UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | |
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-09729 | |||||
iShares Trust | ||||||
(Exact name of registrant as specified in charter) | ||||||
c/o BlackRock Fund Advisors | ||||||
400 Howard Street, San Francisco, CA | 94105 | |||||
| (Address of principal executive offices) | (Zip code) | |||||
The Corporation Trust Company 1209 Orange Street, Wilmington, DE 19801 | ||||||
| (Name and address of agent for service) | ||||||
Registrant’s telephone number, including area code: | (415) 670-2000 | |||||
Date of fiscal year end: | July 31, 2023 | |||||
Date of reporting period: | July 31, 2023 | |||||
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith.
JULY
31,
2023
2023
Annual
Report
iShares
Trust
iShares
ESG
Aware
Aggressive
Allocation
ETF
|
EAOA
|
Cboe
BZX
iShares
ESG
Aware
Conservative
Allocation
ETF
|
EAOK
|
Cboe
BZX
iShares
ESG
Aware
Growth
Allocation
ETF
|
EAOR
|
Cboe
BZX
iShares
ESG
Aware
Moderate
Allocation
ETF
|
EAOM
|
Cboe
BZX
Dear
Shareholder,
Despite
an
uncertain
economic
landscape
during
the
12-month
reporting
period
ended
July
31,
2023,
the
resilience
of
the
U.S.
economy
in
the
face
of
ever
tighter
financial
conditions
provided
an
encouraging
backdrop
for
investors.
While
inflation
was
near
multi-decade
highs
at
the
beginning
of
the
period,
it
declined
precipitously
as
commodity
prices
dropped.
Labor
shortages
also
moderated,
although
wages
continued
to
grow
and
unemployment
rates
reached
the
lowest
levels
in
decades.
This
robust
labor
market
powered
further
growth
in
consumer
spending,
backstopping
the
economy.
Equity
returns
were
solid,
as
the
durability
of
consumer
sentiment
eased
investors’
concerns
about
the
economy’s
trajectory.
The
U.S.
economy
resumed
growth
in
the
third
quarter
of
2022
and
continued
to
expand
thereafter.
Most
major
classes
of
equities
advanced,
including
large-
and
small-capitalization
U.S.
stocks
and
equities
from
developed
and
emerging
markets.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
elevated
inflation
and
attempted
to
anticipate
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
although
high-yield
corporate
bond
prices
fared
significantly
better
than
investment-
grade
bonds
as
demand
from
yield-seeking
investors
remained
strong.
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
has
been
more
persistent
than
expected,
raised
interest
rates
seven
times
during
the
12-month
period
ended
July
31,
2023.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
incrementally
reduced
its
balance
sheet
by
not
replacing
securities
that
reach
maturity.
However,
the
Fed
declined
to
raise
interest
rates
at
its
June
2023
meeting,
the
first
time
it
paused
its
tightening
in
the
current
cycle,
before
again
raising
rates
in
July
2023.
Supply
constraints
appear
to
have
become
an
embedded
feature
of
the
new
macroeconomic
environment,
making
it
difficult
for
developed
economies
to
increase
production
without
sparking
higher
inflation.
Geopolitical
fragmentation
and
an
aging
population
risk
further
exacerbating
these
constraints,
keeping
the
labor
market
tight
and
wage
growth
high.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes
and
recently
opted
for
a
pause,
we
believe
that
the
new
economic
regime
means
that
the
Fed
will
need
to
maintain
high
rates
for
an
extended
period
to
keep
inflation
under
control.
Furthermore,
ongoing
structural
changes
may
mean
that
the
Fed
will
be
hesitant
to
cut
interest
rates
in
the
event
of
faltering
economic
activity
lest
inflation
accelerate
again.
We
believe
investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt.
While
we
favor
an
overweight
position
to
developed
market
equities
in
the
long
term,
we
prefer
an
underweight
stance
in
the
near-term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
macroeconomic
constraints.
Nevertheless,
we
are
overweight
on
emerging
market
stocks
in
the
near-term
as
growth
trends
for
emerging
markets
appear
brighter.
We
also
believe
that
stocks
with
an
A.I.
tilt
should
benefit
from
an
investment
cycle
that
is
set
to
support
revenues
and
margins.
We
are
neutral
on
credit
overall
amid
tightening
credit
and
financial
conditions;
however,
there
are
selective
opportunities
in
the
near
term.
For
fixed
income
investing
with
a
six-
to
twelve-month
horizon,
we
see
the
most
attractive
investments
in
short-term
U.S.
Treasuries,
U.S.
inflation-linked
bonds,
U.S.
mortgage-backed
securities,
and
hard-currency
emerging
market
bonds.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
iShares.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock,
Inc.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
July
31,
2023
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
13.52
%
13.02
%
U.S.
small
cap
equities
(Russell
2000
®
Index)
4.51
7.91
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
6.65
16.79
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
3.26
8.35
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
2.34
3.96
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(2.08
)
(7.56
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(1.02
)
(3.37
)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
0.20
0.93
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
2.92
4.42
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Market
Overview
.......................................................................................................
4
Fund
Summary
........................................................................................................
5
About
Fund
Performance
..................................................................................................
13
Disclosure
of Expenses
...................................................................................................
13
Schedules
of
Investments
.................................................................................................
14
Financial
Statements:
Statements
of
Assets
and
Liabilities
.........................................................................................
22
Statements
of
Operations
................................................................................................
23
Statements
of
Changes
in
Net
Assets
........................................................................................
24
Financial
Highlights
.....................................................................................................
26
Notes
to
Financial
Statements
...............................................................................................
30
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
36
Important
Tax
Information
(Unaudited)
.................................................................................................
37
Board
Review
and
Approval
of
Investment
Advisory
Contract
............................................................................
38
Supplemental
Information
.................................................................................................
42
Trustee
and
Officer
Information
..............................................................................................
43
General
Information
.....................................................................................................
45
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
46
Market
Overview
2023
iShares
Annual
Report
To
Shareholders
4
iShares
Trust
Global Market
Overview
Global
equity
markets
advanced
during
the
12
months
ended July
31,
2023
(“reporting
period”),
supported
by
continued
economic
growth
and
moderating
inflation.
The
MSCI
ACWI,
a
broad
global
equity
index
that
includes
both
developed
and
emerging
markets,
returned
12.91%
in
U.S.
dollar
terms
for
the
reporting
period.
Despite
concerns
about
the
impact
of
higher
interest
rates
and
rising
prices,
the
global
economy
continued
to
grow,
albeit
at
a
slower
pace
than
during
the
initial
post-pandemic
recovery.
Inflation
began
to
subside
in
most
regions
of
the
world,
and
lower
energy
prices
reduced
pressure
on
consumers,
leading
consumer
and
business
sentiment
to
improve.
While
the
Russian
invasion
of
Ukraine
continued
to
disrupt
trade
in
Europe
and
elsewhere,
market
adaptation
lessened
the
economic
impact
of
the
ongoing
war.
The
prices
of
oil,
natural
gas,
and
wheat
all
declined
during
the
reporting
period,
easing
pressure
on
the
world’s
economies.
The
U.S.
Federal
Reserve
(“Fed”)
tightened
monetary
policy
rapidly,
raising
short-term
interest
rates
seven
times
during
the
reporting
period.
The
pace
of
tightening
decelerated
as
the
Fed
twice
lowered
the
increment
of
increase
before
pausing
entirely
in
June
2023,
the
first
time
it
declined
to
take
action
since
the
tightening
cycle
began.
However,
the
Fed
then
raised
interest
rates
again
at
its
July
2023
meeting
and
stated
that
it
would
continue
to
monitor
economic
data.
The
Fed
also
continued
to
decrease
the
size
of
its
balance
sheet
by
reducing
the
store
of
U.S.
Treasuries
it
had
accumulated
to
stabilize
markets
in
the
early
phases
of
the
coronavirus
pandemic.
Despite
the
tightening
financial
conditions,
the
U.S.
economy
demonstrated
continued
strength,
and
U.S.
equities
advanced.
The
economy
returned
to
growth
in
the
third
quarter
of
2022
and
showed
robust,
if
slightly
slower,
growth
thereafter.
Consumers
powered
the
economy
and
increased
their
spending
in
both
nominal
and
inflation-adjusted
terms.
Spending
was
helped
by
a
strong
labor
market,
as
unemployment
remained
very
low
in
historic
terms,
and
the
total
number
of
employed
persons
reached
an
all-time
high.
Tightness
in
the
labor
market
drove
higher
wages,
although
wage
growth
slowed
as
the
reporting
period
continued.
European
stocks
outpaced
their
counterparts
in
most
other
regions
of
the
globe,
advancing
strongly
for
the
reporting
period
despite
modest
economic
growth.
European
stocks
benefited
from
a
solid
recovery
following
the
early
phases
of
the
war
in
Ukraine.
While
the
conflict
disrupted
critical
natural
gas
supplies,
new
sources
were
secured
and
prices
declined,
while
a
warm
winter
helped
moderate
consumption.
The
European
Central
Bank
(“ECB”)
responded
to
the
highest
inflation
since
the
introduction
of
the
euro
by
raising
interest
rates
eight
times
and
beginning
to
reduce
the
size
of
its
debt
holdings.
Stocks
in
the
Asia-Pacific
region
gained,
albeit
at
a
slower
pace
than
other
regions
of
the
world.
Japan
returned
to
growth
in
the
fourth
quarter
of
2022
and
first
quarter
of
2023,
as
strong
business
investment
and
exports
helped
boost
the
economy
and
support
Japanese
equities.
However,
Chinese
stocks
were
negatively
impacted
by
slowing
economic
growth.
While
investors
were
initially
optimistic
following
China’s
lifting
of
several
pandemic-related
lockdowns
in
December
2022,
subsequent
performance
disappointed,
and
tensions
with
the
U.S.
increased.
Emerging
market
stocks
advanced,
as
the
improving
global
economic
environment
reassured
investors.
The
declining
value
of
the
U.S.
dollar
relative
to
many
other
currencies
and
the
slowing
pace
of
the
Fed’s
interest
rate
increases
also
supported
emerging
market
stocks.
Fund
Summary
as
of
July
31,
2023
5
Fund
Summary
iShares
®
ESG
Aware
Aggressive
Allocation
ETF
Investment
Objective
The
iShares
ESG
Aware
Aggressive
Allocation
ETF
(the
“
Fund
”
)
seeks
to
track
the
investment
results
of
an
index
composed
of
a
portfolio
of
underlying
equity
and
fixed
income
funds
with
positive
environmental,
social
and
governance
characteristics
intended
to
represent
an
aggressive
risk
profile,
as
represented
by
the
BlackRock
ESG
Aware
Aggressive
Allocation
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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
June
12,
2020.
The
first
day
of
secondary
market
trading
was
June
18,
2020.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8.82%
9.11%
8.82%
31.47%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8.80
9.10
8.80
31.42
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8.81
9.16
8.81
31.62
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,072.70
$
0.10
$
1,000.00
$
1,024.70
$
0.10
0.02%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
The
fees
and
expenses
of
the
underlying
funds
in
which
the
Fund
invests
are
not
included
in
the
Fund's
annualized
expense
ratio.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
to
Shareholders
6
iShares
®
ESG
Aware
Aggressive
Allocation
ETF
Portfolio
Management
Commentary
Investor
interest
in
sustainable
investment
strategies
was
mixed
during
the
reporting
period.
In
Europe,
sustainable
investments
continued
to
attract
net
inflows,
although
the
rate
of
net
purchases
slowed
in
the
second
quarter
of
2023.
In
the
U.S.,
however,
there
were
net
outflows
during
the
period
amid
persistent
inflation,
rising
interest
rates,
and
recessionary
fears.
The
Index’s
mix
of
stock
and
bond
funds
with
positive
ESG
characteristics
designed
to
represent
an
aggressive
target
risk
allocation
strategy
advanced
for
the
reporting
period.
The
equity
allocation,
which
represented
approximately
80%
of
the
Index
on
average
for
the
reporting
period,
contributed
the
most
to
the
Index’s
return.
U.S.
stocks
were
the
leading
source
of
strength,
as
the
information
technology
sector
was
buoyed
by
investor
optimism
surrounding
new
developments
in
artificial
intelligence
(“AI”)
applications.
The
semiconductors
and
semiconductor
equipment
industry
gained
notably,
driven
by
strong
interest
in
the
computationally
intensive
area
of
generative
AI,
benefiting
companies
that
manufacture
the
specialty
microchips
that
can
be
used
for
these
applications.
The
U.S.
software
and
services
industry
also
advanced,
as
an
investment
by
a
large
systems
software
company
in
a
leading
AI
company
enabled
the
incorporation
of
AI
into
a
search
engine,
driving
optimism
about
other
future
applications.
International
stocks
from
developed
economies
also
contributed
to
the
Index’s
return,
led
by
Japanese
and
French
stocks.
The
Japanese
industrials
sector
advanced
amidst
a
broader
economic
rebound.
French
stocks
climbed
due
to
strength
in
the
consumer
discretionary
sector.
On
the
downside,
the
Index’s
bond
allocation,
which
represented
approximately
20%
of
the
Index
on
average
for
the
reporting
period,
detracted
from
the
Index’s
performance.
U.S.
bonds
declined
the
most,
as
the
Fed’s
seven
interest
rate
increases
during
the
reporting
period
worked
against
bond
prices,
making
existing
bonds
relatively
less
attractive.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Class
Percent
of
Total
Investments
(a)
Domestic
Equity
.................................
53.9
%
International
Equity
...............................
27.6
Domestic
Fixed
Income
............................
18.5
FIVE
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
iShares
ESG
Aware
MSCI
USA
ETF
.....................
48.7
%
iShares
ESG
Aware
MSCI
EAFE
ETF
....................
19.1
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
..............
18.5
iShares
ESG
Aware
MSCI
EM
ETF
......................
8.5
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
.............
5.2
(a)
Excludes
money
market
funds.
Fund
Summary
as
of
July
31,
2023
7
Fund
Summary
iShares
®
ESG
Aware
Conservative
Allocation
ETF
Investment
Objective
The
iShares
ESG
Aware
Conservative
Allocation
ETF
(the
“
Fund
”
)
seeks
to
track
the
investment
results
of
an
index
composed
of
a
portfolio
of
underlying
equity
and
fixed
income
funds
with
positive
environmental,
social
and
governance
characteristics
intended
to
represent
a
conservative
risk
profile,
as
represented
by
the
BlackRock
ESG
Aware
Conservative
Allocation
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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
June
12,
2020.
The
first
day
of
secondary
market
trading
was
June
18,
2020.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.93%
0.98%
0.93%
3.09%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.93
0.98
0.93
3.10
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.95
1.03
0.95
3.26
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,019.80
$
0.30
$
1,000.00
$
1,024.50
$
0.30
0.06%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
The
fees
and
expenses
of
the
underlying
funds
in
which
the
Fund
invests
are
not
included
in
the
Fund's
annualized
expense
ratio.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
to
Shareholders
8
iShares
®
ESG
Aware
Conservative
Allocation
ETF
Portfolio
Management
Commentary
Investor
interest
in
sustainable
investment
strategies
was
mixed
during
the
reporting
period.
In
Europe,
sustainable
investments
continued
to
attract
net
inflows,
although
the
rate
of
net
purchases
slowed
in
the
second
quarter
of
2023.
In
the
U.S.,
however,
there
were
net
outflows
during
the
period
amid
persistent
inflation,
rising
interest
rates,
and
recessionary
fears.
The
Index’s
mix
of
stock
and
bond
funds
with
positive
ESG
characteristics
designed
to
represent
a
conservative
target
risk
allocation
strategy
advanced
modestly
for
the
reporting
period.
The
equity
allocation,
which
represented
approximately
30%
of
the
Index
on
average
for
the
reporting
period,
contributed
the
most
to
the
Index’s
return.
U.S.
stocks
were
the
leading
source
of
strength,
as
the
information
technology
sector
was
buoyed
by
investor
optimism
surrounding
new
developments
in
artificial
intelligence
(“AI”)
applications.
The
semiconductors
and
semiconductor
equipment
industry
gained
notably,
driven
by
strong
interest
in
the
computationally
intensive
area
of
generative
AI,
benefiting
companies
that
manufacture
the
specialty
microchips
that
can
be
used
for
these
applications.
International
stocks
from
developed
economies
also
contributed,
led
by
Japanese
stocks
amid
an
economic
rebound.
On
the
downside,
the
Index’s
bond
allocation,
which
represented
approximately
70%
of
the
Index
on
average
for
the
reporting
period,
detracted
from
the
Index’s
performance.
U.S.
bonds
detracted
the
most,
as
the
Fed’s
seven
interest
rate
increases
during
the
reporting
period
worked
against
bond
prices,
making
existing
bonds
relatively
less
attractive.
U.S.
Treasuries
declined,
as
the
continued
strength
of
the
U.S.
economy
and
the
Fed’s
outlook
led
investors
to
reassess
the
trajectory
of
interest
rates.
Issuance
of
U.S.
Treasuries
was
substantial
amid
high
deficit
spending.
Mortgage-backed
securities
(“MBS”)
also
detracted
from
the
Index’s
return,
as
the
Fed
moved
from
net-buying
to
net-selling
MBS,
and
investor
interest
in
MBS
cooled,
driving
mortgage
rates
to
the
highest
level
in
21
years.
Corporate
bonds
also
declined,
weighed
on
by
inflationary
pressure
and
higher
interest
rates.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Class
Percent
of
Total
Investments
(a)
Domestic
Fixed
Income
............................
68.0
%
Domestic
Equity
.................................
21.2
International
Equity
...............................
10.8
FIVE
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
..............
68.0
%
iShares
ESG
Aware
MSCI
USA
ETF
.....................
19.2
iShares
ESG
Aware
MSCI
EAFE
ETF
....................
7.5
iShares
ESG
Aware
MSCI
EM
ETF
......................
3.3
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
.............
2.0
(a)
Excludes
money
market
funds.
Fund
Summary
as
of
July
31,
2023
9
Fund
Summary
iShares
®
ESG
Aware
Growth
Allocation
ETF
Investment
Objective
The
iShares
ESG
Aware
Growth
Allocation
ETF
(the
“
Fund
”
)
seeks
to
track
the
investment
results
of
an
index
composed
of
a
portfolio
of
underlying
equity
and
fixed
income
funds
with
positive
environmental,
social
and
governance
characteristics
intended
to
represent
a
growth
risk
profile,
as
represented
by
the
BlackRock
ESG
Aware
Growth
Allocation
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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
June
12,
2020.
The
first
day
of
secondary
market
trading
was
June
18,
2020.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5.62%
5.86%
5.62%
19.56%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5.63
5.86
5.63
19.55
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5.63
5.92
5.63
19.74
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,051.50
$
0.20
$
1,000.00
$
1,024.60
$
0.20
0.04%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
The
fees
and
expenses
of
the
underlying
funds
in
which
the
Fund
invests
are
not
included
in
the
Fund's
annualized
expense
ratio.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
To
Shareholders
10
iShares
®
ESG
Aware
Growth
Allocation
ETF
Portfolio
Management
Commentary
Investor
interest
in
sustainable
investment
strategies
was
mixed
during
the
reporting
period.
In
Europe,
sustainable
investments
continued
to
attract
net
inflows,
although
the
rate
of
net
purchases
slowed
in
the
second
quarter
of
2023.
In
the
U.S.,
however,
there
were
net
outflows
during
the
period
amid
persistent
inflation,
rising
interest
rates,
and
recessionary
fears.
The
Index’s
mix
of
stock
and
bond
funds
with
positive
ESG
characteristics
designed
to
represent
a
growth
target
risk
allocation
strategy
advanced
for
the
reporting
period.
The
equity
allocation,
which
represented
approximately
60%
of
the
Index
on
average
for
the
reporting
period,
contributed
the
most
to
the
Index’s
return.
U.S.
stocks
were
the
leading
source
of
strength,
as
the
information
technology
sector
was
buoyed
by
investor
optimism
surrounding
new
developments
in
artificial
intelligence
(“AI”)
applications.
The
semiconductors
and
semiconductor
equipment
industry
gained
notably,
driven
by
strong
interest
in
the
computationally
intensive
area
of
generative
AI,
benefiting
companies
that
manufacture
the
specialty
microchips
that
can
be
used
for
these
applications.
The
U.S.
software
and
services
industry
also
advanced,
as
an
investment
by
a
large
systems
software
company
in
a
leading
AI
company
enabled
the
incorporation
of
AI
into
a
search
engine,
driving
optimism
about
other
future
applications.
International
stocks
from
developed
economies
also
contributed
to
the
Index’s
return,
led
by
Japanese
and
French
stocks.
The
Japanese
industrials
sector
advanced
amidst
a
broader
economic
rebound.
French
stocks
climbed
due
to
strength
in
the
consumer
discretionary
sector.
On
the
downside,
the
Index’s
bond
allocation,
which
represented
approximately
40%
of
the
Index
on
average
for
the
reporting
period,
detracted
from
the
Index’s
performance.
U.S.
bonds
declined
the
most,
as
the
Fed’s
seven
interest
rate
increases
during
the
reporting
period
worked
against
bond
prices,
making
existing
bonds
relatively
less
attractive.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Class
Percent
of
Total
Investments
(a)
Domestic
Equity
.................................
41.2
%
Domestic
Fixed
Income
............................
37.7
International
Equity
...............................
21.1
FIVE
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
..............
37.7
%
iShares
ESG
Aware
MSCI
USA
ETF
.....................
37.2
iShares
ESG
Aware
MSCI
EAFE
ETF
....................
14.6
iShares
ESG
Aware
MSCI
EM
ETF
......................
6.5
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
.............
4.0
(a)
Excludes
money
market
funds.
Fund
Summary
as
of
July
31,
2023
11
Fund
Summary
iShares
®
ESG
Aware
Moderate
Allocation
ETF
Investment
Objective
The
iShares
ESG
Aware
Moderate
Allocation
ETF
(the
“
Fund
”
)
seeks
to
track
the
investment
results
of
an
index
composed
of
a
portfolio
of
underlying
equity
and
fixed
income
funds
with
positive
environmental,
social
and
governance
characteristics
intended
to
represent
a
moderate
risk
profile,
as
represented
by
the
BlackRock
ESG
Aware
Moderate
Allocation
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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
June
12,
2020.
The
first
day
of
secondary
market
trading
was
June
18,
2020.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.48%
2.61%
2.48%
8.43%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.44
2.61
2.44
8.41
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.50
2.66
2.50
8.57
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,030.40
$
0.25
$
1,000.00
$
1,024.55
$
0.25
0.05%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
The
fees
and
expenses
of
the
underlying
funds
in
which
the
Fund
invests
are
not
included
in
the
Fund's
annualized
expense
ratio.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
to
Shareholders
12
iShares
®
ESG
Aware
Moderate
Allocation
ETF
Portfolio
Management
Commentary
Investor
interest
in
the
sustainable
investment
strategies
was
mixed
during
the
reporting
period.
In
Europe,
sustainable
investments
continued
to
attract
net
inflows,
although
the
rate
of
net
purchases
slowed
in
the
second
quarter
of
2023.
In
the
U.S.,
however,
there
were
net
outflows
during
the
period
amid
persistent
inflation,
rising
interest
rates,
and
recessionary
fears.
The
Index’s
mix
of
stock
and
bond
funds
with
positive
ESG
characteristics
designed
to
represent
a
moderate
target
risk
allocation
strategy
advanced
for
the
reporting
period.
The
equity
allocation,
which
represented
approximately
40%
of
the
Index
on
average
for
the
reporting
period,
contributed
the
most
to
the
Index’s
return.
U.S.
stocks
were
the
leading
source
of
strength,
as
the
information
technology
sector
was
buoyed
by
investor
optimism
surrounding
new
developments
in
artificial
intelligence
(“AI”)
applications.
The
semiconductors
and
semiconductor
equipment
industry
gained
notably,
driven
by
strong
interest
in
the
computationally
intensive
area
of
generative
AI,
benefiting
companies
that
manufacture
the
specialty
microchips
that
can
be
used
for
these
applications.
The
U.S.
software
and
services
industry
also
advanced,
as
an
investment
by
a
large
systems
software
company
in
a
leading
AI
company
enabled
the
incorporation
of
AI
into
a
search
engine.
International
stocks
from
developed
economies
also
contributed
to
the
Index’s
return,
led
by
Japanese
industrials.
On
the
downside,
the
Index’s
bond
allocation,
which
represented
approximately
60%
of
the
Index
on
average
for
the
reporting
period,
detracted
from
the
Index’s
performance.
U.S.
bonds
declined
the
most,
as
the
Fed’s
seven
interest
rate
increases
during
the
reporting
period
worked
against
bond
prices,
making
existing
bonds
relatively
less
attractive.
U.S.
Treasuries
declined,
as
the
continued
strength
of
the
U.S.
economy
and
the
Fed’s
outlook
led
investors
to
reassess
the
trajectory
of
interest
rates.
Issuance
of
U.S.
Treasuries
was
substantial
amid
high
deficit
spending.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Class
Percent
of
Total
Investments
(a)
Domestic
Fixed
Income
............................
57.7
%
Domestic
Equity
.................................
28.0
International
Equity
...............................
14.3
FIVE
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
..............
57.7
%
iShares
ESG
Aware
MSCI
USA
ETF
.....................
25.3
iShares
ESG
Aware
MSCI
EAFE
ETF
....................
9.9
iShares
ESG
Aware
MSCI
EM
ETF
......................
4.4
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
.............
2.7
(a)
Excludes
money
market
funds.
About
Fund
Performance
13
About
Fund
Performance
/
Disclosure
of
Expenses
Past
performance
is
not
an
indication
of
future
results.
Financial
markets
have
experienced
extreme
volatility
and
trading
in
many
instruments
has
been
disrupted.
These
circumstances
may
continue
for
an
extended
period
of
time
and
may
continue
to
affect
adversely
the
value
and
liquidity
of
each
Fund’s
investments.
As
a
result,
current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Performance
data
current
to
the
most
recent
month-end
is
available
at
iShares.com
.
Performance
results
assume
reinvestment
of
all
dividends
and
capital
gain
distributions
and
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
The
investment
return
and
principal
value
of
shares
will
vary
with
changes
in
market
conditions.
Shares
may
be
worth
more
or
less
than
their
original
cost
when
they
are
redeemed
or
sold
in
the
market.
Performance
for
certain
funds
may
reflect
a
waiver
of
a
portion
of
investment
advisory
fees.
Without
such
a
waiver,
performance
would
have
been
lower.
Net
asset
value
or
“NAV”
is
the
value
of
one
share
of
a
fund
as
calculated
in
accordance
with
the
standard
formula
for
valuing
mutual
fund
shares.
Beginning
August
10,
2020,
the
price
used
to
calculate
market
return
(“Market
Price”)
is
the
closing
price.
Prior
to
August
10,
2020,
Market Price
was
determined
using
the
midpoint
between
the
highest
bid
and
the
lowest
ask
on
the
primary
stock
exchange
on
which
shares
of
a
fund
are
listed
for
trading,
as
of
the
time
that
such
fund’s
NAV
is
calculated. Since
shares
of
a
fund
may
not
trade
in
the
secondary
market
until
after
the
fund’s
inception,
for
the
period
from
inception
to
the
first
day
of
secondary
market
trading
in
shares
of
the
fund,
the
NAV
of
the
fund
is
used
as
a
proxy
for
the
Market
Price
to
calculate
market
returns.
Market
and
NAV
returns
assume
that
dividends
and
capital
gain
distributions
have
been
reinvested
at
Market
Price
and
NAV,
respectively.
An
index
is
a
statistical
composite
that
tracks
a
specified
financial
market
or
sector.
Unlike
a
fund,
an
index
does
not
actually
hold
a
portfolio
of
securities
and
therefore
does
not
incur
the
expenses
incurred
by
a
fund.
These
expenses
negatively
impact
fund
performance.
Also,
market
returns
do
not
include
brokerage
commissions
that
may
be
payable
on
secondary
market
transactions.
If
brokerage
commissions
were
included,
market
returns
would
be
lower.
Disclosure
of Expenses
Shareholders
of each
Fund
may
incur
the
following
charges: (1)
transactional
expenses,
including
brokerage
commissions
on
purchases
and
sales
of
fund
shares
and
(2)
ongoing
expenses,
including
management
fees
and
other
fund
expenses.
The
expense
examples
shown (which are
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period) are
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in each
Fund and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
funds.
The
expense
examples
provide information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to estimate
the
expenses
a
shareholder paid during
the period
covered
by
this
report,
shareholders
can divide their
account
value
by
$1,000 and
then
multiply
the
result
by
the
number
under
the
heading
entitled
“Expenses
Paid
During
the
Period.”
The
expense
examples also
provide
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on a
fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the ongoing expenses
of
investing
in the
Funds
and
other
funds, compare
the
5%
hypothetical
examples
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
expenses
shown
in
the
expense
examples are
intended
to highlight shareholders’
ongoing
costs
only
and
do
not
reflect
any
transactional
expenses,
such
as
brokerage
commissions
and
other
fees
paid
on
purchases
and
sales
of
fund
shares.
Therefore,
the
hypothetical
examples are
useful
in
comparing
ongoing expenses
only
and
will
not
help
shareholders determine
the
relative
total expenses
of
owning
different
funds. If
these
transactional expenses
were
included, shareholder
expenses would
have
been
higher.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
ESG
Aware
Aggressive
Allocation
ETF
14
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Value
Investment
Companies
Domestic
Equity
—
53.8%
(a)
iShares
ESG
Aware
MSCI
USA
ETF
.......
121,225
$
12,226,753
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
34,934
1,305,484
13,532,237
Domestic
Fixed
Income
—
18.5%
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
(a)
..........................
98,815
4,647,269
International
Equity
—
27.6%
(a)
iShares
ESG
Aware
MSCI
EAFE
ETF
......
64,137
4,794,882
iShares
ESG
Aware
MSCI
EM
ETF
........
63,201
2,124,818
6,919,700
Total
Long-Term
Investments
—
99.9%
(Cost:
$25,028,881)
...............................
25,099,206
Security
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
0.1%
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
(a)(b)
..................
37,051
$
37,051
Total
Short-Term
Securities
—
0.1%
(Cost:
$37,051)
..................................
37,051
Total
Investments
—
100.0%
(Cost:
$25,065,932)
...............................
25,136,257
Other
Assets
Less
Liabilities
—
0.0
%
....................
387
Net
Assets
—
100.0%
...............................
$
25,136,644
(a)
Affiliate
of
the
Fund.
(b)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
(a)
..............
$
—
$
—
$
(167)
(b)
$
167
$
—
$
—
—
$
5,512
(c)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
20,000
17,051
(b)
—
—
—
37,051
37,051
1,416
—
iShares
ESG
Aware
MSCI
EAFE
ETF
..................
3,785,623
694,574
(200,985)
(25,017)
540,687
4,794,882
64,137
99,972
—
iShares
ESG
Aware
MSCI
EM
ETF
..................
1,687,296
367,431
(36,042)
(16,315)
122,448
2,124,818
63,201
42,505
—
iShares
ESG
Aware
MSCI
USA
ETF
..................
9,687,455
1,747,702
(271,376)
(37,490)
1,100,462
12,226,753
121,225
166,661
—
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
..........
1,139,735
184,374
(100,819)
(19,880)
102,074
1,305,484
34,934
17,222
—
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
......
4,312,148
881,079
(258,592)
(47,587)
(239,779)
4,647,269
98,815
114,126
—
$
(146,122)
$
1,625,892
$
25,136,257
$
447,414
$
—
—
—
(a)
As
of
period
end,
the
entity
is
no
longer
held.
(b)
Represents
net
amount
purchased
(sold).
(c)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
ESG
Aware
Aggressive
Allocation
ETF
Schedule
of
Investments
15
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Investment
Companies
....................................
$
25,099,206
$
—
$
—
$
25,099,206
Short-Term
Securities
Money
Market
Funds
......................................
37,051
—
—
37,051
$
25,136,257
$
—
$
—
$
25,136,257
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
ESG
Aware
Conservative
Allocation
ETF
16
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Value
Investment
Companies
Domestic
Equity
—
21.1%
(a)
iShares
ESG
Aware
MSCI
USA
ETF
.......
13,902
$
1,402,155
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
4,006
149,704
1,551,859
Domestic
Fixed
Income
—
67.8%
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
(a)
..........................
105,765
4,974,128
International
Equity
—
10.8%
(a)
iShares
ESG
Aware
MSCI
EAFE
ETF
......
7,355
549,860
iShares
ESG
Aware
MSCI
EM
ETF
........
7,248
243,678
793,538
Total
Long-Term
Investments
—
99.7%
(Cost:
$8,399,107)
................................
7,319,525
Security
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
0.3%
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
(a)(b)
..................
20,602
$
20,602
Total
Short-Term
Securities
—
0.3%
(Cost:
$20,602)
..................................
20,602
Total
Investments
—
100.0%
(Cost:
$8,419,709)
................................
7,340,127
Other
Assets
Less
Liabilities
—
0.0
%
....................
390
Net
Assets
—
100.0%
...............................
$
7,340,517
(a)
Affiliate
of
the
Fund.
(b)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
(a)
..............
$
—
$
—
$
(563)
(b)
$
563
$
—
$
—
—
$
1,628
(c)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
—
20,602
(b)
—
—
—
20,602
20,602
629
—
iShares
ESG
Aware
MSCI
EAFE
ETF
..................
581,920
293,149
(393,296)
(15,614)
83,701
549,860
7,355
12,458
—
iShares
ESG
Aware
MSCI
EM
ETF
..................
259,520
128,757
(155,611)
(11,031)
22,043
243,678
7,248
5,579
—
iShares
ESG
Aware
MSCI
USA
ETF
..................
1,488,596
690,740
(906,007)
(23,440)
152,266
1,402,155
13,902
22,387
—
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
..........
175,322
68,293
(104,451)
(6,022)
16,562
149,704
4,006
2,339
—
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
......
6,183,545
2,699,308
(3,492,921)
(203,943)
(211,861)
4,974,128
105,765
142,990
—
$
(259,487)
$
62,711
$
7,340,127
$
188,010
$
—
—
—
(a)
As
of
period
end,
the
entity
is
no
longer
held.
(b)
Represents
net
amount
purchased
(sold).
(c)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
ESG
Aware
Conservative
Allocation
ETF
Schedule
of
Investments
17
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Investment
Companies
....................................
$
7,319,525
$
—
$
—
$
7,319,525
Short-Term
Securities
Money
Market
Funds
......................................
20,602
—
—
20,602
$
7,340,127
$
—
$
—
$
7,340,127
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
ESG
Aware
Growth
Allocation
ETF
18
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Value
Investment
Companies
Domestic
Equity
—
41.1%
(a)
iShares
ESG
Aware
MSCI
USA
ETF
.......
63,016
$
6,355,794
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
18,160
678,639
7,034,433
Domestic
Fixed
Income
—
37.6%
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
(a)
..........................
136,977
6,442,028
International
Equity
—
21.1%
(a)
iShares
ESG
Aware
MSCI
EAFE
ETF
......
33,340
2,492,499
iShares
ESG
Aware
MSCI
EM
ETF
........
32,853
1,104,518
3,597,017
Total
Long-Term
Investments
—
99.8%
(Cost:
$16,964,980)
...............................
17,073,478
Security
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
0.2%
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
(a)(b)
..................
33,818
$
33,818
Total
Short-Term
Securities
—
0.2%
(Cost:
$33,818)
..................................
33,818
Total
Investments
—
100.0%
(Cost:
$16,998,798)
...............................
17,107,296
Other
Assets
Less
Liabilities
—
0.0
%
....................
187
Net
Assets
—
100.0%
...............................
$
17,107,483
(a)
Affiliate
of
the
Fund.
(b)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
(a)
..............
$
—
$
—
$
(144)
(b)
$
144
$
—
$
—
—
$
4,399
(c)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
20,000
13,818
(b)
—
—
—
33,818
33,818
1,280
—
iShares
ESG
Aware
MSCI
EAFE
ETF
..................
1,877,583
1,200,591
(882,800)
29,931
267,194
2,492,499
33,340
59,312
—
iShares
ESG
Aware
MSCI
EM
ETF
..................
837,344
552,572
(349,581)
(2,555)
66,738
1,104,518
32,853
24,133
—
iShares
ESG
Aware
MSCI
USA
ETF
..................
4,802,786
2,983,165
(2,070,191)
229,665
410,369
6,355,794
63,016
96,065
—
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
..........
565,918
333,111
(270,968)
24,514
26,064
678,639
18,160
9,959
—
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
......
5,700,450
3,560,839
(2,428,484)
(72,601)
(318,176)
6,442,028
136,977
171,661
—
$
209,098
$
452,189
$
17,107,296
$
366,809
$
—
—
—
(a)
As
of
period
end,
the
entity
is
no
longer
held.
(b)
Represents
net
amount
purchased
(sold).
(c)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
ESG
Aware
Growth
Allocation
ETF
Schedule
of
Investments
19
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Investment
Companies
....................................
$
17,073,478
$
—
$
—
$
17,073,478
Short-Term
Securities
Money
Market
Funds
......................................
33,818
—
—
33,818
$
17,107,296
$
—
$
—
$
17,107,296
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
ESG
Aware
Moderate
Allocation
ETF
20
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Value
Investment
Companies
Domestic
Equity
—
27.9%
(a)
iShares
ESG
Aware
MSCI
USA
ETF
.......
12,926
$
1,303,716
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
3,725
139,203
1,442,919
Domestic
Fixed
Income
—
57.6%
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
(a)
..........................
63,216
2,973,048
International
Equity
—
14.3%
(a)
iShares
ESG
Aware
MSCI
EAFE
ETF
......
6,839
511,284
iShares
ESG
Aware
MSCI
EM
ETF
........
6,739
226,565
737,849
Total
Long-Term
Investments
—
99.8%
(Cost:
$5,770,320)
................................
5,153,816
Security
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
0.2%
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
(a)(b)
..................
12,797
$
12,797
Total
Short-Term
Securities
—
0.2%
(Cost:
$12,797)
..................................
12,797
Total
Investments
—
100.0%
(Cost:
$5,783,117)
................................
5,166,613
Liabilities
in
Excess
of
Other
Assets
—
(0.0)
%
.............
(59)
Net
Assets
—
100.0%
...............................
$
5,166,554
(a)
Affiliate
of
the
Fund.
(b)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
(a)
..............
$
—
$
—
$
(85)
(b)
$
85
$
—
$
—
—
$
1,864
(c)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
10,000
—
2,797
(b)
—
—
12,797
12,797
442
—
iShares
ESG
Aware
MSCI
EAFE
ETF
..................
462,609
1,018,854
(1,031,506)
(1,815)
63,142
511,284
6,839
12,175
—
iShares
ESG
Aware
MSCI
EM
ETF
..................
206,304
432,838
(420,823)
(5,623)
13,869
226,565
6,739
6,090
—
iShares
ESG
Aware
MSCI
USA
ETF
..................
1,183,396
2,403,720
(2,368,631)
(39,273)
124,504
1,303,716
12,926
21,126
—
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
..........
139,444
272,551
(273,522)
(10,852)
11,582
139,203
3,725
2,214
—
iShares
ESG
Aware
U.S.
Aggregate
Bond
ETF
......
3,160,152
6,021,352
(6,043,728)
16,271
(180,999)
2,973,048
63,216
84,618
—
$
(41,207)
$
32,098
$
5,166,613
$
128,529
$
—
—
—
(a)
As
of
period
end,
the
entity
is
no
longer
held.
(b)
Represents
net
amount
purchased
(sold).
(c)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
ESG
Aware
Moderate
Allocation
ETF
Schedule
of
Investments
21
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Investment
Companies
....................................
$
5,153,816
$
—
$
—
$
5,153,816
Short-Term
Securities
Money
Market
Funds
......................................
12,797
—
—
12,797
$
5,166,613
$
—
$
—
$
5,166,613
Statements
of
Assets
and
Liabilities
July
31,
2023
2023
iShares
Annual
Report
to
Shareholders
22
See
notes
to
financial
statements.
iShares
ESG
Aware
Aggressive
Allocation
ETF
iShares
ESG
Aware
Conservative
Allocation
ETF
iShares
ESG
Aware
Growth
Allocation
ETF
iShares
ESG
Aware
Moderate
Allocation
ETF
ASSETS
Investments,
at
value
—
affiliated
(a)
............................................
$
25,136,257
$
7,340,127
$
17,107,296
$
5,166,613
Cash
...............................................................
194
3
351
—
Receivables:
–
–
–
–
Securities
lending
income
—
affiliated
........................................
179
84
—
—
Dividends
—
affiliated
...................................................
229
89
204
68
Other
assets
...........................................................
167
564
143
86
Total
assets
...........................................................
25,137,026
7,340,867
17,107,994
5,166,767
LIABILITIES
Payables:
–
–
–
–
Investment
advisory
fees
.................................................
382
350
511
213
Total
liabilities
..........................................................
382
350
511
213
Commitments
and
contingent
liabilities
—
—
—
—
NET
ASSETS
..........................................................
$
25,136,644
$
7,340,517
$
17,107,483
$
5,166,554
NET
ASSETS
CONSIST
OF:
Paid-in
capital
..........................................................
$
25,246,839
$
8,516,634
$
17,111,325
$
5,848,365
Accumulated
loss
.......................................................
(110,195)
(1,176,117)
(3,842)
(681,811)
NET
ASSETS
..........................................................
$
25,136,644
$
7,340,517
$
17,107,483
$
5,166,554
NET
ASSET
VALUE
Shares
outstanding
......................................................
800,000
300,000
600,000
200,000
Net
asset
value
.........................................................
$
31.42
$
24.47
$
28.51
$
25.83
Shares
authorized
.......................................................
Unlimited
Unlimited
Unlimited
Unlimited
Par
value
.............................................................
None
None
None
None
(a)
Investments,
at
cost
—
affiliated
............................................
$
25,065,932
$
8,419,709
$
16,998,798
$
5,783,117
Statements
of
Operations
Year
Ended
July
31,
2023
23
Financial
Statements
See
notes
to
financial
statements.
iShares
ESG
Aware
Aggressive
Allocation
ETF
iShares
ESG
Aware
Conservative
Allocation
ETF
iShares
ESG
Aware
Growth
Allocation
ETF
iShares
ESG
Aware
Moderate
Allocation
ETF
INVESTMENT
INCOME
–
–
–
–
Dividends
—
affiliated
...................................................
$
441,902
$
186,382
$
362,410
$
126,665
Securities
lending
income
—
affiliated
—
net
...................................
5,512
1,628
4,399
1,864
Total
investment
income
...................................................
447,414
188,010
366,809
128,529
EXPENSES
Investment
advisory
....................................................
37,911
13,666
28,244
9,567
Total
expenses
.........................................................
37,911
13,666
28,244
9,567
Less:
–
–
–
–
Investment
advisory
fees
waived
...........................................
(33,436)
(9,259)
(22,614)
(6,877)
Total
expenses
after
fees
waived
.............................................
4,475
4,407
5,630
2,690
Net
investment
income
....................................................
442,939
183,603
361,179
125,839
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
1,479,770
$
(196,777)
$
661,287
$
(9,109)
Net
realized
gain
(loss)
from:
Investments
—
affiliated
...............................................
$
(146,122)
$
(47,139)
$
(106,875)
$
(36,319)
In-kind
redemptions
—
affiliated
(a)
.........................................
—
(212,348)
315,973
(4,888)
(146,122)
(259,487)
209,098
(41,207)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
affiliated
...............................................
1,625,892
62,711
452,189
32,098
Net
realized
and
unrealized
gain
(loss)
.........................................
1,479,770
(196,776)
661,287
(9,109)
NET
INCREASE
(DECREASE)
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..........
$
1,922,709
$
(13,173)
$
1,022,466
$
116,730
(a)
See
Note
2
of
the
Notes
to
Financial
Statements.
Statements
of
Changes
in
Net
Assets
2023
iShares
Annual
Report
to
Shareholders
24
See
notes
to
financial
statements.
iShares
ESG
Aware
Aggressive
Allocation
ETF
iShares
ESG
Aware
Conservative
Allocation
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/23
Year
Ended
07/31/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
442,939
$
374,326
$
183,603
$
442,525
Net
realized
gain
(loss)
....................................................
(146,122)
506,060
(259,487)
(3,662,192)
Net
change
in
unrealized
appreciation
(depreciation)
................................
1,625,892
(3,163,772)
62,711
(1,382,720)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...........................
1,922,709
(2,283,386)
(13,173)
(4,602,387)
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(442,363)
(374,625)
(183,635)
(442,927)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
.................
3,017,083
3,156,575
(1,159,461)
8,147,760
NET
ASSETS
Total
increase
(decrease)
in
net
assets
...........................................
4,497,429
498,564
(1,356,269)
3,102,446
Beginning
of
year
..........................................................
20,639,215
20,140,651
8,696,786
5,594,340
End
of
year
..............................................................
$
25,136,644
$
20,639,215
$
7,340,517
$
8,696,786
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Statements
of
Changes
in
Net
Assets
(continued)
25
Financial
Statements
See
notes
to
financial
statements.
iShares
ESG
Aware
Growth
Allocation
ETF
iShares
ESG
Aware
Moderate
Allocation
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/23
Year
Ended
07/31/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
361,179
$
160,841
$
125,839
$
91,784
Net
realized
gain
(loss)
....................................................
209,098
(4,367)
(41,207)
231,351
Net
change
in
unrealized
appreciation
(depreciation)
................................
452,189
(1,174,268)
32,098
(1,005,012)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...........................
1,022,466
(1,017,794)
116,730
(681,877)
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(361,288)
(161,159)
(125,927)
(92,019)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.........................
2,633,944
7,180,313
13,293
126,056
NET
ASSETS
Total
increase
(decrease)
in
net
assets
...........................................
3,295,122
6,001,360
4,096
(647,840)
Beginning
of
year
..........................................................
13,812,361
7,811,001
5,162,458
5,810,298
End
of
year
..............................................................
$
17,107,483
$
13,812,361
$
5,166,554
$
5,162,458
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
2023
iShares
Annual
Report
to
Shareholders
26
iShares
ESG
Aware
Aggressive
Allocation
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Period
from
06/12/20
(a)
to
07/31/20
Net
asset
value,
beginning
of
period
.............................................
$
29.48
$
33.57
$
26.74
$
25.32
Net
investment
income
(b)
.....................................................
0.61
0.58
0.49
0.10
Net
realized
and
unrealized
gain
(loss)
(c)
...........................................
1.94
(4.10
)
6.78
1.44
Net
increase
(decrease)
from
investment
operations
....................................
2.55
(3.52
)
7.27
1.54
Distributions
from
net
investment
income
(d)
...........................................
(0.61
)
(0.57
)
(0.44
)
(0.12
)
Net
asset
value,
end
of
period
..................................................
$
31.42
$
29.48
$
33.57
$
26.74
Total
Return
(e)
—
—
—
—
Based
on
net
asset
value
......................................................
8.82
%
(10.57
)%
27.32
%
6.10
%
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.............................................................
0.18
%
0.18
%
0.18
%
0.18
%
(h)
Total
expenses
after
fees
waived
.................................................
0.02
%
0.02
%
0.02
%
0.03
%
(h)
Net
investment
income
........................................................
2.10
%
1.81
%
1.53
%
2.74
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
..................................................
$
25,137
$
20,639
$
20,141
$
4,011
Portfolio
turnover
rate
(i)
........................................................
4
%
2
%
5
%
0
%
(j)
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Not
annualized.
(g)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(h)
Annualized.
(i)
Portfolio
turnover
rate
excludes
in-kind
transactions.
(j)
Rounds
to
less
than
0.01%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
27
Financial
Highlights
iShares
ESG
Aware
Conservative
Allocation
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Period
from
06/12/20
(a)
to
07/31/20
Net
asset
value,
beginning
of
period
.............................................
$
24.85
$
27.97
$
25.95
$
25.14
Net
investment
income
(b)
.....................................................
0.58
0.38
0.33
0.06
Net
realized
and
unrealized
gain
(loss)
(c)
...........................................
(0.37
)
(3.06
)
2.05
0.82
Net
increase
(decrease)
from
investment
operations
....................................
0.21
(2.68
)
2.38
0.88
Distributions
(d)
–
–
–
–
From
net
investment
income
..................................................
(0.59
)
(0.44
)
(0.36
)
(0.07
)
Return
of
capital
...........................................................
—
—
—
(0.00
)
(e)
Total
distributions
...........................................................
(0.59
)
(0.44
)
(0.36
)
(0.07
)
Net
asset
value,
end
of
period
..................................................
$
24.47
$
24.85
$
27.97
$
25.95
Total
Return
(f)
—
—
—
—
Based
on
net
asset
value
......................................................
0.93
%
(9.65
)%
9.23
%
3.50
%
(g)
Ratios
to
Average
Net
Assets
(h)
Total
expenses
.............................................................
0.18
%
0.18
%
0.18
%
0.18
%
(i)
Total
expenses
after
fees
waived
.................................................
0.06
%
0.06
%
0.06
%
0.06
%
(i)
Net
investment
income
........................................................
2.42
%
1.41
%
1.21
%
1.63
%
(i)
Supplemental
Data
Net
assets,
end
of
period
(000)
..................................................
$
7,341
$
8,697
$
5,594
$
3,893
Portfolio
turnover
rate
(j)
........................................................
4
%
3
%
4
%
0
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Rounds
to
less
than
$0.01.
(f)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(g)
Not
annualized.
(h)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(i)
Annualized.
(j)
Portfolio
turnover
rate
excludes
in-kind
transactions.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
iShares
Annual
Report
to
Shareholders
28
iShares
ESG
Aware
Growth
Allocation
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Period
from
06/12/20
(a)
to
07/31/20
Net
asset
value,
beginning
of
period
.............................................
$
27.62
$
31.24
$
26.43
$
25.25
Net
investment
income
(b)
.....................................................
0.62
0.50
0.40
0.08
Net
realized
and
unrealized
gain
(loss)
(c)
...........................................
0.89
(3.64
)
4.81
1.20
Net
increase
(decrease)
from
investment
operations
....................................
1.51
(3.14
)
5.21
1.28
Distributions
from
net
investment
income
(d)
...........................................
(0.62
)
(0.48
)
(0.40
)
(0.10
)
Net
asset
value,
end
of
period
..................................................
$
28.51
$
27.62
$
31.24
$
26.43
Total
Return
(e)
—
—
—
—
Based
on
net
asset
value
......................................................
5.62
%
(10.11
)%
19.83
%
5.08
%
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.............................................................
0.18
%
0.18
%
0.18
%
0.18
%
(h)
Total
expenses
after
fees
waived
.................................................
0.04
%
0.04
%
0.03
%
0.04
%
(h)
Net
investment
income
........................................................
2.30
%
1.68
%
1.37
%
2.29
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
..................................................
$
17,107
$
13,812
$
7,811
$
3,965
Portfolio
turnover
rate
(i)
........................................................
5
%
4
%
15
%
0
%
(j)
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Not
annualized.
(g)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(h)
Annualized.
(i)
Portfolio
turnover
rate
excludes
in-kind
transactions.
(j)
Rounds
to
less
than
0.01%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
29
Financial
Highlights
iShares
ESG
Aware
Moderate
Allocation
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Period
from
06/12/20
(a)
to
07/31/20
Net
asset
value,
beginning
of
period
.............................................
$
25.81
$
29.05
$
26.11
$
25.18
Net
investment
income
(b)
.....................................................
0.59
0.42
0.35
0.06
Net
realized
and
unrealized
gain
(loss)
(c)
...........................................
0.02
(3.25
)
2.96
0.95
Net
increase
(decrease)
from
investment
operations
....................................
0.61
(2.83
)
3.31
1.01
Distributions
(d)
–
–
–
–
From
net
investment
income
..................................................
(0.59
)
(0.41
)
(0.37
)
(0.08
)
Return
of
capital
...........................................................
—
—
—
(0.00
)
(e)
Total
distributions
...........................................................
(0.59
)
(0.41
)
(0.37
)
(0.08
)
Net
asset
value,
end
of
period
..................................................
$
25.83
$
25.81
$
29.05
$
26.11
Total
Return
(f)
—
—
—
—
Based
on
net
asset
value
......................................................
2.48
%
(9.79
)%
12.76
%
4.02
%
(g)
Ratios
to
Average
Net
Assets
(h)
Total
expenses
.............................................................
0.18
%
0.18
%
0.18
%
0.18
%
(i)
Total
expenses
after
fees
waived
.................................................
0.05
%
0.05
%
0.05
%
0.05
%
(i)
Net
investment
income
........................................................
2.37
%
1.51
%
1.25
%
1.82
%
(i)
Supplemental
Data
Net
assets,
end
of
period
(000)
..................................................
$
5,167
$
5,162
$
5,810
$
3,917
Portfolio
turnover
rate
(j)
........................................................
5
%
15
%
4
%
0
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Rounds
to
less
than
$0.01.
(f)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(g)
Not
annualized.
(h)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(i)
Annualized.
(j)
Portfolio
turnover
rate
excludes
in-kind
transactions.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
2023
iShares
Annual
Report
to
Shareholders
30
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”):
Each
Fund
is
a
fund
of
funds
and
seeks
to
achieve
its
investment
objective
by
investing
primarily
in
other
iShares
funds
(each,
an
“underlying
fund”
and
collectively,
the
“underlying
funds”).
The
financial
statements,
including
the
accounting
policies,
and
Schedules
of
Investments
for
the
underlying
funds
are
available
on
iShares.com
and
should
be
read
in
conjunction
with
the
Funds’
financial
statements.
2.
Significant
Accounting
Policies
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates. Each
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment
Transactions
and
Income
Recognition
:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method. Dividend
income
and
capital
gain
distributions
from
the
underlying
funds,
if
any,
are
recorded
on
the
ex-dividend
date.
Interest
income
is
recognized
daily
on
an
accrual
basis.
In-kind
Redemptions:
For
financial
reporting
purposes,
in-kind
redemptions
are
treated
as
sales
of
securities
resulting
in
realized
capital
gains
or
losses
to
the
Funds.
Because
such
gains
or
losses
are
not
taxable
to
the
Funds
and
are
not
distributed
to
existing
Fund
shareholders,
the
gains
or
losses
are
reclassified
from
accumulated
net
realized
gain
(loss)
to
paid-in
capital
at
the
end
of
the
Funds’
tax
year.
These
reclassifications
have
no
effect
on
net
assets
or
net
asset
value
(“NAV”)
per
share.
Distributions:
Dividends
and
distributions
paid
by
each
Fund
are
recorded
on
the
ex-dividend
dates.
Distributions
are
determined
on
a
tax
basis
and
may
differ
from
net
investment
income
and
net
realized
capital
gains
for
financial
reporting
purposes.
Dividends
and
distributions
are
paid
in
U.S.
dollars
and
cannot
be
automatically
reinvested
in
additional
shares
of
the
Funds.
Indemnifications:
In
the
normal
course
of
business,
each
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Funds’
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Funds,
which
cannot
be
predicted
with
any
certainty.
3.
Investment
Valuation
and
Fair
Value
Measurements
Investment
Valuation
Policies:
Each
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund’s
listing
exchange
is
open
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Board
of
Trustees
of
the
Trust
(the
“Board”)
of each
Fund
has
approved
the
designation
of
BlackRock
Fund
Advisors
(“BFA”),
the
Funds’
investment
adviser, as
the
valuation
designee
for
each
Fund. Each
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
BFA’s
policies.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
BFA’s policies
and
procedures as
reflecting
fair
value. BFA
has
formed
a
committee
(the
“Valuation
Committee”)
to
develop pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments,
with
assistance
from
other
BlackRock
pricing
committees.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
each
Fund’s
assets
and
liabilities:
Exchange-traded
funds
and
closed-end
funds
traded
on
a
recognized
securities
exchange
are
valued
at
that
day’s 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
NAV.
If
events
(e.g.,
market
volatility,
company
announcement
or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that
application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the Valuation
Committee,
in
accordance
with
BFA’s
policies
and
procedures as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the Valuation
Committee
include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the Valuation
Committee
seeks
to
determine
the
price
that each
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
iShares
ETF
Diversification
Classification
ESG
Aware
Aggressive
Allocation
..........................................................................................
Diversified
ESG
Aware
Conservative
Allocation
........................................................................................
Diversified
ESG
Aware
Growth
Allocation
............................................................................................
Diversified
ESG
Aware
Moderate
Allocation
...........................................................................................
Diversified
Notes
to
Financial
Statements
(continued)
31
Notes
to
Financial
Statements
or
purchase
of
that
asset
or
liability
in
an
arm’s-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the Valuation
Committee
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
Fair
value
pricing
could
result
in
a
difference
between
the
prices
used
to
calculate
a
fund’s
NAV
and
the
prices
used
by
the
fund’s
underlying
index,
which
in
turn
could
result
in
a
difference
between
the
fund’s
performance
and
the
performance
of
the
fund’s
underlying
index.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial
reporting
purposes
as
follows:
Level
1
–
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that each
Fund
has
the
ability
to
access;
Level
2
–
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market-corroborated
inputs);
and
Level
3
–
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available,
(including
the Valuation
Committee’s
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
privately
held
companies
or
funds
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the
financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
Securities
and
Other
Investments
Securities
Lending:
Each
Fund
may
lend
its
securities
to
approved
borrowers,
such
as
brokers,
dealers
and
other
financial
institutions.
The
borrower
pledges
and
maintains
with
the
Fund
collateral
consisting
of
cash,
an
irrevocable
letter
of
credit
issued
by
an
approved
bank,
or
securities
issued
or
guaranteed
by
the
U.S.
government.
The
initial
collateral
received
by
each
Fund
is
required
to
have
a
value
of
at
least
102%
of
the
current
market
value
of
the
loaned
securities
for
securities
traded
on
U.S.
exchanges
and
a
value
of
at
least
105%
for
all
other
securities.
The
collateral
is
maintained
thereafter
at
a
value
equal
to
at
least
100%
of
the
current
value
of
the
securities
on
loan.
The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
each
business
day
of
the
Fund
and
any
additional
required
collateral
is
delivered
to
the
Fund
or
excess
collateral
is
returned
by
the
Fund,
on
the
next
business
day.
During
the
term
of
the
loan,
each
Fund
is
entitled
to
all
distributions
made
on
or
in
respect
of
the
loaned
securities
but
does
not
receive
interest
income
on
securities
received
as
collateral.
Loans
of
securities
are
terminable
at
any
time
and
the
borrower,
after
notice,
is
required
to
return
borrowed
securities
within
the
standard
time
period
for
settlement
of
securities
transactions.
As
of
period
end,
any
securities
on
loan
were
collateralized
by
cash
and/or
U.S.
Government
obligations.
Cash
collateral
invested
in
money
market
funds
managed
by
BFA,
or
its
affiliates
is
disclosed
in
the
Schedule
of
Investments.
Any
non-cash
collateral
received
cannot
be
sold,
re-invested
or
pledged
by
the
Fund,
except
in
the
event
of
borrower
default.
The
securities
on
loan,
if
any,
are
also
disclosed
in
each
Fund’s
Schedule
of
Investments.
The
market
value
of
any
securities
on
loan
and
the
value
of
any
related
cash
collateral
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
Securities
lending
transactions
are
entered
into
by
the
Funds
under
Master
Securities
Lending
Agreements
(each,
an
“MSLA”)
which
provide
the
right,
in
the
event
of
default
(including
bankruptcy
or
insolvency)
for
the
non-defaulting
party
to
liquidate
the
collateral
and
calculate
a
net
exposure
to
the
defaulting
party
or
request
additional
collateral.
In
the
event
that
a
borrower
defaults,
the
Funds,
as
lender,
would
offset
the
market
value
of
the
collateral
received
against
the
market
value
of
the
securities
loaned.
When
the
value
of
the
collateral
is
greater
than
that
of
the
market
value
of
the
securities
loaned,
the
lender
is
left
with
a
net
amount
payable
to
the
defaulting
party.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
an
MSLA
counterparty’s
bankruptcy
or
insolvency.
Under
the
MSLA,
absent
an
event
of
default,
the
borrower
can
resell
or
re-pledge
the
loaned
securities,
and
the
Funds
can
reinvest
cash
collateral
received
in
connection
with
loaned
securities.
Upon
an
event
of
default,
the
parties’
obligations
to
return
the
securities
or
collateral
to
the
other
party
are
extinguished,
and
the
parties
can
resell
or
re-pledge
the
loaned
securities
or
the
collateral
received
in
connection
with
the
loaned
securities
in
order
to
satisfy
the
defaulting
party’s
net
payment
obligation
for
all
transactions
under
the
MSLA.
The
defaulting
party
remains
liable
for
any
deficiency.
The
risks
of
securities
lending
include
the
risk
that
the
borrower
may
not
provide
additional
collateral
when
required
or
may
not
return
the
securities
when
due.
To
mitigate
these
risks,
each
Fund
benefits
from
a
borrower
default
indemnity
provided
by
BlackRock,
Inc.
(“BlackRock”).
BlackRock’s
indemnity
allows
for
full
replacement
of
the
securities
loaned
to
the
extent
the
collateral
received
does
not
cover
the
value
of
the
securities
loaned
in
the
event
of
borrower
default.
Each
Fund
could
incur
a
loss
if
the
value
of
an
investment
purchased
with
cash
collateral
falls
below
the
market
value
of
the
loaned
securities
or
if
the
value
of
an
investment
purchased
with
cash
collateral
falls
below
the
value
of
the
original
cash
collateral
received.
Such
losses
are
borne
entirely
by
each
Fund.
5.
Investment
Advisory
Agreement
and
Other
Transactions
with
Affiliates
Investment
Advisory
Fees:
Pursuant
to
an
Investment
Advisory
Agreement
with
the
Trust
,
BFA
manages
the
investment
of each
Fund’s
assets.
BFA
is
a
California
corporation
indirectly owned
by
BlackRock. Under
the
Investment
Advisory
Agreement,
BFA
is
responsible
for
substantially
all
expenses
of
the
Funds,
except
(
i
)
interest
and
taxes;
(ii)
brokerage
commissions
and
other
expenses
connected
with
the
execution
of
portfolio
transactions;
(iii)
distribution
fees;
(iv)
the
advisory
fee
payable
to
BFA;
and
(v)
litigation
expenses
and
any
extraordinary
expenses
(in
each
case
as
determined
by
a
majority
of
the
independent
trustees
).
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
32
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:
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,
if
any,
is
a
fund’s
total
annual
operating
expenses.
Total
expenses
as
shown
in
the
Statements
of
Operations
does
not
include
acquired
fund
fees
and
expenses.
BFA
has
contractually
agreed
to
waive
a
portion
of
its
investment
advisory
fee
for
each
Fund
through
November
30,
2025,
in
an
amount
equal
to
the
acquired
fund
fees
and
expenses,
if
any,
attributable
to
each
Fund’s
investments
in
other
iShares
funds.
These
amounts are
included
in
investment
advisory
fees
waived
in
the
Statements
of
Operations.
For
the
year ended July
31,
2023,
the
amounts
waived
in
investment
advisory
fees
pursuant
to
this
arrangement
were
as
follows:
Distributor:
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
BFA,
is
the
distributor
for
each
Fund.
Pursuant
to
the
distribution
agreement,
BFA
is
responsible
for
any
fees
or
expenses
for
distribution
services
provided
to
the
Funds.
ETF
Servicing
Fees:
Each
Fund
has
entered
into
an
ETF
Services
Agreement
with
BRIL
to
perform
certain
order
processing,
Authorized
Participant
communications,
and
related
services
in
connection
with
the
issuance
and
redemption
of
Creation
Units
(“ETF
Services”).
BRIL
is
entitled
to
a
transaction
fee
from
Authorized
Participants
on
each
creation
or
redemption
order
for
the
ETF
Services
provided. The Funds
do
not
pay
BRIL
for
ETF
Services.
Securities
Lending:
The
U.S.
Securities
and
Exchange
Commission
(the
“SEC”)
has
issued
an
exemptive
order
which
permits
BlackRock
Institutional
Trust
Company,
N.A.
(“BTC”),
an
affiliate
of
BFA,
to
serve
as
securities
lending
agent
for
the
Funds,
subject
to
applicable
conditions.
As
securities
lending
agent,
BTC
bears
all
operational
costs
directly
related
to
securities
lending,
including
any
custodial
costs.
Each
Fund
is
responsible
for
fees
in
connection
with
the
investment
of
cash
collateral
received
for
securities
on
loan
(the
“collateral
investment
fees”).
The
cash
collateral
is
invested
in
a
money
market
fund,
BlackRock
Cash
Funds:
Institutional
or
BlackRock
Cash
Funds:
Treasury,
managed
by
BFA,
or
its
affiliates.
However,
BTC
has
agreed
to
reduce
the
amount
of
securities
lending
income
it
receives
in
order
to
effectively
limit
the
collateral
investment
fees
each
Fund
bears
to
an
annual
rate
of
0.04%.
The
SL
Agency
Shares
of
such
money
market
fund
will
not
be
subject
to
a
sales
load,
distribution
fee
or
service
fee.
The
money
market
fund
in
which
the
cash
collateral
has
been
invested
may,
under
certain
circumstances,
impose
a
liquidity
fee
of
up
to
2%
of
the
value
redeemed
or
temporarily
restrict
redemptions
for
up
to
10
business
days
during
a
90
day
period,
in
the
event
that
the
money
market
fund’s
weekly
liquid
assets
fall
below
certain
thresholds.
Securities
lending
income
is
equal
to
the
total
of
income
earned
from
the
reinvestment
of
cash
collateral,
net
of
fees
and
other
payments
to
and
from
borrowers
of
securities,
and
less
the
collateral
investment
fees.
Each
Fund
retains
a
portion
of
securities
lending
income
and
remits
the
remaining
portion
to
BTC
as
compensation
for
its
services
as
securities
lending
agent.
Pursuant
to
the
current
securities
lending
agreement,
each
Fund
retains
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
Statements
of
Operations.
For
the year ended
July
31,
2023,
the
Funds
paid
BTC
the
following
amounts
for
securities
lending
agent
services:
Officers
and
Trustees:
Certain
officers
and/or
trustees
of
the
Trust
are
officers
and/or
trustees
of
BlackRock
or
its
affiliates.
Other
Transactions:
Each
Fund
may
invest
its
positive
cash
balances
in
certain
money
market
funds
managed
by
BFA
or
an
affiliate.
The
income
earned
on
these
temporary
cash
investments
is
shown
as
dividends
–
affiliated
in
the
Statements
of
Operations.
iShares
ETF
Investment
Advisory
Fees
ESG
Aware
Aggressive
Allocation
.......................................................................................
0.18
%
ESG
Aware
Conservative
Allocation
.....................................................................................
0.18
ESG
Aware
Growth
Allocation
.........................................................................................
0.18
ESG
Aware
Moderate
Allocation
........................................................................................
0.18
iShares
ETF
Amounts
Waived
ESG
Aware
Aggressive
Allocation
..........................................................................................
$
33,436
ESG
Aware
Conservative
Allocation
........................................................................................
9,259
ESG
Aware
Growth
Allocation
............................................................................................
22,614
ESG
Aware
Moderate
Allocation
...........................................................................................
6,877
iShares
ETF
Amounts
ESG
Aware
Aggressive
Allocation
..............................................................................................
$
1,381
ESG
Aware
Conservative
Allocation
............................................................................................
380
ESG
Aware
Growth
Allocation
................................................................................................
1,070
ESG
Aware
Moderate
Allocation
...............................................................................................
426
Notes
to
Financial
Statements
(continued)
33
Notes
to
Financial
Statements
6.
Purchases
and
Sales
For
the year ended
July
31,
2023,
purchases
and
sales
of
investments,
excluding
short-term securities
and
in-kind
transactions,
were
as
follows:
For
the year ended
July
31,
2023,
in-kind
transactions
were
as
follows:
7.
Income
Tax
Information
Each
Fund
is
treated
as
an
entity
separate
from
the
Trust’s other
funds
for
federal
income
tax
purposes.
It
is
each
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the
Funds
as
of
July
31,
2023,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Funds’
financial
statements.
U.S.
GAAP
requires
that
certain
components
of
net
assets
be
adjusted
to
reflect
permanent
differences
between
financial
and
tax
reporting.
These
reclassifications
have
no
effect
on
net
assets
or
NAV
per
share.
As
of July
31,
2023,
permanent
differences
attributable
to
distributions
paid
in
excess
of
taxable
income
and
realized
gains
(losses)
from
in-kind
redemptions
were
reclassified
to
the
following
accounts:
The
tax
character
of
distributions
paid
was
as
follows:
As
of
July
31,
2023,
the
tax
components
of
accumulated
net
earnings
(losses)
were
as
follows:
iShares
ETF
Purchases
Sales
ESG
Aware
Aggressive
Allocation
...........................................................................
$
861,713
$
867,811
ESG
Aware
Conservative
Allocation
.........................................................................
265,756
280,217
ESG
Aware
Growth
Allocation
.............................................................................
736,536
740,507
ESG
Aware
Moderate
Allocation
............................................................................
239,662
240,408
iShares
ETF
In-kind
Purchases
In-kind
Sales
ESG
Aware
Aggressive
Allocation
...........................................................................
$
3,013,446
$
—
ESG
Aware
Conservative
Allocation
.........................................................................
3,614,490
4,772,068
ESG
Aware
Growth
Allocation
.............................................................................
7,893,743
5,261,518
ESG
Aware
Moderate
Allocation
............................................................................
9,909,652
9,897,800
iShares
ETF
Paid-In
Capital
Accumulated
Earnings
(Loss)
ESG
Aware
Conservative
Allocation
..............................................................
$
(214,090)
$
214,090
ESG
Aware
Growth
Allocation
..................................................................
315,864
(315,864)
ESG
Aware
Moderate
Allocation
.................................................................
(4,976)
4,976
—
iShares
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
ESG
Aware
Aggressive
Allocation
Ordinary
income
...........................................................................................
$
442,363
$
374,625
ESG
Aware
Conservative
Allocation
Ordinary
income
...........................................................................................
$
183,635
$
442,927
ESG
Aware
Growth
Allocation
Ordinary
income
...........................................................................................
$
361,288
$
161,159
ESG
Aware
Moderate
Allocation
Ordinary
income
...........................................................................................
$
125,927
$
92,019
iShares
ETF
Undistributed
Ordinary
Income
Non-Expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Total
ESG
Aware
Aggressive
Allocation
............................................
$
576
$
(120,188)
$
9,417
$
(110,195)
ESG
Aware
Conservative
Allocation
..........................................
—
(87,819)
(1,088,298)
(1,176,117)
ESG
Aware
Growth
Allocation
..............................................
—
(84,368)
80,526
(3,842)
ESG
Aware
Moderate
Allocation
.............................................
—
(58,991)
(622,820)
(681,811)
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
difference
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
was
attributable
primarily
to
the
tax
deferral
of
losses
on
wash
sales.
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
34
As
of
July
31,
2023,
gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
8.
Principal
Risks
In
the
normal
course
of
business,
each
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including,
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
or
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Funds
and
their
investments.
Each
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
BFA
uses
a
“passive”
or
index
approach
to
try
to
achieve
each
Fund’s
investment
objective
following
the
securities
included
in
its
underlying
index
during
upturns
as
well
as
downturns.
BFA
does
not
take
steps
to
reduce
market
exposure
or
to
lessen
the
effects
of
a
declining
market.
Divergence
from
the
underlying
index
and
the
composition
of
the
portfolio
is
monitored
by
BFA.
The
Funds
may
be
exposed
to
additional
risks
when
reinvesting
cash
collateral
in
money
market
funds
that
do
not
seek
to
maintain
a
stable
NAV
per
share
of
$1.00,
which
may
be
subject
to
redemption
gates
or
liquidity
fees
under
certain
circumstances.
Infectious
Illness
Risk:
An
outbreak
of
an
infectious
illness,
such
as
the
COVID-19
pandemic,
may
adversely
impact
the
economies
of
many
nations
and
the
global
economy,
and
may
impact
individual
issuers
and
capital
markets
in
ways
that
cannot
be
foreseen.
An
infectious
illness
outbreak
may
result
in,
among
other
things,
closed
international
borders,
prolonged
quarantines,
supply
chain
disruptions,
market
volatility
or
disruptions
and
other
significant
economic,
social
and
political
impacts.
Counterparty
Credit
Risk:
The
Funds
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Funds
manage
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that BFA
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Funds
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Funds’
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statements
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Funds.
Geographic/Asset
Class
Risk:
A
diversified
portfolio,
where
this
is
appropriate
and
consistent
with
a
fund’s
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
each
Fund’s
portfolio
are
disclosed
in
its
Schedule
of
Investments.
The
Funds
invest
a
significant
portion
of
their
assets
in
securities
of
issuers
located
in
the
United
States.
A
decrease
in
imports
or
exports,
changes
in
trade
regulations,
inflation
and/or
an
economic
recession
in
the
United
States
may
have
a
material
adverse
effect
on
the
U.S.
economy
and
the
securities
listed
on
U.S.
exchanges.
Proposed
and
adopted
policy
and
legislative
changes
in
the
United
States
may
also
have
a
significant
effect
on
U.S.
markets
generally,
as
well
as
on
the
value
of
certain
securities.
Governmental
agencies
project
that
the
United
States
will
continue
to
maintain
elevated
public
debt
levels
for
the
foreseeable
future
which
may
constrain
future
economic
growth.
Circumstances
could
arise
that
could
prevent
the
timely
payment
of
interest
or
principal
on
U.S.
government
debt,
such
as
reaching
the
legislative
“debt
ceiling.”
Such
non-payment
would
result
in
substantial
negative
consequences
for
the
U.S.
economy
and
the
global
financial
system.
If
U.S.
relations
with
certain
countries
deteriorate,
it
could
adversely
affect
issuers
that
rely
on
the
United
States
for
trade.
The
United
States
has
also
experienced
increased
internal
unrest
and
discord.
If
these
trends
were
to
continue,
they
may
have
an
adverse
impact
on
the
U.S.
economy
and
the
issuers
in
which
the Funds
invest.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund’s
NAV,
increase
the
fund’s
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
iShares
ETF
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
ESG
Aware
Aggressive
Allocation
......................................
$
25,126,840
$
1,043,248
$
(1,033,831)
$
9,417
ESG
Aware
Conservative
Allocation
.....................................
8,428,425
–
(1,088,298)
(1,088,298)
ESG
Aware
Growth
Allocation
.........................................
17,026,770
857,824
(777,298)
80,526
ESG
Aware
Moderate
Allocation
.......................................
5,789,433
–
(622,820)
(622,820)
Notes
to
Financial
Statements
(continued)
35
Notes
to
Financial
Statements
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:
The
consideration
for
the
purchase
of
Creation
Units
of
a
fund
in
the Trust
generally
consists
of
the
in-kind
deposit
of
a
designated
portfolio
of
securities
and
a
specified
amount
of
cash.
Certain
funds
in
the Trust
may
be
offered
in
Creation
Units
solely
or
partially
for
cash
in
U.S.
dollars.
Investors
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
BRIL,
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Investors
transacting
in
Creation
Units
for
cash
may
also
pay
an
additional
variable
charge
to
compensate
the
relevant
fund
for
certain
transaction
costs
(i.e.,
stamp
taxes,
taxes
on
currency
or
other
financial
transactions,
and
brokerage
costs)
and
market
impact
expenses
relating
to
investing
in
portfolio
securities.
Such
variable
charges,
if
any,
are
included
in
shares
sold
in
the
table
above.
From
time
to
time,
settlement
of
securities
related
to
in-kind
contributions
or
in-kind
redemptions
may
be
delayed.
In
such
cases,
securities
related
to
in-kind
transactions
are
reflected
as
a
receivable
or
a
payable
in
the
Statements
of
Assets
and
Liabilities.
10.
Subsequent
Events
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Funds
through
the
date
the
financial
statements
were
available
to
be
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Year
Ended
07/31/23
Year
Ended
07/31/22
iShares
ETF
Shares
Amount
Shares
Amount
ESG
Aware
Aggressive
Allocation
Shares
sold
100,000
$
3,017,083
150,000
$
4,873,742
Shares
redeemed
—
—
(50,000)
(1,717,167)
100,000
$
3,017,083
100,000
$
3,156,575
ESG
Aware
Conservative
Allocation
Shares
sold
150,000
$
3,624,706
1,450,000
$
40,573,011
Shares
redeemed
(200,000)
(4,784,167)
(1,300,000)
(32,425,251)
(50,000)
$
(1,159,461)
150,000
$
8,147,760
ESG
Aware
Growth
Allocation
Shares
sold
300,000
$
7,909,238
250,000
$
7,180,313
Shares
redeemed
(200,000)
(5,275,294)
—
—
100,000
$
2,633,944
250,000
$
7,180,313
ESG
Aware
Moderate
Allocation
Shares
sold
400,000
$
9,927,889
100,000
$
2,837,198
Shares
redeemed
(400,000)
(9,914,596)
(100,000)
(2,711,142)
—
$
13,293
—
$
126,056
Report
of
Independent
Registered
Public
Accounting
Firm
2023
iShares
Annual
Report
to
Shareholders
36
To
the
Board
of
Trustees
of
iShares
Trust
and
Shareholders
of
each
of
the four
funds
listed
in
the
table
below
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
each
of
the
funds
listed in
the
table
below
(four
of
the
funds
constituting
iShares
Trust,
hereafter
collectively
referred
to
as
the “Funds”)
as
of
July
31,
2023,
the
related
statements
of
operations
for
the
year
ended
July
31,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2023,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
July
31,
2023,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2023
and
each
of
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
July
31,
2023
by
correspondence
with
the
custodian
and
transfer
agent.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
/s/PricewaterhouseCoopers
LLP
Philadelphia,
Pennsylvania
September
22,
2023
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
2000.
iShares
ESG
Aware
Aggressive
Allocation
ETF
iShares
ESG
Aware
Conservative
Allocation
ETF
iShares
ESG
Aware
Growth
Allocation
ETF
iShares
ESG
Aware
Moderate
Allocation
ETF
Important
Tax
Information
(unaudited)
37
Important
Tax
Information
The
following
amounts,
or
maximum
amounts
allowable
by
law,
are
hereby
designated
as
qualified
dividend
income
for
individuals
for
the
fiscal
year
ended
July
31,
2023:
The
following
amounts,
or
maximum
amounts
allowable
by
law,
are
hereby
designated
as
qualified business
income
for
individuals
for
the
fiscal
year
ended
July
31,
2023:
The
Funds
intend
to
pass
through
to
their
shareholders
the
following
amounts,
or
maximum
amounts
allowable
by
law,
of
foreign
source
income
earned
and
foreign
taxes
paid
for
the
fiscal
year
ended
July
31,
2023:
The
following
percentages,
or
maximum
percentages
allowable
by
law,
of
ordinary
income
distributions
paid
during
the
fiscal
year
ended July
31,
2023
qualified
for
the
dividends-received
deduction
for
corporate
shareholders:
The
Funds
hereby
designates
the
following
amounts,
or
maximum
amounts
allowable
by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
year
ended
July
31,
2023:
The
Funds
hereby
designates
the
following
amounts,
or
maximum
amounts
allowable
by
law,
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations
for
the
fiscal
year
ended July
31,
2023:
iShares
ETF
Qualified
Dividend
Income
ESG
Aware
Aggressive
Allocation
........................................................................................
$
253,505
ESG
Aware
Conservative
Allocation
......................................................................................
78,281
ESG
Aware
Growth
Allocation
..........................................................................................
115,026
ESG
Aware
Moderate
Allocation
.........................................................................................
37,864
iShares
ETF
Qualified
Business
Income
ESG
Aware
Aggressive
Allocation
........................................................................................
$
1,148
ESG
Aware
Conservative
Allocation
......................................................................................
216
ESG
Aware
Growth
Allocation
..........................................................................................
630
ESG
Aware
Moderate
Allocation
.........................................................................................
163
iShares
ETF
Foreign
Source
Income
Earned
Foreign
Taxes
Paid
ESG
Aware
Aggressive
Allocation
.....................................................................
$
153,389
$
13,534
ESG
Aware
Conservative
Allocation
...................................................................
41,669
4,467
ESG
Aware
Growth
Allocation
.......................................................................
68,016
5,373
ESG
Aware
Moderate
Allocation
......................................................................
23,623
2,069
iShares
ETF
Dividends-Received
Deduction
ESG
Aware
Aggressive
Allocation
..........................................................................................
38.73
%
ESG
Aware
Conservative
Allocation
........................................................................................
15.15
ESG
Aware
Growth
Allocation
............................................................................................
29.97
ESG
Aware
Moderate
Allocation
...........................................................................................
19.41
iShares
ETF
Interest
Dividends
ESG
Aware
Aggressive
Allocation
........................................................................................
$
80,759
ESG
Aware
Conservative
Allocation
......................................................................................
206,994
ESG
Aware
Growth
Allocation
..........................................................................................
103,486
ESG
Aware
Moderate
Allocation
.........................................................................................
69,226
iShares
ETF
Interest-Related
Dividends
ESG
Aware
Aggressive
Allocation
........................................................................................
$
72,869
ESG
Aware
Conservative
Allocation
......................................................................................
183,373
ESG
Aware
Growth
Allocation
..........................................................................................
93,285
ESG
Aware
Moderate
Allocation
.........................................................................................
62,014
Board
Review
and
Approval
of
Investment
Advisory
Contract
2023
iShares
Annual
Report
to
Shareholders
38
iShares
ESG
Aware
Aggressive
Allocation
ETF,
iShares
ESG
Aware
Conservative
Allocation
ETF,
iShares
ESG
Aware
Growth
Allocation
ETF
(each
the
“Fund”)
Under
Section
15(c)
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Trust’s
Board
of
Trustees
(the
“Board”),
including
a
majority
of
Board
Members
who
are
not
“interested
persons”
of
the
Trust
(as
that
term
is
defined
in
the
1940
Act)
(the
“Independent
Board
Members”),
is
required
annually
to
consider
the
approval
of
the
Investment
Advisory
Agreement
between
the
Trust
and
BFA
(the
“Advisory
Agreement”)
on
behalf
of
the
Fund.
The
Board’s
consideration
entails
a
year-long
process
whereby
the
Board
and
its
committees
(composed
solely
of
Independent
Board
Members)
assess
BlackRock’s
services
to
the
Fund,
including
investment
management;
fund
accounting;
administrative
and
shareholder
services;
oversight
of
the
Fund’s
service
providers;
risk
management
and
oversight;
legal
and
compliance
services;
and
ability
to
meet
applicable
legal
and
regulatory
requirements.
The
Independent
Board
Members
requested,
and
BFA
provided,
such
information
as
the
Independent
Board
Members,
with
advice
from
independent
counsel,
deemed
reasonably
necessary
to
evaluate
the
Advisory
Agreement.
At
meetings
on
May
2,
2023
and
May
15,
2023,
a
committee
composed
of
all
of
the
Independent
Board
Members
(the
“15(c)
Committee”),
with
independent
counsel,
met
with
management
and
reviewed
and
discussed
information
provided
in
response
to
initial
requests
of
the
15(c)
Committee
and/or
its
independent
counsel,
and
requested
certain
additional
information,
which
management
agreed
to
provide.
At
a
meeting
held
on
June
7-8,
2023,
the
Board,
including
the
Independent
Board
Members,
reviewed
the
additional
information
provided
by
management
in
response
to
these
requests.
After
extensive
discussions
and
deliberations,
the
Board,
including
all
of
the
Independent
Board
Members,
approved
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
based
on
a
review
of
qualitative
and
quantitative
information
provided
by
BFA
and
their
cumulative
experience
as
Board
Members.
The
Board
noted
its
satisfaction
with
the
extent
and
quality
of
information
provided
and
its
frequent
interactions
with
management,
as
well
as
the
detailed
responses
and
other
information
provided
by
BFA.
The
Independent
Board
Members
were
advised
by
their
independent
counsel
throughout
the
process,
including
about
the
legal
standards
applicable
to
their
review.
In
approving
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
the
Board,
including
the
Independent
Board
Members,
considered
various
factors,
including:
(i)
the
expenses
and
performance
of
the
Fund;
(ii)
the
nature,
extent
and
quality
of
the
services
provided
by
BFA;
(iii)
the
costs
of
services
provided
to
the
Fund
and
profits
realized
by
BFA
and
its
affiliates;
(iv)
potential
economies
of
scale
and
the
sharing
of
related
benefits;
(v)
the
fees
and
services
provided
for
other
comparable
funds/accounts
managed
by
BFA
and
its
affiliates;
and
(vi)
other
benefits
to
BFA
and/or
its
affiliates.
The
material
factors,
none
of
which
was
controlling,
and
conclusions
that
formed
the
basis
for
the
Board,
including
the
Independent
Board
Members,
to
approve
the
continuance
of
the
Advisory
Agreement
are
discussed
below.
Expenses
and
Performance
of
the
Fund:
The
Board
reviewed
statistical
information
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
an
independent
provider
of
investment
company
data,
regarding
the
expense
ratio
components,
including
gross
and
net
total
expenses,
fees
and
expenses
of
other
fund(s)
in
which
the
Fund
invests
(if
applicable),
and
waivers/reimbursements
(if
applicable)
of
the
Fund
in
comparison
with
the
same
information
for
other
ETFs,
objectively
selected
by
Broadridge
as
comprising
the
Fund’s
applicable
expense
peer
group
pursuant
to
Broadridge’s
proprietary
ETF
methodology
(the
“Peer
Group”).
The
Board
was
provided
with
a
detailed
description
of
the
proprietary
ETF
methodology
used
by
Broadridge
to
determine
the
Fund’s
Peer
Group.
The
Board
noted
that,
due
to
the
limitations
in
providing
comparable
funds
in
the
Peer
Group,
the
statistical
information
provided
in
Broadridge’s
report
may
or
may
not
provide
meaningful
direct
comparisons
to
the
Fund
in
all
instances.
The
Board
also
noted
that
the
investment
advisory
fee
rate
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
for
the
Fund
were
lower
than
the
median
of
the
investment
advisory
fee
rates
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
of
the
funds
in
its
Peer
Group,
excluding
iShares
funds.
In
addition,
to
the
extent
that
any
of
the
comparison
funds
included
in
the
Peer
Group,
excluding
iShares
funds,
track
the
same
index
as
the
Fund,
Broadridge
also
provided,
and
the
Board
reviewed,
a
comparison
of
the
Fund’s
performance
for
the
one-year,
three-year,
five-year,
ten-year,
and
since
inception
periods,
as
applicable,
and
for
the
quarter
ended
December
31,
2022,
to
that
of
such
relevant
comparison
fund(s)
for
the
same
periods.
The
Board
noted
that
the
Fund
seeks
to
track
its
specified
underlying
index
and
that,
during
the
year,
the
Board
received
periodic
reports
on
the
Fund’s
short-
and
longer-term
performance
in
comparison
with
its
underlying
index.
Such
periodic
comparative
performance
information,
including
additional
detailed
information
as
requested
by
the
Board,
was
also
considered.
The
Board
noted
that
the
Fund
generally
performed
in
line
with
its
underlying
index
over
the
relevant
periods.
Based
on
this
review,
the
other
factors
considered
at
the
meeting,
and
their
general
knowledge
of
ETF
pricing,
the
Board
concluded
that
the
investment
advisory
fee
rate
and
expense
level
and
the
historical
performance
of
the
Fund
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Nature,
Extent
and
Quality
of
Services
Provided:
Based
on
management’s
representations,
including
information
about
ongoing
enhancements
and
initiatives
with
respect
to
the
iShares
business,
including
with
respect
to
capital
markets
support
and
analysis,
technology,
portfolio
management,
product
design
and
quality,
compliance
and
risk
management,
global
public
policy
and
other
services,
the
Board
expected
that
there
would
be
no
diminution
in
the
scope
of
services
required
of
or
provided
by
BFA
under
the
Advisory
Agreement
for
the
coming
year
as
compared
with
the
scope
of
services
provided
by
BFA
during
prior
years.
In
reviewing
the
scope
of
these
services,
the
Board
considered
BFA’s
investment
philosophy
and
experience,
noting
that
BFA
and
its
affiliates
have
committed
significant
resources
over
time,
including
during
the
past
year,
to
support
the
iShares
funds
and
their
shareholders
and
have
made
significant
investments
into
the
iShares
business.
The
Board
also
considered
BFA’s
compliance
program
and
its
compliance
record
with
respect
to
the
Fund,
including
related
programs
implemented
pursuant
to
regulatory
requirements.
In
that
regard,
the
Board
noted
that
BFA
reports
to
the
Board
about
portfolio
management
and
compliance
matters
on
a
periodic
basis
in
connection
with
regularly
scheduled
meetings
of
the
Board,
and
on
other
occasions
as
necessary
and
appropriate,
and
has
provided
information
and
made
relevant
officers
and
other
employees
of
BFA
(and
its
affiliates)
available
as
needed
to
provide
further
assistance
with
these
matters.
The
Board
also
reviewed
the
background
and
experience
of
the
persons
responsible
for
the
day-to-day
management
of
the
Fund,
as
well
as
the
resources
available
to
them
in
managing
the
Fund.
In
addition
to
the
above
considerations,
the
Board
reviewed
and
considered
detailed
presentations
regarding
BFA’s
investment
performance,
investment
and
risk
management
processes
and
strategies
provided
at
the
May
2,
2023
meeting
and
throughout
the
year,
and
matters
related
to
BFA’s
portfolio
compliance
program
and
other
compliance
programs
and
services.
Based
on
review
of
this
information,
and
the
performance
information
discussed
above,
the
Board
concluded
that
the
nature,
extent
and
quality
of
services
provided
to
the
Fund
under
the
Advisory
Agreement
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Costs
of
Services
Provided
to
the
Fund
and
Profits
Realized
by
BFA
and
its
Affiliates:
The
Board
reviewed
information
about
the
estimated
profitability
to
BlackRock
in
managing
the
Fund,
based
on
the
fees
payable
to
BFA
and
its
affiliates
(including
fees
under
the
Advisory
Agreement),
and
other
sources
of
revenue
and
expense
to
BFA
and
its
affiliates
from
the
Fund’s
operations
for
the
last
calendar
year.
The
Board
reviewed
BlackRock’s
methodology
for
calculating
estimated
profitability
of
the
iShares
funds,
noting
that
the
15(c)
Committee
and
the
Board
had
focused
on
the
methodology
and
profitability
presentation.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors,
including,
among
other
things,
fee
waivers
by
BFA,
the
types
of
funds
managed,
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
Board
Review
and
Approval
of
Investment
Advisory
Contract
(continued)
39
Board
Review
and
Approval
of
Investment
Advisory
Contract
calculating
and
comparing
profitability
at
individual
fund
levels
is
challenging.
The
Board
discussed
with
management
the
sources
of
direct
and
ancillary
revenue,
including
the
revenues
to
BTC,
a
BlackRock
affiliate,
from
securities
lending
by
the
Fund.
The
Board
also
discussed
BFA’s
estimated
profit
margin
as
reflected
in
the
Fund’s
profitability
analysis
and
reviewed
information
regarding
potential
economies
of
scale
(as
discussed
below).
Based
on
this
review,
the
Board
concluded
that
the
information
considered
with
respect
to
the
profits
realized
by
BFA
and
its
affiliates
under
the
Advisory
Agreement
and
from
other
relationships
between
the
Fund
and
BFA
and/or
its
affiliates,
if
any,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Economies
of
Scale:
The
Board
reviewed
information
and
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
the
Fund
increase,
noting
that
the
issue
of
potential
economies
of
scale
had
been
focused
on
by
the
15(c)
Committee
and
the
Board
during
their
meetings
and
addressed
by
management.
The
15(c)
Committee
and
the
Board
received
information
regarding
BlackRock’s
historical
estimated
profitability
(as
discussed
above),
including
BFA’s
and
its
affiliates’
estimated
costs
in
providing
services.
The
estimated
cost
information
distinguished,
among
other
things,
between
fixed
and
variable
costs,
and
showed
how
the
level
and
nature
of
fixed
and
variable
costs
may
impact
the
existence
or
size
of
scale
benefits,
with
the
Board
recognizing
that
potential
economies
of
scale
are
difficult
to
measure.
The
15(c)
Committee
and
the
Board
reviewed
information
provided
by
BFA
regarding
the
sharing
of
scale
benefits
with
the
iShares
funds
through
various
means,
including,
as
applicable,
through
relatively
low
fee
rates
established
at
inception,
breakpoints,
waivers,
or
other
fee
reductions,
as
well
as
through
additional
investment
in
the
iShares
business
and
the
provision
of
improved
or
additional
infrastructure
and
services
to
the
iShares
funds
and
their
shareholders.
The
Board
noted
that
the
Advisory
Agreement
for
the
Fund
did
not
provide
for
breakpoints
in
the
Fund’s
investment
advisory
fee
rate
as
the
assets
of
the
Fund
increase.
However,
the
Board
noted
that
it
would
continue
to
assess
the
appropriateness
of
adding
breakpoints
in
the
future.
The
Board
concluded
that
this
review
of
potential
economies
of
scale
and
the
sharing
of
related
benefits,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Fees
and
Services
Provided
for
Other
Comparable
Funds/Accounts
Managed
by
BFA
and
its
Affiliates:
The
Board
received
and
considered
information
regarding
the
investment
advisory/management
fee
rates
for
other
funds/accounts
in
the
U.S.
for
which
BFA
(or
its
affiliates)
provides
investment
advisory/management
services,
including
open-end
funds
registered
under
the
1940
Act
(including
sub-advised
funds),
collective
trust
funds
and
institutional
separate
accounts
(collectively,
the
“Other
Accounts”).
The
Board
acknowledged
BFA’s
representation
that
the
iShares
funds
are
fundamentally
different
investment
vehicles
from
the
Other
Accounts.
The
Board
received
detailed
information
regarding
how
the
Other
Accounts
generally
differ
from
the
Fund,
including
in
terms
of
the
types
of
services
and
generally
more
extensive
services
provided
to
the
Fund,
as
well
as
other
significant
differences.
In
that
regard,
the
Board
considered
that
the
pricing
of
services
to
institutional
clients
is
typically
based
on
a
number
of
factors
beyond
the
nature
and
extent
of
the
specific
services
to
be
provided
and
often
depends
on
the
overall
relationship
between
the
client
and
its
affiliates
and
the
adviser
and
its
affiliates.
In
addition,
the
Board
considered
the
relative
complexity
and
inherent
risks
and
challenges
of
managing
and
providing
other
services
to
the
Fund,
as
a
publicly
traded
investment
vehicle,
as
compared
to
the
Other
Accounts,
particularly
those
that
are
institutional
clients,
in
light
of
differing
regulatory
requirements
and
client-imposed
mandates.
The
Board
noted
that
BFA
and
its
affiliates
do
not
manage
Other
Accounts
with
substantially
the
same
investment
objective
and
strategy
as
the
Fund
and
that
track
the
same
index
as
the
Fund.
The
Board
also
acknowledged
management’s
assertion
that,
for
certain
iShares
funds,
and
for
client
segmentation
purposes,
BlackRock
has
launched
an
iShares
fund
that
may
provide
a
similar
investment
exposure
at
a
lower
investment
advisory
fee
rate.
The
Board
considered
the
“all-inclusive”
nature
of
the
Fund’s
advisory
fee
structure,
and
the
Fund’s
expenses
borne
by
BFA
under
this
arrangement
and
noted
that
the
investment
advisory
fee
rate
under
the
Advisory
Agreement
for
the
Fund
was
generally
higher
than
the
investment
advisory/management
fee
rates
for
certain
of
the
Other
Accounts
(particularly
institutional
clients)
and
concluded
that
the
differences
appeared
to
be
consistent
with
the
factors
discussed.
Other
Benefits
to
BFA
and/or
its
Affiliates:
The
Board
reviewed
other
benefits
or
ancillary
revenue
received
by
BFA
and/or
its
affiliates
in
connection
with
the
services
provided
to
the
Fund
by
BFA,
both
direct
and
indirect,
including,
but
not
limited
to,
payment
of
revenue
to
BTC,
the
Fund’s
securities
lending
agent,
for
loaning
portfolio
securities,
as
applicable
(which
was
included
in
the
profit
margins
reviewed
by
the
Board
pursuant
to
BFA’s
estimated
profitability
methodology),
payment
of
advisory
fees
or
other
fees
to
BFA
(or
its
affiliates)
in
connection
with
any
investments
by
the
Fund
in
other
funds
for
which
BFA
(or
its
affiliates)
provides
investment
advisory
services
or
other
services,
and
BlackRock’s
profile
in
the
investment
community.
The
Board
further
considered
other
direct
benefits
that
might
accrue
to
BFA,
including
the
potential
for
reduction
in
the
Fund’s
expenses
that
are
borne
by
BFA
under
the
“all-inclusive”
management
fee
arrangement,
due
in
part
to
the
size
and
scope
of
BFA’s
investment
operations
servicing
the
Fund
(and
other
funds
in
the
iShares
complex)
as
well
as
in
response
to
a
changing
market
environment.
The
Board
also
reviewed
and
considered
information
provided
by
BFA
concerning
authorized
participant
primary
market
order
processing
services
that
are
provided
by
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
BFA,
and
paid
for
by
authorized
participants
under
the
ETF
Servicing
Platform.
The
Board
also
noted
the
revenue
received
by
BFA
and/or
its
affiliates
pursuant
to
an
agreement
that
permits
a
service
provider
to
use
certain
portions
of
BlackRock’s
technology
platform
to
service
accounts
managed
by
BFA
and/or
its
affiliates,
including
the
iShares
funds.
The
Board
noted
that
BFA
generally
does
not
use
soft
dollars
or
consider
the
value
of
research
or
other
services
that
may
be
provided
to
BFA
(including
its
affiliates)
in
selecting
brokers
for
portfolio
transactions
for
the
Fund.
The
Board
concluded
that
any
such
ancillary
benefits
would
not
be
disadvantageous
to
the
Fund
and
thus
would
not
alter
the
Board’s
conclusion
with
respect
to
the
appropriateness
of
approving
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Conclusion:
Based
on
a
review
of
the
factors
described
above,
as
well
as
such
other
factors
as
deemed
appropriate
by
the
Board,
the
Board,
including
all
of
the
Independent
Board
Members,
determined
that
the
Fund’s
investment
advisory
fee
rate
under
the
Advisory
Agreement
does
not
constitute
a
fee
that
is
so
disproportionately
large
as
to
bear
no
reasonable
relationship
to
the
services
rendered
and
that
could
not
have
been
the
product
of
arm’s-length
bargaining,
and
concluded
to
approve
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
iShares
ESG
Aware
Moderate
Allocation
ETF
(the
“Fund”)
Under
Section
15(c)
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Trust’s
Board
of
Trustees
(the
“Board”),
including
a
majority
of
Board
Members
who
are
not
“interested
persons”
of
the
Trust
(as
that
term
is
defined
in
the
1940
Act)
(the
“Independent
Board
Members”),
is
required
annually
to
consider
the
approval
of
the
Investment
Advisory
Agreement
between
the
Trust
and
BFA
(the
“Advisory
Agreement”)
on
behalf
of
the
Fund.
The
Board’s
consideration
entails
year-long
process
whereby
the
Board
and
its
committees
(composed
solely
of
Independent
Board
Members)
assess
BlackRock’s
services
to
the
Fund,
including
investment
management;
fund
accounting;
administrative
and
shareholder
services;
oversight
of
the
Fund’s
service
providers;
risk
management
and
oversight;
legal
and
compliance
services;
and
ability
to
Board
Review
and
Approval
of
Investment
Advisory
Contract
(continued)
2023
iShares
Annual
Report
to
Shareholders
40
meet
applicable
legal
and
regulatory
requirements.
The
Independent
Board
Members
requested,
and
BFA
provided,
such
information
as
the
Independent
Board
Members,
with
advice
from
independent
counsel,
deemed
reasonably
necessary
to
evaluate
the
Advisory
Agreement.
At
meetings
on
May
2,
2023
and
May
15,
2023,
a
committee
composed
of
all
of
the
Independent
Board
Members
(the
“15(c)
Committee”),
with
independent
counsel,
met
with
management
and
reviewed
and
discussed
information
provided
in
response
to
initial
requests
of
the
15(c)
Committee
and/or
its
independent
counsel,
and
requested
certain
additional
information,
which
management
agreed
to
provide.
At
a
meeting
held
on
June
7-8,
2023,
the
Board,
including
the
Independent
Board
Members,
reviewed
the
additional
information
provided
by
management
in
response
to
these
requests.
After
extensive
discussions
and
deliberations,
the
Board,
including
all
of
the
Independent
Board
Members,
approved
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
based
on
a
review
of
qualitative
and
quantitative
information
provided
by
BFA
and
their
cumulative
experience
as
Board
Members.
The
Board
noted
its
satisfaction
with
the
extent
and
quality
of
information
provided
and
its
frequent
interactions
with
management,
as
well
as
the
detailed
responses
and
other
information
provided
by
BFA.
The
Independent
Board
Members
were
advised
by
their
independent
counsel
throughout
the
process,
including
about
the
legal
standards
applicable
to
their
review.
In
approving
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
the
Board,
including
the
Independent
Board
Members,
considered
various
factors,
including:
(i)
the
expenses
and
performance
of
the
Fund;
(ii)
the
nature,
extent
and
quality
of
the
services
provided
by
BFA;
(iii)
the
costs
of
services
provided
to
the
Fund
and
profits
realized
by
BFA
and
its
affiliates;
(iv)
potential
economies
of
scale
and
the
sharing
of
related
benefits;
(v)
the
fees
and
services
provided
for
other
comparable
funds/accounts
managed
by
BFA
and
its
affiliates;
and
(vi)
other
benefits
to
BFA
and/or
its
affiliates.
The
material
factors,
none
of
which
was
controlling,
and
conclusions
that
formed
the
basis
for
the
Board,
including
the
Independent
Board
Members,
to
approve
the
continuance
of
the
Advisory
Agreement
are
discussed
below.
Expenses
and
Performance
of
the
Fund:
The
Board
reviewed
statistical
information
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
an
independent
provider
of
investment
company
data,
regarding
the
expense
ratio
components,
including
gross
and
net
total
expenses,
fees
and
expenses
of
other
fund(s)
in
which
the
Fund
invests
(if
applicable),
and
waivers/reimbursements
(if
applicable)
of
the
Fund
in
comparison
with
the
same
information
for
other
ETFs,
objectively
selected
by
Broadridge
as
comprising
the
Fund’s
applicable
expense
peer
group
pursuant
to
Broadridge’s
proprietary
ETF
methodology
(the
“Peer
Group”).
The
Board
was
provided
with
a
detailed
description
of
the
proprietary
ETF
methodology
used
by
Broadridge
to
determine
the
Fund’s
Peer
Group.
The
Board
noted
that,
due
to
the
limitations
in
providing
comparable
funds
in
the
Peer
Group,
the
statistical
information
provided
in
Broadridge’s
report
may
or
may
not
provide
meaningful
direct
comparisons
to
the
Fund
in
all
instances.
The
Board
also
noted
that
the
investment
advisory
fee
rate
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
for
the
Fund
were
higher
than
the
median
of
the
investment
advisory
fee
rates
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
of
the
funds
in
its
Peer
Group,
excluding
iShares
funds.
In
addition,
to
the
extent
that
any
of
the
comparison
funds
included
in
the
Peer
Group,
excluding
iShares
funds,
track
the
same
index
as
the
Fund,
Broadridge
also
provided,
and
the
Board
reviewed,
a
comparison
of
the
Fund’s
performance
for
the
one-year,
three-year,
five-year,
ten-year,
and
since
inception
periods,
as
applicable,
and
for
the
quarter
ended
December
31,
2022,
to
that
of
such
relevant
comparison
fund(s)
for
the
same
periods.
The
Board
noted
that
the
Fund
seeks
to
track
its
specified
underlying
index
and
that,
during
the
year,
the
Board
received
periodic
reports
on
the
Fund’s
short-
and
longer-term
performance
in
comparison
with
its
underlying
index.
Such
periodic
comparative
performance
information,
including
additional
detailed
information
as
requested
by
the
Board,
was
also
considered.
The
Board
noted
that
the
Fund
generally
performed
in
line
with
its
underlying
index
over
the
relevant
periods.
Based
on
this
review,
the
other
factors
considered
at
the
meeting,
and
their
general
knowledge
of
ETF
pricing,
the
Board
concluded
that
the
investment
advisory
fee
rate
and
expense
level
and
the
historical
performance
of
the
Fund
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Nature,
Extent
and
Quality
of
Services
Provided:
Based
on
management’s
representations,
including
information
about
ongoing
enhancements
and
initiatives
with
respect
to
the
iShares
business,
including
with
respect
to
capital
markets
support
and
analysis,
technology,
portfolio
management,
product
design
and
quality,
compliance
and
risk
management,
global
public
policy
and
other
services,
the
Board
expected
that
there
would
be
no
diminution
in
the
scope
of
services
required
of
or
provided
by
BFA
under
the
Advisory
Agreement
for
the
coming
year
as
compared
with
the
scope
of
services
provided
by
BFA
during
prior
years.
In
reviewing
the
scope
of
these
services,
the
Board
considered
BFA’s
investment
philosophy
and
experience,
noting
that
BFA
and
its
affiliates
have
committed
significant
resources
over
time,
including
during
the
past
year,
to
support
the
iShares
funds
and
their
shareholders
and
have
made
significant
investments
into
the
iShares
business.
The
Board
also
considered
BFA’s
compliance
program
and
its
compliance
record
with
respect
to
the
Fund,
including
related
programs
implemented
pursuant
to
regulatory
requirements.
In
that
regard,
the
Board
noted
that
BFA
reports
to
the
Board
about
portfolio
management
and
compliance
matters
on
a
periodic
basis
in
connection
with
regularly
scheduled
meetings
of
the
Board,
and
on
other
occasions
as
necessary
and
appropriate,
and
has
provided
information
and
made
relevant
officers
and
other
employees
of
BFA
(and
its
affiliates)
available
as
needed
to
provide
further
assistance
with
these
matters.
The
Board
also
reviewed
the
background
and
experience
of
the
persons
responsible
for
the
day-to-day
management
of
the
Fund,
as
well
as
the
resources
available
to
them
in
managing
the
Fund.
In
addition
to
the
above
considerations,
the
Board
reviewed
and
considered
detailed
presentations
regarding
BFA’s
investment
performance,
investment
and
risk
management
processes
and
strategies
provided
at
the
May
2,
2023
meeting
and
throughout
the
year,
and
matters
related
to
BFA’s
portfolio
compliance
program
and
other
compliance
programs
and
services.
Based
on
review
of
this
information,
and
the
performance
information
discussed
above,
the
Board
concluded
that
the
nature,
extent
and
quality
of
services
provided
to
the
Fund
under
the
Advisory
Agreement
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Costs
of
Services
Provided
to
the
Fund
and
Profits
Realized
by
BFA
and
its
Affiliates:
The
Board
reviewed
information
about
the
estimated
profitability
to
BlackRock
in
managing
the
Fund,
based
on
the
fees
payable
to
BFA
and
its
affiliates
(including
fees
under
the
Advisory
Agreement),
and
other
sources
of
revenue
and
expense
to
BFA
and
its
affiliates
from
the
Fund’s
operations
for
the
last
calendar
year.
The
Board
reviewed
BlackRock’s
methodology
for
calculating
estimated
profitability
of
the
iShares
funds,
noting
that
the
15(c)
Committee
and
the
Board
had
focused
on
the
methodology
and
profitability
presentation.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors,
including,
among
other
things,
fee
waivers
by
BFA,
the
types
of
funds
managed,
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
individual
fund
levels
is
challenging.
The
Board
discussed
with
management
the
sources
of
direct
and
ancillary
revenue,
including
the
revenues
to
BTC,
a
BlackRock
affiliate,
from
securities
lending
by
the
Fund.
The
Board
also
discussed
BFA’s
estimated
profit
margin
as
reflected
in
the
Fund’s
profitability
analysis
and
reviewed
information
regarding
potential
economies
of
scale
(as
discussed
below).
Based
on
this
review,
the
Board
concluded
that
the
information
considered
with
respect
to
the
profits
realized
by
BFA
and
its
affiliates
under
the
Advisory
Agreement
and
from
other
relationships
between
the
Fund
and
BFA
and/or
its
affiliates,
if
any,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Board
Review
and
Approval
of
Investment
Advisory
Contract
(continued)
41
Board
Review
and
Approval
of
Investment
Advisory
Contract
Economies
of
Scale:
The
Board
reviewed
information
and
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
the
Fund
increase,
noting
that
the
issue
of
potential
economies
of
scale
had
been
focused
on
by
the
15(c)
Committee
and
the
Board
during
their
meetings
and
addressed
by
management.
The
15(c)
Committee
and
the
Board
received
information
regarding
BlackRock’s
historical
estimated
profitability
(as
discussed
above),
including
BFA’s
and
its
affiliates’
estimated
costs
in
providing
services.
The
estimated
cost
information
distinguished,
among
other
things,
between
fixed
and
variable
costs,
and
showed
how
the
level
and
nature
of
fixed
and
variable
costs
may
impact
the
existence
or
size
of
scale
benefits,
with
the
Board
recognizing
that
potential
economies
of
scale
are
difficult
to
measure.
The
15(c)
Committee
and
the
Board
reviewed
information
provided
by
BFA
regarding
the
sharing
of
scale
benefits
with
the
iShares
funds
through
various
means,
including,
as
applicable,
through
relatively
low
fee
rates
established
at
inception,
breakpoints,
waivers,
or
other
fee
reductions,
as
well
as
through
additional
investment
in
the
iShares
business
and
the
provision
of
improved
or
additional
infrastructure
and
services
to
the
iShares
funds
and
their
shareholders.
The
Board
noted
that
the
Advisory
Agreement
for
the
Fund
did
not
provide
for
breakpoints
in
the
Fund’s
investment
advisory
fee
rate
as
the
assets
of
the
Fund
increase.
However,
the
Board
noted
that
it
would
continue
to
assess
the
appropriateness
of
adding
breakpoints
in
the
future.
The
Board
concluded
that
this
review
of
potential
economies
of
scale
and
the
sharing
of
related
benefits,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Fees
and
Services
Provided
for
Other
Comparable
Funds/Accounts
Managed
by
BFA
and
its
Affiliates:
The
Board
received
and
considered
information
regarding
the
investment
advisory/management
fee
rates
for
other
funds/accounts
in
the
U.S.
for
which
BFA
(or
its
affiliates)
provides
investment
advisory/management
services,
including
open-end
funds
registered
under
the
1940
Act
(including
sub-advised
funds),
collective
trust
funds
and
institutional
separate
accounts
(collectively,
the
“Other
Accounts”).
The
Board
acknowledged
BFA’s
representation
that
the
iShares
funds
are
fundamentally
different
investment
vehicles
from
the
Other
Accounts.
The
Board
received
detailed
information
regarding
how
the
Other
Accounts
generally
differ
from
the
Fund,
including
in
terms
of
the
types
of
services
and
generally
more
extensive
services
provided
to
the
Fund,
as
well
as
other
significant
differences.
In
that
regard,
the
Board
considered
that
the
pricing
of
services
to
institutional
clients
is
typically
based
on
a
number
of
factors
beyond
the
nature
and
extent
of
the
specific
services
to
be
provided
and
often
depends
on
the
overall
relationship
between
the
client
and
its
affiliates
and
the
adviser
and
its
affiliates.
In
addition,
the
Board
considered
the
relative
complexity
and
inherent
risks
and
challenges
of
managing
and
providing
other
services
to
the
Fund,
as
a
publicly
traded
investment
vehicle,
as
compared
to
the
Other
Accounts,
particularly
those
that
are
institutional
clients,
in
light
of
differing
regulatory
requirements
and
client-imposed
mandates.
The
Board
noted
that
BFA
and
its
affiliates
do
not
manage
Other
Accounts
with
substantially
the
same
investment
objective
and
strategy
as
the
Fund
and
that
track
the
same
index
as
the
Fund.
The
Board
also
acknowledged
management’s
assertion
that,
for
certain
iShares
funds,
and
for
client
segmentation
purposes,
BlackRock
has
launched
an
iShares
fund
that
may
provide
a
similar
investment
exposure
at
a
lower
investment
advisory
fee
rate.
The
Board
considered
the
“all-inclusive”
nature
of
the
Fund’s
advisory
fee
structure,
and
the
Fund’s
expenses
borne
by
BFA
under
this
arrangement
and
noted
that
the
investment
advisory
fee
rate
under
the
Advisory
Agreement
for
the
Fund
was
generally
higher
than
the
investment
advisory/management
fee
rates
for
certain
of
the
Other
Accounts
(particularly
institutional
clients)
and
concluded
that
the
differences
appeared
to
be
consistent
with
the
factors
discussed.
Other
Benefits
to
BFA
and/or
its
Affiliates:
The
Board
reviewed
other
benefits
or
ancillary
revenue
received
by
BFA
and/or
its
affiliates
in
connection
with
the
services
provided
to
the
Fund
by
BFA,
both
direct
and
indirect,
including,
but
not
limited
to,
payment
of
revenue
to
BTC,
the
Fund’s
securities
lending
agent,
for
loaning
portfolio
securities,
as
applicable
(which
was
included
in
the
profit
margins
reviewed
by
the
Board
pursuant
to
BFA’s
estimated
profitability
methodology),
payment
of
advisory
fees
or
other
fees
to
BFA
(or
its
affiliates)
in
connection
with
any
investments
by
the
Fund
in
other
funds
for
which
BFA
(or
its
affiliates)
provides
investment
advisory
services
or
other
services,
and
BlackRock’s
profile
in
the
investment
community.
The
Board
further
considered
other
direct
benefits
that
might
accrue
to
BFA,
including
the
potential
for
reduction
in
the
Fund’s
expenses
that
are
borne
by
BFA
under
the
“all-inclusive”
management
fee
arrangement,
due
in
part
to
the
size
and
scope
of
BFA’s
investment
operations
servicing
the
Fund
(and
other
funds
in
the
iShares
complex)
as
well
as
in
response
to
a
changing
market
environment.
The
Board
also
reviewed
and
considered
information
provided
by
BFA
concerning
authorized
participant
primary
market
order
processing
services
that
are
provided
by
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
BFA,
and
paid
for
by
authorized
participants
under
the
ETF
Servicing
Platform.
The
Board
also
noted
the
revenue
received
by
BFA
and/or
its
affiliates
pursuant
to
an
agreement
that
permits
a
service
provider
to
use
certain
portions
of
BlackRock’s
technology
platform
to
service
accounts
managed
by
BFA
and/or
its
affiliates,
including
the
iShares
funds.
The
Board
noted
that
BFA
generally
does
not
use
soft
dollars
or
consider
the
value
of
research
or
other
services
that
may
be
provided
to
BFA
(including
its
affiliates)
in
selecting
brokers
for
portfolio
transactions
for
the
Fund.
The
Board
concluded
that
any
such
ancillary
benefits
would
not
be
disadvantageous
to
the
Fund
and
thus
would
not
alter
the
Board’s
conclusion
with
respect
to
the
appropriateness
of
approving
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Conclusion:
Based
on
a
review
of
the
factors
described
above,
as
well
as
such
other
factors
as
deemed
appropriate
by
the
Board,
the
Board,
including
all
of
the
Independent
Board
Members,
determined
that
the
Fund’s
investment
advisory
fee
rate
under
the
Advisory
Agreement
does
not
constitute
a
fee
that
is
so
disproportionately
large
as
to
bear
no
reasonable
relationship
to
the
services
rendered
and
that
could
not
have
been
the
product
of
arm’s-length
bargaining,
and
concluded
to
approve
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Supplemental
Information
(unaudited)
2023
iShares
Annual
Report
to
Shareholders
42
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.
July
31,
2023
Tailored
Shareholder
Reports
for
Open-End
Mutual
Funds
and
ETFs
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Funds.
Premium/Discount
Information
Information
on
the
Fund’s
net
asset
value,
market
price,
premiums
and
discounts,
and
bid-ask
spreads
can
be
found
at
iShares.com
.
Total
Cumulative
Distributions
for
the
Fiscal
Year
%
Breakdown
of
the
Total
Cumulative
Distributions
for
the
Fiscal
Year
iShares
ETF
Net
Investment
Income
Net
Realized
Capital
Gains
Return
of
Capital
Total
Per
Share
Net
Investment
Income
Net
Realized
Capital
Gains
Return
of
Capital
Total
Per
Share
ESG
Aware
Conservative
Allocation
.........
$
0.587609
$
—
$
—
$
0.587609
100%
—%
—%
100%
ESG
Aware
Growth
Allocation
.............
0.618927
—
—
0.618927
100
—
—
100
ESG
Aware
Moderate
Allocation
............
0.589641
—
—
0.589641
100
—
—
100
Trustee
and
Officer
Information
(unaudited)
43
Trustee
and
Officer
Information
The
Board
of
Trustees
has
responsibility
for
the
overall
management
and
operations
of
the
Funds,
including
general
supervision
of
the
duties
performed
by
BFA
and
other
service
providers.
Each
Trustee
serves
until
he
or
she
resigns,
is
removed,
dies,
retires
or
becomes
incapacitated.
Each
officer
shall
hold
office
until
his
or
her
successor
is
elected
and
qualifies
or
until
his
or
her
death,
resignation
or
removal.
Trustees
who
are
not
“interested
persons”
(as
defined
in
the
1940
Act)
of
the
Trust
are
referred
to
as
independent
trustees
(“Independent
Trustees”).
The
registered
investment
companies
advised
by
BFA
or
its
affiliates
(the
“BlackRock-advised
Funds”)
are
organized
into
one
complex
of
open-end
equity,
multi-asset,
index
and
money
market
funds
and
ETFs
(the
“BlackRock
Multi-Asset
Complex”),
one
complex
of
closed-end
funds
and
open-end
non-index
fixed-income
funds
(including
ETFs)
(the
“BlackRock
Fixed-Income
Complex”)
and
one
complex
of
ETFs
(“Exchange-Traded
Fund
Complex”)
(each,
a
“BlackRock
Fund
Complex”).
Each
Fund
is
included
in
the
Exchange-Traded
Fund
Complex.
Each
Trustee
also
serves
as
a
Director
of
iShares,
Inc.
and
a
Trustee
of
iShares
U.S.
ETF
Trust,
and,
as
a
result,
oversees
all
of
the
funds
within
the
Exchange-Traded
Fund
Complex,
which
consists
of
387
funds
as
of
July
31,
2023.
With
the
exception
of
Robert
S.
Kapito,
Salim
Ramji
and
Aaron
Wasserman,
the
address
of
each
Trustee
and
officer
is
c/o
BlackRock,
Inc.,
400
Howard
Street,
San
Francisco,
CA
94105.
The
address
of
Mr.
Kapito,
Mr.
Ramji
and
Mr. Wasserman
is
c/o
BlackRock,
Inc.,
50
Hudson
Yards,
New York,
NY
10001.
The
Board
has
designated
John
E.
Kerrigan
as
its
Independent
Board
Chair.
Additional
information
about
the
Funds’
Trustees
and
officers
may
be
found
in
the
Funds’
combined
Statement
of
Additional
Information,
which
is
available
without
charge,
upon
request,
by
calling
toll-free
1-800-iShares
(1-800-474-2737).
Interested
Trustees
(a)
Robert
S.
Kapito
is
deemed
to
be
an
“interested
person”
(as
defined
in
the
1940
Act)
of
the
Trust
due
to
his
affiliations
with
BlackRock,
Inc.
and
its
affiliates.
(b)
Salim
Ramji
is
deemed
to
be
an
“interested
person”
(as
defined
in
the
1940
Act)
of
the
Trust
due
to
his
affiliations
with
BlackRock,
Inc.
and
its
affiliates.
Independent
Trustees
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Other
Directorships
Held
by
Trustee
Robert
S.
Kapito
(a)
(1957)
Trustee
(since
2009).
President,
BlackRock,
Inc.
(since
2006);
Vice
Chairman
of
BlackRock,
Inc.
and
Head
of
BlackRock’s
Portfolio
Management
Group
(since
its
formation
in
1998)
and
BlackRock,
Inc.’s
predecessor
entities
(since
1988);
Trustee,
University
of
Pennsylvania
(since
2009);
President
of
Board
of
Directors,
Hope
&
Heroes
Children’s
Cancer
Fund
(since
2002).
Director
of
BlackRock,
Inc.
(since
2006);
Director
of
iShares,
Inc.
(since
2009);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Salim
Ramji
(b)
(1970)
Trustee
(since
2019).
Senior
Managing
Director,
BlackRock,
Inc.
(since
2014);
Global
Head
of
BlackRock’s
ETF
and
Index
Investments
Business
(since
2019);
Head
of
BlackRock’s
U.S.
Wealth
Advisory
Business
(2015-2019);
Global
Head
of
Corporate
Strategy,
BlackRock,
Inc.
(2014-2015);
Senior
Partner,
McKinsey
&
Company
(2010-2014).
Director
of
iShares,
Inc.
(since
2019);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2019).
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Other
Directorships
Held
by
Trustee
John
E.
Kerrigan
(1955)
Trustee
(since
2005);
Independent
Board
Chair
(since
2022).
Chief
Investment
Officer,
Santa
Clara
University
(since
2002).
Director
of
iShares,
Inc.
(since
2005);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011);
Independent
Board
Chair
of
iShares,
Inc.
and
iShares
U.S.
ETF
Trust
(since
2022).
Jane
D.
Carlin
(1956)
Trustee
(since
2015);
Risk
Committee
Chair
(since
2016).
Consultant
(since
2012);
Member
of
the
Audit
Committee
(2012-2018),
Chair
of
the
Nominating
and
Governance
Committee
(2017-2018)
and
Director
of
PHH
Corporation
(mortgage
solutions)
(2012-2018);
Managing
Director
and
Global
Head
of
Financial
Holding
Company
Governance
&
Assurance
and
the
Global
Head
of
Operational
Risk
Management
of
Morgan
Stanley
(2006-2012).
Director
of
iShares,
Inc.
(since
2015);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2015);
Member
of
the
Audit
Committee
(since
2016),
Chair
of
the
Audit
Committee
(since
2020)
and
Director
of
The
Hanover
Insurance
Group,
Inc.
(since
2016).
Richard
L.
Fagnani
(1954)
Trustee
(since
2017);
Audit
Committee
Chair
(since
2019).
Partner,
KPMG
LLP
(2002-2016);
Director
of
One
Generation
Away
(since
2021).
Director
of
iShares,
Inc.
(since
2017);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2017).
Cecilia
H.
Herbert
(1949)
Trustee
(since
2005);
Nominating
and
Governance
and
Equity
Plus
Committee
Chairs
(since
2022).
Chair
of
the
Finance
Committee
(since
2019)
and
Trustee
and
Member
of
the
Finance,
Audit
and
Quality
Committees
of
Stanford
Health
Care
(since
2016);
Trustee
of
WNET,
New
York’s
public
media
company
(since
2011)
and
Member
of
the
Audit
Committee
(since
2018),
Investment
Committee
(since
2011)
and
Personnel
Committee
(since
2022);
Member
of
the
Wyoming
State
Investment
Funds
Committee
(since
2022);
Director
of
the
Jackson
Hole
Center
for
the
Arts
(since
2021);
Trustee
of
Forward
Funds
(14
portfolios)
(2009-2018);
Trustee
of
Salient
MF
Trust
(4
portfolios)
(2015-2018).
Director
of
iShares,
Inc.
(since
2005);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Drew
E.
Lawton
(1959)
Trustee
(since
2017);
15(c)
Committee
Chair
(since
2017).
Senior
Managing
Director
of
New
York
Life
Insurance
Company
(2010-2015).
Director
of
iShares,
Inc.
(since
2017);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2017);
Director
of
Jackson
Financial
Inc.
(since
2021).
Trustee
and
Officer
Information
(unaudited)
(continued)
2023
iShares
Annual
Report
to
Shareholders
44
Officers
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Other
Directorships
Held
by
Trustee
John
E.
Martinez
(1961)
Trustee
(since
2003);
Securities
Lending
Committee
Chair
(since
2019).
Director
of
Real
Estate
Equity
Exchange,
Inc.
(since
2005);
Director
of
Cloudera
Foundation
(2017-2020);
and
Director
of
Reading
Partners
(2012-2016).
Director
of
iShares,
Inc.
(since
2003);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Madhav
V.
Rajan
(1964)
Trustee
(since
2011);
Fixed-
Income
Plus
Committee
Chair
(since
2019).
Dean,
and
George
Pratt
Shultz
Professor
of
Accounting,
University
of
Chicago
Booth
School
of
Business
(since
2017);
Advisory
Board
Member
(since
2016)
and
Director
(since
2020)
of
C.M.
Capital
Corporation;
Chair
of
the
Board
for
the
Center
for
Research
in
Security
Prices,
LLC
(since
2020);
Robert
K.
Jaedicke
Professor
of
Accounting,
Stanford
University
Graduate
School
of
Business
(2001-2017);
Professor
of
Law
(by
courtesy),
Stanford
Law
School
(2005-2017);
Senior
Associate
Dean
for
Academic
Affairs
and
Head
of
MBA
Program,
Stanford
University
Graduate
School
of
Business
(2010-2016).
Director
of
iShares,
Inc.
(since
2011);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Dominik
Rohé
(1973)
President
(since
2023).
Managing
Director,
BlackRock,
Inc.
(since
2005);
Head
of
Americas
ETF
and
Index
Investments
(since
2023);
Head
of
Latin
America
(2019-
2023).
Trent
Walker
(1974)
Treasurer
and
Chief
Financial
Officer
(since
2020).
Managing
Director,
BlackRock,
Inc.
(since
September
2019);
Chief
Financial
Officer
of
iShares
Delaware
Trust
Sponsor
LLC,
BlackRock
Funds,
BlackRock
Funds
II,
BlackRock
Funds
IV,
BlackRock
Funds
V
and
BlackRock
Funds
VI
(since
2021);
Executive
Vice
President
of
PIMCO
(2016-2019);
Senior
Vice
President
of
PIMCO
(2008-2015);
Treasurer
(2013-2019)
and
Assistant
Treasurer
(2007-2017)
of
PIMCO
Funds,
PIMCO
Variable
Insurance
Trust,
PIMCO
ETF
Trust,
PIMCO
Equity
Series,
PIMCO
Equity
Series
VIT,
PIMCO
Managed
Accounts
Trust,
2
PIMCO-sponsored
interval
funds
and
21
PIMCO-sponsored
closed-end
funds.
Aaron
Wasserman
(1974)
Chief
Compliance
Officer
(since
2023).
Managing
Director
of
BlackRock,
Inc.
(since
2018);
Chief
Compliance
Officer
of
the
BlackRock
Multi-Asset
Complex,
the
BlackRock
Fixed-
Income
Complex
and
the
Exchange-Traded
Fund
Complex
(since
2023);
Deputy
Chief
Compliance
Officer
for
the
BlackRock
Multi-Asset
Complex,
the
BlackRock
Fixed-Income
Complex
and
the
Exchange-Traded
Fund
Complex
(2014-2023).
Marisa
Rolland
(1980)
Secretary
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2023);
Director,
BlackRock,
Inc.
(2018-2022);
Vice
President,
BlackRock,
Inc.
(2010-2017).
Rachel
Aguirre
(1982)
Executive
Vice
President
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2018);
Director,
BlackRock,
Inc.
(2009-2018);
Head
of
U.S.
iShares
Product
(since
2022);
Head
of
EII
U.S.
Product
Engineering
(since
2021);
Co-Head
of
EII’s
Americas
Portfolio
Engineering
(2020-
2021);
Head
of
Developed
Markets
Portfolio
Engineering
(2016-2019).
Jennifer
Hsui
(1976)
Executive
Vice
President
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2009);
Co-Head
of
Index
Equity
(since
2022).
James
Mauro
(1970)
Executive
Vice
President
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2010);
Head
of
Fixed
Income
Index
Investments
in
the
Americas
and
Head
of
San
Francisco
Core
Portfolio
Management
(since
2020).
Effective
March
30,
2023,
Dominik
R
ohé
replaced
Armando
Senra
as
President.
Effective
July
1,
2023,
Aaron
Wasserman
replaced
Charles
Park
as
Chief
Compliance
Officer.
Independent
Trustees
(continued)
General
Information
45
General
Information
Electronic
Delivery
Shareholders
can
sign
up
for
e-mail
notifications
announcing
that
the
shareholder
report
or
prospectus
has
been
posted
on
the
iShares
website
at
iShares.com
.
Once
you
have
enrolled,
you
will
no
longer
receive
prospectuses
and
shareholder
reports
in
the
mail.
To
enroll
in
electronic
delivery:
•
Go
to
icsdelivery.com
.
•
If
your
brokerage
firm
is
not
listed,
electronic
delivery
may
not
be
available.
Please
contact
your
broker-dealer
or
financial
advisor.
Householding
Householding
is
an
option
available
to
certain
fund
investors.
Householding
is
a
method
of
delivery,
based
on
the
preference
of
the
individual
investor,
in
which
a
single
copy
of
certain
shareholder
documents
and
Rule
30e-3
notices
can
be
delivered
to
investors
who
share
the
same
address,
even
if
their
accounts
are
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under
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Please
contact
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if
you
are
interested
in
enrolling
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householding
and
receiving
a
single
copy
of
prospectuses
and
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shareholder
documents,
or
if
you
are
currently
enrolled
in
householding
and
wish
to
change
your
householding
status.
Availability
of
Quarterly
Schedule
of
Investments
The
Funds
file
their
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
their
reports
on
Form
N-PORT.
The
Funds’
Forms
N-PORT
are
available
on
the
SEC’s
website
at
sec.gov
.
Additionally,
each
Fund
makes
its
portfolio
holdings
for
the
first
and
third
quarters
of
each
fiscal
year
available
at
iShares.com/fundreports
.
Availability
of
Proxy
Voting
Policies
and
Proxy
Voting
Records
A
description
of
the
policies
and
procedures
that
the
iShares
Funds
use
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
iShares
Funds
voted
proxies
relating
to
portfolio
securities
during
the
most
recent
twelve-month
period
ending
June
30
is
available
without
charge,
upon
request
(1)
by
calling
toll-free
1-800-474-2737;
(2)
on
the
iShares
website
at
iShares.com
;
and
(3)
on
the
SEC
website
at
sec.gov
.
A
description
of
the
Trust’s
policies
and
procedures
with
respect
to
the
disclosure
of each
Fund’s
portfolio
securities
is
available
in
the
Fund
Prospectus. Each
Fund
discloses
its
portfolio
holdings
daily
and
provides
information
regarding
its
top
holdings
in
Fund
fact
sheets
at
iShares.com
.
Glossary
of
Terms
Used
in
this
Report
2023
iShares
Annual
Report
to
Shareholders
46
Portfolio
Abbreviation
EAFE
Europe,
Australasia
and
Far
East
EM
Emerging
Markets
ESG
Environmental,
Social
And
Governance
ETF
Exchange-Traded
Fund
MSCI
Morgan
Stanley
Capital
International
iS-AR-716-0723
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 BlackRock
Index
Services,
LLC,
nor
does
this
company
make
any
representation
regarding
the
advisability
of
investing
in
the
iShares
Funds.
BlackRock
is
not
affiliated
with
the
company
listed
above.
©2023
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.
JULY
31,
2023
2023
Annual
Report
iShares
Trust
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
|
SMMV
|Cboe
BZX
iShares
U.S.
Equity
Factor
ETF
|
LRGF
|
NYSE
Arca
iShares
U.S.
Small-Cap
Equity
Factor
ETF
|
SMLF
|
NYSE
Arca
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
|
TECB
|
NYSE
Arca
Dear
Shareholder,
Despite
an
uncertain
economic
landscape
during
the
12-month
reporting
period
ended
July
31,
2023,
the
resilience
of
the
U.S.
economy
in
the
face
of
ever
tighter
financial
conditions
provided
an
encouraging
backdrop
for
investors.
While
inflation
was
near
multi-decade
highs
at
the
beginning
of
the
period,
it
declined
precipitously
as
commodity
prices
dropped.
Labor
shortages
also
moderated,
although
wages
continued
to
grow
and
unemployment
rates
reached
the
lowest
levels
in
decades.
This
robust
labor
market
powered
further
growth
in
consumer
spending,
backstopping
the
economy.
Equity
returns
were
solid,
as
the
durability
of
consumer
sentiment
eased
investors’
concerns
about
the
economy’s
trajectory.
The
U.S.
economy
resumed
growth
in
the
third
quarter
of
2022
and
continued
to
expand
thereafter.
Most
major
classes
of
equities
advanced,
including
large-
and
small-capitalization
U.S.
stocks
and
equities
from
developed
and
emerging
markets.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
elevated
inflation
and
attempted
to
anticipate
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
although
high-yield
corporate
bond
prices
fared
significantly
better
than
investment-
grade
bonds
as
demand
from
yield-seeking
investors
remained
strong.
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
has
been
more
persistent
than
expected,
raised
interest
rates
seven
times
during
the
12-month
period
ended
July
31,
2023.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
incrementally
reduced
its
balance
sheet
by
not
replacing
securities
that
reach
maturity.
However,
the
Fed
declined
to
raise
interest
rates
at
its
June
2023
meeting,
the
first
time
it
paused
its
tightening
in
the
current
cycle,
before
again
raising
rates
in
July
2023.
Supply
constraints
appear
to
have
become
an
embedded
feature
of
the
new
macroeconomic
environment,
making
it
difficult
for
developed
economies
to
increase
production
without
sparking
higher
inflation.
Geopolitical
fragmentation
and
an
aging
population
risk
further
exacerbating
these
constraints,
keeping
the
labor
market
tight
and
wage
growth
high.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes
and
recently
opted
for
a
pause,
we
believe
that
the
new
economic
regime
means
that
the
Fed
will
need
to
maintain
high
rates
for
an
extended
period
to
keep
inflation
under
control.
Furthermore,
ongoing
structural
changes
may
mean
that
the
Fed
will
be
hesitant
to
cut
interest
rates
in
the
event
of
faltering
economic
activity
lest
inflation
accelerate
again.
We
believe
investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt.
While
we
favor
an
overweight
position
to
developed
market
equities
in
the
long
term,
we
prefer
an
underweight
stance
in
the
near-term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
macroeconomic
constraints.
Nevertheless,
we
are
overweight
on
emerging
market
stocks
in
the
near-term
as
growth
trends
for
emerging
markets
appear
brighter.
We
also
believe
that
stocks
with
an
A.I.
tilt
should
benefit
from
an
investment
cycle
that
is
set
to
support
revenues
and
margins.
We
are
neutral
on
credit
overall
amid
tightening
credit
and
financial
conditions;
however,
there
are
selective
opportunities
in
the
near
term.
For
fixed
income
investing
with
a
six-
to
twelve-month
horizon,
we
see
the
most
attractive
investments
in
short-term
U.S.
Treasuries,
U.S.
inflation-linked
bonds,
U.S.
mortgage-backed
securities,
and
hard-currency
emerging
market
bonds.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
iShares.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock,
Inc.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
July
31,
2023
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
13.52
%
13.02
%
U.S.
small
cap
equities
(Russell
2000
®
Index)
4.51
7.91
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
6.65
16.79
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
3.26
8.35
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
2.34
3.96
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(2.08
)
(7.56
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(1.02
)
(3.37
)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
0.20
0.93
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
2.92
4.42
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Market
Overview
.......................................................................................................
4
Fund
Summary
........................................................................................................
5
About
Fund
Performance
..................................................................................................
13
Disclosure
of Expenses
...................................................................................................
13
Schedules
of
Investments
.................................................................................................
14
Financial
Statements:
Statements
of
Assets
and
Liabilities
.........................................................................................
43
Statements
of
Operations
................................................................................................
44
Statements
of
Changes
in
Net
Assets
........................................................................................
45
Financial
Highlights
.....................................................................................................
47
Notes
to
Financial
Statements
...............................................................................................
51
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
61
Important
Tax
Information
(Unaudited)
.................................................................................................
62
Board
Review
and
Approval
of
Investment
Advisory
Contract
............................................................................
63
Supplemental
Information
.................................................................................................
67
Trustee
and
Officer
Information
..............................................................................................
68
General
Information
.....................................................................................................
70
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
71
Market
Overview
2023
iShares
Annual
Report
To
Shareholders
4
iShares
Trust
Global Market
Overview
Global
equity
markets
advanced
during
the
12
months
ended July
31,
2023
(“reporting
period”),
supported
by
continued
economic
growth
and
moderating
inflation.
The
MSCI
ACWI,
a
broad
global
equity
index
that
includes
both
developed
and
emerging
markets,
returned
12.91%
in
U.S.
dollar
terms
for
the
reporting
period.
Despite
concerns
about
the
impact
of
higher
interest
rates
and
rising
prices,
the
global
economy
continued
to
grow,
albeit
at
a
slower
pace
than
during
the
initial
post-pandemic
recovery.
Inflation
began
to
subside
in
most
regions
of
the
world,
and
lower
energy
prices
reduced
pressure
on
consumers,
leading
consumer
and
business
sentiment
to
improve.
While
the
Russian
invasion
of
Ukraine
continued
to
disrupt
trade
in
Europe
and
elsewhere,
market
adaptation
lessened
the
economic
impact
of
the
ongoing
war.
The
prices
of
oil,
natural
gas,
and
wheat
all
declined
during
the
reporting
period,
easing
pressure
on
the
world’s
economies.
The
U.S.
Federal
Reserve
(“Fed”)
tightened
monetary
policy
rapidly,
raising
short-term
interest
rates
seven
times
during
the
reporting
period.
The
pace
of
tightening
decelerated
as
the
Fed
twice
lowered
the
increment
of
increase
before
pausing
entirely
in
June
2023,
the
first
time
it
declined
to
take
action
since
the
tightening
cycle
began.
However,
the
Fed
then
raised
interest
rates
again
at
its
July
2023
meeting
and
stated
that
it
would
continue
to
monitor
economic
data.
The
Fed
also
continued
to
decrease
the
size
of
its
balance
sheet
by
reducing
the
store
of
U.S.
Treasuries
it
had
accumulated
to
stabilize
markets
in
the
early
phases
of
the
coronavirus
pandemic.
Despite
the
tightening
financial
conditions,
the
U.S.
economy
demonstrated
continued
strength,
and
U.S.
equities
advanced.
The
economy
returned
to
growth
in
the
third
quarter
of
2022
and
showed
robust,
if
slightly
slower,
growth
thereafter.
Consumers
powered
the
economy
and
increased
their
spending
in
both
nominal
and
inflation-adjusted
terms.
Spending
was
helped
by
a
strong
labor
market,
as
unemployment
remained
very
low
in
historic
terms,
and
the
total
number
of
employed
persons
reached
an
all-time
high.
Tightness
in
the
labor
market
drove
higher
wages,
although
wage
growth
slowed
as
the
reporting
period
continued.
European
stocks
outpaced
their
counterparts
in
most
other
regions
of
the
globe,
advancing
strongly
for
the
reporting
period
despite
modest
economic
growth.
European
stocks
benefited
from
a
solid
recovery
following
the
early
phases
of
the
war
in
Ukraine.
While
the
conflict
disrupted
critical
natural
gas
supplies,
new
sources
were
secured
and
prices
declined,
while
a
warm
winter
helped
moderate
consumption.
The
European
Central
Bank
(“ECB”)
responded
to
the
highest
inflation
since
the
introduction
of
the
euro
by
raising
interest
rates
eight
times
and
beginning
to
reduce
the
size
of
its
debt
holdings.
Stocks
in
the
Asia-Pacific
region
gained,
albeit
at
a
slower
pace
than
other
regions
of
the
world.
Japan
returned
to
growth
in
the
fourth
quarter
of
2022
and
first
quarter
of
2023,
as
strong
business
investment
and
exports
helped
boost
the
economy
and
support
Japanese
equities.
However,
Chinese
stocks
were
negatively
impacted
by
slowing
economic
growth.
While
investors
were
initially
optimistic
following
China’s
lifting
of
several
pandemic-related
lockdowns
in
December
2022,
subsequent
performance
disappointed,
and
tensions
with
the
U.S.
increased.
Emerging
market
stocks
advanced,
as
the
improving
global
economic
environment
reassured
investors.
The
declining
value
of
the
U.S.
dollar
relative
to
many
other
currencies
and
the
slowing
pace
of
the
Fed’s
interest
rate
increases
also
supported
emerging
market
stocks.
Fund
Summary
as
of
July
31,
2023
5
Fund
Summary
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
Investment
Objective
The
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
small-capitalization
U.S.
equities
that,
in
the
aggregate,
have
lower
volatility
characteristics
relative
to
the
small-capitalization
U.S.
equity
market,
as
represented
by
the
MSCI
USA
Small
Cap
Minimum
Volatility
(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.
Performance
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
September
7,
2016.
The
first
day
of
secondary
market
trading
was
September
9,
2016.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
5
Years
Since
Inception
1
Year
5
Years
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(0.12)%
3.86%
6.72%
(0.12)%
20.83%
56.60%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(0.08)
3.84
6.72
(0.08)
20.74
56.62
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(0.12)
4.01
6.90
(0.12)
21.71
58.39
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
982.60
$
0.98
$
1,000.00
$
1,023.80
$
1.00
0.20%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
To
Shareholders
6
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
Portfolio
Management
Commentary
Stocks
of
small-market-capitalization
companies
with
lower
volatility
characteristics
were
relatively
flat
for
the
reporting
period.
The
financials
sector,
particularly
banks,
detracted
the
most
from
the
Index’s
return.
The
failure
of
several
prominent
banks
during
the
second
half
of
the
reporting
period
sent
the
stocks
of
financial
institutions
sharply
lower
and
heightened
uncertainty
among
investors.
Rising
interest
rates
increased
bond
yields,
which
led
bank
depositors
to
shift
some
assets
from
savings
accounts,
further
pressuring
bank
stocks.
However,
bank
stocks
partially
rebounded
after
government
intervention
led
to
swift
reorganizations,
easing
investor
concerns
about
additional
bank
failures.
The
real
estate
sector,
notably
equity
real
estate
investment
trusts
(“REITs”),
also
detracted
from
the
Index’s
performance.
Rising
bond
yields
offered
dividend-seeking
investors
an
alternative
to
the
payouts
offered
by
REITs.
Slowing
housing
sales
forecasts
lowered
the
demand
outlook
for
self-storage
units,
weakening
diversified
REITs
that
own
the
facilities.
Conversely,
the
industrials
sector
contributed
to
the
Index’s
performance,
led
by
the
capital
goods
industry.
Business
investment
in
capital
goods
increased,
supported
by
continued
strong
consumer
spending,
despite
concerns
of
an
economic
slowdown.
The
commercial
and
professional
services
industry
also
contributed
to
the
Index’s
performance,
as
companies
that
provide
services
to
the
U.S.
federal
government
benefited
from
news
of
an
agreement
between
the
White
House
and
Congress
to
raise
the
federal
debt
ceiling
without
major
spending
cuts.
The
materials
sector
also
contributed
to
the
Index’s
return,
driven
by
metals
and
mining
companies,
particularly
gold
producers.
Amid
rising
geopolitical
uncertainty
stemming
from
the
war
in
Ukraine
and
worsening
relations
between
the
U.S.
and
China,
central
banks
around
the
world
bought
more
gold
than
at
any
time
since
the
1950s.
In
terms
of
relative
performance,
the
Index
underperformed
the
broader
market
for
small-company
stocks,
as
represented
by
the
MSCI
USA
Small
Cap
Index.
The
Index
seeks
exposure
to
less
volatile
stocks,
and
as
the
global
economy
stabilized
and
equity
markets
expanded,
investor
appetite
for
risk
increased,
disadvantaging
lower-volatility
equities.
An
overweight
position
in
the
financials
sector,
particularly
in
banks,
and
stock
selection
detracted
the
most
from
relative
performance.
An
underweight
position
in
the
information
technology
sector
further
detracted.
Notably,
there
was
a
lack
of
exposure
to
the
technology
hardware
and
equipment
industry,
which
climbed
amid
increased
optimism
about
the
growth
of
artificial
intelligence
applications.
Among
industrials,
overweight
exposure
to
the
capital
goods
industry
also
weighed
on
relative
performance.
Portfolio
Information
SECTOR
ALLOCATION
—
%
Sector
Percent
of
Total
Investments
(a)
—
Health
Care
....................................
19.7
%
Financials
......................................
17.6
Industrials
......................................
13.9
Consumer
Discretionary
............................
8.8
Consumer
Staples
................................
8.6
Information
Technology
.............................
7.5
Utilities
........................................
7.3
Materials
......................................
5.3
Communication
Services
............................
4.9
Real
Estate
.....................................
3.7
Energy
........................................
2.7
TEN
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
Landstar
System,
Inc.
...............................
1.7
%
Murphy
USA,
Inc.
.................................
1.6
Agree
Realty
Corp.
................................
1.4
Chemed
Corp.
....................................
1.4
Royal
Gold,
Inc.
...................................
1.4
IDACORP,
Inc.
...................................
1.3
Dolby
Laboratories,
Inc.,
Class
A
.......................
1.3
Flowers
Foods,
Inc.
................................
1.2
Alkermes
plc
.....................................
1.1
FTI
Consulting,
Inc.
................................
1.0
(a)
Excludes
money
market
funds.
Fund
Summary
as
of
July
31,
2023
7
Fund
Summary
iShares
®
U.S.
Equity
Factor
ETF
Investment
Objective
The
iShares
U.S.
Equity
Factor
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
large-
and
mid-capitalization
stocks
that
have
favorable
exposure
to
target
style
factors
subject
to
constraints,
as
represented
by
the
STOXX
U.S.
Equity
Factor
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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
April
28,
2015.
The
first
day
of
secondary
market
trading
was
April
30,
2015.
Index
performance
through
May
31,
2022
reflects
the
performance
of
the
MSCI
USA
Diversified
Multiple-Factor
Index.
Index
performance
beginning
on
June
01,
2022
reflects
the
performance
of
the
STOXX
U.S.
Equity
Factor
Index.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
5
Years
Since
Inception
1
Year
5
Years
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13.09%
8.95%
9.54%
13.09%
53.54%
112.29%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13.06
8.96
9.54
13.06
53.55
112.30
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13.15
9.13
9.75
13.15
54.79
115.57
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,119.70
$
0.42
$
1,000.00
$
1,024.40
$
0.40
0.08%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
To
Shareholders
8
iShares
®
U.S.
Equity
Factor
ETF
Portfolio
Management
Commentary
Stocks
of
large-
and
mid-
capitalization
companies
with
favorable
exposure
to
five
target
style
factors—value,
quality,
momentum,
low
volatility,
and
small
size—advanced
for
the
reporting
period.
The
information
technology
sector
contributed
the
most
to
the
Index’s
performance
amid
increasing
optimism
about
the
growth
and
impact
of
artificial
intelligence
(“AI”)
after
the
release
of
new
applications
using
the
technology
attracted
considerable
consumer
and
business
interest.
Companies
in
the
semiconductors
and
semiconductor
equipment
industry
that
manufacture
expensive
graphic
processing
units
used
for
AI
purposes
led
the
gains.
Advances
in
AI
capability
prompted
companies
from
across
a
wide
range
of
industries
to
commit
to
the
technology
as
a
strategy
to
transform
their
businesses,
necessitating
investment
in
these
specialized
microprocessors.
Advanced
microchips
can
process
large
amounts
of
data
simultaneously
and,
by
using
algorithms
and
statistical
models,
recognize
patterns
of
information
which
can
be
used
to
make
predictions
or
draw
inferences.
That
capability
allows
computer
systems
to
learn
and
adapt
without
following
explicit
instructions
in
order
to
generate
key
insights
or
original
content.
The
software
industry
also
contributed,
as
companies
committed
to
rapidly
develop
new
products
using
AI
and
incorporate
AI
into
existing
products
to
automate
and
simplify
tasks
for
businesses
and
consumers.
Investor
optimism
about
these
products
as
new
sources
of
corporate
revenue
and
profits
drove
software
stocks
higher.
In
addition,
increased
demand
for
cloud
computing
propelled
software
stocks.
Software
companies
that
offer
AI
computing
applications
over
cloud-based
infrastructure
benefited
from
the
increased
demand
from
businesses
that
want
access
to
accelerated
computing
without
having
to
invest
in
their
own
data
centers.
Software
as
a
service
companies
also
grew
amid
rising
demand
for
consumer
data
and
tools
to
manage
inventories
and
assess
sales
trends.
The
financials
sector
also
added
to
the
Index’s
performance.
Brokerage
firms
in
the
capital
markets
industry
advanced,
as
higher
interest
rates
supported
increased
net
interest
income—the
difference
between
what
the
companies
pay
out
in
interest
and
the
interest
they
earn
on
cash
in
client
accounts.
In
addition,
automated
trading
tools
attracted
customers
to
low-cost
electronic
brokers.
Wealth
management
firms
benefited
from
stronger
stock
market
returns
and
more
clients
shifting
their
assets
to
managed
accounts.
Higher
fee
income
from
the
increased
assets
under
management
boosted
profitability.
Portfolio
Information
SECTOR
ALLOCATION
—
%
Sector
Percent
of
Total
Investments
(a)
—
Information
Technology
.............................
30.1
%
Financials
......................................
14.0
Health
Care
....................................
12.9
Consumer
Discretionary
............................
11.5
Consumer
Staples
................................
7.1
Industrials
......................................
6.7
Communication
Services
............................
6.1
Energy
........................................
4.2
Utilities
........................................
2.7
Materials
......................................
2.6
Real
Estate
.....................................
2.1
TEN
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
Apple,
Inc.
......................................
7.1
%
Microsoft
Corp.
...................................
6.1
NVIDIA
Corp.
....................................
2.7
Amazon.com,
Inc.
.................................
2.4
Alphabet,
Inc.,
Class
C,
NVS
..........................
2.0
Procter
&
Gamble
Co.
(The)
..........................
1.6
Meta
Platforms,
Inc.,
Class
A
..........................
1.4
Tesla,
Inc.
.......................................
1.3
JPMorgan
Chase
&
Co.
.............................
1.3
Broadcom,
Inc.
...................................
1.3
(a)
Excludes
money
market
funds.
Fund
Summary
as
of
July
31,
2023
9
Fund
Summary
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Investment
Objective
The
iShares
U.S.
Small-Cap
Equity
Factor
ETF
(the
“Fund”)
(formerly
the
iShares
MSCI
USA
Small-Cap
Multifactor
ETF)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
small-capitalization
stocks
that
have
favorable
exposure
to
target
style
factors
subject
to
constraints,
as
represented
by
the
STOXX
U.S.
Small-Cap
Equity
Factor
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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
April
28,
2015.
The
first
day
of
secondary
market
trading
was
April
30,
2015.
(a)
Index
performance
through
February
28,
2023
reflects
the
performance
of
the
MSCI
USA
Small
Cap
Diversified
Multiple-Factor
Index.
Index
performance
beginning
on
March
1,
2023
reflects
the
performance
of
the
STOXX
U.S.
Small-Cap
Equity
Factor
Index,
which,
effective
as
of
March
1,
2023,
replaced
the
MSCI
USA
Small
Cap
Diversified
Multiple-Factor
Index
as
the
underlying
index
of
the
fund.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
5
Years
Since
Inception
1
Year
5
Years
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11.23%
7.13%
9.23%
11.23%
41.09%
107.42%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11.34
7.12
9.24
11.34
41.07
107.53
Inde
x
(a)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11.45
7.47
9.59
11.45
43.35
112.96
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,048.30
$
0.76
$
1,000.00
$
1,024.05
$
0.75
0.15%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
To
Shareholders
10
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Portfolio
Management
Commentary
Stocks
of
small-capitalization
companies
with
favorable
exposure
to
five
target
style
factors—value,
quality,
momentum,
low
volatility,
and
small
size—advanced
during
the
reporting
period.
The
information
technology
sector
contributed
the
most
to
the
Index’s
return,
particularly
the
electronic
equipment,
instruments,
and
components
industry.
Smaller
electronic
equipment
companies
benefited
from
the
growing
trend
toward
contract
manufacturing,
by
which
large
consumer
goods
and
services
firms
outsource
production.
Rising
demand
for
electric
vehicles
and
increased
use
of
electrical
components
in
advanced
safety
features
across
all
vehicle
types
increased
revenue
for
electronic
equipment
companies.
The
software
industry
also
contributed
to
performance.
Software
as
a
service
companies
that
provide
applications
and
services
for
businesses
via
a
cloud
computing
infrastructure
grew
amid
rising
demand
for
tools
to
assist
with
a
wide
range
of
needs,
including
fraud
prevention,
inventory
management,
and
sales
trend
analytics.
The
industrials
sector
also
added
to
the
Index’s
return,
led
by
the
trading
companies
and
distributors
industry.
Federal
laws
focused
on
improving
U.S.
infrastructure
by
rebuilding
roads,
bridges,
ports,
and
airports
boosted
the
outlook
for
construction
equipment
rental
companies.
Merger
and
acquisition
activity
related
to
the
shipping
container
business,
continuing
a
trend
of
consolidation
in
recent
years,
further
aided
the
industry.
Manufacturers
in
the
electrical
equipment
industry
benefited
from
government
incentives
to
increase
U.S.
manufacturing,
technology,
and
green
infrastructure
capabilities
with
the
construction
of
microchip
production
plants,
data
centers,
and
renewable
energy
facilities.
The
building
products
industry
also
advanced.
High
mortgage
rates
limited
the
availability
of
previously
owned
homes
on
the
market,
as
homeowners
with
low
mortgage
rates
opted
to
stay
put,
bolstering
strong
demand
for
new
housing
construction.
The
financials
sector
also
contributed
to
the
Index’s
performance.
The
capital
markets
industry
led
the
advance
amid
signs
of
a
modest
increase
in
investment
banking
activities,
including
stock
listings
and
merger
and
acquisition
discussions.
The
highly
successful
stock
market
debut
of
a
prominent
restaurant
chain
late
in
the
reporting
period
raised
optimism
for
an
increase
in
initial
public
offerings,
following
a
sluggish
first
half
of
2023
for
new
stock
issues.
Conversely,
the
healthcare
sector
declined,
particularly
the
healthcare
equipment
and
services
industry.
Ongoing
staffing
shortages
increased
operating
costs,
pressuring
profit
margins
and
leading
to
lower
earnings
growth.
Portfolio
Information
SECTOR
ALLOCATION
—
%
Sector
Percent
of
Total
Investments
(a)
—
Industrials
......................................
18.2
%
Financials
......................................
16.4
Information
Technology
.............................
14.7
Consumer
Discretionary
............................
13.3
Health
Care
....................................
11.5
Real
Estate
.....................................
7.4
Energy
........................................
5.6
Materials
......................................
4.9
Consumer
Staples
................................
3.8
Communication
Services
............................
2.4
Utilities
........................................
1.8
TEN
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
Fair
Isaac
Corp.
...................................
0.7
%
First
Industrial
Realty
Trust,
Inc.
........................
0.7
Jefferies
Financial
Group,
Inc.
.........................
0.6
Builders
FirstSource
,
Inc.
............................
0.6
Jabil,
Inc.
.......................................
0.6
Reliance
Steel
&
Aluminum
Co.
........................
0.6
IDACORP,
Inc.
...................................
0.5
Deckers
Outdoor
Corp.
..............................
0.5
St.
Joe
Co.
(The)
..................................
0.5
Lattice
Semiconductor
Corp.
..........................
0.5
(a)
Excludes
money
market
funds.
Fund
Summary
as
of
July
31,
2023
11
Fund
Summary
iShares
®
U.S.
Tech
Breakthrough
Multisector
ETF
Investment
Objective
The
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
companies
that
could
benefit
from
various
breakthrough
technologies,
including
robotics
and
artificial
intelligence,
cloud
and
data
tech,
cybersecurity,
genomics
and
immunology,
and
financial
technology,
as
represented
by
the
NYSE
®
FactSet
®
U.S.
Tech
Breakthrough
Index
TM
(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
GROWTH
OF
$10,000
INVESTMENT
(SINCE
INCEPTION
AT
NET
ASSET
VALUE)
The
inception
date
of
the
Fund
was
January
8,
2020.
The
first
day
of
secondary
market
trading
was
January
10,
2020.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
28.28%
14.03%
28.28%
59.70%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
28.29
14.04
28.29
59.72
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
28.66
14.40
28.66
61.47
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/23)
Ending
Account
Value
(07/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,283.70
$
1.70
$
1,000.00
$
1,023.31
$
1.51
0.30%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
Fund
Summary
as
of
July
31,
2023
(continued)
2023
iShares
Annual
Report
To
Shareholders
12
iShares
®
U.S.
Tech
Breakthrough
Multisector
ETF
Portfolio
Management
Commentary
Stocks
in
U.S.
companies
targeting
the
development
of
breakthrough
technologies
advanced
considerably
for
the
reporting
period.
Many
stocks,
particularly
in
the
information
technology
sector,
benefited
from
renewed
investor
interest
in
growth-oriented
companies.
Although
growth
stocks
declined
sharply
in
2022
amid
high
inflation
and
rising
interest
rates,
they
rebounded
in
2023,
as
inflation
moderated
and
optimism
increased
that
interest
rates
would
stabilize.
The
widespread
emergence
of
artificial
intelligence
(“AI”)
applications
increased
demand
for
machine-learning
capabilities,
boosting
the
stocks
of
companies
heavily
involved
in
the
burgeoning
technology
across
multiple
sectors
and
industries.
The
information
technology
sector,
which
represented
approximately
62%
of
the
Index
on
average
during
the
reporting
period,
contributed
the
most
to
the
Index’s
return.
AI-related
demand
propelled
the
software
industry.
Makers
of
cloud-oriented
software
systems
benefited
from
the
technology’s
integration
with
existing
product
offerings
and
partnerships
with
key
AI
chip
suppliers,
which
boosted
revenue
throughout
their
business
lines.
Cloud
platforms
also
increased
adoption
of
cybersecurity
protection,
leading
to
higher
billings
and
new
bookings
for
the
software
security
business.
Providers
of
application
software,
including
customer
relationship
management
platforms
and
digital
content
creation
tools,
also
benefited
from
new
AI-powered
offerings
and
related
integration
that
increased
demand
for
their
software.
Within
the
semiconductors
and
semiconductor
equipment
industry,
stocks
rose
sharply
for
companies
producing
chips
that
power
generative
AI
services,
in
addition
to
other
specialized
AI
applications
and
the
data
centers
that
support
AI
functions.
As
data
centers
accelerated
their
integration
of
AI,
chipmakers
reported
rising
revenue
and
significantly
increased
sales
projections.
The
communications
sector
also
contributed
to
the
Index’s
return.
Interactive
media
and
services
stocks
rose,
as
large
global
social
media
platforms
sought
to
contain
costs
and
repurchase
stock
amid
improving
revenue.
AI
tools
helped
social
media
platforms
increase
customer
engagement
and
sales
of
digital
advertisements,
which
boosted
revenue
and
led
to
significantly
increased
sales
projections.
The
financials
sector
also
aided
performance,
driven
by
leading
purveyors
of
credit
cards
and
payment
networks.
Portfolio
Information
SECTOR
ALLOCATION
—
%
Sector
Percent
of
Total
Investments
(a)
—
Information
Technology
.............................
58.4
%
Communication
Services
............................
11.8
Health
Care
....................................
10.5
Financials
......................................
8.5
Consumer
Discretionary
............................
6.3
Real
Estate
.....................................
2.3
Industrials
......................................
2.0
Materials
......................................
0.2
TEN
LARGEST
HOLDINGS
Security
Percent
of
TotaI
Investments
(a)
NVIDIA
Corp.
....................................
4.4
%
Meta
Platforms,
Inc.,
Class
A
..........................
4.3
Apple,
Inc.
......................................
4.0
Amazon.com,
Inc.
.................................
4.0
Alphabet,
Inc.,
Class
A
..............................
3.9
Salesforce,
Inc.
...................................
3.9
Adobe,
Inc.
......................................
3.9
Oracle
Corp.
.....................................
3.7
Microsoft
Corp.
...................................
3.7
Regeneron
Pharmaceuticals,
Inc.
.......................
3.7
(a)
Excludes
money
market
funds.
About
Fund
Performance
13
About
Fund
Performance/Disclosure
of
Expenses
Past
performance
is
not
an
indication
of
future
results.
Financial
markets
have
experienced
extreme
volatility
and
trading
in
many
instruments
has
been
disrupted.
These
circumstances
may
continue
for
an
extended
period
of
time
and
may
continue
to
affect
adversely
the
value
and
liquidity
of
each
Fund’s
investments.
As
a
result,
current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Performance
data
current
to
the
most
recent
month-end
is
available
at
iShares.com
.
Performance
results
assume
reinvestment
of
all
dividends
and
capital
gain
distributions
and
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
The
investment
return
and
principal
value
of
shares
will
vary
with
changes
in
market
conditions.
Shares
may
be
worth
more
or
less
than
their
original
cost
when
they
are
redeemed
or
sold
in
the
market.
Performance
for
certain
funds
may
reflect
a
waiver
of
a
portion
of
investment
advisory
fees.
Without
such
a
waiver,
performance
would
have
been
lower.
Net
asset
value
or
“NAV”
is
the
value
of
one
share
of
a
fund
as
calculated
in
accordance
with
the
standard
formula
for
valuing
mutual
fund
shares.
Beginning
August
10,
2020,
the
price
used
to
calculate
market
return
(“Market
Price”)
is
the
closing
price.
Prior
to
August
10,
2020,
Market Price
was
determined
using
the
midpoint
between
the
highest
bid
and
the
lowest
ask
on
the
primary
stock
exchange
on
which
shares
of
a
fund
are
listed
for
trading,
as
of
the
time
that
such
fund’s
NAV
is
calculated. Since
shares
of
a
fund
may
not
trade
in
the
secondary
market
until
after
the
fund’s
inception,
for
the
period
from
inception
to
the
first
day
of
secondary
market
trading
in
shares
of
the
fund,
the
NAV
of
the
fund
is
used
as
a
proxy
for
the
Market
Price
to
calculate
market
returns.
Market
and
NAV
returns
assume
that
dividends
and
capital
gain
distributions
have
been
reinvested
at
Market
Price
and
NAV,
respectively.
An
index
is
a
statistical
composite
that
tracks
a
specified
financial
market
or
sector.
Unlike
a
fund,
an
index
does
not
actually
hold
a
portfolio
of
securities
and
therefore
does
not
incur
the
expenses
incurred
by
a
fund.
These
expenses
negatively
impact
fund
performance.
Also,
market
returns
do
not
include
brokerage
commissions
that
may
be
payable
on
secondary
market
transactions.
If
brokerage
commissions
were
included,
market
returns
would
be
lower.
Disclosure
of Expenses
Shareholders
of each
Fund
may
incur
the
following
charges: (1)
transactional
expenses,
including
brokerage
commissions
on
purchases
and
sales
of
fund
shares
and
(2)
ongoing
expenses,
including
management
fees
and
other
fund
expenses.
The
expense
examples
shown (which are
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period) are
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in each
Fund and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
funds.
The
expense
examples
provide information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to estimate
the
expenses
a
shareholder paid during
the period
covered
by
this
report,
shareholders
can divide their
account
value
by
$1,000 and
then
multiply
the
result
by
the
number
under
the
heading
entitled
“Expenses
Paid
During
the
Period.”
The
expense
examples also
provide
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on a
fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the ongoing expenses
of
investing
in the
Funds
and
other
funds, compare
the
5%
hypothetical
examples
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
expenses
shown
in
the
expense
examples are
intended
to highlight shareholders’
ongoing
costs
only
and
do
not
reflect
any
transactional
expenses,
such
as
brokerage
commissions
and
other
fees
paid
on
purchases
and
sales
of
fund
shares.
Therefore,
the
hypothetical
examples are
useful
in
comparing
ongoing expenses
only
and
will
not
help
shareholders determine
the
relative
total expenses
of
owning
different
funds. If
these
transactional expenses
were
included, shareholder
expenses would
have
been
higher.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
14
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Aerospace
&
Defense
—
1.0%
AerSale
Corp.
(a)(b)
...................
34,521
$
518,160
BWX
Technologies,
Inc.
..............
55,007
3,795,483
Leonardo
DRS,
Inc.
(a)(b)
...............
107,021
1,786,181
National
Presto
Industries,
Inc.
..........
10,940
856,711
Parsons
Corp.
(b)
....................
27,266
1,347,486
8,304,021
Air
Freight
&
Logistics
—
0.4%
Forward
Air
Corp.
..................
11,889
1,412,889
Hub
Group,
Inc.,
Class
A
(b)
.............
23,449
2,113,458
3,526,347
Automobile
Components
—
1.0%
Dorman
Products,
Inc.
(b)
..............
30,112
2,550,185
Gentex
Corp.
(a)
....................
135,151
4,538,371
Standard
Motor
Products,
Inc.
..........
26,282
1,003,184
8,091,740
Banks
—
7.6%
Amalgamated
Financial
Corp.
..........
34,705
692,712
Bank
First
Corp.
(a)
..................
17,769
1,570,069
Byline
Bancorp,
Inc.
.................
24,409
535,778
Camden
National
Corp.
..............
31,212
1,079,311
Capital
City
Bank
Group,
Inc.
...........
28,785
933,498
Capitol
Federal
Financial,
Inc.
..........
177,138
1,174,425
City
Holding
Co.
...................
31,123
3,078,376
Columbia
Financial,
Inc.
(b)
.............
70,169
1,226,554
Commerce
Bancshares,
Inc.
...........
75,179
3,998,019
Community
Bank
System,
Inc.
..........
57,071
3,072,132
Community
Trust
Bancorp,
Inc.
.........
33,267
1,276,787
CVB
Financial
Corp.
.................
192,315
3,628,984
Equity
Bancshares,
Inc.,
Class
A
........
30,024
815,452
Farmers
National
Banc
Corp.
...........
80,360
1,104,950
First
Bancshares,
Inc.
(The)
............
51,591
1,615,314
First
Financial
Corp.
.................
24,937
952,843
First
Interstate
BancSystem,
Inc.,
Class
A
..
22,087
634,559
German
American
Bancorp,
Inc.
.........
56,545
1,665,816
Great
Southern
Bancorp,
Inc.
...........
20,844
1,153,299
HarborOne
Bancorp,
Inc.
.............
91,313
957,873
Lakeland
Financial
Corp.
..............
28,195
1,563,131
Mid
Penn
Bancorp,
Inc.
...............
28,386
667,071
NBT
Bancorp,
Inc.
..................
85,711
3,188,449
Nicolet
Bankshares,
Inc.
(a)
.............
6,992
584,881
Northfield
Bancorp,
Inc.
..............
85,596
1,042,559
Northwest
Bancshares,
Inc.
............
246,310
3,044,392
Origin
Bancorp,
Inc.
.................
48,577
1,583,610
Park
National
Corp.
.................
8,595
958,514
Peoples
Bancorp,
Inc.
...............
73,398
2,067,622
Prosperity
Bancshares,
Inc.
............
7,851
497,125
SmartFinancial,
Inc.
.................
30,612
768,973
South
Plains
Financial,
Inc.
............
25,529
685,454
Southside
Bancshares,
Inc.
............
61,615
2,046,234
Stellar
Bancorp,
Inc.
.................
95,270
2,368,412
Stock
Yards
Bancorp,
Inc.
.............
58,510
2,797,363
TriCo
Bancshares
..................
53,783
2,010,409
Trustmark
Corp.
...................
15,450
405,717
Univest
Financial
Corp.
...............
62,098
1,210,911
Washington
Trust
Bancorp,
Inc.
.........
36,104
1,157,494
Westamerica
BanCorp
...............
56,488
2,778,645
62,593,717
Biotechnology
—
7.5%
(b)
Alkermes
plc
......................
306,951
8,987,525
Amicus
Therapeutics,
Inc.
.............
34,532
470,326
AnaptysBio,
Inc.
...................
40,918
806,494
Security
Shares
Shares
Value
Biotechnology
(continued)
Anika
Therapeutics,
Inc.
..............
31,296
$
730,136
Apellis
Pharmaceuticals,
Inc.
...........
5,663
145,822
Arcellx,
Inc.
.......................
14,758
505,462
Arcutis
Biotherapeutics,
Inc.
...........
43,903
478,982
ARS
Pharmaceuticals,
Inc.
............
77,035
566,207
Biohaven
Ltd.
.....................
54,627
1,085,985
Biomea
Fusion,
Inc.
.................
47,638
1,059,946
Chinook
Therapeutics,
Inc.
............
72,196
2,828,639
Crinetics
Pharmaceuticals,
Inc.
.........
50,467
958,873
Deciphera
Pharmaceuticals,
Inc.
........
42,324
572,220
Eagle
Pharmaceuticals,
Inc.
(a)
..........
25,448
528,300
Enanta
Pharmaceuticals,
Inc.
...........
42,228
801,065
Exelixis,
Inc.
......................
377,111
7,432,858
Halozyme
Therapeutics,
Inc.
...........
73,359
3,151,503
Ideaya
Biosciences,
Inc.
..............
68,356
1,528,440
Ionis
Pharmaceuticals,
Inc.
............
129,049
5,346,500
Ironwood
Pharmaceuticals,
Inc.,
Class
A
...
286,997
3,182,797
iTeos
Therapeutics,
Inc.
..............
47,696
670,606
Karuna
Therapeutics,
Inc.
.............
1,717
343,005
Kiniksa
Pharmaceuticals
Ltd.,
Class
A
.....
57,871
1,090,290
Mirum
Pharmaceuticals,
Inc.
(a)
..........
51,125
1,316,980
Point
Biopharma
Global,
Inc.
...........
130,576
1,167,349
ProKidney
Corp.,
Class
A
.............
63,600
815,352
PTC
Therapeutics,
Inc.
...............
24,559
990,710
Sage
Therapeutics,
Inc.
(a)
.............
18,717
649,106
Sarepta
Therapeutics,
Inc.
.............
9,311
1,009,219
Syndax
Pharmaceuticals,
Inc.
(a)
.........
84,438
1,800,218
Travere
Therapeutics,
Inc.
.............
112,727
1,937,777
uniQure
NV
.......................
19,067
197,725
Vanda
Pharmaceuticals,
Inc.
(a)
..........
121,681
703,316
Vaxcyte,
Inc.
......................
9,045
434,703
Vir
Biotechnology,
Inc.
...............
113,873
1,603,332
Viridian
Therapeutics,
Inc.
(a)
............
47,038
882,433
Xencor,
Inc.
......................
112,180
2,724,852
Xenon
Pharmaceuticals,
Inc.
...........
67,207
2,481,282
Zymeworks,
Inc.
(a)
..................
57,544
429,278
62,415,613
Building
Products
—
0.3%
AAON,
Inc.
(a)
......................
4,384
461,460
CSW
Industrials,
Inc.
................
11,000
1,986,050
2,447,510
Capital
Markets
—
1.5%
Diamond
Hill
Investment
Group,
Inc.
......
6,282
1,140,246
Freedom
Holding
Corp.
(a)(b)
............
19,527
1,557,473
Houlihan
Lokey,
Inc.,
Class
A
...........
38,707
3,864,894
PJT
Partners,
Inc.,
Class
A
............
49,089
3,893,249
Virtu
Financial,
Inc.,
Class
A
............
103,272
1,916,728
12,372,590
Chemicals
—
1.3%
Ashland,
Inc.
......................
30,152
2,754,687
Balchem
Corp.
....................
5,337
719,107
Hawkins,
Inc.
.....................
17,140
801,295
NewMarket
Corp.
...................
15,078
6,810,733
11,085,822
Commercial
Services
&
Supplies
—
1.2%
Brady
Corp.,
Class
A,
NVS
............
54,407
2,806,313
Casella
Waste
Systems,
Inc.,
Class
A
(b)
....
46,827
3,778,471
Ennis,
Inc.
.......................
53,799
1,158,830
UniFirst
Corp.
.....................
12,662
2,055,043
9,798,657
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
Schedule
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Communications
Equipment
—
1.2%
(b)
Harmonic,
Inc.
.....................
66,874
$
997,760
Lumentum
Holdings,
Inc.
..............
8,508
445,479
NETGEAR,
Inc.
....................
50,448
688,110
NetScout
Systems,
Inc.
...............
147,363
4,118,796
Viavi
Solutions,
Inc.
.................
372,347
4,047,412
10,297,557
Construction
&
Engineering
—
0.8%
Argan,
Inc.
.......................
28,296
1,076,380
MDU
Resources
Group,
Inc.
...........
256,275
5,668,803
6,745,183
Construction
Materials
—
0.3%
Knife
River
Corp.
(b)
..................
63,365
2,754,476
Consumer
Finance
—
0.1%
PRA
Group,
Inc.
(b)
..................
46,890
1,118,795
Consumer
Staples
Distribution
&
Retail
—
2.4%
BJ's
Wholesale
Club
Holdings,
Inc.
(a)(b)
.....
96,141
6,375,110
Casey's
General
Stores,
Inc.
...........
11,979
3,026,614
Grocery
Outlet
Holding
Corp.
(b)
..........
41,898
1,401,488
Ingles
Markets,
Inc.,
Class
A
...........
29,810
2,527,888
SpartanNash
Co.
...................
48,210
1,081,832
Sprouts
Farmers
Market,
Inc.
(a)(b)
........
86,644
3,400,777
Weis
Markets,
Inc.
..................
33,472
2,220,533
20,034,242
Containers
&
Packaging
—
1.8%
AptarGroup,
Inc.
...................
51,369
6,239,279
Graphic
Packaging
Holding
Co.
.........
15,715
380,303
Silgan
Holdings,
Inc.
.................
79,914
3,504,229
Sonoco
Products
Co.
................
85,397
5,007,680
15,131,491
Diversified
Consumer
Services
—
4.0%
Adtalem
Global
Education,
Inc.
(a)(b)
.......
32,805
1,418,488
Graham
Holdings
Co.,
Class
B
..........
7,524
4,414,707
Grand
Canyon
Education,
Inc.
(b)
.........
49,314
5,353,035
H&R
Block,
Inc.
....................
99,565
3,346,380
Laureate
Education,
Inc.
..............
277,132
3,552,832
OneSpaWorld
Holdings
Ltd.
(b)
..........
166,748
2,141,878
Perdoceo
Education
Corp.
(b)
...........
137,274
1,832,608
Service
Corp.
International
............
122,360
8,155,294
Strategic
Education,
Inc.
..............
30,675
2,303,693
Stride,
Inc.
(b)
......................
24,159
923,115
33,442,030
Diversified
Telecommunication
Services
—
1.4%
Anterix,
Inc.
(a)(b)
....................
28,261
793,286
ATN
International,
Inc.
...............
23,466
852,755
Cogent
Communications
Holdings,
Inc.
....
90,156
5,521,153
EchoStar
Corp.,
Class
A
(b)
.............
43,462
844,467
Frontier
Communications
Parent,
Inc.
(b)
....
32,777
596,869
IDT
Corp.,
Class
B
(b)
.................
11,494
272,638
Iridium
Communications,
Inc.
...........
33,420
1,756,221
Radius
Global
Infrastructure,
Inc.,
Class
A
(b)
.
41,533
619,257
11,256,646
Electric
Utilities
—
3.4%
IDACORP,
Inc.
....................
105,017
10,797,848
MGE
Energy,
Inc.
...................
43,606
3,498,946
PNM
Resources,
Inc.
................
169,059
7,577,224
Portland
General
Electric
Co.
...........
123,072
5,866,842
27,740,860
Security
Shares
Shares
Value
Electronic
Equipment,
Instruments
&
Components
—
3.0%
Avnet,
Inc.
.......................
122,296
$
5,931,356
CTS
Corp.
.......................
9,055
404,124
Insight
Enterprises,
Inc.
(a)(b)
............
35,114
5,150,873
National
Instruments
Corp.
............
11,196
660,564
OSI
Systems,
Inc.
(b)
.................
33,179
3,955,932
Plexus
Corp.
(b)
.....................
7,004
689,824
Rogers
Corp.
(b)
....................
25,852
4,358,906
Vishay
Intertechnology,
Inc.
............
119,751
3,370,991
24,522,570
Entertainment
—
2.1%
Atlanta
Braves
Holdings,
Inc.,
Class
A
(a)(b)
...
13,916
658,783
Atlanta
Braves
Holdings,
Inc.,
Class
C,
NVS
(b)
81,983
3,338,348
Madison
Square
Garden
Sports
Corp.
.....
32,175
6,845,231
Marcus
Corp.
(The)
.................
45,289
706,509
World
Wrestling
Entertainment,
Inc.,
Class
A
58,759
6,169,695
17,718,566
Financial
Services
—
0.2%
International
Money
Express,
Inc.
(a)(b)
......
67,924
1,645,798
Food
Products
—
5.7%
Cal-Maine
Foods,
Inc.
................
83,966
3,878,390
Flowers
Foods,
Inc.
.................
417,945
10,327,421
Hostess
Brands,
Inc.,
Class
A
(b)
.........
165,967
3,989,847
J
&
J
Snack
Foods
Corp.
..............
30,277
4,854,009
John
B
Sanfilippo
&
Son,
Inc.
...........
18,453
2,009,716
Lancaster
Colony
Corp.
..............
40,021
7,709,245
Post
Holdings,
Inc.
(b)
.................
37,350
3,185,955
Seaboard
Corp.
....................
506
1,824,130
Seneca
Foods
Corp.,
Class
A
(b)
.........
11,768
453,833
Simply
Good
Foods
Co.
(The)
(b)
.........
15,561
602,366
Tootsie
Roll
Industries,
Inc.
............
33,508
1,168,089
TreeHouse
Foods,
Inc.
(b)
..............
104,786
5,408,005
Utz
Brands,
Inc.,
Class
A
..............
121,339
2,032,428
47,443,434
Gas
Utilities
—
1.3%
Chesapeake
Utilities
Corp.
............
33,536
3,965,297
New
Jersey
Resources
Corp.
...........
8,308
371,368
Northwest
Natural
Holding
Co.
..........
14,097
605,748
ONE
Gas,
Inc.
.....................
48,753
3,857,825
Spire,
Inc.
........................
32,271
2,051,467
10,851,705
Ground
Transportation
—
3.3%
Heartland
Express,
Inc.
(a)
.............
97,396
1,592,425
Landstar
System,
Inc.
................
68,026
13,849,413
Marten
Transport
Ltd.
................
125,847
2,851,693
Schneider
National,
Inc.,
Class
B
........
109,398
3,370,552
Werner
Enterprises,
Inc.
..............
124,896
5,872,610
27,536,693
Health
Care
Equipment
&
Supplies
—
0.8%
Atrion
Corp.
......................
2,223
1,246,236
QuidelOrtho
Corp.
(a)(b)
................
25,921
2,264,458
UFP
Technologies,
Inc.
(b)
..............
5,068
986,562
Varex
Imaging
Corp.
(b)
...............
83,054
1,934,328
6,431,584
Health
Care
Providers
&
Services
—
7.1%
Acadia
Healthcare
Co.,
Inc.
(b)
...........
34,531
2,728,985
Addus
HomeCare
Corp.
(b)
.............
29,467
2,698,293
AMN
Healthcare
Services,
Inc.
(a)(b)
.......
13,680
1,465,812
Chemed
Corp.
.....................
22,387
11,665,642
CorVel
Corp.
(b)
.....................
13,114
2,682,600
Encompass
Health
Corp.
.............
39,106
2,582,169
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
16
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Health
Care
Providers
&
Services
(continued)
Ensign
Group,
Inc.
(The)
..............
72,461
$
7,019,297
HealthEquity,
Inc.
(b)
..................
68,257
4,637,381
National
HealthCare
Corp.
.............
29,158
1,720,905
National
Research
Corp.
..............
30,401
1,304,507
Option
Care
Health,
Inc.
(b)
.............
169,647
5,730,676
Patterson
Cos.,
Inc.
.................
182,488
6,002,030
Pediatrix
Medical
Group,
Inc.
(b)
..........
29,262
401,767
Premier,
Inc.,
Class
A
................
246,869
6,850,615
US
Physical
Therapy,
Inc.
.............
10,305
1,198,162
58,688,841
Health
Care
REITs
—
0.2%
LTC
Properties,
Inc.
.................
28,449
954,749
Omega
Healthcare
Investors,
Inc.
........
31,597
1,007,944
1,962,693
Health
Care
Technology
—
0.5%
Computer
Programs
&
Systems,
Inc.
(b)
.....
31,329
821,446
HealthStream,
Inc.
..................
50,277
1,130,227
NextGen
Healthcare,
Inc.
(b)
............
109,785
1,825,725
3,777,398
Hotels,
Restaurants
&
Leisure
—
0.6%
Accel
Entertainment,
Inc.,
Class
A
(b)
......
50,045
570,513
Papa
John's
International,
Inc.
..........
8,812
728,753
Texas
Roadhouse,
Inc.
...............
10,917
1,217,791
Wendy's
Co.
(The)
..................
104,268
2,240,719
4,757,776
Household
Durables
—
0.3%
iRobot
Corp.
(b)
.....................
54,463
2,178,520
Household
Products
—
0.4%
Reynolds
Consumer
Products,
Inc.
.......
130,412
3,609,804
Industrial
REITs
—
0.3%
Americold
Realty
Trust,
Inc.
............
71,758
2,326,394
Insurance
—
8.0%
AMERISAFE,
Inc.
..................
41,043
2,139,161
Argo
Group
International
Holdings
Ltd.
....
22,837
678,259
Axis
Capital
Holdings
Ltd.
.............
113,125
6,235,450
Donegal
Group,
Inc.,
Class
A
...........
37,947
552,888
Employers
Holdings,
Inc.
..............
54,030
2,087,179
Enstar
Group
Ltd.
(b)
.................
21,686
5,549,014
Hanover
Insurance
Group,
Inc.
(The)
.....
61,634
6,994,226
Horace
Mann
Educators
Corp.
..........
67,278
2,027,086
James
River
Group
Holdings
Ltd.
........
72,973
1,349,271
Mercury
General
Corp.
...............
58,483
1,881,983
Old
Republic
International
Corp.
.........
158,233
4,362,484
ProAssurance
Corp.
.................
94,326
1,584,677
RenaissanceRe
Holdings
Ltd.
..........
34,672
6,475,343
RLI
Corp.
(a)
.......................
43,415
5,791,995
Ryan
Specialty
Holdings,
Inc.,
Class
A
(b)
...
13,472
583,876
Safety
Insurance
Group,
Inc.
...........
30,726
2,212,272
Selective
Insurance
Group,
Inc.
.........
45,277
4,672,133
SiriusPoint
Ltd.
(b)
...................
122,849
1,147,410
Tiptree,
Inc.
......................
45,263
668,534
United
Fire
Group,
Inc.
...............
34,542
830,390
Universal
Insurance
Holdings,
Inc.
.......
25,335
393,452
White
Mountains
Insurance
Group
Ltd.
....
5,342
8,264,181
66,481,264
IT
Services
—
0.1%
Hackett
Group,
Inc.
(The)
.............
50,604
1,176,543
Security
Shares
Shares
Value
Leisure
Products
—
0.2%
Sturm
Ruger
&
Co.,
Inc.
..............
36,518
$
1,933,628
Life
Sciences
Tools
&
Services
—
0.1%
OmniAb,
Inc.
(b)
.....................
103,362
568,491
Marine
Transportation
—
0.1%
Eagle
Bulk
Shipping,
Inc.
.............
21,467
991,561
Media
—
1.0%
Scholastic
Corp.,
NVS
...............
20,373
879,910
TEGNA,
Inc.
......................
441,412
7,459,863
8,339,773
Metals
&
Mining
—
1.6%
Royal
Gold,
Inc.
....................
93,161
11,192,363
Warrior
Met
Coal,
Inc.
................
53,697
2,376,092
13,568,455
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.2%
Dynex
Capital,
Inc.
..................
110,771
1,445,561
Multi-Utilities
—
1.4%
Avista
Corp.
......................
147,360
5,693,990
NorthWestern
Corp.
.................
97,644
5,513,957
11,207,947
Office
REITs
—
0.8%
Easterly
Government
Properties,
Inc.
.....
135,126
1,994,460
Equity
Commonwealth
...............
230,870
4,522,743
6,517,203
Oil,
Gas
&
Consumable
Fuels
—
2.7%
Antero
Midstream
Corp.
..............
394,402
4,709,160
Arch
Resources,
Inc.,
Class
A
..........
9,213
1,183,318
Delek
US
Holdings,
Inc.
..............
17,862
492,813
Dorian
LPG
Ltd.
....................
67,056
1,994,245
Hess
Midstream
LP,
Class
A
...........
113,877
3,551,824
International
Seaways,
Inc.
............
71,273
3,056,899
Kimbell
Royalty
Partners
LP
...........
120,536
1,905,674
Kinetik
Holdings,
Inc.,
Class
A
..........
35,543
1,279,548
Par
Pacific
Holdings,
Inc.
(b)
............
41,727
1,313,566
PBF
Energy,
Inc.,
Class
A
.............
22,505
1,067,637
Plains
GP
Holdings
LP,
Class
A
.........
101,718
1,595,955
Viper
Energy
Partners
LP
.............
16,039
434,978
22,585,617
Paper
&
Forest
Products
—
0.1%
Clearwater
Paper
Corp.
(b)
.............
35,551
1,145,809
Pharmaceuticals
—
3.6%
Amphastar
Pharmaceuticals,
Inc.
(b)
.......
79,960
4,852,772
Collegium
Pharmaceutical,
Inc.
(b)
........
71,567
1,628,865
Corcept
Therapeutics,
Inc.
(b)
...........
108,861
2,773,778
Harmony
Biosciences
Holdings,
Inc.
(a)(b)
....
11,556
408,736
Innoviva,
Inc.
(a)(b)
...................
126,454
1,713,452
Intra-Cellular
Therapies,
Inc.
(b)
..........
25,275
1,563,006
Pacira
BioSciences,
Inc.
(b)
.............
31,709
1,152,622
Perrigo
Co.
plc
....................
133,753
4,900,710
Phibro
Animal
Health
Corp.,
Class
A
......
35,780
518,094
Prestige
Consumer
Healthcare,
Inc.
(b)
.....
103,145
6,726,086
Supernus
Pharmaceuticals,
Inc.
(b)
........
67,383
2,067,984
Tarsus
Pharmaceuticals,
Inc.
(b)
..........
33,295
732,823
Theravance
Biopharma,
Inc.
(a)(b)
.........
103,855
1,027,126
30,066,054
Professional
Services
—
5.8%
Barrett
Business
Services,
Inc.
..........
5,184
470,344
CACI
International,
Inc.,
Class
A
(a)(b)
......
16,632
5,828,518
CBIZ,
Inc.
(b)
.......................
61,759
3,266,433
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
Schedule
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Professional
Services
(continued)
CRA
International,
Inc.
...............
9,175
$
918,326
CSG
Systems
International,
Inc.
.........
31,177
1,608,421
Exponent,
Inc.
.....................
15,162
1,358,212
FTI
Consulting,
Inc.
(b)
................
48,173
8,437,983
Huron
Consulting
Group,
Inc.
(b)
..........
39,777
3,761,711
ICF
International,
Inc.
(a)
...............
16,853
1,981,744
KBR,
Inc.
........................
29,802
1,832,525
Kforce,
Inc.
.......................
20,164
1,279,204
Maximus,
Inc.
.....................
84,537
7,080,819
Science
Applications
International
Corp.
...
55,258
6,705,006
Verra
Mobility
Corp.,
Class
A
(a)(b)
.........
168,932
3,545,883
48,075,129
Real
Estate
Management
&
Development
—
0.3%
FRP
Holdings,
Inc.
(b)
.................
16,017
918,895
RMR
Group,
Inc.
(The),
Class
A
.........
21,934
517,204
Tejon
Ranch
Co.
(b)
..................
46,223
813,987
2,250,086
Residential
REITs
—
0.1%
Elme
Communities
..................
38,523
625,999
Retail
REITs
—
2.1%
Agree
Realty
Corp.
.................
183,152
11,864,586
Getty
Realty
Corp.
..................
73,205
2,365,986
NETSTREIT
Corp.
..................
121,461
2,172,937
Phillips
Edison
&
Co.,
Inc.
.............
21,583
762,096
17,165,605
Software
—
3.2%
A10
Networks,
Inc.
..................
62,675
972,716
Adeia,
Inc.
.......................
57,460
690,669
CommVault
Systems,
Inc.
(b)
............
69,121
5,386,600
Dolby
Laboratories,
Inc.,
Class
A
........
120,766
10,701,075
InterDigital,
Inc.
....................
35,518
3,292,163
Mitek
Systems,
Inc.
(a)(b)
...............
40,332
411,790
Model
N,
Inc.
(b)
....................
20,715
690,224
Progress
Software
Corp.
..............
69,850
4,195,191
26,340,428
Specialty
Retail
—
2.7%
Arko
Corp.
.......................
113,513
946,698
AutoNation,
Inc.
(b)
...................
11,507
1,852,397
Murphy
USA,
Inc.
..................
42,937
13,182,946
ODP
Corp.
(The)
(b)
..................
14,496
723,060
Penske
Automotive
Group,
Inc.
(a)
........
3,606
582,081
PetMed
Express,
Inc.
................
44,757
655,690
Valvoline,
Inc.
.....................
50,075
1,901,348
Winmark
Corp.
....................
6,065
2,204,385
22,048,605
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
Columbia
Sportswear
Co.
.............
5,580
438,644
Trading
Companies
&
Distributors
—
0.9%
McGrath
RentCorp
..................
28,094
2,707,700
MSC
Industrial
Direct
Co.,
Inc.,
Class
A
....
50,600
5,106,552
7,814,252
Water
Utilities
—
1.3%
American
States
Water
Co.
............
25,604
2,263,649
California
Water
Service
Group
.........
90,093
4,776,731
SJW
Group
.......................
46,863
3,301,967
10,342,347
Wireless
Telecommunication
Services
—
0.4%
Shenandoah
Telecommunications
Co.
.....
98,845
1,845,436
Telephone
&
Data
Systems,
Inc.
.........
85,489
685,622
Security
Shares
Shares
Value
Wireless
Telecommunication
Services
(continued)
United
States
Cellular
Corp.
(b)
..........
33,225
$
588,415
3,119,473
Total
Long-Term
Investments
—
99.8%
(Cost:
$771,205,866)
.............................
826,857,547
Short-Term
Securities
Money
Market
Funds
—
3.2%
(c)(d)
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares,
5.42%
(e)
............
23,681,856
23,686,593
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
..................
2,436,774
2,436,774
Total
Short-Term
Securities
—
3.2%
(Cost:
$26,112,832)
..............................
26,123,367
Total
Investments
—
103.0%
(Cost:
$797,318,698
)
.............................
852,980,914
Liabilities
in
Excess
of
Other
Assets
—
(3.0)%
............
(24,694,486)
Net
Assets
—
100.0%
..............................
$
828,286,428
(a)
All
or
a
portion
of
this
security
is
on
loan.
(b)
Non-income
producing
security.
(c)
Affiliate
of
the
Fund.
(d)
Annualized
7-day
yield
as
of
period
end.
(e)
All
or
a
portion
of
this
security
was
purchased
with
the
cash
collateral
from
loaned
securities.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
18
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
$
29,772,890
$
—
$
(6,093,227)
(a)
$
1,183
$
5,747
$
23,686,593
23,681,856
$
768,152
(b)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
1,800,000
636,774
(a)
—
—
—
2,436,774
2,436,774
70,468
1
$
1,183
$
5,747
$
26,123,367
$
838,620
$
1
—
—
(a)
Represents
net
amount
purchased
(sold).
(b)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
Dow
Jones
U.S.
Real
Estate
Index
..............................................
10
09/15/23
$
341
$
3,421
S&P
Midcap
400
E-Mini
Index
.................................................
3
09/15/23
823
38,555
$
41,976
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
41,976
$
—
$
—
$
—
$
41,976
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
July
31,
2023,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
188,773
$
—
$
—
$
—
$
188,773
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
(63,999)
$
—
$
—
$
—
$
(63,999)
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
Schedule
of
Investments
19
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
1,477,405
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
826,857,547
$
—
$
—
$
826,857,547
Short-Term
Securities
Money
Market
Funds
......................................
26,123,367
—
—
26,123,367
$
852,980,914
$
—
$
—
$
852,980,914
Derivative
Financial
Instruments
(a)
Assets
Equity
contracts
...........................................
$
41,976
$
—
$
—
$
41,976
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
U.S.
Equity
Factor
ETF
20
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Aerospace
&
Defense
—
0.5%
General
Dynamics
Corp.
..............
3,195
$
714,338
Lockheed
Martin
Corp.
...............
10,043
4,482,894
Northrop
Grumman
Corp.
.............
4,149
1,846,305
7,043,537
Air
Freight
&
Logistics
—
0.3%
Expeditors
International
of
Washington,
Inc.
.
1,429
181,912
United
Parcel
Service,
Inc.,
Class
B
......
22,150
4,144,929
4,326,841
Automobiles
—
1.9%
Ford
Motor
Co.
....................
212,174
2,802,818
General
Motors
Co.
.................
57,685
2,213,373
Harley-Davidson,
Inc.
................
40,147
1,550,076
Tesla,
Inc.
(a)(b)
.....................
71,918
19,233,031
Thor
Industries,
Inc.
.................
9,453
1,091,727
26,891,025
Banks
—
2.5%
Bank
of
America
Corp.
...............
156,594
5,011,008
Citigroup,
Inc.
.....................
95,512
4,552,102
Fifth
Third
Bancorp
.................
14,768
429,749
JPMorgan
Chase
&
Co.
1
..............
120,837
19,087,413
Popular,
Inc.
......................
49,697
3,605,517
US
Bancorp
......................
27,075
1,074,336
Wells
Fargo
&
Co.
..................
49,634
2,291,105
36,051,230
Beverages
—
1.5%
Coca-Cola
Co.
(The)
................
132,054
8,178,104
PepsiCo,
Inc.
.....................
73,866
13,846,921
22,025,025
Biotechnology
—
2.1%
AbbVie,
Inc.
......................
95,689
14,313,161
Amgen,
Inc.
......................
15,670
3,669,130
Biogen,
Inc.
(b)
.....................
813
219,664
Gilead
Sciences,
Inc.
................
46,580
3,546,601
Moderna,
Inc.
(b)
....................
42,801
5,035,966
Vertex
Pharmaceuticals,
Inc.
(b)
..........
10,987
3,871,160
30,655,682
Broadline
Retail
—
3.1%
Amazon.com,
Inc.
(b)
.................
259,630
34,707,338
eBay,
Inc.
........................
45,548
2,027,342
Etsy,
Inc.
(b)
.......................
48,483
4,928,297
MercadoLibre,
Inc.
(b)
.................
2,439
3,019,604
44,682,581
Building
Products
—
0.5%
Builders
FirstSource,
Inc.
(b)
............
16,472
2,379,051
Carrier
Global
Corp.
.................
14,870
885,509
Lennox
International,
Inc.
.............
782
287,338
Trex
Co.,
Inc.
(a)(b)
...................
4,746
328,138
UFP
Industries,
Inc.
.................
34,037
3,497,642
7,377,678
Capital
Markets
—
5.2%
Affiliated
Managers
Group,
Inc.
.........
17,479
2,423,289
Ameriprise
Financial,
Inc.
.............
14,392
5,014,892
Bank
of
New
York
Mellon
Corp.
(The)
.....
75,188
3,410,528
BlackRock,
Inc.
(c)
...................
4,409
3,257,590
Blackstone,
Inc.,
Class
A
..............
48,419
5,073,827
Charles
Schwab
Corp.
(The)
...........
15,470
1,022,567
Evercore,
Inc.,
Class
A
...............
26,806
3,620,418
Goldman
Sachs
Group,
Inc.
(The)
.......
14,828
5,276,840
Security
Shares
Shares
Value
Capital
Markets
(continued)
Interactive
Brokers
Group,
Inc.,
Class
A
....
60,508
$
5,284,164
Janus
Henderson
Group
plc
...........
114,485
3,360,135
Jefferies
Financial
Group,
Inc.
..........
130,037
4,784,061
LPL
Financial
Holdings,
Inc.
............
3,628
832,118
Morgan
Stanley
....................
53,415
4,890,677
MSCI,
Inc.
.......................
10,163
5,570,137
Nasdaq,
Inc.
......................
33,726
1,702,826
Northern
Trust
Corp.
.................
11,358
910,003
Raymond
James
Financial,
Inc.
.........
44,045
4,848,033
S&P
Global,
Inc.
...................
17,777
7,013,204
State
Street
Corp.
..................
44,591
3,230,172
Stifel
Financial
Corp.
................
21,491
1,365,538
T.
Rowe
Price
Group,
Inc.
.............
1,177
145,077
XP,
Inc.,
Class
A
(a)(b)
.................
67,762
1,830,252
74,866,348
Chemicals
—
1.3%
CF
Industries
Holdings,
Inc.
............
6,467
530,811
Chemours
Co.
(The)
.................
57,870
2,140,033
Dow,
Inc.
........................
21,529
1,215,743
Huntsman
Corp.
...................
7,270
216,428
Linde
plc
........................
23,679
9,250,675
LyondellBasell
Industries
NV,
Class
A
.....
8,048
795,625
Mosaic
Co.
(The)
...................
6,373
259,763
Olin
Corp.
........................
57,641
3,324,733
Sherwin-Williams
Co.
(The)
............
2,036
562,954
18,296,765
Commercial
Services
&
Supplies
—
0.4%
Cintas
Corp.
......................
8,224
4,128,777
Tetra
Tech,
Inc.
....................
8,857
1,498,693
5,627,470
Communications
Equipment
—
0.8%
Arista
Networks,
Inc.
(b)
...............
14,687
2,277,807
Cisco
Systems,
Inc.
.................
103,299
5,375,680
Motorola
Solutions,
Inc.
..............
11,783
3,377,361
11,030,848
Construction
&
Engineering
—
0.2%
EMCOR
Group,
Inc.
.................
16,234
3,490,959
Consumer
Finance
—
1.2%
Ally
Financial,
Inc.
..................
171,368
5,233,579
American
Express
Co.
...............
11,258
1,901,251
Capital
One
Financial
Corp.
............
23,667
2,769,512
Credit
Acceptance
Corp.
(a)(b)
............
1,141
635,081
OneMain
Holdings,
Inc.
...............
82,946
3,772,384
Synchrony
Financial
.................
77,641
2,681,720
16,993,527
Consumer
Staples
Distribution
&
Retail
—
1.9%
Albertsons
Cos.,
Inc.,
Class
A
..........
134,484
2,922,337
Costco
Wholesale
Corp.
..............
11,072
6,207,738
Kroger
Co.
(The)
...................
112,332
5,463,829
Target
Corp.
......................
15,352
2,095,088
Walmart,
Inc.
......................
68,863
11,008,439
27,697,431
Containers
&
Packaging
—
0.1%
Amcor
plc
........................
189,165
1,940,833
Diversified
Consumer
Services
—
0.3%
H&R
Block,
Inc.
....................
103,931
3,493,121
Diversified
Telecommunication
Services
—
1.1%
AT&T,
Inc.
........................
500,297
7,264,312
Liberty
Global
plc,
Class
C,
NVS
(b)
.......
188,010
3,715,078
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Equity
Factor
ETF
Schedule
of
Investments
21
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Diversified
Telecommunication
Services
(continued)
Verizon
Communications,
Inc.
..........
126,286
$
4,303,827
15,283,217
Electric
Utilities
—
1.6%
Constellation
Energy
Corp.
............
14,147
1,367,307
Duke
Energy
Corp.
.................
35,522
3,325,570
Exelon
Corp.
......................
56,296
2,356,551
FirstEnergy
Corp.
..................
20,947
825,102
NextEra
Energy,
Inc.
................
49,724
3,644,769
NRG
Energy,
Inc.
...................
145,358
5,522,150
Southern
Co.
(The)
.................
75,637
5,471,581
22,513,030
Electrical
Equipment
—
1.2%
Acuity
Brands,
Inc.
..................
3,227
533,230
Atkore,
Inc.
(a)(b)
.....................
26,881
4,265,208
Eaton
Corp.
plc
....................
19,801
4,065,541
Emerson
Electric
Co.
................
57,552
5,257,375
nVent
Electric
plc
...................
58,992
3,119,497
17,240,851
Electronic
Equipment,
Instruments
&
Components
—
0.5%
Jabil,
Inc.
........................
35,988
3,982,792
Keysight
Technologies,
Inc.
(b)
...........
21,439
3,453,394
7,436,186
Energy
Equipment
&
Services
—
0.5%
Baker
Hughes
Co.,
Class
A
............
53,849
1,927,256
ChampionX
Corp.
..................
93,063
3,313,043
Schlumberger
NV
..................
39,927
2,329,341
7,569,640
Entertainment
—
0.1%
(b)
Live
Nation
Entertainment,
Inc.
..........
2,988
262,197
Spotify
Technology
SA
...............
2,919
436,128
698,325
Financial
Services
—
2.3%
Fidelity
National
Information
Services,
Inc.
..
25,554
1,542,951
Fiserv,
Inc.
(b)
......................
10,154
1,281,536
Mastercard,
Inc.,
Class
A
..............
25,978
10,242,606
PayPal
Holdings,
Inc.
(b)
...............
12,634
957,910
Visa,
Inc.,
Class
A
..................
69,647
16,557,181
Voya
Financial,
Inc.
.................
29,963
2,225,052
32,807,236
Food
Products
—
0.9%
Archer-Daniels-Midland
Co.
............
24,824
2,109,047
General
Mills,
Inc.
..................
67,243
5,025,742
Hershey
Co.
(The)
..................
15,514
3,588,543
Kraft
Heinz
Co.
(The)
................
4,234
153,186
Mondelez
International,
Inc.,
Class
A
......
28,318
2,099,213
Tyson
Foods,
Inc.,
Class
A
............
8,402
468,160
13,443,891
Ground
Transportation
—
0.4%
Avis
Budget
Group,
Inc.
(b)
.............
15,036
3,312,280
Landstar
System,
Inc.
................
5,608
1,141,733
Union
Pacific
Corp.
.................
3,625
841,073
5,295,086
Health
Care
Equipment
&
Supplies
—
1.8%
Abbott
Laboratories
.................
78,369
8,724,821
Dentsply
Sirona,
Inc.
................
43,816
1,819,240
GE
HealthCare
Technologies,
Inc.
.......
55,904
4,360,512
Hologic,
Inc.
(b)
.....................
59,806
4,749,792
Lantheus
Holdings,
Inc.
(b)
.............
28,126
2,432,618
Security
Shares
Shares
Value
Health
Care
Equipment
&
Supplies
(continued)
Medtronic
plc
.....................
35,264
$
3,094,769
25,181,752
Health
Care
Providers
&
Services
—
3.3%
Cigna
Group
(The)
..................
1,525
450,027
CVS
Health
Corp.
..................
98,013
7,320,591
DaVita,
Inc.
(b)
......................
6,418
654,572
Elevance
Health,
Inc.
................
12,628
5,955,744
Humana,
Inc.
.....................
8,413
3,843,311
Laboratory
Corp.
of
America
Holdings
.....
2,084
445,830
McKesson
Corp.
...................
12,989
5,226,774
Molina
Healthcare,
Inc.
(b)
..............
16,037
4,883,106
Quest
Diagnostics,
Inc.
...............
3,217
434,970
UnitedHealth
Group,
Inc.
..............
35,444
17,947,778
47,162,703
Hotels,
Restaurants
&
Leisure
—
2.4%
Airbnb,
Inc.,
Class
A
(b)
................
32,586
4,959,263
Booking
Holdings,
Inc.
(b)
..............
2,141
6,360,483
Hyatt
Hotels
Corp.,
Class
A
............
2,304
291,111
McDonald's
Corp.
..................
33,027
9,683,517
Starbucks
Corp.
....................
47,220
4,796,135
Wingstop,
Inc.
.....................
18,169
3,062,930
Yum!
Brands,
Inc.
..................
41,696
5,740,288
34,893,727
Household
Durables
—
0.2%
Tempur
Sealy
International,
Inc.
.........
16,065
716,981
Whirlpool
Corp.
....................
11,837
1,707,606
2,424,587
Household
Products
—
1.6%
Procter
&
Gamble
Co.
(The)
...........
143,319
22,400,760
Independent
Power
and
Renewable
Electricity
Producers
—
0.2%
Vistra
Corp.
......................
86,829
2,436,422
Industrial
Conglomerates
—
0.1%
Honeywell
International,
Inc.
...........
7,441
1,444,521
Industrial
REITs
—
0.4%
Prologis,
Inc.
......................
49,687
6,198,453
Insurance
—
2.6%
Aflac,
Inc.
........................
65,845
4,763,227
Allstate
Corp.
(The)
.................
25,838
2,911,426
American
Financial
Group,
Inc.
.........
12,454
1,514,531
American
International
Group,
Inc.
.......
39,451
2,378,106
Everest
Group
Ltd.
..................
2,864
1,032,501
Fidelity
National
Financial,
Inc.,
Class
A
....
83,831
3,283,660
First
American
Financial
Corp.
..........
70,303
4,455,804
Hartford
Financial
Services
Group,
Inc.
(The)
18,304
1,315,691
MetLife,
Inc.
......................
141,010
8,879,400
Principal
Financial
Group,
Inc.
..........
3,286
262,453
Prudential
Financial,
Inc.
..............
39,108
3,773,531
RLI
Corp.
........................
4,671
623,158
Travelers
Cos.,
Inc.
(The)
.............
14,377
2,481,614
37,675,102
Interactive
Media
&
Services
—
3.5%
(b)
Alphabet,
Inc.,
Class
C,
NVS
...........
218,001
29,018,113
Match
Group,
Inc.
..................
15,629
726,905
Meta
Platforms,
Inc.,
Class
A
...........
62,785
20,003,301
49,748,319
IT
Services
—
1.4%
Accenture
plc,
Class
A
...............
30,943
9,788,818
Amdocs
Ltd.
......................
23,203
2,172,729
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Equity
Factor
ETF
22
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
IT
Services
(continued)
Gartner,
Inc.
(b)
.....................
11,462
$
4,052,848
GoDaddy,
Inc.,
Class
A
(b)
..............
3,640
280,608
International
Business
Machines
Corp.
....
12,548
1,809,171
MongoDB,
Inc.,
Class
A
(b)
.............
1,652
699,457
Okta,
Inc.,
Class
A
(b)
.................
8,646
664,531
Wix.com
Ltd.
(b)
.....................
8,709
821,433
20,289,595
Life
Sciences
Tools
&
Services
—
1.7%
Agilent
Technologies,
Inc.
.............
23,800
2,898,126
Danaher
Corp.
....................
21,907
5,587,599
IQVIA
Holdings,
Inc.
(b)
................
5,996
1,341,665
Medpace
Holdings,
Inc.
(b)
.............
7,226
1,829,406
Mettler-Toledo
International,
Inc.
(b)
.......
3,759
4,726,830
Thermo
Fisher
Scientific,
Inc.
...........
14,047
7,707,027
24,090,653
Machinery
—
1.5%
AGCO
Corp.
......................
6,429
855,700
Caterpillar,
Inc.
....................
9,241
2,450,436
Deere
&
Co.
......................
7,591
3,261,093
Dover
Corp.
......................
3,437
501,699
Illinois
Tool
Works,
Inc.
...............
20,502
5,398,587
Otis
Worldwide
Corp.
................
89,226
8,115,997
Parker-Hannifin
Corp.
................
2,751
1,127,937
21,711,449
Media
—
1.5%
Charter
Communications,
Inc.,
Class
A
(b)
...
5,038
2,041,347
Comcast
Corp.,
Class
A
..............
128,932
5,835,462
Fox
Corp.,
Class
A,
NVS
..............
133,340
4,460,223
Interpublic
Group
of
Cos.,
Inc.
(The)
......
125,309
4,289,327
News
Corp.,
Class
A,
NVS
............
140,129
2,777,357
Omnicom
Group,
Inc.
................
28,372
2,400,839
21,804,555
Metals
&
Mining
—
0.9%
Alcoa
Corp.
.......................
20,367
737,082
Commercial
Metals
Co.
...............
8,705
498,100
Nucor
Corp.
......................
19,182
3,301,030
Reliance
Steel
&
Aluminum
Co.
.........
15,961
4,674,338
Southern
Copper
Corp.
...............
13,142
1,149,137
Steel
Dynamics,
Inc.
.................
22,781
2,427,999
12,787,686
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.1%
AGNC
Investment
Corp.
..............
163,852
1,669,652
Multi-Utilities
—
0.9%
Ameren
Corp.
.....................
39,702
3,401,270
DTE
Energy
Co.
...................
39,113
4,470,616
Public
Service
Enterprise
Group,
Inc.
.....
7,620
480,974
Sempra
.........................
2,275
339,021
WEC
Energy
Group,
Inc.
..............
39,965
3,591,255
12,283,136
Oil,
Gas
&
Consumable
Fuels
—
3.7%
Antero
Resources
Corp.
(a)(b)
............
114,055
3,050,971
APA
Corp.
.......................
91,572
3,707,750
Chesapeake
Energy
Corp.
............
3,842
324,034
Chevron
Corp.
.....................
63,314
10,361,969
ConocoPhillips
....................
8,322
979,666
Devon
Energy
Corp.
.................
53,109
2,867,886
EOG
Resources,
Inc.
................
7,866
1,042,481
Exxon
Mobil
Corp.
..................
142,636
15,296,285
Kinder
Morgan,
Inc.
.................
36,243
641,864
Marathon
Oil
Corp.
..................
61,429
1,613,740
Security
Shares
Shares
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Marathon
Petroleum
Corp.
............
15,225
$
2,025,230
Murphy
Oil
Corp.
...................
63,899
2,764,910
Occidental
Petroleum
Corp.
............
12,157
767,471
Ovintiv,
Inc.
.......................
25,310
1,166,538
PDC
Energy,
Inc.
...................
1,794
136,147
Range
Resources
Corp.
..............
152,359
4,788,643
Texas
Pacific
Land
Corp.
..............
251
378,081
Valero
Energy
Corp.
.................
2,752
354,760
52,268,426
Paper
&
Forest
Products
—
0.3%
Louisiana-Pacific
Corp.
...............
49,223
3,747,347
Personal
Care
Products
—
0.5%
elf
Beauty,
Inc.
(b)
...................
25,744
3,004,840
Estee
Lauder
Cos.,
Inc.
(The),
Class
A
....
18,731
3,371,580
6,376,420
Pharmaceuticals
—
4.0%
Bristol-Myers
Squibb
Co.
..............
117,476
7,305,832
Eli
Lilly
&
Co.
.....................
26,780
12,172,849
Johnson
&
Johnson
.................
107,942
18,083,523
Merck
&
Co.,
Inc.
...................
110,214
11,754,323
Pfizer,
Inc.
.......................
225,091
8,116,782
Royalty
Pharma
plc,
Class
A
...........
6,162
193,364
57,626,673
Professional
Services
—
1.0%
Automatic
Data
Processing,
Inc.
.........
9,957
2,461,968
ExlService
Holdings,
Inc.
(b)
............
16,996
2,395,586
Paychex,
Inc.
.....................
37,592
4,716,668
Robert
Half,
Inc.
...................
59,444
4,407,773
13,981,995
Real
Estate
Management
&
Development
—
0.1%
CBRE
Group,
Inc.,
Class
A
(b)
...........
23,673
1,972,198
Residential
REITs
—
0.4%
Equity
Residential
..................
38,327
2,527,283
Mid-America
Apartment
Communities,
Inc.
..
21,667
3,242,683
5,769,966
Retail
REITs
—
0.4%
Brixmor
Property
Group,
Inc.
...........
100,123
2,276,797
Simon
Property
Group,
Inc.
............
24,019
2,992,767
5,269,564
Semiconductors
&
Semiconductor
Equipment
—
7.0%
Advanced
Micro
Devices,
Inc.
(a)(b)
........
11,750
1,344,200
Applied
Materials,
Inc.
...............
30,046
4,554,673
Axcelis
Technologies,
Inc.
(b)
............
22,285
4,467,697
Broadcom,
Inc.
....................
20,417
18,347,737
Enphase
Energy,
Inc.
(b)
...............
10,658
1,618,204
Intel
Corp.
.......................
67,474
2,413,545
KLA
Corp.
........................
9,162
4,708,810
Lam
Research
Corp.
................
4,160
2,988,918
Lattice
Semiconductor
Corp.
(b)
..........
30,571
2,780,127
NVIDIA
Corp.
.....................
81,178
37,933,668
QUALCOMM,
Inc.
..................
54,251
7,170,355
Rambus,
Inc.
(b)
....................
74,253
4,648,980
Texas
Instruments,
Inc.
...............
42,626
7,672,680
100,649,594
Software
—
12.3%
Adobe,
Inc.
(b)
......................
10,225
5,584,588
Atlassian
Corp.,
Class
A
(b)
.............
41,606
7,569,796
Cadence
Design
Systems,
Inc.
(b)
........
26,156
6,120,766
Crowdstrike
Holdings,
Inc.,
Class
A
(b)
......
27,760
4,487,682
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Equity
Factor
ETF
Schedule
of
Investments
23
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Software
(continued)
DocuSign,
Inc.
(b)
...................
69,701
$
3,751,308
Dynatrace,
Inc.
(b)
...................
16,876
922,948
Elastic
NV
(b)
......................
40,283
2,676,805
Fair
Isaac
Corp.
(b)
...................
7,263
6,086,176
Fortinet,
Inc.
(b)
.....................
106,204
8,254,175
HubSpot,
Inc.
(b)
....................
4,064
2,359,355
Intuit,
Inc.
........................
13,405
6,859,339
Manhattan
Associates,
Inc.
(b)
...........
33,583
6,401,591
Microsoft
Corp.
....................
260,279
87,432,922
Nutanix,
Inc.,
Class
A
(b)
...............
98,657
2,979,441
Oracle
Corp.
......................
46,177
5,413,330
Palo
Alto
Networks,
Inc.
(b)
.............
21,559
5,388,888
Qualys,
Inc.
(b)
.....................
22,525
3,126,470
Salesforce,
Inc.
(b)
...................
2,906
653,879
ServiceNow,
Inc.
(b)
..................
3,222
1,878,426
Synopsys,
Inc.
(b)
...................
11,404
5,152,327
Zscaler,
Inc.
(b)
.....................
14,556
2,334,491
175,434,703
Specialized
REITs
—
0.8%
Crown
Castle,
Inc.
..................
5,608
607,290
Lamar
Advertising
Co.,
Class
A
.........
17,442
1,721,526
Public
Storage
.....................
7,472
2,105,236
Weyerhaeuser
Co.
..................
193,331
6,584,854
11,018,906
Specialty
Retail
—
2.9%
AutoNation,
Inc.
(a)(b)
.................
26,997
4,345,977
AutoZone,
Inc.
(b)
...................
258
640,284
Bath
&
Body
Works,
Inc.
..............
75,511
2,798,437
Best
Buy
Co.,
Inc.
..................
27,298
2,267,099
Dick's
Sporting
Goods,
Inc.
............
37,977
5,354,757
Home
Depot,
Inc.
(The)
..............
28,213
9,418,628
Lowe's
Cos.,
Inc.
...................
38,517
9,023,377
Murphy
USA,
Inc.
..................
8,158
2,504,751
Williams-Sonoma,
Inc.
...............
40,303
5,587,608
41,940,918
Technology
Hardware,
Storage
&
Peripherals
—
7.9%
Apple,
Inc.
.......................
514,529
101,079,222
Dell
Technologies,
Inc.,
Class
C
.........
22,584
1,195,145
Hewlett
Packard
Enterprise
Co.
.........
261,321
4,541,759
HP,
Inc.
.........................
108,646
3,566,848
Seagate
Technology
Holdings
plc
........
4,901
311,214
Super
Micro
Computer,
Inc.
(b)
...........
6,134
2,025,876
112,720,064
Textiles,
Apparel
&
Luxury
Goods
—
0.7%
Crocs,
Inc.
(b)
......................
37,850
4,101,047
Deckers
Outdoor
Corp.
(b)
..............
4,451
2,419,964
NIKE,
Inc.,
Class
B
.................
11,151
1,230,959
PVH
Corp.
.......................
14,098
1,263,745
Tapestry,
Inc.
......................
30,824
1,330,056
10,345,771
Tobacco
—
0.6%
Altria
Group,
Inc.
...................
13,304
604,268
Philip
Morris
International,
Inc.
..........
82,502
8,227,099
8,831,367
Trading
Companies
&
Distributors
—
0.6%
Applied
Industrial
Technologies,
Inc.
......
8,479
1,229,370
Ferguson
plc
......................
37,669
6,088,064
Univar
Solutions,
Inc.
(b)
...............
32,577
1,177,333
8,494,767
Security
Shares
Shares
Value
Water
Utilities
—
0.1%
American
Water
Works
Co.,
Inc.
.........
12,408
$
1,829,311
Total
Long-Term
Investments
—
99.8%
(Cost:
$1,254,100,716)
...........................
1,427,259,425
Short-Term
Securities
Money
Market
Funds
—
0.5%
(c)(d)
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares,
5.42%
(e)
............
5,272,759
5,273,814
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
..................
2,245,623
2,245,623
Total
Short-Term
Securities
—
0.5%
(Cost:
$7,518,888)
..............................
7,519,437
Total
Investments
—
100.3%
(Cost:
$1,261,619,604
)
...........................
1,434,778,862
Liabilities
in
Excess
of
Other
Assets
—
(0.3)%
............
(3,768,267)
Net
Assets
—
100.0%
..............................
$
1,431,010,595
(a)
All
or
a
portion
of
this
security
is
on
loan.
(b)
Non-income
producing
security.
(c)
Affiliate
of
the
Fund.
(d)
Annualized
7-day
yield
as
of
period
end.
(e)
All
or
a
portion
of
this
security
was
purchased
with
the
cash
collateral
from
loaned
securities.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Equity
Factor
ETF
24
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
$
11,854,615
$
—
$
(6,594,937)
(a)
$
14,472
$
(336)
$
5,273,814
5,272,759
$
216,260
(b)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
2,280,000
—
(34,377)
(a)
—
—
2,245,623
2,245,623
97,302
1
BlackRock,
Inc.
............
2,686,758
751,865
(479,617)
36,568
262,016
3,257,590
4,409
82,870
—
$
51,040
$
261,680
$
10,777,027
$
396,432
$
1
—
—
(a)
Represents
net
amount
purchased
(sold).
(b)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
S&P
500
E-Mini
Index
.......................................................
13
09/15/23
$
2,999
$
88,733
S&P
Midcap
400
E-Mini
Index
.................................................
2
09/15/23
549
18,545
$
107,278
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
107,278
$
—
$
—
$
—
$
107,278
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
July
31,
2023,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
452,390
$
—
$
—
$
—
$
452,390
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
(141,675)
$
—
$
—
$
—
$
(141,675)
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Equity
Factor
ETF
Schedule
of
Investments
25
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
3,420,099
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
1,427,259,425
$
—
$
—
$
1,427,259,425
Short-Term
Securities
Money
Market
Funds
......................................
7,519,437
—
—
7,519,437
$
1,434,778,862
$
—
$
—
$
1,434,778,862
Derivative
Financial
Instruments
(a)
Assets
Equity
contracts
...........................................
$
107,278
$
—
$
—
$
107,278
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
26
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Aerospace
&
Defense
—
0.5%
AeroVironment,
Inc.
(a)
................
1,670
$
159,084
Axon
Enterprise,
Inc.
(a)
...............
8,611
1,601,043
BWX
Technologies,
Inc.
..............
13,694
944,886
Curtiss-Wright
Corp.
.................
6,108
1,168,827
Hexcel
Corp.
......................
5,137
363,083
Moog,
Inc.,
Class
A
.................
1,203
126,845
4,363,768
Automobile
Components
—
0.4%
Adient
plc
(a)
.......................
12,829
546,002
American
Axle
&
Manufacturing
Holdings,
Inc.
(a)
28,809
272,245
Dana,
Inc.
........................
22,794
432,630
Modine
Manufacturing
Co.
(a)
...........
4,032
151,442
Visteon
Corp.
(a)
....................
9,456
1,457,075
XPEL,
Inc.
(a)(b)
.....................
4,367
354,732
3,214,126
Automobiles
—
0.4%
Harley-Davidson,
Inc.
................
39,088
1,509,188
Thor
Industries,
Inc.
.................
11,308
1,305,961
Winnebago
Industries,
Inc.
............
6,574
452,291
3,267,440
Banks
—
5.8%
1st
Source
Corp.
...................
23,531
1,103,604
Associated
Banc-Corp.
...............
34,599
655,651
Axos
Financial,
Inc.
(a)(c)
...............
22,761
1,069,767
BancFirst
Corp.
....................
16,332
1,631,567
Bancorp,
Inc.
(The)
(a)(c)
...............
19,347
733,251
Bank
of
Hawaii
Corp.
................
15,527
887,057
Bank
of
NT
Butterfield
&
Son
Ltd.
(The)
....
18,289
587,626
Bank
OZK
.......................
6,935
303,268
BankUnited,
Inc.
...................
42,603
1,271,273
BOK
Financial
Corp.
.................
4,342
386,785
Capitol
Federal
Financial,
Inc.
..........
93,222
618,062
City
Holding
Co.
...................
1,743
172,400
Columbia
Financial,
Inc.
(a)(c)
............
20,777
363,182
Comerica,
Inc.
.....................
26,704
1,440,948
Commerce
Bancshares,
Inc.
...........
33,722
1,793,336
Community
Bank
System,
Inc.
..........
1,379
74,232
Community
Trust
Bancorp,
Inc.
.........
9,567
367,181
Cullen/Frost
Bankers,
Inc.
.............
19,011
2,064,214
Customers
Bancorp,
Inc.
(a)
.............
13,497
566,604
CVB
Financial
Corp.
.................
20,831
393,081
Eagle
Bancorp,
Inc.
.................
12,876
356,665
East
West
Bancorp,
Inc.
..............
36,740
2,285,595
First
Bancorp
.....................
4,892
161,827
First
BanCorp
.....................
122,489
1,818,962
First
Citizens
BancShares,
Inc.,
Class
A
....
1,235
1,767,655
First
Financial
Bankshares,
Inc.
.........
10,991
358,197
First
Hawaiian,
Inc.
.................
73,824
1,527,419
First
Horizon
Corp.
..................
18,683
254,649
Fulton
Financial
Corp.
................
35,607
509,180
Hancock
Whitney
Corp.
..............
12,514
550,741
Hilltop
Holdings,
Inc.
.................
33,278
1,029,289
International
Bancshares
Corp.
.........
16,028
795,630
Kearny
Financial
Corp.
...............
22,549
193,696
Metropolitan
Bank
Holding
Corp.
(a)
.......
23,040
1,043,482
NBT
Bancorp,
Inc.
..................
7,109
264,455
New
York
Community
Bancorp,
Inc.
......
104,362
1,447,501
Northfield
Bancorp,
Inc.
..............
7,892
96,125
OFG
Bancorp
.....................
75,427
2,526,050
PacWest
Bancorp
(c)
.................
75,317
700,448
Pathward
Financial,
Inc.
..............
21,310
1,107,268
Security
Shares
Shares
Value
Banks
(continued)
Pinnacle
Financial
Partners,
Inc.
.........
7,684
$
583,216
Popular,
Inc.
......................
56,335
4,087,104
Preferred
Bank
....................
14,503
958,358
ServisFirst
Bancshares,
Inc.
...........
13,892
829,075
SouthState
Corp.
...................
1,407
109,282
Stellar
Bancorp,
Inc.
.................
4,271
106,177
Synovus
Financial
Corp.
..............
8,285
280,861
Texas
Capital
Bancshares,
Inc.
(a)
........
3,535
225,710
Trustmark
Corp.
...................
28,821
756,839
UMB
Financial
Corp.
................
10,637
755,227
Washington
Federal,
Inc.
..............
26,050
808,592
Webster
Financial
Corp.
..............
8,448
399,759
Western
Alliance
Bancorp
.............
17,925
931,204
Wintrust
Financial
Corp.
..............
1,602
135,145
Zions
Bancorp
NA
..................
25,225
964,856
47,209,328
Beverages
—
0.4%
Boston
Beer
Co.,
Inc.
(The),
Class
A,
NVS
(a)
.
1,442
535,616
Celsius
Holdings,
Inc.
(a)(c)
..............
3,725
539,008
Coca-Cola
Consolidated,
Inc.
...........
1,784
1,130,003
Duckhorn
Portfolio,
Inc.
(The)
(a)
.........
74,444
936,506
National
Beverage
Corp.
(a)
.............
3,618
191,211
3,332,344
Biotechnology
—
4.6%
(a)
ACADIA
Pharmaceuticals,
Inc.
..........
32,935
963,019
Agenus,
Inc.
......................
335,377
509,773
Akero
Therapeutics,
Inc.
..............
1,501
65,143
Alkermes
plc
......................
64,746
1,895,763
AnaptysBio,
Inc.
(c)
..................
33,351
657,348
Anavex
Life
Sciences
Corp.
(c)
...........
53,410
440,632
Apellis
Pharmaceuticals,
Inc.
...........
23,311
600,258
Arcus
Biosciences,
Inc.
...............
30,236
601,696
Arrowhead
Pharmaceuticals,
Inc.
........
22,334
770,970
Beam
Therapeutics,
Inc.
(c)
.............
34,430
1,062,854
BioCryst
Pharmaceuticals,
Inc.
(c)
.........
63,189
466,967
Blueprint
Medicines
Corp.
.............
15,048
993,168
Catalyst
Pharmaceuticals,
Inc.
..........
94,063
1,300,891
CRISPR
Therapeutics
AG
(c)
............
1,602
91,843
Cullinan
Oncology,
Inc.
...............
6,914
73,219
Cytokinetics,
Inc.
(c)
..................
21,151
705,386
Denali
Therapeutics,
Inc.
..............
68,720
1,953,710
Dyne
Therapeutics,
Inc.
..............
13,122
159,826
Eagle
Pharmaceuticals,
Inc.
...........
14,060
291,886
Editas
Medicine,
Inc.
................
46,173
405,399
Emergent
BioSolutions,
Inc.
............
12,536
86,248
Enanta
Pharmaceuticals,
Inc.
...........
5,379
102,040
Erasca,
Inc.
......................
76,469
201,878
Exelixis,
Inc.
......................
67,108
1,322,699
FibroGen,
Inc.
.....................
14,415
29,695
Halozyme
Therapeutics,
Inc.
...........
43,524
1,869,791
Insmed,
Inc.
(c)
.....................
8,021
177,184
Intellia
Therapeutics,
Inc.
.............
4,619
195,522
Ionis
Pharmaceuticals,
Inc.
............
36,165
1,498,316
Ironwood
Pharmaceuticals,
Inc.,
Class
A
...
28,857
320,024
Karuna
Therapeutics,
Inc.
.............
5,079
1,014,632
Kinnate
Biopharma,
Inc.
..............
24,957
74,122
Legend
Biotech
Corp.,
ADR
(c)
...........
19,729
1,489,934
Madrigal
Pharmaceuticals,
Inc.
..........
1,365
280,234
MiMedx
Group,
Inc.
.................
89,771
724,452
Natera,
Inc.
.......................
29,812
1,348,099
Precigen,
Inc.
(c)
....................
258,036
358,670
Prothena
Corp.
plc
..................
9,579
659,706
PTC
Therapeutics,
Inc.
...............
4,851
195,689
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Schedule
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Biotechnology
(continued)
REGENXBIO,
Inc.
..................
49,230
$
935,370
Sage
Therapeutics,
Inc.
..............
13,391
464,400
Sana
Biotechnology,
Inc.
(c)
.............
124,047
726,915
Sarepta
Therapeutics,
Inc.
.............
16,336
1,770,659
SpringWorks
Therapeutics,
Inc.
(c)
........
5,433
170,488
Stoke
Therapeutics,
Inc.
..............
14,917
99,049
Sutro
Biopharma,
Inc.
................
38,798
173,427
Travere
Therapeutics,
Inc.
.............
39,188
673,642
Ultragenyx
Pharmaceutical,
Inc.
(c)
........
7,650
329,868
United
Therapeutics
Corp.
.............
9,425
2,287,636
Vanda
Pharmaceuticals,
Inc.
...........
52,542
303,693
Vaxcyte,
Inc.
......................
9,117
438,163
Veracyte,
Inc.
.....................
9,838
270,053
Vericel
Corp.
......................
12,671
455,142
Vir
Biotechnology,
Inc.
...............
64,514
908,357
Xencor,
Inc.
......................
74,064
1,799,015
Xenon
Pharmaceuticals,
Inc.
...........
2,142
79,083
37,843,646
Broadline
Retail
—
0.6%
Big
Lots,
Inc.
......................
12,568
128,822
Dillard's,
Inc.,
Class
A
................
6,049
2,075,049
Global-e
Online
Ltd.
(a)(c)
...............
10,792
486,180
Kohl's
Corp.
......................
17,999
512,072
Macy's,
Inc.
......................
66,767
1,107,664
Qurate
Retail,
Inc.
(a)
.................
272,317
277,763
4,587,550
Building
Products
—
2.2%
Advanced
Drainage
Systems,
Inc.
.......
10,222
1,246,982
Allegion
plc
.......................
10,794
1,261,387
AZEK
Co.,
Inc.
(The),
Class
A
(a)
.........
23,496
733,075
Builders
FirstSource,
Inc.
(a)
............
33,976
4,907,154
Carlisle
Cos.,
Inc.
..................
8,758
2,427,717
CSW
Industrials,
Inc.
................
2,004
361,822
Griffon
Corp.
......................
10,688
445,903
Masonite
International
Corp.
(a)
..........
1,427
149,193
Owens
Corning
....................
8,982
1,257,390
Quanex
Building
Products
Corp.
(c)
........
6,336
178,295
Resideo
Technologies,
Inc.
(a)
...........
11,807
221,027
Simpson
Manufacturing
Co.,
Inc.
........
4,236
669,288
Trex
Co.,
Inc.
(a)
....................
32,521
2,248,502
UFP
Industries,
Inc.
.................
16,955
1,742,296
17,850,031
Capital
Markets
—
3.8%
Affiliated
Managers
Group,
Inc.
.........
14,048
1,947,615
Brightsphere
Investment
Group,
Inc.
......
3,393
72,203
Cohen
&
Steers,
Inc.
................
3,215
206,757
Donnelley
Financial
Solutions,
Inc.
(a)
......
17,854
844,494
Evercore,
Inc.,
Class
A
...............
26,654
3,599,889
Federated
Hermes,
Inc.,
Class
B
........
24,776
838,172
Houlihan
Lokey,
Inc.,
Class
A
...........
30,269
3,022,360
Interactive
Brokers
Group,
Inc.,
Class
A
....
24,641
2,151,898
Invesco
Ltd.
......................
53,328
895,910
Janus
Henderson
Group
plc
...........
64,934
1,905,813
Jefferies
Financial
Group,
Inc.
..........
136,625
5,026,434
Lazard
Ltd.,
Class
A
.................
18,860
661,986
Moelis
&
Co.,
Class
A
................
39,641
1,935,670
Piper
Sandler
Cos.
..................
13,595
1,989,764
StepStone
Group,
Inc.,
Class
A
.........
5,759
161,655
Stifel
Financial
Corp.
................
14,790
939,757
StoneX
Group,
Inc.
(a)
................
6,844
629,716
TPG,
Inc.,
Class
A
..................
40,407
1,189,178
Virtu
Financial,
Inc.,
Class
A
............
8,139
151,060
Security
Shares
Shares
Value
Capital
Markets
(continued)
XP,
Inc.,
Class
A
(a)
..................
91,200
$
2,463,312
30,633,643
Chemicals
—
1.8%
Ashland,
Inc.
......................
8,943
817,032
Avient
Corp.
......................
35,022
1,419,442
Axalta
Coating
Systems
Ltd.
(a)
..........
6,034
193,088
Balchem
Corp.
....................
2,453
330,517
Cabot
Corp.
......................
11,016
782,136
Chemours
Co.
(The)
.................
43,726
1,616,987
Element
Solutions,
Inc.
...............
52,974
1,110,335
Huntsman
Corp.
...................
49,930
1,486,416
Ingevity
Corp.
(a)
....................
10,537
674,579
Innospec,
Inc.
.....................
3,548
380,133
Mativ
Holdings,
Inc.
.................
20,523
323,032
Olin
Corp.
........................
19,250
1,110,340
RPM
International,
Inc.
...............
15,724
1,624,446
Scotts
Miracle-Gro
Co.
(The)
...........
24,471
1,713,949
Trinseo
plc
.......................
41,606
733,098
Tronox
Holdings
plc
.................
9,727
129,272
14,444,802
Commercial
Services
&
Supplies
—
1.1%
ACCO
Brands
Corp.
.................
82,874
504,703
Brady
Corp.,
Class
A,
NVS
............
22,050
1,137,339
Brink's
Co.
(The)
...................
6,350
463,296
Cimpress
plc
(a)
.....................
16,201
1,125,969
Clean
Harbors,
Inc.
(a)(c)
...............
2,529
420,471
CoreCivic,
Inc.
(a)
...................
54,271
526,429
Deluxe
Corp.
......................
17,240
327,388
GEO
Group,
Inc.
(The)
(a)
..............
130,736
976,598
Interface,
Inc.
.....................
18,575
181,478
Matthews
International
Corp.,
Class
A
.....
1,834
84,181
MSA
Safety,
Inc.
...................
1,095
181,770
SP
Plus
Corp.
(a)
....................
2,914
112,043
Steelcase,
Inc.,
Class
A
..............
35,553
304,689
Tetra
Tech,
Inc.
....................
13,734
2,323,930
8,670,284
Communications
Equipment
—
0.6%
ADTRAN
Holdings,
Inc.
..............
18,284
177,903
Calix,
Inc.
(a)
.......................
17,589
793,440
Ciena
Corp.
(a)
.....................
9,563
403,559
Extreme
Networks,
Inc.
(a)
..............
86,128
2,290,143
Lumentum
Holdings,
Inc.
(a)(c)
...........
18,815
985,153
NetScout
Systems,
Inc.
(a)
.............
8,247
230,504
Viavi
Solutions,
Inc.
(a)
................
25,218
274,120
5,154,822
Construction
&
Engineering
—
1.6%
AECOM
.........................
16,131
1,403,397
Ameresco,
Inc.,
Class
A
(a)
.............
5,342
310,958
API
Group
Corp.
(a)(c)
.................
26,195
753,368
Arcosa,
Inc.
......................
8,988
693,694
Argan,
Inc.
.......................
10,169
386,829
Comfort
Systems
USA,
Inc.
............
8,452
1,470,395
Dycom
Industries,
Inc.
(a)(c)
.............
1,119
111,430
EMCOR
Group,
Inc.
.................
19,224
4,133,929
MasTec,
Inc.
(a)
.....................
10,491
1,235,315
MDU
Resources
Group,
Inc.
...........
32,970
729,296
Valmont
Industries,
Inc.
...............
3,979
1,053,440
WillScot
Mobile
Mini
Holdings
Corp.
(a)
.....
23,918
1,146,868
13,428,919
Consumer
Finance
—
1.2%
Bread
Financial
Holdings,
Inc.
..........
4,515
187,688
Credit
Acceptance
Corp.
(a)(c)
............
1,788
995,201
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
28
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Consumer
Finance
(continued)
Enova
International,
Inc.
(a)
.............
17,730
$
976,746
Navient
Corp.
.....................
122,863
2,339,311
Nelnet,
Inc.,
Class
A
.................
1,685
166,276
OneMain
Holdings,
Inc.
...............
32,620
1,483,558
PROG
Holdings,
Inc.
(a)
...............
34,701
1,408,167
SLM
Corp.
.......................
128,440
2,078,159
9,635,106
Consumer
Staples
Distribution
&
Retail
—
1.1%
Albertsons
Cos.,
Inc.,
Class
A
..........
69,537
1,511,039
BJ's
Wholesale
Club
Holdings,
Inc.
(a)
......
27,367
1,814,706
Casey's
General
Stores,
Inc.
...........
485
122,540
Grocery
Outlet
Holding
Corp.
(a)
..........
3,609
120,721
Ingles
Markets,
Inc.,
Class
A
...........
32,448
2,751,590
Rite
Aid
Corp.
(a)(c)
...................
79,751
129,197
Sprouts
Farmers
Market,
Inc.
(a)
..........
43,302
1,699,603
United
Natural
Foods,
Inc.
(a)
............
4,882
101,546
US
Foods
Holding
Corp.
(a)
.............
26,374
1,126,961
9,377,903
Containers
&
Packaging
—
0.7%
Berry
Global
Group,
Inc.
..............
15,097
989,910
Graphic
Packaging
Holding
Co.
.........
89,582
2,167,885
Greif,
Inc.,
Class
A,
NVS
..............
1,796
132,850
O-I
Glass,
Inc.
(a)
....................
11,283
259,058
Sealed
Air
Corp.
...................
8,136
371,164
Silgan
Holdings,
Inc.
.................
11,322
496,470
Sonoco
Products
Co.
................
18,258
1,070,649
5,487,986
Diversified
Consumer
Services
—
1.1%
2U,
Inc.
(a)
........................
26,650
127,387
ADT,
Inc.
........................
70,717
451,175
Coursera,
Inc.
(a)
....................
28,916
453,692
Duolingo,
Inc.,
Class
A
(a)
..............
10,344
1,605,285
Graham
Holdings
Co.,
Class
B
..........
251
147,274
H&R
Block,
Inc.
....................
55,316
1,859,171
Laureate
Education,
Inc.
..............
8,994
115,303
Perdoceo
Education
Corp.
(a)
...........
125,182
1,671,180
Service
Corp.
International
............
29,154
1,943,114
Stride,
Inc.
(a)
......................
15,527
593,287
Udemy,
Inc.
(a)(c)
....................
14,793
174,705
9,141,573
Diversified
Telecommunication
Services
—
0.8%
Bandwidth,
Inc.,
Class
A
(a)
.............
35,913
544,082
Cogent
Communications
Holdings,
Inc.
....
3,592
219,974
EchoStar
Corp.,
Class
A
(a)
.............
74,180
1,441,317
Frontier
Communications
Parent,
Inc.
(a)
....
30,879
562,307
IDT
Corp.,
Class
B
(a)
.................
31,255
741,369
Iridium
Communications,
Inc.
...........
8,267
434,431
Liberty
Latin
America
Ltd.,
Class
A
(a)
......
136,245
1,144,458
Liberty
Latin
America
Ltd.,
Class
C,
NVS
(a)
..
42,661
354,939
Lumen
Technologies,
Inc.
.............
615,191
1,101,192
6,544,069
Electric
Utilities
—
0.8%
Hawaiian
Electric
Industries,
Inc.
........
33,274
1,277,389
IDACORP,
Inc.
....................
42,949
4,416,016
OGE
Energy
Corp.
..................
3,582
129,490
Otter
Tail
Corp.
....................
1,013
82,063
Portland
General
Electric
Co.
...........
14,463
689,451
6,594,409
Electrical
Equipment
—
1.8%
Acuity
Brands,
Inc.
..................
8,774
1,449,816
Array
Technologies,
Inc.
(a)
.............
23,376
445,313
Security
Shares
Shares
Value
Electrical
Equipment
(continued)
Atkore,
Inc.
(a)(c)
.....................
21,628
$
3,431,715
Encore
Wire
Corp.
..................
8,207
1,400,853
EnerSys
.........................
3,975
430,572
nVent
Electric
plc
...................
64,769
3,424,985
Regal
Rexnord
Corp.
................
14,228
2,222,129
Shoals
Technologies
Group,
Inc.,
Class
A
(a)
.
12,825
332,937
Vertiv
Holdings
Co.,
Class
A
...........
58,041
1,509,646
Vicor
Corp.
(a)
......................
1,758
162,210
14,810,176
Electronic
Equipment,
Instruments
&
Components
—
2.4%
Advanced
Energy
Industries,
Inc.
........
5,014
627,653
Arrow
Electronics,
Inc.
(a)(c)
.............
18,694
2,664,643
Belden,
Inc.
(c)
.....................
6,861
663,047
CTS
Corp.
.......................
2,808
125,321
ePlus,
Inc.
(a)
......................
8,750
493,063
Flex
Ltd.
(a)
........................
68,642
1,878,045
Insight
Enterprises,
Inc.
(a)(c)
............
4,863
713,354
Jabil,
Inc.
(c)
.......................
41,342
4,575,319
Knowles
Corp.
(a)(c)
..................
42,097
769,112
Littelfuse,
Inc.
.....................
2,049
624,125
National
Instruments
Corp.
............
2,573
151,807
Novanta,
Inc.
(a)
....................
12,256
2,168,086
OSI
Systems,
Inc.
(a)
.................
1,024
122,092
Sanmina
Corp.
(a)
...................
27,153
1,668,823
TD
SYNNEX
Corp.
..................
4,832
476,967
Vishay
Intertechnology,
Inc.
............
51,915
1,461,407
Vontier
Corp.
......................
12,970
401,162
19,584,026
Energy
Equipment
&
Services
—
1.8%
ChampionX
Corp.
..................
35,517
1,264,405
Expro
Group
Holdings
NV
(a)
............
11,911
264,305
Helmerich
&
Payne,
Inc.
..............
27,515
1,231,847
Nabors
Industries
Ltd.
(a)
..............
9,203
1,127,275
NexTier
Oilfield
Solutions,
Inc.
(a)
.........
31,381
374,061
NOV,
Inc.
........................
81,335
1,633,207
Oceaneering
International,
Inc.
(a)
........
38,800
871,060
Oil
States
International,
Inc.
(a)
...........
17,076
137,291
Patterson-UTI
Energy,
Inc.
............
92,341
1,462,681
Select
Water
Solutions,
Inc.,
Class
A
......
74,707
628,286
Transocean
Ltd.
(a)(c)
.................
286,757
2,523,462
Valaris
Ltd.
(a)
......................
1,602
123,034
Weatherford
International
plc
(a)
..........
40,523
3,367,461
15,008,375
Entertainment
—
0.3%
AMC
Entertainment
Holdings,
Inc.,
Class
A
(a)(c)
59,427
295,352
Endeavor
Group
Holdings,
Inc.,
Class
A
(a)
..
54,875
1,295,050
World
Wrestling
Entertainment,
Inc.,
Class
A
5,606
588,630
2,179,032
Financial
Services
—
1.3%
AvidXchange
Holdings,
Inc.
(a)
...........
40,626
504,169
Banco
Latinoamericano
de
Comercio
Exterior
SA,
Class
E
(a)
...................
5,331
124,319
Compass
Diversified
Holdings
..........
14,183
319,543
Euronet
Worldwide,
Inc.
(a)
.............
8,748
768,687
EVERTEC,
Inc.
....................
7,764
305,358
Federal
Agricultural
Mortgage
Corp.,
Class
C,
NVS
.........................
4,711
757,293
Flywire
Corp.
(a)
....................
17,528
598,406
Jackson
Financial,
Inc.,
Class
A
.........
22,879
755,465
MGIC
Investment
Corp.
..............
36,790
615,865
Mr
Cooper
Group,
Inc.
(a)(c)
.............
47,558
2,756,937
Payoneer
Global,
Inc.
(a)
...............
20,313
108,065
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Schedule
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Financial
Services
(continued)
PennyMac
Financial
Services,
Inc.
.......
3,714
$
279,404
Radian
Group,
Inc.
..................
16,991
457,568
Remitly
Global,
Inc.
(a)(c)
...............
8,264
159,330
Rocket
Cos.,
Inc.,
Class
A
(a)
............
30,335
331,561
StoneCo
Ltd.,
Class
A
(a)
..............
11,265
163,230
Walker
&
Dunlop,
Inc.
................
7,981
726,111
WEX,
Inc.
(a)
.......................
5,053
956,785
10,688,096
Food
Products
—
0.5%
Adecoagro
SA
(c)
....................
74,751
829,736
Darling
Ingredients,
Inc.
(a)
.............
12,722
880,998
Flowers
Foods,
Inc.
.................
26,937
665,613
Hain
Celestial
Group,
Inc.
(The)
(a)
........
19,707
249,688
John
B
Sanfilippo
&
Son,
Inc.
...........
13,227
1,440,553
Lancaster
Colony
Corp.
..............
1,283
247,144
Tootsie
Roll
Industries,
Inc.
............
3,023
105,382
4,419,114
Gas
Utilities
—
0.4%
National
Fuel
Gas
Co.
...............
7,774
412,877
New
Jersey
Resources
Corp.
...........
2,598
116,131
Northwest
Natural
Holding
Co.
..........
1,891
81,256
ONE
Gas,
Inc.
.....................
17,029
1,347,505
Southwest
Gas
Holdings,
Inc.
..........
1,446
95,349
Spire,
Inc.
........................
17,252
1,096,710
3,149,828
Ground
Transportation
—
1.4%
ArcBest
Corp.
.....................
12,188
1,417,708
Avis
Budget
Group,
Inc.
(a)(c)
............
6,390
1,407,653
Hertz
Global
Holdings,
Inc.
(a)
...........
16,426
276,778
Knight-Swift
Transportation
Holdings,
Inc.
..
6,778
411,764
Landstar
System,
Inc.
................
8,384
1,706,899
Lyft,
Inc.,
Class
A
(a)
..................
66,178
841,122
Marten
Transport
Ltd.
................
4,548
103,058
Ryder
System,
Inc.
..................
16,640
1,699,776
Saia,
Inc.
(a)
.......................
4,069
1,721,757
Schneider
National,
Inc.,
Class
B
........
45,798
1,411,036
XPO,
Inc.
(a)(c)
......................
11,217
776,665
11,774,216
Health
Care
Equipment
&
Supplies
—
2.5%
AtriCure,
Inc.
(a)
....................
3,225
178,504
Atrion
Corp.
......................
453
253,956
Axonics,
Inc.
(a)
.....................
14,867
897,521
Cerus
Corp.
(a)
.....................
200,000
614,000
CONMED
Corp.
....................
8,849
1,071,171
Embecta
Corp.
....................
6,573
140,268
Envista
Holdings
Corp.
(a)
..............
26,218
902,161
Establishment
Labs
Holdings,
Inc.
(a)
......
18,292
1,317,207
Haemonetics
Corp.
(a)(c)
...............
10,271
947,397
ICU
Medical,
Inc.
(a)(c)
.................
2,818
502,111
Inari
Medical,
Inc.
(a)
.................
20,403
1,164,399
Inmode
Ltd.
(a)
.....................
32,904
1,411,911
Inogen,
Inc.
(a)
.....................
6,801
55,564
Inspire
Medical
Systems,
Inc.
(a)
.........
9,783
2,815,645
Integer
Holdings
Corp.
(a)
..............
3,330
307,958
iRhythm
Technologies,
Inc.
(a)
...........
5,470
574,678
Lantheus
Holdings,
Inc.
(a)
.............
11,221
970,504
LivaNova
plc
(a)
.....................
19,590
1,145,036
Nevro
Corp.
(a)
.....................
5,511
137,720
Orthofix
Medical,
Inc.
(a)
...............
18,450
363,281
Paragon
28,
Inc.
(a)
..................
38,087
672,997
Penumbra,
Inc.
(a)(c)
..................
2,796
848,195
QuidelOrtho
Corp.
(a)
.................
9,156
799,868
Security
Shares
Shares
Value
Health
Care
Equipment
&
Supplies
(continued)
Shockwave
Medical,
Inc.
(a)
.............
5,975
$
1,557,085
STAAR
Surgical
Co.
(a)
................
12,219
669,235
20,318,372
Health
Care
Providers
&
Services
—
2.0%
Acadia
Healthcare
Co.,
Inc.
(a)
...........
10,695
845,226
Accolade,
Inc.
(a)(c)
...................
20,814
312,626
Addus
HomeCare
Corp.
(a)
.............
1,314
120,323
Alignment
Healthcare,
Inc.
(a)
...........
26,210
162,764
Amedisys,
Inc.
(a)
...................
5,066
460,195
AMN
Healthcare
Services,
Inc.
(a)
.........
13,238
1,418,452
Brookdale
Senior
Living,
Inc.
(a)
..........
92,018
323,903
Chemed
Corp.
.....................
6,691
3,486,613
Community
Health
Systems,
Inc.
(a)
.......
19,793
86,891
Encompass
Health
Corp.
.............
6,754
445,967
Ensign
Group,
Inc.
(The)
..............
9,293
900,213
Guardant
Health,
Inc.
(a)
...............
42,806
1,670,290
HealthEquity,
Inc.
(a)
..................
1,185
80,509
Joint
Corp.
(The)
(a)
..................
28,646
386,721
ModivCare,
Inc.
(a)
...................
5,615
245,600
National
Research
Corp.
..............
21,533
923,981
Option
Care
Health,
Inc.
(a)
.............
33,327
1,125,786
Owens
&
Minor,
Inc.
(a)
................
28,071
540,086
Patterson
Cos.,
Inc.
.................
12,583
413,855
Select
Medical
Holdings
Corp.
..........
33,863
1,016,229
Tenet
Healthcare
Corp.
(a)
..............
19,005
1,420,244
16,386,474
Health
Care
REITs
—
0.2%
Medical
Properties
Trust,
Inc.
...........
48,029
484,613
National
Health
Investors,
Inc.
..........
5,557
305,135
Omega
Healthcare
Investors,
Inc.
........
22,534
718,834
1,508,582
Health
Care
Technology
—
0.7%
(a)
Doximity,
Inc.,
Class
A
(c)
..............
34,246
1,223,609
Evolent
Health,
Inc.,
Class
A
...........
13,311
404,521
Health
Catalyst,
Inc.
.................
12,264
172,064
Schrodinger,
Inc.
...................
2,061
107,811
Teladoc
Health,
Inc.
(c)
................
99,423
2,959,823
Veradigm,
Inc.
.....................
86,705
1,172,252
6,040,080
Hotel
&
Resort
REITs
—
0.3%
Hersha
Hospitality
Trust,
Class
A
........
11,933
74,701
Park
Hotels
&
Resorts,
Inc.
............
35,103
478,454
Pebblebrook
Hotel
Trust
(c)
.............
5,789
89,440
RLJ
Lodging
Trust
..................
21,743
223,953
Ryman
Hospitality
Properties,
Inc.
.......
1,121
106,820
Service
Properties
Trust
..............
79,995
679,157
Sunstone
Hotel
Investors,
Inc.
..........
13,979
142,446
Xenia
Hotels
&
Resorts,
Inc.
...........
31,171
395,872
2,190,843
Hotels,
Restaurants
&
Leisure
—
2.6%
Arcos
Dorados
Holdings,
Inc.,
Class
A
.....
25,415
287,189
Bloomin'
Brands,
Inc.
................
34,934
938,677
Boyd
Gaming
Corp.
.................
1,861
127,144
Brinker
International,
Inc.
(a)
............
14,448
567,517
Cheesecake
Factory,
Inc.
(The)
.........
2,530
93,053
Churchill
Downs,
Inc.
................
6,528
756,269
Dine
Brands
Global,
Inc.
..............
10,790
650,853
Everi
Holdings,
Inc.
(a)
................
46,475
689,689
International
Game
Technology
plc
.......
61,990
2,097,122
Jack
in
the
Box,
Inc.
.................
18,098
1,799,122
Light
&
Wonder,
Inc.,
Class
A
(a)
..........
17,605
1,237,632
MakeMyTrip
Ltd.
(a)(c)
.................
15,259
439,001
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
30
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Hotels,
Restaurants
&
Leisure
(continued)
Marriott
Vacations
Worldwide
Corp.
.......
10,759
$
1,382,639
Papa
John's
International,
Inc.
..........
9,581
792,349
Penn
Entertainment,
Inc.
(a)(c)
...........
2,861
75,216
Planet
Fitness,
Inc.,
Class
A
(a)
..........
14,653
989,664
PlayAGS,
Inc.
(a)
....................
58,933
390,136
SeaWorld
Entertainment,
Inc.
(a)(c)
........
27,289
1,510,992
Six
Flags
Entertainment
Corp.
(a)
.........
21,274
508,449
Sportradar
Holding
AG,
Class
A
(a)
........
6,447
94,964
Texas
Roadhouse,
Inc.
...............
3,537
394,552
Travel
+
Leisure
Co.
.................
29,144
1,187,035
Wendy's
Co.
(The)
..................
64,823
1,393,046
Wingstop,
Inc.
.....................
10,687
1,801,614
Wyndham
Hotels
&
Resorts,
Inc.
........
12,425
968,156
21,172,080
Household
Durables
—
1.1%
Cavco
Industries,
Inc.
(a)
...............
2,915
861,820
GoPro,
Inc.,
Class
A
(a)
................
140,799
575,868
Helen
of
Troy
Ltd.
(a)(c)
................
4,326
611,264
Hovnanian
Enterprises,
Inc.,
Class
A
(a)(c)
...
840
89,561
Lovesac
Co.
(The)
(a)
.................
38,241
1,119,696
Skyline
Champion
Corp.
(a)(c)
............
15,038
1,047,547
Sonos,
Inc.
(a)
......................
33,932
581,594
Taylor
Morrison
Home
Corp.
(a)
..........
4,002
193,777
Tempur
Sealy
International,
Inc.
.........
47,536
2,121,532
Toll
Brothers,
Inc.
...................
2,629
211,188
TopBuild
Corp.
(a)
...................
5,724
1,567,975
Tupperware
Brands
Corp.
(a)(c)
...........
78,600
335,622
9,317,444
Household
Products
—
0.3%
Central
Garden
&
Pet
Co.,
Class
A,
NVS
(a)
..
13,322
509,167
Energizer
Holdings,
Inc.
..............
3,479
124,200
Reynolds
Consumer
Products,
Inc.
.......
12,546
347,273
Spectrum
Brands
Holdings,
Inc.
.........
15,791
1,238,173
WD-40
Co.
.......................
1,236
283,662
2,502,475
Independent
Power
and
Renewable
Electricity
Producers
—
0.4%
Atlantica
Sustainable
Infrastructure
plc
....
62,827
1,515,387
Clearway
Energy,
Inc.,
Class
A
..........
58,074
1,432,686
2,948,073
Industrial
REITs
—
1.0%
EastGroup
Properties,
Inc.
............
5,161
914,426
First
Industrial
Realty
Trust,
Inc.
.........
105,351
5,446,647
Industrial
Logistics
Properties
Trust
.......
223,734
948,632
LXP
Industrial
Trust
.................
71,655
721,566
8,031,271
Insurance
—
3.5%
American
Equity
Investment
Life
Holding
Co.
35,104
1,884,032
AMERISAFE,
Inc.
..................
7,586
395,382
Assurant,
Inc.
.....................
9,429
1,268,295
Assured
Guaranty
Ltd.
...............
28,046
1,676,590
Axis
Capital
Holdings
Ltd.
.............
1,451
79,979
CNO
Financial
Group,
Inc.
.............
40,651
1,045,544
Employers
Holdings,
Inc.
..............
33,995
1,313,227
First
American
Financial
Corp.
..........
25,574
1,620,880
Genworth
Financial,
Inc.,
Class
A
(a)
.......
179,523
1,052,005
Hanover
Insurance
Group,
Inc.
(The)
.....
11,213
1,272,451
Horace
Mann
Educators
Corp.
..........
979
29,497
Kinsale
Capital
Group,
Inc.
............
4,102
1,528,528
Lincoln
National
Corp.
...............
23,742
665,726
MBIA,
Inc.
(a)
......................
28,386
248,094
Mercury
General
Corp.
...............
12,800
411,904
National
Western
Life
Group,
Inc.,
Class
A
..
3,202
1,350,187
Security
Shares
Shares
Value
Insurance
(continued)
Old
Republic
International
Corp.
.........
107,271
$
2,957,461
Oscar
Health,
Inc.,
Class
A
(a)
...........
19,711
148,227
Palomar
Holdings,
Inc.
(a)
..............
3,476
210,507
Primerica,
Inc.
.....................
11,568
2,460,514
RenaissanceRe
Holdings
Ltd.
..........
12,182
2,275,110
RLI
Corp.
........................
1,859
248,009
Ryan
Specialty
Holdings,
Inc.,
Class
A
(a)
...
21,017
910,877
SiriusPoint
Ltd.
(a)
...................
23,016
214,969
Universal
Insurance
Holdings,
Inc.
.......
34,123
529,930
Unum
Group
......................
25,129
1,221,521
White
Mountains
Insurance
Group
Ltd.
....
797
1,232,975
28,252,421
Interactive
Media
&
Services
—
0.7%
Angi,
Inc.,
Class
A
(a)
.................
116,217
449,760
Bumble,
Inc.,
Class
A
(a)
...............
18,357
339,972
Cargurus,
Inc.,
Class
A
(a)
..............
18,948
429,362
Cars.com,
Inc.
(a)
....................
51,258
1,169,195
IAC,
Inc.
(a)(c)
......................
5,417
377,023
Liberty
TripAdvisor
Holdings,
Inc.,
Class
A
(a)
.
195,856
149,046
QuinStreet,
Inc.
(a)
...................
12,355
109,712
Shutterstock,
Inc.
...................
25,319
1,302,663
Yelp,
Inc.
(a)
.......................
9,629
433,786
ZipRecruiter,
Inc.,
Class
A
(a)(c)
...........
50,012
926,222
5,686,741
IT
Services
—
0.7%
(a)
BigCommerce
Holdings,
Inc.
...........
9,084
98,198
DigitalOcean
Holdings,
Inc.
............
22,421
1,110,288
DXC
Technology
Co.
................
21,473
593,728
Kyndryl
Holdings,
Inc.
................
22,024
300,848
Perficient,
Inc.
(c)
....................
6,868
438,110
Rackspace
Technology,
Inc.
............
52,832
122,570
Squarespace,
Inc.,
Class
A
............
9,638
319,403
Wix.com
Ltd.
......................
25,531
2,408,084
5,391,229
Leisure
Products
—
0.9%
Acushnet
Holdings
Corp.
..............
15,946
950,860
Brunswick
Corp.
...................
11,036
952,517
Mattel,
Inc.
(a)(c)
.....................
59,205
1,261,067
Polaris,
Inc.
.......................
10,339
1,404,450
Topgolf
Callaway
Brands
Corp.
(a)(c)
.......
25,667
512,570
Vista
Outdoor,
Inc.
(a)
.................
43,604
1,321,201
YETI
Holdings,
Inc.
(a)
................
24,334
1,036,628
7,439,293
Life
Sciences
Tools
&
Services
—
1.0%
AbCellera
Biologics,
Inc.
(a)(c)
............
14,478
111,915
Adaptive
Biotechnologies
Corp.
(a)
........
12,605
106,386
Azenta,
Inc.
(a)
.....................
9,971
468,438
Bruker
Corp.
......................
24,896
1,710,853
Cytek
Biosciences,
Inc.
(a)(c)
.............
39,382
352,863
Medpace
Holdings,
Inc.
(a)
.............
12,253
3,102,092
Repligen
Corp.
(a)(c)
..................
9,330
1,600,655
Sotera
Health
Co.
(a)
.................
4,998
94,862
Syneos
Health,
Inc.,
Class
A
(a)
..........
6,125
259,761
7,807,825
Machinery
—
4.1%
AGCO
Corp.
......................
21,044
2,800,956
Alamo
Group,
Inc.
..................
1,817
352,062
Albany
International
Corp.,
Class
A
.......
1,267
121,987
Allison
Transmission
Holdings,
Inc.
.......
46,541
2,731,491
Chart
Industries,
Inc.
(a)
...............
4,408
802,961
Crane
NXT
Co.
....................
14,902
881,453
Donaldson
Co.,
Inc.
.................
23,133
1,453,446
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Schedule
of
Investments
31
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Machinery
(continued)
Federal
Signal
Corp.
................
2,226
$
135,986
Graco,
Inc.
.......................
33,256
2,638,199
Hillenbrand,
Inc.
...................
26,851
1,394,641
ITT,
Inc.
.........................
25,076
2,497,570
John
Bean
Technologies
Corp.
..........
806
99,630
Kadant,
Inc.
......................
5,388
1,200,716
Lincoln
Electric
Holdings,
Inc.
..........
2,502
502,176
Manitowoc
Co.,
Inc.
(The)
(a)(c)
...........
18,920
342,830
Middleby
Corp.
(The)
(a)
...............
6,004
911,707
Mueller
Industries,
Inc.
...............
24,148
1,957,437
Nordson
Corp.
.....................
7,478
1,881,540
Shyft
Group,
Inc.
(The)
...............
14,892
214,892
SPX
Technologies,
Inc.
(a)
..............
17,797
1,505,804
Terex
Corp.
.......................
26,572
1,557,916
Timken
Co.
(The)
...................
24,274
2,254,084
Toro
Co.
(The)
.....................
32,357
3,289,089
Trinity
Industries,
Inc.
................
21,198
555,812
Wabash
National
Corp.
...............
32,441
768,203
Watts
Water
Technologies,
Inc.,
Class
A
....
4,251
792,939
33,645,527
Marine
Transportation
—
0.3%
Matson,
Inc.
......................
13,041
1,218,812
ZIM
Integrated
Shipping
Services
Ltd.
(c)
....
83,845
1,269,413
2,488,225
Media
—
0.6%
AMC
Networks,
Inc.,
Class
A
(a)
..........
29,812
376,227
Clear
Channel
Outdoor
Holdings,
Inc.
(a)
....
73,413
132,143
DISH
Network
Corp.,
Class
A
(a)
.........
30,594
242,610
John
Wiley
&
Sons,
Inc.,
Class
A
........
12,479
427,156
Magnite,
Inc.
(a)
.....................
18,731
283,400
New
York
Times
Co.
(The),
Class
A
.......
21,627
881,517
Nexstar
Media
Group,
Inc.
.............
4,408
823,062
Scholastic
Corp.,
NVS
...............
4,434
191,505
Sinclair,
Inc.,
Class
A
................
17,900
248,989
TechTarget,
Inc.
(a)
...................
24,526
796,605
TEGNA,
Inc.
......................
55,156
932,136
5,335,350
Metals
&
Mining
—
1.9%
Alcoa
Corp.
.......................
40,423
1,462,908
Alpha
Metallurgical
Resources,
Inc.
......
7,000
1,212,540
Arconic
Corp.
(a)
....................
3,463
103,509
ATI,
Inc.
(a)
........................
23,566
1,123,627
Cleveland-Cliffs,
Inc.
(a)
...............
4,744
83,732
Commercial
Metals
Co.
...............
11,213
641,608
Hecla
Mining
Co.
...................
34,722
199,999
Kaiser
Aluminum
Corp.
...............
2,406
195,367
Materion
Corp.
....................
10,267
1,223,210
MP
Materials
Corp.,
Class
A
(a)(c)
.........
26,159
623,892
Nexa
Resources
SA
(c)
................
52,264
260,797
Reliance
Steel
&
Aluminum
Co.
.........
15,432
4,519,416
Royal
Gold,
Inc.
....................
9,425
1,132,320
Schnitzer
Steel
Industries,
Inc.,
Class
A
....
15,783
571,502
United
States
Steel
Corp.
.............
26,594
678,147
Warrior
Met
Coal,
Inc.
................
7,362
325,769
Worthington
Industries,
Inc.
............
19,192
1,432,107
15,790,450
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.8%
AGNC
Investment
Corp.
..............
165,138
1,682,756
ARMOUR
Residential
REIT,
Inc.
.........
15,723
80,344
BrightSpire
Capital,
Inc.,
Class
A
........
49,698
365,777
Chimera
Investment
Corp.
.............
179,977
1,130,256
Security
Shares
Shares
Value
Mortgage
Real
Estate
Investment
Trusts
(REITs)
(continued)
Hannon
Armstrong
Sustainable
Infrastructure
Capital,
Inc.
....................
16,854
$
440,058
Invesco
Mortgage
Capital,
Inc.
..........
39,169
470,420
KKR
Real
Estate
Finance
Trust,
Inc.
......
33,176
413,373
Ladder
Capital
Corp.,
Class
A
..........
39,902
438,523
MFA
Financial,
Inc.
..................
82,482
928,747
Starwood
Property
Trust,
Inc.
...........
28,897
599,324
6,549,578
Multi-Utilities
—
0.0%
Black
Hills
Corp.
...................
1,403
84,643
Office
REITs
—
1.7%
Brandywine
Realty
Trust
..............
94,408
476,760
Douglas
Emmett,
Inc.
................
76,984
1,131,665
Equity
Commonwealth
...............
66,886
1,310,297
Highwoods
Properties,
Inc.
............
55,128
1,393,085
Kilroy
Realty
Corp.
..................
9,956
355,429
Office
Properties
Income
Trust
..........
119,808
922,522
Paramount
Group,
Inc.
...............
234,735
1,230,011
Piedmont
Office
Realty
Trust,
Inc.,
Class
A
..
59,451
442,315
SL
Green
Realty
Corp.
...............
68,817
2,595,089
Vornado
Realty
Trust
................
161,699
3,634,994
13,492,167
Oil,
Gas
&
Consumable
Fuels
—
3.7%
Antero
Midstream
Corp.
..............
240,631
2,873,134
Antero
Resources
Corp.
(a)
.............
68,083
1,821,220
APA
Corp.
.......................
94,083
3,809,421
Arch
Resources,
Inc.,
Class
A
..........
1,847
237,229
California
Resources
Corp.
............
16,261
867,524
Chesapeake
Energy
Corp.
............
22,317
1,882,216
Chord
Energy
Corp.
.................
2,061
323,247
CNX
Resources
Corp.
(a)(c)
.............
34,766
709,227
CONSOL
Energy,
Inc.
................
7,468
556,515
CVR
Energy,
Inc.
...................
11,758
431,989
Denbury,
Inc.
(a)
....................
8,196
720,510
DT
Midstream,
Inc.
..................
27,677
1,481,273
Equitrans
Midstream
Corp.
............
189,222
1,962,232
Kosmos
Energy
Ltd.
(a)
................
121,264
860,974
Murphy
Oil
Corp.
...................
56,043
2,424,981
Ovintiv,
Inc.
.......................
54,000
2,488,860
PBF
Energy,
Inc.,
Class
A
.............
7,118
337,678
PDC
Energy,
Inc.
...................
4,279
324,733
Permian
Resources
Corp.,
Class
A
.......
22,677
265,094
Plains
GP
Holdings
LP,
Class
A
.........
10,676
167,507
Range
Resources
Corp.
..............
56,405
1,772,809
SFL
Corp.
Ltd.
.....................
60,202
593,592
SM
Energy
Co.
....................
14,548
527,947
Southwestern
Energy
Co.
(a)
............
14,371
93,124
Talos
Energy,
Inc.
(a)
.................
11,780
188,480
Targa
Resources
Corp.
...............
30,588
2,507,910
W&T
Offshore,
Inc.
(a)(c)
...............
47,580
208,400
30,437,826
Paper
&
Forest
Products
—
0.5%
Louisiana-Pacific
Corp.
...............
39,816
3,031,192
Mercer
International,
Inc.
..............
10,242
91,154
Sylvamo
Corp.
....................
15,950
782,666
3,905,012
Passenger
Airlines
—
0.1%
Joby
Aviation,
Inc.,
Class
A
(a)(c)
..........
84,155
753,187
Personal
Care
Products
—
0.9%
BellRing
Brands,
Inc.
(a)
...............
9,590
344,761
Coty,
Inc.,
Class
A
(a)
.................
38,552
464,166
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
32
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Personal
Care
Products
(continued)
Edgewell
Personal
Care
Co.
...........
2,468
$
97,264
elf
Beauty,
Inc.
(a)
...................
6,301
735,453
Herbalife
Ltd.
(a)
....................
54,041
877,626
Inter
Parfums,
Inc.
..................
9,591
1,434,430
Medifast,
Inc.
.....................
12,442
1,267,715
Nu
Skin
Enterprises,
Inc.,
Class
A
........
28,326
832,501
Olaplex
Holdings,
Inc.
(a)
..............
173,269
623,768
USANA
Health
Sciences,
Inc.
(a)
.........
6,122
397,379
7,075,063
Pharmaceuticals
—
0.6%
Athira
Pharma,
Inc.
(a)(c)
...............
100,976
294,850
Axsome
Therapeutics,
Inc.
(a)(c)
..........
9,106
714,548
Corcept
Therapeutics,
Inc.
(a)
...........
55,814
1,422,141
Harmony
Biosciences
Holdings,
Inc.
(a)
.....
2,754
97,409
Innoviva,
Inc.
(a)(c)
...................
38,648
523,680
Ligand
Pharmaceuticals,
Inc.
(a)
..........
5,708
382,036
Phibro
Animal
Health
Corp.,
Class
A
......
5,873
85,041
Prestige
Consumer
Healthcare,
Inc.
(a)
.....
10,345
674,598
Tilray
Brands,
Inc.,
Class
2
(a)(c)
..........
255,783
647,131
4,841,434
Professional
Services
—
2.8%
Alight,
Inc.,
Class
A
(a)
................
113,532
1,110,343
ASGN,
Inc.
(a)
......................
9,172
700,007
CACI
International,
Inc.,
Class
A
(a)
.......
1,083
379,527
Conduent,
Inc.
(a)
...................
138,142
477,971
CSG
Systems
International,
Inc.
.........
7,507
387,286
Dun
&
Bradstreet
Holdings,
Inc.
.........
22,258
263,090
ExlService
Holdings,
Inc.
(a)
............
9,974
1,405,835
Exponent,
Inc.
.....................
21,037
1,884,494
Fiverr
International
Ltd.
(a)(c)
.............
13,092
394,593
FTI
Consulting,
Inc.
(a)(c)
...............
5,921
1,037,122
Heidrick
&
Struggles
International,
Inc.
....
67,622
1,844,052
Huron
Consulting
Group,
Inc.
(a)
..........
1,881
177,886
ICF
International,
Inc.
................
5,405
635,574
Insperity,
Inc.
......................
14,728
1,732,749
KBR,
Inc.
........................
22,819
1,403,140
Kforce,
Inc.
.......................
39,047
2,477,142
Korn
Ferry
.......................
2,326
122,534
Legalzoom.com,
Inc.
(a)
...............
6,671
101,933
ManpowerGroup,
Inc.
................
7,276
573,931
Maximus,
Inc.
.....................
6,167
516,548
Paycor
HCM,
Inc.
(a)
.................
7,508
201,665
Paylocity
Holding
Corp.
(a)
.............
6,767
1,535,094
Robert
Half,
Inc.
...................
22,058
1,635,601
TriNet
Group,
Inc.
(a)
.................
13,837
1,456,067
TrueBlue,
Inc.
(a)
....................
6,204
92,750
TTEC
Holdings,
Inc.
.................
3,906
134,523
Upwork,
Inc.
(a)
.....................
11,572
120,696
22,802,153
Real
Estate
Management
&
Development
—
1.1%
Anywhere
Real
Estate,
Inc.
(a)(c)
..........
189,597
1,588,823
DigitalBridge
Group,
Inc.,
Class
A
........
22,591
361,908
eXp
World
Holdings,
Inc.
..............
91,806
2,289,641
Howard
Hughes
Corp.
(The)
(a)
..........
4,030
340,253
St.
Joe
Co.
(The)
...................
67,450
4,281,726
8,862,351
Residential
REITs
—
0.4%
American
Homes
4
Rent,
Class
A
........
63,664
2,386,127
Apartment
Investment
&
Management
Co.,
Class
A
.......................
71,553
596,036
Veris
Residential,
Inc.
(a)
...............
23,999
448,301
3,430,464
Security
Shares
Shares
Value
Retail
REITs
—
1.8%
Alexander's,
Inc.
...................
4,477
$
865,718
Brixmor
Property
Group,
Inc.
...........
125,786
2,860,374
InvenTrust
Properties
Corp.
............
50,891
1,238,687
Kimco
Realty
Corp.
.................
61,124
1,238,372
Kite
Realty
Group
Trust
...............
50,073
1,145,670
Macerich
Co.
(The)
.................
130,485
1,663,684
Necessity
Retail
REIT,
Inc.
(The),
Class
A
..
242,104
1,718,938
RPT
Realty
.......................
15,127
164,431
SITE
Centers
Corp.
.................
56,569
794,795
Spirit
Realty
Capital,
Inc.
..............
12,989
523,846
Tanger
Factory
Outlet
Centers,
Inc.
.......
57,835
1,353,917
Urstadt
Biddle
Properties,
Inc.,
Class
A
....
33,352
756,423
14,324,855
Semiconductors
&
Semiconductor
Equipment
—
2.7%
Allegro
MicroSystems,
Inc.
(a)(c)
..........
16,837
868,958
Axcelis
Technologies,
Inc.
(a)
............
12,880
2,582,182
Canadian
Solar,
Inc.
(a)(c)
...............
3,633
131,369
Cirrus
Logic,
Inc.
(a)
..................
9,815
793,052
Entegris,
Inc.
......................
28,086
3,081,315
Impinj,
Inc.
(a)
......................
11,189
745,411
Kulicke
&
Soffa
Industries,
Inc.
..........
21,900
1,311,372
Lattice
Semiconductor
Corp.
(a)(c)
.........
45,573
4,144,409
MACOM
Technology
Solutions
Holdings,
Inc.
(a)
6,601
461,542
MKS
Instruments,
Inc.
...............
6,862
749,125
Onto
Innovation,
Inc.
(a)
...............
12,752
1,585,329
Power
Integrations,
Inc.
..............
1,160
112,682
Rambus,
Inc.
(a)
....................
42,175
2,640,577
Semtech
Corp.
(a)
...................
3,382
98,754
Silicon
Laboratories,
Inc.
(a)(c)
............
2,894
431,611
Synaptics,
Inc.
(a)
...................
12,862
1,161,567
Universal
Display
Corp.
..............
2,176
317,435
Veeco
Instruments,
Inc.
(a)
.............
17,989
506,570
21,723,260
Software
—
7.4%
A10
Networks,
Inc.
..................
68,424
1,061,940
ACI
Worldwide,
Inc.
(a)
................
3,588
83,206
Adeia,
Inc.
.......................
50,515
607,190
Agilysys,
Inc.
(a)
....................
2,302
169,496
Alarm.com
Holdings,
Inc.
(a)
............
4,411
243,531
AppLovin
Corp.,
Class
A
(a)(c)
............
40,717
1,278,514
Asana,
Inc.,
Class
A
(a)(c)
...............
32,046
778,077
Aspen
Technology,
Inc.
(a)(c)
.............
10,742
1,917,447
Bentley
Systems,
Inc.,
Class
B
(c)
.........
33,758
1,818,881
Blackbaud,
Inc.
(a)(c)
..................
14,641
1,104,663
BlackLine,
Inc.
(a)
...................
20,004
1,161,832
Box,
Inc.,
Class
A
(a)
.................
66,038
2,063,688
Clear
Secure,
Inc.,
Class
A
............
11,729
278,095
CommVault
Systems,
Inc.
(a)
............
4,470
348,347
Confluent,
Inc.,
Class
A
(a)(c)
............
14,481
500,174
Couchbase,
Inc.
(a)
..................
17,698
295,380
CyberArk
Software
Ltd.
(a)(c)
.............
2,776
460,844
Digital
Turbine,
Inc.
(a)
................
9,733
105,506
Domo,
Inc.,
Class
B
(a)
................
90,267
1,613,071
Elastic
NV
(a)
......................
40,402
2,684,713
EngageSmart,
Inc.
(a)
.................
14,142
268,132
Everbridge,
Inc.
(a)
...................
2,942
90,731
Fair
Isaac
Corp.
(a)
...................
6,692
5,607,695
Five9,
Inc.
(a)
......................
18,910
1,659,353
Gitlab,
Inc.,
Class
A
(a)
................
21,648
1,074,390
InterDigital,
Inc.
....................
4,880
452,327
Jamf
Holding
Corp.
(a)(c)
...............
4,256
92,440
JFrog
Ltd.
(a)
.......................
17,105
526,321
LiveRamp
Holdings,
Inc.
(a)
.............
5,954
169,927
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Schedule
of
Investments
33
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Software
(continued)
Manhattan
Associates,
Inc.
(a)
...........
19,949
$
3,802,678
MicroStrategy,
Inc.,
Class
A
(a)(c)
..........
1,307
572,309
Mitek
Systems,
Inc.
(a)
................
10,067
102,784
Model
N,
Inc.
(a)
....................
17,771
592,130
Monday.com
Ltd.
(a)
..................
6,942
1,254,975
New
Relic,
Inc.
(a)
...................
14,185
1,191,256
Nutanix,
Inc.,
Class
A
(a)
...............
103,115
3,114,073
PagerDuty,
Inc.
(a)
...................
30,267
784,521
Pegasystems,
Inc.
..................
8,644
455,971
Progress
Software
Corp.
..............
31,976
1,920,479
PROS
Holdings,
Inc.
(a)
...............
7,277
276,526
Qualys,
Inc.
(a)
.....................
8,666
1,202,841
Rapid7,
Inc.
(a)(c)
....................
8,834
405,569
RingCentral,
Inc.,
Class
A
(a)
............
48,413
2,002,362
Smartsheet,
Inc.,
Class
A
(a)
............
33,113
1,470,217
SolarWinds
Corp.
(a)
.................
51,060
538,172
Sprout
Social,
Inc.,
Class
A
(a)(c)
..........
48,242
2,756,548
SPS
Commerce,
Inc.
(a)
...............
6,021
1,086,128
Tenable
Holdings,
Inc.
(a)
..............
17,442
848,728
Teradata
Corp.
(a)
...................
17,301
983,562
Varonis
Systems,
Inc.
(a)
...............
41,940
1,203,678
Veritone,
Inc.
(a)(c)
...................
104,564
482,563
Workiva,
Inc.,
Class
A
(a)(c)
.............
38,015
4,002,599
Yext,
Inc.
(a)
.......................
49,411
480,275
60,046,855
Specialized
REITs
—
1.0%
CubeSmart
.......................
22,636
981,497
EPR
Properties
....................
4,438
198,112
Gaming
&
Leisure
Properties,
Inc.
.......
36,226
1,719,286
Lamar
Advertising
Co.,
Class
A
(c)
........
25,099
2,477,271
Outfront
Media,
Inc.
.................
20,066
310,220
PotlatchDeltic
Corp.
.................
10,238
549,064
Rayonier,
Inc.
.....................
19,921
659,784
Safehold,
Inc.
.....................
33,499
828,430
Uniti
Group,
Inc.
...................
42,727
238,417
7,962,081
Specialty
Retail
—
4.1%
1-800-Flowers.com,
Inc.,
Class
A
(a)
.......
10,897
94,586
Aaron's
Co.,
Inc.
(The)
...............
38,697
612,187
Abercrombie
&
Fitch
Co.,
Class
A
(a)
.......
46,411
1,838,340
Academy
Sports
&
Outdoors,
Inc.
........
29,750
1,778,752
American
Eagle
Outfitters,
Inc.
..........
25,826
362,855
Asbury
Automotive
Group,
Inc.
(a)
.........
5,653
1,275,317
AutoNation,
Inc.
(a)
...................
12,626
2,032,533
Bath
&
Body
Works,
Inc.
..............
62,370
2,311,432
Buckle,
Inc.
(The)
..................
21,406
782,603
Caleres,
Inc.
......................
14,322
387,267
Chewy,
Inc.,
Class
A
(a)(c)
..............
4,001
135,634
Children's
Place,
Inc.
(The)
(a)(c)
..........
20,774
653,135
Citi
Trends,
Inc.
(a)(c)
..................
16,002
301,638
Dick's
Sporting
Goods,
Inc.
............
22,370
3,154,170
Farfetch
Ltd.,
Class
A
(a)(c)
..............
35,159
203,219
Five
Below,
Inc.
(a)
...................
2,540
529,184
Foot
Locker,
Inc.
...................
7,803
209,667
GameStop
Corp.,
Class
A
(a)(c)
...........
81,285
1,804,527
Gap,
Inc.
(The)
....................
11,358
116,987
Genesco,
Inc.
(a)
....................
22,573
636,784
Group
1
Automotive,
Inc.
(c)
.............
6,708
1,734,219
Guess?,
Inc.
......................
58,520
1,228,335
Hibbett,
Inc.
......................
10,559
489,938
Lithia
Motors,
Inc.
..................
297
92,227
MarineMax,
Inc.
(a)
...................
2,466
99,454
ODP
Corp.
(The)
(a)
..................
14,197
708,146
Security
Shares
Shares
Value
Specialty
Retail
(continued)
Petco
Health
&
Wellness
Co.,
Inc.
(a)(c)
.....
8,889
$
72,534
Revolve
Group,
Inc.,
Class
A
(a)(c)
.........
26,230
517,256
RH
(a)(c)
..........................
2,610
1,013,124
Signet
Jewelers
Ltd.
.................
29,635
2,385,321
Sleep
Number
Corp.
(a)
...............
40,135
1,111,338
Sonic
Automotive,
Inc.,
Class
A
.........
5,910
283,030
Upbound
Group,
Inc.
................
35,676
1,235,460
Wayfair,
Inc.,
Class
A
(a)
...............
8,514
662,985
Williams-Sonoma,
Inc.
...............
19,956
2,766,700
Zumiez,
Inc.
(a)
.....................
4,565
86,096
33,706,980
Technology
Hardware,
Storage
&
Peripherals
—
0.9%
Avid
Technology,
Inc.
(a)(c)
..............
13,212
314,974
Pure
Storage,
Inc.,
Class
A
(a)
...........
78,514
2,904,233
Super
Micro
Computer,
Inc.
(a)
...........
8,054
2,659,995
Xerox
Holdings
Corp.
................
87,844
1,403,747
7,282,949
Textiles,
Apparel
&
Luxury
Goods
—
1.9%
Capri
Holdings
Ltd.
(a)
................
30,008
1,107,595
Columbia
Sportswear
Co.
.............
8,282
651,048
Crocs,
Inc.
(a)
......................
24,830
2,690,330
Deckers
Outdoor
Corp.
(a)
..............
8,045
4,373,986
Figs,
Inc.,
Class
A
(a)(c)
................
9,242
68,021
G-III
Apparel
Group
Ltd.
(a)
.............
14,783
306,156
On
Holding
AG,
Class
A
(a)
.............
40,243
1,448,748
Oxford
Industries,
Inc.
...............
7,114
767,245
PVH
Corp.
.......................
15,608
1,399,101
Tapestry,
Inc.
......................
44,237
1,908,827
Under
Armour,
Inc.,
Class
A
(a)(c)
..........
52,803
425,592
Under
Armour,
Inc.,
Class
C,
NVS
(a)(c)
.....
85,882
637,245
15,783,894
Tobacco
—
0.5%
Turning
Point
Brands,
Inc.
.............
11,104
264,831
Universal
Corp.
....................
5,048
255,277
Vector
Group
Ltd.
..................
252,176
3,308,549
3,828,657
Trading
Companies
&
Distributors
—
2.3%
Applied
Industrial
Technologies,
Inc.
......
4,484
650,135
Boise
Cascade
Co.
.................
9,238
956,041
Core
&
Main,
Inc.,
Class
A
(a)
............
43,580
1,377,564
GATX
Corp.
......................
9,301
1,165,973
Global
Industrial
Co.
.................
24,469
697,367
GMS,
Inc.
(a)
.......................
7,867
579,719
H&E
Equipment
Services,
Inc.
..........
14,343
696,783
McGrath
RentCorp
..................
6,573
633,506
MRC
Global,
Inc.
(a)
..................
94,598
1,068,011
MSC
Industrial
Direct
Co.,
Inc.,
Class
A
....
1,727
174,289
NOW,
Inc.
(a)
......................
169,270
1,927,985
SiteOne
Landscape
Supply,
Inc.
(a)
........
3,322
564,740
Triton
International
Ltd.
...............
13,483
1,136,752
Univar
Solutions,
Inc.
(a)
...............
31,686
1,145,132
Veritiv
Corp.
......................
12,511
1,753,166
Watsco,
Inc.
......................
5,727
2,165,894
WESCO
International,
Inc.
.............
10,768
1,890,538
18,583,595
Water
Utilities
—
0.2%
American
States
Water
Co.
............
13,736
1,214,400
Middlesex
Water
Co.
................
3,423
275,277
1,489,677
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
34
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Shares
Value
Wireless
Telecommunication
Services
—
0.0%
Telephone
&
Data
Systems,
Inc.
.........
13,980
$
112,120
Total
Long-Term
Investments
—
99.6%
(Cost:
$747,220,024)
.............................
811,726,168
Short-Term
Securities
Money
Market
Funds
—
7.0%
(d)(e)
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares,
5.42%
(f)
............
54,589,799
54,600,717
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
..................
2,452,652
2,452,652
Total
Short-Term
Securities
—
7.0%
(Cost:
$57,051,665)
..............................
57,053,369
Total
Investments
—
106.6%
(Cost:
$804,271,689
)
.............................
868,779,537
Liabilities
in
Excess
of
Other
Assets
—
(6.6)%
............
(53,911,092)
Net
Assets
—
100.0%
..............................
$
814,868,445
(a)
Non-income
producing
security.
(b)
This
security
may
be
resold
to
qualified
foreign
investors
and
foreign
institutional
buyers
under
Regulation
S
of
the
Securities
Act
of
1933.
(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
the
cash
collateral
from
loaned
securities.
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
$
54,176,591
$
406,228
(a)
$
—
$
25,507
$
(7,609)
$
54,600,717
54,589,799
$
652,137
(b)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
8,530,000
—
(6,077,348)
(a)
—
—
2,452,652
2,452,652
369,900
7
$
25,507
$
(7,609)
$
57,053,369
$
1,022,037
$
7
—
—
(a)
Represents
net
amount
purchased
(sold).
(b)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
Russell
2000
Micro
E-Mini
Index
................................................
87
09/15/23
$
876
$
27,849
S&P
Midcap
400
E-Mini
Index
.................................................
2
09/15/23
549
21,616
$
49,465
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Schedule
of
Investments
35
(a)
The
Fund
receives
the
total
return
on
a
portfolio
of
long
positions
underlying the
total
return
swap.
The
Fund
pays
the
total
return
on
a
portfolio
of
short
positions
underlying
the
total
return
swap.
In
addition,
the
Fund
pays
or
receives
a
variable
rate
of
interest,
based
on
a
specified
benchmark.
The
benchmark
and
spread
are
determined
based
upon
the
country
and/or
currency
of
the
individual
underlying
positions.
The
following
are
the
specified
benchmarks
(plus
or
minus
a
range)
used
in
determining
the
variable
rate
of
interest:
OTC
Total
Return
Swaps
Reference
Entity
Payment
Frequency
Counterparty
(a)
Termination
Date
Net
Notional
Accrued
Unrealized
Appreciation
(Depreciation)
Net
Value
of
Reference
Entity
Gross
Notional
Amount
Net
Asset
Percentage
Equity
Securities
Long/Short
...
Monthly
Goldman
Sachs
Bank
USA
(b)
08/19/26
$
165,748
$
16,772
(c)
$
181,762
0.0
%
(d)
Monthly
HSBC
Bank
plc
(e)
02/10/28
397,658
26,040
(f)
423,569
0.0
(d)
Monthly
JPMorgan
Chase
Bank
NA
(g)
08/10/23
840,293
97,127
(h)
927,089
0.1
$
139,939
$
1,532,420
(b)
(e)
(g)
Range:
40
basis
points
40
basis
points
40
basis
points
Benchmarks:
USD
-
1D
Overnight
Fed
Funds
Effective
Rate
(FEDL01)
USD
-
1D
Overnight
Bank
Funding
Rate
(OBFR01)
USD
-
1D
Overnight
Bank
Funding
Rate
(OBFR01)
(c)
Amount
includes
$758
of
net
dividends
and
financing
fees.
(d)
Rounds
to
less
than
0.1%.
(f)
Amount
includes
$129
of
net
dividends
and
financing
fees.
(h)
Amount
includes
$10,331
of
net
dividends
and
financing
fees.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
36
The
following
table
represents
the
individual
long
positions
and
related
values
of
the
equity
securities
underlying
the
total
return
swap
with
Goldman
Sachs
Bank
USA,
as
of
period
end,
termination
date
August
19,
2026:
Shares
Value
%
of
Basket
Value
Reference
Entity
—
Long
Common
Stocks
Banks
$
Bank
of
Hawaii
Corp.
.......
149
$
8,512
4.7
%
BankUnited,
Inc.
..........
302
9,012
5.0
City
Holding
Co.
..........
12
1,187
0.6
NBT
Bancorp,
Inc.
.........
277
10,304
5.7
OFG
Bancorp
............
529
17,716
9.7
Preferred
Bank/Los
Angeles
CA
1,637
108,173
59.5
154,904
Office
REITs
Douglas
Emmett,
Inc.
......
588
8,644
4.8
SL
Green
Realty
Corp.
......
483
18,214
10.0
26,858
Total
Reference
Entity
—
Long
............
181,762
Net
Value
of
Reference
Entity
—
Goldman
Sachs
Bank
USA
.........................
$
181,762
The
following
table
represents
the
individual
long
positions
and
related
values
of
the
equity
securities
underlying
the
total
return
swap
with
HSBC
Bank
plc,
as
of
period
end,
termination
date
February
10,
2028:
Shares
Value
%
of
Basket
Value
Reference
Entity
—
Long
Common
Stocks
Banks
$
Bancorp,
Inc.
(The)
........
1,231
46,655
11.0
Community
Bank
System,
Inc.
.
180
9,690
2.3
Customers
Bancorp,
Inc.
....
83
3,484
0.8
CVB
Financial
Corp.
.......
79
1,491
0.4
Eagle
Bancorp,
Inc.
........
300
8,310
2.0
First
BanCorp/Puerto
Rico
...
860
12,771
3.0
Pathward
Financial,
Inc.
.....
746
38,762
9.2
Preferred
Bank/Los
Angeles
CA
1,850
122,248
28.9
Trustmark
Corp.
..........
843
22,137
5.2
Washington
Federal,
Inc.
....
269
8,350
2.0
273,898
Insurance
Assurant,
Inc.
............
247
33,224
7.8
Employers
Holdings,
Inc.
....
922
35,617
8.4
Genworth
Financial,
Inc.,
Class
A
..................
1,407
8,245
1.9
Horace
Mann
Educators
Corp.
286
8,617
2.0
85,703
Consumer
Finance
Green
Dot
Corp.,
Class
A
....
2,260
44,183
10.4
Hotel
&
Resort
REITs
Xenia
Hotels
&
Resorts,
Inc.
..
489
6,210
1.5
Capital
Markets
Moelis
&
Co.,
Class
A
......
278
13,575
3.2
Total
Reference
Entity
—
Long
............
423,569
Net
Value
of
Reference
Entity
—
HSBC
Bank
plc
$
423,569
The
following
table
represents
the
individual
long
positions
and
related
values
of
the
equity
securities
underlying
the
total
return
swap
with
JPMorgan
Chase
Bank
NA,
as
of
period
end,
termination
date
August
10,
2023:
Shares
Value
%
of
Basket
Value
Reference
Entity
—
Long
Common
Stocks
Banks
$
Community
Bank
System,
Inc.
.
1,440
$
77,515
8.4
%
NBT
Bancorp,
Inc.
.........
1,002
37,275
4.0
Preferred
Bank/Los
Angeles
CA
5,779
381,876
41.2
Trustmark
Corp.
..........
608
15,966
1.7
512,632
Consumer
Finance
Green
Dot
Corp.,
Class
A
....
16,621
324,941
35.0
Insurance
Horace
Mann
Educators
Corp.
2,971
89,516
9.7
Total
Reference
Entity
—
Long
............
927,089
Net
Value
of
Reference
Entity
—
JPMorgan
Chase
Bank
NA
..........................
$
927,089
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
Schedule
of
Investments
37
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
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
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
OTC
Swaps
Description
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
OTC
Swaps
...................................................................
$
—
$
—
$
139,939
$
—
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
49,465
$
—
$
—
$
—
$
49,465
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
—
139,939
—
—
—
139,939
$
—
$
—
$
189,404
$
—
$
—
$
—
$
189,404
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
July
31,
2023,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
161,458
$
—
$
—
$
—
$
161,458
Swaps
..............................
—
—
(2,770,676)
—
—
—
(2,770,676)
$
—
$
—
$
(2,609,218)
$
—
$
—
$
—
$
(2,609,218)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
(112,594)
$
—
$
—
$
—
$
(112,594)
Swaps
..............................
—
—
(407,290)
—
—
—
(407,290)
$
—
$
—
$
(519,884)
$
—
$
—
$
—
$
(519,884)
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
2,212,970
Total
return
swaps
Average
notional
value
...............................................................................................
$
4,572,560
The
Fund’s
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
12,108
$
—
Swaps
—
OTC
(a)
....................................................................................
139,939
—
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
152,047
$
—
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
(“MNA”)
.........................................
(12,108)
—
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
139,939
$
—
(a)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/(received)
in
the
Statements
of
Assets
and
Liabilities.
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Small-Cap
Equity
Factor
ETF
38
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
The
following
table
presents
the
Fund's
derivative
assets
by
counterparty
net
of
amounts
available
for
offset
under
an
MNA
and
net
of
the
related
collateral
received
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-Cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(
b
)
Goldman
Sachs
Bank
USA
..........................
$
16,772
$
—
$
—
$
—
$
16,772
HSBC
Bank
plc
..................................
26,040
—
—
—
26,040
JPMorgan
Chase
Bank
NA
..........................
97,127
—
—
—
97,127
$
139,939
$
—
$
—
$
—
$
139,939
(a)
The
amount
of
derivatives
available
for
offset
is
limited
to
the
amount
of
derivative
assets
and/or
liabilities
that
are
subject
to
an
MNA.
(b)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
811,726,168
$
—
$
—
$
811,726,168
Short-Term
Securities
Money
Market
Funds
......................................
57,053,369
—
—
57,053,369
$
868,779,537
$
—
$
—
$
868,779,537
Derivative
Financial
Instruments
(a)
Assets
Equity
contracts
...........................................
$
49,465
$
139,939
$
—
$
189,404
$
49,465
$
139,939
$
—
$
189,404
(a)
Derivative
financial
instruments
are
swaps
and
futures
contracts.
Swaps
and
futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
Schedule
of
Investments
July
31,
2023
iShares
®
U.S.
Tech
Breakthrough
Multisector
ETF
Schedule
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Banks
—
0.0%
Pathward
Financial,
Inc.
..............
711
$
36,944
Biotechnology
—
8.6%
(a)
Arcus
Biosciences,
Inc.
(b)
..............
11,500
228,850
Beam
Therapeutics,
Inc.
..............
15,372
474,534
BioCryst
Pharmaceuticals,
Inc.
..........
45,084
333,171
Blueprint
Medicines
Corp.
.............
14,373
948,618
Editas
Medicine,
Inc.
................
16,523
145,072
Exelixis,
Inc.
......................
76,852
1,514,753
Intellia
Therapeutics,
Inc.
.............
19,962
844,991
Iovance
Biotherapeutics,
Inc.
...........
44,022
319,600
Moderna,
Inc.
.....................
80,466
9,467,630
Regeneron
Pharmaceuticals,
Inc.
........
15,837
11,749,629
SpringWorks
Therapeutics,
Inc.
.........
11,503
360,964
Twist
Bioscience
Corp.
(b)
..............
13,284
323,332
Vir
Biotechnology,
Inc.
...............
20,606
290,132
Xencor,
Inc.
(b)
.....................
14,412
350,067
27,351,343
Broadline
Retail
—
6.3%
Amazon.com,
Inc.
(a)
.................
94,432
12,623,670
Coupang,
Inc.,
Class
A
(a)(b)
.............
73,896
1,341,212
eBay,
Inc.
........................
34,675
1,543,384
Etsy,
Inc.
(a)
.......................
7,978
810,964
MercadoLibre,
Inc.
(a)
.................
2,892
3,580,441
19,899,671
Capital
Markets
—
0.3%
Avantax,
Inc.
(a)
.....................
874
22,619
Coinbase
Global,
Inc.,
Class
A
(a)
.........
4,122
406,470
Donnelley
Financial
Solutions,
Inc.
(a)(b)
.....
696
32,921
MarketAxess
Holdings,
Inc.
............
902
242,836
Open
Lending
Corp.,
Class
A
(a)
..........
2,441
27,559
Tradeweb
Markets,
Inc.,
Class
A
.........
2,730
223,287
Virtu
Financial,
Inc.,
Class
A
............
2,271
42,150
997,842
Chemicals
—
0.2%
Ginkgo
Bioworks
Holdings,
Inc.,
Class
A
(a)(b)
.
304,299
763,790
Communications
Equipment
—
0.4%
ADTRAN
Holdings,
Inc.
..............
7,567
73,627
Calix,
Inc.
(a)
.......................
6,212
280,223
Juniper
Networks,
Inc.
...............
34,033
946,118
1,299,968
Consumer
Finance
—
0.2%
Bread
Financial
Holdings,
Inc.
..........
1,235
51,339
Enova
International,
Inc.
(a)
.............
742
40,877
Green
Dot
Corp.,
Class
A
(a)
............
1,254
24,516
OneMain
Holdings,
Inc.
...............
2,855
129,845
SoFi
Technologies,
Inc.
(a)
..............
18,641
213,440
Upstart
Holdings,
Inc.
(a)
...............
1,670
114,712
574,729
Diversified
Telecommunication
Services
—
0.0%
Lumen
Technologies,
Inc.
.............
48,667
87,114
Electrical
Equipment
—
0.7%
AMETEK,
Inc.
.....................
11,271
1,787,581
Regal
Rexnord
Corp.
................
3,234
505,086
2,292,667
Security
Shares
Shares
Value
Electronic
Equipment,
Instruments
&
Components
—
0.2%
Cognex
Corp.
.....................
8,472
$
462,741
MicroVision,
Inc.
(a)(b)
.................
8,566
34,264
497,005
Entertainment
—
3.0%
Netflix,
Inc.
(a)
......................
21,494
9,435,221
Financial
Services
—
8.0%
Affirm
Holdings,
Inc.,
Class
A
(a)(b)
.........
5,071
98,327
AvidXchange
Holdings,
Inc.
(a)
...........
3,451
42,827
Block,
Inc.,
Class
A
(a)
................
12,887
1,037,790
Euronet
Worldwide,
Inc.
(a)
.............
1,125
98,854
Fidelity
National
Information
Services,
Inc.
..
14,197
857,215
Fiserv,
Inc.
(a)
......................
14,740
1,860,335
FleetCor
Technologies,
Inc.
(a)
...........
1,698
422,649
Flywire
Corp.
(a)(b)
...................
2,405
82,107
Global
Payments,
Inc.
...............
6,233
687,188
I3
Verticals,
Inc.,
Class
A
(a)
.............
577
14,431
Jack
Henry
&
Associates,
Inc.
..........
1,727
289,393
Marqeta,
Inc.,
Class
A
(a)
..............
9,240
51,559
Mastercard,
Inc.,
Class
A
..............
20,200
7,964,456
Payoneer
Global,
Inc.
(a)
...............
7,901
42,033
PayPal
Holdings,
Inc.
(a)
...............
26,619
2,018,253
Repay
Holdings
Corp.,
Class
A
(a)
........
1,990
16,616
Shift4
Payments,
Inc.,
Class
A
(a)
.........
1,353
93,343
Toast,
Inc.,
Class
A
(a)
................
7,765
171,374
Visa,
Inc.,
Class
A
..................
38,835
9,232,245
WEX,
Inc.
(a)
.......................
1,036
196,167
25,277,162
Health
Care
Equipment
&
Supplies
—
1.8%
Intuitive
Surgical,
Inc.
(a)
...............
17,096
5,545,942
Household
Durables
—
0.0%
iRobot
Corp.
(a)
.....................
1,308
52,320
Interactive
Media
&
Services
—
8.8%
(a)
Alphabet,
Inc.,
Class
A
...............
94,115
12,490,943
Bumble,
Inc.,
Class
A
................
4,791
88,729
Meta
Platforms,
Inc.,
Class
A
...........
43,065
13,720,509
Pinterest,
Inc.,
Class
A
...............
28,739
833,144
Rumble,
Inc.,
Class
A
(b)
...............
4,119
35,506
Snap,
Inc.,
Class
A,
NVS
..............
48,497
550,926
Vimeo,
Inc.
.......................
11,662
48,047
27,767,804
IT
Services
—
3.0%
(a)
Akamai
Technologies,
Inc.
.............
16,019
1,513,795
DigitalOcean
Holdings,
Inc.
............
3,212
159,058
Fastly,
Inc.,
Class
A
.................
7,418
136,269
GoDaddy,
Inc.,
Class
A
...............
9,972
768,741
MongoDB,
Inc.,
Class
A
..............
4,406
1,865,500
Okta,
Inc.,
Class
A
..................
16,196
1,244,825
Snowflake,
Inc.,
Class
A
..............
18,029
3,203,934
Twilio,
Inc.,
Class
A
.................
11,159
736,829
9,628,951
Leisure
Products
—
0.0%
Peloton
Interactive,
Inc.,
Class
A
(a)
.......
15,197
147,563
Life
Sciences
Tools
&
Services
—
0.0%
(a)(c)
OmniAb,
Inc.,
12.50
Earnout
Shares,
NVS
..
934
—
OmniAb,
Inc.,
15.00
Earnout
Shares,
NVS
..
934
—
—
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Tech
Breakthrough
Multisector
ETF
40
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Machinery
—
0.0%
(a)
3D
Systems
Corp.
..................
6,231
$
54,272
Proto
Labs,
Inc.
(b)
...................
1,342
44,487
98,759
Pharmaceuticals
—
0.1%
Ligand
Pharmaceuticals,
Inc.
(a)
..........
3,956
264,775
Professional
Services
—
1.3%
Booz
Allen
Hamilton
Holding
Corp.
.......
13,761
1,666,182
Broadridge
Financial
Solutions,
Inc.
......
2,811
472,023
CACI
International,
Inc.,
Class
A
(a)
.......
2,391
837,902
Science
Applications
International
Corp.
...
5,727
694,914
SS&C
Technologies
Holdings,
Inc.
.......
5,207
303,308
3,974,329
Semiconductors
&
Semiconductor
Equipment
—
17.8%
Advanced
Micro
Devices,
Inc.
(a)
.........
78,429
8,972,278
Analog
Devices,
Inc.
.................
24,721
4,932,581
CEVA,
Inc.
(a)
......................
1,164
31,614
Intel
Corp.
.......................
204,745
7,323,729
Lattice
Semiconductor
Corp.
(a)
..........
6,669
606,479
Marvell
Technology,
Inc.
..............
41,883
2,727,840
MaxLinear,
Inc.
(a)(b)
..................
3,577
88,245
Microchip
Technology,
Inc.
.............
26,228
2,463,858
NVIDIA
Corp.
.....................
29,856
13,951,411
QUALCOMM,
Inc.
..................
54,649
7,222,958
Silicon
Laboratories,
Inc.
(a)
.............
1,546
230,570
Texas
Instruments,
Inc.
...............
44,498
8,009,640
56,561,203
Software
—
31.4%
A10
Networks,
Inc.
..................
7,331
113,777
ACI
Worldwide,
Inc.
(a)
................
2,554
59,227
Adobe,
Inc.
(a)(b)
.....................
22,361
12,212,907
Alarm.com
Holdings,
Inc.
(a)
............
5,063
279,528
Altair
Engineering,
Inc.,
Class
A
(a)
........
2,561
191,921
Alteryx,
Inc.,
Class
A
(a)
...............
3,843
159,331
ANSYS,
Inc.
(a)
.....................
4,198
1,436,136
Appian
Corp.,
Class
A
(a)
..............
2,657
136,889
Atlassian
Corp.,
Class
A
(a)(b)
............
9,744
1,772,823
Autodesk,
Inc.
(a)
....................
10,466
2,218,687
AvePoint,
Inc.,
Class
A
(a)(b)
.............
7,334
45,471
Bentley
Systems,
Inc.,
Class
B
(b)
.........
10,728
578,025
BILL
Holdings,
Inc.
(a)
.................
2,440
305,830
Black
Knight,
Inc.
(a)
..................
3,608
253,715
BlackLine,
Inc.
(a)
...................
1,193
69,289
C3.ai,
Inc.,
Class
A
(a)(b)
...............
5,885
247,170
CCC
Intelligent
Solutions
Holdings,
Inc.
(a)
...
3,173
34,966
Clear
Secure,
Inc.,
Class
A
............
8,620
204,380
Clearwater
Analytics
Holdings,
Inc.,
Class
A
(a)(b)
1,785
30,756
CommVault
Systems,
Inc.
(a)
............
2,799
218,126
Confluent,
Inc.,
Class
A
(a)(b)
............
11,498
397,141
Crowdstrike
Holdings,
Inc.,
Class
A
(a)
......
23,284
3,764,091
Dropbox,
Inc.,
Class
A
(a)
..............
16,759
451,655
Everbridge,
Inc.
(a)
...................
4,282
132,057
ForgeRock,
Inc.,
Class
A
(a)
.............
4,690
96,849
Fortinet,
Inc.
(a)
.....................
69,920
5,434,182
Freshworks,
Inc.,
Class
A
(a)(b)
...........
8,829
164,749
Gitlab,
Inc.,
Class
A
(a)
................
5,186
257,381
Guidewire
Software,
Inc.
(a)
.............
1,930
163,703
HubSpot,
Inc.
(a)
....................
3,074
1,784,611
Informatica,
Inc.,
Class
A
(a)
............
7,279
138,592
Intuit,
Inc.
........................
6,532
3,342,424
Matterport,
Inc.,
Class
A
(a)
.............
12,026
40,768
Microsoft
Corp.
....................
35,004
11,758,544
MicroStrategy,
Inc.,
Class
A
(a)
...........
726
317,901
Security
Shares
Shares
Value
Software
(continued)
nCino,
Inc.
(a)
......................
1,405
$
45,452
Nutanix,
Inc.,
Class
A
(a)
...............
15,276
461,335
Oracle
Corp.
......................
100,519
11,783,842
Palo
Alto
Networks,
Inc.
(a)
.............
32,299
8,073,458
Pegasystems,
Inc.
..................
2,518
132,825
Progress
Software
Corp.
..............
2,762
165,886
PTC,
Inc.
(a)
.......................
5,442
793,498
Q2
Holdings,
Inc.
(a)
..................
1,345
47,707
Qualys,
Inc.
(a)
.....................
3,866
536,601
Rapid7,
Inc.
(a)
.....................
6,255
287,167
Salesforce,
Inc.
(a)
...................
55,094
12,396,701
SentinelOne,
Inc.,
Class
A
(a)
............
23,145
385,827
ServiceNow,
Inc.
(a)
..................
13,151
7,667,033
Splunk,
Inc.
(a)
.....................
9,807
1,062,392
Sprinklr,
Inc.,
Class
A
(a)
...............
5,720
80,309
Sprout
Social,
Inc.,
Class
A
(a)
...........
2,962
169,249
Tenable
Holdings,
Inc.
(a)
..............
11,818
575,064
Teradata
Corp.
(a)
...................
6,501
369,582
Varonis
Systems,
Inc.
(a)
...............
11,407
327,381
Vertex,
Inc.,
Class
A
(a)
................
1,023
21,237
VMware,
Inc.,
Class
A
(a)
..............
23,114
3,643,460
Workiva,
Inc.,
Class
A
(a)
...............
1,115
117,398
Zscaler,
Inc.
(a)
.....................
9,081
1,456,411
Zuora,
Inc.,
Class
A
(a)
................
8,292
97,265
99,510,682
Specialized
REITs
—
2.3%
Digital
Realty
Trust,
Inc.
..............
18,894
2,354,570
Equinix,
Inc.
......................
6,036
4,888,677
7,243,247
Technology
Hardware,
Storage
&
Peripherals
—
5.5%
Apple,
Inc.
.......................
64,845
12,738,800
HP,
Inc.
.........................
63,940
2,099,150
NetApp,
Inc.
......................
13,835
1,079,269
Pure
Storage,
Inc.,
Class
A
(a)
...........
18,676
690,825
Western
Digital
Corp.
(a)
...............
20,468
871,118
17,479,162
Total
Long-Term
Investments
—
99.9%
(Cost:
$280,473,060)
.............................
316,788,193
Short-Term
Securities
Money
Market
Funds
—
5.1%
(d)(e)
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares,
5.42%
(f)
............
15,733,243
15,736,390
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares,
5.22%
..................
413,027
413,027
Total
Short-Term
Securities
—
5.1%
(Cost:
$16,150,154)
..............................
16,149,417
Total
Investments
—
105.0%
(Cost:
$296,623,214
)
.............................
332,937,610
Liabilities
in
Excess
of
Other
Assets
—
(5.0)%
............
(15,747,698)
Net
Assets
—
100.0%
..............................
$
317,189,912
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Tech
Breakthrough
Multisector
ETF
Schedule
of
Investments
41
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
(a)
Non-income
producing
security.
(b)
All
or
a
portion
of
this
security
is
on
loan.
(c)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(d)
Affiliate
of
the
Fund.
(e)
Annualized
7-day
yield
as
of
period
end.
(f)
All
or
a
portion
of
this
security
was
purchased
with
the
cash
collateral
from
loaned
securities.
Affiliated
Issuer
Value
at
07/31/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/23
Shares
Held
at
07/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Cash
Funds:
Institutional,
SL
Agency
Shares
$
15,948,237
$
—
$
(211,272)
(a)
$
379
$
(954)
$
15,736,390
15,733,243
$
87,978
(b)
$
—
BlackRock
Cash
Funds:
Treasury,
SL
Agency
Shares
........
350,000
63,027
(a)
—
—
—
413,027
413,027
18,530
—
$
379
$
(954)
$
16,149,417
$
106,508
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
(b)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
Russell
2000
E-Mini
Index
....................................................
3
09/15/23
$
302
$
17,594
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
17,594
$
—
$
—
$
—
$
17,594
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
2023
iShares
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
July
31,
2023
iShares
®
U.S.
Tech
Breakthrough
Multisector
ETF
42
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
See
notes
to
financial
statements.
For
the
period
ended
July
31,
2023,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
39,326
$
—
$
—
$
—
$
39,326
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
(9,920)
$
—
$
—
$
—
$
(9,920)
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
316,693
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
316,788,193
$
—
$
—
$
316,788,193
Short-Term
Securities
Money
Market
Funds
......................................
16,149,417
—
—
16,149,417
$
332,937,610
$
—
$
—
$
332,937,610
Derivative
Financial
Instruments
(a)
Assets
Equity
contracts
...........................................
$
17,594
$
—
$
—
$
17,594
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
Statements
of
Assets
and
Liabilities
July
31,
2023
43
Financial
Statements
See
notes
to
financial
statements.
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
iShares
U.S.
Equity
Factor
ETF
iShares
U.S.
Small-Cap
Equity
Factor
ETF
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
ASSETS
Investments,
at
value
—
unaffiliated
(a)
(b)
.........................................
$
826,857,547
$
1,424,001,835
$
811,726,168
$
316,788,193
Investments,
at
value
—
affiliated
(c)
............................................
26,123,367
10,777,027
57,053,369
16,149,417
Cash
...............................................................
—
3,900
2,402
—
Cash
pledged:
Futures
contracts
......................................................
75,000
178,000
92,000
21,000
Receivables:
–
–
–
–
Investments
sold
......................................................
8,781,492
—
11,163
—
Securities
lending
income
—
affiliated
........................................
27,778
2,230
163,861
7,491
Swaps
............................................................
—
—
7,568
—
Dividends
—
unaffiliated
.................................................
308,429
1,391,779
360,158
70,039
Dividends
—
affiliated
...................................................
5,888
9,096
17,841
2,127
Variation
margin
on
futures
contracts
.........................................
5,342
5,968
12,108
3,380
Unrealized
appreciation
on:
–
–
–
–
OTC
swaps
..........................................................
—
—
139,939
—
Total
assets
...........................................................
862,184,843
1,436,369,835
869,586,577
333,041,647
LIABILITIES
Bank
overdraft
..........................................................
40,844
—
—
4,363
Collateral
on
securities
loaned
...............................................
23,708,934
5,265,611
54,615,265
15,748,637
Payables:
–
–
–
–
Investments
purchased
..................................................
10,010,905
—
—
—
Investment
advisory
fees
.................................................
137,732
93,629
102,867
98,735
Total
liabilities
..........................................................
33,898,415
5,359,240
54,718,132
15,851,735
Commitments
and
contingent
liabilities
—
—
—
—
NET
ASSETS
..........................................................
$
828,286,428
$
1,431,010,595
$
814,868,445
$
317,189,912
NET
ASSETS
CONSIST
OF:
Paid-in
capital
..........................................................
$
893,262,843
$
1,360,524,730
$
871,585,757
$
301,585,123
Accumulated
earnings
(loss)
................................................
(64,976,415)
70,485,865
(56,717,312)
15,604,789
NET
ASSETS
..........................................................
$
828,286,428
$
1,431,010,595
$
814,868,445
$
317,189,912
NET
ASSET
VALUE
Shares
outstanding
......................................................
23,550,000
31,050,000
14,400,000
8,050,000
Net
asset
value
.........................................................
$
35.17
$
46.09
$
56.59
$
39.40
Shares
authorized
.......................................................
Unlimited
Unlimited
Unlimited
Unlimited
Par
value
.............................................................
None
None
None
None
(a)
Investments,
at
cost
—
unaffiliated
..........................................
$
771,205,866
$
1,251,114,731
$
747,220,024
$
280,473,060
(b)
Securities
loaned,
at
value
................................................
$
23,308,742
$
5,203,722
$
54,100,782
$
15,809,857
(c)
Investments,
at
cost
—
affiliated
............................................
$
26,112,832
$
10,504,873
$
57,051,665
$
16,150,154
Statements
of
Operations
Year
Ended
July
31,
2023
2023
iShares
Annual
Report
to
Shareholders
44
See
notes
to
financial
statements.
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
iShares
U.S.
Equity
Factor
ETF
iShares
U.S.
Small-Cap
Equity
Factor
ETF
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
INVESTMENT
INCOME
–
–
–
–
Dividends
—
unaffiliated
.................................................
$
16,069,425
$
21,838,415
$
15,922,756
$
2,504,512
Dividends
—
affiliated
...................................................
70,468
180,172
369,900
18,530
Securities
lending
income
—
affiliated
—
net
...................................
768,152
216,260
652,137
87,978
Foreign
taxes
withheld
..................................................
—
(10,688)
(179,933)
—
Total
investment
income
...................................................
16,908,045
22,224,159
16,764,860
2,611,020
EXPENSES
Investment
advisory
....................................................
1,566,407
969,481
1,952,512
1,362,759
Total
expenses
.........................................................
1,566,407
969,481
1,952,512
1,362,759
Less:
–
–
–
–
Investment
advisory
fees
waived
...........................................
—
—
—
(340,690)
Total
expenses
after
fees
waived
.............................................
1,566,407
969,481
1,952,512
1,022,069
Net
investment
income
....................................................
15,341,638
21,254,678
14,812,348
1,588,951
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
(14,710,916)
$
144,744,445
$
74,716,026
$
87,569,505
Net
realized
gain
(loss)
from:
Investments
—
unaffiliated
.............................................
(30,753,222)
(14,052,315)
(91,245,590)
(13,064,749)
Investments
—
affiliated
...............................................
1,183
12,022
25,507
379
Capital
gain
distributions
from
underlying
funds
—
affiliated
........................
1
1
7
—
Foreign
currency
transactions
...........................................
—
(447)
—
—
Futures
contracts
....................................................
188,773
452,390
161,458
39,326
In-kind
redemptions
—
unaffiliated
(a)
.......................................
4,711,646
31,188,614
176,061,788
58,231,752
In-kind
redemptions
—
affiliated
(a)
.........................................
—
39,018
—
—
Swaps
..........................................................
—
—
(2,770,676)
—
(25,851,619)
17,639,283
82,232,494
45,206,708
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
.............................................
11,198,955
126,985,155
(6,988,976)
42,373,669
Investments
—
affiliated
...............................................
5,747
261,680
(7,609)
(954)
Futures
contracts
....................................................
(63,999)
(141,675)
(112,594)
(9,920)
Swaps
..........................................................
—
—
(407,290)
—
11,140,703
127,105,160
(7,516,469)
42,362,795
Net
realized
and
unrealized
gain
(loss)
.........................................
(14,710,916)
144,744,443
74,716,025
87,569,503
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
....................
$
630,722
$
165,999,121
$
89,528,373
$
89,158,454
(a)
See
Note
2
of
the
Notes
to
Financial
Statements.
Statements
of
Changes
in
Net
Assets
45
Financial
Statements
See
notes
to
financial
statements.
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
iShares
U.S.
Equity
Factor
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/23
Year
Ended
07/31/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
15,341,638
$
10,284,820
$
21,254,678
$
17,799,946
Net
realized
gain
(loss)
....................................................
(25,851,619)
23,374,540
17,639,283
148,688,630
Net
change
in
unrealized
appreciation
(depreciation)
................................
11,140,703
(68,944,625)
127,105,160
(204,723,793)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...........................
630,722
(35,285,265)
165,999,121
(38,235,217)
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(14,809,861)
(10,526,720)
(20,833,016)
(16,912,315)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
.................
72,297,641
(57,006,388)
113,868,885
131,646,806
NET
ASSETS
Total
increase
(decrease)
in
net
assets
...........................................
58,118,502
(102,818,373)
259,034,990
76,499,274
Beginning
of
year
..........................................................
770,167,926
872,986,299
1,171,975,605
1,095,476,331
End
of
year
..............................................................
$
828,286,428
$
770,167,926
$
1,431,010,595
$
1,171,975,605
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Statements
of
Changes
in
Net
Assets
(continued)
2023
iShares
Annual
Report
to
Shareholders
46
See
notes
to
financial
statements.
iShares
U.S.
Small-Cap
Equity
Factor
ETF
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/23
Year
Ended
07/31/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
14,812,348
$
10,649,190
$
1,588,951
$
1,624,016
Net
realized
gain
........................................................
82,232,494
99,969,663
45,206,708
11,961,329
Net
change
in
unrealized
appreciation
(depreciation)
................................
(7,516,469)
(161,097,998)
42,362,795
(119,299,251)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...........................
89,528,373
(50,479,145)
89,158,454
(105,713,906)
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(14,979,392)
(12,443,279)
(1,590,805)
(1,652,218)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
.................
(250,139,646)
36,940,830
(116,096,855)
20,767,865
NET
ASSETS
Total
decrease
in
net
assets
..................................................
(175,590,665)
(25,981,594)
(28,529,206)
(86,598,259)
Beginning
of
year
..........................................................
990,459,110
1,016,440,704
345,719,118
432,317,377
End
of
year
..............................................................
$
814,868,445
$
990,459,110
$
317,189,912
$
345,719,118
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
47
Financial
Highlights
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Year
Ended
07/31/19
Net
asset
value,
beginning
of
year
................................
$
35.91
$
37.96
$
29.91
$
34.10
$
31.53
Net
investment
income
(a)
.......................................
0.68
0.47
0.40
0.54
0.60
Net
realized
and
unrealized
gain
(loss)
(b)
.............................
(0.76
)
(2.04
)
8.09
(4.17
)
2.48
Net
increase
(decrease)
from
investment
operations
......................
(0.08
)
(1.57
)
8.49
(3.63
)
3.08
Distributions
from
net
investment
income
(c)
.............................
(0.66
)
(0.48
)
(0.44
)
(0.56
)
(0.51
)
Net
asset
value,
end
of
year
.....................................
$
35.17
$
35.91
$
37.96
$
29.91
$
34.10
Total
Return
(d)
—
—
—
—
—
Based
on
net
asset
value
........................................
(0.12
)%
(4.17
)%
28.66
%
(10.73
)%
9.91
%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
...............................................
0.20
%
0.20
%
0.20
%
0.20
%
0.20
%
Net
investment
income
..........................................
1.96
%
1.27
%
1.16
%
1.72
%
1.85
%
Supplemental
Data
Net
assets,
end
of
year
(000)
......................................
$
828,286
$
770,168
$
872,986
$
829,866
$
211,435
Portfolio
turnover
rate
(f)
..........................................
58
%
51
%
50
%
43
%
48
%
(a)
Based
on
average
shares
outstanding.
(b)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(f)
Portfolio
turnover
rate
excludes
in-kind
transactions.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
iShares
Annual
Report
to
Shareholders
48
iShares
U.S.
Equity
Factor
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Year
Ended
07/31/19
Net
asset
value,
beginning
of
year
.................................
$
41.49
$
43.64
$
32.57
$
32.13
$
33.01
Net
investment
income
(a)
........................................
0.72
0.65
0.46
0.57
0.58
Net
realized
and
unrealized
gain
(loss)
(b)
..............................
4.59
(2.19
)
11.03
0.50
(0.55
)
Net
increase
(decrease)
from
investment
operations
.......................
5.31
(1.54
)
11.49
1.07
0.03
Distributions
from
net
investment
income
(c)
..............................
(0.71
)
(0.61
)
(0.42
)
(0.63
)
(0.91
)
Net
asset
value,
end
of
year
......................................
$
46.09
$
41.49
$
43.64
$
32.57
$
32.13
Total
Return
(d)
—
—
—
—
—
Based
on
net
asset
value
.........................................
13.09
%
(3.58
)%
35.53
%
3.50
%
0.38
%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
................................................
0.08
%
0.16
%
0.20
%
0.20
%
0.20
%
Total
expenses
after
fees
waived
....................................
0.08
%
0.16
%
0.20
%
0.20
%
0.20
%
Net
investment
income
...........................................
1.75
%
1.50
%
1.20
%
1.79
%
1.84
%
Supplemental
Data
Net
assets,
end
of
year
(000)
.......................................
$
1,431,011
$
1,171,976
$
1,095,476
$
832,254
$
1,049,184
Portfolio
turnover
rate
(f)
...........................................
21
%
95
%
43
%
42
%
45
%
(a)
Based
on
average
shares
outstanding.
(b)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(f)
Portfolio
turnover
rate
excludes
in-kind
transactions.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
49
Financial
Highlights
iShares
U.S.
Small-Cap
Equity
Factor
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Year
Ended
07/31/19
Net
asset
value,
beginning
of
year
................................
$
51.72
$
54.65
$
37.38
$
40.96
$
42.97
Net
investment
income
(a)
.......................................
0.81
0.56
0.42
0.49
0.53
Net
realized
and
unrealized
gain
(loss)
(b)
.............................
4.87
(2.84
)
17.43
(3.53
)
(2.04
)
Net
increase
(decrease)
from
investment
operations
......................
5.68
(2.28
)
17.85
(3.04
)
(1.51
)
Distributions
from
net
investment
income
(c)
.............................
(0.81
)
(0.65
)
(0.58
)
(0.54
)
(0.50
)
Net
asset
value,
end
of
year
.....................................
$
56.59
$
51.72
$
54.65
$
37.38
$
40.96
Total
Return
(d)
—
—
—
—
—
Based
on
net
asset
value
........................................
11.23
%
(4.23
)%
48.13
%
(7.39
)%
(3.45
)%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
...............................................
0.21
%
0.30
%
0.30
%
0.30
%
0.30
%
Total
expenses
after
fees
waived
...................................
0.21
%
0.30
%
0.30
%
0.30
%
0.30
%
Net
investment
income
..........................................
1.58
%
1.04
%
0.87
%
1.31
%
1.31
%
Supplemental
Data
Net
assets,
end
of
year
(000)
......................................
$
814,868
$
990,459
$
1,016,441
$
540,110
$
258,075
Portfolio
turnover
rate
(f)
..........................................
108
%
46
%
46
%
48
%
45
%
(a)
Based
on
average
shares
outstanding.
(b)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(f)
Portfolio
turnover
rate
excludes
in-kind
transactions.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
iShares
Annual
Report
to
Shareholders
50
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Period
from
01/08/20
(a)
to
07/31/20
Net
asset
value,
beginning
of
period
.............................................
$
30.87
$
41.17
$
30.72
$
25.21
Net
investment
income
(b)
.....................................................
0.15
0.15
0.15
0.07
Net
realized
and
unrealized
gain
(loss)
(c)
...........................................
8.53
(10.29
)
10.48
5.60
Net
increase
(decrease)
from
investment
operations
....................................
8.68
(10.14
)
10.63
5.67
Distributions
(d)
–
–
–
–
From
net
investment
income
..................................................
(0.15
)
(0.16
)
(0.15
)
(0.16
)
From
net
realized
gain
.......................................................
—
—
(0.03
)
—
Total
distributions
...........................................................
(0.15
)
(0.16
)
(0.18
)
(0.16
)
Net
asset
value,
end
of
period
..................................................
$
39.40
$
30.87
$
41.17
$
30.72
Total
Return
(e)
—
—
—
—
Based
on
net
asset
value
......................................................
28.28
%
(24.71
)%
34.72
%
22.73
%
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.............................................................
0.40
%
0.40
%
0.40
%
0.40
%
(h)
Total
expenses
after
fees
waived
.................................................
0.30
%
0.30
%
0.30
%
0.30
%
(h)
Net
investment
income
........................................................
0.47
%
0.41
%
0.43
%
0.43
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
..................................................
$
317,190
$
345,719
$
432,317
$
344,073
Portfolio
turnover
rate
(i)
........................................................
21
%
10
%
11
%
12
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Not
annualized.
(g)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(h)
Annualized.
(i)
Portfolio
turnover
rate
excludes
in-kind
transactions.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
51
Notes
to
Financial
Statements
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”):
2.
Significant
Accounting
Policies
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates. Each
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
date
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
date
may
have
passed
are
subsequently
recorded
when
the
Funds
are
informed
of
the
ex-dividend
date.
Under
the
applicable
foreign
tax
laws,
a
withholding
tax
at
various
rates
may
be
imposed
on
capital
gains,
dividends
and
interest.
Upon
notification
from
issuers
or
as
estimated
by
management,
a
portion
of
the
dividend
income
received
from
a
real
estate
investment
trust
may
be
redesignated
as
a
reduction
of
cost
of
the
related
investment
and/or
realized
gain.
Foreign
Currency
Translation:
Each
Fund’s
books
and
records
are
maintained
in
U.S.
dollars.
Securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
using
prevailing
market
rates
as
quoted
by
one
or
more
data
service
providers.
Purchases
and
sales
of
investments
are
recorded
at
the
rates
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Generally,
when
the
U.S.
dollar
rises
in
value
against
a
foreign
currency,
the
investments
denominated
in
that
currency
will
lose
value;
the
opposite
effect
occurs
if
the
U.S.
dollar
falls
in
relative
value.
Each
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statements
of
Operations
from
the
effects
of
changes
in
market
prices
of
those
investments,
but
are
included
as
a
component
of
net
realized
and
unrealized
gain
(loss)
from
investments.
Each
Fund
reports
realized
currency
gains
(losses)
on
foreign
currency
related
transactions
as
components
of
net
realized
gain
(loss)
for
financial
reporting
purposes,
whereas
such
components
are
generally
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes.
Foreign
Taxes:
Certain
Funds
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
each
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
each
Fund
and
are
reflected
in
its Statements
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Other
foreign
taxes”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
July
31,
2023
,
if
any,
are
disclosed
in
the Statements
of
Assets
and
Liabilities.
The
Funds
file
withholding
tax
reclaims
in
certain
jurisdictions
to
recover
a
portion
of
amounts
previously
withheld.
The
Funds
may
record
a
reclaim
receivable
based
on
collectability,
which
includes
factors
such
as
the
jurisdiction’s
applicable
laws,
payment
history
and
market
convention.
The
Statements
of
Operations
include
tax
reclaims
recorded
as
well
as
professional
and
other
fees,
if
any,
associated
with
recovery
of
foreign
withholding
taxes.
Collateralization:
If
required
by
an
exchange
or
counterparty
agreement,
the Funds
may
be
required
to
deliver/deposit
cash
and/or
securities
to/with
an
exchange,
or
broker-
dealer
or
custodian
as
collateral
for
certain
investments.
In-kind
Redemptions:
For
financial
reporting
purposes,
in-kind
redemptions
are
treated
as
sales
of
securities
resulting
in
realized
capital
gains
or
losses
to
the
Funds.
Because
such
gains
or
losses
are
not
taxable
to
the
Funds
and
are
not
distributed
to
existing
Fund
shareholders,
the
gains
or
losses
are
reclassified
from
accumulated
net
realized
gain
(loss)
to
paid-in
capital
at
the
end
of
the
Funds’
tax
year.
These
reclassifications
have
no
effect
on
net
assets
or
net
asset
value
(“NAV”)
per
share.
Distributions:
Dividends
and
distributions
paid
by
each
Fund
are
recorded
on
the
ex-dividend
dates.
Distributions
are
determined
on
a
tax
basis
and
may
differ
from
net
investment
income
and
net
realized
capital
gains
for
financial
reporting
purposes.
Dividends
and
distributions
are
paid
in
U.S.
dollars
and
cannot
be
automatically
reinvested
in
additional
shares
of
the
Funds.
Indemnifications:
In
the
normal
course
of
business,
each
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Funds’
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Funds,
which
cannot
be
predicted
with
any
certainty.
iShares
ETF
Diversification
Classification
MSCI
USA
Small-Cap
Min
Vol
Factor
.......................................................................................
Diversified
U.S.
Equity
Factor
....................................................................................................
Diversified
U.S.
Small-Cap
Equity
Factor
(a)
...........................................................................................
Diversified
U.S.
Tech
Breakthrough
Multisector
........................................................................................
Diversified
(a)
Formerly
the
iShares
MSCI
USA
Small-Cap
Multifactor
ETF.
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
52
3.
Investment
Valuation
and
Fair
Value
Measurements
Investment
Valuation
Policies:
Each
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund’s
listing
exchange
is
open
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Board
of
Trustees
of
the
Trust
(the
“Board”)
of each
Fund
has
approved
the
designation
of
BlackRock
Fund
Advisors
(“BFA”),
the
Funds’
investment
adviser, as
the
valuation
designee
for
each
Fund. Each
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
BFA’s
policies.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
BFA’s policies
and
procedures as
reflecting
fair
value. BFA
has
formed
a
committee
(the
“Valuation
Committee”)
to
develop pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments,
with
assistance
from
other
BlackRock
pricing
committees.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
each
Fund’s
assets
and
liabilities:
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day’s
official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
Equity
investments
traded
on
a
recognized
exchange
for
which
there
were
no
sales
on
that
day
are valued
at
the
last
traded
price.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds)
are
valued
at
that
day’s
published
NAV.
Futures
contracts
are
valued
based
on
that
day’s
last
reported
settlement
or
trade
price
on
the
exchange
where
the
contract
is
traded.
Swap
agreements
are
valued
utilizing
quotes
received
daily
by
independent
pricing
services
or
through
brokers,
which
are
derived
using
daily
swap
curves
and
models
that
incorporate
a
number
of
market
data
factors,
such
as
discounted
cash
flows,
trades
and
values
of
the
underlying
reference
instruments.
Generally,
trading
in
foreign
instruments
is
substantially
completed
each
day
at
various
times
prior
to
the
close
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”).
Each
business
day,
the
Funds
use
current
market
factors
supplied
by
independent
pricing
services
to
value
certain
foreign
instruments
(“Systematic
Fair
Value
Price”).
The
Systematic
Fair
Value
Price
is
designed
to
value
such
foreign
securities
at
fair
value
as
of
the
close
of
trading
on
the
NYSE,
which
follows
the
close
of
the
local
markets.
If
events
(e.g.,
market
volatility,
company
announcement
or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that
application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the Valuation
Committee,
in
accordance
with
BFA’s
policies
and
procedures as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the Valuation
Committee
include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the Valuation
Committee
seeks
to
determine
the
price
that each
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm’s-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the Valuation
Committee
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
Fair
value
pricing
could
result
in
a
difference
between
the
prices
used
to
calculate
a
fund’s
NAV
and
the
prices
used
by
the
fund’s
underlying
index,
which
in
turn
could
result
in
a
difference
between
the
fund’s
performance
and
the
performance
of
the
fund’s
underlying
index.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial
reporting
purposes
as
follows:
Level
1
–
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that each
Fund
has
the
ability
to
access;
Level
2
–
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market-corroborated
inputs);
and
Level
3
–
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available,
(including
the Valuation
Committee’s
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
privately
held
companies
or
funds
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the
financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
Securities
and
Other
Investments
Securities
Lending:
Each
Fund
may
lend
its
securities
to
approved
borrowers,
such
as
brokers,
dealers
and
other
financial
institutions.
The
borrower
pledges
and
maintains
with
the
Fund
collateral
consisting
of
cash,
an
irrevocable
letter
of
credit
issued
by
an
approved
bank,
or
securities
issued
or
guaranteed
by
the
U.S.
government.
The
initial
collateral
received
by
each
Fund
is
required
to
have
a
value
of
at
least
102%
of
the
current
market
value
of
the
loaned
securities
for
securities
traded
on
U.S.
exchanges
and
a
value
of
at
least
105%
for
all
other
securities.
The
collateral
is
maintained
thereafter
at
a
value
equal
to
at
least
100%
of
the
current
value
of
the
securities
on
loan.
The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
each
business
day
of
the
Fund
and
any
additional
required
collateral
is
delivered
to
the
Fund
or
excess
collateral
is
returned
by
the
Fund,
on
the
next
business
day.
During
the
term
of
the
loan,
each
Fund
is
entitled
to
all
distributions
made
on
or
in
respect
of
the
loaned
securities
Notes
to
Financial
Statements
(continued)
53
Notes
to
Financial
Statements
but
does
not
receive
interest
income
on
securities
received
as
collateral.
Loans
of
securities
are
terminable
at
any
time
and
the
borrower,
after
notice,
is
required
to
return
borrowed
securities
within
the
standard
time
period
for
settlement
of
securities
transactions.
As
of
period
end,
any
securities
on
loan
were
collateralized
by
cash
and/or
U.S.
Government
obligations.
Cash
collateral
invested
in
money
market
funds
managed
by
BFA,
or
its
affiliates
is
disclosed
in
the
Schedule
of
Investments.
Any
non-cash
collateral
received
cannot
be
sold,
re-invested
or
pledged
by
the
Fund,
except
in
the
event
of
borrower
default.
The
securities
on
loan,
if
any,
are
also
disclosed
in
each
Fund’s
Schedule
of
Investments.
The
market
value
of
any
securities
on
loan
and
the
value
of
any
related
cash
collateral
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
Securities
lending
transactions
are
entered
into
by
the
Funds
under
Master
Securities
Lending
Agreements
(each,
an
“MSLA”)
which
provide
the
right,
in
the
event
of
default
(including
bankruptcy
or
insolvency)
for
the
non-defaulting
party
to
liquidate
the
collateral
and
calculate
a
net
exposure
to
the
defaulting
party
or
request
additional
collateral.
In
the
event
that
a
borrower
defaults,
the
Funds,
as
lender,
would
offset
the
market
value
of
the
collateral
received
against
the
market
value
of
the
securities
loaned.
When
the
value
of
the
collateral
is
greater
than
that
of
the
market
value
of
the
securities
loaned,
the
lender
is
left
with
a
net
amount
payable
to
the
defaulting
party.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
an
MSLA
counterparty’s
bankruptcy
or
insolvency.
Under
the
MSLA,
absent
an
event
of
default,
the
borrower
can
resell
or
re-pledge
the
loaned
securities,
and
the
Funds
can
reinvest
cash
collateral
received
in
connection
with
loaned
securities.
Upon
an
event
of
default,
the
parties’
obligations
to
return
the
securities
or
collateral
to
the
other
party
are
extinguished,
and
the
parties
can
resell
or
re-pledge
the
loaned
securities
or
the
collateral
received
in
connection
with
the
loaned
securities
in
order
to
satisfy
the
defaulting
party’s
net
payment
obligation
for
all
transactions
under
the
MSLA.
The
defaulting
party
remains
liable
for
any
deficiency.
As
of
period
end,
the
following
table
is
a
summary
of
the
securities
on
loan
by
counterparty
which
are
subject
to
offset
under
an
MSLA:
iShares
ETF
and
Counterparty
Securities
Loaned
at
Value
Cash
Collateral
Received
(a)
Non-Cash
Collateral
Received,
at
Fair
Value
(a)
Net
Amount
MSCI
USA
Small-Cap
Min
Vol
Factor
Barclays
Bank
PLC
.....................................
$
2,171,561
$
(2,171,561)
$
–
$
–
BNP
Paribas
SA
.......................................
2,978,361
(2,978,361)
–
–
Citadel
Clearing
LLC
....................................
23,262
(23,238)
–
24
(b)
Citigroup
Global
Markets,
Inc.
..............................
168,785
(168,785)
–
–
HSBC
Bank
PLC
......................................
198,276
(198,276)
–
–
J.P.
Morgan
Securities
LLC
...............................
8,869,223
(8,869,223)
–
–
Jefferies
LLC
.........................................
361,134
(357,575)
–
3,559
(b)
Morgan
Stanley
.......................................
7,404,051
(7,404,051)
–
–
SG
Americas
Securities
LLC
..............................
11,560
(11,560)
–
–
State
Street
Bank
&
Trust
Co.
..............................
375,820
(375,820)
–
–
Toronto-Dominion
Bank
..................................
33,694
(33,694)
–
–
UBS
AG
............................................
127,616
(127,616)
–
–
UBS
Securities
LLC
....................................
467,944
(467,944)
–
–
Wells
Fargo
Bank
N.A.
..................................
81,403
(81,403)
–
–
Wells
Fargo
Securities
LLC
...............................
36,052
(36,052)
–
–
$
23,308,742
$
(23,305,159)
$
–
$
3,583
U.S.
Equity
Factor
Barclays
Bank
PLC
.....................................
$
502,089
$
(502,089)
$
–
$
–
BofA
Securities,
Inc.
....................................
367,913
(367,913)
–
–
HSBC
Bank
PLC
......................................
480,929
(480,929)
–
–
J.P.
Morgan
Securities
LLC
...............................
57,148
(57,148)
–
–
Jefferies
LLC
.........................................
2,005,725
(2,005,725)
–
–
Scotia
Capital
(USA),
Inc.
................................
176,653
(176,653)
–
–
UBS
Securities
LLC
....................................
1,327,040
(1,327,040)
–
–
Wells
Fargo
Bank
N.A.
..................................
286,225
(286,225)
–
–
$
5,203,722
$
(5,203,722)
$
–
$
–
U.S.
Small-Cap
Equity
Factor
Barclays
Bank
PLC
.....................................
$
4,714,997
$
(4,714,997)
$
–
$
–
BNP
Paribas
SA
.......................................
3,031,033
(3,002,035)
–
28,998
(b)
BofA
Securities,
Inc.
....................................
5,511,137
(5,511,137)
–
–
Citadel
Clearing
LLC
....................................
2,876,310
(2,876,310)
–
–
Citigroup
Global
Markets,
Inc.
..............................
2,452,081
(2,380,572)
–
71,509
(b)
Goldman
Sachs
&
Co.
LLC
...............................
14,710,028
(14,710,028)
–
–
HSBC
Bank
PLC
......................................
2,769,533
(2,769,533)
–
–
J.P.
Morgan
Securities
LLC
...............................
10,107,103
(10,107,103)
–
–
Jefferies
LLC
.........................................
715,663
(715,663)
–
–
National
Financial
Services
LLC
............................
1,945,007
(1,945,007)
–
–
Natixis
SA
...........................................
83,195
(81,893)
–
1,302
(b)
RBC
Capital
Markets
LLC
................................
81
(62)
–
19
(b)
Scotia
Capital
(USA),
Inc.
................................
234,575
(234,575)
–
–
SG
Americas
Securities
LLC
..............................
2,189
(2,189)
–
–
State
Street
Bank
&
Trust
Co.
..............................
465,924
(465,924)
–
–
Toronto-Dominion
Bank
..................................
390,045
(390,045)
–
–
UBS
AG
............................................
2,280,160
(2,215,994)
–
64,166
(b)
Virtu
Americas
LLC
.....................................
922,158
(922,158)
–
–
Wells
Fargo
Bank
N.A.
..................................
539,831
(539,831)
–
–
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
54
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.
losses
are
borne
entirely
by
each
Fund.
5.
Derivative
Financial
Instruments
Futures
Contracts:
Futures
contracts
are
purchased
or
sold
to
gain
exposure
to,
or
manage
exposure
to,
changes
in
interest
rates
(interest
rate
risk)
and
changes
in
the
value
of
equity
securities
(equity
risk)
or
foreign
currencies
(foreign
currency
exchange
rate
risk).
Futures
contracts
are
exchange-traded
agreements
between
the
Funds
and
a
counterparty
to
buy
or
sell
a
specific
quantity
of
an
underlying
instrument
at
a
specified
price
and
on
a
specified
date.
Depending
on
the
terms
of
a
contract,
it
is
settled
either
through
physical
delivery
of
the
underlying
instrument
on
the
settlement
date
or
by
payment
of
a
cash
amount
on
the
settlement
date.
Upon
entering
into
a
futures
contract,
the
Funds
are
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
a
contract’s
size
and
risk
profile.
The
initial
margin
deposit
must
then
be
maintained
at
an
established
level
over
the
life
of
the
contract.
Amounts
pledged,
which
are
considered
restricted,
are
included
in
cash
pledged
for
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited,
if
any,
are
shown
as
cash
pledged
for
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Funds
agree
to
receive
from
or
pay
to
the
broker
an
amount
of
cash
equal
to
the
daily
fluctuation
in
market
value
of
the
contract
(“variation
margin”).
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and,
if
any,
shown
as
variation
margin
receivable
(or
payable)
on
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statements
of
Operations
equal
to
the
difference
between
the
notional
amount
of
the
contract
at
the
time
it
was
opened
and
the
notional
amount
at
the
time
it
was
closed.
The
use
of
futures
contracts
involves
the
risk
of
an
imperfect
correlation
in
the
movements
in
the
price
of
futures
contracts
and
interest
rates,
foreign
currency
exchange
rates
or
underlying
assets.
Swaps:
Swap
contracts
are
entered
into
to
manage
exposure
to
issuers,
markets
and
securities.
Such
contracts
are
agreements
between
the
Funds
and
a
counterparty
to
make
periodic
net
payments
on
a
specified
notional
amount
or
a
net
payment
upon
termination.
Swap
agreements
are
privately
negotiated
in
the
over-the-counter
("OTC")
market
and
may
be
entered
into
as
a
bilateral
contract
(“OTC
swaps”)
or
centrally
cleared
(“centrally
cleared
swaps”).
For
OTC
swaps,
any
upfront
premiums
paid
and
any
upfront
fees
received
are
shown
as
swap
premiums
paid
and
swap
premiums
received,
respectively,
in
the
Statements
of
Assets
and
Liabilities
and
amortized
over
the
term
of
the
contract.
The
daily
fluctuation
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
on
OTC
Swaps
in
the
Statements
of
Assets
and
Liabilities.
Payments
received
or
paid
are
recorded
in
the
Statements
of
Operations
as
realized
gains
or
losses,
respectively.
When
an
OTC
swap
is
terminated,
a
realized
gain
or
loss
is
recorded
in
the
Statements
of
Operations
equal
to
the
difference
between
the
proceeds
from
(or
cost
of)
the
closing
transaction
and
the
Funds’
basis
in
the
contract,
if
any.
Generally,
the
basis
of
the
contract
is
the
premium
received
or
paid.
Total
return
swaps
are
entered
into by
the
U.S.
Small-Cap
Equity
Factor
to
obtain
exposure
to
a
security
or
market
without
owning
such
security
or
investing
directly
in
such
market
or
to
exchange
the
risk/return
of
one
security
or
market
(e.g.,
fixed-income)
with
another
security
or
market
(e.g.,
equity
or
commodity
prices)
(equity
risk,
commodity
price
risk
and/or
interest
rate
risk).
Total
return
swaps
are
agreements
in
which
there
is
an
exchange
of
cash
flows
whereby
one
party
commits
to
make
payments
based
on
the
total
return
(distributions
plus
capital
gains/losses)
of
an
underlying
instrument,
or
basket
or
underlying
instruments,
in
exchange
for
fixed
or
floating
rate
interest
payments.
If
the
total
return
of
the
instruments
or
index
underlying
the
transaction
exceeds
or
falls
short
of
the
offsetting
fixed
or
floating
interest
rate
obligation,
the
Fund
receives
payment
from
or
makes
a
payment
to
the
counterparty.
iShares
ETF
and
Counterparty
Securities
Loaned
at
Value
Cash
Collateral
Received
(a)
Non-Cash
Collateral
Received,
at
Fair
Value
(a)
Net
Amount
U.S.
Small-Cap
Equity
Factor
(continued)
Wells
Fargo
Securities
LLC
...............................
349,732
(349,732)
–
–
$
54,100,782
$
(53,934,788)
$
–
$
165,994
U.S.
Tech
Breakthrough
Multisector
Barclays
Bank
PLC
.....................................
$
1,262,975
$
(1,262,975)
$
–
$
–
BofA
Securities,
Inc.
....................................
159,323
(150,727)
–
8,596
(b)
Citadel
Clearing
LLC
....................................
81,253
(81,253)
–
–
Citigroup
Global
Markets,
Inc.
..............................
163,088
(157,198)
–
5,890
(b)
HSBC
Bank
PLC
......................................
1,160,453
(1,160,453)
–
–
J.P.
Morgan
Securities
LLC
...............................
12,490,831
(12,347,947)
–
142,884
(b)
Jefferies
LLC
.........................................
102,690
(99,556)
–
3,134
(b)
Morgan
Stanley
.......................................
60,250
(60,250)
–
–
Toronto-Dominion
Bank
..................................
229,436
(229,436)
–
–
UBS
Securities
LLC
....................................
99,558
(99,558)
–
–
$
15,809,857
$
(15,649,353)
$
–
$
160,504
(a)
Collateral
received,
if
any,
in
excess
of
the
market
value
of
securities
on
loan
is
not
presented
in
this
table.
The
total
cash
collateral
received
by
each
Fund
is
disclosed
in
the
Fund’s
Statements
of
Assets
and
Liabilities.
(b)
The
market
value
of
the
loaned
securities
is
determined
as
of
July
31,
2023.
Additional
collateral
is
delivered
to
the
Fund
on
the
next
business
day
in
accordance
with
the
MSLA.
The
net
amount
would
be
subject
to
the
borrower
default
indemnity
in
the
event
of
default
by
the
counterparty.
Notes
to
Financial
Statements
(continued)
55
Notes
to
Financial
Statements
Certain
total
return
swaps
are
designed
to
function
as
a
portfolio
of
direct
investments
in
long
and
short
equity
positions.
This
means
that
the
Fund
has
the
ability
to
trade
in
and
out
of
these
long
and
short
positions
within
the
swap
and
will
receive
the
economic
benefits
and
risks
equivalent
to
direct
investment
in
these
positions,
subject
to
certain
adjustments
due
to
events
related
to
the
counterparty.
Benefits
and
risks
include
capital
appreciation
(depreciation),
corporate
actions
and
dividends
received
and
paid,
all
of
which
are
reflected
in
the
swap’s
market
value.
The
market
value
also
includes
interest
charges
and
credits
(“financing
fees”)
related
to
the
notional
values
of
the
long
and
short
positions
and
cash
balances
within
the
swap.
These
interest
charges
and
credits
are
based
on
a
specified
benchmark
rate
plus
or
minus
a
specified
spread
determined
based
upon
the
country
and/or
currency
of
the
positions
in
the
portfolio.
Positions
within
the
swap
and
financing
fees
are
reset
periodically.
During
a
reset,
any
unrealized
appreciation
(depreciation)
on
positions
and
accrued
financing
fees
become
available
for
cash
settlement
between
the
Fund
and
the
counterparty.
The
amounts
that
are
available
for
cash
settlement
are
recorded
as
realized
gains
or
losses
in
the
Statements
of
Operations.
Cash
settlement
in
and
out
of
the
swap
may
occur
at
a
reset
date
or
any
other
date,
at
the
discretion
of
the
Fund
and
the
counterparty,
over
the
life
of
the
agreement.
Certain
swaps
have
no
stated
expiration
and
can
be
terminated
by
either
party
at
any
time.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risks
in
excess
of
the
amounts
recognized
in
the
Statements
of
Assets
and
Liabilities.
Such
risks
involve
the
possibility
that
there
will
be
no
liquid
market
for
these
agreements,
that
the
counterparty
to
the
agreements
may
default
on
its
obligation
to
perform
or
disagree
as
to
the
meaning
of
the
contractual
terms
in
the
agreements,
and
that
there
may
be
unfavorable
changes
in
interest
rates
and/or
market
values
associated
with
these
transactions.
Master
Netting
Arrangements:
In
order
to
define
its
contractual
rights
and
to
secure
rights
that
will
help
mitigate
its
counterparty
risk,
a
Fund
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
its
derivative
contract
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between
a
Fund
and
a
counterparty
that
governs
certain
OTC
derivatives
and
typically
contains,
among
other
things,
collateral
posting
terms
and
netting
provisions
in
the
event
of
a
default
and/or
termination
event.
Under
an
ISDA
Master
Agreement,
a
Fund
may,
under
certain
circumstances,
offset
with
the
counterparty
certain
derivative
financial
instruments’
payables
and/or
receivables
with
collateral
held
and/or
posted
and
create
one
single
net
payment.
The
provisions
of
the
ISDA
Master
Agreement
typically
permit
a
single
net
in
the
event
of
default
including
the
bankruptcy
or
insolvency
of
the
counterparty.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
the
right
of
offset
in
bankruptcy,
insolvency,
or
other
events.
For
derivatives
traded
under
an
ISDA
Master
Agreement,
the
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement,
and
comparing
that
amount
to
the
value
of
any
collateral
currently
pledged
by
a
fund
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
obligations
of
the
Funds
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statements
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
and
cash
received
as
collateral,
respectively.
Non-cash
collateral
pledged
by
the
Funds,
if
any,
is
noted
in
the
Schedules
of
Investments.
Generally,
the
amount
of
collateral
due
from
or
to
a
counterparty
is
subject
to
a
certain
minimum
transfer
amount
threshold
before
a
transfer
is
required,
which
is
determined
at
the
close
of
business
of
the
Funds.
Any
additional
required
collateral
is
delivered
to/pledged
by
the
Funds
on
the
next
business
day.
Typically,
the
counterparty
is
not
permitted
to
sell,
re-pledge
or
use
cash
and
non-cash
collateral
it
receives.
A
fund
generally
agrees
not
to
use
non-cash
collateral
that
it
receives
but
may,
absent
default
or
certain
other
circumstances
defined
in
the
underlying
ISDA
Master
Agreement,
be
permitted
to
use
cash
collateral
received.
In
such
cases,
interest
may
be
paid
pursuant
to
the
collateral
arrangement
with
the
counterparty.
To
the
extent
amounts
due
to
the
Funds
from
the
counterparty
are
not
fully
collateralized,
each
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
Likewise,
to
the
extent
the
Funds
have
delivered
collateral
to
a
counterparty
and
stand
ready
to
perform
under
the
terms
of their
agreement
with
such
counterparty,
each
Fund
bears
the
risk
of
loss
from
a
counterparty
in
the
amount
of
the
value
of
the
collateral
in
the
event
the
counterparty
fails
to
return
such
collateral.
Based
on
the
terms
of
agreements,
collateral
may
not
be
required
for
all
derivative
contracts.
For
financial
reporting
purposes,
each
Fund
does
not
offset
derivative
assets
and
derivative
liabilities
that
are
subject
to
netting
arrangements,
if
any,
in
the
Statements
of
Assets
and
Liabilities.
6.
Investment
Advisory
Agreement
and
Other
Transactions
with
Affiliates
Investment
Advisory
Fees:
Pursuant
to
an
Investment
Advisory
Agreement
with
the
Trust
,
BFA
manages
the
investment
of each
Fund’s
assets.
BFA
is
a
California
corporation
indirectly owned
by
BlackRock. Under
the
Investment
Advisory
Agreement,
BFA
is
responsible
for
substantially
all
expenses
of
the
Funds,
except
(
i
)
interest
and
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:
Effective
December
16,
2022,
for
its
investment
advisory
services
to
the
iShares
U.S.
Small-Cap Equity
Factor ETF,
BFA
is
entitled
to
an
annual
investment
advisory
fee
of
0.15%,
accrued
daily
and
paid
monthly
by
the
Fund,
based
on
the
average
daily
net
assets
of
the
Fund.
Prior
to
December
16,
2022,
BFA
was
entitled
to
an
annual
investment
advisory
fee
of
0.30%,
accrued
daily
and
paid
monthly
by
the
Fund,
based
on
the
average
daily
net
assets
of
the
Fund.
Expense
Waivers
:
BFA
may
from
time
to
time
voluntarily
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
total
annual
fund
operating
expenses
(excluding
acquired
fund
fees
and
expenses,
if
any). For
the
iShares
U.S.
Tech
Breakthrough
Multisector
ETF,
BFA
has
elected
to
implement
a
voluntary
fee
waiver
in
order
to
limit
the
Fund’s
total
annual
operating
expenses
after
fee
waiver
to
0.30%,
and
currently
intends
to
keep
such
voluntary
fee
waiver
for
the
Fund
in
place
through
December
31,
2023.
Any
such
voluntary
waiver
or
reimbursement
may
be
eliminated
by
BFA
at
any
time.
iShares
ETF
Investment
Advisory
Fees
MSCI
USA
Small-Cap
Min
Vol
Factor
....................................................................................
0.20
%
U.S.
Equity
Factor
.................................................................................................
0.08
U.S.
Small-Cap
Equity
Factor
.........................................................................................
0.15
U.S.
Tech
Breakthrough
Multisector
.....................................................................................
0.40
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
56
These
amounts are
included
in
investment
advisory
fees
waived
in
the
Statements
of
Operations.
For
the
year ended July
31,
2023,
the
amounts
waived
in
investment
advisory
fees
pursuant
to
this
arrangement
were
as
follows:
Distributor:
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
BFA,
is
the
distributor
for
each
Fund.
Pursuant
to
the
distribution
agreement,
BFA
is
responsible
for
any
fees
or
expenses
for
distribution
services
provided
to
the
Funds.
ETF
Servicing
Fees:
Each
Fund
has
entered
into
an
ETF
Services
Agreement
with
BRIL
to
perform
certain
order
processing,
Authorized
Participant
communications,
and
related
services
in
connection
with
the
issuance
and
redemption
of
Creation
Units
(“ETF
Services”).
BRIL
is
entitled
to
a
transaction
fee
from
Authorized
Participants
on
each
creation
or
redemption
order
for
the
ETF
Services
provided. The Funds
do
not
pay
BRIL
for
ETF
Services.
Securities
Lending:
The
U.S.
Securities
and
Exchange
Commission
(the
“SEC”)
has
issued
an
exemptive
order
which
permits
BlackRock
Institutional
Trust
Company,
N.A.
(“BTC”),
an
affiliate
of
BFA,
to
serve
as
securities
lending
agent
for
the
Funds,
subject
to
applicable
conditions.
As
securities
lending
agent,
BTC
bears
all
operational
costs
directly
related
to
securities
lending,
including
any
custodial
costs.
Each
Fund
is
responsible
for
fees
in
connection
with
the
investment
of
cash
collateral
received
for
securities
on
loan
(the
“collateral
investment
fees”).
The
cash
collateral
is
invested
in
a
money
market
fund,
BlackRock
Cash
Funds:
Institutional
or
BlackRock
Cash
Funds:
Treasury,
managed
by
BFA,
or
its
affiliates.
However,
BTC
has
agreed
to
reduce
the
amount
of
securities
lending
income
it
receives
in
order
to
effectively
limit
the
collateral
investment
fees
each
Fund
bears
to
an
annual
rate
of
0.04%.
The
SL
Agency
Shares
of
such
money
market
fund
will
not
be
subject
to
a
sales
load,
distribution
fee
or
service
fee.
The
money
market
fund
in
which
the
cash
collateral
has
been
invested
may,
under
certain
circumstances,
impose
a
liquidity
fee
of
up
to
2%
of
the
value
redeemed
or
temporarily
restrict
redemptions
for
up
to
10
business
days
during
a
90
day
period,
in
the
event
that
the
money
market
fund’s
weekly
liquid
assets
fall
below
certain
thresholds.
Securities
lending
income
is
equal
to
the
total
of
income
earned
from
the
reinvestment
of
cash
collateral,
net
of
fees
and
other
payments
to
and
from
borrowers
of
securities,
and
less
the
collateral
investment
fees.
Each
Fund
retains
a
portion
of
securities
lending
income
and
remits
the
remaining
portion
to
BTC
as
compensation
for
its
services
as
securities
lending
agent.
Pursuant
to
the
current
securities
lending
agreement,
each
Fund
retains
81%
of
securities
lending
income
(which
excludes
collateral
investment
fees)
and
the
amount
retained
can
never
be
less
than
70%
of
the
total
of
securities
lending
income
plus
the
collateral
investment
fees.
In
addition,
commencing
the
business
day
following
the
date
that
the
aggregate
securities
lending
income
plus
the
collateral
investment
fees
generated
across
all
1940
Act
iShares
exchange-traded
funds
(the
“iShares
ETF
Complex”)
in
that
calendar
year
exceeds
a
specified
threshold,
each
Fund,
pursuant
to
the
securities
lending
agreement,
will
retain
for
the
remainder
of
that
calendar
year
81%
of
securities
lending
income
(which
excludes
collateral
investment
fees),
and
the
amount
retained
can
never
be
less
than
70%
of
the
total
of
securities
lending
income
plus
the
collateral
investment
fees.
The
share
of
securities
lending
income
earned
by each
Fund
is
shown
as
securities
lending
income
–
affiliated
–
net
in
its
Statements
of
Operations.
For
the year ended
July
31,
2023,
the
Funds
paid
BTC
the
following
amounts
for
securities
lending
agent
services:
Officers
and
Trustees:
Certain
officers
and/or
trustees
of
the
Trust
are
officers
and/or
trustees
of
BlackRock
or
its
affiliates.
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 year ended July
31,
2023,
transactions
executed
by
the
Funds
pursuant
to
Rule
17a-7
under
the
1940
Act
were
as
follows:
Each
Fund
may
invest
its
positive
cash
balances
in
certain
money
market
funds
managed
by
BFA
or
an
affiliate.
The
income
earned
on
these
temporary
cash
investments
is
shown
as
dividends
–
affiliated
in
the
Statements
of
Operations.
A
fund,
in
order
to
improve
its
portfolio
liquidity
and
its
ability
to
track
its
underlying
index,
may
invest
in
shares
of
other
iShares
funds
that
invest
in
securities
in
the
fund’s
underlying
index.
iShares
ETF
Amounts
Waived
U.S.
Tech
Breakthrough
Multisector
........................................................................................
$
340,690
iShares
ETF
Amounts
MSCI
USA
Small-Cap
Min
Vol
Factor
...........................................................................................
$
192,838
U.S.
Equity
Factor
........................................................................................................
56,935
U.S.
Small-Cap
Equity
Factor
................................................................................................
178,122
U.S.
Tech
Breakthrough
Multisector
............................................................................................
25,763
iShares
ETF
Purchases
Sales
Net
Realized
Gain
(Loss)
MSCI
USA
Small-Cap
Min
Vol
Factor
........................................................
$
21,687,439
$
76,748,066
$
5,708,841
U.S.
Equity
Factor
.....................................................................
89,883,548
85,344,357
(7,625,069)
U.S.
Small-Cap
Equity
Factor
.............................................................
111,998,313
109,159,924
(947,963)
U.S.
Tech
Breakthrough
Multisector
.........................................................
33,408,296
32,786,080
(5,578,957)
Notes
to
Financial
Statements
(continued)
57
Notes
to
Financial
Statements
7.
Purchases
and
Sales
For
the year ended
July
31,
2023,
purchases
and
sales
of
investments,
excluding
short-term securities
and
in-kind
transactions,
were
as
follows:
For
the year ended
July
31,
2023,
in-kind
transactions
were
as
follows:
8.
Income
Tax
Information
Each
Fund
is
treated
as
an
entity
separate
from
the
Trust’s other
funds
for
federal
income
tax
purposes.
It
is
each
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the
Funds
as
of
July
31,
2023,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Funds’ financial
statements.
U.S.
GAAP
requires
that
certain
components
of
net
assets
be
adjusted
to
reflect
permanent
differences
between
financial
and
tax
reporting.
These
reclassifications
have
no
effect
on
net
assets
or
NAV
per
share.
As
of July
31,
2023,
permanent
differences
attributable
to
realized
gains
(losses)
from
in-kind
redemptions
were
reclassified
to
the
following
accounts:
The
tax
character
of
distributions
paid
was
as
follows:
As
of
July
31,
2023,
the
tax
components
of
accumulated
net
earnings
(losses)
were
as
follows:
iShares
ETF
Purchases
Sales
MSCI
USA
Small-Cap
Min
Vol
Factor
........................................................................
$
456,959,138
$
451,333,830
U.S.
Equity
Factor
.....................................................................................
255,724,288
253,747,435
U.S.
Small-Cap
Equity
Factor
.............................................................................
1,054,917,043
1,036,527,955
U.S.
Tech
Breakthrough
Multisector
.........................................................................
71,085,458
70,397,619
iShares
ETF
In-kind
Purchases
In-kind
Sales
MSCI
USA
Small-Cap
Min
Vol
Factor
........................................................................
$
92,005,103
$
23,200,514
U.S.
Equity
Factor
.....................................................................................
305,256,391
191,790,301
U.S.
Small-Cap
Equity
Factor
.............................................................................
540,272,785
805,107,429
U.S.
Tech
Breakthrough
Multisector
.........................................................................
35,679,354
152,442,175
iShares
ETF
Paid-In
Capital
Accumulated
Earnings
(Loss)
MSCI
USA
Small-Cap
Min
Vol
Factor
.............................................................
$
4,710,727
$
(4,710,727)
U.S.
Equity
Factor
..........................................................................
31,170,921
(31,170,921)
U.S.
Small-Cap
Equity
Factor
..................................................................
174,367,554
(174,367,554)
U.S.
Tech
Breakthrough
Multisector
..............................................................
58,231,606
(58,231,606)
—
iShares
ETF
Year
Ended
07/31/23
Year
Ended
07/31/22
MSCI
USA
Small-Cap
Min
Vol
Factor
Ordinary
income
...........................................................................................
$
14,809,861
$
10,526,720
U.S.
Equity
Factor
Ordinary
income
...........................................................................................
$
20,833,016
$
16,912,315
U.S.
Small-Cap
Equity
Factor
Ordinary
income
...........................................................................................
$
14,979,392
$
12,443,279
U.S.
Tech
Breakthrough
Multisector
Ordinary
income
...........................................................................................
$
1,590,805
$
1,652,218
iShares
ETF
Undistributed
Ordinary
Income
Non-Expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Qualified
Late-
Year
Losses
(c)
Total
MSCI
USA
Small-Cap
Min
Vol
Factor
.........................
$
757,534
$
(119,139,198)
$
53,405,249
$
—
$
(64,976,415)
U.S.
Equity
Factor
......................................
2,412,794
(103,335,460)
171,408,531
—
70,485,865
U.S.
Small-Cap
Equity
Factor
..............................
—
(107,699,072)
52,755,431
(1,773,671)
(56,717,312)
U.S.
Tech
Breakthrough
Multisector
..........................
31,398
(20,026,677)
35,600,068
—
15,604,789
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
difference
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
was
attributable
primarily
to
the
tax
deferral
of
losses
on
wash
sales,
the
realization
for
tax
purposes
of
unrealized
gains
(losses)
on
certain
futures
contracts,
the
realization
for
tax
purposes
of
unrealized
gains
on
investments
in
passive
foreign
investment
companies
and
the
accounting
for
swap
agreements.
(c)
The
Funds
have
elected
to
defer
certain
qualified
late-year
losses
and
recognize
such
losses
in
the
next
taxable
year.
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
58
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
July
31,
2023,
gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
9.
Principal
Risks
In
the
normal
course
of
business,
each
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including,
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
or
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Funds
and
their
investments.
Each
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
BFA
uses
a
“passive”
or
index
approach
to
try
to
achieve
each
Fund’s
investment
objective
following
the
securities
included
in
its
underlying
index
during
upturns
as
well
as
downturns.
BFA
does
not
take
steps
to
reduce
market
exposure
or
to
lessen
the
effects
of
a
declining
market.
Divergence
from
the
underlying
index
and
the
composition
of
the
portfolio
is
monitored
by
BFA.
The
Funds
may
be
exposed
to
additional
risks
when
reinvesting
cash
collateral
in
money
market
funds
that
do
not
seek
to
maintain
a
stable
NAV
per
share
of
$1.00,
which
may
be
subject
to
redemption
gates
or
liquidity
fees
under
certain
circumstances.
Infectious
Illness
Risk:
An
outbreak
of
an
infectious
illness,
such
as
the
COVID-19
pandemic,
may
adversely
impact
the
economies
of
many
nations
and
the
global
economy,
and
may
impact
individual
issuers
and
capital
markets
in
ways
that
cannot
be
foreseen.
An
infectious
illness
outbreak
may
result
in,
among
other
things,
closed
international
borders,
prolonged
quarantines,
supply
chain
disruptions,
market
volatility
or
disruptions
and
other
significant
economic,
social
and
political
impacts.
Valuation
Risk:
The
market
values
of
equities,
such
as
common
stocks
and
preferred
securities
or
equity
related
investments,
such
as
futures
and
options,
may
decline
due
to
general
market
conditions
which
are
not
specifically
related
to
a
particular
company.
They
may
also
decline
due
to
factors
which
affect
a
particular
industry
or
industries.
A
fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that
a
fund
reasonably
expects
cannot
be
sold
or
disposed
of
in
current
market
conditions
in
seven
calendar
days
or
less
without
the
sale
or
disposition
significantly
changing
the
market
value
of
the
investment.
A
fund
may
experience
difficulty
in
selling
illiquid
investments
in
a
timely
manner
at
the
price
that
it
believes
the
investments
are
worth.
Prices
may
fluctuate
widely
over
short
or
extended
periods
in
response
to
company,
market
or
economic
news.
Markets
also
tend
to
move
in
cycles,
with
periods
of
rising
and
falling
prices.
This
volatility
may
cause
a
fund’s
NAV
to
experience
significant
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of
a
fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which
a
fund
invests.
The
price
each
Fund
could
receive
upon
the
sale
of
any
particular
portfolio
investment
may
differ
from
each
Fund’s
valuation
of
the
investment,
particularly
for
securities
that
trade
in
thin
or
volatile
markets
or
that
are
valued
using
a
fair
valuation
technique
or
a
price
provided
by
an
independent
pricing
service.
Changes
to
significant
unobservable
inputs
and
assumptions
(i.e.,
publicly
traded
company
multiples,
growth
rate,
time
to
exit)
due
to
the
lack
of
observable
inputs.
Counterparty
Credit
Risk:
The
Funds
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Funds
manage
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that BFA
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Funds
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Funds’
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statements
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Funds.
A
derivative
contract
may
suffer
a
mark-to-market
loss
if
the
value
of
the
contract
decreases
due
to
an
unfavorable
change
in
the
market
rates
or
values
of
the
underlying
instrument.
Losses
can
also
occur
if
the
counterparty
does
not
perform
under
the
contract.
With
exchange-traded
futures,
there
is
less
counterparty
credit
risk
to
the
Funds
since
the
exchange
or
clearinghouse,
as
counterparty
to
such
instruments,
guarantees
against
a
possible
default.
The
clearinghouse
stands
between
the
buyer
and
the
seller
of
the
contract;
therefore,
credit
risk
is
limited
to
failure
of
the
clearinghouse.
While
offset
rights
may
exist
under
applicable
law, a
fund
does
not
have
a
contractual
right
of
offset
against
a
clearing
broker
or
clearinghouse
in
the
event
of
a
default
(including
the
bankruptcy
or
insolvency).
Additionally,
credit
risk
exists
in
exchange-traded
futures with
respect
to
initial
and
variation
margin
that
is
held
in
a
clearing
broker’s
customer
accounts.
While
clearing
brokers
are
required
to
segregate
customer
margin
from
their
own
assets,
in
the
event
that
a
clearing
broker
becomes
insolvent
or
goes
into
bankruptcy
and
at
that
time
there
is
a
shortfall
in
the
aggregate
amount
of
margin
held
by
the
clearing
broker
for
all
its
clients,
typically
the
shortfall
would
be
allocated
on
a
pro
rata
basis
across
all
the
clearing
broker’s
customers,
potentially
resulting
in
losses
to
the
Funds.
Geographic/Asset
Class
Risk:
A
diversified
portfolio,
where
this
is
appropriate
and
consistent
with
a
fund’s
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
each
Fund’s
portfolio
are
disclosed
in
its
Schedule
of
Investments.
iShares
ETF
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
MSCI
USA
Small-Cap
Min
Vol
Factor
....................................
$
799,575,665
$
102,349,815
$
(48,944,566)
$
53,405,249
U.S.
Equity
Factor
.................................................
1,263,370,331
211,257,205
(39,848,674)
171,408,531
U.S.
Small-Cap
Equity
Factor
.........................................
816,024,106
102,002,756
(49,247,325)
52,755,431
U.S.
Tech
Breakthrough
Multisector
.....................................
297,337,542
65,696,336
(30,096,268)
35,600,068
Notes
to
Financial
Statements
(continued)
59
Notes
to
Financial
Statements
The
Funds
invest
a
significant
portion
of
their
assets
in
securities
of
issuers
located
in
the
United
States.
A
decrease
in
imports
or
exports,
changes
in
trade
regulations,
inflation
and/or
an
economic
recession
in
the
United
States
may
have
a
material
adverse
effect
on
the
U.S.
economy
and
the
securities
listed
on
U.S.
exchanges.
Proposed
and
adopted
policy
and
legislative
changes
in
the
United
States
may
also
have
a
significant
effect
on
U.S.
markets
generally,
as
well
as
on
the
value
of
certain
securities.
Governmental
agencies
project
that
the
United
States
will
continue
to
maintain
elevated
public
debt
levels
for
the
foreseeable
future
which
may
constrain
future
economic
growth.
Circumstances
could
arise
that
could
prevent
the
timely
payment
of
interest
or
principal
on
U.S.
government
debt,
such
as
reaching
the
legislative
“debt
ceiling.”
Such
non-payment
would
result
in
substantial
negative
consequences
for
the
U.S.
economy
and
the
global
financial
system.
If
U.S.
relations
with
certain
countries
deteriorate,
it
could
adversely
affect
issuers
that
rely
on
the
United
States
for
trade.
The
United
States
has
also
experienced
increased
internal
unrest
and
discord.
If
these
trends
were
to
continue,
they
may
have
an
adverse
impact
on
the
U.S.
economy
and
the
issuers
in
which
the Funds
invest.
Certain
Funds
invest
a
significant
portion
of
their
assets
in
securities
within
a
single
or
limited
number
of
market
sectors.
When
a
fund
concentrates
its
investments
in
this
manner,
it
assumes
the
risk
that
economic,
regulatory,
political
and
social
conditions
affecting
such
sectors
may
have
a
significant
impact
on
the
fund
and
could
affect
the
income
from,
or
the
value
or
liquidity
of,
the
fund’s
portfolio.
Investment
percentages
in
specific
sectors
are
presented
in
the
Schedule
of
Investments.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund’s
NAV,
increase
the
fund’s
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
10.
Capital
Share
Transactions
Capital
shares
are
issued
and
redeemed
by
each
Fund
only
in
aggregations
of
a
specified
number
of
shares
or
multiples
thereof
(“Creation
Units”)
at
NAV.
Except
when
aggregated
in
Creation
Units,
shares
of
each
Fund
are
not
redeemable.
Transactions
in
capital
shares
were
as
follows:
The
consideration
for
the
purchase
of
Creation
Units
of
a
fund
in
the Trust
generally
consists
of
the
in-kind
deposit
of
a
designated
portfolio
of
securities
and
a
specified
amount
of
cash.
Certain
funds
in
the Trust
may
be
offered
in
Creation
Units
solely
or
partially
for
cash
in
U.S.
dollars.
Investors
purchasing
and
redeeming
Creation
Units
may
pay
a
purchase
transaction
fee
and
a
redemption
transaction
fee
directly
to
BRIL,
to
offset
transfer
and
other
transaction
costs
associated
with
the
issuance
and
redemption
of
Creation
Units,
including
Creation
Units
for
cash.
Investors
transacting
in
Creation
Units
for
cash
may
also
pay
an
additional
variable
charge
to
compensate
the
relevant
fund
for
certain
transaction
costs
(i.e.,
stamp
taxes,
taxes
on
currency
or
other
financial
transactions,
and
brokerage
costs)
and
market
impact
expenses
relating
to
investing
in
portfolio
securities.
Such
variable
charges,
if
any,
are
included
in
shares
sold
in
the
table
above.
From
time
to
time,
settlement
of
securities
related
to
in-kind
contributions
or
in-kind
redemptions
may
be
delayed.
In
such
cases,
securities
related
to
in-kind
transactions
are
reflected
as
a
receivable
or
a
payable
in
the
Statements
of
Assets
and
Liabilities.
Year
Ended
07/31/23
Year
Ended
07/31/22
iShares
ETF
Shares
Amount
Shares
Amount
MSCI
USA
Small-Cap
Min
Vol
Factor
Shares
sold
2,800,000
$
96,635,404
3,800,000
$
142,110,395
Shares
redeemed
(700,000
)
(24,337,763
)
(5,350,000
)
(199,116,783
)
2,100,000
$
72,297,641
(1,550,000
)
$
(57,006,388
)
U.S.
Equity
Factor
Shares
sold
7,600,000
$
306,932,271
15,650,000
$
661,128,396
Shares
redeemed
(4,800,000
)
(193,063,386
)
(12,500,000
)
(529,481,590
)
2,800,000
$
113,868,885
3,150,000
$
131,646,806
U.S.
Small-Cap
Equity
Factor
Shares
sold
10,700,000
$
567,660,550
5,650,000
$
308,921,820
Shares
redeemed
(15,450,000
)
(817,800,196
)
(5,100,000
)
(271,980,990
)
(4,750,000
)
$
(250,139,646
)
550,000
$
36,940,830
U.S.
Tech
Breakthrough
Multisector
Shares
sold
950,000
$
35,779,584
2,150,000
$
74,576,481
Shares
redeemed
(4,100,000
)
(151,876,439
)
(1,450,000
)
(53,808,616
)
(3,150,000
)
$
(116,096,855
)
700,000
$
20,767,865
Notes
to
Financial
Statements
(continued)
2023
iShares
Annual
Report
to
Shareholders
60
11.
Subsequent
Events
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Funds
through
the
date
the
financial
statements
were
available
to
be
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Report
of
Independent
Registered
Public
Accounting
Firm
61
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Board
of
Trustees
of
iShares
Trust
and
Shareholders
of
each
of
the four
funds
listed
in
the
table
below
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
each
of
the
funds
listed in
the
table
below
(four
funds
constituting
iShares
Trust,
hereafter
collectively
referred
to
as
the “Funds”)
as
of
July
31,
2023,
the
related
statements
of
operations
for
the
year
ended
July
31,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2023,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
July
31,
2023,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2023
and
each
of
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
July
31,
2023
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
/s/PricewaterhouseCoopers
LLP
Philadelphia,
Pennsylvania
September
22,
2023
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
2000.
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF
iShares
U.S.
Equity
Factor
ETF
iShares
U.S.
Small-Cap
Equity
Factor
ETF
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
Important
Tax
Information
(Unaudited)
2023
iShares
Annual
Report
to
Shareholders
62
The
following
amounts,
or
maximum
amounts
allowable
by
law,
are
hereby
designated
as
qualified
dividend
income
for
individuals
for
the
fiscal
year
ended
July
31,
2023:
The
following
amounts,
or
maximum
amounts
allowable
by
law,
are
hereby
designated
as
qualified business
income
for
individuals
for
the
fiscal
year
ended
July
31,
2023:
The
following
percentages,
or
maximum
percentages
allowable
by
law,
of
ordinary
income
distributions
paid
during
the
fiscal
year
ended July
31,
2023
qualified
for
the
dividends-received
deduction
for
corporate
shareholders:
iShares
ETF
Qualified
Dividend
Income
MSCI
USA
Small-Cap
Min
Vol
Factor
.....................................................................................
$
12,634,007
U.S.
Equity
Factor
..................................................................................................
20,570,103
U.S.
Small-Cap
Equity
Factor
..........................................................................................
12,222,710
U.S.
Tech
Breakthrough
Multisector
......................................................................................
2,314,835
iShares
ETF
Qualified
Business
Income
MSCI
USA
Small-Cap
Min
Vol
Factor
.....................................................................................
$
848,329
U.S.
Equity
Factor
..................................................................................................
356,274
U.S.
Small-Cap
Equity
Factor
..........................................................................................
309,332
U.S.
Tech
Breakthrough
Multisector
......................................................................................
38,268
iShares
ETF
Dividends-Received
Deduction
MSCI
USA
Small-Cap
Min
Vol
Factor
.......................................................................................
80.54
%
U.S.
Equity
Factor
....................................................................................................
95.27
U.S.
Small-Cap
Equity
Factor
............................................................................................
85.62
U.S.
Tech
Breakthrough
Multisector
........................................................................................
100.00
Board
Review
and
Approval
of
Investment
Advisory
Contract
63
Board
Review
and
Approval
of
Investment
Advisory
Contract
iShares
MSCI
USA
Small-Cap
Min
Vol
Factor
ETF,
iShares
U.S.
Equity
Factor
ETF,
iShares
U.S.
Small-Cap
Equity
Factor
ETF
(each
the
“Fund”)
Under
Section
15(c)
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Trust’s
Board
of
Trustees
(the
“Board”),
including
a
majority
of
Board
Members
who
are
not
“interested
persons”
of
the
Trust
(as
that
term
is
defined
in
the
1940
Act)
(the
“Independent
Board
Members”),
is
required
annually
to
consider
the
approval
of
the
Investment
Advisory
Agreement
between
the
Trust
and
BFA
(the
“Advisory
Agreement”)
on
behalf
of
the
Fund.
The
Board’s
consideration
entails
a
year-long
process
whereby
the
Board
and
its
committees
(composed
solely
of
Independent
Board
Members)
assess
BlackRock’s
services
to
the
Fund,
including
investment
management;
fund
accounting;
administrative
and
shareholder
services;
oversight
of
the
Fund’s
service
providers;
risk
management
and
oversight;
legal
and
compliance
services;
and
ability
to
meet
applicable
legal
and
regulatory
requirements.
The
Independent
Board
Members
requested,
and
BFA
provided,
such
information
as
the
Independent
Board
Members,
with
advice
from
independent
counsel,
deemed
reasonably
necessary
to
evaluate
the
Advisory
Agreement.
At
meetings
on
May
2,
2023
and
May
15,
2023,
a
committee
composed
of
all
of
the
Independent
Board
Members
(the
“15(c)
Committee”),
with
independent
counsel,
met
with
management
and
reviewed
and
discussed
information
provided
in
response
to
initial
requests
of
the
15(c)
Committee
and/or
its
independent
counsel,
and
requested
certain
additional
information,
which
management
agreed
to
provide.
At
a
meeting
held
on
June
7-8,
2023,
the
Board,
including
the
Independent
Board
Members,
reviewed
the
additional
information
provided
by
management
in
response
to
these
requests.
After
extensive
discussions
and
deliberations,
the
Board,
including
all
of
the
Independent
Board
Members,
approved
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
based
on
a
review
of
qualitative
and
quantitative
information
provided
by
BFA
and
their
cumulative
experience
as
Board
Members.
The
Board
noted
its
satisfaction
with
the
extent
and
quality
of
information
provided
and
its
frequent
interactions
with
management,
as
well
as
the
detailed
responses
and
other
information
provided
by
BFA.
The
Independent
Board
Members
were
advised
by
their
independent
counsel
throughout
the
process,
including
about
the
legal
standards
applicable
to
their
review.
In
approving
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
the
Board,
including
the
Independent
Board
Members,
considered
various
factors,
including:
(i)
the
expenses
and
performance
of
the
Fund;
(ii)
the
nature,
extent
and
quality
of
the
services
provided
by
BFA;
(iii)
the
costs
of
services
provided
to
the
Fund
and
profits
realized
by
BFA
and
its
affiliates;
(iv)
potential
economies
of
scale
and
the
sharing
of
related
benefits;
(v)
the
fees
and
services
provided
for
other
comparable
funds/accounts
managed
by
BFA
and
its
affiliates;
and
(vi)
other
benefits
to
BFA
and/or
its
affiliates.
The
material
factors,
none
of
which
was
controlling,
and
conclusions
that
formed
the
basis
for
the
Board,
including
the
Independent
Board
Members,
to
approve
the
continuance
of
the
Advisory
Agreement
are
discussed
below.
Expenses
and
Performance
of
the
Fund:
The
Board
reviewed
statistical
information
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
an
independent
provider
of
investment
company
data,
regarding
the
expense
ratio
components,
including
gross
and
net
total
expenses,
fees
and
expenses
of
other
fund(s)
in
which
the
Fund
invests
(if
applicable),
and
waivers/reimbursements
(if
applicable)
of
the
Fund
in
comparison
with
the
same
information
for
other
ETFs,
objectively
selected
by
Broadridge
as
comprising
the
Fund’s
applicable
expense
peer
group
pursuant
to
Broadridge’s
proprietary
ETF
methodology
(the
“Peer
Group”).
The
Board
was
provided
with
a
detailed
description
of
the
proprietary
ETF
methodology
used
by
Broadridge
to
determine
the
Fund’s
Peer
Group.
The
Board
noted
that,
due
to
the
limitations
in
providing
comparable
funds
in
the
Peer
Group,
the
statistical
information
provided
in
Broadridge’s
report
may
or
may
not
provide
meaningful
direct
comparisons
to
the
Fund
in
all
instances.
The
Board
also
noted
that
the
investment
advisory
fee
rate
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
for
the
Fund
were
lower
than
the
median
of
the
investment
advisory
fee
rates
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
of
the
funds
in
its
Peer
Group,
excluding
iShares
funds.
In
addition,
to
the
extent
that
any
of
the
comparison
funds
included
in
the
Peer
Group,
excluding
iShares
funds,
track
the
same
index
as
the
Fund,
Broadridge
also
provided,
and
the
Board
reviewed,
a
comparison
of
the
Fund’s
performance
for
the
one-year,
three-year,
five-year,
ten-year,
and
since
inception
periods,
as
applicable,
and
for
the
quarter
ended
December
31,
2022,
to
that
of
such
relevant
comparison
fund(s)
for
the
same
periods.
The
Board
noted
that
the
Fund
seeks
to
track
its
specified
underlying
index
and
that,
during
the
year,
the
Board
received
periodic
reports
on
the
Fund’s
short-
and
longer-term
performance
in
comparison
with
its
underlying
index.
Such
periodic
comparative
performance
information,
including
additional
detailed
information
as
requested
by
the
Board,
was
also
considered.
The
Board
noted
that
the
Fund
generally
performed
in
line
with
its
underlying
index
over
the
relevant
periods.
Based
on
this
review,
the
other
factors
considered
at
the
meeting,
and
their
general
knowledge
of
ETF
pricing,
the
Board
concluded
that
the
investment
advisory
fee
rate
and
expense
level
and
the
historical
performance
of
the
Fund
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Nature,
Extent
and
Quality
of
Services
Provided:
Based
on
management’s
representations,
including
information
about
ongoing
enhancements
and
initiatives
with
respect
to
the
iShares
business,
including
with
respect
to
capital
markets
support
and
analysis,
technology,
portfolio
management,
product
design
and
quality,
compliance
and
risk
management,
global
public
policy
and
other
services,
the
Board
expected
that
there
would
be
no
diminution
in
the
scope
of
services
required
of
or
provided
by
BFA
under
the
Advisory
Agreement
for
the
coming
year
as
compared
with
the
scope
of
services
provided
by
BFA
during
prior
years.
In
reviewing
the
scope
of
these
services,
the
Board
considered
BFA’s
investment
philosophy
and
experience,
noting
that
BFA
and
its
affiliates
have
committed
significant
resources
over
time,
including
during
the
past
year,
to
support
the
iShares
funds
and
their
shareholders
and
have
made
significant
investments
into
the
iShares
business.
The
Board
also
considered
BFA’s
compliance
program
and
its
compliance
record
with
respect
to
the
Fund,
including
related
programs
implemented
pursuant
to
regulatory
requirements.
In
that
regard,
the
Board
noted
that
BFA
reports
to
the
Board
about
portfolio
management
and
compliance
matters
on
a
periodic
basis
in
connection
with
regularly
scheduled
meetings
of
the
Board,
and
on
other
occasions
as
necessary
and
appropriate,
and
has
provided
information
and
made
relevant
officers
and
other
employees
of
BFA
(and
its
affiliates)
available
as
needed
to
provide
further
assistance
with
these
matters.
The
Board
also
reviewed
the
background
and
experience
of
the
persons
responsible
for
the
day-to-day
management
of
the
Fund,
as
well
as
the
resources
available
to
them
in
managing
the
Fund.
In
addition
to
the
above
considerations,
the
Board
reviewed
and
considered
detailed
presentations
regarding
BFA’s
investment
performance,
investment
and
risk
management
processes
and
strategies
provided
at
the
May
2,
2023
meeting
and
throughout
the
year,
and
matters
related
to
BFA’s
portfolio
compliance
program
and
other
compliance
programs
and
services.
Based
on
review
of
this
information,
and
the
performance
information
discussed
above,
the
Board
concluded
that
the
nature,
extent
and
quality
of
services
provided
to
the
Fund
under
the
Advisory
Agreement
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Costs
of
Services
Provided
to
the
Fund
and
Profits
Realized
by
BFA
and
its
Affiliates:
Board
reviewed
information
about
the
estimated
profitability
to
BlackRock
in
managing
the
Fund,
based
on
the
fees
payable
to
BFA
and
its
affiliates
(including
fees
under
the
Advisory
Agreement),
and
other
sources
of
revenue
and
expense
to
BFA
and
its
affiliates
from
the
Fund’s
operations
for
the
last
calendar
year.
The
Board
reviewed
BlackRock’s
methodology
for
calculating
estimated
profitability
of
the
iShares
funds,
noting
that
the
15(c)
Committee
and
the
Board
had
focused
on
the
methodology
and
profitability
presentation.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors,
including,
among
other
things,
fee
waivers
by
BFA,
the
types
of
funds
managed,
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
Board
Review
and
Approval
of
Investment
Advisory
Contract
(continued)
2023
iShares
Annual
Report
to
Shareholders
64
calculating
and
comparing
profitability
at
individual
fund
levels
is
challenging.
The
Board
discussed
with
management
the
sources
of
direct
and
ancillary
revenue,
including
the
revenues
to
BTC,
a
BlackRock
affiliate,
from
securities
lending
by
the
Fund.
The
Board
also
discussed
BFA’s
estimated
profit
margin
as
reflected
in
the
Fund’s
profitability
analysis
and
reviewed
information
regarding
potential
economies
of
scale
(as
discussed
below).
Based
on
this
review,
the
Board
concluded
that
the
information
considered
with
respect
to
the
profits
realized
by
BFA
and
its
affiliates
under
the
Advisory
Agreement
and
from
other
relationships
between
the
Fund
and
BFA
and/or
its
affiliates,
if
any,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Economies
of
Scale:
The
Board
reviewed
information
and
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
the
Fund
increase,
noting
that
the
issue
of
potential
economies
of
scale
had
been
focused
on
by
the
15(c)
Committee
and
the
Board
during
their
meetings
and
addressed
by
management.
The
15(c)
Committee
and
the
Board
received
information
regarding
BlackRock’s
historical
estimated
profitability
(as
discussed
above),
including
BFA’s
and
its
affiliates’
estimated
costs
in
providing
services.
The
estimated
cost
information
distinguished,
among
other
things,
between
fixed
and
variable
costs,
and
showed
how
the
level
and
nature
of
fixed
and
variable
costs
may
impact
the
existence
or
size
of
scale
benefits,
with
the
Board
recognizing
that
potential
economies
of
scale
are
difficult
to
measure.
The
15(c)
Committee
and
the
Board
reviewed
information
provided
by
BFA
regarding
the
sharing
of
scale
benefits
with
the
iShares
funds
through
various
means,
including,
as
applicable,
through
relatively
low
fee
rates
established
at
inception,
breakpoints,
waivers,
or
other
fee
reductions,
as
well
as
through
additional
investment
in
the
iShares
business
and
the
provision
of
improved
or
additional
infrastructure
and
services
to
the
iShares
funds
and
their
shareholders.
The
Board
noted
that
the
Advisory
Agreement
for
the
Fund
did
not
provide
for
breakpoints
in
the
Fund’s
investment
advisory
fee
rate
as
the
assets
of
the
Fund
increase.
However,
the
Board
noted
that
it
would
continue
to
assess
the
appropriateness
of
adding
breakpoints
in
the
future.
The
Board
concluded
that
this
review
of
potential
economies
of
scale
and
the
sharing
of
related
benefits,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Fees
and
Services
Provided
for
Other
Comparable
Funds/Accounts
Managed
by
BFA
and
its
Affiliates:
The
Board
received
and
considered
information
regarding
the
investment
advisory/management
fee
rates
for
other
funds/accounts
in
the
U.S.
for
which
BFA
(or
its
affiliates)
provides
investment
advisory/management
services,
including
open-end
funds
registered
under
the
1940
Act
(including
sub-advised
funds),
collective
trust
funds
and
institutional
separate
accounts
(collectively,
the
“Other
Accounts”).
The
Board
acknowledged
BFA’s
representation
that
the
iShares
funds
are
fundamentally
different
investment
vehicles
from
the
Other
Accounts.
The
Board
received
detailed
information
regarding
how
the
Other
Accounts
generally
differ
from
the
Fund,
including
in
terms
of
the
types
of
services
and
generally
more
extensive
services
provided
to
the
Fund,
as
well
as
other
significant
differences.
In
that
regard,
the
Board
considered
that
the
pricing
of
services
to
institutional
clients
is
typically
based
on
a
number
of
factors
beyond
the
nature
and
extent
of
the
specific
services
to
be
provided
and
often
depends
on
the
overall
relationship
between
the
client
and
its
affiliates
and
the
adviser
and
its
affiliates.
In
addition,
the
Board
considered
the
relative
complexity
and
inherent
risks
and
challenges
of
managing
and
providing
other
services
to
the
Fund,
as
a
publicly
traded
investment
vehicle,
as
compared
to
the
Other
Accounts,
particularly
those
that
are
institutional
clients,
in
light
of
differing
regulatory
requirements
and
client-imposed
mandates.
The
Board
noted
that
BFA
and
its
affiliates
do
not
manage
Other
Accounts
with
substantially
the
same
investment
objective
and
strategy
as
the
Fund
and
that
track
the
same
index
as
the
Fund.
The
Board
also
acknowledged
management’s
assertion
that,
for
certain
iShares
funds,
and
for
client
segmentation
purposes,
BlackRock
has
launched
an
iShares
fund
that
may
provide
a
similar
investment
exposure
at
a
lower
investment
advisory
fee
rate.
The
Board
considered
the
“all-inclusive”
nature
of
the
Fund’s
advisory
fee
structure,
and
the
Fund’s
expenses
borne
by
BFA
under
this
arrangement
and
noted
that
the
investment
advisory
fee
rate
under
the
Advisory
Agreement
for
the
Fund
was
generally
higher
than
the
investment
advisory/management
fee
rates
for
certain
of
the
Other
Accounts
(particularly
institutional
clients)
and
concluded
that
the
differences
appeared
to
be
consistent
with
the
factors
discussed.
Other
Benefits
to
BFA
and/or
its
Affiliates:
The
Board
reviewed
other
benefits
or
ancillary
revenue
received
by
BFA
and/or
its
affiliates
in
connection
with
the
services
provided
to
the
Fund
by
BFA,
both
direct
and
indirect,
including,
but
not
limited
to,
payment
of
revenue
to
BTC,
the
Fund’s
securities
lending
agent,
for
loaning
portfolio
securities,
as
applicable
(which
was
included
in
the
profit
margins
reviewed
by
the
Board
pursuant
to
BFA’s
estimated
profitability
methodology),
payment
of
advisory
fees
or
other
fees
to
BFA
(or
its
affiliates)
in
connection
with
any
investments
by
the
Fund
in
other
funds
for
which
BFA
(or
its
affiliates)
provides
investment
advisory
services
or
other
services,
and
BlackRock’s
profile
in
the
investment
community.
The
Board
further
considered
other
direct
benefits
that
might
accrue
to
BFA,
including
the
potential
for
reduction
in
the
Fund’s
expenses
that
are
borne
by
BFA
under
the
“all-inclusive”
management
fee
arrangement,
due
in
part
to
the
size
and
scope
of
BFA’s
investment
operations
servicing
the
Fund
(and
other
funds
in
the
iShares
complex)
as
well
as
in
response
to
a
changing
market
environment.
The
Board
also
reviewed
and
considered
information
provided
by
BFA
concerning
authorized
participant
primary
market
order
processing
services
that
are
provided
by
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
BFA,
and
paid
for
by
authorized
participants
under
the
ETF
Servicing
Platform.
The
Board
also
noted
the
revenue
received
by
BFA
and/or
its
affiliates
pursuant
to
an
agreement
that
permits
a
service
provider
to
use
certain
portions
of
BlackRock’s
technology
platform
to
service
accounts
managed
by
BFA
and/or
its
affiliates,
including
the
iShares
funds.
The
Board
noted
that
BFA
generally
does
not
use
soft
dollars
or
consider
the
value
of
research
or
other
services
that
may
be
provided
to
BFA
(including
its
affiliates)
in
selecting
brokers
for
portfolio
transactions
for
the
Fund.
The
Board
concluded
that
any
such
ancillary
benefits
would
not
be
disadvantageous
to
the
Fund
and
thus
would
not
alter
the
Board’s
conclusion
with
respect
to
the
appropriateness
of
approving
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Conclusion:
Based
on
a
review
of
the
factors
described
above,
as
well
as
such
other
factors
as
deemed
appropriate
by
the
Board,
the
Board,
including
all
of
the
Independent
Board
Members,
determined
that
the
Fund’s
investment
advisory
fee
rate
under
the
Advisory
Agreement
does
not
constitute
a
fee
that
is
so
disproportionately
large
as
to
bear
no
reasonable
relationship
to
the
services
rendered
and
that
could
not
have
been
the
product
of
arm’s-length
bargaining,
and
concluded
to
approve
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Board
Review
and
Approval
of
Investment
Advisory
Contract
(continued)
65
Board
Review
and
Approval
of
Investment
Advisory
Contract
iShares
U.S.
Tech
Breakthrough
Multisector
ETF
(the
“Fund”)
Under
Section
15(c)
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Trust’s
Board
of
Trustees
(the
“Board”),
including
a
majority
of
Board
Members
who
are
not
“interested
persons”
of
the
Trust
(as
that
term
is
defined
in
the
1940
Act)
(the
“Independent
Board
Members”),
is
required
annually
to
consider
the
approval
of
the
Investment
Advisory
Agreement
between
the
Trust
and
BFA
(the
“Advisory
Agreement”)
on
behalf
of
the
Fund.
The
Board’s
consideration
entails
a
year-long
process
whereby
the
Board
and
its
committees
(composed
solely
of
Independent
Board
Members)
assess
BlackRock’s
services
to
the
Fund,
including
investment
management;
fund
accounting;
administrative
and
shareholder
services;
oversight
of
the
Fund’s
service
providers;
risk
management
and
oversight;
legal
and
compliance
services;
and
ability
to
meet
applicable
legal
and
regulatory
requirements.
The
Independent
Board
Members
requested,
and
BFA
provided,
such
information
as
the
Independent
Board
Members,
with
advice
from
independent
counsel,
deemed
reasonably
necessary
to
evaluate
the
Advisory
Agreement.
At
meetings
on
May
2,
2023
and
May
15,
2023,
a
committee
composed
of
all
of
the
Independent
Board
Members
(the
“15(c)
Committee”),
with
independent
counsel,
met
with
management
and
reviewed
and
discussed
information
provided
in
response
to
initial
requests
of
the
15(c)
Committee
and/or
its
independent
counsel,
and
requested
certain
additional
information,
which
management
agreed
to
provide.
At
a
meeting
held
on
June
7-8,
2023,
the
Board,
including
the
Independent
Board
Members,
reviewed
the
additional
information
provided
by
management
in
response
to
these
requests.
After
extensive
discussions
and
deliberations,
the
Board,
including
all
of
the
Independent
Board
Members,
approved
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
based
on
a
review
of
qualitative
and
quantitative
information
provided
by
BFA
and
their
cumulative
experience
as
Board
Members.
The
Board
noted
its
satisfaction
with
the
extent
and
quality
of
information
provided
and
its
frequent
interactions
with
management,
as
well
as
the
detailed
responses
and
other
information
provided
by
BFA.
The
Independent
Board
Members
were
advised
by
their
independent
counsel
throughout
the
process,
including
about
the
legal
standards
applicable
to
their
review.
In
approving
the
continuance
of
the
Advisory
Agreement
for
the
Fund,
the
Board,
including
the
Independent
Board
Members,
considered
various
factors,
including:
(i)
the
expenses
and
performance
of
the
Fund;
(ii)
the
nature,
extent
and
quality
of
the
services
provided
by
BFA;
(iii)
the
costs
of
services
provided
to
the
Fund
and
profits
realized
by
BFA
and
its
affiliates;
(iv)
potential
economies
of
scale
and
the
sharing
of
related
benefits;
(v)
the
fees
and
services
provided
for
other
comparable
funds/accounts
managed
by
BFA
and
its
affiliates;
and
(vi)
other
benefits
to
BFA
and/or
its
affiliates.
The
material
factors,
none
of
which
was
controlling,
and
conclusions
that
formed
the
basis
for
the
Board,
including
the
Independent
Board
Members,
to
approve
the
continuance
of
the
Advisory
Agreement
are
discussed
below.
Expenses
and
Performance
of
the
Fund:
The
Board
reviewed
statistical
information
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
an
independent
provider
of
investment
company
data,
regarding
the
expense
ratio
components,
including
gross
and
net
total
expenses,
fees
and
expenses
of
other
fund(s)
in
which
the
Fund
invests
(if
applicable),
and
waivers/reimbursements
(if
applicable)
of
the
Fund
in
comparison
with
the
same
information
for
other
ETFs,
objectively
selected
by
Broadridge
as
comprising
the
Fund’s
applicable
expense
peer
group
pursuant
to
Broadridge’s
proprietary
ETF
methodology
(the
“Peer
Group”).
The
Board
was
provided
with
a
detailed
description
of
the
proprietary
ETF
methodology
used
by
Broadridge
to
determine
the
Fund’s
Peer
Group.
The
Board
noted
that,
due
to
the
limitations
in
providing
comparable
funds
in
the
Peer
Group,
the
statistical
information
provided
in
Broadridge’s
report
may
or
may
not
provide
meaningful
direct
comparisons
to
the
Fund
in
all
instances.
The
Board
also
noted
that
the
investment
advisory
fee
rate
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
for
the
Fund
were
within
range
of
the
median
of
the
investment
advisory
fee
rates
and
overall
expenses
(net
of
any
waivers
and
reimbursements)
of
the
funds
in
its
Peer
Group,
excluding
iShares
funds.
In
addition,
to
the
extent
that
any
of
the
comparison
funds
included
in
the
Peer
Group,
excluding
iShares
funds,
track
the
same
index
as
the
Fund,
Broadridge
also
provided,
and
the
Board
reviewed,
a
comparison
of
the
Fund’s
performance
for
the
one-year,
three-year,
five-year,
ten-year,
and
since
inception
periods,
as
applicable,
and
for
the
quarter
ended
December
31,
2022,
to
that
of
such
relevant
comparison
fund(s)
for
the
same
periods.
The
Board
noted
that
the
Fund
seeks
to
track
its
specified
underlying
index
and
that,
during
the
year,
the
Board
received
periodic
reports
on
the
Fund’s
short-
and
longer-term
performance
in
comparison
with
its
underlying
index.
Such
periodic
comparative
performance
information,
including
additional
detailed
information
as
requested
by
the
Board,
was
also
considered.
The
Board
noted
that
the
Fund
generally
performed
in
line
with
its
underlying
index
over
the
relevant
periods.
Based
on
this
review,
the
other
factors
considered
at
the
meeting,
and
their
general
knowledge
of
ETF
pricing,
the
Board
concluded
that
the
investment
advisory
fee
rate
and
expense
level
and
the
historical
performance
of
the
Fund
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Nature,
Extent
and
Quality
of
Services
Provided:
Based
on
management’s
representations,
including
information
about
ongoing
enhancements
and
initiatives
with
respect
to
the
iShares
business,
including
with
respect
to
capital
markets
support
and
analysis,
technology,
portfolio
management,
product
design
and
quality,
compliance
and
risk
management,
global
public
policy
and
other
services,
the
Board
expected
that
there
would
be
no
diminution
in
the
scope
of
services
required
of
or
provided
by
BFA
under
the
Advisory
Agreement
for
the
coming
year
as
compared
with
the
scope
of
services
provided
by
BFA
during
prior
years.
In
reviewing
the
scope
of
these
services,
the
Board
considered
BFA’s
investment
philosophy
and
experience,
noting
that
BFA
and
its
affiliates
have
committed
significant
resources
over
time,
including
during
the
past
year,
to
support
the
iShares
funds
and
their
shareholders
and
have
made
significant
investments
into
the
iShares
business.
The
Board
also
considered
BFA’s
compliance
program
and
its
compliance
record
with
respect
to
the
Fund,
including
related
programs
implemented
pursuant
to
regulatory
requirements.
In
that
regard,
the
Board
noted
that
BFA
reports
to
the
Board
about
portfolio
management
and
compliance
matters
on
a
periodic
basis
in
connection
with
regularly
scheduled
meetings
of
the
Board,
and
on
other
occasions
as
necessary
and
appropriate,
and
has
provided
information
and
made
relevant
officers
and
other
employees
of
BFA
(and
its
affiliates)
available
as
needed
to
provide
further
assistance
with
these
matters.
The
Board
also
reviewed
the
background
and
experience
of
the
persons
responsible
for
the
day-to-day
management
of
the
Fund,
as
well
as
the
resources
available
to
them
in
managing
the
Fund.
In
addition
to
the
above
considerations,
the
Board
reviewed
and
considered
detailed
presentations
regarding
BFA’s
investment
performance,
investment
and
risk
management
processes
and
strategies
provided
at
the
May
2,
2023
meeting
and
throughout
the
year,
and
matters
related
to
BFA’s
portfolio
compliance
program
and
other
compliance
programs
and
services.
Based
on
review
of
this
information,
and
the
performance
information
discussed
above,
the
Board
concluded
that
the
nature,
extent
and
quality
of
services
provided
to
the
Fund
under
the
Advisory
Agreement
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Costs
of
Services
Provided
to
the
Fund
and
Profits
Realized
by
BFA
and
its
Affiliates:
The
Board
reviewed
information
about
the
estimated
profitability
to
BlackRock
in
managing
the
Fund,
based
on
the
fees
payable
to
BFA
and
its
affiliates
(including
fees
under
the
Advisory
Agreement),
and
other
sources
of
revenue
and
expense
to
BFA
and
its
affiliates
from
the
Fund’s
operations
for
the
last
calendar
year.
The
Board
reviewed
BlackRock’s
methodology
for
calculating
estimated
profitability
of
the
iShares
Board
Review
and
Approval
of
Investment
Advisory
Contract
(continued)
2023
iShares
Annual
Report
to
Shareholders
66
funds,
noting
that
the
15(c)
Committee
and
the
Board
had
focused
on
the
methodology
and
profitability
presentation.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors,
including,
among
other
things,
fee
waivers
by
BFA,
the
types
of
funds
managed,
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
individual
fund
levels
is
challenging.
The
Board
discussed
with
management
the
sources
of
direct
and
ancillary
revenue,
including
the
revenues
to
BTC,
a
BlackRock
affiliate,
from
securities
lending
by
the
Fund.
The
Board
also
discussed
BFA’s
estimated
profit
margin
as
reflected
in
the
Fund’s
profitability
analysis
and
reviewed
information
regarding
potential
economies
of
scale
(as
discussed
below).
Based
on
this
review,
the
Board
concluded
that
the
information
considered
with
respect
to
the
profits
realized
by
BFA
and
its
affiliates
under
the
Advisory
Agreement
and
from
other
relationships
between
the
Fund
and
BFA
and/or
its
affiliates,
if
any,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Economies
of
Scale:
The
Board
reviewed
information
and
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
the
Fund
increase,
noting
that
the
issue
of
potential
economies
of
scale
had
been
focused
on
by
the
15(c)
Committee
and
the
Board
during
their
meetings
and
addressed
by
management.
The
15(c)
Committee
and
the
Board
received
information
regarding
BlackRock’s
historical
estimated
profitability
(as
discussed
above),
including
BFA’s
and
its
affiliates’
estimated
costs
in
providing
services.
The
estimated
cost
information
distinguished,
among
other
things,
between
fixed
and
variable
costs,
and
showed
how
the
level
and
nature
of
fixed
and
variable
costs
may
impact
the
existence
or
size
of
scale
benefits,
with
the
Board
recognizing
that
potential
economies
of
scale
are
difficult
to
measure.
The
15(c)
Committee
and
the
Board
reviewed
information
provided
by
BFA
regarding
the
sharing
of
scale
benefits
with
the
iShares
funds
through
various
means,
including,
as
applicable,
through
relatively
low
fee
rates
established
at
inception,
breakpoints,
waivers,
or
other
fee
reductions,
as
well
as
through
additional
investment
in
the
iShares
business
and
the
provision
of
improved
or
additional
infrastructure
and
services
to
the
iShares
funds
and
their
shareholders.
The
Board
noted
that
the
Advisory
Agreement
for
the
Fund
did
not
provide
for
breakpoints
in
the
Fund’s
investment
advisory
fee
rate
as
the
assets
of
the
Fund
increase.
However,
the
Board
noted
that
it
would
continue
to
assess
the
appropriateness
of
adding
breakpoints
in
the
future.
The
Board
concluded
that
this
review
of
potential
economies
of
scale
and
the
sharing
of
related
benefits,
as
well
as
the
other
factors
considered
at
the
meeting,
supported
the
Board’s
approval
of
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Fees
and
Services
Provided
for
Other
Comparable
Funds/Accounts
Managed
by
BFA
and
its
Affiliates:
The
Board
received
and
considered
information
regarding
the
investment
advisory/management
fee
rates
for
other
funds/accounts
in
the
U.S.
for
which
BFA
(or
its
affiliates)
provides
investment
advisory/management
services,
including
open-end
funds
registered
under
the
1940
Act
(including
sub-advised
funds),
collective
trust
funds
and
institutional
separate
accounts
(collectively,
the
“Other
Accounts”).
The
Board
acknowledged
BFA’s
representation
that
the
iShares
funds
are
fundamentally
different
investment
vehicles
from
the
Other
Accounts.
The
Board
received
detailed
information
regarding
how
the
Other
Accounts
generally
differ
from
the
Fund,
including
in
terms
of
the
types
of
services
and
generally
more
extensive
services
provided
to
the
Fund,
as
well
as
other
significant
differences.
In
that
regard,
the
Board
considered
that
the
pricing
of
services
to
institutional
clients
is
typically
based
on
a
number
of
factors
beyond
the
nature
and
extent
of
the
specific
services
to
be
provided
and
often
depends
on
the
overall
relationship
between
the
client
and
its
affiliates
and
the
adviser
and
its
affiliates.
In
addition,
the
Board
considered
the
relative
complexity
and
inherent
risks
and
challenges
of
managing
and
providing
other
services
to
the
Fund,
as
a
publicly
traded
investment
vehicle,
as
compared
to
the
Other
Accounts,
particularly
those
that
are
institutional
clients,
in
light
of
differing
regulatory
requirements
and
client-imposed
mandates.
The
Board
noted
that
BFA
and
its
affiliates
do
not
manage
Other
Accounts
with
substantially
the
same
investment
objective
and
strategy
as
the
Fund
and
that
track
the
same
index
as
the
Fund.
The
Board
also
acknowledged
management’s
assertion
that,
for
certain
iShares
funds,
and
for
client
segmentation
purposes,
BlackRock
has
launched
an
iShares
fund
that
may
provide
a
similar
investment
exposure
at
a
lower
investment
advisory
fee
rate.
The
Board
considered
the
“all-inclusive”
nature
of
the
Fund’s
advisory
fee
structure,
and
the
Fund’s
expenses
borne
by
BFA
under
this
arrangement
and
noted
that
the
investment
advisory
fee
rate
under
the
Advisory
Agreement
for
the
Fund
was
generally
higher
than
the
investment
advisory/management
fee
rates
for
certain
of
the
Other
Accounts
(particularly
institutional
clients)
and
concluded
that
the
differences
appeared
to
be
consistent
with
the
factors
discussed.
Other
Benefits
to
BFA
and/or
its
Affiliates:
The
Board
reviewed
other
benefits
or
ancillary
revenue
received
by
BFA
and/or
its
affiliates
in
connection
with
the
services
provided
to
the
Fund
by
BFA,
both
direct
and
indirect,
including,
but
not
limited
to,
payment
of
revenue
to
BTC,
the
Fund’s
securities
lending
agent,
for
loaning
portfolio
securities,
as
applicable
(which
was
included
in
the
profit
margins
reviewed
by
the
Board
pursuant
to
BFA’s
estimated
profitability
methodology),
payment
of
advisory
fees
or
other
fees
to
BFA
(or
its
affiliates)
in
connection
with
any
investments
by
the
Fund
in
other
funds
for
which
BFA
(or
its
affiliates)
provides
investment
advisory
services
or
other
services,
and
BlackRock’s
profile
in
the
investment
community.
The
Board
further
considered
other
direct
benefits
that
might
accrue
to
BFA,
including
the
potential
for
reduction
in
the
Fund’s
expenses
that
are
borne
by
BFA
under
the
“all-inclusive”
management
fee
arrangement,
due
in
part
to
the
size
and
scope
of
BFA’s
investment
operations
servicing
the
Fund
(and
other
funds
in
the
iShares
complex)
as
well
as
in
response
to
a
changing
market
environment.
The
Board
also
reviewed
and
considered
information
provided
by
BFA
concerning
authorized
participant
primary
market
order
processing
services
that
are
provided
by
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
BFA,
and
paid
for
by
authorized
participants
under
the
ETF
Servicing
Platform.
The
Board
also
noted
the
revenue
received
by
BFA
and/or
its
affiliates
pursuant
to
an
agreement
that
permits
a
service
provider
to
use
certain
portions
of
BlackRock’s
technology
platform
to
service
accounts
managed
by
BFA
and/or
its
affiliates,
including
the
iShares
funds.
The
Board
noted
that
BFA
generally
does
not
use
soft
dollars
or
consider
the
value
of
research
or
other
services
that
may
be
provided
to
BFA
(including
its
affiliates)
in
selecting
brokers
for
portfolio
transactions
for
the
Fund.
The
Board
concluded
that
any
such
ancillary
benefits
would
not
be
disadvantageous
to
the
Fund
and
thus
would
not
alter
the
Board’s
conclusion
with
respect
to
the
appropriateness
of
approving
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Conclusion:
Based
on
a
review
of
the
factors
described
above,
as
well
as
such
other
factors
as
deemed
appropriate
by
the
Board,
the
Board,
including
all
of
the
Independent
Board
Members,
determined
that
the
Fund’s
investment
advisory
fee
rate
under
the
Advisory
Agreement
does
not
constitute
a
fee
that
is
so
disproportionately
large
as
to
bear
no
reasonable
relationship
to
the
services
rendered
and
that
could
not
have
been
the
product
of
arm’s-length
bargaining,
and
concluded
to
approve
the
continuance
of
the
Advisory
Agreement
for
the
coming
year.
Supplemental
Information
(unaudited)
67
Supplemental
Information
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.
July
31,
2023
Tailored
Shareholder
Reports
for
Open-End
Mutual
Funds
and
ETFs
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end
mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Funds.
Premium/Discount
Information
Information
on
the
Fund’s
net
asset
value,
market
price,
premiums
and
discounts,
and
bid-ask
spreads
can
be
found
at
iShares.com
.
Total
Cumulative
Distributions
for
the
Fiscal
Year
%
Breakdown
of
the
Total
Cumulative
Distributions
for
the
Fiscal
Year
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
USA
Small-Cap
Min
Vol
Factor
........
$
0.658192
$
—
$
—
$
0.658192
100%
—%
—%
100%
U.S.
Small-Cap
Equity
Factor
.............
0.814690
—
—
0.814690
100
—
—
100
U.S.
Tech
Breakthrough
Multisector
.........
0.145141
—
—
0.145141
100
—
—
100
Trustee
and
Officer
Information
(unaudited)
2023
iShares
Annual
Report
to
Shareholders
68
The
Board
of
Trustees
has
responsibility
for
the
overall
management
and
operations
of
the
Funds,
including
general
supervision
of
the
duties
performed
by
BFA
and
other
service
providers.
Each
Trustee
serves
until
he
or
she
resigns,
is
removed,
dies,
retires
or
becomes
incapacitated.
Each
officer
shall
hold
office
until
his
or
her
successor
is
elected
and
qualifies
or
until
his
or
her
death,
resignation
or
removal.
Trustees
who
are
not
“interested
persons”
(as
defined
in
the
1940
Act)
of
the
Trust
are
referred
to
as
independent
trustees
(“Independent
Trustees”).
The
registered
investment
companies
advised
by
BFA
or
its
affiliates
(the
“BlackRock-advised
Funds”)
are
organized
into
one
complex
of
open-end
equity,
multi-asset,
index
and
money
market
funds
and
ETFs
(the
“BlackRock
Multi-Asset
Complex”),
one
complex
of
closed-end
funds
and
open-end
non-index
fixed-income
funds
(including
ETFs)
(the
“BlackRock
Fixed-Income
Complex”)
and
one
complex
of
ETFs
(“Exchange-Traded
Fund
Complex”)
(each,
a
“BlackRock
Fund
Complex”).
Each
Fund
is
included
in
the
Exchange-Traded
Fund
Complex.
Each
Trustee
also
serves
as
a
Director
of
iShares,
Inc.
and
a
Trustee
of
iShares
U.S.
ETF
Trust,
and,
as
a
result,
oversees
all
of
the
funds
within
the
Exchange-Traded
Fund
Complex,
which
consists
of
387
funds
as
of
July
31,
2023.
With
the
exception
of
Robert
S.
Kapito,
Salim
Ramji
and
Aaron
Wasserman,
the
address
of
each
Trustee
and
officer
is
c/o
BlackRock,
Inc.,
400
Howard
Street,
San
Francisco,
CA
94105.
The
address
of
Mr.
Kapito,
Mr.
Ramji
and
Mr. Wasserman
is
c/o
BlackRock,
Inc.,
50
Hudson
Yards,
New York,
NY
10001.
The
Board
has
designated
John
E.
Kerrigan
as
its
Independent
Board
Chair.
Additional
information
about
the
Funds’
Trustees
and
officers
may
be
found
in
the
Funds’
combined
Statement
of
Additional
Information,
which
is
available
without
charge,
upon
request,
by
calling
toll-free
1-800-iShares
(1-800-474-2737).
Interested
Trustees
(a)
Robert
S.
Kapito
is
deemed
to
be
an
“interested
person”
(as
defined
in
the
1940
Act)
of
the
Trust
due
to
his
affiliations
with
BlackRock,
Inc.
and
its
affiliates.
(b)
Salim
Ramji
is
deemed
to
be
an
“interested
person”
(as
defined
in
the
1940
Act)
of
the
Trust
due
to
his
affiliations
with
BlackRock,
Inc.
and
its
affiliates.
Independent
Trustees
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Other
Directorships
Held
by
Trustee
Robert
S.
Kapito
(a)
(1957)
Trustee
(since
2009).
President,
BlackRock,
Inc.
(since
2006);
Vice
Chairman
of
BlackRock,
Inc.
and
Head
of
BlackRock’s
Portfolio
Management
Group
(since
its
formation
in
1998)
and
BlackRock,
Inc.’s
predecessor
entities
(since
1988);
Trustee,
University
of
Pennsylvania
(since
2009);
President
of
Board
of
Directors,
Hope
&
Heroes
Children’s
Cancer
Fund
(since
2002).
Director
of
BlackRock,
Inc.
(since
2006);
Director
of
iShares,
Inc.
(since
2009);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Salim
Ramji
(b)
(1970)
Trustee
(since
2019).
Senior
Managing
Director,
BlackRock,
Inc.
(since
2014);
Global
Head
of
BlackRock’s
ETF
and
Index
Investments
Business
(since
2019);
Head
of
BlackRock’s
U.S.
Wealth
Advisory
Business
(2015-2019);
Global
Head
of
Corporate
Strategy,
BlackRock,
Inc.
(2014-2015);
Senior
Partner,
McKinsey
&
Company
(2010-2014).
Director
of
iShares,
Inc.
(since
2019);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2019).
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Other
Directorships
Held
by
Trustee
John
E.
Kerrigan
(1955)
Trustee
(since
2005);
Independent
Board
Chair
(since
2022).
Chief
Investment
Officer,
Santa
Clara
University
(since
2002).
Director
of
iShares,
Inc.
(since
2005);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011);
Independent
Board
Chair
of
iShares,
Inc.
and
iShares
U.S.
ETF
Trust
(since
2022).
Jane
D.
Carlin
(1956)
Trustee
(since
2015);
Risk
Committee
Chair
(since
2016).
Consultant
(since
2012);
Member
of
the
Audit
Committee
(2012-2018),
Chair
of
the
Nominating
and
Governance
Committee
(2017-2018)
and
Director
of
PHH
Corporation
(mortgage
solutions)
(2012-2018);
Managing
Director
and
Global
Head
of
Financial
Holding
Company
Governance
&
Assurance
and
the
Global
Head
of
Operational
Risk
Management
of
Morgan
Stanley
(2006-2012).
Director
of
iShares,
Inc.
(since
2015);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2015);
Member
of
the
Audit
Committee
(since
2016),
Chair
of
the
Audit
Committee
(since
2020)
and
Director
of
The
Hanover
Insurance
Group,
Inc.
(since
2016).
Richard
L.
Fagnani
(1954)
Trustee
(since
2017);
Audit
Committee
Chair
(since
2019).
Partner,
KPMG
LLP
(2002-2016);
Director
of
One
Generation
Away
(since
2021).
Director
of
iShares,
Inc.
(since
2017);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2017).
Cecilia
H.
Herbert
(1949)
Trustee
(since
2005);
Nominating
and
Governance
and
Equity
Plus
Committee
Chairs
(since
2022).
Chair
of
the
Finance
Committee
(since
2019)
and
Trustee
and
Member
of
the
Finance,
Audit
and
Quality
Committees
of
Stanford
Health
Care
(since
2016);
Trustee
of
WNET,
New
York’s
public
media
company
(since
2011)
and
Member
of
the
Audit
Committee
(since
2018),
Investment
Committee
(since
2011)
and
Personnel
Committee
(since
2022);
Member
of
the
Wyoming
State
Investment
Funds
Committee
(since
2022);
Director
of
the
Jackson
Hole
Center
for
the
Arts
(since
2021);
Trustee
of
Forward
Funds
(14
portfolios)
(2009-2018);
Trustee
of
Salient
MF
Trust
(4
portfolios)
(2015-2018).
Director
of
iShares,
Inc.
(since
2005);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Drew
E.
Lawton
(1959)
Trustee
(since
2017);
15(c)
Committee
Chair
(since
2017).
Senior
Managing
Director
of
New
York
Life
Insurance
Company
(2010-2015).
Director
of
iShares,
Inc.
(since
2017);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2017);
Director
of
Jackson
Financial
Inc.
(since
2021).
Trustee
and
Officer
Information
(unaudited)
(continued)
69
Trustee
and
Officer
Information
Officers
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Other
Directorships
Held
by
Trustee
John
E.
Martinez
(1961)
Trustee
(since
2003);
Securities
Lending
Committee
Chair
(since
2019).
Director
of
Real
Estate
Equity
Exchange,
Inc.
(since
2005);
Director
of
Cloudera
Foundation
(2017-2020);
and
Director
of
Reading
Partners
(2012-2016).
Director
of
iShares,
Inc.
(since
2003);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Madhav
V.
Rajan
(1964)
Trustee
(since
2011);
Fixed-
Income
Plus
Committee
Chair
(since
2019).
Dean,
and
George
Pratt
Shultz
Professor
of
Accounting,
University
of
Chicago
Booth
School
of
Business
(since
2017);
Advisory
Board
Member
(since
2016)
and
Director
(since
2020)
of
C.M.
Capital
Corporation;
Chair
of
the
Board
for
the
Center
for
Research
in
Security
Prices,
LLC
(since
2020);
Robert
K.
Jaedicke
Professor
of
Accounting,
Stanford
University
Graduate
School
of
Business
(2001-2017);
Professor
of
Law
(by
courtesy),
Stanford
Law
School
(2005-2017);
Senior
Associate
Dean
for
Academic
Affairs
and
Head
of
MBA
Program,
Stanford
University
Graduate
School
of
Business
(2010-2016).
Director
of
iShares,
Inc.
(since
2011);
Trustee
of
iShares
U.S.
ETF
Trust
(since
2011).
Name
(Year
of
Birth)
Position(s)
Principal
Occupation(s)
During
Past
5
Years
Dominik
Rohé
(1973)
President
(since
2023).
Managing
Director,
BlackRock,
Inc.
(since
2005);
Head
of
Americas
ETF
and
Index
Investments
(since
2023);
Head
of
Latin
America
(2019-
2023).
Trent
Walker
(1974)
Treasurer
and
Chief
Financial
Officer
(since
2020).
Managing
Director,
BlackRock,
Inc.
(since
September
2019);
Chief
Financial
Officer
of
iShares
Delaware
Trust
Sponsor
LLC,
BlackRock
Funds,
BlackRock
Funds
II,
BlackRock
Funds
IV,
BlackRock
Funds
V
and
BlackRock
Funds
VI
(since
2021);
Executive
Vice
President
of
PIMCO
(2016-2019);
Senior
Vice
President
of
PIMCO
(2008-2015);
Treasurer
(2013-2019)
and
Assistant
Treasurer
(2007-2017)
of
PIMCO
Funds,
PIMCO
Variable
Insurance
Trust,
PIMCO
ETF
Trust,
PIMCO
Equity
Series,
PIMCO
Equity
Series
VIT,
PIMCO
Managed
Accounts
Trust,
2
PIMCO-sponsored
interval
funds
and
21
PIMCO-sponsored
closed-end
funds.
Aaron
Wasserman
(1974)
Chief
Compliance
Officer
(since
2023).
Managing
Director
of
BlackRock,
Inc.
(since
2018);
Chief
Compliance
Officer
of
the
BlackRock
Multi-Asset
Complex,
the
BlackRock
Fixed-
Income
Complex
and
the
Exchange-Traded
Fund
Complex
(since
2023);
Deputy
Chief
Compliance
Officer
for
the
BlackRock
Multi-Asset
Complex,
the
BlackRock
Fixed-Income
Complex
and
the
Exchange-Traded
Fund
Complex
(2014-2023).
Marisa
Rolland
(1980)
Secretary
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2023);
Director,
BlackRock,
Inc.
(2018-2022);
Vice
President,
BlackRock,
Inc.
(2010-2017).
Rachel
Aguirre
(1982)
Executive
Vice
President
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2018);
Director,
BlackRock,
Inc.
(2009-2018);
Head
of
U.S.
iShares
Product
(since
2022);
Head
of
EII
U.S.
Product
Engineering
(since
2021);
Co-Head
of
EII’s
Americas
Portfolio
Engineering
(2020-
2021);
Head
of
Developed
Markets
Portfolio
Engineering
(2016-2019).
Jennifer
Hsui
(1976)
Executive
Vice
President
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2009);
Co-Head
of
Index
Equity
(since
2022).
James
Mauro
(1970)
Executive
Vice
President
(since
2022).
Managing
Director,
BlackRock,
Inc.
(since
2010);
Head
of
Fixed
Income
Index
Investments
in
the
Americas
and
Head
of
San
Francisco
Core
Portfolio
Management
(since
2020).
Effective
March
30,
2023,
Dominik
Rohé
replaced
Armando
Senra
as
President.
Effective
July
1,
2023,
Aaron
Wasserman
replaced
Charles
Park
as
Chief
Compliance
Officer.
Independent
Trustees
(continued)
General
Information
2023
iShares
Semi-Annual
Report
to
Shareholders
70
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.
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if
you
are
interested
in
enrolling
in
householding
and
receiving
a
single
copy
of
prospectuses
and
other
shareholder
documents,
or
if
you
are
currently
enrolled
in
householding
and
wish
to
change
your
householding
status.
Availability
of
Quarterly
Schedule
of
Investments
The
Funds
file
their
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
their
reports
on
Form
N-PORT.
The
Funds’
Forms
N-PORT
are
available
on
the
SEC’s
website
at
sec.gov
.
Additionally,
each
Fund
makes
its
portfolio
holdings
for
the
first
and
third
quarters
of
each
fiscal
year
available
at
iShares.com/fundreports
.
Availability
of
Proxy
Voting
Policies
and
Proxy
Voting
Records
A
description
of
the
policies
and
procedures
that
the
iShares
Funds
use
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
iShares
Funds
voted
proxies
relating
to
portfolio
securities
during
the
most
recent
twelve-month
period
ending
June
30
is
available
without
charge,
upon
request
(1)
by
calling
toll-free
1-800-474-2737;
(2)
on
the
iShares
website
at
iShares.com
;
and
(3)
on
the
SEC
website
at
sec.gov
.
A
description
of
the
Trust’s
policies
and
procedures
with
respect
to
the
disclosure
of each
Fund’s
portfolio
securities
is
available
in
the
Fund
Prospectus. Each
Fund
discloses
its
portfolio
holdings
daily
and
provides
information
regarding
its
top
holdings
in
Fund
fact
sheets
at
iShares.com
.
Glossary
of
Terms
Used
in
this
Report
71
Glossary
of
Terms
Used
in
this
Report
Portfolio
Abbreviation
ADR
American
Depositary
Receipts
MSCI
Morgan
Stanley
Capital
International
NVS
Non-Voting
Shares
OTC
Over-the-counter
REIT
Real
Estate
Investment
Trust
Currency
Abbreviation
USD
United
States
Dollar
iS-AR-719-0723
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.,
STOXX
Ltd.,
or
ICE
Data
Indices
LLC
nor
do
these
companies
make
any
representation
regarding
the
advisability
of
investing
in
the
iShares
Funds.
BlackRock
is
not
affiliated
with
the
companies
listed
above.
©2023
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.
(b) Not Applicable
Item 2. Code of Ethics.
The registrant
has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the registrant has not amended the code of ethics and there have been no waivers granted under the code of ethics.The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, by calling 1-800-474-2737.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that the registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the registrant’s audit committee are Richard L. Fagnani and Madhav V. Rajan, all of whom are independent, as that term is defined under Item 3(a)(2).
Item 4. Principal Accountant Fees and Services.
The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for the eight series of the registrant for which the fiscal year-end is July 31, 2023 (the “Funds”), and whose annual financial statements are reported in Item 1.
(a)
Audit Fees
– The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $84,000 for the fiscal year ended
July 31, 2022
and $88,100 for the fiscal year ended July 31, 2023.(b)
Audit-Related Fees
– There were no fees billed for the fiscal years end
ed July 31, 2022
and July 31, 2023 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (a) of this Item.(c)
Tax Fees
– The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning for the Funds were $77,600 for the fiscal year ended
July 31, 2022
and $77,600 for the fiscal year ended July 31, 2023. These services related to the review of the Funds’ tax returns and excise tax calculations.(d)
All Other Fees
– There were no other fees billed in each of the fiscal years end
ed July 31, 2022 and July 31, 2023
for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.(e)
(1) The registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the registrant or to any entity controlling, controlled by or under common control with the registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant.
(2) There were no services described in (b) through (d) above that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f)
Not Applicable
(g)
The aggregate non-audit fees billed by the registrant’s principal accountant for services rendered to the Funds, and rendered to the registrant’s investment adviser, and any Adviser Affiliate that provides ongoing services to the registrant for the last two fiscal years were $77,600 for the fiscal year ended
July 31, 2022
and $77,600 for the fiscal year ended July 31, 2023.(h)
The registrant’s audit committee has considered whether the provision of non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliate that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, is compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services, if any, does not compromise the principal accountant’s independence.
(i)
Not Applicable
(j)
Not Applicable
Item 5. Audit Committee of Listed Registrants.
(a)
The registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act of 1934 and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The registrant’s audit committee members are Richard L. Fagnani, Cecilia H. Herbert and Madhav V. Rajan.
(b) Not applicable.
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) (3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable.
(a) (4) Change in Registrant’s independent public accountant – 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/ Dominik Rohe | |||||||||
Dominik Rohe, President (Principal Executive Officer) | |||||||||
Date: | September 22, 2023 | ||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. | |||||||||
By: /s/ Dominik Rohe | |||||||||
Dominik Rohe, President (Principal Executive Officer) | |||||||||
Date: | September 22, 2023 | ||||||||
By: /s/ Trent Walker | |||||||||
Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer) | |||||||||
Date: | September 22, 2023 | ||||||||