UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT
OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-22649
iShares U.S. ETF Trust
(Exact name of registrant as specified in charter)
c/o: State Street Bank and Trust Company
100 Summer Street, 4th Floor, Boston, MA 02110
(Address of principal executive offices) (Zip code)
The Corporation Trust Company
1209 Orange Street, Wilmington, DE 19801
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415)670-2000
Date of fiscal year end: October 31, 2019
Date of reporting period: October 31, 2019
Item 1. Reports to Stockholders.
Copies of the annual reports transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 are attached.
![]() | OCTOBER 31, 2019 |
2019 Annual Report |
iShares U.S. ETF Trust
· | iShares Short Maturity Bond ETF | NEAR | Cboe BZX |
· | iShares Short Maturity Municipal Bond ETF | MEAR | Cboe BZX |
· | iShares Ultra Short-Term Bond ETF | ICSH | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
Page | ||||
3 | ||||
4 | ||||
10 | ||||
10 | ||||
11 | ||||
Financial Statements | ||||
31 | ||||
32 | ||||
33 | ||||
35 | ||||
38 | ||||
46 | ||||
47 | ||||
48 | ||||
50 | ||||
52 | ||||
54 | ||||
55 |
iShares U.S. ETF Trust
U.S. Bond Market Overview
The U.S. bond market advanced for the 12 months ended October 31, 2019 (“reporting period”). The Bloomberg Barclays U.S. Aggregate Bond Index, a broad measure of U.S. fixed-income performance, returned 11.51%.
U.S. economic growth declined to an annualized rate of approximately 1.9% in the third quarter of 2019. As measured by the consumer price index, the year-over-year U.S. inflation rate, which has remained subdued throughout the current economic expansion, decreased to 1.8% in October 2019.
The delayed impact of higher interest rates early in the reporting period and the trade dispute between the U.S. and China ultimately weighed on economic growth. Specifically, growth in the U.S. manufacturing and industrial sectors slowed to a standstill, while business spending contracted due to modest earnings growth and trade uncertainty. On the upside, consumer spending remained relatively resilient, which kept the U.S. economy afloat. The lowest unemployment rate in almost 50 years led to rising wages, while increased borrowing also supported consumer spending. Similarly, government spending increased, financed by a large increase in borrowing.
In response to deteriorating economic conditions, the U.S. Federal Reserve Bank (“Fed”) shifted to a more accommodative monetary policy starting in January 2019. After raising short-term interest rates in December 2018, the Fed reversed course and lowered them three times in 2019. The Fed also supported short-term lending markets to alleviate liquidity concerns.
Long-term bond yields declined more than short-term yields, reflecting lower inflation expectations and solid demand for the relative stability of U.S. Treasuries amid economic uncertainty. Consequently, the U.S. Treasury yield curve (a graphical representation of U.S. Treasury yields at different maturities) flattened before briefly inverting in August 2019, as10-year Treasury yields dipped belowone-year Treasury yields. An inverted yield curve has preceded each of the last seven economic recessions, so the yield curve inversion during the reporting period exacerbated investors’ concerns about the potential for an impending recession.
Lower interest rates drove gains in the value of U.S. Treasury securities, which are typically more sensitive to changes in interest rates than other types of bonds with similar maturities. U.S. Treasury securities with longer maturities posted significantly higher returns. Deficit spending led the U.S. government to maintain a high level of Treasury bond issuance, which increased supply, but demand from international investors seeking relatively higher U.S. yields helped support prices. Despite the decline in inflation, U.S. Treasury inflation-protected securities, which have even greater price sensitivity than nominal Treasuries at comparable maturities, also posted a solid return.
Corporate bonds benefited from more accommodative interest rate policies, generally posting strong returns. Declining yields meant that investors in search of income increasingly sought out corporate debt, which typically yields more than government debt. Demand for investment-grade corporate bonds was particularly high, as investors sought substitutes forlow-yielding sovereign debt. Narrow spreads (which measure the difference between yields for corporate bonds and lower-risk Treasury bonds) indicated that investors were confident in the financial resilience of U.S. corporations despite a slowing economy. Corporate bond issuance declined sharply early in the reporting period as interest rates rose and investors became concerned about an economic slowdown. However, issuance increased later in the reporting period when interest rates declined and the economy stabilized.
Among securitized bonds, commercial mortgage backed securities (“CMBSs”) posted the strongest performance amid a decline in issuance of new CMBS debt. Bonds backed by individual home mortgages advanced, despite a rise in refinancing due to lower mortgage rates. Other asset-backed bonds, including those backed by auto loans and credit card debt, also gained despite an increase in default rates, as low unemployment supported consumer spending.
MARKET OVERVIEW | 3 |
Fund Summary as of October 31, 2019 | iShares® Short Maturity Bond ETF |
Investment Objective
TheiShares Short Maturity Bond ETF(the “Fund”) seeks to maximize current income by investing, under normal circumstances, at least 80% of its net 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 3.19 | % | 1.69 | % | 1.56 | % | 3.19 | % | 8.71 | % | 9.91 | % | ||||||||||||||||
Fund Market | 3.17 | 1.66 | 1.56 | 3.17 | 8.58 | 9.91 | ||||||||||||||||||||||
Bloomberg Barclays Short-Term Government/Corporate Index | 2.87 | 1.28 | 1.09 | 2.87 | 6.59 | 6.83 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 9/25/13. The first day of secondary market trading was 9/26/13.
The Bloomberg Barclays Short-Term Government/Corporate Index an unmanaged index that measures the performance of government and corporate securities with less than 1 year 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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,015.60 | $ | 1.27 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
4 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Short Maturity Bond ETF |
Portfolio Management Commentary
Short-term investment-grade bonds posted a positive return for the reporting period. Amid declining interest rates, the U.S. Treasury yield curve (a graphical representation of U.S. Treasury rates at different maturities) flattened during the reporting period, which led investors to ultra-short and short-term bonds in search of comparable yields with less sensitivity to changes in interest rates.
In terms of relative performance, the Fund outperformed the broader market, as measured by the Bloomberg Barclays Short-Term Government/Corporate Index. The Fund’s relative performance benefited from overweight positions in corporate bonds and securitized bonds, including asset-backed securities (“ABSs”) and commercial mortgage-backed securities (“CMBSs”). The Fund maintained underweight positions to Treasuries and international government bonds in favor of higher yielding bonds, a decision that detracted marginally from relative performance as government bonds rallied.
From a total return perspective, investment-grade corporate bonds were the largest contributors to the Fund’s performance. Strong demand from investors seeking higher yields and lower volatility helped drive returns of investment-grade corporate bonds. In terms of credit quality, bonds rated Baa, Aaa, and A, which represented approximately 68% of the Fund on average, were the most significant contributors to the Fund’s return.
Bonds issued by banks were notable contributors, as strong balance sheets gave investors confidence that banks would be relatively resilient in the case of an economic downturn. Banks are typically among the largest issuers of corporate debt, in part due to capital requirement regulations. Bonds issued by consumernon-cyclical companies were another source of strength. Pharmaceuticals and healthcare company debt advanced amid rising merger and acquisition activity and efforts to innovate new products.
Among securitized bonds, ABSs contributed notably, as investors seeking yield drove demand amid continuing consumer strength. Collateralized loan obligations performed well, along with prime auto loans and bank credit cards. CMBSs also contributed to the Fund’s return, bolstered by lower supply.
Portfolio Information
ALLOCATION BY INVESTMENT TYPE | ||||
Investment Type | | Percent of Total Investments | (a) | |
Corporate Bonds & Notes | 62.9 | % | ||
Asset-Backed Securities | 25.0 | |||
Collaterized Mortgage Obligations | 8.9 | |||
Commercial Paper | 1.7 | |||
Certificates of Deposit | 0.9 | |||
Repurchase Agreements | 0.5 | |||
U. S. Government & Agency Obligations | 0.1 |
ALLOCATION BY CREDIT QUALITY | ||||
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Aaa | 23.4 | % | ||
Aa | 6.5 | |||
A | 18.3 | |||
Baa | 32.4 | |||
Ba | 5.1 | |||
P-1 | 1.2 | |||
P-2 | 1.0 | |||
Not Rated | 12.1 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Fund Summary as of October 31, 2019 | iShares® Short Maturity Municipal Bond ETF |
Investment Objective
TheiShares Short Maturity Municipal Bond ETF(the “Fund”) seeks to maximizetax-free current income by investing, under normal circumstances, at least 80% of its net assets in municipal securities such that the interest on each bond is exempt from U.S. federal income taxes and the federal alternative minimum tax. Under normal circumstances, the effective duration of the Fund’s portfolio is expected to be 1.2 years or less, as calculated by the management team, and is not expected to exceed 1.5 years. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | 2.16 | % | 1.12 | % | 2.16 | % | 5.33 | % | ||||||||||||
Fund Market | 2.12 | 1.13 | 2.12 | 5.39 | ||||||||||||||||
Bloomberg Barclays Municipal Bond: 1 Year(1-2) Index | 2.84 | 1.17 | 2.84 | 5.59 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 3/3/15. The first day of secondary market trading was 3/5/15.
The Bloomberg Barclays Municipal Bond: 1 Year(1-2) Index is an unmanaged index comprised of national municipal bond issues having a maturity of at least one year and less than two years.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,010.00 | $ | 1.27 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
6 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Short Maturity Municipal Bond ETF |
Portfolio Management Commentary
Short-term municipal bonds posted a positive return for the reporting period amid the Fed’s pivot to accommodative interest rate policy, strong demand, and low rates of issuance. Municipal bond yields declined as investors turned to the asset class, which is often exempt from taxes, to offset the impact of a 2017 law capping deductions for state and local income taxes. Issuance declined due in part to reduced opportunities after the end oftax-exemption status for advance refunding municipal bonds, which are typically issued by municipalities when prevailing interest rates are low in order to refinance existing bonds prior to maturity.
In terms of relative performance, the Fund underperformed the broader market, as measured by the Bloomberg Barclays Municipal Bond: 1 Year(1-2) Index. Overall, the Fund’s tactical positioning detracted from relative performance. The Fund’s shorter duration, a measure of the sensitivity of the price of a bond to changes in interest rates, weighed on relative return as the Fed shifted its interest rate policy from tightening to easing. Although the Fund increased its duration exposure later in the reporting period, this repositioning was not enough to offset the effects of the Fed’s interest rate policy change. The Fund’s overweight allocation to variable-rate demand notes — which periodically reset the interest rate paid to bondholders and were employed by the Fund as a hedge against the effect of interest rate increases — also detracted from relative performance as interest rates declined. In addition, elevated demand for these floating-rate notes (“floaters”), weighed on floater yields at times, which further detracted from the Fund’s relative performance.
In contrast, an overweight allocation to lower-rated bonds contributed to the Fund’s relative return, as did an overweight allocation to nonrated municipal bonds. Bonds with shorter maturity dates andtax-backed bonds from states and municipalities, school districts, and the health and corporate sectors also bolstered the Fund’s relative performance.
Portfolio Information
ALLOCATION BY CREDIT QUALITY | ||||
S&P Credit Rating* | | Percent of Total Investments | (a) | |
AA+ | 0.5 | % | ||
AA | 1.5 | |||
AA- | 1.0 | |||
A+ | 3.3 | |||
A | 30.1 | |||
A- | 3.5 | |||
BBB+ | 14.1 | |||
BBB | 0.5 | |||
Not Rated | 45.5 |
TEN LARGEST STATES | ||||
State | | Percent of Total Investments | (a) | |
New Jersey | 16.2 | % | ||
New York | 13.5 | |||
Georgia | 12.2 | |||
Texas | 9.0 | |||
Ohio | 6.3 | |||
Connecticut | 4.4 | |||
Kansas | 4.3 | |||
Illinois | 4.3 | |||
Louisiana | 4.3 | |||
Florida | 3.2 |
* | Credit quality ratings shown reflect the ratings assigned by S&P Global Ratings, a widely used independent, nationally recognized statistical rating organization. S&P 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 BBB or higher. Below investment grade ratings are credit ratings of BB or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) | Excludes money market funds. |
FUND SUMMARY | 7 |
Fund Summary as of October 31, 2019 | iShares® Ultra Short-Term Bond ETF |
Investment Objective
TheiShares Ultra Short-Term Bond 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 3.25 | % | 1.59 | % | 1.42 | % | 3.25 | % | 8.21 | % | 8.69 | % | ||||||||||||||||
Fund Market | 3.23 | 1.61 | 1.43 | 3.23 | 8.31 | 8.73 | ||||||||||||||||||||||
ICE BofAML6-Month US Treasury Bill Index | 2.71 | 1.21 | 1.05 | 2.71 | 6.20 | 6.32 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 12/11/13. The first day of secondary market trading was 12/13/13.
The ICE BofAML6-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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,015.70 | $ | 0.41 | $ | 1,000.00 | $ | 1,024.80 | $ | 0.41 | 0.08 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
8 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Ultra Short-Term Bond ETF |
Portfolio Management Commentary
Ultra-short-term bonds posted a positive return for the reporting period. Yield spreads tightened in the wake of the Fed’s shift to more accommodative monetary policy, and investors searching for comparable yields with less interest rate sensitivity drove strong inflows to short-dated bonds and money market instruments. The Fund is designed to exhibit little share price volatility in most interest rate environments, as demonstrated during the reporting period.
In terms of relative performance, the Fund outperformed the broader market, as measured by the ICE BofAML6-Month U.S. Treasury Bill Index. Significant exposure to corporate bonds — aimed at locking in higher yields prior to the Fed’s monetary easing — drove relative performance, along with overweight positions in short-dated commercial paper (unsecured loans to banks and other large corporations) and repurchase agreements. Within commercial paper, the Fund benefited from an emphasis onTier-2 securities, which at times carried more attractive yields than higher-rated peers.
From a total return perspective, corporate bonds were the primary drivers of the Fund’s performance as yields declined and their spreads narrowed. Bonds issued by banks were the most significant contributors, as strong balance sheets gave investors confidence that banks would be relatively resilient in the case of an economic downturn. Bonds issued by consumer cyclicals companies, particularly automakers, were also a source of strength, as consumer spending continued to grow despite slowing global vehicle sales and credit rating downgrades.
Floating-rate notes (“floaters”), which periodically reset their interest rate paid to investors, also contributed to the Fund’s return. In the latter part of the reporting period, the Fund increased its allocation to floaters to take advantage of attractive spreads, as the U.S. Treasury yield curve (a graphical representation of U.S. Treasury rates at different maturities) inverted.
From a credit quality perspective, all rating categories held by the Fund contributed to the Fund’s performance. Bonds rated Aa and A contributed the majority of the Fund’s return.
Portfolio Information
ALLOCATION BY INVESTMENT TYPE | ||||
Investment Type | | Percent of Total Investments | (a) | |
Corporate Bonds & Notes | 46.2 | % | ||
Commercial Paper | 24.7 | |||
Certificates of Deposit | 19.7 | |||
Repurchase Agreements | 7.4 | |||
Asset-Backed Securities | 2.0 |
ALLOCATION BY CREDIT QUALITY | ||||
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Aaa | 0.3 | % | ||
Aa | 17.6 | |||
A | 26.8 | |||
Baa | 6.7 | |||
P-1 | 27.2 | |||
P-2 | 16.6 | |||
Not Rated | 4.8 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 9 |
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recentmonth-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
10 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Asset-Backed Securities |
| |||||||
Adams Mill CLO Ltd.,Series 2014-1A, Class A2R, 3.10%, 07/15/26 (Call 01/15/20), | ||||||||
(3 mo. LIBOR US + 1.100%)(a)(b) | $ | 4,915 | $ | 4,908,989 | ||||
Ally Auto Receivables Trust | ||||||||
Series 2017-4, Class A3, 1.75%, 12/15/21 (Call 01/15/21) | 5,137 | 5,131,842 | ||||||
Series 2018-3, Class A2, 2.72%, 05/17/21 (Call 09/15/21) | 8,044 | 8,048,614 | ||||||
Series 2019-1, Class A2, 2.85%, 03/15/22 (Call 06/15/22) | 25,850 | 25,940,232 | ||||||
ALM VII Ltd.,Series 2012-7A, Class A1A2, 3.17%, 07/15/29 (Call 07/15/20), | ||||||||
(3 mo. LIBOR US + 1.170%)(a)(b) | 9,000 | 8,981,066 | ||||||
ALM XII Ltd., Class A1R, 2.89%, 04/16/27, | ||||||||
(3 mo. LIBOR US + 0.890%)(a)(b) | 3,090 | 3,086,064 | ||||||
ALM XVII Ltd.,Series 2015-17A, Class A1AR, 2.93%, 01/15/28 (Call 01/15/20), | ||||||||
(3 mo. LIBOR US + 0.930%)(a)(b) | 22,500 | 22,428,436 | ||||||
American Express Credit Account Master Trust, 2.67%, 10/17/22 | 3,875 | 3,887,548 | ||||||
AmeriCredit Automobile Receivables Trust | ||||||||
Series 2017-1, Class A3, 1.87%, 08/18/21 (Call 06/18/21) | 131 | 131,207 | ||||||
Series 2017-3, Class A3, 1.90%, 03/18/22 (Call 11/18/21) | 11,877 | 11,864,501 | ||||||
Series 2018-1, Class A2A, 2.71%, 07/19/21 (Call 05/18/22) | 1,503 | 1,504,228 | ||||||
Series 2018-3, Class A2A, 3.11%, 01/18/22 (Call 02/18/23) | 22,953 | 23,027,402 | ||||||
Series 2019-1, Class A2A, 2.93%, 06/20/22 (Call 04/18/23) | 26,330 | 26,434,686 | ||||||
Anchorage Capital CLO4-R Ltd.,Series 2014-4RA, Class A, 2.99%, 01/28/31 (Call 01/28/20), | ||||||||
(3 mo. LIBOR US + 1.050%)(a)(b) | 2,500 | 2,482,668 | ||||||
Anchorage Capital CLO 7 Ltd.,Series 2015-7A, Class AR, 2.96%, 10/15/27 (Call 01/15/20), | ||||||||
(3 mo. LIBOR US + 0.960%)(a)(b) | 10,740 | 10,714,328 | ||||||
Anchorage Capital CLO 8 Ltd.,Series 2016-8A, Class AR, 2.94%, 07/28/28 (Call 01/28/20), | ||||||||
(3 mo. LIBOR US + 1.000%)(a)(b) | 6,305 | 6,283,400 | ||||||
Arbor Realty Commercial Real Estate Notes Ltd.,Series 2017-FL1, Class A, 3.21%, 04/15/27 (Call 11/15/19), | ||||||||
(1 mo. LIBOR US + 1.300%)(a)(b) | 12,170 | 12,216,605 | ||||||
Ares XXIX CLO Ltd.,Series 2014-1A, Class A1R, 3.19%, 04/17/26 (Call 01/17/20), | ||||||||
(3 mo. LIBOR US + 1.190%)(a)(b) | 3,727 | 3,729,996 | ||||||
Atlas Senior Loan Fund III Ltd.,Series 2013-1A, Class AR, 2.95%, 11/17/27 (Call 11/17/19), | ||||||||
(3 mo. LIBOR US + 0.830%)(a)(b) | 15,411 | 15,345,818 | ||||||
Avery Point IV CLO Ltd.,Series 2014-1A, Class AR, 3.04%, 04/25/26 (Call 01/25/20), | ||||||||
(3 mo. LIBOR US + 1.100%)(a)(b) | 3,787 | 3,787,374 | ||||||
BA Credit Card Trust | ||||||||
Series 2017-A1, Class A1, 1.95%, 08/15/22 | 46,700 | 46,701,069 | ||||||
Series 2017-A2, Class A2, 1.84%, 01/17/23 | 10,000 | 9,999,039 | ||||||
Bain Capital Credit Clo Ltd.,Series 2016-2A, Class AR, 3.14%, 01/15/29 (Call 01/15/20), | ||||||||
(3 mo. LIBOR US + 1.140%)(a)(b) | 7,620 | 7,600,978 |
Security | Par (000) | Value | ||||||
BlueMountain CLO Ltd.,Series 2012-2A, Class AR2, 3.19%, 11/20/28 (Call 11/20/19), | ||||||||
(3 mo. LIBOR US + 1.050%)(a)(b) | $ | 11,310 | $ | 11,301,093 | ||||
BMW Floorplan Master Owner Trust,Series 2018-1, Class A2, 2.23%, 05/15/23, | ||||||||
(1 mo. LIBOR US + 0.320%)(a)(b) | 21,060 | 21,095,682 | ||||||
BMW Vehicle Owner Trust,Series 2016-A, Class A4, 1.37%, 12/27/22 (Call 05/25/20) | 8,335 | 8,313,185 | ||||||
Capital One Multi-Asset Execution Trust Class A6, 1.82%, 09/15/22 | 10,107 | 10,105,807 | ||||||
Series 2017-A1, Class A1, 2.00%, 01/17/23 | 45,848 | 45,866,335 | ||||||
Series 2017-A4, Class A4, 1.99%, 07/17/23 | 30,195 | 30,231,364 | ||||||
Carlyle Global Market Strategies CLO Ltd.,Series 2013-2A, Class AR, 2.89%, 01/18/29 (Call 01/18/20), | ||||||||
(3 mo. LIBOR US + 0.890%)(a)(b) | 6,210 | 6,208,888 | ||||||
CarMax Auto Owner Trust Class A2A, 3.02%, 07/15/22 (Call 10/15/22) | 20,166 | 20,267,283 | ||||||
Series 2016-1, Class A4, 1.88%, 06/15/21 (Call 04/15/20) | 13,559 | 13,551,021 | ||||||
Series 2016-2, Class A4, 1.68%, 09/15/21 (Call 06/15/20) | 12,349 | 12,330,959 | ||||||
Series 2018-2, Class A2, 2.73%, 08/16/21 (Call 04/15/22) | 3,649 | 3,655,538 | ||||||
Catamaran CLO Ltd.,Series 2015-1A, Class AR, 2.85%, 04/22/27 (Call 01/22/20), | ||||||||
(3 mo. LIBOR US + 0.900%)(a)(b) | 3,575 | 3,560,419 | ||||||
Cedar Funding II CLO Ltd.,Series 2013-1A, Class A1R, 3.33%, 06/09/30 (Call 12/09/19), | ||||||||
(3 mo. LIBOR US + 1.230%)(a)(b) | 8,000 | 7,985,546 | ||||||
Cedar Funding VI CLO Ltd.,Series 2016-6A, Class AR, 3.06%, 10/20/28 (Call 01/20/20), | ||||||||
(3 mo. LIBOR US + 1.090%)(a)(b) | 20,500 | 20,422,487 | ||||||
CIFC Funding Ltd. | ||||||||
Class A, 3.21%, 04/20/30, | ||||||||
(3 mo. LIBOR US + 1.240%)(a)(b) | 6,375 | 6,362,452 | ||||||
Series 2014-4RA, Class A1A, 3.13%, 10/17/30 (Call 10/17/20), (3 mo. LIBOR US + 1.130%)(a)(b) | 15,175 | 15,116,461 | ||||||
Series 2015-2A, Class AR, 2.78%, 04/15/27 (Call 01/15/20), | 14,884 | 14,857,885 | ||||||
Citibank Credit Card Issuance Trust,Series 2016-A1, Class A1, 1.75%, 11/19/21 | 23,370 | 23,365,952 | ||||||
CNH Equipment Trust | ||||||||
Class A2, 2.96%, 05/16/22 (Call 07/15/23) | 9,419 | 9,464,502 | ||||||
Series 2017-B, Class A3, 1.86%, 09/15/22 (Call 10/15/21) | 14,728 | 14,710,075 | ||||||
Discover Card Execution Note Trust, Class A, 2.19%, 12/15/23, | 20,000 | 20,009,694 | ||||||
Drive Auto Receivables Trust | ||||||||
Series 2019-1, Class A2A, 3.08%, 09/15/21 (Call 10/15/21) | 5,304 | 5,307,137 | ||||||
Series 2019-2, Class A3, 3.04%, 03/15/23 (Call 06/15/22) | 15,540 | 15,675,381 | ||||||
Series 2019-4, Class A3, 2.16%, 05/15/23 (Call 03/15/23) | 8,200 | 8,202,393 | ||||||
Dryden 43 Senior Loan Fund,Series 2016-43A, Class AR, 3.11%, 07/20/29 (Call 07/20/20), | ||||||||
(3 mo. LIBOR US + 1.140%)(a)(b) | 20,000 | 19,957,242 | ||||||
Dryden XXVI Senior Loan Fund,Series 2013-26A, Class AR, 2.90%, 04/15/29 (Call 01/15/20), | ||||||||
(3 mo. LIBOR US + 0.900%)(a)(b) | 16,350 | 16,288,218 |
SCHEDULE OF INVESTMENTS | 11 |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Eaton Vance CLO Ltd.,Series 2013-1A, Class A1RR, 3.16%, 01/15/28 (Call 07/15/20), | ||||||||
(3 mo. LIBOR US + 1.160%)(a)(b) | $ | 6,000 | $ | 5,994,089 | ||||
Enterprise Fleet Financing LLC | ||||||||
Series 2017-1, Class A2, 2.13%, 07/20/22 (Call 03/20/20)(a) | 495 | 495,321 | ||||||
Series 2017-2, Class A2, 1.97%, 01/20/23(a) | 5,057 | 5,053,853 | ||||||
Series 2017-3, Class A2, 2.13%, 05/22/23(a) | 3,387 | 3,388,300 | ||||||
Ford Credit Auto Owner Trust,Series 2016-C, Class A3, 1.22%, 03/15/21 (Call 08/15/20) | 1,355 | 1,353,364 | ||||||
Ford Credit Floorplan Master Owner Trust,Series 2019-1, Class A, 2.84%, 03/15/24 | 26,550 | 27,017,530 | ||||||
Ford Credit Floorplan Master Owner Trust A | ||||||||
Series 2013-2, Class A, 2.09%, 03/15/22(a) | 2,560 | 2,559,643 | ||||||
Series 2019-3, Class A2, 2.51%, 09/15/24, (1 mo. LIBOR US + 0.600%)(b) | 39,300 | 39,398,643 | ||||||
Galaxy XXIII CLO Ltd.,Series 2017-23, Class A, 3.22%, 04/24/29 (Call 01/24/20), | ||||||||
(3 mo. LIBOR US + 1.280%)(a)(b) | 14,580 | 14,540,144 | ||||||
GM Financial Consumer Automobile Receivables Trust, | ||||||||
Series 2018-4, Class A2, 2.93%, 11/16/21 (Call 09/16/22) | 10,455 | 10,481,382 | ||||||
GoldenTree Loan Opportunities IX Ltd.,Series 2014-9A, Class AR2, 3.04%, 10/29/29 (Call 10/29/20), | ||||||||
(3 mo. LIBOR US + 1.110%)(a)(b) | 16,680 | 16,627,146 | ||||||
Halcyon Loan Advisors Funding Ltd.,Series 2015-2A, Class AR, 3.02%, 07/25/27 (Call 01/25/20), | ||||||||
(3 mo. LIBOR US + 1.080%)(a)(b) | 14,137 | 14,125,194 | ||||||
Honda Auto Receivables Owner Trust 1.68%, 08/16/21 | 16,560 | 16,544,886 | ||||||
Series 2018-2, Class A4, 3.16%, 08/19/24 (Call 10/18/21) | 4,870 | 4,990,090 | ||||||
Series 2018-4, Class A2, 2.98%, 05/17/21 (Call 04/15/22) | 16,502 | 16,555,055 | ||||||
HPS Loan Management10-2016 Ltd., Class A1R, 3.11%, 01/20/28 (Call 10/20/20), | ||||||||
(3 mo. LIBOR US + 1.140%)(a)(b) | 16,850 | 16,816,241 | ||||||
John Deere Owner Trust,Series 2017-B, Class A3, 1.82%, 10/15/21 (Call 01/15/21) | 5,849 | 5,843,492 | ||||||
LCM XX LP, Series 20A, Class AR, 3.01%, 10/20/27 (Call 01/20/20), (3 mo. LIBOR US + 1.040%)(a)(b) | 13,750 | 13,737,807 | ||||||
LCM Xxiv Ltd., Series 24A, Class A, 3.28%, 03/20/30 (Call 01/20/20), (3 mo. LIBOR US + 1.310%)(a)(b) | 2,000 | 1,999,555 | ||||||
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, 3.04%, 05/15/28 (Call 05/15/20), | ||||||||
(1 mo. LIBOR US + 1.130%)(a)(b) | 9,450 | 9,444,870 | ||||||
Madison Park Funding X Ltd.,Series 2012-10A, Class AR2, 3.19%, 01/20/29 (Call 07/20/20), | ||||||||
(3 mo. LIBOR US + 1.220%)(a)(b) | 6,250 | 6,234,266 | ||||||
Madison Park Funding XIII Ltd.,Series 2014-13A, Class AR2, 2.92%, 04/19/30 (Call 01/19/20), | ||||||||
(3 mo. LIBOR US + 0.950%)(a)(b) | 4,000 | 3,990,950 | ||||||
Marathon CRE Ltd.,Series 2018-FL1, Class A, 3.06%, 06/15/28 (Call 06/15/20), | ||||||||
(1 mo. LIBOR US + 1.150%)(a)(b) | 20,640 | 20,648,093 | ||||||
Mercedes-Benz Auto Receivables Trust,Series 2016-1, Class A3, 1.26%, 02/16/21 (Call 07/15/20) | 795 | 794,367 |
Security | Par (000) | Value | ||||||
Mercedes-Benz Master Owner Trust | ||||||||
Series 2017-BA, Class A, 2.33%, 05/16/22, (1 mo. LIBOR US + 0.420%)(a)(b) | $ | 14,540 | $ | 14,553,782 | ||||
Series 2018-BA, Class A, 2.25%, 05/15/23, (1 mo. LIBOR US + 0.340%)(a)(b) | 21,820 | 21,834,262 | ||||||
Navient Private Education Loan Trust | ||||||||
Series 2014-CT, Class A, 2.62%, 09/16/24 (Call 06/15/21), | 352 | 351,805 | ||||||
Series 2017-A, Class A2B, 2.82%, 12/16/58 (Call 02/15/28), | 1,770 | 1,773,818 | ||||||
Series 2018-BA, Class A1, 2.27%, 12/15/59 (Call 01/15/28), | 5,918 | 5,918,364 | ||||||
Navient Private Education Refi Loan Trust | ||||||||
Series 2018-CA, Class A1, 3.01%, 06/16/42 (Call 06/15/26)(a) | 11,899 | 11,977,927 | ||||||
Series 2018-DA, Class A1, 2.22%, 12/15/59 (Call 02/15/29), | 6,119 | 6,105,630 | ||||||
Series 2019-A, Class A1, 3.03%, 01/15/43 (Call 09/15/27)(a) | 4,455 | 4,490,810 | ||||||
Series 2019-FA, Class A1, | 42,175 | 42,198,955 | ||||||
Navient Student Loan Trust,Series 2015-2, Class A2, 2.24%, 08/27/29 (Call 02/25/28), | ||||||||
(1 mo. LIBOR US + 0.420%)(b) | 56 | 55,844 | ||||||
Nissan Auto Receivables Owner Trust 1.18%, 01/15/21 (Call 09/15/20) | 865 | 863,815 | ||||||
1.75%, 10/15/21 (Call 07/15/21) | 8,341 | 8,332,018 | ||||||
2.82%, 01/18/22 (Call 03/15/23) | 27,781 | 27,903,400 | ||||||
Series 2016-B, Class A3, 1.32%, 01/15/21 (Call 09/15/20) | 2,118 | 2,116,774 | ||||||
Nissan Master Owner Trust Receivables | ||||||||
Series 2017-B, Class A, 2.34%, 04/18/22, (1 mo. LIBOR US + 0.430%)(b) | 22,513 | 22,530,905 | ||||||
Series 2017-C, Class A, 2.23%, 10/17/22, (1 mo. LIBOR US + 0.320%)(b) | 13,535 | 13,540,415 | ||||||
Series 2019-A, Class A, 2.47%, 02/15/24, (1 mo. LIBOR US + 0.560%)(b) | 23,950 | 24,038,876 | ||||||
NLY Commercial Mortgage Trust, 3.21%, 02/15/36 (Call 03/15/21), | 5,291 | 5,299,371 | ||||||
OCP CLO Ltd.,Series 2016-12A, Class A1R, 3.12%, 10/18/28 (Call 01/18/20), | ||||||||
(3 mo. LIBOR US + 1.120%)(a)(b) | 21,095 | 21,045,927 | ||||||
OHA Credit Partners IX Ltd.,Series 2013-9A, Class A1R, 2.98%, 10/20/25, (3 mo. LIBOR US + 1.010%)(a)(b) | 200 | 200,117 | ||||||
OneMain Direct Auto Receivables Trust,Series 2017-2A, Class A, 2.31%, 12/14/21 (Call 08/14/20)(a) | 6,348 | 6,345,603 | ||||||
OneMain Financial Issuance Trust,Series 2016-3A, Class A, 3.83%, 06/18/31 (Call 05/18/21)(a) | 1,700 | 1,750,535 | ||||||
OZLM Funding Ltd.,Series 2012-1A, Class A1R2, 3.18%, 07/22/29 (Call 01/22/20), | ||||||||
(3 mo. LIBOR US + 1.230%)(a)(b) | 1,000 | 996,862 | ||||||
OZLM VIII Ltd.,Series 2014-8A, Class A1RR, 3.17%, 10/17/29 (Call 10/17/20), | ||||||||
(3 mo. LIBOR US + 1.170%)(a)(b) | 2,500 | 2,487,853 | ||||||
OZLM XIV Ltd.,Series 2015-14A, Class A1AR, 3.46%, 01/15/29 (Call 01/15/20), | ||||||||
(3 mo. LIBOR US + 1.160%)(a)(b) | 10,035 | 10,027,213 | ||||||
Palmer Square Loan Funding Ltd. | ||||||||
Series 2018-4A, Class A1, 3.06%, 11/15/26 (Call 11/15/19), | 10,762 | 10,740,386 | ||||||
Series 2018-5A, Class A1, 2.82%, 01/20/27 (Call 01/20/20), | 28,899 | 28,760,950 |
12 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
PFS Financing Corp. | ||||||||
Series 2019-A, Class A1, 2.46%, 04/15/24, (1 mo. LIBOR US + 0.550%)(a)(b) | $ | 40,000 | $ | 40,044,544 | ||||
Series 2019-B, Class A, 2.47%, 09/15/23, (1 mo. LIBOR US + 0.550%)(a)(b) | 14,650 | 14,650,000 | ||||||
Regatta VI Funding Ltd.,Series 2016-1A, Class AR, 3.05%, 07/20/28 (Call 01/20/20), | ||||||||
(3 mo. LIBOR US + 1.080%)(a)(b) | 15,130 | 15,084,360 | ||||||
Santander Retail Auto Lease Trust,Series 2019-B, Class A2B, 2.21%, 04/20/22 (Call 10/20/22), | ||||||||
(1 mo. LIBOR US + 0.360%)(a)(b) | 14,350 | 14,341,699 | ||||||
SLM Private Credit Student Loan Trust | ||||||||
Series 2005-A, Class A3, 2.32%, 06/15/23 (Call 03/15/28), | 2,991 | 2,986,043 | ||||||
Series 2005-B, Class A4, 2.45%, 06/15/39 (Call 06/15/27), | 8,727 | 8,561,127 | ||||||
Series 2006-A, Class A5, 2.41%, 06/15/39 (Call 09/15/28), | 13,947 | 13,631,909 | ||||||
Series 2006-B, Class A5, 2.39%, 12/15/39 (Call 12/15/27), | 13,238 | 12,968,990 | ||||||
SLM Private Education Loan Trust,Series 2011-C, Class A2A, 5.17%, 10/17/44 (Call 06/15/20), | ||||||||
(1 mo. LIBOR US + 3.250%)(a)(b) | 155 | 155,340 | ||||||
SLM Student Loan Trust,Series 2011-2, Class A1, 2.42%, 11/25/27 (Call 10/25/31), | ||||||||
(1 mo. LIBOR US + 0.600%)(b) | 271 | 271,673 | ||||||
SMB Private Education Loan Trust | ||||||||
Series 2015-A, Class A2A, 2.49%, 06/15/27 (Call 06/15/27)(a) | 6,882 | 6,904,901 | ||||||
Series 2017-A, Class A2B, 2.82%, 09/15/34, | 24,389 | 24,447,192 | ||||||
Series 2018-A, Class A1, 2.27%, 03/16/26, (1 mo. LIBOR US + 0.350%)(a)(b) | 2,271 | 2,270,527 | ||||||
Series 2018-B, Class A1, 2.24%, 12/16/24, (1 mo. LIBOR US + 0.320%)(a)(b) | 1,596 | 1,595,349 | ||||||
Series 2018-C, Class A1, 2.22%, 09/15/25, (1 mo. LIBOR US + 0.300%)(a)(b) | 7,723 | 7,722,456 | ||||||
Series 2019-A, Class A1, 2.26%, 02/16/26, (1 mo. LIBOR US + 0.350%)(a)(b) | 11,919 | 11,917,796 | ||||||
SoFi Professional Loan Program LLC | ||||||||
Series 16-C, Class A1, 2.92%, 10/27/36 (Call 08/25/24), | 1,832 | 1,841,915 | ||||||
Series 2014-B, Class A1, 3.07%, 08/25/32 (Call 12/25/19), | 118 | 118,574 | ||||||
Series 2014-B, Class A2, 2.55%, 08/27/29 (Call 12/25/19)(a) | 588 | 587,759 | ||||||
Series 2015-A, Class A1, 3.02%, 03/25/33 (Call 05/25/20), | 300 | 300,887 | ||||||
Series 2015-B, Class A1, 2.87%, 04/25/35 (Call 12/25/21), | 1,621 | 1,632,006 | ||||||
Sound Point Clo XIV Ltd.,Series 2016-3A, Class AR, 3.08%, 01/23/29 (Call 04/23/20), | ||||||||
(3 mo. LIBOR US + 1.150%)(a)(b) | 7,255 | 7,228,104 | ||||||
Sound Point Clo XV Ltd.,Series 2017-1A, Class AR, 3.08%, 01/23/29 (Call 01/23/20), | ||||||||
(3 mo. LIBOR US + 1.150%)(a)(b) | 1,100 | 1,098,031 | ||||||
Symphony CLO XVIII Ltd.,Series 2016-18A, Class AR, 3.08%, 01/23/28, | 2,400 | 2,394,712 | ||||||
TCI-Symphony CLO Ltd.,Series 2016-1A, Class AR, 3.16%, 10/13/29, | 5,235 | 5,235,000 |
Security | Par (000) | Value | ||||||
TICP CLO I Ltd.,Series 2015-1A, Class AR, 2.77%, 07/20/27 (Call 01/20/20), | ||||||||
(3 mo. LIBOR US + 0.800%)(a)(b) | $ | 3,995 | $ | 3,974,433 | ||||
TICP CLO VI Ltd.,Series 2016-6A, Class AR, 3.20%, 01/15/29 (Call 04/15/20), | ||||||||
(3 mo. LIBOR US + 1.200%)(a)(b) | 6,380 | 6,375,923 | ||||||
Toyota Auto Receivables,Series 2016-C, Class A4, 1.32%, 11/15/21 (Call 05/15/20) | 8,347 | 8,330,341 | ||||||
Toyota Auto Receivables Owner Trust | ||||||||
Series 2017-B, Class A3, 1.76%, 07/15/21 (Call 03/15/21) | 3,766 | 3,763,722 | ||||||
Series 2019-A, Class A2A, 2.83%, 10/15/21 (Call 10/15/22) | 23,304 | 23,394,576 | ||||||
Treman Park CLO Ltd.,Series 2015-1A, Class ARR, 3.04%, 10/20/28 (Call 01/20/20), | ||||||||
(3 mo. LIBOR US + 1.070%)(a)(b) | 21,750 | 21,665,316 | ||||||
Venture XXIV CLO Ltd.,Series 2016-24A, Class AR, 3.15%, 10/20/28 (Call 04/20/20), | ||||||||
(3 mo. LIBOR US + 1.180%)(a)(b) | 2,065 | 2,063,561 | ||||||
Volvo Financial Equipment LLC,Series 2019-1A, Class A2, 2.90%, 11/15/21 (Call 01/15/23)(a) | 15,000 | 15,073,481 | ||||||
VOYA CLO,Series 2017-2A, Class A1, 3.21%, 06/07/30 (Call 01/15/20), (3 mo. LIBOR US + 1.210%)(a)(b) | 5,330 | 5,314,482 | ||||||
Westlake Automobile Receivables Trust,Series 2019-3A, Class A2, 2.15%, 02/15/23 (Call 11/15/22)(a) | 15,040 | 15,047,532 | ||||||
Wheels SPV 2 LLC,Series 2015-1A, Class A2, 1.88%, 04/20/26 (Call 10/20/20)(a) | 347 | 346,433 | ||||||
|
| |||||||
Total Asset-Backed Securities — 24.0% | 1,506,666,281 | |||||||
|
| |||||||
Certificates of Deposit | ||||||||
Barclays Bank PLC | 30,000 | 30,045,980 | ||||||
3.20%, 01/31/20 | 10,000 | 10,028,071 | ||||||
MUFG Bank Ltd., 2.44%, 01/25/21, | ||||||||
(3 mo. LIBOR US + 0.500%)(b) | 15,000 | 15,032,722 | ||||||
|
| |||||||
Total Certificates of Deposit — 0.9% | 55,106,773 | |||||||
|
| |||||||
Collaterized Mortgage Obligations | ||||||||
Mortgage-Backed Securities — 8.6% | ||||||||
280 Park Avenue Mortgage Trust, | ||||||||
(1 mo. LIBOR US + 0.880%)(a)(b) | 33,000 | 32,999,762 | ||||||
Americold LLC, Series 2010-ARTA, Class A1, 3.85%, 01/14/29(a) | 1,893 | 1,911,448 | ||||||
AOA Mortgage Trust, Series 2015-1177, Class A, 2.96%, 12/13/29(a) | 11,835 | 11,939,967 | ||||||
AREIT Trust, Series 2019-CRE3, Class A, 2.91%, 09/14/36, | 30,000 | 30,015,000 | ||||||
Aventura Mall Trust,Series 2013-AVM, Class A, 3.74%, 12/05/32(a)(b) | 4,650 | 4,699,776 | ||||||
BAMLL Commercial Mortgage Securities Trust, Series 2018-DSNY, Class A, 2.77%, 09/15/34, | ||||||||
(1 mo. LIBOR US + 0.850%)(a)(b) | 24,720 | 24,712,416 | ||||||
Bancorp Commercial Mortgage Trust | ||||||||
Series 2018-CRE4, Class A, 2.82%, 09/15/35, (1 mo. LIBOR US + 0.900%)(a)(b) | 6,353 | 6,351,030 |
SCHEDULE OF INVESTMENTS | 13 |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Mortgage-Backed Securities (continued) | ||||||||
Series 2019-CRE5, Class A, 2.91%, 03/15/36, | $ | 11,088 | $ | 11,087,744 | ||||
BBCMS Trust,Series 2019-CLP, Class A, 2.61%, 12/15/31, | 10,012 | 9,950,636 | ||||||
Bear Stearns Commercial Mortgage Securities Trust, | ||||||||
Series 2005-PW10, Class AJ, 5.59%, 12/11/40(b) | 5,185 | 5,286,790 | ||||||
BX Commercial Mortgage Trust | ||||||||
Class A, 2.58%, 03/15/37, (1 mo. LIBOR US + 0.671%)(a)(b) | 23,190 | 23,132,085 | ||||||
Class A, 2.66%, 11/15/35, (1 mo. LIBOR US + 0.750%)(a)(b) | 39,264 | 39,227,120 | ||||||
Series 2019-XL, Class A, 2.92%, 10/15/36, (1 mo. LIBOR US + 0.920%)(a)(b) | 20,979 | 21,005,327 | ||||||
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class A, 2.70%, 07/15/32, | ||||||||
(1 mo. LIBOR US + 0.790%)(a)(b) | 13,300 | 13,295,832 | ||||||
Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A11, 2.72%, 07/25/49, | ||||||||
(1 mo. LIBOR US + 0.900%)(a)(b) | 7,191 | 7,159,207 | ||||||
COMM Mortgage Trust, Series 2014-CR15, Class A2, 2.93%, 02/10/47 | 3,772 | 3,772,148 | ||||||
Commission Mortgage Trust,Series 2013-CR6, Class A3FL, 2.56%, 03/10/46, | ||||||||
(1 mo. LIBOR US + 0.630%)(a)(b) | 8,857 | 8,835,344 | ||||||
Credit Suisse Mortgage Capital Certificates, Series 2019-ICE4, Class A, 2.89%, 05/15/36, | ||||||||
(1 mo. LIBOR US + 0.980%)(a)(b) | 20,920 | 20,965,363 | ||||||
Four Times Square Trust Commercial Mortgage Pass-Through Certificates,Series 2006-4TS, Class A, 5.40%, 12/13/28(a) | 10,830 | 11,148,690 | ||||||
Gosforth Funding PLC,Series 2018-1A, Class A1, 2.58%, 08/25/60 (Call 08/25/23), | ||||||||
(3 mo. LIBOR US + 0.450%)(a)(b) | 8,230 | 8,216,093 | ||||||
GPMT Ltd.,Series 2018-FL1, Class A, 2.75%, 11/21/35, | ||||||||
(1 mo. LIBOR US + 0.900%)(a)(b) | 6,132 | 6,121,836 | ||||||
GS Mortgage Securities Corp. II, Series 2013-KING, Class A, 2.71%, 12/10/27(a) | 1,716 | 1,715,588 | ||||||
GS Mortgage Securities Corp. Trust | ||||||||
Series 2018-FBLU, Class A, 2.87%, 11/15/35, | 26,015 | 26,022,768 | ||||||
Series 2018-LUAU, Class A, 2.91%, 11/15/32, | 7,600 | 7,599,941 | ||||||
Series 2019-SOHO, Class A, 2.81%, 06/15/36, | 19,046 | 19,063,753 | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
Series 2019-BKWD, Class A, 2.89%, 09/15/29, | 1,911 | 1,915,111 | ||||||
KNDL Mortgage Trust, 2.72%, 05/15/36, | ||||||||
(1 mo. LIBOR US + 0.800%)(a)(b) | 8,533 | 8,533,066 | ||||||
Lanark Master Issuer PLC, 2.90%, 12/22/69, | ||||||||
(3 mo. LIBOR US + 0.770%)(a)(b) | 8,059 | 8,072,228 | ||||||
LMREC Inc., Series 2016-CRE2, Class A, 3.74%, 11/24/31, | 991 | 995,407 | ||||||
Madison Avenue Trust, Series 2013-650M, Class A, 3.84%, 10/12/32(a) | 7,500 | 7,575,053 | ||||||
Morgan Stanley Capital I Trust 2.87%, 03/15/34, | 8,247 | 8,246,986 | ||||||
Series 2014-CPT, Class A, 3.35%, 07/13/29(a) | 14,480 | 14,753,730 | ||||||
Series 2017-CLS, Class A, 2.61%, 11/15/34, | 34,512 | 34,490,309 |
Security | Par (000) | Value | ||||||
Mortgage-Backed Securities (continued) | ||||||||
Series 2018-BOP, Class A, 2.76%, 08/15/33, (1 mo. LIBOR US + 0.850%)(a)(b) | $ | 6,860 | $ | 6,842,779 | ||||
Series 2018-SUN, Class A, 2.81%, 07/15/35, (1 mo. LIBOR US + 0.900%)(a)(b) | 19,045 | 19,009,214 | ||||||
Natixis Commercial Mortgage Securities Trust, Series 2018-RIVA, Class A, 2.66%, 02/15/33, | ||||||||
(1 mo. LIBOR US + 0.750%)(a)(b) | 7,650 | 7,616,498 | ||||||
Rosslyn Portfolio Trust, Series 2017-ROSS, Class A, 2.86%, 06/15/33, | 3,390 | 3,389,995 | ||||||
VNDO Mortgage Trust, Series 2013-PENN, Class A, 3.81%, 12/13/29(a) | 10,200 | 10,333,193 | ||||||
Wells Fargo Commercial Mortgage Trust,Series 2017-SMP, Class A, 2.67%, 12/15/34, | ||||||||
(1 mo. LIBOR US + 0.750%)(a)(b) | 17,280 | 17,239,554 | ||||||
WFRBS Commercial Mortgage Trust | ||||||||
Series 2012-C6, Class AS, 3.84%, 04/15/45 | 12,986 | 13,413,965 | ||||||
Series 2012-C8, Class AFL, 2.88%, 08/15/45, (1 mo. LIBOR US + 1.000%)(a)(b) | 19,450 | 19,521,036 | ||||||
|
| |||||||
Total Collaterized Mortgage Obligations — 8.6% |
| 538,183,788 | ||||||
|
| |||||||
Commercial Paper | ||||||||
Ford Motor Credit Co. LLC 2.72%, 03/24/20(d) | 23,130 | 22,879,765 | ||||||
3.15%, 09/25/20(d) | 20,000 | 19,438,817 | ||||||
VW Credit Inc. 2.03%, 12/04/19(d) | 18,500 | 18,464,531 | ||||||
2.05%, 11/06/19(d) | 20,500 | 20,493,003 | ||||||
Walgreens Boots Alliance Inc., 2.04%, 11/04/19(d) | 20,900 | 20,895,256 | ||||||
|
| |||||||
Total Commercial Paper — 1.6% | 102,171,372 | |||||||
|
| |||||||
Corporate Bonds & Notes | ||||||||
Advertising — 0.1% | ||||||||
Interpublic Group of Companies Inc. (The), 3.50%, 10/01/20 | 4,465 | 4,523,077 | ||||||
|
| |||||||
Aerospace & Defense — 1.7% | ||||||||
Lockheed Martin Corp., 4.25%, 11/15/19 | 16,004 | 16,015,050 | ||||||
Northrop Grumman Corp., 2.08%, 10/15/20 | 15,000 | 15,020,045 | ||||||
Rolls-Royce PLC, 2.38%, 10/14/20 | 30,000 | 30,105,342 | ||||||
United Technologies Corp. | 15,000 | 15,005,374 | ||||||
2.82%, 08/16/21 (Call 11/18/19), | 21,865 | 21,869,220 | ||||||
4.50%, 04/15/20 | 10,000 | 10,119,323 | ||||||
|
| |||||||
108,134,354 | ||||||||
Agriculture — 1.3% | ||||||||
BAT Capital Corp. | 15,000 | 15,143,526 | ||||||
2.77%, 08/14/20, (3 mo. LIBOR US + 0.590%)(b) | 24,000 | 24,048,000 | ||||||
3.04%, 08/15/22 (Call 07/15/22), | 10,000 | 10,049,647 | ||||||
BAT International Finance PLC, | 9,625 | 9,668,777 | ||||||
Imperial Brands Finance PLC, 2.95%, 07/21/20(a) | 15,000 | 15,068,276 | ||||||
Reynolds American Inc., 6.88%, 05/01/20 | 10,000 | 10,226,265 | ||||||
|
| |||||||
84,204,491 |
14 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Auto Manufacturers — 5.0% | ||||||||
American Honda Finance Corp., 2.38%, 06/16/20, | ||||||||
(3 mo. LIBOR US + 0.260%)(b) | $ | 10,000 | $ | 10,013,716 | ||||
BMW U.S. Capital LLC 2.42%, 04/06/20, | 4,415 | 4,420,317 | ||||||
3.25%, 08/14/20(a) | 13,665 | 13,821,473 | ||||||
Daimler Finance North America LLC | 5,000 | 4,999,155 | ||||||
2.82%, 05/05/20, | 15,500 | 15,516,104 | ||||||
3.10%, 05/04/20(a) | 20,848 | 20,957,140 | ||||||
Ford Motor Credit Co. LLC | 15,000 | 15,000,000 | ||||||
2.68%, 01/09/20 | 10,000 | 10,003,767 | ||||||
3.06%, 09/24/20, | 15,000 | 14,990,719 | ||||||
3.16%, 08/04/20 | 58,995 | 59,274,400 | ||||||
8.13%, 01/15/20 | 10,000 | 10,107,092 | ||||||
General Motors Financial Co. Inc., 3.20%, 07/13/20 (Call 06/13/20) | 50,000 | 50,312,569 | ||||||
Hyundai Capital America | 12,134 | 12,153,825 | ||||||
2.89%, 04/03/20, | 6,890 | 6,904,469 | ||||||
3.15%, 09/18/20, | 3,000 | 3,011,734 | ||||||
Nissan Motor Acceptance Corp. | 18,968 | 18,975,430 | ||||||
2.58%, 01/13/20, | 15,000 | 15,011,700 | ||||||
Volkswagen Group of America Finance LLC | 22,090 | 22,125,964 | ||||||
2.70%, 09/26/22(a) | 2,145 | 2,164,897 | ||||||
|
| |||||||
309,764,471 | ||||||||
Banks — 22.4% | ||||||||
Australia & New Zealand Banking Group Ltd. | 19,745 | 19,804,664 | ||||||
2.76%, 11/09/22, | 2,000 | 2,006,113 | ||||||
Australia & New Zealand Banking Group Ltd./New York NY, 2.70%, 11/16/20 | 15,000 | 15,124,136 | ||||||
Banco Santander SA, 3.12%, 04/12/23, | ||||||||
(3 mo. LIBOR US + 1.120%)(b)(e) | 10,000 | 10,028,777 | ||||||
Bank of America Corp. | 20,000 | 20,047,105 | ||||||
2.37%, 07/21/21 (Call 07/21/20)(e)(f) | 1,600 | 1,603,775 | ||||||
2.63%, 07/21/21 (Call 07/21/20), | 25,500 | 25,576,908 | ||||||
2.75%, 10/01/21 (Call 10/01/20), | ||||||||
(3 mo. LIBOR US + 0.650%)(b) | 7,500 | 7,526,390 | ||||||
2.76%, 06/25/22 (Call 06/25/21), | ||||||||
(3 mo. LIBOR US + 0.650%)(b) | 10,000 | 10,048,632 | ||||||
2.94%, 04/24/23 (Call 04/24/22), | ||||||||
(3 mo. LIBOR US + 1.000%)(b) | 27,500 | 27,782,975 | ||||||
3.13%, 01/20/23 (Call 01/20/22), | ||||||||
(3 mo. LIBOR US + 1.160%)(b) | 25,000 | 25,346,997 | ||||||
Bank of Montreal, 2.92%, 08/27/21, | ||||||||
(3 mo. LIBOR US + 0.790%)(b)(e) | 7,000 | 7,076,300 | ||||||
Bank of Nova Scotia (The), 2.78%, 09/19/22, | ||||||||
(3 mo. LIBOR US + 0.620%)(b)(e) | 10,000 | 10,054,353 | ||||||
Banque Federative du Credit Mutuel SA | 10,000 | 10,016,949 | ||||||
2.46%, 07/20/20, | 3,215 | 3,223,423 | ||||||
Barclays PLC | 35,085 | 35,086,990 | ||||||
2.88%, 06/08/20 | 22,000 | 22,062,920 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
BB&T Corp., 2.69%, 06/15/20, | ||||||||
(3 mo. LIBOR US + 0.570%)(b)(e) | $ | 9,403 | $ | 9,432,243 | ||||
BNP Paribas SA, 2.38%, 05/21/20 | 15,000 | 15,039,596 | ||||||
Capital One N.A., 3.09%, 01/30/23 (Call 01/30/22), | ||||||||
(3 mo. LIBOR US + 1.150%)(b)(e) | 8,000 | 8,068,070 | ||||||
Citibank N.A., 2.63%, 06/12/20, | ||||||||
(3 mo. LIBOR US + 0.500%)(b) | 7,060 | 7,080,297 | ||||||
Citigroup Inc. | 10,000 | 10,005,100 | ||||||
2.63%, 10/27/22 (Call 09/27/22), | ||||||||
(3 mo. LIBOR US + 0.690%)(b)(e) | 10,000 | 10,038,649 | ||||||
2.65%, 10/26/20 | 25,000 | 25,174,123 | ||||||
2.80%, 01/10/20 (Call 12/10/19), | ||||||||
(3 mo. LIBOR US + 0.790%)(b) | 8,286 | 8,293,002 | ||||||
Citizens Bank N.A./Providence RI | 8,710 | 8,731,077 | ||||||
2.90%, 02/14/22 (Call 11/14/21), | ||||||||
(3 mo. LIBOR US + 0.720%)(b)(e) | 30,000 | 30,102,421 | ||||||
Commonwealth Bank of Australia/New York NY | 15,000 | 15,020,163 | ||||||
2.40%, 11/02/20 | 20,000 | 20,106,109 | ||||||
Cooperatieve Rabobank UA, 2.97%, 09/26/23, | ||||||||
(3 mo. LIBOR US + 0.860%)(a)(b) | 10,000 | 10,037,033 | ||||||
Credit Suisse AG/New York NY, 4.38%, 08/05/20 | 16,932 | 17,252,662 | ||||||
Credit Suisse Group Funding Guernsey Ltd., 2.75%, 03/26/20 | 25,410 | 25,490,150 | ||||||
Danske Bank A/S 2.65%, 03/02/20, | 2,500 | 2,500,393 | ||||||
2.75%, 09/17/20(a)(e) | 20,000 | 20,120,850 | ||||||
Deutsche Bank AG/New York NY | 5,000 | 4,974,500 | ||||||
4.25%, 02/04/21 | 9,905 | 10,099,589 | ||||||
Discover Bank, 3.10%, 06/04/20 (Call 05/04/20) | 20,000 | 20,112,791 | ||||||
Federation des Caisses Desjardins du Quebec, 2.25%, 10/30/20(a)(e) | 15,000 | 15,065,464 | ||||||
Fifth Third Bancorp., 2.88%, 07/27/20 (Call 06/27/20) | 10,000 | 10,060,794 | ||||||
Fifth Third Bank/Cincinnati OH, 2.19%, 10/30/20 (Call 09/30/20), | 10,000 | 10,008,900 | ||||||
Goldman Sachs Group Inc. (The) | ||||||||
(3 mo. LIBOR US + 0.780%)(b)(e) | 4,000 | 4,019,280 | ||||||
2.94%, 07/24/23 (Call 07/24/22), | ||||||||
(3 mo. LIBOR US + 1.000%)(b)(e) | 5,000 | 5,033,705 | ||||||
3.05%, 04/26/22 (Call 04/26/21), | ||||||||
(3 mo. LIBOR US + 1.110%)(b) | 25,000 | 25,257,900 | ||||||
3.18%, 06/05/23 (Call 06/05/22), | ||||||||
(3 mo. LIBOR US + 1.050%)(b) | 15,000 | 15,132,755 | ||||||
3.30%, 04/23/21 (Call 03/23/21), | ||||||||
(3 mo. LIBOR US + 1.360%)(b) | 7,000 | 7,094,995 | ||||||
3.32%, 09/15/20 (Call 08/15/20), | ||||||||
(3 mo. LIBOR US + 1.200%)(b)(e) | 1,750 | 1,763,567 | ||||||
3.72%, 11/29/23, | 15,000 | 15,490,564 | ||||||
3.90%, 02/25/21, | 10,000 | 10,189,666 | ||||||
HSBC Bank PLC, 4.13%, 08/12/20(a) | 10,000 | 10,174,547 | ||||||
HSBC Holdings PLC | ||||||||
(3 mo. LIBOR US + 0.600%)(b) | 24,695 | 24,724,140 | ||||||
3.79%, 05/25/21, | 10,000 | 10,184,190 | ||||||
4.34%, 03/08/21, | 6,815 | 6,976,838 | ||||||
HSBC USA Inc., 2.35%, 03/05/20 | 15,000 | 15,015,667 |
SCHEDULE OF INVESTMENTS | 15 |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Huntington National Bank (The), 2.64%, 03/10/20, | ||||||||
(3 mo. LIBOR US + 0.510%)(b)(e) | $ | 10,000 | $ | 10,018,710 | ||||
JPMorgan Chase & Co. | ||||||||
(3 mo. LIBOR US + 0.610%)(b) | 12,500 | 12,541,375 | ||||||
2.82%, 06/01/21 (Call 06/01/20), | ||||||||
(3 mo. LIBOR US + 0.680%)(b) | 19,985 | 20,038,480 | ||||||
2.84%, 04/25/23 (Call 04/25/22), | ||||||||
(3 mo. LIBOR US + 0.900%)(b)(e) | 10,000 | 10,066,742 | ||||||
3.00%, 01/15/23 (Call 01/15/22), | ||||||||
(3 mo. LIBOR US + 1.000%)(b)(e) | 15,000 | 15,165,687 | ||||||
3.17%, 10/24/23 (Call 10/24/22), | ||||||||
(3 mo. LIBOR US + 1.230%)(b) | 15,000 | 15,261,981 | ||||||
4.25%, 10/15/20 | 10,000 | 10,217,300 | ||||||
JPMorgan Chase Bank N.A. | ||||||||
(3 mo. LIBOR US + 0.370%)(b)(e) | 10,000 | 10,006,157 | ||||||
2.60%, 02/01/21 (Call 02/01/20)(f) | 15,000 | 15,020,158 | ||||||
3.09%, 04/26/21 (Call 04/26/20)(f) | 32,400 | 32,561,490 | ||||||
Lloyds Bank PLC | 20,000 | 20,120,460 | ||||||
6.38%, 01/21/21 | 9,000 | 9,472,398 | ||||||
Mitsubishi UFJ Financial Group Inc., 2.59%, 07/26/21, | ||||||||
(3 mo. LIBOR US + 0.650%)(b)(e) | 10,000 | 10,035,607 | ||||||
Mizuho Financial Group Inc. | 3,000 | 3,003,808 | ||||||
2.98%, 09/13/23 (Call 09/13/22), | ||||||||
(3 mo. LIBOR US + 0.850%)(b)(e) | 25,000 | 25,091,951 | ||||||
3.27%, 09/13/21, | 20,000 | 20,234,458 | ||||||
Morgan Stanley | 15,000 | 15,170,248 | ||||||
2.80%, 06/16/20 | 10,000 | 10,048,722 | ||||||
3.08%, 01/27/20, | 3,000 | 3,006,835 | ||||||
3.15%, 01/20/22 (Call 01/20/21), | ||||||||
(3 mo. LIBOR US + 1.180%)(b) | 15,000 | 15,155,010 | ||||||
3.34%, 10/24/23 (Call 10/24/22), | ||||||||
(3 mo. LIBOR US + 1.400%)(b) | 40,000 | 40,807,350 | ||||||
National Australia Bank Ltd., 2.66%, 05/22/20, | ||||||||
(3 mo. LIBOR US + 0.510%)(a)(b) | 10,000 | 10,027,300 | ||||||
Nordea Bank Abp, 2.59%, 05/29/20, | ||||||||
(3 mo. LIBOR US + 0.470%)(a)(b)(e) | 15,000 | 15,034,743 | ||||||
Royal Bank of Canada, 2.52%, 03/02/20, | ||||||||
(3 mo. LIBOR US + 0.380%)(b)(e) | 5,000 | 5,004,905 | ||||||
Santander UK Group Holdings PLC | 33,000 | 33,140,448 | ||||||
3.13%, 01/08/21 | 10,000 | 10,094,436 | ||||||
Skandinaviska Enskilda Banken AB | 10,000 | 10,027,600 | ||||||
2.63%, 11/17/20(a) | 20,000 | 20,108,920 | ||||||
Standard Chartered PLC, | 20,000 | 20,176,616 | ||||||
Sumitomo Mitsui Banking Corp., 2.45%, 01/16/20 | 10,000 | 10,011,597 | ||||||
SunTrust Bank/Atlanta GA, 2.44%, 10/26/21 (Call 10/26/20), | 32,020 | 32,069,921 | ||||||
Svenska Handelsbanken AB | 5,000 | 5,010,246 | ||||||
2.60%, 05/24/21, | 12,500 | 12,551,481 | ||||||
Synchrony Bank, 2.73%, 03/30/20, | ||||||||
(3 mo. LIBOR US + 0.625%)(b) | 30,000 | 30,025,812 | ||||||
U.S. Bank N.A./Cincinnati OH, 2.05%, 10/23/20 (Call 09/23/20)(e) | 10,000 | 10,023,040 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
UBS AG/London | $ | 15,000 | $ | 15,059,700 | ||||
2.62%, 12/01/20 (Call 11/01/20), | ||||||||
(3 mo. LIBOR US + 0.480%)(a)(b)(e) | 5,000 | 5,013,610 | ||||||
2.68%, 06/08/20 (Call 05/08/20), | ||||||||
(3 mo. LIBOR US + 0.580%)(a)(b) | 5,300 | 5,313,611 | ||||||
UBS Group Funding Switzerland AG, 3.37%, 05/23/23 (Call 05/23/22), | 20,000 | 20,264,800 | ||||||
Wells Fargo & Co. | 15,000 | 15,112,453 | ||||||
2.83%, 07/22/20, | 5,000 | 5,026,543 | ||||||
3.47%, 03/04/21, | 30,000 | 30,414,600 | ||||||
Wells Fargo Bank N.A. | ||||||||
(3 mo. LIBOR US + 0.500%)(b) | 15,000 | 15,023,582 | ||||||
2.46%, 10/22/21 (Call 09/21/21), | ||||||||
(3 mo. LIBOR US + 0.510%)(b) | 30,000 | 30,109,770 | ||||||
|
| |||||||
1,403,979,858 | ||||||||
Biotechnology — 0.3% | ||||||||
Amgen Inc., 2.63%, 05/11/20, | ||||||||
(3 mo. LIBOR US + 0.450%)(b)(e) | 8,100 | 8,113,601 | ||||||
Gilead Sciences Inc., 2.55%, 09/01/20 | 10,000 | 10,054,926 | ||||||
|
| |||||||
18,168,527 | ||||||||
Chemicals — 1.0% | ||||||||
DuPont de Nemours Inc. | 47,500 | 47,717,682 | ||||||
3.77%, 11/15/20 | 5,000 | 5,091,079 | ||||||
PPG Industries Inc., 2.30%, 11/15/19 | 10,868 | 10,869,000 | ||||||
|
| |||||||
63,677,761 | ||||||||
Computers — 0.6% | ||||||||
Hewlett Packard Enterprise Co. | ||||||||
(3 mo. LIBOR US + 0.720%)(b) | 20,000 | 20,000,151 | ||||||
3.60%, 10/15/20 (Call 09/15/20)(g) | 10,000 | 10,134,232 | ||||||
IBM Credit LLC, 2.59%, 11/30/20, | ||||||||
(3 mo. LIBOR US + 0.470%)(b) | 7,250 | 7,280,640 | ||||||
|
| |||||||
37,415,023 | ||||||||
Diversified Financial Services — 3.7% | ||||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | 35,000 | 35,469,021 | ||||||
4.63%, 10/30/20 | 20,000 | 20,495,554 | ||||||
AIG Global Funding, 2.57%, 07/02/20, | ||||||||
(3 mo. LIBOR US + 0.480%)(a)(b)(e) | 3,695 | 3,706,373 | ||||||
American Express Co. | ||||||||
(3 mo. LIBOR US + 0.330%)(b)(e) | 7,750 | 7,763,020 | ||||||
2.78%, 02/27/23 (Call 01/27/23), | ||||||||
(3 mo. LIBOR US + 0.650%)(b) | 4,000 | 4,014,647 | ||||||
2.89%, 11/05/21 (Call 10/05/21), | ||||||||
(3 mo. LIBOR US + 0.600%)(b)(e) | 10,000 | 10,052,900 | ||||||
American Express Credit Corp., 2.57%, 03/03/20 (Call 02/03/20), | 10,000 | 10,011,678 | ||||||
Capital One Financial Corp. | ||||||||
(3 mo. LIBOR US + 0.450%)(b)(e) | 5,000 | 5,008,968 | ||||||
3.05%, 03/09/22 (Call 02/09/22), | ||||||||
(3 mo. LIBOR US + 0.950%)(b) | 24,635 | 24,833,010 | ||||||
3.45%, 04/30/21 (Call 03/30/21) | 10,000 | 10,206,993 |
16 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Diversified Financial Services (continued) | ||||||||
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20 | $ | 40,000 | $ | 39,975,022 | ||||
Horsepower Finance Ltd., 2.15%, 12/02/19(h) | 10,000 | 9,997,300 | ||||||
Nomura Holdings Inc., 6.70%, 03/04/20 | 31,841 | 32,331,744 | ||||||
Synchrony Financial, 2.70%, 02/03/20 (Call 01/03/20) | 17,695 | 17,710,095 | ||||||
|
| |||||||
231,576,325 | ||||||||
Electric — 1.0% | ||||||||
Duke Energy Florida LLC, 1.85%, 01/15/20 | 8,000 | 8,000,043 | ||||||
Duke Energy Progress LLC, 2.28%, 09/08/20, | ||||||||
(3 mo. LIBOR US + 0.180%)(b) | 9,835 | 9,845,170 | ||||||
Exelon Generation Co. LLC, 2.95%, 01/15/20 (Call 12/15/19) | 30,000 | 30,017,950 | ||||||
Florida Power & Light Co., 2.64%, 05/06/22 (Call 11/12/19), | 8,645 | 8,645,432 | ||||||
Sempra Energy, 2.50%, 01/15/21 (Call 12/02/19), | ||||||||
(3 mo. LIBOR US + 0.500%)(b) | 5,065 | 5,061,321 | ||||||
|
| |||||||
61,569,916 | ||||||||
Electronics — 0.2% | ||||||||
Tyco Electronics Group SA, 2.58%, 06/05/20, | ||||||||
(3 mo. LIBOR US + 0.450%)(b) | 15,000 | 15,010,395 | ||||||
|
| |||||||
Food — 1.4% | ||||||||
Campbell Soup Co., 2.75%, 03/15/21, | ||||||||
(3 mo. LIBOR US + 0.630%)(b) | 15,000 | 15,032,683 | ||||||
Conagra Brands Inc. | 7,000 | 7,010,265 | ||||||
2.70%, 10/22/20 (Call 11/12/19), | ||||||||
(3 mo. LIBOR US + 0.750%)(b) | 9,945 | 9,945,796 | ||||||
General Mills Inc., 2.54%, 04/16/21, | ||||||||
(3 mo. LIBOR US + 0.540%)(b) | 26,636 | 26,708,184 | ||||||
Kraft Heinz Foods Co. | 4,010 | 4,006,119 | ||||||
3.00%, 08/10/22, | 5,000 | 5,005,358 | ||||||
Tyson Foods Inc. | 14,160 | 14,174,525 | ||||||
2.68%, 06/02/20, | 5,475 | 5,484,742 | ||||||
|
| |||||||
87,367,672 | ||||||||
Health Care - Products — 0.9% | ||||||||
Becton Dickinson and Co. | 25,000 | 25,064,554 | ||||||
2.68%, 12/15/19 | 1,332 | 1,332,412 | ||||||
2.98%, 12/29/20 (Call 12/02/19), | ||||||||
(3 mo. LIBOR US + 0.875%)(b) | 21,378 | 21,388,262 | ||||||
Medtronic Inc., 2.92%, 03/15/20, | ||||||||
(3 mo. LIBOR US + 0.800%)(b) | 5,312 | 5,326,925 | ||||||
|
| |||||||
53,112,153 | ||||||||
Health Care - Services — 0.2% | ||||||||
UnitedHealth Group Inc., 2.70%, 07/15/20 | 10,000 | 10,060,847 | ||||||
|
| |||||||
Holding Companies - Diversified — 0.3% | ||||||||
FS KKR Capital Corp., 4.25%, 01/15/20 (Call 12/15/19) | 18,449 | 18,478,143 | ||||||
|
| |||||||
Insurance — 0.7% | ||||||||
Allstate Corp. (The), 2.53%, 03/29/21, | ||||||||
(3 mo. LIBOR US + 0.430%)(b) | 5,710 | 5,723,533 | ||||||
American International Group Inc., 3.38%, 08/15/20 | 2,997 | 3,030,903 | ||||||
Hartford Financial Services Group Inc. (The), 5.50%, 03/30/20 | 19,058 | 19,327,065 |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
Marsh & McLennan Companies Inc., 3.30%, 12/29/21 (Call 12/29/19), | $ | 13,380 | $ | 13,396,503 | ||||
|
| |||||||
41,478,004 | ||||||||
Lodging — 0.2% | ||||||||
Marriott International Inc./MD, Series Y, 2.74%, 12/01/20, | ||||||||
(3 mo. LIBOR US + 0.600%)(b)(e) | 10,000 | 10,025,555 | ||||||
|
| |||||||
Machinery — 0.6% | ||||||||
Caterpillar Financial Services Corp., 2.67%, 05/15/23, | ||||||||
(3 mo. LIBOR US + 0.510%)(b)(e) | 10,000 | 10,022,999 | ||||||
John Deere Capital Corp. | 6,000 | 6,007,800 | ||||||
2.45%, 06/22/20, | 6,000 | 6,010,681 | ||||||
2.50%, 06/07/21, | 6,480 | 6,502,265 | ||||||
Roper Technologies Inc., 3.00%, 12/15/20 (Call 11/15/20) | 8,500 | 8,589,029 | ||||||
|
| |||||||
37,132,774 | ||||||||
Manufacturing — 0.2% | ||||||||
Siemens Financieringsmaatschappij NV | 10,000 | 10,021,400 | ||||||
2.46%, 03/16/20, | 2,000 | 2,003,240 | ||||||
|
| |||||||
12,024,640 | ||||||||
Media — 2.2% | ||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital, 3.58%, 07/23/20 (Call 06/23/20) | 96,750 | 97,576,073 | ||||||
Comcast Corp., 2.54%, 10/01/21, | ||||||||
(3 mo. LIBOR US + 0.440%)(b) | 42,930 | 43,158,817 | ||||||
|
| |||||||
140,734,890 | ||||||||
Oil & Gas — 1.5% | ||||||||
Encana Corp., 3.90%, 11/15/21 (Call 08/15/21) | 15,407 | 15,813,411 | ||||||
Newfield Exploration Co., 5.75%, 01/30/22 | 20,000 | 21,356,446 | ||||||
Occidental Petroleum Corp., 3.64%, 08/15/22 (Call 08/15/20), | 53,070 | 53,398,272 | ||||||
Phillips 66, 2.75%, 04/15/20 (Call 12/02/19), | ||||||||
(3 mo. LIBOR US + 0.750%)(a)(b) | 5,625 | 5,626,955 | ||||||
|
| |||||||
96,195,084 | ||||||||
Packaging & Containers — 0.2% | ||||||||
Packaging Corp. of America, 2.45%, 12/15/20 | 10,405 | 10,447,246 | ||||||
|
| |||||||
Pharmaceuticals — 5.4% | ||||||||
AbbVie Inc., 2.50%, 05/14/20 (Call 04/14/20) | 62,500 | 62,673,483 | ||||||
Allergan Funding SCS | 94,829 | 95,062,881 | ||||||
3.39%, 03/12/20, | 20,505 | 20,570,418 | ||||||
3.45%, 03/15/22 (Call 01/15/22) | 10,000 | 10,246,521 | ||||||
Allergan Inc./U.S., 3.38%, 09/15/20 | 15,732 | 15,901,961 | ||||||
Cigna Corp., 3.20%, 09/17/20 | 30,000 | 30,310,823 | ||||||
CVS Health Corp. | 531 | 531,800 | ||||||
2.80%, 07/20/20 (Call 06/20/20) | 86,485 | 86,896,078 | ||||||
2.82%, 03/09/21, | 10,000 | 10,055,200 | ||||||
Express Scripts Holding Co., 2.60%, 11/30/20 | 8,200 | 8,253,908 | ||||||
|
| |||||||
340,503,073 | ||||||||
Pipelines — 3.6% | ||||||||
Enbridge Inc., 2.41%, 01/10/20, | ||||||||
(3 mo. LIBOR US + 0.400%)(b) | 5,230 | 5,232,824 | ||||||
Energy Transfer Operating LP | 37,445 | 37,992,462 | ||||||
7.50%, 10/15/20 | 3,500 | 3,672,401 |
SCHEDULE OF INVESTMENTS | 17 |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par | Value | ||||||
Pipelines (continued) | ||||||||
Enterprise Products Operating LLC, 5.20%, 09/01/20 | $ | 10,000 | $ | 10,271,624 | ||||
Kinder Morgan Energy Partners LP, 6.85%, 02/15/20 | 15,830 | 16,036,713 | ||||||
Kinder Morgan Inc./DE, 5.00%, 02/15/21 | 10,000 | 10,330,015 | ||||||
MPLX LP | ||||||||
3.00%, 09/09/21 (Call 09/09/20), | 6,825 | 6,852,426 | ||||||
6.25%, 10/15/22 (Call 11/15/19)(a) | 2,000 | 2,036,014 | ||||||
Plains All American Pipeline LP/PAA Finance Corp., 5.00%, 02/01/21 (Call 11/01/20) | 16,130 | 16,562,315 | ||||||
Spectra Energy Partners LP, 2.83%, 06/05/20, | ||||||||
(3 mo. LIBOR US + 0.700%)(b)(e) | 32,000 | 32,061,177 | ||||||
TransCanada PipeLines Ltd. 2.13%, 11/15/19 | 37,540 | 37,539,566 | ||||||
3.80%, 10/01/20 | 5,127 | 5,211,109 | ||||||
Williams Companies Inc. (The), 5.25%, 03/15/20 | 43,300 | 43,780,152 | ||||||
|
| |||||||
227,578,798 | ||||||||
Retail — 0.1% | ||||||||
Walgreens Boots Alliance Inc., 2.70%, 11/18/19 | 3,058 | 3,058,649 | ||||||
|
| |||||||
Semiconductors — 2.1% | ||||||||
Broadcom Corp./Broadcom Cayman Finance Ltd. 2.20%, 01/15/21 | 10,000 | 10,000,217 | ||||||
2.38%, 01/15/20 | 60,845 | 60,864,470 | ||||||
Broadcom Inc., 3.13%, 04/15/21(a) | 30,800 | 31,161,885 | ||||||
Intel Corp., 2.26%, 05/11/20, | ||||||||
(3 mo. LIBOR US + 0.080%)(b) | 13,700 | 13,703,683 | ||||||
Lam Research Corp., 2.75%, 03/15/20 | 7,555 | 7,569,885 | ||||||
QUALCOMM Inc., 2.25%, 05/20/20 | 10,000 | 10,008,200 | ||||||
|
| |||||||
133,308,340 | ||||||||
Software — 0.3% | ||||||||
Fidelity National Information Services Inc., | 10,000 | 10,139,277 | ||||||
Fiserv Inc., 2.70%, 06/01/20 (Call 05/01/20) | 8,580 | 8,618,751 | ||||||
|
| |||||||
18,758,028 | ||||||||
Telecommunications — 3.2% | ||||||||
AT&T Inc. | 20,000 | 20,054,240 | ||||||
2.80%, 02/17/21 (Call 01/17/21) | 26,900 | 27,170,229 | ||||||
2.89%, 06/01/21, | 13,250 | 13,308,453 | ||||||
2.95%, 07/15/21, | 25,000 | 25,255,000 | ||||||
3.31%, 06/12/24, | 10,000 | 10,173,773 | ||||||
BellSouth LLC, 4.27%, 04/26/21 | 35,000 | 35,032,200 | ||||||
Deutsche Telekom International Finance BV | 13,687 | 13,686,989 | ||||||
2.58%, 01/17/20, | 12,000 | 12,010,729 | ||||||
Sprint Spectrum Co. LLC/Sprint Spectrum Co. | 4,651 | 4,680,069 | ||||||
Verizon Communications Inc. | ||||||||
2.70%, 05/22/20, | 22,940 | 23,003,219 | ||||||
3.12%, 03/16/22, | 15,373 | 15,620,700 | ||||||
|
| |||||||
199,995,601 | ||||||||
Transportation — 0.1% | ||||||||
Ryder System Inc., 2.65%, 03/02/20 | 7,725 | 7,736,840 | ||||||
|
|
Security | Par/ (000) | Value | ||||||
Trucking & Leasing — 0.2% | ||||||||
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.20%, 07/15/20 (Call 06/15/20)(a)(e) | $ | 12,000 | $ | 12,075,666 | ||||
|
| |||||||
Total Corporate Bonds & Notes — 60.7% |
| 3,798,096,201 | ||||||
|
| |||||||
Repurchase Agreements | ||||||||
Mizuho Securities USA Inc., | 30,000 | 30,000,000 | ||||||
|
| |||||||
Total Repurchase Agreements — 0.5% |
| 30,000,000 | ||||||
|
| |||||||
U.S. Government Agency Obligations |
| |||||||
Mortgage-Backed Securities — 0.1% | ||||||||
Federal National Mortgage Association 5.00% 01/01/20 | 13 | 13,831 | ||||||
FHLMC Multifamily Structured Pass Through Certificates | ||||||||
Series K010, Class A2, 4.33%, 10/25/20(b) | 1,237 | 1,258,371 | ||||||
Series K032, Class A1, 3.02%, 02/25/23 | 754 | 768,295 | ||||||
Series K037, Class A1, 2.59%, 04/25/23 | 967 | 978,307 | ||||||
Series K721, Class A1, 2.61%, 01/25/22 | 1,558 | 1,570,406 | ||||||
|
| |||||||
Total U.S. Government Agency Obligations — 0.1% |
| 4,589,210 | ||||||
|
| |||||||
Money Market Funds | ||||||||
BlackRock Cash Funds: Institutional, | 25,595 | 25,607,739 | ||||||
BlackRock Cash Funds: Treasury, | 114,910 | 114,910,000 | ||||||
|
| |||||||
Total Money Market Funds — 2.2% | 140,517,739 | |||||||
|
| |||||||
Total Investments in Securities — 98.6% | 6,175,331,364 | |||||||
Other Assets, Less Liabilities — 1.4% | 84,927,321 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 6,260,258,685 | ||||||
|
|
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Variable or floating rate security. Rate shown is the rate in effect as ofperiod-end. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Rates are discount rates or a range of discount rates at the time of purchase. |
(e) | All or a portion of this security is on loan. |
(f) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. |
(g) | 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. |
(h) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(i) | Maturity date represents next reset date. |
(j) | Affiliate of the Fund. |
(k) | Annualized7-day yield as ofperiod-end. |
18 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF |
(l) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at 10/31/18 | Net Activity | Shares Held at 10/31/19 | Value at | Net Realized | Change in Unrealized Appreciation | |||||||||||||||||||||||
Affiliated Issuer | (000) | (000) | (000) | 10/31/19 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 72,065 | (46,470 | ) | 25,595 | $ | 25,607,739 | $ | 289,373 | (b) | $ | 23,972 | $ | 8,065 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 430,219 | (315,309 | ) | 114,910 | 114,910,000 | 5,647,286 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 140,517,739 | $ | 5,936,659 | $ | 23,972 | $ | 8,065 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended October 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | (6,568,126 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts sold — in USD | $ | 31,623,065 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Asset-Backed Securities | $ | — | $ | 1,501,431,281 | $ | 5,235,000 | $ | 1,506,666,281 | ||||||||
Certificates of Deposit | — | 55,106,773 | — | 55,106,773 | ||||||||||||
Collaterized Mortgage Obligations | — | 538,183,788 | — | 538,183,788 | ||||||||||||
Commercial Paper | — | 102,171,372 | — | 102,171,372 | ||||||||||||
Corporate Bonds & Notes | — | 3,798,096,201 | — | 3,798,096,201 | ||||||||||||
Repurchase Agreements | — | 30,000,000 | — | 30,000,000 | ||||||||||||
U.S. Government Agency Obligations | — | 4,589,210 | — | 4,589,210 | ||||||||||||
Money Market Funds | 140,517,739 | — | — | 140,517,739 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 140,517,739 | $ | 6,029,578,625 | $ | 5,235,000 | $ | 6,175,331,364 | |||||||||
|
|
|
|
|
|
|
|
SCHEDULE OF INVESTMENTS | 19 |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Bond ETF |
The following table includes a rollforward for the year ended October 31, 2019 of investments whose values are classified as Level 3 as of the beginning or end of the year.
Asset Backed Securities | Collateralized Mortgage Obligations | |||||||
Balance at beginning of period | $ | 69,790,000 | $ | 1,443,544 | ||||
Realized gain (loss) and change in unrealized appreciation/depreciation | — | (577 | ) | |||||
Purchases | 5,235,000 | — | ||||||
Sales | (— | ) | (1,442,967 | ) | ||||
Transfers in(a) | — | — | ||||||
Transfers out(a) | (69,790,000 | )(b) | (— | ) | ||||
Paydown | — | — | ||||||
|
|
|
| |||||
Balance at end of period | $ | 5,235,000 | $ | — | ||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation on investments still held at end of period | $ | — | $ | — | ||||
|
|
|
|
(a) | Represents the value as of the beginning of the reporting period. |
(b) | Transfers out of Level 3 are due to resumption of trading of asset backed securities. |
The Fund’s investments that are categorized as Level 3 were valued utilizing a single broker quote without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.
See notes to financial statements.
20 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments October 31, 2019 | iShares® Short Maturity Municipal Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Municipal Debt Obligations |
| |||||||
Alabama — 2.4% | ||||||||
Bessemer Governmental Utility Services Corp. RB, 5.00%, 06/01/20 (BAM) | $ | 515 | $ | 525,223 | ||||
Black Belt Energy Gas District RB | 1,605 | 1,627,438 | ||||||
4.00%, 06/01/21 | 835 | 866,412 | ||||||
Series A, 5.00%, 12/01/19 | 500 | 501,285 | ||||||
Southeast Alabama Gas Supply District (The) RB, 4.00%, 06/01/22 | 1,500 | 1,587,420 | ||||||
|
| |||||||
5,107,778 | ||||||||
Arizona — 0.2% | ||||||||
Glendale Union High School District No. 205 GO, 5.00%, 07/01/21 | 500 | 531,265 | ||||||
|
| |||||||
California — 0.3% | ||||||||
Lancaster Redevelopment Agency Successor Agency TA, 3.00%, 08/01/20 | 700 | 709,793 | ||||||
|
| |||||||
Colorado — 0.8% | ||||||||
County of Arapahoe Co. RB, 1.12%, 08/01/31 | ||||||||
(Put 11/07/19)(a)(b) | 1,600 | 1,600,000 | ||||||
|
| |||||||
Connecticut — 4.3% | ||||||||
State of Connecticut GO | 670 | 708,840 | ||||||
5.00%, 07/15/22 | 900 | 987,165 | ||||||
Series A, 5.00%, 04/15/20 | 1,200 | 1,220,268 | ||||||
Series C, 1.19%, 05/15/34 (Put 11/07/19)(a)(b) | 2,325 | 2,325,000 | ||||||
Series C, 5.00%, 06/01/20 | 720 | 735,660 | ||||||
State of Connecticut Special Tax Revenue RB, Series A, 5.00%, 09/01/21 | 2,000 | 2,133,760 | ||||||
University of Connecticut RB, Series A, 5.00%, 04/15/20 | 1,000 | 1,016,520 | ||||||
|
| |||||||
9,127,213 | ||||||||
District of Columbia — 1.4% | ||||||||
District of Columbia RB, 1.17%, 04/01/38 | 2,900 | 2,900,000 | ||||||
|
| |||||||
Florida — 3.2% | ||||||||
Alachua County Health Facilities Authority RB 5.00%, 12/01/20 | 645 | 670,142 | ||||||
5.00%, 12/01/21 | 390 | 418,989 | ||||||
County of Palm Beach FL RB, 1.18%, 07/01/32 | ||||||||
(Put 11/07/19)(a)(b) | 5,000 | 5,000,000 | ||||||
Palm Beach County Health Facilities Authority RB, 5.00%, 08/15/20 | 530 | 545,481 | ||||||
Pinellas County Health Facilities Authority RB, Series A1, 1.24%, 11/01/38(a)(b) | 100 | 100,000 | ||||||
|
| |||||||
6,734,612 | ||||||||
Georgia — 12.1% | ||||||||
Bartow County Development Authority RB, 1.55%, 08/01/43 | ||||||||
(Put 08/19/22)(a)(b) | 2,000 | 1,990,640 | ||||||
Burke County Development Authority RB, 2.25%, 10/01/32 | ||||||||
(Put 05/25/23)(a)(b) | 2,000 | 2,031,140 | ||||||
City of Atlanta GA TA, 5.00%, 12/01/19 (TA) | 365 | 365,967 | ||||||
Cobb County Development Authority RB, 5.00%, 07/15/20 | 545 | 558,860 | ||||||
Main Street Natural Gas Inc. RB 2.19%, 08/01/48 (Put 09/01/23)(a) | 5,000 | 4,995,530 | ||||||
4.00%, 06/01/20 | 500 | 508,130 | ||||||
4.00%, 04/01/48 (Put 09/01/23)(a)(b) | 3,685 | 3,993,987 | ||||||
5.00%, 05/15/20 | 500 | 508,945 | ||||||
5.00%, 05/15/21 | 1,000 | 1,050,810 |
Security | Par (000) | Value | ||||||
Georgia (continued) | ||||||||
Monroe County Development Authority RB, 1.37%, 06/01/49(a)(b) | $ | 4,800 | $ | 4,800,000 | ||||
Tender Option Bond Trust Receipts/Certificates RB 1.15%, 07/01/49 (Put 11/07/19)(a)(b)(c) | 3,000 | 3,000,000 | ||||||
1.17%, 01/01/44 (Put 11/07/19) (AGM)(a)(b)(c) | 1,700 | 1,700,000 | ||||||
|
| |||||||
25,504,009 | ||||||||
Illinois — 4.2% | ||||||||
Chicago Transit Authority RB, 5.00%, 06/01/20 | 750 | 764,325 | ||||||
Illinois Development Finance Authority RB, 1.18%, 06/01/29 | ||||||||
(Put 11/07/19)(a)(b) | 1,100 | 1,100,000 | ||||||
Illinois Finance Authority RB, 1.18%, 11/01/38 | ||||||||
(Put 11/07/19)(a)(b) | 1,320 | 1,320,000 | ||||||
Illinois Health Facilities Authority RB, 1.17%, 08/15/35 | ||||||||
(Put 11/07/19)(a)(b) | 1,762 | 1,762,000 | ||||||
Tender Option Bond Trust Receipts/Certificates GO, 1.18%, 03/01/33 (Put 11/07/19)(a)(b)(c) | 4,000 | 4,000,000 | ||||||
|
| |||||||
8,946,325 | ||||||||
Indiana — 1.1% | ||||||||
City of Rockport IN RB, Series B, 1.35%, 07/01/25 | ||||||||
(Put 09/01/22)(a)(b) | 2,250 | 2,238,435 | ||||||
|
| |||||||
Iowa — 2.9% | ||||||||
Iowa Finance Authority RB, 1.41%, 04/01/22 | ||||||||
(Put 11/07/19)(a)(b) | 6,055 | 6,055,000 | ||||||
|
| |||||||
Kansas — 4.3% | ||||||||
City of Burlington KS RB | 6,000 | 6,000,000 | ||||||
1.41%, 09/01/35 (Put 11/07/19)(a)(b) | 3,000 | 3,000,000 | ||||||
|
| |||||||
9,000,000 | ||||||||
Kentucky — 1.9% | ||||||||
Kentucky Public Energy Authority RB 4.00%, 06/01/20 | 650 | 658,710 | ||||||
4.00%, 12/01/20 | 1,070 | 1,096,665 | ||||||
4.00%, 06/01/21 | 1,060 | 1,098,181 | ||||||
Kentucky State Property & Building Commission RB, Series D, 5.00%, 05/01/21 | 600 | 632,556 | ||||||
Tender Option Bond Trust Receipts/Certificates RB, Series 2018, 1.15%, 12/01/41 (Put 11/07/19) (AGM)(a)(b)(c) | 500 | 500,000 | ||||||
|
| |||||||
3,986,112 | ||||||||
Louisiana — 4.2% | ||||||||
Louisiana Public Facilities Authority RB, 5.00%, 05/15/21 | 400 | 422,164 | ||||||
Parish of St James LA RB, Series B1, | 8,500 | 8,500,000 | ||||||
|
| |||||||
8,922,164 | ||||||||
Maryland — 0.8% | ||||||||
Maryland Industrial Development Financing Authority RB, 1.51%, 03/01/30 (Put 11/07/19)(a)(b) | 1,600 | 1,600,000 | ||||||
|
| |||||||
Massachusetts — 1.0% | ||||||||
Massachusetts Development Finance Agency RB, 5.00%, 07/01/21 | 975 | 1,029,473 | ||||||
Town of Salisbury MA GOL, 2.00%, 09/11/20 | 1,000 | 1,004,410 | ||||||
|
| |||||||
2,033,883 | ||||||||
Michigan — 1.4% | ||||||||
Michigan State Housing Development Authority RB, Series D, 1.19%, 06/01/30 (Put 11/07/19)(a)(b) | 1,000 | 1,000,000 | ||||||
Michigan Strategic Fund RB, 1.49%, 06/01/39(a)(b) | 890 | 890,000 |
SCHEDULE OF INVESTMENTS | 21 |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Municipal Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Michigan (continued) | ||||||||
Wayne-Westland Community Schools GO | $ | 175 | $ | 181,860 | ||||
4.00%, 11/01/21(Q-SBLF) | 780 | 820,443 | ||||||
|
| |||||||
2,892,303 | ||||||||
Missouri — 1.1% | ||||||||
City of Washington MO COP, 5.00%, 03/01/22 | 350 | 378,840 | ||||||
RBC Municipal Products Inc. Trust RB, | 2,000 | 2,000,000 | ||||||
|
| |||||||
2,378,840 | ||||||||
Nebraska — 0.5% | ||||||||
Central Plains Energy Project RB, 5.00%, 08/01/39 | ||||||||
(Put 12/01/19)(a)(b) | 1,000 | 1,002,630 | ||||||
|
| |||||||
New Jersey — 16.1% | ||||||||
Borough of North Plainfield NJ GO, 3.00%, 12/11/19 | 1,400 | 1,402,450 | ||||||
Borough of Tinton Falls NJ GO, 2.00%, 10/29/20 | 900 | 905,886 | ||||||
Garden State Preservation Trust RB, 5.00%, 11/01/20 | 1,690 | 1,749,099 | ||||||
New Jersey Economic Development Authority RB | 1,730 | 1,749,462 | ||||||
5.00%, 06/15/21 | 4,250 | 4,481,115 | ||||||
5.00%, 06/15/21 | 1,500 | 1,581,570 | ||||||
5.50%, 09/01/21 (Call 03/01/21) | 675 | 709,783 | ||||||
Series A, 4.00%, 07/01/22 | 2,000 | 2,107,880 | ||||||
Series K, 5.25%, 12/15/20 (AMBAC) | 1,000 | 1,040,800 | ||||||
Series K, 5.50%, 12/15/19 (AMBAC) | 750 | 753,353 | ||||||
Series NN, 5.00%, 03/01/21 (SAP) | 1,215 | 1,269,675 | ||||||
Series NN, 5.00%, 03/01/22 | 2,200 | 2,368,300 | ||||||
Series PP, 5.00%, 06/15/20 | 1,475 | 1,506,196 | ||||||
Series UU, 5.00%, 06/15/23 | 1,270 | 1,412,672 | ||||||
Series XX, 5.00%, 06/15/20 | 200 | 204,230 | ||||||
New Jersey Health Care Facilities Financing Authority RB | 1,600 | 1,649,872 | ||||||
Series A, 5.00%, 07/01/20 | 500 | 512,510 | ||||||
New Jersey Sports & Exposition Authority RB, 5.00%, 09/01/20 | 1,250 | 1,282,887 | ||||||
New Jersey Transportation Trust Fund Authority RB | 1,500 | 1,506,330 | ||||||
5.25%, 12/15/20 (AGM) | 500 | 520,905 | ||||||
5.50%, 12/15/19 (NPFGC) | 530 | 532,433 | ||||||
Series A, 5.00%, 06/15/20 | 665 | 678,985 | ||||||
Series A, 5.25%, 12/15/19 | 530 | 532,237 | ||||||
Series A, 5.50%, 12/15/23 | 155 | 177,388 | ||||||
SeriesA-1, 5.00%, 06/15/20 | 1,275 | 1,303,573 | ||||||
Series B, 5.50%, 12/15/20 (NPFGC) | 155 | 161,730 | ||||||
Series B, 5.50%, 12/15/21 (NPFGC) | 625 | 675,906 | ||||||
Series D, 5.00%, 12/15/23 | 225 | 253,062 | ||||||
Township of Jackson New Jersey GO, 2.00%, 02/13/20 | 872 | 873,753 | ||||||
|
| |||||||
33,904,042 | ||||||||
New Mexico — 0.3% | ||||||||
New Mexico Municipal Energy Acquisition Authority RB, 4.00%, 05/01/22 | 600 | 638,046 | ||||||
|
| |||||||
New York — 13.4% | ||||||||
Adirondack Central School District GO, 2.25%, 07/17/20 (SAW) | 1,133 | 1,141,228 | ||||||
Albany Industrial Development Agency RB, | 1,110 | 1,110,000 | ||||||
Amherst Development Corp. RB, Series A, | 1,755 | 1,755,000 | ||||||
City of Tonawanda NY GOL, 2.50%, 06/04/20 | 1,219 | 1,226,850 |
Security | Par (000) | Value | ||||||
New York (continued) | ||||||||
City of Yonkers NY GOL, 3.00%, 12/17/19 | $ | 3,900 | $ | 3,908,229 | ||||
County of Nassau NY GOL, 4.00%, 12/10/19 | 5,000 | 5,014,500 | ||||||
East Islip Union Free School District GO, 2.25%, 07/02/20 (SAW) | 1,100 | 1,107,843 | ||||||
Honeoye Falls-Lima Central School District GO, 2.25%, 06/18/20 (SAW) | 1,425 | 1,433,749 | ||||||
New York City Water & Sewer System RB, 1.35%, 06/15/48(a)(b) | 400 | 400,000 | ||||||
Rhinebeck Central School District GO, 2.25%, 06/26/20 (SAW) | 1,500 | 1,509,540 | ||||||
Sandy Creek Central School District GO, 2.25%, 06/26/20 (SAW) | 1,100 | 1,106,996 | ||||||
South Jefferson Central School District GO, 2.25%, 07/09/20 (SAW) | 1,700 | 1,711,424 | ||||||
Tender Option Bond Trust Receipts/Certificates RB, 1.24%, 11/15/56 (Put 11/07/19)(a)(b)(c) | 2,500 | 2,500,000 | ||||||
Town of New Windsor New York GOL, 2.25%, 06/26/20 | 1,300 | 1,307,878 | ||||||
Watkins Glen Central School District GO, 2.25%, 06/23/20 (SAW) | 1,300 | 1,308,177 | ||||||
Windsor Central School District GO, 2.25%, 07/24/20 (SAW) | 1,700 | 1,712,121 | ||||||
|
| |||||||
28,253,535 | ||||||||
North Carolina — 0.3% | ||||||||
North Carolina Turnpike Authority RB | 425 | 441,817 | ||||||
5.00%, 01/01/22 | 215 | 230,601 | ||||||
|
| |||||||
672,418 | ||||||||
Ohio — 6.2% | ||||||||
City of Berea OH GOL, 3.00%, 03/12/20 | 1,600 | 1,609,040 | ||||||
City of Kirtland OH GOL, 2.75%, 06/18/20 (ST STANDBY NT PURCHASE) | 600 | 605,310 | ||||||
City of Miamisburg OH GOL, 3.00%, 06/24/20 (ST STANDBY NT PURCHASE) | 1,500 | 1,516,095 | ||||||
City of Parma OH GOL, 2.50%, 07/23/20 (ST STANDBY NT PURCHASE) | 1,200 | 1,210,224 | ||||||
County of Belmont OH GOL, 2.00%, 08/27/20 | 1,510 | 1,515,723 | ||||||
County of Lorain OH GOL, 3.00%, 02/07/20 | 2,325 | 2,335,951 | ||||||
Lancaster Port Authority RB, 5.00%, 02/01/21 | 300 | 312,852 | ||||||
Little Miami Local School District GO, 3.00%, 11/21/19 | 1,000 | 1,000,810 | ||||||
State of Ohio RB, 1.30%, 11/01/35 | 3,000 | 2,999,703 | ||||||
|
| |||||||
13,105,708 | ||||||||
Pennsylvania — 2.6% | ||||||||
Commonwealth of Pennsylvania GO, 5.00%, 04/01/20 | 800 | 812,376 | ||||||
Connellsville Area School District GOL | 500 | 520,565 | ||||||
4.00%, 08/15/22 (BAM SAW) | 500 | 531,365 | ||||||
Palmyra Area School District GOL | 560 | 566,104 | ||||||
4.00%, 04/01/21 (SAW) | 900 | 933,462 | ||||||
Pennsylvania Economic Development Financing Authority RB, 2.15%, 11/01/21 | 1,000 | 1,013,160 | ||||||
School District of Philadelphia (The) GO, Series C, 4.00%, 03/31/20 (SAW) | 1,000 | 1,010,520 | ||||||
|
| |||||||
5,387,552 | ||||||||
Tennessee — 0.2% | ||||||||
Jackson Energy Authority RB, 5.00%, 12/01/19 | 350 | 350,973 | ||||||
|
| |||||||
Texas — 9.0% | ||||||||
City of Houston TX GOL, Series A, 5.00%, 03/01/20 | 1,000 | 1,012,140 | ||||||
Harris CountyTexas RB, 1.41%, 12/11/19 | 3,700 | 3,700,535 |
22 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Short Maturity Municipal Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Texas (continued) | ||||||||
Port of Arthur Navigation District Industrial Development Corp. RB, 1.16%, 03/01/42 | $ | 2,000 | $ | 2,000,000 | ||||
State of Texas GO | 660 | 660,000 | ||||||
1.21%, 12/01/41 (Put 11/07/19)(a)(b) | 6,760 | 6,760,000 | ||||||
1.26%, 12/01/47 (Put 11/07/19)(a)(b) | 800 | 800,000 | ||||||
Tender Option Bond Trust Receipts/Certificates RB | 1,500 | 1,500,000 | ||||||
1.25%, 01/01/28 (Put 11/07/19)(a)(b)(c) | 2,435 | 2,435,000 | ||||||
|
| |||||||
18,867,675 | ||||||||
Utah — 0.9% | ||||||||
County of Utah UT RB, 1.18%, 05/15/51 | 2,000 | 2,000,000 | ||||||
|
| |||||||
Virginia — 0.9% | ||||||||
University of Virginia RB, 1.29%, 05/27/20 | 2,000 | 2,000,540 | ||||||
|
| |||||||
Washington — 1.0% | ||||||||
Grant County Public Utility District No. 2 RB, 2.00%, 01/01/44 (Put 09/01/20)(a)(b) | 1,000 | 1,006,600 | ||||||
Washington Higher Education Facilities Authority RB, 1.18%, 10/01/29 (Put 11/07/19)(a)(b) | 1,000 | 1,000,000 | ||||||
|
| |||||||
2,006,600 | ||||||||
Wisconsin — 0.2% | ||||||||
Wisconsin Health & Educational Facilities Authority RB, 5.00%, 10/01/21 | 400 | 427,752 | ||||||
|
| |||||||
Total Municipal Debt Obligations — 99.2% |
| 208,885,203 | ||||||
|
|
Security | Shares (000) | Value | ||||||
Money Market Funds | ||||||||
BlackRock Liquidity Funds: MuniCash, 1.04%(d)(e) | 60 | $ | 60,272 | |||||
|
| |||||||
Total Money Market Funds — 0.0% | 60,272 | |||||||
|
| |||||||
Total Investments in Securities — 99.2% | 208,945,475 | |||||||
Other Assets, Less Liabilities — 0.8% | 1,587,001 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 210,532,476 | ||||||
|
|
(a) | Variable or floating rate security. Rate shown is the rate in effect as ofperiod-end. |
(b) | Security is payable upon demand on each reset date. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Affiliate of the Fund. |
(e) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at 10/31/18 | Net Activity | Shares Held at 10/31/19 | Value at | Net Realized | Change in Unrealized Appreciation | |||||||||||||||||||||||
Affiliated Issuer | (000) | (000) | (000) | 10/31/19 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Liquidity Funds: MuniCash | 80 | (20 | ) | 60 | $ | 60,272 | $ | 18,755 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Municipal Debt Obligations | $ | — | $ | 208,885,203 | $ | — | $ | 208,885,203 | ||||||||
Money Market Funds | 60,272 | — | — | 60,272 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 60,272 | $ | 208,885,203 | $ | — | $ | 208,945,475 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 23 |
Schedule of Investments October 31, 2019 | iShares® Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Asset-Backed Securities |
| |||||||
BMW Vehicle Owner Trust, 2.05%, 05/25/22 | $ | 15,830 | $ | 15,849,576 | ||||
Capital One Multi-Asset Execution Trust, Class A6, 1.82%, 09/15/22 | 3,000 | 2,999,646 | ||||||
CarMax Auto Owner Trust | ||||||||
Class A2A, 2.21%, 12/15/22 | 7,280 | 7,300,159 | ||||||
Class A2A, 3.02%, 07/15/22 | 2,883 | 2,897,685 | ||||||
CNH Equipment Trust, Class A2, 2.96%, 05/16/22 | 4,136 | 4,155,632 | ||||||
Discover Card Execution Note Trust, Class A, 2.19%, 12/15/23, | 10,000 | 10,004,847 | ||||||
Toyota Auto Receivables Owner Trust, Class A2, 2.77%, 08/16/21 | 1,679 | 1,683,192 | ||||||
|
| |||||||
Total Asset-Backed Securities — 2.0% | 44,890,737 | |||||||
|
| |||||||
Certificates of Deposit | ||||||||
Banco Santander SA, 3.09%, 01/29/20 | 8,000 | 8,022,084 | ||||||
Banco Santander SA/New York, 2.24%, 01/06/20, (1 mo. LIBOR US + 0.240%)(a) | 5,000 | 5,001,188 | ||||||
Bank of Montreal/Chicago IL | 20,000 | 20,025,019 | ||||||
2.34%, 03/06/20, (3 mo. LIBOR US + | 2,000 | 2,001,140 | ||||||
2.46%, 11/01/19(a) | 1,500 | 1,500,000 | ||||||
Bank of Nova Scotia/Houston | 3,000 | 3,000,127 | ||||||
2.27%, 10/23/20, (FEDL01 + 0.450%)(a) | 8,000 | 8,000,676 | ||||||
2.33%, 02/18/20, (3 mo. LIBOR US + | 1,000 | 1,000,573 | ||||||
Barclays Bank PLC | 2,000 | 2,001,410 | ||||||
2.48%, 10/08/20, (3 mo. LIBOR US + 0.450%)(a) | 5,000 | 4,999,980 | ||||||
3.01%, 12/23/19 | 2,000 | 2,003,065 | ||||||
3.06%, 12/05/19 | 3,000 | 3,003,407 | ||||||
3.20%, 01/31/20 | 3,000 | 3,008,421 | ||||||
BNP Paribas SA/New York NY, | 17,000 | 16,999,981 | ||||||
Canadian Imperial Bank of Commerce, 2.67%, 05/02/20(a) | 2,000 | 2,003,011 | ||||||
Credit Agricole Corporate and Investment Bank/New York | 3,000 | 3,000,342 | ||||||
2.48%, 08/25/20(a) | 5,000 | 5,005,580 | ||||||
2.52%, 07/13/20, (3 mo. LIBOR US + 0.470%)(a) | 6,000 | 6,013,189 | ||||||
2.54%, 05/11/20, (3 mo. LIBOR US + 0.385%)(a) | 2,000 | 2,003,349 | ||||||
2.64%, 09/09/21, (3 mo. LIBOR US + 0.480%)(a) | 6,000 | 6,001,058 | ||||||
2.72%, 09/24/20, (3 mo. LIBOR US + 0.400%)(a) | 1,800 | 1,802,359 | ||||||
Credit Industriel Et Commercial | 7,000 | 6,947,340 | ||||||
2.89%, 11/07/19 | 7,000 | 6,997,592 | ||||||
Credit Suisse AG/New York NY | 3,000 | 3,000,074 | ||||||
2.19%, 05/22/20, (SOFRRATE + 0.370%)(a) | 5,000 | 4,999,207 | ||||||
2.26%, 09/25/20, (SOFRRATE + 0.450%)(a) | 7,000 | 7,010,789 | ||||||
2.70%, 05/01/20 | 4,000 | 4,015,095 | ||||||
DNB Bank ASA/New York, 2.28%, 07/19/21, | ||||||||
(3 mo. LIBOR US + 0.220%)(a) | 13,000 | 12,999,974 | ||||||
DZ Bank AG Deutsche Zentral | 20,000 | 19,874,194 | ||||||
4.41%, 02/03/20 | 8,000 | 7,960,110 | ||||||
Goldman Sachs Bank USA/New York NY | 4,000 | 3,998,913 | ||||||
2.73%, 06/29/20, (SOFRRATE + 0.250%)(a) | 2,750 | 2,749,981 |
Security | Par (000) | Value | ||||||
Landesbank Baden-Wuerttemberg | $ | 8,000 | $ | 8,004,979 | ||||
2.28%, 02/05/20 | 20,000 | 19,883,421 | ||||||
Lloyds Bank Corporate Markets PLC/New York NY | 7,000 | 7,004,962 | ||||||
2.42%, 09/24/20, (3 mo. LIBOR US + 0.500%)(a) | 2,800 | 2,806,135 | ||||||
2.46%, 04/26/21(a) | 7,000 | 7,007,100 | ||||||
2.57%, 07/19/21(a) | 4,000 | 3,999,989 | ||||||
Mizuho Bank Ltd., 2.18%, 03/23/20 | 8,000 | 8,006,301 | ||||||
Mizuho Bank Ltd./NY | 6,000 | 5,999,126 | ||||||
2.38%, 04/15/20, (3 mo. LIBOR US + 0.330%)(a) | 1,500 | 1,501,605 | ||||||
2.40%, 01/15/20, (3 mo. LIBOR US + 0.310%)(a) | 2,000 | 2,001,026 | ||||||
Morgan Stanley Bank N.A., 2.32%, 02/19/21(b) | 4,400 | 4,399,998 | ||||||
MUFG Bank Ltd. | 6,000 | 6,002,205 | ||||||
2.02%, 08/26/20 | 4,000 | 4,002,389 | ||||||
2.44%, 01/25/21, (3 mo. LIBOR US + 0.500%)(a) | 2,000 | 2,004,363 | ||||||
2.50%, 07/16/21, (3 mo. LIBOR US + 0.500%)(a) | 3,000 | 3,001,488 | ||||||
2.72%, 02/24/20 | 2,000 | 2,005,046 | ||||||
2.84%, 02/24/20 | 3,000 | 3,008,670 | ||||||
Natixis SA/New York NY | 3,000 | 3,002,434 | ||||||
2.36%, 07/23/20(a) | 4,000 | 4,003,136 | ||||||
Nordea Bank AB/New York NY 2.30%, 07/10/20, (3 mo. LIBOR US + 0.290%)(a) | 4,000 | 4,005,452 | ||||||
2.45%, 08/10/20, (3 mo. LIBOR US + 0.270%)(a) | 1,000 | 1,001,375 | ||||||
Norinchukin Bank (The), 1.93%, 04/09/20 | 15,000 | 15,000,061 | ||||||
Oversea-Chinese Banking Corp. Ltd., 1.87%, 08/04/20 | 12,000 | 12,000,000 | ||||||
Skandin Enskilda Banken AG, 1.93%, 10/16/20 | 6,000 | 6,003,251 | ||||||
Skandinaviska Enskilda Banken AB/New York NY, 2.24%, 10/02/20, (3 mo. LIBOR US + 0.150%)(a) | 5,000 | 4,999,983 | ||||||
Societe Generale/New York NY | 4,000 | 4,002,067 | ||||||
2.80%, 03/13/20 | 2,000 | 2,005,759 | ||||||
Standard Chartered Bank, 1.99%, 05/01/20 | 15,000 | 15,003,759 | ||||||
Sumitomo Mitsui Banking Corp./New York | 2,000 | 2,002,723 | ||||||
2.45%, 07/12/21, (3 mo. LIBOR US + 0.350%)(a) | 5,000 | 5,001,645 | ||||||
2.62%, 06/18/20, (3 mo. LIBOR US + 0.410%)(a) | 8,200 | 8,216,156 | ||||||
2.65%, 09/10/21, (3 mo. LIBOR US + 0.440%)(a) | 5,000 | 4,999,981 | ||||||
2.68%, 02/12/21(a) | 13,000 | 13,014,621 | ||||||
Sumitomo Mitsui Trust Bank Ltd./New York | 2,000 | 2,000,728 | ||||||
2.32%, 05/18/20(a) | 6,000 | 6,003,518 | ||||||
2.33%, 02/25/20(a) | 6,000 | 6,003,114 | ||||||
Svenska Handelsbanken/New York NY | 10,000 | 9,999,966 | ||||||
2.37%, 12/19/19, (3 mo. LIBOR US + 0.210%)(a) | 3,000 | 3,000,917 | ||||||
2.49%, 04/01/20, (3 mo. LIBOR US + 0.400%)(a) | 3,000 | 3,004,677 | ||||||
Toronto-Dominion Bank (The), 2.17%, 07/24/20 | 7,000 | 7,014,326 | ||||||
Toronto-Dominion Bank/NY | 6,000 | 5,999,984 | ||||||
2.30%, 09/28/20, (3 mo. LIBOR US + 0.190%)(a) | 10,000 | 10,004,416 | ||||||
|
| |||||||
Total Certificates of Deposit — 19.8% | 434,882,080 | |||||||
|
| |||||||
Commercial Paper | ||||||||
ABN AMRO Funding USA LLC, 2.73%, 12/09/19(c) | 4,000 | 3,992,425 |
24 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
AT&T Inc. | $ | 9,000 | $ | 8,981,000 | ||||
2.44%, 12/06/19(c) | 11,000 | 10,976,504 | ||||||
2.82%, 12/02/19(c) | 7,000 | 6,986,734 | ||||||
Atlantic Asset Securitization LLC, | 5,000 | 4,963,508 | ||||||
Barclays Bank PLC, 3.35%, 11/15/19(c) | 2,000 | 1,998,486 | ||||||
Bedford Row Funding Corp., 1.96%, 04/16/20(c) | 3,000 | 2,975,472 | ||||||
Bell Canada Inc. | 6,500 | 6,474,220 | ||||||
2.19%, 01/14/20(c) | 10,000 | 9,958,021 | ||||||
2.19%, 01/17/20(c) | 6,000 | 5,973,766 | ||||||
2.30%, 02/13/20(c) | 4,500 | 4,473,159 | ||||||
2.42%, 11/04/19(c) | 8,350 | 8,348,291 | ||||||
BP Capital Markets PLC, 2.97%, 03/02/20(c) | 9,000 | 8,944,373 | ||||||
CenterPoint Energy Inc., 2.00%, 11/25/19(c) | 5,000 | 4,993,299 | ||||||
COCA-COLA Co., 3.07%, 12/09/19(c) | 1,000 | 998,235 | ||||||
DBS Bank Ltd., 1.96%, 04/20/20(c) | 9,600 | 9,516,935 | ||||||
DNB Bank ASA, 2.18%, 03/05/20, | ||||||||
(1 mo. LIBOR US + 0.190%)(a) | 7,500 | 7,500,076 | ||||||
Electricite de France SA, 2.19%, 01/22/20(c) | 9,000 | 8,956,155 | ||||||
Enbridge Inc. | 15,000 | 14,987,063 | ||||||
2.31%, 12/17/19(c) | 8,100 | 8,078,448 | ||||||
2.34%, 12/18/19(c) | 3,000 | 2,991,832 | ||||||
Hitachi Capital America Corp. | 2,000 | 1,997,737 | ||||||
2.16%, 11/14/19(c) | 10,000 | 9,992,008 | ||||||
HSBC Bank PLC, 2.23%, 10/13/20, | 10,000 | 9,999,976 | ||||||
Hyundai Capital America | 7,000 | 6,985,790 | ||||||
2.28%, 11/01/19(c) | 5,000 | 4,999,722 | ||||||
ING U.S. Funding LLC, 2.28%, 09/23/20, | 10,000 | 10,000,014 | ||||||
Keurig Dr. Pepper Inc., 2.24%, 12/06/19(c) | 4,000 | 3,991,456 | ||||||
Lloyds Bank PLC, 2.02%, 02/21/20, | 3,500 | 3,500,877 | ||||||
Mondelez International Inc., 2.12%, 11/06/19(c) | 10,750 | 10,746,513 | ||||||
National Grid Electricity Transmission PLC | 2,000 | 1,988,340 | ||||||
2.12%, 01/23/20(c) | 2,000 | 1,990,135 | ||||||
2.27%, 12/19/19(c) | 8,000 | 7,976,600 | ||||||
Nationwide Building Society | 10,000 | 9,916,063 | ||||||
2.32%, 01/21/20(c) | 17,250 | 17,182,340 | ||||||
Nissan Motor Acceptance Corp. | 6,000 | 5,965,960 | ||||||
2.26%, 02/28/20(c) | 6,250 | 6,203,750 | ||||||
2.44%, 11/27/19(c) | 4,000 | 3,994,969 | ||||||
Nutrien Ltd. | 6,000 | 5,983,664 | ||||||
2.23%, 11/25/19(c) | 18,000 | 17,974,625 | ||||||
2.24%, 12/17/19(c) | 6,000 | 5,984,036 | ||||||
Oversea-Chinese Banking Corp. Ltd., 1.94%, 10/19/20(c) | 8,000 | 7,853,995 | ||||||
Parker-Hannifin Corp. 2.24%, 01/07/20(c) | 3,000 | 2,989,471 | ||||||
2.26%, 12/05/19(c) | 6,000 | 5,989,692 | ||||||
2.27%, 11/05/19(c) | 5,000 | 4,998,892 | ||||||
2.27%, 11/06/19(c) | 8,500 | 8,497,736 | ||||||
2.27%, 11/25/19(c) | 5,300 | 5,293,802 | ||||||
2.28%, 12/04/19(c) | 4,000 | 3,993,340 |
Security | Par (000) | Value | ||||||
Reckitt Benckiser Treasury Services PLC | $ | 3,000 | $ | 2,963,479 | ||||
2.23%, 04/20/20(c) | 8,000 | 7,922,333 | ||||||
2.30%, 01/08/20(c) | 15,000 | 14,946,554 | ||||||
2.50%, 04/30/20(c) | 9,000 | 8,907,089 | ||||||
2.52%, 04/09/20(c) | 5,500 | 5,450,289 | ||||||
2.79%, 02/03/20(c) | 2,500 | 2,487,432 | ||||||
Rogers Communications Inc., 2.24%, 11/05/19(c) | 5,000 | 4,998,580 | ||||||
Royal Bank of Canada, 2.13%, 08/17/20, (SOFRRATE + 0.310%)(a) | 12,000 | 11,994,769 | ||||||
Salisbury Receivables Co. LLC, 2.48%, 04/17/20, (SOFRRATE + 0.480%)(a) | 3,000 | 3,000,000 | ||||||
Santander UK PLC, 2.06%, 02/03/20(c) | 4,000 | 3,980,208 | ||||||
Shell International Finance BV, 1.97%, 06/26/20(c) | 6,500 | 6,417,794 | ||||||
Societe Generale SA | 10,000 | 10,008,658 | ||||||
2.38%, 01/09/20(a) | 2,000 | 2,001,267 | ||||||
2.42%, 12/16/19, | 1,000 | 1,000,652 | ||||||
Sumitomo Mitsui Banking Corp./New York, | 9,000 | 8,978,449 | ||||||
Suncor Energy Inc. | 4,885 | 4,857,671 | ||||||
2.11%, 02/24/20(c) | 10,000 | 9,936,490 | ||||||
2.44%, 11/04/19(c) | 4,750 | 4,748,922 | ||||||
Svenska Handelsbanken AB, 1.94%, 10/16/20(c) | 4,000 | 3,924,223 | ||||||
TELUS Corp. | 4,000 | 3,995,038 | ||||||
2.42%, 11/15/19(c) | 12,200 | 12,189,478 | ||||||
Toronto-Dominion Bank (The), 2.10%, 06/12/20, | 5,000 | 4,998,823 | ||||||
TransCanada PipeLines Ltd. | 5,050 | 5,029,683 | ||||||
2.23%, 12/06/19(c) | 5,000 | 4,989,850 | ||||||
UBS AG/London | 5,000 | 5,000,326 | ||||||
2.32%, 04/24/20 (Call 01/27/20)(c) | 4,000 | 3,962,786 | ||||||
2.48%, 12/19/19, (3 mo. LIBOR US + 0.320%)(a) | 3,000 | 3,001,027 | ||||||
VW CR Inc. | 4,250 | 4,231,619 | ||||||
2.31%, 11/19/19(c) | 5,000 | 4,994,609 | ||||||
2.32%, 01/06/20(c) | 3,231 | 3,218,390 | ||||||
VW Credit Inc. | 3,700 | 3,692,906 | ||||||
2.50%, 01/14/20(c) | 4,000 | 3,982,458 | ||||||
2.50%, 04/01/20(c) | 3,000 | 2,972,919 | ||||||
Walgreens Boots Alliance Inc. | 6,000 | 5,998,638 | ||||||
2.28%, 03/27/20(c) | 8,000 | 7,930,276 | ||||||
2.43%, 02/03/20(c) | 6,000 | 5,966,433 | ||||||
2.48%, 01/24/20(c) | 4,250 | 4,228,777 | ||||||
Welltower Inc., 2.19%, 11/12/19(c) | 5,000 | 4,996,562 | ||||||
Westpac Banking Corp., 2.43%, 11/01/19, (3 mo. LIBOR US + 0.180%)(a) | 2,000 | 2,000,000 | ||||||
|
| |||||||
Total Commercial Paper — 24.9% | 545,964,962 | |||||||
|
| |||||||
Corporate Bonds & Notes | ||||||||
Aerospace & Defense — 1.3% | ||||||||
General Dynamics Corp., 2.88%, 05/11/20 | 2,000 | 2,010,020 |
SCHEDULE OF INVESTMENTS | 25 |
Schedule of Investments (continued) October 31, 2019 | iShares® Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Aerospace & Defense (continued) | ||||||||
Lockheed Martin Corp., 4.25%, 11/15/19 | $ | 2,000 | $ | 2,001,381 | ||||
Raytheon Co., 3.13%, 10/15/20 | 4,600 | 4,655,752 | ||||||
United Technologies Corp. | 12,494 | 12,498,476 | ||||||
2.60%, 11/01/19, | 500 | 500,000 | ||||||
2.82%, 08/16/21 (Call 11/18/19), | 6,000 | 6,001,158 | ||||||
3.35%, 08/16/21 | 540 | 554,162 | ||||||
|
| |||||||
28,220,949 | ||||||||
Auto Manufacturers — 5.5% | ||||||||
American Honda Finance Corp. | 500 | 499,998 | ||||||
2.20%, 06/27/22 | 10,100 | 10,211,099 | ||||||
2.30%, 02/21/20, | 2,000 | 2,000,878 | ||||||
2.38%, 06/16/20, | 4,000 | 4,005,486 | ||||||
2.39%, 02/12/21, | 1,000 | 999,764 | ||||||
2.49%, 06/11/21, | 4,120 | 4,129,823 | ||||||
BMW U.S. Capital LLC | 10,000 | 9,983,132 | ||||||
2.41%, 04/12/21, | 2,000 | 2,003,100 | ||||||
2.42%, 04/06/20, | 5,000 | 5,006,022 | ||||||
2.68%, 08/13/21, | 5,000 | 5,009,409 | ||||||
3.25%, 08/14/20(d) | 1,850 | 1,871,184 | ||||||
Daimler Finance North America LLC | 4,000 | 4,002,120 | ||||||
2.30%, 02/12/21(d) | 1,535 | 1,540,540 | ||||||
2.60%, 02/22/21, | 3,000 | 3,000,600 | ||||||
3.10%, 05/04/20(d) | 9,325 | 9,373,817 | ||||||
3.40%, 02/22/22(d) | 5,000 | 5,129,689 | ||||||
Harley-Davidson Financial Services Inc. | 8,000 | 7,994,469 | ||||||
2.65%, 05/21/20, | 2,000 | 2,001,192 | ||||||
Hyundai Capital America | 3,304 | 3,309,398 | ||||||
2.85%, 11/01/22(d) | 3,440 | 3,464,819 | ||||||
2.95%, 03/12/21, | 1,000 | 1,001,250 | ||||||
3.45%, 03/12/21(d) | 2,200 | 2,233,000 | ||||||
Nissan Motor Acceptance Corp. | ||||||||
2.49%, 09/28/20, | 750 | 750,294 | ||||||
2.58%, 01/13/20, | 1,955 | 1,956,525 | ||||||
PACCAR Financial Corp. | 580 | 581,607 | ||||||
2.44%, 05/10/21, | 680 | 680,100 | ||||||
2.59%, 06/17/22, | 10,000 | 10,012,631 | ||||||
3.10%, 05/10/21 | 915 | 933,595 | ||||||
Toyota Motor Credit Corp. | 1,500 | 1,500,870 | ||||||
2.50%, 03/12/20, | 1,500 | 1,502,077 | ||||||
3.05%, 01/08/21 | 2,435 | 2,472,393 | ||||||
Volkswagen Group of America Finance LLC | 430 | 432,891 | ||||||
2.97%, 09/24/21, | 3,870 | 3,889,839 | ||||||
3.88%, 11/13/20(d) | 7,000 | 7,127,151 | ||||||
|
| |||||||
120,610,762 | ||||||||
Auto Parts & Equipment — 0.0% | ||||||||
Toyota Industries Corp., 3.11%, 03/12/22 | 1,000 | 1,021,903 | ||||||
|
| |||||||
Banks — 27.4% | ||||||||
ABN AMRO Bank NV 2.45%, 06/04/20(d) | 5,000 | 5,012,120 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
2.65%, 01/19/21(d) | $ | 8,955 | $ | 9,015,898 | ||||
2.70%, 08/27/21, | 3,000 | 3,011,076 | ||||||
3.40%, 08/27/21(d) | 2,500 | 2,558,920 | ||||||
ANZ New Zealand Int’l Ltd./London | 1,351 | 1,353,915 | ||||||
2.75%, 01/22/21(d) | 4,000 | 4,035,760 | ||||||
2.94%, 07/28/21, | 4,000 | 4,043,686 | ||||||
Australia & New Zealand Banking Group Ltd. | ||||||||
2.50%, 11/09/20, | 1,000 | 1,001,746 | ||||||
4.88%, 01/12/21(d) | 4,000 | 4,138,991 | ||||||
Australia & New Zealand Banking Group Ltd./New York NY, 2.25%, 11/09/20 | 4,500 | 4,520,798 | ||||||
Bank of America Corp. | 6,000 | 6,040,168 | ||||||
5.88%, 01/05/21 | 3,000 | 3,137,573 | ||||||
Bank of America N.A. | ||||||||
2.40%, 06/21/21 (Call 06/21/20), | 7,000 | 7,000,379 | ||||||
2.48%, 05/24/21 (Call 04/24/21), | 5,000 | 5,004,764 | ||||||
Bank of Montreal, 2.73%, 12/12/19, | 510 | 510,413 | ||||||
Bank of New York Mellon (The), 2.41%, 06/04/21 (Call 06/04/20), (3 mo. LIBOR US + 0.280%)(a) | 12,000 | 12,015,960 | ||||||
Bank of Nova Scotia (The) | 1,000 | 1,001,817 | ||||||
2.35%, 10/21/20 | 6,000 | 6,028,819 | ||||||
2.41%, 04/20/21, (3 mo. LIBOR US + 0.440%)(a) | 2,000 | 2,006,444 | ||||||
Banque Federative du Credit Mutuel SA | 14,385 | 14,409,381 | ||||||
2.75%, 10/15/20(d) | 3,000 | 3,025,268 | ||||||
BB&T Corp., 2.15%, 02/01/21 (Call 01/01/21) | 6,172 | 6,193,136 | ||||||
BNP Paribas SA, 2.38%, 05/21/20 | 4,900 | 4,912,935 | ||||||
BNZ International Funding Ltd./London, 2.90%, 02/21/22(d) | 3,700 | 3,760,708 | ||||||
BPCE SA | 7,550 | 7,548,220 | ||||||
2.65%, 02/03/21 | 1,200 | 1,208,506 | ||||||
2.75%, 12/02/21 | 11,945 | 12,112,995 | ||||||
3.15%, 07/31/20(d) | 3,000 | 3,027,768 | ||||||
Branch Banking & Trust Co. | 15,000 | 15,002,250 | ||||||
2.25%, 06/01/20 (Call 05/01/20) | 7,600 | 7,611,174 | ||||||
Capital One N.A. | 4,550 | 4,548,413 | ||||||
2.35%, 01/31/20 (Call 12/31/19) | 7,239 | 7,243,138 | ||||||
2.95%, 07/23/21 (Call 06/23/21) | 4,500 | 4,569,074 | ||||||
Citibank N.A. | 3,000 | 3,004,138 | ||||||
2.42%, 03/13/21 (Call 03/13/20), | 5,590 | 5,592,650 | ||||||
2.50%, 07/23/21 (Call 06/23/21), | 2,000 | 2,007,804 | ||||||
2.53%, 02/12/21 (Call 01/12/21), | 1,000 | 1,001,485 | ||||||
2.85%, 02/12/21 (Call 01/12/21) | 6,300 | 6,373,274 | ||||||
3.05%, 05/01/20 (Call 04/01/20) | 3,000 | 3,013,376 | ||||||
3.17%, 02/19/22 (Call 02/19/21)(b) | 2,000 | 2,029,856 | ||||||
Citigroup Inc. 2.31%, 11/04/22 (Call 11/04/21)(b) | 5,000 | 5,014,400 |
26 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
2.68%, 11/04/22 (Call 11/04/21), | $ | 5,000 | $ | 5,011,300 | ||||
Citizens Bank N.A./Providence RI, | 2,500 | 2,501,557 | ||||||
Commonwealth Bank of Australia | 1,591 | 1,590,987 | ||||||
2.20%, 11/09/20(d) | 4,000 | 4,013,976 | ||||||
2.58%, 03/10/20, | 1,615 | 1,617,495 | ||||||
Commonwealth Bank of Australia/New York NY, 2.55%, 03/15/21 | 11,575 | 11,695,203 | ||||||
Cooperatieve Rabobank UA, 4.75%, 01/15/20(d) | 2,167 | 2,178,879 | ||||||
Cooperatieve Rabobank UA/NY | 8,500 | 8,505,185 | ||||||
2.37%, 04/26/21, (3 mo. LIBOR US + 0.430%)(a) | 1,000 | 1,003,044 | ||||||
2.50%, 01/19/21 | 4,080 | 4,110,869 | ||||||
Credit Agricole Corporate and Investment Bank/New York, 2.60%, 01/14/21, | 2,000 | 2,007,992 | ||||||
Credit Agricole SA/London, 3.28%, 07/01/21, | 4,000 | 4,055,407 | ||||||
Credit Suisse AG/New York NY, 4.38%, 08/05/20 | 5,020 | 5,115,070 | ||||||
DBS Group Holdings Ltd., 2.85%, 04/16/22(d) | 3,267 | 3,318,003 | ||||||
DNB Bank ASA, 2.38%, 06/02/21(d) | 4,450 | 4,480,740 | ||||||
Fifth Third Bank/Cincinnati OH, 2.19%, 10/30/20 (Call 09/30/20), (3 mo. LIBOR US + 0.250%)(a) | 1,000 | 1,000,890 | ||||||
Goldman Sachs Bank USA/New York NY | 4,915 | 4,919,968 | ||||||
3.20%, 06/05/20 | 445 | 448,454 | ||||||
Goldman Sachs Group Inc. (The) | 12,000 | 12,033,650 | ||||||
2.60%, 12/27/20 (Call 12/27/19) | 5,300 | 5,305,109 | ||||||
HSBC Holdings PLC | 7,563 | 7,571,924 | ||||||
2.78%, 09/11/21 (Call 09/11/20), | 4,000 | 4,008,911 | ||||||
3.40%, 03/08/21 | 5,000 | 5,086,446 | ||||||
HSBC USA Inc. | 4,000 | 4,004,178 | ||||||
2.38%, 11/13/19 | 1,120 | 1,120,103 | ||||||
ING Bank NV | 5,865 | 5,878,390 | ||||||
2.45%, 03/16/20(d) | 12,000 | 12,023,111 | ||||||
JPMorgan Chase & Co., 2.25%, 01/23/20 (Call 12/23/19) | 8,500 | 8,503,740 | ||||||
JPMorgan Chase Bank N.A. | 2,500 | 2,501,168 | ||||||
2.49%, 02/19/21 (Call 02/19/20), | 5,000 | 5,003,078 | ||||||
2.60%, 02/01/21 (Call 02/01/20)(b) | 3,000 | 3,004,032 | ||||||
KeyBank N.A./Cleveland OH, 3.30%, 02/01/22 | 2,115 | 2,178,656 | ||||||
Lloyds Bank PLC | 7,829 | 7,876,154 | ||||||
3.30%, 05/07/21 | 3,000 | 3,054,231 | ||||||
6.38%, 01/21/21 | 3,500 | 3,683,710 | ||||||
Macquarie Bank Ltd., 2.40%, 01/21/20(d) | 3,850 | 3,853,196 | ||||||
Mitsubishi UFJ Trust & Banking Corp., | 3,500 | 3,525,938 | ||||||
Mizuho Bank Ltd. | 3,000 | 3,005,173 | ||||||
2.70%, 10/20/20(d) | 3,700 | 3,729,606 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Morgan Stanley | $ | 3,000 | $ | 3,021,820 | ||||
2.65%, 01/27/20 | 5,000 | 5,008,350 | ||||||
2.73%, 02/10/21 (Call 02/10/20), | 7,000 | 7,006,337 | ||||||
2.75%, 06/10/22 (Call 06/10/21), | 5,000 | 5,011,197 | ||||||
2.80%, 06/16/20 | 5,000 | 5,024,361 | ||||||
3.37%, 04/21/21, | 2,000 | 2,032,120 | ||||||
MUFG Bank Ltd., 2.85%, 09/08/21(d) | 1,400 | 1,423,345 | ||||||
MUFG Union Bank N.A., 3.15%, 04/01/22 | 4,000 | 4,111,492 | ||||||
National Australia Bank Ltd. | 2,000 | 2,004,710 | ||||||
2.60%, 01/10/20, | 1,200 | 1,201,357 | ||||||
National Australia Bank Ltd./New York | 5,000 | 4,999,978 | ||||||
2.13%, 05/22/20 | 5,000 | 5,006,686 | ||||||
2.50%, 01/12/21 | 1,000 | 1,006,230 | ||||||
2.63%, 07/23/20 | 3,000 | 3,017,127 | ||||||
3.70%, 11/04/21 | 3,035 | 3,135,913 | ||||||
National Bank of Canada, 2.20%, 11/02/20 | 2,000 | 2,006,481 | ||||||
Nordea Bank Abp | 4,450 | 4,454,833 | ||||||
2.25%, 05/27/21(d) | 4,000 | 4,021,620 | ||||||
2.50%, 09/17/20(d) | 4,000 | 4,023,464 | ||||||
2.59%, 05/29/20, | 2,000 | 2,004,632 | ||||||
Royal Bank of Canada, 2.25%, 07/22/20, | 2,000 | 2,004,589 | ||||||
Santander UK PLC | 13,024 | 13,047,119 | ||||||
2.38%, 03/16/20 | 2,000 | 2,002,495 | ||||||
2.59%, 11/03/20, | 500 | 500,045 | ||||||
Skandinaviska Enskilda Banken AB | 4,640 | 4,644,309 | ||||||
2.45%, 05/27/20(d) | 3,000 | 3,007,212 | ||||||
2.55%, 05/17/21, | 4,000 | 4,011,040 | ||||||
2.86%, 12/01/20, | 5,000 | 5,028,150 | ||||||
3.05%, 03/25/22(d) | 3,000 | 3,062,826 | ||||||
Societe Generale SA | 5,460 | 5,488,010 | ||||||
2.63%, 09/16/20(d) | 2,000 | 2,012,890 | ||||||
5.20%, 04/15/21(d) | 3,571 | 3,729,203 | ||||||
Sumitomo Mitsui Banking Corp. | 1,000 | 1,000,933 | ||||||
2.51%, 01/17/20 | 2,498 | 2,500,745 | ||||||
Sumitomo Mitsui Banking Corp./New York, 2.41%, 04/06/21, (3 mo. LIBOR US + 0.355%)(a) | 5,000 | 5,003,127 | ||||||
Suncorp-Metway Ltd. | 2,000 | 2,000,832 | ||||||
2.38%, 11/09/20(d) | 1,250 | 1,256,114 | ||||||
2.47%, 10/19/20, | 7,000 | 6,999,981 | ||||||
Svenska Handelsbanken AB | 3,000 | 3,017,808 | ||||||
2.46%, 09/08/20, (3 mo. LIBOR US + 0.360%)(a) | 745 | 746,527 | ||||||
Toronto-Dominion Bank (The), 3.00%, 06/11/20 | 1,000 | 1,006,943 | ||||||
UBS AG/London | 2,300 | 2,302,698 | ||||||
2.45%, 12/01/20 (Call 11/01/20)(d) | 14,200 | 14,256,516 | ||||||
UBS AG/Stamford CT 2.35%, 03/26/20 | 2,500 | 2,504,500 |
SCHEDULE OF INVESTMENTS | 27 |
Schedule of Investments (continued) October 31, 2019 | iShares® Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
4.88%, 08/04/20 | $ | 1,000 | $ | 1,022,604 | ||||
United Overseas Bank Ltd., 2.41%, 04/23/21, | 2,000 | 2,002,513 | ||||||
Wells Fargo & Co. | 1,000 | 1,005,028 | ||||||
3.47%, 03/04/21, | 5,000 | 5,069,100 | ||||||
Series N, 2.15%, 01/30/20 | 3,462 | 3,464,178 | ||||||
Wells Fargo Bank N.A. | 2,000 | 2,004,764 | ||||||
2.43%, 07/23/21 (Call 07/23/20), | 5,000 | 5,007,861 | ||||||
2.46%, 10/22/21 (Call 09/21/21), | 2,000 | 2,007,318 | ||||||
2.53%, 05/21/21 (Call 05/21/20), | 5,000 | 5,002,971 | ||||||
2.80%, 09/09/22 (Call 09/09/21), | 15,000 | 15,054,284 | ||||||
3.33%, 07/23/21 (Call 07/23/20)(b) | 2,000 | 2,018,166 | ||||||
Westpac Banking Corp. | 3,000 | 3,004,229 | ||||||
2.60%, 11/23/20 | 9,001 | 9,072,883 | ||||||
3.05%, 05/15/20 | 5,000 | 5,031,523 | ||||||
|
| |||||||
600,598,806 | ||||||||
Biotechnology — 0.8% | ||||||||
Gilead Sciences Inc., 2.55%, 09/01/20 | 18,000 | 18,098,867 | ||||||
|
| |||||||
Chemicals — 0.1% | ||||||||
Air Liquide Finance SA, 1.75%, 09/27/21 | 3,000 | 2,988,334 | ||||||
|
| |||||||
Computers — 0.7% | ||||||||
Apple Inc., 1.80%, 11/13/19 | 1,500 | 1,500,036 | ||||||
International Business Machines Corp., | 14,000 | 14,064,302 | ||||||
|
| |||||||
15,564,338 | ||||||||
Diversified Financial Services — 0.5% | ||||||||
American Express Co., 2.20%, 10/30/20 | 5,661 | 5,677,388 | ||||||
American Express Credit Corp. | 3,000 | 3,003,503 | ||||||
2.86%, 05/26/20 (Call 04/25/20), | 2,906 | 2,915,618 | ||||||
|
| |||||||
11,596,509 | ||||||||
Electric — 1.3% | ||||||||
Electricite de France SA, 2.35%, 10/13/20 | 12,100 | 12,142,364 | ||||||
NextEra Energy Capital Holdings Inc. | 5,925 | 5,970,224 | ||||||
2.55%, 09/28/20, | 6,500 | 6,507,774 | ||||||
2.90%, 04/01/22 | 2,260 | 2,306,950 | ||||||
Series H, 3.34%, 09/01/20 | 1,795 | 1,814,014 | ||||||
|
| |||||||
28,741,326 | ||||||||
Health Care - Services — 0.2% | ||||||||
UnitedHealth Group Inc., 1.95%, 10/15/20 | 5,000 | 5,008,602 | ||||||
|
| |||||||
Household Products & Wares — 0.4% | ||||||||
Church & Dwight Co. Inc., 2.45%, 12/15/19 | 9,500 | 9,500,264 | ||||||
|
| |||||||
Insurance — 0.2% | ||||||||
Jackson National Life Global Funding, | 5,000 | 5,007,387 | ||||||
|
|
Security | Par (000) | Value | ||||||
Internet — 1.0% | ||||||||
Alibaba Group Holding Ltd., 2.50%, 11/28/19 | $ | 1,750 | $ | 1,750,000 | ||||
Tencent Holdings Ltd., 2.88%, 02/11/20(d) | 19,355 | 19,375,565 | ||||||
|
| |||||||
21,125,565 | ||||||||
Machinery — 1.3% | ||||||||
Caterpillar Financial Services Corp. | 1,000 | 1,000,844 | ||||||
2.38%, 08/26/20, (3 mo. LIBOR US + 0.250%)(a) | 9,000 | 9,013,199 | ||||||
2.41%, 03/08/21, (3 mo. LIBOR US + 0.300%)(a) | 7,000 | 7,005,881 | ||||||
2.90%, 03/15/21 | 1,500 | 1,519,607 | ||||||
Series I, 2.65%, 05/17/21 | 3,810 | 3,856,315 | ||||||
John Deere Capital Corp. | 3,000 | 3,002,759 | ||||||
2.37%, 03/12/21, (3 mo. LIBOR US + 0.240%)(a) | 1,000 | 1,000,904 | ||||||
2.43%, 07/10/20, (3 mo. LIBOR US + 0.420%)(a) | 3,000 | 3,007,129 | ||||||
|
| |||||||
29,406,638 | ||||||||
Manufacturing — 0.3% | ||||||||
3M Co., 3.00%, 09/14/21 (Call 08/14/21) | 1,075 | 1,096,610 | ||||||
Siemens Financieringsmaatschappij NV | 3,000 | 3,006,420 | ||||||
2.46%, 03/16/20, | 3,000 | 3,004,859 | ||||||
|
| |||||||
7,107,889 | ||||||||
Media — 0.6% | ||||||||
Comcast Corp. | 2,000 | 2,005,020 | ||||||
3.30%, 10/01/20 | 1,610 | 1,631,611 | ||||||
NBCUniversal Enterprise Inc., 2.50%, 04/01/21, | 5,000 | 5,016,800 | ||||||
Walt Disney Co. (The), 2.36%, 09/01/21, | 4,320 | 4,332,010 | ||||||
|
| |||||||
12,985,441 | ||||||||
Oil & Gas — 0.5% | ||||||||
BP Capital Markets PLC, 2.38%, 11/24/20, | 10,000 | 10,018,403 | ||||||
|
| |||||||
Pharmaceuticals — 0.1% | ||||||||
Pfizer Inc., 3.00%, 09/15/21 | 1,670 | 1,709,453 | ||||||
|
| |||||||
Pipelines — 0.6% | ||||||||
Enbridge Inc., 2.41%, 01/10/20, | 2,875 | 2,876,552 | ||||||
Enterprise Products Operating LLC, | 5,716 | 5,786,796 | ||||||
TransCanada PipeLines Ltd. | 1,500 | 1,500,080 | ||||||
3.80%, 10/01/20 | 1,886 | 1,916,940 | ||||||
|
| |||||||
12,080,368 | ||||||||
Retail — 0.7% | ||||||||
Walgreens Boots Alliance Inc., 2.70%, 11/18/19 | 15,348 | 15,351,259 | ||||||
|
| |||||||
Semiconductors — 0.9% | ||||||||
Lam Research Corp. | 9,000 | 9,017,732 | ||||||
2.80%, 06/15/21 (Call 05/15/21) | 9,905 | 10,047,506 | ||||||
|
| |||||||
19,065,238 | ||||||||
Telecommunications — 1.3% | ||||||||
BellSouth LLC, 4.27%, 04/26/21 (Call 04/26/20)(d) | 5,000 | 5,004,600 | ||||||
Verizon Communications Inc., 2.70%, 05/22/20, | 23,000 | 23,063,384 | ||||||
|
| |||||||
28,067,984 |
28 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Transportation — 0.7% | ||||||||
Ryder System Inc. | $ | 4,186 | $ | 4,197,831 | ||||
2.50%, 05/11/20 (Call 04/11/20) | 5,500 | 5,511,307 | ||||||
2.88%, 06/01/22 (Call 05/01/22) | 4,899 | 4,987,250 | ||||||
|
| |||||||
14,696,388 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 46.4% |
| 1,018,572,673 | ||||||
|
| |||||||
Repurchase Agreements | ||||||||
Bank of America Securities Inc., 2.20%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $17,001,039, collateralized bynon-agency mortgage-backed security, 3.17% to 8.02%, due 07/25/24 to 04/25/30, par and fair value of $22,272,095 and $20,400,000, respectively)(a)(e) | 17,000 | 17,000,000 | ||||||
Bank of America Securities Inc., 2.50%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $7,000,486, collateralized by non-agency mortgage-backed security, 6.50%, due 07/27/37, par and fair value of $23,172,791 and $8,050,000, | 7,000 | 7,000,000 | ||||||
Barclays Bank PLC, 2.13%, 11/01/19 | 10,000 | 10,000,000 | ||||||
Barclays Bank PLC, 2.22%, 11/01/19 | 10,000 | 10,000,000 | ||||||
Barclays Bank PLC, 2.30%, 11/01/19 | 6,000 | 6,000,000 | ||||||
Barclays Bank PLC, 2.40%, 11/01/19 | 16,000 | 16,000,000 | ||||||
Citigroup Global Markets Inc., 2.21%, 11/01/19 | 8,000 | 8,000,000 | ||||||
Citigroup Global Markets Inc., 2.28%, 11/01/19 | 12,000 | 12,000,000 | ||||||
Credit Suisse Securities (USA) LLC, 2.23%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $5,000,310, collateralized bynon-agency mortgage-backed security, 5.02%, due 08/01/57, par and fair value of $11,254,902 and $5,750,000, | 5,000 | 5,000,000 |
Security | Par (000) | Value | ||||||
Credit Suisse Securities (USA) LLC, 2.36%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $15,000,985, collateralized bynon-agency mortgage-backed security, 4.63% to 6.75%, due 02/01/24 to 12/08/46, par and fair value of $14,487,721 and $15,768,499, respectively)(a)(e) | $ | 15,000 | $ | 15,000,000 | ||||
JP Morgan Securities, 2.10%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $15,000,875, collateralized bynon-agency mortgage-backed security, 3.08% to 8.13%, due 02/15/21 to 12/31/49, par and fair value of $15,845,972 and $16,276,600, respectively)(a)(e) | 15,000 | 15,000,000 | ||||||
JP Morgan Securities, 2.30%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $7,000,448, collateralized bynon-agency mortgage-backed security, 0.00%, due 03/22/32, par and fair value of $7,490,001 and $7,490,001, respectively)(a)(e) | 7,000 | 7,000,000 | ||||||
JP Morgan Securities, 2.46%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $7,000,478, collateralized bynon-agency mortgage-backed security, 4.75% to 10.00%, due 05/15/22 to 12/31/49, par and fair value of $9,859,128 and $7,902,619, | 7,000 | 7,000,000 | ||||||
Mizuho Securities USA Inc., 2.34%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $6,000,389, collateralized bynon-agency mortgage-backed security, 3.53%, due 05/01/24, par and fair value of $6,900,001 and $6,879,828, respectively)(a)(e) | 6,000 | 6,000,000 | ||||||
Wells Fargo Securities, 2.30%, 11/01/19 | 15,000 | 15,000,000 | ||||||
Wells Fargo Securities, 2.35%, 11/01/19 (Purchased on 10/31/19 to be repurchased at $7,000,457, collateralized bynon-agency mortgage-backed security, 0.00%, due 12/03/19, par and fair value of $7,386,935 and $7,350,000, respectively)(a)(e) | 7,000 | 7,000,000 | ||||||
|
| |||||||
Total Repurchase Agreements — 7.4% | 163,000,000 | |||||||
|
| |||||||
Total Investments in Securities — 100.5% | 2,207,310,452 | |||||||
Other Assets, Less Liabilities — (0.5)% | (11,919,304 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 2,195,391,148 | ||||||
|
|
(a) | Variable or floating rate security. Rate shown is the rate in effect as ofperiod-end. |
(b) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. |
(c) | Rates are discount rates or a range of discount rates at the time of purchase. |
(d) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(e) | Maturity date represents next reset date. |
SCHEDULE OF INVESTMENTS | 29 |
Schedule of Investments (continued) October 31, 2019 | iShares® Ultra Short-Term Bond ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at 10/31/18 | Net Activity | Shares Held at 10/31/19 | Value at | Net Realized | Change in Unrealized Appreciation | |||||||||||||||||||||||
Affiliated Issuer | (000) | (000) | (000) | 10/31/19 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,193 | (2,193 | ) | — | $ | — | $ | 47,532 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Asset-Backed Securities | $ | — | $ | 44,890,737 | $ | — | $ | 44,890,737 | ||||||||
Certificates of Deposit | — | 434,882,080 | — | 434,882,080 | ||||||||||||
Commercial Paper | — | 545,964,962 | — | 545,964,962 | ||||||||||||
Corporate Bonds & Notes | — | 1,018,572,673 | — | 1,018,572,673 | ||||||||||||
Repurchase Agreements | — | 163,000,000 | — | 163,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 2,207,310,452 | $ | — | $ | 2,207,310,452 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
30 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statements of Assets and Liabilities
October 31, 2019
| iShares Short Maturity Bond ETF | | iShares Short Maturity Municipal Bond ETF | | iShares Ultra Short-Term Bond ETF | |||||||
ASSETS | ||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||
Unaffiliated(b) | $ | 6,004,813,625 | $ | 208,885,203 | $ | 2,044,310,452 | ||||||
Affiliated(c) | 140,517,739 | 60,272 | — | |||||||||
Repurchase agreements, at value — Unaffiliated(d) | 30,000,000 | — | 163,000,000 | |||||||||
Cash | 4,452 | 825 | 373,859 | |||||||||
Foreign currency, at value(e) | 407,638 | — | — | |||||||||
Receivables: | ||||||||||||
Investments sold | 85,995,733 | — | — | |||||||||
Securities lending income — Affiliated | 11,791 | — | — | |||||||||
Capital shares sold | — | — | 15,127,757 | |||||||||
Dividends | 997,504 | 7,390 | 1,575,420 | |||||||||
Interest | 26,437,348 | 1,623,533 | 6,130,185 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 6,289,185,830 | 210,577,223 | 2,230,517,673 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Collateral on securities loaned, at value | 25,559,035 | — | — | |||||||||
Payables: | ||||||||||||
Investments purchased | 2,019,859 | — | 34,980,595 | |||||||||
Investment advisory fees | 1,348,251 | 44,747 | 145,930 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 28,927,145 | 44,747 | 35,126,525 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 6,260,258,685 | $ | 210,532,476 | $ | 2,195,391,148 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 6,229,995,048 | $ | 209,872,154 | $ | 2,186,522,098 | ||||||
Accumulated earnings | 30,263,637 | 660,322 | 8,869,050 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 6,260,258,685 | $ | 210,532,476 | $ | 2,195,391,148 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 124,300,000 | 4,200,000 | 43,550,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 50.36 | $ | 50.13 | $ | 50.41 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Securities loaned, at value | $ | 24,808,812 | $ | — | $ | — | ||||||
(b) Investments, at cost — Unaffiliated | $ | 5,988,221,907 | $ | 208,374,565 | $ | 2,039,273,105 | ||||||
(c) Investments, at cost — Affiliated | $ | 140,505,328 | $ | 60,272 | $ | — | ||||||
(d) Repurchase agreements, at cost — Unaffiliated | $ | 30,000,000 | $ | — | $ | 163,000,000 | ||||||
(e) Foreign currency, at cost | $ | 409,753 | $ | — | $ | — |
See notes to financial statements.
FINANCIAL STATEMENTS | 31 |
Year Ended October 31, 2019
| iShares Short Maturity Bond ETF |
| | iShares Short Maturity Municipal Bond ETF | | iShares Ultra Short-Term Bond ETF | ||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Affiliated | $ | 5,647,286 | $ | 18,755 | $ | 47,532 | ||||||
Interest — Unaffiliated | 177,897,335 | 3,280,687 | 37,944,108 | |||||||||
Securities lending income — Affiliated — net | 289,373 | — | — | |||||||||
Other income — Unaffiliated | 32,000 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 183,865,994 | 3,299,442 | 37,991,640 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees | 15,445,292 | 439,207 | 1,078,536 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 15,445,292 | 439,207 | 1,078,536 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 168,420,702 | 2,860,235 | 36,913,104 | |||||||||
|
|
|
|
|
| |||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | 7,260,490 | (33,334 | ) | 44,667 | ||||||||
Investments — Affiliated | 23,972 | — | — | |||||||||
Forward foreign currency exchange contracts | (6,568,126 | ) | — | — | ||||||||
Foreign currency transactions | 118,278 | — | — | |||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 834,614 | (33,334 | ) | 44,667 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated | 27,053,938 | 777,657 | 5,425,140 | |||||||||
Investments — Affiliated | 8,065 | — | — | |||||||||
Foreign currency translations | (2,924 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) | 27,059,079 | 777,657 | 5,425,140 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 27,893,693 | 744,323 | 5,469,807 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 196,314,395 | $ | 3,604,558 | $ | 42,382,911 | ||||||
|
|
|
|
|
|
See notes to financial statements.
32 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets
iShares Short Maturity Bond ETF | iShares Short Maturity Municipal Bond ETF | |||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 168,420,702 | $ | 81,567,141 | $ | 2,860,235 | $ | 953,580 | ||||||||
Net realized gain (loss) | 834,614 | (1,136,651 | ) | (33,334 | ) | (53,123 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 27,059,079 | (14,317,397 | ) | 777,657 | (224,736 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 196,314,395 | 66,113,093 | 3,604,558 | 675,721 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (164,081,359 | ) | (74,611,511 | ) | (2,725,134 | ) | (856,151 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 1,246,207,753 | 2,080,578,493 | 82,541,776 | 74,785,143 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | ||||||||||||||||
Total increase in net assets | 1,278,440,789 | 2,072,080,075 | 83,421,200 | 74,604,713 | ||||||||||||
Beginning of year | 4,981,817,896 | 2,909,737,821 | 127,111,276 | 52,506,563 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 6,260,258,685 | $ | 4,981,817,896 | $ | 210,532,476 | $ | 127,111,276 | ||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 33 |
Statements of Changes in Net Assets (continued)
iShares Ultra Short-Term Bond ETF | ||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||
| ||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 36,913,104 | $ | 7,171,945 | ||||
Net realized gain (loss) | 44,667 | (2,431 | ) | |||||
Net change in unrealized appreciation (depreciation) | 5,425,140 | (491,071 | ) | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 42,382,911 | 6,678,443 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (34,253,107 | ) | (6,139,081 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 1,585,467,333 | 413,322,400 | ||||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase in net assets | 1,593,597,137 | 413,861,762 | ||||||
Beginning of year | 601,794,011 | 187,932,249 | ||||||
|
|
|
| |||||
End of year | $ | 2,195,391,148 | $ | 601,794,011 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
34 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
(For a share outstanding throughout each period)
iShares Short Maturity Bond ETF | ||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Year Ended 10/31/15 | ||||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of year | $ | 50.12 | $ | 50.25 | $ | 50.17 | $ | 50.04 | $ | 50.15 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 1.37 | 1.11 | 0.74 | 0.50 | 0.44 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.21 | (0.23 | ) | 0.04 | 0.14 | (0.13 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase from investment operations | 1.58 | 0.88 | 0.78 | 0.64 | 0.31 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (1.34 | ) | (1.01 | ) | (0.70 | ) | (0.51 | ) | (0.42 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (1.34 | ) | (1.01 | ) | (0.70 | ) | (0.51 | ) | (0.42 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 50.36 | $ | 50.12 | $ | 50.25 | $ | 50.17 | $ | 50.04 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 3.19 | % | 1.78 | % | 1.57 | % | 1.28 | % | 0.62 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 2.73 | % | 2.21 | % | 1.47 | % | 1.01 | % | 0.87 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 6,260,259 | $ | 4,981,818 | $ | 2,909,738 | $ | 2,021,893 | $ | 1,781,306 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(d) | 58 | %(e) | 48 | % | 56 | % | 79 | % | 23 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Portfolio turnover rate excludesin-kind transactions. |
(e) | Portfolio turnover rate includesto-be-announced (TBA) transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 35 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Short Maturity Municipal Bond ETF | ||||||||||||||||||||
| Year Ended 10/31/19 | | Year Ended 10/31/18 | | Year Ended 10/31/17 | | Year Ended 10/31/16 | | Period From 03/03/15 to 10/31/15 | (a)
| ||||||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 49.85 | $ | 50.01 | $ | 50.02 | $ | 50.07 | $ | 50.00 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(b) | 0.81 | 0.68 | 0.49 | 0.39 | 0.20 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | 0.26 | (0.21 | ) | (0.03 | ) | (0.04 | ) | 0.04 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase from investment operations | 1.07 | 0.47 | 0.46 | 0.35 | 0.24 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(d) | ||||||||||||||||||||
From net investment income | (0.79 | ) | (0.63 | ) | (0.47 | ) | (0.40 | ) | (0.17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.79 | ) | (0.63 | ) | (0.47 | ) | (0.40 | ) | (0.17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 50.13 | $ | 49.85 | $ | 50.01 | $ | 50.02 | $ | 50.07 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 2.16 | % | 0.95 | % | 0.93 | % | 0.69 | % | 0.48 | %(e) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | %(f) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | %(f) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 1.63 | % | 1.35 | % | 0.99 | % | 0.79 | % | 0.59 | %(f) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 210,532 | $ | 127,111 | $ | 52,507 | $ | 35,012 | $ | 35,049 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(g) | 170 | % | 221 | % | 163 | % | 100 | % | 184 | %(e) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
36 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Ultra Short-Term Bond ETF | ||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Year Ended 10/31/15 | ||||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of year | $ | 50.15 | $ | 50.12 | $ | 50.04 | $ | 49.97 | $ | 50.08 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 1.38 | 1.16 | 0.71 | 0.47 | 0.24 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.23 | (0.16 | ) | 0.02 | (0.02 | ) | (0.07 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase from investment operations | 1.61 | 1.00 | 0.73 | 0.45 | 0.17 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (1.35 | ) | (0.97 | ) | (0.65 | ) | (0.38 | ) | (0.24 | ) | ||||||||||
From net realized gain | — | — | — | — | (0.04 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (1.35 | ) | (0.97 | ) | (0.65 | ) | (0.38 | ) | (0.28 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 50.41 | $ | 50.15 | $ | 50.12 | $ | 50.04 | $ | 49.97 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 3.25 | % | 2.02 | % | 1.47 | % | 0.90 | % | 0.32 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.08 | % | 0.08 | % | 0.09 | % | 0.18 | % | 0.18 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 2.74 | % | 2.33 | % | 1.43 | % | 0.93 | % | 0.47 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 2,195,391 | $ | 601,794 | $ | 187,932 | $ | 25,018 | $ | 12,493 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(d) | 16 | % | 32 | % | 11 | % | 139 | % | 41 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 37 |
1. | ORGANIZATION |
iShares U.S. ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
Short Maturity Bond | Diversified | (a) | ||
Short Maturity Municipal Bond | Diversified | |||
Ultra Short-Term Bond | Diversified |
(a) | The Fund’s classification changed fromnon-diversified to diversified during the reporting period. |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities, andpayment-in-kind interest income, if any, are recognized daily on the accrual basis. Dividend income and capital gain distributions, if any, are recognized on theex-dividend date, net of any foreign taxes withheld at source.
Foreign CurrencyTranslation:The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes:The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of October 31, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on theex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Recent Accounting Standards:In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization on Purchase Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Funds.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
38 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Fixed-income investments are valued using the last available bid price or current market quotations provided by independent dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions. |
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
• | Repurchase agreements are valued at amortized cost, which approximates market value. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
TBA Commitments:A fund may purchase mortgage pass-through securities on a when-issued orto-be-announced (“TBA”) basis, with payment and delivery scheduled for a future date. The underlying mortgage pools to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. A fund could be exposed to possible risk if there are adverse market actions, expenses or delays in connection with the TBA transactions, or if the counterparty fails to complete the transaction.
TBA Roll Transactions: A fund may enter into a TBA agreement, sell the obligation to purchase the pools stipulated in the TBA agreement prior to the stipulated settlement date and enter into a new TBA agreement for future delivery of pools of mortgage pass-through securities (a “TBA roll”). TBA rolls are treated as purchase and sale transactions in which the fund realizes gains and losses. A fund’s use of TBA rolls may cause the fund to experience higher portfolio turnover and higher transactions costs. TBA rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon purchase price of those securities.
Repurchase Agreements:Repurchase agreements are commitments to purchase 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 upon
NOTESTO FINANCIAL STATEMENTS | 39 |
Notes to Financial Statements (continued)
repurchase amount. Pursuant to the custodial undertaking associated with atri-party repurchase arrangement, an unaffiliated third party custodian maintains accounts to hold collateral for a fund and its counterparties. Typically, a fund and counterparty are not permitted to sell,re-pledge or use the collateral absent a default by the counterparty or the fund. In the event the counterparty defaults and the fair value of the collateral declines, a fund could experience losses, delays and costs in liquidating the collateral.
Repurchase agreements are entered into by a fund under Master Repurchase Agreements (each, an “MRA”). The MRA permits the fund, 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 open repurchase agreements as of October 31, 2019 which are subject to offset under an MRA:
Market Value of Repurchase | Cash Collateral | Non-Cash Collateral | ||||||||||||||
iShares ETF and Counterparty | Agreements | Received | Received | (a) | Net Amount | |||||||||||
Short Maturity Bond | ||||||||||||||||
Mizuho Securities USA Inc. | $ | 30,000,000 | $ | — | $ | 30,000,000 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ultra Short-Term Bond | ||||||||||||||||
Bank of America Securities Inc. | $ | 24,000,000 | $ | — | $ | 24,000,000 | $ | — | ||||||||
Barclays Bank PLC | 42,000,000 | — | 42,000,000 | — | ||||||||||||
Citigroup Global Markets Inc | 20,000,000 | — | 20,000,000 | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 20,000,000 | — | 20,000,000 | — | ||||||||||||
JP Morgan Securities LLC | 29,000,000 | — | 29,000,000 | — | ||||||||||||
Mizuho Securities USA Inc. | 6,000,000 | — | 6,000,000 | — | ||||||||||||
Wells Fargo Securities LLC | 22,000,000 | — | 22,000,000 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 163,000,000 | $ | — | $ | 163,000,000 | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received in excess of the market value of repurchase agreements is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of October 31, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-cash collateral received cannot be sold,re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of October 31, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
40 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of October 31, 2019:
Market Value of | Cash Collateral | Non-Cash Collateral | ||||||||||||||
iShares ETF and Counterparty | Securities on Loan | Received | (a) | Received | Net Amount | |||||||||||
Short Maturity Bond | ||||||||||||||||
BofA Securities, Inc. | $ | 700,978 | $ | 700,978 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 1,695,653 | 1,695,653 | — | — | ||||||||||||
Goldman Sachs & Co. | 1,173,666 | 1,173,666 | — | — | ||||||||||||
JPMorgan Securities LLC | 11,676,886 | 11,676,886 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 4,433,629 | 4,433,629 | — | — | ||||||||||||
MUFG Securities Americas Inc. | 5,092,920 | 5,092,920 | — | — | ||||||||||||
Wells Fargo Securities LLC | 35,080 | 35,080 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 24,808,812 | $ | 24,808,812 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Forward Foreign Currency Exchange Contracts:The iShares Short Maturity Bond ETF uses forward foreign currency exchange contracts to hedge the currency exposure ofnon-U.S. dollar-denominated securities held in its portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are tradedover-the-counter (“OTC”) and not on an organized exchange.
The contract ismarked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed.Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the fund.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
Short Maturity Bond | 0.25 | % | ||
Short Maturity Municipal Bond | 0.25 | |||
Ultra Short-Term Bond | 0.08 |
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
NOTESTO FINANCIAL STATEMENTS | 41 |
Notes to Financial Statements (continued)
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2019, each Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold, each Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its statement of operations. For the year ended October 31, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
Short Maturity Bond | $ | 104,376 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions:Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule17a-7.
For the year ended October 31, 2019, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
Short Maturity Municipal Bond | $ | 11,706,049 | $ | 48,470,066 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
7. | PURCHASES AND SALES |
For the year ended October 31, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
iShares ETF | Purchases | Sales | Purchases | Sales | ||||||||||||
Short Maturity Bond | $ | 809,767,752 | $ | 822,662,167 | $ | 3,247,659,108 | $ | 2,133,343,875 | ||||||||
Short Maturity Municipal Bond | — | — | 343,607,598 | 262,236,780 | ||||||||||||
Ultra Short-Term Bond | — | — | 769,982,824 | 85,148,146 |
There were noin-kind transactions for the year ended October 31, 2019.
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
42 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2019, the following permanent differences attributable to the use of equalization, were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings | ||||||
Short Maturity Bond | $ | 119,817 | $ | (119,817 | ) | |||
Ultra Short-Term Bond | 21,271 | (21,271 | ) |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 10/31/19 | Year Ended 10/31/18 | ||||||
Short Maturity Bond | ||||||||
Ordinary income | $ | 164,081,359 | $ | 74,611,511 | ||||
|
|
|
| |||||
Short Maturity Municipal Bond | ||||||||
Tax-exempt income | $ | 2,725,134 | $ | 856,052 | ||||
Ordinary income | — | 99 | ||||||
|
|
|
| |||||
$ | 2,725,134 | $ | 856,151 | |||||
|
|
|
| |||||
Ultra Short-Term Bond | ||||||||
Ordinary income | $ | 34,253,107 | $ | 6,139,081 | ||||
|
|
|
|
As of October 31, 2019, the tax components of accumulated net earnings (losses) were as follows:
Undistributed | Undistributed | Non-expiring Capital Loss | Net Unrealized | |||||||||||||||||
iShares ETF | Ordinary Income | Tax Exempt Income | Carryforwards | (a) | Gains (Losses) | (b) | Total | |||||||||||||
Short Maturity Bond | $ | 13,690,131 | $ | — | $ | — | $ | 16,573,506 | $ | 30,263,637 | ||||||||||
Short Maturity Municipal Bond | — | 274,878 | (125,178 | ) | 510,622 | 660,322 | ||||||||||||||
Ultra Short-Term Bond | 3,831,703 | — | — | 5,037,347 | 8,869,050 |
(a) | Amounts available to offset future realized capital gains. |
(b) | The difference between book-basis andtax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales. |
For the year ended October 31, 2019, the Funds utilized the following amounts of their capital loss carryforwards as follows:
iShares ETF | Utilized | |||
Short Maturity Bond | $ | 1,172,993 | ||
Ultra Short-Term Bond | 23,259 |
As of October 31, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Short Maturity Bond | $ | 6,158,755,743 | $ | 19,029,719 | $ | (2,454,098 | ) | $ | 16,575,621 | |||||||
Short Maturity Municipal Bond | 208,434,853 | 573,364 | (62,742 | ) | 510,622 | |||||||||||
Ultra Short-Term Bond | 2,202,273,105 | 5,106,066 | (68,719 | ) | 5,037,347 |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market
NOTESTO FINANCIAL STATEMENTS | 43 |
Notes to Financial Statements (continued)
conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Short Maturity Bond | ||||||||||||||||
Shares sold | 58,100,000 | $ | 2,911,443,708 | 58,650,000 | $ | 2,940,323,176 | ||||||||||
Shares redeemed | (33,200,000 | ) | (1,665,235,955 | ) | (17,150,000 | ) | (859,744,683 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 24,900,000 | $ | 1,246,207,753 | 41,500,000 | $ | 2,080,578,493 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Short Maturity Municipal Bond | ||||||||||||||||
Shares sold | 2,100,000 | $ | 105,050,323 | 1,900,000 | $ | 94,724,355 | ||||||||||
Shares redeemed | (450,000 | ) | (22,508,547 | ) | (400,000 | ) | (19,939,212 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 1,650,000 | $ | 82,541,776 | 1,500,000 | $ | 74,785,143 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Ultra Short-Term Bond | ||||||||||||||||
Shares sold | 33,600,000 | $ | 1,688,678,880 | 9,300,000 | $ | 465,896,705 | ||||||||||
Shares redeemed | (2,050,000 | ) | (103,211,547 | ) | (1,050,000 | ) | (52,574,305 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 31,550,000 | $ | 1,585,467,333 | 8,250,000 | $ | 413,322,400 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
44 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision. The appeal was fully briefed on January 18, 2019, and a hearing on Plaintiffs’ appeal took place on November 19, 2019.
12. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 45 |
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of iShares U.S. ETF Trust and
Shareholders of iShares Short Maturity Bond ETF,
iShares Short Maturity Municipal Bond ETF and iShares Ultra Short-Term Bond ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Short Maturity Bond ETF, iShares Short Maturity Municipal Bond ETF and iShares Ultra Short-Term Bond ETF (three of the funds constituting iShares U.S. ETF Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2019, the related statements of operations for the year ended October 31, 2019, the statements of changes in net assets for each of the two years in the period ended October 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2019 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
46 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Important Tax Information (unaudited)
For the fiscal year ended October 31, 2019, the Funds hereby designate the following maximum amounts allowable as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations:
iShares ETF | Interest-Related Dividends | |||
Short Maturity Bond | $ | 123,795,558 | ||
Short Maturity Municipal Bond | 2,860,235 | |||
Ultra Short-Term Bond | 29,624,933 |
The Funds hereby designate the following amounts of distributions from direct federal obligation interest for the fiscal year ended October 31, 2019:
iShares ETF | Federal Obligation Interest | |||
Short Maturity Bond | $ | 16,078,015 | ||
Ultra Short-Term Bond | 23,701 |
The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
The Fund hereby designates the following amount of distributions from net investment income as exempt-interest dividends for the fiscal year ended October 31, 2019:
iShares ETF | Exempt-Interest Dividends | |||
Short Maturity Municipal Bond | 100.00 | % |
The following distribution amounts are hereby designated for the fiscal year ended October 31, 2019:
iShares ETF | 20% Rate Long-Term Capital Gain Dividends | |||
Short Maturity Bond | $ | 119,817 | ||
Ultra Short-Term Bond | 6,724 |
IMPORTANT TAX INFORMATION | 47 |
Board Review and Approval of Investment Advisory Contract
I. iShares Short Maturity Bond ETF, iShares Short Maturity Municipal Bond ETF and iShares Ultra Short-Term Bond ETF (the “Funds”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Funds, including investment management; fund accounting; administrative and shareholder services; oversight of the Funds’ service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Funds:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising each Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.
The Board also noted that the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds. In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that each Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for each Fund manages its portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that each Fund generally performed in line with expectations relative to its respective reference benchmark.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Nature, Extent and Quality of Services Provided by BFA:Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June17-19, 2019 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA
48 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s estimated profit margin as reflected in the Funds’ profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Funds increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Funds did not provide for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with similar investment strategies or investment mandates as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Funds, including in terms of the types of services and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as a publicly traded ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, both direct and indirect, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 49 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive aForm 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year | % 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(a) | $ | 1.336503 | $ | — | $ | 0.001746 | $ | 1.338249 | 100 | % | — | % | 0 | %(b) | 100 | % | ||||||||||||||||
Short Maturity Municipal Bond | 0.790675 | — | — | 0.790675 | 100 | — | — | 100 | ||||||||||||||||||||||||
Ultra Short-Term Bond(a) | 1.331849 | — | 0.013215 | 1.345064 | 99 | — | 1 | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
(b) | Rounds to less than 1%. |
Premium/Discount Information
The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest ask on the primary securities exchange on which shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the value of its portfolio holdings. The Market Price of a 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 the 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.
Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at iShares.com.
The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendarquarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.
iShares Short Maturity Bond ETF
Period Covered: January 01, 2014 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 0.0% and Less than 0.5% | 1,129 | 78.08 | % | |||||
At NAV | 103 | 7.12 | ||||||
Less than 0.0% and Greater than –0.5% | 214 | 14.80 | ||||||
|
|
|
| |||||
1,446 | 100.00 | % | ||||||
|
|
|
|
50 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Supplemental Information (unaudited) (continued)
iShares Short Maturity Municipal Bond ETF
Period Covered: March 05, 2015 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 0.0% and Less than 0.5% | 711 | 61.72 | % | |||||
At NAV | 38 | 3.30 | ||||||
Less than 0.0% and Greater than –0.5% | 403 | 34.98 | ||||||
|
|
|
| |||||
1,152 | 100.00 | % | ||||||
|
|
|
|
iShares Ultra Short-Term Bond ETF
Period Covered: January 01, 2014 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.0% and Less than 2.5% | 1 | 0.07 | % | |||||
Greater than 0.0% and Less than 0.5% | 1,029 | 71.16 | ||||||
At NAV | 61 | 4.22 | ||||||
Less than 0.0% and Greater than –0.5% | 355 | 24.55 | ||||||
|
|
|
| |||||
1,446 | 100.00 | % | ||||||
|
|
|
|
SUPPLEMENTAL INFORMATION | 51 |
Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. 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 (the “BlackRock-advised Funds”) are organized into one complex ofopen-end equity, multi-asset, index and money market funds (the “BlackRock Multi-Asset Complex”), one complex ofclosed-end funds andopen-endnon-index fixed-income funds (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares Trust, and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 352 funds as of October 31, 2019. With the exception of Robert S. Kapito, Salim Ramji, Charles Park and Neal J. Andrews, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji, Mr. Park and Mr. Andrews is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free1-800-iShares(1-800-474-2737).
Interested Trustees
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Robert S. Kapito(a)(62) |
Trustee (since 2011). |
President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). |
Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b)(49) |
Trustee (since 2019). |
Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). |
Director of iShares, Inc. (since 2019); Trustee of iShares Trust (since 2019). |
(a) | Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
(b) | Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Trustees
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Cecilia H. Herbert (70) |
Trustee (since 2011); Independent Board Chair (since 2016). |
Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Technology and Quality Committees of Stanford Health Care (since 2016); Member of the Audit Committee (since 2018) and Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); 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. |
Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (63) |
Trustee (since 2015); Risk Committee Chair (since 2016). |
Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). |
Director of iShares, Inc. (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016) and Director of The Hanover Insurance Group, Inc. (since (2016). | |||
Richard L. Fagnani (64) |
Trustee (since 2017); Audit Committee Chair (since 2019). |
Partner, KPMG LLP (2002-2016). |
Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). |
52 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information (continued)
Independent Trustees(continued)
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
John E. Kerrigan (64) |
Trustee (since 2011); Nominating and Governance and Equity Plus Committee Chairs (since 2019). |
Chief Investment Officer, Santa Clara University (since 2002). |
Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005). | |||
Drew E. Lawton (60) |
Trustee (since 2017); 15(c) Committee Chair (since 2017). |
Senior Managing Director of New York Life Insurance Company (2010-2015). |
Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). | |||
John E. Martinez (58) |
Trustee (since 2011); Securities Lending Committee Chair (since 2019). |
Director of Real Estate Equity Exchange, Inc. (since 2005). |
Director of iShares, Inc. (since 2003); Trustee of iShares Trust (since 2003); Director of Cloudera Foundation (since 2017); Director of Reading Partners (2012-2016). | |||
Madhav V. Rajan (55) |
Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). |
Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). |
Director of iShares, Inc. (since 2011); Trustee of iShares Trust (since 2011). |
Officers
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | ||
Armando Senra (48) |
President (since 2019). |
Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and LATAM iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006). | ||
Neal J. Andrews (53) |
Treasurer and Chief Financial Officer (since 2019). |
Managing Director, BlackRock, Inc. (since 2006); Chief Financial Officer of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2007). | ||
Charles Park (52) |
Chief Compliance Officer (since 2011). |
Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||
Deepa Damre (44) |
Secretary (since 2019). |
Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||
Scott Radell (50) |
Executive Vice President (since 2012). |
Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||
Alan Mason (58) |
Executive Vice President (since 2016). |
Managing Director, BlackRock, Inc. (since 2009). | ||
Marybeth Leithead (56) |
Executive Vice President (since 2019). |
Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016). |
TRUSTEEAND OFFICER INFORMATION | 53 |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The iShares Funds’ FormsN-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
54 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Fixed Income | ||
AGM | Assured Guaranty Municipal Corp. | |
AMBAC | Ambac Assurance Corp. | |
BAM | Build America Mutual Assurance Co. | |
CLO | Collateralized Loan Obligation | |
COP | Certificates of Participation | |
CR | Custodian Receipt | |
GO | General Obligation | |
GOL | General Obligation Limited | |
LIBOR | London Interbank Offered Rate | |
NPFGC | National Public Finance Guarantee Corp. | |
Q-SBLF | Qualified School Bond Loan Fund | |
RB | Revenue Bond | |
SAP | Subject to Appropriations | |
SAW | State Aid Withholding | |
ST | Special Tax | |
TA | Tax Allocation |
GLOSSARYOF TERMS USEDINTHIS REPORT | 55 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2019 BlackRock, Inc. All rights reserved.iSHARES andBLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-1008-1019
![]() |
![]() | OCTOBER 31, 2019 |
2019 Annual Report |
iShares U.S. ETF Trust
· | iShares Inflation Hedged Corporate Bond ETF | LQDI | Cboe BZX |
· | iShares Interest Rate Hedged Corporate Bond ETF | LQDH | NYSE Arca |
· | iShares Interest Rate Hedged High Yield Bond ETF | HYGH | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
Page | ||||
3 | ||||
4 | ||||
10 | ||||
10 | ||||
11 | ||||
Financial Statements | ||||
20 | ||||
21 | ||||
22 | ||||
24 | ||||
27 | ||||
34 | ||||
35 | ||||
36 | ||||
40 | ||||
42 | ||||
44 | ||||
45 | ||||
46 |
iShares U.S. ETF Trust
U.S. Bond Market Overview
The U.S. bond market advanced for the 12 months ended October 31, 2019 (“reporting period”). The Bloomberg Barclays U.S. Aggregate Bond Index, a broad measure of U.S. fixed-income performance, returned 11.51%.
U.S. economic growth declined to an annualized rate of approximately 1.9% in the third quarter of 2019. As measured by the consumer price index, the year-over-year U.S. inflation rate, which has remained subdued throughout the current economic expansion, decreased to 1.8% in October 2019.
The delayed impact of higher interest rates early in the reporting period and the trade dispute between the U.S. and China ultimately weighed on economic growth. Specifically, growth in the U.S. manufacturing and industrial sectors slowed to a standstill, while business spending contracted due to modest earnings growth and trade uncertainty. On the upside, consumer spending remained relatively resilient, which kept the U.S. economy afloat. The lowest unemployment rate in almost 50 years led to rising wages, while increased borrowing also supported consumer spending. Similarly, government spending increased, financed by a large increase in borrowing.
In response to deteriorating economic conditions, the U.S. Federal Reserve Bank (“Fed”) shifted to a more accommodative monetary policy starting in January 2019. After raising short-term interest rates in December 2018, the Fed reversed course and lowered them three times in 2019. The Fed also supported short-term lending markets to alleviate liquidity concerns.
Long-term bond yields declined more than short-term yields, reflecting lower inflation expectations and solid demand for the relative stability of U.S. Treasuries amid economic uncertainty. Consequently, the U.S. Treasury yield curve (a graphical representation of U.S. Treasury yields at different maturities) flattened before briefly inverting in August 2019, as 10-year Treasury yields dipped below one-year Treasury yields. An inverted yield curve has preceded each of the last seven economic recessions, so the yield curve inversion during the reporting period exacerbated investors’ concerns about the potential for an impending recession.
Lower interest rates drove gains in the value of U.S. Treasury securities, which are typically more sensitive to changes in interest rates than other types of bonds with similar maturities. U.S. Treasury securities with longer maturities posted significantly higher returns. Deficit spending led the U.S. government to maintain a high level of Treasury bond issuance, which increased supply, but demand from international investors seeking relatively higher U.S. yields helped support prices. Despite the decline in inflation, U.S. Treasury inflation-protected securities, which have even greater price sensitivity than nominal Treasuries at comparable maturities, also posted a solid return.
Corporate bonds benefited from more accommodative interest rate policies, generally posting strong returns. Declining yields meant that investors in search of income increasingly sought out corporate debt, which typically yields more than government debt. Demand for investment-grade corporate bonds was particularly high, as investors sought substitutes for low-yielding sovereign debt. Narrow spreads (which measure the difference between yields for corporate bonds and lower-risk Treasury bonds) indicated that investors were confident in the financial resilience of U.S. corporations despite a slowing economy. Corporate bond issuance declined sharply early in the reporting period as interest rates rose and investors became concerned about an economic slowdown. However, issuance increased later in the reporting period when interest rates declined and the economy stabilized.
Among securitized bonds, commercial mortgage backed securities (“CMBSs”) posted the strongest performance amid a decline in issuance of new CMBS debt. Bonds backed by individual home mortgages advanced, despite a rise in refinancing due to lower mortgage rates. Other asset-backed bonds, including those backed by auto loans and credit card debt, also gained despite an increase in default rates, as low unemployment supported consumer spending.
MARKET OVERVIEW | 3 |
Fund Summary as of October 31, 2019 | iShares® Inflation Hedged Corporate Bond ETF |
Investment Objective
TheiShares Inflation Hedged Corporate Bond ETF(the “Fund”) seeks to mitigate the inflation 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. 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. The Fund attempts to mitigate the inflation risk of the underlying fund by holding inflation swaps.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | 12.26 | % | 7.12 | % | 12.26 | % | 10.76 | % | ||||||||||||
Fund Market | 12.80 | 7.53 | 12.80 | 11.38 | ||||||||||||||||
Markit iBoxx® USD Liquid Investment Grade Inflation Hedged Index | 12.58 | 7.43 | 12.58 | 11.17 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 5/8/18. The first day of secondary market trading was 5/10/18.
The Markit iBoxx® USD Liquid Investment Grade Inflation Hedged Index is an unmanaged index that is designed to reflect the inflation hedged performance of U.S. dollar-denominated investment-grade corporate debt.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||
$ 1,000.00 | $ 1,053.50 | $ 0.26 | $ 1,000.00 | $ 1,025.00 | $ 0.26 | 0.05 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
4 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Inflation Hedged Corporate Bond ETF |
Portfolio Management Commentary
The Fund posted a positive return for the reporting period, despite the negative impact of its inflation hedge. Investment-grade corporate bonds advanced significantly amid strong demand from investors seeking higher yields than those available from government securities, with relatively low risk.
On an unhedged basis, financial bonds were the largest contributors to the Fund’s return. Bonds issued by banks advanced, as strong balance sheets gave investors confidence that banks would be relatively resilient in the case of an economic downturn. Issuance of new bonds was relatively low, which helped to reduce yields, as supply was insufficient to meet investor demand for top-rated debt.
Consumer non-cyclical companies were also significant contributors to the Fund’s performance, particularly in the pharmaceuticals, food products, and beverages industries. Pharmaceutical company debt gained as drug makers issued bonds to raise capital for merger and acquisition activity and to expand efforts to innovate new products. Food and beverage company bonds also advanced amid growing consumer spending on online food delivery. Communications companies also made a substantial contribution, especially in the wirelines industry. As large telecommunications companies took steps to reduce debt, their bond prices surged.
Declining inflation during the reporting period meant negative returns from hedging activity, which was the largest detractor from the Fund’s return. Typically, increasing inflation rates reduce the price of existing bonds, meaning a rise in inflation detracts from bond fund performance. Conversely, lower inflation usually increases bond prices. An inflation hedged fund attempts to avoid these fluctuations by offsetting inflation risk, primarily using inflation hedging instruments, such as inflation swaps.
The Fund’s inflation hedge seeks near-zero inflation sensitivity. Consequently, the Fund’s return was minimally affected by fluctuations in inflation during the reporting period. With inflation sensitivity hedged, the Fund fluctuated based on direct exposure to the yield premium of investment-grade corporate bonds, independent of declining inflation.
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | Percent of Total Investments(a) | |
Aaa | 3.0% | |
Aa | 7.5 | |
A | 39.7 | |
Baa | 45.9 | |
Ba | 3.2 | |
Not Rated | 0.7 |
ALLOCATION BY MATURITY
Maturity | Percent of Total Investments(a) | |
1-5 Years | 19.2% | |
5-10 Years | 39.0 | |
10-15 Years | 3.6 | |
15-20 Years | 10.3 | |
More than 20 Years | 27.9 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Fund Summary as of October 31, 2019 | iShares® Interest Rate Hedged Corporate Bond ETF |
Investment Objective
TheiShares 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. 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. The Fund attempts to mitigate the interest rate risk of the underlying fund by holding short positions in U.S. Treasury futures or interest rate swaps.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 2.63 | % | 2.26 | % | 1.88 | % | 2.63 | % | 11.82 | % | 10.65 | % | ||||||||||||||||
Fund Market | 2.85 | 2.33 | 1.91 | 2.85 | 12.19 | 10.81 | ||||||||||||||||||||||
Markit iBoxx® USD Liquid Investment Grade Interest Rate Hedged Swaps Index(a) | 2.23 | 2.87 | 2.50 | 2.23 | 15.21 | 14.32 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSETVALUE)
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 Swaps Index is an unmanaged index that is designed to reflect the duration hedged performance of U.S. dollar-denominated investment-grade corporate debt.
(a) | The Markit iBoxx® USD Liquid Investment Grade Interest Rate Hedged Swaps Index reflects the performance of the Markit iBoxx USD Liquid Investment Grade Interest Rate Hedged Index through June 16, 2016 and beginning June 17, 2016 reflects the performance of the Markit iBoxx® USD Liquid Investment Grade Interest Rate Hedged Swaps Index. |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||
$ 1,000.00 | $ 1,007.70 | $ 0.51 | $ 1,000.00 | $ 1,024.70 | $ 0.51 | 0.10 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
6 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Interest Rate Hedged Corporate Bond ETF |
Portfolio Management Commentary
The Fund posted a positive return for the reporting period, despite the substantial negative impact of the interest rate hedge. Investment-grade corporate bonds advanced significantly amid strong demand from investors seeking higher yields than those available from government securities, with relatively low risk.
On an unhedged basis, financial bonds were the largest contributors to the Fund’s return. Bonds issued by banks advanced, as strong balance sheets gave investors confidence that banks would be relatively resilient in the case of an economic downturn. Issuance of new bonds was relatively low, which helped to reduce yields, as supply was insufficient to meet investor demand for top-rated debt.
Consumer non-cyclical companies were also significant contributors to the Fund’s performance, particularly in the pharmaceuticals, food products, and beverages industries. Pharmaceutical company debt gained as drug makers issued bonds to raise capital for merger and acquisition activity and to expand efforts to innovate new products. Food and beverage company bonds also advanced amid growing consumer spending on online food delivery services. Communications companies also made a substantial contribution, especially in the wirelines industry. As large telecommunications companies took steps to reduce debt, their bond prices surged.
Declining interest rates during the reporting period meant negative returns from hedging activity, which was the largest detractor from the Fund’s return. Typically, increasing interest rates reduce the price of existing bonds, meaning a rise in interest rates detracts from bond fund performance. Conversely, falling interest rates usually increase bond prices. An interest rate hedged fund attempts to avoid these fluctuations by offsetting interest rate risk, primarily using interest rate swaps and Treasury futures contracts.
The Fund’s interest rate hedge seeks near-zero interest rate sensitivity. Consequently, the Fund’s return was minimally affected by interest rate fluctuations during the reporting period. With interest rate sensitivity hedged, the Fund fluctuated based on direct exposure to the yield premium of investment-grade corporate bonds, independent of falling interest rates.
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY CREDIT QUALITY
| ||
Moody’s Credit Rating* | Percent of Total Investments(a) | |
Aaa | 3.0% | |
Aa | 7.5 | |
A | 39.7 | |
Baa | 45.9 | |
Ba | 3.2 | |
Not Rated | 0.7 |
ALLOCATION BY MATURITY
| ||
Maturity | Percent of Total Investments(a) | |
1-5 Years | 19.2% | |
5-10 Years | 39.0 | |
10-15 Years | 3.6 | |
15-20 Years | 10.3 | |
More than 20 Years | 27.9 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 7 |
Fund Summary as of October 31, 2019 | iShares® Interest Rate Hedged High Yield Bond ETF |
Investment Objective
TheiShares 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. 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. The Fund attempts to mitigate the interest rate risk of the underlying fund by holding short positions in U.S. Treasury futures or interest rate swaps.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 3.00 | % | 3.32 | % | 2.85 | % | 3.00 | % | 17.71 | % | 16.50 | % | ||||||||||||||||
Fund Market | 2.98 | 3.32 | 2.86 | 2.98 | 17.77 | 16.56 | ||||||||||||||||||||||
Markit iBoxx® USD Liquid High Yield Interest Rate Hedged Swaps Index | 3.51 | 3.85 | 3.45 | 3.51 | 20.77 | 20.20 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
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 Swaps Index is an unmanaged index that reflects the duration hedged performance of U.S. dollar-denominated high yield corporate debt.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a)(b) | | Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a)(b) | | Annualized Expense Ratio |
(a) | ||||||||||
$ | 1,000.00 | $ | 999.40 | $ | 0.25 | $ | 1,000.00 | $ | 1,025.00 | $ | 0.26 | 0.05 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
8 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Interest Rate Hedged High Yield Bond ETF |
Portfolio Management Commentary
The Fund advanced modestly during the reporting period. High-yield corporate bonds posted solid gains, benefiting from falling interest rates and investors’ search for yield. However, these gains were partially offset by the negative impact of the interest rate hedge, which detracted from the Fund’s return.
Corporate bonds issued by companies in the U.S. contributed the majority of the Fund’s return. The supply of high-yield bonds increased, rising to its highest level in three years during June 2019, as lower interest rates and strong investor demand drove significant new issuance. High-yield credit spreads, or yield premiums relative to U.S. Treasuries, were relatively unchanged despite considerable volatility during the reporting period. Credit spreads widened dramatically in late 2018, then narrowed in early 2019 as the economic outlook improved.
From a sector perspective, the largest contributors to the Fund’s performance were high-yield corporate bonds issued by communications companies, as cable and satellite providers increased their profit margins. Consumer-oriented companies, both cyclical and non-cyclical, benefited from continued economic growth, which supported consumer spending. Financial bonds also added to the Fund’s performance, as many financial institutions reported strong profit growth.
Declining interest rates during the reporting period meant negative returns from hedging activity, which was the largest detractor from the Fund’s return. Typically, increasing interest rates reduce the price of existing bonds, meaning a rise in interest rates detracts from bond fund performance. Conversely, falling interest rates usually increase bond prices. An interest rate hedged fund attempts to avoid these fluctuations by offsetting interest rate risk, primarily using interest rate swaps and Treasury futures contracts.
The Fund’s interest rate hedge seeks near-zero interest rate sensitivity. Consequently, the Fund’s return was minimally affected by interest rate fluctuations during the reporting period. With interest rate sensitivity hedged, the Fund fluctuated based on direct exposure to the yield premium of high-yield corporate bonds, independent of declining interest rates.
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | Percent of Total Investments(a) | |
Baa | 1.0% | |
Ba | 47.5 | |
B | 38.2 | |
Caa | 11.4 | |
Ca | 0.7 | |
C | 0.2 | |
Not Rated | 1.0 |
ALLOCATION BY MATURITY
Maturity | Percent of Total Investments(a) | |
0-1 Year | 0.3% | |
1-5 Years | 41.0 | |
5-10 Years | 56.5 | |
10-15 Years | 1.8 | |
More than 20 Years | 0.4 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 9 |
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 iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
10 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
October 31, 2019 | iShares® Inflation Hedged Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies |
| |||||||
Exchange-Traded Funds — 94.8% | ||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF(a) | 58,664 | $ | 7,491,979 | |||||
|
| |||||||
Total Investment Companies — 94.8% |
| 7,491,979 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 1.5% | ||||||||
BlackRock Cash Funds: Treasury, | 118,000 | 118,000 | ||||||
|
| |||||||
Total Short-Term Investments — 1.5% |
| 118,000 | ||||||
|
| |||||||
Total Investments in Securities — 96.3% |
| 7,609,979 | ||||||
Other Assets, Less Liabilities — 3.7% |
| 288,362 | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 7,898,341 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 |
| | Shares Purchased |
| | Shares Sold |
| | Shares Held at 10/31/19 |
| | Value at 10/31/19 |
| Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | 0 | (b) | — | — | $ | — | $ | 2,474 | (c) | $ | (6 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 25,445 | 92,555 | (b) | — | 118,000 | 118,000 | 3,648 | — | — | |||||||||||||||||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 84,841 | — | (26,177 | ) | 58,664 | 7,491,979 | 297,552 | 47,425 | 970,539 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 7,609,979 | $ | 303,674 | $ | 47,419 | $ | 970,539 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
10-Year U.S. Treasury Note | 5 | 12/19/19 | $ | 652 | $ | (6,613 | ) | |||||||||
10-Year Ultra Long U.S. Treasury Bond | 4 | 12/19/19 | 568 | (9,100 | ) | |||||||||||
|
| |||||||||||||||
(15,713 | ) | |||||||||||||||
|
| |||||||||||||||
Short Contract | ||||||||||||||||
2-Year U.S. Treasury Note | (2 | ) | 12/31/19 | (431 | ) | (252 | ) | |||||||||
|
| |||||||||||||||
$ | (15,965 | ) | ||||||||||||||
|
|
SCHEDULES OF INVESTMENTS | 11 |
Schedule of Investments (continued) October 31, 2019 | iShares® Inflation Hedged Corporate Bond ETF |
Centrally Cleared Inflation Swaps
| ||||||||||||||||||||||||||||||
Upfront | ||||||||||||||||||||||||||||||
Notional | Premium | Unrealized | ||||||||||||||||||||||||||||
Paid by the Fund | Received by the Fund | Termination | Amount | Paid | Appreciation | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Rate | Frequency | Reference | Frequency | Date | (000) | Value | (Received) | (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
2.21% | At Termination | U.S. CPI Urban Consumers NSA | At Termination | 05/15/21 | $ | (1,092 | ) | $ | (18,432 | ) | $ | 11 | $ | (18,443 | ) | |||||||||||||||
2.29 | At Termination | U.S. CPI Urban Consumers NSA | At Termination | 05/15/23 | (3,084 | ) | (105,774 | ) | (14,053 | ) | (91,721 | ) | ||||||||||||||||||
2.37 | At Termination | U.S. CPI Urban Consumers NSA | At Termination | 05/15/28 | (2,454 | ) | (168,109 | ) | 57 | (168,166 | ) | |||||||||||||||||||
2.19 | At Termination | U.S. CPI Urban Consumers NSA | At Termination | 12/03/28 | (2,233 | ) | (108,370 | ) | (45,448 | ) | (62,922 | ) | ||||||||||||||||||
2.40 | At Termination | U.S. CPI Urban Consumers NSA | At Termination | 05/15/48 | (352 | ) | (71,264 | ) | (28,483 | ) | (42,781 | ) | ||||||||||||||||||
1.83 | At Termination | U.S. CPI Urban Consumers NSA | At Termination | 10/18/49 | (97 | ) | (261 | ) | 1,705 | (1,966 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$ | (472,210 | ) | $ | (86,211 | ) | $ | (385,999 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps
Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
Centrally Cleared Swaps(a) | $1,773 | $(87,984 | ) | $— | $(385,999 | ) |
(a) | Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts. |
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| ||||||||||||
Interest Rate Contracts | Inflation Linked Contracts | Total | ||||||||||
| ||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||
Futures contracts | ||||||||||||
Unrealized depreciation on futures contracts(a) | $ | 15,965 | $ | — | $ | 15,965 | ||||||
Swaps — centrally cleared | ||||||||||||
Unrealized depreciation on centrally cleared swaps(a) | $ | — | $ | 385,999 | $ | 385,999 | ||||||
|
|
|
|
|
| |||||||
$ | 15,965 | $ | 385,999 | $ | 401,964 | |||||||
|
|
|
|
|
|
(a) | Net cumulative appreciation (depreciation) on futures contracts and centrally cleared inflation swaps contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
12 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Inflation Hedged Corporate Bond ETF |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||||||||||
Interest Rate Contracts | Inflation Linked Contracts | Total | ||||||||||
| ||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||
Futures contracts | $ | 75,672 | $ | — | $ | 75,672 | ||||||
Swaps | — | (124,725 | ) | (124,725 | ) | |||||||
|
|
|
|
|
| |||||||
$ | 75,672 | $ | (124,725 | ) | $ | (49,053 | ) | |||||
|
|
|
|
|
| |||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Futures contracts | $ | (17,375 | ) | $ | — | $ | (17,375 | ) | ||||
Swaps | — | (304,786 | ) | (304,786 | ) | |||||||
|
|
|
|
|
| |||||||
$ | (17,375 | ) | $ | (304,786 | ) | $ | (322,161 | ) | ||||
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 728,217 | ||
Average notional value of contracts — short | $ | (86,241 | ) | |
Inflation swaps: | ||||
Average notional value — pays fixed rate | $ | 9,633,000 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 7,491,979 | $ | — | $ | — | $ | 7,491,979 | ||||||||
Money Market Funds | 118,000 | — | — | 118,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 7,609,979 | $ | — | $ | — | $ | 7,609,979 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (15,965 | ) | $ | — | $ | — | $ | (15,965 | ) | ||||||
Swaps | — | (385,999 | ) | — | (385,999 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | (15,965 | ) | $ | (385,999 | ) | $ | — | $ | (401,964 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 13 |
Schedule of Investments October 31, 2019 | iShares® Interest Rate Hedged Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.4% | ||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF(a)(b)(c) | 982,545 | $ | 125,480,822 | |||||
|
| |||||||
Total Investment Companies — 99.4% |
| 125,480,822 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.9% | ||||||||
BlackRock Cash Funds: Institutional, | 1,294,451 | 1,295,098 | ||||||
BlackRock Cash Funds: Treasury, | 2,321,000 | 2,321,000 | ||||||
|
| |||||||
3,616,098 | ||||||||
|
| |||||||
Total Short-Term Investments — 2.9% |
| 3,616,098 | ||||||
|
| |||||||
Total Investments in Securities — 102.3% |
| 129,096,920 | ||||||
Other Assets, Less Liabilities — (2.3)% |
| (2,865,316 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 126,231,604 | |||||
|
|
(a) | Affiliate of the Fund. |
(b) | All or a portion of the security has been pledged in connection with outstanding centrally cleared swaps. |
(c) | All or a portion of this security is on loan. |
(d) | Annualized 7-day yield as of period-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 10/31/19 | | | Value at 10/31/19 | | Income | | Net Realized | | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 78,148,424 | — | (76,853,973 | )(b) | 1,294,451 | $ | 1,295,098 | $ | 83,353 | (c) | $ | 1,892 | $ | (3,611 | ) | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 2,972,028 | — | (651,028 | )(b) | 2,321,000 | 2,321,000 | 51,603 | — | — | |||||||||||||||||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 1,824,319 | 905,215 | (1,746,989 | ) | 982,545 | 125,480,822 | 6,667,576 | 5,488,079 | 18,149,886 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 129,096,920 | $ | 6,802,532 | $ | 5,489,971 | $ | 18,146,275 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Centrally Cleared Interest Rate Swaps
| ||||||||||||||||||||||||||||||
Paid by the Fund | Received by the Fund | Effective | Termination | Notional Amount |
| Upfront Paid | Unrealized Appreciation | |||||||||||||||||||||||
Rate | Frequency | Rate(a) | Frequency | Date | Date | Value | (Received) | (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
1.17% | Semi-annual | 1.90% | Quarterly | N/A | 12/08/21 | $ | (15,178 | ) | $ | 121,937 | $ | 260,425 | $ | (138,488 | ) | |||||||||||||||
2.38 | Semi-annual | 1.90 | Quarterly | N/A | 01/12/23 | (20,678 | ) | (567,008 | ) | 189,274 | (756,282 | ) | ||||||||||||||||||
2.46 | Semi-annual | 1.90 | Quarterly | N/A | 01/12/25 | (13,537 | ) | (659,754 | ) | 421,024 | (1,080,778 | ) | ||||||||||||||||||
1.44 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/26 | (26,494 | ) | 156,377 | 2,186,879 | (2,030,502 | ) | |||||||||||||||||||
3.25 | Semi-annual | 1.90 | Quarterly | N/A | 10/18/28 | (12,812 | ) | (1,804,443 | ) | (967,546 | ) | (836,897 | ) | |||||||||||||||||
2.34 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/36 | (19,180 | ) | (1,742,083 | ) | 967,857 | (2,709,940 | ) | ||||||||||||||||||
2.41 | Semi-annual | 1.90 | Quarterly | N/A | 06/19/37 | (644 | ) | (66,639 | ) | (47,673 | ) | (18,966 | ) |
14 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged Corporate Bond ETF |
Centrally Cleared Interest Rate Swaps (continued)
| ||||||||||||||||||||||||||||||
Paid by the Fund | Received by the Fund | Effective | Termination | Notional Amount |
| Upfront Paid | Unrealized Appreciation | |||||||||||||||||||||||
Rate | Frequency | Rate(a) | Frequency | Date | Date | Value | (Received) | (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
1.77% | Semi-annual | 1.90% | Quarterly | N/A | 12/08/46 | $ | (10,455 | ) | $ | 50,309 | $ | 2,448,283 | $ | (2,397,974 | ) | |||||||||||||||
3.33 | Semi-annual | 1.90 | Quarterly | N/A | 10/24/48 | (4,778 | ) | (1,721,853 | ) | (787,209 | ) | (934,644 | ) | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$ | (6,233,157 | ) | $ | 4,671,314 | $ | (10,904,471 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
(a) | Represents 3-month LIBOR. Rate shown is the rate in effect as of period-end. |
Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps
Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
Centrally Cleared Swaps(a) | $ | 6,473,742 | $ | (1,802,428 | ) | $— | $ | (10,904,471 | ) |
(a) | Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts. |
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| ||||||
Interest Rate Contracts | ||||||
| ||||||
Liabilities — Derivative Financial Instruments | ||||||
Swaps — centrally cleared | ||||||
Unrealized depreciation on centrally cleared swaps(a) | $ | 10,904,471 | ||||
|
|
(a) | Net cumulative appreciation (depreciation) on centrally cleared interest rate swaps contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||||
Interest Rate | ||||||
| ||||||
Net Realized Gain (Loss) from: | ||||||
Swaps | $ | (8,989,660 | ) | |||
|
| |||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||
Swaps | $ | (15,395,395 | ) | |||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Interest rate swaps: | ||||
Average notional value — pays fixed rate | $ | 188,799,200 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
SCHEDULES OF INVESTMENTS | 15 |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged Corporate Bond ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 125,480,822 | $ | — | $ | — | $ | 125,480,822 | ||||||||
Money Market Funds | 3,616,098 | — | — | 3,616,098 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 129,096,920 | $ | — | $ | — | $ | 129,096,920 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Swaps | $ | — | $ | (10,904,471 | ) | $ | — | $ | (10,904,471 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
16 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments October 31, 2019 | iShares® Interest Rate Hedged High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies |
| |||||||
Exchange-Traded Funds — 97.7% | ||||||||
iShares iBoxx $ High Yield Corporate Bond ETF(a)(b) | 1,285,719 | $ | 111,613,267 | |||||
|
| |||||||
Total Investment Companies — 97.7% |
| 111,613,267 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 44.9% | ||||||||
BlackRock Cash Funds: Institutional, | 49,926,142 | 49,951,105 | ||||||
BlackRock Cash Funds: Treasury, | 1,324,000 | 1,324,000 | ||||||
|
| |||||||
51,275,105 | ||||||||
|
| |||||||
Total Short-Term Investments — 44.9% |
| 51,275,105 | ||||||
|
| |||||||
Total Investments in Securities — 142.6% |
| 162,888,372 | ||||||
Other Assets, Less Liabilities — (42.6)% |
| (48,676,787 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 114,211,585 | |||||
|
|
(a) | Affiliate of the Fund. |
(b) | All or a portion of this security is on loan. |
(c) | Annualized 7-day yield as of period-end. |
(d) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 |
| | Shares Purchased |
| | Shares Sold |
| | Shares Held at 10/31/19 |
| | Value at 10/31/19 |
| Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) |
| ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 181,196,855 | — | (131,270,713 | )(b) | 49,926,142 | $ | 49,951,105 | $ | 815,900 | (c) | $ | 16,853 | $ | (1,102 | ) | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 5,837,602 | — | (4,513,602 | )(b) | 1,324,000 | 1,324,000 | 43,924 | — | — | |||||||||||||||||||||||
iShares iBoxx $ High Yield Corporate Bond ETF | 4,801,259 | 581,030 | (4,096,570 | ) | 1,285,719 | 111,613,267 | 12,949,088 | (11,920,362 | ) | 10,675,225 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 162,888,372 | $ | 13,808,912 | $ | (11,903,509 | ) | $ | 10,674,123 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Centrally Cleared Interest Rate Swaps
| ||||||||||||||||||||||||||||
Paid by the Fund | Received by the Fund | Effective | Termination | Notional Amount |
| Upfront Paid | Unrealized Appreciation | |||||||||||||||||||||
Rate | Frequency | Rate(a) | Frequency | Date | Date | (000) | Value | (Received) | (Depreciation) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
2.17% | Semi-annual | 1.90% | Quarterly | N/A | 01/12/20 | $(44,447) | $ | (11,593 | ) | $ | 60,510 | $ | (72,103 | ) | ||||||||||||||
1.82 | Semi-annual | 1.90 | Quarterly | N/A | 12/09/21 | (43,279) | (234,891 | ) | 586,187 | (821,078 | ) | |||||||||||||||||
2.38 | Semi-annual | 1.90 | Quarterly | N/A | 01/12/23 | (11,135) | (305,331 | ) | 182,842 | (488,173 | ) | |||||||||||||||||
2.46 | Semi-annual | 1.90 | Quarterly | N/A | 01/12/25 | (16,944) | (825,802 | ) | 281,815 | (1,107,617 | ) | |||||||||||||||||
1.44 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/26 | (1) | 6 | 57 | (51 | ) | ||||||||||||||||||
2.23 | Semi-annual | 1.90 | Quarterly | N/A | 12/09/26 | (14,275) | (681,986 | ) | 485,432 | (1,167,418 | ) |
SCHEDULES OF INVESTMENTS | 17 |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged High Yield Bond ETF |
Centrally Cleared Interest Rate Swaps (continued)
| ||||||||||||||||||||||||||||||
Paid by the Fund | Received by the Fund | Effective | Termination | Notional Amount |
| Upfront Paid | Unrealized Appreciation | |||||||||||||||||||||||
Rate | Frequency | Rate(a) | Frequency | Date | Date | (000) | Value | (Received) | (Depreciation) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
3.25% | Semi-annual | 1.90% | Quarterly | N/A | 10/18/28 | $ | (500 | ) | $ | (70,420 | ) | $ | (66,268 | ) | $ | (4,152 | ) | |||||||||||||
3.33 | Semi-annual | 1.90 | Quarterly | N/A | 10/24/48 | (10 | ) | (3,604 | ) | (14,517 | ) | 10,913 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$ | (2,133,621 | ) | $ | 1,516,058 | $ | (3,649,679 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
(a) | Represents 3-month LIBOR. Rate shown is the rate in effect as of period-end. |
Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps
Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
Centrally Cleared Swaps(a) | $1,596,843 | $(80,785 | ) | $10,913 | $(3,660,592 | ) |
(a) | Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts. |
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| ||||
Interest Rate Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Swaps — centrally cleared | ||||
Unrealized appreciation on centrally cleared swaps(a) | $ | 10,913 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Swaps — centrally cleared | ||||
Unrealized depreciation on centrally cleared swaps(a) | $ | 3,660,592 | ||
|
|
(a) | Net cumulative appreciation (depreciation) on centrally cleared interest rate swaps contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:
| ||||
Interest Rate Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Swaps | $ | (3,532,993 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Swaps | $ | (10,734,819 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Interest rate swaps: | ||||
Average notional value — pays fixed rate | $ | 243,631,200 | ||
Average notional value — receives fixed rate | $ | 16,800 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
18 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged High Yield Bond ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 111,613,267 | $ | — | $ | — | $ | 111,613,267 | ||||||||
Money Market Funds | 51,275,105 | — | — | 51,275,105 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 162,888,372 | $ | — | $ | — | $ | 162,888,372 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Swaps | $ | — | $ | 10,913 | $ | — | $ | 10,913 | ||||||||
Liabilities | ||||||||||||||||
Swaps | — | (3,660,592 | ) | — | (3,660,592 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | (3,649,679 | ) | $ | — | $ | (3,649,679 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 19 |
Statements of Assets and Liabilities
October 31, 2019
iShares Inflation Hedged Corporate Bond ETF | iShares Interest Rate Hedged Corporate Bond ETF | iShares Interest Rate Hedged High Yield Bond ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||
Affiliated(b) | $ | 7,609,979 | $ | 129,096,920 | $ | 162,888,372 | ||||||
Cash | — | — | 14,432 | |||||||||
Cash pledged: | ||||||||||||
Futures contracts | 14,000 | — | — | |||||||||
Centrally cleared swaps | 346,000 | — | 1,601,000 | |||||||||
Receivables: | ||||||||||||
Securities lending income — Affiliated | 222 | 3,271 | 12,615 | |||||||||
Variation margin on futures contracts | 8,257 | — | — | |||||||||
Dividends | 79 | 2,911 | 1,679 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 7,978,537 | 129,103,102 | 164,518,098 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Bank overdraft | 41,963 | 410,736 | — | |||||||||
Collateral on securities loaned, at value | — | 1,295,000 | 49,945,376 | |||||||||
Payables: | ||||||||||||
Variation margin on centrally cleared swaps | 37,898 | 1,155,060 | 356,100 | |||||||||
Investment advisory fees | 335 | 10,702 | 5,037 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 80,196 | 2,871,498 | 50,306,513 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 7,898,341 | $ | 126,231,604 | $ | 114,211,585 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 7,532,270 | $ | 136,849,657 | $ | 124,607,960 | ||||||
Accumulated earnings (loss) | 366,071 | (10,618,053 | ) | (10,396,375 | ) | |||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 7,898,341 | $ | 126,231,604 | $ | 114,211,585 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 300,000 | 1,350,000 | 1,300,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 26.33 | $ | 93.50 | $ | 87.86 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Securities loaned, at value | $ | — | $ | 1,277,100 | $ | 48,716,383 | ||||||
(b) Investments, at cost — Affiliated | $ | 6,834,805 | $ | 119,783,442 | $ | 164,557,935 |
See notes to financial statements.
20 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Year Ended October 31, 2019
iShares Inflation Hedged Corporate Bond ETF | iShares Interest Rate Hedged Corporate Bond ETF | iShares Interest Rate Hedged High Yield Bond ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Affiliated | $ | 301,200 | $ | 6,719,179 | $ | 12,993,012 | ||||||
Interest — Unaffiliated | 123 | — | — | |||||||||
Securities lending income — Affiliated — net | 2,474 | 83,353 | 815,900 | |||||||||
Other income — Affiliated | 3,785 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 307,582 | 6,802,532 | 13,808,912 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees | 16,844 | 552,536 | 1,430,672 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 16,844 | 552,536 | 1,430,672 | |||||||||
Less: | ||||||||||||
Investment advisory fees waived | (12,633 | ) | (368,358 | ) | (1,320,620 | ) | ||||||
|
|
|
|
|
| |||||||
Total expenses after fees waived | 4,211 | 184,178 | 110,052 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 303,371 | 6,618,354 | 13,698,860 | |||||||||
|
|
|
|
|
| |||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Affiliated | 47,419 | (718,281 | ) | (1,494,147 | ) | |||||||
In-kind redemptions — Affiliated | — | 6,208,252 | (10,409,362 | ) | ||||||||
Futures contracts | 75,672 | — | — | |||||||||
Swaps | (124,725 | ) | (8,989,660 | ) | (3,532,993 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized loss | (1,634 | ) | (3,499,689 | ) | (15,436,502 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Affiliated | 970,539 | 18,146,275 | 10,674,123 | |||||||||
Futures contracts | (17,375 | ) | — | — | ||||||||
Swaps | (304,786 | ) | (15,395,395 | ) | (10,734,819 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) | 648,378 | 2,750,880 | (60,696 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 646,744 | (748,809 | ) | (15,497,198 | ) | |||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 950,115 | $ | 5,869,545 | $ | (1,798,338 | ) | |||||
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 21 |
Statements of Changes in Net Assets
iShares Inflation Hedged Corporate Bond ETF | iShares Interest Rate Hedged Corporate Bond ETF | |||||||||||||||||||||||||||||||
| Year Ended 10/31/19 |
| | Period From 05/08/18 to 10/31/18 | (a)
| | Year Ended 10/31/19 |
| | Year Ended 10/31/18 |
| |||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income | $ | 303,371 | $ | 147,023 | $ | 6,618,354 | $ | 5,410,504 | ||||||||||||||||||||||||
Net realized gain (loss) | (1,634 | ) | (1,530 | ) | (3,499,689 | ) | 5,415,142 | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 648,378 | (275,168 | ) | 2,750,880 | (8,162,611 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 950,115 | (129,675 | ) | 5,869,545 | 2,663,035 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (309,024 | ) | (145,345 | ) | (9,510,227 | ) | (4,886,158 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (2,467,730 | ) | 10,000,000 | (85,657,446 | ) | 140,458,346 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||||||
Total increase (decrease) in net assets | (1,826,639 | ) | 9,724,980 | (89,298,128 | ) | 138,235,223 | ||||||||||||||||||||||||||
Beginning of period | 9,724,980 | — | 215,529,732 | 77,294,509 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
End of period | $ | 7,898,341 | $ | 9,724,980 | $ | 126,231,604 | $ | 215,529,732 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
22 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
iShares Interest Rate Hedged High Yield Bond ETF | ||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||||||
| ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 13,698,860 | $ | 15,216,575 | ||||||||
Net realized gain (loss) | (15,436,502 | ) | 397,355 | |||||||||
Net change in unrealized appreciation (depreciation) | (60,696 | ) | (6,222,064 | ) | ||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (1,798,338 | ) | 9,391,866 | |||||||||
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||
From net investment income | (13,632,971 | ) | (14,460,293 | ) | ||||||||
Return of capital | (46,369 | ) | — | |||||||||
|
|
|
| |||||||||
Decrease in net assets resulting from distributions to shareholders | (13,679,340 | ) | (14,460,293 | ) | ||||||||
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (286,489,209 | ) | 283,576,812 | |||||||||
|
|
|
| |||||||||
NET ASSETS | ||||||||||||
Total increase (decrease) in net assets | (301,966,887 | ) | 278,508,385 | |||||||||
Beginning of year | 416,178,472 | 137,670,087 | ||||||||||
|
|
|
| |||||||||
End of year | $ | 114,211,585 | $ | 416,178,472 | ||||||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 23 |
(For a share outstanding throughout each period)
iShares Inflation Hedged Corporate Bond ETF | ||||||||||||||||
Period From | ||||||||||||||||
Year Ended | 05/08/18 | (a) | ||||||||||||||
10/31/19 | to 10/31/18 | |||||||||||||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 24.31 | $ | 25.00 | ||||||||||||
|
|
|
| |||||||||||||
Net investment income(b) | 0.91 | 0.37 | ||||||||||||||
Net realized and unrealized gain (loss)(c) | 2.01 | (0.70 | ) | |||||||||||||
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 2.92 | (0.33 | ) | |||||||||||||
|
|
|
| |||||||||||||
Distributions(d) | ||||||||||||||||
From net investment income | (0.90 | ) | (0.36 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total distributions | (0.90 | ) | (0.36 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 26.33 | $ | 24.31 | ||||||||||||
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||
Based on net asset value | 12.26 | %(e) | (1.34 | )%(f) | ||||||||||||
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses(g) | 0.20 | % | 0.20 | %(h) | ||||||||||||
|
|
|
| |||||||||||||
Total expenses after fees waived(g) | 0.05 | % | 0.05 | %(h) | ||||||||||||
|
|
|
| |||||||||||||
Net investment income | 3.60 | % | 3.04 | %(h) | ||||||||||||
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 7,898 | $ | 9,725 | ||||||||||||
|
|
|
| |||||||||||||
Portfolio turnover rate(i)(j) | 0 | % | 0 | %(f)(k) | ||||||||||||
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return would have been 12.22%. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(k) | Rounds to less than 1%. |
See notes to financial statements.
24 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Interest Rate Hedged Corporate Bond ETF | ||||||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Year Ended 10/31/15 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 95.79 | $ | 96.62 | $ | 92.49 | $ | 92.13 | $ | 97.95 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income(a) | 3.35 | 3.16 | 2.76 | 2.74 | 2.95 | |||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.97 | ) | (1.16 | ) | 3.73 | (0.29 | ) | (5.82 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) from investment operations | 2.38 | 2.00 | 6.49 | 2.45 | (2.87 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (3.12 | ) | (2.83 | ) | (2.36 | ) | (2.09 | ) | (2.81 | ) | ||||||||||||||
From net realized gain | (1.55 | ) | — | — | — | — | ||||||||||||||||||
Return of capital | — | — | — | — | (0.14 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (4.67 | ) | (2.83 | ) | (2.36 | ) | (2.09 | ) | (2.95 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of year | $ | 93.50 | $ | 95.79 | $ | 96.62 | $ | 92.49 | $ | 92.13 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 2.63 | % | 2.08 | % | 7.11 | % | 2.70 | % | (2.97 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(d) | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total expenses after fees waived(d) | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.11 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income | 3.59 | % | 3.27 | % | 2.91 | % | 3.01 | % | 3.12 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of year (000) | $ | 126,232 | $ | 215,530 | $ | 77,295 | $ | 32,372 | $ | 18,427 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate(e)(f) | 4 | % | 2 | % | 0 | %(g) | 2 | % | 8 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | 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. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
(f) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(g) | Rounds to less than 1%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 25 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Interest Rate Hedged High Yield Bond ETF | ||||||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Year Ended 10/31/15 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 90.47 | $ | 91.78 | $ | 87.42 | $ | 87.66 | $ | 96.93 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income(a) | 5.51 | 4.98 | 4.57 | 4.86 | 4.80 | |||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (2.92 | ) | (1.46 | ) | 4.21 | (0.94 | ) | (9.29 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) from investment operations | 2.59 | 3.52 | 8.78 | 3.92 | (4.49 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Distributions(c) | ||||||||||||||||||||||||
From net investment income | (5.18 | ) | (4.83 | ) | (4.42 | ) | (4.16 | ) | (4.74 | ) | ||||||||||||||
Return of capital | (0.02 | ) | — | — | — | (0.04 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (5.20 | ) | (4.83 | ) | (4.42 | ) | (4.16 | ) | (4.78 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of year | $ | 87.86 | $ | 90.47 | $ | 91.78 | $ | 87.42 | $ | 87.66 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 3.00 | % | 3.93 | % | 10.26 | % | 4.73 | % | (4.77 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(d) | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total expenses after fees waived(d) | 0.05 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.06 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income | 6.22 | % | 5.46 | % | 5.04 | % | 5.78 | % | 5.21 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of year (000) | $ | 114,212 | $ | 416,178 | $ | 137,670 | $ | 30,596 | $ | 48,215 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate(e)(f) | 1 | % | 0 | %(g) | 0 | % | 0 | %(g) | 3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | 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. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
(f) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(g) | Rounds to less than 1%. |
See notes to financial statements.
26 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
1. | ORGANIZATION |
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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
Inflation Hedged Corporate Bond | Non-diversified | |||
Interest Rate Hedged Corporate Bond | Diversified | |||
Interest Rate Hedged High Yield Bond | Diversified |
Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds should be read in conjunction with the Funds’ financial statements.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions from the underlying funds, if any, are recognized on the ex-dividend date. Interest income is accrued daily.
In-kind Redemptions:For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
• | Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach.
NOTESTO FINANCIAL STATEMENTS | 27 |
Notes to Financial Statements (continued)
Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of October 31, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of October 31, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of October 31, 2019:
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received |
| Net Amount | ||||||
| ||||||||||||||||
Interest Rate Hedged Corporate Bond | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 1,277,100 | $ | 1,277,100 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Interest Rate Hedged High Yield Bond | ||||||||||||||||
JPMorgan Securities LLC | $ | 29,757,166 | $ | 29,757,166 | $ | — | $ | — | ||||||||
Wells Fargo Securities LLC | 18,959,217 | 18,959,217 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 48,716,383 | $ | 48,716,383 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
28 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts:U.S. Treasury futures are used by the iShares Inflation Hedged Corporate Bond ETF to mitigate the potential impact of interest rates on the performance of the bonds held by the Fund or its underlying fund. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
Swaps:Swaps are financial agreements to exchange cash flows in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. The iShares Inflation Hedged Corporate Bond ETF uses inflation swaps to mitigate the potential impact of inflation on the performance of the bonds held by the Fund or its underlying fund. The iShares Interest Rate Hedged Corporate Bond ETF and iShares Interest Rate Hedged High Yield Bond ETF use interest rate swaps to mitigate the potential impact of interest rates on the performance of the bonds held by each Fund or its underlying fund.
Swap agreements are privately negotiated in the over-the-counter market and may be entered into as a bilateral contract or centrally cleared (“centrally cleared swaps”). Each Fund enters into centrally cleared swaps.
In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (“CCP”) and the CCP becomes the Funds’ counterparty on the swap. Each Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, each Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the schedule of investments and cash deposited is shown as cash pledged for centrally cleared swaps on the statement of assets and liabilities. The daily change in valuation of centrally cleared swaps is recorded as variation margin receivable or payable on centrally cleared swaps in the statement of assets and liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the statement of operations. Payments received from (paid to) the counterparty are amortized over the term of the contract as a realized gain (loss) in the statement of operations.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
Inflation Hedged Corporate Bond | 0.20 | % | ||
Interest Rate Hedged Corporate Bond | 0.30 | |||
Interest Rate Hedged High Yield Bond | 0.65 |
NOTESTO FINANCIAL STATEMENTS | 29 |
Notes to Financial Statements (continued)
Expense Waivers:A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses is a fund’s total annual operating expenses.
For the iShares Inflation Hedged Corporate Bond ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through February 28, 2023 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares iBoxx $ Investment Grade Corporate Bond ETF (“LQD”), after taking into account any fee waivers by LQD, plus 0.05%.
For the iShares Interest Rate Hedged Corporate Bond ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through February 28, 2022 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in LQD, after taking into account any fee waivers by LQD, plus 0.10%.
For the iShares Interest Rate Hedged High Yield Bond ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through February 28, 2022 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares iBoxx $ High Yield Corporate Bond ETF (“HYG”), after taking into account any fee waivers by HYG, plus 0.05%.
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2019, each Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold, each Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its statement of operations. For the year ended October 31, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
Inflation Hedged Corporate Bond | $ | 856 | ||
Interest Rate Hedged Corporate Bond | 29,074 | |||
Interest Rate Hedged High Yield Bond | 194,174 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
During the year ended October 31, 2019, iShares Inflation Hedged Corporate Bond ETF received a reimbursement of $3,785 from an affiliate, which is included in other income — affiliated in the statement of operations, related to an operating event.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
30 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
7. | PURCHASES AND SALES |
For the year ended October 31, 2019, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Inflation Hedged Corporate Bond | $ | — | $ | 3,047,738 | ||||
Interest Rate Hedged Corporate Bond | 7,148,015 | 25,884,585 | ||||||
Interest Rate Hedged High Yield Bond | 1,714,988 | 12,240,944 |
For the year ended October 31, 2019, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Interest Rate Hedged Corporate Bond | $ | 97,195,533 | $ | 181,359,425 | ||||
Interest Rate Hedged High Yield Bond | 48,189,742 | 329,791,577 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2019, the following permanent differences attributable to distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) | ||||||
Interest Rate Hedged Corporate Bond | $ | 5,808,406 | $ | (5,808,406 | ) | |||
Interest Rate Hedged High Yield Bond | (10,818,234 | ) | 10,818,234 |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 10/31/19 | Period Ended 10/31/18 | ||||||
Inflation Hedged Corporate Bond | ||||||||
Ordinary income | $ | 309,024 | $ | 145,345 | ||||
|
|
|
| |||||
Interest Rate Hedged Corporate Bond | ||||||||
Ordinary income | $ | 6,324,931 | $ | 4,818,154 | ||||
Long-term capital gains | 3,185,296 | 68,004 | ||||||
|
|
|
| |||||
$ | 9,510,227 | $ | 4,886,158 | |||||
|
|
|
| |||||
Interest Rate Hedged High Yield Bond | ||||||||
Ordinary income | $ | 13,632,971 | $ | 14,460,293 | ||||
Return of capital | 46,369 | — | ||||||
|
|
|
| |||||
$ | 13,679,340 | $ | 14,460,293 | |||||
|
|
|
|
As of October 31, 2019, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | | Undistributed Ordinary Income |
| | Non-expiring Capital Loss Carryforwards |
(a) | | Net Unrealized Gains (Losses) | (b) | Total | ||||||
Inflation Hedged Corporate Bond | $ | 872 | $ | (23,976 | ) | $ | 389,175 | $ | 366,071 | |||||||
Interest Rate Hedged Corporate Bond | — | (9,006,965 | ) | (1,611,088 | ) | (10,618,053 | ) | |||||||||
Interest Rate Hedged High Yield Bond | — | (5,070,240 | ) | (5,326,135 | ) | (10,396,375 | ) |
(a) | Amounts available to offset future realized capital gains. |
(b) | 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. |
NOTESTO FINANCIAL STATEMENTS | 31 |
Notes to Financial Statements (continued)
As of October 31, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Inflation Hedged Corporate Bond | $ | 6,834,805 | $ | 775,174 | $ | (385,999 | ) | $ | 389,175 | |||||||
Interest Rate Hedged Corporate Bond | 119,803,537 | 9,293,383 | (10,904,471 | ) | (1,611,088 | ) | ||||||||||
Interest Rate Hedged High Yield Bond | 164,564,828 | 8,354 | (5,334,489 | ) | (5,326,135 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
32 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Transactions in capital shares were as follows:
| ||||||||||||||||
Year Ended 10/31/19 | Period Ended 10/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
Inflation Hedged Corporate Bond | ||||||||||||||||
Shares sold | — | $ | — | 400,000 | $ | 10,000,000 | ||||||||||
Shares redeemed | (100,000 | ) | (2,467,730 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (100,000 | ) | $ | (2,467,730 | ) | 400,000 | $ | 10,000,000 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Interest Rate Hedged Corporate Bond | ||||||||||||||||
Shares sold | 1,100,000 | $ | 101,230,335 | 2,800,000 | $ | 271,201,190 | ||||||||||
Shares redeemed | (2,000,000 | ) | (186,887,781 | ) | (1,350,000 | ) | (130,742,844 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (900,000 | ) | $ | (85,657,446 | ) | 1,450,000 | $ | 140,458,346 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Interest Rate Hedged High Yield Bond | ||||||||||||||||
Shares sold | 550,000 | $ | 49,117,336 | 3,500,000 | $ | 320,022,946 | ||||||||||
Shares redeemed | (3,850,000 | ) | (335,606,545 | ) | (400,000 | ) | (36,446,134 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (3,300,000 | ) | $ | (286,489,209 | ) | 3,100,000 | $ | 283,576,812 | ||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision. The appeal was fully briefed on January 18, 2019, and a hearing on Plaintiffs’ appeal took place on November 19, 2019.
12. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 33 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of iShares U.S. ETF Trust and
Shareholders of iShares Inflation Hedged Corporate Bond ETF,
iShares Interest Rate Hedged High Yield Bond ETF and
iShares Interest Rate Hedged Corporate Bond ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Inflation Hedged Corporate Bond ETF, iShares Interest Rate Hedged High Yield Bond ETF and iShares Interest Rate Hedged Corporate Bond ETF (three of the funds constituting iShares U.S. ETF Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2019, the related statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2019, the results of each of their operations and changes in each of their net assets for each of the periods indicated in the table below and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
iShares Inflation Hedged Corporate Bond ETF: statement of operations for the year ended October 31, 2019 and statement of changes in net assets for the year ended October 31, 2019 and period May 8, 2018 (commencement of operations) to October 31, 2018. |
iShares Interest Rate Hedged High Yield Bond ETF and iShares Interest Rate Hedged Corporate Bond ETF: statements of operations for the year ended October 31, 2019 and statements of changes in net assets for each of the two years in the period ended October 31, 2019. |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
34 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Important Tax Information (unaudited)
For the fiscal year ended October 31, 2019, the Funds hereby designate the following maximum amounts allowable as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations:
iShares ETF | Interest-Related Dividends | |||
Inflation Hedged Corporate Bond | $ | 224,652 | ||
Interest Rate Hedged Corporate Bond | 3,315,332 | |||
Interest Rate Hedged High Yield Bond | 5,719,945 |
The Funds hereby designate the following amounts of distributions from direct federal obligation interest for the fiscal year ended October 31, 2019:
iShares ETF | Federal Obligation Interest | |||
Inflation Hedged Corporate Bond | $ | 1,155 | ||
Interest Rate Hedged Corporate Bond | 51,794 | |||
Interest Rate Hedged High Yield Bond | 22,768 |
The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
The following distribution amounts are hereby designated for the fiscal year ended October 31, 2019:
iShares ETF | 20% Rate Long-Term Capital Gain | |||||||
Interest Rate Hedged Corporate Bond | $ | 3,185,296 |
IMPORTANT TAX INFORMATION | 35 |
Board Review and Approval of Investment Advisory Contract
I. iShares Inflation Hedged Corporate Bond ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, 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 and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Fund:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.
The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with expectations relative to the Fund’s reference benchmark.
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 capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided at the June 17-19, 2019 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
36 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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 and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation 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 similar investment strategy or investment mandate as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board 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 BFAaffiliate participates (including associated commissions) 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 and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the 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 to approve the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 37 |
Board Review and Approval of Investment Advisory Contract (continued)
II. iShares Interest Rate Hedged Corporate Bond ETF and iShares Interest Rate Hedged High Yield Bond ETF (the “Funds”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Funds, including investment management; fund accounting; administrative and shareholder services; oversight of the Funds’ service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Funds:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising each Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.
The Board also noted that the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) for the Funds were higher than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds. In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that each Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for each Fund manages its portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that each Fund generally performed in line with expectations relative to its respective reference benchmark.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Nature, Extent and Quality of Services Provided by BFA:Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 17-19, 2019 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA
38 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s estimated profit margin as reflected in the Funds’ profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Funds increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Funds did not provide for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation 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 similar investment strategies or investment mandates as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Funds, including in terms of the types of services and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as a publicly traded ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, both direct and indirect, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to 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 Funds and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 39 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year | % 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 | ||||||||||||||||||||||||
Inflation Hedged Corporate Bond(a) | $ | 0.893545 | $ | — | $ | 0.007490 | $ | 0.901035 | 99 | % | — | % | 1 | % | 100 | % | ||||||||||||||||
Interest Rate Hedged Corporate Bond(a) | 3.090802 | 1.553803 | 0.028386 | 4.672991 | 66 | 33 | 1 | 100 | ||||||||||||||||||||||||
Interest Rate Hedged High Yield Bond(a) | 5.037555 | — | 0.160202 | 5.197757 | 97 | — | 3 | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Premium/Discount Information
The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest ask on the primary securities exchange on which shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the value of its portfolio holdings. The Market Price of a 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 the 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.
Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at iShares.com.
The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.
iShares Inflation Hedged Corporate Bond ETF
Period Covered: May 10, 2018 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||||||
Greater than 1.0% and Less than 1.5% | 3 | 0.86 | % | |||||||||
Greater than 0.5% and Less than 1.0% | 23 | 6.57 | ||||||||||
Greater than 0.0% and Less than 0.5% | 167 | 47.71 | ||||||||||
At NAV | 2 | 0.57 | ||||||||||
Less than 0.0% and Greater than –0.5% | 140 | 40.00 | ||||||||||
Less than –0.5% and Greater than –1.0% | 14 | 4.00 | ||||||||||
Less than –1.0% and Greater than –1.5% | 1 | 0.29 | ||||||||||
|
|
|
| |||||||||
350 | 100.00 | % | ||||||||||
|
|
|
|
40 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Supplemental Information (unaudited) (continued)
iShares Interest Rate Hedged Corporate Bond ETF
Period Covered: May 28, 2014 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||||||
Greater than 6.0% | 16 | 1.19 | % | |||||||||
Greater than 1.5% and Less than 2.0% | 1 | 0.07 | ||||||||||
Greater than 1.0% and Less than 1.5% | 8 | 0.59 | ||||||||||
Greater than 0.5% and Less than 1.0% | 12 | 0.89 | ||||||||||
Greater than 0.0% and Less than 0.5% | 744 | 55.28 | ||||||||||
At NAV | 60 | 4.46 | ||||||||||
Less than 0.0% and Greater than –0.5% | 499 | 37.07 | ||||||||||
Less than –0.5% and Greater than –1.0% | 4 | 0.30 | ||||||||||
Less than –6.0% | 2 | 0.15 | ||||||||||
|
|
|
| |||||||||
1,346 | 100.00 | % | ||||||||||
|
|
|
|
iShares Interest Rate Hedged High Yield Bond ETF
Period Covered: May 28, 2014 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||||||
Greater than 6.0% | 3 | 0.22 | % | |||||||||
Greater than 2.5% and Less than 3.0% | 1 | 0.07 | ||||||||||
Greater than 1.0% and Less than 1.5% | 7 | 0.52 | ||||||||||
Greater than 0.5% and Less than 1.0% | 24 | 1.78 | ||||||||||
Greater than 0.0% and Less than 0.5% | 642 | 47.71 | ||||||||||
At NAV | 79 | 5.87 | ||||||||||
Less than 0.0% and Greater than –0.5% | 585 | 43.46 | ||||||||||
Less than –0.5% and Greater than –1.0% | 3 | 0.22 | ||||||||||
Less than –1.0% and Greater than –1.5% | 2 | 0.15 | ||||||||||
|
|
|
| |||||||||
1,346 | 100.00 | % | ||||||||||
|
|
|
|
SUPPLEMENTAL INFORMATION | 41 |
Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. 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 (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares Trust, and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 352 funds as of October 31, 2019. With the exception of Robert S. Kapito, Salim Ramji, Charles Park and Neal J. Andrews, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji, Mr. Park and Mr. Andrews is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).
Interested Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Robert S. Kapito(a) (62) | Trustee (since 2011). | President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (49) | Trustee (since 2019). | Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Director of iShares, Inc. (since 2019); Trustee of iShares Trust (since 2019). | |||
(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. (b) Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. | ||||||
Independent Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Cecilia H. Herbert (70) | Trustee (since 2011); Independent Board Chair (since 2016). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Technology and Quality Committees of Stanford Health Care (since 2016); Member of the Audit Committee (since 2018) and Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); 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. | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (63) | Trustee (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Director of iShares, Inc. (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016) and Director of The Hanover Insurance Group, Inc. (since (2016). | |||
Richard L. Fagnani (64) | Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). |
42 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information (continued)
Independent Trustees (continued) | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
John E. Kerrigan (64) | Trustee (since 2011); Nominating and Governance and Equity Plus Committee Chairs (since 2019). | Chief Investment Officer, Santa Clara University (since 2002). | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005). | |||
Drew E. Lawton (60) | Trustee (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). | |||
John E. Martinez (58) | Trustee (since 2011); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005). | Director of iShares, Inc. (since 2003); Trustee of iShares Trust (since 2003); Director of Cloudera Foundation (since 2017); Director of Reading Partners (2012-2016). | |||
Madhav V. Rajan (55) | Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Director of iShares, Inc. (since 2011); Trustee of iShares Trust (since 2011). | |||
Officers | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | ||||
Armando Senra (48) | President (since 2019). | Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and LATAM iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006). | ||||
Neal J. Andrews (53) | Treasurer and Chief Financial Officer (since 2019). | Managing Director, BlackRock, Inc. (since 2006); Chief Financial Officer of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2007). | ||||
Charles Park (52) | Chief Compliance Officer (since 2011). | Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||||
Deepa Damre (44) | Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||||
Scott Radell (50) | Executive Vice President (since 2012). | Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||||
Alan Mason (58) | Executive Vice President (since 2016). | Managing Director, BlackRock, Inc. (since 2009). | ||||
Marybeth Leithead (56) | Executive Vice President (since 2019). | Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016). |
TRUSTEEAND OFFICER INFORMATION | 43 |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
44 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Fixed Income | ||
CPI | Consumer Price Index | |
LIBOR | London Interbank Offered Rate |
GLOSSARYOF TERMS USEDINTHIS REPORT | 45 |
Additional Financial Information
Schedules of Investments (Unaudited)
October 31, 2019
Statements of Assets and Liabilities (Unaudited)
October 31, 2019
Audited Financial Statements
February 28, 2019
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 (unaudited) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes | ||||||||
Advertising — 0.4% | ||||||||
Lamar Media Corp. | ||||||||
5.00%, 05/01/23 (Call 05/01/20)(a) | $ | 10,490 | $ | 10,687,781 | ||||
5.38%, 01/15/24 (Call 01/15/20) | 8,463 | 8,679,825 | ||||||
5.75%, 02/01/26 (Call 02/01/21)(a) | 15,041 | 15,903,488 | ||||||
Outfront Media Capital LLC/Outfront Media Capital Corp. | ||||||||
5.00%, 08/15/27 (Call 08/15/22)(a)(b) | 13,587 | 14,222,328 | ||||||
5.63%, 02/15/24 (Call 02/15/20) | 10,112 | 10,395,397 | ||||||
5.88%, 03/15/25 (Call 09/15/20)(a) | 8,754 | 9,038,505 | ||||||
|
| |||||||
68,927,324 | ||||||||
Aerospace & Defense — 2.8% | ||||||||
Arconic Inc. | ||||||||
5.13%, 10/01/24 (Call 07/01/24)(a) | 27,044 | 29,004,690 | ||||||
5.40%, 04/15/21 (Call 01/15/21)(a) | 26,765 | 27,574,127 | ||||||
5.87%, 02/23/22 | 12,698 | 13,543,647 | ||||||
6.15%, 08/15/20(a) | 4,718 | 4,848,975 | ||||||
BBA U.S. Holdings Inc., 4.00%, 03/01/28 (Call 03/01/23)(b) | 8,322 | 8,259,585 | ||||||
Bombardier Inc. | ||||||||
5.75%, 03/15/22(b) | 10,640 | 10,427,200 | ||||||
6.00%, 10/15/22 (Call 04/15/20)(a)(b) | 27,529 | 26,832,172 | ||||||
6.13%, 01/15/23(a)(b) | 27,322 | 26,701,157 | ||||||
7.50%, 12/01/24 (Call 12/01/20)(a)(b) | 22,183 | 21,475,917 | ||||||
7.50%, 03/15/25 (Call 03/15/20)(a)(b) | 34,161 | 32,692,682 | ||||||
7.88%, 04/15/27 (Call 04/15/22)(b) | 46,325 | 43,748,172 | ||||||
8.75%, 12/01/21(b) | 21,088 | 22,365,636 | ||||||
TransDigm Inc. | ||||||||
5.50%, 11/15/27 (Call 11/15/22)(b) | 35,936 | 35,817,052 | ||||||
6.00%, 07/15/22 (Call 07/15/20)(a) | 27,598 | 28,067,166 | ||||||
6.25%, 03/15/26 (Call 03/15/22)(a)(b) | 92,384 | 98,908,620 | ||||||
6.38%, 06/15/26 (Call 06/15/21)(a) | 20,918 | 21,807,015 | ||||||
6.50%, 07/15/24 (Call 07/15/20)(a) | 26,733 | 27,558,381 | ||||||
6.50%, 05/15/25 (Call 05/15/20)(a) | 15,932 | 16,504,755 | ||||||
7.50%, 03/15/27 (Call 03/15/22)(a) | 10,864 | 11,692,597 | ||||||
TransDigm UK Holdings PLC, 6.88%, 05/15/26 (Call 05/15/21)(a) | 10,415 | 11,083,839 | ||||||
Triumph Group Inc. | ||||||||
6.25%, 09/15/24 (Call 09/15/20)(b) | 5,622 | 5,904,506 | ||||||
7.75%, 08/15/25 (Call 08/15/20)(a) | 12,493 | 12,512,520 | ||||||
|
| |||||||
537,330,411 | ||||||||
Agriculture — 0.3% | ||||||||
JBS Investments II GmbH | ||||||||
5.75%, 01/15/28 (Call 07/30/22)(a)(b) | 16,440 | 17,097,600 | ||||||
7.00%, 01/15/26 (Call 01/15/22)(b) | 22,054 | 23,906,536 | ||||||
Vector Group Ltd., 6.13%, 02/01/25 (Call 02/01/20)(b) | 20,661 | 19,836,713 | ||||||
|
| |||||||
60,840,849 | ||||||||
Airlines — 0.2% | ||||||||
Air Canada, 7.75%, 04/15/21(a)(b) | 7,645 | 8,199,613 | ||||||
American Airlines Group Inc., | 16,154 | 16,863,461 | ||||||
United Airlines Holdings Inc., | 7,864 | 8,114,468 | ||||||
|
| |||||||
33,177,542 | ||||||||
Apparel — 0.2% | ||||||||
Hanesbrands Inc. | ||||||||
4.63%, 05/15/24 (Call 02/15/24)(a)(b) | 17,324 | 18,189,911 | ||||||
4.88%, 05/15/26 (Call 02/15/26)(a)(b) | 21,085 | 22,303,976 | ||||||
|
| |||||||
40,493,887 |
Security | Par (000) | Value | ||||||
Auto Manufacturers — 0.9% | ||||||||
Allison Transmission Inc. | ||||||||
4.75%, 10/01/27 (Call 10/01/22)(a)(b) | $ | 9,345 | $ | 9,565,776 | ||||
5.00%, 10/01/24 (Call 10/01/20)(a)(b) | 23,314 | 23,884,027 | ||||||
5.88%, 06/01/29 (Call 06/01/24)(a)(b) | 10,586 | 11,403,107 | ||||||
Fiat Chrysler Automobiles NV, | 31,515 | 33,642,262 | ||||||
Jaguar Land Rover Automotive PLC | ||||||||
4.50%, 10/01/27 (Call 07/01/27)(a)(b) | 9,750 | 8,364,734 | ||||||
5.63%, 02/01/23 (Call 02/01/20)(a)(b) | 12,850 | 12,801,455 | ||||||
Navistar International Corp., 6.63%, 11/01/25 (Call 11/01/20)(a)(b) | 25,474 | 25,935,716 | ||||||
Tesla Inc., 5.30%, 08/15/25 (Call 08/15/20)(a)(b) | 41,628 | 39,276,018 | ||||||
|
| |||||||
164,873,095 | ||||||||
Auto Parts & Equipment — 1.2% | ||||||||
Adient Global Holdings Ltd., 4.88%, 08/15/26 (Call 08/15/21)(a)(b) | 19,977 | 15,829,653 | ||||||
Adient U.S. LLC, 7.00%, 05/15/26 (Call 05/15/22)(b) | 16,535 | 17,364,766 | ||||||
American Axle & Manufacturing Inc. | ||||||||
6.25%, 04/01/25 (Call 04/01/20)(a) | 16,935 | 16,363,444 | ||||||
6.25%, 03/15/26 (Call 03/15/21)(a) | 9,104 | 8,660,891 | ||||||
6.50%, 04/01/27 (Call 04/01/22)(a) | 11,566 | 10,973,243 | ||||||
6.63%, 10/15/22 (Call 10/15/20) | 8,910 | 8,982,938 | ||||||
Dana Financing Luxembourg Sarl, 5.75%, 04/15/25 (Call 04/15/20)(a)(b) | 8,438 | 8,710,710 | ||||||
Dana Inc., 5.50%, 12/15/24 (Call 12/15/19)(a) | 9,687 | 9,968,529 | ||||||
Goodyear Tire & Rubber Co. (The) | ||||||||
4.88%, 03/15/27 (Call 12/15/26)(a) | 15,352 | 15,440,613 | ||||||
5.00%, 05/31/26 (Call 05/31/21)(a) | 19,949 | 20,647,215 | ||||||
5.13%, 11/15/23 (Call 11/15/19)(a) | 22,271 | 22,574,331 | ||||||
Panther BF Aggregator 2 LP/Panther Finance Co. Inc. | ||||||||
6.25%, 05/15/26 (Call 05/15/22)(a)(b) | 22,079 | 23,419,637 | ||||||
8.50%, 05/15/27 (Call 05/15/22)(a)(b) | 44,974 | 45,311,305 | ||||||
|
| |||||||
224,247,275 | ||||||||
Banks — 1.2% | ||||||||
CIT Group Inc. | ||||||||
4.13%, 03/09/21 (Call 02/09/21) | 9,223 | 9,430,517 | ||||||
4.75%, 02/16/24 (Call 11/16/23)(a) | 11,931 | 12,743,148 | ||||||
5.00%, 08/15/22 | 24,203 | 25,750,762 | ||||||
5.00%, 08/01/23 | 17,119 | 18,465,593 | ||||||
5.25%, 03/07/25 (Call 12/07/24)(a) | 12,422 | 13,670,877 | ||||||
6.13%, 03/09/28 | 11,470 | 13,534,600 | ||||||
Deutsche Bank AG, 4.30%, 05/24/28 (Call 05/24/23)(a)(c) | 32,746 | 30,984,632 | ||||||
Deutsche Bank AG/New York NY, 4.88%, 12/01/32 (Call 12/01/27)(a)(c) | 23,053 | 21,117,009 | ||||||
Fifth Third Bancorp., | 14,668 | 14,894,590 | ||||||
Freedom Mortgage Corp. | ||||||||
8.13%, 11/15/24 (Call 11/15/20)(a)(b) | 9,443 | 8,890,683 | ||||||
8.25%, 04/15/25 (Call 04/15/21)(b) | 15,143 | 14,272,277 | ||||||
Intesa Sanpaolo SpA, 5.02%, 06/26/24(a)(b) | 45,715 | 47,689,797 | ||||||
|
| |||||||
231,444,485 | ||||||||
Building Materials — 0.8% | ||||||||
Builders FirstSource Inc. | ||||||||
5.63%, 09/01/24 (Call 09/01/20)(a)(b) | 12,229 | 12,744,366 | ||||||
6.75%, 06/01/27 (Call 06/01/22)(a)(b) | 13,406 | 14,580,620 | ||||||
Griffon Corp., 5.25%, 03/01/22 (Call 03/01/20) | 21,754 | 21,900,256 | ||||||
Standard Industries Inc./NJ | ||||||||
4.75%, 01/15/28 (Call 01/15/23)(a)(b) | 21,743 | 22,540,968 | ||||||
5.00%, 02/15/27 (Call 02/15/22)(b) | 10,332 | 10,812,007 | ||||||
5.38%, 11/15/24 (Call 11/15/19)(b) | 22,969 | 23,630,507 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Building Materials (continued) | ||||||||
5.50%, 02/15/23 (Call 02/15/20)(a)(b) | $ | 11,082 | $ | 11,289,787 | ||||
6.00%, 10/15/25 (Call 10/15/20)(b) | 24,382 | 25,673,515 | ||||||
Summit Materials LLC/Summit Materials Finance Corp., 6.13%, 07/15/23 (Call 07/15/20) | 12,005 | 12,214,712 | ||||||
|
| |||||||
155,386,738 | ||||||||
Chemicals — 1.4% | ||||||||
Ashland LLC, 4.75%, 08/15/22 | 23,092 | 24,188,870 | ||||||
Blue Cube Spinco LLC | ||||||||
9.75%, 10/15/23 (Call 10/15/20) | 13,385 | 14,631,723 | ||||||
10.00%, 10/15/25 (Call 10/15/20) | 9,068 | 10,144,825 | ||||||
CF Industries Inc., 3.45%, 06/01/23 | 13,220 | 13,494,040 | ||||||
Chemours Co. (The) | ||||||||
5.38%, 05/15/27 (Call 02/15/27)(a) | 11,792 | 10,451,889 | ||||||
6.63%, 05/15/23 (Call 05/15/20) | 19,361 | 19,270,340 | ||||||
7.00%, 05/15/25 (Call 05/15/20)(a) | 17,215 | 16,555,092 | ||||||
NOVA Chemicals Corp. | ||||||||
4.88%, 06/01/24 (Call 03/03/24)(a)(b) | 22,670 | 23,082,311 | ||||||
5.00%, 05/01/25 (Call 01/31/25)(b) | 12,633 | 12,762,109 | ||||||
5.25%, 08/01/23 (Call 08/01/20)(b) | 10,487 | 10,628,423 | ||||||
5.25%, 06/01/27 (Call 03/03/27)(b) | 22,993 | 23,707,220 | ||||||
OCI NV, 5.25%, 11/01/24 (Call 11/01/21)(a)(b) | 11,425 | 11,810,594 | ||||||
Olin Corp. | ||||||||
5.00%, 02/01/30 (Call 02/01/24)(a) | 12,087 | 11,926,790 | ||||||
5.13%, 09/15/27 (Call 03/15/22)(a) | 9,379 | 9,683,818 | ||||||
5.63%, 08/01/29 (Call 08/01/24) | 18,718 | 19,548,611 | ||||||
Tronox Finance PLC, 5.75%, 10/01/25 | 9,324 | 8,760,814 | ||||||
Tronox Inc., 6.50%, 04/15/26 | 14,494 | 13,994,474 | ||||||
WR Grace & Co.-Conn, 5.13%, 10/01/21(b) | 14,673 | 15,226,906 | ||||||
|
| |||||||
269,868,849 | ||||||||
Coal — 0.1% | ||||||||
Peabody Energy Corp. | ||||||||
6.00%, 03/31/22 (Call 03/31/20)(b) | 6,801 | 6,290,925 | ||||||
6.38%, 03/31/25 (Call 03/31/20)(b) | 7,600 | 6,248,964 | ||||||
|
| |||||||
12,539,889 | ||||||||
Commercial Services — 3.6% | ||||||||
Avis Budget Car Rental LLC/Avis Budget Finance Inc. | ||||||||
5.50%, 04/01/23 (Call 04/01/20) | 4,300 | 4,384,710 | ||||||
5.75%, 07/15/27 (Call 06/15/22)(a)(b) | 8,826 | 9,061,694 | ||||||
Herc Holdings Inc., 5.50%, 07/15/27 (Call 07/15/22)(a)(b) | 27,993 | 29,172,157 | ||||||
Hertz Corp. (The) | ||||||||
5.50%, 10/15/24 (Call 10/15/20)(a)(b) | 18,656 | 18,509,229 | ||||||
6.25%, 10/15/22 (Call 10/15/20) | 9,992 | 10,082,165 | ||||||
7.13%, 08/01/26 (Call 08/01/22)(a)(b) | 11,402 | 11,757,875 | ||||||
7.63%, 06/01/22 (Call 06/01/20)(a)(b) | 27,483 | 28,598,961 | ||||||
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, 6.38%, 08/01/23 (Call 08/01/20)(a)(b) | 22,666 | 23,459,310 | ||||||
MPH Acquisition Holdings LLC, 7.13%, 06/01/24 (Call 06/01/20)(b) | 36,937 | 34,354,295 | ||||||
Nielsen Co Luxembourg SARL/The | ||||||||
5.00%, 02/01/25 (Call 02/01/20)(a)(b) | 12,739 | 12,707,152 | ||||||
5.50%, 10/01/21 (Call 12/02/19)(a)(b) | 11,742 | 11,781,385 | ||||||
Nielsen Finance LLC/Nielsen Finance Co. | ||||||||
4.50%, 10/01/20 (Call 12/02/19) | 11,283 | 11,311,884 | ||||||
5.00%, 04/15/22 (Call 04/15/20)(b) | 51,968 | 52,357,760 |
Security | Par (000) | Value | ||||||
Commercial Services (continued) | ||||||||
Prime Security Services Borrower LLC/Prime Finance Inc. | ||||||||
5.25%, 04/15/24(b) | $ | 18,829 | $ | 19,266,413 | ||||
5.75%, 04/15/26(a)(b) | 30,724 | 31,482,883 | ||||||
9.25%, 05/15/23 (Call 05/15/20)(b) | 23,716 | 24,949,232 | ||||||
Refinitiv U.S. Holdings Inc. | ||||||||
6.25%, 05/15/26 (Call 11/15/21)(a)(b) | 27,164 | 29,472,940 | ||||||
8.25%, 11/15/26 (Call 11/15/21)(a)(b) | 37,076 | 41,664,155 | ||||||
Service Corp. International/U.S. | ||||||||
4.63%, 12/15/27 (Call 12/15/22)(a) | 11,256 | 11,747,156 | ||||||
5.13%, 06/01/29 (Call 06/01/24) | 16,067 | 17,211,774 | ||||||
5.38%, 05/15/24 (Call 05/15/20)(a) | 15,259 | 15,719,846 | ||||||
ServiceMaster Co. LLC (The), 5.13%, 11/15/24 (Call 11/15/19)(a)(b) | 18,249 | 18,919,397 | ||||||
United Rentals North America Inc. | ||||||||
3.88%, 11/15/27 (Call 11/15/22) | 3,589 | 3,625,787 | ||||||
4.63%, 07/15/23 (Call 11/20/19) | 22,361 | 22,869,713 | ||||||
4.63%, 10/15/25 (Call 10/15/20)(a) | 15,674 | 16,011,145 | ||||||
4.88%, 01/15/28 (Call 01/15/23)(a) | 37,460 | 38,677,450 | ||||||
5.25%, 01/15/30 (Call 01/15/25)(a) | 16,163 | 17,011,557 | ||||||
5.50%, 07/15/25 (Call 07/15/20) | 17,381 | 18,097,097 | ||||||
5.50%, 05/15/27 (Call 05/15/22) | 22,532 | 23,799,425 | ||||||
5.88%, 09/15/26 (Call 09/15/21) | 22,425 | 23,797,231 | ||||||
6.50%, 12/15/26 (Call 12/15/21)(a) | 21,888 | 23,692,561 | ||||||
Verscend Escrow Corp., 9.75%, 08/15/26 (Call 08/15/21)(b) | 25,957 | 27,705,043 | ||||||
|
| |||||||
683,259,382 | ||||||||
Computers — 1.4% | ||||||||
Banff Merger Sub Inc., 9.75%, 09/01/26 (Call 09/01/21)(a)(b) | 34,048 | 31,877,440 | ||||||
Dell Inc., 4.63%, 04/01/21(a) | 7,179 | 7,380,012 | ||||||
Dell International LLC/EMC Corp. | ||||||||
5.88%, 06/15/21 (Call 06/15/20)(b) | 23,353 | 23,738,546 | ||||||
7.13%, 06/15/24 (Call 06/15/20)(a)(b) | 30,905 | 32,698,223 | ||||||
EMC Corp., 3.38%, 06/01/23 (Call 03/01/23)(a) | 21,785 | 21,974,747 | ||||||
Exela Intermediate LLC/Exela Finance Inc., 10.00%, 07/15/23 (Call 07/15/20)(a)(b) | 18,571 | 8,809,618 | ||||||
Harland Clarke Holdings Corp. | ||||||||
8.38%, 08/15/22 (Call 02/15/20)(b) | 20,107 | 15,969,599 | ||||||
9.25%, 03/01/21 (Call 03/01/20)(a)(b) | 12,785 | 11,796,826 | ||||||
Leidos Holdings Inc., 4.45%, 12/01/20 (Call 09/01/20) | 505 | 511,944 | ||||||
NCR Corp. | ||||||||
5.00%, 07/15/22 (Call 07/15/20)(a) | 12,784 | 12,911,840 | ||||||
5.75%, 09/01/27 (Call 09/01/22)(b) | 9,816 | 10,029,848 | ||||||
5.88%, 12/15/21 (Call 12/15/19)(a) | 6,715 | 6,741,930 | ||||||
6.13%, 09/01/29 (Call 09/01/24)(a)(b) | 12,636 | 13,215,479 | ||||||
6.38%, 12/15/23 (Call 12/15/19)(a) | 13,588 | 13,932,802 | ||||||
Western Digital Corp., 4.75%, 02/15/26 (Call 11/15/25)(a) | 52,744 | 53,863,096 | ||||||
|
| |||||||
265,451,950 | ||||||||
Cosmetics & Personal Care — 0.3% | ||||||||
Avon International Capital PLC, 6.50%, 08/15/22 (Call 08/15/20)(a)(b) | 7,670 | 7,957,625 | ||||||
Avon International Operations Inc., 7.88%, 08/15/22 (Call 08/15/20)(b) | 9,464 | 9,859,038 | ||||||
Avon Products Inc., 7.00%, 03/15/23 | 12,424 | 13,076,260 | ||||||
Edgewell Personal Care Co. | ||||||||
4.70%, 05/19/21 | 13,706 | 14,067,290 | ||||||
4.70%, 05/24/22(a) | 10,234 | 10,592,190 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Cosmetics & Personal Care (continued) | ||||||||
First Quality Finance Co. Inc., 5.00%, 07/01/25 (Call 07/01/20)(a)(b) | $ | 7,247 | $ | 7,502,094 | ||||
|
| |||||||
63,054,497 | ||||||||
Distribution & Wholesale — 0.2% | ||||||||
American Builders & Contractors Supply Co. Inc. | ||||||||
4.00%, 01/15/28 (Call 01/15/23)(b) | 9,568 | 9,556,040 | ||||||
5.88%, 05/15/26 (Call 05/15/21)(a)(b) | 249 | 261,525 | ||||||
Anixter Inc., 5.13%, 10/01/21(a) | 7,171 | 7,408,360 | ||||||
Performance Food Group Inc., 5.50%, 10/15/27 (Call 10/15/22)(b) | 21,069 | 22,337,132 | ||||||
|
| |||||||
39,563,057 | ||||||||
Diversified Financial Services — 3.2% | ||||||||
AerCap Holdings NV, 5.88%, 10/10/79 (Call 10/10/24)(c) | 9,978 | 10,438,984 | ||||||
Allied Universal Holdco LLC/Allied Universal Finance Corp. | ||||||||
6.63%, 07/15/26 (Call 07/15/22)(a)(b) | 22,579 | 24,033,839 | ||||||
9.75%, 07/15/27 (Call 07/15/22)(b) | 24,820 | 26,156,661 | ||||||
Ally Financial Inc. | ||||||||
3.88%, 05/21/24 (Call 04/21/24) | 11,015 | 11,519,718 | ||||||
4.13%, 02/13/22 | 4,759 | 4,923,384 | ||||||
4.25%, 04/15/21(a) | 10,084 | 10,338,621 | ||||||
4.63%, 05/19/22 | 7,093 | 7,431,159 | ||||||
4.63%, 03/30/25(a) | 7,970 | 8,667,774 | ||||||
5.13%, 09/30/24(a) | 14,088 | 15,507,366 | ||||||
5.75%, 11/20/25 (Call 10/20/25) | 22,619 | 25,220,185 | ||||||
7.50%, 09/15/20(a) | 3,336 | 3,477,780 | ||||||
Nationstar Mortgage Holdings Inc. | ||||||||
8.13%, 07/15/23 (Call 07/15/20)(b) | 20,286 | 21,492,595 | ||||||
9.13%, 07/15/26 (Call 07/15/21)(b) | 16,624 | 18,120,160 | ||||||
Nationstar Mortgage LLC/Nationstar Capital Corp., 6.50%, 07/01/21 (Call 12/02/19)(a) | 9,596 | 9,631,483 | ||||||
Navient Corp. | ||||||||
5.00%, 10/26/20(a) | 6,184 | 6,295,138 | ||||||
5.50%, 01/25/23 | 21,544 | 22,432,690 | ||||||
5.88%, 03/25/21 | 12,438 | 12,896,713 | ||||||
5.88%, 10/25/24(a) | 11,258 | 11,599,009 | ||||||
6.13%, 03/25/24(a) | 19,947 | 20,989,979 | ||||||
6.50%, 06/15/22(a) | 22,596 | 24,283,921 | ||||||
6.63%, 07/26/21(a) | 15,420 | 16,319,410 | ||||||
6.75%, 06/25/25(a) | 11,131 | 11,767,693 | ||||||
6.75%, 06/15/26(a) | 11,676 | 12,201,420 | ||||||
7.25%, 01/25/22(a) | 15,773 | 17,108,973 | ||||||
7.25%, 09/25/23 | 9,641 | 10,556,702 | ||||||
Quicken Loans Inc. | ||||||||
5.25%, 01/15/28 (Call 01/15/23)(a)(b) | 22,569 | 23,213,684 | ||||||
5.75%, 05/01/25 (Call 05/01/20)(a)(b) | 26,859 | 27,717,951 | ||||||
Springleaf Finance Corp. | ||||||||
5.63%, 03/15/23(a) | 18,252 | 19,666,530 | ||||||
6.13%, 05/15/22 | 21,707 | 23,362,159 | ||||||
6.13%, 03/15/24 (Call 09/15/23)(a) | 27,395 | 29,888,372 | ||||||
6.63%, 01/15/28 (Call 07/15/27)(a) | 19,366 | 21,447,845 | ||||||
6.88%, 03/15/25(a) | 27,984 | 31,726,860 | ||||||
7.13%, 03/15/26(a) | 36,869 | 42,053,003 | ||||||
7.75%, 10/01/21 | 13,007 | 14,177,890 | ||||||
8.25%, 12/15/20(a) | 18,270 | 19,423,751 | ||||||
|
| |||||||
616,089,402 |
Security | Par (000) | Value | ||||||
Electric — 2.6% | ||||||||
AES Corp./VA | ||||||||
4.00%, 03/15/21(a) | $ | 9,368 | $ | 9,530,949 | ||||
4.50%, 03/15/23 (Call 03/15/20) | 10,827 | 11,108,798 | ||||||
4.88%, 05/15/23 (Call 05/15/20)(a) | 11,778 | 11,981,171 | ||||||
5.13%, 09/01/27 (Call 09/01/22)(a) | 9,347 | 10,022,962 | ||||||
5.50%, 04/15/25 (Call 04/15/20)(a) | 11,223 | 11,673,105 | ||||||
6.00%, 05/15/26 (Call 05/15/21)(a) | 9,824 | 10,514,873 | ||||||
Calpine Corp. | ||||||||
5.25%, 06/01/26 (Call 06/01/21)(a)(b) | 26,294 | 27,277,971 | ||||||
5.38%, 01/15/23 (Call 10/15/20) | 27,463 | 27,833,429 | ||||||
5.50%, 02/01/24 (Call 02/01/20)(a) | 11,947 | 12,088,871 | ||||||
5.75%, 01/15/25 (Call 10/15/20)(a) | 30,420 | 31,256,550 | ||||||
5.88%, 01/15/24 (Call 11/01/19)(a)(b) | 9,765 | 9,969,516 | ||||||
6.00%, 01/15/22 (Call 11/01/19)(b) | 13,683 | 13,708,998 | ||||||
Clearway Energy Operating LLC | ||||||||
5.38%, 08/15/24 (Call 08/15/20)(a) | 10,356 | 10,524,285 | ||||||
5.75%, 10/15/25 (Call 10/15/21)(a) | 11,036 | 11,283,758 | ||||||
NextEra Energy Operating Partners LP | ||||||||
3.88%, 10/15/26 (Call 07/15/26)(a)(b) | 12,309 | 12,278,228 | ||||||
4.25%, 07/15/24 (Call 04/15/24)(a)(b) | 14,457 | 14,926,021 | ||||||
4.25%, 09/15/24 (Call 07/15/24)(a)(b) | 12,815 | 13,178,091 | ||||||
4.50%, 09/15/27 (Call 06/15/27)(a)(b) | 11,058 | 11,320,117 | ||||||
NRG Energy Inc. | ||||||||
5.25%, 06/15/29 (Call 06/15/24)(a)(b) | 15,558 | 16,773,469 | ||||||
5.75%, 01/15/28 (Call 01/15/23)(a) | 18,382 | 19,975,401 | ||||||
6.63%, 01/15/27 (Call 07/15/21)(a) | 28,538 | 31,016,468 | ||||||
7.25%, 05/15/26 (Call 05/15/21)(a) | 21,685 | 23,805,142 | ||||||
Talen Energy Supply LLC | ||||||||
6.50%, 06/01/25 (Call 06/01/20)(a) | 14,633 | 11,007,939 | ||||||
6.63%, 01/15/28 (Call 01/15/23)(b) | 10,097 | 9,721,190 | ||||||
7.25%, 05/15/27 (Call 05/15/22)(a)(b) | 15,513 | 15,474,218 | ||||||
10.50%, 01/15/26 (Call 01/15/22)(a)(b) | 13,584 | 11,563,385 | ||||||
Vistra Energy Corp., 5.88%, 06/01/23 (Call 06/01/20) | 8,520 | 8,707,545 | ||||||
Vistra Operations Co. LLC | ||||||||
5.00%, 07/31/27 (Call 07/31/22)(a)(b) | 30,591 | 31,699,924 | ||||||
5.50%, 09/01/26 (Call 09/01/21)(a)(b) | 19,918 | 21,022,851 | ||||||
5.63%, 02/15/27 (Call 02/15/22)(a)(b) | 27,670 | 29,406,580 | ||||||
|
| |||||||
490,651,805 | ||||||||
Electrical Components & Equipment — 0.2% | ||||||||
Energizer Holdings Inc. | ||||||||
5.50%, 06/15/25 (Call 06/15/20)(a)(b) | 12,707 | 13,183,513 | ||||||
6.38%, 07/15/26 (Call 07/15/21)(a)(b) | 12,413 | 13,223,786 | ||||||
7.75%, 01/15/27 (Call 01/15/22)(a)(b) | 15,319 | 16,949,113 | ||||||
|
| |||||||
43,356,412 | ||||||||
Electronics — 0.8% | ||||||||
ADT Security Corp. (The) | ||||||||
3.50%, 07/15/22(a) | 20,549 | 20,635,127 | ||||||
4.13%, 06/15/23(a) | 15,168 | 15,439,761 | ||||||
6.25%, 10/15/21(a) | 22,550 | 24,128,500 | ||||||
APX Group Inc. | ||||||||
7.63%, 09/01/23 (Call 09/01/20)(a) | 9,523 | 8,383,216 | ||||||
7.88%, 12/01/22 (Call 12/01/19)(a) | 21,588 | 21,561,015 | ||||||
8.75%, 12/01/20 (Call 12/02/19) | 8,013 | 7,894,074 | ||||||
Sensata Technologies BV | ||||||||
4.88%, 10/15/23(a)(b) | 9,775 | 10,325,039 | ||||||
5.00%, 10/01/25(a)(b) | 14,133 | 15,231,134 | ||||||
5.63%, 11/01/24(a)(b) | 8,800 | 9,647,000 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electronics (continued) | ||||||||
Sensata Technologies Inc., 4.38%, 02/15/30 (Call 11/15/29)(b) | $ | 12,239 | $ | 12,357,565 | ||||
|
| |||||||
145,602,431 | ||||||||
Energy – Alternate Sources — 0.2% | ||||||||
TerraForm Power Operating LLC | ||||||||
4.25%, 01/31/23 (Call 10/31/22)(a)(b) | 11,865 | 12,233,000 | ||||||
4.75%, 01/15/30 (Call 01/15/25)(b) | 14,833 | 15,333,614 | ||||||
5.00%, 01/31/28 (Call 07/31/27)(a)(b) | 16,798 | 17,758,845 | ||||||
|
| |||||||
45,325,459 | ||||||||
Engineering & Construction — 0.3% | ||||||||
AECOM | ||||||||
5.13%, 03/15/27 (Call 12/15/26) | 22,305 | 23,580,846 | ||||||
5.88%, 10/15/24 (Call 07/15/24)(a) | 16,750 | 18,078,275 | ||||||
Brand Industrial Services Inc., 8.50%, 07/15/25 (Call 07/15/20)(a)(b) | 22,796 | 22,140,615 | ||||||
|
| |||||||
63,799,736 | ||||||||
Entertainment — 2.3% | ||||||||
AMC Entertainment Holdings Inc. | ||||||||
5.75%, 06/15/25 (Call 06/15/20)(a) | 14,282 | 13,584,377 | ||||||
5.88%, 11/15/26 (Call 11/15/21)(a) | 13,069 | 11,909,126 | ||||||
6.13%, 05/15/27 (Call 05/15/22)(a) | 9,570 | 8,654,869 | ||||||
Caesars Resort Collection LLC/CRC Finco Inc., 5.25%, 10/15/25 (Call 10/15/20)(a)(b) | 40,145 | 41,148,625 | ||||||
Cedar Fair LP, 5.25%, 07/15/29 (Call 07/15/24)(a)(b) | 12,213 | 13,072,551 | ||||||
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op, 5.38%, 04/15/27 (Call 04/15/22) | 10,728 | 11,398,500 | ||||||
Churchill Downs Inc. | ||||||||
4.75%, 01/15/28 (Call 01/15/23)(b) | 11,091 | 11,465,321 | ||||||
5.50%, 04/01/27 (Call 04/01/22)(a)(b) | 13,041 | 13,839,813 | ||||||
Cinemark USA Inc. | ||||||||
4.88%, 06/01/23 (Call 06/01/20) | 13,994 | 14,203,910 | ||||||
5.13%, 12/15/22 (Call 12/15/19)(a) | 6,854 | 6,944,636 | ||||||
Eldorado Resorts Inc. | ||||||||
6.00%, 04/01/25 (Call 04/01/20) | 21,408 | 22,558,680 | ||||||
6.00%, 09/15/26 (Call 09/15/21) | 12,546 | 13,764,904 | ||||||
International Game Technology PLC | ||||||||
6.25%, 02/15/22 (Call 08/15/21)(a)(b) | 33,498 | 35,385,753 | ||||||
6.25%, 01/15/27 (Call 07/15/26)(a)(b) | 17,055 | 19,080,008 | ||||||
6.50%, 02/15/25 (Call 08/15/24)(a)(b) | 23,217 | 25,857,934 | ||||||
Lions Gate Capital Holdings LLC | ||||||||
5.88%, 11/01/24 (Call 11/01/19)(a)(b) | 11,334 | 10,682,295 | ||||||
6.38%, 02/01/24 (Call 02/01/21)(a)(b) | 12,086 | 11,640,329 | ||||||
Live Nation Entertainment Inc., 4.75%, 10/15/27 (Call 10/15/22)(a)(b) | 6,514 | 6,791,496 | ||||||
Scientific Games International Inc. | ||||||||
5.00%, 10/15/25 (Call 10/15/20)(a)(b) | 27,429 | 28,217,584 | ||||||
8.25%, 03/15/26 (Call 03/15/22)(a)(b) | 25,152 | 26,661,120 | ||||||
10.00%, 12/01/22 (Call 12/01/19)(a) | 21,886 | 22,542,580 | ||||||
Six Flags Entertainment Corp. | ||||||||
4.88%, 07/31/24 (Call 07/31/20)(a)(b) | 20,651 | 21,322,158 | ||||||
5.50%, 04/15/27 (Call 04/15/22)(a)(b) | 11,517 | 12,064,058 | ||||||
Stars Group Holdings BV/Stars Group US Co-Borrower LLC, 7.00%, 07/15/26 (Call 07/15/21)(a)(b) | 24,324 | 26,216,407 | ||||||
|
| |||||||
429,007,034 | ||||||||
Environmental Control — 0.3% | ||||||||
Covanta Holding Corp. | 8,119 | 8,362,579 |
Security | Par (000) | Value | ||||||
Environmental Control (continued) | ||||||||
5.88%, 07/01/25 (Call 07/01/20)(a) | $ | 7,690 | $ | 8,022,052 | ||||
6.00%, 01/01/27 (Call 01/01/22)(a) | 8,992 | 9,452,840 | ||||||
GFL Environmental Inc. | ||||||||
5.38%, 03/01/23 (Call 03/01/20)(a)(b) | 8,452 | 8,726,690 | ||||||
7.00%, 06/01/26 (Call 06/01/21)(a)(b) | 7,443 | 7,922,965 | ||||||
8.50%, 05/01/27 (Call 05/01/22)(a)(b) | 15,743 | 17,277,942 | ||||||
|
| |||||||
59,765,068 | ||||||||
Food — 2.5% | ||||||||
Albertsons Companies Inc./Safeway Inc./New Albertsons LP/Albertsons LLC | ||||||||
5.75%, 03/15/25 (Call 09/15/20) | 28,599 | 29,662,883 | ||||||
5.88%, 02/15/28 (Call 08/15/22)(b) | 15,728 | 16,839,318 | ||||||
6.63%, 06/15/24 (Call 06/15/20) | 27,830 | 29,186,712 | ||||||
7.50%, 03/15/26 (Call 03/15/22)(a)(b) | 14,408 | 16,082,518 | ||||||
B&G Foods Inc. | ||||||||
5.25%, 04/01/25 (Call 04/01/20)(a) | 23,327 | 23,779,327 | ||||||
5.25%, 09/15/27 (Call 03/01/22)(a) | 12,660 | 12,628,350 | ||||||
JBS Investments GmbH, 6.25%, 02/05/23 | ||||||||
(Call 02/05/20)(b) | 12,137 | 12,372,458 | ||||||
JBS USA LUX SA/JBS USA Finance Inc. | ||||||||
5.75%, 06/15/25 (Call 06/15/20)(a)(b) | 25,031 | 26,000,951 | ||||||
5.88%, 07/15/24 (Call 07/15/20)(a)(b) | 19,083 | 19,679,046 | ||||||
6.75%, 02/15/28 (Call 02/15/23)(b) | 19,500 | 21,535,439 | ||||||
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc. | ||||||||
5.50%, 01/15/30 (Call 01/15/25)(a)(b) | 26,396 | 28,361,560 | ||||||
6.50%, 04/15/29 (Call 04/15/24)(a)(b) | 31,799 | 35,362,542 | ||||||
Lamb Weston Holdings Inc. | ||||||||
4.63%, 11/01/24 (Call 11/01/21)(a)(b) | 18,028 | 18,990,996 | ||||||
4.88%, 11/01/26 (Call 11/01/21)(a)(b) | 16,983 | 17,909,890 | ||||||
Pilgrim’s Pride Corp. | ||||||||
5.75%, 03/15/25 (Call 03/15/20)(b) | 23,046 | 23,881,417 | ||||||
5.88%, 09/30/27 (Call 09/30/22)(a)(b) | 18,566 | 19,879,545 | ||||||
Post Holdings Inc. | ||||||||
5.00%, 08/15/26 (Call 08/15/21)(b) | 36,578 | 38,136,223 | ||||||
5.50%, 03/01/25 (Call 03/01/20)(a)(b) | 21,927 | 22,989,819 | ||||||
5.50%, 12/15/29 (Call 12/15/24)(b) | 18,822 | 19,865,157 | ||||||
5.63%, 01/15/28 (Call 12/01/22)(a)(b) | 20,052 | 21,410,385 | ||||||
5.75%, 03/01/27 (Call 03/01/22)(a)(b) | 28,001 | 29,810,705 | ||||||
|
| |||||||
484,365,241 | ||||||||
Food Service — 0.4% | ||||||||
Aramark Services Inc. | ||||||||
4.75%, 06/01/26 (Call 06/01/21)(a) | 9,623 | 9,891,714 | ||||||
5.00%, 04/01/25 (Call 04/01/20)(a)(b) | 14,431 | 15,026,279 | ||||||
5.00%, 02/01/28 (Call 02/01/23)(a)(b) | 26,944 | 28,156,480 | ||||||
5.13%, 01/15/24 (Call 01/15/20) | 20,534 | 21,170,759 | ||||||
|
| |||||||
74,245,232 | ||||||||
Gas — 0.3% | ||||||||
AmeriGas Partners LP/AmeriGas Finance Corp. | ||||||||
5.50%, 05/20/25 (Call 02/20/25)(a) | 16,401 | 17,632,715 | ||||||
5.63%, 05/20/24 (Call 03/20/24)(a) | 12,758 | 13,803,891 | ||||||
5.75%, 05/20/27 (Call 02/20/27)(a) | 11,825 | 12,970,192 | ||||||
5.88%, 08/20/26 (Call 05/20/26)(a) | 13,736 | 15,257,262 | ||||||
|
| |||||||
59,664,060 | ||||||||
Hand & Machine Tools — 0.1% | ||||||||
Colfax Corp. | ||||||||
6.00%, 02/15/24 (Call 02/15/21)(a)(b) | 12,398 | 13,190,041 | ||||||
6.38%, 02/15/26 (Call 02/15/22)(a)(b) | 7,502 | 8,120,915 | ||||||
|
| |||||||
21,310,956 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Products — 0.9% | ||||||||
Avantor Inc. | ||||||||
6.00%, 10/01/24 (Call 10/01/20)(a)(b) | $ | 35,896 | $ | 38,368,517 | ||||
9.00%, 10/01/25 (Call 10/01/20)(a)(b) | 47,800 | 53,458,923 | ||||||
Hologic Inc. | ||||||||
4.38%, 10/15/25 (Call 10/15/20)(a)(b) | 22,678 | 23,263,022 | ||||||
4.63%, 02/01/28 (Call 02/01/23)(a)(b) | 7,692 | 8,071,312 | ||||||
Kinetic Concepts Inc./KCI USA Inc., 12.50%, 11/01/21 (Call 05/01/20)(a)(b) | 175 | 183,356 | ||||||
Ortho-Clinical Diagnostics Inc./Ortho-Clinical Diagnostics SA, 6.63%, 05/15/22 (Call 12/02/19)(a)(b) | 29,648 | 28,647,380 | ||||||
Teleflex Inc. | ||||||||
4.63%, 11/15/27 (Call 11/15/22)(a) | 9,867 | 10,371,450 | ||||||
4.88%, 06/01/26 (Call 06/01/21)(a) | 8,874 | 9,303,834 | ||||||
|
| |||||||
171,667,794 | ||||||||
Health Care – Services — 6.8% | ||||||||
Acadia Healthcare Co. Inc., 5.63%, 02/15/23 (Call 02/15/20) | 16,473 | 16,761,278 | ||||||
Centene Corp. | ||||||||
4.75%, 05/15/22 (Call 05/15/20) | 22,481 | 23,004,135 | ||||||
4.75%, 01/15/25 (Call 01/15/20) | 27,499 | 28,452,473 | ||||||
5.38%, 06/01/26 (Call 06/01/21)(b) | 43,167 | 45,630,118 | ||||||
6.13%, 02/15/24 (Call 02/15/20) | 19,127 | 19,921,918 | ||||||
Charles River Laboratories International Inc., 4.25%, 05/01/28 (Call 05/01/23)(b) | 9,069 | 9,239,044 | ||||||
CHS/Community Health Systems Inc. | ||||||||
5.13%, 08/01/21 (Call 02/01/20)(a) | 20,626 | 20,574,435 | ||||||
6.25%, 03/31/23 (Call 03/31/20)(a) | 73,282 | 71,515,383 | ||||||
6.88%, 02/01/22 (Call 02/01/20)(a) | 52,222 | 39,922,152 | ||||||
8.00%, 03/15/26 (Call 03/15/22)(b) | 37,986 | 37,083,832 | ||||||
8.13%, 06/30/24 (Call 06/30/21)(a)(b) | 27,590 | 21,103,627 | ||||||
8.63%, 01/15/24 (Call 01/15/21)(a)(b) | 24,589 | 25,059,924 | ||||||
9.88%, 06/30/23 (Call 06/30/20)(a)(b)(e) | 39,436 | 32,919,201 | ||||||
DaVita Inc. | ||||||||
5.00%, 05/01/25 (Call 05/01/20)(a) | 33,946 | 34,377,114 | ||||||
5.13%, 07/15/24 (Call 07/15/20)(a) | 39,556 | 40,436,615 | ||||||
Encompass Health Corp. | ||||||||
4.50%, 02/01/28 (Call 02/01/23) | 9,475 | 9,683,881 | ||||||
4.75%, 02/01/30 (Call 02/01/25) | 10,704 | 11,012,696 | ||||||
5.75%, 11/01/24 (Call 11/01/19)(a) | 20,265 | 20,517,861 | ||||||
Envision Healthcare Corp., 8.75%, 10/15/26 (Call 10/15/21)(a)(b) | 28,384 | 16,320,800 | ||||||
HCA Healthcare Inc., 6.25%, 02/15/21(a) | 18,322 | 19,239,023 | ||||||
HCA Inc. | ||||||||
5.38%, 02/01/25(a) | 58,535 | 64,315,331 | ||||||
5.38%, 09/01/26 (Call 03/01/26)(a) | 22,149 | 24,197,783 | ||||||
5.63%, 09/01/28 (Call 03/01/28)(a) | 33,961 | 38,163,674 | ||||||
5.88%, 05/01/23(a) | 26,908 | 29,596,841 | ||||||
5.88%, 02/15/26 (Call 08/15/25) | 33,634 | 37,805,100 | ||||||
5.88%, 02/01/29 (Call 08/01/28)(a) | 21,660 | 24,529,950 | ||||||
7.50%, 02/15/22 | 42,302 | 46,871,238 | ||||||
MEDNAX Inc. | ||||||||
5.25%, 12/01/23 (Call 12/01/19)(a)(b) | 15,558 | 15,789,873 | ||||||
6.25%, 01/15/27 (Call 01/15/22)(b) | 23,374 | 23,140,260 | ||||||
Molina Healthcare Inc., 5.38%, 11/15/22 (Call 08/15/22)(a) | 15,019 | 15,910,753 | ||||||
RegionalCare Hospital Partners Holdings Inc., 8.25%, 05/01/23 (Call 05/01/20)(b) | 16,657 | 17,776,662 | ||||||
RegionalCare Hospital Partners Holdings Inc./LifePoint Health Inc., 9.75%, 12/01/26 (Call 12/01/21)(a)(b) | 30,852 | 33,780,370 |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
Tenet Healthcare Corp. | ||||||||
4.63%, 07/15/24 (Call 07/15/20) | $ | 41,144 | $ | 42,371,893 | ||||
4.63%, 09/01/24 (Call 09/01/21)(b) | 12,366 | 12,731,779 | ||||||
4.88%, 01/01/26 (Call 03/01/22)(a)(b) | 43,764 | 45,295,740 | ||||||
5.13%, 05/01/25 (Call 05/01/20)(a) | 31,114 | 31,852,958 | ||||||
5.13%, 11/01/27 (Call 11/01/22)(b) | 32,989 | 34,393,734 | ||||||
6.25%, 02/01/27 (Call 02/01/22)(a)(b) | 33,996 | 35,940,571 | ||||||
6.75%, 06/15/23(a) | 41,784 | 44,286,210 | ||||||
7.00%, 08/01/25 (Call 08/01/20)(a) | 10,726 | 11,088,003 | ||||||
8.13%, 04/01/22 | 63,394 | 68,560,611 | ||||||
WellCare Health Plans Inc. | ||||||||
5.25%, 04/01/25 (Call 04/01/20)(a) | 27,642 | 28,963,633 | ||||||
5.38%, 08/15/26 (Call 08/15/21)(b) | 16,688 | 17,806,144 | ||||||
|
| |||||||
1,287,944,621 | ||||||||
Holding Companies – Diversified — 0.6% | ||||||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | ||||||||
4.75%, 09/15/24 (Call 06/15/24)(a)(b) | 12,381 | 12,544,555 | ||||||
5.88%, 02/01/22 (Call 02/01/20)(a) | 25,644 | 25,885,615 | ||||||
6.25%, 02/01/22 (Call 02/01/20) | 24,801 | 25,424,413 | ||||||
6.25%, 05/15/26 (Call 05/15/22)(a) | 26,428 | 28,033,105 | ||||||
6.38%, 12/15/25 (Call 12/15/20) | 16,615 | 17,505,208 | ||||||
6.75%, 02/01/24 (Call 02/01/20)(a) | 11,737 | 12,227,479 | ||||||
|
| |||||||
121,620,375 | ||||||||
Home Builders — 1.5% | ||||||||
Beazer Homes USA Inc., 5.88%, 10/15/27 (Call 10/15/22)(a) | 5,124 | 5,021,520 | ||||||
Brookfield Residential Properties Inc./Brookfield Residential U.S. Corp. | ||||||||
6.13%, 07/01/22 (Call 07/01/20)(a)(b) | 10,771 | 10,959,493 | ||||||
6.25%, 09/15/27 (Call 09/15/22)(a)(b) | 14,302 | 14,596,979 | ||||||
K Hovnanian Enterprises Inc. | ||||||||
10.00%, 07/15/22 (Call 07/15/20)(b) | 6,928 | 5,963,853 | ||||||
10.50%, 07/15/24 (Call 07/15/20)(a)(b) | 7,211 | 5,695,000 | ||||||
KB Home, 7.00%, 12/15/21 (Call 09/15/21) | 10,190 | 10,989,915 | ||||||
Lennar Corp. | ||||||||
4.13%, 01/15/22 (Call 10/15/21)(a) | 12,416 | 12,757,440 | ||||||
4.50%, 04/30/24 (Call 01/30/24) | 13,251 | 14,033,148 | ||||||
4.75%, 04/01/21 (Call 02/01/21) | 9,957 | 10,218,869 | ||||||
4.75%, 11/15/22 (Call 08/15/22) | 11,695 | 12,315,434 | ||||||
4.75%, 05/30/25 (Call 02/28/25)(a) | 11,727 | 12,599,818 | ||||||
4.75%, 11/29/27 (Call 05/29/27) | 21,336 | 23,065,993 | ||||||
4.88%, 12/15/23 (Call 09/15/23) | 6,794 | 7,271,851 | ||||||
5.88%, 11/15/24 (Call 05/15/24)(a) | 8,986 | 10,041,855 | ||||||
Meritage Homes Corp., 6.00%, 06/01/25 (Call 03/01/25)(a) | 8,121 | 9,144,754 | ||||||
PulteGroup Inc. | ||||||||
4.25%, 03/01/21 (Call 02/01/21) | 7,212 | 7,369,763 | ||||||
5.00%, 01/15/27 (Call 10/15/26)(a) | 15,250 | 16,664,437 | ||||||
5.50%, 03/01/26 (Call 12/01/25) | 14,167 | 15,878,374 | ||||||
Taylor Morrison Communities Inc. | ||||||||
5.75%, 01/15/28 (Call 10/15/27)(b) | 10,175 | 11,277,933 | ||||||
5.88%, 06/15/27 (Call 03/15/27)(a)(b) | 9,833 | 10,988,377 | ||||||
Toll Brothers Finance Corp. | ||||||||
3.80%, 11/01/29 (Call 08/01/29)(a) | 10,405 | 10,224,809 | ||||||
4.35%, 02/15/28 (Call 11/15/27)(a) | 8,493 | 8,830,066 | ||||||
4.38%, 04/15/23 (Call 01/15/23) | 7,369 | 7,731,358 | ||||||
4.88%, 03/15/27 (Call 12/15/26)(a) | 8,799 | 9,569,423 | ||||||
5.88%, 02/15/22 (Call 11/15/21)(a) | 7,872 | 8,373,840 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Home Builders (continued) | ||||||||
TRI Pointe Group Inc./TRI Pointe Homes Inc., 5.88%, 06/15/24 | $ | 8,745 | $ | 9,423,193 | ||||
William Lyon Homes Inc., 5.88%, 01/31/25 (Call 01/31/20)(a) | 10,093 | 10,296,262 | ||||||
|
| |||||||
291,303,757 | ||||||||
Home Furnishings — 0.1% | ||||||||
Tempur Sealy International Inc. | ||||||||
5.50%, 06/15/26 (Call 06/15/21) | 13,014 | 13,593,340 | ||||||
5.63%, 10/15/23 (Call 10/15/20)(a) | 7,873 | 8,106,730 | ||||||
|
| |||||||
21,700,070 | ||||||||
Household Products & Wares — 0.2% | ||||||||
Prestige Brands Inc. | ||||||||
5.38%, 12/15/21 (Call 12/15/19)(a)(b) | 6,644 | 6,656,735 | ||||||
6.38%, 03/01/24 (Call 03/01/20)(a)(b) | 12,418 | 12,961,287 | ||||||
Spectrum Brands Inc., 5.75%, 07/15/25 (Call 07/15/20)(a) | 24,387 | 25,463,774 | ||||||
|
| |||||||
45,081,796 | ||||||||
Insurance — 0.5% | ||||||||
Acrisure LLC/Acrisure Finance Inc. | ||||||||
7.00%, 11/15/25 (Call 11/15/20)(a)(b) | 21,312 | 19,543,185 | ||||||
8.13%, 02/15/24 (Call 02/15/21)(b) | 19,566 | 20,758,548 | ||||||
10.13%, 08/01/26 (Call 08/01/22)(b) | 9,105 | 9,423,675 | ||||||
Genworth Holdings Inc., 7.63%, 09/24/21 | 17,567 | 18,185,504 | ||||||
HUB International Ltd., 7.00%, 05/01/26 (Call 05/01/21)(b) | 30,436 | 31,413,376 | ||||||
|
| |||||||
99,324,288 | ||||||||
Internet — 2.5% | ||||||||
Match Group Inc. | ||||||||
5.00%, 12/15/27 (Call 12/15/22)(a)(b) | 8,575 | 8,943,526 | ||||||
6.38%, 06/01/24 (Call 06/01/20)(a) | 7,046 | 7,418,903 | ||||||
Netflix Inc. | ||||||||
4.38%, 11/15/26(a) | 22,991 | 23,417,849 | ||||||
4.88%, 04/15/28 | 36,451 | 37,664,454 | ||||||
4.88%, 06/15/30 (Call 03/15/30)(a)(b) | 20,158 | 20,392,968 | ||||||
5.38%, 02/01/21(a) | 8,783 | 9,072,107 | ||||||
5.38%, 11/15/29(a)(b) | 19,807 | 20,873,948 | ||||||
5.50%, 02/15/22(a) | 12,790 | 13,556,979 | ||||||
5.75%, 03/01/24(a) | 9,235 | 10,171,544 | ||||||
5.88%, 02/15/25 | 18,153 | 20,027,864 | ||||||
5.88%, 11/15/28(a) | 41,378 | 45,520,972 | ||||||
6.38%, 05/15/29(a)(b) | 17,441 | 19,568,619 | ||||||
Symantec Corp. | ||||||||
3.95%, 06/15/22 (Call 03/15/22)(a) | 6,863 | 7,049,674 | ||||||
4.20%, 09/15/20(a) | 3,115 | 3,159,794 | ||||||
5.00%, 04/15/25 (Call 04/15/20)(a)(b) | 26,811 | 27,419,497 | ||||||
Uber Technologies Inc. | ||||||||
7.50%, 11/01/23 (Call 11/01/20)(a)(b) | 11,381 | 11,611,465 | ||||||
7.50%, 09/15/27 (Call 09/15/22)(b) | 27,758 | 27,480,420 | ||||||
8.00%, 11/01/26 (Call 11/01/21)(a)(b) | 33,383 | 33,466,457 | ||||||
VeriSign Inc. | ||||||||
4.63%, 05/01/23 (Call 05/01/20) | 14,104 | 14,358,577 | ||||||
4.75%, 07/15/27 (Call 07/15/22)(a) | 10,807 | 11,428,403 | ||||||
5.25%, 04/01/25 (Call 01/01/25)(a) | 9,636 | 10,573,736 | ||||||
Zayo Group LLC/Zayo Capital Inc. | ||||||||
5.75%, 01/15/27 (Call 01/15/22)(a)(b) | 38,195 | 38,892,059 | ||||||
6.00%, 04/01/23 (Call 04/01/20) | 31,514 | 32,412,464 | ||||||
6.38%, 05/15/25 (Call 05/15/20)(a) | 19,756 | 20,303,735 | ||||||
|
| |||||||
474,786,014 |
Security | Par (000) | Value | ||||||
Iron & Steel — 0.6% | ||||||||
AK Steel Corp., 7.63%, 10/01/21 (Call 12/02/19) | $ | 10,670 | $ | 10,465,349 | ||||
Allegheny Technologies Inc. | ||||||||
5.95%, 01/15/21 (Call 10/15/20) | 8,474 | 8,715,357 | ||||||
7.88%, 08/15/23 (Call 05/15/23)(a) | 12,693 | 13,855,044 | ||||||
Cleveland-Cliffs Inc. | ||||||||
4.88%, 01/15/24 (Call 01/15/21)(b) | 8,304 | 8,571,757 | ||||||
5.75%, 03/01/25 (Call 03/01/20)(a) | 11,413 | 11,303,863 | ||||||
5.88%, 06/01/27 (Call 06/01/22)(a)(b) | 16,166 | 15,404,177 | ||||||
Steel Dynamics Inc. | ||||||||
5.00%, 12/15/26 (Call 12/15/21)(a) | 8,290 | 8,830,508 | ||||||
5.13%, 10/01/21 (Call 12/02/19)(a) | 4,459 | 4,474,607 | ||||||
5.25%, 04/15/23 (Call 04/15/20) | 9,265 | 9,447,405 | ||||||
5.50%, 10/01/24 (Call 10/01/20) | 4,056 | 4,176,260 | ||||||
U.S. Steel Corp. | ||||||||
6.25%, 03/15/26 (Call 03/15/21)(a) | 15,401 | 12,943,154 | ||||||
6.88%, 08/15/25 (Call 08/15/20)(a) | 16,567 | 14,972,758 | ||||||
|
| |||||||
123,160,239 | ||||||||
Leisure Time — 0.3% | ||||||||
Sabre GLBL Inc. | ||||||||
5.25%, 11/15/23 (Call 11/15/19)(b) | 9,870 | 10,116,750 | ||||||
5.38%, 04/15/23 (Call 04/15/20)(b) | 9,216 | 9,457,920 | ||||||
Viking Cruises Ltd., 5.88%, 09/15/27 (Call 09/15/22)(b) | 21,333 | 22,671,646 | ||||||
VOC Escrow Ltd., 5.00%, 02/15/28 (Call 02/15/23)(a)(b) | 13,905 | 14,487,272 | ||||||
|
| |||||||
56,733,588 | ||||||||
Lodging — 2.3% | ||||||||
Boyd Gaming Corp. | ||||||||
6.00%, 08/15/26 (Call 08/15/21)(a) | 14,936 | 15,860,774 | ||||||
6.38%, 04/01/26 (Call 04/01/21)(a) | 16,513 | 17,564,482 | ||||||
6.88%, 05/15/23 (Call 05/15/20) | 13,728 | 14,225,640 | ||||||
Diamond Resorts International Inc. | ||||||||
7.75%, 09/01/23 (Call 09/01/20)(a)(b) | 11,081 | 11,466,508 | ||||||
10.75%, 09/01/24 (Call 09/01/20)(a)(b) | 13,588 | 14,076,319 | ||||||
Hilton Domestic Operating Co. Inc. | ||||||||
4.25%, 09/01/24 (Call 09/01/20)(a) | 20,327 | 20,704,265 | ||||||
4.88%, 01/15/30 (Call 01/15/25)(a)(b) | 23,243 | 24,664,212 | ||||||
5.13%, 05/01/26 (Call 05/01/21)(a) | 31,739 | 33,392,697 | ||||||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. | ||||||||
4.63%, 04/01/25 (Call 04/01/20)(a) | 18,761 | 19,322,798 | ||||||
4.88%, 04/01/27 (Call 04/01/22)(a) | 10,686 | 11,300,231 | ||||||
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., 6.75%, 11/15/21 (Call 11/15/19)(b) | 14,821 | 15,157,841 | ||||||
Marriott Ownership Resorts Inc./ILG LLC, 6.50%, 09/15/26 (Call 09/15/21) | 584 | 629,978 | ||||||
MGM Resorts International | ||||||||
4.63%, 09/01/26 (Call 06/01/26)(a) | 10,173 | 10,678,683 | ||||||
5.50%, 04/15/27 (Call 01/15/27)(a) | 23,532 | 25,890,102 | ||||||
5.75%, 06/15/25 (Call 03/15/25)(a) | 22,916 | 25,436,760 | ||||||
6.00%, 03/15/23(a) | 27,513 | 30,389,484 | ||||||
6.63%, 12/15/21 | 22,999 | 24,953,915 | ||||||
7.75%, 03/15/22 | 18,275 | 20,466,573 | ||||||
Wyndham Destinations Inc. | ||||||||
3.90%, 03/01/23 (Call 12/01/22) | 7,125 | 7,203,877 | ||||||
4.25%, 03/01/22 (Call 12/01/21)(a) | 12,749 | 13,035,853 | ||||||
5.75%, 04/01/27 (Call 01/01/27)(a) | 8,425 | 9,226,253 | ||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. | ||||||||
4.25%, 05/30/23 (Call 02/28/23)(a)(b) | 8,657 | 8,965,694 | ||||||
5.25%, 05/15/27 (Call 02/15/27)(a)(b) | 19,410 | 20,244,781 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Lodging (continued) | ||||||||
5.50%, 03/01/25 (Call 12/01/24)(a)(b) | $ | 39,429 | $ | 41,854,980 | ||||
|
| |||||||
436,712,700 | ||||||||
Machinery — 0.1% | ||||||||
Vertiv Group Corp., 9.25%, 10/15/24 (Call 10/15/20)(b) | 17,527 | 16,519,197 | ||||||
|
| |||||||
Manufacturing — 0.0% | ||||||||
Foxtrot Escrow Issuer LLC/Foxtrot Escrow Corp., 12.25%, 11/15/26 (Call 11/15/22)(b) | 7,317 | 7,354,317 | ||||||
|
| |||||||
Media — 11.9% | ||||||||
Altice Financing SA | ||||||||
6.63%, 02/15/23 (Call 02/15/20)(a)(b) | 44,587 | 45,799,766 | ||||||
7.50%, 05/15/26 (Call 05/15/21)(b) | 63,033 | 67,110,447 | ||||||
Altice Finco SA, 8.13%, 01/15/24 (Call 12/15/19)(b) | 9,013 | 9,297,802 | ||||||
Altice Luxembourg SA | ||||||||
7.63%, 02/15/25 (Call 02/15/20)(a)(b) | 33,763 | 34,860,297 | ||||||
10.50%, 05/15/27 (Call 05/15/22)(a)(b) | 36,568 | 41,367,550 | ||||||
AMC Networks Inc. | ||||||||
4.75%, 12/15/22 (Call 12/15/19) | 12,244 | 12,352,486 | ||||||
4.75%, 08/01/25 (Call 08/01/21)(a) | 17,781 | 17,958,810 | ||||||
5.00%, 04/01/24 (Call 04/01/20)(a) | 23,025 | 23,413,250 | ||||||
Cablevision Systems Corp., 5.88%, 09/15/22(a) | 12,888 | 13,898,585 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | ||||||||
4.00%, 03/01/23 (Call 11/01/19)(a)(b) | 10,229 | 10,408,008 | ||||||
4.75%, 03/01/30 (Call 09/01/24)(a)(b) | 33,448 | 34,078,772 | ||||||
5.00%, 02/01/28 (Call 08/01/22)(a)(b) | 56,578 | 59,167,858 | ||||||
5.13%, 02/15/23 (Call 02/15/20)(a) | 19,322 | 19,663,586 | ||||||
5.13%, 05/01/23 (Call 05/01/20)(b) | 23,297 | 23,847,503 | ||||||
5.13%, 05/01/27 (Call 05/01/22)(a)(b) | 68,571 | 72,256,691 | ||||||
5.25%, 09/30/22 (Call 09/30/20)(a) | 23,463 | 23,756,288 | ||||||
5.38%, 05/01/25 (Call 05/01/20)(a)(b) | 17,174 | 17,825,736 | ||||||
5.38%, 06/01/29 (Call 06/01/24)(a)(b) | 32,416 | 34,563,560 | ||||||
5.50%, 05/01/26 (Call 05/01/21)(a)(b) | 30,488 | 32,164,840 | ||||||
5.75%, 09/01/23 (Call 03/01/20)(a) | 9,502 | 9,699,299 | ||||||
5.75%, 01/15/24 (Call 07/15/20) | 2,276 | 2,332,217 | ||||||
5.75%, 02/15/26 (Call 02/15/21)(a)(b) | 52,031 | 55,030,696 | ||||||
5.88%, 04/01/24 (Call 04/01/20)(b) | 36,458 | 38,007,465 | ||||||
5.88%, 05/01/27 (Call 05/01/21)(a)(b) | 16,091 | 17,073,627 | ||||||
Clear Channel Worldwide Holdings Inc. | ||||||||
5.13%, 08/15/27 (Call 08/15/22)(a)(b) | 10,499 | 10,941,848 | ||||||
9.25%, 02/15/24 (Call 02/15/21)(a)(b) | 44,290 | 48,708,999 | ||||||
CSC Holdings LLC | ||||||||
5.25%, 06/01/24(a) | 15,726 | 16,963,331 | ||||||
5.38%, 07/15/23 (Call 07/15/20)(a)(b) | 21,340 | 21,899,748 | ||||||
5.38%, 02/01/28 (Call 02/01/23)(b) | 22,432 | 23,728,991 | ||||||
5.50%, 05/15/26 (Call 05/15/21)(a)(b) | 30,227 | 31,926,389 | ||||||
5.50%, 04/15/27 (Call 04/15/22)(a)(b) | 28,479 | 30,272,630 | ||||||
5.75%, 01/15/30 (Call 01/15/25)(b) | 49,994 | 52,557,692 | ||||||
6.50%, 02/01/29 (Call 02/01/24)(a)(b) | 37,354 | 41,813,134 | ||||||
6.63%, 10/15/25 (Call 10/15/20)(a)(b) | 21,441 | 22,834,665 | ||||||
6.75%, 11/15/21(a) | 20,248 | 21,817,220 | ||||||
7.50%, 04/01/28 (Call 04/01/23)(b) | 22,189 | 25,045,834 | ||||||
7.75%, 07/15/25 (Call 07/15/20)(b) | 12,408 | 13,308,011 | ||||||
10.88%, 10/15/25 (Call 10/15/20)(a)(b) | 35,175 | 39,693,580 | ||||||
Diamond Sports Group LLC/Diamond Sports Finance Co. | ||||||||
5.38%, 08/15/26 (Call 08/15/22)(a)(b) | 70,229 | 73,389,305 | ||||||
6.63%, 08/15/27 (Call 08/15/22)(a)(b) | 40,834 | 42,110,062 | ||||||
DISH DBS Corp. | 34,121 | 34,184,977 |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
5.88%, 07/15/22(a) | $ | 44,733 | $ | 46,754,261 | ||||
5.88%, 11/15/24(a) | 44,854 | 44,897,010 | ||||||
6.75%, 06/01/21 | 43,490 | 45,718,862 | ||||||
7.75%, 07/01/26(a) | 45,775 | 46,294,546 | ||||||
Gray Television Inc. | ||||||||
5.13%, 10/15/24 (Call 10/15/20)(a)(b) | 11,118 | 11,519,777 | ||||||
5.88%, 07/15/26 (Call 07/15/21)(a)(b) | 15,536 | 16,332,531 | ||||||
7.00%, 05/15/27 (Call 05/15/22)(a)(b) | 18,793 | 20,531,353 | ||||||
iHeartCommunications Inc. | ||||||||
5.25%, 08/15/27 (Call 08/15/22)(b) | 15,381 | 15,878,191 | ||||||
6.38%, 05/01/26 (Call 05/01/22)(a) | 17,521 | 18,820,795 | ||||||
8.38%, 05/01/27 (Call 05/01/22)(a) | 34,960 | 37,464,010 | ||||||
LCPR Senior Secured Financing DAC, 6.75%, 10/15/27 (Call 10/15/22)(b) | 11,353 | 11,634,668 | ||||||
Meredith Corp., 6.88%, 02/01/26 | 30,382 | 31,428,918 | ||||||
Nexstar Broadcasting Inc. | ||||||||
5.63%, 08/01/24 (Call 08/01/20)(a)(b) | 18,949 | 19,778,019 | ||||||
5.63%, 07/15/27 (Call 07/15/22)(a)(b) | 26,439 | 27,951,311 | ||||||
5.88%, 11/15/22 (Call 11/15/19) | 7,889 | 8,043,904 | ||||||
Quebecor Media Inc., 5.75%, 01/15/23(a) | 17,473 | 18,900,908 | ||||||
Sinclair Television Group Inc. | ||||||||
5.13%, 02/15/27 (Call 08/15/21)(a)(b) | 7,905 | 8,003,813 | ||||||
5.63%, 08/01/24 (Call 08/01/20)(a)(b) | 11,369 | 11,708,976 | ||||||
6.13%, 10/01/22 (Call 10/01/20)(a) | 8,614 | 8,726,520 | ||||||
Sirius XM Radio Inc. | ||||||||
3.88%, 08/01/22 (Call 08/01/20)(b) | 20,722 | 21,145,075 | ||||||
4.63%, 05/15/23 (Call 05/15/20)(a)(b) | 9,898 | 10,059,647 | ||||||
4.63%, 07/15/24 (Call 07/15/21)(b) | 31,340 | 32,798,877 | ||||||
5.00%, 08/01/27 (Call 08/01/22)(a)(b) | 35,393 | 37,262,635 | ||||||
5.38%, 04/15/25 (Call 04/15/20)(b) | 22,075 | 22,942,581 | ||||||
5.38%, 07/15/26 (Call 07/15/21)(a)(b) | 21,225 | 22,445,438 | ||||||
5.50%, 07/01/29 (Call 07/01/24)(a)(b) | 29,176 | 31,592,502 | ||||||
TEGNA Inc. | ||||||||
5.00%, 09/15/29 (Call 09/15/24)(b) | 25,808 | 26,168,022 | ||||||
6.38%, 10/15/23 (Call 10/15/20)(a) | 11,226 | 11,573,725 | ||||||
Telenet Finance Luxembourg Notes Sarl, 5.50%, 03/01/28 (Call 12/01/22)(b) | 20,600 | 21,769,050 | ||||||
Univision Communications Inc. | ||||||||
5.13%, 05/15/23 (Call 05/15/20)(a)(b) | 27,155 | 27,217,378 | ||||||
5.13%, 02/15/25 (Call 02/15/20)(a)(b) | 33,655 | 32,891,348 | ||||||
UPC Holding BV, 5.50%, 01/15/28 (Call 10/15/22)(b) | 12,214 | 12,477,443 | ||||||
UPCB Finance IV Ltd., 5.38%, 01/15/25 (Call 01/15/20)(a)(b) | 24,691 | 25,462,594 | ||||||
Viacom Inc. | ||||||||
5.88%, 02/28/57 (Call 02/28/22)(a)(c) | 13,351 | 13,894,776 | ||||||
6.25%, 02/28/57 (Call 02/28/27)(a)(c) | 13,573 | 14,801,357 | ||||||
Videotron Ltd. | ||||||||
5.00%, 07/15/22 | 14,305 | 15,091,775 | ||||||
5.13%, 04/15/27 (Call 04/15/22)(a)(b) | 13,272 | 13,976,743 | ||||||
5.38%, 06/15/24 (Call 03/15/24)(a)(b) | 13,446 | 14,605,718 | ||||||
Virgin Media Finance PLC, 6.00%, 10/15/24 (Call 10/15/20)(a)(b) | 9,653 | 9,954,656 | ||||||
Virgin Media Secured Finance PLC | ||||||||
5.50%, 08/15/26 (Call 08/15/21)(a)(b) | 14,802 | 15,616,135 | ||||||
5.50%, 05/15/29 (Call 05/15/24)(a)(b) | 30,385 | 32,208,100 | ||||||
Ziggo Bond Co. BV | ||||||||
5.88%, 01/15/25 (Call 01/15/20)(a)(b) | 8,027 | 8,287,869 | ||||||
6.00%, 01/15/27 (Call 01/15/22)(b) | 14,863 | 15,574,581 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
Ziggo BV | ||||||||
4.88%, 01/15/30 (Call 10/15/24)(a)(b) | $ | 11,169 | $ | 11,368,478 | ||||
5.50%, 01/15/27 (Call 01/15/22)(a)(b) | 44,284 | 46,655,993 | ||||||
|
| |||||||
2,265,362,424 | ||||||||
Mining — 1.7% | ||||||||
Alcoa Nederland Holding BV | ||||||||
6.13%, 05/15/28 (Call 05/15/23)(a)(b) | 10,543 | 11,368,868 | ||||||
6.75%, 09/30/24 (Call 09/30/20)(a)(b) | 14,089 | 14,849,806 | ||||||
7.00%, 09/30/26 (Call 09/30/21)(b) | 10,260 | 11,159,467 | ||||||
Constellium SE | ||||||||
5.75%, 05/15/24 (Call 05/15/20)(b) | 8,514 | 8,758,778 | ||||||
5.88%, 02/15/26 (Call 11/15/20)(a)(b) | 10,523 | 10,970,228 | ||||||
6.63%, 03/01/25 (Call 03/01/20)(a)(b) | 13,108 | 13,718,177 | ||||||
FMG Resources August 2006 Pty Ltd. | ||||||||
4.50%, 09/15/27 (Call 06/15/27)(a)(b) | 14,767 | 14,610,101 | ||||||
4.75%, 05/15/22 (Call 02/15/22)(a)(b) | 15,703 | 16,232,976 | ||||||
5.13%, 03/15/23 (Call 12/15/22)(a)(b) | 9,425 | 9,837,351 | ||||||
5.13%, 05/15/24 (Call 02/15/24)(a)(b) | 14,873 | 15,616,650 | ||||||
Freeport-McMoRan Inc. | ||||||||
3.55%, 03/01/22 (Call 12/01/21)(a) | 41,854 | 42,111,402 | ||||||
3.88%, 03/15/23 (Call 12/15/22)(a) | 41,923 | 42,633,381 | ||||||
4.55%, 11/14/24 (Call 08/14/24)(a) | 18,759 | 19,462,462 | ||||||
5.00%, 09/01/27 (Call 09/01/22)(a) | 14,407 | 14,681,600 | ||||||
5.25%, 09/01/29 (Call 09/01/24)(a) | 13,932 | 14,162,575 | ||||||
Novelis Corp. | ||||||||
5.88%, 09/30/26 (Call 09/30/21)(a)(b) | 35,897 | 37,785,182 | ||||||
6.25%, 08/15/24 (Call 08/15/20)(a)(b) | 25,258 | 26,518,248 | ||||||
|
| |||||||
324,477,252 | ||||||||
Office & Business Equipment — 0.7% | ||||||||
CDW LLC/CDW Finance Corp. | ||||||||
4.25%, 04/01/28 (Call 10/01/22) | 11,562 | 11,980,515 | ||||||
5.00%, 09/01/25 (Call 03/01/20)(a) | 11,754 | 12,282,130 | ||||||
5.50%, 12/01/24 (Call 06/01/24)(a) | 11,733 | 13,058,676 | ||||||
Pitney Bowes Inc. | ||||||||
4.13%, 10/01/21 (Call 09/01/21) | 12,463 | 12,552,734 | ||||||
4.38%, 05/15/22 (Call 04/15/22) | 8,564 | 8,564,976 | ||||||
4.63%, 03/15/24 (Call 12/15/23)(a) | 11,359 | 10,704,722 | ||||||
5.20%, 04/01/23 (Call 03/01/23) | 8,724 | 8,609,498 | ||||||
Xerox Corp. | ||||||||
4.13%, 03/15/23 (Call 02/15/23)(a) | 21,668 | 22,158,130 | ||||||
4.50%, 05/15/21(a) | 23,696 | 24,303,210 | ||||||
|
| |||||||
124,214,591 | ||||||||
Oil & Gas — 6.9% | ||||||||
Aker BP ASA | ||||||||
4.75%, 06/15/24 (Call 06/15/21)(b) | 18,990 | 19,749,600 | ||||||
5.88%, 03/31/25 (Call 03/31/21)(a)(b) | 6,080 | 6,407,350 | ||||||
6.00%, 07/01/22 (Call 07/01/20)(a)(b) | 3,257 | 3,360,817 | ||||||
American Energy- Permian Basin LLC, 12.00%, 10/01/24 (Call 10/01/21)(b) | 4,911 | 3,480,671 | ||||||
Antero Resources Corp. | ||||||||
5.00%, 03/01/25 (Call 03/01/20)(a) | 12,337 | 8,173,263 | ||||||
5.13%, 12/01/22 (Call 06/01/20) | 26,462 | 19,879,577 | ||||||
5.38%, 11/01/21 (Call 11/01/19)(a) | 24,191 | 21,590,467 | ||||||
5.63%, 06/01/23 (Call 06/01/20)(a) | 14,655 | 10,393,143 | ||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp. | ||||||||
7.00%, 11/01/26 (Call 11/01/21)(b) | 13,310 | 10,049,050 | ||||||
10.00%, 04/01/22 (Call 04/01/20)(b) | 23,582 | 22,284,990 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
California Resources Corp., 8.00%, 12/15/22 (Call 12/15/19)(a)(b) | $ | 38,788 | $ | 11,733,370 | ||||
Callon Petroleum Co. | ||||||||
6.13%, 10/01/24 (Call 10/01/20)(a) | 12,260 | 11,648,456 | ||||||
6.38%, 07/01/26 (Call 07/01/21)(a) | 10,268 | 9,472,230 | ||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 11.00%, 04/15/25 (Call 10/15/21)(a)(b) | 9,269 | 9,245,828 | ||||||
Chesapeake Energy Corp. | ||||||||
7.00%, 10/01/24 (Call 04/01/21) | 17,141 | 11,562,141 | ||||||
7.50%, 10/01/26 (Call 10/01/21) | 6,152 | 3,809,434 | ||||||
8.00%, 01/15/25 (Call 01/15/20) | 3,943 | 2,602,380 | ||||||
8.00%, 03/15/26 (Call 03/15/22)(b) | 17,031 | 10,676,308 | ||||||
8.00%, 06/15/27 (Call 06/15/22)(a) | 3,520 | 2,200,000 | ||||||
Citgo Holding Inc., 9.25%, 08/01/24 (Call 08/01/21)(b) | 29,130 | 30,418,094 | ||||||
CNX Resources Corp. | ||||||||
5.88%, 04/15/22 (Call 04/15/20) | 19,633 | 19,246,946 | ||||||
7.25%, 03/14/27 (Call 03/14/22)(a)(b) | 12,176 | 9,801,680 | ||||||
CrownRock LP/CrownRock Finance Inc., 5.63%, 10/15/25 (Call 10/15/20)(b) | 27,943 | 27,180,388 | ||||||
Denbury Resources Inc. | ||||||||
7.75%, 02/15/24 (Call 08/15/20)(b) | 9,729 | 7,150,815 | ||||||
9.00%, 05/15/21 (Call 12/15/19)(a)(b) | 14,817 | 12,733,359 | ||||||
9.25%, 03/31/22 (Call 03/31/20)(b) | 10,266 | 8,418,120 | ||||||
Diamond Offshore Drilling Inc., 7.88%, 08/15/25 (Call 05/15/25)(a) | 11,249 | 8,992,169 | ||||||
Diamondback Energy Inc. | ||||||||
4.75%, 11/01/24 (Call 11/01/19)(a) | 27,540 | 28,469,475 | ||||||
5.38%, 05/31/25 (Call 05/31/20)(a) | 16,612 | 17,359,540 | ||||||
Endeavor Energy Resources LP/EER Finance Inc. | ||||||||
5.50%, 01/30/26 (Call 01/30/21)(a)(b) | 11,389 | 11,757,222 | ||||||
5.75%, 01/30/28 (Call 01/30/23)(b) | 10,017 | 10,580,995 | ||||||
Extraction Oil & Gas Inc. | ||||||||
5.63%, 02/01/26 (Call 02/01/21)(b) | 16,190 | 6,880,750 | ||||||
7.38%, 05/15/24 (Call 05/15/20)(a)(b) | 8,717 | 3,682,723 | ||||||
Gulfport Energy Corp. | ||||||||
6.00%, 10/15/24 (Call 10/15/20) | 15,970 | 10,174,220 | ||||||
6.38%, 05/15/25 (Call 05/15/20)(a) | 14,438 | 8,771,085 | ||||||
6.38%, 01/15/26 (Call 01/15/21) | 8,286 | 4,971,600 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | ||||||||
5.00%, 12/01/24 (Call 06/01/20)(a)(b) | 10,038 | 8,936,831 | ||||||
5.75%, 10/01/25 (Call 04/01/20)(b) | 11,255 | 9,913,779 | ||||||
6.25%, 11/01/28 (Call 11/01/23)(a)(b) | 14,979 | 13,293,863 | ||||||
Matador Resources Co., 5.88%, 09/15/26 (Call 09/15/21)(a) | 24,432 | 23,454,720 | ||||||
MEG Energy Corp. | ||||||||
6.38%, 01/30/23 (Call 07/30/20)(b) | 18,566 | 17,676,421 | ||||||
6.50%, 01/15/25 (Call 01/15/20)(b) | 17,922 | 18,618,345 | ||||||
7.00%, 03/31/24 (Call 09/30/20)(a)(b) | 23,109 | 21,738,313 | ||||||
Moss Creek Resources Holdings Inc. | ||||||||
7.50%, 01/15/26 (Call 01/15/21)(a)(b) | 14,950 | 10,218,325 | ||||||
10.50%, 05/15/27 (Call 05/15/22)(b) | 12,511 | 9,620,437 | ||||||
Murphy Oil Corp. | ||||||||
4.00%, 06/01/22 (Call 03/01/22)(a) | 10,086 | 10,189,618 | ||||||
4.20%, 12/01/22 (Call 09/01/22)(a) | 11,547 | 11,780,345 | ||||||
5.75%, 08/15/25 (Call 08/18/20)(a) | 13,221 | 13,465,265 | ||||||
6.88%, 08/15/24 (Call 08/15/20)(a) | 11,646 | 12,321,992 | ||||||
Nabors Industries Inc. | ||||||||
4.63%, 09/15/21(a) | 14,608 | 13,473,543 | ||||||
5.00%, 09/15/20(a) | 2,094 | 2,083,530 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
5.50%, 01/15/23 (Call 11/15/22)(a) | $ | 13,849 | $ | 11,582,957 | ||||
5.75%, 02/01/25 (Call 11/01/24)(a) | 17,626 | 13,099,379 | ||||||
Noble Holding International Ltd. | ||||||||
7.88%, 02/01/26 (Call 02/01/21)(b) | 17,240 | 11,434,430 | ||||||
7.95%, 04/01/25 (Call 01/01/25)(a) | 9,363 | 5,293,346 | ||||||
Oasis Petroleum Inc. | ||||||||
6.25%, 05/01/26 (Call 05/01/21)(a)(b) | 8,892 | 6,024,330 | ||||||
6.88%, 03/15/22 (Call 12/02/19) | 21,537 | 18,898,717 | ||||||
Pacific Drilling SA, 8.38%, 10/01/23 (Call 09/01/20)(a)(b) | 17,319 | 13,844,376 | ||||||
Parkland Fuel Corp. | ||||||||
5.88%, 07/15/27 (Call 07/15/22)(a)(b) | 10,509 | 11,155,461 | ||||||
6.00%, 04/01/26 (Call 04/01/21)(a)(b) | 9,716 | 10,288,353 | ||||||
Parsley Energy LLC/Parsley Finance Corp. | ||||||||
5.25%, 08/15/25 (Call 08/15/20)(a)(b) | 9,999 | 10,202,957 | ||||||
5.38%, 01/15/25 (Call 01/15/20)(a)(b) | 14,345 | 14,700,423 | ||||||
5.63%, 10/15/27 (Call 10/15/22)(a)(b) | 14,659 | 15,150,195 | ||||||
6.25%, 06/01/24 (Call 06/01/20)(a)(b) | 8,376 | 8,721,510 | ||||||
PBF Holding Co. LLC/PBF Finance Corp. | ||||||||
7.00%, 11/15/23 (Call 11/15/19)(a) | 9,892 | 10,238,220 | ||||||
7.25%, 06/15/25 (Call 06/15/20)(a) | 16,660 | 17,470,092 | ||||||
PDC Energy Inc. | ||||||||
5.75%, 05/15/26 (Call 05/15/21)(a) | 14,310 | 13,199,401 | ||||||
6.13%, 09/15/24 (Call 09/15/20)(a) | 8,103 | 7,864,974 | ||||||
Puma International Financing SA | ||||||||
5.00%, 01/24/26 (Call 01/24/21)(b) | 10,170 | 9,745,487 | ||||||
5.13%, 10/06/24 (Call 10/06/20)(b) | 9,356 | 9,189,497 | ||||||
QEP Resources Inc. | ||||||||
5.25%, 05/01/23 (Call 02/01/23)(a) | 14,951 | 14,190,957 | ||||||
5.38%, 10/01/22 (Call 07/01/22)(a) | 10,319 | 10,005,560 | ||||||
5.63%, 03/01/26 (Call 12/01/25)(a) | 10,199 | 9,179,100 | ||||||
Range Resources Corp. | ||||||||
4.88%, 05/15/25 (Call 02/15/25)(a) | 15,332 | 12,323,095 | ||||||
5.00%, 08/15/22 (Call 05/15/22)(a) | 13,761 | 12,754,727 | ||||||
5.00%, 03/15/23 (Call 12/15/22)(a) | 18,666 | 16,087,292 | ||||||
5.75%, 06/01/21 (Call 03/01/21)(a) | 10,185 | 10,093,760 | ||||||
Rowan Companies Inc., 4.88%, 06/01/22 (Call 03/01/22)(a) | 13,991 | 9,373,970 | ||||||
Seven Generations Energy Ltd. | ||||||||
5.38%, 09/30/25 (Call 09/30/20)(b) | 15,869 | 15,380,533 | ||||||
6.75%, 05/01/23 (Call 05/01/20)(a)(b) | 8,751 | 8,887,051 | ||||||
6.88%, 06/30/23 (Call 06/30/20)(a)(b) | 8,806 | 8,963,468 | ||||||
SM Energy Co. | ||||||||
5.00%, 01/15/24 (Call 07/15/20)(a) | 9,480 | 8,256,488 | ||||||
5.63%, 06/01/25 (Call 06/01/20)(a) | 9,628 | 8,183,993 | ||||||
6.13%, 11/15/22 (Call 11/15/19)(a) | 10,479 | 9,981,248 | ||||||
6.63%, 01/15/27 (Call 01/15/22)(a) | 13,071 | 11,001,425 | ||||||
6.75%, 09/15/26 (Call 09/15/21)(a) | 11,449 | 9,729,862 | ||||||
Southwestern Energy Co. | ||||||||
6.20%, 01/23/25 (Call 10/23/24)(a) | 19,406 | 16,875,458 | ||||||
7.50%, 04/01/26 (Call 04/01/21) | 18,059 | 15,622,119 | ||||||
7.75%, 10/01/27 (Call 10/01/22)(a) | 9,079 | 7,807,940 | ||||||
Sunoco LP/Sunoco Finance Corp. | ||||||||
4.88%, 01/15/23 (Call 01/15/20) | 22,664 | 23,258,930 | ||||||
5.50%, 02/15/26 (Call 02/15/21)(a) | 17,622 | 18,296,218 | ||||||
5.88%, 03/15/28 (Call 03/15/23)(a) | 8,550 | 9,019,988 | ||||||
6.00%, 04/15/27 (Call 04/15/22) | 13,898 | 14,731,787 | ||||||
Transocean Guardian Ltd., 5.88%, 01/15/24 (Call 07/15/21)(b) | 11,784 | 11,813,059 | ||||||
Transocean Inc. | ||||||||
7.25%, 11/01/25 (Call 11/01/21)(b) | 16,542 | 14,598,315 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
7.50%, 01/15/26 (Call 01/15/21)(a)(b) | $ | 17,557 | $ | 15,501,369 | ||||
9.00%, 07/15/23 (Call 07/15/20)(a)(b) | 25,434 | 25,672,444 | ||||||
Transocean Pontus Ltd., 6.13%, 08/01/25 (Call 08/01/21)(a)(b) | 9,499 | 9,442,594 | ||||||
Transocean Poseidon Ltd., 6.88%, 02/01/27 (Call 02/01/22)(b) | 12,179 | 12,310,168 | ||||||
Transocean Sentry Ltd., 5.38%, 05/15/23 (Call 05/16/21)(a)(b) | 9,952 | 9,861,465 | ||||||
Valaris PLC, 7.75%, 02/01/26 (Call 11/01/25)(a) | 20,725 | 10,880,625 | ||||||
Whiting Petroleum Corp. | ||||||||
5.75%, 03/15/21 (Call 12/15/20)(a) | 17,952 | 16,874,880 | ||||||
6.25%, 04/01/23 (Call 01/01/23) | 11,560 | 8,381,000 | ||||||
6.63%, 01/15/26 (Call 10/15/25)(a) | 21,296 | 13,203,094 | ||||||
WPX Energy Inc. | ||||||||
5.25%, 09/15/24 (Call 06/15/24)(a) | 14,157 | 14,298,570 | ||||||
5.25%, 10/15/27 (Call 09/30/22)(a) | 16,039 | 15,597,927 | ||||||
5.75%, 06/01/26 (Call 06/01/21)(a) | 12,287 | 12,404,293 | ||||||
8.25%, 08/01/23 (Call 06/01/23) | 5,009 | 5,585,035 | ||||||
|
| |||||||
1,316,227,495 | ||||||||
Oil & Gas Services — 0.4% | ||||||||
KCA Deutag UK Finance PLC | ||||||||
9.63%, 04/01/23 (Call 04/01/20)(a)(b) | 7,623 | 4,837,191 | ||||||
9.88%, 04/01/22 (Call 04/01/20)(a)(b) | 10,424 | 6,591,226 | ||||||
SESI LLC | ||||||||
7.13%, 12/15/21 (Call 12/15/19)(a) | 13,444 | 10,234,245 | ||||||
7.75%, 09/15/24 (Call 09/15/20) | 10,196 | 5,669,401 | ||||||
Transocean Phoenix 2 Ltd., 7.75%, 10/15/24 (Call 10/15/20)(b) | 5,757 | 5,944,619 | ||||||
Transocean Proteus Ltd., 6.25%, 12/01/24 (Call 12/01/20)(b) | 7,516 | 7,551,136 | ||||||
USA Compression Partners LP/USA Compression Finance Corp. | ||||||||
6.88%, 04/01/26 (Call 04/01/21)(a) | 14,850 | 14,886,552 | ||||||
6.88%, 09/01/27 (Call 09/01/22)(a)(b) | 18,018 | 18,130,612 | ||||||
|
| |||||||
73,844,982 | ||||||||
Packaging & Containers — 3.5% | ||||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. | ||||||||
4.13%, 08/15/26 (Call 08/15/22)(a)(b) | 10,416 | 10,554,619 | ||||||
4.25%, 09/15/22 (Call 03/15/20)(b) | 15,559 | 15,792,385 | ||||||
4.63%, 05/15/23 (Call 05/15/20)(b) | 21,066 | 21,555,127 | ||||||
5.25%, 08/15/27 (Call 08/15/22)(b) | 18,114 | 18,475,918 | ||||||
6.00%, 02/15/25 (Call 02/15/20)(b) | 35,921 | 37,711,518 | ||||||
Ball Corp. | ||||||||
4.00%, 11/15/23(a) | 20,414 | 21,377,286 | ||||||
4.38%, 12/15/20(a) | 18,054 | 18,403,796 | ||||||
4.88%, 03/15/26 (Call 12/15/25)(a) | 16,907 | 18,365,229 | ||||||
5.00%, 03/15/22(a) | 16,477 | 17,424,427 | ||||||
5.25%, 07/01/25 | 21,479 | 23,895,387 | ||||||
Berry Global Inc. | ||||||||
4.50%, 02/15/26 (Call 02/15/21)(a)(b) | 12,456 | 12,494,925 | ||||||
4.88%, 07/15/26 (Call 07/15/22)(b) | 26,722 | 28,100,577 | ||||||
5.13%, 07/15/23 (Call 07/15/20)(a) | 16,916 | 17,338,900 | ||||||
5.50%, 05/15/22 (Call 05/15/20)(a) | 11,240 | 11,420,627 | ||||||
5.63%, 07/15/27 (Call 07/15/22)(a)(b) | 11,055 | 11,709,594 | ||||||
6.00%, 10/15/22 (Call 10/15/20)(a) | 6,830 | 6,953,082 | ||||||
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 01/15/23 | 21,143 | 22,133,784 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Packaging & Containers (continued) | ||||||||
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 09/30/26 (Call 03/31/26)(a) | $ | 8,754 | $ | 9,130,422 | ||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 02/01/26 (Call 02/01/21)(a) | 19,722 | 20,681,870 | ||||||
Flex Acquisition Co. Inc. | ||||||||
6.88%, 01/15/25 (Call 01/15/20)(a)(b) | 14,075 | 13,299,116 | ||||||
7.88%, 07/15/26 (Call 07/15/21)(a)(b) | 10,918 | 10,322,060 | ||||||
Graphic Packaging International LLC, 4.75%, 04/15/21 (Call 01/15/21)(a) | 234 | 240,611 | ||||||
LABL Escrow Issuer LLC | ||||||||
6.75%, 07/15/26 (Call 07/15/22)(b) | 15,946 | 16,584,990 | ||||||
10.50%, 07/15/27 (Call 07/15/22)(a)(b) | 15,744 | 15,853,060 | ||||||
Mauser Packaging Solutions Holding Co. | ||||||||
5.50%, 04/15/24 (Call 04/15/20)(a)(b) | 32,217 | 33,145,352 | ||||||
7.25%, 04/15/25 (Call 04/15/20)(a)(b) | 31,482 | 30,104,662 | ||||||
Owens-Brockway Glass Container Inc. | ||||||||
5.00%, 01/15/22(a)(b) | 9,611 | 9,923,358 | ||||||
5.88%, 08/15/23(a)(b) | 15,386 | 16,251,463 | ||||||
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu | ||||||||
5.13%, 07/15/23 (Call 07/15/20)(b) | 37,850 | 38,831,852 | ||||||
5.75%, 10/15/20 (Call 12/02/19) | 27,400 | 27,494,111 | ||||||
7.00%, 07/15/24 (Call 07/15/20)(b) | 20,940 | 21,682,061 | ||||||
Sealed Air Corp. | ||||||||
4.88%, 12/01/22 (Call 09/01/22)(a)(b) | 8,755 | 9,236,525 | ||||||
5.13%, 12/01/24 (Call 09/01/24)(a)(b) | 9,193 | 9,890,807 | ||||||
5.25%, 04/01/23 (Call 01/01/23)(a)(b) | 7,908 | 8,462,874 | ||||||
5.50%, 09/15/25 (Call 06/15/25)(a)(b) | 8,246 | 8,974,182 | ||||||
6.50%, 12/01/20 (Call 09/01/20)(a)(b) | 7,057 | 7,293,602 | ||||||
Trivium Packaging Finance BV | ||||||||
5.50%, 08/15/26 (Call 08/15/22)(a)(b) | 24,667 | 25,838,682 | ||||||
8.50%, 08/15/27 (Call 08/15/22)(a)(b) | 15,433 | 16,455,436 | ||||||
|
| |||||||
663,404,277 | ||||||||
Pharmaceuticals — 4.0% | ||||||||
Bausch Health Americas Inc. | ||||||||
8.50%, 01/31/27 (Call 01/17/22)(a)(b) | 37,681 | 42,408,865 | ||||||
9.25%, 04/01/26 (Call 04/01/22)(a)(b) | 32,631 | 37,063,549 | ||||||
Bausch Health Companies Inc. | ||||||||
5.50%, 03/01/23 (Call 03/01/20)(a)(b) | 8,656 | 8,744,927 | ||||||
5.50%, 11/01/25 (Call 11/01/20)(b) | 38,659 | 40,392,771 | ||||||
5.75%, 08/15/27 (Call 08/15/22)(a)(b) | 10,674 | 11,611,311 | ||||||
5.88%, 05/15/23 (Call 05/15/20)(b) | 29,585 | 30,028,775 | ||||||
6.13%, 04/15/25 (Call 04/15/20)(a)(b) | 70,738 | 73,655,943 | ||||||
6.50%, 03/15/22 (Call 03/15/20)(b) | 26,586 | 27,317,115 | ||||||
7.00%, 03/15/24 (Call 03/15/20)(b) | 41,504 | 43,472,327 | ||||||
7.00%, 01/15/28 (Call 01/15/23)(a)(b) | 16,544 | 17,884,208 | ||||||
7.25%, 05/30/29 (Call 05/30/24)(a)(b) | 17,654 | 19,473,465 | ||||||
9.00%, 12/15/25 (Call 12/15/21)(a)(b) | 35,175 | 39,578,910 | ||||||
Elanco Animal Health Inc. | ||||||||
3.91%, 08/27/21 | 7,511 | 7,707,753 | ||||||
4.27%, 08/28/23 (Call 07/28/23)(a) | 16,397 | 17,165,464 | ||||||
4.90%, 08/28/28 (Call 05/28/28)(a) | 16,702 | 18,152,565 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco Inc. | ||||||||
6.00%, 07/15/23 (Call 07/15/20)(a)(b) | 31,357 | 20,695,620 | ||||||
6.00%, 02/01/25 (Call 02/01/20)(a)(b) | 25,717 | 15,960,613 | ||||||
Mallinckrodt International Finance SA, 4.75%, 04/15/23(a) | 6,691 | 2,077,105 | ||||||
Mallinckrodt International Finance SA/Mallinckrodt CB LLC | ||||||||
5.50%, 04/15/25 (Call 04/15/20)(a)(b) | 12,067 | 3,959,484 |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
5.63%, 10/15/23 (Call 10/15/20)(a)(b) | $ | 13,738 | $ | 4,739,610 | ||||
5.75%, 08/01/22 (Call 08/01/20)(b) | 13,882 | 5,486,861 | ||||||
Par Pharmaceutical Inc., 7.50%, 04/01/27 (Call 04/01/22)(a)(b) | 33,889 | 32,309,952 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | ||||||||
2.20%, 07/21/21(a) | 67,260 | 63,914,037 | ||||||
2.80%, 07/21/23(a) | 68,175 | 58,886,156 | ||||||
3.15%, 10/01/26(a) | 80,254 | 60,792,405 | ||||||
6.00%, 04/15/24 (Call 01/15/24)(a) | 27,284 | 25,612,855 | ||||||
6.75%, 03/01/28 (Call 12/01/27)(a) | 27,676 | 24,865,965 | ||||||
|
| |||||||
753,958,611 | ||||||||
Pipelines — 3.5% | ||||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. | ||||||||
5.38%, 09/15/24 (Call 09/15/20)(a) | 17,389 | 14,179,281 | ||||||
5.75%, 03/01/27 (Call 03/01/22)(a)(b) | 15,134 | 11,312,665 | ||||||
5.75%, 01/15/28 (Call 01/15/23)(a)(b) | 13,136 | 9,654,960 | ||||||
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.13%, 11/15/22 (Call 11/15/19)(b) | 21,080 | 20,721,697 | ||||||
Buckeye Partners LP | ||||||||
4.15%, 07/01/23 (Call 04/01/23) | 994 | 998,970 | ||||||
6.38%, 01/22/78 (Call 01/22/23)(c) | 8,752 | 6,379,770 | ||||||
Cheniere Corpus Christi Holdings LLC | ||||||||
5.13%, 06/30/27 (Call 01/01/27) | 18,222 | 19,650,978 | ||||||
5.88%, 03/31/25 (Call 10/02/24) | 18,570 | 20,591,159 | ||||||
7.00%, 06/30/24 (Call 01/01/24) | 14,916 | 17,153,400 | ||||||
Cheniere Energy Partners LP | ||||||||
4.50%, 10/01/29 (Call 10/01/24)(b) | 31,011 | 31,546,994 | ||||||
5.25%, 10/01/25 (Call 10/01/20) | 33,260 | 34,496,806 | ||||||
5.63%, 10/01/26 (Call 10/01/21)(a) | 25,577 | 27,015,706 | ||||||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. | ||||||||
5.63%, 05/01/27 (Call 05/01/22)(b) | 14,877 | 15,009,093 | ||||||
5.75%, 04/01/25 (Call 04/01/20)(a) | 10,280 | 10,639,800 | ||||||
6.25%, 04/01/23 (Call 04/01/20) | 15,637 | 15,945,049 | ||||||
DCP Midstream Operating LP | ||||||||
3.88%, 03/15/23 (Call 12/15/22)(a) | 11,720 | 11,857,344 | ||||||
4.75%, 09/30/21 (Call 06/30/21)(b) | 11,814 | 12,080,225 | ||||||
5.13%, 05/15/29 (Call 02/15/29)(a) | 14,118 | 14,323,332 | ||||||
5.38%, 07/15/25 (Call 04/15/25)(a) | 19,272 | 20,238,009 | ||||||
5.85%, 05/21/43 (Call 05/21/23)(a)(b)(c) | 9,908 | 8,943,060 | ||||||
EnLink Midstream Partners LP | ||||||||
4.15%, 06/01/25 (Call 03/01/25)(a) | 19,417 | 17,594,083 | ||||||
4.40%, 04/01/24 (Call 01/01/24)(a) | 11,280 | 10,605,449 | ||||||
4.85%, 07/15/26 (Call 04/15/26)(a) | 11,632 | 10,634,689 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | ||||||||
6.00%, 05/15/23 (Call 05/15/20) | 10,122 | 9,872,493 | ||||||
6.25%, 05/15/26 (Call 02/15/21)(a) | 11,373 | 10,520,025 | ||||||
6.50%, 10/01/25 (Call 10/01/20) | 10,953 | 10,405,350 | ||||||
6.75%, 08/01/22 (Call 08/01/20)(a) | 18,182 | 18,339,229 | ||||||
Global Partners LP/GLP Finance Corp., 7.00%, 08/01/27 (Call 08/01/22)(a)(b) | 9,579 | 10,008,115 | ||||||
NGL Energy Partners LP/NGL Energy Finance Corp. | ||||||||
7.50%, 11/01/23 (Call 11/01/19) | 13,339 | 13,255,898 | ||||||
7.50%, 04/15/26 (Call 04/15/22)(b) | 11,278 | 10,748,322 | ||||||
NuStar Logistics LP | ||||||||
4.80%, 09/01/20 | 845 | 853,810 | ||||||
5.63%, 04/28/27 (Call 01/28/27) | 14,446 | 15,011,802 | ||||||
6.00%, 06/01/26 (Call 03/01/26) | 9,765 | 10,469,087 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
SemGroup Corp./Rose Rock Finance Corp., 5.63%, 07/15/22 (Call 07/15/20)(a) | $ | 9,795 | $ | 9,925,336 | ||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. | ||||||||
4.75%, 10/01/23 (Call 10/01/20)(a)(b) | 11,453 | 11,221,738 | ||||||
5.50%, 09/15/24 (Call 09/15/20)(a)(b) | 16,707 | 16,310,209 | ||||||
5.50%, 01/15/28 (Call 01/15/23)(a)(b) | 17,372 | 16,329,680 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | ||||||||
4.25%, 11/15/23 (Call 05/15/20) | 12,159 | 12,256,074 | ||||||
5.00%, 01/15/28 (Call 01/15/23)(a) | 17,264 | 17,098,554 | ||||||
5.13%, 02/01/25 (Call 02/01/20)(a) | 10,058 | 10,339,410 | ||||||
5.25%, 05/01/23 (Call 11/01/19) | 12,128 | 12,225,479 | ||||||
5.38%, 02/01/27 (Call 02/01/22)(a) | 9,030 | 9,293,990 | ||||||
5.88%, 04/15/26 (Call 04/15/21) | 20,240 | 21,206,930 | ||||||
6.50%, 07/15/27 (Call 07/15/22)(b) | 16,515 | 17,727,531 | ||||||
6.75%, 03/15/24 (Call 09/15/20)(a) | 11,242 | 11,673,327 | ||||||
6.88%, 01/15/29 (Call 01/15/24)(a)(b) | 19,120 | 20,621,494 | ||||||
|
| |||||||
657,286,402 | ||||||||
Real Estate — 0.5% | ||||||||
Howard Hughes Corp. (The), 5.38%, 03/15/25 (Call 03/15/20)(a)(b) | 21,565 | 22,376,383 | ||||||
Kennedy-Wilson Inc., 5.88%, 04/01/24 (Call 04/01/20)(a) | 27,856 | 28,830,960 | ||||||
Realogy Group LLC/Realogy Co-Issuer Corp. | ||||||||
4.88%, 06/01/23 (Call 03/01/23)(a)(b) | 11,478 | 11,192,198 | ||||||
5.25%, 12/01/21 (Call 12/01/19)(b) | 13,437 | 13,513,516 | ||||||
9.38%, 04/01/27 (Call 04/01/22)(a)(b) | 12,963 | 12,736,147 | ||||||
|
| |||||||
88,649,204 | ||||||||
Real Estate Investment Trusts — 3.2% | ||||||||
Brookfield Property REIT Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL, 5.75%, 05/15/26 (Call 05/15/22)(b) | 23,217 | 24,261,765 | ||||||
CBL & Associates LP | ||||||||
5.25%, 12/01/23 (Call 09/01/23)(a) | 8,609 | 6,028,022 | ||||||
5.95%, 12/15/26 (Call 09/15/26)(a) | 11,432 | 7,634,879 | ||||||
CyrusOne LP/CyrusOne Finance Corp. | ||||||||
5.00%, 03/15/24 (Call 03/15/20) | 7,963 | 8,211,844 | ||||||
5.38%, 03/15/27 (Call 03/15/22) | 7,406 | 7,905,133 | ||||||
Equinix Inc. | ||||||||
5.38%, 01/01/22 (Call 01/01/20) | 13,137 | 13,392,952 | ||||||
5.38%, 04/01/23 (Call 04/01/20) | 6,782 | 6,924,761 | ||||||
5.38%, 05/15/27 (Call 05/15/22)(a) | 15,039 | 16,317,315 | ||||||
5.75%, 01/01/25 (Call 01/01/20)(a) | 5,040 | 5,210,100 | ||||||
5.88%, 01/15/26 (Call 01/15/21)(a) | 22,232 | 23,640,691 | ||||||
ESH Hospitality Inc. | ||||||||
4.63%, 10/01/27 (Call 10/01/22)(b) | 16,462 | 16,551,558 | ||||||
5.25%, 05/01/25 (Call 05/01/20)(b) | 29,200 | 30,156,090 | ||||||
Iron Mountain Inc. | ||||||||
4.38%, 06/01/21 (Call 06/01/20)(a)(b) | 10,842 | 10,941,365 | ||||||
4.88%, 09/15/27 (Call 09/15/22)(a)(b) | 22,728 | 23,455,782 | ||||||
4.88%, 09/15/29 (Call 09/15/24)(a)(b) | 23,044 | 23,542,760 | ||||||
5.25%, 03/15/28 (Call 12/27/22)(a)(b) | 16,896 | 17,751,360 | ||||||
5.75%, 08/15/24 (Call 08/15/20)(a) | 20,363 | 20,566,630 | ||||||
6.00%, 08/15/23 (Call 08/15/20)(a) | 11,549 | 11,816,328 | ||||||
iStar Inc. | ||||||||
4.75%, 10/01/24 (Call 07/01/24) | 15,081 | 15,533,430 | ||||||
5.25%, 09/15/22 (Call 09/15/20)(a) | 9,184 | 9,403,268 |
Security | Par (000) | Value | ||||||
Real Estate Investment Trusts (continued) | ||||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. | ||||||||
5.25%, 03/15/22 (Call 09/15/21)(b) | $ | 10,248 | $ | 10,619,490 | ||||
5.25%, 10/01/25 (Call 10/01/20)(b) | 11,109 | 11,323,376 | ||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc. | ||||||||
4.50%, 09/01/26 (Call 06/01/26)(a) | 10,219 | 10,874,735 | ||||||
5.63%, 05/01/24 (Call 02/01/24) | 22,746 | 25,109,785 | ||||||
5.75%, 02/01/27 (Call 11/01/26)(a)(b) | 15,996 | 18,091,406 | ||||||
MPT Operating Partnership LP/MPT Finance Corp. | ||||||||
4.63%, 08/01/29 (Call 08/01/24) | 18,162 | 18,884,933 | ||||||
5.00%, 10/15/27 (Call 09/07/22) | 32,919 | 34,783,657 | ||||||
5.25%, 08/01/26 (Call 08/01/21) | 10,375 | 10,915,524 | ||||||
6.38%, 03/01/24 (Call 03/01/20)(a) | 9,814 | 10,280,646 | ||||||
Ryman Hospitality Properties Inc., 4.75%, 10/15/27 (Call 10/15/22)(b) | 10,422 | 10,774,785 | ||||||
SBA Communications Corp. | ||||||||
4.00%, 10/01/22 (Call 10/01/20)(a) | 13,784 | 14,061,748 | ||||||
4.88%, 07/15/22 (Call 07/15/20) | 14,858 | 15,062,297 | ||||||
4.88%, 09/01/24 (Call 09/01/20)(a) | 24,277 | 25,217,734 | ||||||
Senior Housing Properties Trust, 4.75%, 02/15/28 (Call 08/15/27)(a) | 9,617 | 9,880,660 | ||||||
Starwood Property Trust Inc. | ||||||||
3.63%, 02/01/21 (Call 11/01/20)(a) | 8,600 | 8,659,189 | ||||||
4.75%, 03/15/25 (Call 09/15/24) | 10,207 | 10,599,331 | ||||||
5.00%, 12/15/21 (Call 09/15/21)(a) | 13,113 | 13,637,520 | ||||||
Uniti Group LP/Uniti Fiber Holdings Inc./CSL Capital LLC, 7.13%, 12/15/24 | 9,986 | 8,313,345 | ||||||
Uniti Group LP/Uniti Group Finance Inc./CSL Capital LLC | ||||||||
6.00%, 04/15/23 (Call 04/15/20)(a)(b) | 10,302 | 9,816,948 | ||||||
8.25%, 10/15/23 (Call 04/15/20)(a) | 20,016 | 17,163,720 | ||||||
Washington Prime Group LP, 6.45%, 08/15/24 (Call 06/15/24)(a) | 17,667 | 16,960,320 | ||||||
|
| |||||||
610,277,182 | ||||||||
Retail — 3.5% | ||||||||
1011778 BC ULC/New Red Finance Inc. | ||||||||
3.88%, 01/15/28 (Call 09/15/22)(a)(b) | 15,168 | 15,267,350 | ||||||
4.25%, 05/15/24 (Call 05/15/20)(a)(b) | 31,926 | 32,764,057 | ||||||
5.00%, 10/15/25 (Call 10/15/20)(b) | 66,047 | 68,193,527 | ||||||
Beacon Roofing Supply Inc., 4.88%, 11/01/25 (Call 11/01/20)(a)(b) | 30,114 | 29,699,933 | ||||||
eG Global Finance PLC | ||||||||
6.75%, 02/07/25 (Call 05/15/21)(b) | 9,084 | 9,086,901 | ||||||
8.50%, 10/30/25 (Call 10/30/21)(b) | 14,106 | 14,836,279 | ||||||
Ferrellgas LP/Ferrellgas Finance Corp. | ||||||||
6.50%, 05/01/21 (Call 12/02/19)(a) | 7,337 | 6,206,995 | ||||||
6.75%, 01/15/22 (Call 11/15/19)(a) | 8,145 | 6,869,798 | ||||||
6.75%, 06/15/23 (Call 06/15/20)(a) | 8,968 | 7,577,960 | ||||||
Golden Nugget Inc. | ||||||||
6.75%, 10/15/24 (Call 10/15/20)(a)(b) | 30,139 | 31,121,531 | ||||||
8.75%, 10/01/25 (Call 10/01/20)(a)(b) | 16,946 | 17,856,834 | ||||||
JC Penney Corp. Inc. | ||||||||
5.88%, 07/01/23 (Call 07/01/20)(b) | 11,648 | 10,257,520 | ||||||
8.63%, 03/15/25 (Call 03/15/21)(a)(b) | 6,837 | 4,382,090 | ||||||
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC | ||||||||
4.75%, 06/01/27 (Call 06/01/22)(a)(b) | 16,300 | 17,044,571 | ||||||
5.00%, 06/01/24 (Call 06/01/20)(a)(b) | 20,042 | 20,818,628 | ||||||
5.25%, 06/01/26 (Call 06/01/21)(a)(b) | 22,471 | 23,760,179 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
L Brands Inc. | ||||||||
5.25%, 02/01/28(a) | $ | 9,618 | $ | 8,965,770 | ||||
5.63%, 02/15/22(a) | 17,624 | 18,611,222 | ||||||
5.63%, 10/15/23(a) | 10,434 | 11,069,449 | ||||||
6.63%, 04/01/21 | 7,236 | 7,621,920 | ||||||
7.50%, 06/15/29 (Call 06/15/24)(a) | 13,762 | 13,691,272 | ||||||
Neiman Marcus Group Ltd. LLC/Neiman Marcus Group LLC/Mariposa Borrower/NMG | ||||||||
8.00%, 10/25/24 (Call 12/02/19)(b) | 9,968 | 2,691,360 | ||||||
8.75%, 10/25/24 (Call 12/02/19)(a)(b) | 5,656 | 1,542,438 | ||||||
Penske Automotive Group Inc. | ||||||||
5.50%, 05/15/26 (Call 05/15/21)(a) | 10,485 | 11,005,378 | ||||||
5.75%, 10/01/22 (Call 10/01/20)(a) | 9,273 | 9,381,958 | ||||||
PetSmart Inc. | ||||||||
5.88%, 06/01/25 (Call 06/01/20)(b) | 26,547 | 26,168,838 | ||||||
7.13%, 03/15/23 (Call 03/15/20)(b) | 44,281 | 40,959,925 | ||||||
8.88%, 06/01/25 (Call 06/01/20)(a)(b) | 13,719 | 12,764,387 | ||||||
QVC Inc. | ||||||||
4.38%, 03/15/23 | 14,523 | 15,104,459 | ||||||
4.45%, 02/15/25 (Call 11/15/24) | 12,800 | 13,422,998 | ||||||
4.85%, 04/01/24(a) | 12,984 | 13,822,438 | ||||||
5.13%, 07/02/22 | 9,002 | 9,493,055 | ||||||
Rite Aid Corp., 6.13%, 04/01/23 (Call 04/01/20)(a)(b) | 33,727 | 28,658,253 | ||||||
Staples Inc. | ||||||||
7.50%, 04/15/26 (Call 04/15/22)(b) | 44,803 | 46,704,399 | ||||||
10.75%, 04/15/27 (Call 04/15/22)(a)(b) | 23,028 | 23,949,120 | ||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.50%, 06/01/24 (Call 06/01/20)(a) | 10,548 | 10,808,536 | ||||||
Yum! Brands Inc., 4.75%, 01/15/30 (Call 10/15/29)(a)(b) | 17,867 | 18,712,109 | ||||||
|
| |||||||
660,893,437 | ||||||||
Semiconductors — 0.1% | ||||||||
Qorvo Inc., 5.50%, 07/15/26 (Call 07/15/21)(a) | 416 | 444,592 | ||||||
Sensata Technologies UK Financing Co. PLC, 6.25%, 02/15/26 (Call 02/15/21)(b) | 14,652 | 15,695,955 | ||||||
|
| |||||||
16,140,547 | ||||||||
Software — 2.2% | ||||||||
CDK Global Inc. | ||||||||
4.88%, 06/01/27 (Call 06/01/22) | 13,503 | 14,185,172 | ||||||
5.00%, 10/15/24 (Call 07/15/24)(a) | 8,422 | 9,108,393 | ||||||
5.25%, 05/15/29 (Call 05/15/24)(b) | 11,214 | 11,900,858 | ||||||
5.88%, 06/15/26 (Call 06/15/21)(a) | 10,015 | 10,719,701 | ||||||
Change Healthcare Holdings LLC/Change Healthcare Finance Inc., 5.75%, 03/01/25 (Call 03/01/20)(a)(b) | 20,417 | 20,890,674 | ||||||
Dun & Bradstreet Corp./The | ||||||||
6.88%, 08/15/26 (Call 02/15/22)(a)(b) | 15,208 | 16,638,312 | ||||||
10.25%, 02/15/27 (Call 02/15/22)(a)(b) | 17,377 | 19,053,707 | ||||||
Infor U.S. Inc., 6.50%, 05/15/22 (Call 05/15/20) | 34,787 | 35,326,198 | ||||||
IQVIA Inc. | ||||||||
5.00%, 10/15/26 (Call 10/15/21)(a)(b) | 21,992 | 23,219,371 | ||||||
5.00%, 05/15/27 (Call 05/15/22)(a)(b) | 24,039 | 25,451,291 | ||||||
MSCI Inc. | ||||||||
4.75%, 08/01/26 (Call 08/01/21)(a)(b) | 9,414 | 9,890,687 | ||||||
5.25%, 11/15/24 (Call 11/15/19)(a)(b) | 15,635 | 16,089,197 | ||||||
5.38%, 05/15/27 (Call 05/15/22)(a)(b) | 10,867 | 11,660,194 | ||||||
5.75%, 08/15/25 (Call 08/15/20)(a)(b) | 16,346 | 17,183,733 | ||||||
Open Text Corp. | ||||||||
5.63%, 01/15/23 (Call 01/15/20)(b) | 14,443 | 14,749,914 | ||||||
5.88%, 06/01/26 (Call 06/01/21)(a)(b) | 19,725 | 21,069,555 |
Security | Par (000) | Value | ||||||
Software (continued) | ||||||||
Rackspace Hosting Inc., 8.63%, 11/15/24 (Call 11/15/19)(a)(b) | $ | 28,105 | $ | 25,645,813 | ||||
Solera LLC/Solera Finance Inc., 10.50%, 03/01/24 (Call 03/01/20)(a)(b) | 46,997 | 49,077,938 | ||||||
SS&C Technologies Inc., 5.50%, 09/30/27 (Call 03/30/22)(a)(b) | 46,855 | 49,998,736 | ||||||
Veritas U.S. Inc./Veritas Bermuda Ltd. | ||||||||
7.50%, 02/01/23 (Call 02/01/20)(a)(b) | 8,795 | 8,644,228 | ||||||
10.50%, 02/01/24 (Call 02/01/20)(a)(b) | 17,308 | 16,356,060 | ||||||
|
| |||||||
426,859,732 | ||||||||
Telecommunications — 9.8% | ||||||||
Altice France SA/France | ||||||||
5.50%, 01/15/28 (Call 09/15/22)(b) | 24,206 | 24,613,980 | ||||||
7.38%, 05/01/26 (Call 05/01/21)(a)(b) | 117,191 | 125,493,396 | ||||||
8.13%, 02/01/27 (Call 02/01/22)(a)(b) | 40,045 | 44,393,639 | ||||||
CenturyLink Inc. | ||||||||
5.63%, 04/01/25 (Call 01/01/25)(a) | 11,804 | 12,457,106 | ||||||
Series S, 6.45%, 06/15/21 | 27,010 | 28,428,025 | ||||||
Series T, 5.80%, 03/15/22(a) | 32,134 | 33,942,318 | ||||||
Series W, 6.75%, 12/01/23(a) | 15,851 | 17,655,636 | ||||||
Series Y, 7.50%, 04/01/24 (Call 01/01/24)(a) | 22,332 | 25,346,820 | ||||||
Cincinnati Bell Inc., 7.00%, 07/15/24 (Call 09/15/20)(a)(b) | 15,042 | 13,564,436 | ||||||
CommScope Inc. | ||||||||
5.00%, 06/15/21 (Call 11/12/19)(a)(b) | 5,255 | 5,255,000 | ||||||
5.50%, 03/01/24 (Call 03/01/21)(a)(b) | 29,016 | 29,480,256 | ||||||
5.50%, 06/15/24 (Call 06/15/20)(a)(b) | 13,541 | 12,813,171 | ||||||
6.00%, 03/01/26 (Call 03/01/22)(a)(b) | 31,892 | 32,739,689 | ||||||
8.25%, 03/01/27 (Call 03/01/22)(a)(b) | 24,208 | 22,796,586 | ||||||
CommScope Technologies LLC | ||||||||
5.00%, 03/15/27 (Call 03/15/22)(a)(b) | 16,154 | 13,170,558 | ||||||
6.00%, 06/15/25 (Call 06/15/20)(a)(b) | 32,492 | 28,826,633 | ||||||
Connect Finco SARL/Connect U.S. Finco LLC, 6.75%, 10/01/26 (Call 10/01/22)(a)(b) | 24,766 | 25,665,117 | ||||||
Frontier Communications Corp. | ||||||||
6.88%, 01/15/25 (Call 10/15/24)(a) | 16,900 | 7,564,511 | ||||||
7.13%, 01/15/23 | 14,528 | 6,563,024 | ||||||
7.63%, 04/15/24(a) | 16,441 | 7,478,942 | ||||||
8.00%, 04/01/27 (Call 04/01/22)(a)(b) | 32,671 | 34,304,550 | ||||||
8.50%, 04/01/26 (Call 04/01/21)(a)(b) | 33,298 | 33,422,868 | ||||||
8.75%, 04/15/22 | 10,001 | 4,669,217 | ||||||
10.50%, 09/15/22 (Call 06/15/22) | 44,424 | 21,014,636 | ||||||
11.00%, 09/15/25 (Call 06/15/25) | 72,878 | 34,110,052 | ||||||
Gogo Intermediate Holdings LLC/Gogo Finance Co. Inc., 9.88%, 05/01/24 (Call 05/01/21)(a)(b) | 11,795 | 12,413,648 | ||||||
Hughes Satellite Systems Corp. | ||||||||
5.25%, 08/01/26(a) | 16,795 | 17,991,644 | ||||||
6.63%, 08/01/26(a) | 17,959 | 19,491,192 | ||||||
7.63%, 06/15/21(a) | 19,021 | 20,495,128 | ||||||
Inmarsat Finance PLC | ||||||||
4.88%, 05/15/22 (Call 05/15/20)(b) | 19,721 | 19,970,853 | ||||||
6.50%, 10/01/24 (Call 10/01/20)(a)(b) | 6,773 | 7,121,810 | ||||||
Intelsat Connect Finance SA, 9.50%, 02/15/23 (Call 08/15/20)(a)(b) | 29,001 | 27,188,438 | ||||||
Intelsat Jackson Holdings SA | ||||||||
5.50%, 08/01/23 (Call 08/01/20)(a) | 44,897 | 41,952,457 | ||||||
8.00%, 02/15/24 (Call 02/15/20)(a)(b) | 31,837 | 32,742,390 | ||||||
8.50%, 10/15/24 (Call 10/15/20)(a)(b) | 64,714 | 65,199,355 | ||||||
9.50%, 09/30/22(a)(b) | 10,877 | 12,576,531 | ||||||
9.75%, 07/15/25 (Call 07/15/21)(b) | 41,937 | 43,457,216 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
Intelsat Luxembourg SA, 8.13%, 06/01/23 (Call 06/01/20)(a) | $ | 22,527 | $ | 19,147,950 | ||||
Koninklijke KPN NV, 7.00%, 03/28/73 (Call 03/28/23)(b)(c) | 12,672 | 13,828,320 | ||||||
Level 3 Financing Inc. | ||||||||
4.63%, 09/15/27 (Call 09/15/22)(a)(b) | 22,060 | 22,446,050 | ||||||
5.13%, 05/01/23 (Call 05/01/20) | 16,695 | 16,903,688 | ||||||
5.25%, 03/15/26 (Call 03/15/21)(a) | 17,708 | 18,477,590 | ||||||
5.38%, 08/15/22 (Call 12/02/19) | 15,099 | 15,151,925 | ||||||
5.38%, 01/15/24 (Call 01/15/20)(a) | 19,232 | 19,596,760 | ||||||
5.38%, 05/01/25 (Call 05/01/20)(a) | 19,830 | 20,539,773 | ||||||
5.63%, 02/01/23 (Call 02/01/20) | 9,227 | 9,308,380 | ||||||
Nokia OYJ | ||||||||
3.38%, 06/12/22 | 9,945 | 10,056,881 | ||||||
4.38%, 06/12/27(a) | 10,451 | 10,659,497 | ||||||
Qwest Corp., 6.75%, 12/01/21(a) | 20,327 | 21,880,111 | ||||||
Sprint Communications Inc. | ||||||||
6.00%, 11/15/22 | 52,781 | 55,881,884 | ||||||
11.50%, 11/15/21 | 21,940 | 25,329,925 | ||||||
Sprint Corp. | ||||||||
7.13%, 06/15/24 | 58,059 | 63,066,589 | ||||||
7.25%, 09/15/21 | 46,869 | 50,012,035 | ||||||
7.63%, 02/15/25 (Call 11/15/24)(a) | 33,454 | 36,844,563 | ||||||
7.63%, 03/01/26 (Call 11/01/25) | 34,038 | 37,700,884 | ||||||
7.88%, 09/15/23 | 94,481 | 104,335,368 | ||||||
Telecom Italia SpA/Milano, | 32,643 | 34,972,894 | ||||||
Telefonaktiebolaget LM Ericsson, 4.13%, 05/15/22(a) | 19,802 | 20,508,914 | ||||||
T-Mobile USA Inc. | ||||||||
4.00%, 04/15/22 (Call 03/16/22) | 9,442 | 9,732,546 | ||||||
4.50%, 02/01/26 (Call 02/01/21) | 22,515 | 23,218,594 | ||||||
4.75%, 02/01/28 (Call 02/01/23) | 34,588 | 36,403,870 | ||||||
5.13%, 04/15/25 (Call 04/15/20) | 10,018 | 10,398,371 | ||||||
5.38%, 04/15/27 (Call 04/15/22) | 11,141 | 11,994,603 | ||||||
6.00%, 03/01/23 (Call 09/01/20) | 18,991 | 19,348,511 | ||||||
6.00%, 04/15/24 (Call 04/15/20) | 19,570 | 20,328,338 | ||||||
6.38%, 03/01/25 (Call 09/01/20) | 35,383 | 36,733,038 | ||||||
6.50%, 01/15/24 (Call 01/15/20)(a) | 13,307 | 13,822,646 | ||||||
6.50%, 01/15/26 (Call 01/15/21) | 41,786 | 44,819,664 | ||||||
ViaSat Inc. | ||||||||
5.63%, 09/15/25 (Call 09/15/20)(a)(b) | 16,750 | 17,042,323 | ||||||
5.63%, 04/15/27 (Call 04/15/22)(a)(b) | 12,671 | 13,369,413 | ||||||
West Corp., 8.50%, 10/15/25 | 25,743 | 19,487,158 | ||||||
|
| |||||||
1,869,719,884 | ||||||||
Toys, Games & Hobbies — 0.2% | ||||||||
Mattel Inc., 6.75%, 12/31/25 | 34,985 | 36,655,096 | ||||||
|
| |||||||
Transportation — 0.3% | ||||||||
Navios Maritime Holdings Inc./Navios Maritime Finance II U.S. Inc., 7.38%, 01/15/22 (Call 01/15/20)(a)(b) | 9,300 | 5,457,938 | ||||||
XPO Logistics Inc. | 10,426 | 10,764,093 |
Security | Par/ Shares (000) | Value | ||||||
Transportation (continued) | ||||||||
6.50%, 06/15/22 (Call 06/15/20)(b) | $ | 24,978 | $ | 25,483,525 | ||||
6.75%, 08/15/24 (Call 08/15/21)(a)(b) | 21,711 | 23,576,728 | ||||||
|
| |||||||
65,282,284 | ||||||||
Trucking & Leasing — 0.2% | ||||||||
AerCap Global Aviation Trust, 6.50%, 06/15/45 (Call 06/15/25)(b)(c) | 10,000 | 10,962,500 | ||||||
Fortress Transportation & Infrastructure Investors LLC | ||||||||
6.50%, 10/01/25 (Call 10/01/21)(a)(b) | 11,354 | 11,552,695 | ||||||
6.75%, 03/15/22 (Call 03/15/20)(a)(b) | 16,161 | 16,827,641 | ||||||
|
| |||||||
39,342,836 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 97.2% |
| 18,530,147,058 | ||||||
|
| |||||||
Preferred Stocks | ||||||||
Internet & Direct Marketing Retail — 0.0% | ||||||||
MYT Holding Co., 10.00%, 06/07/29(b) | 1,682 | 1,412,987 | ||||||
|
| |||||||
Total Preferred Stocks — 0.0% | 1,412,987 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 18.0% | ||||||||
BlackRock Cash Funds: Institutional, | 3,115,556 | 3,117,113,449 | ||||||
BlackRock Cash Funds: Treasury, | 310,839 | 310,839,000 | ||||||
|
| |||||||
3,427,952,449 | ||||||||
|
| |||||||
Total Short-Term Investments — 18.0% |
| 3,427,952,449 | ||||||
|
| |||||||
Total Investments in Securities — 115.2% |
| 21,959,512,494 | ||||||
Other Assets, Less Liabilities — (15.2)% |
| (2,899,274,993 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 19,060,237,501 | ||||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. |
(d) | Perpetual security with no stated maturity date. |
(e) | 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. |
(f) | Affiliate of the Fund. |
(g) | Annualized 7-day yield as of period-end. |
(h) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to a recently published shareholder report. Shareholder reports are available on the Fund’s website at iShares.com and on the U.S. Securities and Exchange Commission website at sec.gov.
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF
|
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 18,530,147,058 | $ | — | $ | 18,530,147,058 | ||||||||
Preferred Stocks | 1,412,987 | — | — | 1,412,987 | ||||||||||||
Money Market Funds | 3,427,952,449 | — | — | 3,427,952,449 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 3,429,365,436 | $ | 18,530,147,058 | $ | — | $ | 21,959,512,494 | |||||||||
|
|
|
|
|
|
|
|
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes | ||||||||
Advertising — 0.1% | ||||||||
Omnicom Group Inc./Omnicom Capital Inc. | ||||||||
3.60%, 04/15/26 (Call 01/15/26)(a) | $ | 10,437 | $ | 11,018,859 | ||||
3.63%, 05/01/22 | 2,122 | 2,200,087 | ||||||
3.65%, 11/01/24 (Call 08/01/24) | 9,972 | 10,528,930 | ||||||
WPP Finance 2010, 3.75%, 09/19/24(a) | 10,396 | 10,936,495 | ||||||
|
| |||||||
34,684,371 | ||||||||
Aerospace & Defense — 1.9% | ||||||||
Boeing Co. (The) | ||||||||
2.70%, 02/01/27 (Call 12/01/26)(a) | 13,030 | 13,227,510 | ||||||
2.95%, 02/01/30 (Call 11/01/29)(a) | 12,927 | 13,210,083 | ||||||
3.20%, 03/01/29 (Call 12/01/28) | 8,225 | 8,598,591 | ||||||
3.25%, 02/01/35 (Call 11/01/34) | 9,400 | 9,838,515 | ||||||
3.60%, 05/01/34 (Call 02/01/34) | 8,773 | 9,521,643 | ||||||
3.75%, 02/01/50 (Call 08/01/49) | 13,340 | 14,257,713 | ||||||
3.90%, 05/01/49 (Call 11/01/48)(a) | 8,136 | 8,870,429 | ||||||
3.95%, 08/01/59 (Call 02/01/59) | 10,000 | 10,923,037 | ||||||
General Dynamics Corp. | ||||||||
2.25%, 11/15/22 (Call 08/15/22) | 9,523 | 9,633,489 | ||||||
3.38%, 05/15/23 (Call 04/15/23)(a) | 6,177 | 6,481,671 | ||||||
3.50%, 05/15/25 (Call 03/15/25)(a) | 12,250 | 13,148,903 | ||||||
3.75%, 05/15/28 (Call 02/15/28)(a) | 7,414 | 8,280,482 | ||||||
L3Harris Technologies Inc. | ||||||||
3.85%, 06/15/23 (Call 05/15/23)(b) | 8,361 | 8,827,663 | ||||||
4.40%, 06/15/28 (Call 03/15/28) | 1,875 | 2,105,520 | ||||||
4.40%, 06/15/28 (Call 03/15/28)(b) | 11,680 | 13,115,987 | ||||||
Lockheed Martin Corp. | ||||||||
2.90%, 03/01/25 (Call 12/01/24)(a) | 9,399 | 9,787,430 | ||||||
3.55%, 01/15/26 (Call 10/15/25) | 25,397 | 27,386,372 | ||||||
3.80%, 03/01/45 (Call 09/01/44) | 14,097 | 15,636,643 | ||||||
4.07%, 12/15/42(a) | 15,502 | 17,870,247 | ||||||
4.09%, 09/15/52 (Call 03/15/52)(a) | 18,046 | 21,008,513 | ||||||
4.70%, 05/15/46 (Call 11/15/45)(a) | 11,641 | 14,683,073 | ||||||
Northrop Grumman Corp. | ||||||||
2.55%, 10/15/22 (Call 09/15/22)(a) | 7,453 | 7,569,057 | ||||||
2.93%, 01/15/25 (Call 11/15/24) | 20,329 | 21,011,461 | ||||||
3.20%, 02/01/27 (Call 11/01/26)(a) | 7,108 | 7,451,015 | ||||||
3.25%, 08/01/23(a) | 5,403 | 5,640,683 | ||||||
3.25%, 01/15/28 (Call 10/15/27)(a) | 42,852 | 44,887,449 | ||||||
4.03%, 10/15/47 (Call 04/15/47)(a) | 16,063 | 18,074,157 | ||||||
4.75%, 06/01/43(a) | 11,507 | 14,007,178 | ||||||
Raytheon Co., 2.50%, 12/15/22 (Call 09/15/22)(a) | 8,738 | 8,881,139 | ||||||
Rockwell Collins Inc. | ||||||||
3.20%, 03/15/24 (Call 01/15/24) | 9,033 | 9,404,897 | ||||||
3.50%, 03/15/27 (Call 12/15/26) | 20,154 | 21,543,072 | ||||||
4.35%, 04/15/47 (Call 10/15/46) | 9,220 | 10,845,693 | ||||||
United Technologies Corp. | ||||||||
2.65%, 11/01/26 (Call 08/01/26)(a) | 15,025 | 15,384,790 | ||||||
2.80%, 05/04/24 (Call 03/04/24)(a) | 6,665 | 6,865,408 | ||||||
3.13%, 05/04/27 (Call 02/04/27)(a) | 12,579 | 13,257,825 | ||||||
3.65%, 08/16/23 (Call 07/16/23) | 25,688 | 27,167,305 | ||||||
3.75%, 11/01/46 (Call 05/01/46) | 8,838 | 9,725,680 | ||||||
3.95%, 08/16/25 (Call 06/16/25)(a) | 13,106 | 14,341,361 | ||||||
4.13%, 11/16/28 (Call 08/16/28)(a) | 29,859 | 33,866,848 | ||||||
4.15%, 05/15/45 (Call 11/16/44) | 6,452 | 7,431,963 | ||||||
4.45%, 11/16/38 (Call 05/16/38)(a) | 13,125 | 15,680,721 | ||||||
4.50%, 06/01/42 | 39,828 | 47,840,036 | ||||||
4.63%, 11/16/48 (Call 05/16/48)(a) | 20,355 | 25,356,771 | ||||||
5.70%, 04/15/40 | 13,745 | 18,473,149 |
Security | Par (000) | Value | ||||||
Aerospace & Defense (continued) | ||||||||
6.13%, 07/15/38 | $ | 9,450 | $ | 13,183,163 | ||||
|
| |||||||
674,304,335 | ||||||||
Agriculture — 1.6% | ||||||||
Altria Group Inc. | ||||||||
2.85%, 08/09/22 | 2,561 | 2,596,761 | ||||||
3.80%, 02/14/24 (Call 01/14/24)(a) | 11,367 | 11,896,062 | ||||||
3.88%, 09/16/46 (Call 03/16/46) | 12,906 | 11,918,115 | ||||||
4.00%, 01/31/24 | 13,063 | 13,808,407 | ||||||
4.25%, 08/09/42(a) | 11,492 | 11,215,898 | ||||||
4.40%, 02/14/26 (Call 12/14/25)(a) | 16,434 | 17,721,042 | ||||||
4.80%, 02/14/29 (Call 11/14/28) | 40,971 | 44,983,417 | ||||||
5.38%, 01/31/44(a) | 12,718 | 14,215,987 | ||||||
5.80%, 02/14/39 (Call 08/14/38) | 24,227 | 28,014,097 | ||||||
5.95%, 02/14/49 (Call 08/14/48)(a) | 27,816 | 32,748,344 | ||||||
Archer-Daniels-Midland Co., 2.50%, 08/11/26 (Call 05/11/26) | 11,563 | 11,705,588 | ||||||
BAT Capital Corp. | ||||||||
2.79%, 09/06/24 (Call 08/06/24)(a) | 11,000 | 10,958,281 | ||||||
3.22%, 08/15/24 (Call 06/15/24)(a) | 18,757 | 19,044,498 | ||||||
3.22%, 09/06/26 (Call 07/06/26)(a) | 5,850 | 5,815,827 | ||||||
3.46%, 09/06/29 (Call 06/06/29) | 5,000 | 4,914,094 | ||||||
3.56%, 08/15/27 (Call 05/15/27)(a) | 40,522 | 40,743,226 | ||||||
4.39%, 08/15/37 (Call 02/15/37) | 26,198 | 25,708,545 | ||||||
4.54%, 08/15/47 (Call 02/15/47) | 30,427 | 29,270,126 | ||||||
4.76%, 09/06/49 (Call 03/06/49) | 8,395 | 8,286,522 | ||||||
Philip Morris International Inc. | ||||||||
2.50%, 11/02/22 (Call 10/02/22)(a) | 11,187 | 11,318,555 | ||||||
2.75%, 02/25/26 (Call 11/25/25) | 3,836 | 3,894,560 | ||||||
2.88%, 05/01/24 (Call 04/01/24) | 9,214 | 9,469,798 | ||||||
3.25%, 11/10/24(a) | 11,654 | 12,217,850 | ||||||
3.38%, 08/11/25 (Call 05/11/25) | 8,265 | 8,731,770 | ||||||
3.38%, 08/15/29 (Call 05/15/29) | 17,244 | 18,080,931 | ||||||
3.88%, 08/21/42 | 6,925 | 7,104,092 | ||||||
4.13%, 03/04/43 | 8,401 | 9,000,710 | ||||||
4.25%, 11/10/44 | 11,261 | 12,334,696 | ||||||
4.38%, 11/15/41 | 9,928 | 10,850,073 | ||||||
4.88%, 11/15/43(a) | 5,793 | 6,808,669 | ||||||
6.38%, 05/16/38 | 16,159 | 22,038,935 | ||||||
Reynolds American Inc. | ||||||||
4.45%, 06/12/25 (Call 03/12/25)(a) | 38,604 | 41,357,307 | ||||||
5.70%, 08/15/35 (Call 02/15/35)(a) | 7,228 | 8,098,517 | ||||||
5.85%, 08/15/45 (Call 02/15/45) | 24,114 | 26,794,447 | ||||||
|
| |||||||
553,665,747 | ||||||||
Airlines — 0.0% | ||||||||
Delta Air Lines Inc., 2.90%, 10/28/24 (Call 09/28/24) | 6,000 | 5,980,296 | ||||||
|
| |||||||
Apparel — 0.1% | ||||||||
NIKE Inc. | ||||||||
2.38%, 11/01/26 (Call 08/01/26)(a) | 10,090 | 10,320,290 | ||||||
3.88%, 11/01/45 (Call 05/01/45)(a) | 10,250 | 11,674,435 | ||||||
|
| |||||||
21,994,725 | ||||||||
Auto Manufacturers — 1.5% | ||||||||
Daimler Finance North America LLC | ||||||||
3.65%, 02/22/24(a)(b) | 1,985 | 2,082,603 | ||||||
8.50%, 01/18/31 | 18,062 | 27,200,232 | ||||||
Ford Motor Co. | ||||||||
4.35%, 12/08/26 (Call 09/08/26)(a) | 20,198 | 20,308,944 | ||||||
4.75%, 01/15/43 | 22,572 | 19,623,045 | ||||||
5.29%, 12/08/46 (Call 06/08/46)(a) | 14,075 | 12,960,891 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Auto Manufacturers (continued) | ||||||||
7.45%, 07/16/31 | $ | 20,007 | $ | 23,254,612 | ||||
Ford Motor Credit Co. LLC | ||||||||
3.10%, 05/04/23 | 9,510 | 9,378,869 | ||||||
3.66%, 09/08/24 | 16,079 | 15,905,506 | ||||||
3.81%, 01/09/24 (Call 11/09/23) | 7,008 | 7,004,322 | ||||||
3.82%, 11/02/27 (Call 08/02/27)(a) | 14,155 | 13,479,335 | ||||||
4.13%, 08/04/25 | 25,507 | 25,421,098 | ||||||
4.14%, 02/15/23 (Call 01/15/23) | 7,595 | 7,745,782 | ||||||
4.38%, 08/06/23(a) | 9,316 | 9,584,397 | ||||||
4.39%, 01/08/26 | 13,284 | 13,241,977 | ||||||
5.11%, 05/03/29 (Call 02/03/29)(a) | 15,430 | 15,628,167 | ||||||
5.58%, 03/18/24 (Call 02/18/24) | 12,845 | 13,680,499 | ||||||
General Motors Co. | ||||||||
4.20%, 10/01/27 (Call 07/01/27) | 13,672 | 13,958,324 | ||||||
4.88%, 10/02/23(a) | 9,050 | 9,720,475 | ||||||
5.00%, 10/01/28 (Call 07/01/28)(a) | 12,622 | 13,540,306 | ||||||
5.00%, 04/01/35(a) | 8,605 | 8,753,515 | ||||||
5.15%, 04/01/38 (Call 10/01/37) | 13,383 | 13,549,850 | ||||||
5.20%, 04/01/45 | 13,627 | 13,451,371 | ||||||
5.40%, 04/01/48 (Call 10/01/47) | 9,912 | 10,046,556 | ||||||
5.95%, 04/01/49 (Call 10/01/48) | 9,104 | 9,884,639 | ||||||
6.25%, 10/02/43 | 17,060 | 19,056,003 | ||||||
6.60%, 04/01/36 (Call 10/01/35)(a) | 10,796 | 12,496,895 | ||||||
6.75%, 04/01/46 (Call 10/01/45) | 9,110 | 10,509,325 | ||||||
General Motors Financial Co. Inc. | ||||||||
3.15%, 06/30/22 (Call 05/30/22)(a) | 4,318 | 4,384,373 | ||||||
3.25%, 01/05/23 (Call 12/05/22) | 4,688 | 4,750,701 | ||||||
3.45%, 04/10/22 (Call 02/10/22) | 6,150 | 6,276,933 | ||||||
3.50%, 11/07/24 (Call 09/07/24)(a) | 12,824 | 13,062,934 | ||||||
3.70%, 05/09/23 (Call 03/09/23) | 15,692 | 16,104,099 | ||||||
3.95%, 04/13/24 (Call 02/13/24)(a) | 10,554 | 10,923,249 | ||||||
4.00%, 01/15/25 (Call 10/15/24)(a) | 9,748 | 10,095,230 | ||||||
4.00%, 10/06/26 (Call 07/06/26)(a) | 8,844 | 9,005,153 | ||||||
4.15%, 06/19/23 (Call 05/19/23)(a) | 5,452 | 5,682,851 | ||||||
4.30%, 07/13/25 (Call 04/13/25)(a) | 9,379 | 9,805,206 | ||||||
4.35%, 04/09/25 (Call 02/09/25)(a) | 9,704 | 10,179,578 | ||||||
4.35%, 01/17/27 (Call 10/17/26) | 7,004 | 7,222,145 | ||||||
5.10%, 01/17/24 (Call 12/17/23) | 9,519 | 10,250,858 | ||||||
5.25%, 03/01/26 (Call 12/01/25) | 13,179 | 14,290,974 | ||||||
Toyota Motor Corp., 3.42%, 07/20/23(a) | 5,026 | 5,297,114 | ||||||
Toyota Motor Credit Corp. | ||||||||
2.15%, 09/08/22(a) | 6,776 | 6,832,948 | ||||||
3.20%, 01/11/27(a) | 14,219 | 15,247,209 | ||||||
3.45%, 09/20/23(a) | 8,431 | 8,902,424 | ||||||
|
| |||||||
539,781,517 | ||||||||
Banks — 24.7% | ||||||||
Australia & New Zealand Banking Group Ltd./New York NY | ||||||||
2.63%, 11/09/22(a) | 10,531 | 10,733,780 | ||||||
3.70%, 11/16/25(a) | 13,117 | 14,214,280 | ||||||
Banco Santander SA | ||||||||
2.71%, 06/27/24 | 8,225 | 8,345,929 | ||||||
3.13%, 02/23/23 | 7,937 | 8,102,828 | ||||||
3.31%, 06/27/29 | 21,050 | 21,830,932 | ||||||
3.50%, 04/11/22 | 3,762 | 3,864,668 | ||||||
3.80%, 02/23/28 | 10,610 | 11,200,100 | ||||||
3.85%, 04/12/23 | 13,365 | 13,968,205 | ||||||
4.25%, 04/11/27(a) | 14,282 | 15,419,911 | ||||||
4.38%, 04/12/28(a) | 12,392 | 13,593,081 | ||||||
5.18%, 11/19/25(a) | 2,498 | 2,770,757 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Bank of America Corp. | ||||||||
2.46%, 10/22/25 (Call 10/22/24)(a)(c) | $ | 3,825 | $ | 3,846,042 | ||||
2.50%, 10/21/22 (Call 10/21/21)(a) | 15,272 | 15,411,641 | ||||||
2.82%, 07/21/23 (Call 07/21/22)(a)(c) | 3,492 | 3,546,948 | ||||||
2.88%, 04/24/23 (Call 04/24/22)(a)(c) | 4,409 | 4,481,622 | ||||||
2.88%, 10/22/30 (Call 10/22/29)(c) | 10,000 | 10,021,249 | ||||||
3.00%, 12/20/23 (Call 12/20/22)(c) | 48,350 | 49,444,571 | ||||||
3.09%, 10/01/25 (Call 10/01/24)(c) | 19,549 | 20,202,077 | ||||||
3.12%, 01/20/23 (Call 01/20/22)(c) | 2,777 | 2,832,714 | ||||||
3.19%, 07/23/30 (Call 07/23/29)(c) | 23,985 | 24,734,661 | ||||||
3.25%, 10/21/27 (Call 10/21/26) | 18,909 | 19,644,759 | ||||||
3.30%, 01/11/23 | 41,275 | 42,789,669 | ||||||
3.37%, 01/23/26 (Call 01/23/25)(a)(c) | 25,057 | 26,225,811 | ||||||
3.42%, 12/20/28 (Call 12/20/27)(c) | 66,115 | 69,215,470 | ||||||
3.46%, 03/15/25 (Call 03/15/24)(c) | 27,725 | 28,935,637 | ||||||
3.50%, 04/19/26(a) | 30,329 | 32,201,239 | ||||||
3.55%, 03/05/24 (Call 03/05/23)(c) | 22,513 | 23,463,717 | ||||||
3.56%, 04/23/27 (Call 04/23/26)(c) | 12,260 | 12,951,018 | ||||||
3.59%, 07/21/28 (Call 07/21/27)(c) | 15,995 | 16,957,286 | ||||||
3.71%, 04/24/28 (Call 04/24/27)(a)(c) | 18,820 | 20,061,066 | ||||||
3.82%, 01/20/28 (Call 01/20/27)(c) | 19,559 | 21,029,227 | ||||||
3.86%, 07/23/24 (Call 07/23/23)(a)(c) | 30,372 | 32,051,347 | ||||||
3.88%, 08/01/25 | 23,401 | 25,269,855 | ||||||
3.95%, 01/23/49 (Call 01/23/48)(a)(c) | 15,708 | 17,683,441 | ||||||
3.97%, 03/05/29 (Call 03/05/28)(a)(c) | 31,372 | 34,153,683 | ||||||
3.97%, 02/07/30 (Call 02/07/29)(c) | 33,182 | 36,217,284 | ||||||
4.00%, 04/01/24(a) | 20,155 | 21,630,924 | ||||||
4.00%, 01/22/25 | 30,385 | 32,442,560 | ||||||
4.08%, 04/23/40 (Call 04/23/39)(c) | 21,155 | 23,676,094 | ||||||
4.10%, 07/24/23 | 19,863 | 21,199,307 | ||||||
4.13%, 01/22/24 | 23,872 | 25,680,801 | ||||||
4.20%, 08/26/24(a) | 12,177 | 13,112,765 | ||||||
4.24%, 04/24/38 (Call 04/24/37)(c) | 24,617 | 27,929,976 | ||||||
4.25%, 10/22/26 | 20,812 | 22,605,853 | ||||||
4.27%, 07/23/29 (Call 07/23/28)(a)(c) | 35,792 | 39,737,349 | ||||||
4.33%, 03/15/50 (Call 03/15/49)(c) | 25,806 | 30,581,436 | ||||||
4.44%, 01/20/48 (Call 01/20/47)(a)(c) | 19,430 | 23,259,573 | ||||||
4.45%, 03/03/26 | 22,926 | 25,023,518 | ||||||
5.00%, 01/21/44(a) | 21,397 | 27,196,454 | ||||||
5.88%, 02/07/42 | 18,256 | 25,418,298 | ||||||
6.11%, 01/29/37 | 18,189 | 23,915,301 | ||||||
7.75%, 05/14/38(a) | 13,094 | 20,113,487 | ||||||
Series L, 3.95%, 04/21/25(a) | 25,149 | 26,774,634 | ||||||
Series L, 4.18%, 11/25/27 (Call 11/25/26)(a) | 15,310 | 16,558,783 | ||||||
Bank of America N.A., 6.00%, 10/15/36 | 8,020 | 11,003,861 | ||||||
Bank of Montreal | ||||||||
2.35%, 09/11/22(a) | 9,876 | 10,007,999 | ||||||
2.50%, 06/28/24(a) | 16,983 | 17,194,596 | ||||||
2.55%, 11/06/22 (Call 10/06/22) | 9,072 | 9,237,974 | ||||||
Series E, 3.30%, 02/05/24(a) | 21,879 | 22,849,723 | ||||||
Bank of New York Mellon Corp. (The) | ||||||||
2.20%, 08/16/23 (Call 06/16/23)(a) | 13,508 | 13,577,750 | ||||||
2.45%, 08/17/26 (Call 05/17/26)(a) | 11,713 | 11,840,436 | ||||||
2.80%, 05/04/26 (Call 02/04/26) | 8,458 | 8,708,979 | ||||||
2.95%, 01/29/23 (Call 12/29/22) | 11,125 | 11,445,432 | ||||||
3.25%, 05/16/27 (Call 02/16/27)(a) | 4,686 | 4,960,269 | ||||||
3.30%, 08/23/29 (Call 05/23/29)(a) | 8,509 | 8,984,354 | ||||||
3.40%, 01/29/28 (Call 10/29/27) | 9,923 | 10,606,750 | ||||||
3.45%, 08/11/23(a) | 9,988 | 10,500,326 | ||||||
3.50%, 04/28/23(a) | 6,208 | 6,524,015 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Series 0012, 3.65%, 02/04/24 (Call 01/05/24)(a) | $ | 7,192 | $ | 7,654,214 | ||||
Series G, 3.00%, 02/24/25 (Call 01/24/25) | 9,193 | 9,582,585 | ||||||
Bank of Nova Scotia (The) | ||||||||
2.45%, 09/19/22 | 4,254 | 4,324,366 | ||||||
2.70%, 08/03/26(a) | 15,694 | 15,989,471 | ||||||
2.80%, 07/21/21 | 4,025 | 4,086,535 | ||||||
3.40%, 02/11/24(a) | 7,114 | 7,461,149 | ||||||
4.50%, 12/16/25(a) | 18,661 | 20,392,164 | ||||||
Barclays PLC | ||||||||
3.65%, 03/16/25(a) | 31,095 | 32,269,999 | ||||||
3.68%, 01/10/23 (Call 01/10/22)(a) | 10,978 | 11,219,643 | ||||||
3.93%, 05/07/25 (Call 05/07/24)(a)(c) | 8,757 | 9,128,093 | ||||||
4.34%, 05/16/24 (Call 05/16/23)(c) | 17,831 | 18,772,609 | ||||||
4.34%, 01/10/28 (Call 01/10/27)(a) | 16,218 | 17,504,598 | ||||||
4.38%, 09/11/24 | 13,794 | 14,472,051 | ||||||
4.38%, 01/12/26 | 26,116 | 28,108,813 | ||||||
4.84%, 05/09/28 (Call 05/07/27)(a) | 19,298 | 20,622,186 | ||||||
4.95%, 01/10/47 | 20,754 | 23,917,949 | ||||||
4.97%, 05/16/29 (Call 05/16/28)(a)(c) | 23,464 | 26,433,731 | ||||||
5.20%, 05/12/26(a) | 22,606 | 24,602,166 | ||||||
5.25%, 08/17/45 | 16,429 | 19,745,879 | ||||||
BB&T Corp. | ||||||||
2.50%, 08/01/24 (Call 07/01/24) | 13,121 | 13,292,781 | ||||||
2.85%, 10/26/24 (Call 09/26/24) | 14,600 | 15,080,769 | ||||||
3.70%, 06/05/25 (Call 05/05/25)(a) | 14,994 | 16,115,424 | ||||||
3.75%, 12/06/23 (Call 11/06/23) | 11,115 | 11,794,476 | ||||||
BNP Paribas SA | ||||||||
3.25%, 03/03/23 | 9,638 | 10,076,647 | ||||||
4.25%, 10/15/24(a) | 10,411 | 11,062,685 | ||||||
BPCE SA | ||||||||
2.75%, 12/02/21 | 1,956 | 1,988,765 | ||||||
4.00%, 04/15/24 | 14,338 | 15,442,393 | ||||||
Branch Banking & Trust Co. | ||||||||
3.63%, 09/16/25 (Call 08/16/25) | 10,970 | 11,717,834 | ||||||
3.80%, 10/30/26 (Call 09/30/26)(a) | 10,679 | 11,506,260 | ||||||
Canadian Imperial Bank of Commerce | ||||||||
3.10%, 04/02/24 | 16,657 | 17,245,823 | ||||||
3.50%, 09/13/23(a) | 13,603 | 14,342,836 | ||||||
Capital One N.A., 2.65%, 08/08/22 (Call 07/08/22) | 7,631 | 7,739,658 | ||||||
Citibank N.A., 3.65%, 01/23/24 | 22,860 | 24,242,689 | ||||||
Citigroup Inc. | ||||||||
2.70%, 10/27/22 (Call 09/27/22)(a) | 15,260 | 15,511,479 | ||||||
2.88%, 07/24/23 (Call 07/24/22)(c) | 17,002 | 17,277,570 | ||||||
3.14%, 01/24/23 (Call 01/24/22)(c) | 1,594 | 1,625,263 | ||||||
3.20%, 10/21/26 (Call 07/21/26)(a) | 33,700 | 34,930,579 | ||||||
3.30%, 04/27/25(a) | 22,034 | 23,040,835 | ||||||
3.35%, 04/24/25 (Call 04/24/24)(c) | 26,415 | 27,442,567 | ||||||
3.40%, 05/01/26(a) | 18,334 | 19,244,375 | ||||||
3.50%, 05/15/23(a) | 9,850 | 10,209,197 | ||||||
3.52%, 10/27/28 (Call 10/27/27)(a)(c) | 30,817 | 32,466,283 | ||||||
3.67%, 07/24/28 (Call 07/24/27)(c) | 26,374 | 28,021,236 | ||||||
3.70%, 01/12/26(a) | 20,478 | 21,851,228 | ||||||
3.88%, 10/25/23(a) | 13,349 | 14,171,285 | ||||||
3.88%, 03/26/25 | 19,320 | 20,433,535 | ||||||
3.88%, 01/24/39 (Call 01/24/38)(c) | 14,422 | 15,735,236 | ||||||
3.89%, 01/10/28 (Call 01/10/27)(a)(c) | 34,223 | 36,783,640 | ||||||
3.98%, 03/20/30 (Call 03/20/29)(c) | 22,400 | 24,424,124 | ||||||
4.00%, 08/05/24(a) | 7,798 | 8,297,975 | ||||||
4.04%, 06/01/24 (Call 06/01/23)(c) | 13,868 | 14,672,325 | ||||||
4.05%, 07/30/22(a) | 3,905 | 4,097,945 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
4.08%, 04/23/29 (Call 04/23/28)(a)(c) | $ | 9,676 | $ | 10,599,256 | ||||
4.13%, 07/25/28(a) | 27,346 | 29,592,012 | ||||||
4.28%, 04/24/48 (Call 04/24/47)(a)(c) | 11,320 | 13,376,267 | ||||||
4.30%, 11/20/26(a) | 14,761 | 15,973,386 | ||||||
4.40%, 06/10/25 | 23,297 | 25,255,651 | ||||||
4.45%, 09/29/27 | 45,195 | 49,713,964 | ||||||
4.60%, 03/09/26(a) | 11,616 | 12,742,192 | ||||||
4.65%, 07/30/45 | 14,386 | 17,561,081 | ||||||
4.65%, 07/23/48 (Call 06/23/48)(a) | 26,403 | 32,576,235 | ||||||
4.75%, 05/18/46(a) | 21,653 | 25,434,114 | ||||||
5.30%, 05/06/44(a) | 9,286 | 11,623,241 | ||||||
5.50%, 09/13/25(a) | 16,332 | 18,677,755 | ||||||
5.88%, 01/30/42 | 11,666 | 16,029,758 | ||||||
6.63%, 06/15/32 | 10,833 | 14,358,963 | ||||||
6.68%, 09/13/43 | 10,451 | 15,101,569 | ||||||
8.13%, 07/15/39 | 20,258 | 33,218,892 | ||||||
Citizens Financial Group Inc., 4.30%, 12/03/25 (Call 11/03/25)(a) | 7,373 | 7,950,147 | ||||||
Cooperatieve Rabobank UA | ||||||||
3.75%, 07/21/26(a) | 21,864 | 22,827,516 | ||||||
3.95%, 11/09/22 | 14,491 | 15,137,799 | ||||||
4.38%, 08/04/25 | 22,461 | 24,373,460 | ||||||
4.63%, 12/01/23 | 6,902 | 7,440,290 | ||||||
5.25%, 05/24/41(a) | 13,792 | 19,024,126 | ||||||
5.25%, 08/04/45 | 13,485 | 16,965,206 | ||||||
5.75%, 12/01/43(a) | 14,937 | 19,813,818 | ||||||
Cooperatieve Rabobank UA/NY | ||||||||
2.75%, 01/10/23 | 13,315 | 13,611,071 | ||||||
3.38%, 05/21/25 | 21,884 | 23,333,850 | ||||||
Credit Suisse AG/New York NY, 3.63%, 09/09/24(a) | 37,090 | 39,415,491 | ||||||
Credit Suisse Group Funding Guernsey Ltd. | ||||||||
3.75%, 03/26/25(a) | 26,357 | 27,844,165 | ||||||
3.80%, 06/09/23 | 24,773 | 25,921,345 | ||||||
4.55%, 04/17/26(a) | 21,032 | 23,272,522 | ||||||
4.88%, 05/15/45 | 25,902 | 32,155,945 | ||||||
Deutsche Bank AG/London, 3.70%, 05/30/24(a) | 3,944 | 3,984,416 | ||||||
Deutsche Bank AG/New York NY | ||||||||
3.30%, 11/16/22(a) | 11,145 | 11,168,732 | ||||||
3.70%, 05/30/24(a) | 12,419 | 12,551,049 | ||||||
3.95%, 02/27/23 | 7,917 | 8,089,739 | ||||||
Discover Bank | ||||||||
2.45%, 09/12/24 (Call 08/12/24) | 5,550 | 5,555,078 | ||||||
3.35%, 02/06/23 (Call 01/06/23)(a) | 7,793 | 8,044,773 | ||||||
3.45%, 07/27/26 (Call 04/27/26)(a) | 11,629 | 12,059,628 | ||||||
4.20%, 08/08/23 | 10,721 | 11,427,185 | ||||||
4.65%, 09/13/28 (Call 06/13/28)(a) | 13,048 | 14,644,003 | ||||||
Fifth Third Bancorp. | ||||||||
2.38%, 01/28/25 (Call 12/28/24) | 5,000 | 5,023,678 | ||||||
3.65%, 01/25/24 (Call 12/25/23) | 11,547 | 12,179,771 | ||||||
3.95%, 03/14/28 (Call 02/14/28)(a) | 3,170 | 3,467,489 | ||||||
4.30%, 01/16/24 (Call 12/16/23)(a) | 8,603 | 9,254,087 | ||||||
8.25%, 03/01/38 | 10,869 | 16,644,918 | ||||||
Fifth Third Bank/Cincinnati OH | ||||||||
3.85%, 03/15/26 (Call 02/15/26)(a) | 10,079 | 10,767,834 | ||||||
3.95%, 07/28/25 (Call 06/28/25)(a) | 5,542 | 6,049,229 | ||||||
Goldman Sachs Group Inc. (The) | ||||||||
2.91%, 07/24/23 (Call 07/24/22)(a)(c) | 11,616 | 11,791,229 | ||||||
3.20%, 02/23/23 (Call 01/23/23)(a) | 16,295 | 16,802,374 | ||||||
3.27%, 09/29/25 (Call 09/29/24)(c) | 29,585 | 30,608,845 | ||||||
3.50%, 01/23/25 (Call 10/23/24) | 28,933 | 30,246,312 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
3.50%, 11/16/26 (Call 11/16/25)(a) | $ | 29,414 | $ | 30,697,192 | ||||
3.63%, 01/22/23(a) | 22,528 | 23,555,820 | ||||||
3.63%, 02/20/24 (Call 01/20/24)(a) | 13,491 | 14,175,756 | ||||||
3.69%, 06/05/28 (Call 06/05/27)(c) | 26,599 | 28,045,071 | ||||||
3.75%, 05/22/25 (Call 02/22/25) | 30,464 | 32,298,813 | ||||||
3.75%, 02/25/26 (Call 11/25/25)(a) | 15,945 | 16,938,117 | ||||||
3.81%, 04/23/29 (Call 04/23/28)(c) | 31,573 | 33,524,704 | ||||||
3.85%, 07/08/24 (Call 04/08/24)(a) | 23,317 | 24,725,365 | ||||||
3.85%, 01/26/27 (Call 01/26/26)(a) | 26,876 | 28,588,273 | ||||||
4.00%, 03/03/24 | 26,748 | 28,582,712 | ||||||
4.02%, 10/31/38 (Call 10/31/37)(c) | 29,635 | 32,037,829 | ||||||
4.22%, 05/01/29 (Call 05/01/28)(a)(c) | 43,302 | 47,317,524 | ||||||
4.25%, 10/21/25(a) | 24,720 | 26,626,243 | ||||||
4.41%, 04/23/39 (Call 04/23/38)(c) | 18,904 | 21,428,805 | ||||||
4.75%, 10/21/45 (Call 04/21/45) | 21,523 | 26,127,396 | ||||||
4.80%, 07/08/44 (Call 01/08/44)(a) | 20,981 | 25,382,405 | ||||||
5.15%, 05/22/45 | 23,350 | 28,265,133 | ||||||
5.95%, 01/15/27(a) | 7,854 | 9,347,478 | ||||||
6.13%, 02/15/33 | 4,890 | 6,538,681 | ||||||
6.25%, 02/01/41 | 25,640 | 35,962,295 | ||||||
6.75%, 10/01/37 | 65,513 | 89,026,880 | ||||||
HSBC Bank USA N.A./New York NY | 8,319 | 10,368,123 | ||||||
5.88%, 11/01/34 | 12,033 | 15,541,335 | ||||||
HSBC Holdings PLC | ||||||||
3.03%, 11/22/23 (Call 11/22/22)(a)(c) | 13,514 | 13,789,817 | ||||||
3.26%, 03/13/23 (Call 03/13/22)(a)(c) | 3,752 | 3,834,837 | ||||||
3.60%, 05/25/23(a) | 21,155 | 22,070,586 | ||||||
3.80%, 03/11/25 (Call 03/11/24)(a)(c) | 14,830 | 15,552,701 | ||||||
3.90%, 05/25/26(a) | 28,141 | 29,999,257 | ||||||
3.95%, 05/18/24 (Call 05/18/23)(a)(c) | 15,071 | 15,823,133 | ||||||
3.97%, 05/22/30 (Call 05/22/29)(a)(c) | 21,571 | 23,292,430 | ||||||
4.04%, 03/13/28 (Call 03/13/27)(a)(c) | 23,462 | 25,137,260 | ||||||
4.25%, 03/14/24(a) | 5,698 | 6,045,851 | ||||||
4.25%, 08/18/25(a) | 33,603 | 35,899,846 | ||||||
4.29%, 09/12/26 (Call 09/12/25)(c) | 21,824 | 23,589,773 | ||||||
4.30%, 03/08/26(a) | 40,426 | 44,030,916 | ||||||
4.38%, 11/23/26(a) | 14,601 | 15,786,176 | ||||||
4.58%, 06/19/29 (Call 06/19/28)(c) | 45,418 | 50,800,410 | ||||||
5.25%, 03/14/44(a) | 15,351 | 19,112,921 | ||||||
6.10%, 01/14/42 | 11,247 | 16,024,395 | ||||||
6.50%, 05/02/36(a) | 21,309 | 28,588,862 | ||||||
6.50%, 09/15/37 | 32,645 | 44,313,110 | ||||||
6.80%, 06/01/38(a) | 16,325 | 22,952,015 | ||||||
HSBC USA Inc., 3.50%, 06/23/24 | 5,961 | 6,307,122 | ||||||
Huntington Bancshares Inc./OH, 2.63%, 08/06/24 (Call 07/06/24) | 9,600 | 9,745,676 | ||||||
Huntington National Bank (The), 3.55%, 10/06/23 (Call 09/06/23) | 5,352 | 5,644,924 | ||||||
ING Groep NV | ||||||||
3.15%, 03/29/22 | 2,203 | 2,255,016 | ||||||
3.55%, 04/09/24 | 8,060 | 8,448,491 | ||||||
3.95%, 03/29/27(a) | 13,719 | 14,736,419 | ||||||
4.05%, 04/09/29(a) | 8,760 | 9,650,043 | ||||||
4.10%, 10/02/23(a) | 16,735 | 17,848,748 | ||||||
4.55%, 10/02/28(a) | 27,510 | 31,275,219 | ||||||
JPMorgan Chase & Co. | ||||||||
2.30%, 10/15/25 (Call 10/15/24)(c) | 17,775 | 17,733,286 | ||||||
2.70%, 05/18/23 (Call 03/18/23)(a) | 15,239 | 15,550,734 | ||||||
2.74%, 10/15/30 (Call 10/15/29)(a)(c) | 31,850 | 31,729,126 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
2.78%, 04/25/23 (Call 04/25/22)(c) | $ | 1,941 | $ | 1,969,210 | ||||
2.95%, 10/01/26 (Call 07/01/26)(a) | 32,066 | 32,984,777 | ||||||
2.97%, 01/15/23 (Call 01/15/22) | 14,990 | 15,273,545 | ||||||
3.13%, 01/23/25 (Call 10/23/24) | 26,380 | 27,376,162 | ||||||
3.20%, 01/25/23(a) | 30,937 | 32,032,015 | ||||||
3.20%, 06/15/26 (Call 03/15/26) | 17,485 | 18,281,214 | ||||||
3.22%, 03/01/25 (Call 03/01/24)(c) | 22,031 | 22,857,429 | ||||||
3.25%, 09/23/22(a) | 30,430 | 31,497,411 | ||||||
3.30%, 04/01/26 (Call 01/01/26)(a) | 31,727 | 33,355,779 | ||||||
3.38%, 05/01/23(a) | 21,261 | 22,178,236 | ||||||
3.51%, 01/23/29 (Call 01/23/28)(c) | 38,993 | 41,245,544 | ||||||
3.54%, 05/01/28 (Call 05/01/27)(a)(c) | 30,543 | 32,388,817 | ||||||
3.56%, 04/23/24 (Call 04/23/23)(c) | 25,173 | 26,267,144 | ||||||
3.63%, 05/13/24 | 18,085 | 19,231,660 | ||||||
3.63%, 12/01/27 (Call 12/01/26)(a) | 14,738 | 15,518,651 | ||||||
3.70%, 05/06/30 (Call 05/06/29)(a)(c) | 22,465 | 24,147,581 | ||||||
3.78%, 02/01/28 (Call 02/01/27)(c) | 4,887 | 5,248,136 | ||||||
3.80%, 07/23/24 (Call 07/23/23)(a)(c) | 25,497 | 26,952,351 | ||||||
3.88%, 02/01/24(a) | 14,806 | 15,824,453 | ||||||
3.88%, 09/10/24 | 26,869 | 28,665,416 | ||||||
3.88%, 07/24/38 (Call 07/24/37)(c) | 25,405 | 27,840,323 | ||||||
3.90%, 07/15/25 (Call 04/15/25) | 30,667 | 33,109,075 | ||||||
3.90%, 01/23/49 (Call 01/23/48)(a)(c) | 19,137 | 21,248,963 | ||||||
3.96%, 01/29/27 (Call 01/29/26)(a)(c) | 20,307 | 21,992,101 | ||||||
3.96%, 11/15/48 (Call 11/15/47)(c) | 32,789 | 36,656,515 | ||||||
4.01%, 04/23/29 (Call 04/23/28)(c) | 32,025 | 34,988,738 | ||||||
4.02%, 12/05/24 (Call 12/05/23)(c) | 23,770 | 25,380,244 | ||||||
4.03%, 07/24/48 (Call 07/24/47)(a)(c) | 17,066 | 19,308,967 | ||||||
4.13%, 12/15/26(a) | 10,737 | 11,677,346 | ||||||
4.20%, 07/23/29 (Call 07/23/28)(a)(c) | 33,494 | 37,168,851 | ||||||
4.25%, 10/01/27 | 10,928 | 12,015,883 | ||||||
4.26%, 02/22/48 (Call 02/22/47)(c) | 23,037 | 26,892,265 | ||||||
4.45%, 12/05/29 (Call 12/05/28)(a)(c) | 23,399 | 26,516,484 | ||||||
4.85%, 02/01/44 | 11,428 | 14,356,946 | ||||||
4.95%, 06/01/45 | 20,557 | 25,499,978 | ||||||
5.40%, 01/06/42(a) | 15,628 | 20,707,775 | ||||||
5.50%, 10/15/40 | 15,380 | 20,283,633 | ||||||
5.60%, 07/15/41 | 18,849 | 25,471,824 | ||||||
5.63%, 08/16/43 | 10,729 | 14,202,499 | ||||||
6.40%, 05/15/38 | 27,519 | 39,248,666 | ||||||
KeyBank N.A./Cleveland OH | ||||||||
2.30%, 09/14/22 | 11,295 | 11,375,383 | ||||||
3.30%, 06/01/25 | 11,021 | 11,679,428 | ||||||
KeyCorp., 4.10%, 04/30/28(a) | 10,616 | 11,675,733 | ||||||
Lloyds Banking Group PLC | ||||||||
2.91%, 11/07/23 (Call 11/07/22)(c) | 22,974 | 23,289,755 | ||||||
3.57%, 11/07/28 (Call 11/07/27)(a)(c) | 29,226 | 30,359,767 | ||||||
3.75%, 01/11/27 | 12,040 | 12,734,759 | ||||||
3.90%, 03/12/24(a) | 8,665 | 9,152,828 | ||||||
4.05%, 08/16/23 | 19,481 | 20,630,254 | ||||||
4.34%, 01/09/48(a) | 17,416 | 18,444,632 | ||||||
4.38%, 03/22/28 | 14,765 | 16,300,811 | ||||||
4.45%, 05/08/25(a) | 29,830 | 32,657,624 | ||||||
4.50%, 11/04/24 | 9,829 | 10,499,310 | ||||||
4.55%, 08/16/28(a) | 10,291 | 11,541,340 | ||||||
4.58%, 12/10/25 | 17,670 | 18,977,333 | ||||||
4.65%, 03/24/26(a) | 18,060 | 19,476,547 | ||||||
5.30%, 12/01/45(a) | 8,962 | 10,771,734 | ||||||
M&T Bank Corp., 3.55%, 07/26/23 (Call 06/26/23)(a) | 2,320 | 2,433,040 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Manufacturers & Traders Trust Co., 2.90%, 02/06/25 (Call 01/06/25) | $ | 9,676 | $ | 10,010,754 | ||||
Mitsubishi UFJ Financial Group Inc. | ||||||||
2.67%, 07/25/22(a) | 11,570 | 11,714,794 | ||||||
2.76%, 09/13/26(a) | 18,135 | 18,353,842 | ||||||
2.80%, 07/18/24(a) | 12,375 | 12,618,609 | ||||||
3.20%, 07/18/29 | 18,025 | 18,700,698 | ||||||
3.29%, 07/25/27(a) | 12,467 | 13,055,201 | ||||||
3.41%, 03/07/24 | 20,141 | 21,038,350 | ||||||
3.46%, 03/02/23 | 20,754 | 21,508,848 | ||||||
3.68%, 02/22/27(a) | 16,055 | 17,155,170 | ||||||
3.74%, 03/07/29 | 27,421 | 29,753,345 | ||||||
3.75%, 07/18/39(a) | 15,661 | 16,923,369 | ||||||
3.76%, 07/26/23(a) | 6,250 | 6,577,611 | ||||||
3.78%, 03/02/25 | 6,774 | 7,226,073 | ||||||
3.85%, 03/01/26(a) | 29,975 | 32,228,853 | ||||||
3.96%, 03/02/28(a) | 9,948 | 10,929,194 | ||||||
4.05%, 09/11/28 | 12,620 | 13,983,016 | ||||||
Mizuho Financial Group Inc. | ||||||||
2.60%, 09/11/22(a) | 8,967 | 9,059,993 | ||||||
2.84%, 09/13/26(a) | 14,329 | 14,532,829 | ||||||
3.15%, 07/16/30 (Call 07/16/29)(c) | 7,980 | 8,180,375 | ||||||
3.17%, 09/11/27 | 6,606 | 6,853,575 | ||||||
3.55%, 03/05/23 | 8,830 | 9,188,154 | ||||||
3.92%, 09/11/24 (Call 09/11/23)(a)(c) | 11,419 | 12,004,340 | ||||||
4.02%, 03/05/28(a) | 17,415 | 19,174,739 | ||||||
4.25%, 09/11/29 (Call 09/11/28)(a)(c) | 16,884 | 18,807,905 | ||||||
Morgan Stanley | ||||||||
2.72%, 07/22/25 (Call 07/22/24)(a)(c) | 18,460 | 18,719,548 | ||||||
3.13%, 01/23/23 | 23,732 | 24,417,299 | ||||||
3.13%, 07/27/26 | 36,329 | 37,718,704 | ||||||
3.59%, 07/22/28 (Call 07/22/27)(c) | 29,626 | 31,275,845 | ||||||
3.63%, 01/20/27(a) | 33,482 | 35,678,998 | ||||||
3.70%, 10/23/24 | 39,145 | 41,649,630 | ||||||
3.74%, 04/24/24 (Call 04/24/23)(a)(c) | 36,024 | 37,714,678 | ||||||
3.75%, 02/25/23(a) | 24,878 | 26,151,813 | ||||||
3.77%, 01/24/29 (Call 01/24/28)(c) | 27,337 | 29,205,276 | ||||||
3.88%, 01/27/26 | 36,682 | 39,513,352 | ||||||
3.95%, 04/23/27 | 22,512 | 24,022,427 | ||||||
3.97%, 07/22/38 (Call 07/22/37)(c) | 22,961 | 25,106,283 | ||||||
4.00%, 07/23/25(a) | 32,580 | 35,291,904 | ||||||
4.10%, 05/22/23(a) | 15,893 | 16,820,643 | ||||||
4.30%, 01/27/45(a) | 27,110 | 31,363,822 | ||||||
4.35%, 09/08/26(a) | 29,454 | 32,034,218 | ||||||
4.38%, 01/22/47(a) | 28,669 | 33,769,401 | ||||||
4.43%, 01/23/30 (Call 01/23/29)(a)(c) | 33,760 | 37,888,112 | ||||||
4.46%, 04/22/39 (Call 04/22/38)(a)(c) | 10,168 | 11,770,948 | ||||||
4.88%, 11/01/22 | 20,879 | 22,412,669 | ||||||
5.00%, 11/24/25(a) | 17,463 | 19,654,601 | ||||||
6.38%, 07/24/42 | 24,052 | 35,024,034 | ||||||
7.25%, 04/01/32 | 13,811 | 19,668,944 | ||||||
Series F, 3.88%, 04/29/24 | 30,156 | 32,143,308 | ||||||
National Australia Bank Ltd./New York | ||||||||
2.50%, 07/12/26 | 16,323 | 16,484,710 | ||||||
3.00%, 01/20/23(a) | 5,026 | 5,176,323 | ||||||
3.38%, 01/14/26 | 7,913 | 8,390,760 | ||||||
3.63%, 06/20/23 | 6,930 | 7,305,034 | ||||||
Northern Trust Corp., 3.95%, 10/30/25(a) | 9,230 | 10,064,027 | ||||||
PNC Bank N.A. | ||||||||
2.45%, 07/28/22 (Call 06/28/22)(a) | 1,367 | 1,383,805 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
2.55%, 12/09/21 (Call 11/09/21)(a) | $ | 5,912 | $ | 5,982,687 | ||||
2.63%, 02/17/22 (Call 01/18/22) | 2,762 | 2,803,862 | ||||||
2.70%, 11/01/22 (Call 10/01/22) | 11,914 | 12,111,668 | ||||||
2.95%, 01/30/23 (Call 12/30/22) | 6,032 | 6,178,487 | ||||||
2.95%, 02/23/25 (Call 01/24/25) | 12,022 | 12,472,928 | ||||||
3.10%, 10/25/27 (Call 09/25/27) | 13,889 | 14,615,993 | ||||||
3.25%, 06/01/25 (Call 05/02/25)(a) | 11,718 | 12,354,004 | ||||||
3.50%, 06/08/23 (Call 05/09/23) | 7,035 | 7,382,090 | ||||||
3.80%, 07/25/23 (Call 06/25/23) | 4,384 | 4,620,891 | ||||||
4.05%, 07/26/28(a) | 15,649 | 17,389,167 | ||||||
PNC Financial Services Group Inc. (The) | ||||||||
2.60%, 07/23/26 (Call 05/23/26)(a) | 2,495 | 2,539,643 | ||||||
3.15%, 05/19/27 (Call 04/19/27)(a) | 4,086 | 4,307,330 | ||||||
3.30%, 03/08/22 (Call 02/06/22) | 10,551 | 10,871,345 | ||||||
3.45%, 04/23/29 (Call 01/23/29) | 10,494 | 11,300,856 | ||||||
3.50%, 01/23/24 (Call 12/23/23)(a) | 9,666 | 10,218,397 | ||||||
3.90%, 04/29/24 (Call 03/29/24) | 8,062 | 8,635,970 | ||||||
Regions Financial Corp. | ||||||||
2.75%, 08/14/22 (Call 07/14/22)(a) | 6,328 | 6,444,515 | ||||||
3.80%, 08/14/23 (Call 07/14/23)(a) | 7,907 | 8,362,962 | ||||||
Royal Bank of Canada | ||||||||
2.25%, 11/01/24 | 12,000 | 12,024,301 | ||||||
2.55%, 07/16/24(a) | 10,968 | 11,126,992 | ||||||
3.70%, 10/05/23 | 23,223 | 24,563,720 | ||||||
4.65%, 01/27/26(a) | 16,040 | 17,820,515 | ||||||
Royal Bank of Scotland Group PLC | ||||||||
3.88%, 09/12/23 | 29,234 | 30,479,056 | ||||||
4.27%, 03/22/25 (Call 03/22/24)(a)(c) | 18,712 | 19,841,782 | ||||||
4.45%, 05/08/30 (Call 05/08/29)(a)(c) | 15,470 | 16,968,130 | ||||||
4.52%, 06/25/24 (Call 06/25/23)(a)(c) | 12,477 | 13,244,808 | ||||||
4.80%, 04/05/26(a) | 17,105 | 18,937,188 | ||||||
4.89%, 05/18/29 (Call 05/18/28)(c) | 27,087 | 30,437,377 | ||||||
5.08%, 01/27/30 (Call 01/27/29)(a)(c) | 18,803 | 21,502,171 | ||||||
5.13%, 05/28/24(a) | 21,693 | 23,415,635 | ||||||
6.00%, 12/19/23 | 21,543 | 23,887,962 | ||||||
6.10%, 06/10/23(a) | 12,054 | 13,261,395 | ||||||
6.13%, 12/15/22 | 25,060 | 27,308,914 | ||||||
Santander Holdings USA Inc. | ||||||||
3.24%, 10/05/26 (Call 08/05/26)(b) | 200 | 201,571 | ||||||
3.40%, 01/18/23 (Call 12/18/22) | 7,254 | 7,451,946 | ||||||
3.50%, 06/07/24 (Call 05/07/24)(a) | 10,455 | 10,752,428 | ||||||
4.40%, 07/13/27 (Call 04/14/27) | 11,218 | 12,040,015 | ||||||
4.50%, 07/17/25 (Call 04/17/25)(a) | 9,519 | 10,255,941 | ||||||
Santander UK Group Holdings PLC | ||||||||
3.37%, 01/05/24 (Call 01/05/23)(c) | 14,673 | 14,980,392 | ||||||
3.57%, 01/10/23 (Call 01/10/22)(a) | 9,606 | 9,809,377 | ||||||
3.82%, 11/03/28 (Call 11/03/27)(a)(c) | 13,774 | 14,519,649 | ||||||
4.80%, 11/15/24 (Call 11/15/23)(c) | 11,123 | 11,994,768 | ||||||
Santander UK PLC | ||||||||
2.88%, 06/18/24 | 8,435 | 8,605,406 | ||||||
4.00%, 03/13/24(a) | 7,341 | 7,847,726 | ||||||
State Street Corp. | ||||||||
2.65%, 05/19/26(a) | 11,674 | 11,923,194 | ||||||
3.10%, 05/15/23(a) | 8,796 | 9,087,466 | ||||||
3.30%, 12/16/24(a) | 6,338 | 6,700,609 | ||||||
3.55%, 08/18/25(a) | 12,768 | 13,741,594 | ||||||
3.70%, 11/20/23(a) | 7,360 | 7,845,839 | ||||||
Sumitomo Mitsui Banking Corp., 3.20%, 07/18/22 | 5,518 | 5,668,542 | ||||||
Sumitomo Mitsui Financial Group Inc. | 28,515 | 28,621,891 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
2.70%, 07/16/24(a) | $ | 22,225 | $ | 22,543,455 | ||||
2.78%, 07/12/22 | 20,002 | 20,327,138 | ||||||
2.78%, 10/18/22(a) | 10,611 | 10,807,013 | ||||||
3.01%, 10/19/26(a) | 17,406 | 17,866,464 | ||||||
3.04%, 07/16/29 | 11,850 | 12,141,944 | ||||||
3.10%, 01/17/23 | 16,300 | 16,729,073 | ||||||
3.35%, 10/18/27(a) | 9,192 | 9,666,405 | ||||||
3.36%, 07/12/27(a) | 22,323 | 23,451,970 | ||||||
3.45%, 01/11/27(a) | 11,087 | 11,690,871 | ||||||
3.54%, 01/17/28(a) | 17,334 | 18,477,777 | ||||||
3.75%, 07/19/23 | 10,720 | 11,271,203 | ||||||
3.78%, 03/09/26 | 21,349 | 22,958,394 | ||||||
3.94%, 10/16/23(a) | 977 | 1,036,845 | ||||||
3.94%, 07/19/28(a) | 450 | 494,035 | ||||||
SunTrust Bank/Atlanta GA | ||||||||
2.45%, 08/01/22 (Call 07/01/22) | 12,893 | 13,026,596 | ||||||
3.20%, 04/01/24 (Call 03/01/24)(a) | 6,985 | 7,283,198 | ||||||
3.30%, 05/15/26 (Call 04/15/26)(a) | 5,816 | 6,076,992 | ||||||
SunTrust Banks Inc., 4.00%, 05/01/25 (Call 03/01/25)(a) | 15,525 | 16,838,923 | ||||||
Svenska Handelsbanken AB, 3.90%, 11/20/23 | 2,175 | 2,324,927 | ||||||
Synchrony Bank, 3.00%, 06/15/22 (Call 05/15/22) | 3,269 | 3,315,032 | ||||||
Toronto-Dominion Bank (The) | ||||||||
1.80%, 07/13/21 | 1,897 | 1,895,309 | ||||||
2.65%, 06/12/24(a) | 23,546 | 24,098,001 | ||||||
3.25%, 03/11/24 | 10,668 | 11,178,480 | ||||||
3.50%, 07/19/23 | 12,692 | 13,384,856 | ||||||
U.S. Bancorp. | ||||||||
2.40%, 07/30/24 (Call 06/28/24)(a) | 3,889 | 3,957,181 | ||||||
3.00%, 07/30/29 (Call 04/30/29)(a) | 8,149 | 8,443,172 | ||||||
3.10%, 04/27/26 (Call 03/27/26) | 11,948 | 12,476,160 | ||||||
3.38%, 02/05/24 (Call 01/05/24) | 11,318 | 11,952,235 | ||||||
3.60%, 09/11/24 (Call 08/11/24)(a) | 8,579 | 9,145,638 | ||||||
3.70%, 01/30/24 (Call 12/29/23)(a) | 6,752 | 7,198,724 | ||||||
3.90%, 04/26/28 (Call 03/24/28)(a) | 13,820 | 15,507,450 | ||||||
3.95%, 11/17/25 (Call 10/17/25)(a) | 10,030 | 11,069,101 | ||||||
Series V, 2.38%, 07/22/26 (Call 06/22/26)(a) | 18,807 | 19,036,523 | ||||||
Series X, 3.15%, 04/27/27 (Call 03/27/27) | 19,420 | 20,541,223 | ||||||
U.S. Bank N.A./Cincinnati OH | ||||||||
2.80%, 01/27/25 (Call 12/27/24)(a) | 15,389 | 15,968,300 | ||||||
2.85%, 01/23/23 (Call 12/23/22) | 4,596 | 4,728,156 | ||||||
3.40%, 07/24/23 (Call 06/23/23)(a) | 11,262 | 11,826,089 | ||||||
Wachovia Corp., 5.50%, 08/01/35(a) | 7,015 | 8,789,606 | ||||||
Wells Fargo & Co. | ||||||||
2.41%, 10/30/25 (Call 10/30/24)(c) | 20,000 | 20,002,000 | ||||||
2.63%, 07/22/22 | 19,038 | 19,291,999 | ||||||
2.88%, 10/30/30 (Call 10/30/29)(c) | 23,000 | 23,044,275 | ||||||
3.00%, 02/19/25 | 31,498 | 32,424,271 | ||||||
3.00%, 04/22/26(a) | 37,284 | 38,291,302 | ||||||
3.00%, 10/23/26(a) | 41,469 | 42,601,037 | ||||||
3.07%, 01/24/23 (Call 01/24/22) | 39,116 | 39,870,634 | ||||||
3.20%, 06/17/27 (Call 06/17/26)(c) | 27,777 | 28,728,376 | ||||||
3.30%, 09/09/24(a) | 14,886 | 15,551,172 | ||||||
3.50%, 03/08/22(a) | 1,142 | 1,178,009 | ||||||
3.55%, 09/29/25 | 30,969 | 32,873,519 | ||||||
3.58%, 05/22/28 (Call 05/22/27)(c) | 34,183 | 36,241,562 | ||||||
3.75%, 01/24/24 (Call 12/24/23) | 34,785 | 36,792,119 | ||||||
3.90%, 05/01/45 | 22,099 | 24,699,988 | ||||||
4.10%, 06/03/26(a) | 33,249 | 35,735,260 | ||||||
4.13%, 08/15/23 | 11,635 | 12,339,139 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
4.15%, 01/24/29 (Call 10/24/28)(a) | $ | 30,457 | $ | 33,764,591 | ||||
4.30%, 07/22/27 | 29,608 | 32,491,603 | ||||||
4.40%, 06/14/46(a) | 23,310 | 26,391,906 | ||||||
4.65%, 11/04/44 | 21,560 | 25,181,403 | ||||||
4.75%, 12/07/46 | 22,118 | 26,240,988 | ||||||
4.90%, 11/17/45 | 23,854 | 28,833,351 | ||||||
5.38%, 02/07/35(a) | 6,079 | 7,763,484 | ||||||
5.38%, 11/02/43(a) | 20,031 | 25,313,403 | ||||||
5.61%, 01/15/44 | 25,922 | 33,758,768 | ||||||
Series M, 3.45%, 02/13/23(a) | 21,928 | 22,693,572 | ||||||
Wells Fargo Bank N.A. | ||||||||
3.55%, 08/14/23 (Call 07/14/23) | 29,628 | 31,143,825 | ||||||
5.85%, 02/01/37 | 9,981 | 13,171,551 | ||||||
6.60%, 01/15/38(a) | 15,873 | 22,674,582 | ||||||
Westpac Banking Corp. | ||||||||
2.50%, 06/28/22(a) | 3,574 | 3,626,780 | ||||||
2.70%, 08/19/26 | 8,479 | 8,714,002 | ||||||
2.75%, 01/11/23 | 13,109 | 13,407,361 | ||||||
2.85%, 05/13/26 | 19,840 | 20,500,503 | ||||||
3.30%, 02/26/24(a) | 13,789 | 14,452,113 | ||||||
3.35%, 03/08/27 | 9,912 | 10,570,171 | ||||||
3.40%, 01/25/28(a) | 14,266 | 15,391,256 | ||||||
3.65%, 05/15/23(a) | 9,471 | 9,989,679 | ||||||
4.42%, 07/24/39 | 12,405 | 13,652,905 | ||||||
|
| |||||||
8,695,484,157 | ||||||||
Beverages — 3.3% | ||||||||
Anheuser-Busch Companies LLC/Anheuser-Busch InBev Worldwide Inc. | ||||||||
3.65%, 02/01/26 (Call 11/01/25)(a) | 55,187 | 59,094,284 | ||||||
4.70%, 02/01/36 (Call 08/01/35) | 62,036 | 71,975,718 | ||||||
4.90%, 02/01/46 (Call 08/01/45) | 113,731 | 136,065,699 | ||||||
Anheuser-Busch InBev Finance Inc. | ||||||||
2.63%, 01/17/23 | 1 | 511 | ||||||
3.30%, 02/01/23 (Call 12/01/22) | 25,202 | 26,206,156 | ||||||
3.65%, 02/01/26 (Call 11/01/25) | 3,839 | 4,121,917 | ||||||
3.70%, 02/01/24 | 11,432 | 12,198,280 | ||||||
4.00%, 01/17/43(a) | 8,246 | 8,628,103 | ||||||
4.63%, 02/01/44 | 13,068 | 14,878,192 | ||||||
4.90%, 02/01/46 (Call 08/01/45)(a) | 11,055 | 13,141,514 | ||||||
Anheuser-Busch InBev Worldwide Inc. | ||||||||
3.75%, 07/15/42(a) | 9,565 | 9,780,214 | ||||||
4.00%, 04/13/28 (Call 01/13/28) | 31,747 | 35,021,865 | ||||||
4.15%, 01/23/25 (Call 12/23/24) | 42,033 | 45,987,578 | ||||||
4.38%, 04/15/38 (Call 10/15/37) | 15,554 | 17,504,157 | ||||||
4.44%, 10/06/48 (Call 04/06/48) | 20,158 | 22,846,704 | ||||||
4.60%, 04/15/48 (Call 10/15/47) | 29,074 | 33,385,674 | ||||||
4.75%, 01/23/29 (Call 10/23/28)(a) | 43,405 | 50,406,756 | ||||||
4.75%, 04/15/58 (Call 10/15/57)(a) | 21,615 | 25,368,194 | ||||||
4.90%, 01/23/31 (Call 10/23/30)(a) | 13,752 | 16,458,440 | ||||||
4.95%, 01/15/42(a) | 18,440 | 21,833,362 | ||||||
5.45%, 01/23/39 (Call 07/23/38) | 21,615 | 27,188,279 | ||||||
5.55%, 01/23/49 (Call 07/23/48)(a) | 42,513 | 55,921,775 | ||||||
5.80%, 01/23/59 (Call 07/23/58)(a) | 21,397 | 29,013,202 | ||||||
8.20%, 01/15/39 | 8,179 | 13,011,907 | ||||||
Coca-Cola Co. (The) | ||||||||
1.75%, 09/06/24 | 5,075 | 5,048,160 | ||||||
2.13%, 09/06/29 | 11,259 | 11,108,464 | ||||||
2.25%, 09/01/26(a) | 13,765 | 13,895,210 | ||||||
2.50%, 04/01/23(a) | 5,888 | 6,026,961 | ||||||
2.88%, 10/27/25(a) | 23,011 | 24,182,775 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Beverages (continued) | ||||||||
3.20%, 11/01/23(a) | $ | 13,147 | $ | 13,854,276 | ||||
Constellation Brands Inc. | ||||||||
3.15%, 08/01/29 (Call 05/01/29) | 4,615 | 4,713,381 | ||||||
4.25%, 05/01/23(a) | 8,627 | 9,223,652 | ||||||
Diageo Capital PLC, 2.63%, 04/29/23 (Call 01/29/23)(a) | 19,659 | 20,048,881 | ||||||
Keurig Dr Pepper Inc. | ||||||||
4.06%, 05/25/23 (Call 04/25/23)(b) | 200 | 211,836 | ||||||
4.06%, 05/25/23 (Call 04/25/23)(a) | 20,830 | 22,033,235 | ||||||
4.42%, 05/25/25 (Call 03/25/25) | 6,568 | 7,207,268 | ||||||
4.60%, 05/25/28 (Call 02/25/28) | 19,457 | 22,050,122 | ||||||
5.09%, 05/25/48 (Call 11/25/47) | 9,456 | 11,343,264 | ||||||
Molson Coors Brewing Co. | ||||||||
2.10%, 07/15/21 (Call 06/15/21)(a) | 3,861 | 3,862,205 | ||||||
3.00%, 07/15/26 (Call 04/15/26)(a) | 21,905 | 22,071,160 | ||||||
4.20%, 07/15/46 (Call 01/15/46)(a) | 19,433 | 19,181,920 | ||||||
5.00%, 05/01/42(a) | 15,429 | 16,746,376 | ||||||
PepsiCo Inc. | ||||||||
2.38%, 10/06/26 (Call 07/06/26)(a) | 14,042 | 14,283,975 | ||||||
2.63%, 07/29/29 (Call 04/29/29)(a) | 12,150 | 12,548,575 | ||||||
2.75%, 03/01/23(a) | 12,068 | 12,458,571 | ||||||
2.75%, 04/30/25 (Call 01/30/25) | 18,578 | 19,397,572 | ||||||
2.85%, 02/24/26 (Call 11/24/25) | 8,933 | 9,336,762 | ||||||
2.88%, 10/15/49 (Call 04/15/49) | 10,000 | 9,749,014 | ||||||
3.00%, 10/15/27 (Call 07/15/27) | 8,843 | 9,394,929 | ||||||
3.38%, 07/29/49 (Call 01/29/49) | 9,656 | 10,299,598 | ||||||
3.45%, 10/06/46 (Call 04/06/46) | 17,339 | 18,796,388 | ||||||
3.60%, 03/01/24 (Call 12/01/23)(a) | 12,480 | 13,332,596 | ||||||
4.00%, 03/05/42 | 13,464 | 15,540,343 | ||||||
4.00%, 05/02/47 (Call 11/02/46)(a) | 10,942 | 12,860,286 | ||||||
4.45%, 04/14/46 (Call 10/14/45) | 14,264 | 17,842,498 | ||||||
|
| |||||||
1,158,688,734 | ||||||||
Biotechnology — 1.9% | ||||||||
Amgen Inc. | ||||||||
2.25%, 08/19/23 (Call 06/19/23) | 6,484 | 6,516,784 | ||||||
2.60%, 08/19/26 (Call 05/19/26) | 13,697 | 13,820,565 | ||||||
3.13%, 05/01/25 (Call 02/01/25) | 19,058 | 19,819,872 | ||||||
3.20%, 11/02/27 (Call 08/02/27)(a) | 5,564 | 5,816,816 | ||||||
3.63%, 05/22/24 (Call 02/22/24) | 14,067 | 14,923,082 | ||||||
4.40%, 05/01/45 (Call 11/01/44)(a) | 23,951 | 26,903,205 | ||||||
4.56%, 06/15/48 (Call 12/15/47)(a) | 20,051 | 23,070,677 | ||||||
4.66%, 06/15/51 (Call 12/15/50) | 28,811 | 33,660,148 | ||||||
5.15%, 11/15/41 (Call 05/15/41) | 17,097 | 20,725,794 | ||||||
Baxalta Inc., 4.00%, 06/23/25 (Call 03/23/25) | 14,663 | 15,817,469 | ||||||
Biogen Inc. | ||||||||
3.63%, 09/15/22(a) | 13,946 | 14,579,100 | ||||||
4.05%, 09/15/25 (Call 06/15/25) | 17,185 | 18,836,901 | ||||||
5.20%, 09/15/45 (Call 03/15/45) | 19,431 | 23,727,153 | ||||||
Celgene Corp. | ||||||||
2.75%, 02/15/23 (Call 01/15/23) | 13,495 | 13,751,038 | ||||||
3.25%, 02/20/23 (Call 01/20/23) | 9,430 | 9,751,137 | ||||||
3.45%, 11/15/27 (Call 08/15/27) | 19,328 | 20,547,865 | ||||||
3.63%, 05/15/24 (Call 02/15/24) | 13,766 | 14,536,406 | ||||||
3.88%, 08/15/25 (Call 05/15/25) | 35,512 | 38,281,418 | ||||||
3.90%, 02/20/28 (Call 11/20/27) | 17,480 | 19,191,493 | ||||||
4.35%, 11/15/47 (Call 05/15/47) | 13,373 | 15,628,224 | ||||||
4.55%, 02/20/48 (Call 08/20/47) | 18,816 | 22,737,074 | ||||||
4.63%, 05/15/44 (Call 11/15/43) | 7,837 | 9,401,232 | ||||||
5.00%, 08/15/45 (Call 02/15/45) | 24,552 | 31,146,375 | ||||||
Gilead Sciences Inc. | 9,287 | 9,439,825 |
Security | Par (000) | Value | ||||||
Biotechnology (continued) | ||||||||
2.95%, 03/01/27 (Call 12/01/26)(a) | $ | 21,753 | $ | 22,624,379 | ||||
3.25%, 09/01/22 (Call 07/01/22)(a) | 10,763 | 11,170,162 | ||||||
3.50%, 02/01/25 (Call 11/01/24)(a) | 9,302 | 9,883,409 | ||||||
3.65%, 03/01/26 (Call 12/01/25)(a) | 27,516 | 29,615,452 | ||||||
3.70%, 04/01/24 (Call 01/01/24)(a) | 12,860 | 13,676,161 | ||||||
4.00%, 09/01/36 (Call 03/01/36)(a) | 12,394 | 13,789,409 | ||||||
4.15%, 03/01/47 (Call 09/01/46)(a) | 18,718 | 20,726,623 | ||||||
4.50%, 02/01/45 (Call 08/01/44) | 9,677 | 11,152,859 | ||||||
4.60%, 09/01/35 (Call 03/01/35) | 13,680 | 16,166,350 | ||||||
4.75%, 03/01/46 (Call 09/01/45) | 27,821 | 33,313,639 | ||||||
4.80%, 04/01/44 (Call 10/01/43) | 21,907 | 26,174,247 | ||||||
5.65%, 12/01/41 (Call 06/01/41)(a) | 10,268 | 13,378,382 | ||||||
|
| |||||||
664,300,725 | ||||||||
Chemicals — 1.3% | ||||||||
Dow Chemical Co. (The) | ||||||||
3.00%, 11/15/22 (Call 08/15/22)(a) | 3,596 | 3,682,644 | ||||||
3.50%, 10/01/24 (Call 07/01/24)(a) | 6,424 | 6,716,787 | ||||||
3.63%, 05/15/26 (Call 03/15/26)(b) | 11,940 | 12,493,112 | ||||||
4.13%, 11/15/21 (Call 08/15/21) | 1,699 | 1,762,698 | ||||||
4.38%, 11/15/42 (Call 05/15/42) | 14,850 | 15,538,534 | ||||||
4.80%, 05/15/49 (Call 11/15/48)(a)(b) | 11,610 | 12,908,134 | ||||||
5.25%, 11/15/41 (Call 05/15/41) | 12,834 | 14,740,482 | ||||||
5.55%, 11/30/48 (Call 05/30/48)(b) | 3,073 | 3,748,728 | ||||||
7.38%, 11/01/29 | 11,483 | 15,212,648 | ||||||
9.40%, 05/15/39(a) | 11,933 | 19,659,014 | ||||||
DuPont de Nemours Inc. | ||||||||
4.21%, 11/15/23 (Call 10/15/23) | 27,371 | 29,378,635 | ||||||
4.49%, 11/15/25 (Call 09/15/25) | 32,830 | 36,372,107 | ||||||
4.73%, 11/15/28 (Call 08/15/28)(a) | 24,023 | 27,368,496 | ||||||
5.32%, 11/15/38 (Call 05/15/38)(a) | 18,263 | 21,892,589 | ||||||
5.42%, 11/15/48 (Call 05/15/48)(a) | 25,893 | 32,183,937 | ||||||
Eastman Chemical Co. | ||||||||
3.60%, 08/15/22 (Call 05/15/22) | 3,503 | 3,618,008 | ||||||
4.65%, 10/15/44 (Call 04/15/44)(a) | 9,754 | 10,389,653 | ||||||
Ecolab Inc., 2.70%, 11/01/26 (Call 08/01/26) | 15,686 | 16,087,562 | ||||||
LYB International Finance BV | ||||||||
4.00%, 07/15/23 | 8,585 | 9,096,466 | ||||||
4.88%, 03/15/44 (Call 09/15/43) | 4,895 | 5,328,188 | ||||||
5.25%, 07/15/43(a) | 14,476 | 16,492,130 | ||||||
LYB International Finance II BV, 3.50%, 03/02/27 (Call 12/02/26)(a) | 6,878 | 7,146,727 | ||||||
LYB International Finance III LLC, 4.20%, 10/15/49 (Call 04/15/49) | 12,000 | 12,046,489 | ||||||
LyondellBasell Industries NV | ||||||||
4.63%, 02/26/55 (Call 08/26/54) | 11,179 | 11,509,725 | ||||||
5.75%, 04/15/24 (Call 01/15/24) | 9,401 | 10,637,857 | ||||||
Mosaic Co. (The), 4.25%, 11/15/23 (Call 08/15/23)(a) | 7,668 | 8,177,040 | ||||||
Nutrien Ltd. | ||||||||
4.20%, 04/01/29 (Call 01/01/29)(a) | 13,000 | 14,377,488 | ||||||
5.00%, 04/01/49 (Call 10/01/48) | 8,820 | 10,386,865 | ||||||
Rohm & Haas Co., 7.85%, 07/15/29 | 10,730 | 14,337,384 | ||||||
Sherwin-Williams Co. (The) | ||||||||
2.95%, 08/15/29 (Call 05/15/29)(a) | 500 | 505,194 | ||||||
3.45%, 06/01/27 (Call 03/01/27)(a) | 25,171 | 26,529,086 | ||||||
4.50%, 06/01/47 (Call 12/01/46) | 11,902 | 13,388,810 | ||||||
|
| |||||||
443,713,217 | ||||||||
Commercial Services — 0.3% | ||||||||
Global Payments Inc. | 9,650 | 9,777,359 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Commercial Services (continued) | ||||||||
3.20%, 08/15/29 (Call 05/15/29)(a) | $ | 12,950 | $ | 13,197,852 | ||||
4.15%, 08/15/49 (Call 02/15/49)(a) | 6,578 | 6,896,834 | ||||||
4.80%, 04/01/26 (Call 01/01/26)(a) | 7,811 | 8,779,351 | ||||||
IHS Markit Ltd., 4.75%, 08/01/28 (Call 05/01/28) | 3,195 | 3,582,474 | ||||||
PayPal Holdings Inc. | ||||||||
2.40%, 10/01/24 (Call 09/01/24) | 15,651 | 15,767,129 | ||||||
2.65%, 10/01/26 (Call 08/01/26) | 17,285 | 17,493,173 | ||||||
2.85%, 10/01/29 (Call 07/01/29) | 19,930 | 20,040,855 | ||||||
RELX Capital Inc. | ||||||||
3.13%, 10/15/22 (Call 07/15/22) | 7,905 | 8,089,348 | ||||||
4.00%, 03/18/29 (Call 12/18/28)(a) | 11,342 | 12,471,475 | ||||||
S&P Global Inc., 4.40%, 02/15/26 (Call 11/15/25) | 3,190 | 3,573,196 | ||||||
|
| |||||||
119,669,046 | ||||||||
Computers — 3.7% | ||||||||
Apple Inc. | ||||||||
1.80%, 09/11/24 (Call 08/11/24) | 7,775 | 7,743,956 | ||||||
2.05%, 09/11/26 (Call 07/11/26) | 20,100 | 20,021,978 | ||||||
2.10%, 09/12/22 (Call 08/12/22)(a) | 6,816 | 6,874,935 | ||||||
2.20%, 09/11/29 (Call 06/11/29) | 20,645 | 20,298,521 | ||||||
2.40%, 01/13/23 (Call 12/13/22)(a) | 4,579 | 4,662,148 | ||||||
2.40%, 05/03/23(a) | 58,815 | 59,834,887 | ||||||
2.45%, 08/04/26 (Call 05/04/26) | 26,481 | 27,043,287 | ||||||
2.50%, 02/09/25(a) | 18,485 | 18,964,201 | ||||||
2.75%, 01/13/25 (Call 11/13/24) | 14,315 | 14,841,625 | ||||||
2.85%, 02/23/23 (Call 12/23/22) | 15,821 | 16,297,684 | ||||||
2.85%, 05/11/24 (Call 03/11/24) | 16,902 | 17,547,714 | ||||||
2.90%, 09/12/27 (Call 06/12/27)(a) | 24,775 | 25,907,213 | ||||||
2.95%, 09/11/49 (Call 03/11/49) | 20,025 | 19,423,347 | ||||||
3.00%, 02/09/24 (Call 12/09/23) | 20,506 | 21,408,209 | ||||||
3.00%, 06/20/27 (Call 03/20/27)(a) | 13,960 | 14,717,169 | ||||||
3.00%, 11/13/27 (Call 08/13/27)(a) | 18,064 | 19,066,568 | ||||||
3.20%, 05/13/25(a) | 27,153 | 28,893,507 | ||||||
3.20%, 05/11/27 (Call 02/11/27)(a) | 28,514 | 30,367,310 | ||||||
3.25%, 02/23/26 (Call 11/23/25)(a) | 36,051 | 38,424,436 | ||||||
3.35%, 02/09/27 (Call 11/09/26) | 26,978 | 28,973,274 | ||||||
3.45%, 05/06/24(a) | 27,832 | 29,683,293 | ||||||
3.45%, 02/09/45(a) | 21,916 | 23,182,085 | ||||||
3.75%, 09/12/47 (Call 03/12/47)(a) | 11,710 | 13,015,407 | ||||||
3.75%, 11/13/47 (Call 05/13/47) | 13,300 | 14,780,395 | ||||||
3.85%, 05/04/43(a) | 31,882 | 35,690,828 | ||||||
3.85%, 08/04/46 (Call 02/04/46)(a) | 19,418 | 21,806,715 | ||||||
4.25%, 02/09/47 (Call 08/09/46)(a) | 11,396 | 13,563,155 | ||||||
4.38%, 05/13/45(a) | 20,631 | 24,866,187 | ||||||
4.45%, 05/06/44(a) | 12,359 | 15,048,034 | ||||||
4.50%, 02/23/36 (Call 08/23/35)(a) | 14,631 | 17,775,698 | ||||||
4.65%, 02/23/46 (Call 08/23/45)(a) | 39,371 | 49,256,814 | ||||||
Dell International LLC/EMC Corp. | ||||||||
4.00%, 07/15/24 (Call 06/15/24)(b) | 11,880 | 12,433,621 | ||||||
4.90%, 10/01/26 (Call 08/01/26)(a)(b) | 36,210 | 39,286,155 | ||||||
5.30%, 10/01/29 (Call 07/01/29)(a)(b) | 19,430 | 21,461,851 | ||||||
5.45%, 06/15/23 (Call 04/15/23)(a)(b) | 37,388 | 40,617,467 | ||||||
6.02%, 06/15/26 (Call 03/15/26)(b) | 45,374 | 51,856,552 | ||||||
8.10%, 07/15/36 (Call 01/15/36)(a)(b) | 17,594 | 22,615,359 | ||||||
8.35%, 07/15/46 (Call 01/15/46)(a)(b) | 22,221 | 29,587,239 | ||||||
Hewlett Packard Enterprise Co. | ||||||||
4.40%, 10/15/22 (Call 08/15/22)(a) | 18,595 | 19,695,659 | ||||||
4.90%, 10/15/25 (Call 07/15/25)(a) | 26,860 | 29,984,221 | ||||||
6.20%, 10/15/35 (Call 04/15/35)(a) | 6,671 | 8,006,445 | ||||||
6.35%, 10/15/45 (Call 04/15/45)(a) | 18,038 | 21,438,793 | ||||||
HP Inc., 6.00%, 09/15/41(a) | 14,041 | 16,219,043 |
Security | Par (000) | Value | ||||||
Computers (continued) | ||||||||
IBM Credit LLC, 3.00%, 02/06/23(a) | $ | 7,496 | $ | 7,725,089 | ||||
International Business Machines Corp. | ||||||||
2.88%, 11/09/22 | 8,004 | 8,215,049 | ||||||
3.00%, 05/15/24(a) | 38,123 | 39,514,375 | ||||||
3.30%, 05/15/26(a) | 33,068 | 34,969,351 | ||||||
3.38%, 08/01/23(a) | 13,327 | 13,955,376 | ||||||
3.45%, 02/19/26(a) | 12,477 | 13,292,452 | ||||||
3.50%, 05/15/29(a) | 43,200 | 46,366,452 | ||||||
3.63%, 02/12/24 | 21,280 | 22,587,237 | ||||||
4.00%, 06/20/42(a) | 14,769 | 16,230,379 | ||||||
4.15%, 05/15/39 | 26,498 | 29,941,110 | ||||||
4.25%, 05/15/49(a) | 33,625 | 38,317,204 | ||||||
Seagate HDD Cayman | ||||||||
4.25%, 03/01/22 (Call 02/01/22) | 27 | 27,908 | ||||||
4.75%, 06/01/23(a) | 763 | 804,011 | ||||||
|
| |||||||
1,285,128,978 | ||||||||
Cosmetics & Personal Care — 0.3% | ||||||||
Procter & Gamble Co. (The) | ||||||||
2.45%, 11/03/26(a) | 16,460 | 16,920,032 | ||||||
2.85%, 08/11/27(a) | 13,896 | 14,700,378 | ||||||
3.10%, 08/15/23(a) | 13,314 | 13,996,698 | ||||||
5.55%, 03/05/37 | 760 | 1,054,667 | ||||||
Unilever Capital Corp. | ||||||||
2.13%, 09/06/29 (Call 06/06/29) | 12,975 | 12,763,513 | ||||||
2.20%, 05/05/22 (Call 04/05/22)(a) | 3,494 | 3,523,932 | ||||||
2.60%, 05/05/24 (Call 03/05/24) | 100 | 102,491 | ||||||
2.90%, 05/05/27 (Call 02/05/27)(a) | 3,524 | 3,683,252 | ||||||
3.50%, 03/22/28 (Call 12/22/27)(a) | 9,864 | 10,766,679 | ||||||
5.90%, 11/15/32(a) | 12,728 | 17,347,022 | ||||||
|
| |||||||
94,858,664 | ||||||||
Diversified Financial Services — 2.8% | ||||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | ||||||||
2.88%, 08/14/24 (Call 07/14/24) | 9,540 | 9,590,864 | ||||||
3.50%, 01/15/25 (Call 11/15/24)(a) | 11,214 | 11,579,167 | ||||||
3.65%, 07/21/27 (Call 04/21/27) | 10,385 | 10,696,959 | ||||||
4.88%, 01/16/24 (Call 12/16/23)(a) | 2,325 | 2,524,940 | ||||||
Air Lease Corp. | ||||||||
3.00%, 09/15/23 (Call 07/15/23)(a) | 5,818 | 5,925,042 | ||||||
3.75%, 06/01/26 (Call 04/01/26) | 9,385 | 9,860,396 | ||||||
American Express Co. | ||||||||
2.50%, 07/30/24 (Call 06/30/24) | 16,823 | 17,073,860 | ||||||
2.65%, 12/02/22(a) | 12,990 | 13,258,849 | ||||||
3.00%, 10/30/24 (Call 09/29/24)(a) | 23,848 | 24,791,637 | ||||||
3.13%, 05/20/26 (Call 04/20/26)(a) | 13,152 | 13,760,688 | ||||||
3.40%, 02/27/23 (Call 01/27/23)(a) | 16,744 | 17,438,675 | ||||||
3.40%, 02/22/24 (Call 01/22/24) | 18,324 | 19,248,972 | ||||||
3.70%, 08/03/23 (Call 07/03/23) | 21,553 | 22,783,812 | ||||||
4.05%, 12/03/42(a) | 9,571 | 11,093,487 | ||||||
4.20%, 11/06/25 (Call 10/06/25)(a) | 6,533 | 7,222,906 | ||||||
American Express Credit Corp., 3.30%, 05/03/27 (Call 04/03/27)(a) | 19,257 | 20,674,490 | ||||||
Ameriprise Financial Inc., 4.00%, 10/15/23 | 6,125 | 6,546,284 | ||||||
Brookfield Finance Inc. | ||||||||
4.00%, 04/01/24 (Call 02/01/24)(a) | 5,985 | 6,372,668 | ||||||
4.70%, 09/20/47 (Call 03/20/47) | 11,594 | 12,989,979 | ||||||
4.85%, 03/29/29 (Call 12/29/28)(a) | 750 | 852,304 | ||||||
Capital One Bank USA N.A., 3.38%, 02/15/23 | 11,222 | 11,557,415 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Diversified Financial Services (continued) | ||||||||
Capital One Financial Corp. | ||||||||
3.05%, 03/09/22 (Call 02/09/22) | $ | 3,822 | $ | 3,897,508 | ||||
3.20%, 01/30/23 (Call 12/30/22)(a) | 13,467 | 13,840,433 | ||||||
3.20%, 02/05/25 (Call 01/05/25) | 10,367 | 10,733,838 | ||||||
3.30%, 10/30/24 (Call 09/30/24) | 13,103 | 13,633,715 | ||||||
3.50%, 06/15/23(a) | 8,687 | 9,046,234 | ||||||
3.75%, 04/24/24 (Call 03/24/24)(a) | 7,975 | 8,424,453 | ||||||
3.75%, 07/28/26 (Call 06/28/26)(a) | 17,895 | 18,783,510 | ||||||
3.75%, 03/09/27 (Call 02/09/27)(a) | 12,552 | 13,312,951 | ||||||
3.80%, 01/31/28 (Call 12/31/27)(a) | 21,183 | 22,513,640 | ||||||
3.90%, 01/29/24 (Call 12/29/23)(a) | 15,054 | 15,962,145 | ||||||
4.20%, 10/29/25 (Call 09/29/25)(a) | 19,769 | 21,291,992 | ||||||
4.25%, 04/30/25 (Call 03/31/25)(a) | 7,377 | 8,029,640 | ||||||
Charles Schwab Corp. (The) | ||||||||
2.65%, 01/25/23 (Call 12/25/22)(a) | 6,026 | 6,146,499 | ||||||
3.85%, 05/21/25 (Call 03/21/25)(a) | 13,351 | 14,440,065 | ||||||
CME Group Inc. | ||||||||
3.00%, 09/15/22(a) | 6,049 | 6,249,570 | ||||||
3.00%, 03/15/25 (Call 12/15/24)(a) | 15,850 | 16,660,070 | ||||||
5.30%, 09/15/43 (Call 03/15/43) | 7,938 | 10,790,050 | ||||||
Discover Financial Services, 4.10%, 02/09/27 (Call 11/09/26)(a) | 12,148 | 13,004,745 | ||||||
GE Capital International Funding Co. Unlimited Co. | ||||||||
3.37%, 11/15/25(a) | 21,189 | 21,759,592 | ||||||
4.42%, 11/15/35 | 135,501 | 142,935,073 | ||||||
Intercontinental Exchange Inc. | ||||||||
3.75%, 12/01/25 (Call 09/01/25) | 19,974 | 21,618,146 | ||||||
3.75%, 09/21/28 (Call 06/21/28) | 2,050 | 2,255,997 | ||||||
4.00%, 10/15/23 | 7,057 | 7,545,378 | ||||||
4.25%, 09/21/48 (Call 03/21/48)(a) | 14,234 | 17,026,547 | ||||||
International Lease Finance Corp., 5.88%, 08/15/22(a) | 3,314 | 3,631,183 | ||||||
Jefferies Financial Group Inc., 5.50%, 10/18/23 (Call 01/18/23) | 7,196 | 7,834,258 | ||||||
Jefferies Group LLC/Jefferies Group Capital Finance Inc. | ||||||||
4.15%, 01/23/30 | 11,138 | 11,242,825 | ||||||
4.85%, 01/15/27(a) | 6,066 | 6,490,977 | ||||||
Mastercard Inc. | ||||||||
2.95%, 11/21/26 (Call 08/21/26)(a) | 9,305 | 9,801,271 | ||||||
2.95%, 06/01/29 (Call 03/01/29) | 21,140 | 22,294,525 | ||||||
3.38%, 04/01/24(a) | 6,990 | 7,448,529 | ||||||
3.65%, 06/01/49 (Call 12/01/48) | 8,222 | 9,263,977 | ||||||
Synchrony Financial | ||||||||
3.95%, 12/01/27 (Call 09/01/27)(a) | 13,857 | 14,408,734 | ||||||
4.25%, 08/15/24 (Call 05/15/24) | 12,928 | 13,680,108 | ||||||
4.50%, 07/23/25 (Call 04/23/25)(a) | 9,258 | 9,961,797 | ||||||
TD Ameritrade Holding Corp. | ||||||||
2.95%, 04/01/22 (Call 02/01/22)(a) | 6,249 | 6,385,142 | ||||||
3.30%, 04/01/27 (Call 01/01/27)(a) | 6,426 | 6,762,516 | ||||||
Visa Inc. | ||||||||
2.75%, 09/15/27 (Call 06/15/27)(a) | 6,898 | 7,257,293 | ||||||
2.80%, 12/14/22 (Call 10/14/22)(a) | 23,316 | 24,005,512 | ||||||
3.15%, 12/14/25 (Call 09/14/25) | 45,157 | 48,257,606 | ||||||
3.65%, 09/15/47 (Call 03/15/47)(a) | 15,919 | 17,940,509 | ||||||
4.15%, 12/14/35 (Call 06/14/35)(a) | 25,536 | 30,664,162 | ||||||
4.30%, 12/14/45 (Call 06/14/45) | 33,626 | 41,620,168 | ||||||
|
| |||||||
994,696,277 | ||||||||
Electric — 1.8% | ||||||||
Berkshire Hathaway Energy Co. | 8,722 | 9,441,985 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
4.45%, 01/15/49 (Call 07/15/48) | $ | 15,559 | $ | 18,586,386 | ||||
4.50%, 02/01/45 (Call 08/01/44) | 11,855 | 14,105,622 | ||||||
5.15%, 11/15/43 (Call 05/15/43) | 11,884 | 15,152,320 | ||||||
6.13%, 04/01/36(a) | 11,248 | 15,650,933 | ||||||
Commonwealth Edison Co., 4.00%, 03/01/48 (Call 09/01/47)(a) | 3,267 | 3,771,405 | ||||||
Connecticut Light & Power Co. (The), 4.00%, 04/01/48 (Call 10/01/47) | 9,090 | 10,616,277 | ||||||
Consolidated Edison Co. of New York Inc. | ||||||||
4.45%, 03/15/44 (Call 09/15/43) | 10,251 | 12,081,208 | ||||||
4.63%, 12/01/54 (Call 06/01/54) | 9,290 | 11,132,025 | ||||||
Dominion Energy Inc., 3.90%, 10/01/25 (Call 07/01/25) | 9,981 | 10,742,155 | ||||||
Duke Energy Carolinas LLC, 5.30%, 02/15/40 | 8,597 | 11,165,299 | ||||||
Duke Energy Corp. | ||||||||
2.65%, 09/01/26 (Call 06/01/26) | 17,958 | 18,123,905 | ||||||
3.15%, 08/15/27 (Call 05/15/27) | 7,348 | 7,631,574 | ||||||
3.75%, 04/15/24 (Call 01/15/24) | 10,457 | 11,113,005 | ||||||
3.75%, 09/01/46 (Call 03/01/46)(a) | 19,939 | 20,746,641 | ||||||
Duke Energy Florida LLC, 6.40%, 06/15/38 | 7,534 | 10,969,847 | ||||||
Emera U.S. Finance LP | ||||||||
3.55%, 06/15/26 (Call 03/15/26)(a) | 14,669 | 15,405,070 | ||||||
4.75%, 06/15/46 (Call 12/15/45)(a) | 11,504 | 13,442,418 | ||||||
Entergy Corp., 2.95%, 09/01/26 | 10,628 | 10,841,173 | ||||||
Evergy Inc. | ||||||||
2.45%, 09/15/24 (Call 08/15/24) | 10,195 | 10,260,061 | ||||||
2.90%, 09/15/29 (Call 06/15/29) | 10,000 | 10,050,318 | ||||||
Exelon Corp. | ||||||||
3.40%, 04/15/26 (Call 01/15/26)(a) | 8,308 | 8,740,050 | ||||||
3.50%, 06/01/22 (Call 05/01/22)(a) | 4,728 | 4,863,358 | ||||||
3.95%, 06/15/25 (Call 03/15/25)(a) | 7,684 | 8,311,681 | ||||||
4.45%, 04/15/46 (Call 10/15/45) | 14,224 | 16,053,069 | ||||||
Exelon Generation Co. LLC | ||||||||
5.60%, 06/15/42 (Call 12/15/41)(a) | 4,040 | 4,771,633 | ||||||
6.25%, 10/01/39(a) | 13,577 | 16,981,180 | ||||||
FirstEnergy Corp. | ||||||||
Series B, 3.90%, 07/15/27 (Call 04/15/27) | 13,831 | 14,862,516 | ||||||
Series B, 4.25%, 03/15/23 (Call 12/15/22)(a) | 7,297 | 7,727,033 | ||||||
Series C, 4.85%, 07/15/47 (Call 01/15/47) | 14,119 | 16,882,317 | ||||||
Series C, 7.38%, 11/15/31(a) | 22,152 | 31,486,913 | ||||||
Florida Power & Light Co. | ||||||||
3.15%, 10/01/49 (Call 04/01/49) | 12,640 | 12,815,978 | ||||||
3.95%, 03/01/48 (Call 09/01/47)(a) | 7,924 | 9,213,653 | ||||||
Georgia Power Co., 4.30%, 03/15/42(a) | 14,833 | 16,322,941 | ||||||
MidAmerican Energy Co., 4.25%, 07/15/49 (Call 01/15/49) | 9,010 | 10,997,225 | ||||||
NextEra Energy Capital Holdings Inc. | ||||||||
2.75%, 11/01/29 (Call 08/01/29) | 7,385 | 7,430,292 | ||||||
3.15%, 04/01/24 (Call 03/01/24)(a) | 7,180 | 7,455,985 | ||||||
3.55%, 05/01/27 (Call 02/01/27) | 7,828 | 8,334,455 | ||||||
Public Service Enterprise Group Inc., 2.88%, 06/15/24 (Call 05/15/24) | 8,685 | 8,912,670 | ||||||
Sempra Energy | ||||||||
3.25%, 06/15/27 (Call 03/15/27)(a) | 3,646 | 3,737,180 | ||||||
3.40%, 02/01/28 (Call 11/01/27)(a) | 7,784 | 7,960,476 | ||||||
3.80%, 02/01/38 (Call 08/01/37) | 13,055 | 13,277,841 | ||||||
4.00%, 02/01/48 (Call 08/01/47) | 12,667 | 13,262,590 | ||||||
6.00%, 10/15/39(a) | 6,967 | 8,861,913 | ||||||
Southern California Edison Co. | ||||||||
4.00%, 04/01/47 (Call 10/01/46)(a) | 15,156 | 15,895,760 | ||||||
4.65%, 10/01/43 (Call 04/01/43) | 14,408 | 16,268,898 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Series C, 4.13%, 03/01/48 (Call 09/01/47) | $ | 14,851 | $ | 15,832,382 | ||||
Southern Co. (The) | ||||||||
2.95%, 07/01/23 (Call 05/01/23)(a) | 17,238 | 17,647,385 | ||||||
3.25%, 07/01/26 (Call 04/01/26)(a) | 18,194 | 18,978,911 | ||||||
4.40%, 07/01/46 (Call 01/01/46)(a) | 24,352 | 27,429,676 | ||||||
Virginia Electric & Power Co. | ||||||||
Series A, 3.15%, 01/15/26 (Call 10/15/25) | 5,425 | 5,672,636 | ||||||
Series A, 3.50%, 03/15/27 | 10,027 | 10,769,988 | ||||||
|
| |||||||
648,788,212 | ||||||||
Electronics — 0.1% | ||||||||
Fortive Corp., 3.15%, 06/15/26 (Call 03/15/26)(a) | 3,843 | 3,946,106 | ||||||
Honeywell International Inc. | ||||||||
1.85%, 11/01/21 (Call 10/01/21) | 1,734 | 1,737,330 | ||||||
2.30%, 08/15/24 (Call 07/15/24)(a) | 5,625 | 5,725,691 | ||||||
2.50%, 11/01/26 (Call 08/01/26) | 23,913 | 24,465,144 | ||||||
2.70%, 08/15/29 (Call 05/15/29) | 4,263 | 4,401,148 | ||||||
|
| |||||||
40,275,419 | ||||||||
Environmental Control — 0.2% | ||||||||
Republic Services Inc. | ||||||||
2.50%, 08/15/24 (Call 07/15/24)(a) | 3,295 | 3,349,178 | ||||||
3.55%, 06/01/22 (Call 03/01/22)(a) | 5,703 | 5,926,157 | ||||||
3.95%, 05/15/28 (Call 02/15/28) | 6,861 | 7,608,811 | ||||||
Waste Management Inc. | ||||||||
2.95%, 06/15/24 (Call 05/15/24)(a) | 8,683 | 8,986,127 | ||||||
3.15%, 11/15/27 (Call 08/15/27)(a) | 11,530 | 12,161,787 | ||||||
3.20%, 06/15/26 (Call 04/15/26)(a) | 10,657 | 11,295,549 | ||||||
3.45%, 06/15/29 (Call 03/15/29) | 12,903 | 13,918,722 | ||||||
4.10%, 03/01/45 (Call 09/01/44)(a) | 5,435 | 6,197,651 | ||||||
4.15%, 07/15/49 (Call 01/15/49) | 12,627 | 14,629,794 | ||||||
|
| |||||||
84,073,776 | ||||||||
Food — 1.5% | ||||||||
Campbell Soup Co. | ||||||||
3.65%, 03/15/23 (Call 02/15/23)(a) | 13,182 | 13,739,187 | ||||||
3.95%, 03/15/25 (Call 01/15/25)(a) | 7,556 | 8,042,362 | ||||||
4.15%, 03/15/28 (Call 12/15/27)(a) | 6,279 | 6,771,429 | ||||||
4.80%, 03/15/48 (Call 09/15/47)(a) | 2,958 | 3,345,038 | ||||||
Conagra Brands Inc. | ||||||||
3.20%, 01/25/23 (Call 10/25/22)(a) | 6,639 | 6,820,241 | ||||||
4.30%, 05/01/24 (Call 04/01/24) | 11,194 | 12,039,814 | ||||||
4.60%, 11/01/25 (Call 09/01/25)(a) | 6,407 | 7,093,779 | ||||||
4.85%, 11/01/28 (Call 08/01/28)(a) | 15,829 | 17,981,139 | ||||||
5.30%, 11/01/38 (Call 05/01/38) | 17,867 | 20,762,635 | ||||||
5.40%, 11/01/48 (Call 05/01/48)(a) | 7,208 | 8,526,624 | ||||||
General Mills Inc. | ||||||||
3.20%, 02/10/27 (Call 11/10/26)(a) | 7,147 | 7,542,620 | ||||||
3.70%, 10/17/23 (Call 09/17/23)(a) | 8,676 | 9,164,588 | ||||||
4.00%, 04/17/25 (Call 02/17/25)(a) | 12,381 | 13,440,068 | ||||||
4.20%, 04/17/28 (Call 01/17/28)(a) | 17,083 | 19,081,252 | ||||||
JM Smucker Co. (The) | ||||||||
3.50%, 10/15/21(a) | 3,371 | 3,470,063 | ||||||
3.50%, 03/15/25(a) | 5,410 | 5,693,377 | ||||||
Kellogg Co., 3.25%, 04/01/26(a) | 7,844 | 8,167,354 | ||||||
Kraft Heinz Foods Co. | ||||||||
3.00%, 06/01/26 (Call 03/01/26)(a) | 13,499 | 13,441,154 | ||||||
3.75%, 04/01/30 (Call 01/01/30)(a)(b) | 10,350 | 10,567,695 | ||||||
3.95%, 07/15/25 (Call 04/15/25) | 29,588 | 31,152,276 | ||||||
4.00%, 06/15/23 (Call 05/15/23)(a) | 16,506 | 17,330,097 | ||||||
4.38%, 06/01/46 (Call 12/01/45) | 34,495 | 33,567,085 | ||||||
4.63%, 01/30/29 (Call 10/30/28)(a) | 21,281 | 23,267,111 |
Security | Par (000) | Value | ||||||
Food (continued) | ||||||||
4.88%, 10/01/49 (Call 04/01/49)(a)(b) | $ | 16,680 | $ | 17,204,212 | ||||
5.00%, 07/15/35 (Call 01/15/35)(a) | 5,927 | 6,393,504 | ||||||
5.00%, 06/04/42(a) | 20,477 | 21,500,850 | ||||||
5.20%, 07/15/45 (Call 01/15/45) | 22,332 | 23,925,082 | ||||||
6.50%, 02/09/40 | 8,054 | 9,757,876 | ||||||
6.88%, 01/26/39(a) | 7,345 | 9,151,484 | ||||||
Kroger Co. (The) | ||||||||
2.65%, 10/15/26 (Call 07/15/26)(a) | 9,568 | 9,527,908 | ||||||
4.45%, 02/01/47 (Call 08/01/46)(a) | 9,041 | 9,353,243 | ||||||
McCormick & Co. Inc./MD | ||||||||
2.70%, 08/15/22 (Call 07/15/22)(a) | 6,128 | 6,234,190 | ||||||
3.40%, 08/15/27 (Call 05/15/27)(a) | 9,516 | 10,016,834 | ||||||
Mondelez International Inc., 3.63%, 05/07/23 (Call 04/07/23)(a) | 7,531 | 7,894,884 | ||||||
Sysco Corp. | �� | |||||||
3.25%, 07/15/27 (Call 04/15/27)(a) | 10,679 | 11,229,242 | ||||||
3.30%, 07/15/26 (Call 04/15/26) | 2,811 | 2,956,961 | ||||||
3.75%, 10/01/25 (Call 07/01/25)(a) | 8,224 | 8,865,225 | ||||||
Tyson Foods Inc. | ||||||||
3.55%, 06/02/27 (Call 03/02/27)(a) | 13,076 | 14,001,281 | ||||||
3.95%, 08/15/24 (Call 05/15/24)(a) | 6,213 | 6,668,110 | ||||||
4.00%, 03/01/26 (Call 01/01/26)(a) | 13,468 | 14,708,326 | ||||||
4.35%, 03/01/29 (Call 12/01/28)(a) | 18,778 | 21,364,797 | ||||||
4.50%, 06/15/22 (Call 03/15/22)(a) | 2,797 | 2,960,246 | ||||||
4.55%, 06/02/47 (Call 12/02/46) | 7,568 | 8,561,576 | ||||||
5.10%, 09/28/48 (Call 03/28/48)(a) | 14,817 | 18,178,936 | ||||||
|
| |||||||
541,461,755 | ||||||||
Forest Products & Paper — 0.2% | ||||||||
International Paper Co. | ||||||||
3.00%, 02/15/27 (Call 11/15/26)(a) | 14,628 | 14,931,819 | ||||||
3.65%, 06/15/24 (Call 03/15/24)(a) | 5,238 | 5,524,550 | ||||||
4.35%, 08/15/48 (Call 02/15/48)(a) | 10,777 | 11,172,525 | ||||||
4.40%, 08/15/47 (Call 02/15/47) | 10,663 | 11,062,416 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 12,354 | 13,359,266 | ||||||
|
| |||||||
56,050,576 | ||||||||
Gas — 0.2% | ||||||||
Atmos Energy Corp., 4.13%, 10/15/44 (Call 04/15/44) | 4,694 | 5,420,847 | ||||||
NiSource Inc. | ||||||||
2.95%, 09/01/29 (Call 06/01/29) | 6,200 | 6,256,312 | ||||||
3.49%, 05/15/27 (Call 02/15/27) | 11,267 | 11,864,007 | ||||||
3.95%, 03/30/48 (Call 09/30/47) | 11,218 | 11,971,899 | ||||||
4.38%, 05/15/47 (Call 11/15/46) | 11,185 | 12,595,641 | ||||||
4.80%, 02/15/44 (Call 08/15/43) | 9,230 | 10,803,456 | ||||||
|
| |||||||
58,912,162 | ||||||||
Health Care – Products — 1.4% | ||||||||
Abbott Laboratories | ||||||||
2.55%, 03/15/22(a) | 4,880 | 4,951,582 | ||||||
2.90%, 11/30/21 (Call 10/30/21)(a) | 2,830 | 2,886,629 | ||||||
2.95%, 03/15/25 (Call 12/15/24)(a) | 14,125 | 14,741,654 | ||||||
3.40%, 11/30/23 (Call 09/30/23)(a) | 10,399 | 10,976,118 | ||||||
3.75%, 11/30/26 (Call 08/30/26)(a) | 11,533 | 12,622,330 | ||||||
4.75%, 11/30/36 (Call 05/30/36) | 28,613 | 35,142,037 | ||||||
4.90%, 11/30/46 (Call 05/30/46)(a) | 30,745 | 39,792,605 | ||||||
Becton Dickinson and Co. | ||||||||
3.36%, 06/06/24 (Call 04/06/24) | 14,823 | 15,509,975 | ||||||
3.70%, 06/06/27 (Call 03/06/27)(a) | 24,034 | 25,813,196 | ||||||
3.73%, 12/15/24 (Call 09/15/24)(a) | 20,302 | 21,686,464 | ||||||
4.67%, 06/06/47 (Call 12/06/46)(a) | 15,074 | 17,893,135 | ||||||
4.69%, 12/15/44 (Call 06/15/44)(a) | 10,794 | 12,672,982 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Products (continued) | ||||||||
Boston Scientific Corp. | ||||||||
3.45%, 03/01/24 (Call 02/01/24) | $ | 6,841 | $ | 7,180,390 | ||||
3.75%, 03/01/26 (Call 01/01/26)(a) | 13,693 | 14,773,731 | ||||||
3.85%, 05/15/25(a) | 8,547 | 9,211,310 | ||||||
4.00%, 03/01/28 (Call 12/01/27)(a) | 14,403 | 16,024,935 | ||||||
4.00%, 03/01/29 (Call 12/01/28)(a) | 12,387 | 13,779,995 | ||||||
4.55%, 03/01/39 (Call 09/01/38)(a) | 6,580 | 7,760,906 | ||||||
4.70%, 03/01/49 (Call 09/01/48) | 9,974 | 12,178,772 | ||||||
Medtronic Inc. | ||||||||
3.50%, 03/15/25 | 37,013 | 39,742,953 | ||||||
4.38%, 03/15/35 | 25,566 | 30,479,555 | ||||||
4.63%, 03/15/45 | 16,884 | 21,677,653 | ||||||
Stryker Corp. | ||||||||
3.38%, 11/01/25 (Call 08/01/25) | 5,392 | 5,741,194 | ||||||
3.50%, 03/15/26 (Call 12/15/25) | 11,586 | 12,380,687 | ||||||
4.63%, 03/15/46 (Call 09/15/45) | 11,560 | 14,064,765 | ||||||
Thermo Fisher Scientific Inc. | ||||||||
2.60%, 10/01/29 (Call 07/01/29) | 8,060 | 8,033,208 | ||||||
2.95%, 09/19/26 (Call 06/19/26) | 19,919 | 20,658,473 | ||||||
3.00%, 04/15/23 (Call 02/15/23)(a) | 5,749 | 5,929,979 | ||||||
3.20%, 08/15/27 (Call 05/15/27)(a) | 9,292 | 9,749,233 | ||||||
4.10%, 08/15/47 (Call 02/15/47)(a) | 8,540 | 9,628,057 | ||||||
4.15%, 02/01/24 (Call 11/01/23) | 5,095 | 5,478,541 | ||||||
Zimmer Biomet Holdings Inc. | ||||||||
3.15%, 04/01/22 (Call 02/01/22)(a) | 2,898 | 2,957,572 | ||||||
3.55%, 04/01/25 (Call 01/01/25) | 17,417 | 18,417,554 | ||||||
|
| |||||||
500,538,170 | ||||||||
Health Care – Services — 2.3% | ||||||||
Aetna Inc. | ||||||||
2.75%, 11/15/22 (Call 08/15/22) | 7,167 | 7,268,667 | ||||||
2.80%, 06/15/23 (Call 04/15/23) | 9,815 | 9,961,991 | ||||||
3.50%, 11/15/24 (Call 08/15/24) | 11,857 | 12,363,894 | ||||||
3.88%, 08/15/47 (Call 02/15/47) | 9,868 | 9,551,447 | ||||||
6.63%, 06/15/36(a) | 11,346 | 14,857,306 | ||||||
Anthem Inc. | ||||||||
2.38%, 01/15/25 (Call 12/15/24) | 10,200 | 10,208,641 | ||||||
2.88%, 09/15/29 (Call 06/15/29)(a) | 10,000 | 9,902,200 | ||||||
2.95%, 12/01/22 (Call 11/01/22) | 6,130 | 6,270,223 | ||||||
3.30%, 01/15/23(a) | 9,670 | 10,039,190 | ||||||
3.35%, 12/01/24 (Call 10/01/24) | 10,831 | 11,308,698 | ||||||
3.50%, 08/15/24 (Call 05/15/24) | 8,479 | 8,925,296 | ||||||
3.65%, 12/01/27 (Call 09/01/27) | 15,915 | 16,839,781 | ||||||
3.70%, 09/15/49 (Call 03/15/49)(a) | 10,000 | 9,659,217 | ||||||
4.10%, 03/01/28 (Call 12/01/27)(a) | 13,472 | 14,625,179 | ||||||
4.38%, 12/01/47 (Call 06/01/47) | 12,400 | 13,307,219 | ||||||
4.55%, 03/01/48 (Call 09/01/47)(a) | 10,826 | 11,930,484 | ||||||
4.63%, 05/15/42(a) | 10,881 | 11,994,752 | ||||||
4.65%, 01/15/43 | 13,512 | 14,962,417 | ||||||
4.65%, 08/15/44 (Call 02/15/44) | 12,213 | 13,570,183 | ||||||
CommonSpirit Health | ||||||||
2.76%, 10/01/24 (Call 07/01/24) | 10,000 | 10,154,035 | ||||||
3.35%, 10/01/29 (Call 04/01/29) | 13,344 | 13,456,435 | ||||||
4.19%, 10/01/49 (Call 04/01/49)(a) | 9,095 | 9,310,035 | ||||||
HCA Inc. | ||||||||
4.13%, 06/15/29 (Call 03/15/29)(a) | 20,554 | 21,777,224 | ||||||
4.50%, 02/15/27 (Call 08/15/26)(a) | 9,703 | 10,470,231 | ||||||
4.75%, 05/01/23 | 6,708 | 7,184,256 | ||||||
5.00%, 03/15/24 | 22,006 | 24,010,005 | ||||||
5.13%, 06/15/39 (Call 12/15/38)(a) | 15,537 | 17,054,054 | ||||||
5.25%, 04/15/25 | 16,191 | 18,026,274 |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
5.25%, 06/15/26 (Call 12/15/25)(a) | $ | 27,886 | $ | 31,209,074 | ||||
5.25%, 06/15/49 (Call 12/15/48) | 19,830 | 21,948,367 | ||||||
5.50%, 06/15/47 (Call 12/15/46) | 16,689 | 19,008,938 | ||||||
Humana Inc., 4.95%, 10/01/44 (Call 04/01/44) | 9,030 | 10,319,121 | ||||||
Kaiser Foundation Hospitals, 4.15%, 05/01/47 (Call 11/01/46) | 17,102 | 20,065,790 | ||||||
Laboratory Corp. of America Holdings | ||||||||
3.60%, 02/01/25 (Call 11/01/24)(a) | 12,700 | 13,414,186 | ||||||
4.70%, 02/01/45 (Call 08/01/44) | 6,036 | 6,746,381 | ||||||
UnitedHealth Group Inc. | ||||||||
2.38%, 10/15/22 | 9,330 | 9,456,503 | ||||||
2.38%, 08/15/24(a) | 11,500 | 11,661,032 | ||||||
2.88%, 03/15/23 | 8,221 | 8,450,467 | ||||||
2.88%, 08/15/29(a) | 16,372 | 16,814,553 | ||||||
2.95%, 10/15/27(a) | 17,707 | 18,304,585 | ||||||
3.10%, 03/15/26(a) | 10,165 | 10,626,795 | ||||||
3.45%, 01/15/27(a) | 4,975 | 5,318,153 | ||||||
3.50%, 06/15/23(a) | 4,983 | 5,235,956 | ||||||
3.50%, 02/15/24 | 7,784 | 8,238,351 | ||||||
3.50%, 08/15/39 (Call 02/15/39)(a) | 13,010 | 13,580,382 | ||||||
3.70%, 08/15/49 (Call 02/15/49)(a) | 14,435 | 15,275,192 | ||||||
3.75%, 07/15/25(a) | 23,706 | 25,703,472 | ||||||
3.75%, 10/15/47 (Call 04/15/47) | 10,085 | 10,692,355 | ||||||
3.85%, 06/15/28 | 15,600 | 17,208,766 | ||||||
3.88%, 12/15/28(a) | 8,623 | 9,580,763 | ||||||
3.88%, 08/15/59 (Call 02/15/59)(a) | 15,970 | 16,807,290 | ||||||
4.20%, 01/15/47 (Call 07/15/46) | 12,119 | 13,718,469 | ||||||
4.25%, 03/15/43 (Call 09/15/42)(a) | 7,889 | 8,875,631 | ||||||
4.25%, 06/15/48 (Call 12/15/47)(a) | 12,515 | 14,344,448 | ||||||
4.45%, 12/15/48 (Call 06/15/48)(a) | 9,048 | 10,704,636 | ||||||
4.63%, 07/15/35(a) | 13,600 | 16,471,405 | ||||||
4.75%, 07/15/45 | 18,805 | 22,917,240 | ||||||
5.80%, 03/15/36 | 10,699 | 14,290,222 | ||||||
6.88%, 02/15/38 | 12,419 | 18,417,232 | ||||||
|
| |||||||
794,395,089 | ||||||||
Holding Companies – Diversified — 0.0% | ||||||||
Ares Capital Corp., 3.50%, 02/10/23 (Call 01/10/23)(a) | 726 | 736,761 | ||||||
|
| |||||||
Housewares — 0.1% | ||||||||
Newell Brands Inc. | ||||||||
3.85%, 04/01/23 (Call 02/01/23) | 15,108 | 15,633,112 | ||||||
4.20%, 04/01/26 (Call 01/01/26) | 27,254 | 28,471,172 | ||||||
|
| |||||||
44,104,284 | ||||||||
Insurance — 2.1% | ||||||||
Aflac Inc., 3.63%, 11/15/24 | 6,586 | 7,042,308 | ||||||
American International Group Inc. | ||||||||
3.75%, 07/10/25 (Call 04/10/25)(a) | 23,024 | 24,590,564 | ||||||
3.88%, 01/15/35 (Call 07/15/34) | 14,679 | 15,408,163 | ||||||
3.90%, 04/01/26 (Call 01/01/26) | 6,582 | 7,075,091 | ||||||
4.13%, 02/15/24(a) | 10,337 | 11,109,864 | ||||||
4.20%, 04/01/28 (Call 01/01/28)(a) | 8,492 | 9,332,277 | ||||||
4.38%, 01/15/55 (Call 07/15/54)(a) | 9,847 | 10,605,165 | ||||||
4.50%, 07/16/44 (Call 01/16/44) | 27,203 | 30,517,305 | ||||||
4.75%, 04/01/48 (Call 10/01/47) | 11,032 | 12,992,057 | ||||||
4.80%, 07/10/45 (Call 01/10/45) | 6,934 | 8,145,808 | ||||||
6.25%, 05/01/36 | 6,656 | 8,810,735 | ||||||
Aon Corp., 3.75%, 05/02/29 (Call 02/02/29) | 2,925 | 3,148,161 | ||||||
Aon PLC, 3.88%, 12/15/25 (Call 09/15/25) | 15,804 | 17,091,881 | ||||||
Athene Holding Ltd., 4.13%, 01/12/28 (Call 10/12/27)(a) | 11,780 | 12,246,058 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
AXA Equitable Holdings Inc. | ||||||||
3.90%, 04/20/23 (Call 03/20/23)(a) | $ | 6,883 | $ | 7,210,452 | ||||
4.35%, 04/20/28 (Call 01/20/28)(a) | 19,702 | 21,116,280 | ||||||
5.00%, 04/20/48 (Call 10/20/47)(a) | 16,365 | 17,417,733 | ||||||
Berkshire Hathaway Finance Corp. | ||||||||
4.20%, 08/15/48 (Call 02/15/48) | 24,608 | 28,966,913 | ||||||
4.25%, 01/15/49 (Call 07/15/48) | 26,998 | 32,113,651 | ||||||
5.75%, 01/15/40(a) | 3,996 | 5,551,289 | ||||||
Berkshire Hathaway Inc. | ||||||||
2.75%, 03/15/23 (Call 01/15/23)(a) | 19,110 | 19,678,935 | ||||||
3.13%, 03/15/26 (Call 12/15/25)(a) | 30,640 | 32,592,084 | ||||||
4.50%, 02/11/43(a) | 12,691 | 15,431,368 | ||||||
Brighthouse Financial Inc. | ||||||||
3.70%, 06/22/27 (Call 03/22/27)(a) | 14,033 | 13,787,119 | ||||||
4.70%, 06/22/47 (Call 12/22/46) | 18,855 | 16,779,264 | ||||||
Chubb Corp. (The), 6.00%, 05/11/37 | 10,769 | 15,017,465 | ||||||
Chubb INA Holdings Inc. | ||||||||
2.88%, 11/03/22 (Call 09/03/22)(a) | 8,806 | 9,056,270 | ||||||
3.15%, 03/15/25(a) | 15,453 | 16,360,620 | ||||||
3.35%, 05/03/26 (Call 02/03/26)(a) | 14,232 | 15,303,388 | ||||||
4.35%, 11/03/45 (Call 05/03/45) | 15,927 | 19,550,901 | ||||||
Manulife Financial Corp. | ||||||||
4.15%, 03/04/26(a) | 4,639 | 5,157,353 | ||||||
5.38%, 03/04/46(a) | 8,449 | 11,204,634 | ||||||
Marsh & McLennan Companies Inc. | ||||||||
3.88%, 03/15/24 (Call 02/15/24) | 10,276 | 10,970,466 | ||||||
4.38%, 03/15/29 (Call 12/15/28) | 25,356 | 28,900,495 | ||||||
4.90%, 03/15/49 (Call 09/15/48)(a) | 14,100 | 17,717,005 | ||||||
MetLife Inc. | ||||||||
3.60%, 04/10/24(a) | 8,879 | 9,427,677 | ||||||
4.05%, 03/01/45(a) | 11,417 | 12,872,499 | ||||||
4.13%, 08/13/42(a) | 11,718 | 13,319,398 | ||||||
4.60%, 05/13/46 (Call 11/13/45)(a) | 6,844 | 8,364,027 | ||||||
4.88%, 11/13/43(a) | 12,203 | 15,191,511 | ||||||
5.70%, 06/15/35 | 10,455 | 14,092,513 | ||||||
5.88%, 02/06/41(a) | 10,442 | 14,260,418 | ||||||
6.38%, 06/15/34(a) | 8,321 | 11,788,618 | ||||||
Series D, 4.37%, 09/15/23(a) | 10,818 | 11,744,736 | ||||||
Progressive Corp. (The), 4.13%, 04/15/47 (Call 10/15/46) | 10,464 | 12,184,451 | ||||||
Prudential Financial Inc. | ||||||||
3.70%, 03/13/51 (Call 09/13/50) | 17,075 | 17,852,614 | ||||||
3.91%, 12/07/47 (Call 06/07/47)(a) | 9,046 | 9,739,602 | ||||||
3.94%, 12/07/49 (Call 06/07/49) | 8,486 | 9,187,525 | ||||||
4.35%, 02/25/50 (Call 08/25/49) | 8,699 | 10,089,201 | ||||||
4.60%, 05/15/44 | 9,634 | 11,381,156 | ||||||
5.70%, 12/14/36 | 5,099 | 6,755,475 | ||||||
Travelers Companies Inc. (The) | ||||||||
5.35%, 11/01/40(a) | 8,391 | 11,195,573 | ||||||
6.25%, 06/15/37 | 10,068 | 14,376,235 | ||||||
|
| |||||||
751,822,351 | ||||||||
Internet — 1.1% | ||||||||
Alphabet Inc. | ||||||||
2.00%, 08/15/26 (Call 05/15/26) | 13,434 | 13,439,085 | ||||||
3.38%, 02/25/24(a) | 6,879 | 7,322,070 | ||||||
Amazon.com Inc. | ||||||||
2.40%, 02/22/23 (Call 01/22/23) | 7,453 | 7,590,290 | ||||||
2.50%, 11/29/22 (Call 08/29/22)(a) | 6,797 | 6,932,353 | ||||||
2.80%, 08/22/24 (Call 06/22/24)(a) | 27,904 | 28,997,067 | ||||||
3.15%, 08/22/27 (Call 05/22/27)(a) | 39,929 | 42,591,709 |
Security | Par (000) | Value | ||||||
Internet (continued) | ||||||||
3.30%, 12/05/21 (Call 10/05/21) | $ | 2,973 | $ | 3,059,716 | ||||
3.80%, 12/05/24 (Call 09/05/24)(a) | 14,189 | 15,420,835 | ||||||
3.88%, 08/22/37 (Call 02/22/37) | 36,279 | 41,198,770 | ||||||
4.05%, 08/22/47 (Call 02/22/47)(a) | 39,608 | 46,985,747 | ||||||
4.25%, 08/22/57 (Call 02/22/57)(a) | 19,949 | 24,404,236 | ||||||
4.80%, 12/05/34 (Call 06/05/34)(a) | 14,919 | 18,613,458 | ||||||
4.95%, 12/05/44 (Call 06/05/44)(a) | 19,318 | 25,311,400 | ||||||
5.20%, 12/03/25 (Call 09/03/25) | 7,564 | 8,898,874 | ||||||
Booking Holdings Inc., 3.60%, 06/01/26 (Call 03/01/26)(a) | 12,572 | 13,546,218 | ||||||
eBay Inc. | ||||||||
2.60%, 07/15/22 (Call 04/15/22)(a) | 8,736 | 8,824,912 | ||||||
2.75%, 01/30/23 (Call 12/30/22)(a) | 7,473 | 7,584,266 | ||||||
3.45%, 08/01/24 (Call 05/01/24)(a) | 10,832 | 11,332,602 | ||||||
3.60%, 06/05/27 (Call 03/05/27) | 12,259 | 12,780,016 | ||||||
3.80%, 03/09/22 (Call 02/09/22) | 3,380 | 3,506,963 | ||||||
4.00%, 07/15/42 (Call 01/15/42)(a) | 7,846 | 7,538,977 | ||||||
Expedia Group Inc. | ||||||||
3.25%, 02/15/30 (Call 11/15/29)(b) | 9,030 | 9,053,195 | ||||||
3.80%, 02/15/28 (Call 11/15/27) | 16,345 | 17,121,646 | ||||||
5.00%, 02/15/26 (Call 11/15/25) | 1,635 | 1,840,866 | ||||||
|
| |||||||
383,895,271 | ||||||||
Iron & Steel — 0.1% | ||||||||
ArcelorMittal | ||||||||
3.60%, 07/16/24(a) | 9,890 | 10,124,004 | ||||||
4.25%, 07/16/29(a) | 3,410 | 3,456,380 | ||||||
4.55%, 03/11/26(a) | 7,821 | 8,257,405 | ||||||
|
| |||||||
21,837,789 | ||||||||
Lodging — 0.1% | ||||||||
Las Vegas Sands Corp. | ||||||||
3.20%, 08/08/24 (Call 07/08/24)(a) | 16,342 | 16,707,508 | ||||||
3.50%, 08/18/26 (Call 06/18/26)(a) | 9,258 | 9,427,448 | ||||||
3.90%, 08/08/29 (Call 05/08/29) | 7,000 | 7,211,187 | ||||||
Marriott International Inc./MD, Series R, 3.13%, 06/15/26 (Call 03/15/26)(a) | 164 | 167,392 | ||||||
|
| |||||||
33,513,535 | ||||||||
Machinery — 0.4% | ||||||||
ABB Finance USA Inc. | ||||||||
3.80%, 04/03/28 (Call 01/03/28) | 6,406 | 7,066,942 | ||||||
4.38%, 05/08/42(a) | 7,935 | 9,571,711 | ||||||
Caterpillar Inc. | ||||||||
3.25%, 09/19/49 (Call 03/19/49) | 10,405 | 10,618,223 | ||||||
3.40%, 05/15/24 (Call 02/15/24)(a) | 9,947 | 10,518,342 | ||||||
3.80%, 08/15/42(a) | 19,750 | 22,003,439 | ||||||
5.20%, 05/27/41(a) | 6,703 | 8,726,555 | ||||||
Deere & Co. | ||||||||
2.60%, 06/08/22 (Call 03/08/22)(a) | 7,354 | 7,503,025 | ||||||
3.90%, 06/09/42 (Call 12/09/41)(a) | 11,361 | 12,937,029 | ||||||
John Deere Capital Corp. | ||||||||
2.80%, 03/06/23(a) | 11,287 | 11,614,380 | ||||||
3.45%, 03/13/25 | 4,229 | 4,516,151 | ||||||
Roper Technologies Inc., 4.20%, 09/15/28 (Call 06/15/28) | 4,030 | 4,462,753 | ||||||
Wabtec Corp. | ||||||||
3.45%, 11/15/26 (Call 08/15/26) | 2,430 | 2,461,638 | ||||||
4.40%, 03/15/24 (Call 02/15/24) | 7,336 | 7,816,483 | ||||||
4.95%, 09/15/28 (Call 06/15/28) | 13,263 | 14,616,961 | ||||||
|
| |||||||
134,433,632 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Manufacturing — 1.0% | ||||||||
3M Co. | ||||||||
2.00%, 02/14/25 (Call 01/14/25) | $ | 8,550 | $ | 8,552,960 | ||||
2.38%, 08/26/29 (Call 05/26/29)(a) | 11,040 | 11,012,849 | ||||||
2.88%, 10/15/27 (Call 07/15/27)(a) | 8,070 | 8,412,971 | ||||||
3.25%, 02/14/24 (Call 01/14/24)(a) | 2,452 | 2,578,677 | ||||||
3.25%, 08/26/49 (Call 02/26/49) | 10,325 | 10,318,049 | ||||||
3.38%, 03/01/29 (Call 12/01/28)(a) | 8,611 | 9,264,215 | ||||||
3.63%, 09/14/28 (Call 06/14/28)(a) | 3,425 | 3,766,307 | ||||||
4.00%, 09/14/48 (Call 03/14/48)(a) | 14,206 | 16,012,148 | ||||||
Eaton Corp. | ||||||||
2.75%, 11/02/22 | 18,760 | 19,124,075 | ||||||
4.15%, 11/02/42(a) | 7,996 | 8,940,952 | ||||||
General Electric Co. | ||||||||
2.70%, 10/09/22 | 14,890 | 14,985,756 | ||||||
3.10%, 01/09/23(a) | 12,960 | 13,172,129 | ||||||
3.38%, 03/11/24(a) | 10,846 | 11,182,681 | ||||||
4.13%, 10/09/42(a) | 12,251 | 12,535,043 | ||||||
4.50%, 03/11/44 | 5,000 | 5,402,121 | ||||||
5.88%, 01/14/38 | 33,763 | 40,348,585 | ||||||
6.15%, 08/07/37 | 9,521 | 11,674,339 | ||||||
6.88%, 01/10/39(a) | 24,260 | 32,129,874 | ||||||
Series A, 6.75%, 03/15/32 | 31,930 | 40,671,144 | ||||||
Illinois Tool Works Inc. | ||||||||
2.65%, 11/15/26 (Call 08/15/26) | 4,126 | 4,263,038 | ||||||
3.90%, 09/01/42 (Call 03/01/42)(a) | 12,982 | 15,066,452 | ||||||
Ingersoll-Rand Luxembourg Finance SA, 3.80%, 03/21/29 (Call 12/21/28)(a) | 14,182 | 15,158,581 | ||||||
Parker-Hannifin Corp. | ||||||||
3.25%, 06/14/29 (Call 03/14/29)(a) | 13,870 | 14,550,374 | ||||||
4.00%, 06/14/49 (Call 12/14/48)(a) | 7,656 | 8,279,302 | ||||||
|
| |||||||
337,402,622 | ||||||||
Media — 4.8% | ||||||||
CBS Corp. | ||||||||
4.00%, 01/15/26 (Call 10/15/25) | 8,096 | 8,651,977 | ||||||
7.88%, 07/30/30(a) | 7,072 | 9,885,241 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | ||||||||
3.75%, 02/15/28 (Call 11/15/27)(a) | 18,660 | 19,201,179 | ||||||
4.20%, 03/15/28 (Call 12/15/27)(a) | 10,666 | 11,308,599 | ||||||
4.50%, 02/01/24 (Call 01/01/24) | 12,765 | 13,720,805 | ||||||
4.80%, 03/01/50 (Call 09/01/49)(a) | 16,050 | 16,432,980 | ||||||
4.91%, 07/23/25 (Call 04/23/25) | 52,665 | 58,063,863 | ||||||
5.05%, 03/30/29 (Call 12/30/28)(a) | 19,877 | 22,395,066 | ||||||
5.13%, 07/01/49 (Call 01/01/49)(a) | 12,880 | 13,747,769 | ||||||
5.38%, 04/01/38 (Call 10/01/37) | 7,879 | 8,788,719 | ||||||
5.38%, 05/01/47 (Call 11/01/46)(a) | 26,293 | 28,769,703 | ||||||
5.75%, 04/01/48 (Call 10/01/47) | 29,584 | 34,020,464 | ||||||
6.38%, 10/23/35 (Call 04/23/35)(a) | 17,235 | 21,157,510 | ||||||
6.48%, 10/23/45 (Call 04/23/45)(a) | 42,189 | 51,663,282 | ||||||
Comcast Cable Communications Holdings Inc., 9.46%, 11/15/22(a) | 9,238 | 11,270,866 | ||||||
Comcast Corp. | ||||||||
2.35%, 01/15/27 (Call 10/15/26) | 12,936 | 12,968,273 | ||||||
2.65%, 02/01/30 (Call 11/01/29) | 4,705 | 4,758,872 | ||||||
2.75%, 03/01/23 (Call 02/01/23) | 10,748 | 11,025,850 | ||||||
2.85%, 01/15/23(a) | 6,473 | 6,663,886 | ||||||
3.00%, 02/01/24 (Call 01/01/24) | 14,411 | 14,967,827 | ||||||
3.13%, 07/15/22(a) | 10,273 | 10,641,310 | ||||||
3.15%, 03/01/26 (Call 12/01/25)(a) | 24,277 | 25,553,963 | ||||||
3.15%, 02/15/28 (Call 11/15/27)(a) | 16,707 | 17,566,219 |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
3.20%, 07/15/36 (Call 01/15/36) | $ | 8,400 | $ | 8,534,627 | ||||
3.25%, 11/01/39 (Call 05/01/39) | 10,000 | 10,182,300 | ||||||
3.30%, 02/01/27 (Call 11/01/26)(a) | 13,739 | 14,548,448 | ||||||
3.38%, 02/15/25 (Call 11/15/24) | 14,163 | 15,021,572 | ||||||
3.38%, 08/15/25 (Call 05/15/25)(a) | 15,621 | 16,639,163 | ||||||
3.40%, 07/15/46 (Call 01/15/46)(a) | 13,328 | 13,540,643 | ||||||
3.45%, 02/01/50 (Call 08/01/49) | 5,000 | 5,128,450 | ||||||
3.55%, 05/01/28 (Call 02/01/28)(a) | 14,893 | 16,105,847 | ||||||
3.60%, 03/01/24 | 8,558 | 9,121,833 | ||||||
3.70%, 04/15/24 (Call 03/15/24) | 22,167 | 23,709,570 | ||||||
3.90%, 03/01/38 (Call 09/01/37)(a) | 12,906 | 14,207,593 | ||||||
3.95%, 10/15/25 (Call��08/15/25) | 31,303 | 34,334,527 | ||||||
3.97%, 11/01/47 (Call 05/01/47) | 23,500 | 25,748,106 | ||||||
4.00%, 08/15/47 (Call 02/15/47) | 11,715 | 12,944,854 | ||||||
4.00%, 03/01/48 (Call 09/01/47)(a) | 12,102 | 13,392,585 | ||||||
4.00%, 11/01/49 (Call 05/01/49) | 24,135 | 26,717,418 | ||||||
4.05%, 11/01/52 (Call 05/01/52) | 20,668 | 23,031,609 | ||||||
4.15%, 10/15/28 (Call 07/15/28) | 38,794 | 43,784,445 | ||||||
4.20%, 08/15/34 (Call 02/15/34)(a) | 12,634 | 14,551,533 | ||||||
4.25%, 10/15/30 (Call 07/15/30) | 29,761 | 34,308,817 | ||||||
4.25%, 01/15/33 | 21,739 | 25,058,037 | ||||||
4.40%, 08/15/35 (Call 02/15/35)(a) | 10,823 | 12,548,568 | ||||||
4.60%, 10/15/38 (Call 04/15/38) | 29,538 | 35,165,819 | ||||||
4.60%, 08/15/45 (Call 02/15/45) | 19,576 | 23,431,399 | ||||||
4.65%, 07/15/42 | 12,914 | 15,394,139 | ||||||
4.70%, 10/15/48 (Call 04/15/48)(a) | 46,668 | 57,426,682 | ||||||
4.75%, 03/01/44(a) | 7,542 | 9,132,099 | ||||||
4.95%, 10/15/58 (Call 04/15/58) | 28,880 | 37,072,904 | ||||||
5.65%, 06/15/35 | 8,928 | 11,609,512 | ||||||
6.45%, 03/15/37(a) | 6,741 | 9,524,444 | ||||||
6.50%, 11/15/35 | 9,425 | 13,277,262 | ||||||
6.95%, 08/15/37 | 9,547 | 14,080,372 | ||||||
7.05%, 03/15/33(a) | 8,314 | 11,909,197 | ||||||
Discovery Communications LLC | ||||||||
2.95%, 03/20/23 (Call 02/20/23) | 13,108 | 13,345,860 | ||||||
3.95%, 03/20/28 (Call 12/20/27) | 30,758 | 32,363,094 | ||||||
4.13%, 05/15/29 (Call 02/15/29)(a) | 11,023 | 11,718,346 | ||||||
4.88%, 04/01/43 | 9,557 | 9,983,007 | ||||||
5.00%, 09/20/37 (Call 03/20/37)(a) | 10,105 | 10,971,678 | ||||||
5.20%, 09/20/47 (Call 03/20/47)(a) | 14,261 | 15,706,668 | ||||||
5.30%, 05/15/49 (Call 11/15/48) | 7,820 | 8,703,737 | ||||||
6.35%, 06/01/40 | 5,926 | 7,234,233 | ||||||
Fox Corp. | ||||||||
4.03%, 01/25/24 (Call 12/25/23)(b) | 11,209 | 11,972,443 | ||||||
4.71%, 01/25/29 (Call 10/25/28)(a)(b) | 25,233 | 28,692,359 | ||||||
5.48%, 01/25/39 (Call 07/25/38)(a)(b) | 16,107 | 19,761,161 | ||||||
5.58%, 01/25/49 (Call 07/25/48)(b) | 17,369 | 21,848,012 | ||||||
NBCUniversal Media LLC | ||||||||
2.88%, 01/15/23(a) | 12,251 | 12,612,009 | ||||||
4.45%, 01/15/43 | 6,049 | 6,956,962 | ||||||
5.95%, 04/01/41 | 5,605 | 7,694,087 | ||||||
Time Warner Cable LLC | ||||||||
4.00%, 09/01/21 (Call 06/01/21) | 3,433 | 3,523,262 | ||||||
4.50%, 09/15/42 (Call 03/15/42) | 14,052 | 14,006,774 | ||||||
5.50%, 09/01/41 (Call 03/01/41) | 13,312 | 14,584,402 | ||||||
5.88%, 11/15/40 (Call 05/15/40)(a) | 12,664 | 14,445,536 | ||||||
6.55%, 05/01/37 | 13,982 | 16,953,408 | ||||||
6.75%, 06/15/39 | 20,544 | 25,193,532 | ||||||
7.30%, 07/01/38(a) | 16,780 | 21,483,508 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
Time Warner Entertainment Co. LP | ||||||||
8.38%, 03/15/23(a) | $ | 9,719 | $ | 11,562,703 | ||||
8.38%, 07/15/33 | 12,938 | 18,113,912 | ||||||
TWDC Enterprises 18 Corp. | ||||||||
1.85%, 07/30/26 | 10,751 | 10,595,759 | ||||||
2.35%, 12/01/22 | 10,207 | 10,367,708 | ||||||
2.95%, 06/15/27(a) | 14,536 | 15,341,895 | ||||||
3.00%, 02/13/26 | 12,481 | 13,181,149 | ||||||
3.15%, 09/17/25(a) | 7,505 | 8,002,866 | ||||||
4.13%, 06/01/44 | 10,570 | 12,648,652 | ||||||
Viacom Inc. | ||||||||
4.25%, 09/01/23 (Call 06/01/23)(a) | 11,651 | 12,380,278 | ||||||
4.38%, 03/15/43 | 17,050 | 17,557,681 | ||||||
5.85%, 09/01/43 (Call 03/01/43) | 13,718 | 16,758,135 | ||||||
6.88%, 04/30/36(a) | 13,071 | 17,244,441 | ||||||
Walt Disney Co. (The) | ||||||||
2.00%, 09/01/29 (Call 06/01/29) | 15,750 | 15,357,072 | ||||||
2.75%, 09/01/49 (Call 03/01/49) | 4,640 | 4,398,660 | ||||||
6.15%, 03/01/37(b) | 6,508 | 9,194,502 | ||||||
6.15%, 02/15/41(b) | 6,808 | 10,016,125 | ||||||
6.20%, 12/15/34(b) | 11,579 | 16,383,151 | ||||||
6.40%, 12/15/35(a)(b) | 13,315 | 19,051,338 | ||||||
6.65%, 11/15/37(b) | 17,728 | 26,444,409 | ||||||
|
| |||||||
1,678,763,111 | ||||||||
Metal Fabricate & Hardware — 0.0% | ||||||||
Precision Castparts Corp. | ||||||||
2.50%, 01/15/23 (Call 10/15/22)(a) | 5,840 | 5,931,045 | ||||||
3.25%, 06/15/25 (Call 03/15/25)(a) | 3,087 | 3,264,285 | ||||||
|
| |||||||
9,195,330 | ||||||||
Mining — 0.6% | ||||||||
Barrick Gold Corp., 5.25%, 04/01/42(a) | 7,795 | 9,415,807 | ||||||
Barrick North America Finance LLC | ||||||||
5.70%, 05/30/41(a) | 11,796 | 14,889,016 | ||||||
5.75%, 05/01/43(a) | 7,606 | 9,894,293 | ||||||
Barrick PD Australia Finance Pty Ltd., 5.95%, 10/15/39 | 12,247 | 15,734,268 | ||||||
BHP Billiton Finance USA Ltd. | ||||||||
4.13%, 02/24/42(a) | 10,843 | 12,543,047 | ||||||
5.00%, 09/30/43(a) | 27,864 | 36,065,961 | ||||||
Newmont Goldcorp Corp. | ||||||||
3.50%, 03/15/22 (Call 12/15/21) | 6,862 | 7,064,731 | ||||||
3.70%, 03/15/23 (Call 12/15/22)(b) | 69 | 71,941 | ||||||
3.70%, 03/15/23 (Call 12/15/22) | 750 | 780,950 | ||||||
4.88%, 03/15/42 (Call 09/15/41) | 12,537 | 14,760,587 | ||||||
6.25%, 10/01/39(a) | 10,846 | 14,427,163 | ||||||
Rio Tinto Alcan Inc., 6.13%, 12/15/33 | 7,014 | 9,521,328 | ||||||
Rio Tinto Finance USA Ltd. | ||||||||
3.75%, 06/15/25 (Call 03/15/25)(a) | 12,341 | 13,308,089 | ||||||
5.20%, 11/02/40 | 13,101 | 16,995,998 | ||||||
7.13%, 07/15/28(a) | 11,183 | 15,136,612 | ||||||
Rio Tinto Finance USA PLC, 4.13%, 08/21/42 (Call 02/21/42)(a) | 11,096 | 12,804,997 | ||||||
|
| |||||||
203,414,788 | ||||||||
Oil & Gas — 5.7% | ||||||||
Apache Corp. | ||||||||
3.25%, 04/15/22 (Call 01/15/22) | 5,162 | 5,234,062 | ||||||
4.25%, 01/15/44 (Call 07/15/43) | 10,859 | 9,259,073 | ||||||
4.38%, 10/15/28 (Call 07/15/28)(a) | 1,367 | 1,356,646 | ||||||
4.75%, 04/15/43 (Call 10/15/42) | 15,732 | 14,311,473 | ||||||
5.10%, 09/01/40 (Call 03/01/40)(a) | 19,142 | 18,271,052 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
BP Capital Markets America Inc. | ||||||||
2.75%, 05/10/23 | $ | 5,713 | $ | 5,851,160 | ||||
3.02%, 01/16/27 (Call 10/16/26) | 10,178 | 10,566,866 | ||||||
3.12%, 05/04/26 (Call 02/04/26)(a) | 13,583 | 14,245,572 | ||||||
3.22%, 11/28/23 (Call 09/28/23) | 10,744 | 11,190,479 | ||||||
3.22%, 04/14/24 (Call 02/14/24)(a) | 9,561 | 9,977,526 | ||||||
3.25%, 05/06/22(a) | 6,011 | 6,203,170 | ||||||
3.41%, 02/11/26 (Call 12/11/25)(a) | 2,035 | 2,161,370 | ||||||
3.79%, 02/06/24 (Call 01/06/24)(a) | 11,052 | 11,753,497 | ||||||
3.80%, 09/21/25 (Call 07/21/25)(a) | 16,025 | 17,363,438 | ||||||
3.94%, 09/21/28 (Call 06/21/28)(a) | 2,049 | 2,273,033 | ||||||
4.23%, 11/06/28 (Call 08/06/28)(a) | 27,104 | 30,682,994 | ||||||
BP Capital Markets PLC | ||||||||
2.50%, 11/06/22(a) | 9,168 | 9,315,997 | ||||||
3.06%, 03/17/22(a) | 5,472 | 5,615,869 | ||||||
3.28%, 09/19/27 (Call 06/19/27)(a) | 20,418 | 21,516,060 | ||||||
3.51%, 03/17/25(a) | 13,608 | 14,498,480 | ||||||
3.54%, 11/04/24 | 15,108 | 16,007,505 | ||||||
3.72%, 11/28/28 (Call 08/28/28) | 9,202 | 10,028,444 | ||||||
3.81%, 02/10/24 | 14,187 | 15,152,213 | ||||||
3.99%, 09/26/23 | 8,167 | 8,746,638 | ||||||
Canadian Natural Resources Ltd. | ||||||||
2.95%, 01/15/23 (Call 12/15/22) | 4,153 | 4,236,543 | ||||||
3.85%, 06/01/27 (Call 03/01/27)(a) | 14,230 | 15,058,310 | ||||||
4.95%, 06/01/47 (Call 12/01/46)(a) | 9,342 | 10,933,232 | ||||||
6.25%, 03/15/38(a) | 12,158 | 15,389,463 | ||||||
Cenovus Energy Inc. | ||||||||
4.25%, 04/15/27 (Call 01/15/27)(a) | 8,491 | 8,903,057 | ||||||
5.40%, 06/15/47 (Call 12/15/46)(a) | 7,536 | 8,430,713 | ||||||
6.75%, 11/15/39 | 17,446 | 21,241,660 | ||||||
Chevron Corp. | ||||||||
2.36%, 12/05/22 (Call 09/05/22) | 15,560 | 15,778,311 | ||||||
2.57%, 05/16/23 (Call 03/16/23) | 7,510 | 7,665,360 | ||||||
2.90%, 03/03/24 (Call 01/03/24)(a) | 7,795 | 8,120,252 | ||||||
2.95%, 05/16/26 (Call 02/16/26)(a) | 28,262 | 29,723,018 | ||||||
3.19%, 06/24/23 (Call 03/24/23) | 23,906 | 24,954,916 | ||||||
3.33%, 11/17/25 (Call 08/17/25)(a) | 14,423 | 15,494,789 | ||||||
Cimarex Energy Co. | ||||||||
3.90%, 05/15/27 (Call 02/15/27)(a) | 14,420 | 14,533,954 | ||||||
4.38%, 06/01/24 (Call 03/01/24) | 2,278 | 2,384,327 | ||||||
Concho Resources Inc. | ||||||||
3.75%, 10/01/27 (Call 07/01/27)(a) | 11,501 | 11,933,109 | ||||||
4.30%, 08/15/28 (Call 05/15/28)(a) | 14,484 | 15,613,583 | ||||||
4.88%, 10/01/47 (Call 04/01/47) | 7,666 | 8,644,233 | ||||||
ConocoPhillips, 6.50%, 02/01/39(a) | 25,569 | 37,320,676 | ||||||
ConocoPhillips Co. | ||||||||
4.30%, 11/15/44 (Call 05/15/44) | 10,765 | 12,578,106 | ||||||
4.95%, 03/15/26 (Call 12/15/25) | 17,797 | 20,468,689 | ||||||
ConocoPhillips Holding Co., 6.95%, 04/15/29 | 12,819 | 17,419,969 | ||||||
Continental Resources Inc./OK | ||||||||
3.80%, 06/01/24 (Call 03/01/24) | 250 | 254,511 | ||||||
4.38%, 01/15/28 (Call 10/15/27)(a) | 17,735 | 18,304,434 | ||||||
4.50%, 04/15/23 (Call 01/15/23) | 11,976 | 12,467,499 | ||||||
Devon Energy Corp. | ||||||||
4.75%, 05/15/42 (Call 11/15/41) | 3,575 | 3,918,285 | ||||||
5.00%, 06/15/45 (Call 12/15/44)(a) | 10,288 | 11,733,311 | ||||||
5.60%, 07/15/41 (Call 01/15/41)(a) | 13,689 | 16,318,389 | ||||||
Encana Corp., 6.50%, 08/15/34(a) | 5,862 | 7,062,434 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
EOG Resources Inc. | ||||||||
2.63%, 03/15/23 (Call 12/15/22)(a) | $ | 9,249 | $ | 9,443,087 | ||||
4.15%, 01/15/26 (Call 10/15/25)(a) | 12,642 | 13,975,132 | ||||||
EQT Corp. | ||||||||
3.00%, 10/01/22 (Call 09/01/22)(a) | 2,627 | 2,508,674 | ||||||
3.90%, 10/01/27 (Call 07/01/27)(a) | 16,135 | 14,231,070 | ||||||
Equinor ASA | ||||||||
2.45%, 01/17/23(a) | 9,097 | 9,253,069 | ||||||
2.65%, 01/15/24 | 10,589 | 10,897,991 | ||||||
3.70%, 03/01/24(a) | 11,435 | 12,243,438 | ||||||
3.95%, 05/15/43(a) | 9,483 | 10,864,728 | ||||||
4.80%, 11/08/43(a) | 7,232 | 9,294,430 | ||||||
5.10%, 08/17/40 | 8,926 | 11,622,942 | ||||||
Exxon Mobil Corp. | ||||||||
2.02%, 08/16/24 (Call 07/16/24)(a) | 10,700 | 10,775,928 | ||||||
2.28%, 08/16/26 (Call 06/16/26)(a) | 15,575 | 15,733,924 | ||||||
2.40%, 03/06/22 (Call 01/06/22)(a) | 6,450 | 6,542,933 | ||||||
2.44%, 08/16/29 (Call 05/16/29)(a) | 12,900 | 12,992,154 | ||||||
2.71%, 03/06/25 (Call 12/06/24)(a) | 22,259 | 23,099,190 | ||||||
2.73%, 03/01/23 (Call 01/01/23) | 13,898 | 14,288,569 | ||||||
3.00%, 08/16/39 (Call 02/16/39)(a) | 5,275 | 5,354,470 | ||||||
3.04%, 03/01/26 (Call 12/01/25)(a) | 27,575 | 29,134,173 | ||||||
3.10%, 08/16/49 (Call 02/16/49)(a) | 18,315 | 18,551,994 | ||||||
3.18%, 03/15/24 (Call 12/15/23)(a) | 9,402 | 9,904,527 | ||||||
3.57%, 03/06/45 (Call 09/06/44) | 10,216 | 11,107,850 | ||||||
4.11%, 03/01/46 (Call 09/01/45)(a) | 30,374 | 36,107,257 | ||||||
Hess Corp. | ||||||||
4.30%, 04/01/27 (Call 01/01/27)(a) | 12,619 | 13,278,796 | ||||||
5.60%, 02/15/41 | 11,129 | 12,486,445 | ||||||
6.00%, 01/15/40 | 10,291 | 11,722,063 | ||||||
Husky Energy Inc. | ||||||||
4.00%, 04/15/24 (Call 01/15/24)(a) | 750 | 787,433 | ||||||
4.40%, 04/15/29 (Call 01/15/29)(a) | 6,364 | 6,713,790 | ||||||
Marathon Oil Corp. | ||||||||
2.80%, 11/01/22 (Call 08/01/22)(a) | 3,184 | 3,218,180 | ||||||
3.85%, 06/01/25 (Call 03/01/25)(a) | 7,185 | 7,548,940 | ||||||
4.40%, 07/15/27 (Call 04/15/27)(a) | 16,874 | 18,132,434 | ||||||
6.60%, 10/01/37 | 6,628 | 8,115,690 | ||||||
Marathon Petroleum Corp. | ||||||||
3.63%, 09/15/24 (Call 06/15/24)(a) | 9,237 | 9,730,053 | ||||||
4.75%, 09/15/44 (Call 03/15/44) | 9,883 | 10,844,662 | ||||||
5.13%, 12/15/26 (Call 09/15/26)(a) | 237 | 270,919 | ||||||
6.50%, 03/01/41 (Call 09/01/40) | 13,807 | 17,782,411 | ||||||
Newfield Exploration Co., 5.63%, 07/01/24(a) | 8,190 | 8,965,342 | ||||||
Noble Energy Inc. | ||||||||
5.05%, 11/15/44 (Call 05/15/44) | 10,521 | 11,126,364 | ||||||
5.25%, 11/15/43 (Call 05/15/43) | 8,980 | 9,723,904 | ||||||
6.00%, 03/01/41 (Call 09/01/40) | 10,549 | 12,216,843 | ||||||
Occidental Petroleum Corp. | ||||||||
2.70%, 02/15/23 (Call 11/15/22)(a) | 8,672 | 8,735,348 | ||||||
2.90%, 08/15/24 (Call 07/15/24)(a) | 26,475 | 26,735,993 | ||||||
3.00%, 02/15/27 (Call 11/15/26)(a) | 7,751 | 7,702,162 | ||||||
3.20%, 08/15/26 (Call 06/15/26)(a) | 11,300 | 11,451,160 | ||||||
3.40%, 04/15/26 (Call 01/15/26)(a) | 13,240 | 13,508,233 | ||||||
3.50%, 06/15/25 (Call 03/15/25)(a) | 9,905 | 10,255,465 | ||||||
3.50%, 08/15/29 (Call 05/15/29)(a) | 18,795 | 19,046,434 | ||||||
4.10%, 02/15/47 (Call 08/15/46) | 13,343 | 12,743,201 | ||||||
4.20%, 03/15/48 (Call 09/15/47) | 7,162 | 6,952,393 | ||||||
4.30%, 08/15/39 (Call 02/15/39)(a) | 10,675 | 10,832,308 | ||||||
4.40%, 04/15/46 (Call 10/15/45) | 10,902 | 10,853,626 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
4.40%, 08/15/49 (Call 02/15/49)(a) | $ | 5,850 | $ | 5,930,007 | ||||
4.63%, 06/15/45 (Call 12/15/44)(a) | 13,799 | 14,066,238 | ||||||
5.55%, 03/15/26 (Call 12/15/25)(a) | 15,519 | 17,620,561 | ||||||
6.20%, 03/15/40 | 6,994 | 8,395,782 | ||||||
6.45%, 09/15/36 | 23,325 | 28,560,933 | ||||||
6.60%, 03/15/46 (Call 09/15/45) | 15,199 | 19,462,753 | ||||||
7.50%, 05/01/31 | 8,566 | 11,232,663 | ||||||
Phillips 66 | ||||||||
3.90%, 03/15/28 (Call 12/15/27)(a) | 7,551 | 8,177,350 | ||||||
4.65%, 11/15/34 (Call 05/15/34) | 15,679 | 18,255,082 | ||||||
4.88%, 11/15/44 (Call 05/15/44)(a) | 17,317 | 20,732,356 | ||||||
5.88%, 05/01/42(a) | 15,664 | 20,856,704 | ||||||
Shell International Finance BV | ||||||||
2.25%, 01/06/23(a) | 10,423 | 10,528,558 | ||||||
2.38%, 08/21/22 | 10,450 | 10,610,035 | ||||||
2.50%, 09/12/26(a) | 15,952 | 16,310,461 | ||||||
2.88%, 05/10/26(a) | 22,766 | 23,779,098 | ||||||
3.25%, 05/11/25 | 31,367 | 33,225,140 | ||||||
3.40%, 08/12/23 | 8,068 | 8,498,976 | ||||||
3.50%, 11/13/23 (Call 10/13/23)(a) | 10,461 | 11,068,880 | ||||||
3.75%, 09/12/46(a) | 13,846 | 15,415,783 | ||||||
3.88%, 11/13/28 (Call 08/13/28)(a) | 21,026 | 23,649,328 | ||||||
4.00%, 05/10/46(a) | 29,970 | 34,375,287 | ||||||
4.13%, 05/11/35(a) | 16,829 | 19,359,158 | ||||||
4.38%, 05/11/45(a) | 34,174 | 41,204,672 | ||||||
4.55%, 08/12/43(a) | 16,939 | 20,663,325 | ||||||
5.50%, 03/25/40(a) | 6,256 | 8,457,003 | ||||||
6.38%, 12/15/38(a) | 22,853 | 33,157,514 | ||||||
Suncor Energy Inc. | ||||||||
3.60%, 12/01/24 (Call 09/01/24)(a) | 3,874 | 4,090,848 | ||||||
4.00%, 11/15/47 (Call 05/15/47) | 11,473 | 12,306,616 | ||||||
6.50%, 06/15/38 | 11,025 | 15,149,690 | ||||||
6.80%, 05/15/38 | 12,835 | 18,034,954 | ||||||
6.85%, 06/01/39 | 7,782 | 10,953,792 | ||||||
Total Capital Canada Ltd., | 2,217 | 2,281,214 | ||||||
Total Capital International SA | ||||||||
2.43%, 01/10/25 (Call 10/10/24)(a) | 12,100 | 12,294,226 | ||||||
2.70%, 01/25/23(a) | 9,227 | 9,460,531 | ||||||
2.83%, 01/10/30 (Call 10/10/29)(a) | 18,181 | 18,818,208 | ||||||
2.88%, 02/17/22(a) | 3,480 | 3,562,515 | ||||||
3.46%, 02/19/29 (Call 11/19/28)(a) | 17,207 | 18,693,184 | ||||||
3.46%, 07/12/49 (Call 01/12/49) | 10,085 | 10,678,150 | ||||||
3.70%, 01/15/24 | 9,599 | 10,268,807 | ||||||
3.75%, 04/10/24 | 10,350 | 11,120,116 | ||||||
Total Capital SA, 3.88%, 10/11/28(a) | 10,794 | 12,119,128 | ||||||
Valero Energy Corp. | ||||||||
3.40%, 09/15/26 (Call 06/15/26) | 16,317 | 16,883,066 | ||||||
4.00%, 04/01/29 (Call 01/01/29) | 12,720 | 13,599,466 | ||||||
4.35%, 06/01/28 (Call 03/01/28) | 7,223 | 7,858,236 | ||||||
6.63%, 06/15/37(a) | 16,494 | 21,440,462 | ||||||
7.50%, 04/15/32 | 7,429 | 10,097,985 | ||||||
|
| |||||||
1,991,180,713 | ||||||||
Oil & Gas Services — 0.6% | ||||||||
Baker Hughes a GE Co. LLC, 5.13%, 09/15/40(a) | 4,388 | 4,982,674 | ||||||
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor Inc. | ||||||||
2.77%, 12/15/22 (Call 11/15/22) | 11,668 | 11,861,433 | ||||||
3.34%, 12/15/27 (Call 09/15/27)(a) | 21,826 | 22,488,934 | ||||||
4.08%, 12/15/47 (Call 06/15/47) | 21,365 | 21,346,231 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas Services (continued) | ||||||||
Halliburton Co. | ||||||||
3.50%, 08/01/23 (Call 05/01/23) | $ | 10,835 | $ | 11,236,065 | ||||
3.80%, 11/15/25 (Call 08/15/25)(a) | 21,374 | 22,508,280 | ||||||
4.75%, 08/01/43 (Call 02/01/43) | 11,157 | 11,924,874 | ||||||
4.85%, 11/15/35 (Call 05/15/35) | 9,908 | 10,961,483 | ||||||
5.00%, 11/15/45 (Call 05/15/45)(a) | 20,977 | 22,996,808 | ||||||
6.70%, 09/15/38(a) | 9,383 | 12,329,140 | ||||||
7.45%, 09/15/39 | 12,227 | 17,307,567 | ||||||
National Oilwell Varco Inc. | ||||||||
2.60%, 12/01/22 (Call 09/01/22) | 9,820 | 9,903,293 | ||||||
3.95%, 12/01/42 (Call 06/01/42) | 9,129 | 8,323,423 | ||||||
Schlumberger Investment SA, 3.65%, 12/01/23 (Call 09/01/23) | 12,640 | 13,369,629 | ||||||
|
| |||||||
201,539,834 | ||||||||
Packaging & Containers — 0.1% | ||||||||
WRKCo Inc. | ||||||||
4.65%, 03/15/26 (Call 01/15/26) | 9,181 | 10,143,483 | ||||||
4.90%, 03/15/29 (Call��12/15/28)(a) | 10,590 | 12,101,891 | ||||||
|
| |||||||
22,245,374 | ||||||||
Pharmaceuticals — 8.1% | ||||||||
AbbVie Inc. | ||||||||
2.85%, 05/14/23 (Call 03/14/23) | 12,207 | 12,418,226 | ||||||
2.90%, 11/06/22 | 28,601 | 29,162,518 | ||||||
3.20%, 11/06/22 (Call 09/06/22) | 8,409 | 8,632,920 | ||||||
3.20%, 05/14/26 (Call 02/14/26)(a) | 20,268 | 20,763,701 | ||||||
3.60%, 05/14/25 (Call 02/14/25)(a) | 37,043 | 38,815,530 | ||||||
3.75%, 11/14/23 (Call 10/14/23) | 13,860 | 14,597,746 | ||||||
4.25%, 11/14/28 (Call 08/14/28) | 17,799 | 19,347,579 | ||||||
4.30%, 05/14/36 (Call 11/14/35) | 14,031 | 14,789,411 | ||||||
4.40%, 11/06/42 | 32,588 | 33,624,605 | ||||||
4.45%, 05/14/46 (Call 11/14/45) | 20,291 | 21,011,627 | ||||||
4.50%, 05/14/35 (Call 11/14/34)(a) | 24,889 | 26,700,362 | ||||||
4.70%, 05/14/45 (Call 11/14/44) | 31,283 | 33,520,635 | ||||||
4.88%, 11/14/48 (Call 05/14/48)(a) | 17,975 | 19,739,949 | ||||||
Allergan Finance LLC, 3.25%, 10/01/22 (Call 07/01/22) | 7,144 | 7,301,878 | ||||||
Allergan Funding SCS | ||||||||
3.45%, 03/15/22 (Call 01/15/22) | 2,953 | 3,023,999 | ||||||
3.80%, 03/15/25 (Call 12/15/24)(a) | 43,127 | 45,367,586 | ||||||
3.85%, 06/15/24 (Call 03/15/24) | 12,755 | 13,459,390 | ||||||
4.55%, 03/15/35 (Call 09/15/34) | 19,731 | 21,131,650 | ||||||
4.75%, 03/15/45 (Call 09/15/44) | 10,785 | 11,500,343 | ||||||
4.85%, 06/15/44 (Call 12/15/43) | 12,101 | 13,071,349 | ||||||
AmerisourceBergen Corp., 3.45%, 12/15/27 (Call 09/15/27) | 2,448 | 2,543,566 | ||||||
AstraZeneca PLC | ||||||||
3.13%, 06/12/27 (Call 03/12/27) | 12,950 | 13,550,797 | ||||||
3.38%, 11/16/25 | 24,565 | 25,976,259 | ||||||
3.50%, 08/17/23 (Call 07/17/23)(a) | 8,402 | 8,806,098 | ||||||
4.00%, 01/17/29 (Call 10/17/28)(a) | 16,609 | 18,592,125 | ||||||
4.00%, 09/18/42 | 11,845 | 13,153,472 | ||||||
4.38%, 11/16/45(a) | 9,353 | 11,042,643 | ||||||
4.38%, 08/17/48 (Call 02/17/48)(a) | 7,187 | 8,521,577 | ||||||
6.45%, 09/15/37(a) | 30,788 | 43,426,400 | ||||||
Bristol-Myers Squibb Co. | ||||||||
2.90%, 07/26/24 (Call 06/26/24)(a)(b) | 37,118 | 38,530,351 | ||||||
3.20%, 06/15/26 (Call 04/15/26)(b) | 25,051 | 26,466,234 | ||||||
3.25%, 02/27/27 | 10,087 | 10,810,139 | ||||||
3.40%, 07/26/29 (Call 04/26/29)(a)(b) | 49,855 | 53,598,188 | ||||||
4.13%, 06/15/39 (Call 12/15/38)(a)(b) | 20,907 | 23,861,247 |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
4.25%, 10/26/49 (Call 04/26/49)(a)(b) | $ | 42,890 | $ | 50,249,161 | ||||
Cardinal Health Inc. | ||||||||
2.62%, 06/15/22 (Call 05/15/22) | 9,890 | 9,998,847 | ||||||
3.08%, 06/15/24 (Call 04/15/24)(a) | 7,930 | 8,060,797 | ||||||
3.41%, 06/15/27 (Call 03/15/27)(a) | 13,558 | 13,800,020 | ||||||
Cigna Corp. | ||||||||
3.00%, 07/15/23 (Call 05/16/23)(b) | 8,307 | 8,482,729 | ||||||
3.25%, 04/15/25 (Call 01/15/25)(b) | 17,357 | 17,892,840 | ||||||
3.40%, 03/01/27 (Call 12/01/26)(a)(b) | 17,234 | 17,916,460 | ||||||
3.50%, 06/15/24 (Call 03/17/24)(b) | 11,836 | 12,337,484 | ||||||
3.75%, 07/15/23 (Call 06/15/23) | 31,823 | 33,332,161 | ||||||
3.88%, 10/15/47 (Call 04/15/47)(b) | 8,080 | 7,922,817 | ||||||
3.90%, 02/15/22(b) | 1,167 | 1,210,080 | ||||||
4.13%, 11/15/25 (Call 09/15/25) | 28,468 | 30,857,185 | ||||||
4.38%, 10/15/28 (Call 07/15/28)(a) | 44,204 | 48,764,036 | ||||||
4.50%, 02/25/26 (Call 11/27/25)(b) | 13,834 | 15,343,837 | ||||||
4.80%, 08/15/38 (Call 02/15/38) | 31,559 | 35,818,086 | ||||||
4.80%, 07/15/46 (Call 01/16/46)(b) | 13,990 | 15,607,916 | ||||||
4.90%, 12/15/48 (Call 06/15/48)(a) | 29,399 | 34,139,944 | ||||||
CVS Health Corp. | ||||||||
2.63%, 08/15/24 (Call 07/15/24)(a) | 9,020 | 9,117,047 | ||||||
2.75%, 12/01/22 (Call 09/01/22) | 7,926 | 8,046,806 | ||||||
2.88%, 06/01/26 (Call 03/01/26)(a) | 18,254 | 18,362,089 | ||||||
3.00%, 08/15/26 (Call 06/15/26) | 6,263 | 6,355,600 | ||||||
3.25%, 08/15/29 (Call 05/15/29) | 14,185 | 14,301,592 | ||||||
3.50%, 07/20/22 (Call 05/20/22)(a) | 8,715 | 9,015,306 | ||||||
3.70%, 03/09/23 (Call 02/09/23)(a) | 60,314 | 62,887,417 | ||||||
3.88%, 07/20/25 (Call 04/20/25) | 31,167 | 33,149,558 | ||||||
4.00%, 12/05/23 (Call 09/05/23)(a) | 12,776 | 13,534,440 | ||||||
4.10%, 03/25/25 (Call 01/25/25) | 59,804 | 64,236,768 | ||||||
4.30%, 03/25/28 (Call 12/25/27)(a) | 109,160 | 118,337,441 | ||||||
4.78%, 03/25/38 (Call 09/25/37)(a) | 55,902 | 62,003,273 | ||||||
5.05%, 03/25/48 (Call 09/25/47)(a) | 87,454 | 100,536,209 | ||||||
5.13%, 07/20/45 (Call 01/20/45)(a) | 41,292 | 47,466,368 | ||||||
5.30%, 12/05/43 (Call 06/05/43) | 11,281 | 13,172,658 | ||||||
Eli Lilly & Co. | ||||||||
2.75%, 06/01/25 (Call 03/01/25) | 13,820 | 14,363,072 | ||||||
3.10%, 05/15/27 (Call 02/15/27) | 10,791 | 11,450,443 | ||||||
3.38%, 03/15/29 (Call 12/15/28)(a) | 12,843 | 13,939,331 | ||||||
3.70%, 03/01/45 (Call 09/01/44) | 3,289 | 3,713,300 | ||||||
3.88%, 03/15/39 (Call 09/15/38)(a) | 11,612 | 13,387,486 | ||||||
3.95%, 05/15/47 (Call 11/15/46) | 6,311 | 7,441,336 | ||||||
3.95%, 03/15/49 (Call 09/15/48)(a) | 17,351 | 20,283,041 | ||||||
4.15%, 03/15/59 (Call 09/15/58)(a) | 13,828 | 16,445,292 | ||||||
GlaxoSmithKline Capital Inc. | ||||||||
2.80%, 03/18/23(a) | 10,816 | 11,146,298 | ||||||
3.38%, 05/15/23 | 14,205 | 14,888,481 | ||||||
3.63%, 05/15/25 | 11,047 | 11,902,838 | ||||||
3.88%, 05/15/28 | 20,189 | 22,532,822 | ||||||
6.38%, 05/15/38 | 30,134 | 43,903,481 | ||||||
GlaxoSmithKline Capital PLC | ||||||||
2.85%, 05/08/22 | 3,949 | 4,042,348 | ||||||
3.00%, 06/01/24 (Call 05/01/24)(a) | 9,734 | 10,122,372 | ||||||
3.38%, 06/01/29 (Call 03/01/29)(a) | 15,385 | 16,623,740 | ||||||
Johnson & Johnson | ||||||||
2.45%, 03/01/26 (Call 12/01/25)(a) | 21,336 | 21,835,862 | ||||||
2.63%, 01/15/25 (Call 11/15/24)(a) | 10,951 | 11,306,979 | ||||||
2.90%, 01/15/28 (Call 10/15/27)(a) | 21,266 | 22,373,344 | ||||||
2.95%, 03/03/27 (Call 12/03/26)(a) | 11,908 | 12,559,322 | ||||||
3.38%, 12/05/23 | 7,827 | 8,308,696 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
3.40%, 01/15/38 (Call 07/15/37)(a) | $ | 10,681 | $ | 11,557,475 | ||||
3.50%, 01/15/48 (Call 07/15/47)(a) | 12,002 | 13,230,933 | ||||||
3.55%, 03/01/36 (Call 09/01/35) | 10,600 | 11,636,244 | ||||||
3.63%, 03/03/37 (Call 09/03/36)(a) | 16,662 | 18,483,502 | ||||||
3.70%, 03/01/46 (Call 09/01/45)(a) | 13,117 | 14,847,450 | ||||||
3.75%, 03/03/47 (Call 09/03/46)(a) | 14,015 | 15,957,705 | ||||||
4.38%, 12/05/33 (Call 06/05/33) | 12,735 | 15,333,401 | ||||||
5.95%, 08/15/37 | 10,827 | 15,343,874 | ||||||
McKesson Corp., 3.80%, 03/15/24 (Call 12/15/23)(a) | 7,870 | 8,267,619 | ||||||
Mead Johnson Nutrition Co., 4.13%, 11/15/25 (Call 08/15/25) | 7,831 | 8,584,821 | ||||||
Merck & Co. Inc. | ||||||||
2.35%, 02/10/22 | 2,810 | 2,855,096 | ||||||
2.75%, 02/10/25 (Call 11/10/24) | 35,609 | 36,938,875 | ||||||
2.80%, 05/18/23(a) | 19,223 | 19,889,742 | ||||||
2.90%, 03/07/24 (Call 02/07/24)(a) | 8,171 | 8,516,721 | ||||||
3.40%, 03/07/29 (Call 12/07/28)(a) | 22,568 | 24,567,026 | ||||||
3.70%, 02/10/45 (Call 08/10/44) | 24,909 | 27,960,079 | ||||||
3.90%, 03/07/39 (Call 09/07/38) | 11,352 | 13,126,406 | ||||||
4.00%, 03/07/49 (Call 09/07/48)(a) | 17,264 | 20,597,433 | ||||||
4.15%, 05/18/43(a) | 9,438 | 11,339,248 | ||||||
Mylan Inc. | ||||||||
4.55%, 04/15/28 (Call 01/15/28)(a) | 15,612 | 16,719,918 | ||||||
5.20%, 04/15/48 (Call 10/15/47)(a) | 4,873 | 5,180,975 | ||||||
Mylan NV | ||||||||
3.95%, 06/15/26 (Call 03/15/26)(a) | 25,803 | 26,838,714 | ||||||
3.95%, 06/15/26 (Call 03/15/26)(b) | 1,922 | 1,996,420 | ||||||
5.25%, 06/15/46 (Call 12/15/45)(a) | 8,543 | 9,155,887 | ||||||
Novartis Capital Corp. | ||||||||
2.40%, 09/21/22 | 8,704 | 8,863,863 | ||||||
3.00%, 11/20/25 (Call 08/20/25)(a) | 16,135 | 17,074,717 | ||||||
3.10%, 05/17/27 (Call 02/17/27)(a) | 11,502 | 12,236,682 | ||||||
3.40%, 05/06/24(a) | 13,210 | 14,059,119 | ||||||
4.00%, 11/20/45 (Call 05/20/45) | 15,066 | 17,863,001 | ||||||
4.40%, 05/06/44 | 23,030 | 28,653,525 | ||||||
Pfizer Inc. | ||||||||
2.75%, 06/03/26(a) | 14,069 | 14,597,464 | ||||||
2.95%, 03/15/24 (Call 02/15/24)(a) | 5,674 | 5,916,806 | ||||||
3.00%, 06/15/23(a) | 9,018 | 9,363,761 | ||||||
3.00%, 12/15/26(a) | 15,612 | 16,570,096 | ||||||
3.20%, 09/15/23 (Call 08/15/23) | 8,176 | 8,563,860 | ||||||
3.40%, 05/15/24(a) | 11,115 | 11,830,477 | ||||||
3.45%, 03/15/29 (Call 12/15/28)(a) | 24,756 | 26,986,602 | ||||||
3.60%, 09/15/28 (Call 06/15/28)(a) | 13,460 | 14,833,359 | ||||||
3.90%, 03/15/39 (Call 09/15/38)(a) | 11,528 | 13,136,750 | ||||||
4.00%, 12/15/36(a) | 9,609 | 10,987,621 | ||||||
4.00%, 03/15/49 (Call 09/15/48)(a) | 10,450 | 12,188,456 | ||||||
4.13%, 12/15/46(a) | 14,628 | 17,297,446 | ||||||
4.20%, 09/15/48 (Call 03/15/48)(a) | 12,794 | 15,314,319 | ||||||
4.30%, 06/15/43 | 10,547 | 12,599,530 | ||||||
4.40%, 05/15/44 | 13,667 | 16,601,981 | ||||||
7.20%, 03/15/39 | 21,970 | 34,520,554 | ||||||
Sanofi | ||||||||
3.38%, 06/19/23 (Call 05/19/23)(a) | 6,592 | 6,933,344 | ||||||
3.63%, 06/19/28 (Call 03/19/28) | 2,372 | 2,638,071 | ||||||
Shire Acquisitions Investments Ireland DAC | ||||||||
2.88%, 09/23/23 (Call 07/23/23) | 28,011 | 28,595,682 | ||||||
3.20%, 09/23/26 (Call 06/23/26)(a) | 21,683 | 22,368,905 |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Takeda Pharmaceutical Co. Ltd. | ||||||||
4.40%, 11/26/23 (Call 10/26/23)(a)(b) | $ | 15,865 | $ | 17,053,542 | ||||
5.00%, 11/26/28 (Call 08/26/28)(b) | 23,075 | 27,091,418 | ||||||
Wyeth LLC | ||||||||
5.95%, 04/01/37 | 21,983 | 30,219,909 | ||||||
6.50%, 02/01/34 | 14,557 | 20,627,579 | ||||||
Zoetis Inc. | ||||||||
3.00%, 09/12/27 (Call 06/12/27) | 12,505 | 12,879,003 | ||||||
3.25%, 02/01/23 (Call 11/01/22) | 12,084 | 12,475,680 | ||||||
4.50%, 11/13/25 (Call 08/13/25)(a) | 6,740 | 7,508,824 | ||||||
4.70%, 02/01/43 (Call 08/01/42)(a) | 11,637 | 14,098,182 | ||||||
|
| |||||||
2,863,162,648 | ||||||||
Pipelines — 3.7% | ||||||||
Cheniere Corpus Christi Holdings LLC | ||||||||
5.13%, 06/30/27 (Call 01/01/27) | 15,350 | 16,553,755 | ||||||
5.88%, 03/31/25 (Call 10/02/24) | 15,000 | 16,632,600 | ||||||
7.00%, 06/30/24 (Call 01/01/24) | 15,000 | 17,250,000 | ||||||
Enable Midstream Partners LP, 4.95%, 05/15/28 (Call 02/15/28)(a) | 12,600 | 12,820,720 | ||||||
Enbridge Inc. | ||||||||
4.00%, 10/01/23 (Call 07/01/23) | 6,517 | 6,904,197 | ||||||
4.25%, 12/01/26 (Call 09/01/26)(a) | 11,385 | 12,431,258 | ||||||
5.50%, 12/01/46 (Call 06/01/46)(a) | 8,793 | 11,096,329 | ||||||
Energy Transfer Operating LP | ||||||||
3.60%, 02/01/23 (Call 11/01/22) | 7,511 | 7,711,384 | ||||||
4.05%, 03/15/25 (Call 12/15/24) | 14,898 | 15,599,483 | ||||||
4.25%, 03/15/23 (Call 12/15/22)(a) | 2,777 | 2,906,167 | ||||||
4.50%, 04/15/24 (Call 03/15/24)(a) | 7,280 | 7,770,728 | ||||||
4.75%, 01/15/26 (Call 10/15/25) | 10,201 | 11,047,775 | ||||||
4.95%, 06/15/28 (Call 03/15/28) | 7,979 | 8,732,147 | ||||||
5.15%, 03/15/45 (Call 09/15/44)(a) | 15,730 | 16,269,644 | ||||||
5.20%, 02/01/22 (Call 11/01/21)(a) | 2,422 | 2,548,924 | ||||||
5.25%, 04/15/29 (Call 01/15/29) | 23,883 | 26,799,250 | ||||||
5.30%, 04/15/47 (Call 10/15/46) | 12,318 | 13,099,874 | ||||||
5.50%, 06/01/27 (Call 03/01/27) | 7,388 | 8,298,060 | ||||||
5.88%, 01/15/24 (Call 10/15/23)(a) | 10,400 | 11,549,862 | ||||||
6.13%, 12/15/45 (Call 06/15/45) | 13,192 | 15,265,401 | ||||||
6.25%, 04/15/49 (Call 10/15/48)(a) | 19,256 | 22,968,832 | ||||||
6.50%, 02/01/42 (Call 08/01/41) | 13,360 | 15,865,751 | ||||||
Series 30Y, 6.00%, 06/15/48 (Call 12/15/47) | 9,600 | 11,088,612 | ||||||
Energy Transfer Partners LP/Regency Energy Finance Corp., 5.88%, 03/01/22 (Call 12/01/21) | 8,036 | 8,586,379 | ||||||
Enterprise Products Operating LLC | ||||||||
3.13%, 07/31/29 (Call 04/30/29) | 14,610 | 15,004,913 | ||||||
3.35%, 03/15/23 (Call 12/15/22)(a) | 13,915 | 14,402,161 | ||||||
3.70%, 02/15/26 (Call 11/15/25)(a) | 15,445 | 16,436,663 | ||||||
3.75%, 02/15/25 (Call 11/15/24) | 12,996 | 13,870,709 | ||||||
3.90%, 02/15/24 (Call 11/15/23) | 3,886 | 4,137,536 | ||||||
4.15%, 10/16/28 (Call 07/16/28) | 18,696 | 20,648,042 | ||||||
4.20%, 01/31/50 (Call 07/31/49)(a) | 14,085 | 14,886,308 | ||||||
4.25%, 02/15/48 (Call 08/15/47) | 10,849 | 11,530,682 | ||||||
4.45%, 02/15/43 (Call 08/15/42) | 13,674 | 14,725,387 | ||||||
4.80%, 02/01/49 (Call 08/01/48) | 13,987 | 16,136,893 | ||||||
4.85%, 08/15/42 (Call 02/15/42)(a) | 9,819 | 11,335,935 | ||||||
4.85%, 03/15/44 (Call 09/15/43)(a) | 16,333 | 18,626,248 | ||||||
4.90%, 05/15/46 (Call 11/15/45)(a) | 11,324 | 13,126,706 | ||||||
5.10%, 02/15/45 (Call 08/15/44)(a) | 11,884 | 13,897,207 | ||||||
5.95%, 02/01/41 | 9,716 | 12,332,901 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
EQM Midstream Partners LP | ||||||||
4.75%, 07/15/23 (Call 06/15/23) | $ | 6,583 | $ | 6,513,504 | ||||
5.50%, 07/15/28 (Call 04/15/28)(a) | 11,393 | 11,087,125 | ||||||
Kinder Morgan Energy Partners LP | ||||||||
3.95%, 09/01/22 (Call 06/01/22) | 8,235 | 8,585,378 | ||||||
5.50%, 03/01/44 (Call 09/01/43)(a) | 8,754 | 9,957,577 | ||||||
6.95%, 01/15/38(a) | 13,517 | 17,440,031 | ||||||
Kinder Morgan Inc./DE | ||||||||
3.15%, 01/15/23 (Call 12/15/22)(a) | 10,300 | 10,553,549 | ||||||
4.30%, 06/01/25 (Call 03/01/25)(a) | 11,175 | 12,084,691 | ||||||
4.30%, 03/01/28 (Call 12/01/27) | 13,900 | 15,063,230 | ||||||
5.05%, 02/15/46 (Call 08/15/45) | 12,927 | 14,226,877 | ||||||
5.20%, 03/01/48 (Call 09/01/47)(a) | 10,935 | 12,436,205 | ||||||
5.30%, 12/01/34 (Call 06/01/34) | 5,434 | 6,256,893 | ||||||
5.55%, 06/01/45 (Call 12/01/44)(a) | 19,070 | 22,354,710 | ||||||
7.75%, 01/15/32 | 6,580 | 9,071,025 | ||||||
MPLX LP | ||||||||
4.00%, 03/15/28 (Call 12/15/27) | 19,073 | 19,823,290 | ||||||
4.13%, 03/01/27 (Call 12/01/26)(a) | 17,546 | 18,402,689 | ||||||
4.25%, 12/01/27 (Call 09/01/27)(a)(b) | 4,306 | 4,533,585 | ||||||
4.50%, 07/15/23 (Call 04/15/23)(a) | 9,805 | 10,433,782 | ||||||
4.50%, 04/15/38 (Call 10/15/37) | 20,114 | 20,471,482 | ||||||
4.70%, 04/15/48 (Call 10/15/47) | 13,230 | 13,397,520 | ||||||
4.80%, 02/15/29 (Call 11/15/28)(a) | 10,843 | 11,902,132 | ||||||
4.88%, 12/01/24 (Call 09/01/24) | 11,729 | 12,807,567 | ||||||
4.88%, 06/01/25 (Call 03/01/25) | 13,369 | 14,660,393 | ||||||
5.20%, 03/01/47 (Call 09/01/46)(a) | 9,316 | 9,990,657 | ||||||
5.25%, 01/15/25 (Call 01/15/21)(b) | 2,085 | 2,190,416 | ||||||
5.50%, 02/15/49 (Call 08/15/48) | 19,786 | 22,160,164 | ||||||
ONEOK Inc. | ||||||||
3.40%, 09/01/29 (Call 06/01/29) | 7,050 | 7,025,833 | ||||||
4.45%, 09/01/49 (Call 03/01/49) | 6,275 | 6,214,737 | ||||||
4.55%, 07/15/28 (Call 04/15/28)(a) | 16,375 | 17,738,148 | ||||||
5.20%, 07/15/48 (Call 01/15/48) | 10,383 | 11,411,041 | ||||||
ONEOK Partners LP, 3.38%, 10/01/22 (Call 07/01/22) | 9,542 | 9,793,496 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | ||||||||
3.55%, 12/15/29 (Call 09/15/29) | 1,300 | 1,244,298 | ||||||
3.60%, 11/01/24 (Call 08/01/24) | 9,596 | 9,825,435 | ||||||
3.65%, 06/01/22 (Call 03/01/22) | 3,317 | 3,400,629 | ||||||
4.50%, 12/15/26 (Call 09/15/26)(a) | 5,754 | 6,068,596 | ||||||
4.65%, 10/15/25 (Call 07/15/25)(a) | 15,313 | 16,358,576 | ||||||
Sabine Pass Liquefaction LLC | ||||||||
4.20%, 03/15/28 (Call 09/15/27) | 11,545 | 12,182,221 | ||||||
5.00%, 03/15/27 (Call 09/15/26) | 22,785 | 25,015,137 | ||||||
5.63%, 04/15/23 (Call 01/15/23)(a) | 14,112 | 15,349,706 | ||||||
5.63%, 03/01/25 (Call 12/01/24) | 21,908 | 24,569,903 | ||||||
5.75%, 05/15/24 (Call 02/15/24)(a) | 21,641 | 24,174,133 | ||||||
5.88%, 06/30/26 (Call 12/31/25) | 14,452 | 16,560,501 | ||||||
6.25%, 03/15/22 (Call 12/15/21)(a) | 4,362 | 4,694,808 | ||||||
Spectra Energy Partners LP, 4.75%, 03/15/24 (Call 12/15/23)(a) | 5,453 | 5,949,688 | ||||||
Sunoco Logistics Partners Operations LP | ||||||||
4.00%, 10/01/27 (Call 07/01/27)(a) | 3,850 | 3,982,877 | ||||||
5.35%, 05/15/45 (Call 11/15/44) | 11,179 | 11,789,283 | ||||||
5.40%, 10/01/47 (Call 04/01/47) | 11,959 | 12,840,071 | ||||||
TransCanada PipeLines Ltd. | ||||||||
2.50%, 08/01/22(a) | 9,701 | 9,828,387 | ||||||
4.25%, 05/15/28 (Call 02/15/28)(a) | 21,548 | 23,804,547 | ||||||
4.63%, 03/01/34 (Call 12/01/33) | 15,222 | 17,335,072 | ||||||
4.88%, 01/15/26 (Call 10/15/25) | 2,344 | 2,619,781 |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
4.88%, 05/15/48 (Call 11/15/47)(a) | $ | 8,392 | $ | 9,701,412 | ||||
5.10%, 03/15/49 (Call 09/15/48)(a) | 15,897 | 19,084,562 | ||||||
6.10%, 06/01/40 | 8,699 | 11,179,593 | ||||||
6.20%, 10/15/37 | 8,018 | 10,308,375 | ||||||
7.63%, 01/15/39(a) | 11,416 | 16,899,405 | ||||||
Transcontinental Gas Pipe Line Co. LLC, 7.85%, 02/01/26 (Call 11/01/25) | 12,146 | 15,389,634 | ||||||
Williams Companies Inc. (The) | ||||||||
3.35%, 08/15/22 (Call 05/15/22)(a) | 7,418 | 7,614,341 | ||||||
3.60%, 03/15/22 (Call 01/15/22)(a) | 10,089 | 10,373,652 | ||||||
3.70%, 01/15/23 (Call 10/15/22) | 100 | 103,491 | ||||||
3.75%, 06/15/27 (Call 03/15/27)(a) | 15,831 | 16,505,534 | ||||||
3.90%, 01/15/25 (Call 10/15/24) | 10,417 | 10,904,900 | ||||||
4.00%, 09/15/25 (Call 06/15/25) | 9,875 | 10,435,728 | ||||||
4.30%, 03/04/24 (Call 12/04/23) | 6,011 | 6,393,193 | ||||||
4.55%, 06/24/24 (Call 03/24/24)(a) | 250 | 269,375 | ||||||
4.85%, 03/01/48 (Call 09/01/47)(a) | 11,766 | 12,550,540 | ||||||
5.10%, 09/15/45 (Call 03/15/45) | 11,819 | 12,874,233 | ||||||
6.30%, 04/15/40 | 14,055 | 17,030,736 | ||||||
|
| |||||||
1,314,695,503 | ||||||||
Real Estate Investment Trusts — 1.5% | ||||||||
Alexandria Real Estate Equities Inc., 3.38%, 08/15/31 (Call 05/15/31)(a) | 10,905 | 11,453,815 | ||||||
American Tower Corp. | ||||||||
3.38%, 10/15/26 (Call 07/15/26) | 15,722 | 16,354,985 | ||||||
3.50%, 01/31/23 | 9,535 | 9,916,085 | ||||||
3.55%, 07/15/27 (Call 04/15/27) | 9,363 | 9,872,196 | ||||||
3.80%, 08/15/29 (Call 05/15/29)(a) | 21,931 | 23,392,763 | ||||||
4.00%, 06/01/25 (Call 03/01/25) | 8,973 | 9,640,058 | ||||||
5.00%, 02/15/24(a) | 12,034 | 13,313,468 | ||||||
Boston Properties LP | ||||||||
2.75%, 10/01/26 (Call 07/01/26)(a) | 16,309 | 16,534,974 | ||||||
3.20%, 01/15/25 (Call 10/15/24)(a) | 9,351 | 9,717,458 | ||||||
3.40%, 06/21/29 (Call 03/21/29)(a) | 10,780 | 11,345,496 | ||||||
3.65%, 02/01/26 (Call 11/03/25) | 9,986 | 10,631,070 | ||||||
3.85%, 02/01/23 (Call 11/01/22)(a) | 10,479 | 11,007,526 | ||||||
4.50%, 12/01/28 (Call 09/01/28) | 13,209 | 15,014,975 | ||||||
Brixmor Operating Partnership LP, 4.13%, 05/15/29 (Call 02/15/29) | 361 | 390,680 | ||||||
CC Holdings GS V LLC/Crown Castle GS III Corp., 3.85%, 04/15/23 | 10,377 | 10,936,101 | ||||||
Crown Castle International Corp. | ||||||||
3.15%, 07/15/23 (Call 06/15/23)(a) | 8,115 | 8,354,637 | ||||||
3.20%, 09/01/24 (Call 07/01/24) | 7,579 | 7,851,081 | ||||||
3.65%, 09/01/27 (Call 06/01/27) | 10,298 | 10,914,906 | ||||||
3.70%, 06/15/26 (Call 03/15/26)(a) | 14,123 | 14,978,915 | ||||||
3.80%, 02/15/28 (Call 11/15/27)(a) | 18,121 | 19,345,534 | ||||||
4.45%, 02/15/26 (Call 11/15/25) | 12,349 | 13,565,059 | ||||||
5.25%, 01/15/23(a) | 16,763 | 18,295,177 | ||||||
Digital Realty Trust LP | ||||||||
3.60%, 07/01/29 (Call 04/01/29) | 12,240 | 12,844,635 | ||||||
3.70%, 08/15/27 (Call 05/15/27) | 13,832 | 14,576,441 | ||||||
ERP Operating LP | ||||||||
4.50%, 07/01/44 (Call 01/01/44) | 7,768 | 9,294,500 | ||||||
4.63%, 12/15/21 (Call 09/15/21) | 2,037 | 2,135,182 | ||||||
GLP Capital LP/GLP Financing II Inc. | ||||||||
5.25%, 06/01/25 (Call 03/01/25) | 11,749 | 12,911,279 | ||||||
5.30%, 01/15/29 (Call 10/15/28) | 6,571 | 7,286,564 | ||||||
5.38%, 04/15/26 (Call 01/15/26) | 10,561 | 11,650,472 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Real Estate Investment Trusts (continued) | ||||||||
HCP Inc. | ||||||||
3.88%, 08/15/24 (Call 05/17/24)(a) | $ | 10,905 | $ | 11,646,388 | ||||
4.00%, 06/01/25 (Call 03/01/25)(a) | 7,079 | 7,646,911 | ||||||
4.25%, 11/15/23 (Call 08/15/23) | 1,175 | 1,262,958 | ||||||
Realty Income Corp. | ||||||||
3.25%, 10/15/22 (Call 07/15/22)(a) | 6,357 | 6,576,358 | ||||||
4.65%, 08/01/23 (Call 05/01/23) | 2,637 | 2,867,643 | ||||||
Simon Property Group LP | ||||||||
2.00%, 09/13/24 (Call 06/13/24) | 10,575 | 10,554,115 | ||||||
2.45%, 09/13/29 (Call 06/13/29)(a) | 15,500 | 15,337,721 | ||||||
3.25%, 11/30/26 (Call 08/30/26)(a) | 8,344 | 8,793,459 | ||||||
3.25%, 09/13/49 (Call 03/13/49)(a) | 13,130 | 12,965,690 | ||||||
3.30%, 01/15/26 (Call 10/15/25) | 9,225 | 9,717,161 | ||||||
3.38%, 10/01/24 (Call 07/01/24)(a) | 9,340 | 9,857,472 | ||||||
3.38%, 06/15/27 (Call 03/15/27) | 5,125 | 5,449,682 | ||||||
3.38%, 12/01/27 (Call 09/01/27)(a) | 7,582 | 8,089,958 | ||||||
Ventas Realty LP, 4.40%, 01/15/29 (Call 10/15/28) | 3,523 | 3,926,033 | ||||||
Welltower Inc. | ||||||||
3.10%, 01/15/30 (Call 10/15/29)(a) | 11,575 | 11,709,728 | ||||||
3.63%, 03/15/24 (Call 02/15/24)(a) | 2,150 | 2,268,906 | ||||||
4.00%, 06/01/25 (Call 03/01/25)(a) | 20,386 | 21,983,594 | ||||||
4.25%, 04/15/28 (Call 01/15/28)(a) | 6,858 | 7,578,962 | ||||||
Weyerhaeuser Co. | ||||||||
4.00%, 11/15/29 (Call 08/15/29) | 1,038 | 1,128,505 | ||||||
7.38%, 03/15/32(a) | 20,682 | 28,888,781 | ||||||
|
| |||||||
531,776,057 | ||||||||
Retail — 3.7% | ||||||||
Costco Wholesale Corp. | ||||||||
2.75%, 05/18/24 (Call 03/18/24)(a) | 9,193 | 9,531,951 | ||||||
3.00%, 05/18/27 (Call 02/18/27)(a) | 11,607 | 12,332,765 | ||||||
Dollar General Corp., 3.25%, 04/15/23 (Call 01/15/23)(a) | 5,611 | 5,818,210 | ||||||
Dollar Tree Inc. | ||||||||
3.70%, 05/15/23 (Call 04/15/23) | 12,160 | 12,694,940 | ||||||
4.00%, 05/15/25 (Call 03/15/25)(a) | 7,060 | 7,579,059 | ||||||
4.20%, 05/15/28 (Call 02/15/28)(a) | 21,392 | 23,238,125 | ||||||
Home Depot Inc. (The) | ||||||||
2.13%, 09/15/26 (Call 06/15/26)(a) | 9,884 | 9,881,263 | ||||||
2.70%, 04/01/23 (Call 01/01/23)(a) | 11,107 | 11,421,378 | ||||||
2.80%, 09/14/27 (Call 06/14/27)(a) | 13,431 | 14,008,294 | ||||||
2.95%, 06/15/29 (Call 03/15/29) | 15,589 | 16,352,951 | ||||||
3.00%, 04/01/26 (Call 01/01/26)(a) | 11,631 | 12,219,766 | ||||||
3.35%, 09/15/25 (Call 06/15/25)(a) | 11,221 | 12,029,088 | ||||||
3.50%, 09/15/56 (Call 03/15/56)(a) | 9,007 | 9,607,654 | ||||||
3.75%, 02/15/24 (Call 11/15/23)(a) | 10,689 | 11,497,801 | ||||||
3.90%, 12/06/28 (Call 09/06/28)(a) | 10,985 | 12,429,342 | ||||||
3.90%, 06/15/47 (Call 12/15/46) | 8,374 | 9,584,179 | ||||||
4.20%, 04/01/43 (Call 10/01/42)(a) | 16,210 | 18,990,728 | ||||||
4.25%, 04/01/46 (Call 10/01/45)(a) | 17,139 | 20,513,642 | ||||||
4.40%, 03/15/45 (Call 09/15/44) | 16,471 | 19,931,391 | ||||||
4.50%, 12/06/48 (Call 06/06/48)(a) | 17,890 | 22,439,062 | ||||||
4.88%, 02/15/44 (Call 08/15/43) | 14,556 | 18,652,885 | ||||||
5.88%, 12/16/36(a) | 32,255 | 44,817,406 | ||||||
5.95%, 04/01/41 (Call 10/01/40)(a) | 12,330 | 17,561,964 | ||||||
Lowe’s Companies Inc. | ||||||||
2.50%, 04/15/26 (Call 01/15/26) | 14,975 | 15,033,473 | ||||||
3.10%, 05/03/27 (Call 02/03/27) | 12,887 | 13,320,967 | ||||||
3.38%, 09/15/25 (Call 06/15/25) | 10,175 | 10,769,437 | ||||||
3.65%, 04/05/29 (Call 01/05/29)(a) | 15,549 | 16,698,912 | ||||||
3.70%, 04/15/46 (Call 10/15/45) | 11,448 | 11,521,658 |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
4.05%, 05/03/47 (Call 11/03/46) | $ | 16,306 | $ | 17,329,290 | ||||
4.38%, 09/15/45 (Call 03/15/45) | 14,904 | 16,361,489 | ||||||
4.55%, 04/05/49 (Call 10/05/48)(a) | 20,487 | 23,347,211 | ||||||
4.65%, 04/15/42 (Call 10/15/41)(a) | 5,996 | 6,793,575 | ||||||
Macy’s Retail Holdings Inc., 2.88%, 02/15/23 (Call 11/15/22)(a) | 4,544 | 4,514,647 | ||||||
McDonald’s Corp. | ||||||||
2.63%, 09/01/29 (Call 06/01/29) | 15,525 | 15,611,743 | ||||||
3.35%, 04/01/23 (Call 03/01/23)(a) | 8,930 | 9,330,551 | ||||||
3.50%, 03/01/27 (Call 12/01/26)(a) | 6,965 | 7,458,964 | ||||||
3.63%, 09/01/49 (Call 03/01/49)(a) | 11,225 | 11,404,351 | ||||||
3.70%, 01/30/26 (Call 10/30/25)(a) | 16,784 | 18,125,891 | ||||||
3.80%, 04/01/28 (Call 01/01/28)(a) | 7,069 | 7,760,057 | ||||||
4.45%, 03/01/47 (Call 09/01/46)(a) | 20,369 | 23,486,533 | ||||||
4.45%, 09/01/48 (Call 03/01/48)(a) | 15,456 | 17,872,770 | ||||||
4.70%, 12/09/35 (Call 06/09/35) | 13,133 | 15,550,213 | ||||||
4.88%, 12/09/45 (Call 06/09/45)(a) | 6,590 | 8,003,208 | ||||||
6.30%, 10/15/37(a) | 13,237 | 18,011,618 | ||||||
6.30%, 03/01/38 | 6,578 | 9,006,607 | ||||||
O’Reilly Automotive Inc., 3.60%, 09/01/27 (Call 06/01/27) | 4,570 | 4,882,170 | ||||||
Starbucks Corp. | ||||||||
3.10%, 03/01/23 (Call 02/01/23)(a) | 9,832 | 10,173,087 | ||||||
3.55%, 08/15/29 (Call 05/15/29) | 14,934 | 16,133,172 | ||||||
3.80%, 08/15/25 (Call 06/15/25)(a) | 16,913 | 18,358,119 | ||||||
3.85%, 10/01/23 (Call 07/01/23) | 6,876 | 7,315,392 | ||||||
4.00%, 11/15/28 (Call 08/15/28) | 9,504 | 10,612,964 | ||||||
4.45%, 08/15/49 (Call 02/15/49)(a) | 5,780 | 6,676,796 | ||||||
4.50%, 11/15/48 (Call 05/15/48)(a) | 18,719 | 21,629,243 | ||||||
Target Corp. | ||||||||
2.50%, 04/15/26(a) | 13,602 | 13,924,887 | ||||||
3.38%, 04/15/29 (Call 01/15/29)(a) | 11,209 | 12,178,409 | ||||||
3.50%, 07/01/24(a) | 10,213 | 10,954,130 | ||||||
3.63%, 04/15/46(a) | 15,613 | 17,047,688 | ||||||
3.90%, 11/15/47 (Call 05/15/47)(a) | 13,653 | 15,594,593 | ||||||
4.00%, 07/01/42(a) | 13,293 | 15,224,999 | ||||||
TJX Companies Inc. (The), 2.25%, 09/15/26 (Call 06/15/26)(a) | 14,659 | 14,717,441 | ||||||
Walgreen Co., 3.10%, 09/15/22(a) | 13,128 | 13,528,388 | ||||||
Walgreens Boots Alliance Inc. | ||||||||
3.45%, 06/01/26 (Call 03/01/26) | 25,652 | 26,602,153 | ||||||
3.80%, 11/18/24 (Call 08/18/24)(a) | 19,336 | 20,467,703 | ||||||
4.80%, 11/18/44 (Call 05/18/44)(a) | 17,200 | 18,358,645 | ||||||
Walmart Inc. | ||||||||
2.35%, 12/15/22 (Call 11/15/22) | 10,161 | 10,334,342 | ||||||
2.55%, 04/11/23 (Call 01/11/23)(a) | 14,212 | 14,532,202 | ||||||
2.65%, 12/15/24 (Call 10/15/24) | 17,152 | 17,748,471 | ||||||
2.85%, 07/08/24 (Call 06/08/24)(a) | 17,584 | 18,343,119 | ||||||
2.95%, 09/24/49 (Call 03/24/49) | 8,316 | 8,294,075 | ||||||
3.05%, 07/08/26 (Call 05/08/26)(a) | 13,411 | 14,252,819 | ||||||
3.25%, 07/08/29 (Call 04/08/29) | 17,895 | 19,355,491 | ||||||
3.30%, 04/22/24 (Call 01/22/24) | 17,534 | 18,517,910 | ||||||
3.40%, 06/26/23 (Call 05/26/23)(a) | 29,861 | 31,463,237 | ||||||
3.55%, 06/26/25 (Call 04/26/25)(a) | 24,912 | 26,982,999 | ||||||
3.63%, 12/15/47 (Call 06/15/47)(a) | 23,427 | 26,240,470 | ||||||
3.70%, 06/26/28 (Call 03/26/28) | 41,501 | 46,071,970 | ||||||
3.95%, 06/28/38 (Call 12/28/37)(a) | 21,584 | 25,213,816 | ||||||
4.05%, 06/29/48 (Call 12/29/47) | 33,689 | 40,231,737 | ||||||
5.25%, 09/01/35 | 23,541 | 31,053,364 | ||||||
5.63%, 04/01/40(a) | 3,481 | 4,863,603 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
5.63%, 04/15/41 | $ | 6,170 | $ | 8,735,815 | ||||
6.20%, 04/15/38(a) | 4,764 | 7,054,237 | ||||||
|
| |||||||
1,294,116,665 | ||||||||
Semiconductors — 2.2% | ||||||||
Analog Devices Inc. | ||||||||
3.50%, 12/05/26 (Call 09/05/26)(a) | 8,932 | 9,388,671 | ||||||
3.90%, 12/15/25 (Call 09/15/25) | 17,181 | 18,530,274 | ||||||
Applied Materials Inc. | ||||||||
3.30%, 04/01/27 (Call 01/01/27) | 19,916 | 21,273,992 | ||||||
4.35%, 04/01/47 (Call 10/01/46)(a) | 6,447 | 7,825,944 | ||||||
Broadcom Corp./Broadcom Cayman Finance Ltd. | ||||||||
2.65%, 01/15/23 (Call 12/15/22)(a) | 10,448 | 10,468,193 | ||||||
3.13%, 01/15/25 (Call 11/15/24)(a) | 20,388 | 20,370,191 | ||||||
3.50%, 01/15/28 (Call 10/15/27) | 14,510 | 14,192,153 | ||||||
3.63%, 01/15/24 (Call 11/15/23) | 22,809 | 23,464,357 | ||||||
3.88%, 01/15/27 (Call 10/15/26) | 56,567 | 57,124,208 | ||||||
Broadcom Inc. | ||||||||
3.63%, 10/15/24 (Call 09/15/24)(a)(b) | 27,292 | 28,024,817 | ||||||
4.25%, 04/15/26 (Call 02/15/26)(a)(b) | 29,681 | 30,956,458 | ||||||
4.75%, 04/15/29 (Call 01/15/29)(a)(b) | 33,165 | 35,106,071 | ||||||
Intel Corp. | ||||||||
2.60%, 05/19/26 (Call 02/19/26)(a) | 18,761 | 19,300,439 | ||||||
2.70%, 12/15/22 | 15,050 | 15,457,853 | ||||||
2.88%, 05/11/24 (Call 03/11/24) | 12,566 | 13,074,909 | ||||||
3.15%, 05/11/27 (Call 02/11/27) | 11,865 | 12,637,673 | ||||||
3.70%, 07/29/25 (Call 04/29/25)(a) | 23,054 | 25,060,145 | ||||||
3.73%, 12/08/47 (Call 06/08/47)(a) | 23,906 | 26,725,813 | ||||||
4.00%, 12/15/32 | 13,022 | 15,098,797 | ||||||
4.10%, 05/19/46 (Call 11/19/45)(a) | 10,051 | 11,726,728 | ||||||
4.10%, 05/11/47 (Call 11/11/46)(a) | 15,855 | 18,497,485 | ||||||
4.80%, 10/01/41(a) | 4,945 | 6,244,309 | ||||||
4.90%, 07/29/45 (Call 01/29/45)(a) | 7,686 | 9,940,119 | ||||||
KLA Corp. | ||||||||
4.10%, 03/15/29 (Call 12/15/28)(a) | 13,857 | 15,320,847 | ||||||
4.65%, 11/01/24 (Call 08/01/24)(a) | 12,698 | 14,003,041 | ||||||
Lam Research Corp. | ||||||||
3.75%, 03/15/26 (Call 01/15/26)(a) | 12,890 | 13,867,048 | ||||||
4.00%, 03/15/29 (Call 12/15/28)(a) | 18,821 | 20,811,983 | ||||||
4.88%, 03/15/49 (Call 09/15/48) | 5,270 | 6,480,614 | ||||||
Microchip Technology Inc., 4.33%, 06/01/23 (Call 05/01/23)(a) | 10,831 | 11,461,019 | ||||||
Micron Technology Inc. | ||||||||
4.19%, 02/15/27 (Call 12/15/26)(a) | 9,085 | 9,462,635 | ||||||
4.66%, 02/15/30 (Call 11/15/29) | 11,383 | 11,988,959 | ||||||
NVIDIA Corp., 3.20%, 09/16/26 (Call 06/16/26)(a) | 10,105 | 10,620,957 | ||||||
NXP BV/NXP Funding LLC, 4.88%, 03/01/24 (Call 02/01/24)(a)(b) | 4,172 | 4,532,754 | ||||||
NXP BV/NXP Funding LLC/NXP USA Inc. | ||||||||
3.88%, 06/18/26 (Call 04/18/26)(a)(b) | 15,142 | 15,901,137 | ||||||
4.30%, 06/18/29 (Call 03/18/29)(a)(b) | 13,237 | 14,118,253 | ||||||
QUALCOMM Inc. | ||||||||
2.60%, 01/30/23 (Call 12/30/22)(a) | 14,535 | 14,800,499 | ||||||
2.90%, 05/20/24 (Call 03/20/24) | 17,463 | 18,009,351 | ||||||
3.00%, 05/20/22 | 2,643 | 2,711,028 | ||||||
3.25%, 05/20/27 (Call 02/20/27)(a) | 20,678 | 21,760,590 | ||||||
3.45%, 05/20/25 (Call 02/20/25)(a) | 21,988 | 23,309,688 | ||||||
4.30%, 05/20/47 (Call 11/20/46)(a) | 16,669 | 18,737,341 | ||||||
4.65%, 05/20/35 (Call 11/20/34)(a) | 7,753 | 9,140,903 | ||||||
4.80%, 05/20/45 (Call 11/20/44)(a) | 17,808 | 21,206,525 |
Security | Par (000) | Value | ||||||
Semiconductors (continued) | ||||||||
Texas Instruments Inc. | ||||||||
2.25%, 09/04/29 (Call 06/04/29)(a) | $ | 3,065 | $ | 3,025,102 | ||||
3.88%, 03/15/39 (Call 09/15/38) | 3,010 | 3,432,843 | ||||||
4.15%, 05/15/48 (Call 11/15/47)(a) | 17,767 | 21,519,154 | ||||||
|
| |||||||
756,711,870 | ||||||||
Software — 3.9% | ||||||||
Fidelity National Information Services Inc. | ||||||||
3.00%, 08/15/26 (Call 05/15/26)(a) | 14,762 | 15,251,852 | ||||||
3.50%, 04/15/23 (Call 01/15/23) | 1,844 | 1,922,979 | ||||||
3.75%, 05/21/29 (Call 02/21/29)(a) | 11,484 | 12,483,038 | ||||||
5.00%, 10/15/25 (Call 07/15/25) | 12,504 | 14,288,556 | ||||||
Fiserv Inc. | ||||||||
2.75%, 07/01/24 (Call 06/01/24) | 28,346 | 28,938,831 | ||||||
3.20%, 07/01/26 (Call 05/01/26)(a) | 19,220 | 20,075,373 | ||||||
3.50%, 07/01/29 (Call 04/01/29)(a) | 36,064 | 38,134,088 | ||||||
3.80%, 10/01/23 (Call 09/01/23)(a) | 8,183 | 8,670,546 | ||||||
3.85%, 06/01/25 (Call 03/01/25)(a) | 15,134 | 16,306,847 | ||||||
4.20%, 10/01/28 (Call 07/01/28)(a) | 8,542 | 9,489,521 | ||||||
4.40%, 07/01/49 (Call 01/01/49) | 25,731 | 28,736,075 | ||||||
Microsoft Corp. | ||||||||
2.00%, 08/08/23 (Call 06/08/23) | 14,479 | 14,608,680 | ||||||
2.13%, 11/15/22(a) | 5,859 | 5,933,393 | ||||||
2.38%, 05/01/23 (Call 02/01/23) | 13,212 | 13,479,432 | ||||||
2.40%, 08/08/26 (Call 05/08/26)(a) | 42,490 | 43,511,336 | ||||||
2.65%, 11/03/22 (Call 09/03/22) | 7,596 | 7,797,713 | ||||||
2.70%, 02/12/25 (Call 11/12/24) | 27,353 | 28,461,554 | ||||||
2.88%, 02/06/24 (Call 12/06/23) | 20,195 | 21,035,962 | ||||||
3.13%, 11/03/25 (Call 08/03/25)(a) | 30,240 | 32,195,872 | ||||||
3.30%, 02/06/27 (Call 11/06/26) | 45,488 | 49,226,731 | ||||||
3.45%, 08/08/36 (Call 02/08/36) | 26,238 | 28,752,954 | ||||||
3.50%, 02/12/35 (Call 08/12/34) | 15,066 | 16,512,154 | ||||||
3.50%, 11/15/42(a) | 10,483 | 11,519,963 | ||||||
3.63%, 12/15/23 (Call 09/15/23) | 15,451 | 16,538,165 | ||||||
3.70%, 08/08/46 (Call 02/08/46) | 50,573 | 57,519,040 | ||||||
3.75%, 02/12/45 (Call 08/12/44)(a) | 14,429 | 16,476,263 | ||||||
3.95%, 08/08/56 (Call 02/08/56)(a) | 26,856 | 31,801,309 | ||||||
4.00%, 02/12/55 (Call 08/12/54) | 28,754 | 34,245,660 | ||||||
4.10%, 02/06/37 (Call 08/06/36)(a) | 29,252 | 34,653,648 | ||||||
4.20%, 11/03/35 (Call 05/03/35)(a) | 12,193 | 14,486,379 | ||||||
4.25%, 02/06/47 (Call 08/06/46) | 35,384 | 43,667,118 | ||||||
4.45%, 11/03/45 (Call 05/03/45) | 35,160 | 44,756,148 | ||||||
4.50%, 10/01/40(a) | 15,024 | 18,888,397 | ||||||
4.50%, 02/06/57 (Call 08/06/56) | 23,203 | 30,017,197 | ||||||
4.75%, 11/03/55 (Call 05/03/55) | 12,338 | 16,537,296 | ||||||
5.20%, 06/01/39(a) | 7,096 | 9,545,514 | ||||||
5.30%, 02/08/41(a) | 9,268 | 12,680,317 | ||||||
Oracle Corp. | ||||||||
2.40%, 09/15/23 (Call 07/15/23)(a) | 26,689 | 27,067,837 | ||||||
2.50%, 10/15/22(a) | 12,790 | 13,030,703 | ||||||
2.63%, 02/15/23 (Call 01/15/23)(a) | 13,330 | 13,604,069 | ||||||
2.65%, 07/15/26 (Call 04/15/26)(a) | 32,434 | 33,289,405 | ||||||
2.95%, 11/15/24 (Call 09/15/24)(a) | 25,158 | 26,193,883 | ||||||
2.95%, 05/15/25 (Call 02/15/25) | 31,081 | 32,364,362 | ||||||
3.25%, 11/15/27 (Call 08/15/27)(a) | 36,182 | 38,529,752 | ||||||
3.40%, 07/08/24 (Call 04/08/24)(a) | 18,058 | 19,106,216 | ||||||
3.63%, 07/15/23(a) | 13,760 | 14,579,957 | ||||||
3.80%, 11/15/37 (Call 05/15/37)(a) | 22,917 | 25,138,732 | ||||||
3.85%, 07/15/36 (Call 01/15/36) | 10,836 | 11,955,519 | ||||||
3.90%, 05/15/35 (Call 11/15/34) | 17,172 | 19,134,050 | ||||||
4.00%, 07/15/46 (Call 01/15/46) | 36,167 | 40,244,862 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Software (continued) | ||||||||
4.00%, 11/15/47 (Call 05/15/47)(a) | $ | 28,944 | $ | 32,370,599 | ||||
4.13%, 05/15/45 (Call 11/15/44) | 20,227 | 22,797,908 | ||||||
4.30%, 07/08/34 (Call 01/08/34) | 21,749 | 25,482,109 | ||||||
4.38%, 05/15/55 (Call 11/15/54)(a) | 9,361 | 11,062,368 | ||||||
4.50%, 07/08/44 (Call 01/08/44)(a) | 13,691 | 16,238,033 | ||||||
5.38%, 07/15/40 | 27,169 | 35,269,810 | ||||||
6.13%, 07/08/39 | 11,753 | 16,550,778 | ||||||
6.50%, 04/15/38(a) | 6,940 | 10,028,133 | ||||||
salesforce.com Inc. | ||||||||
3.25%, 04/11/23 (Call 03/11/23) | 9,720 | 10,130,333 | ||||||
3.70%, 04/11/28 (Call 01/11/28)(a) | 18,798 | 20,728,429 | ||||||
VMware Inc., 3.90%, 08/21/27 (Call 05/21/27)(a) | 17,258 | 17,813,782 | ||||||
|
| |||||||
1,381,857,530 | ||||||||
Telecommunications — 6.7% | ||||||||
AT&T Inc. | ||||||||
2.63%, 12/01/22 (Call 09/01/22) | 10,414 | 10,572,509 | ||||||
3.00%, 02/15/22 | 2,866 | 2,930,252 | ||||||
3.00%, 06/30/22 (Call 04/30/22) | 10,960 | 11,212,458 | ||||||
3.20%, 03/01/22 (Call 02/01/22) | 1,466 | 1,503,877 | ||||||
3.40%, 05/15/25 (Call 02/15/25)(a) | 47,267 | 49,469,004 | ||||||
3.55%, 06/01/24 (Call 03/01/24) | 3,679 | 3,860,623 | ||||||
3.60%, 02/17/23 (Call 12/17/22)(a) | 14,773 | 15,421,449 | ||||||
3.60%, 07/15/25 (Call 04/15/25) | 22,632 | 23,918,174 | ||||||
3.80%, 03/01/24 (Call 01/01/24) | 1,565 | 1,658,388 | ||||||
3.80%, 02/15/27 (Call 11/15/26) | 15,161 | 16,198,952 | ||||||
3.90%, 03/11/24 (Call 12/11/23) | 4,728 | 5,015,035 | ||||||
3.95%, 01/15/25 (Call 10/15/24)(a) | 21,999 | 23,545,611 | ||||||
4.10%, 02/15/28 (Call 11/15/27) | 18,111 | 19,632,619 | ||||||
4.13%, 02/17/26 (Call 11/17/25)(a) | 35,644 | 38,638,520 | ||||||
4.25%, 03/01/27 (Call 12/01/26)(a) | 22,460 | 24,534,830 | ||||||
4.30%, 02/15/30 (Call 11/15/29) | 38,001 | 41,797,190 | ||||||
4.30%, 12/15/42 (Call 06/15/42)(a) | 24,411 | 25,640,975 | ||||||
4.35%, 03/01/29 (Call 12/01/28)(a) | 29,846 | 32,984,567 | ||||||
4.35%, 06/15/45 (Call 12/15/44) | 34,027 | 35,758,665 | ||||||
4.45%, 04/01/24 (Call 01/01/24) | 16,459 | 17,812,514 | ||||||
4.50%, 05/15/35 (Call 11/15/34)(a) | 31,066 | 34,104,075 | ||||||
4.50%, 03/09/48 (Call 09/09/47)(a) | 51,633 | 55,063,440 | ||||||
4.55%, 03/09/49 (Call 09/09/48) | 31,142 | 33,468,423 | ||||||
4.75%, 05/15/46 (Call 11/15/45)(a) | 41,939 | 46,373,307 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 30,161 | 33,502,881 | ||||||
4.85%, 03/01/39 (Call 09/01/38)(a) | 20,361 | 22,888,645 | ||||||
4.85%, 07/15/45 (Call 01/15/45)(a) | 10,232 | 11,409,004 | ||||||
4.90%, 08/15/37 (Call 02/14/37) | 15,253 | 17,296,197 | ||||||
5.15%, 03/15/42(a) | 17,029 | 19,597,011 | ||||||
5.15%, 11/15/46 (Call 05/15/46)(a) | 22,240 | 25,830,088 | ||||||
5.15%, 02/15/50 (Call 08/14/49)(a) | 15,004 | 17,541,350 | ||||||
5.25%, 03/01/37 (Call 09/01/36) | 35,527 | 41,813,719 | ||||||
5.35%, 09/01/40(a) | 20,172 | 23,901,769 | ||||||
5.45%, 03/01/47 (Call 09/01/46)(a) | 23,344 | 28,183,601 | ||||||
5.55%, 08/15/41 | 8,147 | 9,780,398 | ||||||
5.65%, 02/15/47 (Call 08/15/46) | 19,572 | 24,129,512 | ||||||
5.70%, 03/01/57 (Call 09/01/56) | 11,892 | 14,914,377 | ||||||
6.00%, 08/15/40 (Call 05/15/40) | 9,808 | 12,300,410 | ||||||
6.30%, 01/15/38(a) | 705 | 902,575 | ||||||
6.38%, 03/01/41 | 11,957 | 15,557,687 | ||||||
British Telecommunications PLC, 9.63%, 12/15/30 | 30,049 | 46,100,482 | ||||||
Cisco Systems Inc. | ||||||||
2.20%, 09/20/23 (Call 07/20/23)(a) | 12,948 | 13,117,460 | ||||||
2.50%, 09/20/26 (Call 06/20/26)(a) | 12,673 | 13,046,129 | ||||||
2.95%, 02/28/26 | 8,445 | 8,916,861 |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
3.63%, 03/04/24(a) | $ | 8,561 | $ | 9,187,980 | ||||
5.50%, 01/15/40 | 24,346 | 33,427,672 | ||||||
5.90%, 02/15/39 | 21,483 | 30,403,717 | ||||||
Deutsche Telekom International Finance BV, 8.75%, 06/15/30 | 40,983 | 60,442,556 | ||||||
Orange SA | ||||||||
5.38%, 01/13/42(a) | 8,980 | 11,389,153 | ||||||
5.50%, 02/06/44 (Call 08/06/43)(a) | 8,004 | 10,500,171 | ||||||
9.00%, 03/01/31(a) | 36,797 | 57,309,565 | ||||||
Rogers Communications Inc. | ||||||||
4.10%, 10/01/23 (Call 07/01/23) | 3,917 | 4,175,645 | ||||||
4.30%, 02/15/48 (Call 08/15/47)(a) | 7,644 | 8,534,653 | ||||||
4.35%, 05/01/49 (Call 11/01/48) | 19,098 | 21,451,840 | ||||||
5.00%, 03/15/44 (Call 09/15/43)(a) | 10,554 | 12,764,567 | ||||||
Telefonica Emisiones SA | ||||||||
4.10%, 03/08/27(a) | 19,630 | 21,327,184 | ||||||
4.57%, 04/27/23 | 6,371 | 6,868,523 | ||||||
4.67%, 03/06/38(a) | 11,122 | 12,222,811 | ||||||
4.90%, 03/06/48(a) | 15,771 | 17,649,591 | ||||||
5.21%, 03/08/47(a) | 29,693 | 34,604,445 | ||||||
5.52%, 03/01/49 (Call 09/01/48)(a) | 13,720 | 16,646,897 | ||||||
7.05%, 06/20/36(a) | 19,933 | 27,652,939 | ||||||
Telefonica Europe BV, 8.25%, 09/15/30(a) | 10,426 | 15,076,566 | ||||||
TELUS Corp., 4.60%, 11/16/48 (Call 05/16/48) | 4,402 | 5,162,744 | ||||||
Verizon Communications Inc. | ||||||||
2.63%, 08/15/26(a) | 23,214 | 23,676,298 | ||||||
3.38%, 02/15/25 | 34,198 | 36,295,093 | ||||||
3.50%, 11/01/24 (Call 08/01/24) | 23,272 | 24,705,653 | ||||||
3.85%, 11/01/42 (Call 05/01/42)(a) | 11,005 | 11,779,532 | ||||||
3.88%, 02/08/29 (Call 11/08/28)(a) | 9,771 | 10,798,721 | ||||||
4.02%, 12/03/29 (Call 09/03/29) | 45,294 | 50,595,495 | ||||||
4.13%, 03/16/27(a) | 35,981 | 40,042,485 | ||||||
4.13%, 08/15/46(a) | 19,603 | 21,860,223 | ||||||
4.27%, 01/15/36 | 33,481 | 37,882,978 | ||||||
4.33%, 09/21/28 | 76,761 | 87,156,804 | ||||||
4.40%, 11/01/34 (Call 05/01/34) | 27,911 | 32,234,495 | ||||||
4.50%, 08/10/33 | 34,093 | 39,854,533 | ||||||
4.52%, 09/15/48(a) | 51,101 | 60,443,315 | ||||||
4.67%, 03/15/55 | 35,254 | 43,280,641 | ||||||
4.75%, 11/01/41 | 2,597 | 3,124,840 | ||||||
4.81%, 03/15/39(a) | 17,686 | 21,399,254 | ||||||
4.86%, 08/21/46 | 40,988 | 50,668,062 | ||||||
5.01%, 04/15/49 | 40,433 | 51,545,933 | ||||||
5.01%, 08/21/54(a) | 22,590 | 29,013,975 | ||||||
5.15%, 09/15/23 | 8,563 | 9,565,987 | ||||||
5.25%, 03/16/37(a) | 30,118 | 37,720,979 | ||||||
5.50%, 03/16/47(a) | 18,874 | 25,359,318 | ||||||
6.55%, 09/15/43(a) | 8,836 | 13,156,621 | ||||||
Vodafone Group PLC | ||||||||
2.95%, 02/19/23 | 100 | 102,522 | ||||||
3.75%, 01/16/24(a) | 25,496 | 26,860,964 | ||||||
4.13%, 05/30/25(a) | 20,813 | 22,558,730 | ||||||
4.25%, 09/17/50 | 16,290 | 16,691,177 | ||||||
4.38%, 05/30/28 | 40,140 | 44,601,577 | ||||||
4.38%, 02/19/43(a) | 12,431 | 12,953,638 | ||||||
4.88%, 06/19/49(a) | 19,737 | 22,160,419 | ||||||
5.00%, 05/30/38 | 6,585 | 7,537,430 | ||||||
5.25%, 05/30/48(a) | 32,744 | 38,449,829 | ||||||
6.15%, 02/27/37(a) | 19,400 | 24,743,422 | ||||||
|
| |||||||
2,367,465,775 |
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Transportation — 1.4% | ||||||||
Burlington Northern Santa Fe LLC | ||||||||
3.55%, 02/15/50 (Call 08/15/49)(a) | $ | 5,145 | $ | 5,461,952 | ||||
3.85%, 09/01/23 (Call 06/01/23)(a) | 5,250 | 5,601,622 | ||||||
3.90%, 08/01/46 (Call 02/01/46)(a) | 11,556 | 12,866,044 | ||||||
4.05%, 06/15/48 (Call 12/15/47) | 9,623 | 10,997,153 | ||||||
4.13%, 06/15/47 (Call 12/15/46) | 8,701 | 10,012,740 | ||||||
4.15%, 04/01/45 (Call 10/01/44) | 14,374 | 16,507,705 | ||||||
4.15%, 12/15/48 (Call 06/15/48)(a) | 8,057 | 9,366,707 | ||||||
4.45%, 03/15/43 (Call 09/15/42)(a) | 12,246 | 14,490,293 | ||||||
4.55%, 09/01/44 (Call 03/01/44) | 4,022 | 4,822,303 | ||||||
4.90%, 04/01/44 (Call 10/01/43)(a) | 9,919 | 12,384,267 | ||||||
5.75%, 05/01/40 (Call 11/01/39) | 8,316 | 11,187,427 | ||||||
Canadian Pacific Railway Co., 6.13%, 09/15/2115 (Call 03/15/2115) | 8,876 | 12,948,102 | ||||||
CSX Corp. | ||||||||
3.25%, 06/01/27 (Call 03/01/27) | 15,494 | 16,338,273 | ||||||
3.80%, 03/01/28 (Call 12/01/27) | 9,830 | 10,732,976 | ||||||
3.80%, 11/01/46 (Call 05/01/46) | 6,361 | 6,688,964 | ||||||
4.10%, 03/15/44 (Call 09/15/43)(a) | 12,976 | 14,179,542 | ||||||
4.25%, 03/15/29 (Call 12/15/28)(a) | 9,211 | 10,431,789 | ||||||
4.30%, 03/01/48 (Call 09/01/47) | 9,081 | 10,291,729 | ||||||
FedEx Corp. | ||||||||
3.10%, 08/05/29 (Call 05/05/29)(a) | 13,647 | 13,655,289 | ||||||
3.25%, 04/01/26 (Call 01/01/26)(a) | 7,744 | 8,024,275 | ||||||
4.00%, 01/15/24 | 5,944 | 6,341,375 | ||||||
4.05%, 02/15/48 (Call 08/15/47) | 12,920 | 12,732,930 | ||||||
4.40%, 01/15/47 (Call 07/15/46) | 10,082 | 10,341,197 | ||||||
4.55%, 04/01/46 (Call 10/01/45) | 15,013 | 15,700,456 | ||||||
4.75%, 11/15/45 (Call 05/15/45) | 15,321 | 16,493,162 | ||||||
4.95%, 10/17/48 (Call 04/17/48) | 7,453 | 8,300,076 | ||||||
5.10%, 01/15/44 | 8,984 | 10,092,244 | ||||||
Norfolk Southern Corp., 5.10%, 08/01/2118 (Call 02/01/2118) | 6,035 | 7,263,600 | ||||||
Union Pacific Corp. | ||||||||
3.70%, 03/01/29 (Call 12/01/28) | 11,427 | 12,500,346 | ||||||
3.80%, 10/01/51 (Call 04/01/51)(a) | 6,820 | 7,275,897 | ||||||
3.95%, 09/10/28 (Call 06/10/28) | 38,594 | 42,798,427 | ||||||
4.30%, 03/01/49 (Call 09/01/48)(a) | 8,145 | 9,451,381 | ||||||
4.38%, 09/10/38 (Call 03/10/38) | 6,327 | 7,315,212 | ||||||
4.50%, 09/10/48 (Call 03/10/48) | 19,086 | 23,015,540 | ||||||
United Parcel Service Inc. | ||||||||
2.45%, 10/01/22(a) | 8,329 | 8,467,530 |
Security | Par/ Shares (000) | Value | ||||||
Transportation (continued) | ||||||||
2.50%, 04/01/23 (Call 03/01/23) | $ | 8,844 | $ | 9,010,056 | ||||
3.05%, 11/15/27 (Call 08/15/27)(a) | 15,087 | 15,855,453 | ||||||
3.40%, 03/15/29 (Call 12/15/28) | 2,418 | 2,601,736 | ||||||
3.75%, 11/15/47 (Call 05/15/47)(a) | 13,154 | 14,161,899 | ||||||
4.25%, 03/15/49 (Call 09/15/48) | 3,984 | 4,615,740 | ||||||
6.20%, 01/15/38(a) | 15,997 | 22,494,026 | ||||||
|
| |||||||
483,817,435 | ||||||||
Water — 0.0% | ||||||||
American Water Capital Corp. | ||||||||
3.75%, 09/01/47 (Call 03/01/47)(a) | 11,676 | 12,572,717 | ||||||
6.59%, 10/15/37 | 2,229 | 3,149,582 | ||||||
|
| |||||||
15,722,299 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 99.1% |
| 34,834,857,125 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 6.5% | ||||||||
BlackRock Cash Funds: Institutional, | 2,139,165 | 2,140,234,374 | ||||||
BlackRock Cash Funds: Treasury, | 129,196 | 129,196,000 | ||||||
|
| |||||||
2,269,430,374 | ||||||||
|
| |||||||
Total Short-Term Investments — 6.5% |
| 2,269,430,374 | ||||||
|
| |||||||
Total Investments in Securities — 105.6% |
| 37,104,287,499 | ||||||
Other Assets, Less Liabilities — (5.6)% |
| (1,956,509,985 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 35,147,777,514 | |||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to a recently published shareholder report. Shareholder reports are available on the Fund’s website at iShares.com and on the U.S. Securities and Exchange Commission website at sec.gov.
SCHEDULES OF INVESTMENTS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 34,834,857,125 | $ | — | $ | 34,834,857,125 | ||||||||
Money Market Funds | 2,269,430,374 | — | — | 2,269,430,374 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,269,430,374 | $ | 34,834,857,125 | $ | — | $ | 37,104,287,499 | |||||||||
|
|
|
|
|
|
|
|
2019ISHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Assets and Liabilities (unaudited)
October 31, 2019
iShares iBoxx $ High Yield Corporate Bond ETF | iShares iBoxx $ Investment Grade Corporate Bond ETF | |||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||
Unaffiliated(b) | $ | 18,531,560,045 | $ | 34,834,857,125 | ||||
Affiliated(c) | 3,427,952,449 | 2,269,430,374 | ||||||
Receivables: | ||||||||
Investments sold | 88,791,902 | 64,754,425 | ||||||
Securities lending income — Affiliated | 1,395,126 | 615,595 | ||||||
Capital shares sold | 10,092,688 | 2,530,401 | ||||||
Dividends | 403,157 | 232,451 | ||||||
Interest | 283,218,075 | 337,701,161 | ||||||
|
|
|
| |||||
Total assets | 22,343,413,442 | 37,510,121,532 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Bank overdraft | 578,418 | 816,652 | ||||||
Collateral on securities loaned, at value | 3,115,111,037 | 2,138,673,977 | ||||||
Payables: | ||||||||
Investments purchased | 157,203,755 | 215,645,369 | ||||||
Capital shares redeemed | 2,655,504 | 2,877,963 | ||||||
Investment advisory fees | 7,627,227 | 4,330,057 | ||||||
Total liabilities | 3,283,175,941 | 2,362,344,018 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 19,060,237,501 | $ | 35,147,777,514 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 20,203,127,232 | $ | 32,901,230,870 | ||||
Accumulated earnings (loss) | (1,142,889,731 | ) | 2,246,546,644 | |||||
|
|
|
| |||||
NET ASSETS | $ | 19,060,237,501 | $ | 35,147,777,514 | ||||
|
|
|
| |||||
Shares outstanding | 219,500,000 | 275,300,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 86.83 | $ | 127.67 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Securities loaned, at value | $ | 2,983,845,012 | $ | 2,082,989,320 | ||||
(b) Investments, at cost — Unaffiliated | $ | 18,912,837,345 | $ | 33,148,512,424 | ||||
(c) Investments, at cost — Affiliated | $ | 3,426,541,726 | $ | 2,268,457,523 |
FINANCIAL STATEMENTS |
Schedule of Investments February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes |
| |||||||
Advertising — 0.4% | ||||||||
Lamar Media Corp. | ||||||||
5.00%, 05/01/23 (Call 04/01/19)(a) | $ | 10,803 | $ | 11,017,653 | ||||
5.38%, 01/15/24 (Call 04/01/19)(a) | 9,075 | 9,324,563 | ||||||
5.75%, 02/01/26 (Call 02/01/21)(a) | 9,536 | 9,965,120 | ||||||
5.75%, 02/01/26 (Call 02/01/21)(b) | 1,552 | 1,623,780 | ||||||
Outfront Media Capital LLC/Outfront Media Capital Corp. | ||||||||
5.25%, 02/15/22 (Call 04/01/19)(a) | 10,887 | 11,053,571 | ||||||
5.63%, 02/15/24 (Call 04/01/19)(a) | 8,504 | 8,748,490 | ||||||
5.88%, 03/15/25 (Call 09/15/19)(a) | 10,143 | 10,399,618 | ||||||
|
| |||||||
62,132,795 | ||||||||
Aerospace & Defense — 2.4% | ||||||||
Arconic Inc. | ||||||||
5.13%, 10/01/24 (Call 07/01/24)(a) | 23,429 | 23,260,311 | ||||||
5.40%, 04/15/21 (Call 01/15/21) | 23,921 | 24,561,351 | ||||||
5.87%, 02/23/22 | 11,986 | 12,530,365 | ||||||
6.15%, 08/15/20(a) | 12,519 | 12,947,776 | ||||||
Bombardier Inc. | ||||||||
5.75%, 03/15/22(b) | 9,095 | 9,160,370 | ||||||
6.00%, 10/15/22 (Call 04/01/19)(a)(b) | 23,735 | 23,853,675 | ||||||
6.13%, 01/15/23(a)(b) | 23,343 | 23,518,072 | ||||||
7.50%, 12/01/24 (Call 12/01/20)(a)(b) | 18,501 | 18,824,767 | ||||||
7.50%, 03/15/25 (Call 03/15/20)(a)(b) | 26,753 | 26,987,089 | ||||||
7.75%, 03/15/20(b) | 8,812 | 9,220,436 | ||||||
7.88%, 04/15/27(b) | 7,740 | 7,681,640 | ||||||
8.75%, 12/01/21(b) | 26,454 | 29,104,360 | ||||||
TransDigm Inc. | ||||||||
5.50%, 10/15/20 (Call 03/15/19)(a) | 7,243 | 7,251,084 | ||||||
6.00%, 07/15/22 (Call 04/01/19) | 20,404 | 20,781,474 | ||||||
6.25%, 03/15/26 (Call 03/15/22)(a)(b) | 39,574 | 40,513,882 | ||||||
6.38%, 06/15/26 (Call 06/15/21)(a) | 16,308 | 15,866,326 | ||||||
6.50%, 07/15/24 (Call 07/15/19)(a) | 19,206 | 19,377,327 | ||||||
6.50%, 05/15/25 (Call 05/15/20) | 13,922 | 13,869,793 | ||||||
7.50%, 03/15/27 (Call 03/15/22)(b) | 10,019 | 10,068,093 | ||||||
TransDigm UK Holdings PLC, 6.88%, 05/15/26 (Call 05/15/21)(a)(b) | 8,557 | 8,332,379 | ||||||
Triumph Group Inc., 7.75%, 08/15/25 (Call 08/15/20)(a) | 10,244 | 9,817,594 | ||||||
|
| |||||||
367,528,164 | ||||||||
Agriculture — 0.1% | ||||||||
JBS Investments II GmbH, 7.00%, 01/15/26 (Call 01/15/22)(b) | 8,084 | 8,322,882 | ||||||
Vector Group Ltd., 6.13%, 02/01/25 (Call 02/01/20)(b) | 15,749 | 13,937,865 | ||||||
|
| |||||||
22,260,747 | ||||||||
Airlines — 0.1% | ||||||||
Air Canada, 7.75%, 04/15/21(a)(b) | 7,955 | 8,530,865 | ||||||
American Airlines Group Inc., 4.63%, 03/01/20(a)(b) | 5,791 | 5,827,193 | ||||||
United Continental Holdings Inc., 4.25%, 10/01/22(a) | 9,076 | 9,072,044 | ||||||
|
| |||||||
23,430,102 | ||||||||
Apparel — 0.2% | ||||||||
Hanesbrands Inc. | ||||||||
4.63%, 05/15/24 (Call 02/15/24)(a)(b) | 18,244 | 18,221,195 | ||||||
4.88%, 05/15/26 (Call 02/15/26)(a)(b) | 16,845 | 16,602,375 | ||||||
|
| |||||||
34,823,570 | ||||||||
Auto Manufacturers — 0.9% | ||||||||
Allison Transmission Inc. | ||||||||
4.75%, 10/01/27 (Call 10/01/22)(b) | 6,710 | 6,424,825 | ||||||
5.00%, 10/01/24 (Call 10/01/19)(a)(b) | 18,453 | 18,591,397 |
Security | Par (000) | Value | ||||||
Auto Manufacturers (continued) | ||||||||
Fiat Chrysler Automobiles NV | ||||||||
4.50%, 04/15/20(a) | $ | 16,385 | $ | 16,509,808 | ||||
5.25%, 04/15/23(a) | 27,701 | 27,978,010 | ||||||
Jaguar Land Rover Automotive PLC | ||||||||
3.50%, 03/15/20 (Call 12/15/19)(a)(b) | 5,032 | 4,958,753 | ||||||
4.50%, 10/01/27 (Call 07/01/27)(a)(b) | 8,822 | 6,859,516 | ||||||
5.63%, 02/01/23 (Call 04/01/19)(a)(b) | 6,651 | 6,418,215 | ||||||
Navistar International Corp., 6.63%, 11/01/25 (Call 11/01/20)(a)(b) | 20,665 | 21,296,376 | ||||||
Tesla Inc., 5.30%, 08/15/25 (Call 08/15/20)(a)(b) | 33,409 | 29,741,587 | ||||||
|
| |||||||
138,778,487 | ||||||||
Auto Parts & Equipment — 0.6% | ||||||||
American Axle & Manufacturing Inc. | ||||||||
6.25%, 04/01/25 (Call 04/01/20)(a) | 13,280 | 13,239,828 | ||||||
6.25%, 03/15/26 (Call 03/15/21)(a) | 6,865 | 6,736,281 | ||||||
6.50%, 04/01/27 (Call 04/01/22) | 9,610 | 9,483,097 | ||||||
6.63%, 10/15/22 (Call 04/01/19)(a) | 8,380 | 8,568,550 | ||||||
Dana Financing Luxembourg Sarl, 5.75%, 04/15/25 (Call 04/15/20)(a)(b) | 6,221 | 6,185,683 | ||||||
Dana Inc., 5.50%, 12/15/24 (Call 12/15/19)(a) | 8,110 | 8,064,381 | ||||||
Goodyear Tire & Rubber Co. (The) | ||||||||
4.88%, 03/15/27 (Call 12/15/26)(a) | 12,657 | 11,627,959 | ||||||
5.00%, 05/31/26 (Call 05/31/21)(a) | 17,809 | 16,874,028 | ||||||
5.13%, 11/15/23 (Call 04/01/19)(a) | 18,670 | 18,700,806 | ||||||
|
| |||||||
99,480,613 | ||||||||
Banks — 1.2% | ||||||||
CIT Group Inc. | ||||||||
4.13%, 03/09/21 (Call 02/09/21)(a) | 9,791 | 9,888,910 | ||||||
4.75%, 02/16/24 (Call 11/16/23)(a) | 9,423 | 9,623,239 | ||||||
5.00%, 08/15/22(a) | 20,770 | 21,476,803 | ||||||
5.00%, 08/01/23(a) | 15,478 | 16,052,698 | ||||||
5.25%, 03/07/25 (Call 12/07/24)(a) | 9,269 | 9,728,186 | ||||||
6.13%, 03/09/28(a) | 6,889 | 7,489,621 | ||||||
Deutsche Bank AG, 4.30%, 05/24/28 (Call 05/24/23)(a)(c)(d) | 26,792 | 23,871,616 | ||||||
Deutsche Bank AG/New York NY, 4.88%, 12/01/32 (Call 12/01/27)(a)(c)(d) | 17,964 | 15,161,894 | ||||||
Fifth Third Bancorp., 5.10%, | 12,663 | 12,116,908 | ||||||
Freedom Mortgage Corp. | ||||||||
8.13%, 11/15/24 (Call 11/15/20)(b) | 9,373 | 8,787,188 | ||||||
8.25%, 04/15/25 (Call 04/15/21)(b) | 11,698 | 10,996,120 | ||||||
Intesa Sanpaolo SpA, 5.02%, 06/26/24(b) | 17,704 | 16,401,713 | ||||||
UniCredit SpA, 5.86%, 06/19/32 (Call 06/19/27)(b)(c)(d) | 19,371 | 17,318,660 | ||||||
|
| |||||||
178,913,556 | ||||||||
Building Materials — 0.7% | ||||||||
Griffon Corp., 5.25%, 03/01/22 | 19,638 | 19,441,620 | ||||||
Standard Industries Inc./NJ | ||||||||
4.75%, 01/15/28 (Call 01/15/23)(a)(b) | 18,679 | 17,464,865 | ||||||
5.00%, 02/15/27 (Call 02/15/22)(b) | 9,080 | 8,698,640 | ||||||
5.38%, 11/15/24 (Call 11/15/19)(a)(b) | 19,744 | 20,098,569 | ||||||
5.50%, 02/15/23 (Call 04/01/19)(a)(b) | 8,727 | 8,934,266 | ||||||
6.00%, 10/15/25 (Call 10/15/20)(a)(b) | 19,867 | 20,736,181 | ||||||
Summit Materials LLC/Summit Materials Finance Corp., 6.13%, 07/15/23 (Call 03/18/19)(a) | 12,226 | 12,520,188 | ||||||
|
| |||||||
107,894,329 | ||||||||
Chemicals — 1.8% | ||||||||
Ashland LLC, 4.75%, 08/15/22 | 20,977 | 21,553,867 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Chemicals (continued) | ||||||||
Blue Cube Spinco LLC | ||||||||
9.75%, 10/15/23 (Call 10/15/20)(a) | $ | 11,035 | $ | 12,361,959 | ||||
10.00%, 10/15/25 (Call 10/15/20)(a) | 9,304 | 10,653,080 | ||||||
CF Industries Inc. | ||||||||
3.45%, 06/01/23(a) | 14,625 | 14,155,782 | ||||||
7.13%, 05/01/20 | 5,791 | 6,018,930 | ||||||
Chemours Co. (The) | ||||||||
5.38%, 05/15/27 (Call 02/15/27)(a) | 9,739 | 9,516,322 | ||||||
6.63%, 05/15/23 (Call 04/01/19)(a) | 16,821 | 17,473,655 | ||||||
7.00%, 05/15/25 (Call 05/15/20)(a) | 14,552 | 15,184,102 | ||||||
Element Solutions Inc., 5.88%, 12/01/25 (Call 12/01/20)(a)(b) | 15,286 | 15,467,598 | ||||||
Hexion Inc. | ||||||||
6.63%, 04/15/20 (Call 04/01/19)(a) | 23,338 | 19,895,645 | ||||||
10.38%, 02/01/22 (Call 04/01/19)(b) | 10,492 | 8,891,970 | ||||||
Hexion Inc./Hexion Nova Scotia Finance ULC, 9.00%, 11/15/20 (Call 04/01/19)(a) | 5,123 | 1,662,574 | ||||||
Huntsman International LLC | ||||||||
4.88%, 11/15/20 (Call 03/27/19) | 10,862 | 11,133,550 | ||||||
5.13%, 11/15/22 (Call 08/15/22)(a) | 8,202 | 8,571,090 | ||||||
NOVA Chemicals Corp. | ||||||||
4.88%, 06/01/24 (Call 03/03/24)(a)(b) | 19,506 | 18,885,709 | ||||||
5.00%, 05/01/25 (Call 01/31/25)(a)(b) | 10,781 | 10,336,284 | ||||||
5.25%, 08/01/23 (Call 04/01/19)(a)(b) | 8,997 | 8,966,775 | ||||||
5.25%, 06/01/27 (Call 03/03/27)(a)(b) | 18,192 | 17,093,483 | ||||||
Olin Corp. | ||||||||
5.00%, 02/01/30 (Call 02/01/24)(a) | 10,807 | 10,509,807 | ||||||
5.13%, 09/15/27 (Call 03/15/22)(a) | 10,343 | 10,420,572 | ||||||
Tronox Finance PLC, 5.75%, 10/01/25 (Call 10/01/20)(a)(b) | 10,211 | 9,457,939 | ||||||
Tronox Inc., 6.50%, 04/15/26 | 10,655 | 10,095,613 | ||||||
WR Grace & Co.-Conn, 5.13%, 10/01/21(a)(b) | 13,057 | 13,434,217 | ||||||
|
| |||||||
281,740,523 | ||||||||
Coal — 0.1% | ||||||||
Peabody Energy Corp. | ||||||||
6.00%, 03/31/22 (Call 04/01/19)(b) | 6,191 | 6,248,557 | ||||||
6.38%, 03/31/25 (Call 03/31/20)(b) | 6,906 | 6,798,957 | ||||||
|
| |||||||
13,047,514 | ||||||||
Commercial Services — 4.0% | ||||||||
ADT Security Corp. (The) | ||||||||
3.50%, 07/15/22 | 20,255 | 19,881,546 | ||||||
4.13%, 06/15/23 | 13,439 | 13,180,720 | ||||||
6.25%, 10/15/21 | 20,017 | 21,126,212 | ||||||
APX Group Inc. | ||||||||
7.63%, 09/01/23 (Call 09/01/19)(a) | 7,227 | 6,368,794 | ||||||
7.88%, 12/01/22 (Call 04/01/19) | 18,024 | 17,922,615 | ||||||
8.75%, 12/01/20 (Call 04/01/19)(a) | 12,052 | 11,976,675 | ||||||
Avis Budget Car Rental LLC/Avis Budget Finance Inc., 5.50%, 04/01/23 (Call 04/01/19)(a) | 13,335 | 13,485,019 | ||||||
Hertz Corp. (The) | ||||||||
5.50%, 10/15/24 (Call 10/15/19)(b) | 14,151 | 12,006,976 | ||||||
5.88%, 10/15/20 (Call 04/01/19) | 12,592 | 12,582,163 | ||||||
6.25%, 10/15/22 (Call 04/01/19)(a) | 9,167 | 8,688,242 | ||||||
7.38%, 01/15/21 (Call 04/01/19)(a) | 11,233 | 11,231,050 | ||||||
7.63%, 06/01/22 (Call 06/01/19)(b) | 24,310 | 24,856,975 | ||||||
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, 6.38%, 08/01/23 (Call 04/01/19)(a)(b) | 21,455 | 21,686,744 |
Security | Par (000) | Value | ||||||
Commercial Services (continued) | ||||||||
Nielsen Co Luxembourg SARL/The | ||||||||
5.00%, 02/01/25 (Call 02/01/20)(a)(b) | $ | 10,728 | $ | 10,593,900 | ||||
5.50%, 10/01/21 (Call 04/01/19)(a)(b) | 13,535 | 13,653,901 | ||||||
Nielsen Finance LLC/Nielsen Finance Co. | ||||||||
4.50%, 10/01/20 (Call 04/01/19)(a) | 15,138 | 15,137,587 | ||||||
5.00%, 04/15/22 (Call 04/01/19)(a)(b) | 42,546 | 42,599,182 | ||||||
Prime Security Services Borrower LLC/Prime Finance Inc., 9.25%, 05/15/23 (Call 05/15/19)(a)(b) | 36,407 | 38,391,181 | ||||||
Refinitiv U.S. Holdings Inc. | ||||||||
6.25%, 05/15/26 (Call 11/15/21)(a)(b) | 23,408 | 23,585,667 | ||||||
8.25%, 11/15/26 (Call 11/15/21)(a)(b) | 29,245 | 28,632,683 | ||||||
Service Corp. International/U.S. | ||||||||
4.63%, 12/15/27 (Call 12/15/22)(a) | 10,602 | 10,496,974 | ||||||
5.38%, 01/15/22 (Call 04/01/19)(a) | 4,742 | 4,794,137 | ||||||
5.38%, 05/15/24 (Call 05/15/19)(a) | 16,853 | 17,262,506 | ||||||
ServiceMaster Co. LLC (The), 5.13%, 11/15/24 (Call 11/15/19)(b) | 15,398 | 15,489,426 | ||||||
Star Merger Sub Inc. | ||||||||
6.88%, 08/15/26 (Call 02/15/22)(b) | 3,935 | 3,948,773 | ||||||
10.25%, 02/15/27 (Call 02/15/22)(b) | 13,638 | 14,026,683 | ||||||
United Rentals North America Inc. | ||||||||
4.63%, 07/15/23 (Call 04/01/19)(a) | 18,078 | 18,431,284 | ||||||
4.63%, 10/15/25 (Call 10/15/20)(a) | 14,044 | 13,640,634 | ||||||
4.88%, 01/15/28 (Call 01/15/23)(a) | 30,133 | 28,739,349 | ||||||
5.50%, 07/15/25 (Call 07/15/20) | 15,343 | 15,688,218 | ||||||
5.50%, 05/15/27 (Call 05/15/22)(a) | 18,740 | 18,735,315 | ||||||
5.75%, 11/15/24 (Call 05/15/19)(a) | 16,435 | 16,928,050 | ||||||
5.88%, 09/15/26 (Call 09/15/21)(a) | 19,007 | 19,416,185 | ||||||
6.50%, 12/15/26 (Call 12/15/21)(a) | 20,073 | 20,951,194 | ||||||
Verscend Escrow Corp., 9.75%, 08/15/26 (Call 08/15/21)(a)(b) | 20,930 | 21,466,331 | ||||||
|
| |||||||
607,602,891 | ||||||||
Computers — 1.9% | ||||||||
Banff Merger Sub Inc., 9.75%, 09/01/26 (Call 09/01/21)(b) | 27,334 | 26,548,148 | ||||||
Dell Inc., 4.63%, 04/01/21(a) | 8,325 | 8,474,496 | ||||||
Dell International LLC/EMC Corp. | ||||||||
5.88%, 06/15/21 (Call 03/18/19)(a)(b) | 30,922 | 31,555,901 | ||||||
7.13%, 06/15/24 (Call 06/15/19)(a)(b) | 31,203 | 32,997,173 | ||||||
EMC Corp. | ||||||||
2.65%, 06/01/20 | 23,721 | 23,446,726 | ||||||
3.38%, 06/01/23 (Call 03/01/23) | 19,353 | 18,681,693 | ||||||
Exela Intermediate LLC/Exela Finance Inc., 10.00%, 07/15/23 (Call 07/15/20)(a)(b) | 19,277 | 19,678,353 | ||||||
Harland Clarke Holdings Corp. | ||||||||
8.38%, 08/15/22 (Call 04/01/19)(b) | 14,707 | 13,714,278 | ||||||
9.25%, 03/01/21 (Call 04/01/19)(a)(b) | 13,527 | 13,391,730 | ||||||
Leidos Holdings Inc., 4.45%, 12/01/20 (Call 09/01/20)(a) | 8,647 | 8,801,565 | ||||||
NCR Corp. | ||||||||
4.63%, 02/15/21 (Call 04/01/19)(a) | 6,405 | 6,405,000 | ||||||
5.00%, 07/15/22 (Call 04/01/19)(a) | 11,744 | 11,705,261 | ||||||
5.88%, 12/15/21 (Call 04/01/19)(a) | 8,147 | 8,269,205 | ||||||
6.38%, 12/15/23 (Call 04/01/19)(a) | 12,753 | 12,960,236 | ||||||
West Corp., 8.50%, 10/15/25 | 21,246 | 17,620,901 | ||||||
Western Digital Corp., 4.75%, 02/15/26 (Call 11/15/25)(a) | 42,994 | 40,683,072 | ||||||
|
| |||||||
294,933,738 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Cosmetics & Personal Care — 0.4% | ||||||||
Avon International Operations Inc., 7.88%, 08/15/22 (Call 08/15/19)(a)(b) | $ | 9,748 | $ | 10,058,041 | ||||
Avon Products Inc. | ||||||||
6.60%, 03/15/20 | 4,508 | 4,589,708 | ||||||
7.00%, 03/15/23(a) | 9,809 | 9,425,223 | ||||||
Edgewell Personal Care Co. | ||||||||
4.70%, 05/19/21(a) | 11,915 | 12,063,937 | ||||||
4.70%, 05/24/22(a) | 10,804 | 10,896,698 | ||||||
First Quality Finance Co. Inc. | ||||||||
4.63%, 05/15/21 (Call 04/01/19)(a)(b) | 10,175 | 10,190,368 | ||||||
5.00%, 07/01/25 (Call 07/01/20)(a)(b) | 6,347 | 6,204,193 | ||||||
|
| |||||||
63,428,168 | ||||||||
Diversified Financial Services — 4.1% | ||||||||
Ally Financial Inc. | ||||||||
4.13%, 03/30/20(a) | 7,301 | 7,346,533 | ||||||
4.13%, 02/13/22(a) | 13,048 | 13,149,937 | ||||||
4.25%, 04/15/21(a) | 9,841 | 9,945,561 | ||||||
4.63%, 05/19/22(a) | 8,779 | 8,962,810 | ||||||
4.63%, 03/30/25(a) | 9,314 | 9,488,637 | ||||||
5.13%, 09/30/24(a) | 13,941 | 14,620,624 | ||||||
5.75%, 11/20/25 (Call 10/21/25)(a) | 18,985 | 20,130,880 | ||||||
7.50%, 09/15/20(a) | 6,158 | 6,541,638 | ||||||
8.00%, 03/15/20 | 12,283 | 12,864,343 | ||||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | ||||||||
5.88%, 02/01/22 (Call 04/01/19) | 25,569 | 25,888,612 | ||||||
6.00%, 08/01/20 (Call 04/01/19)(a) | 27,656 | 27,945,130 | ||||||
6.25%, 02/01/22 (Call 04/01/19)(a) | 23,232 | 23,924,314 | ||||||
6.38%, 12/15/25 (Call 12/15/20) | 15,038 | 15,526,735 | ||||||
6.75%, 02/01/24 (Call 02/01/20)(a) | 11,468 | 12,008,169 | ||||||
Jefferies Finance LLC/JFIN Co-Issuer Corp. | ||||||||
6.88%, 04/15/22 (Call 04/01/19)(a)(b) | 7,679 | 7,674,201 | ||||||
7.25%, 08/15/24 (Call 08/15/20)(b) | 5,996 | 5,838,605 | ||||||
7.38%, 04/01/20 (Call 04/01/19)(a)(b) | 5,506 | 5,511,736 | ||||||
7.50%, 04/15/21 (Call 04/01/19)(b) | 7,754 | 7,894,541 | ||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. | ||||||||
5.25%, 03/15/22 (Call 09/15/21)(a)(b) | 7,805 | 7,965,978 | ||||||
5.25%, 10/01/25 (Call 10/01/20)(a)(b) | 6,541 | 6,148,540 | ||||||
Lions Gate Capital Holdings LLC | ||||||||
5.88%, 11/01/24 (Call 11/01/19)(a)(b) | 1,070 | 1,085,248 | ||||||
6.38%, 02/01/24 (Call 02/01/21)(b) | 5,445 | 5,573,913 | ||||||
Nationstar Mortgage Holdings Inc. | ||||||||
8.13%, 07/15/23 (Call 07/15/20)(b) | 18,365 | 18,732,300 | ||||||
9.13%, 07/15/26 (Call 07/15/21)(a)(b) | 14,141 | 14,466,537 | ||||||
Nationstar Mortgage LLC/Nationstar Capital Corp., 6.50%, 07/01/21 (Call 04/01/19) | 9,480 | 9,500,666 | ||||||
Navient Corp. | ||||||||
5.00%, 10/26/20(a) | 9,546 | 9,634,862 | ||||||
5.50%, 01/25/23(a) | 18,015 | 17,850,941 | ||||||
5.88%, 03/25/21 | 11,855 | 12,088,247 | ||||||
5.88%, 10/25/24(a) | 8,648 | 8,324,901 | ||||||
6.13%, 03/25/24(a) | 14,811 | 14,490,610 | ||||||
6.50%, 06/15/22(a) | 18,856 | 19,401,645 | ||||||
6.63%, 07/26/21(a) | 14,153 | 14,634,202 | ||||||
6.75%, 06/25/25(a) | 8,034 | 7,867,278 | ||||||
6.75%, 06/15/26 | 9,445 | 9,102,619 | ||||||
7.25%, 01/25/22(a) | 14,319 | 15,024,695 | ||||||
7.25%, 09/25/23 | 10,048 | 10,410,657 | ||||||
8.00%, 03/25/20(a) | 16,017 | 16,659,194 |
Security | Par (000) | Value | ||||||
Diversified Financial Services (continued) | ||||||||
Quicken Loans Inc. | ||||||||
5.25%, 01/15/28 (Call 01/15/23)(a)(b) | $ | 18,252 | $ | 16,609,320 | ||||
5.75%, 05/01/25 (Call 05/01/20)(a)(b) | 23,054 | 22,840,750 | ||||||
Springleaf Finance Corp. | ||||||||
5.25%, 12/15/19 | 370 | 376,207 | ||||||
5.63%, 03/15/23(a) | 14,750 | 15,009,188 | ||||||
6.13%, 05/15/22(a) | 18,362 | 19,105,308 | ||||||
6.13%, 03/15/24 (Call 09/15/23)(a) | 12,986 | 13,132,092 | ||||||
6.88%, 03/15/25(a) | 22,832 | 23,399,508 | ||||||
7.13%, 03/15/26(a) | 29,101 | 29,470,824 | ||||||
7.75%, 10/01/21(a) | 12,128 | 13,034,988 | ||||||
8.25%, 12/15/20(a) | 18,945 | 20,324,518 | ||||||
|
| |||||||
627,528,742 | ||||||||
Electric — 2.5% | ||||||||
AES Corp./VA | ||||||||
4.00%, 03/15/21 | 10,337 | 10,354,619 | ||||||
4.50%, 03/15/23 (Call 03/15/20)(a) | 9,788 | 9,861,410 | ||||||
4.88%, 05/15/23 (Call 04/01/19)(a) | 11,467 | 11,592,420 | ||||||
5.13%, 09/01/27 (Call 09/01/22)(a) | 9,642 | 9,907,155 | ||||||
5.50%, 04/15/25 (Call 04/15/20)(a) | 11,268 | 11,620,444 | ||||||
6.00%, 05/15/26 (Call 05/15/21)(a) | 9,468 | 10,011,753 | ||||||
Calpine Corp. | ||||||||
5.25%, 06/01/26 (Call 06/01/21)(a)(b) | 22,026 | 21,585,480 | ||||||
5.38%, 01/15/23 (Call 04/01/19)(a) | 21,465 | 21,226,202 | ||||||
5.50%, 02/01/24 (Call 04/01/19)(a) | 12,620 | 12,146,750 | ||||||
5.75%, 01/15/25 (Call 10/15/19)(a) | 28,441 | 27,242,761 | ||||||
5.88%, 01/15/24 (Call 04/01/19)(a)(b) | 10,127 | 10,350,744 | ||||||
6.00%, 01/15/22 (Call 04/01/19)(a)(b) | 14,901 | 15,154,007 | ||||||
Clearway Energy Operating LLC | ||||||||
5.38%, 08/15/24 (Call 08/15/19) | 9,951 | 9,783,077 | ||||||
5.75%, 10/15/25 (Call 10/15/21)(a)(b) | 11,919 | 11,710,418 | ||||||
NextEra Energy Operating Partners LP | ||||||||
4.25%, 09/15/24 (Call 07/15/24)(a)(b) | 9,827 | 9,655,028 | ||||||
4.50%, 09/15/27 (Call 06/15/27)(b) | 9,496 | 9,044,940 | ||||||
NRG Energy Inc. | ||||||||
5.75%, 01/15/28 (Call 01/15/23)(a) | 15,326 | 15,728,307 | ||||||
6.25%, 05/01/24 (Call 05/01/19) | 14,107 | 14,600,745 | ||||||
6.63%, 01/15/27 (Call 07/15/21)(a) | 24,494 | 26,109,073 | ||||||
7.25%, 05/15/26 (Call 05/15/21)(a) | 18,810 | 20,356,182 | ||||||
Talen Energy Supply LLC | ||||||||
6.50%, 06/01/25 (Call 06/01/20)(a) | 11,993 | 10,629,396 | ||||||
9.50%, 07/15/22 (Call 07/15/20)(a)(b) | 6,048 | 6,482,700 | ||||||
10.50%, 01/15/26 (Call 01/15/22)(a)(b) | 12,114 | 12,652,099 | ||||||
Vistra Energy Corp. | ||||||||
5.88%, 06/01/23 (Call 04/01/19)(a) | 8,608 | 8,841,582 | ||||||
7.38%, 11/01/22 (Call 04/01/19) | 232 | 240,741 | ||||||
7.63%, 11/01/24 (Call 11/01/19) | 17,257 | 18,340,465 | ||||||
Vistra Operations Co. LLC | ||||||||
5.50%, 09/01/26 (Call 09/01/21)(a)(b) | 17,338 | 17,988,175 | ||||||
5.63%, 02/15/27 (Call 02/15/22)(a)(b) | 19,017 | 19,587,510 | ||||||
|
| |||||||
382,804,183 | ||||||||
Electrical Components & Equipment — 0.2% | ||||||||
Energizer Holdings Inc. | ||||||||
5.50%, 06/15/25 (Call 06/15/20)(a)(b) | 8,532 | 8,333,808 | ||||||
6.38%, 07/15/26 (Call 07/15/21)(a)(b) | 7,606 | 7,669,582 | ||||||
7.75%, 01/15/27 (Call 01/15/22)(a)(b) | 10,612 | 11,291,831 | ||||||
|
| |||||||
27,295,221 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electronics — 0.2% | ||||||||
Sensata Technologies BV | ||||||||
4.88%, 10/15/23(a)(b) | $ | 9,626 | $ | 9,916,785 | ||||
5.00%, 10/01/25(b) | 12,962 | 13,157,443 | ||||||
5.63%, 11/01/24(a)(b) | 5,648 | 5,918,801 | ||||||
|
| |||||||
28,993,029 | ||||||||
Energy – Alternate Sources — 0.1% | ||||||||
TerraForm Power Operating LLC | ||||||||
4.25%, 01/31/23 (Call 10/31/22)(a)(b) | 8,677 | 8,579,384 | ||||||
5.00%, 01/31/28 (Call 07/31/27)(a)(b) | 12,852 | 12,209,400 | ||||||
|
| |||||||
20,788,784 | ||||||||
Engineering & Construction — 0.3% | ||||||||
AECOM | ||||||||
5.13%, 03/15/27 (Call 12/15/26)(a) | 17,926 | 16,984,885 | ||||||
5.88%, 10/15/24 (Call 07/15/24)(a) | 16,308 | 17,036,175 | ||||||
Brand Industrial Services Inc., 8.50%, 07/15/25 (Call 07/15/20)(a)(b) | 17,999 | 16,256,753 | ||||||
|
| |||||||
50,277,813 | ||||||||
Entertainment — 1.9% | ||||||||
AMC Entertainment Holdings Inc. | ||||||||
5.75%, 06/15/25 (Call 06/15/20)(a) | 10,908 | 10,063,908 | ||||||
5.88%, 11/15/26 (Call 11/15/21)(a) | 11,379 | 10,242,238 | ||||||
6.13%, 05/15/27 (Call 05/15/22)(a) | 8,804 | 7,917,792 | ||||||
Caesars Resort Collection LLC/CRC Finco Inc., 5.25%, 10/15/25 (Call 10/15/20)(a)(b) | 32,316 | 30,639,607 | ||||||
Cinemark USA Inc. | ||||||||
4.88%, 06/01/23 (Call 04/01/19)(a) | 14,808 | 14,864,512 | ||||||
5.13%, 12/15/22 (Call 04/01/19)(a) | 5,472 | 5,554,080 | ||||||
Eldorado Resorts Inc. | ||||||||
6.00%, 04/01/25 (Call 04/01/20)(a) | 18,266 | 18,587,482 | ||||||
6.00%, 09/15/26 (Call 09/15/21)(a)(b) | 9,732 | 9,902,310 | ||||||
International Game Technology PLC | ||||||||
6.25%, 02/15/22 (Call 08/15/21)(b) | 26,672 | 28,072,280 | ||||||
6.25%, 01/15/27 (Call 07/15/26)(a)(b) | 12,642 | 13,145,670 | ||||||
6.50%, 02/15/25 (Call 08/15/24)(a)(b) | 20,239 | 21,554,535 | ||||||
Scientific Games International Inc. | ||||||||
5.00%, 10/15/25 (Call 10/15/20)(b) | 24,475 | 23,740,750 | ||||||
10.00%, 12/01/22 (Call 04/01/19)(a) | 41,993 | 44,250,124 | ||||||
Six Flags Entertainment Corp. | ||||||||
4.88%, 07/31/24 (Call 07/31/19)(b) | 17,813 | 17,545,805 | ||||||
5.50%, 04/15/27 (Call 04/15/22)(a)(b) | 10,784 | 10,599,492 | ||||||
Stars Group Holdings BV/Stars Group US Co-Borrower LLC, 7.00%, 07/15/26 (Call 07/15/21)(a)(b) | 19,171 | 19,602,348 | ||||||
|
| |||||||
286,282,933 | ||||||||
Environmental Control — 0.3% | ||||||||
Covanta Holding Corp. | ||||||||
5.88%, 03/01/24 (Call 04/01/19)(a) | 4,750 | 4,850,937 | ||||||
5.88%, 07/01/25 (Call 07/01/20) | 7,905 | 7,903,024 | ||||||
6.00%, 01/01/27 (Call 01/01/22)(a) | 8,172 | 8,156,637 | ||||||
GFL Environmental Inc., 5.38%, 03/01/23 (Call 03/01/20)(a)(b) | 8,817 | 8,315,533 | ||||||
Hulk Finance Corp., 7.00%, 06/01/26 (Call 06/01/21)(a)(b) | 6,687 | 6,341,784 | ||||||
Tervita Escrow Corp., 7.63%, 12/01/21 (Call 04/01/19)(a)(b) | 3,232 | 3,207,760 | ||||||
|
| |||||||
38,775,675 |
Security | Par (000) | Value | ||||||
Food — 2.1% | ||||||||
Albertsons Companies LLC/Safeway Inc./New Albertson’s LP/Albertson’s LLC | ||||||||
5.75%, 03/15/25 (Call 09/15/19)(a) | $ | 23,432 | $ | 22,294,290 | ||||
6.63%, 06/15/24 (Call 06/15/19) | 23,239 | 23,268,049 | ||||||
7.50%, 03/15/26 (Call 03/15/22)(b) | 4,678 | 4,815,416 | ||||||
B&G Foods Inc. | ||||||||
4.63%, 06/01/21 (Call 04/01/19)(a) | 14,126 | 14,121,586 | ||||||
5.25%, 04/01/25 (Call 04/01/20)(a) | 18,414 | 17,585,370 | ||||||
JBS Investments GmbH | ||||||||
6.25%, 02/05/23 (Call 04/01/19)(b) | 13,034 | 13,200,044 | ||||||
7.25%, 04/03/24 (Call 04/03/19)(a)(b) | 12,849 | 13,295,995 | ||||||
JBS USA LUX SA/JBS USA Finance Inc. | ||||||||
5.75%, 06/15/25 (Call 06/15/20)(a)(b) | 16,098 | 16,299,225 | ||||||
5.88%, 07/15/24 (Call 07/15/19)(a)(b) | 12,690 | 13,045,320 | ||||||
6.75%, 02/15/28 (Call 02/15/23)(a)(b) | 18,513 | 19,160,955 | ||||||
Lamb Weston Holdings Inc. | ||||||||
4.63%, 11/01/24 (Call 11/01/21)(a)(b) | 15,802 | 15,855,614 | ||||||
4.88%, 11/01/26 (Call 11/01/21)(a)(b) | 16,892 | 16,934,230 | ||||||
Pilgrim’s Pride Corp. | ||||||||
5.75%, 03/15/25 (Call 03/15/20)(a)(b) | 17,779 | 17,751,220 | ||||||
5.88%, 09/30/27 (Call 09/30/22)(a)(b) | 17,089 | 16,789,942 | ||||||
Post Holdings Inc. | ||||||||
5.00%, 08/15/26 (Call 08/15/21)(a)(b) | 31,514 | 30,244,301 | ||||||
5.50%, 03/01/25 (Call 03/01/20)(a)(b) | 19,143 | 19,232,534 | ||||||
5.63%, 01/15/28 (Call 12/01/22)(a)(b) | 17,815 | 17,303,932 | ||||||
5.75%, 03/01/27 (Call 03/01/22)(a)(b) | 24,283 | 23,953,446 | ||||||
|
| |||||||
315,151,469 | ||||||||
Food Service — 0.4% | ||||||||
Aramark Services Inc. | ||||||||
4.75%, 06/01/26 (Call 06/01/21)(a) | 8,545 | 8,491,233 | ||||||
5.00%, 04/01/25 (Call 04/01/20)(a)(b) | 10,408 | 10,590,140 | ||||||
5.00%, 02/01/28 (Call 02/01/23)(a)(b) | 22,033 | 21,757,588 | ||||||
5.13%, 01/15/24 (Call 04/01/19) | 16,724 | 17,122,501 | ||||||
|
| |||||||
57,961,462 | ||||||||
Gas — 0.4% | ||||||||
AmeriGas Partners LP/AmeriGas Finance Corp. | ||||||||
5.50%, 05/20/25 (Call 02/20/25)(a) | 12,547 | 12,463,092 | ||||||
5.63%, 05/20/24 (Call 03/20/24)(a) | 13,252 | 13,351,390 | ||||||
5.75%, 05/20/27 (Call 02/20/27)(a) | 9,363 | 9,200,903 | ||||||
5.88%, 08/20/26 (Call 05/20/26)(a) | 12,538 | 12,567,633 | ||||||
NGL Energy Partners LP/NGL Energy Finance Corp., 7.50%, 11/01/23 (Call 11/01/19) | 11,842 | 12,196,050 | ||||||
|
| |||||||
59,779,068 | ||||||||
Hand & Machine Tools — 0.1% | ||||||||
Colfax Corp. | ||||||||
6.00%, 02/15/24 (Call 02/15/21)(a)(b) | 10,936 | 11,322,041 | ||||||
6.38%, 02/15/26 (Call 02/15/22)(b) | 5,000 | 5,212,500 | ||||||
|
| |||||||
16,534,541 | ||||||||
Health Care – Products — 1.4% | ||||||||
Avantor Inc. | ||||||||
6.00%, 10/01/24 (Call 10/01/20)(b) | 28,443 | 29,047,414 | ||||||
9.00%, 10/01/25 (Call 10/01/20)(a)(b) | 37,041 | 39,717,001 | ||||||
Hologic Inc. | ||||||||
4.38%, 10/15/25 (Call 10/15/20)(a)(b) | 18,259 | 17,985,115 | ||||||
4.63%, 02/01/28 (Call 02/01/23)(a)(b) | 7,943 | 7,713,811 | ||||||
Kinetic Concepts Inc./KCI USA Inc. | ||||||||
7.88%, 02/15/21 (Call 03/18/19)(a)(b) | 12,026 | 12,304,853 | ||||||
12.50%, 11/01/21 (Call 05/01/19)(b) | 8,769 | 9,472,347 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Products (continued) | ||||||||
Mallinckrodt International Finance SA, 4.75%, 04/15/23(a) | $ | 6,394 | $ | 5,202,851 | ||||
Mallinckrodt International Finance SA/Mallinckrodt CB LLC | ||||||||
4.88%, 04/15/20 (Call 04/01/19)(a)(b) | 9,046 | 9,001,675 | ||||||
5.50%, 04/15/25 (Call 04/15/20)(a)(b) | 12,902 | 10,495,003 | ||||||
5.63%, 10/15/23 (Call 04/01/19)(a)(b) | 14,173 | 12,361,549 | ||||||
5.75%, 08/01/22 (Call 04/01/19)(a)(b) | 16,347 | 15,387,295 | ||||||
Ortho-Clinical Diagnostics Inc./Ortho-Clinical Diagnostics SA, 6.63%, 05/15/22 (Call 04/01/19)(b) | 24,745 | 23,815,914 | ||||||
Teleflex Inc. | ||||||||
4.63%, 11/15/27 (Call 11/15/22)(a) | 9,834 | 9,766,346 | ||||||
4.88%, 06/01/26 (Call 06/01/21) | 7,873 | 7,971,412 | ||||||
|
| |||||||
210,242,586 | ||||||||
Health Care – Services — 7.0% | ||||||||
Acadia Healthcare Co. Inc., 5.63%, 02/15/23 (Call 04/01/19)(a) | 12,212 | 12,124,226 | ||||||
Centene Corp. | ||||||||
4.75%, 05/15/22 (Call 05/15/19) | 18,272 | 18,604,404 | ||||||
4.75%, 01/15/25 (Call 01/15/20) | 22,485 | 22,656,761 | ||||||
5.38%, 06/01/26 (Call 06/01/21)(a)(b) | 33,875 | 35,187,656 | ||||||
5.63%, 02/15/21 (Call 04/01/19)(a) | 19,948 | 20,243,230 | ||||||
6.13%, 02/15/24 (Call 04/01/19)(a) | 17,951 | 18,757,192 | ||||||
CHS/Community Health Systems Inc. | ||||||||
5.13%, 08/01/21 (Call 04/01/19)(a) | 18,033 | 17,672,340 | ||||||
6.25%, 03/31/23 (Call 03/31/20) | 57,038 | 54,970,372 | ||||||
6.88%, 02/01/22 (Call 04/01/19)(a) | 35,171 | 23,037,005 | ||||||
8.00%, 03/15/26(b) | 15,900 | 15,690,597 | ||||||
8.13%, 06/30/24 (Call 06/30/21)(a)(b) | 27,094 | 22,602,991 | ||||||
8.63%, 01/15/24 (Call 01/15/21)(a)(b) | 20,442 | 21,055,260 | ||||||
11.00%, 06/30/23 (Call 06/30/20)(a)(b)(f) | 31,460 | 28,853,539 | ||||||
DaVita Inc. | ||||||||
5.00%, 05/01/25 (Call 05/01/20)(a) | 29,080 | 28,062,200 | ||||||
5.13%, 07/15/24 (Call 07/15/19)(a) | 31,783 | 31,504,899 | ||||||
5.75%, 08/15/22 (Call 04/01/19)(a) | 23,759 | 24,247,247 | ||||||
Encompass Health Corp., 5.75%, 11/01/24 (Call 04/01/19)(a) | 23,767 | 24,011,800 | ||||||
Envision Healthcare Corp., 8.75%, 10/15/26 (Call 10/15/21)(a)(b) | 22,215 | 20,049,038 | ||||||
HCA Healthcare Inc., 6.25%, 02/15/21(a) | 16,054 | 16,794,431 | ||||||
HCA Inc. | ||||||||
4.50%, 02/15/27 (Call 08/15/26)(a) | 3,257 | 3,285,194 | ||||||
4.75%, 05/01/23(a) | 4,397 | 4,557,041 | ||||||
5.00%, 03/15/24(a) | 1,885 | 1,969,216 | ||||||
5.25%, 04/15/25 | 3,130 | 3,312,968 | ||||||
5.25%, 06/15/26 (Call 12/15/25)(a) | 2,859 | 3,015,322 | ||||||
5.38%, 02/01/25(a) | 44,948 | 46,556,298 | ||||||
5.38%, 09/01/26 (Call 03/01/26) | 15,946 | 16,368,459 | ||||||
5.63%, 09/01/28 (Call 03/01/28) | 28,290 | 29,333,194 | ||||||
5.88%, 03/15/22(a) | 4,516 | 4,804,525 | ||||||
5.88%, 05/01/23(a) | 22,446 | 23,736,645 | ||||||
5.88%, 02/15/26 (Call 08/15/25)(a) | 22,773 | 24,039,748 | ||||||
5.88%, 02/01/29 (Call 08/01/28)(a) | 13,028 | 13,652,259 | ||||||
6.50%, 02/15/20(a) | 7,190 | 7,405,121 | ||||||
7.50%, 02/15/22(a) | 34,463 | 37,780,064 | ||||||
MEDNAX Inc. | ||||||||
5.25%, 12/01/23 (Call 04/01/19)(a)(b) | 14,311 | 14,471,999 | ||||||
6.25%, 01/15/27 (Call 01/15/22)(a)(b) | 13,679 | 13,747,395 | ||||||
Molina Healthcare Inc., 5.38%, 11/15/22 (Call 08/15/22)(a) | 13,504 | 13,947,100 |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
MPH Acquisition Holdings LLC, 7.13%, 06/01/24 (Call 06/01/19)(a)(b) | $ | 29,779 | $ | 29,833,129 | ||||
RegionalCare Hospital Partners Holdings Inc., 8.25%, 05/01/23 (Call 05/01/19)(b) | 15,662 | 16,746,327 | ||||||
RegionalCare Hospital Partners Holdings Inc./LifePoint Health Inc., 9.75%, 12/01/26 (Call 12/01/21)(a)(b) | 26,517 | 27,246,218 | ||||||
Tenet Healthcare Corp. | ||||||||
4.38%, 10/01/21(a) | 19,058 | 19,343,870 | ||||||
4.50%, 04/01/21(a) | 14,635 | 14,836,231 | ||||||
4.63%, 07/15/24 (Call 07/15/20)(a) | 34,378 | 34,292,055 | ||||||
4.75%, 06/01/20(a) | 5,161 | 5,230,901 | ||||||
5.13%, 05/01/25 (Call 05/01/20) | 26,481 | 26,271,202 | ||||||
6.00%, 10/01/20 | 31,886 | 32,922,295 | ||||||
6.25%, 02/01/27 (Call 02/01/22)(b) | 15,898 | 16,404,749 | ||||||
6.75%, 06/15/23(a) | 35,264 | 36,145,600 | ||||||
7.00%, 08/01/25 (Call 08/01/20)(a) | 9,489 | 9,512,723 | ||||||
8.13%, 04/01/22(a) | 53,577 | 57,193,447 | ||||||
WellCare Health Plans Inc. | ||||||||
5.25%, 04/01/25 (Call 04/01/20) | 23,055 | 23,538,002 | ||||||
5.38%, 08/15/26 (Call 08/15/21)(a)(b) | 13,639 | 14,014,073 | ||||||
|
| |||||||
1,081,638,558 | ||||||||
Home Builders — 1.6% | ||||||||
Beazer Homes USA Inc. | ||||||||
5.88%, 10/15/27 (Call 10/15/22)(a) | 7,238 | 6,315,155 | ||||||
8.75%, 03/15/22 (Call 03/18/19) | 9,800 | 10,200,422 | ||||||
Brookfield Residential Properties Inc., 6.50%, 12/15/20 (Call 04/01/19)(a)(b) | 7,264 | 7,298,446 | ||||||
Brookfield Residential Properties Inc./Brookfield Residential U.S. Corp., 6.13%, 07/01/22 (Call 04/01/19)(a)(b) | 10,712 | 10,685,220 | ||||||
K Hovnanian Enterprises Inc. | ||||||||
10.00%, 07/15/22 (Call 07/15/19)(b) | 6,831 | 5,452,846 | ||||||
10.50%, 07/15/24 (Call 07/15/20)(b) | 6,411 | 4,469,669 | ||||||
KB Home, 7.00%, 12/15/21 (Call 09/15/21)(a) | 9,075 | 9,632,734 | ||||||
Lennar Corp. | ||||||||
4.13%, 01/15/22 (Call 10/15/21)(a) | 10,946 | 10,948,566 | ||||||
4.50%, 04/30/24 (Call 01/31/24)(a) | 12,398 | 12,333,685 | ||||||
4.75%, 04/01/21 (Call 02/01/21) | 8,919 | 9,097,380 | ||||||
4.75%, 11/15/22 (Call 08/15/22)(a) | 11,001 | 11,231,333 | ||||||
4.75%, 05/30/25 (Call 02/28/25)(a) | 8,840 | 8,881,437 | ||||||
4.75%, 11/29/27 (Call 05/29/27)(a) | 15,235 | 14,777,950 | ||||||
4.88%, 12/15/23 (Call 09/15/23)(a) | 8,757 | 8,918,457 | ||||||
5.88%, 11/15/24 (Call 05/15/24)(a) | 9,138 | 9,615,004 | ||||||
Meritage Homes Corp., 6.00%, 06/01/25 (Call 03/01/25)(a) | 6,772 | 6,989,974 | ||||||
PulteGroup Inc. | ||||||||
4.25%, 03/01/21 (Call 02/01/21)(a) | 12,439 | 12,531,861 | ||||||
5.00%, 01/15/27 (Call 10/15/26) | 13,260 | 12,769,853 | ||||||
5.50%, 03/01/26 (Call 12/01/25) | 11,934 | 12,023,505 | ||||||
Taylor Morrison Communities Inc., 6.63%, 05/15/22 (Call 05/15/19)(a) | 5,101 | 5,241,278 | ||||||
Taylor Morrison Communities Inc./Taylor Morrison Holdings II Inc., 5.25%, 04/15/21 (Call 04/01/19)(b) | 8,219 | 8,237,713 | ||||||
Toll Brothers Finance Corp. | ||||||||
4.35%, 02/15/28 (Call 11/15/27)(a) | 7,614 | 7,194,041 | ||||||
4.38%, 04/15/23 (Call 01/15/23) | 9,638 | 9,644,024 | ||||||
4.88%, 03/15/27 (Call 12/15/26)(a) | 7,238 | 7,093,240 | ||||||
5.88%, 02/15/22 (Call 11/15/21)(a) | 9,166 | 9,624,300 | ||||||
TRI Pointe Group Inc./TRI Pointe Homes Inc., 5.88%, 06/15/24(a) | 8,344 | 8,174,512 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Home Builders (continued) | ||||||||
William Lyon Homes Inc., 5.88%, 01/31/25 (Call 01/31/20)(a) | $ | 7,543 | $ | 6,812,272 | ||||
|
| |||||||
246,194,877 | ||||||||
Home Furnishings — 0.1% | ||||||||
Tempur Sealy International Inc. | ||||||||
5.50%, 06/15/26 (Call 06/15/21)(a) | 12,225 | 12,225,000 | ||||||
5.63%, 10/15/23 (Call 04/01/19)(a) | 8,074 | 8,154,993 | ||||||
|
| |||||||
20,379,993 | ||||||||
Household Products & Wares — 0.4% | ||||||||
Kronos Acquisition Holdings Inc., 9.00%, 08/15/23 (Call 04/01/19)(a)(b) | 16,908 | 14,518,864 | ||||||
Prestige Brands Inc. | ||||||||
5.38%, 12/15/21 (Call 04/01/19)(a)(b) | 7,130 | 7,161,229 | ||||||
6.38%, 03/01/24 (Call 04/01/19)(a)(b) | 12,055 | 12,115,275 | ||||||
Spectrum Brands Inc. | ||||||||
5.75%, 07/15/25 (Call 07/15/20)(a) | 18,964 | 18,561,015 | ||||||
6.63%, 11/15/22 (Call 04/01/19)(a) | 8,234 | 8,435,780 | ||||||
|
| |||||||
60,792,163 | ||||||||
Insurance — 0.6% | ||||||||
Acrisure LLC/Acrisure Finance Inc. | ||||||||
7.00%, 11/15/25 (Call 11/15/20)(a)(b) | 17,926 | 15,830,092 | ||||||
8.13%, 02/15/24 (Call 02/15/21)(b) | 13,875 | 14,204,531 | ||||||
Genworth Holdings Inc., 7.63%, 09/24/21 | 14,711 | 14,390,300 | ||||||
HUB International Ltd., 7.00%, 05/01/26 (Call 05/01/21)(a)(b) | 24,136 | 23,668,365 | ||||||
Radian Group Inc., 4.50%, 10/01/24 (Call 07/01/24) | 9,219 | 8,969,800 | ||||||
Voya Financial Inc., 5.65%, 05/15/53 (Call 05/15/23)(a)(c)(d) | 12,600 | 12,472,740 | ||||||
|
| |||||||
89,535,828 | ||||||||
Internet — 2.0% | ||||||||
Match Group Inc., 5.00%, 12/15/27 (Call 12/15/22)(b) | 8,500 | 8,417,380 | ||||||
Netflix Inc. | ||||||||
4.38%, 11/15/26(a) | 18,231 | 17,536,034 | ||||||
4.88%, 04/15/28 | 29,831 | 29,061,921 | ||||||
5.38%, 02/01/21(a) | 9,508 | 9,828,895 | ||||||
5.50%, 02/15/22(a) | 13,184 | 13,810,240 | ||||||
5.75%, 03/01/24(a) | 7,687 | 8,124,599 | ||||||
5.88%, 02/15/25(a) | 15,331 | 16,261,240 | ||||||
5.88%, 11/15/28(a)(b) | 34,967 | 36,419,879 | ||||||
6.38%, 05/15/29(a)(b) | 14,591 | 15,524,428 | ||||||
Symantec Corp. | ||||||||
3.95%, 06/15/22 (Call 03/15/22)(a) | 8,474 | 8,433,837 | ||||||
4.20%, 09/15/20(a) | 15,446 | 15,615,597 | ||||||
5.00%, 04/15/25 (Call 04/15/20)(a)(b) | 21,851 | 21,769,059 | ||||||
VeriSign Inc. | ||||||||
4.63%, 05/01/23 (Call 04/01/19) | 10,193 | 10,339,808 | ||||||
4.75%, 07/15/27 (Call 07/15/22) | 11,063 | 10,956,980 | ||||||
5.25%, 04/01/25 (Call 01/01/25)(a) | 6,916 | 7,177,632 | ||||||
Zayo Group LLC/Zayo Capital Inc. | ||||||||
5.75%, 01/15/27 (Call 01/15/22)(b) | 29,894 | 29,015,864 | ||||||
6.00%, 04/01/23 (Call 04/01/19)(a) | 26,132 | 26,413,737 | ||||||
6.38%, 05/15/25 (Call 05/15/20)(a) | 17,512 | 17,380,660 | ||||||
|
| |||||||
302,087,790 | ||||||||
Iron & Steel — 0.8% | ||||||||
AK Steel Corp. | ||||||||
7.00%, 03/15/27 (Call 03/15/22)(a) | 6,902 | 5,814,935 | ||||||
7.63%, 10/01/21 (Call 04/01/19) | 6,900 | 6,948,947 |
Security | Par (000) | Value | ||||||
Iron & Steel (continued) | ||||||||
Allegheny Technologies Inc. | ||||||||
5.95%, 01/15/21 (Call 10/15/20) | $ | 9,602 | $ | 9,845,551 | ||||
7.88%, 08/15/23 (Call 05/15/23)(a) | 9,963 | 10,875,528 | ||||||
Cleveland-Cliffs Inc. | ||||||||
4.88%, 01/15/24 (Call 01/15/21)(a)(b) | 7,826 | 7,808,147 | ||||||
5.75%, 03/01/25 (Call 03/01/20) | 20,876 | 20,404,115 | ||||||
Steel Dynamics Inc. | ||||||||
5.00%, 12/15/26 (Call 12/15/21)(a) | 8,048 | 8,200,576 | ||||||
5.13%, 10/01/21 (Call 04/01/19)(a) | 13,265 | 13,356,197 | ||||||
5.25%, 04/15/23 (Call 04/01/19) | 8,041 | 8,182,974 | ||||||
5.50%, 10/01/24 (Call 10/01/19)(a) | 8,943 | 9,188,933 | ||||||
U.S. Steel Corp. | ||||||||
6.25%, 03/15/26 (Call 03/15/21) | 12,248 | 11,620,290 | ||||||
6.88%, 08/15/25 (Call 08/15/20)(a) | 14,553 | 14,379,173 | ||||||
|
| |||||||
126,625,366 | ||||||||
Leisure Time — 0.3% | ||||||||
Sabre GLBL Inc. | ||||||||
5.25%, 11/15/23 (Call 04/01/19)(b) | 9,692 | 9,939,492 | ||||||
5.38%, 04/15/23 (Call 04/01/19)(a)(b) | 10,724 | 10,960,077 | ||||||
Viking Cruises Ltd., 5.88%, 09/15/27 (Call 09/15/22)(b) | 15,544 | 14,974,053 | ||||||
VOC Escrow Ltd., 5.00%, 02/15/28 (Call 02/15/23)(a)(b) | 12,170 | 11,875,530 | ||||||
|
| |||||||
47,749,152 | ||||||||
Lodging — 2.4% | ||||||||
Boyd Gaming Corp. | ||||||||
6.00%, 08/15/26 (Call 08/15/21)(a) | 13,625 | 14,008,203 | ||||||
6.38%, 04/01/26 (Call 04/01/21)(a) | 14,747 | 15,379,114 | ||||||
6.88%, 05/15/23 (Call 03/18/19)(a) | 15,618 | 16,320,810 | ||||||
Diamond Resorts International Inc. | ||||||||
7.75%, 09/01/23 (Call 09/01/19)(a)(b) | 9,932 | 9,981,660 | ||||||
10.75%, 09/01/24 (Call 09/01/19)(a)(b) | 11,251 | 10,716,577 | ||||||
Hilton Domestic Operating Co. Inc. | ||||||||
4.25%, 09/01/24 (Call 09/01/19)(a) | 19,329 | 19,031,817 | ||||||
5.13%, 05/01/26 (Call 05/01/21)(a)(b) | 27,933 | 28,087,213 | ||||||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. | ||||||||
4.63%, 04/01/25 (Call 04/01/20)(a) | 16,083 | 16,013,195 | ||||||
4.88%, 04/01/27 (Call 04/01/22)(a) | 11,973 | 11,898,584 | ||||||
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., 6.75%, 11/15/21 (Call 04/01/19)(a)(b) | 14,846 | 15,298,803 | ||||||
MGM Resorts International | ||||||||
4.63%, 09/01/26 (Call 06/01/26) | 8,439 | 8,017,050 | ||||||
5.25%, 03/31/20(a) | 4,865 | 4,946,083 | ||||||
5.75%, 06/15/25 (Call 03/15/25)(a) | 18,920 | 19,289,801 | ||||||
6.00%, 03/15/23(a) | 23,231 | 24,305,434 | ||||||
6.63%, 12/15/21(a) | 23,600 | 25,135,919 | ||||||
6.75%, 10/01/20(a) | 18,580 | 19,424,545 | ||||||
7.75%, 03/15/22 | 19,528 | 21,431,980 | ||||||
Wyndham Destinations Inc. | ||||||||
3.90%, 03/01/23 (Call 12/01/22) | 5,878 | 5,718,526 | ||||||
4.25%, 03/01/22 (Call 12/01/21) | 12,434 | 12,425,970 | ||||||
5.75%, 04/01/27 (Call 01/01/27) | 7,144 | 7,074,346 | ||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. | ||||||||
4.25%, 05/30/23 (Call 02/28/23)(b) | 10,056 | 9,945,803 | ||||||
5.25%, 05/15/27 (Call 02/15/27)(b) | 17,439 | 16,725,091 | ||||||
5.50%, 03/01/25 (Call 12/01/24)(b) | 31,995 | 31,844,623 | ||||||
|
| |||||||
363,021,147 | ||||||||
Machinery — 0.1% | ||||||||
Vertiv Group Corp., 9.25%, 10/15/24 (Call 10/15/19)(a)(b) | 13,219 | 13,219,000 | ||||||
|
|
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Media — 11.9% | ||||||||
Altice Financing SA | ||||||||
6.63%, 02/15/23 (Call 04/01/19)(a)(b) | $ | 36,695 | $ | 37,584,612 | ||||
7.50%, 05/15/26 (Call 05/15/21)(b) | 50,641 | 48,995,167 | ||||||
Altice Finco SA, 8.13%, 01/15/24 (Call 04/01/19)(b) | 6,726 | 6,795,171 | ||||||
Altice France SA/France | ||||||||
6.25%, 05/15/24 (Call 05/15/19)(a)(b) | 24,923 | 24,923,000 | ||||||
7.38%, 05/01/26 (Call 05/01/21)(a)(b) | 93,903 | 92,142,319 | ||||||
8.13%, 02/01/27 (Call 02/01/22)(b) | 31,698 | 31,825,359 | ||||||
Altice Luxembourg SA | ||||||||
7.63%, 02/15/25 (Call 02/15/20)(a)(b) | 26,962 | 23,895,073 | ||||||
7.75%, 05/15/22 (Call 04/01/19)(a)(b) | 51,437 | 51,115,519 | ||||||
AMC Networks Inc. | ||||||||
4.75%, 12/15/22 (Call 04/01/19)(a) | 12,231 | 12,377,772 | ||||||
4.75%, 08/01/25 (Call 08/01/21)(a) | 14,871 | 14,410,928 | ||||||
5.00%, 04/01/24 (Call 04/01/20)(a) | 19,445 | 19,303,347 | ||||||
Cablevision Systems Corp. | ||||||||
5.88%, 09/15/22(a) | 13,848 | 14,311,043 | ||||||
8.00%, 04/15/20(a) | 5,381 | 5,622,024 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | ||||||||
4.00%, 03/01/23 (Call 11/01/19)(a)(b) | 8,825 | 8,714,688 | ||||||
5.00%, 02/01/28 (Call 08/01/22)(a)(b) | 45,987 | 44,291,229 | ||||||
5.13%, 02/15/23 (Call 04/01/19)(a) | 13,048 | 13,260,030 | ||||||
5.13%, 05/01/23 (Call 04/01/19)(a)(b) | 19,397 | 19,738,387 | ||||||
5.13%, 05/01/27 (Call 05/01/22)(a)(b) | 59,446 | 58,579,277 | ||||||
5.25%, 03/15/21 (Call 04/01/19)(a) | 5,906 | 5,932,531 | ||||||
5.25%, 09/30/22 (Call 04/01/19)(a) | 20,754 | 21,141,517 | ||||||
5.38%, 05/01/25 (Call 05/01/20)(a)(b) | 13,301 | 13,633,525 | ||||||
5.50%, 05/01/26 (Call 05/01/21)(a)(b) | 26,651 | 27,206,218 | ||||||
5.75%, 09/01/23 (Call 04/01/19)(a) | 8,148 | 8,311,979 | ||||||
5.75%, 01/15/24 (Call 04/01/19) | 14,631 | 15,017,921 | ||||||
5.75%, 02/15/26 (Call 02/15/21)(a)(b) | 44,110 | 45,516,006 | ||||||
5.88%, 04/01/24 (Call 04/01/19)(a)(b) | 26,466 | 27,584,189 | ||||||
5.88%, 05/01/27 (Call 05/01/21)(a)(b) | 13,815 | 14,190,595 | ||||||
Clear Channel Worldwide Holdings Inc. | ||||||||
9.25%, 02/15/24 (Call 02/15/21)(a)(b) | 18,770 | 19,695,932 | ||||||
6.50%, 11/15/22 (Call 04/01/19)(a) | 36,360 | 37,231,935 | ||||||
Series B, 7.63%, 03/15/20 (Call 03/06/19)(a) | 22,811 | 22,839,514 | ||||||
CSC Holdings LLC | ||||||||
5.13%, 12/15/21 (Call 03/11/19)(b) | 20,312 | 20,375,780 | ||||||
5.25%, 06/01/24 | 13,532 | 13,451,269 | ||||||
5.38%, 07/15/23 (Call 03/11/19)(a)(b) | 20,800 | 21,315,451 | ||||||
5.38%, 02/01/28 (Call 02/01/23)(a)(b) | 17,315 | 17,023,642 | ||||||
5.50%, 05/15/26 (Call 05/15/21)(a)(b) | 26,037 | 26,320,618 | ||||||
5.50%, 04/15/27 (Call 04/15/22)(a)(b) | 23,434 | 23,568,258 | ||||||
6.50%, 02/01/29 (Call 02/01/24)(a)(b) | 25,966 | 27,167,187 | ||||||
6.63%, 10/15/25 (Call 10/15/20)(a)(b) | 18,049 | 19,127,357 | ||||||
6.75%, 11/15/21(a) | 18,991 | 20,240,676 | ||||||
7.50%, 04/01/28 (Call 04/01/23)(b) | 19,803 | 20,947,419 | ||||||
7.75%, 07/15/25 (Call 07/15/20)(a)(b) | 10,422 | 11,130,370 | ||||||
10.88%, 10/15/25 (Call 10/15/20)(b) | 30,892 | 35,834,720 | ||||||
DISH DBS Corp. | ||||||||
5.00%, 03/15/23(a) | 27,485 | 24,332,814 | ||||||
5.13%, 05/01/20(a) | 15,128 | 15,254,531 | ||||||
5.88%, 07/15/22(a) | 36,765 | 35,110,575 | ||||||
5.88%, 11/15/24(a) | 36,307 | 30,577,755 | ||||||
6.75%, 06/01/21(a) | 36,497 | 37,318,182 | ||||||
7.75%, 07/01/26(a) | 37,568 | 32,590,240 | ||||||
Gray Television Inc. | ||||||||
5.13%, 10/15/24 (Call 10/15/19)(a)(b) | 9,379 | 9,350,863 | ||||||
5.88%, 07/15/26 (Call 07/15/21)(a)(b) | 14,131 | 14,296,598 |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
7.00%, 05/15/27 (Call 05/15/22)(b) | $ | 13,496 | $ | 14,272,020 | ||||
Meredith Corp., 6.88%, 02/01/26 | 25,640 | 26,480,992 | ||||||
Nexstar Broadcasting Inc. | ||||||||
5.63%, 08/01/24 (Call 08/01/19)(a)(b) | 17,220 | 17,090,850 | ||||||
5.88%, 11/15/22 (Call 03/11/19) | 8,871 | 9,084,458 | ||||||
Quebecor Media Inc., 5.75%, 01/15/23(a) | 16,383 | 17,012,722 | ||||||
Sinclair Television Group Inc. | ||||||||
5.13%, 02/15/27 (Call 08/15/21)(b) | 7,727 | 7,244,063 | ||||||
5.38%, 04/01/21 (Call 03/18/19)(a) | 9,417 | 9,428,771 | ||||||
5.63%, 08/01/24 (Call 08/01/19)(a)(b) | 10,254 | 10,343,723 | ||||||
6.13%, 10/01/22 (Call 03/18/19)(a) | 10,126 | 10,350,797 | ||||||
Sirius XM Radio Inc. | ||||||||
3.88%, 08/01/22 (Call 08/01/20)(a)(b) | 18,890 | 18,819,163 | ||||||
4.63%, 05/15/23 (Call 04/01/19)(a)(b) | 9,736 | 9,857,700 | ||||||
5.00%, 08/01/27 (Call 08/01/22)(a)(b) | 28,484 | 27,794,451 | ||||||
5.38%, 04/15/25 (Call 04/15/20)(b) | 19,464 | 19,854,901 | ||||||
5.38%, 07/15/26 (Call 07/15/21)(a)(b) | 17,865 | 17,931,994 | ||||||
6.00%, 07/15/24 (Call 07/15/19)(a)(b) | 28,676 | 29,760,311 | ||||||
TEGNA Inc. | ||||||||
5.13%, 07/15/20 (Call 04/01/19)(a) | 6,953 | 7,028,117 | ||||||
6.38%, 10/15/23 (Call 04/01/19)(a) | 13,757 | 14,204,103 | ||||||
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28 (Call 12/01/22)(b) | 14,800 | 14,274,600 | ||||||
Tribune Media Co., 5.88%, 07/15/22 (Call 03/11/19)(a) | 22,820 | 23,257,635 | ||||||
Unitymedia GmbH, 6.13%, 01/15/25 (Call 01/15/20)(a)(b) | 15,879 | 16,456,202 | ||||||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 5.00%, 01/15/25 (Call 01/15/20)(a)(b) | 9,006 | 9,239,893 | ||||||
Univision Communications Inc. | ||||||||
5.13%, 05/15/23 (Call 04/01/19)(a)(b) | 21,867 | 19,926,304 | ||||||
5.13%, 02/15/25 (Call 02/15/20)(a)(b) | 28,068 | 24,624,407 | ||||||
UPC Holding BV, 5.50%, 01/15/28 (Call 10/15/22)(b) | 11,525 | 11,705,021 | ||||||
UPCB Finance IV Ltd., 5.38%, 01/15/25 (Call 01/15/20)(a)(b) | 20,005 | 20,455,113 | ||||||
Viacom Inc. | ||||||||
5.88%, 02/28/57 (Call 02/28/22)(a)(c)(d) | 12,719 | 12,568,955 | ||||||
6.25%, 02/28/57 (Call 02/28/27)(c)(d) | 11,772 | 11,631,030 | ||||||
Videotron Ltd. | ||||||||
5.00%, 07/15/22(a) | 15,207 | 15,636,843 | ||||||
5.13%, 04/15/27 (Call 04/15/22)(a)(b) | 11,960 | 12,195,047 | ||||||
5.38%, 06/15/24 (Call 03/15/24)(a)(b) | 11,253 | 11,682,302 | ||||||
Virgin Media Finance PLC | ||||||||
5.75%, 01/15/25 (Call 01/15/20)(a)(b) | 5,991 | 5,961,045 | ||||||
6.00%, 10/15/24 (Call 10/15/19)(a)(b) | 8,325 | 8,582,034 | ||||||
Virgin Media Secured Finance PLC | ||||||||
5.25%, 01/15/21(a) | 7,732 | 7,835,093 | ||||||
5.25%, 01/15/26 (Call 01/15/20)(a)(b) | 16,267 | 16,289,367 | ||||||
5.50%, 01/15/25 (Call 03/15/19)(a)(b) | 6,890 | 6,999,080 | ||||||
5.50%, 08/15/26 (Call 08/15/21)(a)(b) | 13,578 | 13,667,106 | ||||||
Ziggo Bond Co. BV | ||||||||
5.88%, 01/15/25 (Call 01/15/20)(a)(b) | 6,245 | 6,062,958 | ||||||
6.00%, 01/15/27 (Call 01/15/22)(a)(b) | 11,304 | 10,684,635 | ||||||
Ziggo BV, 5.50%, 01/15/27 | 37,013 | 35,717,545 | ||||||
|
| |||||||
1,823,532,463 | ||||||||
Metal Fabricate & Hardware — 0.3% | ||||||||
Novelis Corp. | ||||||||
5.88%, 09/30/26 (Call 09/30/21)(a)(b) | 27,671 | 26,910,048 | ||||||
6.25%, 08/15/24 (Call 08/15/19)(a)(b) | 21,564 | 21,744,262 | ||||||
|
| |||||||
48,654,310 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Mining — 1.5% | ||||||||
Alcoa Nederland Holding BV | ||||||||
6.13%, 05/15/28 (Call 05/15/23)(a)(b) | $ | 8,800 | $ | 8,992,544 | ||||
6.75%, 09/30/24 (Call 09/30/19)(a)(b) | 13,782 | 14,601,300 | ||||||
7.00%, 09/30/26 (Call 09/30/21)(a)(b) | 8,020 | 8,621,688 | ||||||
Constellium NV | ||||||||
5.75%, 05/15/24 (Call 05/15/19)(a)(b) | 7,103 | 6,966,977 | ||||||
5.88%, 02/15/26 (Call 11/15/20)(a)(b) | 8,892 | 8,655,210 | ||||||
6.63%, 03/01/25 (Call 03/01/20)(a)(b) | 12,924 | 13,029,007 | ||||||
FMG Resources August 2006 Pty Ltd. | ||||||||
4.75%, 05/15/22 (Call 02/15/22)(a)(b) | 15,425 | 15,427,931 | ||||||
5.13%, 03/15/23 (Call 12/15/22)(b) | 9,922 | 9,900,296 | ||||||
5.13%, 05/15/24 (Call 02/15/24)(a)(b) | 13,845 | 13,730,347 | ||||||
Freeport-McMoRan Inc. | ||||||||
3.10%, 03/15/20 | 9,805 | 9,816,276 | ||||||
3.55%, 03/01/22 (Call 12/01/21)(a) | 35,540 | 35,140,175 | ||||||
3.88%, 03/15/23 (Call 12/15/22)(a) | 35,396 | 34,882,050 | ||||||
4.00%, 11/14/21 | 11,609 | 11,609,605 | ||||||
4.55%, 11/14/24 (Call 08/14/24) | 17,430 | 17,255,700 | ||||||
6.88%, 02/15/23 (Call 02/15/20)(a) | 13,376 | 14,124,917 | ||||||
Teck Resources Ltd., 8.50%, 06/01/24 (Call 06/01/19)(b) | 11,561 | 12,413,624 | ||||||
|
| |||||||
235,167,647 | ||||||||
Office & Business Equipment — 0.4% | ||||||||
CDW LLC/CDW Finance Corp. | ||||||||
5.00%, 09/01/23 (Call 04/01/19)(a) | 7,040 | 7,119,200 | ||||||
5.00%, 09/01/25 (Call 03/01/20)(a) | 11,282 | 11,400,584 | ||||||
5.50%, 12/01/24 (Call 06/01/24)(a) | 10,571 | 11,056,055 | ||||||
Pitney Bowes Inc. | ||||||||
3.88%, 10/01/21 (Call 09/01/21) | 11,240 | 10,913,337 | ||||||
4.38%, 05/15/22 (Call 04/15/22) | 7,972 | 7,596,652 | ||||||
4.63%, 03/15/24 (Call 12/15/23)(a) | 7,335 | 6,779,207 | ||||||
4.70%, 04/01/23 (Call 03/01/23) | 7,737 | 7,311,465 | ||||||
|
| |||||||
62,176,500 | ||||||||
Oil & Gas — 9.4% | ||||||||
Antero Resources Corp. | ||||||||
5.00%, 03/01/25 (Call 03/01/20)(a) | 12,255 | 11,764,800 | ||||||
5.13%, 12/01/22 (Call 04/01/19)(a) | 20,731 | 20,750,566 | ||||||
5.38%, 11/01/21 (Call 04/01/19)(a) | 17,946 | 18,009,091 | ||||||
5.63%, 06/01/23 (Call 04/01/19)(a) | 13,441 | 13,474,602 | ||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp. | ||||||||
7.00%, 11/01/26 (Call 11/01/21)(b) | 11,286 | 10,931,196 | ||||||
10.00%, 04/01/22 (Call 04/01/20)(a)(b) | 18,807 | 20,296,377 | ||||||
California Resources Corp., 8.00%, 12/15/22 (Call 04/01/19)(a)(b) | 40,236 | 31,967,502 | ||||||
Callon Petroleum Co. | ||||||||
6.13%, 10/01/24 (Call 10/01/19)(a) | 11,066 | 11,228,916 | ||||||
6.38%, 07/01/26 (Call 07/01/21)(a) | 7,548 | 7,602,691 | ||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 6.50%, 04/15/21 (Call 04/01/19)(a) | 17,741 | 16,521,306 | ||||||
Chesapeake Energy Corp. | ||||||||
4.88%, 04/15/22 (Call 04/01/19)(a) | 7,621 | 7,382,844 | ||||||
6.13%, 02/15/21(a) | 8,143 | 8,311,204 | ||||||
6.63%, 08/15/20 | 4,038 | 4,147,783 | ||||||
7.00%, 10/01/24 (Call 04/01/21)(a) | 15,078 | 14,908,372 | ||||||
7.50%, 10/01/26 (Call 10/01/21)(a) | 7,425 | 7,313,625 | ||||||
8.00%, 01/15/25 (Call 01/15/20)(a) | 24,568 | 24,997,940 | ||||||
8.00%, 06/15/27 (Call 06/15/22)(a) | 24,513 | 24,267,870 | ||||||
Citgo Holding Inc., 10.75%, 02/15/20(b) | 9,369 | 9,636,895 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
CNX Resources Corp., 5.88%, 04/15/22 (Call 04/01/19)(a) | $ | 23,988 | $ | 24,182,902 | ||||
Continental Resources Inc./OK | ||||||||
3.80%, 06/01/24 (Call 03/01/24) | 19,646 | 19,410,769 | ||||||
4.38%, 01/15/28 (Call 10/15/27)(a) | 19,032 | 18,973,408 | ||||||
4.50%, 04/15/23 (Call 01/15/23) | 28,726 | 29,338,519 | ||||||
5.00%, 09/15/22 (Call 04/01/19)(a) | 23,100 | 23,326,380 | ||||||
CrownRock LP/CrownRock Finance Inc., 5.63%, 10/15/25 (Call 10/15/20)(a)(b) | 22,645 | 21,909,037 | ||||||
Denbury Resources Inc. | ||||||||
7.50%, 02/15/24 (Call 08/15/20)(b) | 8,017 | 7,155,173 | ||||||
9.00%, 05/15/21 (Call 04/01/19)(a)(b) | 11,365 | 11,464,444 | ||||||
9.25%, 03/31/22 (Call 04/01/19)(a)(b) | 9,142 | 9,202,471 | ||||||
Diamond Offshore Drilling Inc., 7.88%, 08/15/25 (Call 05/15/25) | 9,747 | 9,168,272 | ||||||
Diamondback Energy Inc. | ||||||||
4.75%, 11/01/24 (Call 11/01/19) | 10,076 | 10,209,821 | ||||||
5.38%, 05/31/25 (Call 05/31/20) | 15,388 | 15,926,580 | ||||||
Endeavor Energy Resources LP/EER Finance Inc. | ||||||||
5.50%, 01/30/26 (Call 01/30/21)(b) | 10,466 | 10,867,820 | ||||||
5.75%, 01/30/28 (Call 01/30/23)(b) | 10,102 | 10,770,626 | ||||||
Ensco PLC | ||||||||
4.50%, 10/01/24 (Call 07/01/24)(a) | 12,227 | 9,376,581 | ||||||
5.20%, 03/15/25 (Call 12/15/24)(a) | 12,980 | 10,046,520 | ||||||
7.75%, 02/01/26 (Call 11/01/25) | 18,508 | 15,546,720 | ||||||
EP Energy LLC/Everest Acquisition Finance Inc. | ||||||||
7.75%, 05/15/26 (Call 05/15/21)(a)(b) | 19,823 | 17,543,355 | ||||||
8.00%, 11/29/24 (Call 11/30/19)(a)(b) | 12,230 | 8,673,746 | ||||||
8.00%, 02/15/25 (Call 02/15/20)(a)(b) | 11,755 | 5,201,588 | ||||||
9.38%, 05/01/24 (Call 05/01/20)(b) | 12,158 | 5,744,655 | ||||||
Extraction Oil & Gas Inc. | ||||||||
5.63%, 02/01/26 (Call 02/01/21)(a)(b) | 14,329 | 11,986,607 | ||||||
7.38%, 05/15/24 (Call 05/15/20)(a)(b) | 8,042 | 7,127,223 | ||||||
Gulfport Energy Corp. | ||||||||
6.00%, 10/15/24 (Call 10/15/19)(a) | 10,843 | 9,840,023 | ||||||
6.38%, 05/15/25 (Call 05/15/20)(a) | 13,169 | 11,870,276 | ||||||
6.38%, 01/15/26 (Call 01/15/21) | 7,355 | 6,457,461 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | ||||||||
5.00%, 12/01/24 (Call 06/01/19)(a)(b) | 10,563 | 10,153,684 | ||||||
5.75%, 10/01/25 (Call 04/01/20)(b) | 8,558 | 8,487,575 | ||||||
6.25%, 11/01/28 (Call 11/01/23)(a)(b) | 10,493 | 10,323,426 | ||||||
Jones Energy Holdings LLC/Jones Energy Finance Corp. | ||||||||
6.75%, 04/01/22 (Call 04/01/19) | 3,743 | 183,407 | ||||||
9.25%, 03/15/23 (Call 03/15/20)(a)(b) | 6,189 | 3,996,740 | ||||||
Matador Resources Co., 5.88%, 09/15/26 (Call 09/15/21)(a) | 20,641 | 20,589,397 | ||||||
MEG Energy Corp. | ||||||||
6.38%, 01/30/23 (Call 04/01/19)(b) | 14,898 | 13,646,568 | ||||||
6.50%, 01/15/25 (Call 01/15/20)(b) | 14,848 | 14,676,706 | ||||||
7.00%, 03/31/24 (Call 04/01/19)(a)(b) | 18,131 | 16,589,865 | ||||||
Murphy Oil Corp. | ||||||||
4.00%, 06/01/22 (Call 03/01/22) | 8,428 | 8,344,159 | ||||||
4.45%, 12/01/22 (Call 09/01/22) | 11,809 | 11,701,981 | ||||||
5.75%, 08/15/25 (Call 08/15/20)(a) | 10,202 | 10,377,347 | ||||||
6.88%, 08/15/24 (Call 08/15/19)(a) | 9,180 | 9,670,556 | ||||||
Nabors Industries Inc. | ||||||||
4.63%, 09/15/21 | 13,519 | 13,233,834 | ||||||
5.00%, 09/15/20(a) | 12,756 | 12,821,927 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
5.50%, 01/15/23 (Call 11/15/22)(a) | $ | 11,258 | $ | 10,587,933 | ||||
5.75%, 02/01/25 (Call 11/01/24) | 14,647 | 12,962,595 | ||||||
Newfield Exploration Co. | ||||||||
5.38%, 01/01/26 (Call 10/01/25)(a) | 9,800 | 10,339,000 | ||||||
5.63%, 07/01/24(a) | 9,226 | 9,859,230 | ||||||
5.75%, 01/30/22 | 13,859 | 14,586,597 | ||||||
Noble Holding International Ltd. | ||||||||
7.75%, 01/15/24 (Call 10/15/23)(a) | 15,210 | 13,696,130 | ||||||
7.88%, 02/01/26 (Call 02/01/21)(b) | 14,458 | 13,518,230 | ||||||
7.95%, 04/01/25 (Call 01/01/25)(a) | 9,162 | 8,057,979 | ||||||
Oasis Petroleum Inc. | ||||||||
6.25%, 05/01/26 (Call 05/01/21)(a)(b) | 8,265 | 7,856,916 | ||||||
6.88%, 03/15/22 (Call 04/01/19) | 17,455 | 17,477,910 | ||||||
Pacific Drilling SA, 8.38%, 10/01/23 (Call 10/01/20)(b) | 14,946 | 15,026,067 | ||||||
Parsley Energy LLC/Parsley Finance Corp. | ||||||||
5.25%, 08/15/25 (Call 08/15/20)(b) | 6,425 | 6,354,987 | ||||||
5.38%, 01/15/25 (Call 01/15/20)(a)(b) | 10,900 | 10,818,250 | ||||||
5.63%, 10/15/27 (Call 10/15/22)(a)(b) | 12,142 | 11,990,225 | ||||||
6.25%, 06/01/24 (Call 06/01/19)(b) | 8,350 | 8,578,538 | ||||||
PBF Holding Co. LLC/PBF Finance Corp. | ||||||||
7.00%, 11/15/23 (Call 04/01/19) | 9,388 | 9,631,958 | ||||||
7.25%, 06/15/25 (Call 06/15/20)(a) | 14,471 | 14,801,573 | ||||||
PDC Energy Inc. | ||||||||
5.75%, 05/15/26 (Call 05/15/21)(a) | 10,380 | 10,007,896 | ||||||
6.13%, 09/15/24 (Call 09/15/19)(a) | 7,542 | 7,473,314 | ||||||
Precision Drilling Corp., 7.13%, 01/15/26 (Call 11/15/20)(b) | 6,841 | 6,726,841 | ||||||
Puma International Financing SA | ||||||||
5.00%, 01/24/26 (Call 01/24/21)(b) | 10,802 | 9,221,308 | ||||||
5.13%, 10/06/24 (Call 10/06/20)(b) | 9,769 | 8,660,219 | ||||||
QEP Resources Inc. | ||||||||
5.25%, 05/01/23 (Call 02/01/23) | 12,485 | 12,048,025 | ||||||
5.38%, 10/01/22 (Call 07/01/22)(a) | 8,428 | 8,317,235 | ||||||
5.63%, 03/01/26 (Call 12/01/25)(a) | 8,736 | 8,209,452 | ||||||
Range Resources Corp. | ||||||||
4.88%, 05/15/25 (Call 02/15/25)(a) | 13,267 | 12,172,473 | ||||||
5.00%, 08/15/22 (Call 05/15/22)(a) | 10,268 | 10,126,815 | ||||||
5.00%, 03/15/23 (Call 12/15/22)(a) | 14,107 | 13,592,683 | ||||||
5.75%, 06/01/21 (Call 03/01/21)(a) | 8,371 | 8,503,977 | ||||||
Rowan Companies Inc. | ||||||||
4.88%, 06/01/22 (Call 03/01/22) | 12,331 | 11,460,123 | ||||||
7.38%, 06/15/25 (Call 03/15/25)(a) | 9,722 | 8,469,533 | ||||||
Sable Permian Resources Land LLC/AEPB Finance Corp. | ||||||||
7.13%, 11/01/20 (Call 04/01/19)(a)(b) | 6,625 | 2,282,076 | ||||||
7.38%, 11/01/21 (Call 04/01/19)(a)(b) | 5,555 | 1,890,436 | ||||||
13.00%, 11/30/20 (Call 04/01/19)(b) | 8,867 | 9,133,934 | ||||||
Sanchez Energy Corp. | ||||||||
6.13%, 01/15/23 (Call 04/01/19) | 13,269 | 1,957,178 | ||||||
7.25%, 02/15/23 (Call 02/15/20)(a)(b) | 6,913 | 5,971,104 | ||||||
7.75%, 06/15/21 (Call 04/01/19)(a) | 5,596 | 909,350 | ||||||
Seven Generations Energy Ltd. | ||||||||
5.38%, 09/30/25 (Call 09/30/20)(a)(b) | 13,623 | 13,210,904 | ||||||
6.75%, 05/01/23 (Call 04/01/19)(b) | 6,957 | 7,129,838 | ||||||
6.88%, 06/30/23 (Call 04/01/19)(a)(b) | 7,837 | 8,028,376 | ||||||
SM Energy Co. | ||||||||
5.00%, 01/15/24 (Call 04/01/19)(a) | 10,473 | 9,857,711 | ||||||
5.63%, 06/01/25 (Call 06/01/20)(a) | 9,532 | 8,945,186 | ||||||
6.13%, 11/15/22 (Call 04/01/19) | 8,555 | 8,555,000 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
6.63%, 01/15/27 (Call 01/15/22)(a) | $ | 8,700 | $ | 8,308,500 | ||||
6.75%, 09/15/26 (Call 09/15/21)(a) | 9,102 | 8,737,920 | ||||||
Southwestern Energy Co. | ||||||||
6.20%, 01/23/25 (Call 10/23/24)(a) | 18,189 | 18,001,653 | ||||||
7.50%, 04/01/26 (Call 04/01/21) | 10,286 | 10,683,573 | ||||||
7.75%, 10/01/27 (Call 10/01/22)(a) | 8,937 | 9,283,541 | ||||||
Sunoco LP/Sunoco Finance Corp. | ||||||||
4.88%, 01/15/23 (Call 01/15/20) | 19,696 | 19,962,455 | ||||||
5.50%, 02/15/26 (Call 02/15/21) | 14,530 | 14,444,232 | ||||||
Series WI, 5.88%, 03/15/28 | 6,032 | 5,941,520 | ||||||
Transocean Guardian Ltd., 5.88%, 01/15/24 (Call 07/15/21)(b) | 10,654 | 10,813,739 | ||||||
Transocean Inc. | ||||||||
7.25%, 11/01/25 (Call 11/01/21)(b) | 15,944 | 15,212,284 | ||||||
7.50%, 01/15/26 (Call 01/15/21)(a)(b) | 14,112 | 13,617,198 | ||||||
9.00%, 07/15/23 (Call 07/15/20)(b) | 19,998 | 21,121,548 | ||||||
Transocean Pontus Ltd., 6.13%, 08/01/25 (Call 08/01/21)(b) | 9,035 | 9,131,143 | ||||||
Transocean Poseidon Ltd., 6.88%, 02/01/27 (Call 02/01/22)(a)(b) | 10,023 | 10,298,633 | ||||||
Whiting Petroleum Corp. | ||||||||
5.75%, 03/15/21 (Call 12/15/20)(a) | 17,433 | 17,650,912 | ||||||
6.25%, 04/01/23 (Call 01/01/23)(a) | 7,839 | 7,871,118 | ||||||
6.63%, 01/15/26 (Call 10/15/25)(a) | 19,181 | 18,797,380 | ||||||
WPX Energy Inc. | ||||||||
5.25%, 09/15/24 (Call 06/15/24) | 10,610 | 10,619,517 | ||||||
5.75%, 06/01/26 (Call 06/01/21) | 9,693 | 9,761,045 | ||||||
6.00%, 01/15/22 (Call 10/15/21) | 10,028 | 10,353,910 | ||||||
8.25%, 08/01/23 (Call 06/01/23) | 8,883 | 9,964,690 | ||||||
|
| |||||||
1,439,213,345 | ||||||||
Oil & Gas Services — 0.6% | ||||||||
KCA Deutag UK Finance PLC | ||||||||
9.63%, 04/01/23 (Call 04/01/20)(b) | 6,043 | 4,590,372 | ||||||
9.88%, 04/01/22 (Call 04/01/20)(a)(b) | 7,611 | 6,079,551 | ||||||
SESI LLC | ||||||||
7.13%, 12/15/21 (Call 04/01/19) | 16,034 | 14,843,618 | ||||||
7.75%, 09/15/24 (Call 09/15/20)(a) | 8,484 | 7,248,849 | ||||||
Transocean Phoenix 2 Ltd., 7.75%, 10/15/24 (Call 10/15/20)(a)(b) | 7,495 | 7,891,626 | ||||||
Transocean Proteus Ltd., 6.25%, 12/01/24 (Call 12/01/20)(a)(b) | 7,352 | 7,519,143 | ||||||
USA Compression Partners LP/USA Compression Finance Corp., 6.88%, 09/01/27 (Call 09/01/22)(b) | 5,510 | 5,620,200 | ||||||
Weatherford International LLC, 9.88%, 03/01/25 (Call 12/01/24)(a) | 9,920 | 7,068,000 | ||||||
Weatherford International Ltd. | ||||||||
4.50%, 04/15/22 (Call 01/15/22)(a) | 12,608 | 8,668,000 | ||||||
7.75%, 06/15/21 (Call 05/15/21)(a) | 12,896 | 11,531,174 | ||||||
8.25%, 06/15/23 (Call 03/15/23)(a) | 11,678 | 8,320,575 | ||||||
9.88%, 02/15/24 (Call 11/15/23)(a) | 14,174 | 10,205,280 | ||||||
|
| |||||||
99,586,388 | ||||||||
Packaging & Containers — 3.1% | ||||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. | ||||||||
4.25%, 09/15/22 (Call 03/15/19)(a)(b) | 11,270 | 11,249,714 | ||||||
4.63%, 05/15/23 (Call 05/15/19)(a)(b) | 19,796 | 19,951,707 | ||||||
6.00%, 02/15/25 (Call 02/15/20)(a)(b) | 31,361 | 30,870,407 | ||||||
7.25%, 05/15/24 (Call 05/15/19)(a)(b) | 31,257 | 32,536,974 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Packaging & Containers (continued) | ||||||||
Ball Corp. | ||||||||
4.00%, 11/15/23(a) | $ | 18,934 | $ | 18,991,478 | ||||
4.38%, 12/15/20(a) | 14,892 | 15,171,225 | ||||||
4.88%, 03/15/26 (Call 12/15/25)(a) | 13,512 | 13,782,240 | ||||||
5.00%, 03/15/22 | 13,485 | 14,024,400 | ||||||
5.25%, 07/01/25 | 19,142 | 20,063,209 | ||||||
Berry Global Inc. | ||||||||
4.50%, 02/15/26 (Call 02/15/21)(a)(b) | 9,034 | 8,548,423 | ||||||
5.13%, 07/15/23 (Call 04/01/19)(a) | 13,830 | 13,881,863 | ||||||
5.50%, 05/15/22 (Call 04/01/19)(a) | 9,234 | 9,374,433 | ||||||
6.00%, 10/15/22 (Call 04/01/19) | 6,756 | 6,940,735 | ||||||
BWAY Holding Co. | ||||||||
5.50%, 04/15/24 (Call 04/15/20)(a)(b) | 28,432 | 28,032,530 | ||||||
7.25%, 04/15/25 (Call 04/15/20)(a)(b) | 23,888 | 22,634,890 | ||||||
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 01/15/23(a) | 19,259 | 19,505,515 | ||||||
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 09/30/26 (Call 03/31/26)(a) | 7,409 | 7,121,011 | ||||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 02/01/26 (Call 02/01/21)(a) | 16,800 | 16,842,000 | ||||||
Flex Acquisition Co. Inc. | ||||||||
6.88%, 01/15/25 (Call 01/15/20)(a)(b) | 9,553 | 9,004,556 | ||||||
7.88%, 07/15/26 (Call 07/15/21)(b) | 10,103 | 9,689,058 | ||||||
Owens-Brockway Glass Container Inc. | ||||||||
5.00%, 01/15/22(a)(b) | 7,743 | 7,897,376 | ||||||
5.88%, 08/15/23(b) | 12,331 | 12,959,634 | ||||||
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu | ||||||||
5.13%, 07/15/23 (Call 07/15/19)(a)(b) | 30,719 | 30,719,000 | ||||||
5.75%, 10/15/20 (Call 04/01/19) | 40,535 | 40,636,206 | ||||||
7.00%, 07/15/24 (Call 07/15/19)(a)(b) | 15,630 | 15,981,675 | ||||||
Sealed Air Corp. | ||||||||
4.88%, 12/01/22 (Call 09/01/22)(a)(b) | 7,080 | 7,223,472 | ||||||
5.13%, 12/01/24 (Call 09/01/24)(a)(b) | 8,297 | 8,532,946 | ||||||
5.25%, 04/01/23 (Call 01/01/23)(a)(b) | 8,296 | 8,566,160 | ||||||
5.50%, 09/15/25 (Call 06/15/25)(a)(b) | 6,797 | 7,086,838 | ||||||
6.50%, 12/01/20 (Call 09/01/20)(a)(b) | 5,539 | 5,785,010 | ||||||
|
| |||||||
473,604,685 | ||||||||
Pharmaceuticals — 4.0% | ||||||||
Bausch Health Americas Inc. | ||||||||
8.50%, 01/31/27 (Call 07/31/22)(b) | 17,556 | 18,214,350 | ||||||
9.25%, 04/01/26 (Call 04/01/22)(a)(b) | 28,048 | 30,193,119 | ||||||
Bausch Health Companies Inc. | ||||||||
5.50%, 03/01/23 (Call 04/01/19)(b) | 16,881 | 16,838,798 | ||||||
5.50%, 11/01/25 (Call 11/01/20)(a)(b) | 28,374 | 28,605,129 | ||||||
5.63%, 12/01/21 (Call 04/01/19)(b) | 12,264 | 12,282,396 | ||||||
5.75%, 08/15/27 (Call 08/15/22)(b) | 1,425 | 1,437,469 | ||||||
5.88%, 05/15/23 (Call 04/01/19)(a)(b) | 56,751 | 56,609,122 | ||||||
6.13%, 04/15/25 (Call 04/15/20)(a)(b) | 56,866 | 54,662,442 | ||||||
6.50%, 03/15/22 (Call 04/01/19)(a)(b) | 21,305 | 22,077,306 | ||||||
7.00%, 03/15/24 (Call 03/15/20)(a)(b) | 37,135 | 39,139,176 | ||||||
9.00%, 12/15/25 (Call 12/15/21)(a)(b) | 26,938 | 28,857,332 | ||||||
Elanco Animal Health Inc. | ||||||||
3.91%, 08/27/21(b) | 7,997 | 8,052,708 | ||||||
4.27%, 08/28/23 (Call 07/28/23)(b) | 14,384 | 14,634,086 | ||||||
4.90%, 08/28/28 (Call 05/28/28)(a)(b) | 14,199 | 14,728,891 | ||||||
Endo Dac/Endo Finance LLC/Endo Finco Inc. | ||||||||
6.00%, 07/15/23 (Call 04/01/19)(b) | 29,875 | 24,623,537 | ||||||
6.00%, 02/01/25 (Call 02/01/20)(a)(b) | 20,120 | 15,537,111 |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Endo Finance LLC, 5.75%, 01/15/22 (Call 04/01/19)(a)(b) | $ | 13,339 | $ | 12,471,965 | ||||
Endo Finance LLC/Endo Finco Inc., 5.38%, 01/15/23 (Call 04/01/19)(a)(b) | 15,107 | 12,406,624 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | ||||||||
2.20%, 07/21/21(a) | 55,059 | 52,260,103 | ||||||
2.80%, 07/21/23(a) | 55,121 | 49,927,643 | ||||||
3.15%, 10/01/26(a) | 64,921 | 53,965,581 | ||||||
6.00%, 04/15/24 (Call 01/15/24)(a) | 23,083 | 23,441,941 | ||||||
6.75%, 03/01/28 (Call 12/01/27)(a) | 22,192 | 22,805,487 | ||||||
|
| |||||||
613,772,316 | ||||||||
Pipelines — 3.9% | ||||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. | ||||||||
5.38%, 09/15/24 (Call 09/15/19) | 3,100 | 3,100,000 | ||||||
5.75%, 03/01/27 (Call 03/01/22)(b) | 11,795 | 11,883,462 | ||||||
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.13%, 11/15/22 (Call 04/01/19)(a)(b) | 17,364 | 17,639,964 | ||||||
Buckeye Partners LP, 6.38%, 01/22/78 (Call 01/22/23)(a)(c)(d) | 7,271 | 6,324,760 | ||||||
Cheniere Corpus Christi Holdings LLC | ||||||||
5.13%, 06/30/27 (Call 01/01/27)(a) | 27,265 | 27,810,300 | ||||||
5.88%, 03/31/25 (Call 10/02/24)(a) | 27,411 | 29,158,479 | ||||||
7.00%, 06/30/24 (Call 01/01/24)(a) | 23,976 | 26,630,098 | ||||||
Cheniere Energy Partners LP | ||||||||
5.25%, 10/01/25 (Call 10/01/20)(a) | 26,498 | 26,849,666 | ||||||
5.63%, 10/01/26 (Call 10/01/21)(b) | 21,101 | 21,496,644 | ||||||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. | ||||||||
5.75%, 04/01/25 (Call 04/01/20)(a) | 7,888 | 7,939,765 | ||||||
6.25%, 04/01/23 (Call 03/18/19)(a) | 11,811 | 12,125,960 | ||||||
DCP Midstream Operating LP | ||||||||
3.88%, 03/15/23 (Call 12/15/22) | 11,143 | 11,083,803 | ||||||
4.75%, 09/30/21 (Call 06/30/21)(a)(b) | 9,640 | 9,836,415 | ||||||
5.35%, 03/15/20(a)(b) | 5,701 | 5,813,924 | ||||||
5.38%, 07/15/25 (Call 04/15/25)(a) | 15,725 | 16,354,000 | ||||||
5.85%, 05/21/43 (Call 05/21/23)(b)(c)(d) | 7,983 | 7,137,999 | ||||||
Energy Transfer LP | ||||||||
4.25%, 03/15/23 (Call 12/15/22)(a) | 18,432 | 18,670,680 | ||||||
5.50%, 06/01/27 (Call 03/01/27) | 19,702 | 20,656,371 | ||||||
5.88%, 01/15/24 (Call 10/15/23)(a) | 23,503 | 25,242,504 | ||||||
7.50%, 10/15/20 | 19,139 | 20,335,187 | ||||||
EnLink Midstream Partners LP | ||||||||
4.15%, 06/01/25 (Call 03/01/25) | 13,433 | 12,829,915 | ||||||
4.40%, 04/01/24 (Call 01/01/24)(a) | 10,167 | 9,911,237 | ||||||
4.85%, 07/15/26 (Call 04/15/26) | 5,700 | 5,586,000 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. | ||||||||
6.00%, 05/15/23 (Call 04/01/19) | 6,934 | 6,908,215 | ||||||
6.25%, 05/15/26 (Call 02/15/21)(a) | 8,181 | 7,591,895 | ||||||
6.50%, 10/01/25 (Call 10/01/20) | 9,631 | 9,235,829 | ||||||
6.75%, 08/01/22 (Call 04/01/19) | 15,115 | 15,429,109 | ||||||
NGPL PipeCo LLC | ||||||||
4.38%, 08/15/22 (Call 05/15/22)(a)(b) | 13,360 | 13,534,849 | ||||||
4.88%, 08/15/27 (Call 02/15/27)(a)(b) | 13,089 | 13,199,438 | ||||||
NuStar Logistics LP | ||||||||
4.80%, 09/01/20 | 8,086 | 8,204,298 | ||||||
5.63%, 04/28/27 (Call 01/28/27)(a) | 11,061 | 11,135,662 | ||||||
Rockies Express Pipeline LLC, 5.63%, 04/15/20(a)(b) | 447 | 455,940 | ||||||
SemGroup Corp./Rose Rock Finance Corp., 5.63%, 07/15/22 (Call 03/18/19)(a) | 7,148 | 6,958,450 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. | ||||||||
4.75%, 10/01/23 (Call 10/01/20)(b) | $ | 10,615 | $ | 10,633,245 | ||||
5.50%, 09/15/24 (Call 09/15/19)(a)(b) | 14,975 | 15,316,430 | ||||||
5.50%, 01/15/28 (Call 01/15/23)(b) | 14,710 | 14,673,225 | ||||||
Targa Resources Partners LP/Targa Resources | ||||||||
Partners Finance Corp. | ||||||||
4.25%, 11/15/23 (Call 04/01/19) | 11,069 | 10,932,368 | ||||||
5.00%, 01/15/28 (Call 01/15/23) | 14,502 | 14,048,812 | ||||||
5.13%, 02/01/25 (Call 02/01/20)(a) | 9,643 | 9,770,386 | ||||||
5.25%, 05/01/23 (Call 04/01/19) | 10,339 | 10,468,134 | ||||||
5.38%, 02/01/27 (Call 02/01/22)(a) | 9,195 | 9,264,054 | ||||||
5.88%, 04/15/26 (Call 04/15/21)(a)(b) | 18,635 | 19,409,843 | ||||||
6.50%, 07/15/27 (Call 07/15/22)(b) | 12,359 | 13,068,355 | ||||||
6.75%, 03/15/24 (Call 09/15/19)(a) | 11,529 | 12,077,895 | ||||||
6.88%, 01/15/29 (Call 01/15/24)(b) | 14,099 | 15,050,682 | ||||||
|
| |||||||
601,784,247 | ||||||||
Real Estate — 0.4% | ||||||||
Howard Hughes Corp. (The), 5.38%, 03/15/25 (Call 03/15/20)(a)(b) | 19,980 | 19,730,250 | ||||||
Kennedy-Wilson Inc., 5.88%, 04/01/24 (Call 04/01/19)(a) | 22,722 | 22,293,595 | ||||||
Realogy Group LLC/Realogy Co-Issuer Corp. | ||||||||
4.88%, 06/01/23 (Call 03/01/23)(a)(b) | 10,118 | 9,156,790 | ||||||
5.25%, 12/01/21 (Call 04/01/19)(a)(b) | 9,256 | 9,271,427 | ||||||
|
| |||||||
60,452,062 | ||||||||
Real Estate Investment Trusts — 2.9% | ||||||||
CBL & Associates LP | ||||||||
5.25%, 12/01/23 (Call 09/01/23)(a) | 7,908 | 6,589,451 | ||||||
5.95%, 12/15/26 (Call 09/15/26)(a) | 12,744 | 9,685,440 | ||||||
CyrusOne LP/CyrusOne Finance Corp. | ||||||||
5.00%, 03/15/24 (Call 03/15/20)(a) | 13,764 | 13,981,214 | ||||||
5.38%, 03/15/27 (Call 03/15/22)(a) | 10,340 | 10,524,181 | ||||||
Equinix Inc. | ||||||||
5.38%, 01/01/22 (Call 04/01/19)(a) | 12,853 | 13,198,424 | ||||||
5.38%, 04/01/23 (Call 04/01/19)(a) | 17,264 | 17,587,700 | ||||||
5.38%, 05/15/27 (Call 05/15/22)(a) | 24,316 | 25,136,665 | ||||||
5.75%, 01/01/25 (Call 01/01/20)(a) | 9,876 | 10,283,385 | ||||||
5.88%, 01/15/26 (Call 01/15/21)(a) | 21,221 | 22,228,997 | ||||||
ESH Hospitality Inc., 5.25%, 05/01/25 (Call 05/01/20)(a)(b) | 25,616 | 25,543,955 | ||||||
Iron Mountain Inc. | ||||||||
4.38%, 06/01/21 (Call 03/11/19)(a)(b) | 7,085 | 7,097,915 | ||||||
4.88%, 09/15/27 (Call 09/15/22)(a)(b) | 20,087 | 18,982,215 | ||||||
5.25%, 03/15/28 (Call 12/27/22)(a)(b) | 15,291 | 14,679,360 | ||||||
5.75%, 08/15/24 (Call 03/11/19)(a) | 17,786 | 17,824,907 | ||||||
6.00%, 08/15/23 (Call 03/11/19)(a) | 10,687 | 10,991,426 | ||||||
iStar Inc. | ||||||||
4.63%, 09/15/20 (Call 06/15/20)(a) | 8,531 | 8,568,915 | ||||||
5.25%, 09/15/22 (Call 09/15/19)(a) | 7,903 | 7,744,940 | ||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc. | ||||||||
4.50%, 09/01/26 (Call 06/01/26)(a) | 10,618 | 10,180,809 | ||||||
5.63%, 05/01/24 (Call 02/01/24)(a) | 19,771 | 20,425,914 | ||||||
5.75%, 02/01/27 (Call 11/01/26)(a)(b) | 13,102 | 13,396,795 | ||||||
MPT Operating Partnership LP/MPT Finance Corp. | ||||||||
5.00%, 10/15/27 (Call 10/15/22) | 27,756 | 27,640,349 | ||||||
5.25%, 08/01/26 (Call 08/01/21)(a) | 8,688 | 8,819,872 | ||||||
6.38%, 03/01/24 (Call 04/01/19)(a) | 7,429 | 7,803,840 |
Security | Par (000) | Value | ||||||
Real Estate Investment Trusts (continued) | ||||||||
SBA Communications Corp. | ||||||||
4.00%, 10/01/22 (Call 10/01/19)(a) | $ | 14,972 | $ | 14,866,054 | ||||
4.88%, 07/15/22 (Call 04/01/19)(a) | 14,859 | 15,058,152 | ||||||
4.88%, 09/01/24 (Call 09/01/19)(a) | 21,791 | 21,763,761 | ||||||
Starwood Property Trust Inc. | ||||||||
3.63%, 02/01/21 (Call 11/01/20)(a) | 9,423 | 9,349,972 | ||||||
4.75%, 03/15/25 (Call 09/15/24)(a) | 8,988 | 8,723,978 | ||||||
5.00%, 12/15/21 (Call 09/15/21)(a) | 14,130 | 14,426,730 | ||||||
Uniti Group LP/Uniti Fiber Holdings Inc./CSL Capital LLC, 7.13%, 12/15/24 (Call 12/15/19)(a)(b) | 9,938 | 8,248,540 | ||||||
Uniti Group LP/Uniti Group Finance Inc./CSL Capital LLC | ||||||||
6.00%, 04/15/23 (Call 04/01/19)(a)(b) | 10,644 | 9,898,920 | ||||||
8.25%, 10/15/23 (Call 04/15/19) | 19,493 | 16,910,178 | ||||||
|
| |||||||
448,162,954 | ||||||||
Retail — 3.0% | ||||||||
1011778 BC ULC/New Red Finance Inc. | ||||||||
4.25%, 05/15/24 (Call 05/15/20)(a)(b) | 27,273 | 26,586,061 | ||||||
4.63%, 01/15/22 (Call 04/01/19)(a)(b) | 23,145 | 23,257,948 | ||||||
5.00%, 10/15/25 (Call 10/15/20)(a)(b) | 51,130 | 49,466,179 | ||||||
Beacon Roofing Supply Inc., 4.88%, 11/01/25 (Call 11/01/20)(a)(b) | 25,597 | 23,893,200 | ||||||
Ferrellgas LP/Ferrellgas Finance Corp. | ||||||||
6.50%, 05/01/21 (Call 04/01/19)(a) | 6,262 | 5,613,296 | ||||||
6.75%, 01/15/22 (Call 04/01/19)(a) | 8,161 | 7,273,491 | ||||||
6.75%, 06/15/23 (Call 06/15/19)(a) | 9,058 | 8,106,910 | ||||||
Golden Nugget Inc. | ||||||||
6.75%, 10/15/24 (Call 10/15/19)(a)(b) | 25,962 | 26,128,006 | ||||||
8.75%, 10/01/25 (Call 10/01/20)(b) | 12,294 | 12,694,379 | ||||||
JC Penney Corp. Inc. | ||||||||
5.88%, 07/01/23 (Call 07/01/19)(a)(b) | 9,269 | 7,924,995 | ||||||
8.63%, 03/15/25 (Call 03/15/21)(b) | 6,116 | 3,654,310 | ||||||
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of | ||||||||
America LLC | ||||||||
4.75%, 06/01/27 (Call 06/01/22)(a)(b) | 13,757 | 13,503,355 | ||||||
5.00%, 06/01/24 (Call 06/01/19)(a)(b) | 19,956 | 20,165,538 | ||||||
5.25%, 06/01/26 (Call 06/01/21)(a)(b) | 19,883 | 20,200,780 | ||||||
L Brands Inc. | ||||||||
5.25%, 02/01/28 | 9,205 | 7,962,325 | ||||||
5.63%, 02/15/22(a) | 18,225 | 18,607,900 | ||||||
5.63%, 10/15/23 | 9,652 | 9,572,285 | ||||||
6.63%, 04/01/21 | 14,360 | 15,045,364 | ||||||
Neiman Marcus Group Ltd. LLC, 8.00%, 10/15/21 (Call 04/01/19)(a)(b) | 10,450 | 5,464,790 | ||||||
Penske Automotive Group Inc. | ||||||||
5.50%, 05/15/26 (Call 05/15/21)(a) | 10,015 | 9,851,756 | ||||||
5.75%, 10/01/22 (Call 04/01/19)(a) | 11,681 | 11,897,737 | ||||||
PetSmart Inc. | ||||||||
5.88%, 06/01/25 (Call 06/01/20)(a)(b) | 20,890 | 16,652,746 | ||||||
7.13%, 03/15/23 (Call 04/01/19)(a)(b) | 28,045 | 18,993,476 | ||||||
8.88%, 06/01/25 (Call 06/01/20)(a)(b) | 8,161 | 5,545,538 | ||||||
QVC Inc. | ||||||||
4.38%, 03/15/23(a) | 14,167 | 14,286,575 | ||||||
4.45%, 02/15/25 (Call 11/15/24)(a) | 10,096 | 9,816,683 | ||||||
4.85%, 04/01/24 | 12,349 | 12,444,238 | ||||||
5.13%, 07/02/22(a) | 8,251 | 8,598,559 | ||||||
Rite Aid Corp., 6.13%, 04/01/23 (Call 04/01/19)(a)(b) | 26,219 | 22,351,697 | ||||||
Staples Inc., 8.50%, 09/15/25 | 18,788 | 18,412,240 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.50%, 06/01/24 (Call 06/01/19)(a) | $ | 9,798 | $ | 9,664,043 | ||||
|
| |||||||
463,636,400 | ||||||||
Semiconductors — 0.1% | ||||||||
Sensata Technologies UK Financing Co. PLC, 6.25%, 02/15/26 (Call 02/15/21)(a)(b) | 12,695 | 13,378,237 | ||||||
|
| |||||||
Software — 2.3% | ||||||||
CDK Global Inc. | ||||||||
4.88%, 06/01/27 (Call 06/01/22)(a) | 12,039 | 11,825,819 | ||||||
5.00%, 10/15/24 (Call 07/15/24)(a) | 6,755 | 6,817,122 | ||||||
5.88%, 06/15/26 (Call 06/15/21)(a) | 10,595 | 10,912,850 | ||||||
Change Healthcare Holdings LLC/Change Healthcare Finance Inc., 5.75%, 03/01/25 (Call 03/01/20)(a)(b) | 20,045 | 19,551,769 | ||||||
First Data Corp. | ||||||||
5.00%, 01/15/24 (Call 03/11/19)(a)(b) | 27,453 | 28,173,916 | ||||||
5.38%, 08/15/23 (Call 03/11/19)(a)(b) | 20,964 | 21,450,365 | ||||||
5.75%, 01/15/24 (Call 03/11/19)(a)(b) | 29,671 | 30,618,988 | ||||||
Infor U.S. Inc., 6.50%, 05/15/22 (Call 03/18/19)(a) | 30,853 | 31,462,964 | ||||||
IQVIA Inc. | ||||||||
4.88%, 05/15/23 (Call 04/01/19)(b) | 14,228 | 14,501,445 | ||||||
5.00%, 10/15/26 (Call 10/15/21)(a)(b) | 19,834 | 20,181,095 | ||||||
MSCI Inc. | ||||||||
4.75%, 08/01/26 (Call 08/01/21)(a)(b) | 9,951 | 9,954,553 | ||||||
5.25%, 11/15/24 (Call 11/15/19)(a)(b) | 14,237 | 14,666,088 | ||||||
5.38%, 05/15/27 (Call 05/15/22)(a)(b) | 8,339 | 8,640,483 | ||||||
5.75%, 08/15/25 (Call 08/15/20)(a)(b) | 13,450 | 14,062,455 | ||||||
Nuance Communications Inc., 5.63%, 12/15/26 (Call 12/15/21) | 9,875 | 10,047,812 | ||||||
Open Text Corp. | ||||||||
5.63%, 01/15/23 (Call 04/01/19)(a)(b) | 12,178 | 12,513,481 | ||||||
5.88%, 06/01/26 (Call 06/01/21)(a)(b) | 14,935 | 15,685,484 | ||||||
Rackspace Hosting Inc., 8.63%, 11/15/24 (Call 11/15/19)(a)(b) | 22,763 | 19,840,711 | ||||||
Solera LLC/Solera Finance Inc., 10.50%, 03/01/24 (Call 04/01/19)(a)(b) | 32,299 | 35,004,041 | ||||||
Veritas U.S. Inc./Veritas Bermuda Ltd. | ||||||||
7.50%, 02/01/23 (Call 03/11/19)(a)(b) | 7,570 | 7,134,725 | ||||||
10.50%, 02/01/24 (Call 03/11/19)(a)(b) | 13,869 | 11,719,305 | ||||||
|
| |||||||
354,765,471 | ||||||||
Telecommunications — 9.0% | ||||||||
Anixter Inc., 5.13%, 10/01/21(a) | 6,953 | 7,087,714 | ||||||
C&W Senior Financing DAC | ||||||||
6.88%, 09/15/27 (Call 09/15/22)(a)(b) | 11,085 | 10,895,677 | ||||||
7.50%, 10/15/26 (Call 10/15/21)(b) | 8,413 | 8,591,776 | ||||||
CenturyLink Inc. | ||||||||
5.63%, 04/01/25 (Call 01/01/25)(a) | 9,834 | 9,404,812 | ||||||
Series S, 6.45%, 06/15/21(a) | 23,041 | 23,958,589 | ||||||
Series T, 5.80%, 03/15/22(a) | 25,585 | 26,299,249 | ||||||
Series V, 5.63%, 04/01/20 | 10,554 | 10,741,861 | ||||||
Series W, 6.75%, 12/01/23(a) | 13,363 | 13,918,366 | ||||||
Series Y, 7.50%, 04/01/24 | 18,643 | 19,755,754 | ||||||
Cincinnati Bell Inc., 7.00%, 07/15/24 (Call 09/15/19)(a)(b) | 12,268 | 11,071,870 | ||||||
CommScope Finance LLC | ||||||||
5.50%, 03/01/24 (Call 03/01/21)(b) | 9,480 | 9,650,166 | ||||||
6.00%, 03/01/26 (Call 03/01/22)(b) | 20,795 | 21,262,887 | ||||||
8.25%, 03/01/27 (Call 03/01/22)(a)(b) | 11,935 | 12,382,563 |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
CommScope Inc. | ||||||||
5.00%, 06/15/21 (Call 03/11/19)(a)(b) | $ | 11,632 | $ | 11,667,511 | ||||
5.50%, 06/15/24 (Call 06/15/19)(b) | 9,797 | 9,410,733 | ||||||
CommScope Technologies LLC | ||||||||
5.00%, 03/15/27 (Call 03/15/22)(a)(b) | 11,997 | 10,740,914 | ||||||
6.00%, 06/15/25 (Call 06/15/20)(b) | 30,744 | 29,053,080 | ||||||
Frontier Communications Corp. | ||||||||
6.88%, 01/15/25 (Call 10/15/24)(a) | 13,459 | 7,272,907 | ||||||
7.13%, 01/15/23 | 15,465 | 9,165,461 | ||||||
7.63%, 04/15/24(a) | 12,447 | 7,001,438 | ||||||
8.50%, 04/01/26 (Call 04/01/21)(a)(b) | 29,478 | 27,414,540 | ||||||
8.75%, 04/15/22 | 9,113 | 6,196,840 | ||||||
10.50%, 09/15/22 (Call 06/15/22) | 40,910 | 29,352,925 | ||||||
11.00%, 09/15/25 (Call 06/15/25) | 64,540 | 41,332,494 | ||||||
Hughes Satellite Systems Corp. | ||||||||
5.25%, 08/01/26(a) | 14,657 | 14,422,155 | ||||||
6.63%, 08/01/26(a) | 14,411 | 14,122,780 | ||||||
7.63%, 06/15/21(a) | 16,745 | 17,959,013 | ||||||
Inmarsat Finance PLC | ||||||||
4.88%, 05/15/22 (Call 04/01/19)(a)(b) | 18,561 | 18,521,172 | ||||||
6.50%, 10/01/24 (Call 10/01/19)(a)(b) | 6,938 | 6,868,620 | ||||||
Intelsat Connect Finance SA, 9.50%, 02/15/23 (Call 08/15/20)(a)(b) | 23,532 | 22,826,040 | ||||||
Intelsat Jackson Holdings SA | ||||||||
5.50%, 08/01/23 (Call 04/01/19) | 37,391 | 34,212,765 | ||||||
8.00%, 02/15/24 (Call 04/01/19)(a)(b) | 19,371 | 20,218,481 | ||||||
8.50%,��10/15/24 (Call 10/15/20)(b) | 53,153 | 53,668,584 | ||||||
9.50%, 09/30/22(b) | 9,481 | 10,999,230 | ||||||
9.75%, 07/15/25 (Call 07/15/21)(b) | 27,113 | 28,197,520 | ||||||
Intelsat Luxembourg SA, 8.13%, 06/01/23 (Call 04/15/19)(a) | 18,137 | 15,189,738 | ||||||
Koninklijke KPN NV, 7.00%, 03/28/73 (Call 03/28/23)(a)(b)(c)(d) | 10,395 | 10,789,100 | ||||||
Level 3 Financing Inc. | ||||||||
5.13%, 05/01/23 (Call 04/01/19)(a) | 14,673 | 14,771,055 | ||||||
5.25%, 03/15/26 (Call 03/15/21)(a) | 14,549 | 14,292,117 | ||||||
5.38%, 08/15/22 (Call 04/01/19)(a) | 20,566 | 20,720,245 | ||||||
5.38%, 01/15/24 (Call 04/01/19)(a) | 16,956 | 17,096,243 | ||||||
5.38%, 05/01/25 (Call 05/01/20)(a) | 15,757 | 15,697,911 | ||||||
5.63%, 02/01/23 (Call 04/01/19)(a) | 9,464 | 9,550,507 | ||||||
6.13%, 01/15/21 (Call 04/01/19) | 7,840 | 7,878,792 | ||||||
Nokia OYJ | ||||||||
3.38%, 06/12/22 | 9,986 | 9,782,535 | ||||||
4.38%, 06/12/27(a) | 10,294 | 10,133,156 | ||||||
Qwest Corp., 6.75%, 12/01/21(a) | 17,539 | 18,710,824 | ||||||
Sprint Communications Inc. | ||||||||
6.00%, 11/15/22 | 41,432 | 42,131,356 | ||||||
7.00%, 03/01/20(b) | 10,236 | 10,568,670 | ||||||
7.00%, 08/15/20 | 26,424 | 27,544,378 | ||||||
11.50%, 11/15/21 | 16,217 | 18,889,562 | ||||||
Sprint Corp. | ||||||||
7.13%, 06/15/24 | 44,632 | 46,019,774 | ||||||
7.25%, 09/15/21 | 35,431 | 37,423,994 | ||||||
7.63%, 02/15/25 (Call 11/15/24)(a) | 27,562 | 28,921,438 | ||||||
7.63%, 03/01/26 (Call 11/01/25) | 27,943 | 29,118,352 | ||||||
7.88%, 09/15/23 | 75,742 | 81,063,633 | ||||||
Telecom Italia SpA/Milano, | 27,124 | 26,411,995 | ||||||
Telefonaktiebolaget LM Ericsson, 4.13%, 05/15/22(a) | 19,859 | 20,061,959 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
T-Mobile USA Inc. | ||||||||
4.00%, 04/15/22 (Call 03/16/22) | $ | 7,921 | $ | 7,939,565 | ||||
4.50%, 02/01/26 (Call 02/01/21) | 18,768 | 18,525,517 | ||||||
4.75%, 02/01/28 (Call 02/01/23) | 27,193 | 26,442,473 | ||||||
5.13%, 04/15/25 (Call 04/15/20) | 8,465 | 8,673,980 | ||||||
5.38%, 04/15/27 (Call 04/15/22) | 10,024 | 10,271,676 | ||||||
6.00%, 03/01/23 (Call 03/11/19) | 16,830 | 17,292,825 | ||||||
6.00%, 04/15/24 (Call 04/15/19) | 18,710 | 19,395,534 | ||||||
6.38%, 03/01/25 (Call 09/01/19) | 31,446 | 32,782,455 | ||||||
6.50%, 01/15/24 (Call 03/11/19)(a) | 13,324 | 13,761,350 | ||||||
6.50%, 01/15/26 (Call 01/15/21)(a) | 36,659 | 39,239,709 | ||||||
Wind Tre SpA, 5.00%, 01/20/26 (Call 11/03/20)(b) | 36,144 | 31,354,920 | ||||||
|
| |||||||
1,374,093,825 | ||||||||
Toys, Games & Hobbies — 0.2% | ||||||||
Mattel Inc., 6.75%, 12/31/25 | 28,862 | 28,465,147 | ||||||
|
| |||||||
Transportation — 0.4% | ||||||||
Navios Maritime Holdings Inc./Navios Maritime Finance II U.S. Inc., 7.38%, 01/15/22 (Call 04/01/19)(a)(b) | 8,332 | 3,728,570 | ||||||
XPO Logistics Inc. | ||||||||
6.13%, 09/01/23 (Call 09/01/19)(a)(b) | 10,628 | 10,588,145 | ||||||
6.50%, 06/15/22 (Call 04/01/19)(b) | 23,816 | 24,262,550 | ||||||
6.75%, 08/15/24 (Call 08/15/21)(a)(b) | 17,550 | 17,659,687 | ||||||
|
| |||||||
56,238,952 | ||||||||
Trucking & Leasing — 0.7% | ||||||||
Avolon Holdings Funding Ltd. | ||||||||
5.13%, 10/01/23 (Call 09/01/23)(b) | 18,222 | 18,404,220 | ||||||
5.25%, 05/15/24 (Call 04/15/24)(b) | 4,855 | 4,976,375 | ||||||
5.50%, 01/15/23 (Call 12/15/22)(b) | 8,705 | 8,924,366 | ||||||
Park Aerospace Holdings Ltd. | ||||||||
4.50%, 03/15/23 (Call 02/15/23)(a)(b) | 16,446 | 16,293,103 | ||||||
5.25%, 08/15/22(a)(b) | 32,071 | 32,831,404 | ||||||
5.50%, 02/15/24(a)(b) | 21,720 | 22,425,900 | ||||||
|
| |||||||
103,855,368 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 98.2% |
| 15,070,194,894 | ||||||
|
|
Security | Shares (000) | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 24.4% | ||||||||
BlackRock Cash Funds: Institutional, | 3,540,731 | $ | 3,542,147,417 | |||||
BlackRock Cash Funds: Treasury, | 195,221 | 195,221,490 | ||||||
|
| |||||||
3,737,368,907 | ||||||||
|
| |||||||
Total Short-Term Investments — 24.4% |
| 3,737,368,907 | ||||||
|
| |||||||
Total Investments in Securities — 122.6% |
| 18,807,563,801 | ||||||
Other Assets, Less Liabilities — (22.6)% |
| (3,465,699,831 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 15,341,863,970 | ||||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. Reference index and spread are provided if the rate is currently floating. |
(d) | Variable or floating rate security. Rate shown is the rate in effect as of period-end. |
(e) | Perpetual security with no stated maturity date. |
(f) | 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. |
(g) | Affiliate of the Fund. |
(h) | Annualized 7-day yield as of period-end. |
(i) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 02/28/18 (000) | | | Net Activity (000) | | | Shares Held at 02/28/19 (000) | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 3,511,252 | 29,479 | 3,540,731 | $ | 3,542,147,417 | $ | 22,007,060 | (b) | $ | 198,538 | $ | 837,192 | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 210,259 | (15,038 | ) | 195,221 | 195,221,490 | 3,318,650 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 3,737,368,907 | $ | 25,325,710 | $ | 198,538 | $ | 837,192 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ High Yield Corporate Bond ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 15,070,194,894 | $ | — | $ | 15,070,194,894 | ||||||||
Money Market Funds | 3,737,368,907 | — | — | 3,737,368,907 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 3,737,368,907 | $ | 15,070,194,894 | $ | — | $ | 18,807,563,801 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULES OF INVESTMENTS |
Schedule of Investments February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes | ||||||||
Advertising — 0.1% | ||||||||
Omnicom Group Inc./Omnicom Capital Inc. | ||||||||
3.60%, 04/15/26 (Call 01/15/26)(a) | $ | 20,782 | $ | 20,031,842 | ||||
3.63%, 05/01/22(a) | 2,162 | 2,175,884 | ||||||
3.65%, 11/01/24 (Call 08/01/24)(a) | 13,353 | 13,213,734 | ||||||
WPP Finance 2010 | ||||||||
3.75%, 09/19/24(a) | 8,913 | 8,647,721 | ||||||
4.75%, 11/21/21(a) | 2,356 | 2,403,947 | ||||||
|
| |||||||
46,473,128 | ||||||||
Aerospace & Defense — 1.9% | ||||||||
General Dynamics Corp. | ||||||||
2.25%, 11/15/22 (Call 08/15/22)(a) | 10,773 | 10,525,452 | ||||||
3.38%, 05/15/23 (Call 04/15/23) | 11,763 | 11,925,306 | ||||||
3.50%, 05/15/25 (Call 03/15/25)(a) | 12,936 | 13,166,389 | ||||||
3.75%, 05/15/28 (Call 02/15/28)(a) | 9,364 | 9,587,236 | ||||||
L3 Technologies Inc. | ||||||||
3.85%, 06/15/23 (Call 05/15/23)(a) | 7,204 | 7,307,841 | ||||||
4.40%, 06/15/28 (Call 03/15/28)(a) | 14,490 | 14,967,147 | ||||||
Lockheed Martin Corp. | ||||||||
2.90%, 03/01/25 (Call 12/01/24)(a) | 14,715 | 14,429,032 | ||||||
3.35%, 09/15/21 | 8,355 | 8,468,497 | ||||||
3.55%, 01/15/26 (Call 10/15/25)(a) | 21,771 | 22,141,061 | ||||||
3.80%, 03/01/45 (Call 09/01/44) | 12,153 | 11,446,253 | ||||||
4.07%, 12/15/42 | 9,356 | 9,157,363 | ||||||
4.09%, 09/15/52 (Call 03/15/52)(a) | 22,522 | 21,726,606 | ||||||
4.70%, 05/15/46 (Call 11/15/45)(a) | 9,591 | 10,315,402 | ||||||
Northrop Grumman Corp. | ||||||||
2.55%, 10/15/22 (Call 09/15/22) | 12,298 | 12,070,733 | ||||||
2.93%, 01/15/25 (Call 11/15/24)(a) | 23,967 | 23,240,941 | ||||||
3.20%, 02/01/27 (Call 11/01/26)(a) | 7,149 | 6,895,872 | ||||||
3.25%, 08/01/23(a) | 10,487 | 10,505,376 | ||||||
3.25%, 01/15/28 (Call 10/15/27)(a) | 28,010 | 26,771,093 | ||||||
4.03%, 10/15/47 (Call 04/15/47) | 27,186 | 25,446,256 | ||||||
4.75%, 06/01/43 | 11,872 | 12,366,726 | ||||||
Raytheon Co., 2.50%, 12/15/22 (Call 09/15/22)(a) | 16,952 | 16,719,125 | ||||||
Rockwell Collins Inc. | ||||||||
2.80%, 03/15/22 (Call 02/15/22) | 13,023 | 12,814,477 | ||||||
3.20%, 03/15/24 (Call 01/15/24) | 7,410 | 7,260,985 | ||||||
3.50%, 03/15/27 (Call 12/15/26) | 21,634 | 20,872,154 | ||||||
4.35%, 04/15/47 (Call 10/15/46) | 13,512 | 12,738,114 | ||||||
United Technologies Corp. | ||||||||
1.95%, 11/01/21 (Call 10/01/21)(a) | 3,289 | 3,205,123 | ||||||
2.65%, 11/01/26 (Call 08/01/26) | 15,140 | 14,052,568 | ||||||
2.80%, 05/04/24 (Call 03/04/24) | 15,747 | 15,281,796 | ||||||
3.10%, 06/01/22(a) | 21,874 | 21,852,351 | ||||||
3.13%, 05/04/27 (Call 02/04/27) | 7,560 | 7,180,484 | ||||||
3.65%, 08/16/23 (Call 07/16/23)(a) | 22,166 | 22,490,845 | ||||||
3.75%, 11/01/46 (Call 05/01/46)(a) | 9,357 | 8,203,362 | ||||||
3.95%, 08/16/25 (Call 06/16/25)(a) | 22,686 | 23,143,150 | ||||||
4.13%, 11/16/28 (Call 08/16/28) | 33,163 | 33,591,237 | ||||||
4.15%, 05/15/45 (Call 11/16/44) | 16,202 | 15,160,733 | ||||||
4.45%, 11/16/38 (Call 05/16/38) | 9,325 | 9,262,415 | ||||||
4.50%, 06/01/42 | 35,011 | 34,563,038 | ||||||
4.63%, 11/16/48 (Call 05/16/48)(a) | 17,330 | 17,433,789 | ||||||
5.70%, 04/15/40(a) | 14,348 | 16,169,783 | ||||||
6.13%, 07/15/38(a) | 18,300 | 21,314,548 | ||||||
|
| |||||||
615,770,659 |
Security | Par (000) | Value | ||||||
Agriculture — 1.7% | ||||||||
Altria Group Inc. | ||||||||
2.63%, 09/16/26 (Call 06/16/26)(a) | $ | 235 | $ | 209,394 | ||||
2.85%, 08/09/22 | 23,426 | 23,041,882 | ||||||
3.80%, 02/14/24 (Call 01/14/24)(a) | 11,865 | 11,873,010 | ||||||
3.88%, 09/16/46 (Call 03/16/46)(a) | 19,955 | 15,096,049 | ||||||
4.00%, 01/31/24(a) | 18,984 | 19,189,170 | ||||||
4.25%, 08/09/42(a) | 12,203 | 9,832,112 | ||||||
4.40%, 02/14/26 (Call 12/14/25) | 16,600 | 16,743,353 | ||||||
4.80%, 02/14/29 (Call 11/14/28) | 33,085 | 33,019,578 | ||||||
5.38%, 01/31/44(a) | 20,363 | 19,074,014 | ||||||
5.80%, 02/14/39 (Call 08/14/38) | 23,100 | 22,972,918 | ||||||
5.95%, 02/14/49 (Call 08/14/48) | 30,320 | 30,213,744 | ||||||
Archer-Daniels-Midland Co., 2.50%, 08/11/26 (Call 05/11/26)(a) | 11,215 | 10,553,937 | ||||||
BAT Capital Corp. | ||||||||
2.76%, 08/15/22 (Call 07/15/22)(a) | 24,162 | 23,500,454 | ||||||
3.22%, 08/15/24 (Call 06/15/24)(a) | 27,444 | 26,378,533 | ||||||
3.56%, 08/15/27 (Call 05/15/27)(a) | 40,756 | 37,340,871 | ||||||
4.39%, 08/15/37 (Call 02/15/37)(a) | 35,840 | 30,018,530 | ||||||
4.54%, 08/15/47 (Call 02/15/47)(a) | 28,535 | 23,013,535 | ||||||
Philip Morris International Inc. | ||||||||
2.38%, 08/17/22 (Call 07/17/22)(a) | 4,105 | 4,003,985 | ||||||
2.50%, 08/22/22(a) | 11,838 | 11,598,556 | ||||||
2.50%, 11/02/22 (Call 10/02/22)(a) | 6,600 | 6,446,740 | ||||||
2.75%, 02/25/26 (Call 11/25/25) | 8,882 | 8,379,968 | ||||||
2.90%, 11/15/21(a) | 3,278 | 3,265,309 | ||||||
3.25%, 11/10/24(a) | 5,035 | 4,993,558 | ||||||
3.38%, 08/11/25 (Call 05/11/25)(a) | 9,233 | 9,167,127 | ||||||
3.88%, 08/21/42(a) | 7,591 | 6,600,822 | ||||||
4.13%, 03/04/43 | 8,538 | 7,654,490 | ||||||
4.25%, 11/10/44(a) | 12,693 | 11,658,278 | ||||||
4.38%, 11/15/41(a) | 13,615 | 12,659,989 | ||||||
4.88%, 11/15/43 | 8,081 | 7,993,393 | ||||||
6.38%, 05/16/38(a) | 22,654 | 26,608,532 | ||||||
Reynolds American Inc. | ||||||||
4.00%, 06/12/22(a) | 9,506 | 9,615,423 | ||||||
4.45%, 06/12/25 (Call 03/12/25)(a) | 30,952 | 31,201,616 | ||||||
5.70%, 08/15/35 (Call 02/15/35) | 8,976 | 8,896,399 | ||||||
5.85%, 08/15/45 (Call 02/15/45) | 30,105 | 28,705,683 | ||||||
|
| |||||||
551,520,952 | ||||||||
Airlines — 0.0% | ||||||||
Delta Air Lines Inc., 3.63%, 03/15/22 (Call 02/15/22)(a) | 8,169 | 8,137,533 | ||||||
|
| |||||||
Apparel — 0.1% | ||||||||
NIKE Inc. | ||||||||
2.38%, 11/01/26 (Call 08/01/26)(a) | 14,984 | 14,135,302 | ||||||
3.88%, 11/01/45 (Call 05/01/45)(a) | 12,979 | 12,783,017 | ||||||
|
| |||||||
26,918,319 | ||||||||
Auto Manufacturers — 1.7% | ||||||||
Daimler Finance North America LLC | ||||||||
3.65%, 02/22/24(b) | 12,000 | 11,937,797 | ||||||
8.50%, 01/18/31 | 19,809 | 27,040,250 | ||||||
Ford Motor Co. | ||||||||
4.35%, 12/08/26 (Call 09/08/26)(a) | 18,258 | 16,565,138 | ||||||
4.75%, 01/15/43 | 20,518 | 15,657,152 | ||||||
5.29%, 12/08/46 (Call 06/08/46)(a) | 20,684 | 16,671,341 | ||||||
7.45%, 07/16/31(a) | 24,757 | 26,113,495 | ||||||
Ford Motor Credit Co. LLC | ||||||||
2.98%, 08/03/22 (Call 07/03/22)(a) | 4,000 | 3,772,870 | ||||||
3.10%, 05/04/23 | 6,393 | 5,879,512 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Auto Manufacturers (continued) | ||||||||
3.34%, 03/28/22 (Call 02/28/22)(a) | $ | 4,028 | $ | 3,865,017 | ||||
3.66%, 09/08/24(a) | 11,658 | 10,560,078 | ||||||
3.81%, 01/09/24 (Call 11/09/23)(a) | 5,783 | 5,367,505 | ||||||
3.82%, 11/02/27 (Call 08/02/27)(a) | 8,740 | 7,415,559 | ||||||
4.13%, 08/04/25 | 17,749 | 16,221,965 | ||||||
4.14%, 02/15/23 (Call 01/15/23)(a) | 8,935 | 8,627,518 | ||||||
4.25%, 09/20/22(a) | 10,076 | 9,881,356 | ||||||
4.38%, 08/06/23(a) | 11,766 | 11,433,049 | ||||||
4.39%, 01/08/26(a) | 19,649 | 17,930,966 | ||||||
General Motors Co. | ||||||||
4.20%, 10/01/27 (Call 07/01/27) | 9,079 | 8,500,335 | ||||||
4.88%, 10/02/23(a) | 7,801 | 8,039,065 | ||||||
5.00%, 10/01/28 (Call 07/01/28)(a) | 13,040 | 12,767,889 | ||||||
5.00%, 04/01/35 | 7,755 | 6,899,637 | ||||||
5.15%, 04/01/38 (Call 10/01/37) | 15,474 | 13,911,915 | ||||||
5.20%, 04/01/45 | 14,060 | 12,242,940 | ||||||
5.40%, 04/01/48 (Call 10/01/47) | 9,973 | 8,963,488 | ||||||
5.95%, 04/01/49 (Call 10/01/48) | 13,865 | 13,172,762 | ||||||
6.25%, 10/02/43(a) | 13,806 | 13,585,045 | ||||||
6.60%, 04/01/36 (Call 10/01/35)(a) | 14,426 | 14,935,337 | ||||||
6.75%, 04/01/46 (Call 10/01/45) | 8,662 | 8,912,139 | ||||||
General Motors Financial Co. Inc. | ||||||||
3.15%, 06/30/22 (Call 05/30/22)(a) | 15,743 | 15,433,217 | ||||||
3.25%, 01/05/23 (Call 12/05/22)(a) | 2,408 | 2,344,833 | ||||||
3.45%, 01/14/22 (Call 12/14/21)(a) | 14,431 | 14,392,410 | ||||||
3.45%, 04/10/22 (Call 02/10/22) | 11,650 | 11,573,301 | ||||||
3.50%, 11/07/24 (Call 09/07/24)(a) | 9,876 | 9,329,233 | ||||||
3.70%, 05/09/23 (Call 03/09/23)(a) | 15,999 | 15,734,260 | ||||||
3.95%, 04/13/24 (Call 02/13/24)(a) | 13,635 | 13,241,109 | ||||||
4.00%, 01/15/25 (Call 10/15/24) | 11,287 | 10,846,543 | ||||||
4.00%, 10/06/26 (Call 07/06/26)(a) | 5,930 | 5,554,297 | ||||||
4.15%, 06/19/23 (Call 05/19/23) | 16,104 | 16,067,409 | ||||||
4.30%, 07/13/25 (Call 04/13/25)(a) | 8,544 | 8,309,521 | ||||||
4.35%, 04/09/25 (Call 02/09/25)(a) | 13,795 | 13,458,699 | ||||||
4.35%, 01/17/27 (Call 10/17/26) | 11,483 | 10,876,930 | ||||||
5.10%, 01/17/24 (Call 12/17/23) | 8,090 | 8,267,126 | ||||||
5.25%, 03/01/26 (Call 12/01/25)(a) | 18,346 | 18,594,702 | ||||||
Toyota Motor Corp., 3.42%, 07/20/23(a) | 2,150 | 2,178,854 | ||||||
Toyota Motor Credit Corp. | ||||||||
2.15%, 09/08/22(a) | 5,790 | 5,639,249 | ||||||
3.20%, 01/11/27(a) | 11,533 | 11,428,833 | ||||||
3.30%, 01/12/22(a) | 5,280 | 5,340,811 | ||||||
3.45%, 09/20/23(a) | 11,025 | 11,197,741 | ||||||
|
| |||||||
546,680,198 | ||||||||
Banks — 25.5% | ||||||||
Australia & New Zealand Banking Group Ltd./New York NY | ||||||||
2.30%, 06/01/21 | 3,135 | 3,080,563 | ||||||
2.55%, 11/23/21(a) | 2,794 | 2,747,942 | ||||||
2.63%, 05/19/22(a) | 647 | 635,558 | ||||||
2.63%, 11/09/22 | 7,580 | 7,453,999 | ||||||
3.70%, 11/16/25(a) | 12,242 | 12,384,051 | ||||||
Banco Santander SA | ||||||||
3.13%, 02/23/23 | 9,287 | 9,007,741 | ||||||
3.50%, 04/11/22(a) | 12,312 | 12,266,664 | ||||||
3.80%, 02/23/28 | 20,310 | 19,112,358 | ||||||
3.85%, 04/12/23(a) | 10,275 | 10,209,119 | ||||||
4.25%, 04/11/27(a) | 13,887 | 13,605,048 | ||||||
4.38%, 04/12/28(a) | 12,822 | 12,616,852 | ||||||
5.18%, 11/19/25(a) | 2,498 | 2,561,399 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Bank of America Corp. | ||||||||
2.33%, 10/01/21 (Call 10/01/20)(c)(d) | $ | 1,541 | $ | 1,524,269 | ||||
2.50%, 10/21/22 (Call 10/21/21)(a) | 14,191 | 13,875,987 | ||||||
2.82%, 07/21/23 (Call 07/21/22)(a)(c)(d) | 3,824 | 3,763,530 | ||||||
2.88%, 04/24/23 (Call 04/24/22)(a)(c)(d) | 9,588 | 9,464,320 | ||||||
3.00%, 12/20/23 (Call 12/20/22)(a)(c)(d) | 38,476 | 38,011,148 | ||||||
3.09%, 10/01/25 (Call 10/01/24)(a)(c)(d) | 15,699 | 15,315,532 | ||||||
3.12%, 01/20/23 (Call 01/20/22)(c)(d) | 18,242 | 18,167,972 | ||||||
3.25%, 10/21/27 (Call 10/21/26)(a) | 24,487 | 23,438,587 | ||||||
3.30%, 01/11/23 | 45,268 | 45,434,627 | ||||||
3.37%, 01/23/26 (Call 01/23/25)(c)(d) | 28,650 | 28,187,073 | ||||||
3.42%, 12/20/28 (Call 12/20/27)(a)(c)(d) | 67,182 | 64,817,355 | ||||||
3.50%, 04/19/26(a) | 27,269 | 27,032,613 | ||||||
3.55%, 03/05/24 (Call 03/05/23)(a)(c)(d) | 11,605 | 11,642,584 | ||||||
3.59%, 07/21/28 (Call 07/21/27)(c)(d) | 26,642 | 26,041,417 | ||||||
3.71%, 04/24/28 (Call 04/24/27)(a)(c)(d) | 24,797 | 24,460,153 | ||||||
3.82%, 01/20/28 (Call 01/20/27)(a)(c)(d) | 26,796 | 26,654,517 | ||||||
3.86%, 07/23/24 (Call 07/23/23)(c)(d) | 22,167 | 22,531,705 | ||||||
3.88%, 08/01/25(a) | 23,409 | 23,850,786 | ||||||
3.95%, 01/23/49 (Call 01/23/48)(a)(c)(d) | 11,259 | 10,608,523 | ||||||
3.97%, 03/05/29 (Call 03/05/28)(a)(c)(d) | 25,900 | 25,988,006 | ||||||
3.97%, 02/07/30 (Call 02/07/29)(a)(c)(d) | 18,145 | 18,228,781 | ||||||
4.00%, 04/01/24(a) | 34,769 | 35,792,940 | ||||||
4.00%, 01/22/25 | 23,363 | 23,444,771 | ||||||
4.10%, 07/24/23(a) | 20,858 | 21,506,160 | ||||||
4.13%, 01/22/24(a) | 30,881 | 31,908,324 | ||||||
4.20%, 08/26/24(a) | 36,540 | 37,369,334 | ||||||
4.24%, 04/24/38 (Call 04/24/37)(a)(c)(d) | 31,988 | 31,883,243 | ||||||
4.25%, 10/22/26 | 25,660 | 25,815,831 | ||||||
4.27%, 07/23/29 (Call 07/23/28)(a)(c)(d) | 38,416 | 39,447,673 | ||||||
4.44%, 01/20/48 (Call 01/20/47)(a)(c)(d) | 27,111 | 27,611,233 | ||||||
4.45%, 03/03/26 | 28,116 | 28,641,317 | ||||||
4.88%, 04/01/44 | 951 | 1,023,993 | ||||||
5.00%, 01/21/44(a) | 16,072 | 17,558,880 | ||||||
5.70%, 01/24/22(a) | 1,827 | 1,962,428 | ||||||
5.88%, 02/07/42(a) | 16,671 | 20,268,300 | ||||||
6.11%, 01/29/37 | 24,203 | 27,925,378 | ||||||
7.75%, 05/14/38(a) | 16,367 | 22,155,813 | ||||||
Series L, 3.95%, 04/21/25 | 34,045 | 34,037,738 | ||||||
Series L, 4.18%, 11/25/27 (Call 11/25/26)(a) | 24,814 | 24,694,821 | ||||||
Bank of America N.A., 6.00%, 10/15/36(a) | 13,770 | 16,469,847 | ||||||
Bank of Montreal | ||||||||
2.35%, 09/11/22(a) | 6,320 | 6,170,715 | ||||||
2.55%, 11/06/22 (Call 10/06/22)(a) | 5,167 | 5,066,476 | ||||||
Series E, 3.30%, 02/05/24(a) | 18,890 | 18,832,854 | ||||||
Bank of New York Mellon Corp. (The) | ||||||||
2.20%, 08/16/23 (Call 06/16/23) | 8,038 | 7,724,593 | ||||||
2.45%, 08/17/26 (Call 05/17/26) | 7,416 | 6,949,190 | ||||||
2.66%, 05/16/23 (Call 05/16/22)(a)(c)(d) | 535 | 526,435 | ||||||
2.80%, 05/04/26 (Call 02/04/26)(a) | 10,584 | 10,176,841 | ||||||
2.95%, 01/29/23 (Call 12/29/22) | 15,466 | 15,389,688 | ||||||
3.25%, 05/16/27 (Call 02/16/27) | 16,631 | 16,420,405 | ||||||
3.30%, 08/23/29 (Call 05/23/29) | 8,923 | 8,682,651 | ||||||
3.40%, 01/29/28 (Call 10/29/27)(a) | 13,250 | 13,218,028 | ||||||
3.44%, 02/07/28 (Call 02/07/27)(a)(c)(d) | 762 | 759,866 | ||||||
3.45%, 08/11/23(a) | 9,945 | 10,081,401 | ||||||
3.50%, 04/28/23(a) | 15,811 | 16,036,400 | ||||||
3.65%, 02/04/24 (Call 01/05/24) | 14,912 | 15,226,852 | ||||||
Series G, 3.00%, 02/24/25 (Call 01/24/25)(a) | 10,457 | 10,297,151 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Bank of Nova Scotia (The) | ||||||||
2.45%, 09/19/22(a) | $ | 7,254 | $ | 7,105,813 | ||||
2.70%, 03/07/22(a) | 3,003 | 2,975,727 | ||||||
2.80%, 07/21/21(a) | 10,955 | 10,898,431 | ||||||
3.40%, 02/11/24(a) | 19,000 | 19,016,895 | ||||||
4.50%, 12/16/25(a) | 11,376 | 11,676,727 | ||||||
Barclays PLC | ||||||||
3.65%, 03/16/25 | 16,632 | 15,949,193 | ||||||
3.68%, 01/10/23 (Call 01/10/22)(a) | 8,914 | 8,830,841 | ||||||
4.34%, 05/16/24 (Call 05/16/23)(a)(c)(d) | 25,630 | 25,576,377 | ||||||
4.34%, 01/10/28 (Call 01/10/27)(a) | 14,228 | 13,777,492 | ||||||
4.38%, 09/11/24(a) | 12,238 | 12,023,740 | ||||||
4.38%, 01/12/26(a) | 32,061 | 31,834,931 | ||||||
4.84%, 05/09/28 (Call 05/07/27)(a) | 21,289 | 20,543,681 | ||||||
4.95%, 01/10/47(a) | 16,436 | 15,648,548 | ||||||
4.97%, 05/16/29 (Call 05/16/28)(a)(c)(d) | 19,356 | 19,600,457 | ||||||
5.20%, 05/12/26(a) | 30,364 | 30,620,111 | ||||||
5.25%, 08/17/45 | 16,638 | 16,671,585 | ||||||
BB&T Corp. | ||||||||
2.75%, 04/01/22 (Call 03/01/22)(a) | 9,717 | 9,654,983 | ||||||
2.85%, 10/26/24 (Call 09/26/24) | 14,469 | 14,163,551 | ||||||
3.70%, 06/05/25 (Call 05/05/25) | 15,065 | 15,347,077 | ||||||
3.75%, 12/06/23 (Call 11/06/23) | 5,171 | 5,294,168 | ||||||
BNP Paribas SA | ||||||||
3.25%, 03/03/23 | 12,268 | 12,341,228 | ||||||
4.25%, 10/15/24(a) | 10,636 | 10,689,782 | ||||||
BPCE SA | ||||||||
2.75%, 12/02/21(a) | 8,566 | 8,448,185 | ||||||
4.00%, 04/15/24(a) | 16,373 | 16,697,688 | ||||||
Branch Banking & Trust Co. | ||||||||
2.63%, 01/15/22 (Call 12/15/21) | 3,176 | 3,146,689 | ||||||
3.63%, 09/16/25 (Call 08/16/25)(a) | 20,010 | 20,073,066 | ||||||
3.80%, 10/30/26 (Call 09/30/26) | 7,479 | 7,523,371 | ||||||
Canadian Imperial Bank of Commerce | ||||||||
2.55%, 06/16/22(a) | 10,016 | 9,900,707 | ||||||
3.50%, 09/13/23(a) | 11,470 | 11,610,865 | ||||||
Capital One N.A. | ||||||||
2.25%, 09/13/21 (Call 08/13/21) | 3,262 | 3,174,744 | ||||||
2.65%, 08/08/22 (Call 07/08/22)(a) | 7,631 | 7,440,053 | ||||||
Citibank N.A., 3.65%, 01/23/24 (Call 12/23/23)(a) | 12,405 | 12,605,698 | ||||||
Citigroup Inc. | ||||||||
2.70%, 10/27/22 (Call 09/27/22)(a) | 12,809 | 12,580,042 | ||||||
2.75%, 04/25/22 (Call 03/25/22)(a) | 10,088 | 9,957,147 | ||||||
2.88%, 07/24/23 (Call 07/24/22)(a)(c)(d) | 32,187 | 31,739,948 | ||||||
3.14%, 01/24/23 (Call 01/24/22)(c)(d) | 17,764 | 17,677,841 | ||||||
3.20%, 10/21/26 (Call 07/21/26)(a) | 43,951 | 42,071,721 | ||||||
3.30%, 04/27/25(a) | 18,703 | 18,446,352 | ||||||
3.40%, 05/01/26(a) | 14,200 | 13,850,872 | ||||||
3.50%, 05/15/23(a) | 18,918 | 18,970,023 | ||||||
3.52%, 10/27/28 (Call 10/27/27)(a)(c)(d) | 22,364 | 21,643,045 | ||||||
3.67%, 07/24/28 (Call 07/24/27)(a)(c)(d) | 28,973 | 28,367,531 | ||||||
3.70%, 01/12/26(a) | 13,862 | 13,817,127 | ||||||
3.75%, 06/16/24(a) | 673 | 683,011 | ||||||
3.88%, 10/25/23(a) | 15,457 | 15,844,394 | ||||||
3.88%, 03/26/25(a) | 13,423 | 13,322,293 | ||||||
3.88%, 01/24/39 (Call 01/24/38)(a)(c)(d) | 9,699 | 9,176,920 | ||||||
3.89%, 01/10/28 (Call 01/10/27)(a)(c)(d) | 42,329 | 42,168,666 | ||||||
4.00%, 08/05/24(a) | 3,866 | 3,891,255 | ||||||
4.04%, 06/01/24 (Call 06/01/23)(a)(c)(d) | 15,663 | 16,003,225 | ||||||
4.05%, 07/30/22(a) | 16,665 | 17,060,949 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
4.08%, 04/23/29 (Call 04/23/28)(a)(c)(d) | $ | 20,500 | $ | 20,675,123 | ||||
4.13%, 07/25/28(a) | 20,360 | 20,014,135 | ||||||
4.28%, 04/24/48 (Call 04/24/47)(a)(c)(d) | 11,480 | 11,404,289 | ||||||
4.30%, 11/20/26(a) | 13,739 | 13,761,058 | ||||||
4.40%, 06/10/25 | 29,271 | 29,774,874 | ||||||
4.45%, 09/29/27(a) | 40,551 | 40,742,774 | ||||||
4.50%, 01/14/22 | 16,616 | 17,216,673 | ||||||
4.60%, 03/09/26(a) | 14,133 | 14,450,177 | ||||||
4.65%, 07/30/45 | 14,125 | 14,642,702 | ||||||
4.65%, 07/23/48 (Call 06/23/48) | 29,302 | 30,499,195 | ||||||
4.75%, 05/18/46(a) | 25,129 | 24,729,723 | ||||||
5.30%, 05/06/44 | 12,038 | 12,752,288 | ||||||
5.50%, 09/13/25(a) | 12,975 | 14,023,841 | ||||||
5.88%, 01/30/42 | 13,326 | 15,801,023 | ||||||
6.63%, 06/15/32(a) | 12,208 | 14,437,521 | ||||||
6.68%, 09/13/43(a) | 13,614 | 16,752,318 | ||||||
8.13%, 07/15/39 | 27,005 | 39,199,945 | ||||||
Citizens Financial Group Inc., 4.30%, 12/03/25 (Call 11/03/25) | 10,817 | 10,903,218 | ||||||
Compass Bank, 2.88%, 06/29/22 (Call 05/29/22)(a) | 7,973 | 7,784,996 | ||||||
Cooperatieve Rabobank UA | ||||||||
3.75%, 07/21/26(a) | 32,424 | 31,271,486 | ||||||
3.95%, 11/09/22 | 18,906 | 19,066,278 | ||||||
4.38%, 08/04/25(a) | 23,578 | 23,950,962 | ||||||
4.63%, 12/01/23 | 21,021 | 21,654,560 | ||||||
5.25%, 05/24/41(a) | 16,543 | 18,927,718 | ||||||
5.25%, 08/04/45(a) | 4,414 | 4,759,927 | ||||||
5.75%, 12/01/43(a) | 10,949 | 12,542,189 | ||||||
Cooperatieve Rabobank UA/NY | ||||||||
2.75%, 01/10/23(a) | 16,418 | 16,118,887 | ||||||
3.38%, 05/21/25(a) | 16,134 | 16,169,306 | ||||||
Credit Suisse AG/New York NY | ||||||||
3.00%, 10/29/21 | 1,875 | 1,869,885 | ||||||
3.63%, 09/09/24(a) | 35,185 | 35,226,476 | ||||||
Credit Suisse Group Funding Guernsey Ltd. | ||||||||
3.75%, 03/26/25(a) | 24,572 | 24,183,389 | ||||||
3.80%, 09/15/22(a) | 24,601 | 24,749,037 | ||||||
3.80%, 06/09/23 | 20,875 | 20,843,343 | ||||||
4.55%, 04/17/26(a) | 27,117 | 27,781,453 | ||||||
4.88%, 05/15/45(a) | 22,707 | 23,240,283 | ||||||
Deutsche Bank AG | ||||||||
4.10%, 01/13/26(a) | 803 | 765,002 | ||||||
4.25%, 10/14/21 | 1,515 | 1,501,395 | ||||||
Deutsche Bank AG/London, 3.70%, 05/30/24(a) | 10,513 | 9,829,740 | ||||||
Deutsche Bank AG/New York NY | ||||||||
3.30%, 11/16/22(a) | 4,829 | 4,575,661 | ||||||
3.70%, 05/30/24 | 11,908 | 11,166,940 | ||||||
3.95%, 02/27/23(a) | 9,873 | 9,543,825 | ||||||
Discover Bank | ||||||||
3.20%, 08/09/21 (Call 07/09/21) | 461 | 459,421 | ||||||
3.35%, 02/06/23 (Call 01/06/23) | 6,668 | 6,608,489 | ||||||
3.45%, 07/27/26 (Call 04/27/26)(a) | 18,532 | 17,510,959 | ||||||
4.20%, 08/08/23 | 12,485 | 12,751,899 | ||||||
4.65%, 09/13/28 (Call 06/13/28)(a) | 4,200 | 4,257,224 | ||||||
Fifth Third Bancorp. | ||||||||
3.65%, 01/25/24 (Call 12/25/23) | 2,318 | 2,345,224 | ||||||
3.95%, 03/14/28 (Call 02/14/28)(a) | 4,370 | 4,387,961 | ||||||
4.30%, 01/16/24 (Call 12/16/23)(a) | 8,961 | 9,231,447 | ||||||
8.25%, 03/01/38 | 9,282 | 12,736,514 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Fifth Third Bank/Cincinnati OH | ||||||||
3.85%, 03/15/26 (Call 02/15/26)(a) | $ | 21,294 | $ | 21,223,800 | ||||
3.95%, 07/28/25 (Call 06/28/25)(a) | 1,125 | 1,157,111 | ||||||
Goldman Sachs Group Inc. (The) | ||||||||
2.88%, 10/31/22 (Call 10/31/21)(c)(d) | 29,362 | 28,910,368 | ||||||
2.91%, 06/05/23 (Call 06/05/22)(c)(d) | 20,745 | 20,364,454 | ||||||
2.91%, 07/24/23 (Call 07/24/22)(c)(d) | 20,506 | 20,090,690 | ||||||
3.00%, 04/26/22 (Call 04/26/21)(a) | 23,721 | 23,539,511 | ||||||
3.20%, 02/23/23 (Call 01/23/23)(a) | 22,266 | 22,111,648 | ||||||
3.27%, 09/29/25 (Call 09/29/24)(a)(c)(d) | 28,413 | 27,535,672 | ||||||
3.50%, 01/23/25 (Call 10/23/24)(a) | 36,717 | 36,090,116 | ||||||
3.50%, 11/16/26 (Call 11/16/25) | 27,422 | 26,388,232 | ||||||
3.63%, 01/22/23(a) | 31,403 | 31,599,806 | ||||||
3.63%, 02/20/24 (Call 01/20/24)(a) | 10,690 | 10,673,485 | ||||||
3.69%, 06/05/28 (Call 06/05/27)(c)(d) | 33,405 | 32,295,857 | ||||||
3.75%, 05/22/25 (Call 02/22/25)(a) | 32,919 | 32,787,182 | ||||||
3.75%, 02/25/26 (Call 11/25/25) | 19,214 | 18,945,027 | ||||||
3.81%, 04/23/29 (Call 04/23/28)(a)(c)(d) | 33,728 | 32,749,193 | ||||||
3.85%, 07/08/24 (Call 04/08/24) | 27,840 | 28,084,009 | ||||||
3.85%, 01/26/27 (Call 01/26/26)(a) | 27,472 | 26,958,260 | ||||||
4.00%, 03/03/24(a) | 30,591 | 31,034,459 | ||||||
4.02%, 10/31/38 (Call 10/31/37)(c)(d) | 29,084 | 26,927,581 | ||||||
4.22%, 05/01/29 (Call 05/01/28)(a)(c)(d) | 37,750 | 37,785,912 | ||||||
4.25%, 10/21/25(a) | 18,575 | 18,616,224 | ||||||
4.41%, 04/23/39 (Call 04/23/38)(a)(c)(d) | 20,330 | 19,689,786 | ||||||
4.75%, 10/21/45 (Call 04/21/45)(a) | 23,824 | 24,105,886 | ||||||
4.80%, 07/08/44 (Call 01/08/44)(a) | 25,928 | 26,312,914 | ||||||
5.15%, 05/22/45 | 19,712 | 19,840,374 | ||||||
5.75%, 01/24/22 | 26,702 | 28,504,377 | ||||||
5.95%, 01/15/27(a) | 7,449 | 8,173,563 | ||||||
6.13%, 02/15/33 | 365 | 430,969 | ||||||
6.25%, 02/01/41(a) | 27,285 | 32,846,507 | ||||||
6.45%, 05/01/36(a) | 855 | 999,720 | ||||||
6.75%, 10/01/37 | 64,138 | 76,464,522 | ||||||
HSBC Bank USA N.A./New York NY | ||||||||
5.63%, 08/15/35(a) | 7,592 | 8,535,840 | ||||||
5.88%, 11/01/34 | 12,733 | 14,752,948 | ||||||
HSBC Holdings PLC | ||||||||
2.65%, 01/05/22(a) | 11,158 | 10,997,858 | ||||||
2.95%, 05/25/21(a) | 2,124 | 2,113,990 | ||||||
3.03%, 11/22/23 (Call 11/22/22)(a)(c)(d) | 13,819 | 13,570,809 | ||||||
3.26%, 03/13/23 (Call 03/13/22)(a)(c)(d) | 31,652 | 31,412,913 | ||||||
3.60%, 05/25/23(a) | 22,400 | 22,501,488 | ||||||
3.90%, 05/25/26 | 35,822 | 35,614,766 | ||||||
3.95%, 05/18/24 (Call 05/18/23)(c)(d) | 10,685 | 10,780,027 | ||||||
4.00%, 03/30/22(a) | 28,605 | 29,306,478 | ||||||
4.04%, 03/13/28 (Call 03/13/27)(c)(d) | 22,709 | 22,430,095 | ||||||
4.25%, 03/14/24(a) | 14,128 | 14,269,272 | ||||||
4.25%, 08/18/25(a) | 24,469 | 24,676,568 | ||||||
4.29%, 09/12/26 (Call 09/12/25)(a)(c)(d) | 17,590 | 17,817,980 | ||||||
4.30%, 03/08/26(a) | 36,689 | 37,375,682 | ||||||
4.38%, 11/23/26(a) | 15,971 | 16,068,723 | ||||||
4.58%, 06/19/29 (Call 06/19/28)(a)(c)(d) | 31,246 | 32,023,391 | ||||||
4.88%, 01/14/22(a) | 7,027 | 7,344,976 | ||||||
5.25%, 03/14/44(a) | 17,161 | 18,106,465 | ||||||
6.10%, 01/14/42(a) | 10,565 | 13,130,134 | ||||||
6.50%, 05/02/36(a) | 25,853 | 30,735,965 | ||||||
6.50%, 09/15/37(a) | 32,190 | 38,427,208 | ||||||
6.80%, 06/01/38 | 23,836 | 29,435,968 | ||||||
HSBC USA Inc., 3.50%, 06/23/24(a) | 9,614 | 9,612,777 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Huntington Bancshares Inc./OH, 2.30%, 01/14/22 (Call 12/14/21)(a) | $ | 7,838 | $ | 7,650,383 | ||||
Huntington National Bank (The), 3.55%, 10/06/23 (Call 09/06/23)(a) | 2,600 | 2,630,046 | ||||||
ING Groep NV | ||||||||
3.15%, 03/29/22(a) | 11,373 | 11,294,922 | ||||||
3.95%, 03/29/27(a) | 25,699 | 25,264,381 | ||||||
4.10%, 10/02/23(a) | 14,745 | 14,939,071 | ||||||
4.55%, 10/02/28(a) | 22,087 | 22,563,222 | ||||||
JPMorgan Chase & Co. | ||||||||
2.30%, 08/15/21 (Call 08/15/20)(a) | 1,800 | 1,766,871 | ||||||
2.70%, 05/18/23 (Call 03/18/23)(a) | 28,372 | 27,864,836 | ||||||
2.78%, 04/25/23 (Call 04/25/22)(c)(d) | 14,729 | 14,559,705 | ||||||
2.95%, 10/01/26 (Call 07/01/26)(a) | 27,506 | 26,249,355 | ||||||
2.97%, 01/15/23 (Call 01/15/22)(a) | 17,243 | 17,128,517 | ||||||
3.13%, 01/23/25 (Call 10/23/24)(a) | 32,837 | 32,270,683 | ||||||
3.20%, 01/25/23 | 33,917 | 33,940,477 | ||||||
3.20%, 06/15/26 (Call 03/15/26)(a) | 23,220 | 22,556,282 | ||||||
3.22%, 03/01/25 (Call 03/01/24)(c)(d) | 18,927 | 18,702,337 | ||||||
3.25%, 09/23/22(a) | 34,920 | 35,101,137 | ||||||
3.30%, 04/01/26 (Call 01/01/26)(a) | 32,913 | 32,227,774 | ||||||
3.38%, 05/01/23(a) | 20,124 | 20,087,163 | ||||||
3.51%, 01/23/29 (Call 01/23/28)(a)(c)(d) | 31,023 | 30,142,819 | ||||||
3.54%, 05/01/28 (Call 05/01/27)(a)(c)(d) | 23,077 | 22,658,522 | ||||||
3.56%, 04/23/24 (Call 04/23/23)(c)(d) | 18,338 | 18,432,501 | ||||||
3.63%, 05/13/24(a) | 25,270 | 25,570,064 | ||||||
3.63%, 12/01/27 (Call 12/01/26)(a) | 16,977 | 16,427,833 | ||||||
3.78%, 02/01/28 (Call 02/01/27)(a)(c)(d) | 26,118 | 26,079,084 | ||||||
3.80%, 07/23/24 (Call 07/23/23)(a)(c)(d) | 26,562 | 26,969,079 | ||||||
3.88%, 02/01/24(a) | 20,661 | 21,176,331 | ||||||
3.88%, 09/10/24 | 28,699 | 29,018,552 | ||||||
3.88%, 07/24/38 (Call 07/24/37)(c)(d) | 28,717 | 27,239,651 | ||||||
3.90%, 07/15/25 (Call 04/15/25)(a) | 24,456 | 24,998,605 | ||||||
3.90%, 01/23/49 (Call 01/23/48)(c)(d) | 22,281 | 20,723,821 | ||||||
3.96%, 01/29/27 (Call 01/29/26)(a)(c)(d) | 22,375 | 22,703,798 | ||||||
3.96%, 11/15/48 (Call 11/15/47)(a)(c)(d) | 25,408 | 23,833,352 | ||||||
4.01%, 04/23/29 (Call 04/23/28)(c)(d) | 33,303 | 33,657,764 | ||||||
4.02%, 12/05/24 (Call 12/05/23)(a)(c)(d) | 5,240 | 5,364,651 | ||||||
4.03%, 07/24/48 (Call 07/24/47)(a)(c)(d) | 18,043 | 17,156,522 | ||||||
4.13%, 12/15/26(a) | 20,959 | 21,192,502 | ||||||
4.20%, 07/23/29 (Call 07/23/28)(c)(d) | 28,956 | 29,644,742 | ||||||
4.25%, 10/01/27(a) | 17,692 | 17,945,111 | ||||||
4.26%, 02/22/48 (Call 02/22/47)(c)(d) | 23,207 | 22,893,706 | ||||||
4.35%, 08/15/21(a) | 2,836 | 2,922,036 | ||||||
4.45%, 12/05/29 (Call 12/05/28)(a)(c)(d) | 555 | 581,040 | ||||||
4.50%, 01/24/22(a) | 30,005 | 31,215,015 | ||||||
4.85%, 02/01/44(a) | 17,233 | 18,548,927 | ||||||
4.95%, 06/01/45(a) | 20,919 | 22,186,442 | ||||||
5.40%, 01/06/42 | 14,958 | 17,086,305 | ||||||
5.50%, 10/15/40(a) | 15,658 | 18,063,263 | ||||||
5.60%, 07/15/41 | 19,810 | 23,176,620 | ||||||
5.63%, 08/16/43(a) | 17,916 | 20,527,436 | ||||||
6.40%, 05/15/38 | 31,820 | 39,924,681 | ||||||
KeyBank N.A./Cleveland OH | ||||||||
2.30%, 09/14/22(a) | 9,955 | 9,682,358 | ||||||
3.30%, 06/01/25 | 7,046 | 7,006,024 | ||||||
KeyCorp., 4.10%, 04/30/28(a) | 2,695 | 2,739,413 | ||||||
Lloyds Banking Group PLC | ||||||||
2.91%, 11/07/23 (Call 11/07/22)(c)(d) | 39,028 | 37,781,262 | ||||||
3.57%, 11/07/28 (Call 11/07/27)(a)(c)(d) | 20,529 | 19,299,705 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
3.75%, 01/11/27(a) | $ | 12,059 | $ | 11,636,596 | ||||
4.05%, 08/16/23(a) | 24,035 | 24,271,939 | ||||||
4.34%, 01/09/48 | 18,666 | 15,967,087 | ||||||
4.38%, 03/22/28(a) | 18,517 | 18,531,990 | ||||||
4.45%, 05/08/25 | 24,795 | 25,348,650 | ||||||
4.50%, 11/04/24(a) | 13,888 | 13,870,616 | ||||||
4.55%, 08/16/28(a) | 15,780 | 15,998,925 | ||||||
4.58%, 12/10/25(a) | 18,948 | 18,698,586 | ||||||
4.65%, 03/24/26(a) | 16,255 | 16,006,573 | ||||||
5.30%, 12/01/45(a) | 3,746 | 3,713,927 | ||||||
M&T Bank Corp., 3.55%, 07/26/23 (Call 06/26/23) | 2,505 | 2,544,663 | ||||||
Manufacturers & Traders Trust Co., 2.90%, 02/06/25 (Call 01/06/25)(a) | 2,316 | 2,267,523 | ||||||
Mitsubishi UFJ Financial Group Inc. | ||||||||
2.67%, 07/25/22(a) | 24,885 | 24,397,672 | ||||||
2.76%, 09/13/26(a) | 17,050 | 16,053,496 | ||||||
3.00%, 02/22/22(a) | 5,495 | 5,461,979 | ||||||
3.29%, 07/25/27 | 19,481 | 18,969,045 | ||||||
3.41%, 03/07/24 | 10,000 | 9,986,800 | ||||||
3.46%, 03/02/23 | 16,504 | 16,529,337 | ||||||
3.68%, 02/22/27(a) | 17,756 | 17,789,884 | ||||||
3.74%, 03/07/29 | 5,000 | 5,004,400 | ||||||
3.76%, 07/26/23(a) | 21,575 | 21,894,327 | ||||||
3.78%, 03/02/25 | 5,962 | 6,043,294 | ||||||
3.85%, 03/01/26 | 28,055 | 28,580,770 | ||||||
3.96%, 03/02/28 | 9,485 | 9,684,714 | ||||||
4.05%, 09/11/28(a) | 10,700 | 11,018,823 | ||||||
Mizuho Financial Group Inc. | ||||||||
2.27%, 09/13/21(a) | 2,814 | 2,738,435 | ||||||
2.60%, 09/11/22 | 8,802 | 8,563,840 | ||||||
2.84%, 09/13/26(a) | 13,729 | 13,002,056 | ||||||
2.95%, 02/28/22 | 18,020 | 17,837,924 | ||||||
3.17%, 09/11/27 | 20,806 | 20,103,325 | ||||||
3.55%, 03/05/23(a) | 7,085 | 7,116,184 | ||||||
3.92%, 09/11/24 (Call 09/11/23)(c)(d) | 14,639 | 14,896,477 | ||||||
4.02%, 03/05/28(a) | 12,323 | 12,638,712 | ||||||
4.25%, 09/11/29 (Call 09/11/28)(a)(c)(d) | 16,309 | 16,826,428 | ||||||
Morgan Stanley | ||||||||
2.63%, 11/17/21 | 25,643 | 25,286,947 | ||||||
2.75%, 05/19/22(a) | 16,829 | 16,602,950 | ||||||
3.13%, 01/23/23(a) | 34,047 | 33,814,742 | ||||||
3.13%, 07/27/26 | 38,667 | 36,856,375 | ||||||
3.59%, 07/22/28 (Call 07/22/27)(c)(d) | 39,155 | 38,092,357 | ||||||
3.63%, 01/20/27 | 36,568 | 35,979,347 | ||||||
3.70%, 10/23/24 | 34,465 | 34,631,942 | ||||||
3.74%, 04/24/24 (Call 04/24/23)(a)(c)(d) | 36,459 | 36,692,877 | ||||||
3.75%, 02/25/23 | 28,668 | 29,115,146 | ||||||
3.77%, 01/24/29 (Call 01/24/28)(a)(c)(d) | 32,673 | 32,151,559 | ||||||
3.88%, 01/27/26(a) | 41,120 | 41,274,040 | ||||||
3.95%, 04/23/27 | 25,159 | 24,576,164 | ||||||
3.97%, 07/22/38 (Call 07/22/37)(a)(c)(d) | 20,931 | 19,883,717 | ||||||
4.00%, 07/23/25 | 31,332 | 31,860,608 | ||||||
4.10%, 05/22/23(a) | 20,766 | 21,109,590 | ||||||
4.30%, 01/27/45 | 24,368 | 23,836,960 | ||||||
4.35%, 09/08/26(a) | 29,965 | 30,104,955 | ||||||
4.38%, 01/22/47(a) | 27,833 | 27,646,686 | ||||||
4.43%, 01/23/30 (Call 01/23/29)(c)(d) | 22,239 | 22,956,157 | ||||||
4.46%, 04/22/39 (Call 04/22/38)(c)(d) | 18,738 | 18,864,676 | ||||||
4.88%, 11/01/22(a) | 21,398 | 22,410,853 | ||||||
5.00%, 11/24/25(a) | 12,333 | 12,959,430 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
6.38%, 07/24/42 | $ | 24,992 | $ | 31,383,404 | ||||
7.25%, 04/01/32 | 12,795 | 16,575,792 | ||||||
Series F, 3.88%, 04/29/24 | 35,616 | 36,146,443 | ||||||
National Australia Bank Ltd./New York | ||||||||
2.50%, 05/22/22(a) | 12,479 | 12,210,418 | ||||||
2.50%, 07/12/26 | 16,026 | 14,767,680 | ||||||
2.80%, 01/10/22 | 11,098 | 10,997,906 | ||||||
3.00%, 01/20/23(a) | 14,116 | 13,967,710 | ||||||
3.38%, 01/14/26(a) | 5,063 | 4,980,622 | ||||||
3.63%, 06/20/23(a) | 11,060 | 11,189,335 | ||||||
Northern Trust Corp., 3.95%, 10/30/25(a) | 16,606 | 17,238,938 | ||||||
PNC Bank N.A. | ||||||||
2.45%, 07/28/22 (Call 06/28/22)(a) | 1,367 | 1,340,971 | ||||||
2.55%, 12/09/21 (Call 11/09/21) | 7,262 | 7,166,354 | ||||||
2.63%, 02/17/22 (Call 01/18/22)(a) | 20,147 | 20,011,344 | ||||||
2.70%, 11/01/22 (Call 10/01/22)(a) | 7,819 | 7,656,330 | ||||||
2.95%, 01/30/23 (Call 12/30/22)(a) | 2,273 | 2,242,407 | ||||||
2.95%, 02/23/25 (Call 01/24/25) | 7,737 | 7,584,453 | ||||||
3.10%, 10/25/27 (Call 09/25/27) | 23,787 | 23,151,485 | ||||||
3.25%, 06/01/25 (Call 05/02/25) | 17,433 | 17,354,872 | ||||||
3.50%, 06/08/23 (Call 05/09/23) | 13,245 | 13,397,894 | ||||||
3.80%, 07/25/23 (Call 06/25/23) | 7,459 | 7,575,589 | ||||||
4.05%, 07/26/28(a) | 16,680 | 17,150,775 | ||||||
PNC Financial Services Group Inc. (The) | ||||||||
3.15%, 05/19/27 (Call 04/19/27) | 3,083 | 3,017,819 | ||||||
3.30%, 03/08/22 (Call 02/06/22)(a) | 10,626 | 10,696,619 | ||||||
3.50%, 01/23/24 (Call 12/23/23)(a) | 768 | 773,337 | ||||||
3.90%, 04/29/24 (Call 03/29/24)(a) | 3,045 | 3,098,300 | ||||||
Regions Financial Corp. | ||||||||
2.75%, 08/14/22 (Call 07/14/22)(a) | 18,335 | 17,962,757 | ||||||
3.80%, 08/14/23 (Call 07/14/23) | 25 | 25,267 | ||||||
Royal Bank of Canada | ||||||||
2.75%, 02/01/22(a) | 8,674 | 8,649,298 | ||||||
3.70%, 10/05/23(a) | 20,401 | 20,733,155 | ||||||
4.65%, 01/27/26(a) | 11,779 | 12,332,204 | ||||||
Royal Bank of Scotland Group PLC | ||||||||
3.50%, 05/15/23 (Call 05/15/22)(a)(c)(d) | 20,831 | 20,546,032 | ||||||
3.88%, 09/12/23(a) | 26,912 | 26,672,943 | ||||||
4.52%, 06/25/24 (Call 06/25/23)(c)(d) | 9,412 | 9,481,679 | ||||||
4.80%, 04/05/26(a) | 23,724 | 24,072,090 | ||||||
4.89%, 05/18/29 (Call 05/18/28)(a)(c)(d) | 31,242 | 31,602,120 | ||||||
5.08%, 01/27/30 (Call 01/27/29)(a)(c)(d) | 12,572 | 12,889,039 | ||||||
5.13%, 05/28/24 | 22,923 | 23,215,119 | ||||||
6.00%, 12/19/23(a) | 19,225 | 20,194,882 | ||||||
6.10%, 06/10/23 | 17,821 | 18,703,075 | ||||||
6.13%, 12/15/22 | 34,115 | 35,986,017 | ||||||
Santander Holdings USA Inc. | ||||||||
3.40%, 01/18/23 (Call 12/18/22)(a) | 3,313 | 3,251,936 | ||||||
3.70%, 03/28/22 (Call 02/28/22)(a) | 13,847 | 13,854,256 | ||||||
4.40%, 07/13/27 (Call 04/14/27)(a) | 20,704 | 20,217,394 | ||||||
4.50%, 07/17/25 (Call 04/17/25)(a) | 11,873 | 12,050,378 | ||||||
Santander UK Group Holdings PLC | ||||||||
3.37%, 01/05/24 (Call 01/05/23)(c)(d) | 12,807 | 12,417,726 | ||||||
3.57%, 01/10/23 (Call 01/10/22)(a) | 16,321 | 16,093,160 | ||||||
3.82%, 11/03/28 (Call 11/03/27)(c)(d) | 12,749 | 12,003,881 | ||||||
4.80%, 11/15/24 (Call 11/15/23)(c)(d) | 8,748 | 8,914,858 | ||||||
Santander UK PLC, 4.00%, 03/13/24(a) | 15,660 | 16,229,338 | ||||||
State Street Corp. | ||||||||
2.65%, 05/19/26(a) | 10,619 | 10,143,214 | ||||||
3.10%, 05/15/23 | 11,110 | 11,049,776 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
3.30%, 12/16/24(a) | $ | 11,522 | $ | 11,664,329 | ||||
3.55%, 08/18/25(a) | 10,450 | 10,700,879 | ||||||
3.70%, 11/20/23(a) | 2,883 | 2,944,313 | ||||||
Sumitomo Mitsui Banking Corp., 3.20%, 07/18/22 | 4,768 | 4,752,181 | ||||||
Sumitomo Mitsui Financial Group Inc. | ||||||||
2.44%, 10/19/21(a) | 2,349 | 2,303,476 | ||||||
2.63%, 07/14/26(a) | 27,672 | 25,944,163 | ||||||
2.78%, 07/12/22 | 20,887 | 20,578,537 | ||||||
2.78%, 10/18/22(a) | 18,933 | 18,608,185 | ||||||
2.85%, 01/11/22 | 3,688 | 3,650,805 | ||||||
3.01%, 10/19/26(a) | 14,505 | 13,903,306 | ||||||
3.10%, 01/17/23(a) | 21,218 | 21,039,016 | ||||||
3.35%, 10/18/27(a) | 6,408 | 6,263,717 | ||||||
3.36%, 07/12/27 | 21,132 | 20,725,989 | ||||||
3.45%, 01/11/27(a) | 18,239 | 17,988,436 | ||||||
3.54%, 01/17/28 | 15,580 | 15,442,358 | ||||||
3.75%, 07/19/23 | 5,350 | 5,416,244 | ||||||
3.78%, 03/09/26 | 20,702 | 20,924,621 | ||||||
3.94%, 10/16/23 | 750 | 766,988 | ||||||
4.31%, 10/16/28(a) | 1,640 | 1,725,720 | ||||||
SunTrust Bank/Atlanta GA | ||||||||
2.45%, 08/01/22 (Call 07/01/22) | 12,318 | 12,068,184 | ||||||
3.30%, 05/15/26 (Call 04/15/26) | 10,408 | 10,118,928 | ||||||
SunTrust Banks Inc. | ||||||||
2.70%, 01/27/22 (Call 12/27/21)(a) | 7,435 | 7,352,871 | ||||||
4.00%, 05/01/25 (Call 03/01/25) | 11,294 | 11,660,551 | ||||||
Synchrony Bank, 3.00%, 06/15/22 (Call 05/15/22) | 9,509 | 9,211,140 | ||||||
Toronto-Dominion Bank (The) | ||||||||
1.80%, 07/13/21(a) | 8,387 | 8,163,387 | ||||||
3.50%, 07/19/23(a) | 5,845 | 5,939,819 | ||||||
U.S. Bancorp. | ||||||||
2.95%, 07/15/22 (Call 06/15/22)(a) | 18,836 | 18,721,210 | ||||||
3.00%, 03/15/22 (Call 02/15/22)(a) | 6,533 | 6,536,997 | ||||||
3.10%, 04/27/26 (Call 03/27/26)(a) | 10,768 | 10,526,661 | ||||||
3.60%, 09/11/24 (Call 08/11/24) | 10,532 | 10,690,931 | ||||||
3.70%, 01/30/24 (Call 12/29/23)(a) | 5,253 | 5,404,993 | ||||||
3.90%, 04/26/28 (Call 03/24/28)(a) | 9,955 | 10,362,694 | ||||||
3.95%, 11/17/25 (Call 10/17/25) | 2,885 | 3,001,224 | ||||||
Series V, 2.38%, 07/22/26 (Call 06/22/26) | 15,405 | 14,462,114 | ||||||
Series V, 2.63%, 01/24/22 | 12,027 | 11,948,710 | ||||||
Series X, 3.15%, 04/27/27 | 20,712 | 20,395,413 | ||||||
U.S. Bank N.A./Cincinnati OH | ||||||||
2.80%, 01/27/25 (Call 12/27/24)(a) | 10,879 | 10,629,059 | ||||||
2.85%, 01/23/23 (Call 12/23/22)(a) | 16,294 | 16,188,785 | ||||||
3.40%, 07/24/23 (Call 06/23/23)(a) | 6,395 | 6,459,247 | ||||||
Wachovia Corp., 5.50%, 08/01/35 | 11,542 | 12,753,329 | ||||||
Wells Fargo & Co. | ||||||||
2.63%, 07/22/22(a) | 42,448 | 41,669,707 | ||||||
3.00%, 02/19/25 | 27,743 | 26,994,721 | ||||||
3.00%, 04/22/26 | 45,215 | 43,274,729 | ||||||
3.00%, 10/23/26(a) | 47,318 | 45,105,349 | ||||||
3.07%, 01/24/23 (Call 01/24/22)(a) | 49,898 | 49,575,454 | ||||||
3.30%, 09/09/24(a) | 28,564 | 28,399,197 | ||||||
3.50%, 03/08/22(a) | 23,887 | 24,114,524 | ||||||
3.55%, 09/29/25 | 31,407 | 31,389,742 | ||||||
3.58%, 05/22/28 (Call 05/22/27)(a)(c)(d) | 34,383 | 33,976,249 | ||||||
3.75%, 01/24/24 (Call 12/24/23) | 28,957 | 29,440,686 | ||||||
3.90%, 05/01/45(a) | 20,014 | 19,220,661 | ||||||
4.10%, 06/03/26(a) | 30,387 | 30,625,650 | ||||||
4.13%, 08/15/23(a) | 8,454 | 8,635,701 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
4.15%, 01/24/29 (Call 10/24/28)(a) | $ | 23,052 | $ | 23,583,554 | ||||
4.30%, 07/22/27(a) | 23,205 | 23,592,366 | ||||||
4.40%, 06/14/46(a) | 20,920 | 20,075,453 | ||||||
4.65%, 11/04/44(a) | 21,932 | 21,821,215 | ||||||
4.75%, 12/07/46(a) | 29,460 | 29,730,785 | ||||||
4.90%, 11/17/45 | 24,598 | 25,323,061 | ||||||
5.38%, 02/07/35 | 4,124 | 4,701,719 | ||||||
5.38%, 11/02/43(a) | 27,416 | 29,891,023 | ||||||
5.61%, 01/15/44 | 29,083 | 32,666,593 | ||||||
Series M, 3.45%, 02/13/23(a) | 32,611 | 32,662,780 | ||||||
Wells Fargo Bank N.A. | ||||||||
3.55%, 08/14/23 (Call 07/14/23) | 15,270 | 15,471,996 | ||||||
5.85%, 02/01/37(a) | 9,756 | 11,424,101 | ||||||
6.60%, 01/15/38(a) | 21,143 | 26,937,326 | ||||||
Westpac Banking Corp. | ||||||||
2.00%, 08/19/21(a) | 2,191 | 2,134,462 | ||||||
2.50%, 06/28/22(a) | 7,729 | 7,569,051 | ||||||
2.70%, 08/19/26 | 12,530 | 11,787,704 | ||||||
2.75%, 01/11/23(a) | 3,833 | 3,765,612 | ||||||
2.80%, 01/11/22(a) | 10,847 | 10,771,484 | ||||||
2.85%, 05/13/26(a) | 25,779 | 24,535,627 | ||||||
3.30%, 02/26/24(e) | 11,370 | 11,327,065 | ||||||
3.35%, 03/08/27(a) | 19,137 | 18,770,274 | ||||||
3.40%, 01/25/28(a) | 13,270 | 13,076,972 | ||||||
3.65%, 05/15/23 | 6,583 | 6,674,950 | ||||||
|
| |||||||
8,289,500,622 | ||||||||
Beverages — 3.2% | ||||||||
Anheuser-Busch Companies LLC/Anheuser-Busch InBev Worldwide Inc. | ||||||||
3.65%, 02/01/26 (Call 11/01/25)(b) | 63,698 | 63,255,668 | ||||||
4.70%, 02/01/36 (Call 08/01/35)(a)(b) | 63,786 | 61,588,528 | ||||||
4.90%, 02/01/46 (Call 08/01/45)(b) | 120,773 | 115,653,191 | ||||||
Anheuser-Busch InBev Finance Inc. | ||||||||
2.63%, 01/17/23 | 1 | 491 | ||||||
3.30%, 02/01/23 (Call 12/01/22) | 71,215 | 71,848,457 | ||||||
3.70%, 02/01/24 | 8,098 | 8,258,081 | ||||||
4.00%, 01/17/43(a) | 4,887 | 4,115,915 | ||||||
4.63%, 02/01/44 | 10,541 | 9,643,511 | ||||||
4.90%, 02/01/46 (Call 08/01/45)(a) | 3,125 | 2,996,525 | ||||||
Anheuser-Busch InBev Worldwide Inc. | ||||||||
3.75%, 07/15/42(a) | 5,755 | 4,732,797 | ||||||
4.00%, 04/13/28 (Call 01/13/28)(a) | 36,677 | 36,449,207 | ||||||
4.15%, 01/23/25 (Call 12/23/24)(a) | 28,410 | 29,338,842 | ||||||
4.38%, 04/15/38 (Call 10/15/37)(a) | 18,464 | 16,998,795 | ||||||
4.44%, 10/06/48 (Call 04/06/48) | 21,770 | 19,536,217 | ||||||
4.60%, 04/15/48 (Call 10/15/47)(a) | 27,496 | 25,269,968 | ||||||
4.75%, 01/23/29 (Call 10/23/28)(a) | 35,285 | 36,840,571 | ||||||
4.75%, 04/15/58 (Call 10/15/57)(a) | 18,688 | 16,917,949 | ||||||
4.90%, 01/23/31 (Call 10/23/30)(a) | 10,250 | 10,737,730 | ||||||
4.95%, 01/15/42 | 14,319 | 14,023,705 | ||||||
5.45%, 01/23/39 (Call 07/23/38) | 30,000 | 31,449,027 | ||||||
5.55%, 01/23/49 (Call 07/23/48) | 47,215 | 49,541,378 | ||||||
5.80%, 01/23/59 (Call 07/23/58) | 30,407 | 32,316,186 | ||||||
8.20%, 01/15/39(a) | 7,199 | 9,583,513 | ||||||
Coca-Cola Co. (The) | ||||||||
1.55%, 09/01/21(a) | 1,749 | 1,700,910 | ||||||
2.25%, 09/01/26(a) | 14,609 | 13,554,574 | ||||||
2.50%, 04/01/23(a) | 10,084 | 10,002,167 | ||||||
2.88%, 10/27/25(a) | 20,790 | 20,566,449 | ||||||
3.20%, 11/01/23(a) | 16,713 | 17,019,759 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Beverages (continued) | ||||||||
3.30%, 09/01/21(a) | $ | 1,940 | $ | 1,967,291 | ||||
Constellation Brands Inc., 4.25%, 05/01/23(a) | 15,889 | 16,360,191 | ||||||
Diageo Capital PLC, 2.63%, 04/29/23 (Call 01/29/23) | 20,175 | 19,877,403 | ||||||
Diageo Investment Corp., 2.88%, 05/11/22(a) | 6,281 | 6,274,287 | ||||||
Keurig Dr Pepper Inc. | ||||||||
4.06%, 05/25/23 (Call 04/25/23)(a)(b) | 17,868 | 18,070,507 | ||||||
4.42%, 05/25/25 (Call 03/25/25)(b) | 6,583 | 6,695,763 | ||||||
4.60%, 05/25/28 (Call 02/25/28)(a)(b) | 32,189 | 32,425,634 | ||||||
5.09%, 05/25/48 (Call 11/25/47)(a)(b) | 14,597 | 14,176,379 | ||||||
Molson Coors Brewing Co. | ||||||||
2.10%, 07/15/21 (Call 06/15/21)(a) | 3,861 | 3,756,563 | ||||||
3.00%, 07/15/26 (Call 04/15/26)(a) | 10,086 | 9,271,494 | ||||||
4.20%, 07/15/46 (Call 01/15/46)(a) | 23,327 | 19,736,823 | ||||||
5.00%, 05/01/42(a) | 13,907 | 13,238,855 | ||||||
PepsiCo Inc. | ||||||||
1.70%, 10/06/21 (Call 09/06/21)(a) | 2,253 | 2,191,595 | ||||||
2.25%, 05/02/22 (Call 04/02/22) | 10,863 | 10,695,081 | ||||||
2.38%, 10/06/26 (Call 07/06/26) | 13,619 | 12,745,931 | ||||||
2.75%, 03/05/22(a) | 2,417 | 2,417,765 | ||||||
2.75%, 03/01/23(a) | 6,883 | 6,872,962 | ||||||
2.75%, 04/30/25 (Call 01/30/25)(a) | 9,389 | 9,245,520 | ||||||
2.85%, 02/24/26 (Call 11/24/25)(a) | 4,621 | 4,496,308 | ||||||
3.00%, 08/25/21(a) | 2,803 | 2,821,056 | ||||||
3.00%, 10/15/27 (Call 07/15/27) | 7,273 | 7,059,905 | ||||||
3.10%, 07/17/22 (Call 05/17/22) | 12,167 | 12,294,155 | ||||||
3.45%, 10/06/46 (Call 04/06/46)(a) | 18,889 | 17,228,428 | ||||||
3.60%, 03/01/24 (Call 12/01/23)(a) | 17,629 | 18,185,154 | ||||||
4.00%, 03/05/42(a) | 11,489 | 11,479,383 | ||||||
4.00%, 05/02/47 (Call 11/02/46)(a) | 12,537 | 12,463,865 | ||||||
4.45%, 04/14/46 (Call 10/14/45)(a) | 20,508 | 21,893,424 | ||||||
|
| |||||||
1,047,881,833 | ||||||||
Biotechnology — 2.0% | ||||||||
Amgen Inc. | ||||||||
2.25%, 08/19/23 (Call 06/19/23)(a) | 3,348 | 3,221,343 | ||||||
2.60%, 08/19/26 (Call 05/19/26)(a) | 16,517 | 15,306,104 | ||||||
2.65%, 05/11/22 (Call 04/11/22)(a) | 14,150 | 13,940,110 | ||||||
3.13%, 05/01/25 (Call 02/01/25)(a) | 14,496 | 14,183,610 | ||||||
3.20%, 11/02/27 (Call 08/02/27)(a) | 13,029 | 12,441,150 | ||||||
3.63%, 05/15/22 (Call 02/15/22) | 5,606 | 5,682,862 | ||||||
3.63%, 05/22/24 (Call 02/22/24)(a) | 20,232 | 20,506,690 | ||||||
4.40%, 05/01/45 (Call 11/01/44) | 29,127 | 27,244,991 | ||||||
4.56%, 06/15/48 (Call 12/15/47)(a) | 19,235 | 18,299,400 | ||||||
4.66%, 06/15/51 (Call 12/15/50)(a) | 37,881 | 36,362,389 | ||||||
5.15%, 11/15/41 (Call 05/15/41) | 15,654 | 16,212,890 | ||||||
Baxalta Inc., 4.00%, 06/23/25 (Call 03/23/25) | 16,477 | 16,420,500 | ||||||
Biogen Inc. | ||||||||
3.63%, 09/15/22(a) | 12,478 | 12,655,186 | ||||||
4.05%, 09/15/25 (Call 06/15/25) | 18,313 | 18,617,549 | ||||||
5.20%, 09/15/45 (Call 03/15/45) | 16,890 | 17,635,937 | ||||||
Celgene Corp. | ||||||||
2.75%, 02/15/23 (Call 01/15/23) | 12,725 | 12,411,058 | ||||||
3.25%, 08/15/22 | 8,974 | 8,935,082 | ||||||
3.25%, 02/20/23 (Call 01/20/23) | 9,255 | 9,185,774 | ||||||
3.45%, 11/15/27 (Call 08/15/27) | 15,218 | 14,439,354 | ||||||
3.55%, 08/15/22 | 11,379 | 11,434,454 | ||||||
3.63%, 05/15/24 (Call 02/15/24)(a) | 13,277 | 13,246,236 | ||||||
3.88%, 08/15/25 (Call 05/15/25) | 37,982 | 38,065,158 | ||||||
3.90%, 02/20/28 (Call 11/20/27)(a) | 17,100 | 16,763,956 | ||||||
4.35%, 11/15/47 (Call 05/15/47)(a) | 14,908 | 13,375,458 | ||||||
4.55%, 02/20/48 (Call 08/20/47)(a) | 17,895 | 16,575,637 |
Security | Par (000) | Value | ||||||
Biotechnology (continued) | ||||||||
4.63%, 05/15/44 (Call 11/15/43)(a) | $ | 6,262 | $ | 5,846,447 | ||||
5.00%, 08/15/45 (Call 02/15/45) | 23,217 | 22,857,740 | ||||||
Gilead Sciences Inc. | ||||||||
2.50%, 09/01/23 (Call 07/01/23) | 3,705 | 3,582,934 | ||||||
2.95%, 03/01/27 (Call 12/01/26) | 8,619 | 8,157,504 | ||||||
3.25%, 09/01/22 (Call 07/01/22) | 12,803 | 12,870,796 | ||||||
3.50%, 02/01/25 (Call 11/01/24)(a) | 14,903 | 14,894,942 | ||||||
3.65%, 03/01/26 (Call 12/01/25)(a) | 34,619 | 34,472,354 | ||||||
3.70%, 04/01/24 (Call 01/01/24) | 27,636 | 28,117,286 | ||||||
4.00%, 09/01/36 (Call 03/01/36)(a) | 13,347 | 12,379,759 | ||||||
4.15%, 03/01/47 (Call 09/01/46)(a) | 17,183 | 15,721,985 | ||||||
4.40%, 12/01/21 (Call 09/01/21)(a) | 4,703 | 4,862,667 | ||||||
4.50%, 02/01/45 (Call 08/01/44)(a) | 25,776 | 24,936,311 | ||||||
4.60%, 09/01/35 (Call 03/01/35) | 13,501 | 13,467,230 | ||||||
4.75%, 03/01/46 (Call 09/01/45)(a) | 18,551 | 18,615,665 | ||||||
4.80%, 04/01/44 (Call 10/01/43) | 21,671 | 21,813,415 | ||||||
5.65%, 12/01/41 (Call 06/01/41)(a) | 14,978 | 16,650,451 | ||||||
|
| |||||||
662,410,364 | ||||||||
Chemicals — 1.2% | ||||||||
Dow Chemical Co. (The) | ||||||||
3.00%, 11/15/22 (Call 08/15/22)(a) | 20,461 | 20,336,935 | ||||||
3.50%, 10/01/24 (Call 07/01/24)(a) | 10,093 | 9,995,499 | ||||||
4.13%, 11/15/21 (Call 08/15/21)(a) | 5,029 | 5,143,574 | ||||||
4.38%, 11/15/42 (Call 05/15/42)(a) | 12,745 | 11,435,240 | ||||||
5.25%, 11/15/41 (Call 05/15/41)(a) | 12,540 | 12,601,188 | ||||||
7.38%, 11/01/29(a) | 13,301 | 16,355,886 | ||||||
9.40%, 05/15/39(a) | 11,283 | 16,479,192 | ||||||
DowDuPont Inc. | ||||||||
4.21%, 11/15/23 (Call 10/15/23) | 26,655 | 27,502,704 | ||||||
4.49%, 11/15/25 (Call 09/15/25) | 27,538 | 28,749,201 | ||||||
4.73%, 11/15/28 (Call 08/15/28)(a) | 29,325 | 30,644,766 | ||||||
5.32%, 11/15/38 (Call 05/15/38) | 20,315 | 21,456,920 | ||||||
5.42%, 11/15/48 (Call 05/15/48)(a) | 26,728 | 28,507,601 | ||||||
Eastman Chemical Co. | ||||||||
3.60%, 08/15/22 (Call 05/15/22)(a) | 14,777 | 14,887,816 | ||||||
3.80%, 03/15/25 (Call 12/15/24)(a) | 645 | 640,920 | ||||||
4.65%, 10/15/44 (Call 04/15/44)(a) | 6,669 | 6,166,915 | ||||||
LYB International Finance BV | ||||||||
4.00%, 07/15/23(a) | 12,300 | 12,395,170 | ||||||
4.88%, 03/15/44 (Call 09/15/43)(a) | 10,426 | 9,786,058 | ||||||
5.25%, 07/15/43 | 12,227 | 11,961,389 | ||||||
LYB International Finance II BV, 3.50%, 03/02/27 (Call 12/02/26)(a) | 5,497 | 5,132,289 | ||||||
LyondellBasell Industries NV | ||||||||
4.63%, 02/26/55 (Call 08/26/54)(a) | 10,719 | 9,186,995 | ||||||
5.75%, 04/15/24 (Call 01/15/24) | 13,274 | 14,229,316 | ||||||
6.00%, 11/15/21 (Call 08/17/21) | 2,902 | 3,069,162 | ||||||
Mosaic Co. (The), 4.25%, 11/15/23 (Call 08/15/23)(a) | 13,403 | 13,763,712 | ||||||
Rohm & Haas Co., 7.85%, 07/15/29(a) | 12,223 | 15,256,619 | ||||||
Sherwin-Williams Co. (The) | ||||||||
2.75%, 06/01/22 (Call 05/01/22)(a) | 6,667 | 6,557,258 | ||||||
3.45%, 06/01/27 (Call 03/01/27)(a) | 26,638 | 25,344,888 | ||||||
4.50%, 06/01/47 (Call 12/01/46)(a) | 7,726 | 7,199,353 | ||||||
|
| |||||||
384,786,566 | ||||||||
Commercial Services — 0.2% | ||||||||
Automatic Data Processing Inc., 3.38%, 09/15/25 (Call 06/15/25)(a) | 15,797 | 16,094,715 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Commercial Services (continued) | ||||||||
Ecolab Inc. | ||||||||
2.70%, 11/01/26 (Call 08/01/26) | $ | 11,712 | $ | 11,104,725 | ||||
3.95%, 12/01/47 (Call 06/01/47) | 301 | 292,437 | ||||||
4.35%, 12/08/21(a) | 5,586 | 5,786,422 | ||||||
5.50%, 12/08/41(a) | 703 | 817,680 | ||||||
IHS Markit Ltd., 4.75%, 08/01/28 (Call 05/01/28) | 1,155 | 1,164,185 | ||||||
S&P Global Inc., 4.40%, 02/15/26 (Call 11/15/25) | 15,518 | 16,198,317 | ||||||
Total System Services Inc., 4.80%, 04/01/26 (Call 01/01/26)(a) | 4,094 | 4,195,579 | ||||||
|
| |||||||
55,654,060 | ||||||||
Computers — 3.1% | ||||||||
Apple Inc. | ||||||||
1.55%, 08/04/21 (Call 07/04/21)(a) | 2,980 | 2,897,168 | ||||||
2.10%, 09/12/22 (Call 08/12/22) | 5,681 | 5,552,361 | ||||||
2.15%, 02/09/22 | 13,633 | 13,414,636 | ||||||
2.30%, 05/11/22 (Call 04/11/22) | 13,309 | 13,111,600 | ||||||
2.40%, 01/13/23 (Call 12/13/22)(a) | 3,959 | 3,894,779 | ||||||
2.40%, 05/03/23(a) | 62,905 | 61,699,935 | ||||||
2.45%, 08/04/26 (Call 05/04/26) | 27,029 | 25,602,493 | ||||||
2.50%, 02/09/22 (Call 01/09/22) | 7,048 | 7,003,491 | ||||||
2.50%, 02/09/25(a) | 18,975 | 18,361,612 | ||||||
2.70%, 05/13/22(a) | 15,241 | 15,198,456 | ||||||
2.75%, 01/13/25 (Call 11/13/24) | 16,901 | 16,588,200 | ||||||
2.85%, 02/23/23 (Call 12/23/22)(a) | 18,593 | 18,595,534 | ||||||
2.85%, 05/11/24 (Call 03/11/24)(a) | 17,419 | 17,296,935 | ||||||
2.90%, 09/12/27 (Call 06/12/27)(a) | 24,510 | 23,658,224 | ||||||
3.00%, 02/09/24 (Call 12/09/23) | 26,084 | 26,100,143 | ||||||
3.00%, 06/20/27 (Call 03/20/27)(a) | 9,196 | 8,957,896 | ||||||
3.00%, 11/13/27 (Call 08/13/27) | 10,849 | 10,541,865 | ||||||
3.20%, 05/13/25(a) | 24,114 | 24,207,507 | ||||||
3.20%, 05/11/27 (Call 02/11/27)(a) | 17,862 | 17,639,984 | ||||||
3.25%, 02/23/26 (Call 11/23/25)(a) | 32,120 | 32,139,796 | ||||||
3.35%, 02/09/27 (Call 11/09/26)(a) | 20,326 | 20,298,316 | ||||||
3.45%, 05/06/24(a) | 29,089 | 29,708,052 | ||||||
3.45%, 02/09/45 | 17,844 | 16,111,058 | ||||||
3.75%, 09/12/47 (Call 03/12/47) | 20,911 | 19,749,800 | ||||||
3.75%, 11/13/47 (Call 05/13/47)(a) | 12,845 | 12,142,769 | ||||||
3.85%, 05/04/43 | 38,318 | 37,039,049 | ||||||
3.85%, 08/04/46 (Call 02/04/46) | 20,507 | 19,727,164 | ||||||
4.25%, 02/09/47 (Call 08/09/46)(a) | 17,847 | 18,231,713 | ||||||
4.38%, 05/13/45 | 26,109 | 27,044,984 | ||||||
4.45%, 05/06/44 | 14,428 | 15,147,979 | ||||||
4.50%, 02/23/36 (Call 08/23/35)(a) | 20,874 | 22,404,492 | ||||||
4.65%, 02/23/46 (Call 08/23/45)(a) | 49,001 | 52,628,897 | ||||||
Dell International LLC/EMC Corp. | ||||||||
4.42%, 06/15/21 (Call 05/15/21)(b) | 3,199 | 3,249,978 | ||||||
5.45%, 06/15/23 (Call 04/15/23)(a)(b) | 31,194 | 32,775,470 | ||||||
6.02%, 06/15/26 (Call 03/15/26)(a)(b) | 62,066 | 65,831,668 | ||||||
8.10%, 07/15/36 (Call 01/15/36)(a)(b) | 20,765 | 23,744,402 | ||||||
8.35%, 07/15/46 (Call 01/15/46)(b) | 22,504 | 26,312,746 | ||||||
Hewlett Packard Enterprise Co. | ||||||||
4.40%, 10/15/22 (Call 08/15/22) | 17,643 | 18,270,584 | ||||||
4.90%, 10/15/25 (Call 07/15/25)(a) | 34,092 | 35,452,053 | ||||||
6.20%, 10/15/35 (Call 04/15/35)(a) | 4,659 | 4,798,945 | ||||||
6.35%, 10/15/45 (Call 04/15/45) | 15,922 | 16,091,388 | ||||||
HP Inc., 6.00%, 09/15/41(a) | 12,434 | 12,620,013 | ||||||
IBM Credit LLC, 3.00%, 02/06/23(a) | 12,521 | 12,462,375 | ||||||
International Business Machines Corp. | ||||||||
1.88%, 08/01/22(a) | 12,834 | 12,348,524 | ||||||
2.88%, 11/09/22(a) | 10,737 | 10,660,097 |
Security | Par (000) | Value | ||||||
Computers (continued) | ||||||||
3.38%, 08/01/23(a) | $ | 16,857 | $ | 16,980,415 | ||||
3.45%, 02/19/26(a) | 15,271 | 15,281,568 | ||||||
3.63%, 02/12/24(a) | 20,897 | 21,254,880 | ||||||
4.00%, 06/20/42(a) | 16,175 | 15,359,985 | ||||||
Seagate HDD Cayman | ||||||||
4.25%, 03/01/22 (Call 02/01/22) | 2,608 | 2,602,703 | ||||||
4.75%, 06/01/23(a) | 12,123 | 12,158,394 | ||||||
4.75%, 01/01/25(a) | 14,072 | 13,544,300 | ||||||
|
| |||||||
1,024,497,376 | ||||||||
Cosmetics & Personal Care — 0.4% | ||||||||
Procter & Gamble Co. (The) | ||||||||
1.70%, 11/03/21(a) | 3,759 | 3,667,574 | ||||||
2.15%, 08/11/22(a) | 13,069 | 12,829,526 | ||||||
2.30%, 02/06/22(a) | 10,101 | 9,996,462 | ||||||
2.45%, 11/03/26(a) | 4,069 | 3,873,025 | ||||||
2.85%, 08/11/27(a) | 12,936 | 12,633,789 | ||||||
3.10%, 08/15/23(a) | 15,516 | 15,773,455 | ||||||
5.55%, 03/05/37 | 765 | 946,257 | ||||||
Unilever Capital Corp. | ||||||||
2.20%, 05/05/22 (Call 04/05/22)(a) | 3,494 | 3,420,010 | ||||||
2.90%, 05/05/27 (Call 02/05/27)(a) | 16,869 | 16,229,321 | ||||||
3.50%, 03/22/28 (Call 12/22/27)(a) | 16,739 | 16,823,252 | ||||||
5.90%, 11/15/32(a) | 19,505 | 23,838,391 | ||||||
|
| |||||||
120,031,062 | ||||||||
Diversified Financial Services — 3.1% | ||||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | ||||||||
3.50%, 01/15/25 (Call 11/15/24)(a) | 8,199 | 7,733,162 | ||||||
3.65%, 07/21/27 (Call 04/21/27) | 16,822 | 15,172,161 | ||||||
3.95%, 02/01/22 (Call 01/01/22)(a) | 1,450 | 1,454,224 | ||||||
5.00%, 10/01/21 | 4,451 | 4,572,079 | ||||||
Air Lease Corp., 3.00%, 09/15/23 (Call 07/15/23)(a) | 11,298 | 10,807,435 | ||||||
American Express Co. | ||||||||
2.50%, 08/01/22 (Call 07/01/22)(a) | 24,456 | 23,956,670 | ||||||
2.65%, 12/02/22(a) | 20,654 | 20,325,331 | ||||||
3.00%, 10/30/24 (Call 09/29/24)(a) | 31,394 | 30,701,247 | ||||||
3.40%, 02/27/23 (Call 01/27/23)(a) | 13,147 | 13,220,923 | ||||||
3.40%, 02/22/24 (Call 01/22/24) | 12,335 | 12,368,010 | ||||||
3.70%, 08/03/23 (Call 07/03/23)(a) | 10,013 | 10,195,798 | ||||||
4.05%, 12/03/42 | 14,164 | 13,930,399 | ||||||
4.20%, 11/06/25 (Call 10/06/25)(a) | 12,599 | 13,085,024 | ||||||
American Express Credit Corp. | ||||||||
2.70%, 03/03/22 (Call 01/31/22)(a) | 15,221 | 15,129,590 | ||||||
3.30%, 05/03/27 (Call 04/03/27)(a) | 28,006 | 27,749,118 | ||||||
Ameriprise Financial Inc., | 11,012 | 11,322,712 | ||||||
Brookfield Finance Inc., 4.70%, 09/20/47 (Call 03/20/47) | 18,615 | 16,919,978 | ||||||
Brookfield Finance LLC, 4.00%, 04/01/24 (Call 02/01/24)(a) | 14,315 | 14,306,802 | ||||||
Capital One Bank USA N.A., 3.38%, 02/15/23(a) | 19,097 | 18,808,696 | ||||||
Capital One Financial Corp. | ||||||||
3.05%, 03/09/22 (Call 02/09/22)(a) | 3,822 | 3,793,958 | ||||||
3.20%, 01/30/23 (Call 12/30/22) | 26,720 | 26,333,188 | ||||||
3.20%, 02/05/25 (Call 01/05/25)(a) | 6,607 | 6,342,084 | ||||||
3.30%, 10/30/24 (Call 09/30/24) | 18,080 | 17,481,436 | ||||||
3.50%, 06/15/23(a) | 7,443 | 7,375,673 | ||||||
3.75%, 04/24/24 (Call 03/24/24)(a) | 3,725 | 3,723,427 | ||||||
3.75%, 07/28/26 (Call 06/28/26)(a) | 27,372 | 26,014,305 | ||||||
3.75%, 03/09/27 (Call 02/09/27)(a) | 30,326 | 29,121,739 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Diversified Financial Services (continued) | ||||||||
3.80%, 01/31/28 (Call 12/31/27)(a) | $ | 12,581 | $ | 12,059,567 | ||||
3.90%, 01/29/24 (Call 12/29/23)(a) | 4,295 | 4,323,620 | ||||||
4.20%, 10/29/25 (Call 09/29/25)(a) | 20,973 | 20,941,459 | ||||||
4.25%, 04/30/25 (Call 03/31/25)(a) | 7,432 | 7,531,890 | ||||||
Charles Schwab Corp. (The) | ||||||||
2.65%, 01/25/23 (Call 12/25/22)(a) | 5,916 | 5,837,055 | ||||||
3.85%, 05/21/25 (Call 03/21/25)(a) | 18,348 | 18,880,624 | ||||||
CME Group Inc. | ||||||||
3.00%, 09/15/22 | 4,450 | 4,459,400 | ||||||
3.00%, 03/15/25 (Call 12/15/24)(a) | 8,844 | 8,734,825 | ||||||
5.30%, 09/15/43 (Call 03/15/43)(a) | 11,298 | 13,449,389 | ||||||
Discover Financial Services, 4.10%, 02/09/27 (Call 11/09/26)(a) | 18,552 | 17,981,815 | ||||||
GE Capital International Funding Co. Unlimited Co. | ||||||||
3.37%, 11/15/25(a) | 19,093 | 18,374,217 | ||||||
4.42%, 11/15/35 | 133,771 | 120,728,608 | ||||||
Intercontinental Exchange Inc. | ||||||||
3.75%, 12/01/25 (Call 09/01/25) | 16,987 | 17,373,634 | ||||||
3.75%, 09/21/28 (Call 06/21/28) | 2,090 | 2,119,570 | ||||||
4.00%, 10/15/23(a) | 6,497 | 6,724,188 | ||||||
4.25%, 09/21/48 (Call 03/21/48) | 13,244 | 13,413,087 | ||||||
International Lease Finance Corp., 5.88%, 08/15/22(a) | 8,034 | 8,476,804 | ||||||
Jefferies Financial Group Inc., 5.50%, 10/18/23 (Call 01/18/23)(a) | 5,606 | 5,836,210 | ||||||
Jefferies Group LLC/Jefferies Group Capital Finance Inc. | ||||||||
4.15%, 01/23/30 | 5,371 | 4,711,696 | ||||||
4.85%, 01/15/27 | 17,137 | 16,665,340 | ||||||
Mastercard Inc. | ||||||||
2.95%, 11/21/26 (Call 08/21/26)(a) | 13,512 | 13,243,054 | ||||||
3.38%, 04/01/24(a) | 17,914 | 18,291,534 | ||||||
ORIX Corp., 2.90%, 07/18/22(a) | 1,656 | 1,632,362 | ||||||
Synchrony Financial | ||||||||
3.70%, 08/04/26 (Call 05/04/26) | 329 | 299,901 | ||||||
3.75%, 08/15/21 (Call 06/15/21)(a) | 1,610 | 1,613,526 | ||||||
3.95%, 12/01/27 (Call 09/01/27) | 29,312 | 26,844,598 | ||||||
4.25%, 08/15/24 (Call 05/15/24)(a) | 4,696 | 4,593,430 | ||||||
4.50%, 07/23/25 (Call 04/23/25)(a) | 9,541 | 9,340,035 | ||||||
TD Ameritrade Holding Corp. | ||||||||
2.95%, 04/01/22 (Call 02/01/22) | 6,274 | 6,269,787 | ||||||
3.30%, 04/01/27 (Call 01/01/27) | 10,696 | 10,443,355 | ||||||
Visa Inc. | ||||||||
2.15%, 09/15/22 (Call 08/15/22)(a) | 14,676 | 14,362,032 | ||||||
2.75%, 09/15/27 (Call 06/15/27)(a) | 4,153 | 3,998,785 | ||||||
2.80%, 12/14/22 (Call 10/14/22)(a) | 18,535 | 18,508,866 | ||||||
3.15%, 12/14/25 (Call 09/14/25) | 44,221 | 44,315,708 | ||||||
3.65%, 09/15/47 (Call 03/15/47)(a) | 19,145 | 18,160,838 | ||||||
4.15%, 12/14/35 (Call 06/14/35) | 19,650 | 20,542,187 | ||||||
4.30%, 12/14/45 (Call 06/14/45) | 47,670 | 49,959,843 | ||||||
|
| |||||||
992,988,008 | ||||||||
Electric — 1.7% | ||||||||
Berkshire Hathaway Energy Co. | ||||||||
3.80%, 07/15/48 (Call 01/15/48)(a) | 4,028 | 3,673,116 | ||||||
4.45%, 01/15/49 (Call 07/15/48) | 15,764 | 15,854,187 | ||||||
4.50%, 02/01/45 (Call 08/01/44)(a) | 11,965 | 12,205,491 | ||||||
5.15%, 11/15/43 (Call 05/15/43)(a) | 11,671 | 12,842,528 | ||||||
6.13%, 04/01/36(a) | 19,520 | 23,667,908 | ||||||
Commonwealth Edison Co., 4.00%, 03/01/48 (Call 09/01/47) | 1,395 | 1,362,747 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Consolidated Edison Co. of New York Inc. | ||||||||
4.45%, 03/15/44 (Call 09/15/43) | $ | 15,161 | $ | 15,398,987 | ||||
4.63%, 12/01/54 (Call 06/01/54)(a) | 12,210 | 12,223,200 | ||||||
Dominion Energy Inc., 3.90%, 10/01/25 (Call 07/01/25)(a) | 17,739 | 17,845,583 | ||||||
Duke Energy Carolinas LLC | ||||||||
3.88%, 03/15/46 (Call 09/15/45)(a) | 597 | 572,660 | ||||||
5.30%, 02/15/40(a) | 4,091 | 4,730,130 | ||||||
Duke Energy Corp. | ||||||||
1.80%, 09/01/21 (Call 08/01/21)(a) | 3,872 | 3,748,677 | ||||||
2.65%, 09/01/26 (Call 06/01/26)(a) | 17,091 | 15,923,485 | ||||||
3.15%, 08/15/27 (Call 05/15/27)(a) | 3,188 | 3,047,353 | ||||||
3.75%, 04/15/24 (Call 01/15/24)(a) | 10,229 | 10,380,854 | ||||||
3.75%, 09/01/46 (Call 03/01/46)(a) | 30,477 | 27,299,349 | ||||||
Duke Energy Florida LLC, 6.40%, 06/15/38(a) | 7,465 | 9,566,760 | ||||||
Emera U.S. Finance LP | ||||||||
2.70%, 06/15/21 (Call 05/15/21) | 277 | 272,029 | ||||||
3.55%, 06/15/26 (Call 03/15/26)(a) | 13,248 | 12,675,217 | ||||||
4.75%, 06/15/46 (Call 12/15/45)(a) | 5,950 | 5,816,040 | ||||||
Entergy Corp., 2.95%, 09/01/26 (Call 06/01/26)(a) | 12,376 | 11,586,739 | ||||||
Exelon Corp. | ||||||||
3.40%, 04/15/26 (Call 01/15/26)(a) | 4,542 | 4,403,336 | ||||||
3.50%, 06/01/22 (Call 05/01/22) | 4,838 | 4,810,861 | ||||||
3.95%, 06/15/25 (Call 03/15/25)(a) | 15,713 | 15,778,199 | ||||||
4.45%, 04/15/46 (Call 10/15/45)(a) | 12,060 | 11,735,576 | ||||||
Exelon Generation Co. LLC | ||||||||
5.60%, 06/15/42 (Call 12/15/41)(a) | 14,055 | 13,897,349 | ||||||
6.25%, 10/01/39(a) | 15,785 | 16,723,060 | ||||||
FirstEnergy Corp. | ||||||||
Series B, 3.90%, 07/15/27 (Call 04/15/27)(a) | 18,554 | 18,347,240 | ||||||
Series B, 4.25%, 03/15/23 (Call 12/15/22)(a) | 10,984 | 11,228,257 | ||||||
Series C, 4.85%, 07/15/47 (Call 01/15/47)(a) | 6,585 | 6,777,202 | ||||||
Series C, 7.38%, 11/15/31(a) | 22,565 | 29,059,083 | ||||||
Florida Power & Light Co., 3.95%, 03/01/48 (Call 09/01/47) | 1,275 | 1,265,124 | ||||||
Fortis Inc./Canada, 3.06%, 10/04/26 (Call 07/04/26)(a) | 13,446 | 12,533,105 | ||||||
Georgia Power Co., 4.30%, 03/15/42 | 12,737 | 12,013,666 | ||||||
MidAmerican Energy Co., 4.25%, 07/15/49 (Call 01/15/49) | 855 | 875,980 | ||||||
NextEra Energy Capital Holdings Inc., 3.55%, 05/01/27 (Call 02/01/27)(a) | 18,662 | 18,181,638 | ||||||
Sempra Energy | ||||||||
2.90%, 02/01/23 (Call 01/01/23) | 1,385 | 1,340,073 | ||||||
3.25%, 06/15/27 (Call 03/15/27)(a) | 14,173 | 13,203,144 | ||||||
3.40%, 02/01/28 (Call 11/01/27)(a) | 11,040 | 10,389,351 | ||||||
3.80%, 02/01/38 (Call 08/01/37) | 13,739 | 12,095,653 | ||||||
4.00%, 02/01/48 (Call 08/01/47)(a) | 16,364 | 14,379,695 | ||||||
6.00%, 10/15/39 | 4,334 | 4,918,174 | ||||||
Southern California Edison Co. | ||||||||
4.00%, 04/01/47 (Call 10/01/46)(a) | 13,456 | 12,119,025 | ||||||
4.65%, 10/01/43 (Call 04/01/43) | 9,573 | 9,429,405 | ||||||
Series C, 4.13%, 03/01/48 (Call 09/01/47) | 10,635 | 9,794,819 | ||||||
Southern Co. (The) | ||||||||
2.95%, 07/01/23 (Call 05/01/23)(a) | 15,608 | 15,318,094 | ||||||
3.25%, 07/01/26 (Call 04/01/26) | 26,892 | 25,609,122 | ||||||
4.40%, 07/01/46 (Call 01/01/46) | 18,212 | 17,425,710 | ||||||
Virginia Electric & Power Co. | ||||||||
Series A, 3.15%, 01/15/26 (Call 10/15/25) | 9,755 | 9,571,107 | ||||||
Series A, 3.50%, 03/15/27 (Call 12/15/26)(a) | 8,749 | 8,681,425 | ||||||
|
| |||||||
562,597,513 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electronics — 0.1% | ||||||||
Fortive Corp., 3.15%, 06/15/26 (Call 03/15/26) | $ | 15,992 | $ | 15,213,620 | ||||
Honeywell International Inc. | ||||||||
1.85%, 11/01/21 (Call 10/01/21)(a) | 6,594 | 6,447,613 | ||||||
2.50%, 11/01/26 (Call 08/01/26)(a) | 16,304 | 15,570,439 | ||||||
|
| |||||||
37,231,672 | ||||||||
Environmental Control — 0.1% | ||||||||
Republic Services Inc. | ||||||||
3.55%, 06/01/22 (Call 03/01/22)(a) | 10,933 | 11,086,172 | ||||||
3.95%, 05/15/28 (Call 02/15/28)(a) | 11,234 | 11,494,020 | ||||||
Waste Management Inc. | ||||||||
3.15%, 11/15/27 (Call 08/15/27)(a) | 17,291 | 16,751,677 | ||||||
4.10%, 03/01/45 (Call 09/01/44)(a) | 4,962 | 4,829,225 | ||||||
|
| |||||||
44,161,094 | ||||||||
Food — 1.8% | ||||||||
Campbell Soup Co. | ||||||||
3.65%, 03/15/23 (Call 02/15/23)(a) | 11,886 | 11,795,921 | ||||||
3.95%, 03/15/25 (Call 01/15/25)(a) | 3,971 | 3,886,611 | ||||||
4.15%, 03/15/28 (Call 12/15/27)(a) | 14,512 | 13,881,471 | ||||||
4.80%, 03/15/48 (Call 09/15/47) | 3,003 | 2,624,186 | ||||||
Conagra Brands Inc. | ||||||||
3.20%, 01/25/23 (Call 10/25/22)(a) | 10,578 | 10,374,586 | ||||||
4.30%, 05/01/24 (Call 04/01/24)(a) | 11,695 | 11,856,956 | ||||||
4.60%, 11/01/25 (Call 09/01/25) | 13,069 | 13,268,629 | ||||||
4.85%, 11/01/28 (Call 08/01/28)(a) | 12,814 | 12,827,465 | ||||||
5.30%, 11/01/38 (Call 05/01/38)(a) | 16,312 | 15,496,085 | ||||||
5.40%, 11/01/48 (Call 05/01/48)(a) | 13,777 | 12,919,748 | ||||||
General Mills Inc. | ||||||||
3.15%, 12/15/21 (Call 09/15/21)(a) | 4,736 | 4,750,057 | ||||||
3.20%, 02/10/27 (Call 11/10/26)(a) | 9,917 | 9,291,734 | ||||||
3.70%, 10/17/23 (Call 09/17/23)(a) | 9,024 | 9,110,924 | ||||||
4.00%, 04/17/25 (Call 02/17/25)(a) | 5,713 | 5,770,313 | ||||||
4.20%, 04/17/28 (Call 01/17/28)(a) | 20,519 | 20,697,938 | ||||||
JM Smucker Co. (The) | ||||||||
3.50%, 10/15/21(a) | 3,371 | 3,395,150 | ||||||
3.50%, 03/15/25 | 14,195 | 13,930,380 | ||||||
Kellogg Co. | ||||||||
3.25%, 04/01/26(a) | 10,782 | 10,184,857 | ||||||
Series B, 7.45%, 04/01/31(a) | 1,687 | 2,121,929 | ||||||
Kraft Heinz Foods Co. | ||||||||
3.00%, 06/01/26 (Call 03/01/26)(a) | 23,937 | 22,096,898 | ||||||
3.50%, 06/06/22 | 23,047 | 22,980,491 | ||||||
3.50%, 07/15/22 (Call 05/15/22)(a) | 15,564 | 15,510,398 | ||||||
3.95%, 07/15/25 (Call 04/15/25)(a) | 29,244 | 28,906,741 | ||||||
4.00%, 06/15/23 (Call 05/15/23)(a) | 20,843 | 21,081,729 | ||||||
4.38%, 06/01/46 (Call 12/01/45)(a) | 33,593 | 27,848,913 | ||||||
4.63%, 01/30/29 (Call 10/30/28)(a) | 13,961 | 13,995,344 | ||||||
5.00%, 07/15/35 (Call 01/15/35)(a) | 17,337 | 16,494,970 | ||||||
5.00%, 06/04/42(a) | 22,990 | 20,846,895 | ||||||
5.20%, 07/15/45 (Call 01/15/45) | 16,210 | 15,201,318 | ||||||
6.50%, 02/09/40(a) | 4,179 | 4,429,955 | ||||||
6.88%, 01/26/39(a) | 11,765 | 12,940,785 | ||||||
Kroger Co. (The) | ||||||||
2.65%, 10/15/26 (Call 07/15/26)(a) | 13,999 | 12,587,638 | ||||||
4.45%, 02/01/47 (Call 08/01/46)(a) | 12,416 | 10,932,603 | ||||||
McCormick & Co. Inc./MD | ||||||||
2.70%, 08/15/22 (Call 07/15/22)(a) | 4,707 | 4,600,252 | ||||||
3.40%, 08/15/27 (Call 05/15/27) | 6,386 | 6,078,847 | ||||||
Mondelez International Inc., 3.63%, 05/07/23 (Call 04/07/23) | 3,818 | 3,857,131 |
Security | Par (000) | Value | ||||||
Food (continued) | ||||||||
Sysco Corp. | ||||||||
3.25%, 07/15/27 (Call 04/15/27)(a) | $ | 10,234 | $ | 9,803,071 | ||||
3.30%, 07/15/26 (Call 04/15/26) | 14,761 | 14,250,483 | ||||||
3.75%, 10/01/25 (Call 07/01/25) | 10,199 | 10,247,400 | ||||||
Tyson Foods Inc. | ||||||||
3.55%, 06/02/27 (Call 03/02/27)(a) | 10,993 | 10,560,816 | ||||||
3.95%, 08/15/24 (Call 05/15/24)(a) | 17,264 | 17,388,833 | ||||||
4.00%, 03/01/26 (Call 01/01/26)(a) | 10,925 | 10,948,215 | ||||||
4.35%, 03/01/29 (Call 12/01/28)(a) | 15,510 | 15,609,673 | ||||||
4.50%, 06/15/22 (Call 03/15/22)(a) | 12,452 | 12,847,026 | ||||||
4.55%, 06/02/47 (Call 12/02/46)(a) | 8,933 | 7,972,978 | ||||||
5.10%, 09/28/48 (Call 03/28/48) | 15,760 | 15,269,546 | ||||||
|
| |||||||
573,473,889 | ||||||||
Forest Products & Paper — 0.2% | ||||||||
International Paper Co. | ||||||||
3.00%, 02/15/27 (Call 11/15/26)(a) | 14,176 | 13,277,310 | ||||||
3.65%, 06/15/24 (Call 03/15/24)(a) | 11,550 | 11,686,873 | ||||||
4.35%, 08/15/48 (Call 02/15/48)(a) | 16,102 | 14,246,389 | ||||||
4.40%, 08/15/47 (Call 02/15/47) | 15,047 | 13,445,802 | ||||||
4.75%, 02/15/22 (Call 11/15/21) | 4,057 | 4,221,148 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 9,260 | 8,826,006 | ||||||
7.30%, 11/15/39(a) | 1,042 | 1,261,916 | ||||||
|
| |||||||
66,965,444 | ||||||||
Gas — 0.1% | ||||||||
Atmos Energy Corp., 4.13%, 10/15/44 (Call 04/15/44)(a) | 3,821 | 3,780,486 | ||||||
NiSource Inc. | ||||||||
3.49%, 05/15/27 (Call 02/15/27)(a) | 15,926 | 15,431,606 | ||||||
3.95%, 03/30/48 (Call 09/30/47)(a) | 5,821 | 5,260,485 | ||||||
4.38%, 05/15/47 (Call 11/15/46) | 12,668 | 12,230,574 | ||||||
4.80%, 02/15/44 (Call 08/15/43)(a) | 12,672 | 12,744,106 | ||||||
|
| |||||||
49,447,257 | ||||||||
Health Care – Products — 1.8% | ||||||||
Abbott Laboratories | ||||||||
2.55%, 03/15/22(a) | 4,880 | 4,818,655 | ||||||
2.90%, 11/30/21 (Call 10/30/21)(a) | 13,660 | 13,645,384 | ||||||
2.95%, 03/15/25 (Call 12/15/24)(a) | 13,633 | 13,388,559 | ||||||
3.40%, 11/30/23 (Call 09/30/23) | 9,549 | 9,642,168 | ||||||
3.75%, 11/30/26 (Call 08/30/26) | 7,975 | 8,086,111 | ||||||
4.75%, 11/30/36 (Call 05/30/36)(a) | 33,335 | 35,728,400 | ||||||
4.90%, 11/30/46 (Call 05/30/46)(a) | 34,677 | 37,855,896 | ||||||
Becton Dickinson and Co. | ||||||||
2.89%, 06/06/22 (Call 05/06/22) | 24,759 | 24,493,470 | ||||||
3.13%, 11/08/21(a) | 5,083 | 5,055,003 | ||||||
3.36%, 06/06/24 (Call 04/06/24) | 25,094 | 24,709,670 | ||||||
3.70%, 06/06/27 (Call 03/06/27) | 32,440 | 31,540,202 | ||||||
3.73%, 12/15/24 (Call 09/15/24)(a) | 14,812 | 14,825,310 | ||||||
4.67%, 06/06/47 (Call 12/06/46)(a) | 10,580 | 10,490,787 | ||||||
4.69%, 12/15/44 (Call 06/15/44) | 6,006 | 5,867,102 | ||||||
Boston Scientific Corp. | ||||||||
3.45%, 03/01/24 (Call 02/01/24) | 5,000 | 5,012,282 | ||||||
3.75%, 03/01/26 (Call 01/01/26) | 10,000 | 10,014,199 | ||||||
3.85%, 05/15/25(a) | 15,075 | 15,270,948 | ||||||
4.00%, 03/01/28 (Call 12/01/27)(a) | 13,454 | 13,480,638 | ||||||
4.00%, 03/01/29 (Call 12/01/28) | 8,250 | 8,225,655 | ||||||
4.55%, 03/01/39 (Call 09/01/38) | 10,200 | 10,194,351 | ||||||
4.70%, 03/01/49 (Call 09/01/48) | 10,465 | 10,429,024 | ||||||
Medtronic Global Holdings SCA, 3.35%, 04/01/27 (Call 01/01/27) | 16,164 | 16,111,462 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Products (continued) | ||||||||
Medtronic Inc. | ||||||||
3.15%, 03/15/22 | $ | 15,408 | $ | 15,508,805 | ||||
3.50%, 03/15/25 | 46,543 | 47,231,534 | ||||||
3.63%, 03/15/24 (Call 12/15/23)(a) | 3,917 | 4,015,155 | ||||||
4.38%, 03/15/35(a) | 20,557 | 21,656,339 | ||||||
4.63%, 03/15/45 | 50,595 | 55,390,698 | ||||||
Stryker Corp. | ||||||||
3.38%, 11/01/25 (Call 08/01/25) | 3,122 | 3,102,202 | ||||||
3.50%, 03/15/26 (Call 12/15/25) | 10,312 | 10,248,970 | ||||||
4.63%, 03/15/46 (Call 09/15/45) | 10,061 | 10,277,808 | ||||||
Thermo Fisher Scientific Inc. | ||||||||
2.95%, 09/19/26 (Call 06/19/26) | 21,792 | 20,564,267 | ||||||
3.00%, 04/15/23 (Call 02/15/23)(a) | 9,875 | 9,727,753 | ||||||
3.15%, 01/15/23 (Call 10/15/22)(a) | 5,713 | 5,688,022 | ||||||
3.20%, 08/15/27 (Call 05/15/27) | 12,379 | 11,746,865 | ||||||
3.30%, 02/15/22(a) | 4,255 | 4,270,406 | ||||||
4.10%, 08/15/47 (Call 02/15/47)(a) | 6,003 | 5,631,399 | ||||||
4.15%, 02/01/24 (Call 11/01/23)(a) | 13,642 | 14,089,867 | ||||||
Zimmer Biomet Holdings Inc. | ||||||||
3.15%, 04/01/22 (Call 02/01/22)(a) | 2,898 | 2,869,154 | ||||||
3.55%, 04/01/25 (Call 01/01/25)(a) | 21,768 | 21,127,207 | ||||||
|
| |||||||
592,031,727 | ||||||||
Health Care – Services — 2.1% | ||||||||
Aetna Inc. | ||||||||
2.75%, 11/15/22 (Call 08/15/22) | 10,552 | 10,313,329 | ||||||
2.80%, 06/15/23 (Call 04/15/23) | 21,194 | 20,637,874 | ||||||
3.50%, 11/15/24 (Call 08/15/24) | 16,055 | 15,854,404 | ||||||
3.88%, 08/15/47 (Call 02/15/47)(a) | 7,065 | 5,865,155 | ||||||
6.63%, 06/15/36 | 10,318 | 12,030,533 | ||||||
Anthem Inc. | ||||||||
2.95%, 12/01/22 (Call 11/01/22) | 11,073 | 10,978,803 | ||||||
3.13%, 05/15/22(a) | 8,481 | 8,457,529 | ||||||
3.30%, 01/15/23(a) | 17,565 | 17,589,089 | ||||||
3.35%, 12/01/24 (Call 10/01/24)(a) | 12,435 | 12,322,432 | ||||||
3.50%, 08/15/24 (Call 05/15/24) | 14,463 | 14,428,604 | ||||||
3.65%, 12/01/27 (Call 09/01/27)(a) | 19,404 | 19,061,069 | ||||||
4.10%, 03/01/28 (Call 12/01/27)(a) | 13,173 | 13,295,347 | ||||||
4.38%, 12/01/47 (Call 06/01/47) | 17,969 | 17,221,459 | ||||||
4.55%, 03/01/48 (Call 09/01/47)(a) | 9,002 | 8,851,548 | ||||||
4.63%, 05/15/42(a) | 10,882 | 10,764,593 | ||||||
4.65%, 01/15/43 | 10,666 | 10,622,342 | ||||||
4.65%, 08/15/44 (Call 02/15/44) | 10,138 | 10,075,490 | ||||||
5.85%, 01/15/36(a) | 553 | 623,375 | ||||||
Cigna Holding Co. | ||||||||
3.05%, 10/15/27 (Call 07/15/27) | 1,407 | 1,297,223 | ||||||
3.25%, 04/15/25 (Call 01/15/25)(a) | 14,920 | 14,515,004 | ||||||
3.88%, 10/15/47 (Call 04/15/47) | 5,111 | 4,317,377 | ||||||
4.00%, 02/15/22 (Call 11/15/21)(a) | 3,945 | 4,015,843 | ||||||
HCA Inc. | ||||||||
4.50%, 02/15/27 (Call 08/15/26)(a) | 14,000 | 14,109,480 | ||||||
4.75%, 05/01/23(a) | 15,111 | 15,645,778 | ||||||
5.00%, 03/15/24 | 20,915 | 21,866,005 | ||||||
5.25%, 04/15/25 | 17,545 | 18,594,366 | ||||||
5.25%, 06/15/26 (Call 12/15/25)(a) | 17,855 | 18,855,416 | ||||||
5.50%, 06/15/47 (Call 12/15/46) | 19,384 | 20,143,853 | ||||||
Humana Inc., 4.95%, 10/01/44 (Call 04/01/44)(a) | 9,418 | 9,668,795 | ||||||
Kaiser Foundation Hospitals, 4.15%, 05/01/47 (Call 11/01/46) | 12,094 | 12,204,300 |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
Laboratory Corp. of America Holdings | ||||||||
3.60%, 02/01/25 (Call 11/01/24)(a) | $ | 19,695 | $ | 19,238,864 | ||||
4.70%, 02/01/45 (Call 08/01/44)(a) | 7,476 | 6,991,898 | ||||||
UnitedHealth Group Inc. | ||||||||
2.38%, 10/15/22 | 15,743 | 15,462,661 | ||||||
2.88%, 12/15/21(a) | 5,772 | 5,768,523 | ||||||
2.88%, 03/15/22 (Call 12/15/21)(a) | 12,037 | 12,041,585 | ||||||
2.88%, 03/15/23 | 5,009 | 4,984,415 | ||||||
2.95%, 10/15/27 | 13,811 | 13,244,662 | ||||||
3.10%, 03/15/26(a) | 13,498 | 13,233,038 | ||||||
3.35%, 07/15/22(a) | 9,654 | 9,778,047 | ||||||
3.38%, 04/15/27(a) | 1,619 | 1,605,832 | ||||||
3.45%, 01/15/27(a) | 8,133 | 8,138,617 | ||||||
3.50%, 06/15/23(a) | 6,082 | 6,185,460 | ||||||
3.50%, 02/15/24 | 14,948 | 15,186,868 | ||||||
3.75%, 07/15/25 | 30,478 | 31,292,360 | ||||||
3.75%, 10/15/47 (Call 04/15/47)(a) | 15,610 | 14,617,569 | ||||||
3.85%, 06/15/28(a) | 14,077 | 14,427,323 | ||||||
4.20%, 01/15/47 (Call 07/15/46) | 13,428 | 13,469,204 | ||||||
4.25%, 03/15/43 (Call 09/15/42)(a) | 16,203 | 16,457,510 | ||||||
4.25%, 04/15/47 (Call 10/15/46) | 1,509 | 1,528,594 | ||||||
4.25%, 06/15/48 (Call 12/15/47)(a) | 18,690 | 18,918,573 | ||||||
4.45%, 12/15/48 (Call 06/15/48)(a) | 2,012 | 2,098,469 | ||||||
4.63%, 07/15/35(a) | 10,848 | 11,779,121 | ||||||
4.75%, 07/15/45(a) | 24,042 | 26,117,411 | ||||||
5.80%, 03/15/36(a) | 10,836 | 13,032,558 | ||||||
6.88%, 02/15/38(a) | 14,085 | 18,695,636 | ||||||
|
| |||||||
688,521,213 | ||||||||
Housewares — 0.2% | ||||||||
Newell Brands Inc. | ||||||||
3.85%, 04/01/23 (Call 02/01/23) | 23,493 | 22,916,747 | ||||||
4.20%, 04/01/26 (Call 01/01/26) | 31,486 | 29,517,416 | ||||||
5.50%, 04/01/46 (Call 10/01/45) | 1,000 | 868,529 | ||||||
|
| |||||||
53,302,692 | ||||||||
Insurance — 2.1% | ||||||||
Aflac Inc., 3.63%, 11/15/24(a) | 8,465 | 8,631,688 | ||||||
American International Group Inc. | ||||||||
3.75%, 07/10/25 (Call 04/10/25) | 16,812 | 16,557,451 | ||||||
3.88%, 01/15/35 (Call 07/15/34) | 11,837 | 10,480,202 | ||||||
3.90%, 04/01/26 (Call 01/01/26)(a) | 16,670 | 16,345,555 | ||||||
4.13%, 02/15/24 | 17,682 | 18,021,003 | ||||||
4.20%, 04/01/28 (Call 01/01/28)(a) | 11,906 | 11,759,868 | ||||||
4.38%, 01/15/55 (Call 07/15/54) | 7,723 | 6,545,870 | ||||||
4.50%, 07/16/44 (Call 01/16/44)(a) | 24,656 | 22,640,288 | ||||||
4.75%, 04/01/48 (Call 10/01/47)(a) | 12,875 | 12,304,330 | ||||||
4.80%, 07/10/45 (Call 01/10/45)(a) | 16,664 | 15,964,769 | ||||||
4.88%, 06/01/22(a) | 2,461 | 2,580,534 | ||||||
6.25%, 05/01/36(a) | 9,437 | 10,538,103 | ||||||
Aon PLC, 3.88%, 12/15/25 (Call 09/15/25)(a) | 15,430 | 15,691,579 | ||||||
Athene Holding Ltd., 4.13%, 01/12/28 (Call 10/12/27) | 13,213 | 12,339,346 | ||||||
AXA Equitable Holdings Inc. | ||||||||
3.90%, 04/20/23 (Call 03/20/23) | 12,607 | 12,725,159 | ||||||
4.35%, 04/20/28 (Call 01/20/28)(a) | 16,983 | 16,776,268 | ||||||
5.00%, 04/20/48 (Call 10/20/47) | 11,548 | 10,792,493 | ||||||
Berkshire Hathaway Finance Corp. | ||||||||
3.00%, 05/15/22(a) | 4,985 | 5,021,109 | ||||||
4.20%, 08/15/48 (Call 02/15/48)(a) | 35,235 | 35,391,465 | ||||||
4.25%, 01/15/49 (Call 07/15/48) | 7,905 | 8,011,631 | ||||||
5.75%, 01/15/40(a) | 2,658 | 3,212,677 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
Berkshire Hathaway Inc. | ||||||||
2.75%, 03/15/23 (Call 01/15/23)(a) | $ | 23,256 | $ | 23,201,972 | ||||
3.13%, 03/15/26 (Call 12/15/25)(a) | 31,880 | 31,501,734 | ||||||
4.50%, 02/11/43(a) | 12,846 | 13,579,313 | ||||||
Brighthouse Financial Inc. | ||||||||
3.70%, 06/22/27 (Call 03/22/27)(a) | 18,233 | 16,369,899 | ||||||
4.70%, 06/22/47 (Call 12/22/46) | 17,095 | 13,526,253 | ||||||
Chubb Corp. (The), 6.00%, 05/11/37(a) | 12,079 | 14,893,094 | ||||||
Chubb INA Holdings Inc. | ||||||||
2.88%, 11/03/22 (Call 09/03/22)(a) | 8,741 | 8,735,213 | ||||||
3.15%, 03/15/25(a) | 11,585 | 11,482,353 | ||||||
3.35%, 05/03/26 (Call 02/03/26) | 10,409 | 10,364,426 | ||||||
4.35%, 11/03/45 (Call 05/03/45)(a) | 13,643 | 14,263,080 | ||||||
Manulife Financial Corp. | ||||||||
4.15%, 03/04/26(a) | 12,429 | 12,833,501 | ||||||
5.38%, 03/04/46(a) | 12,134 | 13,509,086 | ||||||
Marsh & McLennan Companies Inc. | ||||||||
3.88%, 03/15/24 (Call 02/15/24)(a) | 10,200 | 10,430,123 | ||||||
4.38%, 03/15/29 (Call 12/15/28)(a) | 10,000 | 10,313,781 | ||||||
4.90%, 03/15/49 (Call 09/15/48) | 10,415 | 10,967,702 | ||||||
MetLife Inc. | ||||||||
3.60%, 04/10/24(a) | 12,049 | 12,317,532 | ||||||
4.05%, 03/01/45(a) | 7,469 | 7,079,196 | ||||||
4.13%, 08/13/42(a) | 8,579 | 8,254,951 | ||||||
4.60%, 05/13/46 (Call 11/13/45)(a) | 5,599 | 5,764,439 | ||||||
4.88%, 11/13/43 | 14,405 | 15,408,098 | ||||||
5.70%, 06/15/35(a) | 11,550 | 13,438,338 | ||||||
5.88%, 02/06/41(a) | 7,977 | 9,591,575 | ||||||
6.38%, 06/15/34(a) | 9,028 | 11,177,440 | ||||||
Series D, 4.37%, 09/15/23 | 15,127 | 15,914,549 | ||||||
Progressive Corp. (The), 4.13%, 04/15/47 (Call 10/15/46) | 11,889 | 11,845,989 | ||||||
Prudential Financial Inc. | ||||||||
3.91%, 12/07/47 (Call 06/07/47)(a) | 9,507 | 8,770,597 | ||||||
3.94%, 12/07/49 (Call 06/07/49) | 11,758 | 10,942,772 | ||||||
4.35%, 02/25/50 (Call 08/25/49)(a) | 5,525 | 5,462,262 | ||||||
4.60%, 05/15/44(a) | 17,192 | 17,591,346 | ||||||
5.70%, 12/14/36(a) | 7,704 | 8,871,225 | ||||||
Travelers Companies Inc. (The) | ||||||||
5.35%, 11/01/40 | 9,331 | 10,877,106 | ||||||
6.25%, 06/15/37(a) | 11,340 | 14,253,984 | ||||||
|
| |||||||
675,864,317 | ||||||||
Internet — 1.2% | ||||||||
Alphabet Inc. | ||||||||
2.00%, 08/15/26 (Call 05/15/26) | 23,080 | 21,375,895 | ||||||
3.38%, 02/25/24(a) | 17,147 | 17,591,063 | ||||||
Amazon.com Inc. | ||||||||
2.40%, 02/22/23 (Call 01/22/23)(a) | 17,626 | 17,311,057 | ||||||
2.50%, 11/29/22 (Call 08/29/22)(a) | 19,259 | 19,075,371 | ||||||
2.80%, 08/22/24 (Call 06/22/24) | 23,957 | 23,691,583 | ||||||
3.15%, 08/22/27 (Call 05/22/27)(a) | 45,513 | 44,878,835 | ||||||
3.30%, 12/05/21 (Call 10/05/21) | 2,973 | 3,015,424 | ||||||
3.80%, 12/05/24 (Call 09/05/24)(a) | 9,400 | 9,798,126 | ||||||
3.88%, 08/22/37 (Call 02/22/37)(a) | 33,168 | 33,025,978 | ||||||
4.05%, 08/22/47 (Call 02/22/47)(a) | 43,953 | 44,081,154 | ||||||
4.25%, 08/22/57 (Call 02/22/57)(a) | 13,290 | 13,442,158 | ||||||
4.80%, 12/05/34 (Call 06/05/34)(a) | 28,374 | 31,639,907 | ||||||
4.95%, 12/05/44 (Call 06/05/44)(a) | 14,858 | 16,867,473 | ||||||
5.20%, 12/03/25 (Call 09/03/25) | 7,140 | 8,018,259 |
Security | Par (000) | Value | ||||||
Internet (continued) | ||||||||
Booking Holdings Inc., 3.60%, 06/01/26 (Call 03/01/26)(a) | $ | 16,131 | $ | 15,812,950 | ||||
eBay Inc. | ||||||||
2.60%, 07/15/22 (Call 04/15/22)(a) | 11,971 | 11,715,047 | ||||||
2.75%, 01/30/23 (Call 12/30/22)(a) | 12,319 | 11,991,336 | ||||||
3.45%, 08/01/24 (Call 05/01/24)(a) | 6,879 | 6,817,283 | ||||||
3.60%, 06/05/27 (Call 03/05/27)(a) | 12,917 | 12,309,813 | ||||||
3.80%, 03/09/22 (Call 02/09/22) | 10,520 | 10,667,301 | ||||||
4.00%, 07/15/42 (Call 01/15/42)(a) | 5,948 | 4,761,666 | ||||||
Expedia Group Inc. | ||||||||
3.80%, 02/15/28 (Call 11/15/27) | 10,505 | 9,933,003 | ||||||
5.00%, 02/15/26 (Call 11/15/25) | 7,312 | 7,576,823 | ||||||
|
| |||||||
395,397,505 | ||||||||
Machinery — 0.4% | ||||||||
ABB Finance USA Inc. | ||||||||
2.88%, 05/08/22(a) | 17,412 | 17,294,755 | ||||||
3.80%, 04/03/28 (Call 01/03/28) | 3,740 | 3,812,093 | ||||||
4.38%, 05/08/42(a) | 5,570 | 5,777,778 | ||||||
Caterpillar Financial Services Corp., 1.70%, 08/09/21(a) | 496 | 482,097 | ||||||
Caterpillar Inc. | ||||||||
3.40%, 05/15/24 (Call 02/15/24) | 7,789 | 7,934,287 | ||||||
3.80%, 08/15/42(a) | 18,790 | 18,039,708 | ||||||
5.20%, 05/27/41(a) | 9,329 | 10,548,185 | ||||||
Deere & Co. | ||||||||
2.60%, 06/08/22 (Call 03/08/22)(a) | 7,484 | 7,432,241 | ||||||
3.90%, 06/09/42 (Call 12/09/41)(a) | 12,589 | 12,612,174 | ||||||
John Deere Capital Corp., 2.80%, 03/06/23(a) | 23,232 | 23,046,260 | ||||||
Roper Technologies Inc., 4.20%, 09/15/28 (Call 06/15/28) | 75 | 75,426 | ||||||
Wabtec Corp. | ||||||||
4.15%, 03/15/24 (Call 02/15/24)(a) | 13,389 | 13,339,263 | ||||||
4.70%, 09/15/28 (Call 06/15/28)(a) | 22,466 | 22,196,408 | ||||||
|
| |||||||
142,590,675 | ||||||||
Manufacturing — 0.9% | ||||||||
3M Co. | ||||||||
2.88%, 10/15/27 (Call 07/15/27)(a) | 5,625 | 5,434,756 | ||||||
3.63%, 09/14/28 (Call 06/14/28)(a) | 7,000 | 7,153,137 | ||||||
4.00%, 09/14/48 (Call 03/14/48)(a) | 13,205 | 13,264,671 | ||||||
5.70%, 03/15/37(a) | 1,410 | 1,708,312 | ||||||
Eaton Corp. | ||||||||
2.75%, 11/02/22 | 17,679 | 17,455,658 | ||||||
4.15%, 11/02/42(a) | 4,372 | 4,197,511 | ||||||
General Electric Co. | ||||||||
2.70%, 10/09/22 | 33,998 | 32,904,529 | ||||||
3.10%, 01/09/23 | 7,465 | 7,303,074 | ||||||
3.15%, 09/07/22(a) | 12,204 | 12,022,523 | ||||||
3.38%, 03/11/24(a) | 6,351 | 6,224,160 | ||||||
3.45%, 05/15/24 (Call 02/13/24) | 1,322 | 1,297,693 | ||||||
4.13%, 10/09/42 | 24,442 | 20,649,547 | ||||||
4.50%, 03/11/44 | 25,831 | 23,012,794 | ||||||
4.65%, 10/17/21 | 7,973 | 8,178,997 | ||||||
5.88%, 01/14/38 | 36,161 | 37,895,220 | ||||||
6.15%, 08/07/37 | 11,813 | 12,667,200 | ||||||
6.88%, 01/10/39(a) | 21,571 | 24,956,763 | ||||||
Series A, 6.75%, 03/15/32 | 35,437 | 40,593,147 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Manufacturing (continued) | ||||||||
Illinois Tool Works Inc. | ||||||||
2.65%, 11/15/26 (Call 08/15/26)(a) | $ | 3,206 | $ | 3,064,174 | ||||
3.90%, 09/01/42 (Call 03/01/42)(a) | 16,315 | 16,276,071 | ||||||
|
| |||||||
296,259,937 | ||||||||
Media — 5.1% | ||||||||
21st Century Fox America Inc. | ||||||||
3.00%, 09/15/22(a) | 15,401 | 15,424,426 | ||||||
6.15%, 03/01/37 | 18,278 | 22,780,736 | ||||||
6.15%, 02/15/41(a) | 15,518 | 19,623,725 | ||||||
6.20%, 12/15/34 | 7,579 | 9,373,033 | ||||||
6.40%, 12/15/35 | 12,584 | 15,931,993 | ||||||
6.65%, 11/15/37(a) | 13,308 | 17,506,642 | ||||||
CBS Corp. | ||||||||
3.50%, 01/15/25 (Call 10/15/24) | 195 | 190,327 | ||||||
4.00%, 01/15/26 (Call 10/15/25) | 17,974 | 17,812,448 | ||||||
7.88%, 07/30/30(a) | 5,645 | 7,243,764 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | ||||||||
3.75%, 02/15/28 (Call 11/15/27)(a) | 15,610 | 14,611,684 | ||||||
4.20%, 03/15/28 (Call 12/15/27) | 18,775 | 18,175,997 | ||||||
4.46%, 07/23/22 (Call 05/23/22) | 29,500 | 30,246,925 | ||||||
4.50%, 02/01/24 (Call 01/01/24)(a) | 10,516 | 10,770,690 | ||||||
4.91%, 07/23/25 (Call 04/23/25)(a) | 51,516 | 53,343,989 | ||||||
5.05%, 03/30/29 (Call 12/30/28)(a) | 16,390 | 16,754,871 | ||||||
5.38%, 04/01/38 (Call 10/01/37) | 6,913 | 6,700,564 | ||||||
5.38%, 05/01/47 (Call 11/01/46)(a) | 33,280 | 31,560,206 | ||||||
5.75%, 04/01/48 (Call 10/01/47)(a) | 21,319 | 21,274,976 | ||||||
6.38%, 10/23/35 (Call 04/23/35)(a) | 22,042 | 23,567,172 | ||||||
6.48%, 10/23/45 (Call 04/23/45)(a) | 46,746 | 50,216,643 | ||||||
Comcast Cable Communications Holdings Inc., 9.46%, 11/15/22 | 12,758 | 15,530,427 | ||||||
Comcast Corp. | ||||||||
2.35%, 01/15/27 (Call 10/15/26) | 15,287 | 14,000,477 | ||||||
2.75%, 03/01/23 (Call 02/01/23) | 11,267 | 11,076,505 | ||||||
2.85%, 01/15/23(a) | 7,613 | 7,543,576 | ||||||
3.00%, 02/01/24 (Call 01/01/24)(a) | 19,231 | 19,045,021 | ||||||
3.13%, 07/15/22(a) | 10,442 | 10,486,293 | ||||||
3.15%, 03/01/26 (Call 12/01/25)(a) | 19,127 | 18,767,036 | ||||||
3.15%, 02/15/28 (Call 11/15/27) | 7,182 | 6,913,266 | ||||||
3.20%, 07/15/36 (Call 01/15/36)(a) | 18,501 | 16,185,359 | ||||||
3.30%, 02/01/27 (Call 11/01/26) | 9,043 | 8,840,585 | ||||||
3.38%, 02/15/25 (Call 11/15/24) | 13,182 | 13,180,434 | ||||||
3.38%, 08/15/25 (Call 05/15/25) | 17,506 | 17,449,911 | ||||||
3.40%, 07/15/46 (Call 01/15/46)(a) | 25,074 | 21,312,727 | ||||||
3.55%, 05/01/28 (Call 02/01/28)(a) | 10,851 | 10,744,874 | ||||||
3.60%, 03/01/24(a) | 15,471 | 15,731,821 | ||||||
3.70%, 04/15/24 (Call 03/15/24) | 36,824 | 37,615,701 | ||||||
3.90%, 03/01/38 (Call 09/01/37) | 9,513 | 9,000,981 | ||||||
3.95%, 10/15/25 (Call 08/15/25) | 34,772 | 35,785,225 | ||||||
3.97%, 11/01/47 (Call 05/01/47)(a) | 13,894 | 12,853,078 | ||||||
4.00%, 08/15/47 (Call 02/15/47)(a) | 8,640 | 8,047,154 | ||||||
4.00%, 03/01/48 (Call 09/01/47)(a) | 16,720 | 15,597,545 | ||||||
4.00%, 11/01/49 (Call 05/01/49)(a) | 19,298 | 17,941,650 | ||||||
4.05%, 11/01/52 (Call 05/01/52) | 9,174 | 8,481,204 | ||||||
4.15%, 10/15/28 (Call 07/15/28) | 49,285 | 50,853,071 | ||||||
4.20%, 08/15/34 (Call 02/15/34) | 14,214 | 14,248,168 | ||||||
4.25%, 10/15/30 (Call 07/15/30) | 21,986 | 22,779,248 | ||||||
4.25%, 01/15/33(a) | 21,286 | 21,758,181 | ||||||
4.40%, 08/15/35 (Call 02/15/35) | 12,443 | 12,553,358 | ||||||
4.60%, 10/15/38 (Call 04/15/38) | 35,973 | 37,119,254 |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
4.60%, 08/15/45 (Call 02/15/45) | $ | 18,501 | $ | 18,886,933 | ||||
4.65%, 07/15/42(a) | 13,310 | 13,659,840 | ||||||
4.70%, 10/15/48 (Call 04/15/48)(a) | 54,335 | 56,532,568 | ||||||
4.75%, 03/01/44 | 17,386 | 18,089,005 | ||||||
4.95%, 10/15/58 (Call 04/15/58) | 35,129 | 37,095,044 | ||||||
5.65%, 06/15/35 | 4,766 | 5,417,572 | ||||||
6.40%, 05/15/38(a) | 3,411 | 4,171,174 | ||||||
6.45%, 03/15/37(a) | 5,405 | 6,643,581 | ||||||
6.50%, 11/15/35 | 11,243 | 13,716,075 | ||||||
6.95%, 08/15/37 | 13,197 | 16,955,024 | ||||||
7.05%, 03/15/33(a) | 9,239 | 11,969,635 | ||||||
Discovery Communications LLC | ||||||||
2.95%, 03/20/23 (Call 02/20/23) | 11,840 | 11,462,176 | ||||||
3.95%, 03/20/28 (Call 12/20/27)(a) | 26,788 | 25,498,032 | ||||||
4.88%, 04/01/43(a) | 14,172 | 12,754,963 | ||||||
5.00%, 09/20/37 (Call 03/20/37)(a) | 17,026 | 16,081,886 | ||||||
5.20%, 09/20/47 (Call 03/20/47)(a) | 21,220 | 19,955,226 | ||||||
6.35%, 06/01/40(a) | 2,946 | 3,149,580 | ||||||
Fox Corp. | ||||||||
4.03%, 01/25/24 (Call 12/25/23)(a)(b) | 14,581 | 14,880,207 | ||||||
4.71%, 01/25/29 (Call 10/25/28)(b) | 22,733 | 23,622,370 | ||||||
5.48%, 01/25/39 (Call 07/25/38)(b) | 14,000 | 14,674,748 | ||||||
5.58%, 01/25/49 (Call 07/25/48)(b) | 18,090 | 19,074,331 | ||||||
NBCUniversal Media LLC | ||||||||
2.88%, 01/15/23(a) | 13,466 | 13,384,012 | ||||||
4.45%, 01/15/43 | 20,224 | 20,068,441 | ||||||
5.95%, 04/01/41(a) | 4,310 | 5,088,782 | ||||||
Time Warner Cable LLC | ||||||||
4.00%, 09/01/21 (Call 06/01/21)(a) | 3,433 | 3,461,189 | ||||||
4.50%, 09/15/42 (Call 03/15/42) | 14,258 | 11,957,232 | ||||||
5.50%, 09/01/41 (Call 03/01/41) | 10,867 | 10,339,443 | ||||||
5.88%, 11/15/40 (Call 05/15/40)(a) | 11,607 | 11,500,247 | ||||||
6.55%, 05/01/37 | 9,280 | 9,870,699 | ||||||
6.75%, 06/15/39(a) | 20,236 | 21,717,510 | ||||||
7.30%, 07/01/38(a) | 20,968 | 23,706,456 | ||||||
Time Warner Entertainment Co. LP | ||||||||
8.38%, 03/15/23 | 15,161 | 17,476,793 | ||||||
8.38%, 07/15/33(a) | 13,949 | 17,630,463 | ||||||
Viacom Inc. | ||||||||
4.25%, 09/01/23 (Call 06/01/23)(a) | 15,085 | 15,433,756 | ||||||
4.38%, 03/15/43 | 17,156 | 14,728,236 | ||||||
5.85%, 09/01/43 (Call 03/01/43)(a) | 17,136 | 17,873,192 | ||||||
6.88%, 04/30/36(a) | 12,593 | 14,309,573 | ||||||
Walt Disney Co. (The) | ||||||||
1.85%, 07/30/26(a) | 5,308 | 4,832,557 | ||||||
2.35%, 12/01/22(a) | 12,574 | 12,355,601 | ||||||
2.75%, 08/16/21 | 1,768 | 1,765,940 | ||||||
2.95%, 06/15/27(a) | 11,411 | 11,173,736 | ||||||
3.00%, 02/13/26 | 15,938 | 15,768,080 | ||||||
3.15%, 09/17/25(a) | 16,120 | 16,198,941 | ||||||
4.13%, 06/01/44(a) | 11,123 | 11,263,329 | ||||||
Warner Media LLC | ||||||||
2.95%, 07/15/26 (Call 04/15/26) | 14,449 | 13,375,640 | ||||||
3.55%, 06/01/24 (Call 03/01/24) | 11,821 | 11,768,289 | ||||||
3.60%, 07/15/25 (Call 04/15/25) | 23,560 | 23,190,732 | ||||||
3.80%, 02/15/27 (Call 11/15/26) | 27,131 | 26,460,672 | ||||||
4.85%, 07/15/45 (Call 01/15/45)(a) | 5,164 | 4,927,736 | ||||||
|
| |||||||
1,660,470,188 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Metal Fabricate & Hardware — 0.1% | ||||||||
Precision Castparts Corp. | ||||||||
2.50%, 01/15/23 (Call 10/15/22)(a) | $ | 18,444 | $ | 18,141,420 | ||||
3.25%, 06/15/25 (Call 03/15/25) | 4,636 | 4,692,965 | ||||||
|
| |||||||
22,834,385 | ||||||||
Mining — 0.5% | ||||||||
Barrick Gold Corp., 5.25%, 04/01/42(a) | 7,980 | 8,292,612 | ||||||
Barrick North America Finance LLC | ||||||||
5.70%, 05/30/41 | 10,068 | 11,047,077 | ||||||
5.75%, 05/01/43(a) | 10,650 | 11,789,288 | ||||||
Barrick PD Australia Finance Pty Ltd., 5.95%, 10/15/39(a) | 12,194 | 13,692,685 | ||||||
BHP Billiton Finance USA Ltd. | ||||||||
2.88%, 02/24/22 | 1,955 | 1,949,034 | ||||||
4.13%, 02/24/42(a) | 10,613 | 10,737,280 | ||||||
5.00%, 09/30/43(a) | 31,244 | 35,535,392 | ||||||
Newmont Mining Corp. | ||||||||
3.50%, 03/15/22 (Call 12/15/21) | 6,862 | 6,891,202 | ||||||
4.88%, 03/15/42 (Call 09/15/41)(a) | 11,029 | 11,005,105 | ||||||
6.25%, 10/01/39(a) | 7,928 | 9,104,486 | ||||||
Rio Tinto Alcan Inc., 6.13%, 12/15/33 | 4,994 | 6,098,283 | ||||||
Rio Tinto Finance USA Ltd. | ||||||||
3.75%, 06/15/25 (Call 03/15/25) | 8,057 | 8,296,586 | ||||||
5.20%, 11/02/40(a) | 18,256 | 20,860,032 | ||||||
7.13%, 07/15/28(a) | 8,971 | 11,386,910 | ||||||
Rio Tinto Finance USA PLC, 4.13%, 08/21/42 (Call 02/21/42)(a) | 11,291 | 11,333,271 | ||||||
|
| |||||||
178,019,243 | ||||||||
Oil & Gas — 5.6% | ||||||||
Anadarko Finance Co., Series B, 7.50%, 05/01/31 | 7,823 | 9,455,784 | ||||||
Anadarko Petroleum Corp. | ||||||||
5.55%, 03/15/26 (Call 12/15/25)(a) | 16,234 | 17,353,014 | ||||||
6.20%, 03/15/40(a) | 11,144 | 12,257,614 | ||||||
6.45%, 09/15/36 | 22,218 | 25,001,409 | ||||||
6.60%, 03/15/46 (Call 09/15/45)(a) | 10,693 | 12,673,311 | ||||||
Apache Corp. | ||||||||
3.25%, 04/15/22 (Call 01/15/22) | 10,116 | 10,018,993 | ||||||
4.25%, 01/15/44 (Call 07/15/43) | 13,354 | 11,399,220 | ||||||
4.75%, 04/15/43 (Call 10/15/42) | 18,564 | 16,868,320 | ||||||
5.10%, 09/01/40 (Call 03/01/40) | 18,379 | 17,347,868 | ||||||
6.00%, 01/15/37 | 8,243 | 8,644,796 | ||||||
BP Capital Markets America Inc. | ||||||||
2.75%, 05/10/23 | 18,913 | 18,631,287 | ||||||
3.02%, 01/16/27 (Call 10/16/26) | 6,821 | 6,580,208 | ||||||
3.12%, 05/04/26 (Call 02/04/26) | 10,472 | 10,244,765 | ||||||
3.22%, 11/28/23 (Call 09/28/23) | 10,246 | 10,269,238 | ||||||
3.22%, 04/14/24 (Call 02/14/24) | 9,746 | 9,759,745 | ||||||
3.25%, 05/06/22 | 9,671 | 9,747,929 | ||||||
3.59%, 04/14/27 (Call 01/14/27) | 2,647 | 2,653,200 | ||||||
3.79%, 02/06/24 (Call 01/06/24) | 10,000 | 10,257,474 | ||||||
3.80%, 09/21/25 (Call 07/21/25)(a) | 10,255 | 10,497,409 | ||||||
4.23%, 11/06/28 (Call 08/06/28) | 18,615 | 19,563,269 | ||||||
BP Capital Markets PLC | ||||||||
2.50%, 11/06/22(a) | 8,963 | 8,800,484 | ||||||
3.06%, 03/17/22(a) | 13,947 | 13,981,770 | ||||||
3.28%, 09/19/27 (Call 06/19/27)(a) | 15,644 | 15,294,978 | ||||||
3.51%, 03/17/25 | 8,773 | 8,852,865 | ||||||
3.54%, 11/04/24 | 12,273 | 12,487,884 | ||||||
3.72%, 11/28/28 (Call 08/28/28)(a) | 7,675 | 7,802,376 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
3.81%, 02/10/24 | $ | 15,383 | $ | 15,803,154 | ||||
3.99%, 09/26/23 | 13,097 | 13,567,244 | ||||||
Canadian Natural Resources Ltd. | ||||||||
2.95%, 01/15/23 (Call 12/15/22) | 9,540 | 9,316,035 | ||||||
3.85%, 06/01/27 (Call 03/01/27)(a) | 15,768 | 15,441,530 | ||||||
4.95%, 06/01/47 (Call 12/01/46) | 9,487 | 9,845,100 | ||||||
6.25%, 03/15/38(a) | 18,369 | 21,262,040 | ||||||
Cenovus Energy Inc. | ||||||||
4.25%, 04/15/27 (Call 01/15/27)(a) | 7,916 | 7,544,056 | ||||||
4.45%, 09/15/42 (Call 03/15/42) | 6,452 | 5,333,968 | ||||||
5.25%, 06/15/37 (Call 12/15/36) | 1,859 | 1,737,572 | ||||||
5.40%, 06/15/47 (Call 12/15/46)(a) | 18,596 | 17,504,716 | ||||||
6.75%, 11/15/39 | 15,121 | 15,874,083 | ||||||
Chevron Corp. | ||||||||
2.36%, 12/05/22 (Call 09/05/22) | 18,561 | 18,255,564 | ||||||
2.57%, 05/16/23 (Call 03/16/23)(a) | 13,135 | 12,957,202 | ||||||
2.90%, 03/03/24 (Call 01/03/24)(a) | 8,805 | 8,767,564 | ||||||
2.95%, 05/16/26 (Call 02/16/26)(a) | 26,959 | 26,497,958 | ||||||
3.19%, 06/24/23 (Call 03/24/23)(a) | 26,116 | 26,378,346 | ||||||
3.33%, 11/17/25 (Call 08/17/25) | 8,408 | 8,508,439 | ||||||
Concho Resources Inc. | ||||||||
3.75%, 10/01/27 (Call 07/01/27)(a) | 17,408 | 16,855,366 | ||||||
4.30%, 08/15/28 (Call 05/15/28)(a) | 7,275 | 7,328,816 | ||||||
4.88%, 10/01/47 (Call 04/01/47)(a) | 7,881 | 7,919,289 | ||||||
ConocoPhillips, 6.50%, 02/01/39(a) | 31,023 | 40,566,453 | ||||||
ConocoPhillips Co. | ||||||||
4.30%, 11/15/44 (Call 05/15/44) | 10,048 | 10,318,863 | ||||||
4.95%, 03/15/26 (Call 12/15/25)(a) | 18,101 | 19,824,956 | ||||||
ConocoPhillips Holding Co., 6.95%, 04/15/29 | 21,464 | 27,251,235 | ||||||
Devon Energy Corp. | ||||||||
3.25%, 05/15/22 (Call 02/15/22)(a) | 11,629 | 11,559,081 | ||||||
4.75%, 05/15/42 (Call 11/15/41) | 13,305 | 12,985,897 | ||||||
5.00%, 06/15/45 (Call 12/15/44) | 4,888 | 4,940,158 | ||||||
5.60%, 07/15/41 (Call 01/15/41) | 8,596 | 9,299,474 | ||||||
5.85%, 12/15/25 (Call 09/15/25) | 947 | 1,044,389 | ||||||
Encana Corp., 6.50%, 08/15/34 | 12,871 | 14,711,102 | ||||||
EOG Resources Inc. | ||||||||
2.63%, 03/15/23 (Call 12/15/22)(a) | 18,984 | 18,618,888 | ||||||
4.15%, 01/15/26 (Call 10/15/25) | 9,761 | 10,143,128 | ||||||
EQT Corp. | ||||||||
3.00%, 10/01/22 (Call 09/01/22) | 14,494 | 13,993,777 | ||||||
3.90%, 10/01/27 (Call 07/01/27)(a) | 5,337 | 4,840,151 | ||||||
4.88%, 11/15/21 | 5,778 | 5,928,189 | ||||||
Equinor ASA | ||||||||
2.45%, 01/17/23(a) | 11,856 | 11,677,302 | ||||||
2.65%, 01/15/24 | 13,971 | 13,769,841 | ||||||
2.75%, 11/10/21(a) | 379 | 378,971 | ||||||
3.15%, 01/23/22 | 2,505 | 2,530,749 | ||||||
3.70%, 03/01/24 | 15,170 | 15,641,848 | ||||||
3.95%, 05/15/43 | 8,121 | 7,956,970 | ||||||
4.80%, 11/08/43 | 4,957 | 5,474,493 | ||||||
5.10%, 08/17/40 | 7,132 | 8,095,500 | ||||||
Exxon Mobil Corp. | ||||||||
2.40%, 03/06/22 (Call 01/06/22)(a) | 6,450 | 6,385,045 | ||||||
2.71%, 03/06/25 (Call 12/06/24)(a) | 16,689 | 16,450,252 | ||||||
2.73%, 03/01/23 (Call 01/01/23) | 17,801 | 17,774,080 | ||||||
3.04%, 03/01/26 (Call 12/01/25)(a) | 38,109 | 37,887,659 | ||||||
3.18%, 03/15/24 (Call 12/15/23)(a) | 8,132 | 8,232,282 | ||||||
3.57%, 03/06/45 (Call 09/06/44)(a) | 7,147 | 6,848,157 | ||||||
4.11%, 03/01/46 (Call 09/01/45)(a) | 31,124 | 32,383,305 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
Hess Corp. | ||||||||
4.30%, 04/01/27 (Call 01/01/27) | $ | 11,421 | $ | 11,046,666 | ||||
5.60%, 02/15/41 | 11,972 | 11,632,399 | ||||||
6.00%, 01/15/40 | 9,472 | 9,504,271 | ||||||
Marathon Oil Corp. | ||||||||
2.80%, 11/01/22 (Call 08/01/22)(a) | 2,964 | 2,888,783 | ||||||
3.85%, 06/01/25 (Call 03/01/25) | 11,322 | 11,184,794 | ||||||
4.40%, 07/15/27 (Call 04/15/27)(a) | 13,917 | 14,026,152 | ||||||
6.60%, 10/01/37 | 12,813 | 14,705,123 | ||||||
Marathon Petroleum Corp. | ||||||||
3.63%, 09/15/24 (Call 06/15/24) | 9,762 | 9,643,378 | ||||||
4.75%, 09/15/44 (Call 03/15/44) | 9,702 | 9,298,759 | ||||||
5.13%, 12/15/26 (Call 09/15/26)(b) | 237 | 250,676 | ||||||
6.50%, 03/01/41 (Call 09/01/40)(a) | 14,505 | 16,899,928 | ||||||
Noble Energy Inc. | ||||||||
4.15%, 12/15/21 (Call 09/15/21) | 5,473 | 5,569,301 | ||||||
5.05%, 11/15/44 (Call 05/15/44) | 12,774 | 11,968,083 | ||||||
5.25%, 11/15/43 (Call 05/15/43) | 9,853 | 9,418,360 | ||||||
6.00%, 03/01/41 (Call 09/01/40) | 10,060 | 10,439,264 | ||||||
Occidental Petroleum Corp. | ||||||||
2.70%, 02/15/23 (Call 11/15/22) | 11,395 | 11,238,727 | ||||||
3.00%, 02/15/27 (Call 11/15/26) | 5,326 | 5,178,097 | ||||||
3.13%, 02/15/22 (Call 11/15/21)(a) | 2,995 | 3,014,208 | ||||||
3.40%, 04/15/26 (Call 01/15/26)(a) | 12,335 | 12,360,686 | ||||||
3.50%, 06/15/25 (Call 03/15/25) | 6,520 | 6,595,831 | ||||||
4.10%, 02/15/47 (Call 08/15/46)(a) | 12,878 | 12,594,571 | ||||||
4.20%, 03/15/48 (Call 09/15/47)(a) | 11,258 | 11,248,926 | ||||||
4.40%, 04/15/46 (Call 10/15/45) | 12,113 | 12,395,503 | ||||||
4.63%, 06/15/45 (Call 12/15/44) | 14,864 | 15,608,233 | ||||||
Petro-Canada, 6.80%, 05/15/38(a) | 11,460 | 14,225,802 | ||||||
Phillips 66 | ||||||||
3.90%, 03/15/28 (Call 12/15/27)(a) | 5,134 | 5,113,474 | ||||||
4.30%, 04/01/22 | 13,799 | 14,288,717 | ||||||
4.65%, 11/15/34 (Call 05/15/34) | 20,112 | 20,791,454 | ||||||
4.88%, 11/15/44 (Call 05/15/44)(a) | 21,982 | 22,896,557 | ||||||
5.88%, 05/01/42(a) | 19,272 | 22,343,375 | ||||||
Shell International Finance BV | ||||||||
1.75%, 09/12/21(a) | 3,757 | 3,660,892 | ||||||
2.25%, 01/06/23 | 16,355 | 15,968,409 | ||||||
2.38%, 08/21/22(a) | 15,175 | 14,938,633 | ||||||
2.50%, 09/12/26 | 20,195 | 19,090,467 | ||||||
2.88%, 05/10/26(a) | 24,185 | 23,500,412 | ||||||
3.25%, 05/11/25 | 31,647 | 31,775,579 | ||||||
3.40%, 08/12/23(a) | 5,839 | 5,951,533 | ||||||
3.50%, 11/13/23 (Call 10/13/23) | 11,000 | 11,241,229 | ||||||
3.75%, 09/12/46(a) | 13,223 | 12,598,328 | ||||||
3.88%, 11/13/28 (Call 08/13/28)(a) | 19,260 | 19,943,682 | ||||||
4.00%, 05/10/46(a) | 27,588 | 27,575,036 | ||||||
4.13%, 05/11/35(a) | 9,008 | 9,285,692 | ||||||
4.38%, 05/11/45 | 38,719 | 40,706,922 | ||||||
4.55%, 08/12/43 | 22,622 | 24,360,740 | ||||||
5.50%, 03/25/40 | 8,481 | 10,139,151 | ||||||
6.38%, 12/15/38(a) | 24,673 | 32,152,938 | ||||||
Suncor Energy Inc. | ||||||||
3.60%, 12/01/24 (Call 09/01/24)(a) | 9,384 | 9,451,777 | ||||||
4.00%, 11/15/47 (Call 05/15/47)(a) | 11,575 | 10,761,304 | ||||||
6.50%, 06/15/38 | 14,727 | 17,860,730 | ||||||
6.85%, 06/01/39(a) | 6,361 | 7,981,460 | ||||||
Total Capital Canada Ltd., 2.75%, 07/15/23 | 2,047 | 2,018,918 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
Total Capital International SA | ||||||||
2.70%, 01/25/23(a) | $ | 14,952 | $ | 14,779,396 | ||||
2.75%, 06/19/21(a) | 5,203 | 5,197,718 | ||||||
2.88%, 02/17/22(a) | 3,480 | 3,481,802 | ||||||
3.46%, 02/19/29 (Call 11/19/28) | 15,580 | 15,548,077 | ||||||
3.70%, 01/15/24 | 8,718 | 8,946,026 | ||||||
3.75%, 04/10/24(a) | 10,025 | 10,308,839 | ||||||
Total Capital SA, 3.88%, 10/11/28 | 21,525 | 22,279,326 | ||||||
Valero Energy Corp. | ||||||||
3.40%, 09/15/26 (Call 06/15/26) | 14,131 | 13,539,280 | ||||||
4.35%, 06/01/28 (Call 03/01/28)(a) | 13,915 | 14,097,998 | ||||||
6.63%, 06/15/37(a) | 17,380 | 20,597,770 | ||||||
7.50%, 04/15/32 | 5,745 | 7,144,295 | ||||||
|
| |||||||
1,805,909,904 | ||||||||
Oil & Gas Services — 0.6% | ||||||||
Baker Hughes a GE Co. LLC, 5.13%, 09/15/40(a) | 2,833 | 2,871,174 | ||||||
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor Inc. | ||||||||
2.77%, 12/15/22 (Call 11/15/22) | 4,638 | 4,565,677 | ||||||
3.34%, 12/15/27 (Call 09/15/27)(a) | 15,802 | 14,987,400 | ||||||
4.08%, 12/15/47 (Call 06/15/47)(a) | 25,049 | 22,055,775 | ||||||
Halliburton Co. | ||||||||
3.50%, 08/01/23 (Call 05/01/23) | 13,834 | 13,958,881 | ||||||
3.80%, 11/15/25 (Call 08/15/25)(a) | 26,488 | 26,749,609 | ||||||
4.75%, 08/01/43 (Call 02/01/43)(a) | 12,661 | 12,567,532 | ||||||
4.85%, 11/15/35 (Call 05/15/35) | 7,531 | 7,615,506 | ||||||
5.00%, 11/15/45 (Call 05/15/45)(a) | 31,433 | 32,310,534 | ||||||
6.70%, 09/15/38(a) | 10,428 | 12,687,789 | ||||||
7.45%, 09/15/39(a) | 8,185 | 10,735,132 | ||||||
National Oilwell Varco Inc. | ||||||||
2.60%, 12/01/22 (Call 09/01/22)(a) | 4,536 | 4,396,485 | ||||||
3.95%, 12/01/42 (Call 06/01/42) | 12,532 | 10,225,760 | ||||||
Schlumberger Investment SA, 3.65%, 12/01/23 (Call 09/01/23)(a) | 7,251 | 7,446,160 | ||||||
|
| |||||||
183,173,414 | ||||||||
Packaging & Containers — 0.0% | ||||||||
WRKCo Inc., 4.65%, 03/15/26 (Call 01/15/26)(a) | 3,790 | 3,900,132 | ||||||
|
| |||||||
Pharmaceuticals — 7.9% | ||||||||
AbbVie Inc. | ||||||||
2.85%, 05/14/23 (Call 03/14/23)(a) | 15,985 | 15,606,068 | ||||||
2.90%, 11/06/22(a) | 32,907 | 32,473,394 | ||||||
3.20%, 11/06/22 (Call 09/06/22)(a) | 9,660 | 9,613,734 | ||||||
3.20%, 05/14/26 (Call 02/14/26)(a) | 26,246 | 24,744,401 | ||||||
3.60%, 05/14/25 (Call 02/14/25)(a) | 34,598 | 34,063,665 | ||||||
3.75%, 11/14/23 (Call 10/14/23)(a) | 18,505 | 18,685,570 | ||||||
4.25%, 11/14/28 (Call 08/14/28)(a) | 27,276 | 26,980,945 | ||||||
4.30%, 05/14/36 (Call 11/14/35)(a) | 15,327 | 13,918,855 | ||||||
4.40%, 11/06/42(a) | 27,442 | 24,347,209 | ||||||
4.45%, 05/14/46 (Call 11/14/45)(a) | 24,828 | 21,904,694 | ||||||
4.50%, 05/14/35 (Call 11/14/34) | 29,731 | 27,765,623 | ||||||
4.70%, 05/14/45 (Call 11/14/44)(a) | 28,965 | 26,526,712 | ||||||
4.88%, 11/14/48 (Call 05/14/48)(a) | 21,120 | 19,857,860 | ||||||
Allergan Finance LLC, 3.25%, 10/01/22 (Call 07/01/22)(a) | 26,051 | 25,695,141 | ||||||
Allergan Funding SCS | ||||||||
3.45%, 03/15/22 (Call 01/15/22) | 31,453 | 31,313,364 | ||||||
3.80%, 03/15/25 (Call 12/15/24)(a) | 43,184 | 42,687,466 | ||||||
3.85%, 06/15/24 (Call 03/15/24)(a) | 9,811 | 9,773,685 | ||||||
4.55%, 03/15/35 (Call 09/15/34)(a) | 36,190 | 33,707,420 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
4.75%, 03/15/45 (Call 09/15/44)(a) | $ | 17,260 | $ | 15,974,373 | ||||
4.85%, 06/15/44 (Call 12/15/43)(a) | 7,911 | 7,313,372 | ||||||
AstraZeneca PLC | ||||||||
2.38%, 06/12/22 (Call 05/12/22)(a) | 14,689 | 14,355,876 | ||||||
3.13%, 06/12/27 (Call 03/12/27) | 12,920 | 12,233,018 | ||||||
3.38%, 11/16/25(a) | 29,763 | 29,255,312 | ||||||
3.50%, 08/17/23 (Call 07/17/23) | 10,000 | 10,051,087 | ||||||
4.00%, 01/17/29 (Call 10/17/28)(a) | 13,884 | 14,006,154 | ||||||
4.00%, 09/18/42 | 15,595 | 14,259,170 | ||||||
4.38%, 11/16/45(a) | 11,376 | 11,003,974 | ||||||
4.38%, 08/17/48 (Call 02/17/48)(a) | 8,552 | 8,240,051 | ||||||
6.45%, 09/15/37(a) | 30,699 | 37,265,522 | ||||||
Bristol-Myers Squibb Co. | ||||||||
2.00%, 08/01/22(a) | 9,770 | 9,477,978 | ||||||
3.25%, 02/27/27(a) | 11,172 | 10,864,473 | ||||||
Cardinal Health Inc. | ||||||||
2.62%, 06/15/22 (Call 05/15/22) | 10,090 | 9,799,571 | ||||||
3.08%, 06/15/24 (Call 04/15/24)(a) | 10,810 | 10,359,138 | ||||||
3.41%, 06/15/27 (Call 03/15/27)(a) | 15,447 | 14,442,136 | ||||||
Cigna Corp. | ||||||||
3.75%, 07/15/23 (Call 06/15/23)(a)(b) | 35,577 | 35,999,836 | ||||||
4.13%, 11/15/25 (Call 09/15/25)(b) | 27,356 | 27,789,628 | ||||||
4.38%, 10/15/28 (Call 07/15/28)(a)(b) | 41,397 | 41,953,305 | ||||||
4.80%, 08/15/38 (Call 02/15/38)(a)(b) | 31,686 | 31,546,762 | ||||||
4.90%, 12/15/48 (Call 06/15/48)(a)(b) | 32,968 | 32,586,639 | ||||||
CVS Health Corp. | ||||||||
2.75%, 12/01/22 (Call 09/01/22) | 14,242 | 13,909,129 | ||||||
2.88%, 06/01/26 (Call 03/01/26)(a) | 20,577 | 19,145,606 | ||||||
3.50%, 07/20/22 (Call 05/20/22)(a) | 12,835 | 12,893,689 | ||||||
3.70%, 03/09/23 (Call 02/09/23)(a) | 69,383 | 69,731,441 | ||||||
3.88%, 07/20/25 (Call 04/20/25)(a) | 30,652 | 30,615,368 | ||||||
4.00%, 12/05/23 (Call 09/05/23) | 16,059 | 16,330,680 | ||||||
4.10%, 03/25/25 (Call 01/25/25)(a) | 66,571 | 67,467,538 | ||||||
4.30%, 03/25/28 (Call 12/25/27)(a) | 103,273 | 103,295,049 | ||||||
4.78%, 03/25/38 (Call 09/25/37) | 55,236 | 53,749,550 | ||||||
5.05%, 03/25/48 (Call 09/25/47)(a) | 91,878 | 90,875,795 | ||||||
5.13%, 07/20/45 (Call 01/20/45)(a) | 44,860 | 44,614,306 | ||||||
5.30%, 12/05/43 (Call 06/05/43)(a) | 5,980 | 6,067,585 | ||||||
Eli Lilly & Co. | ||||||||
2.35%, 05/15/22(a) | 5,783 | 5,719,839 | ||||||
2.75%, 06/01/25 (Call 03/01/25)(a) | 11,170 | 10,941,299 | ||||||
3.10%, 05/15/27 (Call 02/15/27)(a) | 9,801 | 9,624,339 | ||||||
3.38%, 03/15/29 (Call 12/15/28) | 12,755 | 12,666,621 | ||||||
3.70%, 03/01/45 (Call 09/01/44) | 9,881 | 9,391,251 | ||||||
3.88%, 03/15/39 (Call 09/15/38) | 10,000 | 9,849,367 | ||||||
3.95%, 05/15/47 (Call 11/15/46)(a) | 12,755 | 12,582,342 | ||||||
3.95%, 03/15/49 (Call 09/15/48) | 17,315 | 16,922,259 | ||||||
4.15%, 03/15/59 (Call 09/15/58) | 10,000 | 9,757,579 | ||||||
Express Scripts Holding Co. | ||||||||
3.00%, 07/15/23 (Call 05/15/23) | 11,185 | 10,962,904 | ||||||
3.40%, 03/01/27 (Call 12/01/26)(a) | 21,406 | 20,374,685 | ||||||
3.50%, 06/15/24 (Call 03/15/24) | 13,481 | 13,351,471 | ||||||
3.90%, 02/15/22(a) | 7,442 | 7,596,947 | ||||||
4.50%, 02/25/26 (Call 11/27/25)(a) | 17,032 | 17,436,285 | ||||||
4.75%, 11/15/21 | 3,044 | 3,158,791 | ||||||
4.80%, 07/15/46 (Call 01/15/46)(a) | 20,687 | 20,332,532 | ||||||
GlaxoSmithKline Capital Inc. | ||||||||
2.80%, 03/18/23(a) | 6,446 | 6,385,628 | ||||||
3.38%, 05/15/23(a) | 21,147 | 21,389,118 | ||||||
3.63%, 05/15/25(a) | 18,433 | 18,762,213 |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
3.88%, 05/15/28(a) | $ | 21,899 | $ | 22,459,325 | ||||
6.38%, 05/15/38(a) | 32,408 | 41,121,179 | ||||||
GlaxoSmithKline Capital PLC, | 19,319 | 19,260,122 | ||||||
Johnson & Johnson | ||||||||
2.25%, 03/03/22 (Call 02/03/22)(a) | 4,698 | 4,637,256 | ||||||
2.45%, 03/01/26 (Call 12/01/25)(a) | 28,683 | 27,392,411 | ||||||
2.63%, 01/15/25 (Call 11/15/24)(a) | 9,511 | 9,348,138 | ||||||
2.90%, 01/15/28 (Call 10/15/27)(a) | 16,129 | 15,657,362 | ||||||
2.95%, 03/03/27 (Call 12/03/26) | 7,637 | 7,447,702 | ||||||
3.38%, 12/05/23(a) | 6,783 | 6,958,540 | ||||||
3.40%, 01/15/38 (Call 07/15/37)(a) | 24,883 | 23,673,627 | ||||||
3.50%, 01/15/48 (Call 07/15/47)(a) | 12,252 | 11,502,506 | ||||||
3.55%, 03/01/36 (Call 09/01/35) | 11,406 | 11,036,383 | ||||||
3.63%, 03/03/37 (Call 09/03/36) | 15,850 | 15,446,678 | ||||||
3.70%, 03/01/46 (Call 09/01/45)(a) | 14,157 | 13,748,879 | ||||||
3.75%, 03/03/47 (Call 09/03/46)(a) | 15,477 | 15,152,639 | ||||||
4.38%, 12/05/33 (Call 06/05/33) | 8,119 | 8,722,314 | ||||||
5.95%, 08/15/37 | 17,809 | 22,458,132 | ||||||
McKesson Corp., 3.80%, 03/15/24 (Call 12/15/23)(a) | 4,250 | 4,266,762 | ||||||
Mead Johnson Nutrition Co., 4.13%, 11/15/25 (Call 08/15/25)(a) | 10,893 | 11,356,335 | ||||||
Merck & Co. Inc. | ||||||||
2.35%, 02/10/22(a) | 2,810 | 2,780,272 | ||||||
2.40%, 09/15/22 (Call 06/15/22)(a) | 7,942 | 7,830,170 | ||||||
2.75%, 02/10/25 (Call 11/10/24)(a) | 35,181 | 34,456,472 | ||||||
2.80%, 05/18/23 | 14,917 | 14,846,159 | ||||||
3.70%, 02/10/45 (Call 08/10/44)(a) | 30,407 | 28,941,027 | ||||||
4.15%, 05/18/43(a) | 8,933 | 9,133,339 | ||||||
Mylan Inc. | ||||||||
4.55%, 04/15/28 (Call 01/15/28) | 13,049 | 12,306,815 | ||||||
5.20%, 04/15/48 (Call 10/15/47) | 2,475 | 2,105,816 | ||||||
Mylan NV | ||||||||
3.95%, 06/15/26 (Call 03/15/26)(a) | 32,740 | 30,576,269 | ||||||
3.95%, 06/15/26 (Call 03/15/26)(b) | 1,937 | 1,811,037 | ||||||
5.25%, 06/15/46 (Call 12/15/45)(a) | 7,957 | 6,863,469 | ||||||
Novartis Capital Corp. | ||||||||
2.40%, 05/17/22 (Call 04/17/22) | 10,528 | 10,402,795 | ||||||
2.40%, 09/21/22(a) | 20,989 | 20,658,979 | ||||||
3.00%, 11/20/25 (Call 08/20/25)(a) | 11,326 | 11,260,225 | ||||||
3.10%, 05/17/27 (Call 02/17/27)(a) | 9,462 | 9,328,455 | ||||||
3.40%, 05/06/24(a) | 30,111 | 30,795,137 | ||||||
4.00%, 11/20/45 (Call 05/20/45)(a) | 19,956 | 19,976,688 | ||||||
4.40%, 05/06/44(a) | 21,062 | 22,391,735 | ||||||
Pfizer Inc. | ||||||||
2.20%, 12/15/21(a) | 3,007 | 2,966,589 | ||||||
2.75%, 06/03/26 | 26,054 | 25,149,825 | ||||||
3.00%, 06/15/23(a) | 14,875 | 14,973,172 | ||||||
3.00%, 12/15/26(a) | 34,056 | 33,328,094 | ||||||
3.20%, 09/15/23 (Call 08/15/23) | 6,468 | 6,558,433 | ||||||
3.40%, 05/15/24(a) | 17,271 | 17,723,452 | ||||||
3.60%, 09/15/28 (Call 06/15/28) | 12,380 | 12,593,426 | ||||||
4.00%, 12/15/36 | 14,137 | 14,263,865 | ||||||
4.10%, 09/15/38 (Call 03/15/38)(a) | 1,890 | 1,925,287 | ||||||
4.13%, 12/15/46 | 10,426 | 10,547,822 | ||||||
4.20%, 09/15/48 (Call 03/15/48)(a) | 18,669 | 19,177,497 | ||||||
4.30%, 06/15/43 | 11,383 | 11,771,864 | ||||||
4.40%, 05/15/44 | 5,279 | 5,548,217 | ||||||
7.20%, 03/15/39(a) | 22,576 | 31,827,597 | ||||||
Sanofi, 3.38%, 06/19/23 (Call 05/19/23)(a) | 4,037 | 4,099,778 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Shire Acquisitions Investments Ireland DAC | ||||||||
2.40%, 09/23/21 (Call 08/23/21)(a) | $ | 3,046 | $ | 2,973,373 | ||||
2.88%, 09/23/23 (Call 07/23/23)(a) | 25,798 | 24,951,057 | ||||||
3.20%, 09/23/26 (Call 06/23/26) | 34,344 | 32,292,966 | ||||||
Takeda Pharmaceutical Co. Ltd. | ||||||||
4.40%, 11/26/23 (Call 10/26/23)(b) | 14,600 | 15,086,088 | ||||||
5.00%, 11/26/28 (Call 08/26/28)(a)(b) | 22,885 | 23,958,036 | ||||||
Wyeth LLC | ||||||||
5.95%, 04/01/37 | 18,774 | 23,153,032 | ||||||
6.50%, 02/01/34 | 10,007 | 12,969,563 | ||||||
Zoetis Inc. | ||||||||
3.00%, 09/12/27 (Call 06/12/27) | 10,028 | 9,349,453 | ||||||
3.25%, 02/01/23 (Call 11/01/22)(a) | 18,707 | 18,633,734 | ||||||
3.95%, 09/12/47 (Call 03/12/47) | 903 | 815,389 | ||||||
4.50%, 11/13/25 (Call 08/13/25) | 9,198 | 9,632,065 | ||||||
4.70%, 02/01/43 (Call 08/01/42)(a) | 11,770 | 11,992,856 | ||||||
|
| |||||||
2,570,718,066 | ||||||||
Pipelines — 3.6% | ||||||||
Andeavor Logistics LP/Tesoro Logistics Finance Corp. | ||||||||
4.25%, 12/01/27 (Call 09/01/27)(a) | 1,525 | 1,498,674 | ||||||
5.25%, 01/15/25 (Call 01/15/21) | 1,850 | 1,890,899 | ||||||
Columbia Pipeline Group Inc., 4.50%, 06/01/25 (Call 03/01/25) | 9,647 | 9,842,205 | ||||||
Enable Midstream Partners LP, 4.95%, 05/15/28 (Call 02/15/28) | 13,127 | 13,014,974 | ||||||
Enbridge Inc. | ||||||||
4.00%, 10/01/23 (Call 07/01/23) | 1,275 | 1,297,792 | ||||||
4.25%, 12/01/26 (Call 09/01/26)(a) | 10,080 | 10,272,694 | ||||||
5.50%, 12/01/46 (Call 06/01/46)(a) | 9,816 | 11,162,920 | ||||||
Energy Transfer Operating LP | ||||||||
3.60%, 02/01/23 (Call 11/01/22) | 6,750 | 6,720,313 | ||||||
4.05%, 03/15/25 (Call 12/15/24)(a) | 12,510 | 12,426,640 | ||||||
4.50%, 04/15/24 (Call 03/15/24) | 10,000 | 10,285,687 | ||||||
4.75%, 01/15/26 (Call 10/15/25)(a) | 9,671 | 9,854,058 | ||||||
4.95%, 06/15/28 (Call 03/15/28)(a) | 3,837 | 3,921,225 | ||||||
5.15%, 03/15/45 (Call 09/15/44)(a) | 13,275 | 12,373,310 | ||||||
5.20%, 02/01/22 (Call 11/01/21) | 2,422 | 2,521,610 | ||||||
5.25%, 04/15/29 (Call 01/15/29)(a) | 15,029 | 15,696,441 | ||||||
5.30%, 04/15/47 (Call 10/15/46) | 18,206 | 17,168,232 | ||||||
6.13%, 12/15/45 (Call 06/15/45)(a) | 10,419 | 10,759,005 | ||||||
6.25%, 04/15/49 (Call 10/15/48) | 20,955 | 22,427,105 | ||||||
6.50%, 02/01/42 (Call 08/01/41)(a) | 12,923 | 13,949,487 | ||||||
Series 30Y, 6.00%, 06/15/48 (Call 12/15/47)(a) | 11,354 | 11,746,820 | ||||||
Energy Transfer Partners LP/Regency Energy Finance Corp., 5.88%, 03/01/22 (Call 12/01/21) | 8,036 | 8,514,400 | ||||||
Enterprise Products Operating LLC | ||||||||
3.35%, 03/15/23 (Call 12/15/22)(a) | 15,215 | 15,253,337 | ||||||
3.70%, 02/15/26 (Call 11/15/25)(a) | 9,133 | 9,147,582 | ||||||
3.75%, 02/15/25 (Call 11/15/24)(a) | 14,021 | 14,206,090 | ||||||
3.90%, 02/15/24 (Call 11/15/23)(a) | 12,139 | 12,412,880 | ||||||
3.95%, 02/15/27 (Call 11/15/26) | 10 | 10,156 | ||||||
4.15%, 10/16/28 (Call 07/16/28)(a) | 11,855 | 12,165,845 | ||||||
4.25%, 02/15/48 (Call 08/15/47)(a) | 15,602 | 14,638,940 | ||||||
4.45%, 02/15/43 (Call 08/15/42)(a) | 12,984 | 12,564,869 | ||||||
4.80%, 02/01/49 (Call 08/01/48) | 12,280 | 12,502,785 | ||||||
4.85%, 08/15/42 (Call 02/15/42) | 11,904 | 12,039,503 | ||||||
4.85%, 03/15/44 (Call 09/15/43)(a) | 16,308 | 16,675,693 | ||||||
4.90%, 05/15/46 (Call 11/15/45)(a) | 8,964 | 9,216,892 | ||||||
5.10%, 02/15/45 (Call 08/15/44) | 16,079 | 16,943,328 | ||||||
5.95%, 02/01/41 | 10,201 | 11,645,372 |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
EQM Midstream Partners LP | ||||||||
4.75%, 07/15/23 (Call 06/15/23) | $ | 2,073 | $ | 2,085,312 | ||||
5.50%, 07/15/28 (Call 04/15/28) | 12,675 | 12,629,127 | ||||||
Kinder Morgan Energy Partners LP | ||||||||
3.95%, 09/01/22 (Call 06/01/22)(a) | 8,220 | 8,360,136 | ||||||
5.50%, 03/01/44 (Call 09/01/43) | 10,254 | 10,588,405 | ||||||
6.95%, 01/15/38 | 12,632 | 15,102,914 | ||||||
Kinder Morgan Inc./DE | ||||||||
3.15%, 01/15/23 (Call 12/15/22)(a) | 10,645 | 10,532,041 | ||||||
4.30%, 06/01/25 (Call 03/01/25)(a) | 16,991 | 17,416,093 | ||||||
4.30%, 03/01/28 (Call 12/01/27)(a) | 14,065 | 14,205,715 | ||||||
5.05%, 02/15/46 (Call 08/15/45) | 7,946 | 7,827,704 | ||||||
5.20%, 03/01/48 (Call 09/01/47)(a) | 12,167 | 12,310,912 | ||||||
5.30%, 12/01/34 (Call 06/01/34) | 14,741 | 15,318,847 | ||||||
5.55%, 06/01/45 (Call 12/01/44)(a) | 17,350 | 18,208,214 | ||||||
7.75%, 01/15/32 | 11,181 | 14,047,342 | ||||||
MPLX LP | ||||||||
4.00%, 03/15/28 (Call 12/15/27)(a) | 14,567 | 14,089,977 | ||||||
4.13%, 03/01/27 (Call 12/01/26)(a) | 14,631 | 14,341,115 | ||||||
4.50%, 07/15/23 (Call 04/15/23)(a) | 13,820 | 14,306,995 | ||||||
4.50%, 04/15/38 (Call 10/15/37) | 18,382 | 16,909,723 | ||||||
4.70%, 04/15/48 (Call 10/15/47) | 17,826 | 16,276,648 | ||||||
4.80%, 02/15/29 (Call 11/15/28) | 9,628 | 9,861,720 | ||||||
4.88%, 12/01/24 (Call 09/01/24) | 17,694 | 18,480,845 | ||||||
4.88%, 06/01/25 (Call 03/01/25)(a) | 14,753 | 15,363,702 | ||||||
5.20%, 03/01/47 (Call 09/01/46)(a) | 9,343 | 9,131,592 | ||||||
5.50%, 02/15/49 (Call 08/15/48) | 19,151 | 19,620,027 | ||||||
ONEOK Inc., 4.55%, 07/15/28 (Call 04/15/28)(a) | 10,353 | 10,499,831 | ||||||
ONEOK Partners LP, 3.38%, 10/01/22 (Call 07/01/22) | 8,912 | 8,917,441 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | ||||||||
3.60%, 11/01/24 (Call 08/01/24) | 7,451 | 7,260,576 | ||||||
3.65%, 06/01/22 (Call 03/01/22) | 6,917 | 6,908,166 | ||||||
4.50%, 12/15/26 (Call 09/15/26)(a) | 5,034 | 5,035,981 | ||||||
4.65%, 10/15/25 (Call 07/15/25)(a) | 17,035 | 17,442,234 | ||||||
Sabine Pass Liquefaction LLC | ||||||||
4.20%, 03/15/28 (Call 09/15/27) | 21,040 | 20,752,335 | ||||||
5.00%, 03/15/27 (Call 09/15/26) | 13,437 | 13,946,895 | ||||||
5.63%, 04/15/23 (Call 01/15/23)(a) | 19,687 | 20,993,390 | ||||||
5.63%, 03/01/25 (Call 12/01/24)(a) | 18,479 | 19,969,241 | ||||||
5.75%, 05/15/24 (Call 02/15/24)(a) | 19,536 | 21,125,287 | ||||||
5.88%, 06/30/26 (Call 12/31/25)(a) | 23,667 | 25,817,372 | ||||||
6.25%, 03/15/22 (Call 12/15/21)(a) | 4,362 | 4,666,497 | ||||||
Spectra Energy Partners LP, 4.75%, 03/15/24 (Call 12/15/23) | 3,893 | 4,076,363 | ||||||
Sunoco Logistics Partners Operations LP | ||||||||
4.00%, 10/01/27 (Call 07/01/27)(a) | 13,288 | 12,729,382 | ||||||
5.35%, 05/15/45 (Call 11/15/44) | 9,279 | 8,770,244 | ||||||
5.40%, 10/01/47 (Call 04/01/47)(a) | 17,354 | 16,588,999 | ||||||
TransCanada PipeLines Ltd. | ||||||||
2.50%, 08/01/22(a) | 11,901 | 11,672,519 | ||||||
4.25%, 05/15/28 (Call 02/15/28)(a) | 16,372 | 16,691,468 | ||||||
4.63%, 03/01/34 (Call 12/01/33) | 15,164 | 15,426,907 | ||||||
4.88%, 01/15/26 (Call 10/15/25)(a) | 12,742 | 13,468,104 | ||||||
4.88%, 05/15/48 (Call 11/15/47)(a) | 12,427 | 12,505,555 | ||||||
5.10%, 03/15/49 (Call 09/15/48)(a) | 12,635 | 13,052,980 | ||||||
6.10%, 06/01/40(a) | 11,319 | 12,970,624 | ||||||
6.20%, 10/15/37 | 12,408 | 14,229,280 | ||||||
7.63%, 01/15/39(a) | 13,842 | 18,196,790 | ||||||
Transcontinental Gas Pipe Line Co. LLC, 7.85%, 02/01/26 (Call 11/01/25)(a) | 10,450 | 12,804,162 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
Williams Companies Inc. (The) | ||||||||
3.35%, 08/15/22 (Call 05/15/22) | $ | 10,078 | $ | 10,025,198 | ||||
3.60%, 03/15/22 (Call 01/15/22) | 14,204 | 14,287,792 | ||||||
3.75%, 06/15/27 (Call 03/15/27) | 18,735 | 18,171,341 | ||||||
3.90%, 01/15/25 (Call 10/15/24)(a) | 8,525 | 8,543,988 | ||||||
4.00%, 09/15/25 (Call 06/15/25) | 8,995 | 9,044,718 | ||||||
4.30%, 03/04/24 (Call 12/04/23)(a) | 16,244 | 16,631,065 | ||||||
4.85%, 03/01/48 (Call 09/01/47)(a) | 8,290 | 7,934,135 | ||||||
5.10%, 09/15/45 (Call 03/15/45) | 12,611 | 12,486,553 | ||||||
6.30%, 04/15/40(a) | 16,690 | 18,805,676 | ||||||
|
| |||||||
1,166,231,958 | ||||||||
Real Estate Investment Trusts — 1.3% | ||||||||
American Tower Corp. | ||||||||
3.38%, 10/15/26 (Call 07/15/26) | 12,552 | 11,996,717 | ||||||
3.50%, 01/31/23(a) | 12,858 | 12,838,764 | ||||||
3.55%, 07/15/27 (Call 04/15/27) | 7,023 | 6,732,665 | ||||||
4.00%, 06/01/25 (Call 03/01/25) | 13,499 | 13,609,435 | ||||||
5.00%, 02/15/24 | 17,194 | 18,220,753 | ||||||
Boston Properties LP | ||||||||
2.75%, 10/01/26 (Call 07/01/26) | 13,324 | 12,328,858 | ||||||
3.20%, 01/15/25 (Call 10/15/24)(a) | 8,019 | 7,782,698 | ||||||
3.65%, 02/01/26 (Call 11/03/25)(a) | 6,739 | 6,640,460 | ||||||
3.85%, 02/01/23 (Call 11/01/22) | 11,852 | 12,030,194 | ||||||
4.50%, 12/01/28 (Call 09/01/28)(a) | 8,280 | 8,599,518 | ||||||
CC Holdings GS V LLC/Crown Castle GS III Corp., 3.85%, 04/15/23 | 12,941 | 13,028,251 | ||||||
Crown Castle International Corp. | ||||||||
3.15%, 07/15/23 (Call 06/15/23)(a) | 9,368 | 9,177,491 | ||||||
3.20%, 09/01/24 (Call 07/01/24) | 8,726 | 8,467,194 | ||||||
3.65%, 09/01/27 (Call 06/01/27)(a) | 20,206 | 19,407,758 | ||||||
3.70%, 06/15/26 (Call 03/15/26)(a) | 11,329 | 11,038,080 | ||||||
3.80%, 02/15/28 (Call 11/15/27)(a) | 18,571 | 17,976,238 | ||||||
4.45%, 02/15/26 (Call 11/15/25)(a) | 12,583 | 12,834,228 | ||||||
4.88%, 04/15/22 | 5,811 | 6,040,218 | ||||||
5.25%, 01/15/23(a) | 15,768 | 16,650,333 | ||||||
Digital Realty Trust LP, 3.70%, 08/15/27 (Call 05/15/27)(a) | 12,874 | 12,409,897 | ||||||
ERP Operating LP | ||||||||
4.50%, 07/01/44 (Call 01/01/44)(a) | 11,073 | 11,398,999 | ||||||
4.63%, 12/15/21 (Call 09/15/21)(a) | 2,037 | 2,114,896 | ||||||
GLP Capital LP/GLP Financing II Inc. | ||||||||
5.25%, 06/01/25 (Call 03/01/25) | 11,382 | 11,767,215 | ||||||
5.30%, 01/15/29 (Call 10/15/28) | 12,023 | 12,193,011 | ||||||
5.38%, 04/15/26 | 12,697 | 13,087,423 | ||||||
HCP Inc. | ||||||||
3.88%, 08/15/24 (Call 05/17/24)(a) | 9,703 | 9,723,717 | ||||||
4.00%, 06/01/25 (Call 03/01/25)(a) | 11,288 | 11,324,972 | ||||||
4.25%, 11/15/23 (Call 08/15/23)(a) | 6,303 | 6,425,782 | ||||||
Realty Income Corp. | ||||||||
3.25%, 10/15/22 (Call 07/15/22) | 3,282 | 3,293,367 | ||||||
4.65%, 08/01/23 (Call 05/01/23)(a) | 100 | 105,142 | ||||||
Simon Property Group LP | ||||||||
3.25%, 11/30/26 (Call 08/30/26)(a) | 15,789 | 15,381,664 | ||||||
3.30%, 01/15/26 (Call 10/15/25)(a) | 19,482 | 19,140,621 | ||||||
3.38%, 10/01/24 (Call 07/01/24)(a) | 16,710 | 16,778,935 | ||||||
3.38%, 06/15/27 (Call 03/15/27) | 5,863 | 5,740,327 | ||||||
3.38%, 12/01/27 (Call 09/01/27) | 2,054 | 2,009,858 | ||||||
Welltower Inc., 4.00%, 06/01/25 (Call 03/01/25) | 12,501 | 12,605,528 |
Security | Par (000) | Value | ||||||
Real Estate Investment Trusts (continued) | ||||||||
Weyerhaeuser Co., 7.38%, 03/15/32 | $ | 19,559 | $ | 24,934,099 | ||||
|
| |||||||
415,835,306 | ||||||||
Retail — 3.5% | ||||||||
Costco Wholesale Corp. | ||||||||
2.30%, 05/18/22 (Call 04/18/22)(a) | 7,970 | 7,878,997 | ||||||
2.75%, 05/18/24 (Call 03/18/24) | 16,523 | 16,398,078 | ||||||
3.00%, 05/18/27 (Call 02/18/27)(a) | 14,200 | 13,859,437 | ||||||
Dollar General Corp., 3.25%, 04/15/23 (Call 01/15/23)(a) | 18,507 | 18,268,443 | ||||||
Dollar Tree Inc. | ||||||||
3.70%, 05/15/23 (Call 04/15/23)(a) | 7,506 | 7,439,221 | ||||||
4.00%, 05/15/25 (Call 03/15/25)(a) | 6,799 | 6,673,041 | ||||||
4.20%, 05/15/28 (Call 02/15/28)(a) | 23,782 | 22,569,199 | ||||||
Home Depot Inc. (The) | ||||||||
2.13%, 09/15/26 (Call 06/15/26)(a) | 13,815 | 12,710,944 | ||||||
2.63%, 06/01/22 (Call 05/01/22)(a) | 14,629 | 14,578,259 | ||||||
2.70%, 04/01/23 (Call 01/01/23)(a) | 12,955 | 12,925,295 | ||||||
2.80%, 09/14/27 (Call 06/14/27)(a) | 13,523 | 13,011,833 | ||||||
3.00%, 04/01/26 (Call 01/01/26)(a) | 12,100 | 11,867,766 | ||||||
3.35%, 09/15/25 (Call 06/15/25)(a) | 12,098 | 12,273,729 | ||||||
3.50%, 09/15/56 (Call 03/15/56)(a) | 4,601 | 4,014,283 | ||||||
3.75%, 02/15/24 (Call 11/15/23)(a) | 12,634 | 13,093,195 | ||||||
3.90%, 12/06/28 (Call 09/06/28) | 5,910 | 6,141,092 | ||||||
3.90%, 06/15/47 (Call 12/15/46)(a) | 6,529 | 6,304,252 | ||||||
4.20%, 04/01/43 (Call 10/01/42)(a) | 15,014 | 15,128,898 | ||||||
4.25%, 04/01/46 (Call 10/01/45)(a) | 16,661 | 16,952,596 | ||||||
4.40%, 03/15/45 (Call 09/15/44) | 14,541 | 15,039,130 | ||||||
4.50%, 12/06/48 (Call 06/06/48)(a) | 20,105 | 21,231,471 | ||||||
4.88%, 02/15/44 (Call 08/15/43)(a) | 14,675 | 16,138,652 | ||||||
5.88%, 12/16/36(a) | 31,204 | 37,872,713 | ||||||
5.95%, 04/01/41 (Call 10/01/40) | 13,951 | 17,292,029 | ||||||
Lowe’s Companies Inc. | ||||||||
2.50%, 04/15/26 (Call 01/15/26)(a) | 12,554 | 11,479,799 | ||||||
3.10%, 05/03/27 (Call 02/03/27)(a) | 20,526 | 19,363,551 | ||||||
3.12%, 04/15/22 (Call 01/15/22)(a) | 5,914 | 5,904,371 | ||||||
3.38%, 09/15/25 (Call 06/15/25) | 4,432 | 4,332,525 | ||||||
3.70%, 04/15/46 (Call 10/15/45)(a) | 14,678 | 12,399,826 | ||||||
4.05%, 05/03/47 (Call 11/03/46)(a) | 19,582 | 17,452,179 | ||||||
4.38%, 09/15/45 (Call 03/15/45)(a) | 12,131 | 11,294,017 | ||||||
4.65%, 04/15/42 (Call 10/15/41) | 14,276 | 13,880,115 | ||||||
Macy’s Retail Holdings Inc., 2.88%, 02/15/23 (Call 11/15/22)(a) | 13,068 | 12,170,623 | ||||||
McDonald’s Corp. | ||||||||
2.63%, 01/15/22(a) | 11,403 | 11,315,951 | ||||||
3.35%, 04/01/23 (Call 03/01/23)(a) | 10,964 | 11,049,663 | ||||||
3.50%, 03/01/27 (Call 12/01/26)(a) | 11,698 | 11,551,665 | ||||||
3.70%, 01/30/26 (Call 10/30/25)(a) | 20,019 | 20,166,182 | ||||||
3.80%, 04/01/28 (Call 01/01/28) | 15,068 | 15,035,217 | ||||||
4.45%, 03/01/47 (Call 09/01/46)(a) | 10,973 | 10,690,428 | ||||||
4.45%, 09/01/48 (Call 03/01/48)(a) | 8,655 | 8,417,849 | ||||||
4.70%, 12/09/35 (Call 06/09/35)(a) | 11,951 | 12,282,340 | ||||||
4.88%, 12/09/45 (Call 06/09/45)(a) | 23,086 | 23,756,584 | ||||||
6.30%, 10/15/37(a) | 12,982 | 15,480,113 | ||||||
6.30%, 03/01/38(a) | 5,913 | 7,072,121 | ||||||
O’Reilly Automotive Inc., 3.60%, 09/01/27 (Call 06/01/27) | 2,290 | 2,218,660 | ||||||
Starbucks Corp. | ||||||||
3.10%, 03/01/23 (Call 02/01/23)(a) | 6,728 | 6,712,450 | ||||||
3.50%, 03/01/28 (Call 12/01/27)(a) | 1,298 | 1,268,051 | ||||||
3.80%, 08/15/25 (Call 06/15/25)(a) | 16,956 | 17,184,569 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
3.85%, 10/01/23 (Call 07/01/23)(a) | $ | 5,875 | $ | 6,001,556 | ||||
4.00%, 11/15/28 (Call 08/15/28)(a) | 8,160 | 8,259,147 | ||||||
4.50%, 11/15/48 (Call 05/15/48)(a) | 15,505 | 14,944,744 | ||||||
Target Corp. | ||||||||
2.50%, 04/15/26(a) | 11,604 | 11,041,099 | ||||||
2.90%, 01/15/22(a) | 8,957 | 9,007,842 | ||||||
3.50%, 07/01/24(a) | 14,849 | 15,226,984 | ||||||
3.63%, 04/15/46 | 14,123 | 12,696,628 | ||||||
3.90%, 11/15/47 (Call 05/15/47)(a) | 10,081 | 9,486,894 | ||||||
4.00%, 07/01/42(a) | 16,356 | 15,841,368 | ||||||
TJX Companies Inc. (The), 2.25%, 09/15/26 | ||||||||
(Call 06/15/26)(a) | 13,797 | 12,737,308 | ||||||
Walgreen Co., 3.10%, 09/15/22(a) | 10,688 | 10,655,332 | ||||||
Walgreens Boots Alliance Inc. | ||||||||
3.30%, 11/18/21 (Call 09/18/21)(a) | 2,120 | 2,131,592 | ||||||
3.45%, 06/01/26 (Call 03/01/26)(a) | 29,957 | 28,678,624 | ||||||
3.80%, 11/18/24 (Call 08/18/24)(a) | 24,953 | 25,021,688 | ||||||
4.80%, 11/18/44 (Call 05/18/44)(a) | 16,463 | 15,355,496 | ||||||
Walmart Inc. | ||||||||
2.35%, 12/15/22 (Call 11/15/22) | 18,295 | 18,014,964 | ||||||
2.55%, 04/11/23 (Call 01/11/23)(a) | 25,693 | 25,433,249 | ||||||
2.65%, 12/15/24 (Call 10/15/24)(a) | 11,909 | 11,729,772 | ||||||
3.30%, 04/22/24 (Call 01/22/24)(a) | 29,517 | 30,018,795 | ||||||
3.40%, 06/26/23 (Call 05/26/23) | 38,899 | 39,652,466 | ||||||
3.55%, 06/26/25 (Call 04/26/25)(a) | 25,825 | 26,490,983 | ||||||
3.63%, 12/15/47 (Call 06/15/47)(a) | 17,585 | 16,449,929 | ||||||
3.70%, 06/26/28 (Call 03/26/28)(a) | 38,036 | 38,956,110 | ||||||
3.95%, 06/28/38 (Call 12/28/37) | 17,624 | 17,688,028 | ||||||
4.00%, 04/11/43 (Call 10/11/42)(a) | 1,327 | 1,318,741 | ||||||
4.05%, 06/29/48 (Call 12/29/47) | 36,030 | 36,332,407 | ||||||
4.30%, 04/22/44 (Call 10/22/43) | 1,851 | 1,924,074 | ||||||
5.25%, 09/01/35(a) | 25,186 | 29,324,183 | ||||||
5.63%, 04/01/40(a) | 3,311 | 4,005,946 | ||||||
5.63%, 04/15/41(a) | 5,583 | 6,784,173 | ||||||
5.88%, 04/05/27 | 1,302 | 1,529,199 | ||||||
6.20%, 04/15/38(a) | 2,614 | 3,307,768 | ||||||
|
| |||||||
1,128,188,491 | ||||||||
Semiconductors — 1.7% | ||||||||
Analog Devices Inc. | ||||||||
3.50%, 12/05/26 (Call 09/05/26)(a) | 13,622 | 13,106,966 | ||||||
3.90%, 12/15/25 (Call 09/15/25) | 11,750 | 11,743,494 | ||||||
Applied Materials Inc. | ||||||||
3.30%, 04/01/27 (Call 01/01/27)(a) | 18,969 | 18,727,690 | ||||||
4.35%, 04/01/47 (Call 10/01/46)(a) | 9,888 | 9,918,652 | ||||||
Broadcom Corp./Broadcom Cayman Finance Ltd. | ||||||||
2.65%, 01/15/23 (Call 12/15/22) | 9,246 | 8,805,138 | ||||||
3.00%, 01/15/22 (Call 12/15/21)(a) | 7,280 | 7,148,185 | ||||||
3.13%, 01/15/25 (Call 11/15/24) | 20,544 | 19,033,406 | ||||||
3.50%, 01/15/28 (Call 10/15/27)(a) | 17,309 | 15,422,701 | ||||||
3.63%, 01/15/24 (Call 11/15/23)(a) | 28,604 | 27,790,411 | ||||||
3.88%, 01/15/27 (Call 10/15/26) | 57,950 | 53,644,315 | ||||||
Intel Corp. | ||||||||
2.35%, 05/11/22 (Call 04/11/22)(a) | 10,506 | 10,363,780 | ||||||
2.60%, 05/19/26 (Call 02/19/26)(a) | 13,859 | 13,283,882 | ||||||
2.70%, 12/15/22(a) | 19,359 | 19,268,946 | ||||||
2.88%, 05/11/24 (Call 03/11/24)(a) | 12,861 | 12,727,923 | ||||||
3.10%, 07/29/22(a) | 12,122 | 12,247,025 | ||||||
3.15%, 05/11/27 (Call 02/11/27)(a) | 14,856 | 14,739,692 | ||||||
3.70%, 07/29/25 (Call 04/29/25)(a) | 28,233 | 29,061,972 | ||||||
3.73%, 12/08/47 (Call 06/08/47)(a) | 18,153 | 17,306,407 |
Security | Par (000) | Value | ||||||
Semiconductors (continued) | ||||||||
4.00%, 12/15/32(a) | $ | 18,230 | $ | 19,360,743 | ||||
4.10%, 05/19/46 (Call 11/19/45)(a) | 20,340 | 20,506,011 | ||||||
4.10%, 05/11/47 (Call 11/11/46)(a) | 22,089 | 22,195,559 | ||||||
4.80%, 10/01/41(a) | 2,215 | 2,454,890 | ||||||
4.90%, 07/29/45 (Call 01/29/45) | 1,840 | 2,081,310 | ||||||
NVIDIA Corp. | ||||||||
2.20%, 09/16/21 (Call 08/16/21)(a) | 2,226 | 2,182,080 | ||||||
3.20%, 09/16/26 (Call 06/16/26) | 13,784 | 13,391,859 | ||||||
QUALCOMM Inc. | ||||||||
2.60%, 01/30/23 (Call 12/30/22) | 13,701 | 13,355,409 | ||||||
2.90%, 05/20/24 (Call 03/20/24)(a) | 17,164 | 16,589,275 | ||||||
3.00%, 05/20/22(a) | 18,003 | 17,918,451 | ||||||
3.25%, 05/20/27 (Call 02/20/27)(a) | 20,253 | 19,129,406 | ||||||
3.45%, 05/20/25 (Call 02/20/25)(a) | 24,960 | 24,546,308 | ||||||
4.30%, 05/20/47 (Call 11/20/46) | 16,856 | 15,118,199 | ||||||
4.65%, 05/20/35 (Call 11/20/34)(a) | 18,156 | 17,724,759 | ||||||
4.80%, 05/20/45 (Call 11/20/44) | 21,978 | 21,133,555 | ||||||
Texas Instruments Inc., 4.15%, 05/15/48 (Call 11/15/47)(a) | 22,184 | 22,606,674 | ||||||
|
| |||||||
564,635,073 | ||||||||
Software — 3.8% | ||||||||
Fidelity National Information Services Inc. | ||||||||
2.25%, 08/15/21 (Call 07/15/21) | 76 | 73,846 | ||||||
3.00%, 08/15/26 (Call 05/15/26)(a) | 15,202 | 14,171,842 | ||||||
3.50%, 04/15/23 (Call 01/15/23)(a) | 2,024 | 2,011,057 | ||||||
5.00%, 10/15/25 (Call 07/15/25) | 11,525 | 12,131,842 | ||||||
Fiserv Inc. | ||||||||
3.80%, 10/01/23 (Call 09/01/23) | 2,286 | 2,295,652 | ||||||
3.85%, 06/01/25 (Call 03/01/25)(a) | 8,601 | 8,616,314 | ||||||
4.20%, 10/01/28 (Call 07/01/28) | 3,220 | 3,180,042 | ||||||
Microsoft Corp. | ||||||||
2.00%, 08/08/23 (Call 06/08/23)(a) | 30,189 | 29,214,493 | ||||||
2.13%, 11/15/22(a) | 5,979 | 5,881,091 | ||||||
2.38%, 02/12/22 (Call 01/12/22)(a) | 1,995 | 1,976,640 | ||||||
2.38%, 05/01/23 (Call 02/01/23)(a) | 13,375 | 13,206,732 | ||||||
2.40%, 08/08/26 (Call 05/08/26)(a) | 42,720 | 40,542,156 | ||||||
2.65%, 11/03/22 (Call 09/03/22)(a) | 9,768 | 9,751,123 | ||||||
2.70%, 02/12/25 (Call 11/12/24)(a) | 33,308 | 32,799,653 | ||||||
2.88%, 02/06/24 (Call 12/06/23)(a) | 33,602 | 33,592,343 | ||||||
3.13%, 11/03/25 (Call 08/03/25)(a) | 20,532 | 20,652,285 | ||||||
3.30%, 02/06/27 (Call 11/06/26)(a) | 37,026 | 37,241,162 | ||||||
3.45%, 08/08/36 (Call 02/08/36) | 19,870 | 19,284,222 | ||||||
3.50%, 02/12/35 (Call 08/12/34) | 11,230 | 10,981,368 | ||||||
3.50%, 11/15/42(a) | 7,034 | 6,643,543 | ||||||
3.63%, 12/15/23 (Call 09/15/23)(a) | 24,919 | 25,836,777 | ||||||
3.70%, 08/08/46 (Call 02/08/46)(a) | 52,657 | 51,372,869 | ||||||
3.75%, 02/12/45 (Call 08/12/44)(a) | 23,875 | 23,400,243 | ||||||
3.95%, 08/08/56 (Call 02/08/56)(a) | 36,000 | 35,370,277 | ||||||
4.00%, 02/12/55 (Call 08/12/54) | 19,594 | 19,455,063 | ||||||
4.10%, 02/06/37 (Call 08/06/36) | 27,813 | 29,051,502 | ||||||
4.20%, 11/03/35 (Call 05/03/35)(a) | 19,661 | 20,780,466 | ||||||
4.45%, 11/03/45 (Call 05/03/45)(a) | 38,118 | 41,491,710 | ||||||
4.50%, 10/01/40(a) | 17,751 | 19,302,207 | ||||||
4.50%, 02/06/57 (Call 08/06/56) | 29,925 | 32,610,613 | ||||||
4.75%, 11/03/55 (Call 05/03/55)(a) | 8,513 | 9,596,836 | ||||||
5.20%, 06/01/39 | 4,554 | 5,386,135 | ||||||
5.30%, 02/08/41 | 14,849 | 17,754,177 | ||||||
Series 30Y, 4.25%, 02/06/47 (Call 08/06/46)(a) | 31,501 | 33,273,379 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Software (continued) | ||||||||
Oracle Corp. | ||||||||
1.90%, 09/15/21 (Call 08/15/21)(a) | $ | 1,478 | $ | 1,445,146 | ||||
2.40%, 09/15/23 (Call 07/15/23)(a) | 25,163 | 24,449,727 | ||||||
2.50%, 05/15/22 (Call 03/15/22)(a) | 26,187 | 25,868,008 | ||||||
2.50%, 10/15/22 | 25,170 | 24,834,363 | ||||||
2.63%, 02/15/23 (Call 01/15/23) | 19,160 | 18,893,983 | ||||||
2.65%, 07/15/26 (Call 04/15/26) | 40,442 | 38,408,875 | ||||||
2.95%, 11/15/24 (Call 09/15/24)(a) | 29,752 | 29,421,982 | ||||||
2.95%, 05/15/25 (Call 02/15/25)(a) | 27,849 | 27,357,913 | ||||||
3.25%, 11/15/27 (Call 08/15/27)(a) | 47,301 | 46,552,528 | ||||||
3.40%, 07/08/24 (Call 04/08/24)(a) | 31,315 | 31,673,929 | ||||||
3.63%, 07/15/23(a) | 14,208 | 14,563,379 | ||||||
3.80%, 11/15/37 (Call 05/15/37)(a) | 20,334 | 19,491,237 | ||||||
3.85%, 07/15/36 (Call 01/15/36)(a) | 20,745 | 20,080,268 | ||||||
3.90%, 05/15/35 (Call 11/15/34)(a) | 13,184 | 12,907,564 | ||||||
4.00%, 07/15/46 (Call 01/15/46) | 50,065 | 47,873,069 | ||||||
4.00%, 11/15/47 (Call 05/15/47)(a) | 24,871 | 23,798,926 | ||||||
4.13%, 05/15/45 (Call 11/15/44)(a) | 27,361 | 26,717,518 | ||||||
4.30%, 07/08/34 (Call 01/08/34)(a) | 12,209 | 12,688,483 | ||||||
4.38%, 05/15/55 (Call 11/15/54) | 4,039 | 4,021,457 | ||||||
4.50%, 07/08/44 (Call 01/08/44)(a) | 11,350 | 11,726,329 | ||||||
5.38%, 07/15/40(a) | 26,939 | 30,934,905 | ||||||
6.13%, 07/08/39(a) | 6,766 | 8,374,545 | ||||||
6.50%, 04/15/38(a) | 11,977 | 15,313,277 | ||||||
salesforce.com Inc. | ||||||||
3.25%, 04/11/23 (Call 03/11/23) | 9,782 | 9,891,502 | ||||||
3.70%, 04/11/28 (Call 01/11/28)(a) | 17,920 | 18,361,000 | ||||||
VMware Inc. | ||||||||
2.95%, 08/21/22 (Call 07/21/22) | 9,389 | 9,193,666 | ||||||
3.90%, 08/21/27 (Call 05/21/27) | 25,142 | 23,460,739 | ||||||
|
| |||||||
1,247,233,978 | ||||||||
Telecommunications — 6.8% | ||||||||
AT&T Inc. | ||||||||
2.63%, 12/01/22 (Call 09/01/22)(a) | 10,039 | 9,803,009 | ||||||
3.00%, 02/15/22(a) | 16,911 | 16,829,565 | ||||||
3.00%, 06/30/22 (Call 04/30/22) | 10,370 | 10,278,409 | ||||||
3.20%, 03/01/22 (Call 02/01/22) | 12,036 | 12,030,309 | ||||||
3.40%, 05/15/25 (Call 02/15/25)(a) | 61,977 | 60,401,638 | ||||||
3.60%, 02/17/23 (Call 12/17/22)(a) | 20,955 | 21,091,040 | ||||||
3.80%, 03/15/22(a) | 12,188 | 12,385,146 | ||||||
3.80%, 03/01/24 (Call 01/01/24)(a) | 14,766 | 14,893,273 | ||||||
3.90%, 03/11/24 (Call 12/11/23)(a) | 8,931 | 9,047,753 | ||||||
3.95%, 01/15/25 (Call 10/15/24) | 19,401 | 19,464,362 | ||||||
4.10%, 02/15/28 (Call 11/15/27) | 26,534 | 26,148,774 | ||||||
4.13%, 02/17/26 (Call 11/17/25)(a) | 29,907 | 29,944,518 | ||||||
4.25%, 03/01/27 (Call 12/01/26)(a) | 32,686 | 32,836,990 | ||||||
4.30%, 02/15/30 (Call 11/15/29) | 35,792 | 35,126,806 | ||||||
4.30%, 12/15/42 (Call 06/15/42)(a) | 28,291 | 24,792,156 | ||||||
4.35%, 03/01/29 (Call 12/01/28) | 21,829 | 21,683,922 | ||||||
4.35%, 06/15/45 (Call 12/15/44)(a) | 30,948 | 26,930,860 | ||||||
4.45%, 04/01/24 (Call 01/01/24) | 19,497 | 20,192,932 | ||||||
4.50%, 05/15/35 (Call 11/15/34)(a) | 39,975 | 37,628,883 | ||||||
4.50%, 03/09/48 (Call 09/09/47)(a) | 60,884 | 54,346,751 | ||||||
4.55%, 03/09/49 (Call 09/09/48)(a) | 30,680 | 27,428,945 | ||||||
4.75%, 05/15/46 (Call 11/15/45)(a) | 36,741 | 34,108,302 | ||||||
4.80%, 06/15/44 (Call 12/15/43)(a) | 33,425 | 31,381,609 | ||||||
4.85%, 03/01/39 (Call 09/01/38) | 24,807 | 23,669,150 | ||||||
4.90%, 08/15/37 (Call 02/14/37) | 10,306 | 9,981,625 | ||||||
5.15%, 03/15/42(a) | 15,544 | 15,261,357 | ||||||
5.15%, 11/15/46 (Call 05/15/46)(a) | 28,231 | 27,537,288 |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
5.15%, 02/15/50 (Call 08/14/49)(a) | $ | 25,146 | $ | 24,290,395 | ||||
5.25%, 03/01/37 (Call 09/01/36) | 29,228 | 29,430,179 | ||||||
5.35%, 09/01/40(a) | 20,032 | 20,077,443 | ||||||
5.45%, 03/01/47 (Call 09/01/46)(a) | 20,474 | 20,852,077 | ||||||
5.55%, 08/15/41 | 4,812 | 4,925,384 | ||||||
5.65%, 02/15/47 (Call 08/15/46)(a) | 18,973 | 19,779,749 | ||||||
5.70%, 03/01/57 (Call 09/01/56) | 14,658 | 14,889,853 | ||||||
6.00%, 08/15/40 (Call 05/15/40)(a) | 17,367 | 18,692,882 | ||||||
6.30%, 01/15/38(a) | 252 | 280,577 | ||||||
6.38%, 03/01/41(a) | 4,022 | 4,547,568 | ||||||
British Telecommunications PLC, 9.63%, 12/15/30 | 24,414 | 34,113,411 | ||||||
Cisco Systems Inc. | ||||||||
2.20%, 09/20/23 (Call 07/20/23)(a) | 22,128 | 21,563,926 | ||||||
2.50%, 09/20/26 (Call 06/20/26)(a) | 9,597 | 9,121,301 | ||||||
2.95%, 02/28/26(a) | 13,234 | 13,005,323 | ||||||
3.63%, 03/04/24(a) | 20,664 | 21,399,665 | ||||||
5.50%, 01/15/40(a) | 19,635 | 24,009,236 | ||||||
5.90%, 02/15/39(a) | 18,093 | 23,104,300 | ||||||
Deutsche Telekom International Finance BV, 8.75%, 06/15/30 | 45,411 | 60,549,542 | ||||||
Motorola Solutions Inc., 3.75%, 05/15/22 | 1,732 | 1,737,014 | ||||||
Orange SA | ||||||||
4.13%, 09/14/21(a) | 3,685 | 3,802,532 | ||||||
5.38%, 01/13/42(a) | 7,875 | 8,527,190 | ||||||
5.50%, 02/06/44 (Call 08/06/43)(a) | 7,334 | 8,034,144 | ||||||
9.00%, 03/01/31(a) | 31,775 | 44,573,376 | ||||||
Rogers Communications Inc. | ||||||||
4.10%, 10/01/23 (Call 07/01/23)(a) | 15,343 | 15,891,848 | ||||||
4.30%, 02/15/48 (Call 08/15/47)(a) | 5,559 | 5,382,907 | ||||||
5.00%, 03/15/44 (Call 09/15/43)(a) | 11,219 | 11,874,523 | ||||||
Telefonica Emisiones SAU | ||||||||
4.10%, 03/08/27(a) | 16,015 | 15,753,030 | ||||||
4.57%, 04/27/23(a) | 7,082 | 7,368,638 | ||||||
4.67%, 03/06/38(a) | 14,357 | 13,225,387 | ||||||
4.90%, 03/06/48(a) | 15,956 | 14,707,106 | ||||||
5.21%, 03/08/47 | 29,183 | 27,986,870 | ||||||
5.52%, 03/01/49 (Call 09/01/48) | 5,000 | 4,987,500 | ||||||
7.05%, 06/20/36(a) | 20,053 | 23,534,901 | ||||||
Telefonica Europe BV, 8.25%, 09/15/30(a) | 8,971 | 11,590,209 | ||||||
Verizon Communications Inc. | ||||||||
2.63%, 08/15/26(a) | 38,450 | 35,915,138 | ||||||
3.38%, 02/15/25 | 29,092 | 29,091,395 | ||||||
3.50%, 11/01/24 (Call 08/01/24) | 21,360 | 21,566,970 | ||||||
3.85%, 11/01/42 (Call 05/01/42)(a) | 8,556 | 7,694,341 | ||||||
3.88%, 02/08/29 (Call 11/08/28)(a) | 3,025 | 3,023,719 | ||||||
4.02%, 12/03/29(b) | 46,170 | 46,311,280 | ||||||
4.13%, 03/16/27(a) | 43,670 | 44,662,440 | ||||||
4.13%, 08/15/46 | 15,764 | 14,556,487 | ||||||
4.27%, 01/15/36(a) | 35,266 | 34,492,112 | ||||||
4.33%, 09/21/28(a) | 139,186 | 143,932,799 | ||||||
4.40%, 11/01/34 (Call 05/01/34)(a) | 17,204 | 17,271,810 | ||||||
4.50%, 08/10/33(a) | 34,460 | 35,217,279 | ||||||
4.52%, 09/15/48(a) | 52,703 | 51,486,820 | ||||||
4.67%, 03/15/55 | 52,018 | 50,480,785 | ||||||
4.75%, 11/01/41 | 8,257 | 8,371,835 | ||||||
4.81%, 03/15/39(a) | 13,119 | 13,466,076 | ||||||
4.86%, 08/21/46(a) | 59,250 | 60,886,645 | ||||||
5.01%, 04/15/49 | 43,368 | 45,559,745 | ||||||
5.01%, 08/21/54(a) | 49,496 | 50,622,811 | ||||||
5.15%, 09/15/23 | 3,692 | 4,007,923 |
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
5.25%, 03/16/37(a) | $ | 25,154 | $ | 27,362,174 | ||||
5.50%, 03/16/47(a) | 12,623 | 14,102,373 | ||||||
6.55%, 09/15/43(a) | 7,751 | 9,555,797 | ||||||
Vodafone Group PLC | ||||||||
2.50%, 09/26/22(a) | 7,302 | 7,080,073 | ||||||
2.95%, 02/19/23(a) | 20,648 | 20,183,905 | ||||||
3.75%, 01/16/24(a) | 23,804 | 23,729,622 | ||||||
4.13%, 05/30/25(a) | 20,783 | 20,868,547 | ||||||
4.38%, 05/30/28(a) | 34,450 | 34,074,002 | ||||||
4.38%, 02/19/43(a) | 15,473 | 13,251,577 | ||||||
5.00%, 05/30/38(a) | 13,286 | 12,666,556 | ||||||
5.25%, 05/30/48(a) | 34,754 | 33,187,220 | ||||||
6.15%, 02/27/37(a) | 25,786 | 27,640,975 | ||||||
|
| |||||||
2,211,156,589 | ||||||||
Transportation — 1.3% | ||||||||
Burlington Northern Santa Fe LLC | ||||||||
3.85%, 09/01/23 (Call 06/01/23)(a) | 3,783 | 3,913,995 | ||||||
3.90%, 08/01/46 (Call 02/01/46)(a) | 13,749 | 13,259,776 | ||||||
4.05%, 06/15/48 (Call 12/15/47) | 5,986 | 5,878,017 | ||||||
4.13%, 06/15/47 (Call 12/15/46)(a) | 7,686 | 7,660,276 | ||||||
4.15%, 04/01/45 (Call 10/01/44)(a) | 12,764 | 12,799,673 | ||||||
4.15%, 12/15/48 (Call 06/15/48)(a) | 13,234 | 13,313,851 | ||||||
4.45%, 03/15/43 (Call 09/15/42) | 12,898 | 13,407,063 | ||||||
4.55%, 09/01/44 (Call 03/01/44)(a) | 12,749 | 13,369,718 | ||||||
4.90%, 04/01/44 (Call 10/01/43)(a) | 5,101 | 5,612,576 | ||||||
5.75%, 05/01/40 (Call 11/01/39)(a) | 11,719 | 14,089,456 | ||||||
Cie. de Chemin de Fer Canadien Pacifique, 6.13%, 09/15/15 (Call 03/15/15)(a) | 3,756 | 4,360,565 | ||||||
CSX Corp. | ||||||||
2.60%, 11/01/26 (Call 08/01/26)(a) | 439 | 405,515 | ||||||
3.25%, 06/01/27 (Call 03/01/27)(a) | 18,172 | 17,486,436 | ||||||
3.80%, 03/01/28 (Call 12/01/27)(a) | 4,636 | 4,616,765 | ||||||
3.80%, 11/01/46 (Call 05/01/46)(a) | 3,790 | 3,392,899 | ||||||
4.10%, 03/15/44 (Call 09/15/43) | 12,696 | 11,937,571 | ||||||
4.25%, 03/15/29 (Call 12/15/28) | 5,000 | 5,145,300 | ||||||
4.30%, 03/01/48 (Call 09/01/47)(a) | 10,839 | 10,467,919 | ||||||
FedEx Corp. | ||||||||
3.25%, 04/01/26 (Call 01/01/26)(a) | 10,009 | 9,718,173 | ||||||
4.00%, 01/15/24(a) | 5,988 | 6,164,782 | ||||||
4.05%, 02/15/48 (Call 08/15/47) | 23,545 | 20,419,552 | ||||||
4.40%, 01/15/47 (Call 07/15/46)(a) | 10,646 | 9,683,103 | ||||||
4.55%, 04/01/46 (Call 10/01/45) | 13,578 | 12,687,560 | ||||||
4.75%, 11/15/45 (Call 05/15/45)(a) | 18,660 | 17,958,259 | ||||||
4.95%, 10/17/48 (Call 04/17/48)(a) | 1,763 | 1,744,884 | ||||||
5.10%, 01/15/44(a) | 10,754 | 10,842,262 | ||||||
Union Pacific Corp. | ||||||||
3.70%, 03/01/29 (Call 12/01/28)(a) | 7,175 | 7,139,208 | ||||||
3.80%, 10/01/51 (Call 04/01/51)(a) | 10,120 | 8,927,607 | ||||||
3.95%, 09/10/28 (Call 06/10/28)(a) | 30,569 | 31,232,390 | ||||||
4.16%, 07/15/22 (Call 04/15/22)(a) | 6,939 | 7,182,306 | ||||||
4.30%, 03/01/49 (Call 09/01/48)(a) | 5,025 | 4,903,415 | ||||||
4.38%, 09/10/38 (Call 03/10/38) | 12,648 | 12,608,045 | ||||||
4.50%, 09/10/48 (Call 03/10/48) | 11,784 | 11,852,695 |
Security | Par/ Shares (000) | Value | ||||||
Transportation (continued) | ||||||||
United Parcel Service Inc. | ||||||||
2.45%, 10/01/22 | $ | 5,181 | $ | 5,136,032 | ||||
2.50%, 04/01/23 (Call 03/01/23) | 16,386 | 16,111,340 | ||||||
3.05%, 11/15/27 (Call 08/15/27)(a) | 14,497 | 14,139,729 | ||||||
3.75%, 11/15/47 (Call 05/15/47)(a) | 11,264 | 10,388,800 | ||||||
6.20%, 01/15/38 | 21,940 | 27,248,763 | ||||||
|
| |||||||
407,206,276 | ||||||||
Water — 0.1% | ||||||||
American Water Capital Corp. | ||||||||
3.75%, 09/01/47 (Call 03/01/47)(a) | 21,031 | 19,396,349 | ||||||
6.59%, 10/15/37(a) | 1,912 | 2,438,005 | ||||||
|
| |||||||
21,834,354 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 98.8% |
| 32,138,442,972 | ||||||
|
| |||||||
U.S. Government Obligations |
| |||||||
U.S. Government Obligations — 0.0% | ||||||||
U.S. Treasury Note/Bond, | 10,000 | 9,830,402 | ||||||
|
| |||||||
Total U.S. Government Obligations — 0.0% |
| 9,830,402 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 10.0% | ||||||||
BlackRock Cash Funds: Institutional, | 3,058,759 | 3,059,982,217 | ||||||
BlackRock Cash Funds: Treasury, | 188,176 | 188,176,431 | ||||||
|
| |||||||
3,248,158,648 | ||||||||
|
| |||||||
Total Short-Term Investments — 10.0% |
| 3,248,158,648 | ||||||
|
| |||||||
Total Investments in Securities — 108.8% |
| 35,396,432,022 | ||||||
Other Assets, Less Liabilities — (8.8)% |
| (2,876,458,632 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 32,519,973,390 | ||||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. Reference index and spread are provided if the rate is currently floating. |
(d) | Variable or floating rate security. Rate shown is the rate in effect as of period-end. |
(e) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(f) | Affiliate of the Fund. |
(g) | Annualized 7-day yield as of period-end. |
(h) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF
|
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Par/Shares Held at 02/28/18 (000) |
| | Par/Shares Purchased (000) |
| | Par/Shares Sold (000) |
| | Par/Shares Held at 02/28/19 (000) |
| | Value at 02/28/19 |
| Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 3,425,888 | — | (367,129 | )(b) | 3,058,759 | $ | 3,059,982,217 | $ | 10,038,489 | (c) | $ | 76,445 | $ | 951,048 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 107,658 | 80,518 | (b) | — | 188,176 | 188,176,431 | 2,796,541 | — | — | |||||||||||||||||||||||
PNC Bank N.A. | ||||||||||||||||||||||||||||||||
2.15%, 04/29/21(d) | 14,331 | — | (14,331 | ) | — | N/A | 93,367 | (478,239 | ) | 474,968 | ||||||||||||||||||||||
2.45%, 07/28/22(d) | 1,367 | — | — | 1,367 | N/A | 33,014 | — | 43,371 | ||||||||||||||||||||||||
2.55%, 12/09/21(d) | 11,815 | — | (4,553 | ) | 7,262 | N/A | 193,894 | (98,087 | ) | 244,650 | ||||||||||||||||||||||
2.63%, 02/17/22(d) | 17,722 | 10,000 | (7,575 | ) | 20,147 | N/A | 533,701 | (65,197 | ) | 455,641 | ||||||||||||||||||||||
2.70%, 11/01/22(d) | 21,889 | 1,000 | (15,070 | ) | 7,819 | N/A | 257,699 | (491,212 | ) | 669,663 | ||||||||||||||||||||||
2.95%, 01/30/23(d) | 11,926 | — | (9,653 | ) | 2,273 | N/A | 103,301 | (300,507 | ) | 295,856 | ||||||||||||||||||||||
2.95%, 02/23/25(d) | 13,200 | — | (5,463 | ) | 7,737 | N/A | 230,340 | (186,807 | ) | 535,782 | ||||||||||||||||||||||
3.10%, 10/25/27(d) | 2,938 | 25,000 | (4,151 | ) | 23,787 | N/A | 628,688 | 35,836 | 113,138 | |||||||||||||||||||||||
3.25%, 06/01/25(d) | 18,440 | — | (1,007 | ) | 17,433 | N/A | 531,423 | (36,057 | ) | 781,877 | ||||||||||||||||||||||
3.50%, 06/08/23(d) | — | 13,245 | — | 13,245 | N/A | 177,771 | — | — | ||||||||||||||||||||||||
3.80%, 07/25/23(d) | 12,012 | — | (4,553 | ) | 7,459 | N/A | 232,665 | (122,905 | ) | 339,329 | ||||||||||||||||||||||
4.05%, 07/26/28(d) | — | 17,580 | (900 | ) | 16,680 | N/A | 301,925 | 2,145 | — | |||||||||||||||||||||||
PNC Financial Services Group Inc. (The) | ||||||||||||||||||||||||||||||||
3.15%, 05/19/27(d) | 3,494 | 1,080 | (1,491 | ) | 3,083 | N/A | 99,778 | (73,497 | ) | 158,115 | ||||||||||||||||||||||
3.30%, 03/08/22(d) | 10,630 | — | (4 | ) | 10,626 | N/A | 279,868 | (96 | ) | 237,612 | ||||||||||||||||||||||
3.90%, 04/29/24(d) | 7,596 | — | (4,551 | ) | 3,045 | N/A | 114,709 | (67,461 | ) | 114,913 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 3,248,158,648 | $ | 16,647,173 | $ | (1,805,639 | ) | $ | 5,415,963 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
(d) | As of year end, the entity is no longer an affiliate of the Fund. |
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Interest Rate Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (586,890 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — short | $ | 0 | (a) |
(a) | Derivative not held at quarter-end. The amounts shown in the Statement of Operations serve as an indicator of volume activity during the year. |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
SCHEDULES OF INVESTMENTS |
Schedule of Investments (continued) February 28, 2019 | iShares® iBoxx $ Investment Grade Corporate Bond ETF
|
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 32,138,442,972 | $ | — | $ | 32,138,442,972 | ||||||||
U.S. Government Obligations | — | 9,830,402 | — | 9,830,402 | ||||||||||||
Money Market Funds | 3,248,158,648 | — | — | 3,248,158,648 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 3,248,158,648 | $ | 32,148,273,374 | $ | — | $ | 35,396,432,022 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statements of Assets and Liabilities
February 28, 2019
iShares iBoxx $ High Yield Corporate Bond ETF | iShares iBoxx $ Investment Grade Corporate Bond ETF | |||||||
| ||||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||
Unaffiliated(b) | $ | 15,070,194,894 | $ | 32,148,273,374 | ||||
Affiliated(c) | 3,737,368,907 | 3,248,158,648 | ||||||
Cash | 1,333,268 | 453,386 | ||||||
Receivables: | ||||||||
Investments sold | 58,727,901 | 74,417,514 | ||||||
Securities lending income — Affiliated | 1,439,866 | 742,686 | ||||||
Capital shares sold | 22,468,899 | 8,975,380 | ||||||
Dividends | 371,240 | 369,074 | ||||||
Interest | 248,854,962 | 343,432,761 | ||||||
|
|
|
| |||||
Total assets | 19,140,759,937 | 35,824,822,823 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Collateral on securities loaned, at value | 3,540,434,454 | 3,058,681,844 | ||||||
Payables: | ||||||||
Investments purchased | 214,391,017 | 241,138,727 | ||||||
Capital shares redeemed | 38,394,496 | 1,480,204 | ||||||
Investment advisory fees | 5,676,000 | 3,548,658 | ||||||
|
|
|
| |||||
Total liabilities | 3,798,895,967 | 3,304,849,433 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 15,341,863,970 | $ | 32,519,973,390 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 16,660,112,419 | $ | 33,567,996,064 | ||||
Accumulated loss | (1,318,248,449 | ) | (1,048,022,674 | ) | ||||
|
|
|
| |||||
NET ASSETS | $ | 15,341,863,970 | $ | 32,519,973,390 | ||||
|
|
|
| |||||
Shares outstanding | 179,000,000 | 280,600,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 85.71 | $ | 115.89 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Securities loaned, at value | $ | 3,364,927,722 | $ | 2,943,916,981 | ||||
(b) Investments, at cost — Unaffiliated | $ | 15,567,053,774 | $ | 33,050,745,077 | ||||
(c) Investments, at cost — Affiliated | $ | 3,736,186,466 | $ | 3,247,032,129 |
See notes to financial statements.
FINANCIAL STATEMENTS |
Statements of Operations
Year Ended February 28, 2019
iShares iBoxx $ High Yield Corporate Bond ETF | iShares iBoxx $ Investment Grade Corporate Bond ETF | |||||||
| ||||||||
INVESTMENT INCOME | ||||||||
Dividends — Affiliated | $ | 3,318,650 | $ | 2,796,541 | ||||
Interest — Unaffiliated | 824,067,747 | 1,199,381,118 | ||||||
Interest — Affiliated | — | 3,812,143 | ||||||
Securities lending income — Affiliated — net | 22,007,060 | 10,038,489 | ||||||
Other income — Unaffiliated | 2,391,220 | 3,043 | ||||||
|
|
|
| |||||
Total investment income | 851,784,677 | 1,216,031,334 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory fees | 72,959,257 | 46,920,280 | ||||||
|
|
|
| |||||
Total expenses | 72,959,257 | 46,920,280 | ||||||
|
|
|
| |||||
Net investment income | 778,825,420 | 1,169,111,054 | ||||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated | (90,216,076 | ) | (157,853,814 | ) | ||||
Investments — Affiliated | 198,538 | (213,376 | ) | |||||
In-kind redemptions — Unaffiliated | (83,560,666 | ) | (450,062,071 | ) | ||||
In-kind redemptions — Affiliated | — | (1,592,263 | ) | |||||
Futures contracts | — | (586,890 | ) | |||||
Foreign currency transactions | (36,287 | ) | — | |||||
|
|
|
| |||||
Net realized loss | (173,614,491 | ) | (610,308,414 | ) | ||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated | 137,161,188 | 221,608,433 | ||||||
Investments — Affiliated | 837,192 | 5,415,963 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | 137,998,380 | 227,024,396 | ||||||
|
|
|
| |||||
Net realized and unrealized loss | (35,616,111 | ) | (383,284,018 | ) | ||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 743,209,309 | $ | 785,827,036 | ||||
|
|
|
|
See notes to financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets
iShares iBoxx $ High Yield Corporate Bond ETF | iShares iBoxx $ Investment Grade Corporate Bond ETF | |||||||||||||||||||||||||||
Year Ended 02/28/19 | Year Ended 02/28/18 | Year Ended 02/28/19 | Year Ended 02/28/18 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net investment income | $ | 778,825,420 | $ | 917,067,469 | $ | 1,169,111,054 | $ | 1,156,409,466 | ||||||||||||||||||||
Net realized gain (loss) | (173,614,491 | ) | 211,898,895 | (610,308,414 | ) | 273,864,055 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 137,998,380 | (572,278,455 | ) | 227,024,396 | (753,064,134 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase in net assets resulting from operations | 743,209,309 | 556,687,909 | 785,827,036 | 677,209,387 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a)(b) | ||||||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (786,516,158 | ) | (936,329,183 | ) | (1,173,825,530 | ) | (1,129,426,920 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 113,715,886 | (2,943,402,425 | ) | 245,691,487 | 1,876,304,924 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
NET ASSETS(b) | ||||||||||||||||||||||||||||
Total increase (decrease) in net assets | 70,409,037 | (3,323,043,699 | ) | (142,307,007 | ) | 1,424,087,391 | ||||||||||||||||||||||
Beginning of year | 15,271,454,933 | 18,594,498,632 | 32,662,280,397 | 31,238,193,006 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
End of year | $ | 15,341,863,970 | $ | 15,271,454,933 | $ | 32,519,973,390 | $ | 32,662,280,397 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
FINANCIAL STATEMENTS |
Financial Highlights
(For a share outstanding throughout each period)
iShares iBoxx $ High Yield Corporate Bond ETF | ||||||||||||||||||||
Year Ended 02/28/19 | Year Ended 02/28/18 | Year Ended 02/28/17 | Year Ended 02/29/16 | Year Ended 02/28/15 | ||||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of year | $ | 86.13 | $ | 88.08 | $ | 79.10 | $ | 91.71 | $ | 94.64 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 4.46 | 4.42 | 4.64 | 4.79 | 4.96 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.36 | ) | (1.92 | ) | 8.89 | (12.62 | ) | (2.89 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 4.10 | 2.50 | 13.53 | (7.83 | ) | 2.07 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (4.52 | ) | (4.45 | ) | (4.55 | ) | (4.78 | ) | (5.00 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (4.52 | ) | (4.45 | ) | (4.55 | ) | (4.78 | ) | (5.00 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 85.71 | $ | 86.13 | $ | 88.08 | $ | 79.10 | $ | 91.71 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 4.95 | % | 2.87 | % | 17.54 | % | (8.76 | )% | 2.22 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.49 | % | 0.49 | % | 0.49 | % | 0.50 | % | 0.50 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 5.25 | % | 5.05 | % | 5.46 | % | 5.60 | % | 5.37 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 15,341,864 | $ | 15,271,455 | $ | 18,594,499 | $ | 15,543,922 | $ | 18,021,179 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(d) | 14 | % | 17 | % | 13 | % | 11 | % | 11 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBoxx $ Investment Grade Corporate Bond ETF | ||||||||||||||||||||
Year Ended 02/28/19 | Year Ended 02/28/18 | Year Ended 02/28/17 | Year Ended 02/29/16 | Year Ended 02/28/15 | ||||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of year | $ | 117.11 | $ | 118.42 | $ | 114.80 | $ | 121.46 | $ | 117.02 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 4.15 | 3.86 | 3.88 | 4.00 | 4.06 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.20 | ) | (1.39 | ) | 3.63 | (6.70 | ) | 4.42 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 2.95 | 2.47 | 7.51 | (2.70 | ) | 8.48 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (4.17 | ) | (3.78 | ) | (3.89 | ) | (3.96 | ) | (4.04 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (4.17 | ) | (3.78 | ) | (3.89 | ) | (3.96 | ) | (4.04 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 115.89 | $ | 117.11 | $ | 118.42 | $ | 114.80 | $ | 121.46 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 2.64 | % | 2.06 | % | 6.57 | % | (2.19 | )% | 7.35 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.15 | % | 0.15 | % | 0.15 | % | 0.15 | % | 0.15 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 3.62 | % | 3.22 | % | 3.24 | % | 3.44 | % | 3.42 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 32,519,973 | $ | 32,662,280 | $ | 31,238,193 | $ | 25,071,298 | $ | 22,044,157 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(d) | 10 | % | 10 | % | 11 | % | 13 | % | 9 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS |
Notes to Financial Statements
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
iBoxx $ High Yield Corporate Bond | Diversified | |||
iBoxx $ Investment Grade Corporate Bond | Diversified |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment-in-kind interest income, if any, are recognized daily on the accrual basis. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source.
Foreign Currency Translation:The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes:The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Recent Accounting Standards:In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization on Purchase Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Funds.
In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Fixed-income investments are valued using the last available bid price or current market quotations provided by independent dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund
NOTESTO FINANCIAL STATEMENTS |
Notes to Financial Statements (continued)
or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received |
| Net Amount | ||||||
| ||||||||||||||||
iBoxx $ High Yield Corporate Bond | ||||||||||||||||
Barclays Bank PLC | $ | 88,245,173 | $ | 88,245,173 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 530,671,514 | 530,671,514 | — | — | ||||||||||||
BMO Capital Markets | 28,626,541 | 28,626,541 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 111,037,252 | 111,037,252 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 290,377,798 | 290,377,798 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 94,911,105 | 94,911,105 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 108,691,504 | 108,691,504 | — | — | ||||||||||||
Goldman Sachs & Co. | 685,739,667 | 685,739,667 | — | — | ||||||||||||
HSBC Securities (USA) Inc. | 32,427,463 | 32,427,463 | — | — | ||||||||||||
Jefferies LLC | 8,858,806 | 8,858,806 | — | — | ||||||||||||
JPMorgan Securities LLC | 625,312,564 | 625,312,564 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 73,245,465 | 73,245,465 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 42,626,256 | 42,626,256 | — | — | ||||||||||||
MUFG Securities Americas Inc. | 8,024 | 8,024 | — | — | ||||||||||||
Nomura Securities International Inc. | 22,987,090 | 22,987,090 | — | — | ||||||||||||
RBC Capital Markets LLC | 391,360,621 | 391,360,621 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 290,175 | 290,175 | — | — | ||||||||||||
State Street Bank & Trust Company | 6,117,672 | 6,117,672 | — | — | ||||||||||||
UBS AG | 18,368,718 | 18,368,718 | — | — | ||||||||||||
UBS Securities LLC | 4,492,617 | 4,492,617 | — | — | ||||||||||||
Wells Fargo Securities LLC | 200,531,697 | 200,531,697 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 3,364,927,722 | $ | 3,364,927,722 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received |
| Net Amount | ||||||
| ||||||||||||||||
iBoxx $ Investment Grade Corporate Bond | ||||||||||||||||
Barclays Bank PLC | $ | 160,054,312 | $ | 160,054,312 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 99,231,838 | 99,231,838 | — | — | ||||||||||||
BMO Capital Markets | 38,515,471 | 38,515,471 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 64,204,147 | 64,204,147 | — | — | ||||||||||||
BNP Paribas Securities Corp. | 199,136 | 199,136 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 159,289,312 | 159,289,312 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 134,786,585 | 134,786,585 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 65,096,633 | 65,096,633 | — | — | ||||||||||||
Goldman Sachs & Co. | 277,248,578 | 277,248,578 | — | — | ||||||||||||
HSBC Securities (USA) Inc. | 161,259,528 | 161,259,528 | — | — | ||||||||||||
Jefferies LLC | 13,994,657 | 13,994,657 | — | — | ||||||||||||
JPMorgan Securities LLC | 531,613,842 | 531,613,842 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 115,282,788 | 115,282,788 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 166,642,924 | 166,642,924 | — | — | ||||||||||||
MUFG Securities Americas Inc. | 100,526,184 | 100,526,184 | — | — | ||||||||||||
Nomura Securities International Inc. | 18,258,288 | 18,258,288 | — | — | ||||||||||||
RBC Capital Markets LLC | 327,240,975 | 327,240,975 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 6,922,768 | 6,922,768 | — | — | ||||||||||||
SG Americas Securities LLC | 11,222,825 | 11,222,825 | — | — | ||||||||||||
State Street Bank & Trust Company | 39,574,261 | 39,574,261 | — | — | ||||||||||||
UBS AG | 110,681,244 | 110,681,244 | — | — | ||||||||||||
UBS Securities LLC | 5,910,444 | 5,910,444 | — | — | ||||||||||||
Wells Fargo Securities LLC | 336,160,241 | 336,160,241 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,943,916,981 | $ | 2,943,916,981 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts:The iShares iBoxx $ Investment Grade Corporate Bond ETF used futures contracts to mitigate or maintain duration risk in line with its underlying index as securities were purchased and sold. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
NOTESTO FINANCIAL STATEMENTS |
Notes to Financial Statements (continued)
For its investment advisory services to the iShares iBoxx $ High Yield Corporate Bond ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $19 billion | 0.5000 | % | ||
Over $19 billion, up to and including $33 billion | 0.4750 | |||
Over $33 billion, up to and including $47 billion | 0.4513 | |||
Over $47 billion | 0.4287 |
Each reduced 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.
For its investment advisory services to the iShares iBoxx $ Investment Grade Corporate Bond ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $121 billion | 0.1500 | % | ||
Over $121 billion, up to and including $181 billion | 0.1425 | |||
Over $181 billion, up to and including $231 billion | 0.1354 | |||
Over $231 billion, up to and including $281 billion | 0.1287 | |||
Over $281 billion | 0.1222 |
Each reduced 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.
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its statement of operations. For the year ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
iBoxx $ High Yield Corporate Bond | $ | 6,098,624 | ||
iBoxx $ Investment Grade Corporate Bond | 3,409,374 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
For the year ended February 28, 2019, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
iBoxx $ High Yield Corporate Bond | $ | 826,198 | $ | 46,325,650 | ||||
iBoxx $ Investment Grade Corporate Bond | 68,846,751 | 883,797,313 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the year ended February 28, 2019, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
iShares ETF | Purchases | Sales | Purchases | Sales | ||||||||||||
iBoxx $ High Yield Corporate Bond | $ | — | $ | — | $ | 2,116,860,849 | $ | 1,957,913,497 | ||||||||
iBoxx $ Investment Grade Corporate Bond | 24,831,055 | 14,987,861 | 4,600,692,591 | 3,096,463,411 |
For the year ended February 28, 2019, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
iBoxx $ High Yield Corporate Bond | $ | 37,379,309,994 | $ | 37,228,440,554 | ||||
iBoxx $ Investment Grade Corporate Bond | 22,329,631,951 | 23,585,490,293 |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of February 28, 2019, the following permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Loss | ||||||
iBoxx $ High Yield Corporate Bond | $ | (85,475,759 | ) | $ | 85,475,759 | |||
iBoxx $ Investment Grade Corporate Bond | (458,466,057 | ) | 458,466,057 |
The tax character of distributions paid was as follows:
| ||||||||
iShares ETF | Year Ended 02/28/19 | Year Ended 02/28/18 | ||||||
| ||||||||
iBoxx $ High Yield Corporate Bond | $ | 786,516,158 | $ | 936,329,183 | ||||
|
|
|
| |||||
iBoxx $ Investment Grade Corporate Bond | $ | 1,173,825,530 | $ | 1,129,426,920 | ||||
|
|
|
|
NOTESTO FINANCIAL STATEMENTS |
Notes to Financial Statements (continued)
As of February 28, 2019, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | | Undistributed Ordinary Income | | | Non-expiring Capital Loss Carryforwards | (a) | | Net Unrealized Gains (Losses) | (b) | Total | ||||||
iBoxx $ High Yield Corporate Bond | $ | 58,924,104 | $ | (880,749,485 | ) | $ | (496,423,068 | ) | $ | (1,318,248,449 | ) | |||||
iBoxx $ Investment Grade Corporate Bond | 97,426,256 | (240,484,386 | ) | (904,964,544 | ) | (1,048,022,674 | ) |
(a) | Amounts available to offset future realized capital gains. |
(b) | 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, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
iBoxx $ High Yield Corporate Bond | $ | 19,304,096,256 | $ | 31,018,183 | $ | (527,550,638 | ) | $ | (496,532,455 | ) | ||||||
iBoxx $ Investment Grade Corporate Bond | 36,301,396,566 | 88,120,314 | (993,084,858 | ) | (904,964,544 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their price more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||
Year Ended 02/28/19 | Year Ended 02/28/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
iBoxx $ High Yield Corporate Bond | ||||||||||||||||
Shares sold | 455,300,000 | $ | 38,560,415,044 | 234,300,000 | $ | 20,454,486,063 | ||||||||||
Shares redeemed | (453,600,000 | ) | (38,446,699,158 | ) | (268,100,000 | ) | (23,397,888,488 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 1,700,000 | $ | 113,715,886 | (33,800,000 | ) | $ | (2,943,402,425 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
iBoxx $ Investment Grade Corporate Bond | ||||||||||||||||
Shares sold | 210,900,000 | $ | 24,164,921,854 | 213,200,000 | $ | 25,559,315,034 | ||||||||||
Shares redeemed | (209,200,000 | ) | (23,919,230,367 | ) | (198,100,000 | ) | (23,683,010,110 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 1,700,000 | $ | 245,691,487 | 15,100,000 | $ | 1,876,304,924 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
12. | REGULATION S-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532,Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.
NOTESTO FINANCIAL STATEMENTS |
Notes to Financial Statements (continued)
Distributions for the year ended February 28, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
iBoxx $ High Yield Corporate Bond | $ | 936,329,183 | ||
iBoxx $ Investment Grade Corporate Bond | 1,129,426,920 |
Undistributed net investment income as of February 28, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
iBoxx $ High Yield Corporate Bond | $ | 62,019,010 | ||
iBoxx $ Investment Grade Corporate Bond | 102,140,732 |
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of iShares Trust and
Shareholders of iShares iBoxx $ High Yield Corporate Bond ETF and
iShares iBoxx $ Investment Grade Corporate Bond ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares iBoxx $ High Yield Corporate Bond ETF and iShares iBoxx $ Investment Grade Corporate Bond ETF (two of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of February 28, 2019, the related statements of operations for the year ended February 28, 2019, the statements of changes in net assets for each of the two years in the period ended February 28, 2019, including the related notes, and the financial highlights for each of the five years in the period ended February 28, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of February 28, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended February 28, 2019 and each of the financial highlights for each of the five years in the period ended February 28, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 28, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
San Francisco, California
April 18, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2019 BlackRock, Inc. All rights reserved.iSHARES andBLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-1010-1019
![]() | ![]() |
![]() | OCTOBER 31, 2019 |
2019 Annual Report |
iShares U.S. ETF Trust
· | iShares Interest Rate Hedged Long-Term Corporate Bond ETF | IGBH | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
Page | ||||
3 | ||||
4 | ||||
6 | ||||
6 | ||||
7 | ||||
Financial Statements | ||||
10 | ||||
11 | ||||
12 | ||||
13 | ||||
14 | ||||
19 | ||||
20 | ||||
21 | ||||
23 | ||||
24 | ||||
26 | ||||
27 | ||||
28 |
iShares U.S. ETF Trust
U.S. Bond Market Overview
The U.S. bond market advanced for the 12 months ended October 31, 2019 (“reporting period”). The Bloomberg Barclays U.S. Aggregate Bond Index, a broad measure of U.S. fixed-income performance, returned 11.51%.
U.S. economic growth declined to an annualized rate of approximately 1.9% in the third quarter of 2019. As measured by the consumer price index, the year-over-year U.S. inflation rate, which has remained subdued throughout the current economic expansion, decreased to 1.8% in October 2019.
The delayed impact of higher interest rates early in the reporting period and the trade dispute between the U.S. and China ultimately weighed on economic growth. Specifically, growth in the U.S. manufacturing and industrial sectors slowed to a standstill, while business spending contracted due to modest earnings growth and trade uncertainty. On the upside, consumer spending remained relatively resilient, which kept the U.S. economy afloat. The lowest unemployment rate in almost 50 years led to rising wages, while increased borrowing also supported consumer spending. Similarly, government spending increased, financed by a large increase in borrowing.
In response to deteriorating economic conditions, the U.S. Federal Reserve Bank (“Fed”) shifted to a more accommodative monetary policy starting in January 2019. After raising short-term interest rates in December 2018, the Fed reversed course and lowered them three times in 2019. The Fed also supported short-term lending markets to alleviate liquidity concerns.
Long-term bond yields declined more than short-term yields, reflecting lower inflation expectations and solid demand for the relative stability of U.S. Treasuries amid economic uncertainty. Consequently, the U.S. Treasury yield curve (a graphical representation of U.S. Treasury yields at different maturities) flattened before briefly inverting in August 2019, as10-year Treasury yields dipped belowone-year Treasury yields. An inverted yield curve has preceded each of the last seven economic recessions, so the yield curve inversion during the reporting period exacerbated investors’ concerns about the potential for an impending recession.
Lower interest rates drove gains in the value of U.S. Treasury securities, which are typically more sensitive to changes in interest rates than other types of bonds with similar maturities. U.S. Treasury securities with longer maturities posted significantly higher returns. Deficit spending led the U.S. government to maintain a high level of Treasury bond issuance, which increased supply, but demand from international investors seeking relatively higher U.S. yields helped support prices. Despite the decline in inflation, U.S. Treasury inflation-protected securities, which have even greater price sensitivity than nominal Treasuries at comparable maturities, also posted a solid return.
Corporate bonds benefited from more accommodative interest rate policies, generally posting strong returns. Declining yields meant that investors in search of income increasingly sought out corporate debt, which typically yields more than government debt. Demand for investment-grade corporate bonds was particularly high, as investors sought substitutes forlow-yielding sovereign debt. Narrow spreads (which measure the difference between yields for corporate bonds and lower-risk Treasury bonds) indicated that investors were confident in the financial resilience of U.S. corporations despite a slowing economy. Corporate bond issuance declined sharply early in the reporting period as interest rates rose and investors became concerned about an economic slowdown. However, issuance increased later in the reporting period when interest rates declined and the economy stabilized.
Among securitized bonds, commercial mortgage backed securities (“CMBSs”) posted the strongest performance amid a decline in issuance of new CMBS debt. Bonds backed by individual home mortgages advanced, despite a rise in refinancing due to lower mortgage rates. Other asset-backed bonds, including those backed by auto loans and credit card debt, also gained despite an increase in default rates, as low unemployment supported consumer spending.
MARKET OVERVIEW | 3 |
Fund Summary as of October 31, 2019 | iShares® Interest Rate Hedged Long-Term Corporate Bond ETF |
Investment Objective
TheiShares Interest Rate Hedged Long-Term 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 with remaining maturities greater than ten years. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares Long-Term Corporate Bond ETF. The Fund attempts to mitigate the interest rate risk of the underlying fund by holding short positions in U.S. Treasury futures or interest rate swaps.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | (0.03 | )% | 2.98 | % | (0.03 | )% | 13.41 | % | ||||||||||||
Fund Market | 0.34 | 3.06 | 0.34 | 13.78 | ||||||||||||||||
ICE Q70A Custom Index(a) | 0.25 | 3.58 | 0.25 | 16.23 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 7/22/15. The first day of secondary market trading was 7/23/15.
The ICE Q70A Custom Index is an unmanaged index that consists of the ICE BofAML 10+ Year US Corporate Index plus interest rate swaps that intend to hedge the interest rate exposure of the ICE BofAML 10+ Year US Corporate Index.
(a) | The ICE Q70A Custom Index reflects the performance of Bloomberg Barclays U.S. Long Credit Interest Rate Swaps Hedged Index through July 31, 2018 and beginning August 1, 2018 reflects the performance of the ICE Q70A Custom Index. |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 6 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (05/01/19) | Ending Account Value (10/31/19) | Expenses Paid During the Period (a)(b) | Beginning Account Value (05/01/19) | Ending Account Value (10/31/19) | Expenses Paid During the Period (a)(b) | Annualized Expense Ratio (a) | ||||||||||||||||||||||||
$ | 1,000.00 | $ | 990.80 | $ | 0.50 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.51 | 0.10 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 6 for more information. |
4 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Interest Rate Hedged Long-Term Corporate Bond ETF |
Portfolio Management Commentary
The Fund posted a relatively flat overall return for the reporting period. While the Fund’s securities gained significantly, this was offset by the strong negative impact of the interest rate hedge. On an unhedged basis, long-term investment-grade corporate bonds advanced significantly amid strong demand from investors seeking higher yields than those available from government securities, with relatively low risk.
Consumernon-cyclical companies contributed the most to the Fund’s performance, particularly in the pharmaceuticals, food products, and beverages industries. Pharmaceutical company debt gained as drug makers issued bonds to raise capital for merger and acquisition activity and to expand efforts to innovate new products. Food and beverage company bonds also advanced amid growing consumer spending on online food delivery services.
Financial bonds, notably in the banking industry, also contributed significantly to the Fund’s return. Debt issued by banks advanced, as strong balance sheets gave investors confidence that banks would be relatively resilient in the case of an economic downturn. Issuance of new bonds was relatively low, which helped to reduce yields, as supply was insufficient to meet investor demand. Communications companies also made a substantial contribution to the Index’s performance, especially in the wirelines industry. As large telecommunications companies took steps to reduce debt, their bond prices surged.
Declining interest rates meant negative returns from hedging activity, which was the largest detractor from the Fund’s return. Typically, increasing interest rates reduce the price of existing bonds, meaning a rise in interest rates detracts from bond fund performance. Conversely, falling interest rates usually increase bond prices. An interest rate hedged fund attempts to avoid these fluctuations by offsetting interest rate risk, primarily using interest rate swaps and Treasury futures contracts.
The Fund’s interest rate hedge seeks near-zero interest rate sensitivity. Consequently, the Fund’s return was minimally affected by interest rate fluctuations during the reporting period. With interest rate sensitivity hedged, the Fund fluctuated based on direct exposure to the yield premium of long-term corporate bonds, independent of falling interest rates.
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | Percent of Total Investments(a) | |||
Aaa | 2.8% | |||
Aa | 7.5 | |||
A | 36.5 | |||
Baa | 48.7 | |||
Ba | 3.0 | |||
Not Rated | 1.5 |
ALLOCATION BY MATURITY
Maturity | Percent of Total Investments(a) | |||
10-15 Years | 7.7% | |||
15-20 Years | 23.0 | |||
More than 20 Years | 69.3 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recentmonth-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
6 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
October 31, 2019 | iShares® Interest Rate Hedged Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies |
| |||||||
Exchange-Traded Funds — 92.6% | ||||||||
iShares Long-Term Corporate Bond ETF(a) | 828,526 | $ | 55,146,691 | |||||
|
| |||||||
Total Investment Companies — 92.6% |
| 55,146,691 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 2.2% | ||||||||
BlackRock Cash Funds: Treasury, | 1,336,000 | 1,336,000 | ||||||
|
| |||||||
Total Short-Term Investments — 2.2% |
| 1,336,000 | ||||||
|
| |||||||
Total Investments in Securities — 94.8% |
| 56,482,691 | ||||||
Other Assets, Less Liabilities — 5.2% |
| 3,075,524 | ||||||
|
| |||||||
Net Assets — 100.0% |
| $ | 59,558,215 | |||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 10/31/18 | Shares Purchased | Shares Sold | Shares Held at | Value at 10/31/19 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 9,059,128 | — | (9,059,128 | )(b) | — | $ | — | $ | 17,539 | (c) | $ | (1,997 | ) | $ | 890 | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 770,488 | 565,512 | (b) | — | 1,336,000 | 1,336,000 | 17,756 | — | — | |||||||||||||||||||||||||||
iShares Long-Term Corporate Bond ETF | 966,877 | 674,842 | (813,193 | ) | 828,526 | 55,146,691 | 2,125,778 | (415,546 | ) | 9,069,835 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
$ | 56,482,691 | $ | 2,161,073 | $ | (417,543 | ) | $ | 9,070,725 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Centrally Cleared Interest Rate Swaps
Paid by the Fund | Received by the Fund | Effective | Termination | Notional Amount (000) | Value | Upfront Paid | Unrealized | |||||||||||||||||||||
Rate | Frequency | Rate(a) | Frequency | |||||||||||||||||||||||||
1.17% | Semi-annual | 1.90% | Quarterly | N/A | 12/08/21 | $(1,522) | $ | 12,227 | $ | 18,680 | $ | (6,453 | ) | |||||||||||||||
2.38 | Semi-annual | 1.90 | Quarterly | N/A | 01/12/23 | (3,809) | (104,446 | ) | 65,881 | (170,327 | ) | |||||||||||||||||
1.44 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/26 | (5,198) | 30,681 | 26,334 | 4,347 | |||||||||||||||||||
3.25 | Semi-annual | 1.90 | Quarterly | N/A | 10/18/28 | (3,594) | (506,179 | ) | (479,683 | ) | (26,496 | ) | ||||||||||||||||
2.34 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/36 | (19,245) | (1,747,995 | ) | 1,429,659 | (3,177,654 | ) | |||||||||||||||||
2.41 | Semi-annual | 1.90 | Quarterly | N/A | 06/19/37 | (250) | (25,869 | ) | (21,465 | ) | (4,404 | ) | ||||||||||||||||
1.77 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/46 | (15,598) | 75,057 | 3,164,160 | (3,089,103 | ) | ||||||||||||||||||
3.33 | Semi-annual | 1.90 | Quarterly | N/A | 10/24/48 | (1,481) | (533,710 | ) | (495,186 | ) | (38,524 | ) | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
$ | (2,800,234 | ) | $ | 3,708,380 | $ | (6,508,614 | ) | |||||||||||||||||||||
|
|
|
|
|
|
(a) | Represents3-month LIBOR. Rate shown is the rate in effect as ofperiod-end. |
SCHEDULE OF INVESTMENTS | 7 |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged Long-Term Corporate Bond ETF
|
Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps
Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
Centrally Cleared Swaps(a) | $4,704,714 | $(996,334) | $4,347 | $(6,512,961) |
(a) | Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts. |
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Interest Rate Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Swaps — centrally cleared | ||||
Unrealized appreciation on centrally cleared swaps(a) | $ | 4,347 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Swaps — centrally cleared | ||||
Unrealized depreciation on centrally cleared swaps(a) | $ | 6,512,961 | ||
|
|
(a) | Net cumulative appreciation (depreciation) on centrally cleared interest rate swaps contracts are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Interest Rate Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Swaps | $ | (2,398,884 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Swaps | $ | (8,765,660 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Interest rate swaps: | ||||
Average notional value — pays fixed rate | $ | 51,212,295 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
8 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged Long-Term Corporate Bond ETF
|
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 55,146,691 | $ | — | $ | — | $ | 55,146,691 | ||||||||
Money Market Funds | 1,336,000 | — | — | 1,336,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 56,482,691 | $ | — | $ | — | $ | 56,482,691 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Swaps | $ | — | $ | 4,347 | $ | — | $ | 4,347 | ||||||||
Liabilities | ||||||||||||||||
Swaps | — | (6,512,961 | ) | — | (6,512,961 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | (6,508,614 | ) | $ | — | $ | (6,508,614 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 9 |
Statement of Assets and Liabilities
October 31, 2019
iShares Interest Rate Hedged Long-Term Corporate Bond ETF | ||||
ASSETS | ||||
Investments in securities, at value: | ||||
Affiliated(a) | $ | 56,482,691 | ||
Cash pledged: | ||||
Centrally cleared swaps | 4,311,000 | |||
Receivables: | ||||
Securities lending income — Affiliated | 9 | |||
Dividends | 2,310 | |||
|
| |||
Total assets | 60,796,010 | |||
|
| |||
LIABILITIES | ||||
Bank overdraft | 121,822 | |||
Payables: | ||||
Variation margin on centrally cleared swaps | 894,005 | |||
Capital shares redeemed | 216,716 | |||
Investment advisory fees | 5,252 | |||
|
| |||
Total liabilities | 1,237,795 | |||
|
| |||
NET ASSETS | $ | 59,558,215 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 62,926,616 | ||
Accumulated loss | (3,368,401 | ) | ||
|
| |||
NET ASSETS | $ | 59,558,215 | ||
|
| |||
Shares outstanding | 2,450,000 | |||
|
| |||
Net asset value | $ | 24.31 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Investments, at cost — Affiliated | $ | 50,565,420 |
See notes to financial statements.
10 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Year Ended October 31, 2019
iShares Interest Rate Hedged Long-Term Corporate Bond ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 2,143,534 | ||
Securities lending income — Affiliated — net | 17,539 | |||
|
| |||
Total investment income | 2,161,073 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 185,581 | |||
|
| |||
Total expenses | 185,581 | |||
Less: | ||||
Investment advisory fees waived | (132,557 | ) | ||
|
| |||
Total expenses after fees waived | 53,024 | |||
|
| |||
Net investment income | 2,108,049 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Affiliated | (456,066 | ) | ||
In-kind redemptions — Affiliated | 38,523 | |||
Swaps | (2,398,884 | ) | ||
|
| |||
Net realized loss | (2,816,427 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Affiliated | 9,070,725 | |||
Swaps | (8,765,660 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) | 305,065 | |||
|
| |||
Net realized and unrealized loss | (2,511,362 | ) | ||
|
| |||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (403,313 | ) | |
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 11 |
Statements of Changes in Net Assets
iShares Interest Rate Hedged Long-Term Corporate Bond ETF | ||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||
OPERATIONS |
| |||||||
Net investment income | $ | 2,108,049 | $ | 1,297,595 | ||||
Net realized gain (loss) | (2,816,427 | ) | 1,440,479 | |||||
Net change in unrealized appreciation (depreciation) | 305,065 | (2,484,789 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (403,313 | ) | 253,285 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
| |||||||
From net investment income and net realized gain | (2,946,309 | ) | (1,132,375 | ) | ||||
Return of capital | (12,010 | ) | — | |||||
|
|
|
| |||||
Decrease in net assets resulting from distributions to shareholders | (2,958,319 | ) | (1,132,375 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS |
| |||||||
Net increase in net assets derived from capital share transactions | 4,966,319 | 43,246,927 | ||||||
|
|
|
| |||||
NET ASSETS |
| |||||||
Total increase in net assets | 1,604,687 | 42,367,837 | ||||||
Beginning of year | 57,953,528 | 15,585,691 | ||||||
|
|
|
| |||||
End of year | $ | 59,558,215 | $ | 57,953,528 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
12 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
(For a share outstanding throughout each period)
iShares Interest Rate Hedged Long-Term Corporate Bond ETF | ||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Period From 07/22/15(a) to 10/31/15 | ||||||||||||||||
Net asset value, beginning of period | $ | 25.76 | $ | 25.98 | $ | 24.07 | $ | 24.08 | $ | 25.10 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(b) | 0.98 | 1.01 | 0.91 | 0.89 | 0.26 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | (1.01 | ) | (0.32 | ) | 1.78 | (0.28 | ) | (1.09 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | (0.03 | ) | 0.69 | 2.69 | 0.61 | (0.83 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(d) | ||||||||||||||||||||
From net investment income | (0.96 | ) | (0.91 | ) | (0.76 | ) | (0.60 | ) | (0.13 | ) | ||||||||||
From net realized gain | (0.45 | ) | — | — | — | — | ||||||||||||||
Return of capital | (0.01 | ) | — | (0.02 | ) | (0.02 | ) | (0.06 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (1.42 | ) | (0.91 | ) | (0.78 | ) | (0.62 | ) | (0.19 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 24.31 | $ | 25.76 | $ | 25.98 | $ | 24.07 | $ | 24.08 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | (0.03 | )% | 2.66 | % | 11.36 | % | 2.49 | %(e) | (3.19 | )%(e)(f) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(g) | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | %(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived(g) | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.12 | %(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 3.98 | % | 3.86 | % | 3.62 | % | 3.78 | % | 3.80 | %(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 59,558 | $ | 57,954 | $ | 15,586 | $ | 8,423 | $ | 8,429 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(i)(j) | 13 | % | 5 | % | 6 | % | 9 | % | 4 | %(f) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | The total return disclosed is based on the net asset value (“NAV”) calculated daily for the creation and redemption of shares in the Fund, which may differ from the NAV calculated for financial reporting purposes. Based on the NAV calculated for financial reporting purposes, the total returns for the year ended October 31, 2016 and the period ended October 31, 2015 were 2.62% and-3.31%, respectively. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludesin-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 13 |
1. | ORGANIZATION |
iShares U.S. ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following fund (the “Fund”):
iShares ETF | Diversification Classification | |
Interest Rate Hedged Long-Term Corporate Bond | Diversified |
Currently the Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedule of investments for the underlying fund should be read in conjunction with the Fund’s financial statements.
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions from the underlying funds, if any, are recognized on theex-dividend date. Interest income is accrued daily.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by the Fund are recorded on theex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.
Indemnifications:In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:
• | Exchange-traded funds andclosed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
14 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for the Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of October 31, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, or its affiliates and is disclosed in the schedule of investments. Anynon-cash collateral received cannot be sold,re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for the Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of October 31, 2019 and the value of the related cash collateral are disclosed in the statement of assets and liabilities.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Swaps:Swaps are financial agreements to exchange cash flows in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Interest rate swaps are used by the Fund to mitigate the potential impact of interest rates on the performance of the bonds held by the Fund or its underlying fund.
Swap agreements are privately negotiated in theover-the-counter market and may be entered into as a bilateral contract or centrally cleared (“centrally cleared swaps”). The Fund enters into centrally cleared swaps.
In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (“CCP”) and the CCP becomes the Fund’s counterparty on the swap. The Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the schedule of investments and cash deposited is shown as cash pledged for centrally cleared swaps on the statement of assets and liabilities. The daily change in valuation of centrally cleared swaps is recorded as variation margin receivable or payable on centrally cleared swaps in the statement of assets and liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the statement of operations. Payments received from (paid to) the counterparty are amortized over the term of the contract as a realized gain (loss) in the statement of operations.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
NOTESTO FINANCIAL STATEMENTS | 15 |
Notes to Financial Statements (continued)
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Fund, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee of 0.35%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Expense Waivers:A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through February 28, 2022 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares Long-Term Corporate Bond ETF (“IGLB”), after taking into account any fee waivers by IGLB, plus 0.10%.
Distributor: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.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold, the Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in its statement of operations. For the year ended October 31, 2019, the Fund paid BTC $3,610 for securities lending agent services.
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
7. | PURCHASES AND SALES |
For the year ended October 31, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Interest Rate Hedged Long-Term Corporate Bond | $ | 6,493,793 | $ | 18,549,699 |
For the year ended October 31, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Interest Rate Hedged Long-Term Corporate Bond | $ | 33,762,869 | $ | 29,185,636 |
16 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
8. | 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.
Management has analyzed tax laws and regulations and their application to the Fund as of October 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2019, the following permanent differences attributable to realized gains (losses) fromin-kind redemptions, were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Loss | ||||||
Interest Rate Hedged Long-Term Corporate Bond | $ | (61,587 | ) | $ | 61,587 |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 10/31/19 | Year Ended 10/31/18 | ||||||
Interest Rate Hedged Long-Term Corporate Bond | ||||||||
Ordinary income | $ | 2,048,389 | $ | 1,132,375 | ||||
Long-term capital gains | 897,920 | — | ||||||
Return of capital | 12,010 | — | ||||||
|
|
|
| |||||
$ | 2,958,319 | $ | 1,132,375 | |||||
|
|
|
|
As of October 31, 2019, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | Non-expiring Capital Loss Carryforwards(a) | Net Unrealized Gains (Losses)(b) | Total | |||||||||
Interest Rate Hedged Long-Term Corporate Bond | $ | (2,504,399) | $ | (864,002) | $ | (3,368,401 | ) |
(a) | Amounts available to offset future realized capital gains. |
(b) | The difference between book-basis andtax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales. |
As of October 31, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Interest Rate Hedged Long-Term Corporate Bond | $ | 50,838,079 | $ | 5,917,271 | $ | (6,781,273 | ) | $ | (864,002 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.
Market Risk: Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
NOTESTO FINANCIAL STATEMENTS | 17 |
Notes to Financial Statements (continued)
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of the Fund are not redeemable.
Transactions in capital shares were as follows:
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Interest Rate Hedged Long-Term Corporate Bond | ||||||||||||||||
Shares sold | 1,450,000 | $ | 35,926,644 | 1,650,000 | $ | 43,246,927 | ||||||||||
Shares redeemed | (1,250,000 | ) | (30,960,325 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 200,000 | $ | 4,966,319 | 1,650,000 | $ | 43,246,927 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision. The appeal was fully briefed on January 18, 2019, and a hearing on Plaintiffs’ appeal took place on November 19, 2019.
12. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
18 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of iShares U.S. ETF Trust and
Shareholders of iShares Interest Rate Hedged Long-Term Corporate Bond ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of iShares Interest Rate Hedged Long-Term Corporate Bond ETF (one of the funds constituting iShares U.S. ETF Trust, referred to hereafter as the “Fund”) as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019, including the related notes, and the financial highlights for each of the four years in the period ended October 31, 2019 and for the period July 22, 2015 (commencement of operations) through October 31, 2015 (hereafter referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2019 and the financial highlights for each of the four years in the period ended October 31, 2019 and for the period July 22, 2015 (commencement of operations) to October 31, 2015 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 19 |
Important Tax Information (unaudited)
For the fiscal year ended October 31, 2019, the Fund hereby designates the following maximum amount allowable as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations:
iShares ETF | Interest-Related Dividends | |||
Interest Rate Hedged Long-Term Corporate Bond | $ | 1,021,883 |
The Fund hereby designates the following amount of distributions from direct federal obligation interest for the fiscal year ended October 31, 2019:
iShares ETF | Federal Obligation Interest | |||
Interest Rate Hedged Long-Term Corporate Bond | $ | 4,857 |
The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
The following distribution amounts are hereby designated for the fiscal year ended October 31, 2019:
iShares ETF | 20% Rate Long-Term Capital Gain Dividends | |||
Interest Rate Hedged Long-Term Corporate Bond | $ | 897,920 |
20 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
I. iShares Interest Rate Hedged Long-Term Corporate Bond ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, 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 and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Fund:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.
The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with expectations relative to the Fund’s reference benchmark.
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 capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the 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, which were provided at the June17-19, 2019 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 21 |
Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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 and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with a similar investment strategy or investment mandate as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board 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 BFAaffiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the 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 ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
22 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year | % 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 Long-Term Corporate Bond(a) | $ | 0.948094 | $ | 0.448960 | $ | 0.019908 | $ | 1.416962 | 67 | % | 32 | % | 1 | % | 100 | % |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Premium/Discount Information
The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest ask on the primary securities exchange on which shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the value of its portfolio holdings. The Market Price of a 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 the 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.
Premium/discount information for the Fund covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at iShares.com.
The following information shows the frequency of distributions of premiums and discounts for the Fund for the immediately preceding five calendar years (or from the date the Fund began trading on the secondary market, if less than five years) through the date of the most recent calendarquarter-end. Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.
iShares Interest Rate Hedged Long-Term Corporate Bond ETF
Period Covered: July 23, 2015 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 1.5% and Less than 2.0% | 1 | 0.09 | % | |||||
Greater than 1.0% and Less than 1.5% | 9 | 0.85 | ||||||
Greater than 0.5% and Less than 1.0% | 37 | 3.52 | ||||||
Greater than 0.0% and Less than 0.5% | 542 | 51.43 | ||||||
At NAV | 25 | 2.37 | ||||||
Less than 0.0% and Greater than –0.5% | 417 | 39.57 | ||||||
Less than –0.5% and Greater than –1.0% | 21 | 1.99 | ||||||
Less than –1.0% and Greater than –1.5% | 1 | 0.09 | ||||||
Less than –1.5% and Greater than –2.0% | 1 | 0.09 | ||||||
|
|
|
| |||||
1,054 | 100.00 | % | ||||||
|
|
|
|
SUPPLEMENTAL INFORMATION | 23 |
Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. 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 (the “BlackRock-advised Funds”) are organized into one complex ofopen-end equity, multi-asset, index and money market funds (the “BlackRock Multi-Asset Complex”), one complex ofclosed-end funds andopen-endnon-index fixed-income funds (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares Trust, and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 352 funds as of October 31, 2019. With the exception of Robert S. Kapito, Salim Ramji, Charles Park and Neal J. Andrews, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji, Mr. Park and Mr. Andrews is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free1-800-iShares(1-800-474-2737).
Interested Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Robert S. Kapito(a) (62) | Trustee (since 2011). | President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (49) | Trustee (since 2019). | Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Director of iShares, Inc. (since 2019); Trustee of iShares Trust (since 2019). |
(a) | Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
(b) | Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Cecilia H. Herbert (70) | Trustee (since 2011); Independent Board Chair (since 2016). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Technology and Quality Committees of Stanford Health Care (since 2016); Member of the Audit Committee (since 2018) and Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); 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. | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (63) | Trustee (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Director of iShares, Inc. (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016) and Director of The Hanover Insurance Group, Inc. (since (2016). | |||
Richard L. Fagnani (64) | Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). |
24 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information (continued)
Independent Trustees(continued) | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
John E. Kerrigan (64) | Trustee (since 2011); Nominating and Governance and Equity Plus Committee Chairs (since 2019). | Chief Investment Officer, Santa Clara University (since 2002). | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005). | |||
Drew E. Lawton (60) | Trustee (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). | |||
John E. Martinez (58) | Trustee (since 2011); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005). | Director of iShares, Inc. (since 2003); Trustee of iShares Trust (since 2003); Director of Cloudera Foundation (since 2017); Director of Reading Partners (2012-2016). | |||
Madhav V. Rajan (55) | Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Director of iShares, Inc. (since 2011); Trustee of iShares Trust (since 2011). |
Officers | ||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | ||
Armando Senra (48) | President (since 2019). | Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and LATAM iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006). | ||
Neal J. Andrews (53) | Treasurer and Chief Financial Officer (since 2019). | Managing Director, BlackRock, Inc. (since 2006); Chief Financial Officer of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2007). | ||
Charles Park (52) | Chief Compliance Officer (since 2011). | Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||
Deepa Damre (44) | Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||
Scott Radell (50) | Executive Vice President (since 2012). | Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||
Alan Mason (58) | Executive Vice President (since 2016). | Managing Director, BlackRock, Inc. (since 2009). | ||
Marybeth Leithead (56) | Executive Vice President (since 2019). | Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016). |
TRUSTEEAND OFFICER INFORMATION | 25 |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The iShares Fund’s FormsN-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
26 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Fixed Income | ||
LIBOR | London Interbank Offered Rate |
GLOSSARYOF TERMS USEDINTHIS REPORT | 27 |
Additional Financial Information
Schedule of Investments (Unaudited)
October 31, 2019
Statement of Assets and Liabilities (Unaudited)
October 31, 2019
Audited Financial Statements
February 28, 2019
iShares Trust
iShares Long-Term Corporate Bond ETF | IGLB | NYSE Arca
Schedule of Investments (unaudited) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes |
| |||||||
Advertising — 0.0% |
| |||||||
Interpublic Group of Companies Inc. (The), 5.40%, 10/01/48 (Call 04/01/48)(a) | $ | 95 | $ | 115,170 | ||||
|
| |||||||
Aerospace & Defense — 2.0% | ||||||||
BAE Systems Holdings Inc., 4.75%, 10/07/44(b) | 465 | 543,721 | ||||||
BAE Systems PLC, 5.80%, 10/11/41 | 25 | 32,765 | ||||||
Boeing Co. (The) | 250 | 256,082 | ||||||
3.25%, 02/01/35 (Call 11/01/34) | 425 | 445,248 | ||||||
3.38%, 06/15/46 (Call 12/15/45)(a) | 205 | 206,126 | ||||||
3.50%, 03/01/39 (Call 09/01/38) | 495 | 514,489 | ||||||
3.50%, 03/01/45 (Call 09/01/44) | 25 | 24,786 | ||||||
3.55%, 03/01/38 (Call 09/01/37) | 280 | 294,251 | ||||||
3.60%, 05/01/34 (Call 02/01/34) | 1,125 | 1,222,036 | ||||||
3.65%, 03/01/47 (Call 09/01/46) | 225 | 234,538 | ||||||
3.75%, 02/01/50 (Call 08/01/49) | 1,285 | 1,368,724 | ||||||
3.83%, 03/01/59 (Call 09/01/58) | 250 | 266,833 | ||||||
3.85%, 11/01/48 (Call 05/01/48) | 585 | 628,545 | ||||||
3.90%, 05/01/49 (Call 11/01/48) | 250 | 271,454 | ||||||
3.95%, 08/01/59 (Call 02/01/59) | 720 | 786,357 | ||||||
5.88%, 02/15/40 | 150 | 201,870 | ||||||
6.13%, 02/15/33 | 50 | 66,143 | ||||||
6.63%, 02/15/38 | 156 | 222,917 | ||||||
6.88%, 03/15/39 | 982 | 1,457,415 | ||||||
General Dynamics Corp., 3.60%, 11/15/42 (Call 05/15/42)(a) | 200 | 221,192 | ||||||
L3Harris Technologies Inc. | 525 | 623,054 | ||||||
5.05%, 04/27/45 (Call 10/27/44) | 265 | 331,822 | ||||||
6.15%, 12/15/40 | 130 | 176,206 | ||||||
Lockheed Martin Corp. | 1,114 | 1,209,390 | ||||||
3.80%, 03/01/45 (Call 09/01/44) | 1,441 | 1,585,612 | ||||||
4.07%, 12/15/42 | 720 | 830,000 | ||||||
4.09%, 09/15/52 (Call 03/15/52) | 1,490 | 1,735,825 | ||||||
4.50%, 05/15/36 (Call 11/15/35)(a) | 735 | 877,212 | ||||||
4.70%, 05/15/46 (Call 11/15/45) | 978 | 1,231,038 | ||||||
5.72%, 06/01/40 | 50 | 67,515 | ||||||
Series B, 6.15%, 09/01/36(a) | 150 | 208,011 | ||||||
Northrop Grumman Corp. | 675 | 737,374 | ||||||
4.03%, 10/15/47 (Call 04/15/47)(a) | 1,570 | 1,766,417 | ||||||
4.75%, 06/01/43 | 790 | 967,107 | ||||||
5.05%, 11/15/40(a) | 200 | 247,747 | ||||||
Northrop Grumman Systems Corp., 7.75%, 02/15/31 | 425 | 616,795 | ||||||
Raytheon Co. | 100 | 116,455 | ||||||
4.70%, 12/15/41(a) | 150 | 186,689 | ||||||
4.88%, 10/15/40 | 322 | 403,098 | ||||||
Rockwell Collins Inc. | 1,030 | 1,203,023 | ||||||
4.80%, 12/15/43 (Call 06/15/43) | 330 | 402,580 | ||||||
United Technologies Corp. | 960 | 1,064,635 | ||||||
4.05%, 05/04/47 (Call 11/04/46) | 685 | 791,344 | ||||||
4.15%, 05/15/45 (Call 11/16/44) | 820 | 940,364 | ||||||
4.45%, 11/16/38 (Call 05/16/38)(a) | 699 | 829,351 | ||||||
4.50%, 06/01/42 | 2,025 | 2,429,920 | ||||||
4.63%, 11/16/48 (Call 05/16/48) | 1,570 | 1,981,632 |
Security | Par (000) | Value | ||||||
Aerospace & Defense (continued) | ||||||||
5.40%, 05/01/35 | $ | 121 | $ | 155,409 | ||||
5.70%, 04/15/40 | 870 | 1,161,618 | ||||||
6.05%, 06/01/36 | 190 | 255,249 | ||||||
6.13%, 07/15/38 | 1,300 | 1,801,527 | ||||||
|
| |||||||
36,199,511 | ||||||||
Agriculture — 1.4% | ||||||||
Altria Group Inc. | 1,130 | 1,047,271 | ||||||
4.25%, 08/09/42 | 825 | 804,049 | ||||||
4.50%, 05/02/43(a) | 890 | 896,115 | ||||||
5.38%, 01/31/44 | 1,587 | 1,774,286 | ||||||
5.80%, 02/14/39 (Call 08/14/38) | 550 | 632,348 | ||||||
5.95%, 02/14/49 (Call 08/14/48)(a) | 1,390 | 1,635,081 | ||||||
6.20%, 02/14/59 (Call 08/14/58) | 1,015 | 1,189,074 | ||||||
Archer-Daniels-Midland Co. | 415 | 458,149 | ||||||
4.02%, 04/16/43 | 489 | 559,726 | ||||||
4.50%, 03/15/49 (Call 09/15/48) | 535 | 668,967 | ||||||
4.54%, 03/26/42 | 663 | 812,684 | ||||||
5.38%, 09/15/35 | 10 | 12,740 | ||||||
BAT Capital Corp. | 2,135 | 2,108,456 | ||||||
4.54%, 08/15/47 (Call 02/15/47) | 1,665 | 1,610,256 | ||||||
Cargill Inc., 3.88%, 05/23/49 (Call 11/23/48)(b) | 750 | 860,945 | ||||||
Philip Morris International Inc. | 779 | 794,701 | ||||||
4.13%, 03/04/43 | 846 | 906,231 | ||||||
4.25%, 11/10/44 | 860 | 948,169 | ||||||
4.38%, 11/15/41 | 952 | 1,046,035 | ||||||
4.50%, 03/20/42 | 635 | 704,252 | ||||||
4.88%, 11/15/43 | 655 | 771,439 | ||||||
6.38%, 05/16/38 | 1,235 | 1,687,867 | ||||||
Reynolds American Inc. | 646 | 729,691 | ||||||
5.85%, 08/15/45 (Call 02/15/45) | 1,781 | 1,980,225 | ||||||
6.15%, 09/15/43 | 390 | 441,781 | ||||||
7.25%, 06/15/37 | 518 | 658,574 | ||||||
|
| |||||||
25,739,112 | ||||||||
Apparel — 0.1% | ||||||||
NIKE Inc. | 300 | 316,860 | ||||||
3.63%, 05/01/43 (Call 11/01/42) | 520 | 567,607 | ||||||
3.88%, 11/01/45 (Call 05/01/45) | 730 | 835,218 | ||||||
VF Corp., 6.45%, 11/01/37 | 150 | 214,394 | ||||||
|
| |||||||
1,934,079 | ||||||||
Auto Manufacturers — 0.7% | ||||||||
Daimler Finance North America LLC, 8.50%, 01/18/31 | 1,276 | 1,925,871 | ||||||
Ford Holdings LLC, 9.30%, 03/01/30 | 746 | 930,683 | ||||||
Ford Motor Co. | 1,043 | 906,791 | ||||||
5.29%, 12/08/46 (Call 06/08/46) | 800 | 739,167 | ||||||
7.40%, 11/01/46(a) | 499 | 565,846 | ||||||
7.45%, 07/16/31 | 1,125 | 1,307,913 | ||||||
General Motors Co. | 723 | 737,597 | ||||||
5.15%, 04/01/38 (Call 10/01/37) | 918 | 930,310 | ||||||
5.20%, 04/01/45(a) | 895 | 889,253 | ||||||
5.40%, 04/01/48 (Call 10/01/47) | 900 | 913,696 | ||||||
5.95%, 04/01/49 (Call 10/01/48) | 464 | 510,433 |
SCHEDULE OF INVESTMENTS | 29 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Auto Manufacturers (continued) | ||||||||
6.25%, 10/02/43 | $ | 1,042 | $ | 1,164,226 | ||||
6.60%, 04/01/36 (Call 10/01/35) | 955 | 1,108,691 | ||||||
6.75%, 04/01/46 (Call 10/01/45) | 545 | 628,998 | ||||||
|
| |||||||
13,259,475 | ||||||||
Auto Parts & Equipment — 0.1% | ||||||||
Aptiv PLC | ||||||||
4.40%, 10/01/46 (Call 04/01/46) | 100 | 97,223 | ||||||
5.40%, 03/15/49 (Call 09/15/48) | 406 | 458,191 | ||||||
BorgWarner Inc., 4.38%, 03/15/45 (Call 09/15/44)(a) | 295 | 304,614 | ||||||
Lear Corp., 5.25%, 05/15/49 (Call 11/15/48) | 360 | 368,757 | ||||||
|
| |||||||
1,228,785 | ||||||||
Banks — 7.7% | ||||||||
Bank of America Corp. | ||||||||
3.95%, 01/23/49 (Call 01/23/48)(a)(c)(d) | 1,185 | 1,337,410 | ||||||
4.08%, 04/23/40 (Call 04/23/39)(c)(d) | 1,395 | 1,567,393 | ||||||
4.24%, 04/24/38 (Call 04/24/37)(c)(d) | 1,336 | 1,517,231 | ||||||
4.33%, 03/15/50 (Call 03/15/49)(a)(c)(d) | 1,264 | 1,501,667 | ||||||
4.44%, 01/20/48 (Call 01/20/47)(c)(d) | 1,389 | 1,669,473 | ||||||
4.88%, 04/01/44 | 855 | 1,075,619 | ||||||
5.00%, 01/21/44 | 1,457 | 1,857,305 | ||||||
5.88%, 02/07/42 | 708 | 996,942 | ||||||
6.11%, 01/29/37 | 1,510 | 2,004,945 | ||||||
7.75%, 05/14/38 | 1,365 | 2,104,730 | ||||||
Series L, 4.75%, 04/21/45 | 568 | 697,630 | ||||||
Bank of America N.A., 6.00%, 10/15/36 | 1,500 | 2,051,753 | ||||||
Barclays PLC | ||||||||
4.95%, 01/10/47 | 1,570 | 1,833,856 | ||||||
5.25%, 08/17/45 | 1,080 | 1,295,784 | ||||||
BNP Paribas SA, 7.20%, (Call 06/25/37)(b)(c)(d)(e) | 500 | 556,250 | ||||||
Citigroup Inc. | ||||||||
3.88%, 01/24/39 (Call 01/24/38)(c)(d) | 1,283 | 1,409,823 | ||||||
4.28%, 04/24/48 (Call 04/24/47)(a)(c)(d) | 1,228 | 1,451,412 | ||||||
4.65%, 07/30/45 | 950 | 1,162,630 | ||||||
4.65%, 07/23/48 (Call 06/23/48) | 1,799 | 2,218,933 | ||||||
4.75%, 05/18/46 | 1,920 | 2,256,677 | ||||||
5.30%, 05/06/44 | 850 | 1,068,059 | ||||||
5.88%, 02/22/33 | 325 | 405,693 | ||||||
5.88%, 01/30/42 | 747 | 1,030,355 | ||||||
6.00%, 10/31/33 | 523 | 667,343 | ||||||
6.13%, 08/25/36 | 482 | 632,000 | ||||||
6.63%, 06/15/32 | 851 | 1,131,373 | ||||||
6.68%, 09/13/43 | 580 | 841,657 | ||||||
6.88%, 03/05/38 | 110 | 157,564 | ||||||
8.13%, 07/15/39 | 1,130 | 1,858,927 | ||||||
Commonwealth Bank of Australia | ||||||||
3.74%, 09/12/39(a)(b) | 480 | 481,496 | ||||||
3.90%, 07/12/47(a)(b) | 554 | 627,328 | ||||||
4.32%, 01/10/48(a)(b) | 820 | 905,431 | ||||||
Cooperatieve Rabobank UA | ||||||||
5.25%, 05/24/41 | 1,168 | 1,610,675 | ||||||
5.25%, 08/04/45 | 1,751 | 2,220,396 | ||||||
5.75%, 12/01/43 | 740 | 983,201 | ||||||
Credit Suisse Group Funding Guernsey Ltd., 4.88%, 05/15/45 | 1,656 | 2,059,269 | ||||||
Fifth Third Bancorp., 8.25%, 03/01/38 | 895 | 1,374,368 | ||||||
First Republic Bank/CA | ||||||||
4.38%, 08/01/46 (Call 02/01/46) | 600 | 671,697 | ||||||
4.63%, 02/13/47 | 395 | 457,463 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Goldman Sachs Group Inc. (The) | ||||||||
4.02%, 10/31/38 (Call 10/31/37)(c)(d) | $ | 1,795 | $ | 1,937,987 | ||||
4.41%, 04/23/39 (Call 04/23/38)(c)(d) | 1,860 | 2,100,943 | ||||||
4.75%, 10/21/45 (Call 04/21/45) | 1,634 | 1,991,606 | ||||||
4.80%, 07/08/44 (Call 01/08/44) | 1,895 | 2,304,244 | ||||||
5.15%, 05/22/45 | 1,395 | 1,697,697 | ||||||
6.13%, 02/15/33 | 225 | 301,326 | ||||||
6.25%, 02/01/41 | 1,805 | 2,528,785 | ||||||
6.45%, 05/01/36 | 155 | 203,053 | ||||||
6.75%, 10/01/37 | 4,130 | 5,619,594 | ||||||
HSBC Bank USA N.A., 7.00%, 01/15/39 | 265 | 383,708 | ||||||
HSBC Bank USA N.A./New York NY | ||||||||
5.63%, 08/15/35 | 865 | 1,079,811 | ||||||
5.88%, 11/01/34 | 150 | 194,230 | ||||||
HSBC Holdings PLC | ||||||||
5.25%, 03/14/44(a) | 595 | 746,086 | ||||||
6.10%, 01/14/42 | 953 | 1,358,476 | ||||||
6.50%, 05/02/36 | 2,150 | 2,889,117 | ||||||
6.50%, 09/15/37 | 2,490 | 3,387,434 | ||||||
6.80%, 06/01/38 | 1,580 | 2,224,738 | ||||||
7.63%, 05/17/32 | 419 | 584,501 | ||||||
JPMorgan Chase & Co. | ||||||||
3.88%, 07/24/38 (Call 07/24/37)(c)(d) | 2,275 | 2,491,891 | ||||||
3.90%, 01/23/49 (Call 01/23/48)(c)(d) | 1,540 | 1,709,041 | ||||||
3.96%, 11/15/48 (Call 11/15/47)(c)(d) | 2,110 | 2,361,256 | ||||||
4.03%, 07/24/48 (Call 07/24/47)(a)(c)(d) | 1,530 | 1,731,196 | ||||||
4.26%, 02/22/48 (Call 02/22/47)(c)(d) | 1,395 | 1,628,023 | ||||||
4.85%, 02/01/44 | 645 | 813,090 | ||||||
4.95%, 06/01/45 | 1,625 | 2,019,576 | ||||||
5.40%, 01/06/42 | 605 | 796,847 | ||||||
5.50%, 10/15/40 | 1,315 | 1,737,444 | ||||||
5.60%, 07/15/41 | 965 | 1,295,846 | ||||||
5.63%, 08/16/43 | 1,528 | 2,031,177 | ||||||
6.40%, 05/15/38 | 1,915 | 2,726,173 | ||||||
Lloyds Banking Group PLC | ||||||||
4.34%, 01/09/48(a) | 1,455 | 1,540,673 | ||||||
5.30%, 12/01/45 | 435 | 527,330 | ||||||
Mitsubishi UFJ Financial Group Inc. | ||||||||
3.75%, 07/18/39 | 625 | 674,814 | ||||||
4.15%, 03/07/39 | 655 | 742,129 | ||||||
4.29%, 07/26/38 | 790 | 908,526 | ||||||
Morgan Stanley | ||||||||
3.97%, 07/22/38 (Call 07/22/37)(c)(d) | 1,296 | 1,419,004 | ||||||
4.30%, 01/27/45(a) | 1,590 | 1,848,854 | ||||||
4.38%, 01/22/47 | 2,115 | 2,494,753 | ||||||
4.46%, 04/22/39 (Call 04/22/38)(a)(c)(d) | 1,200 | 1,392,818 | ||||||
6.38%, 07/24/42 | 1,375 | 2,016,661 | ||||||
7.25%, 04/01/32 | 623 | 890,843 | ||||||
Regions Bank/Birmingham AL, 6.45%, 06/26/37 | 410 | 540,210 | ||||||
Regions Financial Corp., 7.38%, 12/10/37 | 380 | 546,115 | ||||||
Santander UK Group Holdings PLC, 5.63%, 09/15/45(a)(b). | 695 | 841,099 | ||||||
Societe Generale SA, 5.63%, 11/24/45(b) | 80 | 96,602 | ||||||
Standard Chartered PLC | ||||||||
5.30%, 01/09/43(a)(b) | 400 | 469,848 | ||||||
5.70%, 03/26/44(a)(b) | 1,715 | 2,131,328 | ||||||
UBS AG/London, 4.50%, 06/26/48(b) | 785 | 997,199 | ||||||
Wachovia Corp. | ||||||||
5.50%, 08/01/35(a) | 887 | 1,126,208 | ||||||
6.55%, 10/15/35 | 260 | 339,526 | ||||||
7.50%, 04/15/35 | 125 | 176,858 |
30 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
Wells Fargo & Co. | ||||||||
3.90%, 05/01/45 | $ | 1,422 | $ | 1,606,945 | ||||
4.40%, 06/14/46 | 1,740 | 1,972,898 | ||||||
4.65%, 11/04/44 | 1,720 | 2,026,115 | ||||||
4.75%, 12/07/46 | 1,690 | 2,018,591 | ||||||
4.90%, 11/17/45 | 1,900 | 2,298,982 | ||||||
5.38%, 02/07/35 | 385 | 493,646 | ||||||
5.38%, 11/02/43 | 1,510 | 1,912,551 | ||||||
5.61%, 01/15/44 | 1,760 | 2,304,181 | ||||||
Wells Fargo Bank N.A. | ||||||||
5.95%, 08/26/36 | 270 | 358,873 | ||||||
6.60%, 01/15/38 | 1,060 | 1,524,132 | ||||||
Wells Fargo Capital X, 5.95%, 12/01/86 | 668 | 838,357 | ||||||
Westpac Banking Corp., 4.42%, 07/24/39 | 575 | 632,928 | ||||||
|
| |||||||
142,336,251 | ||||||||
Beverages — 3.0% | ||||||||
Anheuser-Busch Companies LLC/Anheuser-Busch InBev Worldwide Inc. | ||||||||
4.70%, 02/01/36 (Call 08/01/35) | 4,467 | 5,186,712 | ||||||
4.90%, 02/01/46 (Call 08/01/45) | 5,780 | 6,933,473 | ||||||
Anheuser-Busch InBev Finance Inc. | ||||||||
4.00%, 01/17/43 | 265 | 281,092 | ||||||
4.63%, 02/01/44 | 1,232 | 1,402,232 | ||||||
4.70%, 02/01/36 (Call 08/01/35)(a) | 580 | 673,448 | ||||||
4.90%, 02/01/46 (Call 08/01/45) | 1,399 | 1,662,574 | ||||||
Anheuser-Busch InBev Worldwide Inc. | ||||||||
3.75%, 07/15/42(a) | 735 | 753,322 | ||||||
4.38%, 04/15/38 (Call 10/15/37) | 580 | 647,879 | ||||||
4.44%, 10/06/48 (Call 04/06/48) | 1,025 | 1,150,519 | ||||||
4.60%, 04/15/48 (Call 10/15/47) | 2,018 | 2,302,731 | ||||||
4.75%, 04/15/58 (Call 10/15/57) | 875 | 1,029,035 | ||||||
4.90%, 01/23/31 (Call 10/23/30) | 1,223 | 1,467,940 | ||||||
4.95%, 01/15/42(a) | 535 | 635,390 | ||||||
5.45%, 01/23/39 (Call 07/23/38) | 1,620 | 2,039,832 | ||||||
5.55%, 01/23/49 (Call 07/23/48) | 3,060 | 4,041,060 | ||||||
5.80%, 01/23/59 (Call 07/23/58) | 2,485 | 3,348,334 | ||||||
8.00%, 11/15/39 | 315 | 495,715 | ||||||
8.20%, 01/15/39 | 627 | 1,000,240 | ||||||
Bacardi Ltd. | ||||||||
5.15%, 05/15/38 (Call 11/15/37)(b) | 300 | 328,628 | ||||||
5.30%, 05/15/48 (Call 11/15/47)(a)(b) | 475 | 534,972 | ||||||
Brown-Forman Corp. | ||||||||
4.00%, 04/15/38 (Call 10/15/37) | 75 | 84,958 | ||||||
4.50%, 07/15/45 (Call 01/15/45) | 213 | 264,300 | ||||||
Coca-Cola FEMSA SAB de CV, 5.25%, 11/26/43 | 306 | 384,508 | ||||||
Constellation Brands Inc. | ||||||||
4.10%, 02/15/48 (Call 08/15/47)(a) | 415 | 439,801 | ||||||
4.50%, 05/09/47 (Call 11/09/46) | 750 | 833,591 | ||||||
5.25%, 11/15/48 (Call 05/15/48) | 473 | 583,825 | ||||||
Diageo Capital PLC | ||||||||
3.88%, 04/29/43 (Call 10/29/42)(a) | 635 | 722,325 | ||||||
5.88%, 09/30/36 | 525 | 725,804 | ||||||
Diageo Investment Corp. | ||||||||
4.25%, 05/11/42 | 810 | 954,221 | ||||||
7.45%, 04/15/35 | 11 | 16,771 | ||||||
Fomento Economico Mexicano SAB de CV, 4.38%, 05/10/43 | 330 | 373,931 | ||||||
Keurig Dr Pepper Inc. | ||||||||
4.42%, 12/15/46 (Call 06/15/46) | 525 | 567,825 | ||||||
4.50%, 11/15/45 (Call 05/15/45) | 375 | 415,845 |
Security | Par (000) | Value | ||||||
Beverages (continued) | ||||||||
4.99%, 05/25/38 (Call 11/25/37) | $ | 770 | $ | 906,836 | ||||
5.09%, 05/25/48 (Call 11/25/47) | 475 | 571,030 | ||||||
Molson Coors Brewing Co. | ||||||||
4.20%, 07/15/46 (Call 01/15/46)(a) | 1,362 | 1,345,985 | ||||||
5.00%, 05/01/42 | 1,120 | 1,219,347 | ||||||
PepsiCo Inc. | ||||||||
3.38%, 07/29/49 (Call 01/29/49) | 695 | 741,971 | ||||||
3.45%, 10/06/46 (Call 04/06/46) | 1,430 | 1,555,314 | ||||||
3.60%, 08/13/42(a) | 455 | 498,875 | ||||||
4.00%, 03/05/42 | 832 | 972,973 | ||||||
4.00%, 05/02/47 (Call 11/02/46)(a) | 1,120 | 1,327,725 | ||||||
4.25%, 10/22/44 (Call 04/22/44) | 715 | 846,063 | ||||||
4.45%, 04/14/46 (Call 10/14/45) | 1,439 | 1,816,050 | ||||||
4.60%, 07/17/45 (Call 01/17/45) | 200 | 253,003 | ||||||
Pernod Ricard SA, 5.50%, 01/15/42(a)(b) | 250 | 314,473 | ||||||
|
| |||||||
54,652,478 | ||||||||
Biotechnology — 1.4% | ||||||||
Amgen Inc. | ||||||||
4.40%, 05/01/45 (Call 11/01/44) | 2,610 | 2,936,253 | ||||||
4.56%, 06/15/48 (Call 12/15/47)(a) | 900 | 1,034,460 | ||||||
4.66%, 06/15/51 (Call 12/15/50) | 2,495 | 2,916,950 | ||||||
4.95%, 10/01/41 | 840 | 997,345 | ||||||
5.15%, 11/15/41 (Call 05/15/41) | 930 | 1,130,096 | ||||||
5.65%, 06/15/42 (Call 12/15/41) | 115 | 145,388 | ||||||
5.75%, 03/15/40(a) | 320 | 402,051 | ||||||
6.38%, 06/01/37(a) | 315 | 427,788 | ||||||
6.40%, 02/01/39 | 30 | 40,681 | ||||||
6.90%, 06/01/38 | 75 | 106,228 | ||||||
Baxalta Inc., 5.25%, 06/23/45 (Call 12/23/44)(a) | 205 | 264,602 | ||||||
Biogen Inc., 5.20%, 09/15/45 (Call 03/15/45) | 1,375 | 1,686,176 | ||||||
Celgene Corp. | ||||||||
4.35%, 11/15/47 (Call 05/15/47) | 585 | 682,509 | ||||||
4.55%, 02/20/48 (Call 08/20/47) | 795 | 966,122 | ||||||
4.63%, 05/15/44 (Call 11/15/43) | 360 | 434,688 | ||||||
5.00%, 08/15/45 (Call 02/15/45) | 974 | 1,240,251 | ||||||
5.25%, 08/15/43 | 370 | 470,913 | ||||||
5.70%, 10/15/40 | 250 | 321,116 | ||||||
Gilead Sciences Inc. | ||||||||
4.00%, 09/01/36 (Call 03/01/36) | 415 | 463,296 | ||||||
4.15%, 03/01/47 (Call 09/01/46)(a) | 945 | 1,050,153 | ||||||
4.50%, 02/01/45 (Call 08/01/44) | 1,520 | 1,747,954 | ||||||
4.60%, 09/01/35 (Call 03/01/35)(a) | 1,025 | 1,209,478 | ||||||
4.75%, 03/01/46 (Call 09/01/45) | 1,538 | 1,840,955 | ||||||
4.80%, 04/01/44 (Call 10/01/43) | 1,700 | 2,023,699 | ||||||
5.65%, 12/01/41 (Call 06/01/41) | 980 | 1,284,933 | ||||||
|
| |||||||
25,824,085 | ||||||||
Building Materials — 0.3% | ||||||||
CRH America Finance Inc. | ||||||||
4.40%, 05/09/47 (Call 11/09/46)(b) | 100 | 106,029 | ||||||
4.50%, 04/04/48 (Call 10/04/47)(b) | 600 | 653,213 | ||||||
Johnson Controls International PLC | ||||||||
4.50%, 02/15/47 (Call 08/15/46) | 470 | 510,337 | ||||||
4.63%, 07/02/44 (Call 01/02/44) | 577 | 623,481 | ||||||
4.95%, 07/02/64 (Call 01/02/64)(f) | 415 | 436,909 | ||||||
5.13%, 09/14/45 (Call 03/14/45) | 43 | 50,636 | ||||||
6.00%, 01/15/36 | 135 | 166,517 | ||||||
Martin Marietta Materials Inc., 4.25%, 12/15/47 (Call 06/15/47)(a) | 690 | 704,916 | ||||||
Masco Corp., 4.50%, 05/15/47 (Call 11/15/46) | 495 | 506,164 |
SCHEDULE OF INVESTMENTS | 31 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Building Materials (continued) | ||||||||
Owens Corning | $ | 952 | $ | 878,625 | ||||
4.40%, 01/30/48 (Call 07/30/47) | 175 | 163,580 | ||||||
7.00%, 12/01/36 | 124 | 159,584 | ||||||
Vulcan Materials Co. | 405 | 441,977 | ||||||
4.70%, 03/01/48 (Call 09/01/47)(a) | 605 | 677,648 | ||||||
|
| |||||||
6,079,616 | ||||||||
Chemicals — 1.7% | ||||||||
Albemarle Corp., 5.45%, 12/01/44 (Call 06/01/44) | 480 | 566,124 | ||||||
Braskem America Finance Co., | 200 | 236,219 | ||||||
Dow Chemical Co. (The) | 1,315 | 1,412,919 | ||||||
4.38%, 11/15/42 (Call 05/15/42) | 1,026 | 1,075,240 | ||||||
4.63%, 10/01/44 (Call 04/01/44) | 390 | 419,589 | ||||||
4.80%, 05/15/49 (Call 11/15/48)(b) | 695 | 772,956 | ||||||
5.25%, 11/15/41 (Call 05/15/41) | 1,209 | 1,406,473 | ||||||
5.55%, 11/30/48 (Call 05/30/48)(b) | 335 | 409,781 | ||||||
7.38%, 11/01/29 | 480 | 637,325 | ||||||
9.40%, 05/15/39 | 346 | 570,676 | ||||||
DuPont de Nemours Inc. | 1,700 | 2,039,128 | ||||||
5.42%, 11/15/48 (Call 05/15/48) | 1,680 | 2,090,320 | ||||||
Eastman Chemical Co. | 794 | 847,702 | ||||||
4.80%, 09/01/42 (Call 03/01/42) | 328 | 357,807 | ||||||
Ecolab Inc. | 175 | 184,726 | ||||||
3.95%, 12/01/47 (Call 06/01/47) | 655 | 762,112 | ||||||
5.50%, 12/08/41 | 193 | 257,985 | ||||||
FMC Corp., 4.50%, 10/01/49 (Call 04/01/49) | 275 | 293,804 | ||||||
International Flavors & Fragrances Inc. | 250 | 260,182 | ||||||
5.00%, 09/26/48 (Call 03/26/48) | 220 | 255,149 | ||||||
Lubrizol Corp. (The), 6.50%, 10/01/34 | 350 | 496,818 | ||||||
LYB International Finance BV | 1,160 | 1,281,623 | ||||||
5.25%, 07/15/43 | 625 | 717,806 | ||||||
LYB International Finance III LLC, | 165 | 165,855 | ||||||
LyondellBasell Industries NV, 4.63%, 02/26/55 (Call 08/26/54) | 1,028 | 1,075,357 | ||||||
Methanex Corp., 5.65%, 12/01/44 (Call 06/01/44) | 415 | 394,265 | ||||||
Mosaic Co. (The) | 100 | 104,693 | ||||||
5.45%, 11/15/33 (Call 05/15/33) | 393 | 450,918 | ||||||
5.63%, 11/15/43 (Call 05/15/43)(a) | 805 | 926,429 | ||||||
Nutrien Ltd. | 962 | 1,005,727 | ||||||
4.90%, 06/01/43 (Call 12/01/42) | 605 | 674,467 | ||||||
5.00%, 04/01/49 (Call 10/01/48) | 500 | 590,694 | ||||||
5.25%, 01/15/45 (Call 07/15/44) | 224 | 264,267 | ||||||
5.63%, 12/01/40 | 365 | 437,774 | ||||||
5.88%, 12/01/36 | 191 | 231,202 | ||||||
6.13%, 01/15/41 (Call 07/15/40) | 575 | 714,338 | ||||||
7.13%, 05/23/36 | 18 | 23,916 | ||||||
OCP SA, 6.88%, 04/25/44(b) | 200 | 249,375 | ||||||
Orbia Advance Corp. SAB de CV, 5.88%, 09/17/44(b) | 900 | 946,800 | ||||||
Praxair Inc., 3.55%, 11/07/42 (Call 05/07/42) | 595 | 632,797 |
Security | Par (000) | Value | ||||||
Chemicals (continued) | ||||||||
RPM International Inc., 4.25%, 01/15/48 (Call 07/15/47) | $ | 510 | $ | 501,741 | ||||
Sherwin-Williams Co. (The) | 365 | 371,001 | ||||||
4.00%, 12/15/42 (Call 06/15/42) | 540 | 558,460 | ||||||
4.50%, 06/01/47 (Call 12/01/46) | 1,370 | 1,536,711 | ||||||
4.55%, 08/01/45 (Call 02/01/45) | 95 | 108,467 | ||||||
Syngenta Finance NV, 5.68%, 04/24/48 (Call 10/24/47)(b) | 970 | 1,012,168 | ||||||
Westlake Chemical Corp. | 480 | 481,599 | ||||||
5.00%, 08/15/46 (Call 02/15/46) | 700 | 755,801 | ||||||
|
| |||||||
31,567,286 | ||||||||
Commercial Services — 1.0% | ||||||||
American University (The), Series 2019, 3.67%, 04/01/49 | 500 | 549,756 | ||||||
California Institute of Technology | 12 | 15,216 | ||||||
4.70%, 11/01/2111 | 100 | 129,663 | ||||||
Cleveland Clinic Foundation (The), 4.86%, 01/01/2114(a) | 200 | 258,583 | ||||||
DP World PLC | 1,250 | 1,446,875 | ||||||
6.85%, 07/02/37(b) | 1,360 | 1,787,550 | ||||||
Equifax Inc., 7.00%, 07/01/37 | 180 | 235,792 | ||||||
ERAC USA Finance LLC | 50 | 53,551 | ||||||
7.00%, 10/15/37(a)(b) | 1,915 | 2,714,793 | ||||||
George Washington University (The) | 16 | 20,880 | ||||||
Series 2018, 4.13%, 09/15/48 (Call 03/15/48) | 840 | 1,002,090 | ||||||
Global Payments Inc., 4.15%, 08/15/49 (Call 02/15/49) | 565 | 589,411 | ||||||
Johns Hopkins University, Series 2013, 4.08%, 07/01/53 | 36 | 42,917 | ||||||
Leland Stanford Junior University (The), 3.65%, 05/01/48 (Call 11/01/47) | 15 | 17,154 | ||||||
Massachusetts Institute of Technology | 75 | 86,846 | ||||||
3.96%, 07/01/38 | 59 | 68,245 | ||||||
4.68%, 07/01/2114 | 290 | 394,272 | ||||||
5.60%, 07/01/2111 | 440 | 717,157 | ||||||
Moody’s Corp., 5.25%, 07/15/44 | 450 | 576,378 | ||||||
Northwestern University | 355 | 453,508 | ||||||
Series 2017, 3.66%, 12/01/57 (Call 06/01/57) | 40 | 46,154 | ||||||
President and Fellows of Harvard College | 425 | 453,449 | ||||||
3.30%, 07/15/56 (Call 01/15/56) | 335 | 365,021 | ||||||
Princeton University, 5.70%, 03/01/39 | 425 | 604,521 | ||||||
S&P Global Inc. | 225 | 278,821 | ||||||
6.55%, 11/15/37 | 191 | 277,673 | ||||||
Trustees of Boston College, 3.13%, 07/01/52 | 500 | 504,757 | ||||||
Trustees of Dartmouth College, 3.47%, 06/01/46 | 260 | 277,333 | ||||||
Trustees of the University of Pennsylvania (The), 3.61%, 12/31/99 (Call 08/15/2118) | 500 | 543,230 | ||||||
Tufts University, Series 2012, 5.02%, 04/15/2112 | 100 | 127,074 | ||||||
University of Notre Dame du Lac | ||||||||
Series 2015, 3.44%, 02/15/45 | 139 | 151,667 | ||||||
Series 2017, 3.39%, 02/15/48 (Call 08/15/47) | 655 | 717,247 | ||||||
University of Southern California | 1,541 | 1,591,800 | ||||||
5.25%, 10/01/2111 | 250 | 368,972 | ||||||
Verisk Analytics Inc., 5.50%, 06/15/45 (Call 12/15/44) | 186 | 232,678 | ||||||
Wesleyan University, | 125 | 145,901 |
32 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Commercial Services (continued) | ||||||||
William Marsh Rice University | $ | 331 | $ | 363,109 | ||||
3.77%, 05/15/55 | 125 | 142,951 | ||||||
|
| |||||||
18,352,995 | ||||||||
Computers — 1.8% | ||||||||
Apple Inc. | 2,294 | 2,432,987 | ||||||
3.75%, 09/12/47 (Call 03/12/47) | 710 | 788,898 | ||||||
3.75%, 11/13/47 (Call 05/13/47) | 960 | 1,082,079 | ||||||
3.85%, 05/04/43 | 1,870 | 2,099,059 | ||||||
3.85%, 08/04/46 (Call 02/04/46)(a) | 2,020 | 2,278,388 | ||||||
4.25%, 02/09/47 (Call 08/09/46) | 1,150 | 1,377,765 | ||||||
4.38%, 05/13/45 | 1,970 | 2,384,068 | ||||||
4.45%, 05/06/44 | 595 | 725,456 | ||||||
4.50%, 02/23/36 (Call 08/23/35) | 1,240 | 1,508,154 | ||||||
4.65%, 02/23/46 (Call 08/23/45) | 1,899 | 2,379,914 | ||||||
Dell International LLC/EMC Corp. | 1,426 | 1,833,757 | ||||||
8.35%, 07/15/46 (Call 01/15/46)(b) | 1,340 | 1,784,310 | ||||||
Hewlett Packard Enterprise Co. | 765 | 919,629 | ||||||
6.35%, 10/15/45 (Call 04/15/45) | 1,075 | 1,277,413 | ||||||
HP Inc., 6.00%, 09/15/41 | 1,219 | 1,404,956 | ||||||
International Business Machines Corp. | 1,575 | 1,708,991 | ||||||
4.15%, 05/15/39 | 2,460 | 2,796,259 | ||||||
4.25%, 05/15/49 | 1,150 | 1,310,326 | ||||||
4.70%, 02/19/46(a) | 745 | 893,592 | ||||||
5.60%, 11/30/39 | 515 | 677,440 | ||||||
5.88%, 11/29/32 | 356 | 470,522 | ||||||
7.13%, 12/01/96(a) | 95 | 145,557 | ||||||
Seagate HDD Cayman, 5.75%, 12/01/34 (Call 06/01/34) | 700 | 719,624 | ||||||
|
| |||||||
32,999,144 | ||||||||
Cosmetics & Personal Care — 0.3% | ||||||||
Colgate-Palmolive Co. | 270 | 317,088 | ||||||
4.00%, 08/15/45 | 330 | 394,114 | ||||||
Estee Lauder Companies Inc. (The) | 50 | 54,361 | ||||||
4.15%, 03/15/47 (Call 09/15/46) | 200 | 238,121 | ||||||
4.38%, 06/15/45 (Call 12/15/44) | 535 | 652,488 | ||||||
6.00%, 05/15/37 | 255 | 353,400 | ||||||
Procter & Gamble Co. (The) | 525 | 600,518 | ||||||
5.50%, 02/01/34(a) | 1,225 | 1,674,315 | ||||||
5.80%, 08/15/34 | 75 | 106,323 | ||||||
Unilever Capital Corp., 5.90%, 11/15/32 | 1,460 | 1,986,858 | ||||||
|
| |||||||
6,377,586 | ||||||||
Distribution & Wholesale — 0.1% | ||||||||
WW Grainger Inc. | 405 | 419,896 | ||||||
4.20%, 05/15/47 (Call 11/15/46) | 465 | 517,977 | ||||||
4.60%, 06/15/45 (Call 12/15/44) | 880 | 1,050,225 | ||||||
|
| |||||||
1,988,098 | ||||||||
Diversified Financial Services — 1.6% | ||||||||
American Express Co., 4.05%, 12/03/42 | 1,315 | 1,531,379 | ||||||
Blackstone Holdings Finance Co. LLC | 800 | 804,551 | ||||||
4.00%, 10/02/47 (Call 04/02/47)(a) | 225 | 241,708 |
Security | Par (000) | Value | ||||||
Diversified Financial Services (continued) | ||||||||
4.45%, 07/15/45(b) | $ | 400 | $ | 458,695 | ||||
5.00%, 06/15/44(b) | 61 | 74,645 | ||||||
Brookfield Finance Inc., 4.70%, 09/20/47 (Call 03/20/47) | 1,165 | 1,307,748 | ||||||
Carlyle Holdings II Finance LLC, 5.63%, 03/30/43(b) | 215 | 249,301 | ||||||
CME Group Inc. | 695 | 838,212 | ||||||
5.30%, 09/15/43 (Call 03/15/43) | 505 | 687,570 | ||||||
Credit Suisse USA Inc., 7.13%, 07/15/32 | 698 | 1,009,817 | ||||||
FMR LLC | 500 | 634,147 | ||||||
6.50%, 12/14/40(b) | 500 | 728,124 | ||||||
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35 | 7,875 | 8,311,650 | ||||||
Invesco Finance PLC, 5.38%, 11/30/43 | 326 | 394,149 | ||||||
Jefferies Financial Group Inc., | 155 | 177,400 | ||||||
Jefferies Group LLC | 345 | 399,844 | ||||||
6.50%, 01/20/43 | 310 | 365,671 | ||||||
Jefferies Group LLC/Jefferies Group Capital Finance Inc., 4.15%, 01/23/30 | 1,195 | 1,208,618 | ||||||
KKR Group Finance Co. II LLC, | 550 | 674,882 | ||||||
Legg Mason Inc., 5.63%, 01/15/44 | 470 | 530,136 | ||||||
Mastercard Inc. | 542 | 612,280 | ||||||
3.80%, 11/21/46 (Call 05/21/46) | 400 | 460,239 | ||||||
3.95%, 02/26/48 (Call 08/26/47) | 700 | 825,816 | ||||||
Raymond James Financial Inc., 4.95%, 07/15/46 | 970 | 1,175,212 | ||||||
Visa Inc. | 1,104 | 1,243,699 | ||||||
4.15%, 12/14/35 (Call 06/14/35) | 1,709 | 2,056,585 | ||||||
4.30%, 12/14/45 (Call 06/14/45) | 2,190 | 2,714,852 | ||||||
Western Union Co. (The) | 210 | 239,286 | ||||||
6.20%, 06/21/40(a) | 340 | 384,663 | ||||||
|
| |||||||
30,340,879 | ||||||||
Electric — 11.9% | ||||||||
Abu Dhabi National Energy Co. PJSC | 800 | 906,250 | ||||||
6.50%, 10/27/36(b) | 1,000 | 1,348,750 | ||||||
Acwa Power Management And Investments One Ltd., | 225 | 243,633 | ||||||
AEP Texas Inc. | 50 | 54,130 | ||||||
Series G, 4.15%, 05/01/49 (Call 11/01/48)(a) | 245 | 285,521 | ||||||
AEP Transmission Co. LLC | 425 | 467,711 | ||||||
3.80%, 06/15/49 (Call 12/15/48) | 245 | 271,865 | ||||||
4.00%, 12/01/46 (Call 06/01/46) | 465 | 532,639 | ||||||
4.25%, 09/15/48 (Call 03/15/48) | 320 | 379,752 | ||||||
Alabama Power Co. | 575 | 618,857 | ||||||
3.85%, 12/01/42 | 100 | 108,189 | ||||||
4.10%, 01/15/42 | 85 | 92,616 | ||||||
4.15%, 08/15/44 (Call 02/15/44) | 302 | 345,248 | ||||||
4.30%, 01/02/46 (Call 07/02/45) | 425 | 498,348 | ||||||
5.70%, 02/15/33(a) | 50 | 64,890 | ||||||
6.00%, 03/01/39 | 295 | 411,723 | ||||||
6.13%, 05/15/38 | 410 | 570,408 |
SCHEDULE OF INVESTMENTS | 33 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Series A, 4.30%, 07/15/48 (Call 01/15/48)(a) | $ | 135 | $ | 160,618 | ||||
Series B, 3.70%, 12/01/47 (Call 06/01/47) | 485 | 521,105 | ||||||
Ameren Illinois Co. | ||||||||
3.70%, 12/01/47 (Call 06/01/47)(a) | 640 | 707,833 | ||||||
4.15%, 03/15/46 (Call 09/15/45) | 385 | 453,980 | ||||||
4.30%, 07/01/44 (Call 01/01/44) | 200 | 228,520 | ||||||
4.50%, 03/15/49 (Call 09/15/48) | 253 | 316,511 | ||||||
4.80%, 12/15/43 (Call 06/15/43) | 250 | 305,406 | ||||||
American Transmission Systems Inc., 5.00%, 09/01/44 (Call 03/01/44) | 150 | 192,685 | ||||||
Appalachian Power Co. | ||||||||
4.40%, 05/15/44 (Call 11/15/43) | 331 | 383,694 | ||||||
4.45%, 06/01/45 (Call 12/01/44) | 280 | 330,780 | ||||||
7.00%, 04/01/38(a) | 550 | 790,601 | ||||||
Series L, 5.80%, 10/01/35 | 197 | 249,236 | ||||||
Series P, 6.70%, 08/15/37 | 30 | 41,308 | ||||||
Series Y, 4.50%, 03/01/49 (Call 09/01/48) | 420 | 507,893 | ||||||
Arizona Public Service Co. | ||||||||
3.75%, 05/15/46 (Call 11/15/45) | 800 | 859,097 | ||||||
4.25%, 03/01/49 (Call 09/01/48) | 610 | 712,254 | ||||||
4.35%, 11/15/45 (Call 05/15/45) | 60 | 70,722 | ||||||
4.50%, 04/01/42 (Call 10/01/41) | 401 | 470,039 | ||||||
5.05%, 09/01/41 (Call 03/01/41) | 160 | 197,762 | ||||||
Avista Corp., 4.35%, 06/01/48 (Call 12/01/47) | 100 | 118,409 | ||||||
Baltimore Gas & Electric Co. | ||||||||
3.20%, 09/15/49 (Call 03/15/49) | 160 | 159,003 | ||||||
3.50%, 08/15/46 (Call 02/15/46) | 645 | 669,031 | ||||||
3.75%, 08/15/47 (Call 02/15/47) | 50 | 54,011 | ||||||
Berkshire Hathaway Energy Co. | ||||||||
3.80%, 07/15/48 (Call 01/15/48) | 800 | 872,903 | ||||||
4.45%, 01/15/49 (Call 07/15/48) | 801 | 960,843 | ||||||
4.50%, 02/01/45 (Call 08/01/44) | 625 | 746,481 | ||||||
5.15%, 11/15/43 (Call 05/15/43) | 671 | 853,977 | ||||||
5.95%, 05/15/37 | 1,105 | 1,523,583 | ||||||
6.13%, 04/01/36(a) | 1,877 | 2,609,175 | ||||||
Black Hills Corp. | ||||||||
3.88%, 10/15/49 (Call 04/15/49) | 250 | 255,104 | ||||||
4.20%, 09/15/46 (Call 03/15/46) | 200 | 213,399 | ||||||
4.35%, 05/01/33 (Call 02/01/33) | 680 | 763,985 | ||||||
Celeo Redes Operacion Chile SA, 5.20%, 06/22/47 | 196 | 215,970 | ||||||
CenterPoint Energy Houston Electric LLC | ||||||||
3.55%, 08/01/42 (Call 02/01/42) | 845 | 903,859 | ||||||
3.95%, 03/01/48 (Call 09/01/47) | 410 | 475,241 | ||||||
4.50%, 04/01/44 (Call 10/01/43) | 315 | 385,269 | ||||||
Series AC, 4.25%, 02/01/49 (Call 08/01/48) | 700 | 849,239 | ||||||
CenterPoint Energy Inc., 3.70%, 09/01/49 (Call 03/01/49) | 300 | 306,583 | ||||||
Cleco Corporate Holdings LLC, 4.97%, 05/01/46 | ||||||||
(Call 11/01/45) | 345 | 393,166 | ||||||
Cleveland Electric Illuminating Co. (The) | ||||||||
4.55%, 11/15/30 (Call 08/15/30)(b) | 100 | 114,099 | ||||||
5.95%, 12/15/36 | 430 | 550,336 | ||||||
CMS Energy Corp. | ||||||||
4.70%, 03/31/43 (Call 09/30/42) | 950 | 1,089,587 | ||||||
4.88%, 03/01/44 (Call 09/01/43) | 546 | 659,374 | ||||||
Cometa Energia SA de CV, 6.38%, 04/24/35 | ||||||||
(Call 01/24/35)(a)(b) | 387 | 417,881 | ||||||
Comision Federal de Electricidad | ||||||||
5.75%, 02/14/42(b) | 800 | 871,500 | ||||||
6.13%, 06/16/45(b) | 400 | 458,625 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Commonwealth Edison Co. | ||||||||
3.65%, 06/15/46 (Call 12/15/45) | $ | 380 | $ | 414,733 | ||||
3.70%, 03/01/45 (Call 09/01/44)(a) | 275 | 299,153 | ||||||
3.80%, 10/01/42 (Call 04/01/42) | 350 | 383,538 | ||||||
4.00%, 03/01/48 (Call 09/01/47) | 590 | 679,884 | ||||||
4.00%, 03/01/49 (Call 09/01/48) | 1,085 | 1,259,998 | ||||||
4.35%, 11/15/45 (Call 05/15/45) | 350 | 418,569 | ||||||
4.60%, 08/15/43 (Call 02/15/43) | 150 | 180,883 | ||||||
4.70%, 01/15/44 (Call 07/15/43) | 285 | 350,489 | ||||||
Series 123, 3.75%, 08/15/47 (Call 02/15/47) | 300 | 332,919 | ||||||
Connecticut Light & Power Co. (The) | ||||||||
4.00%, 04/01/48 (Call 10/01/47) | 525 | 617,179 | ||||||
4.30%, 04/15/44 (Call 10/15/43) | 400 | 483,826 | ||||||
Consolidated Edison Co. of New York Inc. | ||||||||
3.85%, 06/15/46 (Call 12/15/45) | 1,170 | 1,280,292 | ||||||
3.95%, 03/01/43 (Call 09/01/42) | 425 | 466,841 | ||||||
4.45%, 03/15/44 (Call 09/15/43) | 629 | 743,068 | ||||||
4.50%, 12/01/45 (Call 06/01/45) | 572 | 681,898 | ||||||
4.50%, 05/15/58 (Call 11/15/57) | 325 | 387,908 | ||||||
4.63%, 12/01/54 (Call 06/01/54) | 798 | 958,062 | ||||||
5.70%, 06/15/40 | 370 | 495,916 | ||||||
Series05-A, 5.30%, 03/01/35 | 125 | 154,564 | ||||||
Series06-A, 5.85%, 03/15/36 | 125 | 164,661 | ||||||
Series06-B, 6.20%, 06/15/36 | 290 | 394,412 | ||||||
Series06-E, 5.70%, 12/01/36(a) | 90 | 116,929 | ||||||
Series07-A, 6.30%, 08/15/37 | 125 | 174,262 | ||||||
Series08-B, 6.75%, 04/01/38 | 635 | 924,972 | ||||||
Series09-C, 5.50%, 12/01/39 | 440 | 576,705 | ||||||
Series12-A, 4.20%, 03/15/42 | 58 | 65,561 | ||||||
Series 2017, 3.88%, 06/15/47 (Call 12/15/46) | 500 | 548,380 | ||||||
Series A, 4.13%, 05/15/49 (Call 11/15/48)(a) | 585 | 669,272 | ||||||
Series C, 4.30%, 12/01/56 (Call 06/01/56) | 360 | 408,069 | ||||||
Series E, 4.65%, 12/01/48 (Call 06/01/48) | 420 | 517,844 | ||||||
Consumers Energy Co. | ||||||||
3.25%, 08/15/46 (Call 02/15/46) | 450 | 462,575 | ||||||
3.95%, 05/15/43 (Call 11/15/42) | 245 | 278,692 | ||||||
3.95%, 07/15/47 (Call 01/15/47) | 250 | 289,750 | ||||||
4.05%, 05/15/48 (Call 11/15/47) | 225 | 264,339 | ||||||
4.35%, 04/15/49 (Call 10/15/48) | 335 | 414,571 | ||||||
Dayton Power & Light Co. (The), 3.95%, 06/15/49 | ||||||||
(Call 12/15/48)(b) | 530 | 581,164 | ||||||
Delmarva Power & Light Co., 4.15%, 05/15/45 | ||||||||
(Call 11/15/44) | 250 | 281,060 | ||||||
Dominion Energy Inc. | ||||||||
4.70%, 12/01/44 (Call 06/01/44) | 621 | 732,554 | ||||||
7.00%, 06/15/38 | 280 | 394,221 | ||||||
Series A, 4.60%, 03/15/49 (Call 09/15/48) | 535 | 628,149 | ||||||
Series B, 5.95%, 06/15/35 | 490 | 627,765 | ||||||
Series C, 4.05%, 09/15/42 (Call 03/15/42) | 350 | 376,336 | ||||||
Series C, 4.90%, 08/01/41 (Call 02/01/41) | 592 | 700,202 | ||||||
Series E, 6.30%, 03/15/33 | 391 | 519,419 | ||||||
Series F, 5.25%, 08/01/33 | 445 | 546,252 | ||||||
Dominion Energy South Carolina Inc. | ||||||||
4.60%, 06/15/43 (Call 12/15/42) | 381 | 461,413 | ||||||
5.10%, 06/01/65 (Call 12/01/64) | 325 | 432,187 | ||||||
5.30%, 05/15/33 | 155 | 197,137 | ||||||
5.45%, 02/01/41 (Call 08/01/40) | 380 | 495,584 | ||||||
6.05%, 01/15/38 | 313 | 427,758 | ||||||
6.63%, 02/01/32 | 375 | �� | 511,478 |
34 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
DTE Electric Co. | ||||||||
3.70%, 03/15/45 (Call 09/15/44)(a) | $ | 350 | $ | 388,580 | ||||
3.70%, 06/01/46 (Call 12/01/45) | 135 | 147,777 | ||||||
3.75%, 08/15/47 (Call 02/15/47) | 175 | 198,247 | ||||||
3.95%, 03/01/49 (Call 09/01/48) | 1,280 | 1,479,981 | ||||||
4.30%, 07/01/44 (Call 01/01/44) | 298 | 356,145 | ||||||
Series A, 4.00%, 04/01/43 (Call 10/01/42) | 225 | 259,433 | ||||||
Series A, 4.05%, 05/15/48 (Call 11/15/47) | 580 | 674,748 | ||||||
DTE Energy Co., 6.38%, 04/15/33(a) | 235 | 314,424 | ||||||
Duke Energy Carolinas LLC | ||||||||
3.20%, 08/15/49 (Call 02/15/49)(a) | 505 | 508,467 | ||||||
3.70%, 12/01/47 (Call 06/01/47) | 340 | 372,149 | ||||||
3.75%, 06/01/45 (Call 12/01/44) | 240 | 263,206 | ||||||
3.88%, 03/15/46 (Call 09/15/45) | 390 | 439,056 | ||||||
3.95%, 03/15/48 (Call 09/15/47) | 660 | 752,930 | ||||||
4.00%, 09/30/42 (Call 03/30/42) | 325 | 362,396 | ||||||
4.25%, 12/15/41 (Call 06/15/41) | 415 | 479,374 | ||||||
5.30%, 02/15/40 | 440 | 574,525 | ||||||
6.00%, 01/15/38 | 187 | 256,785 | ||||||
6.05%, 04/15/38 | 335 | 468,487 | ||||||
6.10%, 06/01/37 | 285 | 390,465 | ||||||
6.45%, 10/15/32 | 441 | 611,698 | ||||||
Duke Energy Corp. | ||||||||
3.75%, 09/01/46 (Call 03/01/46) | 1,603 | 1,659,244 | ||||||
4.20%, 06/15/49 (Call 12/15/48) | 990 | 1,102,630 | ||||||
4.80%, 12/15/45 (Call 06/15/45) | 491 | 591,137 | ||||||
Duke Energy Florida LLC | ||||||||
3.40%, 10/01/46 (Call 04/01/46) | 495 | 509,591 | ||||||
3.85%, 11/15/42 (Call 05/15/42) | 305 | 335,722 | ||||||
4.20%, 07/15/48 (Call 01/15/48) | 25 | 28,911 | ||||||
5.65%, 04/01/40 | 150 | 201,524 | ||||||
6.35%, 09/15/37 | 800 | 1,141,432 | ||||||
6.40%, 06/15/38(a) | 1,160 | 1,697,071 | ||||||
Duke Energy Indiana LLC | ||||||||
3.75%, 05/15/46 (Call 11/15/45) | 145 | 155,764 | ||||||
6.12%, 10/15/35 | 250 | 335,787 | ||||||
6.35%, 08/15/38 | 236 | 339,227 | ||||||
6.45%, 04/01/39 | 150 | 218,075 | ||||||
Series UUU, 4.20%, 03/15/42 (Call 09/15/41) | 125 | 141,456 | ||||||
Series WWW, 4.90%, 07/15/43 (Call 01/15/43) | 190 | 237,475 | ||||||
Series YYY, 3.25%, 10/01/49 (Call 04/01/49) | 250 | 251,566 | ||||||
Duke Energy Ohio Inc. | ||||||||
3.70%, 06/15/46 (Call 12/15/45) | 10 | 10,811 | ||||||
4.30%, 02/01/49 (Call 08/01/48) | 835 | 988,321 | ||||||
Duke Energy Progress LLC | ||||||||
3.60%, 09/15/47 (Call 03/15/47) | 470 | 504,103 | ||||||
3.70%, 10/15/46 (Call 04/15/46) | 620 | 673,861 | ||||||
4.10%, 05/15/42 (Call 11/15/41)(a) | 410 | 467,138 | ||||||
4.10%, 03/15/43 (Call 09/15/42) | 371 | 420,087 | ||||||
4.15%, 12/01/44 (Call 06/01/44) | 355 | 406,583 | ||||||
4.20%, 08/15/45 (Call 02/15/45) | 320 | 370,666 | ||||||
4.38%, 03/30/44 (Call 09/30/43)(a) | 150 | 177,228 | ||||||
6.30%, 04/01/38 | 275 | 386,544 | ||||||
E.ON International Finance BV, 6.65%, 04/30/38(b) | 539 | 739,615 | ||||||
El Paso Electric Co. | ||||||||
5.00%, 12/01/44 (Call 06/01/44) | 100 | 119,786 | ||||||
6.00%, 05/15/35 | 400 | 503,210 | ||||||
Electricite de France SA | ||||||||
4.75%, 10/13/35 (Call 04/13/35)(a)(b) | 840 | 954,214 | ||||||
4.88%, 09/21/38 (Call 03/21/38)(a)(b) | 1,175 | 1,354,249 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
4.88%, 01/22/44(a)(b) | $ | 1,175 | $ | 1,355,484 | ||||
4.95%, 10/13/45 (Call 04/13/45)(b) | 500 | 585,326 | ||||||
5.00%, 09/21/48 (Call 03/21/48)(b) | 1,600 | 1,914,766 | ||||||
5.25%, 10/13/55 (Call 04/13/55)(b) | 230 | 278,718 | ||||||
5.60%, 01/27/40(a)(b) | 625 | 782,979 | ||||||
6.00%, 01/22/2114(b) | 265 | 317,049 | ||||||
Emera U.S. Finance LP, 4.75%, 06/15/46 (Call 12/15/45)(a) | 1,270 | 1,490,783 | ||||||
Emirates Semb Corp. Water & Power Co. PJSC, 4.45%, 08/01/35 | 250 | 274,141 | ||||||
Empresa de Transmision Electrica SA, 5.13%, 05/02/49(b) | 400 | 457,125 | ||||||
Enel Finance International NV | ||||||||
4.75%, 05/25/47(a)(b) | 2,420 | 2,750,276 | ||||||
6.00%, 10/07/39(a)(b) | 600 | 757,131 | ||||||
Entergy Arkansas LLC | ||||||||
4.20%, 04/01/49 (Call 10/01/48) | 140 | 165,703 | ||||||
4.95%, 12/15/44 (Call 12/15/24) | 20 | 21,722 | ||||||
Entergy Louisiana LLC | ||||||||
3.05%, 06/01/31 (Call 03/01/31) | 370 | 383,779 | ||||||
4.00%, 03/15/33 (Call 12/15/32)(a) | 1,005 | 1,153,395 | ||||||
4.20%, 09/01/48 (Call 03/01/48) | 925 | 1,082,365 | ||||||
4.20%, 04/01/50 (Call 10/01/49) | 225 | 265,701 | ||||||
4.95%, 01/15/45 (Call 01/15/25) | 100 | 107,735 | ||||||
Entergy Mississippi LLC, 3.85%, 06/01/49 (Call 12/01/48) | 300 | 336,075 | ||||||
Entergy Texas Inc., 3.55%, 09/30/49 (Call 03/30/49) | 100 | 103,415 | ||||||
Evergy Metro Inc. | ||||||||
4.20%, 06/15/47 (Call 12/15/46) | 105 | 122,038 | ||||||
4.20%, 03/15/48 (Call 09/15/47) | 260 | 302,949 | ||||||
5.30%, 10/01/41 (Call 04/01/41) | 314 | 397,862 | ||||||
Series 2019, 4.13%, 04/01/49 (Call 10/01/48) | 300 | 346,472 | ||||||
Exelon Corp. | ||||||||
4.45%, 04/15/46 (Call 10/15/45) | 780 | 884,956 | ||||||
4.95%, 06/15/35 (Call 12/15/34) | 310 | 360,423 | ||||||
5.10%, 06/15/45 (Call 12/15/44) | 941 | 1,141,517 | ||||||
5.63%, 06/15/35 | 600 | 749,914 | ||||||
7.60%, 04/01/32 | 180 | 248,953 | ||||||
Exelon Generation Co. LLC | ||||||||
5.60%, 06/15/42 (Call 12/15/41) | 800 | 936,743 | ||||||
5.75%, 10/01/41 (Call 04/01/41) | 360 | 423,162 | ||||||
6.25%, 10/01/39 | 913 | 1,142,264 | ||||||
FirstEnergy Corp. | ||||||||
Series C, 4.85%, 07/15/47 (Call 01/15/47) | 1,030 | 1,236,894 | ||||||
Series C, 7.38%, 11/15/31 | 1,436 | 2,040,709 | ||||||
FirstEnergy Transmission LLC, 4.55%, 04/01/49 (Call 10/01/48)(b) | 290 | 340,737 | ||||||
Florida Power & Light Co. | ||||||||
3.15%, 10/01/49 (Call 04/01/49) | 335 | 341,555 | ||||||
3.70%, 12/01/47 (Call 06/01/47) | 745 | 829,427 | ||||||
3.80%, 12/15/42 (Call 06/15/42) | 300 | 336,097 | ||||||
3.95%, 03/01/48 (Call 09/01/47) | 820 | 954,370 | ||||||
3.99%, 03/01/49 (Call 09/01/48) | 1,345 | 1,579,476 | ||||||
4.05%, 06/01/42 (Call 12/01/41) | 660 | 763,078 | ||||||
4.05%, 10/01/44 (Call 04/01/44) | 305 | 354,549 | ||||||
4.13%, 02/01/42 (Call 08/01/41) | 310 | 362,120 | ||||||
4.13%, 06/01/48 (Call 12/01/47) | 717 | 855,815 | ||||||
4.95%, 06/01/35 | 200 | 244,771 | ||||||
5.13%, 06/01/41 (Call 12/01/40) | 50 | 63,650 | ||||||
5.25%, 02/01/41 (Call 08/01/40) | 200 | 262,697 | ||||||
5.63%, 04/01/34 | 15 | 19,988 | ||||||
5.65%, 02/01/37 | 146 | 196,897 |
SCHEDULE OF INVESTMENTS | 35 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
5.69%, 03/01/40 | $ | 149 | $ | 204,145 | ||||
5.95%, 10/01/33 | 15 | 20,223 | ||||||
5.95%, 02/01/38 | 820 | 1,147,413 | ||||||
5.96%, 04/01/39 | 100 | 141,405 | ||||||
Georgia Power Co. | 1,370 | 1,504,850 | ||||||
4.30%, 03/15/43 | 296 | 325,093 | ||||||
5.40%, 06/01/40 | 75 | 89,593 | ||||||
Series10-C, 4.75%, 09/01/40 | 388 | 449,129 | ||||||
Iberdrola International BV, 6.75%, 07/15/36 | 230 | 318,619 | ||||||
Indiana Michigan Power Co. | 295 | 348,732 | ||||||
6.05%, 03/15/37 | 105 | 143,880 | ||||||
Series K, 4.55%, 03/15/46 (Call 09/15/45) | 270 | 329,757 | ||||||
Series L, 3.75%, 07/01/47 (Call 01/01/47) | 240 | 258,751 | ||||||
Infraestructura Energetica Nova SAB de CV, 4.88%, 01/14/48 | 200 | 190,688 | ||||||
Interstate Power & Light Co. | 460 | 466,582 | ||||||
3.70%, 09/15/46 (Call 03/15/46) | 435 | 455,780 | ||||||
4.70%, 10/15/43 (Call 04/15/43) | 143 | 167,813 | ||||||
6.25%, 07/15/39 | 80 | 108,076 | ||||||
ITC Holdings Corp., 5.30%, 07/01/43 (Call 01/01/43) | 75 | 94,023 | ||||||
Kentucky Utilities Co. | 405 | 481,227 | ||||||
5.13%, 11/01/40 (Call 05/01/40) | 576 | 729,059 | ||||||
Series 1, 4.65%, 11/15/43 (Call 05/15/43) | 50 | 59,671 | ||||||
LLPL Capital Pte Ltd., 6.88%, 02/04/39 | 198 | 230,755 | ||||||
Louisville Gas & Electric Co., 4.25%, 04/01/49 (Call 10/01/48) | 350 | 412,973 | ||||||
Massachusetts Electric Co., 5.90%, 11/15/39(a)(b) | 50 | 68,127 | ||||||
MidAmerican Energy Co. | 250 | 256,834 | ||||||
3.65%, 08/01/48 (Call 02/01/48) | 530 | 588,492 | ||||||
3.95%, 08/01/47 (Call 02/01/47) | 95 | 109,771 | ||||||
4.25%, 05/01/46 (Call 11/01/45) | 236 | 281,141 | ||||||
4.25%, 07/15/49 (Call 01/15/49) | 791 | 971,857 | ||||||
4.40%, 10/15/44 (Call 04/15/44) | 450 | 545,031 | ||||||
4.80%, 09/15/43 (Call 03/15/43) | 305 | 384,756 | ||||||
5.75%, 11/01/35 | 56 | 73,427 | ||||||
5.80%, 10/15/36 | 55 | 73,647 | ||||||
6.75%, 12/30/31 | 211 | 295,789 | ||||||
Minejesa Capital BV | 500 | 514,375 | ||||||
5.63%, 08/10/37(a)(b) | �� | 500 | 542,031 | |||||
Mississippi Power Co., Series12-A, 4.25%, 03/15/42 | 425 | 458,583 | ||||||
Monongahela Power Co., 5.40%, 12/15/43 (Call 06/15/43)(b) | 760 | 1,011,135 | ||||||
Narragansett Electric Co. (The), 4.17%, 12/10/42(b) | 50 | 54,248 | ||||||
National Grid USA, 5.80%, 04/01/35 | 510 | 635,779 | ||||||
National Rural Utilities Cooperative Finance Corp. | 280 | 321,312 | ||||||
4.30%, 03/15/49 (Call 09/15/48) | 630 | 756,632 | ||||||
4.40%, 11/01/48 (Call 05/01/48) | 200 | 243,925 | ||||||
Series C, 8.00%, 03/01/32 | 496 | 744,559 | ||||||
Nevada Power Co. | 25 | 31,551 | ||||||
Series N, 6.65%, 04/01/36 | 300 | 419,331 | ||||||
Series R, 6.75%, 07/01/37 | 195 | 280,410 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
New England Power Co., 3.80%, 12/05/47 (Call 06/05/47)(a)(b) | $ | 900 | $ | 976,631 | ||||
New York State Electric & Gas Corp., 3.30%, 09/15/49 (Call 03/15/49)(b) | 100 | 98,907 | ||||||
Niagara Mohawk Power Corp., 4.28%, 10/01/34 (Call 04/01/34)(b) | 50 | 57,929 | ||||||
Northern States Power Co./MN 2.90%, 03/01/50 (Call 09/01/49) | 240 | 233,455 | ||||||
3.40%, 08/15/42 (Call 02/15/42)(a) | 610 | 641,771 | ||||||
3.60%, 05/15/46 (Call 11/15/45) | 75 | 80,981 | ||||||
4.00%, 08/15/45 (Call 02/15/45)(a) | 115 | 131,201 | ||||||
4.13%, 05/15/44 (Call 11/15/43) | 32 | 37,268 | ||||||
4.85%, 08/15/40 (Call 02/15/40) | 25 | 30,180 | ||||||
5.35%, 11/01/39 | 105 | 139,005 | ||||||
6.25%, 06/01/36 | 401 | 565,383 | ||||||
NorthWestern Corp., 4.18%, 11/15/44 (Call 05/15/44) | 546 | 614,501 | ||||||
NSTAR Electric Co. | 110 | 129,978 | ||||||
5.50%, 03/15/40 | 346 | 452,510 | ||||||
Oglethorpe Power Corp. | 450 | 471,245 | ||||||
4.25%, 04/01/46 (Call 10/01/45) | 105 | 107,200 | ||||||
4.55%, 06/01/44 | 530 | 584,986 | ||||||
5.05%, 10/01/48 (Call 04/01/48) | 110 | 133,142 | ||||||
5.25%, 09/01/50 | 255 | 320,226 | ||||||
5.38%, 11/01/40 | 595 | 723,722 | ||||||
5.95%, 11/01/39 | 305 | 391,384 | ||||||
Ohio Edison Co. | 350 | 499,940 | ||||||
8.25%, 10/15/38 | 65 | 105,671 | ||||||
Ohio Power Co. | 275 | 316,656 | ||||||
4.15%, 04/01/48 (Call 10/01/47)(a) | 165 | 193,322 | ||||||
Series D, 6.60%, 03/01/33 | 190 | 264,883 | ||||||
Oklahoma Gas & Electric Co. | 630 | 659,765 | ||||||
3.85%, 08/15/47 (Call 02/15/47) | 320 | 338,192 | ||||||
4.15%, 04/01/47 (Call 10/01/46) | 405 | 445,120 | ||||||
Oncor Electric Delivery Co. LLC | 425 | 426,265 | ||||||
3.75%, 04/01/45 (Call 10/01/44) | 325 | 362,889 | ||||||
3.80%, 09/30/47 (Call 03/30/47) | 325 | 366,794 | ||||||
3.80%, 06/01/49 (Call 12/01/48)(b) | 490 | 553,204 | ||||||
4.10%, 11/15/48 (Call 05/15/48)(a) | 300 | 356,264 | ||||||
4.55%, 12/01/41 (Call 06/01/41) | 410 | 495,496 | ||||||
5.25%, 09/30/40 | 305 | 394,102 | ||||||
5.30%, 06/01/42 (Call 12/01/41) | 810 | 1,076,735 | ||||||
7.00%, 05/01/32 | 15 | 21,546 | ||||||
7.25%, 01/15/33 | 185 | 272,935 | ||||||
7.50%, 09/01/38 | 60 | 96,013 | ||||||
PacifiCorp | 255 | 290,053 | ||||||
4.13%, 01/15/49 (Call 07/15/48)(a) | 675 | 791,596 | ||||||
4.15%, 02/15/50 (Call 08/15/49) | 700 | 829,479 | ||||||
5.75%, 04/01/37 | 125 | 167,633 | ||||||
6.00%, 01/15/39 | 900 | 1,250,396 | ||||||
6.10%, 08/01/36 | 780 | 1,065,626 | ||||||
6.25%, 10/15/37 | 90 | 127,613 | ||||||
6.35%, 07/15/38 | 180 | 253,695 |
36 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
PECO Energy Co. | $ | 80 | $ | 78,682 | ||||
3.90%, 03/01/48 (Call 09/01/47) | 540 | 610,769 | ||||||
4.15%, 10/01/44 (Call 04/01/44) | 240 | 275,865 | ||||||
4.80%, 10/15/43 (Call 04/15/43) | 150 | 186,107 | ||||||
5.95%, 10/01/36 | 111 | 149,395 | ||||||
Pennsylvania Electric Co., 6.15%, 10/01/38 | 75 | 97,168 | ||||||
Perusahaan Listrik Negara PT | 1,400 | 1,492,750 | ||||||
6.15%, 05/21/48(b) | 1,000 | 1,256,231 | ||||||
6.25%, 01/25/49(a)(b) | 590 | 750,038 | ||||||
Potomac Electric Power Co. | 526 | 593,742 | ||||||
6.50%, 11/15/37 | 345 | 492,255 | ||||||
7.90%, 12/15/38 | 75 | 115,509 | ||||||
PPL Capital Funding Inc. | 635 | 660,473 | ||||||
4.70%, 06/01/43 (Call 12/01/42) | 675 | 764,748 | ||||||
5.00%, 03/15/44 (Call 09/15/43) | 680 | 801,006 | ||||||
PPL Electric Utilities Corp. | 430 | 416,555 | ||||||
3.95%, 06/01/47 (Call 12/01/46) | 345 | 390,217 | ||||||
4.13%, 06/15/44 (Call 12/15/43) | 185 | 212,237 | ||||||
4.15%, 06/15/48 (Call 12/15/47) | 305 | 358,276 | ||||||
4.75%, 07/15/43 (Call 01/15/43) | 195 | 242,097 | ||||||
6.25%, 05/15/39 | 315 | 444,383 | ||||||
Progress Energy Inc. | 240 | 320,292 | ||||||
7.00%, 10/30/31 | 310 | 428,392 | ||||||
7.75%, 03/01/31 | 349 | 499,044 | ||||||
PSEG Power LLC, 8.63%, 04/15/31 | 520 | 731,989 | ||||||
Public Service Co. of Colorado | 285 | 300,545 | ||||||
3.60%, 09/15/42 (Call 03/15/42) | 250 | 270,254 | ||||||
3.80%, 06/15/47 (Call 12/15/46) | 390 | 438,804 | ||||||
3.95%, 03/15/43 (Call 09/15/42) | 125 | 136,508 | ||||||
4.05%, 09/15/49 (Call 03/15/49) | 805 | 956,117 | ||||||
4.10%, 06/15/48 (Call 12/15/47) | 350 | 407,840 | ||||||
4.30%, 03/15/44 (Call 09/15/43) | 205 | 241,362 | ||||||
4.75%, 08/15/41 (Call 02/15/41) | 5 | 6,034 | ||||||
6.50%, 08/01/38 | 150 | 218,702 | ||||||
Series 17, 6.25%, 09/01/37 | 390 | 555,001 | ||||||
Series 34, 3.20%, 03/01/50 (Call 09/01/49)(a) | 965 | 990,732 | ||||||
Public Service Co. of New Hampshire, 3.60%, 07/01/49 (Call 01/01/49)(a) | 1,090 | 1,184,461 | ||||||
Public Service Co. of Oklahoma, Series G, 6.63%, 11/15/37 | 50 | 69,789 | ||||||
Public Service Electric & Gas Co. | 680 | 701,687 | ||||||
3.60%, 12/01/47 (Call 06/01/47) | 745 | 816,501 | ||||||
3.65%, 09/01/42 (Call 03/01/42) | 235 | 254,766 | ||||||
3.80%, 03/01/46 (Call 09/01/45)(a) | 633 | 716,225 | ||||||
3.85%, 05/01/49 (Call 11/01/48) | 575 | 658,984 | ||||||
3.95%, 05/01/42 (Call 11/01/41)(a) | 560 | 641,172 | ||||||
4.05%, 05/01/48 (Call 11/01/47) | 155 | 183,166 | ||||||
4.15%, 11/01/45 (Call 05/01/45) | 25 | 28,301 | ||||||
5.50%, 03/01/40 | 50 | 66,535 | ||||||
5.80%, 05/01/37 | 225 | 303,124 | ||||||
Puget Sound Energy Inc. 3.25%, 09/15/49 (Call 03/15/49) | 1,235 | 1,257,228 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
4.22%, 06/15/48 (Call 12/15/47) | $ | 25 | $ | 29,274 | ||||
4.30%, 05/20/45 (Call 11/20/44) | 449 | 530,247 | ||||||
4.43%, 11/15/41 (Call 05/15/41) | 345 | 399,048 | ||||||
5.64%, 04/15/41 (Call 10/15/40) | 235 | 313,164 | ||||||
5.76%, 10/01/39 | 225 | 304,922 | ||||||
5.80%, 03/15/40 | 106 | 144,018 | ||||||
6.27%, 03/15/37 | 340 | 466,954 | ||||||
Ruwais Power Co. PJSC, 6.00%, 08/31/36 | 450 | 555,469 | ||||||
San Diego Gas & Electric Co. | 85 | 87,910 | ||||||
4.15%, 05/15/48 (Call 11/15/47) | 465 | 528,275 | ||||||
4.50%, 08/15/40 | 645 | 741,220 | ||||||
5.35%, 05/15/40 | 25 | 30,393 | ||||||
6.00%, 06/01/39 | 163 | 213,435 | ||||||
Series RRR, 3.75%, 06/01/47 (Call 12/01/46) | 279 | 290,002 | ||||||
Series TTT, 4.10%, 06/15/49 (Call 12/15/48) | 30 | 33,135 | ||||||
Saudi Electricity Global Sukuk Co. 3, 5.50%, 04/08/44(a)(b) | 1,400 | 1,671,600 | ||||||
Sempra Energy | 2,556 | 2,599,585 | ||||||
4.00%, 02/01/48 (Call 08/01/47) | 499 | 522,550 | ||||||
6.00%, 10/15/39 | 450 | 572,959 | ||||||
Southern California Edison Co. | 846 | 889,361 | ||||||
4.05%, 03/15/42 (Call 09/15/41) | 330 | 345,664 | ||||||
4.50%, 09/01/40 (Call 03/01/40) | 443 | 474,752 | ||||||
4.65%, 10/01/43 (Call 04/01/43) | 599 | 669,603 | ||||||
5.50%, 03/15/40 | 247 | 295,897 | ||||||
5.63%, 02/01/36 | 275 | 326,147 | ||||||
6.00%, 01/15/34 | 363 | 443,777 | ||||||
6.05%, 03/15/39(a) | 650 | 815,399 | ||||||
Series04-G, 5.75%, 04/01/35 | 105 | 125,940 | ||||||
Series05-B, 5.55%, 01/15/36 | 285 | 335,559 | ||||||
Series05-E, 5.35%, 07/15/35 | 335 | 390,469 | ||||||
Series06-E, 5.55%, 01/15/37(a) | 250 | 300,415 | ||||||
Series08-A, 5.95%, 02/01/38(a) | 475 | 586,650 | ||||||
Series13-A, 3.90%, 03/15/43 (Call 09/15/42) | 410 | 418,953 | ||||||
Series B, 4.88%, 03/01/49 (Call 09/01/48) | 724 | 860,994 | ||||||
Series C, 3.60%, 02/01/45 (Call 08/01/44) | 555 | 540,582 | ||||||
Series C, 4.13%, 03/01/48 (Call 09/01/47) | 723 | 773,575 | ||||||
Southern Co. (The) | 1,322 | 1,447,270 | ||||||
4.40%, 07/01/46 (Call 01/01/46) | 1,255 | 1,415,086 | ||||||
Southern Power Co. | 595 | 676,682 | ||||||
5.25%, 07/15/43 | 225 | 259,027 | ||||||
Series F, 4.95%, 12/15/46 (Call 06/15/46) | 170 | 189,146 | ||||||
Southwestern Electric Power Co. | 435 | 582,435 | ||||||
Series J, 3.90%, 04/01/45 (Call 10/01/44) | 820 | 869,457 | ||||||
Series L, 3.85%, 02/01/48 (Call 08/01/47) | 365 | 385,585 | ||||||
Southwestern Public Service Co. | 635 | 658,794 | ||||||
3.70%, 08/15/47 (Call 02/15/47) | 345 | 375,316 | ||||||
3.75%, 06/15/49 (Call 12/15/48) | 65 | 71,705 | ||||||
4.50%, 08/15/41 (Call 02/15/41) | 130 | 154,037 | ||||||
6.00%, 10/01/36 | 395 | 505,351 | ||||||
Series 6, 4.40%, 11/15/48 (Call 05/15/48) | 450 | 542,634 | ||||||
State Grid Overseas Investment 2014 Ltd., 4.85%, 05/07/44 | 1,000 | 1,269,480 |
SCHEDULE OF INVESTMENTS | 37 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
State Grid Overseas Investment 2016 Ltd., 4.00%, 05/04/47(a)(b) | $ | 540 | $ | 616,469 | ||||
Tampa Electric Co. | 350 | 376,805 | ||||||
4.10%, 06/15/42 (Call 12/15/41) | 450 | 500,330 | ||||||
4.20%, 05/15/45 (Call 11/15/44) | 350 | 389,476 | ||||||
4.35%, 05/15/44 (Call 11/15/43) | 200 | 231,045 | ||||||
4.45%, 06/15/49 (Call 12/15/48) | 345 | 414,322 | ||||||
Toledo Edison Co. (The), 6.15%, 05/15/37(a) | 375 | 514,934 | ||||||
Tri-State Generation & Transmission Association Inc. | 55 | 61,274 | ||||||
6.00%, 06/15/40(b) | 700 | 944,592 | ||||||
Tucson Electric Power Co., 4.85%, 12/01/48 (Call 06/01/48) | 250 | 311,736 | ||||||
Union Electric Co. | 250 | 255,305 | ||||||
3.90%, 09/15/42 (Call 03/15/42) | 610 | 686,170 | ||||||
4.00%, 04/01/48 (Call 10/01/47) | 270 | 309,085 | ||||||
8.45%, 03/15/39 | 201 | 338,807 | ||||||
Virginia Electric & Power Co. | 346 | 385,261 | ||||||
4.45%, 02/15/44 (Call 08/15/43) | 510 | 603,077 | ||||||
4.60%, 12/01/48 (Call 06/01/48) | 605 | 745,103 | ||||||
6.35%, 11/30/37 | 25 | 35,268 | ||||||
8.88%, 11/15/38 | 300 | 507,307 | ||||||
Series A, 6.00%, 05/15/37 | 100 | 134,576 | ||||||
Series B, 3.80%, 09/15/47 (Call 03/15/47) | 450 | 492,920 | ||||||
Series B, 4.20%, 05/15/45 (Call 11/15/44) | 7 | 8,052 | ||||||
Series B, 6.00%, 01/15/36 | 250 | 333,996 | ||||||
Series C, 4.00%, 11/15/46 (Call 05/15/46) | 585 | 656,303 | ||||||
Series D, 4.65%, 08/15/43 (Call 02/15/43) | 231 | 281,380 | ||||||
Westar Energy Inc. | 375 | 379,218 | ||||||
4.10%, 04/01/43 (Call 10/01/42) | 205 | 231,435 | ||||||
4.13%, 03/01/42 (Call 09/01/41)(a) | 425 | 478,380 | ||||||
4.25%, 12/01/45 (Call 06/01/45) | 380 | 441,942 | ||||||
4.63%, 09/01/43 (Call 03/01/43) | 245 | 295,231 | ||||||
Wisconsin Electric Power Co. | 385 | 462,205 | ||||||
5.70%, 12/01/36 | 5 | 6,732 | ||||||
Wisconsin Power & Light Co., 6.38%, 08/15/37 | 380 | 541,430 | ||||||
Wisconsin Public Service Corp. | 1,370 | 1,416,434 | ||||||
4.75%, 11/01/44 (Call 05/01/44) | 215 | 266,181 | ||||||
Xcel Energy Inc. | 279 | 321,748 | ||||||
6.50%, 07/01/36 | 225 | 306,273 | ||||||
|
| |||||||
220,077,482 | ||||||||
Electrical Components & Equipment — 0.0% | ||||||||
Emerson Electric Co., 6.00%, 08/15/32 | 400 | 538,508 | ||||||
|
| |||||||
Electronics — 0.1% | ||||||||
Fortive Corp., 4.30%, 06/15/46 (Call 12/15/45) | 759 | 799,040 | ||||||
Honeywell International Inc., 3.81%, 11/21/47 (Call 05/21/47) | 425 | 490,770 | ||||||
Tyco Electronics Group SA, 7.13%, 10/01/37 | 200 | 287,533 | ||||||
|
| |||||||
1,577,343 | ||||||||
Engineering & Construction — 0.2% | ||||||||
Aeropuerto Internacional de Tocumen SA, 6.00%, 11/18/48 (Call 11/18/47) | 1,050 | 1,305,150 |
Security | Par (000) | Value | ||||||
Engineering & Construction (continued) | ||||||||
Mexico City Airport Trust | $ | 400 | $ | 401,875 | ||||
5.50%, 07/31/47 (Call 01/31/47)(b) | 1,733 | 1,735,946 | ||||||
|
| |||||||
3,442,971 | ||||||||
Environmental Control — 0.2% | ||||||||
Republic Services Inc., 5.70%, 05/15/41 (Call 11/15/40) | 40 | 53,354 | ||||||
Waste Management Inc. | 300 | 333,443 | ||||||
4.00%, 07/15/39 (Call 01/15/39)(a) | 850 | 967,772 | ||||||
4.10%, 03/01/45 (Call 09/01/44) | 550 | 636,140 | ||||||
4.15%, 07/15/49 (Call 01/15/49) | 855 | 992,331 | ||||||
|
| |||||||
2,983,040 | ||||||||
Food — 2.2% | ||||||||
Campbell Soup Co. | 486 | 479,492 | ||||||
4.80%, 03/15/48 (Call 09/15/47)(a) | 685 | 777,539 | ||||||
Conagra Brands Inc. | 1,066 | 1,250,308 | ||||||
5.40%, 11/01/48 (Call 05/01/48) | 1,030 | 1,220,315 | ||||||
8.25%, 09/15/30 | 520 | 726,430 | ||||||
General Mills Inc. | 30 | 32,395 | ||||||
4.55%, 04/17/38 (Call 10/17/37) | 580 | 666,613 | ||||||
4.70%, 04/17/48 (Call 10/17/47)(a) | 435 | 512,543 | ||||||
5.40%, 06/15/40 | 425 | 526,877 | ||||||
Grupo Bimbo SAB de CV | 500 | 478,495 | ||||||
4.70%, 11/10/47 (Call 05/10/47)(b) | 200 | 214,313 | ||||||
Hershey Co. (The) | 250 | 255,033 | ||||||
3.38%, 08/15/46 (Call 02/15/46) | 200 | 213,821 | ||||||
Ingredion Inc., 6.63%, 04/15/37 | 200 | 260,321 | ||||||
JM Smucker Co. (The) | 695 | 750,845 | ||||||
4.38%, 03/15/45 | 440 | 488,044 | ||||||
Kellogg Co. | 380 | 426,440 | ||||||
Series B, 7.45%, 04/01/31 | 831 | 1,157,168 | ||||||
Koninklijke Ahold Delhaize NV, | 252 | 309,313 | ||||||
Kraft Heinz Foods Co. | 500 | 511,036 | ||||||
4.38%, 06/01/46 (Call 12/01/45) | 2,104 | 2,055,683 | ||||||
4.63%, 10/01/39 (Call 04/01/39)(b) | 390 | 398,495 | ||||||
5.00%, 07/15/35 (Call 01/15/35) | 1,050 | 1,140,772 | ||||||
5.00%, 06/04/42 | 1,230 | 1,288,066 | ||||||
5.20%, 07/15/45 (Call 01/15/45) | 1,452 | 1,543,542 | ||||||
6.50%, 02/09/40 | 935 | 1,150,547 | ||||||
6.75%, 03/15/32 | 525 | 654,814 | ||||||
6.88%, 01/26/39 | 1,035 | 1,285,390 | ||||||
Kroger Co. (The) | 640 | 608,255 | ||||||
4.45%, 02/01/47 (Call 08/01/46)(a) | 645 | 667,336 | ||||||
4.65%, 01/15/48 (Call 07/15/47) | 380 | 405,758 | ||||||
5.00%, 04/15/42 (Call 10/15/41) | 375 | 408,463 | ||||||
5.15%, 08/01/43 (Call 02/01/43) | 195 | 218,467 | ||||||
5.40%, 07/15/40 (Call 01/15/40)(a) | 545 | 617,244 | ||||||
5.40%, 01/15/49 (Call 07/15/48) | 265 | 314,520 | ||||||
6.90%, 04/15/38 | 265 | 355,615 | ||||||
7.50%, 04/01/31 | 305 | 424,252 |
38 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Food (continued) | ||||||||
Mars Inc. | ||||||||
3.20%, 04/01/30 (Call 01/01/30)(a)(b) | $ | 275 | $ | 296,432 | ||||
3.60%, 04/01/34 (Call 01/01/34)(b) | 95 | 106,304 | ||||||
3.88%, 04/01/39 (Call 10/01/38)(b) | 625 | 701,184 | ||||||
3.95%, 04/01/44 (Call 10/01/43)(b) | 675 | 767,702 | ||||||
3.95%, 04/01/49 (Call 10/01/48)(a)(b) | 775 | 892,720 | ||||||
4.13%, 04/01/54 (Call 10/01/53)(b) | 475 | 547,711 | ||||||
4.20%, 04/01/59 (Call 10/01/58)(b) | 675 | 785,149 | ||||||
McCormick & Co. Inc./MD, 4.20%, 08/15/47 (Call 02/15/47) | 315 | 353,427 | ||||||
Mondelez International Inc., 4.63%, 05/07/48 (Call 11/07/47) | 625 | 719,428 | ||||||
Nestle Holdings Inc. | ||||||||
3.90%, 09/24/38 (Call 03/24/38)(a)(b) | 1,555 | 1,782,298 | ||||||
4.00%, 09/24/48 (Call 03/24/48)(a)(b) | 1,500 | 1,766,862 | ||||||
Sysco Corp. | ||||||||
4.45%, 03/15/48 (Call 09/15/47)(a) | 635 | 746,219 | ||||||
4.50%, 04/01/46 (Call 10/01/45) | 506 | 594,993 | ||||||
4.85%, 10/01/45 (Call 04/01/45) | 360 | 440,951 | ||||||
5.38%, 09/21/35 | 225 | 283,508 | ||||||
Tesco PLC, 6.15%, 11/15/37(b) | 700 | 804,957 | ||||||
Tyson Foods Inc. | ||||||||
4.55%, 06/02/47 (Call 12/02/46) | 405 | 463,406 | ||||||
4.88%, 08/15/34 (Call 02/15/34) | 430 | 515,081 | ||||||
5.10%, 09/28/48 (Call 03/28/48) | 1,539 | 1,888,605 | ||||||
5.15%, 08/15/44 (Call 02/15/44) | 810 | 990,031 | ||||||
|
| |||||||
40,241,528 | ||||||||
Forest Products & Paper — 0.5% | ||||||||
Celulosa Arauco y Constitucion SA | ||||||||
5.50%, 11/02/47 (Call 05/02/47)(a) | 200 | 213,375 | ||||||
5.50%, 04/30/49 (Call 10/30/48) | 500 | 527,758 | ||||||
Domtar Corp. | ||||||||
6.25%, 09/01/42 | 200 | 217,226 | ||||||
6.75%, 02/15/44 (Call 08/15/43) | 360 | 406,441 | ||||||
Georgia-Pacific LLC | ||||||||
7.75%, 11/15/29 | 275 | 394,988 | ||||||
8.88%, 05/15/31 | 449 | 710,767 | ||||||
International Paper Co. | ||||||||
4.35%, 08/15/48 (Call 02/15/48)(a) | 930 | 964,833 | ||||||
4.40%, 08/15/47 (Call 02/15/47) | 1,090 | 1,131,781 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 816 | 885,209 | ||||||
5.00%, 09/15/35 (Call 03/15/35) | 415 | 481,091 | ||||||
5.15%, 05/15/46 (Call 11/15/45) | 495 | 562,884 | ||||||
6.00%, 11/15/41 (Call 05/15/41) | 385 | 475,519 | ||||||
7.30%, 11/15/39 | 485 | 665,204 | ||||||
8.70%, 06/15/38 | 75 | 111,047 | ||||||
Stora Enso OYJ, 7.25%, 04/15/36(b) | 470 | 564,000 | ||||||
Suzano Austria GmbH | ||||||||
5.00%, 01/15/30 (Call 10/15/29) | 400 | 412,000 | ||||||
7.00%, 03/16/47 (Call 09/16/46)(b) | 900 | 1,046,250 | ||||||
|
| |||||||
9,770,373 | ||||||||
Gas — 1.2% | ||||||||
Atmos Energy Corp. | ||||||||
3.38%, 09/15/49 (Call 03/15/49) | 815 | 849,485 | ||||||
4.13%, 10/15/44 (Call 04/15/44) | 565 | 656,739 | ||||||
4.13%, 03/15/49 (Call 09/15/48) | 285 | 335,581 | ||||||
4.15%, 01/15/43 (Call 07/15/42) | 290 | 329,966 | ||||||
4.30%, 10/01/48 (Call 04/01/48) | 400 | 480,598 | ||||||
5.50%, 06/15/41 (Call 12/15/40) | 190 | 248,934 |
Security | Par (000) | Value | ||||||
Gas (continued) | ||||||||
Brooklyn Union Gas Co. (The) | ||||||||
4.27%, 03/15/48 (Call 09/15/47)(b) | $ | 1,225 | $ | 1,430,840 | ||||
4.49%, 03/04/49 (Call 09/04/48)(a)(b) | 1,325 | 1,598,154 | ||||||
CenterPoint Energy Resources Corp. | ||||||||
4.10%, 09/01/47 (Call 03/01/47) | 230 | 248,359 | ||||||
5.85%, 01/15/41 (Call 07/15/40) | 235 | 304,756 | ||||||
Centrica PLC, 5.38%, 10/16/43 (Call 04/16/43)(b) | 250 | 294,636 | ||||||
Dominion Energy Gas Holdings LLC | ||||||||
4.60%, 12/15/44 (Call 06/15/44)(a) | 890 | 1,058,264 | ||||||
4.80%, 11/01/43 (Call 05/01/43) | 115 | 139,155 | ||||||
KeySpan Gas East Corp., 5.82%, 04/01/41(b) | 250 | 335,274 | ||||||
Korea Gas Corp., 6.25%, 01/20/42(b) | 640 | 972,000 | ||||||
Nakilat Inc., 6.07%, 12/31/33(a)(b) | 650 | 791,172 | ||||||
NiSource Inc. | ||||||||
3.95%, 03/30/48 (Call 09/30/47) | 370 | 396,112 | ||||||
4.38%, 05/15/47 (Call 11/15/46) | 505 | 570,134 | ||||||
4.80%, 02/15/44 (Call 08/15/43) | 903 | 1,059,794 | ||||||
5.25%, 02/15/43 (Call 08/15/42) | 572 | 697,220 | ||||||
5.65%, 02/01/45 (Call 08/01/44) | 561 | 726,539 | ||||||
5.80%, 02/01/42 (Call 08/01/41) | 150 | 189,098 | ||||||
5.95%, 06/15/41 (Call 12/15/40) | 310 | 392,526 | ||||||
ONE Gas Inc. | ||||||||
4.50%, 11/01/48 (Call 05/01/48) | 405 | 492,297 | ||||||
4.66%, 02/01/44 (Call 08/01/43) | 485 | 587,961 | ||||||
Piedmont Natural Gas Co. Inc. | ||||||||
3.64%, 11/01/46 (Call 05/01/46) | 70 | 71,733 | ||||||
4.10%, 09/18/34 (Call 03/18/34) | 100 | 112,808 | ||||||
4.65%, 08/01/43 (Call 02/01/43) | 153 | 178,046 | ||||||
Southern California Gas Co. | ||||||||
3.75%, 09/15/42 (Call 03/15/42) | 180 | 192,014 | ||||||
3.95%, 02/15/50 (Call 08/15/49) | 575 | 643,898 | ||||||
4.45%, 03/15/44 (Call 09/15/43) | 470 | 534,921 | ||||||
5.13%, 11/15/40 | 80 | 98,779 | ||||||
Series UU, 4.13%, 06/01/48 (Call 12/01/47) | 105 | 120,642 | ||||||
Series VV, 4.30%, 01/15/49 (Call 07/15/48) | 210 | 247,481 | ||||||
Southern Co. Gas Capital Corp. | ||||||||
3.95%, 10/01/46 (Call 04/01/46) | 250 | 263,784 | ||||||
4.40%, 06/01/43 (Call 12/01/42) | 316 | 352,908 | ||||||
4.40%, 05/30/47 (Call 11/30/46) | 170 | 190,641 | ||||||
5.88%, 03/15/41 (Call 09/15/40) | 867 | 1,121,204 | ||||||
6.00%, 10/01/34 | 400 | 518,196 | ||||||
Southwest Gas Corp. | ||||||||
3.80%, 09/29/46 (Call 03/29/46) | 160 | 167,358 | ||||||
4.15%, 06/01/49 (Call 12/01/48)(a) | 325 | 362,316 | ||||||
Spire Inc., 4.70%, 08/15/44 (Call 02/15/44) | 100 | 116,053 | ||||||
Washington Gas Light Co. | ||||||||
3.65%, 09/15/49 (Call 03/15/49) | 500 | 516,104 | ||||||
Series K, 3.80%, 09/15/46 (Call 03/15/46) | 175 | 182,574 | ||||||
|
| |||||||
21,177,054 | ||||||||
Hand & Machine Tools — 0.1% | ||||||||
Snap-on Inc., 4.10%, 03/01/48 (Call 09/01/47) | 450 | 521,780 | ||||||
Stanley Black & Decker Inc. | ||||||||
4.85%, 11/15/48 (Call 05/15/48) | 150 | 189,010 | ||||||
5.20%, 09/01/40 | 235 | 291,763 | ||||||
|
| |||||||
1,002,553 | ||||||||
Health Care – Products — 1.5% | ||||||||
Abbott Laboratories | ||||||||
4.75%, 11/30/36 (Call 05/30/36) | 2,260 | 2,777,677 | ||||||
4.75%, 04/15/43 (Call 10/15/42) | 740 | 901,853 |
SCHEDULE OF INVESTMENTS | 39 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Products (continued) | ||||||||
4.90%, 11/30/46 (Call 05/30/46) | $ | 3,115 | $ | 3,980,798 | ||||
5.30%, 05/27/40 | 310 | 400,646 | ||||||
6.00%, 04/01/39 | 200 | 278,165 | ||||||
Alcon Finance Corp., 3.80%, 09/23/49 (Call 03/23/49) | 200 | 208,060 | ||||||
Baxter International Inc., 3.50%, 08/15/46 (Call 02/15/46) | 1,278 | 1,275,234 | ||||||
Becton Dickinson and Co. | ||||||||
4.67%, 06/06/47 (Call 12/06/46) | 1,515 | 1,822,178 | ||||||
4.69%, 12/15/44 (Call 06/15/44) | 929 | 1,093,674 | ||||||
Boston Scientific Corp. | ||||||||
4.55%, 03/01/39 (Call 09/01/38)(a) | 565 | 667,079 | ||||||
4.70%, 03/01/49 (Call 09/01/48) | 1,175 | 1,428,457 | ||||||
7.00%, 11/15/35 | 130 | 182,406 | ||||||
7.38%, 01/15/40 | 220 | 335,318 | ||||||
Danaher Corp., 4.38%, 09/15/45 (Call 03/15/45) | 455 | 535,143 | ||||||
DH Europe Finance II Sarl, 3.40%, 11/15/49 (Call 05/15/49) | 95 | 96,977 | ||||||
Koninklijke Philips NV, 5.00%, 03/15/42(a) | 1,035 | 1,248,650 | ||||||
Medtronic Inc. | ||||||||
4.38%, 03/15/35 | 1,715 | 2,046,613 | ||||||
4.63%, 03/15/45 | 2,346 | 3,012,860 | ||||||
Stryker Corp. | ||||||||
4.10%, 04/01/43 (Call 10/01/42) | 475 | 527,444 | ||||||
4.38%, 05/15/44 (Call 11/15/43)(a) | 200 | 230,413 | ||||||
4.63%, 03/15/46 (Call 09/15/45) | 965 | 1,179,805 | ||||||
Thermo Fisher Scientific Inc. | ||||||||
4.10%, 08/15/47 (Call 02/15/47) | 856 | 981,265 | ||||||
5.30%, 02/01/44 (Call 08/01/43) | 597 | 767,438 | ||||||
Zimmer Biomet Holdings Inc. | ||||||||
4.25%, 08/15/35 (Call 02/15/35) | 465 | 468,293 | ||||||
4.45%, 08/15/45 (Call 02/15/45) | 315 | 336,165 | ||||||
5.75%, 11/30/39 | 200 | 239,266 | ||||||
|
| |||||||
27,021,877 | ||||||||
Health Care – Services — 2.5% | ||||||||
Advocate Health & Hospitals Corp., 4.27%, 08/15/48 (Call 02/15/48) | 75 | 89,320 | ||||||
Aetna Inc. | ||||||||
3.88%, 08/15/47 (Call 02/15/47) | 405 | 392,202 | ||||||
4.13%, 11/15/42 (Call 05/15/42) | 750 | 756,734 | ||||||
4.50%, 05/15/42 (Call 11/15/41) | 935 | 996,818 | ||||||
4.75%, 03/15/44 (Call 09/15/43) | 580 | 635,735 | ||||||
6.63%, 06/15/36 | 365 | 479,382 | ||||||
6.75%, 12/15/37 | 410 | 547,693 | ||||||
Anthem Inc. | ||||||||
4.38%, 12/01/47 (Call 06/01/47) | 495 | 530,680 | ||||||
4.55%, 03/01/48 (Call 09/01/47) | 780 | 857,322 | ||||||
4.63%, 05/15/42 | 857 | 945,210 | ||||||
4.65%, 01/15/43 | 1,029 | 1,141,530 | ||||||
4.65%, 08/15/44 (Call 02/15/44) | 590 | 649,883 | ||||||
4.85%, 08/15/54 (Call 02/15/54) | 275 | 305,678 | ||||||
5.10%, 01/15/44 | 1,475 | 1,710,773 | ||||||
Ascension Health | ||||||||
3.95%, 11/15/46 | 1,148 | 1,323,158 | ||||||
4.85%, 11/15/53 | 146 | 193,587 | ||||||
Baylor Scott & White Holdings | ||||||||
3.97%, 11/15/46 (Call 05/15/46) | 350 | 391,227 | ||||||
4.19%, 11/15/45 (Call 05/15/45) | 201 | 236,001 | ||||||
CommonSpirit Health | ||||||||
3.82%, 10/01/49 (Call 04/01/49) | 525 | 525,244 | ||||||
4.19%, 10/01/49 (Call 04/01/49) | 720 | 737,605 | ||||||
4.35%, 11/01/42 | 640 | 675,096 |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
Dartmouth-Hitchcock Health, Series B, 4.18%, 08/01/48 (Call 02/01/48) | $ | 230 | $ | 262,962 | ||||
Dignity Health | ||||||||
4.50%, 11/01/42 | 180 | 193,342 | ||||||
5.27%, 11/01/64 | 115 | 137,386 | ||||||
Hackensack Meridian Health Inc., 4.21%, 07/01/48 (Call 01/01/48) | 75 | 87,933 | ||||||
HCA Inc. | ||||||||
5.13%, 06/15/39 (Call 12/15/38) | 1,745 | 1,916,494 | ||||||
5.25%, 06/15/49 (Call 12/15/48) | 1,100 | 1,217,293 | ||||||
5.50%, 06/15/47 (Call 12/15/46) | 975 | 1,115,270 | ||||||
Humana Inc. | ||||||||
3.95%, 08/15/49 (Call 02/15/49) | 680 | 697,445 | ||||||
4.63%, 12/01/42 (Call 06/01/42)(a) | 685 | 749,835 | ||||||
4.80%, 03/15/47 (Call 09/15/46) | 215 | 245,398 | ||||||
4.95%, 10/01/44 (Call 04/01/44) | 460 | 525,965 | ||||||
8.15%, 06/15/38 | 100 | 147,662 | ||||||
Indiana University Health Inc. Obligated Group, 3.97%, 11/01/48 (Call 05/01/48) | 100 | 118,105 | ||||||
Johns Hopkins Health System Corp. (The), 3.84%, 05/15/46 | 60 | 67,493 | ||||||
Kaiser Foundation Hospitals | ||||||||
4.15%, 05/01/47 (Call 11/01/46) | 1,658 | 1,948,490 | ||||||
4.88%, 04/01/42 | 100 | 127,644 | ||||||
Laboratory Corp. of America Holdings, 4.70%, 02/01/45 (Call 08/01/44) | 720 | 803,444 | ||||||
Mayo Clinic, Series 2013, 4.00%, 11/15/47 | 11 | 12,758 | ||||||
McLaren Health Care Corp., Series A, 4.39%, 05/15/48 (Call 11/15/47) | 25 | 29,246 | ||||||
Memorial Sloan-Kettering Cancer Center | ||||||||
4.13%, 07/01/52 | 325 | 387,885 | ||||||
Series 2015, 4.20%, 07/01/55 | 400 | 481,439 | ||||||
Montefiore Obligated Group, Series18-C, 5.25%, 11/01/48 | 195 | 224,175 | ||||||
Mount Sinai Hospitals Group Inc., Series 2017, 3.98%, 07/01/48(a) | 205 | 218,573 | ||||||
New York and Presbyterian Hospital (The) | ||||||||
4.02%, 08/01/45 | 51 | 58,747 | ||||||
4.06%, 08/01/56 | 450 | 516,001 | ||||||
Northwell Healthcare Inc. | ||||||||
3.98%, 11/01/46 (Call 11/01/45) | 880 | 943,260 | ||||||
4.26%, 11/01/47 (Call 11/01/46) | 460 | 509,019 | ||||||
Ochsner Clinic Foundation, 5.90%, 05/15/45 (Call 11/15/44) | 75 | 103,282 | ||||||
Providence St Joseph Health Obligated Group, Series I, 3.74%, 10/01/47 | 250 | 275,769 | ||||||
Quest Diagnostics Inc., 4.70%, 03/30/45 (Call 09/30/44) | 197 | 220,489 | ||||||
Roche Holdings Inc., 4.00%, 11/28/44 | 200 | 235,681 | ||||||
Southern Baptist Hospital of Florida Inc., 4.86%, 07/15/45 (Call 01/15/45) | 25 | 31,079 | ||||||
Stanford Health Care, Series 2018, 3.80%, 11/15/48 (Call 05/15/48) | 375 | 424,494 | ||||||
Sutter Health, Series 2018, 4.09%, 08/15/48 (Call 02/15/48) | 185 | 210,811 | ||||||
Texas Health Resources, 4.33%, 11/15/55 | 9 | 10,971 | ||||||
Toledo Hospital (The) | ||||||||
5.75%, 11/15/38 (Call 11/15/28) | 165 | 192,576 | ||||||
6.02%, 11/15/48(a) | 525 | 615,033 | ||||||
UnitedHealth Group Inc. | ||||||||
3.70%, 08/15/49 (Call 02/15/49)(a) | 1,060 | 1,115,682 |
40 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
3.75%, 10/15/47 (Call 04/15/47)(a) | $ | 765 | $ | 812,883 | ||||
3.88%, 08/15/59 (Call 02/15/59) | 1,440 | 1,524,073 | ||||||
3.95%, 10/15/42 (Call 04/15/42) | 617 | 673,695 | ||||||
4.20%, 01/15/47 (Call 07/15/46) | 480 | 542,312 | ||||||
4.25%, 03/15/43 (Call 09/15/42) | 940 | 1,064,616 | ||||||
4.25%, 04/15/47 (Call 10/15/46) | 430 | 492,223 | ||||||
4.25%, 06/15/48 (Call 12/15/47) | 1,132 | 1,302,795 | ||||||
4.38%, 03/15/42 (Call 09/15/41) | 350 | 401,347 | ||||||
4.45%, 12/15/48 (Call 06/15/48) | 680 | 802,530 | ||||||
4.63%, 07/15/35(a) | 1,549 | 1,876,311 | ||||||
4.63%, 11/15/41 (Call 05/15/41) | 300 | 355,547 | ||||||
4.75%, 07/15/45 | 1,135 | 1,386,542 | ||||||
5.70%, 10/15/40 (Call 04/15/40) | 260 | 345,436 | ||||||
5.80%, 03/15/36 | 390 | 518,325 | ||||||
5.95%, 02/15/41 (Call 08/15/40) | 350 | 473,879 | ||||||
6.50%, 06/15/37 | 400 | 574,790 | ||||||
6.63%, 11/15/37 | 386 | 560,971 | ||||||
6.88%, 02/15/38(a) | 893 | 1,325,369 | ||||||
Willis-Knighton Medical Center, Series 2018, 4.81%, 09/01/48 (Call 03/01/48) | 100 | 124,318 | ||||||
|
| |||||||
46,457,971 | ||||||||
Holding Companies – Diversified — 0.1% | ||||||||
CK Hutchison International 19 II Ltd., 3.38%, 09/06/49 (Call 03/06/49)(b) | 1,000 | 997,339 | ||||||
Hutchison Whampoa International Ltd., 7.45%, 11/24/33(b) | 175 | 259,080 | ||||||
PTT Treasury Center Co. Ltd., 5.88%, 08/03/35 | 600 | 754,421 | ||||||
|
| |||||||
2,010,840 | ||||||||
Home Furnishings — 0.1% | ||||||||
Whirlpool Corp. | 660 | 686,927 | ||||||
5.15%, 03/01/43(a) | 200 | 220,827 | ||||||
|
| |||||||
907,754 | ||||||||
Household Products & Wares — 0.1% | ||||||||
Kimberly-Clark Corp. | 725 | 735,213 | ||||||
3.90%, 05/04/47 (Call 11/04/46) | 310 | 354,669 | ||||||
5.30%, 03/01/41 | 31 | 40,937 | ||||||
6.63%, 08/01/37(a) | 330 | 490,193 | ||||||
SC Johnson & Son Inc., 4.75%, 10/15/46 (Call 04/16/46)(b) | 775 | 954,216 | ||||||
|
| |||||||
2,575,228 | ||||||||
Housewares — 0.1% | ||||||||
Newell Brands Inc. | 625 | 665,696 | ||||||
5.50%, 04/01/46 (Call 10/01/45) | 518 | 552,710 | ||||||
|
| |||||||
1,218,406 | ||||||||
Insurance — 5.2% | ||||||||
ACE Capital Trust II, Series N, 9.70%, 04/01/30 | 100 | 149,000 | ||||||
Aflac Inc. | 345 | 382,144 | ||||||
4.75%, 01/15/49 (Call 07/15/48) | 635 | 789,433 | ||||||
6.45%, 08/15/40 | 120 | 171,675 | ||||||
AIA Group Ltd., 4.50%, 03/16/46 (Call 09/16/45)(b) | 200 | 238,703 | ||||||
AIG SunAmerica Global Financing X, 6.90%, 03/15/32(b) | 385 | 542,063 | ||||||
Alleghany Corp., 4.90%, 09/15/44 (Call 03/15/44) | 140 | 164,318 | ||||||
Allstate Corp. (The) | 745 | 830,463 | ||||||
4.20%, 12/15/46 (Call 06/15/46) | 525 | 614,699 | ||||||
4.50%, 06/15/43 | 585 | 704,233 |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
5.35%, 06/01/33(a) | $ | 388 | $ | 491,683 | ||||
5.55%, 05/09/35 | 376 | 487,373 | ||||||
5.95%, 04/01/36(a) | 150 | 202,940 | ||||||
6.50%, 05/15/67 (Call 05/15/37)(c)(d) | 195 | 240,805 | ||||||
American Financial Group Inc./OH, 4.50%, 06/15/47 (Call 12/15/46) | 340 | 375,519 | ||||||
American International Group Inc. | 1,456 | 1,533,114 | ||||||
4.38%, 01/15/55 (Call 07/15/54) | 940 | 1,011,074 | ||||||
4.50%, 07/16/44 (Call 01/16/44) | 1,188 | 1,330,407 | ||||||
4.70%, 07/10/35 (Call 01/10/35) | 325 | 373,106 | ||||||
4.75%, 04/01/48 (Call 10/01/47) | 1,015 | 1,196,264 | ||||||
4.80%, 07/10/45 (Call 01/10/45) | 1,495 | 1,752,958 | ||||||
6.25%, 05/01/36 | 380 | 500,319 | ||||||
8.18%, 05/15/68 (Call 05/15/38)(a)(c)(d) | 170 | 227,800 | ||||||
Aon Corp., 6.25%, 09/30/40 | 325 | 444,391 | ||||||
Aon PLC | 710 | 824,311 | ||||||
4.75%, 05/15/45 (Call 11/15/44) | 411 | 488,725 | ||||||
Arch Capital Finance LLC, 5.03%, 12/15/46 (Call 06/15/46) | 245 | 308,819 | ||||||
Arch Capital Group Ltd., 7.35%, 05/01/34 | 270 | 390,249 | ||||||
Arch Capital Group U.S. Inc., 5.14%, 11/01/43 | 390 | 486,413 | ||||||
Assurant Inc., 6.75%, 02/15/34 | 48 | 58,857 | ||||||
AXA Equitable Holdings Inc., 5.00%, 04/20/48 (Call 10/20/47) | 1,090 | 1,175,241 | ||||||
AXA SA, 8.60%, 12/15/30(a) | 950 | 1,378,640 | ||||||
AXIS Specialty Finance PLC, 5.15%, 04/01/45(a) | 125 | 139,765 | ||||||
Berkshire Hathaway Finance Corp. | 1,710 | 2,012,126 | ||||||
4.25%, 01/15/49 (Call 07/15/48) | 1,532 | 1,826,399 | ||||||
4.30%, 05/15/43 | 778 | 916,993 | ||||||
4.40%, 05/15/42 | 1,100 | 1,309,676 | ||||||
5.75%, 01/15/40(a) | 545 | 769,668 | ||||||
Berkshire Hathaway Inc., 4.50%, 02/11/43 | 705 | 857,208 | ||||||
Brighthouse Financial Inc., 4.70%, 06/22/47 (Call 12/22/46) | 1,014 | 902,133 | ||||||
Chubb Corp. (The), 6.00%, 05/11/37 | 210 | 287,535 | ||||||
Chubb INA Holdings Inc. | 250 | 294,079 | ||||||
4.35%, 11/03/45 (Call 05/03/45) | 860 | 1,058,021 | ||||||
Everest Reinsurance Holdings Inc., 4.87%, 06/01/44 | 240 | 273,370 | ||||||
Farmers Exchange Capital III, 5.45%, 10/15/54 (Call 10/15/34)(b)(c)(d) | 340 | 391,513 | ||||||
Farmers Insurance Exchange, 4.75%, 11/01/57 (Call 11/01/37)(b)(c)(d) | 300 | 307,854 | ||||||
Great-West Lifeco Finance 2018 LP, 4.58%, 05/17/48 (Call 11/17/47)(b) | 1,000 | 1,187,654 | ||||||
Guardian Life Insurance Co. of America (The) | 450 | 572,194 | ||||||
4.88%, 06/19/64(b) | 240 | 304,759 | ||||||
Harborwalk Funding Trust, 5.08%, 02/15/69 (Call 02/15/49)(a)(b)(c)(d) | 590 | 715,847 | ||||||
Hartford Financial Services Group Inc. (The) | 510 | 520,827 | ||||||
4.30%, 04/15/43 | 104 | 117,704 | ||||||
4.40%, 03/15/48 (Call 09/15/47) | 465 | 541,483 | ||||||
5.95%, 10/15/36 | 303 | 397,233 | ||||||
6.10%, 10/01/41(a) | 300 | 407,622 | ||||||
6.63%, 03/30/40 | 455 | 634,421 |
SCHEDULE OF INVESTMENTS | 41 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
Liberty Mutual Group Inc. | $ | 1,935 | $ | 1,999,131 | ||||
4.50%, 06/15/49 (Call 12/15/48)(a)(b) | 667 | 747,268 | ||||||
Liberty Mutual Insurance Co., 7.70%, 10/15/97(b) | 70 | 103,500 | ||||||
Lincoln National Corp. | 800 | 881,696 | ||||||
6.30%, 10/09/37 | 116 | 153,028 | ||||||
7.00%, 06/15/40 | 825 | 1,186,170 | ||||||
Loews Corp. | 275 | 300,932 | ||||||
6.00%, 02/01/35 | 150 | 197,057 | ||||||
Manulife Financial Corp., 5.38%, 03/04/46(a) | 800 | 1,063,168 | ||||||
Markel Corp. | 525 | 536,720 | ||||||
4.30%, 11/01/47 (Call 05/01/47) | 170 | 179,868 | ||||||
5.00%, 04/05/46 | 745 | 862,191 | ||||||
5.00%, 05/20/49 (Call 11/20/48)(a) | 325 | 377,407 | ||||||
Marsh & McLennan Companies Inc. | 385 | 435,341 | ||||||
4.35%, 01/30/47 (Call 07/30/46) | 707 | 818,648 | ||||||
4.75%, 03/15/39 (Call 09/15/38) | 75 | 91,017 | ||||||
4.90%, 03/15/49 (Call 09/15/48) | 815 | 1,024,500 | ||||||
5.88%, 08/01/33 | 75 | 97,011 | ||||||
Massachusetts Mutual Life Insurance Co. | 1,181 | 1,169,065 | ||||||
4.90%, 04/01/77(b) | 105 | 130,608 | ||||||
MetLife Capital Trust IV, 7.88%, 12/15/67 (Call 12/15/32)(b) | 155 | 205,762 | ||||||
MetLife Inc. | 1,141 | 1,293,031 | ||||||
4.13%, 08/13/42 | 916 | 1,049,022 | ||||||
4.60%, 05/13/46 (Call 11/13/45) | 455 | 560,532 | ||||||
4.88%, 11/13/43 | 960 | 1,196,386 | ||||||
5.70%, 06/15/35 | 825 | 1,111,998 | ||||||
5.88%, 02/06/41 | 725 | 991,655 | ||||||
6.38%, 06/15/34 | 510 | 729,079 | ||||||
6.40%, 12/15/66 (Call 12/15/31) | 1,103 | 1,339,715 | ||||||
6.50%, 12/15/32 | 550 | 770,054 | ||||||
9.25%, 04/08/38 (Call 04/08/33)(b) | 125 | 182,264 | ||||||
10.75%, 08/01/69 (Call 08/01/34) | 126 | 207,212 | ||||||
Series N, 4.72%, 12/15/44 | 820 | 1,005,283 | ||||||
Mutual of Omaha Insurance Co., 6.80%, 06/15/36(b) | 75 | 98,965 | ||||||
Nationwide Financial Services Inc., | 300 | 353,730 | ||||||
Nationwide Mutual Insurance Co. | 1,000 | 1,160,187 | ||||||
8.25%, 12/01/31(b) | 200 | 295,304 | ||||||
9.38%, 08/15/39(b) | 435 | 752,399 | ||||||
New York Life Insurance Co. | 275 | 327,120 | ||||||
5.88%, 05/15/33(b) | 1,410 | 1,888,325 | ||||||
6.75%, 11/15/39(b) | 1,070 | 1,593,371 | ||||||
Northwestern Mutual Life Insurance Co. (The) | 1,624 | 1,681,642 | ||||||
3.85%, 09/30/47 (Call 03/30/47)(b) | 700 | 755,918 | ||||||
Ohio National Financial Services Inc., 6.63%, 05/01/31(b) | 150 | 169,950 | ||||||
Ohio National Life Insurance Co. (The), 6.88%, 06/15/42(b) | 300 | 341,401 | ||||||
Pacific Life Insurance Co., 4.30%, 10/24/67 (Call 10/24/47)(b)(c)(d) | 1,000 | 1,048,480 |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
Principal Financial Group Inc. | $ | 103 | $ | 115,273 | ||||
4.35%, 05/15/43 | 325 | 361,977 | ||||||
4.63%, 09/15/42 | 40 | 46,051 | ||||||
6.05%, 10/15/36 | 191 | 250,806 | ||||||
Progressive Corp. (The) | 185 | 200,128 | ||||||
4.13%, 04/15/47 (Call 10/15/46) | 618 | 723,542 | ||||||
4.20%, 03/15/48 (Call 09/15/47) | 940 | 1,111,822 | ||||||
4.35%, 04/25/44 | 171 | 203,430 | ||||||
6.25%, 12/01/32 | 220 | 306,631 | ||||||
Prudential Financial Inc. | 25 | 26,184 | ||||||
3.91%, 12/07/47 (Call 06/07/47) | 859 | 927,011 | ||||||
3.94%, 12/07/49 (Call 06/07/49) | 1,130 | 1,235,219 | ||||||
4.35%, 02/25/50 (Call 08/25/49) | 1,209 | 1,397,409 | ||||||
4.42%, 03/27/48 (Call 09/27/47)(a) | 475 | 553,398 | ||||||
4.60%, 05/15/44 | 1,080 | 1,276,308 | ||||||
5.70%, 12/14/36 | 760 | 1,006,447 | ||||||
6.63%, 06/21/40 | 150 | 216,608 | ||||||
Series D, 6.63%, 12/01/37(a) | 65 | 92,312 | ||||||
Securian Financial Group Inc., 4.80%, 04/15/48(b) | 315 | 371,085 | ||||||
Selective Insurance Group Inc., 5.38%, 03/01/49 (Call 09/01/48) | 230 | 267,511 | ||||||
Teachers Insurance & Annuity Association of America | 2,710 | 3,137,218 | ||||||
4.90%, 09/15/44(b) | 826 | 1,038,224 | ||||||
6.85%, 12/16/39(b) | 60 | 89,023 | ||||||
Transatlantic Holdings Inc., 8.00%, 11/30/39 | 230 | 342,680 | ||||||
Travelers Companies Inc. (The) | 515 | 575,774 | ||||||
4.00%, 05/30/47 (Call 11/30/46)(a) | 207 | 239,030 | ||||||
4.05%, 03/07/48 (Call 09/07/47) | 475 | 554,137 | ||||||
4.10%, 03/04/49 (Call 09/04/48)(a) | 565 | 666,454 | ||||||
4.30%, 08/25/45 (Call 02/25/45) | 390 | 470,039 | ||||||
4.60%, 08/01/43 | 91 | 112,591 | ||||||
5.35%, 11/01/40 | 813 | 1,084,584 | ||||||
6.25%, 06/15/37 | 700 | 1,002,513 | ||||||
6.75%, 06/20/36 | 550 | 806,720 | ||||||
Travelers Property Casualty Corp., 6.38%, 03/15/33 | 390 | 547,654 | ||||||
Unum Group | 200 | 192,948 | ||||||
5.75%, 08/15/42 | 360 | 406,961 | ||||||
Voya Financial Inc. | 100 | 114,426 | ||||||
5.70%, 07/15/43 | 530 | 672,229 | ||||||
Western & Southern Financial Group Inc., 5.75%, 07/15/33(b) | 200 | 256,925 | ||||||
Western & Southern Life Insurance Co. (The), 5.15%, 01/15/49 (Call 07/15/48)(a)(b) | 150 | 184,474 | ||||||
Willis North America Inc. | 195 | 193,220 | ||||||
5.05%, 09/15/48 (Call 03/15/48) | 680 | 795,442 | ||||||
WR Berkley Corp., 4.75%, 08/01/44 | 210 | 238,889 | ||||||
XLIT Ltd., 5.50%, 03/31/45(a) | 661 | 848,063 | ||||||
|
| |||||||
95,334,304 | ||||||||
Internet — 0.9% | ||||||||
Alibaba Group Holding Ltd. | 1,115 | 1,197,293 | ||||||
4.20%, 12/06/47 (Call 06/06/47) | 1,050 | 1,178,803 |
42 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Internet (continued) | ||||||||
4.40%, 12/06/57 (Call 06/06/57) | $ | 435 | $ | 497,853 | ||||
4.50%, 11/28/34 (Call 05/28/34) | 625 | 713,156 | ||||||
Amazon.com Inc. | 2,377 | 2,702,791 | ||||||
4.05%, 08/22/47 (Call 02/22/47) | 3,003 | 3,569,809 | ||||||
4.25%, 08/22/57 (Call 02/22/57) | 1,240 | 1,518,367 | ||||||
4.80%, 12/05/34 (Call 06/05/34) | 1,785 | 2,228,427 | ||||||
4.95%, 12/05/44 (Call 06/05/44) | 1,105 | 1,444,669 | ||||||
eBay Inc., 4.00%, 07/15/42 (Call 01/15/42) | 857 | 820,395 | ||||||
Expedia Group Inc., 3.25%, 02/15/30 (Call 11/15/29)(b) | 165 | 165,112 | ||||||
Tencent Holdings Ltd. | 875 | 931,263 | ||||||
4.53%, 04/11/49 (Call 10/11/48)(a)(b) | 200 | 236,528 | ||||||
|
| |||||||
17,204,466 | ||||||||
Iron & Steel — 0.3% | ||||||||
ArcelorMittal | 560 | 666,294 | ||||||
7.00%, 10/15/39 | 440 | 537,947 | ||||||
Nucor Corp. | 325 | 374,980 | ||||||
5.20%, 08/01/43 (Call 02/01/43) | 719 | 901,730 | ||||||
6.40%, 12/01/37 | 380 | 522,086 | ||||||
Vale Overseas Ltd. | 1,000 | 1,263,875 | ||||||
6.88%, 11/10/39 | 1,270 | 1,623,616 | ||||||
Vale SA, 5.63%, 09/11/42 | 405 | 458,916 | ||||||
|
| |||||||
6,349,444 | ||||||||
Leisure Time — 0.0% | ||||||||
Harley-Davidson Inc., 4.63%, 07/28/45 (Call 01/28/45) | 225 | 233,706 | ||||||
|
| |||||||
Lodging — 0.0% | ||||||||
Marriott International Inc./MD, 4.50%, 10/01/34 | 245 | 272,412 | ||||||
|
| |||||||
Machinery — 0.5% | ||||||||
ABB Finance USA Inc., 4.38%, 05/08/42 | 412 | 500,028 | ||||||
Caterpillar Inc. | 455 | 464,108 | ||||||
3.80%, 08/15/42 | 1,250 | 1,398,506 | ||||||
4.30%, 05/15/44 (Call 11/15/43) | 460 | 551,742 | ||||||
4.75%, 05/15/64 (Call 11/15/63) | 740 | 924,428 | ||||||
5.20%, 05/27/41 | 595 | 779,254 | ||||||
5.30%, 09/15/35 | 86 | 109,443 | ||||||
6.05%, 08/15/36(a) | 111 | 152,599 | ||||||
Crane Co., 4.20%, 03/15/48 (Call 09/15/47) | 45 | 46,320 | ||||||
Cummins Inc., 4.88%, 10/01/43 (Call 04/01/43) | 305 | 384,054 | ||||||
Deere & Co. | 305 | 293,209 | ||||||
3.90%, 06/09/42 (Call 12/09/41) | 1,713 | 1,952,312 | ||||||
7.13%, 03/03/31 | 188 | 268,026 | ||||||
Dover Corp., 5.38%, 03/01/41 (Call 12/01/40) | 460 | 573,422 | ||||||
Rockwell Automation Inc., 4.20%, 03/01/49 | ||||||||
(Call 09/01/48) | 779 | 930,218 | ||||||
Xylem Inc./NY, 4.38%, 11/01/46 (Call 05/01/46) | 225 | 250,762 | ||||||
|
| |||||||
9,578,431 | ||||||||
Manufacturing — 1.4% | ||||||||
3M Co. | 1,050 | 1,047,000 | ||||||
3.25%, 08/26/49 (Call 02/26/49) | 665 | 672,939 | ||||||
3.63%, 10/15/47 (Call 04/15/47)(a) | 911 | 984,297 |
Security | Par (000) | Value | ||||||
Manufacturing (continued) | ||||||||
3.88%, 06/15/44 | $ | 150 | $ | 165,057 | ||||
4.00%, 09/14/48 (Call 03/14/48)(a) | 543 | 616,091 | ||||||
5.70%, 03/15/37 | 215 | 289,710 | ||||||
Eaton Corp. | 1,050 | 1,207,795 | ||||||
4.15%, 11/02/42 | 865 | 968,853 | ||||||
General Electric Co. | 202 | 206,189 | ||||||
4.50%, 03/11/44 | 175 | 189,659 | ||||||
5.88%, 01/14/38 | 1,913 | 2,289,472 | ||||||
6.15%, 08/07/37 | 1,219 | 1,499,064 | ||||||
6.88%, 01/10/39 | 1,345 | 1,780,652 | ||||||
Series A, 6.75%, 03/15/32 | 2,270 | 2,891,504 | ||||||
Illinois Tool Works Inc. | 1,495 | 1,744,949 | ||||||
4.88%, 09/15/41 (Call 03/15/41)(a) | 200 | 258,237 | ||||||
Ingersoll-Rand Global Holding Co. Ltd. | 125 | 138,005 | ||||||
5.75%, 06/15/43 | 575 | 737,107 | ||||||
Ingersoll-Rand Luxembourg Finance SA | 405 | 461,841 | ||||||
4.65%, 11/01/44 (Call 05/01/44) | 165 | 188,147 | ||||||
Parker-Hannifin Corp. | 460 | 497,540 | ||||||
4.10%, 03/01/47 (Call 09/01/46) | 270 | 296,692 | ||||||
4.20%, 11/21/34 (Call 05/21/34) | 312 | 350,969 | ||||||
4.45%, 11/21/44 (Call 05/21/44) | 1,060 | 1,180,490 | ||||||
Series A, 6.25%, 05/15/38 | 455 | 607,640 | ||||||
Siemens Financieringsmaatschappij NV | 1,160 | 1,197,484 | ||||||
4.20%, 03/16/47(b) | 1,445 | 1,723,084 | ||||||
4.40%, 05/27/45(b) | 663 | 799,406 | ||||||
|
| |||||||
24,989,873 | ||||||||
Media — 4.8% | ||||||||
CBS Corp. | 780 | 851,295 | ||||||
4.85%, 07/01/42 (Call 01/01/42) | 285 | 316,430 | ||||||
4.90%, 08/15/44 (Call 02/15/44) | 560 | 626,810 | ||||||
5.50%, 05/15/33 | 325 | 395,355 | ||||||
5.90%, 10/15/40 (Call 04/15/40)(a) | 115 | 141,160 | ||||||
7.88%, 07/30/30 | 415 | 585,193 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 500 | 511,824 | ||||||
5.13%, 07/01/49 (Call 01/01/49) | 465 | 496,754 | ||||||
5.38%, 04/01/38 (Call 10/01/37) | 849 | 956,621 | ||||||
5.38%, 05/01/47 (Call 11/01/46) | 2,205 | 2,422,451 | ||||||
5.75%, 04/01/48 (Call 10/01/47) | 2,212 | 2,542,346 | ||||||
6.38%, 10/23/35 (Call 04/23/35) | 1,720 | 2,114,708 | ||||||
6.48%, 10/23/45 (Call 04/23/45) | 2,205 | 2,711,552 | ||||||
6.83%, 10/23/55 (Call 04/23/55)(a) | 430 | 549,278 | ||||||
Comcast Corp. | 1,305 | 1,325,909 | ||||||
3.40%, 07/15/46 (Call 01/15/46) | 1,090 | 1,107,083 | ||||||
3.45%, 02/01/50 (Call 08/01/49) | 250 | 256,526 | ||||||
3.90%, 03/01/38 (Call 09/01/37) | 1,083 | 1,187,273 | ||||||
3.97%, 11/01/47 (Call 05/01/47) | 1,800 | 1,971,786 | ||||||
4.00%, 08/15/47 (Call 02/15/47) | 930 | 1,027,548 | ||||||
4.00%, 03/01/48 (Call 09/01/47) | 893 | 984,000 | ||||||
4.00%, 11/01/49 (Call 05/01/49) | 1,660 | 1,841,102 |
SCHEDULE OF INVESTMENTS | 43 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
4.05%, 11/01/52 (Call 05/01/52) | $ | 1,075 | $ | 1,196,215 | ||||
4.20%, 08/15/34 (Call 02/15/34) | 1,001 | 1,156,595 | ||||||
4.25%, 10/15/30 (Call 07/15/30) | 1,505 | 1,728,499 | ||||||
4.25%, 01/15/33 | 2,580 | 2,976,743 | ||||||
4.40%, 08/15/35 (Call 02/15/35) | 605 | 701,219 | ||||||
4.50%, 01/15/43 | 1,105 | 1,292,783 | ||||||
4.60%, 10/15/38 (Call 04/15/38) | 2,215 | 2,631,906 | ||||||
4.60%, 08/15/45 (Call 02/15/45) | 895 | 1,072,238 | ||||||
4.65%, 07/15/42 | 625 | 746,153 | ||||||
4.70%, 10/15/48 (Call 04/15/48) | 2,830 | 3,484,971 | ||||||
4.75%, 03/01/44 | 1,100 | 1,335,965 | ||||||
4.95%, 10/15/58 (Call 04/15/58) | 1,135 | 1,466,119 | ||||||
5.65%, 06/15/35 | 296 | 383,441 | ||||||
6.40%, 05/15/38 | 87 | 122,856 | ||||||
6.45%, 03/15/37 | 270 | 379,057 | ||||||
6.50%, 11/15/35 | 635 | 894,976 | ||||||
6.55%, 07/01/39 | 80 | 117,312 | ||||||
6.95%, 08/15/37 | 680 | 995,924 | ||||||
7.05%, 03/15/33 | 621 | 890,458 | ||||||
Cox Communications Inc. | ||||||||
4.60%, 08/15/47 (Call 02/15/47)(b) | 865 | 944,635 | ||||||
4.70%, 12/15/42(b) | 175 | 188,295 | ||||||
8.38%, 03/01/39(a)(b) | 800 | 1,190,109 | ||||||
Discovery Communications LLC | ||||||||
4.88%, 04/01/43 | 645 | 668,922 | ||||||
4.95%, 05/15/42 | 665 | 702,420 | ||||||
5.00%, 09/20/37 (Call 03/20/37) | 1,290 | 1,400,876 | ||||||
5.20%, 09/20/47 (Call 03/20/47) | 1,220 | 1,334,138 | ||||||
5.30%, 05/15/49 (Call 11/15/48) | 820 | 921,858 | ||||||
6.35%, 06/01/40 | 625 | 762,542 | ||||||
Fox Corp. | ||||||||
5.48%, 01/25/39 (Call 07/25/38)(b) | 1,733 | 2,131,140 | ||||||
5.58%, 01/25/49 (Call 07/25/48)(b) | 1,125 | 1,412,913 | ||||||
Grupo Televisa SAB | ||||||||
5.00%, 05/13/45 (Call 11/13/44) | 975 | 1,035,633 | ||||||
5.25%, 05/24/49 (Call 11/24/48)(a) | 500 | 546,875 | ||||||
6.13%, 01/31/46 (Call 07/31/45)(a) | 200 | 244,000 | ||||||
6.63%, 01/15/40 | 429 | 536,250 | ||||||
NBCUniversal Media LLC | ||||||||
4.45%, 01/15/43(a) | 660 | 762,874 | ||||||
5.95%, 04/01/41(a) | 735 | 1,013,154 | ||||||
Thomson Reuters Corp. | ||||||||
5.50%, 08/15/35 | 150 | 170,424 | ||||||
5.65%, 11/23/43 (Call 05/23/43) | 235 | 281,974 | ||||||
5.85%, 04/15/40 | 375 | 449,058 | ||||||
Time Warner Cable LLC | ||||||||
4.50%, 09/15/42 (Call 03/15/42)(a) | 700 | 700,583 | ||||||
5.50%, 09/01/41 (Call 03/01/41) | 895 | 986,844 | ||||||
5.88%, 11/15/40 (Call 05/15/40) | 1,275 | 1,457,158 | ||||||
6.55%, 05/01/37 | 1,072 | 1,300,508 | ||||||
6.75%, 06/15/39 | 1,445 | 1,774,559 | ||||||
7.30%, 07/01/38 | 1,536 | 1,958,109 | ||||||
Time Warner Entertainment Co. LP, 8.38%, 07/15/33 | 500 | 693,865 | ||||||
TWDC Enterprises 18 Corp. | ||||||||
3.00%, 07/30/46 | 350 | 349,972 | ||||||
3.70%, 12/01/42 | 300 | 334,578 | ||||||
4.13%, 06/01/44 | 1,125 | 1,345,617 | ||||||
4.38%, 08/16/41 | 400 | 483,620 | ||||||
Series B, 7.00%, 03/01/32 | 200 | 294,804 | ||||||
Series E, 4.13%, 12/01/41 | 250 | 293,661 |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
Viacom Inc. | ||||||||
4.38%, 03/15/43 | $ | 1,200 | $ | 1,237,539 | ||||
5.25%, 04/01/44 (Call 10/01/43)(a) | 735 | 833,451 | ||||||
5.85%, 09/01/43 (Call 03/01/43) | 1,240 | 1,518,097 | ||||||
6.88%, 04/30/36 | 1,010 | 1,333,388 | ||||||
Walt Disney Co. (The) | ||||||||
2.75%, 09/01/49 (Call 03/01/49) | 1,150 | 1,092,974 | ||||||
4.75%, 09/15/44 (Call 03/15/44)(b) | 728 | 930,912 | ||||||
4.75%, 11/15/46 (Call 05/15/46)(b) | 20 | 25,860 | ||||||
4.95%, 10/15/45 (Call 04/15/45)(b) | 495 | 657,640 | ||||||
5.40%, 10/01/43(b) | 400 | 555,149 | ||||||
6.20%, 12/15/34(b) | 760 | 1,075,362 | ||||||
6.40%, 12/15/35(a)(b) | 552 | 794,416 | ||||||
6.55%, 03/15/33(b) | 275 | 391,358 | ||||||
6.65%, 11/15/37(b) | 780 | 1,167,298 | ||||||
|
| |||||||
88,781,846 | ||||||||
Metal Fabricate & Hardware — 0.1% | ||||||||
Precision Castparts Corp. | ||||||||
3.90%, 01/15/43 (Call 07/15/42) | 491 | 545,345 | ||||||
4.38%, 06/15/45 (Call 12/15/44) | 406 | 481,368 | ||||||
Valmont Industries Inc. | ||||||||
5.00%, 10/01/44 (Call 04/01/44) | 410 | 430,211 | ||||||
5.25%, 10/01/54 (Call 04/01/54) | 460 | 472,609 | ||||||
|
| |||||||
1,929,533 | ||||||||
Mining — 1.7% | ||||||||
Barrick Gold Corp. | ||||||||
5.25%, 04/01/42 | 937 | 1,144,860 | ||||||
6.45%, 10/15/35 | 70 | 90,496 | ||||||
Barrick North America Finance LLC | ||||||||
5.70%, 05/30/41 | 486 | 618,279 | ||||||
5.75%, 05/01/43 | 1,264 | 1,652,234 | ||||||
7.50%, 09/15/38 | 222 | 310,825 | ||||||
Barrick PD Australia Finance Pty Ltd., 5.95%, 10/15/39 | 374 | 477,187 | ||||||
BHP Billiton Finance USA Ltd. | ||||||||
4.13%, 02/24/42 | 624 | 723,314 | ||||||
5.00%, 09/30/43 | 2,097 | 2,739,301 | ||||||
Corp. Nacional del Cobre de Chile | ||||||||
4.25%, 07/17/42(b) | 1,150 | 1,230,859 | ||||||
4.38%, 02/05/49 (Call 08/05/48)(b) | 1,475 | 1,628,492 | ||||||
4.50%, 08/01/47 (Call 02/01/47)(b) | 1,050 | 1,176,000 | ||||||
4.88%, 11/04/44 | 45 | 52,734 | ||||||
5.63%, 10/18/43(b) | 1,400 | 1,795,063 | ||||||
Glencore Canada Corp., 6.20%, 06/15/35 | 35 | 40,048 | ||||||
Glencore Finance Canada Ltd. | ||||||||
5.55%, 10/25/42(b) | 225 | 241,157 | ||||||
6.00%, 11/15/41(b) | 135 | 152,901 | ||||||
6.90%, 11/15/37(b) | 100 | 123,519 | ||||||
Indonesia Asahan Aluminium Persero PT, 6.76%, 11/15/48(b) | 800 | 1,026,000 | ||||||
Industrias Penoles SAB de CV, 5.65%, 09/12/49 (Call 03/12/49) | 400 | 412,156 | ||||||
Kinross Gold Corp., 6.88%, 09/01/41 (Call 03/01/41) | 40 | 46,300 | ||||||
Minera Mexico SA de CV, 4.50%, 01/26/50 (Call 07/26/49)(b) | 500 | 488,475 | ||||||
Newmont Goldcorp Corp. | ||||||||
4.88%, 03/15/42 (Call 09/15/41) | 498 | 589,473 | ||||||
5.45%, 06/09/44 (Call 12/09/43) | 704 | 886,033 | ||||||
5.88%, 04/01/35 | 250 | 320,978 | ||||||
6.25%, 10/01/39 | 1,053 | 1,402,804 |
44 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Mining (continued) | ||||||||
Rio Tinto Alcan Inc. | $ | 136 | $ | 176,637 | ||||
6.13%, 12/15/33 | 501 | 680,683 | ||||||
7.25%, 03/15/31 | 1,016 | 1,419,412 | ||||||
Rio Tinto Finance USA Ltd., 5.20%, 11/02/40 | 465 | 604,319 | ||||||
Rio Tinto Finance USA PLC | 950 | 1,097,419 | ||||||
4.75%, 03/22/42 (Call 09/22/41)(a) | 415 | 515,840 | ||||||
Southern Copper Corp. | 805 | 902,103 | ||||||
5.88%, 04/23/45 | 1,195 | 1,445,278 | ||||||
6.75%, 04/16/40 | 785 | 1,017,802 | ||||||
7.50%, 07/27/35 | 595 | 794,697 | ||||||
Teck Resources Ltd. | 150 | 148,384 | ||||||
5.40%, 02/01/43 (Call 08/01/42) | 385 | 391,880 | ||||||
6.00%, 08/15/40 (Call 02/15/40) | 555 | 600,165 | ||||||
6.13%, 10/01/35 | 840 | 948,020 | ||||||
6.25%, 07/15/41 (Call 01/15/41) | 470 | 523,760 | ||||||
|
| |||||||
30,635,887 | ||||||||
Oil & Gas — 7.6% | ||||||||
Apache Corp. | 415 | 404,160 | ||||||
4.25%, 01/15/44 (Call 07/15/43) | 973 | 831,421 | ||||||
4.75%, 04/15/43 (Call 10/15/42) | 1,090 | 994,528 | ||||||
5.10%, 09/01/40 (Call 03/01/40) | 1,075 | 1,026,600 | ||||||
5.25%, 02/01/42 (Call 08/01/41) | 455 | 442,399 | ||||||
5.35%, 07/01/49 (Call 01/01/49) | 400 | 387,233 | ||||||
7.75%, 12/15/29 | 55 | 68,683 | ||||||
Burlington Resources LLC | 410 | 554,157 | ||||||
7.20%, 08/15/31 | 350 | 496,650 | ||||||
7.40%, 12/01/31 | 345 | 497,500 | ||||||
Canadian Natural Resources Ltd. | 725 | 848,756 | ||||||
5.85%, 02/01/35 | 150 | 181,797 | ||||||
6.25%, 03/15/38 | 1,440 | 1,820,769 | ||||||
6.45%, 06/30/33 | 255 | 326,413 | ||||||
6.50%, 02/15/37 | 175 | 225,043 | ||||||
6.75%, 02/01/39 | 185 | 246,111 | ||||||
7.20%, 01/15/32 | 300 | 403,630 | ||||||
Cenovus Energy Inc. | 545 | 589,744 | ||||||
5.40%, 06/15/47 (Call 12/15/46)(a) | 635 | 712,780 | ||||||
6.75%, 11/15/39 | 1,013 | 1,240,996 | ||||||
CNOOC Finance 2013 Ltd., 4.25%, 05/09/43 | 400 | 455,750 | ||||||
CNOOC Finance 2015 Australia Pty Ltd., 4.20%, 05/05/45(a) | 400 | 452,776 | ||||||
CNOOC Nexen Finance 2014 ULC, 4.88%, 04/30/44 | 700 | 868,035 | ||||||
CNPC HK Overseas Capital Ltd., 5.95%, 04/28/41 | 400 | 556,000 | ||||||
Concho Resources Inc. | 245 | 275,467 | ||||||
4.88%, 10/01/47 (Call 04/01/47) | 1,110 | 1,258,673 | ||||||
Conoco Funding Co., 7.25%, 10/15/31 | 630 | 895,995 | ||||||
ConocoPhillips | 493 | 650,974 | ||||||
5.90%, 05/15/38 | 635 | 868,691 | ||||||
6.50%, 02/01/39 | 2,220 | 3,251,805 | ||||||
ConocoPhillips Co. 4.30%, 11/15/44 | 1,084 | 1,269,378 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
5.95%, 03/15/46 (Call 09/15/45) | $ | 350 | $ | 507,081 | ||||
Continental Resources Inc./OK, 4.90%, 06/01/44 (Call 12/01/43) | 440 | 434,070 | ||||||
Devon Energy Corp. | 689 | 756,073 | ||||||
5.00%, 06/15/45 (Call 12/15/44) | 762 | 866,987 | ||||||
5.60%, 07/15/41 (Call 01/15/41) | 940 | 1,119,011 | ||||||
7.95%, 04/15/32 | 150 | 216,019 | ||||||
Ecopetrol SA | 1,580 | 1,821,098 | ||||||
7.38%, 09/18/43 | 700 | 930,563 | ||||||
Empresa Nacional del Petroleo, 4.50%, 09/14/47 (Call 03/14/47)(a)(b) | 750 | 786,328 | ||||||
Encana Corp. | 1,275 | 1,512,153 | ||||||
6.50%, 02/01/38 | 585 | 683,460 | ||||||
6.63%, 08/15/37(a) | 235 | 277,347 | ||||||
7.20%, 11/01/31 | 100 | 123,454 | ||||||
7.38%, 11/01/31 | 150 | 188,336 | ||||||
8.13%, 09/15/30 | 200 | 259,105 | ||||||
EOG Resources Inc. | 575 | 635,098 | ||||||
5.10%, 01/15/36 (Call 07/15/35)(a) | 195 | 236,395 | ||||||
Equinor ASA | 1,089 | 1,251,182 | ||||||
4.25%, 11/23/41 | 550 | 649,894 | ||||||
4.80%, 11/08/43 | 943 | 1,208,810 | ||||||
5.10%, 08/17/40 | 392 | 509,775 | ||||||
Exxon Mobil Corp. | 600 | 608,029 | ||||||
3.10%, 08/16/49 (Call 02/16/49)(a) | 850 | 865,734 | ||||||
3.57%, 03/06/45 (Call 09/06/44) | 847 | 915,676 | ||||||
4.11%, 03/01/46 (Call 09/01/45) | 1,774 | 2,115,161 | ||||||
Gazprom OAO Via Gaz Capital SA, 7.29%, 08/16/37(b) | 1,200 | 1,628,400 | ||||||
Hess Corp. | 947 | 1,061,536 | ||||||
5.80%, 04/01/47 (Call 10/01/46) | 315 | 365,956 | ||||||
6.00%, 01/15/40 | 885 | 1,007,714 | ||||||
7.13%, 03/15/33 | 300 | 370,824 | ||||||
7.30%, 08/15/31 | 650 | 818,988 | ||||||
Husky Energy Inc., 6.80%, 09/15/37 | 108 | 139,299 | ||||||
KazMunayGas National Co. JSC | 400 | 461,375 | ||||||
6.38%, 10/24/48(b) | 1,150 | 1,448,281 | ||||||
Marathon Oil Corp. | 765 | 857,196 | ||||||
6.60%, 10/01/37 | 424 | 520,823 | ||||||
6.80%, 03/15/32 | 511 | 643,709 | ||||||
Marathon Petroleum Corp. | 443 | 473,531 | ||||||
4.75%, 09/15/44 (Call 03/15/44) | 607 | 666,048 | ||||||
5.00%, 09/15/54 (Call 03/15/54) | 535 | 574,896 | ||||||
5.85%, 12/15/45 (Call 06/15/45) | 380 | 436,378 | ||||||
6.50%, 03/01/41 (Call 09/01/40) | 660 | 846,237 | ||||||
Motiva Enterprises LLC, 6.85%, 01/15/40(b) | 395 | 480,192 | ||||||
Nexen Inc. | 537 | 697,597 | ||||||
6.40%, 05/15/37 | 1,625 | 2,273,477 | ||||||
7.50%, 07/30/39 | 490 | 779,559 | ||||||
7.88%, 03/15/32 | 640 | 944,400 |
SCHEDULE OF INVESTMENTS | 45 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
Noble Energy Inc. | $ | 280 | $ | 298,491 | ||||
5.05%, 11/15/44 (Call 05/15/44) | 1,235 | 1,306,443 | ||||||
5.25%, 11/15/43 (Call 05/15/43) | 545 | 588,292 | ||||||
6.00%, 03/01/41 (Call 09/01/40) | 1,070 | 1,239,668 | ||||||
Occidental Petroleum Corp. | 810 | 776,978 | ||||||
4.20%, 03/15/48 (Call 09/15/47) | 590 | 574,346 | ||||||
4.30%, 08/15/39 (Call 02/15/39) | 470 | 478,548 | ||||||
4.40%, 04/15/46 (Call 10/15/45) | 958 | 952,083 | ||||||
4.40%, 08/15/49 (Call 02/15/49)(a) | 400 | 405,703 | ||||||
4.50%, 07/15/44 (Call 01/15/44) | 665 | 673,229 | ||||||
4.63%, 06/15/45 (Call 12/15/44) | 675 | 690,483 | ||||||
6.20%, 03/15/40 | 660 | 795,470 | ||||||
6.45%, 09/15/36 | 1,275 | 1,562,826 | ||||||
6.60%, 03/15/46 (Call 09/15/45) | 1,055 | 1,353,595 | ||||||
7.50%, 05/01/31 | 670 | 876,942 | ||||||
7.88%, 09/15/31 | 349 | 467,362 | ||||||
Pertamina Persero PT | 1,550 | 1,621,822 | ||||||
6.45%, 05/30/44(b) | 2,100 | 2,683,406 | ||||||
6.50%, 11/07/48(a)(b) | 980 | 1,281,044 | ||||||
Petroleos del Peru SA | 1,000 | 1,070,794 | ||||||
5.63%, 06/19/47(b) | 700 | 813,549 | ||||||
Petroleos Mexicanos | 835 | 748,160 | ||||||
5.63%, 01/23/46 | 1,025 | 918,759 | ||||||
6.35%, 02/12/48 | 2,080 | 1,990,300 | ||||||
6.38%, 01/23/45 | 2,725 | 2,648,155 | ||||||
6.50%, 06/02/41 | 2,005 | 1,984,950 | ||||||
6.63%, 06/15/35 | 2,700 | 2,751,732 | ||||||
6.63%, 06/15/38 | 345 | 340,688 | ||||||
6.75%, 09/21/47 | 3,515 | 3,498,633 | ||||||
6.84%, 01/23/30 (Call 10/23/29)(b) | 2,470 | 2,633,638 | ||||||
7.69%, 01/23/50 (Call 07/23/49)(b) | 2,905 | 3,151,344 | ||||||
Petronas Capital Ltd., 4.50%, 03/18/45(b) | 900 | 1,095,233 | ||||||
Phillips 66 | 1,109 | 1,288,870 | ||||||
4.88%, 11/15/44 (Call 05/15/44) | 1,105 | 1,324,938 | ||||||
5.88%, 05/01/42(a) | 1,206 | 1,608,533 | ||||||
Saudi Arabian Oil Co. | 2,805 | 3,003,510 | ||||||
4.38%, 04/16/49(b) | 2,400 | 2,610,000 | ||||||
Shell International Finance BV | 208 | 221,547 | ||||||
3.75%, 09/12/46 | 910 | 1,013,607 | ||||||
4.00%, 05/10/46(a) | 1,795 | 2,053,100 | ||||||
4.13%, 05/11/35 | 1,785 | 2,055,404 | ||||||
4.38%, 05/11/45 | 1,715 | 2,080,610 | ||||||
4.55%, 08/12/43 | 1,260 | 1,543,528 | ||||||
5.50%, 03/25/40 | 1,350 | 1,817,946 | ||||||
6.38%, 12/15/38 | 1,160 | 1,689,173 | ||||||
Sinopec Capital 2013 Ltd., 4.25%, 04/24/43 | 400 | 454,318 | ||||||
Sinopec Group Overseas Development 2012 Ltd., 4.88%, 05/17/42(b) | 700 | 865,375 | ||||||
Sinopec Group Overseas Development 2017 Ltd. | 535 | 589,854 | ||||||
4.25%, 04/12/47(b) | 600 | 687,483 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
Sinopec Group Overseas Development 2018 Ltd. | $ | 1,200 | $ | 1,264,500 | ||||
4.60%, 09/12/48(b) | 700 | 849,748 | ||||||
Suncor Energy Inc. | 765 | 819,040 | ||||||
5.35%, 07/15/33 | 125 | 155,240 | ||||||
5.95%, 12/01/34 | 25 | 32,754 | ||||||
5.95%, 05/15/35 | 291 | 373,171 | ||||||
6.50%, 06/15/38 | 985 | 1,353,260 | ||||||
6.80%, 05/15/38 | 739 | 1,039,942 | ||||||
6.85%, 06/01/39 | 980 | 1,374,585 | ||||||
7.15%, 02/01/32 | 385 | 532,179 | ||||||
Thaioil Treasury Center Co. Ltd., 5.38%, 11/20/48(b) | 600 | 789,474 | ||||||
Tosco Corp., 8.13%, 02/15/30 | 61 | 88,443 | ||||||
Total Capital International SA | 710 | 735,264 | ||||||
3.46%, 07/12/49 (Call 01/12/49) | 675 | 715,162 | ||||||
Valero Energy Corp. | 670 | 758,080 | ||||||
6.63%, 06/15/37 | 1,339 | 1,747,251 | ||||||
7.50%, 04/15/32 | 655 | 897,387 | ||||||
10.50%, 03/15/39(a) | 100 | 168,008 | ||||||
|
| |||||||
140,950,119 | ||||||||
Oil & Gas Services — 0.5% | ||||||||
Baker Hughes a GE Co. LLC, 5.13%, 09/15/40 | 475 | 543,239 | ||||||
Baker Hughes a GE Co. LLC/Baker HughesCo-Obligor Inc., 4.08%, 12/15/47 (Call 06/15/47) | 1,845 | 1,850,966 | ||||||
Halliburton Co. | 200 | 208,887 | ||||||
4.75%, 08/01/43 (Call 02/01/43) | 1,210 | 1,292,906 | ||||||
4.85%, 11/15/35 (Call 05/15/35) | 745 | 827,597 | ||||||
5.00%, 11/15/45 (Call 05/15/45) | 1,495 | 1,647,861 | ||||||
6.70%, 09/15/38 | 431 | 565,540 | ||||||
7.45%, 09/15/39(a) | 1,015 | 1,437,480 | ||||||
National Oilwell Varco Inc., 3.95%, 12/01/42 (Call 06/01/42) | 1,280 | 1,185,839 | ||||||
|
| |||||||
9,560,315 | ||||||||
Packaging & Containers — 0.1% | ||||||||
Sonoco Products Co., 5.75%, 11/01/40 | 624 | 770,640 | ||||||
WestRock MWV LLC | 151 | 208,525 | ||||||
8.20%, 01/15/30 | 195 | 270,001 | ||||||
WRKCo Inc., 4.20%, 06/01/32 (Call 03/01/32)(a) | 1,280 | 1,420,631 | ||||||
|
| |||||||
2,669,797 | ||||||||
Pharmaceuticals — 6.3% | ||||||||
AbbVie Inc. | 1,310 | 1,391,331 | ||||||
4.40%, 11/06/42 | 1,810 | 1,875,417 | ||||||
4.45%, 05/14/46 (Call 11/14/45) | 1,169 | 1,208,220 | ||||||
4.50%, 05/14/35 (Call 11/14/34) | 2,140 | 2,322,301 | ||||||
4.70%, 05/14/45 (Call 11/14/44) | 2,070 | 2,214,288 | ||||||
4.88%, 11/14/48 (Call 05/14/48)(a) | 1,295 | 1,429,767 | ||||||
Allergan Finance LLC, 4.63%, 10/01/42 (Call 04/01/42) | 400 | 418,009 | ||||||
Allergan Funding SCS | 1,840 | 1,967,896 | ||||||
4.75%, 03/15/45 (Call 09/15/44) | 894 | 951,527 | ||||||
4.85%, 06/15/44 (Call 12/15/43) | 1,060 | 1,141,624 |
46 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
AmerisourceBergen Corp. | $ | 200 | $ | 206,417 | ||||
4.30%, 12/15/47 (Call 06/15/47) | 530 | 548,295 | ||||||
AstraZeneca PLC | 745 | 828,533 | ||||||
4.38%, 11/16/45 | 1,335 | 1,578,593 | ||||||
4.38%, 08/17/48 (Call 02/17/48)(a) | 933 | 1,108,028 | ||||||
6.45%, 09/15/37 | 2,220 | 3,135,227 | ||||||
Bayer U.S. Finance II LLC | 300 | 283,832 | ||||||
4.20%, 07/15/34 (Call 01/15/34)(b) | 565 | 593,411 | ||||||
4.40%, 07/15/44 (Call 01/15/44)(b) | 675 | 674,230 | ||||||
4.63%, 06/25/38 (Call 12/25/37)(b) | 1,625 | 1,779,263 | ||||||
4.65%, 11/15/43 (Call 05/15/43)(b) | 74 | 74,364 | ||||||
4.70%, 07/15/64 (Call 01/15/64)(a)(b) | 1,100 | 1,059,081 | ||||||
4.88%, 06/25/48 (Call 12/25/47)(a)(b) | 1,275 | 1,421,650 | ||||||
5.50%, 07/30/35 | 100 | 114,927 | ||||||
Bristol-Myers Squibb Co. | 709 | 719,373 | ||||||
4.13%, 06/15/39 (Call 12/15/38)(b) | 2,180 | 2,483,663 | ||||||
4.25%, 10/26/49 (Call 04/26/49)(b) | 2,175 | 2,543,609 | ||||||
4.50%, 03/01/44 (Call 09/01/43)(a) | 690 | 821,207 | ||||||
Cardinal Health Inc. | 385 | 378,969 | ||||||
4.50%, 11/15/44 (Call 05/15/44) | 480 | 471,026 | ||||||
4.60%, 03/15/43 | 470 | 469,008 | ||||||
4.90%, 09/15/45 (Call 03/15/45) | 310 | 320,139 | ||||||
Cigna Corp. | 1,117 | 1,095,271 | ||||||
4.80%, 08/15/38 (Call 02/15/38) | 1,405 | 1,596,109 | ||||||
4.80%, 07/15/46 (Call 01/16/46)(b) | 1,710 | 1,907,115 | ||||||
4.90%, 12/15/48 (Call 06/15/48)(a) | 2,215 | 2,572,680 | ||||||
6.13%, 11/15/41(b) | 205 | 258,661 | ||||||
CVS Health Corp. | 4,165 | 4,622,794 | ||||||
4.88%, 07/20/35 (Call 01/20/35) | 1,360 | 1,546,114 | ||||||
5.05%, 03/25/48 (Call 09/25/47) | 5,050 | 5,820,787 | ||||||
5.13%, 07/20/45 (Call 01/20/45) | 2,480 | 2,858,594 | ||||||
5.30%, 12/05/43 (Call 06/05/43) | 783 | 911,995 | ||||||
Eli Lilly & Co. | 1,205 | 1,339,706 | ||||||
3.88%, 03/15/39 (Call 09/15/38)(a) | 774 | 896,849 | ||||||
3.95%, 05/15/47 (Call 11/15/46) | 695 | 812,989 | ||||||
3.95%, 03/15/49 (Call 09/15/48) | 1,040 | 1,216,473 | ||||||
4.15%, 03/15/59 (Call 09/15/58) | 968 | 1,158,243 | ||||||
5.55%, 03/15/37(a) | 376 | 506,725 | ||||||
5.95%, 11/15/37 | 400 | 565,436 | ||||||
GlaxoSmithKline Capital Inc. | 415 | 489,807 | ||||||
5.38%, 04/15/34 | 570 | 745,146 | ||||||
6.38%, 05/15/38 | 2,415 | 3,534,640 | ||||||
Johnson & Johnson | 900 | 972,432 | ||||||
3.50%, 01/15/48 (Call 07/15/47) | 641 | 706,860 | ||||||
3.55%, 03/01/36 (Call 09/01/35) | 1,024 | 1,128,062 | ||||||
3.63%, 03/03/37 (Call 09/03/36)(a) | 1,755 | 1,967,260 | ||||||
3.70%, 03/01/46 (Call 09/01/45) | 860 | 975,041 | ||||||
3.75%, 03/03/47 (Call 09/03/46) | 1,315 | 1,504,846 | ||||||
4.38%, 12/05/33 (Call 06/05/33) | 1,049 | 1,270,946 | ||||||
4.50%, 09/01/40(a) | 310 | 384,879 |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
4.50%, 12/05/43 (Call 06/05/43) | $ | 275 | $ | 343,987 | ||||
4.85%, 05/15/41 | 386 | 498,662 | ||||||
4.95%, 05/15/33 | 496 | 631,106 | ||||||
5.85%, 07/15/38(a) | 105 | 149,983 | ||||||
5.95%, 08/15/37 | 805 | 1,157,479 | ||||||
McKesson Corp., 4.88%, 03/15/44 (Call 09/15/43) | 330 | 363,550 | ||||||
Mead Johnson Nutrition Co. | 513 | 635,338 | ||||||
5.90%, 11/01/39 | 340 | 462,360 | ||||||
Merck & Co. Inc. | 595 | 661,787 | ||||||
3.70%, 02/10/45 (Call 08/10/44) | 1,910 | 2,143,781 | ||||||
3.90%, 03/07/39 (Call 09/07/38) | 1,565 | 1,813,557 | ||||||
4.00%, 03/07/49 (Call 09/07/48)(a) | 650 | 776,109 | ||||||
4.15%, 05/18/43 | 1,120 | 1,345,121 | ||||||
6.55%, 09/15/37 | 75 | 110,181 | ||||||
Merck Sharp & Dohme Corp., 5.75%, 11/15/36 | 25 | 33,867 | ||||||
Mylan Inc. | 395 | 423,800 | ||||||
5.40%, 11/29/43 (Call 05/29/43) | 830 | 888,622 | ||||||
Mylan NV, 5.25%, 06/15/46 (Call 12/15/45) | 590 | 632,692 | ||||||
Novartis Capital Corp. | 255 | 284,770 | ||||||
4.00%, 11/20/45 (Call 05/20/45) | 1,260 | 1,492,760 | ||||||
4.40%, 05/06/44 | 1,930 | 2,388,108 | ||||||
Perrigo Finance Unlimited Co., 4.90%, 12/15/44 (Call 06/15/44) | 645 | 604,198 | ||||||
Pfizer Inc. | 423 | 483,642 | ||||||
4.00%, 12/15/36 | 1,770 | 1,995,573 | ||||||
4.00%, 03/15/49 (Call 09/15/48) | 390 | 455,864 | ||||||
4.10%, 09/15/38 (Call 03/15/38) | 1,255 | 1,463,160 | ||||||
4.13%, 12/15/46 | 729 | 866,779 | ||||||
4.20%, 09/15/48 (Call 03/15/48) | 170 | 203,314 | ||||||
4.30%, 06/15/43 | 711 | 854,856 | ||||||
4.40%, 05/15/44 | 1,080 | 1,316,060 | ||||||
5.60%, 09/15/40 | 465 | 630,667 | ||||||
7.20%, 03/15/39 | 1,940 | 3,054,505 | ||||||
Wyeth LLC | 1,530 | 2,103,886 | ||||||
6.00%, 02/15/36 | 551 | 758,444 | ||||||
6.50%, 02/01/34 | 764 | 1,087,171 | ||||||
Zoetis Inc. | 611 | 668,959 | ||||||
4.45%, 08/20/48 (Call 02/20/48) | 330 | 395,454 | ||||||
4.70%, 02/01/43 (Call 08/01/42) | 1,081 | 1,310,608 | ||||||
|
| |||||||
115,390,445 | ||||||||
Pipelines — 4.4% | ||||||||
Abu Dhabi Crude Oil Pipeline LLC, | 2,065 | 2,390,238 | ||||||
Colonial Pipeline Co. | 20 | 23,006 | ||||||
7.63%, 04/15/32(b) | 85 | 124,206 | ||||||
Columbia Pipeline Group Inc., 5.80%, 06/01/45 (Call 12/01/44) | 560 | 705,489 | ||||||
El Paso Natural Gas Co. LLC, 8.38%, 06/15/32 | 50 | 69,283 | ||||||
Enable Midstream Partners LP, 5.00%, 05/15/44 (Call 11/15/43) | 260 | 229,199 | ||||||
Enbridge Energy Partners LP | 488 | 581,139 | ||||||
7.38%, 10/15/45 (Call 04/15/45) | 295 | 438,501 |
SCHEDULE OF INVESTMENTS | 47 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
Series B, 7.50%, 04/15/38 | $ | 250 | $ | 355,442 | ||||
Enbridge Inc. | 800 | 861,697 | ||||||
5.50%, 12/01/46 (Call 06/01/46)(a) | 545 | 690,188 | ||||||
Energy Transfer Operating LP | 650 | 679,010 | ||||||
5.15%, 02/01/43 (Call 08/01/42) | 350 | 357,796 | ||||||
5.15%, 03/15/45 (Call 09/15/44) | 591 | 616,108 | ||||||
5.30%, 04/15/47 (Call 10/15/46) | 1,500 | 1,580,071 | ||||||
5.95%, 10/01/43 (Call 04/01/43) | 505 | 563,952 | ||||||
6.05%, 06/01/41 (Call 12/01/40) | 50 | 56,391 | ||||||
6.13%, 12/15/45 (Call 06/15/45) | 985 | 1,149,838 | ||||||
6.25%, 04/15/49 (Call 10/15/48) | 1,175 | 1,403,273 | ||||||
6.50%, 02/01/42 (Call 08/01/41) | 775 | 928,220 | ||||||
6.63%, 10/15/36 | 205 | 248,832 | ||||||
7.50%, 07/01/38 | 290 | 369,458 | ||||||
8.25%, 11/15/29 (Call 08/15/29) | 165 | 213,000 | ||||||
Series 30Y, 6.00%, 06/15/48 (Call 12/15/47) | 855 | 989,966 | ||||||
Enterprise Products Operating LLC | 1,000 | 1,057,513 | ||||||
4.25%, 02/15/48 (Call 08/15/47) | 975 | 1,046,241 | ||||||
4.45%, 02/15/43 (Call 08/15/42) | 810 | 882,759 | ||||||
4.80%, 02/01/49 (Call 08/01/48) | 640 | 738,996 | ||||||
4.85%, 08/15/42 (Call 02/15/42) | 698 | 803,967 | ||||||
4.85%, 03/15/44 (Call 09/15/43) | 1,705 | 1,946,832 | ||||||
4.90%, 05/15/46 (Call 11/15/45) | 765 | 883,121 | ||||||
4.95%, 10/15/54 (Call 04/15/54) | 335 | 389,219 | ||||||
5.10%, 02/15/45 (Call 08/15/44) | 850 | 992,207 | ||||||
5.70%, 02/15/42 | 585 | 734,143 | ||||||
5.95%, 02/01/41 | 755 | 958,393 | ||||||
6.13%, 10/15/39 | 410 | 531,632 | ||||||
6.45%, 09/01/40 | 100 | 133,737 | ||||||
7.55%, 04/15/38 | 150 | 216,632 | ||||||
Series D, 6.88%, 03/01/33 | 405 | 554,680 | ||||||
Series H, 6.65%, 10/15/34 | 141 | 192,391 | ||||||
Series J, 5.75%, 03/01/35 | 75 | 89,086 | ||||||
EQM Midstream Partners LP, Series 30Y, | 245 | 224,343 | ||||||
Kinder Morgan Energy Partners LP | 340 | 353,014 | ||||||
5.00%, 08/15/42 (Call 02/15/42) | 580 | 628,544 | ||||||
5.00%, 03/01/43 (Call 09/01/42) | 475 | 510,659 | ||||||
5.40%, 09/01/44 (Call 03/01/44) | 465 | 522,214 | ||||||
5.50%, 03/01/44 (Call 09/01/43) | 795 | 908,464 | ||||||
5.80%, 03/15/35 | 300 | 351,719 | ||||||
6.38%, 03/01/41 | 415 | 507,189 | ||||||
6.50%, 02/01/37 | 50 | 61,540 | ||||||
6.50%, 09/01/39 | 342 | 422,709 | ||||||
6.55%, 09/15/40 | 235 | 291,022 | ||||||
6.95%, 01/15/38 | 860 | 1,111,741 | ||||||
7.30%, 08/15/33 | 51 | 68,287 | ||||||
7.40%, 03/15/31 | 148 | 192,080 | ||||||
7.50%, 11/15/40 | 370 | 509,019 | ||||||
7.75%, 03/15/32 | 100 | 134,805 | ||||||
Kinder Morgan Inc./DE | 1,251 | 1,369,937 | ||||||
5.20%, 03/01/48 (Call 09/01/47) | 725 | 824,722 | ||||||
5.30%, 12/01/34 (Call 06/01/34) | 1,135 | 1,306,282 | ||||||
5.55%, 06/01/45 (Call 12/01/44)(a) | 1,285 | 1,507,547 | ||||||
7.75%, 01/15/32 | 1,087 | 1,496,782 |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
Magellan Midstream Partners LP | $ | 450 | $ | 455,950 | ||||
4.20%, 03/15/45 (Call 09/15/44) | 255 | 255,235 | ||||||
4.20%, 10/03/47 (Call 04/03/47) | 590 | 616,908 | ||||||
4.25%, 09/15/46 (Call 03/15/46) | 235 | 249,432 | ||||||
4.85%, 02/01/49 (Call 08/01/48)(a) | 585 | 673,437 | ||||||
5.15%, 10/15/43 (Call 04/15/43) | 470 | 550,709 | ||||||
MPLX LP | 1,595 | 1,629,818 | ||||||
4.70%, 04/15/48 (Call 10/15/47) | 928 | 945,363 | ||||||
4.90%, 04/15/58 (Call 10/15/57) | 365 | 362,434 | ||||||
5.20%, 03/01/47 (Call 09/01/46)(a) | 769 | 825,069 | ||||||
5.20%, 12/01/47 (Call 06/01/47)(b) | 140 | 149,649 | ||||||
5.50%, 02/15/49 (Call 08/15/48) | 1,685 | 1,893,774 | ||||||
NGPL PipeCo LLC, 7.77%, 12/15/37(b) | 260 | 335,210 | ||||||
Northern Natural Gas Co., 4.30%, 01/15/49 (Call 07/15/48)(a)(b) | 270 | 312,512 | ||||||
ONEOK Inc. | 1,070 | 1,059,103 | ||||||
4.95%, 07/13/47 (Call 01/06/47) | 385 | 416,878 | ||||||
5.20%, 07/15/48 (Call 01/15/48) | 1,044 | 1,154,056 | ||||||
6.00%, 06/15/35(a) | 230 | 267,908 | ||||||
ONEOK Partners LP | 305 | 362,178 | ||||||
6.20%, 09/15/43 (Call 03/15/43) | 295 | 360,770 | ||||||
6.65%, 10/01/36(a) | 210 | 258,937 | ||||||
6.85%, 10/15/37 | 300 | 383,034 | ||||||
Phillips 66 Partners LP | 110 | 117,101 | ||||||
4.90%, 10/01/46 (Call 04/01/46) | 690 | 765,237 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | 220 | 193,472 | ||||||
4.70%, 06/15/44 (Call 12/15/43) | 440 | 410,882 | ||||||
4.90%, 02/15/45 (Call 08/15/44) | 740 | 711,073 | ||||||
5.15%, 06/01/42 (Call 12/01/41) | 955 | 934,249 | ||||||
6.65%, 01/15/37 | 334 | 385,788 | ||||||
Rockies Express Pipeline LLC | 50 | 52,755 | ||||||
7.50%, 07/15/38(b) | 260 | 287,625 | ||||||
Sabal Trail Transmission LLC | 205 | 233,559 | ||||||
4.83%, 05/01/48 (Call 11/01/47)(b) | 165 | 189,767 | ||||||
Southern Natural Gas Co. LLC | 160 | 177,204 | ||||||
8.00%, 03/01/32 | 75 | 107,868 | ||||||
Spectra Energy Partners LP | 490 | 537,153 | ||||||
5.95%, 09/25/43 (Call 03/25/43) | 350 | 432,702 | ||||||
Sunoco Logistics Partners Operations LP | 250 | 249,164 | ||||||
5.30%, 04/01/44 (Call 10/01/43) | 686 | 727,835 | ||||||
5.35%, 05/15/45 (Call 11/15/44) | 665 | 712,304 | ||||||
5.40%, 10/01/47 (Call 04/01/47) | 1,260 | 1,353,773 | ||||||
6.10%, 02/15/42 | 225 | 254,163 | ||||||
Texas Eastern Transmission LP | 440 | 465,930 | ||||||
7.00%, 07/15/32 | 340 | 453,187 | ||||||
TransCanada PipeLines Ltd. | 1,420 | 1,620,969 | ||||||
4.75%, 05/15/38 (Call 11/15/37) | 240 | 271,717 |
48 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
4.88%, 05/15/48 (Call 11/15/47) | $ | 745 | $ | 865,215 | ||||
5.00%, 10/16/43 (Call 04/16/43) | 841 | 969,804 | ||||||
5.10%, 03/15/49 (Call 09/15/48)(a) | 1,145 | 1,374,587 | ||||||
5.60%, 03/31/34 | 150 | 183,627 | ||||||
5.85%, 03/15/36 | 150 | 184,275 | ||||||
6.10%, 06/01/40 | 447 | 577,320 | ||||||
6.20%, 10/15/37 | 853 | 1,093,653 | ||||||
7.25%, 08/15/38(a) | 430 | 610,654 | ||||||
7.63%, 01/15/39 | 759 | 1,122,069 | ||||||
Transcontinental Gas Pipe Line Co. LLC | 300 | 315,942 | ||||||
4.60%, 03/15/48 (Call 09/15/47)(a) | 730 | 787,655 | ||||||
5.40%, 08/15/41 (Call 02/15/41) | 151 | 177,644 | ||||||
Western Midstream Operating LP | 580 | 491,578 | ||||||
5.45%, 04/01/44 (Call 10/01/43) | 725 | 630,185 | ||||||
5.50%, 08/15/48 (Call 02/15/48) | 225 | 195,128 | ||||||
Williams Companies Inc. (The) | 475 | 508,615 | ||||||
4.90%, 01/15/45 (Call 07/15/44) | 455 | 479,953 | ||||||
5.10%, 09/15/45 (Call 03/15/45) | 1,494 | 1,638,920 | ||||||
5.40%, 03/04/44 (Call 09/04/43) | 735 | 815,790 | ||||||
5.80%, 11/15/43 (Call 05/15/43) | 75 | 87,004 | ||||||
6.30%, 04/15/40 | 1,310 | 1,590,155 | ||||||
8.75%, 03/15/32 | 125 | 178,706 | ||||||
Series A, 7.50%, 01/15/31(a) | 105 | 137,725 | ||||||
|
| |||||||
81,258,516 | ||||||||
Private Equity — 0.1% | ||||||||
Apollo Management Holdings LP, | 85 | 98,041 | ||||||
Carlyle Finance LLC, 5.65%, 09/15/48 (Call 03/15/48)(a)(b) | 325 | 383,013 | ||||||
KKR Group Finance Co. III LLC, | 615 | 731,064 | ||||||
|
| |||||||
1,212,118 | ||||||||
Real Estate Investment Trusts — 1.3% | ||||||||
Alexandria Real Estate Equities Inc. | 1,140 | 1,198,287 | ||||||
4.00%, 02/01/50 (Call 08/01/49) | 200 | 219,785 | ||||||
4.70%, 07/01/30 (Call 04/01/30) | 965 | 1,124,415 | ||||||
4.85%, 04/15/49 (Call 10/15/48) | 190 | 236,827 | ||||||
AvalonBay Communities Inc. | 301 | 337,597 | ||||||
4.15%, 07/01/47 (Call 01/01/47) | 150 | 175,248 | ||||||
Camden Property Trust, 3.35%, 11/01/49 (Call 05/01/49) | 250 | 253,245 | ||||||
Crown Castle International Corp. | 500 | 508,073 | ||||||
4.00%, 11/15/49 (Call 05/15/49) | 175 | 182,773 | ||||||
5.20%, 02/15/49 (Call 08/15/48) | 437 | 544,891 | ||||||
ERP Operating LP | 968 | 1,161,284 | ||||||
4.50%, 06/01/45 (Call 12/01/44) | 465 | 562,603 | ||||||
Essex Portfolio LP, 4.50%, 03/15/48 (Call 09/15/47) | 225 | 263,332 | ||||||
Federal Realty Investment Trust | 475 | 496,662 | ||||||
4.50%, 12/01/44 (Call 06/01/44) | 397 | 472,685 | ||||||
GLP Capital LP/GLP Financing II Inc., | 150 | 151,721 | ||||||
HCP Inc., 6.75%, 02/01/41 (Call 08/01/40) | 165 | 234,781 |
Security | Par (000) | Value | ||||||
Real Estate Investment Trusts (continued) | ||||||||
Kimco Realty Corp. | $ | 685 | $ | 678,295 | ||||
4.25%, 04/01/45 (Call 10/01/44) | 355 | 384,799 | ||||||
4.45%, 09/01/47 (Call 03/01/47)(a) | 450 | 500,000 | ||||||
Prologis LP, 4.38%, 09/15/48 (Call 03/15/48) | 115 | 141,691 | ||||||
Realty Income Corp., 4.65%, 03/15/47 (Call 09/15/46) | 520 | 643,888 | ||||||
Regency Centers LP | 385 | 440,923 | ||||||
4.65%, 03/15/49 (Call 09/15/48) | 560 | 671,375 | ||||||
Service Properties Trust, 4.38%, 02/15/30 (Call 08/15/29) | 425 | 410,159 | ||||||
Simon Property Group LP | 355 | 351,834 | ||||||
4.25%, 10/01/44 (Call 04/01/44) | 535 | 620,637 | ||||||
4.25%, 11/30/46 (Call 05/30/46) | 135 | 158,262 | ||||||
4.75%, 03/15/42 (Call 09/15/41) | 825 | 1,007,879 | ||||||
6.75%, 02/01/40 (Call 11/01/39) | 565 | 837,978 | ||||||
Spirit Realty LP, 3.40%, 01/15/30 (Call 10/15/29) | 250 | 251,678 | ||||||
Trust F/1401 | 1,000 | 1,066,362 | ||||||
6.95%, 01/30/44 (Call 07/30/43)(b) | 200 | 231,000 | ||||||
UDR Inc. | 1,040 | 1,049,114 | ||||||
3.20%, 01/15/30 (Call 10/15/29) | 250 | 257,937 | ||||||
Ventas Realty LP | 252 | 277,485 | ||||||
4.88%, 04/15/49 (Call 10/15/48)(a) | 653 | 782,356 | ||||||
5.70%, 09/30/43 (Call 03/30/43) | 166 | 215,438 | ||||||
WEA Finance LLC, 4.63%, 09/20/48 | 100 | 116,870 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC, 4.75%, 09/17/44 (Call 03/17/44)(b) | 1,200 | 1,418,136 | ||||||
Welltower Inc. | 500 | 506,431 | ||||||
4.95%, 09/01/48 (Call 03/01/48) | 485 | 592,729 | ||||||
6.50%, 03/15/41 (Call 09/15/40) | 405 | 552,082 | ||||||
Weyerhaeuser Co. | 1,104 | 1,467,738 | ||||||
7.38%, 03/15/32 | 710 | 992,442 | ||||||
|
| |||||||
24,749,727 | ||||||||
Retail — 2.9% | ||||||||
Alimentation Couche-Tard Inc., | 150 | 162,267 | ||||||
Darden Restaurants Inc., 4.55%, 02/15/48 (Call 08/15/47) | 255 | 268,254 | ||||||
Home Depot Inc. (The) | 805 | 859,940 | ||||||
3.90%, 06/15/47 (Call 12/15/46) | 515 | 594,002 | ||||||
4.20%, 04/01/43 (Call 10/01/42) | 561 | 657,134 | ||||||
4.25%, 04/01/46 (Call 10/01/45) | 1,075 | 1,289,403 | ||||||
4.40%, 03/15/45 (Call 09/15/44) | 880 | 1,057,846 | ||||||
4.50%, 12/06/48 (Call 06/06/48) | 1,042 | 1,307,107 | ||||||
4.88%, 02/15/44 (Call 08/15/43)(a) | 990 | 1,268,345 | ||||||
5.40%, 09/15/40 (Call 03/15/40) | 171 | 227,481 | ||||||
5.88%, 12/16/36(a) | 2,413 | 3,354,677 | ||||||
5.95%, 04/01/41 (Call 10/01/40) | 1,290 | 1,824,099 | ||||||
Kohl’s Corp., 5.55%, 07/17/45 (Call 01/17/45) | 707 | 730,338 | ||||||
Lowe’s Companies Inc. | 775 | 784,465 | ||||||
4.05%, 05/03/47 (Call 11/03/46) | 1,297 | 1,383,618 | ||||||
4.25%, 09/15/44 (Call 03/15/44) | 645 | 703,585 | ||||||
4.38%, 09/15/45 (Call 03/15/45) | 1,285 | 1,408,686 | ||||||
4.55%, 04/05/49 (Call 10/05/48)(a) | 690 | 791,799 |
SCHEDULE OF INVESTMENTS | 49 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
4.65%, 04/15/42 (Call 10/15/41) | $ | 876 | $ | 1,002,273 | ||||
5.00%, 09/15/43 (Call 03/15/43) | 30 | 34,887 | ||||||
Macy’s Retail Holdings Inc. | 340 | 280,737 | ||||||
4.50%, 12/15/34 (Call 06/15/34) | 222 | 208,631 | ||||||
5.13%, 01/15/42 (Call 07/15/41) | 105 | 97,065 | ||||||
Marks & Spencer PLC, 7.13%, 12/01/37(b) | 100 | 113,894 | ||||||
McDonald’s Corp. | 686 | 706,920 | ||||||
3.63%, 09/01/49 (Call 03/01/49) | 475 | 481,214 | ||||||
3.70%, 02/15/42 | 725 | 747,071 | ||||||
4.45%, 03/01/47 (Call 09/01/46) | 335 | 385,245 | ||||||
4.45%, 09/01/48 (Call 03/01/48) | 655 | 757,389 | ||||||
4.60%, 05/26/45 (Call 11/26/44) | 915 | 1,066,420 | ||||||
4.70%, 12/09/35 (Call 06/09/35) | 968 | 1,155,735 | ||||||
4.88%, 07/15/40 | 121 | 144,879 | ||||||
4.88%, 12/09/45 (Call 06/09/45) | 1,080 | 1,307,557 | ||||||
5.70%, 02/01/39 | 255 | 330,555 | ||||||
6.30%, 10/15/37 | 583 | 797,508 | ||||||
6.30%, 03/01/38 | 439 | 600,600 | ||||||
Nordstrom Inc., 5.00%, 01/15/44 (Call 07/15/43)(a) | 665 | 640,366 | ||||||
Starbucks Corp. | 515 | 537,320 | ||||||
4.30%, 06/15/45 (Call 12/15/44)(a) | 465 | 523,611 | ||||||
4.45%, 08/15/49 (Call 02/15/49) | 435 | 502,903 | ||||||
4.50%, 11/15/48 (Call 05/15/48) | 775 | 898,904 | ||||||
Target Corp. | 1,385 | 1,522,979 | ||||||
3.90%, 11/15/47 (Call 05/15/47)(a) | 644 | 737,566 | ||||||
4.00%, 07/01/42(a) | 1,188 | 1,377,213 | ||||||
Tiffany & Co., 4.90%, 10/01/44 (Call 04/01/44)(a) | 255 | 289,892 | ||||||
Walgreen Co., 4.40%, 09/15/42 | 520 | 531,989 | ||||||
Walgreens Boots Alliance Inc. | 898 | 966,118 | ||||||
4.65%, 06/01/46 (Call 12/01/45)(a) | 285 | 302,265 | ||||||
4.80%, 11/18/44 (Call 05/18/44)(a) | 835 | 891,197 | ||||||
Walmart Inc. | 300 | 297,647 | ||||||
3.63%, 12/15/47 (Call 06/15/47) | 1,350 | 1,502,450 | ||||||
3.95%, 06/28/38 (Call 12/28/37) | 3,193 | 3,729,316 | ||||||
4.00%, 04/11/43 (Call 10/11/42) | 660 | 772,630 | ||||||
4.05%, 06/29/48 (Call 12/29/47) | 2,205 | 2,632,486 | ||||||
4.30%, 04/22/44 (Call 10/22/43) | 275 | 338,380 | ||||||
4.75%, 10/02/43 (Call 04/02/43) | 360 | 463,997 | ||||||
5.00%, 10/25/40 | 430 | 566,646 | ||||||
5.25%, 09/01/35 | 1,345 | 1,773,294 | ||||||
5.63%, 04/01/40 | 315 | 445,382 | ||||||
5.63%, 04/15/41 | 653 | 926,819 | ||||||
6.20%, 04/15/38 | 480 | 712,204 | ||||||
6.50%, 08/15/37 | 150 | 227,070 | ||||||
|
| |||||||
53,002,270 | ||||||||
Semiconductors — 1.0% | ||||||||
Analog Devices Inc. | 330 | 362,770 | ||||||
5.30%, 12/15/45 (Call 06/15/45) | 210 | 264,335 | ||||||
Applied Materials Inc. | 720 | 876,563 | ||||||
5.10%, 10/01/35 (Call 04/01/35) | 435 | 549,610 | ||||||
5.85%, 06/15/41(a) | 650 | 888,070 |
Security | Par (000) | Value | ||||||
Semiconductors (continued) | ||||||||
Intel Corp. | $ | 1,269 | $ | 1,429,354 | ||||
4.00%, 12/15/32 | 1,715 | 1,997,242 | ||||||
4.10%, 05/19/46 (Call 11/19/45) | 1,595 | 1,858,506 | ||||||
4.10%, 05/11/47 (Call 11/11/46) | 720 | 841,592 | ||||||
4.25%, 12/15/42(a) | 300 | 357,868 | ||||||
4.80%, 10/01/41(a) | 435 | 549,043 | ||||||
4.90%, 07/29/45 (Call 01/29/45)(a) | 175 | 227,367 | ||||||
KLA Corp. | 305 | 365,785 | ||||||
5.65%, 11/01/34 (Call 07/01/34) | 225 | 268,165 | ||||||
Lam Research Corp., 4.88%, 03/15/49 (Call 09/15/48) | 500 | 615,908 | ||||||
Micron Technology Inc., 4.66%, 02/15/30 (Call 11/15/29) | 310 | 325,604 | ||||||
QUALCOMM Inc. | 976 | 1,096,573 | ||||||
4.65%, 05/20/35 (Call 11/20/34) | 1,264 | 1,482,081 | ||||||
4.80%, 05/20/45 (Call 11/20/44)(a) | 1,135 | 1,350,331 | ||||||
Texas Instruments Inc., 4.15%, 05/15/48 (Call 11/15/47) | 1,485 | 1,799,824 | ||||||
|
| |||||||
17,506,591 | ||||||||
Software — 2.8% | ||||||||
Activision Blizzard Inc., 4.50%, 06/15/47 (Call 12/15/46) | 525 | 595,463 | ||||||
Fidelity National Information Services Inc. 4.50%, 08/15/46 (Call 02/15/46) | 650 | 740,545 | ||||||
Series 30Y, 4.75%, 05/15/48 (Call 11/15/47) | 265 | 317,271 | ||||||
Fiserv Inc., 4.40%, 07/01/49 (Call 01/01/49) | 1,765 | 1,976,690 | ||||||
Microsoft Corp. | 2,335 | 2,562,940 | ||||||
3.50%, 02/12/35 (Call 08/12/34) | 1,395 | 1,529,559 | ||||||
3.50%, 11/15/42 | 715 | 781,815 | ||||||
3.70%, 08/08/46 (Call 02/08/46) | 2,635 | 2,998,514 | ||||||
3.75%, 05/01/43 (Call 11/01/42) | 375 | 425,978 | ||||||
3.75%, 02/12/45 (Call 08/12/44) | 1,390 | 1,581,126 | ||||||
3.95%, 08/08/56 (Call 02/08/56) | 1,355 | 1,603,913 | ||||||
4.00%, 02/12/55 (Call 08/12/54) | 1,450 | 1,733,285 | ||||||
4.10%, 02/06/37 (Call 08/06/36) | 2,230 | 2,640,464 | ||||||
4.20%, 11/03/35 (Call 05/03/35) | 1,670 | 1,982,559 | ||||||
4.25%, 02/06/47 (Call 08/06/46) | 1,225 | 1,521,284 | ||||||
4.45%, 11/03/45 (Call 05/03/45) | 2,135 | 2,711,523 | ||||||
4.50%, 10/01/40 | 690 | 863,700 | ||||||
4.50%, 02/06/57 (Call 08/06/56) | 1,600 | 2,079,062 | ||||||
4.75%, 11/03/55 (Call 05/03/55) | 455 | 611,165 | ||||||
4.88%, 12/15/43 (Call 06/15/43) | 560 | 740,386 | ||||||
5.20%, 06/01/39 | 807 | 1,085,508 | ||||||
5.30%, 02/08/41 | 1,000 | 1,367,546 | ||||||
Oracle Corp. | 950 | 1,011,883 | ||||||
3.80%, 11/15/37 (Call 05/15/37) | 1,290 | 1,419,546 | ||||||
3.85%, 07/15/36 (Call 01/15/36) | 1,110 | 1,227,010 | ||||||
3.90%, 05/15/35 (Call 11/15/34) | 760 | 848,111 | ||||||
4.00%, 07/15/46 (Call 01/15/46) | 1,640 | 1,824,091 | ||||||
4.00%, 11/15/47 (Call 05/15/47) | 1,720 | 1,927,941 | ||||||
4.13%, 05/15/45 (Call 11/15/44) | 1,975 | 2,225,364 | ||||||
4.30%, 07/08/34 (Call 01/08/34) | 1,990 | 2,332,059 | ||||||
4.38%, 05/15/55 (Call 11/15/54) | 934 | 1,112,818 | ||||||
4.50%, 07/08/44 (Call 01/08/44) | 570 | 677,758 | ||||||
5.38%, 07/15/40 | 1,455 | 1,891,296 | ||||||
6.13%, 07/08/39 | 1,165 | 1,640,713 | ||||||
6.50%, 04/15/38 | 741 | 1,070,287 | ||||||
|
| |||||||
51,659,173 |
50 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Telecommunications — 7.6% | ||||||||
America Movil SAB de CV | $ | 453 | $ | 513,164 | ||||
4.38%, 04/22/49 (Call 10/22/48)(a) | 1,250 | 1,443,472 | ||||||
6.13%, 11/15/37 | 125 | 167,579 | ||||||
6.13%, 03/30/40 | 1,126 | 1,527,489 | ||||||
6.38%, 03/01/35(a) | 400 | 540,125 | ||||||
AT&T Inc. | 2,510 | 2,760,624 | ||||||
4.30%, 12/15/42 (Call 06/15/42) | 1,185 | 1,254,304 | ||||||
4.35%, 06/15/45 (Call 12/15/44) | 2,245 | 2,377,881 | ||||||
4.50%, 05/15/35 (Call 11/15/34) | 2,095 | 2,311,087 | ||||||
4.50%, 03/09/48 (Call 09/09/47) | 3,055 | 3,267,300 | ||||||
4.55%, 03/09/49 (Call 09/09/48) | 1,745 | 1,877,591 | ||||||
4.65%, 06/01/44 (Call 12/01/43) | 370 | 402,469 | ||||||
4.75%, 05/15/46 (Call 11/15/45) | 2,685 | 2,980,994 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 2,250 | 2,505,582 | ||||||
4.85%, 03/01/39 (Call 09/01/38) | 1,480 | 1,677,564 | ||||||
4.85%, 07/15/45 (Call 01/15/45) | 763 | 864,114 | ||||||
4.90%, 08/15/37 (Call 02/14/37) | 990 | 1,129,182 | ||||||
4.90%, 06/15/42 | 475 | 536,526 | ||||||
5.15%, 03/15/42 | 1,115 | 1,295,384 | ||||||
5.15%, 11/15/46 (Call 05/15/46) | 1,335 | 1,552,474 | ||||||
5.15%, 02/15/50 (Call 08/14/49)(a) | 2,154 | 2,522,560 | ||||||
5.25%, 03/01/37 (Call 09/01/36) | 1,770 | 2,083,230 | ||||||
5.30%, 08/15/58 (Call 02/14/58)(a) | 865 | 1,030,990 | ||||||
5.35%, 09/01/40 | 1,535 | 1,818,243 | ||||||
5.35%, 12/15/43 | 225 | 268,923 | ||||||
5.38%, 10/15/41 | 340 | 399,018 | ||||||
5.45%, 03/01/47 (Call 09/01/46)(a) | 1,740 | 2,102,481 | ||||||
5.55%, 08/15/41 | 346 | 417,018 | ||||||
5.65%, 02/15/47 (Call 08/15/46) | 1,005 | 1,243,991 | ||||||
5.70%, 03/01/57 (Call 09/01/56) | 679 | 852,226 | ||||||
6.00%, 08/15/40 (Call 05/15/40)(a) | 870 | 1,089,498 | ||||||
6.10%, 07/15/40 | 100 | 126,415 | ||||||
6.15%, 09/15/34 | 50 | 63,601 | ||||||
6.20%, 03/15/40 | 100 | 126,667 | ||||||
6.25%, 03/29/41(a) | 250 | 321,522 | ||||||
6.30%, 01/15/38 | 25 | 32,484 | ||||||
6.35%, 03/15/40 | 255 | 331,033 | ||||||
6.38%, 03/01/41 | 945 | 1,234,466 | ||||||
6.45%, 06/15/34 | 25 | 31,382 | ||||||
6.55%, 02/15/39 | 350 | 462,580 | ||||||
AT&T Mobility LLC, 7.13%, 12/15/31 | 60 | 80,837 | ||||||
Bell Canada Inc. | 735 | 838,907 | ||||||
4.46%, 04/01/48 (Call 10/01/47) | 1,309 | 1,516,272 | ||||||
British Telecommunications PLC, 9.63%, 12/15/30 | 2,302 | 3,532,290 | ||||||
Cisco Systems Inc. | 1,345 | 1,850,199 | ||||||
5.90%, 02/15/39 | 1,895 | 2,683,031 | ||||||
Corning Inc. | 930 | 984,527 | ||||||
4.70%, 03/15/37 (Call 09/15/36) | 165 | 184,237 | ||||||
4.75%, 03/15/42 | 735 | 842,590 | ||||||
5.35%, 11/15/48 (Call 05/15/48)(a) | 440 | 573,913 | ||||||
5.75%, 08/15/40 | 250 | 310,512 | ||||||
5.85%, 11/15/68 (Call 05/15/68) | 50 | 61,243 | ||||||
7.25%, 08/15/36 (Call 08/15/26) | 90 | 110,388 | ||||||
Deutsche Telekom International Finance BV 4.75%, 06/21/38 (Call 12/21/37)(a)(b) | 650 | 743,291 |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
4.88%, 03/06/42(a)(b) | $ | 345 | $ | 402,302 | ||||
8.75%, 06/15/30 | 3,410 | 5,040,167 | ||||||
9.25%, 06/01/32 | 529 | 836,049 | ||||||
Juniper Networks Inc., 5.95%, 03/15/41 | 390 | 444,125 | ||||||
Koninklijke KPN NV, 8.38%, 10/01/30 | 501 | 677,964 | ||||||
Motorola Solutions Inc., 5.50%, 09/01/44 | 520 | 558,143 | ||||||
Ooredoo International Finance Ltd., | 410 | 469,066 | ||||||
Orange SA | 555 | 710,370 | ||||||
5.50%, 02/06/44 (Call 08/06/43) | 485 | 641,343 | ||||||
9.00%, 03/01/31 | 2,017 | 3,148,101 | ||||||
Rogers Communications Inc. | 40 | 40,853 | ||||||
4.30%, 02/15/48 (Call 08/15/47)(a) | 795 | 888,338 | ||||||
4.35%, 05/01/49 (Call 11/01/48) | 710 | 799,394 | ||||||
4.50%, 03/15/43 (Call 09/15/42) | 595 | 678,734 | ||||||
5.00%, 03/15/44 (Call 09/15/43) | 1,055 | 1,297,933 | ||||||
5.45%, 10/01/43 (Call 04/01/43) | 976 | 1,238,492 | ||||||
7.50%, 08/15/38 | 240 | 359,530 | ||||||
SES Global Americas Holdings GP, 5.30%, 03/25/44(b) | 805 | 856,136 | ||||||
Telefonica Emisiones SA | 545 | 595,943 | ||||||
4.90%, 03/06/48 | 1,110 | 1,242,399 | ||||||
5.21%, 03/08/47 | 2,555 | 2,971,329 | ||||||
5.52%, 03/01/49 (Call 09/01/48)(a) | 505 | 614,660 | ||||||
7.05%, 06/20/36 | 1,710 | 2,371,415 | ||||||
Telefonica Europe BV, 8.25%, 09/15/30 | 915 | 1,323,577 | ||||||
TELUS Corp. | 765 | 868,289 | ||||||
4.60%, 11/16/48 (Call 05/16/48) | 540 | 638,404 | ||||||
Verizon Communications Inc. | 1,080 | 1,158,234 | ||||||
4.02%, 12/03/29 (Call 09/03/29) | 2,350 | 2,630,336 | ||||||
4.13%, 08/15/46 | 1,175 | 1,322,197 | ||||||
4.27%, 01/15/36 | 2,880 | 3,259,004 | ||||||
4.40%, 11/01/34 (Call 05/01/34) | 1,790 | 2,066,383 | ||||||
4.50%, 08/10/33 | 2,870 | 3,350,636 | ||||||
4.52%, 09/15/48 | 3,370 | 4,009,008 | ||||||
4.67%, 03/15/55 | 1,602 | 1,968,031 | ||||||
4.75%, 11/01/41 | 1,333 | 1,604,617 | ||||||
4.81%, 03/15/39 | 1,125 | 1,368,065 | ||||||
4.86%, 08/21/46 | 2,527 | 3,132,374 | ||||||
5.01%, 04/15/49 | 2,350 | 3,034,387 | ||||||
5.01%, 08/21/54 | 640 | 828,694 | ||||||
5.25%, 03/16/37 | 2,330 | 2,934,817 | ||||||
5.50%, 03/16/47 | 1,565 | 2,132,332 | ||||||
5.85%, 09/15/35 | 150 | 199,504 | ||||||
6.40%, 09/15/33 | 670 | 909,294 | ||||||
6.40%, 02/15/38 | 50 | 69,092 | ||||||
6.55%, 09/15/43 | 1,120 | 1,668,172 | ||||||
7.75%, 12/01/30 | 125 | 181,127 | ||||||
Vodafone Group PLC | 1,200 | 1,230,614 | ||||||
4.38%, 02/19/43 | 1,115 | 1,164,960 | ||||||
4.88%, 06/19/49 | 525 | 590,134 | ||||||
5.00%, 05/30/38 | 1,580 | 1,807,985 | ||||||
5.13%, 06/19/59 | 75 | 86,200 | ||||||
5.25%, 05/30/48 | 2,179 | 2,538,485 | ||||||
6.15%, 02/27/37 | 1,600 | 2,042,361 | ||||||
6.25%, 11/30/32 | 535 | 674,881 |
SCHEDULE OF INVESTMENTS | 51 |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
7.88%, 02/15/30 | $ | 575 | $ | 799,804 | ||||
|
| |||||||
140,330,254 | ||||||||
Toys, Games & Hobbies — 0.1% | ||||||||
Hasbro Inc. | ||||||||
5.10%, 05/15/44 (Call 11/15/43)(a) | 815 | 840,335 | ||||||
6.35%, 03/15/40(a) | 285 | 336,726 | ||||||
|
| |||||||
1,177,061 | ||||||||
Transportation — 3.3% | ||||||||
Burlington Northern Santa Fe LLC | ||||||||
3.90%, 08/01/46 (Call 02/01/46) | 625 | 693,727 | ||||||
4.05%, 06/15/48 (Call 12/15/47) | 535 | 612,398 | ||||||
4.13%, 06/15/47 (Call 12/15/46) | 174 | 201,613 | ||||||
4.15%, 04/01/45 (Call 10/01/44) | 1,535 | 1,760,887 | ||||||
4.15%, 12/15/48 (Call 06/15/48) | 525 | 612,173 | ||||||
4.38%, 09/01/42 (Call 03/01/42) | 525 | 607,894 | ||||||
4.40%, 03/15/42 (Call 09/15/41) | 615 | 713,272 | ||||||
4.45%, 03/15/43 (Call 09/15/42) | 426 | 501,935 | ||||||
4.55%, 09/01/44 (Call 03/01/44) | 875 | 1,046,806 | ||||||
4.70%, 09/01/45 (Call 03/01/45) | 685 | 839,807 | ||||||
4.90%, 04/01/44 (Call 10/01/43) | 520 | 651,501 | ||||||
4.95%, 09/15/41 (Call 03/15/41) | 434 | 539,201 | ||||||
5.05%, 03/01/41 (Call 09/01/40) | 81 | 101,342 | ||||||
5.15%, 09/01/43 (Call 03/01/43) | 580 | 743,568 | ||||||
5.40%, 06/01/41 (Call 12/01/40) | 635 | 823,754 | ||||||
5.75%, 05/01/40 (Call 11/01/39) | 670 | 906,565 | ||||||
6.15%, 05/01/37 | 475 | 666,696 | ||||||
6.20%, 08/15/36 | 200 | 277,618 | ||||||
7.95%, 08/15/30 | 83 | 120,306 | ||||||
Canadian National Railway Co. | ||||||||
3.20%, 08/02/46 (Call 02/02/46) | 300 | 314,036 | ||||||
3.65%, 02/03/48 (Call 08/03/47) | 1,345 | 1,494,604 | ||||||
4.45%, 01/20/49 (Call 07/20/48) | 270 | 340,358 | ||||||
4.50%, 11/07/43 (Call 05/07/43) | 50 | 60,144 | ||||||
6.20%, 06/01/36 | 475 | 672,507 | ||||||
6.25%, 08/01/34 | 186 | 259,504 | ||||||
6.38%, 11/15/37 | 275 | 400,149 | ||||||
6.71%, 07/15/36 | 425 | 624,053 | ||||||
Canadian Pacific Railway Co. | ||||||||
4.80%, 09/15/35 (Call 03/15/35) | 517 | 621,967 | ||||||
4.80%, 08/01/45 (Call 02/01/45) | 420 | 532,201 | ||||||
5.95%, 05/15/37 | 16 | 21,601 | ||||||
6.13%, 09/15/2115 (Call 03/15/2115) | 798 | 1,173,720 | ||||||
7.13%, 10/15/31 | 780 | 1,101,344 | ||||||
CSX Corp. | ||||||||
2.40%, 02/15/30 (Call 11/15/29) | 250 | 245,186 | ||||||
3.35%, 09/15/49 (Call 03/15/49) | 765 | 756,145 | ||||||
3.80%, 11/01/46 (Call 05/01/46) | 578 | 607,220 | ||||||
3.95%, 05/01/50 (Call 11/01/49) | 210 | 226,521 | ||||||
4.10%, 03/15/44 (Call 09/15/43) | 425 | 466,337 | ||||||
4.25%, 11/01/66 (Call 05/01/66) | 546 | 587,433 | ||||||
4.30%, 03/01/48 (Call 09/01/47) | 771 | 869,695 | ||||||
4.40%, 03/01/43 (Call 09/01/42) | 350 | 392,864 | ||||||
4.50%, 03/15/49 (Call 09/15/48) | 525 | 618,809 | ||||||
4.50%, 08/01/54 (Call 02/01/54) | 200 | 232,797 | ||||||
4.65%, 03/01/68 (Call 09/01/67) | 135 | 156,315 | ||||||
4.75%, 05/30/42 (Call 11/30/41)(a) | 586 | 686,662 | ||||||
5.50%, 04/15/41 (Call 10/15/40) | 230 | 288,004 | ||||||
6.00%, 10/01/36 | 345 | 444,631 | ||||||
6.15%, 05/01/37 | 533 | 704,674 |
Security | Par (000) | Value | ||||||
Transportation (continued) | ||||||||
6.22%, 04/30/40 | $ | 835 | $ | 1,134,859 | ||||
Empresa de Transporte de Pasajeros Metro SA, 5.00%, 01/25/47 (Call 07/25/46) | 400 | 467,880 | ||||||
FedEx Corp. | ||||||||
3.88%, 08/01/42(a) | 260 | 253,677 | ||||||
3.90%, 02/01/35 | 745 | 762,458 | ||||||
4.05%, 02/15/48 (Call 08/15/47) | 970 | 957,918 | ||||||
4.10%, 04/15/43 | 652 | 652,840 | ||||||
4.10%, 02/01/45 | 590 | 583,760 | ||||||
4.40%, 01/15/47 (Call 07/15/46) | 540 | 552,477 | ||||||
4.55%, 04/01/46 (Call 10/01/45) | 1,150 | 1,205,306 | ||||||
4.75%, 11/15/45 (Call 05/15/45) | 875 | 943,444 | ||||||
4.90%, 01/15/34 | 455 | 526,369 | ||||||
4.95%, 10/17/48 (Call 04/17/48) | 481 | 537,012 | ||||||
5.10%, 01/15/44 | 1,085 | 1,220,070 | ||||||
Kansas City Southern | ||||||||
4.30%, 05/15/43 (Call 11/15/42) | 140 | 153,975 | ||||||
4.95%, 08/15/45 (Call 02/15/45) | 270 | 327,324 | ||||||
Lima Metro Line 2 Finance Ltd., 5.88%, 07/05/34 | 220 | 258,014 | ||||||
Norfolk Southern Corp. | ||||||||
3.40%, 11/01/49 (Call 05/01/49) | 170 | 170,230 | ||||||
3.94%, 11/01/47 (Call 05/01/47) | 565 | 620,316 | ||||||
3.95%, 10/01/42 (Call 04/01/42) | 170 | 183,638 | ||||||
4.05%, 08/15/52 (Call 02/15/52) | 1,220 | 1,354,404 | ||||||
4.10%, 05/15/49 (Call 11/15/48) | 345 | 390,477 | ||||||
4.15%, 02/28/48 (Call 08/28/47) | 1,110 | 1,255,528 | ||||||
4.45%, 06/15/45 (Call 12/15/44) | 310 | 360,625 | ||||||
4.65%, 01/15/46 (Call 07/15/45) | 380 | 455,222 | ||||||
4.84%, 10/01/41 | 845 | 1,012,967 | ||||||
5.10%, 08/01/2118 (Call 02/01/2118) | 125 | 150,347 | ||||||
Pelabuhan Indonesia II PT, 5.38%, 05/05/45 | 200 | 228,250 | ||||||
Polar Tankers Inc., 5.95%, 05/10/37(b) | 30 | 37,348 | ||||||
TTX Co. | ||||||||
4.20%, 07/01/46 (Call 01/01/46) | 250 | 281,028 | ||||||
4.60%, 02/01/49 (Call 08/01/48)(b) | 250 | 305,594 | ||||||
Union Pacific Corp. | ||||||||
3.35%, 08/15/46 (Call 02/15/46) | 150 | 147,818 | ||||||
3.38%, 02/01/35 (Call 08/01/34) | 550 | 568,478 | ||||||
3.55%, 08/15/39 (Call 02/15/39) | 185 | 195,437 | ||||||
3.60%, 09/15/37 (Call 03/15/37) | 455 | 475,203 | ||||||
3.80%, 10/01/51 (Call 04/01/51) | 1,115 | 1,190,789 | ||||||
3.88%, 02/01/55 (Call 08/01/54) | 375 | 395,092 | ||||||
4.00%, 04/15/47 (Call 10/15/46) | 150 | 165,031 | ||||||
4.05%, 11/15/45 (Call 05/15/45) | 500 | 545,916 | ||||||
4.05%, 03/01/46 (Call 09/01/45) | 695 | 764,676 | ||||||
4.10%, 09/15/67 (Call 03/15/67) | 445 | 461,803 | ||||||
4.15%, 01/15/45 (Call 07/15/44) | 405 | 448,216 | ||||||
4.25%, 04/15/43 (Call 10/15/42) | 331 | 373,148 | ||||||
4.30%, 06/15/42 (Call 12/15/41)(a) | 150 | 167,904 | ||||||
4.30%, 03/01/49 (Call 09/01/48)(a) | 983 | 1,142,867 | ||||||
4.38%, 09/10/38 (Call 03/10/38) | 1,066 | 1,230,673 | ||||||
4.38%, 11/15/65 (Call 05/15/65) | 591 | 640,519 | ||||||
4.50%, 09/10/48 (Call 03/10/48) | 1,025 | 1,237,603 | ||||||
4.75%, 09/15/41 (Call 03/15/41) | 193 | 232,507 | ||||||
4.75%, 12/15/43 (Call 06/15/43) | 175 | 213,649 | ||||||
4.80%, 09/10/58 (Call 03/10/58) | 395 | 487,996 | ||||||
4.82%, 02/01/44 (Call 08/01/43)(a) | 235 | 290,203 | ||||||
United Parcel Service Inc. | ||||||||
3.40%, 11/15/46 (Call 05/15/46) | 110 | 112,951 | ||||||
3.40%, 09/01/49 (Call 03/01/49)(a) | 590 | 602,025 |
52 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (unaudited) (continued) October 31, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Transportation (continued) | ||||||||
3.63%, 10/01/42 | $ | 445 | $ | 473,005 | ||||
3.75%, 11/15/47 (Call 05/15/47) | 495 | 533,862 | ||||||
4.25%, 03/15/49 (Call 09/15/48) | 1,125 | 1,308,979 | ||||||
4.88%, 11/15/40 (Call 05/15/40) | 430 | 531,429 | ||||||
6.20%, 01/15/38 | 945 | 1,327,255 | ||||||
United Parcel Service of America Inc., 8.38%, 04/01/30(f) | 30 | 42,845 | ||||||
|
| |||||||
60,971,780 | ||||||||
Trucking & Leasing — 0.0% | ||||||||
GATX Corp. | ||||||||
4.50%, 03/30/45 (Call 09/30/44)(a) | 150 | 158,002 | ||||||
5.20%, 03/15/44 (Call 09/15/43)(a) | 185 | 216,601 | ||||||
|
| |||||||
374,603 | ||||||||
Unknown BI — 0.0% | ||||||||
Target Corp., 6.35%, 11/01/32(a) | 135 | 191,028 | ||||||
Votorantim Cimentos SA, 7.25%, 04/05/41 | 500 | 633,437 | ||||||
|
| |||||||
824,465 | ||||||||
Water — 0.2% | ||||||||
American Water Capital Corp. | ||||||||
3.75%, 09/01/47 (Call 03/01/47) | 1,220 | 1,312,991 | ||||||
4.00%, 12/01/46 (Call 06/01/46) | 145 | 161,464 | ||||||
4.15%, 06/01/49 (Call 12/01/48) | 265 | 307,810 | ||||||
4.20%, 09/01/48 (Call 03/01/48)(a) | 490 | 567,623 | ||||||
4.30%, 12/01/42 (Call 06/01/42) | 76 | 86,789 | ||||||
4.30%, 09/01/45 (Call 03/01/45) | 920 | 1,071,637 | ||||||
6.59%, 10/15/37 | 395 | 558,672 | ||||||
Aqua America Inc., 4.28%, 05/01/49 (Call 11/01/48) | 210 | 238,134 | ||||||
Veolia Environnement SA, 6.75%, 06/01/38 | 179 | 247,499 | ||||||
|
| |||||||
4,552,619 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 97.1% (Cost: $1,678,991,357) |
| 1,791,497,233 | ||||||
|
|
Security | Shares (000) | Value | ||||||
Short-Term Investments |
| |||||||
Money Market Funds — 8.1% | ||||||||
BlackRock Cash Funds: Institutional, | ||||||||
2.00%(g)(h)(i) | 108,324 | $ | 108,378,576 | |||||
BlackRock Cash Funds: Treasury, | ||||||||
1.74%(g)(h) | 40,445 | 40,445,000 | ||||||
|
| |||||||
148,823,576 | ||||||||
|
| |||||||
Total Short-Term Investments — 8.1% |
| 148,823,576 | ||||||
|
| |||||||
Total Investments in Securities — 105.2% (Cost: $1,827,790,978) |
| 1,940,320,809 | ||||||
Other Assets, Less Liabilities — (5.2)% |
| (95,127,922 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 1,845,192,887 | |||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. |
(d) | Variable or floating rate security. Rate shown is the rate in effect as ofperiod-end. |
(e) | Perpetual security with no stated maturity date. |
(f) | 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. |
(g) | Affiliate of the Fund. |
(h) | Annualized7-day yield as ofperiod-end. |
(i) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to a recently published shareholder report. Shareholder reports are available on the Fund’s website at iShares.com and on the U.S. Securities and Exchange Commission website at sec.gov.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 1,791,497,233 | $ | — | $ | 1,791,497,233 | ||||||||
Money Market Funds | 148,823,576 | — | — | 148,823,576 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 148,823,576 | $ | 1,791,497,233 | $ | — | $ | 1,940,320,809 | |||||||||
|
|
|
|
|
|
|
|
SCHEDULE OF INVESTMENTS | 53 |
Statement of Assets and Liabilities (unaudited)
October 31, 2019
iShares Long-Term Corporate Bond ETF | ||||
ASSETS | ||||
Investments in securities, at value (including securities on loan)(a): | ||||
Unaffiliated(b) | $ | 1,791,497,233 | ||
Affiliated(c) | 148,823,576 | |||
Receivables: | ||||
Investments sold | 27,838,009 | |||
Securities lending income — Affiliated | 26,914 | |||
Capital shares sold | 1,327,247 | |||
Dividends | 60,425 | |||
Interest | 19,780,214 | |||
|
| |||
Total assets | 1,989,353,618 | |||
|
| |||
LIABILITIES | ||||
Bank overdraft | 161,617 | |||
Collateral on securities loaned, at value | 108,344,672 | |||
Payables: | ||||
Investments purchased | 35,566,772 | |||
Investment advisory fees | 87,670 | |||
|
| |||
Total liabilities | 144,160,731 | |||
|
| |||
NET ASSETS | $ | 1,845,192,887 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 1,741,056,402 | ||
Accumulated earnings | 104,136,485 | |||
|
| |||
NET ASSETS | $ | 1,845,192,887 | ||
|
| |||
Shares outstanding | 27,700,000 | |||
|
| |||
Net asset value | $ | 66.61 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Securities loaned, at value | $ | 105,893,841 | ||
(b) Investments, at cost — Unaffiliated | $ | 1,678,991,357 | ||
(c) Investments, at cost — Affiliated | $ | 148,799,621 |
54 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes |
| |||||||
Advertising — 0.0% | ||||||||
WPP Finance 2010, 5.63%, 11/15/43 | $ | 310 | $ | 288,845 | ||||
|
| |||||||
Aerospace & Defense — 1.9% | ||||||||
BAE Systems Holdings Inc., 4.75%, 10/07/44(a) | 350 | 356,367 | ||||||
Boeing Co. (The) | 135 | 121,873 | ||||||
3.50%, 03/01/39 (Call 09/01/38) | 280 | 264,147 | ||||||
3.55%, 03/01/38 (Call 09/01/37) | 180 | 172,150 | ||||||
3.65%, 03/01/47 (Call 09/01/46) | 150 | 141,679 | ||||||
3.85%, 11/01/48 (Call 05/01/48) | 75 | 73,361 | ||||||
5.88%, 02/15/40 | 150 | 187,051 | ||||||
6.63%, 02/15/38 | 66 | 86,808 | ||||||
6.88%, 03/15/39 | 252 | 341,345 | ||||||
General Dynamics Corp., 3.60%, 11/15/42 (Call 05/14/42)(b) | 200 | 193,042 | ||||||
Harris Corp. | 175 | 180,589 | ||||||
5.05%, 04/27/45 (Call 10/27/44) | 200 | 212,628 | ||||||
6.15%, 12/15/40 | 100 | 118,402 | ||||||
Lockheed Martin Corp. | 150 | 142,528 | ||||||
3.80%, 03/01/45 (Call 09/01/44) | 540 | 505,413 | ||||||
4.07%, 12/15/42 | 140 | 136,830 | ||||||
4.09%, 09/15/52 (Call 03/15/52) | 545 | 526,691 | ||||||
4.50%, 05/15/36 (Call 11/15/35) | 370 | 388,616 | ||||||
4.70%, 05/15/46 (Call 11/15/45) | 385 | 412,440 | ||||||
Series B, 6.15%, 09/01/36 | 150 | 183,279 | ||||||
Northrop Grumman Corp. | 95 | 87,213 | ||||||
4.03%, 10/15/47 (Call 04/15/47) | 750 | 701,889 | ||||||
4.75%, 06/01/43 | 200 | 209,527 | ||||||
5.05%, 11/15/40 | 200 | 216,162 | ||||||
Northrop Grumman Systems Corp., 7.75%, 02/15/31 | 250 | 336,140 | ||||||
Raytheon Co. | 100 | 103,428 | ||||||
4.70%, 12/15/41(b) | 150 | 165,551 | ||||||
4.88%, 10/15/40 | 212 | 238,664 | ||||||
Rockwell Collins Inc. | 455 | 429,111 | ||||||
4.80%, 12/15/43 (Call 06/15/43) | 150 | 150,817 | ||||||
United Technologies Corp. | 320 | 281,044 | ||||||
4.05%, 05/04/47 (Call 11/04/46) | 200 | 183,902 | ||||||
4.15%, 05/15/45 (Call 11/16/44) | 425 | 397,176 | ||||||
4.50%, 06/01/42 | 1,100 | 1,087,108 | ||||||
4.63%, 11/16/48 (Call 05/16/48) | 600 | 604,442 | ||||||
5.40%, 05/01/35(b) | 121 | 131,894 | ||||||
5.70%, 04/15/40 | 280 | 315,662 | ||||||
6.05%, 06/01/36 | 150 | 172,698 | ||||||
6.13%, 07/15/38 | 290 | 340,838 | ||||||
7.50%, 09/15/29 | 330 | 422,385 | ||||||
|
| |||||||
11,320,890 | ||||||||
Agriculture — 1.3% | ||||||||
Altria Group Inc. | 460 | 347,554 | ||||||
4.25%, 08/09/42 | 470 | 379,016 | ||||||
4.50%, 05/02/43 | 285 | 235,888 | ||||||
5.38%, 01/31/44(b) | 410 | 381,713 | ||||||
5.80%, 02/14/39 (Call 08/14/38) | 150 | 149,341 |
Security | Par (000) | Value | ||||||
Agriculture (continued) | ||||||||
5.95%, 02/14/49 (Call 08/14/48) | $ | 500 | $ | 499,450 | ||||
6.20%, 02/14/59 (Call 08/14/58) | 500 | 500,746 | ||||||
Archer-Daniels-Midland Co. | 399 | 390,155 | ||||||
4.50%, 03/15/49 (Call 09/15/48)(b) | 250 | 263,484 | ||||||
4.54%, 03/26/42 | 378 | 395,200 | ||||||
BAT Capital Corp. | 725 | 600,851 | ||||||
4.54%, 08/15/47 (Call 02/15/47) | 775 | 625,624 | ||||||
Philip Morris International Inc. | 225 | 195,712 | ||||||
4.13%, 03/04/43 | 275 | 246,636 | ||||||
4.25%, 11/10/44(b) | 275 | 251,938 | ||||||
4.38%, 11/15/41 | 100 | 92,617 | ||||||
4.50%, 03/20/42 | 130 | 122,552 | ||||||
4.88%, 11/15/43 | 215 | 212,261 | ||||||
6.38%, 05/16/38 | 525 | 616,831 | ||||||
Reynolds American Inc. | 250 | 246,502 | ||||||
5.85%, 08/15/45 (Call 02/12/45)(b) | 770 | 733,570 | ||||||
6.15%, 09/15/43 | 150 | 147,743 | ||||||
7.25%, 06/15/37 | 103 | 112,570 | ||||||
|
| |||||||
7,747,954 | ||||||||
Apparel — 0.1% | ||||||||
NIKE Inc. | 200 | 181,312 | ||||||
3.63%, 05/01/43 (Call 11/01/42) | 250 | 238,159 | ||||||
3.88%, 11/01/45 (Call 05/01/45) | 245 | 241,895 | ||||||
VF Corp., 6.45%, 11/01/37 | 125 | 147,988 | ||||||
|
| |||||||
809,354 | ||||||||
Auto Manufacturers — 0.8% | ||||||||
Daimler Finance North America LLC, 8.50%, 01/18/31 | 530 | 722,825 | ||||||
Ford Holdings LLC, 9.30%, 03/01/30(b) | 75 | 85,593 | ||||||
Ford Motor Co. | 605 | 463,062 | ||||||
5.29%, 12/08/46 (Call 06/08/46) | 435 | 351,039 | ||||||
7.40%, 11/01/46 | 169 | 169,402 | ||||||
7.45%, 07/16/31(b) | 485 | 511,690 | ||||||
General Motors Co. | 255 | 228,098 | ||||||
5.15%, 04/01/38 (Call 10/01/37) | 325 | 291,875 | ||||||
5.20%, 04/01/45 | 445 | 387,718 | ||||||
5.40%, 04/01/48 (Call 10/01/47) | 100 | 89,484 | ||||||
6.25%, 10/02/43 | 450 | 444,815 | ||||||
6.60%, 04/01/36 (Call 10/01/35) | 425 | 439,395 | ||||||
6.75%, 04/01/46 (Call 10/01/45) | 395 | 406,551 | ||||||
|
| |||||||
4,591,547 | ||||||||
Auto Parts & Equipment — 0.0% | ||||||||
Aptiv PLC, 4.40%, 10/01/46 (Call 04/01/46)(b) | 100 | 86,101 | ||||||
BorgWarner Inc., 4.38%, 03/15/45 (Call 09/15/44) | 185 | 167,087 | ||||||
|
| |||||||
253,188 | ||||||||
Banks — 7.7% | ||||||||
Bank of America Corp. | 725 | 681,560 | ||||||
4.24%, 04/24/38 (Call 04/24/37)(c)(d) | 550 | 546,797 | ||||||
4.44%, 01/20/48 (Call 01/20/47)(b)(c)(d) | 590 | 599,652 | ||||||
4.88%, 04/01/44 | 100 | 107,771 | ||||||
5.00%, 01/21/44 | 395 | 431,637 | ||||||
5.88%, 02/07/42 | 450 | 547,260 |
SCHEDULE OF INVESTMENTS | 55 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
6.11%, 01/29/37 | $ | 700 | $ | 808,191 | ||||
7.75%, 05/14/38 | 650 | 876,167 | ||||||
Series L, 4.75%, 04/21/45 | 58 | 59,088 | ||||||
Bank of America N.A., 6.00%, 10/15/36 | 400 | 479,012 | ||||||
Bank of New York Mellon Corp. (The), | 550 | 535,143 | ||||||
Barclays PLC | 535 | 512,149 | ||||||
5.25%, 08/17/45 | 300 | 297,354 | ||||||
BNP Paribas SA, 7.20%, (Call 06/25/37)(a)(b)(c)(d)(e) | 200 | 213,250 | ||||||
Citigroup Inc. | 295 | 278,962 | ||||||
4.28%, 04/24/48 (Call 10/24/47)(c)(d) | 390 | 388,135 | ||||||
4.65%, 07/30/45 | 475 | 493,626 | ||||||
4.65%, 07/23/48 (Call 06/23/48) | 340 | 354,652 | ||||||
4.75%, 05/18/46 | 325 | 318,899 | ||||||
5.30%, 05/06/44 | 355 | 376,076 | ||||||
5.88%, 02/22/33 | 75 | 83,845 | ||||||
5.88%, 01/30/42 | 400 | 474,228 | ||||||
6.00%, 10/31/33 | 50 | 56,694 | ||||||
6.13%, 08/25/36 | 282 | 320,802 | ||||||
6.63%, 06/15/32 | 500 | 593,004 | ||||||
6.68%, 09/13/43 | 440 | 542,888 | ||||||
8.13%, 07/15/39 | 680 | 986,812 | ||||||
Commonwealth Bank of Australia, 4.32%, 01/10/48(a) | 550 | 501,395 | ||||||
Cooperatieve Rabobank UA | 620 | 714,292 | ||||||
5.25%, 08/04/45 | 361 | 389,325 | ||||||
5.75%, 12/01/43 | 425 | 487,322 | ||||||
Credit Suisse Group Funding Guernsey Ltd., 4.88%, 05/15/45 | 711 | 731,084 | ||||||
Fifth Third Bancorp., 8.25%, 03/01/38 | 380 | 523,363 | ||||||
First Republic Bank/CA, 4.38%, 08/01/46 (Call 02/01/46) | 250 | 232,074 | ||||||
Goldman Sachs Group Inc. (The) | 575 | 530,972 | ||||||
4.41%, 04/23/39 (Call 04/23/38)(c)(d) | 610 | 590,019 | ||||||
4.75%, 10/21/45 (Call 04/21/45) | 600 | 607,435 | ||||||
4.80%, 07/08/44 (Call 01/08/44) | 610 | 619,246 | ||||||
5.15%, 05/22/45 | 585 | 588,875 | ||||||
6.25%, 02/01/41 | 725 | 872,929 | ||||||
6.45%, 05/01/36 | 25 | 29,013 | ||||||
6.75%, 10/01/37 | 2,010 | 2,389,601 | ||||||
HSBC Bank USA N.A., 7.00%, 01/15/39 | 250 | 322,969 | ||||||
HSBC Bank USA N.A./New York NY, 5.63%, 08/15/35 | 385 | 433,964 | ||||||
HSBC Holdings PLC | 350 | 369,415 | ||||||
6.10%, 01/14/42 | 225 | 276,820 | ||||||
6.50%, 05/02/36 | 750 | 890,022 | ||||||
6.50%, 09/15/37 | 825 | 985,420 | ||||||
6.80%, 06/01/38 | 700 | 864,719 | ||||||
7.63%, 05/17/32 | 300 | 385,517 | ||||||
JPMorgan Chase & Co. | 910 | 862,842 | ||||||
3.90%, 01/23/49 (Call 01/23/48)(c)(d) | 630 | 586,181 | ||||||
4.03%, 07/24/48 (Call 07/24/47)(c)(d) | 500 | 476,443 | ||||||
4.26%, 02/22/48 (Call 02/22/47)(c)(d) | 500 | 492,693 | ||||||
4.85%, 02/01/44 | 250 | 266,039 | ||||||
4.95%, 06/01/45 | 560 | 593,900 | ||||||
5.40%, 01/06/42 | 500 | 568,562 | ||||||
5.50%, 10/15/40 | 635 | 731,669 |
Security | Par (000) | Value | ||||||
Banks (continued) | ||||||||
5.60%, 07/15/41 | $ | 360 | $ | 420,922 | ||||
5.63%, 08/16/43(b) | 535 | 613,068 | ||||||
6.40%, 05/15/38 | 795 | 998,718 | ||||||
Lloyds Banking Group PLC | 540 | 462,304 | ||||||
5.30%, 12/01/45(b) | 200 | 199,121 | ||||||
Mitsubishi UFJ Financial Group Inc. | 250 | 249,798 | ||||||
4.29%, 07/26/38 | 125 | 128,035 | ||||||
Morgan Stanley | 800 | 785,347 | ||||||
4.38%, 01/22/47 | 975 | 968,832 | ||||||
4.46%, 04/22/39 (Call 04/22/38)(c)(d) | 500 | 501,385 | ||||||
6.38%, 07/24/42 | 550 | 690,909 | ||||||
7.25%, 04/01/32 | 250 | 324,257 | ||||||
Regions Financial Corp., 7.38%, 12/10/37 | 235 | 303,187 | ||||||
Santander UK Group Holdings PLC, | 200 | 197,267 | ||||||
Standard Chartered PLC | 200 | 202,689 | ||||||
5.70%, 03/26/44(a)(b) | 700 | 749,181 | ||||||
UBS AG/London, 4.50%, 06/26/48(a) | 200 | 216,079 | ||||||
Wachovia Corp. | 560 | 618,601 | ||||||
6.55%, 10/15/35 | 50 | 59,479 | ||||||
Wells Fargo & Co. | 600 | 576,216 | ||||||
4.40%, 06/14/46 | 660 | 634,523 | ||||||
4.65%, 11/04/44 | 550 | 547,434 | ||||||
4.75%, 12/07/46 | 835 | 842,623 | ||||||
4.90%, 11/17/45 | 625 | 641,170 | ||||||
5.38%, 02/07/35 | 260 | 295,518 | ||||||
5.38%, 11/02/43 | 635 | 691,241 | ||||||
5.61%, 01/15/44 | 785 | 884,215 | ||||||
Wells Fargo Bank N.A., 6.60%, 01/15/38 | 250 | 316,026 | ||||||
Wells Fargo Capital X, 5.95%, 12/01/86 | 200 | 215,500 | ||||||
|
| |||||||
45,211,419 | ||||||||
Beverages — 3.0% | ||||||||
Anheuser-Busch Companies LLC/Anheuser-Busch InBev Worldwide Inc. | 2,000 | 1,930,626 | ||||||
4.90%, 02/01/46 (Call 08/01/45)(a) | 2,935 | 2,816,040 | ||||||
Anheuser-Busch InBev Finance Inc. | 265 | 223,265 | ||||||
4.63%, 02/01/44 | 350 | 320,589 | ||||||
4.70%, 02/01/36 (Call 08/01/35) | 25 | 24,133 | ||||||
4.90%, 02/01/46 (Call 08/01/45) | 95 | 90,646 | ||||||
Anheuser-Busch InBev Worldwide Inc. | 300 | 248,050 | ||||||
4.38%, 04/15/38 (Call 10/15/37) | 250 | 229,175 | ||||||
4.44%, 10/06/48 (Call 04/06/48) | 550 | 495,607 | ||||||
4.60%, 04/15/48 (Call 10/15/47) | 835 | 768,994 | ||||||
4.75%, 04/15/58 (Call 10/15/57)(b) | 400 | 363,929 | ||||||
4.90%, 01/23/31 (Call 10/23/30) | 250 | 261,927 | ||||||
4.95%, 01/15/42 | 500 | 488,014 | ||||||
5.55%, 01/23/49 (Call 07/23/48) | 1,650 | 1,733,583 | ||||||
5.80%, 01/23/59 (Call 07/23/58)(b) | 500 | 533,332 | ||||||
8.00%, 11/15/39 | 150 | 195,894 | ||||||
8.20%, 01/15/39 | 380 | 510,492 | ||||||
Bacardi Ltd., 5.30%, 05/15/48 (Call 11/15/47)(a) | 425 | 384,179 | ||||||
Brown-Forman Corp., 4.50%, 07/15/45 (Call 01/15/45) | 128 | 134,737 |
56 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Beverages (continued) | ||||||||
Coca-Cola FEMSA SAB de CV, 5.25%, 11/26/43 | $ | 306 | $ | 333,309 | ||||
Constellation Brands Inc. | 375 | 322,185 | ||||||
4.50%, 05/09/47 (Call 11/09/46) | 50 | 45,680 | ||||||
5.25%, 11/15/48 (Call 05/15/48)(b) | 40 | 40,508 | ||||||
Diageo Capital PLC | 100 | 97,183 | ||||||
5.88%, 09/30/36 | 365 | 440,192 | ||||||
Diageo Investment Corp. | 300 | 304,633 | ||||||
7.45%, 04/15/35 | 11 | 14,949 | ||||||
Fomento Economico Mexicano SAB de CV, 4.38%, 05/10/43 | 200 | 195,235 | ||||||
Keurig Dr Pepper Inc. | 75 | 64,503 | ||||||
4.50%, 11/15/45 (Call 08/15/45) | 350 | 309,185 | ||||||
4.99%, 05/25/38 (Call 11/25/37)(a)(b) | 250 | 244,663 | ||||||
Molson Coors Brewing Co. | 450 | 382,084 | ||||||
5.00%, 05/01/42 | 400 | 378,475 | ||||||
PepsiCo Inc. | 590 | 539,569 | ||||||
3.60%, 08/13/42 | 250 | 234,933 | ||||||
4.00%, 03/05/42 | 182 | 180,610 | ||||||
4.00%, 05/02/47 (Call 11/02/46)(b) | 370 | 367,677 | ||||||
4.25%, 10/22/44 (Call 04/22/44) | 300 | 309,026 | ||||||
4.45%, 04/14/46 (Call 10/14/45) | 350 | 373,982 | ||||||
4.60%, 07/17/45 (Call 01/17/45)(b) | 250 | 272,000 | ||||||
Pernod Ricard SA, 5.50%, 01/15/42(a) | 250 | 269,739 | ||||||
|
| |||||||
17,473,532 | ||||||||
Biotechnology — 1.5% | ||||||||
Amgen Inc. | 965 | 905,923 | ||||||
4.56%, 06/15/48 (Call 12/15/47) | 375 | 354,652 | ||||||
4.66%, 06/15/51 (Call 12/15/50)(b) | 1,160 | 1,110,926 | ||||||
4.95%, 10/01/41 | 170 | 172,995 | ||||||
5.15%, 11/15/41 (Call 05/15/41) | 400 | 414,325 | ||||||
5.65%, 06/15/42 (Call 12/15/41) | 40 | 43,545 | ||||||
5.75%, 03/15/40 | 115 | 126,770 | ||||||
Baxalta Inc., 5.25%, 06/23/45 (Call 12/23/44)(b) | 125 | 129,116 | ||||||
Biogen Inc., 5.20%, 09/15/45 (Call 03/15/45) | 540 | 564,641 | ||||||
Celgene Corp. | 400 | 358,116 | ||||||
4.55%, 02/20/48 (Call 08/20/47) | 390 | 361,032 | ||||||
4.63%, 05/15/44 (Call 11/15/43) | 460 | 429,395 | ||||||
5.00%, 08/15/45 (Call 02/15/45) | 425 | 419,341 | ||||||
5.25%, 08/15/43 | 370 | 372,868 | ||||||
Gilead Sciences Inc. | 135 | 125,794 | ||||||
4.15%, 03/01/47 (Call 09/01/46) | 425 | 388,536 | ||||||
4.50%, 02/01/45 (Call 08/01/44) | 600 | 578,763 | ||||||
4.60%, 09/01/35 (Call 03/01/35) | 475 | 474,063 | ||||||
4.75%, 03/01/46 (Call 09/01/45) | 590 | 591,922 | ||||||
4.80%, 04/01/44 (Call 10/01/43) | 630 | 631,939 | ||||||
5.65%, 12/01/41 (Call 06/01/41) | 350 | 389,897 | ||||||
|
| |||||||
8,944,559 | ||||||||
Building Materials — 0.4% | ||||||||
CRH America Finance Inc., 4.50%, 04/04/48 (Call 10/04/47)(a) | 400 | 348,526 |
Security | Par (000) | Value | ||||||
Building Materials (continued) | ||||||||
Johnson Controls International PLC | $ | 225 | $ | 203,132 | ||||
4.63%, 07/02/44 (Call 01/02/44) | 185 | 172,786 | ||||||
4.95%, 07/02/64 (Call 01/02/64)(f) | 235 | 207,303 | ||||||
5.13%, 09/14/45 (Call 03/14/45) | 270 | 268,621 | ||||||
6.00%, 01/15/36(b) | 100 | 112,145 | ||||||
Lafarge SA, 7.13%, 07/15/36 | 165 | 188,241 | ||||||
Martin Marietta Materials Inc., 4.25%, 12/15/47 (Call 06/15/47) | 250 | 208,025 | ||||||
Masco Corp., 4.50%, 05/15/47 (Call 11/15/46) | 100 | 85,974 | ||||||
Owens Corning | 335 | 260,445 | ||||||
7.00%, 12/01/36 | 173 | 187,645 | ||||||
Vulcan Materials Co. | 430 | 368,897 | ||||||
4.70%, 03/01/48 (Call 09/01/47) | 25 | 22,253 | ||||||
|
| |||||||
2,633,993 | ||||||||
Chemicals — 1.6% | ||||||||
Albemarle Corp., 5.45%, 12/01/44 (Call 06/01/44) | 110 | 110,284 | ||||||
Braskem America Finance Co., 7.13%, 07/22/41 (Call 01/22/41)(a) | 200 | 233,500 | ||||||
Dow Chemical Co. (The) | 375 | 348,843 | ||||||
4.38%, 11/15/42 (Call 05/15/42) | 540 | 485,949 | ||||||
4.63%, 10/01/44 (Call 04/01/44) | 235 | 217,149 | ||||||
5.25%, 11/15/41 (Call 08/15/41) | 375 | 377,952 | ||||||
5.55%, 11/30/48 (Call 05/30/48)(a) | 40 | 42,087 | ||||||
7.38%, 11/01/29 | 210 | 258,975 | ||||||
9.40%, 05/15/39 | 180 | 263,303 | ||||||
DowDuPont Inc. | 475 | 502,638 | ||||||
5.42%, 11/15/48 (Call 05/15/48) | 670 | 715,082 | ||||||
Eastman Chemical Co. | 320 | 297,870 | ||||||
4.80%, 09/01/42 (Call 03/01/42) | 208 | 197,114 | ||||||
International Flavors & Fragrances Inc. | 200 | 183,011 | ||||||
5.00%, 09/26/48 (Call 03/26/48)(b) | 110 | 109,122 | ||||||
Lubrizol Corp. (The), 6.50%, 10/01/34 | 120 | 157,607 | ||||||
LYB International Finance BV | 370 | 347,382 | ||||||
5.25%, 07/15/43 | 240 | 234,851 | ||||||
LyondellBasell Industries NV, 4.63%, 02/26/55 (Call 08/26/54) | 390 | 335,550 | ||||||
Methanex Corp., 5.65%, 12/01/44 (Call 06/01/44) | 150 | 135,348 | ||||||
Mexichem SAB de CV, 5.88%, 09/17/44(a) | 200 | 193,430 | ||||||
Mosaic Co. (The) | 333 | 345,698 | ||||||
5.63%, 11/15/43 (Call 05/15/43)(b) | 260 | 264,667 | ||||||
Nutrien Ltd. | 337 | 303,870 | ||||||
4.90%, 06/01/43 (Call 12/01/42) | 275 | 264,401 | ||||||
5.25%, 01/15/45 (Call 07/15/44) | 4 | 3,980 | ||||||
5.63%, 12/01/40 | 200 | 208,565 | ||||||
5.88%, 12/01/36 | 101 | 109,651 | ||||||
6.13%, 01/15/41 (Call 07/15/40) | 225 | 249,151 | ||||||
OCP SA, 6.88%, 04/25/44(a) | 200 | 218,000 | ||||||
Praxair Inc., 3.55%, 11/07/42 (Call 05/07/42)(b) | 300 | 276,840 | ||||||
Rohm & Haas Co., 7.85%, 07/15/29 | 100 | 125,345 | ||||||
RPM International Inc., 4.25%, 01/15/48 (Call 07/15/47) | 150 | 123,808 |
SCHEDULE OF INVESTMENTS | 57 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Chemicals (continued) | ||||||||
Sherwin-Williams Co. (The) | $ | 200 | $ | 170,382 | ||||
4.50%, 06/01/47 (Call 12/01/46) | 494 | 462,242 | ||||||
4.55%, 08/01/45 (Call 02/01/45) | 45 | 41,243 | ||||||
Syngenta Finance NV, 5.68%, 04/24/48 (Call 10/24/47)(a) | 300 | 267,992 | ||||||
Westlake Chemical Corp. | 265 | 224,120 | ||||||
5.00%, 08/15/46 (Call 02/15/46) | 200 | 186,169 | ||||||
|
| |||||||
9,593,171 | ||||||||
Commercial Services — 1.3% | ||||||||
California Institute of Technology | 12 | 12,563 | ||||||
4.70%, 11/01/11 | 100 | 105,435 | ||||||
Cleveland Clinic Foundation (The), 4.86%, 01/01/14 | 200 | 206,447 | ||||||
DP World Ltd. | 200 | 201,500 | ||||||
6.85%, 07/02/37(a)(b) | 600 | 712,500 | ||||||
Ecolab Inc. | 50 | 44,877 | ||||||
3.95%, 12/01/47 (Call 06/01/47) | 430 | 419,244 | ||||||
5.50%, 12/08/41 | 66 | 76,052 | ||||||
Equifax Inc., 7.00%, 07/01/37 | 115 | 125,904 | ||||||
ERAC USA Finance LLC, 7.00%, 10/15/37(a)(b) | 900 | 1,105,314 | ||||||
George Washington University (The) | 16 | 17,857 | ||||||
Series 2018, 4.13%, 09/15/48 (Call 03/15/48) | 575 | 577,172 | ||||||
Johns Hopkins University, Series 2013, 4.08%, 07/01/53 | 11 | 10,748 | ||||||
Massachusetts Institute of Technology | 9 | 9,287 | ||||||
4.68%, 07/01/14 | 150 | 162,963 | ||||||
5.60%, 07/01/11(b) | 375 | 485,774 | ||||||
Moody’s Corp., 5.25%, 07/15/44 | 250 | 270,137 | ||||||
Northwestern University, 4.64%, 12/01/44 | 355 | 395,876 | ||||||
President and Fellows of Harvard College | 375 | 334,408 | ||||||
3.30%, 07/15/56 (Call 01/15/56) | 250 | 220,073 | ||||||
Princeton University, 5.70%, 03/01/39 | 300 | 377,377 | ||||||
S&P Global Inc. | 200 | 204,675 | ||||||
6.55%, 11/15/37 | 161 | 202,876 | ||||||
Trustees of Dartmouth College, 3.47%, 06/01/46 | 100 | 92,063 | ||||||
University of Notre Dame du Lac | ||||||||
Series 2015, 3.44%, 02/15/45 | 9 | 8,432 | ||||||
Series 2017, 3.39%, 02/15/48 (Call 08/15/47) | 200 | 186,475 | ||||||
University of Southern California | 325 | 296,183 | ||||||
5.25%, 10/01/11 | 150 | 175,380 | ||||||
Verisk Analytics Inc., 5.50%, 06/15/45 (Call 12/15/44) | 111 | 113,646 | ||||||
Wesleyan University, 4.78%, 07/01/16 | 50 | 49,344 | ||||||
William Marsh Rice University | 301 | 287,196 | ||||||
3.77%, 05/15/55 | 125 | 120,093 | ||||||
|
| |||||||
7,607,871 | ||||||||
Computers — 1.6% | ||||||||
Apple Inc. | 575 | 518,834 | ||||||
3.75%, 09/12/47 (Call 03/12/47) | 395 | 371,854 | ||||||
3.75%, 11/13/47 (Call 05/13/47) | 250 | 236,421 | ||||||
3.85%, 05/04/43 | 850 | 822,746 |
Security | Par (000) | Value | ||||||
Computers (continued) | ||||||||
3.85%, 08/04/46 (Call 02/04/46) | $ | 550 | $ | 529,427 | ||||
4.25%, 02/09/47 (Call 08/09/46)(b) | 450 | 460,186 | ||||||
4.38%, 05/13/45 | 625 | 647,928 | ||||||
4.45%, 05/06/44 | 425 | 445,482 | ||||||
4.50%, 02/23/36 (Call 08/23/35) | 275 | 295,928 | ||||||
4.65%, 02/23/46 (Call 08/23/45) | 1,200 | 1,293,581 | ||||||
Dell International LLC/EMC Corp. | 450 | 509,098 | ||||||
8.35%, 07/15/46 (Call 01/15/46)(a) | 625 | 731,343 | ||||||
Hewlett Packard Enterprise Co. | 285 | 293,411 | ||||||
6.35%, 10/15/45 (Call 04/15/45) | 475 | 480,991 | ||||||
HP Inc., 6.00%, 09/15/41(b) | 370 | 377,382 | ||||||
International Business Machines Corp. | 535 | 509,730 | ||||||
4.70%, 02/19/46(b) | 200 | 210,414 | ||||||
5.60%, 11/30/39(b) | 195 | 225,189 | ||||||
5.88%, 11/29/32 | 291 | 349,259 | ||||||
7.13%, 12/01/96(b) | 75 | 92,534 | ||||||
Seagate HDD Cayman, 5.75%, 12/01/34 (Call 06/01/34) | 165 | 146,385 | ||||||
|
| |||||||
9,548,123 | ||||||||
Cosmetics & Personal Care — 0.4% | ||||||||
Colgate-Palmolive Co. | 175 | 172,091 | ||||||
4.00%, 08/15/45 | 200 | 205,046 | ||||||
Estee Lauder Companies Inc. (The) | 50 | 46,573 | ||||||
4.15%, 03/15/47 (Call 09/15/46) | 125 | 125,399 | ||||||
4.38%, 06/15/45 (Call 12/15/44) | 275 | 283,379 | ||||||
6.00%, 05/15/37 | 180 | 221,170 | ||||||
Procter & Gamble Co. (The), 3.50%, 10/25/47(b) | 425 | 406,384 | ||||||
Unilever Capital Corp., 5.90%, 11/15/32 | 575 | 705,039 | ||||||
|
| |||||||
2,165,081 | ||||||||
Distribution & Wholesale — 0.1% | ||||||||
WW Grainger Inc. | 250 | 223,976 | ||||||
4.20%, 05/15/47 (Call 11/15/46) | 205 | 198,107 | ||||||
4.60%, 06/15/45 (Call 12/15/44) | 170 | 175,117 | ||||||
|
| |||||||
597,200 | ||||||||
Diversified Financial Services — 1.8% | ||||||||
American Express Co., 4.05%, 12/03/42 | 370 | 364,039 | ||||||
Blackstone Holdings Finance Co. LLC, 4.45%, 07/15/45(a) | 400 | 370,128 | ||||||
Brookfield Finance Inc., 4.70%, 09/20/47 (Call 03/20/47) | 305 | 278,621 | ||||||
Carlyle Holdings II Finance LLC, 5.63%, 03/30/43(a) | 135 | 129,743 | ||||||
CME Group Inc. | 180 | 183,313 | ||||||
5.30%, 09/15/43 (Call 03/15/43) | 300 | 357,595 | ||||||
Credit Suisse USA Inc., 7.13%, 07/15/32 | 268 | 345,520 | ||||||
FMR LLC, 6.50%, 12/14/40(a) | 500 | 619,426 | ||||||
GE Capital International Funding Co. Unlimited Co., | 3,565 | 3,219,125 | ||||||
Invesco Finance PLC, 5.38%, 11/30/43 | 141 | 145,389 | ||||||
Jefferies Group LLC | 220 | 217,071 | ||||||
6.50%, 01/20/43 | 150 | 147,659 | ||||||
Jefferies Group LLC/Jefferies Group Capital Finance Inc., 4.15%, 01/23/30 | 250 | 218,432 | ||||||
KKR Group Finance Co. II LLC, 5.50%, 02/01/43 | 500 | 511,928 |
58 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Diversified Financial Services (continued) | ||||||||
Legg Mason Inc., 5.63%, 01/15/44 | $ | 210 | $ | 204,445 | ||||
Mastercard Inc. | 150 | 148,107 | ||||||
3.95%, 02/26/48 (Call 08/26/47) | 145 | 145,731 | ||||||
National Rural Utilities Cooperative Finance Corp. | 50 | 51,607 | ||||||
4.30%, 03/15/49 (Call 09/15/48) | 300 | 305,782 | ||||||
Series C, 8.00%, 03/01/32 | 271 | 371,594 | ||||||
Raymond James Financial Inc., 4.95%, 07/15/46 | 310 | 310,590 | ||||||
Visa Inc. | 290 | 275,541 | ||||||
4.15%, 12/14/35 (Call 06/14/35) | 585 | 612,296 | ||||||
4.30%, 12/14/45 (Call 06/14/45) | 875 | 918,146 | ||||||
Western Union Co. (The) | 265 | 268,315 | ||||||
6.20%, 06/21/40 | 90 | 85,603 | ||||||
|
| |||||||
10,805,746 | ||||||||
Electric — 12.0% | ||||||||
Abu Dhabi National Energy Co. PJSC, 4.88%, 04/23/30(a) | 800 | 831,000 | ||||||
AEP Transmission Co. LLC | 200 | 187,757 | ||||||
4.00%, 12/01/46 (Call 06/01/46) | 150 | 145,135 | ||||||
4.25%, 09/15/48 (Call 03/15/48) | 150 | 151,816 | ||||||
Alabama Power Co. | 150 | 138,557 | ||||||
3.85%, 12/01/42 | 100 | 93,657 | ||||||
4.10%, 01/15/42 | 10 | 9,563 | ||||||
4.15%, 08/15/44 (Call 02/15/44) | 302 | 297,114 | ||||||
4.30%, 01/02/46 (Call 07/02/45) | 250 | 252,356 | ||||||
6.00%, 03/01/39 | 270 | 323,804 | ||||||
6.13%, 05/15/38 | 200 | 241,167 | ||||||
Series B, 3.70%, 12/01/47 (Call 06/01/47) | 25 | 22,967 | ||||||
Ameren Illinois Co. | 225 | 212,282 | ||||||
4.15%, 03/15/46 (Call 09/15/45) | 350 | 351,331 | ||||||
4.50%, 03/15/49 (Call 09/15/48) | 50 | 53,455 | ||||||
Appalachian Power Co. | 11 | 10,820 | ||||||
4.45%, 06/01/45 (Call 12/01/44) | 150 | 148,833 | ||||||
7.00%, 04/01/38 | 170 | 214,553 | ||||||
Series L, 5.80%, 10/01/35 | 25 | 27,948 | ||||||
Arizona Public Service Co. | 275 | 250,825 | ||||||
4.25%, 03/01/49 (Call 09/01/48) | 100 | 99,023 | ||||||
4.35%, 11/15/45 (Call 05/15/45) | 45 | 45,156 | ||||||
4.50%, 04/01/42 (Call 10/01/41) | 326 | 331,850 | ||||||
5.05%, 09/01/41 (Call 03/01/41) | 160 | 172,816 | ||||||
Avista Corp., 4.35%, 06/01/48 (Call 12/01/47) | 50 | 50,649 | ||||||
Baltimore Gas & Electric Co., 3.50%, 08/15/46 (Call 02/15/46) | 285 | 253,999 | ||||||
Berkshire Hathaway Energy Co. | 475 | 433,338 | ||||||
4.45%, 01/15/49 (Call 07/15/48) | 575 | 578,529 | ||||||
4.50%, 02/01/45 (Call 08/01/44) | 200 | 204,438 | ||||||
5.15%, 11/15/43 (Call 05/15/43) | 120 | 132,579 | ||||||
5.95%, 05/15/37 | 350 | 417,499 | ||||||
6.13%, 04/01/36 | 900 | 1,093,616 | ||||||
Black Hills Corp. | 150 | 137,964 | ||||||
4.35%, 05/01/33 (Call 02/01/33) | 250 | 249,609 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
CenterPoint Energy Houston Electric LLC | $ | 225 | $ | 207,247 | ||||
3.95%, 03/01/48 (Call 09/01/47) | 50 | 49,064 | ||||||
4.25%, 02/01/49 (Call 08/01/48) | 200 | 205,841 | ||||||
4.50%, 04/01/44 (Call 10/01/43) | 225 | 237,754 | ||||||
Cleco Corporate Holdings LLC, 4.97%, 05/01/46 (Call 11/01/45) | 150 | 146,719 | ||||||
Cleveland Electric Illuminating Co. (The) | 100 | 101,727 | ||||||
5.95%, 12/15/36 | 100 | 112,633 | ||||||
CMS Energy Corp. | 100 | 99,464 | ||||||
4.88%, 03/01/44 (Call 09/01/43) | 150 | 158,355 | ||||||
Cometa Energia SA de CV, 6.38%, 04/24/35 (Call 01/24/35)(a) | 197 | 189,257 | ||||||
Comision Federal de Electricidad, 6.13%, 06/16/45(a) | 400 | 405,000 | ||||||
Commonwealth Edison Co. | 100 | 92,205 | ||||||
3.70%, 03/01/45 (Call 09/01/44) | 200 | 186,330 | ||||||
3.80%, 10/01/42 (Call 04/01/42) | 200 | 188,944 | ||||||
4.00%, 03/01/48 (Call 09/01/47) | 450 | 440,895 | ||||||
4.00%, 03/01/49 (Call 09/01/48) | 250 | 243,905 | ||||||
4.35%, 11/15/45 (Call 05/15/45) | 150 | 154,112 | ||||||
4.60%, 08/15/43 (Call 02/15/43) | 100 | 106,193 | ||||||
4.70%, 01/15/44 (Call 04/15/43) | 235 | 252,787 | ||||||
Series 123, 3.75%, 08/15/47 (Call 02/15/47) | 225 | 210,408 | ||||||
Connecticut Light & Power Co. (The) | 100 | 99,759 | ||||||
4.30%, 04/15/44 (Call 10/15/43) | 70 | 72,752 | ||||||
Consolidated Edison Co. of New York Inc. | 210 | 195,201 | ||||||
3.95%, 03/01/43 (Call 09/01/42) | 200 | 189,126 | ||||||
4.45%, 03/15/44 (Call 09/15/43) | 315 | 320,327 | ||||||
4.50%, 12/01/45 (Call 06/01/45) | 207 | 210,965 | ||||||
4.50%, 05/15/58 (Call 11/15/57) | 200 | 196,506 | ||||||
4.63%, 12/01/54 (Call 06/01/54) | 125 | 125,216 | ||||||
5.70%, 06/15/40 | 300 | 348,427 | ||||||
Series05-A, 5.30%, 03/01/35 | 100 | 109,608 | ||||||
Series06-A, 5.85%, 03/15/36 | 225 | 263,503 | ||||||
Series06-B, 6.20%, 06/15/36 | 200 | 242,492 | ||||||
Series06-E, 5.70%, 12/01/36 | 75 | 85,291 | ||||||
Series07-A, 6.30%, 08/15/37 | 100 | 122,360 | ||||||
Series08-B, 6.75%, 04/01/38 | 200 | 255,444 | ||||||
Series09-C, 5.50%, 12/01/39 | 200 | 226,470 | ||||||
Series12-A, 4.20%, 03/15/42 | 8 | 7,826 | ||||||
Series 2017, 3.88%, 06/15/47 (Call 12/15/46) | 210 | 195,480 | ||||||
Series C, 4.30%, 12/01/56 (Call 06/01/56) | 205 | 194,114 | ||||||
Series E, 4.65%, 12/01/48 (Call 06/01/48) | 50 | 52,421 | ||||||
Consumers Energy Co. | 200 | 175,779 | ||||||
3.95%, 05/15/43 (Call 11/15/42) | 75 | 74,481 | ||||||
3.95%, 07/15/47 (Call 01/15/47) | 200 | 197,611 | ||||||
4.35%, 04/15/49 (Call 10/15/48)(b) | 120 | 127,082 | ||||||
Delmarva Power & Light Co., 4.15%, 05/15/45 (Call 11/15/44) | 250 | 245,267 | ||||||
Dominion Energy Inc. | 75 | 75,991 | ||||||
7.00%, 06/15/38 | 230 | 286,764 | ||||||
Series B, 5.95%, 06/15/35 | 160 | 182,319 | ||||||
Series C, 4.05%, 09/15/42 (Call 03/15/42) | 250 | 230,322 |
SCHEDULE OF INVESTMENTS | 59 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Series C, 4.90%, 08/01/41 (Call 02/01/41) | $ | 272 | $ | 277,954 | ||||
Series E, 6.30%, 03/15/33 | 175 | 207,883 | ||||||
Series F, 5.25%, 08/01/33 | 305 | 332,235 | ||||||
DTE Electric Co. | 200 | 188,409 | ||||||
3.70%, 06/01/46 (Call 12/01/45)(b) | 135 | 125,544 | ||||||
3.95%, 03/01/49 (Call 09/01/48) | 435 | 424,807 | ||||||
4.30%, 07/01/44 (Call 01/01/44) | 103 | 105,368 | ||||||
Series A, 4.00%, 04/01/43 (Call 10/01/42) | 100 | 99,070 | ||||||
Series A, 4.05%, 05/15/48 (Call 11/15/47) | 190 | 188,210 | ||||||
DTE Energy Co., 6.38%, 04/15/33 | 135 | 162,602 | ||||||
Duke Energy Carolinas LLC | 250 | 232,838 | ||||||
3.75%, 06/01/45 (Call 12/01/44) | 165 | 155,366 | ||||||
3.88%, 03/15/46 (Call 09/15/45) | 250 | 240,082 | ||||||
3.95%, 03/15/48 (Call 09/15/47) | 285 | 278,004 | ||||||
4.00%, 09/30/42 (Call 03/30/42) | 250 | 245,567 | ||||||
4.25%, 12/15/41 (Call 06/15/41) | 300 | 305,346 | ||||||
5.30%, 02/15/40 | 260 | 300,813 | ||||||
6.00%, 01/15/38 | 57 | 69,595 | ||||||
6.05%, 04/15/38 | 300 | 371,241 | ||||||
6.10%, 06/01/37 | 100 | 122,090 | ||||||
6.45%, 10/15/32 | 101 | 126,187 | ||||||
Duke Energy Corp. | 320 | 286,687 | ||||||
4.80%, 12/15/45 (Call 06/15/45) | 201 | 207,691 | ||||||
Duke Energy Florida LLC | 230 | 203,530 | ||||||
3.85%, 11/15/42 (Call 05/15/42) | 280 | 268,670 | ||||||
5.65%, 04/01/40 | 150 | 178,722 | ||||||
6.35%, 09/15/37 | 100 | 126,319 | ||||||
6.40%, 06/15/38 | 300 | 385,791 | ||||||
Duke Energy Indiana LLC | 145 | 135,856 | ||||||
6.12%, 10/15/35 | 250 | 296,788 | ||||||
6.35%, 08/15/38 | 46 | 58,906 | ||||||
6.45%, 04/01/39 | 150 | 188,756 | ||||||
Series UUU, 4.20%, 03/15/42 (Call 09/15/41)(b) | 125 | 123,269 | ||||||
Series WWW, 4.90%, 07/15/43 (Call 01/15/43) | 35 | 38,558 | ||||||
Duke Energy Ohio Inc., 3.70%, 06/15/46 (Call 12/15/45) | 10 | 9,237 | ||||||
Duke Energy Progress LLC | 250 | 234,310 | ||||||
4.10%, 05/15/42 (Call 11/15/41) | 150 | 148,873 | ||||||
4.10%, 03/15/43 (Call 09/15/42) | 186 | 184,580 | ||||||
4.15%, 12/01/44 (Call 06/01/44) | 175 | 174,430 | ||||||
4.20%, 08/15/45 (Call 02/15/45) | 250 | 251,632 | ||||||
4.38%, 03/30/44 (Call 09/30/43) | 150 | 154,798 | ||||||
6.30%, 04/01/38 | 250 | 311,607 | ||||||
El Paso Electric Co. | 100 | 103,124 | ||||||
6.00%, 05/15/35(b) | 150 | 168,995 | ||||||
Electricite de France SA | 625 | 601,987 | ||||||
4.88%, 01/22/44(a) | 900 | 863,221 | ||||||
5.00%, 09/21/48 (Call 03/21/48)(a)(b) | 1,200 | 1,180,452 | ||||||
Emera U.S. Finance LP, 4.75%, 06/15/46 (Call 12/15/45) | 520 | 509,143 | ||||||
Enel Finance International NV | 735 | 652,601 | ||||||
4.88%, 06/14/29(a) | 800 | 795,962 | ||||||
6.00%, 10/07/39(a)(b) | 275 | 285,606 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Entergy Louisiana LLC | $ | 215 | $ | 198,625 | ||||
4.00%, 03/15/33 (Call 12/15/32) | 500 | 507,826 | ||||||
4.20%, 09/01/48 (Call 03/01/48) | 220 | 220,603 | ||||||
4.95%, 01/15/45 (Call 01/15/25) | 100 | 103,644 | ||||||
Exelon Corp. | 350 | 340,765 | ||||||
4.95%, 06/15/35 (Call 12/15/34) | 225 | 231,108 | ||||||
5.10%, 06/15/45 (Call 12/15/44) | 209 | 221,681 | ||||||
5.63%, 06/15/35 | 285 | 315,401 | ||||||
Exelon Generation Co. LLC | 270 | 268,106 | ||||||
5.75%, 10/01/41 (Call 04/01/41) | 20 | 19,771 | ||||||
6.25%, 10/01/39 | 200 | 211,578 | ||||||
FirstEnergy Corp. | ||||||||
Series C, 4.85%, 07/15/47 (Call 01/15/47) | 700 | 722,307 | ||||||
Series C, 7.38%, 11/15/31 | 460 | 593,179 | ||||||
Florida Power & Light Co. | 305 | 290,390 | ||||||
3.80%, 12/15/42 (Call 06/15/42) | 250 | 241,229 | ||||||
3.95%, 03/01/48 (Call 09/01/47) | 105 | 104,273 | ||||||
3.99%, 03/01/49 (Call 09/01/48) | 500 | 497,001 | ||||||
4.05%, 06/01/42 (Call 12/01/41) | 200 | 200,930 | ||||||
4.05%, 10/01/44 (Call 04/01/44) | 250 | 251,663 | ||||||
4.13%, 02/01/42 (Call 08/01/41) | 260 | 265,350 | ||||||
4.13%, 06/01/48 (Call 12/01/47) | 260 | 265,537 | ||||||
4.95%, 06/01/35 | 200 | 222,782 | ||||||
5.25%, 02/01/41 (Call 08/01/40) | 200 | 232,675 | ||||||
5.65%, 02/01/37 | 96 | 114,928 | ||||||
5.69%, 03/01/40 | 124 | 152,233 | ||||||
5.95%, 02/01/38 | 350 | 434,952 | ||||||
Georgia Power Co. | 290 | 272,877 | ||||||
4.30%, 03/15/43 | 271 | 248,249 | ||||||
Series10-C, 4.75%, 09/01/40 | 263 | 259,118 | ||||||
Iberdrola International BV, 6.75%, 07/15/36 | 150 | 180,404 | ||||||
Indiana Michigan Power Co. | 175 | 173,556 | ||||||
6.05%, 03/15/37 | 105 | 121,968 | ||||||
Series K, 4.55%, 03/15/46 (Call 09/15/45)(b) | 200 | 204,914 | ||||||
Series L, 3.75%, 07/01/47 (Call 01/01/47) | 150 | 136,339 | ||||||
Interstate Power & Light Co. | 325 | 289,826 | ||||||
6.25%, 07/15/39 | 30 | 36,633 | ||||||
ITC Holdings Corp., 5.30%, 07/01/43 (Call 01/01/43) | 75 | 82,494 | ||||||
Kansas City Power & Light Co. | 260 | 253,490 | ||||||
5.30%, 10/01/41 (Call 04/01/41) | 195 | 215,145 | ||||||
Kentucky Utilities Co., 5.13%, 11/01/40 (Call 05/01/40)(b) | 349 | 396,760 | ||||||
MidAmerican Energy Co. | 240 | 223,083 | ||||||
4.25%, 05/01/46 (Call 11/01/45) | 111 | 113,144 | ||||||
4.40%, 10/15/44 (Call 04/15/44) | 295 | 308,805 | ||||||
4.80%, 09/15/43 (Call 03/15/43) | 175 | 190,221 | ||||||
5.75%, 11/01/35 | 46 | 53,991 | ||||||
6.75%, 12/30/31 | 11 | 14,161 | ||||||
Minejesa Capital BV, 5.63%, 08/10/37(a) | 500 | 476,250 | ||||||
Mississippi Power Co., Series12-A, 4.25%, 03/15/42 | 350 | 321,764 | ||||||
Monongahela Power Co., 5.40%, 12/15/43 | 25 | 29,099 |
60 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
National Grid USA, 5.80%, 04/01/35 | $ | 180 | $ | 199,379 | ||||
Nevada Power Co., Series N, 6.65%, 04/01/36 | 300 | 378,386 | ||||||
New England Power Co., 3.80%, 12/05/47 (Call 06/05/47)(a)(b) | 900 | 823,271 | ||||||
Northern States Power Co./MN | 375 | 342,945 | ||||||
3.60%, 05/15/46 (Call 11/15/45) | 50 | 46,692 | ||||||
4.00%, 08/15/45 (Call 02/15/45) | 90 | 88,344 | ||||||
4.13%, 05/15/44 (Call 11/15/43) | 7 | 7,035 | ||||||
4.85%, 08/15/40 (Call 02/15/40) | 25 | 27,202 | ||||||
5.35%, 11/01/39 | 5 | 5,839 | ||||||
6.25%, 06/01/36 | 106 | 132,911 | ||||||
NorthWestern Corp., 4.18%, 11/15/44 (Call 05/15/44) | 171 | 168,268 | ||||||
NSTAR Electric Co. | 110 | 113,529 | ||||||
5.50%, 03/15/40 | 241 | 278,329 | ||||||
Oglethorpe Power Corp. | 50 | 44,776 | ||||||
4.25%, 04/01/46 (Call 10/01/45) | 50 | 45,283 | ||||||
4.55%, 06/01/44 | 500 | 466,052 | ||||||
5.25%, 09/01/50 | 25 | 26,148 | ||||||
5.38%, 11/01/40 | 175 | 187,962 | ||||||
5.95%, 11/01/39 | 25 | 28,170 | ||||||
Ohio Edison Co. | 250 | 310,934 | ||||||
8.25%, 10/15/38 | 65 | 92,214 | ||||||
Ohio Power Co., 4.15%, 04/01/48 (Call 10/01/47) | 75 | 74,780 | ||||||
Oklahoma Gas & Electric Co. | 250 | 231,229 | ||||||
4.15%, 04/01/47 (Call 10/01/46) | 405 | 393,176 | ||||||
Oncor Electric Delivery Co. LLC | 100 | 96,213 | ||||||
4.55%, 12/01/41 (Call 06/01/41) | 150 | 161,159 | ||||||
5.25%, 09/30/40 | 305 | 352,028 | ||||||
5.30%, 06/01/42 (Call 12/01/41) | 200 | 232,764 | ||||||
7.25%, 01/15/33 | 150 | 200,668 | ||||||
PacifiCorp | 95 | 92,782 | ||||||
4.13%, 01/15/49 (Call 07/15/48) | 150 | 148,025 | ||||||
4.15%, 02/15/50 (Call 08/15/49) | 250 | 247,183 | ||||||
6.00%, 01/15/39 | 375 | 456,553 | ||||||
6.10%, 08/01/36 | 230 | 278,030 | ||||||
6.25%, 10/15/37 | 50 | 62,025 | ||||||
6.35%, 07/15/38 | 150 | 188,291 | ||||||
PECO Energy Co. | 250 | 241,610 | ||||||
4.15%, 10/01/44 (Call 04/01/44) | 200 | 199,711 | ||||||
5.95%, 10/01/36 | 111 | 132,045 | ||||||
Pennsylvania Electric Co., 6.15%, 10/01/38 | 75 | 85,473 | ||||||
Perusahaan Listrik Negara PT, 6.15%, 05/21/48(a) | 1,000 | 1,064,890 | ||||||
Potomac Electric Power Co. | 116 | 115,075 | ||||||
6.50%, 11/15/37 | 175 | 219,674 | ||||||
PPL Capital Funding Inc. | 350 | 313,749 | ||||||
4.70%, 06/01/43 (Call 12/01/42) | 50 | 49,636 | ||||||
5.00%, 03/15/44 (Call 09/15/43) | 300 | 311,287 | ||||||
PPL Electric Utilities Corp. | 200 | 196,040 | ||||||
4.13%, 06/15/44 (Call 12/15/43) | 50 | 49,835 |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
4.15%, 06/15/48 (Call 12/15/47) | $ | 205 | $ | 207,391 | ||||
6.25%, 05/15/39 | 161 | 202,206 | ||||||
Progress Energy Inc. | 110 | 139,830 | ||||||
7.75%, 03/01/31 | 259 | 344,089 | ||||||
PSEG Power LLC, 8.63%, 04/15/31 | 235 | 307,451 | ||||||
Public Service Co. of Colorado | 225 | 209,019 | ||||||
3.80%, 06/15/47 (Call 12/15/46) | 300 | 284,498 | ||||||
4.10%, 06/15/48 (Call 12/15/47) | 250 | 251,657 | ||||||
4.30%, 03/15/44 (Call 09/15/43) | 150 | 154,011 | ||||||
4.75%, 08/15/41 (Call 02/15/41) | 5 | 5,248 | ||||||
6.50%, 08/01/38 | 100 | 129,155 | ||||||
Series 17, 6.25%, 09/01/37 | 60 | 75,888 | ||||||
Public Service Co. of Oklahoma, Series G, 6.63%, 11/15/37 | 50 | 61,921 | ||||||
Public Service Electric & Gas Co. | 220 | 203,615 | ||||||
3.65%, 09/01/42 (Call 03/01/42) | 75 | 70,367 | ||||||
3.80%, 03/01/46 (Call 09/01/45) | 225 | 214,026 | ||||||
3.95%, 05/01/42 (Call 11/01/41) | 285 | 279,872 | ||||||
4.05%, 05/01/48 (Call 11/01/47) | 155 | 155,751 | ||||||
4.15%, 11/01/45 (Call 05/01/45) | 25 | 24,522 | ||||||
5.50%, 03/01/40 | 50 | 58,380 | ||||||
5.80%, 05/01/37 | 150 | 179,833 | ||||||
Puget Sound Energy Inc. | 111 | 113,602 | ||||||
4.43%, 11/15/41 (Call 05/15/41) | 50 | 50,813 | ||||||
5.64%, 04/15/41 (Call 10/15/40) | 235 | 278,666 | ||||||
5.76%, 10/01/39 | 200 | 237,534 | ||||||
5.80%, 03/15/40 | 56 | 67,748 | ||||||
6.27%, 03/15/37 | 5 | 6,205 | ||||||
San Diego Gas & Electric Co. | 100 | 95,268 | ||||||
4.50%, 08/15/40 | 100 | 98,638 | ||||||
6.00%, 06/01/39 | 163 | 185,152 | ||||||
Series RRR, 3.75%, 06/01/47 (Call 12/01/46) | 200 | 179,758 | ||||||
Saudi Electricity Global Sukuk Co. 3, 5.50%, 04/08/44(a) | 600 | 622,500 | ||||||
Sempra Energy | 650 | 571,222 | ||||||
4.00%, 02/01/48 (Call 08/01/47) | 435 | 379,019 | ||||||
6.00%, 10/15/39 | 275 | 309,712 | ||||||
South Carolina Electric & Gas Co. | 175 | 180,170 | ||||||
4.60%, 06/15/43 (Call 12/15/42) | 166 | 173,359 | ||||||
5.10%, 06/01/65 (Call 12/01/64) | 115 | 125,217 | ||||||
5.30%, 05/15/33 | 5 | 5,498 | ||||||
5.45%, 02/01/41 (Call 08/01/40) | 95 | 108,496 | ||||||
6.05%, 01/15/38 | 298 | 355,001 | ||||||
Southern California Edison Co. | 300 | 270,913 | ||||||
4.05%, 03/15/42 (Call 09/15/41) | 95 | 87,885 | ||||||
4.50%, 09/01/40 (Call 03/01/40) | 48 | 47,151 | ||||||
4.65%, 10/01/43 (Call 04/01/43) | 200 | 199,095 | ||||||
5.50%, 03/15/40(b) | 217 | 234,578 | ||||||
5.63%, 02/01/36 | 150 | 160,792 | ||||||
6.00%, 01/15/34 | 266 | 293,567 | ||||||
6.05%, 03/15/39 | 150 | 167,136 | ||||||
6.65%, 04/01/29 | 250 | 277,225 | ||||||
Series04-G, 5.75%, 04/01/35 | 105 | 111,878 | ||||||
Series05-E, 5.35%, 07/15/35 | 150 | 154,447 |
SCHEDULE OF INVESTMENTS | 61 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Electric (continued) | ||||||||
Series06-E, 5.55%, 01/15/37 | $ | 250 | $ | 267,075 | ||||
Series08-A, 5.95%, 02/01/38 | 185 | 205,543 | ||||||
Series13-A, 3.90%, 03/15/43 (Call 09/15/42) | 305 | 272,055 | ||||||
Series C, 3.60%, 02/01/45 (Call 08/01/44) | 255 | 217,630 | ||||||
Series C, 4.13%, 03/01/48 (Call 09/01/47) | 100 | 92,173 | ||||||
Southern Co. (The) | ||||||||
4.25%, 07/01/36 (Call 01/01/36) | 300 | 286,832 | ||||||
4.40%, 07/01/46 (Call 01/01/46) | 350 | 335,859 | ||||||
Southern Power Co. | ||||||||
5.15%, 09/15/41 | 325 | 322,904 | ||||||
5.25%, 07/15/43 | 50 | 49,779 | ||||||
Series F, 4.95%, 12/15/46 (Call 06/15/46) | 25 | 23,974 | ||||||
Southwestern Electric Power Co. | ||||||||
6.20%, 03/15/40 | 150 | 176,940 | ||||||
Series J, 3.90%, 04/01/45 (Call 10/01/44) | 200 | 181,085 | ||||||
Series L, 3.85%, 02/01/48 (Call 08/01/47) | 100 | 89,639 | ||||||
Southwestern Public Service Co. | ||||||||
3.40%, 08/15/46 (Call 02/15/46) | 360 | 313,811 | ||||||
3.70%, 08/15/47 (Call 02/15/47) | 250 | 230,507 | ||||||
4.50%, 08/15/41 (Call 02/15/41) | 100 | 103,103 | ||||||
Series 6, 4.40%, 11/15/48 (Call 05/15/48) | 205 | 212,072 | ||||||
State Grid Overseas Investment 2016 Ltd., 4.00%, 05/04/47(a) | 500 | 476,802 | ||||||
Tampa Electric Co. | ||||||||
4.10%, 06/15/42 (Call 12/15/41) | 75 | 71,295 | ||||||
4.20%, 05/15/45 (Call 11/15/44) | 350 | 329,087 | ||||||
4.35%, 05/15/44 (Call 11/15/43) | 150 | 146,088 | ||||||
4.45%, 06/15/49 (Call 12/15/48) | 165 | 164,086 | ||||||
Toledo Edison Co. (The), 6.15%, 05/15/37 | 220 | 259,752 | ||||||
TransAlta Corp., 6.50%, 03/15/40 | 150 | 147,042 | ||||||
Union Electric Co. | ||||||||
3.90%, 09/15/42 (Call 03/15/42) | 250 | 245,322 | ||||||
8.45%, 03/15/39 | 111 | 164,583 | ||||||
Virginia Electric & Power Co. | ||||||||
4.00%, 01/15/43 (Call 07/15/42) | 116 | 110,114 | ||||||
4.45%, 02/15/44 (Call 08/15/43) | 150 | 152,291 | ||||||
4.60%, 12/01/48 (Call 06/01/48) | 100 | 104,347 | ||||||
8.88%, 11/15/38 | 300 | 457,519 | ||||||
Series A, 6.00%, 05/15/37 | 75 | 89,895 | ||||||
Series B, 4.20%, 05/15/45 (Call 11/15/44) | 7 | 6,869 | ||||||
Series B, 6.00%, 01/15/36 | 250 | 296,618 | ||||||
Series C, 4.00%, 11/15/46 (Call 05/15/46) | 60 | 57,374 | ||||||
Series D, 4.65%, 08/15/43 (Call 02/15/43) | 71 | 74,323 | ||||||
Westar Energy Inc. | 5 | 4,908 | ||||||
4.13%, 03/01/42 (Call 09/01/41)(b) | 300 | 297,052 | ||||||
4.25%, 12/01/45 (Call 06/01/45) | 275 | 277,323 | ||||||
4.63%, 09/01/43 (Call 03/01/43) | 105 | 109,748 | ||||||
Wisconsin Electric Power Co., 4.30%, 10/15/48 (Call 04/15/48)(b) | 170 | 175,230 | ||||||
Wisconsin Power & Light Co., 6.38%, 08/15/37 | 235 | 294,605 | ||||||
Wisconsin Public Service Corp., 4.75%, 11/01/44 (Call 05/01/44) | 205 | 222,114 | ||||||
Xcel Energy Inc., 6.50%, 07/01/36 | 200 | 245,837 | ||||||
|
| |||||||
70,659,669 | ||||||||
Electronics — 0.3% | ||||||||
Corning Inc. | ||||||||
4.38%, 11/15/57 (Call 05/15/57) | 300 | 262,488 | ||||||
4.70%, 03/15/37 (Call 09/15/36) | 60 | 59,064 | ||||||
4.75%, 03/15/42 | 100 | 98,109 |
Security | Par (000) | Value | ||||||
Electronics (continued) | ||||||||
5.35%, 11/15/48 (Call 05/15/48) | $ | 100 | $ | 106,623 | ||||
5.75%, 08/15/40 | 200 | 215,997 | ||||||
Fortive Corp., 4.30%, 06/15/46 (Call 12/15/45) | 225 | 212,869 | ||||||
Honeywell International Inc., 3.81%, 11/21/47 (Call 05/21/47) | 300 | 291,249 | ||||||
Tyco Electronics Group SA, 7.13%, 10/01/37 | 200 | 256,142 | ||||||
|
| |||||||
1,502,541 | ||||||||
Engineering & Construction — 0.1% | ||||||||
Mexico City Airport Trust, 5.50%, 07/31/47 (Call 01/31/47)(a) | 708 | 608,880 | ||||||
|
| |||||||
Environmental Control — 0.1% | ||||||||
Republic Services Inc., 5.70%, 05/15/41 (Call 11/15/40) | 30 | 34,904 | ||||||
Waste Management Inc. | ||||||||
3.90%, 03/01/35 (Call 09/01/34) | 150 | 145,885 | ||||||
4.10%, 03/01/45 (Call 09/01/44) | 410 | 401,574 | ||||||
|
| |||||||
582,363 | ||||||||
Food — 1.9% | ||||||||
Ahold Finance USA LLC, 6.88%, 05/01/29 | 11 | 12,937 | ||||||
Campbell Soup Co. | ||||||||
3.80%, 08/02/42 | 76 | 57,644 | ||||||
4.80%, 03/15/48 (Call 09/15/47) | 355 | 311,076 | ||||||
Conagra Brands Inc. | ||||||||
5.30%, 11/01/38 (Call 05/01/38) | 480 | 456,044 | ||||||
5.40%, 11/01/48 (Call 05/01/48)(b) | 60 | 56,297 | ||||||
8.25%, 09/15/30 | 100 | 128,121 | ||||||
General Mills Inc. | ||||||||
4.15%, 02/15/43 (Call 08/15/42) | 30 | 26,034 | ||||||
4.55%, 04/17/38 (Call 10/17/37) | 295 | 276,497 | ||||||
4.70%, 04/17/48 (Call 10/17/47) | 250 | 233,103 | ||||||
5.40%, 06/15/40 | 190 | 193,111 | ||||||
Grupo Bimbo SAB de CV, 4.70%, 11/10/47 (Call 05/10/47)(a) | 200 | 184,325 | ||||||
Hershey Co. (The), 3.38%, 08/15/46 (Call 02/15/46) | 200 | 179,259 | ||||||
Ingredion Inc., 6.63%, 04/15/37 | 50 | 60,036 | ||||||
JM Smucker Co. (The) | ||||||||
4.25%, 03/15/35(b) | 325 | 295,639 | ||||||
4.38%, 03/15/45(b) | 100 | 89,754 | ||||||
Kellogg Co. | ||||||||
4.50%, 04/01/46(b) | 225 | 204,996 | ||||||
Series B, 7.45%, 04/01/31 | 180 | 227,449 | ||||||
Koninklijke Ahold Delhaize NV, 5.70%, 10/01/40 | 117 | 125,629 | ||||||
Kraft Heinz Foods Co. | ||||||||
4.38%, 06/01/46 (Call 12/01/45)(b) | 1,115 | 924,731 | ||||||
4.63%, 01/30/29 (Call 10/30/28) | 550 | 551,565 | ||||||
5.00%, 07/15/35 (Call 01/15/35) | 400 | 378,991 | ||||||
5.00%, 06/04/42 | 500 | 453,495 | ||||||
5.20%, 07/15/45 (Call 01/15/45) | 405 | 376,798 | ||||||
6.50%, 02/09/40 | 435 | 456,250 | ||||||
6.75%, 03/15/32 | 60 | 67,013 | ||||||
6.88%, 01/26/39 | 265 | 291,636 | ||||||
Kroger Co. (The) | ||||||||
3.88%, 10/15/46 (Call 04/15/46) | 215 | 170,830 | ||||||
4.45%, 02/01/47 (Call 08/01/46) | 300 | 264,473 | ||||||
5.00%, 04/15/42 (Call 10/15/41) | 125 | 117,331 | ||||||
5.15%, 08/01/43 (Call 02/01/43) | 185 | 177,057 | ||||||
5.40%, 07/15/40 (Call 01/15/40) | 200 | 197,727 | ||||||
5.40%, 01/15/49 (Call 07/15/48) | 100 | 98,553 | ||||||
6.90%, 04/15/38 | 250 | 287,165 | ||||||
7.50%, 04/01/31 | 150 | 182,872 | ||||||
McCormick & Co. Inc./MD, 4.20%, 08/15/47 (Call 02/15/47) | 100 | 90,391 | ||||||
Mondelez International Inc., 4.63%, 05/07/48 (Call 11/07/47) | 275 | 263,330 |
62 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Food (continued) | ||||||||
Nestle Holdings Inc. | ||||||||
3.90%, 09/24/38 (Call 03/24/38)(a)(b) | $ | 285 | $ | 283,495 | ||||
4.00%, 09/24/48 (Call 03/24/48)(a) | 500 | 495,498 | ||||||
Sysco Corp. | ||||||||
4.45%, 03/15/48 (Call 09/15/47) | 175 | 169,989 | ||||||
4.50%, 04/01/46 (Call 10/01/45) | 241 | 235,400 | ||||||
4.85%, 10/01/45 (Call 04/01/45) | 100 | 104,080 | ||||||
5.38%, 09/21/35 | 150 | 164,777 | ||||||
Tyson Foods Inc. | ||||||||
4.88%, 08/15/34 (Call 02/15/34) | 400 | 400,507 | ||||||
5.10%, 09/28/48 (Call 03/28/48) | 440 | 426,419 | ||||||
5.15%, 08/15/44 (Call 02/15/44) | 335 | 324,825 | ||||||
|
| |||||||
11,073,149 | ||||||||
Forest Products & Paper — 0.5% | ||||||||
Celulosa Arauco y Constitucion SA, 5.50%, 11/02/47 (Call 05/02/47) | 200 | 194,753 | ||||||
Domtar Corp., 6.75%, 02/15/44 (Call 08/15/43)(b) | 175 | 173,120 | ||||||
Georgia-Pacific LLC | ||||||||
7.75%, 11/15/29 | 185 | 245,959 | ||||||
8.88%, 05/15/31 | 214 | 312,445 | ||||||
International Paper Co. | ||||||||
4.35%, 08/15/48 (Call 02/15/48) | 235 | 208,404 | ||||||
4.40%, 08/15/47 (Call 02/15/47) | 335 | 299,720 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 200 | 190,640 | ||||||
5.00%, 09/15/35 (Call 03/15/35) | 110 | 110,775 | ||||||
5.15%, 05/15/46 (Call 11/15/45) | 175 | 172,270 | ||||||
6.00%, 11/15/41 (Call 05/15/41) | 185 | 198,429 | ||||||
7.30%, 11/15/39 | 320 | 389,123 | ||||||
8.70%, 06/15/38(b) | 35 | 46,683 | ||||||
Suzano Austria GmbH, 7.00%, 03/16/47 (Call 09/16/46)(a) | 200 | 219,050 | ||||||
|
| |||||||
2,761,371 | ||||||||
Gas — 1.0% | ||||||||
Atmos Energy Corp. | ||||||||
4.13%, 10/15/44 (Call 04/15/44) | 400 | 392,813 | ||||||
4.13%, 03/15/49 (Call 09/15/48) | 150 | 147,882 | ||||||
4.15%, 01/15/43 (Call 07/15/42) | 145 | 142,495 | ||||||
4.30%, 10/01/48 (Call 04/01/48) | 125 | 127,654 | ||||||
5.50%, 06/15/41 (Call 12/15/40) | 5 | 5,827 | ||||||
Brooklyn Union Gas Co. (The) | ||||||||
4.27%, 03/15/48 (Call 09/15/47)(a) | 800 | 782,087 | ||||||
4.49%, 03/04/49 (Call 09/04/48)(a) | 150 | 149,670 | ||||||
CenterPoint Energy Resources Corp. | ||||||||
4.10%, 09/01/47 (Call 03/01/47) | 90 | 84,554 | ||||||
5.85%, 01/15/41 (Call 07/15/40) | 235 | 270,386 | ||||||
Dominion Energy Gas Holdings LLC | ||||||||
4.60%, 12/15/44 (Call 06/15/44) | 260 | 263,039 | ||||||
4.80%, 11/01/43 (Call 05/01/43) | 115 | 119,957 | ||||||
Korea Gas Corp., 6.25%, 01/20/42(a)(b) | 300 | 394,711 | ||||||
NiSource Inc. | ||||||||
3.95%, 03/30/48 (Call 12/30/47) | 145 | 131,074 | ||||||
4.38%, 05/15/47 (Call 11/15/46) | 50 | 48,376 | ||||||
4.80%, 02/15/44 (Call 08/15/43) | 175 | 176,748 | ||||||
5.25%, 02/15/43 (Call 08/15/42) | 375 | 396,925 | ||||||
5.65%, 02/01/45 (Call 08/01/44) | 411 | 457,457 | ||||||
5.95%, 06/15/41 (Call 12/15/40) | 200 | 225,869 | ||||||
ONE Gas Inc. | ||||||||
4.50%, 11/01/48 (Call 05/01/48)(b) | 50 | 52,721 | ||||||
4.66%, 02/01/44 (Call 08/01/43) | 275 | 292,194 |
Security | Par (000) | Value | ||||||
Gas (continued) | ||||||||
Piedmont Natural Gas Co. Inc. | ||||||||
3.64%, 11/01/46 (Call 05/01/46) | $ | 20 | $ | 17,552 | ||||
4.65%, 08/01/43 (Call 02/01/43) | 153 | 159,541 | ||||||
Southern California Gas Co. | ||||||||
3.75%, 09/15/42 (Call 03/15/42) | 5 | 4,624 | ||||||
Series UU, 4.13%, 06/01/48 (Call 12/01/47) | 175 | 172,497 | ||||||
Southern Co. Gas Capital Corp. | ||||||||
3.95%, 10/01/46 (Call 04/01/46) | 250 | 222,861 | ||||||
4.40%, 06/01/43 (Call 12/01/42) | 71 | 68,301 | ||||||
4.40%, 05/30/47 (Call 11/30/46) | 90 | 86,829 | ||||||
5.88%, 03/15/41 (Call 09/15/40) | 325 | 370,244 | ||||||
Southwest Gas Corp., 3.80%, 09/29/46 (Call 03/29/46) | 110 | 99,359 | ||||||
|
| |||||||
5,864,247 | ||||||||
Hand & Machine Tools — 0.1% | ||||||||
Snap-on Inc., 4.10%, 03/01/48 (Call 09/01/47) | 195 | 194,274 | ||||||
Stanley Black & Decker Inc. | ||||||||
4.85%, 11/15/48 (Call 05/15/48) | 100 | 104,329 | ||||||
5.20%, 09/01/40 | 200 | 213,987 | ||||||
|
| |||||||
512,590 | ||||||||
Health Care – Products— 1.7% | ||||||||
Abbott Laboratories | ||||||||
4.75%, 11/30/36 (Call 05/30/36) | 730 | 785,373 | ||||||
4.75%, 04/15/43 (Call 10/15/42)(b) | 230 | 241,487 | ||||||
4.90%, 11/30/46 (Call 05/30/46)(b) | 900 | 983,832 | ||||||
5.30%, 05/27/40 | 250 | 278,227 | ||||||
6.00%, 04/01/39 | 200 | 235,071 | ||||||
Baxter International Inc., 3.50%, 08/15/46 (Call 02/15/46) | 350 | 289,264 | ||||||
Becton Dickinson and Co. | ||||||||
4.67%, 06/06/47 (Call 12/06/46) | 450 | 445,696 | ||||||
4.69%, 12/15/44 (Call 06/15/44) | 535 | 523,790 | ||||||
5.00%, 11/12/40 | 165 | 163,071 | ||||||
Boston Scientific Corp. | ||||||||
4.55%, 03/01/39 (Call 09/01/38) | 95 | 94,298 | ||||||
4.70%, 03/01/49 (Call 09/01/48) | 350 | 349,432 | ||||||
7.00%, 11/15/35 | 130 | 160,693 | ||||||
7.38%, 01/15/40 | 150 | 191,636 | ||||||
Covidien International Finance SA, 6.55%, 10/15/37 | 110 | 143,478 | ||||||
Danaher Corp., 4.38%, 09/15/45 (Call 03/15/45)(b) | 175 | 172,871 | ||||||
Koninklijke Philips NV, 5.00%, 03/15/42 | 300 | 322,246 | ||||||
Medtronic Inc. | 850 | 895,839 | ||||||
4.50%, 03/15/42 (Call 09/15/41) | 86 | 92,606 | ||||||
4.63%, 03/15/44 (Call 09/15/43) | 150 | 165,051 | ||||||
4.63%, 03/15/45 | 1,380 | 1,511,771 | ||||||
5.55%, 03/15/40 | 200 | 241,225 | ||||||
6.50%, 03/15/39 | 100 | 130,452 | ||||||
Stryker Corp. | ||||||||
4.10%, 04/01/43 (Call 10/01/42) | 405 | 382,016 | ||||||
4.38%, 05/15/44 (Call 12/15/43) | 20 | 19,727 | ||||||
4.63%, 03/15/46 (Call 09/15/45) | 180 | 184,747 | ||||||
Thermo Fisher Scientific Inc. | ||||||||
4.10%, 08/15/47 (Call 02/15/47) | 275 | 260,497 | ||||||
5.30%, 02/01/44 (Call 08/01/43) | 190 | 208,453 | ||||||
Zimmer Biomet Holdings Inc. | ||||||||
4.25%, 08/15/35 (Call 02/15/35) | 200 | 177,797 | ||||||
4.45%, 08/15/45 (Call 07/15/45) | 100 | 90,677 | ||||||
5.75%, 11/30/39 | 200 | 207,280 | ||||||
|
| |||||||
9,948,603 |
SCHEDULE OF INVESTMENTS | 63 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Health Care – Services — 2.7% | ||||||||
Advocate Health & Hospitals Corp., 4.27%, 08/15/48 (Call 02/15/48) | $ | 50 | $ | 51,024 | ||||
Aetna Inc. | ||||||||
3.88%, 08/15/47 (Call 02/15/47) | 250 | 206,489 | ||||||
4.13%, 11/15/42 (Call 05/15/42) | 235 | 204,609 | ||||||
4.50%, 05/15/42 (Call 11/15/41) | 175 | 160,997 | ||||||
4.75%, 03/15/44 (Call 09/15/43) | 160 | 151,605 | ||||||
6.63%, 06/15/36 | 165 | 192,784 | ||||||
6.75%, 12/15/37 | 260 | 310,034 | ||||||
Anthem Inc. | ||||||||
4.38%, 12/01/47 (Call 06/01/47) | 435 | 414,985 | ||||||
4.55%, 03/01/48 (Call 09/01/47)(b) | 510 | 501,987 | ||||||
4.63%, 05/15/42 | 400 | 398,899 | ||||||
4.65%, 01/15/43 | 470 | 469,017 | ||||||
4.65%, 08/15/44 (Call 02/15/44) | 300 | 299,130 | ||||||
5.10%, 01/15/44 | 75 | 79,420 | ||||||
Ascension Health | ||||||||
3.95%, 11/15/46 | 608 | 595,375 | ||||||
4.85%, 11/15/53 | 11 | 12,299 | ||||||
Baylor Scott & White Holdings | ||||||||
3.97%, 11/15/46 (Call 05/15/46) | 350 | 332,970 | ||||||
4.19%, 11/15/45 (Call 05/15/45) | 166 | 163,566 | ||||||
Cigna Holding Co., 3.88%, 10/15/47 (Call 04/15/47) | 535 | 454,053 | ||||||
CommonSpirit Health, 4.35%, 11/01/42 | 325 | 293,921 | ||||||
Dartmouth-Hitchcock Health, Series B, 4.18%, 08/01/48 (Call 02/01/48) | 200 | 194,438 | ||||||
Dignity Health | ||||||||
4.50%, 11/01/42 | 100 | 93,377 | ||||||
5.27%, 11/01/64 | 100 | 99,880 | ||||||
Hackensack Meridian Health Inc., 4.21%, 07/01/48 (Call 01/01/48) | 50 | 49,452 | ||||||
HCA Inc., 5.50%, 06/15/47 (Call 12/15/46) | 500 | 519,440 | ||||||
Humana Inc. | ||||||||
4.63%, 12/01/42 (Call 06/01/42) | 235 | 233,153 | ||||||
4.80%, 03/15/47 (Call 09/14/46) | 215 | 219,116 | ||||||
4.95%, 10/01/44 (Call 04/01/44) | 195 | 200,394 | ||||||
Johns Hopkins Health System Corp. (The), 3.84%, 05/15/46 | 60 | 57,506 | ||||||
Kaiser Foundation Hospitals | ||||||||
4.15%, 05/01/47 (Call 11/01/46) | 775 | 782,220 | ||||||
4.88%, 04/01/42 | 100 | 111,744 | ||||||
Laboratory Corp. of America Holdings, 4.70%, 02/01/45 (Call 08/01/44) | 325 | 304,988 | ||||||
Mayo Clinic, Series 2013, 4.00%, 11/15/47 | 11 | 10,839 | ||||||
Memorial Sloan-Kettering Cancer Center | ||||||||
4.13%, 07/01/52 | 275 | 273,301 | ||||||
Series 2015, 4.20%, 07/01/55(b) | 225 | 226,099 | ||||||
Montefiore Medical Center, Series18-C, 5.25%, 11/01/48 | 115 | 115,247 | ||||||
Mount Sinai Hospitals Group Inc., Series 2017, 3.98%, 07/01/48 | 150 | 140,161 | ||||||
New York and Presbyterian Hospital (The) | ||||||||
4.02%, 08/01/45 | 21 | 20,768 | ||||||
4.06%, 08/01/56 | 350 | 342,667 | ||||||
Northwell Healthcare Inc., 3.98%, 11/01/46 (Call 11/01/45) | 425 | 389,837 | ||||||
Providence St Joseph Health Obligated Group, Series I, | ||||||||
3.74%, 10/01/47 | 250 | 229,995 | ||||||
Quest Diagnostics Inc., 4.70%, 03/30/45 (Call 09/30/44) | 197 | 184,608 | ||||||
Southern Baptist Hospital of Florida Inc., 4.86%, 07/15/45 (Call 01/15/45) | 25 | 26,719 | ||||||
Stanford Health Care, Series 2018, 3.80%, 11/15/48 (Call 05/15/48) | 250 | 239,606 |
Security | Par (000) | Value | ||||||
Health Care – Services (continued) | ||||||||
Sutter Health, Series 2018, 4.09%, 08/15/48 (Call 02/15/48) | $ | 35 | $ | 34,027 | ||||
Texas Health Resources, 4.33%, 11/15/55 | 9 | 9,120 | ||||||
Toledo Hospital (The), 6.02%, 11/15/48 | 500 | 529,016 | ||||||
UnitedHealth Group Inc. | ||||||||
3.75%, 10/15/47 (Call 04/15/47) | 200 | 187,853 | ||||||
3.95%, 10/15/42 (Call 04/15/42) | 152 | 148,363 | ||||||
4.20%, 01/15/47 (Call 07/15/46) | 250 | 250,782 | ||||||
4.25%, 03/15/43 (Call 09/15/42) | 425 | 432,597 | ||||||
4.25%, 04/15/47 (Call 10/15/46) | 275 | 278,117 | ||||||
4.25%, 06/15/48 (Call 12/15/47) | 425 | 429,630 | ||||||
4.38%, 03/15/42 (Call 09/15/41) | 250 | 257,843 | ||||||
4.63%, 07/15/35 | 250 | 271,736 | ||||||
4.63%, 11/15/41 (Call 05/15/41) | 100 | 106,161 | ||||||
4.75%, 07/15/45 | 850 | 924,208 | ||||||
5.70%, 10/15/40 (Call 04/15/40) | 100 | 119,904 | ||||||
5.80%, 03/15/36 | 250 | 301,422 | ||||||
5.95%, 02/15/41 (Call 08/15/40) | 200 | 247,191 | ||||||
6.50%, 06/15/37 | 100 | 127,381 | ||||||
6.63%, 11/15/37 | 111 | 143,601 | ||||||
6.88%, 02/15/38 | 350 | 467,136 | ||||||
|
| |||||||
15,624,807 | ||||||||
Home Furnishings — 0.0% | ||||||||
Whirlpool Corp., 4.50%, 06/01/46 (Call 12/01/45) | 315 | 260,722 | ||||||
|
| |||||||
Household Products & Wares — 0.2% | ||||||||
Kimberly-Clark Corp. | ||||||||
3.20%, 07/30/46 (Call 01/30/46) | 240 | 208,001 | ||||||
3.90%, 05/04/47 (Call 11/04/46) | 310 | 305,879 | ||||||
5.30%, 03/01/41 | 31 | 36,057 | ||||||
6.63%, 08/01/37 | 295 | 388,896 | ||||||
|
| |||||||
938,833 | ||||||||
Housewares — 0.1% | ||||||||
Newell Brands Inc. | ||||||||
5.38%, 04/01/36 (Call 10/01/35) | 289 | 256,280 | ||||||
5.50%, 04/01/46 (Call 10/01/45) | 100 | 86,866 | ||||||
|
| |||||||
343,146 | ||||||||
Insurance — 5.4% | ||||||||
ACE Capital Trust II, Series N, 9.70%, 04/01/30 | 100 | 135,000 | ||||||
Aflac Inc. | ||||||||
4.00%, 10/15/46 (Call 04/15/46) | 285 | 270,992 | ||||||
4.75%, 01/15/49 (Call 07/15/48) | 185 | 195,387 | ||||||
6.45%, 08/15/40 | 65 | 81,104 | ||||||
Alleghany Corp., 4.90%, 09/15/44 (Call 03/15/44) | 125 | 121,792 | ||||||
Allstate Corp. (The) | ||||||||
4.20%, 12/15/46 (Call 06/15/46) | 80 | 79,608 | ||||||
4.50%, 06/15/43 | 345 | 358,898 | ||||||
5.35%, 06/01/33 | 118 | 135,262 | ||||||
5.55%, 05/09/35 | 376 | 430,820 | ||||||
5.95%, 04/01/36 | 50 | 59,767 | ||||||
6.50%, 05/15/67 (Call 05/15/37)(b)(c)(d) | 85 | 90,950 | ||||||
American Financial Group Inc./OH, 4.50%, 06/15/47 (Call 12/15/46) | 330 | 297,765 | ||||||
American International Group Inc. | 490 | 435,559 | ||||||
4.38%, 01/15/55 (Call 07/15/54) | 325 | 274,724 | ||||||
4.50%, 07/16/44 (Call 01/16/44) | 415 | 380,080 | ||||||
4.70%, 07/10/35 (Call 01/10/35) | 200 | 193,614 | ||||||
4.75%, 04/01/48 (Call 10/01/47) | 385 | 363,537 | ||||||
4.80%, 07/10/45 (Call 01/10/45) | 440 | 423,166 |
64 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
6.25%, 05/01/36 | $ | 300 | $ | 336,370 | ||||
8.18%, 05/15/68 (Call 05/15/38)(c)(d) | 50 | 58,000 | ||||||
Aon PLC | 225 | 222,587 | ||||||
4.75%, 05/15/45 (Call 11/15/44) | 311 | 315,414 | ||||||
Arch Capital Finance LLC, 5.03%, 12/15/46 (Call 06/15/46) | 220 | 231,840 | ||||||
Arch Capital Group Ltd., 7.35%, 05/01/34 | 45 | 58,626 | ||||||
Arch Capital Group U.S. Inc., 5.14%, 11/01/43 | 220 | 233,493 | ||||||
Assurant Inc., 6.75%, 02/15/34 | 170 | 188,311 | ||||||
AXA Equitable Holdings Inc., 5.00%, 04/20/48 (Call 10/20/47) | 550 | 514,114 | ||||||
AXA SA, 8.60%, 12/15/30 | 740 | 965,522 | ||||||
AXIS Specialty Finance PLC, 5.15%, 04/01/45 | 75 | 72,435 | ||||||
Berkshire Hathaway Finance Corp. | ||||||||
4.20%, 08/15/48 (Call 02/15/48) | 325 | 326,724 | ||||||
4.25%, 01/15/49 (Call 07/15/48) | 250 | 253,223 | ||||||
4.30%, 05/15/43 | 168 | 171,623 | ||||||
4.40%, 05/15/42 | 385 | 399,160 | ||||||
5.75%, 01/15/40 | 300 | 362,652 | ||||||
Berkshire Hathaway Inc., 4.50%, 02/11/43(b) | 295 | 312,074 | ||||||
Brighthouse Financial Inc., 4.70%, 06/22/47 (Call 12/22/46) | 550 | 435,204 | ||||||
Chubb Corp. (The), 6.00%, 05/11/37(b) | 210 | 259,620 | ||||||
Chubb INA Holdings Inc. | 250 | 254,675 | ||||||
4.35%, 11/03/45 (Call 05/03/45)(b) | 600 | 628,231 | ||||||
Everest Reinsurance Holdings Inc., 4.87%, 06/01/44 | 200 | 195,370 | ||||||
Farmers Exchange Capital III, 5.45%, 10/15/54 (Call 10/15/34)(a)(c)(d) | 60 | 57,615 | ||||||
Farmers Insurance Exchange, 4.75%, 11/01/57 (Call 11/01/37)(a)(b)(c)(d) | 300 | 259,584 | ||||||
Guardian Life Insurance Co. of America (The) | ||||||||
4.85%, 01/24/77(a) | 200 | 200,808 | ||||||
4.88%, 06/19/64(a) | 165 | 167,560 | ||||||
Hartford Financial Services Group Inc. (The) | ||||||||
4.30%, 04/15/43 | 14 | 13,452 | ||||||
4.40%, 03/15/48 (Call 09/15/47) | 100 | 97,014 | ||||||
5.95%, 10/15/36 | 200 | 228,884 | ||||||
6.10%, 10/01/41 | 225 | 263,301 | ||||||
6.63%, 03/30/40 | 135 | 163,962 | ||||||
Liberty Mutual Group Inc., 4.85%, 08/01/44(a) | 650 | 638,376 | ||||||
Liberty Mutual Insurance Co., 7.70%, 10/15/97(a) | 70 | 89,890 | ||||||
Lincoln National Corp. | 300 | 282,746 | ||||||
6.15%, 04/07/36 | 195 | 227,869 | ||||||
6.30%, 10/09/37 | 41 | 48,894 | ||||||
7.00%, 06/15/40 | 125 | 160,316 | ||||||
Loews Corp. | ||||||||
4.13%, 05/15/43 (Call 11/15/42) | 240 | 226,759 | ||||||
6.00%, 02/01/35 | 150 | 170,752 | ||||||
Manulife Financial Corp., 5.38%, 03/04/46 | 400 | 445,721 | ||||||
Markel Corp. | ||||||||
4.30%, 11/01/47 (Call 05/01/47) | 100 | 88,233 | ||||||
5.00%, 04/05/46 | 150 | 148,221 | ||||||
Marsh & McLennan Companies Inc. | ||||||||
4.20%, 03/01/48 (Call 09/01/47) | 200 | 190,473 | ||||||
4.35%, 01/30/47 (Call 07/30/46) | 242 | 236,930 | ||||||
4.90%, 03/15/49 (Call 09/15/48) | 565 | 592,370 | ||||||
5.88%, 08/01/33 | 25 | 29,350 | ||||||
Massachusetts Mutual Life Insurance Co. | ||||||||
4.50%, 04/15/65(a) | 400 | 376,237 | ||||||
5.38%, 12/01/41(a) | 25 | 27,606 |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
MetLife Capital Trust IV, 7.88%, 12/15/67 (Call 12/15/32)(a) | $ | 30 | $ | 36,513 | ||||
MetLife Inc. | ||||||||
4.05%, 03/01/45 | 450 | 424,623 | ||||||
4.13%, 08/13/42 | 425 | 409,588 | ||||||
4.60%, 05/13/46 (Call 12/13/45) | 300 | 310,941 | ||||||
4.88%, 11/13/43 | 375 | 399,779 | ||||||
5.70%, 06/15/35 | 460 | 535,758 | ||||||
5.88%, 02/06/41 | 50 | 59,920 | ||||||
6.38%, 06/15/34(b) | 100 | 123,956 | ||||||
6.40%, 12/15/66 (Call 12/15/31) | 445 | 471,700 | ||||||
6.50%, 12/15/32 | 340 | 430,706 | ||||||
10.75%, 08/01/69 (Call 08/01/34) | 66 | 98,340 | ||||||
Series N, 4.72%, 12/15/44 | 225 | 235,706 | ||||||
Mutual of Omaha Insurance Co., 6.80%, 06/15/36(a) | 75 | 92,582 | ||||||
Nationwide Financial Services Inc., 5.30%, 11/18/44(a) | 250 | 262,693 | ||||||
Nationwide Mutual Insurance Co., 9.38%, 08/15/39(a) | 350 | 533,783 | ||||||
New York Life Insurance Co., 5.88%, 05/15/33(a)(b) | 650 | 785,645 | ||||||
Northwestern Mutual Life Insurance Co. (The), | ||||||||
6.06%, 03/30/40(a)(b) | 900 | 1,110,934 | ||||||
Pacific Life Insurance Co., 4.30%, 10/24/67 (Call 10/24/47)(a)(c)(d) | 600 | 534,898 | ||||||
Principal Financial Group Inc. | ||||||||
4.35%, 05/15/43 | 300 | 285,633 | ||||||
4.63%, 09/15/42 | 15 | 14,988 | ||||||
6.05%, 10/15/36 | 191 | 222,136 | ||||||
Progressive Corp. (The) | ||||||||
3.70%, 01/26/45 | 150 | 139,601 | ||||||
4.13%, 04/15/47 (Call 10/15/46) | 100 | 99,957 | ||||||
4.20%, 03/15/48 (Call 09/15/47) | 385 | 390,723 | ||||||
4.35%, 04/25/44 | 136 | 138,921 | ||||||
6.25%, 12/01/32 | 200 | 248,057 | ||||||
Prudential Financial Inc. | ||||||||
3.91%, 12/07/47 (Call 06/07/47) | 225 | 207,603 | ||||||
3.94%, 12/07/49 (Call 06/07/49) | 260 | 242,298 | ||||||
4.35%, 02/25/50 (Call 08/25/49) | 250 | 247,209 | ||||||
4.42%, 03/27/48 (Call 09/27/47) | 250 | 252,619 | ||||||
4.60%, 05/15/44 | 310 | 321,859 | ||||||
5.70%, 12/14/36 | 350 | 403,914 | ||||||
6.63%, 06/21/40 | 5 | 6,311 | ||||||
Sompo International Holdings Ltd., 7.00%, 07/15/34(b) | 175 | 208,041 | ||||||
Teachers Insurance & Annuity Association of America | ||||||||
4.27%, 05/15/47 (Call 11/15/46)(a)(b) | 1,250 | 1,225,216 | ||||||
4.90%, 09/15/44(a)(b) | 75 | 80,018 | ||||||
Transatlantic Holdings Inc., 8.00%, 11/30/39 | 150 | 199,412 | ||||||
Travelers Companies Inc. (The) | ||||||||
3.75%, 05/15/46 (Call 11/15/45) | 250 | 235,203 | ||||||
4.00%, 05/30/47 (Call 11/30/46) | 185 | 180,168 | ||||||
4.05%, 03/07/48 (Call 09/07/47) | 175 | 172,203 | ||||||
4.10%, 03/04/49 (Call 09/04/48) | 60 | 59,578 | ||||||
4.30%, 08/25/45 (Call 02/25/45) | 185 | 188,798 | ||||||
4.60%, 08/01/43 | 91 | 96,817 | ||||||
5.35%, 11/01/40 | 235 | 274,149 | ||||||
6.25%, 06/15/37(b) | 145 | 183,031 | ||||||
6.75%, 06/20/36 | 200 | 261,983 | ||||||
Travelers Property Casualty Corp., 6.38%, 03/15/33 | 250 | 315,845 | ||||||
Unum Group, 5.75%, 08/15/42 | 210 | 218,854 | ||||||
Voya Financial Inc. | ||||||||
4.80%, 06/15/46 | 100 | 99,070 | ||||||
5.70%, 07/15/43 | 235 | 258,695 |
SCHEDULE OF INVESTMENTS | 65 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Insurance (continued) | ||||||||
Western & Southern Life Insurance Co. (The), 5.15%, 01/15/49 (Call 07/15/48)(a) | $ | 150 | $ | 156,070 | ||||
Willis North America Inc., 5.05%, 09/15/48 (Call 03/15/48) | 35 | 34,571 | ||||||
WR Berkley Corp., 4.75%, 08/01/44 | 200 | 197,959 | ||||||
XLIT Ltd., 5.50%, 03/31/45 | 276 | 293,499 | ||||||
|
| |||||||
31,575,290 | ||||||||
Internet — 0.9% | ||||||||
Alibaba Group Holding Ltd. | ||||||||
4.00%, 12/06/37 (Call 06/06/37) | 300 | 282,031 | ||||||
4.20%, 12/06/47 (Call 06/06/47) | 600 | 566,121 | ||||||
4.50%, 11/28/34 (Call 05/28/34) | 435 | 441,932 | ||||||
Amazon.com Inc. | ||||||||
3.88%, 08/22/37 (Call 02/22/37)(b) | 320 | 318,934 | ||||||
4.05%, 08/22/47 (Call 02/22/47) | 1,150 | 1,151,986 | ||||||
4.25%, 08/22/57 (Call 02/22/57) | 700 | 709,434 | ||||||
4.80%, 12/05/34 (Call 06/05/34) | 860 | 958,917 | ||||||
4.95%, 12/05/44 (Call 06/05/44) | 360 | 409,013 | ||||||
eBay Inc., 4.00%, 07/15/42 (Call 01/15/42) | 370 | 296,395 | ||||||
|
| |||||||
5,134,763 | ||||||||
Iron & Steel — 0.4% | ||||||||
ArcelorMittal | ||||||||
6.75%, 03/01/41 | 10 | 10,638 | ||||||
7.00%, 10/15/39 | 250 | 274,291 | ||||||
Nucor Corp. | ||||||||
5.20%, 08/01/43 (Call 02/01/43) | 199 | 216,081 | ||||||
6.40%, 12/01/37 | 200 | 243,143 | ||||||
Vale Overseas Ltd. | ||||||||
6.88%, 11/21/36 | 550 | 596,996 | ||||||
6.88%, 11/10/39 | 435 | 476,869 | ||||||
8.25%, 01/17/34 | 420 | 510,300 | ||||||
Vale SA, 5.63%, 09/11/42 | 30 | 29,130 | ||||||
|
| |||||||
2,357,448 | ||||||||
Leisure Time — 0.0% | ||||||||
Harley-Davidson Inc., 4.63%, 07/28/45 (Call 01/28/45) | 150 | 136,579 | ||||||
|
| |||||||
Machinery — 0.5% | ||||||||
ABB Finance USA Inc., 4.38%, 05/08/42 | 357 | 368,305 | ||||||
Caterpillar Inc. | ||||||||
3.80%, 08/15/42(b) | 550 | 528,126 | ||||||
4.30%, 05/15/44 (Call 11/15/43) | 100 | 102,153 | ||||||
4.75%, 05/15/64 (Call 11/15/63) | 225 | 236,254 | ||||||
5.20%, 05/27/41 | 335 | 381,592 | ||||||
5.30%, 09/15/35 | 11 | 12,248 | ||||||
6.05%, 08/15/36 | 111 | 136,071 | ||||||
Cummins Inc., 4.88%, 10/01/43 (Call 04/01/43) | 175 | 193,392 | ||||||
Deere & Co. | ||||||||
3.90%, 06/09/42 (Call 12/09/41)(b) | 245 | 244,099 | ||||||
5.38%, 10/16/29(b) | 200 | 232,290 | ||||||
7.13%, 03/03/31 | 101 | 132,175 | ||||||
Dover Corp., 5.38%, 03/01/41 (Call 12/01/40) | 250 | 267,964 | ||||||
Rockwell Automation Inc., 4.20%, 03/01/49 (Call 09/01/48) | 120 | 120,521 | ||||||
Xylem Inc./NY, 4.38%, 11/01/46 (Call 05/01/46) | 225 | 217,836 | ||||||
|
| |||||||
3,173,026 | ||||||||
Manufacturing — 1.4% | ||||||||
3M Co. | ||||||||
3.13%, 09/19/46 (Call 03/19/46) | 250 | 215,116 | ||||||
3.63%, 10/15/47 (Call 04/15/47) | 265 | 247,644 | ||||||
3.88%, 06/15/44 | 150 | 148,279 | ||||||
4.00%, 09/14/48 (Call 03/14/48) | 50 | 50,239 |
Security | Par (000) | Value | ||||||
Manufacturing (continued) | ||||||||
5.70%, 03/15/37 | $ | 50 | $ | 60,193 | ||||
Crane Co., 4.20%, 03/15/48 (Call 09/15/47) | 45 | 40,722 | ||||||
Eaton Corp. | ||||||||
4.00%, 11/02/32 | 700 | 697,760 | ||||||
4.15%, 11/02/42 | 275 | 266,272 | ||||||
General Electric Co. | ||||||||
4.13%, 10/09/42 | 475 | 401,496 | ||||||
4.50%, 03/11/44 | 725 | 646,962 | ||||||
5.88%, 01/14/38 | 525 | 551,224 | ||||||
6.15%, 08/07/37 | 405 | 434,729 | ||||||
6.88%, 01/10/39(b) | 515 | 596,202 | ||||||
Series A, 6.75%, 03/15/32 | 1,080 | 1,236,782 | ||||||
Illinois Tool Works Inc. | ||||||||
3.90%, 09/01/42 (Call 03/01/42)(b) | 375 | 376,545 | ||||||
4.88%, 09/15/41 (Call 03/15/41) | 200 | 224,693 | ||||||
Ingersoll-Rand Global Holding Co. Ltd. | ||||||||
4.30%, 02/21/48 (Call 08/21/47) | 100 | 95,198 | ||||||
5.75%, 06/15/43 | 170 | 195,121 | ||||||
Ingersoll-Rand Luxembourg Finance SA, 4.65%, 11/01/44 (Call 05/01/44) | 140 | 140,189 | ||||||
Parker-Hannifin Corp. | ||||||||
4.10%, 03/01/47 (Call 09/01/46) | 110 | 107,494 | ||||||
4.20%, 11/21/34 (Call 05/21/34)(b) | 100 | 101,311 | ||||||
4.45%, 11/21/44 (Call 05/21/44) | 200 | 204,151 | ||||||
Series A, 6.25%, 05/15/38 | 100 | 123,428 | ||||||
Siemens Financieringsmaatschappij NV | ||||||||
3.30%, 09/15/46(a) | 150 | 131,649 | ||||||
4.20%, 03/16/47(a)(b) | 1,000 | 1,010,540 | ||||||
4.40%, 05/27/45(a) | 100 | 104,288 | ||||||
|
| |||||||
8,408,227 | ||||||||
Media — 5.6% | ||||||||
21st Century Fox America Inc. | ||||||||
4.75%, 09/15/44 (Call 03/15/44) | 275 | 296,926 | ||||||
4.95%, 10/15/45 (Call 04/15/45) | 200 | 222,609 | ||||||
5.40%, 10/01/43 | 75 | 87,686 | ||||||
6.15%, 03/01/37 | 475 | 586,395 | ||||||
6.15%, 02/15/41(b) | 500 | 629,679 | ||||||
6.20%, 12/15/34 | 500 | 618,917 | ||||||
6.40%, 12/15/35 | 302 | 382,863 | ||||||
6.55%, 03/15/33 | 275 | 352,480 | ||||||
6.65%, 11/15/37 | 300 | 391,736 | ||||||
6.90%, 08/15/39 | 36 | 48,227 | ||||||
7.75%, 12/01/45 | 150 | 221,023 | ||||||
7.85%, 03/01/39 | 200 | 288,290 | ||||||
8.15%, 10/17/36 | 100 | 144,546 | ||||||
CBS Corp. | ||||||||
4.60%, 01/15/45 (Call 07/15/44)(b) | 145 | 133,821 | ||||||
4.85%, 07/01/42 (Call 01/01/42) | 265 | 252,456 | ||||||
4.90%, 08/15/44 (Call 02/15/44) | 310 | 293,861 | ||||||
5.50%, 05/15/33 | 150 | 158,759 | ||||||
5.90%, 10/15/40 (Call 04/15/40) | 165 | 175,210 | ||||||
7.88%, 07/30/30(b) | 50 | 64,404 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | ||||||||
5.38%, 04/01/38 (Call 10/01/37) | 150 | 144,608 | ||||||
5.38%, 05/01/47 (Call 11/01/46) | 785 | 744,658 | ||||||
5.75%, 04/01/48 (Call 10/01/47) | 730 | 729,844 | ||||||
6.38%, 10/23/35 (Call 04/23/35) | 650 | 695,891 | ||||||
6.48%, 10/23/45 (Call 04/23/45) | 1,065 | 1,145,376 | ||||||
6.83%, 10/23/55 (Call 04/23/55) | 150 | 161,720 |
66 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
Comcast Corp. | ||||||||
3.20%, 07/15/36 (Call 01/15/36) | $ | 375 | $ | 328,061 | ||||
3.40%, 07/15/46 (Call 01/15/46) | 550 | 462,938 | ||||||
3.90%, 03/01/38 (Call 09/01/37) | 225 | 211,494 | ||||||
3.97%, 11/01/47 (Call 05/01/47) | 625 | 579,010 | ||||||
4.00%, 08/15/47 (Call 02/15/47) | 50 | 46,389 | ||||||
4.00%, 03/01/48 (Call 09/01/47) | 50 | 46,741 | ||||||
4.00%, 11/01/49 (Call 05/01/49) | 780 | 725,274 | ||||||
4.05%, 11/01/52 (Call 05/01/52) | 150 | 138,734 | ||||||
4.20%, 08/15/34 (Call 02/15/34) | 480 | 483,110 | ||||||
4.25%, 10/15/30 (Call 07/15/30) | 320 | 331,262 | ||||||
4.25%, 01/15/33(b) | 1,300 | 1,329,869 | ||||||
4.40%, 08/15/35 (Call 02/25/35) | 455 | 456,124 | ||||||
4.50%, 01/15/43(b) | 200 | 201,576 | ||||||
4.60%, 10/15/38 (Call 04/15/38) | 810 | 835,893 | ||||||
4.60%, 08/15/45 (Call 02/15/45) | 670 | 676,366 | ||||||
4.65%, 07/15/42 | 375 | 380,764 | ||||||
4.70%, 10/15/48 (Call 04/15/48) | 1,190 | 1,238,090 | ||||||
4.75%, 03/01/44 | 340 | 352,914 | ||||||
4.95%, 10/15/58 (Call 04/15/58) | 765 | 805,480 | ||||||
5.65%, 06/15/35 | 111 | 125,883 | ||||||
6.40%, 05/15/38 | 62 | 75,939 | ||||||
6.45%, 03/15/37 | 175 | 215,462 | ||||||
6.50%, 11/15/35 | 435 | 532,867 | ||||||
6.55%, 07/01/39 | 25 | 31,207 | ||||||
6.95%, 08/15/37 | 150 | 191,747 | ||||||
7.05%, 03/15/33 | 161 | 209,160 | ||||||
Cox Communications Inc. | ||||||||
4.60%, 08/15/47 (Call 02/15/47)(a) | 75 | 68,104 | ||||||
8.38%, 03/01/39(a) | 650 | 821,216 | ||||||
Discovery Communications LLC | ||||||||
4.88%, 04/01/43 | 265 | 238,858 | ||||||
4.95%, 05/15/42 | 250 | 224,817 | ||||||
5.00%, 09/20/37 (Call 03/20/37) | 260 | 245,802 | ||||||
5.20%, 09/20/47 (Call 03/20/47) | 410 | 385,852 | ||||||
6.35%, 06/01/40 | 300 | 320,333 | ||||||
Fox Corp., 5.58%, 01/25/49 (Call 07/25/48)(a) | 665 | 701,130 | ||||||
Grupo Televisa SAB | ||||||||
5.00%, 05/13/45 (Call 11/13/44) | 525 | 478,635 | ||||||
6.63%, 01/15/40 | 300 | 334,080 | ||||||
Historic TW Inc., 6.63%, 05/15/29 | 100 | 118,453 | ||||||
NBCUniversal Media LLC | ||||||||
4.45%, 01/15/43 | 325 | 322,132 | ||||||
5.95%, 04/01/41(b) | 700 | 823,608 | ||||||
Thomson Reuters Corp. | ||||||||
5.50%, 08/15/35 | 150 | 153,028 | ||||||
5.65%, 11/23/43 (Call 05/23/43) | 125 | 133,268 | ||||||
5.85%, 04/15/40(b) | 250 | 270,205 | ||||||
Time Warner Cable LLC | ||||||||
4.50%, 09/15/42 (Call 03/15/42) | 300 | 251,969 | ||||||
5.50%, 09/01/41 (Call 03/01/41) | 400 | 378,414 | ||||||
5.88%, 11/15/40 (Call 05/15/40) | 500 | 493,588 | ||||||
6.55%, 05/01/37 | 450 | 477,140 | ||||||
6.75%, 06/15/39 | 465 | 499,087 | ||||||
7.30%, 07/01/38 | 550 | 615,499 | ||||||
Time Warner Entertainment Co. LP, 8.38%, 07/15/33 | 151 | 191,260 | ||||||
Viacom Inc. | ||||||||
4.38%, 03/15/43 | 435 | 373,408 | ||||||
5.25%, 04/01/44 (Call 10/01/43) | 250 | 241,584 |
Security | Par (000) | Value | ||||||
Media (continued) | ||||||||
5.85%, 09/01/43 (Call 03/01/43) | $ | 225 | $ | 234,703 | ||||
6.88%, 04/30/36 | 350 | 395,411 | ||||||
Walt Disney Co. (The) | ||||||||
3.00%, 07/30/46 | 25 | 20,979 | ||||||
3.70%, 12/01/42 | 300 | 284,488 | ||||||
4.13%, 06/01/44(b) | 285 | 288,886 | ||||||
4.38%, 08/16/41 | 275 | 285,184 | ||||||
7.00%, 03/01/32 | 200 | 269,981 | ||||||
Series E, 4.13%, 12/01/41 | 200 | 201,593 | ||||||
Warner Media LLC | ||||||||
4.65%, 06/01/44 (Call 12/01/43) | 235 | 214,454 | ||||||
4.85%, 07/15/45 (Call 01/15/45) | 175 | 165,046 | ||||||
4.90%, 06/15/42(b) | 300 | 284,786 | ||||||
5.35%, 12/15/43 | 225 | 224,049 | ||||||
5.38%, 10/15/41 | 250 | 252,697 | ||||||
6.10%, 07/15/40 | 100 | 109,199 | ||||||
6.25%, 03/29/41(b) | 200 | 220,648 | ||||||
7.70%, 05/01/32 | 225 | 294,147 | ||||||
|
| |||||||
32,892,060 | ||||||||
Metal Fabricate & Hardware — 0.1% | ||||||||
Precision Castparts Corp. | ||||||||
3.90%, 01/15/43 (Call 07/15/42)(b) | 166 | 158,765 | ||||||
4.38%, 06/15/45 (Call 12/15/44) | 86 | 89,218 | ||||||
Valmont Industries Inc. | ||||||||
5.00%, 10/01/44 (Call 04/01/44) | 60 | 55,245 | ||||||
5.25%, 10/01/54 (Call 04/01/54) | 50 | 44,560 | ||||||
|
| |||||||
347,788 | ||||||||
Mining — 1.6% | ||||||||
Barrick Gold Corp., 5.25%, 04/01/42 | 245 | 256,062 | ||||||
Barrick North America Finance LLC | ||||||||
5.70%, 05/30/41 | 275 | 301,183 | ||||||
5.75%, 05/01/43 | 300 | 332,357 | ||||||
7.50%, 09/15/38 | 35 | 43,575 | ||||||
Barrick PD Australia Finance Pty Ltd., 5.95%, 10/15/39 | 340 | 381,814 | ||||||
BHP Billiton Finance USA Ltd. | ||||||||
4.13%, 02/24/42(b) | 440 | 445,187 | ||||||
5.00%, 09/30/43 | 470 | 536,740 | ||||||
Corp. Nacional del Cobre de Chile | ||||||||
4.25%, 07/17/42(a) | 600 | 577,125 | ||||||
4.50%, 08/01/47 (Call 02/01/47)(a) | 800 | 800,348 | ||||||
Glencore Finance Canada Ltd., 5.55%, 10/25/42(a) | 200 | 192,900 | ||||||
Goldcorp Inc., 5.45%, 06/09/44 (Call 12/09/43) | 251 | 261,758 | ||||||
Indonesia Asahan Aluminium Persero PT, 6.76%, 11/15/48(a) | 200 | 217,101 | ||||||
Newmont Mining Corp. | ||||||||
4.88%, 03/15/42 (Call 09/15/41) | 150 | 149,680 | ||||||
5.88%, 04/01/35 | 125 | 138,875 | ||||||
6.25%, 10/01/39 | 450 | 516,671 | ||||||
Rio Tinto Alcan Inc. | ||||||||
5.75%, 06/01/35 | 111 | 128,451 | ||||||
6.13%, 12/15/33 | 161 | 197,080 | ||||||
7.25%, 03/15/31 | 275 | 355,064 | ||||||
Rio Tinto Finance USA Ltd., 5.20%, 11/02/40 | 385 | 441,956 | ||||||
Rio Tinto Finance USA PLC | ||||||||
4.13%, 08/21/42 (Call 02/21/42) | 263 | 264,408 | ||||||
4.75%, 03/22/42 (Call 09/22/41) | 230 | 251,251 | ||||||
Southern Copper Corp. | ||||||||
5.25%, 11/08/42 | 360 | 357,840 | ||||||
5.88%, 04/23/45 | 375 | 402,701 |
SCHEDULE OF INVESTMENTS | 67 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Mining (continued) | ||||||||
6.75%, 04/16/40 | $ | 450 | $ | 521,437 | ||||
7.50%, 07/27/35 | 335 | 410,878 | ||||||
Teck Resources Ltd. | ||||||||
6.00%, 08/15/40 (Call 02/15/40) | 250 | 255,575 | ||||||
6.25%, 07/15/41 (Call 01/15/41) | 500 | 521,750 | ||||||
Vale Canada Ltd., 7.20%, 09/15/32 | 100 | 104,500 | ||||||
|
| |||||||
9,364,267 | ||||||||
Oil & Gas — 7.8% | ||||||||
Anadarko Finance Co., Series B, 7.50%, 05/01/31 | 340 | 413,638 | ||||||
Anadarko Petroleum Corp. | ||||||||
4.50%, 07/15/44 (Call 01/15/44) | 355 | 321,131 | ||||||
6.20%, 03/15/40 | 285 | 312,854 | ||||||
6.45%, 09/15/36 | 345 | 388,234 | ||||||
6.60%, 03/15/46 (Call 09/15/45) | 485 | 575,487 | ||||||
Apache Corp. | ||||||||
4.25%, 01/15/44 (Call 07/15/43) | 390 | 333,736 | ||||||
4.75%, 04/15/43 (Call 10/15/42) | 360 | 327,282 | ||||||
5.10%, 09/01/40 (Call 03/01/40) | 365 | 348,296 | ||||||
5.25%, 02/01/42 (Call 08/01/41) | 135 | 130,449 | ||||||
6.00%, 01/15/37 | 322 | 333,796 | ||||||
7.75%, 12/15/29 | 165 | 195,056 | ||||||
BP Capital Markets PLC, 3.72%, 11/28/28 (Call 08/28/28)(b) | 250 | 254,488 | ||||||
Canadian Natural Resources Ltd. | ||||||||
4.95%, 06/01/47 (Call 12/01/46) | 425 | 442,463 | ||||||
5.85%, 02/01/35 | 150 | 163,930 | ||||||
6.25%, 03/15/38 | 190 | 217,946 | ||||||
6.45%, 06/30/33 | 200 | 232,036 | ||||||
6.50%, 02/15/37 | 50 | 57,604 | ||||||
6.75%, 02/01/39 | 25 | 29,930 | ||||||
7.20%, 01/15/32 | 200 | 243,443 | ||||||
Cenovus Energy Inc. | ||||||||
4.45%, 09/15/42 (Call 03/15/42) | 75 | 62,569 | ||||||
5.25%, 06/15/37 (Call 12/15/36) | 325 | 302,549 | ||||||
5.40%, 06/15/47 (Call 12/15/46) | 510 | 478,707 | ||||||
6.75%, 11/15/39 | 425 | 448,795 | ||||||
CNOOC Finance 2013 Ltd., 4.25%, 05/09/43 | 400 | 390,010 | ||||||
CNOOC Nexen Finance 2014 ULC, 4.88%, 04/30/44 | 400 | 433,022 | ||||||
Concho Resources Inc., 4.88%, 10/01/47 (Call 04/01/47)(b) | 535 | 537,205 | ||||||
Conoco Funding Co., 7.25%, 10/15/31 | 250 | 328,674 | ||||||
ConocoPhillips | ||||||||
5.90%, 10/15/32 | 263 | 316,053 | ||||||
5.90%, 05/15/38 | 210 | 254,861 | ||||||
6.50%, 02/01/39 | 725 | 948,119 | ||||||
ConocoPhillips Canada Funding Co. I | ||||||||
5.95%, 10/15/36 | 100 | 120,565 | ||||||
7.20%, 08/15/31 | 300 | 392,610 | ||||||
7.40%, 12/01/31 | 295 | 393,191 | ||||||
ConocoPhillips Co. | ||||||||
4.30%, 11/15/44 (Call 05/15/44) | 200 | 205,419 | ||||||
5.95%, 03/15/46 (Call 09/15/45) | 175 | 221,858 | ||||||
ConocoPhillips Holding Co., 6.95%, 04/15/29 | 600 | 762,172 | ||||||
Devon Energy Corp. | ||||||||
4.75%, 05/15/42 (Call 11/15/41) | 278 | 271,020 | ||||||
5.00%, 06/15/45 (Call 12/15/44) | 250 | 254,794 | ||||||
5.60%, 07/15/41 (Call 01/15/41) | 435 | 470,703 | ||||||
Ecopetrol SA | ||||||||
5.88%, 05/28/45 | 450 | 453,735 | ||||||
7.38%, 09/18/43 | 375 | 438,750 | ||||||
Empresa Nacional del Petroleo, 4.50%, 09/14/47 (Call 03/14/47)(a) | 400 | 366,600 |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
Encana Corp. | ||||||||
6.50%, 08/15/34 | $ | 250 | $ | 285,569 | ||||
6.50%, 02/01/38 | 350 | 388,750 | ||||||
6.63%, 08/15/37 | 80 | 91,014 | ||||||
7.20%, 11/01/31 | 100 | 116,516 | ||||||
8.13%, 09/15/30 | 50 | 61,470 | ||||||
EOG Resources Inc. | ||||||||
3.90%, 04/01/35 (Call 10/01/34) | 300 | 292,965 | ||||||
5.10%, 01/15/36 (Call 07/15/35) | 125 | 134,820 | ||||||
Equinor ASA | ||||||||
3.95%, 05/15/43 | 225 | 221,849 | ||||||
4.25%, 11/23/41 | 275 | 281,084 | ||||||
4.80%, 11/08/43 | 275 | 304,273 | ||||||
5.10%, 08/17/40 | 150 | 170,426 | ||||||
Exxon Mobil Corp. | ||||||||
3.57%, 03/06/45 (Call 09/06/44) | 250 | 239,108 | ||||||
4.11%, 03/01/46 (Call 09/01/45)(b) | 925 | 962,975 | ||||||
Gazprom OAO Via Gaz Capital SA, 7.29%, 08/16/37(a) | 800 | 918,000 | ||||||
Hess Corp. | ||||||||
5.60%, 02/15/41 | 475 | 461,219 | ||||||
5.80%, 04/01/47 (Call 10/01/46) | 50 | 49,849 | ||||||
6.00%, 01/15/40 | 250 | 250,993 | ||||||
7.13%, 03/15/33 | 225 | 253,526 | ||||||
7.30%, 08/15/31 | 420 | 478,820 | ||||||
KazMunayGas National Co. JSC, 6.38%, 10/24/48(a) | 600 | 648,600 | ||||||
Kerr-McGee Corp., 7.88%, 09/15/31 | 14 | 17,318 | ||||||
Marathon Oil Corp. | ||||||||
5.20%, 06/01/45 (Call 12/01/44) | 250 | 257,192 | ||||||
6.60%, 10/01/37 | 150 | 173,035 | ||||||
6.80%, 03/15/32 | 166 | 189,695 | ||||||
Marathon Petroleum Corp. | ||||||||
4.50%, 04/01/48 (Call 10/01/47)(a) | 200 | 183,165 | ||||||
4.75%, 09/15/44 (Call 03/15/44) | 265 | 253,969 | ||||||
5.00%, 09/15/54 (Call 03/15/54) | 240 | 222,038 | ||||||
5.85%, 12/15/45 (Call 06/15/45) | 50 | 51,254 | ||||||
6.50%, 03/01/41 (Call 09/01/40) | 285 | 329,085 | ||||||
Motiva Enterprises LLC, 6.85%, 01/15/40(a) | 300 | 317,921 | ||||||
Nexen Inc. | ||||||||
5.88%, 03/10/35 | 250 | 290,819 | ||||||
6.40%, 05/15/37 | 250 | 309,484 | ||||||
7.50%, 07/30/39 | 385 | 538,016 | ||||||
7.88%, 03/15/32 | 160 | 217,606 | ||||||
Noble Energy Inc. | ||||||||
4.95%, 08/15/47 (Call 02/15/47)(b) | 50 | 46,783 | ||||||
5.05%, 11/15/44 (Call 05/15/44) | 285 | 267,050 | ||||||
5.25%, 11/15/43 (Call 05/15/43) | 300 | 281,950 | ||||||
6.00%, 03/01/41 (Call 09/01/40) | 400 | 415,277 | ||||||
Occidental Petroleum Corp. | ||||||||
4.10%, 02/15/47 (Call 08/15/46)(b) | 400 | 391,482 | ||||||
4.20%, 03/15/48 (Call 09/15/47) | 175 | 175,346 | ||||||
4.40%, 04/15/46 (Call 10/15/45) | 275 | 281,539 | ||||||
4.63%, 06/15/45 (Call 12/15/44) | 350 | 367,846 | ||||||
Pertamina Persero PT | ||||||||
6.45%, 05/30/44(a) | 1,400 | 1,552,250 | ||||||
6.50%, 11/07/48(a) | 200 | 221,959 | ||||||
Petro-Canada | ||||||||
5.35%, 07/15/33 | 125 | 133,238 | ||||||
5.95%, 05/15/35 | 111 | 124,842 | ||||||
6.80%, 05/15/38 | 510 | 628,143 |
68 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Oil & Gas (continued) | ||||||||
Petroleos del Peru SA | ||||||||
4.75%, 06/19/32(a) | $ | 600 | $ | 591,000 | ||||
5.63%, 06/19/47(a) | 200 | 203,250 | ||||||
Petroleos Mexicanos | ||||||||
5.50%, 06/27/44 | 700 | 549,290 | ||||||
5.63%, 01/23/46 | 865 | 676,862 | ||||||
6.35%, 02/12/48 | 50 | 41,420 | ||||||
6.38%, 01/23/45 | 1,150 | 967,150 | ||||||
6.50%, 06/02/41 | 1,050 | 910,875 | ||||||
6.63%, 06/15/35 | 900 | 814,500 | ||||||
6.63%, 06/15/38 | 200 | 176,700 | ||||||
6.75%, 09/21/47 | 1,880 | 1,629,960 | ||||||
Petronas Capital Ltd., 4.50%, 03/18/45(a) | 400 | 420,525 | ||||||
Phillips 66 | ||||||||
4.65%, 11/15/34 (Call 05/15/34) | 410 | 424,083 | ||||||
4.88%, 11/15/44 (Call 05/15/44) | 550 | 572,947 | ||||||
5.88%, 05/01/42(b) | 440 | 510,175 | ||||||
Shell International Finance BV | ||||||||
3.75%, 09/12/46(b) | 200 | 190,812 | ||||||
4.00%, 05/10/46 | 725 | 724,206 | ||||||
4.13%, 05/11/35(b) | 525 | 541,879 | ||||||
4.38%, 05/11/45 | 975 | 1,025,476 | ||||||
4.55%, 08/12/43 | 575 | 615,403 | ||||||
5.50%, 03/25/40 | 300 | 358,690 | ||||||
6.38%, 12/15/38 | 875 | 1,143,388 | ||||||
Sinopec Group Overseas Development 2012 Ltd., | ||||||||
4.88%, 05/17/42(a) | 700 | 744,579 | ||||||
Sinopec Group Overseas Development 2018 Ltd., | ||||||||
4.60%, 09/12/48(a) | 500 | 521,105 | ||||||
Suncor Energy Inc. | ||||||||
5.95%, 12/01/34 | 25 | 28,436 | ||||||
6.50%, 06/15/38 | 415 | 500,664 | ||||||
6.85%, 06/01/39(b) | 455 | 570,766 | ||||||
Tosco Corp., 8.13%, 02/15/30 | 61 | 82,491 | ||||||
Valero Energy Corp. | ||||||||
4.90%, 03/15/45 | 275 | 279,967 | ||||||
6.63%, 06/15/37 | 520 | 615,544 | ||||||
7.50%, 04/15/32 | 395 | 491,280 | ||||||
|
| |||||||
45,947,331 | ||||||||
Oil & Gas Services — 0.5% | ||||||||
Baker Hughes a GE Co. LLC, 5.13%, 09/15/40(b) | 400 | 405,615 | ||||||
Baker Hughes a GE Co. LLC/Baker HughesCo-Obligor Inc., 4.08%, 12/15/47 (Call 06/15/47) | 400 | 352,929 | ||||||
Halliburton Co. | ||||||||
4.50%, 11/15/41 (Call 05/15/41) | 200 | 191,959 | ||||||
4.75%, 08/01/43 (Call 02/01/43)(b) | 350 | 350,504 | ||||||
4.85%, 11/15/35 (Call 05/15/35) | 200 | 202,596 | ||||||
5.00%, 11/15/45 (Call 05/15/45) | 660 | 678,582 | ||||||
6.70%, 09/15/38 | 21 | 25,571 | ||||||
7.45%, 09/15/39 | 360 | 472,205 | ||||||
National Oilwell Varco Inc., 3.95%, 12/01/42 (Call 06/01/42) | 425 | 346,826 | ||||||
|
| |||||||
3,026,787 | ||||||||
Packaging & Containers — 0.1% | ||||||||
Sonoco Products Co., 5.75%, 11/01/40 (Call 05/01/40) | 128 | 138,689 | ||||||
WestRock MWV LLC | ||||||||
7.95%, 02/15/31 | 101 | 127,945 | ||||||
8.20%, 01/15/30 | 175 | 225,162 | ||||||
WRKCo Inc., 4.90%, 03/15/29 (Call 12/15/28) | 50 | 52,519 | ||||||
|
| |||||||
544,315 |
Security | Par (000) | Value | ||||||
Pharmaceuticals — 5.7% | ||||||||
AbbVie Inc. | ||||||||
4.30%, 05/14/36 (Call 11/14/35) | $ | 315 | $ | 287,310 | ||||
4.40%, 11/06/42 | 725 | 643,753 | ||||||
4.45%, 05/14/46 (Call 11/14/45) | 575 | 505,037 | ||||||
4.50%, 05/14/35 (Call 11/14/34) | 750 | 701,255 | ||||||
4.70%, 05/14/45 (Call 11/14/44) | 1,100 | 1,007,653 | ||||||
4.88%, 11/14/48 (Call 05/14/48)(b) | 355 | 333,444 | ||||||
Allergan Finance LLC, 4.63%, 10/01/42 (Call 04/01/42) | 60 | 54,131 | ||||||
Allergan Funding SCS | ||||||||
4.55%, 03/15/35 (Call 09/15/34) | 550 | 512,990 | ||||||
4.75%, 03/15/45 (Call 09/15/44)(b) | 400 | 369,196 | ||||||
4.85%, 06/15/44 (Call 12/15/43)(b) | 385 | 355,893 | ||||||
AmerisourceBergen Corp. | ||||||||
4.25%, 03/01/45 (Call 09/01/44) | 200 | 173,842 | ||||||
4.30%, 12/15/47 (Call 06/15/47)(b) | 240 | 209,310 | ||||||
AstraZeneca PLC | 395 | 362,134 | ||||||
4.38%, 11/16/45 | 405 | 391,627 | ||||||
4.38%, 08/17/48 (Call 02/17/48)(b) | 295 | 285,333 | ||||||
6.45%, 09/15/37 | 705 | 859,365 | ||||||
Bayer U.S. Finance II LLC | ||||||||
4.20%, 07/15/34 (Call 01/15/34)(a) | 350 | 312,092 | ||||||
4.38%, 12/15/28 (Call 09/15/28)(a) | 1,500 | 1,460,710 | ||||||
4.40%, 07/15/44 (Call 01/15/44)(a) | 275 | 232,201 | ||||||
4.65%, 11/15/43 (Call 05/15/43)(a) | 74 | 64,405 | ||||||
4.70%, 07/15/64 (Call 01/15/64)(a) | 200 | 157,580 | ||||||
4.88%, 06/25/48 (Call 12/25/47)(a) | 275 | 250,490 | ||||||
Bristol-Myers Squibb Co. | ||||||||
3.25%, 08/01/42(b) | 49 | 39,857 | ||||||
4.50%, 03/01/44 (Call 09/01/43) | 290 | 288,318 | ||||||
Cardinal Health Inc. | ||||||||
4.37%, 06/15/47 (Call 12/15/46) | 250 | 215,800 | ||||||
4.50%, 11/15/44 (Call 05/15/44) | 195 | 167,342 | ||||||
4.60%, 03/15/43 | 200 | 175,644 | ||||||
Cigna Corp. | ||||||||
4.80%, 08/15/38 (Call 02/15/38)(a) | 600 | 596,175 | ||||||
4.90%, 12/15/48 (Call 06/15/48)(a) | 735 | 727,049 | ||||||
CVS Health Corp. | ||||||||
4.78%, 03/25/38 (Call 09/25/37) | 1,460 | 1,416,829 | ||||||
4.88%, 07/20/35 (Call 01/20/35) | 300 | 295,826 | ||||||
5.05%, 03/25/48 (Call 09/25/47) | 2,495 | 2,467,077 | ||||||
5.13%, 07/20/45 (Call 01/20/45) | 1,010 | 997,810 | ||||||
5.30%, 12/05/43 (Call 06/05/43) | 273 | 276,076 | ||||||
Eli Lilly & Co. | ||||||||
3.70%, 03/01/45 (Call 09/01/44) | 165 | 156,782 | ||||||
3.95%, 05/15/47 (Call 11/15/46)(b) | 230 | 226,427 | ||||||
3.95%, 03/15/49 (Call 09/15/48) | 225 | 220,311 | ||||||
4.15%, 03/15/59 (Call 09/15/58) | 500 | 487,617 | ||||||
5.55%, 03/15/37(b) | 166 | 195,985 | ||||||
Express Scripts Holding Co. | ||||||||
4.80%, 07/15/46 (Call 01/15/46) | 625 | 614,362 | ||||||
6.13%, 11/15/41 | 165 | 185,646 | ||||||
GlaxoSmithKline Capital Inc. | ||||||||
4.20%, 03/18/43(b) | 185 | 187,796 | ||||||
5.38%, 04/15/34 | 200 | 230,580 | ||||||
6.38%, 05/15/38 | 850 | 1,074,929 | ||||||
Johnson & Johnson | ||||||||
3.40%, 01/15/38 (Call 07/15/37) | 100 | 95,226 | ||||||
3.50%, 01/15/48 (Call 07/15/47) | 300 | 280,872 | ||||||
3.55%, 03/01/36 (Call 09/01/35) | 375 | 364,427 |
SCHEDULE OF INVESTMENTS | 69 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pharmaceuticals (continued) | ||||||||
3.63%, 03/03/37 (Call 09/03/36) | $ | 405 | $ | 395,056 | ||||
3.70%, 03/01/46 (Call 09/01/45)(b) | 500 | 485,805 | ||||||
3.75%, 03/03/47 (Call 09/03/46) | 375 | 367,445 | ||||||
4.38%, 12/05/33 (Call 06/05/33) | 350 | 375,413 | ||||||
4.50%, 09/01/40 | 100 | 108,344 | ||||||
4.50%, 12/05/43 (Call 06/05/43)(b) | 200 | 216,928 | ||||||
4.85%, 05/15/41 | 186 | 210,047 | ||||||
4.95%, 05/15/33 | 311 | 355,060 | ||||||
5.85%, 07/15/38 | 100 | 125,781 | ||||||
5.95%, 08/15/37 | 400 | 504,054 | ||||||
McKesson Corp., 4.75%, 05/30/29 (Call 02/28/29) | 50 | 51,271 | ||||||
Mead Johnson Nutrition Co. | ||||||||
4.60%, 06/01/44 (Call 12/01/43) | 153 | 157,332 | ||||||
5.90%, 11/01/39 | 175 | 208,958 | ||||||
Merck & Co. Inc. | ||||||||
3.60%, 09/15/42 (Call 03/15/42) | 350 | 329,414 | ||||||
3.70%, 02/10/45 (Call 08/10/44)(b) | 625 | 594,853 | ||||||
4.15%, 05/18/43 | 500 | 511,274 | ||||||
6.55%, 09/15/37 | 75 | 98,917 | ||||||
Merck Sharp & Dohme Corp., 5.75%, 11/15/36 | 25 | 30,294 | ||||||
Mylan Inc., 5.40%, 11/29/43 (Call 05/29/43) | 375 | 331,255 | ||||||
Mylan NV, 5.25%, 06/15/46 (Call 12/15/45)(b) | 300 | 258,845 | ||||||
Novartis Capital Corp. | ||||||||
3.70%, 09/21/42(b) | 200 | 192,365 | ||||||
4.00%, 11/20/45 (Call 05/20/45)(b) | 410 | 410,652 | ||||||
4.40%, 05/06/44 | 325 | 345,906 | ||||||
Perrigo Finance Unlimited Co., 4.90%, 12/15/44 | ||||||||
(Call 06/15/44) | 50 | 40,157 | ||||||
Pfizer Inc. | ||||||||
4.00%, 12/15/36 | 360 | 363,410 | ||||||
4.13%, 12/15/46 | 500 | 508,676 | ||||||
4.30%, 06/15/43 | 300 | 310,544 | ||||||
4.40%, 05/15/44 | 425 | 446,436 | ||||||
5.60%, 09/15/40 | 100 | 119,228 | ||||||
7.20%, 03/15/39 | 925 | 1,305,135 | ||||||
Wyeth LLC | ||||||||
5.95%, 04/01/37 | 750 | 925,749 | ||||||
6.00%, 02/15/36 | 146 | 179,934 | ||||||
6.50%, 02/01/34 | 143 | 184,961 | ||||||
Zoetis Inc. | ||||||||
3.95%, 09/12/47 (Call 03/12/47) | 325 | 294,962 | ||||||
4.45%, 08/20/48 (Call 02/20/48) | 25 | 24,706 | ||||||
4.70%, 02/01/43 (Call 08/01/42) | 425 | 433,344 | ||||||
|
| |||||||
33,317,025 | ||||||||
Pipelines — 4.8% | ||||||||
Abu Dhabi Crude Oil Pipeline LLC, | 800 | 808,000 | ||||||
Buckeye Partners LP | ||||||||
5.60%, 10/15/44 (Call 04/15/44) | 160 | 147,618 | ||||||
5.85%, 11/15/43 (Call 05/15/43) | 140 | 131,757 | ||||||
Columbia Pipeline Group Inc., 5.80%, 06/01/45 (Call 12/01/44)(b) | 295 | 319,966 | ||||||
Enable Midstream Partners LP, 5.00%, 05/15/44 (Call 11/15/43) | 125 | 107,544 | ||||||
Enbridge Energy Partners LP | ||||||||
5.50%, 09/15/40 (Call 03/15/40) | 200 | 217,236 | ||||||
7.38%, 10/15/45 (Call 04/15/45) | 50 | 67,365 | ||||||
Series B, 7.50%, 04/15/38 | 200 | 260,335 | ||||||
Enbridge Inc. | ||||||||
4.50%, 06/10/44 (Call 12/10/43) | 295 | 288,632 | ||||||
5.50%, 12/01/46 (Call 05/29/46)(b) | 170 | 193,829 |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
Energy Transfer Operating LP | ||||||||
4.90%, 03/15/35 (Call 09/15/34) | $ | 200 | $ | 186,474 | ||||
5.15%, 02/01/43 (Call 08/01/42) | 200 | 183,605 | ||||||
5.15%, 03/15/45 (Call 09/15/44) | 250 | 232,096 | ||||||
5.30%, 04/15/47 (Call 10/15/46) | 325 | 306,425 | ||||||
5.95%, 10/01/43 (Call 04/01/43) | 15 | 15,017 | ||||||
6.05%, 06/01/41 (Call 12/01/40) | 50 | 50,935 | ||||||
6.13%, 12/15/45 (Call 06/15/45) | 400 | 416,915 | ||||||
6.25%, 04/15/49 (Call 10/15/48) | 600 | 643,888 | ||||||
6.50%, 02/01/42 (Call 08/01/41) | 285 | 308,718 | ||||||
6.63%, 10/15/36 | 180 | 194,209 | ||||||
7.50%, 07/01/38 | 290 | 340,533 | ||||||
Series 30Y, 6.00%, 06/15/48 (Call 12/15/47) | 15 | 15,522 | ||||||
Enterprise Products Operating LLC | ||||||||
4.25%, 02/15/48 (Call 08/15/47) | 300 | 280,988 | ||||||
4.45%, 02/15/43 (Call 08/15/42) | 350 | 337,961 | ||||||
4.85%, 08/15/42 (Call 02/15/42) | 315 | 321,899 | ||||||
4.85%, 03/15/44 (Call 09/15/43) | 600 | 613,596 | ||||||
4.90%, 05/15/46 (Call 11/15/45) | 435 | 447,325 | ||||||
4.95%, 10/15/54 (Call 04/15/54) | 200 | 200,639 | ||||||
5.10%, 02/15/45 (Call 08/15/44) | 425 | 447,896 | ||||||
5.70%, 02/15/42 | 265 | 295,372 | ||||||
5.95%, 02/01/41 | 285 | 326,145 | ||||||
6.13%, 10/15/39 | 250 | 291,147 | ||||||
7.55%, 04/15/38 | 150 | 196,746 | ||||||
Series D, 6.88%, 03/01/33 | 200 | 243,930 | ||||||
Series H, 6.65%, 10/15/34 | 141 | 172,178 | ||||||
EQM Midstream Partners LP, Series 30Y, 6.50%, 07/15/48 (Call 01/15/48) | 275 | 273,529 | ||||||
GNL Quintero SA, 4.63%, 07/31/29(a)(b) | 450 | 453,937 | ||||||
Kinder Morgan Energy Partners LP | ||||||||
4.70%, 11/01/42 (Call 05/01/42) | 250 | 235,031 | ||||||
5.00%, 08/15/42 (Call 02/15/42) | 375 | 366,826 | ||||||
5.00%, 03/01/43 (Call 09/01/42) | 300 | 293,207 | ||||||
5.40%, 09/01/44 (Call 03/01/44) | 250 | 255,245 | ||||||
5.50%, 03/01/44 (Call 09/01/43) | 305 | 315,068 | ||||||
5.80%, 03/15/35 | 300 | 319,390 | ||||||
6.38%, 03/01/41 | 230 | 260,268 | ||||||
6.55%, 09/15/40 | 100 | 114,729 | ||||||
6.95%, 01/15/38 | 400 | 478,285 | ||||||
7.30%, 08/15/33 | 36 | 43,991 | ||||||
7.40%, 03/15/31 | 118 | 142,735 | ||||||
7.50%, 11/15/40 | 95 | 117,671 | ||||||
7.75%, 03/15/32 | 100 | 125,906 | ||||||
Kinder Morgan Inc./DE | ||||||||
5.05%, 02/15/46 (Call 08/15/45) | 385 | 381,173 | ||||||
5.20%, 03/01/48 (Call 09/01/47) | 185 | 187,707 | ||||||
5.30%, 12/01/34 (Call 06/01/34) | 315 | 324,879 | ||||||
5.55%, 06/01/45 (Call 12/01/44) | 465 | 487,965 | ||||||
7.75%, 01/15/32 | 395 | 495,970 | ||||||
Magellan Midstream Partners LP | ||||||||
4.20%, 10/03/47 (Call 04/03/47) | 210 | 191,714 | ||||||
4.25%, 09/15/46 (Call 03/15/46)(b) | 200 | 185,874 | ||||||
4.85%, 02/01/49 (Call 08/01/48) | 100 | 101,562 | ||||||
5.15%, 10/15/43 (Call 04/15/43) | 250 | 258,724 | ||||||
MPLX LP | ||||||||
4.50%, 04/15/38 (Call 10/15/37) | 745 | 686,493 | ||||||
4.70%, 04/15/48 (Call 10/15/47) | 485 | 444,691 | ||||||
4.80%, 02/15/29 (Call 11/15/28) | 50 | 51,213 | ||||||
4.90%, 04/15/58 (Call 10/15/57) | 60 | 53,357 |
70 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Pipelines (continued) | ||||||||
5.20%, 03/01/47 (Call 09/01/46) | $ | 425 | $ | 414,452 | ||||
5.50%, 02/15/49 (Call 08/15/48) | 325 | 332,233 | ||||||
ONEOK Inc., 4.95%, 07/13/47 (Call 01/06/47) | 250 | 240,752 | ||||||
ONEOK Partners LP | 225 | 239,994 | ||||||
6.20%, 09/15/43 (Call 03/15/43) | 125 | 134,089 | ||||||
6.65%, 10/01/36 | 210 | 233,180 | ||||||
6.85%, 10/15/37 | 300 | 347,543 | ||||||
Phillips 66 Partners LP | ||||||||
4.68%, 02/15/45 (Call 08/15/44)(b) | 75 | 71,317 | ||||||
4.90%, 10/01/46 (Call 04/01/46) | 250 | 247,205 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | ||||||||
4.30%, 01/31/43 (Call 07/31/42) | 90 | 74,885 | ||||||
4.70%, 06/15/44 (Call 12/15/43) | 250 | 220,655 | ||||||
4.90%, 02/15/45 (Call 08/15/44) | 350 | 321,187 | ||||||
5.15%, 06/01/42 (Call 12/01/41) | 60 | 55,725 | ||||||
6.65%, 01/15/37 | 225 | 245,963 | ||||||
Southern Natural Gas Co. LLC, 8.00%, 03/01/32 | 50 | 64,392 | ||||||
Spectra Energy Partners LP | ||||||||
4.50%, 03/15/45 (Call 09/15/44) | 190 | 185,493 | ||||||
5.95%, 09/25/43 (Call 03/25/43) | 150 | 165,767 | ||||||
Sunoco Logistics Partners Operations LP | 250 | 223,254 | ||||||
5.30%, 04/01/44 (Call 10/01/43) | 275 | 257,555 | ||||||
5.35%, 05/15/45 (Call 11/15/44) | 100 | 94,133 | ||||||
5.40%, 10/01/47 (Call 04/01/47) | 835 | 801,178 | ||||||
6.10%, 02/15/42 | 175 | 179,086 | ||||||
Texas Eastern Transmission LP, 7.00%, 07/15/32 | 200 | 242,590 | ||||||
TransCanada PipeLines Ltd. | ||||||||
4.63%, 03/01/34 (Call 12/01/33) | 350 | 356,258 | ||||||
4.75%, 05/15/38 (Call 11/15/37)(b) | 100 | 100,982 | ||||||
4.88%, 05/15/48 (Call 11/15/47) | 525 | 528,793 | ||||||
5.00%, 10/16/43 (Call 04/16/43) | 400 | 403,879 | ||||||
5.60%, 03/31/34 | 200 | 219,590 | ||||||
5.85%, 03/15/36 | 100 | 110,213 | ||||||
6.10%, 06/01/40 | 279 | 323,134 | ||||||
6.20%, 10/15/37 | 200 | 229,848 | ||||||
7.25%, 08/15/38 | 325 | 413,491 | ||||||
7.63%, 01/15/39 | 300 | 395,687 | ||||||
Transcontinental Gas Pipe Line Co. LLC | ||||||||
4.45%, 08/01/42 (Call 02/01/42) | 300 | 281,907 | ||||||
4.60%, 03/15/48 (Call 09/15/47) | 475 | 452,660 | ||||||
5.40%, 08/15/41 (Call 02/15/41) | 151 | 157,194 | ||||||
Western Midstream Operating LP | ||||||||
5.45%, 04/01/44 (Call 10/01/43) | 350 | 322,294 | ||||||
5.50%, 08/15/48 (Call 02/15/48) | 160 | 150,027 | ||||||
Williams Companies Inc. (The) | ||||||||
4.90%, 01/15/45 (Call 07/15/44) | 225 | 216,587 | ||||||
5.10%, 09/15/45 (Call 03/15/45) | 305 | 302,026 | ||||||
5.40%, 03/04/44 (Call 09/04/43) | 175 | 177,014 | ||||||
5.80%, 11/15/43 (Call 05/15/43) | 50 | 53,237 | ||||||
6.30%, 04/15/40 | 405 | 456,555 | ||||||
|
| |||||||
28,303,585 | ||||||||
Private Equity — 0.0% | ||||||||
Apollo Management Holdings LP, 5.00%, 03/15/48 (Call 09/15/47)(a) | 75 | 69,282 | ||||||
Carlyle Finance LLC, 5.65%, 09/15/48 | 250 | 242,754 | ||||||
|
| |||||||
312,036 |
Security | Par (000) | Value | ||||||
Real Estate — 0.0% | ||||||||
WEA Finance LLC, 4.63%, 09/20/48 (Call 03/20/48)(a) | $ | 100 | $ | 100,842 | ||||
|
| |||||||
Real Estate Investment Trusts — 1.0% | ||||||||
Alexandria Real Estate Equities Inc., 4.70%, 07/01/30 (Call 04/01/30) | 425 | 439,288 | ||||||
AvalonBay Communities Inc. | ||||||||
3.90%, 10/15/46 (Call 04/15/46) | 195 | 182,144 | ||||||
4.15%, 07/01/47 (Call 01/01/47) | 150 | 147,027 | ||||||
Crown Castle International Corp., 5.20%, 02/15/49 (Call 08/15/48) | 85 | 84,758 | ||||||
ERP Operating LP | ||||||||
4.50%, 07/01/44 (Call 01/01/44) | 100 | 103,266 | ||||||
4.50%, 06/01/45 (Call 12/01/44) | 315 | 325,708 | ||||||
Essex Portfolio LP, 4.50%, 03/15/48 (Call 09/15/47) | 100 | 97,771 | ||||||
Federal Realty Investment Trust | ||||||||
3.63%, 08/01/46 (Call 02/01/46) | 125 | 109,109 | ||||||
4.50%, 12/01/44 (Call 06/01/44) | 197 | 199,659 | ||||||
HCP Inc., 6.75%, 02/01/41 (Call 08/01/40) | 150 | 185,378 | ||||||
Kilroy Realty LP, 4.25%, 08/15/29 (Call 05/15/29) | 129 | 127,923 | ||||||
Kimco Realty Corp. | ||||||||
4.25%, 04/01/45 (Call 10/01/44) | 250 | 228,468 | ||||||
4.45%, 09/01/47 (Call 03/01/47) | 190 | 178,903 | ||||||
Realty Income Corp., 4.65%, 03/15/47 (Call 09/15/46) | 180 | 187,893 | ||||||
Regency Centers LP | ||||||||
4.40%, 02/01/47 (Call 08/01/46) | 200 | 190,705 | ||||||
4.65%, 03/15/49 (Call 09/15/48) | 150 | 148,148 | ||||||
Simon Property Group LP | ||||||||
4.25%, 10/01/44 (Call 04/01/44) | 14 | 13,881 | ||||||
4.25%, 11/30/46 (Call 05/30/46) | 135 | 134,299 | ||||||
4.75%, 03/15/42 (Call 09/15/41)(b) | 185 | 196,619 | ||||||
6.75%, 02/01/40 (Call 11/01/39) | 295 | 384,125 | ||||||
Trust F/1401, 6.95%, 01/30/44 (Call 07/30/43)(a)(b) | 200 | 201,975 | ||||||
Ventas Realty LP | ||||||||
4.38%, 02/01/45 (Call 08/01/44)(b) | 177 | 163,918 | ||||||
4.40%, 01/15/29 (Call 10/15/28) | 300 | 305,852 | ||||||
4.88%, 04/15/49 (Call 10/15/48) | 65 | 64,697 | ||||||
5.70%, 09/30/43 (Call 03/30/43) | 26 | 28,787 | ||||||
Welltower Inc. | ||||||||
4.95%, 09/01/48 (Call 03/01/48) | 250 | 253,935 | ||||||
6.50%, 03/15/41 (Call 09/15/40) | 165 | 194,769 | ||||||
Weyerhaeuser Co., 7.38%, 03/15/32 | 600 | 757,102 | ||||||
|
| |||||||
5,636,107 | ||||||||
Retail — 2.7% | ||||||||
Darden Restaurants Inc., 4.55%, 02/15/48 (Call 08/15/47) | 95 | 86,837 | ||||||
Home Depot Inc. (The) | ||||||||
3.50%, 09/15/56 (Call 03/15/56) | 345 | 304,041 | ||||||
3.90%, 06/15/47 (Call 12/15/46)(b) | 170 | 164,033 | ||||||
4.20%, 04/01/43 (Call 10/01/42) | 150 | 151,136 | ||||||
4.25%, 04/01/46 (Call 10/01/45) | 500 | 508,929 | ||||||
4.40%, 03/15/45 (Call 09/15/44) | 375 | 388,693 | ||||||
4.50%, 12/06/48 (Call 06/06/48) | 375 | 396,649 | ||||||
4.88%, 02/15/44 (Call 08/15/43) | 450 | 496,290 | ||||||
5.40%, 09/15/40 (Call 03/15/40) | 121 | 140,798 | ||||||
5.88%, 12/16/36 | 675 | 819,425 | ||||||
5.95%, 04/01/41 (Call 10/01/40) | 450 | 556,954 | ||||||
Kohl’s Corp., 5.55%, 07/17/45 (Call 01/17/45) | 160 | 144,511 | ||||||
Lowe’s Companies Inc. | ||||||||
3.70%, 04/15/46 (Call 10/15/45)(b) | 475 | 402,215 | ||||||
4.05%, 05/03/47 (Call 11/03/46)(b) | 395 | 352,761 | ||||||
4.25%, 09/15/44 (Call 03/15/44) | 175 | 161,150 |
SCHEDULE OF INVESTMENTS | 71 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Retail (continued) | ||||||||
4.38%, 09/15/45 (Call 03/15/45) | $ | 285 | $ | 264,216 | ||||
4.65%, 04/15/42 (Call 10/15/41) | 225 | 217,548 | ||||||
Macy’s Retail Holdings Inc. | ||||||||
4.30%, 02/15/43 (Call 08/15/42) | 100 | 73,173 | ||||||
4.50%, 12/15/34 (Call 06/15/34) | 22 | 18,146 | ||||||
5.13%, 01/15/42 (Call 07/15/41) | 105 | 86,731 | ||||||
McDonald’s Corp. | ||||||||
3.63%, 05/01/43 | 11 | 9,546 | ||||||
3.70%, 02/15/42 | 355 | 315,315 | ||||||
4.45%, 03/01/47 (Call 09/01/46) | 180 | 175,187 | ||||||
4.45%, 09/01/48 (Call 03/01/48) | 80 | 77,828 | ||||||
4.60%, 05/26/45 (Call 11/26/44) | 300 | 296,608 | ||||||
4.70%, 12/09/35 (Call 06/09/35) | 195 | 200,631 | ||||||
4.88%, 07/15/40 | 6 | 6,164 | ||||||
4.88%, 12/09/45 (Call 06/09/45) | 400 | 412,465 | ||||||
5.70%, 02/01/39 | 255 | 288,422 | ||||||
6.30%, 10/15/37 | 375 | 449,219 | ||||||
6.30%, 03/01/38 | 275 | 326,807 | ||||||
Nordstrom Inc., 5.00%, 01/15/44 (Call 07/15/43) | 210 | 179,683 | ||||||
Starbucks Corp. | ||||||||
3.75%, 12/01/47 (Call 06/01/47) | 150 | 128,486 | ||||||
4.30%, 06/15/45 (Call 12/10/44) | 190 | 178,695 | ||||||
4.50%, 11/15/48 (Call 05/15/48) | 275 | 265,155 | ||||||
Target Corp. | ||||||||
3.63%, 04/15/46 | 575 | 517,220 | ||||||
3.90%, 11/15/47 (Call 05/15/47) | 269 | 253,440 | ||||||
4.00%, 07/01/42 | 500 | 484,675 | ||||||
Tiffany & Co., 4.90%, 10/01/44 (Call 04/01/44)(b) | 125 | 109,203 | ||||||
Walgreen Co., 4.40%, 09/15/42 | 250 | 224,714 | ||||||
Walgreens Boots Alliance Inc. | ||||||||
4.50%, 11/18/34 (Call 05/18/34) | 305 | 295,248 | ||||||
4.65%, 06/01/46 (Call 12/01/45) | 200 | 186,394 | ||||||
4.80%, 11/18/44 (Call 05/18/44) | 315 | 294,167 | ||||||
Walmart Inc. | ||||||||
3.63%, 12/15/47 (Call 06/15/47) | 150 | 140,488 | ||||||
3.95%, 06/28/38 (Call 12/28/37) | 790 | 792,048 | ||||||
4.00%, 04/11/43 (Call 10/11/42) | 435 | 432,994 | ||||||
4.05%, 06/29/48 (Call 12/29/47) | 1,050 | 1,059,127 | ||||||
4.30%, 04/22/44 (Call 10/22/43) | 250 | 261,278 | ||||||
4.75%, 10/02/43 (Call 04/02/43) | 175 | 190,312 | ||||||
5.00%, 10/25/40 | 100 | 113,483 | ||||||
5.25%, 09/01/35 | 420 | 490,849 | ||||||
5.63%, 04/01/40 | 135 | 163,636 | ||||||
5.63%, 04/15/41 | 450 | 548,185 | ||||||
6.20%, 04/15/38 | 60 | 76,474 | ||||||
6.50%, 08/15/37(b) | 100 | 130,734 | ||||||
|
| |||||||
15,809,116 | ||||||||
Semiconductors — 0.8% | ||||||||
Analog Devices Inc. | ||||||||
4.50%, 12/05/36 (Call 06/05/36) | 50 | 47,470 | ||||||
5.30%, 12/15/45 (Call 06/15/45) | 135 | 141,274 | ||||||
Applied Materials Inc. | ||||||||
4.35%, 04/01/47 (Call 10/01/46)(b) | 160 | 160,364 | ||||||
5.10%, 10/01/35 (Call 04/01/35) | 200 | 219,392 | ||||||
5.85%, 06/15/41 | 320 | 383,703 | ||||||
Intel Corp. | ||||||||
3.73%, 12/08/47 (Call 06/08/47) | 550 | 523,355 | ||||||
4.00%, 12/15/32 | 375 | 397,742 | ||||||
4.10%, 05/19/46 (Call 11/19/45) | 660 | 659,921 | ||||||
4.10%, 05/11/47 (Call 11/11/46) | 175 | 176,218 |
Security | Par (000) | Value | ||||||
Semiconductors (continued) | ||||||||
4.80%, 10/01/41(b) | $ | 100 | $ | 111,478 | ||||
4.90%, 07/29/45 (Call 01/29/45) | 60 | 67,609 | ||||||
KLA-Tencor Corp., 5.65%, 11/01/34 (Call 07/01/34) | 125 | 127,117 | ||||||
QUALCOMM Inc. | ||||||||
4.30%, 05/20/47 (Call 11/20/46) | 455 | 408,164 | ||||||
4.65%, 05/20/35 (Call 11/20/34) | 400 | 391,196 | ||||||
4.80%, 05/20/45 (Call 11/20/44) | 410 | 394,710 | ||||||
Texas Instruments Inc., 4.15%, 05/15/48 (Call 11/15/47)(b) | 350 | 356,877 | ||||||
|
| |||||||
4,566,590 | ||||||||
Software — 2.8% | ||||||||
Activision Blizzard Inc., 4.50%, 06/15/47 (Call 12/15/46) | 175 | 155,516 | ||||||
Fidelity National Information Services Inc., 4.50%, 08/15/46 (Call 02/15/46) | 250 | 227,097 | ||||||
Microsoft Corp. | ||||||||
3.45%, 08/08/36 (Call 02/08/36) | 725 | 703,679 | ||||||
3.50%, 02/12/35 (Call 08/12/34) | 550 | 537,956 | ||||||
3.50%, 11/15/42 | 250 | 235,709 | ||||||
3.70%, 08/08/46 (Call 02/08/46) | 675 | 658,755 | ||||||
3.75%, 05/01/43 (Call 11/01/42) | 250 | 244,466 | ||||||
3.75%, 02/12/45 (Call 08/12/44) | 635 | 622,967 | ||||||
3.95%, 08/08/56 (Call 02/08/56) | 690 | 677,245 | ||||||
4.00%, 02/12/55 (Call 08/12/54) | 725 | 718,795 | ||||||
4.10%, 02/06/37 (Call 08/06/36) | 550 | 575,244 | ||||||
4.20%, 11/03/35 (Call 05/03/35) | 425 | 449,785 | ||||||
4.45%, 11/03/45 (Call 05/03/45)(b) | 925 | 1,007,171 | ||||||
4.50%, 10/01/40 | 475 | 517,003 | ||||||
4.50%, 02/06/57 (Call 08/06/56) | 700 | 767,540 | ||||||
4.75%, 11/03/55 (Call 05/03/55) | 285 | 322,481 | ||||||
4.88%, 12/15/43 (Call 06/15/43) | 300 | 339,491 | ||||||
5.20%, 06/01/39 | 222 | 262,111 | ||||||
5.30%, 02/08/41 | 475 | 569,219 | ||||||
Series 30Y, 4.25%, 02/06/47 (Call 08/06/46)(b) | 700 | 742,812 | ||||||
Oracle Corp. | ||||||||
3.25%, 05/15/30 (Call 02/15/30) | 350 | 335,882 | ||||||
3.80%, 11/15/37 (Call 05/15/37) | 725 | 695,192 | ||||||
3.85%, 07/15/36 (Call 01/15/36) | 375 | 363,316 | ||||||
3.90%, 05/15/35 (Call 11/15/34) | 525 | 515,049 | ||||||
4.00%, 07/15/46 (Call 01/15/46) | 800 | 765,121 | ||||||
4.00%, 11/15/47 (Call 05/15/47) | 625 | 595,173 | ||||||
4.13%, 05/15/45 (Call 11/15/44) | 555 | 538,907 | ||||||
4.30%, 07/08/34 (Call 01/08/34) | 650 | 675,729 | ||||||
4.38%, 05/15/55 (Call 11/15/54) | 389 | 387,763 | ||||||
4.50%, 07/08/44 (Call 01/08/44)(b) | 325 | 336,308 | ||||||
5.38%, 07/15/40 | 550 | 627,851 | ||||||
6.13%, 07/08/39 | 325 | 401,813 | ||||||
6.50%, 04/15/38 | 90 | 115,218 | ||||||
|
| |||||||
16,688,364 | ||||||||
Telecommunications — 7.4% | ||||||||
America Movil SAB de CV | ||||||||
4.38%, 07/16/42 | 443 | 442,889 | ||||||
6.13%, 11/15/37 | 125 | 148,086 | ||||||
6.13%, 03/30/40 | 685 | 828,138 | ||||||
6.38%, 03/01/35 | 165 | 198,532 | ||||||
AT&T Inc. | ||||||||
4.30%, 02/15/30 (Call 11/15/29) | 1,285 | 1,261,476 | ||||||
4.30%, 12/15/42 (Call 06/15/42) | 535 | 468,550 | ||||||
4.35%, 06/15/45 (Call 12/15/44) | 765 | 666,372 | ||||||
4.50%, 05/15/35 (Call 11/15/34) | 900 | 847,770 | ||||||
4.50%, 03/09/48 (Call 09/09/47) | 1,135 | 1,008,831 |
72 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
4.55%, 03/09/49 (Call 09/09/48) | $ | 710 | $ | 635,219 | ||||
4.75%, 05/15/46 (Call 11/15/45)(b) | 1,175 | 1,090,866 | ||||||
4.80%, 06/15/44 (Call 12/15/43) | 800 | 750,948 | ||||||
4.85%, 03/01/39 (Call 09/01/38) | 100 | 95,549 | ||||||
4.90%, 08/15/37 (Call 02/14/37) | 25 | 24,109 | ||||||
5.15%, 03/15/42 | 460 | 447,902 | ||||||
5.15%, 11/15/46 (Call 05/15/46) | 575 | 561,187 | ||||||
5.15%, 02/15/50 (Call 08/14/49)(b) | 1,165 | 1,128,236 | ||||||
5.25%, 03/01/37 (Call 09/01/36) | 1,005 | 1,012,044 | ||||||
5.30%, 08/15/58 (Call 02/14/58) | 500 | 474,468 | ||||||
5.35%, 09/01/40 | 650 | 652,019 | ||||||
5.45%, 03/01/47 (Call 09/01/46)(b) | 775 | 787,648 | ||||||
5.55%, 08/15/41 | 150 | 153,589 | ||||||
5.65%, 02/15/47 (Call 08/15/46) | 525 | 545,976 | ||||||
5.70%, 03/01/57 (Call 09/01/56) | 335 | 341,547 | ||||||
6.00%, 08/15/40 (Call 05/15/40) | 300 | 322,330 | ||||||
6.15%, 09/15/34 | 50 | 54,675 | ||||||
6.30%, 01/15/38(b) | 25 | 27,884 | ||||||
6.35%, 03/15/40 | 225 | 248,020 | ||||||
6.38%, 03/01/41 | 375 | 416,032 | ||||||
6.45%, 06/15/34 | 25 | 26,641 | ||||||
AT&T Mobility LLC, 7.13%, 12/15/31 | 25 | 29,114 | ||||||
Bell Canada Inc., 4.46%, 04/01/48 (Call 10/01/47) | 525 | 524,799 | ||||||
British Telecommunications PLC, 9.63%, 12/15/30 | 925 | 1,292,216 | ||||||
Cisco Systems Inc. | ||||||||
5.50%, 01/15/40 | 600 | 733,784 | ||||||
5.90%, 02/15/39 | 610 | 779,164 | ||||||
Deutsche Telekom International Finance BV | ||||||||
4.75%, 06/21/38 (Call 12/21/37)(a)(b) | 275 | 270,534 | ||||||
8.75%, 06/15/30 | 1,175 | 1,575,333 | ||||||
9.25%, 06/01/32 | 219 | 312,016 | ||||||
Juniper Networks Inc., 5.95%, 03/15/41 | 175 | 168,920 | ||||||
Koninklijke KPN NV, 8.38%, 10/01/30 | 390 | 469,645 | ||||||
Motorola Solutions Inc., 5.50%, 09/01/44 | 230 | 222,714 | ||||||
Orange SA | ||||||||
5.38%, 01/13/42 | 200 | 216,683 | ||||||
5.50%, 02/06/44 (Call 08/06/43) | 225 | 247,486 | ||||||
9.00%, 03/01/31 | 675 | 946,701 | ||||||
Rogers Communications Inc. | ||||||||
4.30%, 02/15/48 (Call 08/15/47) | 450 | 434,768 | ||||||
4.50%, 03/15/43 (Call 09/15/42) | 150 | 147,821 | ||||||
5.00%, 03/15/44 (Call 09/15/43) | 350 | 370,771 | ||||||
5.45%, 10/01/43 (Call 04/01/43) | 56 | 61,752 | ||||||
7.50%, 08/15/38 | 150 | 197,859 | ||||||
Telefonica Emisiones SAU | ||||||||
4.67%, 03/06/38 | 250 | 228,876 | ||||||
4.90%, 03/06/48(b) | 400 | 368,240 | ||||||
5.21%, 03/08/47 | 525 | 502,840 | ||||||
5.52%, 03/01/49 (Call 09/01/48) | 150 | 149,775 | ||||||
7.05%, 06/20/36 | 600 | 705,896 | ||||||
Telefonica Europe BV, 8.25%, 09/15/30 | 600 | 774,776 | ||||||
TELUS Corp., 4.60%, 11/16/48 (Call 05/16/48)(b) | 135 | 135,415 | ||||||
Verizon Communications Inc. | ||||||||
3.85%, 11/01/42 (Call 05/01/42) | 475 | 425,218 | ||||||
4.13%, 08/15/46 | 525 | 480,559 | ||||||
4.27%, 01/15/36 | 900 | 878,390 | ||||||
4.40%, 11/01/34 (Call 05/01/34) | 970 | 971,794 | ||||||
4.50%, 08/10/33 | 1,475 | 1,502,604 | ||||||
4.52%, 09/15/48 | 1,460 | 1,427,652 | ||||||
4.67%, 03/15/55 | 1,450 | 1,410,186 |
Security | Par (000) | Value | ||||||
Telecommunications (continued) | ||||||||
4.75%, 11/01/41 | $ | 200 | $ | 203,003 | ||||
4.81%, 03/15/39 | 580 | 595,062 | ||||||
4.86%, 08/21/46 | 1,240 | 1,274,932 | ||||||
5.01%, 04/15/49 | 1,025 | 1,072,904 | ||||||
5.01%, 08/21/54 | 1,600 | 1,641,270 | ||||||
5.25%, 03/16/37 | 265 | 288,476 | ||||||
5.50%, 03/16/47 | 465 | 516,882 | ||||||
6.40%, 02/15/38 | 50 | 59,424 | ||||||
6.55%, 09/15/43 | 250 | 309,102 | ||||||
7.75%, 12/01/30 | 125 | 162,141 | ||||||
Vodafone Group PLC | ||||||||
4.38%, 02/19/43 | 625 | 536,036 | ||||||
5.00%, 05/30/38(b) | 150 | 142,159 | ||||||
5.25%, 05/30/48 | 980 | 933,960 | ||||||
6.15%, 02/27/37 | 270 | 289,448 | ||||||
6.25%, 11/30/32 | 200 | 223,468 | ||||||
7.88%, 02/15/30 | 410 | 509,937 | ||||||
|
| |||||||
43,390,038 | ||||||||
Toys, Games & Hobbies — 0.1% | ||||||||
Hasbro Inc. | ||||||||
5.10%, 05/15/44 (Call 11/15/43) | 125 | 110,018 | ||||||
6.35%, 03/15/40 | 200 | 209,173 | ||||||
|
| |||||||
319,191 | ||||||||
Transportation — 3.2% | ||||||||
Burlington Northern Santa Fe LLC | ||||||||
3.90%, 08/01/46 (Call 02/01/46) | 290 | 279,559 | ||||||
4.05%, 06/15/48 (Call 12/15/47) | 300 | 294,809 | ||||||
4.13%, 06/15/47 (Call 12/15/46) | 10 | 9,930 | ||||||
4.15%, 04/01/45 (Call 10/01/44) | 400 | 401,289 | ||||||
4.38%, 09/01/42 (Call 03/01/42) | 260 | 267,617 | ||||||
4.40%, 03/15/42 (Call 09/15/41) | 265 | 274,234 | ||||||
4.45%, 03/15/43 (Call 09/15/42) | 221 | 229,895 | ||||||
4.55%, 09/01/44 (Call 03/01/44) | 300 | 315,051 | ||||||
4.70%, 09/01/45 (Call 03/01/45) | 295 | 317,926 | ||||||
4.90%, 04/01/44 (Call 10/01/43) | 100 | 110,163 | ||||||
4.95%, 09/15/41 (Call 03/15/41) | 114 | 125,887 | ||||||
5.05%, 03/01/41 (Call 09/01/40) | 56 | 62,099 | ||||||
5.15%, 09/01/43 (Call 03/01/43) | 150 | 169,986 | ||||||
5.40%, 06/01/41 (Call 12/01/40) | 250 | 287,782 | ||||||
5.75%, 05/01/40 (Call 11/01/39) | 300 | 361,062 | ||||||
6.15%, 05/01/37 | 220 | 269,919 | ||||||
6.20%, 08/15/36 | 200 | 247,180 | ||||||
7.95%, 08/15/30 | 75 | 103,399 | ||||||
Canadian National Railway Co. | ||||||||
3.20%, 08/02/46 (Call 02/02/46) | 300 | 263,883 | ||||||
3.65%, 02/03/48 (Call 08/03/47)(b) | 250 | 240,085 | ||||||
4.45%, 01/20/49 (Call 07/20/48) | 100 | 108,968 | ||||||
6.20%, 06/01/36 | 50 | 61,964 | ||||||
6.25%, 08/01/34 | 111 | 142,326 | ||||||
6.38%, 11/15/37 | 175 | 223,673 | ||||||
Cie. de Chemin de Fer Canadien Pacifique | ||||||||
4.80%, 09/15/35 (Call 03/15/35) | 197 | 208,203 | ||||||
4.80%, 08/01/45 (Call 02/01/45) | 100 | 106,176 | ||||||
5.95%, 05/15/37 | 16 | 18,794 | ||||||
6.13%, 09/15/15 (Call 03/15/15) | 255 | 296,501 | ||||||
7.13%, 10/15/31 | 500 | 636,797 | ||||||
CSX Corp. | ||||||||
3.80%, 11/01/46 (Call 05/01/46) | 225 | 201,951 | ||||||
3.95%, 05/01/50 (Call 11/01/49) | 150 | 135,176 |
SCHEDULE OF INVESTMENTS | 73 |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Transportation (continued) | ||||||||
4.10%, 03/15/44 (Call 09/15/43) | $ | 200 | $ | 188,653 | ||||
4.25%, 03/15/29 (Call 12/15/28) | 70 | 72,094 | ||||||
4.25%, 11/01/66 (Call 05/01/66)(b) | 300 | 258,715 | ||||||
4.30%, 03/01/48 (Call 09/01/47) | 250 | 242,028 | ||||||
4.40%, 03/01/43 (Call 09/01/42) | 325 | 317,064 | ||||||
4.50%, 03/15/49 (Call 09/15/48) | 95 | 93,787 | ||||||
4.50%, 08/01/54 (Call 02/01/54) | 100 | 96,909 | ||||||
4.75%, 05/30/42 (Call 11/30/41) | 300 | 307,631 | ||||||
5.50%, 04/15/41 (Call 10/15/40) | 120 | 133,111 | ||||||
6.00%, 10/01/36 | 250 | 288,870 | ||||||
6.15%, 05/01/37 | 100 | 118,443 | ||||||
6.22%, 04/30/40 | 205 | 244,452 | ||||||
FedEx Corp. | ||||||||
3.88%, 08/01/42(b) | 150 | 128,097 | ||||||
3.90%, 02/01/35 | 300 | 276,938 | ||||||
4.05%, 02/15/48 (Call 08/15/47) | 350 | 303,305 | ||||||
4.10%, 04/15/43 | 152 | 134,046 | ||||||
4.10%, 02/01/45 | 285 | 248,452 | ||||||
4.40%, 01/15/47 (Call 07/15/46) | 65 | 59,224 | ||||||
4.55%, 04/01/46 (Call 10/01/45) | 400 | 373,811 | ||||||
4.75%, 11/15/45 (Call 05/15/45) | 525 | 506,282 | ||||||
4.90%, 01/15/34 | 215 | 226,189 | ||||||
4.95%, 10/17/48 (Call 04/17/48)(b) | 65 | 64,492 | ||||||
5.10%, 01/15/44(b) | 300 | 302,795 | ||||||
Kansas City Southern | ||||||||
4.30%, 05/15/43 (Call 11/15/42) | 100 | 94,519 | ||||||
4.95%, 08/15/45 (Call 02/15/45) | 245 | 251,537 | ||||||
Norfolk Southern Corp. | ||||||||
3.94%, 11/01/47 (Call 05/01/47) | 200 | 186,733 | ||||||
3.95%, 10/01/42 (Call 04/01/42) | 140 | 131,189 | ||||||
4.05%, 08/15/52 (Call 02/15/52) | 480 | 444,293 | ||||||
4.15%, 02/28/48 (Call 08/28/47) | 225 | 218,088 | ||||||
4.45%, 06/15/45 (Call 12/15/44) | 275 | 275,754 | ||||||
4.65%, 01/15/46 (Call 07/15/45) | 95 | 97,659 | ||||||
4.84%, 10/01/41 | 450 | 472,113 | ||||||
Polar Tankers Inc., 5.95%, 05/10/37(a) | 30 | 34,659 | ||||||
TTX Co., 4.60%, 02/01/49 (Call 08/01/48)(a) | 250 | 256,980 | ||||||
Union Pacific Corp. | ||||||||
3.35%, 08/15/46 (Call 02/15/46) | 150 | 124,459 | ||||||
3.38%, 02/01/35 (Call 08/01/34) | 310 | 279,945 | ||||||
3.60%, 09/15/37 (Call 03/15/37) | 300 | 272,327 | ||||||
3.88%, 02/01/55 (Call 08/01/54) | 225 | 193,828 | ||||||
4.00%, 04/15/47 (Call 10/15/46) | 150 | 139,002 | ||||||
4.05%, 11/15/45 (Call 05/15/45) | 225 | 210,200 | ||||||
4.05%, 03/01/46 (Call 09/01/45) | 250 | 235,450 | ||||||
4.15%, 01/15/45 (Call 07/15/44) | 110 | 103,242 | ||||||
4.25%, 04/15/43 (Call 10/15/42) | 165 | 157,456 | ||||||
4.30%, 06/15/42 (Call 12/15/41) | 150 | 145,256 | ||||||
4.30%, 03/01/49 (Call 09/01/48) | 250 | 244,766 | ||||||
4.38%, 09/10/38 (Call 03/10/38) | 25 | 24,931 | ||||||
4.38%, 11/15/65 (Call 05/15/65) | 96 | 87,245 | ||||||
4.50%, 09/10/48 (Call 03/10/48) | 500 | 502,006 | ||||||
4.75%, 09/15/41 (Call 03/15/41) | 158 | 161,877 | ||||||
4.80%, 09/10/58 (Call 03/10/58)(b) | 85 | 87,539 | ||||||
4.82%, 02/01/44 (Call 08/01/43) | 220 | 227,507 | ||||||
6.63%, 02/01/29(b) | 250 | 304,454 |
Security | Par/ Shares (000) | Value | ||||||
Transportation (continued) | ||||||||
United Parcel Service Inc. | ||||||||
3.40%, 11/15/46 (Call 05/15/46) | $ | 110 | $ | 95,834 | ||||
3.63%, 10/01/42 | 105 | 95,369 | ||||||
4.88%, 11/15/40 (Call 05/15/40) | 365 | 399,516 | ||||||
6.20%, 01/15/38 | 600 | 746,381 | ||||||
|
| |||||||
19,059,786 | ||||||||
Trucking & Leasing — 0.0% | ||||||||
GATX Corp., 5.20%, 03/15/44 (Call 09/15/43) | 150 | 149,364 | ||||||
|
| |||||||
Water — 0.2% | ||||||||
American Water Capital Corp. | ||||||||
3.75%, 09/01/47 (Call 03/01/47) | 200 | 185,333 | ||||||
4.00%, 12/01/46 (Call 06/01/46) | 95 | 90,623 | ||||||
4.20%, 09/01/48 (Call 03/01/48) | 35 | 34,690 | ||||||
4.30%, 12/01/42 (Call 06/01/42) | 16 | 16,045 | ||||||
4.30%, 09/01/45 (Call 03/01/45) | 350 | 350,144 | ||||||
6.59%, 10/15/37(b) | 324 | 411,550 | ||||||
Veolia Environnement SA, 6.75%, 06/01/38 | 179 | 216,646 | ||||||
|
| |||||||
1,305,031 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 97.2% |
| 572,138,350 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 8.5% | ||||||||
BlackRock Cash Funds: Institutional, | ||||||||
2.62%(g)(h)(i) | 44,702 | 44,719,478 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
2.33%(g)(h) | 5,363 | 5,362,954 | ||||||
|
| |||||||
50,082,432 | ||||||||
|
| |||||||
Total Short-Term Investments — 8.5% |
| 50,082,432 | ||||||
|
| |||||||
Total Investments in Securities — 105.7% |
| 622,220,782 | ||||||
Other Assets, Less Liabilities — (5.7)% |
| (33,332,911 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 588,887,871 | |||||
|
|
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | All or a portion of this security is on loan. |
(c) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. Reference index and spread are provided if the rate is currently floating. |
(d) | Variable or floating rate security. Rate shown is the rate in effect as ofperiod-end. |
(e) | Perpetual security with no stated maturity date. |
(f) | 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. |
(g) | Affiliate of the Fund. |
(h) | Annualized7-day yield as ofperiod-end. |
(i) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
74 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) February 28, 2019 | iShares® Long-Term Corporate Bond ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 02/28/18 (000) | Net Activity (000) | Shares Held at 02/28/19 (000) | Value at 02/28/19 | Income | Net Realized Gain (Loss) (a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 79,862 | (35,160 | ) | 44,702 | $ | 44,719,478 | $ | 166,305 | (b) | $ | 1,830 | $ | 10,537 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 11,712 | (6,349 | ) | 5,363 | 5,362,954 | 142,855 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 50,082,432 | $ | 309,160 | $ | 1,830 | $ | 10,537 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Interest Rate Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 98,151 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — short | $ | (1,433,812 | ) |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 572,138,350 | $ | — | $ | 572,138,350 | ||||||||
Money Market Funds | 50,082,432 | — | — | 50,082,432 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 50,082,432 | $ | 572,138,350 | $ | — | $ | 622,220,782 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 75 |
Statement of Assets and Liabilities
February 28, 2019
iShares Long-Term Corporate Bond ETF | ||||
ASSETS | ||||
Investments in securities, at value (including securities on loan)(a): | ||||
Unaffiliated(b) | $ | 572,138,350 | ||
Affiliated(c) | 50,082,432 | |||
Receivables: | ||||
Investments sold | 10,432,901 | |||
Securities lending income — Affiliated | 11,084 | |||
Dividends | 12,376 | |||
Interest | 7,593,232 | |||
|
| |||
Total assets | 640,270,375 | |||
|
| |||
LIABILITIES | ||||
Collateral on securities loaned, at value | 44,696,548 | |||
Payables: | ||||
Investments purchased | 6,658,656 | |||
Investment advisory fees | 27,300 | |||
|
| |||
Total liabilities | 51,382,504 | |||
|
| |||
NET ASSETS | $ | 588,887,871 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 628,936,281 | ||
Accumulated loss | (40,048,410 | ) | ||
|
| |||
NET ASSETS | $ | 588,887,871 | ||
|
| |||
Shares outstanding | 10,200,000 | |||
|
| |||
Net asset value | $ | 57.73 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Securities loaned, at value | $ | 42,610,052 | ||
(b) Investments, at cost — Unaffiliated | $ | 595,243,915 | ||
(c) Investments, at cost — Affiliated | $ | 50,066,040 |
See notes to financial statements.
76 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statement of Operations
Year Ended February 28, 2019
iShares Long-Term Corporate Bond ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 142,855 | ||
Interest — Unaffiliated | 26,776,991 | |||
Securities lending income — Affiliated — net | 166,305 | |||
Other income — Unaffiliated | 13,290 | |||
|
| |||
Total investment income | 27,099,441 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 648,764 | |||
|
| |||
Total expenses | 648,764 | |||
Less: | ||||
Investment advisory fees waived | (58,784 | ) | ||
|
| |||
Total expenses after fees waived | 589,980 | |||
|
| |||
Net investment income | 26,509,461 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated | (8,400,016 | ) | ||
Investments — Affiliated | 1,830 | |||
In-kind redemptions — Unaffiliated | (6,876,763 | ) | ||
Futures contracts | 98,151 | |||
|
| |||
Net realized loss | (15,176,798 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | (9,700,318 | ) | ||
Investments — Affiliated | 10,537 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | (9,689,781 | ) | ||
|
| |||
Net realized and unrealized loss | (24,866,579 | ) | ||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,642,882 | ||
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 77 |
Statement of Changes in Net Assets
iShares Long-Term Corporate Bond ETF | ||||||||
Year Ended 02/28/19 | Year Ended 02/28/18 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 26,509,461 | $ | 32,634,051 | ||||
Net realized gain (loss) | (15,176,798 | ) | 5,573,251 | |||||
Net change in unrealized appreciation (depreciation) | (9,689,781 | ) | (997,323 | ) | ||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 1,642,882 | 37,209,979 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a)(b) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (26,801,451 | ) | (32,962,172 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net decrease in net assets derived from capital share transactions | (100,635,843 | ) | (120,323,815 | ) | ||||
|
|
|
| |||||
NET ASSETS(b) | ||||||||
Total decrease in net assets | (125,794,412 | ) | (116,076,008 | ) | ||||
Beginning of year | 714,682,283 | 830,758,291 | ||||||
|
|
|
| |||||
End of year | $ | 588,887,871 | $ | 714,682,283 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
78 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights
(For a share outstanding throughout each period)
iShares Long-Term Corporate Bond ETF | ||||||||||||||||||||
Year Ended 02/28/19 | Year Ended 02/28/18 | Year Ended 02/28/17 | Year Ended 02/29/16 | Year Ended 02/28/15 | ||||||||||||||||
Net asset value, beginning of year | $ | 60.06 | $ | 59.77 | $ | 56.51 | $ | 62.53 | $ | 57.87 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 2.56 | 2.48 | 2.48 | 2.55 | 2.59 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | (2.31 | ) | 0.30 | 3.25 | (6.02 | ) | 4.59 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 0.25 | 2.78 | 5.73 | (3.47 | ) | 7.18 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (2.58 | ) | (2.49 | ) | (2.47 | ) | (2.55 | ) | (2.52 | ) | ||||||||||
From net realized gain | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (2.58 | ) | (2.49 | ) | (2.47 | ) | (2.55 | ) | (2.52 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 57.73 | $ | 60.06 | $ | 59.77 | $ | 56.51 | $ | 62.53 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 0.53 | % | 4.65 | % | 10.21 | % | (5.53 | )% | 12.64 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.11 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived | 0.10 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 4.44 | % | 4.05 | % | 4.10 | % | 4.40 | % | 4.28 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 588,888 | $ | 714,682 | $ | 830,758 | $ | 785,548 | $ | 850,376 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(d) | 24 | % | 12 | % | 10 | % | 11 | % | 23 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 79 |
Notes to Financial Statements
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following fund (the “Fund”):
iShares ETF | Diversification Classification | |
Long-Term Corporate Bond(a) | Diversified |
(a) | Formerly the iShares 10+ Year Credit Bond ETF. |
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities, andpayment-in-kind interest income, if any, are recognized daily on the accrual basis. Dividend income and capital gain distributions, if any, are recognized on theex-dividend date, net of any foreign taxes withheld at source.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by the Fund are recorded on theex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.
Recent Accounting Standards:In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization on Purchase Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Fund.
In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Fund.
Indemnifications:In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
InvestmentValuation Policies:The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:
• | Fixed-income investments are valued using the last available bid price or current market quotations provided by independent dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. |
80 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions.
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for the Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, or its affiliates and is disclosed in the schedule of investments. Anynon-cash collateral received cannot be sold,re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for the Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statement of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral.
NOTESTO FINANCIAL STATEMENTS | 81 |
Notes to Financial Statements (continued)
In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received(a) | Non-Cash Collateral Received | Net Amount | ||||||||||||
Long-Term Corporate Bond | ||||||||||||||||
Barclays Bank PLC | $ | 2,806,704 | $ | 2,806,704 | $ | — | $ | — | ||||||||
BNP Paribas Prime Brokerage International Ltd. | 421,439 | 421,439 | — | — | ||||||||||||
BNP Paribas Securities Corp. | 91,680 | 91,680 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 3,015,111 | 3,015,111 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 3,816,962 | 3,816,962 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 121,924 | 121,924 | — | — | ||||||||||||
Goldman Sachs & Co. | 6,689,509 | 6,689,509 | — | — | ||||||||||||
HSBC Securities (USA) Inc. | 769,944 | 769,944 | — | — | ||||||||||||
Jefferies LLC | 259,584 | 259,584 | — | — | ||||||||||||
JPMorgan Securities LLC | 9,263,813 | 9,263,813 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 302,310 | 302,310 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 3,759,863 | 3,759,863 | — | — | ||||||||||||
MUFG Securities Americas Inc. | 377,660 | 377,660 | — | — | ||||||||||||
Nomura Securities International Inc. | 621,192 | 621,192 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 1,193,624 | 1,193,624 | — | — | ||||||||||||
State Street Bank & Trust Company | 1,511,422 | 1,511,422 | — | — | ||||||||||||
UBS AG | 769,702 | 769,702 | — | — | ||||||||||||
Wells Fargo Securities LLC | 6,817,609 | 6,817,609 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 42,610,052 | $ | 42,610,052 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts:The Fund used futures contracts to mitigate or maintain duration risk as securities were purchased and sold during the Fund’s transition to a new underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
82 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Fund, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $121 billion | 0.0600 | % | ||
Over $121 billion, up to and including $181 billion | 0.0570 | |||
Over $181 billion, up to and including $231 billion | 0.0542 | |||
Over $231 billion, up to and including $281 billion | 0.0515 | |||
Over $281 billion | 0.0489 |
Each reduced 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 June 26, 2018, for its investment advisory services to the Fund, BFA was entitled to an annual investment advisory fee of 0.20%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Expense Waivers:The total of the investment advisory fee and any other fund expenses are a fund’s total annual operating expenses. Effective June 1, 2018, BFA contractually agreed to waive a portion of its investment advisory fee for the Fund through May 30, 2023 such that the Fund’s total annual operating expenses after fee waiver will not exceed 0.06% of average daily net assets. The contractual waiver for the Fund was terminated effective June 26, 2018, pursuant to a written agreement between the Trust and BFA and in conjunction with the permanent annual advisory fee reduction for the Fund from 0.20% to 0.06%.
Distributor: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.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in its statement of operations. For the year ended February 28, 2019, the Fund paid BTC $56,984 for securities lending agent services.
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule17a-7.
For the year ended February 28, 2019, transactions executed by the Fund pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
Long-Term Corporate Bond | $ | 173,888 | $ | 1,599,283 |
NOTESTO FINANCIAL STATEMENTS | 83 |
Notes to Financial Statements (continued)
The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the year ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
iShares ETF | Purchases | Sales | Purchases | Sales | ||||||||||||
Long-Term Corporate Bond | $ | 1,466,370 | $ | 1,523,962 | $ | 141,062,511 | $ | 137,570,887 |
For the year ended February 28, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Long-Term Corporate Bond | $ | 179,160,233 | $ | 281,081,061 |
8. | 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.
Management has analyzed tax laws and regulations and their application to the Fund as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of February 28, 2019, the following permanent differences attributable to realized gains (losses) fromin-kind redemptions, were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Loss | ||||||
Long-Term Corporate Bond | $ | (7,107,222 | ) | $ | 7,107,222 |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 02/28/19 | Year Ended 02/28/18 | ||||||
Long-Term Corporate Bond Ordinary income | $ | 26,801,451 | $ | 32,962,172 | ||||
|
|
|
|
As of February 28, 2019, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | | Undistributed Ordinary Income | | | Non-expiring Capital Loss Carryforwards(a) | | | Net Unrealized Gains (Losses)(b) | | Total | ||||||
Long-Term Corporate Bond | $ | 2,285,522 | $ | (18,291,069) | $ | (24,042,863) | $ | (40,048,410) |
(a) | Amounts available to offset future realized capital gains. |
(b) | The difference between book-basis andtax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales. |
84 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Long-Term Corporate Bond | $ | 646,266,283 | $ | 2,959,296 | $ | (27,004,797 | ) | $ | (24,045,501 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve the Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities ofnon-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their price more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of the Fund are not redeemable.
NOTESTO FINANCIAL STATEMENTS | 85 |
Notes to Financial Statements (continued)
Transactions in capital shares were as follows:
Year Ended 02/28/19 | Year Ended 02/28/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Long-Term Corporate Bond | ||||||||||||||||
Shares sold | 3,300,000 | $ | 190,580,512 | 2,300,000 | $ | 141,236,309 | ||||||||||
Shares redeemed | (5,000,000 | ) | (291,216,355 | ) | (4,300,000 | ) | (261,560,124 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (1,700,000 | ) | $ | (100,635,843 | ) | (2,000,000 | ) | $ | (120,323,815 | ) | ||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
12. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update and Simplification.The Fund has adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended February 28, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
Long-Term Corporate Bond | $ | 32,962,172 |
Undistributed net investment income as of February 28, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
Long-Term Corporate Bond | $ | 2,575,074 |
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
86 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of
iShares Trust and Shareholders of iShares Long-Term Corporate Bond ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of iShares Long-Term Corporate Bond ETF (one of the funds constituting iShares Trust, referred to hereafter as the “Fund”) as of February 28, 2019, the related statement of operations for the year ended February 28, 2019, the statement of changes in net assets for each of the two years in the period ended February 28, 2019, including the related notes, and the financial highlights for each of the five years in the period ended February 28, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of February 28, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended February 28, 2019 and the financial highlights for each of the five years in the period ended February 28, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 28, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
San Francisco, California
April 18, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 87 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Bloomberg Index Services Limited or ICE Data Indices, LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.
©2019 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-1018-1019
![]() | ![]() |
![]() | OCTOBER 31, 2019 |
2019 Annual Report |
iShares U.S. ETF Trust
· | iShares Interest Rate Hedged Emerging Markets Bond ETF | EMBH | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
Page | ||||
3 | ||||
4 | ||||
6 | ||||
6 | ||||
7 | ||||
Financial Statements | ||||
10 | ||||
11 | ||||
12 | ||||
13 | ||||
14 | ||||
19 | ||||
20 | ||||
21 | ||||
23 | ||||
24 | ||||
26 | ||||
27 | ||||
28 |
iShares U.S. ETF Trust
Global Bond Market Overview
Global investment-grade bonds advanced for the 12 months ended October 31, 2019 (“reporting period”). The Bloomberg Barclays Global Aggregate Index, a broad measure of global bond market performance, returned 9.54% in U.S. dollar terms for the reporting period.
The performance of global bonds was driven primarily by lower interest rates, as concerns about the global economy led central banks around the world to implement a series of interest rate reductions. Following a cycle of higher interest rates in 2018, slowing economic growth and the protracted trade dispute between the U.S. and China prompted central banks to adopt or signal more accommodative monetary policies beginning January 2019. Low inflation and weak economic indicators led investors to anticipate continued stimulative policies from the world’s central banks. Consequently, global bond yields (which are inversely related to prices) declined to their lowest level in 120 years, with more than $17 trillion in bonds worldwide offering a negative yield as of August 2019.
U.S. bond yields declined significantly as the delayed impact of higher interest rates early in the reporting period and the trade dispute between the U.S. and China weighed on economic growth, particularly in the manufacturing and industrial sectors. In response to deteriorating economic conditions, the U.S. Federal Reserve Bank (“Fed”) shifted to a more accommodative monetary policy starting in January 2019. After raising short-term interest rates in December 2018, the Fed reversed course and lowered them three times in 2019. Long-term bond yields declined more than short-term yields, reflecting lower inflation expectations and solid demand for the relative stability of U.S. Treasuries amid economic uncertainty. Consequently, the U.S. Treasury yield curve (a graphical representation of U.S. Treasury yields at different maturities) flattened before briefly inverting in August 2019, as10-year Treasury yields dipped belowtwo-year Treasury yields.
European bonds also posted strong returns in an environment of tepid economic growth and softening exports. The Eurozone’s slowing economy prompted the European Central Bank (“ECB”) to reinstate its monetary stimulus program and lower the interest rate on deposits made by commercial banks. The ECB also signaled its willingness to decrease its headline short-term interest rate in the future, which further helped Eurozone bond yields. Investors generally viewed the nomination of a new president of the ECB late in the reporting period as a positive development, anticipating that she would continue policies that promote low interest rates and monetary stimulus. As yields for many government bonds turned negative, investors seeking higher returns moved toward debt issued by countries that are considered higher risk. Italian bonds in particular benefited from a shift toward higher-yielding debt, despite the fact that the country dipped into recession briefly in 2019 before returning to growth. U.K. bond yields also declined, as uncertainty surrounding Brexit prompted investors to move away from equities, which are generally more exposed to trade risk.
A slowing Chinese economy and the trade dispute between the U.S. and China helped the performance of bonds in the Asia/Pacific region, as concerns about a possible economic downturn prompted investors to move into bonds. Japanese bond prices increased due to strong demand from both domestic and foreign investors, while South Korean bonds benefited from the country’s high credit rating and trade surplus, which investors viewed as signs of stability. Emerging market bonds also posted solid returns, driven by investors’ demand for yield as an increasing number of developed-market bonds offered negative interest rates.
MARKET OVERVIEW | 3 |
Fund Summary as of October 31, 2019 | iShares® Interest Rate Hedged Emerging Markets Bond ETF |
Investment Objective
TheiShares Interest Rate Hedged Emerging Markets Bond ETF (the “Fund”) seeks to mitigate the interest rate risk of a portfolio composed of U.S. dollar-denominated, emerging market bonds. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares J.P. Morgan USD Emerging Markets Bond ETF. The Fund attempts to mitigate the interest rate risk of the underlying fund by holding short positions in U.S. Treasury futures or interest rate swaps.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||
1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||
Fund NAV | 1.72 | % | 3.59 | % | 1.72 | % | 16.29 | % | ||||||||||
Fund Market | 1.88 | 3.62 | 1.88 | 16.43 | ||||||||||||||
J.P. Morgan EMBI Global Core Swap Hedged Index | 2.00 | 4.04 | 2.00 | 18.45 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 7/22/15. The first day of secondary market trading was 7/23/15.
The J.P. Morgan EMBI Global Core Swap Hedged Index is an unmanaged index that consists of the J.P. Morgan EMBI® Global Core Index plus interest rate swaps that intend to hedge the interest rate exposure of the J.P. Morgan EMBI® Global Core Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 6 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) | | | Ending Account Value | | | Expenses Paid During the Period |
(a)(b) | | Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a)(b) | | Annualized Expense Ratio |
(a) | ||||||||||
$ 1,000.00 | $ 989.20 | $ 0.50 | $ 1,000.00 | $ 1,024.70 | $ 0.51 | 0.10 | % |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
(b) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 6 for more information. |
4 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Interest Rate Hedged Emerging Markets Bond ETF |
Portfolio Management Commentary
The Fund posted a positive return for the reporting period despite the substantial negative impact of the interest rate hedge. Demand for U.S. dollar-denominated emerging market debt strengthened, as low yields in developed countries sent investors in search of higher yields in emerging markets. Similarly, interest rate reductions by the Fed drove capital flows to emerging markets and provided room for emerging market central banks to lower interest rates.
On an unhedged basis, Latin American bonds contributed the most to the Fund’s return for the reporting period. Central bank rate reductions and the restructuring of debt and financial commitments from the government in thestate-run energy sector aided Mexican high-yield bonds. Bond yields in Mexico declined with inflation, which led to solid performance for Mexican bonds despite ongoing credit concerns in the energy sector. Brazilian bonds benefited from the central bank reducing interest rates to record lows, while Colombian bonds advanced as the central bank kept interest rates low and credit conditions improved.
European bonds also contributed to the Fund’s return, led by Russia, where revenues from thestate-run energy sector increased cash reserves and drove down bond yields. Ukrainian bonds also advanced, helped by optimism about new political leadership.
Declining interest rates during the reporting period meant significantly negative returns from hedging activity, which was the largest detractor from the Fund’s return. Typically, increasing interest rates reduce the price of existing bonds, meaning a rise in interest rates detracts from bond fund performance. Conversely, falling interest rates usually serve to increase bond prices. An interest rate hedged fund attempts to avoid these fluctuations by offsetting interest rate risk, primarily using interest rate swaps and Treasury futures contracts.
The Fund’s interest rate hedge seeks near-zero interest rate sensitivity. Consequently, the Fund’s return was minimally affected by interest rate fluctuations during the reporting period. With interest rate sensitivity hedged, the Fund fluctuated based on direct exposure to the yield premium of emerging market bonds, independent of falling interest rates.
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Aa | 5.9 | % | ||
A | 17.9 | |||
Baa | 32.6 | |||
Ba | 12.1 | |||
B | 20.9 | |||
Caa | 5.1 | |||
C | 0.1 | |||
Not Rated | 5.4 |
TEN LARGEST COUNTRIES
Country | | Percent of Total Investments | (a) | |
Mexico | 5.5 | % | ||
Indonesia | 4.8 | |||
Saudi Arabia | 4.6 | |||
Russia | 3.9 | |||
Qatar | 3.8 | |||
Turkey | 3.8 | |||
Philippines | 3.6 | |||
China | 3.4 | |||
Brazil | 3.4 | |||
Colombia | 3.3 |
* | 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. |
(a) | Excludes money market funds. |
FUND SUMMARY | 5 |
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recentmonth-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
6 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
October 31, 2019 | iShares® Interest Rate Hedged Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 95.8% | ||||||||
iShares J.P. Morgan USD Emerging Markets Bond ETF(a) | 61,823 | $ | 7,023,093 | |||||
|
| |||||||
Total Investment Companies — 95.8% | 7,023,093 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.2% | ||||||||
BlackRock Cash Funds: Treasury, | 89,000 | 89,000 | ||||||
|
| |||||||
Total Short-Term Investments — 1.2% |
| 89,000 | ||||||
|
| |||||||
Total Investments in Securities — 97.0% |
| 7,112,093 | ||||||
Other Assets, Less Liabilities — 3.0% | 221,349 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 7,333,442 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 10/31/19 | | | Value at 10/31/19 |
| Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | 0 | (b) | — | $ | — | $ | 1,748 | (c) | $ | 323 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 159,121 | — | (70,121 | )(b) | 89,000 | 89,000 | 3,056 | — | — | |||||||||||||||||||||||
iShares J.P. Morgan USD Emerging Markets Bond ETF | 127,721 | 14,325 | (80,223 | ) | 61,823 | 7,023,093 | 662,042 | 232,085 | 795,376 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 7,112,093 | $ | 666,846 | $ | 232,408 | $ | 795,376 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
Centrally Cleared Interest Rate Swaps
| ||||||||||||||||||||||||||||||||
Paid by the Fund | Received by the Fund |
| Effective | Termination | Notional Amount |
| Upfront Premium Paid | Unrealized Appreciation | ||||||||||||||||||||||||
Rate | Frequency | Rate(a) | Frequency | Date | Date | (000) | Value | (Received) | (Depreciation) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
1.17% | Semi-annual | 1.90% | Quarterly | N/A | 12/08/21 | $(1,841) | $ | 14,790 | $ | 65,665 | $ | (50,875 | ) | |||||||||||||||||||
2.38 | Semi-annual | 1.90 | Quarterly | N/A | 01/12/23 | (126) | (3,455 | ) | (3,634 | ) | 179 | |||||||||||||||||||||
2.46 | Semi-annual | 1.90 | Quarterly | N/A | 01/13/25 | (1,695) | (82,610 | ) | 35,673 | (118,283 | ) | |||||||||||||||||||||
1.44 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/26 | (487) | 2,874 | 29,969 | (27,095 | ) | ||||||||||||||||||||||
3.25 | Semi-annual | 1.90 | Quarterly | N/A | 10/18/28 | (1,155) | (162,670 | ) | (39,272 | ) | (123,398 | ) | ||||||||||||||||||||
2.34 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/36 | (473) | (42,962 | ) | 42,574 | (85,536 | ) | |||||||||||||||||||||
2.41 | Semi-annual | 1.90 | Quarterly | N/A | 06/19/37 | (365) | (37,769 | ) | 4,271 | (42,040 | ) | |||||||||||||||||||||
1.77 | Semi-annual | 1.90 | Quarterly | N/A | 12/08/46 | (365) | 1,759 | 95,972 | (94,213 | ) | ||||||||||||||||||||||
3.33 | Semi-annual | 1.90 | Quarterly | N/A | 10/26/48 | (292) | (105,228 | ) | (53,516 | ) | (51,712 | ) | ||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (415,271 | ) | $ | 177,702 | $ | (592,973 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
(a) | Represents3-month LIBOR. Rate shown is the rate in effect as ofperiod-end. |
SCHEDULE OF INVESTMENTS | 7 |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged Emerging Markets Bond ETF |
Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps
| ||||||||||||||||
Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
| ||||||||||||||||
Centrally Cleared Swaps(a) | $274,124 | $(96,422 | ) | $179 | $(593,152) | |||||||||||
|
(a) | Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts. |
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Interest Rate Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Swaps — centrally cleared | ||||
Unrealized appreciation on centrally cleared swaps(a) | $ | 179 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Swaps — centrally cleared | ||||
Unrealized depreciation on centrally cleared swaps(a) | $ | 593,152 | ||
|
|
(a) | Net cumulative appreciation (depreciation) on centrally cleared interest rate swaps contracts are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Interest Rate Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Swaps | $ | (470,407 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Swaps | $ | (900,995 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Interest rate swaps: | ||||
Average notional value — pays fixed rate | $ | 11,239,330 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
8 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® Interest Rate Hedged Emerging Markets Bond ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment Companies | $ | 7,023,093 | $ | — | $ | — | $ | 7,023,093 | ||||||||
Money Market Funds | 89,000 | — | — | 89,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 7,112,093 | $ | — | $ | — | $ | 7,112,093 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Swaps | $ | — | $ | 179 | $ | — | $ | 179 | ||||||||
Liabilities | ||||||||||||||||
Swaps | — | (593,152 | ) | — | (593,152 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | (592,973 | ) | $ | — | $ | (592,973 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 9 |
Statement of Assets and Liabilities
October 31, 2019
iShares Interest Rate Hedged Emerging Markets Bond ETF | ||||
| ||||
ASSETS | ||||
Investments in securities, at value: | ||||
Affiliated(a) | $ | 7,112,093 | ||
Cash | 3,853 | |||
Cash pledged: | ||||
Centrally cleared swaps | 282,000 | |||
Receivables: | ||||
Investments sold | 346 | |||
Securities lending income — Affiliated | 561 | |||
Dividends | 208 | |||
|
| |||
Total assets | 7,399,061 | |||
|
| |||
LIABILITIES | ||||
Payables: | ||||
Variation margin on centrally cleared swaps | 64,997 | |||
Investment advisory fees | 622 | |||
|
| |||
Total liabilities | 65,619 | |||
|
| |||
NET ASSETS | $ | 7,333,442 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 8,213,543 | ||
Accumulated loss | (880,101 | ) | ||
|
| |||
NET ASSETS | $ | 7,333,442 | ||
|
| |||
Shares outstanding | 300,000 | |||
|
| |||
Net asset value | $ | 24.44 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Investments, at cost — Affiliated | $ | 6,903,419 |
See notes to financial statements.
10 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Year Ended October 31, 2019
iShares Interest Rate Hedged Emerging Markets Bond ETF | ||||
| ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 665,098 | ||
Securities lending income — Affiliated — net | 1,748 | |||
|
| |||
Total investment income | 666,846 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 86,154 | |||
|
| |||
Total expenses | 86,154 | |||
Less: | ||||
Investment advisory fees waived | (74,667 | ) | ||
|
| |||
Total expenses after fees waived | 11,487 | |||
|
| |||
Net investment income | 655,359 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Affiliated | (99,720 | ) | ||
In-kind redemptions — Affiliated | 332,128 | |||
Swaps | (470,407 | ) | ||
|
| |||
Net realized loss | (237,999 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Affiliated | 795,376 | |||
Swaps | (900,995 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) | (105,619 | ) | ||
|
| |||
Net realized and unrealized loss | (343,618 | ) | ||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 311,741 | ||
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 11 |
Statements of Changes in Net Assets
iShares Interest Rate Hedged Emerging Markets Bond ETF | ||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||
| ||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 655,359 | $ | 214,797 | ||||
Net realized gain (loss) | (237,999 | ) | 6,418 | |||||
Net change in unrealized appreciation (depreciation) | (105,619 | ) | (389,122 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 311,741 | (167,907 | ) | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (631,997 | ) | (205,131 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from capital share transactions | (6,248,772 | ) | 11,631,104 | |||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase (decrease) in net assets | (6,569,028 | ) | 11,258,066 | |||||
Beginning of year | 13,902,470 | 2,644,404 | ||||||
|
|
|
| |||||
End of year | $ | 7,333,442 | $ | 13,902,470 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
12 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
(For a share outstanding throughout each period)
iShares Interest Rate Hedged Emerging Markets Bond ETF | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Period From |
| |||||||||||||||||||||||||||||
Year Ended |
| Year Ended |
| Year Ended |
| Year Ended |
| 07/22/15 | (a) | |||||||||||||||||||||
10/31/19 |
| 10/31/18 |
| 10/31/17 |
| 10/31/16 |
| to 10/31/15 |
| |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 25.28 | $ | 26.44 | $ | 25.06 | $ | 24.20 | $ | 25.05 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net investment income(b) | 1.42 | 1.06 | 1.11 | 1.17 | 0.33 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (1.00 | ) | (1.19 | ) | 1.24 | 0.61 | (0.95 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net increase (decrease) from investment operations | 0.42 | (0.13 | ) | 2.35 | 1.78 | (0.62 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Distributions(d) | ||||||||||||||||||||||||||||||
From net investment income | (1.26 | ) | (1.03 | ) | (0.97 | ) | (0.89 | ) | (0.23 | ) | ||||||||||||||||||||
Return of capital | — | — | — | (0.03 | ) | (0.00 | )(e) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total distributions | (1.26 | ) | (1.03 | ) | (0.97 | ) | (0.92 | ) | (0.23 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net asset value, end of period | $ | 24.44 | $ | 25.28 | $ | 26.44 | $ | 25.06 | $ | 24.20 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||
Based on net asset value | 1.72 | % | (0.51 | )% | 9.57 | % | 7.49 | % | (2.43 | )%(f) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Total expenses(g) | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | %(h) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total expenses after fees waived(g) | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.12 | %(h) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Net investment income | 5.71 | % | 4.07 | % | 4.32 | % | 4.82 | % | 4.86 | %(h) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 7,333 | $ | 13,902 | $ | 2,644 | $ | 2,506 | $ | 2,420 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Portfolio turnover rate(i)(j) | 3 | % | 0 | %(k) | 2 | % | 3 | % | 0 | %(f) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Rounds to less than $0.01. |
(f) | Not annualized. |
(g) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(h) | Annualized. |
(i) | Portfolio turnover rate excludesin-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(k) | Rounds to less than 1%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 13 |
1. | ORGANIZATION |
iShares U.S. ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following fund (the “Fund”):
iShares ETF | Diversification Classification | |||
Interest Rate Hedged Emerging Markets Bond | Diversified |
Currently the Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedule of investments for the underlying fund should be read in conjunction with the Fund’s financial statements.
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions from the underlying funds, if any, are recognized on theex-dividend date. Interest income is accrued daily.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by the Fund are recorded on theex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.
Indemnifications:In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:
• | Exchange-traded funds andclosed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
14 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for the Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of October 31, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, or its affiliates and is disclosed in the schedule of investments. Anynon-cash collateral received cannot be sold,re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for the Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of October 31, 2019 and the value of the related cash collateral are disclosed in the statement of assets and liabilities.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Swaps:Swaps are financial agreements to exchange cash flows in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Interest rate swaps are used by the Fund to mitigate the potential impact of interest rates on the performance of the bonds held by the Fund or its underlying fund.
Swap agreements are privately negotiated in theover-the-counter market and may be entered into as a bilateral contract or centrally cleared (“centrally cleared swaps”). The Fund enters into centrally cleared swaps.
In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (“CCP”) and the CCP becomes the Fund’s counterparty on the swap. The Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the schedule of investments and cash deposited is shown as cash pledged for centrally cleared swaps on the statement of assets and liabilities. The daily change in valuation of centrally cleared swaps is recorded as variation margin receivable or payable on centrally cleared swaps in the statement of assets and liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the statement of operations. Payments received from (paid to) the counterparty are amortized over the term of the contract as a realized gain (loss) in the statement of operations.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
NOTESTO FINANCIAL STATEMENTS | 15 |
Notes to Financial Statements (continued)
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Fund, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee of 0.75%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Expense Waivers:A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses is a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through February 28, 2022 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares J.P. Morgan USD Emerging Markets Bond ETF (“EMB”), after taking into account any fee waivers by EMB, plus 0.10%.
Distributor: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.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold, the Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in its statement of operations. For the year ended October 31, 2019, the Fund paid BTC $634 for securities lending agent services.
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
7. | PURCHASES AND SALES |
For the year ended October 31, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Interest Rate Hedged Emerging Markets Bond | $ | 316,519 | $ | 1,652,383 |
For the year ended October 31, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Interest Rate Hedged Emerging Markets Bond | $ | 1,184,732 | $ | 7,220,516 |
16 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
8. | 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.
Management has analyzed tax laws and regulations and their application to the Fund as of October 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2019, the following permanent differences attributable to realized gains (losses) fromin-kind redemptions, were reclassified to the following accounts:
| ||||||||
iShares ETF | Paid-in Capital | Accumulated Loss | ||||||
| ||||||||
Interest Rate Hedged Emerging Markets Bond | $ | 272,285 | $ | (272,285) | ||||
|
The tax character of distributions paid was as follows:
| ||||||||
iShares ETF | Year Ended 10/31/19 | Year Ended 10/31/18 | ||||||
| ||||||||
Interest Rate Hedged Emerging Markets Bond | ||||||||
Ordinary income | $ | 631,997 | $ | 205,131 | ||||
|
|
|
|
As of October 31, 2019, the tax components of accumulated net earnings (losses) were as follows:
| ||||||||||||
iShares ETF | | Non-expiring Capital Loss Carryforwards | (a) | | Net Unrealized Gains (Losses) | (b) | Total | |||||
| ||||||||||||
Interest Rate Hedged Emerging Markets Bond | $ (493,536 | ) | $ (386,565 | ) | $ | (880,101) | ||||||
|
(a) | Amounts available to offset future realized capital gains. |
(b) | The difference between book-basis andtax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales. |
As of October 31, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
| ||||||||||||||||
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation | ||||||||||||
| ||||||||||||||||
Interest Rate Hedged Emerging Markets Bond | $ | 6,905,685 | $ | 206,408 | $ | (592,973 | ) | $ | (386,565) | |||||||
|
9. | PRINCIPAL RISKS |
In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
NOTESTO FINANCIAL STATEMENTS | 17 |
Notes to Financial Statements (continued)
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of the Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||||||||||
|
|
|
| |||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
Interest Rate Hedged Emerging Markets Bond | ||||||||||||||||
Shares sold | 50,000 | $ | 1,228,056 | 450,000 | $ | 11,631,104 | ||||||||||
Shares redeemed | (300,000 | ) | (7,476,828 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (250,000 | ) | $ | (6,248,772 | ) | 450,000 | $ | 11,631,104 | ||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision. The appeal was fully briefed on January 18, 2019, and a hearing on Plaintiffs’ appeal took place on November 19, 2019.
12. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
18 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of iShares U.S. ETF Trust and
Shareholders of iShares Interest Rate Hedged Emerging Markets Bond ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of iShares Interest Rate Hedged Emerging Markets Bond ETF (one of the funds constituting iShares U.S. ETF Trust, referred to hereafter as the “Fund”) as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019, including the related notes, and the financial highlights for each of the four years in the period ended October 31, 2019 and for the period July 22, 2015 (commencement of operations) to October 31, 2015 (hereafter referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2019 and the financial highlights for each of the four years in the period ended October 31, 2019 and for the period July 22, 2015 (commencement of operations) to October 31, 2015 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 19 |
Important Tax Information (unaudited)
For the fiscal year ended October 31, 2019, the Fund intends to pass through to its shareholders foreign source income earned and foreign taxes paid by the underlying funds:
iShares ETF | Foreign Source Income Earned | |||
Interest Rate Hedged Emerging Markets Bond | $ | 595,130 |
For the fiscal year ended October 31, 2019, the Fund hereby designates the following maximum amount allowable as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations:
iShares ETF | Interest-Related Dividends | |||
Interest Rate Hedged Emerging Markets Bond | $ | 2,410 |
The Fund hereby designates the following amount of distributions from direct federal obligation interest for the fiscal year ended October 31, 2019:
iShares ETF | Federal Obligation Interest | |||
Interest Rate Hedged Emerging Markets Bond | $ | 1,544 |
The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
20 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
I. iShares Interest Rate Hedged Emerging Markets Bond ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, 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 and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Fund:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.
The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with expectations relative to the Fund’s reference benchmark.
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 capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the 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, which were provided at the June17-19, 2019 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 21 |
Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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 and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with a similar investment strategy or investment mandate as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the 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 ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
22 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year | % 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 Emerging Markets Bond(a) | $ | 1.231279 | $ | — | $ | 0.030216 | $ | 1.261495 | 98 | % | — | % | 2 | % | 100 | % |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Premium/Discount Information
The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest ask on the primary securities exchange on which shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the value of its portfolio holdings. The Market Price of a 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 the 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.
Premium/discount information for the Fund covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at iShares.com.
The following information shows the frequency of distributions of premiums and discounts for the Fund for the immediately preceding five calendar years (or from the date the Fund began trading on the secondary market, if less than five years) through the date of the most recent calendarquarter-end. Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.
iShares Interest Rate Hedged Emerging Markets Bond ETF
Period Covered: July 23, 2015 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||
Greater than 2.5% and Less than 3.0% | 1 | 0.09 | % | |||||
Greater than 1.0% and Less than 1.5% | 3 | 0.28 | ||||||
Greater than 0.5% and Less than 1.0% | 13 | 1.23 | ||||||
Greater than 0.0% and Less than 0.5% | 432 | 41.00 | ||||||
At NAV | 32 | 3.04 | ||||||
Less than 0.0% and Greater than –0.5% | 571 | 54.18 | ||||||
Less than –0.5% and Greater than –1.0% | 1 | 0.09 | ||||||
Less than –1.5% and Greater than –2.0% | 1 | 0.09 | ||||||
|
|
|
| |||||
1,054 | 100.00 | % | ||||||
|
|
|
|
SUPPLEMENTAL INFORMATION | 23 |
Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. 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 (the “BlackRock-advised Funds”) are organized into one complex ofopen-end equity, multi-asset, index and money market funds (the “BlackRock Multi-Asset Complex”), one complex ofclosed-end funds andopen-endnon-index fixed-income funds (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares Trust, and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 352 funds as of October 31, 2019. With the exception of Robert S. Kapito, Salim Ramji, Charles Park and Neal J. Andrews, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji, Mr. Park and Mr. Andrews is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free1-800-iShares(1-800-474-2737).
Interested Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Robert S. Kapito(a) (62) | Trustee (since 2011). | President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (49) | Trustee (since 2019). | Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Director of iShares, Inc. (since 2019); Trustee of iShares Trust (since 2019). | |||
(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. | ||||||
(b) Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. | ||||||
Independent Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Cecilia H. Herbert (70) | Trustee (since 2011); Independent Board Chair (since 2016). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Technology and Quality Committees of Stanford Health Care (since 2016); Member of the Audit Committee (since 2018) and Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); 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. | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (63) | Trustee (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Director of iShares, Inc. (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016) and Director of The Hanover Insurance Group, Inc. (since (2016). | |||
Richard L. Fagnani (64) | Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). |
24 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information (continued)
Independent Trustees(continued) | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
John E. Kerrigan (64) | Trustee (since 2011); Nominating and Governance and Equity Plus Committee Chairs (since 2019). | Chief Investment Officer, Santa Clara University (since 2002). | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005). | |||
Drew E. Lawton (60) | Trustee (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). | |||
John E. Martinez (58) | Trustee (since 2011); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005). | Director of iShares, Inc. (since 2003); Trustee of iShares Trust (since 2003); Director of Cloudera Foundation (since 2017); Director of Reading Partners (2012-2016). | |||
Madhav V. Rajan (55) | Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Director of iShares, Inc. (since 2011); Trustee of iShares Trust (since 2011). | |||
Officers | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | ||||
Armando Senra (48) | President (since 2019). | Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and LATAM iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006). | ||||
Neal J. Andrews (53) | Treasurer and Chief Financial Officer (since 2019). | Managing Director, BlackRock, Inc. (since 2006); Chief Financial Officer of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2007). | ||||
Charles Park (52) | Chief Compliance Officer (since 2011). | Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||||
Deepa Damre (44) | Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||||
Scott Radell (50) | Executive Vice President (since 2012). | Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||||
Alan Mason (58) | Executive Vice President (since 2016). | Managing Director, BlackRock, Inc. (since 2009). | ||||
Marybeth Leithead (56) | Executive Vice President (since 2019). | Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016). |
TRUSTEEAND OFFICER INFORMATION | 25 |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The iShares Fund’s FormsN-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
26 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Fixed Income | ||
LIBOR | London Interbank Offered Rate |
GLOSSARYOF TERMS USEDINTHIS REPORT | 27 |
Additional Financial Information
Audited Financial Statements
October 31, 2019
iShares Trust
iShares J.P. Morgan USD Emerging Markets Bond ETF | EMB | NASDAQ
Schedule of Investments October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes(a) | ||||||||
Azerbaijan — 0.4% | ||||||||
Southern Gas Corridor CJSC, 6.88%, 03/24/26(b) | $ | 51,115 | $ | 59,548,975 | ||||
|
| |||||||
Bahrain — 0.2% | ||||||||
Oil and Gas Holding Co. BSCC (The), 7.50%, 10/25/27(b) | 23,600 | 26,365,625 | ||||||
|
| |||||||
Chile — 1.2% | ||||||||
Corp. Nacional del Cobre de Chile | ||||||||
3.00%, 09/30/29 (Call 06/30/29)(c) | 24,900 | 24,797,270 | ||||||
3.63%, 08/01/27 (Call 05/01/27)(b) | 38,425 | 40,358,258 | ||||||
4.38%, (Call 08/05/48)(b)(d) | 31,500 | 34,777,968 | ||||||
4.38%, 02/05/49 (Call 08/05/48)(b) | 1,100 | 1,214,469 | ||||||
4.50%, 09/16/25(b) | 27,930 | 30,583,350 | ||||||
4.50%, 08/01/47 (Call 02/01/47)(b) | 31,990 | 35,828,800 | ||||||
|
| |||||||
167,560,115 | ||||||||
China — 2.7% | ||||||||
Amber Circle Funding Ltd., | 12,389 | 12,667,752 | ||||||
China Development Bank, | 18,593 | 18,732,447 | ||||||
China Development Bank Corp./Hong Kong, 2.81%, 03/06/22, (3 mo. LIBOR US + 0.700%)(b)(e) | 19,290 | 19,336,296 | ||||||
China Minmetals Corp., 3.75%, | 14,029 | 14,099,145 | ||||||
CNAC HK Finbridge Co. Ltd. | ||||||||
3.50%, 07/19/22(b) | 20,526 | 20,878,791 | ||||||
4.13%, 07/19/27(b) | 13,032 | 13,732,470 | ||||||
4.63%, 03/14/23(b) | 14,587 | 15,334,584 | ||||||
5.13%, 03/14/28(b) | 22,170 | 24,844,256 | ||||||
CNOOC Curtis Funding No. 1 Pty Ltd., 4.50%, 10/03/23(b) | 16,844 | 18,080,981 | ||||||
Sinopec Group Overseas Development 2012 Ltd. | ||||||||
3.90%, 05/17/22(b) | 16,181 | 16,802,957 | ||||||
4.88%, 05/17/42(b) | 11,833 | 14,628,546 | ||||||
Sinopec Group Overseas Development 2013 Ltd., 4.38%, 10/17/23(b) | 19,173 | 20,519,225 | ||||||
Sinopec Group Overseas Development 2014 Ltd., 4.38%, 04/10/24(b) | 18,109 | 19,523,766 | ||||||
Sinopec Group Overseas Development 2015 Ltd., 3.25%, 04/28/25(b) | 19,915 | 20,559,051 | ||||||
Sinopec Group Overseas Development 2017 Ltd. |
| |||||||
2.50%, 09/13/22(b) | 17,926 | 17,982,019 | ||||||
3.00%, 04/12/22(b) | 13,752 | 13,923,900 | ||||||
3.63%, 04/12/27(b) | 12,207 | 12,818,820 | ||||||
State Grid Overseas Investment 2013 Ltd., 3.13%, 05/22/23(b) | 12,947 | 13,262,583 | ||||||
State Grid Overseas Investment 2014 Ltd., 4.13%, 05/07/24(b) | 20,095 | 21,564,447 | ||||||
State Grid Overseas Investment 2016 Ltd. | ||||||||
2.75%, 05/04/22(b) | 16,624 | 16,831,800 | ||||||
3.50%, 05/04/27(b) | 29,032 | 30,595,664 | ||||||
Three Gorges Finance I Cayman Islands Ltd., 3.15%, 06/02/26(b) | 12,779 | 13,134,416 | ||||||
|
| |||||||
389,853,916 | ||||||||
Indonesia — 1.1% | ||||||||
Indonesia Asahan Aluminium Persero PT | ||||||||
5.71%, 11/15/23(b) | 12,867 | 14,153,700 | ||||||
6.53%, 11/15/28(b) | 7,742 | 9,377,498 | ||||||
Pelabuhan Indonesia II PT, 4.25%, 05/05/25(b) | 9,977 | 10,569,384 | ||||||
Pertamina Persero PT | ||||||||
4.30%, 05/20/23(b) | 11,681 | 12,338,056 | ||||||
4.88%, 05/03/22(b) | 13,404 | 14,183,108 |
Security | Par (000) | Value | ||||||
Indonesia (continued) | ||||||||
5.63%, 05/20/43(b) | $ | 13,251 | $ | 15,292,482 | ||||
6.00%, 05/03/42(b) | 9,847 | 11,844,095 | ||||||
6.45%, 05/30/44(b) | 14,299 | 18,271,441 | ||||||
Perusahaan Listrik Negara PT | ||||||||
4.13%, 05/15/27(b) | 14,203 | 14,895,396 | ||||||
5.25%, 10/24/42(b) | 9,114 | 10,076,666 | ||||||
5.45%, 05/21/28(b) | 8,093 | 9,276,601 | ||||||
6.15%, 05/21/48(b) | 9,271 | 11,646,521 | ||||||
|
| |||||||
151,924,948 | ||||||||
Kazakhstan — 1.5% | ||||||||
Development Bank of Kazakhstan JSC, | 29,180 | 30,245,070 | ||||||
Kazakhstan Temir Zholy Finance BV, | 28,064 | 37,709,246 | ||||||
KazMunayGas National Co. JSC | ||||||||
4.75%, 04/19/27(b) | 26,319 | 28,704,654 | ||||||
5.38%, 04/24/30(b) | 32,406 | 37,378,296 | ||||||
5.75%, 04/19/47(b) | 31,940 | 37,258,010 | ||||||
6.38%, 10/24/48(b) | 38,006 | 47,863,806 | ||||||
|
| |||||||
219,159,082 | ||||||||
Malaysia — 0.8% | ||||||||
Petronas Capital Ltd. | ||||||||
3.50%, 03/18/25(b) | 39,730 | 41,865,487 | ||||||
4.50%, 03/18/45(b) | 37,948 | 46,179,870 | ||||||
7.88%, 05/22/22(b) | 26,360 | 29,959,788 | ||||||
|
| |||||||
118,005,145 | ||||||||
Mexico — 2.9% | ||||||||
Banco Nacional de Comercio Exterior SNC/Cayman Islands, 4.38%, 10/14/25(b) | 7,443 | 7,877,950 | ||||||
Comision Federal de Electricidad | ||||||||
4.75%, 02/23/27(b) | 6,704 | 7,053,865 | ||||||
4.88%, 01/15/24(b) | 10,701 | 11,430,005 | ||||||
Mexico City Airport Trust, 5.50%, 07/31/47 (Call 01/31/47)(b) | 15,085 | 15,110,645 | ||||||
Petroleos Mexicanos | ||||||||
3.50%, 01/30/23 | 10,691 | 10,744,455 | ||||||
4.50%, 01/23/26 | 11,311 | 11,152,646 | ||||||
4.63%, 09/21/23 | 10,805 | 11,302,030 | ||||||
4.88%, 01/18/24 | 11,635 | 12,184,754 | ||||||
5.35%, 02/12/28 | 19,135 | 18,895,812 | ||||||
5.50%, 06/27/44 | 10,400 | 9,318,400 | ||||||
5.63%, 01/23/46 | 14,926 | 13,378,920 | ||||||
6.35%, 02/12/48 | 25,769 | 24,657,712 | ||||||
6.38%, 01/23/45 | 23,050 | 22,399,990 | ||||||
6.49%, 01/23/27 (Call 11/23/26)(c) | 9,030 | 9,621,465 | ||||||
6.50%, 03/13/27 | 42,734 | 45,318,074 | ||||||
6.50%, 01/23/29 | 16,491 | 17,200,113 | ||||||
6.50%, 06/02/41 | 22,351 | 22,127,490 | ||||||
6.63%, 06/15/35 | 21,511 | 21,923,151 | ||||||
6.75%, 09/21/47 | 45,908 | 45,694,243 | ||||||
6.84%, 01/23/30 (Call 10/23/29)(c) | 20,895 | 22,279,294 | ||||||
6.88%, 08/04/26 | 21,756 | 23,801,064 | ||||||
7.69%, 01/23/50 (Call 07/23/49)(c) | 36,495 | 39,589,776 | ||||||
|
| |||||||
423,061,854 | ||||||||
Oman — 0.1% | ||||||||
Lamar Funding Ltd., 3.96%, 05/07/25(b) | 19,900 | 18,581,625 | ||||||
|
|
SCHEDULE OF INVESTMENTS |
Schedule of Investments (continued) October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Peru — 0.4% | ||||||||
Petroleos del Peru SA | ||||||||
4.75%, 06/19/32(b) | $ | 25,469 | $ | 27,272,048 | ||||
5.63%, 06/19/47(b) | 25,540 | 29,682,907 | ||||||
|
| |||||||
56,954,955 | ||||||||
Philippines — 0.2% | ||||||||
Power Sector Assets & Liabilities Management Corp., 7.39%, 12/02/24(b) | 20,645 | 25,709,477 | ||||||
|
| |||||||
Russia — 0.3% | ||||||||
Vnesheconombank Via VEB Finance PLC 5.94%, 11/21/23(b) | 12,200 | 13,404,750 | ||||||
6.03%, 07/05/22(b) | 11,400 | 12,315,562 | ||||||
6.80%, 11/22/25(b) | 13,200 | 15,328,500 | ||||||
|
| |||||||
41,048,812 | ||||||||
Saudi Arabia — 0.8% | ||||||||
Saudi Arabian Oil Co. | 11,200 | 11,333,840 | ||||||
2.88%, 04/16/24(b) | 12,100 | 12,266,375 | ||||||
3.50%, 04/16/29(b) | 27,770 | 28,737,612 | ||||||
4.25%, 04/16/39(b) | 21,595 | 23,123,278 | ||||||
4.38%, 04/16/49(b) | 30,000 | 32,625,000 | ||||||
|
| |||||||
108,086,105 | ||||||||
South Africa — 0.5% | ||||||||
Eskom Holdings SOC Ltd. | 20,254 | 21,475,569 | ||||||
6.75%, 08/06/23(b) | 15,519 | 16,003,969 | ||||||
7.13%, 02/11/25(b) | 20,308 | 20,891,855 | ||||||
Transnet SOC Ltd., 4.00%, 07/26/22(b) | 19,656 | 19,877,130 | ||||||
|
| |||||||
78,248,523 | ||||||||
United Arab Emirates — 0.4% | ||||||||
Abu Dhabi Crude Oil Pipeline LLC, | 43,739 | 50,627,892 | ||||||
MDGH — GMTN BV | 3,425 | 3,411,300 | ||||||
2.88%, 11/07/29 (Call 08/07/29)(c) | 4,600 | 4,558,600 | ||||||
3.70%, 11/07/49 (Call 05/07/49)(c) | 3,850 | 3,864,438 | ||||||
|
| |||||||
62,462,230 | ||||||||
Venezuela — 0.1% | ||||||||
Petroleos de Venezuela SA | 24,185 | 1,481,331 | ||||||
5.50%, 04/12/37(b)(g) | 22,444 | 1,374,707 | ||||||
6.00%, 05/16/24(b)(g) | 64,888 | 3,974,353 | ||||||
6.00%, 11/15/26(b)(g) | 46,651 | 2,857,335 | ||||||
9.00%, 11/17/21(b)(g) | 28,268 | 1,731,418 | ||||||
9.75%, 05/17/35(b)(g) | 40,301 | 2,468,451 | ||||||
12.75%, 02/17/22(b)(g) | 14,002 | 857,641 | ||||||
|
| |||||||
14,745,236 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 13.6% | 1,961,316,623 | |||||||
|
| |||||||
Foreign Government Obligations(a) |
| |||||||
Angola — 0.9% | ||||||||
Angolan Government International Bond 8.25%, 05/09/28(b) | 44,944 | 46,938,390 | ||||||
9.38%, 05/08/48(b) | 45,117 | 47,711,227 | ||||||
9.50%, 11/12/25(b) | 37,080 | 41,761,350 | ||||||
|
| |||||||
136,410,967 |
Security | Par (000) | Value | ||||||
Argentina — 1.4% | ||||||||
Argentine Republic Government International Bond | $ | 59,570 | $ | 23,939,697 | ||||
4.63%, 01/11/23 | 22,269 | 8,977,191 | ||||||
5.63%, 01/26/22 | 36,099 | 15,263,108 | ||||||
5.88%, 01/11/28 | 49,621 | 18,980,032 | ||||||
6.63%, 07/06/28 | 12,298 | 4,817,593 | ||||||
6.88%, 01/26/27 | 43,656 | 17,230,477 | ||||||
6.88%, 01/11/48 | 36,086 | 14,208,863 | ||||||
7.13%, 07/06/36 | 20,695 | 8,090,452 | ||||||
7.13%, 06/28/2117 | 31,742 | 12,736,478 | ||||||
7.50%, 04/22/26 | 75,081 | 31,580,946 | ||||||
7.63%, 04/22/46 | 31,648 | 12,738,320 | ||||||
8.28%, 12/31/33 | 71,470 | 36,242,698 | ||||||
|
| |||||||
204,805,855 | ||||||||
Azerbaijan — 0.6% | ||||||||
Republic of Azerbaijan International Bond | ||||||||
3.50%, 09/01/32(b) | 28,170 | 27,351,310 | ||||||
4.75%, 03/18/24(b) | 33,003 | 34,941,926 | ||||||
State Oil Co. of the Azerbaijan Republic, | 23,803 | 24,777,435 | ||||||
|
| |||||||
87,070,671 | ||||||||
Bahrain — 2.4% | ||||||||
Bahrain Government International Bond | 26,450 | 27,723,303 | ||||||
6.00%, 09/19/44(b) | 32,433 | 32,655,977 | ||||||
6.13%, 07/05/22(b) | 39,000 | 41,644,688 | ||||||
6.13%, 08/01/23(b) | 35,751 | 38,935,073 | ||||||
6.75%, 09/20/29(b) | 30,252 | 34,411,650 | ||||||
7.00%, 01/26/26(b) | 26,555 | 30,355,684 | ||||||
7.00%, 10/12/28(b) | 44,300 | 51,083,438 | ||||||
CBB International Sukuk Co. 5 Spc, | 27,142 | 29,084,349 | ||||||
CBB International Sukuk Co. 7 SPC, | 25,300 | 29,095,000 | ||||||
CBB International Sukuk Programme Co. SPC, | 26,600 | 27,464,500 | ||||||
|
| |||||||
342,453,662 | ||||||||
Bolivia — 0.2% | ||||||||
Bolivian Government International Bond, | 25,927 | 24,274,154 | ||||||
|
| |||||||
Brazil — 3.4% | ||||||||
Banco Nacional de Desenvolvimento Economico e Social, | 20,488 | 22,620,033 | ||||||
Brazil Minas SPE via State of Minas Gerais, 5.33%, 02/15/28(b) | 15,404 | 16,357,547 | ||||||
Brazilian Government International Bond | 32,585 | 32,666,463 | ||||||
4.25%, 01/07/25 | 63,779 | 67,545,947 | ||||||
4.50%, 05/30/29 (Call 02/28/29) | 23,733 | 25,030,898 | ||||||
4.63%, 01/13/28 (Call 10/13/27) | 44,979 | 48,099,418 | ||||||
5.00%, 01/27/45 | 52,206 | 54,310,554 | ||||||
5.63%, 01/07/41 | 36,899 | 41,430,658 | ||||||
5.63%, 02/21/47 | 44,530 | 50,068,419 | ||||||
6.00%, 04/07/26 | 33,003 | 38,335,047 | ||||||
7.13%, 01/20/37 | 31,718 | 40,787,366 | ||||||
8.25%, 01/20/34 | 23,834 | 33,017,538 | ||||||
8.88%, 04/15/24 | 13,610 | 17,267,688 | ||||||
|
| |||||||
487,537,576 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Chile — 0.9% | ||||||||
Chile Government International Bond | $ | 52,350 | $ | 55,998,141 | ||||
3.50%, 01/25/50 (Call 07/25/49) | 34,325 | 36,920,828 | ||||||
3.86%, 06/21/47 | 35,945 | 41,280,586 | ||||||
|
| |||||||
134,199,555 | ||||||||
China — 0.7% | ||||||||
China Government International Bond | 11,100 | 11,124,864 | ||||||
2.63%, 11/02/27(b) | 11,803 | 12,230,859 | ||||||
3.25%, 10/19/23(b) | 18,359 | 19,246,931 | ||||||
3.50%, 10/19/28(b) | 12,994 | 14,398,976 | ||||||
Export-Import Bank of China (The) | 12,359 | 12,450,951 | ||||||
2.88%, 04/26/26(b) | 13,101 | 13,391,678 | ||||||
3.63%, 07/31/24(b) | 18,238 | 19,279,208 | ||||||
|
| |||||||
102,123,467 | ||||||||
Colombia — 3.3% | ||||||||
Colombia Government International Bond | 17,777 | 17,904,772 | ||||||
3.88%, 04/25/27 (Call 01/25/27) | 41,276 | 43,933,142 | ||||||
4.00%, 02/26/24 (Call 11/26/23) | 35,279 | 37,362,666 | ||||||
4.50%, 01/28/26 (Call 10/28/25) | 26,440 | 28,968,325 | ||||||
4.50%, 03/15/29 (Call 12/15/28) | 36,300 | 40,440,469 | ||||||
5.00%, 06/15/45 (Call 12/15/44) | 82,155 | 95,787,595 | ||||||
5.20%, 05/15/49 (Call 11/15/48) | 26,803 | 32,280,863 | ||||||
5.63%, 02/26/44 (Call 08/26/43) | 44,375 | 55,149,805 | ||||||
6.13%, 01/18/41 | 45,409 | 58,903,987 | ||||||
7.38%, 09/18/37 | 31,646 | 44,937,320 | ||||||
8.13%, 05/21/24 | 17,563 | 21,734,213 | ||||||
|
| |||||||
477,403,157 | ||||||||
Costa Rica — 0.5% | ||||||||
Costa Rica Government International Bond | 25,304 | 24,813,735 | ||||||
7.00%, 04/04/44(b) | 25,993 | 25,684,333 | ||||||
7.16%, 03/12/45(b) | 26,493 | 26,377,093 | ||||||
|
| |||||||
76,875,161 | ||||||||
Croatia — 0.6% | ||||||||
Croatia Government International Bond | 37,968 | 41,966,505 | ||||||
6.00%, 01/26/24(b) | 42,288 | 48,684,060 | ||||||
|
| |||||||
90,650,565 | ||||||||
Dominican Republic — 2.6% | ||||||||
Dominican Republic International Bond | 37,710 | 40,337,916 | ||||||
5.88%, 04/18/24(b) | 24,675 | 26,402,250 | ||||||
5.95%, 01/25/27(b) | 42,720 | 46,992,000 | ||||||
6.00%, 07/19/28(b) | 33,360 | 36,977,475 | ||||||
6.40%, 06/05/49(b) | 38,685 | 41,864,424 | ||||||
6.50%, 02/15/48(b) | 26,420 | 28,855,594 | ||||||
6.85%, 01/27/45(b) | 51,040 | 57,611,400 | ||||||
6.88%, 01/29/26(b) | 38,205 | 43,625,334 | ||||||
7.45%, 04/30/44(b) | 39,550 | 47,472,359 | ||||||
|
| |||||||
370,138,752 | ||||||||
Ecuador — 2.6% | ||||||||
Ecuador Government International Bond | 67,980 | 61,075,781 | ||||||
7.95%, 06/20/24(b) | 43,000 | 41,589,062 | ||||||
8.75%, 06/02/23(b) | 25,700 | 26,109,594 |
Security | Par (000) | Value | ||||||
Ecuador (continued) | ||||||||
8.88%, 10/23/27(b) | $ | 56,990 | $ | 53,445,934 | ||||
9.50%, 03/27/30(c) | 15,900 | 15,264,000 | ||||||
9.63%, 06/02/27(b) | 22,725 | 22,128,469 | ||||||
9.65%, 12/13/26(b) | 40,521 | 39,938,511 | ||||||
10.75%, 03/28/22(b) | 62,650 | 66,663,516 | ||||||
10.75%, 01/31/29(b) | 47,865 | 48,747,511 | ||||||
|
| |||||||
374,962,378 | ||||||||
Egypt — 2.7% | ||||||||
Egypt Government International Bond | 29,733 | 30,617,259 | ||||||
5.88%, 06/11/25(b) | 35,810 | 37,085,731 | ||||||
6.13%, 01/31/22(b) | 56,375 | 58,277,656 | ||||||
6.59%, 02/21/28(b) | 28,784 | 29,287,720 | ||||||
7.50%, 01/31/27(b) | 47,598 | 51,584,333 | ||||||
7.60%, 03/01/29(b) | 41,027 | 43,488,620 | ||||||
7.90%, 02/21/48(b) | 35,800 | 35,889,500 | ||||||
8.50%, 01/31/47(b) | 61,039 | 64,110,025 | ||||||
8.70%, 03/01/49(b) | 36,649 | 39,248,789 | ||||||
|
| |||||||
389,589,633 | ||||||||
El Salvador — 0.4% | ||||||||
El Salvador Government International Bond | 29,425 | 30,123,844 | ||||||
7.65%, 06/15/35(b) | 25,360 | 27,666,175 | ||||||
|
| |||||||
57,790,019 | ||||||||
Ethiopia — 0.2% | ||||||||
Ethiopia International Bond, | 26,400 | 27,769,500 | ||||||
|
| |||||||
Gabon — 0.3% | ||||||||
Gabon Government International Bond, | 38,975 | 38,767,945 | ||||||
|
| |||||||
Ghana — 0.9% | ||||||||
Ghana Government International Bond | 24,730 | 25,031,397 | ||||||
8.13%, 01/18/26(b) | 26,158 | 27,678,434 | ||||||
8.13%, 03/26/32(b) | 30,530 | 30,873,462 | ||||||
8.63%, 06/16/49(b) | 26,700 | 26,666,625 | ||||||
8.95%, 03/26/51(b) | 26,175 | 26,518,547 | ||||||
|
| |||||||
136,768,465 | ||||||||
Hungary — 1.5% | ||||||||
Hungary Government International Bond | 49,808 | 54,539,760 | ||||||
5.38%, 03/25/24 | 50,742 | 57,195,748 | ||||||
5.75%, 11/22/23 | 49,226 | 55,640,763 | ||||||
7.63%, 03/29/41 | 31,572 | 51,866,877 | ||||||
|
| |||||||
219,243,148 | ||||||||
India — 0.4% | ||||||||
Export-Import Bank of India | 26,480 | 27,142,000 | ||||||
3.88%, 02/01/28(b) | 25,630 | 27,167,800 | ||||||
|
| |||||||
54,309,800 | ||||||||
Indonesia — 3.7% | ||||||||
Indonesia Government International Bond | 10,064 | 10,190,806 | ||||||
3.38%, 04/15/23(b) | 12,401 | 12,738,152 | ||||||
3.50%, 01/11/28 | 11,656 | 12,129,525 | ||||||
3.70%, 10/30/49 | 4,700 | 4,764,625 | ||||||
3.75%, 04/25/22(b) | 19,090 | 19,692,528 | ||||||
3.85%, 07/18/27(b) | 9,880 | 10,460,450 |
SCHEDULE OF INVESTMENTS |
Schedule of Investments (continued) October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Indonesia (continued) | ||||||||
4.10%, 04/24/28 | $ | 10,589 | $ | 11,419,575 | ||||
4.13%, 01/15/25(b) | 18,258 | 19,421,948 | ||||||
4.35%, 01/08/27(b) | 11,533 | 12,567,366 | ||||||
4.35%, 01/11/48 | 16,518 | 18,061,401 | ||||||
4.63%, 04/15/43(b) | 13,106 | 14,629,573 | ||||||
4.75%, 01/08/26(b) | 19,982 | 22,067,621 | ||||||
4.75%, 02/11/29 | 12,253 | 13,953,104 | ||||||
4.75%, 07/18/47(b) | 9,461 | 10,818,062 | ||||||
5.13%, 01/15/45(b) | 18,822 | 22,433,471 | ||||||
5.25%, 01/17/42(b) | 20,288 | 24,250,500 | ||||||
5.25%, 01/08/47(b) | 11,577 | 14,167,354 | ||||||
5.35%, 02/11/49 | 10,128 | 12,891,045 | ||||||
5.38%, 10/17/23(b) | 10,207 | 11,297,873 | ||||||
5.88%, 01/15/24(b) | 16,412 | 18,494,273 | ||||||
5.95%, 01/08/46(b) | 11,479 | 15,224,024 | ||||||
6.63%, 02/17/37(b) | 13,458 | 18,130,449 | ||||||
6.75%, 01/15/44(b) | 16,802 | 24,005,857 | ||||||
7.75%, 01/17/38(b) | 16,541 | 24,749,471 | ||||||
8.50%, 10/12/35(b) | 14,393 | 22,561,027 | ||||||
Perusahaan Penerbit SBSN Indonesia III | 8,226 | 8,405,944 | ||||||
3.40%, 03/29/22(b) | 10,589 | 10,814,016 | ||||||
3.75%, 03/01/23(b) | 9,988 | 10,356,308 | ||||||
4.15%, 03/29/27(b) | 17,794 | 19,028,459 | ||||||
4.33%, 05/28/25(b) | 17,924 | 19,251,496 | ||||||
4.35%, 09/10/24(b) | 13,283 | 14,241,867 | ||||||
4.40%, 03/01/28(b) | 16,399 | 17,869,785 | ||||||
4.45%, 02/20/29(b) | 12,435 | 13,678,500 | ||||||
4.55%, 03/29/26(b) | 14,294 | 15,607,261 | ||||||
|
| |||||||
530,373,716 | ||||||||
Iraq — 0.6% | ||||||||
Iraq International Bond | 68,547 | 65,719,436 | ||||||
6.75%, 03/09/23(b) | 25,462 | 25,660,922 | ||||||
|
| |||||||
91,380,358 | ||||||||
Ivory Coast — 0.5% | ||||||||
Ivory Coast Government International Bond | 26,743 | 26,459,054 | ||||||
6.13%, 06/15/33(b) | 33,796 | 33,172,886 | ||||||
6.38%, 03/03/28(b) | 17,838 | 18,417,735 | ||||||
|
| |||||||
78,049,675 | ||||||||
Jamaica — 1.0% | ||||||||
Jamaica Government International Bond | 37,137 | 43,972,529 | ||||||
7.88%, 07/28/45 | 46,041 | 60,975,549 | ||||||
8.00%, 03/15/39 | 32,332 | 43,021,768 | ||||||
|
| |||||||
147,969,846 | ||||||||
Jordan — 0.5% | ||||||||
Jordan Government International Bond | 25,887 | 26,809,224 | ||||||
6.13%, 01/29/26(b) | 24,232 | 25,579,905 | ||||||
7.38%, 10/10/47(b) | 26,347 | 27,804,319 | ||||||
|
| |||||||
80,193,448 | ||||||||
Kazakhstan — 1.4% | ||||||||
Kazakhstan Government International Bond | 37,642 | 40,088,730 | ||||||
4.88%, 10/14/44(b) | 25,640 | 31,136,575 | ||||||
5.13%, 07/21/25(b) | 64,309 | 72,926,406 |
Security | Par (000) | Value | ||||||
Kazakhstan (continued) | ||||||||
6.50%, 07/21/45(b) | $ | 37,950 | $ | 55,084,425 | ||||
|
| |||||||
199,236,136 | ||||||||
Kenya — 1.0% | ||||||||
Kenya Government International Bond | 49,874 | 53,053,467 | ||||||
7.25%, 02/28/28(b) | 24,481 | 25,766,253 | ||||||
8.00%, 05/22/32(b) | 30,836 | 32,878,885 | ||||||
8.25%, 02/28/48(b) | 26,701 | 28,027,706 | ||||||
|
| |||||||
139,726,311 | ||||||||
Kuwait — 0.9% | ||||||||
Kuwait International Government Bond, | 115,058 | 123,903,084 | ||||||
|
| |||||||
Lebanon — 0.9% | ||||||||
Lebanon Government International Bond | 28,231 | 16,726,867 | ||||||
6.10%, 10/04/22(b) | 39,745 | 23,847,000 | ||||||
6.60%, 11/27/26(b) | 40,975 | 22,741,125 | ||||||
6.65%, 02/26/30(b) | 36,765 | 20,496,487 | ||||||
6.75%, 11/29/27(b) | 26,725 | 14,832,375 | ||||||
6.85%, 03/23/27(b) | 30,798 | 17,092,890 | ||||||
7.00%, 03/23/32(b) | 25,225 | 14,062,938 | ||||||
|
| |||||||
129,799,682 | ||||||||
Lithuania — 0.3% | ||||||||
Lithuania Government International Bond, | 36,414 | 40,135,056 | ||||||
|
| |||||||
Malaysia — 0.9% | ||||||||
1MDB Global Investments Ltd., | 75,700 | 72,776,088 | ||||||
Malaysia Sovereign Sukuk Bhd, | 25,004 | 25,972,905 | ||||||
Malaysia Sukuk Global Bhd, | 25,922 | 27,080,389 | ||||||
|
| |||||||
125,829,382 | ||||||||
Mexico — 2.5% | ||||||||
Mexico Government International Bond | 16,399 | 17,224,075 | ||||||
3.63%, 03/15/22 | 14,826 | 15,331,011 | ||||||
3.75%, 01/11/28 | 19,074 | 19,890,606 | ||||||
4.00%, 10/02/23 | 23,530 | 24,949,153 | ||||||
4.13%, 01/21/26 | 16,455 | 17,622,277 | ||||||
4.15%, 03/28/27 | 22,116 | 23,677,942 | ||||||
4.35%, 01/15/47 | 13,413 | 13,941,137 | ||||||
4.50%, 04/22/29 | 25,369 | 27,929,683 | ||||||
4.50%, 01/31/50 (Call 07/31/49) | 16,250 | 17,265,625 | ||||||
4.60%, 01/23/46 | 22,137 | 23,714,261 | ||||||
4.60%, 02/10/48 | 19,481 | 21,094,270 | ||||||
4.75%, 03/08/44 | 30,856 | 33,729,465 | ||||||
5.55%, 01/21/45 | 19,303 | 23,507,435 | ||||||
5.75%, 10/12/2110 | 22,354 | 26,070,352 | ||||||
6.05%, 01/11/40 | 23,016 | 29,431,710 | ||||||
6.75%, 09/27/34 | 12,868 | 17,484,395 | ||||||
8.30%, 08/15/31 | 8,960 | 13,199,200 | ||||||
|
| |||||||
366,062,597 | ||||||||
Mongolia — 0.2% | ||||||||
Mongolia Government International Bond, | 26,100 | 26,491,500 | ||||||
|
| |||||||
Morocco — 0.3% | ||||||||
Morocco Government International Bond, | 37,970 | 39,797,306 | ||||||
|
|
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Nigeria — 1.6% | ||||||||
Nigeria Government International Bond | $ | 38,622 | $ | 38,706,486 | ||||
7.14%, 02/23/30(b) | 32,155 | 32,265,533 | ||||||
7.63%, 11/21/25(b) | 26,485 | 28,852,097 | ||||||
7.63%, 11/28/47(b) | 39,325 | 38,317,297 | ||||||
7.70%, 02/23/38(b) | 31,720 | 31,690,262 | ||||||
7.88%, 02/16/32(b) | 37,905 | 39,089,531 | ||||||
8.75%, 01/21/31(b) | 25,795 | 28,414,805 | ||||||
|
| |||||||
237,336,011 | ||||||||
Oman — 2.6% | ||||||||
Oman Government International Bond | 18,000 | 18,000,000 | ||||||
4.13%, 01/17/23(b) | 23,470 | 23,558,013 | ||||||
4.75%, 06/15/26(b) | 50,775 | 49,251,750 | ||||||
5.38%, 03/08/27(b) | 41,420 | 41,018,744 | ||||||
5.63%, 01/17/28(b) | 50,780 | 50,145,250 | ||||||
6.00%, 08/01/29(c) | 200 | 200,000 | ||||||
6.00%, 08/01/29(b) | 28,275 | 28,275,000 | ||||||
6.50%, 03/08/47(b) | 38,651 | 35,752,175 | ||||||
6.75%, 01/17/48(b) | 55,220 | 51,734,237 | ||||||
Oman Sovereign Sukuk SAOC | 39,100 | 39,442,125 | ||||||
5.93%, 10/31/25(b) | 30,535 | 32,777,414 | ||||||
|
| |||||||
370,154,708 | ||||||||
Pakistan — 0.6% | ||||||||
Pakistan Government International Bond | 37,269 | 37,222,414 | ||||||
8.25%, 04/15/24(b) | 24,480 | 26,606,700 | ||||||
Third Pakistan International Sukuk Co. Ltd. (The), 5.63%, 12/05/22(b) | 27,300 | 27,368,250 | ||||||
|
| |||||||
91,197,364 | ||||||||
Panama — 2.1% | ||||||||
Panama Government International Bond | 27,800 | 28,738,250 | ||||||
3.75%, 03/16/25 (Call 12/16/24) | 31,812 | 33,651,131 | ||||||
3.88%, 03/17/28 (Call 12/17/27) | 32,551 | 35,439,901 | ||||||
4.00%, 09/22/24 (Call 06/24/24) | 33,062 | 35,407,336 | ||||||
4.50%, 05/15/47 (Call 11/15/46) | 30,600 | 36,098,438 | ||||||
4.50%, 04/16/50 (Call 10/16/49) | 45,448 | 53,273,577 | ||||||
6.70%, 01/26/36 | 53,811 | 75,873,510 | ||||||
|
| |||||||
298,482,143 | ||||||||
Paraguay — 0.2% | ||||||||
Paraguay Government International Bond, 6.10%, 08/11/44(b) | 26,206 | 31,954,941 | ||||||
|
| |||||||
Peru — 2.2% | ||||||||
Peruvian Government International Bond | 28,242 | 31,675,168 | ||||||
5.63%, 11/18/50 | 64,636 | 94,711,939 | ||||||
6.55%, 03/14/37 | 28,592 | 41,824,735 | ||||||
7.35%, 07/21/25 | 43,448 | 55,124,650 | ||||||
8.75%, 11/21/33 | 55,364 | 91,437,106 | ||||||
|
| |||||||
314,773,598 | ||||||||
Philippines — 3.3% | ||||||||
Philippine Government International Bond | 34,270 | 35,726,132 | ||||||
3.70%, 03/01/41 | 34,867 | 39,236,271 | ||||||
3.70%, 02/02/42 | 36,632 | 41,314,028 | ||||||
3.75%, 01/14/29 | 29,050 | 32,309,047 |
Security | Par (000) | Value | ||||||
Philippines (continued) | ||||||||
3.95%, 01/20/40 | $ | 35,177 | $ | 40,442,557 | ||||
4.20%, 01/21/24 | 25,196 | 27,298,291 | ||||||
5.00%, 01/13/37 | 23,447 | 30,026,814 | ||||||
5.50%, 03/30/26 | 16,964 | 20,218,968 | ||||||
6.38%, 01/15/32 | 18,058 | 24,620,954 | ||||||
6.38%, 10/23/34 | 34,450 | 48,854,406 | ||||||
7.75%, 01/14/31 | 31,153 | 46,232,999 | ||||||
9.50%, 02/02/30 | 37,416 | 60,216,375 | ||||||
10.63%, 03/16/25 | 26,986 | 38,556,248 | ||||||
|
| |||||||
485,053,090 | ||||||||
Poland — 1.6% | ||||||||
Republic of Poland Government International Bond | 51,410 | 52,968,365 | ||||||
3.25%, 04/06/26 | 44,303 | 47,279,608 | ||||||
4.00%, 01/22/24 | 51,225 | 55,258,969 | ||||||
5.00%, 03/23/22 | 74,330 | 79,718,925 | ||||||
|
| |||||||
235,225,867 | ||||||||
Qatar — 3.8% | ||||||||
Qatar Government International Bond | 50,450 | 52,972,500 | ||||||
3.38%, 03/14/24(b) | 32,935 | 34,437,660 | ||||||
3.88%, 04/23/23(b) | 42,470 | 44,848,320 | ||||||
4.00%, 03/14/29(b) | 55,625 | 61,830,664 | ||||||
4.50%, 04/23/28(b) | 40,510 | 46,333,313 | ||||||
4.63%, 06/02/46(b) | 29,760 | 36,177,000 | ||||||
4.82%, 03/14/49(b) | 80,550 | 99,076,500 | ||||||
5.10%, 04/23/48(b) | 79,350 | 101,320,031 | ||||||
5.75%, 01/20/42(b) | 15,339 | 21,158,233 | ||||||
6.40%, 01/20/40(b) | 8,240 | 12,032,975 | ||||||
9.75%, 06/15/30(b) | 8,839 | 14,545,679 | ||||||
SoQ Sukuk A QSC, 3.24%, 01/18/23(b) | 20,940 | 21,683,370 | ||||||
|
| |||||||
546,416,245 | ||||||||
Romania — 1.3% | ||||||||
Romanian Government International Bond | 39,124 | 41,777,096 | ||||||
4.88%, 01/22/24(b) | 26,710 | 29,431,081 | ||||||
5.13%, 06/15/48(b) | 30,384 | 34,951,095 | ||||||
6.13%, 01/22/44(b) | 25,134 | 32,697,763 | ||||||
6.75%, 02/07/22(b) | 49,643 | 54,529,733 | ||||||
|
| |||||||
193,386,768 | ||||||||
Russia — 3.5% | ||||||||
Russian Foreign Bond-Eurobond | 31,800 | 34,121,400 | ||||||
4.38%, 03/21/29(b) | 36,200 | 39,204,600 | ||||||
4.50%, 04/04/22(b) | 24,200 | 25,458,400 | ||||||
4.75%, 05/27/26(b) | 39,400 | 43,340,000 | ||||||
4.88%, 09/16/23(b) | 37,800 | 41,485,500 | ||||||
5.10%, 03/28/35(b) | 50,400 | 58,161,600 | ||||||
5.25%, 06/23/47(b) | 88,800 | 106,116,000 | ||||||
5.63%, 04/04/42(b) | 37,600 | 46,473,600 | ||||||
5.88%, 09/16/43(b) | 20,400 | 26,035,500 | ||||||
7.50%, 03/31/30(b)(h) | 34,740 | 39,841,864 | ||||||
12.75%, 06/24/28(b) | 30,200 | 51,491,000 | ||||||
|
| |||||||
511,729,464 | ||||||||
Saudi Arabia — 3.7% | ||||||||
KSA Sukuk Ltd. | 41,420 | 42,041,300 | ||||||
2.97%, 10/29/29(c) | 10,200 | 10,179,600 | ||||||
3.63%, 04/20/27(b) | 42,289 | 44,340,016 |
SCHEDULE OF INVESTMENTS |
Schedule of Investments (continued) October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Saudi Arabia (continued) | ||||||||
4.30%, 01/19/29(b) | $ | 17,372 | $ | 19,265,548 | ||||
Saudi Government International Bond | 24,510 | 25,000,200 | ||||||
3.25%, 10/26/26(b) | 51,023 | 52,706,759 | ||||||
3.63%, 03/04/28(b) | 46,849 | 49,238,299 | ||||||
4.00%, 04/17/25(b) | 38,060 | 40,876,440 | ||||||
4.38%, 04/16/29(b) | 35,554 | 39,713,818 | ||||||
4.50%, 04/17/30(b) | 25,472 | 28,847,040 | ||||||
4.50%, 10/26/46(b) | 58,102 | 63,912,200 | ||||||
4.63%, 10/04/47(b) | 40,887 | 45,813,883 | ||||||
5.00%, 04/17/49(b) | 33,868 | 40,144,164 | ||||||
5.25%, 01/16/50(b) | 33,365 | 41,164,069 | ||||||
|
| |||||||
543,243,336 | ||||||||
Senegal — 0.4% | ||||||||
Senegal Government International Bond | 27,020 | 27,619,506 | ||||||
6.75%, 03/13/48(b) | 26,885 | 26,397,710 | ||||||
|
| |||||||
54,017,216 | ||||||||
Slovakia — 0.3% | ||||||||
Slovakia Government International Bond, | 38,010 | 40,088,672 | ||||||
|
| |||||||
South Africa — 2.3% | ||||||||
Republic of South Africa Government International Bond | 41,588 | 40,142,817 | ||||||
4.67%, 01/17/24 | 23,474 | 24,493,652 | ||||||
4.85%, 09/27/27 | 21,360 | 21,707,100 | ||||||
4.85%, 09/30/29 | 11,500 | 11,356,250 | ||||||
4.88%, 04/14/26 | 25,860 | 26,651,962 | ||||||
5.00%, 10/12/46 | 20,129 | 18,468,358 | ||||||
5.38%, 07/24/44 | 20,123 | 19,311,792 | ||||||
5.65%, 09/27/47 | 31,437 | 30,837,732 | ||||||
5.75%, 09/30/49 | 43,050 | 41,577,690 | ||||||
5.88%, 05/30/22 | 20,716 | 22,308,543 | ||||||
5.88%, 09/16/25 | 42,204 | 45,989,171 | ||||||
5.88%, 06/22/30 | 29,102 | 30,881,587 | ||||||
|
| |||||||
333,726,654 | ||||||||
Sri Lanka — 2.0% | ||||||||
Sri Lanka Government International Bond | 32,770 | 32,862,166 | ||||||
5.88%, 07/25/22(b) | 26,245 | 26,474,644 | ||||||
6.20%, 05/11/27(b) | 38,705 | 37,096,323 | ||||||
6.75%, 04/18/28(b) | 32,220 | 31,454,775 | ||||||
6.83%, 07/18/26(b) | 26,000 | 26,138,125 | ||||||
6.85%, 03/14/24(b) | 25,750 | 26,581,738 | ||||||
6.85%, 11/03/25(b) | 39,050 | 39,574,734 | ||||||
7.55%, 03/28/30(b) | 32,775 | 33,061,781 | ||||||
7.85%, 03/14/29(b) | 40,200 | 41,406,000 | ||||||
|
| |||||||
294,650,286 | ||||||||
Trinidad And Tobago — 0.2% | ||||||||
Trinidad & Tobago Government International Bond, 4.50%, 08/04/26(b) | 26,000 | 27,023,750 | ||||||
|
| |||||||
Tunisia — 0.2% | ||||||||
Banque Centrale de Tunisie International Bond, 5.75%, 01/30/25(b) | 27,200 | 24,879,500 | ||||||
|
| |||||||
Turkey — 3.7% | ||||||||
Hazine Mustesarligi Varlik Kiralama AS 4.49%, 11/25/24(b) | 8,699 | 8,330,163 |
Security | Par (000) | Value | ||||||
Turkey (continued) | ||||||||
5.00%, 04/06/23(b) | $ | 14,531 | $ | 14,385,690 | ||||
5.80%, 02/21/22(b) | 18,511 | 18,840,727 | ||||||
Turkey Government International Bond | 13,718 | 13,032,100 | ||||||
4.25%, 04/14/26 | 14,671 | 13,368,949 | ||||||
4.88%, 10/09/26 | 30,254 | 28,372,579 | ||||||
4.88%, 04/16/43 | 27,694 | 22,060,002 | ||||||
5.13%, 03/25/22 | 10,448 | 10,562,275 | ||||||
5.13%, 02/17/28 | 21,810 | 20,344,641 | ||||||
5.75%, 03/22/24 | 25,231 | 25,436,002 | ||||||
5.75%, 05/11/47 | 36,264 | 31,153,042 | ||||||
6.00%, 03/25/27 | 31,034 | 30,791,547 | ||||||
6.00%, 01/14/41 | 30,322 | 27,166,617 | ||||||
6.13%, 10/24/28 | 21,066 | 20,796,092 | ||||||
6.25%, 09/26/22 | 26,141 | 27,055,935 | ||||||
6.35%, 08/10/24 | 18,900 | 19,461,093 | ||||||
6.63%, 02/17/45 | 29,897 | 28,411,493 | ||||||
6.75%, 05/30/40 | 19,259 | 18,705,304 | ||||||
6.88%, 03/17/36 | 27,856 | 27,412,045 | ||||||
7.25%, 12/23/23 | 20,137 | 21,477,369 | ||||||
7.25%, 03/05/38 | 10,050 | 10,313,812 | ||||||
7.38%, 02/05/25 | 32,680 | 35,090,150 | ||||||
7.63%, 04/26/29 | 28,317 | 30,396,530 | ||||||
8.00%, 02/14/34 | 15,571 | 17,142,698 | ||||||
11.88%, 01/15/30 | 14,807 | 20,429,033 | ||||||
|
| |||||||
540,535,888 | ||||||||
Ukraine — 2.4% | ||||||||
Ukraine Government International Bond | 77,240 | 80,764,075 | ||||||
7.75%, 09/01/22(b) | 36,358 | 38,648,554 | ||||||
7.75%, 09/01/23(b) | 35,396 | 37,873,720 | ||||||
7.75%, 09/01/24(b) | 33,442 | 35,816,382 | ||||||
7.75%, 09/01/25(b) | 33,342 | 35,742,624 | ||||||
7.75%, 09/01/26(b) | 33,317 | 35,865,751 | ||||||
7.75%, 09/01/27(b) | 33,457 | 36,016,460 | ||||||
9.75%, 11/01/28(b) | 41,503 | 49,401,540 | ||||||
|
| |||||||
350,129,106 | ||||||||
United Arab Emirates — 2.8% | ||||||||
Abu Dhabi Government International Bond | 9,700 | 9,651,500 | ||||||
2.50%, 10/11/22(b) | 64,190 | 64,831,900 | ||||||
2.50%, 09/30/29(c) | 14,100 | 14,011,875 | ||||||
3.13%, 05/03/26(b) | 56,018 | 58,468,788 | ||||||
3.13%, 10/11/27(b) | 81,969 | 85,452,683 | ||||||
3.13%, 09/30/49(c) | 27,175 | 26,189,906 | ||||||
4.13%, 10/11/47(b) | 66,730 | 76,781,206 | ||||||
RAK Capital, 3.09%, 03/31/25(b) | 19,938 | 20,081,304 | ||||||
Sharjah Sukuk Program Ltd. | 17,400 | 18,291,750 | ||||||
4.23%, 03/14/28(b) | 23,702 | 25,650,008 | ||||||
|
| |||||||
399,410,920 | ||||||||
Uruguay — 2.4% | ||||||||
Uruguay Government International Bond | 44,563 | 49,214,215 | ||||||
4.38%, 01/23/31 (Call 10/23/30) | 31,924 | 35,625,188 | ||||||
4.50%, 08/14/24 | 28,936 | 31,278,460 | ||||||
4.98%, 04/20/55 | 65,300 | 76,604,784 | ||||||
5.10%, 06/18/50 | 99,443 | 118,865,380 |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2019 | iShares® J.P. Morgan USD Emerging Markets Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Uruguay (continued) | ||||||||
7.63%, 03/21/36 | $ | 27,145 | $ | 40,224,833 | ||||
|
| |||||||
351,812,860 | ||||||||
Venezuela — 0.1% | ||||||||
Venezuela Government International Bond | ||||||||
6.00%, 12/09/20(b)(g) | 11,204 | 1,064,380 | ||||||
7.65%, 04/21/25(b)(g) | 21,100 | 2,004,500 | ||||||
8.25%, 10/13/24(b)(g) | 17,625 | 1,674,356 | ||||||
9.00%, 05/07/23(b)(g) | 16,445 | 1,562,294 | ||||||
9.25%, 09/15/27(g) | 19,628 | 1,864,660 | ||||||
9.25%, 05/07/28(b)(g) | 18,699 | 1,776,395 | ||||||
9.37%, 01/13/34(g) | 18,430 | 1,750,850 | ||||||
11.75%, 10/21/26(b)(g) | 31,102 | 2,954,709 | ||||||
11.95%, 08/05/31(b)(g) | 20,937 | 1,988,996 | ||||||
12.75%, 08/23/22(b)(g) | 30,540 | 2,901,300 | ||||||
|
| |||||||
19,542,440 | ||||||||
Vietnam — 0.2% | ||||||||
Vietnam Government International Bond, | ||||||||
4.80%, 11/19/24(b) | 24,350 | 26,604,688 | ||||||
|
| |||||||
Zambia — 0.3% | ||||||||
Zambia Government International Bond | ||||||||
8.50%, 04/14/24(b) | 24,863 | 17,559,494 | ||||||
8.97%, 07/30/27(b) | 33,298 | 23,464,684 | ||||||
|
| |||||||
41,024,178 | ||||||||
|
| |||||||
Total Foreign Government Obligations — 85.0% |
| 12,314,492,220 | ||||||
|
|
Security | Shares (000) | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Treasury, | 98,438 | $ | 98,438,000 | |||||
|
| |||||||
Total Short-Term Investments — 0.7% |
| 98,438,000 | ||||||
|
| |||||||
Total Investments in Securities — 99.3% |
| 14,374,246,843 | ||||||
Other Assets, Less Liabilities — 0.7% |
| 108,059,596 | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 14,482,306,439 | ||||||
|
|
(a) | U.S. dollar denominated security issued by foreign domiciled entity. |
(b) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | Perpetual security with no stated maturity date. |
(e) | Variable or floating rate security. Rate shown is the rate in effect as ofperiod-end. |
(f) | Security is issued at a fixed coupon rate, which converts to a variable rate at a specified date. |
(g) | Issuer filed for bankruptcy and/or is in default. |
(h) | 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. |
(i) | Affiliate of the Fund. |
(j) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 (000) |
| | Net Activity (000) | | | Shares Held at 10/31/19 |
| | Value at 10/31/19 |
| Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 62,171 | 36,267 | 98,438 | $ | 98,438,000 | $ | 1,474,545 | $ | — | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 1,961,316,623 | $ | — | $ | 1,961,316,623 | ||||||||
Foreign Government Obligations | — | 12,314,492,220 | — | 12,314,492,220 | ||||||||||||
Money Market Funds | 98,438,000 | — | — | 98,438,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 98,438,000 | $ | 14,275,808,843 | $ | — | $ | 14,374,246,843 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULE OF INVESTMENTS |
Statement of Assets and Liabilities
October 31, 2019
iShares J.P. Morgan USD Emerging Markets Bond ETF | ||||
| ||||
ASSETS | ||||
Investments in securities, at value: | ||||
Unaffiliated(a) | $ | 14,275,808,843 | ||
Affiliated(b) | 98,438,000 | |||
Receivables: | ||||
Investments sold | 105,583,702 | |||
Capital shares sold | 75,623,222 | |||
Dividends | 85,386 | |||
Interest | 170,155,320 | |||
|
| |||
Total assets | 14,725,694,473 | |||
|
| |||
LIABILITIES | ||||
Bank overdraft | 36,631 | |||
Payables: | ||||
Investments purchased | 238,495,162 | |||
Capital shares redeemed | 151,161 | |||
Investment advisory fees | 4,705,080 | |||
|
| |||
Total liabilities | 243,388,034 | |||
|
| |||
NET ASSETS | $ | 14,482,306,439 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 14,887,106,733 | ||
Accumulated loss | (404,800,294 | ) | ||
|
| |||
NET ASSETS | $ | 14,482,306,439 | ||
|
| |||
Shares outstanding | 128,000,000 | |||
|
| |||
Net asset value | $ | 113.14 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Investments, at cost — Unaffiliated | $ | 14,280,212,673 | ||
(b) Investments, at cost — Affiliated | $ | 98,438,000 |
See notes to financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Statement of Operations
Year Ended October 31, 2019
iShares J.P. Morgan USD Emerging Markets Bond ETF | ||||
| ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 1,474,545 | ||
Interest — Unaffiliated | 801,661,242 | |||
Other income — Unaffiliated | 1,101,386 | |||
Foreign taxes withheld | (97 | ) | ||
|
| |||
Total investment income | 804,237,076 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 60,648,321 | |||
|
| |||
Total expenses | 60,648,321 | |||
|
| |||
Net investment income | 743,588,755 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated | (156,995,693 | ) | ||
In-kind redemptions — Unaffiliated | 317,508,331 | |||
|
| |||
Net realized gain | 160,512,638 | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | 1,198,822,979 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | 1,198,822,979 | |||
|
| |||
Net realized and unrealized gain | 1,359,335,617 | |||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,102,924,372 | ||
|
|
See notes to financial statements.
FINANCIAL STATEMENTS |
Statements of Changes in Net Assets
iShares J.P. Morgan USD Emerging Markets Bond ETF | ||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||
| ||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 743,588,755 | $ | 583,133,460 | ||||
Net realized gain (loss) | 160,512,638 | (87,221,198 | ) | |||||
Net change in unrealized appreciation (depreciation) | 1,198,822,979 | (1,252,248,328 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 2,102,924,372 | (756,336,066 | ) | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (872,461,442 | ) | (560,509,063 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from capital share transactions | (1,492,886,987 | ) | 4,133,365,853 | |||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase (decrease) in net assets | (262,424,057 | ) | 2,816,520,724 | |||||
Beginning of year | 14,744,730,496 | 11,928,209,772 | ||||||
|
|
|
| |||||
End of year | $ | 14,482,306,439 | $ | 14,744,730,496 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights
(For a share outstanding throughout each period)
iShares J.P. Morgan USD Emerging Markets Bond ETF | ||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Year Ended 10/31/15 | ||||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of year | $ | 104.57 | $ | 115.92 | $ | 114.74 | $ | 108.36 | $ | 114.15 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 5.25 | 5.07 | 5.33 | 5.39 | 5.08 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | 9.44 | (11.50 | ) | 1.02 | 6.57 | (5.75 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 14.69 | (6.43 | ) | 6.35 | 11.96 | (0.67 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (6.12 | ) | (4.92 | ) | (5.17 | ) | (5.58 | ) | (5.12 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (6.12 | ) | (4.92 | ) | (5.17 | ) | (5.58 | ) | (5.12 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 113.14 | $ | 104.57 | $ | 115.92 | $ | 114.74 | $ | 108.36 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 14.50 | % | (5.68 | )% | 5.74 | % | 11.35 | % | (0.55 | )% | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.39 | % | 0.39 | % | 0.54 | % | 0.59 | % | 0.60 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived | 0.39 | % | 0.39 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 4.81 | % | 4.60 | % | 4.69 | % | 4.81 | % | 4.61 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 14,482,306 | $ | 14,744,730 | $ | 11,928,210 | $ | 9,649,296 | $ | 4,464,443 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(d) | 11 | % | 15 | % | 26 | % | 32 | % | 24 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS |
Notes to Financial Statements
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following fund (the “Fund”):
iShares ETF | Diversification Classification | |||
J.P. Morgan USD Emerging Markets Bond(a) | Diversified |
(a) | The Fund’s classification changed fromnon-diversified to diversified during the reporting period. |
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities, andpayment-in-kind interest income, if any, are recognized daily on the accrual basis. Dividend income and capital gain distributions, if any, are recognized on theex-dividend date, net of any foreign taxes withheld at source.
Foreign Taxes:The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by the Fund are recorded on theex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund.
Recent Accounting Standards:In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization on Purchase Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Fund.
Indemnifications:In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:
• | Fixed-income investments are valued using the last available bid price or current market quotations provided by independent dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions. |
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for the Fund’s investments is included in its schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $19 billion | 0.4000 | % | ||
Over $19 billion, up to and including $33 billion | 0.3800 | |||
Over $33 billion, up to and including $47 billion | 0.3610 | |||
Over $47 billion | 0.3430 |
Each reduced 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.
Distributor: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.
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
NOTESTO FINANCIAL STATEMENTS |
Notes to Financial Statements (continued)
Other Transactions:Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule17a-7.
For the year ended October 31, 2019, transactions executed by the Fund pursuant to Rule17a-7 under the 1940 Act were as follows:
|
| |||||||||||
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
|
| |||||||||||
J.P. Morgan USD Emerging Markets Bond | $ | 5,624,595 | $ | 15,835,895 | $ | (463,465 | ) | |||||
|
|
The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
5. | PURCHASES AND SALES |
For the year ended October 31, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
|
| |||||||
iShares ETF | Purchases | Sales | ||||||
|
| |||||||
J.P. Morgan USD Emerging Markets Bond | $ | 2,038,409,568 | $ | 1,736,908,782 | ||||
|
|
For the year ended October 31, 2019,in-kind transactions were as follows:
|
| |||||||
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
|
| |||||||
J.P. Morgan USD Emerging Markets Bond | $ | 7,391,359,140 | $ | 9,189,906,690 | ||||
|
|
6. | 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.
Management has analyzed tax laws and regulations and their application to the Fund as of October 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2019, the following permanent differences attributable to realized gains (losses) fromin-kind redemptions, were reclassified to the following accounts:
|
| |||||||
iShares ETF | Paid-in Capital | Accumulated Loss | ||||||
|
| |||||||
J.P. Morgan USD Emerging Markets Bond | $ | 262,560,236 | $ | (262,560,236 | ) | |||
|
|
The tax character of distributions paid was as follows:
| ||||||||
iShares ETF | Year Ended 10/31/19 | Year Ended 10/31/18 | ||||||
| ||||||||
J.P. Morgan USD Emerging Markets Bond | ||||||||
Ordinary income | $ | 872,461,442 | $ | 560,509,063 | ||||
|
|
|
|
As of October 31, 2019, the tax components of accumulated net earnings (losses) were as follows:
|
| |||||||||||||||
Undistributed | Non-expiring Capital Loss | Net Unrealized | ||||||||||||||
iShares ETF | Ordinary Income | Carryforwards | (a) | Gains (Losses) | (b) | Total | ||||||||||
|
| |||||||||||||||
J.P. Morgan USD Emerging Markets Bond | $ | 55,110,551 | $ | (375,756,539 | ) | $ | (84,154,306 | ) | $ | (404,800,294 | ) | |||||
|
|
(a) | Amounts available to offset future realized capital gains. |
(b) | The difference between book-basis andtax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, amortization methods for premiums and discounts on fixed income securities and the accrual of income on securities in default. |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
As of October 31, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
J.P. Morgan USD Emerging Markets Bond | $ | 14,458,401,149 | $ | 594,857,207 | $ | (679,011,513 | ) | $ | (84,154,306) |
7. | PRINCIPAL RISKS |
In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve the Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
Investing in the securities ofnon-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its schedule of investments.
NOTESTO FINANCIAL STATEMENTS |
Notes to Financial Statements (continued)
8. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of the Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | |||||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||
| ||||||||||||||||||
J.P. Morgan USD Emerging Markets Bond | ||||||||||||||||||
Shares sold | 72,300,000 | $ | 7,852,920,951 | 98,900,000 | $ | 10,877,622,219 | ||||||||||||
Shares redeemed | (85,300,000 | ) | (9,345,807,938 | ) | (60,800,000 | ) | (6,744,256,366 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net increase(decrease) | (13,000,000 | ) | $ | (1,492,886,987 | ) | 38,100,000 | $ | 4,133,365,853 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
9. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision. The appeal was fully briefed on January 18, 2019, and a hearing on Plaintiffs’ appeal took place on November 19, 2019.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of iShares Trust and
Shareholders of iShares J.P. Morgan USD Emerging Markets Bond ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of iShares J.P. Morgan USD Emerging Markets Bond ETF (one of the funds constituting iShares Trust, referred to hereafter as the “Fund”) as of October 31, 2019, the related statement of operations for the year ended October 31, 2019, the statement of changes in net assets for each of the two years in the period ended October 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2019 (hereafter referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2019 and the financial highlights for each of the five years in the period ended October 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Fixed Income | ||
LIBOR | London Interbank Offered Rate |
2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2019 BlackRock, Inc. All rights reserved.iSHARES andBLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-1019-1019
![]() | ![]() |
![]() | OCTOBER 31, 2019 |
2019 Annual Report |
iShares U.S. ETF Trust
· | iShares Bloomberg Roll Select Commodity Strategy ETF | CMDY | NYSE Arca |
· | iShares Commodities Select Strategy ETF | COMT | NASDAQ |
· | iShares Gold Strategy ETF | IAUF | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
Page | ||||
3 | ||||
4 | ||||
10 | ||||
10 | ||||
11 | ||||
Consolidated Financial Statements | ||||
20 | ||||
21 | ||||
22 | ||||
24 | ||||
27 | ||||
35 | ||||
36 | ||||
37 | ||||
44 | ||||
46 | ||||
48 | ||||
49 |
iShares U.S. ETF Trust
Global Market Overview
Global commodities declined for the 12 months ended October 31, 2019 (“reporting period”). The S&P GSCI Index, a broad measure of global commodities markets performance, returned -10.01% in U.S. dollar terms for the reporting period as uncertainty mounted surrounding global economic growth and trade.
The U.S. economy continued to grow at a modest pace, while most developed countries experienced weak growth. Growth in Europe remained sluggish, with quarterly contractions in Germany and the U.K., the two largest European economies. Despite rising consumer spending, economic growth in Japan was tepid as exports declined for ten straight months. Growth in China, the world’s second largest economy, slowed to a pace of approximately 6% as exports declined and industrial output hit a 17-year low. The delayed effect of interest rate increases by the U.S. Federal Reserve Bank (“Fed”) and the ongoing trade dispute between the U.S. and China both slowed global growth.
In response to the economic slowdown and benign inflation, central banks dramatically shifted monetary policy toward more accommodative policies. The Fed reduced interest rates three times, starting in July 2019. The European Central Bank (“ECB”) also reduced interest rates and revived its bond purchase program in September 2019, while the Bank of Japan renewed its commitment to future economic stimulus. The sea change in central bank policy raised investors’ optimism that a deepening downturn could be averted.
Geopolitical risks remained elevated during the reporting period as the trade dispute between China and the U.S. alternated between retaliatory tariffs and the resumption of trade talks. Geopolitical strains in the Middle East, including tensions between the U.S. and Iran, Turkey’s military operations in Syria, attacks on Saudi oil fields, and an ongoing Saudi-led trade embargo of Qatar, also contributed to market volatility. Uncertainty surrounding Brexit also dampened market sentiment as the E.U. granted the U.K. an extension to its deadline for leaving the E.U.
Demand for many commodities declined amid a downturn in manufacturing and expectations of deteriorating global economic growth. In particular, lower orders from China, the world’s largest importer of oil and natural gas and leading consumer of many other commodities, including copper, steel, and agricultural products like soybeans, constrained commodities prices. In energy markets, oil prices declined despite limits on global production and reduced capacity due to geopolitical tensions in the Middle East. Canada also enacted output limits; however, the U.S., the world’s largest oil producer, increased production in 2018, due in part to expanded fracking activity. Meanwhile, demand for crude oil slumped along with global economic growth, further constraining oil prices.
A sharp rise in the price of iron ore, a key steel-making input, negatively affected major industrial metals-producing countries such as Brazil and the U.S. Lower orders due to rising tariffs and slowing industrial activity pressured prices of metals like steel, copper, and aluminum. Agricultural commodities like soybeans and wheat also experienced significant price volatility attributable to trade concerns.
In contrast, precious metals producers from countries such as Canada and South Africa were bolstered by rising prices and strong demand as investors seeking to avoid the uncertainty of financial markets turned toward gold as a store of value.
MARKET OVERVIEW | 3 |
Fund Summary as of October 31, 2019 | iShares® Bloomberg Roll Select Commodity Strategy ETF |
Investment Objective
TheiShares Bloomberg Roll Select Commodity Strategy ETF(the “Fund”) seeks to provide exposure, on a total return basis, to a diversified group of commodities. The Fund seeks to achieve its investment objective by investing in exchange-traded futures contracts on the Bloomberg Roll Select Commodity Index. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | (4.19 | )% | (5.44 | )% | (4.19 | )% | (8.47 | )% | ||||||||||||
Fund Market | (4.29 | ) | (5.40 | ) | (4.29 | ) | (8.41 | ) | ||||||||||||
Bloomberg Roll Select Commodity Index | (4.03 | ) | (5.30 | ) | (4.03 | ) | (8.22 | ) |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 4/3/18. The first day of secondary market trading was 4/5/18.
The Bloomberg Roll Select Commodity Index is an unmanaged index that aims to reflect the performance of a diversified group of commodities, while also seeking to minimize the effect of contango and maximize the effect of backwardation in connection with periodically switching or “rolling” into new futures contracts.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 985.30 | $ | 1.35 | $ | 1,000.00 | $ | 1,023.80 | $ | 1.38 | 0.27 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
4 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Bloomberg Roll Select Commodity Strategy ETF |
Portfolio Management Commentary
The Fund declined during the reporting period amid volatile commodities prices and concerns about slowing economic growth and the effect of escalating trade tensions on global commodities demand. The Fund uses a mix of commodities futures designed to provide investors total returns consistent with investment in a broad basket of commodities. Some of the Fund’s largest exposures were to energy, particularly to West Texas Intermediate crude oil, Brent crude oil, and natural gas. Gold and copper exposures were also substantial.
In energy markets, Brent and West Texas Intermediate crude oil prices declined sharply in late 2018 and remained volatile throughout the reporting period amid rising uncertainty surrounding oil supply and demand. While OPEC and other major oil-producing countries pledged to limit production in an attempt to support prices, production in the U.S., the world’s leading oil producer in 2018, increased. On the demand front, consumption of crude oil slumped along with global economic growth, particularly in China, where pessimism about weaker industrial activity constrained demand for oil. In the natural gas market, despite strong demand, record U.S. natural gas output and rising inventories weighed on prices.
Looking at other commodities, prices of many industrial metals declined as lower levels of manufacturing activity led to decreased demand for industrial commodities. The U.S.-China trade dispute weighed on copper prices, which, following a sharp increase in early 2019, declined to a two-year low late in the reporting period. The agricultural commodities market also weakened amid higher tariffs and lower Chinese demand. In contrast, the price of gold rose sharply, reaching its highest level since 2013. Demand for gold was strong, supported by record central bank buying and investor preference for assets with less exposure to an economic downturn in an environment of declining bond yields and global economic uncertainty.
Portfolio Information
ALLOCATION BY INVESTMENT TYPE
Investment Type | Percent of Net Assets | |||
Commercial Paper | 82.4 | % | ||
Money Market Funds | 17.4 | |||
U. S. Treasury Obligations | 4.7 | |||
Cash | 3.9 | |||
Other assets, less liabilities | (8.4 | ) |
COMMODITIES EXPOSURE
Sector Exposure(a) | Percent of Exposure | |||
Energy Futures | 30.3 | % | ||
Agriculture Futures | 28.3 | |||
Precious Metals Futures | 18.0 | |||
Industrial Metals Futures | 17.8 | |||
Livestock Futures | 5.6 |
(a) | Represents the sector allocation of the Bloomberg Roll Select Commodity Index. |
FUND SUMMARY | 5 |
Fund Summary as of October 31, 2019 | iShares® Commodities Select Strategy ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (5.67 | )%(a) | (5.52 | )% | (5.23 | )% | (5.67 | )% | (24.70 | )% | (23.74 | )% | ||||||||||||||||
Fund Market | (5.48 | ) | (5.54 | ) | (5.22 | ) | (5.48 | ) | (24.81 | ) | (23.71 | ) | ||||||||||||||||
S&P GSCITMDynamic Roll Reduced Energy 70/30 Futures/Equity Blend (USD) TR | (5.61 | ) | N/A | N/A | (5.61 | ) | N/A | N/A | ||||||||||||||||||||
S&P GSCITM(USD) TR | (10.01 | ) | (10.43 | ) | (10.15 | ) | (10.01 | ) | (42.34 | ) | (41.69 | ) |
(a) | The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
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™ Dynamic Roll Reduced Energy 70/30 Futures/Equity Blend (USD) TR is an unmanaged index that is designed to measure the performance of a multi-asset allocation strategy that consists of a futures-based commodities index and an equity-based index that is based on various commodity-related GICS subsectors. The inception date of this index was April 17, 2017. The average annual and cumulative total returns for the period April 17, 2017 through October 31, 2019 were 1.93% and 4.97%, respectively.
The S&P GSCI™ (USD) TR is an unmanaged index that measures the performance of general commodity price movements and inflation in the world economy.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a) | | Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) |
| | Expenses Paid During the Period |
(a) | | Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 957.80 | $ | 2.37 | $ | 1,000.00 | $ | 1,022.80 | $ | 2.45 | 0.48 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
6 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Commodities Select Strategy ETF |
Portfolio Management Commentary
The Fund declined during the reporting period amid volatile commodities prices and concerns about the effects of slowing economic growth and escalating trade tensions on commodities demand. Approximately 70% of the Fund’s exposure was to commodities futures, which detracted the most from the Fund’s return. Some of the Fund’s largest futures exposures included West Texas Intermediate crude oil, Brent crude oil, corn, and gold.
Oil prices declined sharply in late 2018 and remained volatile throughout the reporting period. Despite output limits set by major oil-producing countries to support prices, production in the U.S., the world’s leading oil producer in 2018, increased. On the demand front, crude oil consumption slumped alongside economic growth, particularly in China, where weaker industrial activity was negative for oil prices.
Prices of agricultural and industrial metals commodities generally declined as slowing economic activity and intensifying trade tensions weighed on demand for crops like wheat and input materials such as aluminum and copper. In contrast, precious metals prices rose sharply, particularly gold, which was supported by strong demand and record central bank buying in an environment of declining bond yields and global economic uncertainty.
Approximately 30% of the Fund was invested in commodities stocks, which also detracted from the Fund’s return. Energy detracted the most, led by oil and gas exploration and production companies, which posted disappointing earnings amid lower oil prices. Integrated oil and gas producers declined, as companies scaled back production and refinery maintenance costs increased. The energy equipment and services industry weakened on lower fracking equipment spending. In contrast, gold mining stocks bolstered equity returns, benefiting from higher gold prices and from consolidations, which are expected to deliver greater operational efficiency and cost savings. The agricultural and farm machinery industry contributed modestly amid optimism about a favorable crop-growing season and possible de-escalation of trade tensions.
Portfolio Information
ALLOCATION BY SECTOR AND INVESTMENT TYPE
Sector and Investment Type | Percent of Net Assets | |||
Energy Equities | 12.6 | % | ||
Specialty Chemicals Equities | 5.9 | |||
Industrial Metals Equities | 4.8 | |||
Agriculture Equities | 4.5 | |||
Precious Metals Equities | 2.1 | |||
Short-term | 70.6 | |||
Cash | 4.2 | |||
Other Assets, Less Liabilities | (4.7 | ) |
COMMODITY-LINKED FUTURES
Sector Exposure(a) | Percent of Net Assets | |||
Energy Futures | 29.4 | % | ||
Agriculture Futures | 17.1 | |||
Industrial Metals Futures | 10.7 | |||
Livestock Futures | 7.5 | |||
Precious Metals Futures | 5.4 |
(a) | Exposures are calculated as the current notional value of the futures contracts as a percentage of net assets. |
FUND SUMMARY | 7 |
Fund Summary as of October 31, 2019 | iShares® Gold Strategy ETF |
Investment Objective
TheiShares Gold Strategy ETF(the “Fund”) seeks to provide exposure, on a total return basis, to the price performance of gold. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception | 1 Year | Since Inception | |||||||||||||||||
Fund NAV | 23.74 | % | 10.95 | % | 23.74 | % | 15.72 | % | ||||||||||||
Fund Market | 23.29 | 10.81 | 23.29 | 15.52 | ||||||||||||||||
Bloomberg Composite Gold Index | 24.02 | 11.16 | 24.02 | 15.96 |
The inception date of the Fund was 6/6/18. The first day of secondary market trading was 6/8/18.
The Bloomberg Composite Gold Index is an unmanaged index comprised of exchange -traded gold futures contracts and one or more exchange-traded products backed by or linked to physical gold. The index is designed to track the price performance of gold.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/19) |
| | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/19) | | | Ending Account Value (10/31/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ 1,000.00 | $ 1,174.50 | $ 0.93 | $ 1,000.00 | $ 1,024.30 | $ 0.87 | 0.17 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information. |
8 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Fund Summary as of October 31, 2019 (continued) | iShares® Gold Strategy ETF |
Portfolio Management Commentary
The Fund advanced strongly for the reporting period, reflecting the rising price for gold. The Fund slightly trailed the broader gold market, as represented by the Bloomberg Composite Gold Index, due to its composition as a mix of gold futures and exchange traded products linked to or backed by gold.
The price of gold rallied strongly during the reporting period, climbing to more than $1,500 per ounce, its highest level since 2013. Demand for gold rose as institutional and individual investors sought a measure of protection from financial markets amid rising economic uncertainty related to slowing global growth and the intensifying trade dispute between the U.S. and China. Gold also benefited from rising demand as investor concern mounted about geopolitical events such as the Brexit negotiations and instability in the Middle East. This environment led many leading central banks to ease monetary policy, leading to interest rate reductions across developed market economies. Expectations of stimulative monetary policy often support gold prices, as increases in money supply tend to benefit assets with relatively fixed quantities. Following repeated interest rate cuts by the Fed, the U.S. dollar weakened against some currencies, further supporting gold prices. Gold is generally priced in U.S. dollars, and a declining U.S. dollar made gold cheaper for some investors outside the U.S.
Demand for gold was also supported by record central bank buying in the first half of 2019, following a strong year for central bank purchases in 2018, the most in any calendar year in almost half a century. Investment demand for gold also surged as holdings of gold-backed ETFs reached record high levels in the third quarter of 2019. Jewelry demand increased in the first half of 2019 due to robust Indian consumer purchases before declining during the third quarter after the price of gold rose sharply. Rising gold prices also brought greater mine supply and gold recycling activity, leading to a modest increase in total gold supply.
Portfolio Information
ALLOCATION BY INVESTMENT TYPE
Investment Type | Percent of Net Assets | |||
Money Market Funds | 72.0 | % | ||
U. S. Treasury Obligations | 4.7 | |||
Grantor Trust | 20.3 | |||
Cash | 2.5 | |||
Other assets, less liabilities | 0.5 |
COMMODITY-LINKED FUTURES
Sector Exposure(a) | Percent of Net Assets | |||
Gold Futures | 75.6 | % |
(a) | Exposures are calculated as the current notional value of the futures contracts as a percentage of net assets. |
FUND SUMMARY | 9 |
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 iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
10 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Schedule of Investments October 31, 2019 | iShares® Bloomberg Roll Select Commodity Strategy ETF (Percentages shown are based on Net Assets) |
Security |
Par | Value | ||||||
Short-Term Investments | ||||||||
Commercial Paper — 82.4% | ||||||||
AT&T Inc., 1.90%, 12/11/19(a) | $ | 1,100,000 | $ | 1,097,678 | ||||
Banco Santander SA, 2.13%, 11/21/19(a) | 900,000 | 899,143 | ||||||
Banque et Caisse, 1.97%, 11/27/19(a) | 1,100,000 | 1,098,660 | ||||||
Bedford Row Funding Corp., | 1,100,000 | 1,095,873 | ||||||
CenterPoint Energy Inc., 2.03%, 11/18/19(a) | 1,100,000 | 1,098,928 | ||||||
Ciesco LLC, 1.91%, 12/04/19(a) | 271,000 | 270,538 | ||||||
Federation Des Caisses, 2.07%, 11/19/19(a) | 800,000 | 799,313 | ||||||
Hitachi Capital America Corp., 2.03%, 11/26/19(a) | 1,100,000 | 1,098,387 | ||||||
Hyundai Capital America, 2.28%, 11/01/19(a) | 1,000,000 | 999,944 | ||||||
Keurig Dr. Pepper Inc., 2.21%, 12/02/19(a) | 1,100,000 | 1,097,915 | ||||||
La Fayette Asset Securitization LLC, 2.04%, 12/03/19(a) | 1,100,000 | 1,098,182 | ||||||
Mitsubishi UFJ Trust & Banking Corp/NY, 1.81%, 11/06/19(a) | 1,000,000 | 999,699 | ||||||
Mont Blanc Capital Corp., 2.17%, 11/04/19(a) | 1,000,000 | 999,803 | ||||||
National Bank of Canada, 1.59%, 11/01/19(a) | 1,000,000 | 999,956 | ||||||
National Grid Electricity Transmission PLC, 2.09%, 11/08/19(a) | 1,100,000 | 1,099,490 | ||||||
National Securities Clearing Corp., 2.00%, 12/05/19(a) | 1,100,000 | 1,098,239 | ||||||
Nieuw Amsterdam Receivables Corp., 1.91%, 11/15/19(a) | 1,100,000 | 1,099,189 | ||||||
Nutrien Ltd., 2.23%, 11/25/19(a) | 1,200,000 | 1,198,308 | ||||||
Parker-Hannifin Corp., 2.27%, 11/25/19(a) | 900,000 | 898,948 | ||||||
Sumitomo Mitsui Banking Corp./New York, 2.01%, 12/10/19(a) | 500,000 | 498,956 | ||||||
United HealthCare Co., 1.72%, 11/13/19(a) | 1,100,000 | 1,099,318 |
Security | Par/ Shares | Value | ||||||
Commercial Paper (continued) | ||||||||
Versailles Com Paper LLC, 2.19%, 11/08/19(a) | $ | 500,000 | $ | 499,803 | ||||
Welltower Inc., 2.19%, 11/12/19(a) | 1,100,000 | 1,099,244 | ||||||
|
| |||||||
22,245,514 | ||||||||
U.S. Treasury Obligations — 4.7% | ||||||||
U.S. Treasury Bill | ||||||||
1.51%, 11/14/19(a) | 275,000 | 274,852 | ||||||
1.66%, 12/10/19(a) | 1,000,000 | 998,398 | ||||||
|
| |||||||
1,273,250 | ||||||||
Money Market Funds — 17.4% | ||||||||
BlackRock Cash Funds: Treasury, | 4,713,000 | 4,713,000 | ||||||
|
| |||||||
Total Short-Term Investments — 104.5% |
| 28,231,764 | ||||||
|
| |||||||
Total Investments in Securities — 104.5% |
| 28,231,764 | ||||||
Other Assets, Less Liabilities — (4.5)% |
| (1,227,608 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 27,004,156 | |||||
|
|
(a) | Rates are discount rates or a range of discount rates at the time of purchase. |
(b) | Affiliate of the Fund. |
(c) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 | | Net Activity | | Shares Held at 10/31/19 | | | Value at 10/31/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 7,904,926 | (3,191,926 | ) | 4,713,000 | $ | 4,713,000 | $ | 99,850 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
Bloomberg Roll Select Commodity Index | 1,360 | 12/18/19 | $ | 26,925 | $ | 187,103 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:
| ||||
Commodity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized appreciation on futures contracts(a) | $ | 187,103 | ||
|
|
(a) | Net cumulative appreciation (depreciation) on futures contracts are reported in the Consolidated Schedule of Investments. In the Consolidated Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
CONSOLIDATED SCHEDULES OF INVESTMENTS | 11 |
Consolidated Schedule of Investments (continued) October 31, 2019 | iShares® Bloomberg Roll Select Commodity Strategy ETF |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:
| ||||
Commodity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (2,887,749 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 360,845 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 34,231,337 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Commercial Paper | $ | — | $ | 22,245,514 | $ | — | $ | 22,245,514 | ||||||||
U.S. Treasury Obligations | — | 1,273,250 | — | 1,273,250 | ||||||||||||
Money Market Funds | 4,713,000 | — | — | 4,713,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4,713,000 | $ | 23,518,764 | $ | — | $ | 28,231,764 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 187,103 | $ | — | $ | — | $ | 187,103 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
12 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Schedule of Investments October 31, 2019 | iShares® Commodities Select Strategy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Agricultural & Farm Machinery — 1.8% | ||||||||
AGCO Corp. | 7,303 | $ | 627,027 | |||||
CNH Industrial NV | 114,671 | 1,251,061 | ||||||
Deere & Co. | 36,339 | 6,328,074 | ||||||
Lindsay Corp. | 1,245 | 117,540 | ||||||
Toro Co. (The) | 12,303 | 948,930 | ||||||
|
| |||||||
9,272,632 | ||||||||
Agricultural Products — 0.9% | ||||||||
Archer-Daniels-Midland Co. | 64,279 | 2,702,289 | ||||||
Bunge Ltd. | 16,337 | 882,198 | ||||||
Darling Ingredients Inc.(a) | 19,013 | 366,951 | ||||||
Ingredion Inc. | 7,701 | 608,379 | ||||||
|
| |||||||
4,559,817 | ||||||||
Aluminum — 0.1% | ||||||||
Alcoa Corp.(a) | 14,519 | 301,850 | ||||||
Constellium SE(a) | 9,312 | 124,129 | ||||||
Kaiser Aluminum Corp. | 1,252 | 134,064 | ||||||
|
| |||||||
560,043 | ||||||||
Coal & Consumable Fuels — 0.0% | ||||||||
Arch Coal Inc., Class A | 512 | 40,392 | ||||||
Cameco Corp. | 12,563 | 112,187 | ||||||
Peabody Energy Corp. | 2,440 | 25,693 | ||||||
|
| |||||||
178,272 | ||||||||
Copper — 0.3% | ||||||||
Freeport-McMoRan Inc. | 113,522 | 1,114,786 | ||||||
Southern Copper Corp. | 6,654 | 236,749 | ||||||
|
| |||||||
1,351,535 | ||||||||
Diversified Metals & Mining — 2.7% | ||||||||
BHP Group Ltd., ADR | 115,148 | 5,631,889 | ||||||
BHP Group PLC, ADR | 82,628 | 3,505,080 | ||||||
Compass Minerals International Inc. | 2,651 | 149,728 | ||||||
Materion Corp. | 1,596 | 90,717 | ||||||
Rio Tinto PLC, ADR | 77,892 | 4,051,163 | ||||||
Teck Resources Ltd., Class B(b) | 38,292 | 606,162 | ||||||
|
| |||||||
14,034,739 | ||||||||
Fertilizers & Agricultural Chemicals — 1.8% | ||||||||
CF Industries Holdings Inc. | 25,197 | 1,142,684 | ||||||
Corteva Inc.(a) | 86,429 | 2,279,997 | ||||||
FMC Corp. | 15,053 | 1,377,349 | ||||||
Mosaic Co. (The) | 40,970 | 814,484 | ||||||
Nutrien Ltd. | 66,114 | 3,159,588 | ||||||
Scotts Miracle-Gro Co. (The) | 4,547 | 456,473 | ||||||
Sociedad Quimica y Minera de Chile SA, ADR | 12,781 | 347,388 | ||||||
|
| |||||||
9,577,963 | ||||||||
Gold — 1.9% | ||||||||
Agnico Eagle Mines Ltd.(b) | 18,644 | 1,146,047 | ||||||
Barrick Gold Corp.(b) | 139,021 | 2,413,405 | ||||||
Cia. de Minas Buenaventura SAA, ADR | 17,637 | 270,552 | ||||||
Coeur Mining Inc.(a) | 18,844 | 104,019 | ||||||
Franco-Nevada Corp.(b) | 14,649 | 1,420,513 | ||||||
Kinross Gold Corp.(a) | 97,997 | 475,285 | ||||||
Kirkland Lake Gold Ltd. | 14,966 | 702,654 | ||||||
Newmont Goldcorp Corp. | 64,151 | 2,548,719 | ||||||
Royal Gold Inc. | 5,130 | 592,207 | ||||||
|
| |||||||
9,673,401 | ||||||||
Integrated Oil & Gas — 7.3% | ||||||||
BP PLC, ADR | 107,026 | 4,057,356 |
Security | Shares | Value | ||||||
Integrated Oil & Gas (continued) | ||||||||
Cenovus Energy Inc.(b) | 32,370 | $ | 274,821 | |||||
Chevron Corp. | 60,257 | 6,998,248 | ||||||
China Petroleum & Chemical Corp., ADR | 8,098 | 457,456 | ||||||
Ecopetrol SA, ADR(b) | 7,830 | 142,898 | ||||||
Eni SpA, ADR(b) | 40,373 | 1,222,898 | ||||||
Equinor ASA, ADR | 34,970 | 647,295 | ||||||
Exxon Mobil Corp. | 134,298 | 9,007,556 | ||||||
Imperial Oil Ltd.(b) | 7,505 | 186,649 | ||||||
Occidental Petroleum Corp. | 28,391 | 1,149,836 | ||||||
Petroleo Brasileiro SA, ADR | 42,521 | 690,541 | ||||||
Royal Dutch Shell PLC, Class A, ADR | 67,842 | 3,932,801 | ||||||
Royal Dutch Shell PLC, Class B, ADR | 59,442 | 3,464,874 | ||||||
Suncor Energy Inc. | 49,376 | 1,465,973 | ||||||
Total SA, ADR | 80,164 | 4,219,031 | ||||||
|
| |||||||
37,918,233 | ||||||||
Oil & Gas Drilling — 0.1% | ||||||||
Helmerich & Payne Inc. | 3,473 | 130,237 | ||||||
Patterson-UTI Energy Inc. | 6,390 | 53,165 | ||||||
Transocean Ltd.(a)(b) | 18,254 | 86,707 | ||||||
Valaris PLC(a)(b) | 6,211 | 25,527 | ||||||
|
| |||||||
295,636 | ||||||||
Oil & Gas Equipment & Services — 0.7% | ||||||||
Apergy Corp.(a) | 2,459 | 61,893 | ||||||
Archrock Inc. | 4,024 | 38,791 | ||||||
Baker Hughes Co. | 20,604 | 440,926 | ||||||
Cactus Inc., Class A(a) | 1,478 | 43,926 | ||||||
Core Laboratories NV | 1,408 | 62,008 | ||||||
Dril-Quip Inc.(a) | 1,148 | 47,091 | ||||||
Halliburton Co. | 27,803 | 535,208 | ||||||
Helix Energy Solutions Group Inc.(a) | 4,436 | 38,105 | ||||||
National Oilwell Varco Inc. | 12,249 | 277,073 | ||||||
Oceaneering International Inc.(a) | 3,105 | 43,967 | ||||||
Schlumberger Ltd. | 43,897 | 1,434,993 | ||||||
TechnipFMC PLC | 13,321 | 262,823 | ||||||
Tenaris SA, ADR | 7,494 | 152,128 | ||||||
|
| |||||||
3,438,932 | ||||||||
Oil & Gas Exploration & Production — 1.8% | ||||||||
Apache Corp. | 11,933 | 258,469 | ||||||
Cabot Oil & Gas Corp. | 13,280 | 247,539 | ||||||
Canadian Natural Resources Ltd. | 37,724 | 951,399 | ||||||
Chesapeake Energy Corp.(a)(b) | 35,796 | 47,967 | ||||||
Cimarex Energy Co. | 3,220 | 135,948 | ||||||
CNOOC Ltd., ADR | 5,102 | 757,851 | ||||||
CNX Resources Corp.(a)(b) | 6,021 | 50,757 | ||||||
Concho Resources Inc. | 6,382 | 430,913 | ||||||
ConocoPhillips | 35,237 | 1,945,082 | ||||||
Continental Resources Inc./OK(a) | 2,713 | 79,952 | ||||||
Devon Energy Corp. | 12,830 | 260,192 | ||||||
Diamondback Energy Inc. | 5,175 | 443,808 | ||||||
Encana Corp.(b) | 41,232 | 162,042 | ||||||
EOG Resources Inc. | 18,421 | 1,276,760 | ||||||
EQT Corp. | 8,110 | 87,101 | ||||||
Hess Corp. | 8,215 | 540,136 | ||||||
Kosmos Energy Ltd. | 11,390 | 70,618 | ||||||
Magnolia Oil & Gas Corp., Class A(a) | 3,220 | 31,620 | ||||||
Marathon Oil Corp. | 25,521 | 294,257 | ||||||
Matador Resources Co.(a) | 3,480 | 48,407 | ||||||
Murphy Oil Corp. | 4,892 | 100,922 | ||||||
Noble Energy Inc. | 15,180 | 292,367 |
CONSOLIDATED SCHEDULES OF INVESTMENTS | 13 |
Consolidated Schedule of Investments (continued) October 31, 2019 | iShares® Commodities Select Strategy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil & Gas Exploration & Production (continued) | ||||||||
Parsley Energy Inc., Class A | 8,923 | $ | 141,073 | |||||
PDC Energy Inc.(a) | 1,845 | 36,808 | ||||||
Pioneer Natural Resources Co. | 5,305 | 652,621 | ||||||
Southwestern Energy Co.(a)(b) | 16,992 | 34,834 | ||||||
WPX Energy Inc.(a) | 13,407 | 133,802 | ||||||
|
| |||||||
9,513,245 | ||||||||
Oil & Gas Refining & Marketing — 0.9% | ||||||||
Cosan Ltd., Class A(a) | 3,342 | 56,212 | ||||||
CVR Energy Inc. | 932 | 44,195 | ||||||
Delek U.S. Holdings Inc. | 2,391 | 95,521 | ||||||
HollyFrontier Corp. | 4,806 | 264,042 | ||||||
Marathon Petroleum Corp. | 20,895 | 1,336,235 | ||||||
PBF Energy Inc., Class A | 3,235 | 104,426 | ||||||
Phillips 66 | 14,237 | 1,663,166 | ||||||
Valero Energy Corp. | 13,153 | 1,275,578 | ||||||
World Fuel Services Corp. | 2,075 | 86,673 | ||||||
|
| |||||||
4,926,048 | ||||||||
Oil & Gas Storage & Transportation — 1.6% | ||||||||
Cheniere Energy Inc.(a) | 7,417 | 456,516 | ||||||
Enbridge Inc. | 64,238 | 2,338,906 | ||||||
Equitrans Midstream Corp. | 6,476 | 90,146 | ||||||
Golar LNG Ltd. | 3,179 | 43,775 | ||||||
Kinder Morgan Inc./DE | 61,795 | 1,234,664 | ||||||
ONEOK Inc. | 13,108 | 915,332 | ||||||
Pembina Pipeline Corp. | 16,222 | 570,365 | ||||||
Ship Finance International Ltd. | 2,559 | 37,029 | ||||||
Targa Resources Corp. | 7,389 | 287,284 | ||||||
TC Energy Corp. | 29,607 | 1,490,120 | ||||||
Ultrapar Participacoes SA, ADR | 24,018 | 112,164 | ||||||
Williams Companies Inc. (The) | 38,470 | 858,266 | ||||||
|
| |||||||
8,434,567 | ||||||||
Silver — 0.2% | ||||||||
Hecla Mining Co. | 38,358 | 88,224 | ||||||
Wheaton Precious Metals Corp.(b) | 34,918 | 980,148 | ||||||
|
| |||||||
1,068,372 | ||||||||
Specialty Chemicals — 5.9% | ||||||||
A Schulman Inc.(c) | 1,888 | 818 | ||||||
Albemarle Corp. | 12,232 | 742,972 | ||||||
Ashland Global Holdings Inc. | 6,985 | 540,429 | ||||||
Axalta Coating Systems Ltd.(a) | 23,959 | 706,551 | ||||||
Balchem Corp. | 3,734 | 377,918 | ||||||
Celanese Corp. | 14,281 | 1,730,143 | ||||||
DuPont de Nemours Inc. | 86,035 | 5,670,567 | ||||||
Ecolab Inc. | 28,892 | 5,549,286 | ||||||
Element Solutions Inc.(a) | 26,067 | 283,088 | ||||||
Ferro Corp.(a) | 9,406 | 104,689 | ||||||
GCP Applied Technologies Inc.(a)(b) | 6,188 | 127,844 | ||||||
HB Fuller Co. | 5,876 | 286,749 | ||||||
Ingevity Corp.(a) | 4,831 | 406,819 | ||||||
Innospec Inc. | 2,826 | 258,183 | ||||||
International Flavors & Fragrances Inc. | 12,323 | 1,503,529 | ||||||
Livent Corp.(a) | 16,847 | 115,570 | ||||||
Minerals Technologies Inc. | 4,047 | 200,124 | ||||||
NewMarket Corp. | 852 | 413,638 | ||||||
PolyOne Corp. | 8,872 | 284,348 | ||||||
PPG Industries Inc. | 27,270 | 3,412,022 | ||||||
Quaker Chemical Corp.(b) | 1,488 | 227,485 | ||||||
RPM International Inc. | 14,965 | 1,083,915 | ||||||
Sensient Technologies Corp. | 4,884 | 305,543 |
Security | Shares/ Par | Value | ||||||
Specialty Chemicals (continued) | ||||||||
Sherwin-Williams Co. (The) | 9,476 | $ | 5,423,304 | |||||
Stepan Co. | 2,317 | 226,417 | ||||||
WR Grace & Co. | 6,470 | 429,932 | ||||||
|
| |||||||
30,411,883 | ||||||||
Steel — 1.6% | ||||||||
Allegheny Technologies Inc.(a) | 9,865 | 207,264 | ||||||
ArcelorMittal(b) | 50,070 | 742,037 | ||||||
Carpenter Technology Corp. | 3,729 | 182,795 | ||||||
Cleveland-Cliffs Inc.(b) | 21,129 | 152,763 | ||||||
Commercial Metals Co. | 9,227 | 178,358 | ||||||
Nucor Corp. | 23,720 | 1,277,322 | ||||||
POSCO, ADR(b) | 22,103 | 992,646 | ||||||
Reliance Steel & Aluminum Co. | 5,215 | 605,149 | ||||||
Steel Dynamics Inc. | 17,183 | 521,676 | ||||||
Ternium SA, ADR | 4,147 | 82,898 | ||||||
U.S. Steel Corp.(b) | 13,359 | 153,762 | ||||||
Vale SA, ADR(a) | 248,085 | 2,912,518 | ||||||
Warrior Met Coal Inc. | 4,035 | 78,602 | ||||||
Worthington Industries Inc. | 2,900 | 106,749 | ||||||
|
| |||||||
8,194,539 | ||||||||
|
| |||||||
Total Common Stocks — 29.6% |
| 153,409,857 | ||||||
|
| |||||||
Preferred Stocks |
| |||||||
Integrated Oil & Gas — 0.2% | ||||||||
Petroleo Brasileiro SA, Preference Shares, ADR | 71,125 | 1,073,276 | ||||||
|
| |||||||
Steel — 0.1% | ||||||||
Gerdau SA, Preference Shares, ADR | 82,496 | 271,412 | ||||||
|
| |||||||
Total Preferred Stocks — 0.3% |
| 1,344,688 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Certificates of Deposit — 7.5% | ||||||||
Bank of Nova Scotia (The), 2.00%, 03/09/20 | $ | 10,000,000 | 10,004,109 | |||||
Mizuho Bank Ltd., 2.26%, 03/06/20 | 2,000,000 | 2,005,087 | ||||||
Mizuho Bank Ltd./New York, 2.17%, 03/09/20, (3 mo. LIBOR US + 0.100%)(d) | 3,000,000 | 3,000,301 | ||||||
Norinchukin Bank (The), 2.04%, 03/16/20 | 8,000,000 | 8,003,176 | ||||||
Oversea-Chinese Banking Corp. Ltd., 1.87%, 08/04/20 | 5,000,000 | 5,000,000 | ||||||
Royal Bank of Canada, 3.07%, 11/27/19 | 2,700,000 | 2,702,601 | ||||||
Sumitomo Mitsui Trust Bank Ltd./New York, 2.11%, 07/27/20 | 5,000,000 | 4,999,994 | ||||||
Toronto-Dominion Bank (The), 2.20%, 01/23/20 | 3,050,000 | 3,052,900 | ||||||
|
| |||||||
38,768,168 | ||||||||
Commercial Paper — 42.9% | ||||||||
AT&T Inc. | ||||||||
1.90%, 12/11/2019(e) | 7,000,000 | 6,985,222 | ||||||
2.38%, 11/06/2019(e) | 10,000,000 | 9,996,827 | ||||||
Banco Santander SA, 2.13%, 11/21/19(e) | 9,600,000 | 9,590,861 | ||||||
Banque et Caisse, 1.97%, 11/27/19(e) | 5,000,000 | 4,993,910 | ||||||
Barton Capital Corp., 2.09%, 01/07/20(e) | 10,300,000 | 10,264,474 | ||||||
Bedford Row Funding Corp., | 3,600,000 | 3,586,495 | ||||||
CenterPoint Energy Inc. | ||||||||
2.00%, 11/05/2019(e) | 2,000,000 | 1,999,460 | ||||||
2.03%, 11/18/2019(e) | 5,000,000 | 4,995,125 | ||||||
DBS Bank Ltd., 1.96%, 04/20/20 | 4,800,000 | 4,758,468 |
14 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Schedule of Investments (continued) October 31, 2019 | iShares® Commodities Select Strategy ETF (Percentages shown are based on Net Assets) |
Security | Par | Value | ||||||
Commercial Paper (continued) | ||||||||
Electricite de France SA, | $ | 10,000,000 | $ | 9,981,956 | ||||
Federation Des Caisses, 2.07%, 11/19/19(e) | 1,550,000 | 1,548,668 | ||||||
Hitachi Capital America Corp. | ||||||||
1.99%, 11/19/2019(e) | 2,250,000 | 2,247,574 | ||||||
2.15%, 11/20/2019 | 1,000,000 | 998,868 | ||||||
Hyundai Capital America, | 1,000,000 | 999,944 | ||||||
Keurig Dr. Pepper Inc., 2.21%, 12/02/19(e) | 10,000,000 | 9,981,049 | ||||||
Lloyds Banking Group PLC, 1.94%, 04/24/20(e) | 7,000,000 | 6,936,141 | ||||||
LMA Americas LLC, 2.03%, 03/13/20(e) | 10,000,000 | 9,932,293 | ||||||
Manhattan Asset Funding Co. LLC, 1.91%, 02/12/20(e) | 1,500,000 | 1,492,178 | ||||||
MetLife Short Term Funding LLC, 1.97%, 02/28/20(e) | 4,750,000 | 4,722,133 | ||||||
Mont Blanc Capital Corp., | 4,000,000 | 3,999,213 | ||||||
MUFG Bank Ltd., 2.02%, 02/13/20(e) | 3,000,000 | 2,983,112 | ||||||
National Grid Electricity Transmission PLC, 2.12%, 01/23/20 | 5,000,000 | 4,975,337 | ||||||
National Securities Clearing Corp., 2.00%, 12/05/19(e) | 10,500,000 | 10,483,187 | ||||||
Nieuw Amsterdam Receivables Corp., 1.91%, 11/15/19(e) | 7,500,000 | 7,494,469 | ||||||
Nutrien Ltd. | ||||||||
2.23%, 11/25/2019(e) | 12,000,000 | 11,983,083 | ||||||
2.24%, 12/16/2019(e) | 7,000,000 | 6,981,807 | ||||||
Old Line Funding LLC, 2.19%, 01/03/20(e) | 5,000,000 | 4,984,409 | ||||||
Parker-Hannifin Corp., 2.27%, 11/25/19(e) | 2,700,000 | 2,696,842 | ||||||
Reckitt Benckiser Treasury Services PLC, 2.04%, 01/16/20(e) | 4,000,000 | 3,984,027 | ||||||
Schlumberger Investment SA, 1.91%, 11/01/19(e) | �� | 5,000,000 | 4,999,790 | |||||
Skandin Enskilda Banken AG, 2.12%, 11/15/19(e) | 9,000,000 | 8,993,288 | ||||||
Sumitomo Mitsui Banking Corp./New York, 2.01%, 12/10/19(e) | 3,000,000 | 2,993,733 | ||||||
Suncor Energy Inc., 2.27%, 11/14/19(e) | 1,000,000 | 999,196 | ||||||
Toyota Motor Credit Corp., | 5,000,000 | 4,933,955 | ||||||
Versailles Com Paper LLC, 2.19%, 11/08/19(e) | 5,000,000 | 4,998,033 | ||||||
VW Credit Inc., 2.31%, 11/04/19(e) | 8,000,000 | 7,998,184 | ||||||
Walgreens Boots Alliance Inc. | ||||||||
2.13%, 02/07/2020(e) | 10,000,000 | 9,941,700 | ||||||
2.25%, 03/05/2020(e) | 3,000,000 | 2,977,740 |
Security | Par/ Shares | Value | ||||||
Commercial Paper (continued) | ||||||||
Welltower Inc., 2.19%, 11/12/19(e) | $ | 2,000,000 | $ | 1,998,625 | ||||
Westpac Banking Corp., 3.10%, 11/01/19(e) | 5,000,000 | 4,999,751 | ||||||
|
| |||||||
222,411,127 | ||||||||
U.S. Treasury Obligations — 4.7% | ||||||||
U.S. Treasury Bill | ||||||||
1.66%, 12/10/19(e) | 13,400,000 | 13,378,540 | ||||||
1.66%, 04/09/20(e) | 1,500,000 | 1,489,858 | ||||||
1.97%, 02/06/20(e) | 9,550,000 | 9,510,692 | ||||||
|
| |||||||
24,379,090 | ||||||||
Money Market Funds — 15.5% | ||||||||
BlackRock Cash Funds: Institutional, | 5,854,821 | 5,857,749 | ||||||
BlackRock Cash Funds: Treasury, | 74,727,000 | 74,727,000 | ||||||
|
| |||||||
80,584,749 | ||||||||
|
| |||||||
Total Short-Term Investments — 70.6% |
| 366,143,134 | ||||||
|
| |||||||
Total Investments in Securities — 100.5% |
| 520,897,679 | ||||||
Other Assets, Less Liabilities — (0.5)% | (2,524,820 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 518,372,859 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Variable or floating rate security. Rate shown is the rate in effect as of period-end. |
(e) | Rates are discount rates or a range of discount rates at the time of purchase. |
(f) | Affiliate of the Fund. |
(g) | Annualized 7-day yield as of period-end. |
(h) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 |
| Net Activity | | Shares Held at 10/31/19 |
| | Value at 10/31/19 |
| Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 13,372,232 | (7,517,411 | ) | 5,854,821 | $ | 5,857,749 | $ | 40,289 | (b) | $ | 106 | $ | 162 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 195,565,236 | (120,838,236 | ) | 74,727,000 | 74,727,000 | 2,044,699 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 80,584,749 | $ | 2,084,988 | $ | 106 | $ | 162 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent. |
CONSOLIDATED SCHEDULES OF INVESTMENTS | 15 |
Consolidated Schedule of Investments (continued) October 31, 2019 | iShares® Commodities Select Strategy ETF |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
Aluminum | 412 | 01/13/20 | $ | 18,046 | $ | (537,299 | ) | |||||||||
Brent Crude Oil | 763 | 11/29/19 | 45,490 | 907,163 | ||||||||||||
Cattle Feeder | 97 | 01/30/20 | 7,017 | 289,181 | ||||||||||||
Cocoa | 81 | 03/16/20 | 1,981 | 137,738 | ||||||||||||
Coffee | 91 | 03/19/20 | 3,598 | 55,408 | ||||||||||||
Copper | 151 | 12/15/21 | 22,287 | 232,999 | ||||||||||||
Corn | 1,345 | 12/14/20 | 27,287 | (222,132 | ) | |||||||||||
Cotton | 200 | 12/06/19 | 6,444 | (201,097 | ) | |||||||||||
Gasoline RBOB | 157 | 11/29/19 | 10,515 | 402,238 | ||||||||||||
Gold | 165 | 04/28/20 | 25,194 | 1,010,015 | ||||||||||||
KC HRW Wheat | 269 | 07/14/20 | 6,039 | (106,195 | ) | |||||||||||
Lead | 74 | 12/16/19 | 3,995 | (5,644 | ) | |||||||||||
Lean Hogs | 400 | 12/13/19 | 10,560 | 195,981 | ||||||||||||
Live Cattle | 433 | 04/30/20 | 21,468 | 1,773,350 | ||||||||||||
Low Sulphur Gasoil | 256 | 12/12/19 | 14,426 | (11,352 | ) | |||||||||||
Natural Gas | 307 | 03/27/20 | 7,184 | (438,142 | ) | |||||||||||
Nickel | 55 | 12/18/19 | 5,507 | (296,211 | ) | |||||||||||
NY Harbor ULSD | 147 | 03/31/20 | 11,231 | (269,117 | ) | |||||||||||
Silver | 29 | 12/27/19 | 2,620 | 237,342 | ||||||||||||
Soybean | 367 | 11/13/20 | 17,818 | 81,281 | ||||||||||||
Sugar | 604 | 04/30/20 | 8,510 | 386,752 | ||||||||||||
Wheat | 657 | 12/13/19 | 16,712 | 673,588 | ||||||||||||
WTI Crude Oil | 1,182 | 03/20/20 | 63,391 | 1,334,872 | ||||||||||||
Zinc | 94 | 12/18/19 | 5,891 | 371,272 | ||||||||||||
|
| |||||||||||||||
$ 6,001,991 | ||||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:
| ||||
Commodity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized appreciation on futures contracts(a) | $ | 8,089,180 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized depreciation on futures contracts(a) | $ | 2,087,189 | ||
|
|
(a) | Net cumulative appreciation (depreciation) on futures contracts are reported in the Consolidated Schedule of Investments. In the Consolidated Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:
| ||||
Commodity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (59,989,467 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 21,804,748 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 325,235,404 |
16 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Schedule of Investments (continued) October 31, 2019 | iShares® Commodities Select Strategy ETF |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 153,409,039 | $ | — | $ | 818 | $ | 153,409,857 | ||||||||
Preferred Stocks | 1,344,688 | — | — | 1,344,688 | ||||||||||||
Certificates of Deposit | — | 38,768,168 | — | 38,768,168 | ||||||||||||
Commercial Paper | — | 222,411,127 | — | 222,411,127 | ||||||||||||
U.S. Treasury Obligations | — | 24,379,090 | — | 24,379,090 | ||||||||||||
Money Market Funds | 80,584,749 | — | — | 80,584,749 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 235,338,476 | $ | 285,558,385 | $ | 818 | $ | 520,897,679 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 8,089,180 | $ | — | $ | — | $ | 8,089,180 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (2,087,189 | ) | — | — | (2,087,189 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 6,001,991 | $ | — | $ | — | $ | 6,001,991 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
CONSOLIDATED SCHEDULES OF INVESTMENTS | 17 |
Consolidated Schedule of Investments October 31, 2019 | iShares® Gold Strategy ETF (Percentages shown are based on Net Assets) |
Security | Shares/ Par | Value | ||||||
Grantor Trust | ||||||||
Grantor Trust — 20.3% | ||||||||
iShares Gold Trust(a)(b) | 121,011 | $ | 1,749,819 | |||||
|
| |||||||
Total Grantor Trust |
| 1,749,819 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
U.S. Treasury Obligations — 4.7% | ||||||||
U.S. Treasury Bill, 1.51%, 11/14/19(c) | $ | 400,000 | 399,785 | |||||
Money Market Funds — 72.0% | ||||||||
BlackRock Cash Funds: Treasury, | 6,201,000 | 6,201,000 | ||||||
|
| |||||||
Total Short-Term Investments — 76.7% |
| 6,600,785 | ||||||
|
| |||||||
Total Investments in Securities — 97.0% |
| 8,350,604 | ||||||
Other Assets, Less Liabilities — 3.0% |
| 261,441 | ||||||
|
| |||||||
Net Assets — 100.0% |
| $ | 8,612,045 | |||||
|
|
(a) | Affiliate of the Fund. |
(b) | Non-income producing security. |
(c) | Rates are discount rates or a range of discount rates at the time of purchase. |
(d) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the year ended October 31, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 10/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 10/31/19 | | | Value at 10/31/19 | | Income | | Net Realized | | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,592 | 6,199,408 | (b) | — | 6,201,000 | $ | 6,201,000 | $ | 14,612 | $ | — | $ | — | |||||||||||||||||||
iShares Gold Trust | 84,019 | 93,087 | (56,095 | ) | 121,011 | 1,749,819 | — | (538 | ) | 235,955 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 7,950,819 | $ | 14,612 | $ | (538 | ) | $ | 235,955 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
Gold | 43 | 12/27/19 | $ | 6,514 | $ | 166,129 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of October 31, 2019, the fair values of derivative financial instruments located in the Consolidated Statements of Assets and Liabilities were as follows:
| ||||
Commodity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Unrealized appreciation on futures contracts(a) | $ | 166,129 | ||
|
|
(a) | Net cumulative appreciation (depreciation) on futures contracts are reported in the Consolidated Schedule of Investments. In the Consolidated Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
18 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Schedule of Investments (continued) October 31, 2019 | iShares® Gold Strategy ETF |
For the year ended October 31, 2019, the effect of derivative financial instruments in the Consolidated Statements of Operations was as follows:
| ||||
Commodity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | 479,129 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 218,957 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 4,355,674 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2019. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Grantor Trust | $ | 1,749,819 | $ | — | $ | — | $ | 1,749,819 | ||||||||
U.S. Treasury Obligations | — | 399,785 | — | 399,785 | ||||||||||||
Money Market Funds | 6,201,000 | — | — | 6,201,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 7,950,819 | $ | 399,785 | $ | — | $ | 8,350,604 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 166,129 | $ | — | $ | — | $ | 166,129 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
CONSOLIDATED SCHEDULES OF INVESTMENTS | 19 |
Consolidated Statements of Assets and Liabilities
October 31, 2019
iShares Bloomberg Roll Select Commodity Strategy ETF | iShares Commodities Select Strategy ETF | iShares Gold Strategy ETF | ||||||||||
| ||||||||||||
ASSETS | ||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||
Unaffiliated(b) | $ | 23,518,764 | $ | 440,312,930 | $ | 399,785 | ||||||
Affiliated(c) | 4,713,000 | 80,584,749 | 7,950,819 | |||||||||
Cash | 1,003 | — | — | |||||||||
Foreign currency, at value(d) | — | 259 | — | |||||||||
Cash pledged: | ||||||||||||
Futures contracts | 1,058,000 | 21,986,763 | 215,000 | |||||||||
Receivables: | ||||||||||||
Investments sold | — | 1,277,724 | — | |||||||||
Securities lending income — Affiliated | — | 2,499 | — | |||||||||
Variation margin on futures contracts | — | — | 77,841 | |||||||||
Dividends | 5,515 | 410,626 | 7,746 | |||||||||
Tax reclaims | — | 12,695 | — | |||||||||
|
|
|
|
|
| |||||||
Total assets | 29,296,282 | 544,588,245 | 8,651,191 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Bank overdraft | — | 1,031,394 | 38,145 | |||||||||
Collateral on securities loaned, at value | — | 5,857,805 | — | |||||||||
Payables: | ||||||||||||
Investments purchased | 2,193,551 | 17,109,595 | — | |||||||||
Variation margin on futures contracts | 92,480 | 2,006,002 | — | |||||||||
Investment advisory fees | 6,095 | 210,590 | 1,001 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 2,292,126 | 26,215,386 | 39,146 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 27,004,156 | $ | 518,372,859 | $ | 8,612,045 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 26,284,616 | $ | 544,774,797 | $ | 7,491,518 | ||||||
Accumulated earnings (loss) | 719,540 | (26,401,938 | ) | 1,120,527 | ||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 27,004,156 | $ | 518,372,859 | $ | 8,612,045 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 600,000 | 16,300,000 | 150,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 45.01 | $ | 31.80 | $ | 57.41 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Securities loaned, at value | $ | — | $ | 5,401,724 | $ | — | ||||||
(b) Investments, at cost — Unaffiliated | $ | 23,517,260 | $ | 452,365,537 | $ | 399,732 | ||||||
(c) Investments, at cost — Affiliated | $ | 4,713,000 | $ | 80,584,177 | $ | 7,770,228 | ||||||
(d) Foreign currency, at cost | $ | — | $ | 259 | $ | — |
See notes to financial statements.
20 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Statements of Operations
Year Ended October 31, 2019
iShares Bloomberg Roll Select Commodity Strategy ETF | iShares Commodities Select Strategy ETF | iShares Gold Strategy ETF | ||||||||||||||
| ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | — | $ | 4,328,380 | $ | — | ||||||||||
Dividends — Affiliated | 99,850 | 2,044,699 | 14,612 | |||||||||||||
Interest — Unaffiliated | 763,650 | 5,439,336 | 83,916 | |||||||||||||
Securities lending income — Affiliated — net | — | 40,289 | — | |||||||||||||
Foreign taxes withheld | — | (176,615 | ) | — | ||||||||||||
|
|
|
|
|
| |||||||||||
Total investment income | 863,500 | 11,676,089 | 98,528 | |||||||||||||
|
|
|
|
|
| |||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 97,374 | 2,000,528 | 13,980 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total expenses | 97,374 | 2,000,528 | 13,980 | |||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | (32,945 | ) | (2,149 | ) | (3,905 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
Total expenses after fees waived | 64,429 | 1,998,379 | 10,075 | |||||||||||||
|
|
|
|
|
| |||||||||||
Net investment income | 799,071 | 9,677,710 | 88,453 | |||||||||||||
|
|
|
|
|
| |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | 677 | (8,070,490 | ) | 87 | ||||||||||||
Investments — Affiliated | — | 106 | (538 | ) | ||||||||||||
In-kind redemptions — Unaffiliated | — | (3,223,922 | ) | — | ||||||||||||
Futures contracts | (2,887,749 | ) | (59,989,467 | ) | 479,129 | |||||||||||
Foreign currency transactions | — | 196 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | (2,887,072 | ) | (71,283,577 | ) | 478,678 | |||||||||||
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 4,057 | 5,028,289 | 123 | |||||||||||||
Investments — Affiliated | — | 162 | 235,955 | |||||||||||||
Futures contracts | 360,845 | 21,804,748 | 218,957 | |||||||||||||
Foreign currency translations | — | 15 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) | 364,902 | 26,833,214 | 455,035 | |||||||||||||
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) | (2,522,170 | ) | (44,450,363 | ) | 933,713 | |||||||||||
|
|
|
|
|
| |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,723,099 | ) | $ | (34,772,653 | ) | $ | 1,022,166 | ||||||||
|
|
|
|
|
|
See notes to financial statements.
CONSOLIDATED FINANCIAL STATEMENTS | 21 |
Consolidated Statements of Changes in Net Assets
iShares Bloomberg Roll Select Commodity Strategy ETF | iShares Commodities Select Strategy ETF | |||||||||||||||||||
| Year Ended 10/31/19 |
| | Period From 04/03/18 to 10/31/18 | (a)
| | Year Ended 10/31/19 |
| | Year Ended 10/31/18 | | |||||||||
| ||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 799,071 | $ | 540,685 | $ | 9,677,710 | $ | 9,105,327 | ||||||||||||
Net realized gain (loss) | (2,887,072 | ) | (2,480,399 | ) | (71,283,577 | ) | 63,034,081 | |||||||||||||
Net change in unrealized appreciation (depreciation) | 364,902 | (176,295 | ) | 26,833,214 | (45,275,635 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | (1,723,099 | ) | (2,116,009 | ) | (34,772,653 | ) | 26,863,773 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (644,782 | ) | — | (40,656,951 | ) | (19,895,785 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (11,234,784 | ) | 42,722,830 | (134,936,163 | ) | 462,814,807 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS | ||||||||||||||||||||
Total increase (decrease) in net assets | (13,602,665 | ) | 40,606,821 | (210,365,767 | ) | 469,782,795 | ||||||||||||||
Beginning of period | 40,606,821 | — | 728,738,626 | 258,955,831 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 27,004,156 | $ | 40,606,821 | $ | 518,372,859 | $ | 728,738,626 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
22 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Statements of Changes in Net Assets (continued)
iShares Gold Strategy ETF | ||||||||
| Year Ended 10/31/19 |
| | Period From 06/06/18 to 10/31/18 | (a)
| |||
| ||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 88,453 | $ | 27,494 | ||||
Net realized gain (loss) | 478,678 | (242,981 | ) | |||||
Net change in unrealized appreciation (depreciation) | 455,035 | (108,262 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 1,022,166 | (323,749 | ) | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (37,443 | ) | — | |||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 2,951,071 | 5,000,000 | ||||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase in net assets | 3,935,794 | 4,676,251 | ||||||
Beginning of period | 4,676,251 | — | ||||||
|
|
|
| |||||
End of period | $ | 8,612,045 | $ | 4,676,251 | ||||
|
|
|
|
(a) | Commencement of operations. |
(b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
CONSOLIDATED FINANCIAL STATEMENTS | 23 |
Consolidated Financial Highlights
(For a share outstanding throughout each period)
iShares Bloomberg Roll Select Commodity Strategy ETF | ||||||||||||||||
Period From | ||||||||||||||||
Year Ended | 04/03/18 | (a) | ||||||||||||||
10/31/19 | to 10/31/18 | |||||||||||||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 47.77 | $ | 50.00 | ||||||||||||
|
|
|
| |||||||||||||
Net investment income(b) | 1.05 | 0.58 | ||||||||||||||
Net realized and unrealized loss(c) | (3.05 | ) | (2.81 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net decrease from investment operations | (2.00 | ) | (2.23 | ) | ||||||||||||
|
|
|
| |||||||||||||
Distributions(d) | ||||||||||||||||
From net investment income | (0.76 | ) | — | |||||||||||||
|
|
|
| |||||||||||||
Total distributions | (0.76 | ) | — | |||||||||||||
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 45.01 | $ | 47.77 | ||||||||||||
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||
Based on net asset value | (4.19 | )% | (4.46 | )%(e) | ||||||||||||
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.28 | % | 0.28 | %(f) | ||||||||||||
|
|
|
| |||||||||||||
Total expenses after fees waived | 0.19 | % | 0.10 | %(f) | ||||||||||||
|
|
|
| |||||||||||||
Net investment income | 2.30 | % | 2.01 | %(f) | ||||||||||||
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 27,004 | $ | 40,607 | ||||||||||||
|
|
|
| |||||||||||||
Portfolio turnover rate(g) | 0 | % | 0 | %(e) | ||||||||||||
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
24 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Consolidated Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Commodities Select Strategy ETF | ||||||||||||||||||||
Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | Year Ended 10/31/15 | ||||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of year | $ | 37.18 | $ | 35.97 | $ | 32.41 | $ | 32.97 | $ | 50.68 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(a) | 0.76 | 0.63 | 0.31 | 0.16 | 0.26 | |||||||||||||||
Net realized and unrealized gain (loss)(b) | (3.04 | ) | 2.62 | 3.58 | (0.57 | ) | (17.35 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | (2.28 | ) | 3.25 | 3.89 | (0.41 | ) | (17.09 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions(c) | ||||||||||||||||||||
From net investment income | (3.10 | ) | (2.04 | ) | (0.33 | ) | (0.15 | ) | (0.61 | ) | ||||||||||
Return of capital | — | — | — | — | (0.01 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (3.10 | ) | (2.04 | ) | (0.33 | ) | (0.15 | ) | (0.62 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of year | $ | 31.80 | $ | 37.18 | $ | 35.97 | $ | 32.41 | $ | 32.97 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | (5.87 | )% | 9.29 | %(d) | 12.08 | % | (1.23 | )% | (33.88 | )% | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 2.32 | % | 1.66 | % | 0.93 | % | 0.51 | % | 0.68 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 518,373 | $ | 728,739 | $ | 258,956 | $ | 320,820 | $ | 253,857 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(e) | 32 | % | 167 | % | 44 | % | 43 | % | 76 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) | Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return would have been 9.06%. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
CONSOLIDATED FINANCIAL HIGHLIGHTS | 25 |
Consolidated Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Gold Strategy ETF | ||||||||||||||||
Period From | ||||||||||||||||
Year Ended | 06/06/18 | (a) | ||||||||||||||
10/31/19 | to 10/31/18 | |||||||||||||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 46.76 | $ | 50.00 | ||||||||||||
|
|
|
| |||||||||||||
Net investment income(b) | 0.82 | 0.27 | ||||||||||||||
Net realized and unrealized gain (loss)(c) | 10.20 | (3.51 | ) | |||||||||||||
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 11.02 | (3.24 | ) | |||||||||||||
|
|
|
| |||||||||||||
Distributions(d) | ||||||||||||||||
From net investment income | (0.37 | ) | — | |||||||||||||
|
|
|
| |||||||||||||
Total distributions | (0.37 | ) | — | |||||||||||||
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 57.41 | $ | 46.76 | ||||||||||||
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||
Based on net asset value | 23.74 | % | (6.48 | )%(e) | ||||||||||||
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.25 | % | 0.25 | %(f) | ||||||||||||
|
|
|
| |||||||||||||
Total expenses after fees waived | 0.18 | % | 0.19 | %(f) | ||||||||||||
|
|
|
| |||||||||||||
Net investment income | 1.58 | % | 1.45 | %(f) | ||||||||||||
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 8,612 | $ | 4,676 | ||||||||||||
|
|
|
| |||||||||||||
Portfolio turnover rate(g) | 47 | % | 13 | %(e) | ||||||||||||
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) | Not annualized. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
26 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Consolidated Financial Statements
1. | ORGANIZATION |
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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These consolidated financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
Bloomberg Roll Select Commodity Strategy | Non-diversified | |||
Commodities Select Strategy | Diversified | |||
Gold Strategy | Non-diversified |
Basis of Consolidation:The accompanying consolidated financial statements for each Fund include the accounts of its wholly-owned subsidiary in the Cayman Islands (each, a “Subsidiary”) that invests in certain “commodity-linked instruments” and cash and cash equivalents in accordance with each Fund’s investment objective. In compliance with Sub-chapter M of the Internal Revenue Code of 1986, as amended, each Fund may invest up to 25% of its total assets in its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated. Each Fund’s commodity-linked instruments held in its Subsidiary are intended to provide the Fund with exposure to applicable commodity markets or commodities consistent with current U.S. federal income tax laws applicable to investment companies such as the Fund. Each Subsidiary has the same investment objective as its Fund.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment- in-kind interest income, if any, are recognized daily on the accrual basis.
Foreign Currency Translation:The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes:The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of October 31, 2019, if any, are disclosed in the consolidated statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 27 |
Notes to Consolidated Financial Statements (continued)
Net income and realized gains from investments held by each Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s ordinary income and/or capital gains for that year.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Fixed-income investments are valued using the last available bid price or current market quotations provided by independent dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions. |
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its consolidated schedule of investments. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
28 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Consolidated Financial Statements (continued)
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of October 31, 2019, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the consolidated schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its consolidated schedule of investments. The market value of any securities on loan as of October 31, 2019 and the value of the related cash collateral are disclosed in the consolidated statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of October 31, 2019:
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received |
| Net Amount | ||||||
| ||||||||||||||||
Commodities Select Strategy | ||||||||||||||||
Barclays Bank PLC | $ | 12,536 | $ | 12,536 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 192,060 | 192,060 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 214,032 | 214,032 | — | — | ||||||||||||
Citadel Clearing LLC | 34,834 | 34,834 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 407,351 | 407,351 | — | — | ||||||||||||
Credit Suisse AG Dublin Branch | 775,760 | 775,760 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 459,894 | 459,894 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 1,975,801 | 1,975,801 | — | — | ||||||||||||
Jefferies LLC | 616,104 | 616,104 | — | — | ||||||||||||
JPMorgan Securities LLC | 482,131 | 482,131 | — | — | ||||||||||||
State Street Bank & Trust Company | 97,615 | 97,615 | — | — | ||||||||||||
UBS AG | 52,760 | 52,760 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 80,846 | 80,846 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 5,401,724 | $ | 5,401,724 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s consolidated statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts:The Funds invest in commodity futures contracts to gain exposure to the applicable commodities markets. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Securities deposited as initial margin, if any, are designated in the consolidated schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the consolidated statement of assets and liabilities.
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 29 |
Notes to Consolidated Financial Statements (continued)
Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the consolidated statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the consolidated statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
Bloomberg Roll Select Commodity Strategy | 0.28 | % | ||
Commodities Select Strategy | 0.48 | |||
Gold Strategy | 0.25 |
Expense Waivers:A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to waive a portion of its investment advisory fee for the iShares Bloomberg Roll Select Commodity Strategy ETF and iShares Commodities Select Strategy ETF through February 29, 2024 and February 28, 2025, respectively, in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other registered investment companies advised by BFA or its affiliates.
For the year ended October 31, 2019, BFA voluntarily waived its investment advisory fees for the iShares Bloomberg Roll Select Commodity Strategy ETF in the amount of $30,512.
BFA has contractually agreed to waive a portion of its investment advisory fee for the iShares Gold Strategy ETF through February 29, 2024 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other exchange-traded products sponsored by BFA or its affiliates, provided that the waiver be no greater than the Fund’s investment advisory fee of 0.25%.
Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.
Sub-Adviser: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 iShares Commodities Select Strategy ETF and its Subsidiary.
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
30 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Consolidated Financial Statements (continued)
Prior to January 1, 2019, each Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold, each Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its consolidated statement of operations. For the year ended October 31, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
Commodities Select Strategy | $ | 10,316 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the consolidated statement of operations.
7. | PURCHASES AND SALES |
For the year ended October 31, 2019, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Commodities Select Strategy | $ | 41,360,419 | $ | 45,523,929 | ||||
Gold Strategy | 588,285 | 743,388 |
For the year ended October 31, 2019, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Commodities Select Strategy | $ | 100,904,494 | $ | 141,632,059 | ||||
Gold Strategy | 689,004 | — |
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ consolidated financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2019, the following permanent differences attributable to realized gains (losses) from in-kind redemptions and the character of income (losses) from Subsidiary were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) | ||||||
Bloomberg Roll Select Commodity Strategy | $ | (2,767,958 | ) | $ | 2,767,958 | |||
Commodities Select Strategy | (63,910,565 | ) | 63,910,565 | |||||
Gold Strategy | (218,457 | ) | 218,457 |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 10/31/19 | Period Ended 10/31/18 | ||||
Bloomberg Roll Select Commodity Strategy | ||||||
Ordinary income | $ | 644,782 | $ — | |||
|
|
|
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 31 |
Notes to Consolidated Financial Statements (continued)
| ||||||||
iShares ETF | Year Ended 10/31/19 | Period Ended 10/31/18 | ||||||
| ||||||||
Commodities Select Strategy | ||||||||
Ordinary income | $ | 40,656,951 | $ | 19,895,785 | ||||
|
|
|
| |||||
Gold Strategy | ||||||||
Ordinary income | $ | 37,443 | $ | — | ||||
|
|
|
|
As of October 31, 2019, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | | Undistributed Ordinary Income | | | Non-expiring Capital Loss Carryforwards | (a) | | Net Unrealized Gains (Losses) | (b) | Total | ||||||
Bloomberg Roll Select Commodity Strategy | $ | 530,933 | $ | — | $ | 188,607 | $ | 719,540 | ||||||||
Commodities Select Strategy | 6,910,810 | (25,672,342 | ) | (7,640,406 | ) | (26,401,938 | ) | |||||||||
Gold Strategy | 773,754 | — | 346,773 | 1,120,527 |
(a) | Amounts available to offset future realized capital gains. |
(b) | 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 characterization of corporate actions. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of October 31, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Bloomberg Roll Select Commodity Strategy | $ | 28,230,260 | $ | 1,757 | $ | (253 | ) | $ | 1,504 | |||||||
Commodities Select Strategy | 534,540,084 | 6,986,237 | (20,863,542 | ) | (13,877,305 | ) | ||||||||||
Gold Strategy | 8,169,960 | 180,644 | — | 180,644 |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
Market Risk:Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s consolidated schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
Changes in market interest rates or economic conditions may affect the value and/or liquidity of fixed income investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. Securities with longer durations tend to be more sensitive to interest rate changes, usually making their prices more volatile than those of securities with shorter durations. Given the environment of historically low interest rates, a fund may be subject to a greater risk of price losses if interest rates rise.
32 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Notes to Consolidated Financial Statements (continued)
Credit Risk:Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its consolidated statement of assets and liabilities.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its consolidated schedule of investments.
The iShares Bloomberg Roll Select Commodity Strategy ETF and iShares Commodities Select Strategy ETF (“COMT”) have substantial exposure to certain commodity markets through investments in commodity-linked instruments and for COMT, through commodity-related equities as well. Any negative changes in commodity markets that may be due to changes in supply and demand for the commodities, market events, regulatory developments or other factors that the Funds cannot control could have an adverse impact on the Funds’ portfolios.
The iShares Gold Strategy ETF has substantial exposure to gold through its investments in gold investments and the Fund’s portfolio may be adversely affected by changes or trends in the price of gold, which historically has been volatile. Governments, central banks, or other large holders can influence the production and sale of gold, which may adversely affect the performance of the Fund.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||
Year Ended 10/31/19 | Period Ended 10/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
Bloomberg Roll Select Commodity Strategy | ||||||||||||||||
Shares sold | — | $ | — | 1,000,000 | $ | 50,058,752 | ||||||||||
Shares redeemed | (250,000 | ) | (11,234,784 | ) | (150,000 | ) | (7,335,922 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (250,000 | ) | $ | (11,234,784 | ) | 850,000 | $ | 42,722,830 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Commodities Select Strategy | ||||||||||||||||
Shares sold | 10,500,000 | $ | 334,026,227 | 13,900,000 | $ | 519,754,209 | ||||||||||
Shares redeemed | (13,800,000 | ) | (468,962,390 | ) | (1,500,000 | ) | (56,939,402 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (3,300,000 | ) | $ | (134,936,163 | ) | 12,400,000 | $ | 462,814,807 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Gold Strategy | ||||||||||||||||
Shares sold | 50,000 | $ | 2,951,071 | 100,000 | $ | 5,000,000 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the consolidated statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision. The appeal was fully briefed on January 18, 2019, and a hearing on Plaintiffs’ appeal took place on November 19, 2019.
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 33 |
Notes to Consolidated Financial Statements (continued)
12. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the consolidated financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the consolidated financial statements.
34 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of iShares U.S. ETF Trust and
Shareholders of iShares Bloomberg Roll Select Commodity Strategy ETF,
iShares Commodities Select Strategy ETF and iShares Gold Strategy ETF
Opinions on the Consolidated Financial Statements
We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of iShares Bloomberg Roll Select Commodity Strategy ETF, iShares Commodities Select Strategy ETF and iShares Gold Strategy ETF and their subsidiaries (three of the funds constituting iShares U.S. ETF Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2019, the related consolidated statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes, and the consolidated financial highlights for each of the periods indicated therein (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2019, the results of each of their operations and changes in each of their net assets for each of the periods indicated in the table below and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
iShares Bloomberg Roll Select Commodity Strategy ETF: consolidated statement of operations for the year ended October 31, 2019 and consolidated statement of changes in net assets for the year ended October 31, 2019 and for the period April 3, 2018 (commencement of operations) to October 31, 2018. |
iShares Commodities Select Strategy ETF: consolidated statement of operations for the year ended October 31, 2019 and consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2019. |
iShares Gold Strategy ETF: consolidated statement of operations for the year ended October 31, 2019 and consolidated statement of changes in net assets for the year ended October 31, 2019 and for the period June 6, 2018 (commencement of operations) to October 31, 2018. |
Basis for Opinions
These consolidated financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2019 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 19, 2019
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 35 |
Important Tax Information(unaudited)
For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended October 31, 2019 that qualified for the dividends-received deduction were as follows:
iShares ETF | Dividends-Received Deduction | |||
Commodities Select Strategy | 20.31 | % |
The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended October 31, 2019:
iShares ETF | Qualified Dividend Income | |||
Commodities Select Strategy | $ | 4,603,488 |
For the fiscal year ended October 31, 2019, the Funds hereby designate the following maximum amounts allowable as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations:
iShares ETF | Interest-Related Dividends | |||
Bloomberg Roll Select Commodity Strategy | $ | 777,305 | ||
Commodities Select Strategy | 5,767,665 | |||
Gold Strategy | 86,484 |
The Fund hereby designates the following amount of distributions from direct federal obligation interest for the fiscal year ended October 31, 2019:
iShares ETF | Federal Obligation Interest | |||
Bloomberg Roll Select Commodity Strategy | $ | 158,611 | ||
Commodities Select Strategy | 376,886 | |||
Gold Strategy | 49,995 |
The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
36 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
I. iShares Bloomberg Roll Select Commodity Strategy ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, 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 and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Fund:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.
The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with expectations relative to the Fund’s reference benchmark.
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 capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the 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, which were provided at the June17-19, 2019 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 37 |
Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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 and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with a similar investment strategy or investment mandate as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the 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 ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
38 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
II. iShares Commodities Select Strategy ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”), and theSub-Advisory Agreement between BFA and BlackRock International Limited (“BIL”) (the“Sub-Advisory Agreement”), on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, 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 and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Fund:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.
The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board also noted that BFA pays BIL for itssub-advisory services, and that there are no additional fees imposed on the Fund in respect of the services provided under theSub-Advisory Agreement.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with expectations relative to the Fund’s reference benchmark.
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 capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the 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 June17-19, 2019 meeting and throughout the year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 39 |
Board Review and Approval of Investment Advisory Contract (continued)
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory 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 its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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 and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with a similar investment strategy or investment mandate as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the 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 ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
40 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
III. iShares Gold Strategy ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Trustees) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At meetings on May 6, 2019 and May 17, 2019, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June17-19, 2019, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, 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 and their cumulative experience as 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 Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Fund:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.
The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2018, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with expectations relative to the Fund’s reference benchmark.
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 capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the 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, which were provided at the June17-19, 2019 meeting and throughout the year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 41 |
Board Review and Approval of Investment Advisory Contract (continued)
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory 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 its Affiliates:The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Adviser, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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 and other information considered.
Economies of Scale:The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services, noting that such costs have increased over the past year. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with a similar investment strategy or investment mandate as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services and BlackRock’s increased profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as
42 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
to bear no reasonable relationship to the services rendered and that could not have been the product ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
BOARD REVIEWAND APPROVALOF INVESTMENT ADVISORY CONTRACT | 43 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive aForm 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year |
| % 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 | ||||||||||||||||||||||||||||
Bloomberg Roll Select Commodity Strategy(a) | $ | 0.699757 | $ | — | $ | 0.058810 | $ | 0.758567 | 92 | % | — | % | 8 | % | 100 | % | ||||||||||||||||||||
Commodities Select Strategy(a) | 3.031768 | — | 0.071816 | 3.103584 | 98 | — | 2 | 100 | ||||||||||||||||||||||||||||
Gold Strategy(a) | 0.330049 | — | 0.044381 | 0.374430 | 88 | — | 12 | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Premium/Discount Information
The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest ask on the primary securities exchange on which shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the value of its portfolio holdings. The Market Price of a 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 the 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.
Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at iShares.com.
The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendarquarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.
iShares Bloomberg Roll Select Commodity Strategy ETF
Period Covered: April 05, 2018 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||||||||||
Greater than 6.0% | 1 | 0.27 | % | |||||||||||||
Greater than 0.5% and Less than 1.0% | 14 | 3.73 | ||||||||||||||
Greater than 0.0% and Less than 0.5% | 220 | 58.66 | ||||||||||||||
At NAV | 7 | 1.87 | ||||||||||||||
Less than 0.0% and Greater than –0.5% | 130 | 34.67 | ||||||||||||||
Less than –0.5% and Greater than –1.0% | 3 | 0.80 | ||||||||||||||
|
|
|
| |||||||||||||
375 | 100.00 | % | ||||||||||||||
|
|
|
|
44 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Supplemental Information(unaudited) (continued)
iShares Commodities Select Strategy ETF
Period Covered: October 16, 2014 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||||||||||
Greater than 6.0% | 1 | 0.08 | % | |||||||||||||
Greater than 1.0% and Less than 1.5% | 1 | 0.08 | ||||||||||||||
Greater than 0.5% and Less than 1.0% | 6 | 0.48 | ||||||||||||||
Greater than 0.0% and Less than 0.5% | 516 | 41.38 | ||||||||||||||
At NAV | 60 | 4.81 | ||||||||||||||
Less than 0.0% and Greater than –0.5% | 643 | 51.57 | ||||||||||||||
Less than –0.5% and Greater than –1.0% | 19 | 1.52 | ||||||||||||||
Less than –1.0% and Greater than –1.5% | 1 | 0.08 | ||||||||||||||
|
|
|
| |||||||||||||
1,247 | 100.00 | % | ||||||||||||||
|
|
|
|
iShares Gold Strategy ETF
Period Covered: June 08, 2018 through September 30, 2019
Premium/Discount Range | Number of Days | Percentage of Total Days | ||||||||||||||
Greater than 1.0% and Less than 1.5% | 2 | 0.61 | % | |||||||||||||
Greater than 0.5% and Less than 1.0% | 4 | 1.21 | ||||||||||||||
Greater than 0.0% and Less than 0.5% | 218 | 66.06 | ||||||||||||||
At NAV | 5 | 1.52 | ||||||||||||||
Less than 0.0% and Greater than –0.5% | 96 | 29.09 | ||||||||||||||
Less than –0.5% and Greater than –1.0% | 4 | 1.21 | ||||||||||||||
Less than –2.0% and Greater than –2.5% | 1 | 0.30 | ||||||||||||||
|
|
|
| |||||||||||||
330 | 100.00 | % | ||||||||||||||
|
|
|
|
SUPPLEMENTAL INFORMATION | 45 |
Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. 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 (the “BlackRock-advised Funds”) are organized into one complex ofopen-end equity, multi-asset, index and money market funds (the “BlackRock Multi-Asset Complex”), one complex ofclosed-end funds andopen-endnon-index fixed-income funds (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares Trust, and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 352 funds as of October 31, 2019. With the exception of Robert S. Kapito, Salim Ramji, Charles Park and Neal J. Andrews, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji, Mr. Park and Mr. Andrews is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free1-800-iShares(1-800-474-2737).
Interested Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Robert S. Kapito(a) (62) | Trustee (since 2011). | President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (49) | Trustee (since 2019). | Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Director of iShares, Inc. (since 2019); Trustee of iShares Trust (since 2019). |
(a) | Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
(b) | Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Trustees | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
Cecilia H. Herbert (70) | Trustee (since 2011); Independent Board Chair (since 2016). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Technology and Quality Committees of Stanford Health Care (since 2016); Member of the Audit Committee (since 2018) and Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); 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. | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (63) | Trustee (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Director of iShares, Inc. (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016) and Director of The Hanover Insurance Group, Inc. (since (2016). | |||
Richard L. Fagnani (64) | Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). |
46 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information (continued)
Independent Trustees(continued) | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Trustee | |||
John E. Kerrigan (64) | Trustee (since 2011); Nominating and Governance and Equity Plus Committee Chairs (since 2019). | Chief Investment Officer, Santa Clara University (since 2002). | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005). | |||
Drew E. Lawton (60) | Trustee (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). | |||
John E. Martinez (58) | Trustee (since 2011); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005). | Director of iShares, Inc. (since 2003); Trustee of iShares Trust (since 2003); Director of Cloudera Foundation (since 2017); Director of Reading Partners (2012-2016). | |||
Madhav V. Rajan (55) | Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Director of iShares, Inc. (since 2011); Trustee of iShares Trust (since 2011). |
Officers | ||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | ||
Armando Senra (48) | President (since 2019). | Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and LATAM iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006). | ||
Neal J. Andrews (53) | Treasurer and Chief Financial Officer (since 2019). | Managing Director, BlackRock, Inc. (since 2006); Chief Financial Officer of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2007). | ||
Charles Park (52) | Chief Compliance Officer (since 2011). | Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||
Deepa Damre (44) | Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||
Scott Radell (50) | Executive Vice President (since 2012). | Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||
Alan Mason (58) | Executive Vice President (since 2016). | Managing Director, BlackRock, Inc. (since 2009). | ||
Marybeth Leithead (56) | Executive Vice President (since 2019). | Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016). |
TRUSTEEAND OFFICER INFORMATION | 47 |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The iShares Funds’ FormsN-Q are available on the SEC’s website at sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at iShares.com.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
48 | 2019ISHARES ANNUAL REPORTTO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Equity | ||
ADR | American Depositary Receipt | |
Portfolio Abbreviations — Fixed Income | ||
LIBOR | London Interbank Offered Rate |
GLOSSARYOF TERMS USEDINTHIS REPORT | 49 |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2019 BlackRock, Inc. All rights reserved.iSHARES andBLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-1011-1019
![]() | ![]() |
Item 2. Code of Ethics.
The registrant has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to clarify an inconsistency in to whom persons covered by the code should report suspected violations of the code. The amendment clarifies that such reporting should be made to BlackRock’s General Counsel, and retains the alternative option of anonymous reporting following “whistleblower” policies. Othernon-material changes were also made in connection with this amendment. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, by calling1-800-474-2737.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that the registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the registrant’s audit committee are Richard L. Fagnani, John E. Kerrigan, 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 eleven series of the registrant for which the fiscalyear-end is October 31, 2019 (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 $157,950 for the fiscal year ended October 31, 2018 and $148,900 for the fiscal year ended October 31, 2019. |
(b) | Audit-Related Fees – There were no fees billed for the fiscal years ended October 31, 2018 and October 31, 2019 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (a) of this Item. |
(c) | Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning for the Funds were $41,591 for the fiscal year ended October 31, 2018 and $41,591 for the fiscal year ended October 31, 2019. These services related to the review of the Funds’ tax returns and excise tax calculations. |
(d) | All Other Fees – There were no other fees billed in each of the fiscal years ended October 31, 2018 and October 31, 2019 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item. |
(e) | (1) The registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the registrant or to any entity controlling, controlled by or under common control with the registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant. |
(2) There were no services described in (b) through (d) above that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-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, 2019 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees. |
(g) | The aggregatenon-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 $41,591 for the fiscal year ended October 31, 2018 and $41,591 for the fiscal year ended October 31, 2019. |
(h) | The registrant’s audit committee has considered whether the provision ofnon-audit services rendered to the registrant’s investment adviser and any Adviser Affiliate that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X, if any, is compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services, if any, does not compromise the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants
(a) The registrant is a listed issuer as defined in Rule10A-3 under the Exchange Act of 1934 and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The registrant’s audit committee members are Richard L. Fagnani, John E. Kerrigan, and Madhav V. Rajan.
(b) Not applicable.
Item 6. Investments.
(a) | Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.
Not applicable to the registrant.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable to the registrant.
Item 9. Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) The President (the registrant’s Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule30a-3(b) under the Investment Company Act of 1940 and Rules13a-15(b) or15d-15(b) under the Exchange Act of 1934.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies.
Not applicable to the registrant.
Item 13. Exhibits.
(a) (1) Code of Ethics is not filed as an exhibit; please refer to Item 2.
(a) (2) Section 302 Certifications are attached.
(a) (3) Not applicable.
(a) (4) Not applicable.
(b) Section 906 Certifications are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
iShares U.S. ETF Trust | ||
By: /s/ Armando Senra | ||
Armando Senra, President (Principal Executive Officer) | ||
Date: December 31, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ Armando Senra | ||
Armando Senra, President (Principal Executive Officer) | ||
Date: December 31, 2019 | ||
By: /s/ Neal Andrews | ||
Neal Andrews, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
Date: December 31, 2019 |