,944,532) | 6,945,758 | |||||||
Total Investments in Securities — 102.7% | ||||||||
(Cost: $388,757,412) | 246,872,154 | |||||||
Other Assets, Less Liabilities — (2.7)% | (6,465,075 | ) | ||||||
Net Assets — 100.0% | $ | 240,407,079 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
40 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Poland ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 3,119,876 | 2,538,921 | 5,658,797 | $ | 5,662,758 | $ | 22,902 | (b) | $ | 49 | $ | 838 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 127,000 | 1,156,000 | 1,283,000 | 1,283,000 | 1,995 | — | — | |||||||||||||||||||||
$ | 6,945,758 | $ | 24,897 | $ | 49 | $ | 838 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 239,926,396 | $ | — | $ | — | $ | 239,926,396 | ||||||||
Money Market Funds | 6,945,758 | — | — | 6,945,758 | ||||||||||||
$ | 246,872,154 | $ | — | $ | — | $ | 246,872,154 |
See notes to financial statements
s c h e d u l e o f I n v e s t m e n t s | 41 |
Schedule of Investments (unaudited) | iShares® MSCI Qatar ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Air Freight & Logistics — 1.4% | ||||||||
Gulf Warehousing Co. | 739,218 | $ | 929,745 | |||||
Banks — 49.0% | ||||||||
Commercial Bank PSQC (The) | 2,426,571 | 2,995,726 | ||||||
Doha Bank QPSC | 2,584,745 | 1,636,048 | ||||||
Masraf Al Rayan QSC | 4,193,393 | 4,656,402 | ||||||
Qatar First Bank(a) | 2,166,122 | 608,710 | ||||||
Qatar International Islamic Bank QSC | 1,011,877 | 2,346,590 | ||||||
Qatar Islamic Bank SAQ | 1,313,668 | 5,591,144 | ||||||
Qatar National Bank QPSC | 2,927,154 | 15,045,858 | ||||||
32,880,478 | ||||||||
Chemicals — 4.2% | ||||||||
Mesaieed Petrochemical Holding Co. | 5,789,965 | 2,796,016 | ||||||
Construction Materials — 0.9% | ||||||||
Qatar National Cement Co. QSC | 514,794 | 584,977 | ||||||
Diversified Financial Services — 0.6% | ||||||||
Salam International Investment Ltd. QSC(a) | 3,707,474 | 388,418 | ||||||
Diversified Telecommunication Services — 3.1% | ||||||||
Ooredoo QPSC | 1,211,980 | 2,091,114 | ||||||
Energy Equipment & Services — 1.1% | ||||||||
Gulf International Services QSC(a) | 2,216,793 | 780,199 | ||||||
Food & Staples Retailing — 1.4% | ||||||||
Al Meera Consumer Goods Co. QSC | 216,459 | 915,372 | ||||||
Health Care Providers & Services — 1.1% | ||||||||
Medicare Group | 422,430 | 760,427 | ||||||
Industrial Conglomerates — 9.0% | ||||||||
Industries Qatar QSC | 2,066,627 | 5,068,883 | ||||||
Mannai Corp. QSC | 422,741 | 350,967 | ||||||
Qatar Industrial Manufacturing Co. QSC | 785,889 | 621,799 | ||||||
6,041,649 | ||||||||
Insurance — 2.6% | ||||||||
Qatar Insurance Co. SAQ | 2,338,349 | 1,722,517 | ||||||
Marine — 2.1% | ||||||||
Qatar Navigation QSC | 942,248 | 1,442,177 |
Security | Shares | Value | ||||||
Metals & Mining — 1.4% | ||||||||
Qatar Aluminum Manufacturing Co | 5,559,153 | $ | 929,736 | |||||
Multi-Utilities — 4.3% | ||||||||
Qatar Electricity & Water Co. QSC | 702,883 | 2,886,091 | ||||||
Oil, Gas & Consumable Fuels — 7.1% | ||||||||
Qatar Fuel QSC | 483,946 | 2,548,266 | ||||||
Qatar Gas Transport Co. Ltd. | 3,714,499 | 2,219,396 | ||||||
4,767,662 | ||||||||
Real Estate Management & Development — 8.4% | ||||||||
Barwa Real Estate Co. | 2,756,888 | 2,331,693 | ||||||
Ezdan Holding Group QSC(a) | 11,687,205 | 1,712,283 | ||||||
Mazaya Qatar Real Estate Development QSC. | 2,633,660 | 467,050 | ||||||
United Development Co. QSC | 3,366,193 | 1,110,339 | ||||||
5,621,365 | ||||||||
Wireless Telecommunication Services — 1.4% | ||||||||
Vodafone Qatar QSC | 3,309,609 | 932,755 | ||||||
Total Common Stocks — 99.1% | ||||||||
(Cost: $64,621,614) | 66,470,698 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.3% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c) | 193,000 | 193,000 | ||||||
Total Short-Term Investments — 0.3% | ||||||||
(Cost: $193,000) | 193,000 | |||||||
Total Investments in Securities — 99.4% | ||||||||
(Cost: $64,814,614) | 66,663,698 | |||||||
Other Assets, Less Liabilities — 0.6% | 374,633 | |||||||
Net Assets — 100.0% | $ | 67,038,331 |
(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 affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | 193,000 | 193,000 | $ | 193,000 | $ | 1,664 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
42 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Qatar ETF |
February 29, 2020 |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
MSCI Emerging Markets E-Mini | 10 | 03/20/20 | $ | 504 | $ | (17,632 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 17,632 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 4,984 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (17,632 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 168,133 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 66,470,698 | $ | — | $ | — | $ | 66,470,698 | ||||||||
Money Market Funds | 193,000 | — | — | 193,000 | ||||||||||||
$ | 66,663,698 | $ | — | $ | — | $ | 66,663,698 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (17,632 | ) | $ | — | $ | — | $ | (17,632 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 43 |
Schedule of Investments (unaudited) | iShares® MSCI Saudi Arabia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 42.6% | ||||||||
Al Rajhi Bank | 4,824,030 | $ | 79,596,817 | |||||
Alinma Bank | 3,020,757 | 18,729,257 | ||||||
Arab National Bank | 2,045,349 | 13,793,770 | ||||||
Bank AlBilad | 1,534,574 | 9,800,984 | ||||||
Bank Al-Jazira | 1,719,779 | 6,381,267 | ||||||
Banque Saudi Fransi | 2,228,407 | 20,225,845 | ||||||
National Commercial Bank | 4,688,866 | 55,368,989 | ||||||
Riyad Bank | 4,643,284 | 27,130,691 | ||||||
Samba Financial Group | 3,719,302 | 26,619,555 | ||||||
Saudi British Bank (The) | 2,613,441 | 19,645,218 | ||||||
277,292,393 | ||||||||
Building Products — 0.2% | ||||||||
Saudi Ceramic Co.(a) | 159,237 | 1,574,755 | ||||||
Chemicals — 17.1% | ||||||||
Advanced Petrochemical Co. | 457,281 | 5,466,894 | ||||||
Alujain Holding(a) | 184,860 | 1,517,710 | ||||||
National Industrialization Co.(a) | 1,432,733 | 4,498,892 | ||||||
Sahara International Petrochemical Co. | 1,532,078 | 6,370,896 | ||||||
Saudi Arabian Fertilizer Co. | 588,699 | 10,545,268 | ||||||
Saudi Basic Industries Corp. | 2,937,570 | 61,625,152 | ||||||
Saudi Industrial Investment Group | 951,693 | 5,347,645 | ||||||
Saudi Kayan Petrochemical Co.(a) | 2,318,767 | 5,476,283 | ||||||
Yanbu National Petrochemical Co. | 789,458 | 10,416,679 | ||||||
111,265,419 | ||||||||
Construction Materials — 4.4% | ||||||||
Arabian Cement Co./Saudi Arabia | 233,585 | 2,098,311 | ||||||
City Cement Co. | 448,175 | 2,035,693 | ||||||
Eastern Province Cement Co. | 207,182 | 1,916,358 | ||||||
Najran Cement Co.(a) | 456,479 | 1,401,743 | ||||||
Northern Region Cement Co.(a) | 473,900 | 1,503,241 | ||||||
Qassim Cement Co. (The) | 197,527 | 3,580,391 | ||||||
Saudi Cement Co. | 322,604 | 5,245,593 | ||||||
Southern Province Cement Co. | 275,316 | 4,381,278 | ||||||
Yamama Cement Co.(a) | 452,338 | 2,884,160 | ||||||
Yanbu Cement Co. | 345,544 | 3,398,793 | ||||||
28,445,561 | ||||||||
Diversified Financial Services — 0.2% | ||||||||
Aseer Trading Tourism & Manufacturing Co.(a) | 409,018 | 1,208,029 | ||||||
Diversified Telecommunication Services — 5.2% | ||||||||
Saudi Telecom Co. | 1,538,985 | 33,885,155 | ||||||
Electric Utilities — 2.4% | ||||||||
Saudi Electricity Co. | 3,433,559 | 15,376,194 | ||||||
Food & Staples Retailing — 0.7% | ||||||||
Abdullah Al Othaim Markets Co. | 194,734 | 4,292,817 | ||||||
Food Products — 4.1% | ||||||||
Almarai Co. JSC | 1,037,344 | 12,664,362 | ||||||
National Agriculture Development Co. (The)(a) | 219,833 | 1,511,846 | ||||||
Saudia Dairy & Foodstuff Co. | 74,420 | 2,741,529 | ||||||
Savola Group (The)(a) | 1,100,282 | 9,810,591 | ||||||
26,728,328 | ||||||||
Gas Utilities — 0.2% | ||||||||
National Gas & Industrialization Co. | 193,602 | 1,610,125 |
Security | Shares | Value | ||||||
Health Care Providers & Services — 2.0% | ||||||||
Al Hammadi Co. for Development and Investment(a) | 306,679 | $ | 1,948,881 | |||||
Dallah Healthcare Co | 152,251 | 2,081,961 | ||||||
Middle East Healthcare Co.(a) | 177,556 | 1,481,408 | ||||||
Mouwasat Medical Services Co | 214,733 | 4,974,090 | ||||||
National Medical Care Co. | 115,527 | 1,459,678 | ||||||
Saudi Chemical Co. Holding(a) | 230,737 | 1,394,939 | ||||||
13,340,957 | ||||||||
Hotels, Restaurants & Leisure — 2.0% | ||||||||
Dur Hospitality Co | 205,411 | 1,560,499 | ||||||
Herfy Food Services Co | 116,478 | 1,465,483 | ||||||
Leejam Sports Co. JSC | 102,428 | 2,028,629 | ||||||
Saudi Airlines Catering Co | 176,755 | 4,296,963 | ||||||
Seera Group Holding | 661,610 | 3,491,904 | ||||||
12,843,478 | ||||||||
Insurance — 1.5% | ||||||||
Al Rajhi Co for Cooperative Insurance(a) | 95,213 | 1,581,173 | ||||||
Bupa Arabia for Cooperative Insurance Co. . | 124,598 | 3,221,646 | ||||||
Co for Cooperative Insurance (The)(a) | 266,601 | 4,889,284 | ||||||
9,692,103 | ||||||||
Media — 0.5% | ||||||||
Saudi Research & Marketing Group(a) | 165,560 | 3,075,978 | ||||||
Metals & Mining — 2.8% | ||||||||
Saudi Arabian Mining Co.(a) | 1,772,635 | 18,002,770 | ||||||
Oil, Gas & Consumable Fuels — 6.6% | ||||||||
Aldrees Petroleum and Transport Services Co. | 142,252 | 2,271,330 | ||||||
Rabigh Refining & Petrochemical Co.(a) | 950,403 | 3,977,430 | ||||||
Saudi Arabian Oil Co.(a)(b) | 4,135,233 | 36,761,301 | ||||||
43,010,061 | ||||||||
Pharmaceuticals — 0.3% | ||||||||
Saudi Pharmaceutical Industries & Medical Appliances Corp. | 288,802 | 2,155,526 | ||||||
Professional Services — 0.1% | ||||||||
Maharah Human Resources Co. | 35,844 | 742,391 | ||||||
Real Estate Management & Development — 2.1% | ||||||||
Arriyadh Development Co | 446,694 | 1,945,616 | ||||||
Dar Al Arkan Real Estate Development Co.(a) | 2,274,134 | 5,680,031 | ||||||
Emaar Economic City(a) | 1,687,056 | 4,164,238 | ||||||
Saudi Real Estate Co.(a) | 448,353 | 1,685,133 | ||||||
13,475,018 | ||||||||
Road & Rail — 0.5% | ||||||||
Saudi Public Transport Co.(a) | 324,548 | 1,472,426 | ||||||
United International Transportation Co | 179,024 | 1,658,293 | ||||||
3,130,719 | ||||||||
Specialty Retail — 2.5% | ||||||||
Fawaz Abdulaziz Al Hokair & Co.(a) | 356,209 | 2,682,368 | ||||||
Jarir Marketing Co | 245,942 | 9,951,752 | ||||||
Saudi Co. For Hardware CJSC | 77,991 | 1,051,938 | ||||||
United Electronics Co | 118,099 | 2,471,217 | ||||||
16,157,275 | ||||||||
Wireless Telecommunication Services — 2.0% | ||||||||
Etihad Etisalat Co.(a) | 1,582,433 | 9,676,400 | ||||||
Mobile Telecommunications Co.(a). | 1,188,498 | 3,206,077 | ||||||
12,882,477 | ||||||||
Total Common Stocks — 100.0% | ||||||||
(Cost: $689,165,773) | 650,187,529 |
44 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Saudi Arabia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 311,000 | $ | 311,000 | |||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $311,000) | 311,000 | |||||||
Total Investments in Securities — 100.0% | ||||||||
(Cost: $689,476,773) | 650,498,529 | |||||||
Other Assets, Less Liabilities — 0.0% | 13,409 | |||||||
Net Assets — 100.0% | $ | 650,511,938 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Share | — | 311,000 | 311,000 | $ | 311,000 | $ | 7,288 | $ | — | $ | — |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
MSCI Emerging Markets E-Mini | 1 | 03/20/20 | $ | 50 | $ | (4,816 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 4,816 |
(a) Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 4,306 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (4,816 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 16,813 |
S c h e d u l e o f I n v e s t m e n t s | 45 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Saudi Arabia ETF |
February 29, 2020 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 650,187,529 | $ | — | $ | — | $ | 650,187,529 | ||||||||
Money Market Funds | 311,000 | — | — | 311,000 | ||||||||||||
$ | 650,498,529 | $ | — | $ | — | $ | 650,498,529 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (4,816 | ) | $ | — | $ | — | $ | (4,816 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements
46 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI UAE ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 3.9% | ||||||||
Air Arabia PJSC(a) | 5,982,764 | $ | 2,280,451 | |||||
Banks — 35.1% | ||||||||
Abu Dhabi Commercial Bank PJSC | 2,816,035 | 5,466,615 | ||||||
Dubai Islamic Bank PJSC | 1,664,317 | 2,446,925 | ||||||
First Abu Dhabi Bank PJSC | 3,193,128 | 12,449,452 | ||||||
20,362,992 | ||||||||
Building Products — 0.8% | ||||||||
National Central Cooling Co. PJSC | 874,670 | 485,809 | ||||||
Capital Markets — 5.0% | ||||||||
Dubai Financial Market PJSC(a) | 6,906,652 | 1,654,783 | ||||||
SHUAA Capital PSC(a) | 5,458,353 | 1,226,045 | ||||||
2,880,828 | ||||||||
Construction & Engineering — 1.7% | ||||||||
Arabtec Holding PJSC | 3,632,495 | 736,804 | ||||||
Drake & Scull International PJSC(a)(b) | 2,972,998 | 223,568 | ||||||
960,372 | ||||||||
Diversified Financial Services — 4.6% | ||||||||
Al Waha Capital PJSC | 5,127,521 | 1,144,754 | ||||||
Amanat Holdings PJSC | 6,054,044 | 1,315,344 | ||||||
Gulf General Investment Co.(a)(b) | 7,295,803 | 195,063 | ||||||
2,655,161 | ||||||||
Diversified Telecommunication Services — 14.1% | ||||||||
Emirates Telecommunications Group Co. PJSC | 1,900,762 | 8,176,656 | ||||||
Energy Equipment & Services — 0.8% | ||||||||
Lamprell PLC(a) | 1,284,148 | 472,390 | ||||||
Food Products — 1.1% | ||||||||
Agthia Group PJSC | 805,247 | 657,720 | ||||||
Health Care Providers & Services — 2.7% | ||||||||
NMC Health PLC | 128,622 | 1,541,688 | ||||||
Hotels, Restaurants & Leisure — 1.4% | ||||||||
DXB Entertainments PJSC(a) | 17,178,433 | 832,520 | ||||||
Industrial Conglomerates — 3.3% | ||||||||
Dubai Investments PJSC | 5,590,595 | 1,933,093 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels — 3.6% | ||||||||
Dana Gas PJSC . | 8,671,671 | $ | 2,065,864 | |||||
Real Estate Management & Development — 14.2% | ||||||||
Aldar Properties PJSC . . | 4,468,605 | 2,579,281 | ||||||
DAMAC Properties Dubai Co. PJSC(a) | 7,871,079 | 1,407,961 | ||||||
Deyaar Development PJSC(a) | 1,101,194 | 92,943 | ||||||
Emaar Development PJSC | 94,107 | 92,752 | ||||||
Emaar Malls PJSC | 217,000 | 95,121 | ||||||
Emaar Properties PJSC | 2,339,113 | 2,229,000 | ||||||
Eshraq Investments PJSC(a) | 6,115,857 | 516,190 | ||||||
RAK Properties PJSC(a) | 5,260,952 | 623,081 | ||||||
Union Properties PJSC(a) | 11,283,533 | 617,493 | ||||||
8,253,822 | ||||||||
Thrifts & Mortgage Finance — 0.6% | ||||||||
Amlak Finance PJSC(a) | 3,220,990 | 370,078 | ||||||
Transportation Infrastructure — 4.4% | ||||||||
DP World PLC | 158,251 | 2,571,579 | ||||||
Total Common Stocks — 97.3% | ||||||||
(Cost: $62,364,204) | 56,501,023 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 53,000 | 53,000 | ||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $53,000) | 53,000 | |||||||
Total Investments in Securities — 97.4% | ||||||||
(Cost: $62,417,204) | 56,554,023 | |||||||
Other Assets, Less Liabilities — 2.6% | 1,501,822 | |||||||
Net Assets — 100.0% | $ | 58,055,845 |
(a) | Non-income producing security. |
(b) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 845,962 | (845,962 | ) | — | $ | — | $ | 6,552 | (b) | $ | (173 | ) | $ | 85 | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 158,000 | (105,000 | ) | 53,000 | 53,000 | 683 | — | — | ||||||||||||||||||||
$ | 53,000 | $ | 7,235 | $ | (173 | ) | $ | 85 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
S c h e d u l e o f I n v e s t m e n t s | 47 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI UAE ETF |
February 29, 2020 |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
MSCI Emerging Markets E-Mini | 29 | 03/20/20 | $ | 1,463 | $ | 5,674 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized appreciation on futures contracts(a) | $ | 5,674 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 1,042 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 5,674 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 660,587 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 56,082,392 | $ | — | $ | 418,631 | $ | 56,501,023 | ||||||||
Money Market Funds | 53,000 | — | — | 53,000 | ||||||||||||
$ | 56,135,392 | $ | — | $ | 418,631 | $ | 56,554,023 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 5,674 | $ | — | $ | — | $ | 5,674 |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
48 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI UAE ETF |
February 29, 2020 |
The following table includes a rollforward for the six months ended February 29, 2020 of investments whose values are classified as Level 3 as of the beginning or end of the period.
Common Stocks | ||||
Balance at beginning of period | $ | 465,742 | ||
Realized gain (loss) and change in unrealized appreciation/depreciation | (47,111 | ) | ||
Purchases | — | |||
Sales | — | |||
Transfers in(a) | — | |||
Transfers out(a) | — | |||
Balance at end of period | $ | 418,631 | ||
Net change in unrealized appreciation/depreciation on investments still held at end of period | $ | (47,111 | ) |
(a) Represents the value as of the beginning of the reporting period.
The Fund's investments that are categorized as Level 3 were valued utilizing a single broker quote without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.
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 | 49 |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares MSCI Argentina and Global Exposure ETF | iShares MSCI Brazil Small-Cap ETF | iShares MSCI China ETF | iShares MSCI China Small-Cap ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||||||||||
Unaffiliated(b) | $ | 13,759,985 | $ | 169,778,635 | $ | 4,785,405,507 | $ | 49,125,017 | ||||||||
Affiliated(c) | 1,035,447 | 164,000 | 173,790,033 | 5,053,471 | ||||||||||||
Cash | 135 | 763 | 181 | 127 | ||||||||||||
Foreign currency, at value(d) | 3,611 | 52,952 | 15,847,534 | 63,760 | ||||||||||||
Foreign currency collateral pledged: | ||||||||||||||||
Futures contracts(e) | — | — | 736,169 | — | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 574,370 | 18,769,589 | 46,751,430 | 1,779,426 | ||||||||||||
Securities lending income — Affiliated | 413 | — | 138,990 | 23,427 | ||||||||||||
Dividends | 16 | 521,771 | 23,027 | 3,518 | ||||||||||||
Total assets | 15,373,977 | 189,287,710 | 5,022,692,871 | 56,048,746 | ||||||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 1,023,723 | — | 170,779,897 | 4,994,914 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 558,146 | 661,207 | 58,920,682 | 1,727,076 | ||||||||||||
Variation margin on futures contracts | — | — | 96,301 | — | ||||||||||||
Capital shares redeemed | — | 17,999,921 | — | — | ||||||||||||
Investment advisory fees | 2,929 | 94,539 | 2,220,843 | 22,988 | ||||||||||||
Total liabilities | 1,584,798 | 18,755,667 | 232,017,723 | 6,744,978 | ||||||||||||
NET ASSETS | $ | 13,789,179 | $ | 170,532,043 | $ | 4,790,675,148 | $ | 49,303,768 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 21,713,048 | $ | 193,050,533 | $ | 4,807,380,417 | $ | 64,130,330 | ||||||||
Accumulated loss | (7,923,869 | ) | (22,518,490 | ) | (16,705,269 | ) | (14,826,562 | ) | ||||||||
NET ASSETS | $ | 13,789,179 | $ | 170,532,043 | $ | 4,790,675,148 | $ | 49,303,768 | ||||||||
Shares outstanding | 700,000 | 9,500,000 | 78,000,000 | 1,250,000 | ||||||||||||
Net asset value | $ | 19.70 | $ | 17.95 | $ | 61.42 | $ | 39.44 | ||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value | None | None | None | None | ||||||||||||
(a) Securities loaned, at value | $ | 959,028 | $ | — | $ | 163,579,090 | $ | 4,460,698 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 19,757,140 | $ | 137,986,302 | $ | 4,221,915,125 | $ | 56,468,039 | ||||||||
(c) Investments, at cost — Affiliated | $ | 1,035,273 | $ | 164,000 | $ | 173,717,546 | $ | 5,051,435 | ||||||||
(d) Foreign currency, at cost | $ | 3,668 | $ | 53,555 | $ | 15,893,996 | $ | 63,904 | ||||||||
(e) Foreign currency collateral pledged, at cost | $ | — | $ | — | $ | 738,214 | $ | — |
See notes to financial statements
50 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares MSCI Indonesia ETF | iShares MSCI Peru ETF | iShares MSCI Philippines ETF | iShares MSCI Poland ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||||||||||
Unaffiliated(b) | $ | 346,653,581 | $ | 128,255,508 | $ | 183,841,576 | $ | 239,926,396 | ||||||||
Affiliated(c) | 519,000 | 11,000 | 62,000 | 6,945,758 | ||||||||||||
Cash | 3,257 | 34 | 549 | 973 | ||||||||||||
Foreign currency, at value(d) | — | 219,485 | 155,420 | 222,483 | ||||||||||||
Cash pledged: | ||||||||||||||||
Futures contracts | 113,000 | — | 3,000 | — | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 14,408,908 | 4,795,799 | 4,564,950 | 8,898,411 | ||||||||||||
Securities lending income — Affiliated | — | — | — | 5,195 | ||||||||||||
Variation margin on futures contracts | 51,879 | — | 15,784 | — | ||||||||||||
Dividends | 2,293,350 | 30,438 | 42,132 | 511 | ||||||||||||
Tax reclaims | — | — | — | 342,148 | ||||||||||||
Total assets | 364,042,975 | 133,312,264 | 188,685,411 | 256,341,875 | ||||||||||||
LIABILITIES | ||||||||||||||||
Foreign bank overdraft(e) | 69,941 | — | — | — | ||||||||||||
Collateral on securities loaned, at value | — | — | — | 5,652,826 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 13,541,224 | 4,670,302 | 192,435 | 8,523,530 | ||||||||||||
Capital shares redeemed | 313,742 | 115,915 | 108,192 | — | ||||||||||||
Investment advisory fees | 199,328 | 66,235 | 95,495 | 130,859 | ||||||||||||
Professional fees | — | — | — | 469,134 | ||||||||||||
Foreign taxes | — | 198 | — | — | ||||||||||||
IRS compliance fee for foreign withholding tax claims | — | — | — | 1,158,447 | ||||||||||||
Total liabilities | 14,124,235 | 4,852,650 | 396,122 | 15,934,796 | ||||||||||||
NET ASSETS | $ | 349,918,740 | $ | 128,459,614 | $ | 188,289,289 | $ | 240,407,079 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 615,659,777 | $ | 295,412,667 | $ | 296,877,132 | $ | 452,403,752 | ||||||||
Accumulated loss | (265,741,037 | ) | (166,953,053 | ) | (108,587,843 | ) | (211,996,673 | ) | ||||||||
NET ASSETS | $ | 349,918,740 | $ | 128,459,614 | $ | 188,289,289 | $ | 240,407,079 | ||||||||
Shares outstanding | 16,300,000 | 4,100,000 | 6,350,000 | 14,250,000 | ||||||||||||
Net asset value | $ | 21.47 | $ | 31.33 | $ | 29.65 | $ | 16.87 | ||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value | None | None | None | None | ||||||||||||
(a) Securities loaned, at value | $ | — | $ | — | $ | — | $ | 5,324,513 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 508,062,556 | $ | 185,840,220 | $ | 239,239,613 | $ | 381,812,880 | ||||||||
(c) Investments, at cost — Affiliated | $ | 519,000 | $ | 11,000 | $ | 62,000 | $ | 6,944,532 | ||||||||
(d) Foreign currency, at cost. | $ | — | $ | 219,487 | $ | 155,703 | $ | 224,840 | ||||||||
(e) Foreign bank overdraft, at cost | $ | 69,941 | $ | — | $ | — | $ | — |
See notes to financial statements
F i n a n c i a l S t a t e m e n t s | 51 |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares MSCI Qatar ETF | iShares MSCI Saudi Arabia ETF | iShares MSCI UAE ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at value: | ||||||||||||
Unaffiliated(a) | $ | 66,470,698 | $ | 650,187,529 | $ | 56,501,023 | ||||||
Affiliated(b) | 193,000 | 311,000 | 53,000 | |||||||||
Cash | 795 | 157 | 319 | |||||||||
Foreign currency, at value(c) | 392,364 | 367,525 | 816 | |||||||||
Cash pledged: | ||||||||||||
Futures contracts | 24,000 | 3,000 | 32,000 | |||||||||
Receivables: | ||||||||||||
Investments sold | 5,386,115 | 35,996,947 | 2,441,550 | |||||||||
Variation margin on futures contracts | — | — | 18,343 | |||||||||
Dividends | 260 | 1,788 | 117 | |||||||||
Total assets | 72,467,232 | 686,867,946 | 59,047,168 | |||||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investments purchased | 1,312,439 | 8,201,740 | 964,443 | |||||||||
Variation margin on futures contracts | 414 | 180 | — | |||||||||
Capital shares redeemed | 4,083,043 | 27,735,196 | — | |||||||||
Investment advisory fees | 33,005 | 418,892 | 26,880 | |||||||||
Total liabilities | 5,428,901 | 36,356,008 | 991,323 | |||||||||
NET ASSETS | $ | 67,038,331 | $ | 650,511,938 | $ | 58,055,845 | ||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 89,280,156 | $ | 753,980,222 | $ | 92,196,473 | ||||||
Accumulated loss | (22,241,825 | ) | (103,468,284 | ) | (34,140,628 | ) | ||||||
NET ASSETS | $ | 67,038,331 | $ | 650,511,938 | $ | 58,055,845 | ||||||
Shares outstanding | 4,100,000 | 23,450,000 | 4,700,000 | |||||||||
Net asset value | $ | 16.35 | $ | 27.74 | $ | 12.35 | ||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
Par value | None | None | None | |||||||||
(a) Investments, at cost — Unaffiliated. | $ | 64,621,614 | $ | 689,165,773 | $ | 62,364,204 | ||||||
(b) Investments, at cost — Affiliated | $ | 193,000 | $ | 311,000 | $ | 53,000 | ||||||
(c) Foreign currency, at cost | $ | 392,394 | $ | 367,440 | $ | 835 |
See notes to financial statements
52 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | ||||||||||||||||
MSCI | ||||||||||||||||
Argentina | iShares | iShares | ||||||||||||||
and Global | MSCI Brazil | iShares | MSCI China | |||||||||||||
Exposure | Small-Cap | MSCI China | Small-Cap | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 91,329 | $ | 1,712,879 | $ | 13,535,875 | $ | 270,202 | ||||||||
Dividends — Affiliated | 361 | 781 | 32,069 | 215 | ||||||||||||
Interest — Unaffiliated | — | — | 1,387 | — | ||||||||||||
Securities lending income — Affiliated — net | 1,937 | — | 1,247,028 | 93,211 | ||||||||||||
Foreign taxes withheld | (6,771 | ) | (128,080 | ) | (821,270 | ) | (763 | ) | ||||||||
Total investment income | 86,856 | 1,585,580 | 13,995,089 | 362,865 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 41,066 | 424,309 | 12,288,626 | 81,153 | ||||||||||||
Total expenses | 41,066 | 424,309 | 12,288,626 | 81,153 | ||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | (24,361 | ) | — | — | — | |||||||||||
Total expenses after fees waived | 16,705 | 424,309 | 12,288,626 | 81,153 | ||||||||||||
Net investment income | 70,151 | 1,161,271 | 1,706,463 | 281,712 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (1,680,769 | ) | (6,006,079 | ) | (93,347,648 | ) | (1,172,179 | ) | ||||||||
Investments — Affiliated | (198 | ) | — | 4,266 | 196 | |||||||||||
In-kind redemptions — Unaffiliated | 950,727 | — | — | — | ||||||||||||
Futures contracts | — | — | (100,299 | ) | — | |||||||||||
Foreign currency transactions | (333 | ) | (125,547 | ) | 36,130 | 639 | ||||||||||
Net realized loss | (730,573 | ) | (6,131,626 | ) | (93,407,551 | ) | (1,171,344 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 1,098,125 | 2,598,345 | 434,099,735 | (638,350 | ) | |||||||||||
Investments — Affiliated | 132 | — | 26,625 | 735 | ||||||||||||
Futures contracts | — | — | (131,842 | ) | — | |||||||||||
Foreign currency translations | (53 | ) | (36,768 | ) | (51,546 | ) | (166 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 1,098,204 | 2,561,577 | 433,942,972 | (637,781 | ) | |||||||||||
Net realized and unrealized gain (loss) | 367,631 | (3,570,049 | ) | 340,535,421 | (1,809,125 | ) | ||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 437,782 | $ | (2,408,778 | ) | $ | 342,241,884 | $ | (1,527,413 | ) |
See notes to financial statements
F i n a n c i a l S t a t e m e n t s | 53 |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares | iShares | |||||||||||||||
MSCI | iShares | MSCI | iShares | |||||||||||||
Indonesia | MSCI Peru | Philippines | MSCI Poland | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 4,142,339 | $ | 1,289,113 | (a) | $ | 672,170 | $ | 341,576 | |||||||
Dividends — Affiliated | 1,688 | 1,508 | 1,136 | 1,995 | ||||||||||||
Interest — Unaffiliated | 52 | 33 | 41 | — | ||||||||||||
Securities lending income — Affiliated — net | — | — | — | 22,902 | ||||||||||||
Other income — Unaffiliated | — | — | — | 173,383 | ||||||||||||
Foreign taxes withheld | (780,906 | ) | (41,232 | ) | (201,651 | ) | (51,280 | ) | ||||||||
Foreign withholding tax claims | — | — | — | 4,177,095 | ||||||||||||
IRS Compliance fee for foreign withholding tax claims | — | — | — | (1,158,446 | ) | |||||||||||
Other foreign taxes | — | (126 | ) | — | — | |||||||||||
Total investment income | 3,363,173 | 1,249,296 | 471,696 | 3,507,225 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 1,354,823 | 440,110 | 661,999 | 813,689 | ||||||||||||
Professional fees | — | — | — | 469,134 | ||||||||||||
Total expenses | 1,354,823 | 440,110 | 661,999 | 1,282,823 | ||||||||||||
Net investment income (loss) | 2,008,350 | 809,186 | (190,303 | ) | 2,224,402 | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (18,863,743 | ) | (17,726,747 | ) | (8,918,644 | ) | (15,931,602 | ) | ||||||||
Investments — Affiliated | — | — | — | 49 | ||||||||||||
In-kind redemptions — Unaffiliated | 7,109,780 | 3,500,729 | 233,977 | 2,453,980 | ||||||||||||
Futures contracts | 8,192 | 15,145 | (76,102 | ) | — | |||||||||||
Foreign currency transactions | 16,852 | 11,558 | (11,066 | ) | (154,042 | ) | ||||||||||
Net realized loss | (11,728,919 | ) | (14,199,315 | ) | (8,771,835 | ) | (13,631,615 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (55,406,083 | ) | 3,440,887 | (24,346,153 | ) | (38,405,563 | ) | |||||||||
Investments — Affiliated | — | — | — | 838 | ||||||||||||
Futures contracts | 51,861 | — | (42,959 | ) | — | |||||||||||
Foreign currency translations | (35,374 | ) | (6,846 | ) | (7,365 | ) | 48,088 | |||||||||
Net change in unrealized appreciation (depreciation) | (55,389,596 | ) | 3,434,041 | (24,396,477 | ) | (38,356,637 | ) | |||||||||
Net realized and unrealized loss | (67,118,515 | ) | (10,765,274 | ) | (33,168,312 | ) | (51,988,252 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (65,110,165 | ) | $ | (9,956,088 | ) | $ | (33,358,615 | ) | $ | (49,763,850 | ) |
(a) Includes $419,913 related to a special distribution from Credicorp Ltd.
See notes to financial statements
54 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares | iShares | iShares | ||||||||||
MSCI Qatar | MSCI Saudi | MSCI UAE | ||||||||||
ETF | Arabia ETF | ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Unaffiliated | $ | 988,521 | $ | 3,987,976 | $ | — | ||||||
Dividends — Affiliated | 1,664 | 7,288 | 683 | |||||||||
Interest — Unaffiliated | — | 38 | 7 | |||||||||
Securities lending income — Affiliated — net | — | — | 6,552 | |||||||||
Foreign taxes withheld | — | (72,945 | ) | — | ||||||||
Total investment income | 990,185 | 3,922,357 | 7,242 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees | 185,632 | 2,688,262 | 158,786 | |||||||||
Total expenses | 185,632 | 2,688,262 | 158,786 | |||||||||
Net investment income (loss) | 804,553 | 1,234,095 | (151,544 | ) | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | (1,238,620 | ) | (26,647,087 | ) | (862,859 | ) | ||||||
Investments — Affiliated | — | — | (173 | ) | ||||||||
Futures contracts | 4,984 | 4,306 | 1,042 | |||||||||
Foreign currency transactions | (11,694 | ) | (99,029 | ) | (2,751 | ) | ||||||
Net realized loss | (1,245,330 | ) | (26,741,810 | ) | (864,741 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated | (4,679,479 | ) | (25,768,069 | ) | (6,658,803 | ) | ||||||
Investments — Affiliated | — | — | 85 | |||||||||
Futures contracts | (17,632 | ) | (4,816 | ) | 5,674 | |||||||
Foreign currency translations | (1,173 | ) | 14,858 | (9 | ) | |||||||
Net change in unrealized appreciation (depreciation) | (4,698,284 | ) | (25,758,027 | ) | (6,653,053 | ) | ||||||
Net realized and unrealized loss | (5,943,614 | ) | (52,499,837 | ) | (7,517,794 | ) | ||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (5,139,061 | ) | $ | (51,265,742 | ) | $ | (7,669,338 | ) |
See notes to financial statements
F i n a n c i a l S t a t e m e n t s | 55 |
Statements of Changes in Net Assets
iShares | ||||||||||||||||
MSCI Argentina and Global Exposure | iShares | |||||||||||||||
ETF | MSCI Brazil Small-Cap ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 70,151 | $ | 247,709 | $ | 1,161,271 | $ | 2,563,358 | ||||||||
Net realized gain (loss) | (730,573 | ) | 102,552 | (6,131,626 | ) | (354,868 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 1,098,204 | 1,513,410 | 2,561,577 | 21,876,419 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 437,782 | 1,863,671 | (2,408,778 | ) | 24,084,909 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (61,332 | ) | (234,874 | ) | (1,144,807 | ) | (2,897,525 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 4,708,342 | (15,127,749 | ) | 67,497,902 | 36,721,226 | |||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 5,084,792 | (13,498,952 | ) | 63,944,317 | 57,908,610 | |||||||||||
Beginning of period | 8,704,387 | 22,203,339 | 106,587,726 | 48,679,116 | ||||||||||||
End of period | $ | 13,789,179 | $ | 8,704,387 | $ | 170,532,043 | $ | 106,587,726 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
56 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI China ETF | MSCI China Small-Cap ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 1,706,463 | $ | 65,060,194 | $ | 281,712 | $ | 677,926 | ||||||||
Net realized gain (loss) | (93,407,551 | ) | 22,708,387 | (1,171,344 | ) | (2,861,157 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 433,942,972 | (290,616,749 | ) | (637,781 | ) | (1,455,565 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 342,241,884 | (202,848,168 | ) | (1,527,413 | ) | (3,638,796 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (39,746,404 | ) | (61,071,962 | ) | (336,227 | ) | (1,106,757 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 899,253,064 | 408,703,619 | 31,937,042 | (2,000,973 | ) | |||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 1,201,748,544 | 144,783,489 | 30,073,402 | (6,746,526 | ) | |||||||||||
Beginning of period | 3,588,926,604 | 3,444,143,115 | 19,230,366 | 25,976,892 | ||||||||||||
End of period | $ | 4,790,675,148 | $ | 3,588,926,604 | $ | 49,303,768 | $ | 19,230,366 |
(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 | 57 |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI Indonesia ETF | MSCI Peru ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 2,008,350 | $ | 8,327,588 | $ | 809,186 | $ | 3,783,287 | ||||||||
Net realized gain (loss) | (11,728,919 | ) | 2,513,103 | (14,199,315 | ) | (6,286,067 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (55,389,596 | ) | 10,198,818 | 3,434,041 | (10,998,569 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | (65,110,165 | ) | 21,039,509 | (9,956,088 | ) | (13,501,349 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (927,814 | ) | (8,309,025 | ) | (1,300,852 | ) | (3,743,870 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 13,771,610 | (25,303,436 | ) | (24,021,359 | ) | 16,266,516 | ||||||||||
NET ASSETS | ||||||||||||||||
Total decrease in net assets | (52,266,369 | ) | (12,572,952 | ) | (35,278,299 | ) | (978,703 | ) | ||||||||
Beginning of period | 402,185,109 | 414,758,061 | 163,737,913 | 164,716,616 | ||||||||||||
End of period | $ | 349,918,740 | $ | 402,185,109 | $ | 128,459,614 | $ | 163,737,913 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
58 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI Philippines ETF | MSCI Poland ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | (190,303 | ) | $ | 1,696,228 | $ | 2,224,402 | $ | 7,720,897 | |||||||
Net realized loss | (8,771,835 | ) | (1,622,144 | ) | (13,631,615 | ) | (4,092,949 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (24,396,477 | ) | 4,910,391 | (38,356,637 | ) | (49,504,656 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (33,358,615 | ) | 4,984,475 | (49,763,850 | ) | (45,876,708 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (220,455 | ) | (1,504,657 | ) | (6,377,039 | ) | (4,171,810 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 4,840,190 | 41,535,441 | 35,970,135 | 46,867,887 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (28,738,880 | ) | 45,015,259 | (20,170,754 | ) | (3,180,631 | ) | |||||||||
Beginning of period | 217,028,169 | 172,012,910 | 260,577,833 | 263,758,464 | ||||||||||||
End of period | $ | 188,289,289 | $ | 217,028,169 | $ | 240,407,079 | $ | 260,577,833 |
(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 | 59 |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI Qatar ETF | MSCI Saudi Arabia ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 804,553 | $ | 1,871,129 | $ | 1,234,095 | $ | 15,346,403 | ||||||||
Net realized loss | (1,245,330 | ) | (2,010,260 | ) | (26,741,810 | ) | (34,925,017 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (4,698,284 | ) | 1,028,899 | (25,758,027 | ) | (20,559,145 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (5,139,061 | ) | 889,768 | (51,265,742 | ) | (40,137,759 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | — | (2,284,837 | ) | (9,018,020 | ) | (10,631,559 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 21,601,820 | (3,282,765 | ) | 64,204,472 | 440,261,807 | |||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 16,462,759 | (4,677,834 | ) | 3,920,710 | 389,492,489 | |||||||||||
Beginning of period | 50,575,572 | 55,253,406 | 646,591,228 | 257,098,739 | ||||||||||||
End of period | $ | 67,038,331 | $ | 50,575,572 | $ | 650,511,938 | $ | 646,591,228 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
60 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares | ||||||||
MSCI UAE ETF | ||||||||
Six Months | ||||||||
Ended | ||||||||
02/29/20 | Year Ended | |||||||
(unaudited) | 08/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | (151,544 | ) | $ | 1,740,571 | |||
Net realized loss | (864,741 | ) | (5,005,573 | ) | ||||
Net change in unrealized appreciation (depreciation) | (6,653,053 | ) | 1,166,670 | |||||
Net decrease in net assets resulting from operations | (7,669,338 | ) | (2,098,332 | ) | ||||
�� | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | — | (1,837,321 | ) | |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions. | 19,918,088 | 10,724,666 | ||||||
NET ASSETS | ||||||||
Total increase in net assets | 12,248,750 | 6,789,013 | ||||||
Beginning of period | 45,807,095 | 39,018,082 | ||||||
End of period | $ | 58,055,845 | $ | 45,807,095 |
(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 | 61 |
(For a share outstanding throughout each period)
iShares MSCI Argentina and Global Exposure ETF | ||||||||||||||||
Six Months Ended | Period From | |||||||||||||||
02/29/20 | Year Ended | Year Ended | 04/25/17(a) | |||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | to 08/31/17 | |||||||||||||
Net asset value, beginning of period | $ | 19.34 | $ | 22.20 | $ | 25.71 | $ | 25.23 | ||||||||
Net investment income(b) | 0.10 | 0.27 | 0.63 | 0.03 | ||||||||||||
Net realized and unrealized gain (loss)(c) | 0.34 | (2.88 | ) | (3.61 | ) | 0.46 | ||||||||||
Net increase (decrease) from investment operations | 0.44 | (2.61 | ) | (2.98 | ) | 0.49 | ||||||||||
Distributions(d) | ||||||||||||||||
From net investment income | (0.08 | ) | (0.25 | ) | (0.53 | ) | (0.01 | ) | ||||||||
Total distributions | (0.08 | ) | (0.25 | ) | (0.53 | ) | (0.01 | ) | ||||||||
Net asset value, end of period | $ | 19.70 | $ | 19.34 | $ | 22.20 | $ | 25.71 | ||||||||
Total Return | ||||||||||||||||
Based on net asset value | 2.25 | %(e) | (12.05 | )% | (12.00 | )% | 2.00 | %(e) | ||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.59 | %(f) | 0.59 | % | 0.59 | % | 0.59 | %(f) | ||||||||
Total expenses after fees waived | 0.24 | %(f) | 0.45 | % | 0.00 | % | 0.00 | % | ||||||||
Net investment income | 1.01 | %(f) | 1.14 | % | 2.22 | % | 0.34 | %(f) | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 13,789 | $ | 8,704 | $ | 22,203 | $ | 15,428 | ||||||||
Portfolio turnover rate(g) | 26 | %(e) | 27 | % | 42 | % | 17 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
62 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Brazil Small-Cap ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.92 | $ | 11.87 | $ | 16.19 | $ | 11.51 | $ | 8.12 | $ | 21.00 | ||||||||||||
Net investment income(a) | 0.15 | 0.50 | 0.40 | 0.36 | 0.24 | 0.37 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 1.03 | 5.15 | (4.01 | ) | 4.74 | 3.35 | (12.85 | ) | ||||||||||||||||
Net increase (decrease) from investment operations | 1.18 | 5.65 | (3.61 | ) | 5.10 | 3.59 | (12.48 | ) | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.15 | ) | (0.60 | ) | (0.71 | ) | (0.42 | ) | (0.20 | ) | (0.40 | ) | ||||||||||||
Return of capital | — | — | — | — | — | (0.00 | )(d) | |||||||||||||||||
Total distributions | (0.15 | ) | (0.60 | ) | (0.71 | ) | (0.42 | ) | (0.20 | ) | (0.40 | ) | ||||||||||||
Net asset value, end of period | $ | 17.95 | $ | 16.92 | $ | 11.87 | $ | 16.19 | $ | 11.51 | $ | 8.12 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 6.88 | %(e) | 48.35 | % | (22.95 | )% | 45.92 | % | 45.17 | % | (60.01 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(f) | 0.59 | % | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | ||||||||||||
Net investment income | 1.58 | %(f) | 3.26 | % | 2.55 | % | 2.76 | % | 2.77 | % | 2.87 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 170,532 | $ | 106,588 | $ | 48,679 | $ | 62,316 | $ | 50,087 | $ | 27,189 | ||||||||||||
Portfolio turnover rate(g) | 23 | %(e)(h) | 47 | %(h) | 67 | %(h) | 58 | %(h) | 38 | %(h) | 172 | %(h) | ||||||||||||
(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) | Rounds to less than $0.01. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations"). |
(h) Portfolio turnover rate excluding cash creations was as follows: | 10 | % | 30 | % | 25 | % | 26 | % | 28 | % | 39 | % |
See notes to financial statements.
F i n a n c i a l H i g h l i g h t s | 63 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI China ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 56.43 | $ | 60.85 | $ | 62.06 | $ | 46.87 | $ | 44.49 | $ | 50.34 | ||||||||||||
Net investment income(a) | 0.02 | 0.95 | 1.05 | 0.86 | 0.97 | 1.41 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 5.54 | (4.49 | ) | (1.10 | ) | 14.94 | 2.34 | (6.21 | ) | |||||||||||||||
Net increase (decrease) from investment operations | 5.56 | (3.54 | ) | (0.05 | ) | 15.80 | 3.31 | (4.80 | ) | |||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.57 | ) | (0.88 | ) | (1.16 | ) | (0.61 | ) | (0.93 | ) | (1.05 | ) | ||||||||||||
Total distributions | (0.57 | ) | (0.88 | ) | (1.16 | ) | (0.61 | ) | (0.93 | ) | (1.05 | ) | ||||||||||||
Net asset value, end of period | $ | 61.42 | $ | 56.43 | $ | 60.85 | $ | 62.06 | $ | 46.87 | $ | 44.49 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 9.85 | %(d) | (5.76 | )% | (0.22 | )% | 34.13 | % | 7.63 | % | (9.86 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(e) | 0.59 | % | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | ||||||||||||
Net investment income | 0.08 | %(e) | 1.63 | % | 1.57 | % | 1.70 | % | 2.24 | % | 2.65 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 4,790,675 | $ | 3,588,927 | $ | 3,444,143 | $ | 2,594,247 | $ | 2,099,991 | $ | 1,815,303 | ||||||||||||
Portfolio turnover rate(f) | 9 | %(d) | 14 | % | 14 | % | 6 | % | 27 | % | 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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
64 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI China Small-Cap ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 38.46 | $ | 47.23 | $ | 48.50 | $ | 43.79 | $ | 41.08 | $ | 48.30 | ||||||||||||
Net investment income(a) | 0.40 | 1.39 | 1.51 | 1.22 | 1.25 | 1.24 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 1.19 | (7.78 | ) | (1.14 | ) | 5.21 | 2.99 | (7.18 | ) | |||||||||||||||
Net increase (decrease) from investment operations | 1.59 | (6.39 | ) | 0.37 | 6.43 | 4.24 | (5.94 | ) | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.61 | ) | (2.38 | ) | (1.64 | ) | (1.72 | ) | (1.53 | ) | (1.28 | ) | ||||||||||||
Total distributions | (0.61 | ) | (2.38 | ) | (1.64 | ) | (1.72 | ) | (1.53 | ) | (1.28 | ) | ||||||||||||
Net asset value, end of period | $ | 39.44 | $ | 38.46 | $ | 47.23 | $ | 48.50 | $ | 43.79 | $ | 41.08 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 4.13 | %(d) | (13.60 | )% | 0.58 | % | 15.29 | % | 10.50 | % | (12.94 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(e) | 0.59 | % | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | ||||||||||||
Net investment income | 2.01 | %(e) | 3.26 | % | 2.91 | % | 2.72 | % | 2.95 | % | 2.44 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 49,304 | $ | 19,230 | $ | 25,977 | $ | 21,825 | $ | 19,706 | $ | 24,646 | ||||||||||||
Portfolio turnover rate(f) | 15 | %(d) | 38 | % | 63 | % | 26 | % | 31 | % | 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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements
F i n a n c i a l H i g h l i g h t s | 65 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Indonesia ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.22 | $ | 23.57 | $ | 26.89 | $ | 25.82 | $ | 20.18 | $ | 28.54 | ||||||||||||
Net investment income(a) | 0.11 | 0.41 | 0.43 | 0.31 | 0.34 | 0.31 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (3.81 | ) | 1.70 | (3.27 | ) | 1.11 | 5.59 | (8.29 | ) | |||||||||||||||
Net increase (decrease) from investment operations | (3.70 | ) | 2.11 | (2.84 | ) | 1.42 | 5.93 | (7.98 | ) | |||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.05 | ) | (0.46 | ) | (0.48 | ) | (0.35 | ) | (0.27 | ) | (0.38 | ) | ||||||||||||
Return of capital | — | — | — | — | (0.02 | ) | — | |||||||||||||||||
Total distributions | (0.05 | ) | (0.46 | ) | (0.48 | ) | (0.35 | ) | (0.29 | ) | (0.38 | ) | ||||||||||||
Net asset value, end of period | $ | 21.47 | $ | 25.22 | $ | 23.57 | $ | 26.89 | $ | 25.82 | $ | 20.18 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (14.75 | )%(d) | 9.00 | % | (10.67 | )% | 5.53 | % | 29.59 | % | (28.13 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(e) | 0.59 | % | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | ||||||||||||
Net investment income | 0.86 | %(e) | 1.64 | % | 1.63 | % | 1.22 | % | 1.47 | % | 1.16 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 349,919 | $ | 402,185 | $ | 414,758 | $ | 501,411 | $ | 702,198 | $ | 268,381 | ||||||||||||
Portfolio turnover rate(f) | 5 | %(d) | 12 | % | 7 | % | 6 | % | 5 | % | 4 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
66 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Peru ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.11 | $ | 37.44 | $ | 37.54 | $ | 32.79 | $ | 23.09 | $ | 36.60 | ||||||||||||
Net investment income(a) | 0.19 | (b) | 0.85 | 1.09 | 0.46 | 0.33 | 0.36 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (2.64 | ) | (3.36 | ) | (0.06 | ) | 4.99 | 9.73 | (13.48 | ) | ||||||||||||||
Net increase (decrease) from investment operations | (2.45 | ) | (2.51 | ) | 1.03 | 5.45 | 10.06 | (13.12 | ) | |||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.33 | ) | (0.82 | ) | (1.13 | ) | (0.70 | ) | (0.36 | ) | (0.39 | ) | ||||||||||||
Total distributions | (0.33 | ) | (0.82 | ) | (1.13 | ) | (0.70 | ) | (0.36 | ) | (0.39 | ) | ||||||||||||
Net asset value, end of period | $ | 31.33 | $ | 34.11 | $ | 37.44 | $ | 37.54 | $ | 32.79 | $ | 23.09 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (7.27 | )%(e) | (6.75 | )% | 2.60 | % | 16.89 | % | 44.13 | % | (36.15 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(f) | 0.59 | % | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | ||||||||||||
Total expenses after fees waived | 0.58 | %(f) | 0.59 | % | 0.59 | % | 0.62 | % | 0.63 | % | 0.61 | % | ||||||||||||
Net investment income | 1.07 | %(b)(f) | 2.33 | % | 2.65 | % | 1.37 | % | 1.23 | % | 1.15 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 128,460 | $ | 163,738 | $ | 164,717 | $ | 170,794 | $ | 218,026 | $ | 131,595 | ||||||||||||
Portfolio turnover rate(g) | 11 | %(e) | 18 | % | 11 | % | 13 | % | 22 | % | 21 | % |
(a) | Based on average shares outstanding. |
(b) | Includes a one-time special distribution from Credicorp Ltd. Excluding such special distribution, the net investment income would have been $0.09 per share and 0.51% of average |
net assets. | |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share |
transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | 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 | 67 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Philippines ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.45 | $ | 33.08 | $ | 35.88 | $ | 39.19 | $ | 35.50 | $ | 38.19 | ||||||||||||
Net investment income (loss)(a) | (0.03 | ) | 0.28 | 0.14 | 0.15 | 0.21 | 0.34 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | (4.74 | ) | 1.35 | (2.79 | ) | (3.26 | ) | 3.74 | (2.70 | ) | ||||||||||||||
Net increase (decrease) from investment operations | (4.77 | ) | 1.63 | (2.65 | ) | (3.11 | ) | 3.95 | (2.36 | ) | ||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.26 | ) | (0.15 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | ||||||||||||
Total distributions | (0.03 | ) | (0.26 | ) | (0.15 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | ||||||||||||
Net asset value, end of period | $ | 29.65 | $ | 34.45 | $ | 33.08 | $ | 35.88 | $ | 39.19 | $ | 35.50 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (13.85 | )%(d) | 4.93 | % | (7.40 | )% | (7.87 | )% | 11.19 | % | (6.21 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(e) | 0.59 | % | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | ||||||||||||
Net investment income (loss) | (0.17 | )%(e) | 0.83 | % | 0.40 | % | 0.42 | % | 0.58 | % | 0.85 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 188,289 | $ | 217,028 | $ | 172,013 | $ | 172,245 | $ | 317,403 | $ | 266,273 | ||||||||||||
Portfolio turnover rate(f) | 7 | %(d) | 8 | % | 8 | % | 7 | % | 10 | % | 12 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
68 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Poland ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.68 | $ | 24.31 | $ | 27.33 | $ | 18.06 | $ | 21.63 | $ | 28.02 | ||||||||||||
Net investment income(a) | 0.17 | (b) | 0.65 | (b) | 0.33 | (b) | 0.45 | (b) | 0.42 | 0.65 | ||||||||||||||
Net realized and unrealized gain (loss)(c) | (3.49 | ) | (3.93 | ) | (2.90 | ) | 9.25 | (3.70 | ) | (6.25 | ) | |||||||||||||
Net increase (decrease) from investment operations | (3.32 | ) | (3.28 | ) | (2.57 | ) | 9.70 | (3.28 | ) | (5.60 | ) | |||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.49 | ) | (0.35 | ) | (0.45 | ) | (0.43 | ) | (0.29 | ) | (0.79 | ) | ||||||||||||
Total distributions | (0.49 | ) | (0.35 | ) | (0.45 | ) | (0.43 | ) | (0.29 | ) | (0.79 | ) | ||||||||||||
Net asset value, end of period | $ | 16.87 | $ | 20.68 | $ | 24.31 | $ | 27.33 | $ | 18.06 | $ | 21.63 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (16.49 | )%(b)(e) | (13.64 | )%(b) | (9.53 | )%(b) | 54.79 | %(b) | (15.17 | )% | (20.31 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.91 | %(f) | 0.61 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.62 | % | ||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims | 0.58 | %(f) | 0.59 | % | 0.59 | % | 0.62 | % | N/A | N/A | ||||||||||||||
Net investment income | 1.59 | %(b)(f) | 2.81 | %(b) | 1.28 | %(b) | 2.07 | %(b) | 2.24 | % | 2.60 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 240,407 | $ | 260,578 | $ | 263,758 | $ | 363,537 | $ | 179,737 | $ | 193,567 | ||||||||||||
Portfolio turnover rate(g) | 6 | %(e) | 5 | % | 7 | % | 6 | % | 10 | % | 17 | % |
(a) | Based on average shares outstanding. |
(b) | Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended February 29, 2020 and the years ended August 31, 2019, August 31, 2018 and August 31, 2017, respectively: |
• | Net investment income per share by $0.28, $0.05, $0.08 and $0.03, respectively. |
• | Total return by 1.29%, 0.21%, 0.41% and 0.11%, respectively. |
• | Ratio of net investment income to average net assets by 2.65%, 0.22%, 0.32% and 0.14%, respectively. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | 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 | 69 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Qatar ETF | ||||||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 08/01/15(a) | Year Ended | ||||||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | 07/31/15 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.44 | $ | 17.82 | $ | 16.19 | $ | 20.18 | $ | 21.43 | $ | 22.14 | $ | 24.73 | ||||||||||||||
Net investment income (loss) (b) | 0.22 | 0.64 | 0.66 | 0.57 | 0.67 | (0.01 | ) | 0.70 | ||||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (1.31 | ) | (0.26 | ) | 1.71 | (3.90 | ) | (1.24 | ) | (0.70 | ) | (2.44 | ) | |||||||||||||||
Net increase (decrease) from investment operations | (1.09 | ) | 0.38 | 2.37 | (3.33 | ) | (0.57 | ) | (0.71 | ) | (1.74 | ) | ||||||||||||||||
Distributions(d) | ||||||||||||||||||||||||||||
From net investment income | — | (0.76 | ) | (0.74 | ) | (0.66 | ) | (0.66 | ) | — | (0.85 | ) | ||||||||||||||||
From net realized gain | — | — | — | — | (0.02 | ) | — | — | ||||||||||||||||||||
Total distributions | — | (0.76 | ) | (0.74 | ) | (0.66 | ) | (0.68 | ) | — | (0.85 | ) | ||||||||||||||||
Net asset value, end of period | $ | 16.35 | $ | 17.44 | $ | 17.82 | $ | 16.19 | $ | 20.18 | $ | 21.43 | $ | 22.14 | ||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Based on net asset value | (6.25 | )%(e) | 1.98 | % | 14.96 | % | (16.52 | )% | (2.32 | )% | (3.21 | )%(e) | (7.10 | )% | ||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||
Total expenses | 0.58 | %(f) | 0.59 | % | 0.59 | % | 0.62 | % | 0.64 | % | 0.63 | %(f) | 0.62 | % | ||||||||||||||
Net investment income (loss) | 2.51 | %(f) | 3.48 | % | 4.09 | % | 3.05 | % | 3.44 | % | (0.63 | )%(f) | 2.94 | % | ||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 67,038 | $ | 50,576 | $ | 55,253 | $ | 49,390 | $ | 53,486 | $ | 45,000 | $ | 47,590 | ||||||||||||||
Portfolio turnover rate(g) | 13 | %(e)(h) | 33 | %(h) | 58 | %(h) | 47 | %(h) | 29 | %(h) | 5 | %(e)(h) | 85 | %(h) |
(a) | The Fund's fiscal year-end was changed from July 31 to August 31. |
(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) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations"). |
(h) | Portfolio turnover rate excluding cash creations was as follows: | 5 | % | 23 | % | 22 | % | 20 | % | 12 | % | 2 | % | 37 | % |
See notes to financial statements.
70 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Saudi Arabia ETF | ||||||||||||||||||||
Six Months Ended 02/29/20 | Year Ended | Year Ended | Year Ended | Period From 09/16/15(a) | ||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | to 08/31/16 | ||||||||||||||||
Net asset value, beginning of period | $ | 30.21 | $ | 29.72 | $ | 26.15 | $ | 21.52 | $ | 24.92 | ||||||||||
Net investment income(b) | 0.05 | 1.11 | 1.28 | 0.91 | 0.8 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | (2.15 | ) | 0.12 | 2.92 | 4.24 | (3.69 | ) | |||||||||||||
Net increase (decrease) from investment operations | (2.10 | ) | 1.23 | 4.20 | 5.15 | (2.88 | ) | |||||||||||||
Distributions(d) | ||||||||||||||||||||
From net investment income | (0.37 | ) | (0.74 | ) | (0.63 | ) | (0.52 | ) | (0.52 | ) | ||||||||||
Total distributions | (0.37 | ) | (0.74 | ) | (0.63 | ) | (0.52 | ) | (0.52 | ) | ||||||||||
Net asset value, end of period | $ | 27.74 | $ | 30.21 | $ | 29.72 | $ | 26.15 | $ | 21.52 | ||||||||||
Total Return Based on net asset value | (7.09 | )%(e) | 4.14 | % | 16.23 | % | 24.06 | % | (11.64 | )%(e) | ||||||||||
Ratios to Average Net Assets Total expenses | 0.74 | %(f) | 0.74 | % | 0.74 | % | 0.74 | % | 0.74 | %(f) | ||||||||||
Net investment income | 0.34 | %(f) | 3.46 | % | 4.31 | % | 3.68 | % | 3.71 | %(f) | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 650,512 | $ | 646,591 | $ | 257,099 | $ | 18,306 | $ | 4,305 | ||||||||||
Portfolio turnover rate(g) | 23 | %(e)(h) | 82 | %(h) | 20 | %(h) | 21 | %(h) | 17 | %(e)(h) |
(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) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations"). |
(h) Portfolio turnover rate excluding cash creations was as follows: | 8 | % | 14 | % | 10 | % | 21 | % | 17 | % |
See notes to financial statements.
Financial Highlights | 71 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI UAE ETF | ||||||||||||||||||||||||||||
Six Months Ended 02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Period From 08/01/15(a) | Year Ended | ||||||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | 07/31/15 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.09 | $ | 15.61 | $ | 17.74 | $ | 17.15 | $ | 18.34 | $ | 20.46 | $ | 24.00 | ||||||||||||||
Net investment income (loss)(b) | (0.04 | ) | 0.57 | 0.70 | 0.50 | 0.68 | (c) | (0.01 | ) | 1.01 | ||||||||||||||||||
Net realized and unrealized gain (loss)(d) | (1.70 | ) | (1.54 | ) | (2.04 | ) | 0.72 | (1.19 | ) | (2.11 | ) | (3.56 | ) | |||||||||||||||
Net increase (decrease) from investment operations | (1.74 | ) | (0.97 | ) | (1.34 | ) | 1.22 | (0.51 | ) | (2.12 | ) | (2.55 | ) | |||||||||||||||
Distributions(e) | ||||||||||||||||||||||||||||
From net investment income | — | (0.55 | ) | (0.79 | ) | (0.63 | ) | (0.68 | ) | — | (0.99 | ) | ||||||||||||||||
Total distributions | — | (0.55 | ) | (0.79 | ) | (0.63 | ) | (0.68 | ) | — | (0.99 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.35 | $ | 14.09 | $ | 15.61 | $ | 17.74 | $ | 17.15 | $ | 18.34 | $ | 20.46 | ||||||||||||||
Total Return Based on net asset value | (12.41 | )%(f) | (5.95 | )% | (7.55 | )% | 7.33 | % | (2.66 | )% | (10.36 | )%(f) | (10.33 | )% | ||||||||||||||
Ratios to Average Net Assets Total expenses | 0.58 | %(g) | 0.59 | % | 0.59 | % | 0.62 | % | 0.64 | % | 0.63 | %(g) | 0.62 | % | ||||||||||||||
Net investment income (loss) | (0.55 | )%(g) | 3.95 | % | 4.18 | % | 2.94 | % | 4.09 | %(c) | (0.76 | )%(g) | 4.81 | % | ||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 58,056 | $ | 45,807 | $ | 39,018 | $ | 49,663 | $ | 41,156 | $ | 31,172 | $ | 33,756 | ||||||||||||||
Portfolio turnover rate(h) | 9% | (f) | 55 | % | 33 | % | 33 | % | 55 | % | 1 | %(f) | 72 | % |
(a) | The Fund's fiscal year-end was changed from July 31 to August 31. |
(b) | Based on average shares outstanding. |
(c) | Includes a special distribution from Mediclinic International PLC. Excluding such special distribution, the net investment income would have been $0.52 per share and 3.11% of average net assets. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
72 | 2 0 2 0 I S h a r e s S e m i - A n 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”):
Diversification | |
iShares ETF | Classification |
MSCI Argentina and Global Exposure | Non-diversified |
MSCI Brazil Small-Cap | Diversified |
MSCI China | Non-diversified |
MSCI China Small-Cap | Diversified |
MSCI Indonesia | Non-diversified |
MSCI Peru | Non-diversified |
MSCI Philippines | Non-diversified |
MSCI Poland | Non-diversified |
MSCI Qatar | Non-diversified |
MSCI Saudi Arabia | Non-diversified |
MSCI UAE | Non-diversified |
2 | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested n 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.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 73 |
Notes to Financial Statements (unaudited) (continued)
3 | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 valu hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level1 – Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financ al 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 securit es traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral
74 | 2 0 2 0 I S h a r e s S e m i - A n 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)
received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
Market Value of | Cash Collateral | Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received(a) | Received | Net Amount | ||||||||||||
MSCI Argentina and Global Exposure | ||||||||||||||||
Barclays Bank PLC | $ | 69,020 | $ | 69,020 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 94,117 | 94,117 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 121,800 | 121,800 | — | — | ||||||||||||
HSBC Bank PLC | 3,592 | 3,592 | — | — | ||||||||||||
JPMorgan Securities LLC | 512,770 | 512,770 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 139,612 | 139,612 | — | — | ||||||||||||
UBS AG | 18,117 | 18,117 | — | — | ||||||||||||
$ | 959,028 | $ | 959,028 | $ | — | $ | — | |||||||||
MSCI China | ||||||||||||||||
Barclays Capital Inc. | $ | 1,038,076 | $ | 1,038,076 | $ | — | $ | — | ||||||||
BNP Paribas Prime Brokerage International Ltd. | 6,964,584 | 6,964,584 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 24,454,612 | 24,454,612 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 8,286,199 | 8,286,199 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 307,968 | 307,968 | — | — | ||||||||||||
Goldman Sachs & Co. | 12,389,852 | 12,389,852 | — | — | ||||||||||||
JPMorgan Securities LLC | 12,432,761 | 12,432,761 | — | — | ||||||||||||
Macquarie Bank Limited | 4,174,909 | 4,174,909 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 78,232,899 | 78,232,899 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 8,040,156 | 8,040,156 | — | — | ||||||||||||
SG Americas Securities LLC | 1,676,218 | 1,670,120 | — | (6,098 | )(b) | |||||||||||
TD Prime Services LLC | 2,457,241 | 2,457,241 | — | — | ||||||||||||
UBS AG | 1,457,814 | 1,457,814 | — | — | ||||||||||||
UBS Securities LLC | 92,346 | 92,346 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 1,334,333 | 1,334,333 | — | — | ||||||||||||
Wells Fargo Securities LLC | 239,122 | 239,122 | — | — | ||||||||||||
$ | 163,579,090 | $ | 163,572,992 | $ | — | $ | (6,098 | ) |
N o t e s t o F i n a n c i a l S t a t e m e n t s | 75 |
Notes to Financial Statements (unaudited) (continued)
Market Value of | Cash Collateral | Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received(a) | Received | Net Amount | ||||||||||||
MSCI China Small-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 97,216 | $ | 97,216 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 189,494 | 189,494 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 10,406 | 10,171 | — | (235 | )(b) | |||||||||||
BofA Securities, Inc. | 216,160 | 216,160 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 212,644 | 212,644 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 690,116 | 690,116 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 4,356 | 4,356 | — | — | ||||||||||||
Goldman Sachs & Co. | 365,212 | 365,212 | — | — | ||||||||||||
JPMorgan Securities LLC | 394,950 | 394,950 | — | — | ||||||||||||
Macquarie Bank Limited | 417,533 | 417,533 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 1,165,115 | 1,165,115 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 84,147 | 84,147 | — | — | ||||||||||||
RBC Capital Markets LLC | 1,632 | 1,632 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 14,295 | 14,257 | — | (38 | )(b) | |||||||||||
SG Americas Securities LLC | 3,808 | 3,808 | — | — | ||||||||||||
UBS AG | 81,442 | 78,901 | — | (2,541 | )(b) | |||||||||||
UBS Securities LLC | 82,688 | 82,688 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 429,484 | 429,484 | — | — | ||||||||||||
$ | 4,460,698 | $ | 4,457,884 | $ | — | $ | (2,814 | ) | ||||||||
MSCI Poland | ||||||||||||||||
Barclays Capital Inc. | $ | 3,194,370 | $ | 3,194,370 | $ | — | $ | — | ||||||||
Deutsche Bank Securities Inc. | 25,795 | 25,795 | — | — | ||||||||||||
Goldman Sachs & Co. | 1,258,225 | 1,258,225 | — | — | ||||||||||||
HSBC Bank PLC | 597,187 | 597,187 | — | — | ||||||||||||
UBS AG | 248,936 | 248,936 | — | — | ||||||||||||
$ | 5,324,513 | $ | 5,324,513 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
(b) | Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 w th cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5 | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
76 | 2 0 2 0 I S h a r e s S e m i - A n 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)
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 iShares MSCI Brazil Small-Cap, iShares MSCI China, iShares MSCI China Small-Cap, iShares MSCI Indonesia, iShares MSCI Peru, iShares MSCI Philippines, iShares MSCI Poland, iShares MSCI Qatar and iShares MSCI UAE ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certa n other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $2 billion | 0.74 | % | ||
Over $2 billion, up to and including $4 billion | 0.69 | |||
Over $4 billion, up to and including $8 billion | 0.64 | |||
Over $8 billion, up to and including $16 billion | 0.57 | |||
Over $16 billion, up to and including $24 billion | 0.51 | |||
Over $24 billion, up to and including $32 billion | 0.48 | |||
Over $32 billion | 0.45 |
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
MSCI Argentina and Global Exposure | 0.59 | % | ||
MSCI Saudi Arabia | 0.74 |
Expense Waivers: For the six months ended ended February 29, 2020, BFA has voluntarily waived a portion of its investment advisory fee for the iShares MSCI Argentina and Global Exposure ETF in the amount of $24,361.
Distributor BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company,
N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% of securities lending income (which excludes collateral investment fees), and the amount reta ned 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 statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
Fees Paid | ||||
iShares ETF | to BTC | |||
MSCI Argentina and Global Exposure . | $ | 611 | ||
MSCI China | 301,265 | |||
MSCI China Small-Cap | 21,161 | |||
MSCI Poland | 5,594 | |||
MSCI UAE | 1,684 |
Officers and Trustees Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 77 |
Notes to Financial Statements (unaudited) (continued)
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 February 29, 2020, 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) | |||||||||
MSCI Argentina and Global Exposure | $ | 1,673,591 | $ | 31,197 | $ | (119,255 | ) | |||||
MSCI China | 9,449,366 | 18,333,410 | (3,843,929 | ) | ||||||||
MSCI China Small-Cap | 370,971 | 1,366,691 | 387,340 | |||||||||
MSCI Peru | 3,162,084 | 121,391 | (159,682 | ) | ||||||||
MSCI Poland | 296,014 | 331,338 | (499,153 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7 | PURCHASES AND SALES |
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Argentina and Global Exposure | $ | 3,822,979 | $ | 3,478,056 | ||||
MSCI Brazil Small-Cap | 99,923,225 | 32,950,760 | ||||||
MSCI China | 980,975,226 | 360,970,887 | ||||||
MSCI China Small-Cap | 3 ,685,239 | 4,202,937 | ||||||
MSCI Indonesia | 20,440,615 | 23,037,760 | ||||||
MSCI Peru | 16,327,760 | 17,598,155 | ||||||
MSCI Philippines | 16,051,043 | 20,778,815 | ||||||
MSCI Poland | 18,303,761 | 17,337,494 | ||||||
MSCI Qatar | 30,253,689 | 8,422,457 | ||||||
MSCI Saudi Arabia | 239,685,453 | 162,243,102 | ||||||
MSCI UAE | 22,384,453 | 5,022,341 |
For the six months ended February 29, 2020, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Argentina and Global Exposure | $ | 7,441,156 | $ | 3,088,943 | ||||
MSCI China | 242,609,749 | — | ||||||
MSCI China Small-Cap | 4,294,316 | — | ||||||
MSCI Indonesia | 148,200,556 | 133,754,314 | ||||||
MSCI Peru | 11,972,612 | 35,249,593 | ||||||
MSCI Philippines | 3 ,612,145 | 26,691,286 | ||||||
MSCI Poland | 62,425,730 | 29,859,218 | ||||||
MSCI UAE | 1,195,157 | — |
8 | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, 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.
78 | 2 0 2 0 I S h a r e s S e m i - A n 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 August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
MSCI Argentina and Global Exposure | $ | 1,078,906 | ||
MSCI Brazil Small-Cap | 39,153,491 | |||
MSCI China | 348,105,488 | |||
MSCI China Small-Cap | 5,306,589 | |||
MSCI Indonesia | 89,133,948 | |||
MSCI Peru | 84,363,720 | |||
MSCI Philippines | 40,562,098 | |||
MSCI Poland | 46,143,102 | |||
MSCI Qatar | 16,394,940 | |||
MSCI Saudi Arabia | 9,348,900 | |||
MSCI UAE | 18,382,114 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Argentina and Global Exposure | $ | 20,930,626 | $ | 1,006,526 | $ | (7,141,720 | ) | $ | (6,135,194 | ) | ||||||
MSCI Brazil Small-Cap | 146,604,995 | 35,720,378 | (12,382,738 | ) | 23,337,640 | |||||||||||
MSCI China | 4,529,885,836 | 948,304,389 | (519,138,727 | ) | 429,165,662 | |||||||||||
MSCI China Small-Cap | 62,520,460 | 2,374,485 | (10,716,457 | ) | (8,341,972 | ) | ||||||||||
MSCI Indonesia | 513,397,705 | 5,606,604 | (171,779,867 | ) | (166,173,263 | ) | ||||||||||
MSCI Peru | 196,335,592 | 6,038,940 | (74,108,024 | ) | (68,069,084 | ) | ||||||||||
MSCI Philippines | 242,873,478 | 1,683,955 | (60,696,816 | ) | (59,012,861 | ) | ||||||||||
MSCI Poland | 401,305,389 | 7,297,016 | (161,730,251 | ) | (154,433,235 | ) | ||||||||||
MSCI Qatar | 71,918,405 | 7,698,637 | (12,970,976 | ) | (5,272,339 | ) | ||||||||||
MSCI Saudi Arabia | 717,249,148 | 24,400,097 | (91,155,532 | ) | (66,755,435 | ) | ||||||||||
MSCI UAE | 71,224,347 | 2,850,961 | (17,515,611 | ) | (14,664,650 | ) |
9 | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
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 | 79 |
Notes to Financial Statements (unaudited) (continued)
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10 | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended | Year Ended | |||||||||||||||
02/29/20 | 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Argentina and Global Exposure | ||||||||||||||||
Shares sold | 400,000 | $ | 8,084,633 | 250,000 | $ | 5,776,563 | ||||||||||
Shares redeemed | (150,000 | ) | (3,376,291 | ) | (800,000 | ) | (20,904,312 | ) | ||||||||
Net increase(decrease) | 250,000 | $ | 4,708,342 | (550,000 | ) | $ | (15,127,749 | ) | ||||||||
MSCI Brazil Small-Cap | ||||||||||||||||
Shares sold | 4,200,000 | $ | 85,534,316 | 3,100,000 | $ | 50,011,103 | ||||||||||
Shares redeemed | (1,000,000 | ) | (18,036,414 | ) | (900,000 | ) | (13,289,877 | ) | ||||||||
Net increase | 3,200,000 | $ | 67,497,902 | 2,200,000 | $ | 36,721,226 | ||||||||||
MSCI China | ||||||||||||||||
Shares sold | 14,400,000 | $ | 899,253,064 | 20,000,000 | $ | 1,135,936,609 | ||||||||||
Shares redeemed | — | — | (13,000,000 | ) | (727,232,990 | ) | ||||||||||
Net increase | 14,400,000 | $ | 899,253,064 | 7,000,000 | $ | 408,703,619 | ||||||||||
MSCI China Small-Cap | ||||||||||||||||
Shares sold | 750,000 | $ | 31,937,042 | 50,000 | $ | 2,197,218 | ||||||||||
Shares redeemed | — | — | (100,000 | ) | (4,198,191 | ) | ||||||||||
Net increase(decrease) | 750,000 | $ | 31,937,042 | (50,000 | ) | $ | (2,000,973 | ) | ||||||||
MSCI Indonesia | ||||||||||||||||
Shares sold | 5,900,000 | $ | 148,919,292 | 18,200,000 | $ | 458,209,128 | ||||||||||
Shares redeemed | (5,550,000 | ) | (135,147,682 | ) | (19,850,000 | ) | (483,512,564 | ) | ||||||||
Net increase(decrease) | 350,000 | $ | 13,771,610 | (1,650,000 | ) | $ | (25,303,436 | ) |
80 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Notes to Financial Statements (unaudited) (continued)
Six Months Ended | Year Ended | |||||||||||||||
02/29/20 | 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Peru | ||||||||||||||||
Shares sold | 350,000 | 12,452,045 | 1,050,000 | $ | 40,297,535 | |||||||||||
Shares redeemed | (1,050,000 | ) | (36,473,404 | ) | (650,000 | ) | (24,031,019 | ) | ||||||||
Net increase(decrease) | (700,000 | ) | (24,021,359 | ) | 400,000 | $ | 16,266,516 | |||||||||
MSCI Philippines | ||||||||||||||||
Shares sold | 900,000 | 31,707,961 | 4,750,000 | $ | 162,031,008 | |||||||||||
Shares redeemed | (850,000 | ) | (26,867,771 | ) | (3,650,000 | ) | (120,495,567 | ) | ||||||||
Net increase | 50,000 | 4,840,190 | 1,100,000 | $ | 41,535,441 | |||||||||||
MSCI Poland | ||||||||||||||||
Shares sold | 3,100,000 | 65,932,557 | 6,550,000 | $ | 153,653,695 | |||||||||||
Shares redeemed | (1,450,000 | ) | (29,962,422 | ) | (4,800,000 | ) | (106,785,808 | ) | ||||||||
Net increase | 1,650,000 | 35,970,135 | 1,750,000 | $ | 46,867,887 | |||||||||||
MSCI Qatar | ||||||||||||||||
Shares sold | 1,550,000 | 27,469,692 | 300,000 | $ | 5,638,836 | |||||||||||
Shares redeemed | (350,000 | ) | (5,867,872 | ) | (500,000 | ) | (8,921,601 | ) | ||||||||
Net increase(decrease) | 1,200,000 | 21,601,820 | (200,000 | ) | $ | (3,282,765 | ) | |||||||||
MSCI Saudi Arabia | ||||||||||||||||
Shares sold | 6,250,000 | 187,842,096 | 22,800,000 | $ | 752,839,074 | |||||||||||
Shares redeemed | (4,200,000 | ) | (123,637,624 | ) | (10,050,000 | ) | (312,577,267 | ) | ||||||||
Net increase | 2,050,000 | 64,204,472 | 12,750,000 | $ | 440,261,807 | |||||||||||
MSCI UAE | ||||||||||||||||
Shares sold | 1,450,000 | 19,918,088 | 1,500,000 | $ | 21,647,115 | |||||||||||
Shares redeemed | — | — | (750,000 | ) | (10,922,449 | ) | ||||||||||
Net increase | 1,450,000 | 19,918,088 | 750,000 | $ | 10,724,666 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11 | FOREIGN WITHHOLDING TAX CLAIMS |
The iShares MSCI Poland ETF has filed claims to recover taxes withheld by Poland on dividend income on the basis that Poland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has received payments on certain of the claims resulting from a favorable court ruling that the imposition of a withholding tax by a European Union member state on dividends paid to a nonresident company, including the Fund, while exempting domestic funds from such taxes results in discriminatory tax withholding contrary to the free movement of capital. The Fund continues to evaluate developments in Poland for potential impacts to the receivables and payables recorded. Polish withholding tax claims received are disclosed in the statement of operations. Professional fees associated with the filing of tax claims in Poland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.
The iShares MSCI Poland ETF, under the approval of the Board, is seeking a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the statement of assets and liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.
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 | 81 |
Notes to Financial Statements (unaudited) (continued)
12 | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
13 | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
82 | 2 0 2 0 I S h a r e s S e m i - A n 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 Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares MSCI Argentina and Global Exposure ETF, iShares MSCI Brazil Small-Cap ETF, iShares MSCI China ETF, iShares MSCI China Small-Cap ETF, iShares MSCI Indonesia ETF, iShares MSCI Peru ETF, iShares MSCI Philippines ETF, iShares MSCI Poland ETF, iShares MSCI Qatar ETF, iShares MSCI Saudi Arabia ETF and iShares MSCI UAE ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classificat on. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projectio . |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
S t a t e m e n t R e g a r d i n g L i q u i d i t y R i s k M a n a g e m e n t P r o g r a m | 83 |
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.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
MSCI Brazil Small-Cap(a) | $ | 0.089256 | $ | — | $ | 0.060392 | $ | 0.149648 | 60 | % | — | % | 40 | % | 100 | % | ||||||||||||||||
MSCI China(a) | 0.568195 | — | 0.006175 | 0.574370 | 99 | — | 1 | 100 | ||||||||||||||||||||||||
MSCI China Small-Cap(a) | 0.555552 | — | 0.055770 | 0.611322 | 91 | — | 9 | 100 | ||||||||||||||||||||||||
MSCI Indonesia(a) | 0.014590 | — | 0.031228 | 0.045818 | 32 | — | 68 | 100 | ||||||||||||||||||||||||
MSCI Peru(a) | 0.282975 | — | 0.042238 | 0.325213 | 87 | — | 13 | 100 | ||||||||||||||||||||||||
MSCI Philippines(a) | 0.016992 | — | 0.014058 | 0.031050 | 55 | — | 45 | 100 | ||||||||||||||||||||||||
MSCI Poland(a) | 0.476968 | — | 0.011694 | 0.488662 | 98 | — | 2 | 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. Areturn 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. |
84 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and informat on 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.
G e n e r a l I n f o r m a t i o n | 85 |
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-806-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report |
(Unaudited) |
iShares Trust
● | iShares MSCI Denmark ETF | EDEN | Cboe BZX |
● | iShares MSCI Finland ETF | EFNL | Cboe BZX |
● | iShares MSCI Germany Small-Cap ETF | EWGS | Cboe BZX |
● | iShares MSCI Ireland ETF | EIRL | NYSE Arca |
● | iShares MSCI New Zealand ETF | ENZL | NASDAQ |
● | iShares MSCI Norway ETF | ENOR | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® MSCI Denmark ETF |
Investment Objective
The iShares MSCI Denmark ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Danish equities, as represented by the MSCI Denmark IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||
Fund NAV | 7.02 | % | 7.79 | % | 6.90 | % | 13.68 | % | 7.79 | % | 39.60 | % | 182.33 | % | |||||||
Fund Market | 8.17 | 8.81 | 7.17 | 13.80 | 8.81 | 41.36 | 184.79 | ||||||||||||||
Index | 7.28 | 8.13 | 7.19 | 13.97 | 8.13 | 41.50 | 188.44 |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||
$ | 1,000.00 | $ | 1,070.20 | $ | 2.73 | $ | 1,000.00 | $ | 1,022.20 | $ | 2.66 | 0.53 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Health Care | 41.2 | % | ||
Industrials | 23.1 | |||
Financials | 9.6 | |||
Consumer Staples | 7.3 | |||
Utilities | 6.7 | |||
Materials | 6.7 | |||
Information Technology | 2.4 | |||
Consumer Discretionary | 2.2 | |||
Energy | 0.8 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
Novo Nordisk A/S, Class B | 22.6 | % | ||
DSV Panalpina A/S | 7.8 | |||
Orsted A/S | 6.7 | |||
Vestas Wind Systems A/S | 6.2 | |||
Coloplast A/S, Class B | 4.7 | |||
Genmab A/S | 4.6 | |||
Carlsberg A/S, Class B | 4.4 | |||
Novozymes A/S, Class B | 4.0 | |||
Danske Bank A/S | 3.7 | |||
Chr Hansen Holding A/S | 2.7 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® MSCI Finland ETF |
Investment Objective
The iShares MSCI Finland ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Finnish equities, as represented by the MSCI Finland IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||
Fund NAV | 0.06 | % | (4.37 | )% | 3.59 | % | 7.56 | % | (4.37 | )% | 19.26 | % | 80.42 | % | |||||||
Fund Market | 1.46 | (2.96 | ) | 3.94 | 7.75 | (2.96 | ) | 21.31 | 83.01 | ||||||||||||
Index | 0.15 | (4.85 | ) | 3.00 | 7.05 | (4.85 | ) | 15.94 | 73.66 |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||
$ | 1,000.00 | $ | 1,000.60 | $ | 2.64 | $ | 1,000.00 | $ | 1,022.20 | $ | 2.66 | 0.53 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Industrials | 26.5 | % | ||
Materials | 20.7 | |||
Information Technology | 15.6 | |||
Financials | 11.7 | |||
Communication Services | 5.9 | |||
Energy | 4.6 | |||
Utilities | 4.3 | |||
Health Care | 3.5 | |||
Consumer Discretionary | 3.2 | |||
Consumer Staples | 3.2 | |||
Real Estate | 0.8 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
Nokia OYJ | 13.1 | % | ||
Kone OYJ, Class B | 11.6 | |||
Sampo OYJ, Class A | 11.0 | |||
UPM-Kymmene OYJ | 9.9 | |||
Neste OYJ | 4.6 | |||
Elisa OYJ | 4.5 | |||
Stora Enso OYJ, Class R | 4.5 | |||
Fortum OYJ | 4.3 | |||
Wartsila OYJ Abp | 3.3 | |||
Kesko OYJ, Class B | 3.2 |
(a) | Excludes money market funds. |
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Fund Summary as of February 29, 2020 | iShares® MSCI Germany Small-Cap ETF |
Investment Objective
The iShares MSCI Germany Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization German equities, as represented by the MSCI Germany Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||
Fund NAV | 1.46 | % | 1.30 | % | 7.75 | % | 11.49 | % | 1.30 | % | 45.27 | % | 141.16 | % | |||||||
Fund Market | 2.68 | 2.42 | 8.08 | 11.62 | 2.42 | 47.46 | 143.58 | ||||||||||||||
Index | 1.52 | 1.02 | 7.55 | 11.32 | 1.02 | 43.88 | 138.35 |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||
$ | 1,000.00 | $ | 1,014.60 | $ | 2.96 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.97 | 0.59 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Industrials | 22.6 | % | ||
Real Estate | 17.0 | |||
Information Technology | 16.0 | |||
Communication Services | 13.7 | |||
Health Care | 9.3 | |||
Consumer Discretionary | 8.5 | |||
Financials | 6.8 | |||
Materials | 3.7 | |||
Consumer Staples | 1.3 | |||
Other (each representing less than 1%) | 1.1 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
LEG Immobilien AG | 6.0 | % | ||
Scout24 AG | 5.1 | |||
OSRAM Licht AG | 3.6 | |||
Rheinmetall AG | 2.9 | |||
Bechtle AG | 2.8 | |||
Nemetschek SE | 2.6 | |||
HelloFresh SE | 2.5 | |||
MorphoSys AG | 2.5 | |||
TAG Immobilien AG | 2.3 | |||
Evotec SE | 2.2 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 5 |
Fund Summary as of February 29, 2020 | iShares® MSCI Ireland ETF |
Investment Objective
The iShares MSCI Ireland ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Irish equities, as represented by the MSCI All Ireland Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||
Fund NAV | 3.59 | % | (0.38 | )% | 2.96 | % | 7.98 | % | (0.38 | )% | 15.72 | % | 112.50 | % | |||||||
Fund Market | 4.14 | 0.62 | 2.96 | 8.05 | 0.62 | 15.71 | 113.98 | ||||||||||||||
Index | 3.73 | (0.30 | ) | 3.31 | 8.41 | (0.30 | ) | 17.68 | 120.95 |
The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.
Index performance through November 26, 2013 reflects the performance of the MSCI Ireland Investable Market Index 25/50. Index performance beginning on November 27, 2013 reflects the performance of the MSCI All Ireland Capped Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||
$ | 1,000.00 | $ | 1,035.90 | $ | 2.53 | $ | 1,000.00 | $ | 1,022.40 | $ | 2.51 | 0.50 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Materials | 27.5 | % | ||
Consumer Staples | 23.6 | |||
Industrials | 17.0 | |||
Consumer Discretionary | 13.1 | |||
Financials | 8.8 | |||
Real Estate | 5.5 | |||
Health Care | 4.4 | |||
Information Technology | 0.1 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
CRH PLC | 21.8 | % | ||
Kerry Group PLC, Class A | 17.1 | |||
Kingspan Group PLC | 6.6 | |||
Flutter Entertainment PLC | 4.6 | |||
Glanbia PLC | 4.6 | |||
Smurfit Kappa Group PLC | 4.5 | |||
ICON PLC | 4.5 | |||
Grafton Group PLC | 4.2 | |||
Bank of Ireland Group PLC | 4.2 | |||
Ryanair Holdings PLC | 3.9 |
(a) | Excludes money market funds. |
6 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® MSCI New Zealand ETF |
Investment Objective
The iShares MSCI New Zealand ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of New Zealand equities, as represented by the MSCI New Zealand IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||
Fund NAV | 4.35 | % | 10.65 | % | 9.51 | % | 12.94 | % | 10.65 | % | 57.50 | % | 217.44 | % | |||||||
Fund Market | 5.08 | 11.13 | 9.58 | 12.94 | 11.13 | 58.01 | 217.68 | ||||||||||||||
Index | 4.59 | 11.08 | 9.95 | 13.39 | 11.08 | 60.72 | 229.86 |
The inception date of the Fund was 9/1/10. The first day of secondary market trading was 9/2/10.
Index performance through February 11, 2013 reflects the performance of the MSCI New Zealand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI New Zealand IMI 25/50 Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||
$ | 1,000.00 | $ | 1,043.50 | $ | 2.54 | $ | 1,000.00 | $ | 1,022.40 | $ | 2.51 | 0.50 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Health Care | 24.2 | % | ||
Utilities | 17.8 | |||
Consumer Staples | 13.8 | |||
Communication Services | 13.1 | |||
Industrials | 10.5 | |||
Real Estate | 9.6 | |||
Materials | 4.8 | |||
Consumer Discretionary | 3.2 | |||
Energy | 2.1 | |||
Information Technology | 0.9 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
Fisher & Paykel Healthcare Corp. Ltd. | 16.3 | % | ||
a2 Milk Co. Ltd. | 13.1 | |||
Spark New Zealand Ltd. | 9.2 | |||
Auckland International Airport Ltd. | 8.4 | |||
Fletcher Building Ltd. | 4.8 | |||
Ryman Healthcare Ltd. | 4.2 | |||
Contact Energy Ltd. | 4.2 | |||
Infratil Ltd. | 3.9 | |||
Mercury NZ Ltd. | 3.9 | |||
Meridian Energy Ltd. | 3.9 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 7 |
Fund Summary as of February 29, 2020 | iShares® MSCI Norway ETF |
Investment Objective
The iShares MSCI Norway ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Norwegian equities, as represented by the MSCI Norway IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||
Fund NAV | (7.94 | )% | (15.33 | )% | (0.19 | )% | 0.17 | % | (15.33 | )% | (0.95 | )% | 1.35 | % | |||||||
Fund Market | (5.97 | ) | (13.85 | ) | 0.19 | 0.38 | (13.85 | ) | 0.96 | 3.14 | |||||||||||
Index | (7.72 | ) | (14.98 | ) | 0.10 | 0.48 | (14.98 | ) | 0.52 | 3.95 |
The inception date of the Fund was 1/23/12. The first day of secondary market trading was 1/24/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||
$ | 1,000.00 | $ | 920.60 | $ | 2.53 | $ | 1,000.00 | $ | 1,022.20 | $ | 2.66 | 0.53 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Financials | 24.7 | % | ||
Energy | 22.0 | |||
Consumer Staples | 19.6 | |||
Communication Services | 12.9 | |||
Materials | 8.7 | |||
Industrials | 6.0 | |||
Real Estate | 2.5 | |||
Information Technology | 1.6 | |||
Utilities | 1.5 | |||
Consumer Discretionary | 0.5 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
DNB ASA | 12.6 | % | ||
Equinor ASA | 12.3 | |||
Telenor ASA | 9.3 | |||
Mowi ASA | 7.3 | |||
Yara International ASA | 4.6 | |||
Orkla ASA | 4.5 | |||
Gjensidige Forsikring ASA | 3.4 | |||
Norsk Hydro ASA | 2.9 | |||
Bakkafrost P/F | 2.7 | |||
Tomra Systems ASA | 2.6 |
(a) | Excludes money market funds. |
8 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Past performance is no guarantee of future results. 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
A b o u t F u n d P e r f o r m a n c e / S h a r e h o l d e r E x p e n s e s | 9 |
Schedule of Investments (unaudited) | iShares® MSCI Denmark ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Air Freight & Logistics — 7.7% | ||||||||
DSV Panalpina A/S | 37,445 | $ | 3,752,674 | |||||
Banks — 6.8% | ||||||||
Danske Bank A/S | 116,661 | 1,794,547 | ||||||
Jyske Bank A/S, Registered(a) | 15,294 | 521,329 | ||||||
Ringkjoebing Landbobank A/S | 6,601 | 434,688 | ||||||
Spar Nord Bank A/S | 30,096 | 253,044 | ||||||
Sydbank A/S | 17,163 | 315,350 | ||||||
3,318,958 | ||||||||
Beverages — 6.1% | ||||||||
Carlsberg A/S, Class B | 16,280 | 2,124,035 | ||||||
Royal Unibrew A/S | 9,799 | 836,850 | ||||||
2,960,885 | ||||||||
Biotechnology — 6.0% | ||||||||
Bavarian Nordic A/S(a)(b) | 10,418 | 339,194 | ||||||
Genmab A/S(a) | 9,944 | 2,224,671 | ||||||
Zealand Pharma A/S(a) | 9,691 | 344,156 | ||||||
2,908,021 | ||||||||
Building Products — 0.9% | ||||||||
Rockwool International A/S, Class B | 2,007 | 460,511 | ||||||
Chemicals — 6.6% | ||||||||
Chr Hansen Holding A/S | 18,549 | 1,311,189 | ||||||
Novozymes A/S, Class B | 38,082 | 1,920,571 | ||||||
3,231,760 | ||||||||
Commercial Services & Supplies — 1.1% | ||||||||
ISS A/S | 31,038 | 552,038 | ||||||
Construction & Engineering — 0.4% | ||||||||
Per Aarsleff Holding A/S | 7,246 | 211,315 | ||||||
Electric Utilities — 6.6% | ||||||||
Orsted A/S(c) | 31,641 | 3,234,259 | ||||||
Electrical Equipment — 6.9% | ||||||||
NKT A/S(a) | 14,235 | 346,922 | ||||||
Vestas Wind Systems A/S | 31,525 | 3,009,244 | ||||||
3,356,166 | ||||||||
Energy Equipment & Services — 0.5% | ||||||||
Maersk Drilling A/S(a) | 5,532 | 242,645 | ||||||
Food Products — 0.6% | ||||||||
Schouw & Co. A/S | 3,859 | 288,156 | ||||||
Health Care Equipment & Supplies — 10.2% | ||||||||
Ambu A/S, Series B(b) | 34,435 | 774,935 | ||||||
Coloplast A/S, Class B | 16,894 | 2,246,855 | ||||||
Demant A/S(a) | 22,451 | 681,468 | ||||||
GN Store Nord A/S | 23,681 | 1,305,333 | ||||||
5,008,591 | ||||||||
Health Care Technology — 0.2% | ||||||||
NNIT A/S(c) | 7,896 | 120,474 | ||||||
Insurance — 2.6% | ||||||||
Alm Brand A/S | 25,084 | 207,032 | ||||||
Topdanmark A/S | 9,510 | 410,138 | ||||||
Tryg A/S | 24,087 | 662,794 | ||||||
1,279,964 |
Security | Shares | Value | ||||||
Machinery — 1.2% | ||||||||
FLSmidth & Co. A/S | 10,070 | $ | 340,149 | |||||
Nilfisk Holding A/S(a) | 11,312 | 231,456 | ||||||
571,605 | ||||||||
Marine — 4.5% | ||||||||
AP Moller - Maersk A/S, Class A | 657 | 617,584 | ||||||
AP Moller - Maersk A/S, Class B, NVS | 1,096 | 1,090,659 | ||||||
D/S Norden A/S | 14,878 | 171,018 | ||||||
Dfds A/S | 9,490 | 326,416 | ||||||
2,205,677 | ||||||||
Oil, Gas & Consumable Fuels — 0.3% | ||||||||
TORM PLC(a) | 19,084 | 144,186 | ||||||
Pharmaceuticals — 24.2% | ||||||||
ALK-Abello A/S(a) | 1,635 | 414,569 | ||||||
H Lundbeck A/S | 14,911 | 510,684 | ||||||
Novo Nordisk A/S, Class B | 187,099 | 10,885,220 | ||||||
11,810,473 | ||||||||
Software — 2.3% | ||||||||
Netcompany Group A/S(a)(c) | 8,282 | 388,830 | ||||||
SimCorp A/S | 7,951 | 757,333 | ||||||
1,146,163 | ||||||||
Specialty Retail — 0.4% | ||||||||
Matas A/S | 23,257 | 191,440 | ||||||
Textiles, Apparel & Luxury Goods — 1.8% | ||||||||
Pandora A/S | 19,710 | 879,876 | ||||||
Tobacco — 0.6% | ||||||||
Scandinavian Tobacco Group A/S(c) | 21,930 | 280,123 | ||||||
Total Common Stocks — 98.5% | ||||||||
(Cost: $52,363,887) | 48,155,960 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 348,208 | 348,452 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 19,000 | 19,000 | ||||||
367,452 | ||||||||
Total Short-Term Investments — 0.8% | ||||||||
(Cost: $367,439) | 367,452 | |||||||
Total Investments in Securities — 99.3% | ||||||||
(Cost: $52,731,326) | 48,523,412 | |||||||
Other Assets, Less Liabilities — 0.7% | 356,857 | |||||||
Net Assets — 100.0% | $ | 48,880,269 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
10 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Denmark ETF |
February 29, 2020
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||
(a) | |||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 622,072 | (273,864 | ) | 348,208 | $ | 348,452 | $ | 6,458 | (b) | $ | 118 | $ | (78 | ) | |||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 17,000 | 2,000 | 19,000 | 19,000 | 156 | — | — | ||||||||||||||||||
$ | 367,452 | $ | 6,614 | $ | 118 | $ | (78 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
OMX COP 25 | 37 | 03/20/20 | $ | 658 | $ | (74,815 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 74,815 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 129,611 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (74,815 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 476,694 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
S c h e d u l e o f I n v e s t m e n t s | 11 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Denmark ETF |
February 29, 2020
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 48,155,960 | $ | — | $ | — | $ | 48,155,960 | ||||||||
Money Market Funds | 367,452 | — | — | 367,452 | ||||||||||||
$ | 48,523,412 | $ | — | $ | — | $ | 48,523,412 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (74,815 | ) | $ | — | $ | — | $ | (74,815 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
12 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI Finland ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.5% | ||||||||
Finnair OYJ | 23,040 | $ | 120,871 | |||||
Auto Components — 2.4% | ||||||||
Nokian Renkaat OYJ | 22,711 | 588,248 | ||||||
Banks — 0.8% | ||||||||
Aktia Bank OYJ | 16,833 | 189,340 | ||||||
�� | ||||||||
Building Products — 0.8% | ||||||||
Uponor OYJ | 15,692 | 204,257 | ||||||
Chemicals — 1.2% | ||||||||
Kemira OYJ | 22,619 | 284,982 | ||||||
Commercial Services & Supplies — 0.8% | ||||||||
Caverion OYJ | 28,310 | 196,534 | ||||||
Communications Equipment — 13.0% | ||||||||
Nokia OYJ | 841,932 | 3,186,005 | ||||||
Construction & Engineering — 1.1% | ||||||||
YIT OYJ(a) | 39,387 | 260,453 | ||||||
Containers & Packaging — 2.9% | ||||||||
Huhtamaki OYJ | 17,213 | 705,254 | ||||||
Diversified Telecommunication Services — 4.5% | ||||||||
Elisa OYJ | 19,459 | 1,110,204 | ||||||
Electric Utilities — 4.3% | ||||||||
Fortum OYJ | 49,857 | 1,055,877 | ||||||
Entertainment — 0.4% | ||||||||
Rovio Entertainment OYJ(a)(b) | 27,644 | 107,615 | ||||||
Food & Staples Retailing — 3.2% | ||||||||
Kesko OYJ, Class B | 11,481 | 773,577 | ||||||
Health Care Providers & Services — 0.5% | ||||||||
Oriola OYJ, Class B | 61,193 | 130,939 | ||||||
Insurance — 10.9% | ||||||||
Sampo OYJ, Class A | 66,038 | 2,675,254 | ||||||
IT Services — 1.9% | ||||||||
TietoEVRY OYJ | 16,523 | 465,358 | ||||||
Machinery — 23.1% | ||||||||
Cargotec OYJ, Class B | 9,164 | 261,721 | ||||||
Kone OYJ, Class B | 50,655 | 2,837,740 | ||||||
Konecranes OYJ | 12,636 | 369,625 | ||||||
Metso OYJ | 19,002 | 609,902 | ||||||
Outotec OYJ(c) | 41,340 | 208,704 | ||||||
Valmet OYJ | 25,181 | 590,819 | ||||||
Wartsila OYJ Abp | 76,922 | 794,590 | ||||||
5,673,101 |
Security | Shares | Value | ||||||
Media — 0.9% | ||||||||
Sanoma OYJ | 20,086 | $ | 226,812 | |||||
Metals & Mining — 1.2% | ||||||||
Outokumpu OYJ | 77,301 | 290,057 | ||||||
Multiline Retail — 0.8% | ||||||||
Tokmanni Group Corp. | 14,363 | 190,902 | ||||||
Oil, Gas & Consumable Fuels — 4.6% | ||||||||
Neste OYJ | 28,563 | 1,118,833 | ||||||
Paper & Forest Products — 15.3% | ||||||||
Metsa Board OYJ | 45,969 | 261,057 | ||||||
Stora Enso OYJ, Class R | 93,363 | 1,098,359 | ||||||
UPM-Kymmene OYJ | 78,981 | 2,405,762 | ||||||
3,765,178 | ||||||||
Pharmaceuticals — 3.0% | ||||||||
Orion OYJ, Class B | 18,536 | 731,973 | ||||||
Real Estate Management & Development — 0.8% | ||||||||
Citycon OYJ | 20,238 | 199,185 | ||||||
Software — 0.6% | ||||||||
F-Secure OYJ(c) | 43,593 | 140,302 | ||||||
Total Common Stocks — 99.5% | ||||||||
(Cost: $29,537,993) | 24,391,111 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 305,709 | 305,923 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 166,000 | 166,000 | ||||||
471,923 | ||||||||
Total Short-Term Investments — 1.9% | ||||||||
(Cost: $471,838) | 471,923 | |||||||
Total Investments in Securities — 101.4% | ||||||||
(Cost: $30,009,831) | 24,863,034 | |||||||
Other Assets, Less Liabilities — (1.4)% | (339,731 | ) | ||||||
Net Assets — 100.0% | $ | 24,523,303 |
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Non-income producing security. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S c h e d u l e o f I n v e s t m e n t s | 13 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Finland ETF |
February 29, 2020
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 532,403 | (226,694 | ) | 305,709 | $ | 305,923 | $ | 1,823 | (b) | $ | 17 | $ | 25 | ||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 165,000 | 1,000 | 166,000 | 166,000 | 1,452 | — | — | ||||||||||||||||||
$ | 471,923 | $ | 3,275 | $ | 17 | $ | 25 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 3 | 03/20/20 | $ | 109 | $ | (10,748 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 10,748 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 1,775 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (10,748 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 50,009 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
14 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Finland ETF |
February 29, 2020
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 24,391,111 | $ | — | $ | — | $ | 24,391,111 | ||||||||
Money Market Funds | 471,923 | — | — | 471,923 | ||||||||||||
$ | 24,863,034 | $ | — | $ | — | $ | 24,863,034 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (10,748 | ) | $ | — | $ | — | $ | (10,748 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 15 |
Schedule of Investments (unaudited) | iShares® MSCI Germany Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.1% | ||||||||
OHB SE | 1,221 | $ | 46,741 | |||||
Auto Components — 0.6% | ||||||||
ElringKlinger AG(a)(b) | 6,628 | 43,974 | ||||||
Leoni AG(a)(b) | 7,244 | 71,615 | ||||||
SAF-Holland SA | 10,579 | 64,145 | ||||||
179,734 | ||||||||
Biotechnology — 2.5% | ||||||||
MorphoSys AG(a) | 7,508 | 792,140 | ||||||
Capital Markets — 1.3% | ||||||||
AURELIUS Equity Opportunities SE & Co. KGaA(b) | 5,092 | 147,551 | ||||||
Deutsche Beteiligungs AG | 2,846 | 101,757 | ||||||
Flatex AG(a) | 2,737 | 82,678 | ||||||
MLP SE | 14,298 | 76,644 | ||||||
408,630 | ||||||||
Chemicals — 1.9% | ||||||||
K+S AG, Registered(b) | 45,007 | 365,346 | ||||||
Wacker Chemie AG | 3,676 | 256,326 | ||||||
621,672 | ||||||||
Commercial Services & Supplies — 1.6% | ||||||||
Befesa SA(c) | 5,235 | 169,349 | ||||||
Bilfinger SE | 6,745 | 200,192 | ||||||
Cewe Stiftung & Co. KGaA | 1,312 | 138,496 | ||||||
508,037 | ||||||||
Communications Equipment — 0.2% | ||||||||
ADVA Optical Networking SE(a) | 10,110 | 66,521 | ||||||
Diversified Financial Services — 2.7% | ||||||||
GRENKE AG(b) | 6,540 | 601,289 | ||||||
Hypoport AG(a) | 763 | 253,112 | ||||||
854,401 | ||||||||
Electrical Equipment — 5.2% | ||||||||
Nordex SE(a)(b) | 16,306 | 190,397 | ||||||
OSRAM Licht AG(a) | 22,774 | 1,167,001 | ||||||
SGL Carbon SE(a)(b) | 14,232 | 53,590 | ||||||
Varta AG(a)(b) | 3,325 | 247,264 | ||||||
1,658,252 | ||||||||
Electronic Equipment, Instruments & Components — 1.6% | ||||||||
Basler AG | 853 | 42,398 | ||||||
Isra Vision AG | 3,593 | 197,534 | ||||||
Jenoptik AG | 12,114 | 283,697 | ||||||
523,629 | ||||||||
Entertainment — 2.6% | ||||||||
Borussia Dortmund GmbH & Co. KGaA | 14,138 | 119,347 | ||||||
CTS Eventim AG & Co. KGaA | 13,545 | 711,788 | ||||||
831,135 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 2.6% | ||||||||
alstria office REIT AG | 35,497 | 668,707 | ||||||
Hamborner REIT AG | 15,078 | 155,770 | ||||||
824,477 | ||||||||
Food Products — 1.3% | ||||||||
KWS Saat SE & Co. KGaA | 2,731 | 152,993 | ||||||
Suedzucker AG | 16,796 | 259,585 | ||||||
412,578 | ||||||||
Health Care Equipment & Supplies — 0.8% | ||||||||
Draegerwerk AG & Co. KGaA. | 732 | 33,489 |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) | ||||||||
Eckert & Ziegler Strahlen- und Medizintechnik AG | 876 | $ | 147,031 | |||||
STRATEC SE | 1,144 | 81,429 | ||||||
261,949 | ||||||||
Health Care Providers & Services — 0.2% | ||||||||
Rhoen-Klinikum AG | 3,903 | 77,170 | ||||||
Health Care Technology — 1.1% | ||||||||
CompuGroup Medical SE | 5,632 | 348,608 | ||||||
Hotels, Restaurants & Leisure — 0.1% | ||||||||
bet-at-home.com AG | 730 | 31,979 | ||||||
Independent Power and Renewable Electricity Producers — 0.7% | ||||||||
Encavis AG | 20,064 | 230,972 | ||||||
Industrial Conglomerates — 3.5% | ||||||||
Indus Holding AG | 4,336 | 154,555 | ||||||
MBB SE | 481 | 30,539 | ||||||
Rheinmetall AG | 10,243 | 926,217 | ||||||
1,111,311 | ||||||||
Insurance — 0.3% | ||||||||
Wuestenrot & Wuerttembergische AG | 5,547 | 104,070 | ||||||
Interactive Media & Services — 5.7% | ||||||||
New Work SE | 664 | 177,966 | ||||||
Scout24 AG(c) | 25,302 | 1,645,344 | ||||||
1,823,310 | ||||||||
Internet & Direct Marketing Retail — 4.7% | ||||||||
HelloFresh SE(a) | 32,904 | 793,348 | ||||||
Rocket Internet SE(a)(c) | 15,954 | 346,813 | ||||||
Shop Apotheke Europe NV(a)(b)(c) | 2,388 | 115,416 | ||||||
Takkt AG | 7,779 | 97,924 | ||||||
zooplus AG(a) | 1,436 | 141,806 | ||||||
1,495,307 | ||||||||
IT Services — 4.1% | ||||||||
Bechtle AG | 6,913 | 902,877 | ||||||
CANCOM SE | 7,416 | 359,895 | ||||||
Datagroup SE(b) | 972 | 58,936 | ||||||
1,321,708 | ||||||||
Life Sciences Tools & Services — 3.9% | ||||||||
Evotec SE(a)(b) | 30,104 | 719,223 | ||||||
Gerresheimer AG | 7,384 | 529,645 | ||||||
1,248,868 | ||||||||
Machinery — 8.0% | ||||||||
Deutz AG | 28,575 | 133,400 | ||||||
Duerr AG | 12,205 | 377,395 | ||||||
Heidelberger Druckmaschinen AG(a)(b) | 67,394 | 58,927 | ||||||
JOST Werke AG(c) | 3,523 | 118,417 | ||||||
Koenig & Bauer AG(b) | 3,338 | 79,566 | ||||||
Krones AG | 3,711 | 230,721 | ||||||
Norma Group SE | 7,483 | 244,125 | ||||||
Pfeiffer Vacuum Technology AG | 1,166 | 174,316 | ||||||
Rational AG | 802 | 535,181 | ||||||
Stabilus SA | 5,808 | 309,293 | ||||||
Vossloh AG | 2,291 | 90,092 | ||||||
Wacker Neuson SE(b) | 6,648 | 92,084 | ||||||
Washtec AG | 2,644 | 140,278 | ||||||
2,583,795 | ||||||||
Media — 3.6% | ||||||||
ProSiebenSat.1 Media SE | 54,790 | 660,219 |
16 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Germany Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
Stroeer SE & Co. KGaA | 6,646 | $ | 488,755 | |||||
1,148,974 | ||||||||
Metals & Mining — 1.6% | ||||||||
Aurubis AG | 7,929 | 372,248 | ||||||
Salzgitter AG(b) | 9,236 | 151,520 | ||||||
523,768 | ||||||||
Oil, Gas & Consumable Fuels — 0.4% | ||||||||
CropEnergies AG | 6,212 | 63,527 | ||||||
VERBIO Vereinigte BioEnergie AG | 5,137 | 53,719 | ||||||
117,246 | ||||||||
Pharmaceuticals — 0.4% | ||||||||
Dermapharm Holding SE | 3,182 | 132,645 | ||||||
Professional Services — 0.7% | ||||||||
Amadeus Fire AG | 1,218 | 168,577 | ||||||
Bertrandt AG | 1,331 | 62,063 | ||||||
230,640 | ||||||||
Real Estate Management & Development — 14.4% | ||||||||
ADLER Real Estate AG(a)(b) | 10,921 | 135,557 | ||||||
ADO Properties SA(c) | 6,737 | 198,031 | ||||||
Consus Real Estate AG(a) | 11,159 | 84,577 | ||||||
Corestate Capital Holding SA(b) | 4,039 | 178,797 | ||||||
Deutsche EuroShop AG(b) | 11,619 | 282,315 | ||||||
DIC Asset AG | 10,244 | 178,015 | ||||||
Grand City Properties SA | 27,636 | 643,563 | ||||||
LEG Immobilien AG | 16,228 | 1,926,952 | ||||||
PATRIZIA AG | 10,846 | 249,236 | ||||||
TAG Immobilien AG | 31,004 | 747,196 | ||||||
4,624,239 | ||||||||
Road & Rail — 1.0% | ||||||||
Sixt Leasing SE | 2,869 | 59,374 | ||||||
Sixt SE | 3,213 | 278,110 | ||||||
337,484 | ||||||||
Semiconductors & Semiconductor Equipment — 4.6% | ||||||||
Aixtron SE(a) | 26,544 | 266,847 | ||||||
Dialog Semiconductor PLC(a) | 17,961 | 603,913 | ||||||
Elmos Semiconductor AG | 2,342 | 54,924 | ||||||
Siltronic AG | 4,938 | 456,605 | ||||||
SMA Solar Technology AG(a) | 2,474 | 83,266 | ||||||
1,465,555 | ||||||||
Software — 4.7% | ||||||||
Nemetschek SE | 13,580 | 839,824 | ||||||
RIB Software SE(b) | 9,787 | 311,550 | ||||||
Software AG | 11,311 | 366,525 | ||||||
1,517,899 | ||||||||
Specialty Retail — 1.1% | ||||||||
Ceconomy AG(a) | 41,839 | 198,079 | ||||||
Hornbach Baumarkt AG | 1,853 | 34,602 | ||||||
Hornbach Holding AG & Co. KGaA | 2,459 | 137,486 | ||||||
370,167 | ||||||||
Technology Hardware, Storage & Peripherals — 0.7% | ||||||||
S&T AG | 10,870 | 237,012 | ||||||
Textiles, Apparel & Luxury Goods — 2.0% | ||||||||
HUGO BOSS AG | 14,899 | 647,431 |
Security | Shares | Value | ||||||
Thrifts & Mortgage Finance — 2.5% | ||||||||
Aareal Bank AG | 13,215 | $ | 360,868 | |||||
Deutsche Pfandbriefbank AG(c) | 31,622 | 441,831 | ||||||
802,699 | ||||||||
Trading Companies & Distributors — 0.6% | ||||||||
BayWa AG(b) | 3,335 | 88,286 | ||||||
Kloeckner & Co. SE | 17,699 | 96,741 | ||||||
185,027 | ||||||||
Transportation Infrastructure — 0.4% | ||||||||
Hamburger Hafen und Logistik AG | 5,797 | 121,878 | ||||||
Wireless Telecommunication Services — 1.8% | ||||||||
Freenet AG | 30,113 | 585,143 | ||||||
Total Common Stocks — 97.8% | ||||||||
(Cost: $37,896,015) | 31,414,801 | |||||||
Preferred Stocks | ||||||||
Construction Materials — 0.2% | ||||||||
STO SE & Co. KGaA, Preference Shares, NVS | 591 | 60,699 | ||||||
Health Care Equipment & Supplies — 0.4% | ||||||||
Draegerwerk AG & Co. KGaA, Preference Shares, NVS | 1,801 | 115,236 | ||||||
Machinery — 0.7% | ||||||||
Jungheinrich AG, Preference Shares, NVS | 11,268 | 224,401 | ||||||
Road & Rail — 0.7% | ||||||||
Sixt SE, Preference Shares, NVS | 3,894 | 235,683 | ||||||
Total Preferred Stocks — 2.0% | ||||||||
(Cost: $1,072,327) | 636,019 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 9.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 2,973,749 | 2,975,831 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 19,000 | 19,000 | ||||||
2,994,831 | ||||||||
Total Short-Term Investments — 9.3% | ||||||||
(Cost: $2,992,902) | 2,994,831 | |||||||
Total Investments in Securities — 109.1% | ||||||||
(Cost: $41,961,244) | 35,045,651 | |||||||
Other Assets, Less Liabilities — (9.1)% | (2,933,458 | ) | ||||||
Net Assets — 100.0% | $ | 32,112,193 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S c h e d u l e o f I n v e s t m e n t s | 17 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Germany Small-Cap ETF |
February 29, 2020
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 5,172,779 | (2,199,030 | ) | 2,973,749 | $ | 2,975,831 | $ | 79,492 | (b) | $ | 42 | $ | 799 | ||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 20,000 | (1,000 | ) | 19,000 | 19,000 | 121 | — | — | |||||||||||||||||
$ | 2,994,831 | $ | 79,613 | $ | 42 | $ | 799 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 1 | 03/20/20 | $ | 36 | $ | (4,615 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 4,615 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 4,968 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (5,340 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 38,291 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
18 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Germany Small-Cap ETF |
February 29, 2020
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 31,414,801 | $ | — | $ | — | $ | 31,414,801 | ||||||||
Preferred Stocks | 636,019 | — | — | 636,019 | ||||||||||||
Money Market Funds | 2,994,831 | — | — | 2,994,831 | ||||||||||||
$ | 35,045,651 | $ | — | $ | — | $ | 35,045,651 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (4,615 | ) | $ | — | $ | — | $ | (4,615 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 19 |
Schedule of Investments (unaudited) | iShares® MSCI Ireland ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 3.9% | ||||||||
Ryanair Holdings PLC, ADR(a) | 31,814 | $ | 2,280,428 | |||||
Banks — 8.5% | ||||||||
AIB Group PLC | 976,044 | 2,249,340 | ||||||
Bank of Ireland Group PLC | 669,461 | 2,467,899 | ||||||
Permanent TSB Group Holdings PLC(a) | 301,014 | 274,438 | ||||||
4,991,677 | ||||||||
Building Products — 6.6% | ||||||||
Kingspan Group PLC | 61,729 | 3,868,344 | ||||||
Construction Materials — 21.7% | ||||||||
CRH PLC(a) | 380,841 | 12,746,657 | ||||||
Containers & Packaging — 5.8% | ||||||||
Ardagh Group SA | 41,161 | 721,552 | ||||||
Smurfit Kappa Group PLC | 79,875 | 2,651,463 | ||||||
3,373,015 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 5.5% | ||||||||
Hibernia REIT PLC | 1,259,659 | 1,682,545 | ||||||
Irish Residential Properties REIT PLC | 978,044 | 1,514,808 | ||||||
3,197,353 | ||||||||
Food & Staples Retailing — 0.4% | ||||||||
Total Produce PLC | 182,051 | 239,969 | ||||||
Food Products — 23.2% | ||||||||
Glanbia PLC | 233,713 | 2,708,417 | ||||||
Kerry Group PLC, Class A | 79,261 | 10,012,385 | ||||||
Origin Enterprises PLC | 277,153 | 852,428 | ||||||
13,573,230 | ||||||||
Hotels, Restaurants & Leisure — 7.4% | ||||||||
Dalata Hotel Group PLC | 354,938 | 1,621,907 | ||||||
Flutter Entertainment PLC | 25,753 | 2,715,118 | ||||||
4,337,025 | ||||||||
Household Durables — 5.4% | ||||||||
Cairn Homes PLC(a) | 1,345,443 | 1,785,305 | ||||||
Glenveagh Properties PLC(a)(b) | 1,634,359 | 1,351,831 | ||||||
3,137,136 | ||||||||
Insurance — 0.2% | ||||||||
FBD Holdings PLC | 13,460 | 128,631 |
Security | Shares | Value | |||||||
Life Sciences Tools & Services — 4.4% | |||||||||
ICON PLC(a) | 16,678 | $ | 2,602,769 | ||||||
Marine — 0.6% | |||||||||
Irish Continental Group PLC | 88,329 | 376,457 | |||||||
Professional Services — 0.1% | |||||||||
CPL Resources PLC | 8,185 | 72,376 | |||||||
Software — 0.1% | |||||||||
Datalex PLC(a)(c) | 38,823 | 33,263 | |||||||
Specialty Retail — 0.4% | |||||||||
Applegreen PLC | 39,771 | 217,558 | |||||||
Trading Companies & Distributors — 5.7% | |||||||||
Fly Leasing Ltd., ADR(a) | 51,138 | 874,460 | |||||||
Grafton Group PLC | 225,458 | 2,482,367 | |||||||
3,356,827 | |||||||||
Total Common Stocks — 99.9% | |||||||||
(Cost: $59,055,102) | 58,532,715 | ||||||||
Short-Term Investments | |||||||||
Money Market Funds — 0.0% | |||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 1,000 | 1,000 | |||||||
Total Short-Term Investments — 0.0% | |||||||||
(Cost: $1,000) | 1,000 | ||||||||
Total Investments in Securities — 99.9% | |||||||||
(Cost: $59,056,102) | 58,533,715 | ||||||||
Other Assets, Less Liabilities — 0.1% | 61,655 | ||||||||
Net Assets — 100.0% | $ | 58,595,370 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 26,000 | (25,000 | ) | 1,000 | $ | 1,000 | $ | 244 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
20 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Ireland ETF |
February 29, 2020 |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 2 | 03/20/20 | $ | 73 | $ | (256 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 256 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (3 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (256 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 65,087 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 58,499,452 | $ | — | $ | 33,263 | $ | 58,532,715 | ||||||||
Money Market Funds | 1,000 | — | — | 1,000 | ||||||||||||
$ | 58,500,452 | $ | — | $ | 33,263 | $ | 58,533,715 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (256 | ) | $ | — | $ | — | $ | (256 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 21 |
Schedule of Investments (unaudited) | iShares® MSCI New Zealand ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 1.5% | ||||||||
Air New Zealand Ltd. | 1,544,315 | $ | 2,174,345 | |||||
Construction Materials — 4.8% | ||||||||
Fletcher Building Ltd. | 2,071,149 | 6,667,231 | ||||||
Diversified Telecommunication Services — 12.6% | ||||||||
Chorus Ltd. | 1,158,773 | 4,801,110 | ||||||
Spark New Zealand Ltd. | 4,594,507 | 12,923,585 | ||||||
17,724,695 | ||||||||
Electric Utilities — 14.0% | ||||||||
Contact Energy Ltd. | 1,402,587 | 5,828,696 | ||||||
Genesis Energy Ltd. | 1,441,287 | 2,731,043 | ||||||
Infratil Ltd. | 1,731,847 | 5,521,276 | ||||||
Mercury NZ Ltd. | 1,849,222 | 5,488,299 | ||||||
19,569,314 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 9.6% | ||||||||
Argosy Property Ltd. | 2,510,090 | 2,195,206 | ||||||
Goodman Property Trust | 2,864,207 | 4,121,537 | ||||||
Kiwi Property Group Ltd. | 4,074,529 | 3,664,479 | ||||||
Precinct Properties New Zealand Ltd. | 2,982,293 | 3,496,060 | ||||||
13,477,282 | ||||||||
Food Products — 13.8% | ||||||||
a2 Milk Co. Ltd.(a) | 1,817,928 | 18,379,390 | ||||||
Synlait Milk Ltd.(a) | 262,467 | 976,771 | ||||||
19,356,161 | ||||||||
Health Care Equipment & Supplies — 16.3% | ||||||||
Fisher & Paykel Healthcare Corp. Ltd. | 1,425,913 | 22,800,415 | ||||||
Health Care Providers & Services — 7.9% | ||||||||
Metlifecare Ltd. | 526,078 | 2,244,943 | ||||||
Ryman Healthcare Ltd. | 628,095 | 5,941,033 | ||||||
Summerset Group Holdings Ltd. | 606,125 | 2,939,922 | ||||||
11,125,898 | ||||||||
Hotels, Restaurants & Leisure — 3.2% | ||||||||
Restaurant Brands New Zealand Ltd.(a) | 124,133 | 923,922 | ||||||
SKYCITY Entertainment Group Ltd. | 1,789,256 | 3,551,316 | ||||||
4,475,238 |
Security | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers — 3.9% | ||||||||
Meridian Energy Ltd. | 1,893,654 | $ | 5,426,370 | |||||
IT Services — 0.9% | ||||||||
Pushpay Holdings Ltd.(a) | 522,210 | 1,305,320 | ||||||
Media — 0.4% | ||||||||
Sky Network Television Ltd. | 1,767,167 | 591,886 | ||||||
Oil, Gas & Consumable Fuels — 2.1% | ||||||||
New Zealand Refining Co. Ltd. (The) | 736,890 | 557,608 | ||||||
Z Energy Ltd. | 955,624 | 2,406,467 | ||||||
2,964,075 | ||||||||
Road & Rail — 0.5% | ||||||||
Tourism Holdings Ltd. | 459,883 | 710,254 | ||||||
Transportation Infrastructure — 8.4% | ||||||||
Auckland International Airport Ltd. | 2,407,082 | 11,749,853 | ||||||
Total Common Stocks — 99.9% | ||||||||
(Cost: $144,225,227) | 140,118,337 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c) | 69,000 | 69,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $69,000) | 69,000 | |||||||
Total Investments in Securities — 99.9% | ||||||||
(Cost: $144,294,227) | 140,187,337 | |||||||
Other Assets, Less Liabilities — 0.1% | 78,977 | |||||||
Net Assets — 100.0% | $ | 140,266,314 |
(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 affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 2,375,253 | (2,375,253 | ) | — | $ | — | $ | 39,438 | (b) | $ | (10 | ) | $ | (1 | ) | ||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 106,000 | (37,000 | ) | 69,000 | 69,000 | 863 | — | — | |||||||||||||||||
$ | 69,000 | $ | 40,301 | $ | (10 | ) | $ | (1 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
22 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI New Zealand ETF |
February 29, 2020 |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
ASX SPI 200 Index | 1 | 03/19/20 | $ | 103 | $ | (487 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 487 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 13,580 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (487 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 150,182 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 140,118,337 | $ | — | $ | — | $ | 140,118,337 | ||||||||
Money Market Funds | 69,000 | — | — | 69,000 | ||||||||||||
$ | 140,187,337 | $ | — | $ | — | $ | 140,187,337 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (487 | ) | $ | — | $ | — | $ | (487 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 23 |
Schedule of Investments (unaudited) | iShares® MSCI Norway ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.9% | ||||||||
Kongsberg Gruppen ASA | 8,205 | $ | 136,089 | |||||
Airlines — 0.3% | ||||||||
Norwegian Air Shuttle ASA(a) | 23,156 | 46,291 | ||||||
Banks — 17.2% | ||||||||
DNB ASA | 118,911 | 1,957,202 | ||||||
Norwegian Finans Holding ASA(a) | 14,655 | 136,310 | ||||||
Sbanken ASA(b) | 9,712 | 65,623 | ||||||
SpareBank 1 Nord Norge | 15,481 | 118,987 | ||||||
Sparebank 1 Oestlandet | 4,216 | 41,929 | ||||||
SpareBank 1 SMN | 17,993 | 179,516 | ||||||
SpareBank 1 SR-Bank ASA | 19,201 | 181,432 | ||||||
2,680,999 | ||||||||
Chemicals — 5.8% | ||||||||
Borregaard ASA | 15,346 | 161,451 | ||||||
Elkem ASA(b) | 17,319 | 32,913 | ||||||
Yara International ASA | 19,624 | 706,495 | ||||||
900,859 | ||||||||
Commercial Services & Supplies — 2.6% | ||||||||
Tomra Systems ASA | 12,751 | 399,016 | ||||||
Construction & Engineering — 0.7% | ||||||||
Veidekke ASA | 9,544 | 115,272 | ||||||
Consumer Finance — 0.3% | ||||||||
Axactor SE(a) | 17,436 | 23,931 | ||||||
B2Holding ASA | 24,544 | 16,014 | ||||||
39,945 | ||||||||
Diversified Financial Services — 0.9% | ||||||||
Aker ASA, Class A | 3,247 | 144,870 | ||||||
Diversified Telecommunication Services — 9.3% | ||||||||
Telenor ASA | 90,824 | 1,441,689 | ||||||
Electric Utilities — 0.2% | ||||||||
Fjordkraft Holding ASA(b) | 3,904 | 30,089 | ||||||
Electrical Equipment — 0.6% | ||||||||
NEL ASA(a)(c) | 99,026 | 100,889 | ||||||
Energy Equipment & Services — 5.6% | ||||||||
Aker Solutions ASA(a) | 23,806 | 32,686 | ||||||
Borr Drilling Ltd.(a)(c) | 10,512 | 21,397 | ||||||
BW Offshore Ltd.(a) | 12,130 | 45,950 | ||||||
Kvaerner ASA | 14,972 | 13,412 | ||||||
Ocean Yield ASA(c) | 10,346 | 41,890 | ||||||
Odfjell Drilling Ltd.(a)(c) | 12,391 | 31,344 | ||||||
PGS ASA(a) | 46,226 | 63,884 | ||||||
Subsea 7 SA | 31,922 | 278,178 | ||||||
TGS NOPEC Geophysical Co. ASA | 14,954 | 337,230 | ||||||
865,971 | ||||||||
Food Products — 19.5% | ||||||||
Austevoll Seafood ASA | 13,291 | 116,187 | ||||||
Bakkafrost P/F | 6,727 | 420,091 | ||||||
Grieg Seafood ASA | 6,537 | 82,611 | ||||||
Leroy Seafood Group ASA | 40,269 | 244,119 | ||||||
Mowi ASA | 53,776 | 1,123,858 | ||||||
Norway Royal Salmon ASA | 1,731 | 39,219 | ||||||
Orkla ASA | 84,078 | 703,210 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Salmar ASA | 6,817 | $ | 302,712 | |||||
3,032,007 | ||||||||
Independent Power and Renewable Electricity Producers — 1.3% | ||||||||
Scatec Solar ASA(b) | 11,465 | 195,122 | ||||||
Insurance — 6.1% | ||||||||
Gjensidige Forsikring ASA. | 26,552 | 529,818 | ||||||
Protector Forsikring ASA(a)(c) | 10,775 | 39,224 | ||||||
Storebrand ASA | 61,521 | 385,813 | ||||||
954,855 | ||||||||
Interactive Media & Services — 1.6% | ||||||||
Adevinta ASA(a) | 23,424 | 243,840 | ||||||
IT Services — 0.9% | ||||||||
Atea ASA | 12,093 | 134,568 | ||||||
Marine — 0.8% | ||||||||
Golden Ocean Group Ltd. | 14,448 | 56,011 | ||||||
Stolt-Nielsen Ltd. | 4,578 | 49,880 | ||||||
Wallenius Wilhelmsen ASA | 13,899 | 25,225 | ||||||
131,116 | ||||||||
Media — 2.0% | ||||||||
Schibsted ASA, Class B | 13,006 | 310,052 | ||||||
Metals & Mining — 2.9% | ||||||||
Norsk Hydro ASA | 160,915 | 452,923 | ||||||
Multiline Retail — 0.4% | ||||||||
Europris ASA(b) | 20,602 | 67,950 | ||||||
Oil, Gas & Consumable Fuels — 16.4% | ||||||||
Aker BP ASA | 14,415 | 337,402 | ||||||
BW Energy Ltd.(a) | 4,930 | 8,863 | ||||||
BW LPG Ltd.(b) | 13,893 | 83,826 | ||||||
DNO ASA | 98,101 | 66,887 | ||||||
Equinor ASA | 127,593 | 1,902,755 | ||||||
Flex LNG Ltd.(c) | 3,102 | 20,141 | ||||||
Frontline Ltd./Bermuda | 13,591 | 103,599 | ||||||
Hoegh LNG Holdings Ltd. | 8,418 | 18,575 | ||||||
2,542,048 | ||||||||
Real Estate Management & Development — 2.5% | ||||||||
Entra ASA(b) | 20,378 | 316,261 | ||||||
Selvaag Bolig ASA | 11,035 | 69,087 | ||||||
385,348 | ||||||||
Semiconductors & Semiconductor Equipment — 0.7% | ||||||||
Nordic Semiconductor ASA(a) | 20,428 | 106,412 | ||||||
Specialty Retail — 0.1% | ||||||||
XXL ASA(a)(b)(c) | 15,300 | 17,413 | ||||||
Total Common Stocks — 99.6% | ||||||||
(Cost: $21,847,297) | 15,475,633 | |||||||
Rights | ||||||||
Specialty Retail — 0.0% | ||||||||
XXL ASA, (Expires 03/11/20)(a)(c) | 1,795 | 0 | (d) | |||||
Total Rights — 0.0% | ||||||||
(Cost: $0) | 0 | (d) |
24 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Norway ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g) | 346,696 | $ | 346,938 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f) | 5,000 | 5,000 | ||||||
351,938 | ||||||||
Total Short-Term Investments — 2.3% | ||||||||
(Cost: $351,800) | 351,938 | |||||||
Total Investments in Securities — 101.9% | ||||||||
(Cost: $22,199,097) | 15,827,571 | |||||||
Other Assets, Less Liabilities — (1.9)% | (288,888 | ) | ||||||
Net Assets — 100.0% | $ | 15,538,683 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | All or a portion of this security is on loan. |
(d) | Rounds to less than $1. |
(e) | Affiliate of the Fund. |
(f) | Annualized 7-day yield as of period-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 337,669 | 9,027 | 346,696 | $ | 346,938 | $ | 5,391 | (b) | $ | (6 | ) | $ | 72 | ||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 10,000 | (5,000 | ) | 5,000 | 5,000 | 94 | — | — | |||||||||||||||||
$ | 351,938 | $ | 5,485 | $ | (6 | ) | $ | 72 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 1 | 03/20/20 | $ | 36 | $ | (5,703 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 5,703 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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). |
S c h e d u l e o f I n v e s t m e n t s | 25 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Norway ETF |
February 29, 2020 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 455 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (5,703 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 12,134 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 15,475,633 | $ | — | $ | — | $ | 15,475,633 | ||||||||
Rights | — | 0 | (a) | — | 0 | (a) | ||||||||||
Money Market Funds | 351,938 | — | — | 351,938 | ||||||||||||
$ | 15,827,571 | $ | 0 | (a) | $ | — | $ | 15,827,571 | ||||||||
Derivative financial instruments(b) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (5,703 | ) | $ | — | $ | — | $ | (5,703 | ) |
(a) | Rounds to less than $1. |
(b) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
26 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares | ||||||||||||||||
iShares | MSCI | |||||||||||||||
MSCI | iShares | Germany | iShares | |||||||||||||
Denmark | MSCI Finland | Small-Cap | MSCI Ireland | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan) (a): | ||||||||||||||||
Unaffiliated (b) | $ | 48,155,960 | $ | 24,391,111 | $ | 32,050,820 | $ | 58,532,715 | ||||||||
Affiliated (c) | 367,452 | 471,923 | 2,994,831 | 1,000 | ||||||||||||
Cash | 185 | 763 | 973 | 711 | ||||||||||||
Foreign currency, at value(d) | 31,283 | 22,081 | 29,548 | 1,654 | ||||||||||||
Foreign currency collateral pledged: | ||||||||||||||||
Futures contracts(e) | 60,119 | 8,787 | 3,295 | 5,492 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 257,879 | 344,818 | 148,007 | 2,135,448 | ||||||||||||
Securities lending income — Affiliated | 325 | 264 | 8,849 | — | ||||||||||||
Dividends | 21,486 | 95,545 | 9,321 | 22,386 | ||||||||||||
Tax reclaims | 630,720 | — | 27,346 | 16,948 | ||||||||||||
Foreign withholding tax claims | — | 2,007 | — | — | ||||||||||||
Total assets | 49,525,409 | 25,337,299 | 35,272,990 | 60,716,354 | ||||||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 348,512 | 305,816 | 2,973,130 | — | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 240,298 | 331,998 | 169,462 | 2,095,232 | ||||||||||||
Variation margin on futures contracts | 36,738 | 4,736 | 1,591 | 258 | ||||||||||||
Capital shares redeemed | — | 6,711 | — | — | ||||||||||||
Investment advisory fees | 19,592 | 12,309 | 16,614 | 25,494 | ||||||||||||
Professional fees | — | 53,379 | — | — | ||||||||||||
IRS compliance fee for foreign withholding tax claims | — | 99,047 | — | — | ||||||||||||
Total liabilities | 645,140 | 813,996 | 3,160,797 | 2,120,984 | ||||||||||||
NET ASSETS | $ | 48,880,269 | $ | 24,523,303 | $ | 32,112,193 | $ | 58,595,370 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 56,651,474 | $ | 30,649,900 | $ | 41,597,301 | $ | 69,652,099 | ||||||||
Accumulated loss | (7,771,205 | ) | (6,126,597 | ) | (9,485,108 | ) | (11,056,729 | ) | ||||||||
NET ASSETS | $ | 48,880,269 | $ | 24,523,303 | $ | 32,112,193 | $ | 58,595,370 | ||||||||
Shares outstanding | 750,000 | 700,000 | 600,000 | 1,450,000 | ||||||||||||
Net asset value | $ | 65.17 | $ | 35.03 | $ | 53.52 | $ | 40.41 | ||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value | None | None | None | None | ||||||||||||
(a) Securities loaned, at value | $ | 341,895 | $ | 285,388 | $ | 2,751,347 | $ | — | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 52,363,887 | $ | 29,537,993 | $ | 38,968,342 | $ | 59,055,102 | ||||||||
(c) Investments, at cost — Affiliated | $ | 367,439 | $ | 471,838 | $ | 2,992,902 | $ | 1,000 | ||||||||
(d) Foreign currency, at cost | $ | 30,497 | $ | 21,947 | $ | 29,125 | $ | 1,719 | ||||||||
(e) Foreign currency collateral pledged, at cost | $ | 60,763 | $ | 8,733 | $ | 3,300 | $ | 5,492 |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 27 |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares | iShares | |||||||
MSCI New | MSCI | |||||||
Zealand ETF | Norway ETF | |||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan) (a) | ||||||||
Unaffiliated (b) | $ | 140,118,337 | $ | 15,475,633 | ||||
Affiliated (c) | 69,000 | 351,938 | ||||||
Cash. | 990 | 813 | ||||||
Foreign currency, at value(d) | 21,346 | 27,663 | ||||||
Foreign currency collateral pledged: | ||||||||
Futures contracts(e) | — | 3,295 | ||||||
Receivables: | ||||||||
Investments sold | 1,326,734 | 106,145 | ||||||
Securities lending income — Affiliated | 1,172 | 543 | ||||||
Dividends | 144,189 | 17,044 | ||||||
Tax reclaims | — | 4,380 | ||||||
Total assets | 141,681,768 | 15,987,454 | ||||||
LIABILITIES | ||||||||
Collateral on securities loaned, at value | — | 346,438 | ||||||
Payables: | ||||||||
Investments purchased | 1,342,627 | 92,322 | ||||||
Variation margin on futures contracts | 489 | 1 ,605 | ||||||
Capital shares redeemed | 6,539 | — | ||||||
Investment advisory fees | 65,799 | 8,406 | ||||||
Total liabilities | 1,415,454 | 448,771 | ||||||
NET ASSETS | $ | 140,266,314 | $ | 15,538,683 | ||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 149,736,727 | $ | 29,427,324 | ||||
Accumulated loss | (9,470,413 | ) | (13,888,641 | ) | ||||
NET ASSETS | $ | 140,266,314 | $ | 15,538,683 | ||||
Shares outstanding | 2,650,000 | 750,000 | ||||||
Net asset value | $ | 52.93 | $ | 20.72 | ||||
Shares authorized | Unlimited | Unlimited | ||||||
Par value | None | None | ||||||
(a) Securities loaned, at value | $ | — | $ | 254,874 | ||||
(b) Investments, at cost — Unaffiliated | $ | 144,225,227 | $ | 21,847,297 | ||||
(c) Investments, at cost — Affiliated | $ | 69,000 | $ | 351,800 | ||||
(d) Foreign currency, at cost | $ | 22,177 | $ | 27,827 | ||||
(e) Foreign currency collateral pledged, at cost | $ | — | $ | 3,247 |
See notes to financial statements.
28 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | ||||||||||||||||
iShares | iShares | MSCI | ||||||||||||||
MSCI | MSCI | Germany | iShares | |||||||||||||
Denmark | Finland | Small-Cap | MSCI Ireland | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 86,671 | $ | 185,481 | $ | 50,229 | $ | 368,303 | ||||||||
Dividends — Affiliated | 156 | 1,452 | 121 | 244 | ||||||||||||
Securities lending income — Affiliated — net | 6,458 | 1,823 | 79,492 | — | ||||||||||||
Foreign taxes withheld | (13,904 | ) | — | (4,199 | ) | (7,676 | ) | |||||||||
Total investment income | 79,381 | 188,756 | 125,643 | 360,871 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 98,881 | 75,587 | 108,350 | 157,103 | ||||||||||||
Total expenses | 98,881 | 75,587 | 108,350 | 157,103 | ||||||||||||
Net investment income (loss) | (19,500 | ) | 113,169 | 17,293 | 203,768 | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (344,249 | ) | (669,551 | ) | (490,332 | ) | (1,560,113 | ) | ||||||||
Investments — Affiliated | 118 | 17 | 42 | — | ||||||||||||
In-kind redemptions — Unaffiliated | 283,618 | 902,792 | 725,813 | 591,900 | ||||||||||||
Futures contracts | 129,611 | 1,775 | 4,968 | (3 | ) | |||||||||||
Foreign currency transactions | (2,471 | ) | (2,342 | ) | 580 | (29 | ) | |||||||||
Net realized gain (loss) | 66,627 | 232,691 | 241,071 | (968,245 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 1,184,102 | 48,919 | 503,396 | 2,645,923 | ||||||||||||
Investments — Affiliated | (78 | ) | 25 | 799 | — | |||||||||||
Futures contracts | (74,815 | ) | (10,748 | ) | (5,340 | ) | (256 | ) | ||||||||
Foreign currency translations | (2,771 | ) | 1,370 | 400 | 611 | |||||||||||
Net change in unrealized appreciation (depreciation) | 1,106,438 | 39,566 | 499,255 | 2,646,278 | ||||||||||||
Net realized and unrealized gain | 1,173,065 | 272,257 | 740,326 | 1,678,033 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,153,565 | $ | 385,426 | $ | 757,619 | $ | 1,881,801 |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 29 |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares | iShares | |||||||
MSCI New | MSCI | |||||||
Zealand ETF | Norway ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Unaffiliated | $ | 2,555,377 | $ | 267,533 | ||||
Dividends — Affiliated | 863 | 94 | ||||||
Securities lending income — Affiliated — net | 39,438 | 5,391 | ||||||
Foreign taxes withheld | (354,396 | ) | (60,416 | ) | ||||
Total investment income | 2,241,282 | 212,602 | ||||||
EXPENSES | ||||||||
Investment advisory fees | 431,632 | 57,962 | ||||||
Total expenses | 431,632 | 57,962 | ||||||
Net investment income | 1 ,809,650 | 154,640 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated | (2,291,198 | ) | (326,980 | ) | ||||
Investments — Affiliated | (10 | ) | (6 | ) | ||||
In-kind redemptions — Unaffiliated | 10,022,975 | (550,213 | ) | |||||
Futures contracts | 1 3,580 | 455 | ||||||
Foreign currency transactions | 24,808 | (1,025 | ) | |||||
Net realized gain (loss) | 7,770,155 | (877,769 | ) | |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated | 507,301 | (424,712 | ) | |||||
Investments — Affiliated | (1 | ) | 72 | |||||
Futures contracts | (487 | ) | (5,703 | ) | ||||
Foreign currency translations | 110 | (400 | ) | |||||
Net change in unrealized appreciation (depreciation) | 506,923 | (430,743 | ) | |||||
Net realized and unrealized gain (loss) | 8,277,078 | (1,308,512 | ) | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 10,086,728 | $ | (1,153,872 | ) |
See notes to financial statements.
30 | 2 0 2 0 i S h a r e s S e m i - A n 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 | iShares | |||||||||||||||
MSCI Denmark ETF | MSCI Finland ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | (19,500 | ) | $ | 702,511 | $ | 113,169 | $ | 1,056,398 | |||||||
Net realized gain | 66,627 | 2,115,673 | 232,691 | 977,877 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 1,106,438 | (3,999,890 | ) | 39,566 | (6,684,554 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 1,153,565 | (1,181,706 | ) | 385,426 | (4,650,279 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (57,188 | ) | (1,080,111 | ) | (525,739 | ) | (992,178 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 14,239,465 | (4,842,621 | ) | (2,061,177 | ) | (7,367,604 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 15,335,842 | (7,104,438 | ) | (2,201,490 | ) | (13,010,061 | ) | |||||||||
Beginning of period | 33,544,427 | 40,648,865 | 26,724,793 | 39,734,854 | ||||||||||||
End of period | $ | 48,880,269 | $ | 33,544,427 | $ | 24,523,303 | $ | 26,724,793 |
(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 | 31 |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI Germany Small-Cap ETF | MSCI Ireland ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 17,293 | $ | 836,562 | $ | 203,768 | $ | 878,700 | ||||||||
Net realized gain (loss) | 241,071 | (2,038,640 | ) | (968,245 | ) | (1,689,517 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 499,255 | (7,368,968 | ) | 2,646,278 | (8,459,204 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 757,619 | (8,571,046 | ) | 1,881,801 | (9,270,021 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | — | (1,248,559 | ) | (618,009 | ) | (950,188 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (5,572,624 | ) | (13,513,268 | ) | 2,180,350 | (4,009,826 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (4,815,005 | ) | (23,332,873 | ) | 3,444,142 | (14,230,035 | ) | |||||||||
Beginning of period | 36,927,198 | 60,260,071 | 55,151,228 | 69,381,263 | ||||||||||||
End of period | $ | 32,112,193 | $ | 36,927,198 | $ | 58,595,370 | $ | 55,151,228 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
32 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI New Zealand ETF | MSCI Norway ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 1,809,650 | $ | 5,098,449 | $ | 154,640 | $ | 840,033 | ||||||||
Net realized gain (loss) | 7,770,155 | 12,827,583 | (877,769 | ) | (1,257,878 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 506,923 | (6,501,438 | ) | (430,743 | ) | (6,115,925 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 10,086,728 | 11,424,594 | (1,153,872 | ) | (6,533,770 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (3,767,136 | ) | (5,013,803 | ) | (125,510 | ) | (992,402 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (31,804,286 | ) | 16,934,564 | (5,814,418 | ) | (275,330 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (25,484,694 | ) | 23,345,355 | (7,093,800 | ) | (7,801,502 | ) | |||||||||
Beginning of period | 165,751,008 | 142,405,653 | 22,632,483 | 30,433,985 | ||||||||||||
End of period | $ | 140,266,314 | $ | 165,751,008 | $ | 15,538,683 | $ | 22,632,483 |
(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 | 33 |
(For a share outstanding throughout each period)
iShares MSCI Denmark ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 60.99 | $ | 67.75 | $ | 67.57 | $ | 56.39 | $ | 53.99 | $ | 50.53 | ||||||||||||
Net investment income (loss)(a) | (0.03 | ) | 0.97 | 0.90 | 0.94 | 0.76 | 0.84 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | 4.31 | (5.99 | ) | 0.77 | 11.07 | 2.27 | 3.43 | |||||||||||||||||
Net increase (decrease) from investment operations | 4.28 | (5.02 | ) | 1.67 | 12.01 | 3.03 | 4.27 | |||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.10 | ) | (1.74 | ) | (1.49 | ) | (0.83 | ) | (0.63 | ) | (0.81 | ) | ||||||||||||
Total distributions | (0.10 | ) | (1.74 | ) | (1.49 | ) | (0.83 | ) | (0.63 | ) | (0.81 | ) | ||||||||||||
Net asset value, end of period | $ | 65.17 | $ | 60.99 | $ | 67.75 | $ | 67.57 | $ | 56.39 | $ | 53.99 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 7.02 | %(d) | (7.41 | )% | 2.58 | % | 21.43 | % | 5.63 | % | 8.43 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.53 | %(e) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
Net investment income (loss) | (0.10 | )%(e) | 1.59 | % | 1.34 | % | 1.66 | % | 1.38 | % | 1.62 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 48,880 | $ | 33,544 | $ | 40,649 | $ | 67,567 | $ | 47,928 | $ | 48,594 | ||||||||||||
Portfolio turnover rate(f) | 4 | %(d) | 14 | % | 13 | % | 14 | % | 40 | % | 9 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
34 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Finland ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 35.63 | $ | 41.83 | $ | 39.79 | $ | 33.19 | $ | 31.32 | $ | 34.52 | ||||||||||||
Net investment income(a) | 0.15 | 1.30 | 1.39 | 1.02 | 1.51 | (b) | 0.56 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (0.09 | ) | (5.98 | ) | 2.16 | 6.74 | 1.13 | (3.25 | ) | |||||||||||||||
Net increase (decrease) from investment operations | 0.06 | (4.68 | ) | 3.55 | 7.76 | 2.64 | (2.69 | ) | ||||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.66 | ) | (1.52 | ) | (1.51 | ) | (1.16 | ) | (0.77 | ) | (0.51 | ) | ||||||||||||
Total distributions | (0.66 | ) | (1.52 | ) | (1.51 | ) | (1.16 | ) | (0.77 | ) | (0.51 | ) | ||||||||||||
Net asset value, end of period | $ | 35.03 | $ | 35.63 | $ | 41.83 | $ | 39.79 | $ | 33.19 | $ | 31.32 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.06 | %(e) | (11.24 | )% | 9.08 | % | 23.32 | % | 8.60 | %(b) | (7.90 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.53 | %(f) | 0.53 | % | 0.53 | % | 0.55 | % | 0.72 | % | 0.53 | % | ||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims | N/A | 0.53 | % | N/A | 0.53 | % | 0.53 | % | N/A | |||||||||||||||
Net investment income | 0.79 | %(f) | 3.40 | % | 3.38 | % | 2.84 | % | 4.72 | %(b) | 1.68 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 24,523 | $ | 26,725 | $ | 39,735 | $ | 45,753 | $ | 38,168 | $ | 23,488 | ||||||||||||
Portfolio turnover rate(g) | 8 | %(e) | 16 | % | 11 | % | 12 | % | 21 | % | 12 | % |
(a) | Based on average shares outstanding |
(b) | Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2016: |
• | Net investment income per share by $0.42. |
• | Total return by 1.05%. |
• | Ratio of net investment income to average net assets by 1.32%. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 35 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Germany Small-Cap ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 52.75 | $ | 63.43 | $ | 57.18 | $ | 43.23 | $ | 40.03 | $ | 38.93 | ||||||||||||
Net investment income(a) | 0.03 | 1.07 | 1.33 | 0.78 | 0.71 | 0.53 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.74 | (10.06 | ) | 6.19 | 13.87 | 3.16 | 1.26 | |||||||||||||||||
Net increase (decrease) from investment operations | 0.77 | (8.99 | ) | 7.52 | 14.65 | 3.87 | 1.79 | |||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | — | (1.69 | ) | (1.27 | ) | (0.70 | ) | (0.67 | ) | (0.69 | ) | |||||||||||||
Total distributions | — | (1.69 | ) | (1.27 | ) | (0.70 | ) | (0.67 | ) | (0.69 | ) | |||||||||||||
Net asset value, end of period | $ | 53.52 | $ | 52.75 | $ | 63.43 | $ | 57.18 | $ | 43.23 | $ | 40.03 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 1.46 | %(d) | (14.08 | )% | 13.22 | % | 34.12 | % | 9.72 | % | 4.61 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(e) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Net investment income | 0.09 | %(e) | 1.95 | % | 2.09 | % | 1.65 | % | 1.73 | % | 1.36 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 32,112 | $ | 36,927 | $ | 60,260 | $ | 40,025 | $ | 23,779 | $ | 26,023 | ||||||||||||
Portfolio turnover rate(f) | 6 | %(d) | 13 | % | 14 | % | 14 | % | 12 | % | 18 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
36 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Ireland ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 39.39 | $ | 46.25 | $ | 43.80 | $ | 38.94 | $ | 40.34 | $ | 35.27 | ||||||||||||
Net investment income(a) | 0.14 | 0.61 | 0.61 | 0.47 | 0.49 | 0.52 | (b) | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | 1.31 | (6.80 | ) | 2.62 | 4.94 | (1.33 | ) | 5.43 | ||||||||||||||||
Net increase (decrease) from investment operations | 1.45 | (6.19 | ) | 3.23 | 5.41 | (0.84 | ) | 5.95 | ||||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.43 | ) | (0.67 | ) | (0.78 | ) | (0.55 | ) | (0.56 | ) | (0.62 | ) | ||||||||||||
From net realized gain | — | — | — | — | — | (0.26 | ) | |||||||||||||||||
Total distributions | (0.43 | ) | (0.67 | ) | (0.78 | ) | (0.55 | ) | (0.56 | ) | (0.88 | ) | ||||||||||||
Net asset value, end of period | $ | 40.41 | $ | 39.39 | $ | 46.25 | $ | 43.80 | $ | 38.94 | $ | 40.34 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 3.59 | %(e) | (13.44 | )% | 7.38 | % | 13.99 | % | (2.12 | )% | 17.10 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(f) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 0.65 | %(f) | 1.49 | % | 1.31 | % | 1.19 | % | 1.27 | % | 1.41 | %(b) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 58,595 | $ | 55,151 | $ | 69,381 | $ | 67,883 | $ | 124,596 | $ | 177,496 | ||||||||||||
Portfolio turnover rate(g) | 18 | %(e) | 24 | % | 20 | % | 14 | % | 31 | % | 26 | % |
(a) | Based on average shares outstanding. |
(b) | Includes a one-time special distribution from Paddy Power PLC. Excluding such special distribution, the net investment income would have been $0.34 per share and 0.94% of average net assets. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 37 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI New Zealand ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 51.80 | $ | 49.11 | $ | 46.26 | $ | 46.90 | $ | 32.17 | $ | 40.88 | ||||||||||||
Net investment income(a) | 0.57 | 1.58 | 1.71 | 1.96 | 1.21 | 1.87 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 1.74 | 2.70 | 2.86 | (0.39 | ) | 14.76 | (8.57 | ) | ||||||||||||||||
Net increase (decrease) from investment operations | 2.31 | 4.28 | 4.57 | 1.57 | 15.97 | (6.70 | ) | |||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (1.18 | ) | (1.59 | ) | (1.72 | ) | (2.21 | ) | (1.24 | ) | (2.01 | ) | ||||||||||||
Total distributions | (1.18 | ) | (1.59 | ) | (1.72 | ) | (2.21 | ) | (1.24 | ) | (2.01 | ) | ||||||||||||
Net asset value, end of period | $ | 52.93 | $ | 51.80 | $ | 49.11 | $ | 46.26 | $ | 46.90 | $ | 32.17 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 4.35 | %(d) | 9.00 | % | 10.02 | % | 3.95 | % | 50.49 | % | (17.01 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.50 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 2.09 | %(e) | 3.16 | % | 3.58 | % | 4.45 | % | 3.05 | % | 4.83 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 140,266 | $ | 165,751 | $ | 142,406 | $ | 175,790 | $ | 171,183 | $ | 64,344 | ||||||||||||
Portfolio turnover rate(f) | 4 | %(d) | 15 | % | 14 | % | 9 | % | 11 | % | 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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
38 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Norway ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | �� | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.63 | $ | 27.67 | $ | 25.07 | $ | 20.36 | $ | 20.40 | $ | 31.83 | ||||||||||||
Net investment income(a) | 0.17 | 0.67 | 0.72 | 0.69 | 0.64 | 0.64 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.95 | ) | (4.91 | ) | 2.56 | 4.70 | (0.06 | ) | (11.49 | ) | ||||||||||||||
Net increase (decrease) from investment operations | (1.78 | ) | (4.24 | ) | 3.28 | 5.39 | 0.58 | (10.85 | ) | |||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.80 | ) | (0.68 | ) | (0.68 | ) | (0.62 | ) | (0.58 | ) | ||||||||||||
Total distributions | (0.13 | ) | (0.80 | ) | (0.68 | ) | (0.68 | ) | (0.62 | ) | (0.58 | ) | ||||||||||||
Net asset value, end of period | $ | 20.72 | $ | 22.63 | $ | 27.67 | $ | 25.07 | $ | 20.36 | $ | 20.40 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (7.94 | )%(d) | (15.42 | )% | 13.21 | % | 27.10 | % | 2.89 | % | (34.32 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.53 | %(e) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
Net investment income | 1.41 | %(e) | 2.66 | % | 2.67 | % | 3.11 | % | 3.23 | % | 2.60 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 15,539 | $ | 22,632 | $ | 30,434 | $ | 32,589 | $ | 26,462 | $ | 30,595 | ||||||||||||
Portfolio turnover rate(f) | 4 | %(d) | 13 | % | 13 | % | 10 | % | 19 | % | 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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 39 |
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”):
Diversification | |
iShares ETF | Classification |
MSCI Denmark | Non-diversified |
MSCI Finland | Non-diversified |
MSCI Germany Small-Cap | Diversified |
MSCI Ireland | Non-diversified |
MSCI New Zealand | Non-diversified |
MSCI Norway | Non-diversified |
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
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.
40 | 2 0 2 0 i S h a r e s S e m i - A n 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)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
● | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
● | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
● | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
● | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
● | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral
N o t e s t o F i n a n c i a l S t a t e m e n t s | 41 |
Notes to Financial Statements (unaudited) (continued)
received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
Market Value of | Cash Collateral | Non-Cash Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received(a) | Received | Net Amount | ||||||||||||
MSCI Denmark | ||||||||||||||||
Goldman Sachs & Co. | $ | 2,701 | $ | 2,701 | $ | — | $ | — | ||||||||
Morgan Stanley & Co. LLC | 339,194 | 339,194 | — | — | ||||||||||||
$ | 341,895 | $ | 341,895 | $ | — | $ | — | |||||||||
MSCI Finland | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 192,647 | $ | 192,647 | $ | — | $ | — | ||||||||
JPMorgan Securities LLC | 92,741 | 92,741 | — | — | ||||||||||||
$ | 285,388 | $ | 285,388 | $ | — | $ | — | |||||||||
MSCI Germany Small-Cap | ||||||||||||||||
Barclays Capital Inc. | $ | 301,056 | $ | 301,056 | $ | — | $ | — | ||||||||
BofA Securities, Inc. | 38,809 | 38,809 | — | — | ||||||||||||
Credit Suisse AG Dublin Branch | 145,675 | 145,675 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 230,547 | 230,547 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 220,995 | 220,995 | — | — | ||||||||||||
Goldman Sachs & Co. | 783,491 | 783,491 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 991,584 | 991,584 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 10,389 | 10,389 | — | — | ||||||||||||
UBSAG | 28,801 | 28,801 | — | — | ||||||||||||
$ | 2,751,347 | $ | 2,751,347 | $ | — | $ | — | |||||||||
MSCI Norway | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 40,594 | $ | 40,594 | $ | — | $ | — | ||||||||
Credit Suisse AG Dublin Branch | 35,357 | 35,357 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 60,621 | 60,621 | — | — | ||||||||||||
HSBC Bank PLC | 17,413 | 17,413 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 100,889 | 100,889 | — | — | ||||||||||||
$ | 254,874 | $ | 254,874 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
42 | 2 0 2 0 i S h a r e s S e m i - A n 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)
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
MSCI Denmark | 0.53 | % | ||
MSCI Finland | 0.53 | |||
MSCI Germany Small-Cap | 0.59 | |||
MSCI Norway | 0.53 |
For its investment advisory services to each of the iShares MSCI Ireland and iShares MSCI New Zealand ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $7 billion | 0.59 | % | ||
Over $7 billion, up to and including $11 billion | 0.54 | |||
Over $11 billion, up to and including $24 billion | 0.49 | |||
Over $24 billion, up to and including $48 billion | 0.44 | |||
Over $48 billion, up to and including $72 billion | 0.40 | |||
Over $72 billion, up to and including $96 billion | 0.36 | |||
Over $96 billion | 0.32 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% 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.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 43 |
Notes to Financial Statements (unaudited) (continued)
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
Fees Paid | ||||
iShares ETF | to BTC | |||
MSCI Denmark | $ | 1,528 | ||
MSCI Finland | 488 | |||
MSCI Germany Small-Cap | 18,370 | |||
MSCI New Zealand | 11,497 | |||
MSCI Norway | 1,250 |
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 February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
Net Realized | ||||||||||||
iShares ETF | Purchases | Sales | Gain (Loss) | |||||||||
MSCI Denmark | $ | 48,368 | $ | 257,879 | $ | (19,270 | ) | |||||
MSCI Finland | 212,241 | 81,439 | (4,924 | ) | ||||||||
MSCI Germany Small-Cap | 722,435 | — | — | |||||||||
MSCI Ireland | — | 1,587,868 | (230,772 | ) | ||||||||
MSCI Norway | 3,998 | 23,099 | (23,808 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Denmark | $ | 1,603,762 | $ | 1,417,128 | ||||
MSCI Finland | 2,1 22,451 | 2,634,743 | ||||||
MSCI Germany Small-Cap | 2,1 15,574 | 2,192,201 | ||||||
MSCI Ireland | 11,385,067 | 11,768,814 | ||||||
MSCI New Zealand | 5,974,453 | 7,613,248 | ||||||
MSCI Norway | 756,352 | 1,151,949 |
For the six months ended February 29, 2020, in-kind transactions were as follows:
In-kind | In-kind | |||||||
iShares ETF | Purchases | Sales | ||||||
MSCI Denmark | $ | 17,066,909 | $ | 3,102,656 | ||||
MSCI Finland | 3,666,259 | 5,736,173 | ||||||
MSCI Germany Small-Cap | 5,928,932 | 11,416,810 | ||||||
MSCI Ireland | 4,408,922 | 2,236,368 | ||||||
MSCI New Zealand | 20,492,976 | 52,024,159 | ||||||
MSCI Norway | 4,542,120 | 9,960,012 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
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Notes to Financial Statements (unaudited) (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds' financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
MSCI Denmark | $ | 2,798,513 | ||
MSCI Finland | 324,503 | |||
MSCI Germany Small-Cap | 2,208,141 | |||
MSCI Ireland | 8,187,703 | |||
MSCI New Zealand | 9,392,840 | |||
MSCI Norway | 6,161,185 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, 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:
Net Unrealized | ||||||||||||||||
Gross Unrealized | Gross Unrealized | Appreciation | ||||||||||||||
iShares ETF | Tax Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
MSCI Denmark | $ | 53,407,491 | $ | 3,150,495 | $ | (8,109,389 | ) | $ | (4,958,894 | ) | ||||||
MSCI Finland | 30,809,827 | 884,924 | (6,842,465 | ) | (5,957,541 | ) | ||||||||||
MSCI Germany Small-Cap | 42,575,792 | 2,724,915 | (10,259,671 | ) | (7,534,756 | ) | ||||||||||
MSCI Ireland | 60,423,213 | 7,917,372 | (9,807,126 | ) | (1,889,754 | ) | ||||||||||
MSCI New Zealand | 148,539,162 | 14,834,433 | (23,186,745 | ) | (8,352,312 | ) | ||||||||||
MSCI Norway | 22,699,094 | 402,725 | (7,279,951 | ) | (6,877,226 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 45 |
Notes to Financial Statements (unaudited) (continued)
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended | Year Ended | |||||||||||||||
02/29/20 | 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Denmark | ||||||||||||||||
Shares sold | 250,000 | $ | 17,415,148 | 550,000 | $ | 32,488,084 | ||||||||||
Shares redeemed | (50,000 | ) | (3,175,683 | ) | (600,000 | ) | (37,330,705 | ) | ||||||||
Net increase(decrease) | 200,000 | $ | 14,239,465 | (50,000 | ) | $ | (4,842,621 | ) | ||||||||
MSCI Finland | ||||||||||||||||
Shares sold | 100,000 | $ | 3,686,925 | 450,000 | $ | 17,487,334 | ||||||||||
Shares redeemed | (150,000 | ) | (5,748,102 | ) | (650,000 | ) | (24,854,938 | ) | ||||||||
Net decrease | (50,000 | ) | $ | (2,061,177 | ) | (200,000 | ) | $ | (7,367,604 | ) | ||||||
MSCI Germany Small-Cap | ||||||||||||||||
Shares sold | 100,000 | $ | 5,988,823 | — | $ | — | ||||||||||
Shares redeemed | (200,000 | ) | (11,561,447 | ) | (250,000 | ) | (13,513,268 | ) | ||||||||
Net decrease | (100,000 | ) | $ | (5,572,624 | ) | (250,000 | ) | $ | (13,513,268 | ) | ||||||
MSCI Ireland | ||||||||||||||||
Shares sold | 100,000 | $ | 4,420,595 | — | $ | — | ||||||||||
Shares redeemed | (50,000 | ) | (2,240,245 | ) | (100,000 | ) | (4,009,826 | ) | ||||||||
Net increase(decrease) | 50,000 | $ | 2,180,350 | (100,000 | ) | $ | (4,009,826 | ) | ||||||||
MSCI New Zealand | ||||||||||||||||
Shares sold | 400,000 | $ | 21,047,199 | 2,200,000 | $ | 111,008,317 | ||||||||||
Shares redeemed | (950,000 | ) | (52,851,485 | ) | (1,900,000 | ) | (94,073,753 | ) | ||||||||
Net increase(decrease) | (550,000 | ) | $ | (31,804,286 | ) | 300,000 | $ | 16,934,564 | ||||||||
MSCI Norway | ||||||||||||||||
Shares sold | 200,000 | $ | 4,704,963 | 700,000 | $ | 19,177,539 | ||||||||||
Shares redeemed | (450,000 | ) | (10,519,381 | ) | (800,000 | ) | (19,452,869 | ) | ||||||||
Net decrease | (250,000 | ) | $ | (5,814,418 | ) | (100,000 | ) | $ | (275,330 | ) |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
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Notes to Financial Statements (unaudited) (continued)
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. FOREIGN WITHHOLDING TAX CLAIMS
The iShares MSCI Finland ETF has filed claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded receivables for all recoverable taxes withheld by Finland based upon recent favorable determinations made by the Finnish tax authorities. Professional and other fees associated with the filing of these claims for foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon statutes of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables and payables recorded. Finnish tax claim receivables and related liabilities are disclosed in the statement of assets and liabilities.
The Fund, under the approval of the Board, is seeking a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the statement of assets and liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.
12. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
13. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 47 |
Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares MSCI Denmark ETF, iShares MSCI Finland ETF, iShares MSCI Germany Small-Cap ETF, iShares MSCI Ireland ETF, iShares MSCI New Zealand ETF and iShares MSCI Norway ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classification. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
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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.
Total Cumulative Distributions | % Breakdown of the Total Cumulative | |||||||||||||||||||||||||
for the Fiscal Year-to-Date | Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||||
Investment | Net Realized | Return of | Total Per | Investment | Net Realized | Return of | Total Per | |||||||||||||||||||
iShares ETF | Income | Capital Gains | Capital | Share | Income | Capital Gains | Capital | Share | ||||||||||||||||||
MSCI Denmark(a) | $ | 0.083123 | $ | — | $ | 0.020855 | $ | 0.103978 | 80% | — | % | 20 | % | 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. |
S u p p l e m e n t a l I n f o r m a t i o n | 49 |
Electronic Delivery
Shareholders can sign up for email 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
50 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-808-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report (Unaudited) |
iShares Trust
● | iShares MSCI India ETF | INDA | Cboe BZX |
● | iShares MSCI India Small-Cap ETF | SMIN | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® MSCI India ETF |
Investment Objective
The iShares MSCI India ETF (the “Fund”) seeks to track the investment results of an index composed of Indian equities, as represented by the MSCI India Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||
Fund NAV | (0.34 | )% | 0.39 | % | 0.59 | % | 3.81 | % | 0.39 | % | 2.97 | % | 35.29 | % | ||||||||||||||
Fund Market | 0.34 | (0.29 | ) | 0.27 | 3.82 | (0.29 | ) | 1.36 | 35.30 | |||||||||||||||||||
Index | (0.13 | ) | 0.88 | 1.39 | 4.54 | 0.88 | 7.12 | 43.09 |
The inception date of the Fund was 2/2/12. The first day of secondary market trading was 2/3/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 996.60 | $ | 3.47 | $ | 1,000.00 | $ | 1,021.40 | $ | 3.52 | 0.70 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Financials | 30.0 | % | ||
Information Technology | 15.3 | |||
Energy | 13.9 | |||
Consumer Staples | 10.6 | |||
Materials | 7.8 | |||
Consumer Discretionary | 7.5 | |||
Communication Services | 4.8 | |||
Health Care | 3.8 | |||
Industrials | 3.7 | |||
Utilities | 2.3 | |||
Real Estate | 0.3 |
TEN LARGEST HOLDINGS
Sector | Percent of Total Investments | (a) | ||
Reliance Industries Ltd. | 10.6 | % | ||
Housing Development Finance Corp. Ltd. | 10.0 | |||
Infosys Ltd. | 7.0 | |||
ICICI Bank Ltd. | 6.6 | |||
Tata Consultancy Services Ltd. | 5.0 | |||
Axis Bank Ltd. | 4.1 | |||
Hindustan Unilever Ltd. | 3.9 | |||
Bharti Airtel Ltd. | 3.6 | |||
Bajaj Finance Ltd. | 2.2 | |||
ITC Ltd. | 1.9 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® MSCI India Small-Cap ETF |
Investment Objective
The iShares MSCI India Small-Cap ETF(the “Fund”) seeks to track the investment results of an index composed of small-capitalization Indian equities, as represented by the MSCI India Small Cap Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||
Fund NAV | 7.75 | % | 1.03 | % | 1.10 | % | 5.67 | % | 1.03 | % | 5.61 | % | 55.99 | % | ||||||||||||||
Fund Market | 7.62 | (0.88 | ) | 0.56 | 5.55 | (0.88 | ) | 2.83 | 54.51 | |||||||||||||||||||
Index | 7.87 | 1.51 | 1.93 | 6.41 | 1.51 | 10.05 | 65.04 |
The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,077.50 | $ | 4.13 | $ | 1,000.00 | $ | 1,020.90 | $ | 4.02 | 0.80 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Financials | 21.5 | % | ||
Consumer Discretionary | 16.0 | |||
Materials | 14.2 | |||
Industrials | 13.4 | |||
Health Care | 11.7 | |||
Utilities | 6.1 | |||
Information Technology | 5.1 | |||
Consumer Staples | 4.9 | |||
Real Estate | 3.6 | |||
Communication Services | 2.7 | |||
Energy | 0.8 |
TEN LARGEST HOLDINGS
Sector | Percent of Total Investments | (a) | ||
AU Small Finance Bank Ltd. | 2.5 | % | ||
Apollo Hospitals Enterprise Ltd. | 2.1 | |||
Jubilant Foodworks Ltd. | 1.9 | |||
Federal Bank Ltd. | 1.9 | |||
Crompton Greaves Consumer Electricals Ltd. | 1.5 | |||
RBL Bank Ltd. | 1.5 | |||
Tata Consumer Products Ltd. | 1.5 | |||
Indraprastha Gas Ltd. | 1.4 | |||
Max Financial Services Ltd. | 1.3 | |||
Balkrishna Industries Ltd. | 1.2 |
(a) | Excludes money market funds. |
4 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Past performance is no guarantee of future results. 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
A b o u t F u n d P e r f o r m a n c e / S h a r e h o l d e r E x p e n s e s | 5 |
Consolidated Schedule of Investments (unaudited) | iShares® MSCI India ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.3% | ||||||||
InterGlobe Aviation Ltd.(a) | 926,692 | $ | 16,693,746 | |||||
Auto Components — 0.8% | ||||||||
Bharat Forge Ltd. | 2,103,375 | 12,690,054 | ||||||
Bosch Ltd. | 71,143 | 11,956,273 | ||||||
Motherson Sumi Systems Ltd. | 9,509,800 | 13,658,375 | ||||||
38,304,702 | ||||||||
Automobiles — 5.3% | ||||||||
Bajaj Auto Ltd. | 842,361 | 33,732,958 | ||||||
Eicher Motors Ltd. | 134,310 | 30,898,419 | ||||||
Hero MotoCorp Ltd. | 982,438 | 27,931,093 | ||||||
Mahindra & Mahindra Ltd. | 7,487,437 | 47,419,310 | ||||||
Maruti Suzuki India Ltd. | 1,061,318 | 92,401,249 | ||||||
Tata Motors Ltd.(b) | 17,053,756 | 30,471,914 | ||||||
262,854,943 | ||||||||
Banks — 12.6% | ||||||||
Axis Bank Ltd. | 20,943,346 | 202,359,721 | ||||||
Bandhan Bank Ltd.(a) | 4,042,026 | 21,479,433 | ||||||
ICICI Bank Ltd. | 48,028,213 | 330,924,986 | ||||||
State Bank of India(b) | 17,916,892 | 75,225,250 | ||||||
629,989,390 | ||||||||
Beverages — 0.6% | ||||||||
United Spirits Ltd.(b) | 2,917,574 | 27,747,628 | ||||||
Capital Markets — 0.4% | ||||||||
HDFC Asset Management Co. Ltd.(a) | 426,890 | 18,582,218 | ||||||
Chemicals — 3.1% | ||||||||
Asian Paints Ltd. | 2,888,519 | 71,963,318 | ||||||
Berger Paints India Ltd. | 2,339,360 | 18,365,114 | ||||||
Pidilite Industries Ltd. | 1,223,786 | 25,658,511 | ||||||
UPL Ltd. | 5,368,515 | 38,660,301 | ||||||
154,647,244 | ||||||||
Construction & Engineering — 1.6% | ||||||||
Larsen & Toubro Ltd. | 4,790,279 | 78,826,284 | ||||||
Construction Materials — 2.6% | ||||||||
Ambuja Cements Ltd. | 5,979,531 | 16,989,681 | ||||||
Grasim Industries Ltd. | 2,971,328 | 28,293,853 | ||||||
Shree Cement Ltd. | 86,952 | 27,315,404 | ||||||
UltraTech Cement Ltd. | 1,014,000 | 59,288,106 | ||||||
131,887,044 | ||||||||
Consumer Finance — 2.8% | ||||||||
Bajaj Finance Ltd. | 1,811,024 | 112,069,304 | ||||||
Mahindra & Mahindra Financial Services Ltd. | 3,038,810 | 14,453,480 | ||||||
Shriram Transport Finance Co. Ltd. | 834,550 | 13,834,097 | ||||||
140,356,881 | ||||||||
Diversified Financial Services — 0.2% | ||||||||
REC Ltd. | 6,940,940 | 11,329,792 | ||||||
Diversified Telecommunication Services — 0.2% | ||||||||
Bharti Infratel Ltd. | 3,345,965 | 9,942,733 | ||||||
Electric Utilities — 1.1% | ||||||||
Power Grid Corp. of India Ltd. | 18,379,990 | 46,225,353 | ||||||
Tata Power Co. Ltd. (The) | 11,157,992 | 7,220,400 | ||||||
53,445,753 | ||||||||
Electrical Equipment — 0.4% | ||||||||
Havells India Ltd. | 2,512,550 | 21,343,663 |
Security | Shares | Value | ||||||
Food & Staples Retailing — 0.8% | ||||||||
Avenue Supermarts Ltd.(a)(b) | 1,258,750 | $ | 40,534,480 | |||||
Food Products — 1.5% | ||||||||
Britannia Industries Ltd. | 579,336 | 23,843,749 | ||||||
Nestle India Ltd. | 232,306 | 50,791,860 | ||||||
74,635,609 | ||||||||
Gas Utilities — 0.5% | ||||||||
GAIL India Ltd. | 15,845,329 | 22,922,401 | ||||||
Household Products — 3.9% | ||||||||
Hindustan Unilever Ltd. | 6,519,064 | 196,450,403 | ||||||
Independent Power and Renewable Electricity Producers — 0.7% | ||||||||
NTPC Ltd. | 23,836,972 | 35,193,534 | ||||||
Industrial Conglomerates — 0.3% | ||||||||
Siemens Ltd. | 715,176 | 12,920,092 | ||||||
Insurance — 3.7% | ||||||||
Bajaj Finserv Ltd. | 383,397 | 48,083,007 | ||||||
HDFC Life Insurance Co. Ltd.(a) | 5,064,616 | 38,184,191 | ||||||
ICICI Lombard General Insurance Co. Ltd.(a) | 1,824,639 | 31,266,703 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(a) | 3,459,121 | 22,595,069 | ||||||
SBI Life Insurance Co. Ltd.(a) | 3,513,297 | 43,346,931 | ||||||
183,475,901 | ||||||||
Interactive Media & Services — 0.4% | ||||||||
Info Edge India Ltd. | 613,752 | 22,055,271 | ||||||
IT Services — 15.2% | ||||||||
HCL Technologies Ltd. | 10,895,850 | 80,676,169 | ||||||
Infosys Ltd. . | 34,196,798 | 346,718,358 | ||||||
Tata Consultancy Services Ltd. . | 9,039,871 | 250,543,499 | ||||||
Tech Mahindra Ltd. | 4,650,329 | 47,967,644 | ||||||
Wipro Ltd. | 11,469,216 | 35,193,929 | ||||||
761,099,599 | ||||||||
Life Sciences Tools & Services — 0.5% | ||||||||
Divi's Laboratories Ltd. | 799,447 | 23,340,075 | ||||||
Machinery — 0.2% | ||||||||
Ashok Leyland Ltd. | 11,789,621 | 11,419,192 | ||||||
Media — 0.6% | ||||||||
Zee Entertainment Enterprises Ltd. | 8,677,137 | 28,772,493 | ||||||
Metals & Mining — 2.0% | ||||||||
Hindalco Industries Ltd. | 11,723,713 | 25,326,177 | ||||||
JSW Steel Ltd.. | 8,492,342 | 27,736,100 | ||||||
Tata Steel Ltd. | 3,504,803 | 18,539,627 | ||||||
Vedanta Ltd. | 18,656,451 | 29,470,820 | ||||||
101,072,724 | ||||||||
Oil, Gas & Consumable Fuels — 13.9% | ||||||||
Bharat Petroleum Corp. Ltd. . | 6,532,448 | 38,592,292 | ||||||
Coal India Ltd. | 12,372,177 | 28,869,984 | ||||||
Hindustan Petroleum Corp. Ltd. | 6,118,402 | 16,748,402 | ||||||
Indian Oil Corp. Ltd. | 18,899,688 | 27,694,489 | ||||||
Oil & Natural Gas Corp. Ltd. | 25,254,033 | 32,176,649 | ||||||
Petronet LNG Ltd. | 6,022,757 | 20,496,610 | ||||||
Reliance Industries Ltd. . | 28,634,557 | 527,180,575 | ||||||
691,759,001 | ||||||||
Personal Products — 1.9% | ||||||||
Colgate-Palmolive India Ltd. | 655,588 | 11,676,902 | ||||||
Dabur India Ltd. | 5,321,297 | 36,580,115 |
6 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Consolidated Schedule of Investments (unaudited) (continued) | iShares® MSCI India ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Personal Products (continued) | ||||||||
Godrej Consumer Products Ltd. | 3,591,659 | $ | 27,895,172 | |||||
Marico Ltd. | 4,535,441 | 18,775,252 | ||||||
94,927,441 | ||||||||
Pharmaceuticals — 3.3% | ||||||||
Aurobindo Pharma Ltd. | 2,646,739 | 18,539,184 | ||||||
Cipla Ltd. | 3,479,948 | 19,389,436 | ||||||
Dr. Reddy's Laboratories Ltd. | 1,147,862 | 46,557,063 | ||||||
Lupin Ltd. | 2,227,126 | 19,750,728 | ||||||
Piramal Enterprises Ltd. | 1,017,257 | 18,416,838 | ||||||
Sun Pharmaceutical Industries Ltd. | 8,429,316 | 43,555,505 | ||||||
166,208,754 | ||||||||
Real Estate Management & Development — 0.3% | ||||||||
DLF Ltd. | 5,963,035 | 16,666,008 | ||||||
Road & Rail — 0.3% | ||||||||
Container Corp. of India Ltd. | 2,079,595 | 14,686,190 | ||||||
Textiles, Apparel & Luxury Goods — 1.4% | ||||||||
Page Industries Ltd. | 54,909 | 16,850,008 | ||||||
Titan Co. Ltd. | 3,119,058 | 54,219,119 | ||||||
71,069,127 | ||||||||
Thrifts & Mortgage Finance — 10.2% | ||||||||
Housing Development Finance Corp. Ltd. | 16,480,642 | 496,868,491 | ||||||
LIC Housing Finance Ltd. | 2,989,419 | 13,265,825 | ||||||
510,134,316 | ||||||||
Tobacco — 1.9% | ||||||||
ITC Ltd. | 34,540,604 | 94,550,820 |
Security | Shares | Value | ||||||
Transportation Infrastructure — 0.6% | ||||||||
Adani Ports & Special Economic Zone Ltd. | 6,118,366 | $ | 29,011,741 | |||||
Wireless Telecommunication Services — 3.6% | ||||||||
Bharti Airtel Ltd.(b) | 24,642,412 | 178,755,017 | ||||||
Total Common Stocks — 99.7% | ||||||||
(Cost: $3,921,813,047) | 4,977,612,210 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 36,358,000 | 36,358,000 | ||||||
Total Short-Term Investments — 0.7% | ||||||||
(Cost: $36,358,000) | 36,358,000 | |||||||
Total Investments in Securities — 100.4% | ||||||||
(Cost: $3,958,171,047) | 5,013,970,210 | |||||||
Other Assets, Less Liabilities — (0.4)% | (17,836,844 | ) | ||||||
Net Assets — 100.0% | $ | 4,996,133,366 |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Non-income producing security. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 38,584,000 | (2,226,000 | ) | 36,358,000 | $ | 36,358,000 | $ | 343,835 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
MSCI India NTR Index | 200 | 03/20/20 | $ | 12,788 | $ | (663,114 | ) |
C o n s o l i d a t e d S c h e d u l e o f I n v e s t m e n t s | 7 |
Consolidated Schedule of Investments (unaudited) (continued) | iShares® MSCI India ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:
Equity Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 663,114 |
(a) | Net cumulative appreciation (depreciation) on futures contracts are reported in the Consolidated Schedule of Investments. In the Consolidated 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 110,880 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (706,420 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 5,334,067 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 4,977,612,210 | $ | — | $ | — | $ | 4,977,612,210 | ||||||||
Money Market Funds | 36,358,000 | — | — | 36,358,000 | ||||||||||||
$ | 5,013,970,210 | $ | — | $ | — | $ | 5,013,970,210 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (663,114 | ) | $ | — | $ | — | $ | (663,114 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to consolidated financial statements
8 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Consolidated Schedule of Investments (unaudited) | iShares® MSCI India Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
Blue Dart Express Ltd. | 14,151 | $ | 538,941 | |||||
Airlines — 0.2% | ||||||||
SpiceJet Ltd.(a) | 428,505 | 494,903 | ||||||
Auto Components — 4.9% | ||||||||
Apollo Tyres Ltd. | 772,581 | 1,528,729 | ||||||
Balkrishna Industries Ltd. | 231,186 | 3,512,278 | ||||||
Ceat Ltd. | 54,537 | 771,721 | ||||||
Endurance Technologies Ltd.(b) | 83,952 | 1,141,773 | ||||||
Exide Industries Ltd. | 610,878 | 1,391,178 | ||||||
Mahindra CIE Automotive Ltd.(a) | 274,275 | 504,331 | ||||||
Minda Industries Ltd. | 187,620 | 969,980 | ||||||
Sundram Fasteners Ltd. | 150,414 | 865,478 | ||||||
Suprajit Engineering Ltd. | 99,852 | 274,025 | ||||||
Tube Investments of India Ltd. | 212,901 | 1,557,650 | ||||||
WABCO India Ltd. | 13,674 | 1,282,998 | ||||||
13,800,141 | ||||||||
Automobiles — 0.2% | ||||||||
Maharashtra Scooters Ltd. | 8,320 | 493,361 | ||||||
Banks — 9.6% | ||||||||
AU Small Finance Bank Ltd.(b) | 430,572 | 6,938,195 | ||||||
City Union Bank Ltd. | 881,973 | 2,630,612 | ||||||
DCB Bank Ltd. | 455,694 | 1,021,669 | ||||||
Federal Bank Ltd. | 4,411,137 | 5,250,517 | ||||||
IDFC First Bank Ltd.(a) | 5,721,138 | 2,917,350 | ||||||
Jammu & Kashmir Bank Ltd. (The)(a) | 575,421 | 157,475 | ||||||
Karnataka Bank Ltd. (The) | 416,262 | 401,452 | ||||||
Karur Vysya Bank Ltd. (The) | 957,021 | 554,314 | ||||||
RBL Bank Ltd.(b) | 1,080,723 | 4,356,287 | ||||||
South Indian Bank Ltd. (The) | 2,686,941 | 344,396 | ||||||
Yes Bank Ltd. | 5,640,843 | 2,704,447 | ||||||
27,276,714 | ||||||||
Beverages — 1.1% | ||||||||
Radico Khaitan Ltd. | 160,908 | 915,047 | ||||||
Varun Beverages Ltd. | 207,177 | 2,334,231 | ||||||
3,249,278 | ||||||||
Building Products — 1.9% | ||||||||
Astral Poly Technik Ltd. | 179,988 | 2,854,170 | ||||||
Blue Star Ltd. | 69,006 | 767,392 | ||||||
Cera Sanitaryware Ltd. | 13,992 | 483,203 | ||||||
Kajaria Ceramics Ltd. | 189,846 | 1,379,634 | ||||||
5,484,399 | ||||||||
Capital Markets — 4.0% | ||||||||
BSE Ltd. | 32,754 | 205,599 | ||||||
CRISIL Ltd. | 53,901 | 1,134,597 | ||||||
Edelweiss Financial Services Ltd. | 1,364,697 | 1,651,800 | ||||||
ICICI Securities Ltd.(b) | 191,913 | 1,266,345 | ||||||
IIFL Wealth Management Ltd. | 77,910 | 1,580,439 | ||||||
Indiabulls Ventures Ltd. | 555,705 | 1,308,651 | ||||||
Indian Energy Exchange Ltd.(a)(b) | 126,384 | 308,572 | ||||||
JM Financial Ltd. | 601,338 | 880,749 | ||||||
Motilal Oswal Financial Services Ltd. | 106,371 | 1,097,426 | ||||||
Multi Commodity Exchange of India Ltd. | 74,730 | 1,323,120 | ||||||
Tata Investment Corp. Ltd. | 36,888 | 464,809 | ||||||
11,222,107 |
Security | Shares | Value | ||||||
Chemicals — 9.7% | ||||||||
Aarti Industries Ltd. | 125,292 | $ | 1,694,547 | |||||
Aarti Surfactants Ltd.(a) | 5,688 | 37,903 | ||||||
Akzo Nobel India Ltd. | 27,189 | 885,566 | ||||||
Atul Ltd. | 43,407 | 3,093,781 | ||||||
BASF India Ltd. | 31,641 | 450,210 | ||||||
Bayer CropScience Ltd./India | 32,277 | 1,959,877 | ||||||
Chambal Fertilizers and Chemicals Ltd. | 297,648 | 581,129 | ||||||
Coromandel International Ltd. | 210,516 | 1,795,443 | ||||||
Deepak Nitrite Ltd. | 97,944 | 626,880 | ||||||
EID Parry India Ltd. | 162,498 | 424,216 | ||||||
Finolex Industries Ltd. | 100,170 | 753,834 | ||||||
Galaxy Surfactants Ltd. | 25,281 | 565,225 | ||||||
Gujarat Alkalies & Chemicals Ltd. | 52,470 | 245,964 | ||||||
Gujarat Fluorochemicals Ltd.(a) | 78,546 | 548,546 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. | 110,028 | 237,612 | ||||||
Gulf Oil Lubricants India Ltd. | 36,411 | 398,910 | ||||||
Himadri Speciality Chemical Ltd. | 243,906 | 166,451 | ||||||
Linde India Ltd. | 61,692 | 557,102 | ||||||
Navin Fluorine International Ltd. | 35,457 | 702,679 | ||||||
Phillips Carbon Black Ltd. | 155,979 | 229,319 | ||||||
PI Industries Ltd. | 165,042 | 3,501,861 | ||||||
Rain Industries Ltd. | 240,090 | 343,663 | ||||||
Rallis India Ltd. | 139,125 | 431,732 | ||||||
SRF Ltd. | 41,181 | 2,221,922 | ||||||
Supreme Industries Ltd. | 114,162 | 2,086,847 | ||||||
Tata Chemicals Ltd. | 183,963 | 1,820,066 | ||||||
Vinati Organics Ltd. | 73,776 | 960,696 | ||||||
27,321,981 | ||||||||
Communications Equipment — 0.1% | ||||||||
Sterlite Technologies Ltd. | 287,631 | 366,476 | ||||||
Construction & Engineering — 2.9% | ||||||||
Ashoka Buildcon Ltd.(a) | 199,941 | 250,316 | ||||||
Dilip Buildcon Ltd.(b) | 97,467 | 404,090 | ||||||
Engineers India Ltd. . . | 458,397 | 444,629 | ||||||
GE Power India Ltd. | 48,813 | 475,735 | ||||||
IRB Infrastructure Developers Ltd.(a) | 417,375 | 485,807 | ||||||
Kalpataru Power Transmission Ltd. | 109,869 | 505,518 | ||||||
KEC International Ltd. | 184,758 | 793,896 | ||||||
NBCC India Ltd. | 1,302,846 | 476,601 | ||||||
NCC Ltd./India | 1,175,328 | 579,786 | ||||||
PNC Infratech Ltd. | 183,327 | 435,534 | ||||||
Sadbhav Engineering Ltd. | 250,107 | 244,328 | ||||||
Sterling & Wilson Solar Ltd.(a) | 119,568 | 275,694 | ||||||
Voltas Ltd.. . . | 297,966 | 2,802,431 | ||||||
8,174,365 | ||||||||
Construction Materials — 2.4% | ||||||||
Birla Corp. Ltd. | 55,014 | 527,938 | ||||||
Dalmia Bharat Ltd.(a) | 138,171 | 1,497,399 | ||||||
HeidelbergCement India Ltd. | 161,862 | 450,592 | ||||||
India Cements Ltd. (The) | 512,457 | 684,175 | ||||||
JK Cement Ltd. | 55,491 | 1,066,914 | ||||||
JK Lakshmi Cement Ltd. | 87,291 | 372,424 | ||||||
Prism Johnson Ltd. | 359,340 | 300,747 | ||||||
Ramco Cements Ltd. (The) | 170,130 | 1,815,458 | ||||||
6,715,647 | ||||||||
Consumer Finance — 2.4% | ||||||||
Cholamandalam Financial Holdings Ltd.(a) | 212,901 | 1,513,399 | ||||||
Equitas Holdings Ltd./India(a) | 494,013 | 738,273 |
C o n s o l i d a t e d S c h e d u l e o f I n v e s t m e n t s | 9 |
Consolidated Schedule of Investments (unaudited) (continued) | iShares® MSCI India Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Consumer Finance (continued) | ||||||||
Manappuram Finance Ltd. | 634,092 | $ | 1,429,985 | |||||
Repco Home Finance Ltd. | 91,107 | 358,785 | ||||||
Spandana Sphoorty Financial Ltd.(a) | 48,018 | 721,792 | ||||||
Sundaram Finance Ltd. | 79,977 | 1,749,703 | ||||||
Ujjivan Financial Services Ltd. | 86,655 | 405,132 | ||||||
6,917,069 | ||||||||
Diversified Financial Services — 1.4% | ||||||||
IDFC Ltd. | 2,290,554 | 1,020,422 | ||||||
Power Finance Corp. Ltd. | 1,893,690 | 2,871,991 | ||||||
3,892,413 | ||||||||
Diversified Telecommunication Services — 0.5% | ||||||||
HFCL Ltd. | 1,552,635 | 313,033 | ||||||
Tata Communications Ltd. | 203,838 | 1,019,367 | ||||||
1,332,400 | ||||||||
Electric Utilities — 2.1% | ||||||||
Adani Transmission Ltd.(a) | 822,507 | 2,870,953 | ||||||
CESC Ltd. | 177,921 | 1,594,984 | ||||||
Torrent Power Ltd. | 344,394 | 1,445,722 | ||||||
5,911,659 | ||||||||
Electrical Equipment — 2.0% | ||||||||
Amara Raja Batteries Ltd. | 61,374 | 542,325 | ||||||
Finolex Cables Ltd. | 206,064 | 927,420 | ||||||
GE T&D India Ltd. | 183,009 | 305,575 | ||||||
Graphite India Ltd. | 175,695 | 543,025 | ||||||
HEG Ltd. | 29,097 | 353,333 | ||||||
KEI Industries Ltd. | 130,221 | 885,072 | ||||||
Polycab India Ltd.(a) | 89,040 | 1,311,155 | ||||||
V-Guard Industries Ltd. | 308,937 | 868,795 | ||||||
5,736,700 | ||||||||
Electronic Equipment, Instruments & Components — 0.4% | ||||||||
Redington India Ltd. | 696,261 | 1,060,781 | ||||||
Entertainment — 1.2% | ||||||||
Chennai Super Kings Cricket Ltd., NVS(c) | 206,787 | 29 | ||||||
Inox Leisure Ltd. | 138,966 | 825,795 | ||||||
PVR Ltd. | 99,852 | 2,639,106 | ||||||
3,464,930 | ||||||||
Food Products — 2.7% | ||||||||
Avanti Feeds Ltd. | 98,262 | 630,004 | ||||||
Balrampur Chini Mills Ltd. | 363,951 | 720,161 | ||||||
CCL Products India Ltd. | 158,841 | 515,915 | ||||||
Future Consumer Ltd.(a) | 1,720,857 | 293,297 | ||||||
Kaveri Seed Co. Ltd. | 72,027 | 427,766 | ||||||
KRBL Ltd. | 140,079 | 484,965 | ||||||
Tata Consumer Products Ltd. | 887,538 | 4,257,059 | ||||||
Venky's India Ltd. | 9,959 | 169,131 | ||||||
7,498,298 | ||||||||
Gas Utilities — 3.1% | ||||||||
Gujarat Gas Ltd. | 493,536 | 1,888,181 | ||||||
Gujarat State Petronet Ltd. | 406,245 | 1,269,102 | ||||||
Indraprastha Gas Ltd. | 628,209 | 3,851,036 | ||||||
Mahanagar Gas Ltd. | 118,296 | 1,647,875 | ||||||
8,656,194 | ||||||||
Health Care Providers & Services — 4.0% | ||||||||
Apollo Hospitals Enterprise Ltd. | 249,948 | 6,011,844 | ||||||
Dr Lal PathLabs Ltd.(b) | 74,571 | 1,682,375 | ||||||
Fortis Healthcare Ltd.(a) | 1,239,882 | 2,646,674 |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
Metropolis Healthcare Ltd.(a) | 37,524 | $ | 962,206 | |||||
11,303,099 | ||||||||
Hotels, Restaurants & Leisure — 3.9% | ||||||||
Chalet Hotel Ltd.(a) | 147,234 | 670,196 | ||||||
EIH Ltd. . | 425,643 | 777,650 | ||||||
Indian Hotels Co. Ltd. (The) | 1,424,958 | 2,665,595 | ||||||
Jubilant Foodworks Ltd. | 217,194 | 5,287,384 | ||||||
Lemon Tree Hotels Ltd.(a)(b) | 1,158,633 | 828,426 | ||||||
Westlife Development Ltd.(a) | 111,300 | 693,316 | ||||||
10,922,567 | ||||||||
Household Durables — 3.0% | ||||||||
Bajaj Electricals Ltd. . . . | 81,515 | 455,538 | ||||||
Bajaj Electricals Ltd./New . . | 8,040 | 10,394 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 1,127,310 | 4,358,187 | ||||||
IFB Industries Ltd.(a) | 29,733 | 196,339 | ||||||
Johnson Controls-Hitachi Air Conditioning India Ltd. | 19,716 | 774,857 | ||||||
LA Opala RG Ltd. | 116,706 | 350,680 | ||||||
Orient Electric Ltd. | 150,732 | 548,059 | ||||||
Symphony Ltd. | 50,085 | 881,740 | ||||||
TTK Prestige Ltd. | 10,017 | 790,707 | ||||||
8,366,501 | ||||||||
Household Products — 0.2% | ||||||||
Jyothy Labs Ltd. . | 262,032 | 447,144 | ||||||
Independent Power and Renewable Electricity Producers — 0.9% | ||||||||
Adani Power Ltd.(a) | 2,303,274 | 1,509,611 | ||||||
JSW Energy Ltd.. | 978,804 | 777,157 | ||||||
PTC India Ltd. | 538,215 | 371,401 | ||||||
2,658,169 | ||||||||
Industrial Conglomerates — 0.5% | ||||||||
Godrej Industries Ltd. | 241,521 | 1,312,063 | ||||||
Insurance — 1.3% | ||||||||
Max Financial Services Ltd.(a) | 467,301 | 3,738,149 | ||||||
Interactive Media & Services — 0.2% | ||||||||
Just Dial Ltd.(a) | 107,325 | 693,168 | ||||||
IT Services — 3.9% | ||||||||
eClerx Services Ltd. | 55,809 | 419,645 | ||||||
Firstsource Solutions Ltd. | 501,327 | 277,869 | ||||||
Hexaware Technologies Ltd. | 355,842 | 1,772,615 | ||||||
Mindtree Ltd. | 122,748 | 1,605,627 | ||||||
Mphasis Ltd. | 278,727 | 3,366,121 | ||||||
NIIT Technologies Ltd. | 55,809 | 1,306,728 | ||||||
Persistent Systems Ltd. | 111,618 | 1,077,088 | ||||||
Sonata Software Ltd. | 93,810 | 435,399 | ||||||
Vakrangee Ltd. | 1,262,937 | 691,253 | ||||||
10,952,345 | ||||||||
Life Sciences Tools & Services — 0.5% | ||||||||
Dishman Carbogen Amcis Ltd. | 195,888 | 209,141 | ||||||
Syngene International Ltd.(b) | 285,723 | 1,189,333 | ||||||
1,398,474 | ||||||||
Machinery — 3.5% | ||||||||
AIA Engineering Ltd. | 112,890 | 2,797,945 | ||||||
BEML Ltd. | 29,733 | 307,290 | ||||||
Carborundum Universal Ltd. | 135,150 | 609,105 | ||||||
Cochin Shipyard Ltd.(b) | 95,400 | 447,868 | ||||||
Escorts Ltd. | 165,360 | 1,787,471 | ||||||
Greaves Cotton Ltd. | 166,473 | 299,763 |
10 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Consolidated Schedule of Investments (unaudited) (continued) | iShares® MSCI India Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Lakshmi Machine Works Ltd. | 7,632 | $ | 341,929 | |||||
Schaeffler India Ltd. | 22,419 | 1,356,230 | ||||||
Thermax Ltd. | 85,860 | 1,097,826 | ||||||
Timken India Ltd. | 54,297 | 714,192 | ||||||
9,759,619 | ||||||||
Media — 0.2% | ||||||||
Dish TV India Ltd.(a) | 1,631,658 | 186,527 | ||||||
TV18 Broadcast Ltd.(a) | 1,343,709 | 419,865 | ||||||
606,392 | ||||||||
Metals & Mining — 1.8% | ||||||||
APL Apollo Tubes Ltd. | 17,331 | 466,731 | ||||||
Jindal Saw Ltd. | 332,787 | 350,460 | ||||||
Jindal Steel & Power Ltd.(a) | 1,220,166 | 2,602,051 | ||||||
MOIL Ltd. | 168,186 | 281,524 | ||||||
National Aluminium Co. Ltd. | 1,339,575 | 621,828 | ||||||
Welspun Corp. Ltd. | 273,321 | 704,062 | ||||||
5,026,656 | ||||||||
Multiline Retail — 0.4% | ||||||||
Shoppers Stop Ltd. | 62,805 | 330,702 | ||||||
V-Mart Retail Ltd. | 24,486 | 756,812 | ||||||
1,087,514 | ||||||||
Oil, Gas & Consumable Fuels — 0.8% | ||||||||
Aegis Logistics Ltd. | 243,270 | 752,724 | ||||||
Chennai Petroleum Corp. Ltd.(a) | 107,961 | 151,393 | ||||||
Great Eastern Shipping Co. Ltd. (The) | 148,347 | 496,939 | ||||||
Oil India Ltd. | 650,310 | 973,201 | ||||||
2,374,257 | ||||||||
Paper & Forest Products — 0.3% | ||||||||
Century Plyboards India Ltd. | 158,682 | 344,772 | ||||||
Century Textiles & Industries Ltd. | 80,613 | 566,053 | ||||||
910,825 | ||||||||
Personal Products — 0.8% | ||||||||
Bajaj Consumer Care Ltd.(a) | 214,014 | 570,269 | ||||||
Gillette India Ltd. | 19,557 | 1,570,739 | ||||||
2,141,008 | ||||||||
Pharmaceuticals — 7.1% | ||||||||
Ajanta Pharma Ltd. | 62,487 | 1,199,347 | ||||||
Alembic Pharmaceuticals Ltd. | 135,786 | 1,185,276 | ||||||
AstraZeneca Pharma India Ltd. | 14,946 | 533,949 | ||||||
Caplin Point Laboratories Ltd. | 55,332 | 229,325 | ||||||
Eris Lifesciences Ltd.(a)(b) | 102,714 | 617,202 | ||||||
FDC Ltd./India(a) | 124,179 | 403,678 | ||||||
Glenmark Pharmaceuticals Ltd. | 412,764 | 1,587,455 | ||||||
Granules India Ltd. | 370,629 | 807,842 | ||||||
Ipca Laboratories Ltd. | 132,129 | 2,492,449 | ||||||
Jubilant Life Sciences Ltd. | 213,855 | 1,500,326 | ||||||
Laurus Labs Ltd.(b) | 94,923 | 543,949 | ||||||
Natco Pharma Ltd. | 245,337 | 2,045,339 | ||||||
Pfizer Ltd. | 32,913 | 1,912,778 | ||||||
Procter & Gamble Health Ltd.(a) | 11,925 | 690,962 | ||||||
Sanofi India Ltd. | 16,536 | 1,671,106 | ||||||
Shilpa Medicare Ltd. | 85,701 | 543,057 | ||||||
Strides Pharma Science Ltd. | 131,493 | 856,638 | ||||||
Sun Pharma Advanced Research Co. Ltd.(a) | 194,616 | 393,587 | ||||||
Suven Life Sciences Ltd. | 133,280 | 114,410 | ||||||
Suven Pharmaceuticals Ltd.(a) | 133,280 | 517,425 | ||||||
Wockhardt Ltd.(a) | 83,793 | 356,861 | ||||||
20,202,961 |
Security | Shares | Value | ||||||
Professional Services — 1.3% | ||||||||
L&T Technology Services Ltd.(b) | 62,487 | $ | 1,403,430 | |||||
Quess Corp. Ltd.(a)(b) | 198,591 | 1,414,979 | ||||||
TeamLease Services Ltd.(a) | 30,846 | 992,453 | ||||||
3,810,862 | ||||||||
Real Estate Management & Development — 3.6% | ||||||||
Brigade Enterprises Ltd. | 144,690 | 464,239 | ||||||
Godrej Properties Ltd.(a) | 180,624 | 2,510,478 | ||||||
Hemisphere Properties India Ltd.(a) | 212,058 | 452,428 | ||||||
Indiabulls Real Estate Ltd.(a) | 610,401 | 636,050 | ||||||
NESCO Ltd. | 50,562 | 505,007 | ||||||
Oberoi Realty Ltd. | 163,770 | 1,157,231 | ||||||
Phoenix Mills Ltd. (The) | 160,590 | 1,905,807 | ||||||
Prestige Estates Projects Ltd. | 337,239 | 1,356,807 | ||||||
Sobha Ltd. . | 128,949 | 530,680 | ||||||
Sunteck Realty Ltd. | 152,640 | 732,346 | ||||||
10,251,073 | ||||||||
Software — 0.7% | ||||||||
Birlasoft Ltd.(a) | 410,616 | 510,372 | ||||||
KPIT Technologies Ltd.(a) | 455,376 | 515,841 | ||||||
Tata Elxsi Ltd. | 44,838 | 548,457 | ||||||
Zensar Technologies Ltd. | 161,067 | 304,982 | ||||||
1,879,652 | ||||||||
Specialty Retail — 0.4% | ||||||||
Arvind Fashions Ltd.(a) | 85,701 | 410,588 | ||||||
Future Lifestyle Fashions Ltd. | 149,937 | 724,052 | ||||||
1,134,640 | ||||||||
Textiles, Apparel & Luxury Goods — 3.2% | ||||||||
Aditya Birla Fashion and Retail Ltd.(a) | 554,910 | 1,933,064 | ||||||
Bata India Ltd. | 92,538 | 2,116,574 | ||||||
KPR Mill Ltd. | 49,926 | 409,204 | ||||||
Rajesh Exports Ltd. | 220,374 | 2,009,910 | ||||||
Raymond Ltd. | 79,500 | 556,255 | ||||||
TCNS Clothing Co. Ltd.(a)(b) | 55,491 | 460,352 | ||||||
Vardhman Textiles Ltd. | 41,022 | 599,805 | ||||||
VIP Industries Ltd. | 100,965 | 573,395 | ||||||
Welspun India Ltd. | 898,509 | 514,198 | ||||||
9,172,757 | ||||||||
Thrifts & Mortgage Finance — 2.6% | ||||||||
Aavas Financiers Ltd.(a) | 70,278 | 1,829,658 | ||||||
Can Fin Homes Ltd. | 95,241 | 659,927 | ||||||
IIFL Finance Ltd. | 380,169 | 858,136 | ||||||
Indiabulls Housing Finance Ltd. | 831,252 | 3,223,416 | ||||||
PNB Housing Finance Ltd.(b) | 176,649 | 880,950 | ||||||
7,452,087 | ||||||||
Tobacco — 0.2% | ||||||||
Godfrey Phillips India Ltd. | 37,206 | 592,393 | ||||||
Trading Companies & Distributors — 0.4% | ||||||||
Adani Enterprises Ltd. | 393,207 | 1,191,322 | ||||||
Transportation Infrastructure — 0.4% | ||||||||
GMR Infrastructure Ltd.(a) | 2,178,777 | 603,811 | ||||||
Gujarat Pipavav Port Ltd. | 647,766 | 643,121 | ||||||
1,246,932 |
C o n s o l i d a t e d S c h e d u l e o f I n v e s t m e n t s | 11 |
Consolidated Schedule of Investments (unaudited) (continued) | iShares® MSCI India Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Wireless Telecommunication Services — 0.5% | ||||||||
Vodafone Idea Ltd.(a) | 25,755,933 | $ | 1,374,030 | |||||
Total Common Stocks — 99.6% | ||||||||
(Cost: $272,212,481) | 281,615,416 | |||||||
Total Investments in Securities — 99.6% | ||||||||
(Cost: $272,212,481) | 281,615,416 | |||||||
Other Assets, Less Liabilities — 0.4% | 1,059,754 | |||||||
Net Assets — 100.0% | $ | 282,675,170 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares. | 310,000 | (310,000 | ) | — | $ | — | $ | 3,383 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
MSCI India NTR Index | 9 | 03/20/20 | $ | 575 | $ | (41,004 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:
Equity Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 41,004 |
(a) | Net cumulative appreciation (depreciation) on futures contracts are reported in the Consolidated Schedule of Investments. In the Consolidated 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (494 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (41,004 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 209,120 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.
12 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Consolidated Schedule of Investments (unaudited) (continued) | iShares® MSCI India Small-Cap ETF |
February 29, 2020 |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Consolidated Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 280,607,631 | $ | 1,007,756 | $ | 29 | $ | 281,615,416 | ||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (41,004 | ) | $ | — | $ | — | $ | (41,004 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to consolidated financial statements
C o n s o l i d a t e d S c h e d u l e o f I n v e s t m e n t s | 13 |
Consolidated Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares | ||||||||
MSCI India | ||||||||
iShares | Small-Cap | |||||||
MSCI India ETF | ETF | |||||||
ASSETS | ||||||||
Investments in securities, at value: | ||||||||
Unaffiliated(a) | $ | 4,977,612,210 | $ | 281,615,416 | ||||
Affiliated(b) | 36,358,000 | — | ||||||
Cash. | 16,093,591 | 860,833 | ||||||
Cash pledged: | ||||||||
Futures contracts | 210,000 | 24,000 | ||||||
Receivables: | ||||||||
Investments sold | 87,530,280 | 2,085,161 | ||||||
Dividends | 198,924 | 360,610 | ||||||
Total assets | 5,118,003,005 | 284,946,020 | ||||||
LIABILITIES | ||||||||
Foreign bank overdraft(c) | 13,046,113 | 928,055 | ||||||
Deferred foreign capital gain tax | 29,874,211 | — | ||||||
Payables: | ||||||||
Investments purchased | 15,079,987 | 1,139,196 | ||||||
Variation margin on futures contracts | 577,999 | 26,000 | ||||||
Capital shares redeemed | 60,476,690 | — | ||||||
Investment advisory fees | 2,814,639 | 177,599 | ||||||
Total liabilities | 121,869,639 | 2,270,850 | ||||||
NET ASSETS | $ | 4,996,133,366 | $ | 282,675,170 | ||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 4,700,510,358 | $ | 326,842,061 | ||||
Accumulated earnings (loss) | 295,623,008 | (44,166,891 | ) | |||||
NET ASSETS | $ | 4,996,133,366 | $ | 282,675,170 | ||||
Shares outstanding | 154,950,000 | 7,950,000 | ||||||
Net asset value | $ | 32.24 | $ | 35.56 | ||||
Shares authorized | Unlimited | Unlimited | ||||||
Par value | None | None | ||||||
(a) Investments, at cost — Unaffiliated | $ | 3,921,813,047 | $ | 272,212,481 | ||||
(b) Investments, at cost — Affiliated | $ | 36,358,000 | $ | — | ||||
(c) Foreign bank overdraft, at cost | $ | 13,034,228 | $ | 926,512 |
See notes to consolidated financial statements
14 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Consolidated Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | ||||||||
iShares | MSCI India | |||||||
MSCI India | Small-Cap | |||||||
ETF | ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Unaffiliated | $ | 19,337,376 | (a) | $ | 3,384,116 | |||
Dividends — Affiliated | 343,835 | 3,383 | ||||||
Interest — Unaffiliated | 3,045 | 26 | ||||||
Total investment income | 19,684,256 | 3,387,525 | ||||||
EXPENSES | ||||||||
Investment advisory fees | 16,974,475 | 1,068,881 | ||||||
Mauritius income taxes | 1,458,521 | 88,354 | ||||||
Total expenses | 18,432,996 | 1,157,235 | ||||||
Net investment income | 1,251,260 | 2,230,290 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated | (159,940,870 | ) | (13,372,148 | ) | ||||
Futures contracts | 110,880 | (494 | ) | |||||
Foreign currency transactions | (1,862,537 | ) | (36,297 | ) | ||||
Net realized loss | (161,692,527 | ) | (13,408,939 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated(b) | 131,321,627 | 32,332,064 | ||||||
Futures contracts | (706,420 | ) | (41,004 | ) | ||||
Foreign currency translations | (30,757 | ) | (4,458 | ) | ||||
Net change in unrealized appreciation (depreciation) | 130,584,450 | 32,286,602 | ||||||
Net realized and unrealized gain (loss) | (31,108,077 | ) | 18,877,663 | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (29,856,817 | ) | $ | 21,107,953 | |||
(a) Includes $5,332,433 related to a special distribution from Tata Consultancy Services Ltd. | ||||||||
(b) Net of deferred foreign capital gain tax of | $ | (9,899,559 | ) | $ | — |
See notes to consolidated financial statements
C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s | 15 |
Consolidated Statements of Changes in Net Assets
iShares | iShares | |||||||||||||||
MSCI India ETF | MSCI India Small-Cap ETF | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income. | $ | 1,251,260 | $ | 41,419,332 | $ | 2,230,290 | $ | 724,798 | ||||||||
Net realized loss | (161,692,527 | ) | (53,992,274 | ) | (13,408,939 | ) | (19,786,477 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 130,584,450 | (409,282,153 | ) | 32,286,602 | (53,254,637 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | (29,856,817 | ) | (421,855,095 | ) | 21,107,953 | (72,316,316 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
From net investment income | (5,098,193 | ) | (71,243,559 | ) | (3,363,930 | ) | (1,642,473 | ) | ||||||||
Return of capital | — | (13,794,003 | ) | — | — | |||||||||||
Decrease in net assets resulting from distributions to shareholders | (5,098,193 | ) | (85,037,562 | ) | (3,363,930 | ) | (1,642,473 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 131,339,475 | 324,521,530 | (5,501,973 | ) | 62,127,507 | |||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 96,384,465 | (182,371,127 | ) | 12,242,050 | (11,831,282 | ) | ||||||||||
Beginning of period | 4,899,748,901 | 5,082,120,028 | 270,433,120 | 282,264,402 | ||||||||||||
End of period | $ | 4,996,133,366 | $ | 4,899,748,901 | $ | 282,675,170 | $ | 270,433,120 |
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
See notes to consolidated financial statements.
16 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t T o S h a r e h o l d e r s |
Consolidated Financial Highlights
(For a share outstanding throughout each period)
iShares MSCI India ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 32.38 | $ | 35.68 | $ | 34.20 | $ | 29.61 | $ | 28.12 | $ | 30.83 | ||||||||||||
Net investment income(a) | 0.01 | (b) | 0.29 | 0.25 | 0.26 | 0.22 | 0.45 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (0.12 | ) | (3.00 | ) | 1.54 | 4.53 | 1.64 | (2.92 | ) | |||||||||||||||
Net increase (decrease) from investment operations | (0.11 | ) | (2.71 | ) | 1.79 | 4.79 | 1.86 | (2.47 | ) | |||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.49 | ) | (0.31 | ) | (0.20 | ) | (0.37 | ) | (0.24 | ) | ||||||||||||
Return of capital | — | (0.10 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.03 | ) | (0.59 | ) | (0.31 | ) | (0.20 | ) | (0.37 | ) | (0.24 | ) | ||||||||||||
Net asset value, end of period | $ | 32.24 | $ | 32.38 | $ | 35.68 | $ | 34.20 | $ | 29.61 | $ | 28.12 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (0.34 | )%(e) | (7.61 | )% | 5.26 | % | 16.27 | % | 6.73 | % | (8.05 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.70 | %(f) | 0.69 | % | 0.68 | % | 0.68 | % | 0.71 | % | 0.68 | % | ||||||||||||
Net investment income | 0.05 | %(b)(f) | 0.86 | % | 0.72 | % | 0.87 | % | 0.79 | % | 1.47 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 4,996,133 | $ | 4,899,749 | $ | 5,082,120 | $ | 5,263,819 | $ | 4,112,252 | $ | 3,583,362 | ||||||||||||
Portfolio turnover rate(g) | 12 | %(h)(e) | 9 | %(h) | 10 | %(h) | 13 | %(h) | 25 | %(h) | 30 | %(h) |
(a) | Based on average shares outstanding. |
(b) | Includes a one-time special distribution from Tata Consultancy Services Ltd. Excluding such special distribution, the net investment income would have been $(0.03) per share and (0.15)% of average net assets. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
(h) Portfolio turnover rate excluding cash creations was as follows: | 10 | % | 6 | % | 5 | % | 5 | % | 15 | % | 22 | % |
See notes to consolidated financial statements
C o n s o l i d a t e d F i n a n c i a l H i g h l i g h t s | 17 |
Consolidated Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI India ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 33.39 | $ | 44.10 | $ | 46.27 | $ | 36.01 | $ | 32.24 | $ | 31.44 | ||||||||||||
Net investment income(a) | 0.28 | 0.10 | (0.00 | )(b) | 0.09 | 0.07 | 0.21 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | 2.31 | (10.60 | ) | (1.06 | ) | 10.55 | 4.36 | 0.69 | ||||||||||||||||
Net increase (decrease) from investment operations | 2.59 | (10.50 | ) | (1.06 | ) | 10.64 | 4.43 | 0.90 | ||||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.42 | ) | (0.21 | ) | (0.63 | ) | (0.38 | ) | (0.66 | ) | (0.10 | ) | ||||||||||||
Return of capital | — | — | (0.48 | ) | — | — | — | |||||||||||||||||
Total distributions | (0.42 | ) | (0.21 | ) | (1.11 | ) | (0.38 | ) | (0.66 | ) | (0.10 | ) | ||||||||||||
Net asset value, end of period | $ | 35.56 | $ | 33.39 | $ | 44.10 | $ | 46.27 | $ | 36.01 | $ | 32.24 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 7.75 | %(e) | (23.88 | )% | (2.36 | )% | 29.97 | % | 13.99 | % | 2.87 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.80 | %(f) | 0.76 | % | 0.77 | % | 0.75 | % | 0.80 | % | 0.74 | % | ||||||||||||
Net investment income | 1.54 | %(f) | 0.28 | % | (0.00 | )%(g) | 0.21 | % | 0.23 | % | 0.62 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 282,675 | $ | 270,433 | $ | 282,264 | $ | 205,914 | $ | 64,825 | $ | 62,874 | ||||||||||||
Portfolio turnover rate(h) | 13 | %(e)(i) | 24 | %(i) | 49 | %(i) | 38 | %(i) | 53 | %(i) | 73 | %(i) |
(a) | Based on average shares outstanding. |
(b) | Rounds to less than $0.01. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Rounds to less than 0.01%. |
(h) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
(i) Portfolio turnover rate excluding cash creations was as follows: | 11 | % | 19 | % | 31 | % | 22 | % | 25 | % | 61 | % |
See notes to consolidated financial statements.
18 | 2 0 2 0 I S h a r e s S e m i - A n 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 Consolidated Financial Statements (unaudited)
1. ORGANIZATION
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These consolidated financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
Diversification | ||||
iShares ETF | Classification | |||
MSCI India | Non-diversified | |||
MSCI India Small-Cap | Diversified |
Basis of Consolidation: The accompanying consolidated financial statements for each Fund includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (each, a “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by each Fund in the preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment- in-kind interest income, if any, are recognized daily on the accrual basis.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the consolidated statement of assets and liabilities.
Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities and the same covers the period of any exists.
Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, each Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the FSC, each Subsidiary is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against each Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by each
n o t e s t o C o n s o l i d a t e d F i n a n c ia l H i g h l i g h t s | 19 |
Notes to Consolidated Financial Statements (unaudited) (continued)
Subsidiary and are disclosed in its consolidated statement of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.
The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied.
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 should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
● | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
● | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
● | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
● | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
● | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its consolidated schedule of investments. 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.
20 | 2 0 2 0 I S h a r e s S e m i - A n 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 Consolidated Financial Statements (unaudited) (continued)
4. DERIVATIVE FINANCIAL INSTRUMENTS
Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the consolidated schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the consolidated statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the consolidated statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the consolidated statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the iShares MSCI India ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $4 billion | 0.6500 | % | ||
Over $4 billion, up to and including $6 billion. | 0.6175 | |||
Over $6 billion, up to and including $8 billion. | 0.5867 | |||
Over $8 billion | 0.5573 |
For its investment advisory services to the iShares MSCI India Small-Cap ETF, BFA is entitled to an annual investment advisory fee of 0.74%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates. Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments
is shown as dividends – affiliated in the consolidated statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
C o n s o l i d a t e d F i n a n c i a l H i g h l i g h t s | 21 |
Notes to Consolidated Financial Statements (unaudited) (continued)
6. PURCHASES AND SALES
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI India. | $ | 767,261,567 | $ | 647,230,482 | ||||
MSCI India Small-Cap | 38,306,444 | 44,624,724 |
There were no in-kind transactions for the six months ended February 29, 2020.
7. INCOME TAX INFORMATION
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ consolidated financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Sales | |||||||
MSCI India. | $ | 342,383,502 | ||||||
MSCI India Small-Cap | 24,706,178 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, 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:
Gross Unrealized | Gross Unrealized | Net Unrealized Appreciation | ||||||||||||||
iShares ETF | Tax Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
MSCI India | $ | 4,176,715,478 | $ | 1,501,879,300 | $ | (665,287,682 | ) | $ | 836,591,618 | |||||||
MSCI India Small-Cap | 286,681,784 | 53,777,966 | (58,885,338 | ) | (5,107,372 | ) |
8. PRINCIPAL RISKS
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s consolidated schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.
22 | 2 0 2 0 I S h a r e s S e m i - A n 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 Consolidated Financial Statements (unaudited) (continued)
Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its consolidated statement of assets and liabilities.
Concentration Risk A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its consolidated schedule of Investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
9 CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI India | ||||||||||||||||
Shares sold | 7,600,000 | $ | 265,425,741 | 13,250,000 | $ | 463,520,113 | ||||||||||
Shares redeemed | (3,950,000 | ) | (134,086,266 | ) | (4,400,000 | ) | (138,998,583 | ) | ||||||||
Net increase | 3,650,000 | $ | 131,339,475 | 8,850,000 | $ | 324,521,530 | ||||||||||
MSCI India Small-Cap | ||||||||||||||||
Shares sold | 150,000 | $ | 5,403,760 | 2,000,000 | $ | 74,141,311 | ||||||||||
Shares redeemed | (300,000 | ) | (10,905,733 | ) | (300,000 | ) | (12,013,804 | ) | ||||||||
Net increase(decrease) | (150,000 | ) | $ | (5,501,973 | ) | 1,700,000 | $ | 62,127,507 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
N o t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s | 23 |
Notes to Consolidated Financial Statements (unaudited) (continued)
10. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
11. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the consolidated financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the consolidated financial statements.
24 | 2 0 2 0 I S h a r e s S e m i - A n 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 Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares MSCI India ETF and iShares MSCI India Small-Cap ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classificat on. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projectio . |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
S t a t e m e n t R e g a r d i n g L i q u i d i t y R i s k M a n a g e m e n t P r o g r a m | 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 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.
Total Cumulative Distributions | % Breakdown of the Total Cumulative | ||||||||||||||||||||||||||
for the Fiscal Year-to-Date | Distributions for the Fiscal Year-to-Date | ||||||||||||||||||||||||||
Net | Net | ||||||||||||||||||||||||||
Investment | Net Realized | Return of | Total Per | Investment | Net Realized | Return of | Total Per | ||||||||||||||||||||
iShares ETF | Income | Capital Gains | Capital | Share | Income | Capital Gains | Capital | Share | |||||||||||||||||||
MSCI India(a) | $ | 0.026357 | $ | — | $ | 0.006261 | $ | 0.032618 | 81% | —% | 19 | % | 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. Areturn 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. |
26 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and informat on 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.
G e n e r a l I n f o r m a t i o n | 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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES an BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-809-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report
|
iShares Trust | |
● | iShares Currency Hedged MSCI Australia ETF | HAUD | NYSE Arca |
● | iShares Currency Hedged MSCI Canada ETF | HEWC | NYSE Arca |
● | iShares Currency Hedged MSCI Japan ETF | HEWJ | NYSE Arca |
● | iShares Currency Hedged MSCI Mexico ETF | HEWW | NYSE Arca |
● | iShares Currency Hedged MSCI South Korea ETF | HEWY | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Australia ETF |
Investment Objective
The iShares Currency Hedged MSCI Australia ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Australian equities while mitigating exposure to fluctuations between the value of the Australian dollar and the U.S. dollar, as represented by the MSCI Australia 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Australia ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | (1.67 | )% | 8.21 | % | 7.14 | % | 8.21 | % | 38.02 | % | |||||||||||
Fund Market | (1.18 | ) | 9.07 | 7.14 | 9.07 | 38.04 | |||||||||||||||
Index | (0.03 | ) | 10.22 | 7.77 | 10.22 | 41.82 |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||
(09 /01/19) | (02 /29/20) | the Period | (a)(b) | (09 /01/19) | (02 /29/20) | the Period | (a)(b) | Ratio | (a) | |||||||||||||||||
$ | 1,000.00 | $ | 983.30 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.15 | 0.03% |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments(a) | |||
Financials | 36.5 | % | ||
Materials | 15.6 | |||
Health Care | 12.7 | |||
Real Estate | 7.7 | |||
Industrials | 6.5 | |||
Consumer Discretionary | 5.8 | |||
Consumer Staples | 5.7 | |||
Energy | 5.2 | |||
Utilities | 2.0 | |||
Communication Services | 1.6 | |||
Information Technology | 0.7 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments(a) | |||
Commonwealth Bank of Australia | 10.4 | % | ||
CSL Ltd. | 10.1 | |||
BHP Group Ltd. | 7.1 | |||
Westpac Banking Corp. | 6.1 | |||
National Australia Bank Ltd. | 5.2 | |||
Australia & New Zealand Banking Group Ltd. | 5.0 | |||
Woolworths Group Ltd. | 3.5 | |||
Wesfarmers Ltd. | 3.3 | |||
Macquarie Group Ltd. | 3.3 | |||
Transurban Group | 2.9 |
(a) | Excludes money market funds |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Canada ETF |
Investment Objective
The iShares Currency Hedged MSCI Canada ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Canadian equities while mitigating exposure to fluctuations between the value of the Canadian dollar and the U.S. dollar, as represented by the MSCI Canada 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Canada ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | 0.16 | % | 3.99 | % | 5.22 | % | 3.99 | % | 26.83 | % | |||||||||||
Fund Market | 0.35 | 4.03 | 5.21 | 4.03 | 26.75 | ||||||||||||||||
Index | 0.20 | 4.02 | 5.46 | 4.02 | 28.19 |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||
Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Expense Ratio | (a) | |||||||||||||||||
$ | 1,000.00 | $ | 1,001.60 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.15 | 0.03% |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments(a) | |||
Financials | 38.2% | |||
Energy | 18.4 | |||
Materials | 10.0 | |||
Industrials | 9.2 | |||
Information Technology | 7.2 | |||
Consumer Staples | 4.4 | |||
Consumer Discretionary | 3.9 | |||
Utilities | 3.8 | |||
Communication Services | 3.1 | |||
Health Care | 1.0 | |||
Real Estate | 0.8 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments(a) | |||
Royal Bank of Canada | 7.7% | |||
Toronto-Dominion Bank (The) | 6.7 | |||
Enbridge Inc. | 5.4 | |||
Bank of Nova Scotia (The) | 4.6 | |||
Canadian National Railway Co. | 4.4 | |||
Brookfield Asset Management Inc., Class A | 3.8 | |||
TC Energy Corp. | 3.5 | |||
Shopify Inc., Class A | 3.5 | |||
Bank of Montreal | 3.1 | |||
Suncor Energy Inc. | 3.0 |
(a) | Excludes money market funds |
4 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Japan ETF |
Investment Objective
The iShares Currency Hedged MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Japanese equities while mitigating exposure to fluctuations between the value of the Japanese yen and the U.S. dollar, as represented by the MSCI Japan 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Japan ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||||||||||
Since | Since | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||||||||||||||||
Fund NAV | 1.78% | (1.81 | )% | 1.84 | % | 5.86 | % | (1.81 | )% | 9.57 | % | 41.38 | % | ||||||||||||||||
Fund Market | 1.84 | (1.64 | ) | 1.88 | 5.88 | (1.64 | ) | 9.76 | 41.52 | ||||||||||||||||||||
Index | 3.05 | 0.16 | 2.62 | 6.11 | 0.16 | 13.82 | 43.48 |
The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||
Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Expense Ratio | (a) | |||||||||||||||||
$ | 1,000.00 | $ | 1,017.80 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.90 | $ | 0.00 | 0.00% |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments(a) | |||
Industrials | 20.5% | |||
Consumer Discretionary | 18.2 | |||
Information Technology | 11.8 | |||
Financials | 10.7 | |||
Health Care | 10.2 | |||
Communication Services | 9.1 | |||
Consumer Staples | 7.7 | |||
Materials | 5.1 | |||
Real Estate | 4.3 | |||
Utilities | 1.6 | |||
Energy | 0.8 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments(a) | |||
Toyota Motor Corp. | 4.6% | |||
Sony Corp. | 2.4 | |||
SoftBank Group Corp. | 2.2 | |||
Mitsubishi UFJ Financial Group Inc | 1.9 | |||
Keyence Corp. | 1.8 | |||
Takeda Pharmaceutical Co. Ltd. | 1.6 | |||
KDDI Corp. | 1.5 | |||
Recruit Holdings Co. Ltd. | 1.5 | |||
Honda Motor Co. Ltd | 1.3 | |||
Sumitomo Mitsui Financial Group Inc | 1.3 |
(a) | Excludes money market funds |
Fu n d S u m m a r y | 5 |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Mexico ETF |
Investment Objective
The iShares Currency Hedged MSCI Mexico ETF (the “Fund”) seeks to track the investment results of an index composed of large-, mid- and small-capitalization Mexican equities while mitigating exposure to fluctuations between the value of the Mexican peso and the U.S. dollar, as represented by the MSCI Mexico IMI 25/50 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Mexico ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | (2.75 | )% | (4.55 | )% | (3.73 | )% | (4.55 | )% | (16.26 | )% | |||||||||||
Fund Market | (3.07 | ) | (4.34 | ) | (3.83 | ) | (4.34 | ) | (16.69 | ) | |||||||||||
Index | (3.25 | ) | (5.01 | ) | (3.69 | ) | (5.01 | ) | (16.12 | ) |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||
Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Expense Ratio | (a) | |||||||||||||||||
$ | 1,000.00 | $ | 972.50 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.15 | 0.03% |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments(a) | |||
Consumer Staples | 28.1% | |||
Communication Services | 22.0 | |||
Financials | 15.4 | |||
Industrials | 11.9 | |||
Materials | 10.8 | |||
Real Estate | 7.1 | |||
Consumer Discretionary | 2.3 | |||
Utilities | 1.7 | |||
Health Care | 0.7 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments(a) | |||
America Movil SAB de CV, Series L | 17.0% | |||
Fomento Economico Mexicano SAB de CV | 9.7 | |||
Wal-Mart de Mexico SAB de CV | 9.0 | |||
Grupo Financiero Banorte SAB de CV, Class O | 8.6 | |||
Grupo Mexico SAB de CV, Series B | 4.3 | |||
Cemex SAB de CV | 3.4 | |||
Fibra Uno Administracion SA de CV | 3.3 | |||
Grupo Televisa SAB | 3.1 | |||
Grupo Aeroportuario del Pacifico SAB de CV, Series B | 2.8 | |||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 2.4 |
(a) | Excludes money market funds |
6 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI South Korea ETF |
Investment Objective
The iShares Currency Hedged MSCI South Korea ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization South Korean equities while mitigating exposure to fluctuations between the value of the South Korean won and the U.S. dollar, as represented by the MSCI Korea 25/50 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI South Korea ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | 5.54 | % | (3.36 | )% | 4.53 | % | (3.36 | )% | 22.99 | % | |||||||||||
Fund Market | 4.79 | (4.28 | ) | 4.41 | (4.28 | ) | 22.32 | ||||||||||||||
Index | 4.37 | (3.96 | ) | 4.74 | (3.96 | ) | 24.12 |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||
Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Account Value (09/01/19) | Account Value (02/29/20) | Paid During the Period | (a)(b) | Expense Ratio | (a) | |||||||||||||||||
$ | 1,000.00 | $ | 1,055.40 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.90 | $ | 0.00 | 0.00% |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments(a) | |||
Information Technology | 34.8% | |||
Consumer Discretionary | 12.1 | |||
Financials | 11.9 | |||
Industrials | 10.2 | |||
Communication Services | 8.5 | |||
Materials | 7.7 | |||
Consumer Staples | 6.6 | |||
Health Care | 5.3 | |||
Energy | 1.9 | |||
Utilities | 1.0 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments(a) | |||
Samsung Electronics Co. Ltd. | 22.6% | |||
SK Hynix Inc | 6.7 | |||
NAVER Corp. | 3.4 | |||
Hyundai Motor Co. | 2.5 | |||
LG Chem Ltd. | 2.4 | |||
Samsung SDI Co. Ltd. | 2.3 | |||
Celltrion Inc. | 2.2 | |||
KB Financial Group Inc | 2.2 | |||
POSCo | 2.1 | |||
Shinhan Financial Group Co. Ltd. | 2.1 |
(a) | Excludes money market funds |
F u n d S u m m a r y | 7 |
Past performance is no guarantee of future results. 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Australia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 98.8% | ||||||||
iShares MSCI Australia ETF(a) | 124,317 | $ | 2,501,258 | |||||
Total Investment Companies — 98.8% | ||||||||
(Cost: $2,663,353) | 2,501,258 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 1,000 | 1,000 | ||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $1,000) | 1,000 | |||||||
Total Investments in Securities — 98.9% | ||||||||
(Cost: $2,664,353) | 2,502,258 | |||||||
Other Assets, Less Liabilities — 1.1% | 28,655 | |||||||
Net Assets — 100.0% | $ | 2,530,913 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 516,749 | — | (516,749 | )(b) | — | $ | — | $ | 614 | (c) | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | 1,000 | (b) | — | 1,000 | 1,000 | 3 | — | — | |||||||||||||||||||||||
iShares MSCI Australia ETF | 60,489 | 67,939 | (4,111 | ) | 124,317 | 2,501,258 | 27,497 | 595 | (239,535 | ) | ||||||||||||||||||||||
$ | 2,502,258 | $ | 28,114 | $ | 595 | $ | (239,535 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||||||||
Appreciation | ||||||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | ||||||||||||||||
AUD | 4,130,000 | USD | 2,662,818 | MS | 03/03/20 | $ | 27,671 | |||||||||||||
USD | 2,775,410 | AUD | 4,130,000 | MS | 03/03/20 | 84,921 | ||||||||||||||
AUD | 219,000 | USD | 141,793 | MS | 04/02/20 | 976 | ||||||||||||||
USD | 2,716,748 | AUD | 4,130,000 | MS | 04/02/20 | 24,338 | ||||||||||||||
137,906 | ||||||||||||||||||||
AUD | 4,130,000 | USD | 2,715,087 | MS | 03/03/20 | (24,598 | ) | |||||||||||||
USD | 2,662,818 | AUD | 4,130,000 | MS | 03/03/20 | (27,672 | ) | |||||||||||||
(52,270 | ) | |||||||||||||||||||
Net unrealized appreciation | $ | 85,636 |
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) | iShares® Currency Hedged MSCI Australia ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 137,906 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 52,270 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 80,311 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 55,190 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 3,183,386 | ||
Average amounts sold — in USD | $ | 4,972,476 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 137,906 | $ | 52,270 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 137,906 | $ | 52,270 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 137,906 | $ | 52,270 |
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:
Derivative | ||||||||||
Assets | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Assets(b) | |||||||
Morgan Stanley & Co. International PLC | $ | 137,906 | $ | (52,270 | ) | $ | 85,636 | |||
Derivative | ||||||||||
Liabilities | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Liabilities | |||||||
Morgan Stanley & Co. International PLC | $ | 52,270 | $ | (52,270 | ) | $ | — |
10 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Australia ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments Investment Companies | $ | 2,501,258 | $ | — | $ | — | $ | 2,501,258 | ||||||||
Money Market Funds | 1,000 | — | — | 1,000 | ||||||||||||
$ | 2,502,258 | $ | — | $ | — | $ | 2,502,258 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 137,906 | $ | — | $ | 137,906 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (52,270 | ) | — | (52,270 | ) | ||||||||||
$ | — | $ | 85,636 | $ | — | $ | 85,636 |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 11 |
Schedule of Investments (unaudited) February 29, 2020 | iShares® Currency Hedged MSCI Canada ETF |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.3% | ||||||||
iShares MSCI Canada ETF(a)(b) | 1,625,617 | $ | 44,850,773 | |||||
Total Investment Companies — 99.3% | ||||||||
(Cost: $46,048,746) | 44,850,773 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(a)(c)(d) | 1,040,769 | 1,041,497 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(c) | 32,000 | 32,000 | ||||||
1,073,497 | ||||||||
Total Short-Term Investments — 2.4% | ||||||||
(Cost: $1,073,289) | 1,073,497 | |||||||
Total Investments in Securities — 101.7% | ||||||||
(Cost: $47,122,035) | 45,924,270 | |||||||
Other Assets, Less Liabilities — (1.7)% | (747,950 | ) | ||||||
Net Assets — 100.0% | $ | 45,176,320 |
(a) | Affiliate of the Fund. |
(b) | All or a portion of this security is on loan. |
(c) | Annualized 7-day yield as of period-end. |
(d) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 7,183,927 | — | (6,143,158 | )(b) | 1,040,769 | $ | 1,041,497 | $ | 6,198 | (c) | $ | 533 | $ | 221 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 480,000 | — | (448,000 | )(b) | 32,000 | 32,000 | 89 | — | — | |||||||||||||||||||||||
iShares MSCI Canada ETF | 1,354,924 | 398,555 | (127,862 | ) | 1,625,617 | 44,850,773 | 634,741 | 238,455 | (1,563,703 | ) | ||||||||||||||||||||||
$ | 45,924,270 | $ | 641,028 | $ | 238,988 | $ | (1,563,482 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | |||||||||||||
USD | 48,550,160 | CAD | 64,188,000 | MS | 03/03/20 | $ | 728,863 | ||||||||||
CAD | 1,475,000 | USD | 1,098,862 | MS | 04/02/20 | 80 | |||||||||||
USD | 48,103,736 | CAD | 64,188,000 | MS | 04/02/20 | 280,759 | |||||||||||
1,009,702 | |||||||||||||||||
CAD | 64,188,000 | USD | 48,103,289 | MS | 03/03/20 | (281,992 | ) | ||||||||||
CAD | 1,982,000 | USD | 1,478,375 | MS | 04/02/20 | (1,695 | ) | ||||||||||
(283,687 | ) | ||||||||||||||||
Net unrealized appreciation | $ | 726,015 |
12 | 2020 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Canada ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 1,009,702 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 283,687 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 158,359 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 304,750 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 42,743,774 | ||
Average amounts sold — in USD | $ | 84,028,704 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 1,009,702 | $ | 283,687 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 1,009,702 | $ | 283,687 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 1,009,702 | $ | 283,687 |
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:
Derivative | |||||||||||||||
Assets | |||||||||||||||
Subject to | Derivatives | Cash | Net Amount | ||||||||||||
an MNA by | Available | Collateral | of Derivative | ||||||||||||
Counterparty | Counterparty | for Offset | (a) | Received | (b) | Assets | (c)(d) | ||||||||
Morgan Stanley & Co. International PLC | $ | 1,009,702 | $ | (283,687 | ) | $ | (490,000 | ) | $ | 236,015 |
Derivative | |||||||||||||||
Liabilities | |||||||||||||||
Subject to | Derivatives | Cash | Net Amount | ||||||||||||
an MNA by | Available | Collateral | of Derivative | ||||||||||||
Counterparty | Counterparty | for Offset | (a) | Pledged | Liabilities | ||||||||||
Morgan Stanley & Co. International PLC | $ | 283,687 | $ | (283,687 | ) | $ | — | $ | — |
S c h e d u l e o f I n v e s t m e n t s | 13 |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Canada ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(d) | Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 44,850,773 | $ | — | $ | — | $ | 44,850,773 | ||||||||
Money Market Funds | 1,073,497 | — | — | 1,073,497 | ||||||||||||
$ | 45,924,270 | $ | — | $ | — | $ | 45,924,270 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 1,009,702 | $ | — | $ | 1,009,702 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (283,687 | ) | — | (283,687 | ) | ||||||||||
$ | — | $ | 726,015 | $ | — | $ | 726,015 |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements.
14 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) February 29, 2020 | iShares® Currency Hedged MSCI Japan ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 102.0% | ||||||||
iShares MSCI Japan ETF(a) | 5,956,293 | $ | 315,445,277 | |||||
Total Investment Companies — 102.0% | ||||||||
(Cost: $358,603,043) | 315,445,277 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.3% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 882,000 | 882,000 | ||||||
Total Short-Term Investments — 0.3% | ||||||||
(Cost: $882,000) | 882,000 | |||||||
Total Investments in Securities — 102.3% | ||||||||
(Cost: $359,485,043) | 316,327,277 | |||||||
Other Assets, Less Liabilities — (2.3)% | (7,176,278 | ) | ||||||
Net Assets — 100.0% | $ | 309,150,999 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | 882,000 | (b) | — | 882,000 | $ | 882,000 | $ | 2,725 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Japan ETF | 6,100,458 | 4,571,728 | (4,715,893 | ) | 5,956,293 | 315,445,277 | 4,885,011 | (2,051,984 | ) | (5,885,962 | ) | |||||||||||||||||||||
$ | 316,327,277 | $ | 4,887,736 | $ | (2,051,984 | ) | $ | (5,885,962 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Forward Foreign Currency Exchange Contracts
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | |||||||||||||
JPY | 550,641,000 | USD | 5,022,557 | ANZ | 03/03/20 | $ | 82,589 | ||||||||||
JPY | 69,389,000 | USD | 641,173 | BNP | 03/03/20 | 2,151 | |||||||||||
JPY | 184,520,000 | USD | 1,677,757 | CITI | 03/03/20 | 32,979 | |||||||||||
JPY | 3,823,113,000 | USD | 35,230,460 | HSBC | 03/03/20 | 214,682 | |||||||||||
JPY | 10,118,899,300 | USD | 92,785,138 | MS | 03/03/20 | 1,029,986 | |||||||||||
JPY | 33,643,462,400 | USD | 306,217,119 | NAB | 03/03/20 | 5,700,760 | |||||||||||
JPY | 3,666,567,000 | USD | 33,341,633 | SSB | 03/03/20 | 652,127 | |||||||||||
JPY | 1,922,558,000 | USD | 17,853,983 | BOA | 04/02/20 | 179 | |||||||||||
JPY | 1,465,956,000 | USD | 13,579,993 | HSBC | 04/02/20 | 33,857 | |||||||||||
JPY | 37,318,000 | USD | 340,496 | MS | 04/02/20 | 6,064 | |||||||||||
7,755,374 | |||||||||||||||||
USD | 1,650,207 | JPY | 180,994,000 | BNP | 03/03/20 | (27,839 | ) | ||||||||||
USD | 82,406 | JPY | 9,030,000 | BOA | 03/03/20 | (1,313 | ) | ||||||||||
USD | 175,724 | JPY | 19,650,000 | BSCH | 03/03/20 | (6,456 | ) | ||||||||||
USD | 45,042 | JPY | 4,941,000 | CBA | 03/03/20 | (767 | ) |
S c h e d u l e o f I n v e s t m e n t s | 15 |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Japan ETF |
Forward Foreign Currency Exchange Contracts (continued)
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | |||||||||||||
USD | 11,363,784 | JPY | 1,273,457,000 | CITI | 03/03/20 | $ | (442,789 | ) | |||||||||
USD | 339,669,158 | JPY | 36,960,848,300 | HSBC | 03/03/20 | (3,005,127 | ) | ||||||||||
USD | 76,850,946 | JPY | 8,318,629,400 | MS | 03/03/20 | (273,376 | ) | ||||||||||
USD | 64,409 | JPY | 7,037,000 | NAB | 03/03/20 | (832 | ) | ||||||||||
USD | 47,708,970 | JPY | 5,268,822,000 | SSB | 03/03/20 | (1,139,742 | ) | ||||||||||
USD | 120,197 | JPY | 13,183,000 | TDB | 03/03/20 | (2,027 | ) | ||||||||||
JPY | 1,478,714,000 | USD | 13,746,400 | UBS | 04/02/20 | (14,071 | ) | ||||||||||
USD | 54,111,529 | JPY | 5,937,081,600 | MS | 04/02/20 | (1,024,190 | ) | ||||||||||
USD | 306,717,390 | JPY | 33,643,462,400 | NAB | 04/02/20 | (5,718,355 | ) | ||||||||||
(11,656,884 | ) | ||||||||||||||||
Net unrealized depreciation | $ | (3,901,510 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 7,755,374 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 11,656,884 |
Forward foreign currency exchange contracts Foreign Currency Exchange Contracts
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 4,577,371 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 3,337,710 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 451,843,338 | ||
Average amounts sold — in USD | $ | 791,937,292 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
16 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Japan ETF |
Derivative Financial Instruments - Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 7,755,374 | $ | 11,656,884 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 7,755,374 | $ | 11,656,884 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 7,755,374 | $ | 11,656,884 |
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:
Derivative | ||||||||||||||||
Assets | ||||||||||||||||
Subject to | Derivatives | Cash | Net Amount | |||||||||||||
an MNA by | Available | Collateral | of Derivative | |||||||||||||
Counterparty | Counterparty | for Offset | (a) | Received | Assets | (b)(c) | ||||||||||
Australia and New Zealand Bank Group | $ | 82,589 | $ | — | $ | — | $ | 82,589 | ||||||||
Bank of America N.A | 179 | (179 | ) | — | — | |||||||||||
BNP Paribas SA | 2,151 | (2,151 | ) | — | — | |||||||||||
Citibank N.A. | 32,979 | (32,979 | ) | — | — | |||||||||||
HSBC Bank PLC | 248,539 | (248,539 | ) | — | — | |||||||||||
Morgan Stanley & Co. International PLC | 1,036,050 | (1,036,050 | ) | — | — | |||||||||||
National Australia Bank Limited | 5,700,760 | (5,700,760 | ) | — | — | |||||||||||
State Street Bank and Trust Co. | 652,127 | (652,127 | ) | — | — | |||||||||||
$ | 7,755,374 | $ | (7,672,785 | ) | $ | — | $ | 82,589 |
Derivative | ||||||||||||||||
Liabilities | ||||||||||||||||
Subject to | Derivatives | Cash | Net Amount | |||||||||||||
an MNA by | Available | Collateral | of Derivative | |||||||||||||
Counterparty | Counterparty | for Offset | (a) | Pledged | (d) | Liabilities | (c)(e) | |||||||||
Banco Santander Central Hispano | $ | 6,456 | $ | — | $ | — | $ | 6,456 | ||||||||
Bank of America N.A. | 1,313 | (179 | ) | — | 1,134 | |||||||||||
BNP Paribas SA | 27,839 | (2,151 | ) | — | 25,688 | |||||||||||
Citibank N.A. | 442,789 | (32,979 | ) | — | 409,810 | |||||||||||
Commonwealth Bank of Australia | 767 | — | — | 767 | ||||||||||||
HSBC Bank PLC | 3,005,127 | (248,539 | ) | — | 2,756,588 | |||||||||||
Morgan Stanley & Co. International PLC | 1,297,566 | (1,036,050 | ) | (261,516 | ) | — | ||||||||||
National Australia Bank Limited | 5,719,187 | (5,700,760 | ) | — | 18,427 | |||||||||||
State Street Bank and Trust Co. | 1,139,742 | (652,127 | ) | — | 487,615 | |||||||||||
Toronto Dominion Bank | 2,027 | — | — | 2,027 | ||||||||||||
UBS AG | 14,071 | — | — | 14,071 | ||||||||||||
$ | 11,656,884 | $ | (7,672,785 | ) | $ | (261,516 | ) | $ | 3,722,583 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(c) | Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
(d) | Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes. |
(e) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
S c h e d u l e o f I n v e s t m e n t s | 17 |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Japan ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 315,445,277 | $ | — | $ | — | $ | 315,445,277 | ||||||||
Money Market Funds | 882,000 | — | — | 882,000 | ||||||||||||
$ | 316,327,277 | $ | — | $ | — | $ | 316,327,277 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 7,755,374 | $ | — | $ | 7,755,374 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (11,656,884 | ) | — | (11,656,884 | ) | ||||||||||
$ | — | $ | (3,901,510 | ) | $ | — | $ | (3,901,510 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements.
18 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) February 29, 2020 | iShares® Currency Hedged MSCI Mexico ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 98.1% | ||||||||
iShares MSCI Mexico ETF(a)(b) | 18,186 | $ | 756,902 | |||||
Total Investment Companies — 98.1% | ||||||||
(Cost: $827,506) | 756,902 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 41.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(a)(c)(d) | 318,956 | 319,179 | ||||||
Total Short-Term Investments — 41.4% | ||||||||
(Cost: $319,147) | 319,179 | |||||||
Total Investments in Securities — 139.5% | ||||||||
(Cost: $1,146,653) | 1,076,081 | |||||||
Other Assets, Less Liabilities — (39.5)% | (304,547 | ) | ||||||
Net Assets — 100.0% | $ | 771,534 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 361,871 | — | (42,915 | )(b) | 318,956 | $ | 319,179 | $ | 2,024 | (c) | $ | (34 | ) | $ | 68 | |||||||||||||||||
iShares MSCI Mexico ETF | 19,457 | 1,014 | (2,285 | ) | 18,186 | 756,902 | 8,103 | (10,127 | ) | 17,242 | ||||||||||||||||||||||
$ | 1,076,081 | $ | 10,127 | $ | (10,161 | ) | $ | 17,310 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | |||||||||||||||||
Appreciation | |||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | |||||||||||||
MXN | 15,679,000 | USD | 792,009 | MS | 03/03/20 | $ | 4,567 | ||||||||||
USD | 831,607 | MXN | 15,679,000 | MS | 03/03/20 | 35,031 | |||||||||||
MXN | 640,000 | USD | 32,226 | MS | 04/02/20 | 136 | |||||||||||
USD | 802,360 | MXN | 15,614,000 | MS | 04/02/20 | 12,839 | |||||||||||
52,573 | |||||||||||||||||
MXN | 15,679,000 | USD | 809,510 | MS | 03/03/20 | (12,934 | ) | ||||||||||
USD | 792,009 | MXN | 15,679,000 | MS | 03/03/20 | (4,567 | ) | ||||||||||
(17,501 | ) | ||||||||||||||||
Net unrealized appreciation | $ | 35,072 |
S c h e d u l e o f I n v e s t m e n t s | 19 |
Schedule of Investments (unaudited) (continued) February 29, 2020 | iShares® Currency Hedged MSCI Mexico ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 52,573 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 17,501 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | (39,432 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 905 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 1,347,059 | ||
Average amounts sold — in USD | $ | 2,164,721 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 52,573 | $ | 17,501 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 52,573 | $ | 17,501 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 52,573 | $ | 17,501 |
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:
Derivative | |||||||||||
Assets | |||||||||||
Subject to | Derivatives | Net Amount | |||||||||
an MNA by | Available | of Derivative | |||||||||
Counterparty | Counterparty | for Offset(a) | Assets(b) | ||||||||
Morgan Stanley & Co. International PLC | $ | 52,573 | $ | (17,501 | ) | $ | 35,072 |
Derivative | |||||||||||
Liabilities | |||||||||||
Subject to | Derivatives | Net Amount | |||||||||
an MNA by | Available | of Derivative | |||||||||
Counterparty | Counterparty | for Offset | (a) | Liabilities | |||||||
Morgan Stanley & Co. International PLC | $ | 17,501 | $ | (17,501 | ) | $ | — |
20 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Mexico ETF |
February 29, 2020 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 756,902 | $ | — | $ | — | $ | 756,902 | ||||||||
Money Market Funds | 319,179 | — | — | 319,179 | ||||||||||||
$ | 1,076,081 | $ | — | $ | — | $ | 1,076,081 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts. | $ | — | $ | 52,573 | $ | — | $ | 52,573 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (17,501 | ) | — | (17,501 | ) | ||||||||||
$ | — | $ | 35,072 | $ | — | $ | 35,072 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 21 |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI South Korea ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 100.7% | ||||||||
iShares MSCI South Korea ETF(a) | 36,529 | $ | 2,007,634 | |||||
Total Investment Companies — 100.7% | ||||||||
(Cost: $2,437,265) | 2,007,634 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.6% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 31,000 | 31,000 | ||||||
Total Short-Term Investments — 1.6% | ||||||||
(Cost: $31,000) | 31,000 | |||||||
Total Investments in Securities — 102.3% | ||||||||
(Cost: $2,468,265) | 2,038,634 | |||||||
Other Assets, Less Liabilities — (2.3)% | (45,628 | ) | ||||||
Net Assets — 100.0% | $ | 1,993,006 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 0 | (b) | — | — | $ | — | $ | 55 | (c) | $ | (116 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 33,000 | — | (2,000 | )(b) | 31,000 | 31,000 | 267 | — | — | |||||||||||||||||||||||
iShares MSCI South Korea ETF | 45,214 | 2,840 | (11,525 | ) | 36,529 | 2,007,634 | 45,907 | (115,259 | ) | 221,162 | ||||||||||||||||||||||
$ | 2,038,634 | $ | 46,229 | $ | (115,375 | ) | $ | 221,162 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | |||||||||||||||
Appreciation | |||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | |||||||||||
KRW | 2,563,851,000 | USD | 2,109,645 | MS | 03/03/20 | $ | 1,390 | ||||||||
USD | 2,152,900 | KRW | 2,563,851,000 | MS | 03/03/20 | 41,866 | |||||||||
KRW | 107,933,000 | USD | 89,457 | MS | 04/02/20 | 413 | |||||||||
43,669 | |||||||||||||||
KRW | 2,563,851,000 | USD | 2,117,581 | MS | 03/03/20 | (6,547 | ) | ||||||||
USD | 2,109,645 | KRW | 2,563,851,000 | MS | 03/03/20 | (1,390 | ) | ||||||||
USD | 2,095,615 | KRW | 2,536,951,000 | MS | 04/02/20 | (16,751 | ) | ||||||||
(24,688 | ) | ||||||||||||||
Net unrealized appreciation | $ | 18,981 |
22 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI South Korea ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 43,669 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 24,688 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts. | $ | 61,294 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts. | $ | (73,031 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD. | $ | 4,398,746 | ||
Average amounts sold — in USD | $ | 6,791,123 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 43,669 | $ | 24,688 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 43,669 | $ | 24,688 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 43,669 | $ | 24,688 |
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:
Derivative | ||||||||||||||
Assets | ||||||||||||||
Subject to | Derivatives | Cash | Net Amount | |||||||||||
an MNA by | Available | Collateral | of Derivative | |||||||||||
Counterparty | Counterparty | for Offset(a) | Received(b) | Assets | ||||||||||
Morgan Stanley & Co. International PLC. | $ | 43,669 | $ | (24,688 | ) | $ | (18,981 | ) | $ | — |
Derivative | ||||||||||||||
Liabilities | ||||||||||||||
Subject to | Derivatives | Cash | Net Amount | |||||||||||
an MNA by | Available | Collateral | of Derivative | |||||||||||
Counterparty | Counterparty | for Offset(a) | Pledged | Liabilities | ||||||||||
Morgan Stanley & Co. International PLC. | $ | 24,688 | $ | (24,688 | ) | $ | — | $ | — |
S c h e d u l e o f I n v e s t m e n t s | 23 |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI South Korea ETF |
February 29, 2020 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received from the individual counterparty is not shown for financial reporting purposes. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 2,007,634 | $ | — | $ | — | $ | 2,007,634 | ||||||||
Money Market Funds | 31,000 | — | — | 31,000 | ||||||||||||
$ | 2,038,634 | $ | — | $ | — | $ | 2,038,634 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts. | $ | — | $ | 43,669 | $ | — | $ | 43,669 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (24,688 | ) | — | (24,688 | ) | ||||||||||
$ | — | $ | 18,981 | $ | — | $ | 18,981 |
(a) Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements. |
24 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares | iShares | iShares | iShares | |||||||||||||
Currency | Currency | Currency | Currency | |||||||||||||
Hedged | Hedged | Hedged | Hedged | |||||||||||||
MSCI | MSCI | MSCI Japan | MSCI Mexico | |||||||||||||
Australia ETF | Canada ETF | ETF | ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||||||||||
Affiliated(b) | $ | 2,502,258 | $ | 45,924,270 | $ | 316,327,277 | $ | 1,076,081 | ||||||||
Cash | 148 | 480,175 | 674 | 434 | ||||||||||||
Receivables: | ||||||||||||||||
Securities lending income — Affiliated | 185 | 2,142 | — | 257 | ||||||||||||
Capital shares sold | — | — | 339,125 | — | ||||||||||||
Dividends | — | 466 | 757 | — | ||||||||||||
Unrealized appreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 137,906 | 1,009,702 | 7,755,374 | 52,573 | ||||||||||||
Total assets | 2,640,497 | 47,416,755 | 324,423,207 | 1,129,345 | ||||||||||||
LIABILITIES | ||||||||||||||||
Cash received: | ||||||||||||||||
Collateral — forward foreign currency exchange contracts | — | 490,000 | 700,000 | — | ||||||||||||
Collateral on securities loaned, at value | — | 1,040,750 | — | 319,146 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 57,248 | 424,842 | 2,727,357 | 21,144 | ||||||||||||
Capital shares redeemed | — | — | 186,519 | — | ||||||||||||
Investment advisory fees | 66 | 1,156 | 1,448 | 20 | ||||||||||||
Unrealized depreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 52,270 | 283,687 | 11,656,884 | 17,501 | ||||||||||||
Total liabilities | 109,584 | 2,240,435 | 15,272,208 | 357,811 | ||||||||||||
NET ASSETS | $ | 2,530,913 | $ | 45,176,320 | $ | 309,150,999 | $ | 771,534 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 3,039,166 | $ | 45,553,367 | $ | 417,554,764 | $ | 1,330,886 | ||||||||
Accumulated loss | (508,253 | ) | (377,047 | ) | (108,403,765 | ) | (559,352 | ) | ||||||||
NET ASSETS | $ | 2,530,913 | $ | 45,176,320 | $ | 309,150,999 | $ | 771,534 | ||||||||
Shares outstanding | 100,000 | 1,750,000 | 10,550,000 | 50,000 | ||||||||||||
Net asset value | $ | 25.31 | $ | 25.82 | $ | 29.30 | $ | 15.43 | ||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value | None | None | None | None | ||||||||||||
(a) Securities loaned, at value | $ | — | $ | 998,758 | $ | — | $ | 308,904 | ||||||||
(b) Investments, at cost — Affiliated | $ | 2,664,353 | $ | 47,122,035 | $ | 359,485,043 | $ | 1,146,653 |
See notes to financial statements.
F i n a n c i a l s t a t e m e n t s | 25 |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares | ||||
Currency | ||||
Hedged | ||||
MSCI South | ||||
Korea ETF | ||||
ASSETS | ||||
Investments in securities, at value: | ||||
Affiliated(a) | $ | 2,038,634 | ||
Cash | 24 | |||
Receivables: | ||||
Securities lending income — Affiliated | 8 | |||
Dividends | 40 | |||
Unrealized appreciation on: | ||||
Forward foreign currency exchange contracts. | 43,669 | |||
Total assets | 2,082,375 | |||
LIABILITIES | ||||
Cash received: | ||||
Collateral — forward foreign currency exchange contracts. | 30,000 | |||
Payables: | ||||
Investments purchased | 34,681 | |||
Unrealized depreciation on: | ||||
Forward foreign currency exchange contracts. | 24,688 | |||
Total liabilities | 89,369 | |||
NET ASSETS | $ | 1,993,006 | ||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 2,560,159 | ||
Accumulated loss | (567,153 | ) | ||
NET ASSETS | $ | 1,993,006 | ||
Shares outstanding | 100,000 | |||
Net asset value | $ | 19.93 | ||
Shares authorized | Unlimited | |||
Par value | None | |||
(a) Investments, at cost — Affiliated | $ | 2,468,265 | ||
See notes to financial statements. |
26 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | iShares | |||||||||||||||
Currency | iShares | iShares | Currency | |||||||||||||
Hedged | Currency | Currency | Hedged | |||||||||||||
MSCI | Hedged | Hedged | MSCI | |||||||||||||
Australia | MSCI | MSCI Japan | Mexico | |||||||||||||
ETF | Canada ETF | ETF | ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Affiliated | $ | 27,500 | $ | 634,830 | $ | 4,887,736 | $ | 8,103 | ||||||||
Securities lending income — Affiliated — net | 614 | 6,198 | — | 2,024 | ||||||||||||
Total investment income | 28,114 | 641,028 | 4,887,736 | 10,127 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 5,433 | 132,048 | 937,881 | 2,523 | ||||||||||||
Total expenses | 5,433 | 132,048 | 937,881 | 2,523 | ||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | (5,170 | ) | (125,657 | ) | (931,592 | ) | (2,400 | ) | ||||||||
Total expenses after fees waived | 263 | 6,391 | 6,289 | 123 | ||||||||||||
Net investment income | 27,851 | 634,637 | 4,881,447 | 10,004 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Affiliated | 595 | 8,708 | (171,908 | ) | (10,161 | ) | ||||||||||
In-kind redemptions — Affiliated | — | 230,280 | (1,880,076 | ) | — | |||||||||||
Forward foreign currency exchange contracts | 80,311 | 158,359 | 4,577,371 | (39,432 | ) | |||||||||||
Net realized gain (loss) | 80,906 | 397,347 | 2,525,387 | (49,593 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Affiliated | (239,535 | ) | (1,563,482 | ) | (5,885,962 | ) | 17,310 | |||||||||
Forward foreign currency exchange contracts | 55,190 | 304,750 | 3,337,710 | 905 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (184,345 | ) | (1,258,732 | ) | (2,548,252 | ) | 18,215 | |||||||||
Net realized and unrealized loss | (103,439 | ) | (861,385 | ) | (22,865 | ) | (31,378 | ) | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (75,588 | ) | $ | (226,748 | ) | $ | 4,858,582 | $ | (21,374 | ) |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 27 |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares | ||||
Currency | ||||
Hedged | ||||
MSCI | ||||
South | ||||
Korea ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 46,174 | ||
Securities lending income — Affiliated — net. | 55 | |||
Total investment income | 46,229 | |||
EXPENSES | ||||
Investment advisory fees | 9,063 | |||
Total expenses | 9,063 | |||
Less: | ||||
Investment advisory fees waived | (9,063 | ) | ||
Total expenses after fees waived | — | |||
Net investment income | 46,229 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Affiliated | (115,375 | ) | ||
Forward foreign currency exchange contracts | 61,294 | |||
Net realized loss | (54,081 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Affiliated | 221,162 | |||
Forward foreign currency exchange contracts | (73,031 | ) | ||
Net change in unrealized appreciation (depreciation) | 148,131 | |||
Net realized and unrealized gain | 94,050 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 140,279 |
See notes to financial statements.
28 | 2 0 2 0 i S h a r e s S e m i - A n 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 Currency Hedged MSCI Australia ETF | iShares Currency Hedged MSCI Canada ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income. | $ | 27,851 | $ | 67,798 | $ | 634,637 | 795,267 | |||||||||
Net realized gain | 80,906 | 86,345 | 397,347 | 512,750 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (184,345 | ) | (35,340 | ) | (1,258,732 | ) | 720,515 | |||||||||
Net increase (decrease) in net assets resulting from operations | (75,588 | ) | 118,803 | (226,748 | ) | 2,028,532 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (28,053 | ) | (67,624 | ) | (1,022,741 | ) | (1,551,758 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 1,321,172 | — | 8,136,184 | 32,455,361 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 1,217,531 | 51,179 | 6,886,695 | 32,932,135 | ||||||||||||
Beginning of period | 1,313,382 | 1,262,203 | 38,289,625 | 5,357,490 | ||||||||||||
End of period | $ | 2,530,913 | $ | 1,313,382 | $ | 45,176,320 | $ | 38,289,625 |
(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 | 29 |
Statements of Changes in Net Assets (continued)
iShares Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI MexiCo ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | Year | ||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 4,881,447 | $ | 10,254,418 | $ | 10,004 | $ | 27,218 | ||||||||
Net realized gain (loss) | 2,525,387 | (11,275,497 | ) | (49,593 | ) | 115 | ||||||||||
Net change in unrealized appreciation (depreciation) | (2,548,252 | ) | (80,881,818 | ) | 18,215 | (124,873 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 4,858,582 | (81,902,897 | ) | (21,374 | ) | (97,540 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (4,438,282 | ) | (10,252,183 | ) | (11,031 | ) | (26,532 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | (20,407,449 | ) | (583,540,993 | ) | — | (44,352 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total decrease in net assets | (19,987,149 | ) | (675,696,073 | ) | (32,405 | ) | (168,424 | ) | ||||||||
Beginning of period | 329,138,148 | 1,004,834,221 | 803,939 | 972,363 | ||||||||||||
End of period | $ | 309,150,999 | $ | 329,138,148 | $ | 771,534 | $ | 803,939 |
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
See notes to financial statements.
30 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares | ||||||||
Currency Hedged MSCI South | ||||||||
Korea ETF | ||||||||
Six Months | ||||||||
Ended | ||||||||
02/29/20 | Year Ended | |||||||
(unaudited) | 08/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 46,229 | $ | 299,366 | ||||
Net realized loss | (54,081 | ) | (1,275,302 | ) | ||||
Net change in unrealized appreciation (depreciation) | 148,131 | (752,661 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 140,279 | (1,728,597 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (551,573 | ) | (1,247,093 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | — | 3,941,137 | ||||||
NET ASSETS | ||||||||
Total increase (decrease) in net assets | (411,294 | ) | 965,447 | |||||
Beginning of period | 2,404,300 | 1,438,853 | ||||||
End of period | $ | 1,993,006 | $ | 2,404,300 |
(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 | 31 |
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Australia ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15 | (a) | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.27 | $ | 25.24 | $ | 23.06 | $ | 22.02 | $ | 23.52 | $ | 24.48 | ||||||||||||
Net investment income (loss)(b) | 0.43 | 1.36 | 1.05 | 0.75 | 0.72 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.83 | ) | 1.02 | 2.18 | 1.40 | 0.49 | (0.96 | ) | ||||||||||||||||
Net increase (decrease) from investment operations | (0.40 | ) | 2.38 | 3.23 | 2.15 | 1.21 | (0.96 | ) | ||||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.56 | ) | (1.35 | ) | (1.05 | ) | (1.11 | ) | (0.90 | ) | — | |||||||||||||
In excess of net investment income | — | — | — | — | (1.81 | ) | — | |||||||||||||||||
Total distributions | (0.56 | ) | (1.35 | ) | (1.05 | ) | (1.11 | ) | (2.71 | ) | — | |||||||||||||
Net asset value, end of period | $ | 25.31 | $ | 26.27 | $ | 25.24 | $ | 23.06 | $ | 22.02 | $ | 23.52 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.67 | )%(f) | 10.12 | % | 14.25 | % | 9.86 | % | 5.70 | % | (3.92 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.03 | %(h) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(h) | ||||||||||||
Net investment income (loss) | 3.18 | %(h) | 5.53 | % | 4.38 | % | 3.31 | % | 3.33 | % | (0.04 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,531 | $ | 1,313 | $ | 1,262 | $ | 1,153 | $ | 9,910 | $ | 2,352 | ||||||||||||
Portfolio turnover rate(i)(j) | 5 | %(f) | 11 | % | 12 | % | 13 | % | 15 | % | 0 | %(f)(k) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
(k) | Rounds to less than 1%. |
See notes to financial statements.
32 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Canada ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15 | (a) | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.41 | $ | 26.79 | $ | 24.70 | $ | 23.54 | $ | 23.47 | $ | 24.36 | ||||||||||||
Net investment income (loss)(b) | 0.40 | 0.59 | 0.56 | 0.24 | 0.41 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.33 | ) | 0.30 | 2.10 | 1.38 | 1.07 | (0.89 | ) | ||||||||||||||||
Net increase (decrease) from investment operations | 0.07 | 0.89 | 2.66 | 1.62 | 1.48 | (0.89 | ) | |||||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.29 | ) | (0.64 | ) | (0.57 | ) | (0.46 | ) | (0.46 | ) | — | |||||||||||||
From net realized gain | (0.37 | ) | (0.63 | ) | — | — | (0.95 | ) | — | |||||||||||||||
Return of capital | — | — | — | — | (0.00 | )(c) | ||||||||||||||||||
Total distributions | (0.66 | ) | (1.27 | ) | (0.57 | ) | (0.46 | ) | (1.41 | ) | — | |||||||||||||
Net asset value, end of period | $ | 25.82 | $ | 26.41 | $ | 26.79 | $ | 24.70 | $ | 23.54 | $ | 23.47 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.16 | %(f) | 3.84 | % | 10.82 | % | 6.86 | % | 6.92 | % | (3.69 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.03 | %(h) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.05 | %(h) | ||||||||||||
Net investment income (loss) | 2.98 | %(h) | 2.31 | % | 2.12 | % | 0.98 | % | 1.84 | % | (0.05 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 45,176 | $ | 38,290 | $ | 5,357 | $ | 2,470 | $ | 10,593 | $ | 2,347 | ||||||||||||
Portfolio turnover rate(i)(j) | 5 | %(f) | 12 | % | 10 | % | 8 | % | 13 | % | 0 | %(f) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
F i n a n c i a l H i g h l i g h t s | 33 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Japan ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.13 | $ | 32.36 | $ | 29.56 | $ | 24.73 | $ | 29.46 | $ | 25.02 | ||||||||||||
Net investment income(a) | 0.45 | 0.45 | 0.46 | 0.52 | 0.41 | 0.43 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.11 | (3.04 | ) | 2.81 | 4.78 | (4.11 | ) | 4.58 | ||||||||||||||||
Net increase (decrease) from investment operations | 0.56 | (2.59 | ) | 3.27 | 5.30 | (3.70 | ) | 5.01 | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.39 | ) | (0.64 | ) | (0.47 | ) | (0.47 | ) | (0.44 | ) | (0.32 | ) | ||||||||||||
From net realized gain | — | — | — | — | (0.59 | ) | (0.25 | ) | ||||||||||||||||
Total distributions | (0.39 | ) | (0.64 | ) | (0.47 | ) | (0.47 | ) | (1.03 | ) | (0.57 | ) | ||||||||||||
Net asset value, end of period | $ | 29.30 | $ | 29.13 | $ | 32.36 | $ | 29.56 | $ | 24.73 | $ | 29.46 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 1.78 | %(d) | (8.06 | )% | 11.07 | % | 21.50 | % | (12.91 | )% | 20.08 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(e) | 0.53 | %(f) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
Total expenses after fees waived(e) | 0.00 | %(f)(g) | 0.00 | %(g) | 0.01 | % | 0.00 | %(g) | 0.00 | %(g) | 0.01 | % | ||||||||||||
Net investment income | 2.76 | %(f) | 1.47 | % | 1.41 | % | 1.84 | % | 1.57 | % | 1.39 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 309,151 | $ | 329,138 | $ | 1,004,834 | $ | 1,198,726 | $ | 476,015 | $ | 735,081 | ||||||||||||
Portfolio turnover rate(h)(i) | 2 | %(d) | 9 | % | 9 | % | 11 | % | 11 | % | 12 | % |
(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) | Not annualized. |
(e) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(f) | Annualized. |
(g) | Rounds to less than 0.01%. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
34 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Mexico ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15 | (a) | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.08 | $ | 19.45 | $ | 21.52 | $ | 23.54 | $ | 24.03 | $ | 24.43 | ||||||||||||
Net investment income (loss)(b) | 0.20 | 0.51 | 0.41 | 0.43 | 0.49 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.63 | ) | (3.43 | ) | (1.95 | ) | 0.09 | 1.15 | (0.40 | ) | ||||||||||||||
Net increase (decrease) from investment operations | (0.43 | ) | (2.92 | ) | (1.54 | ) | 0.52 | 1.64 | (0.40 | ) | ||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.22 | ) | (0.45 | ) | (0.53 | ) | (0.33 | ) | (0.71 | ) | — | |||||||||||||
In excess of net investment income | — | — | — | (2.21 | ) | (1.42 | ) | — | ||||||||||||||||
Total distributions | (0.22 | ) | (0.45 | ) | (0.53 | ) | (2.54 | ) | (2.13 | ) | — | |||||||||||||
Net asset value, end of period | $ | 15.43 | $ | 16.08 | $ | 19.45 | $ | 21.52 | $ | 23.54 | $ | 24.03 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.75 | )%(f) | (15.02 | )% | (7.10 | )% | 3.24 | % | 7.41 | % | (1.64 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.03 | %(h) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(h) | ||||||||||||
Net investment income (loss) | 2.46 | %(h) | 3.01 | % | 2.05 | % | 2.03 | % | 2.11 | % | (0.04 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 772 | $ | 804 | $ | 972 | $ | 3,228 | $ | 1,177 | $ | 2,403 | ||||||||||||
Portfolio turnover rate(i)(j) | 5 | %(f) | 18 | % | 23 | % | 12 | % | 22 | % | 0 | %(f)(k) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
(k) | Rounds to less than 1%. |
See notes to financial statements.
F i n a n c i a l H i g h l i g h t s | 35 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI South Korea ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15 | (a) | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.04 | $ | 28.78 | $ | 29.31 | $ | 24.71 | $ | 22.70 | $ | 24.64 | ||||||||||||
Net investment income (loss)(b) | 0.46 | 0.43 | 0.89 | 0.51 | 2.12 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | 0.95 | (3.75 | ) | (0.53 | ) | 5.29 | 0.92 | (1.94 | ) | |||||||||||||||
Net increase (decrease) from investment operations | 1.41 | (3.32 | ) | 0.36 | 5.80 | 3.04 | (1.94 | ) | ||||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.47 | ) | (0.37 | ) | (0.89 | ) | (0.35 | ) | (0.55 | ) | — | |||||||||||||
From net realized gain | (5.05 | ) | (1.05 | ) | — | (0.85 | ) | (0.48 | ) | — | ||||||||||||||
Total distributions | (5.52 | ) | (1.42 | ) | (0.89 | ) | (1.20 | ) | (1.03 | ) | — | |||||||||||||
Net asset value, end of period | $ | 19.93 | $ | 24.04 | $ | 28.78 | $ | 29.31 | $ | 24.71 | $ | 22.70 | ||||||||||||
�� | ||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 5.54 | %(f) | (11.65 | )% | 1.09 | % | 24.59 | % | 13.67 | % | (7.87 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.77 | %(h) | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.00 | %(h) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.02 | %(h) | ||||||||||||
Net investment income (loss) | 3.93 | %(h) | 1.65 | % | 2.96 | % | 2.01 | % | 9.13 | % | (0.02 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,993 | $ | 2,404 | $ | 1,439 | $ | 1,465 | $ | 12,353 | $ | 2,270 | ||||||||||||
Portfolio turnover rate(i)(j) | 7 | %(f) | 17 | % | 11 | % | 25 | % | 21 | % | 2 | %(f) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
36 | 2 0 2 0 i S h a r e s S e m i - A n 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”):
Diversification | |
iShares ETF | Classification |
Currency Hedged MSCI Australia | Diversified |
Currency Hedged MSCI Canada | Diversified |
Currency Hedged MSCI Japan | Diversified |
Currency Hedged MSCI MexiCo | Diversified |
Currency Hedged MSCI South Korea | Diversified |
Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds should be read in conjunction with the Funds' financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions from the underlying funds, if any, are recognized on the ex-dividend date. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, each Fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds' maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
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Notes to Financial Statements (unaudited) (continued)
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or
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Notes to Financial Statements (unaudited) (continued)
insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
Market Value of | Cash Collateral | Non-Cash Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received(a) | Received | Net Amount | ||||||||||||
Currency Hedged MSCI Canada | ||||||||||||||||
TD Prime Services LLC | $ | 998,758 | $ | 998,758 | $ | — | $ | — | ||||||||
Currency Hedged MSCI MexiCo | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 225,664 | $ | 225,664 | $ | — | $ | — | ||||||||
Jefferies LLC | 83,240 | 83,240 | — | — | ||||||||||||
$ | 308,904 | $ | 308,904 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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
Forward Foreign Currency Exchange Contracts: Each Fund uses forward foreign currency exchange contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts ("NDFs") are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the fund.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds' investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.
6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
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Notes to Financial Statements (unaudited) (continued)
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
Currency Hedged MSCI Australia | 0.62 | % | ||
Currency Hedged MSCI Canada | 0.62 | |||
Currency Hedged MSCI Japan | 0.53 | |||
Currency Hedged MSCI MexiCo | 0.62 | |||
Currency Hedged MSCI South Korea | 0.77 |
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses is a fund’s total annual operating expenses.
For the iShares Currency Hedged MSCI Australia ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Australia ETF (“EWA”), after taking into account any fee waivers by EWA, plus 0.03%.
For the iShares Currency Hedged MSCI Canada ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Canada ETF (“EWC”), after taking into account any fee waivers by EWC, plus 0.03%.
For the iShares Currency Hedged MSCI Japan ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds, provided that the waiver be no greater than the Fund’s investment advisory fee of 0.53%. BFA has also contractually agreed to waive an additional portion of its investment advisory fee for the Fund through December 31, 2020 such that the Fund’s total annual operating expenses after fee waiver will be equal to the greater of the acquired fund fees and expenses or 0.48%.
For the iShares Currency Hedged MSCI Mexico ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Mexico ETF (“EWW”), after taking into account any fee waivers by EWW, plus 0.03%.
For the iShares Currency Hedged MSCI South Korea ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI South Korea ETF (“EWY”), after taking into account any fee waivers by EWY, plus 0.03%. BFA has also contractually agreed to an additional reduction in the investment advisory fee of 0.03% through December 31, 2020.
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% 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 statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
Fees Paid | ||||
iShares ETF | to BTC | |||
Currency Hedged MSCI Australia | $ | 128 | ||
Currency Hedged MSCI Canada | 1,581 | |||
Currency Hedged MSCI MexiCo | 490 | |||
Currency Hedged MSCI South Korea | 19 |
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Notes to Financial Statements (unaudited) (continued)
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
7. | PURCHASES AND SALES |
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||
Currency Hedged MSCI Australia | $ | 209,704 | $ | 92,703 | ||
Currency Hedged MSCI Canada | 2,157,768 | 2,410,053 | ||||
Currency Hedged MSCI Japan | 21,218,594 | 5,859,456 | ||||
Currency Hedged MSCI MexiCo | 43,534 | 101,407 | ||||
Currency Hedged MSCI South Korea | 165,186 | 671,553 |
For the six months ended February 29, 2020, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||
Currency Hedged MSCI Australia | $ | 1,311,795 | $ | — | ||
Currency Hedged MSCI Canada | 9,570,004 | 1,337,006 | ||||
Currency Hedged MSCI Japan | 244,975,090 | 265,887,698 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds' financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | ||
Currency Hedged MSCI Australia | $ | 468,506 | |
Currency Hedged MSCI Japan | 69,777,311 | ||
Currency Hedged MSCI MexiCo | 417,442 |
As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation |
| Net Unrealized Appreciation (Depreciation) | |||||||
Currency Hedged MSCI Australia | $ | 2,678,160 | $ | 85,636 | $ | (175,902 | ) | $ | (90,266 | ) | ||
Currency Hedged MSCI Canada | 47,136,864 | 726,224 | (1,212,803 | ) | (486,579 | ) | ||||||
Currency Hedged MSCI Japan | 361,262,228 | — | (48,836,461 | ) | (48,836,461 | ) | ||||||
Currency Hedged MSCI MexiCo | 1,169,369 | 35,104 | (93,320 | ) | (58,216 | ) | ||||||
Currency Hedged MSCI South Korea | 2,478,719 | 18,981 | (440,085 | ) | (421,104 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
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Notes to Financial Statements (unaudited) (continued)
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
10. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||
Currency Hedged MSCI Australia | ||||||||||||
Shares sold | 50,000 | $ | 1,321,172 | — | $ | — | ||||||
Currency Hedged MSCI Canada | ||||||||||||
Shares sold | 350,000 | $ | 9,479,812 | 1,850,000 | $ | 47,613,132 | ||||||
Shares redeemed | (50,000 | ) | (1,343,628 | ) | (600,000 | ) | (15,157,771 | ) | ||||
Net increase | 300,000 | $ | 8,136,184 | 1,250,000 | $ | 32,455,361 | ||||||
Currency Hedged MSCI Japan | ||||||||||||
Shares sold | 7,550,000 | $ | 246,426,505 | 14,950,000 | $ | 470,204,334 | ||||||
Shares redeemed | (8,300,000 | ) | (266,833,954 | ) | (34,700,000 | ) | (1,053,745,327 | ) | ||||
Net decrease | (750,000 | ) | $ | (20,407,449 | ) | (19,750,000 | ) | $ | (583,540,993 | ) | ||
Currency Hedged MSCI MexiCo | ||||||||||||
Shares sold. | — | $ | — | 50,000 | $ | 814,287 | ||||||
Shares redeemed | — | — | (50,000 | ) | (858,639 | ) | ||||||
Net decrease | — | $ | — | — | $ | (44,352 | ) | |||||
Currency Hedged MSCI South Korea | ||||||||||||
Shares sold. | — | $ | — | 1,450,000 | $ | 40,677,512 | ||||||
Shares redeemed | — | — | (1,400,000 | ) | (36,736,375 | ) | ||||||
Net increase | — | $ | — | 50,000 | $ | 3,941,137 |
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
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Notes to Financial Statements (unaudited) (continued)
may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
12. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares Currency Hedged MSCI Australia ETF, iShares Currency Hedged MSCI Canada ETF, iShares Currency Hedged MSCI Japan ETF, iShares Currency Hedged MSCI Mexico ETF and iShares Currency Hedged MSCI South Korea ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40Act Liquidity Risk Management Committee (the “Committee”).At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classification. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
44 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported 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.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||
Investment | Net Realized | Return of | Total Per | Investment | Net Realized | Return of | Total Per | |||||||||||||||||
iShares ETF | Income | Capital Gains | Capital | Share | Income | Capital Gains | Capital | Share | ||||||||||||||||
Currency Hedged MSCI Australia(a) | $ | 0.520742 | $ | — | $ | 0.040318 | $ | 0.561060 | 93 | % | — | % | 7 | % | 100 | % | ||||||||
Currency Hedged MSCI Canada(a) | 0.158619 | 0.371966 | 0.128232 | 0.658817 | 25 | 56 | 19 | 100 | ||||||||||||||||
Currency Hedged MSCI Japan(a) | 0.308492 | — | 0.086022 | 0.394514 | 78 | — | 22 | 100 | ||||||||||||||||
Currency Hedged MSCI Mexico(a) | 0.219054 | — | 0.001561 | 0.220615 | 99 | — | 1 | 100 | ||||||||||||||||
Currency Hedged MSCI South Korea(a) | 0.151074 | 5.053720 | 0.310940 | 5.515734 | 2 | 92 | 6 | 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. |
N o t e s t o F i n a n c i a l S t a t e m e n t s | 45 |
Electronic Delivery
Shareholders can sign up for email 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
46 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Glossary of Terms Used in this Report
Counterparty Abbreviations
ANZ | Australia and New Zealand Bank Group |
BNP | BNP Paribas SA |
BOA | Bank of America N.A. |
BSCH | Banco Santander Central Hispano |
CBA | Commonwealth Bank of Australia |
CITI | Citibank N.A. |
HSBC | HSBC Bank PLC |
MS | Morgan Stanley & Co. International PLC |
NAB | National Australia Bank Limited |
SSB | State Street Bank and Trust Co. |
TDB | Toronto Dominion Bank |
UBS | UBS AG |
Currency Abbreviations | |
AUD | Australian Dollar |
CAD | Canadian Dollar |
JPY | Japanese Yen |
KRW | South Korean Won |
MXN | Mexican Peso |
USD | United States Dollar |
N o t e s t o F i n a n c i a l S t a t e m e n t s | 47 |
Schedule of Investments (unaudited) | iShares® MSCI Australia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||
Common Stocks | ||||||
Airlines — 0.3% | ||||||
Qantas Airways Ltd. | 1,044,079 | $ | 3,722,629 | |||
Banks — 26.8% | ||||||
Australia & New Zealand Banking Group Ltd. | 4,063,291 | 65,049,794 | ||||
Bendigo & Adelaide Bank Ltd. | 748,480 | 4,434,932 | ||||
Commonwealth Bank of Australia | 2,537,589 | 133,801,096 | ||||
National Australia Bank Ltd. | 4,132,880 | 66,883,317 | ||||
Westpac Banking Corp. | 5,122,276 | 78,073,155 | ||||
348,242,294 | ||||||
Beverages — 1.0% | ||||||
Coca-Cola Amatil Ltd. | 725,797 | 5,376,832 | ||||
Treasury Wine Estates Ltd. | 1,037,122 | 7,375,588 | ||||
12,752,420 | ||||||
Biotechnology — 10.0% | ||||||
CSL Ltd. | 650,775 | 129,837,037 | ||||
Capital Markets — 4.8% | ||||||
ASX Ltd. | 277,103 | 13,246,011 | ||||
Macquarie Group Ltd. | 483,678 | 42,046,916 | ||||
Magellan Financial Group Ltd. | 182,615 | 6,565,238 | ||||
61,858,165 | ||||||
Chemicals — 0.9% | ||||||
Incitec Pivot Ltd. | 2,299,721 | 4,047,893 | ||||
Orica Ltd. | 581,352 | 7,421,568 | ||||
11,469,461 | ||||||
Commercial Services & Supplies — 1.3% | ||||||
Brambles Ltd. | 2,226,888 | 17,171,998 | ||||
Construction & Engineering — 0.2% | ||||||
CIMIC Group Ltd. | 139,761 | 2,148,244 | ||||
Construction Materials — 1.3% | ||||||
Boral Ltd. | 1,673,704 | 4,877,624 | ||||
James Hardie Industries PLC | 637,106 | 11,596,151 | ||||
16,473,775 | ||||||
Diversified Financial Services — 0.8% | ||||||
AMP Ltd.(a) | 4,931,666 | 5,325,982 | ||||
Challenger Ltd. | 788,296 | 4,620,027 | ||||
9,946,009 | ||||||
Diversified Telecommunication Services — 1.2% | ||||||
Telstra Corp. Ltd. | 5,961,444 | 13,183,686 | ||||
TPG Telecom Ltd. | 531,129 | 2,578,614 | ||||
15,762,300 | ||||||
Electric Utilities — 0.2% | ||||||
AusNet Services | 2,679,053 | 2,927,806 | ||||
Energy Equipment & Services — 0.3% | ||||||
Worley Ltd. | 483,155 | 3,900,157 | ||||
Equity Real Estate Investment Trusts (REITs) — 6.9% | ||||||
BGP Holdings PLC(a)(b) | 18,888,372 | 207 | ||||
Dexus | 1,571,003 | 12,316,913 | ||||
Goodman Group | 2,357,247 | 22,767,125 | ||||
GPT Group (The) | 2,789,694 | 10,396,225 | ||||
Mirvac Group | 5,633,890 | 11,042,648 | ||||
Scentre Group | 7,525,810 | 16,788,838 | ||||
Stockland | 3,414,702 | 10,369,671 |
Security | Shares | Value | ||||
Equity Real Estate Investment Trusts (REITs) (continued) | ||||||
Vicinity Centres | 4,591,452 | $ | 6,394,331 | |||
90,075,958 | ||||||
Food & Staples Retailing — 4.6% | ||||||
Coles Group Ltd. | 1,623,452 | 14,873,899 | ||||
Woolworths Group Ltd. | 1,807,211 | 45,209,725 | ||||
60,083,624 | ||||||
Gas Utilities — 0.9% | ||||||
APA Group | 1,689,786 | 11,701,116 | ||||
Health Care Equipment & Supplies — 0.8% | ||||||
Cochlear Ltd. | 82,786 | 11,080,379 | ||||
Health Care Providers & Services — 1.7% | ||||||
Ramsay Health Care Ltd. | 231,524 | 10,152,198 | ||||
Sonic Healthcare Ltd. | 648,585 | 12,043,443 | ||||
22,195,641 | ||||||
Hotels, Restaurants & Leisure — 2.3% | ||||||
Aristocrat Leisure Ltd. | 826,047 | 17,634,178 | ||||
Crown Resorts Ltd. | 533,401 | 3,494,128 | ||||
Flight Centre Travel Group Ltd. | 80,837 | 1,700,143 | ||||
Tabcorp Holdings Ltd. | 2,891,884 | 7,066,614 | ||||
29,895,063 | ||||||
Insurance — 3.9% | ||||||
Insurance Australia Group Ltd. | 3,322,888 | 13,668,714 | ||||
Medibank Pvt Ltd. | 3,944,089 | 7,196,551 | ||||
QBE Insurance Group Ltd. | 1,877,178 | 16,448,118 | ||||
Suncorp Group Ltd. | 1,804,328 | 13,192,279 | ||||
50,505,662 | ||||||
Interactive Media & Services — 0.4% | ||||||
REA Group Ltd. | 76,230 | 4,832,358 | ||||
IT Services — 0.5% | ||||||
Computershare Ltd. | 699,840 | 6,912,717 | ||||
Metals & Mining — 13.3% | ||||||
Alumina Ltd. | 3,498,376 | 4,375,820 | ||||
BHP Group Ltd. | 4,222,791 | 91,480,841 | ||||
BlueScope Steel Ltd. | 726,693 | 5,538,087 | ||||
Fortescue Metals Group Ltd. | 1,994,020 | 12,959,293 | ||||
Newcrest Mining Ltd. | 1,104,352 | 18,726,411 | ||||
Rio Tinto Ltd. | 531,794 | 29,922,625 | ||||
South32 Ltd. | 7,081,632 | 10,136,257 | ||||
173,139,334 | ||||||
Multi-Utilities — 0.9% | ||||||
AGL Energy Ltd. | 923,860 | 11,400,906 | ||||
Multiline Retail — 3.4% | ||||||
Harvey Norman Holdings Ltd. | 795,541 | 1,902,952 | ||||
Wesfarmers Ltd. | 1,625,337 | 42,598,593 | ||||
44,501,545 | ||||||
Oil, Gas & Consumable Fuels — 4.9% | ||||||
Caltex Australia Ltd. | 357,647 | 7,540,387 | ||||
Oil Search Ltd. | 1,965,269 | 6,956,417 | ||||
Origin Energy Ltd. | 2,534,241 | 11,404,983 | ||||
Santos Ltd. | 2,532,865 | 11,153,830 | ||||
Washington H Soul Pattinson & Co. Ltd. | 171,307 | 2,155,987 | ||||
Woodside Petroleum Ltd. | 1,351,235 | 24,324,145 | ||||
63,535,749 | ||||||
Professional Services — 0.5% | ||||||
Seek Ltd. | 478,934 | 6,385,832 |
S C H E D U L E O F I N V E S T M E N T S
Schedule of Investments (unaudited) (continued) | iShares® MSCI Australia ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||
Real Estate Management & Development — 0.7% | ||||||
Lendlease Group | 807,901 | $ | 9,183,363 | |||
Road & Rail — 0.7% | ||||||
Aurizon Holdings Ltd. | 2,812,661 | 8,759,026 | ||||
Software — 0.1% | ||||||
WiseTech Global Ltd.(c) | 207,454 | 2,019,715 | ||||
Transportation Infrastructure — 3.5% | ||||||
Sydney Airport | 1,584,951 | 7,940,140 | ||||
Transurban Group | 3,919,528 | 37,527,662 | ||||
45,467,802 | ||||||
Total Common Stocks — 99.1% (Cost: $1,633,601,912) | 1,287,888,085 | |||||
Short-Term Investments | ||||||
Money Market Funds — 0.1% | ||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 9,108 | 9,114 |
Security | Shares | Value | ||||
Money Market Funds (continued) | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 572,000 | $ | 572,000 | |||
581,114 | ||||||
Total Short-Term Investments — 0.1% (Cost: $581,112) | 581,114 | |||||
Total Investments in Securities — 99.2% (Cost: $1,634,183,024) | 1,288,469,199 | |||||
Other Assets, Less Liabilities — 0.8% | 10,584,698 | |||||
Net Assets — 100.0% | $ | 1,299,053,897 |
(a) | Non-income producing security. |
(b) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(c) | All or a portion of this security is on loan. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 9,108 | 9,108 | $ | 9,114 | $ | 1,441 | (b) | $ | 332 | $ | 2 | |||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 603,000 | (31,000 | ) | 572,000 | 572,000 | 8,844 | — | — | |||||||||||||
$ | 581,114 | $ | 10,285 | $ | 332 | $ | 2 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | |||||||
Long Contracts ASX SPI 200 Index | 108 | 03/19/20 | $ | 11,096 | $ | (830,837 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts | |||
Liabilities — Derivative Financial Instruments | |||
Futures contracts | |||
Unrealized depreciation on futures contracts(a) | $ | 830,837 | |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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). |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Australia ETF |
February 29, 2020 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 454,800 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (937,733 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 13,032,157 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 1,287,887,878 | $ | — | $ | 207 | $ | 1,287,888,085 | ||||||||
Money Market Funds | 581,114 | — | — | 581,114 | ||||||||||||
$ | 1,288,468,992 | $ | — | $ | 207 | $ | 1,288,469,199 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (830,837 | ) | $ | — | $ | — | $ | (830,837 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited) | iShares® MSCI Canada ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.6% | ||||||||
Bombardier Inc., Class B(a) | 3,663,918 | $ | 2,620,301 | |||||
CAE Inc. | 458,382 | 12,262,449 | ||||||
14,882,750 | ||||||||
Airlines — 0.2% | ||||||||
Air Canada(a) | 222,003 | 5,664,397 | ||||||
Auto Components — 0.9% | ||||||||
Magna International Inc. | 499,984 | 22,754,142 | ||||||
Banks — 25.7% | ||||||||
Bank of Montreal | 1,098,741 | 74,657,255 | ||||||
Bank of Nova Scotia (The) | 2,095,684 | 109,627,840 | ||||||
Canadian Imperial Bank of Commerce | 765,643 | 58,269,519 | ||||||
National Bank of Canada | 575,604 | 29,917,601 | ||||||
Royal Bank of Canada | 2,465,921 | 183,371,128 | ||||||
Toronto-Dominion Bank (The) | 3,115,404 | 160,232,050 | ||||||
616,075,393 | ||||||||
Capital Markets — 4.2% | ||||||||
Brookfield Asset Management Inc., Class A | 1,531,034 | 91,552,948 | ||||||
CI Financial Corp. | 378,592 | 6,286,599 | ||||||
IGM Financial Inc. | 145,533 | 3,880,229 | ||||||
101,719,776 | ||||||||
Chemicals — 1.8% | ||||||||
Methanex Corp. | 111,176 | 3,200,239 | ||||||
Nutrien Ltd. | 985,110 | 39,812,431 | ||||||
43,012,670 | ||||||||
Construction & Engineering — 0.5% | ||||||||
WSP Global Inc. | 182,596 | 12,034,319 | ||||||
Containers & Packaging — 0.4% | ||||||||
CCL Industries Inc., Class B, NVS | 257,851 | 8,511,475 | ||||||
Diversified Financial Services — 0.3% | ||||||||
Onex Corp. | 146,870 | 8,245,333 | ||||||
Diversified Telecommunication Services — 1.0% | ||||||||
BCE Inc. | 264,863 | 11,631,597 | ||||||
TELUS Corp. | 342,223 | 12,349,448 | ||||||
23,981,045 | ||||||||
Electric Utilities — 2.5% | ||||||||
Emera Inc. | 413,767 | 17,434,098 | ||||||
Fortis Inc. | 753,502 | 30,491,473 | ||||||
Hydro One Ltd.(b) | 568,916 | 11,417,735 | ||||||
59,343,306 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 0.8% | ||||||||
Canadian Apartment Properties REIT | 142,724 | 5,967,965 | ||||||
First Capital Real Estate Investment Trust | 188,713 | 2,814,493 | ||||||
H&R Real Estate Investment Trust | 247,750 | 3,582,395 | ||||||
RioCan REIT | 267,813 | 5,001,730 | ||||||
SmartCentres Real Estate Investment Trust | 127,495 | 2,733,494 | ||||||
20,100,077 | ||||||||
Food & Staples Retailing — 3.9% | ||||||||
Alimentation Couche-Tard Inc., Class B | 1,496,768 | 45,448,850 | ||||||
Empire Co. Ltd., Class A, NVS | 299,070 | 6,681,647 | ||||||
George Weston Ltd. | 132,775 | 9,995,094 | ||||||
Loblaw Companies Ltd. | 314,251 | 15,567,990 | ||||||
Metro Inc. | 436,293 | 16,992,139 | ||||||
94,685,720 |
Security | Shares | Value | ||||||
Food Products — 0.5% | ||||||||
Saputo Inc | 418,897 | $ | 11,658,652 | |||||
Gas Utilities — 0.3% | ||||||||
AltaGas Ltd | 481,175 | 7,194,236 | ||||||
Hotels, Restaurants & Leisure — 1.6% | ||||||||
Restaurant Brands International Inc | 485,813 | 28,630,883 | ||||||
Stars Group Inc. (The)(a) | 394,997 | 9,051,371 | ||||||
37,682,254 | ||||||||
Insurance — 7.8% | ||||||||
Fairfax Financial Holdings Ltd | 46,168 | 19,886,616 | ||||||
Great-West Lifeco Inc | 479,224 | 11,270,609 | ||||||
iA Financial Corp. Inc | 183,891 | 8,752,409 | ||||||
Intact Financial Corp | 239,779 | 25,988,339 | ||||||
Manulife Financial Corp. | 3,351,610 | 56,328,321 | ||||||
Power Corp. of Canada. | 971,482 | 21,472,694 | ||||||
Sun Life Financial Inc. | 1,011,050 | 43,677,721 | ||||||
187,376,709 | ||||||||
IT Services — 4.7% | ||||||||
CGI Inc.(a) | 412,858 | 29,006,323 | ||||||
Shopify Inc., Class A(a) | 178,250 | 82,757,079 | ||||||
111,763,402 | ||||||||
Media — 0.9% | ||||||||
Quebecor Inc., Class B. | 305,591 | 7,139,221 | ||||||
Shaw Communications Inc., Class B, NVS | 803,808 | 13,910,277 | ||||||
21,049,498 | ||||||||
Metals & Mining — 7.6% | ||||||||
Agnico Eagle Mines Ltd. | 410,879 | 19,494,829 | ||||||
Barrick Gold Corp. | 3,057,413 | 58,308,022 | ||||||
First Quantum Minerals Ltd. | 1,185,741 | 8,762,656 | ||||||
Franco-Nevada Corp | 324,314 | 34,814,800 | ||||||
Kinross Gold Corp.(a) | 2,161,562 | 10,869,403 | ||||||
Kirkland Lake Gold Ltd. | 467,907 | 15,089,726 | ||||||
Lundin Mining Corp. | 1,142,339 | 5,829,346 | ||||||
Teck Resources Ltd., Class B. | 844,513 | 8,493,258 | ||||||
Wheaton Precious Metals Corp. | 769,079 | 21,868,921 | ||||||
183,530,961 | ||||||||
Multi-Utilities — 1.1% | ||||||||
Algonquin Power & Utilities Corp. | 893,570 | 13,579,788 | ||||||
Atco Ltd., Class I, NVS | 133,162 | 4,967,969 | ||||||
Canadian Utilities Ltd., Class A, NVS | 226,113 | 6,690,660 | ||||||
25,238,417 | ||||||||
Multiline Retail — 1.0% | ||||||||
Canadian Tire Corp. Ltd., Class A, NVS | 100,283 | 9,860,583 | ||||||
Dollarama Inc | 514,284 | 15,117,999 | ||||||
24,978,582 | ||||||||
Oil, Gas & Consumable Fuels — 18.3% | ||||||||
Cameco Corp | 683,198 | 5,908,987 | ||||||
Canadian Natural Resources Ltd. | 2,034,788 | 52,372,276 | ||||||
Cenovus Energy Inc. | 1,798,327 | 13,222,697 | ||||||
Enbridge Inc | 3,479,280 | 129,492,926 | ||||||
Husky Energy Inc. | 609,514 | 2,901,475 | ||||||
Imperial Oil Ltd | 455,053 | 9,963,130 | ||||||
Inter Pipeline Ltd. | 710,028 | 10,504,828 | ||||||
Keyera Corp | 368,683 | 8,849,381 | ||||||
Ovintiv Inc. | 446,746 | 5,161,866 | ||||||
Parkland Fuel Corp | 254,252 | 7,993,023 | ||||||
Pembina Pipeline Corp | 942,792 | 33,958,352 | ||||||
PrairieSky Royalty Ltd | 362,918 | 3,365,984 |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited) | iShares® MSCI Canada ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Suncor Energy Inc. | 2,644,158 | $ | 72,862,818 | |||||
TC Energy Corp. | 1,605,216 | 83,659,933 | ||||||
440,217,676 | ||||||||
Paper & Forest Products — 0.1% | ||||||||
West Fraser Timber Co. Ltd. | 91,746 | 3,425,567 | ||||||
Pharmaceuticals — 1.0% | ||||||||
Aurora Cannabis Inc.(a)(c) | 1,860,502 | 2,508,667 | ||||||
Bausch Health Companies Inc.(a) | 545,626 | 12,088,440 | ||||||
Canopy Growth Corp.(a)(c) | 359,039 | 6,732,232 | ||||||
Cronos Group Inc.(a)(c) | 321,929 | 1,868,236 | ||||||
23,197,575 | ||||||||
Professional Services — 1.1% | ||||||||
Thomson Reuters Corp. | 344,144 | 25,563,078 | ||||||
Road & Rail — 6.8% | ||||||||
Canadian National Railway Co. | 1,230,487 | 104,307,458 | ||||||
Canadian Pacific Railway Ltd. | 236,063 | 58,502,684 | ||||||
162,810,142 | ||||||||
Software — 2.5% | ||||||||
BlackBerry Ltd.(a) | 897,584 | 4,633,856 | ||||||
Constellation Software Inc. | 34,668 | 35,315,725 | ||||||
Open Text Corp. | 465,706 | 19,497,655 | ||||||
59,447,236 | ||||||||
Textiles, Apparel & Luxury Goods — 0.4% | ||||||||
Gildan Activewear Inc. | 350,762 | 8,495,007 | ||||||
Wireless Telecommunication Services — 1.2% | ||||||||
Rogers Communications Inc., Class B, NVS | 619,894 | 28,405,170 | ||||||
Total Common Stocks — 99.7% | ||||||||
(Cost: $2,812,777,858) | 2,393,044,565 |
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 8,156,331 | $ | 8,162,041 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 1,209,000 | 1,209,000 | ||||||
9,371,041 | ||||||||
Total Short-Term Investments — 0.4% | ||||||||
(Cost: $9,366,094) | 9,371,041 | |||||||
Total Investments in Securities — 100.1% | ||||||||
(Cost: $2,822,143,952) | 2,402,415,606 | |||||||
Other Assets, Less Liabilities — (0.1)% | (2,053,274 | ) | ||||||
Net Assets — 100.0% | $ | 2,400,362,332 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | All or a portion of this security is on loan. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 52,307,444 | (44,151,113 | ) | 8,156,331 | $ | 8,162,041 | $ | 1,181,192 | (b) | $ | 8,941 | $ | (6,873 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 986,000 | 223,000 | 1,209,000 | 1,209,000 | 12,619 | — | — | |||||||||||||||||||||
$ | 9,371,041 | $ | 1,193,811 | $ | 8,941 | $ | (6,873 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
S&P/TSX 60 Index | 49 | 03/19/20 | $ | 7,090 | $ | (331,363 | ) |
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited)(continued) | iShares® MSCI Canada ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 331,363 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 84,131 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (400,325 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 9,624,872 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 2,393,044,565 | $ | — | $ | — | $ | 2,393,044,565 | ||||||||
Money Market Funds | 9,371,041 | — | — | 9,371,041 | ||||||||||||
$ | 2,402,415,606 | $ | — | $ | — | $ | 2,402,415,606 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (331,363 | ) | $ | — | $ | — | $ | (331,363 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited) | iShares® MSCI Japan ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
SG Holdings Co. Ltd. | 455,700 | $ | 8,990,216 | |||||
Yamato Holdings Co. Ltd. | 976,900 | 15,414,488 | ||||||
24,404,704 | ||||||||
Airlines — 0.2% | ||||||||
ANA Holdings Inc. | 364,800 | 9,833,180 | ||||||
Japan Airlines Co. Ltd. | 365,600 | 9,076,872 | ||||||
18,910,052 | ||||||||
Auto Components — 2.2% | ||||||||
Aisin Seiki Co. Ltd. | 519,100 | 16,843,740 | ||||||
Bridgestone Corp. | 1,820,500 | 60,860,548 | ||||||
Denso Corp. | 1,381,300 | 54,040,569 | ||||||
Koito Manufacturing Co. Ltd. | 330,500 | 13,052,705 | ||||||
NGK Spark Plug Co. Ltd. | 498,400 | 8,201,548 | ||||||
Stanley Electric Co. Ltd. | 425,500 | 10,398,350 | ||||||
Sumitomo Electric Industries Ltd. | 2,393,600 | 28,637,100 | ||||||
Sumitomo Rubber Industries Ltd. | 551,400 | 5,740,715 | ||||||
Toyoda Gosei Co. Ltd. | 200,300 | 4,282,128 | ||||||
Toyota Industries Corp. | 464,400 | 24,583,730 | ||||||
Yokohama Rubber Co. Ltd. (The) | 379,600 | 6,183,259 | ||||||
232,824,392 | ||||||||
Automobiles — 7.6% | ||||||||
Honda Motor Co. Ltd. | 5,195,300 | 134,837,457 | ||||||
Isuzu Motors Ltd. | 1,745,000 | 16,436,472 | ||||||
Mazda Motor Corp. | 1,819,100 | 12,648,449 | ||||||
Mitsubishi Motors Corp. | 2,118,700 | 7,051,530 | ||||||
Nissan Motor Co. Ltd. | 7,367,500 | 31,665,258 | ||||||
Subaru Corp. | 1,963,700 | 47,688,427 | ||||||
Suzuki Motor Corp. | 1,174,700 | 47,231,946 | ||||||
Toyota Motor Corp. | 7,301,500 | 482,434,437 | ||||||
Yamaha Motor Co. Ltd. | 889,700 | 14,253,016 | ||||||
794,246,992 | ||||||||
Banks — 5.5% | ||||||||
Aozora Bank Ltd. | 376,900 | 9,441,281 | ||||||
Bank of Kyoto Ltd. (The) | 177,600 | 6,050,897 | ||||||
Chiba Bank Ltd. (The) | 1,713,100 | 8,465,047 | ||||||
Concordia Financial Group Ltd. | 3,322,400 | 11,458,145 | ||||||
Fukuoka Financial Group Inc. | 555,600 | 8,468,052 | ||||||
Japan Post Bank Co. Ltd. | 1,273,000 | 11,376,925 | ||||||
Mebuki Financial Group Inc. | 2,772,780 | 5,423,970 | ||||||
Mitsubishi UFJ Financial Group Inc. | 39,303,580 | 193,812,397 | ||||||
Mizuho Financial Group Inc. | 76,736,980 | 105,005,129 | ||||||
Resona Holdings Inc. | 6,628,400 | 25,145,703 | ||||||
Seven Bank Ltd. | 1,840,100 | 4,844,838 | ||||||
Shinsei Bank Ltd. | 616,400 | 8,211,809 | ||||||
Shizuoka Bank Ltd. (The) | 1,417,500 | 8,962,453 | ||||||
Sumitomo Mitsui Financial Group Inc. | 4,164,000 | 134,495,675 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 1,017,332 | 34,896,662 | ||||||
576,058,983 | ||||||||
Beverages — 1.2% | ||||||||
Asahi Group Holdings Ltd. | 1,152,900 | 44,356,696 | ||||||
Coca-Cola Bottlers Japan Holdings Inc. | 396,300 | 9,129,982 | ||||||
Kirin Holdings Co. Ltd. | 2,626,600 | 50,527,929 | ||||||
Suntory Beverage & Food Ltd. | 454,500 | 17,317,897 | ||||||
121,332,504 | ||||||||
Biotechnology — 0.1% | ||||||||
PeptiDream Inc.(a) | 303,300 | 12,090,947 |
Security | Shares | Value | ||||||
Building Products — 1.5% | ||||||||
AGC Inc | 584,800 | $ | 16,806,935 | |||||
Daikin Industries Ltd. | 797,200 | 108,828,350 | ||||||
LIXIL Group Corp. | 847,000 | 12,720,901 | ||||||
TOTO Ltd. | 455,300 | 17,285,065 | ||||||
155,641,251 | ||||||||
Capital Markets — 1.1% | ||||||||
Daiwa Securities Group Inc. | 4,841,200 | 20,609,827 | ||||||
Japan Exchange Group Inc. | 1,628,100 | 27,395,369 | ||||||
Nomura Holdings Inc | 10,559,100 | 46,939,123 | ||||||
SBI Holdings Inc | 753,310 | 15,189,814 | ||||||
110,134,133 | ||||||||
Chemicals — 4.0% | ||||||||
Air Water Inc. | 581,800 | 7,707,711 | ||||||
Asahi Kasei Corp. | 4,013,700 | 33,515,409 | ||||||
Daicel Corp. | 778,800 | 6,721,947 | ||||||
Hitachi Chemical Co. Ltd. | 323,400 | 13,656,765 | ||||||
JSR Corp. | 609,000 | 10,727,298 | ||||||
Kansai Paint Co. Ltd. | 574,000 | 12,542,697 | ||||||
Kuraray Co. Ltd. | 1,002,400 | 10,445,442 | ||||||
Mitsubishi Chemical Holdings Corp. | 4,067,500 | 27,388,173 | ||||||
Mitsubishi Gas Chemical Co. Inc. | 521,200 | 7,905,096 | ||||||
Mitsui Chemicals Inc | 584,900 | 12,683,272 | ||||||
Nippon Paint Holdings Co. Ltd. | 454,700 | 20,761,113 | ||||||
Nissan Chemical Corp. | 401,100 | 16,975,122 | ||||||
Nitto Denko Corp. | 505,800 | 25,415,436 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,128,800 | 127,096,611 | ||||||
Showa Denko KK | 437,200 | 9,452,097 | ||||||
Sumitomo Chemical Co. Ltd. | 4,739,300 | 17,267,370 | ||||||
Taiyo Nippon Sanso Corp. | 419,600 | 7,511,682 | ||||||
Teijin Ltd. | 578,800 | 9,524,591 | ||||||
Toray Industries Inc | 4,387,900 | 25,412,517 | ||||||
Tosoh Corp. | 822,900 | 11,298,520 | ||||||
414,008,869 | ||||||||
Commercial Services & Supplies — 1.0% | ||||||||
Dai Nippon Printing Co. Ltd. | 774,500 | 18,632,805 | ||||||
Park24 Co. Ltd. | 368,700 | 7,188,394 | ||||||
Secom Co. Ltd. | 673,400 | 53,533,630 | ||||||
Sohgo Security Services Co. Ltd. | 222,500 | 10,416,956 | ||||||
Toppan Printing Co. Ltd. | 892,900 | 15,570,805 | ||||||
105,342,590 | ||||||||
Construction & Engineering — 0.8% | ||||||||
JGC Holdings Corp. | 709,200 | 8,711,723 | ||||||
Kajima Corp. | 1,423,000 | 15,342,780 | ||||||
Obayashi Corp. | 2,056,600 | 20,763,338 | ||||||
Shimizu Corp. | 1,869,700 | 17,021,697 | ||||||
Taisei Corp. | 645,200 | 22,101,831 | ||||||
83,941,369 | ||||||||
Construction Materials — 0.1% | ||||||||
Taiheiyo Cement Corp. | 385,200 | 9,509,921 | ||||||
Consumer Finance — 0.2% | ||||||||
Acom Co. Ltd. | 1,227,500 | 5,052,705 | ||||||
AEON Financial Service Co. Ltd. | 352,770 | 5,128,108 | ||||||
Credit Saison Co. Ltd. | 496,500 | 7,217,466 | ||||||
17,398,279 | ||||||||
Containers & Packaging — 0.1% | ||||||||
Toyo Seikan Group Holdings Ltd. | 455,200 | 7,300,756 |
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited)(continued) | iShares® MSCI Japan ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Consumer Services — 0.1% | ||||||||
Benesse Holdings Inc. | 221,600 | $ | 5,715,396 | |||||
Diversified Financial Services — 0.8% | ||||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 1,261,300 | 7,214,779 | ||||||
ORIX Corp. | 4,219,100 | 68,137,692 | ||||||
Tokyo Century Corp. | 137,300 | 5,702,536 | ||||||
81,055,007 | ||||||||
Diversified Telecommunication Services — 0.9% | ||||||||
Nippon Telegraph & Telephone Corp. | 4,095,400 | 96,039,626 | ||||||
Electric Utilities — 1.0% | ||||||||
Chubu Electric Power Co. Inc. | 2,057,600 | 26,849,043 | ||||||
Chugoku Electric Power Co. Inc. (The) | 880,000 | 11,715,385 | ||||||
Kansai Electric Power Co. Inc. (The) | 2,235,100 | 24,129,921 | ||||||
Kyushu Electric Power Co. Inc. | 1,209,800 | 8,770,811 | ||||||
Tohoku Electric Power Co. Inc. | 1,343,800 | 11,810,341 | ||||||
Tokyo Electric Power Co. Holdings Inc.(a) | 4,819,600 | 18,319,529 | ||||||
101,595,030 | ||||||||
Electrical Equipment — 1.6% | ||||||||
Fuji Electric Co. Ltd. | 407,600 | 11,196,577 | ||||||
Mitsubishi Electric Corp. | 5,818,000 | 73,948,714 | ||||||
Nidec Corp. | 718,300 | 85,105,215 | ||||||
170,250,506 | ||||||||
Electronic Equipment, Instruments & Components — 5.8% | ||||||||
Alps Alpine Co. Ltd. | 660,700 | 10,161,788 | ||||||
Hamamatsu Photonics KK | 455,500 | 17,672,716 | ||||||
Hirose Electric Co. Ltd. | 102,158 | 10,853,666 | ||||||
Hitachi High-Technologies Corp. | 212,300 | 15,686,562 | ||||||
Hitachi Ltd. | 3,089,100 | 104,158,501 | ||||||
Keyence Corp. | 582,704 | 185,888,329 | ||||||
Kyocera Corp. | 1,019,300 | 64,220,672 | ||||||
Murata Manufacturing Co. Ltd. | 1,833,300 | 97,235,520 | ||||||
Omron Corp. | 605,900 | 32,804,487 | ||||||
Shimadzu Corp. | 718,300 | 17,500,509 | ||||||
TDK Corp. | 417,800 | 40,476,614 | ||||||
Yokogawa Electric Corp. | 721,900 | 11,625,090 | ||||||
608,284,454 | ||||||||
Entertainment — 1.7% | ||||||||
Konami Holdings Corp. | 304,100 | 10,981,037 | ||||||
Nexon Co. Ltd. | 1,564,700 | 24,906,966 | ||||||
Nintendo Co. Ltd. | 355,000 | 119,370,046 | ||||||
Square Enix Holdings Co. Ltd. | 301,700 | 12,167,014 | ||||||
Toho Co. Ltd. | 357,700 | 11,026,306 | ||||||
178,451,369 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 1.6% | ||||||||
Daiwa House REIT Investment Corp. | 5,845 | 14,587,438 | ||||||
Japan Prime Realty Investment Corp. | 2,482 | 10,929,866 | ||||||
Japan Real Estate Investment Corp. | 4,255 | 29,033,329 | ||||||
Japan Retail Fund Investment Corp. | 8,350 | 15,877,115 | ||||||
Nippon Building Fund Inc. | 4,346 | 32,595,504 | ||||||
Nippon Prologis REIT Inc. | 6,323 | 17,157,948 | ||||||
Nomura Real Estate Master Fund Inc. | 13,114 | 20,826,294 | ||||||
Orix JREIT Inc. | 8,401 | 15,966,300 | ||||||
United Urban Investment Corp. | 9,292 | 14,868,578 | ||||||
171,842,372 | ||||||||
Food & Staples Retailing — 1.7% | ||||||||
Aeon Co. Ltd. | 2,085,200 | 38,943,452 | ||||||
FamilyMart Co. Ltd. | 816,400 | 18,058,966 | ||||||
Lawson Inc. | 166,200 | 8,828,870 |
Security | Shares | Value | ||||||
Food & Staples Retailing (continued) | ||||||||
Seven & i Holdings Co. Ltd. | 2,403,980 | $ | 82,372,503 | |||||
Sundrug Co. Ltd. | 224,800 | 7,033,792 | ||||||
Tsuruha Holdings Inc | 116,100 | 13,486,608 | ||||||
Welcia Holdings Co. Ltd. | 152,900 | 9,213,832 | ||||||
177,938,023 | ||||||||
Food Products — 1.4% | ||||||||
Ajinomoto Co. Inc. | 1,399,800 | 23,514,927 | ||||||
Calbee Inc | 255,300 | 6,539,599 | ||||||
Kikkoman Corp. | 461,300 | 21,425,977 | ||||||
MEIJI Holdings Co. Ltd. | 361,356 | 21,574,492 | ||||||
NH Foods Ltd. | 263,700 | 9,950,021 | ||||||
Nisshin Seifun Group Inc | 627,875 | 10,629,025 | ||||||
Nissin Foods Holdings Co. Ltd. | 201,600 | 15,886,525 | ||||||
Toyo Suisan Kaisha Ltd. | 287,600 | 11,398,415 | ||||||
Yakult Honsha Co. Ltd. | 380,400 | 17,403,921 | ||||||
Yamazaki Baking Co. Ltd. | 388,700 | 6,612,567 | ||||||
144,935,469 | ||||||||
Gas Utilities — 0.5% | ||||||||
Osaka Gas Co. Ltd. | 1,191,600 | 19,277,263 | ||||||
Toho Gas Co. Ltd. | 235,100 | 8,031,739 | ||||||
Tokyo Gas Co. Ltd. | 1,204,400 | 24,374,961 | ||||||
51,683,963 | ||||||||
Health Care Equipment & Supplies — 2.8% | ||||||||
Asahi Intecc Co. Ltd. | 618,900 | 14,837,764 | ||||||
Hoya Corp. | 1,211,500 | 107,924,753 | ||||||
Olympus Corp. | 3,709,000 | 67,464,497 | ||||||
Sysmex Corp. | 536,100 | 34,388,133 | ||||||
Terumo Corp. | 2,052,800 | 66,190,501 | ||||||
290,805,648 | ||||||||
Health Care Providers & Services — 0.3% | ||||||||
Alfresa Holdings Corp. | 592,500 | 10,414,685 | ||||||
Medipal Holdings Corp. | 582,500 | 10,649,330 | ||||||
Suzuken Co. Ltd. | 225,740 | 7,481,764 | ||||||
28,545,779 | ||||||||
Health Care Technology — 0.3% | ||||||||
M3 Inc | 1,402,600 | 36,227,169 | ||||||
Hotels, Restaurants & Leisure — 0.8% | ||||||||
McDonald's Holdings Co. Japan Ltd. | 204,400 | 8,584,175 | ||||||
Oriental Land Co. Ltd. | 634,800 | 72,181,171 | ||||||
80,765,346 | ||||||||
Household Durables — 4.0% | ||||||||
Casio Computer Co. Ltd. | 613,600 | 10,563,716 | ||||||
Iida Group Holdings Co. Ltd. | 464,280 | 6,279,929 | ||||||
Nikon Corp. | 1,007,700 | 10,360,537 | ||||||
Panasonic Corp. | 7,024,015 | 67,104,691 | ||||||
Rinnai Corp. | 103,200 | 7,051,258 | ||||||
Sekisui Chemical Co. Ltd. | 1,157,800 | 17,270,664 | ||||||
Sekisui House Ltd. | 1,985,900 | 38,976,038 | ||||||
Sharp Corp. | 674,400 | 7,877,847 | ||||||
Sony Corp. | 4,069,300 | 249,405,667 | ||||||
414,890,347 | ||||||||
Household Products — 0.6% | ||||||||
Lion Corp. | 715,500 | 11,847,059 | ||||||
Pigeon Corp. | 366,300 | 12,429,036 | ||||||
Unicharm Corp. | 1,283,200 | 41,613,439 | ||||||
65,889,534 |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited)(continued) | iShares® MSCI Japan ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers — 0.1% | ||||||||
Electric Power Development Co. Ltd. | 459,500 | $ | 9,866,055 | |||||
Industrial Conglomerates — 0.4% | ||||||||
Keihan Holdings Co. Ltd. | 315,200 | 12,799,110 | ||||||
Toshiba Corp. | 1,227,200 | 33,278,264 | ||||||
46,077,374 | ||||||||
Insurance — 3.1% | ||||||||
Dai-ichi Life Holdings Inc. | 3,434,100 | 47,071,032 | ||||||
Japan Post Holdings Co. Ltd. | 5,005,500 | 43,653,398 | ||||||
Japan Post Insurance Co. Ltd. | 715,500 | 10,991,364 | ||||||
MS&AD Insurance Group Holdings Inc. | 1,513,340 | 48,866,298 | ||||||
Sompo Holdings Inc. | 1,077,350 | 40,111,599 | ||||||
Sony Financial Holdings Inc. | 482,200 | 9,647,129 | ||||||
T&D Holdings Inc. | 1,758,800 | 17,365,429 | ||||||
Tokio Marine Holdings Inc. | 2,039,100 | 109,663,182 | ||||||
327,369,431 | ||||||||
Interactive Media & Services — 0.5% | ||||||||
Kakaku.com Inc. | 444,400 | 9,517,118 | ||||||
LINE Corp.(a)(b) | 196,400 | 9,668,419 | ||||||
Z Holdings Corp. | 8,477,000 | 30,885,468 | ||||||
50,071,005 | ||||||||
Internet & Direct Marketing Retail — 0.3% | ||||||||
Mercari Inc.(a)(b) | 236,000 | 5,345,089 | ||||||
Rakuten Inc. | 2,729,800 | 22,852,727 | ||||||
ZOZO Inc. | 345,100 | 4,843,845 | ||||||
33,041,661 | ||||||||
IT Services — 1.9% | ||||||||
Fujitsu Ltd. | 626,700 | 65,130,552 | ||||||
GMO Payment Gateway Inc.(b) | 131,048 | 8,042,811 | ||||||
Itochu Techno-Solutions Corp. | 316,200 | 8,776,738 | ||||||
NEC Corp. | 845,000 | 31,648,820 | ||||||
Nomura Research Institute Ltd. | 1,090,912 | 23,817,714 | ||||||
NTT Data Corp. | 2,008,700 | 24,041,457 | ||||||
Obic Co. Ltd. | 202,500 | 24,949,937 | ||||||
Otsuka Corp. | 323,200 | 13,828,100 | ||||||
200,236,129 | ||||||||
Leisure Products — 1.0% | ||||||||
Bandai Namco Holdings Inc. | 636,698 | 31,697,662 | ||||||
Sankyo Co. Ltd. | 146,300 | 4,808,172 | ||||||
Sega Sammy Holdings Inc. | 559,100 | 7,375,880 | ||||||
Shimano Inc. | 235,200 | 32,969,211 | ||||||
Yamaha Corp. | 458,900 | 22,548,278 | ||||||
99,399,203 | ||||||||
Machinery — 5.2% | ||||||||
Amada Holdings Co. Ltd. | 1,042,800 | 9,744,981 | ||||||
Daifuku Co. Ltd. | 328,200 | 19,534,084 | ||||||
FANUC Corp. | 617,000 | 102,790,433 | ||||||
Hino Motors Ltd. | 899,800 | 7,440,983 | ||||||
Hitachi Construction Machinery Co. Ltd. | 336,100 | 8,297,727 | ||||||
Hoshizaki Corp. | 181,000 | 15,337,134 | ||||||
IHI Corp. | 461,200 | 9,701,597 | ||||||
JTEKT Corp. | 643,500 | 6,281,978 | ||||||
Kawasaki Heavy Industries Ltd. | 455,300 | 8,273,193 | ||||||
Komatsu Ltd. | 2,933,900 | 59,363,433 | ||||||
Kubota Corp. | 3,330,300 | 47,022,175 | ||||||
Kurita Water Industries Ltd. | 322,300 | 8,351,444 | ||||||
Makita Corp. | 714,500 | 24,740,718 | ||||||
MINEBEA MITSUMI Inc. | 1,160,600 | 20,486,556 | ||||||
MISUMI Group Inc. | 905,900 | 19,123,296 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Mitsubishi Heavy Industries Ltd. | 1,017,500 | $ | 32,251,727 | |||||
Nabtesco Corp. | 355,900 | 9,608,129 | ||||||
NGK Insulators Ltd. | 832,100 | 13,091,120 | ||||||
NSK Ltd. | 1,140,300 | 8,742,670 | ||||||
SMC Corp. | 189,700 | 75,746,340 | ||||||
Sumitomo Heavy Industries Ltd. | 347,300 | 7,572,888 | ||||||
THK Co. Ltd. | 385,000 | 8,826,821 | ||||||
Yaskawa Electric Corp. | 764,300 | 23,985,125 | ||||||
546,314,552 | ||||||||
Marine — 0.1% | ||||||||
Mitsui OSK Lines Ltd. | 364,300 | 7,568,686 | ||||||
Nippon Yusen KK | 481,100 | 6,886,556 | ||||||
14,455,242 | ||||||||
Media — 0.4% | ||||||||
CyberAgent Inc.(b) | 328,200 | 12,459,825 | ||||||
Dentsu Group Inc | 698,500 | 18,209,632 | ||||||
Hakuhodo DY Holdings Inc | 736,700 | 8,598,761 | ||||||
39,268,218 | ||||||||
Metals & Mining — 0.8% | ||||||||
Hitachi Metals Ltd. | 677,800 | 9,695,874 | ||||||
JFE Holdings Inc. | 1,558,750 | 14,479,836 | ||||||
Maruichi Steel Tube Ltd. | 189,700 | 4,607,741 | ||||||
Mitsubishi Materials Corp. | 352,500 | 8,058,824 | ||||||
Nippon Steel Corp. | 2,570,070 | 28,973,301 | ||||||
Sumitomo Metal Mining Co. Ltd. | 733,100 | 18,251,889 | ||||||
84,067,465 | ||||||||
Multiline Retail — 0.6% | ||||||||
Isetan Mitsukoshi Holdings Ltd. | 1,063,860 | 6,973,059 | ||||||
J Front Retailing Co. Ltd. | 727,000 | 7,730,673 | ||||||
Marui Group Co. Ltd. | 602,100 | 11,755,645 | ||||||
Pan Pacific International Holdings Corp. | 1,412,600 | 23,415,647 | ||||||
Ryohin Keikaku Co. Ltd. | 751,400 | 10,295,918 | ||||||
60,170,942 | ||||||||
Oil, Gas & Consumable Fuels — 0.8% | ||||||||
Idemitsu Kosan Co. Ltd. | 623,529 | 15,364,947 | ||||||
Inpex Corp. | 3,252,800 | 28,132,732 | ||||||
JXTG Holdings Inc | 9,771,495 | 39,316,079 | ||||||
82,813,758 | ||||||||
Paper & Forest Products — 0.1% | ||||||||
Oji Holdings Corp. | 2,715,200 | 12,963,686 | ||||||
Personal Products — 2.1% | ||||||||
Kao Corp. | 1,538,900 | 112,252,030 | ||||||
Kobayashi Pharmaceutical Co. Ltd.(b) | 163,000 | 11,862,513 | ||||||
Kose Corp. | 102,700 | 12,320,382 | ||||||
Pola Orbis Holdings Inc | 299,600 | 5,732,855 | ||||||
Shiseido Co. Ltd. | 1,269,400 | 75,529,683 | ||||||
217,697,463 | ||||||||
Pharmaceuticals — 6.7% | ||||||||
Astellas Pharma Inc | 6,022,050 | 94,854,336 | ||||||
Chugai Pharmaceutical Co. Ltd. | 712,700 | 77,404,909 | ||||||
Daiichi Sankyo Co. Ltd. | 1,805,169 | 110,286,596 | ||||||
Eisai Co. Ltd. | 810,200 | 59,947,214 | ||||||
Hisamitsu Pharmaceutical Co. Inc | 174,800 | 7,835,331 | ||||||
Kyowa Kirin Co. Ltd. | 774,800 | 18,460,446 | ||||||
Nippon Shinyaku Co. Ltd. | 149,600 | 11,081,482 | ||||||
Ono Pharmaceutical Co. Ltd. | 1,221,700 | 25,030,890 | ||||||
Otsuka Holdings Co. Ltd. | 1,233,100 | 46,642,080 |
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited)(continued) | iShares® MSCI Japan ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Santen Pharmaceutical Co. Ltd. | 1,143,800 | $ | 18,366,121 | |||||
Shionogi & Co. Ltd. | 856,500 | 46,412,112 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 505,000 | 7,308,256 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 103,500 | 6,419,274 | ||||||
Takeda Pharmaceutical Co. Ltd. | 4,787,900 | 167,031,639 | ||||||
697,080,686 | ||||||||
Professional Services — 1.5% | ||||||||
Persol Holdings Co. Ltd. | 574,800 | 7,614,974 | ||||||
Recruit Holdings Co. Ltd. | 4,331,300 | 150,901,826 | ||||||
158,516,800 | ||||||||
Real Estate Management & Development — 2.6% | ||||||||
Aeon Mall Co. Ltd. | 325,700 | 4,622,878 | ||||||
Daito Trust Construction Co. Ltd. | 224,000 | 22,791,452 | ||||||
Daiwa House Industry Co. Ltd. | 1,801,700 | 49,767,442 | ||||||
Hulic Co. Ltd. | 968,100 | 10,841,930 | ||||||
Mitsubishi Estate Co. Ltd. | 3,776,600 | 64,562,652 | ||||||
Mitsui Fudosan Co. Ltd. | 2,850,700 | 65,476,376 | ||||||
Nomura Real Estate Holdings Inc. | 401,500 | 8,665,387 | ||||||
Sumitomo Realty & Development Co. Ltd. | 1,069,600 | 33,437,085 | ||||||
Tokyu Fudosan Holdings Corp. | 1,952,900 | 12,329,531 | ||||||
272,494,733 | ||||||||
Road & Rail — 3.7% | ||||||||
Central Japan Railway Co. | 459,700 | 75,774,959 | ||||||
East Japan Railway Co. | 973,300 | 75,064,967 | ||||||
Hankyu Hanshin Holdings Inc. | 718,400 | 23,643,629 | ||||||
Keikyu Corp. | 701,500 | 10,652,733 | ||||||
Keio Corp. | 328,200 | 15,791,573 | ||||||
Keisei Electric Railway Co. Ltd. | 416,400 | 13,337,616 | ||||||
Kintetsu Group Holdings Co. Ltd. | 552,700 | 23,903,449 | ||||||
Kyushu Railway Co. | 508,700 | 15,303,681 | ||||||
Nagoya Railroad Co. Ltd. | 587,900 | 15,364,484 | ||||||
Nippon Express Co. Ltd. | 247,900 | 11,881,917 | ||||||
Odakyu Electric Railway Co. Ltd. | 944,100 | 18,240,434 | ||||||
Seibu Holdings Inc. | 633,700 | 8,965,153 | ||||||
Tobu Railway Co. Ltd. | 604,200 | 18,036,657 | ||||||
Tokyu Corp. | 1,592,000 | 24,441,218 | ||||||
West Japan Railway Co. | 519,100 | 36,661,603 | ||||||
387,064,073 | ||||||||
Semiconductors & Semiconductor Equipment — 1.9% | ||||||||
Advantest Corp. | 633,900 | 28,884,425 | ||||||
Disco Corp. | 82,500 | 16,734,807 | ||||||
Renesas Electronics Corp.(a) | 2,450,800 | 14,791,367 | ||||||
Rohm Co. Ltd. | 306,300 | 20,161,591 | ||||||
SUMCO Corp. | 791,200 | 12,036,891 | ||||||
Tokyo Electron Ltd. | 500,052 | 103,496,601 | ||||||
196,105,682 | ||||||||
Software — 0.3% | ||||||||
Oracle Corp. Japan | 120,900 | 9,459,936 | ||||||
Trend Micro Inc. | 405,800 | 20,202,531 | ||||||
29,662,467 | ||||||||
Specialty Retail — 1.7% | ||||||||
ABC-Mart Inc. | 101,100 | 5,773,661 | ||||||
Fast Retailing Co. Ltd. | 190,600 | 94,429,741 | ||||||
Hikari Tsushin Inc. | 65,400 | 12,423,363 | ||||||
Nitori Holdings Co. Ltd. | 254,300 | 35,281,134 | ||||||
Shimamura Co. Ltd. | 67,300 | 4,498,521 | ||||||
USS Co. Ltd. | 698,000 | 11,039,614 |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
Yamada Denki Co. Ltd. | 1,966,600 | $ | 9,462,434 | |||||
172,908,468 | ||||||||
Technology Hardware, Storage & Peripherals — 1.8% | ||||||||
Brother Industries Ltd. | 712,100 | 12,695,205 | ||||||
Canon Inc | 3,190,350 | 80,849,411 | ||||||
FUJIFILM Holdings Corp. | 1,143,400 | 55,937,717 | ||||||
Konica Minolta Inc | 1,411,400 | 7,667,737 | ||||||
Ricoh Co. Ltd. | 2,128,600 | 19,832,596 | ||||||
Seiko Epson Corp. | 889,000 | 12,593,445 | ||||||
189,576,111 | ||||||||
Tobacco — 0.7% | ||||||||
Japan Tobacco Inc. | 3,827,200 | 76,072,098 | ||||||
Trading Companies & Distributors — 3.9% | ||||||||
ITOCHU Corp. | 4,323,500 | 98,663,100 | ||||||
Marubeni Corp. | 4,968,600 | 33,018,055 | ||||||
Mitsubishi Corp. | 4,311,700 | 107,527,678 | ||||||
Mitsui & Co. Ltd. | 5,266,200 | 87,074,284 | ||||||
MonotaRO Co. Ltd. | 402,400 | 8,953,414 | ||||||
Sumitomo Corp. | 3,787,400 | 54,231,116 | ||||||
Toyota Tsusho Corp. | 685,300 | 20,743,564 | ||||||
410,211,211 | ||||||||
Transportation Infrastructure — 0.1% | ||||||||
Japan Airport Terminal Co. Ltd. | 166,100 | 6,498,326 | ||||||
Kamigumi Co. Ltd. | 336,800 | 6,472,780 | ||||||
12,971,106 | ||||||||
Wireless Telecommunication Services — 5.5% | ||||||||
KDDI Corp. | 5,639,200 | 159,872,745 | ||||||
NTT DOCOMO Inc | 4,243,900 | 115,181,173 | ||||||
Softbank Corp. | 5,333,100 | 69,837,331 | ||||||
SoftBank Group Corp. | 5,009,100 | 232,796,721 | ||||||
577,687,970 | ||||||||
Total Common Stocks — 99.5% | ||||||||
(Cost: $12,299,123,592) | 10,392,224,369 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e) | 16,347,768 | 16,359,212 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 5,531,000 | 5,531,000 | ||||||
21,890,212 | ||||||||
Total Short-Term Investments — 0.2% | ||||||||
(Cost: $21,881,280) | 21,890,212 | |||||||
Total Investments in Securities — 99.7% | ||||||||
(Cost: $12,321,004,872) | 10,414,114,581 | |||||||
Other Assets, Less Liabilities — 0.3% | 28,417,032 | |||||||
Net Assets — 100.0% | $ | 10,442,531,613 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited)(continued) | iShares® MSCI Japan ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 53,752,562 | (37,404,794 | ) | 16,347,768 | $ | 16,359,212 | $ | 139,183 | (b) | $ | 9,806 | $ | (3,311 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 5,212,000 | 319,000 | 5,531,000 | 5,531,000 | 56,897 | — | — | |||||||||||||||||||||
$ | 21,890,212 | $ | 196,080 | $ | 9,806 | $ | (3,311 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
TOPIX Index | 363 | 03/12/20 | $ | 50,463 | $ | (7,036,533 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 7,036,533 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 10,651,726 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (6,262,319 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 64,186,103 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited)(continued) | iShares® MSCI Japan ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 10,392,224,369 | $ | — | $ | — | $ | 10,392,224,369 | ||||||||
Money Market Funds | 21,890,212 | — | — | 21,890,212 | ||||||||||||
$ | 10,414,114,581 | $ | — | $ | — | $ | 10,414,114,581 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (7,036,533 | ) | $ | — | $ | — | $ | (7,036,533 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited) | iShares® MSCI Mexico ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.7% | ||||||||
Controladora Vuela Cia. de Aviacion SAB de CV, | ||||||||
Class A(a) | 3,798,500 | $ | 3,849,060 | |||||
Grupo Aeromexico SAB de CV(a) | 2,559,868 | 1,533,606 | ||||||
5,382,666 | ||||||||
Auto Components — 0.3% | ||||||||
Nemak SAB de CV(b) | 5,415,000 | 1,821,731 | ||||||
Banks — 12.2% | ||||||||
Banco del Bajio SA(b) | 3,994,530 | 6,194,634 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 11,371,861 | 61,258,064 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O | 11,950,392 | 12,749,338 | ||||||
Regional SAB de CV | 1,281,600 | 7,084,358 | ||||||
87,286,394 | ||||||||
Beverages — 12.5% | ||||||||
Arca Continental SAB de CV | 2,287,729 | 12,479,572 | ||||||
Coca-Cola Femsa SAB de CV | 1,380,843 | 7,601,559 | ||||||
Fomento Economico Mexicano SAB de CV | 8,635,610 | 69,450,432 | ||||||
89,531,563 | ||||||||
Building Products — 0.2% | ||||||||
Grupo Rotoplas SAB de CV(c) | 1,809,670 | 1,356,578 | ||||||
Capital Markets — 0.7% | ||||||||
Bolsa Mexicana de Valores SAB de CV | 2,534,187 | 5,322,734 | ||||||
Chemicals — 1.5% | ||||||||
Orbia Advance Corp. SAB de CV | 5,457,242 | 10,610,423 | ||||||
Construction Materials — 4.1% | ||||||||
Cemex SAB de CV, CPO, NVS | 75,817,629 | 24,281,250 | ||||||
Grupo Cementos de Chihuahua SAB de CV | 983,600 | 4,868,190 | ||||||
29,149,440 | ||||||||
Consumer Finance — 1.3% | ||||||||
Credito Real SAB de CV SOFOM ER | 1,961,274 | 2,079,516 | ||||||
Gentera SAB de CV | 5,912,706 | 5,641,958 | ||||||
Unifin Financiera SAB de CV | 1,121,548 | 1,770,999 | ||||||
9,492,473 | ||||||||
Diversified Telecommunication Services — 1.0% | ||||||||
Axtel SAB de CV, CPO(a) | 8,132,000 | 1,758,137 | ||||||
Telesites SAB de CV(a) | 7,650,646 | 5,731,270 | ||||||
7,489,407 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 6.1% | ||||||||
Concentradora Fibra Danhos SA de CV | 1,961,400 | 2,727,620 | ||||||
Fibra Uno Administracion SA de CV | 15,766,100 | 23,565,726 | ||||||
Macquarie Mexico Real Estate Management SA de CV(b) | 4,577,000 | 6,039,009 | ||||||
PLA Administradora Industrial S. de RL de CV | 4,472,100 | 6,695,782 | ||||||
Prologis Property Mexico SA de CV | 2,108,700 | 4,429,053 | ||||||
43,457,190 | ||||||||
Food & Staples Retailing — 9.9% | ||||||||
Grupo Comercial Chedraui SA de CV(c) | 2,279,700 | 2,916,920 | ||||||
La Comer SAB de CV(a)(c) | 3,075,855 | 3,626,422 | ||||||
Wal-Mart de Mexico SAB de CV | 22,993,533 | 64,114,516 | ||||||
70,657,858 | ||||||||
Food Products — 3.6% | ||||||||
Gruma SAB de CV, Series B | 1,101,520 | 10,519,707 | ||||||
Grupo Bimbo SAB de CV, Series A | 8,340,104 | 12,508,155 | ||||||
Grupo Herdez SAB de CV | 1,485,444 | 2,660,765 | ||||||
25,688,627 |
Security | Shares | Value | ||||||
Gas Utilities — 1.7% | ||||||||
Infraestructura Energetica Nova SAB de CV | 2,786,200 | $ | 12,050,334 | |||||
Hotels, Restaurants & Leisure — 1.1% | ||||||||
Alsea SAB de CV(a) | 3,039,566 | 6,129,340 | ||||||
Hoteles City Express SAB de CV(a) | 3,005,500 | 1,844,610 | ||||||
7,973,950 | ||||||||
Household Durables — 0.2% | ||||||||
Consorcio ARA SAB de CV | 7,610,219 | 1,372,388 | ||||||
Household Products — 2.1% | ||||||||
Kimberly-Clark de Mexico SAB de CV, Class A. | 7,886,954 | 14,848,421 | ||||||
Industrial Conglomerates — 2.3% | ||||||||
Alfa SAB de CV, Class A | 15,907,951 | 10,100,924 | ||||||
Grupo Carso SAB de CV, Series A1 | 2,461,633 | 6,718,462 | ||||||
16,819,386 | ||||||||
Insurance — 0.7% | ||||||||
Qualitas Controladora SAB de CV | 1,221,300 | 5,198,846 | ||||||
Media — 3.9% | ||||||||
Grupo Televisa SAB, CPO | 12,045,947 | 22,410,640 | ||||||
Megacable Holdings SAB de CV, CPO | 1,678,900 | 5,588,842 | ||||||
27,999,482 | ||||||||
Metals & Mining — 5.3% | ||||||||
Grupo Mexico SAB de CV, Series B | 13,185,586 | 30,918,339 | ||||||
Industrias Penoles SAB de CV | 760,498 | 6,816,496 | ||||||
37,734,835 | ||||||||
Mortgage Real Estate Investment — 0.4% | ||||||||
Concentradora Hipotecaria SAPI de CV(c) | 2,773,200 | 2,576,170 | ||||||
Multiline Retail — 0.7% | ||||||||
El Puerto de Liverpool SAB de CV, Series C1, NVS(c) | 1,085,865 | 5,035,904 | ||||||
Pharmaceuticals — 0.7% | ||||||||
Genomma Lab Internacional SAB de CV, Class B(a) | 4,977,593 | 5,008,646 | ||||||
Real Estate Management & Development — 1.0% | ||||||||
Corp Inmobiliaria Vesta SAB de CV | 3,393,649 | 5,353,656 | ||||||
Grupo GICSA SAB de CV(a) | 5,481,766 | 1,791,581 | ||||||
7,145,237 | ||||||||
Road & Rail — 0.2% | ||||||||
Grupo Traxion SAB de CV(a)(b) | 2,238,500 | 1,723,271 | ||||||
Transportation Infrastructure — 8.3% | ||||||||
Grupo Aeroportuario del Centro Norte SAB de CV | 1,691,492 | 11,045,345 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Series B | 1,819,149 | 19,633,742 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 1,052,145 | 17,267,264 | ||||||
Promotora y Operadora de Infraestructura SAB de CV | 1,192,825 | 11,576,666 | ||||||
59,523,017 | ||||||||
Wireless Telecommunication Services — 16.9% | ||||||||
America Movil SAB de CV, Series L, NVS | 154,640,718 | 121,234,762 | ||||||
Total Common Stocks — 99.6% | ||||||||
(Cost: $1,095,809,679) | 713,491,733 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 1,584,544 | 1,585,653 |
S c h e d u l e o f I n v e s t m e n t s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Mexico ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 194,000 | $ | 194,000 | |||||
1,779,653 | ||||||||
Total Short-Term Investments — 0.2% | ||||||||
(Cost: $1,779,324) | 1,779,653 | |||||||
Total Investments in Securities — 99.8% | ||||||||
(Cost: $1,097,589,003) | 715,271,386 | |||||||
Other Assets, Less Liabilities — 0.2% | 1,383,888 | |||||||
Net Assets — 100.0% | $ | 716,655,274 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | All or a portion of this security is on loan. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Shares | Shares | Change in Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 3,758,756 | (2,174,212 | ) | 1,584,544 | $ | 1,585,653 | $ | 6,259 | (b) | $ | (35 | ) | $ | 343 | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 371,000 | (177,000 | ) | 194,000 | 194,000 | 6,752 | — | — | ||||||||||||||||||||
$ | 1,779,653 | $ | 13,011 | $ | (35 | ) | $ | 343 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. | |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
MEX BOLSA Index | 45 | 03/20/20 | $ | 946 | $ | (29,659 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 29,659 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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). |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Mexico ETF |
February 29, 2020 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 13,079 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (113,315 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 2,020,133 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 713,491,733 | $ | — | $ | — | $ | 713,491,733 | ||||||||
Money Market Funds | 1,779,653 | — | — | 1,779,653 | ||||||||||||
$ | 715,271,386 | $ | — | $ | — | $ | 715,271,386 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts. | $ | (29,659 | ) | $ | — | $ | — | $ | (29,659 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s |
Schedule of Investments (unaudited) | iShares® MSCI South Korea ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.4% | ||||||||
Korea Aerospace Industries Ltd.(a) | 688,674 | $ | 14,544,659 | |||||
Air Freight & Logistics — 0.4% | ||||||||
Hyundai Glovis Co. Ltd. | 167,429 | 16,956,580 | ||||||
Airlines — 0.3% | ||||||||
Korean Air Lines Co. Ltd.(a) | 581,464 | 10,676,531 | ||||||
Auto Components — 2.7% | ||||||||
Hankook Tire & Technology Co. Ltd. | 713,265 | 14,975,922 | ||||||
Hanon Systems | 1,803,397 | 15,665,573 | ||||||
Hyundai Mobis Co. Ltd. | 471,390 | 81,508,357 | ||||||
112,149,852 | ||||||||
Automobiles — 3.8% | ||||||||
Hyundai Motor Co. | 1,054,170 | 99,818,485 | ||||||
Kia Motors Corp. | 1,880,754 | 56,136,132 | ||||||
155,954,617 | ||||||||
Banks — 7.1% | ||||||||
BNK Financial Group Inc. | 2,776,571 | 14,105,758 | ||||||
Hana Financial Group Inc. | 2,101,957 | 54,344,545 | ||||||
Industrial Bank of Korea(a) | 2,325,489 | 18,209,469 | ||||||
KB Financial Group Inc. | 2,715,232 | 86,967,909 | ||||||
Shinhan Financial Group Co. Ltd. | 3,215,867 | 85,526,969 | ||||||
Woori Financial Group Inc. | 4,101,450 | 32,453,631 | ||||||
291,608,281 | ||||||||
Biotechnology — 2.8% | ||||||||
Celltrion Inc.(a)(b) | 642,079 | 89,875,200 | ||||||
Helixmith Co. Ltd.(a)(b) | 225,540 | 11,532,346 | ||||||
Medy-Tox Inc. | 48,550 | 11,732,750 | ||||||
113,140,296 | ||||||||
Capital Markets — 1.9% | ||||||||
Korea Investment Holdings Co. Ltd.(a) | 363,304 | 18,785,913 | ||||||
Meritz Securities Co. Ltd. | 3,872,441 | 11,080,060 | ||||||
Mirae Asset Daewoo Co. Ltd.(a) | 3,486,749 | 18,201,720 | ||||||
NH Investment & Securities Co. Ltd.(a) | 1,512,334 | 12,427,413 | ||||||
Samsung Securities Co. Ltd. | 588,826 | 16,047,872 | ||||||
76,542,978 | ||||||||
Chemicals — 3.9% | ||||||||
Hanwha Solutions Corp. | 1,032,318 | 15,172,397 | ||||||
KCC Corp. | 63,700 | 8,732,853 | ||||||
Kumho Petrochemical Co. Ltd. | 218,498 | 10,668,532 | ||||||
LG Chem Ltd. | 316,659 | 95,949,372 | ||||||
Lotte Chemical Corp. | 141,317 | 21,817,157 | ||||||
OCI Co. Ltd.(a) | 232,595 | 9,432,115 | ||||||
161,772,426 | ||||||||
Commercial Services & Supplies — 0.3% | ||||||||
S-1 Corp. | 186,943 | 12,652,709 | ||||||
Communications Equipment — 0.3% | ||||||||
KMW Co. Ltd.(a)(b) | 283,222 | 11,345,204 | ||||||
Construction & Engineering — 1.9% | ||||||||
Daelim Industrial Co. Ltd.(a) | 261,608 | 15,616,780 | ||||||
Daewoo Engineering & Construction Co. Ltd.(a) | 2,730,821 | 9,106,484 | ||||||
GS Engineering & Construction Corp. | 617,433 | 13,345,094 | ||||||
HDC Hyundai Development Co-Engineering & | ||||||||
Construction, Class E(b) | 397,191 | 5,903,086 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 670,408 | 19,154,514 |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
Samsung Engineering Co. Ltd.(a) | 1,423,422 | $ | 16,525,525 | |||||
79,651,483 | ||||||||
Construction Materials — 0.3% | ||||||||
POSCO Chemical Co. Ltd.(b) | 281,970 | 12,746,112 | ||||||
Consumer Finance — 0.3% | ||||||||
Samsung Card Co. Ltd. | 373,917 | 10,375,466 | ||||||
Diversified Telecommunication Services — 0.5% | ||||||||
LG Uplus Corp. | 1,825,887 | 19,844,964 | ||||||
Electric Utilities — 0.8% | ||||||||
Korea Electric Power Corp.(a) | 1,886,283 | 33,081,785 | ||||||
Electronic Equipment, Instruments & Components — 4.2% | ||||||||
LG Display Co. Ltd.(a)(b) | 1,901,004 | 21,287,488 | ||||||
LG Innotek Co. Ltd. | 139,349 | 14,915,908 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 413,622 | 42,911,792 | ||||||
Samsung SDI Co. Ltd. | 383,381 | 93,122,598 | ||||||
172,237,786 | ||||||||
Entertainment — 2.3% | ||||||||
NCSoft Corp. | 125,581 | 67,107,508 | ||||||
Netmarble Corp.(a)(b)(c) | 235,337 | 17,168,265 | ||||||
Pearl Abyss Corp.(a)(b) | 79,112 | 11,542,731 | ||||||
95,818,504 | ||||||||
Food & Staples Retailing — 0.9% | ||||||||
BGF retail Co. Ltd. | 90,152 | 11,245,803 | ||||||
E-MART Inc. | 194,943 | 16,853,862 | ||||||
GS Retail Co. Ltd. | 348,362 | 10,139,643 | ||||||
38,239,308 | ||||||||
Food Products — 1.0% | ||||||||
CJ CheilJedang Corp. | 77,947 | 15,659,998 | ||||||
Orion Corp. | 213,878 | 16,606,583 | ||||||
Ottogi Corp. | 21,056 | 8,616,577 | ||||||
40,883,158 | ||||||||
Gas Utilities — 0.2% | ||||||||
Korea Gas Corp. | 383,221 | 8,866,620 | ||||||
Health Care Providers & Services — 0.6% | ||||||||
Celltrion Healthcare Co. Ltd.(a) | 456,048 | 24,332,573 | ||||||
Hotels, Restaurants & Leisure — 0.5% | ||||||||
Kangwon Land Inc.(a) | 1,005,876 | 18,883,469 | ||||||
Household Durables — 1.5% | ||||||||
Coway Co. Ltd. | 417,744 | 23,699,104 | ||||||
LG Electronics Inc. | 770,497 | 38,318,665 | ||||||
62,017,769 | ||||||||
Industrial Conglomerates — 3.9% | ||||||||
CJ Corp. | 165,230 | 10,951,844 | ||||||
Hanwha Corp. | 565,475 | 9,335,343 | ||||||
LG Corp. | 692,733 | 38,501,011 | ||||||
Lotte Corp. | 372,022 | 8,898,509 | ||||||
Samsung C&T Corp. | 607,616 | 52,781,793 | ||||||
SK Holdings Co. Ltd. | 252,869 | 39,975,997 | ||||||
160,444,497 | ||||||||
Insurance — 2.4% | ||||||||
DB Insurance Co. Ltd. | 473,580 | 16,884,326 | ||||||
Hanwha Life Insurance Co. Ltd. | 5,243,638 | 7,123,922 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 706,418 | 13,145,366 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 227,811 | 37,140,039 |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI South Korea ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
Samsung Life Insurance Co. Ltd. | 544,246 | $ | 26,215,225 | |||||
100,508,878 | ||||||||
Interactive Media & Services — 4.6% | ||||||||
Kakao Corp. | 371,528 | 52,616,563 | ||||||
NAVER Corp. | 958,650 | 137,344,669 | ||||||
189,961,232 | ||||||||
Internet & Direct Marketing Retail — 0.3% | ||||||||
CJ ENM Co. Ltd. | 113,624 | 11,769,369 | ||||||
IT Services — 0.8% | ||||||||
Samsung SDS Co. Ltd. | 254,402 | 34,876,849 | ||||||
Leisure Products — 0.7% | ||||||||
HLB Inc.(a)(b) | 355,011 | 28,207,955 | ||||||
Life Sciences Tools & Services — 1.1% | ||||||||
Samsung Biologics Co. Ltd.(a)(c) | 121,377 | 46,322,140 | ||||||
Machinery — 2.1% | ||||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(a) | 511,683 | 9,332,053 | ||||||
Doosan Bobcat Inc. | 545,542 | 12,757,013 | ||||||
Hyundai Heavy Industries Holdings Co. Ltd. | 85,094 | 18,952,595 | ||||||
Korea Shipbuilding & Offshore Engineering Co. Ltd.(a) | 305,370 | 26,149,428 | ||||||
Samsung Heavy Industries Co. Ltd.(a) | 3,818,885 | 18,331,906 | ||||||
85,522,995 | ||||||||
Marine — 0.3% | ||||||||
Pan Ocean Co. Ltd.(a) | 3,429,114 | 10,545,690 | ||||||
Media — 0.3% | ||||||||
Cheil Worldwide Inc. | 751,363 | 11,971,078 | ||||||
Metals & Mining — 3.0% | ||||||||
Hyundai Steel Co. | 744,836 | 14,626,874 | ||||||
Korea Zinc Co. Ltd.(a) | 69,373 | 23,676,499 | ||||||
POSCo | 533,344 | 85,853,234 | ||||||
124,156,607 | ||||||||
Multiline Retail — 0.8% | ||||||||
Hyundai Department Store Co. Ltd. | 175,838 | 10,265,059 | ||||||
Lotte Shopping Co. Ltd. | 132,199 | 10,362,573 | ||||||
Shinsegae Inc. | 70,470 | 13,693,635 | ||||||
34,321,267 | ||||||||
Oil, Gas & Consumable Fuels — 1.8% | ||||||||
GS Holdings Corp. | 472,969 | 16,064,200 | ||||||
SK Innovation Co. Ltd. | 416,714 | 38,772,073 | ||||||
S-Oil Corp. | 372,748 | 20,440,524 | ||||||
75,276,797 | ||||||||
Personal Products — 2.7% | ||||||||
Amorepacific Corp.(a) | 240,280 | 31,852,680 | ||||||
AMOREPACIFIC Group(a) | 278,893 | 14,237,436 | ||||||
LG Household & Health Care Ltd. | 65,221 | 65,570,063 | ||||||
111,660,179 | ||||||||
Pharmaceuticals — 0.7% | ||||||||
Hanmi Pharm Co. Ltd.(a) | 65,277 | 14,028,240 | ||||||
Yuhan Corp. | 90,625 | 15,968,505 | ||||||
29,996,745 | ||||||||
Road & Rail — 0.3% | ||||||||
CJ Logistics Corp.(a) | 106,868 | 11,747,121 | ||||||
Semiconductors & Semiconductor Equipment — 6.6% | ||||||||
SK Hynix Inc. | 3,723,342 | 269,478,602 |
Security | Shares | Value | ||||||
Specialty Retail — 0.4% | ||||||||
Hotel Shilla Co. Ltd. | 273,638 | $ | 18,092,327 | |||||
Technology Hardware, Storage & Peripherals — 22.3% | ||||||||
Samsung Electronics Co. Ltd. | 20,494,574 | 914,619,935 | ||||||
Textiles, Apparel & Luxury Goods — 0.4% | ||||||||
Fila Holdings Corp.(b) | 469,553 | 14,846,303 | ||||||
Tobacco — 1.4% | ||||||||
KT&G Corp. | 814,390 | 56,796,075 | ||||||
Trading Companies & Distributors — 0.2% | ||||||||
Posco International Corp. | 697,979 | 8,591,837 | ||||||
Wireless Telecommunication Services — 0.7% | ||||||||
SK Telecom Co. Ltd. | 157,913 | 27,629,899 | ||||||
Total Common Stocks — 96.7% | ||||||||
(Cost: $2,676,380,428) | 3,971,667,507 | |||||||
Preferred Stocks | ||||||||
Automobiles — 0.8% | ||||||||
Hyundai Motor Co. | ||||||||
Preference Shares, NVS | 238,015 | 12,993,326 | ||||||
Series 2, Preference Shares, NVS | 312,378 | 19,264,810 | ||||||
32,258,136 | ||||||||
Chemicals — 0.3% | ||||||||
LG Chem Ltd., Preference Shares, NVS | 82,300 | 12,671,964 | ||||||
Personal Products — 0.5% | ||||||||
Amorepacific Corp., Preference Shares, NVS | 134,160 | 8,108,147 | ||||||
LG Household & Health Care Ltd., Preference | ||||||||
Shares, NVS | 21,149 | 12,764,279 | ||||||
20,872,426 | ||||||||
Technology Hardware, Storage & Peripherals — 0.1% | ||||||||
Samsung Electronics Co. Ltd., Preference | ||||||||
Shares, NVS | 78,045 | 2,927,089 | ||||||
Total Preferred Stocks — 1.7% | ||||||||
(Cost: $61,031,806) | 68,729,615 | |||||||
Rights | ||||||||
Construction & Engineering — 0.0% | ||||||||
HDC Hyundai Development Co., (Expires 06/03/20)(a) | 184,104 | 0 | (d) | |||||
Total Rights — 0.0% | ||||||||
(Cost: $0) | 0 | (d) | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.7% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency | ||||||||
Shares, 1.74%(e)(f)(g) | 102,750,921 | 102,822,847 |
S c h e d u l e o f I n v e s t m e n t s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI South Korea ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f) | 7,795,000 | $ | 7,795,000 | |||||
110,617,847 | ||||||||
Total Short-Term Investments — 2.7% | ||||||||
(Cost: $110,545,921) | 110,617,847 | |||||||
Total Investments in Securities — 101.1% | ||||||||
(Cost: $2,847,958,155) | 4,151,014,969 | |||||||
Other Assets, Less Liabilities — (1.1)% | (44,012,217 | ) | ||||||
Net Assets — 100.0% | $ | 4,107,002,752 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Rounds to less than $1. |
(e) | Affiliate of the Fund. |
(f) | Annualized 7-day yield as of period-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 202,603,206 | (99,852,285 | ) | 102,750,921 | $ | 102,822,847 | $ | 5,809,056 | (b) | $ | (3,648 | ) | $ | 20,079 | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 6,894,000 | 901,000 | 7,795,000 | 7,795,000 | 68,525 | — | — | |||||||||||||||||||||
$ | 110,617,847 | $ | 5,877,581 | $ | (3,648 | ) | $ | 20,079 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. | |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
KOSPI 200 Index | 1,122 | 03/12/20 | $ | 61,862 | $ | (5,966,209 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 5,966,209 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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). |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI South Korea ETF |
February 29, 2020 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 927,042 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (5,178,007 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 29,137,707 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 3,971,667,507 | $ | — | $ | — | $ | 3,971,667,507 | ||||||||
Preferred Stocks | 68,729,615 | — | — | 68,729,615 | ||||||||||||
Rights | — | 0 | (a) | — | 0 | (a) | ||||||||||
Money Market Funds | 110,617,847 | — | — | 110,617,847 | ||||||||||||
$ | 4,151,014,969 | $ | 0 | (a) | $ | — | $ | 4,151,014,969 | ||||||||
Derivative financial instruments(b) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (5,966,209 | ) | $ | — | $ | — | $ | (5,966,209 | ) |
(a) Rounds to less than $1.
(b) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares | ||||||||||||||||
MSCI Australia | iShares | iShares | iShares | |||||||||||||
ETF | MSCI Canada ETF | MSCI Japan ETF | MSCI Mexico ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 1,287,888,085 | $ | 2,393,044,565 | $ | 10,392,224,369 | $ | 713,491,733 | ||||||||
Affiliated(c) | 581,114 | 9,371,041 | 21,890,212 | 1,779,653 | ||||||||||||
Cash | 448 | 614 | 933 | 452 | ||||||||||||
Foreign currency, at value(d) | 4,970,502 | 9,334,284 | 28,505,916 | 2,153,411 | ||||||||||||
Foreign currency collateral pledged: | ||||||||||||||||
Futures contracts(e) | 644,750 | 496,145 | 1,380,244 | 46,473 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 2,412,846 | 75,551,359 | 22,086,416 | 8,682,368 | ||||||||||||
Securities lending income — Affiliated | 493 | 218,048 | 16,427 | 486 | ||||||||||||
Capital shares sold | — | — | — | 981,930 | ||||||||||||
Dividends | 8,302,433 | 4,374,709 | 25,324,318 | 6,465 | ||||||||||||
Total assets | 1,304,800,671 | 2,492,390,765 | 10,491,428,835 | 727,142,971 | ||||||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 8,780 | 8,154,067 | 16,305,696 | 1,585,416 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 4,565,818 | 82,122,742 | 23,165,722 | 8,240,397 | ||||||||||||
Variation margin on futures contracts | 566,584 | 352,587 | 3,252,498 | 1,624 | ||||||||||||
Capital shares redeemed | — | 309,921 | 1,125,336 | 349,415 | ||||||||||||
Investment advisory fees | 605,592 | 1,089,116 | 5,047,970 | 310,845 | ||||||||||||
Total liabilities | 5,746,774 | 92,028,433 | 48,897,222 | 10,487,697 | ||||||||||||
NET ASSETS | $ | 1,299,053,897 | $ | 2,400,362,332 | $ | 10,442,531,613 | $ | 716,655,274 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 1,850,579,226 | $ | 3,438,354,140 | $ | 13,229,578,735 | $ | 1,393,267,260 | ||||||||
Accumulated loss | (551,525,329 | ) | (1,037,991,808 | ) | (2,787,047,122 | ) | (676,611,986 | ) | ||||||||
NET ASSETS | $ | 1,299,053,897 | $ | 2,400,362,332 | $ | 10,442,531,613 | $ | 716,655,274 | ||||||||
Shares outstanding | 64,400,000 | 87,100,000 | 195,150,000 | 17,400,000 | ||||||||||||
Net asset value | $ | 20.17 | $ | 27.56 | $ | 53.51 | $ | 41.19 | ||||||||
Shares authorized | 627.8 million | 340.2 million | 2.5246 billion | 255 million | ||||||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||||
(a) Securities loaned, at value | $ | 8,275 | $ | 7,519,650 | $ | 15,634,742 | $ | 1,379,864 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 1,633,601,912 | $ | 2,812,777,858 | $ | 12,299,123,592 | $ | 1,095,809,679 | ||||||||
(c) Investments, at cost — Affiliated | $ | 581,112 | $ | 9,366,094 | $ | 21,881,280 | $ | 1,779,324 | ||||||||
(d) Foreign currency, at cost | $ | 5,110,843 | $ | 9,436,576 | $ | 27,853,919 | $ | 2,238,790 | ||||||||
(e) Foreign currency collateral pledged, at cost | $ | 675,785 | $ | 507,039 | $ | 1,362,083 | $ | 48,132 |
See notes to financial statements. |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares | ||||
MSCI South Korea | ||||
ETF | ||||
ASSETS | ||||
Investments in securities, at value (including securities on loan)(a): | ||||
Unaffiliated(b) | $ | 4,040,397,122 | ||
Affiliated(c) | 110,617,847 | |||
Cash | 700 | |||
Foreign currency, at value(d) | 1,576 | |||
Foreign currency collateral pledged: | ||||
Futures contracts(e) | 9,266,771 | |||
Receivables: | ||||
Investments sold | 82,680,949 | |||
Securities lending income — Affiliated | 878,375 | |||
Dividends | 56,324,831 | |||
Total assets | 4,300,168,171 | |||
LIABILITIES | ||||
Collateral on securities loaned, at value | 102,747,534 | |||
Payables: | ||||
Investments purchased | 82,352,950 | |||
Variation margin on futures contracts | 5,963,794 | |||
Investment advisory fees | 2,072,764 | |||
Foreign taxes | 28,377 | |||
Total liabilities | 193,165,419 | |||
NET ASSETS | $ | 4,107,002,752 | ||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 3,889,762,383 | ||
Accumulated earnings | 217,240,369 | |||
NET ASSETS | $ | 4,107,002,752 | ||
Shares outstanding | 76,350,000 | |||
Net asset value | $ | 53.79 | ||
Shares authorized | 200 million | |||
Par value | $ | 0.001 | ||
(a) Securities loaned, at value | $ | 97,567,315 | ||
(b) Investments, at cost — Unaffiliated | $ | 2,737,412,234 | ||
(c) Investments, at cost — Affiliated | $ | 110,545,921 | ||
(d) Foreign currency, at cost | $ | 1,576 | ||
(e) Foreign currency collateral pledged, at cost | $ | 9,962,782 |
See notes to financial statements. |
F i n a n c i a l S t a t e m e n t s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | iShares | iShares | iShares | |||||||||||||
MSCI | MSCI | MSCI Japan | MSCI MexiCo | |||||||||||||
Australia ETF | Canada ETF | ETF | ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated. | $ | 31,077,959 | $ | 42,926,337 | $ | 142,018,002 | $ | 8,134,060 | ||||||||
Dividends — Affiliated | 8,844 | 12,619 | 56,897 | 6,752 | ||||||||||||
Interest — Unaffiliated | 208 | 2,465 | — | 4,616 | ||||||||||||
Securities lending income — Affiliated — net | 1,441 | 1,181,192 | 139,183 | 6,259 | ||||||||||||
Foreign taxes withheld | (580,258 | ) | (6,431,987 | ) | (14,197,842 | ) | (535,200 | ) | ||||||||
Total investment income | 30,508,194 | 37,690,626 | 128,016,240 | 7,616,487 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 3,927,183 | 6,879,065 | 32,667,310 | 2,062,094 | ||||||||||||
Total expenses | 3,927,183 | 6,879,065 | 32,667,310 | 2,062,094 | ||||||||||||
Net investment income | 26,581,011 | 30,811,561 | 95,348,930 | 5,554,393 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (16,115,062 | ) | (108,840,900 | ) | (64,484,977 | ) | (30,627,167 | ) | ||||||||
Investments — Affiliated | 332 | 8,941 | 9,806 | (35 | ) | |||||||||||
In-kind redemptions — Unaffiliated | 53,089,385 | 90,048,664 | 326,422,258 | 26,844,750 | ||||||||||||
Futures contracts | 454,800 | 84,131 | 10,651,726 | 13,079 | ||||||||||||
Foreign currency transactions | (140,949 | ) | 83,839 | (2,019,721 | ) | (43,768 | ) | |||||||||
Net realized gain (loss) | 37,288,506 | (18,615,325 | ) | 270,579,092 | (3,813,141 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (124,885,416 | ) | (22,673,780 | ) | (279,077,314 | ) | 20,655,290 | |||||||||
Investments — Affiliated | 2 | (6,873 | ) | (3,311 | ) | 343 | ||||||||||
Futures contracts | (937,733 | ) | (400,325 | ) | (6,262,319 | ) | (113,315 | ) | ||||||||
Foreign currency translations | (348,277 | ) | (158,373 | ) | 816,867 | (85,535 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (126,171,424 | ) | (23,239,351 | ) | (284,526,077 | ) | 20,456,783 | |||||||||
Net realized and unrealized gain (loss) | (88,882,918 | ) | (41,854,676 | ) | (13,946,985 | ) | 16,643,642 | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (62,301,907 | ) | $ | (11,043,115 | ) | $ | 81,401,945 | $ | 22,198,035 |
See notes to financial statements. |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares | ||||
MSCI South | ||||
Korea ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Unaffiliated | $ | 81,238,715 | ||
Dividends — Affiliated | 68,525 | |||
Interest — Unaffiliated | 557 | |||
Securities lending income — Affiliated — net | 5,809,056 | |||
Foreign taxes withheld | (12,167,567 | ) | ||
Other foreign taxes | (7,994 | ) | ||
Total investment income | 74,941,292 | |||
EXPENSES | ||||
Investment advisory fees | 12,606,844 | |||
Total expenses | 12,606,844 | |||
Net investment income | 62,334,448 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated | (35,724,739 | ) | ||
Investments — Affiliated | (3,648 | ) | ||
Futures contracts | 927,042 | |||
Foreign currency transactions | (106,804 | ) | ||
Net realized loss | (34,908,149 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | 76,029,656 | |||
Investments — Affiliated | 20,079 | |||
Futures contracts | (5,178,007 | ) | ||
Foreign currency translations | (2,592,950 | ) | ||
Net change in unrealized appreciation (depreciation) | 68,278,778 | |||
Net realized and unrealized gain | 33,370,629 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. | $ | 95,705,077 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S
Statements of Changes in Net Assets
iShares | iShares | |||||||||||||||
MSCI Australia ETF | MSCI Canada ETF | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 26,581,011 | $ | 59,623,655 | $ | 30,811,561 | $ | 60,051,016 | ||||||||
Net realized gain (loss) | 37,288,506 | (34,512,791 | ) | (18,615,325 | ) | (103,704,795 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (126,171,424 | ) | (9,995,015 | ) | (23,239,351 | ) | 18,680,770 | |||||||||
Net increase (decrease) in net assets resulting from operations | (62,301,907 | ) | 15,115,849 | (11,043,115 | ) | (24,973,009 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (35,038,080 | ) | (71,965,308 | ) | (37,421,735 | ) | (63,960,878 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (3,196,318 | ) | 93,669,497 | (169,759,150 | ) | (287,106,743 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (100,536,305 | ) | 36,820,038 | (218,224,000 | ) | (376,040,630 | ) | |||||||||
Beginning of period | 1,399,590,202 | 1,362,770,164 | 2,618,586,332 | 2,994,626,962 | ||||||||||||
End of period | $ | 1,299,053,897 | $ | 1,399,590,202 | $ | 2,400,362,332 | $ | 2,618,586,332 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
MSCI Japan ETF | MSCI Mexico ETF | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 95,348,930 | $ | 247,265,802 | $ | 5,554,393 | $ | 23,960,370 | ||||||||
Net realized gain (loss) | 270,579,092 | 409,682,495 | (3,813,141 | ) | (100,111,090 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (284,526,077 | ) | (1,725,742,453 | ) | 20,456,783 | (62,853,146 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 81,401,945 | (1,068,794,156 | ) | 22,198,035 | (139,003,866 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (169,474,596 | ) | (229,873,912 | ) | (8,809,713 | ) | (25,697,670 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (1,639,569,977 | ) | (3,504,195,955 | ) | 77,023,725 | (377,985,490 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (1,727,642,628 | ) | (4,802,864,023 | ) | 90,412,047 | (542,687,026 | ) | |||||||||
Beginning of period | 12,170,174,241 | 16,973,038,264 | 626,243,227 | 1,168,930,253 | ||||||||||||
End of period | $ | 10,442,531,613 | $ | 12,170,174,241 | $ | 716,655,274 | $ | 626,243,227 |
(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
Statements of Changes in Net Assets (continued)
iShares | ||||||||
MSCI South Korea ETF | ||||||||
Six Months Ended | ||||||||
02/29/20 | Year Ended | |||||||
(unaudited) | 08/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 62,334,448 | $ | 69,657,107 | ||||
Net realized loss | (34,908,149 | ) | (154,004,207 | ) | ||||
Net change in unrealized appreciation (depreciation) | 68,278,778 | (823,249,004 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 95,705,077 | (907,596,104 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (94,999,174 | ) | (52,766,055 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 257,732,666 | 902,035,428 | ||||||
NET ASSETS | ||||||||
Total increase (decrease) in net assets | 258,438,569 | (58,326,731 | ) | |||||
Beginning of period | 3,848,564,183 | 3,906,890,914 | ||||||
End of period | $ | 4,107,002,752 | $ | 3,848,564,183 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n 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
(For a share outstanding throughout each period)
iShares MSCI Australia ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.67 | $ | 22.56 | $ | 22.58 | $ | 20.30 | $ | 18.66 | $ | 27.15 | ||||||||||||
Net investment income(a) | 0.38 | 1.00 | 0.90 | 0.84 | 0.84 | 1.23 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.42 | ) | (0.70 | ) | 0.07 | 2.45 | 1.59 | (8.49 | ) | |||||||||||||||
Net increase (decrease) from investment operations | (1.04 | ) | 0.30 | 0.97 | 3.29 | 2.43 | (7.26 | ) | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.46 | ) | (1.19 | ) | (0.99 | ) | (1.01 | ) | (0.79 | ) | (1.23 | ) | ||||||||||||
Total distributions | (0.46 | ) | (1.19 | ) | (0.99 | ) | (1.01 | ) | (0.79 | ) | (1.23 | ) | ||||||||||||
Net asset value, end of period | $ | 20.17 | $ | 21.67 | $ | 22.56 | $ | 22.58 | $ | 20.30 | $ | 18.66 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (5.01 | )%(d) | 1.75 | % | 4.43 | % | 16.70 | % | 13.36 | % | (27.31 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.50 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 3.38 | %(e) | 4.68 | % | 3.95 | % | 3.90 | % | 4.41 | % | 5.37 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,299,054 | $ | 1,399,590 | $ | 1,362,770 | $ | 1,765,912 | $ | 1,668,702 | $ | 1,228,063 | ||||||||||||
Portfolio turnover rate(f) | 3 | %(d) | 9 | % | 3 | % | 4 | % | 7 | % | 9 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Canada ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 28.22 | $ | 28.79 | $ | 27.83 | $ | 25.33 | $ | 24.02 | $ | 32.93 | ||||||||||||
Net investment income(a) | 0.33 | 0.62 | 0.58 | 0.51 | 0.51 | 0.54 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.60 | ) | (0.53 | ) | 0.97 | 2.47 | 1.29 | (8.85 | ) | |||||||||||||||
Net increase (decrease) from investment operations | (0.27 | ) | 0.09 | 1.55 | 2.98 | 1.80 | (8.31 | ) | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.39 | ) | (0.66 | ) | (0.59 | ) | (0.48 | ) | (0.49 | ) | (0.60 | ) | ||||||||||||
Total distributions | (0.39 | ) | (0.66 | ) | (0.59 | ) | (0.48 | ) | (0.49 | ) | (0.60 | ) | ||||||||||||
Net asset value, end of period | $ | 27.56 | $ | 28.22 | $ | 28.79 | $ | 27.83 | $ | 25.33 | $ | 24.02 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.04 | )%(d) | 0.56 | % | 5.61 | % | 11.88 | % | 7.73 | % | (25.48 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 2.24 | %(e) | 2.26 | % | 2.01 | % | 1.93 | % | 2.18 | % | 1.92 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,400,362 | $ | 2,618,586 | $ | 2,994,627 | $ | 3,127,920 | $ | 3,097,794 | $ | 1,931,454 | ||||||||||||
Portfolio turnover rate(f) | 6 | %(d) | 6 | % | 3 | % | 6 | % | 4 | % | 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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Japan ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | (a) | 08/31/16 | (a) | 08/31/15 | (a) | ||||||||||||||||
Net asset value, beginning of period | $ | 54.05 | $ | 58.45 | $ | 54.57 | $ | 49.05 | $ | 48.61 | $ | 47.32 | ||||||||||||
Net investment income(b) | 0.42 | 0.92 | 0.87 | 0.49 | 0.72 | 0.60 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (0.24 | ) | (4.43 | ) | 3.87 | 5.96 | 0.44 | 1.22 | ||||||||||||||||
Net increase (decrease) from investment operations | 0.18 | (3.51 | ) | 4.74 | 6.45 | 1.16 | 1.82 | |||||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.72 | ) | (0.89 | ) | (0.86 | ) | (0.93 | ) | (0.72 | ) | (0.53 | ) | ||||||||||||
Total distributions | (0.72 | ) | (0.89 | ) | (0.86 | ) | (0.93 | ) | (0.72 | ) | (0.53 | ) | ||||||||||||
Net asset value, end of period | $ | 53.51 | $ | 54.05 | $ | 58.45 | $ | 54.57 | $ | 49.05 | $ | 48.61 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.19 | %(e) | (5.96 | )% | 8.67 | % | 13.31 | % | 2.44 | % | 3.84 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(f) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 1.46 | %(f) | 1.68 | % | 1.46 | % | 1.45 | % | 1.53 | % | 1.20 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 10,442,532 | $ | 12,170,174 | $ | 16,973,038 | $ | 16,017,689 | $ | 14,015,180 | $ | 19,147,802 | ||||||||||||
Portfolio turnover rate(g) | 1 | %(e) | 7 | % | 4 | % | 4 | % | 4 | % | 2 | % |
(a) | Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. |
(b) | Based on average shares outstanding. |
(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) | Not annualized. |
(f) | Annualized. |
(g) | 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
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Mexico ETF | ||||||||||||||||||||||||
Six Months | �� | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 41.47 | $ | 50.38 | $ | 56.68 | $ | 50.48 | $ | 52.70 | $ | 71.51 | ||||||||||||
Net investment income(a) | 0.30 | 1.09 | 0.95 | 0.88 | 0.93 | 0.68 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.15 | ) | (8.75 | ) | (6.17 | ) | 6.10 | (1.82 | ) | (18.56 | ) | |||||||||||||
Net increase (decrease) from investment operations | 0.15 | (7.66 | ) | (5.22 | ) | 6.98 | (0.89 | ) | (17.88 | ) | ||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.43 | ) | (1.25 | ) | (1.08 | ) | (0.78 | ) | (1.33 | ) | (0.93 | ) | ||||||||||||
Total distributions | (0.43 | ) | (1.25 | ) | (1.08 | ) | (0.78 | ) | (1.33 | ) | (0.93 | ) | ||||||||||||
Net asset value, end of period | $ | 41.19 | $ | 41.47 | $ | 50.38 | $ | 56.68 | $ | 50.48 | $ | 52.70 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.27 | %(d) | (15.23 | )% | (9.02 | )% | 14.03 | % | (1.68 | )% | (25.10 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 1.34 | %(e) | 2.46 | % | 1.87 | % | 1.79 | % | 1.82 | % | 1.10 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 716,655 | $ | 626,243 | $ | 1,168,930 | $ | 1,320,642 | $ | 1,317,518 | $ | 1,206,942 | ||||||||||||
Portfolio turnover rate(f) | 4 | %(d) | 5 | % | 7 | % | 8 | % | 8 | % | 13 | % |
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI South Korea ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 53.34 | $ | 67.65 | $ | 68.19 | $ | 56.89 | $ | 48.15 | $ | 66.42 | ||||||||||||
Net investment income(a) | 0.85 | 0.97 | 0.94 | 0.64 | 0.56 | 0.46 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.91 | (14.49 | ) | 0.70 | 11.31 | 9.38 | (18.07 | ) | ||||||||||||||||
Net increase (decrease) from investment operations | 1.76 | (13.52 | ) | 1.64 | 11.95 | 9.94 | (17.61 | ) | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (1.31 | ) | (0.79 | ) | (2.18 | ) | (0.65 | ) | (1.20 | ) | (0.66 | ) | ||||||||||||
Total distributions | (1.31 | ) | (0.79 | ) | (2.18 | ) | (0.65 | ) | (1.20 | ) | (0.66 | ) | ||||||||||||
Net asset value, end of period | $ | 53.79 | $ | 53.34 | $ | 67.65 | $ | 68.19 | $ | 56.89 | $ | 48.15 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 3.05 | %(d) | (20.08 | )% | 2.15 | % | 21.28 | % | 20.92 | % | (26.58 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.58 | %(e) | 0.59 | % | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | ||||||||||||
Net investment income | 2.87 | %(e) | 1.62 | % | 1.31 | % | 1.05 | % | 1.09 | % | 0.81 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 4,107,003 | $ | 3,848,564 | $ | 3,906,891 | $ | 3,784,638 | $ | 3,452,970 | $ | 3,160,954 | ||||||||||||
Portfolio turnover rate(f) | 7 | %(d)(g) | 16 | %(g) | 18 | %(g) | 16 | %(g) | 22 | %(g) | 24 | %(g) |
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars ("cash creations"). |
(g) | Portfolio turnover rate excluding cash creations was as follows: 5% 5% 11% 6% 10% 10% |
(g) Portfolio turnover rate excluding cash creations was as follows: | 5 | % | 5 | % | 11 | % | 6 | % | 10 | % | 10 | % |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S
Notes to Financial Statements (unaudited)
1. ORGANIZATION
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
Diversification | ||
iShares ETF | Classification | |
MSCI Australia | Non-diversified | |
MSCI Canada | Diversified | |
MSCI Japan | Diversified | |
MSCI MexiCo | Non-diversified | |
MSCI South Korea | Non-diversified |
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. Th Funds' maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
2 0 2 0 i S h a r e s S e m i - A n 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)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral
N O T E S T O F I N A N C I A L S T A T E M E N T S
Notes to Financial Statements (unaudited) (continued)
received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received(a) | Non-Cash Collateral Received | Net Amount | ||||||||
MSCI Australia | ||||||||||||
Goldman Sachs & Co. | $ | 8,275 | $ | 8,275 | $ | — | $ | — | ||||
MSCI Canada | ||||||||||||
Barclays Capital Inc. | $ | 128,664 | $ | 128,664 | $ | — | $ | — | ||||
Citigroup Global Markets Inc. | 371,417 | 371,417 | — | — | ||||||||
Credit Suisse Securities (USA) LLC | 1,944,059 | 1,944,059 | — | — | ||||||||
Goldman Sachs & Co. | 1,805,690 | 1,805,690 | — | — | ||||||||
Morgan Stanley & Co. LLC | 1,607,572 | 1,607,572 | — | — | ||||||||
Scotia Capital (USA) Inc. | 587,517 | 587,517 | — | — | ||||||||
UBS AG | 245,536 | 245,536 | — | — | ||||||||
Wells Fargo Securities LLC | 829,195 | 829,195 | — | — | ||||||||
$ | 7,519,650 | $ | 7,519,650 | $ | — | $ | — | |||||
MSCI Japan | ||||||||||||
BofA Securities, Inc. | $ | 476,891 | $ | 476,891 | $ | — | $ | — | ||||
Goldman Sachs & Co. | 5,139,982 | 5,139,982 | — | — | ||||||||
JPMorgan Securities LLC | 1,199,691 | 1,199,691 | — | — | ||||||||
Macquarie Bank Limited | 1,594,994 | 1,594,994 | — | — | ||||||||
Morgan Stanley & Co. LLC | 7,198,635 | 7,198,635 | — | — | ||||||||
State Street Bank & Trust Company | 24,549 | 24,549 | — | — | ||||||||
$ | 15,634,742 | $ | 15,634,742 | $ | — | $ | — | |||||
MSCI MexiCo | ||||||||||||
BofA Securities, Inc. | $ | 67,813 | $ | 67,813 | $ | — | $ | — | ||||
Morgan Stanley & Co. LLC | 511,266 | 511,266 | — | — | ||||||||
UBS Securities LLC | 800,785 | 800,785 | — | — | ||||||||
$ | 1,379,864 | $ | 1,379,864 | $ | — | $ | — | |||||
MSCI South Korea | ||||||||||||
Barclays Capital Inc. | $ | 3,792,102 | $ | 3,792,102 | $ | — | $ | — | ||||
BofA Securities, Inc. | 20,507,625 | 20,507,625 | — | — | ||||||||
Citigroup Global Markets Inc. | 7,704,652 | 7,704,652 | — | — | ||||||||
Goldman Sachs & Co. | 25,713,668 | 25,713,668 | — | — | ||||||||
Jefferies LLC | 262,207 | 262,207 | — | — | ||||||||
JPMorgan Securities LLC | 19,041,993 | 19,041,993 | — | — | ||||||||
Macquarie Bank Limited | 1,188,967 | 1,188,967 | — | — | ||||||||
Morgan Stanley & Co. LLC | 19,284,516 | 19,284,516 | — | — | ||||||||
UBS Securities LLC | 71,585 | 71,585 | — | — | ||||||||
$ | 97,567,315 | $ | 97,567,315 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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.
2 0 2 0 i S h a r e s S e m i - A n 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)
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).
For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan and iShares MSCI Mexico ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | ||
First $7 billion | 0.59 | % | |
Over $7 billion, up to and including $11 billion | 0.54 | ||
Over $11 billion, up to and including $24 billion | 0.49 | ||
Over $24 billion, up to and including $48 billion | 0.44 | ||
Over $48 billion, up to and including $72 billion | 0.40 | ||
Over $72 billion, up to and including $96 billion | 0.36 | ||
Over $96 billion | 0.32 |
For its investment advisory services to the iShares MSCI South Korea ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | ||
First $2 billion | 0.74 | % | |
Over $2 billion, up to and including $4 billion | 0.69 | ||
Over $4 billion, up to and including $8 billion | 0.64 | ||
Over $8 billion, up to and including $16 billion | 0.57 | ||
Over $16 billion, up to and including $24 billion | 0.51 | ||
Over $24 billion, up to and including $32 billion | 0.48 | ||
Over $32 billion | 0.45 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
N O T E S T O F I N A N C I A L S T A T E M E N T S
Notes to Financial Statements (unaudited) (continued)
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% 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 statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | ||
MSCI Australia | $ | 371 | |
MSCI Canada | 263,509 | ||
MSCI Japan | 38,240 | ||
MSCI MexiCo | 1,567 | ||
MSCI South Korea | 1,308,478 |
Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors 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 February 29, 2020, 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) | ||||||
MSCI Australia | $ | 4,302,401 | $ | 4,813,196 | $ | (2,893,650 | ) | ||
MSCI Japan | 50,442,620 | 13,225,531 | (2,913,123 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||
MSCI Australia | $ | 49,794,038 | $ | 43,964,617 | ||
MSCI Canada | 154,491,865 | 157,889,176 | ||||
MSCI Japan | 133,359,471 | 173,287,534 | ||||
MSCI MexiCo | 38,897,665 | 32,793,070 | ||||
MSCI South Korea | 449,793,089 | 285,242,138 |
For the six months ended February 29, 2020, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||
MSCI Australia | $ | 370,919,875 | $ | 384,798,777 | ||
MSCI Canada | 375,276,237 | 543,767,431 | ||||
MSCI Japan | 2,513,142,188 | 4,200,877,756 | ||||
MSCI MexiCo | 1,099,469,612 | 1,031,899,210 |
2 0 2 0 i S h a r e s S e m i - A n 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)
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Company's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds' financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | ||
MSCI Australia | $ | 180,293,854 | |
MSCI Canada | 546,535,951 | ||
MSCI Japan | 917,415,410 | ||
MSCI MexiCo | 256,843,766 | ||
MSCI South Korea | 472,501,073 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||
MSCI Australia | $ | 1,703,153,997 | $ | 65,371,809 | $ | (480,887,444 | ) | $ | (415,515,635 | ) | ||
MSCI Canada | 2,873,361,474 | 171,400,033 | (642,677,264 | ) | (471,277,231 | ) | ||||||
MSCI Japan | 12,525,168,217 | 476,007,820 | (2,594,097,989 | ) | (2,118,090,169 | ) | ||||||
MSCI MexiCo | 1,131,496,807 | 4,970,994 | (421,226,074 | ) | (416,255,080 | ) | ||||||
MSCI South Korea | 3,412,430,586 | 1,621,632,891 | (889,014,717 | ) | 732,618,174 |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
N O T E S T O F I N A N C I A L S T A T E M E N T S
Notes to Financial Statements (unaudited) (continued)
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||
MSCI Australia | ||||||||||||
Shares sold | 17,200,000 | $ | 384,832,552 | 17,200,000 | $ | 365,456,184 | ||||||
Shares redeemed | (17,400,000 | ) | (388,028,870 | ) | (13,000,000 | ) | (271,786,687 | ) | ||||
Net increase(decrease) | (200,000 | ) | $ | (3,196,318 | ) | 4,200,000 | $ | 93,669,497 | ||||
MSCI Canada | ||||||||||||
Shares sold | 12,800,000 | $ | 377,258,166 | 16,000,000 | $ | 450,405,632 | ||||||
Shares redeemed | (18,500,000 | ) | (547,017,316 | ) | (27,200,000 | ) | (737,512,375 | ) | ||||
Net decrease | (5,700,000 | ) | $ | (169,759,150 | ) | (11,200,000 | ) | $ | (287,106,743 | ) | ||
MSCI Japan | ||||||||||||
Shares sold | 43,950,000 | $ | 2,567,996,616 | 96,150,000 | $ | 5,263,571,116 | ||||||
Shares redeemed | (73,950,000 | ) | (4,207,566,593 | ) | (161,400,000 | ) | (8,767,767,071 | ) | ||||
Net decrease | (30,000,000 | ) | $ | (1,639,569,977 | ) | (65,250,000 | ) | $ | (3,504,195,955 | ) | ||
MSCI MexiCo | ||||||||||||
Shares sold | 25,200,000 | $ | 1,112,553,553 | 34,300,000 | $ | 1,475,864,783 | ||||||
Shares redeemed | (22,900,000 | ) | (1,035,529,828 | ) | (42,400,000 | ) | (1,853,850,273 | ) | ||||
Net increase(decrease) | 2,300,000 | $ | 77,023,725 | (8,100,000 | ) | $ | (377,985,490 | ) | ||||
MSCI South Korea | ||||||||||||
Shares sold | 4,200,000 | 257,732,666 | 23,050,000 | $ | 1,390,211,716 | |||||||
Shares redeemed | — | $ | — | (8,650,000 | ) | (488,176,288 | ) | |||||
Net increase | 4,200,000 | $ | 257,732,666 | 14,400,000 | $ | 902,035,428 |
The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
2 0 2 0 i S h a r e s S e m i - A n 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)
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
12. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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
Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity
CPO Certificates of Participation (Ordinary)
NVS Non-Voting Shares
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-801-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report (Unaudited) | |
iShares Trust
• | iShares Currency Hedged MSCI Eurozone ETF | HEZU | NYSE Arca |
• | iShares Currency Hedged MSCI Germany ETF | HEWG | NASDAQ |
• | iShares Currency Hedged MSCI Italy ETF | HEWI | NYSE Arca |
• | iShares Currency Hedged MSCI Spain ETF | HEWP | NYSE Arca |
• | iShares Currency Hedged MSCI Switzerland ETF | HEWL | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Eurozone ETF |
Investment Objective
The iShares Currency Hedged MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries which use the euro as their official currency while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI EMU 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Eurozone ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||
Since | Since | ||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 5 Years | Inception | ||||||||||
Fund NAV | 0.07 | % | 6.09 | % | 3.92 | % | 5.83 | % | 6.09 | % | 21.21 | % | 37.65 | % | |
Fund Market | 0.14 | 6.27 | 3.93 | 5.84 | 6.27 | 21.24 | 37.78 | ||||||||
Index | (0.02 | ) | 5.85 | 4.06 | 6.12 | 5.85 | 22.02 | 39.79 |
The inception date of the Fund was 7/9/14. The first day of secondary market trading was 7/10/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Annualized Expense Ratio (a) | ||||||||
$ 1,000.00 | $ 1,000.70 | $ 0.15 | $ 1,000.00 | $ 1,024.70 | $ 0.15 | 0.03 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||
Sector | Percent of Total Investments(a) | |
Financials | 16.4 | % |
Industrials | 14.5 | |
Consumer Discretionary | 14.1 | |
Information Technology | 11.0 | |
Consumer Staples | 9.9 | |
Health Care | 8.2 | |
Utilities | 7.6 | |
Materials | 6.8 | |
Communication Services | 4.9 | |
Energy | 4.4 | |
Real Estate | 2.2 |
TEN LARGEST GEOGRAPHIC ALLOCATION | ||
Country/Geographic Region | Percent of Total Investments(a) | |
France | 35.1 | % |
Germany | 26.8 | |
Netherlands | 12.7 | |
Spain | 8.9 | |
Italy | 7.0 | |
Finland | 3.1 | |
Belgium | 2.8 | |
Ireland | 1.8 | |
Austria | 0.7 | |
United Kingdom | 0.6 |
(a) Excludes money market funds.
F U N D S U M M A R Y | 3 |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Germany ETF |
Investment Objective
The iShares Currency Hedged MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization German equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Germany 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Germany ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||
Since | Since | ||||||||||||||
6 Months | 1 Year | 5 Years | Inception | 1 Year | 5 Years | Inception | |||||||||
Fund NAV | 0.65 | % | 4.53 | % | 1.79 | % | 4.82 | % | 4.53 | % | 9.26 | % | 33.12 | % | |
Fund Market | 0.65 | 4.57 | 1.79 | 4.82 | 4.57 | 9.26 | 33.11 | ||||||||
Index | 0.74 | 4.73 | 2.05 | 5.05 | 4.73 | 10.66 | 34.98 |
The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Annualized Expense Ratio (a) | ||||||||
$ 1,000.00 | $ 1,006.50 | $ 0.15 | $ 1,000.00 | $ 1,024.70 | $ 0.15 | 0.03 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||
Sector | Percent of Total Investments(a) | |
Consumer Discretionary | 16.7 | % |
Financials | 16.7 | |
Information Technology | 14.2 | |
Health Care | 13.1 | |
Industrials | 13.0 | |
Materials | 8.6 | |
Communication Services | 5.2 | |
Real Estate | 4.6 | |
Utilities | 4.6 | |
Consumer Staples | 3.3 |
TEN LARGEST HOLDINGS | ||
Security | Percent of Total Investments(a) | |
SAP SE | 10.6 | % |
Allianz SE | 7.9 | |
Siemens AG | 6.9 | |
Bayer AG | 6.2 | |
Deutsche Telekom AG | 4.8 | |
BASF SE | 4.7 | |
adidas AG | 4.4 | |
Daimler AG | 3.3 | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 3.2 | |
Volkswagen AG | 2.7 |
(a) Excludes money market funds.
4 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Italy ETF |
Investment Objective
The iShares Currency Hedged MSCI Italy ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Italian equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Italy 25/50 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Italy ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||
Since | Since | ||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||
Fund NAV | 3.11 | % | 11.28 | % | 4.04 | % | 11.28 | % | 20.30 | % | |
Fund Market | 3.11 | 11.22 | 3.99 | 11.22 | 20.05 | ||||||
Index | 2.69 | 10.23 | 3.58 | 10.23 | 17.83 |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Annualized Expense Ratio (a) | ||||||||
$ 1,000.00 | $ 1,031.10 | $ 0.00 | $ 1,000.00 | $ 1,024.70 | $ 0.00 | 0.03 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||
Sector | Percent of Total Investments(a) | |
Financials | 30.3 | % |
Utilities | 27.0 | |
Consumer Discretionary | 13.2 | |
Industrials | 11.3 | |
Energy | 10.2 | |
Communication Services | 3.9 | |
Consumer Staples | 2.1 | |
Health Care | 2.0 |
TEN LARGEST HOLDINGS | ||
Security | Percent of Total Investments(a) | |
Enel SpA | 19.8 | % |
ntesa Sanpaolo SpA | 9.9 | |
Eni SpA | 8.3 | |
UniCredit SpA | 6.6 | |
Fiat Chrysler Automobiles NV | 4.8 | |
Assicurazioni Generali SpA | 4.5 | |
Ferrari NV | 4.4 | |
Atlantia SpA | 3.9 | |
Snam SpA | 3.7 | |
CNH Industrial NV | 3.5 |
(a) Excludes money market funds.
F U N D S U M M A R Y | 5 |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI I Spain ETF |
Investment Objective
The iShares Currency Hedged MSCI Spain ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Spanish equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Spain 25/50 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Spain ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||
Since | Since | ||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||
Fund NAV | 1.64 | %(a) | (0.24 | )% | 0.93 | % | (0.24 | )% | 4.41 | % | |
Fund Market | 1.89 | (0.10 | ) | 0.94 | (0.10 | ) | 4.46 | ||||
Index | 1.62 | (0.74 | ) | 0.94 | (0.74 | ) | 4.45 |
(a) | The NAV total return presented in the table for the six-months period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Annualized Expense Ratio (a) | ||||||||
$ 1,000.00 | $ 1,016.40 | $ 0.15 | $ 1,000.00 | $ 1,024.70 | $ 0.15 | 0.03 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||
Sector | Percent of Total Investments(a) | |
Financials | 31.6 | % |
Utilities | 27.9 | |
Industrials | 13.0 | |
Communication Services | 8.5 | |
Consumer Discretionary | 6.8 | |
Information Technology | 4.5 | |
Energy | 4.3 | |
Health Care | 3.4 |
TEN LARGEST HOLDINGS | ||
Security | Percent of Total Investments(a) | |
berdrola SA | 17.0 | % |
Banco Santander SA | 14.7 | |
Banco Bilbao Vizcaya Argentaria SA | 7.0 | |
ndustria de Diseno Textil SA | 6.8 | |
Amadeus IT Group SA | 4.5 | |
Ferrovial SA | 4.5 | |
Repsol SA | 4.3 | |
Telefonica SA | 4.3 | |
Cellnex Telecom SA | 4.2 | |
Aena SME SA | 3.7 |
(a) Excludes money market funds.
6 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI Switzerland ETF |
Investment Objective
The iShares Currency Hedged MSCI Switzerland ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Swiss equities while mitigating exposure to fluctuations between the value of the Swiss franc and the U.S. dollar, as represented by the MSCI Switzerland 25/50 100% Hedged to USD Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Switzerland ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||
Since | Since | ||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||
Fund NAV | (0.05 | )% | 11.37 | % | 8.42 | % | 11.37 | % | 45.88 | % | |
Fund Market | 0.46 | 11.79 | 8.51 | 11.79 | 46.42 | ||||||
Index | 0.18 | 10.99 | 8.46 | 10.99 | 46.09 |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period (a)(b) | Annualized Expense Ratio (a) | ||||||||
$ 1,000.00 | $ 999.50 | $ 0.15 | $ 1,000.00 | $ 1,024.70 | $ 0.15 | 0.03 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 8 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR | ||
Sector | Percent of Total Investments(a) | |
Health Care | 33.1 | % |
Consumer Staples | 23.0 | |
Financials | 18.0 | |
Industrials | 9.9 | |
Materials | 7.9 | |
Consumer Discretionary | 4.7 | |
Communication Services. | 1.4 | |
Real Estate. | 1.0 | |
Information Technology | 1.0 |
TEN LARGEST HOLDINGS | ||
Security | Percent of Total Investments(a) | |
Nestle SA | 20.4 | % |
Roche Holding AG | 14.1 | |
Novartis AG | 11.0 | |
Zurich Insurance Group AG | 4.3 | |
UBS Group AG | 3.5 | |
ABB Ltd. | 3.3 | |
Cie. Financiere Richemont SA. | 3.0 | |
Lonza Group AG. | 2.6 | |
Givaudan SA | 2.5 | |
Credit Suisse Group AG | 2.5 |
(a) Excludes money market funds.
F U N D S U M M A R Y | 7 |
Past performance is no guarantee of future results. 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund ’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calcu late market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8 | 2 0 2 0 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Eurozone ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||
Investment Companies | ||||
Exchange-Traded Funds — 100.6% | ||||
iShares MSCI Eurozone ETF(a) | 23,309,379 | $ 873,868,619 | ||
Total Investment Companies — 100.6% (Cost: $993,090,120) | 873,868,619 | |||
Short-Term Investments | ||||
Money Market Funds — 0.1% | ||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 954,000 | 954,000 | ||
Total Short-Term Investments — 0.1% (Cost: $954,000) | 954,000 | |||
Total Investments in Securities — 100.7% (Cost: $994,044,120) | 874,822,619 | |||
Other Assets, Less Liabilities — (0.7)% | (6,499,852 | ) | ||
Net Assets — 100.0% | $ 868,322,767 |
(a) Affiliate of the Fund.
(b) Annualized 7-day yield as of period-end.
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Shares Purchased | Shares Sold | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net | Change in | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 851,000 | 103,000 | (b) | — | 954,000 | $ | 954,000 | $ | 6,321 | $ | — | $ | — | |||||||||||
iShares MSCI Eurozone ETF | 22,742,705 | 9,653,694 | (9,087,020 | ) | 23,309,379 | 873,868,619 | 4,077,200 | (578,044 | ) | (3,820,602 | ) | |||||||||||||
$ | 874,822,619 | $ | 4,083,521 | $ | (578,044 | ) | $ | (3,820,602 | ) |
(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Net of purchases and sales.
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | |||||||||||
EUR | 41,537,000 | USD | 45,093,539 | BNP | 03/03/20 | $ | 761,239 | ||||||||
EUR | 5,898,000 | USD | 6,426,859 | BOA | 03/03/20 | 84,239 | |||||||||
EUR | 647,000 | USD | 703,874 | DB | 03/03/20 | 10,382 | |||||||||
EUR | 215,667,586 | USD | 236,492,018 | MS | 03/03/20 | 1,594,247 | |||||||||
EUR | 4,371,000 | USD | 4,757,525 | SSB | 03/03/20 | 67,841 | |||||||||
EUR | 725,524,593 | USD | 795,555,854 | UBS | 03/03/20 | 5,387,132 | |||||||||
USD | 24,196,348 | EUR | 21,797,000 | CITI | 03/03/20 | 133,547 | |||||||||
USD | 12,357,537 | EUR | 11,171,000 | JPM | 03/03/20 | 25,310 | |||||||||
USD | 99,910,995 | EUR | 90,473,834 | MS | 03/03/20 | 32,392 | |||||||||
EUR | 31,777,000 | USD | 35,034,571 | BNP | 04/02/20 | 111,175 | |||||||||
EUR | 31,049,000 | USD | 34,170,232 | SSB | 04/02/20 | 170,339 | |||||||||
8,377,843 | |||||||||||||||
EUR | 3,253,000 | USD | 3,610,989 | BOA | 03/03/20 | (19,839 | ) | ||||||||
EUR | 4,286,000 | USD | 4,737,306 | MS | 03/03/20 | (5,774 | ) | ||||||||
USD | 32,474,954 | EUR | 29,928,000 | BNP | 03/03/20 | (564,067 | ) |
F U N D S U M M A R Y | 9 |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Eurozone ETF |
February 29, 2020 |
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | |||||||||||
USD | 815,150,272 | EUR | 738,554,511 | BOA | 03/03/20 | $ | (177,094 | ) | |||||||
USD | 1,605,833 | EUR | 1,465,000 | DB | 03/03/20 | (11,454 | ) | ||||||||
USD | 1,849,727 | EUR | 1,700,000 | JPM | 03/03/20 | (26,989 | ) | ||||||||
USD | 96,261,385 | EUR | 87,633,834 | MS | 03/03/20 | (482,000 | ) | ||||||||
USD | 18,468,647 | EUR | 17,079,000 | SSB | 03/03/20 | (385,717 | ) | ||||||||
USD | 1,504,576 | EUR | 1,382,000 | UBS | 03/03/20 | (21,083 | ) | ||||||||
EUR | 3,942,000 | USD | 4,360,759 | UBS | 04/02/20 | (859 | ) | ||||||||
USD | 3,039,966 | EUR | 2,761,000 | BOA | 04/02/20 | (13,733 | ) | ||||||||
USD | 140,485,998 | EUR | 128,033,752 | MS | 04/02/20 | (1,120,887 | ) | ||||||||
USD | 797,016,335 | EUR | 725,524,593 | UBS | 04/02/20 | (5,422,674 | ) | ||||||||
(8,252,170 | ) | ||||||||||||||
Net unrealized appreciation | $ | 125,673 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | |||
Assets — Derivative Financial Instruments | |||
Forward foreign currency exchange contracts Unrealized appreciation on forward foreign currency exchange contracts | $ | 8,377,843 | |
Liabilities — Derivative Financial Instruments | |||
Forward foreign currency exchange contracts Unrealized depreciation on forward foreign currency exchange contracts | $ | 8,252,170 | |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows: |
Foreign Currency Exchange Contracts | |||
Net Realized Gain (Loss) from: | |||
Forward foreign currency exchange contracts. | $ | 19,857,454 | |
Net Change in Unrealized Appreciation (Depreciation) on: | |||
Forward foreign currency exchange contracts | $ | (14,593,183 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments | |||
Forward foreign currency exchange contracts: | |||
Average amounts purchased — in USD | $ | 1,042,762,783 | |
Average amounts sold — in USD. | $ | 1,941,932,037 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
10 | 2 0 2 0 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Eurozone ETF |
February 29, 2020 |
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
��
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 8,377,843 | $ | 8,252,170 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 8,377,843 | $ | 8,252,170 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 8,377,843 | $ | 8,252,170 |
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:
Derivative | ||||||||||||||||
Assets | ||||||||||||||||
Subject to | Derivatives | Cash | Net Amount | |||||||||||||
an MNA by | Available | Collateral | of Derivative | |||||||||||||
Counterparty | Counterparty | for Offset(a) | Received(b) | Assets(c)(d) | ||||||||||||
Bank of America N.A | $ | 84,239 | $ | (84,239 | ) | $ | — | $ | — | |||||||
BNP Paribas SA | 872,414 | (564,067 | ) | — | 308,347 | |||||||||||
Citibank N.A. | 133,547 | — | — | 133,547 | ||||||||||||
Deutsche Bank AG London | 10,382 | (10,382 | ) | — | — | |||||||||||
JPMorgan Chase Bank N.A. | 25,310 | (25,310 | ) | — | — | |||||||||||
Morgan Stanley & Co. International PLC | 1,626,639 | (1,608,661 | ) | (17,978 | ) | — | ||||||||||
State Street Bank and Trust Co. | 238,180 | (238,180 | ) | — | — | |||||||||||
UBSAG | 5,387,132 | (5,387,132 | ) | — | — | |||||||||||
$ | 8,377,843 | $ | (7,917,971 | ) | $ | (17,978 | ) | $ | 441,894 |
Derivative | ||||||||||||||||
Liabilities | ||||||||||||||||
Subject to | Derivatives | Cash | Net Amount | |||||||||||||
an MNA by | Available | Collateral | of Derivative | |||||||||||||
Counterparty | Counterparty | for Offset(a) | Pledged | Liabilities(d)(e) | ||||||||||||
Bank of America N.A | $ | 210,666 | $ | (84,239 | ) | $ | — | $ | 126,427 | |||||||
BNP Paribas SA | 564,067 | (564,067 | ) | — | — | |||||||||||
Deutsche Bank AG London | 1 1,454 | (10,382 | ) | — | 1,072 | |||||||||||
JPMorgan Chase Bank N.A. | 26,989 | (25,310 | ) | — | 1,679 | |||||||||||
Morgan Stanley & Co. International PLC | 1,608,661 | (1,608,661 | ) | — | — | |||||||||||
State Street Bank and Trust Co. | 385,717 | (238,180 | ) | — | 147,537 | |||||||||||
UBSAG | 5,444,616 | (5,387,132 | ) | — | 57,484 | |||||||||||
$ | 8,252,170 | $ | (7,917,971 | ) | $ | — | $ | 334,199 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(d) | Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
(e) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
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) | iShares® Currency Hedged MSCI Eurozone ETF |
February 29, 2020
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 873,868,619 | $ | — | $ | — | $ | 873,868,619 | ||||||||
Money Market Funds | 954,000 | — | — | 954,000 | ||||||||||||
$ | 874,822,619 | $ | — | $ | — | $ | 874,822,619 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 8,377,843 | $ | — | $ | 8,377,843 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (8,252,170 | ) | — | (8,252,170 | ) | ||||||||||
$ | — | $ | 125,673 | $ | — | $ | 125,673 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
12 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Germany ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 100.7% | ||||||||
iShares MSCI Germany ETF(a) | 5,420,829 | $ | 142,134,136 | |||||
Total Investment Companies — 100.7% | ||||||||
(Cost: $172,296,148) | 142,134,136 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 75,000 | 75,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $75,000) | 75,000 | |||||||
Total Investments in Securities — 100.7% | ||||||||
(Cost: $172,371,148) | 142,209,136 | |||||||
Other Assets, Less Liabilities — (0.7)% | (1,045,175 | ) | ||||||
Net Assets — 100.0% . | $ | 141,163,961 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss) (a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 75,000 | — | — | 75,000 | $ | 75,000 | $ | 537 | $ | — | $ | — | ||||||||||||||||||||
iShares MSCI Germany ETF | 5,844,757 | 751,153 | (1,175,081 | ) | 5,420,829 | 142,134,136 | — | (1,446,988 | ) | 2,052,312 | ||||||||||||||||||||||
$ | 142,209,136 | $ | 537 | $ | (1,446,988 | ) | $ | 2,052,312 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||||||||
Appreciation | ||||||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | ||||||||||||||||
EUR | 36,110,150 | USD | 39,596,871 | MS | 03/03/20 | $ | 266,935 | |||||||||||||
EUR | 125,788,950 | USD | 137,930,728 | UBS | 03/03/20 | 934,002 | ||||||||||||||
USD | 5,655,842 | EUR | 5,095,000 | CITI | 03/03/20 | 31,216 | ||||||||||||||
USD | 15,360,350 | EUR | 13,912,100 | MS | 03/03/20 | 2,085 | ||||||||||||||
EUR | 2,547,000 | USD | 2,804,344 | BOA | 04/02/20 | 12,669 | ||||||||||||||
EUR | 4,943,000 | USD | 5,449,920 | CITI | 04/02/20 | 17,098 | ||||||||||||||
EUR | 6,386,000 | USD | 7,027,959 | SSB | 04/02/20 | 35,035 | ||||||||||||||
1,299,040 | ||||||||||||||||||||
EUR | 1,092,000 | USD | 1,212,176 | MS | 03/03/20 | (6,662 | ) | |||||||||||||
USD | 18,276,884 | EUR | 16,681,100 | MS | 03/03/20 | (138,219 | ) | |||||||||||||
USD | 140,498,962 | EUR | 127,302,900 | SSB | 03/03/20 | (37,094 | ) | |||||||||||||
EUR | 3,646,000 | USD | 4,033,315 | UBS | 04/02/20 | (794 | ) | |||||||||||||
USD | 24,359,384 | EUR | 22,198,050 | MS | 04/02/20 | (191,929 | ) |
SC H E D U L E O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Germany ETF |
February 29, 2020
Forward Foreign Currency Exchange Contracts (continued)
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | ||||||||||||
USD 138,183,942 | EUR | 125,788,950 | UBS | 04/02/20 | $ | (940,165 | ) | |||||||||
(1,314,863 | ) | |||||||||||||||
Net unrealized depreciation | $ | (15,823 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 1,299,040 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 1,3 14,863 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 3,854,480 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (2,762,918 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 186,459,350 | ||
Average amounts sold — in USD | $ | 341,198,994 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 1,299,040 | $ | 1,314,863 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 1,299,040 | $ | 1,314,863 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 1,299,040 | $ | 1,314,863 |
14 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Germany ETF |
February 29, 2020
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:
Derivative | ||||||||||||
Assets | ||||||||||||
Subject to | Derivatives | Net Amount | ||||||||||
an MNA by | Available | of Derivative | ||||||||||
Counterparty | Counterparty | for Offset(a) | Assets(b) | |||||||||
Bank of America N.A | $ | 12,669 | $ | — | $ | 12,669 | ||||||
Citibank N.A. | 48,314 | — | 48,314 | |||||||||
Morgan Stanley & Co. International PLC | 269,020 | (269,020 | ) | — | ||||||||
State Street Bank and Trust Co. | 35,035 | (35,035 | ) | — | ||||||||
UBSAG | 934,002 | (934,002 | ) | — | ||||||||
$ | 1,299,040 | $ | (1,238,057 | ) | $ | 60,983 |
Derivative | ||||||||||||
Liabilities | ||||||||||||
Subject to | Derivatives | Net Amount | ||||||||||
an MNA by | Available | of Derivative | ||||||||||
Counterparty | Counterparty | for Offset(a) | Liabilities(c) | |||||||||
Morgan Stanley & Co. International PLC | $ | 336,810 | $ | (269,020 | ) | $ | 67,790 | |||||
State Street Bank and Trust Co. | 37,094 | (35,035 | ) | 2,059 | ||||||||
UBSAG | 940,959 | (934,002 | ) | 6,957 | ||||||||
$ | 1,314,863 | $ | (1,238,057 | ) | $ | 76,806 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(c) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 142,134,136 | $ | — | $ | — | $ | 142,134,136 | ||||||||
Money Market Funds | 75,000 | — | — | 75,000 | ||||||||||||
$ | 142,209,136 | $ | — | $ | — | $ | 142,209,136 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 1,299,040 | $ | — | $ | 1,299,040 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (1,314,863 | ) | — | (1,314,863 | ) | ||||||||||
$ | — | $ | (15,823 | ) | $ | — | $ | (15,823 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S C H E D U L E O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Italy ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 100.8% | ||||||||
iShares MSCI Italy ETF(a) | 64,461 | $ | 1,755,918 | |||||
Total Investment Companies — 100.8% | ||||||||
(Cost: $1,905,169) | 1,755,918 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 1,000 | 1,000 | ||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $1,000) | 1,000 | |||||||
Total Investments in Securities — 100.9% | ||||||||
(Cost: $1,906,169) | 1,756,918 | |||||||
Other Assets, Less Liabilities — (0.9)% | (15,136 | ) | ||||||
Net Assets — 100.0% | $ | 1,741,782 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 130,344 | — | (130,344 | )(b) | — | $ | — | $ | 6,624 | (c) | $ | 58 | $ | 13 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | 1,000 | (b) | — | 1,000 | 1,000 | 3 | — | — | |||||||||||||||||||||||
iShares MSCI Italy ETF | 62,897 | 3,914 | (2,350 | ) | 64,461 | 1,755,918 | 12,988 | (1,840 | ) | 23,024 | ||||||||||||||||||||||
$ | 1,756,918 | $ | 19,615 | $ | (1,782 | ) | $ | 23,037 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||||||||
Appreciation | ||||||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | ||||||||||||||||
EUR | 3,420,000 | USD | 3,750,245 | MS | 03/03/20 | $ | 25,265 | |||||||||||||
USD | 1,892,870 | EUR | 1,714,000 | MS | 03/03/20 | 700 | ||||||||||||||
EUR | 103,000 | USD | 113,455 | MS | 04/02/20 | 464 | ||||||||||||||
26,429 | ||||||||||||||||||||
EUR | 8,000 | USD | 8,879 | MS | 03/03/20 | (48 | ) | |||||||||||||
USD | 1,882,743 | EUR | 1,714,000 | MS | 03/03/20 | (9,427 | ) | |||||||||||||
USD | 1,870,911 | EUR | 1,706,000 | MS | 04/02/20. | (15,947 | ) | |||||||||||||
(25,422 | ) | |||||||||||||||||||
Net unrealized appreciation | $ 1 ,007 |
16 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Italy ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 26,429 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 25,422 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts. | $ | 41,701 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts. | $ | (27,021 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD. | $ | 3,062,221 | ||
Average amounts sold — in USD | $ | 4,852,078 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 26,429 | $ | 25,422 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 26,429 | $ | 25,422 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 26,429 | $ | 25,422 |
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:
Derivative | ||||||||||
Assets | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Assets(b) | |||||||
Morgan Stanley & Co. International PLC | $ | 26,429 | $ | (25,422 | ) | $ | 1,007 |
Derivative | ||||||||||
Liabilities | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Liabilities | |||||||
Morgan Stanley & Co. International PLC | $ | 25,422 | $ | (25,422 | ) | $ | — |
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Italy ETF |
February 29, 2020
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 1,755,918 | $ | — | $ | — | $ | 1,755,918 | ||||||||
Money Market Funds | 1,000 | — | — | 1,000 | ||||||||||||
$ | 1,756,918 | $ | — | $ | — | $ | 1,756,918 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 26,429 | $ | — | $ | 26,429 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (25,422 | ) | — | (25,422 | ) | ||||||||||
$ | — | $ | 1,007 | $ | — | $ | 1,007 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
18 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Spain ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 100.8% | ||||||||
iShares MSCI Spain ETF(a)(b) | 275,959 | $ | 7,254,962 | |||||
Total Investment Companies — 100.8% | ||||||||
(Cost: $9,120,912) | 7,254,962 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 46.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(a)(c)(d) | 3,338,105 | 3,340,442 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(c) | 3,000 | 3,000 | ||||||
3,343,442 | ||||||||
Total Short-Term Investments — 46.4% | ||||||||
(Cost: $3,343,238) | 3,343,442 | |||||||
Total Investments in Securities — 147.2% | ||||||||
(Cost: $12,464,150) | 10,598,404 | |||||||
Other Assets, Less Liabilities — (47.2)% | (3,400,580 | ) | ||||||
Net Assets — 100.0% | $ | 7,197,824 |
(a) | Affiliate of the Fund. |
(b) | All or a portion of this security is on loan. (c) Annualized 7-day yield as of period-end. |
(d) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares. | 3,874,277 | — | (536,172 | )(b) | 3,338,105 | $ | 3,340,442 | $ | 15,451 | (c) | $ | (48 | ) | $ | 590 | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 5,000 | — | (2,000 | )(b) | 3,000 | 3,000 | 29 | — | — | |||||||||||||||||||||||
iShares MSCI Spain ETF | 385,170 | 24,490 | (133,701 | ) | 275,959 | 7,254,962 | 185,250 | (412,020 | ) | 534,361 | ||||||||||||||||||||||
$ | 10,598,404 | $ | 200,730 | $ | (412,068 | ) | $ | 534,951 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||||||||
Appreciation | ||||||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | ||||||||||||||||
EUR | 14,080,000 | USD | 15,439,542 | MS | 03/03/20 | $ | 104,076 | |||||||||||||
USD | 7,773,572 | EUR | 7,040,000 | MS | 03/03/20 | 1,763 | ||||||||||||||
EUR | 402,000 | USD | 442,997 | MS | 04/02/20 | 1,620 | ||||||||||||||
107,459 | ||||||||||||||||||||
USD | 7,733,088 | EUR | 7,040,000 | MS | 03/03/20 | (38,721 | ) | |||||||||||||
USD | 7,720,522 | EUR | 7,040,000 | MS | 04/02/20 | (65,803 | ) | |||||||||||||
(104,524 | ) | |||||||||||||||||||
Net unrealized appreciation | $ | 2,935 |
S C H E D U L E O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Spain ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 107,459 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 104,524 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 211,414 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (172,270 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 14,827,431 | ||
Average amounts sold — in USD | $ | 23,731,310 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 107,459 | $ | 104,524 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 107,459 | $ | 104,524 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 107,459 | $ | 104,524 |
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:
Derivative | ||||||||||
Assets | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Assets(b) | |||||||
Morgan Stanley & Co. International PLC | $ | 107,459 | $ | (104,524 | ) | $ | 2,935 | |||
Derivative | ||||||||||
Liabilities | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Liabilities | |||||||
Morgan Stanley & Co. International PLC | $ | 104,524 | $ | (104,524 | ) | $ | — |
20 | 2 0 2 0 I S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Spain ETF |
February 29, 2020 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 7,254,962 | $ | — | $ | — | $ | 7,254,962 | ||||||||
Money Market Funds | 3,343,442 | — | — | 3,343,442 | ||||||||||||
$ | 10,598,404 | $ | — | $ | — | $ | 10,598,404 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts. | $ | — | $ | 107,459 | $ | — | $ | 107,459 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (104,524 | ) | — | (104,524 | ) | ||||||||||
$ | — | $ | 2,935 | $ | — | $ | 2,935 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 21 |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Switzerland ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 100.6% | ||||||||
iShares MSCI Switzerland ETF(a) | 230,414 | $ | 8,728,082 | |||||
Total Investment Companies — 100.6% | ||||||||
(Cost: $7,899,453) | 8,728,082 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 4,000 | 4,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $4,000) | 4,000 | |||||||
Total Investments in Securities — 100.6% | ||||||||
(Cost: $7,903,453) | 8,732,082 | |||||||
Other Assets, Less Liabilities — (0.6)% | (53,912 | ) | ||||||
Net Assets — 100.0% | $ | 8,678,170 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 0 | (b) | — | — | $ | — | $ | 262 | (c) | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 3,000 | 1,000 | (b) | — | 4,000 | 4,000 | 30 | — | — | |||||||||||||||||||||||
iShares MSCI Switzerland ETF | 194,217 | 45,431 | (9,234 | ) | 230,414 | 8,728,082 | — | 293 | (13,217 | ) | ||||||||||||||||||||||
$ | 8,732,082 | $ | 292 | $ | 293 | $ | (13,217 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||||
Appreciation | ||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | (Depreciation) | ||||||||||||
CHF | 18,406,000 | USD | 18,990,299 | MS | 03/03/20 | $ | 87,230 | |||||||||
USD | 318,914 | CHF | 307,000 | MS | 03/03/20 | 713 | ||||||||||
CHF | 668,000 | USD | 692,138 | MS | 04/02/20 | 1,731 | ||||||||||
89,674 | ||||||||||||||||
CHF | 36,000 | USD | 37,391 | MS | 03/03/20 | (78 | ) | |||||||||
USD | 18,727,819 | CHF | 18,135,000 | MS | 03/03/20 | (68,822 | ) | |||||||||
USD | 9,483,884 | CHF | 9,185,000 | MS | 04/02/20 | (56,801 | ) | |||||||||
(125,701 | ) | |||||||||||||||
Net unrealized depreciation | $ | (36,027 | ) |
22 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Switzerland ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 89,674 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 125,701 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | (49,009 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (41,138 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 14,101,723 | ||
Average amounts sold — in USD | $ | 22,045,195 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund's derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 89,674 | $ | 125,701 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities. | $ | 89,674 | $ | 125,701 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement ("MNA") | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 89,674 | $ | 125,701 |
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:
Derivative | ||||||||||
Assets | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Assets | |||||||
Morgan Stanley & Co. International PLC. | $ | 89,674 | $ | (89,674 | ) | $ | — |
Derivative | ||||||||||
Liabilities | ||||||||||
Subject to | Derivatives | Net Amount | ||||||||
an MNA by | Available | of Derivative | ||||||||
Counterparty | Counterparty | for Offset(a) | Liabilities(b) | |||||||
Morgan Stanley & Co. International PLC | $ | 125,701 | $ | (89,674 | ) | $ | 36,027 |
S c h e d u l e o f I n v e s t m e n t s | 23 |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Switzerland ETF |
February 29, 2020 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 8,728,082 | $ | — | $ | — | $ | 8,728,082 | ||||||||
Money Market Funds | 4,000 | — | — | 4,000 | ||||||||||||
$ | 8,732,082 | $ | — | $ | — | $ | 8,732,082 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts. | $ | — | $ | 89,674 | $ | — | $ | 89,674 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (125,701 | ) | — | (125,701 | ) | ||||||||||
$ | — | $ | (36,027 | ) | $ | — | $ | (36,027 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
24 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares | iShares | |||||||||||||||
Currency | Currency | iShares | iShares | |||||||||||||
Hedged | Hedged | Currency | Currency | |||||||||||||
MSCI | MSCI | Hedged | Hedged | |||||||||||||
Eurozone | Germany | MSCI Italy | MSCI Spain | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||||||||||
Affiliated(b) | $ | 874,822,619 | $ | 142,209,136 | $ | 1,756,918 | $ | 10,598,404 | ||||||||
Cash | 302 | 373 | 24 | 916 | ||||||||||||
Receivables: | ||||||||||||||||
Securities lending income — Affiliated | — | — | 1,185 | 2,095 | ||||||||||||
Capital shares sold | 13,827 | — | — | — | ||||||||||||
Dividends | 1,961 | 110 | 2 | 3 | ||||||||||||
Unrealized appreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 8,377,843 | 1,299,040 | 26,429 | 107,459 | ||||||||||||
Total assets | 883,216,552 | 143,508,659 | 1,784,558 | 10,708,877 | ||||||||||||
LIABILITIES | ||||||||||||||||
Cash received: | ||||||||||||||||
Collateral — forward foreign currency exchange contracts | 520,000 | — | — | — | ||||||||||||
Collateral on securities loaned, at value | — | — | — | 3,339,900 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 6,097,093 | 1,013,500 | 17,354 | 66,441 | ||||||||||||
Capital shares redeemed | 1,386 | 11,707 | — | — | ||||||||||||
Investment advisory fees | 23,136 | 4,628 | — | 188 | ||||||||||||
Unrealized depreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 8,252,170 | 1,314,863 | 25,422 | 104,524 | ||||||||||||
Total liabilities | 14,893,785 | 2,344,698 | 42,776 | 3,511,053 | ||||||||||||
NET ASSETS | $ | 868,322,767 | $ | 141,163,961 | $ | 1,741,782 | $ | 7,197,824 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital. | $ | 991,928,318 | $ | 211,588,816 | $ | 2,231,860 | $ | 13,481,436 | ||||||||
Accumulated loss | (123,605,551 | ) | (70,424,855 | ) | (490,078 | ) | (6,283,612 | ) | ||||||||
NET ASSETS | $ | 868,322,767 | $ | 141,163,961 | $ | 1,741,782 | $ | 7,197,824 | ||||||||
Shares outstanding | 29,950,000 | 5,350,000 | 100,000 | 350,000 | ||||||||||||
Net asset value | $ | 28.99 | $ | 26.39 | $ | 17.42 | $ | 20.57 | ||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value | None | None | None | None | ||||||||||||
(a) Securities loaned, at value | $ | — | $ | — | $ | — | $ | 3,252,073 | ||||||||
(b) Investments, at cost — Affiliated | $ | 994,044,120 | $ | 172,371,148 | $ | 1,906,169 | $ | 12,464,150 |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 25 |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares | ||||
Currency | ||||
Hedged | ||||
MSCI | ||||
Switzerland | ||||
ETF | ||||
ASSETS | ||||
Investments in securities, at value: | ||||
Affiliated(a) | $ | 8,732,082 | ||
Cash | 709 | |||
Receivables: | ||||
Dividends | 6 | |||
Unrealized appreciation on: | ||||
Forward foreign currency exchange contracts | 89,674 | |||
Total assets | 8,822,471 | |||
LIABILITIES | ||||
Payables: | ||||
Investments purchased | 18,373 | |||
Investment advisory fees | 227 | |||
Unrealized depreciation on: | ||||
Forward foreign currency exchange contracts | 125,701 | |||
Total liabilities | 144,301 | |||
NET ASSETS | $ | 8,678,170 | ||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 7,980,551 | ||
Accumulated earnings | 697,619 | |||
NET ASSETS | $ | 8,678,170 | ||
Shares outstanding | 300,000 | |||
Net asset value | $ | 28.93 | ||
Shares authorized | Unlimited | |||
Par value | None | |||
(a) Investments, at cost — Affiliated | $ | 7,903,453 |
See notes to financial statements
26 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | iShares | |||||||||||||||
Currency | Currency | iShares | iShares | |||||||||||||
Hedged | Hedged | Currency | Currency | |||||||||||||
MSCI | MSCI | Hedged | Hedged | |||||||||||||
Eurozone | Germany | MSCI | MSCI | |||||||||||||
ETF | ETF | Italy ETF | Spain ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Affiliated | $ | 4,083,521 | $ | 537 | $ | 12,991 | $ | 185,279 | ||||||||
Securities lending income — Affiliated — net | — | — | 6,624 | 15,451 | ||||||||||||
Total investment income | 4,083,521 | 537 | 19,615 | 200,730 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 2,868,084 | 426,815 | 5,645 | 27,596 | ||||||||||||
Total expenses | 2,868,084 | 426,815 | 5,645 | 27,596 | ||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | (2,729,306 | ) | (400,519 | ) | (5,645 | ) | (26,261 | ) | ||||||||
Total expenses after fees waived | 138,778 | 26,296 | — | 1,335 | ||||||||||||
Net investment income (loss) | 3,944,743 | (25,759 | ) | 19,615 | 199,395 | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Affiliated | (5,480,448 | ) | (778,087 | ) | (1,782 | ) | (84,182 | ) | ||||||||
In-kind redemptions — Affiliated | 4,902,404 | (668,901 | ) | — | (327,886 | ) | ||||||||||
Forward foreign currency exchange contracts | 19,857,454 | 3,854,480 | 41,701 | 211,414 | ||||||||||||
Net realized gain (loss) | 19,279,410 | 2,407,492 | 39,919 | (200,654 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Affiliated | (3,820,602 | ) | 2,052,312 | 23,037 | 534,951 | |||||||||||
Forward foreign currency exchange contracts | (14,593,183 | ) | (2,762,918 | ) | (27,021 | ) | (172,270 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (18,413,785 | ) | (710,606 | ) | (3,984 | ) | 362,681 | |||||||||
Net realized and unrealized gain | 865,625 | 1,696,886 | 35,935 | 162,027 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 4,810,368 | $ | 1,671,127 | $ | 55,550 | $ | 361,422 |
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 | 27 |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares | ||||
Currency | ||||
Hedged | ||||
MSCI | ||||
Switzerland | ||||
ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 30 | ||
Securities lending income — Affiliated — net. | 262 | |||
Total investment income | 292 | |||
EXPENSES | ||||
Investment advisory fees | 25,144 | |||
Total expenses | 25,144 | |||
Less: | ||||
Investment advisory fees waived | (23,927 | ) | ||
Total expenses after fees waived | 1,217 | |||
Net investment loss | (925 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Affiliated | 293 | |||
Forward foreign currency exchange contracts | (49,009 | ) | ||
Net realized loss | (48,716 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Affiliated | (13,217 | ) | ||
Forward foreign currency exchange contracts | (41,138 | ) | ||
Net change in unrealized appreciation (depreciation) | (54,355 | ) | ||
Net realized and unrealized loss | (103,071 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (103,996 | ) |
See notes to financial statements
28 | 2 0 2 0 I s h a r e s S e m i - A n 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 | iShares | |||||||||||||||
Currency Hedged MSCI Eurozone ETF | Currency Hedged MSCI Germany ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 3,944,743 | $ | 30,304,545 | $ | (25,759 | ) | $ | 4,709,161 | |||||||
Net realized gain | 19,279,410 | 22,553,918 | 2,407,492 | 1,958,880 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (18,413,785 | ) | (75,152,916 | ) | (710,606 | ) | (23,097,587 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | 4,810,368 | (22,294,453 | ) | 1,671,127 | (16,429,546 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
From net investment income and net realized gain | (28,920,443 | ) | (30,343,703 | ) | — | (4,709,161 | ) | |||||||||
Return of capital | — | — | — | (7,999 | ) | |||||||||||
Decrease in net assets resulting from distributions to shareholders | (28,920,443 | ) | (30,343,703 | ) | — | (4,717,160 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 23,445,500 | (738,822,576 | ) | (15,126,825 | ) | (154,579,632 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total decrease in net assets | (664,575 | ) | (791,460,732 | ) | (13,455,698 | ) | (175,726,338 | ) | ||||||||
Beginning of period | 868,987,342 | 1,660,448,074 | 154,619,659 | 330,345,997 | ||||||||||||
End of period | $ | 868,322,767 | $ | 868,987,342 | $ | 141,163,961 | $ | 154,619,659 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 29 |
Statements of Changes in Net Assets (continued)
iShares | iShares | |||||||||||||||
Currency Hedged MSCI Italy ETF | Currency Hedged MSCI Spain ETF | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 19,615 | $ | 92,180 | $ | 199,395 | $ | 478,644 | ||||||||
Net realized gain (loss) | 39,919 | (4,640 | ) | (200,654 | ) | 210,659 | ||||||||||
Net change in unrealized appreciation (depreciation) | (3,984 | ) | 76,153 | 362,681 | (517,623 | ) | ||||||||||
Net increase in net assets resulting from operations | 55,550 | 163,693 | 361,422 | 171,680 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ` | |||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (19,337 | ) | (94,542 | ) | (201,347 | ) | (479,645 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | — | (746,187 | ) | (3,334,315 | ) | (5,223,688 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 36,213 | (677,036 | ) | (3,174,240 | ) | (5,531,653 | ) | |||||||||
Beginning of period | 1,705,569 | 2,382,605 | 10,372,064 | 15,903,717 | ||||||||||||
End of period | $ | 1,741,782 | $ | 1,705,569 | $ | 7,197,824 | $ | 10,372,064 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements
30 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares Currency Hedged MSCI Switzerland ETF | ||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | (925 | ) | $ | 148,895 | |||
Net realized gain (loss) | (48,716) | 191,646 | ||||||
Net change in unrealized appreciation (depreciation) | (54,355 | ) | 762,888 | |||||
Net increase (decrease) in net assets resulting from operations | (103,996 | ) | 1,103,429 | |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (102,154 | ) | (340,012 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 1,550,696 | 1,214,499 | ||||||
NET ASSETS | ||||||||
Total increase in net assets | 1,344,546 | 1,977,916 | ||||||
Beginning of period | 7,333,624 | 5,355,708 | ||||||
End of period | $ | 8,678,170 | $ | 7,333,624 |
(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 | 31 |
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Eurozone ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.86 | $ | 29.76 | $ | 28.83 | $ | 24.73 | $ | 25.90 | $ | 24.87 | ||||||||||||
Net investment income(a) | 0.13 | 0.76 | 0.79 | 0.64 | 0.60 | 1.17 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.04 | ) | 0.24 | 1.03 | 4.07 | (0.93 | ) | 0.65 | ||||||||||||||||
Net increase (decrease) from investment operations | 0.09 | 1.00 | 1.82 | 4.71 | (0.33 | ) | 1.82 | |||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.90 | ) | (0.89 | ) | (0.61 | ) | (0.71 | ) | (0.63 | ) | ||||||||||||
From net realized gain | (0.83 | ) | (0.00 | )(d) | — | — | (0.13 | ) | (0.16 | ) | ||||||||||||||
Return of capital | — | — | — | (0.00 | )(d) | (0.00 | )(d) | (0.00 | )(d) | |||||||||||||||
Total distributions | (0.96 | ) | (0.90 | ) | (0.89 | ) | (0.61 | ) | (0.84 | ) | (0.79 | ) | ||||||||||||
Net asset value, end of period | $ | 28.99 | $ | 29.86 | $ | 29.76 | $ | 28.83 | $ | 24.73 | $ | 25.90 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.07 | %(e) | 3.41 | % | 6.36 | % | 19.13 | % | (1.02 | )% | 7.27 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||||
0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | |||||||||||||
Net investment income | 0.85 | %(g) | 2.63 | % | 2.61 | % | 2.32 | % | 2.42 | % | 4.15 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 868,323 | $ | 868,987 | $ | 1,660,448 | $ | 1,791,673 | $ | 1,345,405 | $ | 1,562,767 | ||||||||||||
Portfolio turnover rate(h)(i) | 6 | %(e) | 5 | % | 11 | % | 9 | % | 12 | % | 21 | % |
(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) | Rounds to less than $0.01. |
(e) | Not annualized. |
(f) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
See notes to financial statements
32 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Eurozone ETF | ||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.21 | $ | 27.64 | $ | 26.82 | $ | 24.03 | $ | 24.01 | $ | 23.63 | ||||||||||||
Net investment income(a) | (0.00 | ) | 0.55 | 0.53 | 0.74 | 0.31 | 0.99 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.18 | (1.25 | ) | 1.02 | 2.62 | 0.46 | 0.68 | |||||||||||||||||
Net increase (decrease) from investment operations | 0.18 | (0.70 | ) | 1.55 | 3.36 | 0.77 | 1.67 | |||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | — | (0.73 | ) | (0.73 | ) | (0.57 | ) | (0.54 | ) | (0.46 | ) | |||||||||||||
From net realized gain | — | — | — | — | (0.21 | ) | (0.83 | ) | ||||||||||||||||
Return of capital | — | (0.00 | )(d) | — | — | — | (0.00 | )(d) | ||||||||||||||||
Total distributions | — | (0.73 | ) | (0.73 | ) | (0.57 | ) | (0.75 | ) | (1.29 | ) | |||||||||||||
Net asset value, end of period | $ | 26.39 | $ | 26.21 | $ | 27.64 | $ | 26.82 | $ | 24.03 | $ | 24.01 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.65 | %(e) | (2.65 | )% | 5.83 | % | 13.88 | % | 3.50 | % | 7.00 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(f) | 0.53 | %(g) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
0.03 | %(g) | 0.04 | % | 0.06 | % | 0.05 | % | 0.05 | % | 0.05 | % | |||||||||||||
Net investment income (loss) | (0.03 | )%(g) | 2.09 | % | 1.87 | % | 2.75 | % | 1.33 | % | 3.69 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 141,164 | $ | 154,620 | $ | 330,346 | $ | 791,051 | $ | 492,701 | $ | 1,746,987 | ||||||||||||
Portfolio turnover rate(h)(i) | 3 | %(e) | 5 | % | 11 | % | 9 | % | 11 | % | 21 | % |
(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) | Rounds to less than $0.01. |
(e) | Not annualized. |
(f) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
See notes to financial statements
F i n a n c i a l S t a t e m e n t s | 33 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15(a) | |||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.06 | $ | 15.88 | $ | 16.81 | $ | 17.55 | $ | 23.52 | $ | 23.65 | ||||||||||||
Net investment income (loss)(b) | 0.20 | 0.80 | 0.51 | 0.51 | 0.41 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | 0.35 | 1.33 | (0.87 | ) | 3.71 | (4.93 | ) | (0.13 | ) | |||||||||||||||
Net increase (decrease) from investment operations | 0.55 | 2.13 | (0.36 | ) | 4.22 | (4.52 | ) | (0.13 | ) | |||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.95 | ) | (0.57 | ) | (0.48 | ) | (0.70 | ) | — | |||||||||||||
From net realized gain | — | — | — | (4.48 | ) | (0.75 | ) | — | ||||||||||||||||
Total distributions | (0.19 | ) | (0.95 | ) | (0.57 | ) | (4.96 | ) | (1.45 | ) | — | |||||||||||||
Net asset value, end of period | $ | 17.42 | $ | 17.06 | $ | 15.88 | $ | 16.81 | $ | 17.55 | $ | 23.52 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 3.11 | %(f) | 13.89 | % | (2.25 | )% | 31.21 | % | (19.68 | )% | (0.55 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.00 | %(h) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | %(h)(i) | ||||||||||||
Net investment income (loss) | 2.15 | %(h) | 4.96 | % | 2.92 | % | 3.15 | % | 1.90 | % | (0.00 | )%(h)(i) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,742 | $ | 1,706 | $ | 2,383 | $ | 5,885 | $ | 7,021 | $ | 85,845 | ||||||||||||
Portfolio turnover rate(j)(k) | 4 | %(f) | 8 | % | 11 | % | 12 | % | 12 | % | 0 | %(f)(l) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Rounds to less than 0.01%. |
(j) | Portfolio turnover rate excludes in-kind transactions. |
(k) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
(l) | Rounds to less than 1%. |
See notes to financial statements
34 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15 | (a) | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.74 | $ | 21.20 | $ | 22.80 | $ | 18.80 | $ | 22.73 | $ | 23.77 | ||||||||||||
Net investment income(b) | 0.49 | 0.78 | 0.67 | 0.94 | 0.80 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.08 | ) | (0.46 | ) | (1.55 | ) | 3.81 | (3.61 | ) | (1.04 | ) | |||||||||||||
Net increase (decrease) from investment operations | 0.41 | 0.32 | (0.88 | ) | 4.75 | (2.81 | ) | (1.04 | ) | |||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.58 | ) | (0.78 | ) | (0.72 | ) | (0.75 | ) | (0.81 | ) | — | |||||||||||||
From net realized gain | (0.31 | ) | — | |||||||||||||||||||||
Total distributions | (0.58 | ) | (0.78 | ) | (0.72 | ) | (0.75 | ) | (1.12 | ) | — | |||||||||||||
Net asset value, end of period | $ | 20.57 | $ | 20.74 | $ | 21.20 | $ | 22.80 | $ | 18.80 | $ | 22.73 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 1.74 | %(f) | 1.59 | % | (3.88 | )% | 25.70 | % | (12.51 | )% | (4.33 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.03 | %(h) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | %(h) | ||||||||||||
Net investment income (loss) | 4.48 | %(h) | 3.70 | % | 2.98 | % | 4.29 | % | 4.02 | % | (0.03 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 7,198 | $ | 10,372 | $ | 15,904 | $ | 53,592 | $ | 15,978 | $ | 56,825 | ||||||||||||
Portfolio turnover rate(i)(j) | 5 | %(f) | 6 | % | 12 | % | 9 | % | 15 | % | 0 | %(f)(k) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
(k) | Rounds to less than 1%. |
See notes to financial statements
F i n a n c i a l S t a t e m e n t s | 35 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||||||||||
Six Months Ended | Period From | |||||||||||||||||||||||
02/29/20 | Year Ended | Year Ended | Year Ended | Year Ended | 06/29/15 | (a) | ||||||||||||||||||
(unaudited) | 08/31/19 | 08/31/18 | 08/31/17 | 08/31/16 | to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.33 | $ | 26.78 | $ | 26.23 | $ | 23.38 | $ | 24.67 | $ | 24.64 | ||||||||||||
Net investment income (loss)(b) | (0.00 | ) | 0.64 | 0.61 | 0.66 | 0.41 | (0.00 | )(c) | ||||||||||||||||
Net realized and unrealized gain (loss)(d) | 0.01 | 3.46 | 1.39 | 3.00 | (0.27 | ) | 0.03 | |||||||||||||||||
Net increase from investment operations | 0.01 | 4.10 | 2.00 | 3.66 | 0.14 | 0.03 | ||||||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | — | (0.60 | ) | (0.63 | ) | (0.58 | ) | (0.61 | ) | — | ||||||||||||||
From net realized gain | (0.41 | ) | (0.95 | ) | (0.82 | ) | (0.23 | ) | (0.82 | ) | — | |||||||||||||
Return of capital | — | — | — | (0.00 | )(c) | |||||||||||||||||||
Total distributions | (0.41 | ) | (1.55 | ) | (1.45 | ) | (0.81 | ) | (1.43 | ) | — | |||||||||||||
Net asset value, end of period | $ | 28.93 | $ | 29.33 | $ | 26.78 | $ | 26.23 | $ | 23.38 | $ | 24.67 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (0.05 | )%(f) | 15.95 | % | 7.81 | % | 15.88 | % | 0.63 | % | 0.12 | %(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.03 | %(h) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(h) | ||||||||||||
Net investment income (loss) | (0.02 | )%(h) | 2.35 | % | 2.28 | % | 2.65 | % | 1.72 | % | (0.04 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 8,678 | $ | 7,334 | $ | 5,356 | $ | 6,558 | $ | 4,677 | $ | 3,701 | ||||||||||||
Portfolio turnover rate(i)(j) | 3 | %(f) | 12 | % | 14 | % | 11 | % | 19 | % | 1 | %(f) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund's financial highlights for its respective portfolio turnover rates. |
See notes to financial statements
36 | 2 0 2 0 I s h a r e s S e m i - A n 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”):
Diversification | |
iShares ETF | Classification |
Currency Hedged MSCI Eurozone | Diversified |
Currency Hedged MSCI Germany | Diversified |
Currency Hedged MSCI Italy | Diversified |
Currency Hedged MSCI Spain | Diversified |
Currency Hedged MSCI Switzerland | Diversified |
Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds should be read in conjunction with the Funds' financial statements.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions from the underlying funds, if any, are recognized on the ex-dividend date. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, each Fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds' maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
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 | 37 |
Notes to Financial Statements (unaudited) (continued)
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpo lated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party o r request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or
38 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Notes to Financial Statements (unaudited) (continued)
insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
Market Value of | Cash Collateral | Non-Cash Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received | (a) | Received | Net Amount | |||||||||||
Currency Hedged MSCI Spain | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 644,105 | $ | 644,105 | $ | — | $ | — | ||||||||
JPMorgan Securities LLC | 1,643,125 | 1,643,125 | — | — | ||||||||||||
SG Americas Securities LLC | 964,843 | 964,843 | — | — | ||||||||||||
$ | 3,252,073 | $ | 3,252,073 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 |
Forward Foreign Currency Exchange Contracts: Each Fund uses forward foreign currency exchange contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts ("NDFs") are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the fund.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds' investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
N o t e s t o F i n a n c i a l S t a t e m e n t s | 39 |
Notes to Financial Statements (unaudited) (continued)
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee |
Currency Hedged MSCI Eurozone | 0.62% |
Currency Hedged MSCI Germany | 0.53 |
Currency Hedged MSCI Italy | 0.62 |
Currency Hedged MSCI Spain | 0.62 |
Currency Hedged MSCI Switzerland | 0.62 |
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses.
For the iShares Currency Hedged MSCI Eurozone ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Eurozone ETF (“EZU”), after taking into account any fee waivers by EZU, plus 0.03%.
For the iShares Currency Hedged MSCI Germany ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.
For the iShares Currency Hedged MSCI Italy ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Italy ETF (“EWI”), after taking into account any fee waivers by EWI, plus 0.03%. BFA has also contractually agreed to an additional reduction in the investment advisory fee of 0.03% through December 31, 2020.
For the iShares Currency Hedged MSCI Spain ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Spain ETF (“EWP”), after taking into account any fee waivers by EWP, plus 0.03%.
For the iShares Currency Hedged MSCI Switzerland ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Switzerland ETF (“EWL”), after taking into account any fee waivers by EWL, plus 0.03%.
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% 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 statement of operations. For the six months ended
February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
Fees Paid | |||
iShares ETF | to BTC | ||
Currency Hedged MSCI Italy | . | $ | 1,559 |
Currency Hedged MSCI Spain | . | 3,892 | |
Currency Hedged MSCI Switzerland | . | 80 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
40 | 2 0 2 0 I s h a r e s S e m i - A n 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)
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
7. PURCHASES AND SALES
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Currency Hedged MSCI Eurozone | $ | 51,231,228 | $ | 59,125,999 | ||||
Currency Hedged MSCI Germany | 8,460,718 | 5,083,349 | ||||||
Currency Hedged MSCI Italy | 110,883 | 68,707 | ||||||
Currency Hedged MSCI Spain | 688,813 | 475,429 | ||||||
Currency Hedged MSCI Switzerland | 239,393 | 370,412 |
For the six months ended February 29, 2020, in-kind transactions were as follows:
In-kind | In-kind | |||||||
iShares ETF | Purchases | Sales | ||||||
Currency Hedged MSCI Eurozone | $ | 329,522,917 | $ | 305,536,826 | ||||
Currency Hedged MSCI Germany | 12,951,822 | 28,225,733 | ||||||
Currency Hedged MSCI Spain | — | 3,372,505 | ||||||
Currency Hedged MSCI Switzerland | 1,594,714 | — |
8. INCOME TAX INFORMATION
Each Fund is treated as an entity separate from the Trust's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds' financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
Currency Hedged MSCI Germany | $ | 37,920,803 | ||
Currency Hedged MSCI Italy | 345,558 | |||
Currency Hedged MSCI Spain | 3,951,881 |
As of February 29, 2020, 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:
Net Unrealized | ||||||||||||||||
Gross Unrealized | Gross Unrealized | Appreciation | ||||||||||||||
iShares ETF | Tax Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
Currency Hedged MSCI Eurozone | $ | 1,003,213,018 | $ | 8,377,843 | $ | (136,642,569 | ) | $ | (128,264,726 | ) | ||||||
Currency Hedged MSCI Germany | 174,332,003 | 1,299,040 | (33,437,730 | ) | (32,138,690 | ) | ||||||||||
Currency Hedged MSCI Italy | 1,915,360 | 27,885 | (185,320 | ) | (157,435 | ) | ||||||||||
Currency Hedged MSCI Spain | 12,562,046 | 107,663 | (2,068,370 | ) | (1,960,707 | ) | ||||||||||
Currency Hedged MSCI Switzerland | 7,931,293 | 918,303 | (153,541 | ) | 764,762 |
9. PRINCIPAL RISKS
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 41 |
Notes to Financial Statements (unaudited) (continued)
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
10. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended | Year Ended | |||||||||||||||
02/29/20 | 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Currency Hedged MSCI Eurozone | ||||||||||||||||
Shares sold | 10,700,000 | $ | 330,113,749 | 8,550,000 | $ | 242,699,585 | ||||||||||
Shares redeemed | (9,850,000 | ) | (306,668,249 | ) | (35,250,000 | ) | (981,522,161 | ) | ||||||||
Net increase(decrease) | 850,000 | 23,445,500 | (26,700,000 | ) | $ | (738,822,576 | ) | |||||||||
Currency Hedged MSCI Germany | ||||||||||||||||
Shares sold | 450,000 | 13,043,589 | 3,550,000 | $ | 92,522,500 | |||||||||||
Shares redeemed | (1,000,000 | ) | (28,170,414 | ) | (9,600,000 | ) | (247,102,132 | ) | ||||||||
Net decrease | (550,000 | ) | (15,126,825 | ) | (6,050,000 | ) | $ | (154,579,632 | ) | |||||||
Currency Hedged MSCI Italy | ||||||||||||||||
Shares redeemed | — | — | (50,000 | ) | $ | (746,187 | ) | |||||||||
Currency Hedged MSCI Spain | ||||||||||||||||
Shares redeemed | (150,000 | ) | (3,334,315 | ) | (250,000 | ) | $ | (5,223,688 | ) | |||||||
Currency Hedged MSCI Switzerland | ||||||||||||||||
Shares sold | 50,000 | 1,550,696 | 50,000 | $ | 1,214,499 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
42 | 2 0 2 0 I s h a r e s S e m i - A n 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)
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
12. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 43 |
Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares Currency Hedged MSCI Eurozone ETF, iShares Currency Hedged MSCI Germany ETF, iShares Currency Hedged MSCI Italy ETF, iShares Currency Hedged MSCI Spain ETF and iShares Currency Hedged MSCI Switzerland ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40Act Liquidity Risk Management Committee (the “Committee”).At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classification. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
44 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported 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.
Total Cumulative Distributions | % Breakdown of the Total Cumulative | |||||||||||||||||||||||||||||
for the Fiscal Year-to-Date | Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||||||||
Investment | Net Realized | Return of | Total Per | Investment | Net Realized | Return of | Total Per | |||||||||||||||||||||||
iShares ETF | Income | Capital Gains | Capital | Share | Income | Capital Gains | Capital | Share | ||||||||||||||||||||||
Currency Hedged MSCI Eurozone(a) | $ | 0.106962 | $ | 0.834421 | $ | 0.017507 | $ | 0.958890 | 11 | % | 87 | % | 2 | % | 100 | % | ||||||||||||||
Currency Hedged MSCI Spain(a) | 0.458144 | — | 0.117134 | 0.575278 | 80 | — | 20 | 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. |
N o t e s t o F i n a n c i a l S t a t e m e n t s | 45 |
Electronic Delivery
Shareholders can sign up for email 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds' Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
Complete Schedules of Portfolio Holdings
The complete schedules of investments in securities of unaffiliated issuers for certain iShares Funds in this report are also available without charge, upon request, by calling toll-free 1-800-474-2737.
46 | 2 0 2 0 I s h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Glossary of Terms Used in this Report
Counterparty Abbreviations | |
BNP | BNP Paribas SA |
BOA | Bank of America N.A. |
CITI | Citibank N.A. |
DB | Deutsche Bank AG London |
JPM | JPMorgan Chase Bank N.A. |
MS | Morgan Stanley & Co. International PLC |
SSB | State Street Bank and Trust Co. |
UBS | UBS AG |
Currency Abbreviations | |
CHF | Swiss Franc |
EUR | Euro |
USD | United States Dollar |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T | 47 |
Schedule of Investments (unaudited) | iShares® MSCI Eurozone ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Austria — 0.6% | ||||||||
ANDRITZ AG | 86,126 | $ | 3,019,794 | |||||
Erste Group Bank AG | 353,149 | 12,037,046 | ||||||
OMV AG | 174,021 | 7,235,153 | ||||||
Raiffeisen Bank International AG | 175,839 | 3,607,081 | ||||||
Verbund AG | 80,534 | 3,793,274 | ||||||
voestalpine AG | 137,762 | 2,993,201 | ||||||
32,685,549 | ||||||||
Belgium — 2.8% | ||||||||
Ageas | 211,171 | 9,714,515 | ||||||
Anheuser-Busch InBev SA/NV | 897,625 | 50,019,570 | ||||||
Colruyt SA | 65,322 | 3,000,707 | ||||||
Galapagos NV(a) | 53,360 | 10,978,266 | ||||||
Groupe Bruxelles Lambert SA | 95,093 | 8,552,765 | ||||||
KBC Group NV | 294,570 | 19,420,690 | ||||||
Proximus SADP | 177,100 | 4,349,812 | ||||||
Solvay SA | 87,594 | 7,897,541 | ||||||
Telenet Group Holding NV | 55,871 | 2,118,544 | ||||||
UCB SA | 148,680 | 13,646,810 | ||||||
Umicore SA | 232,486 | 9,645,482 | ||||||
139,344,702 | ||||||||
Finland — 3.1% | ||||||||
Elisa OYJ | 167,459 | 9,554,118 | ||||||
Fortum OYJ | 525,080 | 11,120,202 | ||||||
Kone OYJ, Class B | 400,549 | 22,439,128 | ||||||
Metso OYJ | 123,436 | 3,961,888 | ||||||
Neste OYJ | 497,884 | 19,502,472 | ||||||
Nokia OYJ | 6,640,310 | 25,127,989 | ||||||
Nokian Renkaat OYJ | 147,865 | 3,829,917 | ||||||
Orion OYJ, Class B | 123,220 | 4,865,867 | ||||||
Sampo OYJ, Class A | 522,144 | 21,152,483 | ||||||
Stora Enso OYJ, Class R | 686,505 | 8,076,317 | ||||||
UPM-Kymmene OYJ | 629,660 | 19,179,449 | ||||||
Wartsila OYJ Abp | 520,217 | 5,373,748 | ||||||
154,183,578 | ||||||||
France — 34.9% | ||||||||
Accor SA | 207,980 | 7,463,643 | ||||||
Aeroports de Paris | 34,802 | 5,114,939 | ||||||
Air Liquide SA | 556,593 | 75,139,755 | ||||||
Airbus SE | 687,601 | 81,647,398 | ||||||
Alstom SA | 225,572 | 11,023,709 | ||||||
Amundi SA(b) | 71,968 | 5,110,791 | ||||||
Arkema SA | 81,127 | 7,580,030 | ||||||
Atos SE | 116,033 | 8,577,816 | ||||||
AXA SA | 2,275,690 | 52,381,861 | ||||||
BioMerieux | 48,694 | 4,458,217 | ||||||
BNP Paribas SA | 1,325,145 | 63,733,667 | ||||||
Bollore SA | 1,035,675 | 3,531,225 | ||||||
Bouygues SA | 262,798 | 10,242,025 | ||||||
Bureau Veritas SA | 341,179 | 8,263,633 | ||||||
Capgemini SE | 187,243 | 20,407,273 | ||||||
Carrefour SA | 711,444 | 12,226,339 | ||||||
Casino Guichard Perrachon SA(c) | 64,647 | 2,498,894 | ||||||
Cie. de Saint-Gobain | 579,592 | 20,118,223 | ||||||
Cie. Generale des Etablissements Michelin SCA | 201,247 | 21,274,785 | ||||||
CNP Assurances | 203,171 | 3,157,900 | ||||||
Covivio | 56,751 | 5,984,459 | ||||||
Credit Agricole SA | 1,363,106 | 16,185,849 | ||||||
Danone SA | 727,258 | 50,903,123 |
Security | Shares | Value | ||||||
France (continued) | ||||||||
Dassault Aviation SA | 2,942 | $ | 3,034,509 | |||||
Dassault Systemes SE | 154,621 | 24,117,760 | ||||||
Edenred | 283,099 | 14,668,455 | ||||||
Eiffage SA | 92,549 | 9,802,097 | ||||||
Electricite de France SA | 717,514 | 9,922,846 | ||||||
Engie SA | 2,154,809 | 35,575,246 | ||||||
EssilorLuxottica SA | 333,784 | 45,133,989 | ||||||
Eurazeo SE | 46,494 | 3,094,922 | ||||||
Eurofins Scientific SE(c) | 13,597 | 6,792,720 | ||||||
Eutelsat Communications SA | 206,508 | 2,776,505 | ||||||
Faurecia SE | 89,301 | 4,010,028 | ||||||
Gecina SA | 53,830 | 9,502,118 | ||||||
Getlink SE | 517,556 | 8,288,864 | ||||||
Hermes International | 37,314 | 25,822,157 | ||||||
ICADE | 35,423 | 3,511,662 | ||||||
Iliad SA | 17,573 | 2,437,976 | ||||||
Ingenico Group SA | 71,516 | 10,051,333 | ||||||
Ipsen SA | 44,824 | 2,885,283 | ||||||
JCDecaux SA | 100,896 | 2,305,247 | ||||||
Kering SA | 89,241 | 49,581,928 | ||||||
Klepierre SA | 233,682 | 6,935,707 | ||||||
Legrand SA | 314,474 | 23,841,845 | ||||||
L'Oreal SA | 296,010 | 78,361,651 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 327,541 | 133,427,119 | ||||||
Natixis SA | 1,120,537 | 4,513,540 | ||||||
Orange SA | 2,353,579 | 31,514,661 | ||||||
Pernod Ricard SA | 249,973 | 40,198,915 | ||||||
Peugeot SA | 690,894 | 13,284,759 | ||||||
Publicis Groupe SA | 250,012 | 9,606,403 | ||||||
Remy Cointreau SA | 26,917 | 2,697,986 | ||||||
Renault SA | 227,349 | 6,616,634 | ||||||
Safran SA | 385,599 | 52,563,931 | ||||||
Sanofi | 1,327,722 | 122,406,514 | ||||||
Sartorius Stedim Biotech | 32,364 | 6,103,974 | ||||||
Schneider Electric SE | 651,358 | 64,751,299 | ||||||
SCOR SE | 187,559 | 6,695,784 | ||||||
SEB SA | 26,911 | 3,523,597 | ||||||
SES SA | 433,477 | 4,942,465 | ||||||
Societe Generale SA | 953,455 | 26,800,978 | ||||||
Sodexo SA(c) | 104,459 | 9,952,804 | ||||||
STMicroelectronics NV | 804,268 | 21,564,963 | ||||||
Suez | 400,291 | 6,278,909 | ||||||
Teleperformance | 69,292 | 16,729,807 | ||||||
Thales SA | 126,029 | 12,570,035 | ||||||
TOTAL SA | 2,827,831 | 119,217,106 | ||||||
Ubisoft Entertainment SA(a). | 106,586 | 7,888,807 | ||||||
Unibail-Rodamco-Westfield | 162,865 | 19,499,991 | ||||||
Valeo SA | 283,540 | 7,094,932 | ||||||
Veolia Environnement SA | 632,411 | 18,012,836 | ||||||
Vinci SA | 606,391 | 60,600,866 | ||||||
Vivendi SA | 976,710 | 24,697,393 | ||||||
Wendel SA | 32,049 | 3,897,106 | ||||||
Worldline SA(a)(b) | 150,747 | 11,400,733 | ||||||
1,748,535,249 | ||||||||
Germany — 25.1% | ||||||||
adidas AG | 212,529 | 58,491,500 | ||||||
Allianz SE, Registered | 491,730 | 105,219,398 | ||||||
Aroundtown SA | 1,436,612 | 12,352,944 | ||||||
BASF SE | 1,083,540 | 63,176,566 | ||||||
Bayer AG, Registered | 1,157,983 | 82,946,208 |
S C H E D U L E O F I N V E S T M E N T S
Schedule of Investments (unaudited) (continued) | iShares® MSCI Eurozone ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Germany (continued) | ||||||||
Bayerische Motoren Werke AG | 390,613 | $ | 25,285,019 | |||||
Beiersdorf AG | 119,226 | 12,428,461 | ||||||
Brenntag AG | 181,946 | 8,076,283 | ||||||
Carl Zeiss Meditec AG, Bearer | 47,859 | 4,981,074 | ||||||
Commerzbank AG | 1,175,956 | 6,731,197 | ||||||
Continental AG | 130,111 | 14,523,569 | ||||||
Covestro AG(b) | 204,738 | 7,756,607 | ||||||
Daimler AG, Registered | 1,070,648 | 44,149,027 | ||||||
Delivery Hero SE(a)(b) | 133,895 | 10,001,230 | ||||||
Deutsche Bank AG, Registered | 2,310,141 | 19,993,542 | ||||||
Deutsche Boerse AG | 223,597 | 34,888,907 | ||||||
Deutsche Lufthansa AG, Registered | 282,376 | 3,625,955 | ||||||
Deutsche Post AG, Registered | 1,167,076 | 34,767,141 | ||||||
Deutsche Telekom AG, Registered | 3,925,947 | 63,634,587 | ||||||
Deutsche Wohnen SE | 422,019 | 16,901,639 | ||||||
E.ON SE | 2,648,647 | 30,345,098 | ||||||
Evonik Industries AG | 247,182 | 6,084,696 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 48,943 | 3,061,175 | ||||||
Fresenius Medical Care AG & Co. KGaA | 251,323 | 19,136,872 | ||||||
Fresenius SE & Co. KGaA | 493,036 | 22,970,913 | ||||||
GEA Group AG | 179,743 | 4,726,681 | ||||||
Hannover Rueck SE | 71,340 | 12,616,507 | ||||||
HeidelbergCement AG | 175,682 | 10,389,926 | ||||||
Henkel AG & Co. KGaA | 121,860 | 10,286,916 | ||||||
HOCHTIEF AG | 29,494 | 2,881,773 | ||||||
Infineon Technologies AG | 1,475,014 | 30,450,577 | ||||||
KION Group AG | 77,203 | 4,087,534 | ||||||
Knorr-Bremse AG | 57,520 | 5,812,188 | ||||||
LANXESS AG | 98,502 | 5,118,918 | ||||||
Merck KGaA | 152,118 | 18,221,597 | ||||||
METRO AG | 212,984 | 2,452,989 | ||||||
MTU Aero Engines AG | 61,398 | 14,884,584 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered | 170,255 | 43,144,717 | ||||||
Puma SE | 97,306 | 7,396,493 | ||||||
QIAGEN NV(a) | 268,460 | 9,790,341 | ||||||
RWE AG | 688,486 | 23,565,286 | ||||||
SAP SE | 1,157,976 | 141,901,903 | ||||||
Siemens AG, Registered | 901,353 | 92,276,471 | ||||||
Siemens Healthineers AG(b) | 176,057 | 7,088,701 | ||||||
Symrise AG | 152,181 | 14,733,761 | ||||||
Telefonica Deutschland Holding AG | 1,052,589 | 2,729,826 | ||||||
thyssenkrupp AG(a)(c) | 474,523 | 4,535,827 | ||||||
Uniper SE | 236,443 | 6,944,932 | ||||||
United Internet AG, Registered(d) | 121,001 | 3,589,994 | ||||||
Volkswagen AG | 38,403 | 6,424,587 | ||||||
Vonovia SE | 607,848 | 32,436,401 | ||||||
Wirecard AG(c) | 138,176 | 17,447,040 | ||||||
Zalando SE(a)(b) | 163,575 | 7,102,707 | ||||||
1,254,568,785 | ||||||||
Ireland — 1.8% | ||||||||
AIB Group PLC | 971,164 | 2,238,093 | ||||||
Bank of Ireland Group PLC | 1,137,406 | 4,192,930 | ||||||
CRH PLC(a) | 931,540 | 31,178,421 | ||||||
Flutter Entertainment PLC | 93,244 | 9,830,640 | ||||||
Irish Bank Resolution Corp. Ltd.(a)(e) | 446,666 | 5 | ||||||
Kerry Group PLC, Class A | 187,041 | 23,627,339 | ||||||
Kingspan Group PLC | 180,894 | 11,336,003 |
Security | Shares | Value | ||||||
Ireland (continued) | ||||||||
Smurfit Kappa Group PLC | 265,647 | $ | 8,818,192 | |||||
91,221,623 | ||||||||
Italy — 6.9% | ||||||||
Assicurazioni Generali SpA | 1,296,380 | 23,154,373 | ||||||
Atlantia SpA | 584,595 | 12,448,042 | ||||||
CNH Industrial NV | 1,195,280 | 10,963,173 | ||||||
Davide Campari-Milano SpA | 680,270 | 5,634,207 | ||||||
Enel SpA | 9,582,999 | 79,748,324 | ||||||
Eni SpA | 2,994,052 | 36,696,602 | ||||||
Ferrari NV | 142,202 | 22,110,356 | ||||||
FinecoBank Banca Fineco SpA | 725,940 | 7,570,597 | ||||||
Intesa Sanpaolo SpA | 17,518,820 | 42,306,926 | ||||||
Leonardo SpA | 480,806 | 4,878,968 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 735,950 | 6,620,829 | ||||||
Moncler SpA | 213,120 | 8,245,058 | ||||||
Pirelli & C SpA(b). | 473,104 | 2,210,203 | ||||||
Poste Italiane SpA(b) | 611,796 | 6,460,868 | ||||||
Prysmian SpA | 285,437 | 6,703,446 | ||||||
Recordati SpA | 123,849 | 5,262,100 | ||||||
Snam SpA | 2,399,960 | 11,786,608 | ||||||
Telecom Italia SpA/Milano(a) | 10,788,723 | 5,926,620 | ||||||
Tenaris SA | 553,700 | 4,967,872 | ||||||
Terna Rete Elettrica Nazionale SpA | 1,664,108 | 10,949,354 | ||||||
UniCredit SpA | 2,363,969 | 29,960,735 | ||||||
344,605,261 | ||||||||
Netherlands — 12.7% | ||||||||
ABN AMRO Bank NV, CVA(b) | 500,301 | 6,836,470 | ||||||
Adyen NV(a)(b) | 12,213 | 10,694,729 | ||||||
Aegon NV | 2,098,347 | 7,078,435 | ||||||
AerCap Holdings NV(a)(c) | 145,083 | 7,555,923 | ||||||
Akzo Nobel NV | 238,425 | 18,895,930 | ||||||
Altice Europe NV(a) | 727,976 | 3,872,681 | ||||||
ArcelorMittal SA | 785,621 | 11,077,020 | ||||||
ASML Holding NV | 501,531 | 136,679,915 | ||||||
EXOR NV | 127,636 | 8,984,126 | ||||||
Heineken Holding NV | 136,289 | 11,946,587 | ||||||
Heineken NV | 304,921 | 30,218,320 | ||||||
ING Groep NV | 4,587,695 | 43,383,781 | ||||||
Just Eat Takeaway(a)(b) | 135,484 | 11,801,613 | ||||||
Koninklijke Ahold Delhaize NV | 1,297,426 | 30,184,828 | ||||||
Koninklijke DSM NV | 213,765 | 23,891,927 | ||||||
Koninklijke KPN NV | 4,225,185 | 10,215,178 | ||||||
Koninklijke Philips NV | 1,068,025 | 45,425,208 | ||||||
Koninklijke Vopak NV | 83,496 | 3,957,552 | ||||||
NN Group NV | 364,461 | 12,346,549 | ||||||
NXP Semiconductors NV | 328,121 | 37,304,076 | ||||||
Prosus NV(a). | 573,726 | 40,125,415 | ||||||
Randstad NV | 139,837 | 7,174,838 | ||||||
Unilever NV | 1,729,064 | 90,434,681 | ||||||
Wolters Kluwer NV | 321,806 | 23,443,303 | ||||||
633,529,085 | ||||||||
Portugal — 0.5% | ||||||||
EDP - Energias de Portugal SA | 3,019,558 | 13,997,033 | ||||||
Galp Energia SGPS SA | 592,878 | 8,055,921 | ||||||
Jeronimo Martins SGPS SA | 299,410 | 5,230,944 | ||||||
27,283,898 | ||||||||
Spain — 8.9% | ||||||||
ACS Actividades de Construccion y Servicios SA | 296,535 | 8,745,817 | ||||||
Aena SME SA(b) | 79,836 | 12,715,895 | ||||||
2 0 2 0 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S
Schedule of Investments (unaudited) (continued) | iShares® MSCI Eurozone ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Spain (continued) | ||||||||
Amadeus IT Group SA | 507,611 | $ | 35,406,655 | |||||
Banco Bilbao Vizcaya Argentaria SA | 7,847,054 | 37,361,629 | ||||||
Banco de Sabadell SA | 6,629,896 | 5,761,999 | ||||||
Banco Santander SA | 19,579,448 | 71,553,915 | ||||||
Bankia SA | 1,422,678 | 2,234,718 | ||||||
Bankinter SA | 798,965 | 4,686,506 | ||||||
CaixaBank SA | 4,233,918 | 10,794,381 | ||||||
Cellnex Telecom SA(b) | 294,767 | 14,204,523 | ||||||
Enagas SA | 287,485 | 7,389,434 | ||||||
Endesa SA | 375,576 | 9,583,567 | ||||||
Ferrovial SA | 578,206 | 16,437,169 | ||||||
Grifols SA | 351,958 | 11,211,636 | ||||||
Iberdrola SA | 7,253,809 | 82,229,182 | ||||||
Industria de Diseno Textil SA | 1,286,926 | 39,765,227 | ||||||
Mapfre SA | 1,281,337 | 2,850,156 | ||||||
Naturgy Energy Group SA | 348,398 | 8,048,132 | ||||||
Red Electrica Corp. SA | 516,056 | 9,832,213 | ||||||
Repsol SA | 1,669,412 | 18,576,040 | ||||||
Siemens Gamesa Renewable Energy SA | 281,985 | 4,499,065 | ||||||
Telefonica SA | 5,512,735 | 32,457,275 | ||||||
446,345,134 | ||||||||
United Kingdom — 0.6% | ||||||||
Coca-Cola European Partners PLC | 272,916 | 13,907,799 | ||||||
Fiat Chrysler Automobiles NV | 1,280,599 | 15,813,824 | ||||||
29,721,623 | ||||||||
Total Common Stocks — 97.9% | �� | |||||||
(Cost: $6,044,549,851) | 4,902,024,487 | |||||||
Preferred Stocks | ||||||||
Germany — 1.6% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS | 66,086 | 3,376,987 | ||||||
Fuchs Petrolub SE, Preference Shares, NVS | 82,434 | 3,125,772 | ||||||
Henkel AG & Co. KGaA, Preference Shares, NVS | 209,792 | 19,283,717 | ||||||
Porsche Automobil Holding SE, Preference Shares, NVS | 179,670 | 11,107,333 | ||||||
Sartorius AG, Preference Shares, NVS | 41,882 | 9,523,091 | ||||||
Volkswagen AG, Preference Shares, NVS | 218,943 | 35,733,172 | ||||||
82,150,072 | ||||||||
Italy — 0.1% | ||||||||
Telecom Italia SpA/Milano, Preference Shares, NVS | 7,020,666 | 3,885,229 | ||||||
Total Preferred Stocks — 1.7% | ||||||||
(Cost: $127,959,469) | 86,035,301 |
Security | Shares | Value | ||||||
Rights | ||||||||
Spain — 0.0% | ||||||||
ACS Actividades de Construccion y Servicios SA, (Expires 03/03/20)(a) | 311,704 | $ | 136,374 | |||||
Total Rights — 0.0% | ||||||||
(Cost: $151,473) | 136,374 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.0% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(f)(g)(h) | 46,783,147 | 46,815,895 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(f)(g) | 2,026,000 | 2,026,000 | ||||||
48,841,895 | ||||||||
Total Short-Term Investments — 1.0% | ||||||||
(Cost: $48,827,828) | 48,841,895 | |||||||
Total Investments in Securities — 100.6% | ||||||||
(Cost: $6,221,488,621) | 5,037,038,057 | |||||||
Other Assets, Less Liabilities — (0.6)%. | (30,059,113 | ) | ||||||
Net Assets — 100.0% | $ | 5,006,978,944 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | All or a portion of this security is on loan. |
(d) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(e) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(f) | Affiliate of the Fund. |
(g) | Annualized 7-day yield as of period-end. |
(h) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S
Schedule of Investments (unaudited) (continued) | iShares® MSCI Eurozone ETF |
February 29, 2020
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss) (a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 40,300,373 | 6,482,774 | 46,783,147 | $ | 46,815,895 | $ | 423,530 | (b) | $ | 9,081 | $ | 3,030 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,795,000 | (769,000 | ) | 2,026,000 | 2,026,000 | 20,085 | — | — | ||||||||||||||||||||
$ | 48,841,895 | $ | 443,615 | $ | 9,081 | $ | 3,030 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 497 | 03/20/20 | $ | 18,092 | $ | (1,814,750 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 1,8 14,750 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 2,466,209 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (2,098,132 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 21,604,011 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
2 0 2 0 I s h a r e s S e m I - A n n u a l R e p o r t T o S h a r e h o l d e r s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Eurozone ETF |
February 29, 2020
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 4,902,024,482 | $ | — | $ | 5 | $ | 4,902,024,487 | ||||||||
Preferred Stocks | 86,035,301 | — | — | 86,035,301 | ||||||||||||
Rights | 136,374 | — | — | 136,374 | ||||||||||||
Money Market Funds | 48,841,895 | — | — | 48,841,895 | ||||||||||||
$ | 5,037,038,052 | $ | — | $ | 5 | $ | 5,037,038,057 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (1,814,750 | ) | $ | — | $ | — | $ | (1,814,750 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited) | iShares® MSCI Germany ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.1% | ||||||||
MTU Aero Engines AG | 91,897 | $ | 22,278,391 | |||||
Air Freight & Logistics — 2.6% | ||||||||
Deutsche Post AG, Registered | 1,743,245 | 51,931,189 | ||||||
Airlines — 0.3% | ||||||||
Deutsche Lufthansa AG, Registered | 421,787 | 5,416,115 | ||||||
Auto Components — 1.1% | ||||||||
Continental AG | 194,323 | 21,691,199 | ||||||
Automobiles — 5.6% | ||||||||
Bayerische Motoren Werke AG | 583,479 | 37,769,551 | ||||||
Daimler AG, Registered | 1,602,542 | 66,082,101 | ||||||
Volkswagen AG | 57,417 | 9,605,513 | ||||||
113,457,165 | ||||||||
Banks — 0.5% | ||||||||
Commerzbank AG | 1,773,958 | 10,154,173 | ||||||
Capital Markets — 4.1% | ||||||||
Deutsche Bank AG, Registered | 3,468,468 | 30,018,497 | ||||||
Deutsche Boerse AG | 334,824 | 52,244,187 | ||||||
82,262,684 | ||||||||
Chemicals — 7.2% | ||||||||
BASF SE | 1,618,606 | 94,373,968 | ||||||
Covestro AG(a) | 306,824 | 11,624,189 | ||||||
Evonik Industries AG | 369,569 | 9,097,405 | ||||||
LANXESS AG | 146,397 | 7,607,908 | ||||||
Symrise AG | 227,106 | 21,987,802 | ||||||
144,691,272 | ||||||||
Construction & Engineering — 0.2% | ||||||||
HOCHTIEF AG | 44,202 | 4,318,849 | ||||||
Construction Materials — 0.8% | ||||||||
HeidelbergCement AG | 262,244 | 15,509,249 | ||||||
Diversified Telecommunication Services — 5.2% | ||||||||
Deutsche Telekom AG, Registered | 5,873,699 | 95,205,160 | ||||||
Telefonica Deutschland Holding AG | 1,563,738 | 4,055,460 | ||||||
United Internet AG, Registered(b) | 180,820 | 5,364,771 | ||||||
104,625,391 | ||||||||
Food & Staples Retailing — 0.2% | ||||||||
METRO AG | 321,825 | 3,706,537 | ||||||
Health Care Equipment & Supplies — 0.9% | ||||||||
Carl Zeiss Meditec AG, Bearer | 71,413 | 7,432,530 | ||||||
Siemens Healthineers AG(a) | 265,031 | 10,671,121 | ||||||
18,103,651 | ||||||||
Health Care Providers & Services — 3.1% | ||||||||
Fresenius Medical Care AG & Co. KGaA | 375,426 | 28,586,636 | ||||||
Fresenius SE & Co. KGaA | 736,341 | 34,306,674 | ||||||
62,893,310 | ||||||||
Household Products — 0.8% | ||||||||
Henkel AG & Co. KGaA | 183,189 | 15,464,056 | ||||||
Independent Power and Renewable Electricity Producers — 0.5% | �� | |||||||
Uniper SE | 355,783 | 10,450,252 | ||||||
Industrial Conglomerates — 6.9% | ||||||||
Siemens AG, Registered | 1,348,137 | 138,016,209 |
Security | Shares | Value | ||||||
Insurance — 12.0% | ||||||||
Allianz SE, Registered | 735,216 | $ | 157,320,043 | |||||
Hannover Rueck SE | 106,254 | 18,791,061 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered | 254,320 | 64,447,825 | ||||||
240,558,929 | ||||||||
Internet & Direct Marketing Retail — 1.3% | ||||||||
Delivery Hero SE(a)(c) | 199,376 | 14,892,306 | ||||||
Zalando SE(a)(c). | 243,812 | 10,586,735 | ||||||
25,479,041 | ||||||||
IT Services — 1.3% | ||||||||
Wirecard AG(d) | 207,014 | 26,138,993 | ||||||
Life Sciences Tools & Services — 0.7% | ||||||||
QIAGEN NV(c) | 399,974 | 14,586,463 | ||||||
Machinery — 1.1% | ||||||||
GEA Group AG | 272,051 | 7,154,094 | ||||||
KION Group AG | 115,396 | 6,109,672 | ||||||
Knorr-Bremse AG | 85,850 | 8,674,832 | ||||||
21,938,598 | ||||||||
Metals & Mining — 0.3% | ||||||||
thyssenkrupp AG(c)(d) | 716,024 | 6,844,265 | ||||||
Multi-Utilities — 4.0% | ||||||||
E.ON SE | 3,956,519 | 45,329,165 | ||||||
RWE AG | 1,029,183 | 35,226,558 | ||||||
80,555,723 | ||||||||
Personal Products — 0.9% | ||||||||
Beiersdorf AG | 177,632 | 18,516,870 | ||||||
Pharmaceuticals — 7.5% | ||||||||
Bayer AG, Registered | 1,731,401 | 124,020,083 | ||||||
Merck KGaA. | 227,910 | 27,300,412 | ||||||
151,320,495 | ||||||||
Real Estate Management & Development — 4.6% | ||||||||
Aroundtown SA | 2,146,257 | 18,454,943 | ||||||
Deutsche Wohnen SE. | 633,906 | 25,387,602 | ||||||
Vonovia SE. | 907,846 | 48,445,099 | ||||||
92,287,644 | ||||||||
Semiconductors & Semiconductor Equipment — 2.3% | ||||||||
Infineon Technologies AG | 2,203,262 | 45,484,719 | ||||||
Software — 10.5% | ||||||||
SAP SE | 1,731,970 | 212,240,874 | ||||||
Textiles, Apparel & Luxury Goods — 4.9% | ||||||||
adidas AG | 317,869 | 87,482,812 | ||||||
Puma SE | 146,736 | 11,153,802 | ||||||
98,636,614 | ||||||||
Trading Companies & Distributors — 0.6% | ||||||||
Brenntag AG. | 272,728 | 12,105,946 | ||||||
Transportation Infrastructure — 0.2% | ||||||||
Fraport AG Frankfurt Airport Services Worldwide | 74,125 | 4,636,202 | ||||||
Total Common Stocks — 93.3% | ||||||||
(Cost: $2,483,449,433) | 1,876,301,068 |
2 0 2 0 I s h a r e s S e m I - A n n u a l R e p o r t T o S h a r e h o l d e r s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Germany ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Preferred Stocks | ||||||||
Automobiles — 3.8% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS | 99,332 | $ | 5,075,853 | |||||
Porsche Automobil Holding SE, Preference Shares, NVS | 269,839 | 16,681,648 | ||||||
Volkswagen AG, Preference Shares, NVS | 327,045 | 53,376,246 | ||||||
75,133,747 | ||||||||
Chemicals — 0.2% | ||||||||
Fuchs Petrolub SE, Preference Shares, NVS | 124,140 | 4,707,201 | ||||||
Health Care Equipment & Supplies — 0.7% | ||||||||
Sartorius AG, Preference Shares, NVS | 62,993 | 14,323,290 | ||||||
Household Products — 1.4% | ||||||||
Henkel AG & Co. KGaA, Preference Shares, NVS | 314,214 | 28,882,006 | ||||||
Total Preferred Stocks — 6.1% | ||||||||
(Cost: $170,836,181) | 123,046,244 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(e)(f)(g) | 35,141,393 | 35,165,992 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(e)(f) | 1,300,000 | $ | 1,300,000 | |||||
36,465,992 | ||||||||
Total Short-Term Investments — 1.8% | ||||||||
(Cost: $36,454,211) | 36,465,992 | |||||||
Total Investments in Securities — 101.2% | ||||||||
(Cost: $2,690,739,825) | 2,035,813,304 | |||||||
Other Assets, Less Liabilities — (1.2)% | (24,939,347 | ) | ||||||
Net Assets — 100.0% | $ | 2,010,873,957 |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(c) | Non-income producing security. |
(d) | All or a portion of this security is on loan. |
(e) | Affiliate of the Fund. |
(f) | Annualized 7-day yield as of period-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss) (a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 39,070,907 | (3,929,514 | ) | 35,141,393 | $ | 35,165,992 | $ | 229,680 | (b) | $ | 180 | $ | 7,521 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 839,000 | 461,000 | 1,300,000 | 1,300,000 | 8,856 | — | — | |||||||||||||||||||||
$ | 36,465,992 | $ | 238,536 | $ | 180 | $ | 7,521 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
DAX Index | 34 | 03/20/20 | $ | 11,035 | $ | (1,546,693 | ) | |||||||||
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Germany ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 1,546,693 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts. | $ | 852,066 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts. | $ | (1,378,783 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 11,958,493 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 1,876,301,068 | $ | — | $ | — | $ | 1,876,301,068 | ||||||||
Preferred Stocks | 123,046,244 | — | — | 123,046,244 | ||||||||||||
Money Market Funds | 36,465,992 | — | — | 36,465,992 | ||||||||||||
$ | 2,035,813,304 | $ | — | $ | — | $ | 2,035,813,304 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (1,546,693 | ) | $ | — | $ | — | (1,546,693 | ) | |||||||
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
2 0 2 0 I s h a r e s S e m I - A n n u a l R e p o r t T o S h a r e h o l d e r s
Schedule of Investments (unaudited) | iShares® MSCI Italy ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.5% | ||||||||
Leonardo SpA | 449,570 | $ | 4,562,002 | |||||
Auto Components — 1.2% | ||||||||
Pirelli & C SpA(a) | 770,671 | 3,600,348 | ||||||
Automobiles — 9.2% | ||||||||
Ferrari NV | 87,650 | 13,628,308 | ||||||
Fiat Chrysler Automobiles NV | 1,183,805 | 14,618,537 | ||||||
28,246,845 | ||||||||
Banks — 20.6% | ||||||||
FinecoBank Banca Fineco SpA | 533,238 | 5,560,969 | ||||||
Intesa Sanpaolo SpA | 12,530,920 | 30,261,440 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 786,959 | 7,079,721 | ||||||
UniCredit SpA | 1,602,297 | 20,307,371 | ||||||
63,209,501 | ||||||||
Beverages — 2.1% | ||||||||
Davide Campari-Milano SpA | 762,298 | 6,313,589 | ||||||
Diversified Financial Services — 2.9% | ||||||||
EXOR NV | 128,749 | 9,062,469 | ||||||
Diversified Telecommunication Services — 2.2% | ||||||||
Telecom Italia SpA/Milano(b) | 12,263,718 | 6,736,885 | ||||||
Electric Utilities — 23.2% | ||||||||
Enel SpA | 7,280,986 | 60,591,306 | ||||||
Terna Rete Elettrica Nazionale SpA | 1,627,791 | 10,710,398 | ||||||
71,301,704 | ||||||||
Electrical Equipment — 2.4% | ||||||||
Prysmian SpA | 308,565 | 7,246,604 | ||||||
Energy Equipment & Services — 1.9% | ||||||||
Tenaris SA | 647,879 | 5,812,859 | ||||||
Gas Utilities — 3.7% | ||||||||
Snam SpA | 2,321,345 | 11,400,516 | ||||||
Insurance — 6.8% | ||||||||
Assicurazioni Generali SpA | 769,775 | 13,748,791 | ||||||
Poste Italiane SpA(a) | 663,635 | 7,008,314 | ||||||
20,757,105 | ||||||||
Machinery — 3.5% | ||||||||
CNH Industrial NV | 1,182,974 | 10,850,302 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels — 8.3% | ||||||||
Eni SpA | 2,086,446 | $ | 25,572,528 | |||||
Pharmaceuticals — 2.0% | ||||||||
Recordati SpA | 144,397 | 6,135,144 | ||||||
Textiles, Apparel & Luxury Goods — 2.8% | ||||||||
Moncler SpA | 222,196 | 8,596,185 | ||||||
Transportation Infrastructure — 3.9% | ||||||||
Atlantia SpA | 557,200 | 11,864,708 | ||||||
Total Common Stocks — 98.2% | ||||||||
(Cost: $345,715,729) | 301,269,294 | |||||||
Preferred Stocks | ||||||||
Diversified Telecommunication Services — 1.7% | ||||||||
Telecom Italia SpA/Milano, Preference Shares, NVS. | 9,324,750 | 5,160,307 | ||||||
Total Preferred Stocks — 1.7% | ||||||||
(Cost: $6,755,316) | 5,160,307 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (c)(d) | 175,000 | 175,000 | ||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $175,000) | 175,000 | |||||||
Total Investments in Securities — 100.0% | ||||||||
(Cost: $352,646,045) | 306,604,601 | |||||||
Other Assets, Less Liabilities — 0.0% | 36,790 | |||||||
Net Assets — 100.0% | $ | 306,641,391 |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Non-income producing security. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss) (a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | — | — | — | $ | 23 | (b) | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 103,000 | 72,000 | 175,000 | 175,000 | 1,655 | — | — | |||||||||||||||||||||
$ | 175,000 | $ | 1,678 | — | $ | — | ||||||||||||||||||||||
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Italy ETF |
February 29, 2020 |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
FTSE/MIB Index | 1 | 03/20/20 | $ | 121 | $ | (10,823 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 10,823 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts. | $ | 71,447 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts. | $ | (4,600 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 371,557 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 301,269,294 | $ | — | $ | — | $ | 301,269,294 | ||||||||
Preferred Stocks | 5,160,307 | — | — | 5,160,307 | ||||||||||||
Money Market Funds | 175,000 | — | — | 175,000 | ||||||||||||
$ | 306,604,601 | $ | — | $ | — | $ | 306,604,601 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (10,823 | ) | $ | — | $ | — | (10,823 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
2 0 2 0 I s h a r e s S e m I - A n n u a l R e p o r t T o S h a r e h o l d e r s
Schedule of Investments (unaudited) | iShares® MSCI Spain ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 30.1% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 13,197,113 | $ | 62,834,490 | |||||
Banco de Sabadell SA | 21,634,888 | 18,802,738 | ||||||
Banco Santander SA | 35,719,787 | 130,539,461 | ||||||
Bankia SA | 7,222,281 | 11,344,636 | ||||||
Bankinter SA | 2,812,066 | 16,494,795 | ||||||
CaixaBank SA | 1 1,134,474 | 28,387,360 | ||||||
268,403,480 | ||||||||
Biotechnology — 3.4% | ||||||||
Grifols SA | 956,557 | 30,471,161 | ||||||
Construction & Engineering — 7.2% | ||||||||
ACS Actividades de Construccion y Servicios SA | 832,755 | 24,560,754 | ||||||
Ferrovial SA | 1,398,621 | 39,759,825 | ||||||
64,320,579 | ||||||||
Diversified Telecommunication Services — 8.5% | ||||||||
Cellnex Telecom SA(a) | 780,834 | 37,627,598 | ||||||
Telefonica SA | 6,445,383 | 37,948,418 | ||||||
75,576,016 | ||||||||
Electric Utilities — 22.9% | ||||||||
Endesa SA | 1,079,639 | 27,549,132 | ||||||
Iberdrola SA | 13,333,437 | 151,147,847 | ||||||
Red Electrica Corp. SA | 1,331,194 | 25,362,719 | ||||||
204,059,698 | ||||||||
Electrical Equipment — 2.0% | ||||||||
Siemens Gamesa Renewable Energy SA | 1,1 16,611 | 17,815,507 | ||||||
Gas Utilities — 5.0% | ||||||||
Enagas SA | 806,507 | 20,730,232 | ||||||
Naturgy Energy Group SA | 1,027,235 | 23,729,535 | ||||||
44,459,767 | ||||||||
Insurance — 1.5% | ||||||||
Mapfre SA | 5,853,835 | 13,021,040 | ||||||
IT Services — 4.5% | ||||||||
Amadeus IT Group SA | 577,020 | 40,248,041 | ||||||
Oil, Gas & Consumable Fuels — 4.3% | ||||||||
Repsol SA | 3,422,379 | 38,081,821 |
Security | Shares | Value | ||||||
Specialty Retail — 6.8% | ||||||||
Industria de Diseno Textil SA | 1,973,805 | $ | 60,989,368 | |||||
Transportation Infrastructure — 3.7% | ||||||||
Aena SME SA(a) | 206,678 | 32,918,680 | ||||||
Total Common Stocks — 99.9% | ||||||||
(Cost: $1,195,512,922) | 890,365,158 | |||||||
Rights | ||||||||
Construction & Engineering — 0.0% | ||||||||
ACS Actividades de Construccion y Servicios SA, (Expires 03/03/20)(b) | 841,195 | 368,033 | ||||||
Total Rights — 0.0% | ||||||||
(Cost: $408,781) | 368,033 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52% (c)(d) | 387,000 | 387,000 | ||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $387,000) | 387,000 | |||||||
Total Investments in Securities — 100.0% | ||||||||
(Cost: $1,196,308,703) | 891,120,191 | |||||||
Other Assets, Less Liabilities — 0.0% | 315,693 | |||||||
Net Assets — 100.0% | $ | 891,435,884 | ||||||
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Non-income producing security. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss) (a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | — | — | $ | — | $ | 1,533 | (b) | $ | 107 | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 419,000 | (32,000 | ) | 387,000 | 387,000 | 6,250 | — | — | ||||||||||||||||||||
$ | 387,000 | $ | 7,783 | $ | 107 | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Spain ETF |
February 29, 2020 |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
IBEX 35 Index | 5 | 03/20/20 | $ | 477 | $ | (72,880 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 72,880 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts. | $ | 82,653 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts. | $ | (96,766 | ) | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 1,159,585 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 890,365,158 | $ | — | $ | — | $ | 890,365,158 | ||||||||
Rights | 368,033 | — | — | 368,033 | ||||||||||||
Money Market Funds | 387,000 | — | — | 387,000 | ||||||||||||
$ | 891,120,191 | $ | — | $ | — | $ | 891,120,191 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (72,880 | ) | $ | — | $ | — | (72,880 | ) | |||||||
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
2 0 2 0 I s h a r e s S e m I - A n n u a l R e p o r t T o S h a r e h o l d e r s
Schedule of Investments (unaudited) | iShares® MSCI Switzerland ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||
Common Stocks | ||||||
Building Products — 1.7% | ||||||
Geberit AG, Registered | 35,437 | $ | 17,536,363 | |||
Capital Markets — 8.4% | ||||||
Credit Suisse Group AG, Registered | 2,263,346 | 25,276,895 | ||||
Julius Baer Group Ltd. | 240,675 | 9,997,977 | ||||
Partners Group Holding AG | 18,448 | 15,837,892 | ||||
UBS Group AG, Registered | 3,319,881 | 36,355,947 | ||||
87,468,711 | ||||||
Chemicals — 5.8% | ||||||
Clariant AG, Registered | 294,591 | 6,172,122 | ||||
EMS-Chemie Holding AG, Registered | 11,315 | 6,587,120 | ||||
Givaudan SA, Registered | 8,368 | 25,987,094 | ||||
Sika AG, Registered. | 118,368 | 20,960,045 | ||||
59,706,381 | ||||||
Construction Materials — 2.0% | ||||||
LafargeHolcim Ltd., Registered | 455,667 | 21,047,442 | ||||
Diversified Financial Services — 0.5% | ||||||
Pargesa Holding SA, Bearer | 68,640 | 5,002,895 | ||||
Diversified Telecommunication Services — 1.3% | ||||||
Swisscom AG, Registered | 26,193 | 13,898,161 | ||||
Electrical Equipment — 3.3% | ||||||
ABB Ltd., Registered | 1,603,101 | 34,465,139 | ||||
Food Products — 22.8% | ||||||
Barry Callebaut AG, Registered | 3,809 | 7,803,344 | ||||
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS | 1,226 | 9,537,455 | ||||
Chocoladefabriken Lindt & Spruengli AG, Registered | 117 | 10,117,155 | ||||
Nestle SA, Registered | 2,052,628 | 209,620,619 | ||||
237,078,573 | ||||||
Health Care Equipment & Supplies — 4.5% | ||||||
Alcon Inc.(a) | 380,286 | 23,164,071 | ||||
Sonova Holding AG, Registered | 56,289 | 13,363,513 | ||||
Straumann Holding AG, Registered | 11,350 | 10,564,957 | ||||
47,092,541 | ||||||
Insurance — 8.9% | ||||||
Baloise Holding AG, Registered | 55,664 | 8,907,850 | ||||
Swiss Life Holding AG, Registered | 32,547 | 14,747,780 | ||||
Swiss Re AG | 262,014 | 24,805,995 | ||||
Zurich Insurance Group AG. | 115,472 | 44,246,671 | ||||
92,708,296 | ||||||
Life Sciences Tools & Services — 2.6% | ||||||
Lonza Group AG, Registered | 67,716 | 26,752,000 | ||||
Machinery — 1.6% | ||||||
Schindler Holding AG, Participation Certificates, NVS | 45,343 | 10,048,116 |
Security | Shares | Value | ||||
Machinery (continued) | ||||||
Schindler Holding AG, Registered. | 29,326 | $ | 6,277,542 | |||
16,325,658 | ||||||
Marine — 0.9% | ||||||
Kuehne + Nagel International AG, Registered | 62,595 | 9,089,031 | ||||
Pharmaceuticals — 25.8% | ||||||
Novartis AG, Registered | 1,350,011 | 113,320,310 | ||||
Roche Holding AG, NVS. | 452,956 | 144,925,330 | ||||
Vifor Pharma AG | 53,911 | 8,950,356 | ||||
267,195,996 | ||||||
Professional Services — 2.4% | ||||||
Adecco Group AG, Registered | 177,108 | 9,401,115 | ||||
SGS SA, Registered | 6,085 | 15,074,983 | ||||
24,476,098 | ||||||
Real Estate Management & Development — 1.0% | ||||||
Swiss Prime Site AG, Registered | 87,368 | 10,470,260 | ||||
Software — 1.0% | ||||||
Temenos AG, Registered(a) | 71,165 | 10,090,807 | ||||
Specialty Retail — 0.5% | ||||||
Dufry AG, Registered. | 68,213 | 4,948,517 | ||||
Textiles, Apparel & Luxury Goods — 4.2% | ||||||
Cie. Financiere Richemont SA, Registered | 459,062 | 31,016,741 | ||||
Swatch Group AG (The), Bearer | 35,490 | 8,135,990 | ||||
Swatch Group AG (The), Registered | 107,029 | 4,566,659 | ||||
43,719,390 | ||||||
Total Common Stocks — 99.2% | ||||||
(Cost: $1,014,521,072). | 1,029,072,259 | |||||
Short-Term Investments | ||||||
Money Market Funds — 0.0% | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c) | 526,000 | 526,000 | ||||
Total Short-Term Investments — 0.0% (Cost: $526,000) | 526,000 | |||||
Total Investments in Securities — 99.2% (Cost: $1,015,047,072) | 1,029,598,259 | |||||
Other Assets, Less Liabilities — 0.8% | 7,842,250 | |||||
Net Assets — 100.0% | $ | 1,037,440,509 |
(a) Non-income producing security.
(b) Affiliate of the Fund.
(c) Annualized 7-day yield as of period-end.
S c h e d u l e o f I n v e s t m e n t s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Switzerland ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 516,000 | 10,000 | 526,000 | $ | 526,000 | $ | 4,293 | $ | — | $ | — |
(a) Includes realized capital gain distributions from an affiliated fund, if any.
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | |||||||
Long Contracts Euro STOXX 50 Index | 170 | 03/20/20 | $ | 6,188 | $ | (846,852 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts | |||
Liabilities — Derivative Financial Instruments | |||
Futures contracts Unrealized depreciation on futures contracts(a) | $ | 846,852 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
| ||
Net Realized Gain (Loss) from: | |||
Futures contracts | $ | 1,197,883 | |
Net Change in Unrealized Appreciation (Depreciation) on: | |||
Futures contracts | $ | (1,019,745 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | |||
Average notional value of contracts — long | $ | 8,946,256 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Schedule of Investments (unaudited) (continued) | iShares® MSCI Switzerland ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||
Investments | ||||||||||||
Assets | ||||||||||||
Common Stocks | $ | 1,029,072,259 | $ | — | $ | — | $ | 1,029,072,259 | ||||
Money Market Funds | 526,000 | — | — | 526,000 | ||||||||
$ | 1,029,598,259 | $ | — | $ | — | $ | 1,029,598,259 | |||||
Derivative financial instruments(a) | ||||||||||||
Liabilities | ||||||||||||
Futures Contracts | $ | (846,852 | ) | $ | — | $ | — | $ | (846,852 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||
ASSETS | ||||||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||||||
Unaffiliated(b) | $ | 4,988,196,162 | $ | 1,999,347,312 | $ | 306,429,601 | $ | 890,733,191 | ||||
Affiliated(c) | 48,841,895 | 36,465,992 | 175,000 | 387,000 | ||||||||
Cash | 936 | 28 | 458 | 823 | ||||||||
Foreign currency, at value(d) | 5,230,690 | 5,161,702 | 330,790 | 1,311,440 | ||||||||
Foreign currency collateral pledged: | ||||||||||||
Futures contracts(e) | 1,038,035 | 1,123,934 | 10,985 | 115,667 | ||||||||
Receivables: | ||||||||||||
Investments sold | 10,261,455 | 2,737,515 | 20,324,091 | 33,194,811 | ||||||||
Securities lending income — Affiliated | 67,775 | 71,579 | — | — | ||||||||
Dividends | 1,424,367 | 2,010 | 1,783 | 1,022 | ||||||||
Tax reclaims | 8,695,793 | 9,078,875 | — | 58,724 | ||||||||
Foreign withholding tax claims | 1,109 | — | — | — | ||||||||
Total assets | 5,063,758,217 | 2,053,988,947 | 327,272,708 | 925,802,678 | ||||||||
LIABILITIES | ||||||||||||
Collateral on securities loaned, at value | 46,809,183 | 35,167,990 | — | — | ||||||||
Payables: | ||||||||||||
Investments purchased | 6,671,521 | 6,304,406 | 8,178,151 | 33,941,547 | ||||||||
Variation margin on futures contracts | 629,394 | 700,487 | 4,318 | 36,112 | ||||||||
Capital shares redeemed | 455,161 | 63,363 | 12,311,287 | — | ||||||||
Investment advisory fees | 2,214,003 | 878,744 | 137,561 | 389,135 | ||||||||
Professional fees. | 11 | — | — | — | ||||||||
Total liabilities | 56,779,273 | 43,114,990 | 20,631,317 | 34,366,794 | ||||||||
NET ASSETS. | $ | 5,006,978,944 | $ | 2,010,873,957 | $ | 306,641,391 | $ | 891,435,884 | ||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 6,725,100,524 | $ | 2,902,990,871 | $ | 550,692,009 | $ | 1,420,486,789 | ||||
Accumulated loss | (1,718,121,580 | ) | (892,116,914 | ) | (244,050,618 | ) | (529,050,905 | ) | ||||
NET ASSETS. | $ | 5,006,978,944 | $ | 2,010,873,957 | $ | 306,641,391 | $ | 891,435,884 | ||||
Shares outstanding | 135,100,000 | 77,400,000 | 11,400,000 | 34,275,000 | ||||||||
Net asset value | $ | 37.06 | $ | 25.98 | $ | 26.90 | $ | 26.01 | ||||
Shares authorized | 1 billion | 482.2 million | 295.4 million | 127.8 million | ||||||||
Par value. | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||
(a) Securities loaned, at value. | $ | 43,466,724 | $ | 32,192,187 | $ | — | $ | — | ||||
(b) Investments, at cost — Unaffiliated | $ | 6,172,660,793 | $ | 2,654,285,614 | $ | 352,471,045 | $ | 1,195,921,703 | ||||
(c) Investments, at cost — Affiliated | $ | 48,827,828 | $ | 36,454,211 | $ | 175,000 | $ | 387,000 | ||||
(d) Foreign currency, at cost | $ | 5,183,057 | $ | 5,114,591 | $ | 330,752 | $ | 1,305,325 | ||||
(e) Foreign currency collateral pledged, at cost | $ | 1,049,919 | $ | 1,135,017 | $ | 11,014 | $ | 116,213 | ||||
See notes to financial statements. |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares MSCI Switzerland ETF | |||
ASSETS | |||
Investments in securities, at value: | |||
Unaffiliated(a) | $ | 1,029,072,259 | |
Affiliated(b) | 526,000 | ||
Cash | 853 | ||
Foreign currency, at value(c) | 64,647 | ||
Foreign currency collateral pledged: | |||
Futures contracts(d) | 456,955 | ||
Receivables: | |||
Investments sold | 4,432,205 | ||
Dividends | 2,233 | ||
Tax reclaims | 8,101,456 | ||
Total assets | 1,042,656,608 | ||
LIABILITIES | |||
Payables: | |||
Investments purchased | 4,386,427 | ||
Variation margin on futures contracts | 270,924 | ||
Capital shares redeemed | 99,000 | ||
Investment advisory fees | 459,748 | ||
Total liabilities | 5,216,099 | ||
NET ASSETS | $ | 1,037,440,509 | |
NET ASSETS CONSIST OF: | |||
Paid-in capital | $ | 1,040,075,822 | |
Accumulated loss | (2,635,313 | ) | |
NET ASSETS | $ | 1,037,440,509 | |
Shares outstanding | 27,625,000 | ||
Net asset value | $ | 37.55 | |
Shares authorized | 318.625 million | ||
Par value | $ | 0.001 | |
(a) Investments, at cost — Unaffiliated | $ | 1,014,521,072 | |
(b) Investments, at cost — Affiliated | $ | 526,000 | |
(c) Foreign currency, at cost | $ | 60,627 | |
(d) Foreign currency collateral pledged, at cost | $ | 458,022 | |
See notes to financial statements. |
F i n a n c i a l S t a t e m e n t s
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Unaffiliated | $ | 31,065,778 | $ | 6,763,283 | $ | 3,081,876 | $ | 11,250,722 | ||||
Dividends — Affiliated | 20,085 | 8,856 | 1,655 | 6,250 | ||||||||
Non-cash dividends — Unaffiliated | 2,723,154 | — | — | 4,525,737 | ||||||||
Securities lending income — Affiliated — net | 423,530 | 229,680 | 23 | 1,533 | ||||||||
Foreign taxes withheld | (4,296,413 | ) | (1,000,763 | ) | (453,607 | ) | (1,664,234 | ) | ||||
Total investment income | 29,936,134 | 6,001,056 | 2,629,947 | 14,120,008 | ||||||||
EXPENSES | ||||||||||||
Investment advisory fees | 14,403,479 | 5,244,047 | 736,697 | 2,267,963 | ||||||||
Total expenses | 14,403,479 | 5,244,047 | 736,697 | 2,267,963 | ||||||||
Net investment income | 15,532,655 | 757,009 | 1,893,250 | 11,852,045 | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | (50,265,378 | ) | (18,539,789 | ) | (8,682,380 | ) | (60,012,070 | ) | ||||
Investments — Affiliated | 9,081 | 180 | — | 107 | ||||||||
In-kind redemptions — Unaffiliated | 87,522,783 | (5,041,736 | ) | 1,657,246 | 7,528,953 | |||||||
Futures contracts | 2,466,209 | 852,066 | 71,447 | 82,653 | ||||||||
Foreign currency transactions | (75,051 | ) | (120,088 | ) | (20,352 | ) | (16,172 | ) | ||||
Net realized gain (loss) | 39,657,644 | (22,849,367 | ) | (6,974,039 | ) | (52,416,529 | ) | |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated. | (117,890,277 | ) | (11,711,516 | ) | 2,210,521 | 30,830,811 | ||||||
Investments — Affiliated | 3,030 | 7,521 | — | — | ||||||||
Futures contracts | (2,098,132 | ) | (1,378,783 | ) | (4,600 | ) | (96,766 | ) | ||||
Foreign currency translations | 144,069 | 46,065 | 3,388 | 13,772 | ||||||||
Net change in unrealized appreciation (depreciation) | (119,841,310 | ) | (13,036,713 | ) | 2,209,309 | 30,747,817 | ||||||
Net realized and unrealized loss | (80,183,666 | ) | (35,886,080 | ) | (4,764,730 | ) | (21,668,712 | ) | ||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (64,651,011 | ) | $ | (35,129,071 | ) | $ | (2,871,480 | ) | $ | (9,816,667 | ) |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares MSCI Switzerland ETF | |||
INVESTMENT INCOME | |||
Dividends — Unaffiliated | $ | 1,010,495 | |
Dividends — Affiliated | 4,293 | ||
Foreign taxes withheld | (83,944 | ) | |
Total investment income | 930,844 | ||
EXPENSES | |||
Investment advisory fees | 2,850,690 | ||
Total expenses | 2,850,690 | ||
Net investment loss | (1,919,846 | ) | |
REALIZED AND UNREALIZED GAIN (LOSS) | |||
Net realized gain (loss) from: | |||
Investments — Unaffiliated | (6,920,221 | ) | |
In-kind redemptions — Unaffiliated | 52,867,100 | ||
Futures contracts | 1,197,883 | ||
Foreign currency transactions | (156,799 | ) | |
Net realized gain | 46,987,963 | ||
Net change in unrealized appreciation (depreciation) on: | |||
Investments — Unaffiliated | (28,260,307 | ) | |
Futures contracts | (1,019,745 | ) | |
Foreign currency translations | 346,867 | ||
Net change in unrealized appreciation (depreciation) | (28,933,185 | ) | |
Net realized and unrealized gain | 18,054,778 | ||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. | $ | 16,134,932 | |
See notes to financial statements. |
F i n a n c i a l S t a t e m e n t s
Statements of Changes in Net Assets
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | |||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | |||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 15,532,655 | $ | 188,336,497 | $ | 757,009 | $ | 58,499,817 | ||||
Net realized gain (loss) | 39,657,644 | (256,286,586 | ) | (22,849,367 | ) | (85,758,069 | ) | |||||
Net change in unrealized appreciation (depreciation) | (119,841,310 | ) | (541,585,755 | ) | (13,036,713 | ) | (329,119,184 | ) | ||||
Net decrease in net assets resulting from operations | (64,651,011 | ) | (609,535,844 | ) | (35,129,071 | ) | (356,377,436 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||
Decrease in net assets resulting from distributions to shareholders | (25,144,798 | ) | (193,219,136 | ) | — | (58,677,042 | ) | |||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (134,736,419 | ) | (3,523,968,012 | ) | 43,318,343 | (933,488,410 | ) | |||||
NET ASSETS | ||||||||||||
Total increase (decrease) in net assets | (224,532,228 | ) | (4,326,722,992 | ) | 8,189,272 | (1,348,542,888 | ) | |||||
Beginning of period | 5,231,511,172 | 9,558,234,164 | 2,002,684,685 | 3,351,227,573 | ||||||||
End of period | $ | 5,006,978,944 | $ | 5,231,511,172 | $ | 2,010,873,957 | $ | 2,002,684,685 | ||||
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | ||||||||||||
See notes to financial statements. |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Statements of Changes in Net Assets (continued)
iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | |||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 1,893,250 | $ | 10,103,171 | $ | 11,852,045 | $ | 34,269,377 | ||||
Net realized loss | (6,974,039 | ) | (42,250,592 | ) | (52,416,529 | ) | (28,332,161 | ) | ||||
Net change in unrealized appreciation (depreciation) | 2,209,309 | 35,984,260 | 30,747,817 | (96,440,348 | ) | |||||||
Net increase (decrease) in net assets resulting from operations | (2,871,480 | ) | 3,836,839 | (9,816,667 | ) | (90,503,132 | ) | |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||
Decrease in net assets resulting from distributions to shareholders | (2,367,408 | ) | (10,603,637 | ) | (21,359,646 | ) | (32,499,998 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 76,423,518 | (163,401,382 | ) | 97,401,049 | 72,772,356 | |||||||
NET ASSETS | ||||||||||||
Total increase (decrease) in net assets | 71,184,630 | (170,168,180 | ) | 66,224,736 | (50,230,774 | ) | ||||||
Beginning of period | 235,456,761 | 405,624,941 | 825,211,148 | 875,441,922 | ||||||||
End of period | $ | 306,641,391 | $ | 235,456,761 | $ | 891,435,884 | $ | 825,211,148 | ||||
(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
Statements of Changes in Net Assets (continued)
iShares MSCI Switzerland ETF | ||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | |||||
INCREASE (DECREASE) IN NET ASSETS | ||||||
OPERATIONS | ||||||
Net investment income (loss) | $ | (1,919,846 | ) | $ | 20,527,971 | |
Net realized gain | 46,987,963 | 4,112,266 | ||||
Net change in unrealized appreciation (depreciation) | (28,933,185 | ) | 53,854,421 | |||
Net increase in net assets resulting from operations | 16,134,932 | 78,494,658 | ||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||
Decrease in net assets resulting from distributions to shareholders | — | (21,371,038 | ) | |||
CAPITAL SHARE TRANSACTIONS | ||||||
Net increase (decrease) in net assets derived from capital share transactions. | (116,730,180 | ) | 46,825,869 | |||
NET ASSETS | ||||||
Total increase (decrease) in net assets | (100,595,248 | ) | 103,949,489 | |||
Beginning of period | 1,138,035,757 | 1,034,086,268 | ||||
End of period | $ | 1,037,440,509 | $ | 1,138,035,757 | ||
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | ||||||
See notes to financial statements. |
2 0 2 0 i S h a r e s S e m i - A n 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
(For a share outstanding throughout each period)
iShares MSCI Eurozone ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 37.91 | $ | 41.29 | $ | 41.71 | $ | 34.20 | $ | 36.04 | $ | 39.98 | ||||||||||||
Net investment income(a) | 0.11 | 1.05 | 1.03 | 0.99 | 0.92 | (b) | 0.96 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (0.79 | ) | (3.22 | ) | (0.23 | ) | 7.38 | (1.84 | ) | (3.95 | ) | |||||||||||||
Net increase (decrease) from investment operations | (0.68 | ) | (2.17 | ) | 0.80 | 8.37 | (0.92 | ) | (2.99 | ) | ||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.17 | ) | (1.21 | ) | (1.22 | ) | (0.86 | ) | (0.92 | ) | (0.95 | ) | ||||||||||||
Total distributions | (0.17 | ) | (1.21 | ) | (1.22 | ) | (0.86 | ) | (0.92 | ) | (0.95 | ) | ||||||||||||
Net asset value, end of period | $ | 37.06 | $ | 37.91 | $ | 41.29 | $ | 41.71 | $ | 34.20 | $ | 36.04 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.85 | )%(e) | (5.22 | )% | 1.87 | % | 24.72 | % | (2.53 | )%(b) | (7.62 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(f) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims | N/A | 0.49 | % | N/A | 0.49 | % | 0.48 | % | N/A | |||||||||||||||
Net investment income | 0.54 | %(f) | 2.74 | % | 2.36 | % | 2.63 | % | 2.69 | %(b) | 2.50 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 5,006,979 | $ | 5,231,511 | $ | 9,558,234 | $ | 13,286,216 | $ | 8,293,591 | $ | 10,134,616 | ||||||||||||
Portfolio turnover rate(g) | 2 | %(e) | 6 | % | 5 | % | 4 | % | 4 | % | 5 | % |
(a) | Based on average shares outstanding. |
(b) | Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2016: |
• Net investment income per share by $0.02. | |
• Total return by 0.08%. | |
• Ratio of net investment income to average net assets by 0.06%. | |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | 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
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Germany ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.28 | $ | 30.36 | $ | 30.71 | $ | 26.18 | $ | 26.34 | $ | 28.97 | ||||||||||||
Net investment income(a) | 0.01 | 0.65 | 0.64 | 0.59 | 0.49 | 0.58 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.31 | ) | (3.99 | ) | (0.16 | ) | 4.54 | (0.04 | ) | (2.70 | ) | |||||||||||||
Net increase (decrease) from investment operations | (0.30 | ) | (3.34 | ) | 0.48 | 5.13 | 0.45 | (2.12 | ) | |||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | — | (0.74 | ) | (0.83 | ) | (0.60 | ) | (0.61 | ) | (0.51 | ) | |||||||||||||
Total distributions | — | (0.74 | ) | (0.83 | ) | (0.60 | ) | (0.61 | ) | (0.51 | ) | |||||||||||||
Net asset value, end of period | $ | 25.98 | $ | 26.28 | $ | 30.36 | $ | 30.71 | $ | 26.18 | $ | 26.34 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.14 | )%(d) | (11.07 | )% | 1.52 | % | 19.63 | % | 1.81 | % | (7.50 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 0.07 | %(e) | 2.38 | % | 1.99 | % | 2.08 | % | 1.90 | % | 2.03 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,010,874 | $ | 2,002,685 | $ | 3,351,228 | $ | 4,809,899 | $ | 3,596,902 | $ | 6,607,056 | ||||||||||||
Portfolio turnover rate(f) | 1 | %(d) | 9 | % | 6 | % | 3 | % | 3 | % | 3 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Italy ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | (a) | Year Ended 08/31/16 | (a) | Year Ended 08/31/15 | (a) | ||||||||||||||||
Net asset value, beginning of period | $ | 26.83 | $ | 27.18 | $ | 30.21 | $ | 22.60 | $ | 29.50 | $ | 32.03 | ||||||||||||
Net investment income(b) | 0.18 | 1.00 | 0.82 | 0.57 | 0.66 | 0.70 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) | 0.09 | (0.12 | ) | (2.86 | ) | 7.76 | (6.82 | ) | (2.49 | ) | ||||||||||||||
Net increase (decrease) from investment operations | 0.27 | 0.88 | (2.04 | ) | 8.33 | (6.16 | ) | (1.79 | ) | |||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.20 | ) | (1.23 | ) | (0.99 | ) | (0.72 | ) | (0.72 | ) | (0.74 | ) | ||||||||||||
Return of capital | (0.02 | ) | — | |||||||||||||||||||||
Total distributions | (0.20 | ) | (1.23 | ) | (0.99 | ) | (0.72 | ) | (0.74 | ) | (0.74 | ) | ||||||||||||
Net asset value, end of period | $ | 26.90 | $ | 26.83 | $ | 27.18 | $ | 30.21 | $ | 22.60 | $ | 29.50 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.96 | %(e) | 3.46 | % | (6.98 | )% | 37.37 | % | (20.97 | )% | (5.66 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(f) | 0.49 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 1.28 | %(f) | 3.72 | % | 2.64 | % | 2.59 | % | 2.54 | % | 2.34 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 306,641 | $ | 235,457 | $ | 405,625 | $ | 840,630 | $ | 461,031 | $ | 1,077,437 | ||||||||||||
Portfolio turnover rate(g) | 4 | %(e) | 13 | % | 10 | % | 18 | % | 16 | % | 22 | % |
(a) | Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. |
(b) | Based on average shares outstanding. |
(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) | Not annualized. |
(f) | Annualized. |
(g) | 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
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Spain ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.71 | $ | 29.85 | $ | 33.63 | $ | 26.49 | $ | 31.96 | $ | 40.61 | ||||||||||||
Net investment income(a) | 0.37 | 1.04 | 0.99 | 0.94 | 1.00 | 1.32 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.39 | ) | (3.26 | ) | (3.72 | ) | 7.19 | (5.40 | ) | (8.35 | ) | |||||||||||||
Net increase (decrease) from investment operations | (0.02 | ) | (2.22 | ) | (2.73 | ) | 8.13 | (4.40 | ) | (7.03 | ) | |||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.68 | ) | (0.92 | ) | (1.05 | ) | (0.99 | ) | (1.07 | ) | (1.62 | ) | ||||||||||||
Total distributions | (0.68 | ) | (0.92 | ) | (1.05 | ) | (0.99 | ) | (1.07 | ) | (1.62 | ) | ||||||||||||
Net asset value, end of period | $ | 26.01 | $ | 26.71 | $ | 29.85 | $ | 33.63 | $ | 26.49 | $ | 31.96 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (0.33 | )%(d) | (7.53 | )% | (8.28 | )% | 31.48 | % | (13.82 | )% | (17.63 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.50 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 2.61 | %(e) | 3.65 | % | 3.02 | % | 3.10 | % | 3.53 | % | 3.70 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 891,436 | $ | 825,211 | $ | 875,442 | $ | 1,528,533 | $ | 599,944 | $ | 1,666,091 | ||||||||||||
Portfolio turnover rate(f) | 7 | %(d) | 12 | % | 21 | % | 16 | % | 9 | % | 15 | % |
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Switzerland ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 37.31 | $ | 34.91 | $ | 34.27 | $ | 30.22 | $ | 31.90 | $ | 33.64 | ||||||||||||
Net investment income (loss) (a) | (0.07 | ) | 0.72 | 0.66 | 0.69 | 0.81 | 0.83 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.31 | 2.43 | 0.79 | 4.11 | (1.70 | ) | (1.77 | ) | ||||||||||||||||
Net increase (decrease) from investment operations | 0.24 | 3.15 | 1.45 | 4.80 | (0.89 | ) | (0.94 | ) | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | — | (0.75 | ) | (0.81 | ) | (0.75 | ) | (0.79 | ) | (0.80 | ) | |||||||||||||
Total distributions | — | (0.75 | ) | (0.81 | ) | (0.75 | ) | (0.79 | ) | (0.80 | ) | |||||||||||||
Net asset value, end of period | $ | 37.55 | $ | 37.31 | $ | 34.91 | $ | 34.27 | $ | 30.22 | $ | 31.90 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.64 | %(d) | 9.07 | % | 4.43 | % | 15.90 | % | (2.76 | )% | (2.92 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(e) | 0.50 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income (loss) | (0.34 | )%(e) | 2.06 | % | 1.91 | % | 2.18 | % | 2.68 | % | 2.49 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,037,441 | $ | 1,138,036 | $ | 1,034,086 | $ | 1,259,258 | $ | 1,091,735 | $ | 1,200,164 | ||||||||||||
Portfolio turnover rate(f) | 4 | %(d) | 11 | % | 9 | % | 13 | % | 6 | % | 7 | % |
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l H i g h l i g h t s
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
Diversification | |
iShares ETF | Classification |
MSCI Eurozone | Diversified |
MSCI Germany | Non-diversified |
MSCI Italy | Non-diversified |
MSCI Spain | Non-diversified |
MSCI Switzerland | Non-diversified |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
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.
2 0 2 0 i S h a r e s S e m i - A n 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)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund m ight 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral
N o t e s t o F i n a n c i a l S t a t e m e n t s
Notes to Financial Statements (unaudited) (continued)
received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party o r request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
Market Value of | Cash Collateral | Non-Cash Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received | (a) | Received | Net Amount | |||||||||||
MSCI Eurozone | ||||||||||||||||
BNP Paribas Prime Brokerage International Ltd. | $ | 2,239,440 | $ | 2,239,440 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 9,952,804 | 9,952,804 | — | — | ||||||||||||
Goldman Sachs & Co. | 7,034,721 | 7,034,721 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 24,239,759 | 24,239,759 | — | — | ||||||||||||
$ | 43,466,724 | $ | 43,466,724 | $ | — | $ | — | |||||||||
Goldman Sachs & Co.. | $ | 6,817,740 | $ | 6,817,740 | $ | — | $ | — | ||||||||
Morgan Stanley & Co. LLC | 25,374,447 | 25,374,447 | — | — | ||||||||||||
$ | 32,192,187 | $ | 32,192,187 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
2 0 2 0 i S h a r e s S e m i - A n 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)
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |
First $7 billion | . | 0.59% |
Over $7 billion, up to and including $11 billion | . | 0.54 |
Over $11 billion, up to and including $24 billion | . | 0.49 |
Over $24 billion, up to and including $48 billion | . | 0.44 |
Over $48 billion, up to and including $72 billion | . | 0.40 |
Over $72 billion, up to and including $96 billion | . | 0.36 |
Over $96 billion | . | 0.32 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% 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 statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
Fees Paid | ||
iShares ETF | to BTC | |
MSCI Eurozone | $ 99,575 | |
MSCI Germany | 56,520 | |
MSCI Italy | 7 | |
MSCI Spain | 486 |
Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors 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 February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
Net Realized | |||
iShares ETF | Purchases | Sales | Gain (Loss) |
MSCI Eurozone | $ 59,409,495 | $ 1,284,467 | $ (1,400,562) |
MSCI Germany | 3,978,637 | 1,128,707 | (1,988,350) |
MSCI Italy | 731,936 | 5,798,209 | (3,507,297) |
MSCI Spain | 17,465,603 | 6,480,344 | (7,529,714) |
MSCI Switzerland | 25,787,041 | 7,839,047 | (1,001,376) |
N o t e s t o F i n a n c i a l S t a t e m e n t s
Notes to Financial Statements (unaudited) (continued)
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales |
MSCI Eurozone | $ 1 17,321,335 | $ 117,572,061 |
MSCI Germany | 32,755,024 | 16,144,735 |
MSCI Italy | 17,324,063 | 12,404,249 |
MSCI Spain | 69,393,729 | 66,951,029 |
MSCI Switzerland | 43,044,650 | 42,375,299 |
For the six months ended February 29, 2020, in-kind transactions were as follows:
In-kind | In-kind | |
iShares ETF | Purchases | Sales |
MSCI Eurozone | $ 542,165,082 | $ 675,203,828 |
MSCI Germany | 314,772,792 | 271,788,008 |
MSCI Italy | 91, 752,731 | 20,298,749 |
MSCI Spain | 171,979,941 | 90,935,230 |
MSCI Switzerland | 128,814,278 | 241,954,732 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Company's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds' financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring |
MSCI Eurozone | $ 485,612,043 |
MSCI Germany | 176,437,193 |
MSCI Italy | 185,184,703 |
MSCI Spain | 149,483,044 |
MSCI Switzerland | 48,001,982 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, 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:
Net Unrealized | |||||
Gross Unrealized | Gross Unrealized | Appreciation | |||
iShares ETF | Tax Cost | Appreciation | Depreciation | (Depreciation) | |
MSCI Eurozone | $ 6,312,246,803 | $ | 389,115,669 | $ (1,666,139,165) | $(1,277,023,496) |
MSCI Germany | 2,727,499,852 | 119,908,917 | (813,142,158) | (693,233,241) | |
MSCI Italy | 359,817,828 | 16,420,279 | (69,644,329) | (53,224,050) | |
MSCI Spain | 1,220,313,925 | 43,587,836 | (372,854,450) | (329,266,614) | |
MSCI Switzerland | 1,028,561,025 | 100,220,889 | (100,030,507) | 190,382 |
2020 | S h a r e s S e m i - a n 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)
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
N o t e s t o F i n a n c i a l S t a t e m e n t s
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Amount | |||||||||||||
MSCI Eurozone | ||||||||||||||||
Shares sold | 13,700,000 | $ | 549,085,543 | 9,500,000 | $ | 367,902,543 | ||||||||||
Shares redeemed | (16,600,000 | ) | (683,821,962 | ) | (103,000,000 | ) | (3,891,870,555 | ) | ||||||||
Net decrease | (2,900,000 | ) | $ | (134,736,419 | ) | (93,500,000 | ) | $ | (3,523,968,012 | ) | ||||||
MSCI Germany | ||||||||||||||||
Shares sold | 10,800,000 | $ | 317,241,894 | 12,300,000 | $ | 337,288,125 | ||||||||||
Shares redeemed | (9,600,000 | ) | (273,923,551 | ) | (46,500,000 | ) | (1,270,776,535 | ) | ||||||||
Net increase(decrease) | 1,200,000 | $ | 43,318,343 | (34,200,000 | ) | $ | (933,488,410 | ) | ||||||||
MSCI Italy | ||||||||||||||||
Shares sold | 3,375,000 | $ | 97,469,039 | 13,050,000 | $ | 348,776,931 | ||||||||||
Shares redeemed | (750,000 | ) | (21,045,521 | ) | (19,200,000 | ) | (512,178,313 | ) | ||||||||
Net increase(decrease) | 2,625,000 | $ | 76,423,518 | (6,150,000 | ) | $ | (163,401,382 | ) | ||||||||
MSCI Spain | ||||||||||||||||
Shares sold | 6,750,000 | $ | 193,540,553 | 27,900,000 | $ | 803,958,247 | ||||||||||
Shares redeemed | (3,375,000 | ) | (96,139,504 | ) | (26,325,000 | ) | (731,185,891 | ) | ||||||||
Net increase | 3,375,000 | $ | 97,401,049 | 1,575,000 | $ | 72,772,356 | ||||||||||
MSCI Switzerland | ||||||||||||||||
Shares sold | 3,500,000 | $ | 132,582,113 | 9,500,000 | $ | 333,118,780 | ||||||||||
Shares redeemed | (6,375,000 | ) | (249,312,293 | ) | (8,625,000 | ) | (286,292,911 | ) | ||||||||
Net increase(decrease) | (2,875,000 | ) | $ | (116,730,180 | ) | 875,000 | $ | 46,825,869 |
The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company's administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | FOREIGN WITHHOLDING TAX CLAIMS |
The iShares MSCI Eurozone ETF has filed claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded receivables for all recoverable taxes withheld by Finland based upon recent favorable determinations made by the Finnish tax authorities. Professional and other fees associated with the filing of these claims for foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon statutes of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables and payables recorded. Finnish tax claim receivables and related liabilities are disclosed in the statement of assets and liabilities.
The Internal Revenue Service ("IRS") has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.
12. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the
2 0 2 0 i S h a r e s S e m i - A n 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)
Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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
Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity
NVS | Non-Voting Shares |
2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-814-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report (Unaudited) |
iShares Trust
● | iShares Currency Hedged MSCI United Kingdom ETF | HEWU | NYSE Arca |
● | iShares MSCI United Kingdom ETF | EWU | NYSE Arca |
● | iShares MSCI United Kingdom Small-Cap ETF | EWUS | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® Currency Hedged MSCI United Kingdom ETF |
Investment Objective
The iSharesCurrency Hedged MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization United Kingdom equities while mitigating exposure to fluctuations between the value of the British pound and the U.S. dollar, as represented by the MSCI United Kingdom 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI United Kingdom ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||
Fund NAV | (5.92 | )% | (1.25 | )% | 4.63 | % | (1.25 | )% | 23.52 | % | ||||||||||
Fund Market | (6.23 | ) | (1.44 | ) | 4.55 | (1.44 | ) | 23.11 | ||||||||||||
Index | (6.52 | ) | (1.55 | ) | 4.79 | (1.55 | ) | 24.44 |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 6 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a)(b) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 940.80 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.90 | $ | 0.00 | 0.00 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 6 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | Percent of Total Investments | (a) | ||
Financials | 20.3 | % | ||
Consumer Staples | 17.4 | |||
Energy | 13.2 | |||
Health Care | 11.4 | |||
Industrials | 11.2 | |||
Materials | 8.3 | |||
Consumer Discretionary | 6.8 | |||
Communication Services | 4.9 | |||
Utilities | 4.1 | |||
Information Technology | 1.2 | |||
Real Estate | 1.2 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
HSBC Holdings PLC | 6.6 | % | ||
AstraZeneca PLC | 5.5 | |||
BP PLC | 5.0 | |||
GlaxoSmithKline PLC | 4.8 | |||
British American Tobacco PLC | 4.4 | |||
Royal Dutch Shell PLC, Class A | 4.3 | |||
Diageo PLC . | 4.0 | |||
Royal Dutch Shell PLC, Class B | 3.9 | |||
Unilever PLC | 2.9 | |||
Rio Tinto PLC | 2.5 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® MSCI United Kingdom ETF |
Investment Objective
The iShares MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of U.K. equities, as represented by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | (3.22 | )% | (7.86 | )% | (1.62 | )% | 3.44 | % | (7.86 | )% | (7.83 | )% | 40.27 | % | ||||||||||||||
Fund Market | (1.67 | ) | (6.05 | ) | (1.19 | ) | 3.58 | (6.05 | ) | (5.79 | ) | 42.20 | ||||||||||||||||
Index | (2.96 | ) | (7.37 | ) | (1.12 | ) | 3.98 | (7.37 | ) | (5.48 | ) | 47.81 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 6 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a)(b) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 967.80 | $ | 2.45 | $ | 1,000.00 | $ | 1,022.40 | $ | 2.51 | 0.50 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 6 for more information. |
Portfolio Information
ALLOCATION BY SECTOR |
Sector | Percent of Total Investments | (a) | ||
Financials | 20.3 | % | ||
Consumer Staples | 17.4 | |||
Energy | 13.2 | |||
Health Care | 11.4 | |||
Industrials | 11.2 | |||
Materials | 8.3 | |||
Consumer Discretionary | 6.8 | |||
Communication Services | 4.9 | |||
Utilities | 4.1 | |||
Information Technology | 1.2 | |||
Real Estate | 1.2 |
TEN LARGEST HOLDINGS |
Security | Percent of Total Investments | (a) | ||
HSBC Holdings PLC | 6.6 | % | ||
AstraZeneca PLC | 5.5 | |||
BP PLC | 5.0 | |||
GlaxoSmithKline PLC | 4.8 | |||
British American Tobacco PLC | 4.4 | |||
Royal Dutch Shell PLC, Class A | 4.3 | |||
Diageo PLC | 4.0 | |||
Royal Dutch Shell PLC, Class B | 3.9 | �� | ||
Unilever PLC | 2.9 | |||
Rio Tinto PLC | 2.5 |
(a) | Excludes money market funds. |
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Fund Summary as of February 29, 2020 | iShares® MSCI United Kingdom Small-Cap ETF |
Investment Objective
The iShares MSCI United Kingdom Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.K. equities, as represented by the MSCI United Kingdom Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV | 6.29 | % | (0.79 | )% | 1.51 | % | 7.95 | % | (0.79 | )% | 7.78 | % | 85.76 | % | ||||||||||||||
Fund Market | 7.69 | 0.81 | 1.89 | 8.12 | 0.81 | 9.80 | 88.22 | |||||||||||||||||||||
Index | 6.69 | (0.15 | ) | 2.12 | 8.61 | (0.15 | ) | 11.04 | 95.16 |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 6 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a)(b) | Beginning Account Value (09/01/19) | Ending Account Value (02/29/20) | Expenses Paid During the Period | (a)(b) | Annualized Expense Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 1,062.90 | $ | 3.03 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.97 | 0.59 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 6 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Security | Percent of Total Investments | (a) | ||
Industrials | 19.1 | % | ||
Consumer Discretionary | 17.0 | |||
Financials | 16.7 | |||
Real Estate | 13.6 | |||
Information Technology | 7.6 | |||
Health Care | 6.9 | |||
Materials | 5.9 | |||
Communication Services | 4.6 | |||
Consumer Staples | 4.0 | |||
Energy | 2.5 | |||
Utilities | 2.1 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments | (a) | ||
Rightmove PLC | 1.8 | % | ||
Intermediate Capital Group PLC | 1.5 | |||
Bellway PLC | 1.5 | |||
Pennon Group PLC | 1.5 | |||
DS Smith PLC | 1.4 | |||
Derwent London PLC | 1.4 | |||
Howden Joinery Group PLC | 1.3 | |||
Phoenix Group Holdings PLC | 1.2 | |||
Travis Perkins PLC | 1.2 | |||
HomeServe PLC | 1.2 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 5 |
Past performance is no guarantee 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
6 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI United Kingdom ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.4% | ||||||||
iShares MSCI United Kingdom ETF(a) | 1,985,913 | $ | 58,187,251 | |||||
Total Investment Companies — 99.4% | ||||||||
(Cost: $62,332,416) | 58,187,251 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.3% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(a)(b) | 761,000 | 761,000 | ||||||
Total Short-Term Investments — 1.3% | ||||||||
(Cost: $761,000) | 761,000 | |||||||
Total Investments in Securities — 100.7% | ||||||||
(Cost: $63,093,416) | 58,948,251 | |||||||
Other Assets, Less Liabilities — (0.7)% | (410,576 | ) | ||||||
Net Assets — 100.0% | $ | 58,537,675 |
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Shares Purchased | Shares Sold | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 77,000 | 684,000 | (b) | — | 761,000 | $ | 761,000 | $ | 1,215 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI United Kingdom ETF | 1,154,591 | 1,063,448 | (232,126 | ) | 1,985,913 | 58,187,251 | 1,115,165 | (147,693 | ) | (2,742,138 | ) | |||||||||||||||||||||
$ | 58,948,251 | $ | 1,116,380 | $ | (147,693 | ) | $ | (2,742,138 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||
GBP | 49,932,000 | USD | 63,778,144 | MS | 03/03/20 | $ | 242,166 | |||||||||
USD | 65,428,329 | GBP | 49,932,000 | MS | 03/03/20 | 1,408,019 | ||||||||||
GBP | 3,798,000 | USD | 4,856,939 | MS | 04/02/20 | 16,820 | ||||||||||
USD | 63,459,334 | GBP | 49,255,000 | MS | 04/02/20 | 253,169 | ||||||||||
1,920,174 | ||||||||||||||||
GBP | 49,932,000 | USD | 64,302,131 | MS | 03/03/20 | (281,821 | ) | |||||||||
USD | 63,778,144 | GBP | 49,932,000 | MS | 03/03/20 | (242,166 | ) | |||||||||
(523,987 | ) | |||||||||||||||
Net unrealized appreciation | $ | 1,396,187 |
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) | iShares® Currency Hedged MSCI United Kingdom ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 1,920,174 | ||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 523,987 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign | ||||
Currency | ||||
Exchange | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | (3,528,111 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 1,339,017 |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 97,746,519 | ||
Average amounts sold — in USD | $ | 149,059,747 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 1,920,174 | $ | 523,987 | ||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 1,920,174 | $ | 523,987 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
Total derivative assets and liabilities subject to an MNA | $ | 1,920,174 | $ | 523,987 |
The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
Counterparty | Derivative Assets Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Cash Collateral Received(b) | Net Amount of Derivative Assets(c)(d) | ||||||||||||
Morgan Stanley & Co. International PLC | $ | 1,920,174 | $ | (523,987 | ) | $ | (1,120,000 | ) | $ | 276,187 |
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Cash Collateral Pledged | Net Amount of Derivative Liabilities | ||||||||||||
Morgan Stanley & Co. International PLC | $ | 523,987 | $ | (523,987 | ) | $ | — | $ | — |
8 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI United Kingdom ETF |
February 29, 2020 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(d) | Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 58,187,251 | $ | — | $ | — | $ | 58,187,251 | ||||||||
Money Market Funds | 761,000 | — | — | 761,000 | ||||||||||||
$ | 58,948,251 | $ | — | $ | — | $ | 58,948,251 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 1,920,174 | $ | — | $ | 1,920,174 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (523,987 | ) | — | (523,987 | ) | ||||||||||
$ | — | $ | 1,396,187 | $ | — | $ | 1,396,187 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 9 |
Schedule of Investments (unaudited) | iShares® MSCI United Kingdom ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 2.1% | ||||||||
BAE Systems PLC | 3,565,420 | $ | 27,707,226 | |||||
Meggitt PLC | 857,966 | 5,939,673 | ||||||
Rolls-Royce Holdings PLC | 1,933,394 | 15,311,058 | ||||||
48,957,957 | ||||||||
Airlines — 0.1% | ||||||||
easyJet PLC | 174,275 | 2,449,730 | ||||||
Banks — 11.8% | ||||||||
Barclays PLC | 19,214,341 | 36,504,501 | ||||||
HSBC Holdings PLC | 22,597,502 | 151,217,476 | ||||||
Lloyds Banking Group PLC | 77,833,532 | 49,907,246 | ||||||
Royal Bank of Scotland Group PLC | 5,374,811 | 12,264,769 | ||||||
Standard Chartered PLC | 3,021,846 | 21,715,269 | ||||||
271,609,261 | ||||||||
Beverages — 4.3% | ||||||||
Coca-Cola HBC AG | 223,133 | 7,051,097 | ||||||
Diageo PLC | 2,610,831 | 92,224,344 | ||||||
99,275,441 | ||||||||
Capital Markets — 3.3% | ||||||||
3i Group PLC | 1,081,206 | 13,920,734 | ||||||
Hargreaves Lansdown PLC | 368,410 | 7,230,313 | ||||||
London Stock Exchange Group PLC | 349,617 | 33,831,843 | ||||||
Schroders PLC | 138,439 | 5,046,678 | ||||||
St. James’s Place PLC | 590,753 | 7,662,651 | ||||||
Standard Life Aberdeen PLC | 2,612,640 | 9,223,819 | ||||||
76,916,038 | ||||||||
Chemicals — 0.7% | ||||||||
Croda International PLC | 143,379 | 8,340,109 | ||||||
Johnson Matthey PLC | 215,383 | 6,907,983 | ||||||
15,248,092 | ||||||||
Commercial Services & Supplies — 0.7% | ||||||||
G4S PLC | 1,713,440 | 3,745,751 | ||||||
Rentokil Initial PLC | 2,057,401 | 12,719,132 | ||||||
16,464,883 | ||||||||
Diversified Financial Services — 0.3% | ||||||||
M&G PLC(a) | 2,892,370 | 7,344,519 | ||||||
Diversified Telecommunication Services — 0.7% | ||||||||
BT Group PLC | 9,316,973 | 16,853,596 | ||||||
Electric Utilities — 1.0% | ||||||||
SSE PLC | 1,151,139 | 22,481,662 | ||||||
Electrical Equipment — 0.6% | ||||||||
Melrose Industries PLC | 5,395,953 | 14,432,381 | ||||||
Electronic Equipment, Instruments & Components — 0.5% | ||||||||
Halma PLC | 419,211 | 10,328,995 | ||||||
Equity Real Estate Investment Trusts (REITs) — 1.2% | ||||||||
British Land Co. PLC (The) | 975,100 | 6,239,935 | ||||||
Land Securities Group PLC | 785,960 | 8,378,610 | ||||||
Segro PLC | 1,216,785 | 12,763,093 | ||||||
27,381,638 | ||||||||
Food & Staples Retailing — 1.8% | ||||||||
J Sainsbury PLC | 1,976,996 | 4,943,115 | ||||||
Tesco PLC | 10,878,275 | 31,749,683 |
Security | Shares | Value | ||||||
Food & Staples Retailing (continued) | ||||||||
Wm Morrison Supermarkets PLC | 2,663,224 | $ | 5,825,476 | |||||
42,518,274 | ||||||||
Food Products — 0.5% | ||||||||
Associated British Foods PLC | 396,222 | 11,412,434 | ||||||
Health Care Equipment & Supplies — 0.9% | ||||||||
Smith & Nephew PLC | 970,352 | 21,553,710 | ||||||
Health Care Providers & Services — 0.1% | ||||||||
NMC Health PLC | 139,672 | 1,674,135 | ||||||
Hotels, Restaurants & Leisure — 3.1% | ||||||||
Carnival PLC | 176,735 | 5,496,860 | ||||||
Compass Group PLC | 1,761,040 | 38,475,604 | ||||||
GVC Holdings PLC | 649,176 | 6,547,308 | ||||||
InterContinental Hotels Group PLC | 192,526 | 10,579,203 | ||||||
TUI AG | 492,012 | 3,770,684 | ||||||
Whitbread PLC | 147,635 | 7,343,083 | ||||||
72,212,742 | ||||||||
Household Durables — 1.8% | ||||||||
Barratt Developments PLC | 1,133,814 | 10,965,933 | ||||||
Berkeley Group Holdings PLC | 131,835 | 8,005,400 | ||||||
Persimmon PLC | 354,845 | 12,867,591 | ||||||
Taylor Wimpey PLC | 3,621,163 | 9,352,385 | ||||||
41,191,309 | ||||||||
Household Products — 2.5% | ||||||||
Reckitt Benckiser Group PLC | 789,218 | 57,671,611 | ||||||
Industrial Conglomerates — 0.7% | ||||||||
DCC PLC | 109,313 | 7,724,087 | ||||||
Smiths Group PLC | 437,461 | 8,565,932 | ||||||
16,290,019 | ||||||||
Insurance — 4.7% | ||||||||
Admiral Group PLC | 210,895 | 5,689,228 | ||||||
Aviva PLC | 4,345,013 | 19,469,008 | ||||||
Direct Line Insurance Group PLC | 1,534,477 | 6,017,165 | ||||||
Legal & General Group PLC | 6,613,662 | 21,963,851 | ||||||
Prudential PLC | 2,892,527 | 46,810,921 | ||||||
RSA Insurance Group PLC | 1,151,515 | 7,630,671 | ||||||
107,580,844 | ||||||||
Interactive Media & Services — 0.3% | ||||||||
Auto Trader Group PLC(b) | 1,022,988 | 6,789,422 | ||||||
Internet & Direct Marketing Retail — 0.3% | ||||||||
Ocado Group PLC(a) | 507,444 | 6,896,407 | ||||||
Machinery — 0.6% | ||||||||
Spirax-Sarco Engineering PLC | 81,986 | 8,791,309 | ||||||
Weir Group PLC (The) | 286,660 | 4,780,102 | ||||||
13,571,411 | ||||||||
Media — 1.6% | ||||||||
Informa PLC | 1,391,740 | 12,130,823 | ||||||
ITV PLC | 3,993,821 | 5,945,577 | ||||||
Pearson PLC | 869,987 | 6,196,247 | ||||||
WPP PLC | 1,401,451 | 13,475,680 | ||||||
37,748,327 | ||||||||
Metals & Mining — 7.0% | ||||||||
Anglo American PLC | 1,148,954 | 26,295,736 | ||||||
Antofagasta PLC | 439,230 | 4,218,936 | ||||||
BHP Group PLC | 2,349,661 | 42,569,356 |
10 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI United Kingdom ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Evraz PLC | 557,061 | $ | 2,321,737 | |||||
Glencore PLC | 11,876,064 | 29,316,199 | ||||||
Rio Tinto PLC | 1,254,399 | 57,808,990 | ||||||
162,530,954 | ||||||||
Multi-Utilities — 2.4% | ||||||||
Centrica PLC | 6,425,290 | 5,918,908 | ||||||
National Grid PLC | 3,872,252 | 48,609,585 | ||||||
54,528,493 | ||||||||
Multiline Retail — 0.7% | ||||||||
Marks & Spencer Group PLC | 2,153,493 | 4,357,042 | ||||||
Next PLC | 148,235 | 11,515,700 | ||||||
15,872,742 | ||||||||
Oil, Gas & Consumable Fuels — 13.0% | ||||||||
BP PLC | 22,549,809 | 114,102,637 | ||||||
Royal Dutch Shell PLC, Class A | 4,650,654 | 98,691,872 | ||||||
Royal Dutch Shell PLC, Class B | 4,154,035 | 88,269,815 | ||||||
301,064,324 | ||||||||
Paper & Forest Products — 0.5% | ||||||||
Mondi PLC | 536,178 | 10,697,522 | ||||||
Personal Products — 2.9% | ||||||||
Unilever PLC | 1,233,930 | 65,723,356 | ||||||
Pharmaceuticals — 10.3% | ||||||||
AstraZeneca PLC | 1,459,484 | 126,653,744 | ||||||
GlaxoSmithKline PLC | 5,550,116 | 110,746,968 | ||||||
237,400,712 | ||||||||
Professional Services — 4.2% | ||||||||
Experian PLC | 1,012,147 | 33,496,864 | ||||||
Intertek Group PLC | 179,510 | 12,083,491 | ||||||
RELX PLC | 2,157,991 | 51,475,834 | ||||||
97,056,189 | ||||||||
Software — 0.8% | ||||||||
AVEVA Group PLC | 72,498 | 4,063,365 | ||||||
Micro Focus International PLC | 374,222 | 3,540,502 | ||||||
Sage Group PLC (The) | 1,202,025 | 10,467,998 | ||||||
18,071,865 | ||||||||
Specialty Retail — 0.4% | ||||||||
JD Sports Fashion PLC | 491,236 | 4,624,351 | ||||||
Kingfisher PLC | 2,327,084 | 5,628,213 | ||||||
10,252,564 |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods — 0.4% | ||||||||
Burberry Group PLC | 458,186 | $ | 9,650,629 | |||||
Tobacco — 5.2% | ||||||||
British American Tobacco PLC | 2,551,883 | 99,822,860 | ||||||
Imperial Brands PLC . | 1,057,382 | 20,999,047 | ||||||
120,821,907 | ||||||||
Trading Companies & Distributors — 2.0% | ||||||||
Ashtead Group PLC | 506,766 | 15,463,820 | ||||||
Bunzl PLC | 374,081 | 8,935,120 | ||||||
Ferguson PLC | 252,021 | 21,696,505 | ||||||
46,095,445 | ||||||||
Water Utilities — 0.8% | ||||||||
Severn Trent PLC | 262,658 | 8,269,909 | ||||||
United Utilities Group PLC | 758,247 | 9,144,666 | ||||||
17,414,575 | ||||||||
Wireless Telecommunication Services — 2.2% | ||||||||
Vodafone Group PLC | 29,779,869 | 51,107,652 | ||||||
Total Common Stocks — 99.0% | ||||||||
(Cost: $2,995,918,956) | 2,285,143,767 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 1,145,000 | 1,145,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $1,145,000) | 1,145,000 | |||||||
Total Investments in Securities — 99.0% | ||||||||
(Cost: $2,997,063,956) | 2,286,288,767 | |||||||
Other Assets, Less Liabilities — 1.0% | 22,441,303 | |||||||
Net Assets — 100.0% | $ | 2,308,730,070 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 2,504,668 | (2,504,668 | ) | — | $ | — | $ | 9,589 | (b) | $ | 421 | $ | (323 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 868,000 | 277,000 | 1,145,000 | 1,145,000 | 10,602 | — | — | |||||||||||||||||||||
$ | 1,145,000 | $ | 20,191 | $ | 421 | $ | (323 | ) |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
S c h e d u l e o f I n v e s t m e n t s | 11 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI United Kingdom ETF |
February 29, 2020 |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
FTSE 100 Index | 272 | 03/20/20 | $ | 22,682 | $ | (2,256,446 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 2,256,446 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 1,309,465 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (2,146,470 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 22,587,221 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 2,285,143,767 | $ | — | $ | — | $ | 2,285,143,767 | ||||||||
Money Market Funds | 1,145,000 | — | — | 1,145,000 | ||||||||||||
$ | 2,286,288,767 | $ | — | $ | — | $ | 2,286,288,767 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (2,256,446 | ) | $ | — | $ | — | $ | (2,256,446 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
12 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) | iShares® MSCI United Kingdom Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.3% | ||||||||
QinetiQ Group PLC | 177,014 | $ | 777,784 | |||||
Senior PLC | 129,255 | 233,118 | ||||||
Ultra Electronics Holdings PLC | 22,134 | 549,886 | ||||||
1,560,788 | ||||||||
Air Freight & Logistics — 0.5% | ||||||||
Royal Mail PLC | 280,985 | 583,037 | ||||||
Airlines — 0.4% | ||||||||
Dart Group PLC | 27,980 | 439,231 | ||||||
Stobart Group Ltd. | 102,713 | 101,020 | ||||||
540,251 | ||||||||
Auto Components — 0.2% | ||||||||
AB Dynamics PLC | 5,042 | 109,161 | ||||||
TI Fluid Systems PLC(a) | 74,242 | 191,081 | ||||||
300,242 | ||||||||
Automobiles — 0.1% | ||||||||
Aston Martin Lagonda Global Holdings PLC(a)(b)(c) | 18,087 | 78,087 | ||||||
Banks — 0.9% | ||||||||
Bank of Georgia Group PLC | 13,138 | 283,937 | ||||||
Virgin Money UK PLC(b) | 411,483 | 798,105 | ||||||
1,082,042 | ||||||||
Beverages — 1.7% | ||||||||
AG Barr PLC | 32,034 | 218,906 | ||||||
Britvic PLC | 82,811 | 901,728 | ||||||
C&C Group PLC | 96,845 | 405,737 | ||||||
Fevertree Drinks PLC | 32,661 | 526,480 | ||||||
2,052,851 | ||||||||
Biotechnology — 1.5% | ||||||||
Abcam PLC | 60,939 | 899,800 | ||||||
Genus PLC | 20,281 | 818,078 | ||||||
Oxford Biomedica PLC(b) | 16,980 | 136,855 | ||||||
1,854,733 | ||||||||
Building Products — 0.4% | ||||||||
Polypipe Group PLC | 62,065 | 423,728 | ||||||
Capital Markets — 9.2% | ||||||||
Ashmore Group PLC | 133,282 | 786,855 | ||||||
Brewin Dolphin Holdings PLC | 93,654 | 364,376 | ||||||
Burford Capital Ltd. | 65,015 | 447,190 | ||||||
Close Brothers Group PLC | 47,144 | 772,585 | ||||||
CMC Markets PLC(a) | 37,355 | 71,570 | ||||||
IG Group Holdings PLC | 115,142 | 990,670 | ||||||
IntegraFin Holdings PLC | 71,855 | 439,628 | ||||||
Intermediate Capital Group PLC | 90,518 | 1,840,650 | ||||||
Investec PLC | 216,945 | 1,086,525 | ||||||
Jupiter Fund Management PLC | 142,838 | 547,341 | ||||||
Man Group PLC | 473,447 | 886,540 | ||||||
Numis Corp. PLC | 20,524 | 66,063 | ||||||
Pollen Street Secured Lending PLC | 23,405 | 258,893 | ||||||
Quilter PLC(a) | 592,866 | 1,105,612 | ||||||
Rathbone Brothers PLC | 15,877 | 336,643 | ||||||
Sanne Group PLC | 45,670 | 332,506 | ||||||
TP ICAP PLC | 175,572 | 816,748 | ||||||
11,150,395 | ||||||||
Chemicals — 1.6% | ||||||||
Elementis PLC | 179,311 | 232,240 | ||||||
Essentra PLC | 81,872 | 375,006 |
Security | Shares | Value | ||||||
Chemicals (continued) | ||||||||
Scapa Group PLC | 47,690 | $ | 102,702 | |||||
Sirius Minerals PLC(b)(c) | 2,200,702 | 124,919 | ||||||
Synthomer PLC | 105,597 | 379,820 | ||||||
Victrex PLC. | 26,948 | 721,458 | ||||||
1,936,145 | ||||||||
Commercial Services & Supplies — 3.5% | ||||||||
Aggreko PLC | 79,828 | 690,503 | ||||||
Babcock International Group PLC | 79,161 | 448,433 | ||||||
Biffa PLC(a) | 77,598 | 258,693 | ||||||
De La Rue PLC | 34,168 | 60,751 | ||||||
HomeServe PLC | 93,860 | 1,418,268 | ||||||
Mitie Group PLC | 113,714 | 203,055 | ||||||
Renewi PLC | 246,385 | 113,295 | ||||||
Restore PLC | 35,241 | 205,261 | ||||||
RPS Group PLC | 69,587 | 109,504 | ||||||
Serco Group PLC(b) | 381,285 | 743,186 | ||||||
4,250,949 | ||||||||
Communications Equipment — 0.4% | ||||||||
Spirent Communications PLC | 191,170 | 512,781 | ||||||
Construction & Engineering — 1.5% | ||||||||
Balfour Beatty PLC | 214,990 | 676,082 | ||||||
John Laing Group PLC(a) | 153,794 | 660,828 | ||||||
Keller Group PLC | 22,184 | 183,898 | ||||||
Morgan Sindall Group PLC | 11,957 | 267,883 | ||||||
1,788,691 | ||||||||
Construction Materials — 1.3% | ||||||||
Forterra PLC(a) | 61,926 | 258,255 | ||||||
Ibstock PLC(a) | 126,680 | 443,031 | ||||||
Marshalls PLC | 62,448 | 579,891 | ||||||
Rhi Magnesita NV | 6,836 | 261,076 | ||||||
1,542,253 | ||||||||
Consumer Finance — 0.6% | ||||||||
Amigo Holdings PLC(a) | 35,542 | 15,821 | ||||||
Arrow Global Group PLC | 53,423 | 161,722 | ||||||
Funding Circle Holdings PLC(a)(b) | 58,033 | 58,559 | ||||||
International Personal Finance PLC | 69,816 | 129,841 | ||||||
Provident Financial PLC | 78,299 | 401,846 | ||||||
767,789 | ||||||||
Containers & Packaging — 1.4% | ||||||||
DS Smith PLC | 427,725 | 1,716,580 | ||||||
Distributors — 0.8% | ||||||||
Inchcape PLC | 125,331 | 923,693 | ||||||
Diversified Consumer Services — 0.2% | ||||||||
AA PLC | 188,262 | 105,373 | ||||||
Dignity PLC | 14,676 | 107,506 | ||||||
212,879 | ||||||||
Diversified Financial Services — 0.3% | ||||||||
Plus500 Ltd. | 33,138 | 401,939 | ||||||
Diversified Telecommunication Services — 0.2% | ||||||||
TalkTalk Telecom Group PLC | 213,778 | 300,092 | ||||||
Electronic Equipment, Instruments & Components — 2.5% | ||||||||
Electrocomponents PLC | 139,070 | 1,076,818 | ||||||
Renishaw PLC | 11,384 | 508,055 | ||||||
Smart Metering Systems PLC(c) | 31,577 | 194,326 |
S c h e d u l e o f I n v e s t m e n t s | 13 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI United Kingdom Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Spectris PLC | 36,139 | $ | 1,253,716 | |||||
3,032,915 | ||||||||
Energy Equipment & Services — 1.2% | ||||||||
Hunting PLC | 43,585 | 177,034 | ||||||
John Wood Group PLC | 213,472 | 998,510 | ||||||
Petrofac Ltd. | 80,151 | 325,866 | ||||||
1,501,410 | ||||||||
Entertainment — 0.6% | ||||||||
Cineworld Group PLC | 320,944 | 636,025 | ||||||
Frontier Developments PLC(b) | 6,234 | 90,456 | ||||||
726,481 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 10.1% | ||||||||
Assura PLC | 751,284 | 707,237 | ||||||
Big Yellow Group PLC | 49,484 | 673,775 | ||||||
Civitas Social Housing PLC | 194,796 | 238,114 | ||||||
Custodian REIT PLC | 120,687 | 165,869 | ||||||
Derwent London PLC | 33,088 | 1,656,722 | ||||||
Empiric Student Property PLC | 186,473 | 218,651 | ||||||
GCP Student Living PLC | 140,576 | 340,083 | ||||||
Great Portland Estates PLC | 72,975 | 785,396 | ||||||
Hammerson PLC | 239,157 | 637,222 | ||||||
Intu Properties PLC(b)(c) | 288,790 | 44,836 | ||||||
LondonMetric Property PLC | 249,059 | 659,151 | ||||||
LXI REIT PLC | 162,131 | 263,833 | ||||||
NewRiver REIT PLC | 95,720 | 190,242 | ||||||
Picton Property Income Ltd. (The) | 170,588 | 213,534 | ||||||
Primary Health Properties PLC | 379,085 | 701,130 | ||||||
RDI REIT PLC | 89,083 | 129,261 | ||||||
Regional REIT Ltd.(a) | 120,408 | 172,868 | ||||||
Safestore Holdings PLC | 65,591 | 663,114 | ||||||
Schroder REIT Ltd. | 160,790 | 99,711 | ||||||
Shaftesbury PLC | 48,082 | 489,786 | ||||||
Standard Life Investment Property Income Trust Ltd. | 124,644 | 140,103 | ||||||
Tritax Big Box REIT PLC | 532,005 | 883,389 | ||||||
UK Commercial Property REIT Ltd. | 241,525 | 245,566 | ||||||
UNITE Group PLC (The) | 90,640 | 1,311,726 | ||||||
Workspace Group PLC | 42,253 | 610,938 | ||||||
12,242,257 | ||||||||
Food & Staples Retailing — 0.0% | �� | |||||||
Just Eat Takeaway(a)(b) | 146 | 12,709 | ||||||
Food Products — 2.2% | ||||||||
Bakkavor Group PLC(a) | 45,186 | 63,603 | ||||||
Cranswick PLC | 16,233 | 690,456 | ||||||
Greencore Group PLC | 139,017 | 371,647 | ||||||
Hotel Chocolat Group PLC(c) | 12,288 | 63,959 | ||||||
Premier Foods PLC(b) | 212,638 | 89,222 | ||||||
Tate & Lyle PLC | 145,978 | 1,315,646 | ||||||
2,594,533 | ||||||||
Health Care Equipment & Supplies — 1.2% | ||||||||
Advanced Medical Solutions Group PLC | 60,482 | 196,224 | ||||||
ConvaTec Group PLC(a) | 463,645 | 1,214,039 | ||||||
1,410,263 | ||||||||
Health Care Providers & Services — 1.4% | ||||||||
CVS Group PLC | 20,982 | 285,691 | ||||||
Mediclinic International PLC | 126,629 | 548,310 | ||||||
Spire Healthcare Group PLC(a) | 86,062 | 127,076 |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
UDG Healthcare PLC | 77,939 | $ | 698,354 | |||||
1,659,431 | ||||||||
Health Care Technology — 0.3% | ||||||||
Craneware PLC(c) | 6,251 | 151,305 | ||||||
EMIS Group PLC | 15,649 | 227,069 | ||||||
378,374 | ||||||||
Hotels, Restaurants & Leisure — 3.8% | ||||||||
888 Holdings PLC | 114,378 | 166,548 | ||||||
Domino’s Pizza Group PLC | 144,401 | 545,953 | ||||||
Gamesys Group PLC(b) | 23,655 | 213,617 | ||||||
Greggs PLC . | 31,527 | 841,632 | ||||||
J D Wetherspoon PLC | 21,105 | 362,308 | ||||||
Marston’s PLC | 197,173 | 226,790 | ||||||
Mitchells & Butlers PLC(b) | 59,583 | 254,953 | ||||||
Patisserie Holdings PLC(d) | 6,053 | — | ||||||
Playtech PLC | 96,071 | 306,779 | ||||||
Restaurant Group PLC (The) | 153,506 | 207,838 | ||||||
SSP Group PLC | 138,588 | 897,484 | ||||||
William Hill PLC | 272,979 | 519,004 | ||||||
4,542,906 | ||||||||
Household Durables — 4.5% | ||||||||
Bellway PLC | 38,387 | 1,825,452 | ||||||
Countryside Properties PLC(a) | 140,249 | 842,317 | ||||||
Crest Nicholson Holdings PLC | 80,433 | 464,372 | ||||||
IG Design Group PLC | 22,216 | 207,149 | ||||||
McCarthy & Stone PLC(a) | 117,531 | 201,164 | ||||||
Redrow PLC | 71,364 | 680,003 | ||||||
Victoria PLC(b) | 32,646 | 144,278 | ||||||
Vistry Group PLC | 67,858 | 1,108,574 | ||||||
5,473,309 | ||||||||
Household Products — 0.2% | ||||||||
PZ Cussons PLC | 81,106 | 187,510 | ||||||
Independent Power and Renewable Electricity Producers — 0.4% | ||||||||
Drax Group PLC | 123,180 | 424,812 | ||||||
Insurance — 4.6% | ||||||||
Beazley PLC | 165,084 | 1,127,057 | ||||||
Hastings Group Holdings PLC(a) | 112,470 | 234,163 | ||||||
Hiscox Ltd. | 89,916 | 1,408,058 | ||||||
Just Group PLC(b) | 321,709 | 298,327 | ||||||
Lancashire Holdings Ltd. | 59,917 | 554,475 | ||||||
Phoenix Group Holdings PLC | 168,652 | 1,488,978 | ||||||
Sabre Insurance Group PLC(a) | 73,561 | 263,556 | ||||||
Saga PLC | 356,373 | 147,028 | ||||||
5,521,642 | ||||||||
Interactive Media & Services — 1.8% | ||||||||
Rightmove PLC | 274,317 | 2,168,885 | ||||||
Internet & Direct Marketing Retail — 2.8% | ||||||||
AO World PLC(b) | 76,514 | 60,105 | ||||||
ASOS PLC(b) | 18,313 | 701,035 | ||||||
boohoo Group PLC(b) | 234,033 | 869,888 | ||||||
GoCo Group PLC | 99,363 | 104,198 | ||||||
Moneysupermarket.com Group PLC | 167,268 | 663,388 | ||||||
N Brown Group PLC | 48,981 | 35,974 | ||||||
On the Beach Group PLC(a) | 37,454 | 154,619 | ||||||
Trainline PLC(a)(b) | 142,321 | 843,490 | ||||||
3,432,697 |
14 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI United Kingdom Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
IT Services — 2.6% | ||||||||
Computacenter PLC | 23,205 | $ | 489,945 | |||||
Equiniti Group PLC(a) | 112,758 | 289,204 | ||||||
Finablr PLC(a)(b) | 62,689 | 48,924 | ||||||
iomart Group PLC | 23,391 | 103,973 | ||||||
Kainos Group PLC | 22,768 | 216,949 | ||||||
Keywords Studios PLC(c) | 17,090 | 334,640 | ||||||
NCC Group PLC | 87,011 | 230,614 | ||||||
Network International Holdings PLC(a)(b) | 132,458 | 908,543 | ||||||
Softcat PLC | 37,197 | 501,724 | ||||||
3,124,516 | ||||||||
Leisure Products — 0.7% | ||||||||
Games Workshop Group PLC | 9,624 | 774,443 | ||||||
Photo-Me International PLC | 85,023 | 90,572 | ||||||
865,015 | ||||||||
Life Sciences Tools & Services — 0.3% | ||||||||
Clinigen Healthcare Ltd.(b) | 39,555 | 362,760 | ||||||
Machinery — 2.8% | ||||||||
Bodycote PLC | 59,779 | 583,358 | ||||||
IMI PLC | 84,833 | 1,090,074 | ||||||
Morgan Advanced Materials PLC | 89,395 | 317,433 | ||||||
Rotork PLC | 271,809 | 977,664 | ||||||
Vesuvius PLC | 67,032 | 361,830 | ||||||
3,330,359 | ||||||||
Media — 1.8% | ||||||||
Ascential PLC(a) | 125,849 | 549,433 | ||||||
Daily Mail & General Trust PLC, Class A, NVS | 49,394 | 466,873 | ||||||
Euromoney Institutional Investor PLC | 34,216 | 472,005 | ||||||
Future PLC | 30,334 | 447,900 | ||||||
Hyve Group PLC | 229,120 | 226,222 | ||||||
2,162,433 | ||||||||
Metals & Mining — 1.6% | ||||||||
Centamin PLC | 360,569 | 593,886 | ||||||
Central Asia Metals PLC | 48,609 | 114,863 | ||||||
Ferrexpo PLC | 90,288 | 149,057 | ||||||
Hill & Smith Holdings PLC | 24,636 | 420,722 | ||||||
Hochschild Mining PLC | 80,879 | 164,981 | ||||||
KAZ Minerals PLC | 81,419 | 426,282 | ||||||
SolGold PLC(b)(c) | 216,667 | 47,213 | ||||||
1,917,004 | ||||||||
Multi-Utilities — 0.3% | ||||||||
Telecom Plus PLC | 19,526 | 332,707 | ||||||
Multiline Retail — 1.0% | ||||||||
B&M European Value Retail SA | 280,656 | 1,194,104 | ||||||
Oil, Gas & Consumable Fuels — 1.2% | ||||||||
Anglo Pacific Group PLC | 53,215 | 88,023 | ||||||
Cairn Energy PLC(b) | 184,157 | 327,196 | ||||||
Diversified Gas & Oil PLC | 197,953 | 201,265 | ||||||
EnQuest PLC(b) | 441,804 | 112,863 | ||||||
Gulf Keystone Petroleum Ltd. | 68,447 | 129,567 | ||||||
Hurricane Energy PLC(b)(c) | 489,316 | 92,501 | ||||||
Pharos Energy PLC | 77,135 | 30,149 | ||||||
Premier Oil PLC(b)(c) | 256,899 | 254,766 | ||||||
Serica Energy PLC(b) | 54,990 | 68,764 | ||||||
Tullow Oil PLC | 436,778 | 188,011 | ||||||
1,493,105 |
Security | Shares | Value | ||||||
Pharmaceuticals — 2.1% | ||||||||
Alliance Pharma PLC | 128,458 | $ | 124,044 | |||||
Dechra Pharmaceuticals PLC | 32,044 | 1,083,003 | ||||||
Hikma Pharmaceuticals PLC | 45,312 | 1,034,842 | ||||||
Indivior PLC(b) | 228,925 | 126,465 | ||||||
Vectura Group PLC | 183,703 | 205,783 | ||||||
2,574,137 | ||||||||
Professional Services — 2.1% | ||||||||
Capita PLC(b) | 520,075 | 858,930 | ||||||
Hays PLC | 457,264 | 807,760 | ||||||
Pagegroup PLC | 102,697 | 533,095 | ||||||
RWS Holdings PLC | 55,977 | 375,372 | ||||||
2,575,157 | ||||||||
Real Estate Management & Development — 3.5% | ||||||||
Capital & Counties Properties PLC | 226,317 | 572,368 | ||||||
Grainger PLC | 190,827 | 722,456 | ||||||
Helical PLC | 34,123 | 205,069 | ||||||
IWG PLC | 207,006 | 929,926 | ||||||
Purplebricks Group PLC(b)(c) | 71,110 | 81,292 | ||||||
Savills PLC | 44,627 | 616,763 | ||||||
Sirius Real Estate Ltd. | 289,449 | 297,989 | ||||||
St. Modwen Properties PLC | 62,384 | 382,081 | ||||||
Urban & Civic PLC | 45,335 | 202,672 | ||||||
Watkin Jones PLC | 47,146 | 153,560 | ||||||
4,164,176 | ||||||||
Road & Rail — 1.8% | ||||||||
Firstgroup PLC(b) | 379,457 | 570,954 | ||||||
Go-Ahead Group PLC (The) | 13,419 | 334,061 | ||||||
National Express Group PLC | 143,542 | 776,655 | ||||||
Northgate PLC | 76,995 | 242,914 | ||||||
Stagecoach Group PLC | 130,921 | 217,560 | ||||||
2,142,144 | ||||||||
Semiconductors & Semiconductor Equipment — 0.1% | ||||||||
IQE PLC(b)(c) | 250,351 | 153,491 | ||||||
Software — 1.9% | ||||||||
Alfa Financial Software Holdings PLC(a)(b) | 25,734 | 27,611 | ||||||
Avast PLC(a) | 185,149 | 931,301 | ||||||
Blue Prism Group PLC(b)(c) | 20,074 | 370,762 | ||||||
First Derivatives PLC | 5,825 | 205,724 | ||||||
GB Group PLC . | 57,538 | 474,032 | ||||||
Learning Technologies Group PLC | 145,338 | 255,441 | ||||||
2,264,871 | ||||||||
Specialty Retail — 2.5% | ||||||||
Card Factory PLC | 103,398 | 103,939 | ||||||
Dixons Carphone PLC | 309,082 | 480,460 | ||||||
Dunelm Group PLC | 31,640 | 439,702 | ||||||
Frasers Group PLC(b) | 65,254 | 319,893 | ||||||
Halfords Group PLC | 62,002 | 118,793 | ||||||
Lookers PLC | 107,060 | 61,879 | ||||||
Pets at Home Group PLC | 156,251 | 513,718 | ||||||
Superdry PLC | 15,884 | 62,895 | ||||||
WH Smith PLC | 35,860 | 882,643 | ||||||
2,983,922 | ||||||||
Textiles, Apparel & Luxury Goods — 0.3% | ||||||||
Coats Group PLC | 447,537 | 339,554 | ||||||
Ted Baker PLC | 8,898 | 33,028 | ||||||
372,582 |
S c h e d u l e o f I n v e s t m e n t s | 15 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI United Kingdom Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Thrifts & Mortgage Finance — 1.0% | ||||||||
OneSavings Bank PLC | 138,674 | $ | 711,348 | |||||
Paragon Banking Group PLC | 79,981 | 464,827 | ||||||
1,176,175 | ||||||||
Trading Companies & Distributors — 4.0% | ||||||||
Diploma PLC | 35,293 | 847,500 | ||||||
Grafton Group PLC | 74,113 | 816,009 | ||||||
Howden Joinery Group PLC | 186,578 | 1,515,691 | ||||||
SIG PLC | 174,017 | 140,253 | ||||||
Travis Perkins PLC | 78,585 | 1,466,503 | ||||||
4,785,956 | ||||||||
Transportation Infrastructure — 0.8% | ||||||||
John Menzies PLC | 21,915 | 81,177 | ||||||
Signature Aviation PLC | 257,951 | 921,229 | ||||||
1,002,406 | ||||||||
Water Utilities — 1.5% | ||||||||
Pennon Group PLC | 131,196 | 1,806,477 | ||||||
Wireless Telecommunication Services — 0.2% | ||||||||
Airtel Africa PLC(a) | 231,621 | 191,859 | ||||||
Total Common Stocks — 99.7% | ||||||||
(Cost: $133,690,428) | 120,265,435 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | ||||||||
1.74%(e)(f)(g) | 1,612,361 | 1,613,490 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, | ||||||||
1.52%(e)(f) | 62,000 | $ | 62,000 | |||||
1,675,490 | ||||||||
Total Short-Term Investments — 1.4% | ||||||||
(Cost: $1,674,705) | 1,675,490 | |||||||
Total Investments in Securities — 101.1% | ||||||||
(Cost: $135,365,133) | 121,940,925 | |||||||
Other Assets, Less Liabilities — (1.1)% | (1,328,270 | ) | ||||||
Net Assets — 100.0% | $ | 120,612,655 |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Non-income producing security. |
(c) | All or a portion of this security is on loan. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Affiliate of the Fund. |
(f) | Annualized 7-day yield as of period-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 1,482,477 | 129,884 | 1,612,361 | $ | 1,613,490 | $ | 28,660 | (b) | $ | (26 | ) | $ | 409 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 27,000 | 35,000 | 62,000 | 62,000 | 983 | — | — | |||||||||||||||||||||
$ | 1,675,490 | $ | 29,643 | $ | (26 | ) | $ | 409 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
FTSE 250 Index | 6 | 03/20/20 | $ | 297 | $ | (16,517 | ) |
16 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI United Kingdom Small-Cap ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 16,517 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (79,415 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (16,517 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 98,981 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 120,265,435 | $ | — | $ | 0 | (a) | $ | 120,265,435 | |||||||
Money Market Funds | 1,675,490 | — | — | 1,675,490 | ||||||||||||
$ | 121,940,925 | $ | — | $ | 0 | (a) | $ | 121,940,925 | ||||||||
Derivative financial instruments(b) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (16,517 | ) | $ | — | $ | — | $ | (16,517 | ) |
(a) | Rounds to less than $1. |
(b) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 17 |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
Shares | ||||||||||||
Currency | Shares | |||||||||||
Hedged | MSCI United | |||||||||||
MSCI United | Shares | Kingdom | ||||||||||
Kingdom | MSCI United | Small-Cap | ||||||||||
ETF | Kingdom ETF | ETF | ||||||||||
ASSETS Investments in securities, at value (including securities on loan)(a) | ||||||||||||
Unaffiliated(b) | $ | — | $ | 2,285,143,767 | $ | 120,265,435 | ||||||
Affiliated(c) | 58,948,251 | 1,145,000 | 1,675,490 | |||||||||
Cash | 400,363 | 537 | 195 | |||||||||
Foreign currency, at value(d) | — | 2,950,962 | 1,742,683 | |||||||||
Foreign currency collateral pledged: | ||||||||||||
Futures contracts(e) | — | 1,172,920 | 80,470 | |||||||||
Receivables: | ||||||||||||
Investments sold | — | 3,872,377 | — | |||||||||
Securities lending income — Affiliated | — | — | 4,573 | |||||||||
Dividends | 729 | 20,082,125 | 84,928 | |||||||||
Tax reclaims | — | 55,811 | 13,404 | |||||||||
Unrealized appreciation on: | ||||||||||||
Forward foreign currency exchange contracts | 1,920,174 | — | — | |||||||||
Total assets | 61,269,517 | 2,314,423,499 | 123,867,178 | |||||||||
LIABILITIES | ||||||||||||
Cash received: | ||||||||||||
Collateral — forward foreign currency exchange contracts | 1,120,000 | — | — | |||||||||
Collateral on securities loaned, at value | — | — | 1,612,831 | |||||||||
Payables: | ||||||||||||
Investments purchased | 1,087,855 | 3,596,788 | 1,552,297 | |||||||||
Variation margin on futures contracts | — | 867,385 | 28,084 | |||||||||
Capital shares redeemed | — | 195,732 | — | |||||||||
Investment advisory fees | — | 1,033,524 | 61,311 | |||||||||
Unrealized depreciation on: | ||||||||||||
Forward foreign currency exchange contracts | 523,987 | — | — | |||||||||
Total liabilities | 2,731,842 | 5,693,429 | 3,254,523 | |||||||||
NET ASSETS | $ | 58,537,675 | $ | 2,308,730,070 | $ | 120,612,655 | ||||||
NET ASSETS CONSIST OF | ||||||||||||
Paid-in capital | $ | 69,645,190 | $ | 3,332,634,505 | $ | 136,169,577 | ||||||
Accumulated loss | (11,107,515 | ) | (1,023,904,435 | ) | (15,556,922 | ) | ||||||
NET ASSETS | $ | 58,537,675 | $ | 2,308,730,070 | $ | 120,612,655 | ||||||
Shares outstanding | 2,700,000 | 80,200,000 | 3,200,000 | |||||||||
Net asset value | $ | 21.68 | $ | 28.79 | $ | 37.69 | ||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
Par value | None | None | None | |||||||||
(a) Securities loaned, at value | $ | — | $ | — | $ | 1,451,222 | ||||||
(b) Investments, at cost — Unaffiliated | $ | — | $ | 2,995,918,956 | $ | 133,690,428 | ||||||
(c) Investments, at cost — Affiliated | $ | 63,093,416 | $ | 1,145,000 | $ | 1,674,705 | ||||||
(d) Foreign currency, at cost | $ | — | $ | 3,008,524 | $ | 1,758,026 | ||||||
(e) Foreign currency collateral pledged, at cost | $ | — | $ | 1,188,584 | $ | 81,394 |
See notes to financial statements.
18 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares | ||||||||||||
Currency | iShares | |||||||||||
Hedged | iShares | MSCI United | ||||||||||
MSCI United | MSCI United | Kingdom | ||||||||||
Kingdom | Kingdom | Small-Cap | ||||||||||
ETF | ETF | ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Unaffiliated | $ | — | $ | 45,585,733 | $ | 1,083,311 | ||||||
Dividends — Affiliated | 1,116,380 | 10,602 | 983 | |||||||||
Non-cash dividends — Unaffiliated | — | — | 264,120 | |||||||||
Interest — Unaffiliated | — | 1,134 | 6 | |||||||||
Securities lending income — Affiliated — net | — | 9,589 | 28,660 | |||||||||
Foreign taxes withheld | — | (789,766 | ) | (22,004 | ) | |||||||
Total investment income | 1,116,380 | 44,817,292 | 1,355,076 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees | 175,697 | 5,967,231 | 271,137 | |||||||||
Total expenses | 175,697 | 5,967,231 | 271,137 | |||||||||
Less: | ||||||||||||
Investment advisory fees waived | (175,697 | ) | — | — | ||||||||
Total expenses after fees waived | — | 5,967,231 | 271,137 | |||||||||
Net investment income | 1,116,380 | 38,850,061 | 1,083,939 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | — | (25,159,663 | ) | (271,235 | ) | |||||||
Investments — Affiliated | (354,188 | ) | 421 | (26 | ) | |||||||
In-kind redemptions — Unaffiliated | — | 5,744,882 | 589,326 | |||||||||
In-kind redemptions — Affiliated | 206,495 | — | — | |||||||||
Futures contracts | — | 1,309,465 | (79,415 | ) | ||||||||
Forward foreign currency exchange contracts | (3,528,111 | ) | — | — | ||||||||
Foreign currency transactions | — | 953,353 | 17,878 | |||||||||
Net realized gain (loss) | (3,675,804 | ) | (17,151,542 | ) | 256,528 | |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated | — | (126,746,097 | ) | (4,049,081 | ) | |||||||
Investments — Affiliated | (2,742,138 | ) | (323 | ) | 409 | |||||||
Futures contracts | — | (2,146,470 | ) | (16,517 | ) | |||||||
Forward foreign currency exchange contracts | 1,339,017 | — | — | |||||||||
Foreign currency translations | — | (135,962 | ) | (15,942 | ) | |||||||
Net change in unrealized appreciation (depreciation) | (1,403,121 | ) | (129,028,852 | ) | (4,081,131 | ) | ||||||
Net realized and unrealized loss | (5,078,925 | ) | (146,180,394 | ) | (3,824,603 | ) | ||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (3,962,545 | ) | $ | (107,330,333 | ) | $ | (2,740,664 | ) |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 19 |
Statements of Changes in Net Assets
iShares | ||||||||||||||||
Currency Hedged MSCI United Kingdom | iShares | |||||||||||||||
ETF | MSCI United Kingdom ETF | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
02/29/20 | Year Ended | 02/29/20 | Year Ended | |||||||||||||
(unaudited) | 08/31/19 | (unaudited) | 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 1,116,380 | $ | 630,045 | $ | 38,850,061 | $ | 94,432,632 | ||||||||
Net realized gain (loss) | (3,675,804 | ) | 997,815 | (17,151,542 | ) | (62,577,464 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (1,403,121 | ) | (918,926 | ) | (129,028,852 | ) | (150,368,603 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | (3,962,545 | ) | 708,934 | (107,330,333 | ) | (118,513,435 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (1,095,078 | ) | (630,281 | ) | (44,788,146 | ) | (92,775,686 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 28,448,979 | 12,425,088 | 460,126,552 | 225,039,997 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 23,391,356 | 12,503,741 | 308,008,073 | 13,750,876 | ||||||||||||
Beginning of period | 35,146,319 | 22,642,578 | 2,000,721,997 | 1,986,971,121 | ||||||||||||
End of period | $ | 58,537,675 | $ | 35,146,319 | $ | 2,308,730,070 | $ | 2,000,721,997 |
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
20 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares MSCI United Kingdom Small-Cap ETF | ||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,083,939 | $ | 1,622,981 | ||||
Net realized gain (loss) | 256,528 | (38,950 | ) | |||||
Net change in unrealized appreciation (depreciation) | (4,081,131 | ) | (9,242,245 | ) | ||||
Net decrease in net assets resulting from operations | (2,740,664 | ) | (7,658,214 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (1,446,293 | ) | (1,591,702 | ) | ||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 63,690,484 | 12,788,229 | ||||||
NET ASSETS | ||||||||
Total increase in net assets | 59,503,527 | 3,538,313 | ||||||
Beginning of period | 61,109,128 | 57,570,815 | ||||||
End of period | $ | 120,612,655 | $ | 61,109,128 |
(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 | 21 |
Financial Highlights
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI United Kingdom ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Period From 06/29/15(a) to 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.43 | $ | 23.83 | $ | 23.84 | $ | 24.87 | $ | 23.21 | $ | 24.35 | ||||||||||||
Net investment income (loss)(b) | 0.47 | 0.92 | 1.11 | 0.48 | 0.43 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (1.80 | ) | (0.26 | ) | (0.05 | ) | 2.39 | 2.48 | (1.14 | ) | ||||||||||||||
Net increase (decrease) from investment operations | (1.33 | ) | 0.66 | 1.06 | 2.87 | 2.91 | (1.14 | ) | ||||||||||||||||
Distributions(e) | ||||||||||||||||||||||||
From net investment income | (0.42 | ) | (1.06 | ) | (1.07 | ) | (0.84 | ) | (1.01 | ) | — | |||||||||||||
From net realized gain | — | — | — | (3.06 | ) | (0.24 | ) | — | ||||||||||||||||
Total distributions | (0.42 | ) | (1.06 | ) | (1.07 | ) | (3.90 | ) | (1.25 | ) | — | |||||||||||||
Net asset value, end of period | $ | 21.68 | $ | 23.43 | $ | 23.83 | $ | 23.84 | $ | 24.87 | $ | 23.21 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (5.92 | )%(f) | 2.92 | % | 4.42 | % | 13.48 | % | 12.90 | % | (4.64 | )%(f) | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(g) | 0.62 | %(h) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(h) | ||||||||||||
Total expenses after fees waived(g) | 0.00 | %(h) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | %(h) | ||||||||||||
Net investment income (loss) | 3.94 | %(h) | 3.96 | % | 4.62 | % | 1.99 | % | 1.80 | % | (0.01 | )%(h) | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 58,538 | $ | 35,146 | $ | 22,643 | $ | 19,073 | $ | 114,398 | $ | 2,321 | ||||||||||||
Portfolio turnover rate(i)(j) | 5 | %(f) | 11 | % | 17 | % | 20 | % | 4 | % | 0 | %(f) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | Rounds to less than $0.01. |
(d) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements
22 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI United Kingdom ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17(a) | Year Ended 08/31/16(a) | Year Ended 08/31/15 | (a) | ||||||||||||||||||
Net asset value, beginning of period | $ | 30.27 | $ | 33.62 | $ | 33.76 | $ | 31.36 | $ | 34.30 | $ | 41.05 | ||||||||||||
Net investment income(b) | 0.53 | 1.49 | 1.29 | 1.13 | 1.22 | 1.30 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (1.41 | ) | (3.39 | ) | 0.06 | 2.43 | (2.73 | ) | (6.66 | ) | ||||||||||||||
Net increase (decrease) from investment operations | (0.88 | ) | (1.90 | ) | 1.35 | 3.56 | (1.51 | ) | (5.36 | ) | ||||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income | (0.60 | ) | (1.45 | ) | (1.49 | ) | (1.16 | ) | (1.43 | ) | (1.39 | ) | ||||||||||||
Total distributions | (0.60 | ) | (1.45 | ) | (1.49 | ) | (1.16 | ) | (1.43 | ) | (1.39 | ) | ||||||||||||
Net asset value, end of period | $ | 28.79 | $ | 30.27 | $ | 33.62 | $ | 33.76 | $ | 31.36 | $ | 34.30 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (3.22 | )%(e) | (5.64 | )% | 3.90 | % | 11.60 | % | (4.44 | )% | (13.26 | )% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.50 | %(f) | 0.50 | % | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||||||
Net investment income | 3.25 | %(f) | 4.64 | % | 3.66 | % | 4.07 | % | 3.80 | % | 3.46 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,308,730 | $ | 2,000,722 | $ | 1,986,971 | $ | 2,764,746 | $ | 1,928,881 | $ | 3,210,826 | ||||||||||||
Portfolio turnover rate(g) | 3 | %(e) | 11 | % | 5 | % | 4 | % | 5 | % | 4 | % |
(a) | Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. |
(b) | Based on average shares outstanding. |
(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) | Not annualized. |
(f) | Annualized. |
(g) | 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 | 23 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI United Kingdom Small-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | |||||||||||||||||||
Net asset value, beginning of period | $ | 35.95 | $ | 42.65 | $ | 39.92 | $ | 35.91 | $ | 40.91 | $ | 40.82 | ||||||||||||
Net investment income(a) | 0.48 | 1.05 | 1.15 | 0.92 | 1.02 | 1.07 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 1.86 | (6.69 | ) | 2.93 | 4.12 | (4.89 | ) | 0.40 | ||||||||||||||||
Net increase (decrease) from investment operations | 2.34 | (5.64 | ) | 4.08 | 5.04 | (3.87 | ) | 1.47 | ||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (0.60 | ) | (1.06 | ) | (1.35 | ) | (1.03 | ) | (1.13 | ) | (1.38 | ) | ||||||||||||
Total distributions | (0.60 | ) | (1.06 | ) | (1.35 | ) | (1.03 | ) | (1.13 | ) | (1.38 | ) | ||||||||||||
Net asset value, end of period | $ | 37.69 | $ | 35.95 | $ | 42.65 | $ | 39.92 | $ | 35.91 | $ | 40.91 | ||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 6.29 | %(d) | (13.17 | )% | 10.22 | % | 14.40 | % | (9.66 | )% | 3.84 | % | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(e) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Net investment income | 2.36 | %(e) | 2.76 | % | 2.68 | % | 2.50 | % | 2.72 | % | 2.71 | % | ||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 120,613 | $ | 61,109 | $ | 57,571 | $ | 31,935 | $ | 25,135 | $ | 16,365 | ||||||||||||
Portfolio turnover rate(f) | 12 | %(d) | 20 | % | 20 | % | 19 | % | 21 | % | 17 | % |
(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) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements
24 | 2 0 2 0 i S h a r e s S e m i - A n 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”):
Diversification | ||
iShares ETF | Classification | |
Currency Hedged MSCI United Kingdom | Diversified | |
MSCI United Kingdom | Non-diversified | |
MSCI United Kingdom Small-Cap | Diversified |
Currently the iShares Currency Hedged MSCI United Kingdom ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI United Kingdom ETF (an “underlying fund”). The financial statements and schedule of investments for the underlying fund are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI United Kingdom ETF.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign CurrencyTranslation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the currency hedged fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. Th Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 25 |
Notes to Financial Statements (unaudited) (continued)
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
● | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
● | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
● | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
● | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
● | Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 valu hierarchy consisting of three broad levels for financial reporting purposes as follows:
● | Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities; |
● | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
● | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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
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Notes to Financial Statements (unaudited) (continued)
securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock FundAdvisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received(a) | Non-Cash Collateral Received | Net Amount | ||||||||||||
MSCI United Kingdom Small-Cap | ||||||||||||||||
Barclays Capital Inc | $ | 64,114 | $ | 64,114 | $ | — | $ | — | ||||||||
BofA Securities, Inc. | 2,967 | 2,967 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 85,279 | 85,279 | — | — | ||||||||||||
Credit Suisse AG Dublin Branch | 35,873 | 35,873 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 298,485 | 298,485 | — | — | ||||||||||||
HSBC Bank PLC | 3,282 | 3,282 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 829,738 | 829,738 | — | — | ||||||||||||
UBS AG | 131,484 | 131,484 | — | — | ||||||||||||
$ | 1,451,222 | $ | 1,451,222 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
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Notes to Financial Statements (unaudited) (continued)
Forward Foreign Currency Exchange Contracts: The currency-hedged fund uses forward foreign currency exchange contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the fund.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.
6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFAis entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
Currency Hedged MSCI United Kingdom | 0.62 | % | ||
MSCI United Kingdom Small-Cap | 0.59 |
For its investment advisory services to the iShares MSCI United Kingdom ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $7 billion | 0.59 | % | ||
Over $7 billion, up to and including $11 billion | 0.54 | |||
Over $11 billion, up to and including $24 billion | 0.49 | |||
Over $24 billion, up to and including $48 billion | 0.44 | |||
Over $48 billion, up to and including $72 billion | 0.40 | |||
Over $72 billion, up to and including $96 billion | 0.36 | |||
Over $96 billion | 0.32 |
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses.
For the iShares Currency Hedged MSCI United Kingdom ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment
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Notes to Financial Statements (unaudited) (continued)
in the iShares MSCI United Kingdom ETF (“EWU”), after taking into account any fee waivers by EWU, plus 0.03%. BFA has also contractually agreed to an additional reduction in its investment advisory fee of 0.03% through December 31, 2020.
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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 85% 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 statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
Fees Paid | ||||
iShares ETF | to BTC | |||
MSCI United Kingdom | $ | 2,497 | ||
MSCI United Kingdom Small-Cap | 6,606 |
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 February 29, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
Net Realized | ||||||||||||
iShares ETF | Purchases | Sales | Gain (Loss) | |||||||||
MSCI United Kingdom | $ | 12,911,513 | $ | 2,206,918 | $ | (1,517,968 | ) | |||||
MSCI United Kingdom Small-Cap | 1,260,633 | 797,546 | 316,283 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. PURCHASES AND SALES
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Currency Hedged MSCI United Kingdom. | $ | 2,619,185 | $ | 5,200,089 | ||||
MSCI United Kingdom | 61,929,805 | 58,676,183 | ||||||
MSCI United Kingdom Small-Cap | 12,409,432 | 11,212,586 |
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)
For the six months ended February 29, 2020, in-kind transactions were as follows:
In-kind | In-kind | |||||||
iShares ETF | Purchases | Sales | ||||||
Currency Hedged MSCI United Kingdom | $ | 31,041,272 | $ | 2,413,576 | ||||
MSCI United Kingdom | 498,207,556 | 40,784,618 | ||||||
MSCI United Kingdom Small-Cap | 65,156,087 | 2,114,529 |
8. INCOME TAX INFORMATION
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
Currency Hedged MSCI United Kingdom | $ | 4,517,637 | ||
MSCI United Kingdom | 218,802,277 | |||
MSCI United Kingdom Small-Cap | 1,281,221 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Currency Hedged MSCI United Kingdom | $ | 63,222,947 | $ | 1,920,174 | $ | (4,798,683 | ) | $ | (2,878,509 | ) | ||||||
MSCI United Kingdom | 3,089,557,268 | 75,670,412 | (881,195,359 | ) | (805,524,947 | ) | ||||||||||
MSCI United Kingdom Small-Cap | 136,539,062 | 3,820,832 | (18,435,486 | ) | (14,614,654 | ) |
9. PRINCIPAL RISKS
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.
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Notes to Financial Statements (unaudited) (continued)
Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended | Year Ended | |||||||||||||
02/29/20 | 08/31/19 | |||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||
Currency Hedged MSCI United Kingdom | ||||||||||||||
Shares sold | 1,300,000 | $ | 30,823,807 | 1,100,000 | $ | 25,247,824 | ||||||||
Shares redeemed | (100,000 | ) | (2,374,828 | ) | (550,000 | ) | (12,822,736 | ) | ||||||
Net increase | 1,200,000 | $ | 28,448,979 | 550,000 | $ | 12,425,088 | ||||||||
MSCI United Kingdom | ||||||||||||||
Shares sold | 15,400,000 | $ | 501,296,354 | 17,200,000 | $ | 552,815,601 | ||||||||
Shares redeemed | (1,300,000 | ) | (41,169,802 | ) | (10,200,000 | ) | (327,775,604 | ) | ||||||
Net increase | 14,100,000 | $ | 460,126,552 | 7,000,000 | $ | 225,039,997 | ||||||||
MSCI United Kingdom Small-Cap | ||||||||||||||
Shares sold | 1,550,000 | $ | 65,817,356 | 450,000 | $ | 16,605,156 | ||||||||
Shares redeemed | (50,000 | ) | (2,126,872 | ) | (100,000 | ) | (3,816,927 | ) | ||||||
Net increase | 1,500,000 | $ | 63,690,484 | 350,000 | $ | 12,788,229 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust,
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)
BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
12. SUBSEQUENT EVENTS
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following item was noted:
On March 31, 2020, several large banks located in the United Kingdom (UK) announced cancellation of payments of their outstanding dividends and suspension of dividends until the end of 2020 based on a recommendation from the primary UK banking regulator. As a result, in early April, the iShares MSCI United Kingdom ETF reversed approximately $6 million of income recorded in these financial statements.
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Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares Currency Hedged MSCI United Kingdom ETF, iShares MSCI United Kingdom ETF and iShares MSCI United Kingdom Small-Cap ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classification. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
S t a t e m e n t r e g a r d i n g l i q u i d i t y r i s k m a n a g e m e n t p r o g r a m | 33 |
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.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
Currency Hedged MSCI United Kingdom(a) | $ | 0.388105 | $ | — | $ | 0.033079 | $ | 0.421184 | 92 | % | — | % | 8 | % | 100 | % | ||||||||||||||||
MSCI United Kingdom(a) | 0.552622 | — | 0.046150 | 0.598772 | 92 | — | 8 | 100 | ||||||||||||||||||||||||
MSCI United Kingdom Small-Cap(a) | 0.484858 | — | 0.117764 | 0.602622 | 80 | — | 20 | 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. |
34 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
G e n e r a l i n f o r m a t i o n | 35 |
Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity
NVS | Non-Voting Shares |
Counterparty Abbreviations
MS | Morgan Stanley & Co. International PLC |
Currency Abbreviations
GBP | British Pound |
USD | United States Dollar |
36 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-813-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report (Unaudited) |
iShares Trust
● | iShares ESG MSCI EAFE ETF | ESGD | NASDAQ |
● | iShares ESG MSCI EM Leaders ETF | LDEM | NASDAQ |
● | iShares ESG MSCI USA ETF | ESGU | NASDAQ |
● | iShares ESG MSCI USA Leaders ETF | SUSL | NASDAQ |
● | iShares ESG MSCI USA Small-Cap ETF | ESML | Cboe BZX |
● | iShares MSCI Global Impact ETF | SDG | NASDAQ |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® ESG MSCI EAFE ETF |
Investment Objective
The iShares ESG MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada that have positive environmental, social and governance characteristics, as represented by the MSCI EAFE Extended ESG Focus Index (the "Index")The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | (0.19 | )% | 0.82 | % | 7.57 | % | 0.82 | % | 30.75 | % | |||||||||||
Fund Market | 0.40 | 1.53 | 7.79 | 1.53 | 31.71 | ||||||||||||||||
Index | (0.09 | ) | 0.87 | 7.71 | 0.87 | 31.34 |
The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.
Index performance through May 31, 2018 reflects the performance of the MSCI EAFE ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI EAFE Extended ESG Focus Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
|
| Ending Account Value |
|
| Expenses Paid During |
|
| Beginning Account Value |
| Ending Account Value |
|
| Expenses Paid During |
|
| Annualized Expense |
| ||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 998.10 | $ | 0.99 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.01 | 0.20 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST GEOGRAPHIC ALLOCATION | |||||
Percent of | Percent of | |||||
Sector | Total Investments | (a) | Country/Geographic Region | Total Investments | (a) | |
Financials | 18.6 | % | Japan | 24.2 | % | |
Industrials | 15.8 | United Kingdom | 15.3 | |||
Health Care | 12.0 | France | 11.5 | |||
Consumer Staples | 11.0 | Switzerland | 9.7 | |||
Consumer Discretionary | 10.7 | Germany | 8.5 | |||
Information Technology | 7.5 | Australia | 7.0 | |||
Materials | 7.1 | Netherlands | 4.0 | |||
Communication Services | 5.2 | Hong Kong | 3.4 | |||
Energy | 4.5 | Spain | 3.0 | |||
Utilities | 3.8 | Sweden | 2.8 | |||
Real Estate | 3.8 | |||||
(a) Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® ESG MSCI EM Leaders ETF |
Investment Objective
The iShares ESG MSCI EM Leaders ETF (the "Fund") seeks to track the investment results of an index composed of emerging market large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers as represented by the MSCI EM Extended ESG Leaders 5% Issuer Capped Net 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
Cumulative Total Returns | |||
Since | |||
Inception | |||
Fund NAV | (8.21 | )% | |
Fund Market | (6.61 | ) | |
Index | (8.24 | ) |
The inception date of the Fund was 2/5/20. The first day of secondary market trading was 2/7/20.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
|
| Ending Account Value |
|
| Expenses Paid During |
|
| Beginning Account Value |
| Ending Account Value |
|
| Expenses Paid During |
|
| Annualized Expense |
| ||||||||
(02/05/20) | (a) | (02/29/20) | the Period | (b) | (09/01/19) | (02/29/20) | the Period | (b) | Ratio | ||||||||||||||||||
$ | 1,000.00 | $ | 917.90 | $ | 0.10 | $ | 1,000.00 | $ | 1,024.10 | $ | 0.81 | 0.16 | % |
(a) | The beginning of the period (commencement of operations) is February 05, 2020. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (24 days for actual and 182 days for hypothetical expenses) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST GEOGRAPHIC ALLOCATION | |||||
Percent of | Percent of | |||||
Sector | Total Investments | (a) | Country/Geographic Region | Total Investments | (a) | |
Financials | 27.9 | % | China | 26.3 | % | |
Consumer Discretionary | 13.8 | Taiwan | 15.2 | |||
Information Technology | 13.1 | India | 13.2 | |||
Communication Services | 9.4 | South Africa | 8.7 | |||
Consumer Staples | 7.0 | Brazil | 7.7 | |||
Materials | 6.7 | South Korea | 5.9 | |||
Energy | 6.6 | Thailand | 3.7 | |||
Industrials | 6.1 | Malaysia | 3.2 | |||
Health Care | 3.8 | Indonesia | 3.2 | |||
Utilities | 3.1 | Russia | 2.6 | |||
Real Estate | 2.5 | |||||
(a) Excludes money market funds. |
4 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® ESG MSCI USA ETF |
Investment Objective
The iShares ESG MSCI USA ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA Extended ESG Focus Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | 3.12 | % | 9.36 | % | 12.16 | % | 9.36 | % | 45.16 | % | |||||||||||
Fund Market | 3.29 | 9.43 | 12.21 | 9.43 | 45.37 | ||||||||||||||||
Index | 3.27 | 9.60 | 12.40 | 9.60 | 46.15 |
The inception date of the Fund was 12/1/16. The first day of secondary market trading was 12/2/16.
Index performance through May 31, 2018 reflects the performance of the MSCI USA ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI USA Extended ESG Focus Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
|
| Ending Account Value |
|
| Expenses Paid During |
|
| Beginning Account Value |
| Ending Account Value |
|
| Expenses Paid During |
|
| Annualized Expense |
| ||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 1,031.20 | $ | 0.76 | $ | 1,000.00 | $ | 1,024.10 | $ | 0.75 | 0.15 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||||
Percent of | Percent of | |||||
Sector | Total Investments | (a) | Security | Total Investments | (a) | |
Information Technology | 25.2 | % | Microsoft Corp | 5.2 | % | |
Health Care | 14.0 | Apple Inc. | 4.7 | |||
Financials | 11.0 | Amazon. com Inc. | 2.9 | |||
Industrials | 10.3 | Alphabet Inc., Class C | 1.9 | |||
Communication Services | 9.8 | Facebook Inc., Class A | 1.7 | |||
Consumer Discretionary | 9.1 | Alphabet Inc., Class A | 1.4 | |||
Consumer Staples | 7.2 | NextEra Energy Inc. | 1.4 | |||
Utilities | 3.5 | Johnson & Johnson | 1.4 | |||
Real Estate | 3.5 | Procter & Gamble Co. (The) | 1.2 | |||
Energy | 3.5 | Visa Inc., Class A | 1.2 | |||
Materials | 2.9 | |||||
(a) Excludes money market funds. |
F u n d S u m m a r y | 5 |
Fund Summary as of February 29, 2020 | iShares® ESG MSCI USA Leaders ETF |
Investment Objective
The iShares ESG MSCI USA Leaders ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers, as represented by the MSCI USA Extended ESG Leaders 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
Cumulative Total Returns | ||||
Since | ||||
6 Months | Inception | |||
Fund NAV | 2.97 | % | 6.45 | % |
Fund Market | 3.15 | 6.61 | ||
Index | 3.02 | 6.54 |
The inception date of the Fund was 5/7/19. The first day of secondary market trading was 5/9/19.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
|
| Ending Account Value |
|
| Expenses Paid During |
|
| Beginning Account Value |
| Ending Account Value |
|
| Expenses Paid During |
|
| Annualized Expense |
| ||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 1,029.70 | $ | 0.50 | $ | 1,000.00 | $ | 1,024.10 | $ | 0.50 | 0.10 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||||
Percent of | Percent of | |||||
Sector | Total Investments | (a) | Security | Total Investments | (a) | |
Information Technology | 25.1 | % | Microsoft Corp. | 9.1 | % | |
Health Care | 14.0 | Alphabet Inc., Class C | 3.2 | |||
Financials | 11.5 | Alphabet Inc., Class A | 3.1 | |||
Consumer Discretionary | 10.4 | Johnson & Johnson | 2.7 | |||
Communication Services | 10.4 | Visa Inc., Class A | 2.4 | |||
Industrials | 8.8 | Procter & Gamble Co. (The) | 2.2 | |||
Consumer Staples | 7.2 | Mastercard Inc., Class A | 2.0 | |||
Utilities | 3.4 | Intel Corp | 1.9 | |||
Real Estate | 3.3 | Home Depot Inc. (The) | 1.8 | |||
Energy | 3.2 | Verizon Communications Inc. | 1.7 | |||
Materials | 2.7 | |||||
(a) Excludes money market funds. |
6 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Fund Summary as of February 29, 2020 | iShares® ESG MSCI USA Small-Cap ETF |
Investment Objective
The iShares ESG MSCI USA Small-Cap ETF (the “Fund”) seeks to track the investment results of an optimized index designed to produce investment results comparable to a capitalization weighted index of small-capitalization U.S. companies, while reflecting a higher allocation to those companies with favorable environmental, social and governance (“ESG”) profiles, as represented by the MSCI USA Small Cap Extended ESG Focus Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. 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 | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | (1.91 | )% | (3.03 | )% | 1.30 | % | (3.03 | )% | 2.46 | % | |||||||||||
Fund Market | (1.75 | ) | (2.99 | ) | 1.42 | (2.99 | ) | 2.70 | |||||||||||||
Index | (1.82 | ) | (3.01 | ) | 1.41 | (3.01 | ) | 2.67 |
The inception date of the Fund was 4/10/18. The first day of secondary market trading was 4/12/18.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
|
| Ending Account Value |
|
| Expenses Paid During |
|
| Beginning Account Value |
| Ending Account Value |
|
| Expenses Paid During |
|
| Annualized Expense |
| ||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 980.90 | $ | 0.84 | $ | 1,000.00 | $ | 1,024.00 | $ | 0.86 | 0.17 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST HOLDINGS | |||||
Percent of | Percent of | |||||
Sector | Total Investments | (a) | Security | Total Investments | (a) | |
Industrials | 17.6 | % | Douglas Emmett Inc. . | 0.7 | % | |
Information Technology | 16.7 | Bright Horizons Family Solutions Inc. | 0.7 | |||
Health Care | 14.4 | Kilroy Realty Corp. . | 0.5 | |||
Financials | 13.6 | Easterly Government Properties Inc. | 0.5 | |||
Consumer Discretionary | 12.4 | Fair Isaac Corp. | 0.5 | |||
Real Estate | 10.1 | Bank of Hawaii Corp. . | 0.4 | |||
Materials . | 3.8 | Cullen/Frost Bankers Inc. . | 0.4 | |||
Utilities . | 3.4 | Hawaiian Electric Industries Inc. | 0.4 | |||
Consumer Staples . . | 2.9 | Quanta Services Inc. . | 0.4 | |||
Communication Services. . | 2.6 | Pool Corp. . | 0.4 | |||
Energy . | 2.5 | |||||
(a) Excludes money market funds. |
F u n d s u m m a r y | 7 |
Fund Summary as of February 29, 2020 | iShares® MSCI Global Impact ETF |
Investment Objective
The iShares MSCI Global Impact ETF (the "Fund") seeks to track the investment results of an index composed of positive impact companies that derive a majority of their revenue from products and services that address at least one of the world's major social and environmental challenges as identified by the United Nations Sustainable Development Goals, as represented by the MSCI ACWI Sustainable Impact Index (the "Index"). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | ||||||||||||||||||||
Since | Since | ||||||||||||||||||||
6 Months | 1 Year | Inception | 1 Year | Inception | |||||||||||||||||
Fund NAV | 11.83 | % | 11.44 | % | 9.27 | % | 11.44 | % | 40.85 | % | |||||||||||
Fund Market | 12.31 | 11.86 | 9.53 | 11.86 | 42.14 | ||||||||||||||||
Index | 11.89 | 11.38 | 9.50 | 11.38 | 41.98 |
The inception date of the Fund was 4/20/16. The first day of secondary market trading was 4/22/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
| Beginning Account Value |
|
| Ending Account Value |
|
| Expenses Paid During |
|
| Beginning Account Value |
| Ending Account Value |
|
| Expenses Paid During |
|
| Annualized Expense |
| ||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 1,118.30 | $ | 2.58 | $ | 1,000.00 | $ | 1,022.40 | $ | 2.46 | 0.49 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | TEN LARGEST GEOGRAPHIC ALLOCATION | |||||
Percent of | Percent of | |||||
Sector | Total Investments | (a) | Country/Geographic Region | Total Investments | (a) | |
Health Care | 20.6 | % | United States | 31.7 | % | |
Industrials | 20.1 | Japan | 13.2 | |||
Consumer Staples | 20.1 | United Kingdom | 9.7 | |||
Materials | 11.2 | China | 8.4 | |||
Consumer Discretionary | 10.6 | France | 7.6 | |||
Real Estate | 6.3 | Denmark | 5.6 | |||
Utilities | 4.7 | Belgium | 4.1 | |||
Information Technology | 3.6 | Hong Kong | 2.9 | |||
Communication Services | 2.8 | Germany | 2.3 | |||
Financials | 0.0 | Canada | 2.0 | |||
(a) Excludes money market funds. |
8 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Past performance is no guarantee of future results. 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
A b o u t F u n d P e r f o r m a n c e / S h a r e h o l d e r E x p e n s e s | 9 |
Schedule of Investments (unaudited) | iShares® ESG MSCI EAFE ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Australia — 7.0% | ||||||||
Alumina Ltd. | 1,206,622 | $ | 1,509,261 | |||||
APA Group | 423,163 | 2,930,240 | ||||||
Aristocrat Leisure Ltd. | 105,050 | 2,242,573 | ||||||
ASX Ltd. | 40,499 | 1,935,923 | ||||||
Aurizon Holdings Ltd. | 488,580 | 1,521,508 | ||||||
Australia & New Zealand Banking Group Ltd. | 334,097 | 5,348,606 | ||||||
BlueScope Steel Ltd. | 191,957 | 1,462,894 | ||||||
Brambles Ltd. | 389,305 | 3,002,012 | ||||||
Coca-Cola Amatil Ltd. | 235,804 | 1,746,878 | ||||||
Cochlear Ltd. | 11,761 | 1,574,135 | ||||||
Coles Group Ltd. | 155,420 | 1,423,942 | ||||||
Commonwealth Bank of Australia | 184,590 | 9,732,996 | ||||||
CSL Ltd. | 62,766 | 12,522,533 | ||||||
Dexus | 346,541 | 2,716,937 | ||||||
Fortescue Metals Group Ltd. | 245,434 | 1,595,095 | ||||||
Goodman Group | 174,454 | 1,684,938 | ||||||
GPT Group (The) | 419,107 | 1,561,867 | ||||||
Insurance Australia Group Ltd. | 478,425 | 1,968,003 | ||||||
Lendlease Group | 149,276 | 1,696,811 | ||||||
Macquarie Group Ltd. | 59,150 | 5,142,006 | ||||||
Mirvac Group | 1,481,919 | 2,904,620 | ||||||
National Australia Bank Ltd. | 285,752 | 4,624,388 | ||||||
Newcrest Mining Ltd. | 102,440 | 1,737,067 | ||||||
Ramsay Health Care Ltd. | 47,543 | 2,084,734 | ||||||
Rio Tinto Ltd. | 60,954 | 3,429,718 | ||||||
Seek Ltd. | 111,402 | 1,485,371 | ||||||
Sonic Healthcare Ltd. | 83,644 | 1,553,168 | ||||||
Stockland | 885,169 | 2,688,056 | ||||||
Sydney Airport | 489,566 | 2,452,582 | ||||||
Tabcorp Holdings Ltd. | 572,960 | 1,400,086 | ||||||
Transurban Group | 722,771 | 6,920,197 | ||||||
Wesfarmers Ltd. | 58,454 | 1,532,026 | ||||||
Westpac Banking Corp. | 444,380 | 6,773,190 | ||||||
Woodside Petroleum Ltd. | 211,894 | 3,814,392 | ||||||
Woolworths Group Ltd. | 66,533 | 1,664,409 | ||||||
Worley Ltd. | 235,712 | 1,902,731 | ||||||
110,285,893 | ||||||||
Austria — 0.3% | ||||||||
Erste Group Bank AG | 45,396 | 1,547,318 | ||||||
OMV AG | 81,394 | 3,384,063 | ||||||
4,931,381 | ||||||||
Belgium — 0.9% | ||||||||
Anheuser-Busch InBev SA/NV | 100,107 | 5,578,398 | ||||||
KBC Group NV | 61,797 | 4,074,211 | ||||||
Solvay SA | 17,047 | 1,536,970 | ||||||
UCB SA | 19,699 | 1,808,101 | ||||||
Umicore SA(a) | 46,192 | 1,916,434 | ||||||
14,914,114 | ||||||||
Denmark — 2.3% | ||||||||
AP Moller - Maersk A/S, Class A | 1,534 | 1,441,969 | ||||||
Carlsberg A/S, Class B | 14,804 | 1,931,463 | ||||||
Chr Hansen Holding A/S | 22,391 | 1,582,771 | ||||||
Coloplast A/S, Class B | 20,516 | 2,728,571 | ||||||
DSV Panalpina A/S | 16,117 | 1,615,218 | ||||||
Genmab A/S(b) | 7,541 | 1,687,072 | ||||||
Novo Nordisk A/S, Class B | 254,020 | 14,778,612 | ||||||
Novozymes A/S, Class B | 37,372 | 1,884,764 | ||||||
Orsted A/S(c) | 37,661 | 3,849,608 |
Security | Shares | Value | ||||||
Denmark (continued) | ||||||||
Pandora A/S | 35,764 | $ | 1,596,544 | |||||
Vestas Wind Systems A/S | 26,557 | 2,535,019 | ||||||
35,631,611 | ||||||||
Finland — 1.0% | ||||||||
Metso OYJ | 50,243 | 1,612,634 | ||||||
Neste OYJ | 77,459 | 3,034,124 | ||||||
Nokia OYJ | 921,023 | 3,485,298 | ||||||
Nordea Bank Abp | 201,785 | 1,575,135 | ||||||
UPM-Kymmene OYJ | 115,681 | 3,523,644 | ||||||
Wartsila OYJ Abp | 202,819 | 2,095,084 | ||||||
15,325,919 | ||||||||
France — 11.5% | ||||||||
Accor SA | 40,931 | 1,468,864 | ||||||
Air Liquide SA | 25,784 | 3,480,826 | ||||||
Airbus SE | 55,472 | 6,586,879 | ||||||
Alstom SA | 33,269 | 1,625,857 | ||||||
Atos SE | 28,951 | 2,140,222 | ||||||
AXA SA | 338,576 | 7,793,347 | ||||||
BNP Paribas SA | 109,001 | 5,242,470 | ||||||
Bouygues SA | 42,093 | 1,640,490 | ||||||
Capgemini SE | 22,938 | 2,499,971 | ||||||
Carrefour SA | 111,044 | 1,908,318 | ||||||
Cie. de Saint-Gobain | 70,280 | 2,439,490 | ||||||
Cie. Generale des Etablissements Michelin SCA | 25,934 | 2,741,607 | ||||||
CNP Assurances | 147,475 | 2,292,213 | ||||||
Credit Agricole SA | 124,156 | 1,474,258 | ||||||
Danone SA | 116,848 | 8,178,567 | ||||||
Dassault Systemes SE | 22,170 | 3,458,073 | ||||||
Edenred | 32,391 | 1,678,303 | ||||||
Electricite de France SA | 137,139 | 1,896,561 | ||||||
Engie SA | 183,400 | 3,027,879 | ||||||
EssilorLuxottica SA | 27,728 | 3,749,357 | ||||||
Gecina SA | 10,198 | 1,800,160 | ||||||
Getlink SE | 103,433 | 1,656,520 | ||||||
Ingenico Group SA | 11,544 | 1,622,470 | ||||||
JCDecaux SA | 79,645 | 1,819,709 | ||||||
Kering SA | 9,912 | 5,507,066 | ||||||
Legrand SA. | 42,568 | 3,227,293 | ||||||
L'Oreal SA | 43,469 | 11,507,390 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 29,711 | 12,103,074 | ||||||
Natixis SA | 398,547 | 1,605,353 | ||||||
Orange SA | 303,553 | 4,064,605 | ||||||
Pernod Ricard SA | 30,289 | 4,870,866 | ||||||
Peugeot SA. | 98,151 | 1,887,283 | ||||||
Renault SA | 52,355 | 1,523,710 | ||||||
Safran SA | 34,156 | 4,656,064 | ||||||
Sanofi | 136,810 | 12,612,908 | ||||||
Schneider Electric SE | 97,261 | 9,668,686 | ||||||
Societe Generale SA | 83,520 | 2,347,691 | ||||||
STMicroelectronics NV | 96,391 | 2,584,547 | ||||||
Teleperformance | 14,377 | 3,471,172 | ||||||
Thales SA | 17,633 | 1,758,702 | ||||||
TOTAL SA | 336,263 | 14,176,343 | ||||||
Unibail-Rodamco-Westfield | 34,978 | 4,187,951 | ||||||
Valeo SA | 73,694 | 1,844,022 | ||||||
Vinci SA | 28,122 | 2,810,427 | ||||||
Vivendi SA | 76,349 | 1,930,585 | ||||||
Worldline SA(b)(c) | 21,262 | 1,608,008 | ||||||
182,176,157 |
10 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EAFE ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Germany — 8.1% | ||||||||
adidas AG | 25,127 | $ | 6,915,366 | |||||
Allianz SE, Registered | 69,851 | 14,946,577 | ||||||
BASF SE | 123,750 | 7,215,331 | ||||||
Bayerische Motoren Werke AG | 44,485 | 2,879,587 | ||||||
Beiersdorf AG | 15,734 | 1,640,157 | ||||||
Brenntag AG | 40,799 | 1,811,000 | ||||||
Continental AG | 14,657 | 1,636,080 | ||||||
Daimler AG, Registered | 90,972 | 3,751,303 | ||||||
Delivery Hero SE(b)(c) | 20,508 | 1,531,836 | ||||||
Deutsche Bank AG, Registered | 195,305 | 1,690,303 | ||||||
Deutsche Boerse AG | 42,385 | 6,613,534 | ||||||
Deutsche Post AG, Registered | 137,970 | 4,110,120 | ||||||
Deutsche Telekom AG, Registered | 145,149 | 2,352,680 | ||||||
Deutsche Wohnen SE | 55,364 | 2,217,299 | ||||||
E.ON SE | 373,138 | 4,274,979 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 23,399 | 1,463,507 | ||||||
Fresenius Medical Care AG & Co. KGaA | 21,912 | 1,668,479 | ||||||
HeidelbergCement AG | 32,875 | 1,944,245 | ||||||
Henkel AG & Co. KGaA | 26,771 | 2,259,897 | ||||||
Infineon Technologies AG | 200,156 | 4,132,073 | ||||||
Merck KGaA | 41,883 | 5,016,994 | ||||||
MTU Aero Engines AG | 9,003 | 2,182,578 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered | 17,443 | 4,420,271 | ||||||
Puma SE | 25,323 | 1,924,870 | ||||||
QIAGEN NV(b) | 46,584 | 1,698,850 | ||||||
SAP SE | 143,338 | 17,565,075 | ||||||
Siemens AG, Registered | 134,889 | 13,809,330 | ||||||
Telefonica Deutschland Holding AG | 618,792 | 1,604,800 | ||||||
thyssenkrupp AG(b) | 158,062 | 1,510,869 | ||||||
Vonovia SE | 40,813 | 2,177,891 | ||||||
Wirecard AG | 12,670 | 1,599,800 | ||||||
128,565,681 | ||||||||
Hong Kong — 3.4% | ||||||||
AIA Group Ltd. | 1,411,800 | 13,931,313 | ||||||
BOC Hong Kong Holdings Ltd. | 1,523,500 | 5,229,483 | ||||||
Hang Seng Bank Ltd. | 250,800 | 5,229,660 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 211,100 | 6,929,172 | ||||||
Link REIT | 181,200 | 1,678,757 | ||||||
Melco Resorts & Entertainment Ltd., ADR | 82,092 | 1,423,475 | ||||||
MTR Corp. Ltd. | 1,074,000 | 6,043,192 | ||||||
Sands China Ltd. | 754,800 | 3,511,013 | ||||||
Sun Hung Kai Properties Ltd. | 176,000 | 2,502,332 | ||||||
Swire Pacific Ltd., Class A | 402,000 | 3,621,227 | ||||||
Swire Properties Ltd. | 1,355,400 | 4,008,953 | ||||||
54,108,577 | ||||||||
Ireland — 0.7% | ||||||||
CRH PLC(b) | 148,533 | 4,971,364 | ||||||
Flutter Entertainment PLC | 15,593 | 1,643,957 | ||||||
Kerry Group PLC, Class A | 22,404 | 2,830,112 | ||||||
Kingspan Group PLC | 26,452 | 1,657,656 | ||||||
11,103,089 | ||||||||
Israel — 0.5% | ||||||||
Bank Hapoalim BM | 406,949 | 3,178,524 | ||||||
Bank Leumi Le-Israel BM | 250,187 | 1,623,772 | ||||||
Teva Pharmaceutical Industries Ltd., ADR(a)(b) | 142,328 | 1,641,042 | ||||||
Wix.com Ltd.(a)(b) | 13,721 | 1,839,026 | ||||||
8,282,364 |
Security | Shares | Value | ||||||
Italy — 2.0% | ||||||||
Assicurazioni Generali SpA | 183,663 | $ | 3,280,367 | |||||
CNH Industrial NV | 322,287 | 2,956,034 | ||||||
Eni SpA | 357,819 | 4,385,609 | ||||||
Ferrari NV | 9,822 | 1,527,179 | ||||||
Intesa Sanpaolo SpA | 5,071,860 | 12,248,246 | ||||||
Snam SpA | 358,372 | 1,760,025 | ||||||
Terna Rete Elettrica Nazionale SpA | 559,532 | 3,681,560 | ||||||
UniCredit SpA | 176,148 | 2,232,484 | ||||||
32,071,504 | ||||||||
Japan — 24.1% | ||||||||
Advantest Corp | 34,700 | 1,581,148 | ||||||
Aeon Co. Ltd. | 160,300 | 2,993,783 | ||||||
Ajinomoto Co. Inc. | 98,300 | 1,651,320 | ||||||
Alfresa Holdings Corp | 87,900 | 1,545,065 | ||||||
Asahi Kasei Corp | 332,800 | 2,778,964 | ||||||
Astellas Pharma Inc. | 325,300 | 5,123,856 | ||||||
Benesse Holdings Inc. | 64,100 | 1,653,235 | ||||||
Bridgestone Corp. | 67,000 | 2,239,855 | ||||||
Canon Inc. | 88,800 | 2,250,357 | ||||||
Central Japan Railway Co. | 11,100 | 1,829,676 | ||||||
Chugai Pharmaceutical Co. Ltd. | 40,700 | 4,420,345 | ||||||
Dai Nippon Printing Co. Ltd. | 66,900 | 1,609,470 | ||||||
Daifuku Co. Ltd. | 28,300 | 1,684,383 | ||||||
Dai-ichi Life Holdings Inc. | 117,100 | 1,605,084 | ||||||
Daiichi Sankyo Co. Ltd. | 78,100 | 4,771,511 | ||||||
Daikin Industries Ltd. | 37,100 | 5,064,641 | ||||||
Daiwa House Industry Co. Ltd. | 110,800 | 3,060,572 | ||||||
Denso Corp. | 105,900 | 4,143,123 | ||||||
East Japan Railway Co. | 56,700 | 4,372,941 | ||||||
Eisai Co. Ltd. | 43,200 | 3,196,396 | ||||||
Fast Retailing Co. Ltd. | 7,300 | 3,616,669 | ||||||
FUJIFILM Holdings Corp. | 36,000 | 1,761,202 | ||||||
Fujitsu Ltd. | 38,500 | 4,001,159 | ||||||
Hankyu Hanshin Holdings Inc. | 87,800 | 2,889,631 | ||||||
Hitachi Ltd. | 93,700 | 3,159,383 | ||||||
Hitachi Metals Ltd. | 115,600 | 1,653,649 | ||||||
Honda Motor Co. Ltd. | 310,300 | 8,053,445 | ||||||
Hoya Corp. | 43,000 | 3,830,594 | ||||||
Idemitsu Kosan Co. Ltd. | 67,500 | 1,663,329 | ||||||
Inpex Corp. | 297,700 | 2,574,740 | ||||||
ITOCHU Corp. | 167,500 | 3,822,382 | ||||||
JFE Holdings Inc. | 164,200 | 1,525,318 | ||||||
JXTG Holdings Inc. | 702,900 | 2,828,152 | ||||||
Kajima Corp. | 148,500 | 1,601,126 | ||||||
Kansai Paint Co. Ltd. | 77,400 | 1,691,297 | ||||||
Kao Corp. | 65,600 | 4,785,063 | ||||||
Kawasaki Heavy Industries Ltd. | 86,600 | 1,573,597 | ||||||
KDDI Corp. | 265,000 | 7,512,817 | ||||||
Keio Corp. | 34,100 | 1,640,745 | ||||||
Keyence Corp. | 20,600 | 6,571,603 | ||||||
Kikkoman Corp. | 33,200 | 1,542,039 | ||||||
Kirin Holdings Co. Ltd. | 123,800 | 2,381,542 | ||||||
Komatsu Ltd. | 183,200 | 3,706,800 | ||||||
Kubota Corp. | 177,400 | 2,504,800 | ||||||
Kyocera Corp. | 26,100 | 1,644,422 | ||||||
Kyowa Kirin Co. Ltd. | 69,800 | 1,663,060 | ||||||
Kyushu Railway Co. | 64,000 | 1,925,370 | ||||||
Lawson Inc. | 31,100 | 1,652,093 | ||||||
Mazda Motor Corp. | 217,800 | 1,514,393 | ||||||
Mitsubishi Chemical Holdings Corp. | 271,500 | 1,828,123 |
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) | iShares® ESG MSCI EAFE ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Mitsubishi Corp. | 149,300 | $ | 3,723,330 | |||||
Mitsubishi Electric Corp. | 172,200 | 2,188,719 | ||||||
Mitsubishi Estate Co. Ltd. | 153,800 | 2,629,279 | ||||||
Mitsubishi Heavy Industries Ltd. | 62,500 | 1,981,064 | ||||||
Mitsubishi UFJ Financial Group Inc. | 1,086,200 | 5,356,230 | ||||||
Mitsui Fudosan Co. Ltd. | 102,300 | 2,349,680 | ||||||
Mizuho Financial Group Inc. | 3,799,400 | 5,199,012 | ||||||
MS&AD Insurance Group Holdings Inc. | 101,900 | 3,290,388 | ||||||
Murata Manufacturing Co. Ltd. | 83,500 | 4,428,716 | ||||||
Nabtesco Corp. | 59,100 | 1,595,505 | ||||||
NEC Corp. | 40,300 | 1,509,405 | ||||||
NGK Insulators Ltd. | 128,300 | 2,018,496 | ||||||
Nikon Corp. | 160,300 | 1,648,104 | ||||||
Nintendo Co. Ltd. | 15,908 | 5,349,123 | ||||||
Nippon Express Co. Ltd. | 32,800 | 1,572,113 | ||||||
Nippon Steel Corp. | 136,900 | 1,543,322 | ||||||
Nippon Telegraph & Telephone Corp. | 166,000 | 3,892,801 | ||||||
Nippon Yusen KK | 1 13,300 | 1,621,798 | ||||||
Nitto Denko Corp. | 48,200 | 2,421,953 | ||||||
Nomura Holdings Inc. | 395,700 | 1,759,034 | ||||||
Nomura Real Estate Master Fund Inc. | 970 | 1,540,453 | ||||||
Nomura Research Institute Ltd. | 93,000 | 2,030,455 | ||||||
NSK Ltd. | 215,100 | 1,649,170 | ||||||
NTT DOCOMO Inc. | 294,700 | 7,998,278 | ||||||
Obayashi Corp. | 166,500 | 1,680,976 | ||||||
Odakyu Electric Railway Co. Ltd. | 83,000 | 1,603,597 | ||||||
Omron Corp. | 76,400 | 4,136,430 | ||||||
Ono Pharmaceutical Co. Ltd. | 83,900 | 1,718,991 | ||||||
Oriental Land Co. Ltd. | 24,500 | 2,785,820 | ||||||
ORIX Corp. | 239,500 | 3,867,881 | ||||||
Osaka Gas Co. Ltd. | 160,400 | 2,594,892 | ||||||
Otsuka Holdings Co. Ltd. | 50,900 | 1,925,296 | ||||||
Panasonic Corp. | 426,900 | 4,078,436 | ||||||
Rakuten Inc. | 202,700 | 1,696,918 | ||||||
Recruit Holdings Co. Ltd. | 159,500 | 5,556,955 | ||||||
Resona Holdings Inc. | 732,200 | 2,777,697 | ||||||
Santen Pharmaceutical Co. Ltd. | 97,100 | 1,559,145 | ||||||
Secom Co. Ltd. | 30,300 | 2,408,775 | ||||||
Sekisui Chemical Co. Ltd. | 204,000 | 3,043,026 | ||||||
Sekisui House Ltd. | 162,700 | 3,193,213 | ||||||
Seven & i Holdings Co. Ltd. | 47,800 | 1,637,870 | ||||||
Shimadzu Corp. | 66,600 | 1,622,628 | ||||||
Shimizu Corp. | 178,300 | 1,623,238 | ||||||
Shin-Etsu Chemical Co. Ltd. | 32,600 | 3,670,579 | ||||||
Shionogi & Co. Ltd. | 63,700 | 3,451,782 | ||||||
Shiseido Co. Ltd. | 44,100 | 2,623,963 | ||||||
Softbank Corp. | 204,600 | 2,679,252 | ||||||
SoftBank Group Corp. | 190,200 | 8,839,499 | ||||||
Sompo Holdings Inc. | 79,900 | 2,974,815 | ||||||
Sony Corp. | 185,900 | 11,393,732 | ||||||
Stanley Electric Co. Ltd. | 72,700 | 1,776,639 | ||||||
Sumitomo Chemical Co. Ltd. | 1,710,700 | 6,232,838 | ||||||
Sumitomo Metal Mining Co. Ltd. | 75,500 | 1,879,713 | ||||||
Sumitomo Mitsui Financial Group Inc. | 217,100 | 7,012,251 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 103,400 | 3,546,841 | ||||||
Sysmex Corp. | 38,000 | 2,437,510 | ||||||
T&D Holdings Inc. | 157,400 | 1,554,081 | ||||||
Taisei Corp. | 46,800 | 1,603,171 | ||||||
Takeda Pharmaceutical Co. Ltd. | 204,794 | 7,144,485 | ||||||
TDK Corp. | 17,300 | 1,676,030 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Teijin Ltd. | 1 14,200 | $ | 1,879,247 | |||||
Terumo Corp. | 74,200 | 2,392,505 | ||||||
Tokio Marine Holdings Inc. | 81,700 | 4,393,841 | ||||||
Tokyo Electron Ltd. | 18,700 | 3,870,370 | ||||||
Tokyo Gas Co. Ltd. | 157,500 | 3,187,526 | ||||||
Tokyu Corp. | 156,400 | 2,401,135 | ||||||
Toray Industries Inc. | 352,100 | 2,039,187 | ||||||
Toyota Motor Corp. | 245,200 | 16,201,181 | ||||||
Toyota Tsusho Corp. | 59,300 | 1,794,971 | ||||||
Unicharm Corp. | 49,300 | 1,598,771 | ||||||
West Japan Railway Co. | 41,900 | 2,959,201 | ||||||
Yamaha Corp. | 37,300 | 1,832,754 | ||||||
Yaskawa Electric Corp. | 51,500 | 1,616,164 | ||||||
Yokogawa Electric Corp. | 102,300 | 1,647,384 | ||||||
381,813,898 | ||||||||
Netherlands — 3.9% | ||||||||
Aegon NV | 434,820 | 1,466,795 | ||||||
Akzo Nobel NV | 49,504 | 3,923,348 | ||||||
ASML Holding NV | 60,896 | 16,595,704 | ||||||
Heineken NV | 31,952 | 3,166,511 | ||||||
ING Groep NV | 434,255 | 4,106,555 | ||||||
Koninklijke Ahold Delhaize NV | 89,549 | 2,083,372 | ||||||
Koninklijke DSM NV | 32,026 | 3,579,458 | ||||||
Koninklijke KPN NV | 638,856 | 1,544,554 | ||||||
Koninklijke Philips NV | 111,635 | 4,748,057 | ||||||
Koninklijke Vopak NV | 34,058 | 1,614,285 | ||||||
NXP Semiconductors NV | 22,438 | 2,550,976 | ||||||
Prosus NV(b) | 51,431 | 3,596,996 | ||||||
Unilever NV. | 154,684 | 8,090,388 | ||||||
Wolters Kluwer NV | 71,365 | 5,198,882 | ||||||
62,265,881 | ||||||||
New Zealand — 0.3% | ||||||||
Auckland International Airport Ltd. | 329,624 | 1,609,016 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 111,456 | 1,782,187 | ||||||
Meridian Energy Ltd. | 487,642 | 1,397,365 | ||||||
4,788,568 | ||||||||
Norway — 0.9% | ||||||||
Equinor ASA | 383,218 | 5,714,811 | ||||||
Mowi ASA | 72,328 | 1,511,574 | ||||||
Norsk Hydro ASA | 577,183 | 1,624,580 | ||||||
Orkla ASA | 270,044 | 2,258,587 | ||||||
Telenor ASA | 206,887 | 3,284,007 | ||||||
14,393,559 | ||||||||
Portugal — 0.3% | ||||||||
Galp Energia SGPS SA | 297,129 | 4,037,336 | ||||||
Singapore — 1.4% | ||||||||
CapitaLand Ltd. | 1,243,500 | 3,145,056 | ||||||
City Developments Ltd. | 470,400 | 3,292,834 | ||||||
DBS Group Holdings Ltd. | 347,200 | 5,997,701 | ||||||
Keppel Corp. Ltd. | 670,900 | 3,047,579 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 286,600 | 2,176,657 | ||||||
Singapore Telecommunications Ltd. | 1,180,000 | 2,536,362 | ||||||
United Overseas Bank Ltd. | 75,700 | 1,327,747 | ||||||
21,523,936 | ||||||||
Spain — 3.0% | ||||||||
Amadeus IT Group SA | 58,198 | 4,059,401 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 1,679,021 | 7,994,205 | ||||||
Banco Santander SA | 764,836 | 2,795,125 |
12 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EAFE ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Spain (continued) | ||||||||
CaixaBank SA | 715,179 | $ | 1,823,350 | |||||
Enagas SA | 22,083 | 567,615 | ||||||
Iberdrola SA | 989,868 | 11,221,144 | ||||||
Industria de Diseno Textil SA | 209,872 | 6,484,917 | ||||||
Naturgy Energy Group SA | 169,337 | 3,911,752 | ||||||
Red Electrica Corp. SA | 89,822 | 1,711,343 | ||||||
Repsol SA | 372,808 | 4,148,345 | ||||||
Telefonica SA | 412,974 | 2,431,463 | ||||||
47,148,660 | ||||||||
Sweden — 2.8% | ||||||||
Alfa Laval AB | 67,416 | 1,502,676 | ||||||
Assa Abloy AB, Class B | 104,507 | 2,316,485 | ||||||
Atlas Copco AB, Class A | 74,981 | 2,622,568 | ||||||
Atlas Copco AB, Class B | 58,053 | 1,771,212 | ||||||
Boliden AB | 141,273 | 2,891,003 | ||||||
Electrolux AB, Series B | 77,167 | 1,547,702 | ||||||
Essity AB, Class B | 136,092 | 4,037,097 | ||||||
Hennes & Mauritz AB, Class B | 116,189 | 2,077,599 | ||||||
Hexagon AB, Class B | 30,236 | 1,598,640 | ||||||
ICA Gruppen AB | 42,905 | 1,592,270 | ||||||
Sandvik AB | 166,664 | 2,722,981 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 239,483 | 2,258,700 | ||||||
Skanska AB, Class B | 77,749 | 1,675,255 | ||||||
SKF AB, Class B | 91,039 | 1,577,555 | ||||||
Svenska Handelsbanken AB, Class A | 223,263 | 2,221,784 | ||||||
Swedbank AB, Class A | 109,032 | 1,627,872 | ||||||
Tele2 AB, Class B | 118,806 | 1,708,853 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 333,292 | 2,636,056 | ||||||
Telia Co. AB | 707,345 | 2,767,336 | ||||||
Volvo AB, Class B | 203,102 | 3,117,201 | ||||||
44,270,845 | ||||||||
Switzerland — 9.7% | ||||||||
ABB Ltd., Registered | 236,653 | 5,087,813 | ||||||
Adecco Group AG, Registered | 30,044 | 1,594,773 | ||||||
Alcon Inc.(b) | 80,307 | 4,891,679 | ||||||
Barry Callebaut AG, Registered | 875 | 1,792,577 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered | 19 | 1,642,957 | ||||||
Clariant AG, Registered | 72,859 | 1,526,505 | ||||||
Coca-Cola HBC AG | 74,051 | 2,340,043 | ||||||
Credit Suisse Group AG, Registered | 193,436 | 2,160,280 | ||||||
Dufry AG, Registered | 20,260 | 1,469,763 | ||||||
Geberit AG, Registered | 6,735 | 3,332,884 | ||||||
Givaudan SA, Registered | 2,279 | 7,077,508 | ||||||
Julius Baer Group Ltd. | 34,875 | 1,448,756 | ||||||
Kuehne + Nagel International AG, Registered | 23,023 | 3,343,027 | ||||||
LafargeHolcim Ltd., Registered | 35,171 | 1,624,563 | ||||||
Lonza Group AG, Registered | 16,979 | 6,707,753 | ||||||
Nestle SA, Registered | 373,979 | 38,191,874 | ||||||
Roche Holding AG, NVS | 86,827 | 27,780,693 | ||||||
SGS SA, Registered | 1,251 | 3,099,228 | ||||||
Sika AG, Registered | 13,728 | 2,430,889 | ||||||
Sonova Holding AG, Registered | 1 1,642 | 2,763,915 | ||||||
Straumann Holding AG, Registered | 1,741 | 1,620,581 | ||||||
Swiss Re AG | 76,310 | 7,224,597 | ||||||
Swisscom AG, Registered | 7,900 | 4,191,787 | ||||||
Temenos AG, Registered (b) | 10,894 | 1,544,709 | ||||||
UBS Group AG, Registered | 713,857 | 7,817,433 | ||||||
Vifor Pharma AG | 9,690 | 1,608,743 |
Security | Shares | Value | ||||||
Switzerland (continued) | ||||||||
Zurich Insurance Group AG. | 23,481 | $ | 8,997,472 | |||||
153,312,802 | ||||||||
United Kingdom — 15.3% | ||||||||
3i Group PLC | 171,067 | 2,202,520 | ||||||
Antofagasta PLC | 207,389 | 1,992,034 | ||||||
Ashtead Group PLC | 57,915 | 1,767,260 | ||||||
Associated British Foods PLC | 57,538 | 1,657,275 | ||||||
AstraZeneca PLC | 167,578 | 14,542,387 | ||||||
Aviva PLC | 537,220 | 2,407,160 | ||||||
BAE Systems PLC | 500,551 | 3,889,831 | ||||||
Barclays PLC | 1,024,557 | 1,946,512 | ||||||
Barratt Developments PLC | 179,569 | 1,736,741 | ||||||
Berkeley Group Holdings PLC | 33,743 | 2,048,972 | ||||||
BP PLC | 3,398,116 | 17,194,558 | ||||||
British Land Co. PLC (The) | 336,594 | 2,153,958 | ||||||
BT Group PLC | 1,303,115 | 2,357,222 | ||||||
Burberry Group PLC | 84,042 | 1,770,150 | ||||||
Centrica PLC | 1,790,375 | 1,649,274 | ||||||
Coca-Cola European Partners PLC | 70,634 | 3,599,509 | ||||||
Compass Group PLC | 167,387 | 3,657,109 | ||||||
Croda International PLC | 50,837 | 2,957,101 | ||||||
DCC PLC | 34,165 | 2,414,108 | ||||||
Diageo PLC | 390,186 | 13,782,833 | ||||||
easyJet PLC | 90,144 | 1,267,127 | ||||||
Experian PLC | 107,190 | 3,547,438 | ||||||
Ferguson PLC | 44,346 | 3,817,750 | ||||||
GlaxoSmithKline PLC | 621,727 | 12,405,935 | ||||||
Glencore PLC | 937,802 | 2,314,975 | ||||||
HSBC Holdings PLC | 2,170,858 | 14,526,901 | ||||||
Informa PLC | 258,690 | 2,254,820 | ||||||
InterContinental Hotels Group PLC | 27,852 | 1,530,453 | ||||||
Intertek Group PLC | 22,866 | 1,539,196 | ||||||
ITV PLC | 1,125,745 | 1,675,890 | ||||||
J Sainsbury PLC | 720,222 | 1,800,783 | ||||||
Johnson Matthey PLC | 69,752 | 2,237,157 | ||||||
Kingfisher PLC | 844,063 | 2,041,424 | ||||||
Land Securities Group PLC | 138,663 | 1,478,196 | ||||||
Legal & General Group PLC | 881,976 | 2,929,026 | ||||||
Lloyds Banking Group PLC | 6,816,027 | 4,370,470 | ||||||
London Stock Exchange Group PLC | 42,481 | 4,110,814 | ||||||
Marks & Spencer Group PLC | 834,591 | 1,688,581 | ||||||
Meggitt PLC | 218,307 | 1,511,333 | ||||||
Micro Focus International PLC | 171,048 | 1,618,279 | ||||||
Mondi PLC | 147,064 | 2,934,138 | ||||||
National Grid PLC | 637,954 | 8,008,435 | ||||||
Next PLC | 19,034 | 1,478,664 | ||||||
Pearson PLC | 234,475 | 1,669,985 | ||||||
Prudential PLC | 287,073 | 4,645,817 | ||||||
Reckitt Benckiser Group PLC | 76,544 | 5,593,405 | ||||||
RELX PLC | 323,435 | 7,715,086 | ||||||
Rentokil Initial PLC | 280,982 | 1,737,069 | ||||||
Rio Tinto PLC | 153,263 | 7,063,127 | ||||||
Rolls-Royce Holdings PLC | 201,005 | 1,591,812 | ||||||
Sage Group PLC (The) | 172,032 | 1,498,164 | ||||||
Schroders PLC | 65,018 | 2,370,177 | ||||||
Segro PLC | 392,708 | 4,119,190 | ||||||
Smith & Nephew PLC | 109,594 | 2,434,330 | ||||||
Smiths Group PLC | 77,002 | 1,507,778 | ||||||
Spirax-Sarco Engineering PLC | 14,627 | 1,568,444 | ||||||
SSE PLC | 209,764 | 4,096,676 |
S c h e d u l e o f I n v e s t m e n t s | 13 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EAFE ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
Standard Chartered PLC | 424,623 | $ | 3,051,381 | |||||
Standard Life Aberdeen PLC | 427,203 | 1,508,223 | ||||||
Taylor Wimpey PLC | 580,488 | 1,499,228 | ||||||
Tesco PLC | 1,318,921 | 3,849,445 | ||||||
Unilever PLC | 1 19,411 | 6,360,241 | ||||||
Vodafone Group PLC | 3,370,645 | 5,784,638 | ||||||
Whitbread PLC | 28,143 | 1,399,779 | ||||||
Wm Morrison Supermarkets PLC | 759,447 | 1,661,197 | ||||||
WPP PLC | 258,309 | 2,483,775 | ||||||
242,023,266 | ||||||||
Total Common Stocks — 99.4% | ||||||||
(Cost: $1,612,964,439) | 1,572,975,041 |
Preferred Stocks
Germany — 0.3% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS | 31,582 | 1,613,836 | ||||||
Henkel AG & Co. KGaA, Preference Shares, NVS | 17,572 | 1,615,188 | ||||||
Sartorius AG, Preference Shares, NVS | 7,870 | 1,789,474 | ||||||
5,018,498 | ||||||||
Total Preferred Stocks — 0.3% | ||||||||
(Cost: $4,981,360) | 5,018,498 | |||||||
Short-Term Investments
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | ||||||||
1.74% (d)(e)(f) | 3,488,848 | 3,491,290 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 23,000 | $ | 23,000 | |||||
3,514,290 | ||||||||
Total Short-Term Investments — 0.2% | ||||||||
(Cost: $3,513,802) | 3,514,290 | |||||||
Total Investments in Securities — 99.9% | ||||||||
(Cost: $1,621,459,601) | 1,581,507,829 | |||||||
Other Assets, Less Liabilities — 0.1% | 1,511,391 | |||||||
Net Assets — 100.0% | $ | 1,583,019,220 |
(a) | All or a portion of this security is on loan. |
(b) | Non-income producing security. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from |
(d) | registration to qualified institutional investors.Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 2,858,199 | 630,649 | 3,488,848 | $ | 3,491,290 | $ | 12,485 | (b) | $ | 393 | $ | 459 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 195,000 | (172,000 | ) | 23,000 | 23,000 | 6,170 | — | — | ||||||||||||||||||||
$ | 3,514,290 | $ | 18,655 | $ | 393 | $ | 459 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
ASX SPI 200 Index | 5 | 03/19/20 | $ | 514 | $ | (40,164 | ) | |||||||||
Euro STOXX 50 Index | 54 | 03/20/20 | 1,966 | (215,553 | ) | |||||||||||
FTSE 100 Index | 12 | 03/20/20 | 1,000 | (109,469 | ) | |||||||||||
TOPIX Index | 9 | 03/12/20 | 1,251 | (142,261 | ) | |||||||||||
$ | (507,447 | ) |
14 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EAFE ETF |
February 29, 2020 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 507,447 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 473,321 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (608,009 | ) | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments | ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 5,916,921 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 1,572,975,041 | $ | — | $ | — | $ | 1,572,975,041 | ||||||||
Preferred Stocks | 5,018,498 | — | — | 5,018,498 | ||||||||||||
Money Market Funds | 3,514,290 | — | — | 3,514,290 | ||||||||||||
$ | 1,581,507,829 | $ | — | $ | — | $ | 1,581,507,829 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (507,447 | ) | $ | — | $ | — | $ | (507,447 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 15 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EM Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Argentina — 0.2% | ||||||||
Globant SA(a) | 8,715 | $ | 984,882 | |||||
Brazil — 4.1% | ||||||||
Atacadao SA | 99,600 | 456,756 | ||||||
B2W Cia. Digital(a) | 51,900 | 714,946 | ||||||
B3 SA - Brasil, Bolsa, Balcao | 513,200 | 5,459,998 | ||||||
Banco do Brasil SA | 216,100 | 2,244,511 | ||||||
Banco Santander Brasil SA | 102,800 | 908,228 | ||||||
BR Malls Participacoes SA | 199,200 | 721,450 | ||||||
Cielo SA | 298,800 | 453,666 | ||||||
Cosan SA | 41,800 | 677,913 | ||||||
Energisa SA | 38,500 | 460,807 | ||||||
Engie Brasil Energia SA | 49,800 | 524,640 | ||||||
Klabin SA | 174,300 | 743,691 | ||||||
Localiza Rent a Car SA | 151,690 | 1,665,626 | ||||||
Lojas Renner SA | 197,700 | 2,335,600 | ||||||
Natura & Co. Holding SA | 162,400 | 1,638,164 | ||||||
Notre Dame Intermedica Participacoes SA | 120,129 | 1,683,587 | ||||||
TIM Participacoes SA | 210,000 | 750,790 | ||||||
Ultrapar Participacoes SA | 184,000 | 778,146 | ||||||
WEG SA | 209,653 | 2,005,148 | ||||||
24,223,667 | ||||||||
Chile — 0.7% | ||||||||
Aguas Andinas SA, Class A | 671,304 | 229,142 | ||||||
Empresa Nacional de Telecomunicaciones SA(a) | 38,595 | 202,523 | ||||||
Empresas CMPC SA | 277,635 | 558,431 | ||||||
Empresas COPEC SA | 99,533 | 770,342 | ||||||
Enel Americas SA | 9,486,677 | 1,584,332 | ||||||
Latam Airlines Group SA | 62,001 | 412,368 | ||||||
SACI Falabella | 176,418 | 584,956 | ||||||
4,342,094 | ||||||||
China — 26.2% | ||||||||
3SBio Inc.(a)(b) | 322,500 | 334,375 | ||||||
51job Inc., ADR(a) | 6,707 | 501,482 | ||||||
AAC Technologies Holdings Inc. | 180,000 | 1,179,128 | ||||||
Air China Ltd., Class A | 49,800 | 53,147 | ||||||
Air China Ltd., Class H | 484,000 | 389,409 | ||||||
Alibaba Group Holding Ltd., ADR(a) | 145,236 | 30,209,088 | ||||||
Alibaba Health Information Technology Ltd.(a) | 900,000 | 1,725,383 | ||||||
Alibaba Pictures Group Ltd.(a) | 3,750,000 | 505,258 | ||||||
A-Living Services Co. Ltd., Class H(b) | 1 10,000 | 492,618 | ||||||
BAIC Motor Corp. Ltd., Class H(b) | 454,500 | 222,787 | ||||||
Bank of Shanghai Co. Ltd., Class A | 235,500 | 290,071 | ||||||
Baoshan Iron & Steel Co. Ltd., Class A | 263,100 | 195,720 | ||||||
Baozun Inc., ADR(a) | 10,900 | 345,748 | ||||||
BBMG Corp., Class A | 124,500 | 60,022 | ||||||
BBMG Corp., Class H | 709,000 | 199,243 | ||||||
Beijing Enterprises Water Group Ltd. | 1,230,000 | 571,355 | ||||||
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., | ||||||||
Class A | 24,900 | 110,640 | ||||||
Beijing Originwater Technology Co. Ltd., Class A | 38,900 | 54,870 | ||||||
Beijing Sanju Environmental Protection and New Material | ||||||||
Co. Ltd., Class A | 32,900 | 26,404 | ||||||
BEST Inc., ADR(a) | 48,995 | 265,063 | ||||||
BOC Aviation Ltd.(b) | 49,800 | 432,304 | ||||||
BYD Co. Ltd., Class A | 26,700 | 249,689 | ||||||
BYD Co. Ltd., Class H | 159,500 | 976,274 | ||||||
BYD Electronic International Co. Ltd. | 171,000 | 320,362 |
Security | Shares | Value | ||||||
China (continued) | ||||||||
China Agri-Industries Holdings Ltd. | 584,000 | $ | 316,990 | |||||
China CITIC Bank Corp. Ltd., Class H | 2,181,000 | 1,133,452 | ||||||
China Conch Venture Holdings Ltd. | 400,000 | 1,945,323 | ||||||
China Construction Bank Corp., Class H | 23,956,000 | 19,366,333 | ||||||
China Eastern Airlines Corp. Ltd., Class A(a) | 149,400 | 97,032 | ||||||
China Eastern Airlines Corp. Ltd., Class H(a) | 498,000 | 213,436 | ||||||
China Everbright Bank Co. Ltd., Class H | 747,000 | 299,066 | ||||||
China Everbright International Ltd. | 972,000 | 647,331 | ||||||
China Gas Holdings Ltd. | 451,000 | 1,649,354 | ||||||
China Jushi Co. Ltd., Class A | 49,800 | 66,826 | ||||||
China Lesso Group Holdings Ltd. | 252,000 | 378,337 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 781,000 | 408,887 | ||||||
China Medical System Holdings Ltd. | 334,000 | 411,444 | ||||||
China Meheco Co. Ltd., Class A | 13,400 | 28,294 | ||||||
China Mengniu Dairy Co. Ltd. | 694,000 | 2,489,051 | ||||||
China Merchants Bank Co. Ltd., Class H. | 980,500 | 4,623,783 | ||||||
China Merchants Securities Co. Ltd., Class A | 97,000 | 244,921 | ||||||
China Merchants Shekou Industrial Zone Holdings Co. | ||||||||
Ltd., Class A | 124,500 | 308,837 | ||||||
China Minsheng Banking Corp. Ltd., Class H | 1,743,000 | 1,176,456 | ||||||
China Molybdenum Co. Ltd., Class A | 312,000 | 181,660 | ||||||
China Molybdenum Co. Ltd., Class H | 882,000 | 329,347 | ||||||
China Overseas Land & Investment Ltd. | 964,000 | 3,234,754 | ||||||
China Resources Gas Group Ltd. | 218,000 | 1,088,175 | ||||||
China Resources Pharmaceutical Group Ltd.(b) | 373,500 | 324,947 | ||||||
China Shenhua Energy Co. Ltd., Class A | 96,800 | 221,567 | ||||||
China Shenhua Energy Co. Ltd., Class H | 844,500 | 1,465,105 | ||||||
China Vanke Co. Ltd., Class A | 158,600 | 671,365 | ||||||
China Vanke Co. Ltd., Class H | 356,600 | 1,372,762 | ||||||
China Zhongwang Holdings Ltd. | 398,400 | 133,941 | ||||||
CITIC Ltd. | 1,429,000 | 1,586,138 | ||||||
Contemporary Amperex Technology Co. Ltd., Class A | 32,900 | 638,543 | ||||||
Country Garden Services Holdings Co. Ltd. | 299,000 | 1,166,373 | ||||||
CSPC Pharmaceutical Group Ltd. | 1,164,000 | 2,652,702 | ||||||
Dali Foods Group Co. Ltd.(b) | 498,000 | 329,101 | ||||||
Dongfang Electric Corp. Ltd., Class A | 38,000 | 50,285 | ||||||
ENN Energy Holdings Ltd. | 197,200 | 2,185,052 | ||||||
Eve Energy Co. Ltd., Class A(a) | 13,800 | 131,383 | ||||||
Fosun International Ltd. | 641,000 | 816,770 | ||||||
Geely Automobile Holdings Ltd. | 1,245,000 | 2,214,242 | ||||||
GEM Co. Ltd., Class A | 54,800 | 41,942 | ||||||
Genscript Biotech Corp.(a) | 228,000 | 474,546 | ||||||
Greenland Holdings Corp. Ltd., Class A | 124,500 | 104,014 | ||||||
Greentown Service Group Co. Ltd. | 288,000 | 359,951 | ||||||
Guangzhou Automobile Group Co. Ltd., Class A | 21,100 | 32,751 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 758,000 | 845,243 | ||||||
Guoxuan High-Tech Co. Ltd., Class A. | 16,200 | 51,635 | ||||||
Hangzhou Robam Appliances Co. Ltd., Class A | 10,800 | 47,927 | ||||||
Hengli Petrochemical Co. Ltd., Class A | 91,400 | 194,824 | ||||||
Huadong Medicine Co. Ltd., Class A | 24,900 | 68,749 | ||||||
Hutchison China MediTech Ltd., ADR(a) | 15,105 | 352,249 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B. | 38,400 | 26,342 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 348,000 | 402,343 | ||||||
Jinke Properties Group Co. Ltd., Class A. | 74,700 | 80,469 | ||||||
Kingdee International Software Group Co. Ltd. | 576,000 | 736,903 | ||||||
Lee & Man Paper Manufacturing Ltd. | 361,000 | 281,646 | ||||||
Legend Holdings Corp., Class H(b) | 1 19,100 | 204,790 | ||||||
Lenovo Group Ltd. | 1,814,000 | 1,119,631 | ||||||
Meituan Dianping, Class B(a) | 252,400 | 3,203,157 | ||||||
NARI Technology Co. Ltd., Class A | 72,600 | 205,954 |
16 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EM Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
China (continued) | ||||||||
Oceanwide Holdings Co. Ltd., Class A | 47,200 | $ | 28,495 | |||||
Offshore Oil Engineering Co. Ltd., Class A | 74,700 | 62,088 | ||||||
Pinduoduo Inc., ADR(a) | 48,555 | 1,737,298 | ||||||
Poly Developments and Holdings Group Co. Ltd., Class A | 183,500 | 425,004 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., | ||||||||
Class H | 524,000 | 675,084 | ||||||
Shanghai Industrial Holdings Ltd. | 103,000 | 181,865 | ||||||
Shanghai International Airport Co. Ltd., Class A | 15,900 | 149,465 | ||||||
Shanghai International Port Group Co. Ltd., Class A | 1 18,700 | 77,093 | ||||||
Shanghai M&G Stationery Inc., Class A | 12,000 | 76,221 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class A | 41,500 | 110,842 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | 185,100 | 338,703 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 160,000 | 193,608 | ||||||
Shenzhen Inovance Technology Co. Ltd., Class A | 24,900 | 100,844 | ||||||
Shenzhen Investment Ltd. | 898,000 | 301,905 | ||||||
Shenzhou International Group Holdings Ltd. | 189,100 | 2,323,394 | ||||||
Shui On Land Ltd. | 1,245,000 | 247,624 | ||||||
Siasun Robot & Automation Co. Ltd., Class A(a) | 18,600 | 39,833 | ||||||
Sichuan Chuantou Energy Co. Ltd., Class A | 74,700 | 97,780 | ||||||
Sino Biopharmaceutical Ltd. | 1,743,000 | 2,522,894 | ||||||
Sino-Ocean Group Holding Ltd. | 747,000 | 271,269 | ||||||
Sinopharm Group Co. Ltd., Class H | 332,800 | 1,027,048 | ||||||
Sinotrans Ltd., Class H | 809,000 | 228,383 | ||||||
Sinotruk Hong Kong Ltd. | 178,500 | 341,285 | ||||||
SOHO China Ltd. | 562,500 | 203,547 | ||||||
Suning.com Co. Ltd., Class A | 151,100 | 200,596 | ||||||
TBEA Co. Ltd., Class A | 39,000 | 34,759 | ||||||
TCL Technology Group Corp., Class A | 209,000 | 175,806 | ||||||
Tencent Holdings Ltd. | 609,800 | 30,204,195 | ||||||
Towngas China Co. Ltd. | 332,000 | 192,561 | ||||||
Transfar Zhilian Co. Ltd., Class A | 37,700 | 33,546 | ||||||
Vipshop Holdings Ltd., ADR(a) | 109,674 | 1,407,117 | ||||||
Wanxiang Qianchao Co. Ltd., Class A | 29,800 | 23,873 | ||||||
Wuxi Biologics Cayman Inc.(a)(b) | 192,000 | 2,808,656 | ||||||
Xiamen Tungsten Co. Ltd., Class A | 16,900 | 28,867 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., | ||||||||
Class A | 49,800 | 74,947 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., | ||||||||
Class H | 208,800 | 207,379 | ||||||
Yunnan Energy New Material Co. Ltd., Class A | 7,000 | 58,422 | ||||||
Yuzhou Properties Co. Ltd. | 496,000 | 243,129 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 400,000 | 302,321 | ||||||
Zhejiang Huayou Cobalt Co. Ltd., Class A | 15,600 | 84,336 | ||||||
Zhejiang Weixing New Building Materials Co. Ltd., | ||||||||
Class A | 21,000 | 35,630 | ||||||
Zhengzhou Yutong Bus Co. Ltd., Class A | 24,900 | 53,717 | ||||||
Zhongsheng Group Holdings Ltd. | 137,000 | 521,240 | ||||||
Zoomlion Heavy Industry Science and Technology Co. | ||||||||
Ltd., Class A | 94,400 | 84,809 | ||||||
Zoomlion Heavy Industry Science and Technology Co. | ||||||||
Ltd., Class H | 328,600 | 272,391 | ||||||
153,954,740 | ||||||||
Colombia — 0.2% | ||||||||
Grupo Argos SA | 66,234 | 280,094 | ||||||
Interconexion Electrica SA ESP | 1 15,269 | 604,445 | ||||||
884,539 | ||||||||
Czech Republic — 0.2% | ||||||||
CEZ AS | 40,089 | 762,803 |
Security | Shares | Value | ||||||
Czech Republic (continued) | ||||||||
Komercni Banka AS | 17,679 | $ | 538,806 | |||||
1,301,609 | ||||||||
Egypt — 0.3% | ||||||||
Commercial International Bank Egypt SAE | 341,707 | 1,804,659 | ||||||
Greece — 0.3% | ||||||||
Alpha Bank AE(a) | 365,073 | 516,105 | ||||||
Hellenic Telecommunications Organization SA | 60,603 | 853,419 | ||||||
Motor Oil Hellas Corinth Refineries SA | 14,291 | 232,330 | ||||||
Titan Cement International SA(a) | 7,123 | 99,994 | ||||||
1,701,848 | ||||||||
Hungary — 0.6% | ||||||||
MOL Hungarian Oil & Gas PLC | 108,332 | 833,152 | ||||||
OTP Bank Nyrt | 55,554 | 2,401,929 | ||||||
3,235,081 | ||||||||
India — 13.1% | ||||||||
Ambuja Cements Ltd. | 133,826 | 380,241 | ||||||
Ashok Leyland Ltd. | 309,009 | 299,300 | ||||||
Asian Paints Ltd. | 72,207 | 1,798,934 | ||||||
Axis Bank Ltd. | 518,418 | 5,009,081 | ||||||
Bajaj Auto Ltd. | 20,667 | 827,625 | ||||||
Berger Paints India Ltd. | 51,616 | 405,211 | ||||||
Bharat Petroleum Corp. Ltd. | 164,340 | 970,885 | ||||||
Bharti Airtel Ltd.(a) | 611,934 | 4,438,943 | ||||||
Britannia Industries Ltd. | 13,944 | 573,894 | ||||||
Dabur India Ltd. | 128,982 | 886,659 | ||||||
DLF Ltd. | 140,891 | 393,774 | ||||||
Eicher Motors Ltd. | 3,422 | 787,241 | ||||||
Grasim Industries Ltd. | 72,162 | 687,148 | ||||||
Havells India Ltd. | 62,748 | 533,033 | ||||||
HCL Technologies Ltd. | 267,924 | 1,983,790 | ||||||
Hero MotoCorp Ltd. | 24,369 | 692,820 | ||||||
Hindalco Industries Ltd. | 291,712 | 630,171 | ||||||
Hindustan Petroleum Corp. Ltd. | 152,637 | 417,826 | ||||||
Hindustan Unilever Ltd. | 161,361 | 4,862,574 | ||||||
Housing Development Finance Corp. Ltd. | 408,679 | 12,321,105 | ||||||
Infosys Ltd. | 848,538 | 8,603,253 | ||||||
Lupin Ltd. | 56,025 | 496,844 | ||||||
Mahindra & Mahindra Ltd. | 184,893 | 1,170,961 | ||||||
Marico Ltd. | 109,432 | 453,013 | ||||||
Nestle India Ltd. | 5,727 | 1,252,163 | ||||||
Petronet LNG Ltd. | 155,406 | 528,877 | ||||||
Pidilite Industries Ltd. | 31,872 | 668,244 | ||||||
Piramal Enterprises Ltd. | 25,896 | 468,832 | ||||||
Reliance Industries Ltd. | 711,403 | 13,097,386 | ||||||
Shree Cement Ltd. | 2,241 | 703,996 | ||||||
Siemens Ltd. | 17,280 | 312,174 | ||||||
Tata Consultancy Services Ltd. | 224,297 | 6,216,478 | ||||||
Tech Mahindra Ltd. | 1 13,793 | 1,173,763 | ||||||
Titan Co. Ltd. | 78,435 | 1,363,449 | ||||||
UPL Ltd. | 133,464 | 961,115 | ||||||
Wipro Ltd. | 283,639 | 870,362 | ||||||
77,241,165 | ||||||||
Indonesia — 3.2% | ||||||||
Astra International Tbk PT. | 5,023,500 | 1,934,472 | ||||||
Bank Central Asia Tbk PT | 2,440,200 | 5,348,966 | ||||||
Bank Mandiri Persero Tbk PT | 4,606,500 | 2,335,758 | ||||||
Bank Negara Indonesia Persero Tbk PT | 1,834,700 | 898,329 | ||||||
Bank Rakyat Indonesia Persero Tbk PT. | 13,844,400 | 4,043,076 |
S c h e d u l e o f I n v e s t m e n t s | 17 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EM Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Indonesia (continued) | ||||||||
Barito Pacific Tbk PT(a) | 6,686,100 | $ | 459,021 | |||||
Bukit Asam Tbk PT | 1,068,600 | 166,835 | ||||||
Indah Kiat Pulp & Paper Corp. Tbk PT | 672,300 | 263,578 | ||||||
Indofood Sukses Makmur Tbk PT | 1,068,600 | 484,119 | ||||||
Jasa Marga Persero Tbk PT | 604,100 | 197,051 | ||||||
Kalbe Farma Tbk PT | 5,494,200 | 467,184 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk PT | 361,200 | 151,051 | ||||||
Pakuwon Jati Tbk PT | 4,639,000 | 171,366 | ||||||
Perusahaan Gas Negara Tbk PT | 2,705,000 | 241,324 | ||||||
Unilever Indonesia Tbk PT | 1,875,100 | 891,971 | ||||||
United Tractors Tbk PT | 429,400 | 496,814 | ||||||
18,550,915 | ||||||||
Malaysia — 3.2% | ||||||||
AMMB Holdings Bhd | 398,400 | 349,722 | ||||||
Axiata Group Bhd | 697,200 | 691,411 | ||||||
CIMB Group Holdings Bhd | 1,221,100 | 1,396,371 | ||||||
DiGi.Com Bhd | 771,900 | 761,828 | ||||||
Fraser & Neave Holdings Bhd | 48,200 | 351,294 | ||||||
HAP Seng Consolidated Bhd | 149,400 | 317,586 | ||||||
Hartalega Holdings Bhd | 388,400 | 571,312 | ||||||
Hong Leong Bank Bhd | 157,400 | 571,345 | ||||||
IHH Healthcare Bhd | 547,800 | 740,797 | ||||||
Malayan Banking Bhd | 967,600 | 1,932,904 | ||||||
Maxis Bhd | 597,600 | 769,862 | ||||||
MISC Bhd | 367,400 | 661,582 | ||||||
Nestle Malaysia Bhd | 22,800 | 773,523 | ||||||
Petronas Dagangan Bhd | 82,600 | 447,588 | ||||||
PPB Group Bhd | 137,500 | 590,451 | ||||||
Press Metal Aluminium Holdings Bhd | 373,500 | 412,932 | ||||||
Public Bank Bhd | 772,300 | 3,133,174 | ||||||
RHB Bank Bhd | 398,400 | 524,584 | ||||||
Sime Darby Bhd | 647,400 | 307,189 | ||||||
Telekom Malaysia Bhd | 286,700 | 251,670 | ||||||
Tenaga Nasional Bhd | 771,900 | 2,215,893 | ||||||
Top Glove Corp. Bhd | 387,500 | 518,505 | ||||||
Westports Holdings Bhd | 273,900 | 223,539 | ||||||
YTL Corp. Bhd | 810,900 | 162,565 | ||||||
18,677,627 | ||||||||
Mexico — 1.8% | ||||||||
Alfa SAB de CV, Class A | 747,000 | 474,316 | ||||||
Alsea SAB de CV(a) | 137,900 | 278,078 | ||||||
Arca Continental SAB de CV | 107,300 | 585,322 | ||||||
Cemex SAB de CV, CPO, NVS | 3,807,076 | 1,219,249 | ||||||
Coca-Cola Femsa SAB de CV | 129,900 | 715,101 | ||||||
Fomento Economico Mexicano SAB de CV | 481,900 | 3,875,599 | ||||||
Gruma SAB de CV, Series B | 52,290 | 499,379 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 52,600 | 863,244 | ||||||
Grupo Bimbo SAB de CV, Series A | 398,400 | 597,504 | ||||||
Industrias Penoles SAB de CV | 34,860 | 312,457 | ||||||
Infraestructura Energetica Nova SAB de CV | 136,700 | 591,228 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A | 394,400 | 742,520 | ||||||
10,753,997 | ||||||||
Philippines — 1.3% | ||||||||
Aboitiz Equity Ventures Inc. | 473,100 | 395,835 | ||||||
Aboitiz Power Corp. | 398,400 | 214,929 | ||||||
Bank of the Philippine Islands | 206,670 | 300,426 | ||||||
BDO Unibank Inc. | 485,550 | 1,324,011 | ||||||
Globe Telecom Inc. | 8,715 | 304,149 | ||||||
JG Summit Holdings Inc. | 727,080 | 962,784 |
Security | Shares | Value | ||||||
Philippines (continued) | ||||||||
Manila Electric Co. | 49,800 | $ | 263,581 | |||||
Metropolitan Bank & Trust Co. | 435,440 | 478,792 | ||||||
SM Investments Corp. | 64,065 | 1,224,744 | ||||||
SM Prime Holdings Inc. | 2,502,200 | 1,880,025 | ||||||
7,349,276 | ||||||||
Poland — 1.0% | ||||||||
Bank Millennium SA(a) | 156,388 | 191,424 | ||||||
Bank Polska Kasa Opieki SA | 41,085 | 917,423 | ||||||
CCC SA | 7,307 | 133,345 | ||||||
Grupa Lotos SA | 23,655 | 356,742 | ||||||
KGHM Polska Miedz SA(a) | 35,607 | 637,055 | ||||||
mBank SA(a) | 3,735 | 282,301 | ||||||
Orange Polska SA(a) | 162,889 | 254,908 | ||||||
Polski Koncern Naftowy ORLEN SA | 75,223 | 1,118,796 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA. | 449,710 | 361,347 | ||||||
Powszechny Zaklad Ubezpieczen SA | 150,894 | 1,329,943 | ||||||
Santander Bank Polska SA. | 8,715 | 554,372 | ||||||
6,137,656 | ||||||||
Qatar — 1.2% | ||||||||
Commercial Bank PSQC (The) | 580,292 | 716,400 | ||||||
Ooredoo QPSC. | 268,380 | 463,055 | ||||||
Qatar National Bank QPSC | 1,172,892 | 6,028,779 | ||||||
7,208,234 | ||||||||
Russia — 2.6% | ||||||||
Inter RAO UES PJSC | 9,213,000 | 713,459 | ||||||
LUKOIL PJSC | 104,114 | 8,830,324 | ||||||
Novatek PJSC, GDR(c) | 22,659 | 3,247,035 | ||||||
Novolipetsk Steel PJSC | 306,270 | 569,425 | ||||||
PhosAgro PJSC, GDR(c) | 25,341 | 279,005 | ||||||
Polymetal International PLC | 50,826 | 775,323 | ||||||
Polyus PJSC | 6,568 | 827,255 | ||||||
15,241,826 | ||||||||
Saudi Arabia — 1.2% | ||||||||
Almarai Co. JSC | 62,259 | 760,086 | ||||||
Banque Saudi Fransi. | 137,199 | 1,245,269 | ||||||
Saudi Arabian Mining Co.(a) | 108,564 | 1,102,569 | ||||||
Saudi Basic Industries Corp. | 187,535 | 3,934,161 | ||||||
7,042,085 | ||||||||
South Africa — 8.6% | ||||||||
Absa Group Ltd. | 177,326 | 1,491,290 | ||||||
Anglo American Platinum Ltd. | 13,559 | 902,704 | ||||||
Aspen Pharmacare Holdings Ltd.(a) | 98,853 | 628,376 | ||||||
Bid Corp. Ltd. | 82,979 | 1,467,053 | ||||||
Bidvest Group Ltd. (The) | 73,953 | 846,171 | ||||||
Clicks Group Ltd. | 66,981 | 1,002,703 | ||||||
Exxaro Resources Ltd. | 63,246 | 450,278 | ||||||
FirstRand Ltd. | 830,913 | 2,911,351 | ||||||
Fortress REIT Ltd., Series A | 278,798 | 286,215 | ||||||
Foschini Group Ltd. (The) | 61,058 | 484,109 | ||||||
Gold Fields Ltd. | 207,915 | 1,218,824 | ||||||
Growthpoint Properties Ltd. | 735,100 | 822,411 | ||||||
Investec Ltd. | 68,475 | 343,300 | ||||||
Kumba Iron Ore Ltd. | 16,987 | 303,070 | ||||||
Liberty Holdings Ltd. | 37,350 | 222,488 | ||||||
Life Healthcare Group Holdings Ltd. | 344,118 | 487,800 | ||||||
Momentum Metropolitan Holdings | 244,999 | 277,213 | ||||||
Mr. Price Group Ltd. | 65,333 | 626,979 | ||||||
MTN Group Ltd. | 421,557 | 1,974,939 | ||||||
MultiChoice Group Ltd.(a) | 111,054 | 638,306 |
18 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EM Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
South Africa (continued) | ||||||||
Naspers Ltd., Class N | 1 10,631 | $ | 16,743,844 | |||||
Nedbank Group Ltd. | 90,564 | 1,016,719 | ||||||
NEPI Rockcastle PLC | 94,620 | 685,674 | ||||||
Northam Platinum Ltd.(a) | 90,078 | 636,784 | ||||||
Old Mutual Ltd. | 1,217,859 | 1,212,324 | ||||||
Pick n Pay Stores Ltd. | 87,399 | 306,895 | ||||||
PSG Group Ltd. | 37,101 | 440,075 | ||||||
Redefine Properties Ltd. | 1,351,095 | 466,354 | ||||||
Remgro Ltd. | 130,725 | 1,329,562 | ||||||
RMB Holdings Ltd. | 198,453 | 883,808 | ||||||
Sanlam Ltd. | 470,610 | 1,943,886 | ||||||
Sasol Ltd. | 141,626 | 1,673,602 | ||||||
Shoprite Holdings Ltd. | 1 17,330 | 836,223 | ||||||
SPAR Group Ltd. (The) | 46,346 | 483,154 | ||||||
Standard Bank Group Ltd. | 320,096 | 3,021,597 | ||||||
Vodacom Group Ltd. | 159,609 | 1,112,692 | ||||||
Woolworths Holdings Ltd. | 249,996 | 568,119 | ||||||
50,746,892 | ||||||||
South Korea — 5.8% | ||||||||
Amorepacific Corp.(a) | 7,968 | 1,056,277 | ||||||
AMOREPACIFIC Group(a) | 7,281 | 371,694 | ||||||
BNK Financial Group Inc. | 66,732 | 339,017 | ||||||
CJ CheilJedang Corp. | 1,992 | 400,204 | ||||||
CJ Corp. | 3,735 | 247,565 | ||||||
Coway Co. Ltd. | 13,011 | 738,129 | ||||||
Doosan Bobcat Inc. | 1 1,594 | 271,115 | ||||||
GS Engineering & Construction Corp. | 14,193 | 306,765 | ||||||
GS Holdings Corp. | 13,729 | 466,300 | ||||||
Hana Financial Group Inc. | 74,202 | 1,918,438 | ||||||
Hankook Tire & Technology Co. Ltd. | 17,679 | 371,194 | ||||||
Hanwha Solutions Corp. | 26,643 | 391,583 | ||||||
Hyundai Heavy Industries Holdings Co. Ltd. | 2,490 | 554,586 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 15,238 | 283,556 | ||||||
KB Financial Group Inc. | 98,604 | 3,158,251 | ||||||
Korea Gas Corp. | 8,340 | 192,963 | ||||||
LG Chem Ltd. | 1 1,454 | 3,470,623 | ||||||
LG Corp. | 23,655 | 1,314,708 | ||||||
LG Display Co. Ltd.(a) | 57,519 | 644,099 | ||||||
LG Electronics Inc. | 26,643 | 1,325,020 | ||||||
LG Household & Health Care Ltd. | 2,329 | 2,341,465 | ||||||
LG Innotek Co. Ltd. | 3,586 | 383,845 | ||||||
Lotte Chemical Corp. | 4,233 | 653,510 | ||||||
Lotte Corp. | 6,928 | 165,713 | ||||||
OCI Co. Ltd.(a) | 5,079 | 205,962 | ||||||
Samsung Card Co. Ltd. | 7,604 | 210,996 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 7,638 | 1,245,224 | ||||||
Samsung SDI Co. Ltd. | 13,695 | 3,326,493 | ||||||
Shinhan Financial Group Co. Ltd. | 1 13,295 | 3,013,115 | ||||||
SK Holdings Co. Ltd. | 8,946 | 1,414,271 | ||||||
SK Innovation Co. Ltd. | 13,942 | 1,297,197 | ||||||
SK Telecom Co. Ltd. | 4,849 | 848,425 | ||||||
S-Oil Corp. | 1 1,519 | 631,672 | ||||||
Yuhan Corp. | 2,414 | 425,357 | ||||||
33,985,332 | ||||||||
Taiwan — 15.1% | ||||||||
Acer Inc. | 747,000 | 403,357 | ||||||
Advantech Co. Ltd. | 80,000 | 778,084 | ||||||
ASE Technology Holding Co. Ltd. | 856,000 | 2,015,648 | ||||||
AU Optronics Corp. | 2,241,000 | 703,099 |
Security | Shares | Value | ||||||
Taiwan (continued) | ||||||||
Catcher Technology Co. Ltd. | 164,000 | $ | 1,283,641 | |||||
Cathay Financial Holding Co. Ltd. | 1,971,000 | 2,606,996 | ||||||
Chailease Holding Co. Ltd. | 288,000 | 1,093,809 | ||||||
Cheng Shin Rubber Industry Co. Ltd. | 498,000 | 650,470 | ||||||
China Airlines Ltd. | 817,000 | 220,173 | ||||||
China Steel Corp. | 2,988,000 | 2,269,654 | ||||||
Chunghwa Telecom Co. Ltd. | 957,000 | 3,413,399 | ||||||
CTBC Financial Holding Co. Ltd. | 4,653,000 | 3,488,271 | ||||||
Delta Electronics Inc. | 487,000 | 2,251,688 | ||||||
E.Sun Financial Holding Co. Ltd. | 2,617,000 | 2,510,737 | ||||||
Eva Airways Corp. | 498,000 | 198,184 | ||||||
Evergreen Marine Corp. Taiwan Ltd.(a) | 646,000 | 246,414 | ||||||
Far Eastern New Century Corp. | 791,000 | 737,983 | ||||||
Far EasTone Telecommunications Co. Ltd. | 366,000 | 798,976 | ||||||
First Financial Holding Co. Ltd. | 2,490,000 | 1,948,942 | ||||||
Fubon Financial Holding Co. Ltd. | 1,673,000 | 2,455,947 | ||||||
Giant Manufacturing Co. Ltd. | 71,000 | 385,723 | ||||||
Hiwin Technologies Corp. | 57,000 | 567,562 | ||||||
Hotai Motor Co. Ltd. | 65,000 | 1,345,960 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 2,038,000 | 1,450,450 | ||||||
Innolux Corp. | 2,090,000 | 545,286 | ||||||
Inventec Corp. | 657,000 | 497,966 | ||||||
Lite-On Technology Corp. | 498,000 | 721,191 | ||||||
MediaTek Inc. | 377,000 | 4,482,240 | ||||||
Nan Ya Plastics Corp. | 1,259,000 | 2,831,549 | ||||||
President Chain Store Corp. | 146,000 | 1,429,647 | ||||||
Quanta Computer Inc. | 686,000 | 1,404,647 | ||||||
Ruentex Development Co. Ltd. | 153,000 | 207,423 | ||||||
SinoPac Financial Holdings Co. Ltd. | 2,761,000 | 1,185,389 | ||||||
Standard Foods Corp. | 84,000 | 188,365 | ||||||
Taishin Financial Holding Co. Ltd. | 2,241,000 | 1,050,949 | ||||||
Taiwan Business Bank | 1,396,000 | 553,246 | ||||||
Taiwan High Speed Rail Corp. | 498,000 | 567,414 | ||||||
Taiwan Mobile Co. Ltd. | 413,000 | 1,432,157 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,990,000 | 31,203,950 | ||||||
Tatung Co. Ltd.(a) | 473,000 | 328,825 | ||||||
Uni-President Enterprises Corp. | 1,214,000 | 2,934,817 | ||||||
United Microelectronics Corp. | 2,739,000 | 1,383,996 | ||||||
Wistron Corp. | 747,000 | 667,328 | ||||||
Yuanta Financial Holding Co. Ltd. | 2,490,000 | 1,578,890 | ||||||
89,020,442 | ||||||||
Thailand — 3.7% | ||||||||
Advanced Info Service PCL, NVDR | 298,800 | 1,893,836 | ||||||
Airports of Thailand PCL, NVDR | 1,070,700 | 2,027,391 | ||||||
B Grimm Power PCL, NVDR | 171,200 | 245,501 | ||||||
Bangkok Dusit Medical Services PCL, NVDR | 2,340,600 | 1,646,690 | ||||||
Banpu PCL, NVDR | 1,020,900 | 229,706 | ||||||
BTS Group Holdings PCL, NVDR. | 1,892,400 | 653,689 | ||||||
Bumrungrad Hospital PCL, NVDR | 99,600 | 405,597 | ||||||
Central Pattana PCL, NVDR | 522,900 | 878,266 | ||||||
CP ALL PCL, NVDR | 1,444,200 | 3,009,227 | ||||||
Electricity Generating PCL, NVDR | 74,700 | 646,272 | ||||||
Energy Absolute PCL, NVDR | 423,300 | 523,172 | ||||||
Global Power Synergy PCL, NVDR | 175,400 | 350,189 | ||||||
Gulf Energy Development PCL, NVDR. | 132,700 | 695,986 | ||||||
Home Product Center PCL, NVDR. | 1,743,000 | 707,032 | ||||||
Indorama Ventures PCL, NVDR | 423,300 | 348,781 | ||||||
IRPC PCL, NVDR . | 2,689,200 | 187,490 | ||||||
Kasikornbank PCL | 282,000 | 1,067,945 | ||||||
Kasikornbank PCL, NVDR | 152,300 | 574,353 |
S c h e d u l e o f I n v e s t m e n t s | 19 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EM Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Thailand (continued) | ||||||||
Land & Houses PCL, NVDR | 1,892,400 | $ | 503,760 | |||||
Minor International PCL, NVDR | 672,300 | 585,906 | ||||||
Muangthai Capital PCL, NVDR | 199,200 | 362,985 | ||||||
PTT Global Chemical PCL, NVDR | 547,800 | 716,107 | ||||||
Siam Cement PCL (The), NVDR | 199,200 | 1,956,964 | ||||||
Siam Commercial Bank PCL (The), NVDR | 199,200 | 550,791 | ||||||
Thai Oil PCL, NVDR | 273,900 | 375,414 | ||||||
TMB Bank PCL, NVDR | 5,851,500 | 202,128 | ||||||
True Corp. PCL, NVDR | 2,888,400 | 303,898 | ||||||
21,649,076 | ||||||||
Turkey — 0.2% | ||||||||
Arcelik AS(a) | 50,307 | 149,571 | ||||||
KOC Holding AS | 191,133 | 526,061 | ||||||
Turkcell Iletisim Hizmetleri AS | 269,393 | 596,615 | ||||||
1,272,247 | ||||||||
United Arab Emirates — 0.9% | ||||||||
Abu Dhabi Commercial Bank PJSC | 688,485 | 1,336,518 | ||||||
DP World PLC | 41,334 | 671,677 | ||||||
Dubai Islamic Bank PJSC | 422,304 | 620,883 | ||||||
First Abu Dhabi Bank PJSC | 688,485 | 2,684,284 | ||||||
5,313,362 | ||||||||
Total Common Stocks — 95.7% | ||||||||
(Cost: $609,251,661) | 562,623,251 |
Preferred Stocks
Brazil — 3.6% | ||||||||
Banco Bradesco SA, Preference Shares, NVS | 1,005,000 | 6,800,760 | ||||||
Cia. Brasileira de Distribuicao, Preference Shares, NVS | 39,900 | 637,724 | ||||||
Cia. Energetica de Minas Gerais, Preference | ||||||||
Shares, NVS | 229,600 | 710,431 |
Security | Shares | Value | ||||||
Brazil (continued) | ||||||||
Itau Unibanco Holding SA, Preference Shares, NVS | 1,207,800 | $ | 8,566,622 | |||||
Itausa-Investimentos Itau SA, Preference Shares, NVS | 1,095,600 | 2,916,484 | ||||||
Telefonica Brasil SA, Preference Shares, NVS | 110,424 | 1,306,492 | ||||||
20,938,513 | ||||||||
Chile — 0.2% | ||||||||
Embotelladora Andina SA, Class B, Preference Shares | 96,363 | 232,001 | ||||||
Sociedad Quimica y Minera de Chile SA, Series B, | ||||||||
Preference Shares | 29,050 | 759,812 | ||||||
991,813 | ||||||||
South Korea — 0.1% | ||||||||
Amorepacific Corp., Preference Shares, NVS | 2,241 | 135,438 | ||||||
LG Chem Ltd., Preference Shares, NVS | 1,743 | 268,375 | ||||||
LG Household & Health Care Ltd., Preference | ||||||||
Shares, NVS. | 498 | 300,563 | ||||||
704,376 | ||||||||
Total Preferred Stocks — 3.9% | ||||||||
(Cost: $25,733,972) | 22,634,702 | |||||||
Total Investments in Securities — 99.6% | ||||||||
(Cost: $634,985,633) | 585,257,953 | |||||||
Other Assets, Less Liabilities — 0.4% | 2,464,967 | |||||||
Net Assets — 100.0% | $ | 587,722,920 |
(a) | Non-income producing security. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the period ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Change in | |||||||||||||||||||||||||||
Shares | Shares | Unrealized | |||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | |||||||||||||||||||||||
Affiliated Issuer | 02/05/20(a) | Net Activity | 02/29/20 | 02/29/20 | Income | Gain (Loss)(b) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | — | — | $ | — | $ | 118 | $ | — | $ | — |
(a) The Fund commenced operations on February 05, 2020.
(b) Includes realized capital gain distributions from an affiliated fund, if any.
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | �� | Expiration | Amount | Appreciation | ||||||||||||
Description | Contracts | Date | (000) | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
MSCI Emerging Markets E-Mini | 36 | 03/20/20 | $ | 1,816 | $ | (36,939 | ) |
20 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI EM Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 36,939 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 83,514 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (36,939 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 1,815,840 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 562,623,251 | $ | — | $ | — | $ | 562,623,251 | ||||||||
Preferred Stocks | 22,634,702 | — | — | 22,634,702 | ||||||||||||
$ | 585,257,953 | $ | — | $ | — | $ | 585,257,953 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (36,939 | ) | $ | — | $ | — | $ | (36,939 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 21 |
Schedule of Investments (unaudited) | iShares® ESG MSCI USA ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 2.1% | ||||||||
Arconic Inc. | 1 15,760 | $ | 3,397,556 | |||||
HEICO Corp., Class A | 37,305 | 3,295,151 | ||||||
Huntington Ingalls Industries Inc. | 25,477 | 5,236,288 | ||||||
L3Harris Technologies Inc. | 56,872 | 11,245,300 | ||||||
Raytheon Co. | 83,461 | 15,737,406 | ||||||
Spirit AeroSystems Holdings Inc., Class A | 57,451 | 3,035,711 | ||||||
Teledyne Technologies Inc.(a) | 9,925 | 3,347,901 | ||||||
TransDigm Group Inc. | 6,002 | 3,347,976 | ||||||
United Technologies Corp. | 163,910 | 21,405,007 | ||||||
70,048,296 | ||||||||
Air Freight & Logistics — 0.8% | ||||||||
CH Robinson Worldwide Inc. | 52,945 | 3,647,911 | ||||||
Expeditors International of Washington Inc. | 197,515 | 13,909,006 | ||||||
United Parcel Service Inc., Class B | 93,464 | 8,457,557 | ||||||
26,014,474 | ||||||||
Airlines — 0.1% | ||||||||
Delta Air Lines Inc. | 65,363 | 3,015,195 | ||||||
Auto Components — 0.1% | ||||||||
Aptiv PLC | 57,554 | 4,495,543 | ||||||
Automobiles — 0.4% | ||||||||
Tesla Inc.(a) | 19,099 | 12,757,941 | ||||||
Banks — 3.7% | ||||||||
Bank of America Corp. | 1,072,283 | 30,560,066 | ||||||
Citigroup Inc. | 256,563 | 16,281,488 | ||||||
Comerica Inc. | 94,797 | 4,990,114 | ||||||
JPMorgan Chase & Co. | 293,677 | 34,098,836 | ||||||
KeyCorp | 529,412 | 8,655,886 | ||||||
PNC Financial Services Group Inc. (The) | 101,230 | 12,795,472 | ||||||
Regions Financial Corp. | 442,398 | 5,981,221 | ||||||
SVB Financial Group(a) | 15,039 | 3,130,518 | ||||||
Truist Financial Corp. | 109,841 | 5,068,064 | ||||||
Zions Bancorp. N.A. | 106,875 | 4,269,656 | ||||||
125,831,321 | ||||||||
Beverages — 2.4% | ||||||||
Brown-Forman Corp., Class B, NVS | 53,616 | 3,292,559 | ||||||
Coca-Cola Co. (The) | 703,578 | 37,634,387 | ||||||
Molson Coors Beverage Co., Class B | 124,334 | 6,168,210 | ||||||
PepsiCo Inc. | 264,868 | 34,970,522 | ||||||
82,065,678 | ||||||||
Biotechnology — 2.5% | ||||||||
AbbVie Inc. | 214,850 | 18,414,793 | ||||||
Amgen Inc. | 109,024 | 21,775,364 | ||||||
Biogen Inc.(a) | 30,684 | 9,462,639 | ||||||
Gilead Sciences Inc. | 321,242 | 22,281,345 | ||||||
Vertex Pharmaceuticals Inc.(a) | 53,880 | 12,070,736 | ||||||
84,004,877 | ||||||||
Building Products — 0.9% | ||||||||
Allegion PLC | 33,090 | 3,805,019 | ||||||
Fortune Brands Home & Security Inc. | 52,928 | 3,268,304 | ||||||
Johnson Controls International PLC | 475,330 | 17,382,818 | ||||||
Lennox International Inc. | 15,586 | 3,555,634 | ||||||
Owens Corning | 60,904 | 3,440,467 | ||||||
31,452,242 | ||||||||
Capital Markets — 3.5% | ||||||||
Ameriprise Financial Inc. | 21,663 | 3,060,982 |
Security | Shares | Value | ||||||
Capital Markets (continued) | ||||||||
Bank of New York Mellon Corp. (The) | 206,148 | $ | 8,225,305 | |||||
BlackRock Inc.(b) | 35,327 | 16,356,754 | ||||||
Charles Schwab Corp. (The) | 87,375 | 3,560,531 | ||||||
CME Group Inc. | 38,968 | 7,747,618 | ||||||
FactSet Research Systems Inc. | 20,474 | 5,445,879 | ||||||
Franklin Resources Inc. | 152,417 | 3,316,594 | ||||||
Goldman Sachs Group Inc. (The) | 24,286 | 4,875,900 | ||||||
Intercontinental Exchange Inc. | 81,661 | 7,285,795 | ||||||
Invesco Ltd. | 217,954 | 3,138,538 | ||||||
Moody's Corp. | 33,777 | 8,107,493 | ||||||
Morgan Stanley | 210,932 | 9,498,268 | ||||||
Northern Trust Corp. | 111,958 | 9,825,434 | ||||||
S&P Global Inc. | 44,651 | 11,873,148 | ||||||
State Street Corp. | 125,557 | 8,551,687 | ||||||
T Rowe Price Group Inc. | 72,439 | 8,548,526 | ||||||
119,418,452 | ||||||||
Chemicals — 2.2% | ||||||||
Air Products & Chemicals Inc. | 15,104 | 3,316,990 | ||||||
Axalta Coating Systems Ltd.(a) | 214,878 | 5,354,760 | ||||||
Corteva Inc.(a) | 122,452 | 3,330,694 | ||||||
Dow Inc.(a) | 80,584 | 3,256,399 | ||||||
DuPont de Nemours Inc. | 110,235 | 4,729,082 | ||||||
Ecolab Inc. | 135,767 | 24,499,155 | ||||||
International Flavors & Fragrances Inc. | 38,590 | 4,622,310 | ||||||
Linde PLC | 64,428 | 12,306,392 | ||||||
Mosaic Co. (The). | 225,623 | 3,842,360 | ||||||
PPG Industries Inc. | 46,229 | 4,828,619 | ||||||
Sherwin-Williams Co. (The). | 9,181 | 4,744,282 | ||||||
74,831,043 | ||||||||
Commercial Services & Supplies — 0.1% | ||||||||
Copart Inc.(a) | 40,813 | 3,447,882 | ||||||
Communications Equipment — 0.9% | ||||||||
Cisco Systems Inc. | 609,721 | 24,346,159 | ||||||
Motorola Solutions Inc. | 37,126 | 6,151,036 | ||||||
30,497,195 | ||||||||
Consumer Finance — 0.8% | ||||||||
Ally Financial Inc. | 224,744 | 5,634,332 | ||||||
American Express Co. | 203,524 | 22,373,393 | ||||||
28,007,725 | ||||||||
Containers & Packaging — 0.4% | ||||||||
Amcor PLC(a) | 817,565 | 7,619,706 | ||||||
Ball Corp. | 88,587 | 6,241,840 | ||||||
13,861,546 | ||||||||
Diversified Financial Services — 0.7% | ||||||||
Berkshire Hathaway Inc., Class B(a) | 86,563 | 17,861,409 | ||||||
Equitable Holdings Inc. | 143,870 | 3,078,818 | ||||||
Voya Financial Inc. | 64,922 | 3,417,494 | ||||||
24,357,721 | ||||||||
Diversified Telecommunication Services — 1.7% | ||||||||
AT&T Inc. | 787,065 | 27,720,429 | ||||||
CenturyLink Inc. | 287,303 | 3,467,747 | ||||||
Verizon Communications Inc. | 510,547 | 27,651,226 | ||||||
58,839,402 | ||||||||
Electric Utilities — 2.7% | ||||||||
Edison International | 49,810 | 3,346,734 | ||||||
Eversource Energy | 262,472 | 22,693,329 | ||||||
Exelon Corp. | 402,820 | 17,365,570 |
22 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electric Utilities (continued) | ||||||||
NextEra Energy Inc. | 188,038 | $ | 47,528,485 | |||||
90,934,118 | ||||||||
Electrical Equipment — 0.1% | ||||||||
Rockwell Automation Inc. | 19,304 | 3,542,284 | ||||||
Electronic Equipment, Instruments & Components — 0.7% | ||||||||
Corning Inc. | 137,129 | 3,271,898 | ||||||
FLIR Systems Inc. | 67,860 | 2,882,014 | ||||||
Keysight Technologies Inc.(a) | 57,199 | 5,420,177 | ||||||
TE Connectivity Ltd. | 80,907 | 6,704,763 | ||||||
Trimble Inc.(a) | 138,045 | 5,450,017 | ||||||
23,728,869 | ||||||||
Energy Equipment & Services — 0.4% | ||||||||
Baker Hughes Co. | 344,768 | 5,547,317 | ||||||
National Oilwell Varco Inc. | 144,115 | 2,696,392 | ||||||
Schlumberger Ltd. | 158,469 | 4,292,925 | ||||||
TechnipFMC PLC | 134,339 | 1,993,591 | ||||||
14,530,225 | ||||||||
Entertainment — 1.7% | ||||||||
Activision Blizzard Inc. | 75,425 | 4,384,455 | ||||||
Electronic Arts Inc.(a) | 34,681 | 3,515,613 | ||||||
Netflix Inc.(a) | 48,478 | 17,889,836 | ||||||
Roku Inc.(a) | 30,129 | 3,424,764 | ||||||
Walt Disney Co. (The) | 237,795 | 27,976,582 | ||||||
57,191,250 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 3.1% | ||||||||
Alexandria Real Estate Equities Inc. | 24,630 | 3,740,804 | ||||||
American Tower Corp. | 67,355 | 15,276,114 | ||||||
Boston Properties Inc. | 45,862 | 5,913,446 | ||||||
Equinix Inc. | 18,746 | 10,737,709 | ||||||
Equity Residential | 44,481 | 3,340,523 | ||||||
Healthpeak Properties Inc. | 361,171 | 11,427,451 | ||||||
Host Hotels & Resorts Inc. | 227,689 | 3,296,937 | ||||||
Iron Mountain Inc. | 222,472 | 6,765,374 | ||||||
Prologis Inc. | 219,263 | 18,479,486 | ||||||
Regency Centers Corp. | 87,594 | 5,031,399 | ||||||
SBA Communications Corp. | 16,633 | 4,409,242 | ||||||
UDR Inc. | 96,106 | 4,322,848 | ||||||
Ventas Inc. | 36,043 | 1,938,032 | ||||||
Welltower Inc. | 72,399 | 5,416,893 | ||||||
Weyerhaeuser Co. | 175,788 | 4,566,972 | ||||||
104,663,230 | ||||||||
Food & Staples Retailing — 0.8% | ||||||||
Costco Wholesale Corp. | 46,028 | 12,940,312 | ||||||
Kroger Co. (The) | 216,079 | 6,078,302 | ||||||
Sysco Corp. | 76,777 | 5,117,187 | ||||||
Walgreens Boots Alliance Inc. | 79,734 | 3,648,628 | ||||||
27,784,429 | ||||||||
Food Products — 1.7% | ||||||||
Bunge Ltd. | 148,875 | 6,989,681 | ||||||
Campbell Soup Co. | 87,807 | 3,961,852 | ||||||
Conagra Brands Inc. | 125,162 | 3,340,574 | ||||||
General Mills Inc. | 188,617 | 9,242,233 | ||||||
Hershey Co. (The) | 23,991 | 3,454,464 | ||||||
Hormel Foods Corp. | 103,246 | 4,295,034 | ||||||
Ingredion Inc. | 42,035 | 3,501,515 | ||||||
Kellogg Co. | 178,356 | 10,785,187 | ||||||
Lamb Weston Holdings Inc. | 42,749 | 3,714,461 | ||||||
McCormick & Co. Inc./MD, NVS | 30,017 | 4,388,185 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Mondelez International Inc., Class A | 67,352 | $ | 3,556,186 | |||||
57,229,372 | ||||||||
Health Care Equipment & Supplies — 2.9% | ||||||||
Abbott Laboratories | 187,315 | 14,428,875 | ||||||
ABIOMED Inc.(a)(c) | 22,640 | 3,401,886 | ||||||
Align Technology Inc.(a) | 14,218 | 3,104,500 | ||||||
Becton Dickinson and Co. | 36,831 | 8,759,148 | ||||||
Cooper Companies Inc. (The). | 10,785 | 3,500,487 | ||||||
Danaher Corp. | 23,484 | 3,395,317 | ||||||
Dentsply Sirona Inc. | 75,432 | 3,714,272 | ||||||
DexCom Inc.(a) | 15,264 | 4,212,864 | ||||||
Edwards Lifesciences Corp.(a) | 51,293 | 10,506,858 | ||||||
IDEXX Laboratories Inc.(a) | 35,656 | 9,074,809 | ||||||
Medtronic PLC | 1 13,152 | 11,391,012 | ||||||
ResMed Inc. | 67,862 | 10,787,344 | ||||||
Steris PLC | 25,729 | 4,081,134 | ||||||
West Pharmaceutical Services Inc. | 40,295 | 6,066,815 | ||||||
96,425,321 | ||||||||
Health Care Providers & Services — 3.0% | ||||||||
Anthem Inc. | 24,377 | 6,267,083 | ||||||
Cardinal Health Inc. | 104,701 | 5,457,016 | ||||||
Centene Corp.(a) | 64,007 | 3,393,651 | ||||||
Cigna Corp.(a) | 70,842 | 12,959,835 | ||||||
CVS Health Corp. | 187,305 | 11,084,710 | ||||||
HCA Healthcare Inc. | 41,985 | 5,332,515 | ||||||
Henry Schein Inc.(a) | 157,024 | 9,569,043 | ||||||
Humana Inc. | 16,564 | 5,295,180 | ||||||
Laboratory Corp. of America Holdings(a) | 20,679 | 3,633,093 | ||||||
Quest Diagnostics Inc. | 81,777 | 8,673,269 | ||||||
UnitedHealth Group Inc. | 109,720 | 27,974,211 | ||||||
99,639,606 | ||||||||
Health Care Technology — 0.1% | ||||||||
Cerner Corp. | 62,804 | 4,350,433 | ||||||
Hotels, Restaurants & Leisure — 1.3% | ||||||||
Chipotle Mexican Grill Inc.(a) | 4,152 | 3,211,904 | ||||||
Darden Restaurants Inc. | 32,015 | 3,121,463 | ||||||
McDonald's Corp. | 81,868 | 15,896,310 | ||||||
MGM Resorts International | 1 19,865 | 2,943,884 | ||||||
Starbucks Corp. | 156,587 | 12,281,118 | ||||||
Vail Resorts Inc. | 25,694 | 5,462,801 | ||||||
42,917,480 | ||||||||
Household Durables — 0.3% | ||||||||
Garmin Ltd. | 39,504 | 3,491,759 | ||||||
Mohawk Industries Inc.(a) | 29,171 | 3,534,067 | ||||||
Newell Brands Inc. | 191,664 | 2,957,375 | ||||||
9,983,201 | ||||||||
Household Products — 2.1% | ||||||||
Clorox Co. (The) | 37,929 | 6,046,641 | ||||||
Colgate-Palmolive Co. | 183,196 | 12,378,554 | ||||||
Kimberly-Clark Corp. | 92,610 | 12,149,506 | ||||||
Procter & Gamble Co. (The) | 368,066 | 41,676,113 | ||||||
72,250,814 | ||||||||
Industrial Conglomerates — 2.3% | ||||||||
3M Co. | 169,184 | 25,249,020 | ||||||
General Electric Co. | 1,238,485 | 13,474,717 | ||||||
Honeywell International Inc. | 147,621 | 23,939,697 | ||||||
Roper Technologies Inc. | 11,500 | 4,044,550 |
S c h e d u l e o f I n v e s t m e n t s | 23 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Industrial Conglomerates (continued) | ||||||||
Trane Technologies PLC | 79,547 | $ | 10,264,745 | |||||
76,972,729 | ||||||||
Insurance — 2.2% | ||||||||
Allstate Corp. (The) | 75,577 | 7,954,479 | ||||||
American International Group Inc. | 79,774 | 3,363,272 | ||||||
Arthur J Gallagher & Co. | 37,939 | 3,698,673 | ||||||
Chubb Ltd. | 52,806 | 7,658,454 | ||||||
Lincoln National Corp. | 63,782 | 2,895,065 | ||||||
Marsh & McLennan Companies Inc. | 131,332 | 13,732,074 | ||||||
Principal Financial Group Inc. | 69,447 | 3,082,752 | ||||||
Progressive Corp. (The) | 68,399 | 5,004,071 | ||||||
Prudential Financial Inc. | 130,765 | 9,866,219 | ||||||
Travelers Companies Inc. (The) | 103,514 | 12,402,013 | ||||||
Willis Towers Watson PLC | 18,460 | 3,493,555 | ||||||
73,150,627 | ||||||||
Interactive Media & Services — 5.1% | ||||||||
Alphabet Inc., Class A(a) | 35,512 | 47,559,446 | ||||||
Alphabet Inc., Class C, NVS(a) | 48,777 | 65,328,499 | ||||||
Facebook Inc., Class A(a) | 303,116 | 58,340,737 | ||||||
171,228,682 | ||||||||
Internet & Direct Marketing Retail — 3.3% | ||||||||
Amazon.com Inc.(a) | 51,803 | 97,583,901 | ||||||
Booking Holdings Inc.(a) | 4,015 | 6,808,075 | ||||||
eBay Inc. | 104,642 | 3,624,799 | ||||||
MercadoLibre Inc.(a) | 7,653 | 4,714,478 | ||||||
112,731,253 | ||||||||
IT Services — 5.5% | ||||||||
Accenture PLC, Class A | 172,796 | 31,205,230 | ||||||
Automatic Data Processing Inc. | 72,535 | 11,224,066 | ||||||
Cognizant Technology Solutions Corp., Class A | 70,033 | 4,267,111 | ||||||
Fiserv Inc.(a) | 39,773 | 4,349,575 | ||||||
International Business Machines Corp. | 172,722 | 22,479,768 | ||||||
Leidos Holdings Inc. | 48,009 | 4,928,124 | ||||||
Mastercard Inc., Class A. | 118,243 | 34,320,031 | ||||||
Okta Inc.(a) | 27,908 | 3,573,898 | ||||||
PayPal Holdings Inc.(a) | 147,543 | 15,933,168 | ||||||
Square Inc., Class A(a) | 46,704 | 3,891,844 | ||||||
Twilio Inc., Class A(a) | 34,425 | 3,877,632 | ||||||
Visa Inc., Class A | 222,714 | 40,480,497 | ||||||
Western Union Co. (The) | 169,302 | 3,790,672 | ||||||
184,321,616 | ||||||||
Leisure Products — 0.1% | ||||||||
Hasbro Inc. | 55,314 | 4,273,006 | ||||||
Life Sciences Tools & Services — 1.1% | ||||||||
Agilent Technologies Inc. | 150,853 | 11,626,241 | ||||||
IQVIA Holdings Inc.(a) | 29,543 | 4,120,953 | ||||||
Mettler-Toledo International Inc.(a) | 8,748 | 6,138,472 | ||||||
Thermo Fisher Scientific Inc. | 35,015 | 10,182,362 | ||||||
Waters Corp.(a) | 20,368 | 3,969,519 | ||||||
36,037,547 | ||||||||
Machinery — 1.9% | ||||||||
Caterpillar Inc. | 84,458 | 10,493,062 | ||||||
Cummins Inc. | 104,201 | 15,764,569 | ||||||
Deere & Co. | 49,410 | 7,731,677 | ||||||
Flowserve Corp. | 83,394 | 3,351,605 | ||||||
IDEX Corp. | 21,949 | 3,248,452 | ||||||
Illinois Tool Works Inc. | 42,829 | 7,185,850 | ||||||
Parker-Hannifin Corp. | 21,534 | 3,978,837 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Xylem Inc./NY | 150,995 | $ | 11,677,953 | |||||
63,432,005 | ||||||||
Media — 1.3% | ||||||||
Charter Communications Inc., Class A(a) | 12,987 | 6,404,799 | ||||||
Comcast Corp., Class A | 551,340 | 22,290,676 | ||||||
Discovery Inc., Class A(a)(c) | 126,644 | 3,254,751 | ||||||
Liberty Global PLC, Class C, NVS(a) | 206,795 | 3,844,319 | ||||||
Omnicom Group Inc. | 50,193 | 3,477,371 | ||||||
Sirius XM Holdings Inc.(c) | 530,169 | 3,361,271 | ||||||
42,633,187 | ||||||||
Metals & Mining — 0.2% | ||||||||
Newmont Corp. | 157,436 | 7,026,369 | ||||||
Multi-Utilities — 0.8% | ||||||||
Consolidated Edison Inc. | 137,446 | 10,833,494 | ||||||
Public Service Enterprise Group Inc. | 146,734 | 7,528,922 | ||||||
Sempra Energy | 62,407 | 8,723,250 | ||||||
27,085,666 | ||||||||
Multiline Retail — 0.4% | ||||||||
Nordstrom Inc. | 96,095 | 3,334,496 | ||||||
Target Corp. | 81,597 | 8,404,491 | ||||||
11,738,987 | ||||||||
Oil, Gas & Consumable Fuels — 3.1% | ||||||||
Cheniere Energy Inc.(a) | 69,476 | 3,563,424 | ||||||
Chevron Corp. | 239,775 | 22,380,598 | ||||||
ConocoPhillips | 321,951 | 15,588,867 | ||||||
Exxon Mobil Corp. | 481,715 | 24,779,420 | ||||||
Hess Corp. | 126,978 | 7,133,624 | ||||||
Kinder Morgan Inc./DE | 174,488 | 3,344,935 | ||||||
Marathon Oil Corp. | 372,010 | 3,080,243 | ||||||
Marathon Petroleum Corp. | 71,623 | 3,396,363 | ||||||
Occidental Petroleum Corp. | 92,761 | 3,036,995 | ||||||
ONEOK Inc. | 133,768 | 8,925,001 | ||||||
Phillips 66 | 60,527 | 4,531,051 | ||||||
Valero Energy Corp | 46,455 | 3,077,644 | ||||||
102,838,165 | ||||||||
Personal Products — 0.1% | ||||||||
Estee Lauder Companies Inc. (The), Class A | 18,205 | 3,342,438 | ||||||
Pharmaceuticals — 4.4% | ||||||||
Allergan PLC | 25,868 | 4,932,252 | ||||||
Bristol-Myers Squibb Co. | 351,719 | 20,772,524 | ||||||
Eli Lilly & Co. | 138,719 | 17,496,627 | ||||||
Jazz Pharmaceuticals PLC(a) | 28,053 | 3,214,313 | ||||||
Johnson & Johnson | 349,965 | 47,063,293 | ||||||
Merck & Co. Inc. | 362,441 | 27,748,483 | ||||||
Pfizer Inc. | 493,516 | 16,493,305 | ||||||
Zoetis Inc. | 82,573 | 11,001,201 | ||||||
148,721,998 | ||||||||
Professional Services — 0.6% | ||||||||
IHS Markit Ltd. | 196,922 | 14,028,723 | ||||||
Nielsen Holdings PLC | 176,760 | 3,218,800 | ||||||
Robert Half International Inc. | 76,248 | 3,843,662 | ||||||
21,091,185 | ||||||||
Real Estate Management & Development — 0.4% | ||||||||
CBRE Group Inc., Class A(a) | 167,403 | 9,398,004 | ||||||
Jones Lang LaSalle Inc. | 22,575 | 3,335,908 | ||||||
12,733,912 |
24 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Road & Rail — 1.2% | ||||||||
AMERCO. | 11,019 | $ | 3,553,738 | |||||
CSX Corp. | 125,846 | 8,865,851 | ||||||
Kansas City Southern | 42,262 | 6,368,038 | ||||||
Norfolk Southern Corp. | 46,778 | 8,529,968 | ||||||
Uber Technologies Inc.(a) | 94,470 | 3,199,699 | ||||||
Union Pacific Corp. | 63,613 | 10,165,993 | ||||||
40,683,287 | ||||||||
Semiconductors & Semiconductor Equipment — 4.0% | ||||||||
Advanced Micro Devices Inc.(a) | 114,275 | 5,197,227 | ||||||
Analog Devices Inc. | 32,484 | 3,542,380 | ||||||
Applied Materials Inc. | 184,312 | 10,712,213 | ||||||
Broadcom Inc. | 29,333 | 7,996,763 | ||||||
Intel Corp. | 585,627 | 32,514,011 | ||||||
Lam Research Corp. | 22,053 | 6,471,012 | ||||||
Marvell Technology Group Ltd. | 154,644 | 3,293,917 | ||||||
Maxim Integrated Products Inc. | 61,491 | 3,420,129 | ||||||
Micron Technology Inc.(a) | 100,111 | 5,261,834 | ||||||
NVIDIA Corp. | 90,966 | 24,567,188 | ||||||
QUALCOMM Inc. | 93,976 | 7,358,321 | ||||||
Texas Instruments Inc. | 189,301 | 21,606,816 | ||||||
Xilinx Inc. | 42,979 | 3,588,317 | ||||||
135,530,128 | ||||||||
Software — 8.9% | ||||||||
Adobe Inc.(a) | 82,289 | 28,399,580 | ||||||
Autodesk Inc.(a) | 41,589 | 7,938,508 | ||||||
Cadence Design Systems Inc.(a) | 54,930 | 3,633,070 | ||||||
Citrix Systems Inc. | 33,936 | 3,508,643 | ||||||
Intuit Inc. | 47,932 | 12,742,722 | ||||||
Microsoft Corp. | 1,069,825 | 173,322,348 | ||||||
NortonLifeLock Inc. | 184,953 | 3,519,656 | ||||||
Oracle Corp. | 216,021 | 10,684,399 | ||||||
Paycom Software Inc.(a) | 12,111 | 3,423,174 | ||||||
PTC Inc.(a) | 44,007 | 3,324,729 | ||||||
salesforce.com Inc.(a) | 173,598 | 29,581,099 | ||||||
ServiceNow Inc.(a) | 25,748 | 8,396,166 | ||||||
Splunk Inc.(a) | 26,206 | 3,860,930 | ||||||
VMware Inc., Class A(a) | 23,927 | 2,883,682 | ||||||
Workday Inc., Class A(a) | 23,997 | 4,157,480 | ||||||
299,376,186 | ||||||||
Specialty Retail — 2.4% | ||||||||
Best Buy Co. Inc. | 123,353 | 9,331,655 | ||||||
Gap Inc. (The) | 222,327 | 3,185,946 | ||||||
Home Depot Inc. (The) | 185,333 | 40,372,941 | ||||||
Lowe's Companies Inc. | 104,871 | 11,176,103 | ||||||
Tiffany & Co. | 68,216 | 9,112,975 |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
TJX Companies Inc. (The) | 91,393 | $ | 5,465,301 | |||||
Tractor Supply Co. | 39,220 | 3,471,362 | ||||||
82,116,283 | ||||||||
Technology Hardware, Storage & Peripherals — 5.1% | ||||||||
Apple Inc. | 579,450 | 158,398,452 | ||||||
Hewlett Packard Enterprise Co. | 456,262 | 5,835,591 | ||||||
HP Inc. | 256,976 | 5,342,531 | ||||||
Xerox Holdings Corp.(a) | 103,039 | 3,317,856 | ||||||
172,894,430 | ||||||||
Textiles, Apparel & Luxury Goods — 0.8% | ||||||||
Hanesbrands Inc. | 264,295 | 3,499,266 | ||||||
NIKE Inc., Class B | 154,270 | 13,788,653 | ||||||
PVH Corp. | 44,485 | 3,296,783 | ||||||
VF Corp. | 79,174 | 5,700,528 | ||||||
26,285,230 | ||||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 100,262 | 3,430,966 | ||||||
WW Grainger Inc. | 15,151 | 4,205,008 | ||||||
7,635,974 | ||||||||
Total Common Stocks — 99.6% | ||||||||
(Cost: $3,554,949,076). | 3,361,998,055 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.5% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | ||||||||
1.74%(b)(d)(e) | 7,558,229 | 7,563,520 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, | ||||||||
1.52%(b)(d) | 8,548,000 | 8,548,000 | ||||||
16,111,520 | ||||||||
Total Short-Term Investments — 0.5% | ||||||||
(Cost: $16,109,806). | 16,111,520 | |||||||
Total Investments in Securities — 100.1% | ||||||||
(Cost: $3,571,058,882). | 3,378,109,575 | |||||||
Other Assets, Less Liabilities — (0.1)%. | (2,542,543 | ) | ||||||
Net Assets — 100.0% | $ | 3,375,567,032 |
(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 cash collateral received from loaned securities. |
S c h e d u l e o f I n v e s t m e n t s | 25 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 1,160,849 | 6,397,380 | (b) | — | 7,558,229 | $ | 7,563,520 | $ | 17,020 | (c) | $ | 623 | $ | 1,605 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 775,000 | 7,773,000 | (b) | — | 8,548,000 | 8,548,000 | 27,847 | — | — | |||||||||||||||||||||||
BlackRock Inc. | 3,162 | 34,147 | (1,982 | ) | 35,327 | 16,356,754 | 58,997 | 27,200 | (1,001,220 | ) | ||||||||||||||||||||||
$ | 32,468,274 | $ | 103,864 | $ | 27,823 | $ | (999,615 | ) |
(a) Includes realized capital gain distributions from an affiliated fund, if any.
(b) Net of purchases and sales.
(c) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
S&P 500 E-Mini Index | 74 | 03/20/20 | $ | 10,919 | $ | (1,154,206 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 1,154,206 |
(a) Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 19,359 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (1,154,206 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 3,639,690 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
26 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 3,361,998,055 | $ | — | $ | — | $ | 3,361,998,055 | ||||||||
Money Market Funds | 16,111,520 | — | — | 16,111,520 | ||||||||||||
$ | 3,378,109,575 | $ | — | $ | — | $ | 3,378,109,575 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (1,154,206 | ) | $ | — | $ | — | $ | (1,154,206 | ) |
(a) Shown at the unrealized appreciation (depreciation) on the contracts.
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 27 |
Schedule of Investments (unaudited) | iShares® ESG MSCI USA Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.3% | ||||||||
Arconic Inc. | 54,795 | $ | 1,608,233 | |||||
TransDigm Group Inc. | 6,655 | 3,712,226 | ||||||
5,320,459 | ||||||||
Air Freight & Logistics — 0.7% | ||||||||
CH Robinson Worldwide Inc. | 18,692 | 1,287,879 | ||||||
Expeditors International of Washington Inc. | 23,610 | 1,662,616 | ||||||
United Parcel Service Inc., Class B | 97,196 | 8,795,266 | ||||||
11,745,761 | ||||||||
Airlines — 0.1% | ||||||||
Delta Air Lines Inc. | 22,453 | 1,035,757 | ||||||
Southwest Airlines Co. | 18,560 | 857,286 | ||||||
1,893,043 | ||||||||
Auto Components — 0.2% | ||||||||
Aptiv PLC | 35,370 | 2,762,751 | ||||||
BorgWarner Inc. | 28,550 | 902,180 | ||||||
3,664,931 | ||||||||
Automobiles — 0.7% | ||||||||
Harley-Davidson Inc. | 21,632 | 659,127 | ||||||
Tesla Inc.(a) | 18,753 | 12,526,817 | ||||||
13,185,944 | ||||||||
Banks — 2.6% | ||||||||
Citizens Financial Group Inc. | 61,724 | 1,956,034 | ||||||
Comerica Inc. | 20,629 | 1,085,911 | ||||||
East West Bancorp. Inc. | 20,095 | 778,480 | ||||||
Fifth Third Bancorp. | 100,300 | 2,447,320 | ||||||
First Republic Bank/CA | 23,327 | 2,345,996 | ||||||
Huntington Bancshares Inc./OH | 143,266 | 1,757,874 | ||||||
KeyCorp | 138,488 | 2,264,279 | ||||||
M&T Bank Corp. | 17,523 | 2,459,879 | ||||||
People's United Financial Inc. | 61,306 | 857,671 | ||||||
PNC Financial Services Group Inc. (The) | 60,791 | 7,683,982 | ||||||
Regions Financial Corp. | 137,733 | 1,862,150 | ||||||
Signature Bank/New York NY | 7,635 | 955,138 | ||||||
SVB Financial Group(a)(b) | 7,108 | 1,479,601 | ||||||
Truist Financial Corp. | 186,027 | 8,583,286 | ||||||
U.S. Bancorp. | 206,649 | 9,596,780 | ||||||
Zions Bancorp. N.A. | 24,455 | 976,977 | ||||||
47,091,358 | ||||||||
Beverages — 3.1% | ||||||||
Coca-Cola Co. (The) | 564,548 | 30,197,672 | ||||||
PepsiCo Inc. | 193,432 | 25,538,827 | ||||||
55,736,499 | ||||||||
Biotechnology — 3.6% | ||||||||
AbbVie Inc. | 205,125 | 17,581,264 | ||||||
Amgen Inc. | 82,783 | 16,534,249 | ||||||
Biogen Inc.(a) | 25,046 | 7,723,936 | ||||||
BioMarin Pharmaceutical Inc.(a) | 24,785 | 2,239,820 | ||||||
Gilead Sciences Inc. | 175,494 | 12,172,264 | ||||||
Vertex Pharmaceuticals Inc.(a) | 35,667 | 7,990,478 | ||||||
64,242,011 | ||||||||
Building Products — 0.6% | ||||||||
Allegion PLC | 12,904 | 1,483,831 | ||||||
Fortune Brands Home & Security Inc. | 19,355 | 1,195,171 | ||||||
Johnson Controls International PLC | 107,072 | 3,915,623 | ||||||
Lennox International Inc. | 4,814 | 1,098,218 | ||||||
Masco Corp. | 39,943 | 1,650,445 |
Security | Shares | Value | ||||||
Building Products (continued) | ||||||||
Owens Corning . | 15,069 | $ | 851,248 | |||||
10,194,536 | ||||||||
Capital Markets — 4.2% | ||||||||
Ameriprise Financial Inc. | 18,066 | 2,552,726 | ||||||
Bank of New York Mellon Corp. (The) | 117,132 | 4,673,567 | ||||||
BlackRock Inc.(c) | 16,059 | 7,435,478 | ||||||
Cboe Global Markets Inc. | 15,427 | 1,758,678 | ||||||
Charles Schwab Corp. (The) | 160,146 | 6,525,949 | ||||||
CME Group Inc. | 49,704 | 9,882,149 | ||||||
E*TRADE Financial Corp. | 31,378 | 1,436,485 | ||||||
FactSet Research Systems Inc. | 5,318 | 1,414,535 | ||||||
Franklin Resources Inc. | 41,717 | 907,762 | ||||||
Intercontinental Exchange Inc. | 77,354 | 6,901,524 | ||||||
Invesco Ltd. | 55,116 | 793,670 | ||||||
KKR & Co. Inc., Class A, NVS | 68,711 | 1,965,135 | ||||||
Moody's Corp. | 23,512 | 5,643,585 | ||||||
Nasdaq Inc. | 15,946 | 1,635,262 | ||||||
Northern Trust Corp. | 28,195 | 2,474,393 | ||||||
Raymond James Financial Inc. | 17,255 | 1,443,036 | ||||||
S&P Global Inc. | 34,003 | 9,041,738 | ||||||
State Street Corp. | 51,433 | 3,503,102 | ||||||
T Rowe Price Group Inc. | 32,525 | 3,838,275 | ||||||
TD Ameritrade Holding Corp. | 37,846 | 1,598,236 | ||||||
75,425,285 | ||||||||
Chemicals — 1.9% | ||||||||
Axalta Coating Systems Ltd.(a) | 28,990 | 722,431 | ||||||
Celanese Corp. | 17,095 | 1,602,485 | ||||||
Ecolab Inc. | 35,975 | 6,491,689 | ||||||
International Flavors & Fragrances Inc. | 14,013 | 1,678,477 | ||||||
Linde PLC | 74,615 | 14,252,211 | ||||||
Mosaic Co. (The) | 50,694 | 863,319 | ||||||
PPG Industries Inc. | 32,621 | 3,407,263 | ||||||
Sherwin-Williams Co. (The) | 11,516 | 5,950,893 | ||||||
34,968,768 | ||||||||
Commercial Services & Supplies — 0.5% | ||||||||
Copart Inc.(a)(b) | 29,010 | 2,450,765 | ||||||
Waste Management Inc. | 58,841 | 6,520,171 | ||||||
8,970,936 | ||||||||
Communications Equipment — 0.2% | ||||||||
Motorola Solutions Inc. | 23,750 | 3,934,900 | ||||||
Consumer Finance — 0.8% | ||||||||
Ally Financial Inc. | 53,909 | 1,351,499 | ||||||
American Express Co. | 96,502 | 10,608,465 | ||||||
Discover Financial Services | 43,926 | 2,880,667 | ||||||
14,840,631 | ||||||||
Containers & Packaging — 0.3% | ||||||||
Avery Dennison Corp. | 11,660 | 1,334,953 | ||||||
Ball Corp. | 43,551 | 3,068,604 | ||||||
International Paper Co. | 51,514 | 1,903,957 | ||||||
6,307,514 | ||||||||
Distributors — 0.2% | ||||||||
Genuine Parts Co. | 20,165 | 1,759,195 | ||||||
LKQ Corp.(a) | 42,540 | 1,258,333 | ||||||
3,017,528 | ||||||||
Diversified Financial Services — 0.1% | ||||||||
Equitable Holdings Inc. | 58,163 | 1,244,688 |
28 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Financial Services (continued) | ||||||||
Voya Financial Inc. | 19,380 | $ | 1,020,163 | |||||
2,264,851 | ||||||||
Diversified Telecommunication Services — 1.8% | ||||||||
CenturyLink Inc. | 135,724 | 1,638,189 | ||||||
Verizon Communications Inc. | 573,666 | 31,069,750 | ||||||
32,707,939 | ||||||||
Electric Utilities — 1.3% | ||||||||
Alliant Energy Corp. | 33,907 | 1,767,233 | ||||||
Edison International | 49,737 | 3,341,829 | ||||||
Eversource Energy | 44,903 | 3,882,313 | ||||||
Pinnacle West Capital Corp. | 15,504 | 1,387,453 | ||||||
Southern Co. (The) | 145,461 | 8,780,026 | ||||||
Xcel Energy Inc. | 72,703 | 4,530,851 | ||||||
23,689,705 | ||||||||
Electrical Equipment — 0.5% | ||||||||
Acuity Brands Inc. | 5,510 | 566,759 | ||||||
Eaton Corp. PLC | 57,967 | 5,258,766 | ||||||
Rockwell Automation Inc. | 16,145 | 2,962,607 | ||||||
Sensata Technologies Holding PLC(a) | 22,305 | 910,044 | ||||||
9,698,176 | ||||||||
Electronic Equipment, Instruments & Components — 0.4% | ||||||||
Keysight Technologies Inc.(a) | 25,916 | 2,455,800 | ||||||
TE Connectivity Ltd. | 46,383 | 3,843,759 | ||||||
Trimble Inc.(a) | 34,810 | 1,374,299 | ||||||
7,673,858 | ||||||||
Energy Equipment & Services — 0.4% | ||||||||
Baker Hughes Co. | 90,079 | 1,449,371 | ||||||
National Oilwell Varco Inc. | 53,377 | 998,684 | ||||||
Schlumberger Ltd. | 192,023 | 5,201,903 | ||||||
7,649,958 | ||||||||
Entertainment — 1.9% | ||||||||
Electronic Arts Inc.(a) | 40,697 | 4,125,455 | ||||||
Walt Disney Co. (The) | 250,003 | 29,412,853 | ||||||
33,538,308 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 3.1% | ||||||||
Alexandria Real Estate Equities Inc. | 15,974 | 2,426,131 | ||||||
American Tower Corp. | 61,439 | 13,934,365 | ||||||
Boston Properties Inc. | 21,346 | 2,752,353 | ||||||
Camden Property Trust | 13,369 | 1,416,847 | ||||||
Duke Realty Corp. | 50,969 | 1,654,963 | ||||||
Equinix Inc. | 11,830 | 6,776,224 | ||||||
Federal Realty Investment Trust | 10,371 | 1,206,562 | ||||||
Healthpeak Properties Inc. | 68,648 | 2,172,023 | ||||||
Host Hotels & Resorts Inc. | 100,761 | 1,459,019 | ||||||
Iron Mountain Inc. | 39,692 | 1,207,034 | ||||||
Prologis Inc. | 102,266 | 8,618,979 | ||||||
SBA Communications Corp. | 15,600 | 4,135,404 | ||||||
UDR Inc. | 40,473 | 1,820,476 | ||||||
Welltower Inc. | 56,272 | 4,210,271 | ||||||
Weyerhaeuser Co. | 102,836 | 2,671,679 | ||||||
56,462,330 | ||||||||
Food Products — 0.7% | ||||||||
Bunge Ltd. | 19,563 | 918,483 | ||||||
Campbell Soup Co. | 22,907 | 1,033,564 | ||||||
General Mills Inc. | 83,832 | 4,107,768 | ||||||
Hormel Foods Corp. | 40,570 | 1,687,712 | ||||||
Kellogg Co. | 35,275 | 2,133,079 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
McCormick & Co. Inc./MD, NVS | 17,132 | $ | 2,504,527 | |||||
12,385,133 | ||||||||
Health Care Equipment & Supplies — 1.9% | ||||||||
Align Technology Inc.(a) | 10,472 | 2,286,561 | ||||||
Becton Dickinson and Co. | 37,519 | 8,922,769 | ||||||
Dentsply Sirona Inc. | 31,030 | 1,527,917 | ||||||
DexCom Inc.(a)(b) | 12,693 | 3,503,268 | ||||||
Edwards Lifesciences Corp.(a) | 28,923 | 5,924,587 | ||||||
Hologic Inc.(a) | 36,949 | 1,741,037 | ||||||
IDEXX Laboratories Inc.(a) | 11,881 | 3,023,833 | ||||||
ResMed Inc. | 19,847 | 3,154,879 | ||||||
Steris PLC | 11,721 | 1,859,185 | ||||||
Varian Medical Systems Inc.(a) | 12,583 | 1,547,332 | ||||||
33,491,368 | ||||||||
Health Care Providers & Services — 1.9% | ||||||||
AmerisourceBergen Corp. | 21,568 | 1,818,614 | ||||||
Cardinal Health Inc. | 41,150 | 2,144,738 | ||||||
Centene Corp.(a) | 80,574 | 4,272,033 | ||||||
Cigna Corp.(a) | 52,127 | 9,536,113 | ||||||
HCA Healthcare Inc. | 37,652 | 4,782,181 | ||||||
Henry Schein Inc.(a) | 20,453 | 1,246,406 | ||||||
Humana Inc. | 18,377 | 5,874,759 | ||||||
Laboratory Corp. of America Holdings(a) | 13,475 | 2,367,423 | ||||||
Quest Diagnostics Inc. | 18,637 | 1,976,640 | ||||||
34,018,907 | ||||||||
Health Care Technology — 0.2% | ||||||||
Cerner Corp. | 43,946 | 3,044,139 | ||||||
Hotels, Restaurants & Leisure — 2.5% | ||||||||
Aramark . | 34,133 | 1,185,780 | ||||||
Darden Restaurants Inc. | 16,951 | 1,652,723 | ||||||
Domino's Pizza Inc. | 5,432 | 1,843,947 | ||||||
Hilton Worldwide Holdings Inc. | 37,615 | 3,656,178 | ||||||
McDonald's Corp. | 104,843 | 20,357,365 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) | 29,820 | 1,111,093 | ||||||
Royal Caribbean Cruises Ltd. | 24,578 | 1,976,317 | ||||||
Starbucks Corp. | 163,863 | 12,851,775 | ||||||
Vail Resorts Inc. | 5,559 | 1,181,899 | ||||||
45,817,077 | ||||||||
Household Durables — 0.4% | ||||||||
Garmin Ltd. | 18,366 | 1,623,371 | ||||||
Mohawk Industries Inc.(a) | 8,461 | 1,025,050 | ||||||
Newell Brands Inc. | 55,618 | 858,186 | ||||||
NVR Inc.(a) | 500 | 1,833,590 | ||||||
Whirlpool Corp. | 8,810 | 1,126,446 | ||||||
6,466,643 | ||||||||
Household Products — 3.1% | ||||||||
Clorox Co. (The) | 17,359 | 2,767,372 | ||||||
Colgate-Palmolive Co. | 112,937 | 7,631,153 | ||||||
Kimberly-Clark Corp. | 47,504 | 6,232,050 | ||||||
Procter & Gamble Co. (The) | 345,932 | 39,169,880 | ||||||
55,800,455 | ||||||||
Independent Power and Renewable Electricity Producers — 0.1% | ||||||||
AES Corp./VA. | 91,790 | 1,535,647 | ||||||
Industrial Conglomerates — 1.2% | ||||||||
3M Co. | 79,760 | 11,903,382 | ||||||
Roper Technologies Inc. | 14,438 | 5,077,845 |
S c h e d u l e o f I n v e s t m e n t s | 29 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Industrial Conglomerates (continued) | ||||||||
Trane Technologies PLC | 33,349 | $ | 4,303,355 | |||||
21,284,582 | ||||||||
Insurance — 3.7% | ||||||||
Allstate Corp. (The) | 45,432 | 4,781,718 | ||||||
American Financial Group Inc./OH | 10,556 | 975,585 | ||||||
American International Group Inc. | 120,671 | 5,087,489 | ||||||
Aon PLC | 32,562 | 6,772,896 | ||||||
Arch Capital Group Ltd.(a) | 55,894 | 2,259,794 | ||||||
Arthur J Gallagher & Co. | 25,687 | 2,504,226 | ||||||
Assurant Inc. | 8,435 | 1,017,177 | ||||||
Chubb Ltd. | 62,929 | 9,126,593 | ||||||
Erie Indemnity Co., Class A, NVS | 3,506 | 501,078 | ||||||
Hartford Financial Services Group Inc. (The) | 49,920 | 2,493,504 | ||||||
Lincoln National Corp. | 27,689 | 1,256,804 | ||||||
Loews Corp.(b) | 37,566 | 1,714,137 | ||||||
Marsh & McLennan Companies Inc. | 69,907 | 7,309,476 | ||||||
Principal Financial Group Inc. | 38,475 | 1,707,905 | ||||||
Progressive Corp. (The) | 81,090 | 5,932,544 | ||||||
Prudential Financial Inc. | 55,499 | 4,187,400 | ||||||
Reinsurance Group of America Inc. | 8,650 | 1,055,559 | ||||||
Travelers Companies Inc. (The) | 35,954 | 4,307,649 | ||||||
Willis Towers Watson PLC | 17,818 | 3,372,056 | ||||||
66,363,590 | ||||||||
Interactive Media & Services — 6.3% | ||||||||
Alphabet Inc., Class A(a) | 41,553 | 55,649,855 | ||||||
Alphabet Inc., Class C, NVS(a) | 42,896 | 57,451,900 | ||||||
TripAdvisor Inc. | 1,029 | 24,130 | ||||||
113,125,885 | ||||||||
Internet & Direct Marketing Retail — 0.9% | ||||||||
Booking Holdings Inc.(a) | 5,801 | 9,836,524 | ||||||
Expedia Group Inc. | 19,351 | 1,908,396 | ||||||
MercadoLibre Inc.(a)(b) | 6,179 | 3,806,449 | ||||||
15,551,369 | ||||||||
IT Services — 6.6% | ||||||||
Accenture PLC, Class A | 88,100 | 15,909,979 | ||||||
Cognizant Technology Solutions Corp., Class A | 76,251 | 4,645,973 | ||||||
International Business Machines Corp. | 122,845 | 15,988,277 | ||||||
Jack Henry & Associates Inc. | 10,624 | 1,612,086 | ||||||
Mastercard Inc., Class A | 124,618 | 36,170,374 | ||||||
Visa Inc., Class A | 237,601 | 43,186,358 | ||||||
Western Union Co. (The) | 58,544 | 1,310,800 | ||||||
118,823,847 | ||||||||
Leisure Products — 0.1% | ||||||||
Hasbro Inc. | 17,818 | 1,376,441 | ||||||
Life Sciences Tools & Services — 0.6% | ||||||||
Agilent Technologies Inc. | 42,707 | 3,291,428 | ||||||
IQVIA Holdings Inc.(a) | 23,096 | 3,221,661 | ||||||
Mettler-Toledo International Inc.(a) | 3,401 | 2,386,482 | ||||||
Waters Corp.(a) | 9,208 | 1,794,547 | ||||||
10,694,118 | ||||||||
Machinery — 2.5% | ||||||||
Caterpillar Inc. | 76,690 | 9,527,966 | ||||||
Cummins Inc. | 20,699 | 3,131,552 | ||||||
Deere & Co. | 41,485 | 6,491,573 | ||||||
Dover Corp. | 20,080 | 2,063,019 | ||||||
Flowserve Corp. | 18,106 | 727,680 | ||||||
IDEX Corp. | 10,482 | 1,551,336 | ||||||
Illinois Tool Works Inc. | 44,647 | 7,490,874 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
PACCAR Inc. | 47,821 | $ | 3,199,225 | |||||
Parker-Hannifin Corp. | 17,746 | 3,278,929 | ||||||
Pentair PLC | 22,047 | 868,431 | ||||||
Snap-on Inc. | 7,623 | 1,103,429 | ||||||
Stanley Black & Decker Inc. | 20,943 | 3,009,509 | ||||||
WABCO Holdings Inc.(a) | 7,072 | 955,427 | ||||||
Xylem Inc./NY | 24,907 | 1,926,307 | ||||||
45,325,257 | ||||||||
Media — 0.4% | ||||||||
Discovery Inc., Class A(a)(b) | 21,805 | 560,389 | ||||||
Discovery Inc., Class C, NVS(a)(b) | 51,569 | 1,294,382 | ||||||
Liberty Broadband Corp., Class C, NVS(a) | 14,763 | 1,858,514 | ||||||
Liberty Global PLC, Class A(a)(b) | 22,511 | 439,415 | ||||||
Liberty Global PLC, Class C, NVS(a) | 57,524 | 1,069,371 | ||||||
Omnicom Group Inc. | 30,022 | 2,079,924 | ||||||
7,301,995 | ||||||||
Metals & Mining — 0.4% | ||||||||
Newmont Corp. | 113,719 | 5,075,279 | ||||||
Nucor Corp. | 41,843 | 1,730,208 | ||||||
6,805,487 | ||||||||
Multi-Utilities — 1.8% | ||||||||
CMS Energy Corp. | 39,165 | 2,366,349 | ||||||
Consolidated Edison Inc. | 46,110 | 3,634,390 | ||||||
Dominion Energy Inc. | 114,161 | 8,925,107 | ||||||
DTE Energy Co. | 26,614 | 2,971,986 | ||||||
NiSource Inc. | 51,606 | 1,394,394 | ||||||
Public Service Enterprise Group Inc. | 69,788 | 3,580,822 | ||||||
Sempra Energy | 39,086 | 5,463,441 | ||||||
WEC Energy Group Inc. | 43,555 | 4,021,433 | ||||||
32,357,922 | ||||||||
Multiline Retail — 0.1% | ||||||||
Kohl's Corp. | 22,362 | 875,472 | ||||||
Nordstrom Inc. | 14,982 | 519,876 | ||||||
1,395,348 | ||||||||
Oil, Gas & Consumable Fuels — 2.7% | ||||||||
Apache Corp. | 52,002 | 1,295,890 | ||||||
Cheniere Energy Inc.(a) | 31,958 | 1,639,126 | ||||||
ConocoPhillips | 153,266 | 7,421,140 | ||||||
Devon Energy Corp. | 55,790 | 906,029 | ||||||
Hess Corp. | 37,816 | 2,124,503 | ||||||
HollyFrontier Corp. | 21,582 | 726,882 | ||||||
Kinder Morgan Inc./DE | 282,749 | 5,420,298 | ||||||
Marathon Oil Corp. | 111,004 | 919,113 | ||||||
Marathon Petroleum Corp. | 90,886 | 4,309,814 | ||||||
Noble Energy Inc. | 66,054 | 1,045,635 | ||||||
Occidental Petroleum Corp. | 123,489 | 4,043,030 | ||||||
ONEOK Inc. | 57,008 | 3,803,574 | ||||||
Phillips 66 | 61,917 | 4,635,107 | ||||||
Pioneer Natural Resources Co. | 23,068 | 2,832,289 | ||||||
Targa Resources Corp. | 32,165 | 1,042,146 | ||||||
Valero Energy Corp. | 57,197 | 3,789,301 | ||||||
Williams Companies Inc. (The) | 167,323 | 3,187,503 | ||||||
49,141,380 | ||||||||
Personal Products — 0.3% | ||||||||
Estee Lauder Companies Inc. (The), Class A | 30,866 | 5,666,998 | ||||||
Pharmaceuticals — 5.9% | ||||||||
Bristol-Myers Squibb Co. | 325,158 | 19,203,831 | ||||||
Jazz Pharmaceuticals PLC(a) | 7,810 | 894,870 |
30 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Leaders ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Johnson & Johnson | 365,075 | $ | 49,095,286 | |||||
Merck & Co. Inc. | 353,463 | 27,061,127 | ||||||
Perrigo Co. PLC | 17,853 | 904,969 | ||||||
Zoetis Inc. | 65,929 | 8,783,721 | ||||||
105,943,804 | ||||||||
Professional Services — 0.3% | ||||||||
IHS Markit Ltd. | 52,611 | 3,748,008 | ||||||
ManpowerGroup Inc. | 8,264 | 627,568 | ||||||
Nielsen Holdings PLC | 49,199 | 895,914 | ||||||
Robert Half International Inc. | 16,218 | 817,549 | ||||||
6,089,039 | ||||||||
Real Estate Management & Development — 0.2% | ||||||||
CBRE Group Inc., Class A(a) | 44,094 | 2,475,437 | ||||||
Jones Lang LaSalle Inc. | 7,106 | 1,050,054 | ||||||
3,525,491 | ||||||||
Road & Rail — 1.8% | ||||||||
AMERCO | 1,234 | 397,977 | ||||||
CSX Corp. | 102,534 | 7,223,520 | ||||||
Kansas City Southern | 13,797 | 2,078,932 | ||||||
Norfolk Southern Corp. | 36,353 | 6,628,970 | ||||||
Union Pacific Corp. | 96,321 | 15,393,059 | ||||||
31,722,458 | ||||||||
Semiconductors & Semiconductor Equipment — 4.7% | ||||||||
Applied Materials Inc. | 128,123 | 7,446,509 | ||||||
Intel Corp. | 603,611 | 33,512,483 | ||||||
Lam Research Corp. | 20,126 | 5,905,572 | ||||||
Marvell Technology Group Ltd. | 87,878 | 1,871,801 | ||||||
NVIDIA Corp. | 80,636 | 21,777,364 | ||||||
Texas Instruments Inc. | 129,649 | 14,798,137 | ||||||
85,311,866 | ||||||||
Software — 12.6% | ||||||||
Adobe Inc.(a) | 67,142 | 23,172,047 | ||||||
Autodesk Inc.(a) | 30,464 | 5,814,968 | ||||||
Cadence Design Systems Inc.(a) | 38,685 | 2,558,626 | ||||||
Citrix Systems Inc. | 18,070 | 1,868,257 | ||||||
Intuit Inc. | 36,111 | 9,600,109 | ||||||
Microsoft Corp. | 1,005,275 | 162,864,603 | ||||||
salesforce.com Inc.(a) | 115,556 | 19,690,743 | ||||||
VMware Inc., Class A(a) | 11,304 | 1,362,358 | ||||||
226,931,711 | ||||||||
Specialty Retail — 4.0% | ||||||||
Advance Auto Parts Inc. | 9,849 | 1,309,720 | ||||||
Best Buy Co. Inc. | 33,186 | 2,510,521 | ||||||
CarMax Inc.(a) | 22,862 | 1,996,081 | ||||||
Gap Inc. (The) | 8,932 | 127,996 | ||||||
Home Depot Inc. (The) | 151,325 | 32,964,638 | ||||||
Lowe's Companies Inc. | 107,120 | 11,415,778 | ||||||
Ross Stores Inc. | 50,332 | 5,475,115 | ||||||
Tiffany & Co. | 15,020 | 2,006,522 | ||||||
TJX Companies Inc. (The) | 167,684 | 10,027,503 | ||||||
Tractor Supply Co. | 16,473 | 1,458,025 |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
Ulta Salon Cosmetics & Fragrance Inc.(a) | 7,722 | $ | 1,985,249 | |||||
71,277,148 | ||||||||
Technology Hardware, Storage & Peripherals — 0.4% | ||||||||
Dell Technologies Inc., Class C(a) | 22,467 | 909,015 | ||||||
Hewlett Packard Enterprise Co. | 180,223 | 2,305,052 | ||||||
HP Inc. | 204,702 | 4,255,755 | ||||||
7,469,822 | ||||||||
Textiles, Apparel & Luxury Goods — 1.4% | ||||||||
Capri Holdings Ltd.(a) | 20,948 | 540,877 | ||||||
Hanesbrands Inc. | 49,915 | 660,875 | ||||||
Lululemon Athletica Inc.(a) | 15,287 | 3,323,547 | ||||||
NIKE Inc., Class B . | 172,825 | 15,447,098 | ||||||
PVH Corp. | 10,345 | 766,668 | ||||||
Tapestry Inc. | 39,599 | 928,596 | ||||||
Under Armour Inc., Class A(a) | 25,961 | 368,387 | ||||||
Under Armour Inc., Class C, NVS(a) | 26,842 | 334,988 | ||||||
VF Corp. | 46,856 | 3,373,632 | ||||||
25,744,668 | ||||||||
Trading Companies & Distributors — 0.3% | ||||||||
Fastenal Co. | 79,163 | 2,708,958 | ||||||
United Rentals Inc.(a) | 10,642 | 1,409,852 | ||||||
WW Grainger Inc. | 6,397 | 1,775,423 | ||||||
5,894,233 | ||||||||
Water Utilities — 0.2% | ||||||||
American Water Works Co. Inc. | 24,942 | 3,084,328 | ||||||
Total Common Stocks — 99.7% | ||||||||
(Cost: $1,745,037,012) | 1,794,993,385 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.5% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e) | 3,941,297 | 3,944,056 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(c)(d) | 3,953,000 | 3,953,000 | ||||||
7,897,056 | ||||||||
Total Short-Term Investments — 0.5% | ||||||||
(Cost: $7,895,880) | 7,897,056 | |||||||
Total Investments in Securities — 100.2% | ||||||||
(Cost: $1,752,932,892) | 1,802,890,441 | |||||||
Other Assets, Less Liabilities — (0.2)% | . | (3,081,553 | ) | |||||
Net Assets — 100.0% | $ | 1,799,808,888 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Sc h e d u l e o f I n v e s t m e n t s | 31 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Leaders ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Change in | ||||||||||||||||||||||||||||||||
Shares | Shares | Net | Unrealized | |||||||||||||||||||||||||||||
Held at | Shares | Shares | Held at | Value at | Realized | Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/19 | Purchased | Sold | 02/29/20 | 02/29/20 | Income | Gain (Loss)(a) | (Depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 484,177 | 3,457,120 | (b) | — | 3,941,297 | $ | 3,944,056 | $ | 24,128 | (c) | $ | 2,121 | $ | 1,225 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,641,000 | 1,312,000 | (b) | — | 3,953,000 | 3,953,000 | 31,637 | — | — | |||||||||||||||||||||||
BlackRock Inc. | 14,048 | 3,066 | (1,055 | ) | 16,059 | 7,435,478 | 94,007 | 64,718 | 413,641 | |||||||||||||||||||||||
$ | 15,332,534 | $ | 149,772 | $ | 66,839 | $ | 414,866 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
S&P 500 E-Mini Index | 31 | 03/20/20 | $ | 4,574 | $ | (519,462 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) . | $ | 519,462 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 352,988 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (562,656 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 4,753,972 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
32 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Leaders ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 1,794,993,385 | $ | — | $ | — | $ | 1,794,993,385 | ||||||||
Money Market Funds | 7,897,056 | — | — | 7,897,056 | ||||||||||||
$ | 1,802,890,441 | $ | — | $ | — | $ | 1,802,890,441 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (519,462 | ) | $ | — | $ | — | $ | (519,462 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e of I n v e s t m e n t s | 33 |
Schedule of Investments (unaudited) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.7% | ||||||||
AAR Corp. | 1,859 | $ | 64,228 | |||||
Aerovironment Inc.(a) | 1,191 | 61,205 | ||||||
Astronics Corp.(a) | 2,992 | 60,648 | ||||||
Axon Enterprise Inc.(a) | 2,696 | 208,590 | ||||||
BWX Technologies Inc. | 9,615 | 527,287 | ||||||
Cubic Corp. | 3,000 | 163,320 | ||||||
Curtiss-Wright Corp. | 1,760 | 211,094 | ||||||
Hexcel Corp. | 5,958 | 385,066 | ||||||
Kratos Defense & Security Solutions Inc.(a)(b) | 4,194 | 68,194 | ||||||
Maxar Technologies Inc.(a) | 3,880 | 59,015 | ||||||
Mercury Systems Inc.(a) | 2,556 | 187,764 | ||||||
Moog Inc., Class A | 2,461 | 189,792 | ||||||
Vectrus Inc.(a) | 1,251 | 65,165 | ||||||
2,251,368 | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
Echo Global Logistics Inc.(a) | 6,512 | 120,147 | ||||||
Hub Group Inc., Class A(a) | 3,101 | 143,359 | ||||||
263,506 | ||||||||
Airlines — 0.0% | ||||||||
Hawaiian Holdings Inc. | 2,807 | 58,610 | ||||||
Auto Components — 1.0% | ||||||||
American Axle & Manufacturing Holdings Inc.(a) | 8,753 | 55,406 | ||||||
Cooper Tire & Rubber Co. | 2,847 | 72,570 | ||||||
Dana Inc. | 4,352 | 62,582 | ||||||
Delphi Technologies PLC(a) | 4,758 | 67,183 | ||||||
Dorman Products Inc.(a) | 1,225 | 74,284 | ||||||
Fox Factory Holding Corp.(a) | 1,349 | 85,527 | ||||||
Gentex Corp. | 7,895 | 210,796 | ||||||
Gentherm Inc.(a) | 5,414 | 220,783 | ||||||
Goodyear Tire & Rubber Co. (The) | 10,052 | 97,354 | ||||||
LCI Industries. | 706 | 68,164 | ||||||
Modine Manufacturing Co.(a) | 19,354 | 144,381 | ||||||
Tenneco Inc., Class A | 7,351 | 67,409 | ||||||
Visteon Corp.(a) | 1,225 | 79,674 | ||||||
1,306,113 | ||||||||
Automobiles — 0.2% | ||||||||
Thor Industries Inc. | 2,608 | 196,669 | ||||||
Winnebago Industries Inc. | 1,264 | 65,589 | ||||||
262,258 | ||||||||
Banks — 7.6% | ||||||||
Amalgamated Bank, Class A | 7,519 | 120,379 | ||||||
Ameris Bancorp. | 3,735 | 127,662 | ||||||
BancFirst Corp. | 2,552 | 130,918 | ||||||
BancorpSouth Bank | 8,671 | 212,179 | ||||||
Bank of Hawaii Corp. | 7,565 | 562,987 | ||||||
Bank OZK | 7,853 | 199,388 | ||||||
BankUnited Inc. | 5,467 | 162,370 | ||||||
Banner Corp. | 1,221 | 55,726 | ||||||
BOK Financial Corp. | 2,194 | 158,846 | ||||||
Bridge Bancorp. Inc. | 3,037 | 83,578 | ||||||
Cadence BanCorp. | 5,152 | 72,746 | ||||||
Camden National Corp. | 2,533 | 103,878 | ||||||
Columbia Banking System Inc. | 2,251 | 74,733 | ||||||
Commerce Bancshares Inc. | 4,883 | 298,058 | ||||||
Community Trust Bancorp. Inc. | 2,321 | 89,776 | ||||||
Cullen/Frost Bankers Inc. | 7,004 | 549,044 | ||||||
CVB Financial Corp. | 6,093 | 112,964 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Equity Bancshares Inc., Class A(a) | 3,264 | $ | 85,451 | |||||
First Busey Corp. | 7,404 | 163,406 | ||||||
First Financial Bancorp. | 6,391 | 131,655 | ||||||
First Financial Bankshares Inc. | 5,918 | 170,083 | ||||||
First Hawaiian Inc. | 4,479 | 107,272 | ||||||
First Horizon National Corp. | 14,269 | 190,206 | ||||||
First Interstate BancSystem Inc., Class A | 5,201 | 177,146 | ||||||
Fulton Financial Corp. | 27,061 | 391,031 | ||||||
Glacier Bancorp. Inc. | 6,337 | 236,307 | ||||||
Great Western Bancorp. Inc. | 6,387 | 171,619 | ||||||
Hancock Whitney Corp. | 4,038 | 135,273 | ||||||
Heartland Financial USA Inc. | 3,722 | 159,488 | ||||||
Heritage Financial Corp./WA. | 1,883 | 43,667 | ||||||
HomeTrust Bancshares Inc. | 6,041 | 143,534 | ||||||
Independent Bank Corp. | 901 | 60,844 | ||||||
International Bancshares Corp. | 10,785 | 367,768 | ||||||
Investors Bancorp. Inc. | 18,315 | 193,040 | ||||||
Live Oak Bancshares Inc. | 4,771 | 73,330 | ||||||
National Bank Holdings Corp., Class A | 1,480 | 45,273 | ||||||
Opus Bank | 7,844 | 185,667 | ||||||
Pinnacle Financial Partners Inc. | 4,612 | 242,776 | ||||||
Popular Inc. | 1,670 | 80,127 | ||||||
QCR Holdings Inc. | 3,781 | 143,905 | ||||||
ServisFirst Bancshares Inc. | 4,995 | 172,577 | ||||||
Simmons First National Corp., Class A | 7,691 | 164,434 | ||||||
South State Corp. | 2,505 | 170,641 | ||||||
Sterling Bancorp./DE. | 5,982 | 99,182 | ||||||
Stock Yards Bancorp. Inc. | 3,626 | 126,692 | ||||||
Synovus Financial Corp. | 2,280 | 66,166 | ||||||
TCF Financial Corp. | 7,952 | 289,771 | ||||||
Texas Capital Bancshares Inc.(a) | 3,917 | 184,412 | ||||||
TriState Capital Holdings Inc.(a) | 4,078 | 81,030 | ||||||
Triumph Bancorp. Inc.(a) | 1,858 | 62,930 | ||||||
Trustmark Corp. | 4,002 | 107,654 | ||||||
UMB Financial Corp. | 5,304 | 308,428 | ||||||
Umpqua Holdings Corp. | 16,417 | 252,658 | ||||||
United Bankshares Inc./WV | 2,828 | 81,673 | ||||||
Valley National Bancorp. | 8,032 | 74,698 | ||||||
Webster Financial Corp. | 7,988 | 303,304 | ||||||
Western Alliance Bancorp. | 6,514 | 299,905 | ||||||
Wintrust Financial Corp. | 3,655 | 195,214 | ||||||
9,855,469 | ||||||||
Beverages — 0.1% | ||||||||
Boston Beer Co. Inc. (The), Class A, NVS(a) | 175 | 64,888 | ||||||
Biotechnology — 4.6% | ||||||||
ACADIA Pharmaceuticals Inc.(a) | 5,860 | 250,456 | ||||||
Acceleron Pharma Inc.(a) | 1,665 | 143,074 | ||||||
Adverum Biotechnologies Inc.(a) | 4,224 | 51,997 | ||||||
Agios Pharmaceuticals Inc.(a) | 3,491 | 165,753 | ||||||
Aimmune Therapeutics Inc.(a)(b) | 2,625 | 62,501 | ||||||
Alder Biopharmaceuticals Inc.(b)(c) | 3,497 | 3,077 | ||||||
Alkermes PLC(a) | 4,141 | 86,298 | ||||||
Allakos Inc.(a) | 1,145 | 71,368 | ||||||
Amicus Therapeutics Inc.(a) | 10,020 | 95,641 | ||||||
AnaptysBio Inc.(a) | 4,350 | 65,033 | ||||||
Apellis Pharmaceuticals Inc.(a) | 1,691 | 58,542 | ||||||
Arena Pharmaceuticals Inc.(a) | 1,398 | 62,351 | ||||||
Arrowhead Pharmaceuticals Inc.(a) | 3,151 | 111,419 | ||||||
Atara Biotherapeutics Inc.(a) | 5,075 | 61,661 |
34 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Biohaven Pharmaceutical Holding Co. Ltd.(a) | 1,882 | $ | 83,109 | |||||
Bluebird Bio Inc.(a)(b) | 2,507 | 181,331 | ||||||
Blueprint Medicines Corp.(a) | 1,743 | 94,349 | ||||||
ChemoCentryx Inc.(a) | 1,408 | 63,008 | ||||||
Coherus Biosciences Inc.(a) | 3,717 | 71,924 | ||||||
CRISPR Therapeutics AG(a) | 1,326 | 70,875 | ||||||
Deciphera Pharmaceuticals Inc.(a) | 1,352 | 71,981 | ||||||
Denali Therapeutics Inc.(a) | 3,788 | 74,889 | ||||||
Dicerna Pharmaceuticals Inc.(a) | 3,617 | 71,400 | ||||||
Eagle Pharmaceuticals Inc./DE(a)(b) | 1,431 | 65,683 | ||||||
Emergent BioSolutions Inc.(a) | 1,307 | 76,695 | ||||||
Enanta Pharmaceuticals Inc.(a) | 1,375 | 69,960 | ||||||
Epizyme Inc.(a)(b) | 3,038 | 65,104 | ||||||
Esperion Therapeutics Inc.(a) | 1,108 | 55,943 | ||||||
Exelixis Inc.(a) | 10,729 | 199,452 | ||||||
Fate Therapeutics Inc.(a) | 2,378 | 69,438 | ||||||
FibroGen Inc.(a) | 4,013 | 167,743 | ||||||
Flexion Therapeutics Inc.(a)(b) | 4,503 | 71,102 | ||||||
Forty Seven Inc.(a) | 1,506 | 87,348 | ||||||
Global Blood Therapeutics Inc.(a) | 2,622 | 167,703 | ||||||
Halozyme Therapeutics Inc.(a) | 7,506 | 146,892 | ||||||
Heron Therapeutics Inc.(a)(b) | 3,454 | 64,417 | ||||||
Immunomedics Inc.(a) | 7,517 | 120,272 | ||||||
Insmed Inc.(a) | 4,382 | 109,112 | ||||||
Intercept Pharmaceuticals Inc.(a) | 1,081 | 99,387 | ||||||
Invitae Corp.(a) | 3,097 | 63,117 | ||||||
Iovance Biotherapeutics Inc.(a) | 4,362 | 143,553 | ||||||
Ironwood Pharmaceuticals Inc.(a) | 6,404 | 77,104 | ||||||
Karyopharm Therapeutics Inc.(a) | 4,519 | 73,841 | ||||||
Kodiak Sciences Inc.(a) | 1,165 | 74,525 | ||||||
Ligand Pharmaceuticals Inc.(a) | 999 | 93,506 | ||||||
Mirati Therapeutics Inc.(a) | 1,208 | 108,104 | ||||||
Momenta Pharmaceuticals Inc.(a) | 3,896 | 110,218 | ||||||
Myriad Genetics Inc.(a) | 3,690 | 65,018 | ||||||
Natera Inc.(a) | 2,045 | 77,516 | ||||||
OPKO Health Inc.(a) | 46,772 | 70,158 | ||||||
Progenics Pharmaceuticals Inc.(a)(b) | 15,342 | 72,414 | ||||||
PTC Therapeutics Inc.(a) | 2,179 | 119,496 | ||||||
Ra Pharmaceuticals Inc.(a) | 1,575 | 73,647 | ||||||
Radius Health Inc.(a) | 3,643 | 76,722 | ||||||
REGENXBIO Inc.(a) | 1,812 | 72,480 | ||||||
Sage Therapeutics Inc.(a)(b) | 2,422 | 113,834 | ||||||
Sangamo Therapeutics Inc.(a) | 9,645 | 82,272 | ||||||
Turning Point Therapeutics Inc.(a) | 1,148 | 56,906 | ||||||
Ultragenyx Pharmaceutical Inc.(a) | 3,499 | 196,224 | ||||||
uniQure NV(a) | 1,627 | 83,725 | ||||||
United Therapeutics Corp.(a) | 1,333 | 137,246 | ||||||
Veracyte Inc.(a) | 2,823 | 69,700 | ||||||
Xencor Inc.(a) | 2,057 | 66,832 | ||||||
ZIOPHARM Oncology Inc.(a)(b) | 21,485 | 66,389 | ||||||
5,952,835 | ||||||||
Building Products — 0.9% | ||||||||
AAON Inc. | 2,619 | 144,071 | ||||||
Advanced Drainage Systems Inc. | 4,420 | 185,021 | ||||||
Armstrong World Industries Inc. | 3,268 | 327,290 | ||||||
Builders FirstSource Inc.(a) | 6,694 | 152,021 | ||||||
Resideo Technologies Inc.(a) | 8,235 | 88,526 | ||||||
Trex Co. Inc.(a) | 2,453 | 234,630 | ||||||
1,131,559 |
Security | Shares | Value | ||||||
Capital Markets — 1.9% | ||||||||
Affiliated Managers Group Inc. | 3,470 | $ | 261,013 | |||||
Donnelley Financial Solutions Inc.(a) | 7,479 | 65,067 | ||||||
Evercore Inc., Class A | 1,081 | 72,016 | ||||||
Federated Hermes Inc., Class B | 3,257 | 93,965 | ||||||
Interactive Brokers Group Inc., Class A | 1,558 | 79,614 | ||||||
INTL. FCStone Inc.(a) | 1,904 | 86,727 | ||||||
Janus Henderson Group PLC | 23,362 | 495,275 | ||||||
Legg Mason Inc. | 9,751 | 485,795 | ||||||
LPL Financial Holdings Inc. | 3,755 | 298,448 | ||||||
Morningstar Inc. | 1,170 | 171,873 | ||||||
Stifel Financial Corp. | 1,164 | 63,368 | ||||||
Virtu Financial Inc., Class A | 4,164 | 78,325 | ||||||
Virtus Investment Partners Inc. | 606 | 66,902 | ||||||
Westwood Holdings Group Inc. | 2,685 | 68,145 | ||||||
2,386,533 | ||||||||
Chemicals — 1.0% | ||||||||
Balchem Corp. | 948 | 89,548 | ||||||
Chemours Co. (The) | 6,652 | 98,849 | ||||||
HB Fuller Co. | 3,998 | 156,842 | ||||||
Huntsman Corp. | 5,931 | 112,333 | ||||||
Ingevity Corp.(a) | 1,133 | 51,030 | ||||||
Innospec Inc. | 1,854 | 160,445 | ||||||
Minerals Technologies Inc. | 4,590 | 205,953 | ||||||
Scotts Miracle-Gro Co. (The) | 1,100 | 116,589 | ||||||
Stepan Co. | 1,286 | 112,949 | ||||||
Trinseo SA | 3,018 | 66,034 | ||||||
Valvoline Inc. | 5,104 | 99,528 | ||||||
1,270,100 | ||||||||
Commercial Services & Supplies — 2.9% | ||||||||
ABM Industries Inc. | 5,792 | 190,673 | ||||||
ACCO Brands Corp. | 13,425 | 107,534 | ||||||
ADT Inc.(b) | 12,430 | 79,428 | ||||||
Brady Corp., Class A, NVS | 3,489 | 165,169 | ||||||
Brink's Co. (The) | 863 | 67,564 | ||||||
Cimpress PLC(a)(b) | 831 | 96,737 | ||||||
Clean Harbors Inc.(a) | 1,542 | 107,200 | ||||||
Covanta Holding Corp. | 13,722 | 183,326 | ||||||
Deluxe Corp. | 2,486 | 82,784 | ||||||
Healthcare Services Group Inc. | 4,016 | 110,601 | ||||||
Herman Miller Inc. | 7,422 | 254,129 | ||||||
HNI Corp. | 2,269 | 74,491 | ||||||
IAA Inc.(a). | 7,423 | 317,111 | ||||||
KAR Auction Services Inc. | 14,046 | 270,386 | ||||||
Knoll Inc. | 4,410 | 77,792 | ||||||
Matthews International Corp., Class A | 5,745 | 169,822 | ||||||
McGrath RentCorp. | 2,081 | 144,525 | ||||||
Mobile Mini Inc. | 3,258 | 127,029 | ||||||
MSA Safety Inc. | 1,673 | 203,554 | ||||||
Pitney Bowes Inc. | 6,758 | 23,112 | ||||||
SP Plus Corp.(a) . | 2,832 | 103,396 | ||||||
Steelcase Inc., Class A. | 6,682 | 108,382 | ||||||
Team Inc.(a). | 8,261 | 105,163 | ||||||
Tetra Tech Inc. | 3,481 | 281,508 | ||||||
UniFirst Corp./MA | 1,076 | 199,932 | ||||||
Viad Corp. | 2,680 | 134,536 | ||||||
3,785,884 | ||||||||
Communications Equipment — 1.1% | ||||||||
ADTRAN Inc. | 8,506 | 68,431 | ||||||
Ciena Corp.(a) | 8,828 | 339,437 |
S c h e d u l e o f I n v e s t m e n t s | 35 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Communications Equipment (continued) | ||||||||
CommScope Holding Co. Inc.(a)(b) | 12,186 | $ | 134,168 | |||||
EchoStar Corp., Class A(a) | 1,835 | 64,078 | ||||||
Infinera Corp.(a) | 9,288 | 63,158 | ||||||
InterDigital Inc. | 2,179 | 115,247 | ||||||
Lumentum Holdings Inc.(a) | 4,059 | 315,871 | ||||||
NETGEAR Inc.(a) | 3,322 | 62,686 | ||||||
NetScout Systems Inc.(a) | 3,268 | 83,988 | ||||||
Plantronics Inc. | 5,053 | 69,378 | ||||||
Ribbon Communications Inc.(a) | 23,711 | 76,587 | ||||||
1,393,029 | ||||||||
Construction & Engineering — 2.1% | ||||||||
AECOM(a) . | 11,710 | 526,247 | ||||||
Aegion Corp.(a) | 5,508 | 99,199 | ||||||
Arcosa Inc. | 2,184 | 93,825 | ||||||
Argan Inc. | 1,638 | 68,354 | ||||||
Comfort Systems USA Inc. | 4,623 | 195,183 | ||||||
EMCOR Group Inc. | 5,981 | 460,058 | ||||||
Fluor Corp. | 8,636 | 80,487 | ||||||
Granite Construction Inc. | 4,137 | 84,064 | ||||||
Great Lakes Dredge & Dock Corp.(a) | 7,401 | 71,790 | ||||||
IES Holdings Inc.(a) | 2,744 | 63,963 | ||||||
MasTec Inc.(a) | 2,016 | 98,945 | ||||||
MYR Group Inc.(a) | 2,473 | 63,086 | ||||||
Primoris Services Corp. | 3,355 | 63,678 | ||||||
Quanta Services Inc. | 13,949 | 531,875 | ||||||
Valmont Industries Inc. | 1,680 | 195,250 | ||||||
WillScot Corp.(a) | 3,968 | 69,599 | ||||||
2,765,603 | ||||||||
Construction Materials — 0.1% | ||||||||
Summit Materials Inc., Class A(a) | 5,547 | 108,388 | ||||||
U.S. Concrete Inc.(a) | 1,950 | 52,338 | ||||||
160,726 | ||||||||
Consumer Finance — 0.4% | ||||||||
Credit Acceptance Corp.(a)(b) | 170 | 68,544 | ||||||
Encore Capital Group Inc.(a) | 2,305 | 85,654 | ||||||
Green Dot Corp., Class A(a) | 2,105 | 71,907 | ||||||
LendingTree Inc.(a) | 221 | 60,956 | ||||||
PRA Group Inc.(a) | 4,727 | 183,502 | ||||||
SLM Corp. | 8,471 | 87,844 | ||||||
558,407 | ||||||||
Containers & Packaging — 1.0% | ||||||||
AptarGroup Inc. | 5,083 | 513,739 | ||||||
Berry Global Group Inc.(a) | 3,869 | 146,867 | ||||||
Graphic Packaging Holding Co. | 6,033 | 81,566 | ||||||
Greif Inc., Class A, NVS | 2,107 | 74,461 | ||||||
Greif Inc., Class B | 1,403 | 56,134 | ||||||
Myers Industries Inc. | 4,626 | 62,775 | ||||||
O-I Glass Inc. | 6,328 | 68,343 | ||||||
Sonoco Products Co. | 5,408 | 260,720 | ||||||
1,264,605 | ||||||||
Distributors — 0.4% | ||||||||
Pool Corp. | 2,520 | 531,619 | ||||||
Diversified Consumer Services — 2.2% | ||||||||
American Public Education Inc.(a) | 2,989 | 66,535 | ||||||
Bright Horizons Family Solutions Inc.(a) | 5,606 | 880,983 | ||||||
Carriage Services Inc. | 4,847 | 102,514 | ||||||
Chegg Inc.(a) | 2,504 | 98,182 | ||||||
frontdoor Inc.(a) | 3,930 | 166,632 |
Security | Shares | Value | ||||||
Diversified Consumer Services (continued) | ||||||||
Graham Holdings Co., Class B | 262 | $ | 131,755 | |||||
Grand Canyon Education Inc.(a) | 1,419 | 114,485 | ||||||
H&R Block Inc. | 7,475 | 154,508 | ||||||
Houghton Mifflin Harcourt Co.(a) | 11,756 | 64,305 | ||||||
Laureate Education Inc., Class A(a) | 3,604 | 67,395 | ||||||
Service Corp. International | 9,682 | 462,703 | ||||||
ServiceMaster Global Holdings Inc.(a) | 9,012 | 322,359 | ||||||
Strategic Education Inc. | 553 | 81,501 | ||||||
WW International Inc.(a)(b) | 2,918 | 87,540 | ||||||
2,801,397 | ||||||||
Diversified Telecommunication Services — 0.2% | ||||||||
Cogent Communications Holdings Inc. | 1,092 | 79,727 | ||||||
GCI Liberty Inc., Class A(a) | 1,310 | 90,534 | ||||||
Iridium Communications Inc.(a) | 4,403 | 119,189 | ||||||
289,450 | ||||||||
Electric Utilities — 0.4% | ||||||||
Hawaiian Electric Industries Inc. | 12,591 | 539,398 | ||||||
Electrical Equipment — 0.9% | ||||||||
Atkore International Group Inc.(a) | 2,346 | 86,591 | ||||||
Bloom Energy Corp., Class A(a)(b) | 6,710 | 60,860 | ||||||
EnerSys . | 1,282 | 78,945 | ||||||
Generac Holdings Inc.(a) | 3,222 | 331,834 | ||||||
Hubbell Inc. | 2,222 | 296,059 | ||||||
Plug Power Inc.(a) | 16,496 | 71,592 | ||||||
Regal Beloit Corp. | 1,034 | 80,280 | ||||||
Sunrun Inc.(a)(b) | 6,108 | 118,129 | ||||||
1,124,290 | ||||||||
Electronic Equipment, Instruments & Components — 3.7% | ||||||||
Anixter International Inc.(a) | 1,864 | 181,759 | ||||||
Avnet Inc. | 6,951 | 213,257 | ||||||
Badger Meter Inc. | 4,528 | 272,631 | ||||||
Belden Inc. | 1,577 | 62,970 | ||||||
Benchmark Electronics Inc. | 4,371 | 118,804 | ||||||
Coherent Inc.(a) | 1,335 | 171,828 | ||||||
CTS Corp. | 4,417 | 115,151 | ||||||
Dolby Laboratories Inc., Class A | 5,179 | 340,260 | ||||||
ePlus Inc.(a) | 1,495 | 113,261 | ||||||
Fabrinet(a) | 2,181 | 120,217 | ||||||
Fitbit Inc., Class A(a)(b) | 11,391 | 72,788 | ||||||
Insight Enterprises Inc.(a) | 3,031 | 166,978 | ||||||
Itron Inc.(a). | 2,596 | 196,881 | ||||||
Jabil Inc. | 2,001 | 64,132 | ||||||
KEMET Corp. | 3,821 | 99,652 | ||||||
Knowles Corp.(a) | 4,023 | 66,862 | ||||||
Littelfuse Inc. | 1,016 | 162,235 | ||||||
Methode Electronics Inc. | 6,230 | 191,012 | ||||||
MTS Systems Corp. | 4,087 | 164,052 | ||||||
National Instruments Corp. | 12,687 | 511,032 | ||||||
Novanta Inc.(a)(b) | 2,135 | 190,463 | ||||||
OSI Systems Inc.(a) | 1,498 | 121,742 | ||||||
Plexus Corp.(a) | 2,781 | 184,519 | ||||||
Rogers Corp.(a)(b) | 1,026 | 119,016 | ||||||
SYNNEX Corp. | 2,097 | 262,188 | ||||||
Tech Data Corp.(a) | 2,303 | 327,924 | ||||||
Vishay Intertechnology Inc. | 5,751 | 107,544 | ||||||
Vishay Precision Group Inc.(a) | 2,206 | 60,599 | ||||||
4,779,757 |
36 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Energy Equipment & Services — 0.9% | ||||||||
Apergy Corp.(a) | 7,260 | $ | 135,036 | |||||
Archrock Inc. | 8,861 | 62,470 | ||||||
Cactus Inc., Class A | 2,553 | 69,722 | ||||||
Core Laboratories NV | 6,431 | 172,608 | ||||||
DMC Global Inc. | 1,882 | 67,865 | ||||||
Dril-Quip Inc.(a) | 1,787 | 63,653 | ||||||
Exterran Corp.(a) | 11,285 | 57,554 | ||||||
Helix Energy Solutions Group Inc.(a) | 8,445 | 56,666 | ||||||
Newpark Resources Inc.(a) | 19,599 | 68,792 | ||||||
Oceaneering International Inc.(a) | 8,952 | 94,354 | ||||||
Oil States International Inc.(a) | 6,589 | 52,119 | ||||||
Solaris Oilfield Infrastructure Inc., Class A | 6,180 | 65,508 | ||||||
Tidewater Inc.(a)(b) | 4,593 | 63,797 | ||||||
U.S. Silica Holdings Inc. | 13,997 | 64,246 | ||||||
1,094,390 | ||||||||
Entertainment — 0.7% | ||||||||
Cinemark Holdings Inc. | 8,207 | 213,054 | ||||||
IMAX Corp.(a) | 12,380 | 192,880 | ||||||
Lions Gate Entertainment Corp., Class A(a) | 7,107 | 56,501 | ||||||
Madison Square Garden Co. (The), Class A(a) | 509 | 136,320 | ||||||
World Wrestling Entertainment Inc., Class A | 1,931 | 90,313 | ||||||
Zynga Inc., Class A(a) | 32,439 | 217,666 | ||||||
906,734 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 9.2% | ||||||||
Agree Realty Corp. | 2,351 | 168,849 | ||||||
Alexander & Baldwin Inc. | 8,958 | 168,410 | ||||||
American Assets Trust Inc. | 2,181 | 90,402 | ||||||
American Campus Communities Inc. | 11,855 | 514,981 | ||||||
Americold Realty Trust | 6,960 | 213,463 | ||||||
Apartment Investment & Management Co., Class A | 1,742 | 83,337 | ||||||
Armada Hoffler Properties Inc. | 5,617 | 94,141 | ||||||
Brandywine Realty Trust | 38,115 | 517,602 | ||||||
Brixmor Property Group Inc. | 18,711 | 340,727 | ||||||
City Office REIT Inc. | 5,068 | 58,789 | ||||||
Colony Capital Inc. | 23,137 | 91,623 | ||||||
Columbia Property Trust Inc. | 8,372 | 157,896 | ||||||
CoreSite Realty Corp. | 3,504 | 363,470 | ||||||
Corporate Office Properties Trust | 17,328 | 439,092 | ||||||
Cousins Properties Inc. | 6,225 | 222,170 | ||||||
CubeSmart | 6,727 | 203,626 | ||||||
CyrusOne Inc. | 5,749 | 348,274 | ||||||
DiamondRock Hospitality Co. | 20,281 | 184,963 | ||||||
Diversified Healthcare Trust | 9,637 | 60,617 | ||||||
Douglas Emmett Inc. | 23,429 | 894,519 | ||||||
Easterly Government Properties Inc. | 27,633 | 656,836 | ||||||
Empire State Realty Trust Inc., Class A | 7,960 | 93,132 | ||||||
EPR Properties | 1,007 | 59,655 | ||||||
Essential Properties Realty Trust Inc. | 6,163 | 141,194 | ||||||
First Industrial Realty Trust Inc. | 3,685 | 141,873 | ||||||
Four Corners Property Trust Inc. | 10,746 | 308,303 | ||||||
Franklin Street Properties Corp. | 13,980 | 99,677 | ||||||
Gaming and Leisure Properties Inc. | 1,558 | 69,596 | ||||||
Global Net Lease Inc. | 3,641 | 67,176 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 2,558 | 86,844 | ||||||
Healthcare Trust of America Inc., Class A | 4,259 | 132,625 | ||||||
Hudson Pacific Properties Inc. | 5,930 | 191,420 | ||||||
JBG SMITH Properties | 7,728 | 283,463 | ||||||
Kilroy Realty Corp. | 9,374 | 681,396 | ||||||
Life Storage Inc. | 2,134 | 230,280 |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) | ||||||||
Macerich Co. (The) | 16,228 | $ | 331,376 | |||||
Office Properties Income Trust | 2,514 | 73,233 | ||||||
Outfront Media Inc. | 8,906 | 234,584 | ||||||
Paramount Group Inc. | 6,644 | 80,725 | ||||||
Park Hotels & Resorts Inc. | 10,375 | 189,448 | ||||||
Pebblebrook Hotel Trust | 3,001 | 60,650 | ||||||
Physicians Realty Trust | 5,145 | 97,035 | ||||||
Piedmont Office Realty Trust Inc., Class A | 8,574 | 185,113 | ||||||
PotlatchDeltic Corp. | 2,282 | 83,841 | ||||||
QTS Realty Trust Inc., Class A | 3,397 | 190,810 | ||||||
Rayonier Inc. | 2,898 | 76,884 | ||||||
Rexford Industrial Realty Inc. | 7,459 | 348,857 | ||||||
RLJ Lodging Trust | 7,942 | 104,914 | ||||||
Ryman Hospitality Properties Inc. | 810 | 56,303 | ||||||
Sabra Health Care REIT Inc. | 13,496 | 263,847 | ||||||
Service Properties Trust | 8,943 | 161,689 | ||||||
SITE Centers Corp. | 8,974 | 103,291 | ||||||
STAG Industrial Inc. | 2,160 | 60,437 | ||||||
STORE Capital Corp. | 5,873 | 192,987 | ||||||
Sunstone Hotel Investors Inc. | 10,360 | 113,442 | ||||||
Taubman Centers Inc. | 1,874 | 97,560 | ||||||
Uniti Group Inc. | 12,156 | 118,643 | ||||||
Washington Prime Group Inc. | 26,019 | 71,552 | ||||||
Washington REIT | 4,237 | 113,763 | ||||||
11,871,405 | ||||||||
Food & Staples Retailing — 1.1% | ||||||||
Andersons Inc. (The) | 3,581 | 65,783 | ||||||
BJ's Wholesale Club Holdings Inc.(a)(b) | 5,775 | 111,227 | ||||||
Casey's General Stores Inc. | 1,240 | 202,145 | ||||||
Grocery Outlet Holding Corp.(a) | 2,126 | 67,288 | ||||||
Performance Food Group Co.(a) | 5,652 | 239,645 | ||||||
PriceSmart Inc. | 1,635 | 91,053 | ||||||
SpartanNash Co. | 5,708 | 70,950 | ||||||
Sprouts Farmers Market Inc.(a) | 6,249 | 99,859 | ||||||
U.S. Foods Holding Corp.(a) | 13,044 | 438,800 | ||||||
United Natural Foods Inc.(a) | 9,702 | 62,772 | ||||||
1,449,522 | ||||||||
Food Products — 1.2% | ||||||||
B&G Foods Inc. | 5,300 | 78,440 | ||||||
Beyond Meat Inc.(a)(b) | 877 | 78,623 | ||||||
Darling Ingredients Inc.(a) | 9,693 | 249,110 | ||||||
Farmer Bros. Co.(a)(b) | 5,226 | 64,541 | ||||||
Flowers Foods Inc. | 6,522 | 140,419 | ||||||
Fresh Del Monte Produce Inc. | 2,208 | 60,543 | ||||||
Freshpet Inc.(a) | 2,569 | 170,736 | ||||||
Hain Celestial Group Inc. (The)(a) | 5,910 | 140,244 | ||||||
Hostess Brands Inc.(a) | 5,976 | 75,955 | ||||||
Pilgrim's Pride Corp.(a) | 2,825 | 59,777 | ||||||
Post Holdings Inc.(a)(b) | 2,065 | 209,102 | ||||||
Sanderson Farms Inc. | 543 | 67,093 | ||||||
Simply Good Foods Co. (The)(a) | 4,607 | 101,631 | ||||||
TreeHouse Foods Inc.(a) | 2,710 | 103,278 | ||||||
1,599,492 | ||||||||
Gas Utilities — 1.3% | ||||||||
Chesapeake Utilities Corp. | 1,074 | 91,827 | ||||||
National Fuel Gas Co. | 4,764 | 174,410 | ||||||
New Jersey Resources Corp. | 5,503 | 194,311 | ||||||
Northwest Natural Holding Co. | 2,130 | 140,090 | ||||||
ONE Gas Inc. | 5,101 | 418,996 |
S c h e d u l e o f I n v e s t m e n t s | 37 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Gas Utilities (continued) | ||||||||
South Jersey Industries Inc. | 9,085 | $ | 245,749 | |||||
Southwest Gas Holdings Inc. | 4,380 | 283,299 | ||||||
Spire Inc. | 848 | 63,642 | ||||||
1,612,324 | ||||||||
Health Care Equipment & Supplies — 3.3% | ||||||||
AngioDynamics Inc.(a) | 5,851 | 67,228 | ||||||
Antares Pharma Inc.(a) | 20,569 | 63,764 | ||||||
AtriCure Inc.(a) | 2,794 | 107,345 | ||||||
Atrion Corp. | 110 | 67,794 | ||||||
Avanos Medical Inc.(a)(b) | 2,486 | 80,571 | ||||||
Cantel Medical Corp. | 1,648 | 103,989 | ||||||
Cardiovascular Systems Inc.(a) | 2,603 | 97,925 | ||||||
CONMED Corp. | 889 | 84,135 | ||||||
Envista Holdings Corp.(a) | 5,334 | 135,377 | ||||||
GenMark Diagnostics Inc.(a) | 17,140 | 59,819 | ||||||
Glaukos Corp.(a) | 1,679 | 73,842 | ||||||
Globus Medical Inc., Class A(a) | 3,817 | 172,643 | ||||||
Haemonetics Corp.(a) | 2,288 | 247,859 | ||||||
Heska Corp.(a) . | 830 | 79,240 | ||||||
Hill-Rom Holdings Inc. | 3,161 | 303,614 | ||||||
Inogen Inc.(a) | 1,593 | 72,928 | ||||||
Integer Holdings Corp.(a) | 991 | 89,358 | ||||||
Integra LifeSciences Holdings Corp.(a) | 1,238 | 64,500 | ||||||
iRhythm Technologies Inc.(a) | 850 | 73,924 | ||||||
LeMaitre Vascular Inc. | 2,412 | 68,742 | ||||||
LivaNova PLC(a) | 1,552 | 108,205 | ||||||
Merit Medical Systems Inc.(a) | 3,903 | 140,547 | ||||||
Natus Medical Inc.(a) | 2,358 | 63,383 | ||||||
Neogen Corp.(a) | 1,275 | 77,456 | ||||||
Nevro Corp.(a) | 1,237 | 160,996 | ||||||
Novocure Ltd.(a)(b) | 3,053 | 222,106 | ||||||
NuVasive Inc.(a) | 1,995 | 131,291 | ||||||
OraSure Technologies Inc.(a) | 16,219 | 97,801 | ||||||
Orthofix Medical Inc.(a) | 1,624 | 57,392 | ||||||
Penumbra Inc.(a) | 1,621 | 268,859 | ||||||
Quidel Corp.(a) | 1,698 | 131,154 | ||||||
Quotient Ltd.(a)(b) | 9,924 | 60,338 | ||||||
Shockwave Medical Inc.(a) | 1,616 | 64,866 | ||||||
Silk Road Medical Inc.(a) | 1,465 | 58,380 | ||||||
STAAR Surgical Co.(a) | 2,261 | 70,950 | ||||||
Tactile Systems Technology Inc.(a) | 1,399 | 70,524 | ||||||
Tandem Diabetes Care Inc.(a) | 2,656 | 198,297 | ||||||
Varex Imaging Corp.(a)(b) . | 3,112 | 72,261 | ||||||
Wright Medical Group NV(a) | 2,977 | 90,054 | ||||||
4,259,457 | ||||||||
Health Care Providers & Services — 3.2% | ||||||||
Acadia Healthcare Co. Inc.(a)(b) | 3,216 | 95,194 | ||||||
Addus HomeCare Corp.(a) | 1,073 | 81,838 | ||||||
Amedisys Inc.(a) | 1,509 | 262,581 | ||||||
AMN Healthcare Services Inc.(a) | 3,497 | 257,379 | ||||||
BioTelemetry Inc.(a) | 2,339 | 99,922 | ||||||
Brookdale Senior Living Inc.(a) | 10,606 | 69,681 | ||||||
Chemed Corp. | 444 | 185,423 | ||||||
CorVel Corp.(a) | 936 | 64,528 | ||||||
Covetrus Inc.(a) | 6,493 | 72,137 | ||||||
Encompass Health Corp. | 5,293 | 396,128 | ||||||
Ensign Group Inc. (The) | 2,289 | 101,861 | ||||||
Guardant Health Inc.(a)(b) | 1,511 | 131,397 | ||||||
Hanger Inc.(a) | 3,364 | 77,607 |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
HealthEquity Inc.(a) | 1,992 | $ | 141,412 | |||||
LHC Group Inc.(a) | 1,640 | 199,194 | ||||||
Magellan Health Inc.(a) | 1,012 | 60,730 | ||||||
MEDNAX Inc.(a) | 4,324 | 73,897 | ||||||
Molina Healthcare Inc.(a) | 1,921 | 235,419 | ||||||
National Research Corp. | 2,600 | 142,974 | ||||||
Patterson Companies Inc. | 13,791 | 328,088 | ||||||
Pennant Group Inc. (The)(a) | 2,519 | 68,441 | ||||||
PetIQ Inc.(a)(b) | 2,252 | 70,037 | ||||||
Premier Inc., Class A(a) | 4,528 | 133,259 | ||||||
Providence Service Corp. (The)(a) | 1,746 | 107,868 | ||||||
R1 RCM Inc.(a) | 9,937 | 122,026 | ||||||
Select Medical Holdings Corp.(a) | 8,985 | 215,101 | ||||||
Tenet Healthcare Corp.(a)(b) | 2,442 | 64,176 | ||||||
Tivity Health Inc.(a) | 4,424 | 56,052 | ||||||
U.S. Physical Therapy Inc. | 1,407 | 146,638 | ||||||
4,060,988 | ||||||||
Health Care Technology — 0.6% | ||||||||
Allscripts Healthcare Solutions Inc.(a) | 15,399 | 116,108 | ||||||
HMS Holdings Corp.(a) | 3,382 | 77,685 | ||||||
Omnicell Inc.(a) | 846 | 68,924 | ||||||
Teladoc Health Inc.(a) | 3,119 | 389,750 | ||||||
Vocera Communications Inc.(a) | 3,384 | 82,536 | ||||||
735,003 | ||||||||
Hotels, Restaurants & Leisure — 2.4% | ||||||||
Boyd Gaming Corp. | 3,430 | 91,615 | ||||||
Brinker International Inc. | 2,104 | 72,272 | ||||||
Caesars Entertainment Corp.(a) | 27,490 | 349,398 | ||||||
Churchill Downs Inc. | 1,889 | 237,334 | ||||||
Dave & Buster's Entertainment Inc. | 1,636 | 54,004 | ||||||
Dine Brands Global Inc. | 1,536 | 125,722 | ||||||
Dunkin' Brands Group Inc. | 6,234 | 414,686 | ||||||
El Pollo Loco Holdings Inc.(a)(b) | 6,667 | 86,004 | ||||||
Eldorado Resorts Inc.(a) | 2,171 | 108,941 | ||||||
Everi Holdings Inc.(a) | 5,954 | 61,922 | ||||||
Hilton Grand Vacations Inc.(a) | 2,711 | 72,275 | ||||||
Jack in the Box Inc. | 1,285 | 88,485 | ||||||
Marriott Vacations Worldwide Corp. | 1,494 | 144,589 | ||||||
Penn National Gaming Inc.(a) | 4,805 | 142,084 | ||||||
Planet Fitness Inc., Class A(a) | 4,004 | 270,230 | ||||||
PlayAGS Inc.(a) | 7,027 | 68,092 | ||||||
Red Robin Gourmet Burgers Inc.(a) | 2,145 | 58,988 | ||||||
Scientific Games Corp./DE, Class A(a) | 2,498 | 45,564 | ||||||
Shake Shack Inc., Class A(a) | 1,753 | 104,198 | ||||||
Six Flags Entertainment Corp. | 2,247 | 56,804 | ||||||
Texas Roadhouse Inc. | 1,312 | 73,761 | ||||||
Wendy's Co. (The) | 9,599 | 181,229 | ||||||
Wingstop Inc. | 1,167 | 98,553 | ||||||
Wyndham Hotels & Resorts Inc. | 2,237 | 113,975 | ||||||
3,120,725 | ||||||||
Household Durables — 1.3% | ||||||||
Cavco Industries Inc.(a) | 298 | 60,113 | ||||||
Century Communities Inc.(a) | 2,043 | 68,093 | ||||||
Ethan Allen Interiors Inc. | 4,929 | 65,063 | ||||||
Helen of Troy Ltd.(a) | 1,754 | 288,708 | ||||||
iRobot Corp.(a)(b) | 2,598 | 124,678 | ||||||
KB Home | 5,929 | 193,226 | ||||||
La-Z-Boy Inc. | 2,583 | 74,003 | ||||||
LGI Homes Inc.(a) | 1,417 | 106,771 |
38 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Household Durables (continued) | ||||||||
MDC Holdings Inc. | 1,877 | $ | 73,841 | |||||
Meritage Homes Corp.(a) | 1,578 | 100,140 | ||||||
Taylor Morrison Home Corp., Class A(a) | 5,134 | 115,618 | ||||||
Tempur Sealy International Inc.(a) | 819 | 61,220 | ||||||
Toll Brothers Inc. | 3,514 | 130,124 | ||||||
TopBuild Corp.(a) | 1,297 | 130,997 | ||||||
TRI Pointe Group Inc.(a) | 4,480 | 68,678 | ||||||
1,661,273 | ||||||||
Household Products — 0.2% | ||||||||
Energizer Holdings Inc. | 3,174 | 136,450 | ||||||
Spectrum Brands Holdings Inc. | 2,075 | 111,822 | ||||||
248,272 | ||||||||
Independent Power and Renewable Electricity Producers — 1.1% | ||||||||
Clearway Energy Inc., Class C | 9,433 | 198,470 | ||||||
NextEra Energy Partners LP | 6,470 | 373,125 | ||||||
Ormat Technologies Inc. | 4,293 | 299,136 | ||||||
Pattern Energy Group Inc., Class A | 13,969 | 377,862 | ||||||
TerraForm Power Inc., Class A | 9,846 | 185,006 | ||||||
1,433,599 | ||||||||
Industrial Conglomerates — 0.5% | ||||||||
Carlisle Companies Inc. | 3,304 | 480,038 | ||||||
Raven Industries Inc. | 6,861 | 196,979 | ||||||
677,017 | ||||||||
Insurance — 1.6% | ||||||||
American Equity Investment Life Holding Co. | 1,586 | 40,094 | ||||||
Axis Capital Holdings Ltd. | 3,252 | 182,502 | ||||||
Brighthouse Financial Inc.(a) | 2,259 | 80,962 | ||||||
CNO Financial Group Inc. | 4,328 | 69,335 | ||||||
Crawford & Co., Class A, NVS | 8,346 | 62,094 | ||||||
eHealth Inc.(a) | 1,042 | 122,279 | ||||||
First American Financial Corp. | 8,253 | 471,246 | ||||||
Genworth Financial Inc., Class A(a) | 26,029 | 101,513 | ||||||
Hanover Insurance Group Inc. (The) | 3,126 | 370,556 | ||||||
Horace Mann Educators Corp. | 758 | 29,509 | ||||||
Kemper Corp. | 1,763 | 121,365 | ||||||
Primerica Inc. | 1,496 | 166,565 | ||||||
ProAssurance Corp. | 1,031 | 27,992 | ||||||
Selective Insurance Group Inc. | 1,634 | 91,144 | ||||||
Universal Insurance Holdings Inc. | 2,975 | 61,553 | ||||||
1,998,709 | ||||||||
Interactive Media & Services — 0.1% | ||||||||
Yelp Inc.(a) | 2,617 | 81,834 | ||||||
Internet & Direct Marketing Retail — 0.4% | ||||||||
Etsy Inc.(a) | 5,149 | 297,664 | ||||||
Groupon Inc.(a) | 24,003 | 32,164 | ||||||
Quotient Technology Inc.(a) | 7,614 | 68,145 | ||||||
Stitch Fix Inc., Class A(a) | 2,702 | 64,929 | ||||||
462,902 | ||||||||
IT Services — 1.5% | ||||||||
CACI International Inc., Class A(a) | 351 | 86,002 | ||||||
Cardtronics PLC, Class A(a) | 1,787 | 64,815 | ||||||
Conduent Inc.(a) | 18,847 | 61,630 | ||||||
CoreLogic Inc. | 1,790 | 81,212 | ||||||
CSG Systems International Inc. | 1,455 | 64,384 | ||||||
Euronet Worldwide Inc.(a) | 1,261 | 156,414 | ||||||
ExlService Holdings Inc.(a) | 1,919 | 143,253 | ||||||
KBR Inc. | 3,822 | 99,219 | ||||||
Limelight Networks Inc.(a) | 13,921 | 70,232 |
Security | Shares | Value | ||||||
IT Services (continued) | ||||||||
LiveRamp Holdings Inc.(a)(b) | 1,923 | $ | 68,151 | |||||
Perficient Inc.(a) | 1,476 | 60,472 | ||||||
Perspecta Inc. | 3,865 | 96,509 | ||||||
Science Applications International Corp. | 1,374 | 110,099 | ||||||
Sykes Enterprises Inc.(a) | 5,399 | 171,040 | ||||||
TTEC Holdings Inc. | 1,694 | 63,406 | ||||||
Virtusa Corp.(a) | 3,756 | 165,677 | ||||||
WEX Inc.(a) | 2,301 | 430,839 | ||||||
1,993,354 | ||||||||
Leisure Products — 0.5% | ||||||||
Brunswick Corp./DE. | 1,784 | 94,909 | ||||||
Callaway Golf Co. | 6,441 | 109,368 | ||||||
Johnson Outdoors Inc., Class A | 1,158 | 72,271 | ||||||
Malibu Boats Inc., Class A(a) | 2,695 | 118,418 | ||||||
Mattel Inc.(a) | 16,892 | 199,157 | ||||||
YETI Holdings Inc.(a) | 2,939 | 88,905 | ||||||
683,028 | ||||||||
Life Sciences Tools & Services — 1.0% | ||||||||
Bio-Techne Corp. | 1,111 | 209,857 | ||||||
Bruker Corp. | 5,752 | 250,557 | ||||||
Luminex Corp. | 3,184 | 78,836 | ||||||
Medpace Holdings Inc.(a) | 775 | 69,703 | ||||||
NeoGenomics Inc.(a) | 4,632 | 131,224 | ||||||
PRA Health Sciences Inc.(a)(b) | 1,913 | 180,205 | ||||||
Repligen Corp.(a) | 2,765 | 236,684 | ||||||
Syneos Health Inc.(a) | 1,345 | 85,206 | ||||||
1,242,272 | ||||||||
Machinery — 4.9% | ||||||||
AGCO Corp. | 2,681 | 162,013 | ||||||
Alamo Group Inc. | 883 | 97,810 | ||||||
Albany International Corp., Class A | 998 | 63,942 | ||||||
Allison Transmission Holdings Inc. | 8,032 | 326,099 | ||||||
Altra Industrial Motion Corp. | 2,132 | 64,216 | ||||||
Astec Industries Inc. | 2,082 | 78,179 | ||||||
Barnes Group Inc. | 3,167 | 170,068 | ||||||
Chart Industries Inc.(a) | 1,807 | 102,854 | ||||||
Crane Co. | 2,006 | 136,308 | ||||||
Donaldson Co. Inc. | 6,764 | 304,921 | ||||||
Douglas Dynamics Inc. | 1,689 | 73,522 | ||||||
Enerpac Tool Group Corp. | 4,254 | 90,908 | ||||||
ESCO Technologies Inc. | 2,568 | 233,482 | ||||||
Evoqua Water Technologies Corp.(a) | 4,540 | 95,204 | ||||||
Federal Signal Corp. | 3,627 | 105,183 | ||||||
Franklin Electric Co. Inc. | 3,927 | 202,987 | ||||||
Gardner Denver Holdings Inc.(a)(b) | 4,866 | 159,556 | ||||||
Gates Industrial Corp. PLC(a)(b) | 5,814 | 60,814 | ||||||
Graco Inc. | 5,479 | 270,224 | ||||||
Hillenbrand Inc. | 2,759 | 64,561 | ||||||
ITT Inc. | 5,110 | 307,366 | ||||||
John Bean Technologies Corp. | 961 | 93,082 | ||||||
Kennametal Inc. | 2,414 | 67,109 | ||||||
Lincoln Electric Holdings Inc. | 2,470 | 202,268 | ||||||
Lindsay Corp. | 1,309 | 129,630 | ||||||
Manitowoc Co. Inc. (The)(a)(b) | 5,783 | 72,114 | ||||||
Meritor Inc.(a) | 3,655 | 82,932 | ||||||
Navistar International Corp.(a) | 3,868 | 140,447 | ||||||
Nordson Corp. | 1,063 | 154,454 | ||||||
Oshkosh Corp. | 5,515 | 397,907 | ||||||
Proto Labs Inc.(a)(b) | 1,329 | 116,474 |
S c h e d u l e o f I n v e s t m e n t s | 39 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Rexnord Corp. | 2,866 | $ | 83,573 | |||||
SPX Corp.(a) | 1,460 | 61,218 | ||||||
Tennant Co. | 1,383 | 98,940 | ||||||
Terex Corp. | 3,097 | 68,165 | ||||||
Toro Co. (The) | 5,744 | 410,294 | ||||||
Trinity Industries Inc. | 3,445 | 70,106 | ||||||
Wabash National Corp. | 5,970 | 65,551 | ||||||
Watts Water Technologies Inc., Class A | 3,801 | 356,952 | ||||||
Welbilt Inc.(a)(b) | 8,770 | 115,939 | ||||||
Woodward Inc. | 3,693 | 381,118 | ||||||
6,338,490 | ||||||||
Media — 1.4% | ||||||||
Cable One Inc. | 288 | 453,030 | ||||||
Cardlytics Inc.(a) | 734 | 58,272 | ||||||
Clear Channel Outdoor Holdings Inc.(a) | 27,532 | 56,991 | ||||||
Gray Television Inc.(a) | 4,347 | 82,245 | ||||||
Hemisphere Media Group Inc.(a) | 5,307 | 67,027 | ||||||
Iheartmedia Inc., Class A(a) | 3,895 | 58,854 | ||||||
John Wiley & Sons Inc., Class A | 5,217 | 194,020 | ||||||
Liberty Latin America Ltd., Class C, NVS(a)(b) | 4,447 | 67,550 | ||||||
Loral Space & Communications Inc.(a) | 2,063 | 64,077 | ||||||
New York Times Co. (The), Class A | 8,293 | 310,656 | ||||||
Nexstar Media Group Inc., Class A | 1,682 | 193,396 | ||||||
Sinclair Broadcast Group Inc., Class A | 2,473 | 57,398 | ||||||
TEGNA Inc. | 8,442 | 120,890 | ||||||
1,784,406 | ||||||||
Metals & Mining — 1.2% | ||||||||
Alcoa Corp.(a) | 10,523 | 145,954 | ||||||
Cleveland-Cliffs Inc.(b) | 12,030 | 69,894 | ||||||
Commercial Metals Co. | 4,799 | 87,630 | ||||||
Compass Minerals International Inc. | 2,490 | 135,830 | ||||||
Reliance Steel & Aluminum Co. | 4,913 | 502,551 | ||||||
Royal Gold Inc. | 4,864 | 469,230 | ||||||
Schnitzer Steel Industries Inc., Class A | 9,926 | 163,580 | ||||||
1,574,669 | ||||||||
Mortgage Real Estate Investment — 0.7% | ||||||||
Apollo Commercial Real Estate Finance Inc. | 4,487 | 72,689 | ||||||
Arbor Realty Trust Inc. | 5,077 | 61,635 | ||||||
Chimera Investment Corp. | 4,322 | 84,927 | ||||||
Granite Point Mortgage Trust Inc. | 4,829 | 79,292 | ||||||
KKR Real Estate Finance Trust Inc. | 5,770 | 113,323 | ||||||
New Residential Investment Corp. | 4,395 | 68,386 | ||||||
Ready Capital Corp. | 4,557 | 66,077 | ||||||
Redwood Trust Inc. | 5,753 | 98,261 | ||||||
Starwood Property Trust Inc. | 12,899 | 286,100 | ||||||
930,690 | ||||||||
Multi-Utilities — 0.6% | ||||||||
Avista Corp. | 10,755 | 507,098 | ||||||
MDU Resources Group Inc. | 9,310 | 258,167 | ||||||
765,265 | ||||||||
Multiline Retail — 0.2% | ||||||||
Big Lots Inc. | 3,112 | 49,200 | ||||||
Macy's Inc. | 15,156 | 200,514 | ||||||
Ollie's Bargain Outlet Holdings Inc.(a) | 1,332 | 67,759 | ||||||
317,473 | ||||||||
Oil, Gas & Consumable Fuels — 1.6% | ||||||||
Antero Midstream Corp. | 16,896 | 73,667 | ||||||
Callon Petroleum Co.(a) | 25,713 | 58,369 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Cimarex Energy Co. | 4,624 | $ | 152,823 | |||||
Clean Energy Fuels Corp.(a) | 34,136 | 77,147 | ||||||
CNX Resources Corp.(a)(b) | 11,693 | 62,090 | ||||||
Delek U.S. Holdings Inc. | 4,060 | 86,803 | ||||||
Denbury Resources Inc.(a) | 80,415 | 60,504 | ||||||
EnLink Midstream LLC | 16,031 | 61,078 | ||||||
EQT Corp. | 13,013 | 76,386 | ||||||
Equitrans Midstream Corp. | 9,714 | 68,581 | ||||||
Gran Tierra Energy Inc.(a) | 82,060 | 62,940 | ||||||
Kosmos Energy Ltd. | 26,330 | 80,306 | ||||||
Murphy Oil Corp. | 4,566 | 86,069 | ||||||
Oasis Petroleum Inc.(a)(b) | 34,566 | 56,515 | ||||||
Parsley Energy Inc., Class A. | 11,655 | 156,177 | ||||||
PBF Energy Inc., Class A. | 4,577 | 102,479 | ||||||
PDC Energy Inc.(a) | 3,621 | 68,908 | ||||||
QEP Resources Inc. | 27,350 | 61,538 | ||||||
Renewable Energy Group Inc.(a) | 2,890 | 76,440 | ||||||
SM Energy Co. | 8,495 | 55,812 | ||||||
Southwestern Energy Co.(a)(b) | 45,719 | 64,921 | ||||||
Tallgrass Energy LP, Class A | 5,583 | 123,217 | ||||||
Texas Pacific Land Trust . | 125 | 86,975 | ||||||
World Fuel Services Corp. | 4,263 | 120,558 | ||||||
WPX Energy Inc.(a) | 9,618 | 89,736 | ||||||
2,070,039 | ||||||||
Paper & Forest Products — 0.4% | ||||||||
Boise Cascade Co. | 7,328 | 259,998 | ||||||
Domtar Corp. | 5,691 | 163,730 | ||||||
Louisiana-Pacific Corp. | 4,967 | 141,311 | ||||||
565,039 | ||||||||
Personal Products — 0.3% | ||||||||
Edgewell Personal Care Co.(a) | 2,583 | 78,420 | ||||||
Herbalife Nutrition Ltd.(a) | 4,365 | 141,252 | ||||||
Medifast Inc. | 1,239 | 102,973 | ||||||
Nu Skin Enterprises Inc., Class A | 2,454 | 60,172 | ||||||
382,817 | ||||||||
Pharmaceuticals — 1.8% | ||||||||
Aerie Pharmaceuticals Inc.(a)(b) | 3,849 | 67,358 | ||||||
Arvinas Holding Co. LLC(a) | 1,379 | 64,992 | ||||||
Axsome Therapeutics Inc.(a) | 1,363 | 106,314 | ||||||
Catalent Inc.(a) | 6,941 | 357,670 | ||||||
Corcept Therapeutics Inc.(a) | 5,353 | 67,555 | ||||||
Cymabay Therapeutics Inc.(a) | 42,037 | 69,782 | ||||||
Endo International PLC(a) | 11,587 | 63,960 | ||||||
Horizon Therapeutics PLC(a) | 7,781 | 266,266 | ||||||
Intersect ENT Inc.(a) | 5,062 | 120,779 | ||||||
Intra-Cellular Therapies Inc.(a)(b) | 3,753 | 79,188 | ||||||
MyoKardia Inc.(a)(b) | 2,099 | 133,056 | ||||||
Nektar Therapeutics(a) | 7,641 | 159,009 | ||||||
Pacira BioSciences Inc.(a)(b) | 1,519 | 65,894 | ||||||
Phibro Animal Health Corp., Class A | 3,114 | 78,629 | ||||||
Reata Pharmaceuticals Inc., Class A(a)(b) | 933 | 181,702 | ||||||
Revance Therapeutics Inc.(a) | 3,503 | 80,989 | ||||||
Supernus Pharmaceuticals Inc.(a) | 3,261 | 58,665 | ||||||
Theravance Biopharma Inc.(a) | 3,998 | 97,351 | ||||||
Tilray Inc., Class 2 (a)(b) | 4,258 | 61,443 | ||||||
Tricida Inc.(a) | 2,049 | 65,117 | ||||||
Zogenix Inc.(a) | 2,433 | 61,020 | ||||||
2,306,739 |
40 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares ® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Professional Services — 1.2% | ||||||||
ASGN Inc.(a) | 1,929 | $ | 97,820 | |||||
Exponent Inc. | 1,485 | 109,370 | ||||||
FTI Consulting Inc.(a) | 2,357 | 265,375 | ||||||
Heidrick & Struggles International Inc. | 2,611 | 58,225 | ||||||
Huron Consulting Group Inc.(a)(b | 1,117 | 66,283 | ||||||
ICF International Inc. | 1,657 | 125,899 | ||||||
Insperity Inc. | 2,105 | 141,603 | ||||||
Kelly Services Inc., Class A, NVS | 6,890 | 114,443 | ||||||
Korn Ferry | 4,333 | 151,568 | ||||||
TriNet Group Inc.(a) | 3,503 | 185,168 | ||||||
TrueBlue Inc.(a) | 18,235 | 271,337 | ||||||
1,587,091 | ||||||||
Real Estate Management & Development — 0.9% | ||||||||
Cushman & Wakefield PLC(a) | 10,905 | 198,362 | ||||||
Howard Hughes Corp. (The)(a) | 3,972 | 428,499 | ||||||
Kennedy-Wilson Holdings Inc. | 3,928 | 79,385 | ||||||
Marcus & Millichap Inc.(a) | 5,429 | 173,511 | ||||||
Realogy Holdings Corp. | 6,646 | 61,609 | ||||||
Redfin Corp.(a) | 2,468 | 66,784 | ||||||
St. Joe Co. (The)(a)(b) | 4,178 | 82,181 | ||||||
Tejon Ranch Co.(a) | 4,198 | 63,306 | ||||||
1,153,637 | ||||||||
Road & Rail — 0.7% | ||||||||
ArcBest Corp. | 3,088 | 61,173 | ||||||
Avis Budget Group Inc.(a) | 3,978 | 128,788 | ||||||
Hertz Global Holdings Inc.(a) | 5,303 | 67,825 | ||||||
Landstar System Inc. | 2,070 | 209,008 | ||||||
Ryder System Inc. | 6,475 | 246,309 | ||||||
Schneider National Inc., Class B | 6,977 | 124,958 | ||||||
Werner Enterprises Inc. | 1,995 | 67,032 | ||||||
905,093 | ||||||||
Semiconductors & Semiconductor Equipment — 3.2% | ||||||||
Brooks Automation Inc. | 2,381 | 82,168 | ||||||
Cabot Microelectronics Corp. | 1,596 | 222,291 | ||||||
Cirrus Logic Inc.(a) | 3,680 | 252,595 | ||||||
Cree Inc.(a)(b) | 6,024 | 269,454 | ||||||
Cypress Semiconductor Corp. | 15,250 | 352,123 | ||||||
Enphase Energy Inc.(a) | 3,644 | 178,447 | ||||||
Entegris Inc. | 6,463 | 344,607 | ||||||
First Solar Inc.(a) | 4,785 | 219,009 | ||||||
Ichor Holdings Ltd.(a) | 2,452 | 70,912 | ||||||
Inphi Corp.(a) | 1,294 | 96,610 | ||||||
Kulicke & Soffa Industries Inc. | 7,486 | 170,905 | ||||||
Lattice Semiconductor Corp.(a) | 4,885 | 87,686 | ||||||
Mellanox Technologies Ltd.(a) | 2,035 | 243,020 | ||||||
MKS Instruments Inc. | 1,545 | 154,794 | ||||||
Monolithic Power Systems Inc. | 839 | 133,099 | ||||||
Onto Innovation Inc.(a) | 3,448 | 105,405 | ||||||
Power Integrations Inc. | 1,409 | 122,653 | ||||||
Rambus Inc.(a) | 6,262 | 87,543 | ||||||
Semtech Corp.(a) | 2,445 | 96,553 | ||||||
Silicon Laboratories Inc.(a) | 2,152 | 190,839 | ||||||
SolarEdge Technologies Inc.(a) | 1,675 | 208,906 | ||||||
Synaptics Inc.(a) . . | 946 | 62,483 | ||||||
Ultra Clean Holdings Inc.(a) | 2,969 | 62,082 | ||||||
Universal Display Corp. | 1,672 | 265,497 | ||||||
4,079,681 | ||||||||
Software — 7.0% | ||||||||
2U Inc.(a)(b) | 3,070 | 72,176 |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
8x8 Inc.(a) | 3,670 | $ | 67,895 | |||||
ACI Worldwide Inc.(a) | 8,758 | 244,086 | ||||||
Alteryx Inc., Class A(a) | 1,734 | 242,101 | ||||||
Anaplan Inc.(a) | 3,590 | 161,335 | ||||||
Appian Corp.(a)(b) | 1,252 | 55,276 | ||||||
Aspen Technology Inc.(a) | 3,214 | 342,323 | ||||||
Avaya Holdings Corp.(a)(b) | 7,361 | 95,399 | ||||||
Benefitfocus Inc.(a) | 4,238 | 52,890 | ||||||
Blackbaud Inc. . . . . | 2,890 | 195,942 | ||||||
Blackline Inc.(a) | 3,090 | 193,341 | ||||||
Bottomline Technologies DE Inc.(a) | 2,007 | 88,870 | ||||||
Box Inc., Class A(a) | 4,517 | 75,660 | ||||||
Ceridian HCM Holding Inc.(a) | 3,121 | 220,748 | ||||||
Cloudera Inc.(a)(b) | 7,378 | 65,664 | ||||||
Cornerstone OnDemand Inc.(a) | 1,460 | 59,904 | ||||||
Coupa Software Inc.(a) | 2,567 | 384,408 | ||||||
Elastic NV(a) | 1,307 | 96,535 | ||||||
Envestnet Inc.(a) | 2,657 | 200,550 | ||||||
Everbridge Inc.(a) | 1,210 | 127,849 | ||||||
Fair Isaac Corp.(a) | 1,733 | 651,660 | ||||||
FireEye Inc.(a) | 5,695 | 75,373 | ||||||
Five9 Inc.(a) | 3,006 | 219,528 | ||||||
ForeScout Technologies Inc.(a) | 2,231 | 72,597 | ||||||
HubSpot Inc.(a)(b) | 2,010 | 360,695 | ||||||
Instructure Inc.(a) | 1,506 | 73,433 | ||||||
LivePerson Inc.(a) | 3,031 | 80,200 | ||||||
LogMeIn Inc. . | 2,529 | 215,559 | ||||||
Manhattan Associates Inc.(a) | 2,646 | 178,235 | ||||||
Mimecast Ltd.(a) | 4,024 | 159,310 | ||||||
Model N Inc.(a) | 2,594 | 75,226 | ||||||
New Relic Inc.(a) | 3,136 | 176,431 | ||||||
Nuance Communications Inc.(a) . | 11,294 | 244,176 | ||||||
Nutanix Inc., Class A(a) | 7,813 | 186,262 | ||||||
Paylocity Holding Corp.(a) . | 2,566 | 332,348 | ||||||
Progress Software Corp . . . | 3,628 | 135,288 | ||||||
Proofpoint Inc.(a) . | 1,785 | 190,370 | ||||||
PROS Holdings Inc.(a) . | 2,157 | 98,769 | ||||||
Q2 Holdings Inc.(a) . . . . | 837 | 63,085 | ||||||
Qualys Inc.(a)(b) . . | 1,614 | 129,411 | ||||||
Rapid7 Inc.(a) . . . . | 3,156 | 146,123 | ||||||
SailPoint Technologies Holding Inc.(a)(b) | 3,125 | 79,125 | ||||||
Smartsheet Inc., Class A(a) | 4,383 | 202,933 | ||||||
SPS Commerce Inc.(a) | 2,054 | 108,040 | ||||||
SVMK Inc.(a) | 4,225 | 77,022 | ||||||
Teradata Corp.(a)(b) . . . . | 18,395 | 366,796 | ||||||
Trade Desk Inc. (The), Class A(a)(b) . . . | 1,330 | 382,043 | ||||||
Varonis Systems Inc.(a) | 1,000 | 80,220 | ||||||
Verint Systems Inc.(a) . | 1,318 | 72,332 | ||||||
Workiva Inc.(a) . . . | 2,691 | 115,013 | ||||||
Yext Inc.(a)(b) | 4,467 | 67,720 | ||||||
Zendesk Inc.(a) . . . | 4,972 | 394,329 | ||||||
Zscaler Inc.(a)(b) . . | 2,484 | 129,143 | ||||||
Zuora Inc., Class A(a)(b) | 4,835 | 64,015 | ||||||
9,045,762 | ||||||||
Specialty Retail — 2.5% | ||||||||
Aaron's Inc . . | 3,883 | 152,718 | ||||||
American Eagle Outfitters Inc . . . | 11,563 | 148,931 | ||||||
America's Car-Mart Inc./TX(a) . . . | 639 | 65,670 | ||||||
Asbury Automotive Group Inc.(a) | 826 | 73,217 | ||||||
AutoNation Inc.(a) | 2,889 | 123,447 |
S c h e d u l e o f I n v e s t m e n t s | 41 |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
Carvana Co.(a)(b) | 1,598 | $ | 132,490 | |||||
Children's Place Inc. (The) | 1,054 | 60,710 | ||||||
Designer Brands Inc. , Class A | 5,147 | 69,536 | ||||||
Five Below Inc.(a) | 2,249 | 218,041 | ||||||
Floor & Decor Holdings Inc., Class A(a)(b) | 2,128 | 108,634 | ||||||
Foot Locker Inc. | 5,088 | 184,440 | ||||||
Genesco Inc.(a) | 1,936 | 66,618 | ||||||
Group 1 Automotive Inc . . . . | 856 | 72,957 | ||||||
Haverty Furniture Companies Inc. | 3,629 | 61,040 | ||||||
Hibbett Sports Inc.(a) | 3,122 | 60,941 | ||||||
L Brands Inc. | 8,818 | 190,998 | ||||||
Lithia Motors Inc., Class A | 1,163 | 138,583 | ||||||
MarineMax Inc.(a) | 4,534 | 76,761 | ||||||
Monro Inc. | 1,837 | 103,092 | ||||||
Murphy USA Inc.(a)(b) | 1,960 | 191,100 | ||||||
National Vision Holdings Inc.(a) | 3,441 | 119,816 | ||||||
Office Depot Inc. | 30,811 | 72,406 | ||||||
Rent-A-Center Inc./TX | 3,022 | 64,338 | ||||||
RH(a) . . | 627 | 113,738 | ||||||
Sally Beauty Holdings Inc.(a) | 5,505 | 68,482 | ||||||
Signet Jewelers Ltd. | 2,941 | 68,584 | ||||||
Sleep Number Corp.(a) | 1,331 | 58,631 | ||||||
Williams-Sonoma Inc. | 4,345 | 271,085 | ||||||
Winmark Corp. . . . | 350 | 70,000 | ||||||
Zumiez Inc.(a) | 2,301 | 61,045 | ||||||
3,268,049 | ||||||||
Technology Hardware, Storage & Peripherals — 0.2% | ||||||||
NCR Corp.(a) | 5,480 | 138,096 | ||||||
Pure Storage Inc., Class A(a) | 6,859 | 104,668 | ||||||
242,764 | ||||||||
Textiles, Apparel & Luxury Goods — 1.2% | ||||||||
Carter's Inc . | 994 | 90,921 | ||||||
Columbia Sportswear Co. | 2,632 | 213,982 | ||||||
Crocs Inc.(a) | 3,800 | 99,446 | ||||||
Deckers Outdoor Corp.(a)(b) | 1,838 | 319,444 | ||||||
Fossil Group Inc.(a)(b) . . | 11,839 | 54,341 | ||||||
Kontoor Brands Inc.(a) | 3,209 | 108,272 | ||||||
Levi Strauss & Co., Class A | 5,750 | 97,693 | ||||||
Movado Group Inc. | 4,401 | 64,695 | ||||||
Oxford Industries Inc. | 1,095 | 66,127 | ||||||
Skechers U.S.A. Inc., Class A(a) | 2,362 | 78,135 | ||||||
Steven Madden Ltd. | 1,911 | 62,490 | ||||||
Unifi Inc.(a) | 3,066 | 65,520 | ||||||
Wolverine World Wide Inc. | 6,381 | 167,756 | ||||||
1,488,822 | ||||||||
Thrifts & Mortgage Finance — 1.4% | ||||||||
Columbia Financial Inc.(a) | 7,775 | 120,668 | ||||||
Federal Agricultural Mortgage Corp., Class C, NVS | 1,552 | 116,493 | ||||||
First Defiance Financial Corp. | 3,158 | 75,524 | ||||||
HomeStreet Inc. | 3,049 | 82,598 | ||||||
Meta Financial Group Inc. | 2,109 | 69,281 | ||||||
MGIC Investment Corp. | 22,818 | 274,501 | ||||||
Mr Cooper Group Inc.(a) | 5,705 | 73,195 | ||||||
New York Community Bancorp. Inc. | 27,263 | 294,713 | ||||||
OceanFirst Financial Corp. | 10,003 | 204,461 |
Security | Shares | Value | ||||||
Thrifts & Mortgage Finance (continued) | ||||||||
Provident Financial Services Inc. . . . | 3,248 | 64,895 | ||||||
TFS Financial Corp. . | 8,748 | 178,809 | ||||||
Washington Federal Inc. | 5,264 | 157,867 | ||||||
WSFS Financial Corp. . . | 2,670 | 92,008 | ||||||
1,805,013 | ||||||||
Trading Companies & Distributors — 1.1% | ||||||||
Air Lease Corp. . | 2,583 | 99,084 | ||||||
Aircastle Ltd | 3,639 | 115,902 | ||||||
Beacon Roofing Supply Inc.(a) | 3,201 | 95,070 | ||||||
Foundation Building Materials Inc.(a) | 4,067 | 63,445 | ||||||
GATX Corp. . | 2,294 | 164,090 | ||||||
GMS Inc.(a) | 2,612 | 59,684 | ||||||
Herc Holdings Inc.(a) | 1,702 | 62,429 | ||||||
Rush Enterprises Inc., Class A | 1,715 | 71,893 | ||||||
SiteOne Landscape Supply Inc.(a) | 2,216 | 219,938 | ||||||
Triton International Ltd. . | 3,365 | 115,655 | ||||||
Watsco Inc. . | 1,059 | 166,242 | ||||||
WESCO International Inc.(a) | 4,416 | 179,157 | ||||||
1,412,589 | ||||||||
Transportation Infrastructure — 0.2% | ||||||||
Macquarie Infrastructure Corp. | 7,040 | 276,320 | ||||||
Wireless Telecommunication Services — 0.2% | ||||||||
Boingo Wireless Inc.(a) | 5,821 | 73,752 | ||||||
Gogo Inc.(a)(b) | 14,484 | 52,287 | ||||||
Shenandoah Telecommunications Co. | 3,080 | 136,845 | ||||||
262,884 | ||||||||
Total Common Stocks — 99.6% | ||||||||
(Cost: $134,736,570) | 128,553,036 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 4.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 5,388,046 | 5,391,818 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(d)(e) | 131,000 | 131,000 | ||||||
5,522,818 | ||||||||
Total Short-Term Investments — 4.3% | ||||||||
(Cost: $5,521,088) | 5,522,818 | |||||||
Total Investments in Securities — 103.9% | ||||||||
(Cost: $140,257,658) | 134,075,854 | |||||||
Other Assets, Less Liabilities — (3.9)% | (5,044,682 | ) | ||||||
Net Assets — 100.0% | $ | 129,031,172 |
(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 cash collateral received from loaned securities. |
42 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® ESG MSCI USA Small-Cap ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 3,242,665 | 2,145,381 | 5,388,046 | $ | 5,391,818 | $ | 17,849 | (b) | $ | (159 | ) | $ | 1,441 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 66,000 | 65,000 | 131,000 | 131,000 | 1,712 | — | — | |||||||||||||||||||||
$ | 5,522,818 | $ | 19,561 | $ | (159 | ) | $ | 1,441 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 128,549,959 | $ | — | $ | 3,077 | $ | 128,553,036 | ||||||||
Money Market Funds | 5,522,818 | — | — | 5,522,818 | ||||||||||||
$ | 134,072,777 | $ | — | $ | 3,077 | $ | 134,075,854 |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 43 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Global Impact ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Australia — 0.9% | ||||||||
CSL Ltd. | 3,172 | $ | 632,850 | |||||
GPT Group (The) | 27,066 | 100,866 | ||||||
733,716 | ||||||||
Austria — 0.3% | ||||||||
Verbund AG | 4,420 | 208,189 | ||||||
Belgium — 4.1% | ||||||||
Colruyt SA | 5,902 | 271,121 | ||||||
Umicore SA(a) | 74,698 | 3,099,104 | ||||||
3,370,225 | ||||||||
Canada — 2.0% | ||||||||
First Capital Real Estate Investment Trust | 5,356 | 79,880 | ||||||
West Fraser Timber Co. Ltd. | 41,496 | 1,549,357 | ||||||
1,629,237 | ||||||||
Chile — 1.5% | ||||||||
Aguas Andinas SA, Class A | 186,680 | 63,721 | ||||||
Empresas CMPC SA | 601,016 | 1,208,875 | ||||||
1,272,596 | ||||||||
China — 8.5% | ||||||||
3SBio Inc.(b)(c) | 26,000 | 26,957 | ||||||
BAIC BluePark New Energy Technology Co. Ltd., Class A(c) . . | 307,500 | 282,857 | ||||||
Beijing Enterprises Water Group Ltd. | 1,456,000 | 676,336 | ||||||
BYD Co. Ltd., Class A | 59,800 | 559,229 | ||||||
BYD Co. Ltd., Class H(a) | 195,000 | 1,193,563 | ||||||
China Conch Venture Holdings Ltd. | 13,500 | 65,655 | ||||||
China Everbright International Ltd. | 806,000 | 536,778 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 806,000 | 421,976 | ||||||
China Medical System Holdings Ltd. | 52,000 | 64,057 | ||||||
China Mengniu Dairy Co. Ltd. | 156,000 | 559,498 | ||||||
China Railway Signal & Communication Corp. Ltd., Class H(b) | 416,000 | 213,523 | ||||||
Contemporary Amperex Technology Co. Ltd., Class A | 5,200 | 100,925 | ||||||
CSPC Pharmaceutical Group Ltd. | 52,000 | 118,506 | ||||||
LONGi Green Energy Technology Co. Ltd., Class A | 20,800 | 91,351 | ||||||
NIO Inc., ADR(a)(c) | 367,640 | 1,518,353 | ||||||
Sino Biopharmaceutical Ltd. | 130,000 | 188,168 | ||||||
SOHO China Ltd. | 78,000 | 28,225 | ||||||
Tus Environmental Science And Technology Development Co. Ltd., Class A | 13,000 | 18,356 | ||||||
Wuxi Lead Intelligent Equipment Co. Ltd., Class A | 2,600 | 20,885 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class A | 36,400 | 54,781 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H | 20,904 | 20,762 | ||||||
Xinyi Solar Holdings Ltd. | 260,000 | 205,850 | ||||||
6,966,591 | ||||||||
Denmark — 5.6% | ||||||||
Genmab A/S(c) | 208 | 46,534 | ||||||
H Lundbeck A/S | 2,782 | 95,280 | ||||||
Novo Nordisk A/S, Class B | 29,120 | 1,694,171 | ||||||
Vestas Wind Systems A/S | 29,328 | 2,799,527 | ||||||
4,635,512 | ||||||||
France — 7.6% | ||||||||
Alstom SA | 37,726 | 1,843,670 | ||||||
Covivio | 2,028 | 213,855 | ||||||
Danone SA | 20,748 | 1,452,219 | ||||||
Gecina SA | 624 | 110,149 | ||||||
Ipsen SA | 1,482 | 95,395 | ||||||
Klepierre SA | 10,192 | 302,500 |
Security | Shares | Value | ||||||
France (continued) | ||||||||
Suez . | 142,142 | $ | 2,229,620 | |||||
6,247,408 | ||||||||
Germany — 2.3% | ||||||||
KION Group AG | 10,816 | 572,656 | ||||||
Vonovia SE | 24,180 | 1,290,310 | ||||||
1,862,966 | ||||||||
Hong Kong — 2.9% | ||||||||
Henderson Land Development Co. Ltd | 38,000 | 174,322 | ||||||
MTR Corp. Ltd. | 52,000 | 292,594 | ||||||
Swire Properties Ltd. | 31,200 | 92,282 | ||||||
WH Group Ltd.(b) | 1,833,000 | 1,862,860 | ||||||
2,422,058 | ||||||||
India — 0.3% | ||||||||
Bandhan Bank Ltd.(b) | 4,212 | 22,383 | ||||||
Godrej Consumer Products Ltd. | 3,302 | 25,645 | ||||||
Hindustan Unilever Ltd. | 4,576 | 137,897 | ||||||
Marico Ltd. | 5,876 | 24,325 | ||||||
Nestle India Ltd. | 130 | 28,423 | ||||||
238,673 | ||||||||
Indonesia — 0.0% | ||||||||
Unilever Indonesia Tbk PT | 67,600 | 32,157 | ||||||
Ireland — 1.1% | ||||||||
Kingspan Group PLC | 14,716 | 922,201 | ||||||
Japan — 13.2% | ||||||||
Asahi Intecc Co. Ltd. | 2,600 | 62,333 | ||||||
Central Japan Railway Co. | 13,500 | 2,225,282 | ||||||
Chugai Pharmaceutical Co. Ltd. | 2,600 | 282,381 | ||||||
Daiichi Sankyo Co. Ltd. | 9,200 | 562,073 | ||||||
East Japan Railway Co. | 43,900 | 3,385,752 | ||||||
Japan Retail Fund Investment Corp. | 104 | 197,751 | ||||||
NH Foods Ltd. | 28,600 | 1,079,145 | ||||||
Nippon Prologis REIT Inc. | 52 | 141,106 | ||||||
Nisshin Seifun Group Inc. | 20,800 | 352,114 | ||||||
Nissin Foods Holdings Co. Ltd. | 2,800 | 220,646 | ||||||
Nomura Real Estate Master Fund Inc. | 78 | 123,871 | ||||||
Ono Pharmaceutical Co. Ltd. | 10,400 | 213,081 | ||||||
Shionogi & Co. Ltd. | 3,500 | 189,658 | ||||||
Sysmex Corp. | 2,600 | 166,777 | ||||||
Terumo Corp. | 10,400 | 335,338 | ||||||
TOTO Ltd. | 14,100 | 535,294 | ||||||
Toyo Suisan Kaisha Ltd. | 10,400 | 412,182 | ||||||
Unicharm Corp. | 13,000 | 421,583 | ||||||
10,906,367 | ||||||||
Malaysia — 0.0% | ||||||||
PPB Group Bhd. | 7,800 | 33,495 | ||||||
Mexico — 0.3% | ||||||||
Gruma SAB de CV, Series B | 13,260 | 126,635 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A. | 70,200 | 132,163 | ||||||
258,798 | ||||||||
Norway — 0.5% | ||||||||
Mowi ASA | 19,136 | 399,921 | ||||||
Saudi Arabia — 0.1% | ||||||||
Almarai Co. JSC | 6,006 | 73,324 | ||||||
Singapore — 1.1% | ||||||||
CapitaLand Commercial Trust | 52,695 | 70,225 |
44 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Global Impact ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Singapore (continued) | ||||||||
CapitaLand Mall Trust | 83,200 | $ | 135,318 | |||||
Keppel Corp. Ltd. | 127,400 | 578,718 | ||||||
Mapletree Commercial Trust | 57,200 | 86,064 | ||||||
870,325 | ||||||||
South Korea — 1.6% | ||||||||
Samsung SDI Co. Ltd. | 5,512 | 1,338,855 | ||||||
Spain — 1.2% | ||||||||
Siemens Gamesa Renewable Energy SA | 60,632 | 967,382 | ||||||
Sweden — 1.4% | ||||||||
Essity AB, Class B | 38,818 | 1,151,515 | ||||||
Switzerland — 0.4% | ||||||||
Geberit AG, Registered | 702 | 347,392 | ||||||
Taiwan — 1.3% | ||||||||
Standard Foods Corp. | 26,000 | 58,303 | ||||||
Taiwan High Speed Rail Corp. | 104,000 | 118,496 | ||||||
Uni-President Enterprises Corp. | 364,000 | 879,962 | ||||||
1,056,761 | ||||||||
Thailand — 0.5% | ||||||||
B Grimm Power PCL, NVDR | 86,900 | 124,615 | ||||||
BTS Group Holdings PCL, NVDR | 444,600 | 153,578 | ||||||
Global Power Synergy PCL, NVDR | 80,600 | 160,919 | ||||||
439,112 | ||||||||
United Kingdom — 9.8% | ||||||||
Berkeley Group Holdings PLC | 39,260 | 2,383,980 | ||||||
Johnson Matthey PLC | 104,520 | 3,352,272 | ||||||
Pearson PLC | 322,998 | 2,300,466 | ||||||
8,036,718 | ||||||||
United States — 31.8% | ||||||||
AbbVie Inc. | 38,792 | 3,324,862 | ||||||
ABIOMED Inc.(c) | 728 | 109,389 | ||||||
Acuity Brands Inc.(a) | 5,512 | 566,964 | ||||||
Amgen Inc. | 13,130 | 2,622,455 | ||||||
Baxter International Inc. | 8,866 | 740,045 | ||||||
BioMarin Pharmaceutical Inc.(c) | 2,782 | 251,409 | ||||||
Citrix Systems Inc. | 7,332 | 758,056 | ||||||
Colgate-Palmolive Co. | 13,520 | 913,546 | ||||||
DexCom Inc.(a)(c) | 702 | 193,752 | ||||||
Digital Realty Trust Inc. | 9,204 | 1,105,492 | ||||||
Gilead Sciences Inc. | 48,542 | 3,366,873 | ||||||
Healthpeak Properties Inc. | 16,536 | 523,199 | ||||||
Hormel Foods Corp | 11,908 | 495,373 |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Insulet Corp.(c) | 442 | $ | 83,967 | |||||
Jazz Pharmaceuticals PLC(c) | 2,288 | 262,159 | ||||||
Kimberly-Clark Corp. | 16,536 | 2,169,358 | ||||||
Procter & Gamble Co. (The) | 29,068 | 3,291,370 | ||||||
Regeneron Pharmaceuticals Inc.(c) | 1,664 | 739,764 | ||||||
Sarepta Therapeutics Inc.(c) | 468 | 53,572 | ||||||
Tesla Inc.(c) | 4,238 | 2,830,942 | ||||||
Vertex Pharmaceuticals Inc.(c) | 2,288 | 512,581 | ||||||
VMware Inc., Class A(c) | 2,704 | 325,886 | ||||||
Vornado Realty Trust | 8,554 | 458,323 | ||||||
Xylem Inc./NY | 6,734 | 520,808 | ||||||
26,220,145 | ||||||||
Total Common Stocks — 100.3% | ||||||||
(Cost: $78,306,736) | 82,641,639 | |||||||
Warrants | ||||||||
Thailand — 0.0% | ||||||||
BTS Group Holdings PCL (Expires 02/16/21)(c) | 28,060 | 765 | ||||||
Total Warrants — 0.0% | ||||||||
(Cost: $0). | 765 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(d)(e)(f) | 2,011,012 | 2,012,420 | ||||||
Total Short-Term Investments — 2.4% | ||||||||
(Cost: $2,011,860) | 2,012,420 | |||||||
Total Investments in Securities — 102.7% | ||||||||
(Cost: $80,318,596) | 84,654,824 | |||||||
Other Assets, Less Liabilities — (2.7)% | (2,223,099 | ) | ||||||
Net Assets — 100.0% | $ | 82,431,725 |
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Non-income producing security. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S c h e d u l e o f I n v e s t m e n t s | 45 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Global Impact ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 2,906,218 | (895,206 | ) | 2,011,012 | $ | 2,012,420 | $ | 103,607 | (b) | $ | 897 | $ | 707 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 86,000 | (86,000 | ) | — | — | 1,001 | — | — | ||||||||||||||||||||
$ | 2,012,420 | $ | 104,608 | $ | 897 | $ | 707 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
MSCI EAFE E-Mini | 1 | 03/20/20 | $ | 91 | $ | (9,921 | ) | |||||||
MSCI Emerging Markets E-Mini | 1 | 03/20/20 | 50 | (4,228 | ) | |||||||||
$ | (14,149 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 14,149 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 32,614 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (18,070 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 145,212 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
46 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Global Impact ETF |
February 29, 2020 |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 82,641,639 | $ | — | $ | — | $ | 82,641,639 | ||||||||
Warrants | 765 | — | — | 765 | ||||||||||||
Money Market Funds | 2,012,420 | — | — | 2,012,420 | ||||||||||||
$ | 84,654,824 | $ | — | $ | — | $ | 84,654,824 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (14,149 | ) | $ | — | $ | — | $ | (14,149 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S c h e d u l e o f I n v e s t m e n t s | 47 |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares ESG MSCI EAFE ETF | iShares ESG MSCI EM Leaders ETF | iShares ESG MSCI USA ETF | iShares ESG MSCI USA Leaders ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||||||||||
Unaffiliated(b) | $ | 1,577,993,539 | $ | 585,257,953 | $ | 3,345,641,301 | $ | 1,787,557,907 | ||||||||
Affiliated(c) | 3,514,290 | — | 32,468,274 | 15,332,534 | ||||||||||||
Cash | 985 | 3,300,533 | 241 | 151 | ||||||||||||
Foreign currency, at value(d) | 3,395,578 | 1,349,921 | — | — | ||||||||||||
Cash pledged: | ||||||||||||||||
Futures contracts | — | 41,000 | 690,000 | 307,000 | ||||||||||||
Foreign currency collateral pledged: | ||||||||||||||||
Futures contracts(e) | 336,305 | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 72,532,128 | 22,552,666 | 142,210,230 | 2,222,536 | ||||||||||||
Securities lending income — Affiliated | 817 | — | 4,546 | 2,865 | ||||||||||||
Variation margin on futures contracts . . | — | 14,248 | — | — | ||||||||||||
Capital shares sold | 1,164,138 | — | 1,625,664 | 160,134 | ||||||||||||
Dividends | 3,065,181 | 687,100 | 5,969,477 | 3,291,507 | ||||||||||||
Tax reclaims | 474,908 | — | — | — | ||||||||||||
Total assets | 1,662,477,869 | 613,203,421 | 3,528,609,733 | 1,808,874,634 | ||||||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 3,490,438 | — | 7,560,943 | 3,940,759 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 74,527,470 | 22,802,217 | 140,354,129 | 4,956,358 | ||||||||||||
Variation margin on futures contracts | 298,845 | — | 31,390 | 16,490 | ||||||||||||
Bank borrowings | — | 2,628,148 | — | — | ||||||||||||
Capital shares redeemed | 878,843 | — | 4,667,801 | — | ||||||||||||
Investment advisory fees | 263,053 | 50,136 | 428,438 | 152,139 | ||||||||||||
Total liabilities | 79,458,649 | 25,480,501 | 153,042,701 | 9,065,746 | ||||||||||||
NET ASSETS | $ | 1,583,019,220 | $ | 587,722,920 | $ | 3,375,567,032 | $ | 1,799,808,888 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 1,657,384,618 | $ | 638,014,637 | $ | 3,575,190,023 | $ | 1,732,669,165 | ||||||||
Accumulated earnings (loss) | (74,365,398 | ) | (50,291,717 | ) | (199,622,991 | ) | 67,139,723 | |||||||||
NET ASSETS | $ | 1,583,019,220 | $ | 587,722,920 | $ | 3,375,567,032 | $ | 1,799,808,888 | ||||||||
Shares outstanding | 25,800,000 | 12,450,000 | 51,200,000 | 34,750,000 | ||||||||||||
Net asset value | $ | 61.36 | $ | 47.21 | $ | 65.93 | $ | 51.79 |
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | |||||||||||||
Par value | None | None | None | None | |||||||||||||
(a) | Securities loaned, at value | $ | 3,221,854 | $ | — | $ | 7,353,234 | $ | 3,869,097 | ||||||||
(b) | Investments, at cost — Unaffiliated | $ | 1,617,945,799 | $ | 634,985,633 | $ | 3,537,502,488 | $ | 1,737,595,296 | ||||||||
(c) | Investments, at cost — Affiliated | $ | 3,513,802 | $ | — | $ | 33,556,394 | $ | 15,337,596 | ||||||||
(d) | Foreign currency, at cost . | $ | 3,396,188 | $ | 1,358,622 | $ | — | $ | — | ||||||||
(e) | Foreign currency collateral pledged, at cost . . | $ | 339,264 | $ | — | $ | — | $ | — |
See notes to financial statements.
48 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Statements of Assets and Liabilities (unaudited) (continued)
February 29, 2020
iShares ESG MSCI USA Small-Cap ETF | iShares MSCI Global Impact ETF | ||||||||
ASSETS | |||||||||
Investments in securities, at value (including securities on loan)(a) | |||||||||
Unaffiliated(b) | $ | 128,553,036 | $ | 82,642,404 | |||||
Affiliated(c) | 5,522,818 | 2,012,420 | |||||||
Cash | 727 | — | |||||||
Foreign currency, at value(d) . | — | 425,404 | |||||||
Cash pledged: | |||||||||
Futures contracts | — | 8,000 | |||||||
Receivables: | |||||||||
Investments sold | 6,344,913 | 6,344,673 | |||||||
Securities lending income — Affiliated | 3,168 | 6,981 | |||||||
Capital shares sold . . | 328,088 | — | |||||||
Dividends | 116,827 | 39,181 | |||||||
Tax reclaims | — | 20,881 | |||||||
Total assets | 140,869,577 | 91,499,944 | |||||||
LIABILITIES | |||||||||
Bank overdraft | — | 23,423 | |||||||
Collateral on securities loaned, at value | 5,390,205 | 2,011,142 | |||||||
Deferred foreign capital gain tax | — | 2,494 | |||||||
Payables: | |||||||||
Investments purchased | 6,430,635 | 6,389,814 | |||||||
Variation margin on futures contracts | — | 855 | |||||||
Capital shares redeemed . | — | 606,356 | |||||||
Investment advisory fees | 17,565 | 34,135 | |||||||
Total liabilities | 11,838,405 | 9,068,219 | |||||||
NET ASSETS | $ | 129,031,172 | $ | 82,431,725 | |||||
NET ASSETS CONSIST OF: | |||||||||
Paid-in capital | $ | 137,017,899 | $ | 77,575,554 | |||||
Accumulated earnings (loss) | (7,986,727 | ) | 4,856,171 | ||||||
NET ASSETS | $ | 129,031,172 | $ | 82,431,725 | |||||
Shares outstanding | 5,050,000 | 1,300,000 | |||||||
Net asset value | $ | 25.55 | $ | 63.41 | |||||
Shares authorized | Unlimited | Unlimited | |||||||
Par value | None | None | |||||||
(a) | Securities loaned, at value | $ | 5,272,617 | $ | 1,909,876 | ||||
(b) | Investments, at cost — Unaffiliated | $ | 134,736,570 | $ | 78,306,736 | ||||
(c) | Investments, at cost — Affiliated | $ | 5,521,088 | $ | 2,011,860 | ||||
(d) | Foreign currency, at cost . | $ | — | $ | 425,878 |
See notes to financial statements.
F i n a n c i a l S t a t m e n t s | 49 |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares ESG MSCI EAFE ETF | iShares ESG MSCI EM Leaders ETF(a) | iShares ESG MSCI USA ETF | iShares ESG MSCI USA Leaders ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 12,592,675 | $ | 843,426 | $ | 18,459,116 | $ | 16,785,408 | ||||||||
Dividends — Affiliated | 6,170 | 118 | 86,844 | 125,644 | ||||||||||||
Interest — Unaffiliated . . | — | — | 559 | 1,418 | ||||||||||||
Securities lending income — Affiliated — net | 12,485 | — | 17,020 | 24,128 | ||||||||||||
Foreign taxes withheld | (906,874 | ) | (96,630 | ) | — | — | ||||||||||
Total investment income . . . | 11,704,456 | 746,914 | 18,563,539 | 16,936,598 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 1,337,508 | 50,136 | 1,313,020 | 862,848 | ||||||||||||
Interest expense . . | — | 367 | — | — | ||||||||||||
Total expenses | 1,337,508 | 50,503 | 1,313,020 | 862,848 | ||||||||||||
Net investment income | 10,366,948 | 696,411 | 17,250,519 | 16,073,750 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (20,796,458 | ) | (1,166,660 | ) | (30,303,034 | ) | (3,932,035 | ) | ||||||||
Investments — Affiliated . | 393 | — | (18,014 | ) | 2,356 | |||||||||||
In-kind redemptions — Unaffiliated | 7,220,301 | — | 19,858,446 | 17,620,422 | ||||||||||||
In-kind redemptions — Affiliated . . . | — | — | 45,837 | 64,483 | ||||||||||||
Futures contracts | 473,321 | 83,514 | 19,359 | 352,988 | ||||||||||||
Foreign currency transactions | 27,710 | (112,678 | ) | — | — | |||||||||||
Net realized gain (loss) | (13,074,733 | ) | (1,195,824 | ) | (10,397,406 | ) | 14,108,214 | |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (51,742,602 | ) | (49,727,680 | ) | (210,321,508 | ) | 5,592,528 | |||||||||
Investments — Affiliated . | 459 | — | (999,615 | ) | 414,866 | |||||||||||
Futures contracts | (608,009 | ) | (36,939 | ) | (1,154,206 | ) | (562,656 | ) | ||||||||
Foreign currency translations | (7,480 | ) | (27,685 | ) | — | — | ||||||||||
Net change in unrealized appreciation (depreciation) | (52,357,632 | ) | (49,792,304 | ) | (212,475,329 | ) | 5,444,738 | |||||||||
Net realized and unrealized gain (loss) | (65,432,365 | ) | (50,988,128 | ) | (222,872,735 | ) | 19,552,952 | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . | $ | (55,065,417 | ) | $ | (50,291,717 | ) | $ | (205,622,216 | ) | $ | 35,626,702 |
(a) | For the period from February 05, 2020 (commencement of operations) to February 29, 2020. |
See notes to financial statements.
50 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited) (continued)
Six Months Ended February 29, 2020
iShares ESG MSCI USA Small-Cap ETF | iShares MSCI Global Impact ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Unaffiliated | $ | 727,155 | $ | 418,173 | ||||
Dividends — Affiliated | 1,712 | 1,001 | ||||||
Securities lending income — Affiliated — net | 17,849 | 103,607 | ||||||
Foreign taxes withheld | (517 | ) | (10,631 | ) | ||||
Total investment income | 746,199 | 512,150 | ||||||
EXPENSES | ||||||||
Investment advisory fees | 78,468 | 171,812 | ||||||
Commitment fees | — | 5 | ||||||
Interest expense | — | 17 | ||||||
Total expenses | 78,468 | 171,834 | ||||||
Net investment income | 667,731 | 340,316 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated(a) | (1,417,633 | ) | (305,481 | ) | ||||
Investments — Affiliated. | (159 | ) | 897 | |||||
In-kind redemptions — Unaffiliated | 770,405 | 3,805,151 | ||||||
Futures contracts | — | 32,614 | ||||||
Foreign currency transactions | — | 180 | ||||||
Net realized gain (loss). | (647,387 | ) | 3,533,361 | |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated(b) | (7,143,299 | ) | 1,854,749 | |||||
Investments — Affiliated | 1,441 | 707 | ||||||
Futures contracts | — | (18,070 | ) | |||||
Foreign currency translations | — | 208 | ||||||
Net change in unrealized appreciation (depreciation) | (7,141,858 | ) | 1,837,594 | |||||
Net realized and unrealized gain (loss) | (7,789,245 | ) | 5,370,955 | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (7,121,514 | ) | $ | 5,711,271 | |||
(a) Net of foreign capital gain tax of | $ | — | $ | (162 | ) | |||
(b) Net of deferred foreign capital gain tax of | $ | — | $ | 978 |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 51 |
Statements of Changes in Net Assets
iShares ESG MSCI EAFE ETF | iShares ESG MSCI EM Leaders ETF | |||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Period From 02/05/20(a) to 02/29/20 (unaudited) | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 10,366,948 | $ | 21,367,923 | $ | 696,411 | ||||||
Net realized loss | (13,074,733 | ) | (19,356,007 | ) | (1,195,824 | ) | ||||||
Net change in unrealized appreciation (depreciation) | (52,357,632 | ) | (1,108 | ) | (49,792,304 | ) | ||||||
Net increase (decrease) in net assets resulting from operations | (55,065,417 | ) | 2,010,808 | (50,291,717 | ) | |||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||||||
Decrease in net assets resulting from distributions to shareholders | (12,497,803 | ) | (19,168,507 | ) | — | |||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||
Net increase in net assets derived from capital share transactions | 732,802,903 | 574,628,544 | 638,014,637 | |||||||||
NET ASSETS | ||||||||||||
Total increase in net assets | 665,239,683 | 557,470,845 | 587,722,920 | |||||||||
Beginning of period | 917,779,537 | 360,308,692 | — | |||||||||
End of period | $ | 1,583,019,220 | $ | 917,779,537 | $ | 587,722,920 |
(a) | Commencement of operations. |
(b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
52 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Statements of Changes in Net Assets (continued)
iShares ESG MSCI USA ETF | iShares ESG MSCI USA Leaders ETF | |||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Six Months Ended 02/29/20 (unaudited) | Period From 05/07/19(a) to 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income. | $ | 17,250,519 | $ | 3,269,574 | $ | 16,073,750 | $ | 7,848,123 | ||||||||
Net realized gain (loss) | (10,397,406 | ) | (1,392,058 | ) | 14,108,214 | (1,434,104 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (212,475,329 | ) | 10,563,135 | 5,444,738 | 43,993,349 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (205,622,216 | ) | 12,440,651 | 35,626,702 | 50,407,368 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (8,319,261 | ) | (2,815,030 | ) | (15,632,551 | ) | (2,800,982 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 3,293,604,003 | 187,304,865 | 200,749,637 | 1,531,458,714 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 3,079,662,526 | 196,930,486 | 220,743,788 | 1,579,065,100 | ||||||||||||
Beginning of period | 295,904,506 | 98,974,020 | 1,579,065,100 | — | ||||||||||||
End of period | $ | 3,375,567,032 | $ | 295,904,506 | $ | 1,799,808,888 | $ | 1,579,065,100 |
(a) | Commencement of operations. |
(b) | 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 | 53 |
Statements of Changes in Net Assets (continued)
iShares ESG MSCI USA Small-Cap ETF | iShares MSCI Global Impact ETF | |||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 667,731 | $ | 347,114 | $ | 340,316 | $ | 809,310 | ||||||||
Net realized gain (loss) | (647,387 | ) | (900,516 | ) | 3,533,361 | (1,049,458 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (7,141,858 | ) | 83,278 | 1,837,594 | 324,357 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (7,121,514 | ) | (470,124 | ) | 5,711,271 | 84,209 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (549,129 | ) | (262,083 | ) | (417,902 | ) | (871,734 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions. | 79,038,065 | 46,890,216 | 22,963,895 | 17,033,525 | ||||||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 71,367,422 | 46,158,009 | 28,257,264 | 16,246,000 | ||||||||||||
Beginning of period | 57,663,750 | 11,505,741 | 54,174,461 | 37,928,461 | ||||||||||||
End of period | $ | 129,031,172 | $ | 57,663,750 | $ | 82,431,725 | $ | 54,174,461 |
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
See notes to financial statements.
54 | 2 0 2 0 i S h a r e s S e m i - A n n u a 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 ESG MSCI EAFE ETF | ||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Period From 06/28/16(a) to 08/31/16 | ||||||||||||||||
Net asset value, beginning of period. | $ | 62.01 | $ | 65.51 | $ | 64.28 | $ | 55.84 | $ | 50.87 | ||||||||||
Net investment income(b) | 0.52 | 2.12 | 2.16 | 1.87 | 0.16 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | (0.57 | ) | (3.92 | ) | 0.83 | 7.68 | 4.81 | |||||||||||||
Net increase (decrease) from investment operations | (0.05 | ) | (1.80 | ) | 2.99 | 9.55 | 4.97 | |||||||||||||
Distributions(d) | ||||||||||||||||||||
From net investment income | (0.60 | ) | (1.70 | ) | (1.76 | ) | (1.11 | ) | — | |||||||||||
Total distributions | (0.60 | ) | (1.70 | ) | (1.76 | ) | (1.11 | ) | — | |||||||||||
Net asset value, end of period | $ | 61.36 | $ | 62.01 | $ | 65.51 | $ | 64.28 | $ | 55.84 | ||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | (0.19 | )%(e) | (2.68 | )% | 4.64 | % | 17.16 | % | 9.79 | %(e) | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.20 | %(f) | 0.20 | % | 0.20 | % | 0.38 | % | 0.40 | %(f) | ||||||||||
Net investment income | 1.55 | %(f) | 3.39 | % | 3.22 | % | 3.10 | % | 1.67 | %(f) | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 1,583,019 | $ | 917,780 | $ | 360,309 | $ | 122,123 | $ | 5,584 | ||||||||||
Portfolio turnover rate(g) | 12 | %(e) | 26 | % | 24 | % | 9 | % | 5 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 55 |
Financial Highlights (continued)
(For a share outstanding throughout the period)
iShares | ||||
ESG MSCI | ||||
EM | ||||
Leaders | ||||
ETF | ||||
Period | ||||
From | ||||
02/05/20(a) | ||||
to | ||||
02/29/20 | ||||
(unaudited) | ||||
Net asset value, beginning of period | $ | 51.43 | ||
Net investment income(b) | 0.07 | |||
Net realized and unrealized loss(c) | (4.29 | ) | ||
Net decrease from investment operations | (4.22 | ) | ||
Net asset value, end of period | $ | 47.21 | ||
Total Return | ||||
Based on net asset value | (8.21 | )%(d) | ||
Ratios to Average Net Assets | ||||
Total expenses | 0.16 | %(e) | ||
Net investment income | 2.22 | %(e) | ||
Supplemental Data | ||||
Net assets, end of period (000) | $ | 587,723 | ||
Portfolio turnover rate(f) | 8 | %(d) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
56 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG MSCI USA ETF | ||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Period From 12/01/16(a) to 08/31/17 | |||||||||||||
Net asset value, beginning of period. | $ | 64.33 | $ | 63.85 | $ | 54.15 | $ | 47.79 | ||||||||
Net investment income(b) | 0.69 | 1.17 | 1.09 | 0.71 | ||||||||||||
Net realized and unrealized gain(c) | 1.34 | 0.40 | 9.52 | 6.22 | ||||||||||||
Net increase from investment operations | 2.03 | 1.57 | 10.61 | 6.93 | ||||||||||||
Distributions(d) | ||||||||||||||||
From net investment income | (0.43 | ) | (1.09 | ) | (0.80 | ) | (0.57 | ) | ||||||||
From net realized gain | — | — | (0.11 | ) | — | |||||||||||
Total distributions | (0.43 | ) | (1.09 | ) | (0.91 | ) | (0.57 | ) | ||||||||
Net asset value, end of period | $ | 65.93 | $ | 64.33 | $ | 63.85 | $ | 54.15 | ||||||||
Total Return | ||||||||||||||||
Based on net asset value | 3.12 | %(e) | 2.59 | % | 19.79 | % | 14.55 | %(e) | ||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.15 | %(f) | 0.15 | % | 0.15 | % | 0.27 | %(f) | ||||||||
Net investment income | 1.97 | %(f) | 1.88 | % | 1.83 | % | 1.85 | %(f) | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 3,375,567 | $ | 295,905 | $ | 98,974 | $ | 10,830 | ||||||||
Portfolio turnover rate(g) | 13 | %(e) | 27 | % | 28 | % | 22 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 57 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG MSCI USA Leaders ETF | ||||||||
Six Months Ended 02/29/20 (unaudited) | Period From 05/07/19(a) to 08/31/19 | |||||||
Net asset value, beginning of period | $ | 50.77 | $ | 49.23 | ||||
Net investment income(b). | 0.50 | 0.32 | ||||||
Net realized and unrealized gain(c). | 1.02 | 1.34 | ||||||
Net increase from investment operations | 1.52 | 1.66 | ||||||
Distributions(d) | ||||||||
From net investment income | (0.50 | ) | (0.12 | ) | ||||
Total distributions | (0.50 | ) | (0.12 | ) | ||||
Net asset value, end of period. | $ | 51.79 | $ | 50.77 | ||||
Total Return | ||||||||
Based on net asset value | 2.97 | %(e) | 3.38 | %(e) | ||||
Ratios to Average Net Assets | ||||||||
Total expenses | 0.10 | %(f) | 0.11 | %(f) | ||||
Total expenses after fees waived. | 0.10 | %(f) | 0.10 | %(f) | ||||
Net investment income | 1.86 | %(f) | 2.00 | %(f) | ||||
Supplemental Data | ||||||||
Net assets, end of period (000) | $ | 1,799,809 | $ | 1,579,065 | ||||
Portfolio turnover rate(g) | 3 | %(e) | 4 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
58 | 2 0 2 0 i S h a r e s S e m i - A n n u a R e p o r t t o S h a r e h o l d e r s |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG MSCI USA Small-Cap ETF | ||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Period From 04/10/18 to 08/31/18 | (a)
| |||||||||
Net asset value, beginning of period | $ | 26.21 | $ | 28.76 | $ | 25.47 | ||||||
Net investment income(b) | 0.20 | 0.36 | 0.12 | |||||||||
Net realized and unrealized gain (loss)(c) | (0.69 | ) | (2.58 | ) | 3.23 | |||||||
Net increase (decrease) from investment operations | (0.49 | ) | (2.22 | ) | 3.35 | |||||||
Distributions(d) | ||||||||||||
From net investment income | (0.17 | ) | (0.33 | ) | (0.06 | ) | ||||||
Total distributions | (0.17 | ) | (0.33 | ) | (0.06 | ) | ||||||
Net asset value, end of period | $ | 25.55 | $ | 26.21 | $ | 28.76 | ||||||
Total Return | ||||||||||||
Based on net asset value | (1.91 | )%(e) | (7.69 | )% | 13.16 | %(e) | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.17 | %(f) | 0.17 | % | 0.17 | %(f) | ||||||
Net investment income | 1.45 | %(f) | 1.35 | % | 1.17 | %(f) | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 129,031 | $ | 57,664 | $ | 11,506 | ||||||
Portfolio turnover rate(g) | 18 | %(e) | 34 | % | 15 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F i n a n c i a l S t a t e m e n t s | 59 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Global Impact ETF | ||||||||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Year Ended 08/31/19 | Year Ended 08/31/18 | Year Ended 08/31/17 | Period From 04/20/16 to 08/31/16 | (a)
| |||||||||||||||
Net asset value, beginning of period. | $ | 57.03 | $ | 58.35 | $ | 55.92 | $ | 49.61 | $ | 48.70 | ||||||||||
Net investment income(b) | 0.31 | 1.02 | 1.32 | 1.05 | 0.49 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | 6.43 | (1.29 | ) | 2.65 | 6.44 | 0.65 | ||||||||||||||
Net increase (decrease) from investment operations | 6.74 | (0.27 | ) | 3.97 | 7.49 | 1.14 | ||||||||||||||
Distributions(d) | ||||||||||||||||||||
From net investment income | (0.36 | ) | (1.05 | ) | (1.54 | ) | (1.18 | ) | (0.23 | ) | ||||||||||
Total distributions | (0.36 | ) | (1.05 | ) | (1.54 | ) | (1.18 | ) | (0.23 | ) | ||||||||||
Net asset value, end of period | $ | 63.41 | $ | 57.03 | $ | 58.35 | $ | 55.92 | $ | 49.61 | ||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value. | 11.83 | %(e) | (0.40 | )% | 7.16 | % | 15.27 | % | 2.38 | %(e) | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.49 | %(f) | 0.49 | % | 0.49 | % | 0.49 | % | 0.49 | %(f) | ||||||||||
Net investment income | 0.97 | %(f) | 1.79 | % | 2.26 | % | 2.05 | % | 2.76 | %(f) | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 82,432 | $ | 54,174 | $ | 37,928 | $ | 25,164 | $ | 14,884 | ||||||||||
Portfolio turnover rate(g) | 20 | %(e) | 43 | % | 36 | % | 32 | % | 28 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
60 | 2 0 2 0 i S h a r e s S e m i - A n n u a 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”):
Diversification | ||||
iShares ETF | Classification | |||
ESG MSCI EAFE | Diversified | |||
ESG MSCI EM Leaders(a) | Non-diversified | |||
ESG MSCI USA(b) | Diversified | |||
ESG MSCI USA Leaders | Non-diversified | |||
ESG MSCI USA Small-Cap | Non-diversified | |||
MSCI Global Impact | Diversified |
(a) The Fund commenced operations on February 05, 2020.
(b) The Fund’s classification changed from non-diversified to diversified during the reporting period.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign Currency Translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 61 |
Notes to Financial Statements (unaudited) (continued)
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
● | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
● | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
● | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 for identical assets or liabilities; |
● | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
● | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral
62 | 2 0 2 0 i S h a r e s S e m i - A n n u a 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)
received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received | (a) | Non-Cash Collateral Received | Net Amount | |||||||||||
ESG MSCI EAFE BNP Paribas Prime Brokerage International Ltd. | $ | 1,056,517 | $ | 1,056,517 | $ | — | $ | — | ||||||||
Credit Suisse AG Dublin Branch | 549,981 | 549,981 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 1,347,296 | 1,347,296 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 268,060 | 268,060 | — | — | ||||||||||||
$ | 3,221,854 | $ | 3,221,854 | $ | — | $ | — | |||||||||
ESG MSCI USA | ||||||||||||||||
Credit Suisse AG Dublin Branch | $ | 2,731,987 | $ | 2,676,558 | $ | — | $ | (55,429) | (b) | |||||||
Credit Suisse Securities (USA) LLC | 309,736 | 309,736 | — | — | ||||||||||||
JPMorgan Securities LLC | 1,694 | 11,606 | — | (88) | (b) | |||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 3,743,855 | 3,743,855 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 555,962 | 555,962 | — | — | ||||||||||||
$ | 7,353,234 | $ | 7,297,717 | $ | — | $ | (55,517) | |||||||||
ESG MSCI USA Leaders Barclays Capital Inc. | $ | 317,871 | $ | 316,056 | $ | — | $ | (1,815) | (b) | |||||||
Credit Suisse AG Dublin Branch | 7,453 | 7,305 | — | (148) | (b) | |||||||||||
Credit Suisse Securities (USA) LLC | 67,565 | 67,565 | — | — | ||||||||||||
Goldman Sachs & Co. | 700,875 | 700,875 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 415,815 | 415,815 | — | — | ||||||||||||
UBS Securities LLC | 1,472,895 | 1,472,895 | — | — | ||||||||||||
Wells Fargo Securities LLC | 886,623 | 886,623 | — | — | ||||||||||||
$ | 3,869,097 | $ | 3,867,134 | $ | — | $ | (1,963) | |||||||||
ESG MSCI USA Small-Cap Barclays Capital Inc. | $ | 160,456 | $ | 160,456 | $ | — | $ | — | ||||||||
BofA Securities, Inc. | 922,862 | 922,862 | — | — | ||||||||||||
Citadel Clearing LLC | 181,525 | 181,525 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 1,530,507 | 1,530,507 | — | — | ||||||||||||
Credit Suisse AG Dublin Branch | 852,575 | 852,575 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 51,921 | 51,921 | — | — | ||||||||||||
HSBC Bank PLC | 85,376 | 82,661 | — | (2,715) | (b) | |||||||||||
Jefferies LLC | 53,877 | 53,877 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 1,314,103 | 1,314,103 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 21,767 | 21,767 | — | — | ||||||||||||
UBS AG | 97,648 | 97,648 | — | — | ||||||||||||
$ | 5,272,617 | $ | 5,269,902 | $ | — | $ | (2,715) | |||||||||
MSCI Global Impact | ||||||||||||||||
Credit Suisse Securities (USA) LLC | $ | 1,058,737 | $ | 1,058,737 | $ | — | $ | — | ||||||||
JPMorgan Securities LLC | 680,996 | 680,996 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 59,743 | 59,743 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 10,400 | 110,400 | — | — | ||||||||||||
$ | 1,909,876 | $ | 1,909,876 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
N o t e s t o F i n a n c i a l S t a t e m e n t s | 63 |
Notes to Financial Statements (unaudited) (continued)
(b) | Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
ESG MSCI EAFE | 0 20 | % | ||
ESG MSCI EM Leaders | 0.16 | |||
ESG MSCI USA | 0.15 | |||
ESG MSCI USA Leaders | 0.10 | |||
ESG MSCI USA Small-Cap | 0.17 | |||
MSCI Global Impact | 0.49 |
Distributor BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company,
N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each of the iShares ESG MSCI USA ETF, iShares ESG MSCI USA Leaders ETF and iShares ESG MSCI USA Small-Cap ETF (the “Group 1 Fund”), retains 75% 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.
64 | 2 0 2 0 i S h a r e s S e m i - A n n u a 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)
Pursuant to the current securities lending agreement, each of the iShares ESG MSCI EAFE ETF, iShares ESG MSCI EM Leaders ETF and iShares MSCI Global Impact ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 80% 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, and (2) Each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2020, each Group 1 Fund retained 73.5% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund retained 82% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 80% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) Each Group 2 Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could 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 statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
ESG MSCI EAFE | $ | 3,340 | ||
ESG MSCI USA | 7,226 | |||
ESG MSCI USA Leaders | 10,316 | |||
ESG MSCI USA Small-Cap | 7,222 | |||
MSCI Global Impact | 23,439 |
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 February 29, 2020, 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 MSCI USA Leaders | $ | 13,045,099 | $ | 5,124,327 | $ | (797,742 | ) | |||||
ESG MSCI USA Small-Cap | 2,159,250 | 3,176,875 | (178,530 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. PURCHASES AND SALES
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
ESG MSCI EAFE | $ | 230,561,638 | $ | 152,717,409 | ||||
ESG MSCI EM Leaders | 463,643,746 | 23,563,190 | ||||||
ESG MSCI USA | 246,530,868 | 223,073,823 | ||||||
ESG MSCI USA Leaders | 48,146,599 | 49,202,794 | ||||||
ESG MSCI USA Small-Cap | 18,614,431 | 17,114,764 | ||||||
MSCI Global Impact | 25,522,241 | 13,936,798 |
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 | 65 |
Notes to Financial Statements (unaudited) (continued)
For the six months ended February 29, 2020, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
ESG MSCI EAFE | $ | 691,469,669 | $ | 37,622,067 | ||||
ESG MSCI EM Leaders | 196,071,816 | — | ||||||
ESG MSCI USA | 3,453,389,482 | 187,759,602 | ||||||
ESG MSCI USA Leaders | 325,217,766 | 122,120,285 | ||||||
ESG MSCI USA Small-Cap | 80,086,259 | 2,784,994 | ||||||
MSCI Global Impact | 20,677,897 | 8,906,221 |
8. INCOME TAX INFORMATION
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
ESG MSCI EAFE | $ | 9,800,454 | ||
ESG MSCI USA | ,474,894 | |||
ESG MSCI USA Leaders | 1,532,638 | |||
ESG MSCI USA Small-Cap | 722,702 | |||
MSCI Global Impact | 1,595,674 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 29, 2020, 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 | Gross Unrealized | Net Unrealized Appreciation (Depreciation) | ||||||||||||
ESG MSCI EAFE | $ | 1,635,853,903 | $ | 65,064,279 | $ | (119,917,800 | ) | $ | (54,853,521 | ) | ||||||
ESG MSCI EM Leaders | 634,985,633 | 755,640 | (50,520,259 | ) | (49,764,619 | ) | ||||||||||
ESG MSCI USA | 3,574,969,789 | 37,577,296 | (235,591,716 | ) | (198,014,420 | ) | ||||||||||
ESG MSCI USA Leaders | 1,753,251,978 | 121,228,120 | (72,109,119 | ) | 49,119,001 | |||||||||||
ESG MSCI USA Small-Cap | 140,923,313 | 5,241,504 | (12,088,963 | ) | (6,847,459 | ) | ||||||||||
MSCI Global Impact | 81,819,076 | 7,778,021 | (4,956,422 | ) | 2,821,599 |
9. LINE OF CREDIT
The iShares ESG MSCI EM Leaders ETF, effective February 5, 2020, and iShares MSCI Global Impact ETF, along with certain other iShares funds, are parties to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 21, 2020. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.
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Notes to Financial Statements (unaudited) (continued)
For the six months ended February 29, 2020, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:
iShares ETF | Maximum Amount Borrowed | Average Borrowing | Weighted Average Interest Rates | |||||||||
ESG MSCI EM Leaders | $ | 2,627,781 | $ | 28,877 | 2.58 | % | ||||||
MSCI Global Impact | 101,000 | 1,110 | 3.13 |
10. PRINCIPAL RISKS
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 67 |
Notes to Financial Statements (unaudited) (continued)
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
11. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
ESG MSCI EAFE | ||||||||||||||||
Shares sold | 11,600,000 | $ | 771,398,233 | 9,300,000 | $ | 574,628,544 | ||||||||||
Shares redeemed | (600,000 | ) | (38,595,330 | ) | — | — | ||||||||||
Net increase | 11,000,000 | $ | 732,802,903 | 9,300,000 | $ | 574,628,544 |
Period Ended 02/29/20 | ||||||||
iShares ETF | Shares | Amount | ||||||
ESG MSCI EM Leaders | ||||||||
Shares sold | 12,450,000 | $ | 638,014,637 |
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
ESG MSCI USA | ||||||||||||||||
Shares sold | 49,500,000 | $ | 3,486,855,857 | 3,250,000 | $ | 199,570,624 | ||||||||||
Shares redeemed | (2,900,000 | ) | (193,251,854 | ) | (200,000 | ) | (12,265,759 | ) | ||||||||
Net increase | 46,600,000 | $ | 3,293,604,003 | 3,050,000 | $ | 187,304,865 |
Six Months Ended 02/29/20 | Period Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
ESG MSCI USA Leaders | ||||||||||||||||
Shares sold | 5,950,000 | $ | 326,261,488 | 31,950,000 | $ | 1,572,706,856 | ||||||||||
Shares redeemed | (2,300,000 | ) | (125,511,851 | ) | (850,000 | ) | (41,248,142 | ) | ||||||||
Net increase | 3,650,000 | $ | 200,749,637 | 31,100,000 | $ | 1,531,458,714 |
Six Months Ended 02/29/20 | Year Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
ESG MSCI USA Small-Cap | ||||||||||||||||
Shares sold | 2,950,000 | $ | 81,854,272 | 1,900,000 | $ | 49,470,939 | ||||||||||
Shares redeemed | (100,000 | ) | (2,816,207 | ) | (100,000 | ) | (2,580,723 | ) | ||||||||
Net increase | 2,850,000 | $ | 79,038,065 | 1,800,000 | $ | 46,890,216 | ||||||||||
MSCI Global Impact | ||||||||||||||||
Shares sold | 500,000 | $ | 32,476,471 | 350,000 | $ | 19,922,627 | ||||||||||
Shares redeemed | (150,000 | ) | (9,512,576 | ) | (50,000 | ) | (2,889,102 | ) | ||||||||
Net increase | 350,000 | $ | 22,963,895 | 300,000 | $ | 17,033,525 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also
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Notes to Financial Statements (unaudited) (continued)
pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
12. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
13. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 69 |
Board Review and Approval of Investment Advisory Contract
For iShares ESG MSCI EM Leaders 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 Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required to consider and approve the proposed Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract. At a meeting held on December 1-3, 2019, the Board, including the Independent Trustees, approved the selection of BFAas investment adviser and approved the proposed Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses of the Fund; (ii) the nature, extent and quality of the services to be provided by BFA; (iii) the costs of services to be provided to the Fund and the availability of information related to profits to be realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses 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 of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further 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.
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 of the Fund supported the Board’s approval of the Advisory Contract.
Nature, Extent and Quality of Services to be Provided by BFA: The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. 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 and have made significant investments into the iShares business, including during the past year, to support the iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that BFAreports 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 relevant, and has provided information and made appropriate 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 who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. The Board also considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided throughout the year with respect to other iShares funds.
Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.
Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates: The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.
Economies of Scale: The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets. The Board considered information that it had previously received regarding economies of scale, efficiencies and scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for any 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.
This consideration 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 Advisory Contract.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates
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Board Review and Approval of Investment Advisory Contract (continued)
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 further noted that BFA previously provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different and generally more extensive services provided to the iShares funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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. The Board noted that the investment advisory fee rate under the Advisory Contract 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: Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, 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 considered the potential payment of advisory fees and/or administration 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 and/or administration services. The Board also noted the potential revenue to be received by BFA and/or its affiliates pursuant to an agreement that would permit 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 also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions), will be reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. 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 Advisory Contract.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the Fund investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the Advisory Contract.
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 | 71 |
Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares ESG MSCI EAFE ETF, iShares ESG MSCI USA ETF, iShares ESG MSCI USA Leaders ETF, iShares ESG MSCI USA Small-Cap ETF and iShares MSCI Global Impact ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classification. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
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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.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net | Net Realized | Return of | Total Per | Net Income | Net | Return of | Total Per | ||||||||||||||||||||||||
ESG MSCI EAFE(a) | $ | 0.531567 | $ | — | $ | 0.066414 | $ | 0.597981 | 89 | % | —% | 11 | % | 100 | % | |||||||||||||||||
ESG MSCI USA(a) | 0.376077 | — | 0.050543 | 0.426620 | 88 | — | 12 | 100 | ||||||||||||||||||||||||
ESG MSCI USA Leaders(a) | 0.448043 | — | 0.051598 | 0.499641 | 90 | — | 10 | 100 | ||||||||||||||||||||||||
ESG MSCI USA Small-Cap(a) | 0.139085 | — | 0.034282 | 0.173367 | 80 | — | 20 | 100 | ||||||||||||||||||||||||
MSCI Global Impact(a) | 0.345085 | — | 0.018308 | 0.363393 | 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. Areturn of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
S u p p l e m e n t a l I n f o r m at i o n | 73 |
Electronic Delivery
Shareholders can sign up for email 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
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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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-817-0220
FEBRUARY 29, 2020 |
2020 Semi-Annual Report |
(Unaudited) |
iShares Trust
● | iShares MSCI Japan Equal Weighted ETF | EWJE | NASDAQ |
● | iShares MSCI Japan Value ETF | EWJV | NASDAQ |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service. |
Table of Contents
Fund Summary as of February 29, 2020 | iShares® MSCI Japan Equal Weighted ETF |
Investment Objective
The iShares MSCI Japan Equal Weighted ETF (the “Fund”) seeks to track the investment results of an index composed of equal weighted Japanese equities, as represented by the MSCI Japan Equal Weighted Index (USD) (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
Cumulative Total Returns | |||||||
Since | |||||||
6 Months | Inception | ||||||
Fund NAV | (1.13 | )% | (2.26 | )% | |||
Fund Market | (2.69 | ) | (3.92 | ) | |||
Index | (1.14 | ) | (2.40 | ) |
The inception date of the Fund was 3/5/19. The first day of secondary market trading was 3/7/19.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||||
(09 /01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 988.70 | $ | 0.74 | $ | 1,000.00 | $ | 1,024.10 | $ | 0.75 | 0.15 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Industrials | 22.1 | % | ||
Consumer Discretionary | 15.8 | |||
Information Technology | 11.5 | |||
Financials | 10.2 | |||
Materials | 9.1 | |||
Consumer Staples | 8.7 | |||
Health Care | 8.2 | |||
Real Estate | 5.8 | |||
Communication Services | 4.9 | |||
Utilities | 2.9 | |||
Energy | 0.8 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
Tokyo Electron Ltd. | 0.7 | % | ||
Disco Corp. | 0.6 | |||
Hoya Corp. | 0.6 | |||
FANUC Corp. | 0.5 | |||
Nippon Building Fund Inc. | 0.5 | |||
Eisai Co. Ltd. | 0.5 | |||
Hitachi High-Technologies Corp. | 0.5 | |||
LINE Corp. | 0.5 | |||
Olympus Corp. | 0.5 | |||
Hitachi Metals Ltd. | 0.5 |
(a) | Excludes money market funds. |
F u n d S u m m a r y | 3 |
Fund Summary as of February 29, 2020 | iShares® MSCI Japan Value ETF |
Investment Objective
The iShares MSCI Japan Value ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Japanese equities with value characteristics and relatively lower valuations, as represented by the MSCI Japan Value Index (USD) (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
Cumulative Total Returns | |||||||
Since | |||||||
6 Months | Inception | ||||||
Fund NAV | 0.95 | % | (1.17 | )% | |||
Fund Market | (0.50 | ) | (2.72 | ) | |||
Index. | 0.92 | (1.40 | ) |
The inception date of the Fund was 3/5/19. The first day of secondary market trading was 3/7/19.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 5 for more information.
Expense Example
Actual | Hypothetical 5% Return | ||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | |||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | |||||||||||||||||||||
(09/01/19) | (02/29/20) | the Period | (a) | (09/01/19) | (02/29/20) | the Period | (a) | Ratio | |||||||||||||||||||
$ | 1,000.00 | $ | 1,009.50 | $ | 0.75 | $ | 1,000.00 | $ | 1,024.10 | $ | 0.75 | 0.15 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (182 days) and divided by the number of days in the year (366 days). See “Shareholder Expenses” on page 5 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Percent of | ||||
Sector | Total Investments | (a) | ||
Consumer Discretionary | 23.2 | % | ||
Industrials | 19.5 | |||
Financials | 18.5 | |||
Communication Services | 12.5 | |||
Materials | 6.2 | |||
Information Technology | 5.5 | |||
Health Care | 4.1 | |||
Real Estate | 3.9 | |||
Utilities | 3.1 | |||
Consumer Staples | 1.9 | |||
Energy | 1.6 |
TEN LARGEST HOLDINGS | ||||
Percent of | ||||
Security | Total Investments | (a) | ||
Toyota Motor Corp. | 9.1 | % | ||
SoftBank Group Corp. | 4.4 | |||
Mitsubishi UFJ Financial Group Inc. | 3.7 | |||
Takeda Pharmaceutical Co. Ltd. | 3.2 | |||
KDDI Corp. | 3.1 | |||
Sumitomo Mitsui Financial Group Inc. | 2.7 | |||
Honda Motor Co. Ltd. | 2.6 | |||
NTT DOCOMO Inc. | 2.2 | |||
Mizuho Financial Group Inc. | 2.0 | |||
Nippon Telegraph & Telephone Corp. | 1.9 |
(a) | Excludes money market funds. |
4 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Past performance is no guarantee of future results. 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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
A b o u t F u n d P e r f o r m a n c e / S h a r e h o l d e r E x p e n s e s | 5 |
Schedule of Investments (unaudited) | iShares® MSCI Japan Equal Weighted ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Air Freight & Logistics — 0.6% | ||||||||
SG Holdings Co. Ltd. | 1,000 | $ | 19,728 | |||||
Yamato Holdings Co. Ltd. | 1,200 | 18,935 | ||||||
38,663 | ||||||||
Airlines — 0.6% | ||||||||
ANA Holdings Inc. | 600 | 16,173 | ||||||
Japan Airlines Co. Ltd. | 800 | 19,862 | ||||||
36,035 | ||||||||
Auto Components — 3.1% | ||||||||
Aisin Seiki Co. Ltd. | 600 | 19,469 | ||||||
Bridgestone Corp. | 600 | 20,058 | ||||||
Denso Corp. | 400 | 15,649 | ||||||
Koito Manufacturing Co. Ltd. | 400 | 15,797 | ||||||
NGK Spark Plug Co. Ltd. | 1,000 | 16,456 | ||||||
Stanley Electric Co. Ltd. | 800 | 19,550 | ||||||
Sumitomo Electric Industries Ltd. | 1,400 | 16,750 | ||||||
Sumitomo Rubber Industries Ltd. | 1,600 | 16,658 | ||||||
Toyoda Gosei Co. Ltd. | 1,000 | 21,379 | ||||||
Toyota Industries Corp. | 400 | 21,175 | ||||||
Yokohama Rubber Co. Ltd. (The) | 1,000 | 16,289 | ||||||
199,230 | ||||||||
Automobiles — 2.7% | ||||||||
Honda Motor Co. Ltd. | 800 | 20,763 | ||||||
Isuzu Motors Ltd. | 1,800 | 16,955 | ||||||
Mazda Motor Corp | 2,300 | 15,992 | ||||||
Mitsubishi Motors Corp. | 5,600 | 18,638 | ||||||
Nissan Motor Co. Ltd. | 4,500 | 19,341 | ||||||
Subaru Corp. | 800 | 19,428 | ||||||
Suzuki Motor Corp. | 400 | 16,083 | ||||||
Toyota Motor Corp. | 400 | 26,429 | ||||||
Yamaha Motor Co. Ltd. | 1,000 | 16,020 | ||||||
169,649 | ||||||||
Banks — 4.3% | ||||||||
Aozora Bank Ltd. | 600 | 15,030 | ||||||
Bank of Kyoto Ltd. (The) | 600 | 20,442 | ||||||
Chiba Bank Ltd. (The) | 4,000 | 19,765 | ||||||
Concordia Financial Group Ltd. | 5,000 | 17,244 | ||||||
Fukuoka Financial Group Inc. | 1,000 | 15,241 | ||||||
Japan Post Bank Co. Ltd. | 1,600 | 14,299 | ||||||
Mebuki Financial Group Inc. | 10,200 | 19,953 | ||||||
Mitsubishi UFJ Financial Group Inc. | 4,000 | 19,725 | ||||||
Mizuho Financial Group Inc. | 13,000 | 17,789 | ||||||
Resona Holdings Inc. | 4,400 | 16,692 | ||||||
Seven Bank Ltd. | 6,800 | 17,904 | ||||||
Shinsei Bank Ltd. | 1,600 | 21,316 | ||||||
Shizuoka Bank Ltd. (The) | 2,600 | 16,439 | ||||||
Sumitomo Mitsui Financial Group Inc. | 600 | 19,380 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 600 | 20,581 | ||||||
271,800 | ||||||||
Beverages — 1.1% | ||||||||
Asahi Group Holdings Ltd. | 400 | 15,390 | ||||||
Coca-Cola Bottlers Japan Holdings Inc. | 800 | 18,430 | ||||||
Kirin Holdings Co. Ltd. | 1,000 | 19,237 | ||||||
Suntory Beverage & Food Ltd. | 400 | 15,241 | ||||||
68,298 | ||||||||
Biotechnology — 0.3% | ||||||||
PeptiDream Inc.(a) | 400 | 15,946 |
Security | Shares | Value | ||||||
Building Products — 1.4% | ||||||||
AGC Inc. | 600 | $ | 17,244 | |||||
Daikin Industries Ltd. | 200 | 27,303 | ||||||
LIXIL Group Corp. | 1,400 | 21,026 | ||||||
TOTO Ltd. | 600 | 22,778 | ||||||
88,351 | ||||||||
Capital Markets — 1.2% | ||||||||
Daiwa Securities Group Inc. | 4,000 | 17,029 | ||||||
Japan Exchange Group Inc. | 1,200 | 20,192 | ||||||
Nomura Holdings Inc. | 5,200 | 23,116 | ||||||
SBI Holdings Inc. | 800 | 16,131 | ||||||
76,468 | ||||||||
Chemicals — 6.2% | ||||||||
Air Water Inc. | 1,000 | 13,248 | ||||||
Asahi Kasei Corp. | 1,800 | 15,030 | ||||||
Daicel Corp. | 2,200 | 18,989 | ||||||
Hitachi Chemical Co. Ltd. | 600 | 25,337 | ||||||
JSR Corp. | 1,200 | 21,138 | ||||||
Kansai Paint Co. Ltd. | 1,200 | 26,222 | ||||||
Kuraray Co. Ltd. | 1,400 | 14,589 | ||||||
Mitsubishi Chemical Holdings Corp. | 2,800 | 18,854 | ||||||
Mitsubishi Gas Chemical Co. Inc. | 1,600 | 24,267 | ||||||
Mitsui Chemicals Inc. | 800 | 17,348 | ||||||
Nippon Paint Holdings Co. Ltd. | 600 | 27,395 | ||||||
Nissan Chemical Corp. | 400 | 16,929 | ||||||
Nitto Denko Corp. | 400 | 20,099 | ||||||
Shin-Etsu Chemical Co. Ltd. | 200 | 22,519 | ||||||
Showa Denko KK | 800 | 17,296 | ||||||
Sumitomo Chemical Co. Ltd. | 4,200 | 15,302 | ||||||
Taiyo Nippon Sanso Corp. | 1,200 | 21,482 | ||||||
Teijin Ltd. | 1,200 | 19,747 | ||||||
Toray Industries Inc. | 2,800 | 16,216 | ||||||
Tosoh Corp. | 1,400 | 19,222 | ||||||
391,229 | ||||||||
Commercial Services & Supplies — 1.5% | ||||||||
Dai Nippon Printing Co. Ltd. | 1,000 | 24,058 | ||||||
Park24 Co. Ltd. | 800 | 15,597 | ||||||
Secom Co. Ltd. | 200 | 15,900 | ||||||
Sohgo Security Services Co. Ltd. | 400 | 18,727 | ||||||
Toppan Printing Co. Ltd. | 1,200 | 20,926 | ||||||
95,208 | ||||||||
Construction & Engineering — 1.6% | ||||||||
JGC Holdings Corp. | 1,400 | 17,197 | ||||||
Kajima Corp. | 1,600 | 17,251 | ||||||
Obayashi Corp. | 2,200 | 22,211 | ||||||
Shimizu Corp. | 2,400 | 21,850 | ||||||
Taisei Corp. | 600 | 20,554 | ||||||
99,063 | ||||||||
Construction Materials — 0.3% | ||||||||
Taiheiyo Cement Corp. | 800 | 19,751 | ||||||
Consumer Finance — 1.1% | ||||||||
Acom Co. Ltd. | 6,000 | 24,698 | ||||||
AEON Financial Service Co. Ltd. | 1,200 | 17,444 | ||||||
Credit Saison Co. Ltd. | 1,800 | 26,166 | ||||||
68,308 | ||||||||
Containers & Packaging — 0.3% | ||||||||
Toyo Seikan Group Holdings Ltd. | 1,200 | 19,246 |
6 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Equal Weighted ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Consumer Services — 0.3% | ||||||||
Benesse Holdings Inc. | 800 | $ | 20,633 | |||||
Diversified Financial Services — 1.0% | ||||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 4,000 | 22,880 | ||||||
ORIX Corp. | 1,400 | 22,610 | ||||||
Tokyo Century Corp. | 500 | 20,767 | ||||||
66,257 | ||||||||
Diversified Telecommunication Services — 0.3% | ||||||||
Nippon Telegraph & Telephone Corp. | 800 | 18,760 | ||||||
Electric Utilities — 1.8% | ||||||||
Chubu Electric Power Co. Inc. | 1,200 | 15,659 | ||||||
Chugoku Electric Power Co. Inc. (The) | 1,800 | 23,963 | ||||||
Kansai Electric Power Co. Inc. (The) | 1,600 | 17,274 | ||||||
Kyushu Electric Power Co. Inc. | 3,200 | 23,199 | ||||||
Tohoku Electric Power Co. Inc. | 2,200 | 19,335 | ||||||
Tokyo Electric Power Co. Holdings Inc.(a) | 3,200 | 12,163 | ||||||
111,593 | ||||||||
Electrical Equipment — 1.0% | ||||||||
Fuji Electric Co. Ltd. | 600 | 16,482 | ||||||
Mitsubishi Electric Corp. | 1,600 | 20,337 | ||||||
Nidec Corp. | 200 | 23,696 | ||||||
60,515 | ||||||||
Electronic Equipment, Instruments & Components — 3.6% | ||||||||
Alps Alpine Co. Ltd. | 1,000 | 15,380 | ||||||
Hamamatsu Photonics KK | 600 | 23,279 | ||||||
Hirose Electric Co. Ltd. | 200 | 21,249 | ||||||
Hitachi High-Technologies Corp. | 400 | 29,555 | ||||||
Hitachi Ltd. | 600 | 20,231 | ||||||
Kyocera Corp. | 400 | 25,202 | ||||||
Murata Manufacturing Co. Ltd. | 400 | 21,215 | ||||||
Omron Corp. | 400 | 21,657 | ||||||
Shimadzu Corp. | 800 | 19,491 | ||||||
TDK Corp. | 200 | 19,376 | ||||||
Yokogawa Electric Corp. | 800 | 12,883 | ||||||
229,518 | ||||||||
Entertainment — 1.2% | ||||||||
Konami Holdings Corp. | 600 | 21,666 | ||||||
Nexon Co. Ltd. | 1,200 | 19,102 | ||||||
Square Enix Holdings Co. Ltd. | 400 | 16,131 | ||||||
Toho Co. Ltd. | 600 | 18,495 | ||||||
75,394 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 3.1% | ||||||||
Daiwa House REIT Investment Corp. | 8 | 19,966 | ||||||
Japan Prime Realty Investment Corp. | 6 | 26,422 | ||||||
Japan Real Estate Investment Corp. | 4 | 27,293 | ||||||
Japan Retail Fund Investment Corp. | 6 | 11,409 | ||||||
Nippon Building Fund Inc. | 4 | 30,001 | ||||||
Nippon Prologis REIT Inc. | 10 | 27,136 | ||||||
Nomura Real Estate Master Fund Inc. | 14 | 22,233 | ||||||
Orix JREIT Inc. | 10 | 19,005 | ||||||
United Urban Investment Corp. | 8 | 12,801 | ||||||
196,266 | ||||||||
Food & Staples Retailing — 2.1% | ||||||||
Aeon Co. Ltd. | 1,000 | 18,676 | ||||||
FamilyMart Co. Ltd. | 600 | 13,272 | ||||||
Lawson Inc. | 400 | 21,249 | ||||||
Seven & i Holdings Co. Ltd. | 400 | 13,706 | ||||||
Sundrug Co. Ltd. | 600 | 18,773 |
Security | Shares | Value | ||||||
Food & Staples Retailing (continued) | ||||||||
Tsuruha Holdings Inc. | 200 | $ | 23,233 | |||||
Welcia Holdings Co. Ltd. | 400 | 24,104 | ||||||
133,013 | ||||||||
Food Products — 3.0% | ||||||||
Ajinomoto Co. Inc. | 1,400 | 23,518 | ||||||
Calbee Inc. | 800 | 20,492 | ||||||
Kikkoman Corp. | 400 | 18,579 | ||||||
MEIJI Holdings Co. Ltd. | 200 | 11,941 | ||||||
NH Foods Ltd. | 600 | 22,639 | ||||||
Nisshin Seifun Group Inc. | 1,000 | 16,929 | ||||||
Nissin Foods Holdings Co. Ltd. | 200 | 15,760 | ||||||
Toyo Suisan Kaisha Ltd. | 600 | 23,780 | ||||||
Yakult Honsha Co. Ltd. | 400 | 18,301 | ||||||
Yamazaki Baking Co. Ltd. | 1,200 | 20,414 | ||||||
192,353 | ||||||||
Gas Utilities — 0.8% | ||||||||
Osaka Gas Co. Ltd. | 1,400 | 22,649 | ||||||
Toho Gas Co. Ltd. | 400 | 13,665 | ||||||
Tokyo Gas Co. Ltd. | 800 | 16,191 | ||||||
52,505 | ||||||||
Health Care Equipment & Supplies — 2.0% | ||||||||
Asahi Intecc Co. Ltd. | 800 | 19,180 | ||||||
Hoya Corp. | 400 | 35,633 | ||||||
Olympus Corp. | 1,600 | 29,103 | ||||||
Sysmex Corp. | 400 | 25,658 | ||||||
Terumo Corp. | 600 | 19,346 | ||||||
128,920 | ||||||||
Health Care Providers & Services — 0.8% | ||||||||
Alfresa Holdings Corp. | 1,000 | 17,577 | ||||||
Medipal Holdings Corp. | 800 | 14,626 | ||||||
Suzuken Co. Ltd. | 600 | 19,886 | ||||||
52,089 | ||||||||
Health Care Technology — 0.4% | ||||||||
M3 Inc. | 1,000 | 25,829 | ||||||
Hotels, Restaurants & Leisure — 0.6% | ||||||||
McDonald's Holdings Co. Japan Ltd. | 400 | 16,799 | ||||||
Oriental Land Co. Ltd. | 200 | 22,741 | ||||||
39,540 | ||||||||
Household Durables — 3.0% | ||||||||
Casio Computer Co. Ltd. | 1,400 | 24,102 | ||||||
Iida Group Holdings Co. Ltd. | 1,200 | 16,231 | ||||||
Nikon Corp. | 1,400 | 14,394 | ||||||
Panasonic Corp. | 2,200 | 21,018 | ||||||
Rinnai Corp. | 400 | 27,330 | ||||||
Sekisui Chemical Co. Ltd. | 1,400 | 20,884 | ||||||
Sekisui House Ltd. | 1,200 | 23,552 | ||||||
Sharp Corp. | 1,800 | 21,026 | ||||||
Sony Corp. | 400 | 24,516 | ||||||
193,053 | ||||||||
Household Products — 0.8% | ||||||||
Lion Corp. | 1,000 | 16,558 | ||||||
Pigeon Corp. | 400 | 13,572 | ||||||
Unicharm Corp. | 600 | 19,458 | ||||||
49,588 | ||||||||
Independent Power and Renewable Electricity Producers — 0.3% | ||||||||
Electric Power Development Co. Ltd. | 800 | 17,177 |
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) | iShares® MSCI Japan Equal Weighted ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Industrial Conglomerates — 0.5% | ||||||||
Keihan Holdings Co. Ltd. | 400 | $ | 16,243 | |||||
Toshiba Corp. | 600 | 16,270 | ||||||
32,513 | ||||||||
Insurance — 2.6% | ||||||||
Dai-ichi Life Holdings Inc. | 1,400 | 19,190 | ||||||
Japan Post Holdings Co. Ltd. | 1,900 | 16,570 | ||||||
Japan Post Insurance Co. Ltd. | 1,200 | 18,434 | ||||||
MS&AD Insurance Group Holdings Inc. | 600 | 19,374 | ||||||
Sompo Holdings Inc. | 600 | 22,339 | ||||||
Sony Financial Holdings Inc. | 1,200 | 24,008 | ||||||
T&D Holdings Inc. | 2,100 | 20,734 | ||||||
Tokio Marine Holdings Inc. | 400 | 21,512 | ||||||
162,161 | ||||||||
Interactive Media & Services — 1.2% | ||||||||
Kakaku.com Inc. | 1,000 | 21,416 | ||||||
LINE Corp.(a) | 600 | 29,537 | ||||||
Z Holdings Corp. | 7,000 | 25,504 | ||||||
76,457 | ||||||||
Internet & Direct Marketing Retail — 0.9% | ||||||||
Mercari Inc.(a) | 1,000 | 22,649 | ||||||
Rakuten Inc. | 2,800 | 23,440 | ||||||
ZOZO Inc. | 800 | 11,229 | ||||||
57,318 | ||||||||
IT Services — 3.0% | ||||||||
Fujitsu Ltd. | 200 | 20,785 | ||||||
GMO Payment Gateway Inc. | 400 | 24,549 | ||||||
Itochu Techno-Solutions Corp. | 800 | 22,205 | ||||||
NEC Corp. | 600 | 22,473 | ||||||
Nomura Research Institute Ltd. | 1,200 | 26,199 | ||||||
NTT Data Corp. | 1,800 | 21,544 | ||||||
Obic Co. Ltd. | 200 | 24,642 | ||||||
Otsuka Corp. | 600 | 25,671 | ||||||
188,068 | ||||||||
Leisure Products — 1.7% | ||||||||
Bandai Namco Holdings Inc. | 400 | 19,914 | ||||||
Sankyo Co. Ltd. | 600 | 19,719 | ||||||
Sega Sammy Holdings Inc. | 1,600 | 21,108 | ||||||
Shimano Inc. | 200 | 28,035 | ||||||
Yamaha Corp. | 400 | 19,654 | ||||||
108,430 | ||||||||
Machinery — 6.8% | ||||||||
Amada Holdings Co. Ltd. | 2,000 | 18,690 | ||||||
Daifuku Co. Ltd. | 400 | 23,808 | ||||||
FANUC Corp. | 200 | 33,319 | ||||||
Hino Motors Ltd. | 2,600 | 21,501 | ||||||
Hitachi Construction Machinery Co. Ltd. | 800 | 19,751 | ||||||
Hoshizaki Corp. | 200 | 16,947 | ||||||
IHI Corp. | 800 | 16,828 | ||||||
JTEKT Corp. | 1,800 | 17,572 | ||||||
Kawasaki Heavy Industries Ltd. | 1,000 | 18,171 | ||||||
Komatsu Ltd. | 800 | 16,187 | ||||||
Kubota Corp. | 1,400 | 19,767 | ||||||
Kurita Water Industries Ltd. | 800 | 20,730 | ||||||
Makita Corp. | 600 | 20,776 | ||||||
MINEBEA MITSUMI Inc. | 1,200 | 21,182 | ||||||
MISUMI Group Inc. | 800 | 16,888 | ||||||
Mitsubishi Heavy Industries Ltd. | 400 | 12,679 | ||||||
Nabtesco Corp. | 800 | 21,597 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
NGK Insulators Ltd. | 1,400 | $ | 22,026 | |||||
NSK Ltd. | 2,600 | 19,934 | ||||||
Sumitomo Heavy Industries Ltd. | 600 | 13,083 | ||||||
THK Co. Ltd. | 800 | 18,341 | ||||||
Yaskawa Electric Corp. | 600 | 18,829 | ||||||
428,606 | ||||||||
Marine — 0.5% | ||||||||
Mitsui OSK Lines Ltd. | 800 | 16,621 | ||||||
Nippon Yusen KK | 1,200 | 17,177 | ||||||
33,798 | ||||||||
Media — 0.9% | ||||||||
CyberAgent Inc.(b) | 600 | 22,778 | ||||||
Dentsu Group Inc. | 600 | 15,642 | ||||||
Hakuhodo DY Holdings Inc. | 1,400 | 16,341 | ||||||
54,761 | ||||||||
Metals & Mining — 1.9% | ||||||||
Hitachi Metals Ltd. | 2,000 | 28,610 | ||||||
JFE Holdings Inc. | 2,200 | 20,437 | ||||||
Maruichi Steel Tube Ltd. | 800 | 19,432 | ||||||
Mitsubishi Materials Corp. | 800 | 18,289 | ||||||
Nippon Steel Corp. | 1,200 | 13,528 | ||||||
Sumitomo Metal Mining Co. Ltd. | 800 | 19,917 | ||||||
120,213 | ||||||||
Multiline Retail — 1.6% | ||||||||
Isetan Mitsukoshi Holdings Ltd. | 2,200 | 14,420 | ||||||
J Front Retailing Co. Ltd. | 1,800 | 19,141 | ||||||
Marui Group Co. Ltd. | 1,200 | 23,429 | ||||||
Pan Pacific International Holdings Corp. | 1,600 | 26,522 | ||||||
Ryohin Keikaku Co. Ltd. | 1,400 | 19,183 | ||||||
102,695 | ||||||||
Oil, Gas & Consumable Fuels — 0.8% | ||||||||
Idemitsu Kosan Co. Ltd. | 800 | 19,713 | ||||||
Inpex Corp. | 2,000 | 17,298 | ||||||
JXTG Holdings Inc. | 4,000 | 16,094 | ||||||
53,105 | ||||||||
Paper & Forest Products — 0.3% | ||||||||
Oji Holdings Corp. | 4,300 | 20,530 | ||||||
Personal Products — 1.4% | ||||||||
Kao Corp. | 200 | 14,589 | ||||||
Kobayashi Pharmaceutical Co. Ltd. | 200 | 14,555 | ||||||
Kose Corp. | 200 | 23,993 | ||||||
Pola Orbis Holdings Inc. | 600 | 11,481 | ||||||
Shiseido Co. Ltd. | 400 | 23,800 | ||||||
88,418 | ||||||||
Pharmaceuticals — 4.6% | ||||||||
Astellas Pharma Inc. | 1,400 | 22,052 | ||||||
Chugai Pharmaceutical Co. Ltd. | 200 | 21,722 | ||||||
Daiichi Sankyo Co. Ltd. | 400 | 24,438 | ||||||
Eisai Co. Ltd. | 400 | 29,596 | ||||||
Hisamitsu Pharmaceutical Co. Inc. | 400 | 17,930 | ||||||
Kyowa Kirin Co. Ltd. | 1,000 | 23,826 | ||||||
Nippon Shinyaku Co. Ltd. | 200 | 14,815 | ||||||
Ono Pharmaceutical Co. Ltd. | 1,000 | 20,488 | ||||||
Otsuka Holdings Co. Ltd. | 600 | 22,695 | ||||||
Santen Pharmaceutical Co. Ltd. | 1,400 | 22,480 | ||||||
Shionogi & Co. Ltd. | 400 | 21,675 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 1,200 | 17,366 |
8 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Equal Weighted ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 200 | $ | 12,404 | |||||
Takeda Pharmaceutical Co. Ltd. | 600 | 20,932 | ||||||
292,419 | ||||||||
Professional Services — 0.6% | ||||||||
Persol Holdings Co. Ltd. | 1,200 | 15,898 | ||||||
Recruit Holdings Co. Ltd. | 600 | 20,904 | ||||||
36,802 | ||||||||
Real Estate Management & Development — 2.7% | ||||||||
Aeon Mall Co. Ltd. | 1,200 | 17,032 | ||||||
Daito Trust Construction Co. Ltd. | 200 | 20,350 | ||||||
Daiwa House Industry Co. Ltd. | 600 | 16,573 | ||||||
Hulic Co. Ltd. | 2,200 | 24,638 | ||||||
Mitsubishi Estate Co. Ltd. | 1,000 | 17,095 | ||||||
Mitsui Fudosan Co. Ltd. | 800 | 18,375 | ||||||
Nomura Real Estate Holdings Inc. | 1,000 | 21,583 | ||||||
Sumitomo Realty & Development Co. Ltd. | 400 | 12,505 | ||||||
Tokyu Fudosan Holdings Corp. | 3,600 | 22,728 | ||||||
170,879 | ||||||||
Road & Rail — 4.0% | ||||||||
East Japan Railway Co. | 200 | 15,425 | ||||||
Hankyu Hanshin Holdings Inc. | 600 | 19,747 | ||||||
Keikyu Corp. | 1,200 | 18,223 | ||||||
Keio Corp. | 400 | 19,246 | ||||||
Keisei Electric Railway Co. Ltd. | 600 | 19,219 | ||||||
Kintetsu Group Holdings Co. Ltd. | 400 | 17,299 | ||||||
Kyushu Railway Co. | 600 | 18,050 | ||||||
Nagoya Railroad Co. Ltd. | 800 | 20,908 | ||||||
Nippon Express Co. Ltd. | 400 | 19,172 | ||||||
Odakyu Electric Railway Co. Ltd. | 800 | 15,456 | ||||||
Seibu Holdings Inc. | 1,200 | 16,977 | ||||||
Tobu Railway Co. Ltd. | 800 | 23,882 | ||||||
Tokyu Corp. | 1,200 | 18,423 | ||||||
West Japan Railway Co. | 200 | 14,125 | ||||||
256,152 | ||||||||
Semiconductors & Semiconductor Equipment — 2.5% | ||||||||
Advantest Corp. | 600 | 27,340 | ||||||
Disco Corp. | 200 | 40,569 | ||||||
Renesas Electronics Corp.(a) | 2,400 | 14,485 | ||||||
Rohm Co. Ltd. | 200 | 13,165 | ||||||
SUMCO Corp. | 1,400 | 21,299 | ||||||
Tokyo Electron Ltd. | 200 | 41,394 | ||||||
158,252 | ||||||||
Software — 0.6% | ||||||||
Oracle Corp. Japan. | 200 | 15,649 | ||||||
Trend Micro Inc. | 400 | 19,914 | ||||||
35,563 | ||||||||
Specialty Retail — 1.7% | ||||||||
ABC-Mart Inc. | 400 | 22,843 | ||||||
Nitori Holdings Co. Ltd. | 200 | 27,748 | ||||||
Shimamura Co. Ltd. | 200 | 13,369 | ||||||
USS Co. Ltd. | 1,400 | 22,142 | ||||||
Yamada Denki Co. Ltd. | 4,600 | 22,133 | ||||||
108,235 |
Security | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals — 1.8% | ||||||||
Brother Industries Ltd. | 1,200 | $ | 21,393 | |||||
Canon Inc. | 800 | 20,274 | ||||||
FUJIFILM Holdings Corp. | 400 | 19,569 | ||||||
Konica Minolta Inc. | 2,200 | 11,952 | ||||||
Ricoh Co. Ltd. | 2,000 | 18,634 | ||||||
Seiko Epson Corp. | 1,400 | 19,832 | ||||||
111,654 | ||||||||
Tobacco — 0.3% | ||||||||
Japan Tobacco Inc. | 800 | 15,901 | ||||||
Trading Companies & Distributors — 2.3% | ||||||||
ITOCHU Corp. | 1,200 | 27,384 | ||||||
Marubeni Corp. | 2,800 | 18,607 | ||||||
Mitsubishi Corp. | 800 | 19,951 | ||||||
Mitsui & Co. Ltd. | 1,200 | 19,842 | ||||||
MonotaRO Co. Ltd. | 1,000 | 22,250 | ||||||
Sumitomo Corp. | 1,400 | 20,046 | ||||||
Toyota Tsusho Corp. | 600 | 18,162 | ||||||
146,242 | ||||||||
Transportation Infrastructure — 0.6% | ||||||||
Japan Airport Terminal Co. Ltd. | 600 | 23,474 | ||||||
Kamigumi Co. Ltd. | 800 | 15,375 | ||||||
38,849 | ||||||||
Wireless Telecommunication Services — 1.3% | ||||||||
KDDI Corp. | 800 | 22,680 | ||||||
NTT DOCOMO Inc. | 800 | 21,713 | ||||||
Softbank Corp. | 1,600 | 20,952 | ||||||
SoftBank Group Corp. | 400 | 18,590 | ||||||
83,935 | ||||||||
Total Common Stocks — 99.5% | ||||||||
(Cost: $6,536,592) | 6,302,204 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.74%(c)(d)(e) | 23,747 | 23,763 | ||||||
Total Short-Term Investments — 0.4% | ||||||||
(Cost: $23,756) | 23,763 | |||||||
Total Investments in Securities — 99.9% | ||||||||
(Cost: $6,560,348) | 6,325,967 | |||||||
Other Assets, Less Liabilities — 0.1% | 3,466 | |||||||
Net Assets — 100.0% | $ | 6,329,433 |
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized 7-day yield as of period-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S c h e d u l e o f I n v e s t m e n t s | 9 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Equal Weighted ETF |
February 29, 2020 |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 23,747 | 23,747 | $ | 23,763 | $ | 745 | (b) | $ | 6 | $ | 7 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,000 | (1,000 | ) | — | — | 18 | — | — | ||||||||||||||||||||
$ | 23,763 | $ | 763 | $ | 6 | $ | 7 |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Value/ | ||||||||||||||||
Notional | Unrealized | |||||||||||||||
Number of | Expiration | Amount | Appreciation | |||||||||||||
Description | Contracts | Date | (000 | ) | (Depreciation) | |||||||||||
Long Contracts | ||||||||||||||||
TOPIX Index | 1 | 03/12/20 | $ | 14 | $ | (2,160 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 2,160 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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 six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 5,317 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (1,726 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 30,038 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
10 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Equal Weighted ETF |
February 29, 2020
Fair Value Measurements (continued)
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 6,302,204 | $ | — | $ | — | $ | 6,302,204 | ||||||||
Money Market Funds | 23,763 | — | — | 23,763 | ||||||||||||
$ | 6,325,967 | $ | — | $ | — | $ | 6,325,967 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (2,160 | ) | $ | — | $ | — | $ | (2,160 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 11 |
Schedule of Investments (unaudited) | iShares® MSCI Japan Value ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
Yamato Holdings Co. Ltd. | 900 | $ | 14,201 | |||||
Airlines — 0.2% | ||||||||
Japan Airlines Co. Ltd. | 600 | 14,896 | ||||||
Auto Components — 4.0% | ||||||||
Aisin Seiki Co. Ltd . | 600 | 19,469 | ||||||
Bridgestone Corp . | 2,400 | 80,234 | ||||||
Denso Corp. | 1,800 | 70,421 | ||||||
NGK Spark Plug Co. Ltd . | 600 | 9,873 | ||||||
Sumitomo Electric Industries Ltd. | 3,300 | 39,481 | ||||||
Sumitomo Rubber Industries Ltd. | 900 | 9,370 | ||||||
Toyoda Gosei Co. Ltd. | 300 | 6,414 | ||||||
Toyota Industries Corp | 600 | 31,762 | ||||||
Yokohama Rubber Co. Ltd. (The) | 600 | 9,773 | ||||||
276,797 | ||||||||
Automobiles — 14.2% | ||||||||
Honda Motor Co. Ltd. | 6,900 | 179,081 | ||||||
Isuzu Motors Ltd. | 2,400 | 22,606 | ||||||
Mazda Motor Corp. | 2,400 | 16,688 | ||||||
Mitsubishi Motors Corp. | 3,300 | 10,983 | ||||||
Nissan Motor Co. Ltd. | 10,200 | 43,839 | ||||||
Subaru Corp. | 2,700 | 65,569 | ||||||
Toyota Motor Corp. | 9,600 | 634,304 | ||||||
Yamaha Motor Co. Ltd. | 1,200 | 19,224 | ||||||
992,294 | ||||||||
Banks — 11.1% | ||||||||
Aozora Bank Ltd. | 600 | 15,030 | ||||||
Bank of Kyoto Ltd. (The) | 300 | 10,221 | ||||||
Chiba Bank Ltd. (The) | 2,400 | 11,859 | ||||||
Concordia Financial Group Ltd. | 4,500 | 15,519 | ||||||
Fukuoka Financial Group Inc | 600 | 9,145 | ||||||
Japan Post Bank Co. Ltd. | 1,800 | 16,087 | ||||||
Mebuki Financial Group Inc. | 3,900 | 7,629 | ||||||
Mitsubishi UFJ Financial Group Inc. | 52,200 | 257,407 | ||||||
Mizuho Financial Group Inc. | 102,900 | 140,806 | ||||||
Resona Holdings Inc | 8,700 | 33,004 | ||||||
Seven Bank Ltd. | 900 | 2,370 | ||||||
Shinsei Bank Ltd | 900 | 11,990 | ||||||
Shizuoka Bank Ltd. (The) | 1,800 | 11,381 | ||||||
Sumitomo Mitsui Financial Group Inc. | 5,700 | 184,108 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 1,500 | 51,453 | ||||||
778,009 | ||||||||
Building Products — 0.8% | ||||||||
AGC Inc | 900 | 25,866 | ||||||
LIXIL Group Corp. | 1,200 | 18,022 | ||||||
TOTO Ltd. | 300 | 11,389 | ||||||
55,277 | ||||||||
Capital Markets — 1.8% | ||||||||
Daiwa Securities Group Inc. | 6,300 | 26,820 | ||||||
Japan Exchange Group Inc. | 900 | 15,144 | ||||||
Nomura Holdings Inc. | 14,100 | 62,680 | ||||||
SBI Holdings Inc | 900 | 18,148 | ||||||
122,792 | ||||||||
Chemicals — 4.1% | ||||||||
Asahi Kasei Corp. | 5,400 | 45,091 | ||||||
Daicel Corp. | 1,200 | 10,357 | ||||||
JSR Corp. | 900 | 15,853 |
Security | Shares | Value | ||||||
Chemicals (continued) | ||||||||
Kuraray Co. Ltd | 1,500 | $ | 15,631 | |||||
Mitsubishi Chemical Holdings Corp | 5,400 | 36,361 | ||||||
Mitsubishi Gas Chemical Co. Inc | 600 | 9,100 | ||||||
Mitsui Chemicals Inc. | 900 | 19,516 | ||||||
Nitto Denko Corp. | 600 | 30,149 | ||||||
Showa Denko KK | 600 | 12,972 | ||||||
Sumitomo Chemical Co. Ltd. | 6,600 | 24,047 | ||||||
Teijin Ltd | 900 | 14,810 | ||||||
Toray Industries Inc. | 6,000 | 34,749 | ||||||
Tosoh Corp. | 1,200 | 16,476 | ||||||
285,112 | ||||||||
Commercial Services & Supplies — 1.0% | ||||||||
Dai Nippon Printing Co. Ltd. | 900 | 21,652 | ||||||
Secom Co. Ltd. | 300 | 23,849 | ||||||
Toppan Printing Co. Ltd | 1,200 | 20,926 | ||||||
66,427 | ||||||||
Construction & Engineering — 1.4% | ||||||||
JGC Holdings Corp. | 900 | 11,056 | ||||||
Kajima Corp | 2,100 | 22,642 | ||||||
Obayashi Corp. | 2,700 | 27,259 | ||||||
Shimizu Corp. | 1,800 | 16,387 | ||||||
Taisei Corp. | 600 | 20,553 | ||||||
97,897 | ||||||||
Construction Materials — 0.2% | ||||||||
Taiheiyo Cement Corp. | 600 | 14,813 | ||||||
Consumer Finance — 0.3% | ||||||||
AEON Financial Service Co. Ltd. | 600 | 8,722 | ||||||
Credit Saison Co. Ltd | 600 | 8,722 | ||||||
17,444 | ||||||||
Containers & Packaging — 0.1% | ||||||||
Toyo Seikan Group Holdings Ltd | 600 | 9,623 | ||||||
Diversified Financial Services — 1.6% | ||||||||
Mitsubishi UFJ Lease & Finance Co. Ltd.. | 1,500 | 8,580 | ||||||
ORIX Corp. | 5,700 | 92,054 | ||||||
Tokyo Century Corp | 300 | 12,460 | ||||||
113,094 | ||||||||
Diversified Telecommunication Services — 1.9% | ||||||||
Nippon Telegraph & Telephone Corp.. | 5,700 | 133,668 | ||||||
Electric Utilities — 1.9% | ||||||||
Chubu Electric Power Co. Inc. | 2,700 | 35,231 | ||||||
Chugoku Electric Power Co. Inc. (The). | 1,200 | 15,975 | ||||||
Kansai Electric Power Co. Inc. (The). | 3,000 | 32,388 | ||||||
Kyushu Electric Power Co. Inc | 1,500 | 10,875 | ||||||
Tohoku Electric Power Co. Inc. | 1,800 | 15,820 | ||||||
Tokyo Electric Power Co. Holdings Inc.(a). | 6,600 | 25,087 | ||||||
135,376 | ||||||||
Electrical Equipment — 1.4% | ||||||||
Mitsubishi Electric Corp | 7,800 | 99,141 | ||||||
Electronic Equipment, Instruments & Components — 1.2% | ||||||||
Alps Alpine Co. Ltd. | 900 | 13,842 | ||||||
Hitachi Ltd. | 1,500 | 50,577 | ||||||
Omron Corp | 300 | 16,243 | ||||||
80,662 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 2.4% | ||||||||
Daiwa House REIT Investment Corp.. | 9 | 22,461 | ||||||
Japan Prime Realty Investment Corp. | 3 | 13,211 |
12 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Value ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) | ||||||||
Japan Real Estate Investment Corp. | 3 | $ | 20,470 | |||||
Japan Retail Fund Investment Corp. | 12 | 22,818 | ||||||
Nippon Building Fund Inc | 3 | 22,500 | ||||||
Nippon Prologis REIT Inc | 3 | 8,141 | ||||||
Nomura Real Estate Master Fund Inc. | 18 | 28,586 | ||||||
Orix JREIT Inc | 6 | 11,403 | ||||||
United Urban Investment Corp | 12 | 19,202 | ||||||
168,792 | ||||||||
Food Products — 0.5% | ||||||||
NH Foods Ltd | 300 | 11,320 | ||||||
Nisshin Seifun Group Inc. | 300 | 5,078 | ||||||
Toyo Suisan Kaisha Ltd | 300 | 11,890 | ||||||
Yamazaki Baking Co. Ltd | 300 | 5,104 | ||||||
33,392 | ||||||||
Gas Utilities — 0.9% | ||||||||
Osaka Gas Co. Ltd. | 1,500 | 24,267 | ||||||
Toho Gas Co. Ltd. | 300 | 10,249 | ||||||
Tokyo Gas Co. Ltd. | 1,500 | 30,357 | ||||||
64,873 | ||||||||
Health Care Providers & Services — 0.2% | ||||||||
Medipal Holdings Corp. | 900 | 16,454 | ||||||
Household Durables — 4.1% | ||||||||
Casio Computer Co. Ltd. | 600 | 10,329 | ||||||
Iida Group Holdings Co. Ltd. | 600 | 8,116 | ||||||
Nikon Corp. | 1,500 | 15,422 | ||||||
Panasonic Corp. | 9,600 | 91,715 | ||||||
Sekisui House Ltd. | 2,700 | 52,991 | ||||||
Sony Corp. | 1,800 | 110,321 | ||||||
288,894 | ||||||||
Independent Power and Renewable Electricity Producers — 0.2% | ||||||||
Electric Power Development Co. Ltd.. | 600 | 12,883 | ||||||
Industrial Conglomerates — 0.4% | ||||||||
Toshiba Corp. | 900 | 24,406 | ||||||
Insurance — 3.6% | ||||||||
Dai-ichi Life Holdings Inc. | 4,500 | 61,681 | ||||||
Japan Post Holdings Co. Ltd. | 6,600 | 57,559 | ||||||
Japan Post Insurance Co. Ltd. | 900 | 13,826 | ||||||
MS&AD Insurance Group Holdings Inc. | 2,100 | 67,810 | ||||||
Sompo Holdings Inc | 600 | 22,339 | ||||||
Sony Financial Holdings Inc. | 300 | 6,002 | ||||||
T&D Holdings Inc. | 2,400 | 23,696 | ||||||
252,913 | ||||||||
Interactive Media & Services — 0.6% | ||||||||
Z Holdings Corp | 11,400 | 41,535 | ||||||
IT Services — 1.3% | ||||||||
Fujitsu Ltd. | 900 | 93,534 | ||||||
Leisure Products — 0.1% | ||||||||
Sankyo Co. Ltd. | 300 | 9,860 | ||||||
Machinery — 5.1% | ||||||||
Amada Holdings Co. Ltd. | 1,500 | 14,018 | ||||||
FANUC Corp. | 600 | 99,958 | ||||||
Hino Motors Ltd. | 1,200 | 9,924 | ||||||
Hitachi Construction Machinery Co. Ltd. | 600 | 14,813 | ||||||
IHI Corp. | 300 | 6,311 | ||||||
JTEKT Corp | 600 | 5,857 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Kawasaki Heavy Industries Ltd | 300 | $ | 5,451 | |||||
Komatsu Ltd. | 3,900 | 78,911 | ||||||
Kubota Corp | 1,500 | 21,179 | ||||||
Makita Corp | 600 | 20,776 | ||||||
Mitsubishi Heavy Industries Ltd.. | 1,200 | 38,036 | ||||||
NGK Insulators Ltd. | 600 | 9,440 | ||||||
NSK Ltd. | 1,800 | 13,801 | ||||||
Sumitomo Heavy Industries Ltd. | 600 | 13,083 | ||||||
THK Co. Ltd | 300 | 6,878 | ||||||
358,436 | ||||||||
Marine — 0.2% | ||||||||
Mitsui OSK Lines Ltd | 300 | 6,233 | ||||||
Nippon Yusen KK | 600 | 8,588 | ||||||
14,821 | ||||||||
Media — 0.3% | ||||||||
Dentsu Group Inc. | 900 | 23,463 | ||||||
Metals & Mining — 1.5% | ||||||||
Hitachi Metals Ltd | 900 | 12,874 | ||||||
JFE Holdings Inc. | 2,100 | 19,508 | ||||||
Maruichi Steel Tube Ltd | 300 | 7,287 | ||||||
Mitsubishi Materials Corp | 300 | 6,859 | ||||||
Nippon Steel Corp | 3,300 | 37,202 | ||||||
Sumitomo Metal Mining Co. Ltd. | 900 | 22,407 | ||||||
106,137 | ||||||||
Multiline Retail — 0.4% | ||||||||
Isetan Mitsukoshi Holdings Ltd | 1,500 | 9,832 | ||||||
J Front Retailing Co. Ltd. | 900 | 9,570 | ||||||
Marui Group Co. Ltd | 600 | 11,715 | ||||||
31,117 | ||||||||
Oil, Gas & Consumable Fuels — 1.6% | ||||||||
Idemitsu Kosan Co. Ltd | 692 | 17,052 | ||||||
Inpex Corp. | 4,500 | 38,920 | ||||||
JXTG Holdings Inc | 13,500 | 54,318 | ||||||
110,290 | ||||||||
Paper & Forest Products — 0.2% | ||||||||
Oji Holdings Corp. | 3,600 | 17,188 | ||||||
Pharmaceuticals — 3.8% | ||||||||
Kyowa Kirin Co. Ltd. | 600 | 14,296 | ||||||
Otsuka Holdings Co. Ltd. | 900 | 34,042 | ||||||
Takeda Pharmaceutical Co. Ltd. | 6,300 | 219,783 | ||||||
268,121 | ||||||||
Real Estate Management & Development — 1.4% | ||||||||
Aeon Mall Co. Ltd | 300 | 4,258 | ||||||
Daiwa House Industry Co. Ltd. | 2,400 | 66,294 | ||||||
Nomura Real Estate Holdings Inc. | 600 | 12,950 | ||||||
Tokyu Fudosan Holdings Corp | 2,700 | 17,046 | ||||||
100,548 | ||||||||
Road & Rail — 2.6% | ||||||||
Central Japan Railway Co. | 600 | 98,902 | ||||||
Hankyu Hanshin Holdings Inc. | 600 | 19,747 | ||||||
Kyushu Railway Co. | 600 | 18,050 | ||||||
West Japan Railway Co | 600 | 42,375 | ||||||
179,074 | ||||||||
Semiconductors & Semiconductor Equipment — 0.3% | ||||||||
SUMCO Corp | 1,200 | 18,256 |
S c h e d u l e o f I n v e s t m e n t s | 13 |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Value ETF |
February 29, 2020 | (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software — 0.2% | ||||||||
Trend Micro Inc. | 300 | $ | 14,935 | |||||
Specialty Retail — 0.2% | ||||||||
Yamada Denki Co. Ltd. | 2,700 | 12,991 | ||||||
Technology Hardware, Storage & Peripherals — 2.6% | ||||||||
Brother Industries Ltd | 900 | 16,045 | ||||||
Canon Inc. | 4,200 | 106,436 | ||||||
Konica Minolta Inc. | 2,100 | 11,409 | ||||||
Ricoh Co. Ltd. | 3,000 | 27,951 | ||||||
Seiko Epson Corp. | 1,200 | 16,999 | ||||||
178,840 | ||||||||
Tobacco — 1.5% | ||||||||
Japan Tobacco Inc. | 5,100 | 101,371 | ||||||
Trading Companies & Distributors — 6.0% | ||||||||
ITOCHU Corp. | 3,000 | 68,461 | ||||||
Marubeni Corp. | 6,600 | 43,859 | ||||||
Mitsubishi Corp. | 3,600 | 89,779 | ||||||
Mitsui & Co. Ltd. | 7,200 | 119,049 | ||||||
Sumitomo Corp. | 5,100 | 73,026 | ||||||
Toyota Tsusho Corp | 900 | 27,242 | ||||||
421,416 | ||||||||
Transportation Infrastructure — 0.2% | ||||||||
Kamigumi Co. Ltd | 600 | 11,531 |
Security | Shares | Value | ||||||
Wireless Telecommunication Services — 9.6% | ||||||||
KDDI Corp. | 7,500 | $ | 212,627 | |||||
NTT DOCOMO Inc. | 5,700 | 154,700 | ||||||
SoftBank Group Corp | 6,600 | 306,734 | ||||||
674,061 | ||||||||
Total Common Stocks — 99.4% | ||||||||
(Cost: $7,370,290) | 6,957,655 | |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.52%(b)(c) | 1,000 | 1,000 | ||||||
Total Short-Term Investments — 0.0% | ||||||||
(Cost: $1,000) | 1,000 | |||||||
Total Investments in Securities — 99.4% | ||||||||
(Cost: $7,371,290) | 6,958,655 | |||||||
Other Assets, Less Liabilities — 0.6% | 43,312 | |||||||
Net Assets — 100.0% | $ | 7,001,967 |
(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 affiliates of the Fund during the six months ended February 29, 2020, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/19 | Net Activity | Shares Held at 02/29/20 | Value at 02/29/20 | Income | Net Realized Gain (Loss) | (a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | 1,000 | 1,000 | $ | 1,000 | $ | 20 | $ | — | $ | — |
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
TOPIX Index | 2 | 03/12/20 | $ | 28 | $ | (4,025 | ) |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 29, 2020, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity | ||||
Contracts | ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 4,025 |
(a) | Net cumulative appreciation (depreciation) on futures contracts 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). |
14 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Schedule of Investments (unaudited) (continued) | iShares® MSCI Japan Value ETF |
February 29, 2020 |
For the six months ended February 29, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity | ||||
Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 10,831 | ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | (3,594 | ) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 54,910 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund's investments according to the fair value hierarchy as of February 29, 2020. The breakdown of the Fund's investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 6,957,655 | $ | — | $ | — | $ | 6,957,655 | ||||||||
Money Market Funds | 1,000 | — | — | 1,000 | ||||||||||||
$ | 6,958,655 | $ | — | $ | — | $ | 6,958,655 | |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (4,025 | ) | $ | — | $ | — | $ | (4,025 | ) |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements
S c h e d u l e o f I n v e s t m e n t s | 15 |
Statements of Assets and Liabilities (unaudited)
February 29, 2020
iShares MSCI Japan Equal Weighted ETF | iShares MSCI Japan Value ETF | |||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan)(a) | ||||||||
Unaffiliated(b) | $ | 6,302,204 | $ | 6,957,655 | ||||
Affiliated(c) | 23,763 | 1,000 | ||||||
Cash | 952 | 113 | ||||||
Foreign currency, at value(d) | 7,534 | 14,432 | ||||||
Foreign currency collateral pledged: | ||||||||
Futures contracts(e) | 436 | 872 | ||||||
Receivables: | ||||||||
Investments sold | 81,146 | 81,280 | ||||||
Securities lending income — Affiliated | 14 | — | ||||||
Dividends | 15,155 | 17,070 | ||||||
Tax reclaims | — | 5,234 | ||||||
Total assets | 6,431,204 | 7,077,656 | ||||||
LIABILITIES | ||||||||
Collateral on securities loaned, at value | 23,748 | — | ||||||
Payables: | ||||||||
Investments purchased | 76,267 | 72,927 | ||||||
Variation margin on futures contracts | 933 | 1,863 | ||||||
Investment advisory fees | 823 | 899 | ||||||
Total liabilities | 101,771 | 75,689 | ||||||
NET ASSETS | $ | 6,329,433 | $ | 7,001,967 | ||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 6,657,920 | $ | 7,358,169 | ||||
Accumulated loss | (328,487 | ) | (356,202 | ) | ||||
NET ASSETS | $ | 6,329,433 | $ | 7,001,967 | ||||
Shares outstanding | 200,000 | 300,000 | ||||||
Net asset value | $ | 31.65 | $ | 23.34 | ||||
Shares authorized | Unlimited | Unlimited | ||||||
Par value | None | None | ||||||
(a) Securities loaned, at value | $ | 22,778 | $ | — | ||||
(b) Investments, at cost — Unaffiliated | $ | 6,536,592 | $ | 7,370,290 | ||||
(c) Investments, at cost — Affiliated. | $ | 23,756 | $ | 1,000 | ||||
(d) Foreign currency, at cost | $ | 7,452 | $ | 14,285 | ||||
(e) Foreign currency collateral pledged, at cost | $ | 429 | $ | 860 |
See notes to financial statements
16 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
Statements of Operations (unaudited)
Six Months Ended February 29, 2020
iShares MSCI Japan Equal Weighted ETF | iShares MSCI Japan Value ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Unaffiliated | $ | 78,860 | $ | 126,758 | ||||
Dividends — Affiliated | 18 | 20 | ||||||
Securities lending income — Affiliated — net | 745 | — | ||||||
Foreign taxes withheld | (7,877 | ) | (12,669 | ) | ||||
Total investment income | 71,746 | 114,109 | ||||||
EXPENSES | ||||||||
Investment advisory fees | 5,264 | 5,761 | ||||||
Total expenses | 5,264 | 5,761 | ||||||
Net investment income | 66,482 | 108,348 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated | (4,651 | ) | (59,336 | ) | ||||
Investments — Affiliated | 6 | — | ||||||
In-kind redemptions — Unaffiliated | — | 210,323 | ||||||
Futures contracts | 5,317 | 10,831 | ||||||
Foreign currency transactions | (871 | ) | (2,100 | ) | ||||
Net realized gain (loss) | (199 | ) | 159,718 | |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated | (124,280 | ) | (168,022 | ) | ||||
Investments — Affiliated | 7 | — | ||||||
Futures contracts | (1,726 | ) | (3,594 | ) | ||||
Foreign currency translations. | 194 | 125 | ||||||
Net change in unrealized appreciation (depreciation) | (125,805 | ) | (171,491 | ) | ||||
Net realized and unrealized loss | (126,004 | ) | (11,773 | ) | ||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (59,522 | ) | $ | 96,575 |
See notes to financial statements
F i n a n c i a l S t a t e m e n t s | 17 |
Statements of Changes in Net Assets
iShares MSCI Japan Equal Weighted ETF | iShares MSCI Japan Value ETF | |||||||||||||||
Six Months Ended 02/29/20 (unaudited) | Period From 03/05/19(a) to 08/31/19 | Six Months Ended 02/29/20 (unaudited) | Period From 03/05/19(a) to 08/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 66,482 | $ | 96,336 | $ | 108,348 | $ | 147,267 | ||||||||
Net realized gain (loss) | (199 | ) | (38,242 | ) | 159,718 | (39,295 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (125,805 | ) | (110,394 | ) | (171,491 | ) | (244,623 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | (59,522 | ) | (52,300 | ) | 96,575 | (136,651 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (129,898 | ) | (91,202 | ) | (196,497 | ) | (136,522 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | — | 6,662,355 | (8,724 | ) | 7,383,786 | |||||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (189,420 | ) | 6,518,853 | (108,646 | ) | 7,110,613 | ||||||||||
Beginning of period | 6,518,853 | — | 7,110,613 | — | ||||||||||||
End of period | $ | 6,329,433 | $ | 6,518,853 | $ | 7,001,967 | $ | 7,110,613 |
(a) | Commencement of operations. |
(b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements
18 | 2 0 2 0 i S h a r e s S e m i - A n n u a l R e p o r t t o S h a r e h o l d e r s |
(For a share outstanding throughout each period)
iShares MSCI Japan Equal Weighted ETF | ||||||||
Six Months Ended 02/29/20 (unaudited) | Period From 03/05/19(a) to 08/31/19 | |||||||
Net asset value, beginning of period | $ | 32.59 | $ | 33.43 | ||||
Net investment income(b) | 0.33 | 0.44 | ||||||
Net realized and unrealized loss(c) | (0.62 | ) | (0.82 | ) | ||||
Net decrease from investment operations | (0.29 | ) | (0.38 | ) | ||||
Distributions(d) | ||||||||
From net investment income | (0.65 | ) | (0.46 | ) | ||||
Total distributions | (0.65 | ) | (0.46 | ) | ||||
Net asset value, end of period | $ | 31.65 | $ | 32.59 | ||||
Total Return | ||||||||
Based on net asset value | (1.13 | )%(e) | (1.14 | )%(e) | ||||
Ratios to Average Net Assets | ||||||||
Total expenses | 0.15 | %(f) | 0.15 | %(f) | ||||
Net investment income | 1.89 | %(f) | 2.68 | %(f) | ||||
Supplemental Data | ||||||||
Net assets, end of period (000) | $ | 6,329 | $ | 6,519 | ||||
Portfolio turnover rate(g) | 5 | %(e) | 6 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | 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 | 19 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Japan Value ETF | ||||||||
Six Months Ended 02/29/20 (unaudited) | Period From 03/05/19(a) to 08/31/19 | |||||||
Net asset value, beginning of period | $ | 23.70 | $ | 24.67 | ||||
Net investment income(b) | 0.36 | 0.46 | ||||||
Net realized and unrealized loss(c) | (0.07 | ) | (0.97 | ) | ||||
Net increase (decrease) from investment operations. | 0.29 | (0.51 | ) | |||||
Distributions(d) | ||||||||
From net investment income | (0.65 | ) | (0.46 | ) | ||||
Total distributions | (0.65 | ) | (0.46 | ) | ||||
Net asset value, end of period | $ | 23.34 | $ | 23.70 | ||||
Total Return | ||||||||
Based on net asset value | 0.95 | %(e) | (2.10 | )%(e) | ||||
Ratios to Average Net Assets | ||||||||
Total expenses | 0.15 | %(f) | 0.15 | %(f) | ||||
Net investment income. | 2.82 | %(f) | 3.83 | %(f) | ||||
Supplemental Data | ||||||||
Net assets, end of period (000) | $ | 7,002 | $ | 7,111 | ||||
Portfolio turnover rate(g) | 16 | %(e) | 9 | %(e) |
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements
20 | 2 0 2 0 i S h a r e s S e m i - A n 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 | |||
MSCI Japan Equal Weighted | Non-diversified | |||
MSCI Japan Value | . | Non-diversified |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.
Foreign CurrencyTranslation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 29, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. Th Funds' maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the
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)
Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, 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 valu hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. 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 February 29, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock FundAdvisors (“BFA”), the Funds' investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 29, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value
22 | 2 0 2 0 i S h a r e s S e m i - A n 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)
of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 29, 2020:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received(a) | Non-Cash Collateral Received | Net Amount | ||||||||||||
MSCI Japan Equal Weighted | ||||||||||||||||
Morgan Stanley & Co. LLC | $ | 22,778 | $ | 22,778 | $ | — | $ | — |
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.15%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
N o t e s t o F i n a n c i a l S t a t e m e n t s | 23 |
Notes to Financial Statements (unaudited) (continued)
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 29, 2020, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||||||
MSCI Japan Equal Weighted | . | $ | 172 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 29, 2020, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Japan Equal Weighted | $ | 334,982 | $ | 404,046 | ||||
MSCI Japan Value | 3,653,433 | 1,224,139 |
For the six months ended February 29, 2020, in-kind transactions were as follows: |
In-kind | In-kind | |||||||
iShares ETF | Purchases | Sales | ||||||
MSCI Japan Value | $ | — | $ | 2,524,821 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust's other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds' financial statements.
As of August 31, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||||||
MSCI Japan Equal Weighted | $ | 44,370 | ||||||
MSCI Japan Value | . | 27,245 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
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Notes to Financial Statements (unaudited) (continued)
As of February 29, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Japan Equal Weighted | $ | 6,586,665 | $ | 395,236 | $ | (658,094 | ) | $ | (262,858 | ) | ||||||
MSCI Japan Value | 7,405,046 | 264,294 | (714,710 | ) | (450,416 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. 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. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund's investments. The impact of the pandemic may be short term or may last for an extended period of time.
Credit Risk: Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
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 | 25 |
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
Six Months Ended 02/29/20 | Period Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Japan Equal Weighted | ||||||||||||||||
Shares sold | — | $ | — | 300,000 | $ | 10,028,668 | ||||||||||
Shares redeemed | — | — | (100,000 | ) | (3,366,313 | ) | ||||||||||
Net increase | — | $ | — | 200,000 | $ | 6,662,355 |
Six Months Ended 02/29/20 | Period Ended 08/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Japan Value | ||||||||||||||||
Shares sold | 100,000 | $ | 2,629,581 | 400,000 | $ | 9,866,146 | ||||||||||
Shares redeemed | (100,000 | ) | (2,638,305 | ) | (100,000 | ) | (2,482,360 | ) | ||||||||
Net increase(decrease) | — | $ | (8,724 | ) | 300,000 | $ | 7,383,786 |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court.
12. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Trustees (the “Board”) of iShares MSCI Japan Equal Weighted ETF and iShares MSCI Japan Value ETF met on December 3, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the iShares Funds (each, a “Fund”) pursuant to the Liquidity Rule. The Board has appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s investment strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. A factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. Derivative exposure was considered in the calculation of liquidity classification. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimus amounts of cash. Funds may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
d) | The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) | The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
S t a t e m e n t R e g a r d i n g l i q u i d i t y R i s k M a n a g e m e n t P r o g r a m | 27 |
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.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
MSCI Japan Equal Weighted(a) | $ | 0.478836 | $ | — | $ | 0.170654 | $ | 0.649490 | 74 | % | —% | 26 | % | 100 | % | |||||||||||||||||
MSCI Japan Value(a) | 0.477904 | — | 0.177086 | 0.654990 | 73 | — | 27 | 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. |
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Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at 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 can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
G e n e r a l i n f o r m a t i o n | 29 |
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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company isted above.
©2020 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-819-0220
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) Not applicable.
(a)(4) Not applicable.
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/ Armando Senra
Armando Senra, President (Principal Executive Officer)
Date: | May 05, 2020 |
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/ Armando Senra
Armando Senra, President (Principal Executive Officer)
Date: | May 05, 2020 |
By: /s/ Trent Walker
Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date: | May 05, 2020 |