UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09102
iShares, Inc.
(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 Incorporated
2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21093
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 670-2000
Date of fiscal year end: October 31, 2020
Date of reporting period: October 31, 2020
Item 1. | Reports to Stockholders. |
Copies of the annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are attached.
OCTOBER 31, 2020 |
| 2020 Annual Report |
iShares, Inc.
· | iShares International High Yield Bond ETF | HYXU | Cboe BZX |
· | iShares J.P. Morgan EM Corporate Bond ETF | CEMB | Cboe BZX |
· | iShares J.P. Morgan EM High Yield Bond ETF | EMHY | Cboe BZX |
· | iShares J.P. Morgan EM Local Currency Bond ETF | LEMB | NYSE Arca |
· | iShares US & Intl High Yield Corp Bond ETF | GHYG | 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.
Dear Shareholder,
The 12-month reporting period as of October 31, 2020 has been a time of sudden change in global financial markets, as the emergence and spread of the coronavirus (or “COVID-19”) led to a vast disruption in the global economy and financial markets. Prior to the outbreak of the virus, U.S. equities and bonds both delivered solid returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.
After markets hit their lowest point of the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. Many equity indices neared or surpassed all-time highs in early September 2020 before retreating amid concerns about a second wave of infections. In the United States, large-capitalization stocks advanced, outperforming small-capitalization stocks, which declined marginally during the reporting period. International equities from developed economies declined, significantly lagging emerging market stocks, which rebounded sharply.
During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment, and posted solid returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) touched an all-time low. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.
The Fed took an accommodative monetary stance in late 2019 to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.
Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to continue as economic activity resumes. Several risks remain, however, including a potential resurgence of the coronavirus amid loosened restrictions, policy fatigue among governments already deep into deficit spending, and structural damage to the financial system from lengthy economic interruptions.
Overall, we favor a moderately positive stance toward risk, and in particular toward credit given the extraordinary central bank measures taken in recent months. This support extends beyond investment-grade corporates and into high-yield, leading to attractive opportunities in that end of the market. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments. We remain neutral on equities overall while favoring emerging market stocks and tilting toward the quality factor for its resilience.
In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of October 31, 2020
| ||||
6-Month | 12-Month | |||
U.S. large cap equities | 13.29% | 9.71% | ||
U.S. small cap equities | 18.13 | (0.14) | ||
International equities | 8.57 | (6.86) | ||
Emerging market equities | 20.96 | 8.25 | ||
3-month Treasury bills | 0.06 | 0.92 | ||
U.S. Treasury securities | (1.63) | 8.92 | ||
U.S. investment grade bonds | 1.27 | 6.19 | ||
Tax-exempt municipal bonds | 4.87 | 3.55 | ||
U.S. high yield bonds | 10.73 | 3.42 | ||
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
|
2 | THIS PAGE IS NOT PART OF YOUR FUND REPORT |
Page | ||||
2 | ||||
4 | ||||
5 | ||||
15 | ||||
15 | ||||
16 | ||||
Financial Statements | ||||
63 | ||||
65 | ||||
67 | ||||
70 | ||||
75 | ||||
85 | ||||
86 | ||||
87 | ||||
91 | ||||
93 | ||||
95 | ||||
96 |
iShares, Inc.
Global Bond Market Overview
Global investment-grade bonds advanced for the 12 months ended October 31, 2020 (“reporting period”). The Bloomberg Barclays Global Aggregate Index, a broad measure of global bond market performance, returned 5.63% in U.S. dollar terms for the reporting period.
Market disruption due to the coronavirus pandemic drove sharp volatility in bond prices, followed by a steady recovery after governments worldwide intervened to support fixed-income markets and economic activity. As the extent of the outbreak became evident in late February and early March 2020, uncertainty led investors to move out of stocks and into bonds, and global bond yields (which are inversely related to prices) declined. But the continued spread of the virus and related restrictions on economic activity led to a significant increase in yields, as investors became concerned that the pandemic-related downturn would restrict liquidity and limit the ability of sovereign and corporate borrowers to issue new bonds. However, the swift action of central banks helped stabilize credit markets and improve liquidity, and a gradual, but significant, recovery in bond prices followed.
U.S. bond prices followed the global pattern: an advance in the immediate aftermath of the pandemic, followed by a sharp decline and subsequent recovery, leading to a positive performance for the reporting period overall. In response to the economic downturn, the U.S. Federal Reserve (“Fed”) enacted two emergency decreases to short-term interest rates in March 2020. It further stabilized bond markets by implementing bond buying programs for U.S. Treasuries, mortgage-backed securities, and corporate bonds. Bond prices rose thereafter, driving Treasury yields to historic lows despite record issuance to fund government fiscal stimulus programs. Fed action, along with signs that defaults would be lower than anticipated, drove corporate bond prices higher beginning in late March 2020. In August 2020, the Fed revised its long-standing inflation policy, allowing it to exceed its 2% target in order to stimulate the economy.
European bonds also advanced, benefiting from efforts by the European Central Bank (“ECB”) to stabilize and provide liquidity for markets. In March 2020, the ECB instituted a €750 billion bond purchasing program that authorized purchases of government and corporate bonds. The ECB augmented this program with an additional €600 billion in June 2020, further bolstering the European bond market. To finance its recovery efforts, in October 2020 the E.U. issued its own large-scale bonds for the first time (previously most European debt was issued only by individual member states). Demand for the issuance was high, indicating significant investor appetite for E.U.-backed bonds.
Bonds in the Asia/Pacific region posted a modest return after a sharp decline in bond prices in March 2020 was followed by a relatively modest rebound. Japanese bond prices in particular declined amid a significant increase in issuance of government bonds to finance stimulus efforts. To support this influx of bond supply and improve market liquidity, the Bank of Japan increased its bond-buying program for both government and corporate bonds. Bonds in other parts of the Asia/Pacific region posted gains, however, as foreign investors in search of yield buoyed bond prices in South Korea, Malaysia, and Thailand. Emerging market bonds also advanced amid a strong economic recovery in China, which helped reassure yield-hungry investors that economic conditions were improving in the latter part of the reporting period.
4 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of October 31, 2020 | iShares® International High Yield Bond ETF |
Investment Objective
The iShares International High Yield Bond ETF (the “Fund”) seeks to track the investment results of an index composed of euro, British pound sterling and Canadian dollar-denominated, high yield corporate bonds, as represented by the Markit iBoxx® Global Developed Markets ex-US High Yield Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 3.00 | % | 3.94 | % | 3.32 | % | 3.00 | % | 21.29 | % | 32.39 | % | ||||||||||||||||
Fund Market | 2.81 | 3.84 | 3.31 | 2.81 | 20.75 | 32.22 | ||||||||||||||||||||||
Index | 3.54 | 4.32 | 3.54 | 3.54 | 23.54 | 34.72 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 4/3/12. The first day of secondary market trading was 4/3/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,130.30 | $ | 2.14 | $ | 1,000.00 | $ | 1,023.10 | $ | 2.03 | 0.40 | % |
(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 (366 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information. |
FUND SUMMARY | 5 |
Fund Summary as of October 31, 2020 (continued) | iShares® International High Yield Bond ETF |
Portfolio Management Commentary
International high-yield bonds recovered from a pandemic-driven decline to advance during the reporting period. Investor demand for higher-yield investments, notably in Europe, where government bonds traded at historically low interest rates, aided returns. The Fed further bolstered high-yield corporate bond gains as it included high-yield bonds in one of its bond-buying programs.
From a country perspective, euro-denominated high-yield corporate bonds in Italy contributed to the Index’s return. Although the country’s immediate response to the pandemic outbreak resulted in a 13.0% quarter-over-quarter decline in economic growth, the manufacturing sector rebounded rapidly. High-yield corporate bond issuers in the financials sector also advanced, benefiting from the Italian government’s move to guarantee up to €750 billion worth of loans extended to challenged companies.
High-yield U.S. corporate bonds, which represent U.S. multinational corporations with debt denominated in foreign currencies, recovered from March 2020 declines to further increase the Index’s return. The Fed’s bond-buying measures specifically supported fallen angels — previously high-quality issuers whose credit ratings were downgraded to high yield. Corporations also took advantage of broadly lower interest rates to issue record volumes of new high-yield bonds to pay off or refinance existing bonds and loans. However, uncertainties around the pandemic’s resurgence and the U.S. presidential election prompted a decline late in the reporting period. High-yield corporate bonds from France and the Netherlands also advanced, as wage subsidies and other relief programs helped buffer the impact of the early 2020 downturn.
From a bond quality perspective, bonds rated Ba, which represented more than half of the Index on average for the reporting period, contributed significantly to the Index’s return. Bonds holding lower-quality ratings also benefited the Index’s performance.
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Baa | 4.7 | % | ||
Ba | 57.7 | |||
B | 19.1 | |||
Caa | 7.6 | |||
Not Rated | 10.9 |
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region | | Percent of Total Investments | (a) | |
United States | 20.0 | % | ||
Italy | 17.1 | |||
United Kingdom | 11.1 | |||
France | 11.1 | |||
Germany | 10.1 | |||
Spain | 5.7 | |||
Luxembourg | 4.9 | |||
Netherlands | 4.1 | |||
Sweden | 3.2 | |||
Israel | 2.3 |
* | 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. |
6 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF |
Investment Objective
The iShares J.P. Morgan EM Corporate Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, emerging market corporate bonds, as represented by the J.P. Morgan CEMBI Broad Diversified Core Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 3.94 | % | 5.64 | % | 4.51 | % | 3.94 | % | 31.58 | % | 45.72 | % | ||||||||||||||||
Fund Market | 3.58 | 5.76 | 4.52 | 3.58 | 32.33 | 45.83 | ||||||||||||||||||||||
Index | 4.69 | 6.27 | 5.11 | 4.69 | 35.54 | 53.04 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 4/17/12. The first day of secondary market trading was 4/19/12.
Index Performance through May 31, 2017 reflects the performance of the Morningstar® Emerging Markets Corporate Bond IndexSM. Index performance beginning on June 1, 2017 reflects the performance of the J.P. Morgan CEMBI Broad Diversified 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 15 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,096.80 | $ | 2.64 | $ | 1,000.00 | $ | 1,022.60 | $ | 2.54 | 0.50 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (366 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information. |
FUND SUMMARY | 7 |
Fund Summary as of October 31, 2020 (continued) | iShares® J.P. Morgan EM Corporate Bond ETF |
Portfolio Management Commentary
U.S. dollar-denominated emerging market corporate bonds advanced during the reporting period. In addition to offering a viable alternative to investors seeking higher-yield investments, weakness in the U.S. dollar heightened the appeal of emerging market bonds. Although emerging market debt denominated in U.S. dollars avoids direct currency impacts, moves in the value of the U.S. dollar can affect it indirectly, especially when companies conduct business in local currency terms while issuing debt denominated in U.S. dollars.
U.S. dollar-denominated corporate and government-related bonds from China contributed the most to the Index’s return amid International Monetary Fund projections that China would be the only major economy to grow in 2020. This comparatively solid growth outlook drove strong demand for China’s bonds. To bolster demand, which softened after reaching record highs in August 2020, the government structured a $6 billion offering to make it easier for U.S. investors to participate. However, rising default levels among corporate bond issuers tempered gains.
Israeli bonds contributed to the Index’s return, as the Bank of Israel included corporate debt in its bond-buying program. A 12-year high in the Israeli shekel relative to the U.S. dollar further enhanced the performance of U.S. dollar-denominated debt. Corporate debt in Mexico also advanced, as a rebound in the value of the Mexican peso and persistent inflationary pressures broadly kept interest rates at an elevated level.
On the downside, Argentinian government bonds detracted. Shortly after restructuring debt on which the country defaulted, government restrictions on the country’s U.S. dollar reserves prompted a downturn in the new bonds. From a quality standpoint, bonds rated BBB, which are on the low end of investment grade, contributed to the Index’s return, followed by bonds rated BB, which are at the top of the high-yield scale.
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Aa | 4.6 | % | ||
A | 18.6 | |||
Baa | 32.7 | |||
Ba | 14.5 | |||
B | 8.9 | |||
Caa | 3.1 | |||
Ca | 0.1 | |||
Not Rated | 17.5 |
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region | | Percent of Total Investments | (a) | |
China | 8.8 | % | ||
Brazil | 6.3 | |||
Hong Kong | 5.5 | |||
Mexico | 5.4 | |||
Russia | 4.9 | |||
India | 4.9 | |||
Saudi Arabia | 4.6 | |||
United Arab Emirates | 4.6 | |||
Singapore | 4.4 | |||
South Korea | 4.4 |
* | 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. |
8 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF |
Investment Objective
The iShares J.P. Morgan EM High Yield Bond ETF (the “Fund”) (formerly the iShares Emerging Markets High Yield Bond ETF) seeks to track the investment results of an index composed of U.S. dollar-denominated, emerging market high yield sovereign and corporate bonds, as represented by the J.P. Morgan USD Emerging Markets High Yield Bond Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (2.08 | )% | 4.54 | % | 4.28 | % | (2.08 | )% | 24.84 | % | 43.25 | % | ||||||||||||||||
Fund Market | (2.07 | ) | 4.67 | 4.32 | (2.07 | ) | 25.64 | 43.72 | ||||||||||||||||||||
Index(a) | (1.60 | ) | 4.81 | 4.63 | (1.60 | ) | 26.46 | 47.45 | ||||||||||||||||||||
J.P. Morgan USD Emerging Markets High Yield Bond Index (b) | (1.22 | ) | N/A | N/A | (1.22 | ) | N/A | N/A |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 4/3/12. The first day of secondary market trading was 4/3/12.
(a) | Index performance through March 01, 2020 reflects the performance of the Morningstar® Emerging Markets High Yield Bond IndexSM which terminated on April 01, 2020. Index performance beginning on March 02, 2020 reflects the performance of the J.P. Morgan USD Emerging Markets High Yield Bond Index, which, effective as of March 02, 2020, replaced Morningstar® Emerging Markets High Yield Bond IndexSM as the underlying index of the fund. |
(b) | The inception date of the J.P. Morgan USD Emerging Markets High Yield Bond Index was July 27, 2018. The cumulative total return for this index for the period July 27, 2018 through October 31, 2020 was 6.84%. |
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 15 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,133.90 | $ | 2.52 | $ | 1,000.00 | $ | 1,022.80 | $ | 2.39 | 0.47 | % |
(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 (366 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information. |
FUND SUMMARY | 9 |
Fund Summary as of October 31, 2020 (continued) | iShares® J.P. Morgan EM High Yield Bond ETF |
Portfolio Management Commentary
Emerging market high-yield bonds declined for the reporting period as a retreat in high-yield government bonds outweighed gains in high-yield corporate bonds. Ripple effects from the pandemic were particularly challenging for already struggling emerging market countries, and five countries defaulted on or restructured distressed government debt in 2020. Alternatively, emerging market high-yield corporate bonds steadily advanced after decreasing sharply upon the onset of the pandemic.
Government bonds from Ecuador detracted the most from the Index’s return. Reduced oil prices, delayed fiscal reforms, and deferred interest payments on existing bonds contributed to a series of credit rating downgrades. When International Monetary Fund assistance was delayed by the pandemic, the cash-strapped government elected to make principal payments only and postpone interest payments. Additionally, a landslide that damaged two pipelines curtailed the country’s oil exports.
Lebanese government bonds further diminished the Index’s return. Political upheaval and an overwhelming debt load led to the country’s first-ever default on a bond payment in March 2020. The country defaulted again five months later following a large explosion in Beirut that prompted further civic unrest and led the government’s cabinet to resign.
Bonds from Brazil aided the Index’s return as both sovereign and corporate issues benefited from rising global demand for higher-yielding investments. Foreign investment flowed strongly to Brazilian corporations issuing U.S. dollar-denominated debt, as a sharp decline in the Brazilian real, which helped Brazil’s exporters, and relatively high yields increased the demand for Brazilian corporate debt. Similarly, U.S. dollar-denominated debt in Mexico contributed to the Index’s return. The Mexican government improved relations with business leaders, in part by announcing a large, privately funded infrastructure package.
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Baa | 1.1 | % | ||
Ba | 41.9 | |||
B | 31.2 | |||
Caa | 6.5 | |||
Ca | 3.5 | |||
C | 0.3 | |||
Not Rated | 15.5 |
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region | | Percent of Total Investments | (a) | |
Brazil | 19.0 | % | ||
Turkey | 11.0 | |||
Mexico | 8.6 | |||
China | 4.6 | |||
Argentina | 4.2 | |||
South Africa | 3.9 | |||
Egypt | 3.1 | |||
Oman | 2.9 | |||
Dominican Republic | 2.9 | |||
Hong Kong | 2.6 |
* | 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. |
10 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of October 31, 2020 | iShares® J.P. Morgan EM Local Currency Bond ETF |
Investment Objective
The iShares J.P. Morgan EM Local Currency Bond ETF (the “Fund”) seeks to track the investment results of an index composed of local currency denominated, emerging market sovereign bonds, as represented by the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | (4.20 | )% | 1.71 | % | 0.05 | % | (4.20 | )% | 8.83 | % | 0.45 | % | ||||||||||||||||
Fund Market | (4.52 | ) | 1.75 | 0.04 | (4.52 | ) | 9.06 | 0.35 | ||||||||||||||||||||
Index | (3.50 | ) | 2.37 | 0.55 | (3.50 | ) | 12.41 | 5.12 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.
Index performance through May 31, 2017 reflects the performance of the Bloomberg Barclays Emerging Markets Broad Local Currency Bond Index. Index performance beginning on June 1, 2017 reflects the performance of the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor 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 15 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period (a) | | | Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period (a) | | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,074.80 | $ | 1.56 | $ | 1,000.00 | $ | 1,023.60 | $ | 1.53 | 0.30 | % |
(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 (366 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information. |
FUND SUMMARY | 11 |
Fund Summary as of October 31, 2020 (continued) | iShares® J.P. Morgan EM Local Currency Bond ETF |
Portfolio Management Commentary
Emerging market sovereign bonds denominated in local currencies declined for the reporting period. High pandemic-related expenses, declining commodities prices, and sharp restrictions on tourism-related activity all weighed on the economies of emerging market countries, many of which also contended with rising local borrowing costs.
Bonds from Brazil, which entered 2020 with an already low economic growth rate and high government debt, were the largest detractors from the Index’s return. A steep decline in the Brazilian real relative to the U.S. dollar exacerbated the bonds’ drop as foreign investors pulled funds from the country. Political conflicts over whether to continue pre-pandemic budget reform measures raised questions among analysts about the government’s fiscal discipline.
Turkish bonds also detracted from the Index’s return, reflecting a steady decline in the Turkish lira relative to the U.S. dollar. As investors’ concerns about the independence of the central bank increased, the currency’s value waned, and foreign investors exited Turkish lira-denominated bonds. Russian bonds also weighed on the Index’s return, as persistently low oil prices contributed to a decline in the Russian ruble relative to the U.S. dollar, although precautions taken by the government helped support the country’s bonds.
On the upside, bonds from the Philippines advanced due to a robust central bank response to the economic slowdown. The Philippine central bank reduced its key lending rate from 4.0% to 2.25% and purchased nearly half of the government’s outstanding debt within the first seven months of 2020.
From a credit rating perspective, bonds with lower ratings declined significantly. This decline more than offset the contribution of Baa-rated bonds, which represented approximately 47% of the Index’s weight on average for the reporting period.
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Aa | 4.5 | % | ||
A | 30.0 | |||
Baa | 45.4 | |||
Ba | 15.1 | |||
B | 4.4 | |||
Not Rated | 0.6 |
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region | | Percent of Total Investments | (a) | |
China | 12.1 | % | ||
Indonesia | 7.7 | |||
Mexico | 7.0 | |||
Brazil | 6.1 | |||
Thailand | 4.7 | |||
Chile | 4.6 | |||
South Africa | 4.5 | |||
Malaysia | 4.5 | |||
Peru | 4.5 | |||
Romania | 4.5 |
* | 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. |
12 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Fund Summary as of October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF |
Investment Objective
The iShares US & Intl High Yield Corp Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar, euro, British pound sterling and Canadian dollar-denominated, high yield corporate bonds, as represented by the Markit iBoxx® Global Developed Markets High Yield Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | |||||||||||||||||||||||
Fund NAV | 2.04 | % | 5.02 | % | 4.57 | % | 2.04 | % | 27.77 | % | 46.74 | % | ||||||||||||||||
Fund Market | 2.06 | 4.91 | 4.57 | 2.06 | 27.10 | 46.70 | ||||||||||||||||||||||
Index | 1.99 | 5.17 | 4.72 | 1.99 | 28.65 | 48.46 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 4/3/12. The first day of secondary market trading was 4/5/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/20) | | | Ending Account Value (10/31/20) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | �� | ||||||||||
$ | 1,000.00 | $ | 1,102.30 | $ | 2.11 | $ | 1,000.00 | $ | 1,023.10 | $ | 2.03 | 0.40 | % |
(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 (366 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information. |
FUND SUMMARY | 13 |
Fund Summary as of October 31, 2020 (continued) | iShares® US & Intl High Yield Corp Bond ETF |
Portfolio Management Commentary
High-yield corporate bonds recovered from a pandemic-driven decline to advance for the reporting period. These bonds benefited from investors’ search for higher-yielding investments amid record-low interest rates on U.S. Treasury bonds. The Fed further bolstered high-yield corporate bond gains as it included high-yield bonds in one of its bond-buying programs while introducing sweeping programs to support the bond market.
Corporate bonds issued by U.S. companies led contributors to the Index’s return. The shift in market sentiment due to the Fed’s bond-buying measures especially benefited fallen angels — previously high-quality issuers whose credit ratings were downgraded to high yield — which contributed to increased demand for the broader high-yield bond universe.
U.S. corporations took advantage of broadly lower rates to issue record volumes of new high-yield bonds, and they used much of the proceeds to pay off or refinance existing bonds and loans. Robust demand allowed issuers to offer the new bonds at historically low yields. However, uncertainty around the pandemic’s resurgence prompted a decline in high-yield bond prices late in the reporting period.
High-yield bonds in Italy contributed modestly to the Index’s return. Although the country’s initial response to the pandemic resulted in a 13.0% quarter-over-quarter decline in economic growth, its manufacturing sector rebounded rapidly. High-yield corporate bond issuers in the financials sector gained, as they benefited from the Italian government’s move to guarantee up to €750 billion worth of loans extended to challenged companies.
High-yield corporate bonds from the Netherlands also advanced, as wage subsidies helped buffer the impact of the early 2020 economic downturn. From a bond quality perspective, bonds rated Ba, which represented approximately 48% of the Index on average for the reporting period, contributed the majority of the Index’s return.
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* | | Percent of Total Investments | (a) | |
Baa | 3.1 | % | ||
Ba | 50.8 | |||
B | 32.0 | |||
Caa | 9.5 | |||
Ca | 0.2 | |||
C | 0.1 | |||
Not Rated | 4.3 |
TEN LARGEST GEOGRAPHIC ALLOCATION
Country/Geographic Region | | Percent of Total Investments | (a) | |
United States | 67.7 | % | ||
Italy | 5.4 | |||
United Kingdom | 4.4 | |||
Germany | 4.2 | |||
France | 3.6 | |||
Canada | 3.1 | |||
Netherlands | 1.9 | |||
Luxembourg | 1.7 | |||
Spain | 1.5 | |||
Israel | 1.4 |
* | 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. |
14 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees 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.
ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES | 15 |
October 31, 2020 | iShares® International High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Corporate Bonds & Notes | ||||||||||||
Austria — 0.3% | ||||||||||||
ams AG, 6.00%, 07/31/25 (Call 07/31/22)(a) | EUR | 100 | $ | 120,912 | ||||||||
|
| |||||||||||
Belgium — 0.3% | ||||||||||||
Telenet Finance Luxembourg Notes Sarl, 3.50%, 03/01/28 (Call 12/01/22)(a) | EUR | 100 | 119,799 | |||||||||
|
| |||||||||||
Canada — 1.1% | ||||||||||||
Brookfield Residential Properties Inc./Brookfield Residential U.S. Corp., 6.13%, 05/15/23 (Call 05/15/21)(a) | CAD | 50 | 37,757 | |||||||||
Parkland Corp. | CAD | 150 | 116,557 | |||||||||
5.75%, 09/16/24 (Call 09/16/21) | CAD | 100 | 77,155 | |||||||||
Quebecor Media Inc., 6.63%, 01/15/23(b) | CAD | 75 | 60,890 | |||||||||
Southern Pacific Resource Corp., 8.75%, 01/25/18(b)(c) | CAD | 50 | 0 | (d) | ||||||||
Videotron Ltd. | CAD | 150 | 119,436 | |||||||||
5.63%, 06/15/25 (Call 03/15/25) | CAD | 50 | 41,378 | |||||||||
5.75%, 01/15/26 (Call 09/15/21)(a) | CAD | 50 | 38,625 | |||||||||
|
| |||||||||||
491,798 | ||||||||||||
Cayman Islands — 0.2% | ||||||||||||
UPCB Finance VII Ltd., 3.63%, 06/15/29 (Call 06/15/22)(a) | EUR | 100 | 116,343 | |||||||||
|
| |||||||||||
Denmark — 0.8% | ||||||||||||
DKT Finance ApS, 7.00%, 06/17/23 (Call 06/17/21)(a) | EUR | 200 | 233,795 | |||||||||
TDC AS, 5.00%, 03/02/22 | EUR | 100 | 121,426 | |||||||||
|
| |||||||||||
355,221 | ||||||||||||
Finland — 1.4% | ||||||||||||
Nokia OYJ | EUR | 100 | 119,093 | |||||||||
2.00%, 03/11/26 (Call 12/11/25)(a) | EUR | 150 | 177,838 | |||||||||
2.38%, 05/15/25 (Call 02/15/25)(a) | EUR | 100 | 120,635 | |||||||||
Teollisuuden Voima OYJ | EUR | 100 | 107,355 | |||||||||
2.63%, 01/13/23(a) | EUR | 100 | 119,202 | |||||||||
|
| |||||||||||
644,123 | ||||||||||||
France — 10.7% | ||||||||||||
Altice France SA/France | EUR | 150 | 162,431 | |||||||||
3.38%, 01/15/28 (Call 09/15/22)(a) | EUR | 100 | 109,969 | |||||||||
4.13%, 01/15/29 (Call 09/15/23)(a) | EUR | 100 | 113,698 | |||||||||
5.88%, 02/01/27 (Call 02/01/22)(a) | EUR | 150 | 182,295 | |||||||||
Banijay Entertainment SASU, 3.50%, 03/01/25 (Call 03/01/22)(a) | EUR | 100 | 113,770 | |||||||||
Casino Guichard Perrachon SA | EUR | 200 | 178,779 | |||||||||
4.50%, 03/07/24 (Call 12/04/23)(a) | EUR | 100 | 94,767 | |||||||||
4.56%, 01/25/23(a) | EUR | 100 | 109,692 | |||||||||
CMA CGM SA | EUR | 100 | 106,757 | |||||||||
7.50%, 01/15/26 (Call 01/15/23)(a) | EUR | 100 | 112,482 | |||||||||
Elis SA | EUR | 100 | 108,127 | |||||||||
1.63%, 04/03/28 (Call 01/03/28)(a) | EUR | 100 | 107,384 | |||||||||
1.75%, 04/11/24 (Call 01/11/24)(a) | EUR | 100 | 114,265 | |||||||||
Faurecia SE | EUR | 100 | 112,355 | |||||||||
2.63%, 06/15/25 (Call 06/15/21)(a) | EUR | 150 | 174,617 | |||||||||
3.13%, 06/15/26 (Call 06/15/22)(a) | EUR | 100 | 117,526 | |||||||||
Getlink SE, 3.50%, 10/30/25 | EUR | 100 | 116,599 |
Security | Par (000) | Value | ||||||||||
France (continued) | ||||||||||||
Kapla Holding SAS, 3.38%, 12/15/26 (Call 12/15/22)(a) | EUR | 100 | $ | 106,029 | ||||||||
La Financiere Atalian SASU, 4.00%, 05/15/24 (Call 05/15/21)(a) | EUR | 100 | 100,776 | |||||||||
Loxam SAS | EUR | 200 | 216,854 | |||||||||
3.50%, 05/03/23 (Call 11/09/20)(a) | EUR | 100 | 113,265 | |||||||||
5.75%, 07/15/27 (Call 07/15/22)(a) | EUR | 100 | 102,335 | |||||||||
Orano SA | EUR | 100 | 113,671 | |||||||||
3.13%, 03/20/23 (Call 12/20/22)(a) | EUR | 100 | 118,820 | |||||||||
4.88%, 09/23/24 | EUR | 100 | 128,336 | |||||||||
Quatrim SASU, 5.88%, 01/15/24 (Call 11/15/21)(a) | EUR | 100 | 112,515 | |||||||||
RCI Banque SA, 2.63%, 02/18/30 (Call 02/18/25)(a)(e) | EUR | 100 | 112,049 | |||||||||
Renault SA | EUR | 100 | 113,865 | |||||||||
1.00%, 04/18/24 (Call 01/18/24)(a) | EUR | 100 | 110,615 | |||||||||
1.00%, 11/28/25 (Call 08/28/25)(a) | EUR | 100 | 109,310 | |||||||||
1.13%, 10/04/27 (Call 07/04/27)(a) | EUR | 100 | 101,394 | |||||||||
1.25%, 06/24/25 (Call 03/24/25)(a) | EUR | 100 | 108,129 | |||||||||
2.00%, 09/28/26 (Call 06/28/26)(a) | EUR | 100 | 109,806 | |||||||||
Rexel SA | EUR | 150 | 170,364 | |||||||||
2.75%, 06/15/26 (Call 06/15/22)(a) | EUR | 100 | 115,746 | |||||||||
SPCM SA, 2.63%, 02/01/29 | EUR | 100 | 116,081 | |||||||||
SPIE SA | EUR | 100 | 114,516 | |||||||||
3.13%, 03/22/24 (Call 09/22/23)(a) | EUR | 100 | 117,979 | |||||||||
Tereos Finance Groupe I SA, 7.50%, 10/30/25 (Call 10/29/22)(a) | EUR | 100 | 115,541 | |||||||||
Valeo SA, 3.25%, 01/22/24(a) | EUR | 100 | 122,873 | |||||||||
Vallourec SA | EUR | 100 | 67,852 | |||||||||
6.63%, 10/15/22 (Call 10/15/21)(a) | EUR | 100 | 68,689 | |||||||||
|
| |||||||||||
5,022,923 | ||||||||||||
Germany — 9.8% | ||||||||||||
ADLER Real Estate AG | EUR | 100 | 114,190 | |||||||||
1.50%, 04/17/22 (Call 03/17/22)(a) | EUR | 100 | 113,936 | |||||||||
3.00%, 04/27/26 (Call 02/27/26)(a) | EUR | 100 | 115,918 | |||||||||
Bertelsmann SE & Co. KGaA | EUR | 100 | 116,354 | |||||||||
3.50%, 04/23/75 (Call 04/23/27)(a)(e) | EUR | 100 | 117,397 | |||||||||
Cheplapharm Arzneimittel GmbH, 4.38%, 01/15/28 (Call 01/15/24)(a) | EUR | 150 | 173,069 | |||||||||
Commerzbank AG | EUR | 150 | 184,866 | |||||||||
4.00%, 03/30/27(a) | EUR | 100 | 123,483 | |||||||||
4.00%, 12/05/30 (Call 09/05/25)(a)(e) | EUR | 100 | 118,847 | |||||||||
Deutsche Bank AG | EUR | 125 | 145,716 | |||||||||
4.50%, 05/19/26(a) | EUR | 100 | 122,770 | |||||||||
5.63%, 05/19/31 (Call 02/19/26)(a)(e) | EUR | 200 | 250,305 | |||||||||
Deutsche Lufthansa AG, 0.25%, 09/06/24 | EUR | 50 | 50,060 | |||||||||
K+S AG | EUR | 100 | 107,836 | |||||||||
3.25%, 07/18/24 (Call 04/18/24)(a) | EUR | 100 | 107,140 | |||||||||
4.13%, 12/06/21(a) | EUR | 100 | 118,034 | |||||||||
LANXESS AG, 4.50%, 12/06/76 (Call 06/06/23)(a)(e) | EUR | 75 | 92,037 | |||||||||
METRO AG, 1.38%, 10/28/21(a) | EUR | 100 | 117,367 | |||||||||
Nidda BondCo GmbH, 5.00%, 09/30/25 (Call 09/30/21)(a) | EUR | 100 | 112,907 |
16 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® International High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Germany (continued) | ||||||||||||
Nidda Healthcare Holding GmbH, 3.50%, 09/30/24 (Call 09/30/21)(a) | EUR | 200 | $ | 225,392 | ||||||||
Schaeffler AG | EUR | 200 | 231,284 | |||||||||
3.38%, 10/12/28 (Call 07/12/28)(a) | EUR | 100 | 116,174 | |||||||||
Techem Verwaltungsgesellschaft 675 mbH, 2.00%, 07/15/25 (Call 01/15/22)(a) | EUR | 150 | 165,286 | |||||||||
thyssenkrupp AG | EUR | 150 | 170,430 | |||||||||
1.88%, 03/06/23 (Call 02/06/23)(a) | EUR | 150 | 162,206 | |||||||||
2.88%, 02/22/24 (Call 11/22/23)(a) | EUR | 200 | 215,861 | |||||||||
Vertical Holdco GmbH, 6.63%, 07/15/28 (Call 07/15/23)(a) | EUR | 100 | 120,084 | |||||||||
Vertical Midco GmbH, 4.38%, 07/15/27 (Call 07/15/23)(a) | EUR | 100 | 117,659 | |||||||||
ZF Europe Finance BV | EUR | 200 | 216,609 | |||||||||
2.50%, 10/23/27 (Call 07/23/27)(a) | EUR | 100 | 107,719 | |||||||||
3.00%, 10/23/29 (Call 07/23/29)(a) | EUR | 100 | 105,484 | |||||||||
ZF Finance GmbH, 3.75%, 09/21/28 (Call 06/21/28)(a) | EUR | 100 | 113,529 | |||||||||
ZF North America Capital Inc., | EUR | 100 | 117,022 | |||||||||
|
| |||||||||||
4,586,971 | ||||||||||||
Greece — 0.6% | ||||||||||||
Alpha Bank AE, 4.25%, 02/13/30 (Call 02/13/25)(a)(e) | EUR | 100 | 96,169 | |||||||||
National Bank Greece SA, 2.75%, 10/08/26 (Call 10/08/25)(a)(e) | EUR | 100 | 111,678 | |||||||||
Piraeus Bank SA, 9.75%, 06/26/29 (Call 06/26/24)(a)(e) | EUR | 100 | 91,149 | |||||||||
|
| |||||||||||
298,996 | ||||||||||||
Ireland — 1.9% | ||||||||||||
AIB Group PLC | EUR | 100 | 113,509 | |||||||||
2.88%, 05/30/31 (Call 05/30/26)(a)(e) | EUR | 100 | 117,145 | |||||||||
eircom Finance DAC | EUR | 100 | 111,350 | |||||||||
3.50%, 05/15/26 (Call 05/15/22)(a) | EUR | 100 | 116,130 | |||||||||
Smurfit Kappa Acquisitions ULC | EUR | 100 | 120,167 | |||||||||
2.88%, 01/15/26 (Call 10/15/25)(a) | EUR | 125 | 154,742 | |||||||||
Smurfit Kappa Treasury ULC, 1.50%, 09/15/27 (Call 06/14/27)(a) | EUR | 125 | 144,403 | |||||||||
|
| |||||||||||
877,446 | ||||||||||||
Israel — 2.2% | ||||||||||||
Teva Pharmaceutical Finance Netherlands II BV | EUR | 200 | 203,675 | |||||||||
1.25%, 03/31/23 (Call 12/31/22)(a) | EUR | 100 | 108,285 | |||||||||
1.63%, 10/15/28(a) | EUR | 150 | 140,329 | |||||||||
1.88%, 03/31/27 (Call 12/31/26)(a) | EUR | 100 | 98,721 | |||||||||
3.25%, 04/15/22 (Call 01/15/22) | EUR | 100 | 116,244 | |||||||||
4.50%, 03/01/25 (Call 12/01/24) | EUR | 100 | 114,789 | |||||||||
6.00%, 01/31/25 (Call 01/31/24) | EUR | 200 | 241,583 | |||||||||
|
| |||||||||||
1,023,626 | ||||||||||||
Italy — 16.5% | ||||||||||||
Atlantia SpA | EUR | 100 | 114,520 | |||||||||
1.88%, 07/13/27 (Call 04/13/27)(a) | EUR | 175 | 196,016 | |||||||||
Autostrade per l’Italia SpA | EUR | 100 | 114,155 | |||||||||
1.75%, 06/26/26(a) | EUR | 100 | 113,218 | |||||||||
1.88%, 09/26/29 (Call 06/26/29)(a) | EUR | 200 | 226,496 | |||||||||
4.38%, 09/16/25(a) | EUR | 100 | 130,133 | |||||||||
Banca IFIS SpA, 2.00%, 04/24/23(a) | EUR | 100 | 113,786 |
Security | Par (000) | Value | ||||||||||
Italy (continued) | ||||||||||||
Banca Monte dei Paschi di Siena SpA | EUR | 200 | $ | 234,387 | ||||||||
4.00%, 07/10/22(a) | EUR | 100 | 117,431 | |||||||||
5.38%, 01/18/28 (Call 01/18/23)(a)(e) | EUR | 100 | 90,021 | |||||||||
10.50%, 07/23/29(a) | EUR | 100 | 115,903 | |||||||||
Banca Popolare di Sondrio SCPA, 2.38%, 04/03/24(a) | EUR | 100 | 117,492 | |||||||||
Banco BPM SpA | EUR | 209 | 248,762 | |||||||||
1.75%, 01/28/25(a) | EUR | 100 | 118,301 | |||||||||
4.25%, 10/01/29 (Call 10/01/24)(a)(e) | EUR | 100 | 117,172 | |||||||||
4.38%, 09/21/27 (Call 09/21/22)(a)(e) | EUR | 100 | 116,595 | |||||||||
BPER Banca, 5.13%, 05/31/27 | EUR | 100 | 118,536 | |||||||||
Esselunga SpA, 0.88%, 10/25/23 | EUR | 100 | 116,100 | |||||||||
Fiat Chrysler Finance Europe SENC, 4.75%, 07/15/22(a) | EUR | 200 | 247,168 | |||||||||
Iccrea Banca SpA, 4.13%, 11/28/29 (Call 11/28/24)(a)(e) | EUR | 100 | 104,674 | |||||||||
Infrastrutture Wireless Italiane SpA | EUR | 100 | 116,861 | |||||||||
1.88%, 07/08/26 (Call 04/08/26)(a) | EUR | 150 | 181,264 | |||||||||
Intesa Sanpaolo SpA | EUR | 100 | 119,942 | |||||||||
2.93%, 10/14/30(a) | EUR | 100 | 115,080 | |||||||||
3.93%, 09/15/26(a) | EUR | 175 | 219,404 | |||||||||
6.63%, 09/13/23(a) | EUR | 200 | 263,804 | |||||||||
Leonardo SpA, 5.25%, 01/21/22 | EUR | 100 | 122,295 | |||||||||
Mediobanca Banca di Credito Finanziario SpA | EUR | 75 | 92,992 | |||||||||
5.75%, 04/18/23 | EUR | 50 | 63,883 | |||||||||
Rossini Sarl, 6.75%, 10/30/25 (Call 10/30/21)(a) | EUR | 100 | 121,254 | |||||||||
Saipem Finance International BV | EUR | 100 | 111,045 | |||||||||
3.75%, 09/08/23(a) | EUR | 100 | 118,084 | |||||||||
Telecom Italia SpA/Milano | EUR | 200 | 234,030 | |||||||||
2.50%, 07/19/23(a) | EUR | 100 | 120,222 | |||||||||
2.88%, 01/28/26 (Call 10/28/25)(a) | EUR | 100 | 120,449 | |||||||||
3.25%, 01/16/23(a) | EUR | 150 | 182,970 | |||||||||
3.63%, 01/19/24(a) | EUR | 207 | 255,018 | |||||||||
3.63%, 05/25/26(a) | EUR | 100 | 124,908 | |||||||||
4.00%, 04/11/24 (Call 01/11/24)(a) | EUR | 125 | 155,390 | |||||||||
5.25%, 02/10/22(a) | EUR | 100 | 123,579 | |||||||||
UniCredit SpA | EUR | 200 | 216,520 | |||||||||
2.73%, 01/15/32 (Call 01/15/27)(a)(e) | EUR | 200 | 215,715 | |||||||||
4.38%, 01/03/27 (Call 01/03/22)(a)(e) | EUR | 100 | 120,005 | |||||||||
6.95%, 10/31/22(a) | EUR | 150 | 193,902 | |||||||||
Unione di Banche Italiane SpA | EUR | 150 | 183,316 | |||||||||
4.45%, 09/15/27 (Call 09/15/22)(a)(e) | EUR | 150 | 180,889 | |||||||||
5.88%, 03/04/29 (Call 03/04/24)(a)(e) | EUR | 150 | 190,566 | |||||||||
Unipol Gruppo SpA | EUR | 175 | 210,546 | |||||||||
3.25%, 09/23/30 (Call 06/23/30)(a) | EUR | 100 | 117,512 | |||||||||
UnipolSai Assicurazioni SpA, 3.88%, 03/01/28(a) | EUR | 100 | 120,259 | |||||||||
Webuild SpA, 1.75%, 10/26/24(a) | EUR | 150 | 149,355 | |||||||||
|
| |||||||||||
7,731,925 | ||||||||||||
Japan — 1.8% | ||||||||||||
SoftBank Group Corp. | EUR | 250 | 289,846 | |||||||||
4.00%, 07/30/22 (Call 04/30/22)(a) | EUR | 100 | 120,088 | |||||||||
4.00%, 09/19/29 (Call 06/21/29)(a) | EUR | 100 | 116,045 |
SCHEDULE OF INVESTMENTS | 17 |
Schedule of Investments (continued) October 31, 2020 | iShares® International High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Japan (continued) | ||||||||||||
4.50%, 04/20/25 (Call 01/20/25)(a) | EUR | 100 | $ | 121,884 | ||||||||
5.00%, 04/15/28 (Call 01/16/28)(a) | EUR | 150 | 184,394 | |||||||||
|
| |||||||||||
832,257 | ||||||||||||
Luxembourg — 4.7% | ||||||||||||
Altice Financing SA, 3.00%, 01/15/28 (Call 01/15/23)(a) | EUR | 200 | 211,390 | |||||||||
Altice Finco SA, 4.75%, 01/15/28 (Call 10/15/22)(a) | EUR | 100 | 104,969 | |||||||||
Altice France Holding SA | EUR | 100 | 104,407 | |||||||||
8.00%, 05/15/27 (Call 05/15/22)(a) | EUR | 200 | 244,151 | |||||||||
ArcelorMittal, 0.95%, 01/17/23 (Call 10/17/22)(a) | EUR | 100 | 116,334 | |||||||||
ArcelorMittal SA | EUR | 100 | 115,899 | |||||||||
1.75%, 11/19/25 (Call 08/19/25)(a) | EUR | 100 | 116,074 | |||||||||
2.25%, 01/17/24 (Call 10/17/23)(a) | EUR | 100 | 119,672 | |||||||||
Garfunkelux Holdco 3 SA, 8.50%, 11/01/22 (Call 11/01/20)(a) | GBP | 100 | 129,090 | |||||||||
INEOS Finance PLC | EUR | 100 | 109,759 | |||||||||
2.88%, 05/01/26 (Call 05/01/22)(a) | EUR | 100 | 112,093 | |||||||||
INEOS Group Holdings SA, 5.38%, 08/01/24 (Call 08/01/21)(a) | EUR | 100 | 115,757 | |||||||||
Matterhorn Telecom SA, 3.13%, 09/15/26 (Call 09/15/22)(a) | EUR | 100 | 110,333 | |||||||||
SIG Combibloc Purchase Co. Sarl, 2.13%, 06/18/25(a) | EUR | 100 | 118,747 | |||||||||
Summer BC Holdco A Sarl, 9.25%, 10/31/27 (Call 10/31/22)(a) | EUR | 90 | 99,271 | |||||||||
Summer BC Holdco B Sarl, 5.75%, 10/31/26 (Call 10/31/22)(a) | EUR | 150 | 171,943 | |||||||||
Vivion Investments Sarl, 3.00%, 08/08/24(a) | EUR | 100 | 103,143 | |||||||||
|
| |||||||||||
2,203,032 | ||||||||||||
Netherlands — 4.0% | ||||||||||||
Lincoln Financing Sarl, 3.63%, 04/01/24 (Call 10/01/21)(a) | EUR | 200 | 221,297 | |||||||||
Nouryon Holding BV, 6.50%, 10/01/26 (Call 10/01/21)(a) | EUR | 100 | 118,523 | |||||||||
OCI NV, 3.13%, 11/01/24 (Call 11/01/21)(a) | EUR | 100 | 114,548 | |||||||||
PPF Telecom Group BV | EUR | 100 | 113,492 | |||||||||
3.25%, 09/29/27 (Call 06/29/27)(a) | EUR | 100 | 116,730 | |||||||||
3.50%, 05/20/24 (Call 02/20/24)(a) | EUR | 100 | 119,601 | |||||||||
Q-Park Holding I BV, 2.00%, 03/01/27 (Call 03/01/23)(a) | EUR | 100 | 99,305 | |||||||||
Sigma Holdco BV, 5.75%, 05/15/26 (Call 05/15/21)(a) | EUR | 100 | 110,940 | |||||||||
SNS Bank NV, 6.25%, 10/26/20(f) | EUR | 50 | 0 | (d) | ||||||||
Trivium Packaging Finance BV, 3.75%, 08/15/26 (Call 08/15/22)(a) | EUR | 100 | 114,929 | |||||||||
United Group BV | EUR | 100 | 108,651 | |||||||||
4.88%, 07/01/24 (Call 07/01/21)(a) | EUR | 100 | 116,629 | |||||||||
UPC Holding BV, 3.88%, 06/15/29 (Call 06/15/22)(a) | EUR | 100 | 112,284 | |||||||||
Ziggo Bond Co. BV, 3.38%, 02/28/30 (Call 02/15/25)(a) | EUR | 150 | 165,834 | |||||||||
Ziggo BV, 4.25%, 01/15/27 (Call 01/15/22)(a) | EUR | 180 | 215,288 | |||||||||
|
| |||||||||||
1,848,051 | ||||||||||||
Portugal — 1.5% | ||||||||||||
Banco Comercial Portugues SA, 4.50%, 12/07/27 (Call 12/07/22)(a)(e) | EUR | 100 | 110,153 | |||||||||
Caixa Geral de Depositos SA, 5.75%, 06/28/28 (Call 06/28/23)(a)(e) | EUR | 100 | 125,049 | |||||||||
EDP - Energias de Portugal SA | EUR | 100 | 112,613 | |||||||||
4.50%, 04/30/79 (Call 01/30/24)(a)(e) | EUR | 200 | 250,988 | |||||||||
Novo Banco SA, 8.50%, 07/06/28 (Call 07/06/23)(a)(e) | EUR | 100 | 98,430 | |||||||||
|
| |||||||||||
697,233 | ||||||||||||
Spain — 5.5% | ||||||||||||
Abanca Corp. Bancaria SA, 4.63%, 04/07/30 (Call 04/07/25)(a)(e) | EUR | 100 | 113,433 |
Security | Par (000) | Value | ||||||||||
Spain (continued) | ||||||||||||
Banco de Sabadell SA | EUR | 100 | $ | 111,275 | ||||||||
1.75%, 05/10/24(a) | EUR | 100 | 114,726 | |||||||||
5.38%, 12/12/28 (Call 12/12/23)(a)(e) | EUR | 100 | 119,127 | |||||||||
Bankia SA | EUR | 100 | 118,073 | |||||||||
1.13%, 11/12/26(a) | EUR | 100 | 117,407 | |||||||||
3.38%, 03/15/27 (Call 03/15/22)(a)(e) | EUR | 100 | 118,492 | |||||||||
3.75%, 02/15/29 (Call 02/15/24)(a)(e) | EUR | 100 | 122,457 | |||||||||
Cellnex Telecom SA | EUR | 100 | 114,837 | |||||||||
2.38%, 01/16/24 (Call 10/16/23)(a) | EUR | 100 | 122,326 | |||||||||
2.88%, 04/18/25 (Call 01/18/25)(a) | EUR | 100 | 125,925 | |||||||||
3.13%, 07/27/22(a) | EUR | 100 | 122,304 | |||||||||
Cirsa Finance International Sarl, 6.25%, 12/20/23 (Call 06/20/21)(a) | EUR | 100 | 103,217 | |||||||||
ContourGlobal Power Holdings SA, 3.38%, 08/01/23 (Call 08/01/21)(a) | EUR | 100 | 116,009 | |||||||||
El Corte Ingles SA, 3.00%, 03/15/24 (Call 10/15/21)(a) | EUR | 100 | 115,223 | |||||||||
Gestamp Funding Luxembourg SA, 3.50%, 05/15/23 (Call 05/15/21)(a) | EUR | 100 | 113,838 | |||||||||
Grifols SA | EUR | 150 | 171,280 | |||||||||
2.25%, 11/15/27 (Call 11/15/22)(a) | EUR | 100 | 114,572 | |||||||||
3.20%, 05/01/25 (Call 05/01/21)(a) | EUR | 100 | 115,839 | |||||||||
Grupo Isolux Corsan SA, Series B, 6.00%, 12/30/21 (Call 11/30/20)(c) | EUR | 141 | 82 | |||||||||
Ibercaja Banco SA, 2.75%, 07/23/30 (Call 07/23/25)(a)(e) | EUR | 100 | 105,680 | |||||||||
Repsol International Finance BV, 4.50%, 03/25/75 (Call 03/25/25)(a)(e) | EUR | 175 | 210,649 | |||||||||
|
| |||||||||||
2,586,771 | ||||||||||||
Sweden — 3.1% | ||||||||||||
Akelius Residential Property AB, 2.25%, 05/17/81 (Call 02/17/26)(a)(e) | EUR | 100 | 109,988 | |||||||||
Fastighets AB Balder, 3.00%, 03/07/78 (Call 03/07/23)(a)(e) | EUR | 100 | 114,383 | |||||||||
Intrum AB | EUR | 100 | 101,027 | |||||||||
3.13%, 07/15/24 (Call 07/15/21)(a) | EUR | 100 | 109,517 | |||||||||
3.50%, 07/15/26 (Call 07/15/22)(a) | EUR | 175 | 181,393 | |||||||||
4.88%, 08/15/25 (Call 08/15/22)(a) | EUR | 100 | 113,273 | |||||||||
Telefonaktiebolaget LM Ericsson, 1.88%, 03/01/24(a) | EUR | 100 | 122,060 | |||||||||
Verisure Holding AB, 3.50%, 05/15/23 (Call 05/08/21)(a) | EUR | 100 | 116,458 | |||||||||
Verisure Midholding AB, 5.75%, 12/01/23 (Call 12/01/20)(a) | EUR | 200 | 230,791 | |||||||||
Volvo Car AB, 2.00%, 01/24/25 (Call 10/24/24)(a) | EUR | 200 | 232,429 | |||||||||
|
| |||||||||||
1,431,319 | ||||||||||||
Switzerland — 0.4% | ||||||||||||
Dufry One BV | EUR | 100 | 101,503 | |||||||||
2.50%, 10/15/24 (Call 10/15/21)(a) | EUR | 100 | 104,909 | |||||||||
|
| |||||||||||
206,412 | ||||||||||||
United Kingdom — 10.7% | ||||||||||||
Algeco Global Finance PLC, 6.50%, 02/15/23 (Call 02/15/21)(a) | EUR | 100 | 112,757 | |||||||||
Arqiva Broadcast Finance PLC, 6.75%, 09/30/23 (Call 09/30/21)(a) | GBP | 150 | 198,869 | |||||||||
Cabot Financial Luxembourg SA, 7.50%, 10/01/23 (Call 10/01/21)(a) | GBP | 100 | 130,581 | |||||||||
eG Global Finance PLC, 4.38%, 02/07/25 (Call 05/15/21)(a) | EUR | 125 | 132,837 | |||||||||
FCE Bank PLC | EUR | 100 | 114,432 |
18 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® International High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United Kingdom (continued) | ||||||||||||
1.62%, 05/11/23(a) | EUR | 100 | $ | 113,139 | ||||||||
2.73%, 06/03/22(a) | GBP | 100 | 127,594 | |||||||||
Fiat Chrysler Automobiles NV | EUR | 150 | 182,941 | |||||||||
3.75%, 03/29/24(a) | EUR | 200 | 249,585 | |||||||||
3.88%, 01/05/26 (Call 10/05/25)(a) | EUR | 150 | 191,016 | |||||||||
4.50%, 07/07/28 (Call 04/07/28)(a) | EUR | 150 | 202,637 | |||||||||
Heathrow Finance PLC | GBP | 100 | 116,068 | |||||||||
4.75%, 03/01/24 (Call 12/01/23)(a) | GBP | 100 | 125,590 | |||||||||
International Consolidated Airlines Group SA, 1.50%, 07/04/27 | ||||||||||||
(Call 04/04/27)(a) | EUR | 100 | 85,617 | |||||||||
Jaguar Land Rover Automotive PLC | EUR | 100 | 98,083 | |||||||||
4.50%, 01/15/26(a) | EUR | 150 | 145,792 | |||||||||
5.00%, 02/15/22(a) | GBP | 100 | 126,766 | |||||||||
5.88%, 11/15/24 (Call 08/15/24)(a) | EUR | 100 | 106,989 | |||||||||
Marks & Spencer PLC, | GBP | 100 | 139,874 | |||||||||
Motion Bondco DAC, 4.50%, 11/15/27 | EUR | 100 | 95,154 | |||||||||
Rolls-Royce PLC | EUR | 100 | 105,045 | |||||||||
1.63%, 05/09/28 (Call 02/09/28)(a) | EUR | 100 | 98,443 | |||||||||
5.75%, 10/15/27 (Call 07/15/27)(a) | GBP | 100 | 129,429 | |||||||||
Stonegate Pub Co. Financing 2019 PLC, 8.25%, 07/31/25 | GBP | 100 | 120,340 | |||||||||
Thames Water Utilities Finance PLC, 5.75%, 09/13/30 (Call 09/13/22)(e) | GBP | 100 | 136,380 | |||||||||
Virgin Media Finance PLC, 3.75%, 07/15/30 (Call 07/15/25)(a) | EUR | 100 | 110,674 | |||||||||
Virgin Media Secured Finance PLC | GBP | 100 | 126,215 | |||||||||
5.00%, 04/15/27 (Call 04/15/22)(a) | GBP | 100 | 133,783 | |||||||||
5.25%, 05/15/29 (Call 05/15/24)(a) | GBP | 100 | 135,582 | |||||||||
6.00%, 01/15/25 (Call 01/15/21)(a)(g) | GBP | 85 | 115,833 | |||||||||
Vmed O2 UK Financing I PLC | EUR | 100 | 113,896 | |||||||||
4.00%, 01/31/29 (Call 01/31/24)(a) | GBP | 100 | 126,329 | |||||||||
Vodafone Group PLC | EUR | 300 | 353,582 | |||||||||
4.88%, 10/03/78(a)(e) | GBP | 100 | 137,289 | |||||||||
Series NC10, 3.00%, Series NC10, 08/27/80 (Call 05/27/30)(a)(e) | EUR | 150 | 170,727 | |||||||||
Series NC6, 2.63%, Series NC6, 08/27/80 | EUR | 100 | 114,856 | |||||||||
|
| |||||||||||
5,024,724 | ||||||||||||
United States — 19.4% | ||||||||||||
Adient Global Holdings Ltd., 3.50%, 08/15/24 (Call 05/15/24)(a) | EUR | 175 | 189,562 | |||||||||
Aramark International Finance Sarl, 3.13%, 04/01/25 (Call 04/01/21)(a) | EUR | 100 | 110,777 | |||||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. | EUR | 200 | 228,014 | |||||||||
4.75%, 07/15/27 (Call 07/15/22)(a) | GBP | 100 | 129,913 | |||||||||
Avantor Inc., 4.75%, 10/01/24 (Call 10/01/21)(a) | EUR | 100 | 120,439 | |||||||||
Avis Budget Finance PLC | EUR | 100 | 103,713 | |||||||||
4.75%, 01/30/26 (Call 09/30/21)(a) | EUR | 100 | 102,076 | |||||||||
Axalta Coating Systems Dutch Holding B BV, 3.75%, 01/15/25 (Call 01/15/21)(a) | EUR | 100 | 117,328 | |||||||||
Ball Corp. | EUR | 100 | 114,295 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
1.50%, 03/15/27 (Call 12/15/26) | EUR | 100 | $ | 114,307 | ||||||||
4.38%, 12/15/23 | EUR | 100 | 127,205 | |||||||||
Bausch Health Companies Inc., | EUR | 200 | 230,293 | |||||||||
Belden Inc., 3.88%, 03/15/28 (Call 03/06/23)(a) | EUR | 150 | 173,903 | |||||||||
Berry Global Inc., 1.00%, 01/15/25 (Call 10/15/24)(a) | EUR | 100 | 111,642 | |||||||||
Boxer Parent Co. Inc., 6.50%, 10/02/25 (Call 06/01/22)(a) | EUR | 100 | 121,035 | |||||||||
Carnival PLC, 1.00%, 10/28/29 (Call 07/28/29) | EUR | 100 | 65,086 | |||||||||
Catalent Pharma Solutions Inc., 2.38%, 03/01/28 (Call 03/01/23)(a) | EUR | 150 | 166,638 | |||||||||
Chemours Co. (The), 4.00%, 05/15/26 (Call 05/15/21) | EUR | 100 | 110,758 | |||||||||
Clarios Global LP/Clarios US Finance Co., 4.38%, 05/15/26 (Call 05/15/22)(a) | EUR | 125 | 145,722 | |||||||||
Coty Inc., 4.75%, 04/15/26 (Call 04/15/21)(a) | EUR | 100 | 89,394 | |||||||||
Crown European Holdings SA | EUR | 100 | 113,265 | |||||||||
2.25%, 02/01/23 (Call 11/01/22)(a) | EUR | 100 | 117,193 | |||||||||
2.63%, 09/30/24 (Call 03/30/24)(a) | EUR | 125 | 148,889 | |||||||||
2.88%, 02/01/26 (Call 08/01/25)(a) | EUR | 100 | 121,412 | |||||||||
Darling Global Finance BV, 3.63%, 05/15/26 (Call 05/15/21)(a) | EUR | 100 | 118,236 | |||||||||
Energizer Gamma Acquisition BV, 4.63%, 07/15/26 (Call 07/15/21)(a) | EUR | 100 | 119,005 | |||||||||
Ford Motor Credit Co. LLC | EUR | 100 | 107,174 | |||||||||
1.51%, 02/17/23 | EUR | 100 | 112,123 | |||||||||
1.74%, 07/19/24 | EUR | 100 | 109,646 | |||||||||
2.39%, 02/17/26 | EUR | 125 | 137,019 | |||||||||
3.02%, 03/06/24 | EUR | 100 | 115,065 | |||||||||
3.25%, 09/15/25 | EUR | 100 | 114,555 | |||||||||
4.54%, 03/06/25 | GBP | 100 | 129,288 | |||||||||
Hanesbrands Finance Luxembourg SCA, 3.50%, 06/15/24 (Call 03/15/24)(a) | EUR | 100 | 120,137 | |||||||||
International Game Technology PLC | EUR | 125 | 140,748 | |||||||||
3.50%, 06/15/26 (Call 06/15/22)(a) | EUR | 150 | 164,775 | |||||||||
IQVIA Inc. | EUR | 150 | 171,691 | |||||||||
2.88%, 09/15/25 (Call 09/15/21)(a) | EUR | 100 | 116,694 | |||||||||
3.25%, 03/15/25 (Call 03/15/21)(a) | EUR | 250 | 292,216 | |||||||||
Iron Mountain UK PLC, | GBP | 100 | 129,911 | |||||||||
Kraft Heinz Foods Co. | EUR | 100 | 118,476 | |||||||||
2.00%, 06/30/23 (Call 03/30/23)(a) | EUR | 100 | 119,961 | |||||||||
2.25%, 05/25/28 (Call 02/25/28)(a) | EUR | 100 | 120,526 | |||||||||
4.13%, 07/01/27 (Call 04/01/27)(a) | GBP | 100 | 141,506 | |||||||||
Levi Strauss & Co., 3.38%, 03/15/27 (Call 03/15/22) | EUR | 100 | 118,415 | |||||||||
Liberty Mutual Group Inc., 3.63%, 05/23/59 (Call 05/23/24)(a)(e) | EUR | 100 | 114,648 | |||||||||
LKQ European Holdings BV | EUR | 100 | 118,057 | |||||||||
4.13%, 04/01/28 (Call 04/01/23)(a) | EUR | 100 | 124,528 | |||||||||
LKQ Italia Bondco SpA, 3.88%, 04/01/24 (Call 01/01/24)(a) | EUR | 100 | 123,301 | |||||||||
Mauser Packaging Solutions Holding Co., 4.75%, 04/15/24 (Call 04/15/21)(a) | EUR | 100 | 114,388 | |||||||||
MPT Operating Partnership LP/MPT Finance Corp. | EUR | 100 | 121,868 | |||||||||
3.69%, 06/05/28 (Call 04/05/28) | GBP | 100 | 130,750 | |||||||||
4.00%, 08/19/22 (Call 05/19/22) | EUR | 100 | 120,903 | |||||||||
Netflix Inc. | EUR | 100 | 120,874 | |||||||||
3.63%, 05/15/27 | EUR | 150 | 188,537 |
SCHEDULE OF INVESTMENTS | 19 |
Schedule of Investments (continued) October 31, 2020 | iShares® International High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par/ Shares | Value | ||||||||||
United States (continued) | ||||||||||||
3.63%, 06/15/30 | EUR | 150 | $ | 190,311 | ||||||||
3.88%, 11/15/29(a) | EUR | 200 | 257,983 | |||||||||
4.63%, 05/15/29 | EUR | 100 | 135,169 | |||||||||
OI European Group BV, 3.13%, 11/15/24 | EUR | 100 | 116,291 | |||||||||
Refinitiv U.S. Holdings Inc., 4.50%, 05/15/26 | EUR | 150 | 182,454 | |||||||||
Scientific Games International Inc., 5.50%, 02/15/26 | EUR | 100 | 106,642 | |||||||||
Sealed Air Corp., 4.50%, 09/15/23 | EUR | 100 | 124,837 | |||||||||
Silgan Holdings Inc. | EUR | 100 | 113,187 | |||||||||
3.25%, 03/15/25 (Call 03/15/21) | EUR | 100 | 117,046 | |||||||||
Spectrum Brands Inc., 4.00%, 10/01/26 | EUR | 100 | 118,303 | |||||||||
Standard Industries Inc./NJ, 2.25%, 11/21/26 | EUR | 100 | 114,554 | |||||||||
Tenneco Inc., 5.00%, 07/15/24 (Call 07/15/21)(a) | EUR | 100 | 108,647 | |||||||||
WMG Acquisition Corp., 3.63%, 10/15/26 | EUR | 100 | 118,796 | |||||||||
|
| |||||||||||
9,072,100 | ||||||||||||
|
| |||||||||||
Total Corporate Bonds & Notes — 96.9% |
| 45,291,982 | ||||||||||
|
| |||||||||||
Common Stocks | ||||||||||||
South Africa — 0.0% | ||||||||||||
Sentry Holdings Ltd. Class A(f)(h) | 0 | (i) | 0 | (d) | ||||||||
|
| |||||||||||
United States — 0.0% | ||||||||||||
AMC Entertainment Inc.(f)(h) | 0 | (i) | 632 | |||||||||
|
| |||||||||||
Total Common Stocks — 0.0% | 632 | |||||||||||
|
| |||||||||||
Short-Term Investments | ||||||||||||
Money Market Funds — 0.1% | ||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.04%(j)(k) | 40 | 40,000 | ||||||||||
|
| |||||||||||
Total Short-Term Investments — 0.1% |
| 40,000 | ||||||||||
|
| |||||||||||
Total Investments in Securities — 97.0% |
| 45,332,614 | ||||||||||
Other Assets, Less Liabilities — 3.0% |
| 1,417,572 | ||||||||||
|
| |||||||||||
Net Assets — 100.0% | $ | 46,750,186 | ||||||||||
|
|
(a) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(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) | Issuer filed for bankruptcy and/or is in default. |
(d) | Rounds to less than $1. |
(e) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(f) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(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) | Non-income producing security. |
(i) | Rounds to less than 1,000. |
(j) | Affiliate of the Fund. |
(k) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 10/31/19 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 10/31/20 | Shares Held at 10/31/20 (000) | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | $ | 14,000 | $ | 26,000 | (a) | $ | — | $ | — | $ | — | $ | 40,000 | 40 | $ | 111 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
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.
20 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® International 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, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 45,291,982 | $ | 0 | (a) | $ | 45,291,982 | |||||||
Common Stocks | — | — | 632 | 632 | ||||||||||||
Money Market Funds | 40,000 | — | — | 40,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 40,000 | $ | 45,291,982 | $ | 632 | $ | 45,332,614 | |||||||||
|
|
|
|
|
|
|
|
(a) | Rounds to less than $1. |
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 21 |
Schedule of Investments October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes(a) | ||||||||
Argentina — 1.2% | ||||||||
Agua y Saneamientos Argentinos SA, 6.63%, 02/01/23 (Call 02/01/21)(b) | $ | 150 | $ | 67,758 | ||||
Arcor SAIC, 6.00%, 07/06/23 (Call 11/30/20)(b) | 225 | 208,898 | ||||||
MSU Energy SA/UGEN SA/UENSA SA, 6.88%, 02/01/25 (Call 02/01/22)(b) | 300 | 156,938 | ||||||
Pampa Energia SA, 7.50%, 01/24/27 (Call 01/24/22)(b) | 300 | 208,500 | ||||||
Stoneway Capital Corp., 10.00%, 03/01/27 (Call 03/01/22)(b)(c) | 266 | 91,077 | ||||||
Tecpetrol SA, 4.88%, 12/12/22 | 200 | 183,187 | ||||||
Transportadora de Gas del Sur SA, 6.75%, 05/02/25 (Call 05/02/22)(b)(d) | 300 | 245,531 | ||||||
YPF SA | 460 | 243,225 | ||||||
7.00%, 12/15/47 (Call 06/15/47)(b) | 250 | 126,250 | ||||||
8.50%, 07/28/25(b) | 800 | 461,500 | ||||||
8.50%, 06/27/29 (Call 03/27/29)(b) | 200 | 112,063 | ||||||
8.75%, 04/04/24(b) | 580 | 378,102 | ||||||
|
| |||||||
2,483,029 | ||||||||
Azerbaijan — 0.2% | ||||||||
International Bank of Azerbaijan OJSC, 3.50%, 09/01/24(b) | 400 | 367,125 | ||||||
|
| |||||||
Bahrain — 0.2% | ||||||||
BBK BSC, 5.50%, 07/09/24(b) | 400 | 402,875 | ||||||
|
| |||||||
Brazil — 6.2% | ||||||||
Adecoagro SA, 6.00%, 09/21/27 | 150 | 150,656 | ||||||
Banco BTG Pactual SA/Cayman Islands, 5.50%, 01/31/23(b)(d) | 200 | 209,250 | ||||||
Banco do Brasil SA/Cayman | 200 | 212,500 | ||||||
4.75%, 03/20/24(b) | 200 | 212,625 | ||||||
5.88%, 01/19/23(b) | 200 | 213,562 | ||||||
6.25%, (Call 04/15/24)(b)(d)(e)(f) | 200 | 192,000 | ||||||
9.00%, (Call 06/18/24)(b)(e)(f) | 200 | 217,600 | ||||||
9.25%, (Call 04/15/23)(b)(e)(f) | 200 | 217,500 | ||||||
Braskem Netherlands Finance BV 4.50%, 01/10/28 (Call 10/10/27)(b) | 200 | 190,229 | ||||||
4.50%, 01/31/30(b) | 200 | 185,298 | ||||||
5.88%, 01/31/50(b) | 200 | 185,875 | ||||||
BRF SA, 4.88%, 01/24/30 (Call 10/24/29)(b) | 200 | 200,304 | ||||||
Cable Onda SA, 4.50%, 01/30/30 (Call 01/30/25)(b) | 200 | 211,812 | ||||||
Cemig Geracao e Transmissao SA, 9.25%, 12/05/24 (Call 12/05/23)(b) | 200 | 225,000 | ||||||
Centrais Eletricas Brasileiras SA, 4.63%, 02/04/30(b) | 200 | 202,500 | ||||||
Cosan Ltd., 5.50%, 09/20/29 (Call 09/20/24)(b) | 200 | 206,625 | ||||||
CSN Islands XI Corp., 6.75%, 01/28/28 (Call 01/28/24)(b) | 200 | 197,400 | ||||||
CSN Resources SA | 200 | 207,500 | ||||||
7.63%, 04/17/26 (Call 04/17/22)(b) | 200 | 204,688 | ||||||
Embraer Netherlands Finance BV | 227 | 219,282 | ||||||
5.40%, 02/01/27 | 50 | 47,345 | ||||||
Fibria Overseas Finance Ltd., 5.50%, 01/17/27 | 100 | 113,063 | ||||||
Gerdau Trade Inc., 4.88%, 10/24/27(b) | 200 | 220,304 | ||||||
Gol Finance SA, 7.00%, 01/31/25 (Call 01/31/22)(b) | 100 | 72,972 | ||||||
GTL Trade Finance Inc./Gerdau Holdings Inc., 5.89%, 04/29/24 (Call 01/29/24)(b) | 150 | 164,630 | ||||||
GUSAP III LP, 4.25%, 01/21/30 | 200 | 209,763 | ||||||
Itau Unibanco Holding SA/Cayman Island 4.50%, 11/21/29 (Call 11/21/24)(b)(f) | 200 | 196,813 |
Security | Par (000) | Value | ||||||
Brazil (continued) | ||||||||
4.63%, (Call 02/27/25)(b)(e)(f) | $ | 200 | $ | 172,500 | ||||
5.13%, 05/13/23(b)(d) | 200 | 211,770 | ||||||
6.50%, (Call 03/19/23)(b)(d)(e)(f) | 200 | 193,500 | ||||||
JBS Investments II GmbH | 400 | 419,500 | ||||||
7.00%, 01/15/26 (Call 01/15/22)(b) | 200 | 213,198 | ||||||
Klabin Austria GmbH, 5.75%, 04/03/29 (Call 01/03/29)(b) | 200 | 220,502 | ||||||
MARB BondCo PLC, 6.88%, 01/19/25 (Call 01/19/21)(b)(d) | 200 | 207,260 | ||||||
Minerva Luxembourg SA, 6.50%, 09/20/26 (Call 09/20/21)(b) | 200 | 208,000 | ||||||
NBM U.S. Holdings Inc., 7.00%, 05/14/26 (Call 05/14/22)(b) | 200 | 212,200 | ||||||
Odebrecht Drilling Norbe VIII/IX Ltd., 7.35%, (7.35% PIK), 12/01/26 (Call 12/01/20)(b)(g) | 252 | 63,699 | ||||||
Odebrecht Offshore Drilling Finance Ltd., 7.72%, (7.72% PIK), 12/01/26 (Call 12/01/21)(b)(g) | 168 | 16,470 | ||||||
Oi SA, 10.00%, (4.00% PIK), 07/27/25(g) | 150 | 146,766 | ||||||
Petrobras Global Finance BV | 100 | 106,160 | ||||||
5.09%, 01/15/30 | 500 | 523,615 | ||||||
5.30%, 01/27/25 | 100 | 111,188 | ||||||
5.60%, 01/03/31 (Call 10/03/30) | 100 | 107,560 | ||||||
5.63%, 05/20/43 | 100 | 102,219 | ||||||
5.75%, 02/01/29 | 250 | 278,165 | ||||||
6.00%, 01/27/28 | 200 | 224,070 | ||||||
6.25%, 03/17/24 | 100 | 112,750 | ||||||
6.75%, 01/27/41 | 100 | 111,031 | ||||||
6.75%, 06/03/50 (Call 12/03/49) | 250 | 273,281 | ||||||
6.85%, 06/05/2115(d) | 300 | 321,844 | ||||||
6.88%, 01/20/40 | 148 | 166,500 | ||||||
6.90%, 03/19/49 | 300 | 339,492 | ||||||
7.25%, 03/17/44 | 175 | 202,508 | ||||||
7.38%, 01/17/27(d) | 250 | 301,672 | ||||||
8.75%, 05/23/26(d) | 100 | 127,500 | ||||||
Rede D’or Finance Sarl, 4.95%, 01/17/28 (Call 10/17/27)(b) | 200 | 205,750 | ||||||
Rumo Luxembourg Sarl, 5.88%, 01/18/25 (Call 01/18/22)(b)(d) | 200 | 209,250 | ||||||
St. Marys Cement Inc. Canada, 5.75%, 01/28/27 (Call 10/28/26)(b)(d) | 200 | 225,062 | ||||||
Suzano Austria GmbH | 100 | 102,210 | ||||||
5.00%, 01/15/30 (Call 10/15/29) | 200 | 218,322 | ||||||
7.00%, 03/16/47 (Call 09/16/46)(b) | 200 | 241,500 | ||||||
Ultrapar International SA, 5.25%, 06/06/29(b)(d) | 200 | 209,090 | ||||||
Vale Overseas Ltd. | 200 | 209,098 | ||||||
6.25%, 08/10/26 | 200 | 237,419 | ||||||
6.88%, 11/21/36 | 300 | 403,594 | ||||||
6.88%, 11/10/39 | 250 | 341,664 | ||||||
|
| |||||||
13,384,975 | ||||||||
Chile — 3.8% | ||||||||
AES Gener SA, 7.13%, 03/26/79 | 400 | 412,250 | ||||||
Banco de Credito e Inversiones SA 3.50%, 10/12/27(b)(d) | 200 | 217,187 | ||||||
4.00%, 02/11/23(b) | 200 | 211,250 | ||||||
Banco Santander Chile, 2.70%, 01/10/25 (Call 12/10/24)(b) | 300 | 314,906 | ||||||
Celulosa Arauco y Constitucion SA 4.20%, 01/29/30 (Call 10/29/29)(b)(d) | 200 | 213,125 | ||||||
4.25%, 04/30/29 (Call 01/30/29)(b) | 400 | 427,500 | ||||||
4.50%, 08/01/24 (Call 05/01/24) | 200 | 217,500 | ||||||
5.15%, 01/29/50 (Call 07/29/49)(b) | 200 | 215,300 | ||||||
5.50%, 04/30/49 (Call 10/30/48)(b)(d) | 200 | 223,500 |
22 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Chile (continued) | ||||||||
Cencosud SA | $ | 400 | $ | 432,500 | ||||
5.15%, 02/12/25 (Call 11/12/24)(b) | 200 | 220,062 | ||||||
Colbun SA | 400 | 417,010 | ||||||
3.95%, 10/11/27 (Call 07/11/27)(b) | 200 | 221,375 | ||||||
Corp. Group Banking SA, 6.75%, 03/15/23 (Call 03/15/21)(b) | 250 | 68,672 | ||||||
Empresa Electrica Guacolda SA, 4.56%, 04/30/25 (Call 01/30/25)(b) | 200 | 159,000 | ||||||
Empresa Nacional de Telecomunicaciones SA | 400 | 441,250 | ||||||
4.88%, 10/30/24 (Call 07/30/24)(b) | 400 | 429,750 | ||||||
Enel Americas SA, 4.00%, 10/25/26 (Call 07/25/26) | 200 | 215,775 | ||||||
Enel Chile SA, 4.88%, 06/12/28 (Call 03/12/28) | 500 | 584,375 | ||||||
Engie Energia Chile SA, 3.40%, 01/28/30 (Call 10/28/29)(b) | 200 | 212,813 | ||||||
GNL Quintero SA, 4.63%, 07/31/29(b) | 600 | 650,250 | ||||||
Inversiones CMPC SA | 200 | 217,402 | ||||||
4.38%, 04/04/27(b) | 200 | 222,625 | ||||||
Inversiones CMPC SA/Cayman Islands Branch, 4.38%, 05/15/23 (Call 02/15/23)(b)(d) | 400 | 424,424 | ||||||
Kenbourne Invest SA, 6.88%, 11/26/24 (Call 11/26/21)(b) | 200 | 208,938 | ||||||
SACI Falabella, 3.75%, 04/30/23(b) | 200 | 208,375 | ||||||
VTR Comunicaciones SpA, 5.13%, 01/15/28 (Call 07/15/23)(b) | 200 | 210,875 | ||||||
VTR Finance NV, 6.38%, 07/15/28 (Call 07/15/23)(b) | 200 | 213,188 | ||||||
|
| |||||||
8,211,177 | ||||||||
China — 8.7% | ||||||||
Agile Group Holdings Ltd., 8.38%, (Call 12/04/23)(b)(e)(f) | 200 | 207,125 | ||||||
Alibaba Group Holding Ltd. | 300 | 333,489 | ||||||
3.60%, 11/28/24 (Call 08/28/24) | 200 | 218,752 | ||||||
4.00%, 12/06/37 (Call 06/06/37) | 200 | 231,562 | ||||||
4.20%, 12/06/47 (Call 06/06/47) | 200 | 248,953 | ||||||
Amipeace Ltd., 2.50%, 12/05/24(b) | 200 | 206,875 | ||||||
Baidu Inc., 4.13%, 06/30/25 | 200 | 222,437 | ||||||
Bank of China Ltd., 5.00%, 11/13/24(b) | 200 | 222,000 | ||||||
Bank of China Ltd./Hong Kong | 200 | 200,016 | ||||||
3.88%, 06/30/25(b) | 200 | 221,750 | ||||||
Bank of Communications Co. Ltd./Hong Kong, 1.13%, 05/17/23, (3 mo. LIBOR US + | 200 | 199,800 | ||||||
Bocom Leasing Management Hong Kong Co. Ltd., 1.32%, 12/10/24, (3 mo. LIBOR US + 1.075%)(b)(f) | 200 | 195,375 | ||||||
CCCI Treasure Ltd., 3.43%, (Call 11/21/24)(b)(e)(f) | 200 | 199,313 | ||||||
CFLD Cayman Investment Ltd., | 200 | 176,197 | ||||||
China Cinda Finance 2015 I Ltd., 4.25%, 04/23/25(b) | 200 | 219,916 | ||||||
China Cinda Finance 2017 I Ltd. | 200 | 210,214 | ||||||
4.75%, 02/21/29(b) | 200 | 230,625 | ||||||
China Construction Bank Corp. | 200 | 198,206 | ||||||
4.25%, 02/27/29 (Call 02/27/24)(b)(f) | 200 | 213,312 | ||||||
China Evergrande Group | 200 | 150,500 | ||||||
8.75%, 06/28/25 (Call 06/28/21)(b) | 200 | 146,500 | ||||||
10.50%, 04/11/24 (Call 04/11/22)(b) | 200 | 157,063 | ||||||
China Mengniu Dairy Co. Ltd., 1.88%, 06/17/25 (Call 05/17/25)(b) | 200 | 199,903 | ||||||
China Overseas Finance Cayman VI Ltd., 5.95%, 05/08/24(b) | 200 | 228,500 |
Security | Par (000) | Value | ||||||
China (continued) | ||||||||
China Overseas Finance Cayman VII Ltd. | $ | 200 | $ | 213,004 | ||||
4.75%, 04/26/28(b) | 200 | 228,437 | ||||||
China Resources Land Ltd., 4.13%, 02/26/29(b) | 200 | 221,125 | ||||||
China State Construction Finance Cayman Ltd., 6.00%, (Call 12/03/21)(b)(e)(f) | 200 | 207,438 | ||||||
CIFI Holdings Group Co. Ltd., 6.00%, 07/16/25 (Call 01/16/23)(b) | 200 | 205,625 | ||||||
CITIC Ltd. | 200 | 205,188 | ||||||
3.88%, 02/28/27(b) | 200 | 216,750 | ||||||
CMHI Finance BVI Co. Ltd., 4.38%, 08/06/23(b) | 200 | 214,331 | ||||||
CNOOC Finance 2013 Ltd., 2.88%, 09/30/29 (Call 06/30/29) | 200 | 212,850 | ||||||
CNOOC Finance 2014 ULC, 4.25%, 04/30/24 | 200 | 220,338 | ||||||
CNOOC Finance 2015 USA LLC, 4.38%, 05/02/28 | 200 | 233,108 | ||||||
CNOOC Petroleum North America ULC | 275 | 399,094 | ||||||
7.50%, 07/30/39 | 200 | 327,312 | ||||||
CNPC General Capital Ltd., 3.40%, 04/16/23(b) | 200 | 210,937 | ||||||
COSL Singapore Capital Ltd., 4.50%, 07/30/25(b) | 200 | 222,812 | ||||||
Country Garden Holdings Co. Ltd., 7.25%, 04/08/26 (Call 04/08/23)(b) | 400 | 446,125 | ||||||
CRCC Yuxiang Ltd., 3.50%, 05/16/23(b) | 200 | 209,500 | ||||||
Franshion Brilliant Ltd., 4.00%, | 200 | 200,938 | ||||||
Huarong Finance 2017 Co. Ltd. | 200 | 213,812 | ||||||
4.75%, 04/27/27(b) | 400 | 437,500 | ||||||
Huarong Finance 2019 Co. Ltd., | 200 | 215,812 | ||||||
Huarong Finance II Co. Ltd., 5.50%, 01/16/25(b) | 200 | 222,826 | ||||||
ICBCIL Finance Co. Ltd., 3.75%, 03/05/24(b) | 200 | 212,437 | ||||||
Industrial & Commercial Bank of China Ltd./London, 1.06%, 10/25/23, (3 mo. LIBOR US + 0.850%)(b)(f) | 400 | 399,770 | ||||||
Industrial & Commercial Bank of China Ltd./Singapore, 1.04%, 04/25/24, (3 mo. LIBOR US + 0.830%)(b)(f) | 200 | 199,520 | ||||||
Industrial & Commercial Bank of China Macau Ltd., 2.88%, 09/12/29 (Call 09/12/24)(b)(f) | 200 | 204,102 | ||||||
JD.com Inc., 3.88%, 04/29/26(d) | 200 | 221,125 | ||||||
Joy Treasure Assets Holdings Inc., 3.50%, 09/24/29 (Call 06/24/29)(b) | 200 | 209,563 | ||||||
Kaisa Group Holdings Ltd. | 200 | 180,969 | ||||||
10.50%, 01/15/25 (Call 01/15/23)(b) | 200 | 186,438 | ||||||
Lenovo Group Ltd., 4.75%, 03/29/23(b) | 200 | 210,313 | ||||||
Longfor Group Holdings Ltd., 3.95%, 09/16/29(b) | 200 | 212,000 | ||||||
Poly Real Estate Finance Ltd., 3.88%, 03/25/24(b) | 200 | 209,813 | ||||||
Prosus NV | 400 | 458,625 | ||||||
5.50%, 07/21/25 (Call 04/21/25)(b) | 600 | 686,250 | ||||||
Proven Honour Capital Ltd. | 200 | 207,750 | ||||||
4.13%, 05/06/26(b) | 200 | 207,750 | ||||||
Shimao Group Holdings Ltd., 5.60%, 07/15/26 (Call 07/15/23)(b) | 200 | 218,687 | ||||||
Sino-Ocean Land Treasure Finance II Ltd., | 200 | 217,333 | ||||||
Sinopec Capital 2013 Ltd., 3.13%, 04/24/23(b) | 400 | 418,625 | ||||||
State Elite Global Ltd., 0.99%, 10/24/24, (3 mo. LIBOR US + 0.770%)(b)(f) | 200 | 198,500 | ||||||
Sunac China Holdings Ltd., 6.50%, 01/10/25 (Call 01/10/23)(b) | 200 | 191,499 |
SCHEDULE OF INVESTMENTS | 23 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
China (continued) | ||||||||
Tencent Holdings Ltd. | $ | 400 | $ | 407,080 | ||||
2.39%, 06/03/30 (Call 03/03/30)(b)(d) | 200 | 202,414 | ||||||
3.60%, 01/19/28 (Call 10/19/27)(b) | 300 | 327,801 | ||||||
3.93%, 01/19/38 (Call 07/19/37)(b) | 200 | 229,008 | ||||||
3.98%, 04/11/29 (Call 01/11/29)(b) | 200 | 225,522 | ||||||
4.53%, 04/11/49 (Call 10/11/48)(b) | 200 | 247,750 | ||||||
Vanke Real Estate Hong Kong Co. Ltd. | 200 | 210,937 | ||||||
4.20%, 06/07/24(b) | 200 | 213,875 | ||||||
Weibo Corp., 3.38%, 07/08/30 (Call 04/08/30) | 200 | 200,625 | ||||||
Well Hope Development Ltd., 3.88%, (Call 10/19/22)(b)(e)(f) | 200 | 201,218 | ||||||
Yingde Gases Investment Ltd., 6.25%, 01/19/23 (Call 01/19/21)(b) | 200 | 206,563 | ||||||
Yuzhou Group Holdings Co. Ltd., 7.38%, 01/13/26 (Call 01/13/24)(b) | 200 | 191,999 | ||||||
|
| |||||||
18,639,106 | ||||||||
Colombia — 4.2% | ||||||||
AI Candelaria Spain SLU, 7.50%, 12/15/28 (Call 09/15/28)(b)(d) | 250 | 270,314 | ||||||
Banco de Bogota SA | 350 | 369,600 | ||||||
5.38%, 02/19/23(b) | 200 | 210,312 | ||||||
6.25%, 05/12/26(b)(d) | 400 | 438,000 | ||||||
Bancolombia SA | 200 | 201,550 | ||||||
4.63%, 12/18/29 (Call 12/18/24)(f) | 400 | 387,625 | ||||||
4.88%, 10/18/27 (Call 10/18/22)(f) | 400 | 394,250 | ||||||
Colombia Telecomunicaciones SA ESP, 4.95%, 07/17/30 (Call 04/17/30)(b) | 200 | 212,000 | ||||||
Ecopetrol SA | 483 | 507,754 | ||||||
5.38%, 06/26/26 (Call 03/26/26) | 535 | 589,837 | ||||||
5.88%, 09/18/23 | 800 | 884,000 | ||||||
5.88%, 05/28/45 | 800 | 868,290 | ||||||
6.88%, 04/29/30 (Call 01/29/30) | 750 | 901,500 | ||||||
7.38%, 09/18/43 | 400 | 500,500 | ||||||
Grupo Aval Ltd., 4.38%, 02/04/30 | 400 | 388,500 | ||||||
Grupo de Inversiones Suramericana SA, 5.50%, 04/29/26 (Call 01/29/26)(b) | 200 | 225,500 | ||||||
Millicom International Cellular SA | 200 | 209,875 | ||||||
6.25%, 03/25/29 (Call 03/25/24)(b) | 200 | 221,100 | ||||||
6.63%, 10/15/26 (Call 10/15/21)(b) | 200 | 216,000 | ||||||
Oleoducto Central SA, 4.00%, 07/14/27 (Call 05/14/27)(h) | 200 | 208,540 | ||||||
SURA Asset Management SA, | 200 | 218,480 | ||||||
Termocandelaria Power Ltd., 7.88%, 01/30/29 (Call 01/30/23)(b) | 200 | 217,200 | ||||||
Transportadora de Gas Internacional SA ESP, 5.55%, 11/01/28 (Call 08/01/28)(b) | 400 | 459,625 | ||||||
|
| |||||||
9,100,352 | ||||||||
Congo — 0.2% | ||||||||
HTA Group Ltd./Mauritius, 7.00%, 12/18/25 (Call 06/18/22)(b) | 400 | 418,363 | ||||||
|
| |||||||
Ghana — 0.2% | ||||||||
Kosmos Energy Ltd., 7.13%, 04/04/26 (Call 04/04/22)(b) | 400 | 343,500 | ||||||
Tullow Oil PLC, 7.00%, 03/01/25 | 200 | 103,188 | ||||||
|
| |||||||
446,688 |
Security | Par (000) | Value | ||||||
Guatemala — 0.1% | ||||||||
Central American Bottling Corp., 5.75%, 01/31/27 (Call 01/31/22)(b) | $ | 100 | $ | 104,438 | ||||
Comunicaciones Celulares SA Via Comcel Trust, 6.88%, 02/06/24 (Call 11/18/20)(b) | 200 | 204,500 | ||||||
|
| |||||||
308,938 | ||||||||
Hong Kong — 5.4% | ||||||||
AIA Group Ltd. | 400 | 408,185 | ||||||
3.38%, 04/07/30 (Call 01/07/30)(b) | 200 | 223,078 | ||||||
3.60%, 04/09/29 (Call 01/09/29)(b) | 200 | 223,603 | ||||||
3.90%, 04/06/28 (Call 01/06/28)(b) | 200 | 224,812 | ||||||
4.50%, 03/16/46 (Call 09/16/45)(b) | 200 | 253,750 | ||||||
Bank of China Hong Kong Ltd., 5.90%, (Call 09/14/23)(b)(e)(f) | 400 | 426,625 | ||||||
Bank of Communications Hong Kong Ltd., 3.73%, (Call 03/03/25)(b)(e)(f) | 250 | 250,703 | ||||||
Bank of East Asia Ltd. (The) | 200 | 202,563 | ||||||
5.50%, (Call 12/02/20)(b)(e)(f) | 150 | 149,484 | ||||||
5.88%, (Call 09/19/24)(b)(e)(f) | 250 | 254,141 | ||||||
Celestial Dynasty Ltd., 4.25%, 06/27/29(b) | 200 | 201,875 | ||||||
Celestial Miles Ltd., 5.75%, (Call 01/31/24)(b)(e)(f) | 200 | 207,437 | ||||||
China CITIC Bank International Ltd., 7.10%, (Call 11/06/23)(b)(e)(f) | 200 | 216,187 | ||||||
CK Hutchison International 16 Ltd., 2.75%, 10/03/26(b) | 200 | 214,625 | ||||||
CK Hutchison International 19 Ltd. | 200 | 213,752 | ||||||
3.38%, 09/06/49 (Call 03/06/49)(b) | 200 | 216,625 | ||||||
3.63%, 04/11/29 (Call 01/11/29)(b) | 200 | 224,250 | ||||||
CK Hutchison International 20 Ltd., 2.50%, 05/08/30 (Call 02/08/30)(b) | 600 | 622,383 | ||||||
CLP Power Hong Kong Financing Ltd., 2.13%, 06/30/30(b) | 200 | 200,161 | ||||||
FWD Group Ltd. | 200 | 151,063 | ||||||
5.75%, 07/09/24(b) | 200 | 205,063 | ||||||
HKT Capital No. 5 Ltd., 3.25%, 09/30/29(b) | 200 | 213,250 | ||||||
Hongkong Electric Finance Ltd., 2.88%, 05/03/26(b) | 200 | 213,762 | ||||||
Hongkong Land Finance Cayman Islands Co. Ltd. (The), 2.88%, 05/27/30 (Call 02/27/30)(b) | 200 | 210,703 | ||||||
HPHT Finance 19 Ltd., 2.88%, 11/05/24(b) | 200 | 207,250 | ||||||
Hutchison Whampoa International 14 Ltd., 3.63%, 10/31/24(b) | 400 | 437,250 | ||||||
Hutchison Whampoa International Ltd., 7.45%, 11/24/33(b) | 100 | 155,625 | ||||||
Hysan MTN Ltd., 2.82%, 09/04/29(b) | 200 | 201,563 | ||||||
IFC Development Corporate Treasury Ltd., | 200 | 217,562 | ||||||
Industrial & Commercial Bank of China Asia Ltd., 4.25%, (Call 07/21/21)(b)(e)(f) | 200 | 201,813 | ||||||
Li & Fung Ltd., 4.38%, 10/04/24 (Call 09/04/24)(b) | 200 | 201,500 | ||||||
Link Finance Cayman 2009 Ltd. (The), 3.60%, 09/03/24(b) | 200 | 213,812 | ||||||
MTR Corp. Ltd., 1.63%, 08/19/30(b) | 200 | 195,181 | ||||||
Nan Fung Treasury II Ltd., 5.50%, | 200 | 200,125 | ||||||
Nan Fung Treasury Ltd., | 200 | 198,822 | ||||||
Nanyang Commercial Bank Ltd., 5.00%, (Call 06/02/22)(b)(e)(f) | 350 | 348,906 | ||||||
New World China Land Ltd., 4.75%, 01/23/27(b) | 200 | 206,500 | ||||||
NWD Finance BVI Ltd. | 200 | 209,375 | ||||||
6.25%, (Call 03/07/24)(b)(e) | 200 | 205,938 | ||||||
NWD MTN Ltd. | 200 | 201,938 | ||||||
4.50%, 05/19/30(b) | 200 | 207,687 | ||||||
OVPH Ltd., 5.88%, (Call 03/01/21)(b)(e) | 200 | 201,750 | ||||||
PCCW-HKT Capital No. 5 Ltd., 3.75%, 03/08/23(b) | 200 | 210,375 |
24 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Hong Kong (continued) | ||||||||
Radiant Access Ltd., 4.60%, | $ | 400 | $ | 400,375 | ||||
Sun Hung Kai Properties Capital Market Ltd. | 200 | 209,375 | ||||||
3.63%, 01/16/23(b) | 200 | 209,812 | ||||||
Swire Pacific Mtn Financing HK Ltd., 2.88%, 01/30/30 (Call 10/30/29)(b) | 200 | 206,938 | ||||||
Swire Pacific MTN Financing Ltd., 4.50%, 10/09/23(b) | 200 | 216,500 | ||||||
Swire Properties MTN Financing Ltd., 3.63%, 01/13/26(b) | 200 | 217,000 | ||||||
|
| |||||||
11,611,052 | ||||||||
India — 4.8% | ||||||||
ABJA Investment Co. Pte Ltd. | 400 | 388,112 | ||||||
5.95%, 07/31/24(b) | 200 | 208,250 | ||||||
Adani Electricity Mumbai Ltd., | 400 | 394,250 | ||||||
Adani Green Energy UP Ltd./Prayatna Developers Pvt Ltd./Parampujya Solar Energy, 6.25%, 12/10/24(b) | 200 | 216,062 | ||||||
Adani Ports & Special Economic Zone Ltd. | 400 | 405,900 | ||||||
4.00%, 07/30/27 (Call 06/30/27)(b) | 200 | 201,070 | ||||||
4.20%, 08/04/27 (Call 02/04/27)(b) | 200 | 201,850 | ||||||
Bharat Petroleum Corp. Ltd., | 200 | 208,625 | ||||||
Bharti Airtel International Netherlands BV, 5.35%, 05/20/24(b) | 400 | 433,250 | ||||||
Bharti Airtel Ltd., 4.38%, 06/10/25(b) | 400 | 424,500 | ||||||
BPRL International Singapore Pte Ltd., 4.38%, 01/18/27(b) | 200 | 208,500 | ||||||
Delhi International Airport Ltd., | 200 | 203,500 | ||||||
Future Retail Ltd., 5.60%, 01/22/25 (Call 01/22/23)(b) | 200 | 137,000 | ||||||
Greenko Solar Mauritius Ltd. | 200 | 205,063 | ||||||
5.95%, 07/29/26 (Call 07/29/22)(b) | 200 | 210,312 | ||||||
Hindustan Petroleum Corp. Ltd., 4.00%, 07/12/27(b) | 200 | 204,563 | ||||||
ICICI Bank Ltd./Dubai, 4.00%, 03/18/26(b) | 450 | 477,141 | ||||||
Indian Oil Corp. Ltd., 4.75%, 01/16/24(b) | 400 | 424,875 | ||||||
Network i2i Ltd., 5.65%, (Call 01/15/25)(b)(e)(f) | 200 | 200,300 | ||||||
NTPC Ltd. | 200 | 213,000 | ||||||
4.38%, 11/26/24(b) | 200 | 213,979 | ||||||
Oil India International Pte Ltd., | 200 | 204,688 | ||||||
Oil India Ltd., 5.38%, 04/17/24(b) | 200 | 218,187 | ||||||
ONGC Videsh Ltd., 4.63%, 07/15/24(b) | 200 | 214,125 | ||||||
ONGC Videsh Vankorneft Pte Ltd., 3.75%, 07/27/26(b) | 200 | 208,313 | ||||||
Power Finance Corp. Ltd., 4.50%, 06/18/29(b) | 400 | 409,000 | ||||||
REC Ltd. | 200 | 203,625 | ||||||
5.25%, 11/13/23(b) | 200 | 216,500 | ||||||
Reliance Industries Ltd. | 250 | 273,672 | ||||||
4.13%, 01/28/25(b) | 250 | 274,453 | ||||||
4.88%, 02/10/45(b) | 250 | 305,625 | ||||||
ReNew Power Synthetic, 6.67%, 03/12/24 (Call 03/12/21)(b) | 200 | 209,312 | ||||||
State Bank of India/London | 400 | 428,250 | ||||||
4.88%, 04/17/24(b) | 200 | 218,062 | ||||||
Vedanta Resources Finance II PLC, 9.25%, 04/23/26 (Call 04/23/23)(b)(d) | 200 | 125,250 | ||||||
Vedanta Resources Ltd. | 200 | 117,250 | ||||||
7.13%, 05/31/23(b) | 200 | 122,150 |
Security | Par (000) | Value | ||||||
India (continued) | ||||||||
Wynn Macau Ltd. | $ | 400 | $ | 370,000 | ||||
5.50%, 01/15/26 (Call 06/15/22)(b) | 400 | 387,500 | ||||||
|
| |||||||
10,286,064 | ||||||||
Indonesia — 2.5% | ||||||||
Adaro Indonesia PT, 4.25%, 10/31/24 (Call 10/31/22)(b) | 250 | 247,109 | ||||||
Bank Mandiri Persero Tbk PT | 200 | 210,375 | ||||||
4.75%, 05/13/25(b) | 400 | 439,750 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 200 | 212,437 | ||||||
4.63%, 07/20/23(b) | 200 | 214,000 | ||||||
Cikarang Listrindo Tbk PT, 4.95%, 09/14/26 (Call 09/14/21)(b) | 200 | 204,688 | ||||||
Eterna Capital Pte Ltd., Series B, 8.00%, (8.00% PIK), 12/11/22 (Call 11/30/20)(g) | 226 | 49,614 | ||||||
Indika Energy Capital III Pte Ltd., 5.88%, 11/09/24 (Call 11/09/21)(b) | 250 | 234,453 | ||||||
LLPL Capital Pte Ltd., 6.88%, 02/04/39(b) | 375 | 431,118 | ||||||
Medco Bell Pte Ltd., 6.38%, 01/30/27 (Call 01/30/24)(b) | 200 | 175,500 | ||||||
Medco Oak Tree Pte Ltd., 7.38%, 05/14/26 (Call 05/14/23)(b) | 400 | 387,375 | ||||||
Medco Platinum Road Pte Ltd., 6.75%, 01/30/25 (Call 01/30/22)(b) | 200 | 194,125 | ||||||
Minejesa Capital BV | 400 | 411,844 | ||||||
5.63%, 08/10/37(b) | 400 | 413,750 | ||||||
Perusahaan Gas Negara Tbk PT, 5.13%, 05/16/24(b) | 600 | 657,000 | ||||||
Saka Energi Indonesia PT, 4.45%, 05/05/24(b) | 400 | 366,625 | ||||||
Star Energy Geothermal Darajat II/Star Energy Geothermal Salak, 4.85%, 10/14/38 (Call 10/14/29)(h) | 200 | 206,000 | ||||||
Star Energy Geothermal Wayang Windu Ltd., 6.75%, 04/24/33 (Call 04/24/26)(b) | 363 | 398,400 | ||||||
|
| |||||||
5,454,163 | ||||||||
Israel — 3.3% | ||||||||
Bank Leumi Le-Israel BM, 3.28%, 01/29/31 (Call 01/29/26)(f)(h) | 200 | 203,250 | ||||||
ICL Group Ltd., 6.38%, 05/31/38 | 250 | 320,938 | ||||||
Israel Electric Corp. Ltd. | 400 | 458,000 | ||||||
6.88%, 06/21/23(b) | 200 | 227,813 | ||||||
Series 6, 5.00%, 11/12/24(h) | 600 | 678,000 | ||||||
Leviathan Bond Ltd. | 400 | 410,480 | ||||||
6.50%, 06/30/27 (Call 12/30/26)(h) | 200 | 206,750 | ||||||
6.75%, 06/30/30 (Call 12/30/29)(h) | 200 | 206,750 | ||||||
Teva Pharmaceutical Finance Co. LLC, 6.15%, 02/01/36 | 300 | 300,000 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 1,186 | 1,124,826 | ||||||
3.15%, 10/01/26(d) | 1,451 | 1,273,252 | ||||||
4.10%, 10/01/46 | 790 | 655,700 | ||||||
6.00%, 04/15/24 (Call 01/15/24) | 500 | 500,086 | ||||||
6.75%, 03/01/28 (Call 12/01/27) | 500 | 522,506 | ||||||
|
| |||||||
7,088,351 | ||||||||
Jamaica — 0.5% | ||||||||
Digicel Group 0.5 Ltd. (2.00% PIK), 10.00%, 04/01/24 (Call 11/16/20)(g) | 400 | 302,604 | ||||||
Digicel International Finance Ltd./Digicel Holdings Bermuda Ltd. | 200 | 199,500 | ||||||
8.75%, 05/25/24 (Call 05/25/21)(b) | 300 | 301,500 |
SCHEDULE OF INVESTMENTS | 25 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Jamaica (continued) | ||||||||
Digicel Ltd., 6.75%, 03/01/23 (Call 11/16/20)(b)(d) | $ | 400 | $ | 248,000 | ||||
|
| |||||||
1,051,604 | ||||||||
Jordan — 0.1% | ||||||||
Hikma Finance USA LLC, 3.25%, 07/09/25(b) | 200 | 205,400 | ||||||
|
| |||||||
Kazakhstan — 0.6% | ||||||||
Halyk Savings Bank of Kazakhstan JSC, 5.50%, 12/21/22 (Call 11/30/20)(b) | 147 | 146,342 | ||||||
Tengizchevroil Finance Co. International Ltd. | 600 | 609,187 | ||||||
4.00%, 08/15/26(b) | 500 | 530,938 | ||||||
|
| |||||||
1,286,467 | ||||||||
Kuwait — 1.7% | ||||||||
Boubyan Sukuk Ltd., 2.59%, 02/18/25(b) | 200 | 204,540 | ||||||
Burgan Bank SAK, 5.75%, (Call 07/09/24)(b)(e)(f) | 200 | 197,563 | ||||||
Equate Petrochemical BV, 4.25%, 11/03/26(b) | 600 | 640,800 | ||||||
Equate Sukuk Spc Ltd., 3.94%, 02/21/24(b) | 200 | 212,687 | ||||||
Kuwait Projects Co. SPC Ltd. | 200 | 198,625 | ||||||
4.50%, 02/23/27(b) | 200 | 198,688 | ||||||
5.00%, 03/15/23(b) | 200 | 206,187 | ||||||
MEGlobal Canada ULC | 600 | 652,500 | ||||||
5.88%, 05/18/30(b) | 200 | 237,062 | ||||||
NBK Tier 1 Financing 2 Ltd., 4.50%, (Call 11/27/25)(b)(e)(f) | 400 | 396,250 | ||||||
NBK Tier 1 Financing Ltd., 5.75%, (Call 04/09/21)(b)(e)(f) | 400 | 398,875 | ||||||
Warba Sukuk Ltd., 2.98%, 09/24/24(b) | 200 | 208,250 | ||||||
|
| |||||||
3,752,027 | ||||||||
Luxembourg — 0.8% | ||||||||
Altice Financing SA | 400 | 388,000 | ||||||
7.50%, 05/15/26 (Call 05/15/21)(b) | 1,195 | 1,248,894 | ||||||
|
| |||||||
1,636,894 | ||||||||
Macau — 3.5% | ||||||||
Melco Resorts Finance Ltd. | 204 | 205,976 | ||||||
5.25%, 04/26/26 (Call 04/26/22)(b) | 200 | 201,000 | ||||||
5.38%, 12/04/29 (Call 12/04/24)(b) | 600 | 578,250 | ||||||
5.63%, 07/17/27 (Call 07/17/22)(b)(d) | 200 | 202,750 | ||||||
5.75%, 07/21/28 (Call 07/21/23)(b) | 600 | 599,094 | ||||||
MGM China Holdings Ltd. | 200 | 200,313 | ||||||
5.38%, 05/15/24 (Call 05/15/21)(b) | 400 | 408,825 | ||||||
5.88%, 05/15/26 (Call 05/15/22)(b) | 400 | 404,500 | ||||||
Sands China Ltd. | 400 | 407,000 | ||||||
4.38%, 06/18/30 (Call 03/18/30)(b) | 400 | 411,708 | ||||||
4.60%, 08/08/23 (Call 07/08/23) | 600 | 638,814 | ||||||
5.13%, 08/08/25 (Call 06/08/25) | 1,000 | 1,079,152 | ||||||
5.40%, 08/08/28 (Call 05/08/28) | 600 | 647,082 | ||||||
Studio City Finance Ltd. | 200 | 200,250 | ||||||
6.50%, 01/15/28 (Call 07/15/23)(b) | 200 | 197,040 | ||||||
7.25%, 02/11/24 (Call 02/11/21)(b)(d) | 408 | 418,582 | ||||||
Wynn Macau Ltd. | 400 | 390,000 | ||||||
5.50%, 10/01/27 (Call 10/01/22)(b) | 200 | 187,190 | ||||||
5.63%, 08/26/28 (Call 08/26/23)(h) | 200 | 191,250 | ||||||
|
| |||||||
7,568,776 |
Security | Par (000) | Value | ||||||
Malaysia — 1.5% | ||||||||
Axiata SPV2 Bhd | $ | 200 | $ | 197,750 | ||||
4.36%, 03/24/26(b) | 200 | 226,813 | ||||||
Axiata Spv5 Labuan Ltd., 3.06%, 08/19/50 (Call 02/19/50)(b) | 400 | 386,200 | ||||||
CIMB Bank Bhd, 1.01%, 10/09/24, (3 mo. LIBOR US + 0.780%)(b)(f) | 200 | 198,875 | ||||||
Gohl Capital Ltd., 4.25%, 01/24/27(b) | 800 | 791,088 | ||||||
Malayan Banking Bhd, 1.08%, 08/16/24, (3 mo. LIBOR US + 0.800%)(b)(f) | 400 | 397,875 | ||||||
Parkway Pantai Ltd., 4.25%, (Call 07/27/22)(b)(e)(f) | 200 | 200,875 | ||||||
TNB Global Ventures Capital Bhd | 400 | 429,875 | ||||||
4.85%, 11/01/28(b) | 400 | 470,875 | ||||||
|
| |||||||
3,300,226 | ||||||||
Mexico — 5.3% | ||||||||
Alfa SAB de CV, 5.25%, 03/25/24 | 200 | 212,875 | ||||||
Alpek SAB de CV, 4.25%, 09/18/29 (Call 06/18/29)(b) | 200 | 204,558 | ||||||
America Movil SAB de CV | 400 | 429,064 | ||||||
3.63%, 04/22/29 (Call 01/22/29) | 200 | 225,625 | ||||||
4.38%, 07/16/42 | 200 | 242,535 | ||||||
4.38%, 04/22/49 (Call 10/22/48) | 200 | 244,948 | ||||||
6.13%, 03/30/40 | 300 | 427,031 | ||||||
6.38%, 03/01/35 | 100 | 143,969 | ||||||
Banco Inbursa SA Institucion De Banca Multiple Grupo Financiero Inbursa, 4.13%, 06/06/24(b)(d) | 450 | 473,864 | ||||||
Banco Mercantil del Norte SA/Grand Cayman, 6.75%, (Call 09/27/24)(b)(e)(f) | 200 | 199,250 | ||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand | ||||||||
5.38%, 04/17/25(b) | 150 | 167,813 | ||||||
5.95%, 10/01/28 (Call 10/01/23)(b)(f) | 200 | 212,438 | ||||||
BBVA Bancomer SA/Texas | 150 | 161,850 | ||||||
5.13%, 01/18/33 (Call 01/17/28)(b)(f) | 200 | 197,000 | ||||||
5.88%, 09/13/34 (Call 09/13/29)(b)(f) | 200 | 208,250 | ||||||
Becle SAB de CV, 3.75%, 05/13/25(b) | 150 | 160,500 | ||||||
Braskem Idesa SAPI, 7.45%, 11/15/29 (Call 11/15/24)(b) | 200 | 189,104 | ||||||
Cemex SAB de CV | 200 | 211,560 | ||||||
5.70%, 01/11/25 (Call 11/30/20)(b) | 400 | 408,875 | ||||||
7.38%, 06/05/27 (Call 06/05/23)(b) | 200 | 220,500 | ||||||
7.75%, 04/16/26 (Call 04/16/21)(b) | 200 | 211,600 | ||||||
Coca-Cola FEMSA SAB de CV, 5.25%, 11/26/43 | 300 | 404,156 | ||||||
Cometa Energia SA de CV, 6.38%, 04/24/35 (Call 01/24/35)(b) | 187 | 207,018 | ||||||
El Puerto de Liverpool SAB de CV, 3.88%, 10/06/26(b) | 200 | 206,750 | ||||||
Fomento Economico Mexicano SAB de CV | 450 | 467,325 | ||||||
4.38%, 05/10/43 | 150 | 176,953 | ||||||
Fresnillo PLC, 4.25%, 10/02/50 (Call 04/02/50)(h) | 200 | 203,250 | ||||||
Grupo Bimbo SAB de CV | 200 | 211,184 | ||||||
4.88%, 06/27/44(b) | 200 | 236,187 | ||||||
Grupo Televisa SAB | 200 | 224,625 | ||||||
5.25%, 05/24/49 (Call 11/24/48) | 200 | 233,947 | ||||||
6.13%, 01/31/46 (Call 07/31/45) | 200 | 258,107 | ||||||
6.63%, 03/18/25 | 100 | 120,469 | ||||||
6.63%, 01/15/40 | 120 | 157,200 |
26 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Mexico (continued) | ||||||||
Industrias Penoles SAB de CV | $ | 200 | $ | 219,687 | ||||
4.75%, 08/06/50 (Call 02/06/50)(h) | 200 | 209,250 | ||||||
Infraestructura Energetica Nova SAB de CV, 4.88%, 01/14/48(b)(d) | 200 | 190,688 | ||||||
Minera Mexico SA de CV, 4.50%, 01/26/50 (Call 07/26/49)(b) | 200 | 216,520 | ||||||
Nemak SAB de CV, 4.75%, 01/23/25 (Call 01/23/21)(b) | 200 | 204,206 | ||||||
Orbia Advance Corp. SAB de CV, 5.50%, 01/15/48 (Call 07/15/47)(b) | 200 | 224,137 | ||||||
Sigma Alimentos SA de CV, 4.13%, 05/02/26 (Call 02/02/26)(b) | 200 | 216,688 | ||||||
Southern Copper Corp. | 100 | 110,344 | ||||||
5.25%, 11/08/42 | 200 | 253,750 | ||||||
5.88%, 04/23/45 | 300 | 410,850 | ||||||
6.75%, 04/16/40 | 100 | 143,813 | ||||||
7.50%, 07/27/35 | 200 | 293,562 | ||||||
Trust Fibra Uno | 200 | 217,125 | ||||||
6.39%, 01/15/50 (Call 07/15/49)(b) | 200 | 207,750 | ||||||
|
| |||||||
11,378,750 | ||||||||
Morocco — 0.7% | ||||||||
OCP SA | 600 | 636,656 | ||||||
5.63%, 04/25/24(b) | 625 | 679,492 | ||||||
6.88%, 04/25/44(b) | 200 | 250,500 | ||||||
|
| |||||||
1,566,648 | ||||||||
Nigeria — 0.2% | ||||||||
IHS Netherlands Holdco BV | 200 | 201,937 | ||||||
8.00%, 09/18/27 (Call 09/18/22)(b) | 300 | 305,625 | ||||||
|
| |||||||
507,562 | ||||||||
Oman — 0.5% | ||||||||
Bank Muscat SAOG, 4.88%, 03/14/23(b) | 200 | 200,750 | ||||||
National Bank of Oman SAOG, | 400 | 399,375 | ||||||
Oztel Holdings SPC Ltd., 6.63%, 04/24/28(b) | 500 | 489,375 | ||||||
|
| |||||||
1,089,500 | ||||||||
Panama — 1.0% | ||||||||
AES Panama Generation Holdings SRL, 4.38%, 05/31/30 (Call 02/28/30)(h) | 600 | 633,095 | ||||||
Banco General SA, 4.13%, 08/07/27 (Call 05/07/27)(b) | 400 | 445,750 | ||||||
C&W Senior Financing DAC | 600 | 631,800 | ||||||
7.50%, 10/15/26 (Call 10/15/21)(b)(d) | 200 | 211,260 | ||||||
Sable International Finance Ltd., 5.75%, 09/07/27 (Call 09/07/22)(b) | 200 | 212,000 | ||||||
|
| |||||||
2,133,905 | ||||||||
Paraguay — 0.2% | ||||||||
Bioceanico Sovereign Certificate Ltd., 0.00%, 06/05/34(b)(d)(i) | 298 | 217,609 | ||||||
Telefonica Celular del Paraguay SA, 5.88%, 04/15/27 (Call 04/15/22)(b) | 200 | 211,187 | ||||||
|
| |||||||
428,796 | ||||||||
Peru — 2.0% | ||||||||
Banco de Credito del Peru | 600 | 617,280 | ||||||
3.13%, 07/01/30 (Call 07/01/25)(b)(f) | 400 | 404,000 | ||||||
4.25%, 04/01/23(b) | 100 | 106,688 | ||||||
Credicorp Ltd., 2.75%, 06/17/25 | 200 | 204,250 |
Security | Par (000) | Value | ||||||
Peru (continued) | ||||||||
Hunt Oil Co. of Peru LLC Sucursal Del Peru, 6.38%, 06/01/28(b) | $ | 200 | $ | 200,125 | ||||
Inkia Energy Ltd., 5.88%, 11/09/27 | 200 | 207,625 | ||||||
Kallpa Generacion SA, 4.13%, 08/16/27 (Call 05/16/27)(b) | 400 | 418,250 | ||||||
Lima Metro Line 2 Finance Ltd. | 200 | 219,750 | ||||||
5.88%, 07/05/34(b) | 316 | 378,735 | ||||||
Nexa Resources SA | 400 | 422,600 | ||||||
6.50%, 01/18/28 (Call 10/18/27)(b) | 200 | 220,937 | ||||||
Orazul Energy Egenor SCA, 5.63%, 04/28/27 (Call 04/28/22)(b)(d) | 200 | 206,375 | ||||||
Peru LNG Srl, 5.38%, 03/22/30(b)(d) | 400 | 304,125 | ||||||
Transportadora de Gas del Peru SA, 4.25%, 04/30/28(b)(d) | 400 | 443,000 | ||||||
|
| |||||||
4,353,740 | ||||||||
Philippines — 1.9% | ||||||||
Bank of the Philippine Islands, 4.25%, 09/04/23(b) | 200 | 215,687 | ||||||
BDO Unibank Inc. | 200 | 200,250 | ||||||
2.95%, 03/06/23(b) | 400 | 415,000 | ||||||
JGSH Philippines Ltd. | 200 | 204,000 | ||||||
4.38%, 01/23/23(b) | 200 | 211,108 | ||||||
Jollibee Worldwide Pte Ltd., 3.90%, (Call 01/23/25)(b)(e)(f) | 400 | 364,250 | ||||||
Manila Water Co. Inc., 4.38%, 07/30/30 (Call 07/30/25)(b) | 200 | 198,750 | ||||||
Metropolitan Bank & Trust Co., 2.13%, 01/15/26(b) | 200 | 199,500 | ||||||
Petron Corp., 4.60%, (Call 07/19/23)(b)(e)(f) | 200 | 186,313 | ||||||
Philippine National Bank, 3.28%, 09/27/24(b) | 400 | 419,750 | ||||||
San Miguel Corp., 4.88%, 04/26/23 (Call 04/26/21)(b) | 200 | 201,448 | ||||||
San Miguel Crop., 5.50%, (Call 07/29/25)(b)(e)(f) | 400 | 397,000 | ||||||
SMC Global Power Holdings Corp. | 200 | 188,625 | ||||||
5.95%, (Call 05/05/25)(b)(e)(f) | 400 | 384,500 | ||||||
6.50%, (Call 04/25/24)(b)(e)(f) | 300 | 296,250 | ||||||
|
| |||||||
4,082,431 | ||||||||
Qatar — 3.2% | ||||||||
ABQ Finance Ltd., 3.13%, 09/24/24(b) | 200 | 207,750 | ||||||
AKCB Finance Ltd., 4.75%, 10/09/23(b) | 200 | 217,312 | ||||||
CBQ Finance Ltd., 5.00%, 05/24/23(b) | 200 | 216,063 | ||||||
MAR Sukuk Ltd. | 200 | 200,750 | ||||||
3.03%, 11/13/24(b) | 200 | 208,625 | ||||||
Nakilat Inc., 6.07%, 12/31/33(b) | 350 | 446,469 | ||||||
Ooredoo International Finance Ltd. | 550 | 573,567 | ||||||
3.75%, 06/22/26(b) | 400 | 443,500 | ||||||
3.88%, 01/31/28(b) | 200 | 228,125 | ||||||
4.50%, 01/31/43(b) | 200 | 256,125 | ||||||
5.00%, 10/19/25(b) | 200 | 232,250 | ||||||
QIB Sukuk Ltd. | 200 | 196,438 | ||||||
3.98%, 03/26/24(b) | 400 | 427,750 | ||||||
QIIB Senior Sukuk Ltd., 4.26%, 03/05/24(b) | 200 | 214,938 | ||||||
QNB Finance Ltd. | 600 | 623,437 | ||||||
2.75%, 02/12/27(b) | 500 | 521,719 | ||||||
3.50%, 03/28/24(b) | 400 | 424,625 |
SCHEDULE OF INVESTMENTS | 27 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Qatar (continued) | ||||||||
Ras Laffan Liquefied Natural Gas Co. Ltd. III | $ | 500 | $ | 582,656 | ||||
6.33%, 09/30/27(b) | 513 | 602,775 | ||||||
|
| |||||||
6,824,874 | ||||||||
Russia — 4.9% | ||||||||
Alfa Bank AO Via Alfa Bond Issuance PLC | 200 | 197,313 | ||||||
6.95%, (Call 04/30/23)(b)(e)(f) | 200 | 199,000 | ||||||
8.00%, (Call 02/03/22)(b)(e)(f) | 200 | 202,188 | ||||||
ALROSA Finance SA, 4.65%, 04/09/24 (Call 01/09/24)(b) | 200 | 213,062 | ||||||
Credit Bank of Moscow Via CBOM Finance PLC, 4.70%, 01/29/25(b) | 400 | 401,500 | ||||||
Eurochem Finance DAC, 5.50%, 03/13/24(b) | 200 | 218,500 | ||||||
Evraz PLC | 200 | 217,625 | ||||||
5.38%, 03/20/23(b) | 200 | 213,500 | ||||||
Gazprom Neft OAO Via GPN Capital SA, 6.00%, 11/27/23(b) | 600 | 666,375 | ||||||
Gazprom PJSC Via Gaz Capital SA | 800 | 892,500 | ||||||
7.29%, 08/16/37(b) | 600 | 840,375 | ||||||
8.63%, 04/28/34(b) | 250 | 372,891 | ||||||
Lukoil International Finance BV | 200 | 211,750 | ||||||
4.75%, 11/02/26(b) | 600 | 668,437 | ||||||
Lukoil Securities BV, 3.88%, 05/06/30(b) | 200 | 211,500 | ||||||
Metalloinvest Finance DAC, 4.85%, 05/02/24(b) | 200 | 215,875 | ||||||
MMC Norilsk Nickel OJSC via MMC Finance DAC, 4.10%, 04/11/23(b) | 300 | 312,656 | ||||||
MMC Norilsk Nickel OJSC Via MMC Finance DAC | 200 | 200,750 | ||||||
3.38%, 10/28/24 (Call 07/28/24)(b) | 200 | 206,563 | ||||||
MMK International Capital DAC, 4.38%, 06/13/24(b) | 200 | 213,375 | ||||||
Mobile Telesystems OJSC Via MTS International Funding DAC, | 200 | 213,000 | ||||||
Novatek OAO Via Novatek Finance DAC, 4.42%, 12/13/22(b) | 200 | 209,563 | ||||||
Novolipetsk Steel Via Steel Funding DAC | 200 | 212,187 | ||||||
4.70%, 05/30/26(b) | 200 | 221,625 | ||||||
Petropavlovsk 2016 Ltd., 8.13%, 11/14/22 (Call 08/14/22)(b) | 200 | 199,250 | ||||||
Phosagro OAO Via Phosagro Bond Funding DAC, 3.05%, 01/23/25 (Call 10/23/24)(b) | 200 | 204,375 | ||||||
Polyus Finance PLC, 5.25%, 02/07/23(b) | 200 | 212,812 | ||||||
Sberbank of Russia Via SB Capital SA, 5.25%, 05/23/23(b) | 200 | 212,000 | ||||||
Severstal OAO Via Steel Capital SA, 3.15%, 09/16/24(b) | 400 | 410,625 | ||||||
TMK OAO Via TMK Capital SA, 4.30%, 02/12/27(b) | 200 | 195,625 | ||||||
VEON Holdings BV | 400 | 417,625 | ||||||
4.95%, 06/16/24 (Call 03/16/24)(b) | 200 | 215,625 | ||||||
7.25%, 04/26/23 (Call 01/26/23)(b) | 200 | 220,500 | ||||||
VTB Bank PJSC Via VTB Eurasia DAC, 9.50%, (Call 12/06/22)(b)(e)(f) | 400 | 430,625 | ||||||
|
| |||||||
10,451,172 | ||||||||
Saudi Arabia — 4.6% | ||||||||
Acwa Power Management And Investments One Ltd., 5.95%, 12/15/39(b) | 400 | 458,000 | ||||||
Almarai Sukuk Ltd., 4.31%, 03/05/24(b) | 200 | 213,563 | ||||||
Arabian Centres Sukuk Ltd., 5.38%, 11/26/24(b) | 300 | 279,469 | ||||||
Dar Al-Arkan Sukuk Co. Ltd., | 400 | 392,750 | ||||||
Riyad Bank, 3.17%, 02/25/30 | 400 | 401,500 |
Security | Par (000) | Value | ||||||
Saudi Arabia (continued) | ||||||||
SABIC Capital II BV | $ | 200 | $ | 214,750 | ||||
4.50%, 10/10/28(b) | 600 | 706,312 | ||||||
Samba Funding Ltd., 2.75%, 10/02/24(b) | 600 | 618,000 | ||||||
Saudi Arabian Oil Co. | 1,000 | 1,097,500 | ||||||
4.25%, 04/16/39(b) | 1,200 | 1,357,500 | ||||||
4.38%, 04/16/49(b) | 1,000 | 1,170,625 | ||||||
Saudi Electricity Global Sukuk Co. 2 | 400 | 419,875 | ||||||
5.06%, 04/08/43(b) | 400 | 478,875 | ||||||
Saudi Electricity Global Sukuk Co. 3 | 600 | 647,625 | ||||||
5.50%, 04/08/44(b) | 200 | 249,875 | ||||||
Saudi Electricity Global Sukuk Co. 4 | 200 | 215,875 | ||||||
4.72%, 09/27/28(b) | 400 | 471,000 | ||||||
Saudi Telecom Co., 3.89%, 05/13/29(b) | 400 | 454,080 | ||||||
|
| |||||||
9,847,174 | ||||||||
Singapore — 4.4% | ||||||||
BOC Aviation Ltd. | ||||||||
1.36%, 09/26/23 (Call 08/26/23), (3 mo. LIBOR US + 1.125%)(b)(f) | 400 | 393,375 | ||||||
3.00%, 09/11/29 (Call 06/11/29)(b) | 300 | 302,437 | ||||||
3.25%, 04/29/25 (Call 03/29/25)(b) | 400 | 417,375 | ||||||
3.50%, 10/10/24 (Call 09/10/24)(b) | 400 | 420,250 | ||||||
3.50%, 09/18/27 (Call 06/18/27)(b)(d) | 400 | 420,625 | ||||||
3.88%, 04/27/26 (Call 01/27/26)(b) | 500 | 538,594 | ||||||
4.00%, 01/25/24 (Call 12/25/23)(b) | 200 | 211,812 | ||||||
DBS Group Holdings Ltd. | 400 | 399,325 | ||||||
3.60%, (Call 09/07/21)(b)(e)(f) | 200 | 201,563 | ||||||
4.52%, 12/11/28 (Call 12/11/23)(b)(f) | 400 | 435,284 | ||||||
Flex Ltd. | 200 | 218,000 | ||||||
4.75%, 06/15/25 (Call 03/15/25) | 510 | 572,156 | ||||||
4.88%, 06/15/29 (Call 03/15/29) | 250 | 286,875 | ||||||
4.88%, 05/12/30 (Call 02/12/30)(d) | 200 | 230,378 | ||||||
GLP Pte Ltd., 3.88%, 06/04/25(b) | 425 | 437,352 | ||||||
Olam International Ltd., 5.35%, | 300 | 299,531 | ||||||
Oversea-Chinese Banking Corp. Ltd., 4.25%, 06/19/24(b)(d) | 600 | 655,312 | ||||||
Singapore Telecommunications Ltd., 7.38%, 12/01/31(b) | 200 | 301,312 | ||||||
SingTel Group Treasury Pte Ltd. | 200 | 201,063 | ||||||
2.38%, 10/03/26(b) | 200 | 212,875 | ||||||
2.38%, 08/28/29 (Call 05/28/29)(b) | 200 | 208,938 | ||||||
3.25%, 06/30/25(b) | 300 | 327,937 | ||||||
3.88%, 08/28/28 (Call 05/28/28)(b) | 200 | 229,922 | ||||||
ST Engineering RHQ Ltd., 1.50%, 04/29/25 (Call 01/29/25)(b) | 400 | 406,333 | ||||||
United Overseas Bank Ltd. | 200 | 203,688 | ||||||
3.75%, 04/15/29 (Call 04/15/24)(b)(f) | 400 | 426,375 | ||||||
3.88%, (Call 10/19/23)(b)(e)(f) | 400 | 410,000 | ||||||
|
| |||||||
9,368,687 | ||||||||
South Africa — 1.2% | ||||||||
FirstRand Bank Ltd., 6.25%, 04/23/28 (Call 04/23/23)(b)(f) | 200 | 205,000 | ||||||
Gold Fields Orogen Holdings BVI Ltd. | 400 | 437,000 | ||||||
6.13%, 05/15/29 (Call 02/15/29)(b) | 200 | 238,125 |
28 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
South Africa (continued) | ||||||||
MTN Mauritius Investments Ltd. | $ | 250 | $ | 256,328 | ||||
6.50%, 10/13/26(b) | 200 | 222,250 | ||||||
Sasol Financing USA LLC | 800 | 768,250 | ||||||
6.50%, 09/27/28 (Call 06/27/28) | 400 | 383,000 | ||||||
|
| |||||||
2,509,953 | ||||||||
South Korea — 4.3% | ||||||||
Hanwha Life Insurance Co. Ltd., 4.70%, (Call 04/23/23)(b)(e)(f) | 200 | 205,625 | ||||||
Hyundai Capital Services Inc., | 400 | 424,250 | ||||||
Kia Motors Corp., 3.00%, 04/25/23(b) | 200 | 208,750 | ||||||
Kookmin Bank | 200 | 205,450 | ||||||
2.88%, 03/25/23(b) | 200 | 209,674 | ||||||
4.35%, (Call 07/02/24)(b)(e)(f) | 200 | 209,625 | ||||||
Korea East-West Power Co. Ltd., 1.75%, 05/06/25(b) | 400 | 412,220 | ||||||
Korea Electric Power Corp. | 200 | 199,813 | ||||||
2.50%, 06/24/24(b) | 200 | 210,500 | ||||||
Korea Gas Corp. | 200 | 219,875 | ||||||
3.50%, 07/21/25(b) | 200 | 222,812 | ||||||
3.50%, 07/02/26(b) | 200 | 226,125 | ||||||
3.88%, 02/12/24(b) | 200 | 218,812 | ||||||
6.25%, 01/20/42(b) | 200 | 304,750 | ||||||
Korea Hydro & Nuclear Power Co. Ltd., 3.75%, 07/25/23(b) | 200 | 216,250 | ||||||
Kyobo Life Insurance Co. Ltd., 3.95%, (Call 07/24/22)(b)(e)(f) | 200 | 204,000 | ||||||
LG Chem Ltd. | 200 | 213,248 | ||||||
3.63%, 04/15/29(b) | 200 | 219,375 | ||||||
NongHyup Bank | 400 | 403,008 | ||||||
3.88%, 07/30/23(b) | 200 | 216,750 | ||||||
POSCO, 2.75%, 07/15/24(b) | 400 | 418,125 | ||||||
Shinhan Bank Co. Ltd. | ||||||||
1.91%, 04/24/25, (3 mo. LIBOR US + | 200 | 207,985 | ||||||
3.88%, 11/05/23(b) | 200 | 217,892 | ||||||
3.88%, 03/24/26(b) | 200 | 219,875 | ||||||
3.88%, 12/07/26 (Call 12/07/21)(b)(f) | 400 | 409,250 | ||||||
Shinhan Financial Group Co. Ltd. | 200 | 199,841 | ||||||
3.34%, 02/05/30 (Call 02/05/25)(b)(f) | 200 | 209,375 | ||||||
5.88%, (Call 08/13/23)(b)(e)(f) | 200 | 215,687 | ||||||
SK Hynix Inc., 3.00%, 09/17/24(b) | 400 | 419,875 | ||||||
SK Innovation Co. Ltd., 4.13%, 07/13/23(b) | 200 | 212,074 | ||||||
SK Telecom Co. Ltd., 3.75%, 04/16/23(b) | 200 | 213,796 | ||||||
Woori Bank | 600 | 616,875 | ||||||
4.50%, (Call 09/27/21)(b)(e)(f) | 400 | 406,875 | ||||||
5.25%, (Call 05/16/22)(b)(e)(f) | 200 | 207,500 | ||||||
|
| |||||||
9,125,937 | ||||||||
Taiwan — 1.0% | ||||||||
Competition Team Technologies Ltd., 3.75%, 03/12/24(b) | 400 | 428,500 | ||||||
Formosa Group Cayman Ltd., | 400 | 426,375 | ||||||
TSMC Global Ltd. | 400 | 396,260 | ||||||
1.00%, 09/28/27 (Call 07/28/27)(h) | 400 | 393,924 | ||||||
1.38%, 09/28/30 (Call 06/28/30)(h) | 400 | 390,488 | ||||||
|
| |||||||
2,035,547 |
Security | Par (000) | Value | ||||||
Thailand — 2.0% | ||||||||
Bangkok Bank PCL/Hong Kong | $ | 600 | $ | 588,750 | ||||
4.05%, 03/19/24(b) | 400 | 431,750 | ||||||
4.45%, 09/19/28(b) | 200 | 228,875 | ||||||
5.00%, 10/03/23(b) | 200 | 221,250 | ||||||
Kasikornbank PCL/Hong Kong, 3.34%, 10/02/31 (Call 10/02/26)(b)(f) | 400 | 391,750 | ||||||
PTT Treasury Center Co. Ltd., 3.70%, 07/16/70 (Call 01/16/70)(b) | 400 | 379,375 | ||||||
PTTEP Treasury Center Co. Ltd. | 400 | 412,000 | ||||||
3.90%, 12/06/59(b) | 200 | 207,500 | ||||||
Siam Commercial Bank PCL/Cayman Islands | 200 | 207,313 | ||||||
3.90%, 02/11/24(b) | 200 | 214,375 | ||||||
4.40%, 02/11/29(b) | 200 | 230,250 | ||||||
Thaioil Treasury Center Co. Ltd. | 200 | 176,000 | ||||||
3.75%, 06/18/50(b) | 400 | 367,375 | ||||||
5.38%, 11/20/48(b) | 200 | 230,437 | ||||||
|
| |||||||
4,287,000 | ||||||||
Togo — 0.1% | ||||||||
Ecobank Transnational Inc., 9.50%, 04/18/24(b) | 200 | 207,625 | ||||||
|
| |||||||
Turkey — 3.7% | ||||||||
Akbank T.A.S. | 400 | 368,500 | ||||||
6.80%, 02/06/26(b) | 200 | 192,563 | ||||||
7.20%, 03/16/27 (Call 03/16/22)(b)(f) | 200 | 181,375 | ||||||
Arcelik AS, 5.00%, 04/03/23(b) | 200 | 199,000 | ||||||
Coca-Cola Icecek AS, 4.22%, 09/19/24 (Call 06/19/24)(b) | 200 | 201,937 | ||||||
KOC Holding AS | 400 | 397,625 | ||||||
6.50%, 03/11/25 (Call 12/11/24)(b) | 200 | 201,500 | ||||||
Mersin Uluslararasi Liman Isletmeciligi AS, 5.38%, 11/15/24 (Call 11/15/22)(b) | 300 | 303,094 | ||||||
Petkim Petrokimya Holding AS, 5.88%, 01/26/23 (Call 01/26/21)(b) | 200 | 195,813 | ||||||
QNB Finansbank AS, 6.88%, 09/07/24(b) | 200 | 202,937 | ||||||
Tupras Turkiye Petrol Rafinerileri AS, 4.50%, 10/18/24 (Call 07/20/24)(b) | 400 | 365,500 | ||||||
Turk Telekomunikasyon AS | 200 | 192,563 | ||||||
6.88%, 02/28/25(b) | 200 | 203,562 | ||||||
Turkcell Iletisim Hizmetleri AS | 200 | 198,625 | ||||||
5.80%, 04/11/28 (Call 01/11/28)(b) | 200 | 192,375 | ||||||
Turkiye Garanti Bankasi AS | 200 | 196,938 | ||||||
6.13%, 05/24/27 (Call 05/24/22)(b)(f) | 400 | 354,375 | ||||||
Turkiye Is Bankasi AS | 600 | 566,062 | ||||||
7.00%, 06/29/28 (Call 06/29/23)(b)(f) | 200 | 179,125 | ||||||
7.75%, 01/22/30 (Call 01/22/25)(b)(f) | 300 | 272,437 | ||||||
Turkiye Sise ve Cam Fabrikalari AS, 6.95%, 03/14/26 (Call 12/14/25)(b) | 400 | 402,875 | ||||||
Turkiye Vakiflar Bankasi TAO | 400 | 359,750 | ||||||
5.75%, 01/30/23(b) | 400 | 384,250 | ||||||
8.13%, 03/28/24(b) | 200 | 199,875 |
SCHEDULE OF INVESTMENTS | 29 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Turkey (continued) | ||||||||
Yapi ve Kredi Bankasi AS | $ | 200 | $ | 193,125 | ||||
5.85%, 06/21/24(b) | 200 | 188,438 | ||||||
6.10%, 03/16/23(b) | 200 | 195,000 | ||||||
8.25%, 10/15/24(b) | 400 | 405,000 | ||||||
8.50%, 03/09/26 (Call 03/09/21)(b)(f) | 300 | 295,875 | ||||||
13.88%, (Call 01/15/24)(b)(e)(f) | 200 | 208,000 | ||||||
|
| |||||||
7,998,094 | ||||||||
Ukraine — 0.5% | ||||||||
Metinvest BV | 200 | 190,625 | ||||||
8.50%, 04/23/26 (Call 01/23/26)(b) | 400 | 402,375 | ||||||
MHP Lux SA, 6.95%, 04/03/26(b) | 200 | 200,375 | ||||||
MHP SE, 7.75%, 05/10/24(b) | 200 | 208,187 | ||||||
|
| |||||||
1,001,562 | ||||||||
United Arab Emirates — 4.5% | ||||||||
Abu Dhabi Commercial Bank PJSC, 4.00%, 03/13/23(b) | 400 | 424,250 | ||||||
Abu Dhabi National Energy Co. PJSC | 400 | 422,250 | ||||||
3.88%, 05/06/24(b) | 200 | 216,562 | ||||||
4.00%, 10/03/49(b) | 200 | 232,312 | ||||||
4.38%, 04/23/25(b) | 200 | 224,812 | ||||||
4.38%, 06/22/26(b) | 200 | 229,187 | ||||||
4.88%, 04/23/30(b) | 400 | 491,000 | ||||||
6.50%, 10/27/36(b) | 300 | 435,469 | ||||||
ADCB Finance Cayman Ltd., 4.00%, 03/29/23(b) | 200 | 212,290 | ||||||
ADIB Capital Invest 2 Ltd., 7.13%, (Call 09/20/23)(b)(e)(f) | 200 | 214,750 | ||||||
Aldar Sukuk Ltd., 4.75%, 09/29/25(b) | 200 | 221,062 | ||||||
BOS Funding Ltd., 4.00%, 09/18/24(b) | 200 | 205,188 | ||||||
DIB Sukuk Ltd. | 400 | 415,625 | ||||||
2.95%, 01/16/26(b) | 400 | 414,875 | ||||||
3.63%, 02/06/23(b) | 200 | 207,500 | ||||||
DIB Tier 1 Sukuk 3 Ltd., 6.25%, | 200 | 209,000 | ||||||
Emaar Sukuk Ltd. | 200 | 193,688 | ||||||
3.88%, 09/17/29(b) | 200 | 187,688 | ||||||
EMG Sukuk Ltd., 4.56%, 06/18/24(b) | 200 | 207,313 | ||||||
Emirates NBD Bank PJSC | 400 | 411,875 | ||||||
6.13%, (Call 04/26/26)(b)(e)(f) | 400 | 415,875 | ||||||
Emirates Telecommunications Group Co. PJSC, 3.50%, 06/18/24(b) | 200 | 218,312 | ||||||
Esic Sukuk Ltd., 3.94%, 07/30/24(b) | 200 | 200,750 | ||||||
Fab Sukuk Co. Ltd. | 200 | 207,813 | ||||||
3.63%, 03/05/23(b) | 200 | 211,187 | ||||||
3.88%, 01/22/24(b) | 200 | 215,500 | ||||||
First Abu Dhabi Bank PJSC, 1.13%, 07/08/24, (3 mo. LIBOR US + 0.900%)(b)(f) | 400 | 396,625 | ||||||
GEMS MENASA Cayman Ltd./GEMS Education Delaware LLC, 7.13%, 07/31/26 (Call 07/31/22)(b) | 200 | 198,063 | ||||||
MAF Global Securities Ltd. | 200 | 213,500 | ||||||
5.50%, (Call 09/07/22)(b)(e)(f) | 200 | 195,188 | ||||||
MAF Sukuk Ltd. | 200 | 207,750 | ||||||
4.64%, 05/14/29(b) | 200 | 218,187 | ||||||
Mashreqbank PSC, 4.25%, 02/26/24(b) | 200 | 213,500 | ||||||
Rakfunding Cayman Ltd., 4.13%, 04/09/24(b) | 200 | 212,625 |
Security | Par/ Shares (000) | Value | ||||||
United Arab Emirates (continued) | ||||||||
Ruwais Power Co. PJSC, 6.00%, 08/31/36(b) | $ | 200 | $ | 262,000 | ||||
Shelf Drilling Holdings Ltd., 8.25%, 02/15/25 (Call 02/15/21)(b) | 200 | 64,000 | ||||||
SIB Sukuk Co. III Ltd., 4.23%, 04/18/23(b) | 200 | 213,250 | ||||||
|
| |||||||
9,640,821 | ||||||||
United Kingdom — 0.1% | ||||||||
Huarong Finance 2019 Co. Ltd., 3.75%, 05/29/24(b) | 200 | 208,750 | ||||||
|
| |||||||
United States — 0.1% | ||||||||
Trust Fibra Uno, 4.87%, 01/15/30 | 200 | 208,000 | ||||||
|
| |||||||
Vietnam — 0.1% | ||||||||
Mong Duong Finance Holdings BV, 5.13%, 05/07/29 (Call 05/07/23)(b) | 250 | 254,766 | ||||||
|
| |||||||
Zambia — 1.3% | ||||||||
First Quantum Minerals Ltd. | 400 | 397,000 | ||||||
6.88%, 03/01/26 (Call 03/01/21)(b) | 400 | 397,625 | ||||||
6.88%, 10/15/27 (Call 10/15/23)(h) | 600 | 599,250 | ||||||
7.25%, 04/01/23 (Call 11/30/20)(b) | 800 | 804,250 | ||||||
7.50%, 04/01/25 (Call 11/30/20)(b) | 600 | 600,150 | ||||||
|
| |||||||
2,798,275 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 97.5% | 209,313,221 | |||||||
|
| |||||||
Foreign Government Obligations(a) | ||||||||
Nigeria — 0.5% | ||||||||
Africa Finance Corp. | 400 | 410,125 | ||||||
3.75%, 10/30/29(b) | 400 | 414,915 | ||||||
3.88%, 04/13/24(b) | 200 | 210,063 | ||||||
4.38%, 04/17/26(b) | 200 | 214,000 | ||||||
|
| |||||||
1,249,103 | ||||||||
South Korea — 0.1% | ||||||||
Industrial Bank of Korea, 1.04%, 06/22/25(b) | 200 | 199,947 | ||||||
|
| |||||||
Supranational — 0.4% | ||||||||
African Export-Import Bank (The) | 400 | 412,125 | ||||||
5.25%, 10/11/23(b) | 400 | 432,125 | ||||||
|
| |||||||
844,250 | ||||||||
|
| |||||||
Total Foreign Government Obligations — 1.0% |
| 2,293,300 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 6.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.20%(j)(k)(l) | 11,546 | 11,553,871 |
30 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Corporate Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares (000) | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.04%(j)(k) | $ | 2,577 | $ | 2,577,000 | ||||
|
| |||||||
14,130,871 | ||||||||
|
| |||||||
Total Short-Term Investments — 6.6% | 14,130,871 | |||||||
|
| |||||||
Total Investments in Securities — 105.1% | 225,737,392 | |||||||
Other Assets, Less Liabilities — (5.1)% | (11,005,921 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 214,731,471 | ||||||
|
|
(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) | Issuer filed for bankruptcy and/or is in default. |
(d) | All or a portion of this security is on loan. |
(e) | Perpetual security with no stated maturity date. |
(f) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(g) | Payment-in-kind (“PIK”) bond which gives the issuer an option to make coupon payments in cash or in the form of additional bonds. Stated interest rate represents the cash coupon rate. |
(h) | 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. |
(i) | Zero-coupon bond. |
(j) | Affiliate of the Fund. |
(k) | Annualized 7-day yield as of period-end. |
(l) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 10/31/19 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 10/31/20 | Shares 10/31/20 (000) | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | $ | 17,281,365 | $ | — | $ | (5,725,069 | )(a) | $ | (8,124 | ) | $ | 5,699 | $ | 11,553,871 | 11,546 | $ | 107,560 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,688,000 | 889,000 | (a) | — | — | — | 2,577,000 | 2,577 | 9,024 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (8,124 | ) | $ | 5,699 | $ | 14,130,871 | $ | 116,584 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 209,313,221 | $ | — | $ | 209,313,221 | ||||||||
Foreign Government Obligations | — | 2,293,300 | — | 2,293,300 | ||||||||||||
Money Market Funds | 14,130,871 | — | — | 14,130,871 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 14,130,871 | $ | 211,606,521 | $ | — | $ | 225,737,392 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 31 |
Schedule of Investments October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Corporate Bonds & Notes(a) |
| |||||||
Argentina — 0.8% | ||||||||
Arcor SAIC, 6.00%, 07/06/23 (Call 11/30/20)(b) | $ | 400 | $ | 371,375 | ||||
MSU Energy SA/UGEN SA/UENSA SA, 6.88%, 02/01/25 (Call 02/01/22)(b) | 150 | 78,469 | ||||||
Pampa Energia SA, 7.50%, 01/24/27 (Call 01/24/22)(b) | 400 | 278,000 | ||||||
Tecpetrol SA, 4.88%, 12/12/22 | 100 | 91,594 | ||||||
Transportadora de Gas del Sur SA, 6.75%, 05/02/25 (Call 05/02/22)(b)(c) | 300 | 245,531 | ||||||
YPF SA | 600 | 317,250 | ||||||
7.00%, 12/15/47 (Call 06/15/47)(b) | 300 | 151,500 | ||||||
8.50%, 07/28/25(b) | 650 | 374,969 | ||||||
8.50%, 06/27/29 (Call 03/27/29)(b) | 250 | 140,078 | ||||||
8.75%, 04/04/24(b) | 666 | 434,165 | ||||||
|
| |||||||
2,482,931 | ||||||||
Azerbaijan — 0.5% | ||||||||
International Bank of Azerbaijan OJSC, 3.50%, 09/01/24(b) | 550 | 504,797 | ||||||
Southern Gas Corridor CJSC, 6.88%, 03/24/26 (b) | 1,000 | 1,139,062 | ||||||
|
| |||||||
1,643,859 | ||||||||
Bahrain — 0.3% | ||||||||
BBK BSC, 5.50%, 07/09/24(b) | 200 | 201,438 | ||||||
Oil and Gas Holding Co. BSCC (The), 7.50%, 10/25/27(b)(c) | 600 | 631,781 | ||||||
|
| |||||||
833,219 | ||||||||
Brazil — 13.1% | ||||||||
Banco Bradesco SA/Cayman Islands, 3.20%, 01/27/25(b) | 400 | 404,125 | ||||||
Banco BTG Pactual SA/Cayman Islands | 400 | 408,375 | ||||||
5.50%, 01/31/23(b)(c) | 300 | 313,875 | ||||||
7.75%, 02/15/29 (Call 02/15/24)(b)(c)(d) | 200 | 204,750 | ||||||
Banco do Brasil SA/Cayman | 400 | 425,000 | ||||||
4.75%, 03/20/24(b) | 400 | 425,250 | ||||||
4.88%, 04/19/23(b) | 400 | 421,300 | ||||||
5.88%, 01/19/23(b) | 400 | 427,125 | ||||||
6.25%, (Call 04/15/24)(b)(c)(d)(e) | 800 | 768,000 | ||||||
9.00%, (Call 06/18/24)(b)(d)(e) | 1,000 | 1,088,000 | ||||||
9.25%, (Call 04/15/23)(b)(d)(e) | 600 | 652,500 | ||||||
Banco Votorantim SA, 4.38%, 07/29/25(f) | 200 | 207,250 | ||||||
Braskem Finance Ltd., 6.45%, 02/03/24 | 800 | 851,875 | ||||||
Braskem Netherlands Finance BV | 200 | 190,229 | ||||||
4.50%, 01/31/30(b) | 800 | 741,192 | ||||||
5.88%, 01/31/50(b) | 800 | 743,500 | ||||||
8.50%, 01/23/81 (Call 10/24/25)(b)(d) | 200 | 203,375 | ||||||
BRF SA, 4.88%, 01/24/30 (Call 10/24/29)(b) | 400 | 400,608 | ||||||
Cable Onda SA, 4.50%, 01/30/30 (Call 01/30/25)(b) | 200 | 211,813 | ||||||
Cemig Geracao e Transmissao SA, 9.25%, 12/05/24 (Call 12/05/23)(b) | 800 | 900,000 | ||||||
Centrais Eletricas Brasileiras SA | 400 | 400,125 | ||||||
4.63%, 02/04/30(b) | 200 | 202,500 | ||||||
Cosan Ltd., 5.50%, 09/20/29 (Call 09/20/24)(b) | 400 | 413,250 | ||||||
Cosan Luxembourg SA, 7.00%, 01/20/27 (Call 01/20/22)(b) | 600 | 639,187 | ||||||
CSN Islands XII Corp., 7.00%, | 600 | 534,562 | ||||||
CSN Resources SA | 400 | 415,000 | ||||||
7.63%, 04/17/26 (Call 04/17/22)(b) | 600 | 614,062 | ||||||
Embraer Netherlands Finance BV 5.05%, 06/15/25 | 600 | 579,600 |
Security | Par (000) | Value | ||||||
Brazil (continued) | ||||||||
5.40%, 02/01/27 | $ | 200 | $ | 189,379 | ||||
Gol Finance SA, 7.00%, 01/31/25 (Call 01/31/22)(b) | 300 | 218,916 | ||||||
Hidrovias International Finance SARL, 5.95%, 01/24/25 (Call 01/24/22)(b) | 200 | 201,625 | ||||||
InterCement Financial Operations BV, 5.75%, 07/17/24 (Call 11/30/20)(b) | 200 | 136,500 | ||||||
Itau Unibanco Holding SA/Cayman Island | 600 | 590,437 | ||||||
4.63%, (Call 02/27/25)(b)(d)(e) | 400 | 345,000 | ||||||
5.13%, 05/13/23(b) | 920 | 974,142 | ||||||
6.13%, (Call 12/12/22)(b)(d)(e) | 600 | 572,325 | ||||||
JBS Investments II GmbH | 400 | 419,500 | ||||||
7.00%, 01/15/26 (Call 01/15/22)(b) | 400 | 426,396 | ||||||
JBS USA LUX SA/JBS USA Finance Inc. | 350 | 361,550 | ||||||
6.75%, 02/15/28 (Call 02/15/23)(b)(c) | 500 | 547,894 | ||||||
JSL Europe SA, 7.75%, 07/26/24 (Call 07/26/21)(b) | 400 | 406,650 | ||||||
JSM Global Sarl, 4.75%, 10/20/30 (Call 07/20/30)(f) | 200 | 202,144 | ||||||
Klabin Austria GmbH | 400 | 441,005 | ||||||
7.00%, 04/03/49 (Call 10/03/48)(b) | 400 | 457,000 | ||||||
MARB BondCo PLC | 600 | 621,780 | ||||||
7.00%, 03/15/24 (Call 11/30/20)(b) | 400 | 411,000 | ||||||
Minerva Luxembourg SA, 6.50%, 09/20/26 (Call 09/20/21)(b) | 500 | 520,000 | ||||||
Natura Cosmeticos SA, 5.38%, 02/01/23 (Call 02/01/21)(b) | 400 | 411,375 | ||||||
NBM U.S. Holdings Inc. | 200 | 215,750 | ||||||
7.00%, 05/14/26 (Call 05/14/22)(b) | 400 | 424,400 | ||||||
Odebrecht Drilling Norbe VIII/IX Ltd., 7.35%, (7.35% PIK), 12/01/26 (Call 12/01/20)(b)(c)(g) | 412 | 103,961 | ||||||
Odebrecht Offshore Drilling Finance Ltd., 7.72%, (7.72% PIK), 12/01/26 | 620 | 60,965 | ||||||
Oi SA, 10.00%, (4.00% PIK), 07/27/25(g) | 800 | 782,750 | ||||||
Petrobras Global Finance BV | 200 | 212,320 | ||||||
5.09%, 01/15/30 | 1,900 | 1,989,737 | ||||||
5.30%, 01/27/25 | 300 | 333,563 | ||||||
5.60%, 01/03/31 (Call 10/03/30) | 700 | 752,920 | ||||||
5.63%, 05/20/43 | 300 | 306,656 | ||||||
5.75%, 02/01/29 | 792 | 881,227 | ||||||
6.00%, 01/27/28 | 1,068 | 1,196,534 | ||||||
6.25%, 03/17/24 | 300 | 338,250 | ||||||
6.75%, 01/27/41 | 500 | 555,156 | ||||||
6.75%, 06/03/50 (Call 12/03/49) | 800 | 874,500 | ||||||
6.85%, 06/05/2115 | 1,133 | 1,215,497 | ||||||
6.88%, 01/20/40 | 500 | 562,500 | ||||||
6.90%, 03/19/49 | 1,000 | 1,131,640 | ||||||
7.25%, 03/17/44 | 686 | 793,831 | ||||||
7.38%, 01/17/27(c) | 1,001 | 1,207,897 | ||||||
8.75%, 05/23/26(c) | 779 | 993,225 | ||||||
Rede D’or Finance Sarl, 4.95%, 01/17/28 (Call 10/17/27)(b) | 800 | 823,000 | ||||||
Rumo Luxembourg Sarl | 200 | 209,250 | ||||||
7.38%, 02/09/24 (Call 02/09/21)(b)(c) | 400 | 417,625 | ||||||
Ultrapar International SA | 400 | 430,000 | ||||||
5.25%, 06/06/29(b)(c) | 200 | 209,090 |
32 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Brazil (continued) | ||||||||
Usiminas International Sarl, 5.88%, 07/18/26 | $ | 400 | $ | 415,125 | ||||
|
| |||||||
39,678,415 | ||||||||
Canada — 0.1% | ||||||||
CIFI Holdings Group Co. Ltd., 5.95%, 10/20/25 (Call 07/20/23)(b) | 400 | 412,000 | ||||||
|
| |||||||
Chile — 0.4% | ||||||||
AES Gener SA, 7.13%, 03/26/79 (Call 04/07/24)(b)(d) | 400 | 412,250 | ||||||
Corp. Group Banking SA, 6.75%, 03/15/23 (Call 11/30/20)(b) | 250 | 68,672 | ||||||
Kenbourne Invest SA, 6.88%, 11/26/24 (Call 11/26/21)(b) | 200 | 208,938 | ||||||
VTR Comunicaciones SpA, 5.13%, 01/15/28 (Call 07/15/23)(b) | 400 | 421,750 | ||||||
VTR Finance NV, 6.38%, 07/15/28 (Call 07/15/23)(b) | 200 | 213,187 | ||||||
|
| |||||||
1,324,797 | ||||||||
China — 4.5% | ||||||||
Agile Group Holdings Ltd., 7.88%, (Call 07/31/24)(b)(d)(e) | 800 | 815,250 | ||||||
Central Plaza Development Ltd., | 200 | 197,938 | ||||||
CFLD Cayman Investment Ltd., 8.60%, 04/08/24(b) | 600 | 550,875 | ||||||
China Evergrande Group | 500 | 376,250 | ||||||
8.75%, 06/28/25 (Call 06/28/21)(b) | 2,000 | 1,465,000 | ||||||
10.50%, 04/11/24 (Call 04/11/22)(b) | 400 | 314,125 | ||||||
China SCE Group Holdings Ltd., 7.38%, 04/09/24 (Call 04/09/22)(b) | 400 | 409,125 | ||||||
China Shenhua Overseas Capital Co. Ltd., | 400 | 423,125 | ||||||
CIFI Holdings Group Co. Ltd., 6.45%, 11/07/24 (Call 11/07/22)(b) | 400 | 420,125 | ||||||
Easy Tactic Ltd., 5.88%, 02/13/23 (Call 11/30/20)(b) | 400 | 338,204 | ||||||
Greenland Global Investment Ltd., 5.88%, 07/03/24(b) | 400 | 365,625 | ||||||
Kaisa Group Holdings Ltd., 9.38%, 06/30/24 | 1,600 | 1,447,750 | ||||||
KWG Group Holdings Ltd., 5.88%, 11/10/24 | 400 | 400,375 | ||||||
Lenovo Group Ltd. | 400 | 420,625 | ||||||
5.88%, 04/24/25(b) | 400 | 455,260 | ||||||
Proven Honour Capital Ltd. | 600 | 623,250 | ||||||
4.13%, 05/06/26(b) | 1,000 | 1,038,750 | ||||||
Scenery Journey Ltd., 13.75%, 11/06/23 (Call 11/06/21)(b) | 300 | 253,500 | ||||||
Shui On Development Holding Ltd., 6.40%, (Call 06/20/22)(b)(d)(e) | 200 | 196,813 | ||||||
Sino-Ocean Land Treasure III Ltd., 4.90%, (Call 09/21/22)(b)(d)(e) | 400 | 336,000 | ||||||
Sunac China Holdings Ltd., 8.35%, 04/19/23 (Call 04/19/21)(b) | 400 | 409,750 | ||||||
Tsinghua Unic Ltd., 5.38%, 01/31/23(b) | 400 | 140,000 | ||||||
Wanda Properties International Co. Ltd., 7.25%, 01/29/24(b) | 400 | 392,125 | ||||||
Well Hope Development Ltd., 3.88%, (Call 10/19/22)(b)(d)(e) | 600 | 603,654 | ||||||
Yingde Gases Investment Ltd., 6.25%, 01/19/23 (Call 01/19/21)(b) | 200 | 206,562 | ||||||
Yuzhou Group Holdings Co. Ltd. | 400 | 404,875 | ||||||
8.38%, 10/30/24 (Call 10/30/22)(b) | 200 | 207,062 | ||||||
8.50%, 02/26/24 (Call 02/26/22)(b) | 400 | 416,125 | ||||||
|
| |||||||
13,628,118 | ||||||||
Colombia — 1.2% | ||||||||
AI Candelaria Spain SLU, 7.50%, 12/15/28 (Call 09/15/28)(b)(c) | 550 | 594,690 |
Security | Par (000) | Value | ||||||
Colombia (continued) | ||||||||
Banco de Bogota SA | $ | 200 | $ | 210,313 | ||||
6.25%, 05/12/26(b) | 600 | 657,000 | ||||||
Bancolombia SA | 400 | 387,625 | ||||||
4.88%, 10/18/27 (Call 10/18/22)(d) | 400 | 394,250 | ||||||
Colombia Telecomunicaciones SA ESP, 4.95%, 07/17/30 (Call 04/17/30)(b) | 200 | 212,000 | ||||||
Grupo Aval Ltd., 4.38%, 02/04/30 | 200 | 194,250 | ||||||
Millicom International Cellular SA | 200 | 209,875 | ||||||
6.25%, 03/25/29 (Call 03/25/24)(b) | 400 | 442,200 | ||||||
6.63%, 10/15/26 (Call 10/15/21)(b) | 200 | 216,000 | ||||||
|
| |||||||
3,518,203 | ||||||||
Congo — 0.1% | ||||||||
HTA Group Ltd./Mauritius, 7.00%, 12/18/25 (Call 06/18/22)(b) | 200 | 209,181 | ||||||
|
| |||||||
Costa Rica — 0.1% | ||||||||
Globo Comunicacao e Participacoes SA, 4.88%, 01/22/30(b) | 200 | 198,438 | ||||||
|
| |||||||
Egypt — 0.1% | ||||||||
Embraer Netherlands Finance BV, 6.95%, 01/17/28(b) | 400 | 399,783 | ||||||
|
| |||||||
Ghana — 0.1% | ||||||||
Kosmos Energy Ltd., 7.13%, 04/04/26 (Call 04/04/22)(b) | 200 | 171,750 | ||||||
Tullow Oil PLC, 7.00%, 03/01/25 | 400 | 206,375 | ||||||
|
| |||||||
378,125 | ||||||||
Guatemala — 0.2% | ||||||||
Comunicaciones Celulares SA Via Comcel Trust, 6.88%, 02/06/24 (Call 11/18/20)(b) | 600 | 613,500 | ||||||
|
| |||||||
Hong Kong — 2.5% | ||||||||
Bank of Communications Hong Kong Ltd., 3.73%, (Call 03/03/25)(b)(d)(e) | 250 | 250,703 | ||||||
Bank of East Asia Ltd. (The) | 650 | 647,766 | ||||||
5.88%, (Call 09/19/24)(b)(d)(e) | 250 | 254,141 | ||||||
Celestial Dynasty Ltd., 4.25%, 06/27/29(b) | 800 | 807,500 | ||||||
China CITIC Bank International Ltd., 7.10%, (Call 11/06/23)(b)(d)(e) | 400 | 432,375 | ||||||
FWD Group Ltd. | 200 | 205,062 | ||||||
6.38%, (Call 09/13/24)(b)(d)(e) | 800 | 795,250 | ||||||
Henderson Land MTN Ltd., 2.38%, 05/27/25(b) | 200 | 201,114 | ||||||
Industrial & Commercial Bank of China Asia Ltd., 4.25%, (Call 07/21/21)(b)(d)(e) | 600 | 605,437 | ||||||
Li & Fung Ltd., 5.25%, (Call 11/03/21)(b)(e) | 200 | 146,500 | ||||||
Nanyang Commercial Bank Ltd., 5.00%, | 800 | 797,500 | ||||||
New World China Land Ltd., 4.75%, 01/23/27(b) | 400 | 413,000 | ||||||
NWD Finance BVI Ltd. | 600 | 628,125 | ||||||
6.25%, (Call 03/07/24)(b)(e) | 600 | 617,812 | ||||||
NWD MTN Ltd., 4.13%, 07/18/29(b) | 800 | 807,750 | ||||||
|
| |||||||
7,610,035 | ||||||||
India — 1.8% | ||||||||
ABJA Investment Co. Pte Ltd. | 600 | 582,168 | ||||||
5.95%, 07/31/24(b) | 425 | 442,531 | ||||||
Adani Green Energy UP Ltd./Prayatna Developers Pvt Ltd./Parampujya Solar Energy, 6.25%, 12/10/24(b) | 400 | 432,125 |
SCHEDULE OF INVESTMENTS | 33 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
India (continued) | ||||||||
Delhi International Airport Ltd. | $ | 200 | $ | 203,500 | ||||
6.45%, 06/04/29(b) | 200 | 201,125 | ||||||
Future Retail Ltd., 5.60%, 01/22/25 (Call 01/22/23)(b) | 200 | 137,000 | ||||||
Greenko Dutch BV, 5.25%, 07/24/24 (Call 11/30/20)(b)(c) | 400 | 409,750 | ||||||
Greenko Solar Mauritius Ltd. | 400 | 410,125 | ||||||
5.95%, 07/29/26 (Call 07/29/22)(b) | 200 | 210,312 | ||||||
JSW Steel Ltd., 5.95%, 04/18/24(b) | 400 | 409,000 | ||||||
Network i2i Ltd., 5.65%, (Call 01/15/25)(b)(d)(e) | 200 | 200,300 | ||||||
ReNew Power Synthetic, 6.67%, 03/12/24 (Call 03/12/21)(b) | 200 | 209,313 | ||||||
Vedanta Resources Finance II PLC, 9.25%, 04/23/26 (Call 04/23/23)(b) | 200 | 125,250 | ||||||
Vedanta Resources Ltd. | 400 | 234,500 | ||||||
7.13%, 05/31/23(b) | 300 | 183,225 | ||||||
Wynn Macau Ltd. | 800 | 740,000 | ||||||
5.50%, 01/15/26 (Call 06/15/22)(b) | 200 | 193,750 | ||||||
|
| |||||||
5,323,974 | ||||||||
Indonesia — 0.7% | ||||||||
Adaro Indonesia PT, 4.25%, 10/31/24 (Call 10/31/22)(b) | 500 | 494,219 | ||||||
Indika Energy Capital III Pte Ltd., 5.88%, 11/09/24 (Call 11/09/21)(b) | 400 | 375,125 | ||||||
Medco Oak Tree Pte Ltd., 7.38%, 05/14/26 (Call 05/14/23)(b) | 800 | 774,750 | ||||||
Saka Energi Indonesia PT, 4.45%, 05/05/24(b) | 400 | 366,625 | ||||||
Star Energy Geothermal Wayang Windu Ltd., 6.75%, 04/24/33 (Call 04/24/26)(b) | 181 | 199,200 | ||||||
|
| |||||||
2,209,919 | ||||||||
Israel — 2.0% | ||||||||
Leviathan Bond Ltd. | 200 | 205,240 | ||||||
6.50%, 06/30/27 (Call 12/30/26)(f) | 400 | 413,500 | ||||||
6.75%, 06/30/30 (Call 12/30/29)(f) | 200 | 206,750 | ||||||
Teva Pharmaceutical Finance Co. BV, 2.95%, 12/18/22(c) | 350 | 338,406 | ||||||
Teva Pharmaceutical Finance Co. LLC, 6.15%, 02/01/36 | 100 | 100,000 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 1,375 | 1,304,078 | ||||||
3.15%, 10/01/26 | 1,600 | 1,404,000 | ||||||
4.10%, 10/01/46(c) | 1,050 | 871,500 | ||||||
6.00%, 04/15/24 (Call 01/15/24) | 400 | 400,069 | ||||||
6.75%, 03/01/28 (Call 12/01/27) | 800 | 836,010 | ||||||
|
| |||||||
6,079,553 | ||||||||
Jamaica — 0.3% | ||||||||
Digicel Group 0.5 Ltd. (2.00% PIK), 10.00%, 04/01/24 (Call 11/16/20)(g) | 652 | 493,394 | ||||||
Digicel International Finance Ltd./Digicel Holdings Bermuda Ltd., 8.75%, 05/25/24 (Call 05/25/21)(b)(c) | 200 | 199,500 | ||||||
Digicel Ltd., 6.75%, 03/01/23 (Call 11/16/20)(b) | 400 | 248,000 | ||||||
|
| |||||||
940,894 | ||||||||
Jordan — 0.1% | ||||||||
Hikma Finance USA LLC, 3.25%, 07/09/25(b) | 200 | 205,400 | ||||||
|
| |||||||
Kazakhstan — 0.0% | ||||||||
Halyk Savings Bank of Kazakhstan JSC, 5.50%, 12/21/22 (Call 11/30/20)(b) | 147 | 146,342 | ||||||
|
| |||||||
Kuwait — 0.3% | ||||||||
Burgan Bank SAK, 5.75%, | 200 | 197,563 |
Security | Par (000) | Value | ||||||
Kuwait (continued) | ||||||||
Kuwait Projects Co. SPC Ltd. | $ | 400 | $ | 397,250 | ||||
4.50%, 02/23/27(b) | 200 | 198,687 | ||||||
|
| |||||||
793,500 | ||||||||
Luxembourg — 0.6% | ||||||||
Altice Financing SA | 400 | 388,000 | ||||||
7.50%, 05/15/26 (Call 05/15/21)(b) | 1,400 | 1,463,140 | ||||||
|
| |||||||
1,851,140 | ||||||||
Macau — 1.3% | ||||||||
Melco Resorts Finance Ltd. | 800 | 804,000 | ||||||
5.38%, 12/04/29 (Call 12/04/24)(b) | 600 | 578,250 | ||||||
5.75%, 07/21/28 (Call 07/21/23)(b) | 200 | 199,698 | ||||||
MGM China Holdings Ltd. | 200 | 200,312 | ||||||
5.38%, 05/15/24 (Call 05/15/21)(b) | 800 | 817,650 | ||||||
Studio City Finance Ltd. | 400 | 400,500 | ||||||
6.50%, 01/15/28 (Call 07/15/23)(b) | 200 | 197,040 | ||||||
Wynn Macau Ltd. | 400 | 390,000 | ||||||
5.50%, 10/01/27 (Call 10/01/22)(b) | 200 | 187,190 | ||||||
5.63%, 08/26/28 (Call 08/26/23)(f) | 200 | 191,250 | ||||||
|
| |||||||
3,965,890 | ||||||||
Mexico — 8.4% | ||||||||
Axtel SAB de CV, 6.38%, 11/14/24 (Call 11/30/20)(b)(c) | 200 | 208,000 | ||||||
Banco Mercantil del Norte SA/Grand Cayman | 500 | 498,125 | ||||||
7.50%, (Call 06/27/29)(b)(d)(e) | 200 | 199,320 | ||||||
BBVA Bancomer SA/Texas | 600 | 591,000 | ||||||
5.88%, 09/13/34 (Call 09/13/29)(b)(d) | 350 | 364,437 | ||||||
Braskem Idesa SAPI, 7.45%, 11/15/29 (Call 11/15/24)(b) | 400 | 378,208 | ||||||
Cemex SAB de CV | 400 | 422,060 | ||||||
5.45%, 11/19/29 (Call 11/19/24)(b)(c) | 400 | 423,120 | ||||||
5.70%, 01/11/25 (Call 11/30/20)(b) | 400 | 408,875 | ||||||
7.38%, 06/05/27 (Call 06/05/23)(b) | 400 | 441,000 | ||||||
7.75%, 04/16/26 (Call 04/16/21)(b) | 600 | 634,800 | ||||||
Grupo Bimbo SAB de CV, 5.95%, (Call 04/17/23)(b)(d)(e) | 200 | 212,438 | ||||||
Nemak SAB de CV, 4.75%, 01/23/25 (Call 01/23/21)(b) | 200 | 204,206 | ||||||
Petroleos Mexicanos | 200 | 176,360 | ||||||
4.88%, 01/18/24(c) | 1,000 | 976,919 | ||||||
5.35%, 02/12/28 | 200 | 170,838 | ||||||
5.95%, 01/28/31 (Call 10/28/30) | 2,500 | 2,089,375 | ||||||
6.35%, 02/12/48 | 100 | 75,703 | ||||||
6.49%, 01/23/27 (Call 11/23/26) | 200 | 186,050 | ||||||
6.50%, 03/13/27 | 3,500 | 3,230,937 | ||||||
6.50%, 01/23/29 | 200 | 178,420 | ||||||
6.63%, 06/15/35 | 400 | 329,424 | ||||||
6.75%, 09/21/47 | 3,850 | 2,981,825 | ||||||
6.84%, 01/23/30 (Call 10/23/29) | 2,800 | 2,503,463 | ||||||
6.88%, 08/04/26 | 2,300 | 2,207,770 | ||||||
6.95%, 01/28/60 (Call 07/28/59) | 2,300 | 1,798,600 | ||||||
7.69%, 01/23/50 (Call 07/23/49) | 4,500 | 3,734,775 | ||||||
|
| |||||||
25,626,048 |
34 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Morocco — 0.5% | ||||||||
OCP SA | $ | 800 | $ | 869,750 | ||||
6.88%, 04/25/44(b) | 400 | 501,000 | ||||||
|
| |||||||
1,370,750 | ||||||||
Nigeria — 0.2% | ||||||||
IHS Netherlands Holdco BV | 200 | 201,937 | ||||||
8.00%, 09/18/27 (Call 09/18/22)(b) | 400 | 407,500 | ||||||
|
| |||||||
609,437 | ||||||||
Oman — 0.3% | ||||||||
National Bank of Oman SAOG, | 200 | 199,687 | ||||||
Oztel Holdings SPC Ltd. | 400 | 399,000 | ||||||
6.63%, 04/24/28(b) | 300 | 293,625 | ||||||
|
| |||||||
892,312 | ||||||||
Panama — 0.4% | ||||||||
C&W Senior Financing DAC | 800 | 842,400 | ||||||
7.50%, 10/15/26 (Call 10/15/21)(b) | 400 | 422,520 | ||||||
|
| |||||||
1,264,920 | ||||||||
Paraguay — 0.1% | ||||||||
Telefonica Celular del Paraguay SA, 5.88%, 04/15/27 (Call 04/15/22)(b) | 200 | 211,188 | ||||||
|
| |||||||
Peru — 0.6% | ||||||||
Hunt Oil Co. of Peru LLC Sucursal Del Peru, 6.38%, 06/01/28(b) | 400 | 400,250 | ||||||
Inkia Energy Ltd., 5.88%, 11/09/27 (Call 11/09/22)(b)(c) | 200 | 207,625 | ||||||
Nexa Resources SA, 5.38%, 05/04/27 (Call 02/04/27)(b) | 600 | 633,900 | ||||||
Orazul Energy Egenor SCA, 5.63%, 04/28/27 (Call 04/28/22)(b) | 200 | 206,375 | ||||||
Peru LNG Srl, 5.38%, 03/22/30(b) | 400 | 304,125 | ||||||
|
| |||||||
1,752,275 | ||||||||
Philippines — 0.8% | ||||||||
JGSH Philippines Ltd. | 200 | 204,000 | ||||||
4.38%, 01/23/23(b) | 400 | 422,216 | ||||||
Jollibee Worldwide Pte Ltd., 3.90%, (Call 01/23/25)(b)(d)(e) | 400 | 364,250 | ||||||
Petron Corp., 4.60%, (Call 07/19/23)(b)(d)(e) | 200 | 186,312 | ||||||
San Miguel Crop., 5.50%, | 400 | 397,000 | ||||||
SMC Global Power Holdings Corp., 6.50%, (Call 04/25/24)(b)(d)(e) | 1,000 | 987,500 | ||||||
|
| |||||||
2,561,278 | ||||||||
Russia — 2.0% | ||||||||
Alfa Bank AO Via Alfa Bond Issuance PLC | 600 | 591,937 | ||||||
6.95%, (Call 04/30/23)(b)(d)(e) | 200 | 199,000 | ||||||
Credit Bank of Moscow Via CBOM Finance PLC, 8.88%, (Call 11/10/22)(b)(d)(e) | 400 | 369,000 | ||||||
Eurochem Finance DAC, 5.50%, 03/13/24(b) | 400 | 437,000 | ||||||
Evraz PLC | 400 | 435,250 | ||||||
5.38%, 03/20/23(b) | 200 | 213,500 | ||||||
Metalloinvest Finance DAC, 4.85%, 05/02/24(b) | 400 | 431,750 | ||||||
Petropavlovsk 2016 Ltd., 8.13%, 11/14/22 (Call 08/14/22)(b) | 200 | 199,250 | ||||||
Polyus Finance PLC, 5.25%, 02/07/23(b) | 400 | 425,625 | ||||||
Uralkali OJSC Via Uralkali Finance DAC, | 400 | 413,875 | ||||||
VEON Holdings BV | ||||||||
4.00%, 04/09/25 (Call 01/09/25)(b) | 400 | 417,625 |
Security | Par (000) | Value | ||||||
Russia (continued) | ||||||||
4.95%, 06/16/24 (Call 03/16/24)(b) | $ | 400 | $ | 431,250 | ||||
5.95%, 02/13/23(b) | 400 | 432,375 | ||||||
VTB Bank PJSC Via VTB Eurasia DAC, 9.50%, (Call 12/06/22)(b)(d)(e) | 1,050 | 1,130,391 | ||||||
|
| |||||||
6,127,828 | ||||||||
Saudi Arabia — 0.2% | ||||||||
Dar Al-Arkan Sukuk Co. Ltd., 6.75%, 02/15/25(b) | 600 | 570,938 | ||||||
|
| |||||||
Singapore — 0.1% | ||||||||
Olam International Ltd., 5.35%, | 200 | 199,688 | ||||||
|
| |||||||
South Africa — 1.2% | ||||||||
Eskom Holdings SOC Ltd. | 400 | 412,375 | ||||||
6.75%, 08/06/23(b) | 617 | 583,451 | ||||||
7.13%, 02/11/25(b) | 460 | 430,675 | ||||||
FirstRand Bank Ltd., 6.25%, 04/23/28 (Call 04/23/23)(b)(d) | 200 | 205,000 | ||||||
Gold Fields Orogen Holdings BVI Ltd. | 200 | 218,500 | ||||||
6.13%, 05/15/29 (Call 02/15/29)(b) | 200 | 238,125 | ||||||
MTN Mauritius Investments Ltd., 4.76%, 11/11/24(b) | 600 | 615,187 | ||||||
Sasol Financing USA LLC | 600 | 576,188 | ||||||
6.50%, 09/27/28 (Call 06/27/28) | 400 | 383,000 | ||||||
|
| |||||||
3,662,501 | ||||||||
South Korea — 0.2% | ||||||||
Woori Bank | 400 | 411,250 | ||||||
5.25%, (Call 05/16/22)(b)(d)(e) | 200 | 207,500 | ||||||
|
| |||||||
618,750 | ||||||||
Thailand — 0.3% | ||||||||
Bangkok Bank PCL/Hong Kong, 3.73%, 09/25/34 (Call 09/25/29)(b)(d) | 600 | 588,750 | ||||||
Kasikornbank PCL/Hong Kong, 3.34%, 10/02/31 (Call 10/02/26)(b)(d) | 400 | 391,750 | ||||||
|
| |||||||
980,500 | ||||||||
Togo — 0.1% | ||||||||
Ecobank Transnational Inc., 9.50%, 04/18/24(b) | 200 | 207,625 | ||||||
|
| |||||||
Turkey — 2.7% | ||||||||
Akbank T.A.S. | 200 | 184,250 | ||||||
6.80%, 02/06/26(b) | 200 | 192,563 | ||||||
7.20%, 03/16/27 (Call 03/16/22)(b)(d) | 200 | 181,375 | ||||||
Arcelik AS, 5.00%, 04/03/23(b) | 200 | 199,000 | ||||||
KOC Holding AS | 400 | 397,625 | ||||||
6.50%, 03/11/25 (Call 12/11/24)(b) | 400 | 403,000 | ||||||
Mersin Uluslararasi Liman Isletmeciligi AS, 5.38%, 11/15/24 (Call 11/15/22)(b) | 200 | 202,063 | ||||||
QNB Finansbank AS, 6.88%, 09/07/24(b) | 400 | 405,875 | ||||||
Tupras Turkiye Petrol Rafinerileri AS, 4.50%, 10/18/24 (Call 07/20/24)(b) | 400 | 365,500 | ||||||
Turk Telekomunikasyon AS | 200 | 192,563 | ||||||
6.88%, 02/28/25(b) | 200 | 203,562 | ||||||
Turkcell Iletisim Hizmetleri AS | 400 | 397,250 | ||||||
5.80%, 04/11/28 (Call 01/11/28)(b) | 200 | 192,375 |
SCHEDULE OF INVESTMENTS | 35 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Turkey (continued) | ||||||||
Turkiye Garanti Bankasi AS | $ | 300 | $ | 295,406 | ||||
6.13%, 05/24/27 (Call 05/24/22)(b)(d) | 400 | 354,375 | ||||||
Turkiye Is Bankasi AS | 800 | 754,750 | ||||||
7.00%, 06/29/28 (Call 06/29/23)(b)(d) | 200 | 179,125 | ||||||
7.75%, 01/22/30 (Call 01/22/25)(b)(d) | 200 | 181,625 | ||||||
Turkiye Sise ve Cam Fabrikalari AS, 6.95%, 03/14/26 (Call 12/14/25)(b) | 300 | 302,156 | ||||||
Turkiye Vakiflar Bankasi TAO | 300 | 288,187 | ||||||
8.13%, 03/28/24(b) | 600 | 599,625 | ||||||
Yapi ve Kredi Bankasi AS | 600 | 579,375 | ||||||
5.85%, 06/21/24(b) | 300 | 282,656 | ||||||
6.10%, 03/16/23(b) | 200 | 195,000 | ||||||
8.25%, 10/15/24(b) | 200 | 202,500 | ||||||
8.50%, 03/09/26 (Call 03/09/21)(b)(d) | 200 | 197,250 | ||||||
13.88%, (Call 01/15/24)(b)(d)(e) | 200 | 208,000 | ||||||
|
| |||||||
8,137,031 | ||||||||
Ukraine — 0.3% | ||||||||
Metinvest BV | 200 | 190,625 | ||||||
8.50%, 04/23/26 (Call 01/23/26)(b) | 400 | 402,375 | ||||||
MHP SE, 7.75%, 05/10/24(b) | 400 | 416,375 | ||||||
|
| |||||||
1,009,375 | ||||||||
United Arab Emirates — 1.3% | ||||||||
ADIB Capital Invest 2 Ltd., 7.13%, (Call 09/20/23)(b)(d)(e) | 400 | 429,500 | ||||||
DIB Tier 1 Sukuk 3 Ltd., 6.25%, (Call 01/22/25)(b)(d)(e) | 400 | 418,000 | ||||||
DP World Salaam, 6.00%, | 600 | 627,000 | ||||||
Emaar Sukuk Ltd. | 200 | 193,687 | ||||||
3.88%, 09/17/29(b) | 200 | 187,688 | ||||||
EMG SUKUK Ltd., 4.56%, 06/18/24(b) | 400 | 414,625 | ||||||
Emirates NBD Bank PJSC | 600 | 617,812 | ||||||
6.13%, (Call 04/26/26)(b)(d)(e) | 400 | 415,875 | ||||||
GEMS MENASA Cayman Ltd./GEMS Education Delaware LLC, 7.13%, 07/31/26 (Call 07/31/22)(b) | 400 | 396,125 | ||||||
Shelf Drilling Holdings Ltd., 8.25%, 02/15/25 (Call 02/15/21)(b) | 500 | 160,000 | ||||||
|
| |||||||
3,860,312 | ||||||||
Vietnam — 0.1% | ||||||||
Mong Duong Finance Holdings BV, 5.13%, 05/07/29 (Call 05/07/23)(b) | 250 | 254,766 | ||||||
|
| |||||||
Zambia — 0.9% | ||||||||
First Quantum Minerals Ltd. | 1,000 | 994,062 | ||||||
6.88%, 10/15/27 (Call 10/15/23)(f) | 600 | 599,250 | ||||||
7.25%, 04/01/23 (Call 11/30/20)(b) | 1,200 | 1,206,375 | ||||||
|
| |||||||
2,799,687 | ||||||||
|
| |||||||
Total Corporate Bonds & Notes — 51.8% | 157,164,425 | |||||||
|
| |||||||
Foreign Government Obligations(a) | ||||||||
Angola — 0.9% | ||||||||
Angolan Government International Bond 8.00%, 11/26/29(b) | 1,200 | 922,500 |
Security | Par (000) | Value | ||||||
Angola (continued) | ||||||||
9.13%, 11/26/49(b) | $ | 1,200 | $ | 910,500 | ||||
9.50%, 11/12/25(b) | 1,200 | 1,024,500 | ||||||
|
| |||||||
2,857,500 | ||||||||
Argentina — 3.3% | ||||||||
Argentine Republic Government International Bond | 7,133 | 2,585,647 | ||||||
0.13%, 07/09/35 (Call 11/30/20)(h) | 9,096 | 2,978,726 | ||||||
0.13%, 01/09/38 (Call 11/30/20)(h) | 5,106 | 1,892,508 | ||||||
0.13%, 07/09/41 (Call 11/30/20)(c)(h) | 4,950 | 1,677,122 | ||||||
0.13%, 07/09/46 (Call 11/30/20)(h) | 900 | 293,400 | ||||||
1.00%, 07/09/29 (Call 11/30/20)(c) | 1,199 | 491,638 | ||||||
|
| |||||||
9,919,041 | ||||||||
Azerbaijan — 0.5% | ||||||||
Republic of Azerbaijan International Bond | 150 | 145,031 | ||||||
4.75%, 03/18/24(b) | 800 | 844,000 | ||||||
State Oil Co. of the Azerbaijan Republic, 4.75%, 03/13/23(b) | 400 | 415,625 | ||||||
|
| |||||||
1,404,656 | ||||||||
Bahrain — 2.2% | ||||||||
Bahrain Government International Bond | 400 | 391,125 | ||||||
5.63%, 09/30/31(b) | 400 | 395,500 | ||||||
6.00%, 09/19/44(b) | 800 | 745,750 | ||||||
6.13%, 08/01/23(b) | 1,000 | 1,064,687 | ||||||
6.75%, 09/20/29(b) | 600 | 649,312 | ||||||
7.00%, 01/26/26(b) | 600 | 677,437 | ||||||
7.00%, 10/12/28(b) | 900 | 991,969 | ||||||
7.38%, 05/14/30(b) | 200 | 221,438 | ||||||
CBB International Sukuk Co. 5 SPC, 5.62%, 02/12/24(b) | 600 | 632,062 | ||||||
CBB International Sukuk Co. 7 SPC, 6.88%, 10/05/25(b) | 200 | 225,563 | ||||||
CBB International Sukuk Programme Co. SPC | 500 | 496,250 | ||||||
4.50%, 03/30/27(b) | 200 | 204,688 | ||||||
|
| |||||||
6,695,781 | ||||||||
Bolivia — 0.1% | ||||||||
Bolivian Government International Bond, 4.50%, 03/20/28(b)(c) | 400 | 346,875 | ||||||
|
| |||||||
Brazil — 5.5% | ||||||||
Banco Nacional de Desenvolvimento Economico e Social, 5.75%, 09/26/23(b) | 600 | 661,875 | ||||||
Brazil Minas SPE via State of Minas Gerais, 5.33%, 02/15/28(b) | 480 | 505,350 | ||||||
Brazilian Government International Bond | 1,100 | 1,137,469 | ||||||
2.88%, 06/06/25 | 200 | 202,263 | ||||||
3.88%, 06/12/30(c) | 1,000 | 1,012,500 | ||||||
4.25%, 01/07/25(c) | 1,948 | 2,109,319 | ||||||
4.50%, 05/30/29 (Call 02/28/29) | 800 | 858,250 | ||||||
4.63%, 01/13/28 (Call 10/13/27) | 1,400 | 1,515,500 | ||||||
4.75%, 01/14/50 (Call 07/14/49) | 1,150 | 1,128,437 | ||||||
5.00%, 01/27/45(c) | 1,526 | 1,569,396 | ||||||
5.63%, 01/07/41 | 917 | 1,004,688 | ||||||
5.63%, 02/21/47 | 1,300 | 1,425,125 | ||||||
6.00%, 04/07/26 | 1,014 | 1,176,874 | ||||||
7.13%, 01/20/37 | 760 | 952,850 | ||||||
8.25%, 01/20/34 | 650 | 879,937 | ||||||
8.88%, 04/15/24 | 520 | 642,525 | ||||||
|
| |||||||
16,782,358 |
36 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Costa Rica — 0.6% | ||||||||
Costa Rica Government International Bond | $ | 400 | $ | 364,500 | ||||
6.13%, 02/19/31(b)(c) | 600 | 495,562 | ||||||
7.00%, 04/04/44(b) | 462 | 359,494 | ||||||
7.16%, 03/12/45(b) | 600 | 473,625 | ||||||
|
| |||||||
1,693,181 | ||||||||
Dominican Republic — 2.8% | ||||||||
Dominican Republic International Bond | 300 | 302,719 | ||||||
4.88%, 09/23/32(b) | 402 | 409,663 | ||||||
5.50%, 01/27/25(b) | 700 | 747,906 | ||||||
5.88%, 04/18/24(b) | 540 | 571,050 | ||||||
5.88%, 01/30/60(b) | 1,550 | 1,487,516 | ||||||
5.95%, 01/25/27(b)(c) | 700 | 763,656 | ||||||
6.00%, 07/19/28(b)(c) | 750 | 827,110 | ||||||
6.40%, 06/05/49(b) | 600 | 610,500 | ||||||
6.50%, 02/15/48(b) | 450 | 463,078 | ||||||
6.85%, 01/27/45(b) | 890 | 955,081 | ||||||
6.88%, 01/29/26(b) | 700 | 789,906 | ||||||
7.45%, 04/30/44(b) | 600 | 685,500 | ||||||
|
| |||||||
8,613,685 | ||||||||
Ecuador — 1.4% | ||||||||
Ecuador Government International Bond | 441 | 198,757 | ||||||
0.50%, 07/31/30(f)(h) | 1,652 | 1,090,386 | ||||||
0.50%, 07/31/35(f)(h) | 3,900 | 2,145,000 | ||||||
0.50%, 07/31/40(f)(h) | 1,500 | 742,969 | ||||||
|
| |||||||
4,177,112 | ||||||||
Egypt — 2.9% | ||||||||
Egypt Government International Bond | 600 | 616,688 | ||||||
5.75%, 05/29/24(b) | 600 | 613,875 | ||||||
5.88%, 06/11/25(b) | 800 | 820,750 | ||||||
6.59%, 02/21/28(b) | 414 | 416,717 | ||||||
7.05%, 01/15/32(b) | 400 | 391,000 | ||||||
7.50%, 01/31/27(b) | 1,000 | 1,057,812 | ||||||
7.60%, 03/01/29(b) | 600 | 624,000 | ||||||
7.63%, 05/29/32(b) | 800 | 809,750 | ||||||
7.90%, 02/21/48(b) | 800 | 758,750 | ||||||
8.50%, 01/31/47(b) | 1,100 | 1,091,750 | ||||||
8.70%, 03/01/49(b) | 800 | 803,750 | ||||||
8.88%, 05/29/50(b) | 800 | 807,750 | ||||||
|
| |||||||
8,812,592 | ||||||||
El Salvador — 0.4% | ||||||||
El Salvador Government International Bond | 550 | 414,734 | ||||||
7.65%, 06/15/35(b) | 400 | 317,250 | ||||||
9.50%, 07/15/52 (Call 01/15/52)(b) | 400 | 347,375 | ||||||
|
| |||||||
1,079,359 | ||||||||
Ethiopia — 0.1% | ||||||||
Ethiopia International Bond, 6.63%, 12/11/24(b) | 400 | 402,000 | ||||||
|
| |||||||
Gabon — 0.2% | ||||||||
CBB International Sukuk Programme Co. SPC, 6.25%, 11/14/24(b) | 200 | 215,625 | ||||||
Gabon Government International Bond, 6.63%, 02/06/31(b) | 400 | 356,875 | ||||||
|
| |||||||
572,500 |
Security | Par (000) | Value | ||||||
Ghana — 1.2% | ||||||||
Ghana Government International Bond | $ | 400 | $ | 370,750 | ||||
7.63%, 05/16/29(b) | 800 | 740,000 | ||||||
8.13%, 01/18/26(b) | 470 | 471,909 | ||||||
8.13%, 03/26/32(b) | 900 | 826,031 | ||||||
8.63%, 06/16/49(b) | 400 | 350,000 | ||||||
8.95%, 03/26/51(b) | 500 | 447,969 | ||||||
10.75%, 10/14/30(b) | 400 | 489,250 | ||||||
|
| |||||||
3,695,909 | ||||||||
Guatemala — 0.3% | ||||||||
Guatemala Government Bond, 6.13%, 06/01/50(Call 12/01/49)(b)(c) | 700 | 863,844 | ||||||
|
| |||||||
Iraq — 0.5% | ||||||||
Iraq International Bond, 5.80%, 01/15/28(Call 12/14/20)(b) | 1,641 | 1,414,526 | ||||||
|
| |||||||
Ivory Coast — 0.5% | ||||||||
Ivory Coast Government International Bond | 332 | 323,493 | ||||||
6.13%, 06/15/33(b) | 600 | 604,500 | ||||||
6.38%, 03/03/28(b) | 500 | 523,906 | ||||||
|
| |||||||
1,451,899 | ||||||||
Jamaica — 0.8% | ||||||||
Jamaica Government International Bond | 600 | 690,188 | ||||||
7.88%, 07/28/45 | 900 | 1,166,906 | ||||||
8.00%, 03/15/39 | 500 | 663,281 | ||||||
|
| |||||||
2,520,375 | ||||||||
Jordan — 0.6% | ||||||||
Jordan Government International Bond | 600 | 617,625 | ||||||
5.85%, 07/07/30(b) | 500 | 502,500 | ||||||
6.13%, 01/29/26(b) | 400 | 420,375 | ||||||
7.38%, 10/10/47(b) | 400 | 412,375 | ||||||
|
| |||||||
1,952,875 | ||||||||
Kenya — 0.8% | ||||||||
Kenya Government International Bond | 1,200 | 1,266,750 | ||||||
8.00%, 05/22/32(b) | 600 | 629,437 | ||||||
8.25%, 02/28/48(b) | 600 | 611,250 | ||||||
|
| |||||||
2,507,437 | ||||||||
Lebanon — 0.2% |
| |||||||
Lebanon Government International Bond | 500 | 68,906 | ||||||
6.10%, 10/04/22(b)(i) | 700 | 96,010 | ||||||
6.60%, 11/27/26(b)(i) | 700 | 96,469 | ||||||
6.65%, 02/26/30(b)(i) | 640 | 86,600 | ||||||
6.75%, 11/29/27(b)(i) | 500 | 68,906 | ||||||
6.85%, 03/23/27(b)(i) | 650 | 89,578 | ||||||
7.00%, 03/23/32(b)(i) | 500 | 66,084 | ||||||
|
| |||||||
572,553 | ||||||||
Malaysia — 0.6% | ||||||||
1MDB Global Investments Ltd., | 2,000 | 1,990,000 | ||||||
|
| |||||||
Mongolia — 0.1% | ||||||||
Mongolia Government International Bond, 5.13%, 12/05/22(b) | 200 | 205,063 | ||||||
|
| |||||||
Nigeria — 1.3% | ||||||||
Nigeria Government International Bond 6.50%, 11/28/27(b) | 800 | 774,000 |
SCHEDULE OF INVESTMENTS | 37 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||
Nigeria (continued) | ||||||||
7.14%, 02/23/30(b) | $ | 514 | $ | 496,492 | ||||
7.63%, 11/21/25(b) | 500 | 524,844 | ||||||
7.63%, 11/28/47(b) | 600 | 546,375 | ||||||
7.70%, 02/23/38(b) | 600 | 552,375 | ||||||
7.88%, 02/16/32(b) | 600 | 581,438 | ||||||
8.75%, 01/21/31(b) | 600 | 621,937 | ||||||
|
| |||||||
4,097,461 | ||||||||
Oman — 2.6% | ||||||||
Oman Government International Bond | 2,500 | 2,282,031 | ||||||
5.38%, 03/08/27(b) | 200 | 182,875 | ||||||
5.63%, 01/17/28(b) | 2,000 | 1,830,625 | ||||||
6.50%, 03/08/47(b) | 800 | 647,000 | ||||||
6.75%, 01/17/48(b) | 1,400 | 1,143,625 | ||||||
Oman Sovereign Sukuk Co. | 200 | 199,688 | ||||||
5.93%, 10/31/25(b) | 1,400 | 1,473,500 | ||||||
|
| |||||||
7,759,344 | ||||||||
Pakistan — 0.5% | ||||||||
Pakistan Government International Bond | 800 | 777,250 | ||||||
8.25%, 04/15/24(b) | 677 | 707,465 | ||||||
|
| |||||||
1,484,715 | ||||||||
Paraguay — 0.4% | ||||||||
Paraguay Government International Bond | 400 | 466,525 | ||||||
6.10%, 08/11/44(b) | 600 | 774,375 | ||||||
|
| |||||||
1,240,900 | ||||||||
Senegal — 0.3% | ||||||||
Senegal Government International Bond | 500 | 508,438 | ||||||
6.75%, 03/13/48(b) | 400 | 390,000 | ||||||
|
| |||||||
898,438 | ||||||||
South Africa — 2.6% | ||||||||
Republic of South Africa Government International Bond | 800 | 776,000 | ||||||
4.67%, 01/17/24(c) | 600 | 623,625 | ||||||
4.85%, 09/27/27 | 600 | 609,000 | ||||||
4.85%, 09/30/29 | 900 | 891,562 | ||||||
4.88%, 04/14/26 | 500 | 518,594 | ||||||
5.00%, 10/12/46(c) | 400 | 336,625 | ||||||
5.38%, 07/24/44 | 500 | 442,969 | ||||||
5.65%, 09/27/47 | 600 | 540,938 | ||||||
5.75%, 09/30/49 | 1,300 | 1,171,625 | ||||||
5.88%, 09/16/25 | 986 | 1,075,664 | ||||||
5.88%, 06/22/30 | 800 | 845,000 | ||||||
|
| |||||||
7,831,602 | ||||||||
Sri Lanka — 0.8% | ||||||||
Sri Lanka Government International Bond | 400 | 230,000 | ||||||
6.20%, 05/11/27(b) | 800 | 430,000 | ||||||
6.75%, 04/18/28(b) | 500 | 267,969 | ||||||
6.83%, 07/18/26(b) | 400 | 217,125 | ||||||
6.85%, 03/14/24(b) | 500 | 284,062 | ||||||
6.85%, 11/03/25(b) | 700 | 388,937 | ||||||
7.55%, 03/28/30(b) | 600 | 324,375 | ||||||
7.85%, 03/14/29(b) | 700 | 378,219 | ||||||
|
| |||||||
2,520,687 |
Security | Par (000) | Value | ||||||
Trinidad And Tobago — 0.1% | ||||||||
Trinidad & Tobago Government International Bond, 4.50%, 08/04/26(b) | $ | 400 | $ | 418,000 | ||||
|
| |||||||
Tunisia — 0.1% | ||||||||
Banque Centrale de Tunisie International Bond, 5.75%, 01/30/25(b) | 400 | 336,625 | ||||||
|
| |||||||
Turkey — 8.1% | ||||||||
Hazine Mustesarligi Varlik Kiralama AS, 5.00%, 04/06/23(b) | 1,000 | 976,250 | ||||||
Turkey Government International Bond | 700 | 660,844 | ||||||
4.25%, 03/13/25(c) | 1,000 | 912,188 | �� | |||||
4.25%, 04/14/26 | 600 | 533,438 | ||||||
4.88%, 10/09/26 | 1,310 | 1,181,456 | ||||||
4.88%, 04/16/43 | 1,379 | 1,008,394 | ||||||
5.13%, 02/17/28 | 800 | 711,250 | ||||||
5.25%, 03/13/30 | 800 | 698,000 | ||||||
5.60%, 11/14/24 | 1,100 | 1,056,687 | ||||||
5.75%, 03/22/24 | 1,050 | 1,018,828 | ||||||
5.75%, 05/11/47 | 1,626 | 1,264,215 | ||||||
6.00%, 03/25/27 | 1,521 | 1,434,018 | ||||||
6.00%, 01/14/41 | 1,303 | 1,055,430 | ||||||
6.13%, 10/24/28 | 800 | 747,750 | ||||||
6.35%, 08/10/24 | 950 | 936,641 | ||||||
6.38%, 10/14/25 | 1,200 | 1,170,000 | ||||||
6.63%, 02/17/45 | 1,279 | 1,103,537 | ||||||
6.75%, 05/30/40 | 875 | 775,195 | ||||||
6.88%, 03/17/36 | 1,291 | 1,189,334 | ||||||
7.25%, 12/23/23 | 1,000 | 1,021,562 | ||||||
7.25%, 03/05/38 | 450 | 425,391 | ||||||
7.38%, 02/05/25 | 1,470 | 1,504,453 | ||||||
7.63%, 04/26/29 | 1,400 | 1,411,812 | ||||||
8.00%, 02/14/34(c) | 713 | 731,716 | ||||||
11.88%, 01/15/30(c) | 800 | 1,033,000 | ||||||
|
| |||||||
24,561,389 | ||||||||
Ukraine — 2.0% | ||||||||
Ukraine Government International Bond | 900 | 846,000 | ||||||
7.38%, 09/25/32(b) | 1,300 | 1,244,750 | ||||||
7.75%, 09/01/23(b) | 675 | 700,987 | ||||||
7.75%, 09/01/24(b) | 518 | 534,997 | ||||||
7.75%, 09/01/25(b) | 636 | 650,310 | ||||||
7.75%, 09/01/26(b) | 500 | 505,313 | ||||||
7.75%, 09/01/27(b) | 600 | 604,125 | ||||||
9.75%, 11/01/28(b) | 800 | 869,750 | ||||||
|
| |||||||
5,956,232 | ||||||||
Venezuela — 0.3% | ||||||||
Venezuela Government International Bond | 658 | 57,575 | ||||||
9.00%, 05/07/23(b)(i) | 1,037 | 90,738 | ||||||
9.25%, 09/15/27(i) | 1,962 | 171,675 | ||||||
9.38%, 01/13/34(i) | 730 | 63,875 | ||||||
11.75%, 10/21/26(b)(i) | 1,435 | 125,562 | ||||||
11.95%, 08/05/31(b)(i) | 2,030 | 177,625 | ||||||
12.75%, 08/23/22(b)(i) | 1,430 | 125,125 | ||||||
|
| |||||||
812,175 | ||||||||
Vietnam — 0.2% | ||||||||
Vietnam Government International Bond, 4.80%, 11/19/24(b) | 600 | 669,578 | ||||||
|
|
38 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM High Yield Bond ETF (Percentages shown are based on Net Assets) |
Security | Par/ Shares (000) | Value | ||||||
Zambia — 0.1% | ||||||||
Zambia Government International Bond | $ | 400 | $ | 172,500 | ||||
8.97%, 07/30/27(b) | 600 | 252,000 | ||||||
|
| |||||||
424,500 | ||||||||
|
| |||||||
Total Foreign Government Obligations — 45.9% |
| 139,542,767 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 7.1% | ||||||||
BlackRock Cash Funds: Institutional, | 17,248 | 17,259,777 | ||||||
BlackRock Cash Funds: Treasury, | 4,109 | 4,109,000 | ||||||
|
| |||||||
21,368,777 | ||||||||
|
| |||||||
Total Short-Term Investments — 7.1% |
| 21,368,777 | ||||||
|
| |||||||
Total Investments in Securities — 104.8% |
| 318,075,969 | ||||||
Other Assets, Less Liabilities — (4.8)% |
| (14,491,942 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 303,584,027 | ||||||
|
|
(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) | All or a portion of this security is on loan. |
(d) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(e) | Perpetual security with no stated maturity date. |
(f) | 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. |
(g) | Payment-in-kind (“PIK”) bond which gives the issuer an option to make coupon payments in cash or in the form of additional bonds. Stated interest rate represents the cash coupon rate. |
(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) | Issuer filed for bankruptcy and/or is in default. |
(j) | Affiliate of the Fund. |
(k) | Annualized 7-day yield as of period-end. |
(l) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 10/31/19 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 10/31/20 | Shares Held at 10/31/20 (000) | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | — | $ | 17,267,883 | (a) | $ | — | $ | (6,291 | ) | $ | (1,815 | ) | $ | 17,259,777 | 17,248 | $ | 23,294 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 3,849,000 | 260,000 | (a) | — | — | — | 4,109,000 | 4,109 | 35,632 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (6,291 | ) | $ | (1,815 | ) | $ | 21,368,777 | $ | 58,926 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 157,164,425 | $ | — | $ | 157,164,425 | ||||||||
Foreign Government Obligations | — | 139,542,767 | — | 139,542,767 | ||||||||||||
Money Market Funds | 21,368,777 | — | — | 21,368,777 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 21,368,777 | $ | 296,707,192 | $ | — | $ | 318,075,969 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 39 |
Schedule of Investments October 31, 2020 | iShares® J.P. Morgan EM Local Currency Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Foreign Government Obligations |
| |||||||||||
Brazil — 6.0% | ||||||||||||
Brazil Letras do Tesouro Nacional | BRL | 17,524 | $ | 2,919,337 | ||||||||
0.00%, 07/01/22(a) | BRL | 13,000 | 2,096,704 | |||||||||
0.00%, 07/01/23(a) | BRL | 26,000 | 3,873,114 | |||||||||
0.00%, 01/01/24(a) | BRL | 41,000 | 5,848,731 | |||||||||
Brazil Notas do Tesouro Nacional | ||||||||||||
Series F, 10.00%, 01/01/23 | BRL | 26,557 | 5,042,667 | |||||||||
Series F, 10.00%, 01/01/25 | BRL | 20,399 | 3,957,468 | |||||||||
Series F, 10.00%, 01/01/27 | BRL | 17,193 | 3,356,808 | |||||||||
Series F, 10.00%, 01/01/29 | BRL | 9,263 | 1,822,941 | |||||||||
Series F, 10.00%, 01/01/31 | BRL | 2,000 | 395,623 | |||||||||
Brazilian Government International Bond | BRL | 500 | 95,170 | |||||||||
10.25%, 01/10/28 | BRL | 1,420 | 291,447 | |||||||||
12.50%, 01/05/22 | BRL | 707 | 136,294 | |||||||||
|
| |||||||||||
29,836,304 | ||||||||||||
Chile — 4.5% | ||||||||||||
Bonos de la Tesoreria de la Republica en pesos | CLP | 3,410,000 | 4,627,518 | |||||||||
4.00%, 03/01/23(b)(c) | CLP | 1,460,000 | 2,035,398 | |||||||||
4.50%, 03/01/26 | CLP | 2,700,000 | 4,017,681 | |||||||||
4.70%, 09/01/30(b)(c) | CLP | 2,000,000 | 3,038,677 | |||||||||
5.00%, 03/01/35 | CLP | 2,950,000 | 4,568,062 | |||||||||
6.00%, 01/01/43 | CLP | 2,320,000 | 4,133,054 | |||||||||
|
| |||||||||||
22,420,390 | ||||||||||||
China — 11.9% | ||||||||||||
China Government Bond | CNY | 39,350 | 5,620,208 | |||||||||
2.36%, 07/02/23 | CNY | 32,980 | 4,849,586 | |||||||||
2.68%, 05/21/30 | CNY | 33,170 | 4,745,437 | |||||||||
2.85%, 06/04/27 | CNY | 35,380 | 5,153,559 | |||||||||
2.94%, 10/17/24 | CNY | 30,920 | 4,619,018 | |||||||||
3.12%, 12/05/26 | CNY | 34,190 | 5,093,158 | |||||||||
3.13%, 11/21/29 | CNY | 28,130 | 4,174,640 | |||||||||
3.19%, 04/11/24 | CNY | 29,820 | 4,488,432 | |||||||||
3.22%, 12/06/25 | CNY | 25,410 | 3,834,939 | |||||||||
3.25%, 06/06/26 | CNY | 29,590 | 4,459,154 | |||||||||
3.25%, 11/22/28 | CNY | 22,650 | 3,390,049 | |||||||||
3.29%, 10/18/23 | CNY | 22,730 | 3,434,246 | |||||||||
3.29%, 05/23/29 | CNY | 38,070 | 5,713,115 | |||||||||
|
| |||||||||||
59,575,541 | ||||||||||||
Colombia — 4.3% | ||||||||||||
Colombia Government International Bond, 9.85%, 06/28/27 | COP | 745,000 | 249,035 | |||||||||
Colombian TES | COP | 4,281,800 | 1,144,872 | |||||||||
6.00%, 04/28/28 | COP | 11,091,900 | 2,998,034 | |||||||||
6.25%, 11/26/25 | COP | 5,636,100 | 1,588,867 | |||||||||
7.00%, 05/04/22 | COP | 10,139,900 | 2,801,550 | |||||||||
7.00%, 06/30/32 | COP | 6,515,700 | 1,795,002 | |||||||||
7.25%, 10/18/34 | COP | 7,907,900 | 2,190,328 | |||||||||
7.25%, 10/26/50 | COP | 2,696,500 | 713,509 | |||||||||
7.50%, 08/26/26 | COP | 10,394,500 | 3,077,516 | |||||||||
7.75%, 09/18/30 | COP | 6,827,500 | 2,024,015 | |||||||||
10.00%, 07/24/24 | COP | 9,374,000 | 2,960,021 | |||||||||
|
| |||||||||||
21,542,749 |
Security | Par (000) | Value | ||||||||||
Czech Republic — 4.4% | ||||||||||||
Czech Republic Government Bond | CZK | 57,830 | $ | 2,387,961 | ||||||||
0.45%, 10/25/23(c) | CZK | 45,540 | 1,949,091 | |||||||||
0.95%, 05/15/30(c) | CZK | 44,610 | 1,898,392 | |||||||||
1.00%, 06/26/26(c) | CZK | 53,700 | 2,334,768 | |||||||||
1.20%, 03/13/31 | CZK | 28,510 | 1,237,403 | |||||||||
2.00%, 10/13/33 | CZK | 51,320 | 2,433,099 | |||||||||
2.40%, 09/17/25(c) | CZK | 44,010 | 2,044,005 | |||||||||
2.50%, 08/25/28(c) | CZK | 48,990 | 2,353,841 | |||||||||
2.75%, 07/23/29 | CZK | 41,980 | 2,072,271 | |||||||||
4.70%, 09/12/22(c) | CZK | 34,170 | 1,588,352 | |||||||||
5.70%, 05/25/24(c) | CZK | 32,390 | 1,647,722 | |||||||||
|
| |||||||||||
21,946,905 | ||||||||||||
Dominican Republic — 4.4% | ||||||||||||
Dominican Republic International Bond | DOP | 474,150 | 8,128,170 | |||||||||
9.75%, 06/05/26(c) | DOP | 789,150 | 13,797,980 | |||||||||
|
| |||||||||||
21,926,150 | ||||||||||||
Hungary — 4.3% | ||||||||||||
Hungary Government Bond | HUF | 617,950 | 1,910,669 | |||||||||
1.50%, 08/23/23 | HUF | 293,560 | 937,478 | |||||||||
1.75%, 10/26/22 | HUF | 331,050 | 1,066,398 | |||||||||
2.50%, 10/24/24 | HUF | 622,510 | 2,062,917 | |||||||||
2.75%, 12/22/26 | HUF | 557,540 | 1,873,210 | |||||||||
3.00%, 06/26/24 | HUF | 442,420 | 1,486,938 | |||||||||
3.00%, 10/27/27 | HUF | 607,770 | 2,080,197 | |||||||||
3.00%, 08/21/30 | HUF | 518,860 | 1,766,727 | |||||||||
3.00%, 10/27/38 | HUF | 240,870 | 816,703 | |||||||||
3.25%, 10/22/31 | HUF | 382,290 | 1,323,734 | |||||||||
5.50%, 06/24/25 | HUF | 512,500 | 1,922,931 | |||||||||
6.00%, 11/24/23 | HUF | 506,670 | 1,833,753 | |||||||||
6.75%, 10/22/28 | HUF | 346,800 | 1,493,368 | |||||||||
7.00%, 06/24/22 | HUF | 325,530 | 1,140,237 | |||||||||
|
| |||||||||||
21,715,260 | ||||||||||||
Indonesia — 7.5% | ||||||||||||
Indonesia Treasury Bond | IDR | 24,773,000 | 1,723,523 | |||||||||
6.13%, 05/15/28 | IDR | 23,496,000 | 1,566,400 | |||||||||
6.50%, 06/15/25 | IDR | 37,239,000 | 2,648,107 | |||||||||
6.63%, 05/15/33 | IDR | 16,767,000 | 1,105,189 | |||||||||
7.00%, 05/15/22 | IDR | 21,359,000 | 1,515,211 | |||||||||
7.00%, 05/15/27 | IDR | 29,816,000 | 2,113,113 | |||||||||
7.00%, 09/15/30 | IDR | 33,363,000 | 2,347,386 | |||||||||
7.50%, 08/15/32 | IDR | 14,739,000 | 1,037,525 | |||||||||
7.50%, 06/15/35 | IDR | 19,371,000 | 1,365,076 | |||||||||
7.50%, 05/15/38 | IDR | 15,632,000 | 1,076,871 | |||||||||
7.50%, 04/15/40 | IDR | 9,072,000 | 634,265 | |||||||||
8.13%, 05/15/24 | IDR | 16,521,000 | 1,229,049 | |||||||||
8.25%, 05/15/29 | IDR | 27,927,000 | 2,108,130 | |||||||||
8.25%, 06/15/32 | IDR | 8,396,000 | 618,577 | |||||||||
8.25%, 05/15/36 | IDR | 20,595,000 | 1,515,229 | |||||||||
8.38%, 03/15/24 | IDR | 34,597,000 | 2,583,243 | |||||||||
8.38%, 09/15/26 | IDR | 24,637,000 | 1,880,835 | |||||||||
8.38%, 03/15/34 | IDR | 32,781,000 | 2,451,010 | |||||||||
8.38%, 04/15/39 | IDR | 14,672,000 | 1,093,503 | |||||||||
8.75%, 05/15/31 | IDR | 16,167,000 | 1,249,143 | |||||||||
9.00%, 03/15/29 | IDR | 19,168,000 | 1,499,363 | |||||||||
9.50%, 07/15/31 | IDR | 5,720,000 | 459,947 |
40 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Local Currency Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Indonesia (continued) | ||||||||||||
10.50%, 08/15/30 | IDR | 6,985,000 | $ | 600,591 | ||||||||
11.00%, 09/15/25 | IDR | 8,194,000 | 682,133 | |||||||||
Perusahaan Penerbit SBSN Indonesia | IDR | 11,181,000 | 799,155 | |||||||||
8.25%, 09/15/23 | IDR | 8,832,000 | 649,309 | |||||||||
8.88%, 11/15/31 | IDR | 13,500,000 | 1,038,525 | |||||||||
|
| |||||||||||
37,590,408 | ||||||||||||
Malaysia — 4.5% | ||||||||||||
Malaysia Government Bond | MYR | 3,759 | 939,897 | |||||||||
3.48%, 06/14/24 | MYR | 1,666 | 422,314 | |||||||||
3.50%, 05/31/27 | MYR | 6,087 | 1,567,734 | |||||||||
3.73%, 06/15/28 | MYR | 2,777 | 722,989 | |||||||||
3.76%, 04/20/23 | MYR | 1,950 | 491,190 | |||||||||
3.80%, 08/17/23 | MYR | 2,620 | 663,832 | |||||||||
3.83%, 07/05/34 | MYR | 3,742 | 972,003 | |||||||||
3.89%, 08/15/29 | MYR | 6,179 | 1,628,773 | |||||||||
3.90%, 11/30/26 | MYR | 1,355 | 355,480 | |||||||||
3.90%, 11/16/27 | MYR | 3,857 | 1,015,305 | |||||||||
3.91%, 07/15/26 | MYR | 2,769 | 725,905 | |||||||||
3.96%, 09/15/25 | MYR | 5,406 | 1,414,342 | |||||||||
4.06%, 09/30/24 | MYR | 3,201 | 830,681 | |||||||||
4.18%, 07/15/24 | MYR | 3,282 | 852,096 | |||||||||
4.76%, 04/07/37 | MYR | 3,424 | 960,270 | |||||||||
Malaysia Government Investment Issue | MYR | 2,574 | 640,596 | |||||||||
3.42%, 09/30/27 | MYR | 2,327 | 597,291 | |||||||||
3.47%, 10/15/30 | MYR | 3,536 | 912,543 | |||||||||
3.66%, 10/15/24 | MYR | 2,142 | 547,873 | |||||||||
3.73%, 03/31/22 | MYR | 2,010 | 497,499 | |||||||||
3.73%, 03/31/26 | MYR | 2,700 | 700,481 | |||||||||
3.95%, 04/14/22 | MYR | 2,154 | 535,353 | |||||||||
4.09%, 11/30/23 | MYR | 2,600 | 666,774 | |||||||||
4.13%, 08/15/25 | MYR | 3,955 | 1,035,391 | |||||||||
4.13%, 07/09/29 | MYR | 3,126 | 831,531 | |||||||||
4.26%, 07/26/27 | MYR | 2,796 | 749,133 | |||||||||
4.37%, 10/31/28 | MYR | 3,793 | 1,023,033 | |||||||||
|
| |||||||||||
22,300,309 | ||||||||||||
Mexico — 6.9% | ||||||||||||
Mexican Bonos | MXN | 43,700 | 2,152,498 | |||||||||
7.25%, 12/09/21 | MXN | 43,480 | 2,106,055 | |||||||||
7.50%, 06/03/27 | MXN | 55,285 | 2,854,058 | |||||||||
8.50%, 05/31/29 | MXN | 69,800 | 3,824,812 | |||||||||
8.50%, 11/18/38 | MXN | 35,106 | 1,895,825 | |||||||||
10.00%, 12/05/24 | MXN | 56,923 | 3,160,143 | |||||||||
10.00%, 11/20/36 | MXN | 14,423 | 885,438 | |||||||||
Series M, 5.75%, 03/05/26 | MXN | 44,662 | 2,132,459 | |||||||||
Series M, 6.50%, 06/09/22 | MXN | 71,123 | 3,444,998 | |||||||||
Series M, 7.75%, 05/29/31 | MXN | 29,407 | 1,536,684 | |||||||||
Series M, 7.75%, 11/23/34 | MXN | 19,000 | 982,258 | |||||||||
Series M, 7.75%, 11/13/42 | MXN | 43,840 | 2,191,104 | |||||||||
Series M, 8.00%, 12/07/23 | MXN | 58,115 | 2,982,252 | |||||||||
Series M, 8.00%, 09/05/24 | MXN | 39,900 | 2,070,360 | |||||||||
Series M, 8.00%, 11/07/47 | MXN | 41,750 | 2,130,816 | |||||||||
|
| |||||||||||
34,349,760 | ||||||||||||
Peru — 4.4% | ||||||||||||
Peru Government Bond | PEN | 5,955 | 1,602,974 |
Security | Par (000) | Value | ||||||||||
Peru (continued) | ||||||||||||
5.40%, 08/12/34 | PEN | 6,870 | $ | 1,999,463 | ||||||||
5.70%, 08/12/24 | PEN | 5,037 | 1,635,788 | |||||||||
5.94%, 02/12/29 | PEN | 9,762 | 3,219,606 | |||||||||
6.15%, 08/12/32 | PEN | 8,205 | 2,613,430 | |||||||||
6.35%, 08/12/28 | PEN | 8,181 | 2,761,085 | |||||||||
6.90%, 08/12/37 | PEN | 8,542 | 2,786,433 | |||||||||
6.95%, 08/12/31 | PEN | 8,398 | 2,859,879 | |||||||||
8.20%, 08/12/26 | PEN | 7,419 | 2,758,443 | |||||||||
|
| |||||||||||
22,237,101 | ||||||||||||
Philippines — 4.4% | ||||||||||||
Philippine Government International Bond | PHP | 322,000 | 6,782,255 | |||||||||
6.25%, 01/14/36 | PHP | 576,000 | 15,286,183 | |||||||||
|
| |||||||||||
22,068,438 | ||||||||||||
Poland — 4.3% | ||||||||||||
Republic of Poland Government Bond | PLN | 7,776 | 2,026,719 | |||||||||
2.25%, 10/25/24 | PLN | 5,744 | 1,566,083 | |||||||||
2.50%, 01/25/23 | PLN | 8,033 | 2,137,438 | |||||||||
2.50%, 04/25/24 | PLN | 7,616 | 2,079,475 | |||||||||
2.50%, 07/25/26 | PLN | 9,472 | 2,642,181 | |||||||||
2.50%, 07/25/27 | PLN | 7,355 | 2,060,075 | |||||||||
2.75%, 04/25/28 | PLN | 6,973 | 1,988,230 | |||||||||
2.75%, 10/25/29 | PLN | 7,426 | 2,136,073 | |||||||||
3.25%, 07/25/25 | PLN | 6,602 | 1,888,492 | |||||||||
4.00%, 10/25/23 | PLN | 6,250 | 1,761,864 | |||||||||
5.75%, 09/23/22 | PLN | 5,053 | 1,414,017 | |||||||||
|
| |||||||||||
21,700,647 | ||||||||||||
Romania — 4.4% | ||||||||||||
Romania Government Bond | RON | 7,190 | 1,738,342 | |||||||||
3.40%, 03/08/22 | RON | 6,365 | 1,537,798 | |||||||||
3.50%, 12/19/22 | RON | 6,225 | 1,510,936 | |||||||||
3.65%, 07/28/25 | RON | 4,965 | 1,217,058 | |||||||||
3.65%, 09/24/31 | RON | 5,415 | 1,311,035 | |||||||||
4.25%, 06/28/23 | RON | 6,280 | 1,555,073 | |||||||||
4.40%, 09/25/23 | RON | 6,295 | 1,570,908 | |||||||||
4.50%, 06/17/24 | RON | 6,950 | 1,753,021 | |||||||||
4.75%, 02/24/25 | RON | 8,000 | 2,036,068 | |||||||||
4.85%, 04/22/26 | RON | 7,680 | 1,988,468 | |||||||||
5.00%, 02/12/29 | RON | 6,635 | 1,785,928 | |||||||||
5.80%, 07/26/27 | RON | 8,060 | 2,227,498 | |||||||||
5.85%, 04/26/23 | RON | 7,260 | 1,860,320 | |||||||||
|
| |||||||||||
22,092,453 | ||||||||||||
Russia — 4.3% | ||||||||||||
Russian Federal Bond - OFZ | RUB | 98,797 | 1,258,810 | |||||||||
6.50%, 02/28/24 | RUB | 76,344 | 1,002,233 | |||||||||
6.90%, 05/23/29 | RUB | 82,175 | 1,096,097 | |||||||||
7.00%, 12/15/21 | RUB | 61,167 | 791,302 | |||||||||
7.00%, 01/25/23 | RUB | 45,284 | 597,045 | |||||||||
7.00%, 08/16/23 | RUB | 56,605 | 751,434 | |||||||||
7.05%, 01/19/28 | RUB | 80,770 | 1,091,329 | |||||||||
7.10%, 10/16/24 | RUB | 81,631 | 1,098,156 | |||||||||
7.15%, 11/12/25 | RUB | 99,818 | 1,350,367 | |||||||||
7.25%, 05/10/34 | RUB | 85,094 | 1,150,994 | |||||||||
7.40%, 12/07/22 | RUB | 76,477 | 1,014,754 | |||||||||
7.40%, 07/17/24 | RUB | 88,961 | 1,203,669 | |||||||||
7.60%, 07/20/22 | RUB | 88,509 | 1,168,725 |
SCHEDULE OF INVESTMENTS | 41 |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Local Currency Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par | Value | ||||||||||
Russia (continued) | ||||||||||||
7.65%, 04/10/30 | RUB | 92,824 | $ | 1,296,529 | ||||||||
7.70%, 03/23/33 | RUB | 100,764 | 1,412,185 | |||||||||
7.70%, 03/16/39 | RUB | 69,018 | 984,160 | |||||||||
7.75%, 09/16/26 | RUB | 82,744 | 1,155,746 | |||||||||
7.95%, 10/07/26 | RUB | 80,104 | 1,127,921 | |||||||||
8.15%, 02/03/27 | RUB | 74,310 | 1,058,257 | |||||||||
8.50%, 09/17/31 | RUB | 58,340 | 862,181 | |||||||||
|
| |||||||||||
21,471,894 | ||||||||||||
South Africa — 4.5% | ||||||||||||
Republic of South Africa Government Bond | ZAR | 19,688 | 794,552 | |||||||||
6.50%, 02/28/41 | ZAR | 18,316 | 690,342 | |||||||||
7.00%, 02/28/31 | ZAR | 22,759 | 1,147,233 | |||||||||
7.75%, 02/28/23 | ZAR | 25,720 | 1,704,522 | |||||||||
8.00%, 01/31/30 | ZAR | 51,124 | 2,893,500 | |||||||||
8.25%, 03/31/32 | ZAR | 28,797 | 1,521,556 | |||||||||
8.50%, 01/31/37 | ZAR | 35,841 | 1,727,859 | |||||||||
8.75%, 01/31/44 | ZAR | 34,006 | 1,594,549 | |||||||||
8.75%, 02/28/48 | ZAR | 58,214 | 2,717,160 | |||||||||
8.88%, 02/28/35 | ZAR | 32,635 | 1,680,161 | |||||||||
9.00%, 01/31/40 | ZAR | 25,584 | 1,258,213 | |||||||||
10.50%, 12/21/26 | ZAR | 63,765 | 4,581,419 | |||||||||
|
| |||||||||||
22,311,066 | ||||||||||||
Thailand — 4.6% | ||||||||||||
Thailand Government Bond | THB | 46,586 | 1,531,767 | |||||||||
1.60%, 12/17/29 | THB | 33,086 | 1,082,264 | |||||||||
1.60%, 06/17/35 | THB | 20,877 | 668,027 | |||||||||
1.88%, 06/17/22 | THB | 29,895 | 979,016 | |||||||||
2.00%, 12/17/22 | THB | 20,290 | 669,834 | |||||||||
2.13%, 12/17/26 | THB | 52,312 | 1,786,511 | |||||||||
2.40%, 12/17/23 | THB | 43,848 | 1,481,004 | |||||||||
2.88%, 12/17/28 | THB | 41,607 | 1,497,193 | |||||||||
2.88%, 06/17/46 | THB | 33,526 | 1,243,486 | |||||||||
3.30%, 06/17/38 | THB | 51,779 | 2,012,190 | |||||||||
3.40%, 06/17/36 | THB | 24,572 | 966,579 | |||||||||
3.63%, 06/16/23 | THB | 41,163 | 1,423,321 | |||||||||
3.65%, 12/17/21 | THB | 39,604 | 1,314,067 | |||||||||
3.65%, 06/20/31 | THB | 43,407 | 1,688,704 | |||||||||
3.78%, 06/25/32 | THB | 48,754 | 1,936,273 | |||||||||
3.85%, 12/12/25 | THB | 39,622 | 1,455,807 | |||||||||
4.26%, 12/12/37(c) | THB | 470 | 19,870 | |||||||||
4.88%, 06/22/29 | THB | 33,473 | 1,383,275 | |||||||||
|
| |||||||||||
23,139,188 | ||||||||||||
Turkey — 4.3% | ||||||||||||
Turkey Government Bond | TRY | 14,917 | 1,515,189 |
Security | Par/ Shares (000) | Value | ||||||||||
Turkey (continued) | ||||||||||||
8.00%, 03/12/25 | TRY | 11,797 | $ | 1,124,399 | ||||||||
8.50%, 09/14/22 | TRY | 14,462 | 1,559,543 | |||||||||
9.00%, 07/24/24 | TRY | 22,923 | 2,329,762 | |||||||||
9.50%, 01/12/22 | TRY | 9,129 | 1,026,876 | |||||||||
10.40%, 03/20/24 | TRY | 4,792 | 511,040 | |||||||||
10.50%, 08/11/27 | TRY | 17,375 | 1,761,750 | |||||||||
10.60%, 02/11/26 | TRY | 22,262 | 2,338,267 | |||||||||
10.70%, 08/17/22 | TRY | 13,459 | 1,506,772 | |||||||||
11.00%, 03/02/22 | TRY | 14,286 | 1,624,068 | |||||||||
11.00%, 02/24/27 | TRY | 14,173 | 1,477,657 | |||||||||
12.20%, 01/18/23 | TRY | 18,098 | 2,059,584 | |||||||||
12.40%, 03/08/28 | TRY | 10,598 | 1,166,880 | |||||||||
16.20%, 06/14/23 | TRY | 11,119 | 1,367,492 | |||||||||
|
| |||||||||||
21,369,279 | ||||||||||||
Uruguay — 4.3% | ||||||||||||
Uruguay Government International Bond 8.50%, 03/15/28(c) | UYU | 425,051 | 10,351,191 | |||||||||
9.88%, 06/20/22(c) | UYU | 473,767 | 11,378,547 | |||||||||
|
| |||||||||||
21,729,738 | ||||||||||||
|
| |||||||||||
Total Foreign Government Obligations — 98.2% |
| 491,323,580 | ||||||||||
|
| |||||||||||
Short-Term Investments | ||||||||||||
Money Market Funds — 0.1% | ||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.04%(d)(e) | 290 | 290,000 | ||||||||||
|
| |||||||||||
Total Short-Term Investments — 0.1% |
| 290,000 | ||||||||||
|
| |||||||||||
Total Investments in Securities — 98.3% |
| 491,613,580 | ||||||||||
Other Assets, Less Liabilities — 1.7% | 8,486,871 | |||||||||||
|
| |||||||||||
Net Assets — 100.0% | $ | 500,100,451 | ||||||||||
|
|
(a) | Zero-coupon bond. |
(b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period-end. |
42 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® J.P. Morgan EM Local Currency Bond ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2020, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 10/31/19 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 10/31/20 | Shares Held at 10/31/20 (000) | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | $ | 6,933,000 | $ | — | $ | (6,643,000 | )(a) | $ | — | $ | — | $ | 290,000 | 290 | $ | 21,977 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
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, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Foreign Government Obligations | $ | — | $ | 491,323,580 | $ | — | $ | 491,323,580 | ||||||||
Money Market Funds | 290,000 | — | — | 290,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 290,000 | $ | 491,323,580 | $ | — | $ | 491,613,580 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
SCHEDULE OF INVESTMENTS | 43 |
Schedule of Investments October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Corporate Bonds & Notes | ||||||||||||
Australia — 0.2% | ||||||||||||
FMG Resources August 2006 Pty Ltd. | USD | 100 | $ | 106,734 | ||||||||
4.75%, 05/15/22 (Call 02/15/22)(a)(b) | USD | 50 | 51,185 | |||||||||
5.13%, 03/15/23 (Call 12/15/22)(a) | USD | 65 | 67,722 | |||||||||
5.13%, 05/15/24 (Call 02/15/24)(a) | USD | 125 | 133,345 | |||||||||
|
| |||||||||||
358,986 | ||||||||||||
Austria — 0.2% | ||||||||||||
ams AG, 6.00%, 07/31/25 (Call 07/31/22)(c) | EUR | 100 | 120,912 | |||||||||
Novomatic AG, 1.63%, 09/20/23 | EUR | 100 | 106,619 | |||||||||
Wienerberger AG, 2.00%, 05/02/24(c) | EUR | 50 | 60,248 | |||||||||
|
| |||||||||||
287,779 | ||||||||||||
Belgium — 0.2% | ||||||||||||
Telenet Finance Luxembourg Note Sarl, 5.50%, 03/01/28 (Call 12/01/22)(a) | USD | 200 | 209,833 | |||||||||
Telenet Finance Luxembourg Notes Sarl, 3.50%, 03/01/28 (Call 12/01/22)(c) | EUR | 100 | 119,799 | |||||||||
|
| |||||||||||
329,632 | ||||||||||||
Brazil — 0.4% | ||||||||||||
JBS Investments II GmbH, 7.00%, 01/15/26 (Call 01/15/22)(a) | USD | 200 | 213,198 | |||||||||
JBS USA LUX SA/JBS USA Finance Inc., 6.75%, 02/15/28 (Call 02/15/23)(a) | USD | 125 | 137,247 | |||||||||
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc. | USD | 160 | 174,010 | |||||||||
6.50%, 04/15/29 (Call 04/15/24)(a) | USD | 155 | 173,923 | |||||||||
|
| |||||||||||
698,378 | ||||||||||||
Canada — 3.0% | ||||||||||||
1011778 BC ULC/New Red Finance Inc. | USD | 60 | 59,550 | |||||||||
3.88%, 01/15/28 (Call 09/15/22)(a)(b) | USD | 70 | 70,798 | |||||||||
4.00%, 10/15/30 (Call 10/15/25)(a) | USD | 302 | 299,357 | |||||||||
4.25%, 05/15/24 (Call 11/30/20)(a) | USD | 190 | 193,800 | |||||||||
4.38%, 01/15/28 (Call 11/15/22)(a) | USD | 95 | 96,188 | |||||||||
5.00%, 10/15/25 (Call 11/13/20)(a) | USD | 170 | 174,318 | |||||||||
5.75%, 04/15/25 (Call 04/15/22)(a) | USD | 15 | 15,988 | |||||||||
Bombardier Inc. | USD | 65 | 61,945 | |||||||||
6.00%, 10/15/22 (Call 11/30/20)(a)(b) | USD | 175 | 156,187 | |||||||||
6.13%, 01/15/23(a) | USD | 155 | 132,186 | |||||||||
7.50%, 12/01/24 (Call 12/01/20)(a) | USD | 125 | 93,063 | |||||||||
7.50%, 03/15/25 (Call 11/30/20)(a) | USD | 160 | 116,000 | |||||||||
7.88%, 04/15/27 (Call 04/15/22)(a)(b) | USD | 220 | 160,600 | |||||||||
8.75%, 12/01/21(a) | USD | 130 | 129,324 | |||||||||
Brookfield Residential Properties Inc./Brookfield Residential U.S. Corp. | USD | 50 | 47,500 | |||||||||
6.13%, 05/15/23 (Call 11/30/20)(a) | CAD | 35 | 26,430 | |||||||||
6.25%, 09/15/27 (Call 09/15/22)(a) | USD | 82 | 83,948 | |||||||||
Cenovus Energy Inc. | USD | 25 | 24,748 | |||||||||
3.80%, 09/15/23 (Call 06/15/23) | USD | 50 | 50,510 | |||||||||
4.25%, 04/15/27 (Call 01/15/27) | USD | 150 | 152,709 | |||||||||
5.38%, 07/15/25 (Call 04/15/25)(b) | USD | 70 | 73,763 | |||||||||
CES Energy Solutions Corp., 6.38%, 10/21/24 (Call 11/30/20) | CAD | 40 | 27,525 | |||||||||
Crew Energy Inc., 6.50%, 03/14/24 (Call 11/30/20)(a) | CAD | 40 | 19,687 |
Security | Par (000) | Value | ||||||||||
Canada (continued) | ||||||||||||
Garda World Security Corp. | USD | 100 | $ | 97,926 | ||||||||
9.50%, 11/01/27 (Call 11/01/22)(a)(b) | USD | 75 | 80,143 | |||||||||
GFL Environmental Inc. | USD | 85 | 85,252 | |||||||||
4.25%, 06/01/25 (Call 06/01/22)(a) | USD | 15 | 15,344 | |||||||||
5.13%, 12/15/26 (Call 12/15/22)(a) | USD | 80 | 83,974 | |||||||||
7.00%, 06/01/26 (Call 06/01/21)(a)(b) | USD | 57 | 59,280 | |||||||||
Mattamy Group Corp. | USD | 70 | 71,179 | |||||||||
5.25%, 12/15/27 (Call 12/15/22)(a) | USD | 65 | 68,738 | |||||||||
MEG Energy Corp. | USD | 58 | 56,666 | |||||||||
7.00%, 03/31/24 (Call 11/30/20)(a) | USD | 75 | 70,906 | |||||||||
7.13%, 02/01/27 (Call 02/01/23)(a) | USD | 150 | 134,959 | |||||||||
Methanex Corp. | USD | 50 | 50,790 | |||||||||
5.25%, 12/15/29 (Call 09/15/29) | USD | 100 | 101,323 | |||||||||
NOVA Chemicals Corp. | USD | 155 | 153,326 | |||||||||
5.00%, 05/01/25 (Call 01/31/25)(a) | USD | 65 | 64,188 | |||||||||
5.25%, 08/01/23 (Call 11/30/20)(a) | USD | 65 | 64,534 | |||||||||
5.25%, 06/01/27 (Call 03/03/27)(a) | USD | 130 | 126,364 | |||||||||
NuVista Energy Ltd., 6.50%, 03/02/23 (Call 11/30/20) | CAD | 30 | 15,244 | |||||||||
Open Text Corp. | USD | 115 | 116,518 | |||||||||
5.88%, 06/01/26 (Call 06/01/21)(a) | USD | 100 | 104,097 | |||||||||
Open Text Holdings Inc., 4.13%, 02/15/30 (Call 02/15/25)(a) | USD | 90 | 93,825 | |||||||||
Parkland Corp. | CAD | 100 | 77,704 | |||||||||
5.75%, 09/16/24 (Call 11/30/20)(a) | CAD | 25 | 19,289 | |||||||||
5.75%, 09/16/24 (Call 11/30/20) | CAD | 25 | 19,289 | |||||||||
5.88%, 07/15/27 (Call 07/15/22)(a) | USD | 65 | 67,239 | |||||||||
6.00%, 04/01/26 (Call 04/01/21)(a) | USD | 65 | 67,356 | |||||||||
Quebecor Media Inc. | USD | 130 | 139,620 | |||||||||
6.63%, 01/15/23(a) | CAD | 75 | 60,890 | |||||||||
Russel Metals Inc., 6.00%, 04/19/22 (Call 11/30/20)(a) | CAD | 25 | 18,751 | |||||||||
Seven Generations Energy Ltd., 5.38%, 09/30/25 (Call 11/30/20)(a) | USD | 90 | 86,037 | |||||||||
Stars Group Holdings BV/Stars Group US Co-Borrower LLC, 7.00%, 07/15/26 (Call 07/15/21)(a) | USD | 175 | 184,306 | |||||||||
Superior Plus LP | CAD | 50 | 38,554 | |||||||||
5.25%, 02/27/24 (Call 11/30/20) | CAD | 50 | 38,460 | |||||||||
Titan Acquisition Ltd./Titan Co-Borrower LLC, 7.75%, 04/15/26 (Call 04/15/21)(a) | USD | 80 | 80,100 | |||||||||
Videotron Ltd. | CAD | 110 | 87,586 | |||||||||
5.00%, 07/15/22 | USD | 100 | 104,501 | |||||||||
5.13%, 04/15/27 (Call 04/15/22)(a) | USD | 75 | 79,406 | |||||||||
5.38%, 06/15/24 (Call 03/15/24)(a) | USD | 75 | 81,458 | |||||||||
5.63%, 06/15/25 (Call 03/15/25) | CAD | 50 | 41,378 | |||||||||
5.75%, 01/15/26 (Call 11/16/20)(c) | CAD | 50 | 38,625 | |||||||||
|
| |||||||||||
5,311,249 | ||||||||||||
Cayman Islands — 0.1% | ||||||||||||
Transocean Sentry Ltd., 5.38%, 05/15/23 | USD | 50 | 31,562 |
44 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Cayman Islands (continued) | �� | |||||||||||
UPCB Finance VII Ltd., 3.63%, 06/15/29 (Call 06/15/22)(c) | EUR | 150 | $ | 174,515 | ||||||||
|
| |||||||||||
206,077 | ||||||||||||
China — 0.0% | ||||||||||||
Moss Creek Resources Holdings Inc., 7.50%, 01/15/26 (Call 01/15/21)(a) | USD | 90 | 45,000 | |||||||||
|
| |||||||||||
Denmark — 0.1% | ||||||||||||
DKT Finance ApS, 7.00%, 06/17/23 (Call 11/30/20)(c) | EUR | 100 | 116,898 | |||||||||
TDC AS, 6.88%, 02/23/23(c) | GBP | 100 | 139,458 | |||||||||
|
| |||||||||||
256,356 | ||||||||||||
Finland — 0.5% | ||||||||||||
Nokia OYJ | EUR | 200 | 237,118 | |||||||||
2.38%, 05/15/25 (Call 02/15/25)(c) | EUR | 100 | 120,635 | |||||||||
3.38%, 06/12/22 | USD | 65 | 66,054 | |||||||||
4.38%, 06/12/27 | USD | 65 | 69,876 | |||||||||
Teollisuuden Voima OYJ | EUR | 200 | 214,710 | |||||||||
2.00%, 05/08/24 (Call 02/08/24)(c) | EUR | 100 | 116,696 | |||||||||
|
| |||||||||||
825,089 | ||||||||||||
France — 3.5% | ||||||||||||
Altice France SA/France | EUR | 100 | 108,287 | |||||||||
3.38%, 01/15/28 (Call 09/15/22)(c) | EUR | 100 | 109,969 | |||||||||
4.13%, 01/15/29 (Call 09/15/23)(c) | EUR | 100 | 113,699 | |||||||||
5.50%, 01/15/28 (Call 09/15/22)(a) | USD | 200 | 202,750 | |||||||||
5.88%, 02/01/27 (Call 02/01/22)(c) | EUR | 200 | 243,061 | |||||||||
7.38%, 05/01/26 (Call 05/01/21)(a) | USD | 200 | 208,740 | |||||||||
8.13%, 02/01/27 (Call 02/01/22)(a) | USD | 200 | 217,125 | |||||||||
Banijay Group SAS, 6.50%, 03/01/26 (Call 09/01/22)(c) | EUR | 100 | 112,816 | |||||||||
Burger King France SAS, 6.00%, 05/01/24 (Call 11/09/20)(c) | EUR | 100 | 109,690 | |||||||||
Casino Guichard Perrachon SA | EUR | 100 | 110,339 | |||||||||
3.58%, 02/07/25 (Call 11/07/24)(c) | EUR | 100 | 89,389 | |||||||||
4.50%, 03/07/24 (Call 12/07/23)(c) | EUR | 100 | 94,767 | |||||||||
4.56%, 01/25/23(c) | EUR | 100 | 109,692 | |||||||||
CMA CGM SA | EUR | 100 | 106,757 | |||||||||
6.50%, 07/15/22 (Call 11/09/20)(c) | EUR | 100 | 116,572 | |||||||||
7.50%, 01/15/26 (Call 01/15/23)(c) | EUR | 100 | 112,482 | |||||||||
Electricite de France SA, 5.63%, (Call 01/22/24)(a)(d)(e) | USD | 150 | 157,530 | |||||||||
Elis SA | EUR | 100 | 108,127 | |||||||||
1.63%, 04/03/28 (Call 01/03/28)(c) | EUR | 100 | 107,384 | |||||||||
1.88%, 02/15/23 (Call 11/15/22)(c) | EUR | 100 | 115,227 | |||||||||
Faurecia SE | EUR | 100 | 112,355 | |||||||||
2.63%, 06/15/25 (Call 06/15/21)(c) | EUR | 100 | 116,412 | |||||||||
3.13%, 06/15/26 (Call 06/15/22)(c) | EUR | 100 | 117,526 | |||||||||
3.75%, 06/15/28 (Call 06/15/23)(c) | EUR | 100 | 117,777 | |||||||||
Fnac Darty SA, 2.63%, 05/30/26 (Call 05/30/22)(c) | EUR | 100 | 115,408 | |||||||||
Getlink SE, 3.50%, 10/30/25 (Call 10/30/22)(c) | EUR | 100 | 116,599 | |||||||||
La Financiere Atalian SASU, 4.00%, 05/15/24 (Call 11/09/20)(c) | EUR | 100 | 100,776 | |||||||||
Loxam SAS | EUR | 125 | 133,037 | |||||||||
3.25%, 01/14/25 (Call 07/15/21)(c) | EUR | 125 | 135,534 | |||||||||
3.75%, 07/15/26 (Call 07/15/22)(c) | EUR | 100 | 109,086 | |||||||||
Mobilux Finance SAS, 5.50%, 11/15/24 (Call 11/09/20)(c) | EUR | 100 | 114,260 |
Security | Par (000) | Value | ||||||||||
France (continued) | ||||||||||||
Orano SA | EUR | 100 | $ | 118,820 | ||||||||
3.38%, 04/23/26 (Call 01/23/26)(c) | EUR | 100 | 119,478 | |||||||||
4.88%, 09/23/24 | EUR | 100 | 128,336 | |||||||||
Paprec Holding SA, 4.00%, 03/31/25 (Call 03/31/21)(c) | EUR | 100 | 109,193 | |||||||||
Quatrim SASU, 5.88%, 01/15/24 (Call 11/15/21)(c) | EUR | 100 | 112,515 | |||||||||
RCI Banque SA, 2.63%, 02/18/30 (Call 02/18/25)(c)(e) | EUR | 100 | 112,049 | |||||||||
Renault SA | EUR | 100 | 113,865 | |||||||||
1.00%, 11/28/25 (Call 08/28/25)(c) | EUR | 100 | 109,310 | |||||||||
1.13%, 10/04/27 (Call 07/04/27)(c) | EUR | 100 | 101,394 | |||||||||
1.25%, 06/24/25 (Call 03/24/25)(c) | EUR | 100 | 108,129 | |||||||||
2.00%, 09/28/26 (Call 06/28/26)(c) | EUR | 100 | 109,806 | |||||||||
Rexel SA, 2.75%, 06/15/26 (Call 03/15/22)(c) | EUR | 125 | 144,683 | |||||||||
SPCM SA, 2.63%, 02/01/29 (Call 09/15/23)(c) | EUR | 100 | 116,081 | |||||||||
SPIE SA | EUR | 100 | 114,516 | |||||||||
3.13%, 03/22/24 (Call 09/22/23)(c) | EUR | 100 | 117,979 | |||||||||
Tereos Finance Groupe I SA | EUR | 100 | 107,011 | |||||||||
7.50%, 10/30/25 (Call 10/30/22)(c) | EUR | 100 | 115,541 | |||||||||
Valeo SA, 3.25%, 01/22/24(c) | EUR | 100 | 122,873 | |||||||||
Vallourec SA | EUR | 100 | 67,852 | |||||||||
6.63%, 10/15/22 (Call 11/09/20)(c) | EUR | 100 | 68,689 | |||||||||
|
| |||||||||||
6,161,293 | ||||||||||||
Germany — 4.1% | ||||||||||||
ADLER Group SA, 3.25%, 08/05/25 (Call 05/05/25)(c) | EUR | 100 | 114,741 | |||||||||
Adler Pelzer Holding GmbH, 4.13%, 04/01/24 (Call 11/09/20)(c) | EUR | 100 | 96,950 | |||||||||
ADLER Real Estate AG | EUR | 100 | 114,190 | |||||||||
1.50%, 04/17/22 (Call 03/17/22)(c) | EUR | 100 | 113,936 | |||||||||
3.00%, 04/27/26 (Call 02/27/26)(c) | EUR | 100 | 115,918 | |||||||||
Bertelsmann SE & Co. KGaA, 3.50%, 04/23/75 (Call 04/23/27)(c)(e) | EUR | 100 | 117,397 | |||||||||
CBR Fashion Finance BV, 5.13%, 10/01/22 (Call 11/09/20)(c) | EUR | 100 | 102,872 | |||||||||
CeramTec BondCo GmbH, 5.25%, 12/15/25 (Call 12/15/20)(c) | EUR | 100 | 111,826 | |||||||||
Cheplapharm Arzneimittel GmbH, 4.38%, 01/15/28 (Call 01/15/24)(c) | EUR | 100 | 115,380 | |||||||||
Commerzbank AG | EUR | 130 | 160,528 | |||||||||
4.00%, 12/05/30 (Call 09/05/25)(c)(e) | EUR | 200 | 237,694 | |||||||||
8.13%, 09/19/23(a) | USD | 200 | 229,534 | |||||||||
Consus Real Estate AG, 9.63%, 05/15/24 (Call 05/15/21)(c) | EUR | 100 | 123,110 | |||||||||
DEMIRE Deutsche Mittelstand Real Estate AG, 1.88%, 10/15/24 (Call 07/15/24)(c) | EUR | 100 | 106,830 | |||||||||
Deutsche Bank AG | EUR | 125 | 145,716 | |||||||||
4.30%, 05/24/28 (Call 05/24/23)(e) | USD | 200 | 193,587 | |||||||||
4.50%, 05/19/26(c) | EUR | 100 | 122,770 | |||||||||
5.63%, 05/19/31 (Call 02/19/26)(c)(e) | EUR | 200 | 250,305 | |||||||||
Deutsche Bank AG/New York NY, 4.88%, 12/01/32 (Call 12/01/27)(e) | USD | 200 | 192,917 | |||||||||
Douglas GmbH, 6.25%, 07/15/22 (Call 11/09/20)(c) | EUR | 100 | 97,032 | |||||||||
HT Troplast GmbH, 9.25%, 07/15/25 (Call 07/15/22)(c) | EUR | 100 | 123,904 | |||||||||
K+S AG | EUR | 100 | 107,836 |
SCHEDULE OF INVESTMENTS | 45 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Germany (continued) | ||||||||||||
3.25%, 07/18/24 (Call 04/18/24)(c) | EUR | 100 | $ | 107,140 | ||||||||
4.13%, 12/06/21(c) | EUR | 100 | 118,034 | |||||||||
KME SE, 6.75%, 02/01/23 (Call 11/30/20)(c) | EUR | 100 | 79,210 | |||||||||
LANXESS AG, 4.50%, 12/06/76 (Call 06/06/23)(c)(e) | EUR | 100 | 122,716 | |||||||||
METRO AG, 1.50%, 03/19/25(c) | EUR | 100 | 118,014 | |||||||||
Nidda BondCo GmbH, 5.00%, 09/30/25 (Call 11/30/20)(c) | EUR | 100 | 112,907 | |||||||||
Nidda Healthcare Holding GmbH, 3.50%, 09/30/24 (Call 11/09/20)(c) | EUR | 200 | 225,392 | |||||||||
Peach Property Finance GmbH, 3.50%, 02/15/23 (Call 11/15/22)(c) | EUR | 100 | 114,284 | |||||||||
Platin 1426 GmbH, 5.38%, 06/15/23 (Call 11/09/20)(c) | EUR | 100 | 109,385 | |||||||||
ProGroup AG, 3.00%, 03/31/26 (Call 03/31/21)(c) | EUR | 100 | 114,221 | |||||||||
RWE AG, 3.50%, 04/21/75 | EUR | 50 | 62,304 | |||||||||
Schaeffler AG | EUR | 100 | 115,200 | |||||||||
2.75%, 10/12/25 (Call 07/12/25)(c) | EUR | 100 | 115,642 | |||||||||
2.88%, 03/26/27 (Call 12/26/26)(c) | EUR | 100 | 115,927 | |||||||||
3.38%, 10/12/28 (Call 07/12/28)(c) | EUR | 100 | 116,174 | |||||||||
Summit Properties Ltd., 2.00%, 01/31/25 (Call 01/31/21)(c) | EUR | 100 | 109,554 | |||||||||
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26 (Call 07/30/21)(c) | EUR | 100 | 118,185 | |||||||||
Techem Verwaltungsgesellschaft 675 mbH, 2.00%, 07/15/25 (Call 01/15/22)(c) | EUR | 100 | 110,191 | |||||||||
Tele Columbus AG, 3.88%, 05/02/25 (Call 05/02/21)(c) | EUR | 100 | 109,140 | |||||||||
thyssenkrupp AG | EUR | 125 | 142,025 | |||||||||
1.88%, 03/06/23 (Call 02/06/23)(c) | EUR | 175 | 189,240 | |||||||||
2.50%, 02/25/25(c) | EUR | 100 | 105,762 | |||||||||
2.88%, 02/22/24 (Call 11/22/23)(c) | EUR | 150 | 161,896 | |||||||||
Vertical Holdco GmbH, 6.63%, 07/15/28 | EUR | 100 | 120,084 | |||||||||
Vertical Midco GmbH, 4.38%, 07/15/27 | EUR | 100 | 117,659 | |||||||||
Vertical U.S. Newco Inc., 5.25%, 07/15/27 (Call 07/15/23)(a) | USD | 200 | 205,750 | |||||||||
WEPA Hygieneprodukte GmbH, 2.88%, 12/15/27 (Call 12/15/22)(c) | EUR | 100 | 113,943 | |||||||||
ZF Europe Finance BV | EUR | 300 | 324,914 | |||||||||
3.00%, 10/23/29 (Call 07/23/29)(c) | EUR | 100 | 105,484 | |||||||||
ZF Finance GmbH, 3.75%, 09/21/28 (Call 06/21/28)(c) | EUR | 100 | 113,528 | |||||||||
ZF North America Capital Inc. | EUR | 100 | 117,022 | |||||||||
4.75%, 04/29/25(a) | USD | 150 | 154,947 | |||||||||
|
| |||||||||||
7,260,847 | ||||||||||||
Greece — 0.4% | ||||||||||||
Alpha Bank AE, 4.25%, 02/13/30 (Call 02/13/25)(c)(e) | EUR | 100 | 96,168 | |||||||||
Ellaktor Value PLC, 6.38%, 12/15/24 (Call 12/15/21)(c) | EUR | 100 | 98,779 | |||||||||
Intralot Capital Luxembourg SA, 5.25%, 09/15/24 (Call 11/09/20)(c) | EUR | 100 | 35,771 | |||||||||
National Bank Greece SA, 2.75%, 10/08/26 (Call 10/08/25)(c)(e) | EUR | 150 | 167,516 | |||||||||
Navios Maritime Holdings Inc./Navios Maritime Finance II U.S. Inc., 7.38%, 01/15/22 (Call 11/30/20)(a) | USD | 75 | 35,563 | |||||||||
Piraeus Bank SA, 9.75%, 06/26/29 (Call 06/26/24)(c)(e) | EUR | 100 | 91,149 | |||||||||
Titan Global Finance PLC, 2.38%, 11/16/24 (Call 05/16/24)(c) | EUR | 100 | 115,772 | |||||||||
|
| |||||||||||
640,718 | ||||||||||||
Ireland — 0.6% | ||||||||||||
AerCap Holdings NV, 5.88%, 10/10/79 (Call 10/10/24)(e) | USD | 150 | 118,364 | |||||||||
AIB Group PLC, 1.88%, 11/19/29 (Call 11/19/24)(c)(e) | EUR | 100 | 113,509 |
Security | Par (000) | Value | ||||||||||
Ireland (continued) | ||||||||||||
Bank of Ireland Group PLC, 3.13%, 09/19/27 (Call 09/19/22)(c)(e) | GBP | 100 | $ | 129,384 | ||||||||
eircom Finance DAC, 3.50%, 05/15/26 | EUR | 225 | 261,292 | |||||||||
Smurfit Kappa Acquisitions ULC | EUR | 100 | 120,167 | |||||||||
2.88%, 01/15/26 (Call 10/15/25)(c) | EUR | 100 | 123,793 | |||||||||
Smurfit Kappa Treasury ULC, 1.50%, 09/15/27 (Call 06/15/27)(c) | EUR | 150 | 173,284 | |||||||||
|
| |||||||||||
1,039,793 | ||||||||||||
Israel — 1.3% | ||||||||||||
Leviathan Bond Ltd. | USD | 75 | 76,658 | |||||||||
6.13%, 06/30/25 (Call 03/30/25)(a) | USD | 45 | 46,451 | |||||||||
6.50%, 06/30/27 (Call 12/30/26)(a) | USD | 55 | 56,719 | |||||||||
6.75%, 06/30/30 (Call 12/30/29)(a) | USD | 90 | 92,390 | |||||||||
Teva Pharmaceutical Finance Netherlands II BV | EUR | 200 | 203,675 | |||||||||
1.25%, 03/31/23 (Call 12/31/22)(c) | EUR | 100 | 108,285 | |||||||||
1.63%, 10/15/28(c) | EUR | 100 | 93,553 | |||||||||
1.88%, 03/31/27 (Call 12/31/26)(c) | EUR | 100 | 98,721 | |||||||||
3.25%, 04/15/22 (Call 01/15/22) | EUR | 100 | 116,244 | |||||||||
4.50%, 03/01/25 (Call 12/01/24) | EUR | 100 | 114,789 | |||||||||
6.00%, 01/31/25 (Call 10/31/24) | EUR | 100 | 120,791 | |||||||||
Teva Pharmaceutical Finance Netherlands III BV | USD | 250 | 237,105 | |||||||||
3.15%, 10/01/26 | USD | 400 | 351,716 | |||||||||
6.00%, 04/15/24 (Call 01/15/24) | USD | 200 | 201,600 | |||||||||
6.75%, 03/01/28 (Call 12/01/27) | USD | 200 | 209,940 | |||||||||
7.13%, 01/31/25 (Call 10/31/24) | USD | 200 | 207,250 | |||||||||
|
| |||||||||||
2,335,887 | ||||||||||||
Italy — 5.2% | ||||||||||||
Atlantia SpA | EUR | 100 | 114,520 | |||||||||
1.88%, 07/13/27 (Call 04/13/27)(c) | EUR | 100 | 112,009 | |||||||||
Autostrade per l’Italia SpA | EUR | 100 | 114,155 | |||||||||
1.75%, 06/26/26(c) | EUR | 100 | 113,218 | |||||||||
1.75%, 02/01/27(c) | EUR | 100 | 113,346 | |||||||||
1.88%, 09/26/29 (Call 06/26/29)(c) | EUR | 100 | 113,248 | |||||||||
Banca IFIS SpA, 4.50%, 10/17/27 (Call 10/17/22)(c)(e) | EUR | 100 | 101,000 | |||||||||
Banca Monte dei Paschi di Siena SpA | EUR | 125 | 141,854 | |||||||||
3.63%, 09/24/24(c) | EUR | 100 | 117,194 | |||||||||
5.38%, 01/18/28 (Call 01/18/23)(c)(e) | EUR | 100 | 90,021 | |||||||||
10.50%, 07/23/29(c) | EUR | 100 | 115,903 | |||||||||
Banca Popolare di Sondrio SCPA, 2.38%, 04/03/24(c) | EUR | 100 | 117,492 | |||||||||
Banco BPM SpA | EUR | 200 | 236,603 | |||||||||
2.00%, 03/08/22(c) | EUR | 100 | 118,798 | |||||||||
2.50%, 06/21/24(c) | EUR | 100 | 121,447 | |||||||||
4.38%, 09/21/27 (Call 09/21/22)(c)(e) | EUR | 100 | 116,595 | |||||||||
BPER Banca, 5.13%, 05/31/27 | EUR | 100 | 118,536 | |||||||||
Centurion Bidco SpA, 5.88%, 09/30/26 | EUR | 100 | 112,891 | |||||||||
Esselunga SpA, 0.88%, 10/25/23 (Call 07/25/23)(c) | EUR | 100 | 116,100 | |||||||||
Fiat Chrysler Finance Europe SENC, 4.75%, 07/15/22(c) | EUR | 150 | 185,376 | |||||||||
Iccrea Banca SpA, 1.50%, 10/11/22(c) | EUR | 150 | 175,273 | |||||||||
Infrastrutture Wireless Italiane SpA | EUR | 200 | 233,722 | |||||||||
1.88%, 07/08/26 (Call 04/08/26)(c) | EUR | 100 | 120,843 |
46 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Italy (continued) | ||||||||||||
International Game Technology PLC, 4.75%, 02/15/23 (Call 08/15/22)(c) | EUR | 100 | $ | 115,917 | ||||||||
Intesa Sanpaolo SpA | EUR | 100 | 119,942 | |||||||||
3.93%, 09/15/26(c) | EUR | 100 | 125,374 | |||||||||
5.02%, 06/26/24(a) | USD | 400 | 422,128 | |||||||||
5.15%, 06/10/30(c) | GBP | 100 | 140,462 | |||||||||
6.63%, 09/13/23(c) | EUR | 100 | 131,902 | |||||||||
Leonardo SpA, 1.50%, 06/07/24 | EUR | 100 | 116,231 | |||||||||
Mediobanca Banca di Credito Finanziario SpA, 5.75%, 04/18/23 | EUR | 100 | 127,766 | |||||||||
Nexi SpA, 1.75%, 10/31/24(c) | EUR | 150 | 173,683 | |||||||||
Rekeep SpA, 9.00%, 06/15/22 | EUR | 100 | 115,244 | |||||||||
Rossini Sarl, 6.75%, 10/30/25 (Call 10/30/21)(c) | EUR | 100 | 121,254 | |||||||||
Saipem Finance International BV | EUR | 100 | 111,045 | |||||||||
2.75%, 04/05/22(c) | EUR | 100 | 117,520 | |||||||||
3.38%, 07/15/26 (Call 04/15/26)(c) | EUR | 100 | 110,515 | |||||||||
Sisal Group SpA, 7.00%, 07/31/23 (Call 11/09/20)(c) | EUR | 69 | 78,682 | |||||||||
Societa Cattolica di Assicurazioni SC, 4.25%, 12/14/47 (Call 12/14/27)(c)(e) | EUR | 100 | 117,861 | |||||||||
Telecom Italia SpA/Milano | EUR | 100 | 117,015 | |||||||||
2.50%, 07/19/23(c) | EUR | 100 | 120,222 | |||||||||
2.75%, 04/15/25 (Call 01/15/25)(c) | EUR | 150 | 180,563 | |||||||||
2.88%, 01/28/26 (Call 10/28/25)(c) | EUR | 200 | 240,897 | |||||||||
3.00%, 09/30/25(c) | EUR | 100 | 121,581 | |||||||||
3.25%, 01/16/23(c) | EUR | 200 | 243,959 | |||||||||
3.63%, 01/19/24(c) | EUR | 100 | 123,197 | |||||||||
3.63%, 05/25/26(c) | EUR | 100 | 124,908 | |||||||||
4.00%, 04/11/24 (Call 01/11/24)(c) | EUR | 100 | 124,312 | |||||||||
5.30%, 05/30/24(a) | USD | 200 | 215,772 | |||||||||
UniCredit SpA | EUR | 200 | 216,520 | |||||||||
2.73%, 01/15/32 (Call 01/15/27)(c)(e) | EUR | 200 | 215,715 | |||||||||
4.38%, 01/03/27 (Call 01/03/22)(c)(e) | EUR | 100 | 120,005 | |||||||||
4.88%, 02/20/29 (Call 02/20/24)(c)(e) | EUR | 200 | 245,292 | |||||||||
5.46%, 06/30/35 (Call 06/30/30)(a)(e) | USD | 200 | 202,881 | |||||||||
5.86%, 06/19/32 (Call 06/19/27)(a)(e) | USD | 200 | 210,385 | |||||||||
6.95%, 10/31/22(c) | EUR | 100 | 129,268 | |||||||||
Unione di Banche Italiane SpA | EUR | 250 | 305,860 | |||||||||
4.45%, 09/15/27 (Call 09/15/22)(c)(e) | EUR | 100 | 120,593 | |||||||||
Unipol Gruppo SpA | EUR | 100 | 120,312 | |||||||||
3.25%, 09/23/30 (Call 06/23/30)(c) | EUR | 100 | 117,512 | |||||||||
3.50%, 11/29/27 (Call 08/29/27)(c) | EUR | 100 | 121,099 | |||||||||
UnipolSai Assicurazioni SpA, | EUR | 100 | 120,259 | |||||||||
Webuild SpA, 1.75%, 10/26/24(c) | EUR | 100 | 99,570 | |||||||||
|
| |||||||||||
9,223,367 | ||||||||||||
Japan — 0.4% | ||||||||||||
SoftBank Group Corp. | EUR | 150 | 173,908 | |||||||||
4.00%, 04/20/23 (Call 01/20/23)(c) | EUR | 100 | 119,410 | |||||||||
4.00%, 09/19/29 (Call 06/21/29)(c) | EUR | 125 | 145,056 | |||||||||
4.50%, 04/20/25 (Call 01/20/25)(c) | EUR | 100 | 121,884 | |||||||||
5.00%, 04/15/28 (Call 01/16/28)(c) | EUR | 100 | 122,929 | |||||||||
|
| |||||||||||
683,187 |
Security | Par (000) | Value | ||||||||||
Luxembourg — 1.6% | ||||||||||||
Altice Financing SA | EUR | 100 | $ | 108,382 | ||||||||
3.00%, 01/15/28 (Call 01/15/23)(c) | EUR | 100 | 105,695 | |||||||||
5.00%, 01/15/28 (Call 01/15/23)(a) | USD | 200 | 194,000 | |||||||||
7.50%, 05/15/26 (Call 05/15/21)(a) | USD | 200 | 208,750 | |||||||||
Altice Finco SA, 4.75%, 01/15/28 (Call 10/15/22)(c) | EUR | 100 | 104,969 | |||||||||
Altice France Holding SA | EUR | 100 | 104,407 | |||||||||
6.00%, 02/15/28 (Call 02/15/23)(a) | USD | 200 | 192,075 | |||||||||
8.00%, 05/15/27 (Call 05/15/22)(c) | EUR | 100 | 122,075 | |||||||||
10.50%, 05/15/27 (Call 05/15/22)(a) | USD | 200 | 220,500 | |||||||||
ArcelorMittal, 0.95%, 01/17/23 | EUR | 100 | 116,334 | |||||||||
ArcelorMittal SA | EUR | 100 | 115,899 | |||||||||
2.25%, 01/17/24 (Call 10/17/23)(c) | EUR | 100 | 119,672 | |||||||||
4.55%, 03/11/26 | USD | 100 | 107,422 | |||||||||
Garfunkelux Holdco 3 SA, 8.50%, 11/01/22 (Call 11/09/20)(c) | GBP | 100 | 129,090 | |||||||||
INEOS Finance PLC, 2.88%, 05/01/26 | EUR | 100 | 112,093 | |||||||||
INEOS Group Holdings SA, 5.38%, 08/01/24 (Call 11/09/20)(c) | EUR | 100 | 115,757 | |||||||||
JBS USA LUX SA/JBS USA Finance Inc., 5.75%, 06/15/25 (Call 11/30/20)(a) | USD | 75 | 77,179 | |||||||||
Matterhorn Telecom SA, 4.00%, 11/15/27 (Call 11/15/22)(c) | EUR | 100 | 113,616 | |||||||||
Mytilineos Financial Partners SA, 2.50%, 12/01/24 (Call 06/01/24)(c) | EUR | 100 | 118,582 | |||||||||
SIG Combibloc Purchase Co. Sarl, 2.13%, 06/18/25(c) | EUR | 100 | 118,747 | |||||||||
Summer BC Holdco A Sarl, 9.25%, 10/31/27 (Call 10/31/22)(c) | EUR | 90 | 99,271 | |||||||||
Summer BC Holdco B Sarl, 5.75%, 10/31/26 (Call 10/31/22)(c) | EUR | 100 | 114,629 | |||||||||
Swissport Investments SA, 6.75%, 12/15/21 (Call 11/09/20)(c) | EUR | 100 | 291 | |||||||||
Vivion Investments Sarl, 3.00%, 08/08/24(c) | EUR | 100 | 103,143 | |||||||||
|
| |||||||||||
2,922,578 | ||||||||||||
Macau — 0.5% | ||||||||||||
Melco Resorts Finance Ltd. | USD | 200 | 199,250 | |||||||||
5.38%, 12/04/29 (Call 12/04/24)(a) | USD | 200 | 192,750 | |||||||||
Studio City Finance Ltd., 6.50%, 01/15/28 (Call 07/15/23)(a) | USD | 200 | 198,500 | |||||||||
Wynn Macau Ltd. | USD | 100 | 95,970 | |||||||||
5.50%, 01/15/26 (Call 06/15/22)(a)(b) | USD | 200 | 192,000 | |||||||||
|
| |||||||||||
878,470 | ||||||||||||
Netherlands — 1.9% | ||||||||||||
Intertrust Group BV, | EUR | 100 | 116,520 | |||||||||
IPD 3 BV, 4.50%, 07/15/22 (Call 11/09/20)(c) | EUR | 100 | 106,365 | |||||||||
Koninklijke KPN NV, 7.00%, 03/28/73 | USD | 200 | 208,121 | |||||||||
Lincoln Financing Sarl, 3.63%, 04/01/24 | EUR | 125 | 138,311 | |||||||||
Nouryon Holding BV, 6.50%, 10/01/26 | EUR | 100 | 118,523 | |||||||||
OCI NV | EUR | 100 | 114,548 | |||||||||
5.25%, 11/01/24 (Call 11/01/21)(a) | USD | 200 | 204,500 | |||||||||
PPF Telecom Group BV | EUR | 175 | 204,277 | |||||||||
3.50%, 05/20/24 (Call 02/20/24)(c) | EUR | 100 | 119,601 | |||||||||
Promontoria Holding 264 BV, 6.75%, 08/15/23 (Call 11/30/20)(c) | EUR | 100 | 94,015 | |||||||||
Q-Park Holding I BV, 2.00%, 03/01/27 (Call 03/01/23)(c) | EUR | 150 | 148,957 |
SCHEDULE OF INVESTMENTS | 47 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
Netherlands (continued) | ||||||||||||
Sensata Technologies BV | USD | 75 | $ | 79,375 | ||||||||
5.00%, 10/01/25(a) | USD | 100 | 109,400 | |||||||||
5.63%, 11/01/24(a) | USD | 50 | 54,860 | |||||||||
Sigma Holdco BV, 5.75%, 05/15/26 (Call 05/15/21)(c) | EUR | 100 | 110,940 | |||||||||
Trivium Packaging Finance BV | EUR | 100 | 114,929 | |||||||||
8.50%, 08/15/27 (Call 08/15/22)(a) | USD | 200 | 213,533 | |||||||||
United Group BV | EUR | 100 | 108,651 | |||||||||
4.88%, 07/01/24 (Call 11/30/20)(c) | EUR | 100 | 116,630 | |||||||||
UPC Holding BV, 3.88%, 06/15/29 (Call 06/15/22)(c) | EUR | 100 | 112,284 | |||||||||
Ziggo Bond Co. BV, 3.38%, 02/28/30 (Call 02/15/25)(c) | EUR | 100 | 110,556 | |||||||||
Ziggo BV | EUR | 100 | 113,370 | |||||||||
4.25%, 01/15/27 (Call 01/15/22)(c) | EUR | 90 | 107,644 | |||||||||
4.88%, 01/15/30 (Call 10/15/24)(a) | USD | 200 | 207,375 | |||||||||
5.50%, 01/15/27 (Call 01/15/22)(a) | USD | 225 | 233,438 | |||||||||
|
| |||||||||||
3,366,723 | ||||||||||||
Portugal — 0.3% | ||||||||||||
Banco Comercial Portugues SA, 3.87%, 03/27/30 (Call 03/27/25)(c)(e) | EUR | 100 | 102,747 | |||||||||
Caixa Geral de Depositos SA, 1.25%, 11/25/24(c) | EUR | 100 | 116,957 | |||||||||
EDP - Energias de Portugal SA | EUR | 100 | 112,613 | |||||||||
4.50%, 04/30/79 (Call 01/30/24)(c)(e) | EUR | 100 | 125,494 | |||||||||
Transportes Aereos Portugueses SA, 5.63%, 12/02/24 (Call 06/02/24)(c) | EUR | 100 | 66,397 | |||||||||
|
| |||||||||||
524,208 | ||||||||||||
Singapore — 0.1% | ||||||||||||
Puma International Financing SA, 5.13%, 10/06/24 (Call 11/10/20)(a) | USD | 200 | 168,619 | |||||||||
|
| |||||||||||
Spain — 1.5% | ||||||||||||
Abanca Corp. Bancaria SA, 4.63%, 04/07/30 (Call 04/07/25)(c)(e) | EUR | 100 | 113,433 | |||||||||
Banco de Sabadell SA | EUR | 100 | 111,275 | |||||||||
1.75%, 05/10/24(c) | EUR | 100 | 114,726 | |||||||||
5.38%, 12/12/28 (Call 12/12/23)(c)(e) | EUR | 100 | 119,127 | |||||||||
Bankia SA | EUR | 100 | 118,073 | |||||||||
1.13%, 11/12/26(c) | EUR | 100 | 117,407 | |||||||||
3.75%, 02/15/29 (Call 02/15/24)(c)(e) | EUR | 100 | 122,457 | |||||||||
Cellnex Telecom SA | EUR | 100 | 114,664 | |||||||||
1.88%, 06/26/29 (Call 03/26/29) | EUR | 100 | 118,574 | |||||||||
2.88%, 04/18/25 (Call 01/18/25)(c) | EUR | 100 | 125,925 | |||||||||
3.13%, 07/27/22(c) | EUR | 100 | 122,304 | |||||||||
Cirsa Finance International Sarl, 6.25%, 12/20/23 (Call 11/09/20)(c) | EUR | 100 | 103,217 | |||||||||
ContourGlobal Power Holdings SA, 3.38%, 08/01/23 (Call 11/30/20)(c) | EUR | 100 | 116,009 | |||||||||
eDreams ODIGEO SA, 5.50%, 09/01/23 (Call 11/09/20)(c) | EUR | 100 | 96,940 | |||||||||
El Corte Ingles SA, 3.00%, 03/15/24 (Call 11/30/20)(c) | EUR | 100 | 115,223 | |||||||||
Gestamp Funding Luxembourg SA, 3.50%, 05/15/23 (Call 11/09/20)(c) | EUR | 100 | 113,838 | |||||||||
Grifols SA | EUR | 100 | 114,186 | |||||||||
2.25%, 11/15/27 (Call 11/15/22)(c) | EUR | 100 | 114,572 | |||||||||
3.20%, 05/01/25 (Call 11/30/20)(c) | EUR | 100 | 115,839 |
Security | Par (000) | Value | ||||||||||
Spain (continued) | ||||||||||||
Grupo Isolux Corsan SA | ||||||||||||
Series B, 6.00%, 12/30/21 | EUR | 28 | $ | 16 | ||||||||
Series C, 1.00%, 12/30/21 | EUR | 0 | 0 | (g) | ||||||||
Grupo-Antolin Irausa SA, 3.25%, 04/30/24 (Call 11/09/20)(c) | EUR | 100 | 102,500 | |||||||||
Ibercaja Banco SA, 2.75%, 07/23/30 (Call 07/23/25)(c)(e) | EUR | 100 | 105,680 | |||||||||
NH Hotel Group SA, 3.75%, 10/01/23 (Call 11/09/20)(c) | EUR | 90 | 96,735 | |||||||||
Obrascon Huarte Lain SA, 4.75%, 03/15/22 (Call 11/30/20)(c) | EUR | 100 | 57,078 | |||||||||
Repsol International Finance BV, 4.50%, 03/25/75 (Call 03/25/25)(c)(e) | EUR | 100 | 120,371 | |||||||||
|
| |||||||||||
2,670,169 | ||||||||||||
Sweden — 0.9% | ||||||||||||
Akelius Residential Property AB, 3.88%, 10/05/78 (Call 07/08/23)(c)(e) | EUR | 100 | 119,413 | |||||||||
Dometic Group AB, 3.00%, 05/08/26 (Call 04/08/26)(c) | EUR | 125 | 144,343 | |||||||||
Fastighets AB Balder, 3.00%, 03/07/78 (Call 03/07/23)(c)(e) | EUR | 100 | 114,383 | |||||||||
Intrum AB | EUR | 10 | 11,566 | |||||||||
3.13%, 07/15/24 (Call 11/30/20)(c) | EUR | 100 | 109,517 | |||||||||
3.50%, 07/15/26 (Call 07/15/22)(c) | EUR | 200 | 207,306 | |||||||||
4.88%, 08/15/25 (Call 08/15/22)(c) | EUR | 100 | 113,273 | |||||||||
Telefonaktiebolaget LM Ericsson, 4.13%, 05/15/22 | USD | 225 | 232,493 | |||||||||
Verisure Holding AB, 3.88%, 07/15/26 (Call 07/15/22)(c) | EUR | 100 | 115,869 | |||||||||
Verisure Midholding AB, 5.75%, 12/01/23 (Call 11/09/20)(c) | EUR | 200 | 230,791 | |||||||||
Volvo Car AB, 2.13%, 04/02/24 (Call 01/02/24)(c) | EUR | 100 | 117,333 | |||||||||
|
| |||||||||||
1,516,287 | ||||||||||||
Switzerland — 0.2% | ||||||||||||
Dufry One BV | EUR | 100 | 101,503 | |||||||||
2.50%, 10/15/24 (Call 11/30/20)(c) | EUR | 100 | 104,909 | |||||||||
Walnut Bidco PLC, 6.75%, 08/01/24 (Call 08/01/21)(c) | EUR | 100 | 112,631 | |||||||||
|
| |||||||||||
319,043 | ||||||||||||
United Kingdom — 4.3% | ||||||||||||
Algeco Global Finance PLC, 6.50%, 02/15/23 (Call 11/30/20)(c) | EUR | 100 | 112,757 | |||||||||
Arqiva Broadcast Finance PLC, 6.75%, 09/30/23 (Call 11/30/20)(c) | GBP | 100 | 132,579 | |||||||||
Avon International Capital PLC, 6.50%, 08/15/22 (Call 11/02/20)(a) | USD | 50 | 50,908 | |||||||||
B&M European Value Retail SA, 3.63%, 07/15/25 (Call 07/15/22)(c) | GBP | 100 | 130,504 | |||||||||
British Telecommunications PLC, 1.87%, 08/18/80 (Call 05/18/25)(c)(e) | EUR | 100 | 109,334 | |||||||||
Cabot Financial Luxembourg SA, 7.50%, 10/01/23 (Call 11/09/20)(c) | GBP | 100 | 130,581 | |||||||||
Connect Finco Sarl/Connect U.S. Finco LLC, 6.75%, 10/01/26 (Call 10/01/22)(a) | USD | 200 | 201,750 | |||||||||
eG Global Finance PLC | EUR | 100 | 106,270 | |||||||||
6.25%, 10/30/25 (Call 10/30/21)(c) | EUR | 100 | 110,634 | |||||||||
6.75%, 02/07/25 (Call 05/15/21)(a) | USD | 200 | 196,000 | |||||||||
FCE Bank PLC, 1.13%, 02/10/22(c) | EUR | 100 | 114,432 | |||||||||
Fiat Chrysler Automobiles NV | EUR | 125 | 152,451 | |||||||||
3.75%, 03/29/24(c) | EUR | 200 | 249,585 | |||||||||
3.88%, 01/05/26 (Call 10/05/25)(c) | EUR | 150 | 191,016 | |||||||||
4.50%, 07/07/28 (Call 04/07/28)(c) | EUR | 100 | 135,092 | |||||||||
5.25%, 04/15/23 | USD | 200 | 211,958 |
48 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United Kingdom (continued) | ||||||||||||
GKN Holdings Ltd., 5.38%, 09/19/22(c) | GBP | 100 | $ | 133,761 | ||||||||
Heathrow Finance PLC, 3.88%, 03/01/27(c) | GBP | 100 | 116,068 | |||||||||
Iceland Bondco PLC, 4.63%, 03/15/25 (Call 03/15/21)(c) | GBP | 100 | 122,507 | |||||||||
INEOS Styrolution Group GmbH, 2.25%, 01/16/27 (Call 01/15/23)(c) | EUR | 100 | 108,608 | |||||||||
International Consolidated Airlines Group SA, 1.50%, 07/04/27 (Call 04/04/27)(c) | EUR | 100 | 85,616 | |||||||||
Jaguar Land Rover Automotive PLC | EUR | 100 | 98,083 | |||||||||
3.88%, 03/01/23(c) | GBP | 100 | 119,174 | |||||||||
4.50%, 01/15/26(c) | EUR | 100 | 97,194 | |||||||||
5.63%, 02/01/23 (Call 11/30/20)(a) | USD | 150 | 145,273 | |||||||||
5.88%, 11/15/24 (Call 08/15/24)(c) | EUR | 100 | 106,989 | |||||||||
Jerrold Finco PLC, 4.88%, 01/15/26 (Call 01/15/22)(c) | GBP | 100 | 118,471 | |||||||||
Marks & Spencer PLC, 6.00%, 06/12/25(c) | GBP | 100 | 139,874 | |||||||||
Metro Bank PLC, 5.50%, 06/26/28 (Call 06/26/23)(c)(e) | GBP | 100 | 46,979 | |||||||||
Motion Finco Sarl, 7.00%, 05/15/25 (Call 05/15/22)(c) | EUR | 100 | 113,454 | |||||||||
Pinewood Finance Co. Ltd., 3.25%, 09/30/25 (Call 09/30/21)(c) | GBP | 100 | 127,928 | |||||||||
Playtech PLC, 4.25%, 03/07/26 | EUR | 100 | 114,551 | |||||||||
Rolls-Royce PLC | EUR | 100 | 105,045 | |||||||||
3.38%, 06/18/26 | GBP | 100 | 119,441 | |||||||||
4.63%, 02/16/26 (Call 11/16/25)(c) | EUR | 100 | 116,440 | |||||||||
Stonegate Pub Co. Financing 2019 PLC, 8.25%, 07/31/25 (Call 07/31/22)(c) | GBP | 100 | 120,340 | |||||||||
Synthomer PLC, 3.88%, 07/01/25 (Call 07/01/22)(c) | EUR | 100 | 118,551 | |||||||||
Thames Water Utilities Finance PLC, 5.75%, 09/13/30 (Call 09/13/22)(e) | GBP | 125 | 170,475 | |||||||||
Very Group Funding Plc/The, 7.75%, 11/15/22 | GBP | 100 | 125,980 | |||||||||
Victoria PLC, 5.25%, 07/15/24 (Call 07/15/21)(c) | EUR | 100 | 118,519 | |||||||||
Virgin Media Finance PLC | EUR | 100 | 110,674 | |||||||||
5.00%, 07/15/30 (Call 07/15/25)(a) | USD | 200 | 199,000 | |||||||||
Virgin Media Secured Finance PLC | GBP | 150 | 189,338 | |||||||||
5.00%, 04/15/27 (Call 04/15/22)(c) | GBP | 100 | 133,783 | |||||||||
5.50%, 05/15/29 (Call 05/15/24)(a) | USD | 200 | 213,429 | |||||||||
Virgin Media Vendor Financing Notes III DAC, 4.88%, 07/15/28 | GBP | 100 | 128,730 | |||||||||
Viridian Group FinanceCo PLC/Viridian Power and Energy, 4.00%, 09/15/25 | EUR | 100 | 115,028 | |||||||||
Vmed O2 UK Financing I PLC | EUR | 150 | 170,844 | |||||||||
4.00%, 01/31/29 (Call 01/31/24)(c) | GBP | 100 | 126,329 | |||||||||
Vodafone Group PLC | EUR | 200 | 235,722 | |||||||||
4.20%, 10/03/78 (Call 07/03/28)(c)(e) | EUR | 100 | 126,910 | |||||||||
4.88%, 10/03/78 | GBP | 100 | 137,289 | |||||||||
7.00%, 04/04/79 (Call 01/04/29)(e) | USD | 275 | 325,449 | |||||||||
Series NC10, 3.00%, Series NC10, 08/27/80 (Call 05/27/30)(c)(e) | EUR | 100 | 113,818 | |||||||||
Series NC6, 2.63%, Series NC6, 08/27/80 (Call 05/27/26)(c)(e) | EUR | 100 | 114,856 | |||||||||
|
| |||||||||||
7,566,371 | ||||||||||||
United States — 65.8% | ||||||||||||
Acadia Healthcare Co. Inc. | USD | 20 | 20,656 | |||||||||
5.50%, 07/01/28 (Call 07/01/23)(a) | USD | 30 | 31,294 | |||||||||
5.63%, 02/15/23 (Call 11/30/20) | USD | 80 | 80,417 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Acrisure LLC/Acrisure Finance Inc. | USD | 115 | $ | 115,086 | ||||||||
8.13%, 02/15/24 (Call 02/15/21)(a) | USD | 120 | 125,269 | |||||||||
10.13%, 08/01/26 (Call 08/01/22)(a) | USD | 30 | �� | 33,225 | ||||||||
Adient Global Holdings Ltd., 3.50%, 08/15/24 | EUR | 100 | 108,321 | |||||||||
Adient U.S. LLC | USD | 200 | 213,292 | |||||||||
9.00%, 04/15/25 (Call 04/15/22)(a) | USD | 60 | 66,057 | |||||||||
ADT Security Corp. (The) | USD | 125 | 127,106 | |||||||||
4.13%, 06/15/23 | USD | 90 | 93,622 | |||||||||
AECOM | USD | 125 | 137,062 | |||||||||
5.88%, 10/15/24 (Call 07/15/24) | USD | 100 | 109,850 | |||||||||
AES Corp. (The) | USD | 70 | 75,068 | |||||||||
5.50%, 04/15/25 (Call 11/30/20) | USD | 70 | 71,905 | |||||||||
6.00%, 05/15/26 (Call 05/15/21) | USD | 65 | 68,108 | |||||||||
Albertsons Companies Inc./Safeway Inc./New Albertsons LP/Albertsons LLC | USD | 55 | 54,021 | |||||||||
3.50%, 02/15/23 (Call 12/15/22)(a) | USD | 60 | 61,014 | |||||||||
3.50%, 03/15/29 (Call 09/15/23)(a) | USD | 70 | 67,837 | |||||||||
4.63%, 01/15/27 (Call 01/15/23)(a) | USD | 170 | 175,474 | |||||||||
4.88%, 02/15/30 (Call 02/15/25)(a) | USD | 100 | 106,210 | |||||||||
5.75%, 03/15/25 (Call 11/30/20) | USD | 120 | 123,900 | |||||||||
5.88%, 02/15/28 (Call 08/15/22)(a) | USD | 125 | 133,185 | |||||||||
7.50%, 03/15/26 (Call 03/15/22)(a) | USD | 75 | 82,752 | |||||||||
Alcoa Nederland Holding BV | USD | 200 | 213,856 | |||||||||
7.00%, 09/30/26 (Call 09/30/21)(a) | USD | 200 | 210,500 | |||||||||
Allegheny Technologies Inc., 7.88%, 08/15/23 (Call 05/15/23) | USD | 65 | 65,440 | |||||||||
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer | USD | 70 | 69,742 | |||||||||
6.75%, 10/15/27 (Call 10/15/22)(a) | USD | 89 | 93,450 | |||||||||
Allied Universal Holdco LLC/Allied Universal Finance Corp. | USD | 170 | 177,975 | |||||||||
9.75%, 07/15/27 (Call 07/15/22)(a) | USD | 140 | 150,046 | |||||||||
Allison Transmission Inc. | USD | 50 | 51,592 | |||||||||
5.00%, 10/01/24 (Call 11/10/20)(a) | USD | 75 | 75,718 | |||||||||
5.88%, 06/01/29 (Call 06/01/24)(a) | USD | 70 | 76,454 | |||||||||
Ally Financial Inc., 5.75%, 11/20/25 (Call 10/21/25) | USD | 130 | 147,753 | |||||||||
AMC Entertainment Holdings Inc. | USD | 50 | 27,000 | |||||||||
10.50%, 04/24/26 (Call 06/15/22)(a) | USD | 92 | 46,920 | |||||||||
AMC Networks Inc. | USD | 33 | 32,933 | |||||||||
4.75%, 08/01/25 (Call 08/01/21) | USD | 100 | 100,007 | |||||||||
5.00%, 04/01/24 (Call 11/30/20) | USD | 125 | 125,664 | |||||||||
American Airlines Group Inc. | USD | 65 | 30,810 | |||||||||
5.00%, 06/01/22(a) | USD | 95 | 61,988 | |||||||||
American Airlines Inc., 11.75%, 07/15/25(a) | USD | 300 | 291,915 | |||||||||
American Axle & Manufacturing Inc. | USD | 90 | 90,815 | |||||||||
6.25%, 03/15/26 (Call 03/15/21) | USD | 50 | 50,130 |
SCHEDULE OF INVESTMENTS | 49 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
6.50%, 04/01/27 (Call 04/01/22) | USD | 60 | $ | 60,280 | ||||||||
6.88%, 07/01/28 (Call 07/01/23) | USD | 50 | 50,938 | |||||||||
American Builders & Contractors Supply Co. Inc., 4.00%, 01/15/28 (Call 01/15/23)(a) | USD | 100 | 101,446 | |||||||||
AmeriGas Partners LP/AmeriGas Finance Corp. | USD | 90 | 96,075 | |||||||||
5.63%, 05/20/24 (Call 03/20/24) | USD | 85 | 90,631 | |||||||||
5.75%, 05/20/27 (Call 02/20/27) | USD | 75 | 82,519 | |||||||||
5.88%, 08/20/26 (Call 05/20/26) | USD | 75 | 82,125 | |||||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. | USD | 80 | 74,816 | |||||||||
5.75%, 03/01/27 (Call 03/01/22)(a) | USD | 85 | 76,500 | |||||||||
5.75%, 01/15/28 (Call 01/15/23)(a) | USD | 80 | 71,091 | |||||||||
Antero Resources Corp. | USD | 75 | 55,669 | |||||||||
5.13%, 12/01/22 (Call 11/30/20) | USD | 65 | 60,288 | |||||||||
5.38%, 11/01/21 (Call 11/30/20) | USD | 170 | 170,340 | |||||||||
5.63%, 06/01/23 (Call 11/30/20)(b) | USD | 95 | 80,107 | |||||||||
Apache Corp. | USD | 75 | 66,422 | |||||||||
4.38%, 10/15/28 (Call 07/15/28) | USD | 100 | 91,625 | |||||||||
4.63%, 11/15/25 (Call 08/15/25) | USD | 15 | 14,213 | |||||||||
4.88%, 11/15/27 (Call 05/15/27) | USD | 95 | 89,676 | |||||||||
APX Group Inc. | USD | 80 | 83,376 | |||||||||
7.88%, 12/01/22 (Call 11/30/20) | USD | 94 | 93,857 | |||||||||
Aramark Services Inc. | USD | 50 | 49,688 | |||||||||
5.00%, 04/01/25 (Call 11/30/20)(a)(b) | USD | 75 | 76,130 | |||||||||
5.00%, 02/01/28 (Call 02/01/23)(a)(b) | USD | 145 | 146,466 | |||||||||
6.38%, 05/01/25 (Call 05/01/22)(a)(b) | USD | 195 | 204,653 | |||||||||
Archrock Partners LP/Archrock Partners Finance Corp. | USD | 40 | 38,600 | |||||||||
6.88%, 04/01/27 (Call 04/01/22)(a) | USD | 65 | 63,863 | |||||||||
Arconic Corp. | USD | 70 | 74,113 | |||||||||
6.13%, 02/15/28 (Call 02/15/23)(a) | USD | 75 | 79,163 | |||||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. | EUR | 225 | 256,515 | |||||||||
5.25%, 08/15/27 (Call 08/15/22)(a) | USD | 400 | 410,624 | |||||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp. | USD | 75 | 66,563 | |||||||||
9.00%, 11/01/27 (Call 11/01/26)(a) | USD | 45 | 43,650 | |||||||||
Avantor Funding Inc., 4.63%, 07/15/28 (Call 07/15/23)(a)(b) | USD | 180 | 186,516 | |||||||||
Avantor Inc. | EUR | 100 | 120,439 | |||||||||
6.00%, 10/01/24 (Call 11/06/20)(a) | USD | 190 | 198,531 | |||||||||
Avaya Inc., 6.13%, 09/15/28 (Call 09/15/23)(a) | USD | 100 | 103,000 | |||||||||
Avient Corp., 5.75%, 05/15/25 (Call 05/15/22)(a) | USD | 95 | 100,344 | |||||||||
Avis Budget Car Rental LLC/Avis Budget Finance Inc. | USD | 55 | 51,459 | |||||||||
10.50%, 05/15/25 (Call 05/15/22)(a) | USD | 65 | 74,913 | |||||||||
Avis Budget Finance PLC, 4.75%, 01/30/26 (Call 09/30/21)(c) | EUR | 100 | 102,076 | |||||||||
Avon International Operations Inc., 7.88%, 08/15/22 (Call 11/02/20)(a) | USD | 65 | 66,212 | |||||||||
Avon Products Inc., 7.00%, 03/15/23 | USD | 50 | 54,000 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Axalta Coating Systems Dutch Holding B BV, 3.75%, 01/15/25 (Call 11/30/20)(c) | EUR | 125 | $ | 146,659 | ||||||||
B&G Foods Inc. | USD | 115 | 118,450 | |||||||||
5.25%, 09/15/27 (Call 03/01/22)(b) | USD | 70 | 71,968 | |||||||||
Ball Corp. | EUR | 100 | 114,307 | |||||||||
2.88%, 08/15/30 (Call 05/15/30) | USD | 125 | 123,331 | |||||||||
4.00%, 11/15/23 | USD | 125 | 131,939 | |||||||||
4.38%, 12/15/23 | EUR | 200 | 254,411 | |||||||||
4.88%, 03/15/26 (Call 12/15/25) | USD | 95 | 105,970 | |||||||||
5.00%, 03/15/22 | USD | 50 | 52,063 | |||||||||
5.25%, 07/01/25 | USD | 125 | 141,456 | |||||||||
Banff Merger Sub Inc., 9.75%, 09/01/26 (Call 09/01/21)(a) | USD | 185 | 194,134 | |||||||||
Bausch Health Americas Inc. | USD | 220 | 240,350 | |||||||||
9.25%, 04/01/26 (Call 04/01/22)(a) | USD | 190 | 209,475 | |||||||||
Bausch Health Companies Inc. | EUR | 225 | 259,079 | |||||||||
5.00%, 01/30/28 (Call 01/30/23)(a) | USD | 180 | 177,908 | |||||||||
5.25%, 01/30/30 (Call 01/30/25)(a) | USD | 130 | 128,348 | |||||||||
5.50%, 11/01/25 (Call 11/30/20)(a)(b) | USD | 220 | 225,896 | |||||||||
5.75%, 08/15/27 (Call 08/15/22)(a) | USD | 65 | 69,713 | |||||||||
6.13%, 04/15/25 (Call 11/30/20)(a) | USD | 360 | 369,450 | |||||||||
6.25%, 02/15/29 (Call 02/15/24)(a) | USD | 160 | 164,997 | |||||||||
7.00%, 03/15/24 (Call 11/30/20)(a) | USD | 100 | 103,625 | |||||||||
7.00%, 01/15/28 (Call 01/15/23)(a) | USD | 95 | 100,506 | |||||||||
7.25%, 05/30/29 (Call 05/30/24)(a) | USD | 95 | 102,410 | |||||||||
9.00%, 12/15/25 (Call 12/15/21)(a) | USD | 140 | 152,494 | |||||||||
Beacon Roofing Supply Inc., 4.88%, 11/01/25 (Call 11/30/20)(a) | USD | 165 | 161,865 | |||||||||
Belden Inc., 3.88%, 03/15/28 (Call 03/15/23)(c) | EUR | 150 | 173,903 | |||||||||
Berry Global Inc. | EUR | 100 | 111,642 | |||||||||
4.50%, 02/15/26 (Call 02/15/21)(a)(b) | USD | 65 | 65,868 | |||||||||
4.88%, 07/15/26 (Call 07/15/22)(a)(b) | USD | 180 | 188,460 | |||||||||
5.63%, 07/15/27 (Call 07/15/22)(a)(b) | USD | 65 | 68,121 | |||||||||
Black Knight InfoServ LLC, 3.63%, 09/01/28 (Call 09/01/23)(a) | USD | 100 | 100,747 | |||||||||
Blue Cube Spinco LLC, 10.00%, 10/15/25 (Call 11/30/20) | USD | 65 | 68,592 | |||||||||
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.13%, 11/15/22 (Call 11/30/20)(a) | USD | 105 | 102,375 | |||||||||
Boxer Parent Co. Inc. | EUR | 100 | 121,035 | |||||||||
7.13%, 10/02/25 (Call 06/01/22)(a) | USD | 65 | 69,577 | |||||||||
Boyd Gaming Corp. | USD | 125 | 121,445 | |||||||||
6.00%, 08/15/26 (Call 08/15/21) | USD | 90 | 92,839 | |||||||||
6.38%, 04/01/26 (Call 04/01/21) | USD | 95 | 98,570 | |||||||||
8.63%, 06/01/25 (Call 06/01/22)(a) | USD | 60 | 65,682 | |||||||||
Brand Industrial Services Inc., 8.50%, 07/15/25 | USD | 125 | 116,875 | |||||||||
Brink’s Co. (The), 5.50%, 07/15/25 (Call 07/15/22)(a) | USD | 215 | 223,062 | |||||||||
Buckeye Partners LP | USD | 75 | 69,750 | |||||||||
4.13%, 03/01/25 (Call 02/01/25)(a) | USD | 50 | 47,250 | |||||||||
4.13%, 12/01/27 (Call 09/01/27) | USD | 75 | 69,625 | |||||||||
4.15%, 07/01/23 (Call 04/01/23) | USD | 50 | 49,438 | |||||||||
4.50%, 03/01/28 (Call 12/01/27)(a) | USD | 50 | 47,500 | |||||||||
6.38%, 01/22/78 (Call 01/22/23)(e) | USD | 50 | 32,300 |
50 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Builders FirstSource Inc. | USD | 75 | $ | 78,938 | ||||||||
6.75%, 06/01/27 (Call 06/01/22)(a) | USD | 50 | 53,625 | |||||||||
Caesars Entertainment Inc. | USD | 455 | 466,943 | |||||||||
8.13%, 07/01/27 (Call 07/01/23)(a)(b) | USD | 160 | 166,811 | |||||||||
Caesars Resort Collection LLC / CRC Finco Inc., 5.75%, 07/01/25 (Call 07/01/22)(a) | USD | 110 | 112,957 | |||||||||
Caesars Resort Collection LLC/CRC Finco Inc., 5.25%, 10/15/25 (Call 11/10/20)(a) | USD | 240 | 227,748 | |||||||||
Callon Petroleum Co. | USD | 75 | 25,250 | |||||||||
6.25%, 04/15/23 (Call 11/30/20) | USD | 35 | 13,291 | |||||||||
6.38%, 07/01/26 (Call 07/01/21) | USD | 50 | 11,607 | |||||||||
Calpine Corp. | USD | 155 | 157,274 | |||||||||
4.63%, 02/01/29 (Call 02/01/24)(a) | USD | 65 | 65,605 | |||||||||
5.00%, 02/01/31 (Call 02/01/26)(a) | USD | 65 | 66,487 | |||||||||
5.13%, 03/15/28 (Call 03/15/23)(a) | USD | 150 | 154,727 | |||||||||
5.25%, 06/01/26 (Call 06/01/21)(a) | USD | 175 | 180,008 | |||||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp., 11.00%, 04/15/25 (Call 10/15/21)(a)(b) | USD | 70 | 67,827 | |||||||||
Carnival Corp. | USD | 75 | 77,953 | |||||||||
10.50%, 02/01/26 (Call 08/01/23)(a)(b) | USD | 80 | 86,563 | |||||||||
Carnival PLC, 1.00%, 10/28/29 (Call 07/28/29) | EUR | 100 | 65,086 | |||||||||
Carvana Co. | USD | 55 | 54,244 | |||||||||
5.88%, 10/01/28 (Call 10/01/23)(a) | USD | 65 | 63,965 | |||||||||
Catalent Pharma Solutions Inc., 2.38%, 03/01/28 (Call 03/01/23)(c) | EUR | 100 | 111,092 | |||||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | USD | 65 | 65,650 | |||||||||
4.25%, 02/01/31 (Call 07/01/25)(a) | USD | 350 | 358,861 | |||||||||
4.50%, 08/15/30 (Call 02/15/25)(a) | USD | 360 | 374,040 | |||||||||
4.50%, 05/01/32 (Call 05/01/26)(a) | USD | 310 | 320,462 | |||||||||
4.75%, 03/01/30 (Call 09/01/24)(a) | USD | 335 | 352,287 | |||||||||
5.00%, 02/01/28 (Call 08/01/22)(a) | USD | 265 | 278,581 | |||||||||
5.13%, 05/01/27 (Call 05/01/22)(a) | USD | 405 | 425,250 | |||||||||
5.38%, 05/01/25 (Call 11/06/20)(a) | USD | 95 | 97,508 | |||||||||
5.38%, 06/01/29 (Call 06/01/24)(a) | USD | 190 | 204,618 | |||||||||
5.50%, 05/01/26 (Call 05/01/21)(a) | USD | 190 | 197,404 | |||||||||
5.75%, 02/15/26 (Call 02/15/21)(a) | USD | 265 | 275,046 | |||||||||
5.88%, 05/01/27 (Call 05/01/21)(a) | USD | 100 | 104,438 | |||||||||
CDK Global Inc. | USD | 75 | 77,678 | |||||||||
5.00%, 10/15/24 (Call 07/15/24) | USD | 65 | 70,624 | |||||||||
5.25%, 05/15/29 (Call 05/15/24)(a) | USD | 65 | 69,624 | |||||||||
5.88%, 06/15/26 (Call 06/15/21) | USD | 65 | 67,633 | |||||||||
CDW LLC/CDW Finance Corp. | USD | 40 | 39,852 | |||||||||
4.13%, 05/01/25 (Call 05/01/22) | USD | 75 | 77,884 | |||||||||
4.25%, 04/01/28 (Call 10/01/22) | USD | 75 | 77,589 | |||||||||
5.50%, 12/01/24 (Call 06/01/24) | USD | 70 | 77,179 | |||||||||
Cedar Fair LP, 5.25%, 07/15/29 | USD | 70 | 63,306 | |||||||||
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op | USD | 85 | 78,944 | |||||||||
5.50%, 05/01/25 (Call 05/01/22)(a) | USD | 150 | 151,875 | |||||||||
Centene Corp. | USD | 155 | 161,217 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
3.38%, 02/15/30 (Call 02/15/25)(b) | USD | 300 | $ | 311,165 | ||||||||
4.25%, 12/15/27 (Call 12/15/22) | USD | 315 | 330,826 | |||||||||
4.63%, 12/15/29 (Call 12/15/24)(b) | USD | 365 | 397,861 | |||||||||
4.75%, 01/15/25 (Call 11/30/20) | USD | 250 | 257,112 | |||||||||
5.38%, 06/01/26 (Call 06/01/21)(a) | USD | 300 | 315,663 | |||||||||
5.38%, 08/15/26 (Call 08/15/21)(a)(b) | USD | 95 | 99,790 | |||||||||
CenturyLink Inc. | USD | 130 | 133,087 | |||||||||
5.13%, 12/15/26 (Call 12/15/22)(a)(b) | USD | 155 | 158,112 | |||||||||
5.63%, 04/01/25 (Call 01/01/25)(b) | USD | 65 | 68,250 | |||||||||
Series T, 5.80%, 03/15/22 | USD | 75 | 78,000 | |||||||||
Series W, 6.75%, 12/01/23 | USD | 75 | 81,576 | |||||||||
Series Y, 7.50%, 04/01/24 (Call 01/01/24) | USD | 125 | 137,854 | |||||||||
CF Industries Inc., 3.45%, 06/01/23 | USD | 95 | 97,256 | |||||||||
Change Healthcare Holdings LLC/Change Healthcare Finance Inc., 5.75%, 03/01/25 (Call 11/10/20)(a) | USD | 125 | 124,790 | |||||||||
Charles River Laboratories International Inc. | USD | 65 | 67,855 | |||||||||
5.50%, 04/01/26 (Call 04/01/21)(a) | USD | 65 | 67,925 | |||||||||
Chemours Co. (The) | USD | 65 | 63,456 | |||||||||
6.63%, 05/15/23 (Call 11/30/20) | USD | 115 | 114,443 | |||||||||
7.00%, 05/15/25 (Call 11/30/20)(b) | USD | 95 | 95,761 | |||||||||
Cheniere Energy Inc., 4.63%, 10/15/28 (Call 10/15/23)(a) | USD | 260 | 267,837 | |||||||||
Cheniere Energy Partners LP | USD | 136 | 138,339 | |||||||||
5.63%, 10/01/26 (Call 10/01/21) | USD | 240 | 245,700 | |||||||||
Series WI, 4.50%, 10/01/29 (Call 10/01/24) | USD | 190 | 193,562 | |||||||||
CHS/Community Health Systems Inc. | USD | 290 | 288,129 | |||||||||
6.63%, 02/15/25 (Call 02/15/22)(a) | USD | 205 | 200,644 | |||||||||
6.88%, 04/01/28 (Call 04/01/23)(a) | USD | 185 | 93,517 | |||||||||
8.00%, 03/15/26 (Call 03/15/22)(a) | USD | 285 | 286,510 | |||||||||
8.00%, 12/15/27 (Call 12/15/22)(a) | USD | 89 | 87,665 | |||||||||
8.13%, 06/30/24 (Call 06/30/21)(a) | USD | 170 | 131,563 | |||||||||
8.63%, 01/15/24 (Call 01/15/21)(a) | USD | 130 | 132,007 | |||||||||
9.88%, 06/30/23 (Call 11/16/20)(a)(h) | USD | 195 | 161,780 | |||||||||
Churchill Downs Inc. | USD | 50 | 50,521 | |||||||||
5.50%, 04/01/27 (Call 04/01/22)(a) | USD | 80 | 82,400 | |||||||||
Cincinnati Bell Inc., 7.00%, 07/15/24 (Call 11/30/20)(a) | USD | 80 | 82,614 | |||||||||
Cinemark USA Inc. | USD | 95 | 79,291 | |||||||||
5.13%, 12/15/22 (Call 11/30/20) | USD | 50 | 43,063 | |||||||||
CIT Group Inc. | USD | 110 | 114,476 | |||||||||
4.75%, 02/16/24 (Call 11/16/23) | USD | 65 | 69,794 | |||||||||
5.00%, 08/15/22 | USD | 95 | 100,581 | |||||||||
5.00%, 08/01/23 | USD | 100 | 107,625 | |||||||||
5.25%, 03/07/25 (Call 12/07/24) | USD | 65 | 72,583 | |||||||||
6.13%, 03/09/28 | USD | 50 | 60,890 | |||||||||
Citgo Holding Inc., 9.25%, 08/01/24 (Call 08/01/21)(a) | USD | 175 | 146,562 | |||||||||
CITGO Petroleum Corp., 7.00%, 06/15/25 (Call 06/15/22)(a) | USD | 100 | 92,760 | |||||||||
Clarios Global LP, 6.75%, 05/15/25 (Call 05/15/22)(a) | USD | 30 | 31,728 | |||||||||
Clarios Global LP/Clarios US Finance Co. | EUR | 100 | �� | 116,578 | ||||||||
6.25%, 05/15/26 (Call 05/15/22)(a) | USD | 175 | 182,385 | |||||||||
8.50%, 05/15/27 (Call 05/15/22)(a) | USD | 245 | 255,823 |
SCHEDULE OF INVESTMENTS | 51 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Clear Channel Worldwide Holdings Inc. | USD | 130 | $ | 126,457 | ||||||||
9.25%, 02/15/24 (Call 02/15/21) | USD | 214 | 185,377 | |||||||||
Clearway Energy Operating LLC | USD | 85 | 89,356 | |||||||||
5.75%, 10/15/25 (Call 10/15/21) | USD | 75 | 78,525 | |||||||||
Cleveland-Cliffs Inc. | USD | 50 | 49,946 | |||||||||
5.88%, 06/01/27 (Call 06/01/22) | USD | 50 | 48,413 | |||||||||
6.75%, 03/15/26 (Call 03/15/22)(a) | USD | 95 | 99,869 | |||||||||
9.88%, 10/17/25 (Call 10/17/22)(a) | USD | 129 | 147,544 | |||||||||
Colfax Corp. | EUR | 100 | 115,466 | |||||||||
6.00%, 02/15/24 (Call 02/15/21)(a) | USD | 175 | 182,037 | |||||||||
6.38%, 02/15/26 (Call 02/15/22)(a) | USD | 50 | 52,875 | |||||||||
CommScope Inc. | USD | 155 | 158,552 | |||||||||
6.00%, 03/01/26 (Call 03/01/22)(a) | USD | 90 | 93,160 | |||||||||
7.13%, 07/01/28 (Call 07/01/23)(a) | USD | 265 | 265,178 | |||||||||
8.25%, 03/01/27 (Call 03/01/22)(a)(b) | USD | 125 | 129,687 | |||||||||
CommScope Technologies LLC | USD | 90 | 84,095 | |||||||||
6.00%, 06/15/25 (Call 11/10/20)(a) | USD | 131 | 130,048 | |||||||||
Comstock Resources Inc. | USD | 80 | 79,413 | |||||||||
9.75%, 08/15/26 (Call 08/15/21) | USD | 100 | 105,437 | |||||||||
9.75%, 08/15/26 (Call 08/15/21) | USD | 70 | 73,806 | |||||||||
Consolidated Communications Inc., 6.50%, 10/01/28 (Call 10/01/23)(a)(b) | USD | 20 | 20,550 | |||||||||
Constellium SE, 6.63%, 03/01/25 (Call 11/30/20)(a) | USD | 250 | 254,111 | |||||||||
Continental Resources Inc./OK | USD | 150 | 139,687 | |||||||||
4.38%, 01/15/28 (Call 10/15/27)(b) | USD | 125 | 112,205 | |||||||||
4.50%, 04/15/23 (Call 01/15/23) | USD | 175 | 166,775 | |||||||||
Core & Main LP, 6.13%, 08/15/25 (Call 11/30/20)(a) | USD | 95 | 96,722 | |||||||||
Cornerstone Building Brands Inc. | USD | 20 | 20,456 | |||||||||
8.00%, 04/15/26 (Call 04/15/21)(a) | USD | 75 | 77,839 | |||||||||
Coty Inc., 4.75%, 04/15/26 (Call 04/15/21)(c) | EUR | 100 | 89,394 | |||||||||
Covanta Holding Corp. | USD | 35 | 35,406 | |||||||||
5.88%, 07/01/25 (Call 11/30/20) | USD | 50 | 51,938 | |||||||||
6.00%, 01/01/27 (Call 01/01/22)(b) | USD | 50 | 52,094 | |||||||||
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. | USD | 75 | 65,537 | |||||||||
5.75%, 04/01/25 (Call 11/30/20) | USD | 65 | 58,933 | |||||||||
6.25%, 04/01/23 (Call 11/16/20) | USD | 90 | 87,069 | |||||||||
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 01/15/23 | USD | 125 | 129,945 | |||||||||
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 09/30/26 (Call 03/31/26) | USD | 50 | 53,275 | |||||||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 02/01/26 (Call 02/01/21) | USD | 100 | 103,469 | |||||||||
Crown European Holdings SA | EUR | 100 | 113,265 | |||||||||
2.25%, 02/01/23 (Call 11/01/22)(c) | EUR | 100 | 117,193 | |||||||||
2.88%, 02/01/26 (Call 08/01/25)(c) | EUR | 100 | 121,412 | |||||||||
4.00%, 07/15/22 (Call 04/15/22)(c) | EUR | 100 | 120,221 | |||||||||
CrownRock LP/CrownRock Finance Inc., 5.63%, 10/15/25 (Call 11/30/20)(a) | USD | 150 | 147,375 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
CSC Holdings LLC | USD | 200 | $ | 202,499 | ||||||||
4.63%, 12/01/30 (Call 12/01/25)(a) | USD | 200 | 199,510 | |||||||||
5.25%, 06/01/24 | USD | 250 | 266,566 | |||||||||
5.38%, 02/01/28 (Call 02/01/23)(a)(b) | USD | 200 | 212,500 | |||||||||
5.50%, 05/15/26 (Call 05/15/21)(a) | USD | 200 | 208,100 | |||||||||
5.50%, 04/15/27 (Call 04/15/22)(a) | USD | 200 | 210,750 | |||||||||
5.75%, 01/15/30 (Call 01/15/25)(a) | USD | 200 | 213,162 | |||||||||
6.50%, 02/01/29 (Call 02/01/24)(a) | USD | 300 | 332,856 | |||||||||
6.75%, 11/15/21 | USD | 100 | 104,492 | |||||||||
7.50%, 04/01/28 (Call 04/01/23)(a) | USD | 200 | 218,819 | |||||||||
CVR Energy Inc. | USD | 75 | 54,563 | |||||||||
5.75%, 02/15/28 (Call 02/15/23)(a) | USD | 50 | 34,229 | |||||||||
Dana Financing Luxembourg Sarl, 5.75%, 04/15/25 (Call 11/30/20)(a) | USD | 50 | 51,625 | |||||||||
Dana Inc. | USD | 15 | 15,509 | |||||||||
5.50%, 12/15/24 (Call 11/30/20)(b) | USD | 55 | 55,951 | |||||||||
5.63%, 06/15/28 (Call 06/15/23) | USD | 85 | 89,143 | |||||||||
Darling Global Finance BV, 3.63%, 05/15/26 (Call 05/15/21)(c) | EUR | 100 | 118,236 | |||||||||
DaVita Inc. | USD | 155 | 148,994 | |||||||||
4.63%, 06/01/30 (Call 06/01/25)(a) | USD | 225 | 229,151 | |||||||||
DCP Midstream Operating LP | USD | 65 | 65,068 | |||||||||
4.75%, 09/30/21 (Call 06/30/21)(a) | USD | 65 | 65,228 | |||||||||
5.13%, 05/15/29 (Call 02/15/29) | USD | 100 | 99,400 | |||||||||
5.38%, 07/15/25 (Call 04/15/25) | USD | 105 | 110,250 | |||||||||
5.63%, 07/15/27 (Call 04/15/27) | USD | 25 | 26,000 | |||||||||
5.85%, 05/21/43 (Call 05/21/23)(a)(e) | USD | 65 | 47,860 | |||||||||
Dell International LLC/EMC Corp., 7.13%, 06/15/24 (Call 11/16/20)(a) | USD | 205 | 212,513 | |||||||||
Delta Air Lines Inc. | USD | 100 | 87,180 | |||||||||
3.75%, 10/28/29 (Call 07/28/29) | USD | 100 | 82,666 | |||||||||
3.80%, 04/19/23 (Call 03/19/23) | USD | 100 | 95,457 | |||||||||
4.38%, 04/19/28 (Call 01/19/28) | USD | 25 | 21,563 | |||||||||
7.38%, 01/15/26 (Call 12/15/25) | USD | 175 | 181,125 | |||||||||
Diamond Resorts International Inc. | USD | 65 | 61,556 | |||||||||
10.75%, 09/01/24 (Call 11/30/20)(a) | USD | 75 | 68,063 | |||||||||
Diamond Sports Group LLC/Diamond Sports Finance Co. | USD | 330 | 192,637 | |||||||||
6.63%, 08/15/27 (Call 08/15/22)(a)(b) | USD | 200 | 81,250 | |||||||||
Diebold Nixdorf Inc. | USD | 50 | 45,500 | |||||||||
9.38%, 07/15/25 (Call 07/15/22)(a) | USD | 95 | 100,700 | |||||||||
DISH DBS Corp. | USD | 190 | 190,990 | |||||||||
5.88%, 07/15/22 | USD | 225 | 231,268 | |||||||||
5.88%, 11/15/24 | USD | 300 | 302,062 | |||||||||
7.38%, 07/01/28 (Call 07/01/23) | USD | 80 | 80,400 | |||||||||
7.75%, 07/01/26(b) | USD | 250 | 265,625 | |||||||||
Diversified Healthcare Trust | USD | 65 | 57,688 | |||||||||
9.75%, 06/15/25 (Call 06/15/22) | USD | 135 | 148,669 |
52 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
DPL Inc. | USD | 50 | $ | 52,214 | ||||||||
4.35%, 04/15/29 (Call 01/15/29)(b) | USD | 50 | 54,250 | |||||||||
Edgewell Personal Care Co. | USD | 65 | 66,857 | |||||||||
5.50%, 06/01/28 (Call 06/01/23)(a) | USD | 80 | 84,200 | |||||||||
Elanco Animal Health Inc. | USD | 100 | 108,122 | |||||||||
5.90%, 08/28/28 (Call 05/28/28) | USD | 75 | 87,296 | |||||||||
EMC Corp., 3.38%, 06/01/23 (Call 03/01/23) | USD | 125 | 127,444 | |||||||||
Encompass Health Corp, 4.63%, 04/01/31 | USD | 15 | 15,431 | |||||||||
Encompass Health Corp. | USD | 80 | 82,100 | |||||||||
4.75%, 02/01/30 (Call 02/01/25) | USD | 80 | 82,800 | |||||||||
5.75%, 11/01/24 (Call 11/01/20)(b) | USD | 87 | 87,000 | |||||||||
Endeavor Energy Resources LP/EER Finance Inc. | USD | 90 | 90,800 | |||||||||
5.75%, 01/30/28 (Call 01/30/23)(a) | USD | 125 | 129,740 | |||||||||
6.63%, 07/15/25 (Call 07/15/22)(a) | USD | 60 | 62,475 | |||||||||
Endo Dac/Endo Finance LLC/Endo Finco Inc. | USD | 91 | 69,115 | |||||||||
9.50%, 07/31/27 (Call 07/31/23)(a)(b) | USD | 122 | 130,871 | |||||||||
Energizer Gamma Acquisition BV, 4.63%, 07/15/26 (Call 07/15/21)(c) | EUR | 100 | 119,005 | |||||||||
Energizer Holdings Inc. | USD | 55 | 55,550 | |||||||||
4.75%, 06/15/28 (Call 06/15/23)(a) | USD | 75 | 77,192 | |||||||||
7.75%, 01/15/27 (Call 01/15/22)(a) | USD | 115 | 124,430 | |||||||||
EnLink Midstream Partners LP | USD | 90 | 77,318 | |||||||||
4.40%, 04/01/24 (Call 01/01/24) | USD | 50 | 45,273 | |||||||||
4.85%, 07/15/26 (Call 04/15/26)(b) | USD | 65 | 55,556 | |||||||||
EQM Midstream Partners LP | USD | 100 | 97,018 | |||||||||
4.13%, 12/01/26 (Call 09/01/26) | USD | 50 | 47,485 | |||||||||
4.75%, 07/15/23 (Call 06/15/23) | USD | 125 | 124,270 | |||||||||
6.00%, 07/01/25 (Call 04/01/25)(a) | USD | 85 | 86,700 | |||||||||
6.50%, 07/01/27 (Call 01/01/27)(a) | USD | 125 | 131,276 | |||||||||
Series 10Y, 5.50%, 07/15/28 (Call 04/15/28) | USD | 100 | 101,488 | |||||||||
EQT Corp. | USD | 175 | 168,056 | |||||||||
7.88%, 02/01/25 (Call 01/01/25) | USD | 150 | 166,875 | |||||||||
8.75%, 02/01/30 (Call 11/01/29) | USD | 100 | 124,375 | |||||||||
ESH Hospitality Inc. | USD | 195 | 190,950 | |||||||||
5.25%, 05/01/25 (Call 11/30/20)(a) | USD | 140 | 140,024 | |||||||||
Exela Intermediate LLC/Exela Finance Inc., | USD | 125 | 36,860 | |||||||||
Ferrellgas LP/Ferrellgas Finance Corp. | USD | 60 | 55,000 | |||||||||
6.75%, 06/15/23 (Call 11/16/20) | USD | 60 | 53,950 | |||||||||
10.00%, 04/15/25 (Call 04/15/22)(a) | USD | 25 | 27,281 | |||||||||
Fifth Third Bancorp., Series H, 5.10%, | USD | 100 | 94,313 | |||||||||
Flex Acquisition Co. Inc. | USD | 80 | 78,331 | |||||||||
7.88%, 07/15/26 (Call 07/15/21)(a)(b) | USD | 65 | 65,839 | |||||||||
Fluor Corp. | EUR | 100 | 100,944 | |||||||||
3.50%, 12/15/24 (Call 09/15/24) | USD | 50 | 45,250 | |||||||||
4.25%, 09/15/28 (Call 06/15/28) | USD | 75 | 66,386 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Ford Credit Canada Co. | CAD | 100 | $ | 73,782 | ||||||||
4.46%, 11/13/24 | CAD | 50 | 37,031 | |||||||||
Ford Motor Co. | USD | 200 | 203,006 | |||||||||
8.50%, 04/21/23 | USD | 345 | 380,794 | |||||||||
9.00%, 04/22/25 (Call 03/22/25) | USD | 630 | 742,797 | |||||||||
9.63%, 04/22/30 (Call 01/22/30) | USD | 125 | 167,120 | |||||||||
Ford Motor Credit Co. LLC | EUR | 100 | 107,174 | |||||||||
1.51%, 02/17/23 | EUR | 200 | 224,245 | |||||||||
1.74%, 07/19/24 | EUR | 100 | 109,646 | |||||||||
2.33%, 11/25/25 | EUR | 100 | 110,372 | |||||||||
2.39%, 02/17/26 | EUR | 100 | 110,049 | |||||||||
3.25%, 09/15/25 | EUR | 100 | 114,555 | |||||||||
3.35%, 11/01/22 | USD | 200 | 199,250 | |||||||||
3.37%, 11/17/23 | USD | 200 | 197,793 | |||||||||
3.81%, 01/09/24 (Call 11/09/23) | USD | 200 | 199,762 | |||||||||
4.06%, 11/01/24 (Call 10/01/24) | USD | 200 | 200,560 | |||||||||
4.27%, 01/09/27 (Call 11/09/26) | USD | 200 | 198,981 | |||||||||
4.38%, 08/06/23(b) | USD | 400 | 408,040 | |||||||||
4.39%, 01/08/26 | USD | 200 | 200,984 | |||||||||
4.54%, 03/06/25 | GBP | 100 | 129,288 | |||||||||
5.11%, 05/03/29 (Call 02/03/29) | USD | 200 | 207,750 | |||||||||
5.13%, 06/16/25 (Call 05/16/25) | USD | 415 | 432,032 | |||||||||
Fortress Transportation & Infrastructure Investors LLC | USD | 55 | 53,845 | |||||||||
6.75%, 03/15/22 (Call 11/30/20)(a) | USD | 165 | 163,421 | |||||||||
9.75%, 08/01/27 (Call 08/01/23)(a) | USD | 40 | 42,550 | |||||||||
Freedom Mortgage Corp. | USD | 45 | 44,860 | |||||||||
8.13%, 11/15/24 (Call 11/30/20)(a) | USD | 80 | 80,641 | |||||||||
8.25%, 04/15/25 (Call 04/15/21)(a) | USD | 90 | 91,179 | |||||||||
Freeport-McMoRan Inc. | USD | 40 | 40,517 | |||||||||
3.88%, 03/15/23 (Call 12/15/22) | USD | 115 | 118,737 | |||||||||
4.13%, 03/01/28 (Call 03/01/23) | USD | 75 | 76,688 | |||||||||
4.25%, 03/01/30 (Call 03/01/25) | USD | 75 | 78,375 | |||||||||
4.38%, 08/01/28 (Call 08/01/23) | USD | 20 | 20,875 | |||||||||
4.55%, 11/14/24 (Call 08/14/24) | USD | 105 | 112,794 | |||||||||
4.63%, 08/01/30 (Call 08/01/25) | USD | 115 | 123,481 | |||||||||
5.00%, 09/01/27 (Call 09/01/22) | USD | 80 | 83,416 | |||||||||
5.25%, 09/01/29 (Call 09/01/24) | USD | 85 | 91,834 | |||||||||
Frontier Communications Corp. | USD | 10 | 10,232 | |||||||||
8.50%, 04/01/26 (Call 04/01/21)(a) | USD | 200 | 201,250 | |||||||||
FXI Holdings Inc. | USD | 64 | 59,878 | |||||||||
12.25%, 11/15/26 (Call 11/15/22)(a) | USD | 99 | 103,455 | |||||||||
Gap Inc. (The) | USD | 35 | 39,116 | |||||||||
8.63%, 05/15/25 (Call 05/15/22)(a) | USD | 90 | 99,018 | |||||||||
8.88%, 05/15/27 (Call 05/15/23)(a) | USD | 125 | 143,087 | |||||||||
Gartner Inc. | USD | 80 | 81,808 | |||||||||
4.50%, 07/01/28 (Call 07/01/23)(a) | USD | 175 | 182,801 | |||||||||
Genesis Energy LP/Genesis Energy Finance Corp. | USD | 50 | 40,219 | |||||||||
6.50%, 10/01/25 (Call 11/30/20) | USD | 70 | 58,316 | |||||||||
7.75%, 02/01/28 (Call 02/01/23) | USD | 95 | 78,850 |
SCHEDULE OF INVESTMENTS | 53 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Genworth Mortgage Holdings Inc., 6.50%, 08/15/25 (Call 02/15/25)(a) | USD | 80 | $ | 83,400 | ||||||||
Golden Nugget Inc. | USD | 165 | 139,923 | |||||||||
8.75%, 10/01/25 (Call 11/30/20)(a)(b) | USD | 85 | 69,647 | |||||||||
Goodyear Tire & Rubber Co. (The) | USD | 90 | 87,525 | |||||||||
5.00%, 05/31/26 (Call 05/31/21) | USD | 115 | 113,528 | |||||||||
5.13%, 11/15/23 (Call 11/30/20) | USD | 75 | 74,506 | |||||||||
9.50%, 05/31/25 (Call 05/31/22) | USD | 105 | 115,292 | |||||||||
Graphic Packaging International LLC, 3.50%, 03/15/28(a) | USD | 100 | 99,906 | |||||||||
Gray Television Inc. | USD | 100 | 98,187 | |||||||||
5.88%, 07/15/26 (Call 07/15/21)(a) | USD | 115 | 119,533 | |||||||||
7.00%, 05/15/27 (Call 05/15/22)(a) | USD | 90 | 96,989 | |||||||||
Griffon Corp., 5.75%, 03/01/28 (Call 03/01/23) | USD | 130 | 136,337 | |||||||||
Gulfport Energy Corp. | USD | 80 | 44,067 | |||||||||
6.38%, 05/15/25 (Call 11/30/20) | USD | 50 | 27,493 | |||||||||
Hanesbrands Finance Luxembourg SCA, 3.50%, 06/15/24 (Call 03/15/24)(c) | EUR | 100 | 120,137 | |||||||||
Hanesbrands Inc. | USD | 115 | 119,778 | |||||||||
4.88%, 05/15/26 (Call 02/15/26)(a)(b) | USD | 115 | 123,165 | |||||||||
5.38%, 05/15/25 (Call 05/15/22)(a) | USD | 30 | 31,538 | |||||||||
HCA Inc. | USD | 315 | 321,694 | |||||||||
5.38%, 02/01/25 | USD | 275 | 304,989 | |||||||||
5.38%, 09/01/26 (Call 03/01/26)(b) | USD | 125 | 140,469 | |||||||||
5.63%, 09/01/28 (Call 03/01/28) | USD | 215 | 250,475 | |||||||||
5.88%, 05/01/23 | USD | 100 | 108,596 | |||||||||
5.88%, 02/15/26 (Call 08/15/25) | USD | 215 | 242,950 | |||||||||
5.88%, 02/01/29 (Call 08/01/28) | USD | 125 | 146,862 | |||||||||
Herbalife Nutrition Ltd./HLF Financing Inc., | USD | 155 | 164,346 | |||||||||
Herc Holdings Inc., 5.50%, 07/15/27 (Call 07/15/22)(a) | USD | 150 | 154,050 | |||||||||
Hess Midstream Operations LP | USD | 70 | 69,405 | |||||||||
5.63%, 02/15/26 (Call 02/15/21)(a) | USD | 100 | 100,000 | |||||||||
Hilcorp Energy I LP/Hilcorp Finance Co. | USD | 65 | 59,658 | |||||||||
5.75%, 10/01/25 (Call 11/30/20)(a) | USD | 65 | 59,881 | |||||||||
6.25%, 11/01/28 (Call 11/01/23)(a) | USD | 75 | 68,589 | |||||||||
Hilton Domestic Operating Co. Inc. | USD | 125 | 124,625 | |||||||||
4.88%, 01/15/30 (Call 01/15/25) | USD | 180 | 185,625 | |||||||||
5.13%, 05/01/26 (Call 05/01/21) | USD | 165 | 168,027 | |||||||||
5.38%, 05/01/25 (Call 05/01/22)(a) | USD | 10 | 10,339 | |||||||||
5.75%, 05/01/28 (Call 05/01/23)(a) | USD | 65 | 68,255 | |||||||||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. | USD | 100 | 100,926 | |||||||||
4.88%, 04/01/27 (Call 04/01/22) | USD | 75 | 75,749 | |||||||||
Hologic Inc. | USD | 75 | 75,473 | |||||||||
4.63%, 02/01/28 (Call 02/01/23)(a) | USD | 50 | 52,250 | |||||||||
Howard Hughes Corp. (The) | USD | 125 | 125,391 | |||||||||
5.38%, 08/01/28 (Call 08/01/23)(a) | USD | 90 | 90,900 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Howmet Aerospace Inc. | USD | 155 | $ | 163,106 | ||||||||
6.88%, 05/01/25 (Call 04/01/25) | USD | 180 | 200,250 | |||||||||
HUB International Ltd., 7.00%, 05/01/26 (Call 05/01/21)(a) | USD | 175 | 179,375 | |||||||||
Hughes Satellite Systems Corp. | USD | 95 | 102,115 | |||||||||
6.63%, 08/01/26 | USD | 100 | 108,750 | |||||||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | USD | 125 | 127,187 | |||||||||
5.25%, 05/15/27 (Call 11/15/26) | USD | 122 | 126,246 | |||||||||
6.25%, 05/15/26 (Call 05/15/22) | USD | 130 | 134,875 | |||||||||
6.38%, 12/15/25 (Call 12/15/20) | USD | 95 | 97,375 | |||||||||
6.75%, 02/01/24 (Call 11/30/20)(b) | USD | 65 | 66,482 | |||||||||
iHeartCommunications Inc. | USD | 65 | 62,180 | |||||||||
5.25%, 08/15/27 (Call 08/15/22)(a) | USD | 95 | 93,975 | |||||||||
6.38%, 05/01/26 (Call 05/01/22)(b) | USD | 100 | 104,125 | |||||||||
8.38%, 05/01/27 (Call 05/01/22) | USD | 180 | 175,545 | |||||||||
International Game Technology PLC | EUR | 100 | 101,965 | |||||||||
3.50%, 06/15/26 (Call 06/15/22)(c) | EUR | 150 | 164,775 | |||||||||
6.25%, 01/15/27 (Call 07/15/26)(a) | USD | 100 | 106,250 | |||||||||
6.50%, 02/15/25 (Call 08/15/24)(a) | USD | 200 | 213,091 | |||||||||
Intrado Corp., 8.50%, 10/15/25 (Call 11/30/20)(a) | USD | 145 | 130,549 | |||||||||
IQVIA Inc. | EUR | 100 | 114,461 | |||||||||
2.88%, 06/15/28 (Call 06/15/23)(c) | EUR | 100 | 117,514 | |||||||||
3.25%, 03/15/25 (Call 11/30/20)(c) | EUR | 200 | 233,773 | |||||||||
5.00%, 05/15/27 (Call 05/15/22)(a) | USD | 200 | 209,614 | |||||||||
IRB Holding Corp. | USD | 50 | 50,205 | |||||||||
7.00%, 06/15/25 (Call 06/15/22)(a) | USD | 100 | 106,501 | |||||||||
Iron Mountain Inc. | USD | 60 | 59,601 | |||||||||
4.88%, 09/15/27 (Call 09/15/22)(a) | USD | 125 | 127,121 | |||||||||
4.88%, 09/15/29 (Call 09/15/24)(a) | USD | 125 | 125,671 | |||||||||
5.00%, 07/15/28 (Call 07/15/23)(a)(b) | USD | 80 | 81,381 | |||||||||
5.25%, 03/15/28 (Call 12/27/22)(a) | USD | 105 | 107,530 | |||||||||
5.25%, 07/15/30 (Call 07/15/25)(a) | USD | 165 | 169,125 | |||||||||
5.63%, 07/15/32 (Call 07/15/26)(a) | USD | 75 | 77,625 | |||||||||
Iron Mountain UK PLC, 3.88%, 11/15/25 | GBP | 100 | 129,911 | |||||||||
iStar Inc. | USD | 70 | 64,384 | |||||||||
4.75%, 10/01/24 (Call 07/01/24) | USD | 100 | 95,583 | |||||||||
5.50%, 02/15/26 (Call 08/15/22) | USD | 50 | 47,151 | |||||||||
Jaguar Holding Co. II/PPD Development LP | USD | 20 | 20,675 | |||||||||
5.00%, 06/15/28 (Call 06/15/23)(a) | USD | 100 | 103,981 | |||||||||
Jeld-Wen Inc. | USD | 50 | 50,567 | |||||||||
4.88%, 12/15/27 (Call 12/15/22)(a) | USD | 50 | 51,490 | |||||||||
KB Home, 7.00%, 12/15/21 (Call 09/15/21) | USD | 55 | 57,229 | |||||||||
Kennedy-Wilson Inc., 5.88%, 04/01/24 (Call 11/30/20) | USD | 150 | 146,550 | |||||||||
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC | USD | 100 | 103,674 | |||||||||
5.25%, 06/01/26 (Call 06/01/21)(a) | USD | 80 | 82,700 | |||||||||
Kraft Heinz Foods Co. | EUR | 100 | 119,961 | |||||||||
2.25%, 05/25/28 (Call 02/25/28)(c) | EUR | 150 | 180,788 |
54 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
3.00%, 06/01/26 (Call 03/01/26) | USD | 250 | $ | 254,752 | ||||||||
3.75%, 04/01/30 (Call 01/01/30)(a) | USD | 150 | 157,687 | |||||||||
3.88%, 05/15/27 (Call 02/15/27)(a) | USD | 155 | 163,672 | |||||||||
3.95%, 07/15/25 (Call 04/15/25) | USD | 175 | 189,168 | |||||||||
4.13%, 07/01/27 (Call 04/01/27)(c) | GBP | 100 | 141,506 | |||||||||
4.25%, 03/01/31 (Call 12/01/30)(a) | USD | 165 | 178,363 | |||||||||
4.63%, 01/30/29 (Call 10/30/28) | USD | 150 | 166,822 | |||||||||
L Brands Inc. | USD | 115 | 113,012 | |||||||||
6.63%, 10/01/30 (Call 10/01/25)(a) | USD | 110 | 115,500 | |||||||||
6.88%, 07/01/25 (Call 07/01/22)(a) | USD | 10 | 10,725 | |||||||||
7.50%, 06/15/29 (Call 06/15/24) | USD | 65 | 69,713 | |||||||||
9.38%, 07/01/25(a) | USD | 10 | 11,600 | |||||||||
LABL Escrow Issuer LLC | USD | 90 | 94,353 | |||||||||
10.50%, 07/15/27 (Call 07/15/22)(a)(b) | USD | 85 | 90,525 | |||||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. | USD | 110 | 94,737 | |||||||||
5.25%, 03/15/22 (Call 09/15/21)(a) | USD | 65 | 63,136 | |||||||||
5.25%, 10/01/25 (Call 11/16/20)(a) | USD | 60 | 54,750 | |||||||||
Lamar Media Corp. | USD | 75 | 74,672 | |||||||||
4.00%, 02/15/30 (Call 02/15/25) | USD | 60 | 60,600 | |||||||||
4.88%, 01/15/29 (Call 01/15/24) | USD | 115 | 119,600 | |||||||||
5.75%, 02/01/26 (Call 02/01/21) | USD | 80 | 82,776 | |||||||||
Lamb Weston Holdings Inc. | USD | 100 | 103,625 | |||||||||
4.88%, 11/01/26 (Call 11/01/21)(a) | USD | 100 | 103,750 | |||||||||
4.88%, 05/15/28 (Call 11/15/27)(a) | USD | 60 | 65,085 | |||||||||
Laredo Petroleum Inc. | USD | 75 | 34,781 | |||||||||
10.13%, 01/15/28 (Call 01/15/23) | USD | 50 | 21,375 | |||||||||
LCPR Senior Secured Financing DAC, 6.75%, 10/15/27 (Call 10/15/22)(a) | USD | 200 | 212,520 | |||||||||
Legacy LifePoint Health LLC | USD | 135 | 133,611 | |||||||||
6.75%, 04/15/25 (Call 04/15/22)(a) | USD | 35 | 37,100 | |||||||||
Lennar Corp. | USD | 75 | 76,781 | |||||||||
4.50%, 04/30/24 (Call 01/31/24) | USD | 80 | 86,210 | |||||||||
4.75%, 11/15/22 (Call 08/15/22) | USD | 25 | 26,304 | |||||||||
4.75%, 05/30/25 (Call 02/28/25) | USD | 65 | 71,436 | |||||||||
4.75%, 11/29/27 (Call 05/29/27) | USD | 90 | 102,805 | |||||||||
4.88%, 12/15/23 (Call 09/15/23) | USD | 55 | 59,579 | |||||||||
5.88%, 11/15/24 (Call 05/15/24) | USD | 105 | 118,041 | |||||||||
Level 3 Financing Inc. | USD | 105 | 101,955 | |||||||||
4.25%, 07/01/28 (Call 07/01/23)(a) | USD | 125 | 125,967 | |||||||||
4.63%, 09/15/27 (Call 09/15/22)(a) | USD | 125 | 127,546 | |||||||||
5.25%, 03/15/26 (Call 03/15/21) | USD | 100 | 103,365 | |||||||||
5.38%, 01/15/24 (Call 11/30/20) | USD | 115 | 115,829 | |||||||||
5.38%, 05/01/25 (Call 11/30/20) | USD | 75 | 77,090 | |||||||||
Levi Strauss & Co. | EUR | 100 | 118,415 | |||||||||
5.00%, 05/01/25 (Call 11/30/20) | USD | 45 | 46,097 | |||||||||
Liberty Mutual Group Inc., 3.63%, 05/23/59 (Call 05/23/24)(c)(e) | EUR | 100 | 114,648 | |||||||||
Lions Gate Capital Holdings LLC 5.88%, 11/01/24 (Call 11/30/20)(a) | USD | 60 | 56,625 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
6.38%, 02/01/24 (Call 02/01/21)(a) | USD | 65 | $ | 62,210 | ||||||||
Lithia Motors Inc., 4.38%, 01/15/31 (Call 10/15/25)(a) | USD | 15 | 15,510 | |||||||||
Live Nation Entertainment Inc. | USD | 175 | 161,219 | |||||||||
6.50%, 05/15/27 (Call 05/15/23)(a) | USD | 160 | 172,116 | |||||||||
LKQ European Holdings BV, 4.13%, 04/01/28 (Call 04/01/23)(c) | EUR | 100 | 124,528 | |||||||||
LKQ Italia Bondco SpA, 3.88%, 04/01/24 (Call 01/01/24)(c) | EUR | 100 | 123,300 | |||||||||
LPL Holdings Inc. | USD | 50 | 51,250 | |||||||||
5.75%, 09/15/25 (Call 11/10/20)(a) | USD | 115 | 119,065 | |||||||||
Macy’s Inc., 8.38%, 06/15/25 (Call 06/15/22)(a) | USD | 175 | 182,656 | |||||||||
Macy’s Retail Holdings LLC, 3.63%, 06/01/24 (Call 03/01/24)(b) | USD | 100 | 76,553 | |||||||||
Mallinckrodt International Finance SA/Mallinckrodt CB LLC | USD | 65 | 21,125 | |||||||||
5.75%, 08/01/22 (Call 11/30/20)(a)(f) | USD | 75 | 25,092 | |||||||||
Marriott Ownership Resorts Inc., 6.13%, 09/15/25 (Call 05/15/22)(a) | USD | 15 | 15,638 | |||||||||
Marriott Ownership Resorts Inc./ILG LLC, 6.50%, 09/15/26 (Call 09/15/21) | USD | 100 | 103,000 | |||||||||
Matador Resources Co., 5.88%, 09/15/26 (Call 09/15/21) | USD | 130 | 105,137 | |||||||||
Match Group Holdings II LLC | USD | 115 | 117,678 | |||||||||
4.63%, 06/01/28 (Call 06/01/23)(a) | USD | 10 | 10,354 | |||||||||
5.00%, 12/15/27 (Call 12/15/22)(a) | USD | 75 | 77,903 | |||||||||
Mattel Inc. | USD | 110 | 119,371 | |||||||||
6.75%, 12/31/25 (Call 12/31/20)(a) | USD | 190 | 199,500 | |||||||||
Mauser Packaging Solutions Holding Co. | EUR | 100 | 114,388 | |||||||||
5.50%, 04/15/24 (Call 11/30/20)(a) | USD | 185 | 184,910 | |||||||||
7.25%, 04/15/25 (Call 11/30/20)(a)(b) | USD | 170 | 163,466 | |||||||||
MEDNAX Inc. | USD | 100 | 101,020 | |||||||||
6.25%, 01/15/27 (Call 01/15/22)(a)(b) | USD | 125 | 129,025 | |||||||||
Mercer International Inc., 7.38%, 01/15/25 (Call 01/15/21) | USD | 75 | 76,313 | |||||||||
Meredith Corp., 6.88%, 02/01/26 | USD | 160 | 132,400 | |||||||||
Meritage Homes Corp., 6.00%, 06/01/25 | USD | 50 | 56,310 | |||||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc. | USD | 65 | 66,352 | |||||||||
4.63%, 06/15/25 (Call 03/15/25)(a) | USD | 145 | 147,460 | |||||||||
5.63%, 05/01/24 (Call 02/01/24) | USD | 130 | 136,727 | |||||||||
5.75%, 02/01/27 (Call 11/01/26) | USD | 95 | 102,362 | |||||||||
MGM Resorts International | USD | 62 | 61,012 | |||||||||
4.75%, 10/15/28 (Call 07/15/28) | USD | 90 | 87,975 | |||||||||
5.50%, 04/15/27 (Call 01/15/27) | USD | 111 | 112,240 | |||||||||
5.75%, 06/15/25 (Call 03/15/25) | USD | 165 | 171,757 | |||||||||
6.00%, 03/15/23 | USD | 155 | 160,592 | |||||||||
6.75%, 05/01/25 (Call 05/01/22) | USD | 50 | 52,595 | |||||||||
7.75%, 03/15/22 | USD | 125 | 131,447 | |||||||||
Microchip Technology Inc., 4.25%, 09/01/25 (Call 09/01/22)(a) | USD | 155 | 160,231 | |||||||||
Molina Healthcare Inc. | USD | 80 | 82,000 | |||||||||
5.38%, 11/15/22 (Call 08/15/22) | USD | 90 | 93,735 |
SCHEDULE OF INVESTMENTS | 55 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Moss Creek Resources Holdings Inc., 10.50%, 05/15/27 (Call 05/15/22)(a) | USD | 65 | $ | 33,479 | ||||||||
MPH Acquisition Holdings LLC, 5.75%, 11/01/28 (Call 11/01/23)(a) | USD | 130 | 127,725 | |||||||||
MPT Operating Partnership LP/MPT Finance Corp. | GBP | 100 | 130,750 | |||||||||
4.00%, 08/19/22 (Call 05/19/22) | EUR | 100 | 120,903 | |||||||||
4.63%, 08/01/29 (Call 08/01/24)(b) | USD | 90 | 94,762 | |||||||||
5.00%, 10/15/27 (Call 10/15/22) | USD | 175 | 182,709 | |||||||||
5.25%, 08/01/26 (Call 08/01/21) | USD | 65 | 67,002 | |||||||||
6.38%, 03/01/24 (Call 11/30/20) | USD | 65 | 66,401 | |||||||||
MSCI Inc. | USD | 40 | 41,070 | |||||||||
3.88%, 02/15/31 (Call 06/01/25)(a) | USD | 150 | 156,750 | |||||||||
4.00%, 11/15/29 (Call 11/15/24)(a) | USD | 100 | 104,285 | |||||||||
4.75%, 08/01/26 (Call 08/01/21)(a) | USD | 65 | 67,301 | |||||||||
5.38%, 05/15/27 (Call 05/15/22)(a) | USD | 65 | 69,296 | |||||||||
Murphy Oil Corp. | USD | 75 | 61,604 | |||||||||
5.88%, 12/01/27 (Call 12/01/22) | USD | 55 | 43,451 | |||||||||
6.88%, 08/15/24 (Call 11/30/20) | USD | 50 | 44,085 | |||||||||
Nabors Industries Inc., 5.75%, 02/01/25 (Call 11/01/24) | USD | 100 | 27,500 | |||||||||
Nabors Industries Ltd. | USD | 50 | 19,650 | |||||||||
7.50%, 01/15/28 (Call 01/15/23)(a) | USD | 50 | 20,000 | |||||||||
Nationstar Mortgage Holdings Inc. | USD | 75 | 74,641 | |||||||||
6.00%, 01/15/27 (Call 01/15/23)(a) | USD | 110 | 110,000 | |||||||||
9.13%, 07/15/26 (Call 07/15/21)(a) | USD | 120 | 128,206 | |||||||||
Navient Corp. | USD | 65 | 60,635 | |||||||||
5.50%, 01/25/23 | USD | 150 | 149,344 | |||||||||
5.88%, 10/25/24 | USD | 65 | 64,449 | |||||||||
6.13%, 03/25/24 | USD | 105 | 106,126 | |||||||||
6.50%, 06/15/22 | USD | 100 | 102,615 | |||||||||
6.75%, 06/25/25 | USD | 65 | 65,802 | |||||||||
6.75%, 06/15/26 | USD | 65 | 65,343 | |||||||||
7.25%, 01/25/22 | USD | 45 | 46,381 | |||||||||
7.25%, 09/25/23 | USD | 65 | 68,331 | |||||||||
Navistar International Corp. | USD | 140 | 144,753 | |||||||||
9.50%, 05/01/25 (Call 05/01/22)(a) | USD | 80 | 88,650 | |||||||||
NCL Corp. Ltd. | USD | 85 | 87,077 | |||||||||
12.25%, 05/15/24 (Call 02/15/24)(a)(b) | USD | 115 | 126,911 | |||||||||
NCR Corp. | USD | 95 | 94,129 | |||||||||
5.25%, 10/01/30 (Call 10/01/25)(a) | USD | 20 | 19,882 | |||||||||
5.75%, 09/01/27 (Call 09/01/22)(a) | USD | 65 | 66,788 | |||||||||
6.13%, 09/01/29 (Call 09/01/24)(a)(b) | USD | 65 | 68,331 | |||||||||
8.13%, 04/15/25 (Call 04/15/22)(a) | USD | 25 | 27,226 | |||||||||
Netflix Inc. | EUR | 100 | 120,874 | |||||||||
3.63%, 06/15/25 (Call 03/15/25)(a) | USD | 25 | 26,181 | |||||||||
3.63%, 05/15/27 | EUR | 100 | 125,691 | |||||||||
3.63%, 06/15/30 (Call 03/15/30)(c) | EUR | 200 | 253,748 | |||||||||
3.88%, 11/15/29(c) | EUR | 100 | 128,992 | |||||||||
4.38%, 11/15/26(b) | USD | 125 | 135,920 | |||||||||
4.63%, 05/15/29 | EUR | 100 | 135,169 | |||||||||
4.88%, 04/15/28 | USD | 175 | 196,822 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
4.88%, 06/15/30 (Call 03/15/30)(a) | USD | 125 | $ | 142,969 | ||||||||
5.38%, 11/15/29(a) | USD | 90 | 105,345 | |||||||||
5.50%, 02/15/22 | USD | 75 | 78,802 | |||||||||
5.75%, 03/01/24(b) | USD | 50 | 55,375 | |||||||||
5.88%, 02/15/25 | USD | 100 | 112,726 | |||||||||
5.88%, 11/15/28 | USD | 190 | 227,350 | |||||||||
6.38%, 05/15/29 | USD | 100 | 123,000 | |||||||||
New Fortress Energy Inc., | USD | 100 | 102,729 | |||||||||
Newell Brands Inc. | USD | 100 | 104,497 | |||||||||
4.70%, 04/01/26 (Call 01/01/26) | USD | 250 | 266,250 | |||||||||
4.88%, 06/01/25 (Call 05/01/25) | USD | 90 | 97,200 | |||||||||
Nexstar Broadcasting Inc. | USD | 50 | 50,417 | |||||||||
5.63%, 07/15/27 (Call 07/15/22)(a) | USD | 250 | 260,625 | |||||||||
NextEra Energy Operating Partners LP | USD | 65 | 67,419 | |||||||||
4.25%, 07/15/24 (Call 04/15/24)(a) | USD | 45 | 46,952 | |||||||||
4.25%, 09/15/24 (Call 07/15/24)(a) | USD | 95 | 98,824 | |||||||||
4.50%, 09/15/27 (Call 06/15/27)(a)(b) | USD | 65 | 70,999 | |||||||||
NFP Corp., 6.88%, 08/15/28 (Call 08/15/23)(a) | USD | 180 | 175,086 | |||||||||
NGL Energy Partners LP/NGL Energy Finance Corp. | USD | 80 | 43,200 | |||||||||
7.50%, 04/15/26 (Call 04/15/22) | USD | 70 | 34,650 | |||||||||
Nielsen Co Luxembourg Sarl (The), | USD | 65 | 66,768 | |||||||||
Nielsen Finance LLC/Nielsen Finance Co. | USD | 86 | 86,107 | |||||||||
5.63%, 10/01/28 (Call 10/01/23)(a) | USD | 120 | 124,050 | |||||||||
5.88%, 10/01/30 (Call 10/01/25)(a) | USD | 70 | 73,409 | |||||||||
NortonLifeLock Inc. | USD | 50 | 50,995 | |||||||||
5.00%, 04/15/25 (Call 11/10/20)(a) | USD | 140 | 142,584 | |||||||||
Novelis Corp. | USD | 220 | 223,380 | |||||||||
5.88%, 09/30/26 (Call 09/30/21)(a) | USD | 190 | 196,057 | |||||||||
NRG Energy Inc. | USD | 90 | 97,537 | |||||||||
5.75%, 01/15/28 (Call 01/15/23) | USD | 105 | 112,867 | |||||||||
6.63%, 01/15/27 (Call 07/15/21) | USD | 155 | 163,137 | |||||||||
7.25%, 05/15/26 (Call 05/15/21) | USD | 125 | 131,874 | |||||||||
NuStar Logistics LP | USD | 65 | 63,355 | |||||||||
5.75%, 10/01/25 (Call 07/01/25) | USD | 85 | 85,349 | |||||||||
6.00%, 06/01/26 (Call 03/01/26) | USD | 90 | 89,212 | |||||||||
6.38%, 10/01/30 (Call 04/01/30) | USD | 30 | 30,162 | |||||||||
Occidental Petroleum Corp. | USD | 25 | 22,375 | |||||||||
2.90%, 08/15/24 (Call 07/15/24) | USD | 275 | 229,020 | |||||||||
3.20%, 08/15/26 (Call 06/15/26) | USD | 150 | 116,062 | |||||||||
3.40%, 04/15/26 (Call 01/15/26) | USD | 150 | 117,327 | |||||||||
3.50%, 06/15/25 (Call 03/15/25) | USD | 100 | 80,470 | |||||||||
3.50%, 08/15/29 (Call 05/15/29) | USD | 200 | 144,292 | |||||||||
5.55%, 03/15/26 (Call 12/15/25) | USD | 200 | 174,400 | |||||||||
5.88%, 09/01/25 (Call 06/01/25)(b) | USD | 85 | 74,800 | |||||||||
6.38%, 09/01/28 (Call 03/01/28)(b) | USD | 90 | 78,236 | |||||||||
6.63%, 09/01/30 (Call 03/01/30) | USD | 140 | 122,927 | |||||||||
7.50%, 05/01/31 | USD | 100 | 91,250 | |||||||||
7.88%, 09/15/31 | USD | 50 | 45,865 |
56 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
8.00%, 07/15/25 (Call 04/15/25)(b) | USD | 155 | $ | 151,125 | ||||||||
8.50%, 07/15/27 (Call 01/15/27) | USD | 190 | 181,962 | |||||||||
8.88%, 07/15/30 (Call 01/15/30) | USD | 100 | 98,000 | |||||||||
OI European Group BV, 3.13%, 11/15/24 (Call 08/15/24)(c) | EUR | 100 | 116,291 | |||||||||
Olin Corp. | USD | 65 | 65,406 | |||||||||
5.13%, 09/15/27 (Call 03/15/22) | USD | 90 | 91,842 | |||||||||
5.63%, 08/01/29 (Call 08/01/24) | USD | 95 | 97,858 | |||||||||
9.50%, 06/01/25 (Call 03/01/25)(a) | USD | 40 | 47,292 | |||||||||
OneMain Finance Corp. | USD | 100 | 102,910 | |||||||||
5.63%, 03/15/23 | USD | 100 | 104,125 | |||||||||
6.13%, 05/15/22 | USD | 75 | 78,409 | |||||||||
6.13%, 03/15/24 (Call 09/15/23) | USD | 165 | 173,655 | |||||||||
6.63%, 01/15/28 (Call 07/15/27) | USD | 100 | 109,375 | |||||||||
6.88%, 03/15/25 | USD | 155 | 170,407 | |||||||||
7.13%, 03/15/26 | USD | 175 | 194,103 | |||||||||
8.88%, 06/01/25 (Call 06/01/22) | USD | 75 | 82,250 | |||||||||
Ortho-Clinical Diagnostics Inc./Ortho-Clinical Diagnostics SA | USD | 125 | 130,562 | |||||||||
7.38%, 06/01/25 (Call 06/01/22)(a) | USD | 45 | 47,144 | |||||||||
Outfront Media Capital LLC/Outfront Media Capital Corp. | USD | 65 | 59,800 | |||||||||
5.00%, 08/15/27 (Call 08/15/22)(a) | USD | 80 | 76,000 | |||||||||
5.63%, 02/15/24 (Call 11/30/20) | USD | 50 | 50,797 | |||||||||
6.25%, 06/15/25 (Call 06/15/22)(a) | USD | 80 | 81,550 | |||||||||
Owens-Brockway Glass Container Inc. | USD | 90 | 94,635 | |||||||||
6.63%, 05/13/27 (Call 05/15/23)(a) | USD | 90 | 96,525 | |||||||||
Par Pharmaceutical Inc., 7.50%, 04/01/27 | USD | 351 | 372,060 | |||||||||
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, 5.88%, 10/01/28 (Call 10/01/23)(a) | USD | 80 | 78,560 | |||||||||
Parsley Energy LLC/Parsley Finance Corp. | USD | 50 | 52,153 | |||||||||
5.25%, 08/15/25 (Call 11/30/20)(a) | USD | 55 | 56,581 | |||||||||
5.38%, 01/15/25 (Call 11/30/20)(a) | USD | 85 | 86,759 | |||||||||
5.63%, 10/15/27 (Call 10/15/22)(a) | USD | 65 | 69,144 | |||||||||
PBF Holding Co. LLC/PBF Finance Corp. | USD | 110 | 41,731 | |||||||||
7.25%, 06/15/25 (Call 11/30/20) | USD | 75 | 31,125 | |||||||||
9.25%, 05/15/25 (Call 05/15/22)(a) | USD | 115 | 101,898 | |||||||||
PDC Energy Inc. | USD | 125 | 117,812 | |||||||||
6.13%, 09/15/24 (Call 11/30/20) | USD | 50 | 47,800 | |||||||||
Penske Automotive Group Inc. | USD | 70 | 70,175 | |||||||||
5.50%, 05/15/26 (Call 05/15/21) | USD | 60 | 61,845 | |||||||||
Performance Food Group Inc., 5.50%, 10/15/27 (Call 10/15/22)(a) | USD | 135 | 138,337 | |||||||||
PetSmart Inc. | USD | 167 | 169,897 | |||||||||
7.13%, 03/15/23 (Call 11/30/20)(a) | USD | 190 | 189,050 | |||||||||
8.88%, 06/01/25 (Call 11/10/20)(a) | USD | 80 | 80,776 | |||||||||
PG&E Corp. | USD | 100 | 100,135 | |||||||||
5.25%, 07/01/30 (Call 07/01/25) | USD | 145 | 145,000 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Photo Holdings Merger Sub Inc., | USD | 100 | $ | 92,689 | ||||||||
Picasso Finance Sub Inc., 6.13%, 06/15/25 | USD | 45 | 47,363 | |||||||||
Pilgrim’s Pride Corp. | USD | 125 | 127,969 | |||||||||
5.88%, 09/30/27 (Call 09/30/22)(a) | USD | 80 | 84,610 | |||||||||
Post Holdings Inc. | USD | 205 | 210,637 | |||||||||
5.00%, 08/15/26 (Call 08/15/21)(a)(b) | USD | 115 | 118,963 | |||||||||
5.50%, 12/15/29 (Call 12/15/24)(a) | USD | 95 | 102,719 | |||||||||
5.63%, 01/15/28 (Call 12/01/22)(a) | USD | 120 | 126,200 | |||||||||
5.75%, 03/01/27 (Call 03/01/22)(a) | USD | 165 | 172,165 | |||||||||
Prestige Brands Inc. | USD | 50 | 52,063 | |||||||||
6.38%, 03/01/24 (Call 11/30/20)(a) | USD | 75 | 76,500 | |||||||||
Prime Security Services Borrower LLC/Prime Finance Inc. | USD | 95 | 91,443 | |||||||||
5.25%, 04/15/24(a)(b) | USD | 95 | 99,263 | |||||||||
5.75%, 04/15/26(a) | USD | 160 | 170,400 | |||||||||
6.25%, 01/15/28 (Call 01/15/23)(a) | USD | 135 | 136,179 | |||||||||
Primo Water Corp., 3.88%, 10/31/28 (Call 10/31/23)(c) | EUR | 100 | 114,687 | |||||||||
PTC Inc. | USD | 90 | 91,258 | |||||||||
4.00%, 02/15/28 (Call 02/15/23)(a) | USD | 65 | 67,113 | |||||||||
PulteGroup Inc. | USD | 75 | 85,768 | |||||||||
5.50%, 03/01/26 (Call 12/01/25) | USD | 40 | 46,100 | |||||||||
QEP Resources Inc. | USD | 75 | 58,875 | |||||||||
5.38%, 10/01/22 (Call 07/01/22) | USD | 65 | 55,819 | |||||||||
5.63%, 03/01/26 (Call 12/01/25) | USD | 65 | 41,275 | |||||||||
Qorvo Inc. | USD | 35 | 35,263 | |||||||||
4.38%, 10/15/29 (Call 10/15/24) | USD | 150 | 160,513 | |||||||||
Quicken Loans LLC, 5.25%, 01/15/28 (Call 01/15/23)(a) | USD | 125 | 130,970 | |||||||||
Quicken Loans LLC/Quicken Loans Co-Issuer Inc. | USD | 45 | 44,274 | |||||||||
3.88%, 03/01/31 (Call 03/01/26)(a) | USD | 180 | 177,079 | |||||||||
QVC Inc. | USD | 70 | 72,538 | |||||||||
4.38%, 09/01/28 (Call 06/01/28) | USD | 65 | 65,130 | |||||||||
4.45%, 02/15/25 (Call 11/15/24) | USD | 75 | 77,580 | |||||||||
4.75%, 02/15/27 (Call 11/15/26) | USD | 70 | 71,553 | |||||||||
4.85%, 04/01/24(b) | USD | 75 | 77,780 | |||||||||
Qwest Corp., 6.75%, 12/01/21 | USD | 120 | 126,000 | |||||||||
Radian Group Inc. | USD | 75 | 76,125 | |||||||||
4.88%, 03/15/27 (Call 09/15/26) | USD | 50 | 51,114 | |||||||||
6.63%, 03/15/25 (Call 09/15/24) | USD | 95 | 103,283 | |||||||||
Radiate Holdco LLC/Radiate Finance Inc. | USD | 90 | 90,328 | |||||||||
6.50%, 09/15/28 (Call 09/15/23)(a)(b) | USD | 80 | 82,500 | |||||||||
Range Resources Corp. | USD | 95 | 88,350 | |||||||||
5.00%, 08/15/22 (Call 05/15/22) | USD | 40 | 40,000 | |||||||||
5.00%, 03/15/23 (Call 12/15/22)(b) | USD | 90 | 87,320 | |||||||||
9.25%, 02/01/26 (Call 02/01/22)(a) | USD | 85 | 90,100 | |||||||||
Realogy Group LLC/Realogy Co-Issuer Corp. | USD | 50 | 49,875 |
SCHEDULE OF INVESTMENTS | 57 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
7.63%, 06/15/25 (Call 06/15/22)(a) | USD | 90 | $ | 95,062 | ||||||||
9.38%, 04/01/27 (Call 04/01/22)(a) | USD | 65 | 68,981 | |||||||||
Refinitiv U.S. Holdings Inc. | EUR | 200 | 243,272 | |||||||||
6.25%, 05/15/26 (Call 11/15/21)(a) | USD | 155 | 165,560 | |||||||||
8.25%, 11/15/26 (Call 11/15/21)(a) | USD | 200 | 217,700 | |||||||||
RegionalCare Hospital Partners Holdings Inc./LifePoint Health Inc., 9.75%, 12/01/26 (Call 12/01/21)(a) | USD | 180 | 193,950 | |||||||||
Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu | USD | 125 | 126,427 | |||||||||
5.13%, 07/15/23 (Call 11/30/20)(a)(b) | USD | 8 | 8,100 | |||||||||
RHP Hotel Properties LP/RHP Finance Corp., 4.75%, 10/15/27 (Call 10/15/22) | USD | 105 | 96,075 | |||||||||
Rite Aid Corp. | USD | 77 | 77,000 | |||||||||
8.00%, 11/15/26 (Call 01/15/23)(a) | USD | 114 | 114,285 | |||||||||
Rockies Express Pipeline LLC, 4.95%, 07/15/29 (Call 04/15/29)(a) | USD | 50 | 49,326 | |||||||||
Royal Caribbean Cruises Ltd., | USD | 115 | 120,031 | |||||||||
Sabre GLBL Inc. | USD | 100 | 98,375 | |||||||||
7.38%, 09/01/25 (Call 09/01/22)(a) | USD | 80 | 81,744 | |||||||||
9.25%, 04/15/25 (Call 03/16/25)(a)(b) | USD | 90 | 99,675 | |||||||||
Sally Holdings LLC/Sally Capital Inc., 5.63%, 12/01/25 (Call 12/01/20)(b) | USD | 50 | 49,550 | |||||||||
SBA Communications Corp. | USD | 200 | 203,500 | |||||||||
4.00%, 10/01/22 (Call 11/30/20) | USD | 95 | 95,745 | |||||||||
4.88%, 09/01/24 (Call 11/30/20) | USD | 140 | 143,451 | |||||||||
Scientific Games International Inc. | EUR | 100 | 109,350 | |||||||||
5.00%, 10/15/25 (Call 11/30/20)(a) | USD | 155 | 155,581 | |||||||||
7.00%, 05/15/28 (Call 05/15/23)(a) | USD | 85 | 84,469 | |||||||||
7.25%, 11/15/29 (Call 11/15/24)(a) | USD | 65 | 64,532 | |||||||||
8.25%, 03/15/26 (Call 03/15/22)(a) | USD | 135 | 137,065 | |||||||||
8.63%, 07/01/25 (Call 07/01/22)(a) | USD | 60 | 62,096 | |||||||||
Sealed Air Corp. | USD | 55 | 57,613 | |||||||||
4.88%, 12/01/22 (Call 09/01/22)(a) | USD | 55 | 57,570 | |||||||||
5.13%, 12/01/24 (Call 09/01/24)(a) | USD | 30 | 32,738 | |||||||||
5.25%, 04/01/23 (Call 01/01/23)(a) | USD | 50 | 52,813 | |||||||||
5.50%, 09/15/25 (Call 06/15/25)(a) | USD | 50 | 55,719 | |||||||||
Select Medical Corp., 6.25%, 08/15/26 (Call 08/15/22)(a)(b) | USD | 205 | 216,086 | |||||||||
Sensata Technologies Inc. | USD | 30 | 29,700 | |||||||||
4.38%, 02/15/30 (Call 11/15/29)(a) | USD | 55 | 57,750 | |||||||||
Service Corp. International/U.S. | USD | 75 | 75,938 | |||||||||
4.63%, 12/15/27 (Call 12/15/22) | �� | USD | 75 | 79,313 | ||||||||
5.13%, 06/01/29 (Call 06/01/24) | USD | 100 | 109,250 | |||||||||
Service Properties Trust | USD | 50 | 39,100 | |||||||||
4.35%, 10/01/24 (Call 09/01/24) | USD | 100 | 88,343 | |||||||||
4.38%, 02/15/30 (Call 08/15/29)(b) | USD | 50 | 40,906 | |||||||||
4.75%, 10/01/26 (Call 08/01/26) | USD | 50 | 42,925 | |||||||||
4.95%, 02/15/27 (Call 08/15/26)(b) | USD | 25 | 21,151 | |||||||||
4.95%, 10/01/29 (Call 07/01/29) | USD | 50 | 40,972 | |||||||||
7.50%, 09/15/25 (Call 06/15/25) | USD | 90 | 94,117 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Signature Aviation U.S. Holdings Inc. | USD | 80 | $ | 77,500 | ||||||||
5.38%, 05/01/26 (Call 05/01/21)(a) | USD | 65 | 65,894 | |||||||||
Silgan Holdings Inc., 3.25%, 03/15/25 (Call 11/30/20) | EUR | 100 | 117,046 | |||||||||
Sinclair Television Group Inc. | USD | 75 | 70,688 | |||||||||
5.50%, 03/01/30 (Call 12/01/24)(a) | USD | 65 | 61,116 | |||||||||
5.63%, 08/01/24 (Call 11/16/20)(a) | USD | 70 | 69,814 | |||||||||
Sirius XM Radio Inc. | USD | 170 | 174,916 | |||||||||
4.63%, 07/15/24 (Call 07/15/21)(a) | USD | 190 | 195,928 | |||||||||
5.00%, 08/01/27 (Call 08/01/22)(a) | USD | 190 | 199,122 | |||||||||
5.38%, 07/15/26 (Call 07/15/21)(a)(b) | USD | 225 | 234,328 | |||||||||
5.50%, 07/01/29 (Call 07/01/24)(a) | USD | 155 | 168,741 | |||||||||
Six Flags Entertainment Corp. | USD | 125 | 116,198 | |||||||||
5.50%, 04/15/27 (Call 04/15/22)(a)(b) | USD | 65 | 60,470 | |||||||||
Six Flags Theme Parks Inc., 7.00%, 07/01/25 (Call 07/01/22)(a) | USD | 35 | 37,056 | |||||||||
SM Energy Co., 10.00%, 01/15/25 (Call 06/17/22)(a) | USD | 205 | 195,711 | |||||||||
Solera LLC/Solera Finance Inc., 10.50%, 03/01/24 (Call 11/30/20)(a) | USD | 230 | 238,912 | |||||||||
Southwestern Energy Co. | USD | 115 | 115,431 | |||||||||
7.50%, 04/01/26 (Call 04/01/21) | USD | 80 | 81,400 | |||||||||
7.75%, 10/01/27 (Call 10/01/22)(b) | USD | 40 | 41,350 | |||||||||
Spectrum Brands Inc. | EUR | 100 | 118,303 | |||||||||
5.75%, 07/15/25 (Call 11/30/20) | USD | 125 | 128,750 | |||||||||
Spirit AeroSystems Inc. | USD | 75 | 62,423 | |||||||||
5.50%, 01/15/25 (Call 10/15/22)(a)(b) | USD | 15 | 15,249 | |||||||||
7.50%, 04/15/25 (Call 04/15/22)(a) | USD | 150 | 151,500 | |||||||||
Sprint Communications Inc. | USD | 285 | 305,055 | |||||||||
11.50%, 11/15/21 | USD | 50 | 54,447 | |||||||||
Sprint Corp. | USD | 290 | 333,061 | |||||||||
7.63%, 02/15/25 (Call 11/15/24) | USD | 190 | 224,200 | |||||||||
7.63%, 03/01/26 (Call 11/01/25) | USD | 165 | 200,681 | |||||||||
7.88%, 09/15/23 | USD | 485 | 553,506 | |||||||||
SS&C Technologies Inc., 5.50%, 09/30/27 | USD | 275 | 292,187 | |||||||||
SSL Robotics LLC, 9.75%, 12/31/23 (Call 12/15/21)(a) | USD | 125 | 138,750 | |||||||||
Standard Industries Inc./NJ | EUR | 100 | 114,554 | |||||||||
3.38%, 01/15/31 (Call 07/15/25)(a) | USD | 60 | 58,475 | |||||||||
4.38%, 07/15/30 (Call 07/15/25)(a) | USD | 160 | 164,890 | |||||||||
4.75%, 01/15/28 (Call 01/15/23)(a) | USD | 175 | 182,875 | |||||||||
5.00%, 02/15/27 (Call 02/15/22)(a)(b) | USD | 85 | 87,869 | |||||||||
Staples Inc. | USD | 250 | 233,750 | |||||||||
10.75%, 04/15/27 (Call 04/15/22)(a) | USD | 125 | 99,320 | |||||||||
Starwood Property Trust Inc. | USD | 65 | 63,214 | |||||||||
5.00%, 12/15/21 (Call 09/15/21) | USD | 90 | 89,775 | |||||||||
Station Casinos LLC, 4.50%, 02/15/28 (Call 02/15/23)(a) | USD | 125 | 117,891 | |||||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.50%, 06/01/24 (Call 11/30/20) | USD | 75 | 75,821 | |||||||||
Summit Materials LLC/Summit Materials Finance Corp., 5.25%, 01/15/29 (Call 07/15/23)(a) | USD | 65 | 66,950 |
58 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Sunoco LP/Sunoco Finance Corp. | USD | 125 | $ | 125,594 | ||||||||
5.50%, 02/15/26 (Call 02/15/21) | USD | 100 | 100,230 | |||||||||
5.88%, 03/15/28 (Call 03/15/23) | USD | 50 | 51,875 | |||||||||
6.00%, 04/15/27 (Call 04/15/22) | USD | 75 | 77,622 | |||||||||
Talen Energy Supply LLC | USD | 70 | 41,941 | |||||||||
6.63%, 01/15/28 (Call 01/15/23)(a) | USD | 85 | 81,246 | |||||||||
7.25%, 05/15/27 (Call 05/15/22)(a) | USD | 95 | 94,881 | |||||||||
7.63%, 06/01/28 (Call 06/01/23)(a) | USD | 15 | 14,738 | |||||||||
10.50%, 01/15/26 (Call 01/15/22)(a) | USD | 75 | 50,805 | |||||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. | USD | 65 | 62,075 | |||||||||
5.50%, 09/15/24 (Call 11/30/20)(a) | USD | 90 | 86,196 | |||||||||
5.50%, 01/15/28 (Call 01/15/23)(a) | USD | 95 | 87,381 | |||||||||
6.00%, 03/01/27 (Call 03/01/23)(a) | USD | 55 | 51,810 | |||||||||
7.50%, 10/01/25 (Call 10/01/22)(a) | USD | 50 | 50,500 | |||||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | USD | 75 | 75,094 | |||||||||
4.88%, 02/01/31 (Call 02/01/26)(a) | USD | 100 | 97,552 | |||||||||
5.00%, 01/15/28 (Call 01/15/23) | USD | 90 | 88,687 | |||||||||
5.13%, 02/01/25 (Call 11/30/20) | USD | 50 | 50,125 | |||||||||
5.25%, 05/01/23 (Call 11/02/20) | USD | 25 | 25,000 | |||||||||
5.38%, 02/01/27 (Call 02/01/22) | USD | 65 | 65,325 | |||||||||
5.50%, 03/01/30 (Call 03/01/25)(a) | USD | 100 | 100,325 | |||||||||
5.88%, 04/15/26 (Call 04/15/21) | USD | 125 | 127,812 | |||||||||
6.50%, 07/15/27 (Call 07/15/22) | USD | 95 | 100,139 | |||||||||
6.88%, 01/15/29 (Call 01/15/24) | USD | 50 | 53,592 | |||||||||
Taylor Morrison Communities Inc. | USD | 75 | 81,379 | |||||||||
5.75%, 01/15/28 (Call 10/15/27)(a) | USD | 55 | 60,924 | |||||||||
5.88%, 06/15/27 (Call 03/15/27)(a) | USD | 65 | 72,136 | |||||||||
TEGNA Inc. | USD | 100 | 98,733 | |||||||||
4.75%, 03/15/26 (Call 03/15/23)(a)(b) | USD | 30 | 30,818 | |||||||||
5.00%, 09/15/29 (Call 09/15/24) | USD | 145 | 146,812 | |||||||||
Teleflex Inc., 4.25%, 06/01/28 (Call 06/01/23)(a) | USD | 110 | 115,034 | |||||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75%, 06/01/25 (Call 11/10/20)(a) | USD | 125 | 127,000 | |||||||||
Tempur Sealy International Inc. | USD | 75 | 77,999 | |||||||||
5.63%, 10/15/23 (Call 11/30/20) | USD | 55 | 55,679 | |||||||||
Tenet Healthcare Corp. | USD | 235 | 239,060 | |||||||||
4.63%, 09/01/24 (Call 09/01/21)(a) | USD | 75 | 76,665 | |||||||||
4.63%, 06/15/28 (Call 06/15/23)(a) | USD | 65 | 65,813 | |||||||||
4.88%, 01/01/26 (Call 03/01/22)(a) | USD | 265 | 269,153 | |||||||||
5.13%, 05/01/25 (Call 11/30/20) | USD | 175 | 173,416 | |||||||||
5.13%, 11/01/27 (Call 11/01/22)(a) | USD | 285 | 293,464 | |||||||||
6.13%, 10/01/28 (Call 10/01/23)(a) | USD | 225 | 217,650 | |||||||||
6.25%, 02/01/27 (Call 02/01/22)(a) | USD | 210 | 218,074 | |||||||||
6.75%, 06/15/23(b) | USD | 185 | 194,446 | |||||||||
7.00%, 08/01/25 (Call 11/30/20)(b) | USD | 60 | 61,300 | |||||||||
7.50%, 04/01/25 (Call 04/01/22)(a) | USD | 25 | 26,930 | |||||||||
Tenneco Inc., 5.00%, 07/15/24 | EUR | 100 | 108,647 | |||||||||
TerraForm Power Operating LLC | USD | 65 | 66,300 | |||||||||
4.75%, 01/15/30 (Call 01/15/25)(a) | USD | 85 | 91,179 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
5.00%, 01/31/28 (Call 07/31/27)(a) | USD | 75 | $ | 82,478 | ||||||||
Terrier Media Buyer Inc., 8.88%, 12/15/27 (Call 12/15/22)(a) | USD | 105 | 107,533 | |||||||||
Tesla Inc., 5.30%, 08/15/25 (Call 11/30/20)(a) | USD | 225 | 232,932 | |||||||||
T-Mobile USA Inc. | USD | 65 | 67,246 | |||||||||
4.50%, 02/01/26 (Call 02/01/21) | USD | 225 | 230,231 | |||||||||
4.75%, 02/01/28 (Call 02/01/23) | USD | 190 | 203,205 | |||||||||
5.13%, 04/15/25 (Call 11/10/20) | USD | 65 | 66,503 | |||||||||
5.38%, 04/15/27 (Call 04/15/22) | USD | 65 | 69,388 | |||||||||
6.00%, 04/15/24 (Call 11/10/20) | USD | 125 | 127,212 | |||||||||
6.50%, 01/15/26 (Call 01/15/21) | USD | 100 | 103,875 | |||||||||
Toll Brothers Finance Corp. | USD | 50 | 53,305 | |||||||||
4.35%, 02/15/28 (Call 11/15/27)(b) | USD | 50 | 54,766 | |||||||||
4.38%, 04/15/23 (Call 01/15/23) | USD | 25 | 26,241 | |||||||||
4.88%, 03/15/27 (Call 12/15/26) | USD | 55 | 61,785 | |||||||||
5.88%, 02/15/22 (Call 11/15/21) | USD | 50 | 51,938 | |||||||||
TransDigm Inc. | USD | 335 | 326,346 | |||||||||
6.25%, 03/15/26 (Call 03/15/22)(a) | USD | 505 | 525,200 | |||||||||
6.38%, 06/15/26 (Call 06/15/21) | USD | 145 | 144,594 | |||||||||
6.50%, 07/15/24 (Call 11/30/20) | USD | 150 | 150,021 | |||||||||
6.50%, 05/15/25 (Call 11/30/20) | USD | 95 | 95,000 | |||||||||
7.50%, 03/15/27 (Call 03/15/22) | USD | 75 | 77,430 | |||||||||
8.00%, 12/15/25 (Call 04/08/22)(a) | USD | 105 | 113,694 | |||||||||
Transocean Guardian Ltd., | USD | 78 | 47,580 | |||||||||
Transocean Inc., 11.50%, 01/30/27 (Call 07/30/23)(a) | USD | 50 | 16,530 | |||||||||
Transocean Pontus Ltd., 6.13%, 08/01/25 | USD | 136 | 120,177 | |||||||||
Transocean Poseidon Ltd., 6.88%, 02/01/27 (Call 02/01/22)(a) | USD | 70 | 52,763 | |||||||||
Transocean Proteus Ltd., 6.25%, 12/01/24 | USD | 49 | 43,144 | |||||||||
TreeHouse Foods Inc., 4.00%, 09/01/28 (Call 09/01/23) | USD | 70 | 69,947 | |||||||||
TRI Pointe Group Inc./TRI Pointe Homes Inc., 5.88%, 06/15/24 | USD | 50 | 54,250 | |||||||||
Triumph Group Inc. | USD | 50 | 43,250 | |||||||||
7.75%, 08/15/25 (Call 11/30/20)(b) | USD | 67 | 43,617 | |||||||||
8.88%, 06/01/24 (Call 02/01/23)(a) | USD | 43 | 45,630 | |||||||||
Tronox Finance PLC, 5.75%, 10/01/25 (Call 11/30/20)(a) | USD | 80 | 79,886 | |||||||||
Tronox Inc. | USD | 60 | 63,223 | |||||||||
6.50%, 04/15/26 (Call 04/15/21)(a) | USD | 75 | 76,163 | |||||||||
U.S. Foods Inc., 6.25%, 04/15/25 | USD | 135 | 140,625 | |||||||||
U.S. Steel Corp. | USD | 80 | 60,400 | |||||||||
6.88%, 08/15/25 (Call 11/30/20)(b) | USD | 95 | 75,430 | |||||||||
Uber Technologies Inc. | USD | 50 | 50,651 | |||||||||
7.50%, 05/15/25 (Call 05/15/22)(a) | USD | 115 | 120,606 | |||||||||
7.50%, 09/15/27 (Call 09/15/22)(a) | USD | 150 | 156,787 | |||||||||
8.00%, 11/01/26 (Call 11/01/21)(a) | USD | 165 | 173,869 | |||||||||
UGI International LLC, 3.25%, 11/01/25 (Call 11/01/21)(c) | EUR | 100 | 118,494 | |||||||||
United Airlines Holdings Inc., 4.25%, 10/01/22(b) | USD | 50 | 45,447 | |||||||||
United Rentals North America Inc. | USD | 108 | 112,172 | |||||||||
3.88%, 02/15/31 (Call 08/15/25) | USD | 125 | 126,230 | |||||||||
4.00%, 07/15/30 (Call 07/15/25) | USD | 95 | 96,909 |
SCHEDULE OF INVESTMENTS | 59 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
4.88%, 01/15/28 (Call 01/15/23) | USD | 135 | $ | 141,750 | ||||||||
5.25%, 01/15/30 (Call 01/15/25) | USD | 75 | 81,281 | |||||||||
5.50%, 05/15/27 (Call 05/15/22) | USD | 125 | 132,969 | |||||||||
5.88%, 09/15/26 (Call 09/15/21) | USD | 125 | 131,530 | |||||||||
United States Steel Corp., 12.00%, 06/01/25 (Call 06/01/22)(a) | USD | 120 | 133,200 | |||||||||
Uniti Group LP/Uniti Fiber Holdings Inc./CSL Capital LLC | USD | 100 | 95,614 | |||||||||
7.88%, 02/15/25 (Call 02/15/22)(a) | USD | 235 | 249,103 | |||||||||
Uniti Group LP/Uniti Group Finance Inc./CSL Capital LLC | USD | 70 | 70,963 | |||||||||
8.25%, 10/15/23 (Call 11/30/20) | USD | 140 | 137,789 | |||||||||
Univision Communications Inc. | USD | 185 | 181,925 | |||||||||
6.63%, 06/01/27 (Call 06/01/23)(a) | USD | 190 | 191,561 | |||||||||
USA Compression Partners LP/USA Compression Finance Corp. | USD | 115 | 114,230 | |||||||||
6.88%, 09/01/27 (Call 09/01/22) | USD | 70 | 70,365 | |||||||||
Valvoline Inc., 4.25%, 02/15/30 | USD | 85 | 86,507 | |||||||||
Vector Group Ltd. | USD | 105 | 104,974 | |||||||||
10.50%, 11/01/26 (Call 11/01/21)(a) | USD | 70 | 72,100 | |||||||||
Vericast Corp. | USD | 100 | 98,500 | |||||||||
9.25%, 03/01/21 (Call 11/27/20)(a) | USD | 33 | 33,062 | |||||||||
VeriSign Inc. | USD | 100 | 101,037 | |||||||||
4.75%, 07/15/27 (Call 07/15/22) | USD | 70 | 73,940 | |||||||||
5.25%, 04/01/25 (Call 01/01/25) | USD | 65 | 72,868 | |||||||||
Veritas U.S. Inc./Veritas Bermuda Ltd., 7.50%, 09/01/25 (Call 09/01/21)(a) | USD | 240 | 243,365 | |||||||||
Verscend Escrow Corp., 9.75%, 08/15/26 | USD | 140 | 150,310 | |||||||||
ViacomCBS Inc. | USD | 105 | 105,940 | |||||||||
6.25%, 02/28/57 (Call 02/28/27)(e) | USD | 80 | 87,094 | |||||||||
ViaSat Inc. | USD | 90 | 90,535 | |||||||||
5.63%, 04/15/27 (Call 04/15/22)(a) | USD | 75 | 78,563 | |||||||||
6.50%, 07/15/28 (Call 07/15/23)(a) | USD | 30 | 30,788 | |||||||||
VICI Properties LP/VICI Note Co. Inc. | USD | 100 | 100,059 | |||||||||
3.75%, 02/15/27 (Call 02/15/23)(a) | USD | 145 | 145,362 | |||||||||
4.13%, 08/15/30 (Call 02/15/25)(a) | USD | 125 | 126,562 | |||||||||
4.25%, 12/01/26 (Call 12/01/22)(a) | USD | 125 | 127,344 | |||||||||
4.63%, 12/01/29 (Call 12/01/24)(a) | USD | 125 | 130,087 | |||||||||
Viking Cruises Ltd. | USD | 105 | 81,239 | |||||||||
13.00%, 05/15/25 (Call 05/15/22)(a) | USD | 90 | 101,475 | |||||||||
Vistra Operations Co. LLC | USD | 155 | 161,975 | |||||||||
5.50%, 09/01/26 (Call 09/01/21)(a) | USD | 150 | 155,467 | |||||||||
5.63%, 02/15/27 (Call 02/15/22)(a) | USD | 195 | 203,681 | |||||||||
VOC Escrow Ltd., 5.00%, 02/15/28 (Call 02/15/23)(a) | USD | 85 | 73,844 | |||||||||
Weatherford International Ltd., 11.00%, 12/01/24 (Call 12/01/21)(a) | USD | 240 | 141,900 | |||||||||
WESCO Distribution Inc. | USD | 80 | 86,354 | |||||||||
7.25%, 06/15/28 (Call 06/15/23)(a) | USD | 205 | 224,475 | |||||||||
Western Digital Corp., 4.75%, 02/15/26 (Call 11/15/25)(b) | USD | 240 | 258,042 |
Security | Par (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Western Midstream Operating LP | USD | 50 | $ | 45,984 | ||||||||
4.10%, 02/01/25 (Call 01/01/25) | USD | 125 | 118,480 | |||||||||
4.50%, 03/01/28 (Call 12/01/27) | USD | 50 | 46,519 | |||||||||
4.65%, 07/01/26 (Call 04/01/26) | USD | 50 | 47,996 | |||||||||
4.75%, 08/15/28 (Call 05/15/28) | USD | 50 | 46,170 | |||||||||
5.05%, 02/01/30 (Call 11/01/29) | USD | 150 | 143,053 | |||||||||
William Carter Co. (The) | USD | 90 | 94,756 | |||||||||
5.63%, 03/15/27 (Call 03/15/22)(a) | USD | 75 | 78,891 | |||||||||
Williams Scotsman International Inc., 4.63%, 08/15/28 (Call 08/15/23)(a) | USD | 55 | 55,481 | |||||||||
Windstream Escrow LLC/Windstream Escrow Finance Corp., 7.75%, 08/15/28 (Call 08/15/23)(a) | USD | 155 | 149,575 | |||||||||
WMG Acquisition Corp. | EUR | 100 | 116,275 | |||||||||
3.00%, 02/15/31 (Call 02/15/26)(a) | USD | 40 | 38,200 | |||||||||
Wolverine Escrow LLC | USD | 75 | 58,123 | |||||||||
9.00%, 11/15/26 (Call 11/15/22)(a) | USD | 115 | 87,940 | |||||||||
13.13%, 11/15/27 (Call 11/15/22)(a)(b) | USD | 40 | 27,450 | |||||||||
WPX Energy Inc. | USD | 100 | 96,000 | |||||||||
5.25%, 09/15/24 (Call 06/15/24) | USD | 80 | 83,100 | |||||||||
5.25%, 10/15/27 (Call 10/15/22) | USD | 90 | 90,007 | |||||||||
5.75%, 06/01/26 (Call 06/01/21) | USD | 65 | 66,788 | |||||||||
5.88%, 06/15/28 (Call 06/15/23) | USD | 12 | 12,302 | |||||||||
WR Grace & Co-Conn, 4.88%, 06/15/27 | USD | 120 | 125,161 | |||||||||
Wyndham Destinations Inc. | USD | 238 | 232,280 | |||||||||
4.25%, 03/01/22 (Call 12/01/21) | USD | 81 | 81,203 | |||||||||
6.00%, 04/01/27 (Call 01/01/27) | USD | 50 | 51,655 | |||||||||
6.63%, 07/31/26 (Call 04/30/26)(a) | USD | 35 | 37,282 | |||||||||
Wyndham Hotels & Resorts Inc., 4.38%, 08/15/28 (Call 08/15/23)(a) | USD | 70 | 69,574 | |||||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. | USD | 65 | 61,994 | |||||||||
5.25%, 05/15/27 (Call 02/15/27)(a)(b) | USD | 130 | 120,900 | |||||||||
5.50%, 03/01/25 (Call 12/01/24)(a) | USD | 225 | 215,437 | |||||||||
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. | USD | 100 | 95,687 | |||||||||
7.75%, 04/15/25 (Call 04/15/22)(a)(b) | USD | 100 | 104,705 | |||||||||
Xerox Corp., 4.38%, 03/15/23 (Call 02/15/23) | USD | 175 | 182,346 | |||||||||
Xerox Holdings Corp. | USD | 75 | 73,766 | |||||||||
5.50%, 08/15/28 (Call 07/15/28)(a) | USD | 65 | 63,878 | |||||||||
XPO Logistics Inc. | USD | 65 | 65,975 | |||||||||
6.25%, 05/01/25 (Call 05/01/22)(a) | USD | 200 | 212,564 | |||||||||
6.50%, 06/15/22 (Call 11/30/20)(a) | USD | 150 | 150,553 | |||||||||
6.75%, 08/15/24 (Call 08/15/21)(a) | USD | 125 | 132,275 | |||||||||
Yum! Brands Inc. | USD | 110 | 107,937 | |||||||||
4.75%, 01/15/30 (Call 10/15/29)(a) | USD | 125 | 133,969 | |||||||||
7.75%, 04/01/25 (Call 04/01/22)(a) | USD | 60 | 65,838 |
60 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF (Percentages shown are based on Net Assets) |
Security | Par/ Shares (000) | Value | ||||||||||
United States (continued) | ||||||||||||
Zayo Group Holdings Inc. | USD | 205 | $ | 201,002 | ||||||||
6.13%, 03/01/28 (Call 03/01/23)(a) | USD | 140 | 141,342 | |||||||||
|
| |||||||||||
116,448,948 | ||||||||||||
|
| |||||||||||
Total Corporate Bonds & Notes — 97.3% |
| 172,045,054 | ||||||||||
|
| |||||||||||
Floating Rate Loan Interests |
| |||||||||||
United States — 0.1% | ||||||||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 2020 2nd Lien Term Loan, 1.00%, 11/01/25 | $ | 84 | 88,305 | |||||||||
|
| |||||||||||
Total Floating Rate Loan Interests — 0.1% |
| 88,305 | ||||||||||
|
| |||||||||||
Common Stocks | ||||||||||||
Germany — 0.0% | ||||||||||||
Whiting Petroleum Corp.(i) | 2 | 31,054 | ||||||||||
|
| |||||||||||
United States — 0.0% | ||||||||||||
AMC Entertainment Inc.(i)(j) | 1 | 1,834 | ||||||||||
|
| |||||||||||
Total Common Stocks — 0.0% | 32,888 | |||||||||||
|
| |||||||||||
Warrants | ||||||||||||
United States — 0.0% | ||||||||||||
Sable Permian Resources Land LLC, (Expires 10/16/24)(i)(j) | 0 | (k) | 0 | (g) | ||||||||
SM Energy Co., (Expires 6/30/23)(i) | 5 | 7,872 | ||||||||||
|
| |||||||||||
7,872 | ||||||||||||
|
| |||||||||||
Total Warrants — 0.0% | 7,872 | |||||||||||
|
| |||||||||||
Short-Term Investments | ||||||||||||
Money Market Funds — 8.0% | ||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.20%(l)(m)(n) | 11,545 | 11,552,610 |
Security |
Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.04%(l)(m) | 2,600 | $ | 2,600,000 | |||||
|
| |||||||
14,152,610 | ||||||||
|
| |||||||
Total Short-Term Investments — 8.0% | 14,152,610 | |||||||
|
| |||||||
Total Investments in Securities — 105.4% | 186,326,729 | |||||||
Other Assets, Less Liabilities — (5.4)% | (9,475,696 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 176,851,033 | ||||||
|
|
(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) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(d) | Perpetual security with no stated maturity date. |
(e) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(f) | Issuer filed for bankruptcy and/or is in default. |
(g) | Rounds to less than $1. |
(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) | Non-income producing security. |
(j) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(k) | Rounds to less than 1,000. |
(l) | Affiliate of the Fund. |
(m) | Annualized 7-day yield as of period-end. |
(n) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 10/31/19 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 10/31/20 | Shares Held at 10/31/20 (000) | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 20,908,212 | $ | — | $ | (9,352,713 | )(a) | $ | 2,614 | $ | (5,503 | ) | $ | 11,552,610 | 11,545 | $ | 84,786 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,846,000 | — | (246,000 | )(a) | — | — | 2,600,000 | 2,600 | 7,407 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 2,614 | $ | (5,503 | ) | $ | 14,152,610 | $ | 92,193 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
SCHEDULE OF INVESTMENTS | 61 |
Schedule of Investments (continued) October 31, 2020 | iShares® US & Intl High Yield Corp Bond ETF |
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, 2020. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Corporate Bonds & Notes | $ | — | $ | 172,045,054 | $ | — | $ | 172,045,054 | ||||||||
Floating Rate Loan Interests | — | 88,305 | — | 88,305 | ||||||||||||
Common Stocks | 31,054 | — | 1,834 | 32,888 | ||||||||||||
Warrants | — | 7,872 | 0 | (a) | 7,872 | |||||||||||
Money Market Funds | 14,152,610 | — | — | 14,152,610 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 14,183,664 | $ | 172,141,231 | $ | 1,834 | $ | 186,326,729 | |||||||||
|
|
|
|
|
|
|
|
(a) | Rounds to less than $1. |
See notes to financial statements.
62 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Statements of Assets and Liabilities
October 31, 2020
iShares High Yield Bond ETF | iShares J.P. Morgan EM Corporate Bond ETF | iShares J.P. Morgan EM High Yield Bond ETF | iShares J.P. Morgan EM Local Currency Bond ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 45,292,614 | $ | 211,606,521 | $ | 296,707,192 | $ | 491,323,580 | ||||||||
Affiliated(c) | 40,000 | 14,130,871 | 21,368,777 | 290,000 | ||||||||||||
Cash | 3,714 | 26,062 | 1,640 | 8,168 | ||||||||||||
Foreign currency, at value(d) | 739,977 | — | — | 2,784,753 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 1,796,026 | 3,328,427 | 5,288,229 | 8,755,909 | ||||||||||||
Securities lending income — Affiliated | — | 3,813 | 6,812 | — | ||||||||||||
Capital shares sold | — | 1,447,838 | — | 1,342,763 | ||||||||||||
Dividends | — | 93 | 182 | 973 | ||||||||||||
Interest | 584,165 | 2,341,716 | 4,467,445 | 8,460,111 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 48,456,496 | 232,885,341 | 327,840,277 | 512,966,257 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | — | 11,552,663 | 17,267,882 | — | ||||||||||||
Deferred foreign capital gain tax | — | — | — | 442,842 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 1,690,213 | 6,512,403 | 6,866,400 | 12,301,231 | ||||||||||||
Investment advisory fees | 16,097 | 88,804 | 121,968 | 121,733 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 1,706,310 | 18,153,870 | 24,256,250 | 12,865,806 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 46,750,186 | $ | 214,731,471 | $ | 303,584,027 | $ | 500,100,451 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 52,183,798 | $ | 214,103,654 | $ | 379,101,097 | $ | 559,119,503 | ||||||||
Accumulated earnings (loss) | (5,433,612 | ) | 627,817 | (75,517,070 | ) | (59,019,052 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 46,750,186 | $ | 214,731,471 | $ | 303,584,027 | $ | 500,100,451 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 900,000 | 4,200,000 | 7,050,000 | 12,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 51.94 | $ | 51.13 | $ | 43.06 | $ | 41.68 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | 500 million | 500 million | 500 million | 500 million | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | — | $ | 10,910,473 | $ | 16,556,663 | $ | — | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 46,213,949 | $ | 209,511,020 | $ | 320,236,576 | $ | 512,300,598 | ||||||||
(c) Investments, at cost — Affiliated | $ | 40,000 | $ | 14,122,412 | $ | 21,370,592 | $ | 290,000 | ||||||||
(d) Foreign currency, at cost | $ | 740,805 | $ | — | $ | — | $ | 2,818,325 |
See notes to financial statements.
FINANCIAL STATEMENTS | 63 |
Statements of Assets and Liabilities (continued)
October 31, 2020
iShares US & Intl High Yield Corp Bond ETF | ||||
ASSETS | ||||
Investments in securities, at value (including securities on loan)(a): | ||||
Unaffiliated(b) | $ | 172,174,119 | ||
Affiliated(c) | 14,152,610 | |||
Cash | 8,724 | |||
Foreign currency, at value(d) | 647,474 | |||
Receivables: | ||||
Investments sold | 920,847 | |||
Securities lending income — Affiliated | 2,930 | |||
Dividends | 141 | |||
Interest | 2,507,168 | |||
|
| |||
Total assets | 190,414,013 | |||
|
| |||
LIABILITIES | ||||
Collateral on securities loaned, at value | 11,545,198 | |||
Payables: | ||||
Investments purchased | 1,957,731 | |||
Investment advisory fees | 60,051 | |||
|
| |||
Total liabilities | 13,562,980 | |||
|
| |||
NET ASSETS | $ | 176,851,033 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 187,149,767 | ||
Accumulated loss | (10,298,734 | ) | ||
|
| |||
NET ASSETS | $ | 176,851,033 | ||
|
| |||
Shares outstanding | 3,700,000 | |||
|
| |||
Netasset value | $ | 47.80 | ||
|
| |||
Sharesauthorized | 500 million | |||
|
| |||
Parvalue | $ | 0.001 | ||
|
| |||
(a) Securities loaned, at value | $ | 10,900,847 | ||
(b) Investments, at cost — Unaffiliated | $ | 173,574,821 | ||
(c) Investments, at cost — Affiliated | $ | 14,148,237 | ||
(d) Foreign currency, at cost | $ | 650,967 |
See notes to financial statements.
64 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Year Ended October 31, 2020
iShares Bond ETF | iShares J.P. Morgan EM Corporate Bond ETF | iShares J.P. Morgan EM High Yield Bond ETF | iShares J.P. Morgan EM Local Bond ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Affiliated | $ | 111 | $ | 9,024 | $ | 35,632 | $ | 21,977 | ||||||||
Interest — Unaffiliated | 1,431,213 | 8,356,205 | 20,420,382 | 26,909,860 | ||||||||||||
Payment-in-kind interest — Unaffiliated | — | — | 665,615 | — | ||||||||||||
Securities lending income — Affiliated — net | — | 107,560 | 23,294 | — | ||||||||||||
Other income — Unaffiliated | 2,365 | 5,582 | 13,110 | — | ||||||||||||
Foreign taxes withheld | — | — | — | (617,002 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 1,433,689 | 8,478,371 | 21,158,033 | 26,314,835 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 176,287 | 926,108 | 1,698,445 | 1,371,080 | ||||||||||||
Miscellaneous | 264 | 264 | 264 | 4,230 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 176,551 | 926,372 | 1,698,709 | 1,375,310 | ||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | — | — | (64,291 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after fees waived | 176,551 | 926,372 | 1,634,418 | 1,375,310 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 1,257,138 | 7,551,999 | 19,523,615 | 24,939,525 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated(a) | (1,387,191 | ) | (1,423,878 | ) | (23,990,453 | ) | (51,818,041 | ) | ||||||||
Investments — Affiliated | — | (8,124 | ) | (6,291 | ) | — | ||||||||||
In-kind redemptions — Unaffiliated | — | (3,303,905 | ) | (16,929,505 | ) | (3,093,373 | ) | |||||||||
Foreign currency transactions | 55,505 | — | — | (1,274,656 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized loss | (1,331,686 | ) | (4,735,907 | ) | (40,926,249 | ) | (56,186,070 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated(b) | 1,392,220 | (1,360,494 | ) | (7,707,080 | ) | 5,628,054 | ||||||||||
Investments — Affiliated | — | 5,699 | (1,815 | ) | — | |||||||||||
Foreign currency translations | (7,802 | ) | — | — | (67,521 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | 1,384,418 | (1,354,795 | ) | (7,708,895 | ) | 5,560,533 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 52,732 | (6,090,702 | ) | (48,635,144 | ) | (50,625,537 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,309,870 | $ | 1,461,297 | $ | (29,111,529 | ) | $ | (25,686,012 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
(a) Net of foreign capital gain tax of | $ | — | $ | — | $ | — | $ | 242,735 | ||||||||
(b) Net of deferred foreign capital gain tax of | $ | — | $ | — | $ | — | $ | 35,565 |
See notes to financial statements.
FINANCIAL STATEMENTS | 65 |
Statements of Operations (continued)
Year Ended October 31, 2020
iShares US & Intl High Yield Corp Bond ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Affiliated | $ | 7,407 | ||
Interest — Unaffiliated | 8,401,022 | |||
Securities lending income — Affiliated — net | 84,786 | |||
Other income — Unaffiliated | 25,359 | |||
|
| |||
Total investment income | 8,518,574 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 674,221 | |||
Miscellaneous | 264 | |||
|
| |||
Total expenses | 674,485 | |||
|
| |||
Net investment income | 7,844,089 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated | (4,820,317 | ) | ||
Investments — Affiliated | 2,614 | |||
In-kind redemptions — Unaffiliated | (2,661,123 | ) | ||
Foreign currency transactions | 46,202 | |||
|
| |||
Net realized loss | (7,432,624 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | (38,990 | ) | ||
Investments — Affiliated | (5,503 | ) | ||
Foreign currency translations | (11,785 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) | (56,278 | ) | ||
|
| |||
Net realized and unrealized loss | (7,488,902 | ) | ||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 355,187 | ||
|
|
See notes to financial statements.
66 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Statements of Changes in Net Assets
iShares International High Yield Bond ETF | iShares J.P. Morgan EM Corporate Bond ETF | |||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/20 | Year Ended 10/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 1,257,138 | $ | 1,452,281 | $ | 7,551,999 | $ | 4,814,973 | ||||||||
Net realized loss | (1,331,686 | ) | (3,415,656 | ) | (4,735,907 | ) | (93,270 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 1,384,418 | 3,647,392 | (1,354,795 | ) | 7,349,578 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 1,309,870 | 1,684,017 | 1,461,297 | 12,071,281 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (495,118 | ) | (1,938,517 | ) | (7,540,091 | ) | (4,625,003 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 5,097,119 | (24,764,950 | ) | 54,125,456 | 87,723,168 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | 5,911,871 | (25,019,450 | ) | 48,046,662 | 95,169,446 | |||||||||||
Beginning of year | 40,838,315 | 65,857,765 | 166,684,809 | 71,515,363 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 46,750,186 | $ | 40,838,315 | $ | 214,731,471 | $ | 166,684,809 | ||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 67 |
Statements of Changes in Net Assets (continued)
iShares J.P. Morgan EM High Yield Bond ETF | iShares J.P. Morgan EM Local Currency Bond ETF | |||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/20 | Year Ended 10/31/19 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 19,523,615 | $ | 18,676,790 | $ | 24,939,525 | $ | 36,964,541 | ||||||||
Net realized loss | (40,926,249 | ) | (16,048,982 | ) | (56,186,070 | ) | (24,363,579 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (7,708,895 | ) | 26,046,919 | 5,560,533 | 19,622,567 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (29,111,529 | ) | 28,674,727 | (25,686,012 | ) | 32,223,529 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (19,949,771 | ) | (22,615,509 | ) | (24,281,359 | ) | (14,295,840 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 19,267,173 | (71,222,529 | ) | 13,989,851 | 94,418,220 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | ||||||||||||||||
Total increase (decrease) in net assets | (29,794,127 | ) | (65,163,311 | ) | (35,977,520 | ) | 112,345,909 | |||||||||
Beginning of year | 333,378,154 | 398,541,465 | 536,077,971 | 423,732,062 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 303,584,027 | $ | 333,378,154 | $ | 500,100,451 | $ | 536,077,971 | ||||||||
|
|
|
|
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
68 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
iShares US & Intl High Yield Corp Bond ETF | ||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 7,844,089 | $ | 8,719,180 | ||||
Net realized loss | (7,432,624 | ) | (5,246,295 | ) | ||||
Net change in unrealized appreciation (depreciation) | (56,278 | ) | 7,466,935 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 355,187 | 10,939,820 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (7,407,517 | ) | (9,914,724 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from capital share transactions | 7,603,062 | (36,077,886 | ) | |||||
|
|
|
| |||||
NET ASSETS | ||||||||
Total increase (decrease) in net assets | 550,732 | (35,052,790 | ) | |||||
Beginning of year | 176,300,301 | 211,353,091 | ||||||
|
|
|
| |||||
End of year | $ | 176,851,033 | $ | 176,300,301 | ||||
|
|
|
|
(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 69 |
(For a share outstanding throughout each period)
iShares International High Yield Bond ETF | ||||||||||||||||||||||||||||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | $ | 51.05 | $ | 50.66 | $ | 53.04 | $ | 46.91 | $ | 46.44 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income(a) | 1.42 | 1.51 | 1.54 | 1.77 | 1.82 | |||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.09 | 0.82 | (3.92 | ) | 4.85 | (0.47 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net increase (decrease) from investment operations | 1.51 | 2.33 | (2.38 | ) | 6.62 | 1.35 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.62 | ) | (1.94 | ) | — | (0.40 | ) | (0.26 | ) | |||||||||||||||||||||||||||||||
Return of capital | — | — | — | (0.09 | ) | (0.62 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total distributions | (0.62 | ) | (1.94 | ) | — | (0.49 | ) | (0.88 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net asset value, end of year | $ | 51.94 | $ | 51.05 | $ | 50.66 | $ | 53.04 | $ | 46.91 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||||||
Based on net asset value | 3.00 | % | 4.85 | % | (4.49 | )% | 14.21 | % | 2.95 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.51 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total expenses after fees waived | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income | 2.85 | % | 3.03 | % | 2.87 | % | 3.62 | % | 3.93 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) | $ | 46,750 | $ | 40,838 | $ | 65,858 | $ | 90,160 | $ | 154,796 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Portfolio turnover rate(d) | 46 | % | 34 | % | 31 | % | 49 | % | 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 excludes in-kind transactions. |
See notes to financial statements.
70 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares J.P. Morgan EM Corporate Bond ETF | ||||||||||||||||||||||||||||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | $ | 51.29 | $ | 47.68 | $ | 51.33 | $ | 50.40 | $ | 48.21 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income(a) | 2.06 | 2.25 | 2.16 | 2.10 | 2.19 | |||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.13 | ) | 3.61 | (3.70 | ) | 0.90 | 2.18 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net increase (decrease) from investment operations | 1.93 | 5.86 | (1.54 | ) | 3.00 | 4.37 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||||||||||||||||||
From net investment income | (2.09 | ) | (2.25 | ) | (2.11 | ) | (2.07 | ) | (2.18 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total distributions | (2.09 | ) | (2.25 | ) | (2.11 | ) | (2.07 | ) | (2.18 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net asset value, end of year | $ | 51.13 | $ | 51.29 | $ | 47.68 | $ | 51.33 | $ | 50.40 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||||||
Based on net asset value | 3.94 | % | 12.57 | % | (3.09 | )% | 6.14 | % | 9.33 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income | 4.08 | % | 4.51 | % | 4.37 | % | 4.16 | % | 4.51 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) | $ | 214,731 | $ | 166,685 | $ | 71,515 | $ | 87,269 | $ | 32,758 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Portfolio turnover rate(d) | 25 | % | 21 | % | 16 | % | 62 | % | 22 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 | 71 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares J.P. Morgan EM High Yield Bond ETF | ||||||||||||||||||||||||||||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | $ | 46.63 | $ | 45.29 | $ | 50.60 | $ | 49.97 | $ | 46.82 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income(a) | 2.52 | 2.66 | 2.44 | 2.87 | 3.03 | |||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (3.54 | ) | 1.93 | (5.40 | ) | 0.77 | 3.25 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net increase (decrease) from investment operations | (1.02 | ) | 4.59 | (2.96 | ) | 3.64 | 6.28 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||||||||||||||||||
From net investment income | (2.55 | ) | (3.25 | ) | (2.35 | ) | (3.01 | ) | (3.13 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total distributions | (2.55 | ) | (3.25 | ) | (2.35 | ) | (3.01 | ) | (3.13 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net asset value, end of year | $ | 43.06 | $ | 46.63 | $ | 45.29 | $ | 50.60 | $ | 49.97 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||||||
Based on net asset value | (2.08 | )% | 10.51 | % | (5.96 | )%(d) | 7.60 | % | 14.02 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total expenses after fees waived | 0.48 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income | 5.75 | % | 5.75 | % | 5.11 | % | 5.73 | % | 6.35 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) | $ | 303,584 | $ | 333,378 | $ | 398,541 | $ | 624,867 | $ | 107,431 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Portfolio turnover rate(e) | 65 | % | 32 | % | 19 | % | 25 | % | 29 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 had no impact on the Fund’s total return. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
72 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares J.P. Morgan EM Local Currency Bond ETF | ||||||||||||||||||||||||||||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | $ | 45.43 | $ | 43.24 | $ | 46.85 | $ | 45.14 | $ | 41.31 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income(a) | 2.29 | 3.09 | 2.87 | 2.29 | 1.94 | |||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (4.11 | ) | 0.59 | (6.48 | ) | (0.58 | ) | 1.89 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net increase (decrease) from investment operations | (1.82 | ) | 3.68 | (3.61 | ) | 1.71 | 3.83 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||||||||||||||||||
From net investment income | (1.93 | ) | (1.49 | ) | — | — | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total distributions | (1.93 | ) | (1.49 | ) | — | — | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net asset value, end of year | $ | 41.68 | $ | 45.43 | $ | 43.24 | $ | 46.85 | $ | 45.14 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||||||
Based on net asset value | (4.20 | )% | 8.75 | % | (7.71 | )% | 3.79 | % | 9.06 | %(d) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.30 | % | 0.30 | % | 0.42 | % | 0.50 | % | 0.50 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total expenses after fees waived | 0.30 | % | 0.30 | % | 0.41 | % | 0.50 | % | 0.50 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income | 5.46 | % | 6.95 | % | 6.19 | % | 5.04 | % | 4.56 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) | $ | 500,100 | $ | 536,078 | $ | 423,732 | $ | 309,217 | $ | 451,410 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Portfolio turnover rate(e) | 43 | % | 44 | % | 51 | % | 97 | % | 59 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 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 return for the year ended October 31, 2016 was 9.27%. |
(e) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 73 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares US & Intl High Yield Corp Bond ETF | ||||||||||||||||||||||||||||||||||||||||
Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/18 | Year Ended 10/31/17 | Year Ended 10/31/16 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year | $ | 48.97 | $ | 48.03 | $ | 50.98 | $ | 48.77 | $ | 47.57 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income(a) | 2.21 | 2.42 | 2.46 | 2.45 | 2.55 | |||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.27 | ) | 1.17 | (2.80 | ) | 2.08 | 0.57 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net increase (decrease) from investment operations | 0.94 | 3.59 | (0.34 | ) | 4.53 | 3.12 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Distributions(c) | ||||||||||||||||||||||||||||||||||||||||
From net investment income | (2.11 | ) | (2.65 | ) | (2.61 | ) | (2.32 | ) | (1.92 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total distributions | (2.11 | ) | (2.65 | ) | (2.61 | ) | (2.32 | ) | (1.92 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net asset value, end of year | $ | 47.80 | $ | 48.97 | $ | 48.03 | $ | 50.98 | $ | 48.77 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Return | ||||||||||||||||||||||||||||||||||||||||
Based on net asset value | 2.04 | % | 7.74 | % | (0.71 | )% | 9.58 | % | 6.82 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Total expenses | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.51 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total expenses after fees waived | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net investment income | 4.65 | % | 5.02 | % | 4.95 | % | 4.93 | % | 5.44 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) | $ | 176,851 | $ | 176,300 | $ | 211,353 | $ | 214,103 | $ | 97,547 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Portfolio turnover rate(d) | 33 | % | 24 | % | 20 | % | 22 | % | 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 excludes in-kind transactions. |
See notes to financial statements.
74 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements |
1. | ORGANIZATION |
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
International High Yield Bond | Diversified | |||
J.P. Morgan EM Corporate Bond | Diversified | |||
J.P. Morgan EM High Yield Bond(a) | Non-diversified | |||
J.P. Morgan EM Local Currency Bond | Non-diversified | |||
US & Intl High Yield Corp Bond | Diversified |
(a) | Formerly the iShares Emerging Markets High Yield Bond ETF. |
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment-in-kind interest are recognized daily on an accrual basis.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the statement of operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: 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, 2020, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Recent Accounting Standards: The Funds have adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Funds have changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Funds applied the amendments on a modified retrospective basis beginning with the fiscal period ended October 31, 2020. The adjusted cost basis of securities at October 31, 2019 are
NOTES TO FINANCIAL STATEMENTS | 75 |
Notes to Financial Statements (continued) |
as follows:
iShares ETF | ||||
International High Yield Bond | $ | 42,987,808 | ||
J.P. Morgan EM Corporate Bond | 178,658,233 | |||
J.P. Morgan EM High Yield Bond | 346,208,998 | |||
US & Intl High Yield Corp Bond | 197,472,449 |
This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. 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 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 for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. 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 (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
If events (e.g., a market closure, market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy 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 such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof 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/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
76 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued) |
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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.
When a fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, a fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.
Floating rate loan interests are usually freely callable at the borrower’s option. A fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a fund having a contractual relationship only with the lender, not with the borrower. A fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a fund assumes the credit risk of both the borrower and the lender that is selling the Participation. A fund’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a fund having a direct contractual relationship with the borrower, and a fund may enforce compliance by the borrower with the terms of the loan agreement.
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, 2020, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of October 31, 2020 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
NOTES TO FINANCIAL STATEMENTS | 77 |
Notes to Financial Statements (continued) |
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA as of October 31, 2020:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received(a) | Non-Cash Collateral Received | Net Amount | ||||||||||||
J.P. Morgan EM Corporate Bond | ||||||||||||||||
Barclays Bank PLC | $ | 119,631 | $ | 119,631 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 1,277,558 | 1,277,558 | — | — | ||||||||||||
BofA Securities, Inc. | 474,441 | 474,441 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 816,593 | 816,593 | — | — | ||||||||||||
Jefferies LLC | 2,829,441 | 2,829,441 | — | — | ||||||||||||
JPMorgan Securities LLC | 925,402 | 925,402 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 1,897,702 | 1,897,702 | — | — | ||||||||||||
Nomura Securities International Inc. | 751,480 | 751,480 | — | — | ||||||||||||
Pershing LLC | 551,591 | 551,591 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 185,738 | 185,738 | — | — | ||||||||||||
UBS AG | 705,745 | 705,745 | — | — | ||||||||||||
Wells Fargo Securities LLC | 375,151 | 375,151 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
10,910,473 | 10,910,473 | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
J.P. Morgan EM High Yield Bond | ||||||||||||||||
BofA Securities, Inc. | $ | 5,246,152 | $ | 5,246,152 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 221,443 | 221,443 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 840,960 | 840,960 | — | — | ||||||||||||
Goldman Sachs & Co. | 2,167,547 | 2,167,547 | — | — | ||||||||||||
Jefferies LLC | 3,962,454 | 3,962,454 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 1,006,086 | 1,006,086 | — | — | ||||||||||||
Nomura Securities International Inc. | 1,887,770 | 1,887,770 | — | — | ||||||||||||
Pershing LLC | 1,222,194 | 1,222,194 | — | — | ||||||||||||
UBS AG | 2,057 | 2,057 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
16,556,663 | 16,556,663 | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
US & Intl High Yield Corp Bond | ||||||||||||||||
Barclays Bank PLC | $ | 1,179,937 | $ | 1,179,937 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 1,366,256 | 1,366,256 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 406,055 | 406,055 | — | — | ||||||||||||
BofA Securities, Inc. | 223,428 | 223,428 | — | — | ||||||||||||
Citadel Clearing LLC | 191,362 | 191,362 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 533,713 | 533,713 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 405,904 | 405,904 | — | — | ||||||||||||
Goldman Sachs & Co. | 2,615,847 | 2,615,847 | — | — | ||||||||||||
JPMorgan Securities LLC | 2,184,363 | 2,184,363 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 193,490 | 193,490 | — | — | ||||||||||||
RBC Capital Markets LLC | 1,246,028 | 1,246,028 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 173,225 | 173,225 | — | — | ||||||||||||
State Street Bank & Trust Company | 115,583 | 115,583 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 65,656 | 65,656 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
10,900,847 | 10,900,847 | — | — | |||||||||||||
|
|
|
|
|
|
|
|
(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. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).
78 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued) |
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
International High Yield Bond | 0.40 | % | ||
J.P. Morgan EM Corporate Bond | 0.50 | |||
J.P. Morgan EM High Yield Bond | 0.50 | |||
J.P. Morgan EM Local Currency Bond | 0.30 | |||
US & Intl High Yield Corp Bond | 0.40 |
Expense Waivers: For the year ended October 31, 2020, BFA has voluntarily waived a portion of its investment advisory fees for the iShares J.P. Morgan EM High Yield Bond ETF in the amount of $64,291.
Sub-Adviser: BFA has entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of BFA, under which BFA pays BIL for services it provides to the iShares International High Yield Bond ETF, iShares J.P. Morgan EM Local Currency Bond ETF and iShares US & Intl High Yield Corp Bond ETF and effective February 28, 2020, to the iShares J.P. Morgan EM Corporate Bond ETF and the iShares J.P. Morgan EM High Yield Bond ETF. Effective February 28, 2020, BFA has entered into a separate sub-advisory agreement with BlackRock (Singapore) Limited (“BRS”, together with BlackRock International Limited, the “Sub-Advisers”), both affiliates of BFA, under which BFA pays BRS for services it provides to the iShares J.P. Morgan EM Local Currency Bond ETF.
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 (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended October 31, 2020, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
J.P. Morgan EM Corporate Bond | $ | 29,900 | ||
J.P. Morgan EM High Yield Bond | 6,977 | |||
US & Intl High Yield Corp Bond | 23,729 |
Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the year ended October 31, 2020, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
NOTES TO FINANCIAL STATEMENTS | 79 |
Notes to Financial Statements (continued) |
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
International High Yield Bond | $ | 130,184 | $ | — | $ | — | ||||||
J.P. Morgan EM Corporate Bond | 195,835 | 1,937,309 | 15,612 | |||||||||
J.P. Morgan EM High Yield Bond | 15,923,101 | 5,084,914 | (394,846 | ) | ||||||||
US & Intl High Yield Corp Bond | 120,067 | — | — |
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.
6. | PURCHASES AND SALES |
For the year ended October 31, 2020, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
International High Yield Bond | $ | 20,098,145 | $ | 20,200,442 | ||||
J.P. Morgan EM Corporate Bond | 57,379,080 | 45,365,740 | ||||||
J.P. Morgan EM High Yield Bond | 315,765,939 | 212,412,134 | ||||||
J.P. Morgan EM Local Currency Bond | 209,227,983 | 192,341,389 | ||||||
US & Intl High Yield Corp Bond | 56,450,432 | 54,063,491 |
For the year ended October 31, 2020, purchases and sales related to in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
International High Yield Bond | $ | 4,906,344 | $ | — | ||||
J.P. Morgan EM Corporate Bond | 82,668,528 | 39,587,897 | ||||||
J.P. Morgan EM High Yield Bond | 52,466,889 | 137,250,310 | ||||||
J.P. Morgan EM Local Currency Bond | 87,949,943 | 85,787,881 | ||||||
US & Intl High Yield Corp Bond | 39,766,819 | 34,243,031 |
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
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, 2020, the following permanent differences attributable to realized gains (losses) from in-kind redemptions and net investment loss, were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) | ||||||
J.P. Morgan EM Corporate Bond | $ | (3,322,669 | ) | $ | 3,322,669 | |||
J.P. Morgan EM High Yield Bond | (17,381,400 | ) | 17,381,400 | |||||
J.P. Morgan EM Local Currency Bond | (29,272,079 | ) | 29,272,079 | |||||
US & Intl High Yield Corp Bond | (2,671,049 | ) | 2,671,049 |
The tax character of distributions paid was as follows:
| ||||||||
iShares ETF | Year Ended 10/31/20 | Year Ended 10/31/19 | ||||||
| ||||||||
International High Yield Bond | ||||||||
Ordinary income | $ | 495,118 | $ | 1,938,517 | ||||
|
|
|
|
80 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued) |
iShares ETF | Year Ended 10/31/20 | Year Ended 10/31/19 | ||||
J.P. Morgan EM Corporate Bond | ||||||
Ordinary income | $ 7,540,091 | $ 4,625,003 | ||||
|
| |||||
J.P. Morgan EM High Yield Bond | ||||||
Ordinary income | $19,949,771 | $22,615,509 | ||||
|
| |||||
J.P. Morgan EM Local Currency Bond | ||||||
Ordinary income | $24,281,359 | $14,295,840 | ||||
|
| |||||
US & Intl High Yield Corp Bond | ||||||
Ordinary income | $ 7,407,517 | $ 9,914,724 | ||||
|
|
As of October 31, 2020, 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 | ||||||
International High Yield Bond | $ | 505,926 | $ | (4,965,224 | ) | $ | (974,314 | ) | $ | (5,433,612 | ) | |||||
J.P. Morgan EM Corporate Bond | 712,296 | (1,922,780 | ) | 1,838,301 | 627,817 | |||||||||||
J.P. Morgan EM High Yield Bond | 2,348,993 | (52,370,224 | ) | (25,495,839 | ) | (75,517,070 | ) | |||||||||
J.P. Morgan EM Local Currency Bond | — | (29,257,942 | ) | (29,761,110 | ) | (59,019,052 | ) | |||||||||
US & Intl High Yield Corp Bond | 855,447 | (9,551,833 | ) | (1,602,348 | ) | (10,298,734 | ) |
(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, amortization methods for premiums and discounts on fixed income securities, the accrual of income on securities in default and the classification of investments. |
As of October 31, 2020, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
International High Yield Bond | $ | 46,312,406 | $ | 1,114,791 | $ | (2,094,583 | ) | $ | (979,792 | ) | ||||||
J.P. Morgan EM Corporate Bond | 223,899,091 | 5,816,274 | (3,977,973 | ) | 1,838,301 | |||||||||||
J.P. Morgan EM High Yield Bond | 343,571,808 | 4,212,682 | (29,708,521 | ) | (25,495,839 | ) | ||||||||||
J.P. Morgan EM Local Currency Bond | 520,833,543 | 10,713,199 | (39,933,162 | ) | (29,219,963 | ) | ||||||||||
US & Intl High Yield Corp Bond | 187,929,355 | 4,022,573 | (5,625,199 | ) | (1,602,626 | ) |
8. | LINE OF CREDIT |
The iShares J.P. Morgan EM Local Currency Bond ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $300 million credit agreement (“Credit Agreement”) with State Street Bank and Trust Company, which expires on July 15, 2021. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Credit Agreement sets specific sub limits on aggregate borrowings based on two tiers of Participating Funds: $300 million with respect to the funds within Tier 1, including the Fund, and $200 million with respect to Tier 2. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Credit Agreement. The Credit Agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Credit Agreement.
During the year ended October 31, 2020, the Fund did not borrow under the credit agreement.
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
NOTES TO FINANCIAL STATEMENTS | 81 |
Notes to Financial Statements (continued) |
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; and (iii) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.
Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the statement of assets and liabilities, less any collateral held by the Funds.
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.
Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.
Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.
Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.
82 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued) |
Certain Funds invest a significant portion of their assets in high yield securities. 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.
Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.
LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.
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 10/31/20 | Year Ended 10/31/19 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
International High Yield Bond | ||||||||||||||||
Shares sold | 100,000 | $ | 5,097,119 | — | $ | — | ||||||||||
Shares redeemed | — | — | (500,000 | ) | (24,764,950 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 100,000 | 5,097,119 | (500,000 | ) | (24,764,950 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
J.P. Morgan EM Corporate Bond | ||||||||||||||||
Shares sold | 1,900,000 | 98,149,834 | 1,800,000 | 90,269,497 | ||||||||||||
Shares redeemed | (950,000 | ) | (44,024,378 | ) | (50,000 | ) | (2,546,329 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 950,000 | 54,125,456 | 1,750,000 | 87,723,168 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
J.P. Morgan EM High Yield Bond | ||||||||||||||||
Shares sold | 3,450,000 | 163,260,074 | 1,800,000 | 83,994,813 | ||||||||||||
Shares redeemed | (3,550,000 | ) | (143,992,901 | ) | (3,450,000 | ) | (155,217,342 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (100,000 | ) | 19,267,173 | (1,650,000 | ) | (71,222,529 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
J.P. Morgan EM Local Currency Bond | ||||||||||||||||
Shares sold | 4,400,000 | 185,174,171 | 8,400,000 | 376,361,928 | ||||||||||||
Shares redeemed | (4,200,000 | ) | (171,184,320 | ) | (6,400,000 | ) | (281,943,708 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 200,000 | 13,989,851 | 2,000,000 | 94,418,220 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
US & Intl High Yield Corp Bond | ||||||||||||||||
Shares sold | 900,000 | 43,664,313 | 600,000 | 29,090,655 | ||||||||||||
Shares redeemed | (800,000 | ) | (36,061,251 | ) | (1,400,000 | ) | (65,168,541 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 100,000 | 7,603,062 | (800,000 | ) | (36,077,886 | ) | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
NOTES TO FINANCIAL STATEMENTS | 83 |
Notes to Financial Statements (continued) |
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares Preferred and Income Securities ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. In an opinion dated January 23, 2020, the California Court of Appeal affirmed the dismissal of Plaintiffs’ claims. On March 3, 2020, plaintiffs filed a petition for review by the California Supreme Court. On May 27, 2020, the California Supreme Court denied Plaintiff’s petition for review. The case is now closed.
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.
84 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Directors of iShares, Inc. and
Shareholders of iShares International High Yield Bond ETF,
iShares J.P. Morgan EM Corporate Bond ETF, iShares J.P. Morgan EM High Yield Bond ETF,
iShares J.P. Morgan EM Local Currency Bond ETF and iShares US & Intl High Yield Corp Bond ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares International High Yield Bond ETF, iShares J.P. Morgan EM Corporate Bond ETF, iShares J.P. Morgan EM High Yield Bond ETF, iShares J.P. Morgan EM Local Currency Bond ETF and iShares US & Intl High Yield Corp Bond ETF (five of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of October 31, 2020, the related statements of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (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, 2020, 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, 2020 and each of the financial highlights for each of the five years in the period ended October 31, 2020 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, 2020 by correspondence with the custodian, issuer, transfer agent, agent bank 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 22, 2020
We have served as the auditor of one or more BlackRock investment companies since 2000.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 85 |
Important Tax Information (unaudited) |
For the fiscal year ended October 31, 2020, the Funds earned foreign source income which they intend to pass through to their shareholders:
iShares ETF | Foreign Source Income Earned | |||
International High Yield Bond | $ | 1,269,290 | ||
J.P. Morgan EM Corporate Bond | 8,194,787 | |||
J.P. Morgan EM High Yield Bond | 20,907,840 | |||
J.P. Morgan EM Local Currency Bond | 26,910,842 |
For the fiscal year ended October 31, 2020, 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 | |||
US & Intl High Yield Corp Bond | $ | 5,114,209 |
The Funds hereby designate the following amounts of distributions from direct federal obligation interest for the fiscal year ended October 31, 2020:
iShares ETF | Federal Obligation Interest | |||
International High Yield Bond | $ | 45 | ||
J.P. Morgan EM Corporate Bond | 3,705 | |||
J.P. Morgan EM High Yield Bond | 15,144 | |||
J.P. Morgan EM Local Currency Bond | 9,108 | |||
US & Intl High Yield Corp Bond | 3,146 |
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.
86 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract
iShares International HighYield Bond ETF, iShares J.P. Morgan EM Corporate Bond ETF, iShares J.P. Morgan EM HighYield Bond ETF, iShares US & Intl HighYield Corp Bond ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”), and the Sub-Advisory Agreement between BFA and BlackRock International Limited (BIL), (together the Advisory Agreements”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreements. At meetings on April 17, 2020 and May 19, 2020, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 8-10, 2020, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreements for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreements for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA and BIL; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreements 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were higher than the median of overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds. BFA pays BIL for sub-advisory services, and there are no additional fees imposed on the Fund in respect of the services provided under the Sub-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 the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2019, to that of relevant comparison fund(s) for the same periods.
The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreements for the coming year.
Nature, Extent and Quality of Services Provided: 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 and under the Advisory Agreements 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. 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, including those of BIL, 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 investment performance, investment and risk management processes and strategies for BFA and BIL, which were provided at the June 8-10, 2020 meeting and throughout the year and matters related to BFA’s portfolio compliance program.
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 Agreements supported the Board’s approval of the continuance of the Advisory Agreements for the coming year.
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 87 |
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. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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. 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 Agreements 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 substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board 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 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 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 Agreements for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory 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 Agreements for the coming year.
88 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Board Review and Approval of Investment Advisory Contract (continued)
iShares J.P. Morgan EM Local Currency Bond ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”), and the Sub-Advisory Agreement between BFA and BlackRock International Limited (BIL) and BlackRock (Singapore) Limited (BRS), (the “Sub-Advisory Agreements”), (together the Advisory Agreements”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreements. At meetings on April 17, 2020 and May 19, 2020, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 8-10, 2020, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreements for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreements for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA and BIL and BRS; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreements 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds. The Board further noted that BFA pays BIL and BRS for sub-advisory services, and there are no additional fees imposed on the Fund in respect of the services provided under the Sub-Advisory Agreements.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2019, to that of relevant comparison fund(s) for the same periods.
The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreements for the coming year.
Nature, Extent and Quality of Services Provided: 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 and under the Advisory Agreements 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. 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, including those of BIL and BRS, 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 investment performance, investment and risk management processes and strategies for BFA and BIL and BRS, which were provided at the June 8-10, 2020 meeting and throughout the year and matters related to BFA’s portfolio compliance program.
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 Agreements supported the Board’s approval of the continuance of the Advisory Agreements for the coming year.
BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT | 89 |
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. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the 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. 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 Agreements 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 substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board 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 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 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 Agreements for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory 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 Agreements for the coming year.
90 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
October 31, 2020
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 | ||||||||||||||||||||||||
International High Yield Bond | $ | 0.618898 | $ | — | $ | — | $ | 0.618898 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||
J.P. Morgan EM Corporate Bond(a) | 2.085092 | — | 0.005410 | 2.090502 | 100 | — | 0 | (b) | 100 | |||||||||||||||||||||||
J.P. Morgan EM High Yield Bond | 2.553293 | — | — | 2.553293 | 100 | — | — | 100 | ||||||||||||||||||||||||
J.P. Morgan EM Local Currency Bond(a) | 1.778911 | — | 0.148181 | 1.927092 | 92 | — | 8 | 100 | ||||||||||||||||||||||||
US & Intl High Yield Corp Bond | 2.107109 | — | — | 2.107109 | 100 | — | — | 100 |
(a) | The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
(b) | Rounds to less than 1%. |
Premium/Discount Information
Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.
Regulation under the Alternative Investment Fund Managers Directive
The Alternative Investment Fund Managers Directive (the “Directive”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside of the EU, such as BFA (the “Company”). Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the Directive if such managers market a fund to EU investors.
The Company has registered the iShares J.P. Morgan EM High Yield Bond ETF (the “Fund”) to be marketed to EU investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.
Report on Remuneration
The Company is required under the Directive to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.
Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.
BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programmes which support that philosophy.
BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.
Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.
SUPPLEMENTAL INFORMATION | 91 |
Supplemental Information (unaudited) (continued)
Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.
Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organisational structures which are independent of the business units. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.
Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of the total remuneration awarded by the Company to its staff which has been attributed to the Fund in respect of the Company’s financial year ending December 31, 2019 was USD 29.44 thousand. This figure is comprised of fixed remuneration of USD 13.61 thousand and variable remuneration of USD 15.83 thousand. There were a total of 448 beneficiaries of the remuneration described above.
The amount of the aggregate remuneration awarded by the Company, which has been attributed to the Fund in respect of the Company’s financial year ending December 31, 2019, to its senior management was USD 3.75 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.44 thousand.
92 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Director and Officer Information
The Board of Directors 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 Director serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Directors who are not “interested persons” (as defined in the 1940 Act) of the Company are referred to as independent directors (“Independent Directors”).
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 Director also serves as a Trustee of iShares Trust and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 374 funds as of October 31, 2020. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Director and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., ParkAvenue 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’ Directors 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 Directors | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Director | |||
Robert S. Kapito(a) (63) | Director (since 2009). | President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Salim Ramji(b) (50) | Director (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). | Trustee of iShares Trust (since 2019); Trustee of iShares U.S. ETF Trust (since 2019). | |||
(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company 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 Company due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Directors | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Director | |||
Cecilia H. Herbert (71) | Director (since 2005); Independent Board Chair (since 2016). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018) and Investment Committee (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. | Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (64) | Director (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). | Trustee of iShares Trust (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016) and Director of The Hanover Insurance Group, Inc. (since 2016). | |||
Richard L. Fagnani (65) | Director (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). | Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017). |
DIRECTOR AND OFFICER INFORMATION | 93 |
Director and Officer Information (continued)
Independent Directors (continued) | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | Other Directorships Held by Director | |||
John E. Kerrigan (65) | Director (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2019). | Chief Investment Officer, Santa Clara University (since 2002). | Trustee of iShares Trust (since 2005); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Drew E. Lawton (61) | Director (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017). | |||
John E. Martinez (59) | Director (since 2003); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (since 2017); and Director of Reading Partners (2012-2016). | Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Madhav V. Rajan (56) | Director (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); Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Officers | ||||||
Name (Age) | Position(s) | Principal Occupation(s) During the Past 5 Years | ||||
Armando Senra (49) | 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). | ||||
Trent Walker (46) | Treasurer and Chief Financial Officer (since 2020). | Managing Director, BlackRock, Inc. (since September 2019); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds. | ||||
Charles Park (53) | Chief Compliance Officer (since 2006). | 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 Smith (45) | Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||||
Scott Radell (51) | Executive Vice President (since 2012). | Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||||
Alan Mason (59) | Executive Vice President (since 2016). | Managing Director, BlackRock, Inc. (since 2009). | ||||
Marybeth Leithead (57) | 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). |
94 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
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. The iShares Funds’ Forms N-PORT 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.
A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
GENERAL INFORMATION | 95 |
Glossary of Terms Used in this Report
Portfolio Abbreviations - Fixed Income | ||
LIBOR | London Interbank Offered Rate | |
PIK | Payment-in-kind | |
Currency Abbreviations | ||
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
CLP | Chilean Peso | |
CNY | Chinese Yuan | |
COP | Colombian Peso | |
CZK | Czech Koruna | |
DOP | Dominican Peso | |
EUR | Euro | |
GBP | British Pound | |
HUF | Hungarian Forint | |
IDR | Indonesian Rupiah | |
MXN | Mexican Peso | |
MYR | Malaysian Ringgit | |
PEN | Peru Nuevo Sol | |
PHP | Philippine Peso | |
PLN | Polish Zloty | |
RON | Romanian Leu | |
RUB | New Russian Ruble | |
THB | Thai Baht | |
TRY | Turkish Lira | |
UYU | Uruguayan Peso | |
ZAR | South African Rand |
96 | 2 0 2 0 I SHARES ANNUAL REPORT TO SHAREHOLDERS |
Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by JPMorgan Chase & Co., Markit Indices Limited or Morningstar, Inc., 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.
©2020 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-1002-1020
![]() |
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. Other non-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 calling 1-800-474-2737.
Item 3. | Audit Committee Financial Expert. |
The registrant’s Board of Directors 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 five series of the registrant for which the fiscal year-end is October 31, 2020 (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 $78,000 for the fiscal year ended October 31, 2019 and $78,000 for the fiscal year ended October 31, 2020. |
(b) | Audit-Related Fees – There were no fees billed for the fiscal years ended October 31, 2019 and October 31, 2020 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 $18,905 for the fiscal year ended October 31, 2019 and $18,905 for the fiscal year ended October 31, 2020. 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, 2019 and October 31, 2020 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item. |
(e) | (1) The registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the registrant or to any entity controlling, controlled by or under common control with the registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant. |
(2) There were no services described in (b) through (d) above that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) | None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended October 31, 2020 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees. |
(g) | The aggregate non-audit fees billed by the registrant’s principal accountant for services rendered to the Funds, and rendered to the registrant’s investment adviser, and any Adviser Affiliate that provides ongoing services to the registrant for the last two fiscal years were $18,905 for the fiscal year ended October 31, 2019 and $18,905 for the fiscal year ended October 31, 2020. |
(h) | The registrant’s audit committee has considered whether the provision of non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliate that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, is compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services, if any, does not compromise the principal accountant’s independence. |
Item 5. | Audit Committee of Listed Registrants |
(a) The registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act of 1934 and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The registrant’s audit committee members are Richard L. Fagnani, 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 for Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the registrant.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Directors.
Item 11. | Controls and Procedures. |
(a) The President (the registrant’s Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable to the registrant.
Item 13. | Exhibits. |
(a) (1) 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, Inc.
By: | /s/ Armando Senra | |||
Armando Senra, President (Principal Executive Officer) |
Date: January 06, 2021
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: January 06, 2021
By: | /s/ Trent Walker | |||
Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer) |
Date: January 06, 2021