iShares U.S. ETF Trust NCSR Certified annual shareholder report (management investment company)

iShares U.S. ETF Trust N-CSRCertified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22649

iShares U.S. ETF Trust

(Exact name of Registrant as specified in charter)

c/o: State Street Bank and Trust Company

1 Iron Street, Boston, MA 02210

(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: October 31, 2014

Date of reporting period: October 31, 2014

Item 1. Reports to Stockholders.

OCTOBER 31, 2014


2014 ANNUAL REPORT

iShares U.S. ETF Trust

^Ø

iShares Liquidity Income ETF | ICSH | BATS

^Ø

iShares Short Maturity Bond ETF | NEAR | BATS

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			10
Shareholder Expenses			10
Schedules of Investments			11
iShares Liquidity Income ETF			11
iShares Short Maturity Bond ETF			13
Financial Statements			22
Financial Highlights			25
Notes to Financial Statements			27
Report of Independent Registered Public Accounting Firm			39
Tax Information			40
Board Review and Approval of Investment Advisory Contract			41
Supplemental Information			48
Trustee and Officer Information			50

Management’s Discussion of Fund Performance

iSHARES^® U.S. ETF TRUST

U.S. BOND MARKET OVERVIEW

Domestic bond markets delivered modestly positive performance for the 12-month period ended October 31, 2014 (the “reporting period”), as uneven global economic conditions and actions by the U.S. Federal Reserve Bank (the “Fed”) largely drove bond market performance.

The reporting period began in an uncertain environment for fixed-income instruments, spurred by concerns of a change in Fed policy. Since the financial crisis of 2008, the Fed’s bond-buying program (known as quantitative easing or “QE”) had created an environment of low yields on longer-term Treasury bonds and other “safe haven” securities and generated gains for fixed-income investors. Generally improving economic data and unclear Fed announcements regarding tapering QE drove up uncertainty about when — and by how much — the Fed would begin to scale back its bond purchases.

In December 2013, the Fed removed these uncertainties. Citing improving jobless data, the Fed announced that it would begin cutting its bond-buying program by $10 billion per month in January 2014. The tapering program continued through October 2014, when the Fed made a final $15 billion bond purchase. The Fed assured markets that its benchmark interest rate would remain near zero for a considerable time after the taper concluded, keeping short-term interest rates low. In October 2014, though, the Fed signaled that the short-term interest rate hike might occur sooner than had been expected should inflation and employment data improve further.

During the reporting period, economic conditions generally improved. The unemployment rate declined steadily, reaching a six-year low of 5.8% by October 2014. Gross domestic product (“GDP”) levels declined in the first quarter of 2014, but grew by 4.6% and 3.5% for the second and third quarters of 2014, respectively. Inflation rates hovered near the Fed’s target 2.0% rate, edging up to 2.1% in May and June 2014 before dipping to 1.7% in August and September 2014.

Because bond markets had priced in the Fed’s tapering of QE before it was announced, the taper’s effect on bond yields was muted. During the course of the reporting period, weak first-quarter 2014 economic data in the U.S., geopolitical concerns in emerging markets, and declining fixed-income yields in the eurozone drove up demand for U.S. bonds, benefiting bond prices. As measured by the 10-year U.S. Treasury bond yield, longer-term yields climbed early in the reporting period, before drifting downward throughout the remainder of the reporting period to finish lower than they began (bond yields and bond prices move in opposite directions).

For the reporting period, bond performance was positive. In general, shorter-term bonds lagged longer-term bonds, as market participants anticipated a rise in short-term rates. Long-term Treasury bonds generated particularly strong results. Late in the reporting period, fears related to potential spread of the Ebola virus, weak economic conditions in Europe, and tension in emerging markets drove up demand for more secure U.S. bonds, particularly Treasury bonds. Treasury inflation-protected securities (TIPS) achieved relatively weak overall returns, as inflation levels remained low.

Investment grade corporate bonds outperformed high yield during the reporting period. Although high-yield bonds performed in line with the broader bond market, high yield began to underperform late in the reporting period as their spreads (the difference in yield compared with Treasury bonds) widened and investors shifted away from riskier investments.

Mortgage-backed securities delivered modestly positive results for the reporting period. Asset-backed bond prices were softened by the Fed’s reduced purchases of Treasury and agency mortgage-backed bonds. However, the rising demand that benefited Treasury bonds near the end of the reporting period also pushed down 30-year mortgage rates to their lowest levels since June 2013, because the rate is tied to the 10-year U.S. Treasury bond.


MANAGEMENT’S DISCUSSIONSOF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® LIQUIDITY INCOME ETF

Performance as of October 31, 2014


	Cumulative Total Returns
	Since Inception
Fund NAV		0.45%
Fund Market		0.39%
Bank of America Merrill Lynch 6-month US Treasury Bill Index		0.12%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 12/11/13. The first day of secondary market trading was 12/13/13.

The Bank of America Merrill Lynch 6-month US Treasury Bill Index is an unmanaged index that measures the performance of government securities with less than 6 months remaining to maturity.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,002.10	$	0.91	$	1,000.00	$	1,024.30	$	0.92		0.18%

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.


6		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® LIQUIDITY INCOME ETF

The iShares Liquidity Income ETF (the “Fund”) seeks to provide current income consistent with preservation of capital by investing, under normal circumstances, at least 80% of its net assets in a portfolio of U.S. dollar-denominated investment-grade fixed- and floating-rate debt securities and maintain a dollar-weighted average maturity that is less than 180 days. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. For the period from December 11, 2013 (inception date of the Fund) through October 31, 2014 (the “reporting period”), the total return for the Fund was 0.45%, net of fees.

During the reporting period, short-term interest rates remained low as the Fed kept its target lending rate between 0 to 0.25%. Credit conditions continued to improve throughout the reporting period, as the economy created more jobs and the Fed kept an accommodative stance with its bond purchasing program. However, as the reporting period came to a close, the Fed officially ended its bond purchasing program, but declared to maintain its commitment to a near zero interest rate policy “for a considerable time.”

Improvement in credit conditions caused credit spreads to decrease on investment-grade debt, which positively contributed to the Fund’s performance during the reporting period. Investments in debt issued by highly rated issuers detracted from performance as they generated less income than slightly lower rated bonds.

As of October 31, 2014, the Fund held primarily high quality short-term corporate bonds, repurchase agreements, commercial paper and certificates of deposit. The Fund had large exposures to financial and industrial issuers in the corporate bond sector, as well as asset-backed securities backed by auto loans.

PORTFOLIO ALLOCATION

As of 10/31/14


Investment Type		Percentage of Total Investments¹


Corporate Bonds & Notes	60.61	%
Repurchase Agreements	17.90
Asset-Backed Securities	10.10
Commercial Paper	5.78
Certificates of Deposit	5.61

TOTAL	100.00	%

BOND CREDIT QUALITY

As of 10/31/14


Moody’s Credit Rating²		Percentage of Total Investments¹


Aaa	10.10	%
Aa	23.82
A	34.48
Baa	7.92
P-2	10.90
Not Rated	12.78

TOTAL	100.00	%

Excludes money market funds.

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.


MANAGEMENT’S DISCUSSIONSOF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® SHORT MATURITY BOND ETF

Performance as of October 31, 2014


	Average Annual Total Returns				Cumulative Total Returns
	1 Year		Since Inception		1 Year		Since Inception
Fund NAV		0.96%		1.00%		0.96%		1.10%
Fund Market		1.06%		1.11%		1.06%		1.22%
Barclays Short-Term Government/Corporate Index		0.21%		0.20%		0.21%		0.22%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION NET ASSET VALUE)

LOGO

The inception date of the Fund was 9/25/13. The first day of secondary market trading was 9/26/13.

The Barclays Short-Term Government/Corporate Index is an unmanaged index that measures the performance of government and corporate securities with less than 1 year remaining to maturity.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,003.30	$	1.26	$	1,000.00	$	1,023.90	$	1.28		0.25%


8		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® SHORT MATURITY BOND ETF

The iShares Short Maturity Bond ETF (the “Fund”) seeks to maximize current income by primarily investing, under normal circumstances, at least 80% of its nets assets in a portfolio of U.S. dollar-denominated investment-grade fixed income securities and maintain a weighted average maturity that is less than three years. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. For the 12-month reporting period ended October 31, 2014, the total return for the Fund was 0.96%, net of fees.

The Fund held primarily investment grade corporate bonds and securitized debt. An improvement in credit conditions caused credit spreads to decrease on investment grade debt, which positively contributed to the Fund’s performance during the reporting period. For securitized credit, a positive macroeconomic backdrop and continued demand for shorter duration securitized debt led to net negative supply and higher bond prices during the period, which also benefited the Fund. On the negative side, the Fund’s small allocation to non-USD securities underperformed compared to other sectors for the reporting period.

As of October 31, 2014, the Fund held positions primarily in short maturity investment-grade corporate bonds and securitized debt, including bonds backed by commercial mortgages, auto loans, credit cards and student loans.

PORTFOLIO ALLOCATION

As of 10/31/14


Investment Type		Percentage of Total Investments¹


Corporate Bonds & Notes	59.02	%
Asset-Backed Securities	24.91
Mortgage-Backed Securities	15.71
Municipal Debt Obligations	0.36

TOTAL	100.00	%

BOND CREDIT QUALITY

As of 10/31/14


Moody’s Credit Rating²		Percentage of Total Investments¹


Aaa	18.55	%
Aa	7.28
A	10.48
Baa	45.89
Ba	0.93
Not Rated	16.87

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONSOF FUND PERFORMANCE			9

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment management fees. Without such waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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 have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, 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.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2014 and held through October 31, 2014, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number for your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


10		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments

iSHARES^® LIQUIDITY INCOME ETF

October 31, 2014


Security	Principal (000s)		Value

ASSET-BACKED SECURITIES — 9.86%
BMW Vehicle Lease Trust Series 2014-1, Class A2
0.45%, 03/21/16 (Call 09/20/15)	$	375	$	374,970
CarMax Auto Owner Trust Series 2014-1, Class A2
0.47%, 02/15/17		207		207,222
Series 2014-2, Class A2
0.46%, 04/17/17		200		199,903
Honda Auto Receivables Owner Trust Series 2014-2, Class A2
0.39%, 09/19/16 (Call 11/18/15)		250		249,977
Mercedes-Benz Auto Lease Trust Series 2014-A, Class A2A
0.48%, 06/15/16		250		250,111
Volkswagen Auto Loan Enhanced Trust Series 2014-1, Class A2
0.42%, 03/20/17		200		199,796

TOTAL ASSET-BACKED SECURITIES (Cost: $1,482,146)				1,481,979

CERTIFICATES OF DEPOSIT — 5.48%
Bank of Nova Scotia (The)
0.67%, 09/11/15		571		572,837
Credit Suisse New York
0.56%, 08/24/15		250		249,899

TOTAL CERTIFICATES OF DEPOSIT (Cost: $822,090)				822,736

COMMERCIAL PAPER^a —5.65%
Nissan Motor Acceptance Corp.
0.40%, 04/20/15		350		349,349
Vodafone Group PLC
0.44%, 04/10/15		500		499,154

TOTAL COMMERCIAL PAPER (Cost: $847,738)				848,503

CORPORATE BONDS & NOTES — 59.17%

AUTO MANUFACTURERS — 3.42%
Daimler Finance North America LLC
2.63%, 09/15/16^b		500		514,377

				514,377


Security	Principal (000s)		Value

BANKS — 35.45%
Bank of America N.A.
0.70%, 11/14/16^c	$	275	$	275,111
Bank of Montreal
0.70%, 09/11/15^c		350		351,336
Banque Federative du Credit Mutuel SA
1.08%, 01/20/17^b,c		500		503,949
BPCE SA
0.73%, 07/15/15^c		500		500,874
1.08%, 02/10/17^c		250		252,245
Commonwealth Bank of Australia
0.44%, 12/04/15^b,c,d		250		250,085
0.73%, 09/20/16^b,c		250		251,499
Macquarie Bank Ltd.
0.68%, 06/15/16^b,c		275		274,955
National Australia Bank Ltd.
0.66%, 12/02/16^b,c		600		602,728
Suncorp-Metway Ltd.
0.70%, 05/23/16^b,c		500		501,000
Toronto-Dominion Bank (The)
2.38%, 10/19/16		200		206,248
Wells Fargo & Co.
0.43%, 10/28/15^c		600		600,393
Westpac Banking Corp.
0.99%, 09/25/15^c		750		754,876

				5,325,299
DIVERSIFIED FINANCIAL SERVICES — 5.82%
General Electric Capital Corp.
0.43%, 01/08/16^c		200		200,208
0.43%, 05/11/16^c		150		150,007
0.83%, 01/08/16^c		350		352,017
1.10%, 05/09/16^c		170		171,715

				873,947
MANUFACTURING — 3.33%
Tyco Electronics Group SA
0.43%, 01/29/16^c		500		499,780

				499,780
MEDIA — 3.38%
NBCUniversal Media LLC
3.65%, 04/30/15		500		507,870

				507,870


SCHEDULESOF INVESTMENTS			11

Schedule of Investments (Continued)

iSHARES^® LIQUIDITY INCOME ETF

October 31, 2014


Security	Principal (000s)		Value

OIL & GAS — 1.67%
Devon Energy Corp.
0.68%, 12/15/15^c	$	250	$	250,806

				250,806
PHARMACEUTICALS — 1.66%
Bayer US Finance LLC
0.48%, 10/07/16^b,c		250		250,191

				250,191
TELECOMMUNICATIONS — 4.44%
America Movil SAB de CV
2.38%, 09/08/16		250		255,948
Verizon Communications Inc.
2.50%, 09/15/16		400		411,819

				667,767

TOTAL CORPORATE BONDS & NOTES (Cost: $8,872,603)				8,890,037

REPURCHASE AGREEMENTS —17.47%
Citigroup Global Markets Inc., 0.39%, 11/03/14^c (Purchased on 9/29/14 to be repurchased at $750,024, collateralized by U.S. Treasury obligations, 0.63%, due 11/30/17, par and fair value of $771,700 and $765,035, respectively)		750		750,000
Morgan Stanley & Co. LLC, 0.49%, 12/16/14^c (Purchased on 9/17/14 to be repurchased at $600,735, collateralized by U.S. government agency obligations, 4.65%, due 7/20/60, par and fair value of $6,038,476 and $618,000, respectively)		600		600,000
RBS Securities Inc., 1.00%, 11/03/14 (Purchased on 9/02/14 to be repurchased at $525,904, collateralized by U.S. government agency obligations, 5.00%, due 6/01/41, par and fair value of $520,000 and $542,341, respectively)		525		525,000


Security	Principal or Shares (000s)		Value

SG Americas Securities LLC, 0.33%, 11/03/14^c (Purchased on 1/09/14 to be repurchased at $750,021, collateralized by various corporate debt obligations, 1.75% to 9.70%, due 1/15/15 to 4/01/30, par and fair value of $847,237 and $861,751, respectively)	$	750	$	750,000

TOTAL REPURCHASE AGREEMENTS (Cost: $2,625,000)				2,625,000

MONEY MARKET FUNDS — 4.03%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^e,f,g		235		234,970
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		370		369,649

TOTAL MONEY MARKET FUNDS
(Cost: $604,619)				604,619

TOTAL INVESTMENTS IN SECURITIES — 101.66%
(Cost: $15,254,196)				15,272,874
Other Assets, Less Liabilities — (1.66)%				(248,915	)

NET ASSETS — 100.00%			$	15,023,959

^a	Rates shown are discount rates paid at the time of purchase.

^b	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c	Variable rate security. Rate shown is as of report date.

^d	All or a portion of this security represents a security on loan. See Note 1.

^e	Affiliated issuer. See Note 2.

^f	The rate quoted is the annualized seven-day yield of the fund at period end.

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


12		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

ASSET-BACKED SECURITIES — 23.50%
ABCLO 2007-1 Ltd. Series 2007-1A, Class A1B
0.58%, 04/15/21^a,b	$	1,500	$	1,474,135
ACAS CLO Ltd. Series 2007-1A, Class A1S
0.44%, 04/20/21^a,b		761		752,539
American Credit Acceptance Receivables Trust Series 2014-1, Class A
1.14%, 03/12/18^a		459		459,506
American Homes 4 Rent Series 2014-SFR1, Class A
1.25%, 06/17/31^a,b		457		453,588
AmeriCredit Automobile Receivables Trust
Series 2011-2, Class C
3.19%, 10/12/16 (Call 05/08/15)		158		159,256
Series 2012-3, Class D
3.03%, 07/09/18 (Call 07/08/16)		1,700		1,742,816
Series 2013-1, Class D
2.09%, 02/08/19 (Call 11/08/16)		2,500		2,506,390
ARI Fleet Lease Trust Series 2014-A, Class A2
0.81%, 11/15/22^a		1,045		1,046,311
Avalon IV Capital Ltd. Series 2012-1AR, Class AR
1.40%, 04/17/23^a,b		1,435		1,432,994
Cabela’s Credit Card Master Note Trust Series 2014-2, Class A
1.00%, 07/15/22^b		3,500		3,491,778
Chase Issuance Trust Series 2013-A9, Class A
0.57%, 11/16/20^b		2,000		2,004,056
Chatham Light CLO II Ltd. Series 2005-2A, Class B
0.94%, 08/03/19^a,b		2,000		1,974,200
Chesapeake Funding LLC Series 2012-1A, Class B
1.75%, 11/07/23^a,b		1,635		1,650,519
Citibank Credit Card Issuance Trust Series 2013-A4, Class A4
0.57%, 07/24/20^b		2,000		2,003,970


Security	Principal (000s)		Value

CNH Wholesale Master Note Trust Series 2013-2A, Class B
1.05%, 08/15/19^a,b	$	300	$	300,270
COA Caerus CLO Ltd. Series 2007-6A, Class A1
0.87%, 12/13/19^a,b		2,000		1,977,792
Cornerstone CLO Ltd. Series 2007-1A, Class A1S
0.45%, 07/15/21^a,b		421		417,977
Credit Acceptance Auto Loan Trust
Series 2012-1A, Class A
2.20%, 09/16/19^a		102		102,429
Series 2013-2A, Class A
1.50%, 04/15/21^a		1,000		1,003,154
Dryden XXII Senior Loan Fund Series 2011-22A, Class A1R
1.40%, 01/15/22^a,b		1,420		1,418,224
DT Auto Owner Trust Series 2014-1A, Class B
1.43%, 03/15/18^a		2,000		2,006,468
Eagle Creek CLO Ltd. Series 2006-1A, Class B
1.14%, 02/28/18^a,b		1,330		1,321,466
Ford Credit Auto Owner Trust Series 2012-B, Class D
2.93%, 10/15/18 (Call 05/15/16)		1,790		1,842,553
Ford Credit Floorplan Master Owner Trust A
Series 2010-3, Class C
4.99%, 02/15/17^a		150		152,363
Series 2012-2, Class D
3.50%, 01/15/19		1,885		1,967,987
ING Investment Management Co.Ltd. Series 2012-1RA, Class A1R
1.43%, 03/14/22^a,b		1,435		1,432,456
Katonah Ltd. Series 2007-10A, Class A2B
0.48%, 04/17/20^a,b		1,386		1,370,994
Mayport CLO Ltd. Series 2006-1A, Class A3L
0.88%, 02/22/20^a,b		2,070		2,047,185
MBNA Credit Card Master Note Trust Series 2005-B3, Class B3
0.38%, 03/19/18^c		590		735,693


SCHEDULESOF INVESTMENTS			13

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Navient Student Loan Trust Series 2014-CT, Class A
0.85%, 09/16/24^a,b	$	376	$	375,630
OHA Intrepid Leveraged Loan Fund Ltd. Series 2011-1AR, Class AR
1.15%, 04/20/21^a,b		987		982,462
OneMain Financial Issuance Trust Series 2014-2A, Class A
2.47%, 09/18/24^a		3,310		3,311,036
Palmer Square CLO Ltd. Series 2014-1A, Class A1
1.54%, 10/17/22^a,b		2,500		2,492,935
PFS Financing Corp.
Series 2014-AA, Class A
0.75%, 02/15/19^a,b		1,000		1,001,996
Series 2014-AA, Class B
1.10%, 02/15/19^a,b		1,100		1,102,113
Series 2014-BA, Class A
0.83%, 10/15/19^a,b		1,915		1,914,025
Regatta Funding Ltd. Series 2007-1A, Class A1L
0.48%, 06/15/20^a,b		891		880,867
Santander Drive Auto Receivables Trust
Series 2012-2, Class D
3.87%, 02/15/18 (Call 05/15/16)		2,000		2,068,482
Series 2012-AA, Class C
1.78%, 11/15/18^a		1,545		1,558,350
Series 2012-AA, Class D
2.46%, 12/17/18 (Call 10/15/16)^a		2,500		2,528,880
Series 2013-1, Class C
1.76%, 01/15/19		2,250		2,264,573
Series 2013-2, Class B
1.33%, 03/15/18		2,400		2,409,794
Series 2013-5, Class A2B
0.53%, 04/17/17^b		176		176,262
Series 2013-5, Class B
1.55%, 10/15/18		775		777,442
Series 2014-1, Class D
2.91%, 04/15/20 (Call 05/15/17)		2,345		2,366,668
Series 2014-3, Class B
1.45%, 05/15/19		785		785,523


Security	Principal (000s)		Value

Series 2014-4, Class A3
1.08%, 09/17/18 (Call 11/15/16)	$	1,375	$	1,378,220
Series 2014-S1, Class R
1.42%, 08/16/18^a		804		804,005
Silver Bay Realty 2014-1 Trust
1.15%, 09/17/31^a,b		1,042		1,031,891
SLM Private Credit Student Loan Trust
Series 2004-B, Class A2
0.43%, 06/15/21^b		2,879		2,864,524
Series 2005-A, Class A2
0.37%, 12/15/20^b		1,245		1,244,647
SLM Private Education Loan Trust
Series 2011-A, Class A1
1.15%, 10/15/24^a,b		1,125		1,130,760
Series 2011-C, Class A1
1.55%, 12/15/23^a,b		1,180		1,188,427
Series 2012-B, Class A2
3.48%, 10/15/30^a		1,250		1,304,316
Series 2013-A, Class A1
0.75%, 08/15/22^a,b		1,616		1,617,706
Series 2013-C, Class A2B
1.55%, 10/15/31^a,b		1,750		1,781,883
Series 2014-A, Class A1
0.75%, 07/15/22^a,b		2,446		2,444,393
SLM Student Loan Trust
Series 2004-A, Class A2
0.43%, 03/16/20^b		721		719,654
Series 2006-4, Class A5
0.33%, 10/27/25^b		2,652		2,646,452
Series 2006-A, Class A4
0.42%, 12/15/23^b		1,125		1,113,301
Series 2011-C, Class A2A
3.40%, 10/17/44^a,b		2,000		2,160,450
Series 2012-A, Class A1
1.55%, 08/15/25^a,b		996		1,006,495
Series 2012-C, Class A1
1.25%, 08/15/23^a,b		2,054		2,065,420
Series 2012-E, Class A1
0.90%, 10/16/23^a,b		919		921,469
Series 2012-E, Class A2B
1.90%, 06/15/45^a,b		250		257,274
Series 2013-A, Class A2B
1.20%, 05/17/27^a,b		265		266,632


14		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Series 2013-B, Class A1
0.80%, 07/15/22^a,b	$	1,808	$	1,808,198
Series 2013-C, Class A1
1.00%, 02/15/22^a,b		1,810		1,817,514
Wheels SPV 2 LLC Series 2014-1A, Class A2
0.84%, 03/20/23^a		580		578,837

TOTAL ASSET-BACKED SECURITIES
(Cost: $98,499,353)				98,398,575

COLLATERALIZED MORTGAGE OBLIGATIONS — 14.82%

MORTGAGE-BACKED SECURITIES — 14.82%
Banc of America Commercial Mortgage Trust Series 2007-3, Class A1A
5.56%, 06/10/49^b		1,071		1,158,876
Banc of America Merrill Lynch Commercial Mortgage Inc.
Series 2005-4, Class A5A
4.93%, 07/10/45		526		536,006
Series 2005-4, Class A5B
5.00%, 07/10/45^b		2,730		2,798,922
Series 2006-2, Class A4
5.73%, 05/10/45^b		1,925		2,023,188
Banc of America Merrill Lynch Commercial Mortgage Securities Trust Series 2013-DSNY, Class A
1.20%, 09/15/26^a,b		525		524,346
Bear Stearns Commercial Mortgage Securities Inc.
Series 2005-PWR7, Class A3
5.12%, 02/11/41^b		2,197		2,206,669
Series 2005-PWR8, Class A4
4.67%, 06/11/41		209		211,181
Series 2006-PW12, Class A4
5.70%, 09/11/38^b		1,228		1,300,519
Series 2006-PW14, Class A1A
5.19%, 12/11/38		218		233,736
Series 2007-PW15, Class A1A
5.32%, 02/11/44		259		278,760


Security	Principal (000s)		Value

Brunel Residential Mortgage Securitisation PLC Series 2007-1A, Class A4C
0.43%, 01/13/39 (Call 01/13/15)^a,b	$	1,757	$	1,741,685
Citigroup Commercial Mortgage Trust
Series 2006-C5, Class A4
5.43%, 10/15/49		2,000		2,130,460
Series 2014-388G, Class A
0.90%, 06/15/33^a,b		2,125		2,123,438
COMM Mortgage Trust
Series 2006-C7, Class A4
5.76%, 06/10/46^b		1,866		1,972,175
Series 2007-C9, Class A4
5.80%, 12/10/49^b		1,320		1,452,614
Series 2014-PAT, Class A
0.95%, 08/13/27^a,b		2,200		2,192,458
Credit Suisse Commercial Mortgage Trust
Series 2006-C1, Class AJ
5.46%, 02/15/39^b		791		825,594
Series 2006-C5, Class A3
5.31%, 12/15/39		498		529,443
Series 2014-SURF, Class A
1.01%, 02/15/29^a,b		2,000		2,001,376
DBRR Trust Series 2013-EZ2, Class A
0.85%, 02/25/45 (Call 12/17/14)^a,b		1,097		1,096,246
FCT Marsollier Mortgages Series 2009-1, Class A
0.58%, 09/27/50^b,c	EUR	480		598,470
GMAC Commercial Mortgage Securities Inc. Series 2006-C1, Class A1A
5.23%, 11/10/45^b	$	1,837		1,905,758
Granite Master Issuer PLC
Series 2004-1, Class 2A1
0.55%, 03/20/44^b		1,119		1,113,173
Series 2005-1, Class A4
0.36%, 12/20/54^b		444		442,040
Series 2006-1A, Class A5
0.30%, 12/20/54^a,b		640		635,185


SCHEDULESOF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Series 2006-3, Class A3
0.24%, 12/20/54^b	$	1,870	$	1,854,618
Series 2006-3, Class A4
0.24%, 12/20/54^b		505		500,581
Series 2007-1, Class 2A1
0.30%, 12/20/54^b		765		759,088
Series 2007-2, Class 2A1
0.23%, 12/17/54^b		605		599,817
Series 2007-2, Class 3A1
0.33%, 12/17/54^b		820		815,064
Series 2007-2, Class 4A1
0.24%, 12/17/54^b		153		151,553
GS Mortgage Securities Trust Series 2006-GG8, Class AM
5.59%, 11/10/39 (Call 10/06/16)		1,000		1,072,347
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2005-CB13, Class A4
5.24%, 01/12/43^b		801		826,441
Series 2006-LDP9, Class A3
5.34%, 05/15/47		2,464		2,633,064
Series 2007-CB18, Class A1A
5.43%, 06/12/47^b		248		266,917
Series 2007-CB18, Class A4
5.44%, 06/12/47		1,931		2,075,711
Series 2007-CB20, Class A4
5.79%, 02/12/51^b		1,895		2,071,144
LB-UBS Commercial Mortgage Trust
Series 06–C4, Class AM
5.85%, 06/15/38^b		1,250		1,337,087
Series 2006-C7, Class A3
5.35%, 11/15/38		525		564,254
Series 2007-C2, Class A3
5.43%, 02/15/40		1,976		2,139,137
ML-CFC Commercial Mortgage Trust Series 2007-9, Class A4
5.70%, 09/12/49		1,425		1,554,856
Morgan Stanley Capital I Inc.
Series 2006-IQ12, Class A1A
5.32%, 12/15/43		389		416,704
Series 2007-IQ15, Class A4
5.91%, 06/11/49^b		1,679		1,842,926
Series 2007-T25, Class A3
5.51%, 11/12/49^b		493		530,527


Security	Principal (000s)		Value

Morgan Stanley Capital I Trust
Series 2006-HQ9, Class A4FL
0.30%, 07/12/44^b	$	3,822	$	3,808,298
Series 2007-HQ11, Class A4FL
0.29%, 02/12/44^b		1,960		1,943,720
Morgan Stanley Re-REMIC Trust Series 2011-IO, Class B
0.00%, 03/23/51^a		1,152		1,139,156
Puma Finance Ltd. Series G5, Class A1
0.37%, 02/21/38^a,b		664		658,925
Wachovia Bank Commercial Mortgage Trust
Series 2006-C24, Class A3
5.56%, 03/15/45^b		205		213,113
Series 2006-C29, Class A1A
5.30%, 11/15/48		238		255,626

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost: $62,217,252)				62,062,992

CORPORATE BONDS & NOTES — 55.67%

ADVERTISING — 0.18%
Omnicom Group Inc.
5.90%, 04/15/16		700		748,063

				748,063
AGRICULTURE — 1.98%
Altria Group Inc.
4.13%, 09/11/15		200		205,923
BAT International Finance PLC
1.40%, 06/05/15^a		1,000		1,004,070
Bunge Ltd. Finance Corp.
5.10%, 07/15/15		2,500		2,575,470
Lorillard Tobacco Co.
3.50%, 08/04/16		1,400		1,451,776
Reynolds American Inc.
1.05%, 10/30/15		3,035		3,040,791

				8,278,030
AIRLINES — 1.07%
Continental Airlines Inc. 2009-1 Pass Through Trust Series 09-1
9.00%, 01/08/18		2,612		2,899,610


16		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Delta Air Lines 2010-1 Class B Pass Through Trust Series 101B
6.38%, 07/02/17^a	$	1,500	$	1,563,750

				4,463,360
AUTO MANUFACTURERS — 1.43%
Daimler Finance North America LLC
0.58%, 08/01/17^a,b		1,700		1,697,693
2.63%, 09/15/16^a		1,000		1,028,754
3.00%, 03/28/16^a		750		772,025
Nissan Motor Acceptance Corp.
0.78%, 03/03/17^a,b		250		250,520
0.94%, 09/26/16^a,b		750		754,791
1.00%, 03/15/16^a		1,500		1,501,408

				6,005,191
BANKS — 17.80%
Abbey National Treasury Services PLC/London
4.00%, 04/27/16		1,750		1,829,583
ABN AMRO Bank NV
1.03%, 10/28/16^a,b		635		639,953
Bank of America Corp.
1.05%, 03/22/16^b		2,750		2,764,140
1.35%, 11/21/16		300		300,269
3.63%, 03/17/16		5,250		5,435,440
3.70%, 09/01/15		1,000		1,023,500
Series B
5.30%, 09/30/15		700		727,930
Banque Federative du Credit Mutuel SA
1.08%, 01/20/17^a,b,d		1,000		1,007,897
Barclays Bank PLC
0.81%, 02/17/17^b		3,150		3,157,853
BNP Paribas SA
0.82%, 12/12/16^b		750		752,675
3.60%, 02/23/16		1,000		1,035,274
BPCE SA
0.86%, 06/17/17^b		700		700,541
1.08%, 02/10/17^b		1,900		1,917,058
Capital One Financial Corp.
1.00%, 11/06/15		2,220		2,225,639
3.15%, 07/15/16^d		1,400		1,449,829
5.50%, 06/01/15		1,250		1,284,415


Security	Principal (000s)		Value

Citigroup Inc.
1.19%, 07/25/16^b	$	975	$	984,406
1.25%, 01/15/16		1,074		1,078,577
4.59%, 12/15/15		145		151,044
Danske Bank A/S
3.75%, 04/01/15^a		1,000		1,012,642
Deutsche Bank AG/London
3.25%, 01/11/16		500		514,544
Deutsche Bank Financial LLC
5.38%, 03/02/15		1,100		1,115,967
Fifth Third Bancorp
0.65%, 12/20/16^b		750		746,842
3.63%, 01/25/16		2,250		2,325,589
Goldman Sachs Group Inc. (The)
0.68%, 03/22/16^b		4,665		4,660,195
1.60%, 11/23/15		1,700		1,713,382
3.63%, 02/07/16		1,750		1,806,040
5.35%, 01/15/16		2,500		2,635,837
Huntington National Bank (The)
0.66%, 04/24/17 (Call 03/25/17)^b		1,405		1,405,181
ING Bank NV
1.18%, 03/07/16^a,b		800		806,538
4.00%, 03/15/16^a,d		1,250		1,300,996
Intesa Sanpaolo SpA
3.13%, 01/15/16		1,600		1,633,610
3.63%, 08/12/15^a		200		203,575
JPMorgan Chase & Co.
0.85%, 02/26/16^b		1,575		1,580,180
3.45%, 03/01/16		3,800		3,925,860
5.15%, 10/01/15		1,700		1,765,863
5.25%, 05/01/15		2,150		2,197,549
KeyCorp
3.75%, 08/13/15		2,250		2,303,266
Morgan Stanley
1.48%, 02/25/16^b		1,750		1,771,670
3.80%, 04/29/16		500		519,693
5.38%, 10/15/15		1,350		1,409,231
6.00%, 04/28/15		370		379,545
MUFG Union Bank N.A.
0.99%, 09/26/16^b		1,000		1,007,734
Regions Financial Corp.
7.75%, 11/10/14		750		750,762
Royal Bank of Scotland Group PLC
1.17%, 03/31/17^b		1,150		1,153,811


SCHEDULESOF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Royal Bank of Scotland PLC (The)
3.95%, 09/21/15^d	$	160	$	164,453
Standard Chartered PLC
3.20%, 05/12/16^a		730		754,435
State Bank of India/London
4.50%, 07/27/15^c		750		767,714
Sumitomo Mitsui Trust Bank Ltd.
1.01%, 09/16/16^a,b		500		502,971
Wachovia Corp.
0.60%, 10/15/16^b		3,250		3,246,682

				74,548,380
BEVERAGES — 0.07%
Coca-Cola Enterprises Inc.
2.13%, 09/15/15		300		303,428

				303,428
CHEMICALS — 0.52%
Airgas Inc.
3.25%, 10/01/15 (Call 09/01/15)		665		680,124
Ecolab Inc.
1.00%, 08/09/15^d		1,500		1,504,829

				2,184,953
COMMERCIAL SERVICES — 0.53%
ERAC USA Finance LLC
1.40%, 04/15/16^a		410		412,786
5.60%, 05/01/15^a		1,359		1,390,201
5.90%, 11/15/15^a		400		420,986

				2,223,973
COMPUTERS — 0.73%
Computer Sciences Corp.
2.50%, 09/15/15		725		735,208
Hewlett-Packard Co.
2.13%, 09/13/15		1,750		1,769,794
2.35%, 03/15/15		550		553,304

				3,058,306
DIVERSIFIED FINANCIAL SERVICES — 4.58%
Air Lease Corp.
4.50%, 01/15/16		2,300		2,374,750
Bear Stearns Companies Inc. (The)
5.30%, 10/30/15		700		732,119
Caisse Centrale Desjardins
0.58%, 09/12/17^a,b		3,800		3,799,993
Ford Motor Credit Co. LLC
1.48%, 05/09/16^b		1,500		1,518,486


Security	Principal (000s)		Value

1.70%, 05/09/16	$	250	$	251,865
2.50%, 01/15/16		1,000		1,016,976
4.21%, 04/15/16		3,500		3,652,544
5.63%, 09/15/15		260		270,591
12.00%, 05/15/15		1,200		1,270,400
Harley-Davidson Financial Services Inc.
1.15%, 09/15/15^a		1,200		1,205,294
HSBC Finance Corp.
0.66%, 06/01/16^b		2,025		2,024,133
5.00%, 06/30/15		1,025		1,052,417

				19,169,568
ELECTRIC — 2.65%
Duke Energy Florida Inc.
0.65%, 11/15/15		370		370,624
Jersey Central Power & Light Co.
5.63%, 05/01/16		1,500		1,597,188
LG&E and KU Energy LLC
2.13%, 11/15/15		1,233		1,248,224
Nevada Power Co. Series M
5.95%, 03/15/16		1,091		1,165,073
Oncor Electric Delivery Co. LLC
6.38%, 01/15/15		2,415		2,442,828
Progress Energy Inc.
5.63%, 01/15/16		2,225		2,349,720
Southern Power Co. Series D
4.88%, 07/15/15		1,871		1,923,921

				11,097,578
ELECTRONICS — 0.30%
Thermo Fisher Scientific Inc.
3.20%, 05/01/15		1,000		1,011,808
3.20%, 03/01/16		239		246,350

				1,258,158
FOOD — 0.25%
Nabisco Inc.
7.55%, 06/15/15		1,000		1,041,654

				1,041,654
FOREST PRODUCTS & PAPER — 0.39%
Georgia-Pacific LLC
7.70%, 06/15/15		1,000		1,041,229
International Paper Co.
5.30%, 04/01/15		594		604,984

				1,646,213


18		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

HEALTH CARE — PRODUCTS — 1.27%
Covidien International Finance SA
1.35%, 05/29/15	$	1,000	$	1,004,749
2.80%, 06/15/15^d		370		375,213
Life Technologies Corp.
3.50%, 01/15/16		3,810		3,922,993

				5,302,955
HEALTH CARE — SERVICES — 0.18%
Coventry Health Care Inc.
6.13%, 01/15/15		750		757,964

				757,964
INSURANCE — 2.26%
American International Group Inc.
2.38%, 08/24/15		1,555		1,573,414
5.05%, 10/01/15		1,187		1,234,125
Aon Corp.
3.50%, 09/30/15		1,656		1,698,478
Hartford Financial Services Group Inc. (The)
4.00%, 03/30/15		2,000		2,027,192
Liberty Mutual Group Inc.
6.70%, 08/15/16^a		785		860,330
Manulife Financial Corp.
3.40%, 09/17/15		1,448		1,483,431
Prudential Financial Inc. Series D
4.75%, 09/17/15		585		605,170

				9,482,140
LEISURE TIME — 0.96%
Carnival Corp.
1.20%, 02/05/16		4,000		4,004,676

				4,004,676
MANUFACTURING — 0.31%
Pentair Finance SA
1.35%, 12/01/15		1,300		1,304,211

				1,304,211
MEDIA — 1.68%
COX Communications Inc.
5.50%, 10/01/15		1,850		1,931,468
DIRECTV Holdings LLC/DIRECTV Financing Co. Inc.
3.13%, 02/15/16		3,900		4,007,180


Security	Principal (000s)		Value

Time Warner Cable Inc.
3.50%, 02/01/15	$	1,100	$	1,107,544

				7,046,192
MINING — 0.49%
Freeport-McMoRan Inc.
1.40%, 02/13/15		2,026		2,029,203

				2,029,203
OIL & GAS — 1.51%
Anadarko Petroleum Corp.
5.95%, 09/15/16		1,300		1,412,654
Marathon Oil Corp.
0.90%, 11/01/15		1,200		1,201,117
Noble Holding International Ltd.
3.45%, 08/01/15		1,500		1,525,527
Pioneer Natural Resources Co.
5.88%, 07/15/16		1,300		1,397,611
Sunoco Inc.
9.63%, 04/15/15		752		780,453

				6,317,362
OIL & GAS SERVICES — 0.70%
Weatherford International Ltd./Bermuda
5.50%, 02/15/16		2,781		2,936,494

				2,936,494
PHARMACEUTICALS — 2.68%
AbbVie Inc.
1.20%, 11/06/15		1,850		1,860,452
Express Scripts Holding Co.
3.13%, 05/15/16		2,000		2,070,614
McKesson Corp.
0.95%, 12/04/15		587		588,290
3.25%, 03/01/16		2,400		2,469,922
Mylan Inc./PA
1.80%, 06/24/16		500		506,267
7.88%, 07/15/20 (Call 07/15/15)^a		776		835,223
Zoetis Inc.
1.15%, 02/01/16		2,900		2,906,571

				11,237,339
REAL ESTATE INVESTMENT TRUSTS — 4.30%
American Tower Corp.
4.63%, 04/01/15		3,300		3,352,269


SCHEDULESOF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Boston Properties LP
5.00%, 06/01/15	$	1,175	$	1,204,105
5.63%, 04/15/15		200		204,448
ERP Operating LP
5.38%, 08/01/16		900		968,422
6.58%, 04/13/15		570		585,014
HCP Inc.
3.75%, 02/01/16		1,250		1,294,327
6.00%, 03/01/15		1,150		1,170,283
7.07%, 06/08/15		1,375		1,423,969
Health Care REIT Inc.
5.88%, 05/15/15		2,100		2,157,429
Host Hotels & Resorts LP
5.88%, 06/15/19 (Call 06/15/15)		2,420		2,549,893
Nationwide Health Properties Inc.
6.00%, 05/20/15		1,975		2,031,317
Ventas Realty LP/Ventas Capital Corp.
3.13%, 11/30/15		1,050		1,076,336

				18,017,812
RETAIL — 0.91%
AutoZone Inc.
5.75%, 01/15/15		1,500		1,514,854
CVS Health Corp.
3.25%, 05/18/15		193		195,831
Macy’s Retail Holdings Inc.
7.88%, 07/15/15		2,000		2,098,972

				3,809,657
SAVINGS & LOANS — 0.38%
Amsouth Bank/Birmingham AL Series AI
5.20%, 04/01/15		250		254,208
Santander Holdings USA Inc./PA
3.00%, 09/24/15 (Call 08/24/15)		1,000		1,016,881
4.63%, 04/19/16		319		335,547

				1,606,636
SOFTWARE — 0.38%
Fiserv Inc.
3.13%, 10/01/15		945		965,601
3.13%, 06/15/16		600		619,783

				1,585,384
TELECOMMUNICATIONS — 1.33%
America Movil SAB de CV
5.75%, 01/15/15		1,300		1,311,648


Security	Principal (000s)		Value

Verizon Communications Inc.
1.76%, 09/15/16^b	$	3,250	$	3,323,375
4.90%, 09/15/15		400		415,104
Vodafone Group PLC
0.62%, 02/19/16^b		500		501,008

				5,551,135
TRANSPORTATION — 1.86%
Asciano Finance Ltd.
3.13%, 09/23/15^a		1,185		1,205,215
CSX Corp.
6.25%, 04/01/15		417		426,868
JB Hunt Transport Services Inc.
3.38%, 09/15/15		857		877,548
Kansas City Southern de Mexico SA de CV
0.93%, 10/28/16^b		1,000		1,000,404
Ryder System Inc.
3.15%, 03/02/15		1,385		1,396,555
7.20%, 09/01/15		1,000		1,053,224
Union Pacific Corp.
7.00%, 02/01/16		1,700		1,822,268

				7,782,082
TRUCKING & LEASING — 1.99%
GATX Corp.
4.75%, 05/15/15		825		841,750
GATX Financial Corp.
5.70%, 04/15/15^d		1,000		1,022,027
Penske Truck Leasing Co. LP/PTL Finance Corp.
2.50%, 03/15/16^a		2,453		2,500,416
3.13%, 05/11/15^a		3,905		3,949,974

				8,314,167

TOTAL CORPORATE BONDS & NOTES
(Cost: $233,284,942)				233,112,264

MUNICIPAL DEBT OBLIGATIONS — 0.34%

CALIFORNIA — 0.34%
State of California GO
0.85%, 02/01/15		1,435		1,437,253

				1,437,253

TOTAL MUNICIPAL DEBT OBLIGATIONS
(Cost: $1,435,534)				1,437,253


20		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® SHORT MATURITY BOND ETF

October 31, 2014


Security	Principal or Shares (000s)		Value

SHORT-TERM INVESTMENTS — 6.91%

MONEY MARKET FUNDS — 6.91%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^e,f,g	$	2,507	$	2,506,812
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		240		240,368
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		26,169		26,169,256

				28,916,436

TOTAL SHORT-TERM INVESTMENTS (Cost: $28,916,436)				28,916,436

TOTAL INVESTMENTS IN SECURITIES — 101.24% (Cost: $424,353,517)				423,927,520
Other Assets, Less Liabilities — (1.24)%				(5,195,129	)

NET ASSETS — 100.00%			$	418,732,391


EUR		— Euro
GO		— General Obligation
USD		— United States Dollar

^a	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^b	Variable rate security. Rate shown is as of report date.

^c	This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^d	All or a portion of this security represents a security on loan. See Note 1.

^e	Affiliated issuer. See Note 2.

^f	The rate quoted is the annualized seven-day yield of the fund at period end.

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

Forward currency contracts as of October 31, 2014 were as follows:

Currency
to be
Delivered

Currency
to be
Received

Settlement
Date

Counter-

party

Unrealized
Appreciation
(Depreciation)

EUR 1,058,626

USD 1,350,648

1/21/15

JPM

23,603

Counterparties:

JPM — JPMorgan Chase Bank N.A.

See notes to financial statements.


SCHEDULESOF INVESTMENTS			21

Statements of Assets and Liabilities

iSHARES^® U.S. ETF TRUST

October 31, 2014


	iShares Liquidity Income ETF		iShares Short Maturity Bond ETF

ASSETS
Investments, at cost:
Unaffiliated	$	12,024,577	$	395,437,081
Repurchase agreements — unaffiliated		2,625,000		—
Affiliated (Note 2)		604,619		28,916,436

Total cost of investments	$	15,254,196	$	424,353,517

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	12,043,255	$	395,011,084
Repurchase agreements — unaffiliated		2,625,000		—
Affiliated (Note 2)		604,619		28,916,436

Total fair value of investments		15,272,874		423,927,520
Foreign currency, at value^b		—		1,014
Cash		157		—
Receivables:
Investment securities sold		—		1,590,049
Interest		10,947		2,202,090
Unrealized appreciation on forward currency contracts (Note 1)		—		23,603
Capital shares sold		—		5,018,135

Total Assets		15,283,978		432,762,411


LIABILITIES
Payables:
Investment securities purchased		—		9,608,916
Collateral for securities on loan (Note 1)		257,500		2,747,180
Due to custodian		—		1,590,049
Investment advisory fees (Note 2)		2,519		83,875

Total Liabilities		260,019		14,030,020


NET ASSETS	$	15,023,959	$	418,732,391


Net assets consist of:
Paid-in capital	$	14,986,905	$	418,800,480
Undistributed net investment income		8,549		220,189
Undistributed net realized gain		9,827		114,140
Net unrealized appreciation (depreciation)		18,678		(402,418	)

NET ASSETS	$	15,023,959	$	418,732,391


Shares outstanding^c		300,000		8,350,000


Net asset value per share	$	50.08	$	50.15

^a	Securities on loan with values of $250,085 and $2,678,292, respectively. See Note 1.

^b	Cost of foreign currency: $ — and $1,032, respectively.

^c	No par value, unlimited number of shares authorized.

See notes to financial statements.


22		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Statements of Operations

iSHARES^® U.S. ETF TRUST

Year ended October 31, 2014


	iShares Liquidity Income ETF^a		iShares Short Maturity Bond ETF

NET INVESTMENT INCOME
Interest — unaffiliated	$	110,157	$	2,886,982
Interest — affiliated (Note 2)		437		12,299
Securities lending income — affiliated (Note 2)		447		3,561

Total investment income		111,041		2,902,842


EXPENSES
Investment advisory fees (Note 2)		37,636		646,592

Total expenses		37,636		646,592

Net investment income		73,405		2,256,250


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		9,827		30,369
Foreign currency transactions		—		52,068

Net realized gain		9,827		82,437

Net change in unrealized appreciation/depreciation on:
Investments		18,678		(444,673	)
Forward currency contracts		—		20,418
Translation of assets and liabilities in foreign currencies		—		(18	)

Net change in unrealized appreciation/depreciation		18,678		(424,273	)

Net realized and unrealized gain (loss)		28,505		(341,836	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	101,910	$	1,914,414

^a	For the period from December 11, 2013 (commencement of operations) to October 31, 2014.

See notes to financial statements.


FINANCIAL STATEMENTS			23

Statements of Changes in Net Assets

iSHARES^® U.S. ETF TRUST


	iShares Liquidity Income ETF			iShares Short Maturity Bond ETF
	Period from December 11, 2013^a to October 31, 2014			Year ended October 31, 2014			Period from September 25, 2013^a to October 31, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	73,405		$	2,256,250		$	26,162
Net realized gain (loss)		9,827			82,437			(829	)
Net change in unrealized appreciation/depreciation		18,678			(424,273	)		21,855

Net increase in net assets resulting from operations		101,910			1,914,414			47,188


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(64,856	)		(2,029,397	)		—

Total distributions to shareholders		(64,856	)		(2,029,397	)		—


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		27,504,454			358,853,096			102,586,403
Cost of shares redeemed		(12,517,549	)		(42,639,313	)		—

Net increase in net assets from capital share transactions		14,986,905			316,213,783			102,586,403

INCREASE IN NET ASSETS		15,023,959			316,098,800			102,633,591

NET ASSETS
Beginning of period		—			102,633,591			—

End of period	$	15,023,959		$	418,732,391		$	102,633,591

Undistributed net investment income included in net assets at end of period	$	8,549		$	220,189		$	25,018


SHARES ISSUED AND REDEEMED
Shares sold		550,000			7,150,000			2,050,000
Shares redeemed		(250,000	)		(850,000	)		—

Net increase in shares outstanding		300,000			6,300,000			2,050,000

^a	Commencement of operations.

See notes to financial statements.


24		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

iSHARES^® U.S. ETF TRUST

(For a share outstanding throughout the period)

iShares Liquidity Income ETF


	Period from Dec. 11, 2013^a to Oct. 31, 2014
Net asset value, beginning of period	$	49.99

Income from investment operations:
Net investment income^b		0.16
Net realized and unrealized gain^c		0.06

Total from investment operations		0.22

Less distributions from:
Net investment income		(0.13	)

Total distributions		(0.13	)

Net asset value, end of period	$	50.08


Total return		0.45	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	15,024
Ratio of expenses to average net assets^e		0.18	%
Ratio of net investment income to average net assets^e		0.35	%
Portfolio turnover rate^f		71	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			25

Financial Highlights (Continued)

iSHARES^® U.S. ETF TRUST

(For a share outstanding throughout each period)

iShares Short Maturity Bond ETF


	Year ended Oct. 31, 2014			Period from Sep. 25, 2013^a to Oct. 31, 2013
Net asset value, beginning of period	$	50.07		$	50.00

Income from investment operations:
Net investment income^b		0.44			0.02
Net realized and unrealized gain^c		0.04			0.05

Total from investment operations		0.48			0.07

Less distributions from:
Net investment income		(0.40	)		—

Total distributions		(0.40	)		—

Net asset value, end of period	$	50.15		$	50.07


Total return		0.96	%		0.14	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	418,732		$	102,634
Ratio of expenses to average net assets^e		0.25	%		0.25	%
Ratio of net investment income to average net assets^e		0.87	%		0.42	%
Portfolio turnover rate^f		35	%		2	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


26		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements

iSHARES^® U.S. ETF TRUST

iShares U.S. ETF 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 was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated June 21, 2011.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF		Diversification Classification
Liquidity Income^a		Diversified
Short Maturity Bond		Non-diversified

The Fund commenced operations on December 11, 2013.

Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses 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 in the Financial Accounting Standards Board Accounting Standards Codification Topic 946 (ASC 946).

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

•

Fixed income investments are valued at the last available bid price received from independent pricing services. In determining the value of a fixed income investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).


NOTESTO FINANCIAL STATEMENTS			27

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

•

Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies.

•

Repurchase agreements are valued at amortized cost, which approximates market value.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued based upon other available factors deemed relevant by the Global Valuation Committee, in accordance with policies approved by the Board. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and is not necessarily an indication of the risk associated with investing in the instrument. The three levels of the fair value hierarchy are as follows:

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.


28		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of October 31, 2014. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.


iShares ETF and Investment Type	Investments
iShares ETF and Investment Type	Level 1		Level 2		Level 3		Total
Liquidity Income
Assets:
Asset-Backed Securities	$	—	$	1,481,979	$	—	$	1,481,979
Certificates of Deposit		—		822,736		—		822,736
Commercial Paper		—		848,503		—		848,503
Corporate Bonds & Notes		—		8,389,037		501,000		8,890,037
Repurchase Agreements		—		2,625,000		—		2,625,000
Money Market Funds		604,619		—		—		604,619

	$	604,619	$	14,167,255	$	501,000	$	15,272,874

Short Maturity Bond
Assets:
Asset-Backed Securities	$	—	$	97,594,570	$	804,005	$	98,398,575
Collateralized Mortgage Obligations		—		59,827,590		2,235,402		62,062,992
Corporate Bonds & Notes		—		233,112,264		—		233,112,264
Municipal Debt Obligations		—		1,437,253		—		1,437,253
Money Market Funds		28,916,436		—		—		28,916,436
Forward Currency Contracts^a		—		23,603		—		23,603

	$	28,916,436	$	391,995,280	$	3,039,407	$	423,951,123

Shown at the unrealized appreciation (depreciation) on the contracts.

The following table includes a rollforward for the year ended October 31, 2014 of investments whose values are classified as Level 3 as of the beginning or end of the year.


iShares Liquidity Income ETF	Corporate Bonds & Notes
Balance at beginning of period	$	—
Realized gain (loss) and change in unrealized appreciation/depreciation		1,000
Purchases		500,000
Sales		—
Transfers in^a		—
Transfers out^a		—

Balance at end of period^b	$	501,000

Net change in unrealized appreciation/depreciation on investments still held at end of period	$	1,000

Represents the value as of the beginning of the reporting period.

The Fund’s investments that are categorized as Level 3 were valued utilizing a single broker quote without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value in such Level 3 investments.


NOTESTO FINANCIAL STATEMENTS			29

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on the accrual basis.

REPURCHASE AGREEMENTS

The Funds may enter into repurchase agreements. In a repurchase agreement, a Fund purchases a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed repurchase amount. The agreements are conditioned upon the collateral being deposited under the Federal Reserve book entry system or held in a segregated account by the Fund’s custodian or designated sub-custodians under tri-party repurchase agreements. In the event the counterparty defaults and the fair value of the collateral declines, the Fund could experience losses, delays and costs in liquidating the collateral.

Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (each, an “MRA”). The MRA permits the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, the Fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund would recognize a liability with respect to such excess collateral. The liability reflects the Fund’s obligation under bankruptcy law to return the excess to the counterparty.

The following table summarizes the Funds’ open repurchase agreements as of October 31, 2014 which are subject to offset under an MRA:


iShares ETF	Market Value of Repurchase Agreements		Non-cash Collateral Received^a		Net Amount
Liquidity Income	$	2,625,000	$	2,625,000	$	—

Collateral received in excess of the market value of repurchase agreements is not presented for financial reporting purposes. The total collateral received is disclosed in the Fund’s schedule of investments.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.


30		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their 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 October 31, 2014, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

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.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment 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 a 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 value of the loaned securities plus the interest accrued on such securities, if any, 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 plus accrued interest, if any. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds 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. 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.

Any cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of October 31, 2014, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. The value of any securities on loan as of October 31, 2014 and the value of the related collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.


NOTESTO FINANCIAL STATEMENTS			31

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

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, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of each Fund’s securities lending agreements which are subject to offset under an MSLA as of October 31, 2014:


iShares ETF	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Liquidity Income	$	250,085	$	250,085	$	—
Short Maturity Bond		2,678,292		2,678,292		—

Collateral received in excess of the market value of securities on loan is not presented for financial reporting purposes. The total collateral received is disclosed in each Fund’s statement of assets and liabilities.

RECENT ACCOUNTING STANDARD

In June 2014, the Financial Accounting Standards Board issued guidance to improve the financial reporting of reverse repurchase agreements and other similar transactions. The guidance will require expanded disclosure for entities that enter into reverse repurchase agreements and similar transactions accounted for as secured borrowings, including securities lending. The guidance is effective for financial statements for fiscal years beginning after December 15, 2014, and interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Funds’ financial statements and disclosures.

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

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 interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

BFA has entered into a sub-advisory agreement with BlackRock Financial Management, Inc. (the “Sub-Adviser”), an affiliate of BFA, under which BFA pays the Sub-Adviser for services it provides to the iShares Short Maturity Bond ETF. The sub-advisory agreement will terminate effective December 4, 2014.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee based on the average daily net assets of each Fund as follows:


iShares ETF	Investment Advisory Fee
Liquidity Income		0.18	%
Short Maturity Bond		0.25


32		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013 and pursuant to a securities lending agreement, (i) each Fund will receive for the remainder of that calendar year 80% of securities lending income and (ii) the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended October 31, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares ETF	Fees Paid to BTC
Liquidity Income	$	186
Short Maturity Bond		1,526

Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

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 included in “Interest – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended October 31, 2014 were as follows:


	U.S. Government Obligations				Other Securities
iShares ETF	Purchases		Sales		Purchases		Sales
Liquidity Income	$	999,531	$	1,001,122	$	19,316,310	$	8,374,004
Short Maturity Bond		—		—		379,425,371		81,362,235

There were no in-kind transactions for the year ended October 31, 2014.


NOTESTO FINANCIAL STATEMENTS			33

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

4.	*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 net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5.	*FORWARD CURRENCY CONTRACTS*

Each Fund may enter into forward currency contracts for the purpose of hedging against the effects of foreign currencies on the value of such Fund’s assets that are denominated in a non-U.S. currency. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange. The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. The Fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the Fund failing to close out its position due to an illiquid market.

The following table shows the value of forward currency contracts held by the iShares Short Maturity Bond ETF as of October 31, 2014 and the related locations in the statement of assets and liabilities, presented by risk exposure category:


Assets
Forward currency contracts:
Unrealized appreciation on forward currency contracts/ Net assets consist of — net unrealized appreciation	$	23,603


34		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

The following table shows the realized and unrealized gains (losses) on forward currency contracts held by the iShares Short Maturity Bond ETF during the year ended October 31, 2014 and the related locations in the statement of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Forward currency contracts:
Foreign currency transactions/Forward currency contracts	$	52,068	$	20,418

For the year ended October 31, 2014, the average quarter-end number of forward currency contracts and average amounts sold in U.S. dollars for the iShares Short Maturity Bond ETF were 2 and $3,607,611, respectively.

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Forward currency contracts held by the Funds generally do not require collateral. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.

The following table presents the exposure of the open forward currency contracts held by the iShares Short Maturity Bond ETF that are subject to potential offset on the statement of assets and liabilities as of October 31, 2014:


	Derivative Assets Subject to Offsetting		Derivatives Available for Offset		Net Amount of Derivative Assets
Forward currency contracts	$	23,603	$	—	$	23,603


NOTESTO FINANCIAL STATEMENTS			35

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

6.	*MARKET AND CREDIT RISK*

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its investment in fixed income and financial derivative instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s schedule of investments.

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.

Each Fund invests a substantial amount of its assets in securities of non-U.S. issuers that trade in non-U.S. markets. This involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets.

Each Fund invests a substantial amount of its assets in fixed-income securities. Changes in market interest rates or economic conditions, including the decision in December 2013 by the Federal Reserve Bank to taper its quantitative easing policy, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making them more volatile than securities with shorter durations. Given the environment of historically low interest rates, each Fund may be subject to a greater risk of price losses if interest rates rise.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that it 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 issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of each Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.


36		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

7.	*INCOME TAX INFORMATION*

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

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 net asset values per share. The following permanent differences as of October 31, 2014, attributable to foreign currency transactions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
Short Maturity Bond	$	294	$	(31,682	)	$	31,388

The tax character of distributions paid during the year ended October 31, 2014 was as follows:


iShares ETF	2014
Liquidity Income
Ordinary income	$	64,856

Short Maturity Bond
Ordinary income	$	2,029,397

As of October 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Net Unrealized Gains (Losses)^a			Total
Liquidity Income	$	18,376	$	18,678		$	37,054
Short Maturity Bond		229,156		(297,245	)		(68,089	)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the treatment of straddles.


NOTESTO FINANCIAL STATEMENTS			37

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

As of October 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Liquidity Income	$	15,254,196	$	20,254	$	(1,576	)	$	18,678
Short Maturity Bond		424,224,741		330,299		(627,520	)		(297,221	)

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2014, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

8.	*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 disclosure in the financial statements.


38		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares U.S. ETF Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Liquidity Income ETF and iShares Short Maturity Bond ETF (the “Funds”) at October 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

December 19, 2014


REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			39

Tax Information (Unaudited)

iSHARES^® U.S. ETF TRUST

Under Section 871(k)(1)(C) of the Internal Revenue Code, the Funds hereby designate the following maximum amounts allowable as interest-related dividends for the fiscal year ended October 31, 2014:


iShares ETF	Interest- Related Dividends
Liquidity Income	$	41,266
Short Maturity Bond		1,779,383


40		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

iSHARES^® U.S. ETF TRUST

I. iShares Liquidity Income ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Trustees. 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 Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other exchange traded funds (including funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Lipper’s judgment, pure index institutional mutual funds, objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine the Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine the Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Fund in all instances.


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			41

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^® U.S. ETF TRUST

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2013, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its respective performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Boards, was also considered.

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 Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. 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 appropriate officers 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 June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all 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 profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential


42		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^® U.S. ETF TRUST

economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds 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 and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board further noted management’s assertion that future economies of scale for the Fund had been taken into consideration by fixing the investment advisory fee rate at the low end of the market place, effectively giving Fund shareholders, from inception, the benefits of a lower fee. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. 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 exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			43

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^® U.S. ETF TRUST

connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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 further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the continuance of the Advisory Contract for the coming year.

II. iShares Short Maturity Bond ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”), and the Sub-Advisory Agreement between BFA and BlackRock Financial Management, Inc. (“BFM”) (the “Sub-Advisory Agreement”), on behalf of the Fund. The Advisory Contract and the Sub-Advisory Agreement are referred to hereafter as the “Advisory Agreements”. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreements. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 12, 2014, May 6, 2014, and May 12, 2014, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2014, management presented preliminary information to the Board relating to the continuance of the Advisory Agreements, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-13, 2014, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Agreements for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the additional information management provided at the request of the Independent Trustees. 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 Board also noted that the Board and BFA agreed to discuss potential enhancements and adjustments to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Agreements for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:


44		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^® U.S. ETF TRUST

proprietary ETF methodology (the “Lipper Group”). The Board noted that, prior to 2014, Lipper had used a different methodology to determine the Fund’s Lipper group, which included mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g. actively managed funds and funds sponsored by “at cost” service providers), as applicable. The Board further noted that, after consideration by the 15(c) Committee, the Board determined to use instead Lipper’s proprietary ETF methodology to determine the Fund’s Lipper Group. This determination was based on, among other considerations, the increased number and types of ETFs available for comparative purposes than was the case in prior years. The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. At the Board’s request, Lipper provided, and the Board considered, information on the impact to the iShares funds’ comparative fee rankings that were attributable to the change from a pure index group methodology to Lipper’s proprietary ETF methodology. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information provided in Lipper’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 for the Fund were lower than the median of the investment advisory fee rates and overall expenses of the funds in its Lipper Group. The Board also noted that BFA pays BFM for its sub-advisory services, and that there are no additional fees imposed on the Fund in respect of the services provided under the Sub-Advisory Agreement.

Nature, Extent and Quality of Services Provided by BFA and BFM or their Affiliates — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA (and any services provided by BFM on BFA’s behalf or at BFA’s direction) under the Advisory Agreements for the coming year as compared to the scope of services provided by BFA and BFM during prior years. In reviewing the scope of these services, the Board considered the investment philosophy and experience of BFA and BFM, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board also considered the compliance program of BFA and BFM and their compliance record with respect to the Fund. 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


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			45

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^® U.S. ETF TRUST

meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers 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 June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s and BFM’s portfolio compliance policies and procedures, and BFA’s oversight of the services provided by BFM. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA and BFM to the Fund under the Advisory Agreements supported the Board’s approval of the continuance of the Advisory Agreements 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 profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all 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 profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s 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 profits realized by BFA and its affiliates under the Advisory Agreements and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds 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 and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the continuance of the Advisory Agreements for the coming year.


46		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^® U.S. ETF TRUST

fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. 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 exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA and BFM generally do not use soft dollars or consider the value of research or other services that may be provided to BFA and BFM (including their affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreements for the coming year.


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			47

Supplemental Information (Unaudited)

iSHARES^® U.S. ETF TRUST

Section 19(a) Notices

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report distributions for federal income tax purposes.


	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
Short Maturity Bond	$	0.400049	$	—	$	—	$	0.400049		100	%		—	%		—	%		100	%

Premium/Discount Information

The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value. Net asset value, or “NAV,” is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of each Fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency distributions of premiums and discounts for each of the Funds included in this report. The information shown for each Fund is for five calendar years (or for each full calendar quarter completed after the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.


48		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® U.S. ETF TRUST

iShares Liquidity Income ETF

Period Covered: January 1, 2014 through September 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Between 0.5% and –0.5%		188		100.00	%

iShares Short Maturity Bond ETF

Period Covered: October 1, 2013 through September 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Between 0.5% and –0.5%		252		100.00	%


SUPPLEMENTAL INFORMATION			49

Trustee and Officer Information

iSHARES^® U.S. ETF TRUST

The Board of Trustees has responsibility for the overall management and operations of the Trust, 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. The President, Chief Compliance Officer, Treasurer and Secretary shall each hold office until their successors are chosen and qualify, and all other officers shall hold office until he or she resigns or is removed. 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 are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc., a Director of iShares MSCI Russia Capped ETF, Inc. and a Trustee of iShares Trust and, as a result, oversees a total of 294 funds (as of October 31, 2014) within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito and Mark Wiedman, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito and Mr. Wiedman is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Robert H. Silver as its Independent Chairman. 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

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.

Mark Wiedman 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.


50		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Independent Trustees



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert H. Silver (59)	Trustee (since 2011); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares, Inc. (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Independent Chairman of iShares, Inc., iShares MSCI Russia Capped ETF, Inc. and iShares Trust (since 2012).

Cecilia H. Herbert (65)	Trustee (since 2011); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of Forward Funds (34 portfolios) (since 2009).

Charles A. Hurty (71)	Trustee (since 2011); Audit Committee Chair (since 2011).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Trustee (since 2011); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010).


TRUSTEEAND OFFICER INFORMATION			51

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Independent Trustees (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
John E. Martinez (53)	Trustee (since 2011); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares, Inc. (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010).

George G.C. Parker (75)	Trustee (since 2011).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares, Inc. (since 2002); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Trustee (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares, Inc. (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011), Director, Cavium, Inc. (since 2013).


52		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (55)	Treasurer and Chief Financial Officer (since 2011).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (46)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2011).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (52)	Executive Vice President (since 2011).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2011).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


TRUSTEEAND OFFICER INFORMATION			53

Notes:


54		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q is available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily and monthly basis on the Funds’ website.

iS-AR-108-1014

OCTOBER 31, 2014


2014 ANNUAL REPORT

iShares U.S. ETF Trust

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iShares Interest Rate Hedged High Yield Bond ETF | HYGH | NYSE Arca

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iShares Interest Rate Hedged Corporate Bond ETF | LQDH | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			10
Shareholder Expenses			10
Schedules of Investments			11
iShares Interest Rate Hedged High Yield Bond ETF			11
iShares Interest Rate Hedged Corporate Bond ETF			12
Financial Statements			13
Financial Highlights			16
Notes to Financial Statements			18
Report of Independent Registered Public Accounting Firm			27
Tax Information			28
Board Review and Approval of Investment Advisory Contract			29
Supplemental Information			32
Trustee and Officer Information			34
Additional Financial Information as of October 31, 2014 (Unaudited)			38
Schedules of Investments			38
iShares iBoxx $ High Yield Corporate Bond ETF			38
iShares iBoxx $ Investment Grade Corporate Bond ETF			66
Statements of Assets and Liabilities			90
Selected Audited Financial Statements as of February 28, 2014			91

Management’s Discussion of Fund Performance

iSHARES^® U.S. ETF TRUST

U.S. CORPORATE BOND MARKET OVERVIEW

The U.S. bond market delivered a modest return with relatively low volatility for the period from May 27, 2014 to October 31, 2014 (the “reporting period”), as the bond market continued to defy many investors’ expectations for higher rates and lower bond prices.

U.S. economic growth increased at a moderate pace during the reporting period, as the total value of goods and services produced in the United States exceeded $17 trillion. At the beginning of the reporting period, the economy bounced back from a sharp contraction related to unusually cold winter weather, logging a relatively rapid 4.6% annualized growth rate during the second calendar quarter of 2014. Economic growth during the entire reporting period averaged approximately 4.0%.

Inflation remained subdued during the reporting period, as the Consumer Price Index increased at a 1.7% annualized pace for the year ending September 2014. The unemployment rate declined steadily, finishing the reporting period at 5.8% in October 2014. Consumer spending also increased, buoyed by the improving job market. Robust corporate profits led to rising business spending, providing additional fuel for the economic recovery.

The U.S. Federal Reserve Bank (the “Fed”) made several influential policy shifts during the reporting period. The Fed continued to trim bond purchases by $10 billion each month, while noting improvement in labor markets and modestly rising inflation. As a result, investors began to speculate about the possibility of future rate hikes by the Fed. At its meeting in October 2014, the Fed officially ended its bond purchasing program, but maintained its commitment to a near zero interest rate policy “for a considerable time.”

In that environment, bond returns varied widely. U.S. Treasuries led the broader bond market, as investors preferred the relative safety of U.S. government debt. Treasuries rallied during the summer of 2014, as low inflation, moderate growth and global uncertainty increased the appeal of U.S. Treasuries. In particular, long-term Treasuries were one of the best performing sectors of the bond market. At the other end of the maturity spectrum, short-term Treasuries delivered muted returns, as the combination of low yield and slightly higher interest rates meant low total returns.

Within corporate bonds, higher-quality bonds generally outperformed riskier high-yield bonds for the reporting period, reflecting investors’ preference for corporations with stronger balance sheets and lower credit risk. High-yield bond issuances, a measure of investor demand, decreased from relatively high levels during the reporting period. Nevertheless, default rates remained at historically low levels, as the vast majority of high-yield issuers remained strong enough to meet their debt obligations. Despite weak returns in the high-yield sector, the broad bond market posted a positive and relatively stable return during the reporting period, as the combination of moderate economic growth, low inflation and accommodative monetary policy proved to be a positive environment for bond performance.


MANAGEMENT’S DISCUSSIONSOF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® INTEREST RATE HEDGED HIGH YIELD BOND ETF

Performance as of October 31, 2014


		Cumulative Total Returns
		Since Inception
Fund NAV		(1.03)%
Fund Market		(1.03)%
Markit iBoxx USD Liquid High Yield Interest Rate Hedged Index		(0.48)%

The inception date of the Fund was 5/27/14. The first day of secondary market trading was 5/28/14.

The Markit iBoxx USD Liquid High Yield Interest Rate Hedged Index is an unmanaged index that reflects the duration hedged performance of U.S. dollar-denominated high yield corporate debt.

For the fiscal period ended 10/31/14, the Fund did not have six months of performance and therefore line graphs are not presented.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/27/14)^a		Ending Account Value (10/31/14)		Expenses Paid During Period^b,c		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^b,c		Annualized Expense Ratio^b
$	1,000.00	$	989.70	$	0.26	$	1,000.00	$	1,024.90	$	0.31		0.06%

^a	The beginning of the period (commencement of operations) is May 27, 2014.

^b	Annualized expenses ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (157 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.


6		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® INTEREST RATE HEDGED HIGH YIELD BOND ETF

The iShares Interest Rate Hedged High Yield Bond ETF (the “Fund”) seeks to mitigate the interest rate risk of a portfolio composed of U.S. dollar-denominated, high yield corporate bonds. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. For the reporting period from May 27, 2014 (inception date of the Fund) through October 31, 2014, the total return for the Fund was -1.03%, net of fees.

The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares iBoxx $ High Yield Corporate Bond ETF, which invests in U.S. dollar-denominated high yield corporate bonds. The Fund attempts to mitigate the interest rate risk of the underlying fund by holding short positions in U.S. Treasury futures.

As global economic growth slowed and geopolitical issues escalated, investors sold out of high-yield corporate bonds and sought the relative safety of more secure bonds, particularly U.S. Treasury bonds. As a result, corporate bond prices declined and credit spreads widened, especially in the second half of the reporting period. Credit spreads represent the additional yield an investor would demand on a bond with credit risk compared to a similar duration U.S. Treasury bond. The effect of the widening credit spreads detracted from Fund performance during the reporting period.

The Fund’s short positions in U.S. Treasury futures helped to mitigate interest rate risk during the reporting period, but also detracted from Fund performance as interest rates declined over the period.

PORTFOLIO ALLOCATION¹

As of 10/31/14


Maturity		Percentage of Total Investments²


0-1 Year	0.05	%
1-5 Years	28.66
5-10 Years	68.50
15-20 Years	1.67
More than 20 Years	1.12

TOTAL	100.00	%

BOND CREDIT QUALITY¹

As of 10/31/14


Moody’s Credit Rating³		Percentage of Total Investments²


Baa	0.85	%
Ba	44.59
B	42.60
Caa	11.12
Ca	0.11
Not Rated	0.73

TOTAL	100.00	%

¹	Reflects the portfolio allocation and bond credit quality of the iShares iBoxx $ High Yield Corporate Bond ETF, the underlying fund in which the Fund invests.

²	Excludes money market funds.


MANAGEMENT’S DISCUSSIONSOF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® INTEREST RATE HEDGED CORPORATE BOND ETF

Performance as of October 31, 2014


		Cumulative Total Returns
		Since Inception
Fund NAV		(1.05)%
Fund Market		(1.22)%
Markit iBoxx USD Liquid Investment Grade Interest Rate Hedged Index		(0.77)%

The inception date of the Fund was 5/27/14. The first day of secondary market trading was 5/28/14.

The Markit iBoxx USD Liquid Investment Grade Interest Rate Hedged Index is an unmanaged index that is designed to reflect the duration hedged performance of U.S. dollar-denominated investment grade corporate debt.

For the fiscal period ended 10/31/14, the Fund did not have six months of performance and therefore line graphs are not presented.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/27/14)^a		Ending Account Value (10/31/14)		Expenses Paid During Period^b,c		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^b,c		Annualized Expense Ratio^b
$	1,000.00	$	989.50	$	0.47	$	1,000.00	$	1,024.70	$	0.56		0.11%

^a	The beginning of the period (commencement of operations) is May 27, 2014.

^b	Annualized expenses ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (157 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.


8		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® INTEREST RATE HEDGED CORPORATE BOND ETF

The iShares Interest Rate Hedged Corporate Bond ETF (the “Fund”) seeks to mitigate the interest rate risk of a portfolio composed of U.S. dollar-denominated, investment-grade corporate bonds. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. For the reporting period from May 27, 2014 (inception date of the Fund) through October 31, 2014, the total return for the Fund was -1.05%, net of fees.

The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares iBoxx $ Investment Grade Corporate Bond ETF, which invests in U.S. dollar-denominated investment-grade corporate bonds. The Fund attempts to mitigate the interest rate risk of the underlying fund by holding short positions in U.S. Treasury futures.

As global economic growth slowed and geopolitical issues escalated, investors sold out of investment-grade corporate bonds and sought the relative safety of more secure bonds, particularly U.S. Treasury bonds. As a result, corporate bond prices declined and credit spreads widened, especially in the second half of the reporting period. Credit spreads represent the additional yield an investor would demand on a bond with credit risk compared to a similar duration U.S. Treasury bond. The effect of the widening credit spreads detracted from Fund performance during the reporting period.

PORTFOLIO ALLOCATION¹

As of 10/31/14


Maturity		Percentage of Total Investments²


1-5 Years	28.29	%
5-10 Years	39.03
10-15 Years	1.26
15-20 Years	4.22
More than 20 Years	27.20

TOTAL	100.00	%

BOND CREDIT QUALITY¹

As of 10/31/14


Moody’s Credit Rating³		Percentage of Total Investments²


Aaa	0.87	%
Aa	13.08
A	41.24
Baa	44.13
Ba	0.26
Not Rated	0.42

TOTAL	100.00	%

¹	Reflects the portfolio allocation and bond credit quality of the iShares iBoxx $ Investment Grade Corporate Bond ETF, the underlying fund in which the Fund invests.

²	Excludes money market funds.


MANAGEMENT’S DISCUSSIONSOF FUND PERFORMANCE			9

About Fund Performance

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2014 (or commencement of operations, as applicable) and held through October 31, 2014, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.


10		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments

iSHARES^® INTEREST RATE HEDGED HIGH YIELD BOND ETF

October 31, 2014


Security	Shares		Value

INVESTMENT COMPANIES — 98.11%

EXCHANGE-TRADED FUNDS — 98.11%
iShares iBoxx $ High Yield Corporate Bond ETF^a		462,500	$	42,795,125

				42,795,125

TOTAL INVESTMENT COMPANIES
(Cost: $43,459,980)				42,795,125

SHORT-TERM INVESTMENTS — 1.23%

MONEY MARKET FUNDS — 1.23%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^a,b		536,842		536,842

				536,842

TOTAL SHORT-TERM INVESTMENTS
(Cost: $536,842)				536,842

TOTAL INVESTMENTS IN SECURITIES — 99.34%
(Cost: $43,996,822)				43,331,967
Other Assets, Less Liabilities — 0.66%				286,612

NET ASSETS — 100.00%			$	43,618,579

^a	Affiliated issuer. See Note 2.

^b	The rate quoted is the annualized seven-day yield of the fund at period end.

Open futures contracts as of October 31, 2014 were as follows:


Issue	Number of Contracts Purchased (Sold)		Expiration		Exchange		Notional Value		Unrealized Appreciation (Depreciation)
2-Year U.S. Treasury Note		(68)		Dec. 2014		Chicago Board of Trade	$	(14,930,250)	$	(51,301)
5-Year U.S. Treasury Note		(130)		Dec. 2014		Chicago Board of Trade		(15,525,859)		(134,024)
10-Year U.S. Treasury Note		(78)		Dec. 2014		Chicago Board of Trade		(9,856,031)		(98,793)
Long U.S. Treasury Bond		(3)		Dec. 2014		Chicago Board of Trade		(423,281)		(5,410)

Net Unrealized Depreciation									$	(289,528)

See notes to financial statements.


SCHEDULESOF INVESTMENTS			11

Schedule of Investments

iSHARES^® INTEREST RATE HEDGED CORPORATE BOND ETF

October 31, 2014


Security	Shares		Value

INVESTMENT COMPANIES — 96.49%

EXCHANGE-TRADED FUNDS — 96.49%
iShares iBoxx $ Investment Grade Corporate Bond ETF^a		79,200	$	9,451,728

				9,451,728

TOTAL INVESTMENT COMPANIES
(Cost: $9,450,830)				9,451,728

SHORT-TERM INVESTMENTS — 2.16%

MONEY MARKET FUNDS — 2.16%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^a,b		211,291		211,291

				211,291

TOTAL SHORT-TERM INVESTMENTS
(Cost: $211,291)				211,291

TOTAL INVESTMENTS IN SECURITIES — 98.65%
(Cost: $9,662,121)				9,663,019
Other Assets, Less Liabilities — 1.35%				131,921

NET ASSETS — 100.00%			$	9,794,940

^a	Affiliated issuer. See Note 2.

^b	The rate quoted is the annualized seven-day yield of the fund at period end.

Open futures contracts as of October 31, 2014 were as follows:


Issue	Number of Contracts Purchased (Sold)		Expiration		Exchange		Notional Value		Unrealized Appreciation (Depreciation)
2-Year U.S. Treasury Note		(4)		Dec. 2014		Chicago Board of Trade	$	(878,250)	$	(2,756)
5-Year U.S. Treasury Note		(20)		Dec. 2014		Chicago Board of Trade		(2,388,594)		(18,628)
10-Year U.S. Treasury Note		(23)		Dec. 2014		Chicago Board of Trade		(2,906,266)		(24,648)
Long U.S. Treasury Bond		(13)		Dec. 2014		Chicago Board of Trade		(1,834,219)		(19,862)
Ultra Long U.S. Bond		(9)		Dec. 2014		Chicago Board of Trade		(1,411,313)		(28,419)

Net Unrealized Depreciation									$	(94,313)

See notes to financial statements.


12		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® U.S. ETF TRUST

October 31, 2014


	iShares Interest Rate Hedged High Yield Bond ETF			iShares Interest Rate Hedged Corporate Bond ETF

ASSETS
Investments, at cost:
Affiliated (Note 2)	$	43,996,822		$	9,662,121

Total cost of investments	$	43,996,822		$	9,662,121

Investments in securities, at fair value (Note 1):
Affiliated (Note 2)	$	43,331,967		$	9,663,019

Total fair value of investments		43,331,967			9,663,019
Cash pledged to broker		241,000			112,000
Receivables:
Futures variation margin		47,703			20,797

Total Assets		43,620,670			9,795,816


LIABILITIES
Payables:
Investment advisory fees (Note 2)		2,091			876

Total Liabilities		2,091			876


NET ASSETS	$	43,618,579		$	9,794,940


Net assets consist of:
Paid-in capital	$	44,698,218		$	10,031,329
Accumulated net realized loss		(125,256	)		(142,974	)
Net unrealized depreciation		(954,383	)		(93,415	)

NET ASSETS	$	43,618,579		$	9,794,940


Shares outstanding^a		450,000			100,000


Net asset value per share	$	96.93		$	97.95

^a	No par value, unlimited number of shares authorized.

See notes to financial statements.


FINANCIAL STATEMENTS			13

Statements of Operations

iSHARES^® U.S. ETF TRUST

Period ended October 31, 2014


	iShares Interest Rate Hedged High Yield Bond ETF^a			iShares Interest Rate Hedged Corporate Bond ETF^a

NET INVESTMENT INCOME
Dividends — affiliated (Note 2)	$	518,102		$	136,766

Total investment income		518,102			136,766


EXPENSES
Investment advisory fees (Note 2)		75,460			12,818

Total expenses		75,460			12,818
Less investment advisory fees waived (Note 2)		(68,782	)		(8,292	)

Net expenses		6,678			4,526

Net investment income		511,424			132,240


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated (Note 2)		(50,325	)		6,162
Futures contracts		(74,931	)		(149,136	)

Net realized loss		(125,256	)		(142,974	)

Net change in unrealized appreciation/depreciation on:
Investments		(664,855	)		898
Futures contracts		(289,528	)		(94,313	)

Net change in unrealized appreciation/depreciation		(954,383	)		(93,415	)

Net realized and unrealized loss		(1,079,639	)		(236,389	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(568,215	)	$	(104,149	)

^a	For the period from May 27, 2014 (commencement of operations) to October 31, 2014.

See notes to financial statements.


14		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® U.S. ETF TRUST


	iShares Interest Rate Hedged High Yield Bond ETF			iShares Interest Rate Hedged Corporate Bond ETF
	Period from May 27, 2014^a to October 31, 2014			Period from May 27, 2014^a to October 31, 2014

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	511,424		$	132,240
Net realized loss		(125,256	)		(142,974	)
Net change in unrealized appreciation/depreciation		(954,383	)		(93,415	)

Net decrease in net assets resulting from operations		(568,215	)		(104,149	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(511,424	)		(132,240	)
Return of capital		(2,091	)		(884	)

Total distributions to shareholders		(513,515	)		(133,124	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		44,700,309			10,032,213

Net increase in net assets from capital share transactions		44,700,309			10,032,213

INCREASE IN NET ASSETS		43,618,579			9,794,940

NET ASSETS
Beginning of period		—			—

End of period	$	43,618,579		$	9,794,940


SHARES ISSUED
Shares sold		450,000			100,000

Net increase in shares outstanding		450,000			100,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS			15

Financial Highlights

iSHARES^® U.S. ETF TRUST

(For a share outstanding throughout the period)

iShares Interest Rate Hedged High Yield Bond ETF


	Period from May 27, 2014^a to Oct. 31, 2014
Net asset value, beginning of period	$	100.10

Income from investment operations:
Net investment income^b		1.86
Net realized and unrealized loss^c		(2.87	)

Total from investment operations		(1.01	)

Less distributions from:
Net investment income		(2.15	)
Return of capital		(0.01	)

Total distributions		(2.16	)

Net asset value, end of period	$	96.93


Total return		(1.03	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	43,619
Ratio of expenses to average net assets^e,f		0.06	%
Ratio of expenses to average net assets prior to waived fees^e,f		0.65	%
Ratio of net investment income to average net assets^e		4.41	%
Portfolio turnover rate^g,h		3	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount 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 investments in its underlying fund.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^g	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^h	Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested.

See notes to financial statements.


16		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® U.S. ETF TRUST

(For a share outstanding throughout the period)

iShares Interest Rate Hedged Corporate Bond ETF


	Period from May 27, 2014^a to Oct. 31, 2014
Net asset value, beginning of period	$	100.32

Income from investment operations:
Net investment income^b		1.32
Net realized and unrealized loss^c		(2.36	)

Total from investment operations		(1.04	)

Less distributions from:
Net investment income		(1.32	)
Return of capital		(0.01	)

Total distributions		(1.33	)

Net asset value, end of period	$	97.95


Total return		(1.05	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	9,795
Ratio of expenses to average net assets^e,f		0.11	%
Ratio of expenses to average net assets prior to waived fees^e,f		0.30	%
Ratio of net investment income to average net assets^e		3.09	%
Portfolio turnover rate^g,h		4	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount 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 investments in its underlying fund.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^g	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

^h	Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			17

Notes to Financial Statements

iSHARES^® U.S. ETF TRUST

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares ETF		Diversification Classification
Interest Rate Hedged High Yield Bond^a		Diversified
Interest Rate Hedged Corporate Bond^a		Diversified

The Fund commenced operations on May 27, 2014.

Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an exchange-traded fund of iShares Trust (an “underlying fund”), an affiliate of the Funds. The financial statements and schedules of investments for the underlying funds can be found elsewhere in this report and should be read in conjunction with the Funds’ financial statements.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the 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 are valued at the last traded price.


18		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

As of October 31, 2014, the value of each of the Funds’ investments was classified as Level 1. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.


NOTESTO FINANCIAL STATEMENTS			19

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions from the underlying funds, if any, are recognized on the ex-dividend date. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

RECENT ACCOUNTING STANDARD

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

For its investment advisory services to the iShares Interest Rate Hedged High Yield Bond ETF and the iShares Interest Rate Hedged Corporate Bond ETF, BFA is entitled to an annual investment advisory fee of 0.65% and 0.30%, respectively, based on the average daily net assets of each Fund. In addition, each Fund indirectly pays its pro rata share of fees and expenses attributable to its investments in other registered investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses is each Fund’s total annual fund operating expense.

For each Fund, BFA has contractually agreed to waive a portion of the investment advisory fee through February 29, 2016 in an amount equal to the acquired fund fees and expenses.

For the iShares Interest Rate Hedged High Yield Bond ETF, BFA has contractually agreed to reduce its investment advisory fee for the Fund through February 29, 2016 on assets attributable to the Fund’s investments in the iShares iBoxx $ High Yield Corporate Bond ETF (“HYG”) (and those assets used to hedge the securities in HYG) such that the total annual fund operating expenses on such assets are equal to the investment advisory fee of HYG plus 0.15%. BFA has also contractually agreed to waive the Fund’s investment advisory fee through February 29, 2016 by an additional amount such that the Fund’s total annual fund operating expenses do not exceed 0.55% of average daily net assets.

For the iShares Interest Rate Hedged Corporate Bond ETF, BFA has contractually agreed to reduce its investment advisory fee through February 29, 2016 on assets attributable to the Fund’s investments in the iShares iBoxx $ Investment Grade Corporate Bond ETF (“LQD”) (and those assets used to hedge the securities in LQD) such that the total annual fund operating expenses on such assets are equal to the investment advisory fee of LQD plus 0.15%. BFA has also contractually agreed to waive the Fund’s


20		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

investment advisory fee through February 29, 2016 by an additional amount such that the Fund’s total annual fund operating expenses do not exceed 0.25% of average daily net assets.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the period ended October 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
Interest Rate Hedged High Yield Bond
iShares iBoxx $ High Yield Corporate Bond ETF		—		476,575		(14,075	)		462,500	$	42,795,125	$	518,102	$	(50,325	)


Interest Rate Hedged Corporate Bond
iShares iBoxx $ Investment Grade Corporate Bond ETF		—		86,150		(6,950	)		79,200	$	9,451,728	$	136,766	$	6,162

Certain trustees and officers of the Trust are also officers of BlackRock Institutional Trust Company, N.A. and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended October 31, 2014 were as follows:


iShares ETF	Purchases		Sales
Interest Rate Hedged High Yield Bond	$	612,888	$	1,284,509
Interest Rate Hedged Corporate Bond		404,099		835,644

In-kind transactions (see Note 4) for the period ended October 31, 2014 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Interest Rate Hedged High Yield Bond	$	44,181,926	$	—
Interest Rate Hedged Corporate Bond		9,876,213		—


NOTESTO FINANCIAL STATEMENTS			21

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FUTURES CONTRACTS*

Each Fund may purchase or sell futures contracts as part of its investment strategy. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the Funds as of October 31, 2014 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Liabilities
	iShares Interest Rate Hedged High Yield Bond ETF		iShares Interest Rate Hedged Corporate Bond ETF
Interest rate contracts:
Variation margin / Net assets consist of — net unrealized depreciation^a	$	289,528	$	94,313

Represents cumulative depreciation of futures contracts as reported in the schedules of investments. Only current day’s variation margin is reported separately within the statements of assets and liabilities.


22		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Funds during the period ended October 31, 2014 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)
	iShares Interest Rate Hedged High Yield Bond ETF			iShares Interest Rate Hedged Corporate Bond ETF
Interest rate contracts:
Futures contracts	$	(74,931	)	$	(149,136	)



	Net Change in Unrealized Appreciation/Depreciation
	iShares Interest Rate Hedged High Yield Bond ETF			iShares Interest Rate Hedged Corporate Bond ETF
Interest rate contracts:
Futures contracts	$	(289,528	)	$	(94,313	)

The following table shows the average quarter-end balances of open futures contracts for the period ended October 31, 2014:


	iShares Interest Rate Hedged High Yield Bond ETF			iShares Interest Rate Hedged Corporate Bond ETF
Average number of contracts sold		(215	)		(70	)
Average value of contracts sold	$	(31,778,680	)	$	(9,533,481	)

6.	*MARKET AND CREDIT RISK*

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss each Fund may suffer through holding market positions in the face of market movements. Each Fund is exposed to market risk by virtue of its direct or indirect investment in fixed income and financial derivative instruments. The fair value of securities held by the Funds may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s schedule of investments.


NOTESTO FINANCIAL STATEMENTS			23

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

Each Fund invests a substantial amount of its assets indirectly in securities of non-U.S. issuers that trade in non-U.S. markets. This involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets.

Each Fund invests a substantial amount of its assets indirectly in fixed-income securities. Changes in market interest rates or economic conditions, including the decision in December 2013 by the Federal Reserve Bank to taper its quantitative easing policy, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making them more volatile than securities with shorter durations. Given the environment of historically low interest rates, each Fund may be subject to a greater risk of price losses if interest rates rise.

CREDIT RISK

The iShares Interest Rate Hedged High Yield Bond ETF invests a substantial portion of its assets indirectly in high yield securities that are rated below investment-grade (including those bonds rated lower than “BBB-“by Standard & Poor’s Ratings Services and Fitch or “Baa3” by Moody’s), or are unrated which may be more volatile than higher-rated securities of similar maturity. High yield securities may also be subject to greater levels of credit or default risk than higher-rated securities and high yield securities may be less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities. In particular, high yield securities are often issued by smaller, less creditworthy companies or by highly leveraged (indebted) companies, which are generally less able than more financially stable companies to make scheduled payments of interest and principal.

7.	*INCOME TAX INFORMATION*


24		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

The tax character of distributions paid during the period ended October 31, 2014 was as follows:


iShares ETF	2014
Interest Rate Hedged High Yield Bond
Ordinary income	$	511,424
Return of capital		2,091

	$	513,515

Interest Rate Hedged Corporate Bond
Ordinary income	$	132,240
Return of capital		884

	$	133,124

As of October 31, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Total
Interest Rate Hedged High Yield Bond	$	—	$	(374,689	)	$	(704,950	)	$	(1,079,639	)
Interest Rate Hedged Corporate Bond		—		(235,938	)		(451	)		(236,389	)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains (losses) on certain futures contracts.

As of October 31, 2014, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
Interest Rate Hedged High Yield Bond	$	374,689
Interest Rate Hedged Corporate Bond		235,938

As of October 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Interest Rate Hedged High Yield Bond	$	44,036,916	$	—	$	(704,949	)	$	(704,949	)
Interest Rate Hedged Corporate Bond		9,663,470		898		(1,349	)		(451	)

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2014 and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.


NOTESTO FINANCIAL STATEMENTS			25

Notes to Financial Statements (Continued)

iSHARES^® U.S. ETF TRUST

8.	*SUBSEQUENT EVENTS*


26		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares U.S. ETF Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Interest Rate Hedged High Yield Bond ETF and iShares Interest Rate Hedged Corporate Bond ETF (the “Funds”) at October 31, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for the period May 27, 2014 (commencement of operations) through October 31, 2014, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

December 19, 2014


REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			27

Tax Information (Unaudited)

iSHARES^® U.S. ETF TRUST

The Funds hereby designate the following amounts of distributions from direct Federal Obligation Interest for the period ended October 31, 2014:


iShares ETF	Federal Obligation Interest ^a
Interest Rate Hedged High Yield Bond	$	2,825
Interest Rate Hedged Corporate Bond		512

The law varies in each state as to whether and what percentage of ordinary income dividends attributable to Federal obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income tax.


28		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® U.S. ETF TRUST

At a meeting held on December 4-5, 2013, the Board, including all of the Independent Trustees, approved the selection of BFA as investment adviser and approved the proposed Advisory Contract for the Funds, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Trustees were advised by their independent counsel throughout the process.

In selecting BFA and approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Funds — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including any proposed advisory fees, waivers/reimbursements, and gross and net total expenses of the Funds in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Funds’ applicable peer group pursuant to Lipper’s proprietary methodology, and any registered funds that would otherwise have been excluded from Lipper’s comparison group because of the size, sponsor, inception date, or other differentiating factors included in Lipper’s proprietary selection methodology, but that were nonetheless included at the request of BFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or other funds that pursue investment strategies similar to those of the Funds, the Lipper Group included, in part, mutual funds, closed-end funds, exchange traded funds, or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds that are not exchange traded funds and funds sponsored by an “at cost” service provider), as applicable. In support of its review of the statistical information, the Board was provided with a general description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board also received a detailed explanation from BFA regarding its rationale for including funds that had been excluded from Lipper’s consideration due to Lipper’s methodology parameters, as well as information showing the effect of including these additional funds in the analysis. The Board further noted that due to the limitations in identifying comparable funds in the Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Funds.

The Board also noted that the proposed investment advisory fee rates and overall expenses for the Funds compared favorably to the investment advisory fee rates and overall expenses of the funds in the Lipper Group.

Based on this review, the other factors considered at the meeting, and their general knowledge of fund pricing, the Board concluded that the proposed investment advisory fees and expense levels of the Funds supported the Board’s approval of the Advisory Contract.


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			29

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® U.S. ETF TRUST

education, product management, customized portfolio consulting support, and capital markets support. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Funds would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that 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 appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered BFA’s investment and risk management processes and strategies, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Funds and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Funds to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Funds since the proposed relationships had not yet commenced. The Board noted that it expects to receive profitability information from BFA on at least an annual basis following each Fund’s launch and will thus be in a position to evaluate whether, following the expiration of the Advisory Contract’s initial two-year term, any adjustments in the Funds’ fees would be appropriate.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future. The Board further considered that with respect to each of the Funds, BFA had contractually agreed to waive a portion of its management fees in an amount equal to the aggregate acquired fund fees and expenses, if any, attributable to the Fund’s investments in other registered investment companies advised by BFA or its affiliates.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually following an initial two-year period, concluded that the investment advisory fee rates incorporate potential economies of scale and supported the Board’s approval of the Advisory Contract.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board considered certain information received at previous meetings 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 and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts that have substantially the same investment objectives and strategies as the Funds. The Board further noted that BFA previously provided the Board with detailed information regarding how Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different, generally more extensive, services provided to the iShares funds, as well as other significant differences in the approach of BFA and its affiliates to the iShares funds, on one hand, and Other Accounts, on the other. 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


30		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® U.S. ETF TRUST

inherent risks of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses to be borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for investment companies, including the Funds, were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed. The Board considered the proposed investment advisory fee rate for iShares Interest Rate Hedged Corporate Bond ETF in relation to that of iShares iBoxx $ Investment Grade Corporate Bond ETF, and the proposed investment advisory fee rate for iShares Interest Rate Hedged High Yield Bond ETF in relation to that of iShares iBoxx $ High Yield Corporate Bond ETF. The Board noted that each Fund’s proposed advisory fee rate is higher than that of the respective other iShares fund, which invests in similar underlying securities, but unlike the Funds, the other iShares funds are index funds that are not interest rate hedged.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Funds by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA generally would not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board considered the potential payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also considered the potential for revenue to BTC, the Funds’ securities lending agent, and its affiliates, in the event of any lending of the Funds’ securities. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, will be reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that the existence of any such ancillary benefits would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Contract.

Based on the considerations described above, the Board determined that the investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining and concluded that it is in the best interest of the Funds and their shareholders to approve the Advisory Contract.


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			31

Supplemental Information (Unaudited)

iSHARES^® U.S. ETF TRUST

Section 19(a) Notices


	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
Interest Rate Hedged Corporate Bond	$	1.324411	$	—	$	0.006830	$	1.331241		99	%		—	%		1	%		100	%

Premium/Discount Information


32		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® U.S. ETF TRUST

iShares Interest Rate Hedged High Yield Bond ETF

Period Covered: July 1, 2014 through September 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0%		1		1.56	%
Greater than 0.5% and Less than 1.0%		4		6.25
Between 0.5% and –0.5%		59		92.19

		64		100.00	%

iShares Interest Rate Hedged Corporate Bond ETF

Period Covered: July 1, 2014 through September 30, 2014


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5%		4		6.25	%
Between 0.5% and –0.5%		58		90.62
Less than –0.5%		2		3.13

		64		100.00	%


SUPPLEMENTAL INFORMATION			33

Trustee and Officer Information

iSHARES^® U.S. ETF TRUST

Interested Trustees

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.

Mark Wiedman 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.


34		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Independent Trustees



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert H. Silver (59)	Trustee (since 2011); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares, Inc. (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Independent Chairman of iShares, Inc., iShares MSCI Russia Capped ETF, Inc. and iShares Trust (since 2012).
Cecilia H. Herbert (65)	Trustee (since 2011); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of Forward Funds (34 portfolios) (since 2009).
Charles A. Hurty (71)	Trustee (since 2011); Audit Committee Chair (since 2011).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Trustee (since 2011); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010).


TRUSTEEAND OFFICER INFORMATION			35

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Independent Trustees (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
John E. Martinez (53)	Trustee (since 2011); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares, Inc. (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010).
George G.C. Parker (75)	Trustee (since 2011).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares, Inc. (since 2002); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Trustee (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares, Inc. (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011), Director, Cavium, Inc. (since 2013).


36		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (55)	Treasurer and Chief Financial Officer (since 2011).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (46)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2011).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (52)	Executive Vice President (since 2011).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2011).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


TRUSTEEAND OFFICER INFORMATION			37

Schedule of Investments (Unaudited)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

CORPORATE BONDS & NOTES — 97.61%

ADVERTISING — 0.45%
Affinion Group Inc.
7.88%, 12/15/18 (Call 12/15/14)^a	$	7,200	$	5,652,000
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp.
5.25%, 02/15/22 (Call 02/15/17)^a,b		6,275		6,431,875
5.63%, 02/15/24 (Call 02/15/19)^b		3,375		3,493,125
5.88%, 03/15/25 (Call 09/15/19)^a,b		10,100		10,554,500
inVentiv Health Inc.
9.00%, 01/15/18 (Call 01/15/16)^b		10,500		10,867,500
10.00%, 08/15/18 (Call 08/15/15)^b,c		1,285		1,156,500
11.00%, 08/15/18 (Call 01/20/15)^a,b		2,167		1,538,570
Lamar Media Corp.
5.00%, 05/01/23 (Call 05/01/18)^a		8,909		8,909,000
5.38%, 01/15/24 (Call 01/15/19)^a		6,425		6,633,813
5.88%, 02/01/22 (Call 02/01/17)		8,350		8,788,375

				64,025,258
AEROSPACE & DEFENSE — 0.69%
B/E Aerospace Inc.
5.25%, 04/01/22 (Call 04/01/17)		18,250		20,371,563
6.88%, 10/01/20 (Call 10/01/15)		8,950		9,688,375
Meccanica Holdings USA Inc.
6.25%, 07/15/19^b		8,650		9,319,510
TransDigm Inc.
5.50%, 10/15/20 (Call 10/15/15)^a		9,650		9,650,000
6.00%, 07/15/22 (Call 07/15/17)		19,480		19,869,600


Security	Principal (000s)		Value

6.50%, 07/15/24 (Call 07/15/19)	$	20,320	$	20,828,000
7.50%, 07/15/21 (Call 07/15/16)		8,100		8,758,125

				98,485,173
AIRLINES — 0.31%
Air Canada
6.75%, 10/01/19 (Call 10/01/16)^a,b		6,075		6,393,937
7.75%, 04/15/21^a,b		7,980		8,309,175
American Airlines Group Inc.
5.50%, 10/01/19^b		14,190		14,119,050
Continental Airlines Inc. 2012-3 Pass Through Trust
6.13%, 04/29/18		6,600		6,979,500
U.S. Airways Group Inc.
6.13%, 06/01/18		7,668		7,898,521

				43,700,183
APPAREL — 0.24%
Hanesbrands Inc.
6.38%, 12/15/20 (Call 12/15/15)		16,280		17,297,500
Levi Strauss & Co.
6.88%, 05/01/22 (Call 05/01/17)^a		8,050		8,754,375
7.63%, 05/15/20 (Call 05/15/15)		8,000		8,520,000

				34,571,875
AUTO MANUFACTURERS — 1.51%
Chrysler Group LLC/CG Co- Issuer Inc.
8.00%, 06/15/19 (Call 06/15/15)		47,000		50,290,000
8.25%, 06/15/21 (Call 06/15/16)^a		52,635		58,753,819
General Motors Co.
3.50%, 10/02/18		25,050		25,897,191
4.88%, 10/02/23^a		24,800		26,691,000
Jaguar Land Rover Automotive PLC
4.13%, 12/15/18^a,b		10,850		10,985,625
4.25%, 11/15/19^b		4,275		4,296,375


38		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

5.63%, 02/01/23 (Call 02/01/18)^a,b	$	7,800	$	8,221,200
8.13%, 05/15/21 (Call 05/15/16)^b		7,375		8,112,500
Navistar International Corp.
8.25%, 11/01/21 (Call 11/01/14)^a		20,954		21,530,235

				214,777,945
AUTO PARTS & EQUIPMENT — 0.84%
American Axle & Manufacturing Inc.
6.25%, 03/15/21 (Call 03/15/16)^a		6,450		6,772,500
6.63%, 10/15/22 (Call 10/15/17)^a		7,065		7,630,200
Dana Holding Corp.
5.38%, 09/15/21 (Call 09/15/16)^a		6,750		7,015,479
6.50%, 02/15/19 (Call 02/15/15)^a		6,300		6,538,859
Goodyear Tire & Rubber Co. (The)
6.50%, 03/01/21 (Call 03/01/16)^a		15,450		16,686,000
7.00%, 05/15/22 (Call 05/15/17)^a		12,395		13,479,563
8.25%, 08/15/20 (Call 08/15/15)^a		14,845		15,958,375
Lear Corp.
4.75%, 01/15/23 (Call 01/15/18)^a		6,758		6,774,895
Schaeffler Finance BV
4.25%, 05/15/21 (Call 05/15/17)^a,b		12,900		12,609,750
4.75%, 05/15/21 (Call 05/15/16)^b		14,150		14,114,625
7.75%, 02/15/17^a,b		10,170		11,441,250

				119,021,496
BANKS — 2.90%
BBVA International Preferred SAU
5.92%, 04/29/49 (Call 04/18/17)^a,d		8,761		8,936,220


Security	Principal (000s)		Value

BPCE SA
12.50%, 08/29/49 (Call 09/30/19)^a,b,d	$	7,400	$	10,096,560
CIT Group Inc.
3.88%, 02/19/19		16,500		16,582,500
4.25%, 08/15/17		30,100		30,965,375
5.00%, 05/15/17^a		19,846		20,788,685
5.00%, 08/15/22		20,200		21,260,500
5.00%, 08/01/23^a		12,350		12,936,625
5.25%, 03/15/18^a		23,726		25,030,930
5.38%, 05/15/20^a		11,450		12,251,500
5.50%, 02/15/19^b		32,530		34,644,450
6.63%, 04/01/18^a,b		3,900		4,268,489
Commerzbank AG
8.13%, 09/19/23^b		16,350		19,088,625
Credit Agricole SA
6.64%, 05/29/49 (Call 05/31/17)^a,b,d		16,745		17,843,891
8.38%, 10/29/49 (Call 10/13/19)^a,b,d		15,600		18,018,000
Fifth Third Bancorp
5.10%, 12/29/49 (Call 06/30/23)^d		9,800		9,261,000
Regions Bank/Birmingham AL
7.50%, 05/15/18		4,955		5,801,123
Royal Bank of Scotland Group PLC
5.13%, 05/28/24^a		37,215		37,608,095
6.00%, 12/19/23		32,971		35,354,691
6.10%, 06/10/23		16,350		17,692,546
6.13%, 12/15/22^a		37,450		40,636,946
Royal Bank of Scotland NV
4.65%, 06/04/18		2,500		2,634,375
Societe Generale SA
5.92%, 12/31/49 (Call 04/05/17)^b,d		10,715		11,250,750

				412,951,876
BEVERAGES — 0.44%
Constellation Brands Inc.
3.75%, 05/01/21		7,600		7,590,500
3.88%, 11/15/19		1,425		1,446,375
4.25%, 05/01/23		15,575		15,633,406
4.75%, 11/15/24		1,200		1,227,000


SCHEDULESOF INVESTMENTS			39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

6.00%, 05/01/22^a	$	10,900	$	12,180,750
7.25%, 09/01/16^a		11,050		12,072,125
7.25%, 05/15/17		11,499		12,835,759

				62,985,915
BUILDING MATERIALS — 0.80%
Building Materials Corp. of America
5.38%, 11/15/24 (Call 11/15/19)^b		4,910		4,922,275
6.75%, 05/01/21 (Call 05/01/16)^a,b		15,800		16,866,500
6.88%, 08/15/18 (Call 12/15/14)^b		8,270		8,559,450
Lafarge SA
6.20%, 07/09/15^b		775		800,003
6.50%, 07/15/16^a		11,600		12,419,583
Masco Corp.
4.80%, 06/15/15		1,000		1,015,000
5.95%, 03/15/22		6,477		7,092,315
6.13%, 10/03/16^a		12,653		13,570,342
7.13%, 03/15/20		9,845		11,297,137
USG Corp.
6.30%, 11/15/16		8,569		9,018,873
9.75%, 01/15/18		8,225		9,499,875
Vulcan Materials Co.
7.00%, 06/15/18		6,400		7,120,000
7.50%, 06/15/21		10,100		11,766,500

				113,947,853
CHEMICALS — 1.66%
Ashland Inc.
3.00%, 03/15/16 (Call 02/15/16)		8,750		8,837,217
3.88%, 04/15/18 (Call 03/15/18)		11,800		11,973,965
4.75%, 08/15/22 (Call 05/15/22)^a		18,000		18,164,342
Axiall Corp.
4.88%, 05/15/23 (Call 05/15/18)^a		6,130		5,954,965
Celanese U.S. Holdings LLC
4.63%, 11/15/22		8,100		8,201,250
5.88%, 06/15/21		3,950		4,285,750


Security	Principal (000s)		Value

Eagle Spinco Inc.
4.63%, 02/15/21 (Call 02/15/18)	$	10,775	$	10,505,625
Hexion U.S. Finance Corp.
6.63%, 04/15/20 (Call 04/15/15)^a		25,300		25,393,248
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC
8.88%, 02/01/18 (Call 11/15/15)^a		19,400		19,212,741
9.00%, 11/15/20 (Call 11/15/15)^a		8,650		7,871,066
Huntsman International LLC
4.88%, 11/15/20 (Call 08/15/20)^a		11,000		11,123,750
8.63%, 03/15/21 (Call 09/15/15)^a		9,110		9,884,350
Ineos Finance PLC
7.50%, 05/01/20 (Call 05/01/15)^a,b		17,960		19,194,750
8.38%, 02/15/19 (Call 02/15/15)^a,b		15,950		17,106,375
Ineos Group Holdings SA
5.88%, 02/15/19 (Call 02/15/16)^a,b		9,525		9,548,812
6.13%, 08/15/18 (Call 05/15/15)^a,b		11,325		11,424,094
NOVA Chemicals Corp.
5.00%, 05/01/25 (Call 01/31/25)^b		3,520		3,634,400
Rockwood Specialties Group Inc.
4.63%, 10/15/20 (Call 10/15/15)		19,250		20,097,000
WR Grace & Co-Conn
5.13%, 10/01/21^b		13,300		13,865,250

				236,278,950
COAL — 1.15%
Alpha Natural Resources Inc.
6.00%, 06/01/19 (Call 01/20/15)^a		10,815		5,407,500


40		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

6.25%, 06/01/21 (Call 06/01/16)^a	$	10,040	$	4,769,000
7.50%, 08/01/20 (Call 08/01/16)^a,b		11,975		9,580,000
9.75%, 04/15/18^a		7,171		4,661,150
Arch Coal Inc.
7.00%, 06/15/19 (Call 06/15/15)^a		13,950		5,614,875
7.25%, 10/01/20 (Call 10/01/15)^a		7,380		3,542,400
7.25%, 06/15/21 (Call 06/15/16)^a		15,500		5,735,000
CONSOL Energy Inc.
5.88%, 04/15/22 (Call 04/15/17)^b		30,350		30,805,250
8.25%, 04/01/20 (Call 04/01/15)^a		17,210		18,109,894
Peabody Energy Corp.
6.00%, 11/15/18		22,350		21,679,500
6.25%, 11/15/21^a		21,378		20,255,655
6.50%, 09/15/20^a		9,845		9,377,362
7.38%, 11/01/16		9,446		9,752,995
Walter Energy Inc.
8.50%, 04/15/21 (Call 04/15/17)^a		5,850		1,564,875
9.50%, 10/15/19 (Call 10/15/16)^a,b		11,925		10,315,125
9.88%, 12/15/20 (Call 12/15/16)^a		7,650		2,237,625

				163,408,206
COMMERCIAL SERVICES — 3.51%
ADT Corp. (The)
2.25%, 07/15/17		11,073		10,868,249
3.50%, 07/15/22^a		16,450		14,609,398
4.13%, 04/15/19^a		8,125		8,053,372
4.13%, 06/15/23^a		9,650		8,844,333
6.25%, 10/15/21^a		14,850		15,675,647
Altegrity Inc.
9.50%, 07/01/19 (Call 07/01/17)^a,b		10,580		10,077,450
Anna Merger Sub Inc.
7.75%, 10/01/22 (Call 10/01/17)^a,b		12,250		12,525,625


Security	Principal (000s)		Value

APX Group Inc.
6.38%, 12/01/19 (Call 12/01/15)^a	$	14,800	$	14,541,000
8.75%, 12/01/20 (Call 12/01/15)^a		12,771		11,110,770
Ashtead Capital Inc.
5.63%, 10/01/24 (Call 10/01/19)^b		9,535		9,940,237
6.50%, 07/15/22 (Call 07/15/17)^b		5,100		5,508,000
Avis Budget Car Rental LLC/Avis Budget Finance Inc.
5.13%, 06/01/22 (Call 06/01/17)^b		6,550		6,468,125
5.50%, 04/01/23 (Call 04/01/18)^a		8,050		8,090,250
Cenveo Corp.
6.00%, 08/01/19 (Call 02/01/19)^a,b		9,175		8,806,082
Ceridian HCM Holding Inc.
11.00%, 03/15/21 (Call 03/15/16)^b		7,475		8,428,063
Ceridian LLC
8.88%, 07/15/19 (Call 07/15/15)^a,b		13,600		15,062,000
Ceridian LLC/Comdata Inc.
8.13%, 11/15/17 (Call 11/14/14)^b		9,750		9,762,187
Global A&T Electronics Ltd.
10.00%, 02/01/19 (Call 02/01/16)^b		17,900		15,796,750
Harland Clarke Holdings Corp.
9.25%, 03/01/21 (Call 03/01/17)^b		12,580		12,725,169
Hertz Corp. (The)
5.88%, 10/15/20 (Call 10/15/15)^a		12,400		12,569,741
6.25%, 10/15/22 (Call 10/15/17)^a		9,000		9,165,872
6.75%, 04/15/19 (Call 04/15/15)		20,375		21,205,760
7.38%, 01/15/21 (Call 01/15/16)		8,125		8,587,581


SCHEDULESOF INVESTMENTS			41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

7.50%, 10/15/18 (Call 01/20/15)^a	$	10,200	$	10,585,120
Iron Mountain Inc.
5.75%, 08/15/24 (Call 08/15/17)		17,075		17,395,156
6.00%, 08/15/23 (Call 08/15/18)		9,350		9,875,937
7.75%, 10/01/19 (Call 10/01/15)		5,780		6,213,500
8.38%, 08/15/21 (Call 12/29/14)		6,750		7,036,875
Jaguar Holding Co II/Jaguar Merger Sub Inc.
9.50%, 12/01/19 (Call 12/01/14)^a,b		11,061		11,876,749
Laureate Education Inc.
9.75%, 09/01/19 (Call 09/01/15)^a,b		23,950		24,668,500
R.R. Donnelley & Sons Co.
6.00%, 04/01/24		5,525		5,552,625
7.00%, 02/15/22^a		6,850		7,329,500
7.63%, 06/15/20^a		950		1,059,250
7.88%, 03/15/21^a		7,325		8,222,313
Service Corp. International/U.S.
5.38%, 01/15/22 (Call 07/15/17)^a		6,550		6,784,490
5.38%, 05/15/24 (Call 05/15/19)^a		7,775		7,988,813
ServiceMaster Co. (The)
7.00%, 08/15/20 (Call 08/15/15)^a		7,556		8,047,140
8.00%, 02/15/20 (Call 02/15/15)		419		447,283
United Rentals North America Inc.
5.75%, 07/15/18 (Call 07/15/15)^a		13,500		14,141,250
5.75%, 11/15/24 (Call 05/15/19)^a		13,525		14,167,437
6.13%, 06/15/23 (Call 12/15/17)^a		15,875		17,065,625
7.38%, 05/15/20 (Call 05/15/16)		11,950		12,995,625


Security	Principal (000s)		Value

7.63%, 04/15/22 (Call 04/15/17)	$	21,250	$	23,640,625
8.25%, 02/01/21 (Call 02/01/16)		10,795		11,793,537
8.38%, 09/15/20 (Call 09/15/15)^a		13,680		14,825,700

				500,134,711
COMPUTERS — 0.76%
Dell Inc.
3.10%, 04/01/16^a		2,150		2,160,750
4.63%, 04/01/21^a		6,210		6,008,175
5.65%, 04/15/18		8,459		8,924,245
5.88%, 06/15/19^a		9,850		10,453,313
NCR Corp.
4.63%, 02/15/21 (Call 02/15/17)		7,750		7,711,250
5.00%, 07/15/22 (Call 07/15/17)		9,800		9,751,000
5.88%, 12/15/21 (Call 12/15/17)^a		6,375		6,566,250
6.38%, 12/15/23 (Call 12/15/18)^a		12,750		13,515,000
Sungard Availability Services Capital Inc.
8.75%, 04/01/22 (Call 04/01/19)^a,b		6,450		4,773,000
SunGard Data Systems Inc.
6.63%, 11/01/19 (Call 11/01/15)		15,550		16,016,500
7.38%, 11/15/18 (Call 01/20/15)^a		8,225		8,554,000
7.63%, 11/15/20 (Call 11/15/15)^a		13,210		14,085,162

				108,518,645
COSMETICS & PERSONAL CARE — 0.11%
Avon Products Inc.
4.60%, 03/15/20		7,800		7,416,708
5.00%, 03/15/23^a		9,168		8,572,080

				15,988,788
DISTRIBUTION & WHOLESALE — 0.62%
HD Supply Inc.
7.50%, 07/15/20 (Call 10/15/16)^a		20,740		22,243,650


42		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

8.13%, 04/15/19 (Call 04/15/15)	$	19,548	$	21,209,580
11.00%, 04/15/20 (Call 04/15/16)^a		13,930		15,915,025
11.50%, 07/15/20 (Call 10/15/16)		15,450		18,018,563
VWR Funding Inc.
7.25%, 09/15/17 (Call 01/20/15)^a		10,525		11,011,781

				88,398,599
DIVERSIFIED FINANCIAL SERVICES — 7.35%
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
2.75%, 05/15/17^a,b		6,500		6,435,000
3.75%, 05/15/19^b		18,950		18,831,562
4.50%, 05/15/21^b		17,150		17,321,500
5.00%, 10/01/21^a,b		13,800		14,283,000
Aircastle Ltd.
4.63%, 12/15/18^a		6,650		6,749,750
5.13%, 03/15/21		8,250		8,353,125
6.25%, 12/01/19		8,350		8,934,500
6.75%, 04/15/17		8,050		8,633,625
Ally Financial Inc.
2.75%, 01/30/17^a		15,050		15,068,812
3.13%, 01/15/16^a		5,500		5,582,500
3.50%, 07/18/16^a		15,500		15,713,125
3.50%, 01/27/19		13,350		13,416,750
4.75%, 09/10/18^a		12,450		13,088,063
5.13%, 09/30/24^a		10,800		11,259,000
5.50%, 02/15/17^a		27,652		29,311,120
6.25%, 12/01/17^a		19,010		20,748,130
7.50%, 09/15/20		26,500		31,542,245
8.00%, 12/31/18^a		8,425		9,804,594
8.00%, 03/15/20		27,010		32,547,050
Denali Borrower LLC/Denali Finance Corp.
5.63%, 10/15/20 (Call 10/15/16)^a,b		25,875		27,330,469
E*TRADE Financial Corp.
6.00%, 11/15/17 (Call 11/15/14)^a		8,900		9,178,125
6.38%, 11/15/19 (Call 11/15/15)^a		12,875		13,727,969
6.75%, 06/01/16		7,150		7,596,875


Security	Principal (000s)		Value

General Motors Financial Co. Inc.
2.63%, 07/10/17^a	$	4,440	$	4,489,950
2.75%, 05/15/16		11,865		12,042,975
3.25%, 05/15/18^a		12,520		12,817,350
3.50%, 07/10/19^a		12,950		13,366,861
4.25%, 05/15/23^a		12,965		13,337,744
4.38%, 09/25/21		21,050		22,049,875
4.75%, 08/15/17		15,384		16,422,420
6.75%, 06/01/18^a		8,515		9,685,813
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
4.88%, 03/15/19 (Call 07/15/16)^a		21,025		21,521,190
5.88%, 02/01/22 (Call 08/01/17)		22,845		23,558,906
6.00%, 08/01/20 (Call 02/01/17)^a		28,675		30,208,657
Series WI
3.50%, 03/15/17 (Call 02/15/17)^a		19,225		19,465,312
ILFC E-Capital Trust II
6.25%, 12/21/65 (Call 12/21/15)^a,b,d		6,400		6,208,000
International Lease Finance Corp.
3.88%, 04/15/18		13,350		13,383,375
4.63%, 04/15/21^a		8,100		8,262,000
5.75%, 05/15/16		16,210		16,922,849
5.88%, 04/01/19^a		11,800		12,714,658
5.88%, 08/15/22^a		11,600		12,658,500
6.25%, 05/15/19		19,850		21,720,658
8.25%, 12/15/20^a		16,680		20,153,358
8.63%, 09/15/15^a		3,500		3,692,980
8.63%, 01/15/22		11,246		13,999,162
8.75%, 03/15/17		25,500		28,678,356
8.88%, 09/01/17^a		8,190		9,375,199
Jefferies Finance LLC/JFIN Co- Issuer Corp.
6.88%, 04/15/22 (Call 04/15/17)^b		6,750		6,514,071
7.38%, 04/01/20 (Call 04/01/16)^b		11,200		11,088,000


SCHEDULESOF INVESTMENTS			43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

7.50%, 04/15/21 (Call 10/15/17)^b	$	5,050	$	5,024,830
Nationstar Mortgage LLC/Nationstar Capital Corp.
6.50%, 08/01/18 (Call 08/01/15)^a		7,850		7,653,750
6.50%, 07/01/21 (Call 01/01/17)		9,400		8,718,500
7.88%, 10/01/20 (Call 10/01/16)		6,500		6,386,250
Navient Corp.
4.63%, 09/25/17		7,921		8,079,420
4.88%, 06/17/19^a		14,500		14,717,500
5.50%, 01/15/19		21,350		22,097,250
5.50%, 01/25/23^a		16,015		16,015,000
6.00%, 01/25/17		18,821		19,903,207
6.13%, 03/25/24^a		12,300		12,730,500
6.25%, 01/25/16^a		26,261		27,304,247
7.25%, 01/25/22^a		12,450		13,881,750
8.00%, 03/25/20^a		25,450		29,140,250
8.45%, 06/15/18		39,350		45,006,562
Nuveen Investments Inc.
9.13%, 10/15/17 (Call 11/07/14)^a,b		4,100		4,376,750
9.50%, 10/15/20 (Call 10/15/16)^b		9,025		10,938,300
Springleaf Finance Corp.
6.90%, 12/15/17^a		40,530		43,975,050
7.75%, 10/01/21		9,600		10,752,000
Series I
5.40%, 12/01/15^a		10,100		10,403,000

				1,046,899,224
ELECTRIC — 3.79%
AES Corp./VA
4.88%, 05/15/23 (Call 05/15/18)^a		11,005		10,948,591
5.50%, 03/15/24 (Call 03/15/19)		13,200		13,458,313
7.38%, 07/01/21 (Call 06/01/21)^a		15,975		18,305,859
8.00%, 10/15/17		7,921		9,021,491
8.00%, 06/01/20		10,280		11,921,021
9.75%, 04/15/16		608		671,840


Security	Principal (000s)		Value

Calpine Corp.
5.38%, 01/15/23 (Call 10/15/18)	$	20,000	$	20,150,000
5.75%, 01/15/25 (Call 10/15/19)^a		25,300		25,679,500
5.88%, 01/15/24 (Call 11/01/18)^a,b		9,200		9,890,000
6.00%, 01/15/22 (Call 11/01/16)^b		11,550		12,430,687
7.88%, 01/15/23 (Call 01/15/17)^b		15,684		17,330,820
DPL Inc.
6.50%, 10/15/16 (Call 09/15/16)^a		1,115		1,190,203
7.25%, 10/15/21 (Call 07/15/21)		12,690		13,514,298
Dynegy Finance I Inc./Dynegy Finance II Inc.
6.75%, 11/01/19 (Call 05/01/17)^b		25,325		26,116,406
7.38%, 11/01/22 (Call 11/01/18)^b		25,160		26,543,800
7.63%, 11/01/24 (Call 11/01/19)^b		18,900		19,986,750
EDP Finance BV
4.90%, 10/01/19^b		15,650		16,315,125
5.25%, 01/14/21^b		12,448		12,992,600
6.00%, 02/02/18^b		16,200		17,536,500
Enel SpA
8.75%, 09/24/73 (Call 09/24/23)^a,b,d		20,457		23,883,547
FirstEnergy Corp.
Series A
2.75%, 03/15/18 (Call 02/15/18)		9,400		9,488,924
Series B
4.25%, 03/15/23 (Call 12/15/22)^a		14,750		14,781,499
FirstEnergy Transmission LLC
4.35%, 01/15/25 (Call 10/15/24)^b		9,550		9,779,891
GenOn Energy Inc.
9.50%, 10/15/18^a		11,260		11,710,595


44		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

9.88%, 10/15/20 (Call 10/15/15)^a	$	9,100	$	9,439,979
IPALCO Enterprises Inc.
5.00%, 05/01/18 (Call 04/01/18)		6,250		6,624,571
7.25%, 04/01/16^a,b		6,645		7,085,615
NRG Energy Inc.
6.25%, 07/15/22 (Call 07/15/18)		17,700		18,569,357
6.25%, 05/01/24 (Call 05/01/19)^b		16,250		16,796,600
6.63%, 03/15/23 (Call 09/15/17)^a		15,350		16,206,934
7.63%, 01/15/18^a		19,530		21,821,086
7.88%, 05/15/21 (Call 05/15/16)^a		18,788		20,463,730
8.25%, 09/01/20 (Call 09/01/15)		15,855		17,070,950
PPL Capital Funding Inc. Series A
6.70%, 03/30/67 (Call 03/30/17)^d		7,150		7,257,250
PPL Energy Supply LLC
4.60%, 12/15/21 (Call 09/15/21)^a		13,500		12,700,732
RJS Power Holdings LLC
5.13%, 07/15/19 (Call 07/15/16)^a,b		20,150		20,076,332
RRI Energy Inc.
7.88%, 06/15/17^a		12,170		12,338,799

				540,100,195
ELECTRONICS — 0.24%
Flextronics International Ltd.
4.63%, 02/15/20^a		8,425		8,593,500
5.00%, 02/15/23^a		7,850		8,046,250
Rexel SA
5.25%, 06/15/20 (Call 06/15/16)^a,b		8,850		8,916,375
6.13%, 12/15/19 (Call 12/15/15)^b		7,900		8,176,500

				33,732,625


Security	Principal (000s)		Value

ENGINEERING & CONSTRUCTION — 0.23%
Abengoa Finance SAU
7.75%, 02/01/20^a,b	$	7,650	$	7,994,250
8.88%, 11/01/17^a,b		12,093		13,151,137
AECOM Technology Corp.
5.75%, 10/15/22 (Call 10/15/17)^b		3,125		3,289,063
5.88%, 10/15/24 (Call 07/15/24)^a,b		7,950		8,367,375

				32,801,825
ENTERTAINMENT — 0.81%
AMC Entertainment Inc.
9.75%, 12/01/20 (Call 12/01/15)		1,570		1,742,700
Cinemark USA Inc.
4.88%, 06/01/23 (Call 06/01/18)		8,800		8,646,000
5.13%, 12/15/22 (Call 12/15/17)^a		5,900		5,929,500
GLP Capital LP/GLP Financing II Inc.
4.38%, 11/01/18 (Call 08/01/18)^a		8,700		8,939,250
4.88%, 11/01/20 (Call 08/01/20)		15,825		16,458,000
5.38%, 11/01/23 (Call 08/01/23)		8,050		8,472,625
Pinnacle Entertainment Inc.
6.38%, 08/01/21 (Call 08/01/16)		14,440		15,452,429
7.50%, 04/15/21 (Call 04/15/15)		16,886		18,046,912
Regal Entertainment Group
5.75%, 03/15/22 (Call 03/15/17)^a		12,850		12,689,375
WMG Acquisition Corp.
6.00%, 01/15/21 (Call 01/15/16)^b		7,039		7,205,549
6.75%, 04/15/22 (Call 04/15/17)^b		12,350		12,164,750

				115,747,090


SCHEDULESOF INVESTMENTS			45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

ENVIRONMENTAL CONTROL — 0.37%
Clean Harbors Inc.
5.13%, 06/01/21 (Call 12/01/16)^a	$	8,975	$	9,132,063
5.25%, 08/01/20 (Call 08/01/16)		14,279		14,635,975
Covanta Holding Corp.
5.88%, 03/01/24 (Call 03/01/19)		6,400		6,592,000
6.38%, 10/01/22 (Call 04/01/17)^a		6,375		6,789,375
7.25%, 12/01/20 (Call 12/01/15)		5,400		5,751,000
Tervita Corp.
8.00%, 11/15/18 (Call 11/15/15)^b		10,350		9,832,500

				52,732,913
FOOD — 1.43%
Albertsons Holdings LLC/Saturn Acquisition Merger Sub Inc.
7.75%, 10/15/22 (Call 10/15/17)^b		19,650		19,257,000
Aramark Services Inc.
5.75%, 03/15/20 (Call 03/15/15)^a		15,550		16,269,187
Big Heart Pet Brands
7.63%, 02/15/19 (Call 01/20/15)^a		1,194		1,191,015
H.J. Heinz Co.
4.25%, 10/15/20 (Call 04/15/15)^a		50,300		50,918,690
Post Holdings Inc.
6.00%, 12/15/22 (Call 06/15/18)^a,b		8,700		8,373,750
6.75%, 12/01/21 (Call 12/01/17)^b		13,175		13,158,531
7.38%, 02/15/22 (Call 02/15/17)^a		24,700		25,349,610
Smithfield Foods Inc.
5.25%, 08/01/18 (Call 08/01/15)^a,b		7,725		7,956,750
5.88%, 08/01/21 (Call 08/01/16)^a,b		7,175		7,623,438


Security	Principal (000s)		Value

6.63%, 08/15/22 (Call 08/15/17)	$	15,455	$	16,768,675
7.75%, 07/01/17		8,329		9,266,013
SUPERVALU Inc.
6.75%, 06/01/21 (Call 06/01/17)^a		5,650		5,565,250
8.00%, 05/01/16		9,400		10,105,000
U.S. Foods Inc.
8.50%, 06/30/19 (Call 01/20/15)		11,350		12,073,562

				203,876,471
FOREST PRODUCTS & PAPER — 0.05%
Verso Paper Holdings LLC/Verso Paper Inc.
11.75%, 01/15/19 (Call 01/15/15)^a		6,940		7,078,801

				7,078,801
GAS — 0.32%
NGL Energy Partners LP/NGL Energy Finance Corp.
5.13%, 07/15/19 (Call 06/15/19)^b		6,000		6,045,000
6.88%, 10/15/21 (Call 10/15/16)^b		6,250		6,625,000
Sabine Pass LNG LP
6.50%, 11/01/20 (Call 11/01/16)^a		6,600		6,979,942
7.50%, 11/30/16		24,600		26,393,020

				46,042,962
HEALTH CARE — PRODUCTS — 1.33%
Alere Inc.
6.50%, 06/15/20 (Call 06/15/16)		6,875		7,115,625
7.25%, 07/01/18 (Call 12/15/15)		8,350		8,882,396
8.63%, 10/01/18 (Call 01/20/15)		6,415		6,695,656
Biomet Inc.
6.50%, 08/01/20 (Call 08/01/15)		25,820		27,627,400
6.50%, 10/01/20 (Call 10/01/15)		13,500		14,326,875


46		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

ConvaTec Healthcare E SA
10.50%, 12/15/18 (Call 12/15/14)^b	$	12,147	$	12,875,820
Crimson Merger Sub Inc.
6.63%, 05/15/22 (Call 05/15/17)^a,b		22,825		21,341,375
DJO Finance LLC/DJO Finance Corp.
9.88%, 04/15/18 (Call 04/15/15)		6,850		7,226,750
Hologic Inc.
6.25%, 08/01/20 (Call 08/01/15)^a		15,625		16,406,250
Kinetic Concepts Inc./KCI USA Inc.
10.50%, 11/01/18 (Call 11/01/15)^a		29,490		32,512,725
12.50%, 11/01/19 (Call 11/01/15)		9,040		10,057,000
Mallinckrodt International Finance SA
4.75%, 04/15/23		9,300		8,951,250
Mallinckrodt International Finance SA/Mallinckrodt CB LLC
5.75%, 08/01/22 (Call 08/01/17)^b		14,600		15,293,500

				189,312,622
HEALTH CARE — SERVICES — 5.85%
Amsurg Corp.
5.63%, 07/15/22 (Call 07/15/17)^a,b		17,800		18,378,500
CHS/Community Health Systems Inc.
5.13%, 08/15/18 (Call 08/15/15)^a		25,900		26,903,625
5.13%, 08/01/21 (Call 02/01/17)		15,200		15,922,000
6.88%, 02/01/22 (Call 02/01/18)^a		49,850		53,838,000
7.13%, 07/15/20 (Call 07/15/16)^a		19,650		21,222,000
8.00%, 11/15/19 (Call 11/15/15)		32,718		35,335,440


Security	Principal (000s)		Value

DaVita HealthCare Partners Inc.
5.13%, 07/15/24 (Call 07/15/19)^a	$	28,150	$	28,713,000
5.75%, 08/15/22 (Call 08/15/17)^a		21,000		22,338,750
6.63%, 11/01/20 (Call 11/01/14)		12,000		12,630,000
Fresenius Medical Care U.S. Finance II Inc.
5.63%, 07/31/19^b		14,650		15,675,500
5.88%, 01/31/22^a,b		12,515		13,641,350
Fresenius Medical Care U.S. Finance Inc.
5.75%, 02/15/21^b		9,400		10,093,250
6.50%, 09/15/18^a,b		6,310		6,941,000
6.88%, 07/15/17		7,800		8,560,500
HCA Holdings Inc.
6.25%, 02/15/21		15,700		16,956,000
7.75%, 05/15/21 (Call 11/15/15)		24,230		26,107,825
HCA Inc.
3.75%, 03/15/19		24,905		24,936,131
4.25%, 10/15/19^a		10,100		10,264,125
4.75%, 05/01/23^a		20,290		20,619,713
5.00%, 03/15/24^a		33,200		34,196,000
5.25%, 04/15/25^a		15,950		16,548,125
5.88%, 03/15/22^a		21,550		23,570,312
5.88%, 05/01/23^a		21,400		22,951,500
6.50%, 02/15/16^a		13,950		14,717,250
6.50%, 02/15/20^a		46,630		52,050,737
7.25%, 09/15/20 (Call 03/15/15)^a		16,060		17,023,600
7.50%, 02/15/22		30,255		35,133,619
8.00%, 10/01/18		7,750		8,902,813
LifePoint Hospitals Inc.
5.50%, 12/01/21 (Call 12/01/16)		16,650		17,440,875
6.63%, 10/01/20 (Call 10/01/15)		5,900		6,268,750
MPH Acquisition Holdings LLC
6.63%, 04/01/22 (Call 04/01/17)^b		15,325		16,052,938


SCHEDULESOF INVESTMENTS			47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Tenet Healthcare Corp.
4.38%, 10/01/21^a	$	18,600	$	18,507,000
4.50%, 04/01/21		12,625		12,688,125
4.75%, 06/01/20^a		7,700		7,873,250
5.00%, 03/01/19^b		17,205		17,226,506
5.50%, 03/01/19^b		9,000		9,202,500
6.00%, 10/01/20^a		28,409		30,610,697
6.25%, 11/01/18		16,110		17,499,488
8.00%, 08/01/20 (Call 08/01/15)^a		12,160		13,011,200
8.13%, 04/01/22^a		45,600		52,326,000

				832,877,994
HOLDING COMPANIES — DIVERSIFIED — 0.25%
Harbinger Group Inc.
7.75%, 01/15/22 (Call 01/15/17)		9,200		9,338,000
7.88%, 07/15/19 (Call 01/15/16)		14,925		16,156,313
Nielsen Co. Luxembourg Sarl (The)
5.50%, 10/01/21 (Call 10/01/16)^a,b		10,200		10,557,000

				36,051,313
HOME BUILDERS — 1.13%
Brookfield Residential Properties Inc.
6.50%, 12/15/20 (Call 12/15/15)^a,b		10,150		10,784,375
Brookfield Residential Properties Inc./Brookfield Residential U.S. Corp.
6.13%, 07/01/22 (Call 07/01/17)^a,b		8,400		8,904,000
Centex Corp.
6.50%, 05/01/16^a		7,400		7,927,250
DR Horton Inc.
3.63%, 02/15/18 (Call 11/15/17)^a		6,700		6,800,500
3.75%, 03/01/19 (Call 12/01/18)		8,000		8,020,000
5.75%, 08/15/23 (Call 05/15/23)^a		6,600		7,012,500


Security	Principal (000s)		Value

K. Hovnanian Enterprises Inc.
7.25%, 10/15/20 (Call 10/15/15)^a,b	$	8,600	$	9,073,000
KB Home
4.75%, 05/15/19 (Call 02/15/19)^a		7,224		7,178,850
7.00%, 12/15/21 (Call 09/15/21)^a		7,350		7,846,125
Lennar Corp.
4.50%, 06/15/19 (Call 04/16/19)		7,750		7,905,000
4.75%, 12/15/17 (Call 09/15/17)		1,125		1,175,625
4.75%, 11/15/22 (Call 08/15/22)		9,950		9,800,750
12.25%, 06/01/17		7,325		8,991,437
Standard Pacific Corp.
8.38%, 05/15/18		8,875		10,250,625
8.38%, 01/15/21^a		7,570		8,856,900
Taylor Morrison Communities Inc./Monarch Communities Inc.
5.25%, 04/15/21 (Call 04/15/16)^a,b		8,000		8,020,000
Toll Brothers Finance Corp.
4.38%, 04/15/23 (Call 01/15/23)^a		6,250		6,125,000
5.88%, 02/15/22 (Call 11/15/21)		6,280		6,751,000
8.91%, 10/15/17		5,300		6,187,750
TRI Pointe Holdings Inc.
4.38%, 06/15/19^b		6,900		6,900,000
5.88%, 06/15/24^b		7,000		7,140,000

				161,650,687
HOUSEHOLD PRODUCTS & WARES — 1.75%
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC
5.75%, 10/15/20 (Call 10/15/15)^a		57,050		59,332,000
6.88%, 02/15/21 (Call 02/15/16)		16,900		17,998,500
7.13%, 04/15/19 (Call 01/20/15)		22,815		23,699,081


48		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

7.88%, 08/15/19 (Call 08/15/15)^a	$	24,360	$	26,174,820
8.25%, 02/15/21 (Call 02/15/16)^a		16,555		17,796,625
8.50%, 05/15/18 (Call 01/20/15)		16,160		16,766,000
9.00%, 04/15/19 (Call 01/20/15)		25,575		26,725,875
9.88%, 08/15/19 (Call 08/15/15)		38,471		42,005,331
Spectrum Brands Inc.
6.38%, 11/15/20 (Call 11/15/16)^a		8,760		9,285,600
6.63%, 11/15/22 (Call 11/15/17)^a		8,730		9,384,750

				249,168,582
INSURANCE — 0.27%
Hartford Financial Services Group Inc. (The)
8.13%, 06/15/68 (Call 06/15/18)^d		8,442		9,760,640
Hockey Merger Sub 2 Inc.
7.88%, 10/01/21 (Call 10/01/16)^a,b		14,450		15,064,125
Voya Financial Inc.
5.65%, 05/15/53 (Call 05/15/23)^a,d		13,525		13,525,000

				38,349,765
INTERNET — 0.57%
Equinix Inc.
4.88%, 04/01/20 (Call 04/01/17)		7,500		7,631,250
5.38%, 04/01/23 (Call 04/01/18)^a		16,450		16,964,062
7.00%, 07/15/21 (Call 07/15/16)		13,704		14,937,360
IAC/InterActiveCorp
4.75%, 12/15/22 (Call 12/15/17)		7,700		7,546,000
4.88%, 11/30/18 (Call 11/30/14)^a		8,100		8,343,000


Security	Principal (000s)		Value

Ymobile Corp.
8.25%, 04/01/18 (Call 04/01/15)^b	$	4,725	$	5,014,170
Zayo Group LLC/Zayo Capital Inc.
8.13%, 01/01/20 (Call 07/01/15)^a		11,402		12,200,140
10.13%, 07/01/20 (Call 07/01/16)^a		7,725		8,632,688

				81,268,670
IRON & STEEL — 1.82%
AK Steel Corp.
7.63%, 05/15/20 (Call 05/15/15)^a		9,000		9,045,000
7.63%, 10/01/21 (Call 10/01/17)		8,550		8,592,750
ArcelorMittal
4.25%, 08/05/15^a		1,200		1,227,000
4.25%, 03/01/16^a		8,550		8,742,375
5.00%, 02/25/17		18,901		19,751,545
5.75%, 08/05/20^a		14,078		14,957,875
6.00%, 03/01/21^a		25,085		26,715,525
6.13%, 06/01/18^a		25,900		27,842,500
6.75%, 02/25/22^a		16,900		18,801,250
10.35%, 06/01/19		26,800		33,031,000
Commercial Metals Co.
6.50%, 07/15/17		6,378		6,838,419
7.35%, 08/15/18		8,100		8,985,432
Steel Dynamics Inc.
5.13%, 10/01/21 (Call 10/01/17)^a,b		12,955		13,408,425
5.25%, 04/15/23 (Call 04/15/18)^a		6,950		7,271,438
5.50%, 10/01/24 (Call 10/01/19)^a,b		8,450		8,914,750
6.13%, 08/15/19 (Call 08/15/16)		6,800		7,310,000
United States Steel Corp.
6.05%, 06/01/17^a		7,384		7,911,077
7.00%, 02/01/18		9,000		9,922,500
7.38%, 04/01/20		10,950		12,226,964
7.50%, 03/15/22 (Call 03/15/17)		6,800		7,446,000

				258,941,825


SCHEDULESOF INVESTMENTS			49

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

LEISURE TIME — 0.06%
Royal Caribbean Cruises Ltd.
5.25%, 11/15/22	$	8,005	$	8,310,865
Sabre GLBL Inc.
8.50%, 05/15/19 (Call 05/15/15)^b		142		152,650

				8,463,515
LODGING — 2.60%
Boyd Gaming Corp.
9.13%, 12/01/18 (Call 12/01/14)^a		8,150		8,553,847
Caesars Entertainment Operating Co. Inc.
8.50%, 02/15/20 (Call 02/15/16)^a		16,350		12,344,250
9.00%, 02/15/20 (Call 02/15/16)^a		21,136		15,958,475
9.00%, 02/15/20 (Call 02/15/16)		21,000		15,855,789
10.00%, 12/15/18 (Call 01/20/15)^a		11,276		1,808,816
10.00%, 12/15/18 (Call 01/20/15)		48,605		7,560,585
10.75%, 02/01/16 (Call 01/20/15)^a		8,250		1,632,295
11.25%, 06/01/17 (Call 01/20/15)		34,060		25,763,117
12.75%, 04/15/18 (Call 01/20/15)		10,645		1,916,100
Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Properties Finance Inc.
8.00%, 10/01/20 (Call 10/01/16)^b		17,300		16,716,125
11.00%, 10/01/21 (Call 10/01/16)^a,b		18,950		17,718,250
Caesars Growth Properties Holdings LLC/Caesars Growth Properties Finance Inc.
9.38%, 05/01/22 (Call 05/01/17)^b		9,625		8,941,807


Security	Principal (000s)		Value

Felcor Lodging LP
5.63%, 03/01/23 (Call 03/01/18)	$	8,350	$	8,307,325
6.75%, 06/01/19 (Call 06/01/15)		8,770		9,143,300
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.
5.63%, 10/15/21 (Call 10/15/16)^b		24,100		25,305,000
MGM Resorts International
5.25%, 03/31/20^a		9,200		9,430,000
6.63%, 12/15/21^a		21,000		22,995,000
6.75%, 10/01/20^a		17,400		19,140,000
7.50%, 06/01/16		9,920		10,664,000
7.63%, 01/15/17^a		12,100		13,204,125
7.75%, 03/15/22		16,300		18,826,500
8.63%, 02/01/19^a		15,312		17,838,480
10.00%, 11/01/16		7,850		8,890,125
11.38%, 03/01/18		8,320		10,150,400
Studio City Finance Ltd.
8.50%, 12/01/20 (Call 12/01/15)^b		12,700		13,811,250
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
4.25%, 05/30/23 (Call 02/28/23)^a,b		7,900		7,900,000
5.38%, 03/15/22 (Call 03/15/17)^a		16,200		17,010,000
7.75%, 08/15/20 (Call 08/15/15)^a		22,160		23,766,600

				371,151,561
MACHINERY — 0.86%
BlueLine Rental Finance Corp.
7.00%, 02/01/19 (Call 02/01/16)^b		13,600		14,348,000
Case New Holland Industrial Inc.
7.88%, 12/01/17		24,000		27,060,000
CNH Industrial Capital LLC
3.25%, 02/01/17		8,300		8,300,000
3.38%, 07/15/19^a,b		8,200		7,984,750
3.63%, 04/15/18^a		10,250		10,301,250


50		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

3.88%, 11/01/15^a	$	11,320	$	11,475,650
6.25%, 11/01/16		8,170		8,701,050
Manitowoc Co. Inc. (The)
8.50%, 11/01/20 (Call 11/01/15)		625		676,563
Terex Corp.
6.00%, 05/15/21 (Call 11/15/16)		14,750		15,376,875
Zebra Technologies Corp.
7.25%, 10/15/22 (Call 10/15/17)^b		17,095		17,949,750

				122,173,888
MANUFACTURING — 0.99%
Bombardier Inc.
4.25%, 01/15/16^a,b		10,925		11,184,469
4.75%, 04/15/19^a,b		10,600		10,947,680
5.75%, 03/15/22^a,b		8,300		8,466,000
6.00%, 10/15/22 (Call 04/15/17)^a,b		20,000		20,636,000
6.13%, 01/15/23^a,b		20,325		20,985,562
7.50%, 03/15/18^a,b		11,050		12,210,250
7.75%, 03/15/20^a,b		15,120		16,802,100
Gates Global LLC/Gates Global Co.
6.00%, 07/15/22 (Call 07/15/17)^b		16,675		16,091,375
Trinseo Materials Operating SCA/Trinseo Materials Finance Inc.
8.75%, 02/01/19 (Call 08/01/15)^a		22,545		23,897,700

				141,221,136
MEDIA — 8.72%
AMC Networks Inc.
4.75%, 12/15/22 (Call 12/15/17)		9,375		9,328,125
7.75%, 07/15/21 (Call 07/15/16)		12,100		13,158,750
Cablevision Systems Corp.
5.88%, 09/15/22^a		10,900		11,090,750
7.75%, 04/15/18		12,400		13,764,000
8.00%, 04/15/20^a		8,550		9,811,125
8.63%, 09/15/17^a		18,170		20,532,100


Security	Principal (000s)		Value

CCO Holdings LLC/CCO Holdings Capital Corp.
5.13%, 02/15/23 (Call 02/15/18)	$	16,350	$	16,288,687
5.25%, 03/15/21 (Call 03/15/16)^a		7,900		7,998,750
5.25%, 09/30/22 (Call 09/30/17)^a		20,150		20,351,500
5.75%, 09/01/23 (Call 03/01/18)^a		7,550		7,738,750
5.75%, 01/15/24 (Call 07/15/18)^a		17,042		17,468,050
6.50%, 04/30/21 (Call 04/30/15)		25,430		26,828,650
6.63%, 01/31/22 (Call 01/31/17)		12,450		13,228,125
7.00%, 01/15/19 (Call 01/20/15)		22,025		22,961,062
7.25%, 10/30/17 (Call 01/20/15)^a		15,080		15,702,050
7.38%, 06/01/20 (Call 12/01/15)^a		13,020		13,947,675
8.13%, 04/30/20 (Call 04/30/15)		11,250		11,925,000
CCOH Safari LLC
5.50%, 12/01/22 (Call 12/01/17)		3,740		3,777,400
5.75%, 12/01/24 (Call 12/01/19)		6,185		6,219,791
Cequel Communications Holdings I LLC/Cequel Capital Corp.
5.13%, 12/15/21 (Call 06/15/16)^b		7,550		7,399,000
5.13%, 12/15/21 (Call 06/15/16)^a,b		13,325		13,058,500
6.38%, 09/15/20 (Call 09/15/15)^b		25,825		26,922,562
Clear Channel Worldwide Holdings Inc.
6.50%, 11/15/22 (Call 11/15/17)		44,635		46,452,106


SCHEDULESOF INVESTMENTS			51

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Series A
7.63%, 03/15/20 (Call 03/15/15)^a	$	500	$	527,500
Series B
7.63%, 03/15/20 (Call 03/15/15)^a		32,480		34,510,000
CSC Holdings LLC
5.25%, 06/01/24^b		12,350		12,350,000
6.75%, 11/15/21^a		15,500		17,243,750
8.63%, 02/15/19^a		9,014		10,580,183
DISH DBS Corp.
4.25%, 04/01/18^a		19,750		20,260,105
4.63%, 07/15/17^a		14,000		14,630,000
5.00%, 03/15/23^a		25,325		25,293,344
5.13%, 05/01/20^a		19,150		19,903,384
5.88%, 07/15/22^a		31,900		33,814,000
6.75%, 06/01/21		33,730		37,355,975
7.13%, 02/01/16^a		19,784		20,980,928
7.88%, 09/01/19		24,116		27,977,485
Gannett Co. Inc.
5.13%, 10/15/19 (Call 10/15/16)		11,335		11,703,388
5.13%, 07/15/20 (Call 07/15/16)		9,450		9,804,375
6.38%, 10/15/23 (Call 10/15/18)		10,380		11,288,250
iHeartCommunications Inc.
9.00%, 12/15/19 (Call 07/15/15)^a		25,800		26,122,500
9.00%, 03/01/21 (Call 03/01/16)^a		26,640		26,573,400
9.00%, 09/15/22 (Call 09/15/17)^a,b		17,100		17,100,000
10.00%, 01/15/18 (Call 07/15/16)^a		14,400		12,015,000
11.25%, 03/01/21 (Call 03/01/16)^a		8,550		9,052,313
McClatchy Co. (The)
9.00%, 12/15/22 (Call 12/15/17)^a		15,030		17,021,475
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance
9.75%, 04/01/21 (Call 04/01/16)^a		13,000		14,690,000


Security	Principal (000s)		Value

Nara Cable Funding Ltd.
8.88%, 12/01/18 (Call 12/01/14)^b	$	12,350	$	12,946,875
Nielsen Finance LLC/Nielsen Finance Co.
4.50%, 10/01/20 (Call 10/01/16)^a		12,800		12,802,560
5.00%, 04/15/22 (Call 04/15/17)^a,b		25,300		25,742,750
Numericable Group SA
4.88%, 05/15/19 (Call 05/15/16)^a,b		38,000		38,095,000
6.00%, 05/15/22 (Call 05/15/17)^b		67,700		69,561,750
6.25%, 05/15/24 (Call 05/15/19)^a,b		25,750		26,522,500
Quebecor Media Inc.
5.75%, 01/15/23		14,100		14,523,000
Sinclair Television Group Inc.
5.38%, 04/01/21 (Call 04/01/16)		9,150		9,218,625
5.63%, 08/01/24 (Call 08/01/19)^a,b		8,800		8,690,000
6.13%, 10/01/22 (Call 10/01/17)^a		8,275		8,564,625
Sirius XM Radio Inc.
4.25%, 05/15/20 (Call 05/15/16)^a,b		8,650		8,585,125
4.63%, 05/15/23 (Call 05/15/18)^b		8,025		7,704,000
5.75%, 08/01/21 (Call 08/01/16)^a,b		9,225		9,547,875
5.88%, 10/01/20 (Call 10/01/16)^b		10,650		11,209,125
6.00%, 07/15/24 (Call 07/15/19)^b		26,400		27,588,000
Time Inc.
5.75%, 04/15/22 (Call 04/15/17)^a,b		4,525		4,423,188
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH
5.50%, 01/15/23 (Call 01/15/18)^a,b		15,900		16,615,500


52		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

7.50%, 03/15/19 (Call 03/15/15)^b	$	7,550	$	7,946,375
Unitymedia KabelBW GmbH
6.13%, 01/15/25 (Call 01/15/20)^b		14,050		14,664,687
Univision Communications Inc.
5.13%, 05/15/23 (Call 05/15/18)^a,b		10,190		10,724,975
6.75%, 09/15/22 (Call 09/15/17)^b		18,649		20,583,834
6.88%, 05/15/19 (Call 05/15/15)^a,b		19,400		20,418,500
7.88%, 11/01/20 (Call 11/01/15)^b		10,980		11,858,400
8.50%, 05/15/21 (Call 11/15/15)^a,b		15,300		16,562,250
Videotron Ltd.
5.00%, 07/15/22		12,650		13,092,750
5.38%, 06/15/24 (Call 03/15/24)^b		10,400		10,712,000
9.13%, 04/15/18 (Call 01/19/15)		1,829		1,888,443
WideOpenWest Finance LLC/WideOpenWest Capital Corp.
10.25%, 07/15/19 (Call 07/15/15)		13,600		14,926,000

				1,242,468,575
MINING — 2.05%
Alcoa Inc.
5.13%, 10/01/24 (Call 07/01/24)		16,400		17,199,500
5.40%, 04/15/21 (Call 01/15/21)^a		16,724		18,270,970
5.55%, 02/01/17		2,500		2,682,250
5.72%, 02/23/19^a		13,290		14,826,656
5.87%, 02/23/22^a		12,090		13,465,238
6.15%, 08/15/20		16,750		18,948,437
6.75%, 07/15/18		10,665		12,118,106
Aleris International Inc.
7.63%, 02/15/18 (Call 01/20/15)^a		9,150		9,401,625
7.88%, 11/01/20 (Call 11/01/15)^a		7,900		8,156,750


Security	Principal (000s)		Value

First Quantum Minerals Ltd.
6.75%, 02/15/20 (Call 02/15/17)^b	$	18,223	$	17,904,098
7.00%, 02/15/21 (Call 02/15/18)^a,b		17,973		17,523,675
7.25%, 05/15/22 (Call 05/15/17)^b		16,625		16,292,500
FMG Resources August 2006 Pty Ltd.
6.00%, 04/01/17 (Call 04/01/15)^a,b		17,400		17,704,500
6.88%, 02/01/18 (Call 01/19/15)^a,b		6,556		6,703,056
6.88%, 04/01/22 (Call 04/01/17)^a,b		16,900		17,491,500
8.25%, 11/01/19 (Call 11/01/15)^a,b		25,870		26,872,462
Lundin Mining Corp.
7.50%, 11/01/20 (Call 11/01/17)^b		5,825		6,087,125
7.88%, 11/01/22 (Call 11/01/18)^b		5,000		5,212,500
Novelis Inc.
8.38%, 12/15/17 (Call 01/20/15)^a		18,693		19,534,185
8.75%, 12/15/20 (Call 12/15/15)^a		23,240		25,360,650

				291,755,783
OFFICE & BUSINESS EQUIPMENT — 0.22%
CDW LLC/CDW Finance Corp.
6.00%, 08/15/22 (Call 08/15/17)^a		11,300		11,921,500
8.50%, 04/01/19 (Call 04/01/15)^a		17,616		18,761,040

				30,682,540
OIL & GAS — 9.53%
American Energy-Permian Basin LLC/AEPB Finance Corp.
7.13%, 11/01/20 (Call 01/31/17)^b		11,000		9,611,213
7.38%, 11/01/21 (Call 07/31/17)^b		9,428		8,235,835


SCHEDULESOF INVESTMENTS			53

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Antero Resources Corp.
5.13%, 12/01/22 (Call 06/01/17)^a,b	$	18,100	$	18,018,117
Antero Resources Finance Corp.
5.38%, 11/01/21 (Call 11/01/16)		16,200		16,383,627
6.00%, 12/01/20 (Call 12/01/15)		9,450		9,828,000
Athlon Holdings LP/Athlon Finance Corp.
6.00%, 05/01/22 (Call 05/01/17)^b		11,250		12,073,990
7.38%, 04/15/21 (Call 04/15/16)		8,350		9,115,748
Berry Petroleum Co. LLC
6.38%, 09/15/22 (Call 03/15/17)^a		9,750		9,017,905
BreitBurn Energy Partners LP/BreitBurn Finance Corp.
7.88%, 04/15/22 (Call 01/15/17)		13,250		12,854,637
California Resources Corp.
5.00%, 01/15/20 (Call 12/15/19)^b		9,500		9,583,125
5.50%, 09/15/21 (Call 06/15/21)^b		5,550		5,674,875
6.00%, 11/15/24 (Call 08/15/24)^b		13,675		13,999,781
Calumet Specialty Products Partners LP/Calumet Finance Corp.
6.50%, 04/15/21 (Call 04/15/17)^b		15,175		14,643,875
Chaparral Energy Inc.
7.63%, 11/15/22 (Call 05/15/17)^a		9,700		9,578,750
8.25%, 09/01/21 (Call 09/01/16)		6,870		6,973,050
Chesapeake Energy Corp.
3.25%, 03/15/16 (Call 01/20/15)^a		8,775		8,805,621
4.88%, 04/15/22 (Call 04/15/17)^a		21,250		21,770,912


Security	Principal (000s)		Value

5.38%, 06/15/21 (Call 06/15/16)^a	$	13,850	$	14,410,755
5.75%, 03/15/23^a		18,300		20,109,495
6.13%, 02/15/21		17,580		19,539,950
6.50%, 08/15/17		10,540		11,458,452
6.63%, 08/15/20^a		23,600		26,633,114
6.88%, 11/15/20^a		7,176		8,210,087
7.25%, 12/15/18^a		11,245		12,858,448
Cimarex Energy Co.
4.38%, 06/01/24 (Call 03/01/24)		11,325		11,526,057
Concho Resources Inc.
5.50%, 10/01/22 (Call 10/01/17)		9,700		10,252,340
5.50%, 04/01/23 (Call 10/01/17)		24,083		25,505,925
6.50%, 01/15/22 (Call 01/15/17)^a		9,680		10,406,000
7.00%, 01/15/21 (Call 01/15/16)		8,517		9,186,239
Denbury Resources Inc.
4.63%, 07/15/23 (Call 01/15/18)^a		19,800		18,218,946
5.50%, 05/01/22 (Call 05/01/17)^a		21,575		21,280,467
6.38%, 08/15/21 (Call 08/15/16)		5,480		5,705,237
Energy XXI Gulf Coast Inc.
6.88%, 03/15/24 (Call 03/15/19)^a,b		9,150		7,323,953
7.50%, 12/15/21 (Call 12/15/16)^a		8,590		7,163,076
9.25%, 12/15/17 (Call 12/15/14)^a		12,000		11,741,123
EP Energy LLC/Everest Acquisition Finance Inc.
Series WI
6.88%, 05/01/19 (Call 05/01/15)^a		12,450		13,006,605
9.38%, 05/01/20 (Call 05/01/16)^a		32,715		35,976,685
EPL Oil & Gas Inc.
8.25%, 02/15/18 (Call 02/15/15)^a		9,200		8,947,000


54		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

EXCO Resources Inc.
7.50%, 09/15/18 (Call 01/20/15)^a	$	13,485	$	11,919,633
8.50%, 04/15/22 (Call 04/15/17)^a		7,825		6,875,130
Halcon Resources Corp.
8.88%, 05/15/21 (Call 11/15/16)		22,300		18,445,436
9.25%, 02/15/22 (Call 08/15/17)^a		6,400		5,307,976
9.75%, 07/15/20 (Call 07/15/16)		17,795		15,011,056
Hercules Offshore Inc.
8.75%, 07/15/21 (Call 07/15/17)^a,b		6,850		4,344,643
Hilcorp Energy I LP/Hilcorp Finance Co.
5.00%, 12/01/24 (Call 06/01/19)^b		8,425		8,082,418
Jupiter Resources Inc.
8.50%, 10/01/22 (Call 10/01/17)^b		17,000		14,960,000
Kodiak Oil & Gas Corp.
5.50%, 02/01/22 (Call 08/01/17)		6,600		6,700,436
8.13%, 12/01/19 (Call 12/01/15)^a		13,259		14,273,254
Laredo Petroleum Inc.
5.63%, 01/15/22 (Call 01/15/17)		7,525		7,468,562
7.38%, 05/01/22 (Call 05/01/17)^a		8,400		8,822,662
9.50%, 02/15/19 (Call 02/15/15)		9,025		9,584,503
Linn Energy LLC/Linn Energy Finance Corp.
6.25%, 11/01/19 (Call 11/01/15)		29,250		27,055,326
6.50%, 05/15/19 (Call 05/15/15)^a		21,100		19,882,192
6.50%, 09/15/21 (Call 09/15/17)		11,575		10,568,238
7.75%, 02/01/21 (Call 09/15/15)		17,260		17,039,074


Security	Principal (000s)		Value

8.63%, 04/15/20 (Call 04/15/15)	$	22,995	$	23,163,558
MEG Energy Corp.
6.38%, 01/30/23 (Call 07/30/17)^b		13,250		13,015,789
6.50%, 03/15/21 (Call 03/15/15)^a,b		13,200		13,137,564
7.00%, 03/31/24 (Call 09/30/18)^a,b		16,325		16,434,046
Memorial Production Partners LP/Memorial Production Finance Corp.
6.88%, 08/01/22 (Call 08/01/17)^b		10,100		9,169,428
7.63%, 05/01/21 (Call 05/01/17)		10,000		9,649,895
Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC
9.25%, 06/01/21 (Call 06/01/16)		11,700		10,077,504
10.75%, 10/01/20 (Call 10/01/16)^a		9,664		8,730,911
Newfield Exploration Co.
5.63%, 07/01/24		15,300		16,561,214
5.75%, 01/30/22^a		11,300		12,288,569
6.88%, 02/01/20 (Call 02/01/15)		11,085		11,526,635
Oasis Petroleum Inc.
6.50%, 11/01/21 (Call 11/01/16)		6,850		7,089,750
6.88%, 03/15/22 (Call 09/15/17)		17,675		18,602,937
6.88%, 01/15/23 (Call 07/15/17)^a		6,000		6,270,000
7.25%, 02/01/19 (Call 02/01/15)^a		5,965		6,143,950
Offshore Group Investments Ltd.
7.13%, 04/01/23 (Call 04/01/18)^a		13,325		11,024,880
7.50%, 11/01/19 (Call 11/01/15)^a		18,800		16,079,114


SCHEDULESOF INVESTMENTS			55

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Pacific Drilling SA
5.38%, 06/01/20 (Call 06/01/16)^a,b	$	11,775	$	10,624,968
Pacific Drilling V Ltd.
7.25%, 12/01/17 (Call 12/01/15)^b		8,075		7,913,500
Paragon Offshore PLC
6.75%, 07/15/22 (Call 07/15/18)^a,b		7,925		6,300,375
7.25%, 08/15/24 (Call 08/15/19)^a,b		9,400		7,285,000
Penn Virginia Corp.
8.50%, 05/01/20 (Call 05/01/17)^a		13,850		13,573,000
Precision Drilling Corp.
5.25%, 11/15/24 (Call 05/15/19)^b		4,537		4,264,780
6.63%, 11/15/20 (Call 11/15/15)		11,020		11,323,193
Puma International Financing SA
6.75%, 02/01/21 (Call 02/01/17)^b		14,000		14,315,000
QEP Resources Inc.
5.25%, 05/01/23 (Call 02/01/23)		8,750		8,528,284
5.38%, 10/01/22 (Call 07/01/22)		7,960		7,868,662
6.88%, 03/01/21^a		10,600		11,440,795
Range Resources Corp.
5.00%, 08/15/22 (Call 02/15/17)		10,300		10,840,271
5.00%, 03/15/23 (Call 03/15/18)^a		12,250		12,909,598
5.75%, 06/01/21 (Call 06/01/16)^a		8,500		9,010,000
6.75%, 08/01/20 (Call 08/01/15)		8,250		8,725,936
Rosetta Resources Inc.
5.63%, 05/01/21 (Call 05/01/17)^a		10,390		10,157,356
5.88%, 06/01/22 (Call 12/01/17)^a		11,160		10,852,693


Security	Principal (000s)		Value

5.88%, 06/01/24 (Call 06/01/19)	$	7,500	$	7,177,762
Samson Investment Co.
9.75%, 02/15/20 (Call 02/15/16)^a		35,630		26,343,931
Sanchez Energy Corp.
6.13%, 01/15/23 (Call 07/15/18)^a,b		21,050		20,042,174
7.75%, 06/15/21 (Call 06/15/17)		8,250		8,620,696
SandRidge Energy Inc.
7.50%, 03/15/21 (Call 03/15/16)^a		18,520		16,760,507
7.50%, 02/15/23 (Call 08/15/17)		13,381		12,109,805
8.13%, 10/15/22 (Call 04/15/17)^a		14,000		12,765,948
8.75%, 01/15/20 (Call 01/15/15)^a		7,475		6,982,827
Seventy Seven Energy Inc.
6.50%, 07/15/22 (Call 07/15/17)^b		8,365		7,904,846
Seventy Seven Operating LLC
6.63%, 11/15/19 (Call 11/15/15)^a		11,360		11,218,000
SM Energy Co.
5.00%, 01/15/24 (Call 07/15/18)		8,425		7,919,500
6.50%, 01/01/23 (Call 07/01/17)		6,327		6,535,587
Tesoro Corp.
4.25%, 10/01/17 (Call 09/01/17)		4,200		4,316,135
5.38%, 10/01/22 (Call 10/01/17)^a		8,175		8,410,978
Tullow Oil PLC
6.00%, 11/01/20 (Call 11/01/16)^a,b		11,200		10,584,000
6.25%, 04/15/22 (Call 04/15/17)^a,b		10,350		9,467,145
Ultra Petroleum Corp.
5.75%, 12/15/18 (Call 12/15/15)^a,b		8,070		8,009,475


56		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

6.13%, 10/01/24 (Call 10/01/19)^a,b	$	14,650	$	13,844,250
Whiting Petroleum Corp.
5.00%, 03/15/19 (Call 12/15/18)^a		17,550		18,164,250
5.75%, 03/15/21 (Call 12/15/20)		18,983		20,121,980
WPX Energy Inc.
5.25%, 01/15/17^a		6,530		6,816,341
5.25%, 09/15/24 (Call 06/15/24)		8,720		8,524,629
6.00%, 01/15/22 (Call 10/15/21)^a		17,795		18,722,273

				1,358,231,748
OIL & GAS SERVICES — 0.28%
CGG SA
6.50%, 06/01/21 (Call 06/01/16)^a		11,360		9,144,800
6.88%, 01/15/22 (Call 07/15/17)^a,b		7,925		6,379,625
7.75%, 05/15/17 (Call 01/19/15)		1,912		1,854,640
SESI LLC
6.38%, 05/01/19 (Call 05/01/15)		7,600		7,954,825
7.13%, 12/15/21 (Call 12/15/16)		12,760		13,877,357

				39,211,247
PACKAGING & CONTAINERS — 1.43%
Ardagh Packaging Finance PLC
9.13%, 10/15/20 (Call 10/15/15)^a,b		12,796		13,819,680
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc.
6.00%, 06/30/21 (Call 06/30/17)^a,b		7,050		6,979,500
6.25%, 01/31/19 (Call 01/31/16)^a,b		6,525		6,557,625
6.75%, 01/31/21 (Call 01/31/17)^a,b		6,700		6,901,000


Security	Principal (000s)		Value

Ball Corp.
4.00%, 11/15/23^a	$	18,750	$	18,000,000
5.00%, 03/15/22^a		12,946		13,528,570
5.75%, 05/15/21 (Call 11/15/15)^a		7,050		7,384,875
6.75%, 09/15/20 (Call 03/15/15)^a		7,980		8,379,000
Berry Plastics Corp.
5.50%, 05/15/22 (Call 05/15/17)^a		8,500		8,542,500
9.75%, 01/15/21 (Call 01/15/16)^a		16,165		18,023,975
Beverage Packaging Holdings Luxembourg II SA/Beverage Packaging Holdings II Issuer Inc.
5.63%, 12/15/16 (Call 12/15/15)^b		10,500		10,526,250
6.00%, 06/15/17 (Call 06/15/16)^b		11,350		11,378,375
Crown Americas LLC/Crown Americas Capital Corp. III
6.25%, 02/01/21 (Call 02/01/16)		12,265		13,000,900
Crown Americas LLC/Crown Americas Capital Corp. IV
4.50%, 01/15/23^a		17,100		16,800,750
Sealed Air Corp.
5.25%, 04/01/23 (Call 01/01/23)^a,b		7,400		7,622,000
6.50%, 12/01/20 (Call 09/01/20)^a,b		6,500		7,198,750
8.13%, 09/15/19 (Call 09/15/15)^a,b		12,460		13,503,525
8.38%, 09/15/21 (Call 09/15/16)^b		13,220		14,971,650

				203,118,925
PHARMACEUTICALS — 1.51%
Endo Finance LLC
5.75%, 01/15/22 (Call 01/15/17)^a,b		11,075		11,158,062


SCHEDULESOF INVESTMENTS			57

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Endo Finance LLC & Endo Finco Inc.
5.38%, 01/15/23 (Call 07/15/17)^b	$	10,500	$	10,276,875
7.00%, 07/15/19 (Call 07/15/15)^a,b		7,475		7,867,438
7.00%, 12/15/20 (Call 12/15/15)^b		1,370		1,445,350
Grifols Worldwide Operations Ltd.
5.25%, 04/01/22 (Call 04/01/17)^b		16,175		16,579,375
NBTY Inc.
9.00%, 10/01/18 (Call 01/20/15)		12,125		12,594,844
Valeant Pharmaceuticals International Inc.
5.63%, 12/01/21 (Call 12/01/16)^a,b		14,450		14,323,562
6.38%, 10/15/20 (Call 10/15/16)^a,b		33,950		34,798,750
6.75%, 08/15/18 (Call 08/15/15)^a,b		28,988		30,835,985
6.75%, 08/15/21 (Call 02/15/16)^a,b		10,520		10,901,350
6.88%, 12/01/18 (Call 12/01/14)^b		15,200		15,751,000
7.00%, 10/01/20 (Call 10/01/15)^a,b		10,735		11,244,912
7.25%, 07/15/22 (Call 07/15/16)^b		7,950		8,377,313
7.50%, 07/15/21 (Call 07/15/16)^b		27,600		29,566,500

				215,721,316
PIPELINES — 4.24%
Access Midstream Partners LP/ACMP Finance Corp.
4.88%, 05/15/23 (Call 12/15/17)^a		23,700		24,776,885
4.88%, 03/15/24 (Call 03/15/19)^a		10,897		11,399,996
5.88%, 04/15/21 (Call 04/15/15)^a		11,689		12,314,851


Security	Principal (000s)		Value

6.13%, 07/15/22 (Call 01/15/17)^a	$	11,770	$	12,760,753
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp.
4.75%, 11/15/21 (Call 05/15/16)		6,900		6,905,951
5.88%, 08/01/23 (Call 02/01/18)		10,225		10,622,058
6.63%, 10/01/20 (Call 10/01/16)		8,300		8,834,885
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.
6.00%, 12/15/20 (Call 12/15/16)		7,865		7,982,975
6.13%, 03/01/22 (Call 11/01/16)		9,369		9,452,009
DCP Midstream LLC
5.85%, 05/21/43 (Call 05/21/23)^a,b,d		9,061		8,937,229
Energy Transfer Equity LP
5.88%, 01/15/24		18,725		19,661,250
7.50%, 10/15/20^a		18,530		21,355,825
Kinder Morgan Finance Co. LLC
5.70%, 01/05/16^a		11,745		12,247,937
6.00%, 01/15/18^b		12,740		13,918,213
Kinder Morgan Inc./DE
5.00%, 02/15/21 (Call 01/15/21)^a,b		14,375		15,219,531
5.63%, 11/15/23 (Call 08/15/23)^a,b		12,450		13,632,750
7.00%, 06/15/17^a		11,809		13,107,990
7.25%, 06/01/18		7,300		8,298,348
8.25%, 02/15/16^a		2,300		2,485,688
MarkWest Energy Partners LP/MarkWest Energy Finance Corp.
4.50%, 07/15/23 (Call 04/15/23)^a		17,050		17,433,814
5.50%, 02/15/23 (Call 08/15/17)^a		12,075		12,833,917
6.25%, 06/15/22 (Call 12/15/16)		7,591		8,213,047


58		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

6.75%, 11/01/20 (Call 11/01/15)	$	7,965	$	8,438,941
NGPL PipeCo LLC
7.12%, 12/15/17^a,b		19,990		20,056,601
9.63%, 06/01/19 (Call 06/01/15)^a,b		8,900		9,482,291
NuStar Logistics LP
4.80%, 09/01/20		7,518		7,477,469
ONEOK Inc.
4.25%, 02/01/22 (Call 11/02/21)^a		10,000		9,894,366
Penn Virginia Resource Partners LP/Penn Virginia Resource Finance Corp.
6.50%, 05/15/21 (Call 05/15/16)		3,725		3,952,920
8.38%, 06/01/20 (Call 06/01/16)		675		745,875
Regency Energy Partners LP/Regency Energy Finance Corp.
4.50%, 11/01/23 (Call 08/01/23)		11,450		11,280,334
5.00%, 10/01/22 (Call 07/01/22)		11,125		11,291,875
5.50%, 04/15/23 (Call 10/15/17)^a		12,529		12,967,515
5.75%, 09/01/20 (Call 06/01/20)^a		6,650		7,075,424
5.88%, 03/01/22 (Call 12/01/21)^a		16,035		17,157,450
6.50%, 07/15/21 (Call 07/15/16)^a		8,000		8,489,494
6.88%, 12/01/18 (Call 12/01/14)^a		10,319		10,705,963
Rockies Express Pipeline LLC
5.63%, 04/15/20^b		12,440		12,968,700
6.00%, 01/15/19^b		9,175		9,633,750
6.85%, 07/15/18^a,b		9,200		9,844,000
Sabine Pass Liquefaction LLC
5.63%, 02/01/21 (Call 11/01/20)^a		32,385		33,923,288


Security	Principal (000s)		Value

5.63%, 04/15/23^a	$	16,000	$	16,602,650
5.63%, 04/15/23 (Call 01/15/23)^b		8,100		8,405,091
5.75%, 05/15/24^b		31,570		32,717,383
6.25%, 03/15/22^a,b		15,550		16,702,768
Targa Resources Partners LP/Targa Resources Partners Finance Corp.
4.25%, 11/15/23 (Call 05/15/18)		10,500		10,386,955
5.25%, 05/01/23 (Call 11/01/17)^a		8,300		8,705,128
6.88%, 02/01/21 (Call 02/01/16)		8,100		8,721,142
Tesoro Logistics LP/Tesoro Logistics Finance Corp.
5.50%, 10/15/19 (Call 09/15/19)^b		1,675		1,721,063
5.88%, 10/01/20 (Call 10/01/16)^a		10,550		10,792,578
6.13%, 10/15/21 (Call 10/15/16)		7,950		8,147,622
6.25%, 10/15/22 (Call 10/15/18)^b		3,030		3,129,075

				603,813,613
REAL ESTATE — 0.27%
CBRE Services Inc.
5.00%, 03/15/23 (Call 03/15/18)		12,340		12,648,500
Realogy Group LLC
7.63%, 01/15/20 (Call 01/15/16)^a,b		9,677		10,467,789
7.88%, 02/15/19 (Call 02/15/15)^a,b		950		998,687
Realogy Group LLC/Realogy Co- Issuer Corp.
4.50%, 04/15/19^a,b		7,300		7,309,125
Realogy Group LLC/Sunshine Group Florida Ltd. (The)
3.38%, 05/01/16^b		6,750		6,817,500

				38,241,601


SCHEDULESOF INVESTMENTS			59

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

REAL ESTATE INVESTMENT TRUSTS — 0.46%
Crown Castle International Corp.
4.88%, 04/15/22^a	$	14,479	$	14,587,593
5.25%, 01/15/23		28,075		28,706,687
iStar Financial Inc.
4.00%, 11/01/17 (Call 08/01/17)		9,400		9,329,500
5.00%, 07/01/19 (Call 07/01/16)		12,975		12,942,563
MPT Operating Partnership LP / MPT Finance Corp.
6.88%, 05/01/21 (Call 05/01/16)		175		188,125

				65,754,468
RETAIL — 2.99%
1011778 BC ULC/New Red Finance Inc.
6.00%, 04/01/22 (Call 10/01/17)^a,b		21,445		21,773,108
AmeriGas Finance LLC/AmeriGas Finance Corp.
6.75%, 05/20/20 (Call 05/20/16)		9,150		9,789,907
7.00%, 05/20/22 (Call 05/20/17)^a		15,410		16,580,707
AmeriGas Partners LP/AmeriGas Finance Corp.
6.25%, 08/20/19 (Call 08/20/15)^a		7,480		7,882,577
Best Buy Co. Inc.
5.00%, 08/01/18^a		7,706		7,937,180
5.50%, 03/15/21 (Call 12/15/20)^a		10,600		10,865,000
Burger King Corp.
9.88%, 10/15/18 (Call 12/12/14)		8,960		9,441,600
Claire’s Stores Inc.
8.88%, 03/15/19 (Call 03/15/15)^a		6,455		5,535,163
9.00%, 03/15/19 (Call 03/15/15)^b		18,250		18,615,000


Security	Principal (000s)		Value

Ferrellgas LP/Ferrellgas Finance Corp.
6.50%, 05/01/21 (Call 05/01/16)	$	8,200	$	8,261,360
6.75%, 01/15/22 (Call 11/15/16)		8,200		8,252,587
J.C. Penney Corp. Inc.
5.65%, 06/01/20^a		6,150		5,104,500
8.13%, 10/01/19^a		6,625		6,360,000
L Brands Inc.
5.63%, 02/15/22^a		17,033		18,310,475
5.63%, 10/15/23^a		7,500		8,062,500
6.63%, 04/01/21^a		18,020		20,407,650
6.90%, 07/15/17^a		10,512		11,720,880
7.00%, 05/01/20^a		6,110		6,934,850
8.50%, 06/15/19^a		8,050		9,599,625
Michaels Stores Inc.
5.88%, 12/15/20 (Call 12/15/16)^a,b		9,275		9,344,563
Neiman Marcus Group Ltd. LLC
8.00%, 10/15/21 (Call 10/15/16)^a,b		15,550		16,521,875
Party City Holdings Inc. Series WI
8.88%, 08/01/20 (Call 08/01/15)^a		11,650		12,669,375
Petco Animal Supplies Inc.
9.25%, 12/01/18 (Call 01/20/15)^a,b		9,250		9,654,688
QVC Inc.
3.13%, 04/01/19^a		5,730		5,757,691
4.38%, 03/15/23^a		13,025		12,941,645
4.45%, 02/15/25^b		10,000		9,685,378
4.85%, 04/01/24		9,275		9,378,798
5.13%, 07/02/22^a		8,865		9,298,982
7.38%, 10/15/20 (Call 04/15/15)^b		7,814		8,243,770
Rite Aid Corp.
6.75%, 06/15/21 (Call 06/15/16)^a		13,816		14,783,120
8.00%, 08/15/20 (Call 08/15/15)^a		9,950		10,733,563
9.25%, 03/15/20 (Call 03/15/16)^a		15,950		17,620,762


60		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Sally Holdings LLC/Sally Capital Inc.
5.75%, 06/01/22 (Call 06/01/17)^a	$	13,200	$	14,058,000
6.88%, 11/15/19 (Call 11/15/15)^a		13,900		14,873,000
Sears Holdings Corp.
6.63%, 10/15/18^a		14,995		13,907,862
Suburban Propane Partners LP/Suburban Energy Finance Corp.
5.50%, 06/01/24 (Call 06/01/19)^a		8,150		8,105,530
Toys R Us Inc.
10.38%, 08/15/17 (Call 02/15/15)^a		5,890		4,590,519
Toys R Us Property Co. II LLC
8.50%, 12/01/17 (Call 01/20/15)^a		12,225		12,255,563

				425,859,353
SEMICONDUCTORS — 1.20%
Advanced Micro Devices Inc.
6.75%, 03/01/19		11,700		11,056,500
7.00%, 07/01/24 (Call 07/01/19)^a		8,625		7,611,563
7.50%, 08/15/22^a		7,750		7,168,750
7.75%, 08/01/20 (Call 08/01/15)^a		7,950		7,612,125
Amkor Technology Inc.
6.38%, 10/01/22 (Call 10/01/16)^a		8,575		8,575,000
6.63%, 06/01/21 (Call 06/01/15)^a		6,125		6,201,563
Freescale Semiconductor Inc.
5.00%, 05/15/21 (Call 05/15/16)^b		8,000		7,900,000
6.00%, 01/15/22 (Call 11/15/16)^a,b		15,090		15,542,700
8.05%, 02/01/20 (Call 06/01/15)^a		1,061		1,119,355
10.75%, 08/01/20 (Call 08/01/15)^a		8,480		9,285,600


Security	Principal (000s)		Value

Micron Technology Inc.
5.50%, 02/01/25 (Call 08/01/19)^b	$	19,735	$	19,932,350
5.88%, 02/15/22 (Call 02/15/17)^a,b		8,850		9,292,500
NXP BV/NXP Funding LLC
3.50%, 09/15/16^a,b		7,500		7,593,750
3.75%, 06/01/18^b		11,775		11,833,875
5.75%, 02/15/21 (Call 02/15/17)^a,b		10,075		10,603,937
5.75%, 03/15/23 (Call 03/15/18)^a,b		7,150		7,543,250
Sensata Technologies BV
4.88%, 10/15/23^b		7,873		7,853,317
5.63%, 11/01/24^a,b		2,280		2,405,400
6.50%, 05/15/19 (Call 05/15/15)^a,b		11,450		11,979,562

				171,111,097
SHIPBUILDING — 0.15%
Huntington Ingalls Industries Inc.
6.88%, 03/15/18 (Call 03/15/15)		9,835		10,277,575
7.13%, 03/15/21 (Call 03/15/16)^a		9,860		10,599,500

				20,877,075
SOFTWARE — 2.42%
Activision Blizzard Inc.
5.63%, 09/15/21 (Call 09/15/16)^b		24,100		25,606,250
6.13%, 09/15/23 (Call 09/15/18)^a,b		12,875		13,937,187
Audatex North America Inc.
6.00%, 06/15/21 (Call 06/15/17)^b		22,675		23,978,812
BMC Software Inc.
8.13%, 07/15/21 (Call 07/15/16)^b		27,625		26,658,125
First Data Corp.
6.75%, 11/01/20 (Call 11/01/15)^a,b		23,602		25,372,150
7.38%, 06/15/19 (Call 06/15/15)^a,b		26,000		27,495,000


SCHEDULESOF INVESTMENTS			61

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

8.25%, 01/15/21 (Call 01/15/16)^b	$	31,952	$	34,588,040
8.88%, 08/15/20 (Call 08/15/15)^a,b		7,350		7,947,188
10.63%, 06/15/21 (Call 04/15/16)		8,946		10,287,900
11.25%, 01/15/21 (Call 01/15/16)		8,855		10,183,250
11.75%, 08/15/21 (Call 05/15/16)^a		26,985		31,603,950
12.63%, 01/15/21 (Call 01/15/16)^a		50,232		60,745,558
IMS Health Inc.
6.00%, 11/01/20 (Call 11/01/15)^b		1,050		1,089,375
Infor U.S. Inc.
9.38%, 04/01/19 (Call 04/01/15)		17,050		18,584,500
11.50%, 07/15/18 (Call 07/15/15)		9,320		10,310,250
Nuance Communications Inc.
5.38%, 08/15/20 (Call 08/15/16)^b		16,800		16,842,000

				345,229,535
STORAGE & WAREHOUSING — 0.20%
Algeco Scotsman Global Finance PLC
8.50%, 10/15/18 (Call 10/15/15)^a,b		15,750		16,340,625
10.75%, 10/15/19 (Call 10/15/16)^b		12,550		12,361,750

				28,702,375
TELECOMMUNICATIONS — 13.57%
Alcatel-Lucent USA Inc.
4.63%, 07/01/17^a,b		10,750		10,884,375
6.75%, 11/15/20 (Call 11/15/16)^a,b		16,480		17,015,600
8.88%, 01/01/20 (Call 07/01/16)^b		8,500		9,307,500
Altice Financing SA
6.50%, 01/15/22 (Call 12/15/16)^a,b		14,500		14,935,000


Security	Principal (000s)		Value

7.88%, 12/15/19 (Call 12/15/15)^b	$	7,550	$	8,050,188
Altice Finco SA
8.13%, 01/15/24 (Call 12/15/18)^a,b		6,800		7,123,000
9.88%, 12/15/20 (Call 12/15/16)^a,b		7,750		8,680,000
Altice SA
7.75%, 05/15/22 (Call 05/15/17)^a,b		46,700		48,859,875
Avaya Inc.
7.00%, 04/01/19 (Call 04/01/15)^a,b		16,540		16,250,550
10.50%, 03/01/21 (Call 03/01/17)^a,b		22,995		20,120,625
CenturyLink Inc.
5.80%, 03/15/22^a		21,209		22,428,517
6.00%, 04/01/17		8,600		9,266,500
6.45%, 06/15/21		20,400		22,338,000
Series V
5.63%, 04/01/20^a		16,755		17,718,412
Series W
6.75%, 12/01/23^a		12,900		14,319,000
Cincinnati Bell Inc.
8.38%, 10/15/20 (Call 10/15/15)^a		11,344		12,123,900
8.75%, 03/15/18 (Call 01/20/15)^a		2,149		2,224,215
CommScope Inc.
5.00%, 06/15/21 (Call 06/15/17)^b		9,650		9,650,000
5.50%, 06/15/24 (Call 06/15/19)^a,b		11,205		11,289,038
Embarq Corp.
7.08%, 06/01/16		15,250		16,490,438
Frontier Communications Corp.
6.25%, 09/15/21 (Call 06/15/21)^a		13,850		14,300,125
6.88%, 01/15/25 (Call 10/15/24)		12,175		12,372,844
7.13%, 03/15/19^a		6,650		7,348,250
7.13%, 01/15/23		15,240		16,211,550
7.63%, 04/15/24^a		12,600		13,497,750


62		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

8.13%, 10/01/18	$	10,580	$	11,981,850
8.25%, 04/15/17^a		9,070		10,181,075
8.50%, 04/15/20^a		18,930		21,816,825
8.75%, 04/15/22		9,110		10,522,050
9.25%, 07/01/21		7,450		8,865,500
Hughes Satellite Systems Corp.
6.50%, 06/15/19		17,820		19,379,250
7.63%, 06/15/21		15,090		16,787,625
Inmarsat Finance PLC
4.88%, 05/15/22 (Call 05/15/17)^a,b		14,925		14,925,000
Intelsat Jackson Holdings SA
5.50%, 08/01/23 (Call 08/01/18)^a		32,185		32,265,462
6.63%, 12/15/22 (Call 12/15/17)^a		20,100		21,155,250
7.25%, 04/01/19 (Call 04/01/15)^a		26,813		28,153,650
7.25%, 10/15/20 (Call 10/15/15)		39,770		42,454,475
7.50%, 04/01/21 (Call 04/01/16)		18,265		19,726,200
8.50%, 11/01/19 (Call 11/01/14)		2,025		2,106,000
Intelsat Luxembourg SA
6.75%, 06/01/18 (Call 06/01/15)		9,800		10,143,000
7.75%, 06/01/21 (Call 06/01/17)^a		32,925		34,324,312
8.13%, 06/01/23 (Call 06/01/18)^a		16,650		17,773,875
Koninklijke KPN NV
7.00%, 03/28/73 (Call 03/28/23)^b,d		10,350		10,841,625
Level 3 Communications Inc.
11.88%, 02/01/19 (Call 02/01/15)^a		8,550		9,223,313
Level 3 Escrow II Inc.
5.38%, 08/15/22 (Call 08/15/17)^a,b		15,150		15,415,125
Level 3 Financing Inc.
6.13%, 01/15/21 (Call 11/15/16)^a,b		10,525		11,077,563


Security	Principal (000s)		Value

7.00%, 06/01/20 (Call 06/01/16)	$	14,000	$	15,015,000
8.13%, 07/01/19 (Call 07/01/15)		17,950		19,206,500
8.63%, 07/15/20 (Call 01/15/16)		15,795		17,374,500
9.38%, 04/01/19 (Call 04/01/15)		7,912		8,455,950
Millicom International Cellular SA
4.75%, 05/22/20 (Call 05/22/17)^b		8,278		8,195,220
6.63%, 10/15/21 (Call 10/15/17)^b		16,010		17,130,700
Nokia OYJ
5.38%, 05/15/19^a		16,650		17,929,839
PAETEC Holding Corp.
9.88%, 12/01/18 (Call 12/01/14)		6,135		6,480,094
SBA Communications Corp.
4.88%, 07/15/22 (Call 07/15/17)^b		12,892		12,666,390
5.63%, 10/01/19 (Call 10/01/16)		7,300		7,628,500
SBA Telecommunications Inc.
5.75%, 07/15/20 (Call 07/15/16)^a		12,157		12,704,065
SoftBank Corp.
4.50%, 04/15/20^a,b		38,900		39,335,680
Sprint Communications Inc.
6.00%, 12/01/16^a		32,600		34,556,000
6.00%, 11/15/22^a		37,600		37,553,000
7.00%, 03/01/20^a,b		17,450		19,413,125
7.00%, 08/15/20		26,250		27,759,375
8.38%, 08/15/17^a		22,020		24,855,075
9.00%, 11/15/18^a,b		50,720		59,596,000
9.13%, 03/01/17^a		15,250		17,232,500
11.50%, 11/15/21		15,264		19,614,240
Sprint Corp.
7.13%, 06/15/24^a,b		41,600		42,744,000
7.25%, 09/15/21^b		37,100		39,326,000
7.88%, 09/15/23^a,b		68,000		73,270,000


SCHEDULESOF INVESTMENTS			63

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

T-Mobile USA Inc.
5.25%, 09/01/18 (Call 09/01/15)^a	$	6,650	$	6,916,000
6.00%, 03/01/23 (Call 09/01/18)		4,080		4,202,400
6.13%, 01/15/22 (Call 01/15/18)		18,500		19,332,500
6.25%, 04/01/21 (Call 04/01/17)		31,600		33,101,000
6.38%, 03/01/25 (Call 09/01/19)		26,170		26,955,100
6.46%, 04/28/19 (Call 04/28/15)^a		20,850		21,788,250
6.50%, 01/15/24 (Call 01/15/19)^a		17,675		18,514,562
6.54%, 04/28/20 (Call 04/28/16)^a		23,525		24,965,906
6.63%, 11/15/20 (Call 11/15/15)		15,020		15,883,650
6.63%, 04/28/21 (Call 04/28/17)^a		21,325		22,497,875
6.63%, 04/01/23 (Call 04/01/18)		30,483		32,311,980
6.73%, 04/28/22 (Call 04/28/17)		26,129		27,631,417
6.84%, 04/28/23 (Call 04/28/18)^a		9,825		10,439,063
Telecom Italia Capital SA
7.00%, 06/04/18^a		18,340		20,540,800
7.18%, 06/18/19		16,250		18,494,016
Telecom Italia SpA
5.30%, 05/30/24^a,b		28,050		28,470,750
tw telecom holdings Inc.
5.38%, 10/01/22 (Call 10/01/17)		13,450		14,694,125
UPCB Finance III Ltd.
6.63%, 07/01/20 (Call 07/01/15)^a,b		15,400		16,189,250
UPCB Finance V Ltd.
7.25%, 11/15/21 (Call 11/15/16)^b		12,070		13,322,262
UPCB Finance VI Ltd.
6.88%, 01/15/22 (Call 01/15/17)^b		13,260		14,453,400


Security	Principal (000s)		Value

Virgin Media Finance PLC
6.00%, 10/15/24 (Call 10/15/19)^a,b	$	6,250	$	6,515,625
6.38%, 04/15/23 (Call 04/15/18)^a,b		8,650		9,212,250
Virgin Media Secured Finance PLC
5.25%, 01/15/21		7,800		8,073,000
5.38%, 04/15/21 (Call 04/15/17)^b		14,250		14,748,750
5.50%, 01/15/25 (Call 01/15/19)^a,b		7,450		7,710,750
West Corp.
5.38%, 07/15/22 (Call 07/15/17)^a,b		16,775		16,271,750
7.88%, 01/15/19 (Call 11/15/14)		5,677		5,907,657
Wind Acquisition Finance SA
4.75%, 07/15/20 (Call 07/15/16)^a,b		33,350		32,432,875
6.50%, 04/30/20 (Call 04/30/16)^b		9,625		9,985,938
7.38%, 04/23/21 (Call 04/23/17)^a,b		43,300		42,001,000
Windstream Corp.
6.38%, 08/01/23 (Call 02/01/18)		11,850		11,938,875
7.50%, 06/01/22 (Call 06/01/17)^a		7,500		7,987,500
7.50%, 04/01/23 (Call 04/01/16)^a		9,450		9,946,125
7.75%, 10/15/20 (Call 10/15/15)		10,715		11,438,262
7.75%, 10/01/21 (Call 10/01/16)^a		16,600		17,762,000
7.88%, 11/01/17		18,827		20,992,105

				1,933,594,798
TRANSPORTATION — 0.31%
CHC Helicopter SA
9.25%, 10/15/20 (Call 10/15/15)		15,740		16,919,271


64		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

October 31, 2014


Security	Principal or Shares (000s)		Value
Florida East Coast Holdings Corp.
6.75%, 05/01/19 (Call 05/01/16)^a,b	$	15,681	$	16,190,633
Navios Maritime Holdings Inc./Navios Maritime Finance II U.S. Inc.
7.38%, 01/15/22 (Call 01/15/17)^b		11,100		11,155,500

				44,265,404

TOTAL CORPORATE BONDS & NOTES
(Cost: $13,919,705,700)				13,905,478,590

SHORT-TERM INVESTMENTS — 16.20%

MONEY MARKET FUNDS — 16.20%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^e,f,g		1,920,282		1,920,282,045
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		184,128		184,127,788
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		203,468		203,468,101

				2,307,877,934

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,307,877,934)				2,307,877,934

TOTAL INVESTMENTS IN SECURITIES —113.81%
(Cost: $16,227,583,634)				16,213,356,524
Other Assets, Less Liabilities — (13.81)%				(1,966,932,225	)

NET ASSETS — 100.00%			$	14,246,424,299

^a	All or a portion of this security represents a security on loan.

^b	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c	Payment-in-kind (PIK) security. Income may be paid in cash or additional securities at the issuer’s discretion.

^d	Variable rate security. Rate shown is as of report date.

^e	Affiliated issuer.

^f	The rate quoted is the annualized seven-day yield of the fund at period end.

^g	All or a portion of this security represents an investment of securities lending collateral.

See notes to financial statements.


SCHEDULESOF INVESTMENTS			65

Schedule of Investments (Unaudited)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

CORPORATE BONDS & NOTES — 98.01%

ADVERTISING — 0.22%
Omnicom Group Inc.
3.63%, 05/01/22	$	9,069	$	9,276,326
3.65%, 11/01/24 (Call 08/01/24)		1,635		1,628,020
4.45%, 08/15/20		14,195		15,356,361
WPP Finance 2010
3.75%, 09/19/24		4,000		3,984,620
4.75%, 11/21/21		8,875		9,702,308

				39,947,635
AEROSPACE & DEFENSE — 1.34%
Boeing Co. (The)
4.88%, 02/15/20^a		4,277		4,836,084
General Dynamics Corp.
1.00%, 11/15/17		1,900		1,886,156
2.25%, 11/15/22 (Call 08/15/22)		16,580		15,872,115
L-3 Communications Corp.
4.75%, 07/15/20		8,023		8,703,481
5.20%, 10/15/19		10,215		11,300,313
Lockheed Martin Corp.
3.35%, 09/15/21		18,839		19,547,258
4.07%, 12/15/42		10,000		9,799,873
4.25%, 11/15/19		1,872		2,046,670
Northrop Grumman Corp.
1.75%, 06/01/18		5,097		5,057,611
3.25%, 08/01/23		12,595		12,583,598
4.75%, 06/01/43		7,750		8,211,290
Raytheon Co.
2.50%, 12/15/22 (Call 09/15/22)		1,319		1,279,503
3.13%, 10/15/20		21,677		22,609,610
United Technologies Corp.
3.10%, 06/01/22^a		26,118		26,564,043
4.50%, 04/15/20		6,015		6,701,372
4.50%, 06/01/42		38,589		41,478,811
5.38%, 12/15/17		10,888		12,211,151
5.70%, 04/15/40		5,996		7,421,516
6.13%, 02/01/19		6,888		8,065,689
6.13%, 07/15/38		11,936		15,648,768

				241,824,912


Security	Principal (000s)		Value

AGRICULTURE — 1.54%
Altria Group Inc.
2.85%, 08/09/22	$	9,065	$	8,799,337
4.00%, 01/31/24^a		14,237		14,735,194
4.25%, 08/09/42^a		12,183		11,412,012
4.75%, 05/05/21^a		21,353		23,518,025
5.38%, 01/31/44^a		13,923		15,392,520
9.25%, 08/06/19		8,508		11,067,786
9.70%, 11/10/18		19,589		25,249,426
Archer-Daniels-Midland Co.
4.48%, 03/01/21		8,955		9,864,429
Lorillard Tobacco Co.
6.88%, 05/01/20^a		10,651		12,543,946
8.13%, 06/23/19		4,224		5,172,347
Philip Morris International Inc.
1.88%, 01/15/19		9,100		9,075,748
2.50%, 08/22/22		12,266		11,882,843
2.90%, 11/15/21^a		9,671		9,753,652
3.88%, 08/21/42^a		4,430		4,140,810
4.13%, 03/04/43^a		8,095		7,866,009
4.38%, 11/15/41		8,934		9,022,433
4.50%, 03/26/20^a		9,614		10,673,926
4.88%, 11/15/43^a		6,107		6,660,090
5.65%, 05/16/18^a		21,096		23,845,699
6.38%, 05/16/38		21,810		28,017,824
Reynolds American Inc.
3.25%, 11/01/22^a		6,149		5,999,828
4.75%, 11/01/42		14,045		13,695,308

				278,389,192
AUTO MANUFACTURERS — 0.87%
American Honda Finance Corp.
2.13%, 10/10/18		13,290		13,381,635
2.25%, 08/15/19		5,000		5,015,500
Daimler Finance North America LLC
8.50%, 01/18/31		16,394		24,822,490
Ford Motor Co.
4.75%, 01/15/43^a		19,748		20,207,254
7.45%, 07/16/31^a		18,512		24,804,308
Toyota Motor Credit Corp.
2.00%, 10/24/18		18,660		18,794,311
2.10%, 01/17/19^a		5,250		5,279,179
2.13%, 07/18/19		4,850		4,852,919


66		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

3.30%, 01/12/22	$	14,853	$	15,463,983
3.40%, 09/15/21		14,421		15,039,545
4.25%, 01/11/21		4,000		4,378,983
Series B
4.50%, 06/17/20		5,304		5,890,688

				157,930,795
AUTO PARTS & EQUIPMENT — 0.01%
Delphi Corp.
5.00%, 02/15/23 (Call 02/15/18)		1,000		1,070,000

				1,070,000
BANKS — 26.55%
Abbey National Treasury Services PLC/London
2.35%, 09/10/19		11,602		11,545,302
3.05%, 08/23/18		8,285		8,626,877
4.00%, 03/13/24		6,590		6,805,434
Australia & New Zealand Banking Group Ltd./New York NY
1.88%, 10/06/17^a		5,000		5,063,697
2.25%, 06/13/19^a		15,000		15,042,108
Bank of America Corp.
2.00%, 01/11/18^a		20,545		20,580,498
2.60%, 01/15/19		31,099		31,430,941
2.65%, 04/01/19^a		22,182		22,405,737
3.30%, 01/11/23		31,209		30,908,735
4.00%, 04/01/24^a		25,861		26,728,249
4.10%, 07/24/23		22,687		23,752,779
4.13%, 01/22/24^a		21,391		22,250,270
4.20%, 08/26/24^a		17,224		17,368,466
4.25%, 10/22/26		7,000		6,946,488
4.88%, 04/01/44		9,183		9,830,657
5.00%, 05/13/21		9,650		10,702,868
5.00%, 01/21/44		15,460		16,902,081
5.63%, 07/01/20		25,685		29,192,834
5.65%, 05/01/18		33,790		37,738,155
5.70%, 01/24/22		24,569		28,285,022
5.75%, 12/01/17		26,440		29,457,444
5.88%, 01/05/21		14,675		16,986,577
5.88%, 02/07/42		19,138		23,175,454
6.11%, 01/29/37		17,270		20,276,436
6.88%, 04/25/18		46,345		53,683,643


Security	Principal (000s)		Value

6.88%, 11/15/18^a	$	1,363	$	1,594,250
7.63%, 06/01/19^a		20,440		24,825,915
7.75%, 05/14/38		12,168		16,949,974
Bank of America N.A.
6.00%, 10/15/36		6,895		8,377,277
Bank of Montreal
1.45%, 04/09/18 (Call 03/09/18)^a		12,032		11,904,608
2.38%, 01/25/19 (Call 12/25/18)^a		9,450		9,554,196
2.55%, 11/06/22 (Call 10/06/22)		9,000		8,662,380
Bank of New York Mellon Corp. (The)
2.10%, 01/15/19 (Call 12/15/18)		5,668		5,678,804
2.20%, 05/15/19 (Call 04/15/19)^a		5,941		5,963,173
2.30%, 09/11/19 (Call 08/11/19)		12,430		12,464,437
3.55%, 09/23/21 (Call 08/23/21)		17,280		17,945,715
3.65%, 02/04/24 (Call 01/05/24)		6,000		6,189,136
Bank of Nova Scotia (The)
1.38%, 12/18/17 (Call 11/18/17)		3,500		3,485,665
1.45%, 04/25/18^a		22,053		21,823,649
2.05%, 10/30/18		13,500		13,534,000
2.05%, 06/05/19		20,245		20,144,330
2.80%, 07/21/21		3,000		3,002,792
4.38%, 01/13/21		3,424		3,776,643
Barclays Bank PLC
2.50%, 02/20/19^a		26,616		26,791,953
3.75%, 05/15/24		20,300		20,562,375
5.13%, 01/08/20		10,705		12,020,960
5.14%, 10/14/20^a		17,734		19,231,055
6.75%, 05/22/19		19,664		23,335,239
Barclays PLC
4.38%, 09/11/24		8,000		7,764,161
BNP Paribas SA
2.40%, 12/12/18		15,895		16,019,196
2.45%, 03/17/19^a		8,000		8,083,646


SCHEDULESOF INVESTMENTS			67

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

2.70%, 08/20/18	$	7,780	$	7,955,416
3.25%, 03/03/23^a		12,625		12,668,643
4.25%, 10/15/24		10,000		10,049,750
5.00%, 01/15/21		31,740		35,557,300
BPCE SA
2.50%, 12/10/18		24,750		24,949,807
2.50%, 07/15/19		4,250		4,260,689
4.00%, 04/15/24^a		9,650		9,974,046
Branch Banking & Trust Co.
2.30%, 10/15/18 (Call 09/15/18)^a		15,500		15,750,742
3.80%, 10/30/26 (Call 09/30/26)		7,300		7,399,160
Capital One Financial Corp.
2.45%, 04/24/19 (Call 03/24/19)		8,358		8,351,361
3.75%, 04/24/24 (Call 03/24/24)		19,360		19,626,998
4.75%, 07/15/21		10,547		11,590,864
Capital One N.A./Mclean VA
2.40%, 09/05/19 (Call 08/15/19)		11,525		11,514,146
2.95%, 07/23/21		25,240		25,351,818
Citigroup Inc.
1.75%, 05/01/18^a		12,659		12,561,774
2.50%, 09/26/18^a		13,869		14,030,302
2.50%, 07/29/19		11,736		11,792,586
2.55%, 04/08/19		17,860		18,025,250
3.38%, 03/01/23^a		17,648		17,653,993
3.50%, 05/15/23^a		22,089		21,625,074
3.75%, 06/16/24^a		15,706		15,940,927
3.88%, 10/25/23		16,955		17,448,752
4.00%, 08/05/24		7,000		6,998,742
4.05%, 07/30/22		21,225		21,826,820
4.50%, 01/14/22		31,927		34,572,104
5.30%, 05/06/44		5,500		5,871,506
5.38%, 08/09/20^a		23,266		26,446,388
5.50%, 09/13/25		18,984		21,068,815
5.88%, 02/22/33		5,800		6,514,059
5.88%, 01/30/42		10,168		12,464,867
6.13%, 11/21/17^a		35,293		39,815,565
6.13%, 05/15/18		26,443		30,035,223
6.13%, 08/25/36		19,020		22,331,867


Security	Principal (000s)		Value

6.63%, 06/15/32	$	7,250	$	8,820,014
6.68%, 09/13/43		7,500		9,562,282
6.88%, 03/05/38^a		5,584		7,430,238
8.13%, 07/15/39		31,940		48,370,514
8.50%, 05/22/19		23,159		29,051,303
Commonwealth Bank of Australia/New York NY
2.25%, 03/13/19		15,250		15,374,527
2.30%, 09/06/19		15,000		15,023,532
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands
3.88%, 02/08/22		32,808		34,774,046
3.95%, 11/09/22^a		16,500		16,740,869
4.50%, 01/11/21		9,843		10,841,062
4.63%, 12/01/23^a		22,100		23,229,562
5.25%, 05/24/41		14,915		17,290,948
5.75%, 12/01/43^a		7,620		8,873,056
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/NY
1.70%, 03/19/18		13,150		13,231,218
2.25%, 01/14/19		20,000		20,234,832
Credit Suisse/New York NY
2.30%, 05/28/19^a		23,320		23,295,770
3.00%, 10/29/21		9,665		9,573,590
3.63%, 09/09/24		30,000		30,159,771
4.38%, 08/05/20		12,380		13,490,279
5.30%, 08/13/19^a		13,402		15,150,595
5.40%, 01/14/20^a		13,297		14,910,274
6.00%, 02/15/18		12,008		13,448,960
Deutsche Bank AG/London
2.50%, 02/13/19^a		18,778		18,974,350
3.70%, 05/30/24^a		18,150		18,360,830
Discover Bank/Greenwood DE
2.00%, 02/21/18		17,500		17,553,384
3.20%, 08/09/21 (Call 07/09/21)		3,000		3,011,831
4.20%, 08/08/23		12,735		13,302,277
Fifth Third Bancorp
4.30%, 01/16/24 (Call 12/16/23)^a		520		543,022
8.25%, 03/01/38		14,273		21,269,577


68		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Fifth Third Bank/Cincinnati OH
2.38%, 04/25/19 (Call 03/25/19)	$	10,000	$	10,062,945
2.88%, 10/01/21 (Call 09/01/21)		7,000		6,952,413
Goldman Sachs Group Inc. (The)
2.38%, 01/22/18		26,342		26,632,031
2.63%, 01/31/19^a		11,250		11,352,454
2.90%, 07/19/18		32,759		33,606,538
3.63%, 01/22/23^a		21,123		21,247,621
3.85%, 07/08/24 (Call 04/08/24)		22,000		22,251,121
4.00%, 03/03/24		32,185		32,934,782
4.80%, 07/08/44 (Call 01/08/44)		18,644		19,329,091
5.25%, 07/27/21		39,970		44,657,082
5.38%, 03/15/20		14,037		15,762,522
5.75%, 01/24/22		35,263		40,589,600
5.95%, 01/18/18		23,331		26,103,878
5.95%, 01/15/27		5,951		6,834,421
6.00%, 06/15/20		15,695		18,115,743
6.13%, 02/15/33^a		29,582		36,173,219
6.15%, 04/01/18		33,580		37,901,363
6.25%, 02/01/41		23,637		29,377,371
6.45%, 05/01/36		7,859		9,330,738
6.75%, 10/01/37		50,059		61,458,360
7.50%, 02/15/19		19,575		23,432,040
HSBC Bank USA N.A./New York NY
4.88%, 08/24/20		8,510		9,346,465
5.63%, 08/15/35^a		1,493		1,776,220
5.88%, 11/01/34		4,000		4,904,193
HSBC Holdings PLC
4.00%, 03/30/22		24,223		25,846,106
4.25%, 03/14/24		11,900		12,242,201
4.88%, 01/14/22		11,245		12,545,317
5.10%, 04/05/21^a		27,344		30,910,680
5.25%, 03/14/44		19,625		21,395,870
6.10%, 01/14/42		6,637		8,581,132
6.50%, 05/02/36^a		22,425		27,899,373
6.50%, 09/15/37		27,854		34,745,837
6.80%, 06/01/38		17,690		22,808,184


Security	Principal (000s)		Value

HSBC USA Inc.
1.63%, 01/16/18	$	16,295	$	16,279,393
2.25%, 06/23/19^a		19,500		19,567,940
2.63%, 09/24/18		3,413		3,504,905
3.50%, 06/23/24		5,000		5,074,751
5.00%, 09/27/20^a		3,490		3,831,186
Intesa Sanpaolo SpA
3.88%, 01/16/18		13,890		14,514,244
3.88%, 01/15/19		15,150		15,788,644
5.25%, 01/12/24		7,825		8,524,981
JPMorgan Chase & Co.
1.63%, 05/15/18^a		22,446		22,230,507
1.80%, 01/25/18^a		11,555		11,548,764
2.20%, 10/22/19		10,000		9,896,573
2.35%, 01/28/19^a		9,750		9,841,916
3.20%, 01/25/23		32,158		31,929,019
3.25%, 09/23/22^a		27,988		28,073,271
3.38%, 05/01/23		21,176		20,683,878
3.63%, 05/13/24^a		6,635		6,713,971
3.88%, 02/01/24^a		11,248		11,644,909
3.88%, 09/10/24		12,545		12,500,643
4.25%, 10/15/20		15,975		17,182,758
4.35%, 08/15/21		22,135		23,896,286
4.40%, 07/22/20		18,938		20,552,580
4.50%, 01/24/22		32,580		35,538,385
4.63%, 05/10/21		24,642		27,058,621
4.85%, 02/01/44		20,400		22,104,691
4.95%, 03/25/20^a		7,675		8,535,424
5.40%, 01/06/42		11,150		12,971,036
5.50%, 10/15/40		10,312		12,022,095
5.60%, 07/15/41		11,440		13,611,383
5.63%, 08/16/43		13,973		15,886,302
6.00%, 01/15/18		35,877		40,405,470
6.30%, 04/23/19		28,601		33,304,975
6.40%, 05/15/38^a		16,684		21,513,451
JPMorgan Chase Bank N.A.
6.00%, 10/01/17		13,480		15,154,549
KeyBank N.A./Cleveland OH
1.65%, 02/01/18		10,500		10,474,969
KeyCorp
2.30%, 12/13/18 (Call 11/13/18)		8,800		8,825,395
5.10%, 03/24/21^a		9,901		11,106,984


SCHEDULESOF INVESTMENTS			69

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Lloyds Bank PLC
2.30%, 11/27/18	$	12,530	$	12,606,129
2.35%, 09/05/19		10,000		9,967,896
6.38%, 01/21/21		7,741		9,274,099
Manufacturers & Traders Trust Co.
2.30%, 01/30/19 (Call 12/30/18)		2,600		2,631,314
Morgan Stanley
2.13%, 04/25/18		9,192		9,207,978
2.38%, 07/23/19^a		26,360		26,155,040
2.50%, 01/24/19^a		37,705		37,971,484
3.70%, 10/23/24		15,000		14,996,277
3.75%, 02/25/23^a		33,556		34,085,349
4.10%, 05/22/23		18,029		18,192,956
4.35%, 09/08/26		23,704		23,823,738
4.88%, 11/01/22		11,020		11,758,962
5.00%, 11/24/25		26,962		28,641,849
5.50%, 01/26/20		22,306		25,117,430
5.50%, 07/24/20		14,035		15,891,113
5.50%, 07/28/21^a		30,599		34,868,451
5.63%, 09/23/19		32,562		36,936,402
5.75%, 01/25/21^a		33,534		38,521,445
5.95%, 12/28/17		7,085		7,971,042
6.38%, 07/24/42		27,899		36,002,078
6.63%, 04/01/18		35,712		40,915,281
7.25%, 04/01/32		2,362		3,203,995
7.30%, 05/13/19^a		33,810		40,420,714
Series F
3.88%, 04/29/24		18,612		18,915,195
MUFG Union Bank N.A.
2.63%, 09/26/18 (Call 08/26/18)		14,750		15,053,363
National Australia Bank Ltd./New York
2.30%, 07/25/18^a		7,500		7,624,816
3.00%, 01/20/23^a		9,759		9,650,114
Northern Trust Corp.
3.95%, 10/30/25		8,500		8,803,016
PNC Bank N.A.
2.20%, 01/28/19 (Call 12/29/18)^b		14,525		14,588,683
2.25%, 07/02/19 (Call 06/02/19)^b		5,250		5,250,317


Security	Principal (000s)		Value

2.70%, 11/01/22 (Call 10/01/22)^b	$	16,250	$	15,697,099
2.95%, 01/30/23 (Call 12/30/22)^a,b		5,800		5,626,091
3.80%, 07/25/23 (Call 06/25/23)^b		12,928		13,396,671
PNC Financial Services Group Inc. (The)
3.90%, 04/29/24 (Call 03/29/24)^b		9,815		9,937,250
PNC Funding Corp.
3.30%, 03/08/22 (Call 02/06/22)^b		7,069		7,188,685
4.38%, 08/11/20^b		3,773		4,119,370
5.13%, 02/08/20^b		3,965		4,473,962
Regions Financial Corp.
2.00%, 05/15/18 (Call 04/15/18)		15,000		14,875,125
Royal Bank of Canada
1.50%, 01/16/18^a		11,500		11,467,484
2.15%, 03/15/19^a		6,000		6,036,652
2.20%, 07/27/18		23,871		24,231,247
Royal Bank of Scotland Group PLC
6.40%, 10/21/19^a		16,912		19,746,301
Royal Bank of Scotland PLC (The)
5.63%, 08/24/20^a		6,059		6,954,424
6.13%, 01/11/21		14,899		17,466,150
Societe Generale SA
2.63%, 10/01/18^a		10,500		10,683,797
2.75%, 10/12/17^a		10,750		11,067,773
State Street Corp.
3.10%, 05/15/23^a		11,707		11,387,089
3.70%, 11/20/23		8,680		8,976,643
4.38%, 03/07/21		6,815		7,503,838
Sumitomo Mitsui Banking Corp.
1.50%, 01/18/18		6,750		6,675,071
2.25%, 07/11/19^a		5,000		4,974,884
2.45%, 01/10/19		11,335		11,435,424
3.20%, 07/18/22		6,099		6,151,031
SunTrust Banks Inc.
2.35%, 11/01/18 (Call 10/01/18)		3,185		3,204,805


70		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)			Value

2.50%, 05/01/19 (Call 04/01/19)	$	5,000		$	5,025,408
Svenska Handelsbanken AB
1.63%, 03/21/18^a		14,050	��		14,047,921
2.25%, 06/17/19		6,250			6,288,686
2.50%, 01/25/19		16,375			16,738,733
Toronto-Dominion Bank (The)
1.40%, 04/30/18		16,565			16,371,330
2.13%, 07/02/19^a		10,000			9,964,739
2.25%, 11/05/19		7,000			6,990,676
2.63%, 09/10/18		13,081			13,406,674
U.S. Bancorp/MN
1.95%, 11/15/18 (Call 10/15/18)		9,455			9,467,200
2.20%, 04/25/19 (Call 03/25/19)		16,260			16,313,946
2.95%, 07/15/22 (Call 06/15/22)		16,097			15,757,592
3.00%, 03/15/22 (Call 02/15/22)		3,087			3,102,557
3.60%, 09/11/24 (Call 08/11/24)		10,000			10,086,103
3.70%, 01/30/24 (Call 12/29/23)		4,500			4,671,225
4.13%, 05/24/21 (Call 04/23/21)		10,649			11,550,220
U.S. Bank N.A./Cincinnati
2.13%, 10/28/19 (Call 09/28/19)		18,235			18,164,513
UBS AG/Stamford CT
2.38%, 08/14/19		30,000			30,058,692
4.88%, 08/04/20		20,325			22,732,187
5.75%, 04/25/18		17,586			19,825,535
5.88%, 12/20/17		23,283			26,225,615
Wachovia Corp.
5.50%, 08/01/35		12,398			14,092,860
5.75%, 02/01/18		27,083			30,544,159
Wells Fargo & Co.
1.50%, 01/16/18		25,783			25,724,661
2.13%, 04/22/19^a		20,025			20,012,707
2.15%, 01/15/19		7,463			7,486,270
3.00%, 01/22/21		17,660			17,935,906
3.30%, 09/09/24^a		9,806			9,757,723


Security	Principal (000s)		Value

3.50%, 03/08/22	$	26,300	$	27,151,039
4.10%, 06/03/26^a		27,065		27,436,029
4.13%, 08/15/23^a		21,269		22,158,199
4.60%, 04/01/21		18,207		20,156,522
4.65%, 11/04/44		5,495		5,513,941
5.38%, 02/07/35		824		960,141
5.38%, 11/02/43^a		21,836		24,319,142
5.61%, 01/15/44^a		18,704		21,572,531
5.63%, 12/11/17		21,359		23,959,988
Series M
3.45%, 02/13/23^a		29,265		29,198,124
Wells Fargo Bank N.A.
5.85%, 02/01/37		10,000		12,453,978
6.00%, 11/15/17		11,272		12,764,724
6.60%, 01/15/38		18,634		25,312,802
Westpac Banking Corp.
1.60%, 01/12/18		7,000		7,010,382
2.25%, 07/30/18		5,795		5,890,193
2.25%, 01/17/19^a		16,170		16,342,036
4.88%, 11/19/19		18,140		20,361,051

				4,805,919,960
BEVERAGES — 2.91%
Anheuser-Busch InBev Finance Inc.
1.25%, 01/17/18^a		14,395		14,209,660
2.15%, 02/01/19^a		14,293		14,304,675
2.63%, 01/17/23		11,718		11,254,843
3.70%, 02/01/24^a		16,161		16,652,015
4.00%, 01/17/43^a		6,817		6,491,486
4.63%, 02/01/44^a		11,200		11,715,590
Anheuser-Busch InBev Worldwide Inc.
2.50%, 07/15/22		19,647		18,843,418
3.75%, 07/15/42		12,392		11,354,423
5.00%, 04/15/20		10,712		12,005,637
5.38%, 01/15/20		25,778		29,268,547
6.88%, 11/15/19^a		9,027		10,883,538
7.75%, 01/15/19		20,753		25,152,648
8.20%, 01/15/39		15,094		22,915,596
Bottling Group LLC
5.13%, 01/15/19^a		12,932		14,518,465
Coca-Cola Co. (The)
1.15%, 04/01/18		16,790		16,620,765
1.65%, 03/14/18^a		9,794		9,879,284


SCHEDULESOF INVESTMENTS			71

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

1.65%, 11/01/18	$	18,860	$	18,844,652
2.45%, 11/01/20^a		17,048		17,286,989
3.15%, 11/15/20		10,081		10,579,030
3.20%, 11/01/23^a		25,025		25,478,533
3.30%, 09/01/21		8,603		8,997,134
4.88%, 03/15/19		2,000		2,253,036
5.35%, 11/15/17^a		3,800		4,257,314
Diageo Capital PLC
2.63%, 04/29/23 (Call 01/29/23)^a		17,598		16,867,642
5.75%, 10/23/17		8,797		9,881,722
Diageo Investment Corp.
2.88%, 05/11/22		10,404		10,349,213
Pepsi Bottling Group Inc. (The) Series B
7.00%, 03/01/29		8,770		11,905,580
PepsiCo Inc.
2.25%, 01/07/19 (Call 12/07/18)^a		4,600		4,656,515
2.75%, 03/05/22		13,742		13,660,584
2.75%, 03/01/23		13,592		13,266,970
3.00%, 08/25/21^a		5,596		5,709,694
3.13%, 11/01/20		10,599		10,994,981
3.60%, 03/01/24 (Call 12/01/23)^a		13,000		13,435,044
4.00%, 03/05/42^a		8,748		8,410,029
4.50%, 01/15/20		11,840		13,131,196
4.88%, 11/01/40		12,115		13,247,624
5.00%, 06/01/18		14,719		16,438,833
5.50%, 01/15/40		10,495		12,400,337
7.90%, 11/01/18		15,940		19,564,330

				527,687,572
BIOTECHNOLOGY — 1.48%
Amgen Inc.
2.20%, 05/22/19 (Call 04/22/19)		15,415		15,313,898
3.45%, 10/01/20		7,585		7,832,564
3.63%, 05/15/22 (Call 02/15/22)		6,265		6,416,797
3.63%, 05/22/24 (Call 02/22/24)^a		8,900		8,941,077
3.88%, 11/15/21 (Call 08/15/21)		17,223		18,066,932


Security	Principal (000s)		Value

4.10%, 06/15/21 (Call 03/15/21)	$	13,821	$	14,751,775
5.15%, 11/15/41 (Call 05/15/41)		22,627		24,290,331
5.38%, 05/15/43 (Call 11/15/42)		10,450		11,595,397
5.65%, 06/15/42 (Call 12/15/41)		8,507		9,760,170
5.70%, 02/01/19		17,444		19,723,252
6.38%, 06/01/37^a		9,234		11,303,691
6.40%, 02/01/39		10,922		13,592,542
Celgene Corp.
3.25%, 08/15/22^a		8,531		8,556,668
3.63%, 05/15/24 (Call 02/15/24)		12,000		12,115,432
4.63%, 05/15/44 (Call 11/15/43)		10,000		10,252,904
Gilead Sciences Inc.
3.70%, 04/01/24 (Call 01/01/24)		30,487		31,479,571
4.40%, 12/01/21 (Call 09/01/21)		8,010		8,804,956
4.50%, 04/01/21 (Call 01/01/21)		4,434		4,895,469
4.80%, 04/01/44 (Call 10/01/43)		14,845		16,247,088
5.65%, 12/01/41 (Call 06/01/41)		11,850		14,375,733

				268,316,247
CHEMICALS — 2.17%
CF Industries Inc.
3.45%, 06/01/23^a		10,750		10,629,973
4.95%, 06/01/43^a		10,495		10,601,830
5.15%, 03/15/34^a		6,255		6,643,599
5.38%, 03/15/44		5,495		5,897,314
6.88%, 05/01/18		11,300		13,034,906
7.13%, 05/01/20		30		36,093
Dow Chemical Co. (The)
3.00%, 11/15/22 (Call 08/15/22)^a		2,350		2,295,106
3.50%, 10/01/24 (Call 07/01/24)		5,000		4,928,798


72		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

4.13%, 11/15/21 (Call 08/15/21)^a	$	13,408	$	14,197,726
4.25%, 11/15/20 (Call 08/15/20)		15,771		16,904,935
4.38%, 11/15/42 (Call 05/15/42)		11,250		10,664,095
5.25%, 11/15/41 (Call 05/15/41)		9,145		9,717,553
7.38%, 11/01/29		8,397		11,249,811
8.55%, 05/15/19		25,037		31,524,049
9.40%, 05/15/39		8,551		13,607,319
E.I. du Pont de Nemours & Co.
2.80%, 02/15/23		14,492		14,217,591
3.63%, 01/15/21^a		13,316		14,109,831
4.15%, 02/15/43^a		6,215		5,965,677
4.63%, 01/15/20^a		9,423		10,460,018
6.00%, 07/15/18		11,791		13,513,684
Eastman Chemical Co.
3.60%, 08/15/22 (Call 05/15/22)^a		6,288		6,375,646
Ecolab Inc.
4.35%, 12/08/21		15,053		16,389,481
5.50%, 12/08/41^a		7,698		9,018,349
LYB International Finance BV
4.00%, 07/15/23		2,390		2,475,714
4.88%, 03/15/44 (Call 09/15/43)^a		7,350		7,586,045
5.25%, 07/15/43		10,009		10,875,784
LyondellBasell Industries NV
5.00%, 04/15/19 (Call 01/15/19)		21,000		23,085,544
5.75%, 04/15/24 (Call 01/15/24)		16,620		19,339,860
6.00%, 11/15/21 (Call 08/17/21)		12,222		14,232,138
Monsanto Co.
3.38%, 07/15/24 (Call 04/15/24)^a		5,444		5,480,743
4.40%, 07/15/44 (Call 01/15/44)		16,000		16,060,930
4.70%, 07/15/64 (Call 01/15/64)^a		5,110		5,232,478


Security	Principal (000s)		Value

Mosaic Co. (The)
4.25%, 11/15/23 (Call 08/15/23)	$	10,100	$	10,581,624
Potash Corp. of Saskatchewan Inc.
3.63%, 03/15/24 (Call 12/15/23)^a		8,753		8,983,224
Rohm & Haas Co.
7.85%, 07/15/29		12,506		17,360,311

				393,277,779
COMMERCIAL SERVICES — 0.17%
Synchrony Financial
3.00%, 08/15/19 (Call 07/15/19)^a		10,500		10,601,371
3.75%, 08/15/21 (Call 06/15/21)		4,940		5,018,618
4.25%, 08/15/24 (Call 05/15/24)		14,895		15,119,777

				30,739,766
COMPUTERS — 2.70%
Apple Inc.
1.00%, 05/03/18		41,656		40,862,836
2.10%, 05/06/19^a		22,010		22,165,884
2.40%, 05/03/23^a		48,000		46,336,008
2.85%, 05/06/21^a		28,540		28,983,178
3.45%, 05/06/24		20,325		20,963,668
3.85%, 05/04/43		31,032		29,714,121
4.45%, 05/06/44^a		10,050		10,554,626
EMC Corp./MA
1.88%, 06/01/18		15,759		15,636,486
2.65%, 06/01/20		23,975		23,646,991
3.38%, 06/01/23 (Call 03/01/23)		17,395		17,033,895
Hewlett-Packard Co.
2.75%, 01/14/19^a		16,310		16,397,578
3.75%, 12/01/20		12,840		13,146,120
4.30%, 06/01/21^a		14,905		15,602,475
4.38%, 09/15/21^a		14,775		15,541,047
4.65%, 12/09/21^a		13,807		14,752,543
5.50%, 03/01/18		8,780		9,769,867
6.00%, 09/15/41		11,430		12,701,681


SCHEDULESOF INVESTMENTS			73

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

International Business Machines Corp.
1.25%, 02/08/18	$	1,970	$	1,953,671
1.63%, 05/15/20		10,655		10,263,062
1.88%, 08/01/22		7,440		6,863,986
1.95%, 02/12/19^a		6,640		6,650,668
3.38%, 08/01/23		20,725		20,946,306
3.63%, 02/12/24^a		16,495		16,911,556
4.00%, 06/20/42		15,206		14,588,141
7.63%, 10/15/18		21,548		26,147,119
8.38%, 11/01/19		4,987		6,421,318
Seagate HDD Cayman
3.75%, 11/15/18^c		7,000		7,218,750
4.75%, 06/01/23		10,750		11,126,250
4.75%, 01/01/25^a,c		5,000		5,062,500

				487,962,331
COSMETICS & PERSONAL CARE — 0.30%
Procter & Gamble Co. (The)
1.60%, 11/15/18^a		5,000		4,967,043
2.30%, 02/06/22		7,115		7,011,354
3.10%, 08/15/23		14,834		15,089,164
4.70%, 02/15/19		6,527		7,295,854
5.55%, 03/05/37		15,255		19,211,557

				53,574,972
DIVERSIFIED FINANCIAL SERVICES — 5.04%
American Express Co.
1.55%, 05/22/18		3,681		3,623,094
2.65%, 12/02/22^a		6,500		6,327,076
4.05%, 12/03/42		11,906		11,498,462
7.00%, 03/19/18		15,592		18,169,719
American Express Credit Corp.
2.13%, 07/27/18		12,163		12,261,586
2.13%, 03/18/19		15,645		15,647,001
2.25%, 08/15/19		20,250		20,298,740
Ameriprise Financial Inc.
4.00%, 10/15/23		10,000		10,525,512
Associates Corp. of North America
6.95%, 11/01/18		2,825		3,310,119
Bear Stearns Companies Inc. (The)
6.40%, 10/02/17		24,645		27,845,175
7.25%, 02/01/18		20,442		23,762,625


Security	Principal (000s)		Value

BP Capital Markets PLC
2.52%, 01/15/20	$	2,775	$	2,786,184
Capital One Bank USA N.A.
2.25%, 02/13/19 (Call 01/13/19)		13,970		13,911,368
3.38%, 02/15/23		9,580		9,474,947
CME Group Inc./IL
3.00%, 09/15/22		1,547		1,553,700
5.30%, 09/15/43 (Call 03/15/43)		10,518		12,333,784
Ford Motor Credit Co. LLC
2.38%, 01/16/18		20,660		20,860,691
2.38%, 03/12/19^a		11,500		11,480,428
2.88%, 10/01/18^a		3,175		3,249,224
3.66%, 09/08/24^a		8,000		7,970,400
4.25%, 09/20/22		12,995		13,662,531
4.38%, 08/06/23^a		10,029		10,639,766
5.00%, 05/15/18		16,121		17,622,610
5.75%, 02/01/21^a		13,670		15,645,899
5.88%, 08/02/21		29,758		34,322,464
8.13%, 01/15/20		12,508		15,632,371
General Electric Capital Corp.
1.63%, 04/02/18^a		19,190		19,266,921
2.30%, 01/14/19^a		21,594		21,985,067
3.10%, 01/09/23		28,954		29,075,358
3.15%, 09/07/22^a		22,877		23,149,236
3.45%, 05/15/24 (Call 02/13/24)^a		12,443		12,687,817
4.38%, 09/16/20		1,721		1,889,691
4.63%, 01/07/21		28,173		31,303,020
4.65%, 10/17/21^a		20,452		22,833,247
5.30%, 02/11/21		21,935		24,850,598
5.50%, 01/08/20^a		16,540		19,125,698
5.63%, 05/01/18		29,503		33,367,893
5.88%, 01/14/38		50,914		62,814,384
6.00%, 08/07/19		17,834		20,910,538
6.15%, 08/07/37		12,346		15,549,787
6.88%, 01/10/39		37,033		50,635,221
Series A
5.55%, 05/04/20		390		450,123
6.75%, 03/15/32		42,157		55,976,065
Goldman Sachs Capital I
6.35%, 02/15/34		13,958		16,324,940


74		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

HSBC Finance Corp.
6.68%, 01/15/21	$	29,691	$	34,928,558
Intercontinental Exchange Inc.
4.00%, 10/15/23		10,000		10,546,915
Jefferies Group LLC
5.13%, 04/13/18		16,279		17,637,144
6.88%, 04/15/21		5,452		6,354,996
Nomura Holdings Inc.
2.75%, 03/19/19^a		12,500		12,620,386
6.70%, 03/04/20		13,643		16,202,659
NYSE Euronext
2.00%, 10/05/17		6,705		6,830,667

				911,732,405
ELECTRIC — 1.16%
Berkshire Hathaway Energy Co.
5.15%, 11/15/43 (Call 05/15/43)		8,060		9,110,310
6.13%, 04/01/36		14,660		18,341,485
6.50%, 09/15/37^a		10,600		13,884,882
Consolidated Edison Co. of New York Inc.
4.45%, 03/15/44 (Call 09/15/43)		8,000		8,379,976
Duke Energy Carolinas LLC
5.30%, 02/15/40		5,420		6,496,943
Duke Energy Florida Inc.
6.40%, 06/15/38^a		11,116		15,143,488
Exelon Generation Co. LLC
5.60%, 06/15/42 (Call 12/15/41)^a		11,280		12,198,014
6.25%, 10/01/39		6,720		7,898,037
Georgia Power Co.
4.30%, 03/15/42^a		11,795		12,021,297
Nisource Finance Corp.
4.80%, 02/15/44 (Call 08/15/43)		5,713		6,054,597
6.40%, 03/15/18^a		9,398		10,801,958
Oncor Electric Delivery Co. LLC
7.00%, 09/01/22		8,588		10,932,431
Pacific Gas & Electric Co.
3.50%, 10/01/20 (Call 07/01/20)^a		1,386		1,455,910
5.40%, 01/15/40^a		9,525		11,106,288


Security	Principal (000s)		Value

5.80%, 03/01/37	$	7,610	$	9,213,565
6.05%, 03/01/34		34,334		42,716,444
8.25%, 10/15/18		5,383		6,571,593
Southern California Edison Co.
4.65%, 10/01/43 (Call 04/01/43)		7,500		8,349,734

				210,676,952
ELECTRONICS — 0.65%
Honeywell International Inc.
4.25%, 03/01/21^a		3,626		4,020,275
5.00%, 02/15/19		11,324		12,706,078
5.30%, 03/01/18		7,983		8,940,419
Koninklijke Philips NV
3.75%, 03/15/22		14,343		14,887,317
5.75%, 03/11/18		9,859		11,062,633
6.88%, 03/11/38		5,166		6,851,558
Thermo Fisher Scientific Inc.
2.40%, 02/01/19		14,192		14,237,453
3.15%, 01/15/23 (Call 10/15/22)		9,078		8,957,455
3.60%, 08/15/21 (Call 05/15/21)^a		16,256		16,844,990
4.15%, 02/01/24 (Call 11/01/23)		12,975		13,640,192
4.50%, 03/01/21^a		5,192		5,630,857

				117,779,227
ENGINEERING & CONSTRUCTION — 0.10%
ABB Finance USA Inc.
2.88%, 05/08/22^a		15,513		15,443,258
4.38%, 05/08/42		3,075		3,217,524

				18,660,782
ENVIRONMENTAL CONTROL — 0.09%
Republic Services Inc.
3.55%, 06/01/22 (Call 03/01/22)^a		6,835		7,005,794
5.00%, 03/01/20		8,007		8,911,833

				15,917,627
FOOD — 1.83%
ConAgra Foods Inc.
1.90%, 01/25/18		11,645		11,591,540
3.20%, 01/25/23 (Call 10/25/22)		9,497		9,206,672


SCHEDULESOF INVESTMENTS			75

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

General Mills Inc.
3.15%, 12/15/21 (Call 09/15/21)	$	16,624	$	16,936,584
5.65%, 02/15/19		8,850		10,105,888
Kellogg Co.
4.00%, 12/15/20		4,515		4,853,552
Series B
7.45%, 04/01/31		15,201		20,040,413
Kraft Foods Group Inc.
3.50%, 06/06/22		21,001		21,496,101
5.00%, 06/04/42^a		19,528		20,859,448
5.38%, 02/10/20		10,330		11,746,495
6.13%, 08/23/18		750		862,851
6.50%, 02/09/40		8,224		10,195,716
6.88%, 01/26/39		14,522		18,773,991
Kroger Co. (The)
6.15%, 01/15/20		7,627		8,878,141
Mondelez International Inc.
2.25%, 02/01/19 (Call 01/01/19)		6,734		6,719,097
4.00%, 02/01/24 (Call 11/01/23)^a		5,750		5,940,512
5.38%, 02/10/20^a		15,150		17,215,640
6.50%, 02/09/40		21,751		27,598,234
Sysco Corp.
2.35%, 10/02/19 (Call 09/02/19)		8,000		8,042,742
3.00%, 10/02/21 (Call 08/02/21)		4,000		4,051,222
3.50%, 10/02/24 (Call 07/02/24)^a		13,000		13,227,980
4.35%, 10/02/34 (Call 04/02/34)		2,225		2,294,706
4.50%, 10/02/44 (Call 04/02/44)^a		12,000		12,329,306
Tyson Foods Inc.
2.65%, 08/15/19 (Call 07/15/19)		13,000		13,137,415
3.95%, 08/15/24 (Call 05/15/24)		15,000		15,280,083
Unilever Capital Corp.
2.20%, 03/06/19		11,391		11,507,776
4.25%, 02/10/21		8,763		9,688,809


Security	Principal (000s)		Value

4.80%, 02/15/19	$	7,064	$	7,888,716
5.90%, 11/15/32		7,625		10,103,906

				330,573,536
FOREST PRODUCTS & PAPER — 0.35%
International Paper Co.
3.65%, 06/15/24 (Call 03/15/24)^a		6,000		5,940,266
4.75%, 02/15/22 (Call 11/15/21)		7,627		8,284,132
4.80%, 06/15/44 (Call 12/15/43)^a		6,400		6,328,334
7.30%, 11/15/39		3,050		3,962,289
7.50%, 08/15/21		10,669		13,346,708
7.95%, 06/15/18^a		21,528		25,764,743

				63,626,472
GAS — 0.05%
Sempra Energy
6.00%, 10/15/39		6,990		8,778,880

				8,778,880
HEALTH CARE — PRODUCTS — 0.72%
Baxter International Inc.
1.85%, 06/15/18		4,758		4,757,324
3.20%, 06/15/23 (Call 03/15/23)^a		16,457		16,522,311
Becton, Dickinson and Co.
3.13%, 11/08/21^a		12,875		12,902,761
Boston Scientific Corp.
6.00%, 01/15/20		9,053		10,388,036
Covidien International Finance SA
6.00%, 10/15/17		7,250		8,198,135
6.55%, 10/15/37		12,935		16,918,811
Medtronic Inc.
1.38%, 04/01/18		8,204		8,120,963
2.75%, 04/01/23 (Call 01/01/23)		8,924		8,618,207
3.63%, 03/15/24 (Call 12/15/23)^a		13,944		14,165,733
4.00%, 04/01/43 (Call 10/01/42)		8,000		7,577,860
4.45%, 03/15/20		13,593		14,833,197


76		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

St. Jude Medical Inc.
3.25%, 04/15/23 (Call 01/15/23)	$	7,468	$	7,446,621

				130,449,959
HEALTH CARE — SERVICES — 1.08%
Aetna Inc.
2.75%, 11/15/22 (Call 08/15/22)		12,080		11,659,652
3.95%, 09/01/20		18,315		19,613,120
6.63%, 06/15/36		7,798		10,054,228
Cigna Corp.
4.00%, 02/15/22 (Call 11/15/21)		5,005		5,271,242
5.38%, 02/15/42 (Call 08/15/41)		9,455		10,730,165
Humana Inc.
4.95%, 10/01/44 (Call 04/01/44)		5,000		5,190,641
UnitedHealth Group Inc.
2.88%, 03/15/22 (Call 12/15/21)^a		12,054		12,058,447
2.88%, 03/15/23		5,500		5,408,880
4.25%, 03/15/43 (Call 09/15/42)^a		12,080		12,003,621
5.80%, 03/15/36		4,000		4,873,302
6.00%, 02/15/18		10,334		11,760,218
6.88%, 02/15/38		12,310		16,904,458
WellPoint Inc.
2.25%, 08/15/19		10,125		10,027,357
3.13%, 05/15/22		8,808		8,734,230
3.30%, 01/15/23		13,350		13,225,683
3.50%, 08/15/24 (Call 05/15/24)		5,000		4,975,337
4.63%, 05/15/42		10,595		10,744,679
4.65%, 01/15/43		9,410		9,610,611
4.65%, 08/15/44 (Call 02/15/44)		5,000		5,085,729
5.85%, 01/15/36		2,950		3,474,134
6.38%, 06/15/37		3,470		4,297,149

				195,702,883
INSURANCE — 2.06%
Aflac Inc.
8.50%, 05/15/19^a		8,475		10,712,029


Security	Principal (000s)		Value

American International Group Inc.
2.30%, 07/16/19 (Call 06/16/19)	$	10,000	$	10,099,298
3.38%, 08/15/20		11,500		11,929,985
4.13%, 02/15/24^a		13,045		13,752,182
4.50%, 07/16/44 (Call 01/16/44)		18,030		18,297,392
4.88%, 06/01/22		6,394		7,116,485
5.85%, 01/16/18^a		24,509		27,568,902
6.25%, 05/01/36		9,750		12,373,580
6.40%, 12/15/20^a		14,357		17,204,613
Berkshire Hathaway Finance Corp.
3.00%, 05/15/22^a		10,267		10,341,145
4.25%, 01/15/21^a		6,817		7,489,732
5.40%, 05/15/18^a		18,171		20,521,310
5.75%, 01/15/40		6,350		7,731,093
Berkshire Hathaway Inc.
1.55%, 02/09/18		7,000		7,016,027
2.10%, 08/14/19^a		10,000		10,067,470
4.50%, 02/11/43^a		8,871		9,302,379
Chubb Corp. (The)
6.00%, 05/11/37		4,075		5,199,836
MetLife Inc.
3.60%, 04/10/24^a		8,525		8,712,061
4.13%, 08/13/42		4,658		4,505,111
4.75%, 02/08/21		8,494		9,410,915
4.88%, 11/13/43		10,110		11,038,702
5.70%, 06/15/35		3,905		4,588,091
5.88%, 02/06/41		12,850		15,696,186
6.38%, 06/15/34		7,875		9,997,976
7.72%, 02/15/19		11,653		14,243,004
Series A
6.82%, 08/15/18		7,624		8,961,638
Series D
4.37%, 09/15/23		11,975		12,885,418
Prudential Financial Inc.
4.60%, 05/15/44		10,000		10,127,229
7.38%, 06/15/19^a		10,082		12,262,303
Series D
6.00%, 12/01/17		11,184		12,619,322
6.63%, 12/01/37		9,050		11,670,955


SCHEDULESOF INVESTMENTS			77

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Travelers Companies Inc. (The)
5.35%, 11/01/40	$	6,950	$	8,181,737
6.25%, 06/15/37		8,585		11,085,775

				372,709,881
INTERNET — 0.54%
Amazon.com Inc.
1.20%, 11/29/17		2,755		2,728,129
2.50%, 11/29/22 (Call 08/29/22)		25,532		23,836,073
eBay Inc.
2.20%, 08/01/19 (Call 07/01/19)^a		7,500		7,427,902
2.60%, 07/15/22 (Call 04/15/22)		14,488		13,631,735
2.88%, 08/01/21 (Call 06/01/21)		11,048		10,806,329
3.45%, 08/01/24 (Call 05/01/24)^a		5,000		4,884,973
4.00%, 07/15/42 (Call 01/15/42)		9,470		8,138,285
Google Inc.
3.38%, 02/25/24		17,570		18,172,393
3.63%, 05/19/21		7,161		7,658,140

				97,283,959
MACHINERY — 0.69%
Caterpillar Financial Services Corp.
2.10%, 06/09/19		3,150		3,161,695
5.45%, 04/15/18		1,846		2,073,329
7.15%, 02/15/19		8,320		10,032,793
Caterpillar Inc.
3.40%, 05/15/24 (Call 02/15/24)^a		8,715		8,941,583
3.80%, 08/15/42		14,690		14,011,572
3.90%, 05/27/21		16,382		17,612,845
5.20%, 05/27/41^a		10,860		12,556,885
7.90%, 12/15/18		15,100		18,573,542
Deere & Co.
2.60%, 06/08/22 (Call 03/08/22)		11,871		11,652,148
3.90%, 06/09/42 (Call 12/09/41)^a		12,210		11,934,547
4.38%, 10/16/19		10,425		11,487,225


Security	Principal (000s)		Value

John Deere Capital Corp.
1.95%, 12/13/18	$	3,259	$	3,256,920

				125,295,084
MANUFACTURING — 0.77%
3M Co.
5.70%, 03/15/37		3,350		4,250,203
Danaher Corp.
5.40%, 03/01/19		2,919		3,332,747
Eaton Corp.
1.50%, 11/02/17		12,100		12,067,969
2.75%, 11/02/22		13,980		13,602,107
4.15%, 11/02/42^a		6,490		6,393,680
General Electric Co.
2.70%, 10/09/22		28,185		27,875,402
3.38%, 03/11/24^a		3,000		3,080,519
4.13%, 10/09/42		11,072		11,187,207
4.50%, 03/11/44		19,592		20,921,352
5.25%, 12/06/17		21,444		23,869,630
Illinois Tool Works Inc.
3.90%, 09/01/42 (Call 03/01/42)		12,902		12,478,141

				139,058,957
MEDIA — 6.18%
21st Century Fox America Inc.
3.00%, 09/15/22		19,685		19,417,888
4.50%, 02/15/21		6,607		7,213,466
6.15%, 03/01/37^a		8,275		10,169,560
6.15%, 02/15/41^a		15,112		18,620,497
6.20%, 12/15/34		12,879		16,068,527
6.40%, 12/15/35^a		7,700		9,807,593
6.65%, 11/15/37		8,827		11,402,619
Comcast Cable Communications Holdings Inc.
9.46%, 11/15/22		2,091		3,002,928
Comcast Corp.
2.85%, 01/15/23^a		5,885		5,812,470
3.13%, 07/15/22		15,767		16,042,554
3.38%, 02/15/25 (Call 11/15/24)		10,000		10,046,632
3.60%, 03/01/24^a		19,271		19,886,099
4.20%, 08/15/34 (Call 02/15/34)		2,000		2,018,510
4.25%, 01/15/33		11,745		11,955,879


78		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

4.65%, 07/15/42	$	13,247	$	13,992,389
4.75%, 03/01/44^a		13,506		14,501,951
5.15%, 03/01/20^a		16,368		18,598,304
5.65%, 06/15/35		12,002		14,345,238
5.70%, 05/15/18		9,035		10,245,976
5.88%, 02/15/18		12,685		14,391,762
6.30%, 11/15/17		6,771		7,726,586
6.40%, 05/15/38^a		1,800		2,309,033
6.40%, 03/01/40^a		8,229		10,714,587
6.45%, 03/15/37^a		17,954		23,149,500
6.50%, 11/15/35^a		2,150		2,809,857
6.55%, 07/01/39^a		12,853		16,938,557
6.95%, 08/15/37		25,528		34,615,562
7.05%, 03/15/33		2,110		2,875,463
DIRECTV Holdings LLC/DIRECTV Financing Co. Inc.
1.75%, 01/15/18		11,200		11,159,999
3.80%, 03/15/22^a		11,621		11,880,511
4.45%, 04/01/24 (Call 01/01/24)		17,420		18,212,283
4.60%, 02/15/21 (Call 11/15/20)		18,045		19,501,051
5.00%, 03/01/21		13,541		14,971,812
5.15%, 03/15/42		11,748		12,020,811
5.20%, 03/15/20^a		5,905		6,610,472
5.88%, 10/01/19^a		5,058		5,803,470
6.00%, 08/15/40 (Call 05/15/40)		17,125		19,263,056
6.38%, 03/01/41^a		11,165		13,132,273
Discovery Communications LLC
4.88%, 04/01/43		10,000		10,045,004
5.05%, 06/01/20		13,983		15,536,783
6.35%, 06/01/40		5,100		6,115,868
Historic TW Inc.
6.63%, 05/15/29		11,725		14,665,188
NBCUniversal Media LLC
2.88%, 01/15/23		14,111		13,966,915
4.38%, 04/01/21		25,315		27,847,295
4.45%, 01/15/43^a		18,407		18,803,224
5.15%, 04/30/20		20,659		23,450,064
5.95%, 04/01/41^a		17,289		21,390,212
6.40%, 04/30/40		5,925		7,649,597
Thomson Reuters Corp.
6.50%, 07/15/18		6,979		8,012,106


Security	Principal (000s)		Value

Time Warner Cable Inc.
4.00%, 09/01/21 (Call 06/01/21)^a	$	6,473	$	6,880,464
4.50%, 09/15/42 (Call 03/15/42)^a		16,860		16,694,961
5.00%, 02/01/20		17,223		19,182,135
5.50%, 09/01/41 (Call 03/01/41)		8,320		9,400,911
5.88%, 11/15/40 (Call 05/15/40)		11,725		13,821,623
6.55%, 05/01/37		8,443		10,618,803
6.75%, 07/01/18		26,053		30,322,784
6.75%, 06/15/39^a		18,619		24,105,103
7.30%, 07/01/38		23,147		31,546,961
8.25%, 04/01/19^a		24,586		30,537,331
8.75%, 02/14/19		10,354		13,009,631
Time Warner Entertainment Co. LP
8.38%, 03/15/23		13,713		18,428,156
Time Warner Inc.
3.55%, 06/01/24 (Call 03/01/24)^a		18,000		17,977,581
4.70%, 01/15/21		8,473		9,279,419
4.75%, 03/29/21		7,410		8,146,729
4.88%, 03/15/20		16,546		18,225,257
6.10%, 07/15/40		10,140		12,055,861
6.25%, 03/29/41		14,195		17,038,382
6.50%, 11/15/36^a		9,850		12,118,247
7.63%, 04/15/31		16,844		23,154,633
7.70%, 05/01/32		18,767		26,106,318
Viacom Inc.
4.25%, 09/01/23 (Call 06/01/23)		14,624		15,114,875
4.38%, 03/15/43		17,945		16,538,331
5.85%, 09/01/43 (Call 03/01/43)		14,388		16,268,022
6.88%, 04/30/36		5,813		7,321,297
Walt Disney Co. (The)
1.10%, 12/01/17		13,300		13,234,001
1.85%, 05/30/19		8,188		8,149,516
2.35%, 12/01/22		12,899		12,488,799
2.75%, 08/16/21^a		12,250		12,387,439

				1,118,871,551


SCHEDULESOF INVESTMENTS			79

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

METAL FABRICATE & HARDWARE — 0.12%
Precision Castparts Corp.
1.25%, 01/15/18	$	15,849	$	15,737,835
2.50%, 01/15/23 (Call 10/15/22)		5,940		5,771,940

				21,509,775
MINING — 2.61%
Barrick Gold Corp.
3.85%, 04/01/22^a		14,778		14,111,857
4.10%, 05/01/23^a		17,360		16,650,271
5.25%, 04/01/42		1,450		1,317,202
6.95%, 04/01/19^a		3,094		3,574,025
Barrick North America Finance LLC
4.40%, 05/30/21		15,739		16,049,863
5.70%, 05/30/41		17,374		16,581,827
5.75%, 05/01/43^a		11,784		11,365,963
Barrick PD Australia Finance Pty Ltd.
5.95%, 10/15/39		2,250		2,213,131
BHP Billiton Finance USA Ltd.
2.88%, 02/24/22^a		8,068		8,081,412
3.25%, 11/21/21		6,569		6,764,966
3.85%, 09/30/23		20,260		21,176,121
4.13%, 02/24/42^a		17,660		17,343,838
5.00%, 09/30/43		20,499		22,888,376
6.50%, 04/01/19^a		14,658		17,359,239
Freeport-McMoRan Inc.
2.38%, 03/15/18		15,737		15,779,565
3.10%, 03/15/20^a		10,530		10,486,448
3.55%, 03/01/22 (Call 12/01/21)		23,683		23,066,489
3.88%, 03/15/23 (Call 12/15/22)^a		22,517		22,191,060
5.45%, 03/15/43 (Call 09/15/42)^a		15,145		15,582,793
Goldcorp Inc.
3.70%, 03/15/23 (Call 12/15/22)^a		1,000		965,845
Newmont Mining Corp.
3.50%, 03/15/22 (Call 12/15/21)^a		14,862		13,806,140


Security	Principal (000s)		Value

4.88%, 03/15/42 (Call 09/15/41)^a	$	22,216	$	18,828,535
5.13%, 10/01/19^a		5,319		5,780,264
6.25%, 10/01/39		4,184		4,090,452
Rio Tinto Alcan Inc.
6.13%, 12/15/33^a		250		302,863
Rio Tinto Finance USA Ltd.
3.50%, 11/02/20^a		152		157,539
3.75%, 09/20/21		18,980		19,763,762
4.13%, 05/20/21		7,955		8,449,921
5.20%, 11/02/40		15,470		16,848,833
6.50%, 07/15/18		15,419		17,860,619
7.13%, 07/15/28		3,400		4,394,088
9.00%, 05/01/19		14,239		18,405,729
Rio Tinto Finance USA PLC
2.25%, 12/14/18 (Call 11/14/18)		15,714		15,799,882
2.88%, 08/21/22 (Call 05/21/22)^a		17,056		16,590,011
3.50%, 03/22/22 (Call 12/22/21)		12,321		12,563,920
4.13%, 08/21/42 (Call 02/21/42)^a		15,121		14,137,476
Teck Resources Ltd.
3.75%, 02/01/23 (Call 11/01/22)^a		9,180		8,633,697
6.25%, 07/15/41 (Call 01/15/41)		12,075		12,195,257

				472,159,279
OFFICE & BUSINESS EQUIPMENT — 0.12%
Xerox Corp.
4.50%, 05/15/21^a		14,166		15,079,288
6.35%, 05/15/18^a		6,622		7,555,033

				22,634,321
OIL & GAS — 8.70%
Anadarko Finance Co.
7.50%, 05/01/31		5,000		6,712,333
Anadarko Petroleum Corp.
6.20%, 03/15/40		10,620		12,822,480
6.45%, 09/15/36		23,542		29,124,255
Apache Corp.
3.25%, 04/15/22 (Call 01/15/22)^a		7,083		7,150,342


80		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

4.25%, 01/15/44 (Call 07/15/43)	$	1,970	$	1,835,200
4.75%, 04/15/43 (Call 10/15/42)^a		24,510		24,425,073
5.10%, 09/01/40 (Call 03/01/40)		10,585		10,996,204
6.00%, 01/15/37		12,085		14,105,998
BP Capital Markets PLC
1.38%, 11/06/17^a		10,150		10,100,340
1.38%, 05/10/18^a		10,809		10,641,456
2.24%, 09/26/18		6,201		6,252,840
2.24%, 05/10/19^a		7,835		7,822,979
2.50%, 11/06/22		5,000		4,742,263
2.75%, 05/10/23		14,985		14,360,574
3.25%, 05/06/22^a		22,410		22,445,952
3.56%, 11/01/21		14,629		15,083,903
3.81%, 02/10/24^a		15,759		16,118,545
3.99%, 09/26/23^a		2,940		3,066,831
4.50%, 10/01/20		16,186		17,651,581
4.74%, 03/11/21^a		14,545		16,044,069
4.75%, 03/10/19^a		8,587		9,461,643
Canadian Natural Resources Ltd.
6.25%, 03/15/38		14,779		17,764,204
Cenovus Energy Inc.
4.45%, 09/15/42 (Call 03/15/42)		11,907		11,477,359
5.70%, 10/15/19		4,742		5,404,523
6.75%, 11/15/39^a		13,485		17,085,080
Chevron Corp.
1.10%, 12/05/17 (Call 11/05/17)		25,301		25,183,808
1.72%, 06/24/18 (Call 05/24/18)		6,484		6,525,230
2.36%, 12/05/22 (Call 09/05/22)		24,958		24,141,756
2.43%, 06/24/20 (Call 05/24/20)		7,859		7,963,525
3.19%, 06/24/23 (Call 03/24/23)		20,485		20,965,375
4.95%, 03/03/19		18,069		20,302,612
ConocoPhillips
5.75%, 02/01/19		18,858		21,659,695


Security	Principal (000s)		Value

6.00%, 01/15/20	$	10,988	$	12,926,839
6.50%, 02/01/39		37,727		50,048,548
ConocoPhillips Co.
1.05%, 12/15/17 (Call 11/15/17)		6,690		6,613,888
2.40%, 12/15/22 (Call 09/15/22)^a		18,500		17,864,488
ConocoPhillips Holding Co.
6.95%, 04/15/29		5,263		7,130,102
Continental Resources Inc./OK
3.80%, 06/01/24 (Call 03/01/24)^a		8,350		8,258,767
4.50%, 04/15/23 (Call 01/15/23)^a		15,000		15,687,178
5.00%, 09/15/22 (Call 03/15/17)^a		20,339		21,566,019
Devon Energy Corp.
2.25%, 12/15/18 (Call 11/15/18)		6,150		6,156,255
3.25%, 05/15/22 (Call 02/15/22)^a		10,856		10,806,503
4.75%, 05/15/42 (Call 11/15/41)^a		12,658		12,898,189
5.60%, 07/15/41 (Call 01/15/41)		10,323		11,715,522
7.95%, 04/15/32		9,310		13,112,151
Devon Financing Corp. LLC
7.88%, 09/30/31^a		9,460		13,230,794
Encana Corp.
6.50%, 08/15/34		13,085		16,082,729
6.50%, 02/01/38		4,400		5,432,656
Ensco PLC
4.70%, 03/15/21		13,425		14,135,965
EOG Resources Inc.
2.63%, 03/15/23 (Call 12/15/22)		16,325		15,743,138
4.10%, 02/01/21		5,821		6,290,556
5.63%, 06/01/19		6,669		7,635,936
Exxon Mobil Corp.
1.82%, 03/15/19 (Call 02/15/19)^a		15,395		15,448,074
3.18%, 03/15/24 (Call 12/15/23)^a		10,000		10,320,708


SCHEDULESOF INVESTMENTS			81

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas Inc.
6.50%, 11/15/20 (Call 11/15/15)^a	$	6,029	$	6,593,517
6.88%, 02/15/23 (Call 02/15/18)		14,523		16,435,361
Hess Corp.
5.60%, 02/15/41^a		8,268		9,378,400
6.00%, 01/15/40		8,965		10,545,596
7.30%, 08/15/31		10,318		13,584,709
8.13%, 02/15/19		10,322		12,651,770
Husky Energy Inc.
4.00%, 04/15/24 (Call 01/15/24)^a		12,000		12,312,596
Marathon Oil Corp.
2.80%, 11/01/22 (Call 08/01/22)		4,275		4,148,953
5.90%, 03/15/18		9,530		10,760,740
6.60%, 10/01/37		8,450		10,603,339
Marathon Petroleum Corp.
3.63%, 09/15/24 (Call 06/15/24)		7,220		7,178,515
4.75%, 09/15/44 (Call 03/15/44)		7,285		7,256,459
5.13%, 03/01/21		13,685		15,286,584
6.50%, 03/01/41 (Call 09/01/40)		11,566		14,029,005
Nabors Industries Inc.
6.15%, 02/15/18		12,045		13,510,739
Nexen Energy ULC
5.88%, 03/10/35		4,798		5,559,344
6.40%, 05/15/37^a		13,638		16,953,806
Noble Energy Inc.
4.15%, 12/15/21 (Call 09/15/21)^a		9,010		9,589,033
5.25%, 11/15/43 (Call 05/15/43)		9,765		10,432,795
6.00%, 03/01/41 (Call 09/01/40)		6,965		8,101,797
8.25%, 03/01/19		10,502		12,948,957
Occidental Petroleum Corp.
2.70%, 02/15/23 (Call 11/15/22)		9,556		9,225,994


Security	Principal (000s)		Value

3.13%, 02/15/22 (Call 11/15/21)	$	6,096	$	6,123,700
Series 1
4.10%, 02/01/21 (Call 11/01/20)		16,170		17,407,626
Petro-Canada
6.80%, 05/15/38		10,385		13,886,866
Phillips 66
4.30%, 04/01/22^a		13,844		14,762,095
5.88%, 05/01/42		17,240		20,490,412
Pride International Inc.
6.88%, 08/15/20		9,430		11,014,579
Shell International Finance BV
1.90%, 08/10/18		18,710		18,886,041
2.00%, 11/15/18^a		21,150		21,398,115
2.25%, 01/06/23^a		10,989		10,423,370
2.38%, 08/21/22		5,763		5,569,273
3.40%, 08/12/23^a		18,708		19,172,037
4.30%, 09/22/19		23,271		25,624,801
4.38%, 03/25/20		5,375		5,944,623
4.55%, 08/12/43^a		19,201		20,673,137
5.50%, 03/25/40		16,800		20,249,809
6.38%, 12/15/38		13,195		17,497,061
Statoil ASA
2.45%, 01/17/23		15,503		14,897,702
2.65%, 01/15/24		14,504		13,936,005
2.90%, 11/08/20^a		6,377		6,530,711
3.15%, 01/23/22		5,892		6,019,106
3.70%, 03/01/24^a		7,600		7,865,813
3.95%, 05/15/43		11,957		11,506,476
4.80%, 11/08/43^a		6,361		7,024,457
5.10%, 08/17/40		5,755		6,522,617
5.25%, 04/15/19		13,348		15,136,038
Series FXD
1.95%, 11/08/18		11,905		11,959,411
Suncor Energy Inc.
6.10%, 06/01/18		8,125		9,306,673
6.50%, 06/15/38^a		6,603		8,629,038
6.85%, 06/01/39^a		14,320		19,439,304
Total Capital Canada Ltd.
1.45%, 01/15/18		2,203		2,196,299
2.75%, 07/15/23		11,487		11,133,591
Total Capital International SA
2.13%, 01/10/19^a		7,000		7,047,188


82		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

2.70%, 01/25/23	$	13,459	$	13,041,670
2.88%, 02/17/22^a		15,762		15,742,717
3.70%, 01/15/24		12,250		12,622,391
3.75%, 04/10/24^a		12,206		12,751,021
Total Capital SA
2.13%, 08/10/18		14,337		14,510,419
4.45%, 06/24/20		16,406		18,220,256
Transocean Inc.
2.50%, 10/15/17		2,861		2,818,128
3.80%, 10/15/22 (Call 07/15/22)^a		4,650		4,194,072
6.00%, 03/15/18^a		16,003		17,065,625
6.38%, 12/15/21^a		7,840		8,199,774
6.50%, 11/15/20^a		11,882		12,229,987
6.80%, 03/15/38^a		14,772		13,864,952
Valero Energy Corp.
6.13%, 02/01/20^a		10,324		11,959,815
6.63%, 06/15/37^a		15,673		19,132,667
7.50%, 04/15/32		8,281		10,770,225
9.38%, 03/15/19^a		2,279		2,907,720

				1,573,936,455
OIL & GAS SERVICES — 0.87%
Baker Hughes Inc.
3.20%, 08/15/21 (Call 05/15/21)		1,950		2,004,641
5.13%, 09/15/40		16,432		18,349,079
7.50%, 11/15/18		9,716		11,732,619
Halliburton Co.
3.50%, 08/01/23 (Call 05/01/23)		9,550		9,806,902
4.75%, 08/01/43 (Call 02/01/43)		6,150		6,565,247
6.15%, 09/15/19		11,036		12,938,611
6.70%, 09/15/38		7,395		9,781,380
7.45%, 09/15/39		10,660		15,250,991
National Oilwell Varco Inc.
2.60%, 12/01/22 (Call 09/01/22)		14,103		13,501,747
3.95%, 12/01/42 (Call 06/01/42)		11,084		10,437,139
Schlumberger Investment SA
3.65%, 12/01/23 (Call 09/01/23)^a		14,695		15,315,700


Security	Principal (000s)		Value

Weatherford International Ltd./Bermuda
4.50%, 04/15/22 (Call 01/15/22)^a	$	6,895	$	7,087,465
5.13%, 09/15/20		8,670		9,481,044
9.63%, 03/01/19		11,620		14,797,812

				157,050,377
PHARMACEUTICALS — 4.90%
Abbott Laboratories
5.13%, 04/01/19		10,808		12,183,722
AbbVie Inc.
1.75%, 11/06/17^a		37,566		37,691,666
2.00%, 11/06/18^a		13,386		13,325,311
2.90%, 11/06/22		34,164		33,366,848
4.40%, 11/06/42		22,837		22,703,337
Actavis Funding SCS
3.85%, 06/15/24 (Call 03/15/24)^c		10,000		9,758,004
4.85%, 06/15/44 (Call 12/15/43)^a,c		15,085		14,211,499
Actavis Inc.
3.25%, 10/01/22 (Call 07/01/22)^a		24,473		23,516,776
4.63%, 10/01/42 (Call 04/01/42)		16,219		14,916,193
AstraZeneca PLC
1.95%, 09/18/19		4,588		4,573,854
4.00%, 09/18/42		9,950		9,546,387
6.45%, 09/15/37^a		26,691		35,049,308
Bristol-Myers Squibb Co.
2.00%, 08/01/22		8,184		7,615,166
Eli Lilly & Co.
5.55%, 03/15/37		5,239		6,298,064
Express Scripts Holding Co.
2.25%, 06/15/19		10,264		10,216,171
3.50%, 06/15/24 (Call 03/15/24)		9,137		9,078,516
3.90%, 02/15/22		11,200		11,655,813
4.75%, 11/15/21		8,435		9,252,451
Forest Laboratories Inc.
4.38%, 02/01/19^c		3,500		3,663,395
4.88%, 02/15/21^c		10,250		10,865,028


SCHEDULESOF INVESTMENTS			83

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

GlaxoSmithKline Capital Inc.
2.80%, 03/18/23^a	$	14,835	$	14,537,828
5.65%, 05/15/18		27,919		31,621,068
6.38%, 05/15/38^a		23,131		30,331,796
GlaxoSmithKline Capital PLC
2.85%, 05/08/22		21,119		21,019,409
Johnson & Johnson
5.15%, 07/15/18		12,957		14,608,350
5.95%, 08/15/37		8,430		11,181,866
McKesson Corp.
2.28%, 03/15/19		11,562		11,536,476
3.80%, 03/15/24 (Call 12/15/23)		11,981		12,242,868
4.88%, 03/15/44 (Call 09/15/43)^a		7,604		8,140,488
Medco Health Solutions Inc.
7.13%, 03/15/18		17,907		20,872,539
Merck & Co. Inc.
1.10%, 01/31/18^a		7,005		6,952,725
1.30%, 05/18/18^a		13,818		13,742,479
2.40%, 09/15/22 (Call 06/15/22)		15,381		14,890,015
2.80%, 05/18/23		4,750		4,696,106
3.88%, 01/15/21 (Call 10/15/20)		16,439		17,654,636
4.15%, 05/18/43^a		7,750		8,091,859
6.50%, 12/01/33		5,672		7,795,254
6.55%, 09/15/37		13,060		18,163,100
Merck Sharp & Dohme Corp.
5.00%, 06/30/19		13,330		14,998,816
Novartis Capital Corp.
2.40%, 09/21/22		20,644		20,185,939
3.40%, 05/06/24		22,275		22,907,768
4.40%, 04/24/20		2,182		2,423,691
4.40%, 05/06/44		20,123		21,683,078
Novartis Securities Investment Ltd.
5.13%, 02/10/19		20,973		23,611,005
Pfizer Inc.
1.50%, 06/15/18^a		13,895		13,859,757
2.10%, 05/15/19		9,119		9,175,201
3.00%, 06/15/23^a		18,860		18,791,010
3.40%, 05/15/24^a		7,500		7,612,888


Security	Principal (000s)		Value

4.30%, 06/15/43	$	6,891	$	7,048,931
4.40%, 05/15/44^a		3,460		3,553,510
6.20%, 03/15/19		21,428		25,037,699
7.20%, 03/15/39		23,346		33,142,946
Sanofi
1.25%, 04/10/18^a		12,190		12,055,906
4.00%, 03/29/21		24,001		25,877,074
Wyeth LLC
5.95%, 04/01/37		18,822		23,234,810
6.50%, 02/01/34		5,319		6,976,427
Zoetis Inc.
1.88%, 02/01/18		3,200		3,176,722
3.25%, 02/01/23 (Call 11/01/22)		16,960		16,819,293
4.70%, 02/01/43 (Call 08/01/42)^a		7,875		8,159,978

				887,898,820
PIPELINES — 2.22%
Energy Transfer Partners LP
3.60%, 02/01/23 (Call 11/01/22)		9,344		9,159,760
4.65%, 06/01/21 (Call 03/01/21)		7,763		8,277,694
5.20%, 02/01/22 (Call 11/01/21)^a		6,550		7,177,806
6.50%, 02/01/42 (Call 08/01/41)		9,680		11,246,391
Enterprise Products Operating LLC
2.55%, 10/15/19 (Call 09/15/19)		8,000		8,020,778
3.35%, 03/15/23 (Call 12/15/22)		11,617		11,538,345
3.75%, 02/15/25 (Call 11/15/24)		7,425		7,464,235
3.90%, 02/15/24 (Call 11/15/23)^a		7,240		7,429,608
4.45%, 02/15/43 (Call 08/15/42)		7,405		7,165,434
4.85%, 08/15/42 (Call 02/15/42)		6,595		6,791,090
4.85%, 03/15/44 (Call 09/15/43)		17,200		17,734,905


84		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

5.10%, 02/15/45 (Call 08/15/44)	$	12,820	$	13,698,735
5.20%, 09/01/20		11,308		12,707,245
5.95%, 02/01/41		7,210		8,574,844
Kinder Morgan Energy Partners LP
2.65%, 02/01/19^a		8,342		8,347,175
3.50%, 03/01/21 (Call 01/01/21)		7,451		7,440,548
3.95%, 09/01/22 (Call 06/01/22)		11,254		11,233,892
5.50%, 03/01/44 (Call 09/01/43)		9,150		9,120,798
5.95%, 02/15/18		10,870		12,121,920
6.95%, 01/15/38		13,269		15,446,930
ONEOK Partners LP
3.38%, 10/01/22 (Call 07/01/22)		10,946		10,695,749
Plains All American Pipeline LP/PAA Finance Corp.
3.60%, 11/01/24 (Call 08/01/24)		5,000		4,969,815
3.65%, 06/01/22 (Call 03/01/22)		7,848		8,022,814
Spectra Energy Partners LP
4.75%, 03/15/24 (Call 12/15/23)		10,500		11,407,601
TransCanada PipeLines Ltd.
2.50%, 08/01/22		8,000		7,594,272
3.80%, 10/01/20		9,442		9,904,734
4.63%, 03/01/34 (Call 12/01/33)		11,500		12,072,738
6.10%, 06/01/40		8,850		10,642,237
6.20%, 10/15/37		8,375		10,125,308
6.50%, 08/15/18		8,737		10,107,065
7.13%, 01/15/19		8,197		9,738,661
7.63%, 01/15/39^a		13,010		18,132,809
Williams Companies Inc. (The)
3.70%, 01/15/23 (Call 10/15/22)		3,000		2,826,305
4.55%, 06/24/24 (Call 03/24/24)		16,520		16,230,542


Security	Principal (000s)		Value

Williams Partners LP
3.35%, 08/15/22 (Call 05/15/22)	$	12,800	$	12,558,356
3.90%, 01/15/25 (Call 10/15/24)		5,125		5,087,008
4.30%, 03/04/24 (Call 12/04/23)		6,420		6,617,500
5.25%, 03/15/20		16,468		18,296,450
6.30%, 04/15/40		14,708		17,059,008

				402,787,105
REAL ESTATE INVESTMENT TRUSTS — 1.02%
American Tower Corp.
3.40%, 02/15/19^a		11,764		12,018,040
3.50%, 01/31/23		7,356		7,043,936
4.50%, 01/15/18		13,376		14,276,256
4.70%, 03/15/22		2,100		2,208,802
5.00%, 02/15/24^a		7,203		7,596,753
Boston Properties LP
3.70%, 11/15/18 (Call 08/15/18)		8,820		9,378,855
3.85%, 02/01/23 (Call 11/01/22)		15,583		16,060,781
4.13%, 05/15/21 (Call 02/15/21)		4,226		4,489,674
ERP Operating LP
4.50%, 07/01/44 (Call 01/01/44)		6,000		6,037,652
4.63%, 12/15/21 (Call 09/15/21)		12,685		13,995,213
HCP Inc.
2.63%, 02/01/20 (Call 11/01/19)		5,575		5,524,686
3.88%, 08/15/24 (Call 05/15/24)		5,000		4,994,437
4.25%, 11/15/23 (Call 08/15/23)		8,000		8,305,770
5.38%, 02/01/21 (Call 11/03/20)		14,750		16,542,447
Simon Property Group LP
3.38%, 10/01/24		9,725		9,788,773
4.38%, 03/01/21 (Call 12/01/20)		10,179		11,190,710


SCHEDULESOF INVESTMENTS			85

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

5.65%, 02/01/20 (Call 11/01/19)	$	15,220	$	17,707,383
6.13%, 05/30/18		7,499		8,601,628
Weyerhaeuser Co.
7.38%, 03/15/32		6,547		8,562,802

				184,324,598
RETAIL — 4.02%
Costco Wholesale Corp.
1.13%, 12/15/17		9,950		9,888,045
1.70%, 12/15/19		10,038		9,826,957
CVS Health Corp.
2.25%, 12/05/18 (Call 11/05/18)		12,600		12,706,857
2.25%, 08/12/19 (Call 07/12/19)		5,000		4,989,799
4.00%, 12/05/23 (Call 09/05/23)		25,638		27,009,446
5.30%, 12/05/43 (Call 06/05/43)		7,000		8,029,392
6.13%, 09/15/39^a		5,345		6,722,160
Home Depot Inc. (The)
2.00%, 06/15/19 (Call 05/15/19)		10,000		9,998,160
2.25%, 09/10/18 (Call 08/10/18)		12,301		12,528,668
2.70%, 04/01/23 (Call 01/01/23)		7,313		7,196,558
3.75%, 02/15/24 (Call 11/15/23)^a		12,104		12,824,293
4.20%, 04/01/43 (Call 10/01/42)		5,545		5,664,313
4.40%, 04/01/21 (Call 01/01/21)		13,522		15,042,736
4.40%, 03/15/45 (Call 09/15/44)^a		9,765		10,265,777
4.88%, 02/15/44 (Call 08/15/43)		7,050		7,929,782
5.88%, 12/16/36		30,722		38,601,855
5.95%, 04/01/41 (Call 10/01/40)		15,090		19,185,194
Lowe’s Companies Inc.
3.12%, 04/15/22 (Call 01/15/22)		14,555		14,933,950


Security	Principal (000s)		Value

4.65%, 04/15/42 (Call 10/15/41)	$	8,555	$	9,222,239
Macy’s Retail Holdings Inc.
2.88%, 02/15/23 (Call 11/15/22)		6,630		6,383,131
McDonald’s Corp.
2.63%, 01/15/22		16,833		16,714,646
5.35%, 03/01/18		4,148		4,645,553
6.30%, 10/15/37		9,701		12,554,617
6.30%, 03/01/38		5,628		7,303,253
Target Corp.
2.30%, 06/26/19^a		12,509		12,597,130
2.90%, 01/15/22		12,587		12,632,250
3.50%, 07/01/24		6,500		6,592,373
3.88%, 07/15/20		6,671		7,186,703
4.00%, 07/01/42^a		17,550		16,970,885
6.00%, 01/15/18		10,918		12,420,045
6.50%, 10/15/37^a		14,364		18,846,058
7.00%, 01/15/38		2,930		4,030,113
Wal-Mart Stores Inc.
1.13%, 04/11/18		16,468		16,245,369
1.95%, 12/15/18		5,217		5,250,500
2.55%, 04/11/23 (Call 01/11/23)^a		19,875		19,348,867
3.25%, 10/25/20		6,683		7,011,556
3.30%, 04/22/24 (Call 01/22/24)^a		19,110		19,593,812
3.63%, 07/08/20		22,029		23,619,507
4.00%, 04/11/43 (Call 10/11/42)		5,000		5,003,417
4.25%, 04/15/21		19,162		21,115,577
4.30%, 04/22/44 (Call 10/22/43)^a		16,010		16,706,326
4.75%, 10/02/43 (Call 04/02/43)^a		13,749		15,360,974
4.88%, 07/08/40		7,434		8,306,463
5.00%, 10/25/40		14,036		16,007,359
5.25%, 09/01/35		22,592		26,445,364
5.63%, 04/01/40		19,669		24,224,036
5.63%, 04/15/41^a		21,955		27,298,957
5.80%, 02/15/18		4,241		4,822,733
5.88%, 04/05/27		2,329		2,954,994
6.20%, 04/15/38		7,441		9,762,895


86		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

6.50%, 08/15/37^a	$	33,908	$	45,928,111
7.55%, 02/15/30		5,119		7,336,338
Walgreen Co.
3.10%, 09/15/22^a		13,684		13,423,648
5.25%, 01/15/19		9,388		10,438,515

				727,648,256
SEMICONDUCTORS — 0.59%
Intel Corp.
1.35%, 12/15/17		35,530		35,435,213
2.70%, 12/15/22		5,039		4,945,978
3.30%, 10/01/21		19,317		20,138,905
4.00%, 12/15/32		6,304		6,322,394
4.25%, 12/15/42		6,525		6,468,286
4.80%, 10/01/41		26,344		28,366,258
Texas Instruments Inc.
1.65%, 08/03/19		5,167		5,051,643

				106,728,677
SOFTWARE — 1.96%
Microsoft Corp.
1.63%, 12/06/18		6,950		6,931,633
2.13%, 11/15/22		6,837		6,590,445
2.38%, 05/01/23 (Call 02/01/23)^a		11,319		10,976,311
3.00%, 10/01/20^a		7,507		7,833,179
3.50%, 11/15/42		9,634		8,806,361
3.63%, 12/15/23 (Call 09/15/23)^a		12,900		13,692,059
4.20%, 06/01/19		18,783		20,686,321
4.50%, 10/01/40		9,600		10,255,933
5.20%, 06/01/39		5,069		5,925,597
5.30%, 02/08/41		9,457		11,227,238
Oracle Corp.
2.25%, 10/08/19^a		22,323		22,391,962
2.38%, 01/15/19^a		21,798		22,137,829
2.50%, 10/15/22		10,143		9,794,255
2.80%, 07/08/21^a		14,852		14,948,545
3.40%, 07/08/24 (Call 04/08/24)^a		22,066		22,297,916
3.63%, 07/15/23		8,175		8,473,299
3.88%, 07/15/20^a		3,874		4,165,700
4.30%, 07/08/34 (Call 01/08/34)		20,260		20,901,197


Security	Principal (000s)		Value

4.50%, 07/08/44 (Call 01/08/44)^a	$	13,752	$	14,222,803
5.00%, 07/08/19		21,966		24,702,595
5.38%, 07/15/40		27,060		31,236,608
5.75%, 04/15/18		28,410		32,223,491
6.13%, 07/08/39		15,810		19,865,162
6.50%, 04/15/38		3,289		4,303,805

				354,590,244
TELECOMMUNICATIONS — 8.46%
AT&T Corp.
8.00%, 11/15/31		9,926		14,463,441
AT&T Inc.
1.40%, 12/01/17^a		9,885		9,840,859
2.30%, 03/11/19^a		3,000		3,018,827
2.38%, 11/27/18^a		18,290		18,497,065
2.63%, 12/01/22 (Call 09/01/22)^a		19,427		18,500,198
3.00%, 02/15/22^a		21,990		21,738,448
3.88%, 08/15/21		19,764		20,727,876
3.90%, 03/11/24 (Call 12/11/23)^a		8,550		8,779,641
4.30%, 12/15/42 (Call 06/15/42)		3,000		2,809,687
4.35%, 06/15/45 (Call 12/15/44)		27,489		25,817,911
4.45%, 05/15/21		12,350		13,433,120
4.80%, 06/15/44 (Call 12/15/43)		23,525		23,775,758
5.35%, 09/01/40		46,990		50,413,818
5.50%, 02/01/18		27,169		30,372,934
5.55%, 08/15/41		27,123		29,897,257
5.60%, 05/15/18		10,356		11,672,140
5.80%, 02/15/19		20,571		23,547,371
6.30%, 01/15/38^a		18,040		21,704,792
6.50%, 09/01/37^a		11,420		14,108,758
6.55%, 02/15/39^a		12,300		15,328,184
British Telecommunications PLC
2.35%, 02/14/19		15,850		15,908,507
5.95%, 01/15/18		13,439		15,154,386
9.63%, 12/15/30^a		20,923		33,097,525
CC Holdings GS V LLC/Crown Castle GS III Corp.
3.85%, 04/15/23		1,527		1,518,938


SCHEDULESOF INVESTMENTS			87

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal (000s)		Value

Cisco Systems Inc.
2.13%, 03/01/19	$	6,285	$	6,307,516
3.63%, 03/04/24		8,500		8,804,696
4.45%, 01/15/20^a		38,507		42,472,632
4.95%, 02/15/19		17,713		19,781,951
5.50%, 01/15/40^a		24,483		28,844,382
5.90%, 02/15/39		17,280		21,290,812
Deutsche Telekom International Finance BV
6.00%, 07/08/19^a		7,461		8,692,680
6.75%, 08/20/18		7,082		8,277,971
8.75%, 06/15/30		36,644		53,459,008
GTE Corp.
6.94%, 04/15/28		200		246,801
New Cingular Wireless Services Inc.
8.75%, 03/01/31		8,268		12,689,121
Orange SA
2.75%, 02/06/19		9,785		9,954,482
4.13%, 09/14/21^a		11,316		12,007,366
5.38%, 07/08/19		3,370		3,806,591
5.38%, 01/13/42^a		9,332		10,140,476
5.50%, 02/06/44 (Call 08/06/43)^a		10,722		11,923,085
9.00%, 03/01/31		28,543		42,353,473
Qwest Corp.
6.75%, 12/01/21		16,852		19,397,158
6.88%, 09/15/33 (Call 01/20/15)		6,480		6,496,200
Rogers Communications Inc.
4.10%, 10/01/23 (Call 07/01/23)^a		10,516		11,017,672
5.00%, 03/15/44 (Call 09/15/43)^a		7,505		7,872,101
6.80%, 08/15/18		15,260		17,792,398
Telefonica Emisiones SAU
3.19%, 04/27/18		8,272		8,573,428
4.57%, 04/27/23^a		11,350		12,043,092
5.13%, 04/27/20		11,974		13,264,671
5.46%, 02/16/21^a		9,841		11,034,590
5.88%, 07/15/19^a		12,111		13,869,053
7.05%, 06/20/36		23,185		29,800,520


Security	Principal (000s)		Value

Telefonica Europe BV
8.25%, 09/15/30	$	8,478	$	11,542,141
Verizon Communications Inc.
2.45%, 11/01/22 (Call 08/01/22)		17,500		16,429,567
3.00%, 11/01/21 (Call 09/01/21)		3,000		2,978,286
3.45%, 03/15/21		8,000		8,203,140
3.50%, 11/01/21^a		11,612		11,859,019
3.65%, 09/14/18		34,657		36,700,664
3.85%, 11/01/42 (Call 05/01/42)		8,454		7,448,952
4.15%, 03/15/24 (Call 12/15/23)		6,000		6,247,172
4.40%, 11/01/34 (Call 05/01/34)		1,580		1,549,579
4.50%, 09/15/20		20,657		22,432,103
4.60%, 04/01/21		9,312		10,121,744
4.75%, 11/01/41^a		7,800		7,891,489
5.05%, 03/15/34 (Call 12/15/33)^a		9,000		9,527,138
5.15%, 09/15/23		79,975		89,010,160
5.85%, 09/15/35		7,940		9,251,461
6.00%, 04/01/41		3,660		4,306,467
6.10%, 04/15/18		10,636		12,099,802
6.25%, 04/01/37		4,932		6,026,402
6.35%, 04/01/19		12,848		14,967,410
6.40%, 09/15/33		39,300		48,096,822
6.40%, 02/15/38		11,264		13,812,219
6.55%, 09/15/43		111,531		141,260,480
6.90%, 04/15/38		10,595		13,665,061
7.35%, 04/01/39^a		8,515		11,498,381
7.75%, 12/01/30		20,515		28,081,156
8.75%, 11/01/18		3,426		4,264,626
Vodafone Group PLC
1.50%, 02/19/18		11,871		11,727,172
2.50%, 09/26/22^a		9,750		9,105,671
2.95%, 02/19/23		17,260		16,522,435
4.38%, 02/19/43^a		26,743		25,028,266
5.45%, 06/10/19		12,650		14,281,455
6.15%, 02/27/37^a		7,286		8,526,502

				1,530,804,309


88		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

October 31, 2014


Security	Principal or Shares (000s)		Value

TRANSPORTATION — 0.85%
Burlington Northern Santa Fe LLC
3.85%, 09/01/23 (Call 06/01/23)	$	5,000	$	5,226,460
4.45%, 03/15/43 (Call 09/15/42)		4,981		5,010,256
4.55%, 09/01/44 (Call 03/01/44)		8,000		8,183,540
4.70%, 10/01/19		7,268		8,117,910
4.90%, 04/01/44 (Call 10/01/43)^a		13,395		14,472,219
5.75%, 05/01/40 (Call 11/01/39)		8,343		9,958,538
CSX Corp.
4.10%, 03/15/44 (Call 09/15/43)^a		8,250		7,900,195
FedEx Corp.
4.00%, 01/15/24		9,951		10,471,126
5.10%, 01/15/44		10,000		11,008,156
Union Pacific Corp.
4.16%, 07/15/22 (Call 04/15/22)		9,291		10,185,352
United Parcel Service Inc.
2.45%, 10/01/22		13,782		13,422,917
3.13%, 01/15/21		10,914		11,329,684
5.13%, 04/01/19^a		16,934		19,110,231
5.50%, 01/15/18		1,269		1,425,532
6.20%, 01/15/38		13,757		18,129,852

				153,951,968

TOTAL CORPORATE BONDS & NOTES
(Cost: $17,223,186,758)				17,739,783,500

SHORT-TERM INVESTMENTS — 8.27%

MONEY MARKET FUNDS — 8.27%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^b,d,e		1,149,845		1,149,844,556
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^b,d,e		110,254		110,253,771


Security	Shares (000s)		Value

BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,d		237,083	$	237,083,479

				1,497,181,806

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,497,181,806)				1,497,181,806

TOTAL INVESTMENTS IN SECURITIES — 106.28%
(Cost: $18,720,368,564)				19,236,965,306
Other Assets, Less Liabilities — (6.28)%				(1,135,879,364	)

NET ASSETS — 100.00%			$	18,101,085,942

^a	All or a portion of this security represents a security on loan.

^b	Affiliated issuer.

^c	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d	The rate quoted is the annualized seven-day yield of the fund at period end.

^e	All or a portion of this security represents an investment of securities lending collateral.

See notes to financial statements.


SCHEDULESOF INVESTMENTS			89

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2014


	iShares iBoxx $ High Yield Corporate Bond ETF			iShares iBoxx $ Investment Grade Corporate Bond ETF

ASSETS
Investments, at cost:
Unaffiliated	$	13,919,705,700		$	17,142,869,628
Affiliated		2,307,877,934			1,577,498,936

Total cost of investments	$	16,227,583,634		$	18,720,368,564

Investments in securities, at fair value (including securities on loan^a)
Unaffiliated	$	13,905,478,590		$	17,659,505,372
Affiliated		2,307,877,934			1,577,459,934

Total fair value of investments		16,213,356,524			19,236,965,306
Cash		516,389			–
Receivables:
Investment securities sold		3,849,374			59,339,854
Due from custodian		1,917,591			747,010
Interest		228,842,099			187,249,413
Capital shares sold		1,166,744			14,013,653

Total Assets		16,449,648,721			19,498,315,236


LIABILITIES
Payables:
Investment securities purchased		90,688,072			133,808,505
Collateral for securities on loan		2,104,409,833			1,260,098,327
Capital shares redeemed		757,165			–
Securities related to in-kind transactions		1,627,500			1,071,164
Investment advisory fees		5,741,852			2,251,298

Total Liabilities		2,203,224,422			1,397,229,294


NET ASSETS	$	14,246,424,299		$	18,101,085,942


Net assets consist of:
Paid-in capital	$	14,065,523,774		$	17,393,132,452
Undistributed net investment income		61,042,079			50,201,053
Undistributed net realized gain		134,085,556			141,155,695
Net unrealized appreciation (depreciation)		(14,227,110	)		516,596,742

NET ASSETS	$	14,246,424,299		$	18,101,085,942


Shares outstanding^b		154,000,000			152,000,000


Net asset value per share	$	92.51		$	119.09

^a	Securities on loan with values of $2,056,735,380 and $1,229,621,712, respectively.

^b	No par value, unlimited number of shares authorized.

See notes to financial statements.


90		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Selected Audited Financial Statements

February 28, 2014

iShares Trust

iShares iBoxx $ High Yield Corporate Bond ETF | HYG | NYSE Arca

iShares iBoxx $ Investment Grade Corporate Bond ETF | LQD | NYSE Arca

Schedule of Investments

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

CORPORATE BONDS & NOTES — 97.76%

AEROSPACE & DEFENSE — 1.33%
B/E Aerospace Inc.
5.25%, 04/01/22 (Call 04/01/17)^a	$	21,550	$	22,196,500
6.88%, 10/01/20 (Call 10/01/15)^a		11,750		12,895,625
Bombardier Inc.
4.25%, 01/15/16^a,b		13,425		13,962,000
5.75%, 03/15/22^b		8,300		8,424,500
6.13%, 01/15/23^a,b		21,775		22,101,625
7.50%, 03/15/18^a,b		6,550		7,336,000
7.75%, 03/15/20^a,b		14,070		15,723,225
Huntington Ingalls Industries Inc.
6.88%, 03/15/18 (Call 03/15/15)^a		9,835		10,625,215
7.13%, 03/15/21 (Call 03/15/16)^a		9,960		11,046,985
Meccanica Holdings USA Inc.
6.25%, 07/15/19^b		7,650		8,089,875
TransDigm Inc.
5.50%, 10/15/20 (Call 10/15/15)^a		9,250		9,365,625
7.50%, 07/15/21 (Call 07/15/16)^a		9,350		10,308,375
7.75%, 12/15/18 (Call 12/15/14)		26,179		28,011,530

				180,087,080
AIR FREIGHT & LOGISTICS — 0.10%
CEVA Group PLC
8.38%, 12/01/17 (Call 03/31/14)^a,b		13,500		14,107,500

				14,107,500
AIRLINES — 0.27%
Air Canada
6.75%, 10/01/19 (Call 10/01/16)^b		3,375		3,609,146
American Airlines Inc.
7.50%, 03/15/16 (Call 03/31/14)^b		1,098		1,139,724


Security	Principal (000s)		Value

Continental Airlines Inc. 2012-3 Pass Through Trust
6.13%, 04/29/18	$	7,350	$	7,791,000
United Airlines Inc.
6.75%, 09/15/15 (Call 03/31/14)^b		13,380		13,697,775
US Airways Group Inc.
6.13%, 06/01/18^a		10,103		10,647,274

				36,884,919
AUTO COMPONENTS — 1.25%
American Axle & Manufacturing Inc.
6.25%, 03/15/21 (Call 03/15/16)		6,450		6,901,500
6.63%, 10/15/22 (Call 10/15/17)^a		9,150		9,950,625
Dana Holding Corp.
5.38%, 09/15/21 (Call 09/15/16)^a		9,500		9,773,550
6.50%, 02/15/19 (Call 02/15/15)		6,300		6,722,131
Goodyear Tire & Rubber Co. (The)
6.50%, 03/01/21 (Call 03/01/16)		14,900		16,315,500
7.00%, 05/15/22 (Call 05/15/17)^a		11,670		12,982,875
8.25%, 08/15/20 (Call 08/15/15)^a		12,495		13,963,162
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
3.50%, 03/15/17 (Call 02/15/17)^b		11,750		11,926,250
4.88%, 03/15/19 (Call 07/15/16)^b		11,925		12,148,594
5.88%, 02/01/22 (Call 08/01/17)^b		11,345		11,571,900
6.00%, 08/01/20 (Call 02/01/17)^a		9,600		10,224,000
6.00%, 08/01/20 (Call 02/01/17)^b		13,625		14,510,625
Lear Corp.
4.75%, 01/15/23 (Call 01/15/18)^a,b		8,658		8,398,554


92		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Schaeffler Finance BV
4.75%, 05/15/21 (Call 05/15/16)^a,b	$	14,150	$	14,326,875
7.75%, 02/15/17^a,b		570		646,950
8.50%, 02/15/19 (Call 02/15/15)^b		8,915		9,962,512

				170,325,603
AUTOMOBILES — 1.23%
Chrysler Group LLC/CG Co-Issuer Inc.
8.00%, 06/15/19 (Call 06/15/15)^b		6,650		7,315,000
8.00%, 06/15/19 (Call 06/15/15)^a		26,050		28,655,000
8.25%, 06/15/21 (Call 06/15/16)^b		22,375		25,339,687
8.25%, 06/15/21 (Call 06/15/16)^a		28,210		31,947,825
General Motors Co.
3.50%, 10/02/18^a,b		15,300		15,797,250
4.88%, 10/02/23^b		25,250		26,572,519
Jaguar Land Rover Automotive PLC
4.13%, 12/15/18^b		12,650		12,903,000
5.63%, 02/01/23 (Call 02/01/18)^b		9,800		10,232,091
8.13%, 05/15/21 (Call 05/15/16)^b		7,375		8,385,646

				167,148,018
BEVERAGES — 0.45%
Constellation Brands Inc.
3.75%, 05/01/21^a		9,250		8,995,625
4.25%, 05/01/23^a		15,275		14,969,500
6.00%, 05/01/22^a		8,800		9,746,000
7.25%, 09/01/16		12,050		13,646,625
7.25%, 05/15/17		11,599		13,425,843

				60,783,593
BUILDING PRODUCTS — 0.80%
Building Materials Corp. of America
6.75%, 05/01/21 (Call 05/01/16)^b		16,400		17,794,000
6.88%, 08/15/18 (Call 08/15/14)^b		6,970		7,335,925


Security	Principal (000s)		Value

Grifols Inc.
8.25%, 02/01/18 (Call 03/31/14)^a	$	21,785	$	23,309,950
Masco Corp.
4.80%, 06/15/15		4,000		4,160,000
5.95%, 03/15/22		7,000		7,560,000
6.13%, 10/03/16		16,803		18,525,307
7.13%, 03/15/20^a		10,345		11,974,338
USG Corp.
6.30%, 11/15/16		8,229		8,907,893
9.75%, 01/15/18^a		7,785		9,342,000

				108,909,413
CAPITAL MARKETS — 0.47%
Affinion Group Inc.
7.88%, 12/15/18 (Call 12/15/14)^a		9,250		8,220,938
E*TRADE Financial Corp.
6.00%, 11/15/17 (Call 11/15/14)^a		9,750		10,322,812
6.38%, 11/15/19 (Call 11/15/15)^a		13,125		14,224,219
6.75%, 06/01/16		2,550		2,760,375
Nuveen Investments Inc.
9.13%, 10/15/17 (Call 10/15/14)^a,b		9,600		10,056,000
9.50%, 10/15/20 (Call 10/15/16)^a,b		10,425		11,128,687
Virgin Media Secured Finance PLC
5.25%, 01/15/21		6,800		7,021,000

				63,734,031
CHEMICALS — 2.10%
Ashland Inc.
3.00%, 03/15/16 (Call 02/15/16)^a		5,000		5,104,318
3.88%, 04/15/18 (Call 03/15/18)		12,750		13,224,883
4.75%, 08/15/22 (Call 05/15/22)		20,300		20,399,115
Axiall Corp.
4.88%, 05/15/23 (Call 05/15/18)^a,b		5,330		5,277,285


SCHEDULESOF INVESTMENTS			93

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Celanese U.S. Holdings LLC
4.63%, 11/15/22	$	8,700	$	8,665,895
5.88%, 06/15/21^a		8,400		9,030,120
6.63%, 10/15/18 (Call 10/15/14)		10,380		10,993,465
Eagle Spinco Inc.
4.63%, 02/15/21 (Call 02/15/18)^b		12,275		12,203,239
Hexion U.S. Finance Corp.
6.63%, 04/15/20 (Call 04/15/15)		25,400		26,289,000
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC
8.88%, 02/01/18 (Call 03/31/14)^a		20,250		21,133,236
9.00%, 11/15/20 (Call 11/15/15)^a		7,950		8,148,750
Huntsman International LLC
4.88%, 11/15/20 (Call 08/15/20)^a		10,000		10,175,000
8.63%, 03/15/21 (Call 09/15/15)^a		11,010		12,441,300
Ineos Finance PLC
7.50%, 05/01/20 (Call 05/01/15)^a,b		14,610		15,997,950
8.38%, 02/15/19 (Call 02/15/15)^b		15,050		16,627,171
Ineos Group Holdings SA
5.88%, 02/15/19 (Call 02/15/16)^b		2,725		2,799,938
6.13%, 08/15/18 (Call 05/15/15)^a,b		12,025		12,460,906
Momentive Performance Materials Inc.
8.88%, 10/15/20 (Call 10/15/15)^a		19,000		20,330,000
9.00%, 01/15/21 (Call 01/15/16)^a		11,408		9,639,760
Rockwood Specialties Group Inc.
4.63%, 10/15/20 (Call 10/15/15)^a		20,600		21,346,750


Security	Principal (000s)		Value

Trinseo Materials Operating SCA/Trinseo Materials Finance Inc.
8.75%, 02/01/19 (Call 08/01/15)^a,b	$	21,475	$	22,387,687

				284,675,768
COMMERCIAL BANKS — 3.01%
BBVA International Preferred SAU
5.92%, 04/29/49 (Call 04/18/17)^a,c		10,561		10,376,183
BPCE SA
12.50%, 12/31/49 (Call 09/30/19)^b,c		7,400		9,398,000
CIT Group Inc.
3.88%, 02/19/19		12,000		12,224,020
4.25%, 08/15/17		27,650		29,198,400
4.75%, 02/15/15^b		8,600		8,858,000
5.00%, 05/15/17		27,800		29,902,375
5.00%, 08/15/22^a		23,750		24,996,875
5.00%, 08/01/23^a		13,400		13,977,875
5.25%, 03/15/18		32,076		34,762,365
5.38%, 05/15/20^a		13,750		14,850,998
5.50%, 02/15/19^b		32,380		35,175,896
Commerzbank AG
8.13%, 09/19/23^a,b		9,450		10,707,795
Credit Agricole SA
6.64%, 12/31/49 (Call 05/31/17)^a,b,c		14,345		14,703,625
8.38%, 12/31/49 (Call 10/13/19)^a,b,c		16,600		18,675,000
Fifth Third Bancorp
5.10%, 12/31/49 (Call 06/30/23)^c		10,350		9,573,750
Regions Bank
7.50%, 05/15/18		10,200		12,131,625
Resona Preferred Global Securities (Cayman) Ltd.
7.19%, 12/31/49 (Call 07/30/15)^a,b,c		4,600		4,887,500
Royal Bank of Scotland Group PLC
6.00%, 12/19/23^a		21,321		22,013,933


94		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

6.10%, 06/10/23^a	$	19,500	$	20,340,280
6.13%, 12/15/22^a		37,900		39,838,956
Societe Generale SA
5.92%, 12/31/49 (Call 04/05/17)^a,b,c		13,415		14,354,050
UBS Preferred Funding Trust V Series 1
6.24%, 05/29/49 (Call 05/15/16)^a,c		16,875		17,929,688

				408,877,189
COMMERCIAL SERVICES & SUPPLIES — 2.36%
ADT Corp. (The)
2.25%, 07/15/17		15,000		14,876,880
3.50%, 07/15/22		11,400		10,402,806
4.13%, 06/15/23		13,950		13,041,498
6.25%, 10/15/21^a,b		19,500		20,589,110
Algeco Scotsman Global Finance PLC
8.50%, 10/15/18 (Call 10/15/15)^a,b		17,550		19,129,500
10.75%, 10/15/19 (Call 10/15/16)^b		13,550		14,871,125
APX Group Inc.
6.38%, 12/01/19 (Call 12/01/15)		10,550		10,866,500
8.75%, 12/01/20 (Call 12/01/15)^a,b		1,990		2,069,600
8.75%, 12/01/20 (Call 12/01/15)^a		8,181		8,528,693
Ceridian Corp.
8.88%, 07/15/19 (Call 07/15/15)^b		16,250		18,547,066
11.25%, 11/15/15 (Call 03/31/14)^a		12,450		12,512,250
Ceridian HCM Holding Inc.
11.00%, 03/15/21 (Call 03/15/16)^b		3,675		4,200,554
Clean Harbors Inc.
5.13%, 06/01/21 (Call 12/01/16)^a		10,725		10,939,500
5.25%, 08/01/20 (Call 08/01/16)^a		12,779		13,162,370


Security	Principal (000s)		Value

Covanta Holding Corp.
5.88%, 03/01/24 (Call 03/01/19)	$	2,250	$	2,294,863
Global A&T Electronics Ltd.
10.00%, 02/01/19 (Call 02/01/16)^b		14,700		12,127,500
Interactive Data Corp.
10.25%, 08/01/18 (Call 08/01/14)^a		9,650		10,458,187
Iron Mountain Inc.
5.75%, 08/15/24 (Call 08/15/17)^a		16,450		16,079,875
6.00%, 08/15/23 (Call 08/15/18)^a		11,400		12,140,715
7.75%, 10/01/19 (Call 10/01/15)		7,680		8,539,151
8.38%, 08/15/21 (Call 08/15/14)		9,050		9,671,307
R.R. Donnelley & Sons Co.
7.00%, 02/15/22^a		7,100		7,881,000
7.63%, 06/15/20		6,850		7,757,625
7.88%, 03/15/21^a		8,575		9,775,500
8.25%, 03/15/19		8,350		9,769,500
Tervita Corp.
8.00%, 11/15/18 (Call 11/15/15)^a,b		9,850		10,379,437
TransUnion LLC/TransUnion Financing Corp.
11.38%, 06/15/18 (Call 06/15/14)		11,750		12,682,656
West Corp.
7.88%, 01/15/19 (Call 11/15/14)^a		13,050		14,012,437
8.63%, 10/01/18 (Call 10/01/14)		3,540		3,814,350

				321,121,555
COMMUNICATIONS EQUIPMENT — 0.72%
Alcatel-Lucent USA Inc.
4.63%, 07/01/17^a,b		9,450		9,709,621
6.75%, 11/15/20 (Call 11/15/16)^b		15,880		16,872,500
8.88%, 01/01/20 (Call 07/01/16)^b		9,050		10,266,635


SCHEDULESOF INVESTMENTS			95

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Avaya Inc.
7.00%, 04/01/19 (Call 04/01/15)^a,b	$	17,040	$	16,912,200
10.50%, 03/01/21 (Call 03/01/17)^a,b		22,845		21,588,525
CommScope Inc.
8.25%, 01/15/19 (Call 01/15/15)^a,b		4,951		5,390,401
Nokia OYJ
5.38%, 05/15/19		16,500		17,527,214

				98,267,096
COMPUTERS & PERIPHERALS — 0.38%
Dell Inc.
3.10%, 04/01/16		2,150		2,181,085
4.63%, 04/01/21^a		7,700		7,168,857
5.65%, 04/15/18		8,900		9,276,508
5.88%, 06/15/19^a		5,600		5,836,921
NCR Corp.
4.63%, 02/15/21 (Call 02/15/17)^a		9,150		9,218,625
5.00%, 07/15/22 (Call 07/15/17)		13,250		13,415,625
5.88%, 12/15/21 (Call 12/15/17)^b		4,750		5,082,500

				52,180,121
CONSTRUCTION & ENGINEERING — 0.12%
Abengoa Finance SAU
7.75%, 02/01/20^a,b		7,650		8,264,789
8.88%, 11/01/17^b		7,293		8,217,701

				16,482,490
CONSTRUCTION MATERIALS — 0.32%
Lafarge SA
6.20%, 07/09/15^b		3,325		3,553,207
6.50%, 07/15/16		8,000		8,817,309
Vulcan Materials Co.
6.50%, 12/01/16^a		8,550		9,661,500
7.00%, 06/15/18^a		7,900		9,124,500
7.50%, 06/15/21		10,250		11,966,875

				43,123,391
CONSUMER FINANCE — 4.68%
Ally Financial Inc.
2.75%, 01/30/17		1,700		1,724,748
3.13%, 01/15/16^a		13,000		13,319,892


Security	Principal (000s)		Value

3.50%, 07/18/16	$	20,100	$	20,753,250
3.50%, 01/27/19		15,350		15,445,938
4.63%, 06/26/15^a		28,290		29,409,022
4.75%, 09/10/18^a		12,950		13,791,750
5.50%, 02/15/17^a		26,240		28,688,053
6.25%, 12/01/17^a		19,110		21,462,575
7.50%, 09/15/20^a		25,500		30,842,398
8.00%, 12/31/18^a		9,525		11,340,495
8.00%, 03/15/20^a		32,510		40,393,675
8.30%, 02/12/15		19,850		21,115,174
General Motors Financial Co. Inc.
2.75%, 05/15/16		11,865		12,087,351
3.25%, 05/15/18		14,570		14,911,063
4.25%, 05/15/23^a		16,265		16,386,988
4.75%, 08/15/17		24,284		26,277,046
6.75%, 06/01/18^a		10,315		11,965,274
ILFC E-Capital Trust II
6.25%, 12/21/65 (Call 12/21/15)^a,b,c		10,400		9,880,000
SLM Corp.
4.63%, 09/25/17^a		11,086		11,584,539
4.88%, 06/17/19^a		20,000		20,600,000
5.50%, 01/15/19^a		18,400		19,439,455
5.50%, 01/25/23^a		16,565		16,370,840
6.00%, 01/25/17		21,400		23,385,852
6.25%, 01/25/16		38,961		42,161,708
7.25%, 01/25/22^a		15,600		17,183,912
8.00%, 03/25/20^a		25,600		29,505,382
8.45%, 06/15/18^a		43,850		51,980,557
Springleaf Finance Corp.
6.90%, 12/15/17		36,980		40,539,325
7.75%, 10/01/21^a		7,850		8,713,500
Series I
5.40%, 12/01/15^a		13,800		14,490,000

				635,749,762
CONTAINERS & PACKAGING — 1.47%
Ardagh Packaging Finance PLC
7.38%, 10/15/17 (Call 10/15/14)^a,b		9,200		9,809,500
9.13%, 10/15/20 (Call 10/15/15)^a,b		12,676		14,038,670


96		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Ardagh Packaging Finance PLC/ Ardagh Holdings USA Inc.
6.25%, 01/31/19 (Call 01/31/16)^a,b	$	5,325	$	5,524,688
6.75%, 01/31/21 (Call 01/31/17)^b		6,700		6,968,000
7.38%, 10/15/17 (Call 10/15/14)^a,b		2,150		2,289,768
Ball Corp.
4.00%, 11/15/23^a		13,750		13,173,579
5.00%, 03/15/22^a		13,200		13,615,986
5.75%, 05/15/21 (Call 11/15/15)^a		8,900		9,478,500
6.75%, 09/15/20 (Call 03/15/15)		7,780		8,441,300
Berry Plastics Corp.
9.50%, 05/15/18 (Call 05/15/14)^a		8,350		8,862,740
9.75%, 01/15/21 (Call 01/15/16)^a		14,450		16,778,092
Beverage Packaging Holdings Luxembourg II SA/Beverage Packaging Holdings II
5.63%, 12/15/16 (Call 12/15/15)^b		8,950		9,218,500
6.00%, 06/15/17 (Call 06/15/16)^a,b		9,900		10,271,250
Crown Americas LLC/Crown Americas Capital Corp. III
6.25%, 02/01/21 (Call 02/01/16)		11,000		11,990,000
Crown Americas LLC/Crown Americas Capital Corp. IV
4.50%, 01/15/23		16,500		16,211,250
Sealed Air Corp.
5.25%, 04/01/23 (Call 01/01/23)^a,b		6,850		6,969,875
6.50%, 12/01/20 (Call 09/01/20)^a,b		7,500		8,231,250
8.13%, 09/15/19 (Call 09/15/15)^b		12,210		13,690,462
8.38%, 09/15/21 (Call 09/15/16)^a,b		12,270		14,171,850

				199,735,260


Security	Principal (000s)		Value

DISTRIBUTORS — 0.69%
HD Supply Inc.
7.50%, 07/15/20 (Call 10/15/16)^a	$	21,850	$	23,925,750
8.13%, 04/15/19 (Call 04/15/15)		19,940		22,407,575
11.00%, 04/15/20 (Call 04/15/16)^a		11,580		14,142,075
11.50%, 07/15/20 (Call 10/15/16)^a		16,300		19,886,000
VWR Funding Inc.
7.25%, 09/15/17 (Call 09/15/14)^a		12,875		13,679,688

				94,041,088
DIVERSIFIED CONSUMER SERVICES — 0.43%
Laureate Education Inc.
9.25%, 09/01/19 (Call 09/01/15)^b		24,300		26,001,000
Service Corp. International
5.38%, 01/15/22 (Call 07/15/17)^b		8,400		8,547,000
ServiceMaster Co.
7.00%, 08/15/20 (Call 08/15/15)		11,850		12,316,890
8.00%, 02/15/20 (Call 02/15/15)		10,800		11,548,387

				58,413,277
DIVERSIFIED FINANCIAL SERVICES — 0.55%
Denali Borrower LLC/Denali Finance Corp.
5.63%, 10/15/20 (Call 10/15/16)^a,b		25,125		25,815,937
ING U.S. Inc.
5.65%, 05/15/53 (Call 05/15/23)^a,c		12,675		12,421,500
Nationstar Mortgage LLC/Nationstar Capital Corp.
6.50%, 08/01/18 (Call 08/01/15)^a		6,850		6,884,250
6.50%, 07/01/21 (Call 01/01/17)^a		10,800		10,260,000
7.88%, 10/01/20 (Call 10/01/16)		6,700		6,783,750


SCHEDULESOF INVESTMENTS			97

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Nielsen Co. Luxembourg Sarl (The)
5.50%, 10/01/21 (Call 10/01/16)^b	$	11,450	$	12,008,188

				74,173,625
DIVERSIFIED TELECOMMUNICATION SERVICES — 8.46%
Altice Financing SA
6.50%, 01/15/22 (Call 12/15/16)^b		13,900		14,438,625
7.88%, 12/15/19 (Call 12/15/15)^b		6,750		7,374,375
Altice Finco SA
8.13%, 01/15/24 (Call 12/15/18)^b		6,800		7,208,000
9.88%, 12/15/20 (Call 12/15/16)^b		6,750		7,695,000
CCO Holdings LLC/CCO Holdings Capital Corp.
5.13%, 02/15/23 (Call 02/15/18)		18,250		17,793,750
5.25%, 03/15/21 (Call 03/15/16)^a,b		7,750		7,827,500
5.25%, 09/30/22 (Call 09/30/17)		20,250		20,224,688
5.75%, 09/01/23 (Call 03/01/18)^b		9,700		9,736,375
5.75%, 01/15/24 (Call 07/15/18)^a		16,650		16,712,438
6.50%, 04/30/21 (Call 04/30/15)		25,430		27,178,312
6.63%, 01/31/22 (Call 01/31/17)^a		14,950		16,071,250
7.00%, 01/15/19 (Call 03/31/14)^a		22,925		24,243,187
7.25%, 10/30/17 (Call 03/31/14)^a		14,580		15,454,800
7.38%, 06/01/20 (Call 12/01/15)^a		13,020		14,240,625
8.13%, 04/30/20 (Call 04/30/15)^a		15,050		16,460,938
CenturyLink Inc.
5.80%, 03/15/22^a		21,452		21,988,300
6.00%, 04/01/17^a		9,900		10,939,500
6.45%, 06/15/21		22,300		23,916,750


Security	Principal (000s)		Value

Series V
5.63%, 04/01/20^a	$	17,760	$	18,559,200
Series W
6.75%, 12/01/23		12,300		13,099,500
Cincinnati Bell Inc.
8.38%, 10/15/20 (Call 10/15/15)^a		10,244		11,140,350
8.75%, 03/15/18 (Call 03/31/14)		12,420		12,994,425
Embarq Corp.
7.08%, 06/01/16		15,250		17,119,717
Frontier Communications Corp.
7.13%, 03/15/19		9,500		10,473,750
7.13%, 01/15/23^a		14,300		14,979,250
7.63%, 04/15/24^a		14,450		15,280,875
8.13%, 10/01/18^a		9,450		10,985,625
8.25%, 04/15/17^a		8,770		10,195,125
8.50%, 04/15/20^a		18,165		20,980,575
8.75%, 04/15/22		17,510		19,961,400
Hughes Satellite Systems Corp.
6.50%, 06/15/19		18,320		20,083,300
7.63%, 06/15/21		15,790		17,803,225
Intelsat (Luxembourg) SA
6.75%, 06/01/18 (Call 06/01/15)^b		9,800		10,437,000
7.75%, 06/01/21 (Call 06/01/17)^a,b		30,375		32,729,062
8.13%, 06/01/23 (Call 06/01/18)^b		12,850		13,958,313
Intelsat Jackson Holdings SA
5.50%, 08/01/23 (Call 08/01/18)^a,b		33,035		32,704,650
6.63%, 12/15/22 (Call 12/15/17)^b		11,300		11,921,500
6.63%, 12/15/22 (Call 12/15/17)^a		13,800		14,559,000
7.25%, 04/01/19 (Call 04/01/15)		24,213		26,089,507
7.25%, 10/15/20 (Call 10/15/15)^a		39,370		42,814,875
7.50%, 04/01/21 (Call 04/01/16)		19,165		21,129,412
8.50%, 11/01/19 (Call 11/01/14)		10,500		11,340,000


98		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Koninklijke KPN NV
7.00%, 03/28/73 (Call 03/28/23)^a,b,c	$	11,100	$	11,612,820
Level 3 Communications Inc.
11.88%, 02/01/19 (Call 02/01/15)		10,850		12,477,500
Level 3 Financing Inc.
6.13%, 01/15/21 (Call 11/15/16)^a,b		6,525		6,916,500
7.00%, 06/01/20 (Call 06/01/16)^a		14,800		16,150,500
8.13%, 07/01/19 (Call 07/01/15)		21,950		24,118,660
8.63%, 07/15/20 (Call 01/15/16)		17,145		19,288,125
9.38%, 04/01/19 (Call 04/01/15)^a		9,630		10,713,375
PAETEC Holding Corp.
9.88%, 12/01/18 (Call 12/01/14)^a		11,700		12,914,460
SBA Telecommunications Inc.
5.75%, 07/15/20 (Call 07/15/16)		13,707		14,426,618
SoftBank Corp.
4.50%, 04/15/20^a,b		22,400		22,456,000
Telecom Italia Capital SA
7.00%, 06/04/18		3,800		4,308,250
tw telecom holdings Inc.
5.38%, 10/01/22 (Call 10/01/17)^a		15,900		16,178,250
UPCB Finance III Ltd.
6.63%, 07/01/20 (Call 07/01/15)^b		17,300		18,467,750
UPCB Finance V Ltd.
7.25%, 11/15/21 (Call 11/15/16)^b		12,070		13,337,350
UPCB Finance VI Ltd.
6.88%, 01/15/22 (Call 01/15/17)^b		10,950		11,908,125
Virgin Media Finance PLC
6.38%, 04/15/23 (Call 04/15/18)^a,b		13,350		14,017,500
8.38%, 10/15/19 (Call 10/15/14)^a		9,450		10,198,758


Security	Principal (000s)		Value

Virgin Media Secured Finance PLC
5.38%, 04/15/21 (Call 04/15/17)^b	$	17,950	$	18,443,625
Wind Acquisition Holdings Finance SA
6.50%, 04/30/20 (Call 04/30/16)^a,b		11,925		13,117,500
7.25%, 02/15/18 (Call 03/31/14)^b		30,500		32,082,120
11.75%, 07/15/17 (Call��03/31/14)^b		34,085		36,130,100
12.25%, 07/15/17 (Call 03/31/14)^a,b		15,200		15,808,000
Windstream Corp.
6.38%, 08/01/23 (Call 02/01/18)^a		12,000		11,820,000
7.50%, 06/01/22 (Call 06/01/17)^a		10,650		11,315,625
7.50%, 04/01/23 (Call 04/01/16)^a		9,350		9,840,875
7.75%, 10/15/20 (Call 10/15/15)		11,715		12,637,556
7.75%, 10/01/21 (Call 10/01/16)^a		15,150		16,362,000
7.88%, 11/01/17^a		18,125		20,798,437

				1,148,690,428
ELECTRIC UTILITIES — 2.03%
DPL Inc.
6.50%, 10/15/16 (Call 09/15/16)^a		10,620		11,412,527
7.25%, 10/15/21 (Call 07/15/21)^a		11,890		11,849,475
EDP Finance BV
4.90%, 10/01/19^a,b		22,000		23,049,400
5.25%, 01/14/21^b		12,948		13,468,510
6.00%, 02/02/18^b		13,000		14,158,300
Enel SpA
8.75%, 09/24/73 (Call 09/24/23)^b,c		16,000		17,819,200


SCHEDULESOF INVESTMENTS			99

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc.
6.88%, 08/15/17 (Call 02/15/15)^a,b	$	3,500	$	3,587,272
10.00%, 12/01/20 (Call 12/01/15)^a		37,342		38,835,680
10.25%, 12/01/20 (Call 12/01/15)^b		21,050		21,892,000
12.25%, 03/01/22 (Call 03/01/17)^a,b		31,020		35,983,200
FirstEnergy Corp.
Series A
2.75%, 03/15/18 (Call 02/15/18)		4,200		4,222,411
Series B
4.25%, 03/15/23 (Call 12/15/22)^a		11,300		11,071,842
Ipalco Enterprises Inc.
5.00%, 05/01/18 (Call 04/01/18)^a		9,000		9,518,041
7.25%, 04/01/16^a,b		8,645		9,555,341
PPL Capital Funding Inc.
Series A
6.70%, 03/30/67 (Call 03/30/17)^c		10,150		10,200,750
RRI Energy Inc.
7.88%, 06/15/17^a		11,770		11,946,626
Texas Competitive Electric Holdings Co. LLC/TCEH Finance Inc.
11.50%, 10/01/20 (Call 04/01/16)^a,b		25,300		18,595,500
15.00%, 04/01/21 (Call 10/01/15)^a		30,400		8,360,000

				275,526,075
ELECTRICAL EQUIPMENT — 0.18%
Realogy Group LLC
7.63%, 01/15/20 (Call 01/15/16)^b		10,120		11,294,704
7.88%, 02/15/19 (Call 02/15/15)^a,b		12,050		13,052,340

				24,347,044


Security	Principal (000s)		Value

ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.25%
Flextronics International Ltd.
4.63%, 02/15/20^a	$	8,425	$	8,511,186
5.00%, 02/15/23		9,300		9,379,970
Rexel SA
5.25%, 06/15/20 (Call 06/15/16)^b		8,850		8,982,750
6.13%, 12/15/19 (Call 12/15/15)^b		6,400		6,720,000

				33,593,906
ENERGY EQUIPMENT & SERVICES — 0.72%
CGG
6.50%, 06/01/21 (Call 06/01/16)^a		11,760		12,060,907
7.75%, 05/15/17 (Call 03/31/14)^a		8,585		8,792,246
Hercules Offshore Inc.
8.75%, 07/15/21 (Call 07/15/17)^a,b		8,150		9,088,521
Hornbeck Offshore Services Inc.
5.00%, 03/01/21 (Call 03/01/16)		8,450		8,390,107
Offshore Group Investments Ltd.
7.13%, 04/01/23 (Call 04/01/18)^a		11,725		11,988,515
7.50%, 11/01/19 (Call 11/01/15)		18,900		20,383,845
Oil States International Inc.
5.13%, 01/15/23 (Call 01/15/18)		3,200		3,585,759
6.50%, 06/01/19 (Call 06/01/14)		150		158,625
Pacific Drilling SA
5.38%, 06/01/20 (Call 06/01/16)^a,b		12,825		12,869,543
Precision Drilling Corp.
6.63%, 11/15/20 (Call 11/15/15)		10,270		10,979,827

				98,297,895


100		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

FOOD & STAPLES RETAILING — 0.68%
Rite Aid Corp.
6.75%, 06/15/21 (Call 06/15/16)^a	$	13,150	$	14,432,125
8.00%, 08/15/20 (Call 08/15/15)^a		10,400		11,664,012
9.25%, 03/15/20 (Call 03/15/16)^a		15,900		18,312,008
SUPERVALU Inc.
6.75%, 06/01/21 (Call 06/01/17)^a		7,300		7,354,750
8.00%, 05/01/16		12,500		13,781,250
US Foods Inc.
8.50%, 06/30/19 (Call 06/30/14)^a		24,450		26,498,910

				92,043,055
FOOD PRODUCTS — 1.22%
ARAMARK Corp.
5.75%, 03/15/20 (Call 03/15/15)^b		18,850		19,910,312
Big Heart Pet Brands
7.63%, 02/15/19 (Call 03/31/14)^a		22,450		23,404,125
Hawk Acquisition Sub Inc.
4.25%, 10/15/20 (Call 04/15/15)^b		49,950		49,700,250
Post Holdings Inc.
6.75%, 12/01/21 (Call 12/01/17)^b		3,125		3,343,750
7.38%, 02/15/22 (Call 02/15/17)^a		22,550		24,523,125
Smithfield Foods Inc.
5.25%, 08/01/18 (Call 08/01/15)^a,b		8,375		8,772,813
5.88%, 08/01/21 (Call 08/01/16)^b		7,525		7,750,750
6.63%, 08/15/22 (Call 08/15/17)^a		17,055		18,502,969
7.75%, 07/01/17		8,129		9,419,479

				165,327,573


Security	Principal (000s)		Value

GAS UTILITIES — 0.76%
AmeriGas Finance LLC/AmeriGas Finance Corp.
6.75%, 05/20/20 (Call 05/20/16)^a	$	11,350	$	12,365,731
7.00%, 05/20/22 (Call 05/20/17)^a		19,060		20,828,530
AmeriGas Partners LP/AmeriGas Finance Corp.
6.25%, 08/20/19 (Call 08/20/15)^a		8,230		8,856,260
Ferrellgas LP/Ferrellgas Finance Corp.
6.50%, 05/01/21 (Call 05/01/16)		4,950		5,161,676
Sabine Pass LNG LP
6.50%, 11/01/20 (Call 11/01/16)^a		10,700		11,229,176
7.50%, 11/30/16		28,700		31,792,330
Suburban Propane Partners LP/Suburban Energy Finance Corp.
7.50%, 10/01/18 (Call 10/01/14)		11,695		12,472,786

				102,706,489
HEALTH CARE EQUIPMENT & SUPPLIES — 1.15%
Alere Inc.
6.50%, 06/15/20 (Call 06/15/16)^a		8,375		8,825,156
7.25%, 07/01/18 (Call 12/15/15)		7,400		8,121,500
8.63%, 10/01/18 (Call 10/01/14)		10,215		10,981,125
Biomet Inc.
6.50%, 08/01/20 (Call 08/01/15)		27,550		29,754,000
6.50%, 10/01/20 (Call 10/01/15)^a		14,000		14,927,500
ConvaTec Healthcare E SA
10.50%, 12/15/18 (Call 12/15/14)^b		13,147		14,658,905


SCHEDULESOF INVESTMENTS			101

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

DJO Finance LLC/DJO Finance Corp.
9.88%, 04/15/18 (Call 04/15/15)^a	$	4,450	$	4,872,750
Hologic Inc.
6.25%, 08/01/20 (Call 08/01/15)		15,525		16,572,938
Kinetic Concepts Inc./KCI USA Inc.
10.50%, 11/01/18 (Call 11/01/15)^a		30,050		34,820,437
12.50%, 11/01/19 (Call 11/01/15)^a		11,290		13,068,175

				156,602,486
HEALTH CARE PROVIDERS & SERVICES — 5.43%
CHS/Community Health Systems Inc.
5.13%, 08/15/18 (Call 08/15/15)		27,350		28,922,625
7.13%, 07/15/20 (Call 07/15/16)^a		21,400		23,433,000
8.00%, 11/15/19 (Call 11/15/15)		36,000		39,960,000
DaVita HealthCare Partners Inc.
5.75%, 08/15/22 (Call 08/15/17)^a		18,200		19,292,000
6.38%, 11/01/18 (Call 03/31/14)^a		14,875		15,618,750
6.63%, 11/01/20 (Call 11/01/14)		13,700		14,744,625
Fresenius Medical Care US Finance II Inc.
5.63%, 07/31/19^b		14,450		15,533,750
5.88%, 01/31/22^b		11,450		12,280,125
Fresenius Medical Care US Finance Inc.
5.75%, 02/15/21^a,b		11,000		11,783,750
6.50%, 09/15/18^b		5,810		6,536,250
6.88%, 07/15/17^a		9,900		11,211,750
FWCT-2 Escrow Corp./Community Health Systems Inc.
5.13%, 08/01/21 (Call 02/01/17)^b		10,600		10,971,000


Security	Principal (000s)		Value

6.88%, 02/01/22 (Call 02/01/18)^b	$	18,450	$	19,603,125
HCA Holdings Inc.
4.75%, 05/01/23		22,650		22,706,625
5.88%, 03/15/22^a		22,250		24,308,125
6.25%, 02/15/21^a		17,300		18,857,000
6.50%, 02/15/16^a		21,250		23,162,500
6.50%, 02/15/20		47,980		54,097,450
7.25%, 09/15/20 (Call 03/15/15)		26,810		29,155,875
7.50%, 02/15/22^a		32,755		38,077,687
7.75%, 05/15/21 (Call 11/15/15)^a		26,130		28,938,975
7.88%, 02/15/20 (Call 08/15/14)		22,760		24,353,200
8.00%, 10/01/18^a		11,850		14,131,125
8.50%, 04/15/19 (Call 04/15/14)		26,900		28,245,000
HCA Inc.
5.88%, 05/01/23^a		23,950		25,267,250
LifePoint Hospitals Inc.
5.50%, 12/01/21 (Call 12/01/16)^b		4,850		5,074,313
6.63%, 10/01/20 (Call 10/01/15)		4,000		4,345,000
MultiPlan Inc.
9.88%, 09/01/18 (Call 09/01/14)^b		150		163,875
Tenet Healthcare Corp.
4.38%, 10/01/21		21,500		21,258,125
4.50%, 04/01/21		17,325		17,281,688
4.75%, 06/01/20^a		13,100		13,427,500
6.00%, 10/01/20^b		29,535		31,971,637
6.25%, 11/01/18		21,560		23,877,700
8.00%, 08/01/20 (Call 08/01/15)^a		15,560		17,116,000
8.13%, 04/01/22		37,100		41,598,375

				737,305,775
HEALTH CARE TECHNOLOGY — 0.09%
IMS Health Inc.
6.00%, 11/01/20 (Call 11/01/15)^b		10,400		11,128,000
12.50%, 03/01/18 (Call 03/01/15)^b		1,100		1,254,000

				12,382,000


102		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

HOTELS, RESTAURANTS & LEISURE — 4.04%
Boyd Gaming Corp.
9.13%, 12/01/18 (Call 12/01/14)^a	$	8,150	$	8,841,800
Burger King Corp.
9.88%, 10/15/18 (Call 10/15/14)^a		12,860		14,066,268
Caesars Entertainment Operating Co. Inc.
5.63%, 06/01/15^a		3,700		3,547,375
8.50%, 02/15/20 (Call 02/15/16)^a		21,850		20,976,000
9.00%, 02/15/20 (Call 02/15/16)^a		48,050		46,848,750
10.00%, 12/15/18 (Call 03/31/14)^a		62,897		30,586,036
10.75%, 02/01/16 (Call 03/31/14)^a		10,250		8,430,625
11.25%, 06/01/17 (Call 03/31/14)		31,960		32,679,100
12.75%, 04/15/18 (Call 04/15/14)		15,445		8,494,750
Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Properties Finance Inc.
8.00%, 10/01/20 (Call 10/01/16)^a,b		18,400		19,567,808
11.00%, 10/01/21 (Call 10/01/16)^a,b		20,850		22,006,441
Felcor Lodging LP
5.63%, 03/01/23 (Call 03/01/18)		8,600		8,632,250
6.75%, 06/01/19 (Call 06/01/15)^a		11,020		11,867,559
10.00%, 10/01/14^a		1,141		1,196,624
GLP Capital LP/GLP Financing II Inc.
4.38%, 11/01/18 (Call 08/01/18)^b		7,150		7,418,125
4.88%, 11/01/20 (Call 08/01/20)^b		10,625		10,996,875
5.38%, 11/01/23 (Call 08/01/23)^a,b		10,250		10,583,125


Security	Principal (000s)		Value

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.
5.63%, 10/15/21 (Call 10/15/16)^a,b	$	11,250	$	11,925,000
MGM Resorts International
5.25%, 03/31/20^a		7,550		7,760,505
6.63%, 07/15/15		14,100		15,024,118
6.63%, 12/15/21^a		21,250		23,372,692
6.75%, 10/01/20^a		18,100		20,037,448
7.50%, 06/01/16		12,570		14,026,883
7.63%, 01/15/17^a		13,850		15,783,819
7.75%, 03/15/22^a		16,100		18,450,508
8.63%, 02/01/19^a		14,750		17,632,778
10.00%, 11/01/16		9,100		10,920,000
11.38%, 03/01/18^a		9,420		12,186,604
Mohegan Tribal Gaming Authority
9.75%, 09/01/21 (Call 09/01/16)^a,b		8,375		9,233,065
Pinnacle Entertainment Inc.
7.50%, 04/15/21 (Call 04/15/15)^a		15,896		17,286,900
PNK Finance Corp.
6.38%, 08/01/21 (Call 08/01/16)^a,b		14,940		15,616,609
Sabre Holdings Corp.
8.35%, 03/15/16		8,150		9,128,001
Sabre Inc.
8.50%, 05/15/19 (Call 05/15/15)^b		13,150		14,662,250
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
4.25%, 05/30/23 (Call 02/28/23)^a,b		8,650		8,408,121
5.38%, 03/15/22 (Call 03/15/17)^a		12,300		12,961,125
7.75%, 08/15/20 (Call 08/15/15)^a		24,220		26,997,261

				548,153,198


SCHEDULESOF INVESTMENTS			103

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

HOUSEHOLD DURABLES — 1.21%
Brookfield Residential Properties Inc.
6.13%, 07/01/22 (Call 07/01/17)^b	$	9,450	$	9,709,875
6.50%, 12/15/20 (Call 12/15/15)^a,b		9,150		9,721,875
Centex Corp.
6.50%, 05/01/16^a		10,100		11,172,620
DR Horton Inc.
3.63%, 02/15/18 (Call 11/15/17)		7,900		8,106,980
3.75%, 03/01/19 (Call 12/01/18)		3,900		3,948,750
5.75%, 08/15/23 (Call 05/15/23)^a		7,600		7,999,000
Jarden Corp.
7.50%, 05/01/17^a		8,330		9,558,675
K. Hovnanian Enterprises Inc.
7.25%, 10/15/20 (Call 10/15/15)^a,b		9,800		10,682,000
KB Home
7.00%, 12/15/21 (Call 09/15/21)^a		8,950		9,576,500
Lennar Corp.
4.50%, 06/15/19 (Call 04/16/19)		3,750		3,843,750
4.75%, 12/15/17 (Call 09/15/17)^a		8,025		8,506,500
4.75%, 11/15/22 (Call 08/15/22)		4,550		4,368,000
12.25%, 06/01/17		11,275		14,544,750
Standard Pacific Corp.
8.38%, 05/15/18		9,225		10,977,750
8.38%, 01/15/21^a		8,670		10,338,975
Taylor Morrison Communities Inc./Monarch Communities Inc.
5.25%, 04/15/21 (Call 04/15/16)^b		10,350		10,324,125
Toll Brothers Finance Corp.
4.38%, 04/15/23 (Call 01/15/23)^a		10,900		10,545,750


Security	Principal (000s)		Value

5.88%, 02/15/22 (Call 11/15/21)	$	7,180	$	7,718,500
8.91%, 10/15/17^a		2,750		3,327,500

				164,971,875
HOUSEHOLD PRODUCTS — 0.30%
Harbinger Group Inc.
7.88%, 07/15/19 (Call 01/15/16)		18,575		20,061,000
Spectrum Brands Inc.
6.38%, 11/15/20 (Call 11/15/16)		8,860		9,590,950
6.63%, 11/15/22 (Call 11/15/17)^a		9,650		10,494,375

				40,146,325
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 2.27%
AES Corp. (The)
4.88%, 05/15/23 (Call 05/15/18)^a		12,005		11,655,998
7.38%, 07/01/21 (Call 06/01/21)		15,175		17,252,371
8.00%, 10/15/17		20,771		24,521,788
8.00%, 06/01/20		11,580		13,553,825
9.75%, 04/15/16^a		2,000		2,343,342
Calpine Corp.
5.88%, 01/15/24 (Call 11/01/18)^a,b		8,200		8,374,250
6.00%, 01/15/22 (Call 11/01/16)^a,b		14,350		15,182,632
7.50%, 02/15/21 (Call 11/01/15)^b		27,287		30,152,135
7.88%, 07/31/20 (Call 07/31/15)^a,b		16,829		18,648,297
7.88%, 01/15/23 (Call 01/15/17)^a,b		16,934		19,039,441
GenOn Energy Inc.
9.50%, 10/15/18^a		9,210		9,567,354
9.88%, 10/15/20 (Call 10/15/15)		11,650		11,937,905
NRG Energy Inc.
6.25%, 07/15/22 (Call 07/15/18)^a,b		16,250		16,859,585


104		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

6.63%, 03/15/23 (Call 09/15/17)^a	$	16,700	$	17,616,731
7.63%, 01/15/18		18,430		20,796,467
7.63%, 05/15/19 (Call 05/15/14)^a		12,620		13,249,443
7.88%, 05/15/21 (Call 05/15/16)^a		19,100		21,189,498
8.25%, 09/01/20 (Call 09/01/15)^a		20,655		22,865,112
8.50%, 06/15/19 (Call 06/15/14)^a		12,605		13,339,269

				308,145,443
INSURANCE — 0.08%
Hartford Financial Services Group Inc.
8.13%, 06/15/68 (Call 06/15/18)^c		9,042		10,579,140

				10,579,140
INTERNET & CATALOG RETAIL — 0.33%
QVC Inc.
4.38%, 03/15/23		11,525		11,201,347
5.13%, 07/02/22		8,350		8,526,619
7.38%, 10/15/20 (Call 04/15/15)^b		9,814		10,672,725
7.50%, 10/01/19 (Call 10/01/14)^b		13,000		13,910,000

				44,310,691
INTERNET SOFTWARE & SERVICES — 0.59%
eAccess Ltd.
8.25%, 04/01/18 (Call 04/01/15)^b		2,900		3,146,500
Equinix Inc.
4.88%, 04/01/20 (Call 04/01/17)^a		8,800		8,921,000
5.38%, 04/01/23 (Call 04/01/18)^a		16,600		16,816,042
7.00%, 07/15/21 (Call 07/15/16)^a		13,600		15,090,427
IAC/InterActiveCorp
4.75%, 12/15/22 (Call 12/15/17)		6,850		6,627,375
4.88%, 11/30/18 (Call 11/30/14)^b		5,600		5,824,000


Security	Principal (000s)		Value

Zayo Group LLC/Zayo Capital Inc.
8.13%, 01/01/20 (Call 07/01/15)^a	$	13,350	$	14,701,688
10.13%, 07/01/20 (Call 07/01/16)^a		7,725		8,961,000

				80,088,032
IT SERVICES — 2.32%
Audatex North America Inc.
6.00%, 06/15/21 (Call 06/15/17)^b		22,700		24,118,750
First Data Corp.
6.75%, 11/01/20 (Call 11/01/15)^a,b		30,288		32,699,240
7.38%, 06/15/19 (Call 06/15/15)^b		28,200		30,561,750
8.25%, 01/15/21 (Call 01/15/16)^a,b		34,652		37,575,485
8.88%, 08/15/20 (Call 08/15/15)^b		10,000		11,102,725
10.63%, 06/15/21 (Call 04/15/16)^b		11,000		12,312,742
11.25%, 01/15/21 (Call 01/15/16)^a,b		12,950		14,698,250
11.75%, 08/15/21 (Call 05/15/16)^a,b		38,525		41,173,594
11.75%, 08/15/21 (Call 05/15/16)^b		4,000		4,275,000
12.63%, 01/15/21 (Call 01/15/16)^a		49,582		59,293,126
SunGard Data Systems Inc.
6.63%, 11/01/19 (Call 11/01/15)		17,750		18,925,937
7.38%, 11/15/18 (Call 03/31/14)		16,125		17,132,813
7.63%, 11/15/20 (Call 11/15/15)^a		10,510		11,561,000

				315,430,412
MACHINERY — 0.95%
BlueLine Rental Finance Corp.
7.00%, 02/01/19 (Call 02/01/16)^b		7,350		7,717,500


SCHEDULESOF INVESTMENTS			105

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Case New Holland Inc.
7.88%, 12/01/17	$	24,700	$	28,899,000
CNH Capital LLC
3.25%, 02/01/17^a		7,800		7,936,500
3.63%, 04/15/18		9,950		10,086,813
3.88%, 11/01/15^a	��	10,570		10,873,887
6.25%, 11/01/16^a		7,670		8,417,825
Manitowoc Co. Inc. (The)
8.50%, 11/01/20 (Call 11/01/15)^a		9,000		10,203,750
Navistar International Corp.
8.25%, 11/01/21 (Call 11/01/14)^a		19,850		20,743,250
SPX Corp.
6.88%, 09/01/17^a		8,300		9,441,250
Terex Corp.
6.00%, 05/15/21 (Call 11/15/16)^a		13,500		14,191,875

				128,511,650
MEDIA — 7.18%
AMC Entertainment Inc.
9.75%, 12/01/20 (Call 12/01/15)^a		11,120		12,786,454
AMC Networks Inc.
4.75%, 12/15/22 (Call 12/15/17)		10,725		10,741,675
7.75%, 07/15/21 (Call 07/15/16)		10,900		12,371,919
Cablevision Systems Corp.
5.88%, 09/15/22^a		12,400		12,896,000
7.75%, 04/15/18^a		14,000		16,135,000
8.00%, 04/15/20^a		9,700		11,397,500
8.63%, 09/15/17^a		12,800		15,264,000
Cequel Communications Holdings I LLC/Cequel Capital Corp.
5.13%, 12/15/21 (Call 06/15/16)^b		12,375		12,328,594
6.38%, 09/15/20 (Call 09/15/15)^a,b		24,775		26,137,625
Cinemark USA Inc.
4.88%, 06/01/23 (Call 06/01/18)		9,000		8,707,500


Security	Principal (000s)		Value

5.13%, 12/15/22 (Call 12/15/17)^a	$	6,700	$	6,672,076
Clear Channel Communications Inc.
9.00%, 12/15/19 (Call 07/15/15)^a		23,100		24,283,875
9.00%, 03/01/21 (Call 03/01/16)^a		32,590		34,138,025
11.25%, 03/01/21 (Call 03/01/16)^a		7,700		8,562,525
14.00%, 02/01/21 (Call 08/01/15)^a,d		2,401		2,382,764
Clear Channel Worldwide Holdings Inc.
6.50%, 11/15/22 (Call 11/15/17)^a		10,375		10,971,563
6.50%, 11/15/22 (Call 11/15/17)		34,225		36,449,625
Series A
7.63%, 03/15/20 (Call 03/15/15)		1,000		1,075,000
Series B
7.63%, 03/15/20 (Call 03/15/15)^a		31,280		33,782,400
CSC Holdings LLC
6.75%, 11/15/21^a		16,500		18,645,000
8.63%, 02/15/19^a		9,270		11,147,175
DISH DBS Corp.
4.25%, 04/01/18		21,900		22,745,248
4.63%, 07/15/17^a		15,550		16,474,336
5.00%, 03/15/23		26,025		25,927,406
5.13%, 05/01/20		18,450		19,107,141
5.88%, 07/15/22		32,800		34,631,808
6.75%, 06/01/21^a		32,530		36,514,925
7.13%, 02/01/16		26,184		28,751,037
7.75%, 05/31/15		13,800		14,865,194
7.88%, 09/01/19^a		23,880		28,050,785
Gannett Co. Inc.
5.13%, 10/15/19 (Call 10/15/16)^b		8,575		8,978,460
5.13%, 07/15/20 (Call 07/15/16)^b		13,750		14,091,399
6.38%, 10/15/23 (Call 10/15/18)^a,b		9,750		10,210,715


106		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

inVentiv Health Inc.
9.00%, 01/15/18 (Call 01/15/16)^a,b	$	13,000	$	13,747,500
11.00%, 08/15/18 (Call 08/15/14)^a,b		4,927		4,532,840
Lamar Media Corp.
5.00%, 05/01/23 (Call 05/01/18)^a		8,600		8,562,328
5.38%, 01/15/24 (Call 01/15/19)^b		2,425		2,498,808
5.88%, 02/01/22 (Call 02/01/17)^a		7,350		7,772,394
7.88%, 04/15/18 (Call 04/15/14)^a		10,310		10,786,658
McClatchy Co. (The)
9.00%, 12/15/22 (Call 12/15/17)		15,000		17,145,000
Nara Cable Funding Ltd.
8.88%, 12/01/18 (Call 03/31/14)^b		19,450		21,103,250
Nielsen Finance LLC/Nielsen Finance Co.
4.50%, 10/01/20 (Call 10/01/16)^a		13,000		13,066,797
7.75%, 10/15/18 (Call 10/15/14)^a		18,840		20,182,350
Quebecor Media Inc.
5.75%, 01/15/23^a		14,700		14,883,750
Regal Cinemas Corp.
8.63%, 07/15/19 (Call 07/15/14)^a		1,000		1,071,339
Regal Entertainment Group
5.75%, 03/15/22 (Call 03/15/17)		6,350		6,492,875
Sinclair Television Group Inc.
5.38%, 04/01/21 (Call 04/01/16)^a		10,600		10,619,419
6.13%, 10/01/22 (Call 10/01/17)		9,150		9,463,975
Sirius XM Holdings Inc.
4.25%, 05/15/20 (Call 05/15/16)^a,b		10,150		9,896,250
4.63%, 05/15/23 (Call 05/15/18)^a,b		8,825		8,339,625


Security	Principal (000s)		Value

5.25%, 08/15/22 (Call 08/15/17)^a,b	$	6,625	$	6,856,875
5.75%, 08/01/21 (Call 08/01/16)^a,b		11,075		11,504,156
5.88%, 10/01/20 (Call 10/01/16)^b		8,350		8,777,986
Unitymedia Hessen GmbH & Co. KG
5.50%, 01/15/23 (Call 01/15/18)^b		19,200		19,883,856
7.50%, 03/15/19 (Call 03/15/15)^b		12,500		13,580,395
Univision Communications Inc.
5.13%, 05/15/23 (Call 05/15/18)^a,b		11,025		11,277,945
6.75%, 09/15/22 (Call 09/15/17)^b		19,650		21,762,375
6.88%, 05/15/19 (Call 05/15/15)^b		20,300		21,822,500
7.88%, 11/01/20 (Call 11/01/15)^b		12,830		14,215,528
8.50%, 05/15/21 (Call 11/15/15)^a,b		15,400		17,074,750
Videotron Ltee
5.00%, 07/15/22		12,150		12,241,125
9.13%, 04/15/18 (Call 03/31/14)^a		11,174		11,620,960
WideOpenWest Finance LLC/WideOpenWest Capital Corp.
10.25%, 07/15/19 (Call 07/15/15)		13,250		15,105,000
WMG Acquisition Corp.
6.00%, 01/15/21 (Call 01/15/16)^a,b		7,739		8,125,950
11.50%, 10/01/18 (Call 10/01/14)		12,690		14,413,944

				975,653,252
METALS & MINING — 3.73%
AK Steel Corp.
7.63%, 05/15/20 (Call 05/15/15)^a		10,250		10,173,126
Aleris International Inc.
7.63%, 02/15/18 (Call 03/31/14)^a		9,600		10,150,956


SCHEDULESOF INVESTMENTS			107

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

7.88%, 11/01/20 (Call 11/01/15)^a	$	9,050	$	9,581,688
ArcelorMittal SA
4.25%, 02/25/15^a		3,650		3,739,985
4.25%, 08/05/15^a		21,100		21,721,804
4.25%, 03/01/16^a		8,550		8,877,064
5.00%, 02/25/17		24,376		26,081,101
5.75%, 08/05/20^a		12,700		13,626,475
6.00%, 03/01/21^a		25,785		27,859,501
6.13%, 06/01/18		26,400		29,079,956
6.75%, 02/25/22^a		18,900		21,015,836
9.50%, 02/15/15		8,543		9,158,569
10.35%, 06/01/19		25,700		32,799,625
Commercial Metals Co.
6.50%, 07/15/17^a		6,786		7,612,212
7.35%, 08/15/18^a		9,250		10,579,697
First Quantum Minerals Ltd.
6.75%, 02/15/20 (Call 02/15/17)^a,b		20,474		21,087,962
7.00%, 02/15/21 (Call 02/15/18)^a,b		20,474		21,087,962
FMG Resources (August 2006) Pty Ltd.
6.00%, 04/01/17 (Call 04/01/15)^a,b		19,150		20,227,188
6.38%, 02/01/16 (Call 03/14/14)^a,b		12,900		13,332,150
6.88%, 02/01/18 (Call 03/31/14)^a,b		15,950		16,787,375
6.88%, 04/01/22 (Call 04/01/17)^a,b		17,300		18,770,500
7.00%, 11/01/15 (Call 03/14/14)^a,b		9,882		10,232,811
8.25%, 11/01/19 (Call 11/01/15)^a,b		22,920		25,326,600
Novelis Inc.
8.38%, 12/15/17 (Call 03/31/14)^a		17,600		18,771,942
8.75%, 12/15/20 (Call 12/15/15)^a		23,290		26,150,117
Steel Dynamics Inc.
5.25%, 04/15/23 (Call 04/15/18)		6,450		6,625,234


Security	Principal (000s)		Value

6.13%, 08/15/19 (Call 08/15/16)^a	$	7,750	$	8,497,512
United States Steel Corp.
6.05%, 06/01/17^a		8,500		9,210,274
7.00%, 02/01/18^a		8,290		9,160,450
7.38%, 04/01/20^a		9,650		10,512,304
7.50%, 03/15/22 (Call 03/15/17)^a		7,800		8,326,500
Walter Energy Inc.
8.50%, 04/15/21 (Call 04/15/17)^a		7,900		5,776,875
9.50%, 10/15/19 (Call 10/15/16)^a,b		8,525		8,610,250
9.88%, 12/15/20 (Call 12/15/16)^a		8,650		6,692,938

				507,244,539
MULTI-UTILITIES — 0.16%
Puget Energy Inc.
5.63%, 07/15/22 (Call 04/15/22)^a		6,427		7,282,526
6.00%, 09/01/21		7,575		8,749,081
6.50%, 12/15/20		4,560		5,394,390

				21,425,997
MULTILINE RETAIL — 0.31%
JC Penney Corp. Inc.
5.65%, 06/01/20		8,200		6,560,000
Neiman Marcus Group Inc. (The)
8.00%, 10/15/21 (Call 10/15/16)^a,b		14,800		15,836,000
Sears Holdings Corp.
6.63%, 10/15/18^a		21,045		19,887,525

				42,283,525
OFFICE ELECTRONICS — 0.18%
CDW LLC/CDW Finance Corp.
8.50%, 04/01/19 (Call 04/01/15)		21,260		23,386,000
12.54%, 10/12/17 (Call 03/31/14)^a		902		947,100

				24,333,100
OIL, GAS & CONSUMABLE FUELS — 12.79%
Access Midstream Partners LP/ACMP Finance Corp.
4.88%, 05/15/23 (Call 12/15/17)^a		24,100		24,644,450


108		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

5.88%, 04/15/21 (Call 04/15/15)	$	12,900	$	13,730,646
6.13%, 07/15/22 (Call 01/15/17)^a		13,380		14,467,492
Alpha Natural Resources Inc.
6.00%, 06/01/19 (Call 06/01/14)^a		13,115		11,206,162
6.25%, 06/01/21 (Call 06/01/16)^a		11,940		10,035,451
9.75%, 04/15/18^a		8,900		9,211,500
Antero Resources Finance Corp.
5.38%, 11/01/21 (Call 11/01/16)^b		11,300		11,506,533
6.00%, 12/01/20 (Call 12/01/15)^a		12,700		13,493,750
7.25%, 08/01/19 (Call 08/01/14)		1,090		1,171,750
Arch Coal Inc.
7.00%, 06/15/19 (Call 06/15/15)^a		16,450		13,670,600
7.25%, 10/01/20 (Call 10/01/15)^a		8,130		6,650,033
7.25%, 06/15/21 (Call 06/15/16)^a		17,500		14,175,000
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp.
4.75%, 11/15/21 (Call 05/15/16)		8,350		7,951,697
5.88%, 08/01/23 (Call 02/01/18)		13,675		13,435,757
6.63%, 10/01/20 (Call 10/01/16)^a		1,800		1,928,189
Berry Petroleum Co. LLC
6.38%, 09/15/22 (Call 03/15/17)		10,500		10,956,163
BreitBurn Energy Partners LP/BreitBurn Finance Corp.
7.88%, 04/15/22 (Call 01/15/17)^a		12,900		14,072,035
Chaparral Energy Inc.
7.63%, 11/15/22 (Call 05/15/17)^a		10,300		11,163,246


Security	Principal (000s)		Value

8.25%, 09/01/21 (Call 09/01/16)	$	7,970	$	8,710,932
Chesapeake Energy Corp.
3.25%, 03/15/16 (Call 03/31/14)^a		9,925		10,013,031
5.38%, 06/15/21 (Call 06/15/16)		14,050		15,056,833
5.75%, 03/15/23^a		20,250		21,698,649
6.13%, 02/15/21^a		19,580		21,727,115
6.50%, 08/15/17^a		11,250		12,731,746
6.63%, 08/15/20^a		25,500		29,085,606
7.25%, 12/15/18		14,345		16,811,334
9.50%, 02/15/15		11,656		12,547,926
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance Inc.
6.63%, 11/15/19 (Call 11/15/15)		11,660		12,300,214
Concho Resources Inc.
5.50%, 10/01/22 (Call 10/01/17)		11,450		12,033,321
5.50%, 04/01/23 (Call 10/01/17)		23,700		24,660,002
6.50%, 01/15/22 (Call 01/15/17)		10,030		10,909,518
7.00%, 01/15/21 (Call 01/15/16)^a		11,960		13,225,795
CONSOL Energy Inc.
8.00%, 04/01/17 (Call 04/01/14)		24,850		25,925,093
8.25%, 04/01/20 (Call 04/01/15)		20,710		22,473,885
Continental Resources Inc.
5.00%, 09/15/22 (Call 03/15/17)		1,496		1,567,060
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.
6.00%, 12/15/20 (Call 12/15/16)		3,615		3,773,844
6.13%, 03/01/22 (Call 11/01/16)^b		7,600		7,928,722


SCHEDULESOF INVESTMENTS			109

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

DCP Midstream LLC
5.85%, 05/21/43 (Call 05/21/23)^b,c	$	10,705	$	10,062,700
Denbury Resources Inc.
4.63%, 07/15/23 (Call 01/15/18)		20,550		19,357,023
6.38%, 08/15/21 (Call 08/15/16)		7,280		7,812,820
8.25%, 02/15/20 (Call 02/15/15)		16,590		18,097,903
El Paso LLC
7.00%, 06/15/17		17,015		19,232,177
7.25%, 06/01/18		9,650		11,051,368
8.25%, 02/15/16		3,800		4,124,714
Energy Transfer Equity LP
5.88%, 01/15/24^a		8,725		8,855,875
7.50%, 10/15/20		19,180		21,865,200
Energy XXI Gulf Coast Inc.
7.50%, 12/15/21 (Call 12/15/16)^b		9,890		10,320,514
9.25%, 12/15/17 (Call 12/15/14)		12,600		13,752,527
EP Energy LLC/EP Energy Finance Inc.
Series WI 9.38%, 05/01/20 (Call 05/01/16)		32,615		37,833,400
EP Energy LLC/Everest Acquisition Finance Inc. Series WI
6.88%, 05/01/19 (Call 05/01/15)		13,500		14,536,286
Halcon Resources Corp.
8.88%, 05/15/21 (Call 11/15/16)^a		23,850		23,875,229
9.25%, 02/15/22 (Call 08/15/17)^a,b		4,250		4,337,014
9.75%, 07/15/20 (Call 07/15/16)^a		14,695		15,413,386
9.75%, 07/15/20 (Call 07/15/16)^a,b		4,100		4,300,434
Kinder Morgan Finance Co. LLC
6.00%, 01/15/18^a,b		12,990		14,305,035


Security	Principal (000s)		Value

Kinder Morgan Finance Co. ULC
5.70%, 01/05/16^a	$	11,745	$	12,551,636
Kinder Morgan Inc.
5.00%, 02/15/21 (Call 01/15/21)^b		9,250		9,319,375
5.63%, 11/15/23 (Call 08/15/23)^a,b		10,700		10,766,875
Kodiak Oil & Gas Corp.
5.50%, 02/01/22 (Call 08/01/17)^a		7,850		8,040,711
8.13%, 12/01/19 (Call 12/01/15)		7,750		8,605,947
Laredo Petroleum Inc.
5.63%, 01/15/22 (Call 01/15/17)^b		3,825		3,901,500
7.38%, 05/01/22 (Call 05/01/17)^a		10,200		11,298,654
9.50%, 02/15/19 (Call 02/15/15)		11,500		12,767,123
Linn Energy LLC/Linn Energy Finance Corp.
6.50%, 05/15/19 (Call 05/15/15)^a		12,750		13,349,436
7.00%, 11/01/19 (Call 11/01/15)^a,b		30,600		31,770,970
7.75%, 02/01/21 (Call 09/15/15)		16,060		17,404,741
8.63%, 04/15/20 (Call 04/15/15)		16,845		18,327,045
MarkWest Energy Partners LP/MarkWest Energy Finance Corp.
4.50%, 07/15/23 (Call 04/15/23)^a		14,200		13,747,071
5.50%, 02/15/23 (Call 08/15/17)		12,475		12,879,648
6.25%, 06/15/22 (Call 12/15/16)		7,591		8,195,498
6.75%, 11/01/20 (Call 11/01/15)^a		9,765		10,638,974
MEG Energy Corp.
6.38%, 01/30/23 (Call 07/30/17)^b		8,750		8,992,453


110		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

6.50%, 03/15/21 (Call 03/15/15)^b	$	15,650	$	16,476,680
7.00%, 03/31/24 (Call 09/30/18)^a,b		15,025		15,755,322
Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC
9.25%, 06/01/21 (Call 06/01/16)		8,650		9,086,489
10.75%, 10/01/20 (Call 10/01/16)^a		10,764		11,812,583
Newfield Exploration Co.
5.63%, 07/01/24		16,150		16,889,615
5.75%, 01/30/22^a		14,000		15,008,595
6.88%, 02/01/20 (Call 02/01/15)^a		13,885		14,872,210
7.13%, 05/15/18 (Call 03/31/14)		3,706		3,839,581
NGPL PipeCo LLC
7.12%, 12/15/17^a,b		22,040		21,591,239
9.63%, 06/01/19 (Call 06/01/15)^a,b		10,350		10,999,952
Oasis Petroleum Inc.
6.50%, 11/01/21 (Call 11/01/16)		7,050		7,614,000
6.88%, 03/15/22 (Call 09/15/17)^a,b		14,975		16,322,750
6.88%, 01/15/23 (Call 07/15/17)		7,950		8,625,750
7.25%, 02/01/19 (Call 02/01/15)^a		7,015		7,523,588
Peabody Energy Corp.
6.00%, 11/15/18		24,650		26,595,467
6.25%, 11/15/21^a		22,078		22,925,521
6.50%, 09/15/20^a		10,570		11,217,420
7.38%, 11/01/16		11,996		13,530,402
Penn Virginia Corp.
8.50%, 05/01/20 (Call 05/01/17)^a		11,350		12,555,938
Penn Virginia Resource Partners LP/Penn Virginia Resource Finance Corp. II
6.50%, 05/15/21 (Call 05/15/16)		7,500		7,877,037


Security	Principal (000s)		Value

8.38%, 06/01/20 (Call 06/01/16)^a	$	10,534	$	11,758,578
QEP Resources Inc.
5.25%, 05/01/23 (Call 02/01/23)^a		11,450		11,337,102
5.38%, 10/01/22 (Call 07/01/22)^a		5,960		5,975,416
6.88%, 03/01/21		11,450		12,516,166
Range Resources Corp.
5.00%, 08/15/22 (Call 02/15/17)		11,000		11,292,657
5.00%, 03/15/23 (Call 03/15/18)		12,250		12,422,882
5.75%, 06/01/21 (Call 06/01/16)		8,500		9,130,081
6.75%, 08/01/20 (Call 08/01/15)		9,750		10,579,220
Regency Energy Partners LP/Regency Energy Finance Corp.
4.50%, 11/01/23 (Call 08/01/23)^a		12,000		11,188,075
5.50%, 04/15/23 (Call 10/15/17)^a		10,850		10,931,375
5.75%, 09/01/20 (Call 06/01/20)		6,650		6,943,875
5.88%, 03/01/22 (Call 01/01/22)		4,000		4,179,200
6.50%, 07/15/21 (Call 07/15/16)^a		10,000		10,825,000
6.88%, 12/01/18 (Call 12/01/14)		12,480		13,322,400
Rockies Express Pipeline LLC
3.90%, 04/15/15^b		8,700		8,749,663
5.63%, 04/15/20^a,b		14,840		14,250,975
6.00%, 01/15/19^b		8,975		8,888,229
6.85%, 07/15/18^a,b		8,650		8,853,784
Rosetta Resources Inc.
5.63%, 05/01/21 (Call 05/01/17)^a		4,600		4,721,542
5.88%, 06/01/22 (Call 12/01/17)		11,810		12,125,981


SCHEDULESOF INVESTMENTS			111

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

Sabine Pass Liquefaction LLC
5.63%, 04/15/23^a,b	$	14,350	$	14,053,430
5.88%, 02/01/21^a,b		33,650		34,407,125
6.25%, 03/15/22^b		9,600		9,859,115
Samson Investment Co.
10.75%, 02/15/20 (Call 02/15/16)^a,b		33,730		37,364,414
SandRidge Energy Inc.
7.50%, 03/15/21 (Call 03/15/16)^a		19,370		20,355,209
7.50%, 02/15/23 (Call 08/15/17)^a		13,650		14,366,625
8.13%, 10/15/22 (Call 04/15/17)^a		12,550		13,484,755
8.75%, 01/15/20 (Call 01/15/15)^a		8,875		9,584,685
SESI LLC
6.38%, 05/01/19 (Call 05/01/15)		7,750		8,258,171
7.13%, 12/15/21 (Call 12/15/16)		12,910		14,346,959
SM Energy Co.
5.00%, 01/15/24 (Call 07/15/18)^a,b		8,825		8,584,806
6.50%, 01/01/23 (Call 07/01/17)		7,777		8,316,373
Targa Resources Partners LP/Targa Resources Partners Finance Corp.
4.25%, 11/15/23 (Call 05/15/18)^a,b		11,050		10,351,802
5.25%, 05/01/23 (Call 11/01/17)		12,750		12,790,648
6.88%, 02/01/21 (Call 02/01/16)		9,900		10,687,209
Tesoro Corp.
4.25%, 10/01/17 (Call 09/01/17)^a		1,700		1,784,881
5.38%, 10/01/22 (Call 10/01/17)^a		10,675		10,987,084
Tesoro Logistics LP/Tesoro Logistics Finance Corp.
6.13%, 10/15/21 (Call 10/15/16)^a		4,400		4,602,926


Security	Principal (000s)		Value

Ultra Petroleum Corp.
5.75%, 12/15/18 (Call 12/15/15)^a,b	$	2,700	$	2,855,250
Whiting Petroleum Corp.
5.00%, 03/15/19 (Call 12/15/18)		20,250		21,414,375
5.75%, 03/15/21 (Call 12/15/20)		14,675		15,849,000
WPX Energy Inc.
5.25%, 01/15/17^a		2,800		3,006,251
6.00%, 01/15/22 (Call 10/15/21)^a		20,045		20,355,758

				1,737,121,533
PAPER & FOREST PRODUCTS — 0.07%
Verso Paper Holdings LLC/Verso Paper Inc.
11.75%, 01/15/19 (Call 01/15/15)^a		8,900		9,556,375

				9,556,375
PHARMACEUTICALS — 1.92%
Endo Finance Co.
5.75%, 01/15/22 (Call 01/15/17)^a,b		12,075		12,497,625
Endo Health Solutions Inc.
7.00%, 07/15/19 (Call 07/15/15)		9,700		10,524,500
7.00%, 12/15/20 (Call 12/15/15)^a		9,120		9,895,200
7.25%, 01/15/22 (Call 07/15/16)^a		7,900		8,690,000
Forest Laboratories Inc.
4.38%, 02/01/19^b		7,025		7,499,188
4.88%, 02/15/21^b		12,000		12,825,000
5.00%, 12/15/21^b		16,850		18,029,500
NBTY Inc.
9.00%, 10/01/18 (Call 10/01/14)		9,125		9,877,812
Valeant Pharmaceuticals International Inc.
5.63%, 12/01/21 (Call 12/01/16)^b		4,850		5,141,000
6.38%, 10/15/20 (Call 10/15/16)^a,b		36,850		40,258,625


112		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

6.75%, 10/01/17 (Call 10/01/14)^b	$	8,900	$	9,434,000
6.75%, 08/15/21 (Call 02/15/16)^a,b		13,020		14,175,525
6.88%, 12/01/18 (Call 12/01/14)^b		18,250		19,436,250
7.00%, 10/01/20 (Call 10/01/15)^b		14,085		15,370,256
7.25%, 07/15/22 (Call 07/15/16)^a,b		11,150		12,404,375
VPII Escrow Corp./Valeant Pharmaceuticals International Inc.
6.75%, 08/15/18 (Call 08/15/15)^b		22,300		24,530,000
7.50%, 07/15/21 (Call 07/15/16)^b		26,150		29,745,625

				260,334,481
PROFESSIONAL SERVICES — 0.09%
Jaguar Holding Co.
9.50%, 12/01/19 (Call 12/01/14)^a,b		11,461		12,821,994

				12,821,994
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.15%
CBRE Services Inc.
5.00%, 03/15/23 (Call 03/15/18)		12,875		12,939,375
Realogy Group LLC/Sunshine Group Florida Ltd. (The)
3.38%, 05/01/16^a,b		6,750		6,783,751

				19,723,126
ROAD & RAIL — 0.80%
Aviation Capital Group Corp.
3.88%, 09/27/16^b		8,100		8,383,500
6.75%, 04/06/21^b		13,690		14,990,550
7.13%, 10/15/20^b		5,215		5,853,837
Avis Budget Car Rental LLC/Avis Budget Finance Inc.
5.50%, 04/01/23 (Call 04/01/18)		4,350		4,388,063
8.25%, 01/15/19 (Call 10/15/14)		12,500		13,466,344


Security	Principal (000s)		Value

Hertz Corp. (The)
5.88%, 10/15/20 (Call 10/15/15)^a	$	12,650	$	13,472,247
6.25%, 10/15/22 (Call 10/15/17)^a		1,550		1,641,067
6.75%, 04/15/19 (Call 04/15/15)^a		20,600		22,089,924
7.38%, 01/15/21 (Call 01/15/16)		9,725		10,703,705
7.50%, 10/15/18 (Call 10/15/14)^a		13,200		14,113,963

				109,103,200
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.18%
Advanced Micro Devices Inc.
6.75%, 03/01/19^b		8,450		8,488,053
7.50%, 08/15/22^a		9,150		9,084,679
7.75%, 08/01/20 (Call 08/01/15)^a		8,800		9,053,000
8.13%, 12/15/17 (Call 03/31/14)^a		10,970		11,465,968
Amkor Technology Inc.
6.38%, 10/01/22 (Call 10/01/16)^a		6,575		6,788,687
6.63%, 06/01/21 (Call 06/01/15)^a		7,925		8,355,559
Freescale Semiconductor Inc.
5.00%, 05/15/21 (Call 05/15/16)^a,b		8,350		8,502,661
6.00%, 01/15/22 (Call 11/15/16)^a,b		13,740		14,556,277
8.05%, 02/01/20 (Call 06/01/15)^a		13,300		14,609,832
10.13%, 12/15/16 (Call 03/20/14)^a		1,278		1,305,158
10.75%, 08/01/20 (Call 08/01/15)^a		10,980		12,741,669
Micron Technology Inc.
5.88%, 02/15/22 (Call 02/15/17)^b		3,650		3,805,125
NXP BV/NXP Funding LLC
3.50%, 09/15/16^a,b		10,500		10,762,500
3.75%, 06/01/18^b		9,525		9,620,250


SCHEDULESOF INVESTMENTS			113

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

5.75%, 02/15/21 (Call 02/15/17)^a,b	$	10,075	$	10,679,500
5.75%, 03/15/23 (Call 03/15/18)^b		950		997,500
Sensata Technologies BV
4.88%, 10/15/23^b		9,473		9,283,540
6.50%, 05/15/19 (Call 05/15/15)^b		9,550		10,242,375

				160,342,333
SOFTWARE — 0.93%
Activision Blizzard Inc.
5.63%, 09/15/21 (Call 09/15/16)^a,b		26,800		28,739,106
6.13%, 09/15/23 (Call 09/15/18)^a,b		12,575		13,616,312
BMC Software Inc.
8.13%, 07/15/21 (Call 07/15/16)^b		24,675		25,939,594
Infor US Inc.
9.38%, 04/01/19 (Call 04/01/15)^a		16,900		19,097,000
11.50%, 07/15/18 (Call 07/15/15)		11,770		13,667,912
Nuance Communications Inc.
5.38%, 08/15/20 (Call 08/15/16)^a,b		18,150		18,150,000
NuStar Logistics LP
4.80%, 09/01/20		7,918		7,713,914

				126,923,838
SPECIALTY RETAIL — 1.60%
Best Buy Co. Inc.
5.00%, 08/01/18		8,700		8,993,625
5.50%, 03/15/21 (Call 12/15/20)^a		10,850		10,809,313
Claire’s Stores Inc.
8.88%, 03/15/19 (Call 03/15/15)^a		8,005		7,764,850
9.00%, 03/15/19 (Call 03/15/15)^a,b		19,500		20,475,000
L Brands Inc.
5.63%, 02/15/22		18,800		19,740,000
5.63%, 10/15/23^a		5,000		5,225,000
6.63%, 04/01/21^a		16,040		18,004,900


Security	Principal (000s)		Value

6.90%, 07/15/17	$	13,162	$	15,070,490
7.00%, 05/01/20^a		8,460		9,665,550
8.50%, 06/15/19^a		8,950		10,851,875
Michaels Stores Inc.
7.75%, 11/01/18 (Call 11/01/14)		16,655		17,862,487
Party City Holdings Inc. Series WI
8.88%, 08/01/20 (Call 08/01/15)^a		13,200		14,652,000
Petco Animal Supplies Inc.
9.25%, 12/01/18 (Call 03/31/14)^a,b		10,050		10,803,750
Sally Holdings LLC/Sally Capital Inc.
5.75%, 06/01/22 (Call 06/01/17)^a		14,450		15,317,000
6.88%, 11/15/19 (Call 11/15/15)^a		12,250		13,444,375
Toys R Us Inc.
10.38%, 08/15/17 (Call 02/15/15)^a		8,450		7,309,250
Toys R Us Property Co. II LLC
8.50%, 12/01/17 (Call 03/31/14)^a		10,975		11,276,812

				217,266,277
TEXTILES, APPAREL & LUXURY GOODS — 0.40%
Hanesbrands Inc.
6.38%, 12/15/20 (Call 12/15/15)^a		17,080		18,766,650
Levi Strauss & Co.
6.88%, 05/01/22 (Call 05/01/17)		12,000		13,170,000
7.63%, 05/15/20 (Call 05/15/15)^a		4,800		5,232,000
PVH Corp.
4.50%, 12/15/22 (Call 12/15/17)^a		11,425		11,310,750
7.38%, 05/15/20 (Call 05/15/15)		5,351		5,926,233

				54,405,633


114		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

TOBACCO — 1.65%
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC
5.75%, 10/15/20 (Call 10/15/15)	$	52,600	$	54,967,000
6.88%, 02/15/21 (Call 02/15/16)^a		16,700		18,140,375
7.13%, 04/15/19 (Call 10/15/14)		21,215		22,514,419
7.88%, 08/15/19 (Call 08/15/15)^a		24,510		27,052,912
8.25%, 02/15/21 (Call 02/15/16)^a		16,405		17,922,463
8.50%, 05/15/18 (Call 05/15/14)^a		14,860		15,640,150
9.00%, 04/15/19 (Call 10/15/14)^a		25,425		27,331,875
9.88%, 08/15/19 (Call 08/15/15)		36,021		40,523,625

				224,092,819
TRADING COMPANIES & DISTRIBUTORS — 2.75%
Aircastle Ltd.
4.63%, 12/15/18^a		7,300		7,556,274
6.25%, 12/01/19^a		5,950		6,440,875
6.75%, 04/15/17^a		9,000		10,056,281
9.75%, 08/01/18 (Call 08/01/14)^a		6,375		6,885,000
International Lease Finance Corp.
3.88%, 04/15/18		12,500		12,812,500
4.63%, 04/15/21		11,100		11,211,000
4.88%, 04/01/15		13,550		14,057,439
5.75%, 05/15/16^a		19,010		20,515,324
5.88%, 04/01/19^a		12,300		13,525,791
5.88%, 08/15/22^a		13,700		14,659,000
6.25%, 05/15/19^a		19,850		22,249,903
6.75%, 09/01/16^b		17,600		19,782,205
7.13%, 09/01/18^b		22,400		26,162,320
8.25%, 12/15/20		16,880		20,672,568
8.63%, 09/15/15		20,050		22,176,838
8.63%, 01/15/22		11,300		14,092,999
8.75%, 03/15/17		25,150		29,640,834
8.88%, 09/01/17^a		6,000		7,204,394


Security	Principal (000s)		Value

United Rentals (North America) Inc.
5.75%, 07/15/18 (Call 07/15/15)	$	13,600	$	14,576,386
6.13%, 06/15/23 (Call 12/15/17)^a		7,500		7,931,250
7.38%, 05/15/20 (Call 05/15/16)		11,100		12,382,565
7.63%, 04/15/22 (Call 04/15/17)		20,950		23,727,813
8.25%, 02/01/21 (Call 02/01/16)		12,295		13,831,875
8.38%, 09/15/20 (Call 09/15/15)^a		14,610		16,316,565
9.25%, 12/15/19 (Call 12/15/14)		4,460		4,899,283

				373,367,282
TRANSPORTATION INFRASTRUCTURE — 0.16%
CHC Helicopter SA
9.25%, 10/15/20 (Call 10/15/15)^a		20,003		21,750,488

				21,750,488
WIRELESS TELECOMMUNICATION SERVICES — 5.92%
Cricket Communications Inc.
7.75%, 10/15/20 (Call 10/15/15)		26,800		30,384,500
Crown Castle International Corp.
5.25%, 01/15/23^a		27,075		27,718,031
7.13%, 11/01/19 (Call 11/01/14)^a		10,750		11,475,625
MetroPCS Wireless Inc.
6.63%, 11/15/20 (Call 11/15/15)		20,420		21,874,925
7.88%, 09/01/18 (Call 09/01/14)^a		18,965		20,197,725
Millicom International Cellular SA
4.75%, 05/22/20 (Call 05/22/17)^b		7,978		7,758,605
6.63%, 10/15/21 (Call 10/15/17)^b		6,410		6,698,450


SCHEDULESOF INVESTMENTS			115

Schedule of Investments (Continued)

iSHARES^® iBOXX $ HIGH YIELD CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value

NII Capital Corp.
7.63%, 04/01/21 (Call 04/01/16)^a	$	20,550	$	7,552,125
8.88%, 12/15/19 (Call 12/15/14)^a		10,760		4,734,400
10.00%, 08/15/16 (Call 03/31/14)^a		11,260		5,151,450
NII International Telecom SCA
7.88%, 08/15/19 (Call 02/15/17)^a,b		12,200		8,479,000
11.38%, 08/15/19 (Call 02/15/17)^a,b		15,850		11,689,375
SBA Communications Corp.
5.63%, 10/01/19 (Call 10/01/16)^a		8,600		8,997,750
Sprint Communications Inc.
6.00%, 12/01/16^a		37,950		41,507,812
6.00%, 11/15/22^a		40,550		41,665,125
7.00%, 03/01/20^a,b		20,550		23,683,875
7.00%, 08/15/20^a		25,700		28,045,125
8.38%, 08/15/17^a		22,320		26,170,200
9.00%, 11/15/18^b		50,470		61,636,487
9.13%, 03/01/17^a		20,950		24,799,563
11.50%, 11/15/21^a		13,620		18,250,800
Sprint Corp.
7.13%, 06/15/24^a,b		39,300		41,363,250
7.25%, 09/15/21^b		37,600		41,172,000
7.88%, 09/15/23^b		68,850		76,251,375
T-Mobile USA Inc.
5.25%, 09/01/18 (Call 09/01/15)		12,950		13,662,250
6.13%, 01/15/22 (Call 01/15/18)^a		11,700		12,358,125
6.25%, 04/01/21 (Call 04/01/17)^a		34,950		37,396,500
6.46%, 04/28/19 (Call 04/28/15)^a		13,700		14,641,875
6.50%, 01/15/24 (Call 01/15/19)^a		14,925		15,820,500
6.54%, 04/28/20 (Call 04/28/16)		19,175		20,804,875
6.63%, 04/28/21 (Call 04/28/17)^a		26,525		28,746,469


Security	Principal or Shares (000s)		Value

6.63%, 04/01/23 (Call 04/01/18)^a	$	30,475	$	32,760,625
6.73%, 04/28/22 (Call 04/28/17)		25,450		27,486,000
6.84%, 04/28/23 (Call 04/28/18)^a		2,325		2,522,625

				803,457,417

TOTAL CORPORATE BONDS & NOTES
(Cost: $12,871,048,021)				13,277,187,480

SHORT-TERM INVESTMENTS — 18.72%

MONEY MARKET FUNDS — 18.72%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^e,f,g		2,272,835		2,272,835,305
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^e,f,g		191,149		191,149,347
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^e,f		78,243		78,242,595

				2,542,227,247

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,542,227,247)				2,542,227,247

TOTAL INVESTMENTS IN SECURITIES — 116.48%
(Cost: $15,413,275,268)				15,819,414,727
Other Assets, Less Liabilities — (16.48)%				(2,238,555,474	)

NET ASSETS — 100.00%			$	13,580,859,253

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c	Variable rate security. Rate shown is as of report date.

^d	Payment-in-kind (PIK) security. Income may be paid in cash or additional securities at the issuer’s discretion.

^e	Affiliated issuer. See Note 2.

^f	The rate quoted is the annualized seven-day yield of the fund at period end.

^g	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


116		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
CORPORATE BONDS & NOTES — 96.94%

AEROSPACE & DEFENSE — 1.82%
Boeing Co. (The)
4.88%, 02/15/20^a	$	4,277	$	4,841,847
General Dynamics Corp.
1.00%, 11/15/17		1,900		1,873,895
2.25%, 11/15/22 (Call 08/15/22)		15,685		14,530,109
Honeywell International Inc.
4.25%, 03/01/21		3,126		3,428,595
5.00%, 02/15/19		11,037		12,566,954
5.30%, 03/01/18		7,983		9,142,247
L-3 Communications Corp.
4.75%, 07/15/20		8,023		8,543,402
5.20%, 10/15/19^a		9,715		10,716,130
Lockheed Martin Corp.
3.35%, 09/15/21^a		22,179		22,631,330
4.07%, 12/15/42		8,000		7,438,770
4.25%, 11/15/19		1,872		2,039,861
Northrop Grumman Corp.
1.75%, 06/01/18		4,086		4,055,605
3.25%, 08/01/23		17,235		16,521,173
4.75%, 06/01/43^a		7,750		7,723,331
Precision Castparts Corp.
1.25%, 01/15/18		18,254		18,025,073
2.50%, 01/15/23 (Call 10/15/22)		4,125		3,863,107
Raytheon Co.
2.50%, 12/15/22 (Call 09/15/22)		1,500		1,406,045
3.13%, 10/15/20		19,845		20,337,525
United Technologies Corp.
1.80%, 06/01/17		14,922		15,251,754
3.10%, 06/01/22		25,087		25,161,523
4.50%, 04/15/20		16,415		18,216,440
4.50%, 06/01/42		39,164		39,771,590
5.38%, 12/15/17		9,888		11,335,105
5.70%, 04/15/40		5,355		6,385,420
6.13%, 02/01/19		5,638		6,715,097
6.13%, 07/15/38^a		12,041		15,083,009

				307,604,937


Security	Principal (000s)		Value
AIR FREIGHT & LOGISTICS — 0.49%
FedEx Corp.
4.00%, 01/15/24	$	12,651	$	12,853,626
5.10%, 01/15/44		10,000		10,315,474
United Parcel Service Inc.
2.45%, 10/01/22^a		15,650		14,854,434
3.13%, 01/15/21^a		7,536		7,747,367
5.13%, 04/01/19		18,874		21,644,222
5.50%, 01/15/18		1,269		1,456,594
6.20%, 01/15/38		10,910		13,785,616

				82,657,333
AUTOMOBILES — 0.22%
Ford Motor Co.
4.75%, 01/15/43^a		19,388		18,641,448
7.45%, 07/16/31		14,475		18,587,906

				37,229,354
BEVERAGES — 3.15%
Anheuser-Busch InBev Finance Inc.
1.25%, 01/17/18		13,500		13,357,825
2.15%, 02/01/19		13,000		13,104,334
2.63%, 01/17/23		6,500		6,170,127
3.70%, 02/01/24		20,750		21,092,732
4.00%, 01/17/43		12,380		11,430,487
4.63%, 02/01/44		9,000		9,178,946
Anheuser-Busch InBev Worldwide Inc.
1.38%, 07/15/17		14,950		15,027,339
2.50%, 07/15/22		9,917		9,413,982
3.75%, 07/15/42		11,281		9,995,055
5.00%, 04/15/20		16,352		18,550,217
5.38%, 01/15/20		30,988		35,789,448
6.88%, 11/15/19		9,027		11,128,176
7.75%, 01/15/19		19,728		24,691,800
8.20%, 01/15/39		9,980		15,135,266
Bottling Group LLC
5.13%, 01/15/19		12,037		13,715,008
Coca-Cola Co. (The)
1.15%, 04/01/18		17,000		16,776,919
1.65%, 03/14/18		6,478		6,516,703
1.65%, 11/01/18		17,500		17,469,305
2.45%, 11/01/20		15,645		15,583,506
3.15%, 11/15/20		9,597		9,947,730


SCHEDULESOF INVESTMENTS			117

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
3.20%, 11/01/23	$	20,500	$	20,193,279
3.30%, 09/01/21		23,003		23,738,270
5.35%, 11/15/17		3,800		4,348,417
Diageo Capital PLC
1.50%, 05/11/17		7,525		7,590,547
2.63%, 04/29/23 (Call 01/29/23)		10,636		9,946,813
5.75%, 10/23/17		9,797		11,246,203
Diageo Investment Corp.
2.88%, 05/11/22		10,204		9,927,962
Pepsi Bottling Group Inc. (The) Series B
7.00%, 03/01/29		8,285		10,918,026
PepsiCo Inc.
1.25%, 08/13/17		9,564		9,561,554
2.25%, 01/07/19 (Call 12/07/18)		4,600		4,652,093
2.75%, 03/05/22		11,929		11,583,878
2.75%, 03/01/23		21,225		20,137,308
3.00%, 08/25/21		5,496		5,531,344
3.13%, 11/01/20		11,581		11,879,066
3.60%, 03/01/24 (Call 12/01/23)		12,000		12,030,035
4.00%, 03/05/42		8,700		7,993,830
4.50%, 01/15/20		11,534		12,801,311
4.88%, 11/01/40		5,885		6,171,885
5.00%, 06/01/18		6,635		7,501,943
5.50%, 01/15/40		9,785		11,060,030
7.90%, 11/01/18		14,804		18,663,498

				531,552,197
BIOTECHNOLOGY — 1.21%
Amgen Inc.
2.13%, 05/15/17		13,191		13,537,095
3.45%, 10/01/20		14,500		15,097,356
3.63%, 05/15/22 (Call 02/15/22)^a		5,650		5,774,513
3.88%, 11/15/21 (Call 08/15/21)		13,275		13,959,114
4.10%, 06/15/21 (Call 03/15/21)^a		15,445		16,512,432
5.15%, 11/15/41 (Call 05/15/41)^a		26,632		27,825,747


Security	Principal (000s)		Value
5.38%, 05/15/43 (Call 11/15/42)^a	$	10,450	$	11,351,458
5.65%, 06/15/42 (Call 12/15/41)^a		7,500		8,366,042
5.70%, 02/01/19		9,983		11,640,997
5.85%, 06/01/17		3,380		3,855,314
6.38%, 06/01/37^a		11,339		13,661,326
6.40%, 02/01/39		12,173		14,730,153
Celgene Corp.
3.25%, 08/15/22		13,650		13,368,029
Gilead Sciences Inc.
4.40%, 12/01/21 (Call 09/01/21)		15,810		17,176,982
4.50%, 04/01/21 (Call 01/01/21)		2,184		2,393,195
5.65%, 12/01/41 (Call 06/01/41)		13,255		15,353,374

				204,603,127
CAPITAL MARKETS — 6.75%
Ameriprise Financial Inc.
4.00%, 10/15/23		5,110		5,208,100
5.30%, 03/15/20		6,000		6,880,610
Bank of New York Mellon Corp. (The)
2.10%, 01/15/19 (Call 12/15/18)		5,668		5,682,235
3.55%, 09/23/21 (Call 08/23/21)		16,920		17,583,555
3.65%, 02/04/24 (Call 01/05/24)		6,000		6,090,366
Bear Stearns Companies Inc. (The)/J.P. Morgan Chase & Co.
6.40%, 10/02/17^a		24,855		28,894,628
7.25%, 02/01/18		20,617		24,729,628
Deutsche Bank AG London
2.50%, 02/13/19		8,000		8,076,173
6.00%, 09/01/17		33,799		38,735,117
Goldman Sachs Group Inc. (The)
2.38%, 01/22/18		25,517		25,900,740
2.90%, 07/19/18		35,589		36,560,448
3.63%, 01/22/23^a		31,845		31,448,542


118		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
4.00%, 03/03/24	$	3,425	$	3,441,934
5.25%, 07/27/21		39,396		43,901,027
5.38%, 03/15/20		12,632		14,258,066
5.75%, 01/24/22		43,418		49,602,946
5.95%, 01/18/18		23,527		26,884,122
5.95%, 01/15/27		5,175		5,657,549
6.00%, 06/15/20		15,625		18,110,742
6.13%, 02/15/33^a		14,080		16,425,097
6.15%, 04/01/18		39,980		46,071,049
6.25%, 09/01/17		30,670		35,251,981
6.25%, 02/01/41		26,832		32,096,245
6.45%, 05/01/36		5,729		6,376,201
6.75%, 10/01/37		49,514		57,060,869
7.50%, 02/15/19		19,250		23,566,189
Jefferies Group LLC
5.13%, 04/13/18		16,419		18,025,985
6.88%, 04/15/21		432		504,109
Merrill Lynch & Co. Inc.
5.70%, 05/02/17		5,000		5,578,898
Morgan Stanley
2.13%, 04/25/18		1,750		1,760,570
2.50%, 01/24/19^a		36,350		36,558,853
3.75%, 02/25/23^a		39,820		39,796,096
4.10%, 05/22/23		35,490		35,314,019
4.75%, 03/22/17		24,425		26,792,413
4.88%, 11/01/22		8,130		8,596,894
5.00%, 11/24/25		23,595		24,536,589
5.50%, 01/26/20^a		21,133		24,062,347
5.50%, 07/24/20^a		10,575		12,039,335
5.50%, 07/28/21^a		23,536		26,793,319
5.63%, 09/23/19		30,562		35,135,356
5.75%, 01/25/21		28,534		32,801,340
5.95%, 12/28/17		11,285		12,929,755
6.25%, 08/28/17		10,736		12,374,036
6.38%, 07/24/42^a		16,037		19,763,452
6.63%, 04/01/18		34,980		41,136,050
7.25%, 04/01/32^a		2,362		3,059,215
7.30%, 05/13/19		35,755		43,796,907
Series F
5.55%, 04/27/17^a		15,730		17,626,984
Nomura Holdings Inc.
6.70%, 03/04/20		13,748		16,089,731
Northern Trust Corp.
3.95%, 10/30/25		6,500		6,594,778


Security	Principal (000s)		Value
State Street Corp.
3.10%, 05/15/23	$	8,000	$	7,619,249
3.70%, 11/20/23		6,680		6,799,818
4.38%, 03/07/21		8,915		9,825,232

				1,140,405,489
CHEMICALS — 1.92%
CF Industries Inc.
3.45%, 06/01/23		14,000		13,307,624
4.95%, 06/01/43^a		10,495		10,025,275
6.88%, 05/01/18		100		116,520
Dow Chemical Co. (The)
3.00%, 11/15/22 (Call 08/15/22)		1,350		1,287,742
4.13%, 11/15/21 (Call 08/15/21)^a		18,066		18,954,303
4.25%, 11/15/20 (Call 08/15/20)		15,408		16,461,907
4.38%, 11/15/42 (Call 05/15/42)		10,250		9,392,529
5.25%, 11/15/41 (Call 05/15/41)		8,645		8,954,594
7.38%, 11/01/29		8,235		10,628,775
8.55%, 05/15/19		21,700		28,074,486
9.40%, 05/15/39		8,509		13,212,721
E.I. du Pont de Nemours and Co.
2.80%, 02/15/23		13,597		12,882,805
3.63%, 01/15/21		8,500		8,863,698
4.15%, 02/15/43		6,175		5,837,288
4.63%, 01/15/20		11,823		13,158,317
6.00%, 07/15/18		14,631		17,109,720
Eastman Chemical Co.
2.40%, 06/01/17		18,350		18,859,235
3.60%, 08/15/22 (Call 05/15/22)		5,838		5,806,212
Ecolab Inc.
4.35%, 12/08/21		9,488		10,206,040
5.50%, 12/08/41		7,598		8,506,871
LYB International Finance BV
4.00%, 07/15/23		11,190		11,386,944
5.25%, 07/15/43^a		9,750		10,266,750
LyondellBasell Industries NV
5.00%, 04/15/19 (Call 01/15/19)		21,000		23,422,342


SCHEDULESOF INVESTMENTS			119

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
5.75%, 04/15/24 (Call 01/15/24)^a	$	10,900	$	12,504,874
6.00%, 11/15/21 (Call 08/17/21)		8,472		9,971,314
Mosaic Co. (The)
4.25%, 11/15/23 (Call 08/15/23)^a		11,000		11,160,757
Rohm and Haas Co.
6.00%, 09/15/17		1,167		1,339,632
7.85%, 07/15/29^a		10,075		13,469,917

				325,169,192
COMMERCIAL BANKS — 10.62%
Abbey National Treasury Services PLC
3.05%, 08/23/18		3,827		3,977,830
Australia and New Zealand Banking Group Ltd.
1.88%, 10/06/17^a		12,000		12,137,063
Bank of America N.A.
5.30%, 03/15/17		20,500		22,784,301
6.00%, 10/15/36		6,895		8,171,355
Bank of Montreal
1.40%, 09/11/17^a		9,700		9,690,300
1.45%, 04/09/18 (Call 03/09/18)		11,600		11,455,609
2.38%, 01/25/19 (Call 12/25/18)		8,950		9,100,309
2.55%, 11/06/22 (Call 10/06/22)		13,200		12,444,111
Bank of Nova Scotia
1.38%, 12/18/17 (Call 11/18/17)		3,500		3,478,469
1.45%, 04/25/18^a		18,000		17,758,800
2.05%, 10/30/18		10,000		10,026,623
2.55%, 01/12/17		13,246		13,794,741
4.38%, 01/13/21		3,424		3,766,401
Barclays Bank PLC
2.50%, 02/20/19^a		15,600		15,755,367
5.13%, 01/08/20^a		9,205		10,414,728
5.14%, 10/14/20^a		17,434		18,889,519
6.75%, 05/22/19		19,664		23,774,887
BB&T Corp.
1.60%, 08/15/17 (Call 07/14/17)		6,448		6,491,290


Security	Principal (000s)		Value
2.15%, 03/22/17 (Call 02/22/17)	$	2,835	$	2,915,447
BNP Paribas SA
2.38%, 09/14/17^a		24,664		25,367,476
2.40%, 12/12/18^a		15,000		15,121,017
2.70%, 08/20/18		7,780		7,974,511
3.25%, 03/03/23^a		5,625		5,449,940
5.00%, 01/15/21^a		33,620		37,537,144
BPCE SA
2.50%, 12/10/18		20,500		20,544,198
Branch Banking & Trust Co.
2.30%, 10/15/18 (Call 09/15/18)^a		15,500		15,739,844
Commonwealth Bank of Australia
1.90%, 09/18/17^a		9,675		9,800,199
Credit Suisse New York
4.38%, 08/05/20^a		12,380		13,511,427
5.30%, 08/13/19^a		18,652		21,394,452
5.40%, 01/14/20^a		12,352		13,963,984
6.00%, 02/15/18^a		12,008		13,893,256
Discover Bank
2.00%, 02/21/18		8,250		8,236,819
4.20%, 08/08/23		8,000		8,210,468
Fifth Third Bancorp
4.30%, 01/16/24 (Call 12/16/23)		520		525,574
8.25%, 03/01/38		14,413		20,262,141
HSBC Bank (USA) N.A.
4.88%, 08/24/20		5,510		6,032,219
5.63%, 08/15/35^a		1,493		1,637,654
5.88%, 11/01/34		4,000		4,506,218
HSBC Holdings PLC
4.00%, 03/30/22		19,563		20,253,556
4.88%, 01/14/22		14,000		15,351,606
5.10%, 04/05/21^a		27,155		30,431,829
6.10%, 01/14/42		9,525		11,678,226
6.50%, 05/02/36		22,425		26,750,345
6.50%, 09/15/37		29,204		34,996,964
6.80%, 06/01/38		17,690		21,866,535
HSBC USA Inc.
1.63%, 01/16/18		16,295		16,236,115
2.63%, 09/24/18		2,000		2,053,440
5.00%, 09/27/20^a		3,000		3,276,654


120		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
Intesa Sanpaolo SpA
3.88%, 01/16/18	$	13,390	$	13,852,580
3.88%, 01/15/19^a		12,000		12,252,618
5.25%, 01/12/24		19,675		20,338,069
J.P. Morgan Chase Bank N.A.
6.00%, 10/01/17		30,230		34,724,902
KeyBank N.A.
1.65%, 02/01/18		9,000		8,960,582
KeyCorp
2.30%, 12/13/18 (Call 11/13/18)		10,000		10,042,190
5.10%, 03/24/21^a		10,201		11,422,149
Lloyds Bank PLC
2.30%, 11/27/18		11,830		11,909,625
6.38%, 01/21/21		7,133		8,591,807
Murray Street Investment Trust I
4.65%, 03/09/17^b		16,150		17,540,240
National Australia Bank Ltd.
2.30%, 07/25/18^a		7,000		7,098,155
2.75%, 03/09/17		11,500		12,013,378
3.00%, 01/20/23^a		9,134		8,708,888
Perrigo Co. PLC
4.00%, 11/15/23 (Call 08/15/23)^c		7,500		7,557,573
PNC Bank N.A.
2.20%, 01/28/19 (Call 12/29/18)^d		3,525		3,552,652
2.70%, 11/01/22 (Call 10/01/22)^d		15,250		14,329,353
2.95%, 01/30/23 (Call 12/30/22)^d		5,000		4,766,868
3.80%, 07/25/23 (Call 06/25/23)^a,d		17,100		17,242,566
PNC Funding Corp.
3.30%, 03/08/22 (Call 02/06/22)^d		7,069		7,088,097
4.38%, 08/11/20^d		3,523		3,872,955
5.13%, 02/08/20^d		3,769		4,294,313
Rabobank Nederland
1.70%, 03/19/18^a		18,400		18,366,762
2.25%, 01/14/19		20,000		20,093,198
3.88%, 02/08/22		28,435		29,338,229
3.95%, 11/09/22^a		15,500		15,303,207
4.50%, 01/11/21^a		16,043		17,397,955


Security	Principal (000s)		Value
4.63%, 12/01/23	$	19,250	$	19,774,349
5.25%, 05/24/41^a		20,455		22,080,354
5.75%, 12/01/43^a		6,000		6,499,573
Royal Bank of Canada
1.50%, 01/16/18^a		11,500		11,456,240
2.20%, 07/27/18		24,046		24,395,852
Royal Bank of Scotland Group PLC
5.63%, 08/24/20^a		5,931		6,739,761
6.13%, 01/11/21^a		11,077		12,959,993
6.40%, 10/21/19		16,412		19,029,085
Societe Generale SA
2.63%, 10/01/18		10,500		10,672,592
2.75%, 10/12/17^a		10,750		11,125,847
Sumitomo Mitsui Banking Corp.
1.50%, 01/18/18^a		6,750		6,680,538
1.80%, 07/18/17		14,000		14,146,894
2.45%, 01/10/19		11,000		11,149,844
3.20%, 07/18/22		6,099		6,023,374
SunTrust Banks Inc.
2.35%, 11/01/18 (Call 10/01/18)		13,385		13,504,183
Svenska Handelsbanken AB
1.63%, 03/21/18		14,050		13,918,187
2.50%, 01/25/19^a		6,750		6,847,097
2.88%, 04/04/17		11,186		11,716,626
Toronto-Dominion Bank (The)
1.40%, 04/30/18		15,720		15,512,994
2.63%, 09/10/18		12,875		13,308,651
U.S. Bancorp
1.65%, 05/15/17 (Call 04/15/17)		15,200		15,505,447
1.95%, 11/15/18 (Call 10/15/18)		7,455		7,509,304
2.95%, 07/15/22 (Call 06/15/22)		22,087		21,211,708
3.00%, 03/15/22 (Call 02/15/22)		3,087		3,067,660
3.70%, 01/30/24 (Call 12/29/23)		3,000		3,063,243
4.13%, 05/24/21 (Call 04/23/21)		10,649		11,491,427
UBS AG Stamford
4.88%, 08/04/20		18,325		20,491,360


SCHEDULESOF INVESTMENTS			121

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
5.75%, 04/25/18	$	18,286	$	21,059,070
5.88%, 12/20/17		23,283		26,816,929
Wachovia Bank N.A./Wells Fargo & Co.
5.85%, 02/01/37		9,500		11,377,071
6.00%, 11/15/17		11,272		13,017,626
6.60%, 01/15/38		20,604		26,933,868
Wachovia Corp./Wells Fargo & Co.
5.50%, 08/01/35		11,903		12,952,736
5.75%, 06/15/17		20,395		23,303,203
5.75%, 02/01/18		27,293		31,533,702
Wells Fargo & Co.
1.50%, 01/16/18		34,833		34,778,427
2.10%, 05/08/17		12,850		13,238,682
2.15%, 01/15/19^a		5,000		5,035,593
3.00%, 01/22/21		15,000		15,144,968
3.50%, 03/08/22		19,123		19,547,141
4.13%, 08/15/23		19,500		19,916,602
4.60%, 04/01/21		16,831		18,705,112
5.38%, 02/07/35		550		617,032
5.38%, 11/02/43		27,250		29,061,645
5.61%, 01/15/44		14,144		15,599,058
5.63%, 12/11/17		23,934		27,495,970
Series M
3.45%, 02/13/23		32,425		31,727,435
Wells Fargo Bank N.A.
5.95%, 08/26/36		200		241,167
Westpac Banking Corp.
1.60%, 01/12/18^a		7,000		6,985,579
2.00%, 08/14/17		11,500		11,717,603
2.25%, 07/30/18		5,795		5,869,235
2.25%, 01/17/19		22,000		22,058,373
4.88%, 11/19/19		18,280		20,502,078

				1,795,207,960
COMMERCIAL SERVICES & SUPPLIES — 0.38%
Republic Services Inc.
3.55%, 06/01/22 (Call 03/01/22)		5,300		5,292,507
5.00%, 03/01/20^a		14,107		15,756,522
Unilever Capital Corp.
2.20%, 03/06/19		12,000		12,097,488
4.25%, 02/10/21		19,513		21,312,953


Security	Principal (000s)		Value
4.80%, 02/15/19	$	6,814	$	7,704,959
5.90%, 11/15/32		2,020		2,565,814

				64,730,243
COMMUNICATIONS EQUIPMENT — 0.77%
CC Holdings GS V LLC/Crown Castle GS III Corp.
3.85%, 04/15/23		1,000		980,848
Cisco Systems Inc.
2.13%, 03/01/19		5,000		5,034,323
2.90%, 03/04/21		1,100		1,110,299
3.15%, 03/14/17^a		11,299		12,023,502
3.63%, 03/04/24		7,000		7,055,805
4.45%, 01/15/20		33,678		37,417,056
4.95%, 02/15/19		17,853		20,290,140
5.50%, 01/15/40		23,963		27,073,412
5.90%, 02/15/39		16,525		19,485,383

				130,470,768
COMPUTERS & PERIPHERALS — 1.71%
Apple Inc.
1.00%, 05/03/18		33,000		32,247,214
2.40%, 05/03/23^a		62,250		57,542,176
3.85%, 05/04/43		27,177		23,744,972
EMC Corp.
1.88%, 06/01/18		9,508		9,530,440
2.65%, 06/01/20		25,750		25,834,465
3.38%, 06/01/23 (Call 03/01/23)		17,755		17,579,460
Hewlett-Packard Co.
2.60%, 09/15/17		16,600		17,165,499
2.75%, 01/14/19		19,400		19,706,830
3.75%, 12/01/20		6,490		6,660,218
4.30%, 06/01/21^a		11,510		12,020,975
4.38%, 09/15/21		5,823		6,090,373
4.65%, 12/09/21^a		22,147		23,565,517
5.50%, 03/01/18^a		8,780		9,949,984
6.00%, 09/15/41		9,680		10,333,378
Seagate HDD Cayman
3.75%, 11/15/18^c		7,000		7,218,750
4.75%, 06/01/23^c		10,750		10,481,250

				289,671,501
CONSUMER FINANCE — 2.69%
American Express Bank FSB
6.00%, 09/13/17		11,737		13,540,421


122		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
American Express Co.
1.55%, 05/22/18	$	2,887	$	2,857,805
2.65%, 12/02/22^a		19,900		18,889,205
4.05%, 12/03/42		11,046		10,137,986
6.15%, 08/28/17		18,565		21,551,834
7.00%, 03/19/18		18,882		22,739,457
American Express Credit Corp.
2.13%, 07/27/18		8,362		8,463,088
2.38%, 03/24/17		9,250		9,570,794
American Honda Finance Corp.
2.13%, 10/10/18		8,500		8,617,928
Capital One Bank (USA) N.A.
2.25%, 02/13/19		5,000		5,012,387
3.38%, 02/15/23		8,790		8,552,439
8.80%, 07/15/19		7,340		9,462,671
Capital One Financial Corp.
4.75%, 07/15/21		14,750		16,123,313
6.75%, 09/15/17^a		4,967		5,829,231
Caterpillar Financial Services Corp.
5.45%, 04/15/18		1,427		1,631,922
7.15%, 02/15/19		7,714		9,510,081
Ford Motor Credit Co. LLC
2.38%, 01/16/18		21,500		21,794,606
2.88%, 10/01/18^a		3,175		3,255,010
3.00%, 06/12/17^a		6,404		6,683,663
4.25%, 02/03/17		3,908		4,209,892
4.25%, 09/20/22^a		12,495		12,942,923
4.38%, 08/06/23^a		9,180		9,488,448
5.00%, 05/15/18		13,121		14,582,043
5.75%, 02/01/21		10,505		12,028,194
5.88%, 08/02/21		26,858		30,992,405
6.63%, 08/15/17		9,008		10,437,777
8.13%, 01/15/20		23,108		29,280,630
HSBC Finance Corp.
6.68%, 01/15/21		34,857		40,839,514
John Deere Capital Corp.
1.95%, 12/13/18		3,259		3,275,821
Toyota Motor Credit Corp.
1.25%, 10/05/17		9,900		9,861,093
1.75%, 05/22/17		2,100		2,140,950
2.00%, 10/24/18		27,400		27,612,128
2.10%, 01/17/19		5,250		5,290,950
3.30%, 01/12/22		16,714		17,052,380


Security	Principal (000s)		Value
3.40%, 09/15/21	$	9,889	$	10,207,030
4.25%, 01/11/21		5,000		5,475,825
Series B
4.50%, 06/17/20		4,304		4,810,280

				454,752,124
DIVERSIFIED FINANCIAL SERVICES — 12.01%
Associates Corp. of North America
6.95%, 11/01/18		442		529,571
Bank of America Corp.
2.00%, 01/11/18		18,255		18,342,732
2.60%, 01/15/19		16,206		16,409,051
3.30%, 01/11/23^a		27,074		26,389,125
3.88%, 03/22/17		7,264		7,792,350
4.10%, 07/24/23		20,600		21,177,097
4.13%, 01/22/24		7,441		7,605,011
5.00%, 05/13/21		19,950		22,164,683
5.00%, 01/21/44^a		12,500		13,073,088
5.42%, 03/15/17		780		862,961
5.63%, 07/01/20		24,045		27,694,394
5.65%, 05/01/18		34,070		38,902,836
5.70%, 01/24/22^a		20,979		24,234,230
5.75%, 12/01/17		37,450		42,655,921
5.88%, 01/05/21^a		14,390		16,834,674
5.88%, 02/07/42^a		16,681		19,469,031
6.00%, 09/01/17^a		17,315		19,790,905
6.11%, 01/29/37		16,940		19,058,444
6.40%, 08/28/17		13,780		15,921,310
6.88%, 04/25/18		58,015		69,072,003
6.88%, 11/15/18		1,213		1,462,218
7.63%, 06/01/19		16,215		20,187,573
7.75%, 05/14/38		10,048		13,476,727
BP Capital Markets PLC
1.38%, 11/06/17^a		10,150		10,122,203
1.38%, 05/10/18		11,900		11,709,482
1.85%, 05/05/17		10,585		10,794,486
2.24%, 09/26/18		4,500		4,566,256
2.24%, 05/10/19		13,350		13,417,396
2.50%, 11/06/22		3,000		2,794,256
2.75%, 05/10/23^a		14,590		13,631,399
3.25%, 05/06/22		25,453		25,302,501
3.56%, 11/01/21		15,000		15,468,776
3.81%, 02/10/24		15,000		15,143,546


SCHEDULESOF INVESTMENTS			123

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
3.99%, 09/26/23	$	2,000	$	2,055,520
4.50%, 10/01/20		15,457		17,004,111
4.74%, 03/11/21^a		14,317		15,924,344
4.75%, 03/10/19		8,587		9,660,857
Citigroup Inc.
1.75%, 05/01/18		9,400		9,289,409
2.50%, 09/26/18^a		10,246		10,368,003
3.38%, 03/01/23^a		17,500		17,009,319
3.50%, 05/15/23^a		15,750		14,984,659
3.88%, 10/25/23^a		13,215		13,248,525
4.05%, 07/30/22		15,800		16,056,611
4.50%, 01/14/22		28,683		30,607,701
5.38%, 08/09/20		29,312		33,282,583
5.50%, 02/15/17		5,595		6,205,356
5.50%, 09/13/25		14,950		16,133,103
5.88%, 02/22/33		5,550		5,934,070
5.88%, 01/30/42		21,683		25,177,111
6.00%, 08/15/17		17,321		19,803,664
6.13%, 11/21/17		34,984		40,438,376
6.13%, 05/15/18^a		24,550		28,454,970
6.13%, 08/25/36		16,410		18,142,016
6.63%, 06/15/32		7,250		8,363,670
6.68%, 09/13/43		7,000		8,277,641
6.88%, 03/05/38		10,384		13,344,053
8.13%, 07/15/39		25,605		37,255,482
8.50%, 05/22/19^a		36,634		47,163,883
CME Group Inc.
5.30%, 09/15/43 (Call 03/15/43)		10,518		11,611,913
Daimler Finance North America LLC
8.50%, 01/18/31		15,540		23,116,525
Deutsche Telekom International Finance BV
6.00%, 07/08/19		9,061		10,655,465
6.75%, 08/20/18		7,082		8,451,692
8.75%, 06/15/30		35,200		50,615,618
General Electric Capital Corp.
1.63%, 04/02/18^a		15,000		15,005,903
2.30%, 04/27/17		16,388		16,956,005
2.30%, 01/14/19^a		7,631		7,763,076
3.10%, 01/09/23^a		20,917		20,478,084
3.15%, 09/07/22		23,700		23,298,524
4.38%, 09/16/20		1,621		1,778,597


Security	Principal (000s)		Value
4.63%, 01/07/21	$	24,880	$	27,522,853
4.65%, 10/17/21		21,045		23,233,335
5.30%, 02/11/21		24,230		27,362,348
5.40%, 02/15/17^a		2,000		2,248,862
5.50%, 01/08/20		20,660		23,941,723
5.63%, 09/15/17		11,430		13,093,409
5.63%, 05/01/18^a		28,990		33,466,702
5.88%, 01/14/38		45,172		53,594,215
6.00%, 08/07/19		12,974		15,386,725
6.15%, 08/07/37		9,350		11,343,787
6.88%, 01/10/39		32,638		43,057,316
Series A
5.55%, 05/04/20		390		454,676
6.75%, 03/15/32		46,222		59,063,280
Goldman Sachs Capital I
6.35%, 02/15/34^a		23,875		24,934,453
IntercontinentalExchange Group Inc.
4.00%, 10/15/23		8,000		8,297,610
J.P. Morgan Chase & Co.
1.63%, 05/15/18^a		8,200		8,112,196
1.80%, 01/25/18^a		9,555		9,574,071
2.00%, 08/15/17		24,462		24,822,800
3.20%, 01/25/23		36,638		35,573,087
3.25%, 09/23/22		21,178		20,855,180
3.38%, 05/01/23^a		19,405		18,432,196
3.88%, 02/01/24^a		5,250		5,307,325
4.25%, 10/15/20		36,790		39,591,106
4.35%, 08/15/21		20,870		22,414,405
4.40%, 07/22/20		16,025		17,446,852
4.50%, 01/24/22		31,663		34,285,067
4.63%, 05/10/21		23,833		26,099,506
4.85%, 02/01/44		9,000		9,249,326
4.95%, 03/25/20		1,817		2,038,328
5.40%, 01/06/42		12,450		13,791,866
5.50%, 10/15/40		8,486		9,472,354
5.60%, 07/15/41		13,940		15,811,851
5.63%, 08/16/43^a		7,500		8,187,185
6.00%, 01/15/18		35,842		41,378,779
6.13%, 06/27/17		5,827		6,678,135
6.30%, 04/23/19		19,785		23,481,305
6.40%, 05/15/38		19,520		24,229,670
NYSE Euronext
2.00%, 10/05/17		5,000		5,105,037

				2,028,911,596


124		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
DIVERSIFIED TELECOMMUNICATION SERVICES — 6.65%
AT&T Corp.
8.00%, 11/15/31	$	9,253	$	12,682,302
AT&T Inc.
1.40%, 12/01/17		9,885		9,807,554
1.70%, 06/01/17		6,694		6,759,071
2.38%, 11/27/18		31,000		31,376,976
2.63%, 12/01/22 (Call 09/01/22)^a		16,367		15,142,689
3.00%, 02/15/22		21,641		20,862,407
3.88%, 08/15/21		18,002		18,650,412
4.35%, 06/15/45 (Call 12/15/44)		12,164		10,737,119
4.45%, 05/15/21		22,490		24,271,757
5.35%, 09/01/40		43,520		44,670,020
5.50%, 02/01/18		26,527		30,235,374
5.55%, 08/15/41		26,133		27,462,558
5.60%, 05/15/18		10,356		11,897,152
5.80%, 02/15/19		20,012		23,368,034
6.30%, 01/15/38		24,700		28,157,852
6.50%, 09/01/37		19,625		22,806,937
6.55%, 02/15/39		11,865		13,911,971
British Telecommunications PLC
2.35%, 02/14/19		14,150		14,183,561
5.95%, 01/15/18^a		25,464		29,292,731
9.63%, 12/15/30		13,250		20,356,321
Orange
2.75%, 02/06/19		8,000		8,095,918
4.13%, 09/14/21^a		16,116		16,689,644
5.38%, 07/08/19		3,370		3,804,446
5.38%, 01/13/42^a		9,332		9,457,277
5.50%, 02/06/44 (Call 08/06/43)		6,000		6,180,038
8.75%, 03/01/31		27,370		39,093,575
Qwest Corp.
6.75%, 12/01/21		15,094		17,056,220
6.88%, 09/15/33 (Call 03/31/14)		5,400		5,346,000
Telefonica Emisiones SAU
3.19%, 04/27/18^a		6,372		6,594,192
4.57%, 04/27/23^a		8,850		9,039,390
5.13%, 04/27/20^a		10,974		11,946,406
5.46%, 02/16/21^a		19,741		21,589,547


Security	Principal (000s)		Value
5.88%, 07/15/19	$	15,951	$	18,091,624
7.05%, 06/20/36^a		23,395		27,680,028
Telefonica Europe BV
8.25%, 09/15/30		8,478		10,813,466
Verizon Communications Inc.
2.45%, 11/01/22 (Call 08/01/22)		20,700		18,830,448
3.50%, 11/01/21		10,608		10,706,748
3.65%, 09/14/18		36,160		38,530,020
3.85%, 11/01/42 (Call 05/01/42)		12,010		10,184,823
4.50%, 09/15/20		17,332		18,788,867
4.60%, 04/01/21		13,552		14,662,714
4.75%, 11/01/41		7,800		7,509,873
5.15%, 09/15/23		53,297		58,417,397
5.50%, 04/01/17		2,000		2,246,824
5.50%, 02/15/18		7,225		8,196,531
5.85%, 09/15/35		17,990		20,174,769
6.00%, 04/01/41		3,000		3,402,293
6.10%, 04/15/18		18,636		21,577,812
6.25%, 04/01/37		3,993		4,606,764
6.35%, 04/01/19		12,314		14,569,106
6.40%, 09/15/33		33,400		39,687,881
6.40%, 02/15/38		5,645		6,611,825
6.55%, 09/15/43		96,540		118,147,670
6.90%, 04/15/38^a		15,950		19,667,431
7.35%, 04/01/39		8,061		10,436,512
7.75%, 12/01/30		23,990		31,586,945
8.75%, 11/01/18^a		13,426		17,241,335

				1,123,895,157
ELECTRIC UTILITIES — 1.01%
Duke Energy Carolinas LLC
5.30%, 02/15/40^a		5,420		6,184,703
Duke Energy Florida Inc.
6.40%, 06/15/38		11,013		14,369,648
Georgia Power Co.
4.30%, 03/15/42		11,685		11,165,433
MidAmerican Energy Holdings Co.
5.15%, 11/15/43 (Call 05/15/43)^c		5,500		5,812,402
6.13%, 04/01/36		19,300		23,020,642
6.50%, 09/15/37^a		11,050		13,706,122


SCHEDULESOF INVESTMENTS			125

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
Nisource Finance Corp.
4.80%, 02/15/44 (Call 08/15/43)	$	5,000	$	4,774,188
6.40%, 03/15/18^a		7,638		8,919,809
Oncor Electric Delivery Co. LLC
7.00%, 09/01/22		7,618		9,450,306
Pacific Gas & Electric Co.
3.50%, 10/01/20 (Call 07/01/20)^a		389		404,249
5.40%, 01/15/40		9,525		10,506,905
5.80%, 03/01/37		5,100		5,881,266
6.05%, 03/01/34^a		35,550		42,044,477
8.25%, 10/15/18		5,383		6,778,511
Southern California Edison Co.
4.65%, 10/01/43 (Call 04/01/43)		8,000		8,334,131

				171,352,792
ELECTRICAL EQUIPMENT — 0.32%
ABB Finance (USA) Inc.
2.88%, 05/08/22		13,029		12,707,549
4.38%, 05/08/42		5,175		5,071,602
Eaton Corp. PLC
1.50%, 11/02/17		12,100		12,085,087
2.75%, 11/02/22		22,880		21,680,104
4.15%, 11/02/42		2,965		2,739,423

				54,283,765
ENERGY EQUIPMENT & SERVICES — 1.44%
Baker Hughes Inc.
3.20%, 08/15/21 (Call 05/15/21)		950		967,738
5.13%, 09/15/40		15,700		17,330,800
7.50%, 11/15/18		9,716		12,063,147
Ensco PLC
4.70%, 03/15/21		11,030		11,844,622
Halliburton Co.
3.50%, 08/01/23 (Call 05/01/23)^a		9,550		9,598,885
4.75%, 08/01/43		6,150		6,383,362
6.15%, 09/15/19		10,036		12,020,951
6.70%, 09/15/38		7,500		9,688,954
7.45%, 09/15/39		12,945		18,128,353
Nabors Industries Inc.
6.15%, 02/15/18		12,750		14,418,350


Security	Principal (000s)		Value
National Oilwell Varco Inc.
2.60%, 12/01/22 (Call 09/01/22)	$	17,208	$	16,300,161
3.95%, 12/01/42 (Call 06/01/42)		10,685		9,842,319
Pride International Inc.
6.88%, 08/15/20		9,130		11,055,246
Transocean Inc.
2.50%, 10/15/17		2,861		2,897,700
3.80%, 10/15/22 (Call 07/15/22)		17,950		17,036,912
6.00%, 03/15/18		17,043		19,210,495
6.38%, 12/15/21		7,307		8,170,193
6.50%, 11/15/20		6,782		7,687,476
6.80%, 03/15/38^a		8,274		9,123,791
Weatherford International Ltd.
4.50%, 04/15/22 (Call 01/15/22)^a		5,895		6,138,013
5.13%, 09/15/20		7,170		7,840,810
9.63%, 03/01/19		11,725		15,269,191

				243,017,469
FOOD & STAPLES RETAILING — 2.80%
Costco Wholesale Corp.
1.13%, 12/15/17		19,950		19,795,785
1.70%, 12/15/19		15,823		15,493,461
CVS Caremark Corp.
2.25%, 12/05/18 (Call 11/05/18)		20,500		20,693,452
4.00%, 12/05/23 (Call 09/05/23)		23,481		24,078,429
5.75%, 06/01/17		15,100		17,152,046
5.75%, 05/15/41 (Call 11/15/40)		11,335		13,046,237
6.13%, 09/15/39		23,845		28,546,886
6.25%, 06/01/27		1,710		2,081,939
Kroger Co. (The)
6.15%, 01/15/20		10,997		13,002,696
Wal-Mart Stores Inc.
1.13%, 04/11/18		14,614		14,430,783
1.95%, 12/15/18		5,217		5,269,569
2.55%, 04/11/23 (Call 01/11/23)		16,620		15,653,274
3.25%, 10/25/20		4,421		4,597,317


126		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
3.63%, 07/08/20	$	20,478	$	21,852,596
4.00%, 04/11/43 (Call 10/11/42)		5,000		4,662,118
4.25%, 04/15/21		17,939		19,642,243
4.75%, 10/02/43 (Call 04/02/43)		13,580		14,351,476
4.88%, 07/08/40^a		14,670		15,680,531
5.00%, 10/25/40		19,005		20,764,551
5.25%, 09/01/35		17,730		19,949,269
5.38%, 04/05/17		13,659		15,507,165
5.63%, 04/01/40		16,040		18,929,688
5.63%, 04/15/41		27,785		32,860,297
5.80%, 02/15/18		4,241		4,935,837
5.88%, 04/05/27		830		1,020,238
6.20%, 04/15/38		6,441		8,056,613
6.50%, 08/15/37		36,073		46,760,727
7.55%, 02/15/30		4,568		6,359,632
Walgreen Co.
1.80%, 09/15/17		10,000		10,116,889
3.10%, 09/15/22^a		7,800		7,532,353
5.25%, 01/15/19^a		9,388		10,647,114

				473,471,211
FOOD PRODUCTS — 1.55%
Archer-Daniels-Midland Co.
4.48%, 03/01/21		9,405		10,199,218
ConAgra Foods Inc.
1.90%, 01/25/18		10,755		10,751,796
3.20%, 01/25/23 (Call 10/25/22)		9,050		8,621,829
4.65%, 01/25/43 (Call 07/25/42)^a		12,000		11,430,412
General Mills Inc.
3.15%, 12/15/21 (Call 09/15/21)		12,704		12,775,084
5.65%, 02/15/19^a		1,350		1,566,239
5.70%, 02/15/17		2,455		2,771,397
Kellogg Co.
4.00%, 12/15/20		3,362		3,576,410
Series B
7.45%, 04/01/31		15,260		20,031,439
Kraft Foods Group Inc.
2.25%, 06/05/17		17,644		18,176,473
3.50%, 06/06/22		25,412		25,575,656
5.00%, 06/04/42		25,068		25,939,138


Security	Principal (000s)		Value
5.38%, 02/10/20	$	10,330	$	11,824,491
6.50%, 02/09/40		5,325		6,573,321
6.88%, 01/26/39		5,975		7,651,138
Mondelez International Inc.
5.38%, 02/10/20		25,490		29,155,131
6.13%, 08/23/18^a		8,518		9,920,408
6.50%, 08/11/17		17,728		20,629,643
6.50%, 02/09/40^a		20,289		25,346,005

				262,515,228
HEALTH CARE EQUIPMENT & SUPPLIES — 0.77%
Abbott Laboratories
5.13%, 04/01/19^a		8,808		10,108,706
Baxter International Inc.
1.85%, 06/15/18^a		3,635		3,636,125
3.20%, 06/15/23 (Call 03/15/23)^a		15,992		15,702,828
Becton, Dickinson and Co.
3.13%, 11/08/21		9,948		10,059,569
Boston Scientific Corp.
6.00%, 01/15/20^a		9,053		10,568,646
Covidien International Finance SA
6.00%, 10/15/17		7,250		8,343,325
6.55%, 10/15/37		12,950		16,623,367
Medtronic Inc.
1.38%, 04/01/18		10,450		10,356,425
2.75%, 04/01/23 (Call 01/01/23)		6,514		6,198,591
3.63%, 03/15/24 (Call 12/15/23)		10,000		10,129,018
4.00%, 04/01/43 (Call 10/01/42)^a		8,000		7,439,647
4.45%, 03/15/20		13,366		14,858,579
St. Jude Medical Inc.
3.25%, 04/15/23 (Call 01/15/23)		6,868		6,654,517

				130,679,343
HEALTH CARE PROVIDERS & SERVICES — 1.16%
Aetna Inc.
2.75%, 11/15/22 (Call 08/15/22)		13,065		12,337,571
3.95%, 09/01/20		5,483		5,821,182
6.63%, 06/15/36		7,398		9,230,394


SCHEDULESOF INVESTMENTS			127

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
Cigna Corp.
4.00%, 02/15/22 (Call 11/15/21)^a	$	4,301	$	4,474,629
5.38%, 02/15/42 (Call 08/15/41)		11,255		12,326,482
Express Scripts Holding Co.
2.65%, 02/15/17		8,000		8,320,596
3.90%, 02/15/22^a		11,000		11,316,298
4.75%, 11/15/21^a		2,375		2,583,168
Medco Health Solutions Inc.
7.13%, 03/15/18		16,312		19,478,699
UnitedHealth Group Inc.
2.88%, 03/15/22 (Call 12/15/21)^a		14,254		13,864,941
2.88%, 03/15/23		5,000		4,774,814
4.25%, 03/15/43 (Call 09/15/42)		11,500		10,887,476
5.80%, 03/15/36		4,000		4,650,070
6.00%, 02/15/18		10,334		12,025,506
6.88%, 02/15/38		12,323		16,187,129
WellPoint Inc.
3.13%, 05/15/22		7,623		7,347,172
3.30%, 01/15/23^a		14,550		14,033,994
4.63%, 05/15/42		10,280		9,950,351
4.65%, 01/15/43		9,410		9,130,149
5.85%, 01/15/36		2,950		3,312,332
6.38%, 06/15/37		3,470		4,161,215

				196,214,168
HOTELS, RESTAURANTS & LEISURE — 0.21%
McDonald’s Corp.
2.63%, 01/15/22		11,276		11,011,816
5.35%, 03/01/18		4,148		4,742,587
6.30%, 10/15/37		9,701		12,304,355
6.30%, 03/01/38		5,308		6,747,518

				34,806,276
HOUSEHOLD PRODUCTS — 0.38%
Kimberly-Clark Corp.
6.13%, 08/01/17		665		771,053
Procter & Gamble Co. (The)
1.60%, 11/15/18		5,000		4,991,206
2.30%, 02/06/22		22,915		21,982,866
3.10%, 08/15/23^a		14,000		13,900,922
4.70%, 02/15/19^a		4,122		4,683,332


Security	Principal (000s)		Value
5.55%, 03/05/37	$	15,145	$	17,918,380

				64,247,759
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.10%
Exelon Generation Co. LLC
5.60%, 06/15/42 (Call 12/15/41)		9,280		9,410,209
6.25%, 10/01/39^a		6,720		7,270,627

				16,680,836
INDUSTRIAL CONGLOMERATES — 0.68%
3M Co.
5.70%, 03/15/37		3,350		4,007,852
Danaher Corp.
5.40%, 03/01/19		2,087		2,412,582
General Electric Co.
2.70%, 10/09/22^a		31,275		30,194,355
4.13%, 10/09/42		21,397		20,728,669
5.25%, 12/06/17		23,319		26,577,933
Koninklijke Philips NV
3.75%, 03/15/22		12,004		12,375,831
5.75%, 03/11/18		9,507		10,955,366
6.88%, 03/11/38		6,432		8,280,173

				115,532,761
INSURANCE — 2.39%
Aflac Inc.
8.50%, 05/15/19		2,500		3,238,602
American International Group Inc.
3.38%, 08/15/20^a		10,000		10,252,829
3.80%, 03/22/17		17,692		18,974,781
4.13%, 02/15/24		10,650		10,936,721
4.88%, 06/01/22		22,994		25,228,906
5.45%, 05/18/17		6,173		6,934,491
5.85%, 01/16/18		26,119		30,030,080
6.25%, 05/01/36		9,750		11,982,694
6.40%, 12/15/20		14,896		17,839,341
8.25%, 08/15/18		23,875		29,923,731
Berkshire Hathaway Finance Corp.
1.60%, 05/15/17^a		19,887		20,255,900
3.00%, 05/15/22		17,867		17,743,505
4.25%, 01/15/21^a		6,517		7,126,645
5.40%, 05/15/18^a		10,771		12,424,905
5.75%, 01/15/40		5,850		6,769,732


128		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
Berkshire Hathaway Inc.
1.55%, 02/09/18	$	7,000	$	7,003,753
4.50%, 02/11/43^a		8,871		8,708,520
Chubb Corp. (The)
6.00%, 05/11/37		4,075		4,967,252
MetLife Inc.
4.13%, 08/13/42^a		4,000		3,686,383
4.75%, 02/08/21		5,094		5,661,524
4.88%, 11/13/43		10,000		10,380,691
5.70%, 06/15/35		3,820		4,398,372
5.88%, 02/06/41		16,550		19,381,409
6.38%, 06/15/34		7,875		9,694,146
7.72%, 02/15/19^a		17,053		21,385,968
Series A
6.82%, 08/15/18		13,229		15,935,848
Series D
4.37%, 09/15/23^a		8,500		8,999,979
Prudential Financial Inc.
7.38%, 06/15/19		9,082		11,316,370
Series D
6.00%, 12/01/17		11,184		12,941,387
6.63%, 12/01/37		9,525		11,931,460
Travelers Companies Inc. (The)
5.35%, 11/01/40^a		6,950		7,878,299
6.25%, 06/15/37		8,515		10,652,578

				404,586,802
INTERNET & CATALOG RETAIL — 0.12%
Amazon.com Inc.
1.20%, 11/29/17		5,155		5,108,133
2.50%, 11/29/22 (Call 08/29/22)^a		16,094		14,997,041

				20,105,174
INTERNET SOFTWARE & SERVICES — 0.26%
eBay Inc.
1.35%, 07/15/17		5,196		5,211,645
2.60%, 07/15/22 (Call 04/15/22)^a		12,088		11,448,897
4.00%, 07/15/42 (Call 01/15/42)		12,082		10,578,638
Google Inc.
3.38%, 02/25/24		10,820		10,886,015
3.63%, 05/19/21		5,361		5,715,701

				43,840,896


Security	Principal (000s)		Value
IT SERVICES — 0.86%
Fidelity National Information Services Inc.
3.50%, 04/15/23 (Call 01/15/23)^a	$	400	$	376,636
International Business Machines Corp.
1.25%, 02/06/17^a		13,777		13,908,308
1.25%, 02/08/18		1,970		1,951,698
1.63%, 05/15/20^a		1,250		1,197,127
1.88%, 08/01/22		4,440		3,999,723
1.95%, 02/12/19		5,000		5,021,992
3.38%, 08/01/23		22,410		22,307,571
3.63%, 02/12/24^a		14,460		14,579,972
4.00%, 06/20/42		13,250		12,271,864
5.70%, 09/14/17		33,805		38,901,989
7.63%, 10/15/18		11,548		14,458,006
8.38%, 11/01/19		12,737		16,819,500

				145,794,386
LIFE SCIENCES TOOLS & SERVICES — 0.33%
Thermo Fisher Scientific Inc.
2.40%, 02/01/19		16,482		16,542,479
3.15%, 01/15/23 (Call 10/15/22)		8,575		8,248,024
3.60%, 08/15/21 (Call 05/15/21)		16,396		16,801,837
4.15%, 02/01/24 (Call 11/01/23)^a		8,100		8,328,064
4.50%, 03/01/21		5,192		5,606,570

				55,526,974
MACHINERY — 0.61%
Caterpillar Inc.
3.80%, 08/15/42		14,795		13,135,468
3.90%, 05/27/21		11,487		12,206,531
5.20%, 05/27/41		10,860		11,925,140
7.90%, 12/15/18		13,993		17,722,365
Deere & Co.
2.60%, 06/08/22 (Call 03/08/22)		13,910		13,392,242
3.90%, 06/09/42 (Call 12/09/41)^a		10,710		9,907,651
4.38%, 10/16/19		11,683		12,982,540


SCHEDULESOF INVESTMENTS			129

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
Illinois Tool Works Inc.
3.90%, 09/01/42 (Call 03/01/42)	$	12,550	$	11,376,254

				102,648,191
MEDIA — 6.35%
21st Century Fox America Inc.
3.00%, 09/15/22^a		18,750		18,047,378
4.50%, 02/15/21		4,524		4,929,785
6.15%, 03/01/37		5,100		5,859,319
6.15%, 02/15/41^a		15,630		17,966,122
6.20%, 12/15/34		12,947		14,943,930
6.40%, 12/15/35^a		11,400		13,497,730
6.65%, 11/15/37^a		8,827		10,648,830
CBS Corp.
7.88%, 07/30/30		11,130		14,455,759
Comcast Cable Communications Holdings Inc.
9.46%, 11/15/22		2,091		2,976,140
Comcast Corp.
2.85%, 01/15/23^a		5,885		5,681,271
3.13%, 07/15/22^a		13,122		13,024,619
3.60%, 03/01/24		10,000		10,076,494
4.25%, 01/15/33^a		26,650		26,189,576
4.65%, 07/15/42		11,830		11,834,820
4.75%, 03/01/44		5,000		5,091,882
5.15%, 03/01/20		16,208		18,528,493
5.65%, 06/15/35		6,000		6,777,407
5.70%, 05/15/18		9,035		10,446,828
5.88%, 02/15/18^a		11,790		13,653,230
6.30%, 11/15/17		14,053		16,424,499
6.40%, 05/15/38		800		983,534
6.40%, 03/01/40		6,800		8,383,088
6.45%, 03/15/37		16,530		20,365,327
6.50%, 11/15/35		2,150		2,661,905
6.55%, 07/01/39^a		13,775		17,237,160
6.95%, 08/15/37		27,313		35,486,322
7.05%, 03/15/33		300		388,983
DIRECTV Holdings LLC/DIRECTV Financing Co. Inc.
1.75%, 01/15/18^a		11,200		11,116,181
2.40%, 03/15/17		18,588		19,114,477
3.80%, 03/15/22^a		11,113		10,966,186


Security	Principal (000s)		Value
4.60%, 02/15/21 (Call 11/15/20)	$	16,685	$	17,613,625
5.00%, 03/01/21^a		13,211		14,265,486
5.15%, 03/15/42		11,429		10,744,605
5.20%, 03/15/20		5,100		5,627,331
5.88%, 10/01/19		4,562		5,246,470
6.00%, 08/15/40 (Call 05/15/40)		12,325		12,757,871
6.38%, 03/01/41		13,235		14,325,446
Discovery Communications LLC
4.88%, 04/01/43		10,000		9,693,845
5.05%, 06/01/20^a		17,823		19,838,847
6.35%, 06/01/40		4,350		5,027,987
Historic TW Inc.
6.63%, 05/15/29		11,830		14,240,081
NBCUniversal Media LLC
2.88%, 01/15/23^a		13,425		12,942,021
4.38%, 04/01/21		25,925		28,154,682
4.45%, 01/15/43		23,925		23,069,504
5.15%, 04/30/20		14,949		17,081,290
5.95%, 04/01/41		17,450		20,479,430
6.40%, 04/30/40		3,425		4,190,881
Omnicom Group Inc.
3.63%, 05/01/22		5,158		5,143,257
4.45%, 08/15/20		19,200		20,748,741
Thomson Reuters Corp.
6.50%, 07/15/18		6,979		8,155,984
Time Warner Cable Inc.
4.00%, 09/01/21 (Call 06/01/21)		16,365		16,996,496
4.50%, 09/15/42 (Call 03/15/42)^a		14,750		13,460,635
5.00%, 02/01/20		20,463		22,572,273
5.50%, 09/01/41 (Call 03/01/41)		7,320		7,627,269
5.85%, 05/01/17		2,373		2,685,571
5.88%, 11/15/40 (Call 05/15/40)		12,650		13,752,928
6.55%, 05/01/37		8,443		9,787,527
6.75%, 07/01/18		33,813		39,971,622
6.75%, 06/15/39		19,659		23,284,338
7.30%, 07/01/38		18,750		23,560,674
8.25%, 04/01/19		22,389		28,210,559
8.75%, 02/14/19		9,604		12,253,068


130		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
Time Warner Entertainment Co. LP
8.38%, 03/15/23^a	$	13,853	$	18,231,407
Time Warner Inc.
4.70%, 01/15/21		16,073		17,602,296
4.75%, 03/29/21		6,160		6,770,598
4.88%, 03/15/20		19,680		21,847,628
6.10%, 07/15/40		15,340		17,451,413
6.25%, 03/29/41		7,095		8,245,451
6.50%, 11/15/36		9,850		11,580,627
7.63%, 04/15/31		17,019		22,467,747
7.70%, 05/01/32		17,963		23,833,264
Viacom Inc.
4.25%, 09/01/23 (Call 06/01/23)		15,392		15,854,425
4.38%, 03/15/43^a		16,050		14,168,313
5.85%, 09/01/43 (Call 03/01/43)		10,000		10,982,075
6.88%, 04/30/36		5,813		7,066,691
Walt Disney Co. (The)
1.10%, 12/01/17		12,300		12,220,228
2.35%, 12/01/22^a		2,500		2,341,686
2.75%, 08/16/21		11,250		11,262,413

				1,073,193,881
METALS & MINING — 3.17%
Alcoa Inc.
5.40%, 04/15/21 (Call 01/15/21)^a		12,893		13,574,958
5.72%, 02/23/19		5,046		5,543,397
6.15%, 08/15/20^a		8,299		9,177,565
6.75%, 07/15/18^a		11,774		13,458,180
Barrick Gold Corp.
3.85%, 04/01/22^a		12,375		11,844,632
4.10%, 05/01/23^a		15,000		14,345,673
5.25%, 04/01/42		1,250		1,130,158
6.95%, 04/01/19^a		12,344		14,604,604
Barrick North America Finance LLC
4.40%, 05/30/21		7,981		8,078,427
5.70%, 05/30/41		17,620		16,873,326
5.75%, 05/01/43		10,000		9,754,460


Security	Principal (000s)		Value
Barrick PD Australia Finance Pty Ltd.
5.95%, 10/15/39	$	2,250	$	2,208,593
BHP Billiton Finance (USA) Ltd.
2.05%, 09/30/18		3,345		3,386,017
2.88%, 02/24/22		8,068		7,937,072
3.25%, 11/21/21		18,899		19,233,401
3.85%, 09/30/23		17,000		17,419,647
4.13%, 02/24/42^a		17,900		16,836,284
5.00%, 09/30/43^a		17,150		18,063,960
5.40%, 03/29/17		5,000		5,637,062
6.50%, 04/01/19^a		14,356		17,345,156
Cliffs Natural Resources Inc.
6.25%, 10/01/40^a		8,608		7,377,780
Freeport-McMoRan Copper & Gold Inc.
2.38%, 03/15/18^a		18,211		18,356,500
3.10%, 03/15/20		13,530		13,431,270
3.55%, 03/01/22 (Call 12/01/21)		27,849		26,909,784
3.88%, 03/15/23 (Call 12/15/22)^a		21,185		20,544,099
5.45%, 03/15/43 (Call 09/15/42)^a		15,250		15,022,487
Newmont Mining Corp.
3.50%, 03/15/22 (Call 12/15/21)^a		17,425		15,883,234
4.88%, 03/15/42 (Call 09/15/41)		18,048		14,681,541
5.13%, 10/01/19^a		3,319		3,549,288
6.25%, 10/01/39		4,650		4,501,163
Rio Tinto Alcan Inc.
6.13%, 12/15/33		250		288,463
Rio Tinto Finance (USA) Ltd.
3.50%, 11/02/20		152		157,063
3.75%, 09/20/21		15,518		15,993,375
4.13%, 05/20/21		6,940		7,336,713
5.20%, 11/02/40		14,402		15,234,349
6.50%, 07/15/18		21,799		25,889,624
7.13%, 07/15/28		3,400		4,307,698
9.00%, 05/01/19		23,479		30,703,674
Rio Tinto Finance (USA) PLC
1.63%, 08/21/17 (Call 07/21/17)		3,004		3,024,091


SCHEDULESOF INVESTMENTS			131

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
2.25%, 12/14/18 (Call 11/14/18)^a	$	11,880	$	12,003,515
2.88%, 08/21/22 (Call 05/21/22)^a		10,056		9,593,331
3.50%, 03/22/22 (Call 12/22/21)		14,221		14,232,341
4.13%, 08/21/42 (Call 02/21/42)		12,920		11,620,099
Teck Resources Ltd.
3.75%, 02/01/23 (Call 11/01/22)^a		11,780		11,235,307
6.25%, 07/15/41 (Call 01/15/41)		6,825		7,147,249

				535,476,610
MULTI-UTILITIES — 0.05%
Sempra Energy
6.00%, 10/15/39		6,740		7,959,193

				7,959,193
MULTILINE RETAIL — 0.59%
Macy’s Retail Holdings Inc.
2.88%, 02/15/23 (Call 11/15/22)		3,630		3,378,794
Target Corp.
2.90%, 01/15/22		10,263		10,066,094
3.88%, 07/15/20		6,671		7,159,659
4.00%, 07/01/42^a		20,165		18,356,185
5.38%, 05/01/17		12,888		14,549,783
6.00%, 01/15/18		15,718		18,253,628
6.50%, 10/15/37		17,060		21,256,136
7.00%, 01/15/38		4,930		6,502,045

				99,522,324
OFFICE ELECTRONICS — 0.12%
Xerox Corp.
4.50%, 05/15/21		14,121		14,895,640
6.35%, 05/15/18		4,785		5,582,786

				20,478,426
OIL, GAS & CONSUMABLE FUELS — 9.11%
Anadarko Petroleum Corp.
6.20%, 03/15/40		11,750		13,684,925
6.38%, 09/15/17		16,785		19,403,183
6.45%, 09/15/36		18,817		22,338,884


Security	Principal (000s)			Value
Apache Corp.
2.63%, 01/15/23 (Call 10/15/22)^a	$	5,000		$	4,749,667
3.25%, 04/15/22 (Call 01/15/22)		11,883			12,024,461
4.75%, 04/15/43 (Call 10/15/42)		24,975			25,098,486
5.10%, 09/01/40 (Call 03/01/40)		9,850			10,381,053
6.00%, 01/15/37		11,790			13,836,320
Canadian Natural Resources Ltd.
5.70%, 05/15/17		6,273			7,107,485
6.25%, 03/15/38^a		13,371			15,774,036
Cenovus Energy Inc.
4.45%, 09/15/42 (Call 03/15/42)^a		10,602			9,932,434
5.70%, 10/15/19		742			857,525
6.75%, 11/15/39		16,575			20,611,099
Chevron Corp.
1.10%, 12/05/17 (Call 11/05/17)		25,476			25,291,467
1.72%, 06/24/18 (Call 05/24/18)^a		5,918			5,947,628
2.36%, 12/05/22 (Call 09/05/22)		21,902			20,497,254
2.43%, 06/24/20 (Call 05/24/20)^a		6,109			6,127,464
3.19%, 06/24/23 (Call 03/24/23)		25,450			25,238,017
4.95%, 03/03/19		17,209			19,687,519
ConocoPhillips
5.75%, 02/01/19		15,696			18,443,323
6.00%, 01/15/20		10,938	��		13,088,834
6.50%, 02/01/39		31,642			41,350,677
6.95%, 04/15/29		4,470			5,951,202
ConocoPhillips Co.
1.05%, 12/15/17 (Call 11/15/17)		14,590			14,470,328
2.40%, 12/15/22 (Call 09/15/22)		15,750			14,882,835
Continental Resources Inc.
4.50%, 04/15/23 (Call 01/15/23)^a		10,000			10,356,407


132		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
5.00%, 09/15/22 (Call 03/15/17)^a	$	20,500	$	21,407,574
Devon Energy Corp.
1.88%, 05/15/17 (Call 04/15/17)		6,005		6,082,765
2.25%, 12/15/18 (Call 11/15/18)		15,000		15,034,991
3.25%, 05/15/22 (Call 02/15/22)^a		4,679		4,607,447
4.75%, 05/15/42 (Call 11/15/41)^a		9,175		9,031,692
5.60%, 07/15/41 (Call 01/15/41)		7,850		8,598,990
7.95%, 04/15/32		13,510		18,532,521
Devon Financing Corp. ULC
7.88%, 09/30/31		9,460		12,902,124
Encana Corp.
6.50%, 08/15/34		12,190		13,945,601
6.50%, 02/01/38		4,400		5,114,169
Energy Transfer Partners LP
3.60%, 02/01/23 (Call 11/01/22)^a		8,514		8,109,220
4.65%, 06/01/21 (Call 03/01/21)		13,263		13,902,527
5.20%, 02/01/22 (Call 11/01/21)		3,984		4,282,411
6.50%, 02/01/42 (Call 08/01/41)^a		13,480		14,933,229
Enterprise Products Operating LLC
3.35%, 03/15/23 (Call 12/15/22)		8,256		8,074,992
3.90%, 02/15/24 (Call 11/15/23)		8,400		8,451,266
4.45%, 02/15/43 (Call 08/15/42)		7,205		6,670,728
4.85%, 08/15/42 (Call 02/15/42)^a		5,650		5,567,213
4.85%, 03/15/44 (Call 09/15/43)^a		13,850		13,723,101
5.10%, 02/15/45 (Call 08/15/44)		10,425		10,659,835
5.20%, 09/01/20		11,308		12,783,248
5.95%, 02/01/41		9,910		11,233,881


Security	Principal (000s)		Value
Series L
6.30%, 09/15/17	$	5,757	$	6,683,620
EOG Resources Inc.
2.63%, 03/15/23 (Call 12/15/22)		14,575		13,739,546
4.10%, 02/01/21		5,821		6,239,029
5.63%, 06/01/19		3,669		4,258,777
Hess Corp.
5.60%, 02/15/41^a		7,268		7,927,261
6.00%, 01/15/40		8,300		9,412,555
7.30%, 08/15/31		9,668		12,173,702
8.13%, 02/15/19		12,162		15,321,927
Kinder Morgan Energy Partners LP
2.65%, 02/01/19^a		9,442		9,469,332
3.50%, 03/01/21 (Call 01/01/21)		5,000		5,017,285
3.95%, 09/01/22 (Call 06/01/22)		11,500		11,476,433
5.50%, 03/01/44 (Call 09/01/43)		9,000		9,091,762
5.95%, 02/15/18		10,870		12,429,297
6.95%, 01/15/38^a		7,375		8,677,505
Marathon Oil Corp.
2.80%, 11/01/22 (Call 08/01/22)^a		11,175		10,536,836
5.90%, 03/15/18		9,093		10,453,135
6.60%, 10/01/37		8,450		10,530,367
Marathon Petroleum Corp.
5.13%, 03/01/21		10,435		11,654,756
6.50%, 03/01/41 (Call 09/01/40)		10,726		12,870,549
Noble Energy Inc.
4.15%, 12/15/21 (Call 09/15/21)^a		8,702		9,180,060
5.25%, 11/15/43 (Call 05/15/43)^a		8,000		8,365,054
6.00%, 03/01/41 (Call 09/01/40)		11,115		12,739,305
8.25%, 03/01/19^a		9,742		12,275,386
Occidental Petroleum Corp.
2.70%, 02/15/23 (Call 11/15/22)^a		7,550		7,139,137


SCHEDULESOF INVESTMENTS			133

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
3.13%, 02/15/22 (Call 11/15/21)	$	19,046	$	18,939,401
Series 1
4.10%, 02/01/21 (Call 11/01/20)		13,310		14,392,086
ONEOK Partners LP
3.38%, 10/01/22 (Call 07/01/22)		9,390		9,041,359
Petro-Canada
6.80%, 05/15/38		9,915		12,516,124
Petrohawk Energy Corp.
7.25%, 08/15/18 (Call 08/15/14)		16,100		17,106,250
Phillips 66
2.95%, 05/01/17		14,175		14,875,245
4.30%, 04/01/22		13,409		14,104,222
5.88%, 05/01/42^a		16,480		18,757,869
Plains All American Pipeline LP/PAA Finance Corp.
3.65%, 06/01/22 (Call 03/01/22)^a		6,160		6,185,363
Plains Exploration & Production Co.
6.13%, 06/15/19 (Call 06/15/16)		5,700		6,276,912
6.50%, 11/15/20 (Call 11/15/15)^a		9,275		10,235,981
6.75%, 02/01/22 (Call 02/01/17)		5,775		6,380,829
6.88%, 02/15/23 (Call 02/15/18)^a		15,000		16,720,717
Schlumberger Investment SA
3.65%, 12/01/23 (Call 09/01/23)		13,000		13,256,417
Shell International Finance BV
1.13%, 08/21/17		3,445		3,441,058
1.90%, 08/10/18		18,850		19,015,265
2.00%, 11/15/18		18,550		18,723,302
2.25%, 01/06/23^a		13,850		12,772,163
2.38%, 08/21/22		10,119		9,497,360
3.40%, 08/12/23^a		13,202		13,218,860
4.30%, 09/22/19		22,751		25,252,147
4.38%, 03/25/20		5,375		5,976,512


Security	Principal (000s)		Value
4.55%, 08/12/43	$	19,950	$	20,298,832
5.20%, 03/22/17		4,882		5,483,267
5.50%, 03/25/40		16,940		19,611,352
6.38%, 12/15/38		12,619		16,092,319
Suncor Energy Inc.
6.10%, 06/01/18^a		15,525		18,146,384
6.50%, 06/15/38		6,145		7,509,991
6.85%, 06/01/39^a		10,925		13,889,344
Total Capital Canada Ltd.
1.45%, 01/15/18		2,000		1,998,847
2.75%, 07/15/23		13,664		12,916,033
Total Capital International SA
1.50%, 02/17/17		1,416		1,436,437
1.55%, 06/28/17		7,708		7,795,924
2.13%, 01/10/19		7,000		7,086,849
2.70%, 01/25/23		11,280		10,693,448
2.88%, 02/17/22^a		15,255		15,025,412
3.70%, 01/15/24		7,250		7,360,826
3.75%, 04/10/24		3,000		3,063,456
Total Capital SA
2.13%, 08/10/18		16,248		16,495,928
4.45%, 06/24/20		16,546		18,367,741
TransCanada PipeLines Ltd.
2.50%, 08/01/22		8,000		7,508,226
3.80%, 10/01/20		12,476		13,195,352
4.63%, 03/01/34 (Call 12/01/33)		10,000		10,140,398
6.10%, 06/01/40		8,850		10,517,202
6.20%, 10/15/37		8,300		9,978,337
6.50%, 08/15/18		8,737		10,407,999
7.13%, 01/15/19		5,966		7,294,092
7.63%, 01/15/39		12,900		17,889,657
Valero Energy Corp.
6.13%, 06/15/17		11,015		12,595,525
6.13%, 02/01/20^a		10,324		12,112,097
6.63%, 06/15/37		14,693		17,577,468
7.50%, 04/15/32		8,181		10,300,367
9.38%, 03/15/19		1,499		1,966,576
Williams Partners LP
3.35%, 08/15/22 (Call 05/15/22)		12,600		12,081,757
5.25%, 03/15/20		9,468		10,502,920
6.30%, 04/15/40^a		14,848		16,579,057

				1,539,049,516


134		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
PAPER & FOREST PRODUCTS — 0.38%
International Paper Co.
4.75%, 02/15/22 (Call 11/15/21)^a	$	6,627	$	7,200,994
7.30%, 11/15/39		6,050		7,934,035
7.50%, 08/15/21^a		11,074		13,986,730
7.95%, 06/15/18		27,624		34,070,419
9.38%, 05/15/19		1,309		1,731,832

				64,924,010
PHARMACEUTICALS — 4.91%
AbbVie Inc.
1.75%, 11/06/17		37,416		37,761,945
2.00%, 11/06/18^a		20,525		20,539,117
2.90%, 11/06/22^a		34,829		33,651,801
4.40%, 11/06/42		21,255		20,905,438
Actavis Inc.
1.88%, 10/01/17^a		13,100		13,113,426
3.25%, 10/01/22 (Call 07/01/22)^a		19,845		19,100,056
4.63%, 10/01/42 (Call 04/01/42)		5,650		5,372,242
AstraZeneca PLC
1.95%, 09/18/19		14,038		13,867,732
4.00%, 09/18/42		9,950		9,224,247
5.90%, 09/15/17		15,154		17,514,573
6.45%, 09/15/37^a		27,652		34,722,650
Bristol-Myers Squibb Co.
0.88%, 08/01/17		1,162		1,148,694
2.00%, 08/01/22		14,104		12,863,564
Eli Lilly and Co.
5.20%, 03/15/17		5,324		5,965,257
5.55%, 03/15/37		4,650		5,320,454
GlaxoSmithKline Capital Inc.
2.80%, 03/18/23^a		20,440		19,623,794
5.65%, 05/15/18		24,529		28,421,399
6.38%, 05/15/38		23,341		29,899,599
GlaxoSmithKline Capital PLC
1.50%, 05/08/17		16,554		16,744,568
2.85%, 05/08/22^a		24,886		24,466,524
Johnson & Johnson
5.15%, 07/15/18^a		13,062		15,066,839
5.55%, 08/15/17		8,910		10,265,438
5.95%, 08/15/37		7,430		9,288,546


Security	Principal (000s)		Value
Merck & Co. Inc.
1.10%, 01/31/18^a	$	7,005	$	6,908,304
1.30%, 05/18/18		13,340		13,153,151
2.40%, 09/15/22 (Call 06/15/22)		17,250		16,276,814
2.80%, 05/18/23		2,000		1,912,359
3.88%, 01/15/21 (Call 10/15/20)		15,079		16,187,225
4.15%, 05/18/43^a		4,000		3,841,906
5.00%, 06/30/19		16,659		19,103,767
5.85%, 06/30/39^a		4,440		5,329,125
6.00%, 09/15/17		8,967		10,398,994
6.55%, 09/15/37		13,200		17,052,366
Novartis Capital Corp.
2.40%, 09/21/22		22,412		21,208,736
3.40%, 05/06/24		20,250		20,321,837
4.40%, 04/24/20^a		2,182		2,411,369
4.40%, 05/06/44^a		11,900		12,000,912
Novartis Securities Investment Ltd.
5.13%, 02/10/19		31,248		35,777,088
Pfizer Inc.
1.50%, 06/15/18		10,000		9,917,127
3.00%, 06/15/23^a		17,500		16,959,366
4.30%, 06/15/43		5,056		4,964,097
6.20%, 03/15/19		29,303		35,071,105
7.20%, 03/15/39		23,121		32,089,118
Sanofi
1.25%, 04/10/18		11,860		11,674,074
4.00%, 03/29/21		21,996		23,575,104
Schering-Plough Corp./Merck & Co. Inc.
6.50%, 12/01/33		18,862		24,398,272
Wyeth LLC
5.95%, 04/01/37		22,918		27,644,668
6.50%, 02/01/34		4,794		6,123,873
Zoetis Inc.
1.88%, 02/01/18		3,200		3,207,590
3.25%, 02/01/23 (Call 11/01/22)^a		17,025		16,410,820
4.70%, 02/01/43 (Call 08/01/42)		10,275		10,153,683

				828,920,753


SCHEDULESOF INVESTMENTS			135

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.84%
American Tower Corp.
3.40%, 02/15/19	$	6,316	$	6,547,063
3.50%, 01/31/23		7,256		6,852,296
4.50%, 01/15/18		11,376		12,403,848
4.70%, 03/15/22		6,000		6,252,806
5.00%, 02/15/24		6,978		7,298,347
Boston Properties LP
3.70%, 11/15/18 (Call 08/15/18)		7,820		8,378,062
3.85%, 02/01/23 (Call 11/01/22)^a		16,500		16,668,830
4.13%, 05/15/21		3,601		3,791,947
ERP Operating LP
4.63%, 12/15/21 (Call 09/15/21)		9,826		10,670,629
HCP Inc.
2.63%, 02/01/20 (Call 11/01/19)		5,575		5,463,112
4.25%, 11/15/23 (Call 08/15/23)		6,000		6,141,413
5.38%, 02/01/21 (Call 11/03/20)		12,712		14,238,290
Simon Property Group LP
4.38%, 03/01/21 (Call 12/01/20)^a		9,679		10,545,656
5.65%, 02/01/20 (Call 11/01/19)		11,743		13,757,916
6.13%, 05/30/18		10,735		12,587,079

				141,597,294
ROAD & RAIL — 0.28%
Burlington Northern Santa Fe Corp.
3.85%, 09/01/23 (Call 06/01/23)		5,000		5,090,202
4.45%, 03/15/43 (Call 09/15/42)		4,881		4,661,848
4.70%, 10/01/19		7,268		8,107,392
5.75%, 05/01/40 (Call 11/01/39)		10,993		12,653,632
CSX Corp.
4.10%, 03/15/44 (Call 09/15/43)^a		8,250		7,439,579


Security	Principal (000s)		Value
Union Pacific Corp.
4.16%, 07/15/22 (Call 04/15/22)	$	7,941	$	8,421,932

				46,374,585
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.68%
Intel Corp.
1.35%, 12/15/17		35,775		35,782,756
2.70%, 12/15/22		4,550		4,320,828
3.30%, 10/01/21		26,257		26,828,833
4.00%, 12/15/32		5,000		4,850,316
4.25%, 12/15/42^a		15,725		14,833,787
4.80%, 10/01/41		16,796		17,164,692
Texas Instruments Inc.
1.65%, 08/03/19		10,867		10,578,442

				114,359,654
SOFTWARE — 1.80%
Microsoft Corp.
1.63%, 12/06/18		5,750		5,744,106
2.13%, 11/15/22^a		6,837		6,341,045
2.38%, 05/01/23 (Call 02/01/23)^a		10,000		9,364,573
3.00%, 10/01/20^a		7,369		7,623,970
3.50%, 11/15/42^a		8,927		7,713,896
3.63%, 12/15/23 (Call 09/15/23)^a		28,950		29,766,280
4.20%, 06/01/19		20,823		23,217,233
4.50%, 10/01/40		9,600		9,718,748
5.20%, 06/01/39^a		4,500		4,971,290
5.30%, 02/08/41		6,638		7,457,380
Oracle Corp.
1.20%, 10/15/17		16,737		16,663,894
2.38%, 01/15/19		19,573		19,974,624
2.50%, 10/15/22		28,743		27,020,716
3.63%, 07/15/23^a		8,175		8,287,782
3.88%, 07/15/20		3,874		4,167,335
5.00%, 07/08/19		22,141		25,285,622
5.38%, 07/15/40		30,305		34,094,080
5.75%, 04/15/18		27,760		32,220,849
6.13%, 07/08/39		15,950		19,437,517
6.50%, 04/15/38^a		3,289		4,165,752

				303,236,692


136		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal (000s)		Value
SPECIALTY RETAIL — 0.73%
Home Depot Inc. (The)
2.25%, 09/10/18 (Call 08/10/18)	$	16,301	$	16,646,642
2.70%, 04/01/23 (Call 01/01/23)		5,500		5,247,164
3.75%, 02/15/24 (Call 11/15/23)		9,837		10,133,587
4.20%, 04/01/43 (Call 10/01/42)		5,345		5,199,349
4.40%, 04/01/21 (Call 01/01/21)		9,822		10,868,149
4.88%, 02/15/44 (Call 08/15/43)		7,050		7,588,138
5.88%, 12/16/36		31,802		38,294,210
5.95%, 04/01/41 (Call 10/01/40)		13,195		16,126,571
Lowe’s Companies Inc.
3.12%, 04/15/22 (Call 01/15/22)^a		1,466		1,467,161
4.65%, 04/15/42 (Call 10/15/41)		12,255		12,259,868

				123,830,839
TOBACCO — 1.49%
Altria Group Inc.
2.85%, 08/09/22^a		3,565		3,339,488
4.00%, 01/31/24		14,000		13,955,197
4.25%, 08/09/42		18,239		16,057,889
4.75%, 05/05/21		21,234		23,147,115
5.38%, 01/31/44^a		12,028		12,503,300
9.25%, 08/06/19		4,508		6,013,590
9.70%, 11/10/18		19,804		26,334,270
9.95%, 11/10/38		3,193		5,064,523
Lorillard Tobacco Co.
6.88%, 05/01/20^a		10,598		12,462,716
8.13%, 06/23/19^a		953		1,192,123
Philip Morris International Inc.
1.13%, 08/21/17		3,350		3,335,383
1.88%, 01/15/19		8,500		8,475,577
2.50%, 08/22/22		10,350		9,704,384
2.90%, 11/15/21^a		9,695		9,557,854
3.88%, 08/21/42		3,625		3,179,967
4.13%, 03/04/43		16,198		14,748,606


Security	Principal (000s)		Value
4.38%, 11/15/41	$	7,449	$	7,071,321
4.50%, 03/26/20		9,364		10,359,107
4.88%, 11/15/43		4,150		4,232,377
5.65%, 05/16/18		21,198		24,528,621
6.38%, 05/16/38^a		16,734		20,406,820
Reynolds American Inc.
3.25%, 11/01/22^a		3,365		3,211,290
4.75%, 11/01/42		14,105		13,338,766

				252,220,284
WIRELESS TELECOMMUNICATION SERVICES — 1.06%
Cellco Partnership/Verizon Wireless Capital LLC
8.50%, 11/15/18		21,127		26,928,204
New Cingular Wireless Services Inc.
8.75%, 03/01/31		6,550		9,622,902
Rogers Communications Inc.
4.10%, 10/01/23 (Call 07/01/23)		8,000		8,167,150
6.80%, 08/15/18		15,400		18,437,263
Vodafone Group PLC
1.25%, 09/26/17		14,500		14,379,456
1.50%, 02/19/18		27,421		27,222,628
1.63%, 03/20/17		7,350		7,436,094
2.50%, 09/26/22		2,750		2,530,335
2.95%, 02/19/23^a		28,500		26,846,900
4.38%, 02/19/43		25,300		22,789,645
5.45%, 06/10/19		5,650		6,513,853
6.15%, 02/27/37		6,525		7,413,064

				178,287,494

TOTAL CORPORATE BONDS & NOTES
(Cost: $15,984,857,056)				16,381,596,564

FOREIGN AGENCY OBLIGATIONS — 0.78%

NORWAY — 0.64%
Statoil ASA
2.45%, 01/17/23^a		7,130		6,694,454
2.65%, 01/15/24		12,322		11,478,219
2.90%, 11/08/20		5,000		5,062,815
3.13%, 08/17/17		16,566		17,603,257
3.15%, 01/23/22^a		5,892		5,918,207
3.70%, 03/01/24		17,000		17,312,185
3.95%, 05/15/43		10,000		9,196,057


SCHEDULESOF INVESTMENTS			137

Schedule of Investments (Continued)

iSHARES^® iBOXX $ INVESTMENT GRADE CORPORATE BOND ETF

February 28, 2014


Security	Principal or Shares (000s)		Value
4.80%, 11/08/43	$	6,000	$	6,352,462
5.10%, 08/17/40		5,275		5,781,819
5.25%, 04/15/19^a		12,573		14,473,840
Series FXD
1.95%, 11/08/18		7,905		7,947,095

				107,820,410
CANADA — 0.14%
Nexen Energy ULC
5.88%, 03/10/35		10,298		11,249,971
6.40%, 05/15/37		11,454		13,326,463

				24,576,434

TOTAL FOREIGN AGENCY OBLIGATIONS
(Cost: $131,271,245)				132,396,844

U.S. GOVERNMENT OBLIGATIONS — 0.24%
U.S. Treasury Notes
1.50%, 12/31/18^a		40,000		40,066,001

				40,066,001

TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost: $39,571,584)				40,066,001

SHORT-TERM INVESTMENTS — 8.66%

MONEY MARKET FUNDS — 8.66%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.13%^d,e,f		1,093,276		1,093,275,531
BlackRock Cash Funds: Prime, SL Agency Shares
0.11%^d,e,f		91,946		91,946,347
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^d,e		278,078		278,077,577

				1,463,299,455

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,463,299,455)				1,463,299,455


	Value
TOTAL INVESTMENTS IN SECURITIES — 106.62%
(Cost: $17,618,999,340)	$	18,017,358,864
Other Assets, Less Liabilities — (6.62)%		(1,119,058,141	)

NET ASSETS — 100.00%	$	16,898,300,723

^a	All or a portion of this security represents a security on loan. See Note 1.

^b	Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect.

^c	This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d	Affiliated issuer. See Note 2.

^e	The rate quoted is the annualized seven-day yield of the fund at period end.

^f	All or a portion of this security represents an investment of securities lending collateral. See Note 1.

See notes to financial statements.


138		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

February 28, 2014


	iShares iBoxx $ High Yield Corporate Bond ETF			iShares iBoxx $ Investment Grade Corporate Bond ETF

ASSETS
Investments, at cost:
Unaffiliated	$	12,871,048,021		$	16,099,715,065
Affiliated (Note 2)		2,542,227,247			1,519,284,275

Total cost of investments	$	15,413,275,268		$	17,618,999,340

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	13,277,187,480		$	16,498,912,605
Affiliated (Note 2)		2,542,227,247			1,518,446,259

Total fair value of investments		15,819,414,727			18,017,358,864
Cash		62,400			—
Receivables:
Investment securities sold		13,575,519			3,009,630
Interest		231,962,809			183,289,808
Capital shares sold		19,739,289			58,974,434

Total Assets		16,084,754,744			18,262,632,736


LIABILITIES
Payables:
Investment securities purchased		33,999,940			175,974,987
Collateral for securities on loan (Note 1)		2,463,984,652			1,185,221,878
Capital shares redeemed		215,585			1,251,703
Securities related to in-kind transactions (Note 4)		532,014			—
Investment advisory fees (Note 2)		5,163,300			1,883,445

Total Liabilities		2,503,895,491			1,364,332,013


NET ASSETS	$	13,580,859,253		$	16,898,300,723


Net assets consist of:
Paid-in capital	$	13,119,247,426		$	16,482,162,358
Undistributed net investment income		66,938,963			48,522,914
Accumulated net realized loss		(11,466,595	)		(30,744,073	)
Net unrealized appreciation		406,139,459			398,359,524

NET ASSETS	$	13,580,859,253		$	16,898,300,723


Shares outstanding^b		143,500,000			144,400,000


Net asset value per share	$	94.64		$	117.02

^a	Securities on loan with values of $2,363,302,047 and $1,145,919,971, respectively. See Note 1.

^b	No par value, unlimited number of shares authorized.

See notes to financial statements.


FINANCIAL STATEMENTS			139

Statements of Operations

iSHARES^® TRUST

Year ended February 28, 2014


	iShares iBoxx $ High Yield Corporate Bond ETF			iShares iBoxx $ Investment Grade Corporate Bond ETF

NET INVESTMENT INCOME
Interest — unaffiliated	$	970,731,755		$	719,289,480
Interest — affiliated (Note 2)		20,801			2,102,109
Securities lending income — affiliated (Note 2)		9,655,953			1,793,359

Total investment income		980,408,509			723,184,948


EXPENSES
Investment advisory fees (Note 2)		75,192,652			28,440,517

Total expenses		75,192,652			28,440,517

Net investment income		905,215,857			694,744,431


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		1,517,649			(23,384,235	)
Investments — affiliated (Note 2)		—			(586,173	)
In-kind redemptions — unaffiliated		380,213,213			788,204,765
In-kind redemptions — affiliated (Note 2)		—			988,364

Net realized gain		381,730,862			765,222,721

Net change in unrealized appreciation/depreciation		(243,049,932	)		(1,495,959,269	)

Net realized and unrealized gain (loss)		138,680,930			(730,736,548	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,043,896,787		$	(35,992,117	)

See notes to financial statements.


140		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST


	iShares iBoxx $ High Yield Corporate Bond ETF						iShares iBoxx $ Investment Grade Corporate Bond ETF
	Year ended February 28, 2014			Year ended February 28, 2013			Year ended February 28, 2014			Year ended February 28, 2013

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	905,215,857		$	1,046,911,356		$	694,744,431		$	896,297,381
Net realized gain		381,730,862			321,382,310			765,222,721			460,397,233
Net change in unrealized appreciation/depreciation		(243,049,932	)		63,903,250			(1,495,959,269	)		166,872,420

Net increase (decrease) in net assets resulting from operations		1,043,896,787			1,432,196,916			(35,992,117	)		1,523,567,034


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(920,212,310	)		(1,045,834,956	)		(719,984,353	)		(889,474,785	)
From net realized gain		—			—			—			(1,970,502	)

Total distributions to shareholders		(920,212,310	)		(1,045,834,956	)		(719,984,353	)		(891,445,287	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		6,299,437,487			5,201,572,482			5,974,503,669			8,500,579,576
Cost of shares redeemed		(7,919,752,649	)		(4,769,162,667	)		(12,357,229,328	)		(4,658,787,969	)

Net increase (decrease) in net assets from capital share transactions		(1,620,315,162	)		432,409,815			(6,382,725,659	)		3,841,791,607

INCREASE (DECREASE) IN NET ASSETS		(1,496,630,685	)		818,771,775			(7,138,702,129	)		4,473,913,354

NET ASSETS
Beginning of year		15,077,489,938			14,258,718,163			24,037,002,852			19,563,089,498

End of year	$	13,580,859,253		$	15,077,489,938		$	16,898,300,723		$	24,037,002,852

Undistributed net investment income included in net assets at end of year	$	66,938,963		$	81,935,416		$	48,522,914		$	73,762,836


SHARES ISSUED AND REDEEMED
Shares sold		68,000,000			57,100,000			51,200,000			71,800,000
Shares redeemed		(85,400,000	)		(52,200,000	)		(107,000,000	)		(39,000,000	)

Net increase (decrease) in shares outstanding		(17,400,000	)		4,900,000			(55,800,000	)		32,800,000

See notes to financial statements.


FINANCIAL STATEMENTS			141

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)


	iShares iBoxx $ High Yield Corporate Bond ETF
	Year ended Feb. 28, 2014			Year ended Feb. 28, 2013			Year ended Feb. 29, 2012			Year ended Feb. 28, 2011			Year ended Feb. 28, 2010
Net asset value, beginning of year	$	93.71		$	91.40		$	91.75		$	86.03		$	68.49

Income from investment operations:
Net investment income^a		5.58			6.15			6.74			7.45			8.31
Net realized and unrealized gain (loss)^b		0.98			2.31			(0.45	)		5.65			17.47

Total from investment operations		6.56			8.46			6.29			13.10			25.78

Less distributions from:
Net investment income		(5.63	)		(6.15	)		(6.64	)		(7.38	)		(8.24	)

Total distributions		(5.63	)		(6.15	)		(6.64	)		(7.38	)		(8.24	)

Net asset value, end of year	$	94.64		$	93.71		$	91.40		$	91.75		$	86.03


Total return		7.31	%		9.68	%		7.35	%		16.11	%		39.50	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	13,580,859		$	15,077,490		$	14,258,718		$	8,257,928		$	4,611,414
Ratio of expenses to average net assets		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		6.01	%		6.73	%		7.60	%		8.44	%		10.30	%
Portfolio turnover rate^c		11	%		19	%		13	%		16	%		67	%

^a	Based on average shares outstanding throughout each period.

^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	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


142		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)


	iShares iBoxx $ Investment Grade Corporate Bond ETF
	Year ended Feb. 28, 2014			Year ended Feb. 28, 2013			Year ended Feb. 29, 2012			Year ended Feb. 28, 2011			Year ended Feb. 28, 2010
Net asset value, beginning of year	$	120.06		$	116.86		$	108.74		$	105.18		$	93.78

Income from investment operations:
Net investment income^a		4.25			4.60			5.00			5.24			5.76
Net realized and unrealized gain (loss)^b		(2.94	)		3.22			8.08			3.58			11.33

Total from investment operations		1.31			7.82			13.08			8.82			17.09

Less distributions from:
Net investment income		(4.35	)		(4.61	)		(4.96	)		(5.26	)		(5.69	)
Net realized gain		—			(0.01	)		—			—			—

Total distributions		(4.35	)		(4.62	)		(4.96	)		(5.26	)		(5.69	)

Net asset value, end of year	$	117.02		$	120.06		$	116.86		$	108.74		$	105.18


Total return		1.19	%		6.81	%		12.37	%		8.59	%		18.70	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	16,898,301		$	24,037,003		$	19,563,089		$	12,940,161		$	12,190,805
Ratio of expenses to average net assets		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Ratio of net investment income to average net assets		3.66	%		3.87	%		4.48	%		4.83	%		5.71	%
Portfolio turnover rate^c		6	%		5	%		4	%		7	%		79	%

^a	Based on average shares outstanding throughout each period.

^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	Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			143

Notes to Financial Statements

iSHARES^® TRUST

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 was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):


iShares Bond ETF	Former Name^a	Diversification Classification
iBoxx $ High Yield Corporate	iShares iBoxx $ High Yield Corporate Bond Fund	Diversified
iBoxx $ Investment Grade Corporate	iShares iBoxx $ Investment Grade Corporate Bond Fund	Diversified

The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

Each Fund may invest in securities of non-U.S. issuers that trade in non-U.S. markets. This involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Funds; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war.

The Funds invest a significant portion of their assets in fixed-income securities. Changes in market interest rates or economic conditions, including the Federal Reserve Bank’s decision in December 2013 to taper its quantitative easing policy, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

1.	*SIGNIFICANT ACCOUNTING POLICIES*


144		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

SECURITY VALUATION

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value 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.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•


NOTESTO FINANCIAL STATEMENTS			145

Notes to Financial Statements (Continued)

iSHARES^® TRUST

the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of February 28, 2014. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.


iShares Bond ETF and Investment Type	Investments
iShares Bond ETF and Investment Type	Level 1		Level 2		Level 3		Total
iBoxx $ High Yield Corporate
Assets:
Corporate Bonds & Notes	$	—	$	13,277,187,480	$	—	$	13,277,187,480
Money Market Funds		2,542,227,247		—		—		2,542,227,247

	$	2,542,227,247	$	13,277,187,480	$	—	$	15,819,414,727


iBoxx $ Investment Grade Corporate
Assets:
Corporate Bonds & Notes	$	—	$	16,381,596,564	$	—	$	16,381,596,564
Foreign Agency Obligations		—		132,396,844		—		132,396,844
U.S. Government Obligations		—		40,066,001		—		40,066,001
Money Market Funds		1,463,299,455		—		—		1,463,299,455

	$	1,463,299,455	$	16,554,059,409	$	—	$	18,017,358,864

SECURITY TRANSACTIONS AND INCOME RECOGNITION

DISTRIBUTIONS TO SHAREHOLDERS

FEDERAL INCOME TAXES


146		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment 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 a 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 value of the loaned securities plus the interest accrued on such securities, if any, 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 plus accrued interest, if any. The market value of the loaned securities is determined at the close of each business day of the Funds and any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates.

As of February 28, 2014, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of February 28, 2014 and the value of the related collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“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. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or repledge the collateral.

As of February 28, 2014, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:


iShares Bond ETF	Market Value of Securities on Loan
iBoxx $ High Yield Corporate	$	2,363,302,047
iBoxx $ Investment Grade Corporate		1,145,919,971

As of February 28, 2014, the value of the related collateral, as disclosed in the Funds’ schedules of investments, exceeded the market value of the securities on loan.


NOTESTO FINANCIAL STATEMENTS			147

Notes to Financial Statements (Continued)

iSHARES^® TRUST

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

For its investment advisory services to the iShares iBoxx $ High Yield Corporate Bond ETF, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:


Investment Advisory Fee		Aggregate Average Daily Net Assets
	0.5000%	First $19 billion
	0.4750^a	Over $19 billion, up to and including $33 billion
	0.4513^a	Over $33 billion, up to and including $58 billion^b
	0.4287^a	Over $58 billion^b

Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

Breakpoint level was added effective July 1, 2013.

Effective July 1, 2013, for its investment advisory services to the iShares iBoxx $ Investment Grade Corporate Bond ETF, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:


Investment Advisory Fee		Aggregate Average Daily Net Assets
	0.1500%	First $121 billion
	0.1425^a	Over $121 billion, up to and including $211 billion
	0.1354^a	Over $211 billion

Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

Prior to July 1, 2013, for its investment advisory services to the iShares iBoxx $ Investment Grade Corporate Bond ETF, BFA was entitled to an annual investment advisory fee of 0.15% based on the Fund’s average daily net assets.

The U.S. Securities and Exchange Commission 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. Effective January 1, 2014 each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, 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% until December 31, 2014 and 0.05% thereafter (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement effective January 1, 2014, (i) each Fund retains 75% of securities lending income and (ii) the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2014, each Fund retained 65% of securities lending income and paid no collateral investment fees.


148		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the year ended February 28, 2014, each Fund paid to BTC the following amounts in total for securities lending agent services and collateral investment fees:


iShares Bond ETF	Fees Paid to BTC
iBoxx $ High Yield Corporate	$	5,034,950
iBoxx $ Investment Grade Corporate		930,532

In addition, commencing the business day following the date that the aggregate securities lending income generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in calendar year 2013 (or lesser amount as may be agreed to by the Funds and BTC) and pursuant to a securities lending agreement, (i) each Fund will receive for the remainder of that calendar year 80% of securities lending income and (ii) the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the year ended February 28, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:


iShares Bond ETF and Name of Affiliated Issuer	Principal Held at Beginning of Year (000s)		Principal Purchased (000s)		Principal Sold (000s)			Principal Held at End of Year (000s)		Value at End of Year		Interest Income		Net Realized Gain (Loss)
iBoxx $ Investment Grade Corporate
PNC Bank N.A.
2.20%, 01/28/19	$	—	$	3,525	$	—		$	3,525	$	3,552,652	$	5,404	$	—
2.70%, 11/01/22		14,250		1,000		—			15,250		14,329,353		390,417		—
2.95%, 01/30/23		5,000		—		—			5,000		4,766,868		146,904		—
3.80%, 07/23/25		—		17,100		—			17,100		17,242,566		260,043		—

										$	39,891,439	$	802,768	$	—

PNC Funding Corp.
2.70%, 09/19/16	$	13,654	$	1,000	$	(14,654	)	$	—	$	—	$	84,933	$	(171,477	)
3.30%, 03/08/22		19,738		10,781		(23,450	)		7,069		7,088,097		598,910		(1,033,375	)
4.38%, 08/11/20		10,208		915		(7,600	)		3,523		3,872,955		267,939		514,296
5.13%, 02/08/20		18,839		930		(16,000	)		3,769		4,294,313		323,101		1,092,747

										$	15,255,365	$	1,274,883	$	402,191


NOTESTO FINANCIAL STATEMENTS			149

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended February 28, 2014 were as follows:


iShares Bond ETF	Purchases		Sales
iBoxx $ High Yield Corporate	$	3,148,077,841	$	1,666,532,702
iBoxx $ Investment Grade Corporate		3,837,511,274		1,117,143,464

In-kind transactions (see Note 4) for the year ended February 28, 2014 were as follows:


iShares Bond ETF	In-kind Purchases		In-kind Sales
iBoxx $ High Yield Corporate	$	4,679,649,597	$	7,725,157,809
iBoxx $ Investment Grade Corporate		3,006,465,321		12,102,870,152

4.	*CAPITAL SHARE TRANSACTIONS*

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 contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.


150		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

5.	*INCOME TAX INFORMATION*

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 net asset values per share. The following permanent differences as of February 28, 2014, attributable to realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares Bond ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
iBoxx $ High Yield Corporate	$	380,100,467	$	—	$	(380,100,467	)
iBoxx $ Investment Grade Corporate		786,864,602		—		(786,864,602	)

The tax character of distributions paid during the years ended February 28, 2014 and February 28, 2013 was as follows:


iShares Bond ETF	2014		2013
iBoxx $ High Yield Corporate
Ordinary income	$	920,212,310	$	1,045,834,956


iBoxx $ Investment Grade Corporate
Ordinary income	$	719,984,353	$	889,474,785
Long-term capital gain		—		1,970,502

	$	719,984,353	$	891,445,287

As of February 28, 2014, the tax components of accumulated net earnings (losses) were as follows:


iShares Bond ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a		Total
iBoxx $ High Yield Corporate	$	66,938,963	$	(11,239,329	)	$	405,912,193	$	461,611,827
iBoxx $ Investment Grade Corporate		48,522,914		(28,579,925	)		396,195,376		416,138,365

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales.

As of February 28, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares Bond ETF	Non- Expiring^a		Expiring 2017		Expiring 2018		Total
iBoxx $ High Yield Corporate	$	4,564,787	$	6,496,723	$	177,819	$	11,239,329
iBoxx $ Investment Grade Corporate		28,579,925		—		—		28,579,925

Must be utilized prior to losses subject to expiration.


NOTESTO FINANCIAL STATEMENTS			151

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the year ended February 28, 2014, the iBoxx $ High Yield Corporate Bond ETF utilized $1,636,983 of its capital loss carryforwards.

As of February 28, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


iShares Bond ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
iBoxx $ High Yield Corporate	$	15,413,502,534	$	532,887,293	$	(126,975,100	)	$	405,912,193
iBoxx $ Investment Grade Corporate		17,621,163,488		580,542,279		(184,346,903	)		396,195,376

Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2014, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

6.	*SUBSEQUENT EVENTS*


152		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares iBoxx $ High Yield Corporate Bond ETF and iShares iBoxx $ Investment Grade Corporate Bond ETF (the “Funds”) at February 28, 2014, the results of each of their operations, the changes in each of their net assets and their financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2014 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

April 21, 2014


REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			153

Notes:


154		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-1010-1014

OCTOBER 31, 2014


2014 ANNUAL REPORT

iShares U.S. ETF Trust

^Ø

iShares Commodities Select Strategy ETF | COMT | NASDAQ

Table of Contents


Management’s Discussion of Fund Performance			5
About Fund Performance			7
Shareholder Expenses			7
Consolidated Schedule of Investments			8
Consolidated Financial Statements			12
Consolidated Financial Highlights			15
Notes to Consolidated Financial Statements			16
Report of Independent Registered Public Accounting Firm			23
Board review and Approval of Investment Advisory Contract			24
Trustee and Officer Information			27

Management’s Discussion of Fund Performance

iSHARES^® COMMODITIES SELECT STRATEGY ETF

Performance as of October 31, 2014


	Cumulative Total Returns
	Since Inception
Fund NAV		1.28%
Fund Market		1.46%
S&P GSCI Commodity Total Return Index		1.13%

The inception date of the Fund was 10/15/14. The first day of secondary market trading was 10/16/14.

The S&P GSCI^TM Commodity Total Return Index is an unmanaged index that measures the performance of general commodity price movements and inflation in the world economy.

For the fiscal period ended 10/31/14, the Fund did not have six months of performance and therefore line graphs are not presented.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (10/15/14)^a		Ending Account Value (10/31/14)		Expenses Paid During Period^b		Beginning Account Value (5/1/14)		Ending Account Value (10/31/14)		Expenses Paid During Period^b		Annualized Expense Ratio
$	1,000.00	$	1,012.80	$	0.21	$	1,000.00	$	1,022.80	$	2.45		0.48%

The beginning of the period (commencement of operations) is October 15, 2014.

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (16 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 7 for more information.


MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

The iShares Commodities Select Strategy ETF (the “Fund”) seeks total return by providing investors with broad commodity exposure. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. For the period from October 15, 2014 (inception date of the Fund) through October 31, 2014 (the “reporting period”), the total return for the Fund was 1.28%, net of fees.

The Fund seeks to achieve its investment objective through investments in commodity-linked futures contracts and commodity producer stocks, thereby obtaining exposure to the commodities markets.

As of October 31, 2014, energy (including energy futures and stocks) comprised approximately two-thirds of the Fund’s portfolio. The price of oil ended the reporting period at its lowest level in more than two years, reflecting increased production in the U.S., declining demand in Europe and Asia, and a stronger U.S. dollar (oil is traded primarily in U.S. dollars). Natural gas prices have been buffeted by increased shale gas production in the U.S. and volatility in demand resulting from unusual weather patterns.

Agriculture futures and stocks comprised approximately 16% of the portfolio at the end of the reporting period. A record-breaking growing season in 2014, including an all-time high in global wheat production, and weaker global economic growth led to a general decline in the prices of agricultural products.

Metals futures and stocks comprised approximately 12% of the portfolio as of October 31, 2014. Metals prices have been mixed but generally weaker as slowing economic growth in many regions of the globe led to reduced demand for metals.

PORTFOLIO ALLOCATION

As of 10/31/14


Sector/Investment Type	% of Net Assets
Energy Equities		15.18	%
Agriculture Equities		8.56
Base Metals Equities		4.72
Precious Metals Equities		3.86
Timber Equities		3.06
Short-Term Investments		49.67
Cash		15.12
Other Assets (Liabilities)		(0.17	)

TOTAL		100.00	%

COMMODITY-LINKED FUTURES

As of 10/31/14


Sector Exposure¹	% of Net Assets
Energy Futures		53.54	%
Agriculture Futures		7.55
Base Metals Futures		1.91
Precious Metals Futures		0.54
Livestock Futures		1.44

TOTAL		64.98	%

Exposures are calculated as the notional value of the futures contracts adjusted for net unrealized appreciation (depreciation) as a percentage of net assets.


6		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

About Fund Performance

Shareholder Expenses

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2014 (or commencement of operations, as applicable) and held through October 31, 2014, is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES			7

Consolidated Schedule of Investments

iSHARES^® COMMODITIES SELECT STRATEGY ETF

October 31, 2014


Security	Shares		Value

COMMON STOCKS — 35.38%

AGRICULTURAL PRODUCTS — 1.42%
Archer-Daniels-Midland Co.		4,180	$	196,460
Bunge Ltd.		944		83,686
Fresh Del Monte Produce Inc.		228		7,321

				287,467
ALUMINUM — 0.34%
Alcoa Inc.		3,476		58,258
Aluminum Corp. of China Ltd. Class H SP ADR^a		468		5,204
Constellium NV Class A^a		260		5,265

				68,727
COAL & CONSUMABLE FUELS — 0.10%
Cameco Corp.		392		6,813
CONSOL Energy Inc.		228		8,390
Denison Mines Corp.^a		444		413
Peabody Energy Corp.		268		2,795
Yanzhou Coal Mining Co. Ltd. Class H SP ADR		192		1,615

				20,026
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS — 1.63%
AGCO Corp.		672		29,776
CNH Industrial NV		7,348		59,886
Deere & Co.		2,820		241,223

				330,885
DIVERSIFIED METALS & MINING — 4.38%
BHP Billiton Ltd. SP ADR		5,536		329,060
BHP Billiton PLC SP ADR		3,644		189,634
Freeport-McMoRan Inc.		3,584		102,144
HudBay Minerals Inc.		800		6,136
Nevsun Resources Ltd.		688		2,332
Rio Tinto PLC SP ADR		4,280		205,312
Sesa Sterlite Ltd. SP ADR		1,024		17,244
Teck Resources Ltd. Class B		1,612		25,437
Turquoise Hill Resources Ltd.^a		3,404		11,403

				888,702
FERTILIZERS & AGRICULTURAL CHEMICALS — 5.52%
Agrium Inc.		996		97,429
CF Industries Holdings Inc.		344		89,440
Monsanto Co.		3,636		418,285
Mosaic Co. (The)		2,208		97,837
Potash Corp. of Saskatchewan Inc.		5,752		196,546


Security	Shares		Value

Sociedad Quimica y Minera de Chile SA Series B SP ADR		644	$	15,282
Syngenta AG SP ADR		3,280		203,360

				1,118,179
FOREST PRODUCTS — 0.03%
Deltic Timber Corp.		88		5,728

				5,728
GOLD — 3.31%
Agnico-Eagle Mines Ltd.		1,708		40,138
Alamos Gold Inc.^a		1,036		7,739
AngloGold Ashanti Ltd. SP ADR^a		3,276		27,092
AuRico Gold Inc.		2,024		6,497
B2Gold Corp.^a		5,600		9,352
Barrick Gold Corp.		9,484		112,575
Compania de Minas Buenaventura SA SP ADR		1,504		13,837
Eldorado Gold Corp.		5,832		31,959
Franco-Nevada Corp.		1,268		59,279
Gold Fields Ltd. SP ADR		5,772		18,413
Goldcorp Inc.		6,624		124,399
Harmony Gold Mining Co. Ltd. SP ADR^a		2,984		4,834
IAMGOLD Corp.^a		3,072		5,806
Kinross Gold Corp.^a		9,320		20,038
New Gold Inc.^a		4,104		14,774
Newmont Mining Corp.		4,060		76,166
NovaGold Resources Inc.^a		1,912		4,723
Pretium Resources Inc.^a		780		3,557
Primero Mining Corp.^a		548		1,874
Randgold Resources Ltd.		748		43,541
Rubicon Minerals Corp.^a		3,016		2,570
Sandstorm Gold Ltd.^a		956		2,763
Sibanye Gold Ltd. SP ADR		1,464		10,760
Yamana Gold Inc.		7,172		28,544

				671,230
INTEGRATED OIL & GAS — 8.40%
BP PLC SP ADR		3,508		152,458
Cenovus Energy Inc.		852		21,096
Chevron Corp.		2,136		256,213
China Petroleum & Chemical Corp. Class H SP ADR		288		25,050
Ecopetrol SA SP ADR		276		7,397
Eni SpA SP ADR		1,512		64,260
Exxon Mobil Corp.		4,796		463,821
Hess Corp.		296		25,104
Imperial Oil Ltd.		288		13,789


8		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

October 31, 2014


Security	Shares		Value

InterOil Corp.^a		44	$	2,492
Occidental Petroleum Corp.		876		77,903
Petrobras Argentina SA Class B SP ADR		76		513
PetroChina Co. Ltd. Class H SP ADR		236		29,618
Petroleo Brasileiro SA SP ADR		1,676		19,609
Royal Dutch Shell PLC Class A SP ADR		2,212		158,799
Royal Dutch Shell PLC Class B SP ADR		1,380		103,045
Sasol Ltd. SP ADR		564		28,307
Statoil ASA SP ADR		1,184		27,173
Suncor Energy Inc.		1,648		58,570
Total SA SP ADR		2,660		159,307
YPF SA SP ADR		216		7,597

				1,702,121
OIL & GAS DRILLING — 0.36%
Diamond Offshore Drilling Inc.		84		3,168
Ensco PLC Class A		296		12,015
Helmerich & Payne Inc.		136		11,808
Nabors Industries Ltd.		364		6,497
Nobel Corp. PLC		320		6,694
North Atlantic Drilling Ltd.		92		569
Ocean Rig UDW Inc.		64		880
Pacific Drilling SA^a		84		612
Precision Drilling Corp.		368		3,062
Rowan Companies PLC Class A		156		3,786
Seadrill Ltd.		468		10,764
Transocean Ltd.		428		12,767
Vantage Drilling Co.^a		232		224

				72,846
OIL & GAS EQUIPMENT & SERVICES — 1.53%
Baker Hughes Inc.		456		24,150
Cameron International Corp.^a		212		12,625
CGG SP ADR^a		184		1,078
CHC Group Ltd.^a		36		242
Core Laboratories NV		44		6,139
FMC Technologies Inc.^a		244		13,674
Frank’s International NV		36		620
Halliburton Co.		888		48,964
McDermott International Inc.^a		248		952
National Oilwell Varco Inc.		448		32,543
Oceaneering International Inc.		112		7,870
Schlumberger Ltd.		1,356		133,783
Superior Energy Services Inc.		160		4,024
Tenaris SA SP ADR		248		9,831
Tesco Corp.		40		762


Security	Shares		Value

Weatherford International Ltd.^a		808	$	13,267

				310,524
OIL & GAS EXPLORATION & PRODUCTION — 3.06%
Advantage Oil & Gas Ltd.^a		192		820
Anadarko Petroleum Corp.		568		52,131
Apache Corp.		432		33,350
Baytex Energy Corp.		188		5,743
Bellatrix Exploration Ltd.^a		216		1,004
Cabot Oil & Gas Corp.		468		14,555
Canadian Natural Resources Ltd.		1,228		42,833
Chesapeake Energy Corp.		584		12,953
Cimarex Energy Co.		96		10,912
CNOOC Ltd. SP ADR		180		28,147
Cobalt International Energy Inc.^a		332		3,888
Concho Resources Inc.^a		128		13,956
ConocoPhillips		1,384		99,856
Continental Resources Inc.^a		96		5,411
Crescent Point Energy Corp.		444		14,665
Denbury Resources Inc.		396		4,910
Devon Energy Corp.		432		25,920
Encana Corp.		832		15,500
Energen Corp.		84		5,687
Energy XXI (Bermuda) Ltd.		104		800
Enerplus Corp.		232		3,318
EOG Resources Inc.		616		58,551
EQT Corp.		172		16,175
Geopark Ltd.^a		28		241
Kodiak Oil & Gas Corp.^a		300		3,237
Kosmos Energy Ltd.^a		124		1,157
Marathon Oil Corp.		760		26,904
Murphy Oil Corp.		188		10,037
Noble Energy Inc.		404		23,282
Pengrowth Energy Corp.		596		2,402
Penn West Petroleum Ltd.		556		2,513
Pioneer Natural Resources Co.		160		30,250
QEP Resources Inc.		188		4,713
Range Resources Corp.		188		12,859
Southwestern Energy Co.^a		396		12,874
Talisman Energy Inc.		1,072		6,839
Ultra Petroleum Corp.^a		172		3,922
Whiting Petroleum Corp.^a		132		8,084

				620,399
OIL & GAS REFINING & MARKETING — 0.53%
Cosan Ltd. Class A		156		1,652
HollyFrontier Corp.		184		8,350


CONSOLIDATED SCHEDULEOF INVESTMENTS			9

Consolidated Schedule of Investments (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

October 31, 2014


Security	Shares		Value

Marathon Petroleum Corp.		260	$	23,634
Phillips 66		516		40,506
Tesoro Corp.		120		8,569
Valero Energy Corp.		488		24,444

				107,155
OIL & GAS STORAGE & TRANSPORTATION — 1.20%
Cheniere Energy Inc.^a		224		16,800
Dorian LPG Ltd.^a		24		344
Enbridge Inc.		864		40,919
GasLog Ltd.		36		750
Golar LNG Ltd.		84		4,713
Kinder Morgan Inc.		672		26,006
Kinder Morgan Management LLC^a		122		11,589
Navigator Holdings Ltd.^a		20		485
Nordic American Tankers Ltd.		92		777
ONEOK Inc.		212		12,495
Pembina Pipeline Corp.^a		332		13,758
Scorpio Tankers Inc.		164		1,432
Ship Finance International Ltd.		60		1,031
Spectra Energy Corp.		684		26,765
Teekay Corp.		48		2,806
TransCanada Corp.		720		35,489
Tsakos Energy Navigation Ltd.		68		460
Ultrapar Participacoes SA SP ADR		444		9,635
Williams Companies Inc. (The)		684		37,969

				244,223
PAPER PACKAGING — 0.72%
MeadWestvaco Corp.		1,316		58,128
Packaging Corp. of America		768		55,357
Sonoco Products Co.		796		32,533

				146,018
PAPER PRODUCTS — 1.11%
Fibria Celulose SA SP ADR^a		1,732		21,182
International Paper Co.		3,340		169,071
KapStone Paper and Packaging Corp.^a		660		20,302
Resolute Forest Products Inc.^a		740		13,734

				224,289
PRECIOUS METALS & MINERALS — 0.07%
Dominion Diamond Corp.^a		1,044		14,626

				14,626
SILVER — 0.47%
First Majestic Silver Corp.^a		984		5,048
Fortuna Silver Mines Inc.^a		1,056		3,685
MAG Silver Corp.^a		488		2,948


Security	Shares		Value

Pan American Silver Corp.		1,268	$	11,704
Silver Standard Resources Inc.^a		676		2,954
Silver Wheaton Corp.		2,996		52,040
Tahoe Resources Inc.^a		1,032		17,916

				96,295
SPECIALIZED REITS — 1.20%
Plum Creek Timber Co. Inc.		1,384		56,758
Potlatch Corp.		316		13,901
Rayonier Inc.		988		33,068
Weyerhaeuser Co.		4,132		139,910

				243,637

TOTAL COMMON STOCKS
(Cost: $7,016,294)				7,173,077

SHORT-TERM INVESTMENTS — 49.67%

MONEY MARKET FUNDS — 49.67%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%^b,c		10,069,712		10,069,712

				10,069,712

TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,069,712)				10,069,712

TOTAL INVESTMENTS IN SECURITIES — 85.05%
(Cost: $17,086,006)				17,242,789
Other Assets, Less Liabilities — 14.95%				3,030,299

NET ASSETS — 100.00%			$	20,273,088

SP ADR — Sponsored American Depositary Receipts

^a	Non-income earning security.

^b	Affiliated issuer. See Note 2.

^c	The rate quoted is the annualized seven-day yield of the fund at period end.


10		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

October 31, 2014

Open futures contracts as of October 31, 2014 were as follows^d:


Issue	Number of Contracts Purchased (Sold)		Expiration	Exchange		Notional Value		Unrealized Appreciation (Depreciation)
Aluminum		2	Jun. 2015		London Metal Exchange	$	102,350	$	5,368
Brent Crude Oil		48	Jun. 2015		New York Mercantile Exchange		4,254,720		81,568
KC Red Wheat		3	Mar. 2015		Chicago Board of Trade		89,850		865
Cocoa		1	May 2015		ICE Futures U.S.		28,870		(2,064	)
Coffee		1	May 2015		ICE Futures U.S.		73,050		(10,147	)
Copper		1	Dec. 2014		London Metal Exchange		168,250		1,909
Corn		20	May 2015		Chicago Board of Trade		398,000		28,318
Cotton		4	Mar 2015		ICE Futures U.S.		125,840		2,291
Gold		1	Apr. 2015		COMEX		117,290		(7,313	)
Lead		1	Jun. 2015		London Metal Exchange		50,569		15
Lean Hogs		3	Dec. 2014		Chicago Mercantile Exchange		105,630		(4,691	)
Live Cattle		3	Jun. 2015		Chicago Mercantile Exchange		186,840		4,429
Natural Gas		49	Apr. 2015		New York Mercantile Exchange		1,797,320		(7,161	)
Soybean		5	May 2015		Chicago Board of Trade		264,500		19,770
Sugar		9	Jul. 2015		ICE Futures U.S.		167,530		(4,870	)
Wheat		12	May 2015		Chicago Board of Trade		331,950		16,884
WTI Crude Oil		59	Dec. 2014		ICE Futures Europe		4,751,860		(23,737	)
Zinc		1	May 2015		London Metal Exchange		57,913		684

Net Unrealized Appreciation								$	102,118

^d	Represents positions held in the Subsidiary.

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULEOF INVESTMENTS			11

Consolidated Statement of Assets and Liabilities

iSHARES^® COMMODITIES SELECT STRATEGY ETF

October 31, 2014



ASSETS
Investments, at cost:
Unaffiliated	$	7,016,294
Affiliated (Note 2)		10,069,712

Total cost of investments	$	17,086,006

Investments in securities, at fair value (Note 1):
Unaffiliated	$	7,173,077
Affiliated (Note 2)		10,069,712

Total fair value of investments		17,242,789
Cash^a		2,540,021
Cash pledged to broker^a		524,000
Receivables:
Dividends and interest		2,243
Futures variation margin		7,975

Total Assets		20,317,028


LIABILITIES
Payables:
Futures variation margin		39,590
Foreign taxes (Note 1)		90
Investment advisory fees (Note 2)		4,260

Total Liabilities		43,940


NET ASSETS	$	20,273,088


Net assets consist of:
Paid-in capital	$	20,016,294
Accumulated net investment loss		(2,015	)
Net unrealized appreciation		258,809

NET ASSETS	$	20,273,088


Shares outstanding^b		400,000


Net asset value per share	$	50.68

^a	Represents assets held in the Subsidiary.

^b	No par value, unlimited number of shares authorized.

See notes to consolidated financial statements.


12		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Consolidated Statement of Operations

iSHARES^® COMMODITIES SELECT STRATEGY ETF

Period from October 15, 2014 (commencement of operations) to October 31, 2014



NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	2,241
Interest — affiliated (Note 2)		4

Total investment income		2,245


EXPENSES
Investment advisory fees (Note 2)		4,260

Total expenses		4,260

Net investment loss		(2,015	)


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net change in unrealized appreciation/depreciation on:
Investments		156,693
Futures contracts		102,118
Translation of assets and liabilities in foreign currencies		(2	)

Net change in unrealized appreciation/depreciation		258,809

Net realized and unrealized gain		258,809

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	256,794

^a	Net of foreign withholding tax of $32.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			13

Consolidated Statement of Changes in Net Assets

iSHARES^® COMMODITIES SELECT STRATEGY ETF


	Period from October 15, 2014^a to October 31, 2014

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment loss	$	(2,015	)
Net change in unrealized appreciation/depreciation		258,809

Net increase in net assets resulting from operations		256,794


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		20,016,294

Net increase in net assets from capital share transactions		20,016,294

INCREASE IN NET ASSETS		20,273,088

NET ASSETS
Beginning of period		—

End of period	$	20,273,088

Accumulated net investment loss included in net assets at end of period	$	(2,015	)


SHARES ISSUED
Shares sold		400,000

Net increase in shares outstanding		400,000

^a	Commencement of operations.

See notes to consolidated financial statements.


14		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights

iSHARES^® COMMODITIES SELECT STRATEGY ETF

(For a share outstanding throughout the period)


	Period from Oct. 15, 2014^a to Oct. 31, 2014
Net asset value, beginning of period	$	50.04

Income from investment operations:
Net investment income (loss)^b		(0.01	)
Net realized and unrealized gain^c		0.65

Total from investment operations		0.64

Net asset value, end of period	$	50.68


Total return		1.28	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	20,273
Ratio of expenses to average net assets^e		0.48	%
Ratio of net investment income (loss) to average net assets^e		(0.23	)%
Portfolio turnover rate^f		0	%

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			15

Notes to Consolidated Financial Statements

iSHARES^® COMMODITIES SELECT STRATEGY ETF

These consolidated financial statements relate only to the following fund (the “Fund”):

iShares ETF

Diversification

Classification

Commodities Select Strategy^a

Non-diversified

The Fund commenced operations on October 15, 2014.

The Fund carries out its investment strategies associated with investment in commodity-linked futures contracts and other derivatives (“commodity-linked investments”) by investing up to 25% of its total assets in iShares Commodities Strategy Cayman Ltd., a wholly-owned subsidiary of the Fund organized in the Cayman Islands (the “Subsidiary”). The investment adviser of the Fund also serves as the investment adviser to the Subsidiary. Investments in the Subsidiary enable the Fund to hold the commodity-linked investments and satisfy regulated investment company tax requirements. As of October 31, 2014, the net assets of the Subsidiary were $3,032,406 which represented 14.96% of the Fund’s consolidated net assets. For the period from October 15, 2014 (commencement of operations) to October 31, 2014 the Subsidiary had no net investment income, no realized gains or losses and $102,118 of net unrealized appreciation. The accompanying consolidated schedule of investments and consolidated financial statements for the Fund include the positions and accounts, respectively, of its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.

Pursuant to the Trust’s organizational documents, the Fund’s officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

The following significant accounting policies are consistently followed by the Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946 (ASC 946).

SECURITY VALUATION

The Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Fund. The investments of the Fund are valued pursuant to


16		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

•

Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the 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.

•

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

•

Futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.


NOTESTO CONSOLIDATED FINANCIAL STATEMENTS			17

Notes to Consolidated Financial Statements (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

As of October 31, 2014, the value of each of the Fund’s investments was classified as Level 1. The breakdown of the Fund’s investments into major categories is disclosed in its consolidated schedule of investments.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2014 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Fund are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of October 31, 2014, if any, are disclosed in the Fund’s consolidated statement of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.

RECENT ACCOUNTING STANDARD


18		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

is effective for financial statements for fiscal years beginning after December 15, 2014, and interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statements and disclosures.

2.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Fund, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees, litigation expenses and any extraordinary expenses.

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

BFA has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Adviser”), an affiliate of BFA, under which BFA pays the Sub-Adviser for services it provides to the Fund and the Subsidiary.

For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee of 0.48% based on the average daily net assets of the Fund.

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.

The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the consolidated statement of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Fund for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BlackRock Institutional Trust Company, N.A. and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the period ended October 31, 2014, were $ — and $ —, respectively. In-kind purchases and sales (see Note 4) for the period ended October 31, 2014, were $7,016,294 and $ —, respectively.

4.	*CAPITAL SHARE TRANSACTIONS*

Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the consolidated statements of changes in net assets.


NOTESTO CONSOLIDATED FINANCIAL STATEMENTS			19

Notes to Consolidated Financial Statements (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the consolidated statement of changes in net assets.

5.	*FUTURES CONTRACTS*

The Fund may purchase or sell futures contracts as part of its investment strategy. A futures contract is a standardized, exchange-traded agreement to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures contract, the Fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held by the Fund as of October 31, 2014 and the related locations in the consolidated statement of assets and liabilities, presented by risk exposure category:


Assets
Commodity contracts:
Variation margin / Net assets consist of — net unrealized appreciation^a	$	162,101

Represents cumulative appreciation of futures contracts as reported in the consolidated schedule of investments. Only current day’s variation margin is reported separately within the consolidated statement of assets and liabilities.


Liabilities
Commodity contracts:
Variation margin / Net assets consist of — net unrealized depreciation^b	$	59,983

Represents cumulative depreciation of futures contracts as reported in the consolidated schedule of investments. Only current day’s variation margin is reported separately within the consolidated statement of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Fund during the period ended October 31, 2014 and the related locations in the consolidated statement of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Commodity contracts:
Futures contracts	$	—	$	102,118


20		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

The following table shows the average quarter-end balances of open futures contracts for the period ended October 31, 2014:


Average number of contracts purchased		223
Average value of contracts purchased	$	13,072,331

6.	*MARKET AND CREDIT RISK*

In the normal course of business, the Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks the Fund is exposed to include market risk and credit risk. The Fund’s prospectus provides details of these and other types of risk.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss the Fund may suffer through holding market positions in the face of market movements. The Fund is exposed to market risk by virtue of its investment in equity and financial derivative instruments. The fair value of securities held by the Fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of the Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s consolidated schedule of investments.

The Fund invests all or substantially all of its assets in securities and derivatives linked to commodities or commodities markets. Commodity prices may be influenced or characterized by unpredictable factors, including, where applicable, high volatility, changes in supply and demand relationships, weather, agriculture, trade, pestilence, political instability, changes in interest rates and monetary and other governmental policies. Securities of companies held by the Fund that are dependent on a single commodity, or are concentrated in a single commodity sector, may typically exhibit volatility attributable to commodity prices.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its consolidated schedule of investments.

The Fund invests a substantial amount of its assets in securities of non-U.S. issuers that trade in non-U.S. markets. This involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets.

CREDIT RISK


NOTESTO CONSOLIDATED FINANCIAL STATEMENTS			21

Notes to Consolidated Financial Statements (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

financial stability of those counterparties. Financial assets, which potentially expose the Fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its consolidated statement of assets and liabilities.

7.	*INCOME TAX INFORMATION*

The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes and any net income or net gains will pass through to the Fund as such. Accordingly, the net investment income (loss) and realized gains (losses) reported in the Fund’s financial statements for such investments held by the Subsidiary may differ significantly from distributions. In addition, if a net loss is realized by the Subsidiary in any taxable year, the loss will not be available to offset the Fund’s ordinary income and/or capital gains for that year.

As of October 31, 2014, the tax components of accumulated net earnings (losses) were as follows:

iShares ETF

Undistributed
Ordinary
Income

Net

Unrealized
Gains (Losses)^a

Total

Commodities Select Strategy

92,128

164,666

256,794

^a	The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the realization for tax purposes of unrealized gains (losses) on certain futures contracts.

The Fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The 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 October 31, 2014, the cost of investments for federal income tax purposes was $17,180,149. Net unrealized appreciation was $62,640, of which $277,217 represented gross unrealized appreciation on securities and $214,577 represented gross unrealized depreciation on securities.

Management has analyzed tax laws and regulations and their application to the Fund as of October 31, 2014, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Fund’s consolidated financial statements.

8.	*SUBSEQUENT EVENTS*

Management has evaluated the impact of all subsequent events on the Fund through the date the consolidated financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the consolidated financial statements.


22		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

iShares U.S. ETF Trust:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Commodities Select Strategy ETF (the “Fund”) at October 31, 2014, the results of its operations, the changes in its net assets and its financial highlights for the period October 15, 2014 (commencement of operations) through October 31, 2014, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at October 31, 2014 by correspondence with the custodian, transfer agent and brokers, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

December 19, 2014


REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			23

Board Review and Approval of Investment Advisory

Contract

iSHARES^® COMMODITIES SELECT STRATEGY ETF

At a meeting held on May 15-16, 2014, the Board, including a majority of the Independent Trustees, approved the selection of BFA as investment adviser and approved the proposed Advisory Contract for the Fund, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Trustees were advised by their independent counsel throughout the process.

In selecting BFA and approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other exchange traded funds (including a fund sponsored by an “at cost” service provider) (the “Lipper Group”). The Board was provided with a detailed description of Lipper’s proprietary ETF methodology used by Lipper to determine the applicable Lipper Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information provided in Lipper’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the proposed investment advisory fee rate and overall expenses for the Fund were lower than the median of the investment advisory fee rates and overall expenses of the funds in the Lipper Group.

Based on this review, the other factors considered at the meeting, and their general knowledge of fund pricing, the Board concluded that the proposed investment advisory fee and expense levels of the Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting iShares funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced in recent years, including in such areas as investor education, product management, customized portfolio consulting support, capital markets support, and proprietary risk and performance analytics tools. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that 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 appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and


24		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

strategies provided at the June 12-13, 2014 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA on at least an annual basis following the Fund’s launch and will thus be in a position to evaluate whether, following the expiration of the Advisory Contract’s initial two-year term, any adjustments in the Fund’s fees would be appropriate.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Fund’s assets. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually following an initial two-year period, concluded that the investment advisory fee rate incorporates potential economies of scale and supported the Board’s approval of the Advisory Contract.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board 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 and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, separately managed accounts, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services to be provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and Other Accounts, on the other. 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 exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses to be borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA generally does not use soft dollars


BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT			25

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® COMMODITIES SELECT STRATEGY ETF

or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board considered the potential payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, will be reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that the existence of any such ancillary benefits would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Contract.

Based on the considerations described above, the Board determined that the investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining and concluded that it is in the best interest of the Fund and its shareholders to approve the Advisory Contract.


26		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information

iSHARES^® U.S. ETF TRUST

The registered investment companies advised by BFA or its affiliates are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc., a Director of iShares MSCI Russia Capped ETF, Inc. and a Trustee of iShares Trust and, as a result, oversees a total of 294 funds (as of October 31, 2014) within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito and Mark Wiedman, the address of each Trustee and Officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito and Mr. Wiedman is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Robert H. Silver as its Independent Chairman. 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

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.

Mark Wiedman 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.


27		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Independent Trustees



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert H. Silver (59)	Trustee (since 2011); Independent Chairman (since 2012).	President and Co-Founder of The Bravitas Group, Inc. (since 2006); Director and Vice Chairman of the YMCA of Greater NYC (2001-2011); Broadway Producer (2006-2011); Co-Founder and Vice President of Parentgiving Inc. (since 2008); Director and Member of the Audit and Compensation Committee of EPAM Systems, Inc. (2006-2009); President and Chief Operating Officer of UBS Financial Services Inc. (formerly Paine Webber Inc.) (2003-2005) and various executive positions with UBS and its affiliates (1988-2005); CPA and Audit Manager of KPMG, LLP (formerly Peat Marwick Mitchell) (1977-1983).	Trustee of iShares Trust (since 2007); Director of iShares, Inc. (since 2007); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Independent Chairman of iShares, Inc., iShares MSCI Russia Capped ETF, Inc. and iShares Trust (since 2012).
Cecilia H. Herbert (65)	Trustee (since 2011); Nominating and Governance Committee Chair and Equity Plus Committee Chair (since 2012).	Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Member (since 1992) and Chair (1994-2005) of the Investment Committee, Archdiocese of San Francisco; Trustee and Member of the Investment Committee, WNET, the New York public broadcasting/media company (since 2011).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of Forward Funds (34 portfolios) (since 2009).
Charles A. Hurty (71)	Trustee (since 2011); Audit Committee Chair (since 2011).	Retired; Partner, KPMG LLP (1968-2001).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of GMAM Absolute Return Strategy Fund (1 portfolio) (since 2002); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).

John E. Kerrigan (59)	Trustee (since 2011); Fixed Income Plus Committee Chair (since 2012).	Chief Investment Officer, Santa Clara University (since 2002).	Trustee of iShares Trust (since 2005); Director of iShares, Inc. (since 2005); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010).


TRUSTEEAND OFFICER INFORMATION			28

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Independent Trustees (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
John E. Martinez (53)	Trustee (since 2011); Securities Lending Committee Chair (since 2012).	Director of FirstREX Agreement Corp. (formerly EquityRock, Inc.) (since 2005).	Trustee of iShares Trust (since 2003); Director of iShares, Inc. (since 2003); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010).
George G.C. Parker (75)	Trustee (since 2011).	Dean Witter Distinguished Professor of Finance, Emeritus, Stanford University Graduate School of Business (Professor since 1973; Emeritus since 2006).	Trustee of iShares Trust (since 2000); Director of iShares, Inc. (since 2002); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of Tejon Ranch Company (since 1999); Director of Threshold Pharmaceuticals (since 2004); Director of Colony Financial, Inc. (since 2009); Director of First Republic Bank (since 2010).

Madhav V. Rajan (50)	Trustee (since 2011); 15(c) Committee Chair (since 2012).	Robert K. Jaedicke Professor of Accounting and Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Visiting Professor, University of Chicago (2007-2008).	Trustee of iShares Trust (since 2011); Director of iShares, Inc. (since 2011); Director of iShares MSCI Russia Capped ETF, Inc. (since 2011), Director, Cavium, Inc. (since 2013).


29		2014 iSHARES ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® U.S. ETF TRUST

Officers



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Manish Mehta (43)	President (since 2013).	Managing Director, BlackRock, Inc. (since 2009); Chief Operating Officer for iShares (since 2009); Head of Strategy and Corporate Development, BGI (2005-2009); Chief of Staff to the CEO, BGI (2005-2009).

Jack Gee (55)	Treasurer and Chief Financial Officer (since 2011).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009); Director of Fund Administration of Intermediary Investor Business, BGI (2004-2009).

Edward B. Baer (46)	Vice President and Chief Legal Officer (since 2012).	Managing Director of Legal & Compliance, BlackRock, Inc. (since 2006); Director of Legal & Compliance, BlackRock, Inc. (2004-2006).

Eilleen M. Clavere (62)	Secretary (since 2011).	Director of Global Fund Administration, BlackRock, Inc. (since 2009); Director of Legal Administration of Intermediary Investor Business, BGI (2006-2009); Legal Counsel and Vice President of Atlas Funds, Atlas Advisers, Inc. and Atlas Securities, Inc. (2005-2006); Counsel at Kirkpatrick & Lockhart LLP (2001-2005).

Scott Radell (45)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BGI (2007-2009); Credit Portfolio Manager, BGI (2005-2007); Credit Research Analyst, BGI (2003-2005).

Amy Schioldager (52)	Executive Vice President (since 2011).	Senior Managing Director, BlackRock, Inc. (since 2009); Global Head of Index Equity, BGI (2008-2009); Global Head of U.S. Indexing, BGI (2006-2008); Head of Domestic Equity Portfolio Management, BGI (2001-2006).

Ira P. Shapiro (51)	Vice President (since 2011).	Managing Director, BlackRock, Inc. (since 2009); Head of Strategic Product Initiatives for iShares (since 2012); Chief Legal Officer, Exchange-Traded Fund Complex (2007-2012); Associate General Counsel, BGI (2004-2009).


TRUSTEEAND OFFICER INFORMATION			30

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Fund’s website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings on a daily and monthly basis on the Fund’s website.

iS-AR-1011-1014

Item 2. Code of Ethics.

iShares U.S. ETF Trust (the “Registrant”) adopted a new code of ethics on July 1, 2011 that applies to persons appointed by the Registrant’s Board of Trustees as the President and/or Chief Financial Officer, and any persons performing similar functions. For the fiscal year ended October 31, 2014, there were no amendments to any provision of the former and new codes of ethics, nor were there any waivers granted from any provision of the former and new codes of ethics. A copy of the new code of ethics is filed with this Form N-CSR under Item 12(a)(1).

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 Charles A. Hurty, John E. Kerrigan, Robert H. Silver 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 five series of the Registrant for which the fiscal year-end is October 31, 2014 (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 $11,700 for the fiscal year ended October 31, 2013 and $60,490 for the fiscal year ended October 31, 2014.

(b)

Audit-Related Fees – There were no fees billed for the fiscal years ended October 31, 2013 and October 31, 2014 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 the review of the Funds’ tax returns and excise tax calculations, were $3,870 for the fiscal year ended October 31, 2013 and $18,385 for the fiscal year ended October 31, 2014.

(d)

All Other Fees – There were no other fees billed for the fiscal years ended October 31, 2013 and October 31, 2014 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 (including services required by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended October 31, 2014 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees.

(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, $4,486,112 for the fiscal year ended October 31, 2013 and $3,359,197 for the fiscal year ended October 31, 2014.

(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 were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, are compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services do not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, Robert H. Silver, John E. Martinez and Madhav V. Rajan.

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 Chief Financial Officer (the Registrant’s Principal Financial Officer) have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in Section 4(a) of the attached certification.

(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 second fiscal quarter of 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. Exhibits.

(a) (1) Code of Ethics for Senior Officers that is the subject of Item 2 is attached.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares U.S. ETF Trust


By:		/s/ Manish Mehta
		Manish Mehta, President (Principal Executive Officer)
Date:		December 23, 2014

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/ Manish Mehta
		Manish Mehta, President (Principal Executive Officer)
Date:		December 23, 2014

By:		/s/ Jack Gee
		Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:		December 23, 2014

Name (Age)

Position(s)

Principal Occupation(s)
During the Past 5 Years

Other Directorships Held by Trustee

Robert S. Kapito^a (57)

Trustee
(since 2011).

President and Director, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock, Inc.’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); President of the Board of Directors, Periwinkle Theatre for Youth (since 1983).

Trustee of iShares Trust (since 2009); Director of iShares, Inc. (since 2009); Director of iShares MSCI Russia Capped ETF, Inc. (since 2010); Director of BlackRock, Inc. (since 2006).

Mark Wiedman^b (43)

Trustee
(since 2013)

Managing Director, BlackRock, Inc. (since 2007); Global Head of iShares (since 2011); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).

Trustee of iShares Trust (since 2013);
Director of iShares, Inc. (since 2013); Director of iShares MSCI Russia Capped ETF, Inc. (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).