UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09729

iShares Trust

(Exact name of Registrant as specified in charter)

c/o: State Street Bank and Trust Company

200 Clarendon Street, Boston, MA 02116

(Address of principal executive offices) (Zip code)

The Corporation Trust Company

1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 670-2000

Date of fiscal year end: April 30, 2014

Date of reporting period: October 31, 2013

Item 1. Reports to Stockholders.

OCTOBER 31, 2013

2013 SEMI-ANNUAL REPORT (UNAUDITED)

iShares Trust

^Ø   iShares Dow Jones U.S. ETF  |  IYY  |  NYSE Arca

^Ø   iShares U.S. Energy ETF  |  IYE  |  NYSE Arca

^Ø   iShares U.S. Healthcare ETF  |  IYH  |  NYSE Arca

^Ø   iShares U.S. Technology ETF  |  IYW  |  NYSE Arca

^Ø   iShares U.S. Telecommunications ETF  |  IYZ  |  NYSE Arca

^Ø   iShares U.S. Utilities ETF  |  IDU  |  NYSE Arca

^Ø   iShares Transportation Average ETF  |  IYT  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	12
Shareholder Expenses	12
Schedules of Investments	13
iShares Dow Jones U.S. ETF	13
iShares U.S. Energy ETF	30
iShares U.S. Healthcare ETF	32
iShares U.S. Technology ETF	34
iShares U.S. Telecommunications ETF	37
iShares U.S. Utilities ETF	38
iShares Transportation Average ETF	40
Financial Statements	41
Financial Highlights	51
Notes to Financial Statements	58
Board Review and Approval of Investment Advisory Contract	66
Supplemental Information	73

Fund Performance Overview

iSHARES^® DOW JONES U.S. ETF

Performance as of October 31, 2013

The iShares Dow Jones U.S. ETF (the “Fund”), formerly the iShares Dow Jones U.S. Index Fund, seeks to track the investment results of a broad-based index composed of U.S. equities, as represented by the Dow Jones U.S. Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.40%, net of fees, while the total return for the Index was 11.53%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		28.06%		28.17%		28.35%		28.06%		28.17%		28.35%
5 Years		15.72%		15.67%		15.93%		107.52%		107.06%		109.42%
10 Years		7.86%		7.86%		8.06%		113.05%		113.21%		117.16%

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,114.00	$	1.07	$	1,000.00	$	1,024.20	$	1.02		0.20%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Information Technology	17.71	%
Financials	17.01
Consumer Discretionary	13.28
Health Care	12.38
Industrials	11.33
Energy	9.84
Consumer Staples	9.11
Materials	3.78
Utilities	3.27
Telecommunication Services	2.29
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Apple Inc.	2.56	%
Exxon Mobil Corp.	2.12
Google Inc. Class A	1.55
Microsoft Corp.	1.44
General Electric Co.	1.43
Johnson & Johnson	1.41
Chevron Corp.	1.25
Procter & Gamble Co. (The)	1.19
Berkshire Hathaway Inc. Class B	1.12
Wells Fargo & Co.	1.11
TOTAL	15.18	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® U.S. ENERGY ETF

Performance as of October 31, 2013

The iShares U.S. Energy ETF (the “Fund”), formerly the iShares Dow Jones U.S. Energy Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the energy sector, as represented by the Dow Jones U.S. Oil & Gas Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 10.71%, net of fees, while the total return for the Index was 10.97%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.26%		21.52%		21.60%		21.26%		21.52%		21.60%
5 Years		11.82%		11.82%		12.30%		74.79%		74.81%		78.64%
10 Years		14.52%		14.51%		14.92%		287.94%		287.81%		301.87%

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,107.10	$	2.39	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Oil, Gas & Consumable Fuels	77.51	%
Energy Equipment & Services	21.71
Other**	0.78
TOTAL	100.00	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Exxon Mobil Corp.	21.95	%
Chevron Corp.	12.89
Schlumberger Ltd.	6.90
ConocoPhillips	4.99
Occidental Petroleum Corp.	4.31
EOG Resources Inc.	2.70
Anadarko Petroleum Corp.	2.66
Halliburton Co.	2.49
Phillips 66	2.19
Apache Corp.	2.00
TOTAL	63.08	%

6 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. HEALTHCARE ETF

Performance as of October 31, 2013

The iShares U.S. Healthcare ETF (the “Fund”), formerly the iShares Dow Jones U.S. Healthcare Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the healthcare sector, as represented by the Dow Jones U.S. Health Care Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.89%, net of fees, while the total return for the Index was 12.15%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		34.54%		34.58%		35.19%		34.54%		34.58%		35.19%
5 Years		17.21%		17.14%		17.69%		121.24%		120.61%		125.80%
10 Years		9.01%		9.01%		9.51%		136.91%		137.01%		148.10%

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,118.90	$	2.40	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Pharmaceuticals	43.85	%
Biotechnology	20.42
Health Care Equipment & Supplies	17.47
Health Care Providers & Services	14.21
Life Sciences Tools & Services	3.87
Other**	0.18
TOTAL	100.00	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Johnson & Johnson	12.05	%
Pfizer Inc.	9.38
Merck & Co. Inc.	6.09
Gilead Sciences Inc.	5.02
Amgen Inc.	4.04
Bristol-Myers Squibb Co.	3.99
AbbVie Inc.	3.55
UnitedHealth Group Inc.	3.20
Celgene Corp.	2.82
Biogen Idec Inc.	2.68
TOTAL	52.82	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® U.S. TECHNOLOGY ETF

Performance as of October 31, 2013

The iShares U.S. Technology ETF (the “Fund”), formerly the iShares Dow Jones U.S. Technology Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the technology sector, as represented by the Dow Jones U.S. Technology Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 12.40%, net of fees, while the total return for the Index was 12.62%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.48%		18.55%		18.82%		18.48%		18.55%		18.82%
5 Years		16.73%		16.70%		17.10%		116.77%		116.46%		120.23%
10 Years		6.35%		6.36%		6.81%		85.02%		85.29%		93.18%

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,124.00	$	2.41	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Computers & Peripherals	23.72	%
Software	22.80
Internet Software & Services	16.21
Semiconductors & Semiconductor Equipment	14.05
Communications Equipment	11.18
IT Services	9.18
Electronic Equipment, Instruments & Components	1.11
Other**	1.75
TOTAL	100.00	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Apple Inc.	17.33	%
Google Inc. Class A	10.53
Microsoft Corp.	9.79
International Business Machines Corp.	6.74
Intel Corp.	4.44
Cisco Systems Inc.	4.41
Oracle Corp.	4.36
QUALCOMM Inc.	4.35
Facebook Inc. Class A	2.99
EMC Corp.	1.83
TOTAL	66.77	%

8 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. TELECOMMUNICATIONS ETF

Performance as of October 31, 2013

The iShares U.S. Telecommunications ETF (the “Fund”), formerly the iShares Dow Jones U.S. Telecommunications Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the telecommunications sector, as represented by the Dow Jones U.S. Select Telecommunications Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.10%, net of fees, while the total return for the Index was 11.15%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.54%		23.67%		24.07%		23.54%		23.67%		24.07%
5 Years		16.52%		16.17%		17.01%		114.76%		111.59%		119.33%
10 Years		6.95%		6.94%		7.41%		95.85%		95.67%		104.30%

Index performance through May 8, 2007 reflects the performance of the Dow Jones U.S. Telecommunications Index. Index performance beginning on May 9, 2007 reflects the performance of the Dow Jones U.S. Select Telecommunications 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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,111.00	$	2.39	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Diversified Telecommunication Services	60.92	%
Wireless Telecommunication Services	37.13
Communications Equipment	1.95
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

AT&T Inc.	13.11	%
Verizon Communications Inc.	11.87
Crown Castle International Corp.	7.33
CenturyLink Inc.	7.05
SBA Communications Corp. Class A	6.00
Level 3 Communications Inc.	4.55
Sprint Corp.	4.54
T-Mobile US Inc.	4.40
Windstream Holdings Inc.	4.21
tw telecom inc.	4.18
TOTAL	67.24	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® U.S. UTILITIES ETF

Performance as of October 31, 2013

The iShares U.S. Utilities ETF (the “Fund”), formerly the iShares Dow Jones U.S. Utilities Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the utilities sector, as represented by the Dow Jones U.S. Utilities Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -3.24%, net of fees, while the total return for the Index was -3.07%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.31%		11.34%		11.81%		11.31%		11.34%		11.81%
5 Years		10.71%		10.65%		11.16%		66.30%		65.87%		69.69%
10 Years		9.54%		9.54%		10.04%		148.69%		148.77%		160.42%

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	967.60	$	2.23	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Electric Utilities	50.02	%
Multi-Utilities	31.93
Gas Utilities	7.86
Independent Power Producers & Energy Traders	4.39
Oil, Gas & Consumable Fuels	3.85
Water Utilities	1.95
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Duke Energy Corp.	8.19	%
Dominion Resources Inc.	5.97
NextEra Energy Inc.	5.82
Southern Co. (The)	5.78
Exelon Corp.	3.95
Spectra Energy Corp.	3.85
American Electric Power Co. Inc.	3.69
Sempra Energy	3.35
PPL Corp.	3.13
PG&E Corp.	3.01
TOTAL	46.74	%

10 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® TRANSPORTATION AVERAGE ETF

Performance as of October 31, 2013

The iShares Transportation Average ETF (the “Fund”), formerly the iShares Dow Jones Transportation Average Index Fund, seeks to track the investment results of an index composed of U.S. equities in the transportation sector, as represented by the Dow Jones Transportation Average Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 13.82%, net of fees, while the total return for the Index was 13.75%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		39.98%		39.98%		39.26%		39.98%		39.98%		39.26%
5 Years		13.91%		13.87%		14.46%		91.78%		91.45%		96.49%
10 Years		10.30%		10.29%		10.75%		166.55%		166.41%		177.52%

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 12 for more information.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,138.20	$	2.43	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Road & Rail	46.76	%
Air Freight & Logistics	24.90
Airlines	15.71
Marine	8.30
Trading Companies & Distributors	4.33
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Union Pacific Corp.	11.65	%
FedEx Corp.	9.01
Kansas City Southern Industries Inc.	8.88
United Parcel Service Inc. Class B	7.42
Alaska Air Group Inc.	6.41
Norfolk Southern Corp.	5.94
Ryder System Inc.	4.84
Kirby Corp.	4.76
J.B. Hunt Transport Services Inc.	4.44
GATX Corp.	4.33
TOTAL	67.68	%

FUND PERFORMANCE OVERVIEWS 11

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2013 and held through October 31, 2013, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

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

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

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

12 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.85%
AEROSPACE & DEFENSE — 2.58%
Alliant Techsystems Inc.		1,335	$	145,341
B/E Aerospace Inc.a,b		4,241		344,199
Boeing Co. (The)		29,833		3,893,206
Curtiss-Wright Corp.		1,987		98,913
DigitalGlobe Inc.a		2,858		90,942
Esterline Technologies Corp.a		1,337		107,174
Exelis Inc.		7,975		131,508
General Dynamics Corp.		14,339		1,242,188
HEICO Corp.		2,437		130,574
Hexcel Corp.a		4,335		183,414
Honeywell International Inc.		33,767		2,928,612
Huntington Ingalls Industries Inc.		2,143		153,332
L-3 Communications Holdings Inc.		3,886		390,349
Lockheed Martin Corp.		11,606		1,547,544
Moog Inc. Class Aa		1,959		117,011
Northrop Grumman Corp.		9,907		1,065,102
Precision Castparts Corp.		6,266		1,588,118
Raytheon Co.		13,882		1,143,460
Rockwell Collins Inc.		5,770		402,919
Spirit AeroSystems Holdings Inc. Class Aa		4,358		116,315
Teledyne Technologies Inc.a		1,612		143,178
Textron Inc.		12,081		347,812
TransDigm Group Inc.		2,091		304,052
Triumph Group Inc.		2,288		163,935
United Technologies Corp.		36,319		3,858,894
				20,638,092
AIR FREIGHT & LOGISTICS — 0.71%
C.H. Robinson Worldwide Inc.		6,812		406,949
Expeditors International of Washington Inc.		8,923		404,123
FedEx Corp.		12,809		1,677,979
Forward Air Corp.		1,256		50,843
Hub Group Inc. Class Aa		1,526		56,050
United Parcel Service Inc. Class B		31,042		3,049,566
UTi Worldwide Inc.		3,782		57,486
				5,702,996
AIRLINES — 0.33%
Alaska Air Group Inc.		3,039		214,736
Delta Air Lines Inc.		36,750		969,465
JetBlue Airways Corp.a,b		9,703		68,794
Southwest Airlines Co.		30,399		523,471

Security	Shares		Value
Spirit Airlines Inc.a,b		3,193	$	137,778
United Continental Holdings Inc.a		15,404		522,966
US Airways Group Inc.a		8,323		182,856
				2,620,066
AUTO COMPONENTS — 0.56%
Autoliv Inc.		4,136		369,055
BorgWarner Inc.		4,905		505,853
Cooper Tire & Rubber Co.		2,685		69,837
Dana Holding Corp.		6,300		123,480
Delphi Automotive PLC		12,152		695,095
Gentex Corp.		6,121		180,202
Goodyear Tire & Rubber Co. (The)		10,483		219,933
Johnson Controls Inc.		29,451		1,359,164
Lear Corp.		3,462		267,924
Tenneco Inc.a,b		2,603		138,141
TRW Automotive Holdings Corp.a		5,040		378,554
Visteon Corp.a		2,127		163,971
				4,471,209
AUTOMOBILES — 0.71%
Ford Motor Co.		169,498		2,900,111
General Motors Co.a		40,376		1,491,893
Harley-Davidson Inc.		9,601		614,848
Tesla Motors Inc.a,b		3,474		555,632
Thor Industries Inc.		1,901		110,277
				5,672,761
BEVERAGES — 1.89%
Beam Inc.		6,924		465,985
Brown-Forman Corp. Class B NVS		7,046		514,217
Coca-Cola Co. (The)		164,045		6,491,261
Coca-Cola Enterprises Inc.		10,701		446,553
Constellation Brands Inc. Class Aa		7,192		469,638
Dr Pepper Snapple Group Inc.		8,798		416,585
Molson Coors Brewing Co. Class B NVS		6,740		363,960
Monster Beverage Corp.a		5,836		333,994
PepsiCo Inc.		66,361		5,580,296
				15,082,489
BIOTECHNOLOGY — 2.38%
Acorda Therapeutics Inc.a		1,700		52,037
Aegerion Pharmaceuticals Inc.a,b		1,087		90,025
Alexion Pharmaceuticals Inc.a		8,418		1,034,993
Alkermes PLCa		5,733		201,744
Alnylam Pharmaceuticals Inc.a,b		2,330		134,231
Amgen Inc.		32,414		3,760,024
Arena Pharmaceuticals Inc.a,b		9,322		40,924

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
ARIAD Pharmaceuticals Inc.a,b		7,806	$	17,173
Biogen Idec Inc.a		10,230		2,498,064
BioMarin Pharmaceutical Inc.a,b		6,002		377,046
Celgene Corp.a		17,698		2,627,976
Cepheid Inc.a,b		2,865		116,663
Cubist Pharmaceuticals Inc.a		2,814		174,468
Gilead Sciences Inc.a		65,917		4,679,448
Incyte Corp.a,b		5,979		233,181
Isis Pharmaceuticals Inc.a,b		5,031		167,381
Medivation Inc.a,b		3,179		190,295
Myriad Genetics Inc.a,b		3,522		85,866
PDL BioPharma Inc.b		5,938		48,038
Pharmacyclics Inc.a,b		2,896		343,582
Regeneron Pharmaceuticals Inc.a		3,343		961,447
Seattle Genetics Inc.a		4,684		180,943
Theravance Inc.a,b		3,320		121,645
United Therapeutics Corp.a,b		2,019		178,722
Vertex Pharmaceuticals Inc.a		10,054		717,252
				19,033,168
BUILDING PRODUCTS — 0.16%
A.O. Smith Corp.		3,355		173,286
Fortune Brands Home & Security Inc.		7,092		305,523
Lennox International Inc.		1,976		154,247
Masco Corp.		15,423		325,888
Owens Corninga		4,759		170,991
Simpson Manufacturing Co. Inc.		1,727		61,222
USG Corp.a		3,816		104,215
				1,295,372
CAPITAL MARKETS — 2.09%
Affiliated Managers Group Inc.a		2,273		448,781
Ameriprise Financial Inc.		8,516		856,199
Bank of New York Mellon Corp. (The)		49,528		1,574,990
BlackRock Inc.c		5,429		1,633,098
Charles Schwab Corp. (The)		49,916		1,130,597
E*TRADE Financial Corp.a		12,195		206,217
Eaton Vance Corp. NVS		5,239		219,043
Federated Investors Inc. Class B		4,008		108,697
Financial Engines Inc.		2,054		114,757
Franklin Resources Inc.		17,499		942,496
Goldman Sachs Group Inc. (The)		17,971		2,890,815
Greenhill & Co. Inc.		1,109		56,892
Invesco Ltd.		19,061		643,309
Janus Capital Group Inc.		6,444		63,602

Security	Shares		Value
Legg Mason Inc.		4,674	$	179,809
LPL Financial Holdings Inc.		3,572		145,523
Morgan Stanley		59,826		1,718,801
Northern Trust Corp.		9,624		542,986
Raymond James Financial Inc.		5,378		245,506
SEI Investments Co.		6,099		202,426
State Street Corp.		19,198		1,345,204
Stifel Financial Corp.a		2,534		103,767
T. Rowe Price Group Inc.		11,189		866,140
TD Ameritrade Holding Corp.		10,308		280,996
Waddell & Reed Financial Inc. Class A		3,684		227,487
				16,748,138
CHEMICALS — 2.57%
Air Products and Chemicals Inc.		9,056		987,195
Airgas Inc.		2,851		310,959
Albemarle Corp.		3,517		232,790
Ashland Inc.		3,083		285,332
Axiall Corp.		3,016		117,292
Cabot Corp.		2,588		120,627
Celanese Corp. Series A		6,895		386,189
CF Industries Holdings Inc.		2,466		531,670
Chemtura Corp.a,b		4,220		103,390
Cytec Industries Inc.		1,571		130,534
Dow Chemical Co. (The)		52,092		2,056,071
E.I. du Pont de Nemours and Co.		39,742		2,432,210
Eastman Chemical Co.		6,640		523,166
Ecolab Inc.		11,657		1,235,642
FMC Corp.		5,817		423,245
H.B. Fuller Co.		2,122		101,580
Huntsman Corp.		8,350		193,887
International Flavors & Fragrances Inc.		3,526		291,424
LyondellBasell Industries NV Class A		19,217		1,433,588
Minerals Technologies Inc.		1,512		85,625
Monsanto Co.		22,946		2,406,576
Mosaic Co. (The)		14,549		667,072
NewMarket Corp.b		503		156,614
Olin Corp.		3,542		79,730
PolyOne Corp.		4,290		129,987
PPG Industries Inc.		6,165		1,125,606
Praxair Inc.		12,695		1,583,193
Rockwood Holdings Inc.		3,375		213,469
RPM International Inc.		5,719		221,440

14 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Scotts Miracle-Gro Co. (The) Class A		1,840	$	108,045
Sensient Technologies Corp.		2,136		111,350
Sherwin-Williams Co. (The)		3,760		706,880
Sigma-Aldrich Corp.		5,215		450,732
Valspar Corp. (The)		3,469		242,726
W.R. Grace & Co.a		3,340		306,144
Westlake Chemical Corp.		865		92,918
				20,584,898
COMMERCIAL BANKS — 2.95%
Associated Banc-Corp		7,389		120,145
BancorpSouth Inc.		3,595		79,450
Bank of Hawaii Corp.		1,939		112,423
BB&T Corp.		30,200		1,025,894
BOK Financial Corp.		888		54,372
CapitalSource Inc.		8,805		115,169
Cathay General Bancorp		3,167		78,003
CIT Group Inc.a		8,647		416,440
City National Corp.		2,046		147,537
Comerica Inc.		7,878		341,117
Commerce Bancshares Inc.		3,351		154,180
Cullen/Frost Bankers Inc.		2,257		159,773
East West Bancorp Inc.		6,033		203,252
F.N.B. Corp.		6,618		82,791
Fifth Third Bancorp		38,316		729,153
First Financial Bankshares Inc.		1,334		82,054
First Horizon National Corp.		10,389		110,643
First Niagara Financial Group Inc.		15,436		170,259
First Republic Bank		5,402		275,880
FirstMerit Corp.		7,116		159,825
Fulton Financial Corp.		8,627		105,336
Glacier Bancorp Inc.		3,113		86,012
Hancock Holding Co.		3,407		111,681
Huntington Bancshares Inc.		35,289		310,543
IBERIABANK Corp.		1,288		75,258
International Bancshares Corp.		2,444		55,845
KeyCorp		39,124		490,224
M&T Bank Corp.		5,552		624,767
MB Financial Inc.		2,325		69,053
National Penn Bancshares Inc.		5,091		52,794
Old National Bancorp		4,370		63,540
PNC Financial Services Group Inc. (The)c		22,921		1,685,381
Popular Inc.a		4,450		112,362
PrivateBancorp Inc.		2,934		71,472
Prosperity Bancshares Inc.		2,473		154,439
Regions Financial Corp.		60,085		578,619

Security	Shares		Value
Signature Banka		2,070	$	210,767
SunTrust Banks Inc.		23,272		782,870
Susquehanna Bancshares Inc.		7,918		93,314
SVB Financial Groupa		1,935		185,334
Synovus Financial Corp.		42,401		137,803
TCF Financial Corp.		7,041		106,882
Texas Capital Bancshares Inc.a		1,775		92,389
Trustmark Corp.		2,861		77,705
U.S. Bancorp		79,132		2,956,372
UMB Financial Corp.		1,574		92,740
Umpqua Holdings Corp.		4,911		80,393
United Bankshares Inc.		1,859		54,989
Valley National Bancorp		8,600		83,850
Webster Financial Corp.		3,853		107,460
Wells Fargo & Co.		207,913		8,875,806
Westamerica Bancorp		1,216		62,600
Wintrust Financial Corp.		1,819		79,145
Zions Bancorp		7,948		225,485
				23,571,590
COMMERCIAL SERVICES & SUPPLIES — 0.63%
ABM Industries Inc.		2,189		60,219
ADT Corp. (The)		8,609		373,372
Brink’s Co. (The)		2,026		63,617
Cintas Corp.		4,390		236,050
Clean Harbors Inc.a,b		2,437		150,485
Copart Inc.a		4,899		157,895
Covanta Holding Corp.		5,685		97,612
Deluxe Corp.		2,182		102,750
Healthcare Services Group Inc.		2,903		79,513
Herman Miller Inc.		2,475		75,092
HNI Corp.		2,002		77,778
Iron Mountain Inc.		7,228		191,831
KAR Auction Services Inc.		4,617		137,217
Mine Safety Appliances Co.		1,341		64,583
Pitney Bowes Inc.		8,741		186,533
R.R. Donnelley & Sons Co.		7,788		144,623
Republic Services Inc.		11,688		391,197
Rollins Inc.		2,761		76,314
Stericycle Inc.a		3,721		432,380
Tetra Tech Inc.a		2,785		72,772
Tyco International Ltd.		19,837		725,042
United Stationers Inc.		1,743		77,459
Waste Connections Inc.		5,361		229,129
Waste Management Inc.		18,766		817,072
				5,020,535

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
COMMUNICATIONS EQUIPMENT — 1.65%
ADTRAN Inc.		2,682	$	62,973
ARRIS Group Inc.a		4,944		88,300
Aruba Networks Inc.a,b		5,113		95,920
Brocade Communications Systems Inc.a		19,692		157,930
Ciena Corp.a,b		4,384		102,016
Cisco Systems Inc.		230,724		5,191,290
F5 Networks Inc.a		3,409		277,868
Finisar Corp.a		4,010		92,270
Harris Corp.		4,526		280,431
InterDigital Inc.		1,746		67,657
JDS Uniphase Corp.a		10,156		132,942
Juniper Networks Inc.a		21,778		405,942
Motorola Solutions Inc.		10,186		636,829
Palo Alto Networks Inc.a		1,822		76,815
Plantronics Inc.		1,849		79,396
Polycom Inc.a		7,735		80,444
QUALCOMM Inc.		73,834		5,129,248
Riverbed Technology Inc.a		7,046		104,422
ViaSat Inc.a,b		1,753		115,908
				13,178,601
COMPUTERS & PERIPHERALS — 3.49%
3D Systems Corp.a,b		4,079		253,877
Apple Inc.		39,094		20,420,751
Diebold Inc.		2,732		81,851
Electronics For Imaging Inc.a		2,003		68,723
EMC Corp.		89,606		2,156,816
Hewlett-Packard Co.		82,675		2,014,790
Lexmark International Inc. Class A		2,728		96,980
NCR Corp.a		7,070		258,409
NetApp Inc.		14,727		571,555
SanDisk Corp.		10,347		719,116
Seagate Technology PLC		13,936		678,404
Western Digital Corp.		9,054		630,430
				27,951,702
CONSTRUCTION & ENGINEERING — 0.28%
AECOM Technology Corp.a		4,226		134,302
Chicago Bridge & Iron Co. NV		4,630		343,037
EMCOR Group Inc.		2,853		105,732
Fluor Corp.		7,020		521,024
Foster Wheeler AGa,b		4,185		112,953
Jacobs Engineering Group Inc.a		5,630		342,417
KBR Inc.		6,425		221,920
Quanta Services Inc.a		9,211		278,264

Security	Shares		Value
URS Corp.		3,148	$	170,685
				2,230,334
CONSTRUCTION MATERIALS — 0.09%
Eagle Materials Inc.		2,149		161,197
Martin Marietta Materials Inc.		1,982		194,414
Texas Industries Inc.a		899		48,276
Vulcan Materials Co.		5,607		300,255
				704,142
CONSUMER FINANCE — 0.84%
American Express Co.		39,919		3,265,374
Capital One Financial Corp.		25,236		1,732,956
Cash America International Inc.		1,259		49,668
Discover Financial Services		20,825		1,080,401
Portfolio Recovery Associates Inc.a		2,172		129,125
SLM Corp.		18,775		476,322
				6,733,846
CONTAINERS & PACKAGING — 0.35%
AptarGroup Inc.		2,894		185,679
Avery Dennison Corp.		4,118		194,040
Ball Corp.		6,246		305,367
Bemis Co. Inc.		4,431		176,797
Crown Holdings Inc.a,b		6,017		262,341
Greif Inc. Class A		1,334		71,355
MeadWestvaco Corp.		7,593		264,616
Owens-Illinois Inc.a		7,076		224,946
Packaging Corp. of America		4,282		266,683
Rock-Tenn Co. Class A		3,101		331,838
Sealed Air Corp.		8,339		251,671
Silgan Holdings Inc.		1,954		88,067
Sonoco Products Co.		4,362		177,272
				2,800,672
DISTRIBUTORS — 0.13%
Genuine Parts Co.		6,690		527,372
LKQ Corp.a		12,892		425,823
Pool Corp.		2,005		109,032
				1,062,227
DIVERSIFIED CONSUMER SERVICES — 0.13%
Apollo Group Inc. Class Aa		4,325		115,434
DeVry Inc.		2,470		88,673
H&R Block Inc.		11,719		333,288
Hillenbrand Inc.		2,676		75,517
Outerwall Inc.a,b		1,207		78,431
Service Corp. International		9,158		164,936
Sotheby’s		2,900		150,510

16 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Weight Watchers International Inc.b		1,180	$	37,890
				1,044,679
DIVERSIFIED FINANCIAL SERVICES — 4.34%
Bank of America Corp.		462,257		6,453,108
Berkshire Hathaway Inc. Class Ba		77,450		8,912,946
CBOE Holdings Inc.		3,770		182,845
Citigroup Inc.		130,850		6,382,863
CME Group Inc.		13,458		998,718
ING U.S. Inc.		2,933		90,982
IntercontinentalExchange Inc.a,b		3,141		605,365
J.P. Morgan Chase & Co.		161,970		8,347,934
Leucadia National Corp.		13,613		385,792
McGraw Hill Financial Inc.		11,854		825,987
Moody’s Corp.		8,374		591,707
MSCI Inc. Class Aa		5,195		211,800
NASDAQ OMX Group Inc. (The)		5,072		179,701
NYSE Euronext Inc.		10,524		463,266
PHH Corp.a		2,403		57,792
				34,690,806
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.02%
AT&T Inc.		228,526		8,272,641
CenturyLink Inc.		25,857		875,518
Frontier Communications Corp.b		42,794		188,721
Level 3 Communications Inc.a		7,032		214,828
tw telecom inc.a		6,202		195,487
Verizon Communications Inc.		123,131		6,219,347
Windstream Holdings Inc.		25,612		218,983
				16,185,525
ELECTRIC UTILITIES — 1.70%
ALLETE Inc.		1,572		79,433
American Electric Power Co. Inc.		20,975		982,469
Cleco Corp.		2,604		120,669
Duke Energy Corp.		30,375		2,178,799
Edison International		14,078		690,244
El Paso Electric Co.		1,729		60,809
Entergy Corp.		7,695		498,020
Exelon Corp.		36,871		1,052,298
FirstEnergy Corp.		18,065		684,122
Great Plains Energy Inc.		6,663		156,181
Hawaiian Electric Industries Inc.		4,240		112,657
IDACORP Inc.		2,125		109,650
ITC Holdings Corp.		2,295		230,854
NextEra Energy Inc.		18,282		1,549,399
Northeast Utilities		13,577		582,318
NV Energy Inc.		10,153		241,032

Security	Shares		Value
OGE Energy Corp.		8,519	$	314,351
Pepco Holdings Inc.		10,692		206,142
Pinnacle West Capital Corp.		4,740		265,582
PNM Resources Inc.		3,426		81,950
Portland General Electric Co.		3,238		92,931
PPL Corp.		27,192		832,891
Southern Co. (The)		37,487		1,533,593
UIL Holdings Corp.		2,390		92,063
UNS Energy Corp.		1,789		88,520
Westar Energy Inc.		5,514		174,298
Xcel Energy Inc.		21,485		620,057
				13,631,332
ELECTRICAL EQUIPMENT — 0.83%
Acuity Brands Inc.		1,832		184,134
AMETEK Inc.		10,508		502,598
Babcock & Wilcox Co. (The)		4,852		156,283
Brady Corp. Class A		1,992		58,146
Eaton Corp. PLC		20,330		1,434,485
Emerson Electric Co.		30,751		2,059,394
EnerSys Inc.		2,053		136,217
Generac Holdings Inc.		3,036		149,827
General Cable Corp.		2,148		70,734
Hubbell Inc. Class B		2,306		247,987
Polypore International Inc.a,b		2,040		92,208
Regal Beloit Corp.		1,944		142,553
Rockwell Automation Inc.		5,952		657,160
Roper Industries Inc.		4,273		541,859
Sensata Technologies Holding NVa		5,528		208,019
				6,641,604
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.65%
Amphenol Corp. Class A		6,890		553,198
Anixter International Inc.a		1,157		98,912
Arrow Electronics Inc.a		4,313		207,110
Avnet Inc.		5,960		236,612
Belden Inc.		1,925		129,475
Benchmark Electronics Inc.a		2,383		54,166
Cognex Corp.		3,465		108,281
Corning Inc.		62,863		1,074,329
Dolby Laboratories Inc. Class A		2,058		73,553
FEI Co.		1,810		161,235
FLIR Systems Inc.		5,973		170,111
Ingram Micro Inc. Class Aa		6,501		150,628
IPG Photonics Corp.b		1,543		102,255
Itron Inc.a		1,739		74,203

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Jabil Circuit Inc.		7,903	$	164,857
Littelfuse Inc.		950		80,779
Molex Inc.		6,012		232,063
National Instruments Corp.		4,107		119,308
TE Connectivity Ltd.		17,801		916,573
Tech Data Corp.a		1,631		84,910
Trimble Navigation Ltd.a		10,963		313,213
Universal Display Corp.a,b		1,729		55,155
Vishay Intertechnology Inc.a		5,701		69,951
				5,230,877
ENERGY EQUIPMENT & SERVICES — 2.10%
Atwood Oceanics Inc.a		2,469		131,178
Baker Hughes Inc.		19,011		1,104,349
Bristow Group Inc.		1,560		125,533
Cameron International Corp.a		10,533		577,840
CARBO Ceramics Inc.b		858		107,542
Core Laboratories NV		1,997		373,878
Diamond Offshore Drilling Inc.		3,017		186,843
Dresser-Rand Group Inc.a		3,277		199,143
Dril-Quip Inc.a		1,780		209,008
Ensco PLC Class A		10,043		578,979
Exterran Holdings Inc.a		2,447		69,862
FMC Technologies Inc.a		10,108		510,959
Halliburton Co.		36,388		1,929,656
Helix Energy Solutions Group Inc.a		4,338		102,637
Helmerich & Payne Inc.		4,581		355,257
McDermott International Inc.a		10,191		72,050
Nabors Industries Ltd.		11,176		195,356
National Oilwell Varco Inc.		18,403		1,493,955
Noble Corp.		10,867		409,686
Oceaneering International Inc.		4,692		402,949
Oil States International Inc.a		2,375		257,996
Patterson-UTI Energy Inc.		6,304		152,935
Rowan Companies PLC Class Aa		5,413		195,301
Schlumberger Ltd.		56,947		5,337,073
SEACOR Holdings Inc.		817		79,903
Superior Energy Services Inc.a		6,945		186,334
Tidewater Inc.		2,135		128,570
Transocean Ltd.		14,583		686,422
Unit Corp.a		1,893		97,319
Weatherford International Ltd.a		33,056		543,441
				16,801,954
FOOD & STAPLES RETAILING — 2.12%
Casey’s General Stores Inc.		1,654		120,544
Costco Wholesale Corp.		18,797		2,218,046

Security	Shares		Value
CVS Caremark Corp.		52,850	$	3,290,441
Fresh Market Inc. (The)a		1,801		91,689
Harris Teeter Supermarkets Inc.		2,158		106,433
Kroger Co. (The)		22,308		955,675
Rite Aid Corp.a		36,653		195,360
Safeway Inc.		10,344		361,006
Sysco Corp.		25,326		819,043
United Natural Foods Inc.a,b		2,130		152,188
Wal-Mart Stores Inc.		70,050		5,376,337
Walgreen Co.		37,456		2,218,893
Whole Foods Market Inc.		16,086		1,015,509
				16,921,164
FOOD PRODUCTS — 1.66%
Archer-Daniels-Midland Co.		28,424		1,162,542
B&G Foods Inc. Class A		2,258		76,433
Bunge Ltd.		6,315		518,651
Campbell Soup Co.		7,738		329,407
ConAgra Foods Inc.		18,132		576,779
Darling International Inc.a		5,024		116,909
Dean Foods Co.a		3,993		77,864
Flowers Foods Inc.		7,386		187,161
General Mills Inc.		27,628		1,393,004
Green Mountain Coffee Roasters Inc.a,b		5,584		350,731
Hain Celestial Group Inc.a,b		2,006		166,959
Hershey Co. (The)		6,461		641,190
Hillshire Brands Co.		5,340		175,312
Hormel Foods Corp.		5,807		252,372
Ingredion Inc.		3,340		219,638
J.M. Smucker Co. (The)		4,525		503,225
Kellogg Co.		11,112		702,834
Kraft Foods Group Inc.		25,549		1,389,355
Lancaster Colony Corp.		852		70,707
McCormick & Co. Inc. NVS		5,609		387,862
Mead Johnson Nutrition Co. Class A		8,754		714,852
Mondelez International Inc. Class A		76,636		2,578,035
Post Holdings Inc.a		1,412		60,645
TreeHouse Foods Inc.a		1,560		114,286
Tyson Foods Inc. Class A		11,978		331,431
WhiteWave Foods Co. Class Aa		7,641		152,896
				13,251,080
GAS UTILITIES — 0.26%
AGL Resources Inc.		5,091		243,655
Atmos Energy Corp.		3,864		171,059

18 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
National Fuel Gas Co.		3,632	$	259,870
New Jersey Resources Corp.		1,791		82,440
Northwest Natural Gas Co.		1,136		49,336
ONEOK Inc.		8,867		500,986
Piedmont Natural Gas Co.		3,277		111,877
Questar Corp.		7,598		179,769
South Jersey Industries Inc.		1,373		81,762
Southwest Gas Corp.		1,963		106,512
UGI Corp.		4,889		202,258
WGL Holdings Inc.		2,211		99,517
				2,089,041
HEALTH CARE EQUIPMENT & SUPPLIES — 2.04%
Abbott Laboratories		66,881		2,444,501
Alere Inc.a		3,239		109,251
Align Technology Inc.a,b		3,089		176,258
Baxter International Inc.		23,283		1,533,651
Becton, Dickinson and Co.		8,383		881,305
Boston Scientific Corp.a		57,804		675,729
C.R. Bard Inc.		3,432		467,507
CareFusion Corp.a		9,227		357,731
Cooper Companies Inc. (The)		2,107		272,245
Covidien PLC		19,801		1,269,442
DENTSPLY International Inc.		6,124		288,440
Edwards Lifesciences Corp.a		4,808		313,433
Haemonetics Corp.a,b		2,192		88,907
Hill-Rom Holdings Inc.		2,604		107,519
Hologic Inc.a		11,563		258,896
IDEXX Laboratories Inc.a,b		2,243		241,930
Intuitive Surgical Inc.a		1,708		634,522
Masimo Corp.		2,330		59,695
Medtronic Inc.		42,924		2,463,838
ResMed Inc.b		6,024		311,682
Sirona Dental Systems Inc.a,b		2,447		176,796
St. Jude Medical Inc.		12,386		710,833
Steris Corp.		2,526		114,150
Stryker Corp.		12,745		941,346
Teleflex Inc.		1,755		161,776
Thoratec Corp.a		2,489		107,500
Varian Medical Systems Inc.a		4,580		332,416
West Pharmaceutical Services Inc.		2,966		143,406
Zimmer Holdings Inc.		7,318		640,105
				16,284,810
HEALTH CARE PROVIDERS & SERVICES — 2.09%
Aetna Inc.		16,017		1,004,266
AmerisourceBergen Corp.		9,942		649,511

Security	Shares		Value
Brookdale Senior Living Inc.a		4,244	$	114,927
Cardinal Health Inc.		14,612		857,140
Centene Corp.a,b		2,428		136,356
Chemed Corp.b		830		56,291
Cigna Corp.		12,176		937,308
Community Health Systems Inc.		4,154		181,239
DaVita HealthCare Partners Inc.a		7,509		422,081
Express Scripts Holding Co.a		35,048		2,191,201
HCA Holdings Inc.		11,619		547,720
Health Management Associates Inc. Class Aa		11,114		142,481
Health Net Inc.a		3,424		104,090
HealthSouth Corp.		3,758		131,943
Henry Schein Inc.a		3,686		414,417
Humana Inc.		6,734		620,538
Laboratory Corp. of America Holdingsa		3,879		391,391
LifePoint Hospitals Inc.a		2,027		104,674
Magellan Health Services Inc.a		1,164		68,327
McKesson Corp.		9,858		1,541,200
MEDNAX Inc.a		2,161		235,592
Omnicare Inc.		4,520		249,278
Owens & Minor Inc.		2,748		102,830
Patterson Companies Inc.		3,631		154,354
Quest Diagnostics Inc.b		6,537		391,632
Team Health Holdings Inc.a		3,070		133,361
Tenet Healthcare Corp.a		4,288		202,351
UnitedHealth Group Inc.		43,742		2,985,829
Universal Health Services Inc. Class B		3,849		310,075
VCA Antech Inc.a		3,817		108,594
WellCare Health Plans Inc.a		1,841		122,758
WellPoint Inc.		12,868		1,091,206
				16,704,961
HEALTH CARE TECHNOLOGY — 0.15%
Allscripts Healthcare Solutions Inc.a,b		6,822		94,348
athenahealth Inc.a,b		1,571		209,744
Cerner Corp.a		12,646		708,556
HMS Holdings Corp.a,b		3,761		79,470
Medidata Solutions Inc.a		1,106		122,003
				1,214,121
HOTELS, RESTAURANTS & LEISURE — 1.98%
Bally Technologies Inc.a,b		1,616		118,194
Bob Evans Farms Inc.		1,243		70,963

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Brinker International Inc.		2,851	$	126,641
Carnival Corp.		18,844		652,945
Cheesecake Factory Inc. (The)		2,117		100,028
Chipotle Mexican Grill Inc.a		1,334		702,978
Choice Hotels International Inc.		1,392		64,853
Cracker Barrel Old Country Store Inc.		1,028		112,946
Darden Restaurants Inc.		5,588		287,950
Domino’s Pizza Inc.		2,454		164,565
Dunkin’ Brands Group Inc.		4,651		221,760
Hyatt Hotels Corp. Class Aa		2,564		122,046
International Game Technology		11,024		207,251
Jack in the Box Inc.a,b		1,884		76,641
Las Vegas Sands Corp.		16,735		1,175,132
Life Time Fitness Inc.a,b		1,719		78,077
Marriott International Inc. Class A		9,787		441,198
Marriott Vacations Worldwide Corp.a		1,260		63,101
McDonald’s Corp.		42,967		4,147,175
MGM Resorts Internationala		14,332		272,881
Norwegian Cruise Line Holdings Ltd.a,b		1,864		59,685
Panera Bread Co. Class Aa		1,218		192,347
Papa John’s International Inc.		728		55,088
Penn National Gaming Inc.a,b		2,887		168,918
Royal Caribbean Cruises Ltd.		7,077		297,517
Six Flags Entertainment Corp.		4,135		155,517
Starbucks Corp.		32,337		2,620,914
Starwood Hotels & Resorts Worldwide Inc.		8,386		617,377
Vail Resorts Inc.		1,547		108,986
Wendy’s Co. (The)		12,166		105,723
Wyndham Worldwide Corp.		5,724		380,074
Wynn Resorts Ltd.		3,500		581,875
Yum! Brands Inc.		19,209		1,298,913
				15,850,259
HOUSEHOLD DURABLES — 0.47%
D.R. Horton Inc.		12,076		228,840
Garmin Ltd.		5,368		250,954
Harman International Industries Inc.		2,933		237,632
Jarden Corp.a		5,159		285,602
Leggett & Platt Inc.		6,166		183,377
Lennar Corp. Class A		7,093		252,156
M.D.C. Holdings Inc.		1,681		49,068

Security	Shares		Value
Mohawk Industries Inc.a		2,630	$	348,265
Newell Rubbermaid Inc.		12,423		368,094
NVR Inc.a		183		167,870
PulteGroup Inc.		15,249		269,145
Ryland Group Inc. (The)		2,051		82,450
Tempur Sealy International Inc.a		2,581		98,981
Toll Brothers Inc.a		6,500		213,720
Tupperware Brands Corp.		2,225		199,471
Whirlpool Corp.		3,399		496,288
				3,731,913
HOUSEHOLD PRODUCTS — 1.86%
Church & Dwight Co. Inc.		5,984		389,858
Clorox Co. (The)		5,614		506,327
Colgate-Palmolive Co.		37,943		2,456,050
Energizer Holdings Inc.		2,674		262,346
Kimberly-Clark Corp.		16,490		1,780,920
Procter & Gamble Co. (The)		117,847		9,516,145
				14,911,646
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.15%
AES Corp. (The)		26,694		376,118
Calpine Corp.a		15,677		316,205
Dynegy Inc.a,b		4,251		82,597
NRG Energy Inc.		13,956		398,165
				1,173,085
INDUSTRIAL CONGLOMERATES — 2.13%
3M Co.		27,907		3,512,096
Carlisle Companies Inc.		2,762		200,742
Danaher Corp.		25,677		1,851,055
General Electric Co.		438,205		11,454,679
				17,018,572
INSURANCE — 3.30%
ACE Ltd.		14,641		1,397,337
Aflac Inc.		20,020		1,300,900
Alleghany Corp.a		728		295,146
Allied World Assurance Co. Holdings Ltd.		1,508		163,301
Allstate Corp. (The)		19,950		1,058,547
American Financial Group Inc.		3,064		172,381
American International Group Inc.		63,519		3,280,756
Aon PLC		13,236		1,046,835
Arch Capital Group Ltd.a,b		5,054		292,930
Argo Group International Holdings Ltd.		1,194		50,124

20 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Arthur J. Gallagher & Co.		5,409	$	256,657
Aspen Insurance Holdings Ltd.		3,020		117,810
Assurant Inc.		3,227		188,715
Assured Guaranty Ltd.		7,270		149,035
Axis Capital Holdings Ltd.		4,576		216,994
Brown & Brown Inc.		5,097		162,747
Chubb Corp. (The)		10,877		1,001,554
Cincinnati Financial Corp.		6,345		317,250
CNO Financial Group Inc.		9,605		149,646
Endurance Specialty Holdings Ltd.		1,868		103,282
Erie Indemnity Co. Class A		1,102		79,146
Everest Re Group Ltd.		2,094		321,932
Fidelity National Financial Inc. Class A		9,285		261,373
First American Financial Corp.		4,647		120,171
Genworth Financial Inc. Class Aa		21,284		309,256
Hanover Insurance Group Inc. (The)		1,962		114,855
Hartford Financial Services Group Inc. (The)		19,690		663,553
HCC Insurance Holdings Inc.		4,342		198,212
Kemper Corp.		2,132		78,927
Lincoln National Corp.		11,385		516,993
Loews Corp.		13,171		636,291
Markel Corp.a,b		593		314,094
Marsh & McLennan Companies Inc.		23,657		1,083,491
MBIA Inc.a		6,110		69,471
Mercury General Corp.		1,328		61,832
MetLife Inc.		48,094		2,275,327
Montpelier Re Holdings Ltd.b		2,023		55,855
Old Republic International Corp.		10,447		175,405
PartnerRe Ltd.		2,043		204,729
Platinum Underwriters Holdings Ltd.		1,264		78,608
Primerica Inc.		2,433		104,497
Principal Financial Group Inc.		11,719		556,184
ProAssurance Corp.		2,663		120,687
Progressive Corp. (The)		23,663		614,528
Protective Life Corp.		3,377		155,612
Prudential Financial Inc.		20,015		1,629,021
Reinsurance Group of America Inc.		3,056		217,526
RenaissanceRe Holdings Ltd.		1,872		175,425
RLI Corp.		751		70,954
Selective Insurance Group Inc.		2,394		62,890
StanCorp Financial Group Inc.		1,904		112,146
Torchmark Corp.		3,903		284,373
Travelers Companies Inc. (The)		15,971		1,378,297

Security	Shares		Value
Unum Group		11,347	$	360,154
Validus Holdings Ltd.		4,591		181,253
W.R. Berkley Corp.		4,758		208,924
White Mountains Insurance Group Ltd.		237		138,425
Willis Group Holdings PLC		7,484		337,304
XL Group PLC		12,430		379,985
				26,429,653
INTERNET & CATALOG RETAIL — 1.33%
Amazon.com Inc.a		15,925		5,797,178
Expedia Inc.		4,528		266,609
Groupon Inc.a,b		15,634		142,738
HSN Inc.		1,428		74,827
Liberty Interactive Corp. Series Aa		20,834		561,685
Liberty Ventures Series Aa		1,489		159,874
Netflix Inc.a		2,548		821,679
Priceline.com Inc.a		2,216		2,335,287
Shutterfly Inc.a,b		1,537		75,528
TripAdvisor Inc.a,b		4,759		393,617
				10,629,022
INTERNET SOFTWARE & SERVICES — 2.87%
Akamai Technologies Inc.a		7,726		345,661
AOL Inc.a		3,293		119,338
CoStar Group Inc.a,b		1,214		214,866
eBay Inc.a		50,146		2,643,196
Equinix Inc.a		2,108		340,400
Facebook Inc. Class Aa		70,285		3,532,524
Google Inc. Class Aa		12,038		12,406,122
IAC/InterActiveCorp		3,352		178,963
j2 Global Inc.		1,864		102,483
LinkedIn Corp. Class Aa		3,889		869,853
OpenTable Inc.a		1,007		69,966
Pandora Media Inc.a		6,765		170,004
Rackspace Hosting Inc.a		4,937		252,922
ValueClick Inc.a		3,075		59,071
VeriSign Inc.a		5,809		315,313
Yahoo! Inc.a		40,846		1,345,059
				22,965,741
IT SERVICES — 3.36%
Accenture PLC Class A		27,763		2,040,581
Acxiom Corp.a		3,191		106,037
Alliance Data Systems Corp.a,b		2,099		497,589
Amdocs Ltd.		6,990		268,766
Automatic Data Processing Inc.		20,786		1,558,326
Broadridge Financial Solutions Inc.		4,998		175,730

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
CACI International Inc. Class Aa,b		996	$	71,692
Cognizant Technology Solutions Corp. Class Aa		12,931		1,124,092
Computer Sciences Corp.		6,357		313,146
Convergys Corp.		4,607		90,942
CoreLogic Inc.a		4,179		139,035
DST Systems Inc.		1,309		110,964
Euronet Worldwide Inc.a		2,080		90,272
Fidelity National Information Services Inc.		12,469		607,864
Fiserv Inc.a		5,600		586,488
FleetCor Technologies Inc.a		3,089		356,316
Gartner Inc.a		4,031		237,627
Genpact Ltd.a		4,843		96,037
Global Payments Inc.		3,195		190,039
International Business Machines Corp.		44,307		7,940,257
Jack Henry & Associates Inc.		3,684		201,183
Leidos Holdings Inc.		3,183		149,887
Lender Processing Services Inc.		3,636		125,515
MasterCard Inc. Class A		4,464		3,201,134
MAXIMUS Inc.		2,944		142,637
NeuStar Inc. Class Aa,b		2,721		124,948
Paychex Inc.		13,986		591,048
Science Applications International Corp.		1,737		61,229
Teradata Corp.a		6,982		307,697
Total System Services Inc.		7,249		216,238
Vantiv Inc. Class Aa,b		4,713		129,608
VeriFone Systems Inc.a		4,567		103,488
Visa Inc. Class A		22,230		4,371,974
Western Union Co.		23,524		400,379
WEX Inc.a		1,652		154,214
				26,882,979
LEISURE EQUIPMENT & PRODUCTS — 0.18%
Brunswick Corp.		3,898		175,917
Hasbro Inc.		4,990		257,733
Mattel Inc.		14,831		658,051
Polaris Industries Inc.		2,748		359,851
				1,451,552
LIFE SCIENCES TOOLS & SERVICES — 0.60%
Agilent Technologies Inc.		14,239		722,772
Bio-Rad Laboratories Inc. Class Aa,b		870		107,462
Charles River Laboratories International Inc.a		2,084		102,554

Security	Shares		Value
Covance Inc.a,b		2,381	$	212,528
Illumina Inc.a,b		5,378		502,897
Life Technologies Corp.a		7,431		559,628
Mettler-Toledo International Inc.a,b		1,278		316,254
PAREXEL International Corp.a,b		2,512		114,823
PerkinElmer Inc.		4,877		185,521
TECHNE Corp.		1,384		120,948
Thermo Fisher Scientific Inc.		15,532		1,518,719
Waters Corp.a		3,625		365,835
				4,829,941
MACHINERY — 2.06%
Actuant Corp. Class A		3,154		118,464
AGCO Corp.		3,898		227,565
Caterpillar Inc.		27,386		2,282,897
Chart Industries Inc.a		1,296		139,281
CLARCOR Inc.		2,169		126,843
Colfax Corp.a,b		3,799		212,592
Crane Co.		2,083		132,270
Cummins Inc.		7,496		952,142
Deere & Co.		16,483		1,348,969
Donaldson Co. Inc.		5,861		232,154
Dover Corp.		7,299		669,975
Flowserve Corp.		6,053		420,502
Graco Inc.		2,604		201,185
Harsco Corp.		3,462		96,521
IDEX Corp.		3,571		246,935
Illinois Tool Works Inc.		17,738		1,397,577
Ingersoll-Rand PLC		11,651		786,792
ITT Corp.		3,988		158,443
Joy Global Inc.		4,616		261,958
Kennametal Inc.		3,410		156,860
Lincoln Electric Holdings Inc.		3,479		240,886
Manitowoc Co. Inc. (The)		5,724		111,389
Middleby Corp. (The)a,b		804		183,031
Mueller Industries Inc.		1,210		72,951
Navistar International Corp.a,b		2,897		104,755
Nordson Corp.		2,576		185,704
Oshkosh Corp.a		3,774		179,605
PACCAR Inc.		15,266		848,790
Pall Corp.		4,801		386,576
Parker Hannifin Corp.		6,444		752,144
Pentair Ltd. Registered		8,573		575,163
Snap-on Inc.		2,498		259,967
SPX Corp.		1,920		174,163
Stanley Black & Decker Inc.		6,890		544,930

22 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Terex Corp.a		4,784	$	167,201
Timken Co. (The)		3,439		181,614
Toro Co. (The)		2,379		140,218
Trinity Industries Inc.		3,415		172,901
Valmont Industries Inc.		1,118		157,079
WABCO Holdings Inc.a		2,728		233,735
Wabtec Corp.		4,121		268,648
Woodward Inc.		2,614		104,795
Xylem Inc.		8,044		277,518
				16,493,688
MARINE — 0.03%
Kirby Corp.a		2,452		216,977
Matson Inc.		1,842		49,900
				266,877
MEDIA — 3.72%
AMC Networks Inc. Class Aa		2,505		175,576
Cablevision NY Group Class A		9,263		144,040
CBS Corp. Class B NVS		24,215		1,432,075
Charter Communications Inc. Class Aa,b		2,903		389,699
Cinemark Holdings Inc.		4,422		145,086
Comcast Corp. Class A		112,559		5,355,557
DIRECTVa		21,986		1,373,905
Discovery Communications Inc. Series Aa		9,938		883,687
DISH Network Corp. Class A		8,975		432,595
DreamWorks Animation SKG Inc. Class Aa,b		3,097		106,041
Gannett Co. Inc.		9,926		274,653
Interpublic Group of Companies Inc. (The)		17,995		302,316
John Wiley & Sons Inc. Class A		1,977		99,423
Lamar Advertising Co. Class Aa		2,890		132,102
Liberty Global PLC Series Aa		16,102		1,261,914
Liberty Media Corp.a		4,564		697,881
Live Nation Entertainment Inc.a		6,098		118,545
Madison Square Garden Inc. Class Aa		2,659		160,923
Meredith Corp.		1,566		80,336
Morningstar Inc.		949		76,195
New York Times Co. (The) Class A		5,474		75,705
News Corp. Class A NVSa		21,445		377,432
Omnicom Group Inc.		11,003		749,414
Regal Entertainment Group Class A		3,421		65,033

Security	Shares		Value
Scripps Networks Interactive Inc. Class A		4,645	$	373,923
Sinclair Broadcast Group Inc. Class A		3,230		103,554
Sirius XM Radio Inc.		135,239		509,851
Starz Series Aa		4,128		124,459
Time Warner Cable Inc.		12,302		1,478,085
Time Warner Inc.		39,589		2,721,348
Twenty-First Century Fox Inc. Class A		85,453		2,912,238
Viacom Inc. Class B NVS		18,680		1,555,857
Walt Disney Co. (The)		71,523		4,905,763
Washington Post Co. (The) Class B		195		125,447
				29,720,658
METALS & MINING — 0.62%
Alcoa Inc.		46,197		428,246
Allegheny Technologies Inc.		4,644		153,716
Carpenter Technology Corp.		2,337		138,654
Cliffs Natural Resources Inc.b		6,543		168,024
Coeur Mining Inc.a		4,495		54,884
Commercial Metals Co.		4,960		91,066
Compass Minerals International Inc.		1,413		105,226
Freeport-McMoRan Copper & Gold Inc.		44,763		1,645,488
Kaiser Aluminum Corp.		842		56,793
Newmont Mining Corp.		21,467		585,190
Nucor Corp.		13,727		710,647
Reliance Steel & Aluminum Co.		3,293		241,344
Royal Gold Inc.		2,812		135,089
Steel Dynamics Inc.		9,510		170,895
Stillwater Mining Co.a		4,931		53,797
United States Steel Corp.b		6,235		155,189
Worthington Industries Inc.		2,325		94,256
				4,988,504
MULTI-UTILITIES — 1.09%
Alliant Energy Corp.		4,797		250,499
Ameren Corp.		10,481		379,203
Avista Corp.		2,584		71,809
Black Hills Corp.		1,912		96,977
CenterPoint Energy Inc.		18,489		454,829
CMS Energy Corp.		11,379		312,467
Consolidated Edison Inc.		12,642		736,017
Dominion Resources Inc.		24,839		1,583,486

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
DTE Energy Co.		7,572	$	523,528
Integrys Energy Group Inc.		3,388		198,808
MDU Resources Group Inc.		8,203		244,285
NiSource Inc.		13,445		423,786
NorthWestern Corp.		1,609		73,757
PG&E Corp.		19,158		801,762
Public Service Enterprise Group Inc.		21,845		731,808
SCANA Corp.		5,988		279,221
Sempra Energy		9,760		889,526
TECO Energy Inc.		8,822		151,474
Vectren Corp.		3,553		124,071
Wisconsin Energy Corp.		9,854		414,952
				8,742,265
MULTILINE RETAIL — 0.68%
Big Lots Inc.a		2,482		90,246
Dillard’s Inc. Class A		1,037		85,013
Dollar General Corp.a		12,815		740,451
Dollar Tree Inc.a		9,637		562,801
Family Dollar Stores Inc.		4,164		286,816
J.C. Penney Co. Inc.a,b		13,077		98,078
Kohl’s Corp.		8,811		500,465
Macy’s Inc.		16,195		746,751
Nordstrom Inc.		6,207		375,337
Saks Inc.a		4,379		70,020
Sears Holdings Corp.a,b		1,945		112,966
Target Corp.		27,166		1,760,085
				5,429,029
OFFICE ELECTRONICS — 0.08%
Xerox Corp.		49,871		495,718
Zebra Technologies Corp. Class Aa		2,235		107,973
				603,691
OIL, GAS & CONSUMABLE FUELS — 7.73%
Alpha Natural Resources Inc.a		9,466		66,262
Anadarko Petroleum Corp.		21,658		2,063,791
Apache Corp.		17,324		1,538,371
Berry Petroleum Co. Class A		2,181		104,143
Cabot Oil & Gas Corp.		18,186		642,329
Cheniere Energy Inc.a		9,557		380,369
Chesapeake Energy Corp.		21,808		609,752
Chevron Corp.		83,134		9,972,755
Cimarex Energy Co.		3,734		393,377
Cobalt International Energy Inc.a		12,545		291,169
Concho Resources Inc.a		4,518		499,736
ConocoPhillips		52,621		3,857,119

Security	Shares		Value
CONSOL Energy Inc.		9,857	$	359,780
Continental Resources Inc.a		1,837		209,234
Denbury Resources Inc.a		16,136		306,423
Devon Energy Corp.		16,460		1,040,601
Energen Corp.		3,103		243,027
Energy XXI (Bermuda) Ltd.b		3,126		90,842
EOG Resources Inc.		11,722		2,091,205
EQT Corp.		6,503		556,722
EXCO Resources Inc.		6,470		35,003
Exxon Mobil Corp.		189,405		16,974,476
Gulfport Energy Corp.a		3,400		199,546
Hess Corp.		12,417		1,008,260
HollyFrontier Corp.		8,585		395,425
Kinder Morgan Inc.		28,842		1,018,411
Kodiak Oil & Gas Corp.a		11,626		150,789
Marathon Oil Corp.		30,549		1,077,158
Marathon Petroleum Corp.		13,477		965,762
Murphy Oil Corp.		7,563		456,200
Newfield Exploration Co.a		5,839		177,798
Noble Energy Inc.		15,496		1,161,115
Oasis Petroleum Inc.a		3,900		207,675
Occidental Petroleum Corp.		34,668		3,330,901
Peabody Energy Corp.		11,650		226,942
Phillips 66		26,300		1,694,509
Pioneer Natural Resources Co.		5,956		1,219,670
QEP Resources Inc.		7,714		255,025
Range Resources Corp.		7,034		532,544
Rosetta Resources Inc.a		2,708		162,317
SandRidge Energy Inc.a,b		14,940		94,720
SemGroup Corp. Class A		1,797		108,521
SM Energy Co.		2,894		256,437
Southwestern Energy Co.a		15,164		564,404
Spectra Energy Corp.		28,812		1,024,843
Teekay Corp.		1,622		70,443
Tesoro Corp.		5,732		280,237
Ultra Petroleum Corp.a,b		6,518		119,670
Valero Energy Corp.		23,264		957,779
Western Refining Inc.		2,484		80,159
Whiting Petroleum Corp.a		5,094		340,738
Williams Companies Inc. (The)		29,408		1,050,160
World Fuel Services Corp.		3,118		118,952
WPX Energy Inc.a		8,646		191,422
				61,825,018
PAPER & FOREST PRODUCTS — 0.14%
Domtar Corp.		1,388		117,578
International Paper Co.		19,275		859,858

24 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Louisiana-Pacific Corp.a		6,015	$	102,315
Resolute Forest Products Inc.a,b		4,156		66,454
				1,146,205
PERSONAL PRODUCTS — 0.20%
Avon Products Inc.		18,595		325,412
Estee Lauder Companies Inc. (The) Class A		10,936		776,019
Herbalife Ltd.b		3,638		235,815
Nu Skin Enterprises Inc. Class A		2,549		298,055
				1,635,301
PHARMACEUTICALS — 5.11%
AbbVie Inc.		68,213		3,304,920
Actavis PLCa		7,450		1,151,621
Allergan Inc.		12,719		1,152,469
Bristol-Myers Squibb Co.		70,833		3,720,149
Eli Lilly and Co.		42,686		2,126,617
Endo Health Solutions Inc.a		4,987		218,082
Forest Laboratories Inc.a		10,122		476,038
Hospira Inc.a		7,143		289,434
Impax Laboratories Inc.a		2,807		56,870
Jazz Pharmaceuticals PLCa		2,257		204,800
Johnson & Johnson		121,261		11,229,981
Mallinckrodt PLCa		2,534		106,453
Merck & Co. Inc.		125,916		5,677,552
Mylan Inc.a		16,482		624,173
Nektar Therapeuticsa,b		4,847		46,095
Perrigo Co.		4,079		562,453
Pfizer Inc.		284,865		8,739,658
Questcor Pharmaceuticals Inc.		2,349		144,158
Salix Pharmaceuticals Ltd.a		2,701		193,797
ViroPharma Inc.a,b		2,819		109,434
VIVUS Inc.a,b		4,307		40,443
Zoetis Inc.		21,614		684,299
				40,859,496
PROFESSIONAL SERVICES — 0.34%
Acacia Research Corp.		2,189		33,032
Advisory Board Co. (The)a,b		1,491		102,283
Corporate Executive Board Co. (The)		1,428		104,101
Dun & Bradstreet Corp. (The)		1,669		181,570
Equifax Inc.		5,204		336,543
FTI Consulting Inc.a,b		1,780		72,232
IHS Inc. Class Aa		2,614		285,057
Manpowergroup Inc.		3,309		258,433
Nielsen Holdings NV		9,267		365,490

Security	Shares		Value
Robert Half International Inc.		6,026	$	232,182
Towers Watson & Co. Class A		2,797		321,124
Verisk Analytics Inc. Class Aa		6,434		440,858
				2,732,905
REAL ESTATE INVESTMENT TRUSTS (REITs) — 3.13%
Alexandria Real Estate Equities Inc.b		3,104		204,181
American Campus Communities Inc.		4,521		156,246
American Capital Agency Corp.		16,939		367,915
American Realty Capital Properties Inc.		7,992		106,054
American Tower Corp.		17,002		1,349,109
Annaly Capital Management Inc.		40,970		483,036
Apartment Investment and Management Co. Class A		6,328		177,058
ARMOUR Residential REIT Inc.		16,134		66,472
AvalonBay Communities Inc.		5,244		655,762
BioMed Realty Trust Inc.		8,414		167,607
Boston Properties Inc.		6,549		677,822
Brandywine Realty Trust		6,866		97,703
BRE Properties Inc. Class A		3,322		181,415
Camden Property Trust		3,663		235,165
CBL & Associates Properties Inc.		7,504		148,654
Chimera Investment Corp.		44,021		133,384
Cole Real Estate Investment Inc.		18,177		258,113
CommonWealth REIT		4,705		114,661
Corporate Office Properties Trust		3,732		91,807
Corrections Corp. of America		4,851		179,487
CubeSmart		5,319		97,178
CYS Investments Inc.		7,558		64,168
DCT Industrial Trust Inc.		13,511		104,710
DDR Corp.		11,059		187,450
DiamondRock Hospitality Co.b		8,340		94,993
Digital Realty Trust Inc.b		5,546		264,322
Douglas Emmett Inc.		5,677		141,528
Duke Realty Corp.		13,895		230,240
DuPont Fabros Technology Inc.b		2,858		71,021
EastGroup Properties Inc.		1,308		83,267
EPR Propertiesb		2,174		111,678
Equity Lifestyle Properties, Inc.		3,365		127,836
Equity Residential		14,334		750,528
Essex Property Trust Inc.		1,637		263,557
Extra Space Storage Inc.		4,602		211,646
Federal Realty Investment Trust		2,807		290,805

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Franklin Street Properties Corp.		3,840	$	50,688
General Growth Properties Inc.		24,010		509,732
GEO Group Inc. (The)		3,034		107,009
Hatteras Financial Corp.		4,289		78,060
HCP Inc.b		19,590		812,985
Health Care REIT Inc.b		12,292		797,136
Healthcare Realty Trust Inc.		4,182		100,410
Highwoods Properties Inc.b		3,872		149,459
Home Properties Inc.b		2,427		146,372
Hospitality Properties Trust		5,927		174,135
Host Hotels & Resorts Inc.		32,176		596,865
Invesco Mortgage Capital Inc.		5,629		86,968
Kilroy Realty Corp.		3,564		189,462
Kimco Realty Corp.		17,567		377,339
LaSalle Hotel Properties		4,128		128,174
Lexington Realty Trust		7,668		89,716
Liberty Property Trustb		6,118		227,529
Macerich Co. (The)		6,094		360,826
Mack-Cali Realty Corp.		3,608		74,181
Medical Properties Trust Inc.b		7,143		93,145
MFA Financial Inc.		15,316		113,492
Mid-America Apartment Communities Inc.b		3,255		216,132
National Retail Properties Inc.b		5,303		182,423
Omega Healthcare Investors Inc.b		5,146		171,053
Piedmont Office Realty Trust Inc. Class Ab		7,250		133,980
Plum Creek Timber Co. Inc.		7,013		318,390
Post Properties Inc.		2,357		107,809
Potlatch Corp.		1,719		70,187
Prologis Inc.		21,512		859,404
Public Storage		6,220		1,038,553
Rayonier Inc.		5,391		253,485
Realty Income Corp.		8,242		343,279
Redwood Trust Inc.b		3,532		61,881
Regency Centers Corp.		3,907		201,836
Retail Properties of America Inc. Class A		7,494		107,239
RLJ Lodging Trust		5,185		130,973
Ryman Hospitality Properties Inc.		2,199		81,165
Senior Housing Properties Trust		8,123		200,151
Simon Property Group Inc.		13,355		2,064,015
SL Green Realty Corp.		3,697		349,625
Sovran Self Storage Inc.		1,314		100,508
Spirit Realty Capital Inc.		15,482		161,942

Security	Shares		Value
Starwood Property Trust Inc.		8,202	$	210,709
Sunstone Hotel Investors Inc.		6,803		90,140
Tanger Factory Outlet Centers Inc.		4,021		140,132
Taubman Centers Inc.		2,751		180,988
Two Harbors Investment Corp.		15,884		148,198
UDR Inc.		10,838		268,891
Ventas Inc.		12,596		821,763
Vornado Realty Trust		7,431		661,805
Washington Real Estate Investment Trust		2,820		73,912
Weingarten Realty Investorsb		4,787		151,892
Weyerhaeuser Co.		25,176		765,350
WP Carey Inc.		2,471		164,593
				25,042,664
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.16%
Alexander & Baldwin Inc.a		1,857		68,709
Altisource Portfolio Solutions SAa		765		120,319
CBRE Group Inc. Class Aa		11,935		277,250
Forest City Enterprises Inc. Class Aa		6,612		133,959
Howard Hughes Corp. (The)a		1,319		154,389
Jones Lang LaSalle Inc.		1,905		181,356
Realogy Holdings Corp.a		6,288		258,688
St. Joe Co. (The)a,b		3,856		71,992
				1,266,662
ROAD & RAIL — 0.92%
Avis Budget Group Inc.a		4,635		145,214
Con-way Inc.		2,375		97,850
CSX Corp.		43,857		1,142,913
Genesee & Wyoming Inc. Class Aa		1,839		183,606
Hertz Global Holdings Inc.a		16,073		369,036
J.B. Hunt Transport Services Inc.		3,890		291,867
Kansas City Southern Industries Inc.		4,743		576,369
Landstar System Inc.		2,027		112,073
Norfolk Southern Corp.		13,429		1,155,163
Old Dominion Freight Line Inc.a		3,022		141,732
Ryder System Inc.		2,195		144,497
Union Pacific Corp.		19,957		3,021,490
				7,381,810
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.10%
Advanced Micro Devices Inc.a,b		26,223		87,585
Altera Corp.		13,815		464,184
Analog Devices Inc.		13,403		660,768

26 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Applied Materials Inc.		51,845	$	925,433
Atmel Corp.a		18,978		138,160
Avago Technologies Ltd.		10,699		486,056
Broadcom Corp. Class A		23,488		627,599
Cavium Inc.a		2,173		87,594
Cirrus Logic Inc.a		2,779		62,333
Cree Inc.a		5,203		316,082
Cypress Semiconductor Corp.a		5,822		54,028
Fairchild Semiconductor International Inc.a		5,453		69,089
First Solar Inc.a,b		3,033		152,469
Hittite Microwave Corp.a		1,309		83,632
Integrated Device Technology Inc.a		6,223		66,213
Intel Corp.		214,425		5,238,403
International Rectifier Corp.a		2,954		76,922
KLA-Tencor Corp.		7,178		470,877
Lam Research Corp.a		7,014		380,369
Linear Technology Corp.		10,048		413,375
LSI Corp.		23,749		201,391
Marvell Technology Group Ltd.		17,582		210,984
Maxim Integrated Products Inc.		12,634		375,230
Microchip Technology Inc.		8,448		362,926
Micron Technology Inc.a		44,902		793,867
Microsemi Corp.a,b		4,031		101,299
NVIDIA Corp.		24,993		379,394
ON Semiconductor Corp.a		19,369		136,745
PMC-Sierra Inc.a		8,477		49,760
RF Micro Devices Inc.a		11,779		61,840
Semtech Corp.a,b		2,809		87,388
Silicon Laboratories Inc.a,b		1,638		65,880
Skyworks Solutions Inc.a		7,896		203,559
SunEdison Inc.a		10,850		100,905
Synaptics Inc.a		1,390		64,635
Teradyne Inc.a,b		8,223		143,820
Texas Instruments Inc.		47,399		1,994,550
Veeco Instruments Inc.a,b		1,670		48,781
Xilinx Inc.		11,477		521,285
				16,765,410
SOFTWARE — 3.48%
ACI Worldwide Inc.a,b		1,728		95,247
Activision Blizzard Inc.		18,285		304,262
Adobe Systems Inc.a		20,107		1,089,799
ANSYS Inc.a,b		4,014		351,024
Aspen Technology Inc.a,b		4,043		154,564
Autodesk Inc.a		9,485		378,546

Security	Shares		Value
CA Inc.		14,082	$	447,244
Cadence Design Systems Inc.a,b		12,131		157,339
Citrix Systems Inc.a		8,044		456,738
CommVault Systems Inc.a		1,853		144,682
Compuware Corp.		9,168		97,914
Concur Technologies Inc.a,b		2,050		214,430
Electronic Arts Inc.a		13,295		348,994
FactSet Research Systems Inc.b		1,757		191,408
Fair Isaac Corp.		1,552		88,899
Fortinet Inc.a		5,736		115,351
Guidewire Software Inc.a,b		2,548		129,235
Informatica Corp.a		4,659		179,837
Intuit Inc.		12,833		916,405
Mentor Graphics Corp.		4,087		90,241
MICROS Systems Inc.a,b		3,274		177,615
Microsoft Corp.		326,177		11,530,357
NetSuite Inc.a,b		1,297		130,841
Nuance Communications Inc.a		11,413		177,586
Oracle Corp.		153,461		5,140,943
Progress Software Corp.a		2,500		64,900
PTC Inc.a		5,166		143,202
QLIK Technologies Inc.a		3,636		92,136
Red Hat Inc.a		8,128		351,699
Rovi Corp.a		4,451		74,599
Salesforce.com Inc.a		23,521		1,255,081
ServiceNow Inc.a,b		4,357		237,936
SolarWinds Inc.a		2,900		104,951
Solera Holdings Inc.		2,978		167,423
Splunk Inc.a,b		3,358		210,580
SS&C Technologies Holdings Inc.a		2,651		104,184
Symantec Corp.		30,229		687,407
Synopsys Inc.a		6,645		242,210
Take-Two Interactive Software Inc.a		3,878		69,455
TIBCO Software Inc.a		6,717		164,970
TiVo Inc.a		5,221		69,387
Tyler Technologies Inc.a		1,250		120,888
Ultimate Software Group Inc. (The)a,b		1,205		186,148
VMware Inc. Class Aa		3,706		301,224
Workday Inc. Class Aa,b		1,279		95,759
				27,853,640
SPECIALTY RETAIL — 2.47%
Aaron’s Inc.		3,387		96,089
Abercrombie & Fitch Co. Class A		3,232		121,135

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
Advance Auto Parts Inc.		3,092	$	306,665
Aeropostale Inc.a,b		3,481		32,339
American Eagle Outfitters Inc.		7,168		111,032
ANN INC.a		2,092		73,973
Ascena Retail Group Inc.a		5,466		108,172
AutoNation Inc.a		2,674		128,967
AutoZone Inc.a		1,528		664,206
Bed Bath & Beyond Inc.a		9,332		721,550
Best Buy Co. Inc.		11,513		492,756
Buckle Inc. (The)		1,164		56,966
Cabela’s Inc.a		1,976		117,216
CarMax Inc.a		9,623		452,185
Chico’s FAS Inc.		6,682		114,596
Children’s Place Retail Stores Inc. (The)a		1,021		55,736
CST Brands Inc.		2,631		84,824
Dick’s Sporting Goods Inc.		4,282		227,845
DSW Inc. Class A		1,514		132,732
Express Inc.a		3,889		90,264
Foot Locker Inc.		6,264		217,361
GameStop Corp. Class A		5,032		275,854
Gap Inc. (The)		11,873		439,182
Genesco Inc.a,b		1,057		71,992
GNC Holdings Inc. Class A		4,293		252,514
Group 1 Automotive Inc.		922		59,008
Guess? Inc.		2,651		82,844
Home Depot Inc. (The)		61,672		4,803,632
L Brands Inc.		10,488		656,654
Lowe’s Companies Inc.		45,261		2,253,093
Lumber Liquidators Holdings Inc.a		1,189		135,772
Men’s Wearhouse Inc. (The)		2,064		87,307
Murphy USA Inc.a		1,956		79,375
O’Reilly Automotive Inc.a		4,673		578,564
PetSmart Inc.		4,468		325,092
Pier 1 Imports Inc.		4,689		97,906
Rent-A-Center Inc.		2,299		78,718
Ross Stores Inc.		9,328		721,521
Sally Beauty Holdings Inc.a		6,370		167,658
Signet Jewelers Ltd.		3,471		259,145
Staples Inc.		28,516		459,678
Tiffany & Co.		4,736		374,949
TJX Companies Inc. (The)		30,779		1,871,055
Tractor Supply Co.		5,990		427,387
Ulta Salon, Cosmetics & Fragrance Inc.a		2,773		357,301
Urban Outfitters Inc.a		4,726		179,021

Security	Shares		Value
Vitamin Shoppe Inc.a,b		1,314	$	61,640
Williams-Sonoma Inc.		3,892		204,097
				19,767,568
TEXTILES, APPAREL & LUXURY GOODS — 0.91%
Carter’s Inc.		2,484		171,769
Coach Inc.		12,128		614,647
Crocs Inc.a		3,813		46,442
Deckers Outdoor Corp.a,b		1,485		102,213
Fifth & Pacific Companies Inc.a		5,178		137,165
Fossil Group Inc.a		2,163		274,571
Hanesbrands Inc.		4,250		289,510
Iconix Brand Group Inc.a,b		2,467		89,034
Lululemon Athletica Inc.a,b		4,471		308,723
Michael Kors Holdings Ltd.a		7,712		593,438
Nike Inc. Class B		32,119		2,433,335
PVH Corp.		3,500		435,995
Ralph Lauren Corp.		2,628		435,302
Steven Madden Ltd.a		2,661		97,606
Under Armour Inc. Class Aa,b		3,438		278,994
VF Corp.		3,761		808,615
Wolverine World Wide Inc.		2,164		124,949
				7,242,308
THRIFTS & MORTGAGE FINANCE — 0.17%
Capitol Federal Financial Inc.		6,048		76,628
Hudson City Bancorp Inc.		20,536		184,413
MGIC Investment Corp.a		14,606		118,893
New York Community Bancorp Inc.		19,025		308,395
Ocwen Financial Corp.a		5,016		282,050
People’s United Financial Inc.		13,823		199,466
Radian Group Inc.		7,477		108,940
Washington Federal Inc.		4,604		104,879
				1,383,664
TOBACCO — 1.37%
Altria Group Inc.		86,238		3,210,641
Lorillard Inc.		16,094		820,955
Philip Morris International Inc.		69,643		6,206,584
Reynolds American Inc.		13,628		700,070
Universal Corp.		1,003		53,189
				10,991,439
TRADING COMPANIES & DISTRIBUTORS — 0.31%
Air Lease Corp.		3,227		94,874
Applied Industrial Technologies Inc.		1,855		87,760
Beacon Roofing Supply Inc.a,b		2,095		72,717
Fastenal Co.		11,663		580,817
GATX Corp.		1,996		102,894

28 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® DOW JONES U.S. ETF

October 31, 2013

Security	Shares		Value
MRC Global Inc.a		4,396	$	122,868
MSC Industrial Direct Co. Inc. Class A		2,018		154,115
United Rentals Inc.a,b		4,031		260,362
W.W. Grainger Inc.		2,645		711,426
Watsco Inc.		1,158		110,346
WESCO International Inc.a		1,887		161,263
				2,459,442
WATER UTILITIES — 0.06%
American Water Works Co. Inc.		7,634		327,270
Aqua America Inc.		7,579		190,839
				518,109
WIRELESS TELECOMMUNICATION SERVICES — 0.26%
Crown Castle International Corp.a		12,658		962,261
NII Holdings Inc.a,b		7,335		25,232
SBA Communications Corp. Class Aa		5,469		478,374
Sprint Corp.a		37,034		249,239
T-Mobile US Inc.		7,684		213,077
Telephone & Data Systems Inc.		4,358		135,883
				2,064,066
TOTAL COMMON STOCKS
(Cost: $595,854,642)				798,849,574
SHORT-TERM INVESTMENTS — 2.09%
MONEY MARKET FUNDS — 2.09%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		15,256,987		15,256,987
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		886,690		886,690
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		566,320		566,320
				16,709,997
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,709,997)				16,709,997

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.94%
(Cost: $612,564,639)	$	815,559,571
Other Assets Less Liabilities — (1.94)%		(15,544,870	)
NET ASSETS — 100.00%	$	800,014,701

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited)

iSHARES^® U.S. ENERGY ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.84%
ELECTRIC UTILITIES — 0.41%
OGE Energy Corp.		174,342	$	6,433,220
				6,433,220
ENERGY EQUIPMENT & SERVICES — 21.68%
Atwood Oceanics Inc.a,b		50,479		2,681,949
Baker Hughes Inc.		389,410		22,620,827
Bristow Group Inc.		31,839		2,562,084
Cameron International Corp.a		216,321		11,867,370
CARBO Ceramics Inc.b		17,507		2,194,327
Core Laboratories NV		40,354		7,555,076
Diamond Offshore Drilling Inc.		61,054		3,781,074
Dresser-Rand Group Inc.a,b		67,001		4,071,651
Dril-Quip Inc.a		35,650		4,186,023
Ensco PLC Class A		205,305		11,835,833
Exterran Holdings Inc.a,b		51,638		1,474,265
FMC Technologies Inc.a		208,231		10,526,077
Halliburton Co.		743,217		39,412,798
Helix Energy Solutions Group Inc.a		86,741		2,052,292
Helmerich & Payne Inc.		93,596		7,258,370
McDermott International Inc.a,b		206,871		1,462,578
Nabors Industries Ltd.		228,059		3,986,471
National Oilwell Varco Inc.		375,765		30,504,603
Noble Corp.		222,698		8,395,715
Oceaneering International Inc.		95,097		8,166,930
Oil States International Inc.a		48,478		5,266,165
Patterson-UTI Energy Inc.		129,213		3,134,707
Rowan Companies PLC Class Aa		109,111		3,936,725
Schlumberger Ltd.		1,163,002		108,996,548
SEACOR Holdings Inc.		16,538		1,617,416
Superior Energy Services Inc.a,b		140,101		3,758,910
Tidewater Inc.		43,594		2,625,231
Transocean Ltd.		297,776		14,016,316
Unit Corp.a,b		38,544		1,981,547
Weatherford International Ltd.a		674,774		11,093,285
				343,023,163
MACHINERY — 0.18%
Chart Industries Inc.a,b		26,630		2,861,926
				2,861,926
OIL, GAS & CONSUMABLE FUELS — 77.38%
Anadarko Petroleum Corp.		441,851		42,103,982
Apache Corp.		354,937		31,518,406
Berry Petroleum Co. Class A		43,207		2,063,134
Cabot Oil & Gas Corp.		369,789		13,060,947

Security	Shares		Value
Cheniere Energy Inc.a		195,139	$	7,766,532
Chesapeake Energy Corp.		445,305		12,450,728
Chevron Corp.		1,698,137		203,708,514
Cimarex Energy Co.		76,033		8,010,077
Cobalt International Energy Inc.a		260,245		6,040,286
Concho Resources Inc.a,b		92,055		10,182,204
ConocoPhillips		1,074,955		78,794,201
Continental Resources Inc.a		37,517		4,273,186
Denbury Resources Inc.a,b		327,769		6,224,333
Devon Energy Corp.		335,439		21,206,454
Energen Corp.		63,562		4,978,176
Energy XXI (Bermuda) Ltd.b		66,856		1,942,835
EOG Resources Inc.		239,442		42,716,453
EQT Corp.		132,363		11,331,596
EXCO Resources Inc.		118,968		643,617
Exxon Mobil Corp.		3,868,777		346,719,795
Gulfport Energy Corp.a,b		68,123		3,998,139
Hess Corp.		253,538		20,587,286
HollyFrontier Corp.		175,663		8,091,038
Kinder Morgan Inc.		591,793		20,896,211
Kodiak Oil & Gas Corp.a,b		233,864		3,033,216
Marathon Oil Corp.		623,762		21,993,848
Marathon Petroleum Corp.		275,176		19,719,112
Murphy Oil Corp.		154,422		9,314,735
Newfield Exploration Co.a		119,059		3,625,347
Noble Energy Inc.		315,668		23,653,003
Oasis Petroleum Inc.a,b		78,007		4,153,873
Occidental Petroleum Corp.		708,219		68,045,681
Phillips 66		537,061		34,602,840
Pioneer Natural Resources Co.		121,778		24,937,699
QEP Resources Inc.		157,746		5,215,083
Range Resources Corp.		143,619		10,873,394
Rosetta Resources Inc.a,b		53,758		3,222,254
SandRidge Energy Inc.a,b		315,949		2,003,117
SemGroup Corp. Class A		37,448		2,261,485
SM Energy Co.		58,810		5,211,154
Southwestern Energy Co.a		308,962		11,499,566
Tesoro Corp.		118,730		5,804,710
Ultra Petroleum Corp.a,b		134,151		2,463,012
Valero Energy Corp.		476,515		19,618,123
Western Refining Inc.b		47,504		1,532,954
Whiting Petroleum Corp.a		104,939		7,019,370
Williams Companies Inc. (The)		600,490		21,443,498
WPX Energy Inc.a,b		176,064		3,898,057
				1,224,453,261

30 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. ENERGY ETF

October 31, 2013

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.19%
First Solar Inc.a,b		60,728	$	3,052,796
				3,052,796
TOTAL COMMON STOCKS
(Cost: $1,472,622,007)				1,579,824,366
SHORT-TERM INVESTMENTS — 2.46%
MONEY MARKET FUNDS — 2.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		34,862,307		34,862,307
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		2,026,092		2,026,092
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		2,055,248		2,055,248
				38,943,647
TOTAL SHORT-TERM INVESTMENTS
(Cost: $38,943,647)				38,943,647
TOTAL INVESTMENTS IN SECURITIES — 102.30%
(Cost: $1,511,565,654)				1,618,768,013
Other Assets, Less Liabilities — (2.30)%				(36,392,302	)
NET ASSETS — 100.00%			$	1,582,375,711

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited)

iSHARES^® U.S. HEALTHCARE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.83%
BIOTECHNOLOGY — 20.39%
Acorda Therapeutics Inc.a,b		33,863	$	1,036,546
Aegerion Pharmaceuticals Inc.a,b		20,294		1,680,749
Alexion Pharmaceuticals Inc.a		162,772		20,012,817
Alkermes PLCa		112,940		3,974,359
Alnylam Pharmaceuticals Inc.a,b		44,020		2,535,992
Amgen Inc.		627,065		72,739,540
Arena Pharmaceuticals Inc.a,b		181,614		797,285
ARIAD Pharmaceuticals Inc.a,b		154,194		339,227
Biogen Idec Inc.a		197,829		48,307,864
BioMarin Pharmaceutical Inc.a,b		116,618		7,325,943
Celgene Corp.a		342,327		50,832,136
Cepheid Inc.a,b		56,016		2,280,972
Cubist Pharmaceuticals Inc.a		55,005		3,410,310
Gilead Sciences Inc.a		1,274,025		90,443,035
Incyte Corp.a,b		114,661		4,471,779
Isis Pharmaceuticals Inc.a,b		95,974		3,193,055
Medivation Inc.a,b		62,602		3,747,356
Myriad Genetics Inc.a,b		66,877		1,630,461
PDL BioPharma Inc.b		116,312		940,964
Pharmacyclics Inc.a,b		55,406		6,573,368
Regeneron Pharmaceuticals Inc.a		64,933		18,674,731
Seattle Genetics Inc.a		92,288		3,565,085
Theravance Inc.a,b		64,492		2,362,987
United Therapeutics Corp.a,b		38,228		3,383,943
Vertex Pharmaceuticals Inc.a		193,780		13,824,265
				368,084,769
COMMERCIAL SERVICES & SUPPLIES — 0.09%
Healthcare Services Group Inc.		58,073		1,590,619
				1,590,619
HEALTH CARE EQUIPMENT & SUPPLIES — 17.44%
Abbott Laboratories		1,293,582		47,280,422
Alere Inc.a		63,799		2,151,940
Align Technology Inc.a,b		58,476		3,336,641
Baxter International Inc.		451,791		29,759,473
Becton, Dickinson and Co.		161,653		16,994,580
Boston Scientific Corp.a		1,117,742		13,066,404
C.R. Bard Inc.		65,883		8,974,582
CareFusion Corp.a		178,434		6,917,886
Cooper Companies Inc. (The)		40,742		5,264,274
Covidien PLC		382,879		24,546,373
DENTSPLY International Inc.		118,431		5,578,100
Edwards Lifesciences Corp.a		93,452		6,092,136

Security	Shares		Value
Haemonetics Corp.a,b		42,640	$	1,729,478
Hill-Rom Holdings Inc.		48,760		2,013,300
Hologic Inc.a,b		225,097		5,039,922
IDEXX Laboratories Inc.a,b		43,733		4,717,041
Intuitive Surgical Inc.a		33,051		12,278,447
Masimo Corp.		42,766		1,095,665
Medtronic Inc.		830,248		47,656,235
ResMed Inc.b		118,239		6,117,686
Sirona Dental Systems Inc.a		47,299		3,417,353
St. Jude Medical Inc.		239,044		13,718,735
Steris Corp.		49,201		2,223,393
Stryker Corp.		245,496		18,132,335
Teleflex Inc.		34,269		3,158,916
Thoratec Corp.a		47,892		2,068,456
Varian Medical Systems Inc.a		89,606		6,503,604
West Pharmaceutical Services Inc.		58,084		2,808,361
Zimmer Holdings Inc.		141,125		12,344,204
				314,985,942
HEALTH CARE PROVIDERS & SERVICES — 14.19%
Aetna Inc.		309,718		19,419,319
Brookdale Senior Living Inc.a		83,642		2,265,025
Centene Corp.a,b		45,470		2,553,595
Cigna Corp.		235,421		18,122,709
Community Health Systems Inc.		78,905		3,442,625
DaVita HealthCare Partners Inc.a		146,876		8,255,900
Express Scripts Holding Co.a		677,702		42,369,929
HCA Holdings Inc.		223,336		10,528,059
Health Management Associates Inc. Class Aa		216,958		2,781,402
Health Net Inc.a		66,207		2,012,693
HealthSouth Corp.b		72,757		2,554,498
Henry Schein Inc.a		71,991		8,093,948
Humana Inc.		130,230		12,000,694
Laboratory Corp. of America Holdingsa		74,995		7,566,995
LifePoint Hospitals Inc.a		39,498		2,039,677
Magellan Health Services Inc.a		22,313		1,309,773
MEDNAX Inc.a,b		42,139		4,593,994
Owens & Minor Inc.b		52,829		1,976,861
Patterson Companies Inc.		69,228		2,942,882
Quest Diagnostics Inc.		126,423		7,574,002
Team Health Holdings Inc.a,b		57,970		2,518,217
Tenet Healthcare Corp.a		84,571		3,990,905
UnitedHealth Group Inc.		846,256		57,765,435
Universal Health Services Inc. Class B		74,376		5,991,731

32 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. HEALTHCARE ETF

October 31, 2013

Security	Shares		Value
WellCare Health Plans Inc.a		36,248	$	2,417,017
WellPoint Inc.		248,839		21,101,547
				256,189,432
HEALTH CARE TECHNOLOGY — 0.08%
HMS Holdings Corp.a,b		73,133		1,545,300
				1,545,300
LIFE SCIENCES TOOLS & SERVICES — 3.87%
Bio-Rad Laboratories Inc. Class Aa		16,634		2,054,632
Charles River Laboratories International Inc.a		40,841		2,009,786
Covance Inc.a,b		46,529		4,153,178
Illumina Inc.a,b		104,143		9,738,412
Life Technologies Corp.a		143,716		10,823,252
PAREXEL International Corp.a,b		46,793		2,138,908
TECHNE Corp.		27,602		2,412,139
Thermo Fisher Scientific Inc.		300,076		29,341,431
Waters Corp.a		70,933		7,158,558
				69,830,296
PHARMACEUTICALS — 43.77%
AbbVie Inc.		1,319,640		63,936,558
Actavis PLCa		144,386		22,319,188
Allergan Inc.		247,055		22,385,654
Bristol-Myers Squibb Co.		1,370,325		71,969,469
Eli Lilly and Co.		825,230		41,112,959
Endo Health Solutions Inc.a,b		95,059		4,156,930
Forest Laboratories Inc.a		196,621		9,247,086
Hospira Inc.a		137,877		5,586,776
Impax Laboratories Inc.a		53,229		1,078,420
Jazz Pharmaceuticals PLCa		44,405		4,029,310
Johnson & Johnson		2,345,640		217,229,720
Mallinckrodt PLCa		48,022		2,017,404
Merck & Co. Inc.		2,435,787		109,829,636
Mylan Inc.a		317,802		12,035,162
Nektar Therapeuticsa,b		96,663		919,265
Perrigo Co.		78,333		10,801,337
Pfizer Inc.		5,510,443		169,060,391
Questcor Pharmaceuticals Inc.		45,941		2,819,399
Salix Pharmaceuticals Ltd.a		51,332		3,683,071
ViroPharma Inc.a,b		54,537		2,117,126
VIVUS Inc.a,b		83,514		784,196
Zoetis Inc.		416,177		13,176,164
				790,295,221
TOTAL COMMON STOCKS
(Cost: $1,629,627,036)				1,802,521,579

Security	Shares		Value
SHORT-TERM INVESTMENTS — 3.65%
MONEY MARKET FUNDS — 3.65%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		59,926,730	$	59,926,730
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		3,482,760		3,482,760
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		2,391,795		2,391,795
				65,801,285
TOTAL SHORT-TERM INVESTMENTS
(Cost: $65,801,285)				65,801,285
TOTAL INVESTMENTS IN SECURITIES — 103.48%
(Cost: $1,695,428,321)				1,868,322,864
Other Assets, Less Liabilities — (3.48)%				(62,744,866	)
NET ASSETS — 100.00%			$	1,805,577,998

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited)

iSHARES^® U.S. TECHNOLOGY ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.96%
COMMERCIAL SERVICES & SUPPLIES — 0.16%
Pitney Bowes Inc.		209,684	$	4,474,657
				4,474,657
COMMUNICATIONS EQUIPMENT — 11.18%
ADTRAN Inc.		60,198		1,413,449
ARRIS Group Inc.a		118,560		2,117,481
Aruba Networks Inc.a,b		118,076		2,215,106
Brocade Communications Systems Inc.a		464,816		3,727,824
Ciena Corp.a,b		107,627		2,504,480
Cisco Systems Inc.		5,569,175		125,306,437
F5 Networks Inc.a		81,351		6,630,920
Finisar Corp.a,b		96,972		2,231,326
Harris Corp.		111,101		6,883,818
InterDigital Inc.		42,601		1,650,789
JDS Uniphase Corp.a		246,808		3,230,717
Juniper Networks Inc.a		526,523		9,814,389
Motorola Solutions Inc.		245,788		15,366,666
Palo Alto Networks Inc.a		46,577		1,963,686
Plantronics Inc.		45,366		1,948,016
Polycom Inc.a		175,374		1,823,890
QUALCOMM Inc.		1,781,859		123,785,745
Riverbed Technology Inc.a,b		171,524		2,541,986
ViaSat Inc.a,b		43,569		2,880,782
				318,037,507
COMPUTERS & PERIPHERALS — 23.71%
3D Systems Corp.a,b		98,175		6,110,412
Apple Inc.		943,678		492,930,203
Diebold Inc.		66,016		1,977,839
Electronics For Imaging Inc.a		47,983		1,646,297
EMC Corp.		2,161,455		52,026,222
Hewlett-Packard Co.		1,996,279		48,649,319
Lexmark International Inc. Class A		64,741		2,301,543
NCR Corp.a		172,454		6,303,194
NetApp Inc.		353,296		13,711,418
SanDisk Corp.		249,713		17,355,053
Seagate Technology PLC		336,696		16,390,361
Western Digital Corp.		219,112		15,256,769
				674,658,630
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.11%
Corning Inc.		1,517,000		25,925,530
Ingram Micro Inc. Class Aa		158,713		3,677,380

Security	Shares		Value
Tech Data Corp.a		39,031	$	2,031,954
				31,634,864
HEALTH CARE TECHNOLOGY — 0.96%
Allscripts Healthcare Solutions Inc.a,b		165,437		2,287,994
athenahealth Inc.a,b		38,278		5,110,496
Cerner Corp.a		306,518		17,174,203
Medidata Solutions Inc.a,b		26,064		2,875,120
				27,447,813
HOUSEHOLD DURABLES — 0.21%
Garmin Ltd.		127,840		5,976,520
				5,976,520
INTERNET SOFTWARE & SERVICES — 16.20%
Akamai Technologies Inc.a		185,075		8,280,255
AOL Inc.		80,038		2,900,577
Equinix Inc.a,b		51,274		8,279,726
Facebook Inc. Class Aa		1,694,858		85,183,563
Google Inc. Class Aa		290,574		299,459,753
IAC/InterActiveCorp		79,322		4,235,002
j2 Global Inc.		45,402		2,496,202
Pandora Media Inc.a		163,901		4,118,832
Rackspace Hosting Inc.a,b		118,356		6,063,378
VeriSign Inc.a,b		140,215		7,610,870
Yahoo! Inc.a		985,667		32,458,014
				461,086,172
IT SERVICES — 9.18%
Amdocs Ltd.		168,067		6,462,176
CACI International Inc. Class Aa,b		24,061		1,731,911
Cognizant Technology Solutions Corp. Class Aa		313,041		27,212,654
Computer Sciences Corp.		153,429		7,557,913
DST Systems Inc.		31,416		2,663,134
Gartner Inc.a		96,783		5,705,358
International Business Machines Corp.		1,069,574		191,678,357
Leidos Holdings Inc.		75,671		3,563,347
Science Applications International Corp.		43,478		1,532,599
Teradata Corp.a		169,439		7,467,177
Vantiv Inc. Class Aa		112,981		3,106,977
VeriFone Systems Inc.a		113,991		2,583,036
				261,264,639
OFFICE ELECTRONICS — 0.42%
Xerox Corp.		1,203,545		11,963,237
				11,963,237

34 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. TECHNOLOGY ETF

October 31, 2013

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 14.04%
Advanced Micro Devices Inc.a,b		632,867	$	2,113,776
Altera Corp.		331,882		11,151,235
Analog Devices Inc.		322,743		15,911,230
Applied Materials Inc.		1,249,462		22,302,897
Atmel Corp.a		444,306		3,234,548
Avago Technologies Ltd.		256,503		11,652,931
Broadcom Corp. Class A		571,387		15,267,461
Cavium Inc.a,b		53,340		2,150,135
Cirrus Logic Inc.a,b		65,620		1,471,857
Cree Inc.a,b		124,768		7,579,656
Cypress Semiconductor Corp.		141,992		1,317,686
Fairchild Semiconductor International Inc.a,b		131,958		1,671,908
Hittite Microwave Corp.a,b		32,638		2,085,242
Integrated Device Technology Inc.a,b		141,016		1,500,410
Intel Corp.		5,174,924		126,423,393
International Rectifier Corp.a		73,204		1,906,232
KLA-Tencor Corp.		172,173		11,294,549
Lam Research Corp.a		169,486		9,191,226
Linear Technology Corp.		242,251		9,966,206
LSI Corp.a		568,396		4,819,998
Marvell Technology Group Ltd.		424,349		5,092,188
Maxim Integrated Products Inc.		302,379		8,980,656
Microchip Technology Inc.		204,966		8,805,339
Micron Technology Inc.a		1,078,743		19,072,176
Microsemi Corp.a		97,289		2,444,872
NVIDIA Corp.		601,075		9,124,318
ON Semiconductor Corp.a		468,381		3,306,770
PMC-Sierra Inc.a		212,164		1,245,403
RF Micro Devices Inc.a,b		290,871		1,527,073
Semtech Corp.a,b		70,381		2,189,553
Silicon Laboratories Inc.a,b		40,643		1,634,661
Skyworks Solutions Inc.a		195,056		5,028,544
SunEdison Inc.a,b		249,609		2,321,364
Synaptics Inc.a		34,589		1,608,388
Teradyne Inc.a,b		198,934		3,479,356
Texas Instruments Inc.		1,143,833		48,132,493
Xilinx Inc.		276,638		12,564,898
				399,570,628
SOFTWARE — 22.79%
ACI Worldwide Inc.a,b		40,886		2,253,636
Adobe Systems Inc.a		485,207		26,298,219

Security	Shares		Value
ANSYS Inc.a		96,028	$	8,397,649
Aspen Technology Inc.a,b		97,375		3,722,646
Autodesk Inc.a		231,663		9,245,670
CA Inc.		340,784		10,823,300
Cadence Design Systems Inc.a,b		295,017		3,826,371
Citrix Systems Inc.a		194,651		11,052,284
CommVault Systems Inc.a,b		45,645		3,563,962
Compuware Corp.		221,965		2,370,586
Concur Technologies Inc.a,b		48,901		5,115,045
Fair Isaac Corp.		36,412		2,085,679
Fortinet Inc.a		142,388		2,863,423
Guidewire Software Inc.a,b		59,651		3,025,499
Informatica Corp.a		112,464		4,341,110
Intuit Inc.		308,439		22,025,629
Mentor Graphics Corp.		99,572		2,198,550
MICROS Systems Inc.a,b		79,597		4,318,137
Microsoft Corp.		7,873,765		278,337,593
NetSuite Inc.a,b		31,389		3,166,522
Nuance Communications Inc.a		274,014		4,263,658
Oracle Corp.		3,703,801		124,077,334
Progress Software Corp.a,b		55,956		1,452,618
PTC Inc.a		124,234		3,443,766
QLIK Technologies Inc.a		91,308		2,313,745
Red Hat Inc.a		196,653		8,509,175
Rovi Corp.a		105,083		1,761,191
Salesforce.com Inc.a		569,568		30,392,148
ServiceNow Inc.a,b		103,747		5,665,624
SolarWinds Inc.a		68,486		2,478,508
Solera Holdings Inc.		71,488		4,019,055
Splunk Inc.a,b		83,047		5,207,877
SS&C Technologies Holdings Inc.a,b		64,386		2,530,370
Symantec Corp.		725,720		16,502,873
Synopsys Inc.a		160,416		5,847,163
TIBCO Software Inc.a		158,715		3,898,040
Tyler Technologies Inc.a,b		29,114		2,815,615
Ultimate Software Group Inc. (The)a,b		29,658		4,581,568
VMware Inc. Class Aa,b		89,242		7,253,590
Workday Inc. Class Aa		32,365		2,423,168
				648,468,596
TOTAL COMMON STOCKS
(Cost: $2,622,681,736)				2,844,583,263

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. TECHNOLOGY ETF

October 31, 2013

Security	Shares		Value
SHORT-TERM INVESTMENTS — 3.58%
MONEY MARKET FUNDS — 3.58%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		94,919,151	$	94,919,151
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		5,516,413		5,516,413
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		1,543,173		1,543,173
				101,978,737
TOTAL SHORT-TERM INVESTMENTS
(Cost: $101,978,737)				101,978,737
TOTAL INVESTMENTS IN SECURITIES — 103.54%
(Cost: $2,724,660,473)				2,946,562,000
Other Assets, Less Liabilities — (3.54)%				(100,811,228	)
NET ASSETS — 100.00%			$	2,845,750,772

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

36 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. TELECOMMUNICATIONS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.96%
COMMUNICATIONS EQUIPMENT — 1.95%
Ruckus Wireless Inc.a,b		621,130	$	9,006,385
				9,006,385
DIVERSIFIED TELECOMMUNICATION SERVICES — 60.90%
8x8 Inc.a,b		940,157		10,774,199
AT&T Inc.		1,674,502		60,616,972
Atlantic Tele-Network Inc.		168,450		9,335,499
CenturyLink Inc.		963,556		32,626,006
Cincinnati Bell Inc.a		2,955,273		8,452,081
Consolidated Communications Holdings Inc.b		527,766		9,832,281
Frontier Communications Corp.b		4,192,308		18,488,078
General Communication Inc. Class Aa		708,873		6,741,382
Level 3 Communications Inc.a,b		689,019		21,049,530
tw telecom inc.a		612,798		19,315,393
Verizon Communications Inc.		1,086,950		54,901,845
Vonage Holdings Corp.a		2,713,978		10,123,138
Windstream Holdings Inc.b		2,280,593		19,499,070
				281,755,474
WIRELESS TELECOMMUNICATION SERVICES — 37.11%
Crown Castle International Corp.a		446,185		33,918,984
Leap Wireless International Inc.a,b		650,362		10,470,828
NII Holdings Inc.a,b		1,597,822		5,496,508
NTELOS Holdings Corp.		393,465		7,491,574
SBA Communications Corp. Class Aa		317,177		27,743,472
Shenandoah Telecommunications Co.		418,716		11,610,995
Sprint Corp.a,b		3,118,124		20,984,974
T-Mobile US Inc.a		733,382		20,336,683
Telephone & Data Systems Inc.		536,315		16,722,302
United States Cellular Corp.		198,796		9,621,726
USA Mobility Inc.		490,536		7,318,797
				171,716,843
TOTAL COMMON STOCKS (Cost: $442,963,785)				462,478,702
SHORT-TERM INVESTMENTS — 14.29%
MONEY MARKET FUNDS — 14.29%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		62,232,008		62,232,008

Security	Shares		Value
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		3,616,736	$	3,616,736
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		253,630		253,630
				66,102,374
TOTAL SHORT-TERM INVESTMENTS
(Cost: $66,102,374)				66,102,374
TOTAL INVESTMENTS IN SECURITIES — 114.25%
(Cost: $509,066,159)				528,581,076
Other Assets, Less Liabilities —(14.25)%				(65,917,903	)
NET ASSETS — 100.00%			$	462,663,173

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited)

iSHARES^® U.S. UTILITIES ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.77%
ELECTRIC UTILITIES — 49.90%
ALLETE Inc.		39,286	$	1,985,122
American Electric Power Co. Inc.		524,693		24,576,620
Cleco Corp.		65,212		3,021,924
Duke Energy Corp.		760,922		54,580,935
Edison International		351,202		17,219,434
El Paso Electric Co.		43,351		1,524,655
Entergy Corp.		192,144		12,435,560
Exelon Corp.		923,307		26,351,182
FirstEnergy Corp.		450,798		17,071,720
Great Plains Energy Inc.		165,836		3,887,196
Hawaiian Electric Industries Inc.		106,928		2,841,077
IDACORP Inc.		54,198		2,796,617
ITC Holdings Corp.		56,511		5,684,441
NextEra Energy Inc.		457,781		38,796,940
Northeast Utilities		339,280		14,551,719
NV Energy Inc.		253,937		6,028,464
Pepco Holdings Inc.		268,524		5,177,143
Pinnacle West Capital Corp.		118,574		6,643,701
PNM Resources Inc.		85,704		2,050,040
Portland General Electric Co.		83,503		2,396,536
PPL Corp.		680,950		20,857,498
Southern Co. (The)		941,979		38,536,361
UIL Holdings Corp.		60,212		2,319,366
UNS Energy Corp.		44,637		2,208,639
Westar Energy Inc.		136,929		4,328,326
Xcel Energy Inc.		536,329		15,478,455
				333,349,671
GAS UTILITIES — 7.84%
AGL Resources Inc.		127,845		6,118,662
Atmos Energy Corp.		97,744		4,327,127
National Fuel Gas Co.		90,123		6,448,301
New Jersey Resources Corp.		44,548		2,050,544
Northwest Natural Gas Co.		29,023		1,260,469
ONEOK Inc.		222,267		12,558,085
Piedmont Natural Gas Co.		81,935		2,797,261
Questar Corp.		188,735		4,465,470
South Jersey Industries Inc.		34,594		2,060,073
Southwest Gas Corp.		50,012		2,713,651
UGI Corp.		122,959		5,086,814
WGL Holdings Inc.		55,842		2,513,448
				52,399,905

Security	Shares		Value
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 4.38%
AES Corp. (The)		663,452	$	9,348,039
Calpine Corp.a,b		392,584		7,918,419
Dynegy Inc.a,b		105,760		2,054,917
NRG Energy Inc.		348,067		9,930,351
				29,251,726
MULTI-UTILITIES — 31.86%
Alliant Energy Corp.		119,579		6,244,415
Ameren Corp.		261,549		9,462,843
Avista Corp.		64,588		1,794,901
Black Hills Corp.		47,884		2,428,677
CenterPoint Energy Inc.		462,017		11,365,618
CMS Energy Corp.		286,568		7,869,157
Consolidated Edison Inc.		315,730		18,381,801
Dominion Resources Inc.		624,102		39,786,503
DTE Energy Co.		188,594		13,039,389
Integrys Energy Group Inc.		85,820		5,035,918
NiSource Inc.		336,966		10,621,168
NorthWestern Corp.		41,406		1,898,051
PG&E Corp.		479,980		20,087,163
Public Service Enterprise Group Inc.		545,284		18,267,014
SCANA Corp.		150,892		7,036,094
Sempra Energy		244,879		22,318,272
TECO Energy Inc.		220,225		3,781,263
Vectren Corp.		88,822		3,101,664
Wisconsin Energy Corp.		245,440		10,335,478
				212,855,389
OIL, GAS & CONSUMABLE FUELS — 3.84%
Spectra Energy Corp.		721,495		25,663,577
				25,663,577
WATER UTILITIES — 1.95%
American Water Works Co. Inc.		191,860		8,225,038
Aqua America Inc.		190,217		4,789,664
				13,014,702
TOTAL COMMON STOCKS
(Cost: $724,637,487)				666,534,970

38 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. UTILITIES ETF

October 31, 2013

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.38%
MONEY MARKET FUNDS — 1.38%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		7,766,529	$	7,766,529
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		451,367		451,367
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		997,862		997,862
				9,215,758
TOTAL SHORT-TERM INVESTMENTS
(Cost: $9,215,758)				9,215,758
TOTAL INVESTMENTS IN SECURITIES — 101.15%
(Cost: $733,853,245)				675,750,728
Other Assets, Less Liabilities — (1.15)%				(7,670,932	)
NET ASSETS — 100.00%			$	668,079,796

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited)

iSHARES^® TRANSPORTATION AVERAGE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.93%
AIR FREIGHT & LOGISTICS — 24.88%
C.H. Robinson Worldwide Inc.a		457,811	$	27,349,629
Expeditors International of Washington Inc.		617,880		27,983,786
FedEx Corp.		449,647		58,903,757
United Parcel Service Inc. Class B		494,134		48,543,724
				162,780,896
AIRLINES — 15.70%
Alaska Air Group Inc.		593,250		41,919,045
Delta Air Lines Inc.		698,265		18,420,231
JetBlue Airways Corp.a,b		986,520		6,994,427
Southwest Airlines Co.		957,289		16,484,516
United Continental Holdings Inc.b		556,617		18,897,147
				102,715,366
MARINE — 8.30%
Kirby Corp.a,b		351,713		31,123,084
Matson Inc.		854,945		23,160,460
				54,283,544
ROAD & RAIL — 46.72%
Con-way Inc.		641,373		26,424,568
CSX Corp.		747,540		19,480,892
J.B. Hunt Transport Services Inc.		387,285		29,057,994
Kansas City Southern Industries Inc.		477,498		58,025,557
Landstar System Inc.		472,212		26,108,601
Norfolk Southern Corp.		451,575		38,844,482
Ryder System Inc.		480,568		31,635,791
Union Pacific Corp.		502,958		76,147,841
				305,725,726
TRADING COMPANIES & DISTRIBUTORS — 4.33%
GATX Corp.		549,735		28,338,839
				28,338,839
TOTAL COMMON STOCKS
(Cost: $622,801,557)				653,844,371

Security	Shares		Value
SHORT-TERM INVESTMENTS — 2.62%
MONEY MARKET FUNDS — 2.62%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		15,760,464	$	15,760,464
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		915,951		915,951
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		432,801		432,801
				17,109,216
TOTAL SHORT-TERM INVESTMENTS
(Cost: $17,109,216)				17,109,216
TOTAL INVESTMENTS IN SECURITIES — 102.55%
(Cost: $639,910,773)				670,953,587
Other Assets, Less Liabilities — (2.55)%				(16,662,430	)
NET ASSETS — 100.00%			$	654,291,157

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Non-income earning security.

^c Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

40 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2013

	iShares Dow Jones U.S. ETF			iShares U.S. Energy ETF			iShares U.S. Healthcare ETF
ASSETS
Investments, at cost:
Unaffiliated	$	593,338,298		$	1,472,622,007		$	1,629,627,036
Affiliated (Note 2)		19,226,341			38,943,647			65,801,285
Total cost of investments	$	612,564,639		$	1,511,565,654		$	1,695,428,321
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	795,531,095		$	1,579,824,366		$	1,802,521,579
Affiliated (Note 2)		20,028,476			38,943,647			65,801,285
Total fair value of investments		815,559,571			1,618,768,013			1,868,322,864
Cash		8,187			—			—
Receivables:
Investment securities sold		—			271,255			—
Dividends and interest		722,682			1,215,224			1,361,778
Total Assets		816,290,440			1,620,254,492			1,869,684,642
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		16,143,677			36,888,399			63,409,490
Capital shares redeemed		—			391,668			19,784
Investment advisory fees (Note 2)		132,062			598,714			677,370
Total Liabilities		16,275,739			37,878,781			64,106,644
NET ASSETS	$	800,014,701		$	1,582,375,711		$	1,805,577,998
Net assets consist of:
Paid-in capital	$	670,354,779		$	1,522,990,247		$	1,594,030,407
Undistributed net investment income		1,133,397			559,935			1,039,195
Undistributed net realized gain (accumulated net realized loss)		(74,468,407	)		(48,376,830	)		37,613,853
Net unrealized appreciation		202,994,932			107,202,359			172,894,543
NET ASSETS	$	800,014,701		$	1,582,375,711		$	1,805,577,998
Shares outstandingb		9,000,000			32,250,000			16,300,000
Net asset value per share	$	88.89		$	49.07		$	110.77

^a  Securities on loan with values of $15,781,152, $36,073,305 and $61,990,737, respectively. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 41

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Technology ETF			iShares U.S. Telecommunications ETF			iShares U.S. Utilities ETF
ASSETS
Investments, at cost:
Unaffiliated	$	2,622,681,736		$	442,963,785		$	724,637,487
Affiliated (Note 2)		101,978,737			66,102,374			9,215,758
Total cost of investments	$	2,724,660,473		$	509,066,159		$	733,853,245
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	2,844,583,263		$	462,478,702		$	666,534,970
Affiliated (Note 2)		101,978,737			66,102,374			9,215,758
Total fair value of investments		2,946,562,000			528,581,076			675,750,728
Cash		195,086			—			—
Receivables:
Dividends and interest		430,572			1,561,598			982,618
Capital shares sold		14,516			2,392			—
Total Assets		2,947,202,174			530,145,066			676,733,346
LIABILITIES
Payables:
Investment securities purchased		—			1,461,927			–
Collateral for securities on loan (Note 5)		100,435,564			65,848,744			8,217,896
Capital shares redeemed		—			1,183			33,463
Investment advisory fees (Note 2)		1,015,838			170,039			402,191
Total Liabilities		101,451,402			67,481,893			8,653,550
NET ASSETS	$	2,845,750,772		$	462,663,173		$	668,079,796
Net assets consist of:
Paid-in capital	$	2,701,616,315		$	634,655,010		$	665,755,804
Undistributed net investment income		1,190,497			1,880,945			515,930
Undistributed net realized gain (accumulated net realized loss)		(78,957,567	)		(193,387,699	)		59,910,579
Net unrealized appreciation (depreciation)		221,901,527			19,514,917			(58,102,517	)
NET ASSETS	$	2,845,750,772		$	462,663,173		$	668,079,796
Shares outstandingb		34,600,000			15,800,000			6,850,000
Net asset value per share	$	82.25		$	29.28		$	97.53

^a  Securities on loan with values of $98,125,296, $63,261,217 and $8,024,543, respectively. See Note 5.

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

See notes to financial statements.

42 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares Transportation Average ETF
ASSETS
Investments, at cost:
Unaffiliated	$	622,801,557
Affiliated (Note 2)		17,109,216
Total cost of investments	$	639,910,773
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	653,844,371
Affiliated (Note 2)		17,109,216
Total fair value of investments		670,953,587
Receivables:
Dividends and interest		235,159
Capital shares sold		8,595
Total Assets		671,197,341
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		16,676,415
Capital shares redeemed		2,170
Investment advisory fees (Note 2)		227,599
Total Liabilities		16,906,184
NET ASSETS	$	654,291,157
Net assets consist of:
Paid-in capital	$	640,108,057
Distributions in excess of net investment income		(45,663	)
Accumulated net realized loss		(16,814,051	)
Net unrealized appreciation		31,042,814
NET ASSETS	$	654,291,157
Shares outstandingb		5,250,000
Net asset value per share	$	124.63

^a  Securities on loan with a value of $16,182,628. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 43

Statements of Operations (Unaudited)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Dow Jones U.S. ETF			iShares U.S. Energy ETF			iShares U.S. Healthcare ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	7,664,607		$	15,306,211		$	11,491,948
Dividends — affiliated (Note 2)		37,684			—			—
Interest — affiliated (Note 2)		15			19			27
Securities lending income — affiliated (Note 2)		42,121			68,507			183,209
Total investment income		7,744,427			15,374,737			11,675,184
EXPENSES
Investment advisory fees (Note 2)		752,931			3,139,505			3,101,798
Total expenses		752,931			3,139,505			3,101,798
Net investment income		6,991,496			12,235,232			8,573,386
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(2,430,967	)		(4,988,807	)		1,227,745
Investments — affiliated (Note 2)		(1,857	)		—			—
In-kind redemptions — unaffiliated		—			47,831,168			69,991,228
Net realized gain (loss)		(2,432,824	)		42,842,361			71,218,973
Net change in unrealized appreciation/depreciation		76,303,816			92,420,556			61,839,839
Net realized and unrealized gain		73,870,992			135,262,917			133,058,812
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	80,862,488		$	147,498,149		$	141,632,198

^a  Net of foreign withholding tax of $1,912, $3,776 and $  —, respectively.

See notes to financial statements.

44 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Technology ETF			iShares U.S. Telecommunications ETF			iShares U.S. Utilities ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	20,379,834		$	8,447,143		$	21,057,469
Interest — affiliated (Note 2)		47			40			13
Securities lending income — affiliated (Note 2)		158,451			329,007			7,768
Total investment income		20,538,332			8,776,190			21,065,250
EXPENSES
Investment advisory fees (Note 2)		5,242,462			1,079,047			2,384,624
Total expenses		5,242,462			1,079,047			2,384,624
Net investment income		15,295,870			7,697,143			18,680,626
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(43,769,990	)		(18,116,814	)		(6,545,688	)
In-kind redemptions — unaffiliated		61,722,658			30,715,132			111,923,823
Net realized gain		17,952,668			12,598,318			105,378,135
Net change in unrealized appreciation/depreciation		243,757,608			23,904,117			(191,870,893	)
Net realized and unrealized gain (loss)		261,710,276			36,502,435			(86,492,758	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	277,006,146		$	44,199,578		$	(67,812,132	)

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Transportation Average ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	4,422,189
Interest — affiliated (Note 2)		3
Securities lending income — affiliated (Note 2)		16,448
Total investment income		4,438,640
EXPENSES
Investment advisory fees (Note 2)		1,347,421
Total expenses		1,347,421
Net investment income		3,091,219
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(65,596	)
In-kind redemptions — unaffiliated		25,999,389
Net realized gain		25,933,793
Net change in unrealized appreciation/depreciation		40,143,510
Net realized and unrealized gain		66,077,303
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	69,168,522

See notes to financial statements.

46 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Dow Jones U.S. ETF						iShares U.S. Energy ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	6,991,496		$	12,944,455		$	12,235,232		$	16,541,231
Net realized gain (loss)		(2,432,824	)		13,214,056			42,842,361			65,081,561
Net change in unrealized appreciation/depreciation		76,303,816			73,043,069			92,420,556			39,203,453
Net increase in net assets resulting from operations		80,862,488			99,201,580			147,498,149			120,826,245
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(6,525,969	)		(12,899,499	)		(11,675,297	)		(16,760,485	)
Total distributions to shareholders		(6,525,969	)		(12,899,499	)		(11,675,297	)		(16,760,485	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		13,262,587			30,643,838			464,271,633			729,480,298
Cost of shares redeemed		—			(72,430,291	)		(233,505,710	)		(543,392,760	)
Net increase (decrease) in net assets from capital share transactions		13,262,587			(41,786,453	)		230,765,923			186,087,538
INCREASE IN NET ASSETS		87,599,106			44,515,628			366,588,775			290,153,298
NET ASSETS
Beginning of period		712,415,595			667,899,967			1,215,786,936			925,633,638
End of period	$	800,014,701		$	712,415,595		$	1,582,375,711		$	1,215,786,936
Undistributed net investment income included in net assets at end of period	$	1,133,397		$	667,870		$	559,935		$	—
SHARES ISSUED AND REDEEMED
Shares sold		150,000			400,000			9,950,000			17,850,000
Shares redeemed		—			(1,050,000	)		(4,900,000	)		(13,200,000	)
Net increase (decrease) in shares outstanding		150,000			(650,000	)		5,050,000			4,650,000

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Healthcare ETF						iShares U.S. Technology ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	8,573,386		$	11,402,565		$	15,295,870		$	17,851,355
Net realized gain		71,218,973			18,456,010			17,952,668			164,570,813
Net change in unrealized appreciation/depreciation		61,839,839			163,303,702			243,757,608			(211,538,663	)
Net increase (decrease) in net assets resulting from operations		141,632,198			193,162,277			277,006,146			(29,116,495	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(8,163,381	)		(11,300,087	)		(14,282,477	)		(17,674,251	)
Total distributions to shareholders		(8,163,381	)		(11,300,087	)		(14,282,477	)		(17,674,251	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		925,321,362			351,047,891			950,864,049			900,231,349
Cost of shares redeemed		(239,353,538	)		(163,835,101	)		(227,051,000	)		(687,178,273	)
Net increase in net assets from capital share transactions		685,967,824			187,212,790			723,813,049			213,053,076
INCREASE IN NET ASSETS		819,436,641			369,074,980			986,536,718			166,262,330
NET ASSETS
Beginning of period		986,141,357			617,066,377			1,859,214,054			1,692,951,724
End of period	$	1,805,577,998		$	986,141,357		$	2,845,750,772		$	1,859,214,054
Undistributed net investment income included in net assets at end of period	$	1,039,195		$	629,190		$	1,190,497		$	177,104
SHARES ISSUED AND REDEEMED
Shares sold		8,650,000			3,950,000			12,250,000			12,400,000
Shares redeemed		(2,250,000	)		(1,950,000	)		(2,900,000	)		(9,500,000	)
Net increase in shares outstanding		6,400,000			2,000,000			9,350,000			2,900,000

See notes to financial statements.

48 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Telecommunications ETF						iShares U.S. Utilities ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	7,697,143		$	13,694,145		$	18,680,626		$	26,660,684
Net realized gain		12,598,318			47,224,276			105,378,135			15,722,605
Net change in unrealized appreciation/depreciation		23,904,117			50,764,839			(191,870,893	)		140,605,700
Net increase (decrease) in net assets resulting from operations		44,199,578			111,683,260			(67,812,132	)		182,988,989
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(6,746,452	)		(13,965,338	)		(18,550,248	)		(26,841,208	)
Total distributions to shareholders		(6,746,452	)		(13,965,338	)		(18,550,248	)		(26,841,208	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		135,081,653			561,358,963			1,074,730,118			472,042,963
Cost of shares redeemed		(257,405,958	)		(581,574,925	)		(1,437,583,351	)		(163,474,314	)
Net increase (decrease) in net assets from capital share transactions		(122,324,305	)		(20,215,962	)		(362,853,233	)		308,568,649
INCREASE (DECREASE) IN NET ASSETS		(84,871,179	)		77,501,960			(449,215,613	)		464,716,430
NET ASSETS
Beginning of period		547,534,352			470,032,392			1,117,295,409			652,578,979
End of period	$	462,663,173		$	547,534,352		$	668,079,796		$	1,117,295,409
Undistributed net investment income included in net assets at end of period	$	1,880,945		$	930,254		$	515,930		$	385,552
SHARES ISSUED AND REDEEMED
Shares sold		4,950,000			23,200,000			11,100,000			5,300,000
Shares redeemed		(9,600,000	)		(24,200,000	)		(15,150,000	)		(1,850,000	)
Net increase (decrease) in shares outstanding		(4,650,000	)		(1,000,000	)		(4,050,000	)		3,450,000

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Transportation  Average ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	3,091,219		$	6,421,821
Net realized gain		25,933,793			81,551,436
Net change in unrealized appreciation/depreciation		40,143,510			30,268,046
Net increase in net assets resulting from operations		69,168,522			118,241,303
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,136,882	)		(6,585,577	)
Total distributions to shareholders		(3,136,882	)		(6,585,577	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		466,062,255			1,824,468,459
Cost of shares redeemed		(417,123,245	)		(1,909,438,253	)
Net increase (decrease) in net assets from capital share transactions		48,939,010			(84,969,794	)
INCREASE IN NET ASSETS		114,970,650			26,685,932
NET ASSETS
Beginning of period		539,320,507			512,634,575
End of period	$	654,291,157		$	539,320,507
Distributions in excess of net investment income included in net assets at end of period	$	(45,663	)	$	—
SHARES ISSUED AND REDEEMED
Shares sold		4,000,000			18,600,000
Shares redeemed		(3,650,000	)		(19,200,000	)
Net increase (decrease) in shares outstanding		350,000			(600,000	)

See notes to financial statements.

50 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Dow Jones U.S. ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	80.50		$	70.31		$	69.08		$	59.50		$	43.17		$	67.74
Income from investment operations:
Net investment incomea		0.79			1.47			1.20			1.05			0.94			1.14
Net realized and unrealized gain (loss)b		8.34			10.20			1.22			9.59			16.34			(24.58	)
Total from investment operations		9.13			11.67			2.42			10.64			17.28			(23.44	)
Less distributions from:
Net investment income		(0.74	)		(1.48	)		(1.19	)		(1.06	)		(0.95	)		(1.13	)
Total distributions		(0.74	)		(1.48	)		(1.19	)		(1.06	)		(0.95	)		(1.13	)
Net asset value, end of period	$	88.89		$	80.50		$	70.31		$	69.08		$	59.50		$	43.17
Total return		11.40	%c		16.85	%		3.71	%		18.16	%		40.33	%		(34.80	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	800,015		$	712,416		$	667,900		$	676,972		$	597,931		$	487,847
Ratio of expenses to average net assetsd		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assetsd		1.86	%		2.04	%		1.85	%		1.75	%		1.80	%		2.27	%
Portfolio turnover ratee		3	%		7	%		5	%		5	%		6	%		7	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 51

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Energy ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009a
Net asset value, beginning of period	$	44.70		$	41.05		$	45.98		$	34.64		$	27.29		$	47.57
Income from investment operations:
Net investment incomeb		0.41			0.69			0.57			0.50			0.47			0.46
Net realized and unrealized gain (loss)c		4.35			3.69			(4.92	)		11.35			7.36			(20.28	)
Total from investment operations		4.76			4.38			(4.35	)		11.85			7.83			(19.82	)
Less distributions from:
Net investment income		(0.39	)		(0.73	)		(0.58	)		(0.51	)		(0.48	)		(0.46	)
Total distributions		(0.39	)		(0.73	)		(0.58	)		(0.51	)		(0.48	)		(0.46	)
Net asset value, end of period	$	49.07		$	44.70		$	41.05		$	45.98		$	34.64		$	27.29
Total return		10.71	%d		10.81	%		(9.41	)%		34.71	%		28.89	%		(41.84	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,582,376		$	1,215,787		$	925,634		$	1,177,210		$	744,713		$	597,617
Ratio of expenses to average net assetse		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.47	%
Ratio of net investment income to average net assetse		1.76	%		1.65	%		1.41	%		1.36	%		1.48	%		1.28	%
Portfolio turnover ratef		3	%		9	%		8	%		6	%		8	%		25	%

^a  Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008.

^b Based on average shares outstanding throughout each period.

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

^d Not annualized.

^e  Annualized for periods of less than one year.

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

See notes to financial statements.

52 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Healthcare ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	99.61		$	78.11		$	73.64		$	64.22		$	49.35		$	63.53
Income from investment operations:
Net investment incomea		0.66			1.39			1.20			1.04			0.87			0.95
Net realized and unrealized gain (loss)b		11.14			21.48			4.49			9.44			14.92			(14.20	)
Total from investment operations		11.80			22.87			5.69			10.48			15.79			(13.25	)
Less distributions from:
Net investment income		(0.64	)		(1.37	)		(1.22	)		(1.06	)		(0.92	)		(0.93	)
Total distributions		(0.64	)		(1.37	)		(1.22	)		(1.06	)		(0.92	)		(0.93	)
Net asset value, end of period	$	110.77		$	99.61		$	78.11		$	73.64		$	64.22		$	49.35
Total return		11.89	%c		29.59	%		7.90	%		16.59	%		32.12	%		(21.00	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,805,578		$	986,141		$	617,066		$	644,322		$	722,485		$	658,785
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.25	%		1.63	%		1.67	%		1.63	%		1.46	%		1.68	%
Portfolio turnover ratee		3	%		6	%		7	%		8	%		4	%		7	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 53

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Technology ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	73.63		$	75.75		$	68.33		$	59.57		$	41.61		$	56.38
Income from investment operations:
Net investment incomea		0.51			0.78			0.40			0.26			0.23			0.23
Net realized and unrealized gain (loss)b		8.58			(2.14	)		7.44			8.78			17.98			(14.76	)
Total from investment operations		9.09			(1.36	)		7.84			9.04			18.21			(14.53	)
Less distributions from:
Net investment income		(0.47	)		(0.76	)		(0.42	)		(0.28	)		(0.25	)		(0.24	)
Total distributions		(0.47	)		(0.76	)		(0.42	)		(0.28	)		(0.25	)		(0.24	)
Net asset value, end of period	$	82.25		$	73.63		$	75.75		$	68.33		$	59.57		$	41.61
Total return		12.40	%c		(1.77	)%		11.58	%		15.24	%		43.88	%		(25.76	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,845,751		$	1,859,214		$	1,692,952		$	1,581,811		$	1,420,740		$	826,010
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income to average net assetsd		1.32	%		1.08	%		0.60	%		0.42	%		0.44	%		0.52	%
Portfolio turnover ratee		8	%		5	%		6	%		8	%		4	%		5	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

54 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Telecommunications ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	26.77		$	21.91		$	24.53		$	20.37		$	17.20		$	25.27
Income from investment operations:
Net investment incomea		0.44			0.63			0.63			0.58			0.73			0.74
Net realized and unrealized gain (loss)b		2.48			4.89			(2.66	)		4.30			3.17			(8.10	)
Total from investment operations		2.92			5.52			(2.03	)		4.88			3.90			(7.36	)
Less distributions from:
Net investment income		(0.41	)		(0.66	)		(0.59	)		(0.72	)		(0.73	)		(0.71	)
Total distributions		(0.41	)		(0.66	)		(0.59	)		(0.72	)		(0.73	)		(0.71	)
Net asset value, end of period	$	29.28		$	26.77		$	21.91		$	24.53		$	20.37		$	17.20
Total return		11.10	%c		25.59	%		(8.20	)%		24.48	%		23.04	%		(29.28	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	462,663		$	547,534		$	470,032		$	686,835		$	583,531		$	531,481
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		3.22	%		2.63	%		2.81	%		2.65	%		3.90	%		3.86	%
Portfolio turnover ratee		28	%		40	%		25	%		29	%		28	%		26	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 55

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Utilities ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	102.50		$	87.59		$	82.42		$	74.40		$	61.49		$	97.45
Income from investment operations:
Net investment incomea		1.71			3.10			2.93			2.89			2.72			2.70
Net realized and unrealized gain (loss)b		(5.09	)		14.84			5.19			8.08			12.98			(36.08	)
Total from investment operations		(3.38	)		17.94			8.12			10.97			15.70			(33.38	)
Less distributions from:
Net investment income		(1.59	)		(3.03	)		(2.95	)		(2.95	)		(2.79	)		(2.58	)
Total distributions		(1.59	)		(3.03	)		(2.95	)		(2.95	)		(2.79	)		(2.58	)
Net asset value, end of period	$	97.53		$	102.50		$	87.59		$	82.42		$	74.40		$	61.49
Total return		(3.24	)%c		21.00	%		10.07	%		15.18	%		25.85	%		(34.67	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	668,080		$	1,117,295		$	652,579		$	510,978		$	468,726		$	405,856
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		3.54	%		3.41	%		3.48	%		3.79	%		3.87	%		3.45	%
Portfolio turnover ratee		2	%		5	%		6	%		8	%		6	%		9	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

56 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Transportation Average ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	110.07		$	93.21		$	99.71		$	84.23		$	56.23		$	92.45
Income from investment operations:
Net investment incomea		0.60			1.09			1.23			0.99			0.93			0.95
Net realized and unrealized gain (loss)b		14.56			16.90			(6.45	)		15.55			28.02			(36.08	)
Total from investment operations		15.16			17.99			(5.22	)		16.54			28.95			(35.13	)
Less distributions from:
Net investment income		(0.60	)		(1.13	)		(1.26	)		(1.06	)		(0.95	)		(1.09	)
Return of capital		—			—			(0.02	)		—			—			—
Total distributions		(0.60	)		(1.13	)		(1.28	)		(1.06	)		(0.95	)		(1.09	)
Net asset value, end of period	$	124.63		$	110.07		$	93.21		$	99.71		$	84.23		$	56.23
Total return		13.82	%c		19.51	%		(5.13	)%		19.89	%		51.90	%		(38.06	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	654,291		$	539,321		$	512,635		$	618,186		$	547,498		$	261,450
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.47	%
Ratio of net investment income to average net assetsd		1.04	%		1.13	%		1.35	%		1.16	%		1.33	%		1.29	%
Portfolio turnover ratee		1	%		12	%		25	%		8	%		12	%		15	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 57

Notes to Financial Statements (Unaudited)

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

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

iShares ETF	Former Namea	Diversification Classification
Dow Jones U.S.	iShares Dow Jones U.S. Index Fund		Diversified
U.S. Energy	iShares Dow Jones U.S. Energy Sector Index Fund		Non-diversified
U.S. Healthcare	iShares Dow Jones U.S. Healthcare Sector Index Fund		Non-diversified
U.S. Technology	iShares Dow Jones U.S. Technology Sector Index Fund		Non-diversified
U.S. Telecommunications	iShares Dow Jones U.S. Telecommunications Sector Index Fund		Non-diversified
U.S. Utilities	iShares Dow Jones U.S. Utilities Sector Index Fund		Non-diversified
Transportation Average	iShares Dow Jones Transportation Average Index Fund		Non-diversified

^a  The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

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

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

58 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

SECURITY VALUATION

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

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

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

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

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for

NOTES TO FINANCIAL STATEMENTS 59

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

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

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

As of October 31, 2013, the value of each of the Funds’ investments was classified as Level 1. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

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

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to each of the iShares U.S. Energy, iShares U.S. Healthcare, iShares U.S. Technology, iShares U.S. Telecommunications, iShares U.S. Utilities and iShares Transportation Average ETFs, BFA is entitled to an annual

60 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.48	%	First $10 billion
	0.43		Over $10 billion, up to and including $20 billion
	0.38		Over $20 billion

For its investment advisory services to the iShares Dow Jones U.S. ETF, BFA is entitled to an annual investment advisory fee of 0.20% based on the average daily net assets of the Fund.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended October 31, 2013, each Fund retained 65% of securities lending income and paid a fee to BTC equal to 35% of such income in the amounts as follows:

iShares ETF	Securities Lending Agent Fees
Dow Jones U.S.	$	22,680
U.S. Energy		36,888
U.S. Healthcare		98,651
U.S. Technology		85,320
U.S. Telecommunications		177,158
U.S. Utilities		4,183
Transportation Average		8,857

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.

Cross trades for the six months ended October 31, 2013, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. 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.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the statements of operations.

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

NOTES TO FINANCIAL STATEMENTS 61

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the six months ended October 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
Dow Jones U.S.
BlackRock Inc.		5,306		187		(64	)		5,429	$	1,633,098	$	17,889	$	(1,554	)
PNC Financial Services Group Inc. (The)		22,309		882		(270	)		22,921		1,685,381		19,795		(303	)
										$	3,318,479	$	37,684	$	(1,857	)

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

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2013 were as follows:

iShares ETF	Purchases		Sales
Dow Jones U.S.	$	23,670,235	$	22,914,713
U.S. Energy		37,678,087		38,058,842
U.S. Healthcare		39,672,772		39,069,197
U.S. Technology		179,980,757		175,723,249
U.S. Telecommunications		132,480,298		134,912,025
U.S. Utilities		23,032,079		22,783,218
Transportation Average		3,384,513		3,625,082

In-kind transactions (see Note 4) for the six months ended October 31, 2013 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Dow Jones U.S.	$	13,193,944	$	—
U.S. Energy		463,152,118		232,877,990
U.S. Healthcare		923,331,844		238,819,955
U.S. Technology		948,835,947		226,461,358
U.S. Telecommunications		129,064,359		246,874,140
U.S. Utilities		1,071,772,609		1,434,680,843
Transportation Average		465,340,868		416,486,058

62 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

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

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities 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 Funds and any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates.

As of October 31, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of October 31, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, a Fund can resell or re-pledge the collateral and the borrower can resell or re-pledge the loaned securities.

NOTES TO FINANCIAL STATEMENTS 63

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

As of October 31, 2013, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:

iShares ETF	Market Value of Securities on Loan
Dow Jones U.S.	$	15,781,152
U.S. Energy		36,073,305
U.S. Healthcare		61,990,737
U.S. Technology		98,125,296
U.S. Telecommunications		63,261,217
U.S. Utilities		8,024,543
Transportation Average		16,182,628

The value of the related collateral disclosed in the Funds’ schedules of investments exceeded the market value of the securities on loan at period end.

6. INCOME TAX INFORMATION

For purposes of U.S. GAAP, 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 values per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

As of April 30, 2013, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
Dow Jones U.S.	$	7,901,046	$	—	$	—	$	—	$	12,857,723	$	29,445,888	$	2,653,096	$	52,857,753
U.S. Energy		3,740,853		—		712,195		—		17,026,947		47,146,200		10,785,190		79,411,385
U.S. Healthcare		2,832,855		519,297		3,188,912		2,321,632		1,325,798		8,036,854		2,243,166		20,468,514
U.S. Technology		23,856,923		3,556,590		5,706,797		4,320,339		10,350,313		19,733,772		6,381,458		73,906,192
U.S. Telecommunications		3,394,841		—		3,799,540		—		37,556,483		109,926,562		30,701,158		185,378,584
U.S. Utilities		6,239,813		—		4,406,966		—		345,393		18,294,046		5,497,127		34,783,345
Transportation Average		20,489,119		1,535,209		781,024		—		10,444,516		3,834,866		4,851,034		41,935,768

^a  Must be utilized prior to losses subject to expiration.

64 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

As of October 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Dow Jones U.S.	$	630,510,830	$	232,248,384	$	(47,199,643	)	$	185,048,741
U.S. Energy		1,521,376,566		150,604,637		(53,213,190	)		97,391,447
U.S. Healthcare		1,707,176,436		208,761,371		(47,614,943	)		161,146,428
U.S. Technology		2,744,164,235		303,698,887		(101,301,122	)		202,397,765
U.S. Telecommunications		527,931,901		48,993,943		(48,344,768	)		649,175
U.S. Utilities		743,885,845		6,278,483		(74,413,600	)		(68,135,117	)
Transportation Average		640,362,431		43,104,782		(12,513,626	)		30,591,156

Management has reviewed the tax positions as of October 31, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

7. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 65

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I.  iShares Dow Jones U.S. ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

The Board also noted that the investment advisory fee rate and overall expenses for the Fund compared favorably to the investment advisory fee rates and overall expenses of the funds in its respective Lipper Group.

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that

66 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

the Fund generally performed in line with its performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 67

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

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

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

68 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

II.  iShares U.S. Energy ETF, iShares U.S. Healthcare ETF, iShares U.S. Technology ETF, iShares U.S. Telecommunications ETF, iShares U.S. Utilities ETF and iShares Transportation Average ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 69

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and

70 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the nature of such costs may impact the existence of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 71

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

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

72 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

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

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Dow Jones U.S.	$	0.725808	$	—	$	0.009411	$	0.735219		99	%		—	%		1	%		100	%
U.S. Telecommunications		0.405501		—		0.005254		0.410755		99			—			1			100
U.S. Utilities		1.555202		—		0.037247		1.592449		98			—			2			100

SUPPLEMENTAL INFORMATION 73

Notes:

74 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices, LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

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

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

©2013 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.

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iS-SAR-41-1013

OCTOBER 31, 2013

2013 SEMI-ANNUAL REPORT (UNAUDITED)

iShares Trust

^Ø   iShares U.S. Basic Materials ETF  |  IYM  |  NYSE Arca

^Ø   iShares U.S. Consumer Goods ETF  |  IYK  |  NYSE Arca

^Ø   iShares U.S. Consumer Services ETF  |  IYC  |  NYSE Arca

^Ø   iShares U.S. Financials ETF  |  IYF  |  NYSE Arca

^Ø   iShares U.S. Industrials ETF  |  IYJ  |  NYSE Arca

^Ø   iShares U.S. Financial Services ETF  |  IYG  |  NYSE Arca

^Ø   iShares U.S. Real Estate ETF  |  IYR  |  NYSE Arca

^Ø   iShares MSCI KLD 400 Social ETF  |  DSI  |  NYSE Arca

^Ø   iShares MSCI USA ESG Select ETF  |  KLD  |  NYSE Arca

^Ø   iShares Cohen & Steers REIT ETF  |  ICF  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	15
Shareholder Expenses	15
Schedules of Investments
iShares U.S. Basic Materials ETF	16
iShares U.S. Consumer Goods ETF	18
iShares U.S. Consumer Services ETF	21
iShares U.S. Financials ETF	25
iShares U.S. Industrials ETF	29
iShares U.S. Financial Services ETF	33
iShares U.S. Real Estate ETF	35
iShares MSCI KLD 400 Social ETF	37
iShares MSCI USA ESG Select ETF	44
iShares Cohen & Steers REIT ETF	47
Financial Statements	48
Financial Highlights	61
Notes to Financial Statements	71
Board Review and Approval of Investment Advisory Contract	81
Supplemental Information	91

Fund Performance Overview

iSHARES^® U.S. BASIC MATERIALS ETF

Performance as of October 31, 2013

The iShares U.S. Basic Materials ETF (the “Fund”), formerly the iShares Dow Jones U.S. Basic Materials Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the basic materials sector, as represented by the Dow Jones U.S. Basic Materials Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.55%, net of fees, while the total return for the Index was 11.81%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.56%		17.61%		18.04%		17.56%		17.61%		18.04%
5 Years		14.87%		14.89%		15.39%		99.99%		100.20%		104.53%
10 Years		8.66%		8.66%		9.20%		129.54%		129.45%		141.06%

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,115.50	$	2.40	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION As of 10/31/13

Sector Percentage of
Total  Investments*

Chemicals	74.26	%
Metals & Mining	18.95
Paper & Forest Products	3.96
Oil, Gas & Consumable Fuels	2.48
Machinery	0.35
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

E.I. du Pont de Nemours and Co.	9.26	%
Monsanto Co.	9.16
Dow Chemical Co. (The)	7.82
Freeport-McMoRan Copper & Gold Inc.	6.25
Praxair Inc.	6.02
LyondellBasell Industries NV Class A	5.47
Ecolab Inc.	4.71
PPG Industries Inc.	4.27
Air Products and Chemicals Inc.	3.74
International Paper Co.	3.26
TOTAL	59.96	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® U.S. CONSUMER GOODS ETF

Performance as of October 31, 2013

The iShares U.S. Consumer Goods ETF (the “Fund”), formerly the iShares Dow Jones U.S. Consumer Goods Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the consumer goods sector, as represented by the Dow Jones U.S. Consumer Goods Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 7.90%, net of fees, while the total return for the Index was 8.14%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		28.64%		28.57%		29.23%		28.64%		28.57%		29.23%
5 Years		16.57%		16.54%		17.12%		115.27%		115.00%		120.34%
10 Years		9.62%		9.62%		10.16%		150.61%		150.59%		163.19%

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,079.00	$	2.36	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Food, Beverage & Tobacco	48.00	%
Household & Personal Products	20.19
Consumer Durables & Apparel	14.86
Automobiles & Components	12.40
Capital Goods	1.49
Retailing	1.30
Other**	1.76
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Procter & Gamble Co. (The)	11.61	%
Coca-Cola Co. (The)	7.92
Philip Morris International Inc.	7.57
PepsiCo Inc.	6.81
Altria Group Inc.	3.92
Ford Motor Co.	3.54
Mondelez International Inc. Class A	3.15
Colgate-Palmolive Co.	3.00
Nike Inc. Class B	2.98
Kimberly-Clark Corp.	2.17
TOTAL	52.67	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

6 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. CONSUMER SERVICES ETF

Performance as of October 31, 2013

The iShares U.S. Consumer Services ETF (the “Fund”), formerly the iShares Dow Jones U.S. Consumer Services Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the consumer services sector, as represented by the Dow Jones U.S. Consumer Services Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 15.86%, net of fees, while the total return for the Index was 16.13%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		37.04%		37.07%		37.70%		37.04%		37.07%		37.70%
5 Years		22.63%		22.61%		23.18%		177.37%		177.09%		183.60%
10 Years		8.79%		8.79%		9.26%		132.24%		132.14%		142.37%

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.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,158.60	$	2.45	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Retailing	32.50	%
Media	26.95
Food & Staples Retailing	15.33
Consumer Services	15.24
Health Care Equipment & Services	3.13
Transportation	2.84
Software & Services	2.78
Commercial & Professional Services	1.09
Other**	0.14
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 10/31/13

Security Percentage of
Total  Investments*

Amazon.com Inc.	5.26	%
Wal-Mart Stores Inc.	4.87
Comcast Corp. Class A	4.86
Walt Disney Co. (The)	4.45
Home Depot Inc. (The)	4.35
McDonald’s Corp.	3.77
CVS Caremark Corp.	2.98
Twenty-First Century Fox Inc. Class A	2.64
Time Warner Inc.	2.47
eBay Inc.	2.40
TOTAL	38.05	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® U.S. FINANCIALS ETF

Performance as of October 31, 2013

The iShares U.S. Financials ETF (the “Fund”), formerly the iShares Dow Jones U.S. Financial Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the financials sector, as represented by the Dow Jones U.S. Financials Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 9.88%, net of fees, while the total return for the Index was 10.12%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		30.41%		30.54%		31.00%		30.41%		30.54%		31.00%
5 Years		8.96%		9.00%		9.35%		53.56%		53.83%		56.37%
10 Years		0.89%		0.89%		1.31%		9.30%		9.31%		13.89%

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,098.80	$	2.38	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Diversified Financials	40.25	%
Insurance	18.43
Real Estate	18.25
Banks	17.38
Software & Services	5.56
Commercial & Professional Services	0.13
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Berkshire Hathaway Inc. Class B	6.21	%
Wells Fargo & Co.	6.19
J.P. Morgan Chase & Co.	5.82
Bank of America Corp.	4.50
Citigroup Inc.	4.45
Visa Inc. Class A	3.05
American International Group Inc.	2.29
American Express Co.	2.28
MasterCard Inc. Class A	2.23
U.S. Bancorp	2.06
TOTAL	39.08	%

8 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. INDUSTRIALS ETF

Performance as of October 31, 2013

The iShares U.S. Industrials ETF (the “Fund”), formerly the iShares Dow Jones U.S. Industrial Sector Index Fund, seeks to track the investment results of an index composed of U.S. equities in the industrials sector, as represented by the Dow Jones U.S. Industrials Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 17.05%, net of fees, while the total return for the Index was 17.33%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		35.99%		35.96%		36.61%		35.99%		35.96%		36.61%
5 Years		17.62%		17.57%		18.13%		125.07%		124.67%		130.03%
10 Years		9.27%		9.26%		9.79%		142.65%		142.42%		154.40%

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.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,170.50	$	2.46	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION As of 10/31/13

Sector Percentage of
Total  Investments*

Capital Goods	63.09	%
Transportation	12.39
Software & Services	8.74
Commercial & Professional Services	5.92
Materials	4.40
Technology Hardware & Equipment	3.69
Pharmaceuticals, Biotechnology & Life Sciences	1.18
Other**	0.59
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 10/31/13

Security Percentage of
Total  Investments*

General Electric Co.	11.05	%
Boeing Co. (The)	3.76
United Technologies Corp.	3.72
3M Co.	3.39
United Parcel Service Inc. Class B	2.94
Union Pacific Corp.	2.91
Honeywell International Inc.	2.82
Caterpillar Inc.	2.20
Emerson Electric Co.	1.99
Accenture PLC Class A	1.97
TOTAL	36.75	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® U.S. FINANCIAL SERVICES ETF

Performance as of October 31, 2013

The iShares U.S. Financial Services ETF (the “Fund”), formerly the iShares Dow Jones U.S. Financial Services Index Fund, seeks to track the investment results of an index composed of U.S. equities in the financial services sector, as represented by the Dow Jones U.S. Financial Services Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 15.00%, net of fees, while the total return for the Index was 15.25%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		36.57%		36.64%		37.20%		36.57%		36.64%		37.20%
5 Years		6.40%		6.46%		6.77%		36.39%		36.73%		38.78%
10 Years		(0.84)%		(0.84)%		(0.44)%		(8.09)%		(8.12)%		(4.31)%

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.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,150.00	$	2.44	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Diversified Financial Services	30.79	%
Commercial Banks	28.70
Capital Markets	20.43
IT Services	9.73
Consumer Finance	8.21
Thrifts & Mortgage Finance	1.68
Other**	0.46
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Wells Fargo & Co.	10.83	%
J.P. Morgan Chase & Co.	10.18
Bank of America Corp.	7.87
Citigroup Inc.	7.79
Visa Inc. Class A	5.33
American Express Co.	3.98
MasterCard Inc. Class A	3.90
U.S. Bancorp	3.61
Goldman Sachs Group Inc. (The)	3.53
Capital One Financial Corp.	2.11
TOTAL	59.13	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

10 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. REAL ESTATE ETF

Performance as of October 31, 2013

The iShares U.S. Real Estate ETF (the “Fund”), formerly the iShares Dow Jones U.S. Real Estate Index Fund, seeks to track the investment results of an index composed of U.S. equities in the real estate sector, as represented by the Dow Jones U.S. Real Estate Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -8.16%, net of fees, while the total return for the Index was -7.74%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.61%		7.65%		8.41%		7.61%		7.65%		8.41%
5 Years		14.15%		14.22%		14.70%		93.80%		94.43%		98.52%
10 Years		8.23%		8.25%		8.64%		120.50%		120.92%		129.10%

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	918.40	$	2.18	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Specialized REITs	33.98	%
Retail REITs	21.02
Residential REITs	12.54
Office REITs	10.63
Mortgage REITs	6.92
Diversified REITs	6.52
Industrial REITs	3.99
Real Estate Services	2.74
Other**	1.66
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total Investments*

Simon Property Group Inc.	7.86	%
American Tower Corp.	5.14
Public Storage	3.95
Prologis Inc.	3.27
Ventas Inc.	3.13
HCP Inc.	3.09
Health Care REIT Inc.	3.05
Weyerhaeuser Co.	2.91
Equity Residential	2.88
Boston Properties Inc.	2.59
TOTAL	37.87	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MSCI KLD 400 SOCIAL ETF

Performance as of October 31, 2013

The iShares MSCI KLD 400 Social ETF (the “Fund”), formerly the iShares MSCI KLD 400 Social Index Fund, seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI KLD 400 Social 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.68%, net of fees, while the total return for the Index was 11.95%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		31.12%		31.22%		31.80%		31.12%		31.22%		31.80%
5 Years		14.70%		14.82%		15.29%		98.54%		99.58%		103.66%
Since Inception		5.48%		5.49%		6.01%		45.02%		45.12%		50.13%

The inception date of the Fund was 11/14/06. The first day of secondary market trading was 11/17/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,116.80	$	2.67	$	1,000.00	$	1,022.70	$	2.55		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 (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total Investments*

Information Technology	21.02	%
Health Care	16.75
Financials	15.41
Consumer Discretionary	13.92
Consumer Staples	12.31
Industrials	8.73
Energy	5.67
Materials	3.61
Utilities	1.76
Telecommunication Services	0.82
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total Investments*

Google Inc. Class A	4.24	%
Johnson & Johnson	3.95
Procter & Gamble Co. (The)	3.36
International Business Machines Corp.	2.87
Merck & Co. Inc.	2.07
PepsiCo Inc.	1.98
Intel Corp.	1.84
Cisco Systems Inc.	1.83
QUALCOMM Inc.	1.82
Home Depot Inc. (The)	1.73
TOTAL	25.69	%

12 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MSCI USA ESG SELECT ETF

Performance as of October 31, 2013

The iShares MSCI USA ESG Select ETF (the “Fund”), formerly the iShares MSCI USA ESG Select Social Index Fund, seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA ESG Select 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 9.86%, net of fees, while the total return for the Index was 10.14%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		27.44%		27.57%		28.06%		27.44%		27.57%		28.06%
5 Years		13.80%		13.75%		14.37%		90.86%		90.43%		95.71%
Since Inception		6.21%		6.22%		6.74%		69.55%		69.76%		77.12%

The inception date of the Fund was 1/24/05. The first day of secondary market trading was 1/28/05.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,098.60	$	2.64	$	1,000.00	$	1,022.70	$	2.55		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 (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total Investments*

Information Technology	20.41	%
Financials	19.98
Consumer Discretionary	11.48
Health Care	10.82
Industrials	10.48
Energy	7.93
Consumer Staples	7.65
Materials	6.61
Utilities	4.64
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total Investments*

American Express Co.	3.23	%
NextEra Energy Inc.	3.22
Marsh & McLennan Companies Inc.	3.09
Eaton Corp. PLC	2.91
Apple Inc.	2.71
Microsoft Corp.	2.67
International Business Machines Corp.	2.62
Spectra Energy Corp.	2.49
Ecolab Inc.	2.48
Travelers Companies Inc. (The)	2.45
TOTAL	27.87	%

FUND PERFORMANCE OVERVIEWS 13

Fund Performance Overview

iSHARES^® COHEN & STEERS REIT ETF

Performance as of October 31, 2013

The iShares Cohen & Steers REIT ETF (the “Fund”), formerly the iShares Cohen & Steers Realty Majors Index Fund, seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITs), as represented by the Cohen & Steers Realty Majors 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -8.42%, net of fees, while the total return for the Index was -8.28%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		6.81%		6.86%		7.20%		6.81%		6.86%		7.20%
5 Years		13.47%		13.43%		13.68%		88.14%		87.81%		89.85%
10 Years		9.00%		9.01%		9.37%		136.63%		136.89%		144.84%

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	915.80	$	1.69	$	1,000.00	$	1,023.40	$	1.79		0.35%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total Investments*

Specialized REITs	30.05	%
Retail REITs	26.76
Residential REITs	17.01
Office REITs	13.34
Diversified REITs	6.50
Industrial REITs	6.34
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total Investments*

Simon Property Group Inc.	7.84	%
Public Storage	7.68
Prologis Inc.	6.34
Ventas Inc.	6.09
HCP Inc.	6.01
Health Care REIT Inc.	5.87
Equity Residential	5.35
Boston Properties Inc.	5.00
AvalonBay Communities Inc.	4.84
Vornado Realty Trust	4.83
TOTAL	59.85	%

14 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2013 and held through October 31, 2013, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

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

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

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

ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES 15

Schedule of Investments (Unaudited)

iSHARES^® U.S. BASIC MATERIALS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.85%
CHEMICALS — 74.15%
Air Products and Chemicals Inc.		271,197	$	29,563,185
Airgas Inc.		85,565		9,332,575
Albemarle Corp.		105,281		6,968,549
Ashland Inc.		93,058		8,612,518
Axiall Corp.		90,255		3,510,017
Cabot Corp.		76,715		3,575,686
Celanese Corp. Series A		206,512		11,566,737
CF Industries Holdings Inc.		74,094		15,974,666
Chemtura Corp.a,b		126,217		3,092,317
Cytec Industries Inc.		47,137		3,916,613
Dow Chemical Co. (The)		1,565,541		61,791,903
E.I. du Pont de Nemours and Co.		1,194,558		73,106,950
Eastman Chemical Co.		199,515		15,719,787
Ecolab Inc.		350,873		37,192,538
FMC Corp.		176,384		12,833,700
H.B. Fuller Co.		65,045		3,113,704
Huntsman Corp.		252,946		5,873,406
International Flavors & Fragrances Inc.		105,730		8,738,584
LyondellBasell Industries NV Class A		579,576		43,236,370
Minerals Technologies Inc.		44,898		2,542,574
Monsanto Co.		689,633		72,328,709
Mosaic Co. (The)		440,669		20,204,674
NewMarket Corp.b		14,814		4,612,487
Olin Corp.		103,495		2,329,672
PolyOne Corp.		125,397		3,799,529
PPG Industries Inc.		184,867		33,753,017
Praxair Inc.		381,417		47,566,514
Rockwood Holdings Inc.		100,489		6,355,929
RPM International Inc.		171,882		6,655,271
Sensient Technologies Corp.		64,628		3,369,058
Sigma-Aldrich Corp.		155,540		13,443,322
W.R. Grace & Co.a		99,142		9,087,356
Westlake Chemical Corp.		25,872		2,779,170
				586,547,087
ELECTRICAL EQUIPMENT — 0.34%
Polypore International Inc.a,b		60,448		2,732,250
				2,732,250
METALS & MINING — 18.92%
Alcoa Inc.		1,383,515		12,825,184
Allegheny Technologies Inc.		139,769		4,626,354
Carpenter Technology Corp.		68,350		4,055,206

Security	Shares		Value
Cliffs Natural Resources Inc.b		198,258	$	5,091,265
Coeur Mining Inc.a,b		131,639		1,607,312
Commercial Metals Co.		151,579		2,782,990
Compass Minerals International Inc.		43,225		3,218,966
Freeport-McMoRan Copper & Gold Inc.		1,342,598		49,353,903
Kaiser Aluminum Corp.		24,234		1,634,583
Newmont Mining Corp.		643,758		17,548,843
Nucor Corp.		411,602		21,308,636
Reliance Steel & Aluminum Co.		99,597		7,299,464
Royal Gold Inc.		84,234		4,046,601
Steel Dynamics Inc.		285,792		5,135,682
Stillwater Mining Co.a,b		154,389		1,684,384
United States Steel Corp.b		187,330		4,662,644
Worthington Industries Inc.		68,461		2,775,409
				149,657,426
OIL, GAS & CONSUMABLE FUELS — 2.48%
Alpha Natural Resources Inc.a,b		286,864		2,008,048
CONSOL Energy Inc.		296,025		10,804,912
Peabody Energy Corp.		349,112		6,800,702
				19,613,662
PAPER & FOREST PRODUCTS — 3.96%
Domtar Corp.		42,179		3,572,983
International Paper Co.		576,885		25,734,840
Resolute Forest Products Inc.a,b		124,626		1,992,770
				31,300,593
TOTAL COMMON STOCKS
(Cost: $853,342,241)				789,851,018
SHORT-TERM INVESTMENTS — 1.93%
MONEY MARKET FUNDS — 1.93%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		13,794,437		13,794,437
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		801,691		801,691
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		629,547		629,547
				15,225,675
TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,225,675)				15,225,675

16 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. BASIC MATERIALS ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.78%
(Cost: $868,567,916)	$	805,076,693
Other Assets, Less Liabilities — (1.78)%		(14,062,449	)
NET ASSETS — 100.00%	$	791,014,244

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited)

iSHARES^® U.S. CONSUMER GOODS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.75%
AUTO COMPONENTS — 5.45%
Autoliv Inc.		23,239	$	2,073,617
BorgWarner Inc.		27,770		2,863,920
Cooper Tire & Rubber Co.		14,701		382,373
Dana Holding Corp.		35,567		697,113
Delphi Automotive PLC		68,454		3,915,569
Gentex Corp.		35,008		1,030,635
Goodyear Tire & Rubber Co. (The)		59,568		1,249,737
Johnson Controls Inc.		165,906		7,656,562
Lear Corp.		19,563		1,513,981
Tenneco Inc.a,b		14,843		787,718
TRW Automotive Holdings Corp.a		28,419		2,134,551
Visteon Corp.a		12,124		934,639
				25,240,415
AUTOMOBILES — 6.92%
Ford Motor Co.		955,360		16,346,209
General Motors Co.a		228,243		8,433,579
Harley-Davidson Inc.		54,094		3,464,180
Tesla Motors Inc.a,b		19,734		3,156,256
Thor Industries Inc.		10,768		624,652
				32,024,876
BEVERAGES — 18.36%
Beam Inc.		39,277		2,643,342
Brown-Forman Corp. Class B NVS		39,417		2,876,652
Coca-Cola Co. (The)		924,524		36,583,415
Coca-Cola Enterprises Inc.		60,326		2,517,404
Constellation Brands Inc. Class Aa		40,240		2,627,672
Dr Pepper Snapple Group Inc.		49,405		2,339,327
Molson Coors Brewing Co. Class B NVS		38,300		2,068,200
Monster Beverage Corp.a		32,929		1,884,527
PepsiCo Inc.		373,982		31,448,146
				84,988,685
CHEMICALS — 0.13%
Scotts Miracle-Gro Co. (The) Class A		10,641		624,840
				624,840
COMMERCIAL SERVICES & SUPPLIES — 0.19%
Herman Miller Inc.		14,278		433,195
HNI Corp.		10,950		425,407
				858,602
DISTRIBUTORS — 1.29%
Genuine Parts Co.		37,560		2,960,855

Security	Shares		Value
LKQ Corp.a		72,822	$	2,405,310
Pool Corp.		11,318		615,473
				5,981,638
DIVERSIFIED FINANCIAL SERVICES — 0.47%
Leucadia National Corp.		76,070		2,155,824
				2,155,824
FOOD PRODUCTS — 16.14%
Archer-Daniels-Midland Co.		159,849		6,537,824
B&G Foods Inc. Class A		12,756		431,791
Bunge Ltd.		35,715		2,933,273
Campbell Soup Co.		43,343		1,845,111
ConAgra Foods Inc.		102,358		3,256,008
Darling International Inc.a		28,632		666,267
Dean Foods Co.a		22,758		443,781
Flowers Foods Inc.		42,393		1,074,239
General Mills Inc.		155,630		7,846,865
Green Mountain Coffee Roasters Inc.a,b		31,821		1,998,677
Hain Celestial Group Inc.a,b		11,557		961,889
Hershey Co. (The)		36,264		3,598,839
Hillshire Brands Co.		29,819		978,958
Hormel Foods Corp.		32,596		1,416,622
Ingredion Inc.		18,781		1,235,038
J.M. Smucker Co. (The)		25,499		2,835,744
Kellogg Co.		62,404		3,947,053
Kraft Foods Group Inc.		144,421		7,853,614
Lancaster Colony Corp.		4,676		388,061
McCormick & Co. Inc. NVS		32,033		2,215,082
Mead Johnson Nutrition Co. Class A		49,077		4,007,628
Mondelez International Inc. Class A		431,806		14,525,954
Post Holdings Inc.a		7,870		338,016
TreeHouse Foods Inc.a,b		8,856		648,791
Tyson Foods Inc. Class A		67,547		1,869,025
WhiteWave Foods Co. Class Aa,b		41,926		838,939
				74,693,089
HOUSEHOLD DURABLES — 4.23%
D.R. Horton Inc.		68,796		1,303,684
Harman International Industries Inc.		16,486		1,335,696
Jarden Corp.a		28,631		1,585,012
Leggett & Platt Inc.		34,401		1,023,086
Lennar Corp. Class A		40,188		1,428,683
M.D.C. Holdings Inc.		9,389		274,065

18 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. CONSUMER GOODS ETF

October 31, 2013

Security	Shares		Value
Mohawk Industries Inc.a		14,791	$	1,958,624
Newell Rubbermaid Inc.		69,920		2,071,730
NVR Inc.a		1,034		948,509
PulteGroup Inc.		84,622		1,493,578
Ryland Group Inc. (The)b		11,138		447,748
Tempur Sealy International Inc.a,b		14,643		561,559
Toll Brothers Inc.a		36,853		1,211,727
Tupperware Brands Corp.		12,523		1,122,687
Whirlpool Corp.		19,232		2,808,064
				19,574,452
HOUSEHOLD PRODUCTS — 18.15%
Church & Dwight Co. Inc.		33,634		2,191,255
Clorox Co. (The)		31,641		2,853,702
Colgate-Palmolive Co.		213,710		13,833,448
Energizer Holdings Inc.		15,081		1,479,597
Kimberly-Clark Corp.		92,888		10,031,904
Procter & Gamble Co. (The)		664,142		53,629,467
				84,019,373
LEISURE EQUIPMENT & PRODUCTS — 1.77%
Brunswick Corp.		21,928		989,611
Hasbro Inc.		27,964		1,444,340
Mattel Inc.		83,553		3,707,247
Polaris Industries Inc.		15,545		2,035,618
				8,176,816
MACHINERY — 1.49%
Middleby Corp. (The)a,b		4,627		1,053,336
Snap-on Inc.		14,088		1,466,138
Stanley Black & Decker Inc.		38,819		3,070,195
WABCO Holdings Inc.a		15,166		1,299,423
				6,889,092
PERSONAL PRODUCTS — 1.99%
Avon Products Inc.		105,252		1,841,910
Estee Lauder Companies Inc. (The) Class A		62,005		4,399,875
Herbalife Ltd.b		20,461		1,326,282
Nu Skin Enterprises Inc. Class A		14,208		1,661,341
				9,229,408
SOFTWARE — 0.96%
Activision Blizzard Inc.		103,128		1,716,050
Electronic Arts Inc.a		74,439		1,954,024
Take-Two Interactive Software Inc.a		21,373		382,790
TiVo Inc.a,b		30,813		409,505
				4,462,369

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 8.83%
Carter’s Inc.		14,350	$	992,302
Coach Inc.		68,366		3,464,789
Crocs Inc.a,b		21,567		262,686
Deckers Outdoor Corp.a,b		8,406		578,585
Fifth & Pacific Companies Inc.a		29,727		787,468
Fossil Group Inc.a		12,170		1,544,860
Hanesbrands Inc.		23,968		1,632,700
Iconix Brand Group Inc.a,b		13,135		474,042
Lululemon Athletica Inc.a,b		25,607		1,768,163
Michael Kors Holdings Ltd.a		43,329		3,334,167
Nike Inc. Class B		181,363		13,740,061
PVH Corp.		19,793		2,465,614
Ralph Lauren Corp.		14,701		2,435,074
Steven Madden Ltd.a,b		14,574		534,574
Under Armour Inc. Class Aa,b		19,409		1,575,040
VF Corp.		21,326		4,585,090
Wolverine World Wide Inc.		12,159		702,061
				40,877,276
TOBACCO — 13.38%
Altria Group Inc.		486,063		18,096,125
Lorillard Inc.		90,672		4,625,179
Philip Morris International Inc.		392,493		34,978,976
Reynolds American Inc.		76,773		3,943,829
Universal Corp.		5,617		297,869
				61,941,978
TOTAL COMMON STOCKS
(Cost: $376,734,029)				461,738,733
SHORT-TERM INVESTMENTS — 3.31%
MONEY MARKET FUNDS — 3.31%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		13,929,293		13,929,293
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		809,528		809,528
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		612,835		612,835
				15,351,656
TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,351,656)				15,351,656

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. CONSUMER GOODS ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 103.06%
(Cost: $392,085,685)	$	477,090,389
Other Assets, Less Liabilities — (3.06)%		(14,180,678	)
NET ASSETS — 100.00%	$	462,909,711

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

20 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. CONSUMER SERVICES ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.91%
AIRLINES — 2.37%
Alaska Air Group Inc.		12,890	$	910,807
Delta Air Lines Inc.		158,310		4,176,218
JetBlue Airways Corp.a,b		40,121		284,458
Southwest Airlines Co.		130,337		2,244,403
Spirit Airlines Inc.a,b		13,378		577,261
United Continental Holdings Inc.a,b		65,592		2,226,848
US Airways Group Inc.a		35,477		779,430
				11,199,425
COMMERCIAL SERVICES & SUPPLIES — 0.33%
Copart Inc.a		20,628		664,841
KAR Auction Services Inc.		19,842		589,704
Rollins Inc.		11,866		327,976
				1,582,521
DIVERSIFIED CONSUMER SERVICES — 0.88%
Apollo Group Inc. Class Aa		18,291		488,187
DeVry Inc.		10,463		375,622
H&R Block Inc.		50,561		1,437,955
Hillenbrand Inc.		11,609		327,606
Service Corp. International		39,121		704,569
Sotheby’s		12,620		654,978
Weight Watchers International Inc.b		4,956		159,137
				4,148,054
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.07%
Dolby Laboratories Inc. Class A		9,022		322,446
				322,446
FOOD & STAPLES RETAILING — 15.32%
Casey’s General Stores Inc.		7,082		516,136
Costco Wholesale Corp.		80,550		9,504,900
CVS Caremark Corp.		226,586		14,107,245
Fresh Market Inc. (The)a,b		7,399		376,683
Harris Teeter Supermarkets Inc.		9,140		450,785
Kroger Co. (The)		95,623		4,096,489
Rite Aid Corp.a,b		154,706		824,583
Safeway Inc.		44,550		1,554,795
Sysco Corp.		108,576		3,511,348
United Natural Foods Inc.a,b		9,114		651,195
Wal-Mart Stores Inc.		300,257		23,044,725
Walgreen Co.		160,368		9,500,200
Whole Foods Market Inc.		68,728		4,338,799
				72,477,883

Security	Shares		Value
HEALTH CARE PROVIDERS & SERVICES — 3.13%
AmerisourceBergen Corp.		42,573	$	2,781,294
Cardinal Health Inc.		62,646		3,674,815
Chemed Corp.b		3,421		232,012
McKesson Corp.		42,170		6,592,858
Omnicare Inc.		19,102		1,053,475
VCA Antech Inc.a		16,365		465,584
				14,800,038
HOTELS, RESTAURANTS & LEISURE — 14.35%
Bally Technologies Inc.a,b		7,139		522,146
Bob Evans Farms Inc.		5,034		287,391
Brinker International Inc.		12,226		543,079
Carnival Corp.		80,680		2,795,562
Cheesecake Factory Inc. (The)		9,167		433,141
Chipotle Mexican Grill Inc.a,b		5,689		2,997,932
Choice Hotels International Inc.		5,842		272,179
Cracker Barrel Old Country Store Inc.		4,398		483,208
Darden Restaurants Inc.		23,994		1,236,411
Domino’s Pizza Inc.		10,274		688,974
Dunkin’ Brands Group Inc.		19,598		934,433
Hyatt Hotels Corp. Class Aa		10,708		509,701
International Game Technology		48,128		904,806
Jack in the Box Inc.a		7,992		325,115
Las Vegas Sands Corp.		71,517		5,021,924
Life Time Fitness Inc.a,b		7,227		328,250
Marriott International Inc. Class A		41,957		1,891,422
Marriott Vacations Worldwide Corp.a,b		5,622		281,550
McDonald’s Corp.		184,398		17,798,095
MGM Resorts Internationala		61,386		1,168,789
Norwegian Cruise Line Holdings Ltd.a		8,632		276,397
Panera Bread Co. Class Aa		5,177		817,552
Papa John’s International Inc.		2,956		223,680
Penn National Gaming Inc.a		12,677		741,731
Royal Caribbean Cruises Ltd.		29,935		1,258,467
Six Flags Entertainment Corp.		17,667		664,456
Starbucks Corp.		138,602		11,233,692
Starwood Hotels & Resorts Worldwide Inc.		35,960		2,647,375
Vail Resorts Inc.		6,637		467,577
Wendy’s Co. (The)		52,344		454,869
Wyndham Worldwide Corp.		24,542		1,629,589
Wynn Resorts Ltd.		14,907		2,478,289

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

October 31, 2013

Security	Shares		Value
Yum! Brands Inc.		82,311	$	5,565,870
				67,883,652
INTERNET & CATALOG RETAIL — 9.65%
Amazon.com Inc.a		68,266		24,850,872
Expedia Inc.		19,782		1,164,764
Groupon Inc.a,b		68,678		627,030
HSN Inc.		6,185		324,094
Liberty Interactive Corp. Series Aa		89,310		2,407,798
Liberty Ventures Series Aa		6,523		700,375
Netflix Inc.a		10,874		3,506,648
Priceline.com Inc.a		9,500		10,011,385
Shutterfly Inc.a,b		6,981		343,046
TripAdvisor Inc.a		20,595		1,703,412
				45,639,424
INTERNET SOFTWARE & SERVICES — 2.51%
eBay Inc.a		214,910		11,327,906
OpenTable Inc.a,b		4,209		292,442
ValueClick Inc.a,b		12,892		247,655
				11,868,003
IT SERVICES — 0.09%
Acxiom Corp.a,b		13,663		454,021
				454,021
MEDIA — 26.93%
AMC Networks Inc. Class Aa		10,948		767,345
Cablevision NY Group Class A		39,495		614,147
CBS Corp. Class B NVS		103,748		6,135,657
Charter Communications Inc. Class Aa		12,420		1,667,261
Cinemark Holdings Inc.		19,175		629,132
Comcast Corp. Class A		482,459		22,955,399
DIRECTVa		94,174		5,884,933
Discovery Communications Inc. Series Aa		42,598		3,787,814
DISH Network Corp. Class A		38,703		1,865,485
DreamWorks Animation SKG Inc. Class Aa,b		13,144		450,051
Gannett Co. Inc.		42,303		1,170,524
Interpublic Group of Companies Inc. (The)		77,936		1,309,325
John Wiley & Sons Inc. Class A		8,546		429,778
Lamar Advertising Co. Class Aa		12,061		551,308
Liberty Global PLC Series Aa		69,285		5,429,866
Liberty Media Corp.a		19,567		2,991,990
Live Nation Entertainment Inc.a		26,011		505,654

Security	Shares		Value
Madison Square Garden Inc. Class Aa		11,263	$	681,637
Meredith Corp.		6,834		350,584
Morningstar Inc.		3,945		316,744
New York Times Co. (The) Class Ab		23,190		320,718
News Corp. Class A NVSa		91,694		1,613,814
Omnicom Group Inc.		47,401		3,228,482
Regal Entertainment Group Class A		14,588		277,318
Scripps Networks Interactive Inc. Class A		20,163		1,623,122
Sinclair Broadcast Group Inc. Class A		13,424		430,373
Sirius XM Radio Inc.		580,707		2,189,265
Starz Series Aa		17,668		532,690
Time Warner Cable Inc.		52,714		6,333,587
Time Warner Inc.		169,704		11,665,453
Twenty-First Century Fox Inc. Class A		366,374		12,486,026
Viacom Inc. Class B NVS		80,054		6,667,698
Walt Disney Co. (The)		306,465		21,020,434
Washington Post Co. (The) Class B		809		520,446
				127,404,060
MULTILINE RETAIL — 4.91%
Big Lots Inc.a		10,759		391,197
Dillard’s Inc. Class A		4,432		363,335
Dollar General Corp.a		54,950		3,175,011
Dollar Tree Inc.a		41,096		2,400,006
Family Dollar Stores Inc.		17,843		1,229,026
J.C. Penney Co. Inc.a,b		56,113		420,848
Kohl’s Corp.		37,656		2,138,861
Macy’s Inc.		69,342		3,197,360
Nordstrom Inc.		26,618		1,609,590
Saks Inc.a		18,882		301,923
Sears Holdings Corp.a,b		8,072		468,822
Target Corp.		116,414		7,542,463
				23,238,442
PROFESSIONAL SERVICES — 0.76%
Dun & Bradstreet Corp. (The)		7,161		779,045
IHS Inc. Class Aa		11,379		1,240,880
Nielsen Holdings NV		39,699		1,565,729
				3,585,654

22 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

October 31, 2013

Security	Shares		Value
ROAD & RAIL — 0.47%
Avis Budget Group Inc.a		19,914	$	623,906
Hertz Global Holdings Inc.a		68,888		1,581,668
				2,205,574
SOFTWARE — 0.17%
FactSet Research Systems Inc.b		7,431		809,533
				809,533
SPECIALTY RETAIL — 17.91%
Aaron’s Inc.		14,043		398,400
Abercrombie & Fitch Co. Class A		14,101		528,505
Advance Auto Parts Inc.		13,449		1,333,872
Aeropostale Inc.a,b		14,503		134,733
American Eagle Outfitters Inc.		31,304		484,899
ANN INC.a,b		8,460		299,146
Ascena Retail Group Inc.a,b		23,536		465,777
AutoNation Inc.a		11,845		571,284
AutoZone Inc.a		6,557		2,850,262
Bed Bath & Beyond Inc.a		40,193		3,107,723
Best Buy Co. Inc.		49,809		2,131,825
Buckle Inc. (The)b		5,177		253,362
Cabela’s Inc.a,b		8,592		509,677
CarMax Inc.a		41,189		1,935,471
Chico’s FAS Inc.		29,691		509,201
Children’s Place Retail Stores Inc. (The)a,b		4,077		222,563
CST Brands Inc.		11,148		359,412
Dick’s Sporting Goods Inc.		18,775		999,018
DSW Inc. Class A		6,731		590,107
Express Inc.a		16,417		381,039
Foot Locker Inc.		27,416		951,335
GameStop Corp. Class A		21,580		1,183,016
Gap Inc. (The)		50,910		1,883,161
Genesco Inc.a,b		4,437		302,204
GNC Holdings Inc. Class A		18,139		1,066,936
Group 1 Automotive Inc.		3,921		250,944
Guess? Inc.		10,969		342,781
Home Depot Inc. (The)		264,233		20,581,108
L Brands Inc.		44,881		2,809,999
Lowe’s Companies Inc.		194,010		9,657,818
Lumber Liquidators Holdings Inc.a,b		5,077		579,743
Men’s Wearhouse Inc. (The)		8,379		354,432
Murphy USA Inc.a		8,195		332,553
O’Reilly Automotive Inc.a,b		20,039		2,481,029
PetSmart Inc.		19,187		1,396,046

Security	Shares		Value
Pier 1 Imports Inc.		19,715	$	411,649
Rent-A-Center Inc.		9,844		337,059
Ross Stores Inc.		39,935		3,088,972
Sally Beauty Holdings Inc.a,b		27,581		725,932
Signet Jewelers Ltd.		14,869		1,110,120
Staples Inc.		121,934		1,965,576
Tiffany & Co.		20,296		1,606,834
TJX Companies Inc. (The)		131,929		8,019,964
Tractor Supply Co.		25,724		1,835,407
Ulta Salon, Cosmetics & Fragrance Inc.a		11,745		1,513,343
Urban Outfitters Inc.a		20,136		762,752
Vitamin Shoppe Inc.a		5,584		261,945
Williams-Sonoma Inc.		16,447		862,481
				84,741,415
TRADING COMPANIES & DISTRIBUTORS — 0.06%
Beacon Roofing Supply Inc.a		8,999		312,355
				312,355
TOTAL COMMON STOCKS (Cost: $358,475,018)				472,672,500
SHORT-TERM INVESTMENTS — 2.57%
MONEY MARKET FUNDS — 2.57%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		11,067,984		11,067,984
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		643,238		643,238
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		461,185		461,185
				12,172,407
TOTAL SHORT-TERM INVESTMENTS
(Cost: $12,172,407)				12,172,407

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 102.48%
(Cost: $370,647,425)	$	484,844,907
Other Assets, Less Liabilities — (2.48)%		(11,726,923	)
NET ASSETS — 100.00%	$	473,117,984

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

24 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. FINANCIALS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.90%
CAPITAL MARKETS — 11.67%
Affiliated Managers Group Inc.a		20,848	$	4,116,229
Ameriprise Financial Inc.		77,915		7,833,574
Bank of New York Mellon Corp. (The)		452,983		14,404,859
BlackRock Inc.b		49,588		14,916,566
Charles Schwab Corp. (The)		455,356		10,313,813
E*TRADE Financial Corp.a		113,471		1,918,795
Eaton Vance Corp. NVS		47,743		1,996,135
Federated Investors Inc. Class B		37,311		1,011,874
Financial Engines Inc.		19,593		1,094,661
Franklin Resources Inc.		160,087		8,622,286
Goldman Sachs Group Inc. (The)		164,434		26,450,853
Greenhill & Co. Inc.		10,371		532,032
Invesco Ltd.		174,513		5,889,814
Janus Capital Group Inc.c		59,039		582,715
Legg Mason Inc.		42,819		1,647,247
LPL Financial Holdings Inc.		31,936		1,301,073
Morgan Stanley		547,501		15,729,704
Northern Trust Corp.		89,002		5,021,493
Raymond James Financial Inc.		48,535		2,215,623
SEI Investments Co.		57,115		1,895,647
State Street Corp.		175,602		12,304,432
Stifel Financial Corp.a,c		23,399		958,189
T. Rowe Price Group Inc.		102,443		7,930,113
TD Ameritrade Holding Corp.		93,317		2,543,821
Waddell & Reed Financial Inc. Class A		33,757		2,084,495
				153,316,043
COMMERCIAL BANKS — 16.40%
Associated Banc-Corp		65,447		1,064,168
BancorpSouth Inc.		33,171		733,079
Bank of Hawaii Corp.		17,587		1,019,694
BB&T Corp.		277,167		9,415,363
BOK Financial Corp.		8,126		497,555
CapitalSource Inc.		77,446		1,012,994
Cathay General Bancorp		29,010		714,516
CIT Group Inc.a		79,361		3,822,026
City National Corp.		18,654		1,345,140
Comerica Inc.		72,946		3,158,562
Commerce Bancshares Inc.		30,483		1,402,523
Cullen/Frost Bankers Inc.		20,668		1,463,088
East West Bancorp Inc.		54,309		1,829,670
F.N.B. Corp.		60,873		761,521

Security	Shares		Value
Fifth Third Bancorp		349,411	$	6,649,291
First Financial Bankshares Inc.		12,030		739,965
First Horizon National Corp.		95,415		1,016,170
First Niagara Financial Group Inc.		140,027		1,544,498
First Republic Bank		48,896		2,497,119
FirstMerit Corp.		65,408		1,469,064
Fulton Financial Corp.		77,161		942,136
Glacier Bancorp Inc.c		29,023		801,905
Hancock Holding Co.		32,374		1,061,220
Huntington Bancshares Inc.		327,212		2,879,466
IBERIABANK Corp.		11,749		686,494
International Bancshares Corp.		22,527		514,742
KeyCorp		359,329		4,502,392
M&T Bank Corp.c		51,247		5,766,825
MB Financial Inc.		21,690		644,193
National Penn Bancshares Inc.		46,643		483,688
Old National Bancorp		40,094		582,967
PNC Financial Services Group Inc. (The)b		209,271		15,387,697
Popular Inc.a,c		40,831		1,030,983
PrivateBancorp Inc.		25,731		626,807
Prosperity Bancshares Inc.		22,133		1,382,206
Regions Financial Corp.		550,282		5,299,216
Signature Banka,c		18,699		1,903,932
SunTrust Banks Inc.		212,269		7,140,729
Susquehanna Bancshares Inc.		73,748		869,120
SVB Financial Groupa,c		17,978		1,721,933
Synovus Financial Corp.		386,336		1,255,592
TCF Financial Corp.		64,991		986,563
Texas Capital Bancshares Inc.a,c		16,145		840,347
Trustmark Corp.		26,576		721,804
U.S. Bancorp		724,109		27,052,712
UMB Financial Corp.		14,576		858,818
Umpqua Holdings Corp.		44,268		724,667
United Bankshares Inc.		8,606		254,565
Valley National Bancorp		78,659		766,925
Webster Financial Corp.		35,694		995,506
Wells Fargo & Co.		1,902,149		81,202,741
Westamerica Bancorp		10,559		543,577
Wintrust Financial Corp.		15,773		686,283
Zions Bancorp		72,905		2,068,315
				215,343,072
CONSUMER FINANCE — 4.69%
American Express Co.		365,275		29,879,495

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. FINANCIALS ETF

October 31, 2013

Security	Shares		Value
Capital One Financial Corp.		230,464	$	15,825,963
Cash America International Inc.c		11,300		445,785
Discover Financial Services		190,504		9,883,347
Portfolio Recovery Associates Inc.a,c		20,037		1,191,200
SLM Corp.		172,013		4,363,970
				61,589,760
DIVERSIFIED FINANCIAL SERVICES — 23.85%
Bank of America Corp.		4,229,245		59,040,260
Berkshire Hathaway Inc. Class Ba		708,566		81,541,775
CBOE Holdings Inc.		34,536		1,674,996
Citigroup Inc.		1,197,161		58,397,514
CME Group Inc.		123,741		9,182,820
ING U.S. Inc.		25,711		797,555
IntercontinentalExchange Inc.a,c		28,651		5,521,907
J.P. Morgan Chase & Co.		1,481,834		76,373,724
McGraw Hill Financial Inc.		108,376		7,551,640
Moody’s Corp.		76,448		5,401,816
MSCI Inc. Class Aa,c		47,708		1,945,055
NASDAQ OMX Group Inc. (The)		45,536		1,613,340
NYSE Euronext Inc.		95,549		4,206,067
				313,248,469
INSURANCE — 18.41%
ACE Ltd.		133,920		12,781,325
Aflac Inc.		183,131		11,899,852
Alleghany Corp.a		6,626		2,686,313
Allied World Assurance Co. Holdings Ltd.		13,712		1,484,872
Allstate Corp. (The)		182,494		9,683,132
American Financial Group Inc.		28,070		1,579,218
American International Group Inc.		581,225		30,020,271
Aon PLC		121,072		9,575,584
Arch Capital Group Ltd.a,c		46,305		2,683,838
Argo Group International Holdings Ltd.c		10,945		459,471
Arthur J. Gallagher & Co.		50,403		2,391,622
Aspen Insurance Holdings Ltd.c		26,628		1,038,758
Assurant Inc.		29,566		1,729,020
Assured Guaranty Ltd.		66,613		1,365,567
Axis Capital Holdings Ltd.c		41,932		1,988,415
Brown & Brown Inc.		46,716		1,491,642
Chubb Corp. (The)		98,125		9,035,350
Cincinnati Financial Corp.		58,118		2,905,900

Security	Shares		Value
CNO Financial Group Inc.		87,884	$	1,369,233
Endurance Specialty Holdings Ltd.c		17,486		966,801
Erie Indemnity Co. Class A		9,783		702,615
Everest Re Group Ltd.c		19,177		2,948,272
Fidelity National Financial Inc. Class A		85,188		2,398,042
First American Financial Corp.		42,176		1,090,671
Genworth Financial Inc. Class Aa		194,939		2,832,464
Hanover Insurance Group Inc. (The)		17,390		1,018,011
Hartford Financial Services Group Inc. (The)		179,314		6,042,882
HCC Insurance Holdings Inc.		39,478		1,802,171
Kemper Corp.		20,651		764,500
Lincoln National Corp.		104,296		4,736,081
Loews Corp.		120,579		5,825,171
Markel Corp.a		5,521		2,924,308
Marsh & McLennan Companies Inc.		216,422		9,912,128
MBIA Inc.a		56,816		645,998
Mercury General Corp.		9,676		450,515
MetLife Inc.		440,883		20,858,175
Montpelier Re Holdings Ltd.c		17,345		478,895
Old Republic International Corp.		95,489		1,603,260
PartnerRe Ltd.		18,706		1,874,528
Platinum Underwriters Holdings Ltd.c		11,550		718,295
Primerica Inc.		21,567		926,303
Principal Financial Group Inc.		107,939		5,122,785
ProAssurance Corp.		24,388		1,105,264
Progressive Corp. (The)		217,967		5,660,603
Protective Life Corp.		31,044		1,430,508
Prudential Financial Inc.		183,086		14,901,370
Reinsurance Group of America Inc.		27,995		1,992,684
RenaissanceRe Holdings Ltd.c		17,601		1,649,390
RLI Corp.		6,840		646,243
Selective Insurance Group Inc.		21,947		576,548
StanCorp Financial Group Inc.		17,577		1,035,285
Torchmark Corp.		36,119		2,631,630
Travelers Companies Inc. (The)		147,016		12,687,481
Unum Group		103,958		3,299,627
Validus Holdings Ltd.c		41,156		1,624,839
W.R. Berkley Corp.		43,228		1,898,141

26 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. FINANCIALS ETF

October 31, 2013

Security	Shares		Value
White Mountains Insurance Group Ltd.		2,192	$	1,280,281
Willis Group Holdings PLC		69,052		3,112,174
XL Group PLC		112,865		3,450,283
				241,794,605
IT SERVICES — 5.56%
MasterCard Inc. Class A		40,841		29,287,081
Visa Inc. Class A		203,216		39,966,491
Western Union Co.		217,652		3,704,437
				72,958,009
REAL ESTATE INVESTMENT TRUSTS (REITs) — 17.48%
Alexandria Real Estate Equities Inc.		28,095		1,848,089
American Campus Communities Inc.		41,324		1,428,157
American Capital Agency Corp.		156,227		3,393,250
American Realty Capital Properties Inc.c		72,711		964,875
American Tower Corp.		155,529		12,341,226
Annaly Capital Management Inc.		373,577		4,404,473
Apartment Investment and Management Co. Class A		57,543		1,610,053
ARMOUR Residential REIT Inc.		147,979		609,673
AvalonBay Communities Inc.		47,923		5,992,771
BioMed Realty Trust Inc.		75,773		1,509,398
Boston Properties Inc.		60,031		6,213,209
Brandywine Realty Trustc		61,902		880,865
BRE Properties Inc. Class Ac		30,433		1,661,946
Camden Property Trust		33,659		2,160,908
CBL & Associates Properties Inc.c		67,009		1,327,448
Chimera Investment Corp.		406,479		1,231,631
Cole Real Estate Investment Inc.		164,761		2,339,606
CommonWealth REIT		43,862		1,068,917
Corporate Office Properties Trust		34,453		847,544
Corrections Corp. of America		46,164		1,708,068
CubeSmart		49,559		905,443
CYS Investments Inc.		69,072		586,421
DCT Industrial Trust Inc.		123,469		956,885
DDR Corp.c		102,222		1,732,663
DiamondRock Hospitality Co.		77,091		878,067
Digital Realty Trust Inc.c		50,650		2,413,979
Douglas Emmett Inc.c		51,178		1,275,868
Duke Realty Corp.		128,049		2,121,772
DuPont Fabros Technology Inc.c		25,467		632,855

Security	Shares		Value
EastGroup Properties Inc.c		11,953	$	760,928
EPR Properties		19,950		1,024,832
Equity Lifestyle Properties, Inc.		31,394		1,192,658
Equity Residential		131,975		6,910,211
Essex Property Trust Inc.c		14,999		2,414,839
Extra Space Storage Inc.		41,837		1,924,084
Federal Realty Investment Trust		25,937		2,687,073
Franklin Street Properties Corp.		34,375		453,750
General Growth Properties Inc.		218,428		4,637,226
GEO Group Inc. (The)		27,878		983,257
Hatteras Financial Corp.		39,086		711,365
HCP Inc.c		179,222		7,437,713
Health Care REIT Inc.		112,922		7,322,992
Healthcare Realty Trust Inc.		37,860		909,019
Highwoods Properties Inc.c		35,556		1,372,462
Home Properties Inc.c		22,427		1,352,572
Hospitality Properties Trustc		55,302		1,624,773
Host Hotels & Resorts Inc.		295,625		5,483,844
Invesco Mortgage Capital Inc.		53,217		822,203
Kilroy Realty Corp.c		32,029		1,702,662
Kimco Realty Corp.		161,228		3,463,177
LaSalle Hotel Properties		37,962		1,178,720
Lexington Realty Trustc		71,084		831,683
Liberty Property Trust		56,347		2,095,545
Macerich Co. (The)		55,420		3,281,418
Mack-Cali Realty Corp.		34,924		718,037
Medical Properties Trust Inc.c		63,484		827,831
MFA Financial Inc.		142,924		1,059,067
Mid-America Apartment Communities Inc.c		29,454		1,955,746
National Retail Properties Inc.c		47,796		1,644,182
Omega Healthcare Investors Inc.c		46,293		1,538,779
Piedmont Office Realty Trust Inc. Class A		66,081		1,221,177
Plum Creek Timber Co. Inc.		64,281		2,918,357
Post Properties Inc.c		21,709		992,970
Potlatch Corp.		15,984		652,627
Prologis Inc.		196,352		7,844,262
Public Storage		56,895		9,499,758
Rayonier Inc.		49,740		2,338,775
Realty Income Corp.		75,954		3,163,484
Redwood Trust Inc.c		32,487		569,172
Regency Centers Corp.		36,398		1,880,321
Retail Properties of America Inc. Class A		71,864		1,028,374

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. FINANCIALS ETF

October 31, 2013

Security	Shares		Value
RLJ Lodging Trust		48,496	$	1,225,009
Ryman Hospitality Properties Inc.c		20,423		753,813
Senior Housing Properties Trustc		74,178		1,827,746
Simon Property Group Inc.		122,183		18,883,383
SL Green Realty Corp.		35,612		3,367,827
Sovran Self Storage Inc.		12,468		953,677
Spirit Realty Capital Inc.		138,788		1,451,722
Starwood Property Trust Inc.		73,829		1,896,667
Sunstone Hotel Investors Inc.		64,422		853,592
Tanger Factory Outlet Centers Inc.		37,241		1,297,849
Taubman Centers Inc.c		25,243		1,660,737
Two Harbors Investment Corp.		144,601		1,349,127
UDR Inc.		98,717		2,449,169
Ventas Inc.		115,290		7,521,520
Vornado Realty Trust		68,520		6,102,391
Washington Real Estate Investment Trustc		26,227		687,410
Weingarten Realty Investorsc		44,307		1,405,861
Weyerhaeuser Co.		230,023		6,992,699
WP Carey Inc.		22,067		1,469,883
				229,628,067
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.88%
Alexander & Baldwin Inc.a		17,018		629,666
Altisource Portfolio Solutions SAa,c		6,765		1,063,999
CBRE Group Inc. Class Aa		109,351		2,540,224
Forest City Enterprises Inc. Class Aa,c		62,278		1,261,752
Howard Hughes Corp. (The)a		12,331		1,443,344
Jones Lang LaSalle Inc.		17,568		1,672,474
Realogy Holdings Corp.a		57,417		2,362,135
St. Joe Co. (The)a,c		32,435		605,561
				11,579,155
THRIFTS & MORTGAGE FINANCE — 0.96%
Capitol Federal Financial Inc.		54,172		686,359
Hudson City Bancorp Inc.		188,020		1,688,420
MGIC Investment Corp.a		133,349		1,085,461
New York Community Bancorp Inc.c		173,458		2,811,754
Ocwen Financial Corp.a,c		45,918		2,581,969
People’s United Financial Inc.		126,641		1,827,430
Radian Group Inc.		68,254		994,461

Security	Shares		Value
Washington Federal Inc.		41,204	$	938,627
				12,614,481
TOTAL COMMON STOCKS
(Cost: $1,235,916,683)				1,312,071,661
SHORT-TERM INVESTMENTS — 3.07%
MONEY MARKET FUNDS — 3.07%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,d,e		37,197,891		37,197,891
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,d,e		2,161,828		2,161,828
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,d		1,010,254		1,010,254
				40,369,973
TOTAL SHORT-TERM INVESTMENTS
(Cost: $40,369,973)				40,369,973
TOTAL INVESTMENTS IN SECURITIES — 102.97%
(Cost: $1,276,286,656)				1,352,441,634
Other Assets, Less Liabilities — (2.97)%				(39,055,837	)
NET ASSETS — 100.00%			$	1,313,385,797

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  Affiliated issuer. See Note 2.

^c  All or a portion of this security represents a security on loan. See Note 5.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

28 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. INDUSTRIALS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.88%
AEROSPACE & DEFENSE — 19.90%
Alliant Techsystems Inc.		19,295	$	2,100,647
B/E Aerospace Inc.a,b		59,215		4,805,889
Boeing Co. (The)		416,684		54,377,262
Curtiss-Wright Corp.		28,389		1,413,204
DigitalGlobe Inc.a,b		40,979		1,303,952
Esterline Technologies Corp.a		18,918		1,516,467
Exelis Inc.		113,528		1,872,077
General Dynamics Corp.		199,564		17,288,229
HEICO Corp.		34,001		1,821,774
Hexcel Corp.a		60,380		2,554,678
Honeywell International Inc.		471,177		40,865,181
Huntington Ingalls Industries Inc.		29,938		2,142,064
L-3 Communications Holdings Inc.		53,868		5,411,041
Lockheed Martin Corp.		161,859		21,582,279
Moog Inc. Class Aa		27,229		1,626,388
Northrop Grumman Corp.		138,201		14,857,989
Precision Castparts Corp.		87,378		22,145,954
Raytheon Co.		193,635		15,949,715
Rockwell Collins Inc.		81,154		5,666,984
Spirit AeroSystems Holdings Inc. Class Aa		60,884		1,624,994
Teledyne Technologies Inc.a,b		22,561		2,003,868
Textron Inc.		168,701		4,856,902
TransDigm Group Inc.		29,709		4,319,986
Triumph Group Inc.		31,331		2,244,866
United Technologies Corp.		506,746		53,841,762
				288,194,152
AIR FREIGHT & LOGISTICS — 5.50%
C.H. Robinson Worldwide Inc.		95,803		5,723,271
Expeditors International of Washington Inc.		124,075		5,619,357
FedEx Corp.		178,405		23,371,055
Forward Air Corp.		18,515		749,487
Hub Group Inc. Class Aa		21,112		775,444
United Parcel Service Inc. Class B		433,732		42,609,832
UTi Worldwide Inc.		54,807		833,066
				79,681,512
BUILDING PRODUCTS — 1.22%
A.O. Smith Corp.		46,718		2,412,985
Fortune Brands Home & Security Inc.		99,615		4,291,414

Security	Shares		Value
Lennox International Inc.		27,675	$	2,160,310
Masco Corp.		214,184		4,525,708
Owens Corninga		66,412		2,386,183
Simpson Manufacturing Co. Inc.		24,689		875,225
USG Corp.a,b		37,735		1,030,543
				17,682,368
CHEMICALS — 0.91%
Sherwin-Williams Co. (The)		52,414		9,853,832
Valspar Corp. (The)		48,396		3,386,268
				13,240,100
COMMERCIAL SERVICES & SUPPLIES — 4.08%
ABM Industries Inc.		31,021		853,388
ADT Corp. (The)		120,254		5,215,416
Brink’s Co. (The)		29,178		916,189
Cintas Corp.		61,762		3,320,943
Clean Harbors Inc.a,b		33,240		2,052,570
Covanta Holding Corp.		78,381		1,345,802
Deluxe Corp.		30,331		1,428,287
Iron Mountain Inc.		102,041		2,708,168
Mine Safety Appliances Co.		19,095		919,615
R.R. Donnelley & Sons Co.		109,541		2,034,176
Republic Services Inc.		163,223		5,463,074
Stericycle Inc.a		51,622		5,998,476
Tetra Tech Inc.a,b		38,695		1,011,100
Tyco International Ltd.		277,614		10,146,792
United Stationers Inc.		23,973		1,065,360
Waste Connections Inc.		74,108		3,167,376
Waste Management Inc.		261,790		11,398,337
				59,045,069
CONSTRUCTION & ENGINEERING — 2.16%
AECOM Technology Corp.a		60,596		1,925,741
Chicago Bridge & Iron Co. NV		64,399		4,771,322
EMCOR Group Inc.		40,275		1,492,592
Fluor Corp.		97,933		7,268,587
Foster Wheeler AGa,b		60,133		1,622,990
Jacobs Engineering Group Inc.a		79,070		4,809,037
KBR Inc.		88,794		3,066,945
Quanta Services Inc.a		128,269		3,875,006
URS Corp.		44,982		2,438,924
				31,271,144
CONSTRUCTION MATERIALS — 0.68%
Eagle Materials Inc.		29,853		2,239,273
Martin Marietta Materials Inc.		27,741		2,721,115
Texas Industries Inc.a,b		12,964		696,167

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

October 31, 2013

Security	Shares		Value
Vulcan Materials Co.		78,002	$	4,177,007
				9,833,562
CONTAINERS & PACKAGING — 2.70%
AptarGroup Inc.		39,764		2,551,258
Avery Dennison Corp.		58,886		2,774,708
Ball Corp.		87,217		4,264,039
Bemis Co. Inc.		62,007		2,474,079
Crown Holdings Inc.a		84,536		3,685,770
Greif Inc. Class A		18,407		984,590
MeadWestvaco Corp.		106,557		3,713,511
Owens-Illinois Inc.a		98,614		3,134,939
Packaging Corp. of America		58,993		3,674,084
Rock-Tenn Co. Class A		43,285		4,631,928
Sealed Air Corp.		117,547		3,547,569
Silgan Holdings Inc.		26,293		1,185,026
Sonoco Products Co.		60,353		2,452,746
				39,074,247
DIVERSIFIED CONSUMER SERVICES — 0.08%
Outerwall Inc.a,b		16,889		1,097,447
				1,097,447
DIVERSIFIED FINANCIAL SERVICES — 0.05%
PHH Corp.a,b		32,295		776,695
				776,695
ELECTRICAL EQUIPMENT — 6.31%
Acuity Brands Inc.		25,792		2,592,354
AMETEK Inc.		146,744		7,018,766
Babcock & Wilcox Co. (The)		66,683		2,147,859
Brady Corp. Class A		28,116		820,706
Eaton Corp. PLC		284,531		20,076,507
Emerson Electric Co.		428,982		28,728,925
EnerSys Inc.		28,627		1,899,401
Generac Holdings Inc.		41,129		2,029,716
General Cable Corp.		30,069		990,172
Hubbell Inc. Class B		32,396		3,483,866
Regal Beloit Corp.		27,175		1,992,743
Rockwell Automation Inc.		83,276		9,194,503
Roper Industries Inc.		59,576		7,554,833
Sensata Technologies Holding NVa,b		76,955		2,895,817
				91,426,168
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.70%
Amphenol Corp. Class A		95,605		7,676,126
Anixter International Inc.a		16,042		1,371,431

Security	Shares		Value
Arrow Electronics Inc.a		60,158	$	2,888,787
Avnet Inc.		82,308		3,267,628
Belden Inc.		26,221		1,763,625
Benchmark Electronics Inc.a,b		33,028		750,726
Cognex Corp.		49,841		1,557,531
FEI Co.		25,164		2,241,609
FLIR Systems Inc.		85,610		2,438,173
IPG Photonics Corp.b		20,831		1,380,470
Itron Inc.a,b		23,578		1,006,073
Jabil Circuit Inc.		111,101		2,317,567
Littelfuse Inc.		13,518		1,149,436
Molex Inc.		82,458		3,182,879
National Instruments Corp.		58,676		1,704,538
TE Connectivity Ltd.		248,313		12,785,636
Trimble Navigation Ltd.a,b		154,055		4,401,351
Universal Display Corp.a,b		24,886		793,863
Vishay Intertechnology Inc.a,b		79,803		979,183
				53,656,632
INDUSTRIAL CONGLOMERATES — 16.40%
3M Co.		389,796		49,055,826
Carlisle Companies Inc.		38,420		2,792,366
Danaher Corp.		359,140		25,890,403
General Electric Co.		6,113,371		159,803,518
				237,542,113
INTERNET SOFTWARE & SERVICES — 1.05%
CoStar Group Inc.a,b		17,231		3,049,715
LinkedIn Corp. Class Aa		54,522		12,194,936
				15,244,651
IT SERVICES — 7.68%
Accenture PLC Class A		387,147		28,455,304
Alliance Data Systems Corp.a,b		29,293		6,944,199
Automatic Data Processing Inc.		289,884		21,732,603
Broadridge Financial Solutions Inc.		71,572		2,516,471
Convergys Corp.		62,620		1,236,119
CoreLogic Inc.a		57,659		1,918,315
Euronet Worldwide Inc.a		28,416		1,233,254
Fidelity National Information Services Inc.		175,432		8,552,310
Fiserv Inc.a		78,134		8,182,974
FleetCor Technologies Inc.a		43,709		5,041,833
Genpact Ltd.a		67,669		1,341,876
Global Payments Inc.		45,405		2,700,689
Jack Henry & Associates Inc.		51,252		2,798,872
Lender Processing Services Inc.		51,430		1,775,364

30 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

October 31, 2013

Security	Shares		Value
MAXIMUS Inc.		41,108	$	1,991,683
NeuStar Inc. Class Aa,b		28,463		1,307,021
Paychex Inc.		195,377		8,256,632
Total System Services Inc.		100,359		2,993,709
WEX Inc.a,b		23,416		2,185,884
				111,165,112
LIFE SCIENCES TOOLS & SERVICES — 1.18%
Agilent Technologies Inc.		198,644		10,083,169
Mettler-Toledo International Inc.a,b		18,010		4,456,755
PerkinElmer Inc.		67,476		2,566,787
				17,106,711
MACHINERY — 14.59%
Actuant Corp. Class A		44,207		1,660,415
AGCO Corp.		54,430		3,177,623
Caterpillar Inc.		381,959		31,840,102
CLARCOR Inc.		30,088		1,759,546
Colfax Corp.a		53,320		2,983,787
Crane Co.		29,405		1,867,218
Cummins Inc.		104,553		13,280,322
Deere & Co.		229,864		18,812,070
Donaldson Co. Inc.		81,124		3,213,322
Dover Corp.		102,494		9,407,924
Flowserve Corp.		84,506		5,870,632
Graco Inc.		36,954		2,855,066
Harsco Corp.		48,683		1,357,282
IDEX Corp.		49,205		3,402,526
Illinois Tool Works Inc.		247,398		19,492,488
Ingersoll-Rand PLC		162,528		10,975,516
ITT Corp.		54,423		2,162,226
Joy Global Inc.b		63,774		3,619,175
Kennametal Inc.		46,779		2,151,834
Lincoln Electric Holdings Inc.		49,410		3,421,148
Manitowoc Co. Inc. (The)		80,101		1,558,765
Mueller Industries Inc.		17,006		1,025,292
Navistar International Corp.a,b		40,459		1,462,997
Nordson Corp.		36,357		2,620,976
Oshkosh Corp.a		52,287		2,488,338
PACCAR Inc.		212,551		11,817,836
Pall Corp.		67,234		5,413,682
Parker Hannifin Corp.		89,583		10,456,128
Pentair Ltd. Registered		119,618		8,025,172
SPX Corp.		27,245		2,471,394
Terex Corp.a		67,057		2,343,642
Timken Co. (The)		47,882		2,528,648

Security	Shares		Value
Toro Co. (The)		34,303	$	2,021,819
Trinity Industries Inc.		47,230		2,391,255
Valmont Industries Inc.		16,133		2,266,687
Wabtec Corp.		57,781		3,766,743
Woodward Inc.		36,316		1,455,908
Xylem Inc.		111,172		3,835,434
				211,260,938
MARINE — 0.26%
Kirby Corp.a		34,058		3,013,793
Matson Inc.		25,871		700,845
				3,714,638
MULTI-UTILITIES — 0.23%
MDU Resources Group Inc.		113,303		3,374,163
				3,374,163
OFFICE ELECTRONICS — 0.10%
Zebra Technologies Corp. Class Aa		30,631		1,479,784
				1,479,784
OIL, GAS & CONSUMABLE FUELS — 0.18%
Teekay Corp.		22,907		994,851
World Fuel Services Corp.		43,882		1,674,098
				2,668,949
PAPER & FOREST PRODUCTS — 0.10%
Louisiana-Pacific Corp.a		84,619		1,439,369
				1,439,369
PROFESSIONAL SERVICES — 1.84%
Acacia Research Corp.		30,248		456,442
Advisory Board Co. (The)a,b		21,638		1,484,367
Corporate Executive Board Co. (The)		20,194		1,472,143
Equifax Inc.		72,924		4,715,995
FTI Consulting Inc.a,b		24,640		999,891
Manpowergroup Inc.		46,981		3,669,216
Robert Half International Inc.		83,559		3,219,528
Towers Watson & Co. Class A		38,713		4,444,640
Verisk Analytics Inc. Class Aa		90,068		6,171,459
				26,633,681
ROAD & RAIL — 6.62%
Con-way Inc.		34,083		1,404,220
CSX Corp.		611,738		15,941,892
Genesee & Wyoming Inc. Class Aa,b		25,659		2,561,795
J.B. Hunt Transport Services Inc.		54,807		4,112,169

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

October 31, 2013

Security	Shares		Value
Kansas City Southern Industries Inc.		66,208	$	8,045,596
Landstar System Inc.		27,484		1,519,590
Norfolk Southern Corp.		187,305		16,111,976
Old Dominion Freight Line Inc.a		41,947		1,967,314
Ryder System Inc.		31,533		2,075,817
Union Pacific Corp.		278,466		42,159,753
				95,900,122
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.05%
Veeco Instruments Inc.a,b		23,685		691,839
				691,839
TRADING COMPANIES & DISTRIBUTORS — 2.31%
Air Lease Corp.		46,055		1,354,017
Applied Industrial Technologies Inc.		25,472		1,205,080
Fastenal Co.b		164,025		8,168,445
GATX Corp.		27,902		1,438,348
MRC Global Inc.a,b		61,013		1,705,313
MSC Industrial Direct Co. Inc. Class A		29,020		2,216,258
United Rentals Inc.a,b		56,013		3,617,880
W.W. Grainger Inc.		37,144		9,990,622
Watsco Inc.		16,186		1,542,364
WESCO International Inc.a		26,622		2,275,116
				33,513,443
TOTAL COMMON STOCKS (Cost: $1,278,589,219)				1,446,714,609
SHORT-TERM INVESTMENTS — 3.17%
MONEY MARKET FUNDS — 3.17%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		40,722,278		40,722,278
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		2,366,655		2,366,655
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		2,882,351		2,882,351
				45,971,284
TOTAL SHORT-TERM INVESTMENTS
(Cost: $45,971,284)				45,971,284

	Value
TOTAL INVESTMENTS IN SECURITIES — 103.05%
(Cost: $1,324,560,503)	$	1,492,685,893
Other Assets, Less Liabilities — (3.05)%		(44,233,821	)
NET ASSETS — 100.00%	$	1,448,452,072

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

32 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. FINANCIAL SERVICES ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.78%
CAPITAL MARKETS — 20.39%
Affiliated Managers Group Inc.a,b		16,122	$	3,183,128
Ameriprise Financial Inc.		60,347		6,067,288
Bank of New York Mellon Corp. (The)		350,826		11,156,267
BlackRock Inc.c		38,402		11,551,705
Charles Schwab Corp. (The)		352,679		7,988,179
E*TRADE Financial Corp.a		87,788		1,484,495
Eaton Vance Corp. NVS		37,128		1,552,322
Federated Investors Inc. Class B		28,835		782,005
Financial Engines Inc.		14,992		837,603
Franklin Resources Inc.		123,985		6,677,832
Goldman Sachs Group Inc. (The)		127,345		20,484,717
Greenhill & Co. Inc.		7,993		410,041
Invesco Ltd.		135,078		4,558,882
Janus Capital Group Inc.		45,901		453,043
Legg Mason Inc.		33,198		1,277,127
LPL Financial Holdings Inc.		24,441		995,726
Morgan Stanley		424,023		12,182,181
Northern Trust Corp.		68,855		3,884,799
Raymond James Financial Inc.		37,577		1,715,390
SEI Investments Co.		44,220		1,467,662
State Street Corp.		135,998		9,529,380
Stifel Financial Corp.a,b		18,097		741,072
T. Rowe Price Group Inc.		79,343		6,141,942
TD Ameritrade Holding Corp.		72,290		1,970,625
Waddell & Reed Financial Inc. Class A		26,197		1,617,665
				118,711,076
COMMERCIAL BANKS — 28.64%
Associated Banc-Corp		50,723		824,756
BancorpSouth Inc.		25,641		566,666
Bank of Hawaii Corp.		13,604		788,760
BB&T Corp.		214,663		7,292,102
BOK Financial Corp.		6,322		387,096
CapitalSource Inc.		59,948		784,120
Cathay General Bancorp		22,495		554,052
CIT Group Inc.a		61,435		2,958,710
City National Corp.		14,459		1,042,638
Comerica Inc.		56,392		2,441,774
Commerce Bancshares Inc.		23,560		1,083,996
Cullen/Frost Bankers Inc.		16,041		1,135,542
East West Bancorp Inc.		42,079		1,417,641

Security	Shares		Value
F.N.B. Corp.		46,956	$	587,420
Fifth Third Bancorp		270,557		5,148,700
First Financial Bankshares Inc.		9,280		570,813
First Horizon National Corp.		73,523		783,020
First Niagara Financial Group Inc.		108,374		1,195,365
First Republic Bank		37,682		1,924,420
FirstMerit Corp.		50,444		1,132,972
Fulton Financial Corp.		59,446		725,836
Glacier Bancorp Inc.b		22,487		621,316
Hancock Holding Co.		25,089		822,417
Huntington Bancshares Inc.		252,928		2,225,766
IBERIABANK Corp.		9,116		532,648
International Bancshares Corp.		17,443		398,573
KeyCorp		278,077		3,484,305
M&T Bank Corp.		39,662		4,463,165
MB Financial Inc.		16,677		495,307
National Penn Bancshares Inc.		35,624		369,421
Old National Bancorp		30,753		447,149
PNC Financial Services Group Inc. (The)c		162,078		11,917,595
Popular Inc.a,b		31,546		796,536
PrivateBancorp Inc.		19,932		485,544
Prosperity Bancshares Inc.		17,114		1,068,769
Regions Financial Corp.		425,829		4,100,733
Signature Banka,b		14,470		1,473,335
SunTrust Banks Inc.		164,387		5,529,979
Susquehanna Bancshares Inc.		57,187		673,949
SVB Financial Groupa,b		13,916		1,332,874
Synovus Financial Corp.		299,649		973,859
TCF Financial Corp.		50,150		761,277
Texas Capital Bancshares Inc.a,b		12,416		646,253
Trustmark Corp.		20,468		555,911
U.S. Bancorp		560,799		20,951,451
UMB Financial Corp.		11,280		664,618
Umpqua Holdings Corp.		34,379		562,784
United Bankshares Inc.b		6,925		204,841
Valley National Bancorpb		60,959		594,350
Webster Financial Corp.		27,497		766,891
Wells Fargo & Co.		1,473,124		62,887,664
Westamerica Bancorpb		8,255		424,967
Wintrust Financial Corp.		12,093		526,166
Zions Bancorp		56,369		1,599,189
				166,706,001
CONSUMER FINANCE — 8.19%
American Express Co.		282,895		23,140,811

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. FINANCIAL SERVICES ETF

October 31, 2013

Security	Shares		Value
Capital One Financial Corp.		178,490	$	12,256,908
Cash America International Inc.		8,603		339,388
Discover Financial Services		147,538		7,654,272
Portfolio Recovery Associates Inc.a,b		15,533		923,437
SLM Corp.		133,082		3,376,290
				47,691,106
DIVERSIFIED FINANCIAL SERVICES — 30.72%
Bank of America Corp.		3,275,367		45,724,123
CBOE Holdings Inc.		26,804		1,299,994
Citigroup Inc.		927,144		45,226,084
CME Group Inc.		95,833		7,111,767
IntercontinentalExchange Inc.a,b		22,225		4,283,424
J.P. Morgan Chase & Co.		1,147,615		59,148,077
McGraw Hill Financial Inc.		83,942		5,849,079
Moody’s Corp.		59,170		4,180,952
MSCI Inc. Class Aa,b		36,929		1,505,596
NASDAQ OMX Group Inc. (The)		35,298		1,250,608
NYSE Euronext Inc.		74,177		3,265,272
				178,844,976
INSURANCE — 0.32%
Fidelity National Financial Inc. Class A		66,008		1,858,125
				1,858,125
IT SERVICES — 9.70%
MasterCard Inc. Class A		31,630		22,681,873
Visa Inc. Class A		157,387		30,953,301
Western Union Co.		168,399		2,866,151
				56,501,325
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.14%
Altisource Portfolio Solutions SAa,b		5,178		814,396
				814,396
THRIFTS & MORTGAGE FINANCE — 1.68%
Capitol Federal Financial Inc.		41,839		530,100
Hudson City Bancorp Inc.		145,441		1,306,060
MGIC Investment Corp.a,b		102,893		837,549
New York Community Bancorp Inc.		134,699		2,183,471
Ocwen Financial Corp.a,b		35,654		2,004,824
People’s United Financial Inc.		98,122		1,415,901
Radian Group Inc.		52,653		767,154
Washington Federal Inc.		31,743		723,106
				9,768,165
TOTAL COMMON STOCKS
(Cost: $549,726,044)				580,895,170

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.92%
MONEY MARKET FUNDS — 1.92%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		9,436,850	$	9,436,850
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		548,441		548,441
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		1,181,233		1,181,233
				11,166,524
TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,166,524)				11,166,524
TOTAL INVESTMENTS IN SECURITIES — 101.70%
(Cost: $560,892,568)				592,061,694
Other Assets, Less Liabilities — (1.70)%				(9,903,756	)
NET ASSETS — 100.00%			$	582,157,938

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

34 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.88%
DIVERSIFIED REAL ESTATE ACTIVITIES — 0.51%
Alexander & Baldwin Inc.a		292,685	$	10,829,345
St. Joe Co. (The)a,b		546,871		10,210,082
				21,039,427
DIVERSIFIED REITs — 6.51%
American Realty Capital Properties Inc.b		1,265,104		16,787,930
Duke Realty Corp.b		2,224,212		36,855,193
Lexington Realty Trustb		1,088,322		12,733,367
Liberty Property Trust		975,497		36,278,734
Spirit Realty Capital Inc.		2,402,840		25,133,706
Vornado Realty Trust		1,185,079		105,543,136
Washington Real Estate Investment Trustb		457,915		12,001,952
WP Carey Inc.		381,862		25,435,828
				270,769,846
INDUSTRIAL REITs — 3.98%
DCT Industrial Trust Inc.		2,151,357		16,673,017
EastGroup Properties Inc.b		207,678		13,220,781
Prologis Inc.		3,396,319		135,682,944
				165,576,742
MORTGAGE REITs — 6.91%
American Capital Agency Corp.		2,697,279		58,584,900
Annaly Capital Management Inc.b		6,442,073		75,952,041
ARMOUR Residential REIT Inc.		2,564,956		10,567,619
Chimera Investment Corp.		7,018,803		21,266,973
CYS Investments Inc.		1,187,298		10,080,160
Hatteras Financial Corp.		675,220		12,289,004
Invesco Mortgage Capital Inc.		923,127		14,262,312
MFA Financial Inc.		2,478,583		18,366,300
Redwood Trust Inc.b		565,612		9,909,522
Starwood Property Trust Inc.		1,276,538		32,794,261
Two Harbors Investment Corp.		2,496,694		23,294,155
				287,367,247
OFFICE REITs — 10.62%
Alexandria Real Estate Equities Inc.b		488,055		32,104,258
BioMed Realty Trust Inc.		1,313,717		26,169,243
Boston Properties Inc.		1,038,287		107,462,704
Brandywine Realty Trustb		1,078,429		15,346,045
CommonWealth REIT		760,198		18,526,025

Security	Shares		Value
Corporate Office Properties Trust		600,111	$	14,762,731
Digital Realty Trust Inc.b		874,683		41,687,392
Douglas Emmett Inc.b		885,382		22,072,573
DuPont Fabros Technology Inc.b		443,491		11,020,751
Franklin Street Properties Corp.		600,665		7,928,778
Highwoods Properties Inc.b		614,820		23,732,052
Kilroy Realty Corp.b		553,949		29,447,929
Mack-Cali Realty Corp.		605,240		12,443,734
Piedmont Office Realty Trust Inc. Class Ab		1,147,313		21,202,344
SL Green Realty Corp.b		610,872		57,770,165
				441,676,724
REAL ESTATE DEVELOPMENT — 0.61%
Howard Hughes Corp. (The)a		216,637		25,357,361
				25,357,361
REAL ESTATE OPERATING COMPANIES — 0.53%
Forest City Enterprises Inc. Class Aa		1,096,134		22,207,675
				22,207,675
REAL ESTATE SERVICES — 2.74%
CBRE Group Inc. Class Aa		1,895,001		44,020,873
Jones Lang LaSalle Inc.		303,250		28,869,400
Realogy Holdings Corp.a		998,623		41,083,350
				113,973,623
RESIDENTIAL REITs — 12.53%
American Campus Communities Inc.		715,112		24,714,271
Apartment Investment and Management Co. Class A		997,492		27,909,826
AvalonBay Communities Inc.		828,795		103,640,815
BRE Properties Inc. Class A		527,389		28,800,713
Camden Property Trust		582,571		37,401,058
Equity Lifestyle Properties, Inc.		541,099		20,556,351
Equity Residential		2,282,756		119,525,104
Essex Property Trust Inc.		259,158		41,724,438
Home Properties Inc.		388,243		23,414,936
Mid-America Apartment Communities Inc.b		508,685		33,776,684
Post Properties Inc.		375,738		17,186,256
UDR Inc.		1,708,369		42,384,635
				521,035,087

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
RETAIL REITs — 21.00%
CBL & Associates Properties Inc.		1,160,094	$	22,981,462
Cole Real Estate Investment Inc.		2,847,604		40,435,977
DDR Corp.b		1,772,671		30,046,774
Federal Realty Investment Trust		447,941		46,406,688
General Growth Properties Inc.		3,774,041		80,122,890
Kimco Realty Corp.		2,794,161		60,018,578
Macerich Co. (The)		958,450		56,749,825
National Retail Properties Inc.b		826,821		28,442,642
Realty Income Corp.b		1,327,277		55,281,087
Regency Centers Corp.		631,618		32,629,386
Retail Properties of America Inc. Class Ab		1,254,955		17,958,406
Simon Property Group Inc.		2,112,088		326,423,200
Tanger Factory Outlet Centers Inc.		644,857		22,473,267
Taubman Centers Inc.		435,346		28,641,413
Weingarten Realty Investorsb		768,154		24,373,526
				872,985,121
SPECIALIZED REITs — 33.94%
American Tower Corp.		2,688,750		213,352,312
Corrections Corp. of America		789,328		29,205,136
CubeSmartb		859,608		15,705,038
DiamondRock Hospitality Co.b		1,337,907		15,238,761
EPR Properties		345,635		17,755,270
Extra Space Storage Inc.		723,110		33,255,829
GEO Group Inc. (The)		487,160		17,182,133
HCP Inc.		3,098,097		128,571,026
Health Care REIT Inc.		1,951,318		126,542,972
Healthcare Realty Trust Inc.		656,009		15,750,776
Hospitality Properties Trustb		953,394		28,010,716
Host Hotels & Resorts Inc.		5,113,383		94,853,255
LaSalle Hotel Properties		657,767		20,423,665
Medical Properties Trust Inc.		1,096,358		14,296,508
Omega Healthcare Investors Inc.b		799,478		26,574,649
Plum Creek Timber Co. Inc.b		1,110,839		50,432,091
Potlatch Corp.		278,036		11,352,210
Public Storage		983,125		164,152,381
Rayonier Inc.b		858,913		40,386,089
RLJ Lodging Trust		839,615		21,208,675
Ryman Hospitality Properties Inc.		355,335		13,115,415
Senior Housing Properties Trustb		1,282,578		31,602,722

Security	Shares		Value
Sovran Self Storage Inc.		215,074	$	16,451,010
Sunstone Hotel Investors Inc.		1,114,959		14,773,207
Ventas Inc.		1,995,331		130,175,394
Weyerhaeuser Co.		3,981,135		121,026,504
				1,411,393,744
TOTAL COMMON STOCKS
(Cost: $4,474,428,000)				4,153,382,597
SHORT-TERM INVESTMENTS — 7.28%
MONEY MARKET FUNDS — 7.28%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		285,935,295		285,935,295
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		16,617,692		16,617,692
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		68,199		68,199
				302,621,186
TOTAL SHORT-TERM INVESTMENTS
(Cost: $302,621,186)				302,621,186
TOTAL INVESTMENTS IN SECURITIES — 107.16%
(Cost: $4,777,049,186)				4,456,003,783
Other Assets, Less Liabilities — (7.16)%				(297,787,334	)
NET ASSETS — 100.00%			$	4,158,216,449

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

36 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.88%
AEROSPACE & DEFENSE — 0.05%
Spirit AeroSystems Holdings Inc. Class Aa		4,636	$	123,735
				123,735
AIR FREIGHT & LOGISTICS — 1.37%
C.H. Robinson Worldwide Inc.		6,176		368,954
Expeditors International of Washington Inc.		7,929		359,105
United Parcel Service Inc. Class B		27,870		2,737,949
				3,466,008
AUTO COMPONENTS — 0.79%
Autoliv Inc.		3,668		327,296
BorgWarner Inc.		4,435		457,382
Fuel Systems Solutions Inc.a		591		10,614
Johnson Controls Inc.		26,343		1,215,729
				2,011,021
AUTOMOBILES — 0.42%
Harley-Davidson Inc.		8,619		551,961
Tesla Motors Inc.a,b		3,194		510,848
				1,062,809
BEVERAGES — 2.14%
Coca-Cola Enterprises Inc.		10,025		418,343
PepsiCo Inc.		59,473		5,001,085
				5,419,428
BIOTECHNOLOGY — 4.12%
Amgen Inc.		28,843		3,345,788
Biogen Idec Inc.a		9,129		2,229,211
Cepheid Inc.a		2,602		105,953
Gilead Sciences Inc.a		58,663		4,164,486
Vertex Pharmaceuticals Inc.a		8,514		607,389
				10,452,827
BUILDING PRODUCTS — 0.27%
A.O. Smith Corp.		3,060		158,049
Apogee Enterprises Inc.		1,120		35,034
Masco Corp.		13,770		290,960
Owens Corninga		4,336		155,792
Simpson Manufacturing Co. Inc.		1,586		56,224
				696,059
CAPITAL MARKETS — 3.28%
Bank of New York Mellon Corp. (The)		44,636		1,419,425
BlackRock Inc.c		5,190		1,561,204

Security	Shares		Value
Charles Schwab Corp. (The)		44,302	$	1,003,440
Franklin Resources Inc.		15,944		858,744
Invesco Ltd.		17,109		577,429
Legg Mason Inc.		4,318		166,113
Northern Trust Corp.		8,740		493,111
State Street Corp.		17,539		1,228,957
T. Rowe Price Group Inc.		9,973		772,010
TD Ameritrade Holding Corp.		8,442		230,129
				8,310,562
CHEMICALS — 2.48%
Air Products and Chemicals Inc.		8,012		873,388
Albemarle Corp.		3,366		222,795
Eastman Chemical Co.		5,970		470,376
Ecolab Inc.		10,245		1,085,970
H.B. Fuller Co.		1,918		91,815
International Flavors & Fragrances Inc.		3,134		259,025
Minerals Technologies Inc.		1,338		75,771
Mosaic Co. (The)		11,421		523,653
Praxair Inc.		11,374		1,418,451
Sherwin-Williams Co. (The)		3,372		633,936
Sigma-Aldrich Corp.		4,620		399,307
Valspar Corp. (The)		3,243		226,913
				6,281,400
COMMERCIAL BANKS — 3.02%
Bank of Hawaii Corp.		1,708		99,030
BB&T Corp.		26,985		916,680
Cathay General Bancorp		2,850		70,195
CIT Group Inc.a		7,372		355,036
Comerica Inc.		7,199		311,717
Heartland Financial USA Inc.		517		13,695
International Bancshares Corp.		2,101		48,008
KeyCorp		35,398		443,537
M&T Bank Corp.		4,472		503,234
Old National Bancorp		3,844		55,892
PNC Financial Services Group Inc. (The)c		20,361		1,497,144
Popular Inc.a		3,999		100,975
Regions Financial Corp.		54,352		523,410
U.S. Bancorp		71,134		2,657,566
Umpqua Holdings Corp.		4,259		69,720
				7,665,839
COMMERCIAL SERVICES & SUPPLIES — 0.29%
Deluxe Corp.		1,977		93,097
Herman Miller Inc.		2,230		67,658

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
HNI Corp.		1,764	$	68,531
Interface Inc.		2,542		51,475
Iron Mountain Inc.		5,519		146,474
Knoll Inc.		1,896		31,132
R.R. Donnelley & Sons Co.		6,996		129,916
Steelcase Inc. Class A		3,417		56,005
Team Inc.a,b		750		27,968
Tetra Tech Inc.a,b		2,527		66,031
				738,287
COMMUNICATIONS EQUIPMENT — 3.94%
Cisco Systems Inc.		205,536		4,624,560
Motorola Solutions Inc.		9,402		587,813
Plantronics Inc.		1,670		71,710
Polycom Inc.a		6,722		69,909
QUALCOMM Inc.		66,450		4,616,281
Tellabs Inc.		12,727		31,054
				10,001,327
COMPUTERS & PERIPHERALS — 1.77%
EMC Corp.		80,794		1,944,711
Hewlett-Packard Co.		74,763		1,821,974
Lexmark International Inc. Class A		2,407		85,569
Seagate Technology PLC		12,410		604,119
Silicon Graphics International Corp.a,b		1,119		14,290
Super Micro Computer Inc.a		1,237		17,219
				4,487,882
CONSTRUCTION & ENGINEERING — 0.15%
EMCOR Group Inc.		2,607		96,616
Granite Construction Inc.		1,444		46,713
Quanta Services Inc.a		8,059		243,462
				386,791
CONSUMER FINANCE — 1.61%
American Express Co.		38,027		3,110,608
Discover Financial Services		18,860		978,457
				4,089,065
CONTAINERS & PACKAGING — 0.60%
Avery Dennison Corp.		3,816		179,810
Ball Corp.		5,414		264,690
Bemis Co. Inc.		3,975		158,602
MeadWestvaco Corp.		6,814		237,468
Rock-Tenn Co. Class A		2,759		295,241
Sealed Air Corp.		7,189		216,964
Sonoco Products Co.		3,903		158,618
				1,511,393

Security	Shares		Value
DISTRIBUTORS — 0.38%
Genuine Parts Co.		5,959	$	469,748
LKQ Corp.a		11,464		378,656
Pool Corp.		1,807		98,265
Weyco Group Inc.		214		6,148
				952,817
DIVERSIFIED CONSUMER SERVICES — 0.03%
DeVry Inc.		2,166		77,759
				77,759
DIVERSIFIED FINANCIAL SERVICES — 0.75%
CME Group Inc.		12,198		905,214
IntercontinentalExchange Inc.a,b		2,798		539,259
NYSE Euronext Inc.		9,357		411,895
PHH Corp.a		2,067		49,711
				1,906,079
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.54%
CenturyLink Inc.		23,422		793,069
Cincinnati Bell Inc.a		7,492		21,427
Frontier Communications Corp.b		38,467		169,640
Level 3 Communications Inc.a,b		5,962		182,139
Windstream Holdings Inc.		22,764		194,632
				1,360,907
ELECTRIC UTILITIES — 0.42%
Cleco Corp.		2,320		107,509
ITC Holdings Corp.		2,015		202,689
MGE Energy Inc.		872		49,102
Northeast Utilities		12,082		518,197
Pepco Holdings Inc.		9,536		183,854
				1,061,351
ELECTRICAL EQUIPMENT — 0.28%
Brady Corp. Class A		1,817		53,038
General Cable Corp.		1,897		62,468
Rockwell Automation Inc.		5,377		593,675
				709,181
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.52%
Corning Inc.		56,728		969,482
Flextronics International Ltd.a		23,998		189,344
Itron Inc.a		1,499		63,962
Molex Inc.		2,550		98,430
				1,321,218
ENERGY EQUIPMENT & SERVICES — 1.26%
Baker Hughes Inc.		16,991		987,007
FMC Technologies Inc.a		9,134		461,724

38 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
Geospace Technologies Corp.a		481	$	46,859
National Oilwell Varco Inc.		16,432		1,333,950
Noble Corp.		9,760		367,952
				3,197,492
FOOD & STAPLES RETAILING — 1.59%
Costco Wholesale Corp.		16,782		1,980,276
Safeway Inc.		9,286		324,081
Sysco Corp.		22,823		738,096
United Natural Foods Inc.a		1,906		136,184
Whole Foods Market Inc.		13,542		854,906
				4,033,543
FOOD PRODUCTS — 3.00%
Bunge Ltd.		5,644		463,542
Campbell Soup Co.		7,833		333,451
Darling International Inc.a		4,576		106,484
General Mills Inc.		24,792		1,250,013
Green Mountain Coffee Roasters Inc.a,b		4,887		306,952
Hain Celestial Group Inc.a,b		1,541		128,257
Hillshire Brands Co.		4,751		155,975
J.M. Smucker Co. (The)		4,125		458,741
Kellogg Co.		9,902		626,302
Kraft Foods Group Inc.		22,862		1,243,236
McCormick & Co. Inc. NVS		4,609		318,712
Mondelez International Inc. Class A		65,196		2,193,193
Tootsie Roll Industries Inc.b		777		24,864
				7,609,722
GAS UTILITIES — 0.60%
AGL Resources Inc.		4,545		217,524
National Fuel Gas Co.		2,735		195,689
New Jersey Resources Corp.		1,595		73,418
Northwest Natural Gas Co.		1,012		43,951
ONEOK Inc.		7,939		448,554
Piedmont Natural Gas Co.		2,931		100,064
Questar Corp.		6,758		159,894
UGI Corp.		4,367		180,663
WGL Holdings Inc.		1,973		88,805
				1,508,562
HEALTH CARE EQUIPMENT & SUPPLIES — 1.86%
Becton, Dickinson and Co.		7,470		785,321
Edwards Lifesciences Corp.a		4,356		283,968
Hologic Inc.a,b		10,354		231,826
IDEXX Laboratories Inc.a,b		2,073		223,594
Invacare Corp.		1,156		24,819
Medtronic Inc.		39,074		2,242,847

Security	Shares		Value
St. Jude Medical Inc.		10,907	$	625,953
Varian Medical Systems Inc.a		4,183		303,602
				4,721,930
HEALTH CARE PROVIDERS & SERVICES — 1.58%
Cigna Corp.		10,973		844,701
Emeritus Corp.a		1,549		29,679
Health Management Associates Inc. Class Aa		9,960		127,687
Henry Schein Inc.a		3,356		377,315
Humana Inc.		6,057		558,153
Laboratory Corp. of America Holdingsa		3,571		360,314
Molina Healthcare Inc.a		1,107		35,025
MWI Veterinary Supply Inc.a,b		464		73,609
Patterson Companies Inc.		3,284		139,603
Quest Diagnostics Inc.		6,070		363,654
Select Medical Holdings Corp.		1,662		14,094
Team Health Holdings Inc.a,b		2,642		114,768
WellPoint Inc.		11,551		979,525
				4,018,127
HEALTH CARE TECHNOLOGY — 0.26%
Cerner Corp.a,b		11,905		667,037
				667,037
HOTELS, RESTAURANTS & LEISURE — 2.84%
Choice Hotels International Inc.		1,230		57,306
Darden Restaurants Inc.		4,973		256,259
Jack in the Box Inc.a,b		1,609		65,454
Marriott International Inc. Class A		9,461		426,502
McDonald’s Corp.		38,557		3,721,521
Royal Caribbean Cruises Ltd.		5,924		249,045
Starbucks Corp.		28,794		2,333,754
Vail Resorts Inc.		1,368		96,375
				7,206,216
HOUSEHOLD DURABLES — 0.25%
Blyth Inc.b		399		5,510
CSS Industries Inc.		345		8,932
Ethan Allen Interiors Inc.		1,025		27,306
La-Z-Boy Inc.		1,985		45,814
Meritage Homes Corp.a		1,339		60,777
Mohawk Industries Inc.a		2,363		312,909
Tupperware Brands Corp.		2,026		181,631
				642,879
HOUSEHOLD PRODUCTS — 5.10%
Clorox Co. (The)		5,072		457,444
Colgate-Palmolive Co.		35,974		2,328,597

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
Kimberly-Clark Corp.		14,791	$	1,597,428
Procter & Gamble Co. (The)		105,407		8,511,615
WD-40 Co.		579		41,972
				12,937,056
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.01%
Ormat Technologies Inc.b		632		16,476
				16,476
INDUSTRIAL CONGLOMERATES — 1.25%
3M Co.		25,217		3,173,560
				3,173,560
INSURANCE — 3.08%
ACE Ltd.		13,082		1,248,546
Aflac Inc.		17,930		1,165,091
Chubb Corp. (The)		9,932		914,539
Hartford Financial Services Group Inc. (The)		16,665		561,610
Marsh & McLennan Companies Inc.		21,169		969,540
PartnerRe Ltd.		1,975		197,915
Principal Financial Group Inc.		11,284		535,539
Progressive Corp. (The)		22,007		571,522
StanCorp Financial Group Inc.		1,695		99,835
Travelers Companies Inc. (The)		14,476		1,249,279
Willis Group Holdings PLC		6,368		287,006
				7,800,422
INTERNET & CATALOG RETAIL — 0.47%
Blue Nile Inc.a,b		480		19,714
HSN Inc.		1,431		74,984
Netflix Inc.a		1,943		626,579
NutriSystem Inc.		1,057		19,872
Shutterfly Inc.a,b		1,458		71,646
TripAdvisor Inc.a		4,516		373,518
Vitacost.com Inc.a,b		849		6,715
				1,193,028
INTERNET SOFTWARE & SERVICES — 5.66%
eBay Inc.a		44,920		2,367,733
Google Inc. Class Aa		10,427		10,745,858
Yahoo! Inc.a		37,472		1,233,953
				14,347,544
IT SERVICES — 3.56%
Automatic Data Processing Inc.		18,661		1,399,015
Convergys Corp.		4,053		80,006
International Business Machines Corp.		40,511		7,259,976

Security	Shares		Value
Teradata Corp.a		6,305	$	277,862
				9,016,859
LEISURE EQUIPMENT & PRODUCTS — 0.37%
Callaway Golf Co.		2,732		23,031
Mattel Inc.		13,283		589,367
Polaris Industries Inc.		2,510		328,684
				941,082
LIFE SCIENCES TOOLS & SERVICES — 1.39%
Affymetrix Inc.a,b		2,609		18,446
Agilent Technologies Inc.		13,247		672,418
Illumina Inc.a,b		4,783		447,258
Life Technologies Corp.a		6,633		499,531
PAREXEL International Corp.a,b		2,177		99,511
TECHNE Corp.		1,335		116,666
Thermo Fisher Scientific Inc.		13,804		1,349,755
Waters Corp.a		3,296		332,632
				3,536,217
MACHINERY — 2.99%
CLARCOR Inc.		1,894		110,761
Cummins Inc.		6,932		880,503
Deere & Co.		14,177		1,160,246
Dover Corp.		6,608		606,548
Graco Inc.		2,352		181,716
Illinois Tool Works Inc.		16,456		1,296,568
Ingersoll-Rand PLC		11,494		776,190
Kadant Inc.		448		16,038
Lincoln Electric Holdings Inc.		3,038		210,351
Middleby Corp. (The)a		725		165,046
Nordson Corp.		2,212		159,463
Pall Corp.		4,291		345,511
Pentair Ltd. Registered		7,857		527,126
Snap-on Inc.		2,244		233,533
Tennant Co.		672		40,784
Timken Co. (The)		3,148		166,246
WABCO Holdings Inc.a		2,418		207,174
Wabtec Corp.		3,710		241,855
Xylem Inc.		7,093		244,709
				7,570,368
MEDIA — 2.49%
Cablevision NY Group Class A		7,355		114,370
Discovery Communications Inc. Series Aa		5,622		499,908
Discovery Communications Inc. Series C NVSa,b		3,558		294,282

40 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
DreamWorks Animation SKG Inc. Class Aa,b		2,642	$	90,462
John Wiley & Sons Inc. Class A		1,831		92,081
Liberty Global PLC Series Aa		7,712		604,389
Liberty Global PLC Series C NVSa		6,065		454,026
New York Times Co. (The) Class Ab		5,195		71,847
Scholastic Corp.		1,067		30,612
Scripps Networks Interactive Inc. Class A		3,273		263,477
Time Warner Cable Inc.		11,190		1,344,479
Time Warner Inc.		35,850		2,464,329
				6,324,262
METALS & MINING — 0.48%
Alcoa Inc.		41,024		380,293
Compass Minerals International Inc.		1,268		94,428
Nucor Corp.		12,221		632,681
Schnitzer Steel Industries Inc. Class A		986		28,633
Worthington Industries Inc.		2,069		83,877
				1,219,912
MULTI-UTILITIES — 0.74%
Avista Corp.		2,275		63,222
CenterPoint Energy Inc.		15,666		385,383
Consolidated Edison Inc.		11,276		656,489
Integrys Energy Group Inc.		3,057		179,385
MDU Resources Group Inc.		6,906		205,661
NiSource Inc.		12,004		378,366
				1,868,506
MULTILINE RETAIL — 0.33%
Kohl’s Corp.		8,118		461,102
Nordstrom Inc.		6,035		364,937
				826,039
OFFICE ELECTRONICS — 0.18%
Xerox Corp.		44,761		444,924
				444,924
OIL, GAS & CONSUMABLE FUELS — 4.40%
Clean Energy Fuels Corp.a,b		2,529		28,805
Denbury Resources Inc.a		14,343		272,374
Devon Energy Corp.		14,832		937,679
Energen Corp.		2,781		217,808
EOG Resources Inc.		10,463		1,866,599
EQT Corp.		5,790		495,682
Hess Corp.		11,882		964,818
Marathon Petroleum Corp.		12,490		895,033

Security	Shares		Value
Newfield Exploration Co.a		5,225	$	159,101
Noble Energy Inc.		13,746		1,029,988
Phillips 66		22,624		1,457,664
Pioneer Natural Resources Co.		5,252		1,075,505
QEP Resources Inc.		6,881		227,486
Quicksilver Resources Inc.a,b		4,034		8,633
Southwestern Energy Co.a		13,518		503,140
Spectra Energy Corp.		25,735		915,394
Ultra Petroleum Corp.a,b		5,831		107,057
				11,162,766
PAPER & FOREST PRODUCTS — 0.05%
Domtar Corp.		1,329		112,579
Wausau Paper Corp.		1,508		17,644
				130,223
PERSONAL PRODUCTS — 0.47%
Avon Products Inc.		16,667		291,673
Estee Lauder Companies Inc. (The) Class A		9,187		651,910
Nu Skin Enterprises Inc. Class A		2,022		236,432
				1,180,015
PHARMACEUTICALS — 7.51%
Bristol-Myers Squibb Co.		63,170		3,317,688
Endo Health Solutions Inc.a,b		4,306		188,301
Hospira Inc.a		6,359		257,667
Johnson & Johnson		108,027		10,004,381
Merck & Co. Inc.		116,130		5,236,302
VIVUS Inc.a,b		3,647		34,245
				19,038,584
PROFESSIONAL SERVICES — 0.42%
Corporate Executive Board Co. (The)		1,303		94,989
Dun & Bradstreet Corp. (The)		1,530		166,449
ICF International Inc.a,b		772		26,727
IHS Inc. Class Aa,b		2,283		248,961
Kelly Services Inc. Class A		1,133		23,634
Manpowergroup Inc.		2,962		231,332
Robert Half International Inc.		5,349		206,097
RPX Corp.a		1,074		19,182
TrueBlue Inc.a		1,463		36,136
				1,053,507
REAL ESTATE INVESTMENT TRUSTS (REITs) — 3.26%
American Tower Corp.		15,209		1,206,834
AvalonBay Communities Inc.		4,726		590,986
Boston Properties Inc.		5,842		604,647

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
Corporate Office Properties Trust		3,294	$	81,032
Digital Realty Trust Inc.b		4,925		234,726
Duke Realty Corp.		12,388		205,269
Equity Residential		13,164		689,267
Federal Realty Investment Trust		2,509		259,932
HCP Inc.b		17,478		725,337
Host Hotels & Resorts Inc.		28,684		532,088
Liberty Property Trust		5,471		203,467
Macerich Co. (The)		5,298		313,695
Plum Creek Timber Co. Inc.		6,733		305,678
Potlatch Corp.		1,538		62,797
Prologis Inc.		19,160		765,442
UDR Inc.		9,619		238,647
Vornado Realty Trust		6,460		575,328
Weyerhaeuser Co.		22,177		674,181
				8,269,353
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.21%
CBRE Group Inc. Class Aa		10,810		251,116
Forest City Enterprises Inc. Class Aa,b		5,392		109,242
Jones Lang LaSalle Inc.		1,705		162,316
				522,674
ROAD & RAIL — 1.09%
Arkansas Best Corp.		966		26,440
CSX Corp.		39,302		1,024,210
Genesee & Wyoming Inc. Class Aa		1,774		177,116
Hertz Global Holdings Inc.a		15,425		354,158
Norfolk Southern Corp.		12,117		1,042,304
Ryder System Inc.		2,002		131,792
				2,756,020
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.31%
Advanced Micro Devices Inc.a,b		23,134		77,268
Analog Devices Inc.		11,857		584,550
Applied Materials Inc.		46,210		824,848
Entegris Inc.a		5,430		56,201
Intel Corp.		191,178		4,670,479
Lam Research Corp.a		6,273		340,185
SunPower Corp.a,b		1,642		49,572
Texas Instruments Inc.		42,656		1,794,964
				8,398,067
SOFTWARE — 2.05%
Adobe Systems Inc.a		18,338		993,919
Advent Software Inc.		1,848		62,000

Security	Shares		Value
Autodesk Inc.a		8,626	$	344,264
CA Inc.		12,235		388,584
Compuware Corp.		8,281		88,441
Electronic Arts Inc.a		11,610		304,762
FactSet Research Systems Inc.b		1,599		174,195
Intuit Inc.		10,848		774,656
Red Hat Inc.a		7,311		316,347
Salesforce.com Inc.a		21,553		1,150,068
Symantec Corp.		26,790		609,205
				5,206,441
SPECIALTY RETAIL — 4.07%
ANN INC.a		1,838		64,992
Bed Bath & Beyond Inc.a		8,462		654,282
Best Buy Co. Inc.		10,467		447,988
Brown Shoe Co. Inc.		1,615		36,241
Buckle Inc. (The)		1,098		53,736
CarMax Inc.a		8,649		406,416
Foot Locker Inc.		5,746		199,386
GameStop Corp. Class A		4,554		249,650
Gap Inc. (The)		11,633		430,305
Home Depot Inc. (The)		56,180		4,375,860
Men’s Wearhouse Inc. (The)		1,843		77,959
New York & Co. Inc.a		1,221		6,251
Office Depot Inc.a		9,261		51,769
OfficeMax Inc.		3,420		51,232
PetSmart Inc.		3,761		273,650
Pier 1 Imports Inc.		3,720		77,674
Staples Inc.		25,565		412,108
Tiffany & Co.		4,919		389,437
TJX Companies Inc. (The)		27,681		1,682,728
Tractor Supply Co.		5,354		382,008
				10,323,672
TEXTILES, APPAREL & LUXURY GOODS — 1.45%
Columbia Sportswear Co.		536		35,842
Deckers Outdoor Corp.a,b		1,339		92,163
Nike Inc. Class B		27,523		2,085,142
PVH Corp.		3,110		387,413
Under Armour Inc. Class Aa,b		3,077		249,699
VF Corp.		3,369		724,335
Wolverine World Wide Inc.		1,935		111,727
				3,686,321
THRIFTS & MORTGAGE FINANCE — 0.18%
New York Community Bancorp Inc.		16,940		274,597
People’s United Financial Inc.		12,671		182,843
				457,440

42 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

October 31, 2013

Security	Shares		Value
TRADING COMPANIES & DISTRIBUTORS — 0.55%
Fastenal Co.		10,838	$	539,732
Houston Wire & Cable Co.		668		9,265
United Rentals Inc.a		3,615		233,493
W.W. Grainger Inc.		2,275		611,907
				1,394,397
TRANSPORTATION INFRASTRUCTURE — 0.02%
Wesco Aircraft Holdings Inc.a,b		2,344		42,942
				42,942
WIRELESS TELECOMMUNICATION SERVICES — 0.28%
Leap Wireless International Inc.a		2,028		32,651
SBA Communications Corp. Class Aa		4,898		428,428
Sprint Corp.a		36,517		245,759
				706,838
TOTAL COMMON STOCKS
(Cost: $186,300,640)				253,244,768
SHORT-TERM INVESTMENTS — 2.57%
MONEY MARKET FUNDS — 2.57%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		5,135,090		5,135,090
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		298,436		298,436
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		1,096,763		1,096,763
				6,530,289
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,530,289)				6,530,289

	Value
TOTAL INVESTMENTS IN SECURITIES — 102.45%
(Cost: $192,830,929)	$	259,775,057
Other Assets, Less Liabilities — (2.45)%		(6,220,870	)
NET ASSETS — 100.00%	$	253,554,187

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited)

iSHARES^® MSCI USA ESG SELECT ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.84%
AEROSPACE & DEFENSE — 1.93%
Rockwell Collins Inc.		62,840	$	4,388,117
				4,388,117
AIR FREIGHT & LOGISTICS — 0.86%
Expeditors International of Washington Inc.		43,466		1,968,575
				1,968,575
AUTO COMPONENTS — 0.32%
Johnson Controls Inc.		15,606		720,217
				720,217
AUTOMOBILES — 0.77%
Ford Motor Co.		39,331		672,953
Tesla Motors Inc.a		6,807		1,088,712
				1,761,665
BEVERAGES — 1.04%
Coca-Cola Enterprises Inc.		56,888		2,373,936
				2,373,936
BIOTECHNOLOGY — 1.12%
Gilead Sciences Inc.a		31,004		2,200,974
Vertex Pharmaceuticals Inc.a		4,977		355,059
				2,556,033
BUILDING PRODUCTS — 0.89%
Masco Corp.		96,356		2,036,002
				2,036,002
CAPITAL MARKETS — 3.35%
Bank of New York Mellon Corp. (The)		21,158		672,825
BlackRock Inc.b		768		231,022
Franklin Resources Inc.		8,813		474,668
Legg Mason Inc.		7,489		288,102
Northern Trust Corp.		92,766		5,233,858
State Street Corp.		10,532		737,977
				7,638,452
CHEMICALS — 4.65%
Ecolab Inc.		53,170		5,636,020
Sigma-Aldrich Corp.		57,372		4,958,662
				10,594,682
COMMERCIAL BANKS — 0.84%
M&T Bank Corp.		13,600		1,530,408
PNC Financial Services Group Inc. (The)b		5,193		381,841
				1,912,249

Security	Shares		Value
COMMUNICATIONS EQUIPMENT — 2.45%
Cisco Systems Inc.		125,811	$	2,830,748
Motorola Solutions Inc.		16,887		1,055,775
QUALCOMM Inc.		24,334		1,690,483
				5,577,006
COMPUTERS & PERIPHERALS — 3.42%
Apple Inc.		11,786		6,156,417
Hewlett-Packard Co.		66,852		1,629,183
				7,785,600
CONSUMER FINANCE — 3.23%
American Express Co.		89,926		7,355,947
				7,355,947
CONTAINERS & PACKAGING — 1.95%
Ball Corp.		91,014		4,449,675
				4,449,675
DIVERSIFIED FINANCIAL SERVICES — 0.33%
IntercontinentalExchange Inc.a,c		3,876		747,022
				747,022
ELECTRIC UTILITIES — 3.22%
NextEra Energy Inc.		86,565		7,336,384
				7,336,384
ELECTRICAL EQUIPMENT — 2.91%
Eaton Corp. PLC		94,019		6,633,981
				6,633,981
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.20%
Corning Inc.		26,381		450,851
				450,851
ENERGY EQUIPMENT & SERVICES — 0.76%
FMC Technologies Inc.a,c		26,419		1,335,481
National Oilwell Varco Inc.		4,896		397,457
				1,732,938
FOOD & STAPLES RETAILING — 1.11%
Sysco Corp.		20,760		671,379
Whole Foods Market Inc.		29,571		1,866,817
				2,538,196
FOOD PRODUCTS — 2.71%
Campbell Soup Co.		39,482		1,680,749
General Mills Inc.		43,495		2,193,018
Green Mountain Coffee Roasters Inc.a,c		7,647		480,308
Kellogg Co.		17,712		1,120,284
Mondelez International Inc. Class A		20,590		692,647
				6,167,006

44 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA ESG SELECT ETF

October 31, 2013

Security	Shares		Value
HEALTH CARE EQUIPMENT & SUPPLIES — 1.98%
Becton, Dickinson and Co.		33,439	$	3,515,442
Medtronic Inc.		17,243		989,748
				4,505,190
HEALTH CARE PROVIDERS & SERVICES — 2.72%
Cigna Corp.		4,394		338,250
Henry Schein Inc.a,c		11,322		1,272,932
Patterson Companies Inc.		108,076		4,594,311
				6,205,493
HOTELS, RESTAURANTS & LEISURE — 2.49%
Marriott International Inc. Class A		12,028		542,222
McDonald’s Corp.		28,949		2,794,158
Starbucks Corp.		28,895		2,341,940
				5,678,320
HOUSEHOLD DURABLES — 0.51%
Mohawk Industries Inc.a		8,723		1,155,100
				1,155,100
HOUSEHOLD PRODUCTS — 2.32%
Clorox Co. (The)		12,056		1,087,331
Procter & Gamble Co. (The)		51,939		4,194,074
				5,281,405
INSURANCE — 8.22%
ACE Ltd.		56,426		5,385,298
Chubb Corp. (The)		2,517		231,765
Marsh & McLennan Companies Inc.		153,459		7,028,422
Principal Financial Group Inc.		10,785		511,856
Travelers Companies Inc. (The)		64,591		5,574,203
				18,731,544
INTERNET SOFTWARE & SERVICES — 1.96%
Google Inc. Class Aa,c		4,329		4,461,381
				4,461,381
IT SERVICES — 4.38%
Accenture PLC Class A		48,279		3,548,506
International Business Machines Corp.		33,213		5,952,102
Teradata Corp.a		11,057		487,282
				9,987,890
LEISURE EQUIPMENT & PRODUCTS — 0.52%
Mattel Inc.		26,790		1,188,672
				1,188,672
LIFE SCIENCES TOOLS & SERVICES — 3.03%
Agilent Technologies Inc.		68,802		3,492,389
Waters Corp.a		33,854		3,416,546
				6,908,935

Security	Shares		Value
MACHINERY — 2.46%
Cummins Inc.		15,372	$	1,952,551
Deere & Co.		25,600		2,095,104
Xylem Inc.		45,500		1,569,750
				5,617,405
MEDIA — 2.09%
Discovery Communications Inc. Series Aa		6,563		583,582
Discovery Communications Inc. Series C NVSa		2,860		236,551
Scripps Networks Interactive Inc. Class A		16,824		1,354,332
Time Warner Cable Inc.		21,480		2,580,822
				4,755,287
MULTI-UTILITIES — 1.42%
PG&E Corp.		77,289		3,234,545
				3,234,545
MULTILINE RETAIL — 0.09%
Nordstrom Inc.		3,553		214,850
				214,850
OFFICE ELECTRONICS — 0.33%
Xerox Corp.		76,262		758,044
				758,044
OIL, GAS & CONSUMABLE FUELS — 7.15%
Denbury Resources Inc.a,c		126,878		2,409,413
Devon Energy Corp.		19,219		1,215,025
EOG Resources Inc.		5,853		1,044,175
EQT Corp.		4,104		351,343
Hess Corp.		35,370		2,872,044
Marathon Oil Corp.		24,079		849,026
Noble Energy Inc.		4,783		358,390
Phillips 66		3,779		243,481
Pioneer Natural Resources Co.		6,320		1,294,210
Spectra Energy Corp.		159,372		5,668,862
				16,305,969
PERSONAL PRODUCTS — 0.46%
Estee Lauder Companies Inc. (The) Class A		14,742		1,046,092
				1,046,092
PHARMACEUTICALS — 1.95%
Johnson & Johnson		2,688		248,936
Merck & Co. Inc.		77,337		3,487,125
Zoetis Inc.		22,244		704,245
				4,440,306

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MSCI USA ESG SELECT ETF

October 31, 2013

Security	Shares		Value
PROFESSIONAL SERVICES — 0.10%
IHS Inc. Class Aa,c		2,064	$	225,079
				225,079
REAL ESTATE INVESTMENT TRUSTS (REITs) — 3.21%
Digital Realty Trust Inc.c		3,406		162,330
Liberty Property Trustc		87,524		3,255,017
Prologis Inc.		92,328		3,688,504
Vornado Realty Trust		2,467		219,711
				7,325,562
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.77%
CBRE Group Inc. Class Aa		75,471		1,753,191
				1,753,191
ROAD & RAIL — 1.09%
Norfolk Southern Corp.		28,883		2,484,516
				2,484,516
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.30%
Applied Materials Inc.		82,444		1,471,625
Intel Corp.		108,060		2,639,906
Texas Instruments Inc.		26,606		1,119,581
				5,231,112
SOFTWARE — 5.35%
Autodesk Inc.a		18,264		728,916
CA Inc.		31,588		1,003,235
Microsoft Corp.		171,704		6,069,736
Oracle Corp.		84,085		2,816,848
Salesforce.com Inc.a,c		6,410		342,038
Symantec Corp.		54,183		1,232,121
				12,192,894
SPECIALTY RETAIL — 1.93%
Best Buy Co. Inc.		7,511		321,471
CarMax Inc.a		6,480		304,495
Gap Inc. (The)		34,498		1,276,081
Staples Inc.		34,252		552,142
Tiffany & Co.		24,477		1,937,844
				4,392,033
TEXTILES, APPAREL & LUXURY GOODS — 2.74%
Nike Inc. Class B		70,748		5,359,869
PVH Corp.		7,185		895,035
				6,254,904

Security	Shares		Value
TRADING COMPANIES & DISTRIBUTORS — 0.21%
W.W. Grainger Inc.		1,798	$	483,608
				483,608
TOTAL COMMON STOCKS
(Cost: $176,291,332)				227,543,861
SHORT-TERM INVESTMENTS — 2.47%
MONEY MARKET FUNDS — 2.47%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,d,e		3,676,030		3,676,030
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,d,e		213,640		213,640
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,d		1,725,345		1,725,345
				5,615,015
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,615,015)				5,615,015
TOTAL INVESTMENTS IN SECURITIES — 102.31%
(Cost: $181,906,347)				233,158,876
Other Assets, Less Liabilities — (2.31)%				(5,256,154	)
NET ASSETS — 100.00%			$	227,902,722

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b Affiliated issuer. See Note 2.

^c All or a portion of this security represents a security on loan. See Note 5.

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

^e All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

46 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® COHEN & STEERS REIT ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.76%
DIVERSIFIED REITs — 6.48%
Liberty Property Trust		1,167,480	$	43,418,581
Vornado Realty Trust		1,406,057		125,223,437
				168,642,018
INDUSTRIAL REITs — 6.32%
Prologis Inc.		4,118,085		164,517,496
				164,517,496
OFFICE REITs — 13.31%
Alexandria Real Estate Equities Inc.a		582,197		38,296,919
Boston Properties Inc.		1,254,234		129,813,219
Digital Realty Trust Inc.a		1,061,420		50,587,277
Douglas Emmett Inc.a		1,095,952		27,322,083
Highwoods Properties Inc.a		737,963		28,485,372
SL Green Realty Corp.a		758,576		71,738,532
				346,243,402
RESIDENTIAL REITs — 16.97%
American Campus Communities Inc.a		866,038		29,930,273
AvalonBay Communities Inc.		1,005,232		125,704,262
Camden Property Trusta		701,230		45,018,966
Equity Residential		2,649,431		138,724,207
Essex Property Trust Inc.		314,073		50,565,753
UDR Inc.a		2,072,530		51,419,469
				441,362,930
RETAIL REITs — 26.70%
Federal Realty Investment Trusta		539,275		55,868,890
General Growth Properties Inc.		4,578,607		97,203,827
Kimco Realty Corp.		3,378,566		72,571,598
Macerich Co. (The)		1,136,504		67,292,402
Realty Income Corp.a		1,625,128		67,686,581
Regency Centers Corp.a		757,161		39,114,937
Simon Property Group Inc.		1,316,292		203,432,928
Tanger Factory Outlet Centers Inc.a		780,390		27,196,591
Taubman Centers Inc.		527,077		34,676,396
Weingarten Realty Investorsa		926,305		29,391,658
				694,435,808
SPECIALIZED REITs — 29.98%
HCP Inc.		3,756,564		155,897,406
Health Care REIT Inc.		2,350,990		152,461,701
Host Hotels & Resorts Inc.a		6,155,541		114,185,286

Security	Shares		Value
Public Storage		1,193,226	$	199,232,945
Ventas Inc.		2,423,170		158,087,611
				779,864,949
TOTAL COMMON STOCKS
(Cost: $2,426,409,182)				2,595,066,603
SHORT-TERM INVESTMENTS — 7.56%
MONEY MARKET FUNDS — 7.56%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,c,d		181,455,447		181,455,447
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,c,d		10,545,640		10,545,640
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,c		4,635,966		4,635,966
				196,637,053
TOTAL SHORT-TERM INVESTMENTS
(Cost: $196,637,053)				196,637,053
TOTAL INVESTMENTS IN SECURITIES — 107.32%
(Cost: $2,623,046,235)				2,791,703,656
Other Assets, Less Liabilities — (7.32)%				(190,287,340	)
NET ASSETS — 100.00%			$	2,601,416,316

^a All or a portion of this security represents a security on loan. See Note 5.

^b Affiliated issuer. See Note 2.

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

^d All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 47

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Basic Materials ETF			iShares U.S. Consumer Goods ETF			iShares U.S. Consumer Services ETF
ASSETS
Investments, at cost:
Unaffiliated	$	853,342,241		$	376,734,029		$	358,475,018
Affiliated (Note 2)		15,225,675			15,351,656			12,172,407
Total cost of investments	$	868,567,916		$	392,085,685		$	370,647,425
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	789,851,018		$	461,738,733		$	472,672,500
Affiliated (Note 2)		15,225,675			15,351,656			12,172,407
Total fair value of investments		805,076,693			477,090,389			484,844,907
Receivables:
Dividends and interest		762,150			734,089			156,799
Capital shares sold		97,715			—			—
Total Assets		805,936,558			477,824,478			485,001,706
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		14,596,128			14,738,821			11,711,222
Capital shares redeemed		45,142			—			—
Investment advisory fees (Note 2)		281,044			175,946			172,500
Total Liabilities		14,922,314			14,914,767			11,883,722
NET ASSETS	$	791,014,244		$	462,909,711		$	473,117,984
Net assets consist of:
Paid-in capital	$	912,863,486		$	385,357,663		$	376,951,813
Undistributed net investment income		1,283,325			1,078,948			117,757
Accumulated net realized loss		(59,641,344	)		(8,531,604	)		(18,149,068	)
Net unrealized appreciation (depreciation)		(63,491,223	)		85,004,704			114,197,482
NET ASSETS	$	791,014,244		$	462,909,711		$	473,117,984
Shares outstandingb		10,250,000			4,950,000			4,100,000
Net asset value per share	$	77.17		$	93.52		$	115.39

^a  Securities on loan with values of $14,205,975, $14,417,223 and $11,432,321, respectively. See Note 5.

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

See notes to financial statements.

48 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Financials ETF			iShares U.S. Industrials ETF		iShares U.S. Financial Services ETF
ASSETS
Investments, at cost:
Unaffiliated	$	1,209,196,771		$	1,278,589,219	$	529,042,388
Affiliated (Note 2)		67,089,885			45,971,284		31,850,180
Total cost of investments	$	1,276,286,656		$	1,324,560,503	$	560,892,568
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	1,281,767,398		$	1,446,714,609	$	557,425,870
Affiliated (Note 2)		70,674,236			45,971,284		34,635,824
Total fair value of investments		1,352,441,634			1,492,685,893		592,061,694
Receivables:
Dividends and interest		792,327			1,363,043		306,844
Total Assets		1,353,233,961			1,494,048,936		592,368,538
LIABILITIES
Payables:
Investment securities purchased		—			1,972,836		—
Collateral for securities on loan (Note 5)		39,359,719			43,088,933		9,985,291
Investment advisory fees (Note 2)		488,445			535,095		225,309
Total Liabilities		39,848,164			45,596,864		10,210,600
NET ASSETS	$	1,313,385,797		$	1,448,452,072	$	582,157,938
Net assets consist of:
Paid-in capital	$	1,350,118,956		$	1,253,377,304	$	629,559,134
Undistributed net investment income		1,926,371			1,117,349		733,580
Undistributed net realized gain (accumulated net realized loss)		(114,814,508	)		25,832,029		(79,303,902	)
Net unrealized appreciation		76,154,978			168,125,390		31,169,126
NET ASSETS	$	1,313,385,797		$	1,448,452,072	$	582,157,938
Shares outstandingb		17,300,000			15,350,000		7,600,000
Net asset value per share	$	75.92		$	94.36	$	76.60

^a  Securities on loan with values of $38,433,834, $42,147,960 and $9,755,514, respectively. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Real Estate ETF			iShares MSCI KLD 400 Social ETF			iShares MSCI USA ESG Select ETF
ASSETS
Investments, at cost:
Unaffiliated	$	4,474,428,000		$	184,058,062		$	175,852,353
Affiliated (Note 2)		302,621,186			8,772,867			6,053,994
Total cost of investments	$	4,777,049,186		$	192,830,929		$	181,906,347
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	4,153,382,597		$	250,186,420		$	226,930,998
Affiliated (Note 2)		302,621,186			9,588,637			6,227,878
Total fair value of investments		4,456,003,783			259,775,057			233,158,876
Cash		—			7,428			17,727
Receivables:
Dividends and interest		5,271,941			221,023			259,442
Capital shares sold		11,839,299			—			—
Total Assets		4,473,115,023			260,003,508			233,436,045
LIABILITIES
Payables:
Investment securities purchased		—			911,570			1,548,845
Collateral for securities on loan (Note 5)		302,552,987			5,433,526			3,889,670
Capital shares redeemed		10,705,359			—			—
Due to custodian		1,464			—			—
Investment advisory fees (Note 2)		1,638,764			104,225			94,808
Total Liabilities		314,898,574			6,449,321			5,533,323
NET ASSETS	$	4,158,216,449		$	253,554,187		$	227,902,722
Net assets consist of:
Paid-in capital	$	4,488,213,972		$	189,327,588		$	187,571,909
Undistributed (distributions in excess of) net investment income		(14,853,283	)		272,221			370,151
Undistributed net realized gain (accumulated net realized loss)		5,901,163			(2,989,750	)		(11,291,867	)
Net unrealized appreciation (depreciation)		(321,045,403	)		66,944,128			51,252,529
NET ASSETS	$	4,158,216,449		$	253,554,187		$	227,902,722
Shares outstandingb		62,800,000			3,850,000			3,100,000
Net asset value per share	$	66.21		$	65.86		$	73.52

^a  Securities on loan with values of $295,396,175, $5,303,057 and $3,808,565, respectively. See Note 5.

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

See notes to financial statements.

50 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares Cohen & Steers REIT ETF
ASSETS
Investments, at cost:
Unaffiliated	$	2,426,409,182
Affiliated (Note 2)		196,637,053
Total cost of investments	$	2,623,046,235
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	2,595,066,603
Affiliated (Note 2)		196,637,053
Total fair value of investments		2,791,703,656
Receivables:
Dividends and interest		2,490,626
Total Assets		2,794,194,282
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		192,001,087
Investment advisory fees (Note 2)		776,879
Total Liabilities		192,777,966
NET ASSETS	$	2,601,416,316
Net assets consist of:
Paid-in capital	$	2,906,160,709
Distributions in excess of net investment income		(5,858,206	)
Accumulated net realized loss		(467,543,608	)
Net unrealized appreciation		168,657,421
NET ASSETS	$	2,601,416,316
Shares outstandingb		32,650,000
Net asset value per share	$	79.68

^a  Securities on loan with a value of $187,647,845. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Operations (Unaudited)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Basic Materials ETF			iShares U.S. Consumer Goods ETF			iShares U.S. Consumer Services ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	7,610,258		$	5,675,544		$	2,711,818
Interest — affiliated (Note 2)		10			7			7
Securities lending income — affiliated (Note 2)		75,088			47,759			24,199
Total investment income		7,685,356			5,723,310			2,736,024
EXPENSES
Investment advisory fees (Note 2)		1,293,994			1,070,001			967,235
Total expenses		1,293,994			1,070,001			967,235
Net investment income		6,391,362			4,653,309			1,768,789
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(57,553,034	)		(331,417	)		(1,430,585	)
In-kind redemptions — unaffiliated		34,087,195			19,656,952			7,638,050
Net realized gain (loss)		(23,465,839	)		19,325,535			6,207,465
Net change in unrealized appreciation/depreciation		83,810,026			11,613,165			54,639,945
Net realized and unrealized gain		60,344,187			30,938,700			60,847,410
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	66,735,549		$	35,592,009		$	62,616,199

^a  Net of foreign withholding tax of $30,779, $  — and $2,032, respectively.

See notes to financial statements.

52 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Financials ETF			iShares U.S. Industrials ETF			iShares U.S. Financial Services ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	11,529,170		$	11,400,175		$	4,232,473
Dividends — affiliated (Note 2)		327,977			—			263,263
Interest — affiliated (Note 2)		18			16			10
Securities lending income — affiliated (Note 2)		31,196			56,034			7,629
Total investment income		11,888,361			11,456,225			4,503,375
EXPENSES
Investment advisory fees (Note 2)		2,677,897			2,703,740			1,229,761
Total expenses		2,677,897			2,703,740			1,229,761
Net investment income		9,210,464			8,752,485			3,273,614
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(10,031,726	)		(1,498,608	)		(1,259,754	)
Investments — affiliated (Note 2)		(27,599	)		—			(9,438	)
In-kind redemptions — unaffiliated		33,342,820			45,358,600			31,201,896
In-kind redemptions — affiliated (Note 2)		875,668			—			1,294,085
Net realized gain		24,159,163			43,859,992			31,226,789
Net change in unrealized appreciation/depreciation		66,410,581			140,436,737			32,699,113
Net realized and unrealized gain		90,569,744			184,296,729			63,925,902
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	99,780,208		$	193,049,214		$	67,199,516

^a  Net of foreign withholding tax of $  —, $497 and $  —, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 53

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Real Estate ETF			iShares MSCI KLD 400 Social ETF			iShares MSCI USA ESG Select ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	79,181,786		$	2,304,828		$	2,233,692
Dividends — affiliated (Note 2)		—			32,847			4,503
Interest — affiliated (Note 2)		146			4			3
Securities lending income — affiliated (Note 2)		357,912			11,171			5,350
Total investment income		79,539,844			2,348,850			2,243,548
EXPENSES
Investment advisory fees (Note 2)		10,425,516			579,449			546,256
Total expenses		10,425,516			579,449			546,256
Net investment income		69,114,328			1,769,401			1,697,292
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(91,059,144	)		(476,388	)		5,512,118
Investments — affiliated (Note 2)		—			(2,583	)		(168	)
In-kind redemptions — unaffiliated		135,121,306			5,167,938			1,126,764
In-kind redemptions — affiliated (Note 2)		—			—			3,023
Net realized gain		44,062,162			4,688,967			6,641,737
Net change in unrealized appreciation/depreciation		(572,187,752	)		18,837,080			11,972,321
Net realized and unrealized gain (loss)		(528,125,590	)		23,526,047			18,614,058
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(459,011,262	)	$	25,295,448		$	20,311,350

^a  Net of foreign withholding tax of $  —, $293 and $  —, respectively.

See notes to financial statements.

54 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Cohen & Steers REIT ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	41,520,366
Interest — affiliated (Note 2)		51
Securities lending income — affiliated (Note 2)		239,188
Total investment income		41,759,605
EXPENSES
Investment advisory fees (Note 2)		5,025,678
Total expenses		5,025,678
Net investment income		36,733,927
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(34,372,892	)
In-kind redemptions — unaffiliated		65,275,130
Net realized gain		30,902,238
Net change in unrealized appreciation/depreciation		(346,951,943	)
Net realized and unrealized loss		(316,049,705	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(279,315,778	)

See notes to financial statements.

FINANCIAL STATEMENTS 55

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares U.S. Basic Materials ETF						iShares U.S. Consumer Goods ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	6,391,362		$	11,538,165		$	4,653,309		$	8,936,363
Net realized gain (loss)		(23,465,839	)		(24,349,995	)		19,325,535			16,603,166
Net change in unrealized appreciation/depreciation		83,810,026			12,176,873			11,613,165			52,941,197
Net increase (decrease) in net assets resulting from operations		66,735,549			(634,957	)		35,592,009			78,480,726
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(5,697,041	)		(10,949,161	)		(4,549,077	)		(8,977,121	)
Total distributions to shareholders		(5,697,041	)		(10,949,161	)		(4,549,077	)		(8,977,121	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		484,000,654			320,168,018			4,588,444			101,540,536
Cost of shares redeemed		(261,003,837	)		(396,318,651	)		(67,333,909	)		(90,544,438	)
Net increase (decrease) in net assets from capital share transactions		222,996,817			(76,150,633	)		(62,745,465	)		10,996,098
INCREASE (DECREASE) IN NET ASSETS		284,035,325			(87,734,751	)		(31,702,533	)		80,499,703
NET ASSETS
Beginning of period		506,978,919			594,713,670			494,612,244			414,112,541
End of period	$	791,014,244		$	506,978,919		$	462,909,711		$	494,612,244
Undistributed net investment income included in net assets at end of period	$	1,283,325		$	589,004		$	1,078,948		$	974,716
SHARES ISSUED AND REDEEMED
Shares sold		6,500,000			4,700,000			50,000			1,250,000
Shares redeemed		(3,500,000	)		(5,950,000	)		(750,000	)		(1,200,000	)
Net increase (decrease) in shares outstanding		3,000,000			(1,250,000	)		(700,000	)		50,000

See notes to financial statements.

56 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Consumer Services ETF						iShares U.S. Financials ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,768,789		$	4,863,842		$	9,210,464		$	10,202,958
Net realized gain (loss)		6,207,465			14,266,641			24,159,163			(1,369,408	)
Net change in unrealized appreciation/depreciation		54,639,945			52,079,334			66,410,581			122,847,537
Net increase in net assets resulting from operations		62,616,199			71,209,817			99,780,208			131,681,087
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,660,175	)		(4,990,134	)		(7,827,638	)		(9,836,881	)
Total distributions to shareholders		(1,660,175	)		(4,990,134	)		(7,827,638	)		(9,836,881	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		53,501,802			87,373,633			503,300,434			578,748,164
Cost of shares redeemed		(21,314,358	)		(89,261,104	)		(161,652,061	)		(343,494,959	)
Net increase (decrease) in net assets from capital share transactions		32,187,444			(1,887,471	)		341,648,373			235,253,205
INCREASE IN NET ASSETS		93,143,468			64,332,212			433,600,943			357,097,411
NET ASSETS
Beginning of period		379,974,516			315,642,304			879,784,854			522,687,443
End of period	$	473,117,984		$	379,974,516		$	1,313,385,797		$	879,784,854
Undistributed net investment income included in net assets at end of period	$	117,757		$	9,143		$	1,926,371		$	543,545
SHARES ISSUED AND REDEEMED
Shares sold		500,000			1,000,000			6,850,000			9,400,000
Shares redeemed		(200,000	)		(1,050,000	)		(2,200,000	)		(5,800,000	)
Net increase (decrease) in shares outstanding		300,000			(50,000	)		4,650,000			3,600,000

See notes to financial statements.

FINANCIAL STATEMENTS 57

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Industrials ETF						iShares U.S. Financial Services ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	8,752,485		$	10,428,760		$	3,273,614		$	4,624,292
Net realized gain		43,859,992			42,049,514			31,226,789			9,569,330
Net change in unrealized appreciation/depreciation		140,436,737			61,347,211			32,699,113			52,303,514
Net increase in net assets resulting from operations		193,049,214			113,825,485			67,199,516			66,497,136
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(8,131,508	)		(10,247,121	)		(3,050,087	)		(4,571,096	)
Total distributions to shareholders		(8,131,508	)		(10,247,121	)		(3,050,087	)		(4,571,096	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		566,487,222			983,769,624			236,037,390			240,839,812
Cost of shares redeemed		(219,992,333	)		(566,816,525	)		(146,687,273	)		(184,214,328	)
Net increase in net assets from capital share transactions		346,494,889			416,953,099			89,350,117			56,625,484
INCREASE IN NET ASSETS		531,412,595			520,531,463			153,499,546			118,551,524
NET ASSETS
Beginning of period		917,039,477			396,508,014			428,658,392			310,106,868
End of period	$	1,448,452,072		$	917,039,477		$	582,157,938		$	428,658,392
Undistributed net investment income included in net assets at end of period	$	1,117,349		$	496,372		$	733,580		$	510,053
SHARES ISSUED AND REDEEMED
Shares sold		6,500,000			13,550,000			3,200,000			4,050,000
Shares redeemed		(2,450,000	)		(7,850,000	)		(2,000,000	)		(3,250,000	)
Net increase in shares outstanding		4,050,000			5,700,000			1,200,000			800,000

See notes to financial statements.

58 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Real Estate ETF						iShares MSCI KLD 400 Social ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	69,114,328		$	144,569,640		$	1,769,401		$	3,001,447
Net realized gain		44,062,162			520,716,653			4,688,967			6,594,693
Net change in unrealized appreciation/depreciation		(572,187,752	)		201,913,971			18,837,080			20,045,916
Net increase (decrease) in net assets resulting from operations		(459,011,262	)		867,200,264			25,295,448			29,642,056
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(83,967,611	)		(167,936,210	)		(1,627,521	)		(3,029,265	)
Total distributions to shareholders		(83,967,611	)		(167,936,210	)		(1,627,521	)		(3,029,265	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		11,465,222,510			12,212,722,316			37,390,497			32,535,549
Cost of shares redeemed		(12,533,236,417	)		(11,069,721,650	)		(18,340,586	)		(20,975,043	)
Net increase (decrease) in net assets from capital share transactions		(1,068,013,907	)		1,143,000,666			19,049,911			11,560,506
INCREASE (DECREASE) IN NET ASSETS		(1,610,992,780	)		1,842,264,720			42,717,838			38,173,297
NET ASSETS
Beginning of period		5,769,209,229			3,926,944,509			210,836,349			172,663,052
End of period	$	4,158,216,449		$	5,769,209,229		$	253,554,187		$	210,836,349
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(14,853,283	)	$	—		$	272,221		$	130,341
SHARES ISSUED AND REDEEMED
Shares sold		172,850,000			184,700,000			600,000			600,000
Shares redeemed		(188,600,000	)		(167,600,000	)		(300,000	)		(400,000	)
Net increase (decrease) in shares outstanding		(15,750,000	)		17,100,000			300,000			200,000

See notes to financial statements.

FINANCIAL STATEMENTS 59

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI USA ESG Select ETF						iShares Cohen & Steers REIT ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,697,292		$	3,133,099		$	36,733,927		$	68,809,345
Net realized gain		6,641,737			10,651,648			30,902,238			78,671,350
Net change in unrealized appreciation/depreciation		11,972,321			8,615,161			(346,951,943	)		269,236,491
Net increase (decrease) in net assets resulting from operations		20,311,350			22,399,908			(279,315,778	)		416,717,186
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,544,656	)		(3,104,740	)		(42,592,133	)		(84,162,432	)
Total distributions to shareholders		(1,544,656	)		(3,104,740	)		(42,592,133	)		(84,162,432	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,588,261			27,975,626			154,948,016			601,509,901
Cost of shares redeemed		(3,387,617	)		(27,384,735	)		(421,475,751	)		(651,284,398	)
Net increase (decrease) in net assets from capital share transactions		200,644			590,891			(266,527,735	)		(49,774,497	)
INCREASE (DECREASE) IN NET ASSETS		18,967,338			19,886,059			(588,435,646	)		282,780,257
NET ASSETS
Beginning of period		208,935,384			189,049,325			3,189,851,962			2,907,071,705
End of period	$	227,902,722		$	208,935,384		$	2,601,416,316		$	3,189,851,962
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	370,151		$	217,515		$	(5,858,206	)	$	—
SHARES ISSUED AND REDEEMED
Shares sold		50,000			450,000			1,850,000			7,550,000
Shares redeemed		(50,000	)		(450,000	)		(5,300,000	)		(8,350,000	)
Net decrease in shares outstanding		—			—			(3,450,000	)		(800,000	)

See notes to financial statements.

60 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Basic Materials ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	69.93		$	69.97		$	84.01		$	63.98		$	41.45		$	79.93
Income from investment operations:
Net investment incomea		0.81			1.51			1.18			0.94			0.85			1.03
Net realized and unrealized gain (loss)b		7.18			(0.12	)		(13.75	)		20.02			22.47			(38.35	)
Total from investment operations		7.99			1.39			(12.57	)		20.96			23.32			(37.32	)
Less distributions from:
Net investment income		(0.75	)		(1.43	)		(1.47	)		(0.93	)		(0.79	)		(1.16	)
Total distributions		(0.75	)		(1.43	)		(1.47	)		(0.93	)		(0.79	)		(1.16	)
Net asset value, end of period	$	77.17		$	69.93		$	69.97		$	84.01		$	63.98		$	41.45
Total return		11.55	%c		2.06	%		(14.85	)%		33.11	%		56.55	%		(46.86	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	791,014		$	506,979		$	594,714		$	1,213,933		$	783,756		$	402,113
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.47	%
Ratio of net investment income to average net assetsd		2.23	%		2.23	%		1.66	%		1.34	%		1.54	%		1.85	%
Portfolio turnover ratee		17	%		8	%		11	%		7	%		10	%		15	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 61

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Consumer Goods ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	87.54		$	73.95		$	69.19		$	58.96		$	44.05		$	60.32
Income from investment operations:
Net investment incomea		0.89			1.70			1.51			1.37			1.29			1.32
Net realized and unrealized gain (loss)b		5.97			13.60			4.67			10.28			14.94			(16.40	)
Total from investment operations		6.86			15.30			6.18			11.65			16.23			(15.08	)
Less distributions from:
Net investment income		(0.88	)		(1.71	)		(1.42	)		(1.42	)		(1.32	)		(1.19	)
Total distributions		(0.88	)		(1.71	)		(1.42	)		(1.42	)		(1.32	)		(1.19	)
Net asset value, end of period	$	93.52		$	87.54		$	73.95		$	69.19		$	58.96		$	44.05
Total return		7.90	%c		21.06	%		9.13	%		20.10	%		37.20	%		(25.16	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	462,910		$	494,612		$	414,113		$	332,123		$	353,778		$	308,323
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.96	%		2.22	%		2.20	%		2.24	%		2.44	%		2.67	%
Portfolio turnover ratee		7	%		7	%		6	%		7	%		6	%		10	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

62 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Consumer Services ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	99.99		$	81.99		$	73.56		$	63.26		$	44.54		$	60.05
Income from investment operations:
Net investment incomea		0.44			1.30			0.86			0.68			0.55			0.57
Net realized and unrealized gain (loss)b		15.38			18.02			8.40			10.33			18.73			(15.50	)
Total from investment operations		15.82			19.32			9.26			11.01			19.28			(14.93	)
Less distributions from:
Net investment income		(0.42	)		(1.32	)		(0.83	)		(0.71	)		(0.56	)		(0.58	)
Total distributions		(0.42	)		(1.32	)		(0.83	)		(0.71	)		(0.56	)		(0.58	)
Net asset value, end of period	$	115.39		$	99.99		$	81.99		$	73.56		$	63.26		$	44.54
Total return		15.86	%c		23.82	%		12.74	%		17.58	%		43.54	%		(24.85	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	473,118		$	379,975		$	315,642		$	209,638		$	196,109		$	178,162
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		0.83	%		1.50	%		1.19	%		1.08	%		1.06	%		1.19	%
Portfolio turnover ratee		3	%		9	%		5	%		4	%		5	%		6	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 63

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Financials ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	69.55		$	57.76		$	59.55		$	58.21		$	39.54		$	86.78
Income from investment operations:
Net investment incomea		0.58			1.06			0.85			0.63			0.65			1.68
Net realized and unrealized gain (loss)b		6.27			11.76			(1.78	)		1.33			18.71			(46.95	)
Total from investment operations		6.85			12.82			(0.93	)		1.96			19.36			(45.27	)
Less distributions from:
Net investment income		(0.48	)		(1.03	)		(0.86	)		(0.62	)		(0.68	)		(1.97	)
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		(0.48	)		(1.03	)		(0.86	)		(0.62	)		(0.69	)		(1.97	)
Net asset value, end of period	$	75.92		$	69.55		$	57.76		$	59.55		$	58.21		$	39.54
Total return		9.88	%c		22.50	%		(1.35	)%		3.45	%		49.23	%		(52.67	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,313,386		$	879,785		$	522,687		$	544,841		$	564,678		$	504,158
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.55	%		1.73	%		1.62	%		1.14	%		1.30	%		3.37	%
Portfolio turnover ratee		3	%		10	%		6	%		8	%		18	%		15	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

64 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Industrials ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	81.15		$	70.81		$	72.95		$	60.93		$	41.13		$	70.48
Income from investment operations:
Net investment incomea		0.65			1.24			1.03			1.04			0.77			1.09
Net realized and unrealized gain (loss)b		13.13			10.30			(2.15	)		12.02			19.81			(29.35	)
Total from investment operations		13.78			11.54			(1.12	)		13.06			20.58			(28.26	)
Less distributions from:
Net investment income		(0.57	)		(1.20	)		(1.02	)		(1.04	)		(0.78	)		(1.09	)
Total distributions		(0.57	)		(1.20	)		(1.02	)		(1.04	)		(0.78	)		(1.09	)
Net asset value, end of period	$	94.36		$	81.15		$	70.81		$	72.95		$	60.93		$	41.13
Total return		17.05	%c		16.53	%		(1.38	)%		21.82	%		50.49	%		(40.24	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,448,452		$	917,039		$	396,508		$	532,529		$	365,574		$	213,853
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income to average net assetsd		1.46	%		1.69	%		1.56	%		1.68	%		1.52	%		2.11	%
Portfolio turnover ratee		4	%		7	%		6	%		6	%		4	%		6	%

^a  Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 65

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Financial Services ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	66.98		$	55.38		$	58.07		$	60.44		$	41.45		$	92.79
Income from investment operations:
Net investment incomea		0.45			0.84			0.64			0.32			0.39			1.93
Net realized and unrealized gain (loss)b		9.58			11.60			(2.71	)		(2.43	)		19.07			(51.27	)
Total from investment operations		10.03			12.44			(2.07	)		(2.11	)		19.46			(49.34	)
Less distributions from:
Net investment income		(0.41	)		(0.84	)		(0.62	)		(0.26	)		(0.47	)		(2.00	)
Total distributions		(0.41	)		(0.84	)		(0.62	)		(0.26	)		(0.47	)		(2.00	)
Net asset value, end of period	$	76.60		$	66.98		$	55.38		$	58.07		$	60.44		$	41.45
Total return		15.00	%c		22.74	%		(3.40	)%		(3.45	)%		47.18	%		(53.73	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	582,158		$	428,658		$	310,107		$	252,592		$	344,535		$	317,112
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.20	%		1.43	%		1.27	%		0.58	%		0.74	%		3.53	%
Portfolio turnover ratee		2	%		5	%		4	%		5	%		17	%		19	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

66 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Real Estate ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	73.45		$	63.90		$	62.15		$	52.92		$	33.13		$	68.90
Income from investment operations:
Net investment incomea		1.02			2.07			1.81			1.54			1.60			1.94
Net realized and unrealized gain (loss)b		(7.05	)		9.93			2.15			9.68			20.04			(34.81	)
Total from investment operations		(6.03	)		12.00			3.96			11.22			21.64			(32.87	)
Less distributions from:
Net investment income		(1.21	)		(2.45	)		(2.21	)		(1.99	)		(1.85	)		(2.90	)
Total distributions		(1.21	)		(2.45	)		(2.21	)		(1.99	)		(1.85	)		(2.90	)
Net asset value, end of period	$	66.21		$	73.45		$	63.90		$	62.15		$	52.92		$	33.13
Total return		(8.16	)%c		19.35	%		6.84	%		21.88	%		66.87	%		(48.42	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,158,216		$	5,769,209		$	3,926,945		$	3,598,770		$	3,159,390		$	1,721,081
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income to average net assetsd		2.99	%		3.16	%		3.11	%		2.83	%		3.81	%		4.50	%
Portfolio turnover ratee		16	%		16	%		14	%		17	%		17	%		20	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI KLD 400 Social ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	59.39		$	51.54		$	50.11		$	45.41		$	32.91		$	48.71
Income from investment operations:
Net investment incomea		0.48			0.90			0.73			0.65			0.54			0.66
Net realized and unrealized gain (loss)b		6.43			7.86			1.43			4.69			12.50			(15.80	)
Total from investment operations		6.91			8.76			2.16			5.34			13.04			(15.14	)
Less distributions from:
Net investment income		(0.44	)		(0.91	)		(0.73	)		(0.64	)		(0.54	)		(0.66	)
Total distributions		(0.44	)		(0.91	)		(0.73	)		(0.64	)		(0.54	)		(0.66	)
Net asset value, end of period	$	65.86		$	59.39		$	51.54		$	50.11		$	45.41		$	32.91
Total return		11.68	%c		17.25	%		4.46	%		11.95	%		39.84	%		(31.21	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	253,554		$	210,836		$	172,663		$	157,831		$	118,058		$	65,814
Ratio of expenses to average net assetsd		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetsd		1.53	%		1.71	%		1.54	%		1.43	%		1.35	%		1.80	%
Portfolio turnover ratee		7	%		11	%		9	%		10	%		14	%		13	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

68 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI USA ESG Select ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	67.40		$	60.98		$	59.19		$	51.73		$	37.96		$	57.41
Income from investment operations:
Net investment incomea		0.55			1.04			0.86			0.81			0.71			0.92
Net realized and unrealized gain (loss)b		6.07			6.42			1.76			7.47			13.79			(19.47	)
Total from investment operations		6.62			7.46			2.62			8.28			14.50			(18.55	)
Less distributions from:
Net investment income		(0.50	)		(1.04	)		(0.83	)		(0.82	)		(0.73	)		(0.90	)
Total distributions		(0.50	)		(1.04	)		(0.83	)		(0.82	)		(0.73	)		(0.90	)
Net asset value, end of period	$	73.52		$	67.40		$	60.98		$	59.19		$	51.73		$	37.96
Total return		9.86	%c		12.45	%		4.58	%		16.25	%		38.45	%		(32.47	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	227,903		$	208,935		$	189,049		$	171,641		$	131,915		$	94,906
Ratio of expenses to average net assetsd		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetsd		1.55	%		1.71	%		1.52	%		1.56	%		1.54	%		2.08	%
Portfolio turnover ratee		15	%		34	%		20	%		35	%		37	%		52	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 69

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Cohen & Steers REIT ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	88.36		$	78.78		$	74.34		$	61.37		$	37.23		$	85.34
Income from investment operations:
Net investment incomea		1.05			1.91			1.66			1.39			1.60			2.05
Net realized and unrealized gain (loss)b		(8.50	)		10.03			4.98			13.49			24.48			(46.92	)
Total from investment operations		(7.45	)		11.94			6.64			14.88			26.08			(44.87	)
Less distributions from:
Net investment income		(1.23	)		(2.36	)		(2.20	)		(1.91	)		(1.94	)		(3.24	)
Total distributions		(1.23	)		(2.36	)		(2.20	)		(1.91	)		(1.94	)		(3.24	)
Net asset value, end of period	$	79.68		$	88.36		$	78.78		$	74.34		$	61.37		$	37.23
Total return		(8.42	)%c		15.58	%		9.36	%		24.84	%		71.83	%		(53.43	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,601,416		$	3,189,852		$	2,907,072		$	2,598,139		$	2,154,045		$	1,124,212
Ratio of expenses to average net assetsd		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Ratio of net investment income to average net assetsd		2.56	%		2.40	%		2.34	%		2.18	%		3.37	%		3.68	%
Portfolio turnover ratee		7	%		11	%		16	%		9	%		12	%		17	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

70 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

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

iShares ETF	Former Name a	Diversification Classification
U.S. Basic Materials	iShares Dow Jones U.S. Basic Materials Sector Index Fund		Non-diversified
U.S. Consumer Goods	iShares Dow Jones U.S. Consumer Goods Sector Index Fund		Non-diversified
U.S. Consumer Services	iShares Dow Jones U.S. Consumer Services Sector Index Fund		Diversified
U.S. Financials	iShares Dow Jones U.S. Financial Sector Index Fund		Non-diversified
U.S. Industrials	iShares Dow Jones U.S. Industrial Sector Index Fund		Diversified
U.S. Financial Services	iShares Dow Jones U.S. Financial Services Index Fund		Non-diversified
U.S. Real Estate	iShares Dow Jones U.S. Real Estate Index Fund		Diversified
MSCI KLD 400 Social	iShares MSCI KLD 400 Social Index Fund		Diversified
MSCI USA ESG Select	iShares MSCI USA ESG Select Social Index Fund		Diversified
Cohen & Steers REIT	iShares Cohen & Steers Realty Majors Index Fund		Non-diversified

^a The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

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

1. SIGNIFICANT ACCOUNTING POLICIES

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

NOTES TO FINANCIAL STATEMENTS 71

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

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

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

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

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

72 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

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

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

As of October 31, 2013, the value of each of the Funds’ investments was classified as Level 1. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

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

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

NOTES TO FINANCIAL STATEMENTS 73

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

For its investment advisory services to each of the iShares U.S. Basic Materials, iShares U.S. Consumer Goods, iShares U.S. Consumer Services, iShares U.S. Financials, iShares U.S. Industrials, iShares U.S. Financial Services and iShares U.S. Real Estate ETFs, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.48	%	First $10 billion
	0.43		Over $10 billion, up to and including $20 billion
	0.38		Over $20 billion

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

iShares ETF	Investment Advisory Fee
MSCI KLD 400 Social		0.50	%
MSCI USA ESG Select		0.50

Effective July 1, 2013, for its investment advisory services to the iShares Cohen & Steers REIT ETF, BFA is entitled to an annual investment advisory fee based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.3500	%	First $121 billion
	0.3325	a	Over $121 billion, up to and including $211 billion
	0.3159	a	Over $211 billion

^a  Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

Prior to July 1, 2013, for its investment advisory services to the iShares Cohen & Steers REIT ETF, BFA was entitled to an annual investment advisory fee of 0.35% based on the Fund’s average daily net assets.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

74 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

For the six months ended October 31, 2013, each Fund retained 65% of securities lending income and paid a fee to BTC equal to 35% of such income in the amounts as follows:

iShares ETF	Securities Lending Agent Fees
U.S. Basic Materials	$	40,431
U.S. Consumer Goods		25,717
U.S. Consumer Services		13,030
U.S. Financials		16,798
U.S. Industrials		30,173

iShares ETF	Securities Lending Agent Fees
U.S. Financial Services	$	4,108
U.S. Real Estate		192,722
MSCI KLD 400 Social		6,016
MSCI USA ESG Select		2,881
Cohen & Steers REIT		128,793

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.

Cross trades for the six months ended October 31, 2013, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. 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.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the statements of operations.

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

Investments in issuers considered to be affiliates of the Funds (excluding short-term investments) during the six months ended October 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
U.S. Financials
BlackRock Inc.		36,368		20,285		(7,065	)		49,588	$	14,916,566	$	153,169	$	503,235
PNC Financial Services Group Inc. (The)		152,842		84,783		(28,354	)		209,271		15,387,697		174,808		344,834
										$	30,304,263	$	327,977	$	848,069
U.S. Financial Services
BlackRock Inc.		32,130		16,559		(10,287	)		38,402	$	11,551,705	$	120,967	$	881,189
PNC Financial Services Group Inc. (The)		134,993		69,805		(42,720	)		162,078		11,917,595		142,296		403,458
										$	23,469,300	$	263,263	$	1,284,647

NOTES TO FINANCIAL STATEMENTS 75

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
MSCI KLD 400 Social
BlackRock Inc.		4,563		846		(219	)		5,190	$	1,561,204	$	16,037	$	(1,988	)
PNC Financial Services Group Inc. (The)		17,788		3,322		(749	)		20,361		1,497,144		16,810		(595	)
										$	3,058,348	$	32,847	$	(2,583	)
MSCI USA ESG Select
BlackRock Inc.		—		768		—			768	$	231,022	$	—	$	—
PNC Financial Services Group Inc. (The)		5,128		182		(117	)		5,193		381,841		4,503		2,855
										$	612,863	$	4,503	$	2,855

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

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2013 were as follows:

iShares ETF	Purchases		Sales
U.S. Basic Materials	$	97,871,024	$	97,446,895
U.S. Consumer Goods		31,072,345		31,190,007
U.S. Consumer Services		12,589,776		12,346,335
U.S. Financials		38,909,412		31,543,696
U.S. Industrials		43,703,606		41,920,149
U.S. Financial Services		10,840,286		11,077,264
U.S. Real Estate		726,541,095		810,589,024
MSCI KLD 400 Social		15,808,429		15,969,458
MSCI USA ESG Select		31,938,460		31,895,637
Cohen & Steers REIT		206,264,300		227,333,434

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iSHARES^® TRUST

In-kind transactions (see Note 4) for the six months ended October 31, 2013 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
U.S. Basic Materials	$	482,895,676	$	260,172,584
U.S. Consumer Goods		4,575,053		67,157,881
U.S. Consumer Services		53,454,702		21,289,201
U.S. Financials		493,582,033		158,029,726
U.S. Industrials		564,130,015		219,141,281
U.S. Financial Services		235,532,806		146,051,899
U.S. Real Estate		10,536,739,217		11,503,979,216
MSCI KLD 400 Social		37,303,462		18,048,951
MSCI USA ESG Select		3,582,721		3,382,584
Cohen & Steers REIT		137,459,675		381,235,850

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

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

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities 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 Funds and any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates.

As of October 31, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of October 31, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

NOTES TO FINANCIAL STATEMENTS 77

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, a Fund can resell or re-pledge the collateral and the borrower can resell or re-pledge the loaned securities.

As of October 31, 2013, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:

iShares ETF	Market Value of Securities on Loan
U.S. Basic Materials	$	14,205,975
U.S. Consumer Goods		14,417,223
U.S. Consumer Services		11,432,321
U.S. Financials		38,433,834
U.S. Industrials		42,147,960

iShares ETF	Market Value of Securities on Loan
U.S. Financial Services	$	9,755,514
U.S. Real Estate		295,396,175
MSCI KLD 400 Social		5,303,057
MSCI USA ESG Select		3,808,565
Cohen & Steers REIT		187,647,845

The value of the related collateral disclosed in the Funds’ schedules of investments exceeded the market value of the securities on loan at period end.

6. INCOME TAX INFORMATION

For purposes of U.S. GAAP, 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 values per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

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As of April 30, 2013, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
U.S. Basic Materials	$	8,197,039	$	—	$	2,027,542	$	2,533,237	$	8,036,664	$	10,812,780	$	64,751	$	31,672,013
U.S. Consumer Goods		3,464,840		6,571,402		1,320,322		—		1,597,881		11,893,780		—		24,848,225
U.S. Consumer Services		6,235,460		2,292,509		183,523		—		3,693,668		6,983,187		1,146,492		20,534,839
U.S. Financials		6,056,072		—		38,903		2,428,708		50,933,047		52,510,524		—		111,967,254
U.S. Industrials		3,629,379		—		230,285		—		276,129		9,045,831		—		13,181,624
U.S. Financial Services		9,969,670		—		—		1,046,051		40,231,342		41,743,037		6,373,191		99,363,291
U.S. Real Estate		—		—		—		—		—		23,640,196		—		23,640,196
MSCI KLD 400 Social		—		—		—		—		—		4,296,102		374,960		4,671,062
MSCI USA ESG Select		—		—		—		—		426,933		15,576,262		74,125		16,077,320
Cohen & Steers REIT		35,345,009		—		—		—		195,808,359		96,413,332		—		327,566,700

^a  Must be utilized prior to losses subject to expiration.

As of October 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
U.S. Basic Materials	$	871,611,333	$	39,014,589	$	(105,549,229	)	$	(66,534,640	)
U.S. Consumer Goods		395,094,599		92,527,518		(10,531,728	)		81,995,790
U.S. Consumer Services		373,322,798		122,703,824		(11,181,715	)		111,522,109
U.S. Financials		1,303,293,073		115,431,860		(66,283,299	)		49,148,561
U.S. Industrials		1,328,429,608		180,130,572		(15,874,287	)		164,256,285
U.S. Financial Services		571,524,262		53,198,608		(32,661,176	)		20,537,432
U.S. Real Estate		4,791,569,989		45,121,306		(380,687,512	)		(335,566,206	)
MSCI KLD 400 Social		195,801,118		69,738,239		(5,764,300	)		63,973,939
MSCI USA ESG Select		183,762,631		52,676,158		(3,279,913	)		49,396,245
Cohen & Steers REIT		2,793,925,381		249,633,482		(251,855,207	)		(2,221,725	)

Management has reviewed the tax positions as of October 31, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

NOTES TO FINANCIAL STATEMENTS 79

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

7. LEGAL PROCEEDINGS

On January 18, 2013, a lawsuit was filed in the United States District Court for the Middle District of Tennessee by Laborers’ Local 265 Pension Fund and Plumbers and Pipefitters Local No. 572 Pension Fund against BFA, BTC, and the current members of the iShares Trust Board of Trustees and the Board of Directors of iShares, Inc. (collectively, “Defendants”) for alleged violations of, among other things, Sections 36(a) and 36(b) of the 1940 Act. The complaint purports to be brought derivatively on behalf of iShares Trust and iShares, Inc., as well as the following eight funds: iShares Russell Mid-Cap ETF; iShares MSCI EAFE ETF; iShares MSCI Emerging Markets ETF; iShares Russell 2000 Growth ETF; iShares Russell 2000 Value ETF; iShares Core S&P Mid-Cap ETF; iShares Core S&P Small-Cap ETF; and iShares U.S. Real Estate ETF. The complaint alleges, among other things, that BFA and BTC breached their fiduciary duties under the 1940 Act by charging allegedly excessive fees in connection with the provision of securities lending services to the above eight funds, that the individual defendants breached their fiduciary duties under the 1940 Act by approving those fee arrangements, and that the securities lending contracts are unenforceable under Section 47(b) of the 1940 Act. Plaintiffs seek injunctive relief, rescission of the securities lending contracts, and monetary damages of an unspecified amount. Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit. On March 11, 2013, the Defendants filed a motion to dismiss the lawsuit. On August 28, 2013, the court dismissed the claims without prejudice. The deadline for the plaintiffs’ request to amend the complaint was September 17, 2013. The plaintiffs submitted a motion to extend the time to file and the court granted the 30-day extension until October 17, 2013. The plaintiffs did not amend their complaint prior to this deadline. The Court dismissed the complaint with prejudice on October 24, 2013. The plaintiffs filed a notice of appeal on November 8, 2013.

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

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I.  iShares U.S. Basic Materials ETF, iShares U.S. Consumer Goods ETF, iShares U.S. Consumer Services ETF, iShares U.S. Financials ETF, iShares U.S. Industrials ETF, iShares U.S. Financial Services ETF and iShares U.S. Real Estate Index ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

The Board also noted that the investment advisory fee rates and overall expenses for the Funds compared favorably to the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group. The Board further noted that the iShares Dow Jones U.S. Real Estate Index Fund ranked in the fourth Lipper Quintile for expenses when compared to a subset of the Lipper Group identified as pure index funds.

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In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the

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Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the nature of such costs may impact the existence of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or

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purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

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

II.  iShares MSCI KLD 400 Social ETF and iShares MSCI USA ESG Select ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising such Fund’s applicable peer group pursuant to Lipper’s proprietary methodology, and any registered funds that would otherwise have been excluded from Lipper’s comparison group because of the size, sponsor, inception date, or other differentiating factors included in Lipper’s proprietary selection methodology, including adding “at cost” funds, but that were nonetheless included at the request of BFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track indexes similar to those tracked by the Funds, the Lipper Group included in part mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers), as applicable. In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information.

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The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information provided in the Lipper Report may or may not provide meaningful direct comparisons to the Funds.

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

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 85

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

86 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

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

III.  iShares Cohen & Steers REIT ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary methodology, and any registered funds that would otherwise have been excluded from Lipper’s comparison

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 87

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

group because of the size, sponsor, inception date, or other differentiating factors included in Lipper’s proprietary selection methodology, including adding “at cost” funds, but that were nonetheless included at the request of BFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track an index similar to that tracked by the Fund, the Lipper Group included in part mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers), as applicable. In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information provided in the Lipper Report may or may not provide meaningful direct comparisons to the Fund.

The Board also noted that the investment advisory fee rate and overall expenses for the Fund compared favorably to the investment advisory fee rates and overall expenses of the funds in its respective Lipper Group.

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

88 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the nature of such costs may impact the existence of scale benefits. The Board noted that BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for a breakpoint in the Fund’s investment advisory fee rate as the aggregate assets of certain iShares Funds, including the Fund, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 89

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

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

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

90 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

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

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
U.S. Basic Materials	$	0.752637	$	—	$	—	$	0.752637		100	%		—	%		—	%		100	%
U.S. Consumer Services		0.422189		—		—		0.422189		100			—			—			100
U.S. Financials		0.430160		—		0.048934		0.479094		90			—			10			100
U.S. Real Estate		1.119488		—		0.090899		1.210387		92			—			8			100
MSCI KLD 400 Social		0.435923		—		0.003073		0.438996		99			—			1			100
MSCI USA ESG Select		0.493343		—		0.004933		0.498276		99			—			1			100
Cohen & Steers REIT		1.230715		—		—		1.230715		100			—			—			100

SUPPLEMENTAL INFORMATION 91

Notes:

92 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 93

Notes:

94 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold, or promoted by S&P Dow Jones Indices, LLC, MSCI Inc. or Cohen & Steers Capital Management, 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.

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

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

©2013 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.

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iS-SAR-42-1013

OCTOBER 31, 2013

2013 SEMI-ANNUAL REPORT (UNAUDITED)

iShares Trust

^Ø   iShares U.S. Aerospace & Defense ETF  |  ITA  |  NYSE Arca

^Ø   iShares U.S. Broker-Dealers ETF  |  IAI  |  NYSE Arca

^Ø   iShares U.S. Healthcare Providers ETF  |  IHF  |  NYSE Arca

^Ø   iShares U.S. Home Construction ETF  |  ITB  |  NYSE Arca

^Ø   iShares U.S. Insurance ETF  |  IAK  |  NYSE Arca

^Ø   iShares U.S. Medical Devices ETF  |  IHI  |  NYSE Arca

^Ø   iShares U.S. Oil & Gas Exploration & Production ETF  |  IEO  |  NYSE Arca

^Ø   iShares U.S. Oil Equipment & Services ETF  |  IEZ  |  NYSE Arca

^Ø   iShares U.S. Pharmaceuticals ETF  |  IHE  |  NYSE Arca

^Ø   iShares U.S. Regional Banks ETF  |  IAT  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	15
Shareholder Expenses	15
Schedules of Investments	16
iShares U.S. Aerospace & Defense ETF	16
iShares U.S. Broker-Dealers ETF	17
iShares U.S. Healthcare Providers ETF	18
iShares U.S. Home Construction ETF	20
iShares U.S. Insurance ETF	21
iShares U.S. Medical Devices ETF	23
iShares U.S. Oil & Gas Exploration & Production ETF	24
iShares U.S. Oil Equipment & Services ETF	26
iShares U.S. Pharmaceuticals ETF	27
iShares U.S. Regional Banks ETF	28
Financial Statements	30
Financial Highlights	43
Notes to Financial Statements	53
Board Review and Approval of Investment Advisory Contract	63
Supplemental Information	67

Fund Performance Overview

iSHARES^® U.S. AEROSPACE & DEFENSE ETF

Performance as of October 31, 2013

The iShares U.S. Aerospace & Defense ETF (the “Fund”), formerly the iShares Dow Jones U.S. Aerospace & Defense Index Fund, seeks to track the investment results of an index composed of U.S. equities in the aerospace and defense sector, as represented by the Dow Jones U.S. Select Aerospace & Defense Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 28.74%, net of fees, while the total return for the Index was 29.04%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		50.37%		50.43%		50.90%		50.37%		50.43%		50.90%
5 Years		18.90%		18.87%		19.39%		137.61%		137.33%		142.56%
Since Inception		10.26%		10.27%		10.75%		108.14%		108.22%		115.03%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,287.40	$	2.59	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Aerospace & Defense	92.79	%
Leisure Products	2.11
Electronic Equipment & Instruments	2.00
Industrial Machinery	1.40
Other**	1.70
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

Boeing Co. (The)	10.01	%
United Technologies Corp.	9.07
Precision Castparts Corp.	6.47
Lockheed Martin Corp.	6.23
General Dynamics Corp.	5.41
Raytheon Co.	5.35
Northrop Grumman Corp.	5.31
L-3 Communications Holdings Inc.	3.27
Rockwell Collins Inc.	3.19
B/E Aerospace Inc.	3.13
TOTAL	57.44	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® U.S. BROKER-DEALERS ETF

Performance as of October 31, 2013

The iShares U.S. Broker-Dealers ETF (the “Fund”), formerly the iShares Dow Jones U.S. Broker-Dealers Index Fund, seeks to track the investment results of an index composed of U.S. equities in the investment services sector, as represented by the Dow Jones U.S. Select Investment Services Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 24.08%, net of fees, while the total return for the Index was 23.88%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		55.70%		55.70%		55.41%		55.70%		55.70%		55.41%
5 Years		10.10%		10.12%		10.34%		61.78%		61.91%		63.55%
Since Inception		(3.29)%		(3.29)%		(3.08)%		(22.18)%		(22.18)%		(20.90)%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,240.80	$	2.54	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Investment Banking & Brokerage	59.18	%
Specialized Finance	34.36
Asset Management & Custody Banks	6.46
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

Goldman Sachs Group Inc. (The)	7.56	%
Morgan Stanley	7.05
Ameriprise Financial Inc.	6.46
Charles Schwab Corp. (The)	6.46
CME Group Inc.	6.29
IntercontinentalExchange Inc.	5.80
NYSE Euronext Inc.	5.37
Raymond James Financial Inc.	4.69
NASDAQ OMX Group Inc. (The)	4.67
TD Ameritrade Holding Corp.	4.63
TOTAL	58.98	%

6 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. HEALTHCARE PROVIDERS ETF

Performance as of October 31, 2013

The iShares U.S. Healthcare Providers ETF (the “Fund”), formerly the iShares Dow Jones U.S. Healthcare Providers Index Fund, seeks to track the investment results of an index composed of U.S. equities in the healthcare providers sector, as represented by the Dow Jones U.S. Select Health Care Providers Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.67%, net of fees, while the total return for the Index was 11.90%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		30.50%		30.65%		31.04%		30.50%		30.65%		31.04%
5 Years		20.61%		20.61%		21.07%		155.27%		155.27%		160.11%
Since Inception		8.31%		8.31%		8.75%		81.98%		82.08%		87.57%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,116.70	$	2.40	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Managed Health Care	42.59	%
Health Care Services	28.68
Health Care Facilities	22.30
Life Sciences Tools & Services	3.45
Health Care Technology	1.52
Diversified Support Services	1.08
Health Care Distributors	0.38
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

UnitedHealth Group Inc.	13.02	%
Express Scripts Holding Co.	10.59
WellPoint Inc.	6.67
Aetna Inc.	6.28
Cigna Corp.	5.94
Humana Inc.	4.46
HCA Holdings Inc.	4.36
DaVita HealthCare Partners Inc.	3.49
Laboratory Corp. of America Holdings	3.27
Quest Diagnostics Inc.	3.24
TOTAL	61.32	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® U.S. HOME CONSTRUCTION ETF

Performance as of October 31, 2013

The iShares U.S. Home Construction ETF (the “Fund”), formerly the iShares Dow Jones U.S. Home Construction Index Fund, seeks to track the investment results of an index composed of U.S. equities in the home construction sector, as represented by the Dow Jones U.S. Select Home Construction Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -6.93%, net of fees, while the total return for the Index was -6.65%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		10.32%		10.17%		10.92%		10.32%		10.17%		10.92%
5 Years		13.68%		13.67%		14.55%		89.86%		89.76%		97.22%
Since Inception		(9.10)%		(9.12)%		(8.27)%		(51.13)%		(51.19)%		(47.65)%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	930.70	$	2.19	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Homebuilding	64.73	%
Building Products	11.48
Home Improvement Retail	9.94
Home Furnishings	4.96
Trading Companies & Distributors	2.82
Specialty Chemicals	2.82
Construction Materials	1.79
Forest Products	1.46
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

PulteGroup Inc.	10.33	%
Lennar Corp. Class A	9.89
D.R. Horton Inc.	9.06
Toll Brothers Inc.	8.54
NVR Inc.	6.93
Home Depot Inc. (The)	4.57
Ryland Group Inc. (The)	3.75
Lowe’s Companies Inc.	3.71
Meritage Homes Corp.	3.21
KB Home	2.93
TOTAL	62.92	%

8 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. INSURANCE ETF

Performance as of October 31, 2013

The iShares U.S. Insurance ETF (the “Fund”), formerly the iShares Dow Jones U.S. Insurance Index Fund, seeks to track the investment results of an index composed of U.S. equities in the insurance sector, as represented by the Dow Jones U.S. Select Insurance Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 15.43%, net of fees, while the total return for the Index was 15.70%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		37.61%		37.59%		38.30%		37.61%		37.59%		38.30%
5 Years		16.66%		16.62%		17.25%		116.08%		115.70%		121.61%
Since Inception		0.22%		0.23%		0.68%		1.69%		1.72%		5.19%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,154.30	$	2.44	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Property & Casualty Insurance	40.68	%
Life & Health Insurance	32.07
Multi-line Insurance	23.07
Insurance Brokers	2.29
Reinsurance	1.42
Other Diversified Financial Services	0.47
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

American International Group Inc.	12.22	%
MetLife Inc.	8.74
Prudential Financial Inc.	6.52
ACE Ltd.	5.70
Travelers Companies Inc. (The)	5.65
Aflac Inc.	5.35
Allstate Corp. (The)	4.44
Chubb Corp. (The)	4.14
Hartford Financial Services Group Inc. (The)	2.92
Loews Corp.	2.82
TOTAL	58.50	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® U.S. MEDICAL DEVICES ETF

Performance as of October 31, 2013

The iShares U.S. Medical Devices ETF (the “Fund”), formerly the iShares Dow Jones U.S. Medical Devices Index Fund, seeks to track the investment results of an index composed of U.S. equities in the medical devices sector, as represented by the Dow Jones U.S. Select Medical Equipment Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 18.18%, net of fees, while the total return for the Index was 18.35%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		35.30%		35.37%		35.80%		35.30%		35.37%		35.80%
5 Years		14.89%		14.85%		15.41%		100.22%		99.80%		104.70%
Since Inception		8.40%		8.41%		8.93%		83.21%		83.31%		89.94%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,181.80	$	2.47	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Health Care Equipment	80.17	%
Life Sciences Tools & Services	15.83
Biotechnology	1.93
Health Care Supplies	1.16
Health Care Technology	0.91
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

Medtronic Inc.	10.19	%
Thermo Fisher Scientific Inc.	7.90
Covidien PLC	7.01
Stryker Corp.	5.98
St. Jude Medical Inc.	5.14
Zimmer Holdings Inc.	4.83
Boston Scientific Corp.	4.80
Intuitive Surgical Inc.	4.64
CareFusion Corp.	3.44
Waters Corp.	3.40
TOTAL	57.33	%

10 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. OIL & GAS EXPLORATION & PRODUCTION ETF

Performance as of October 31, 2013

The iShares U.S. Oil & Gas Exploration & Production ETF (the “Fund”), formerly the iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund, seeks to track the investment results of an index composed of U.S. equities in the oil and gas exploration and production sector, as represented by the Dow Jones U.S. Select Oil Exploration & Production Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 17.33%, net of fees, while the total return for the Index was 17.62%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		34.42%		34.39%		35.06%		34.42%		34.39%		35.06%
5 Years		14.39%		14.94%		14.92%		95.86%		100.65%		100.42%
Since Inception		7.27%		7.27%		7.72%		69.33%		69.37%		74.69%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,173.30	$	2.47	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Oil & Gas Exploration & Production	82.12	%
Oil & Gas Refining & Marketing	16.16
Oil & Gas Storage & Transportation	1.72
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

ConocoPhillips	13.89	%
EOG Resources Inc.	7.53
Anadarko Petroleum Corp.	7.42
Phillips 66	6.10
Apache Corp.	5.56
Pioneer Natural Resources Co.	4.40
Noble Energy Inc.	4.17
Marathon Oil Corp.	3.88
Devon Energy Corp.	3.74
Marathon Petroleum Corp.	3.48
TOTAL	60.17	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® U.S. OIL EQUIPMENT & SERVICES ETF

Performance as of October 31, 2013

The iShares U.S. Oil Equipment & Services ETF (the “Fund”), formerly the iShares Dow Jones U.S. Oil Equipment & Services Index Fund, seeks to track the investment results of an index composed of U.S. equities in the oil equipment and services sector, as represented by the Dow Jones U.S. Select Oil Equipment & Services Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 17.54%, net of fees, while the total return for the Index was 17.81%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		33.38%		33.37%		33.98%		33.38%		33.37%		33.98%
5 Years		14.74%		14.75%		15.11%		98.90%		98.93%		102.10%
Since Inception		3.95%		3.95%		4.31%		33.73%		33.75%		37.20%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,175.40	$	2.47	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Oil & Gas Equipment & Services	77.63	%
Oil & Gas Drilling	20.62
Industrial Machinery	1.03
Oil & Gas Exploration & Production	0.72
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

Schlumberger Ltd.	21.95	%
Halliburton Co.	9.81
National Oilwell Varco Inc.	7.87
Baker Hughes Inc.	6.25
Transocean Ltd.	4.07
Ensco PLC Class A	3.53
Cameron International Corp.	3.49
Weatherford International Ltd.	3.36
FMC Technologies Inc.	3.15
Noble Corp.	2.62
TOTAL	66.10	%

12 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® U.S. PHARMACEUTICALS ETF

Performance as of October 31, 2013

The iShares U.S. Pharmaceuticals ETF (the “Fund”), formerly the iShares Dow Jones U.S. Pharmaceuticals Index Fund, seeks to track the investment results of an index composed of U.S. equities in the pharmaceuticals sector, as represented by the Dow Jones U.S. Select Pharmaceuticals Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 10.19%, net of fees, while the total return for the Index was 10.42%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		27.16%		27.17%		27.61%		27.16%		27.17%		27.61%
5 Years		22.43%		22.35%		22.97%		175.09%		174.12%		181.22%
Since Inception		12.50%		12.51%		13.04%		142.09%		142.20%		150.74%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,101.90	$	2.38	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Pharmaceuticals	84.32	%
Biotechnology	8.77
Health Care Equipment	5.78
Personal Products	1.13
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

Johnson & Johnson	11.04	%
Pfizer Inc.	10.03
Merck & Co. Inc.	7.68
Bristol-Myers Squibb Co.	7.56
Abbott Laboratories	5.79
Actavis PLC	5.18
Eli Lilly and Co.	5.11
Allergan Inc.	4.23
Zoetis Inc.	3.30
Perrigo Co.	3.17
TOTAL	63.09	%

FUND PERFORMANCE OVERVIEWS 13

Fund Performance Overview

iSHARES^® U.S. REGIONAL BANKS ETF

Performance as of October 31, 2013

The iShares U.S. Regional Banks ETF (the “Fund”), formerly the iShares Dow Jones U.S. Regional Banks Index Fund, seeks to track the investment results of an index composed of U.S. equities in the regional banks sector, as represented by the Dow Jones U.S. Select Regional Banks Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 16.37%, net of fees, while the total return for the Index was 16.63%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		28.03%		28.03%		28.58%		28.03%		28.03%		28.58%
5 Years		3.26%		3.28%		3.68%		17.39%		17.51%		19.79%
Since Inception		(3.73)%		(3.73)%		(3.36)%		(24.83)%		(24.84)%		(22.61)%

The inception date of the Fund was 5/1/06. The first day of secondary market trading was 5/5/06.

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.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,163.70	$	2.45	$	1,000.00	$	1,022.90	$	2.29		0.45%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 15 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of Total Investments*

Regional Banks	72.41	%
Diversified Banks	21.84
Thrifts & Mortgage Finance	5.75
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of Total Investments*

U.S. Bancorp	19.57	%
PNC Financial Services Group Inc. (The)	11.13
BB&T Corp.	6.82
SunTrust Banks Inc.	5.17
Fifth Third Bancorp	4.82
M&T Bank Corp.	4.18
Regions Financial Corp.	3.84
KeyCorp	3.25
Comerica Inc.	2.28
Huntington Bancshares Inc.	2.08
TOTAL	63.14	%

14 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2013 and held through October 31, 2013, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

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

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

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

ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES 15

Schedule of Investments (Unaudited)

iSHARES^® U.S. AEROSPACE & DEFENSE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.82%
AEROSPACE & DEFENSE — 92.62%
AAR Corp.		87,196	$	2,553,099
AeroVironment Inc.a,b		65,636		1,779,392
Alliant Techsystems Inc.		41,571		4,525,835
Astronics Corp.a		36,788		1,804,819
Astronics Corp. Class Ba		6,614		319,390
B/E Aerospace Inc.a		83,840		6,804,454
Boeing Co. (The)		166,782		21,765,051
Cubic Corp.		45,324		2,379,510
Curtiss-Wright Corp.		72,125		3,590,383
Engility Holdings Inc.a,b		50,300		1,557,791
Esterline Technologies Corp.a		44,781		3,589,645
Exelis Inc.		250,738		4,134,670
GenCorp Inc.a,b		141,305		2,373,924
General Dynamics Corp.		135,719		11,757,337
HEICO Corp.		75,378		4,038,753
Hexcel Corp.a		118,856		5,028,797
Huntington Ingalls Industries Inc.		62,133		4,445,616
L-3 Communications Holdings Inc.		70,772		7,109,047
Lockheed Martin Corp.		101,606		13,548,144
Moog Inc. Class Aa		65,565		3,916,197
Northrop Grumman Corp.		107,432		11,550,014
Orbital Sciences Corp.a,b		129,339		2,983,851
Precision Castparts Corp.		55,500		14,066,475
Raytheon Co.		141,286		11,637,728
Rockwell Collins Inc.		99,196		6,926,857
Spirit AeroSystems Holdings Inc. Class Aa		147,619		3,939,951
Taser International Inc.a,b		144,537		2,568,423
Teledyne Technologies Inc.a		48,695		4,325,090
Textron Inc.		224,027		6,449,737
TransDigm Group Inc.		42,613		6,196,356
Triumph Group Inc.		60,298		4,320,352
United Technologies Corp.		185,524		19,711,925
				201,698,613
AIRPORT SERVICES — 0.85%
Wesco Aircraft Holdings Inc.a		101,622		1,861,715
				1,861,715
ELECTRONIC EQUIPMENT & INSTRUMENTS — 2.00%
FLIR Systems Inc.		152,700		4,348,896
				4,348,896

Security	Shares		Value
INDUSTRIAL MACHINERY — 1.40%
RBC Bearings Inc.a,b		44,237	$	3,043,063
				3,043,063
IT CONSULTING & OTHER SERVICES — 0.84%
ManTech International Corp. Class Ab		65,259		1,823,337
				1,823,337
LEISURE PRODUCTS — 2.11%
Smith & Wesson Holding Corp.a,b		174,448		1,880,550
Sturm, Ruger & Co. Inc.b		41,447		2,711,048
				4,591,598
TOTAL COMMON STOCKS
(Cost: $187,289,595)				217,367,222
SHORT-TERM INVESTMENTS — 6.49%
MONEY MARKET FUNDS — 6.49%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		13,044,141		13,044,141
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		758,086		758,086
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		334,068		334,068
				14,136,295
TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,136,295)				14,136,295
TOTAL INVESTMENTS IN SECURITIES — 106.31%
(Cost: $201,425,890)				231,503,517
Other Assets, Less Liabilities — (6.31)%				(13,746,980	)
NET ASSETS — 100.00%			$	217,756,537

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

16 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® U.S. BROKER-DEALERS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.98%
ASSET MANAGEMENT & CUSTODY BANKS — 6.46%
Ameriprise Financial Inc.		96,309	$	9,682,907
				9,682,907
INVESTMENT BANKING & BROKERAGE — 59.17%
BGC Partners Inc. Class A		731,871		3,893,554
Charles Schwab Corp. (The)		427,476		9,682,331
E*TRADE Financial Corp.a		386,636		6,538,015
FXCM Inc. Class A		210,216		3,445,440
Goldman Sachs Group Inc. (The)		70,449		11,332,426
Greenhill & Co. Inc.		99,185		5,088,191
Investment Technology Group Inc.a		247,673		3,967,721
KCG Holdings Inc. Class Aa		512,045		4,475,273
LPL Financial Holdings Inc.		153,964		6,272,493
Morgan Stanley		367,900		10,569,767
Piper Jaffray Companies Inc.a,b		113,272		4,065,332
Raymond James Financial Inc.		154,201		7,039,276
Stifel Financial Corp.a,b		132,739		5,435,662
TD Ameritrade Holding Corp.		254,537		6,938,679
				88,744,160
SPECIALIZED FINANCE — 34.35%
CBOE Holdings Inc.		135,855		6,588,967
CME Group Inc.		127,137		9,434,837
Interactive Brokers Group Inc. Class A		257,824		5,318,909
IntercontinentalExchange Inc.a,b		45,094		8,690,967
MarketAxess Holdings Inc.		98,837		6,447,138
NASDAQ OMX Group Inc. (The)		197,511		6,997,815
NYSE Euronext Inc.		182,863		8,049,629
				51,528,262
TOTAL COMMON STOCKS
(Cost: $133,146,947)				149,955,329
SHORT-TERM INVESTMENTS — 10.79%
MONEY MARKET FUNDS — 10.79%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		15,238,465		15,238,465
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		885,613		885,613

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		69,473	$	69,473
				16,193,551
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,193,551)				16,193,551
TOTAL INVESTMENTS IN SECURITIES — 110.77%
(Cost: $149,340,498)				166,148,880
Other Assets, Less Liabilities — (10.77)%				(16,158,843	)
NET ASSETS — 100.00%			$	149,990,037

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments(Unaudited)

iSHARES^® U.S. HEALTHCARE PROVIDERS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.94%
DIVERSIFIED SUPPORT SERVICES — 1.08%
Healthcare Services Group Inc.		148,993	$	4,080,918
				4,080,918
HEALTH CARE SERVICES — 28.66%
Accretive Health Inc.a,b		163,456		1,350,147
Air Methods Corp.b		79,232		3,464,023
Amedisys Inc.a,b		94,265		1,534,634
Bio-Reference Laboratories Inc.a,b		67,017		2,172,021
BioScrip Inc.a		168,671		1,182,384
DaVita HealthCare Partners Inc.a		234,120		13,159,885
Envision Healthcare Holdings Inc.a		99,227		2,882,544
Express Scripts Holding Co.a		638,526		39,920,646
Healthways Inc.a,b		93,145		896,986
IPC The Hospitalist Co. Inc.a,b		42,981		2,354,929
Laboratory Corp. of America Holdingsa,b		122,265		12,336,538
MEDNAX Inc.a		81,035		8,834,436
Quest Diagnostics Inc.		203,989		12,220,981
Team Health Holdings Inc.a		132,348		5,749,197
				108,059,351
HEALTH CARE DISTRIBUTORS — 0.38%
PharMerica Corp.a,b		96,223		1,420,251
				1,420,251
HEALTH CARE FACILITIES — 22.28%
Acadia Healthcare Co. Inc.a,b		79,920		3,465,331
AmSurg Corp.a,b		75,668		3,245,401
Brookdale Senior Living Inc.a		193,284		5,234,131
Capital Senior Living Corp.a		78,138		1,733,101
Community Health Systems Inc.		165,975		7,241,489
Emeritus Corp.a		107,626		2,062,114
Ensign Group Inc. (The)		51,942		2,211,690
Hanger Inc.a,b		84,409		3,097,810
HCA Holdings Inc.		348,431		16,425,037
Health Management Associates Inc. Class Aa		468,314		6,003,786
HealthSouth Corp.		162,619		5,709,553
Kindred Healthcare Inc.		146,433		2,032,490
LifePoint Hospitals Inc.a		95,387		4,925,785
Select Medical Holdings Corp.		180,883		1,533,888
Tenet Healthcare Corp.a		174,667		8,242,536
Universal Health Services Inc. Class B		134,888		10,866,577
				84,030,719

Security	Shares		Value
HEALTH CARE TECHNOLOGY — 1.52%
HealthStream Inc.a,b		54,542	$	1,948,240
HMS Holdings Corp.a,b		178,726		3,776,481
				5,724,721
LIFE SCIENCES TOOLS & SERVICES — 3.45%
Covance Inc.a		91,214		8,141,761
PAREXEL International Corp.a,b		106,415		4,864,230
				13,005,991
MANAGED HEALTH CARE — 42.57%
Aetna Inc.		377,400		23,662,980
Centene Corp.a		98,680		5,541,869
Cigna Corp.		290,675		22,376,162
Health Net Inc.a		152,998		4,651,139
Humana Inc.		182,416		16,809,634
Magellan Health Services Inc.a		59,147		3,471,929
Molina Healthcare Inc.a,b		69,699		2,205,276
Triple-S Management Corp. Class Ba,b		71,629		1,275,713
UnitedHealth Group Inc.		719,000		49,078,940
Universal American Corp.		124,358		922,736
WellCare Health Plans Inc.a		80,856		5,391,478
WellPoint Inc.		296,262		25,123,018
				160,510,874
TOTAL COMMON STOCKS
(Cost: $343,302,889)				376,832,825
SHORT-TERM INVESTMENTS — 9.46%
MONEY MARKET FUNDS — 9.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		33,362,878		33,362,878
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		1,938,949		1,938,949
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		353,152		353,152
				35,654,979
TOTAL SHORT-TERM INVESTMENTS
(Cost: $35,654,979)				35,654,979

18 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. HEALTHCARE PROVIDERS ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 109.40%
(Cost: $378,957,868)	$	412,487,804
Other Assets, Less Liabilities — (9.40)%		(35,438,160	)
NET ASSETS — 100.00%	$	377,049,644

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 19

Schedule of Investments(Unaudited)

iSHARES^® U.S. HOME CONSTRUCTION ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.98%
BUILDING PRODUCTS — 11.47%
Fortune Brands Home & Security Inc.		834,381	$	35,945,133
Lennox International Inc.		369,185		28,818,581
Masco Corp.		1,674,876		35,390,130
Owens Corninga		747,414		26,854,585
Quanex Building Products Corp.		866,886		15,413,233
Universal Forest Products Inc.		424,981		22,489,995
USG Corp.a,b		877,850		23,974,084
				188,885,741
CONSTRUCTION MATERIALS — 1.79%
Eagle Materials Inc.		393,144		29,489,731
				29,489,731
FOREST PRODUCTS — 1.46%
Louisiana-Pacific Corp.a		1,416,030		24,086,670
				24,086,670
HOME FURNISHINGS — 4.96%
Ethan Allen Interiors Inc.b		599,582		15,972,865
Leggett & Platt Inc.b		966,293		28,737,554
Mohawk Industries Inc.a		279,227		36,975,239
				81,685,658
HOME IMPROVEMENT RETAIL — 9.94%
Home Depot Inc. (The)		964,798		75,148,116
Lowe’s Companies Inc.		1,227,570		61,108,435
Lumber Liquidators Holdings Inc.a,b		238,931		27,283,531
				163,540,082
HOMEBUILDING — 64.72%
Cavco Industries Inc.a,b		269,458		15,782,155
D.R. Horton Inc.		7,873,955		149,211,447
Hovnanian Enterprises Inc. Class Aa,b		4,746,689		24,018,246
KB Homeb		2,838,416		48,167,920
Lennar Corp. Class Ab		4,579,474		162,800,301
M.D.C. Holdings Inc.		1,373,669		40,097,398
M/I Homes Inc.a,b		976,056		19,979,866
Meritage Homes Corp.a,b		1,163,587		52,815,214
NVR Inc.a		124,412		114,125,616
PulteGroup Inc.		9,631,573		169,997,264
Ryland Group Inc. (The)b		1,536,521		61,768,144
Standard-Pacific Corp.a,b		5,260,182		41,713,243

Security	Shares		Value
Taylor Morrison Home Corp. Class Aa		1,098,806	$	24,437,445
Toll Brothers Inc.a		4,275,760		140,586,989
				1,065,501,248
SPECIALTY CHEMICALS — 2.82%
Sherwin-Williams Co. (The)		246,744		46,387,872
				46,387,872
TRADING COMPANIES & DISTRIBUTORS — 2.82%
Beacon Roofing Supply Inc.a,b		610,581		21,193,266
Watsco Inc.		264,692		25,222,501
				46,415,767
TOTAL COMMON STOCKS
(Cost: $1,696,008,101)				1,645,992,769
SHORT-TERM INVESTMENTS — 8.41%
MONEY MARKET FUNDS — 8.41%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		129,654,531		129,654,531
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		7,535,128		7,535,128
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		1,276,219		1,276,219
				138,465,878
TOTAL SHORT-TERM INVESTMENTS
(Cost: $138,465,878)				138,465,878
TOTAL INVESTMENTS IN SECURITIES — 108.39%
(Cost: $1,834,473,979)				1,784,458,647
Other Assets, Less Liabilities — (8.39)%				(138,194,470	)
NET ASSETS — 100.00%			$	1,646,264,177

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

20 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments(Unaudited)

iSHARES^® U.S. INSURANCE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.94%
INSURANCE BROKERS — 2.29%
Arthur J. Gallagher & Co.		42,248	$	2,004,668
Brown & Brown Inc.		40,823		1,303,478
eHealth Inc.a,b		7,724		329,197
				3,637,343
LIFE & HEALTH INSURANCE — 32.05%
Aflac Inc.		130,637		8,488,792
American Equity Investment Life Holding Co.		24,592		512,497
CNO Financial Group Inc.		77,584		1,208,759
Lincoln National Corp.		81,342		3,693,740
MetLife Inc.		293,119		13,867,460
National Western Life Insurance Co. Class A		964		200,512
Primerica Inc.		19,881		853,889
Principal Financial Group Inc.		84,143		3,993,427
Protective Life Corp.		27,220		1,254,298
Prudential Financial Inc.		127,130		10,347,111
StanCorp Financial Group Inc.		15,938		938,748
Symetra Financial Corp.		35,803		670,590
Torchmark Corp.		29,897		2,178,296
Unum Group		84,222		2,673,206
				50,881,325
MULTI-LINE INSURANCE — 23.06%
American Financial Group Inc.		24,465		1,376,401
American International Group Inc.		375,357		19,387,189
American National Insurance Co.		1,954		197,491
Assurant Inc.		25,531		1,493,053
Genworth Financial Inc. Class Aa		161,855		2,351,753
Hartford Financial Services Group Inc. (The)		137,261		4,625,696
HCC Insurance Holdings Inc.		33,977		1,551,050
Horace Mann Educators Corp.		15,515		429,765
Kemper Corp.		19,340		715,967
Loews Corp.		92,546		4,470,897
				36,599,262
OTHER DIVERSIFIED FINANCIAL SERVICES — 0.47%
ING U.S. Inc.		24,178		750,002
				750,002
PROPERTY & CASUALTY INSURANCE — 40.65%
ACE Ltd.		94,810		9,048,666
Allied World Assurance Co. Holdings Ltd.		12,138		1,314,424

Security	Shares		Value
Allstate Corp. (The)		132,774	$	7,044,988
Ambac Financial Group Inc.a		17,402		351,346
Amerisafe Inc.		7,644		294,294
AmTrust Financial Services Inc.b		11,876		455,563
Arch Capital Group Ltd.a,b		38,710		2,243,632
Argo Group International Holdings Ltd.		10,512		441,294
Assured Guaranty Ltd.		58,931		1,208,086
Axis Capital Holdings Ltd.b		35,863		1,700,623
Chubb Corp. (The)		71,315		6,566,685
Cincinnati Financial Corp.		47,943		2,397,150
CNA Financial Corp.		10,562		428,712
Employers Holdings Inc.		12,273		369,049
Erie Indemnity Co. Class A		9,183		659,523
First American Financial Corp.		38,540		996,644
Hanover Insurance Group Inc. (The)		15,866		928,796
Hilltop Holdings Inc.a,b		24,884		431,489
Infinity Property and Casualty Corp.		4,648		318,760
Markel Corp.a,b		4,626		2,450,253
MBIA Inc.a		53,234		605,271
Meadowbrook Insurance Group Inc.		20,924		138,935
Mercury General Corp.		9,176		427,235
National Interstate Corp.		7,409		193,597
Navigators Group Inc. (The)a,b		4,471		251,449
Old Republic International Corp.		83,821		1,407,355
OneBeacon Insurance Group Ltd. Class Ab		9,832		156,919
ProAssurance Corp.		22,141		1,003,430
Progressive Corp. (The)		167,373		4,346,677
RLI Corp.		6,757		638,401
Safety Insurance Group Inc.		5,383		294,396
Selective Insurance Group Inc.		21,164		555,978
Tower Group International Ltd.		16,523		59,979
Travelers Companies Inc. (The)		103,830		8,960,529
United Fire Group Inc.		8,873		281,274
W.R. Berkley Corp.		37,515		1,647,284
White Mountains Insurance Group Ltd.		1,947		1,137,184
XL Group PLC		90,967		2,780,861
				64,536,731
REINSURANCE — 1.42%
Alleghany Corp.a		5,544		2,247,648
				2,247,648
TOTAL COMMON STOCKS
(Cost: $129,127,325)				158,652,311

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. INSURANCE ETF

October 31, 2013

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.42%
MONEY MARKET FUNDS — 1.42%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		2,025,983	$	2,025,983
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		117,744		117,744
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		113,428		113,428
				2,257,155
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,257,155)				2,257,155
TOTAL INVESTMENTS IN SECURITIES — 101.36%
(Cost: $131,384,480)				160,909,466
Other Assets, Less Liabilities — (1.36)%				(2,169,814	)
NET ASSETS — 100.00%			$	158,739,652

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

22 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments(Unaudited)

iSHARES^® U.S. MEDICAL DEVICES ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.89%
BIOTECHNOLOGY — 1.93%
Cepheid Inc.a,b		228,510	$	9,304,927
				9,304,927
HEALTH CARE EQUIPMENT — 80.07%
ABIOMED Inc.a,b		192,990		4,627,900
Accuray Inc.a,b		458,747		3,096,542
Analogic Corp.		62,780		5,790,199
ArthroCare Corp.a		144,358		5,404,763
Boston Scientific Corp.a		1,977,526		23,117,279
Cantel Medical Corp.		175,642		6,165,034
CareFusion Corp.a		427,164		16,561,148
Covidien PLC		526,580		33,759,044
Globus Medical Inc. Class Aa		283,505		5,443,296
HeartWare International Inc.a,b		70,463		5,112,795
Hill-Rom Holdings Inc.		216,206		8,927,146
Insulet Corp.a,b		205,937		8,035,662
Integra LifeSciences Holdings Corp.a,b		111,632		5,110,513
Intuitive Surgical Inc.a		60,122		22,335,323
Invacare Corp.		200,761		4,310,339
MAKO Surgical Corp.a,b		250,890		7,479,031
Masimo Corp.		231,056		5,919,655
Medtronic Inc.		854,987		49,076,254
Natus Medical Inc.a,b		208,119		4,106,188
NuVasive Inc.a,b		217,120		6,900,074
NxStage Medical Inc.a,b		326,396		4,331,275
ResMed Inc.b		292,697		15,144,143
Sirona Dental Systems Inc.a		160,633		11,605,734
St. Jude Medical Inc.		431,682		24,774,230
Steris Corp.		202,246		9,139,497
Stryker Corp.		390,181		28,818,769
Symmetry Medical Inc.a		307,231		2,488,571
Thoratec Corp.a		211,245		9,123,671
Varian Medical Systems Inc.a		213,941		15,527,838
Volcano Corp.a,b		251,627		4,823,689
Wright Medical Group Inc.a,b		215,892		5,865,786
Zimmer Holdings Inc.		266,050		23,271,393
				386,192,781
HEALTH CARE SUPPLIES — 1.16%
Endologix Inc.a,b		309,930		5,600,435
				5,600,435

Security	Shares		Value
HEALTH CARE TECHNOLOGY — 0.91%
Omnicell Inc.a,b		189,987	$	4,383,000
				4,383,000
LIFE SCIENCES TOOLS & SERVICES — 15.82%
Bio-Rad Laboratories Inc. Class Aa		70,371		8,692,226
Bruker Corp.a		387,481		7,923,987
Fluidigm Corp.a,b		165,230		5,204,745
Thermo Fisher Scientific Inc.		389,378		38,073,381
Waters Corp.a		162,307		16,380,022
				76,274,361
TOTAL COMMON STOCKS
(Cost: $426,962,313)				481,755,504
SHORT-TERM INVESTMENTS — 11.36%
MONEY MARKET FUNDS — 11.36%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		51,295,734		51,295,734
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		2,981,153		2,981,153
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		540,641		540,641
				54,817,528
TOTAL SHORT-TERM INVESTMENTS
(Cost: $54,817,528)				54,817,528
TOTAL INVESTMENTS IN SECURITIES — 111.25%
(Cost: $481,779,841)				536,573,032
Other Assets, Less Liabilities — (11.25)%				(54,267,858	)
NET ASSETS — 100.00%			$	482,305,174

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited)

iSHARES^® U.S. OIL & GAS EXPLORATION & PRODUCTION ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.73%
OIL & GAS EXPLORATION & PRODUCTION — 81.90%
Anadarko Petroleum Corp.		334,438	$	31,868,597
Apache Corp.		268,653		23,856,386
Approach Resources Inc.a,b		23,260		654,769
Berry Petroleum Co. Class A		32,625		1,557,844
Bill Barrett Corp.a,b		32,394		896,342
Bonanza Creek Energy Inc.a,b		19,017		961,119
Cabot Oil & Gas Corp.		279,894		9,885,856
Carrizo Oil & Gas Inc.a,b		24,719		1,083,681
Chesapeake Energy Corp.		337,022		9,423,135
Cimarex Energy Co.		57,519		6,059,627
Cobalt International Energy Inc.b		196,874		4,569,446
Comstock Resources Inc.		30,020		513,642
Concho Resources Inc.a,b		69,669		7,706,088
ConocoPhillips		813,631		59,639,152
Contango Oil & Gas Co.		10,151		434,970
Continental Resources Inc.b		28,422		3,237,266
Denbury Resources Inc.b		248,211		4,713,527
Devon Energy Corp.		253,895		16,051,242
Energen Corp.		48,075		3,765,234
Energy XXI (Bermuda) Ltd.		50,497		1,467,443
EOG Resources Inc.		181,234		32,332,146
EPL Oil & Gas Inc.a,b		22,683		723,134
EQT Corp.		100,176		8,576,067
EXCO Resources Inc.		89,476		484,065
Forest Oil Corp.b		80,248		380,375
Goodrich Petroleum Corp.a,b		22,181		518,814
Gulfport Energy Corp.b		51,620		3,029,578
Halcon Resources Corp.a,b		167,696		868,665
Kodiak Oil & Gas Corp.b		176,635		2,290,956
Kosmos Energy Ltd.b		67,210		716,459
Laredo Petroleum Holdings Inc.b		38,879		1,235,186
Magnum Hunter Resources Corp.a,b		106,895		762,161
Marathon Oil Corp.		472,129		16,647,268
Matador Resources Co.a,b		35,414		651,972
Murphy Oil Corp.		116,863		7,049,176
Newfield Exploration Co.b		90,311		2,749,970
Noble Energy Inc.		238,930		17,903,025
Northern Oil and Gas Inc.a,b		38,868		638,601
Oasis Petroleum Inc.b		59,155		3,150,004
PDC Energy Inc.a,b		23,731		1,609,199
Pioneer Natural Resources Co.		92,172		18,874,982
QEP Resources Inc.		119,344		3,945,513

Security	Shares		Value
Range Resources Corp.		108,687	$	8,228,693
Resolute Energy Corp.a,b		41,083		385,359
Rex Energy Corp.a,b		28,450		611,675
Rosetta Resources Inc.b		40,659		2,437,100
Sanchez Energy Corp.a,b		26,064		743,085
SandRidge Energy Inc.a,b		238,561		1,512,477
SM Energy Co.		44,552		3,947,753
Southwestern Energy Co.b		233,828		8,703,078
Stone Energy Corp.a,b		33,268		1,159,722
Swift Energy Co.a,b		28,984		397,660
Synergy Resources Corp.b		38,218		395,938
Ultra Petroleum Corp.a,b		101,772		1,868,534
W&T Offshore Inc.		23,132		441,590
Whiting Petroleum Corp.b		79,381		5,309,795
WPX Energy Inc.b		133,511		2,955,934
				352,581,075
OIL & GAS REFINING & MARKETING — 16.12%
CVR Energy Inc.		10,447		414,955
Delek US Holdings Inc.		24,649		629,782
HollyFrontier Corp.		132,906		6,121,650
Marathon Petroleum Corp.		208,283		14,925,560
PBF Energy Inc.		26,245		691,031
Phillips 66		406,504		26,191,053
Tesoro Corp.		89,906		4,395,504
Valero Energy Corp.		360,676		14,849,031
Western Refining Inc.		35,822		1,155,976
				69,374,542
OIL & GAS STORAGE & TRANSPORTATION — 1.71%
Cheniere Energy Inc.b		147,622		5,875,356
Targa Resources Corp.		19,243		1,492,487
				7,367,843
TOTAL COMMON STOCKS
(Cost: $415,473,574)				429,323,460
WARRANTS — 0.00%
OIL & GAS EXPLORATION & PRODUCTION — 0.00%
Magnum Hunter Resources Corp. (Expires 04/15/16)a,b		12,939		—
				—
TOTAL WARRANTS
(Cost: $0)				—

24 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. OIL & GAS EXPLORATION & PRODUCTION ETF

October 31, 2013

Security	Shares		Value
SHORT-TERM INVESTMENTS — 4.53%
MONEY MARKET FUNDS — 4.53%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		17,790,606	$	17,790,606
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		1,033,936		1,033,936
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		652,731		652,731
				19,477,273
TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,477,273)				19,477,273
TOTAL INVESTMENTS IN SECURITIES — 104.26%
(Cost: $434,950,847)				448,800,733
Other Assets, Less Liabilities — (4.26)%				(18,323,254	)
NET ASSETS — 100.00%			$	430,477,479

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Non-income earning security.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 25

Schedule of Investments(Unaudited)

iSHARES^® U.S. OIL EQUIPMENT & SERVICES ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.87%
INDUSTRIAL MACHINERY — 1.03%
Chart Industries Inc.a,b		47,235	$	5,076,345
				5,076,345
OIL & GAS DRILLING — 20.60%
Atwood Oceanics Inc.a		91,225		4,846,784
Diamond Offshore Drilling Inc.b		105,304		6,521,477
Ensco PLC Class A		301,448		17,378,477
Helmerich & Payne Inc.		150,596		11,678,720
Hercules Offshore Inc.a,b		295,301		2,008,047
Nabors Industries Ltd.		396,893		6,937,690
Noble Corp.		341,048		12,857,509
Parker Drilling Co.a,b		240,698		1,733,026
Patterson-UTI Energy Inc.		236,073		5,727,131
Pioneer Energy Services Corp.a,b		132,542		1,113,353
Rowan Companies PLC Class Aa		187,033		6,748,151
Transocean Ltd.		425,536		20,029,979
Unit Corp.a		74,249		3,817,141
				101,397,485
OIL & GAS EQUIPMENT & SERVICES — 77.52%
Baker Hughes Inc.		528,909		30,724,324
Basic Energy Services Inc.a,b		58,619		859,941
Bristow Group Inc.		59,837		4,815,083
C&J Energy Services Inc.a,b		85,843		1,977,823
Cameron International Corp.a		313,162		17,180,067
CARBO Ceramics Inc.b		34,401		4,311,821
Core Laboratories NV		64,395		12,056,032
Dresser-Rand Group Inc.a		114,603		6,964,424
Dril-Quip Inc.a		61,522		7,223,913
ERA Group Inc.a,b		39,468		1,247,189
Exterran Holdings Inc.a,b		102,114		2,915,355
FMC Technologies Inc.a		306,365		15,486,751
Forum Energy Technologies Inc.a,b		83,211		2,434,754
Geospace Technologies Corp.a,b		24,534		2,390,102
GulfMark Offshore Inc. Class A		45,386		2,259,315
Halliburton Co.		909,753		48,244,202
Helix Energy Solutions Group Inc.a,b		161,482		3,820,664
Hornbeck Offshore Services Inc.a,b		55,973		3,093,628
ION Geophysical Corp.a,b		250,311		1,161,443
Key Energy Services Inc.a,b		244,831		1,914,578
Matrix Service Co.a		55,520		1,154,261
McDermott International Inc.a,b		409,897		2,897,972
National Oilwell Varco Inc.		476,513		38,683,325
Newpark Resources Inc.a,b		164,898		2,102,449

Security	Shares		Value
Oceaneering International Inc.		148,118	$	12,720,374
Oil States International Inc.a		81,554		8,859,211
RPC Inc.b		114,778		2,105,029
Schlumberger Ltd.		1,151,388		107,908,083
SEACOR Holdings Inc.		32,905		3,218,109
Superior Energy Services Inc.a		244,442		6,558,379
Tesco Corp.a		65,279		1,121,493
TETRA Technologies Inc.a,b		148,982		1,932,297
Tidewater Inc.		80,022		4,818,925
Weatherford International Ltd.a		1,004,925		16,520,967
				381,682,283
OIL & GAS EXPLORATION & PRODUCTION — 0.72%
Diamondback Energy Inc.a		68,668		3,546,702
				3,546,702
TOTAL COMMON STOCKS
(Cost: $454,495,844)				491,702,815
SHORT-TERM INVESTMENTS — 6.05%
MONEY MARKET FUNDS — 6.05%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		27,484,895		27,484,895
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		1,597,339		1,597,339
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		698,286		698,286
				29,780,520
TOTAL SHORT-TERM INVESTMENTS
(Cost: $29,780,520)				29,780,520
TOTAL INVESTMENTS IN SECURITIES — 105.92%
(Cost: $484,276,364)				521,483,335
Other Assets, Less Liabilities — (5.92)%				(29,140,839	)
NET ASSETS — 100.00%			$	492,342,496

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

26 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments(Unaudited)

iSHARES^® U.S. PHARMACEUTICALS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.88%
BIOTECHNOLOGY — 8.76%
Aegerion Pharmaceuticals Inc.a,b		71,630	$	5,932,396
Alkermes PLCa		266,514		9,378,628
AMAG Pharmaceuticals Inc.a,b		135,035		3,643,244
ARIAD Pharmaceuticals Inc.a,b		274,623		604,171
Infinity Pharmaceuticals Inc.a,b		206,838		2,802,655
Ironwood Pharmaceuticals Inc. Class Aa,b		405,857		3,900,286
Rigel Pharmaceuticals Inc.a,b		724,836		2,239,743
Spectrum Pharmaceuticals Inc.b		380,369		3,267,370
TESARO Inc.a,b		90,671		3,490,833
Theravance Inc.a,b		205,351		7,524,061
				42,783,387
HEALTH CARE EQUIPMENT — 5.78%
Abbott Laboratories		772,260		28,226,103
				28,226,103
PERSONAL PRODUCTS — 1.13%
Prestige Brands Holdings Inc.a,b		176,742		5,519,653
				5,519,653
PHARMACEUTICALS — 84.21%
Actavis PLCa		163,654		25,297,635
Akorn Inc.a,b		276,475		5,651,149
Allergan Inc.		227,816		20,642,408
Auxilium Pharmaceuticals Inc.a,b		226,258		3,893,900
AVANIR Pharmaceuticals Inc. Class Aa,b		794,073		3,215,996
Bristol-Myers Squibb Co.		702,756		36,908,745
Eli Lilly and Co.		500,711		24,945,422
Endo Health Solutions Inc.a		217,929		9,530,035
Forest Laboratories Inc.a		297,933		14,011,789
Hospira Inc.a		273,689		11,089,878
Impax Laboratories Inc.a		248,921		5,043,140
Jazz Pharmaceuticals PLCa		106,382		9,653,103
Johnson & Johnson		581,605		53,862,439
Mallinckrodt PLCa		156,444		6,572,213
Medicines Co. (The)a,b		189,662		6,433,335
Merck & Co. Inc.		830,945		37,467,310
Mylan Inc.a		403,805		15,292,095
Pacira Pharmaceuticals Inc.a,b		133,987		6,767,683
Perrigo Co.		112,297		15,484,633
Pfizer Inc.		1,594,724		48,926,132
Questcor Pharmaceuticals Inc.		126,379		7,755,879
Salix Pharmaceuticals Ltd.a		130,068		9,332,379

Security	Shares		Value
Santarus Inc.a,b		237,206	$	5,534,016
ViroPharma Inc.a,b		202,596		7,864,777
VIVUS Inc.a,b		443,125		4,160,944
Zoetis Inc.		508,312		16,093,158
				411,430,193
TOTAL COMMON STOCKS
(Cost: $406,666,867)				487,959,336
SHORT-TERM INVESTMENTS — 12.89%
MONEY MARKET FUNDS — 12.89%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		59,171,971		59,171,971
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		3,438,895		3,438,895
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		345,884		345,884
				62,956,750
TOTAL SHORT-TERM INVESTMENTS
(Cost: $62,956,750)				62,956,750
TOTAL INVESTMENTS IN SECURITIES — 112.77%
(Cost: $469,623,617)				550,916,086
Other Assets, Less Liabilities — (12.77)%				(62,382,122	)
NET ASSETS — 100.00%			$	488,533,964

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments(Unaudited)

iSHARES^® U.S. REGIONAL BANKS ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.85%
DIVERSIFIED BANKS — 21.81%
Comerica Inc.		237,544	$	10,285,655
U.S. Bancorp		2,362,334		88,256,798
				98,542,453
REGIONAL BANKS — 72.30%
Associated Banc-Corp		214,017		3,479,917
BancorpSouth Inc.		108,450		2,396,745
Bank of Hawaii Corp.		57,548		3,336,633
BB&T Corp.		905,269		30,751,988
BOK Financial Corp.		26,729		1,636,617
CapitalSource Inc.		254,188		3,324,779
Cathay General Bancorp		94,983		2,339,431
City National Corp.		60,898		4,391,355
Commerce Bancshares Inc.		99,272		4,567,505
Cullen/Frost Bankers Inc.		67,461		4,775,564
East West Bancorp Inc.		177,130		5,967,510
F.N.B. Corp.		203,730		2,548,662
Fifth Third Bancorp		1,141,866		21,729,710
First Financial Bankshares Inc.		39,276		2,415,867
First Horizon National Corp.		310,108		3,302,650
First Niagara Financial Group Inc.		455,716		5,026,548
First Republic Bank		159,287		8,134,787
FirstMerit Corp.		212,472		4,772,121
Fulton Financial Corp.		250,144		3,054,258
Glacier Bancorp Inc.		95,181		2,629,851
Hancock Holding Co.		105,847		3,469,665
Huntington Bancshares Inc.		1,065,629		9,377,535
IBERIABANK Corp.		38,473		2,247,977
International Bancshares Corp.		74,184		1,695,104
KeyCorp		1,169,561		14,654,599
M&T Bank Corp.a		167,461		18,844,386
MB Financial Inc.		71,020		2,109,294
National Penn Bancshares Inc.		151,398		1,569,997
Old National Bancorp		130,835		1,902,341
PNC Financial Services Group Inc. (The)b		683,047		50,224,446
Popular Inc.a,c		133,177		3,362,719
PrivateBancorp Inc.		84,602		2,060,905
Prosperity Bancshares Inc.		72,200		4,508,890
Regions Financial Corp.		1,798,121		17,315,905
Signature Banka,c		60,814		6,192,082
SunTrust Banks Inc.		693,624		23,333,511
Susquehanna Bancshares Inc.		241,536		2,846,502

Security	Shares		Value
SVB Financial Groupa,c		58,620	$	5,614,624
Synovus Financial Corp.		1,260,160		4,095,520
TCF Financial Corp.		212,291		3,222,577
Texas Capital Bancshares Inc.a,c		52,835		2,750,062
Trustmark Corp.		86,905		2,360,340
UMB Financial Corp.		47,514		2,799,525
Umpqua Holdings Corp.		144,701		2,368,755
United Bankshares Inc.		19,713		583,111
Valley National Bancorpa		257,760		2,513,160
Webster Financial Corp.		116,529		3,249,994
Westamerica Bancorp		34,755		1,789,187
Wintrust Financial Corp.		51,443		2,238,285
Zions Bancorp		237,211		6,729,676
				326,613,172
THRIFTS & MORTGAGE FINANCE — 5.74%
Capitol Federal Financial Inc.		177,690		2,251,332
Hudson City Bancorp Inc.		611,485		5,491,135
New York Community Bancorp Inc.		566,338		9,180,339
People’s United Financial Inc.		412,943		5,958,768
Washington Federal Inc.		133,700		3,045,686
				25,927,260
TOTAL COMMON STOCKS
(Cost: $423,819,723)				451,082,885
SHORT-TERM INVESTMENTS — 2.39%
MONEY MARKET FUNDS — 2.39%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,d,e		9,790,799		9,790,799
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,d,e		569,011		569,011
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,d		434,266		434,266
				10,794,076
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,794,076)				10,794,076

28 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® U.S. REGIONAL BANKS ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 102.24%
(Cost: $434,613,799)	$	461,876,961
Other Assets, Less Liabilities — (2.24)%		(10,118,457	)
NET ASSETS — 100.00%	$	451,758,504

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Affiliated issuer. See Note 2.

^c  Non-income earning security.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Aerospace & Defense ETF			iShares U.S. Broker-Dealers ETF			iShares U.S. Healthcare Providers ETF
ASSETS
Investments, at cost:
Unaffiliated	$	187,289,595		$	133,146,947		$	343,302,889
Affiliated (Note 2)		14,136,295			16,193,551			35,654,979
Total cost of investments	$	201,425,890		$	149,340,498		$	378,957,868
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	217,367,222		$	149,955,329		$	376,832,825
Affiliated (Note 2)		14,136,295			16,193,551			35,654,979
Total fair value of investments		231,503,517			166,148,880			412,487,804
Receivables:
Dividends and interest		121,098			20,649			9,141
Capital shares sold		31,977			—			—
Total Assets		231,656,592			166,169,529			412,496,945
LIABILITIES
Payables:
Investment securities purchased		23,341			—			—
Collateral for securities on loan (Note 5)		13,802,227			16,124,078			35,301,827
Investment advisory fees (Note 2)		74,487			55,414			145,474
Total Liabilities		13,900,055			16,179,492			35,447,301
NET ASSETS	$	217,756,537		$	149,990,037		$	377,049,644
Net assets consist of:
Paid-in capital	$	227,144,699		$	203,780,107		$	333,209,030
Undistributed (distributions in excess of) net investment income		116,974			(30,023	)		41,549
Undistributed net realized gain (accumulated net realized loss)		(39,582,763	)		(70,568,429	)		10,269,129
Net unrealized appreciation		30,077,627			16,808,382			33,529,936
NET ASSETS	$	217,756,537		$	149,990,037		$	377,049,644
Shares outstandingb		2,250,000			4,400,000			4,300,000
Net asset value per share	$	96.78		$	34.09		$	87.69

^a  Securities on loan with values of $13,423,261, $15,779,398 and $34,500,440, respectively. See Note 5.

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

See notes to financial statements.

30 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Home Construction ETF			iShares U.S. Insurance ETF			iShares U.S. Medical Devices ETF
ASSETS
Investments, at cost:
Unaffiliated	$	1,696,008,101		$	129,127,325		$	426,962,313
Affiliated (Note 2)		138,465,878			2,257,155			54,817,528
Total cost of investments	$	1,834,473,979		$	131,384,480		$	481,779,841
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	1,645,992,769		$	158,652,311		$	481,755,504
Affiliated (Note 2)		138,465,878			2,257,155			54,817,528
Total fair value of investments		1,784,458,647			160,909,466			536,573,032
Receivables:
Dividends and interest		587,024			32,229			182,879
Capital shares sold		1,161,202			—			—
Total Assets		1,786,206,873			160,941,695			536,755,911
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		137,189,659			2,143,727			54,276,887
Capital shares redeemed		2,128,222			—			—
Investment advisory fees (Note 2)		624,815			58,316			173,850
Total Liabilities		139,942,696			2,202,043			54,450,737
NET ASSETS	$	1,646,264,177		$	158,739,652		$	482,305,174
Net assets consist of:
Paid-in capital	$	1,723,760,797		$	144,384,665		$	457,135,589
Undistributed (distributions in excess of) net investment income		(110,032	)		36,475			424,493
Accumulated net realized loss		(27,371,256	)		(15,206,474	)		(30,048,099	)
Net unrealized appreciation (depreciation)		(50,015,332	)		29,524,986			54,793,191
NET ASSETS	$	1,646,264,177		$	158,739,652		$	482,305,174
Shares outstandingb		73,000,000			3,550,000			5,400,000
Net asset value per share	$	22.55		$	44.72		$	89.32

^a  Securities on loan with values of $133,327,205, $2,095,517 and $52,963,965, respectively. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 31

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Oil & Gas Exploration & Production ETF			iShares U.S. Oil Equipment & Services ETF			iShares U.S. Pharmaceuticals ETF
ASSETS
Investments, at cost:
Unaffiliated	$	415,473,574		$	454,495,844		$	406,666,867
Affiliated (Note 2)		19,477,273			29,780,520			62,956,750
Total cost of investments	$	434,950,847		$	484,276,364		$	469,623,617
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	429,323,460		$	491,702,815		$	487,959,336
Affiliated (Note 2)		19,477,273			29,780,520			62,956,750
Total fair value of investments		448,800,733			521,483,335			550,916,086
Receivables:
Dividends and interest		659,883			119,995			412,856
Total Assets		449,460,616			521,603,330			551,328,942
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		18,824,542			29,082,234			62,610,866
Investment advisory fees (Note 2)		158,595			178,600			184,112
Total Liabilities		18,983,137			29,260,834			62,794,978
NET ASSETS	$	430,477,479		$	492,342,496		$	488,533,964
Net assets consist of:
Paid-in capital	$	433,087,964		$	564,046,975		$	390,801,896
Undistributed (distributions in excess of) net investment income		519,130			(106,602	)		217,177
Undistributed net realized gain (accumulated net realized loss)		(16,979,501	)		(108,804,848	)		16,222,422
Net unrealized appreciation		13,849,886			37,206,971			81,292,469
NET ASSETS	$	430,477,479		$	492,342,496		$	488,533,964
Shares outstandingb		5,200,000			7,450,000			4,500,000
Net asset value per share	$	82.78		$	66.09		$	108.56

^a  Securities on loan with values of $18,386,500, $28,379,929 and $60,886,656, respectively. See Note 5.

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

See notes to financial statements.

32 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares U.S. Regional Banks ETF
ASSETS
Investments, at cost:
Unaffiliated	$	375,761,624
Affiliated (Note 2)		58,852,175
Total cost of investments	$	434,613,799
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	400,858,439
Affiliated (Note 2)		61,018,522
Total fair value of investments		461,876,961
Receivables:
Dividends and interest		544,506
Total Assets		462,421,467
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		10,359,810
Capital shares redeemed		111,248
Investment advisory fees (Note 2)		191,905
Total Liabilities		10,662,963
NET ASSETS	$	451,758,504
Net assets consist of:
Paid-in capital	$	446,401,298
Undistributed net investment income		1,219,459
Accumulated net realized loss		(23,125,415	)
Net unrealized appreciation		27,263,162
NET ASSETS	$	451,758,504
Shares outstandingb		14,600,000
Net asset value per share	$	30.94

^a  Securities on loan with a value of $10,139,498. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 33

Statements of Operations (Unaudited)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Aerospace & Defense ETF			iShares U.S. Broker-Dealers ETF			iShares U.S. Healthcare Providers ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	1,412,737		$	931,779		$	1,354,016
Interest — affiliated (Note 2)		2			1			7
Securities lending income — affiliated (Note 2)		86,003			10,747			34,439
Total investment income		1,498,742			942,527			1,388,462
EXPENSES
Investment advisory fees (Note 2)		303,417			293,394			832,255
Total expenses		303,417			293,394			832,255
Net investment income		1,195,325			649,133			556,207
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(972,244	)		(497,590	)		1,756,191
In-kind redemptions — unaffiliated		845,897			4,373,726			20,494,370
Net realized gain (loss)		(126,347	)		3,876,136			22,250,561
Net change in unrealized appreciation/depreciation		31,058,076			20,185,205			12,227,592
Net realized and unrealized gain		30,931,729			24,061,341			34,478,153
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	32,127,054		$	24,710,474		$	35,034,360

See notes to financial statements.

34 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Home Construction ETF			iShares U.S. Insurance ETF			iShares U.S. Medical Devices ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	5,371,597		$	1,123,016		$	1,619,782
Interest — affiliated (Note 2)		31			2			5
Securities lending income — affiliated (Note 2)		260,800			4,408			105,671
Total investment income		5,632,428			1,127,426			1,725,458
EXPENSES
Investment advisory fees (Note 2)		4,547,734			311,191			916,097
Total expenses		4,547,734			311,191			916,097
Net investment income		1,084,694			816,235			809,361
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(23,099,486	)		(84,908	)		(2,361,896	)
Investments — affiliated (Note 2)		(1,638,906	)		—			—
In-kind redemptions — unaffiliated		201,838,256			5,115,272			14,368,465
In-kind redemptions — affiliated (Note 2)		4,510,182			—			—
Net realized gain		181,610,046			5,030,364			12,006,569
Net change in unrealized appreciation/depreciation		(397,353,345	)		12,351,836			54,828,888
Net realized and unrealized gain (loss)		(215,743,299	)		17,382,200			66,835,457
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(214,658,605	)	$	18,198,435		$	67,644,818

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Oil & Gas Exploration & Production ETF			iShares U.S. Oil Equipment & Services ETF			iShares U.S. Pharmaceuticals ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	3,219,220		$	2,621,405		$	3,579,274
Interest — affiliated (Note 2)		3			7			10
Securities lending income — affiliated (Note 2)		39,010			73,349			323,263
Total investment income		3,258,233			2,694,761			3,902,547
EXPENSES
Investment advisory fees (Note 2)		853,015			937,808			1,089,902
Total expenses		853,015			937,808			1,089,902
Net investment income		2,405,218			1,756,953			2,812,645
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(15,578,003	)		(6,429,375	)		(2,237,641	)
In-kind redemptions — unaffiliated		26,660,772			2,677,234			27,862,290
Net realized gain (loss)		11,082,769			(3,752,141	)		25,624,649
Net change in unrealized appreciation/depreciation		47,349,694			68,222,228			16,640,138
Net realized and unrealized gain		58,432,463			64,470,087			42,264,787
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	60,837,681		$	66,227,040		$	45,077,432

^a  Net of foreign withholding tax of $  —, $5,648 and $  —, respectively.

See notes to financial statements.

36 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares U.S. Regional Banks ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	4,651,843
Dividends — affiliated (Note 2)		693,927
Interest — affiliated (Note 2)		6
Securities lending income — affiliated (Note 2)		11,417
Total investment income		5,357,193
EXPENSES
Investment advisory fees (Note 2)		1,061,327
Total expenses		1,061,327
Net investment income		4,295,866
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(3,533,533	)
Investments — affiliated (Note 2)		(14,069	)
In-kind redemptions — unaffiliated		27,047,326
In-kind redemptions — affiliated (Note 2)		3,175,181
Net realized gain		26,674,905
Net change in unrealized appreciation/depreciation		29,263,763
Net realized and unrealized gain		55,938,668
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	60,234,534

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares U.S. Aerospace & Defense ETF						iShares U.S. Broker-Dealers ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,195,325		$	1,808,610		$	649,133		$	1,082,825
Net realized gain (loss)		(126,347	)		(2,081,600	)		3,876,136			(6,032,183	)
Net change in unrealized appreciation/depreciation		31,058,076			11,011,228			20,185,205			13,963,932
Net increase in net assets resulting from operations		32,127,054			10,738,238			24,710,474			9,014,574
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,133,909	)		(1,810,195	)		(679,156	)		(1,082,825	)
Return of capital		—			—			—			(310,733	)
Total distributions to shareholders		(1,133,909	)		(1,810,195	)		(679,156	)		(1,393,558	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		107,570,712			—			59,492,788			62,181,314
Cost of shares redeemed		(4,123,774	)		(32,685,145	)		(26,052,299	)		(31,504,399	)
Net increase (decrease) in net assets from capital share transactions		103,446,938			(32,685,145	)		33,440,489			30,676,915
INCREASE (DECREASE) IN NET ASSETS		134,440,083			(23,757,102	)		57,471,807			38,297,931
NET ASSETS
Beginning of period		83,316,454			107,073,556			92,518,230			54,220,299
End of period	$	217,756,537		$	83,316,454		$	149,990,037		$	92,518,230
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	116,974		$	55,558		$	(30,023	)	$	—
SHARES ISSUED AND REDEEMED
Shares sold		1,200,000			—			1,900,000			2,350,000
Shares redeemed		(50,000	)		(500,000	)		(850,000	)		(1,300,000	)
Net increase (decrease) in shares outstanding		1,150,000			(500,000	)		1,050,000			1,050,000

See notes to financial statements.

38 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Healthcare Providers ETF						iShares U.S. Home Construction ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	556,207		$	1,723,339		$	1,084,694		$	8,490,199
Net realized gain		22,250,561			4,780,817			181,610,046			278,196,953
Net change in unrealized appreciation/depreciation		12,227,592			41,518,892			(397,353,345	)		314,508,485
Net increase (decrease) in net assets resulting from operations		35,034,360			48,023,048			(214,658,605	)		601,195,637
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(535,410	)		(1,745,271	)		(1,553,834	)		(8,445,311	)
Total distributions to shareholders		(535,410	)		(1,745,271	)		(1,553,834	)		(8,445,311	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		158,148,422			82,357,818			1,443,572,059			2,174,417,827
Cost of shares redeemed		(90,824,703	)		(138,701,453	)		(1,900,893,154	)		(1,127,335,623	)
Net increase (decrease) in net assets from capital share transactions		67,323,719			(56,343,635	)		(457,321,095	)		1,047,082,204
INCREASE (DECREASE) IN NET ASSETS		101,822,669			(10,065,858	)		(673,533,534	)		1,639,832,530
NET ASSETS
Beginning of period		275,226,975			285,292,833			2,319,797,711			679,965,181
End of period	$	377,049,644		$	275,226,975		$	1,646,264,177		$	2,319,797,711
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	41,549		$	20,752		$	(110,032	)	$	359,108
SHARES ISSUED AND REDEEMED
Shares sold		1,850,000			1,200,000			63,300,000			108,150,000
Shares redeemed		(1,050,000	)		(2,150,000	)		(85,950,000	)		(56,450,000	)
Net increase (decrease) in shares outstanding		800,000			(950,000	)		(22,650,000	)		51,700,000

See notes to financial statements.

FINANCIAL STATEMENTS 39

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Insurance ETF						iShares U.S. Medical Devices ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	816,235		$	1,460,363		$	809,361		$	1,523,518
Net realized gain		5,030,364			148,068			12,006,569			18,784,835
Net change in unrealized appreciation/depreciation		12,351,836			18,160,950			54,828,888			13,633,128
Net increase in net assets resulting from operations		18,198,435			19,769,381			67,644,818			33,941,481
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(818,278	)		(1,463,112	)		(633,130	)		(1,705,608	)
Total distributions to shareholders		(818,278	)		(1,463,112	)		(633,130	)		(1,705,608	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		48,550,412			33,556,847			155,329,698			237,059,440
Cost of shares redeemed		(16,348,814	)		(13,142,728	)		(76,881,625	)		(264,736,849	)
Net increase (decrease) in net assets from capital share transactions		32,201,598			20,414,119			78,448,073			(27,677,409	)
INCREASE IN NET ASSETS		49,581,755			38,720,388			145,459,761			4,558,464
NET ASSETS
Beginning of period		109,157,897			70,437,509			336,845,413			332,286,949
End of period	$	158,739,652		$	109,157,897		$	482,305,174		$	336,845,413
Undistributed net investment income included in net assets at end of period	$	36,475		$	38,518		$	424,493		$	248,262
SHARES ISSUED AND REDEEMED
Shares sold		1,150,000			1,000,000			1,900,000			3,400,000
Shares redeemed		(400,000	)		(400,000	)		(950,000	)		(3,900,000	)
Net increase (decrease) in shares outstanding		750,000			600,000			950,000			(500,000	)

See notes to financial statements.

40 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Oil & Gas Exploration & Production ETF						iShares U.S. Oil Equipment & Services ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,405,218		$	2,762,864		$	1,756,953		$	2,237,253
Net realized gain (loss)		11,082,769			(2,332,551	)		(3,752,141	)		(14,847,399	)
Net change in unrealized appreciation/depreciation		47,349,694			24,202,555			68,222,228			22,780,150
Net increase in net assets resulting from operations		60,837,681			24,632,868			66,227,040			10,170,004
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,886,088	)		(2,783,974	)		(1,863,555	)		(2,401,646	)
Total distributions to shareholders		(1,886,088	)		(2,783,974	)		(1,863,555	)		(2,401,646	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		199,372,455			275,362,919			84,342,197			124,115,958
Cost of shares redeemed		(146,908,965	)		(355,863,662	)		(23,483,896	)		(217,374,619	)
Net increase (decrease) in net assets from capital share transactions		52,463,490			(80,500,743	)		60,858,301			(93,258,661	)
INCREASE (DECREASE) IN NET ASSETS		111,415,083			(58,651,849	)		125,221,786			(85,490,303	)
NET ASSETS
Beginning of period		319,062,396			377,714,245			367,120,710			452,611,013
End of period	$	430,477,479		$	319,062,396		$	492,342,496		$	367,120,710
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	519,130		$	—		$	(106,602	)	$	—
SHARES ISSUED AND REDEEMED
Shares sold		2,600,000			4,300,000			1,350,000			2,300,000
Shares redeemed		(1,900,000	)		(5,650,000	)		(400,000	)		(4,250,000	)
Net increase (decrease) in shares outstanding		700,000			(1,350,000	)		950,000			(1,950,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 41

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S. Pharmaceuticals ETF						iShares U.S. Regional Banks ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,812,645		$	7,377,116		$	4,295,866		$	3,885,554
Net realized gain (loss)		25,624,649			37,144,870			26,674,905			(4,912,836	)
Net change in unrealized appreciation/depreciation		16,640,138			24,691,897			29,263,763			21,377,981
Net increase in net assets resulting from operations		45,077,432			69,213,883			60,234,534			20,350,699
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,848,185	)		(7,424,458	)		(3,850,464	)		(3,492,063	)
Total distributions to shareholders		(2,848,185	)		(7,424,458	)		(3,850,464	)		(3,492,063	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		62,833,421			213,947,652			200,750,856			225,804,253
Cost of shares redeemed		(82,350,275	)		(183,446,666	)		(155,200,898	)		(36,779,167	)
Net increase (decrease) in net assets from capital share transactions		(19,516,854	)		30,500,986			45,549,958			189,025,086
INCREASE IN NET ASSETS		22,712,393			92,290,411			101,934,028			205,883,722
NET ASSETS
Beginning of period		465,821,571			373,531,160			349,824,476			143,940,754
End of period	$	488,533,964		$	465,821,571		$	451,758,504		$	349,824,476
Undistributed net investment income included in net assets at end of period	$	217,177		$	252,717		$	1,219,459		$	774,057
SHARES ISSUED AND REDEEMED
Shares sold		600,000			2,350,000			6,650,000			8,800,000
Shares redeemed		(800,000	)		(2,100,000	)		(5,100,000	)		(1,550,000	)
Net increase (decrease) in shares outstanding		(200,000	)		250,000			1,550,000			7,250,000

See notes to financial statements.

42 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Aerospace & Defense ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	75.74		$	66.92		$	64.81		$	58.96		$	39.44		$	63.73
Income from investment operations:
Net investment incomea		0.79			1.38			0.68			0.54			0.61			0.49
Net realized and unrealized gain (loss)b		20.91			8.89			2.14			5.90			19.54			(24.29	)
Total from investment operations		21.70			10.27			2.82			6.44			20.15			(23.80	)
Less distributions from:
Net investment income		(0.66	)		(1.45	)		(0.71	)		(0.59	)		(0.63	)		(0.49	)
Total distributions		(0.66	)		(1.45	)		(0.71	)		(0.59	)		(0.63	)		(0.49	)
Net asset value, end of period	$	96.78		$	75.74		$	66.92		$	64.81		$	58.96		$	39.44
Total return		28.74	%c		15.63	%		4.45	%		11.08	%		51.46	%		(37.39	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	217,757		$	83,316		$	107,074		$	145,828		$	238,795		$	132,140
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.47	%
Ratio of net investment income to average net assetsd		1.78	%		2.07	%		1.09	%		0.97	%		1.24	%		1.02	%
Portfolio turnover ratee		11	%		26	%		16	%		10	%		14	%		14	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 43

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Broker-Dealers ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	27.62		$	23.57		$	29.91		$	29.32		$	22.84		$	41.20
Income from investment operations:
Net investment incomea		0.16			0.48			0.23			0.40			0.13			0.43
Net realized and unrealized gain (loss)b		6.48			4.25			(6.26	)		0.66			6.51			(18.32	)
Total from investment operations		6.64			4.73			(6.03	)		1.06			6.64			(17.89	)
Less distributions from:
Net investment income		(0.17	)		(0.53	)		(0.23	)		(0.43	)		(0.16	)		(0.47	)
Return of capital		—			(0.15	)		(0.08	)		(0.04	)		(0.00	)c		—
Total distributions		(0.17	)		(0.68	)		(0.31	)		(0.47	)		(0.16	)		(0.47	)
Net asset value, end of period	$	34.09		$	27.62		$	23.57		$	29.91		$	29.32		$	22.84
Total return		24.08	%d		20.66	%		(20.14	)%		3.71	%		29.11	%		(43.42	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	149,990		$	92,518		$	54,220		$	128,593		$	108,477		$	138,160
Ratio of expenses to average net assetse		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.47	%
Ratio of net investment income to average net assetse		1.00	%		1.99	%		0.96	%		1.43	%		0.50	%		1.55	%
Portfolio turnover ratef		14	%		39	%		20	%		32	%		24	%		59	%

^a  Based on average shares outstanding throughout each period.

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

^c  Rounds to less than $0.01.

^d  Not annualized.

^e  Annualized for periods of less than one year.

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

See notes to financial statements.

44 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Healthcare Providers ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	78.64		$	64.11		$	65.20		$	50.10		$	34.83		$	49.64
Income from investment operations:
Net investment income (loss)a		0.13			0.50			0.20			0.01			(0.13	)		(0.13	)
Net realized and unrealized gain (loss)b		9.05			14.56			(1.08	)		15.19			15.40			(14.68	)
Total from investment operations		9.18			15.06			(0.88	)		15.20			15.27			(14.81	)
Less distributions from:
Net investment income		(0.13	)		(0.53	)		(0.21	)		(0.10	)		—			—
Total distributions		(0.13	)		(0.53	)		(0.21	)		(0.10	)		—			—
Net asset value, end of period	$	87.69		$	78.64		$	64.11		$	65.20		$	50.10		$	34.83
Total return		11.67	%c		23.60	%		(1.35	)%		30.41	%		43.84	%		(29.84	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	377,050		$	275,227		$	285,293		$	260,817		$	197,911		$	74,884
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income (loss) to average net assetsd		0.30	%		0.73	%		0.33	%		0.03	%		(0.28	)%		(0.31	)%
Portfolio turnover ratee		8	%		18	%		23	%		13	%		19	%		13	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 45

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Home Construction ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	24.25		$	15.47		$	13.52		$	15.20		$	11.15		$	20.20
Income from investment operations:
Net investment incomea		0.01			0.12			0.09			0.09			0.08			0.19
Net realized and unrealized gain (loss)b		(1.69	)		8.78			1.95			(1.69	)		4.06			(8.99	)
Total from investment operations		(1.68	)		8.90			2.04			(1.60	)		4.14			(8.80	)
Less distributions from:
Net investment income		(0.02	)		(0.12	)		(0.09	)		(0.08	)		(0.09	)		(0.25	)
Total distributions		(0.02	)		(0.12	)		(0.09	)		(0.08	)		(0.09	)		(0.25	)
Net asset value, end of period	$	22.55		$	24.25		$	15.47		$	13.52		$	15.20		$	11.15
Total return		(6.93	)%c		57.69	%		15.34	%		(10.49	)%		37.44	%		(43.65	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,646,264		$	2,319,798		$	679,965		$	501,567		$	344,340		$	198,456
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.47	%
Ratio of net investment income to average net assetsd		0.11	%		0.57	%		0.74	%		0.69	%		0.67	%		1.44	%
Portfolio turnover ratee		17	%		17	%		10	%		22	%		35	%		35	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

46 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Insurance ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	38.98		$	32.02		$	33.54		$	30.51		$	19.55		$	44.05
Income from investment operations:
Net investment incomea		0.25			0.61			0.52			0.51			0.39			0.55
Net realized and unrealized gain (loss)b		5.75			6.96			(1.52	)		3.09			10.99			(24.50	)
Total from investment operations		6.00			7.57			(1.00	)		3.60			11.38			(23.95	)
Less distributions from:
Net investment income		(0.26	)		(0.61	)		(0.52	)		(0.57	)		(0.42	)		(0.55	)
Total distributions		(0.26	)		(0.61	)		(0.52	)		(0.57	)		(0.42	)		(0.55	)
Net asset value, end of period	$	44.72		$	38.98		$	32.02		$	33.54		$	30.51		$	19.55
Total return		15.43	%c		23.96	%		(2.78	)%		11.98	%		58.58	%		(54.66	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	158,740		$	109,158		$	70,438		$	85,520		$	85,418		$	28,350
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income to average net assetsd		1.18	%		1.82	%		1.77	%		1.68	%		1.50	%		2.06	%
Portfolio turnover ratee		3	%		18	%		11	%		15	%		9	%		25	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 47

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Medical Devices ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	75.70		$	67.13		$	68.61		$	59.90		$	39.80		$	56.58
Income from investment operations:
Net investment incomea		0.16			0.34			0.18			0.09			0.11			0.03
Net realized and unrealized gain (loss)b		13.59			8.63			(1.48	)		8.66			20.08			(16.77	)
Total from investment operations		13.75			8.97			(1.30	)		8.75			20.19			(16.74	)
Less distributions from:
Net investment income		(0.13	)		(0.40	)		(0.18	)		(0.04	)		(0.09	)		(0.04	)
Total distributions		(0.13	)		(0.40	)		(0.18	)		(0.04	)		(0.09	)		(0.04	)
Net asset value, end of period	$	89.32		$	75.70		$	67.13		$	68.61		$	59.90		$	39.80
Total return		18.18	%c		13.43	%		(1.86	)%		14.61	%		50.74	%		(29.58	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	482,305		$	336,845		$	332,287		$	493,959		$	446,255		$	214,902
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income to average net assetsd		0.40	%		0.50	%		0.29	%		0.15	%		0.21	%		0.07	%
Portfolio turnover ratee		8	%		9	%		20	%		33	%		25	%		26	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

48 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Oil & Gas Exploration & Production ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	70.90		$	64.57		$	74.76		$	56.64		$	39.19		$	75.29
Income from investment operations:
Net investment incomea		0.49			0.56			0.31			0.28			0.21			0.24
Net realized and unrealized gain (loss)b		11.76			6.33			(10.17	)		18.13			17.48			(36.12	)
Total from investment operations		12.25			6.89			(9.86	)		18.41			17.69			(35.88	)
Less distributions from:
Net investment income		(0.37	)		(0.56	)		(0.33	)		(0.29	)		(0.24	)		(0.22	)
Total distributions		(0.37	)		(0.56	)		(0.33	)		(0.29	)		(0.24	)		(0.22	)
Net asset value, end of period	$	82.78		$	70.90		$	64.57		$	74.76		$	56.64		$	39.19
Total return		17.33	%c		10.76	%		(13.17	)%		32.61	%		45.23	%		(47.69	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	430,477		$	319,062		$	377,714		$	590,617		$	424,786		$	335,055
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.27	%		0.87	%		0.48	%		0.47	%		0.43	%		0.47	%
Portfolio turnover ratee		31	%		13	%		13	%		21	%		22	%		19	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 49

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Oil Equipment & Services ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	56.48		$	53.56		$	67.03		$	47.17		$	31.08		$	69.03
Income from investment operations:
Net investment incomea		0.26			0.32			0.19			0.22			0.30			0.16
Net realized and unrealized gain (loss)b		9.62			2.95			(13.47	)		19.89			16.10			(37.97	)
Total from investment operations		9.88			3.27			(13.28	)		20.11			16.40			(37.81	)
Less distributions from:
Net investment income		(0.27	)		(0.35	)		(0.19	)		(0.25	)		(0.31	)		(0.14	)
Total distributions		(0.27	)		(0.35	)		(0.19	)		(0.25	)		(0.31	)		(0.14	)
Net asset value, end of period	$	66.09		$	56.48		$	53.56		$	67.03		$	47.17		$	31.08
Total return		17.54	%c		6.16	%		(19.80	)%		42.81	%		52.92	%		(54.76	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	492,342		$	367,121		$	452,611		$	713,851		$	412,740		$	194,235
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.47	%
Ratio of net investment income to average net assetsd		0.85	%		0.62	%		0.34	%		0.43	%		0.72	%		0.37	%
Portfolio turnover ratee		13	%		17	%		13	%		30	%		11	%		28	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

50 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Pharmaceuticals ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	99.11		$	83.94		$	71.96		$	58.90		$	41.11		$	49.28
Income from investment operations:
Net investment incomea		0.61			1.65			1.03			0.90			0.75			0.80
Net realized and unrealized gain (loss)b		9.46			15.19			11.95			13.07			17.79			(8.18	)
Total from investment operations		10.07			16.84			12.98			13.97			18.54			(7.38	)
Less distributions from:
Net investment income		(0.62	)		(1.67	)		(1.00	)		(0.91	)		(0.75	)		(0.79	)
Total distributions		(0.62	)		(1.67	)		(1.00	)		(0.91	)		(0.75	)		(0.79	)
Net asset value, end of period	$	108.56		$	99.11		$	83.94		$	71.96		$	58.90		$	41.11
Total return		10.19	%c		20.32	%		18.23	%		23.99	%		45.32	%		(15.13	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	488,534		$	465,822		$	373,531		$	194,288		$	170,802		$	98,676
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.47	%		0.48	%
Ratio of net investment income to average net assetsd		1.16	%		1.86	%		1.38	%		1.47	%		1.39	%		1.76	%
Portfolio turnover ratee		15	%		24	%		18	%		25	%		29	%		27	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 51

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Regional Banks ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	26.81		$	24.82		$	24.34		$	26.33		$	17.93		$	36.36
Income from investment operations:
Net investment incomea		0.28			0.53			0.42			0.30			0.30			1.05
Net realized and unrealized gain (loss)b		4.09			1.95			0.48			(2.01	)		8.43			(18.34	)
Total from investment operations		4.37			2.48			0.90			(1.71	)		8.73			(17.29	)
Less distributions from:
Net investment income		(0.24	)		(0.49	)		(0.42	)		(0.28	)		(0.33	)		(1.14	)
Total distributions		(0.24	)		(0.49	)		(0.42	)		(0.28	)		(0.33	)		(1.14	)
Net asset value, end of period	$	30.94		$	26.81		$	24.82		$	24.34		$	26.33		$	17.93
Total return		16.37	%c		10.17	%		4.03	%		(6.42	)%		49.30	%		(48.35	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	451,759		$	349,824		$	143,941		$	144,820		$	202,759		$	121,024
Ratio of expenses to average net assetsd		0.45	%		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.83	%		2.09	%		1.91	%		1.27	%		1.44	%		4.20	%
Portfolio turnover ratee		6	%		8	%		7	%		11	%		23	%		19	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

52 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

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

iShares ETF	Former Name a	Diversification Classification
U.S. Aerospace & Defense	iShares Dow Jones U.S. Aerospace & Defense Index Fund		Non-diversified
U.S. Broker-Dealers	iShares Dow Jones U.S. Broker-Dealers Index Fund		Non-diversified
U.S. Healthcare Providers	iShares Dow Jones U.S. Healthcare Providers Index Fund		Non-diversified
U.S. Home Construction	iShares Dow Jones U.S. Home Construction Index Fund		Non-diversified
U.S. Insurance	iShares Dow Jones U.S. Insurance Index Fund		Non-diversified
U.S. Medical Devices	iShares Dow Jones U.S. Medical Devices Index Fund		Non-diversified
U.S. Oil & Gas Exploration & Production	iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund		Non-diversified
U.S. Oil Equipment & Services	iShares Dow Jones U.S. Oil Equipment & Services Index Fund		Non-diversified
U.S. Pharmaceuticals	iShares Dow Jones U.S. Pharmaceuticals Index Fund		Non-diversified
U.S. Regional Banks	iShares Dow Jones U.S. Regional Banks Index Fund		Non-diversified

^a  The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

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

1. SIGNIFICANT ACCOUNTING POLICIES

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

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

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

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

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

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

54 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

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

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

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of October 31, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

iShares ETF and Investment Type	Investments
	Level 1		Level 2		Level 3		Total
U.S. Aerospace & Defense
Assets:
Common Stocks	$	217,367,222	$	—	$	—	$	217,367,222
Money Market Funds		14,136,295		—		—		14,136,295
	$	231,503,517	$	—	$	—	$	231,503,517
U.S. Broker-Dealers
Assets:
Common Stocks	$	149,955,329	$	—	$	—	$	149,955,329
Money Market Funds		16,193,551		—		—		16,193,551
	$	166,148,880	$	—	$	—	$	166,148,880
U.S. Healthcare Providers
Assets:
Common Stocks	$	376,832,825	$	—	$	—	$	376,832,825
Money Market Funds		35,654,979		—		—		35,654,979
	$	412,487,804	$	—	$	—	$	412,487,804
U.S. Home Construction
Assets:
Common Stocks	$	1,645,992,769	$	—	$	—	$	1,645,992,769
Money Market Funds		138,465,878		—		—		138,465,878
	$	1,784,458,647	$	—	$	—	$	1,784,458,647

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

iShares ETF and Investment Type	Investments
	Level 1		Level 2			Level 3		Total
U.S. Insurance
Assets:
Common Stocks	$	158,652,311	$	—		$	—	$	158,652,311
Money Market Funds		2,257,155		—			—		2,257,155
	$	160,909,466	$	—		$	—	$	160,909,466
U.S. Medical Devices
Assets:
Common Stocks	$	481,755,504	$	—		$	—	$	481,755,504
Money Market Funds		54,817,528		—			—		54,817,528
	$	536,573,032	$	—		$	—	$	536,573,032
U.S. Oil & Gas Exploration & Production
Assets:
Common Stocks	$	429,323,460	$	—		$	—	$	429,323,460
Warrants		—		0	a		—		0	a
Money Market Funds		19,477,273		—			—		19,477,273
	$	448,800,733	$	0	a	$	—	$	448,800,733
U.S. Oil Equipment & Services
Assets:
Common Stocks	$	491,702,815	$	—		$	—	$	491,702,815
Money Market Funds		29,780,520		—			—		29,780,520
	$	521,483,335	$	—		$	—	$	521,483,335
U.S. Pharmaceuticals
Assets:
Common Stocks	$	487,959,336	$	—		$	—	$	487,959,336
Money Market Funds		62,956,750		—			—		62,956,750
	$	550,916,086	$	—		$	—	$	550,916,086
U.S. Regional Banks
Assets:
Common Stocks	$	451,082,885	$	—		$	—	$	451,082,885
Money Market Funds		10,794,076		—			—		10,794,076
	$	461,876,961	$	—		$	—	$	461,876,961

^a  Rounds to less than $1.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend

56 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

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

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to the Funds, BFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.48	%	First $10 billion
	0.43		Over $10 billion, up to and including $20 billion
	0.38		Over $20 billion

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

For the six months ended October 31, 2013, each Fund retained 65% of securities lending income and paid a fee to BTC equal to 35% of such income in the amounts as follows:

iShares ETF	Securities Lending Agent Fees
U.S. Aerospace & Defense	$	46,309
U.S. Broker-Dealers		5,787
U.S. Healthcare Providers		18,544
U.S. Home Construction		140,431
U.S. Insurance		2,373

iShares ETF	Securities Lending Agent Fees
U.S. Medical Devices	$	56,899
U.S. Oil & Gas Exploration & Production		21,006
U.S. Oil Equipment & Services		39,495
U.S. Pharmaceuticals		174,065
U.S. Regional Banks		6,147

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.

Cross trades for the six months ended October 31, 2013, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. 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.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest—affiliated” in the statements of operations.

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

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the six months ended October 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
U.S. Home Construction
Cavco Industries Inc.a		466,650		272,127		(469,319	)		269,458	$	15,782,155	$	—	$	1,673,038
M/I Homes Inc. a		1,440,208		953,454		(1,417,606	)		976,056		19,979,866		—		1,198,238
										$	35,762,021	$	—	$	2,871,276
U.S. Regional Banks
PNC Financial Services Group Inc. (The)		609,939		333,469		(260,361	)		683,047	$	50,224,446	$	693,927	$	3,161,112

^a  As of October 31, 2013, the Fund held less than 5% of the outstanding voting shares of the issuer.

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

58 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2013 were as follows:

iShares ETF	Purchases		Sales
U.S. Aerospace & Defense	$	14,355,681	$	14,369,098
U.S. Broker-Dealers		18,259,519		17,095,257
U.S. Healthcare Providers		29,054,012		28,799,649
U.S. Home Construction		331,210,658		357,045,932
U.S. Insurance		4,407,168		4,057,810
U.S. Medical Devices		33,431,761		33,042,410
U.S. Oil & Gas Exploration & Production		114,417,527		114,749,401
U.S. Oil Equipment & Services		54,186,466		54,501,600
U.S. Pharmaceuticals		71,151,251		72,680,290
U.S. Regional Banks		27,127,785		26,453,686

In-kind transactions (see Note 4) for the six months ended October 31, 2013 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
U.S. Aerospace & Defense	$	107,327,874	$	4,119,096
U.S. Broker-Dealers		58,647,252		25,662,262
U.S. Healthcare Providers		157,876,804		90,733,641
U.S. Home Construction		1,337,923,706		1,766,337,132
U.S. Insurance		48,064,361		16,242,153
U.S. Medical Devices		155,146,806		76,763,727
U.S. Oil & Gas Exploration & Production		198,778,093		146,580,504
U.S. Oil Equipment & Services		84,212,923		23,456,355
U.S. Pharmaceuticals		62,678,547		80,660,035
U.S. Regional Banks		200,055,815		154,564,234

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

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

NOTES TO FINANCIAL STATEMENTS 59

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities 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 Funds and any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates.

As of October 31, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of October 31, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, a Fund can resell or re-pledge the collateral and the borrower can resell or re-pledge the loaned securities.

As of October 31, 2013, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:

iShares ETF	Market Value of Securities on Loan
U.S. Aerospace & Defense	$	13,423,261
U.S. Broker-Dealers		15,779,398
U.S. Healthcare Providers		34,500,440
U.S. Home Construction		133,327,205
U.S. Insurance		2,095,517

iShares ETF	Market Value of Securities on Loan
U.S. Medical Devices	$	52,963,965
U.S. Oil & Gas Exploration & Production		18,386,500
U.S. Oil Equipment & Services		28,379,929
U.S. Pharmaceuticals		60,886,656
U.S. Regional Banks		10,139,498

The value of the related collateral disclosed in the Funds’ schedules of investments exceeded the market value of the securities on loan at period end.

60 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

6. INCOME TAX INFORMATION

For purposes of U.S. GAAP, 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 values per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

As of April 30, 2013, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
U.S. Aerospace & Defense	$	6,920,829	$	218,173	$	257,417	$	9,600,011	$	18,274,518	$	1,447,425	$	36,718,373
U.S. Broker-Dealers		7,431,215		203,587		7,089,008		31,804,022		17,785,438		2,266,806		66,580,076
U.S. Healthcare Providers		—		—		—		872,179		6,657,015		—		7,529,194
U.S. Home Construction		5,200,493		—		4,410,404		24,583,851		146,896,099		7,844,464		188,935,311
U.S. Insurance		1,712,473		83,550		25,936		11,890,168		2,305,872		2,460,926		18,478,925
U.S. Medical Devices		3,286,183		42,150		610,958		6,007,659		19,646,702		6,907,841		36,501,493
U.S. Oil & Gas Exploration & Production		4,989,777		115,443		413,565		1,593,277		9,040,459		7,967,383		24,119,904
U.S. Oil Equipment & Services		10,833,421		—		—		1,460,417		57,694,132		23,866,864		93,854,834
U.S. Pharmaceuticals		—		—		248,439		89,576		487,890		—		825,905
U.S. Regional Banks		9,319,639		47,538		94,893		14,260,731		19,012,829		1,225,053		43,960,683

^a  Must be utilized prior to losses subject to expiration.

As of October 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
U.S. Aerospace & Defense	$	202,073,402	$	31,184,674	$	(1,754,559	)	$	29,430,115
U.S. Broker-Dealers		157,142,983		19,068,168		(10,062,271	)		9,005,897
U.S. Healthcare Providers		383,410,106		41,015,633		(11,937,935	)		29,077,698
U.S. Home Construction		1,854,519,970		74,112,185		(144,173,508	)		(70,061,323	)
U.S. Insurance		133,086,853		29,916,778		(2,094,165	)		27,822,613
U.S. Medical Devices		487,333,016		67,164,636		(17,924,620	)		49,240,016
U.S. Oil & Gas Exploration & Production		437,493,493		41,063,419		(29,756,179	)		11,307,240
U.S. Oil Equipment & Services		492,444,390		53,619,174		(24,580,229	)		29,038,945
U.S. Pharmaceuticals		477,167,505		95,246,948		(21,498,367	)		73,748,581
U.S. Regional Banks		439,812,476		31,436,718		(9,372,233	)		22,064,485

NOTES TO FINANCIAL STATEMENTS 61

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

Management has reviewed the tax positions as of October 31, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

7. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

62 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

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

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 63

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on extensively by the

64 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the nature of such costs may impact the existence of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates reflects appropriate sharing of potential economies of scale with the Funds’ shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 65

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

66 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

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

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
U.S. Home Construction	$	0.016768	$	—	$	0.002069	$	0.018837		89	%		—	%		11	%		100	%
U.S. Medical Devices		0.123272		—		0.006472		0.129744		95			—			5			100

SUPPLEMENTAL INFORMATION 67

Notes:

68 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 69

Notes:

70 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold, or promoted by S&P Dow Jones Indices, LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

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

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

©2013 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.

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iS-SAR-43-1013

OCTOBER 31, 2013

2013 SEMI-ANNUAL REPORT (UNAUDITED)

iShares Trust

^Ø   iShares Morningstar Large-Cap ETF  |  JKD  |  NYSE Arca

^Ø   iShares Morningstar Large-Cap Growth ETF  |  JKE  |  NYSE Arca

^Ø   iShares Morningstar Large-Cap Value ETF  |  JKF  |  NYSE Arca

^Ø   iShares Morningstar Mid-Cap ETF  |  JKG  |  NYSE Arca

^Ø   iShares Morningstar Mid-Cap Growth ETF  |  JKH  |  NYSE Arca

^Ø   iShares Morningstar Mid-Cap Value ETF  |  JKI  |  NYSE Arca

^Ø   iShares Morningstar Small-Cap ETF  |  JKJ  |  NYSE Arca

^Ø   iShares Morningstar Small-Cap Growth ETF  |  JKK  |  NYSE Arca

^Ø   iShares Morningstar Small-Cap Value ETF  |  JKL  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	14
Shareholder Expenses	14
Schedules of Investments	15
iShares Morningstar Large-Cap ETF	15
iShares Morningstar Large-Cap Growth ETF	18
iShares Morningstar Large-Cap Value ETF	21
iShares Morningstar Mid-Cap ETF	23
iShares Morningstar Mid-Cap Growth ETF	27
iShares Morningstar Mid-Cap Value ETF	32
iShares Morningstar Small-Cap ETF	36
iShares Morningstar Small-Cap Growth ETF	41
iShares Morningstar Small-Cap Value ETF	46
Financial Statements	51
Financial Highlights	62
Notes to Financial Statements	71
Board Review and Approval of Investment Advisory Contract	81
Supplemental Information	88

Fund Performance Overview

iSHARES^® MORNINGSTAR LARGE-CAP ETF

Performance as of October 31, 2013

The iShares Morningstar Large-Cap ETF (the “Fund”), formerly the iShares Morningstar Large Core Index Fund, seeks to track the investment results of an index composed of large-capitalization U.S. equities, as represented by the Morningstar^® Large Core Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 10.57%, net of fees, while the total return for the Index was 10.71%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		30.92%		30.98%		31.27%		30.92%		30.98%		31.27%
5 Years		15.28%		15.21%		15.53%		103.64%		102.96%		105.84%
Since Inception		8.06%		8.05%		8.28%		106.37%		106.24%		110.26%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,105.70	$	1.06	$	1,000.00	$	1,024.20	$	1.02		0.20%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Consumer Staples	21.90	%
Health Care	19.37
Industrials	17.04
Financials	16.27
Information Technology	12.05
Consumer Discretionary	8.25
Energy	3.01
Materials	2.11
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Microsoft Corp.	5.94	%
Johnson & Johnson	5.79
Procter & Gamble Co. (The)	4.90
Berkshire Hathaway Inc. Class B	4.59
International Business Machines Corp.	4.09
Bank of America Corp.	3.32
Philip Morris International Inc.	3.20
PepsiCo Inc.	2.88
Wal-Mart Stores Inc.	2.77
McDonald’s Corp.	2.14
TOTAL	39.62	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

Performance as of October 31, 2013

The iShares Morningstar Large-Cap Growth ETF (the “Fund”), formerly the iShares Morningstar Large Growth Index Fund, seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar^® Large Growth Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 14.14%, net of fees, while the total return for the Index was 14.30%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		26.21%		26.27%		26.56%		26.21%		26.27%		26.56%
5 Years		16.84%		16.78%		17.14%		117.74%		117.23%		120.57%
Since Inception		5.89%		5.90%		6.16%		70.75%		70.79%		74.72%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,141.40	$	1.35	$	1,000.00	$	1,023.90	$	1.28		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Information Technology	34.66	%
Consumer Discretionary	23.82
Health Care	9.12
Energy	9.02
Financials	8.40
Consumer Staples	7.26
Industrials	3.80
Materials	3.45
Telecommunication Services	0.47
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Apple Inc.	10.00	%
Google Inc. Class A	6.08
Coca-Cola Co. (The)	3.18
Amazon.com Inc.	2.84
Comcast Corp. Class A	2.62
Schlumberger Ltd.	2.62
Oracle Corp.	2.52
QUALCOMM Inc.	2.51
Walt Disney Co. (The)	2.40
Home Depot Inc. (The)	2.35
TOTAL	37.12	%

6 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

Performance as of October 31, 2013

The iShares Morningstar Large-Cap Value ETF (the “Fund”), formerly the iShares Morningstar Large Value Index Fund, seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar^® Large Value Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 7.38%, net of fees, while the total return for the Index was 7.52%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.04%		21.08%		21.38%		21.04%		21.08%		21.38%
5 Years		10.91%		10.80%		11.18%		67.84%		67.00%		69.90%
Since Inception		5.60%		5.60%		5.87%		66.47%		66.37%		70.39%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,073.80	$	1.31	$	1,000.00	$	1,023.90	$	1.28		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Financials	25.33	%
Energy	20.96
Health Care	11.24
Industrials	9.78
Telecommunication Services	8.37
Utilities	7.97
Information Technology	7.25
Consumer Staples	3.27
Consumer Discretionary	3.08
Materials	2.75
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Exxon Mobil Corp.	9.10	%
General Electric Co.	6.14
Chevron Corp.	5.35
Wells Fargo & Co.	4.76
Pfizer Inc.	4.69
J.P. Morgan Chase & Co.	4.48
AT&T Inc.	4.43
Citigroup Inc.	3.42
Verizon Communications Inc.	3.33
Merck & Co. Inc.	3.04
TOTAL	48.74	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® MORNINGSTAR MID-CAP ETF

Performance as of October 31, 2013

The iShares Morningstar Mid-Cap ETF (the “Fund”), formerly the iShares Morningstar Mid Core Index Fund, seeks to track the investment results of an index composed of mid-capitalization U.S. equities, as represented by the Morningstar^® Mid Core Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.98%, net of fees, while the total return for the Index was 12.05%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		32.23%		32.24%		32.55%		32.23%		32.24%		32.55%
5 Years		20.55%		20.53%		20.82%		154.63%		154.40%		157.42%
Since Inception		9.59%		9.59%		9.84%		135.29%		135.25%		140.24%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,119.80	$	1.34	$	1,000.00	$	1,023.90	$	1.28		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Industrials	18.55	%
Financials	16.87
Information Technology	16.19
Consumer Discretionary	15.09
Health Care	11.40
Consumer Staples	7.22
Materials	6.72
Energy	4.68
Utilities	2.89
Telecommunication Services	0.39
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Actavis PLC	2.09	%
SanDisk Corp.	1.30
Liberty Media Corp.	1.26
Dover Corp.	1.22
Analog Devices Inc.	1.19
Rockwell Automation Inc.	1.19
AmerisourceBergen Corp.	1.18
Invesco Ltd.	1.17
Zimmer Holdings Inc.	1.16
Fidelity National Information Services Inc.	1.11
TOTAL	12.87	%

8 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

Performance as of October 31, 2013

The iShares Morningstar Mid-Cap Growth ETF (the “Fund”), formerly the iShares Morningstar Mid Growth Index Fund, seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar^® Mid Growth Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 12.95%, net of fees, while the total return for the Index was 13.05%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		31.23%		31.21%		31.44%		31.23%		31.21%		31.44%
5 Years		18.56%		18.56%		18.83%		134.29%		134.30%		136.96%
Since Inception		9.54%		9.53%		9.81%		134.28%		134.05%		139.71%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,129.50	$	1.61	$	1,000.00	$	1,023.70	$	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 (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Consumer Discretionary	26.40	%
Information Technology	19.54
Industrials	15.15
Health Care	12.28
Financials	11.38
Energy	9.76
Consumer Staples	1.90
Materials	1.62
Telecommunication Services	1.57
Utilities	0.40
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Netflix Inc.	1.44	%
Chipotle Mexican Grill Inc.	1.24
Starwood Hotels & Resorts Worldwide Inc.	1.09
Harley-Davidson Inc.	1.09
IntercontinentalExchange Inc.	1.07
Host Hotels & Resorts Inc.	1.06
Michael Kors Holdings Ltd.	1.04
Moody’s Corp.	1.04
Wynn Resorts Ltd.	1.02
O’Reilly Automotive Inc.	1.02
TOTAL	11.11	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

Performance as of October 31, 2013

The iShares Morningstar Mid-Cap Value ETF (the “Fund”), formerly the iShares Morningstar Mid Value Index Fund, seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar^® Mid Value Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 14.68%, net of fees, while the total return for the Index was 14.84%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		40.15%		40.31%		40.61%		40.15%		40.31%		40.61%
5 Years		19.10%		19.09%		19.45%		139.64%		139.50%		143.21%
Since Inception		9.24%		9.25%		9.52%		128.45%		128.52%		133.75%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,146.80	$	1.62	$	1,000.00	$	1,023.70	$	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 (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Financials	26.50	%
Utilities	13.47
Consumer Discretionary	11.10
Information Technology	10.92
Materials	10.36
Industrials	8.85
Health Care	6.97
Energy	5.93
Consumer Staples	5.13
Telecommunication Services	0.77
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Micron Technology Inc.	1.40	%
Parker Hannifin Corp.	1.32
St. Jude Medical Inc.	1.25
Nucor Corp.	1.25
Seagate Technology PLC	1.20
Boston Scientific Corp.	1.19
Hartford Financial Services Group Inc. (The)	1.17
Western Digital Corp.	1.12
M&T Bank Corp.	1.11
Mylan Inc.	1.10
TOTAL	12.11	%

10 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MORNINGSTAR SMALL-CAP ETF

Performance as of October 31, 2013

The iShares Morningstar Small-Cap ETF (the “Fund”), formerly the iShares Morningstar Small Core Index Fund, seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Morningstar^® Small Core Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 14.50%, net of fees, while the total return for the Index was 14.61%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		35.08%		35.19%		35.29%		35.08%		35.19%		35.29%
5 Years		18.62%		18.74%		18.82%		134.90%		136.05%		136.81%
Since Inception		9.10%		9.09%		9.30%		125.69%		125.54%		129.48%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,145.00	$	1.35	$	1,000.00	$	1,023.90	$	1.28		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Consumer Discretionary	21.34	%
Financials	20.92
Industrials	17.50
Information Technology	13.87
Health Care	7.17
Materials	6.97
Energy	6.77
Consumer Staples	4.36
Utilities	1.10
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Mid-America Apartment Communities Inc.	1.11	%
Brunswick Corp.	0.91
Visteon Corp.	0.86
Huntington Ingalls Industries Inc.	0.79
Prosperity Bancshares Inc.	0.78
Avis Budget Group Inc.	0.76
Generac Holdings Inc.	0.75
Teledyne Technologies Inc.	0.74
Fifth & Pacific Companies Inc.	0.72
Tenneco Inc.	0.72
TOTAL	8.14	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

Performance as of October 31, 2013

The iShares Morningstar Small-Cap Growth ETF (the “Fund”), formerly the iShares Morningstar Small Growth Index Fund, seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar^® Small Growth Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 22.13%, net of fees, while the total return for the Index was 22.14%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		39.94%		40.11%		39.88%		39.94%		40.11%		39.88%
5 Years		20.05%		20.08%		20.20%		149.32%		149.69%		150.93%
Since Inception		8.75%		8.75%		8.95%		119.01%		118.96%		122.66%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,221.30	$	1.68	$	1,000.00	$	1,023.70	$	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 (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Information Technology	27.72	%
Health Care	20.89
Industrials	13.52
Consumer Discretionary	12.87
Financials	10.98
Energy	5.95
Consumer Staples	4.42
Materials	3.23
Telecommunication Services	0.32
Utilities	0.10
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Incyte Corp.	1.11	%
CoStar Group Inc.	1.05
E*TRADE Financial Corp.	1.01
Ultimate Software Group Inc. (The)	0.92
Middleby Corp. (The)	0.90
Hexcel Corp.	0.88
Cubist Pharmaceuticals Inc.	0.85
Align Technology Inc.	0.83
Hain Celestial Group Inc.	0.82
Pandora Media Inc.	0.82
TOTAL	9.19	%

12 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

Performance as of October 31, 2013

The iShares Morningstar Small-Cap Value ETF (the “Fund”), formerly the iShares Morningstar Small Value Index Fund, seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar^® Small Value Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 11.33%, net of fees, while the total return for the Index was 11.49%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		31.91%		32.10%		32.26%		31.91%		32.10%		32.26%
5 Years		19.01%		19.41%		19.32%		138.72%		142.79%		141.88%
Since Inception		9.59%		9.59%		9.89%		135.37%		135.25%		141.22%

The inception date of the Fund was 6/28/04. The first day of secondary market trading was 7/2/04.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,113.30	$	1.60	$	1,000.00	$	1,023.70	$	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 (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Financials	35.05	%
Industrials	16.89
Utilities	9.92
Consumer Discretionary	9.52
Information Technology	9.06
Materials	5.68
Energy	5.10
Health Care	4.23
Consumer Staples	3.62
Telecommunication Services	0.93
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Rite Aid Corp.	1.03	%
Pitney Bowes Inc.	0.98
US Airways Group Inc.	0.96
Terex Corp.	0.89
FirstMerit Corp.	0.85
United States Steel Corp.	0.83
Protective Life Corp.	0.82
Brocade Communications Systems Inc.	0.82
ITT Corp.	0.82
Patterson-UTI Energy Inc.	0.81
TOTAL	8.81	%

FUND PERFORMANCE OVERVIEWS 13

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2013 and held through October 31, 2013, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

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

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

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

14 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR LARGE-CAP ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.84%
AEROSPACE & DEFENSE — 5.50%
Boeing Co. (The)		63,822	$	8,328,771
Honeywell International Inc.		72,167		6,259,044
United Technologies Corp.		77,617		8,246,806
				22,834,621
AIR FREIGHT & LOGISTICS — 2.43%
FedEx Corp.		27,324		3,579,444
United Parcel Service Inc. Class B		66,432		6,526,280
				10,105,724
BEVERAGES — 2.87%
PepsiCo Inc.		141,807		11,924,551
				11,924,551
BIOTECHNOLOGY — 1.94%
Amgen Inc.		69,272		8,035,552
				8,035,552
CAPITAL MARKETS — 0.44%
Ameriprise Financial Inc.		18,216		1,831,437
				1,831,437
CHEMICALS — 2.10%
Air Products and Chemicals Inc.		19,295		2,103,348
E.I. du Pont de Nemours and Co.		84,911		5,196,553
Mosaic Co. (The)		31,276		1,434,005
				8,733,906
COMMERCIAL BANKS — 1.52%
U.S. Bancorp		169,122		6,318,398
				6,318,398
COMMERCIAL SERVICES & SUPPLIES — 0.37%
Tyco International Ltd.		42,450		1,551,547
				1,551,547
CONSUMER FINANCE — 0.56%
Discover Financial Services		44,517		2,309,542
				2,309,542
DIVERSIFIED FINANCIAL SERVICES — 8.42%
Bank of America Corp.		987,832		13,790,135
Berkshire Hathaway Inc. Class Ba,b		165,503		19,046,085
CME Group Inc.		28,918		2,146,005
				34,982,225
ELECTRICAL EQUIPMENT — 1.80%
Eaton Corp. PLC		43,583		3,075,216
Emerson Electric Co.		65,703		4,400,130
				7,475,346

Security	Shares		Value
ENERGY EQUIPMENT & SERVICES — 0.77%
National Oilwell Varco Inc.		39,315	$	3,191,592
				3,191,592
FOOD & STAPLES RETAILING — 6.51%
CVS Caremark Corp.		112,950		7,032,267
Kroger Co. (The)		47,702		2,043,554
Sysco Corp.		54,174		1,751,987
Wal-Mart Stores Inc.		149,670		11,487,173
Walgreen Co.		79,943		4,735,823
				27,050,804
FOOD PRODUCTS — 2.70%
ConAgra Foods Inc.		38,757		1,232,860
General Mills Inc.		59,027		2,976,141
Kellogg Co.		23,626		1,494,345
Mondelez International Inc. Class A		163,735		5,508,045
				11,211,391
HEALTH CARE EQUIPMENT & SUPPLIES — 4.91%
Abbott Laboratories		142,904		5,223,141
Baxter International Inc.		49,913		3,287,769
Becton, Dickinson and Co.		17,876		1,879,304
Covidien PLC		42,315		2,712,815
Medtronic Inc.		91,719		5,264,671
Stryker Corp.		27,150		2,005,299
				20,372,999
HEALTH CARE PROVIDERS & SERVICES — 2.33%
McKesson Corp.		21,024		3,286,892
UnitedHealth Group Inc.		93,487		6,381,423
				9,668,315
HOTELS, RESTAURANTS & LEISURE — 2.47%
Carnival Corp.		40,192		1,392,653
McDonald’s Corp.		91,918		8,871,925
				10,264,578
HOUSEHOLD PRODUCTS — 5.81%
Kimberly-Clark Corp.		35,222		3,803,976
Procter & Gamble Co. (The)		251,829		20,335,192
				24,139,168
INDUSTRIAL CONGLOMERATES — 1.81%
3M Co.		59,704		7,513,748
				7,513,748
INSURANCE — 3.62%
American International Group Inc.		135,752		7,011,591
Aon PLC		28,295		2,237,851
Chubb Corp. (The)		23,458		2,160,013

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP ETF

October 31, 2013

Security	Shares		Value
Marsh & McLennan Companies Inc.		50,575	$	2,316,335
Progressive Corp. (The)		50,803		1,319,354
				15,045,144
IT SERVICES — 4.09%
International Business Machines Corp.		94,681		16,967,782
				16,967,782
LEISURE EQUIPMENT & PRODUCTS — 0.34%
Mattel Inc.		31,638		1,403,778
				1,403,778
LIFE SCIENCES TOOLS & SERVICES — 0.78%
Thermo Fisher Scientific Inc.		33,153		3,241,700
				3,241,700
MACHINERY — 3.92%
Caterpillar Inc.		58,501		4,876,643
Cummins Inc.		16,025		2,035,496
Deere & Co.		35,211		2,881,668
Illinois Tool Works Inc.		37,898		2,985,983
Ingersoll-Rand PLC		24,851		1,678,188
PACCAR Inc.		32,588		1,811,893
				16,269,871
MEDIA — 3.57%
DISH Network Corp. Class A		19,277		929,151
Omnicom Group Inc.		23,614		1,608,350
Time Warner Cable Inc.		26,283		3,157,902
Time Warner Inc.		84,596		5,815,129
Viacom Inc. Class B NVS		39,909		3,324,021
				14,834,553
MULTILINE RETAIL — 1.29%
Macy’s Inc.		34,546		1,592,916
Target Corp.		58,034		3,760,023
				5,352,939
OIL, GAS & CONSUMABLE FUELS — 2.24%
Occidental Petroleum Corp.		74,091		7,118,663
Spectra Energy Corp.		61,601		2,191,148
				9,309,811
PHARMACEUTICALS — 9.39%
AbbVie Inc.		145,782		7,063,138
Bristol-Myers Squibb Co.		151,381		7,950,530
Johnson & Johnson		259,122		23,997,288
				39,010,956
REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.69%
HCP Inc.		41,788		1,734,202

Security	Shares		Value
Public Storageb		13,296	$	2,220,033
Vornado Realty Trust		15,966		1,421,932
Weyerhaeuser Co.		53,630		1,630,352
				7,006,519
ROAD & RAIL — 1.18%
CSX Corp.		93,751		2,443,151
Norfolk Southern Corp.		28,697		2,468,516
				4,911,667
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.50%
Applied Materials Inc.		110,467		1,971,836
Texas Instruments Inc.		101,255		4,260,810
				6,232,646
SOFTWARE — 6.44%
Activision Blizzard Inc.		39,259		653,270
Microsoft Corp.		697,004		24,639,091
Symantec Corp.		64,155		1,458,885
				26,751,246
SPECIALTY RETAIL — 0.56%
Gap Inc. (The)		25,326		936,809
L Brands Inc.		22,361		1,400,022
				2,336,831
TOBACCO — 3.97%
Lorillard Inc.		34,334		1,751,378
Philip Morris International Inc.		148,826		13,263,373
Reynolds American Inc.		29,068		1,493,223
				16,507,974
TOTAL COMMON STOCKS
(Cost: $326,391,023)				414,698,861
SHORT-TERM INVESTMENTS — 1.00%
MONEY MARKET FUNDS — 1.00%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		3,185,470		3,185,470
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		185,130		185,130

16 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP ETF

October 31, 2013

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		771,524	$	771,524
				4,142,124
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,142,124)				4,142,124
TOTAL INVESTMENTS IN SECURITIES — 100.84%
(Cost: $330,533,147)				418,840,985
Other Assets, Less Liabilities — (0.84)%				(3,490,567	)
NET ASSETS — 100.00%			$	415,350,418

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.80%
AEROSPACE & DEFENSE — 0.77%
Precision Castparts Corp.		14,736	$	3,734,839
				3,734,839
AUTO COMPONENTS — 0.34%
Delphi Automotive PLC		28,583		1,634,948
				1,634,948
BEVERAGES — 3.42%
Brown-Forman Corp. Class B NVS		16,453		1,200,740
Coca-Cola Co. (The)		386,050		15,275,998
				16,476,738
BIOTECHNOLOGY — 6.12%
Alexion Pharmaceuticals Inc.a		19,802		2,434,656
Biogen Idec Inc.a		24,066		5,876,677
Celgene Corp.a		41,645		6,183,866
Gilead Sciences Inc.a		154,990		11,002,740
Regeneron Pharmaceuticals Inc.a,b		7,898		2,271,465
Vertex Pharmaceuticals Inc.a		23,574		1,681,769
				29,451,173
CAPITAL MARKETS — 2.23%
BlackRock Inc.c		12,753		3,836,230
Charles Schwab Corp. (The)		117,097		2,652,247
Franklin Resources Inc.		41,165		2,217,147
T. Rowe Price Group Inc.		26,340		2,038,979
				10,744,603
CHEMICALS — 3.45%
Ecolab Inc.		27,464		2,911,184
Monsanto Co.		53,981		5,661,527
PPG Industries Inc.		14,471		2,642,115
Praxair Inc.		29,856		3,723,342
Sherwin-Williams Co. (The)		8,839		1,661,732
				16,599,900
COMMUNICATIONS EQUIPMENT — 2.82%
Motorola Solutions Inc.		23,959		1,497,917
QUALCOMM Inc.		173,702		12,067,078
				13,564,995
COMPUTERS & PERIPHERALS — 11.04%
Apple Inc.		91,993		48,052,544
EMC Corp.		210,705		5,071,669
				53,124,213
CONSUMER FINANCE — 1.60%
American Express Co.		93,950		7,685,110
				7,685,110

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 0.40%
McGraw Hill Financial Inc.		27,866	$	1,941,703
				1,941,703
ENERGY EQUIPMENT & SERVICES — 4.38%
Baker Hughes Inc.		44,862		2,606,034
Cameron International Corp.a		24,921		1,367,166
Halliburton Co.		85,622		4,540,535
Schlumberger Ltd.		133,985		12,557,074
				21,070,809
FOOD & STAPLES RETAILING — 1.58%
Costco Wholesale Corp.		44,219		5,217,842
Whole Foods Market Inc.		37,721		2,381,327
				7,599,169
FOOD PRODUCTS — 0.66%
Hershey Co. (The)		15,141		1,502,593
Mead Johnson Nutrition Co. Class A		20,494		1,673,540
				3,176,133
HEALTH CARE EQUIPMENT & SUPPLIES — 0.31%
Intuitive Surgical Inc.a		4,020		1,493,430
				1,493,430
HEALTH CARE PROVIDERS & SERVICES — 1.07%
Express Scripts Holding Co.a		82,444		5,154,399
				5,154,399
HEALTH CARE TECHNOLOGY — 0.35%
Cerner Corp.a		29,879		1,674,120
				1,674,120
HOTELS, RESTAURANTS & LEISURE — 2.49%
Las Vegas Sands Corp.		39,257		2,756,627
Starbucks Corp.		76,086		6,166,770
Yum! Brands Inc.		45,184		3,055,342
				11,978,739
HOUSEHOLD PRODUCTS — 1.20%
Colgate-Palmolive Co.		89,239		5,776,440
				5,776,440
INDUSTRIAL CONGLOMERATES — 0.91%
Danaher Corp.		60,572		4,366,635
				4,366,635
INTERNET & CATALOG RETAIL — 3.97%
Amazon.com Inc.a,b		37,473		13,641,296
Priceline.com Inc.a,b		5,215		5,495,724
				19,137,020
INTERNET SOFTWARE & SERVICES — 10.17%
eBay Inc.a		117,975		6,218,462

18 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
Facebook Inc. Class Aa		165,221	$	8,304,008
Google Inc. Class Aa		28,326		29,192,209
LinkedIn Corp. Class Aa,b		9,194		2,056,422
Yahoo! Inc.a		96,084		3,164,046
				48,935,147
IT SERVICES — 6.01%
Accenture PLC Class A		65,296		4,799,256
Automatic Data Processing Inc.		48,889		3,665,208
Cognizant Technology Solutions Corp. Class Aa		30,516		2,652,756
MasterCard Inc. Class A		10,504		7,532,419
Visa Inc. Class A		52,269		10,279,744
				28,929,383
LIFE SCIENCES TOOLS & SERVICES — 0.35%
Agilent Technologies Inc.		33,495		1,700,206
				1,700,206
MEDIA — 9.11%
CBS Corp. Class B NVS		56,954		3,368,260
Comcast Corp. Class A		264,838		12,600,992
DIRECTVa		51,699		3,230,670
Discovery Communications Inc. Series Aa,b		23,377		2,078,683
Liberty Global PLC Series Aa		38,033		2,980,646
Sirius XM Radio Inc.b		319,063		1,202,867
Twenty-First Century Fox Inc. Class A		201,120		6,854,170
Walt Disney Co. (The)		168,230		11,538,896
				43,855,184
MULTILINE RETAIL — 0.36%
Dollar General Corp.a		30,148		1,741,951
				1,741,951
OIL, GAS & CONSUMABLE FUELS — 4.62%
Anadarko Petroleum Corp.		50,903		4,850,547
Cabot Oil & Gas Corp.		42,602		1,504,703
Continental Resources Inc.a		4,323		492,390
EOG Resources Inc.		27,584		4,920,985
Kinder Morgan Inc.		68,177		2,407,330
Noble Energy Inc.		36,368		2,725,054
Pioneer Natural Resources Co.		14,030		2,873,063
Williams Companies Inc. (The)		69,179		2,470,382
				22,244,454

Security	Shares		Value
PERSONAL PRODUCTS — 0.38%
Estee Lauder Companies Inc. (The) Class A		25,891	$	1,837,225
				1,837,225
PHARMACEUTICALS — 0.90%
Allergan Inc.		30,056		2,723,374
Zoetis Inc.		50,629		1,602,914
				4,326,288
REAL ESTATE INVESTMENT TRUSTS (REITs) — 4.15%
American Tower Corp.		39,997		3,173,762
AvalonBay Communities Inc.		12,317		1,540,241
Boston Properties Inc.b		15,430		1,597,005
Equity Residential		33,934		1,776,784
General Growth Properties Inc.		56,091		1,190,812
Health Care REIT Inc.		29,036		1,882,985
Prologis Inc.		50,488		2,016,995
Simon Property Group Inc.		31,424		4,856,579
Ventas Inc.		29,692		1,937,106
				19,972,269
ROAD & RAIL — 1.48%
Union Pacific Corp.		46,967		7,110,804
				7,110,804
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.31%
Broadcom Corp. Class A		55,697		1,488,224
				1,488,224
SOFTWARE — 4.25%
Adobe Systems Inc.a		47,299		2,563,606
Intuit Inc.		30,067		2,147,084
Oracle Corp.		361,061		12,095,544
Salesforce.com Inc.a,b		55,521		2,962,601
VMware Inc. Class Aa,b		8,698		706,973
				20,475,808
SPECIALTY RETAIL — 5.39%
AutoZone Inc.a,b		3,596		1,563,145
Bed Bath & Beyond Inc.a		22,050		1,704,906
Home Depot Inc. (The)		145,047		11,297,711
Lowe’s Companies Inc.		106,502		5,301,670
Ross Stores Inc.		21,941		1,697,136
TJX Companies Inc. (The)		72,424		4,402,655
				25,967,223
TEXTILES, APPAREL & LUXURY GOODS — 2.10%
Coach Inc.		28,548		1,446,812
Nike Inc. Class B		75,730		5,737,305

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
Ralph Lauren Corp.		6,134	$	1,016,036
VF Corp.		8,904		1,914,360
				10,114,513
TRADING COMPANIES & DISTRIBUTORS — 0.64%
Fastenal Co.		27,655		1,377,219
W.W. Grainger Inc.		6,262		1,684,290
				3,061,509
WIRELESS TELECOMMUNICATION SERVICES — 0.47%
Crown Castle International Corp.a		29,685		2,256,654
				2,256,654
TOTAL COMMON STOCKS
(Cost: $314,285,439)				480,401,958
SHORT-TERM INVESTMENTS — 1.43%
MONEY MARKET FUNDS — 1.43%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		5,695,808		5,695,808
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		331,023		331,023
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		827,695		827,695
				6,854,526
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,854,526)				6,854,526
TOTAL INVESTMENTS IN SECURITIES — 101.23%
(Cost: $321,139,965)				487,256,484
Other Assets, Less Liabilities — (1.23)%				(5,910,462	)
NET ASSETS — 100.00%			$	481,346,022

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

20 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.78%
AEROSPACE & DEFENSE — 2.67%
General Dynamics Corp.		20,782	$	1,800,345
Lockheed Martin Corp.		16,866		2,248,912
Northrop Grumman Corp.		14,390		1,547,069
Raytheon Co.		20,168		1,661,238
				7,257,564
AIRLINES — 0.52%
Delta Air Lines Inc.		53,648		1,415,234
				1,415,234
AUTO COMPONENTS — 0.73%
Johnson Controls Inc.		42,779		1,974,251
				1,974,251
AUTOMOBILES — 2.35%
Ford Motor Co.		246,373		4,215,442
General Motors Co.a		58,860		2,174,877
				6,390,319
CAPITAL MARKETS — 4.03%
Bank of New York Mellon Corp. (The)		71,951		2,288,042
Goldman Sachs Group Inc. (The)		26,118		4,201,342
Morgan Stanley		86,958		2,498,303
State Street Corp.		27,887		1,954,042
				10,941,729
CHEMICALS — 1.10%
Dow Chemical Co. (The)		75,682		2,987,169
				2,987,169
COMMERCIAL BANKS — 7.00%
BB&T Corp.		44,016		1,495,224
Fifth Third Bancorp		55,471		1,055,613
PNC Financial Services Group Inc. (The)b		33,241		2,444,211
SunTrust Banks Inc.		33,700		1,133,668
Wells Fargo & Co.		302,170		12,899,637
				19,028,353
COMMERCIAL SERVICES & SUPPLIES — 0.44%
Waste Management Inc.		27,263		1,187,031
				1,187,031
COMMUNICATIONS EQUIPMENT — 2.78%
Cisco Systems Inc.		335,299		7,544,227
				7,544,227
COMPUTERS & PERIPHERALS — 1.08%
Hewlett-Packard Co.		120,180		2,928,787
				2,928,787

Security	Shares		Value
CONSUMER FINANCE — 0.92%
Capital One Financial Corp.		36,599	$	2,513,253
				2,513,253
DIVERSIFIED FINANCIAL SERVICES — 7.88%
Citigroup Inc.		190,169		9,276,444
J.P. Morgan Chase & Co.		235,394		12,132,207
				21,408,651
DIVERSIFIED TELECOMMUNICATION SERVICES — 8.22%
AT&T Inc.		332,131		12,023,142
CenturyLink Inc.		37,565		1,271,951
Verizon Communications Inc.		178,951		9,038,815
				22,333,908
ELECTRIC UTILITIES — 5.41%
American Electric Power Co. Inc.		30,437		1,425,669
Duke Energy Corp.		44,142		3,166,306
Edison International		20,374		998,937
Exelon Corp.		53,572		1,528,945
FirstEnergy Corp.		26,158		990,603
NextEra Energy Inc.		26,558		2,250,791
PPL Corp.		39,509		1,210,161
Southern Co. (The)		54,647		2,235,609
Xcel Energy Inc.		31,119		898,094
				14,705,115
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.57%
Corning Inc.		91,331		1,560,847
				1,560,847
FOOD PRODUCTS — 1.54%
Archer-Daniels-Midland Co.		41,217		1,685,775
Campbell Soup Co.		11,183		476,060
Kraft Foods Group Inc.		37,238		2,025,003
				4,186,838
HEALTH CARE PROVIDERS & SERVICES — 2.37%
Aetna Inc.		23,266		1,458,778
Cardinal Health Inc.		21,228		1,245,234
Cigna Corp.		17,689		1,361,699
HCA Holdings Inc.		16,784		791,198
WellPoint Inc.		18,701		1,585,845
				6,442,754
INDUSTRIAL CONGLOMERATES — 6.13%
General Electric Co.		636,858		16,647,468
				16,647,468
INSURANCE — 5.18%
ACE Ltd.		21,264		2,029,436

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
Aflac Inc.		29,080	$	1,889,618
Allstate Corp. (The)		28,985		1,537,944
Loews Corp.		19,128		924,074
MetLife Inc.		70,035		3,313,356
Prudential Financial Inc.		29,074		2,366,333
Travelers Companies Inc. (The)		23,355		2,015,537
				14,076,298
METALS & MINING — 1.19%
Freeport-McMoRan Copper & Gold Inc.		64,907		2,385,981
Newmont Mining Corp.		31,126		848,495
				3,234,476
MULTI-UTILITIES — 2.54%
Consolidated Edison Inc.		18,315		1,066,299
Dominion Resources Inc.		36,210		2,308,388
PG&E Corp.		27,851		1,165,564
Public Service Enterprise Group Inc.		31,628		1,059,538
Sempra Energy		14,206		1,294,735
				6,894,524
OIL, GAS & CONSUMABLE FUELS — 20.91%
Apache Corp.		25,249		2,242,111
Chevron Corp.		120,819		14,493,447
ConocoPhillips		76,486		5,606,424
Devon Energy Corp.		23,868		1,508,935
Exxon Mobil Corp.		275,263		24,669,070
Hess Corp.		18,040		1,464,848
Marathon Oil Corp.		44,381		1,564,874
Marathon Petroleum Corp.		19,575		1,402,745
Phillips 66		38,214		2,462,128
Valero Energy Corp.		33,897		1,395,539
				56,810,121
PAPER & FOREST PRODUCTS — 0.46%
International Paper Co.		27,886		1,243,994
				1,243,994
PHARMACEUTICALS — 8.85%
Eli Lilly and Co.		62,005		3,089,089
Merck & Co. Inc.		182,999		8,251,425
Pfizer Inc.		414,014		12,701,949
				24,042,463
REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.26%
Annaly Capital Management Inc.		59,243		698,475
				698,475

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.80%
Intel Corp.		311,559	$	7,611,386
				7,611,386
TOBACCO — 1.72%
Altria Group Inc.		125,355		4,666,967
				4,666,967
WIRELESS TELECOMMUNICATION SERVICES — 0.13%
Sprint Corp.a,c		53,652		361,078
				361,078
TOTAL COMMON STOCKS
(Cost: $256,745,899)				271,093,280
SHORT-TERM INVESTMENTS — 0.24%
MONEY MARKET FUNDS — 0.24%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,d,e		417,092		417,092
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,d,e		24,240		24,240
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,d		226,047		226,047
				667,379
TOTAL SHORT-TERM INVESTMENTS
(Cost: $667,379)				667,379
TOTAL INVESTMENTS IN SECURITIES — 100.02%
(Cost: $257,413,278)				271,760,659
Other Assets, Less Liabilities — (0.02)%				(65,767	)
NET ASSETS — 100.00%			$	271,694,892

^a Non-income earning security.

^b Affiliated issuer. See Note 2.

^c All or a portion of this security represents a security on loan. See Note 5.

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

^e All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

22 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR MID-CAP ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.89%
AEROSPACE & DEFENSE — 0.92%
Textron Inc.		50,252	$	1,446,755
Triumph Group Inc.		9,322		667,921
				2,114,676
AIR FREIGHT & LOGISTICS — 0.73%
Expeditors International of Washington Inc.		36,975		1,674,598
				1,674,598
AIRLINES — 1.33%
Alaska Air Group Inc.		12,510		883,957
Southwest Airlines Co.		126,507		2,178,450
				3,062,407
AUTO COMPONENTS — 0.10%
Allison Transmission Holdings Inc.		9,690		235,952
				235,952
BEVERAGES — 2.44%
Beam Inc.		29,005		1,952,037
Constellation Brands Inc. Class Aa		29,709		1,939,998
Dr Pepper Snapple Group Inc.		36,467		1,726,712
				5,618,747
CAPITAL MARKETS — 4.53%
Eaton Vance Corp. NVS		21,742		909,033
Invesco Ltd.		79,318		2,676,983
LPL Financial Holdings Inc.		14,514		591,300
Northern Trust Corp.		40,434		2,281,286
Raymond James Financial Inc.		22,051		1,006,628
SEI Investments Co.		25,950		861,281
TD Ameritrade Holding Corp.		42,392		1,155,606
Waddell & Reed Financial Inc. Class A		15,357		948,295
				10,430,412
CHEMICALS — 4.37%
Airgas Inc.		11,852		1,292,698
Albemarle Corp.		14,580		965,050
Cytec Industries Inc.		6,529		542,495
International Flavors & Fragrances Inc.		14,644		1,210,326
NewMarket Corp.		2,052		638,911
Rockwood Holdings Inc.		13,918		880,313
Sigma-Aldrich Corp.		21,539		1,861,616
Valspar Corp. (The)		14,444		1,010,647
W.R. Grace & Co.a		13,731		1,258,583

Security	Shares		Value
Westlake Chemical Corp.		3,600	$	386,712
				10,047,351
COMMERCIAL BANKS — 1.25%
CIT Group Inc.a		36,051		1,736,216
First Republic Bank		22,214		1,134,469
				2,870,685
COMMERCIAL SERVICES & SUPPLIES — 1.35%
ADT Corp. (The)		35,828		1,553,860
Cintas Corp.		18,410		989,906
KAR Auction Services Inc.		19,275		572,853
				3,116,619
COMMUNICATIONS EQUIPMENT — 0.89%
EchoStar Corp. Class Aa		7,232		346,847
Juniper Networks Inc.a		90,793		1,692,381
				2,039,228
COMPUTERS & PERIPHERALS — 1.77%
NCR Corp.a,b		29,740		1,086,997
SanDisk Corp.		43,059		2,992,601
				4,079,598
CONSTRUCTION & ENGINEERING — 2.07%
Fluor Corp.		29,204		2,167,521
Jacobs Engineering Group Inc.a		23,552		1,432,432
Quanta Services Inc.a		38,295		1,156,892
				4,756,845
CONSTRUCTION MATERIALS — 0.54%
Vulcan Materials Co.		23,284		1,246,858
				1,246,858
CONTAINERS & PACKAGING — 1.52%
AptarGroup Inc.		11,878		762,093
Ball Corp.		25,996		1,270,944
MeadWestvaco Corp.		31,808		1,108,509
Silgan Holdings Inc.		7,856		354,070
				3,495,616
DISTRIBUTORS — 0.95%
Genuine Parts Co.		27,739		2,186,665
				2,186,665
DIVERSIFIED CONSUMER SERVICES — 0.30%
Service Corp. International		37,982		684,056
				684,056
ELECTRICAL EQUIPMENT — 2.18%
Babcock & Wilcox Co. (The)		19,890		640,657
Hubbell Inc. Class B		9,671		1,040,019
Regal Beloit Corp.		8,066		591,480

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

October 31, 2013

Security	Shares		Value
Rockwell Automation Inc.		24,839	$	2,742,474
				5,014,630
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.45%
Dolby Laboratories Inc. Class A		8,740		312,368
FLIR Systems Inc.		25,459		725,072
				1,037,440
ENERGY EQUIPMENT & SERVICES — 1.72%
Atwood Oceanics Inc.a		10,318		548,195
Diamond Offshore Drilling Inc.		12,457		771,462
Oil States International Inc.a		9,882		1,073,482
Rowan Companies PLC Class Aa		22,257		803,033
Superior Energy Services Inc.a		28,593		767,150
				3,963,322
FOOD PRODUCTS — 2.82%
Flowers Foods Inc.		31,340		794,156
Hormel Foods Corp.		24,117		1,048,125
Ingredion Inc.		13,893		913,604
J.M. Smucker Co. (The)		18,831		2,094,195
McCormick & Co. Inc. NVS		23,644		1,634,982
				6,485,062
GAS UTILITIES — 1.37%
National Fuel Gas Co.		14,982		1,071,962
ONEOK Inc.		36,937		2,086,941
				3,158,903
HEALTH CARE EQUIPMENT & SUPPLIES — 3.41%
C.R. Bard Inc.		14,179		1,931,463
CareFusion Corp.a		38,405		1,488,962
Hologic Inc.a		48,455		1,084,908
Teleflex Inc.		7,367		679,090
Zimmer Holdings Inc.		30,370		2,656,464
				7,840,887
HEALTH CARE PROVIDERS & SERVICES — 4.28%
AmerisourceBergen Corp.		41,377		2,703,159
Henry Schein Inc.a,b		15,494		1,741,991
Laboratory Corp. of America Holdingsa		16,141		1,628,627
MEDNAX Inc.a		9,071		988,920
Patterson Companies Inc.		14,900		633,399
Tenet Healthcare Corp.a		18,208		859,236
Universal Health Services Inc. Class B		16,009		1,289,685
				9,845,017

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 2.22%
International Game Technology		46,730	$	878,524
MGM Resorts Internationala		59,646		1,135,660
Penn National Gaming Inc.a		12,294		719,322
SeaWorld Entertainment Inc.		4,670		140,240
Six Flags Entertainment Corp.		17,125		644,071
Wyndham Worldwide Corp.		23,819		1,581,582
				5,099,399
HOUSEHOLD DURABLES — 3.02%
D.R. Horton Inc.		50,902		964,593
Harman International Industries Inc.		12,198		988,282
Jarden Corp.a		21,183		1,172,691
Leggett & Platt Inc.		25,448		756,823
Lennar Corp. Class A		29,740		1,057,257
PulteGroup Inc.		62,622		1,105,278
Toll Brothers Inc.a		27,235		895,487
				6,940,411
HOUSEHOLD PRODUCTS — 0.92%
Clorox Co. (The)		23,364		2,107,199
				2,107,199
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.57%
Calpine Corp.a		65,249		1,316,072
				1,316,072
INDUSTRIAL CONGLOMERATES — 0.36%
Carlisle Companies Inc.		11,433		830,950
				830,950
INSURANCE — 2.60%
Alleghany Corp.a		3,015		1,222,341
Arch Capital Group Ltd.a		21,035		1,219,189
Arthur J. Gallagher & Co.		22,880		1,085,656
Brown & Brown Inc.		21,293		679,886
Erie Indemnity Co. Class A		4,449		319,527
W.R. Berkley Corp.		19,640		862,392
White Mountains Insurance Group Ltd.		997		582,318
				5,971,309
INTERNET & CATALOG RETAIL — 1.51%
Expedia Inc.		19,249		1,133,381
Liberty Interactive Corp. Series Aa		86,697		2,337,351
				3,470,732
INTERNET SOFTWARE & SERVICES — 0.32%
IAC/InterActiveCorp		13,679		730,322
				730,322

24 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

October 31, 2013

Security	Shares		Value
IT SERVICES — 4.21%
Fidelity National Information Services Inc.		52,324	$	2,550,795
Fiserv Inc.a		23,302		2,440,418
Global Payments Inc.		13,544		805,597
Paychex Inc.		58,274		2,462,659
Total System Services Inc.		29,867		890,933
Vantiv Inc. Class Aa		19,463		535,233
				9,685,635
LIFE SCIENCES TOOLS & SERVICES — 1.61%
Bio-Rad Laboratories Inc. Class Aa		3,595		444,054
Life Technologies Corp.a		30,928		2,329,188
PerkinElmer Inc.		20,074		763,615
Quintiles Transnational Holdings Inc.a		4,187		175,812
				3,712,669
MACHINERY — 6.97%
AGCO Corp.		16,220		946,924
Dover Corp.		30,571		2,806,112
Flowserve Corp.		25,190		1,749,949
IDEX Corp.		14,650		1,013,047
Lincoln Electric Holdings Inc.		14,729		1,019,836
Pall Corp.		20,034		1,613,138
Pentair Ltd. Registered		35,673		2,393,302
Snap-on Inc.		10,422		1,084,617
Stanley Black & Decker Inc.		28,674		2,267,827
Wabtec Corp.		17,248		1,124,397
				16,019,149
MEDIA — 2.79%
Charter Communications Inc. Class Aa		12,080		1,621,619
Cinemark Holdings Inc.		18,606		610,463
Interpublic Group of Companies Inc. (The)		75,630		1,270,584
Liberty Media Corp.a		18,996		2,904,678
				6,407,344
METALS & MINING — 0.28%
Allegheny Technologies Inc.		19,337		640,055
				640,055
MULTILINE RETAIL — 1.20%
Family Dollar Stores Inc.		17,306		1,192,037
Nordstrom Inc.		25,836		1,562,303
				2,754,340

Security	Shares		Value
OIL, GAS & CONSUMABLE FUELS — 2.96%
Chesapeake Energy Corp.		90,752	$	2,537,426
Denbury Resources Inc.a		66,809		1,268,703
QEP Resources Inc.		32,125		1,062,052
Ultra Petroleum Corp.a,b		27,394		502,954
Whiting Petroleum Corp.a		21,389		1,430,710
				6,801,845
PERSONAL PRODUCTS — 1.03%
Coty Inc. Class A		10,360		159,337
Herbalife Ltd.b		15,142		981,504
Nu Skin Enterprises Inc. Class A		10,511		1,229,051
				2,369,892
PHARMACEUTICALS — 2.09%
Actavis PLCa		31,040		4,798,163
				4,798,163
PROFESSIONAL SERVICES — 1.19%
Equifax Inc.		21,728		1,405,150
Towers Watson & Co. Class A		11,531		1,323,874
				2,729,024
REAL ESTATE INVESTMENT TRUSTS (REITs) — 7.53%
Apartment Investment and Management Co. Class A		26,146		731,565
BRE Properties Inc. Class A		13,828		755,147
Corrections Corp. of America		20,734		767,158
Douglas Emmett Inc.		23,230		579,124
Federal Realty Investment Trust		11,770		1,219,372
Highwoods Properties Inc.		16,097		621,344
Home Properties Inc.b		10,192		614,680
Kimco Realty Corp.		73,385		1,576,310
Liberty Property Trustb		25,599		952,027
Omega Healthcare Investors Inc.b		20,996		697,907
Plum Creek Timber Co. Inc.		29,200		1,325,680
Rayonier Inc.		22,595		1,062,417
Realty Income Corp.		35,132		1,463,248
Regency Centers Corp.b		16,538		854,353
SL Green Realty Corp.		16,467		1,557,284
Taubman Centers Inc.		11,439		752,572
UDR Inc.b		44,924		1,114,564
WP Carey Inc.		10,027		667,898
				17,312,650
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.58%
Forest City Enterprises Inc. Class Aa		28,304		573,439
Jones Lang LaSalle Inc.		7,959		757,697
				1,331,136

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

October 31, 2013

Security	Shares		Value
ROAD & RAIL — 0.67%
Hertz Global Holdings Inc.a		66,894	$	1,535,886
				1,535,886
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 7.46%
Analog Devices Inc.		55,652		2,743,644
Avago Technologies Ltd.b		44,230		2,009,369
Lam Research Corp.a		29,227		1,584,980
Linear Technology Corp.		41,775		1,718,624
LSI Corp.		98,033		831,320
Maxim Integrated Products Inc.		52,144		1,548,677
Microchip Technology Inc.		35,347		1,518,507
NVIDIA Corp.		103,651		1,573,422
Skyworks Solutions Inc.a		33,640		867,239
Teradyne Inc.a,b		34,315		600,169
Xilinx Inc.		47,701		2,166,579
				17,162,530
SOFTWARE — 1.06%
Electronic Arts Inc.a		54,930		1,441,913
Synopsys Inc.a		27,665		1,008,389
				2,450,302
SPECIALTY RETAIL — 2.47%
Abercrombie & Fitch Co. Class A		13,666		512,202
Advance Auto Parts Inc.		13,050		1,294,299
American Eagle Outfitters Inc.		30,479		472,120
AutoNation Inc.a		11,526		555,899
Foot Locker Inc.		26,607		923,263
Signet Jewelers Ltd.b		14,428		1,077,194
Williams-Sonoma Inc.		15,948		836,313
				5,671,290
TEXTILES, APPAREL & LUXURY GOODS — 0.53%
Hanesbrands Inc.		17,738		1,208,313
				1,208,313
THRIFTS & MORTGAGE FINANCE — 0.36%
People’s United Financial Inc.		57,539		830,288
				830,288
TRADING COMPANIES & DISTRIBUTORS — 0.76%
United Rentals Inc.a,b		16,714		1,079,557
WESCO International Inc.a		7,914		676,331
				1,755,888
WATER UTILITIES — 0.94%
American Water Works Co. Inc.		31,883		1,366,824
Aqua America Inc.		31,621		796,217
				2,163,041

Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 0.39%
T-Mobile US Inc.		32,554	$	902,722
				902,722
TOTAL COMMON STOCKS
(Cost: $179,935,914)				229,714,130
SHORT-TERM INVESTMENTS — 4.19%
MONEY MARKET FUNDS — 4.19%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		8,956,029		8,956,029
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		520,497		520,497
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		168,724		168,724
				9,645,250
TOTAL SHORT-TERM INVESTMENTS
(Cost: $9,645,250)				9,645,250
TOTAL INVESTMENTS IN SECURITIES — 104.08%
(Cost: $189,581,164)				239,359,380
Other Assets, Less Liabilities — (4.08)%				(9,380,500	)
NET ASSETS — 100.00%			$	229,978,880

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

26 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.97%
AEROSPACE & DEFENSE — 1.15%
B/E Aerospace Inc.a		13,600	$	1,103,776
TransDigm Group Inc.		6,819		991,551
				2,095,327
AIR FREIGHT & LOGISTICS — 0.72%
C.H. Robinson Worldwide Inc.		22,008		1,314,758
				1,314,758
AUTO COMPONENTS — 1.22%
BorgWarner Inc.		15,806		1,630,073
Gentex Corp.		19,945		587,181
				2,217,254
AUTOMOBILES — 2.07%
Harley-Davidson Inc.		30,799		1,972,368
Tesla Motors Inc.a,b		11,236		1,797,086
				3,769,454
BEVERAGES — 0.59%
Monster Beverage Corp.a		18,721		1,071,403
				1,071,403
BIOTECHNOLOGY — 2.49%
ARIAD Pharmaceuticals Inc.a,b		25,603		56,327
BioMarin Pharmaceutical Inc.a		19,344		1,215,190
Medivation Inc.a		10,387		621,766
Pharmacyclics Inc.a		9,190		1,090,301
Seattle Genetics Inc.a		15,307		591,309
Theravance Inc.a		10,678		391,242
United Therapeutics Corp.a		6,352		562,279
				4,528,414
BUILDING PRODUCTS — 1.29%
A.O. Smith Corp.		10,748		555,134
Armstrong World Industries Inc.a		4,754		254,006
Fortune Brands Home & Security Inc.		22,919		987,351
Owens Corninga		15,275		548,831
				2,345,322
CAPITAL MARKETS — 0.79%
Affiliated Managers Group Inc.a		7,297		1,440,720
				1,440,720
CHEMICALS — 0.75%
FMC Corp.		18,827		1,369,853
				1,369,853
COMMERCIAL BANKS — 0.70%
Signature Banka		6,529		664,783

Security	Shares		Value
SVB Financial Groupa		6,295	$	602,935
				1,267,718
COMMERCIAL SERVICES & SUPPLIES — 2.17%
Clean Harbors Inc.a		7,626		470,905
Copart Inc.a		15,443		497,728
Iron Mountain Inc.		23,481		623,186
Rollins Inc.		8,827		243,978
Stericycle Inc.a		11,859		1,378,016
Waste Connections Inc.		17,048		728,632
				3,942,445
COMMUNICATIONS EQUIPMENT — 0.63%
F5 Networks Inc.a		10,811		881,204
Palo Alto Networks Inc.a		6,155		259,495
				1,140,699
COMPUTERS & PERIPHERALS — 1.45%
3D Systems Corp.a,b		13,046		811,983
NetApp Inc.		46,957		1,822,401
				2,634,384
CONSTRUCTION MATERIALS — 0.63%
Eagle Materials Inc.		6,854		514,118
Martin Marietta Materials Inc.		6,386		626,403
				1,140,521
DISTRIBUTORS — 0.75%
LKQ Corp.a		41,437		1,368,664
				1,368,664
DIVERSIFIED FINANCIAL SERVICES — 2.96%
CBOE Holdings Inc.		12,119		587,772
ING U.S. Inc.		8,953		277,722
IntercontinentalExchange Inc.a,b		10,058		1,938,478
Moody’s Corp.		26,779		1,892,204
MSCI Inc. Class Aa		16,700		680,859
				5,377,035
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.72%
Level 3 Communications Inc.a		22,145		676,530
tw telecom inc.a		20,119		634,151
				1,310,681
ELECTRIC UTILITIES — 0.40%
ITC Holdings Corp.		7,242		728,473
				728,473
ELECTRICAL EQUIPMENT — 2.54%
Acuity Brands Inc.		5,920		595,019
AMETEK Inc.		33,720		1,612,828
Roper Industries Inc.		13,694		1,736,536

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
Sensata Technologies Holding NVa		17,646	$	664,019
				4,608,402
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.96%
Amphenol Corp. Class A		21,975		1,764,373
CDW Corpa		3,307		72,721
IPG Photonics Corp.b		4,742		314,252
National Instruments Corp.		13,468		391,245
Trimble Navigation Ltd.a		35,444		1,012,635
				3,555,226
ENERGY EQUIPMENT & SERVICES — 2.98%
Core Laboratories NV		6,339		1,186,788
Dresser-Rand Group Inc.a		10,528		639,787
Dril-Quip Inc.a		5,604		658,022
FMC Technologies Inc.a		32,710		1,653,490
Oceaneering International Inc.		14,938		1,282,875
				5,420,962
FOOD PRODUCTS — 0.63%
Green Mountain Coffee Roasters Inc.a,b		18,107		1,137,301
				1,137,301
HEALTH CARE EQUIPMENT & SUPPLIES — 3.44%
Cooper Companies Inc. (The)		6,758		873,201
DENTSPLY International Inc.		19,644		925,232
Edwards Lifesciences Corp.a		15,501		1,010,510
IDEXX Laboratories Inc.a		7,254		782,416
ResMed Inc.b		19,612		1,014,725
Sirona Dental Systems Inc.a		7,855		567,524
Varian Medical Systems Inc.a		14,863		1,078,757
				6,252,365
HEALTH CARE PROVIDERS & SERVICES — 0.96%
Brookdale Senior Living Inc.a		13,822		374,300
DaVita HealthCare Partners Inc.a		24,363		1,369,444
				1,743,744
HEALTH CARE TECHNOLOGY — 0.37%
athenahealth Inc.a		5,092		679,833
				679,833
HOTELS, RESTAURANTS & LEISURE — 5.27%
Burger King Worldwide Inc.		8,198		173,634
Chipotle Mexican Grill Inc.a		4,263		2,246,473
Dunkin’ Brands Group Inc.		14,683		700,085
Hyatt Hotels Corp. Class Aa		8,037		382,561
Marriott International Inc. Class A		31,395		1,415,287

Security	Shares		Value
Norwegian Cruise Line Holdings Ltd.a		6,444	$	206,337
Panera Bread Co. Class Aa		3,869		610,992
Starwood Hotels & Resorts Worldwide Inc.		26,916		1,981,556
Wynn Resorts Ltd.		11,167		1,856,514
				9,573,439
HOUSEHOLD DURABLES — 0.91%
Mohawk Industries Inc.a		8,410		1,113,652
NVR Inc.a		589		540,302
				1,653,954
HOUSEHOLD PRODUCTS — 0.69%
Church & Dwight Co. Inc.		19,131		1,246,385
				1,246,385
INSURANCE — 0.56%
Markel Corp.a		1,933		1,023,852
				1,023,852
INTERNET & CATALOG RETAIL — 2.54%
Groupon Inc.a		51,477		469,985
HSN Inc.		4,605		241,302
Netflix Inc.a		8,136		2,623,697
TripAdvisor Inc.a		15,398		1,273,569
				4,608,553
INTERNET SOFTWARE & SERVICES — 2.42%
Akamai Technologies Inc.a		24,598		1,100,514
AOL Inc.		10,642		385,666
Equinix Inc.a		6,815		1,100,486
Rackspace Hosting Inc.a		15,729		805,797
VeriSign Inc.a		18,634		1,011,454
				4,403,917
IT SERVICES — 3.28%
Alliance Data Systems Corp.a,b		6,730		1,595,414
FleetCor Technologies Inc.a		10,056		1,159,959
Gartner Inc.a		12,861		758,156
Genpact Ltd.a		15,449		306,354
Jack Henry & Associates Inc.		11,777		643,142
Teradata Corp.a		22,519		992,412
WEX Inc.a		5,376		501,850
				5,957,287
LEISURE EQUIPMENT & PRODUCTS — 0.64%
Polaris Industries Inc.		8,841		1,157,729
				1,157,729

28 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
LIFE SCIENCES TOOLS & SERVICES — 2.48%
Covance Inc.a		7,717	$	688,819
Illumina Inc.a,b		17,275		1,615,385
Mettler-Toledo International Inc.a		4,135		1,023,247
Waters Corp.a		11,766		1,187,425
				4,514,876
MACHINERY — 2.17%
Colfax Corp.a		12,225		684,111
Donaldson Co. Inc.		18,664		739,281
Graco Inc.		8,474		654,701
Nordson Corp.		8,338		601,087
Valmont Industries Inc.		3,702		520,131
WABCO Holdings Inc.a		8,643		740,532
				3,939,843
MARINE — 0.38%
Kirby Corp.a		7,837		693,496
				693,496
MEDIA — 1.83%
AMC Networks Inc. Class Aa		8,181		573,406
Lamar Advertising Co. Class Aa		9,027		412,624
Lions Gate Entertainment Corp.a		11,205		387,469
Madison Square Garden Inc. Class Aa		8,437		510,607
Morningstar Inc.		2,936		235,732
Scripps Networks Interactive Inc. Class A		15,105		1,215,953
				3,335,791
METALS & MINING — 0.24%
Royal Gold Inc.		9,004		432,552
				432,552
MULTILINE RETAIL — 0.99%
Dollar Tree Inc.a		30,791		1,798,194
				1,798,194
OIL, GAS & CONSUMABLE FUELS — 6.77%
Cheniere Energy Inc.a		30,652		1,219,950
Cobalt International Energy Inc.a		40,879		948,801
Concho Resources Inc.a		14,460		1,599,421
CONSOL Energy Inc.		31,596		1,153,254
EQT Corp.		20,793		1,780,089
Gulfport Energy Corp.a		10,706		628,335
Oasis Petroleum Inc.a		12,276		653,697
Range Resources Corp.		22,560		1,708,018
SM Energy Co.		9,240		818,756

Security	Shares		Value
Southwestern Energy Co.a		48,534	$	1,806,435
				12,316,756
PHARMACEUTICALS — 2.53%
Forest Laboratories Inc.a		32,615		1,533,883
Jazz Pharmaceuticals PLCa		7,365		668,300
Perrigo Co.		12,994		1,791,743
Salix Pharmaceuticals Ltd.a		8,521		611,382
				4,605,308
PROFESSIONAL SERVICES — 2.34%
IHS Inc. Class Aa		8,525		929,651
Nielsen Holdings NV		29,678		1,170,500
Robert Half International Inc.		19,169		738,582
Verisk Analytics Inc. Class Aa		20,691		1,417,747
				4,256,480
REAL ESTATE INVESTMENT TRUSTS (REITs) — 4.49%
American Campus Communities Inc.		14,487		500,671
Camden Property Trust		11,771		755,698
Digital Realty Trust Inc.b		17,731		845,059
Equity Lifestyle Properties, Inc.		10,973		416,864
Essex Property Trust Inc.		5,251		845,411
Extra Space Storage Inc.		14,645		673,524
Host Hotels & Resorts Inc.		103,558		1,921,001
Kilroy Realty Corp.		11,221		596,508
Macerich Co. (The)		19,403		1,148,852
Tanger Factory Outlet Centers Inc.		13,072		455,559
				8,159,147
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.22%
CBRE Group Inc. Class Aa		38,280		889,245
Howard Hughes Corp. (The)a		4,324		506,124
Realogy Holdings Corp.a		20,160		829,382
				2,224,751
ROAD & RAIL — 2.11%
Genesee & Wyoming Inc. Class Aa		5,904		589,455
J.B. Hunt Transport Services Inc.		12,607		945,903
Kansas City Southern Industries Inc.		15,218		1,849,292
Old Dominion Freight Line Inc.a		9,661		453,101
				3,837,751
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.26%
Altera Corp.		44,109		1,482,062
Cree Inc.a		16,582		1,007,357
Freescale Semiconductor Ltd.a,b		7,422		114,596

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
KLA-Tencor Corp.		22,882	$	1,501,059
				4,105,074
SOFTWARE — 7.54%
ANSYS Inc.a		12,762		1,116,037
Autodesk Inc.a		30,789		1,228,789
Cadence Design Systems Inc.a		39,244		508,995
Check Point Software Technologies Ltd.a,b		20,883		1,211,632
Citrix Systems Inc.a		25,872		1,469,012
CommVault Systems Inc.a		6,070		473,946
Concur Technologies Inc.a		6,497		679,586
FactSet Research Systems Inc.b		5,568		606,578
Informatica Corp.a		14,951		577,108
MICROS Systems Inc.a		10,589		574,453
NetSuite Inc.a		4,181		421,779
Nuance Communications Inc.a		36,410		566,540
Red Hat Inc.a		26,136		1,130,905
ServiceNow Inc.a		13,787		752,908
SolarWinds Inc.a		9,010		326,072
Solera Holdings Inc.		9,514		534,877
Splunk Inc.a		11,035		692,005
TIBCO Software Inc.a		21,111		518,486
Workday Inc. Class Aa,b		4,277		320,219
				13,709,927
SPECIALTY RETAIL — 6.51%
Ascena Retail Group Inc.a		17,658		349,452
Cabela’s Inc.a		6,449		382,555
CarMax Inc.a		30,868		1,450,487
Chico’s FAS Inc.		22,290		382,273
Dick’s Sporting Goods Inc.		14,036		746,855
GNC Holdings Inc. Class A		13,590		799,364
O’Reilly Automotive Inc.a		14,988		1,855,664
PetSmart Inc.		14,346		1,043,815
Sally Beauty Holdings Inc.a		20,649		543,482
Tiffany & Co.		15,192		1,202,751
Tractor Supply Co.		19,277		1,375,414
Ulta Salon, Cosmetics & Fragrance Inc.a		8,804		1,134,395
Urban Outfitters Inc.a		15,068		570,776
				11,837,283
TEXTILES, APPAREL & LUXURY GOODS — 3.66%
Carter’s Inc.		8,180		565,647
Fossil Group Inc.a		6,938		880,710
Lululemon Athletica Inc.a,b		14,564		1,005,644
Michael Kors Holdings Ltd.a		24,671		1,898,433

Security	Shares		Value
PVH Corp.		11,263	$	1,403,032
Under Armour Inc. Class Aa,b		11,068		898,168
				6,651,634
THRIFTS & MORTGAGE FINANCE — 0.65%
Nationstar Mortgage Holdings Inc.a		2,861		146,827
Ocwen Financial Corp.a		16,119		906,371
TFS Financial Corp.a		10,989		133,406
				1,186,604
TRADING COMPANIES & DISTRIBUTORS — 0.28%
MSC Industrial Direct Co. Inc. Class A		6,662		508,777
				508,777
WIRELESS TELECOMMUNICATION SERVICES — 0.85%
SBA Communications Corp. Class Aa		17,643		1,543,233
				1,543,233
TOTAL COMMON STOCKS
(Cost: $132,894,869)				181,743,551
SHORT-TERM INVESTMENTS — 7.73%
MONEY MARKET FUNDS — 7.73%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		13,204,214		13,204,214
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		767,389		767,389
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		80,920		80,920
				14,052,523
TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,052,523)				14,052,523

30 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 107.70%
(Cost: $146,947,392)	$	195,796,074
Other Assets, Less Liabilities — (7.70)%		(13,994,800	)
NET ASSETS — 100.00%	$	181,801,274

^a Non-income earning security.

^b All or a portion of this security represents a security on loan. See Note 5.

^c Affiliated issuer. See Note 2.

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

^e All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.85%
AEROSPACE & DEFENSE — 1.40%
L-3 Communications Holdings Inc.		10,407	$	1,045,383
Rockwell Collins Inc.		15,682		1,095,074
				2,140,457
AIRLINES — 0.92%
United Continental Holdings Inc.a		41,339		1,403,459
				1,403,459
AUTO COMPONENTS — 2.18%
Autoliv Inc.		11,122		992,416
Goodyear Tire & Rubber Co. (The)		28,543		598,832
Lear Corp.		9,359		724,293
TRW Automotive Holdings Corp.a		13,600		1,021,496
				3,337,037
BEVERAGES — 1.43%
Coca-Cola Enterprises Inc.		28,879		1,205,121
Molson Coors Brewing Co. Class B NVS		18,326		989,604
				2,194,725
BUILDING PRODUCTS — 0.57%
Masco Corp.		41,463		876,113
				876,113
CAPITAL MARKETS — 0.32%
Legg Mason Inc.		12,601		484,761
				484,761
CHEMICALS — 3.98%
Ashland Inc.		8,358		773,533
Axiall Corp.		8,105		315,203
Celanese Corp. Series A		18,545		1,038,705
CF Industries Holdings Inc.		6,654		1,434,602
Eastman Chemical Co.		17,915		1,411,523
Huntsman Corp.		22,675		526,514
RPM International Inc.		15,416		596,908
				6,096,988
COMMERCIAL BANKS — 6.11%
BOK Financial Corp.		2,402		147,075
City National Corp.		5,487		395,668
Comerica Inc.		21,485		930,301
Commerce Bancshares Inc.		8,944		411,513
Cullen/Frost Bankers Inc.		6,084		430,686
East West Bancorp Inc.		15,978		538,299
First Niagara Financial Group Inc.		41,088		453,201
Huntington Bancshares Inc.		96,378		848,126

Security	Shares		Value
KeyCorp		105,855	$	1,326,363
M&T Bank Corp.b		15,104		1,699,653
Regions Financial Corp.		162,124		1,561,254
Zions Bancorp		21,411		607,430
				9,349,569
COMMERCIAL SERVICES & SUPPLIES — 0.69%
Republic Services Inc.		31,538		1,055,577
				1,055,577
COMMUNICATIONS EQUIPMENT — 0.50%
Harris Corp.		12,422		769,667
				769,667
COMPUTERS & PERIPHERALS — 2.31%
Seagate Technology PLC		37,621		1,831,390
Western Digital Corp.		24,499		1,705,866
				3,537,256
CONSTRUCTION & ENGINEERING — 0.70%
KBR Inc.		17,172		593,121
URS Corp.		8,689		471,118
				1,064,239
CONSUMER FINANCE — 0.84%
SLM Corp.		50,664		1,285,346
				1,285,346
CONTAINERS & PACKAGING — 3.33%
Avery Dennison Corp.		11,380		536,226
Bemis Co. Inc.		11,941		476,446
Crown Holdings Inc.a		16,342		712,511
Owens-Illinois Inc.a		19,071		606,267
Packaging Corp. of America		11,433		712,047
Rock-Tenn Co. Class A		8,360		894,604
Sealed Air Corp.		22,731		686,021
Sonoco Products Co.		11,651		473,497
				5,097,619
DIVERSIFIED CONSUMER SERVICES — 0.59%
H&R Block Inc.		31,812		904,733
				904,733
DIVERSIFIED FINANCIAL SERVICES — 1.80%
Leucadia National Corp.		36,404		1,031,689
NASDAQ OMX Group Inc. (The)		13,400		474,762
NYSE Euronext Inc.		28,225		1,242,465
				2,748,916
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.72%
Frontier Communications Corp.b		115,994		511,534

32 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
Windstream Holdings Inc.		68,786	$	588,120
				1,099,654
ELECTRIC UTILITIES — 4.29%
Entergy Corp.		20,708		1,340,222
Great Plains Energy Inc.		17,856		418,545
Northeast Utilities		36,558		1,567,973
NV Energy Inc.		27,337		648,980
OGE Energy Corp.		23,041		850,213
Pepco Holdings Inc.		28,904		557,269
Pinnacle West Capital Corp.		12,791		716,680
Westar Energy Inc.		14,737		465,836
				6,565,718
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.84%
Arrow Electronics Inc.a		11,624		558,184
Avnet Inc.		15,951		633,255
Flextronics International Ltd.a		71,031		560,435
Jabil Circuit Inc.		21,396		446,320
Molex Inc.		15,920		614,512
				2,812,706
ENERGY EQUIPMENT & SERVICES — 1.70%
Helmerich & Payne Inc.		12,370		959,294
Nabors Industries Ltd.		30,125		526,585
Noble Corp.		29,430		1,109,511
				2,595,390
FOOD & STAPLES RETAILING — 0.64%
Safeway Inc.		28,030		978,247
				978,247
FOOD PRODUCTS — 2.01%
Bunge Ltd.		17,103		1,404,669
Dean Foods Co.a		10,939		213,311
Hillshire Brands Co.		14,281		468,845
Seaboard Corp.		35		95,550
Tyson Foods Inc. Class A		32,321		894,322
				3,076,697
GAS UTILITIES — 1.41%
AGL Resources Inc.		13,761		658,601
Atmos Energy Corp.		10,517		465,588
Questar Corp.		20,315		480,653
UGI Corp.		13,239		547,697
				2,152,539
HEALTH CARE EQUIPMENT & SUPPLIES — 2.44%
Boston Scientific Corp.a		155,968		1,823,266

Security	Shares		Value
St. Jude Medical Inc.		33,356	$	1,914,301
				3,737,567
HEALTH CARE PROVIDERS & SERVICES — 2.53%
Community Health Systems Inc.		11,001		479,974
Humana Inc.		18,173		1,674,642
Omnicare Inc.		12,033		663,620
Quest Diagnostics Inc.		17,643		1,056,992
				3,875,228
HOTELS, RESTAURANTS & LEISURE — 1.03%
Darden Restaurants Inc.		15,150		780,680
Royal Caribbean Cruises Ltd.		18,881		793,757
				1,574,437
HOUSEHOLD DURABLES — 2.31%
Garmin Ltd.		14,311		669,039
Newell Rubbermaid Inc.		33,454		991,242
Tupperware Brands Corp.		6,000		537,900
Whirlpool Corp.		9,208		1,344,460
				3,542,641
HOUSEHOLD PRODUCTS — 0.46%
Energizer Holdings Inc.		7,243		710,611
				710,611
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 1.36%
AES Corp. (The)		71,496		1,007,379
NRG Energy Inc.		37,510		1,070,160
				2,077,539
INSURANCE — 11.49%
Allied World Assurance Co. Holdings Ltd.		4,017		435,001
American Financial Group Inc.		8,259		464,651
Assurant Inc.		8,698		508,659
Assured Guaranty Ltd.		19,594		401,677
Axis Capital Holdings Ltd.		12,337		585,021
Cincinnati Financial Corp.		17,111		855,550
CNA Financial Corp.		3,119		126,600
Everest Re Group Ltd.		5,649		868,477
Fidelity National Financial Inc. Class A		25,065		705,580
Genworth Financial Inc. Class Aa		57,355		833,368
Hartford Financial Services Group Inc. (The)		52,850		1,781,045
HCC Insurance Holdings Inc.		11,614		530,179
Lincoln National Corp.		30,721		1,395,041
Old Republic International Corp.		28,042		470,825

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
PartnerRe Ltd.		5,525	$	553,660
Principal Financial Group Inc.		31,795		1,508,991
ProAssurance Corp.		7,174		325,126
Reinsurance Group of America Inc.		8,258		587,804
RenaissanceRe Holdings Ltd.		5,175		484,949
Torchmark Corp.		10,639		775,158
Unum Group		30,619		971,847
Validus Holdings Ltd.		12,108		478,024
Willis Group Holdings PLC		20,338		916,634
XL Group PLC		33,243		1,016,238
				17,580,105
IT SERVICES — 2.32%
Amdocs Ltd.		18,814		723,398
Broadridge Financial Solutions Inc.		13,817		485,806
Computer Sciences Corp.		17,156		845,104
Leidos Holdings Inc.		8,451		397,958
Western Union Co.		64,109		1,091,135
				3,543,401
LEISURE EQUIPMENT & PRODUCTS — 0.45%
Hasbro Inc.		13,430		693,660
				693,660
MACHINERY — 3.78%
Joy Global Inc.		12,362		701,543
Kennametal Inc.		9,038		415,748
Oshkosh Corp.a		10,092		480,278
Parker Hannifin Corp.		17,327		2,022,407
SPX Corp.		5,260		477,135
Timken Co. (The)		9,260		489,021
Trinity Industries Inc.		9,127		462,100
Xylem Inc.		21,500		741,750
				5,789,982
MEDIA — 0.95%
Cablevision NY Group Class A		24,830		386,106
Gannett Co. Inc.		26,590		735,745
Washington Post Co. (The) Class B		508		326,807
				1,448,658
METALS & MINING — 3.03%
Alcoa Inc.b		124,235		1,151,658
Cliffs Natural Resources Inc.b		17,764		456,180
Nucor Corp.		36,956		1,913,212
Reliance Steel & Aluminum Co.		8,955		656,312
Steel Dynamics Inc.		25,625		460,481
				4,637,843

Security	Shares		Value
MULTI-UTILITIES — 6.40%
Alliant Energy Corp.		12,874	$	672,280
Ameren Corp.		28,184		1,019,697
CenterPoint Energy Inc.		49,785		1,224,711
CMS Energy Corp.		30,884		848,075
DTE Energy Co.		20,322		1,405,063
Integrys Energy Group Inc.		9,235		541,910
MDU Resources Group Inc.		21,964		654,088
NiSource Inc.		36,308		1,144,428
SCANA Corp.		16,262		758,297
TECO Energy Inc.		23,736		407,547
Wisconsin Energy Corp.		26,445		1,113,599
				9,789,695
MULTILINE RETAIL — 1.39%
Dillard’s Inc. Class A		2,796		229,216
J.C. Penney Co. Inc.a,b		35,318		264,885
Kohl’s Corp.		23,713		1,346,898
Sears Holdings Corp.a,b		5,060		293,885
				2,134,884
OFFICE ELECTRONICS — 0.87%
Xerox Corp.		134,568		1,337,606
				1,337,606
OIL, GAS & CONSUMABLE FUELS — 4.22%
Cimarex Energy Co.		10,048		1,058,557
CVR Energy Inc.		1,839		73,045
Energen Corp.		8,400		657,888
HollyFrontier Corp.		23,215		1,069,283
Murphy Oil Corp.		20,407		1,230,950
Newfield Exploration Co.a		15,745		479,435
Peabody Energy Corp.		31,310		609,919
Tesoro Corp.		15,710		768,062
WPX Energy Inc.a		23,272		515,242
				6,462,381
PERSONAL PRODUCTS — 0.58%
Avon Products Inc.		50,372		881,510
				881,510
PHARMACEUTICALS — 1.99%
Endo Health Solutions Inc.a		13,252		579,510
Hospira Inc.a		19,243		779,726
Mylan Inc.a		44,346		1,679,383
				3,038,619
PROFESSIONAL SERVICES — 0.78%
Dun & Bradstreet Corp. (The)		4,501		489,664

34 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
Manpowergroup Inc.		9,085	$	709,538
				1,199,202
REAL ESTATE INVESTMENT TRUSTS (REITs) — 5.04%
Alexandria Real Estate Equities Inc.b		8,289		545,250
American Capital Agency Corp.		46,019		999,533
BioMed Realty Trust Inc.		22,301		444,236
CBL & Associates Properties Inc.		19,711		390,475
Chimera Investment Corp.		119,208		361,200
DDR Corp.b		30,073		509,737
Duke Realty Corp.b		37,716		624,954
Hospitality Properties Trustb		16,214		476,367
MFA Financial Inc.		42,055		311,628
National Retail Properties Inc.b		14,061		483,698
Piedmont Office Realty Trust Inc. Class A		19,437		359,196
Retail Properties of America Inc. Class A		21,135		302,442
Senior Housing Properties Trustb		21,823		537,719
Starwood Property Trust Inc.		21,721		558,012
Two Harbors Investment Corp.		42,457		396,124
Weingarten Realty Investorsb		13,035		413,601
				7,714,172
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.27%
First Solar Inc.a,b		8,042		404,271
Marvell Technology Group Ltd.		47,393		568,716
Micron Technology Inc.a		120,611		2,132,402
ON Semiconductor Corp.a		52,293		369,189
				3,474,578
SOFTWARE — 0.79%
CA Inc.		38,105		1,210,215
				1,210,215
SPECIALTY RETAIL — 2.17%
Best Buy Co. Inc.		31,337		1,341,224
GameStop Corp. Class A		13,594		745,223
Staples Inc.		76,719		1,236,710
				3,323,157
THRIFTS & MORTGAGE FINANCE — 0.87%
Hudson City Bancorp Inc.		55,156		495,301
New York Community Bancorp Inc.		51,213		830,163
				1,325,464

Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 0.05%
United States Cellular Corp.		1,551	$	75,068
				75,068
TOTAL COMMON STOCKS
(Cost: $120,387,864)				152,805,636
SHORT-TERM INVESTMENTS — 3.11%
MONEY MARKET FUNDS — 3.11%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		4,354,390		4,354,390
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		253,064		253,064
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		149,197		149,197
				4,756,651
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,756,651)				4,756,651
TOTAL INVESTMENTS IN SECURITIES — 102.96%
(Cost: $125,144,515)				157,562,287
Other Assets, Less Liabilities — (2.96)%				(4,531,901	)
NET ASSETS — 100.00%			$	153,030,386

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.89%
AEROSPACE & DEFENSE — 2.09%
Cubic Corp.		8,822	$	463,155
Huntington Ingalls Industries Inc.		21,083		1,508,489
Orbital Sciences Corp.a		25,427		586,601
Teledyne Technologies Inc.a		15,859		1,408,596
				3,966,841
AIRLINES — 0.70%
Spirit Airlines Inc.a		30,751		1,326,906
				1,326,906
AUTO COMPONENTS — 1.86%
American Axle & Manufacturing Holdings Inc.a		28,407		528,654
Tenneco Inc.a		25,880		1,373,452
Visteon Corp.a		21,166		1,631,687
				3,533,793
AUTOMOBILES — 0.58%
Thor Industries Inc.		18,882		1,095,345
				1,095,345
BIOTECHNOLOGY — 1.68%
Alnylam Pharmaceuticals Inc.a		22,385		1,289,600
ImmunoGen Inc.a,b		35,602		586,009
Infinity Pharmaceuticals Inc.a		18,349		248,629
Lexicon Pharmaceuticals Inc.a,b		95,762		229,829
MannKind Corp.a,b		72,764		355,816
PDL BioPharma Inc.b		59,273		479,518
				3,189,401
BUILDING PRODUCTS — 0.25%
Nortek Inc.a		6,681		468,806
				468,806
CAPITAL MARKETS — 0.38%
GAMCO Investors Inc. Class A		1,816		129,862
Walter Investment Management Corp.a		15,690		592,611
				722,473
CHEMICALS — 2.71%
Chemtura Corp.a		41,420		1,014,790
H.B. Fuller Co.		21,293		1,019,296
Innophos Holdings Inc.		9,259		464,061
Innospec Inc.		9,932		457,468
Kronos Worldwide Inc.		8,364		129,726
Minerals Technologies Inc.		14,707		832,857

Security	Shares		Value
PolyOne Corp.		41,078	$	1,244,663
				5,162,861
COMMERCIAL BANKS — 4.84%
Bank of the Ozarks Inc.		13,234		654,818
Capital Bank Financial Corp.a		21,007		466,775
Columbia Banking System Inc.		21,642		555,983
First BanCorp (Puerto Rico)a,b		41,758		231,757
First Financial Bankshares Inc.		12,872		791,757
Home Bancshares Inc.		19,677		666,657
National Bank Holdings Corp. Class A		18,691		392,511
PrivateBancorp Inc.		27,685		674,406
Prosperity Bancshares Inc.		23,746		1,482,938
Texas Capital Bancshares Inc.a		17,337		902,391
UMB Financial Corp.		15,664		922,923
Umpqua Holdings Corp.		47,483		777,297
Western Alliance Bancorpa		32,134		679,634
				9,199,847
COMMERCIAL SERVICES & SUPPLIES — 2.35%
Covanta Holding Corp.		55,337		950,136
Herman Miller Inc.		24,895		755,314
HNI Corp.		19,270		748,640
Mine Safety Appliances Co.		13,408		645,729
Tetra Tech Inc.a		27,181		710,240
UniFirst Corp.		6,449		663,086
				4,473,145
COMMUNICATIONS EQUIPMENT — 2.26%
ADTRAN Inc.		24,527		575,894
ARRIS Group Inc.a		48,662		869,103
JDS Uniphase Corp.a		100,457		1,314,982
Plantronics Inc.		18,606		798,942
Polycom Inc.a,b		71,991		748,706
				4,307,627
CONSTRUCTION & ENGINEERING — 0.76%
EMCOR Group Inc.		28,434		1,053,764
Primoris Services Corp.		14,835		386,303
				1,440,067
CONSTRUCTION MATERIALS — 0.25%
Texas Industries Inc.a		9,019		484,320
				484,320
CONSUMER FINANCE — 0.26%
World Acceptance Corp.a		4,685		487,802
				487,802

36 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

October 31, 2013

Security	Shares		Value
CONTAINERS & PACKAGING — 0.64%
Berry Plastics Group Inc.a		32,645	$	655,512
Graphic Packaging Holding Co.a		66,041		554,744
				1,210,256
DIVERSIFIED CONSUMER SERVICES — 0.99%
Hillenbrand Inc.		26,657		752,261
Outerwall Inc.a,b		11,897		773,067
Weight Watchers International Inc.b		11,372		365,155
				1,890,483
ELECTRICAL EQUIPMENT — 2.22%
EnerSys Inc.		20,168		1,338,147
Franklin Electric Co. Inc.		16,425		621,686
Generac Holdings Inc.		29,005		1,431,397
GrafTech International Ltd.a,b		49,743		442,712
II-VI Inc.a		22,863		390,043
				4,223,985
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.44%
Belden Inc.		18,473		1,242,494
Coherent Inc.		10,331		683,809
Littelfuse Inc.		9,498		807,615
				2,733,918
ENERGY EQUIPMENT & SERVICES — 3.11%
Bristow Group Inc.		15,398		1,239,077
C&J Energy Services Inc.a,b		19,097		439,995
CARBO Ceramics Inc.b		8,406		1,053,608
GulfMark Offshore Inc. Class A		10,465		520,948
Hercules Offshore Inc.a		67,561		459,415
RPC Inc.		25,222		462,571
SEACOR Holdings Inc.		7,984		780,835
Unit Corp.a		18,535		952,884
				5,909,333
FOOD & STAPLES RETAILING — 0.84%
Casey’s General Stores Inc.		16,275		1,186,122
Susser Holdings Corp.a		7,590		416,236
				1,602,358
FOOD PRODUCTS — 2.69%
B&G Foods Inc. Class A		22,430		759,255
J&J Snack Foods Corp.		6,222		532,416
Lancaster Colony Corp.		8,235		683,423
Post Holdings Inc.a		13,761		591,035
Sanderson Farms Inc.		8,526		538,928
Snyders-Lance Inc.		20,540		615,995
Tootsie Roll Industries Inc.		8,584		274,688

Security	Shares		Value
TreeHouse Foods Inc.a		15,414	$	1,129,230
				5,124,970
GAS UTILITIES — 0.43%
South Jersey Industries Inc.		13,640		812,262
				812,262
HEALTH CARE EQUIPMENT & SUPPLIES — 1.09%
Integra LifeSciences Holdings Corp.a,b		8,612		394,257
Steris Corp.		25,031		1,131,151
Wright Medical Group Inc.a		19,850		539,325
				2,064,733
HEALTH CARE PROVIDERS & SERVICES — 3.65%
AmSurg Corp.a,b		13,727		588,751
Centene Corp.a,b		23,134		1,299,205
Chemed Corp.b		7,855		532,726
Hanger Inc.a,b		14,674		538,536
HealthSouth Corp.		36,981		1,298,403
Molina Healthcare Inc.a		11,906		376,706
VCA Antech Inc.a		37,561		1,068,611
WellCare Health Plans Inc.a		18,447		1,230,046
				6,932,984
HEALTH CARE TECHNOLOGY — 0.22%
Quality Systems Inc.		18,402		419,934
				419,934
HOTELS, RESTAURANTS & LEISURE — 4.67%
Bloomin’ Brands Inc.a		18,818		471,015
Brinker International Inc.		28,063		1,246,558
Cheesecake Factory Inc. (The)		21,041		994,187
Choice Hotels International Inc.		13,415		625,005
Cracker Barrel Old Country Store Inc.		10,081		1,107,600
DineEquity Inc.		6,876		564,313
International Speedway Corp. Class A		11,802		386,043
Jack in the Box Inc.a		18,251		742,451
Marriott Vacations Worldwide Corp.a		12,906		646,333
Orient-Express Hotels Ltd. Class Aa		37,470		498,726
Pinnacle Entertainment Inc.a		23,873		558,628
Wendy’s Co. (The)		120,031		1,043,069
				8,883,928
HOUSEHOLD DURABLES — 1.24%
Helen of Troy Ltd.a,b		12,769		596,568

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

October 31, 2013

Security	Shares		Value
Ryland Group Inc. (The)		19,465	$	782,493
Tempur Sealy International Inc.a		25,629		982,872
				2,361,933
HOUSEHOLD PRODUCTS — 0.39%
Harbinger Group Inc.a		14,013		152,602
Spectrum Brands Holdings Inc.		9,008		593,807
				746,409
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.43%
Dynegy Inc.a,b		41,699		810,212
				810,212
INSURANCE — 1.07%
Enstar Group Ltd.a		3,763		511,505
Greenlight Capital Re Ltd. Class Aa,b		12,338		379,887
Hilltop Holdings Inc.a		26,992		468,041
RLI Corp.		7,247		684,696
				2,044,129
INTERNET SOFTWARE & SERVICES — 0.53%
j2 Global Inc.		18,441		1,013,886
				1,013,886
IT SERVICES — 3.04%
CoreLogic Inc.a		40,507		1,347,668
DST Systems Inc.		12,764		1,082,004
Euronet Worldwide Inc.a		19,960		866,264
Heartland Payment Systems Inc.		15,551		629,038
iGATE Corp.a		12,268		390,613
MoneyGram International Inc.a		9,037		190,771
TeleTech Holdings Inc.a		8,192		216,842
VeriFone Systems Inc.a		46,299		1,049,136
				5,772,336
LEISURE EQUIPMENT & PRODUCTS — 0.91%
Brunswick Corp.		38,293		1,728,163
				1,728,163
LIFE SCIENCES TOOLS & SERVICES — 0.54%
Charles River Laboratories International Inc.a		20,801		1,023,617
				1,023,617
MACHINERY — 4.43%
Actuant Corp. Class A		31,044		1,166,013
Barnes Group Inc.		19,361		688,090
CLARCOR Inc.		21,134		1,235,916
ESCO Technologies Inc.		11,198		404,024

Security	Shares		Value
Manitowoc Co. Inc. (The)		56,604	$	1,101,514
Mueller Industries Inc.		11,943		720,043
Rexnord Corp.a,b		16,574		389,820
Titan International Inc.b		22,675		328,788
TriMas Corp.a		17,620		667,093
Watts Water Technologies Inc. Class A		12,046		696,018
Woodward Inc.		25,665		1,028,910
				8,426,229
MEDIA — 2.27%
DreamWorks Animation SKG Inc. Class Aa		30,212		1,034,459
Live Nation Entertainment Inc.a		59,693		1,160,432
Loral Space & Communications Inc.		5,624		401,385
National CineMedia Inc.		24,049		421,338
Scholastic Corp.		10,931		313,610
Sinclair Broadcast Group Inc. Class A		30,881		990,045
				4,321,269
METALS & MINING — 2.27%
AMCOL International Corp.		10,570		339,085
Coeur Mining Inc.a		42,741		521,868
Hecla Mining Co.		144,722		451,533
Kaiser Aluminum Corp.		7,953		536,430
Stillwater Mining Co.a,b		50,306		548,838
SunCoke Energy Inc.a		29,737		594,740
Walter Energy Inc.		26,355		418,781
Worthington Industries Inc.		22,409		908,461
				4,319,736
MULTILINE RETAIL — 0.36%
Saks Inc.a		43,110		689,329
				689,329
OFFICE ELECTRONICS — 0.55%
Zebra Technologies Corp. Class Aa		21,520		1,039,631
				1,039,631
OIL, GAS & CONSUMABLE FUELS — 3.65%
Berry Petroleum Co. Class A		20,768		991,672
Bill Barrett Corp.a,b		20,562		568,950
Energy XXI (Bermuda) Ltd.		32,130		933,698
EPL Oil & Gas Inc.a		14,500		462,260
EXCO Resources Inc.		57,119		309,014
Gran Tierra Energy Inc.a		115,108		873,670
PDC Energy Inc.a		15,097		1,023,728

38 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

October 31, 2013

Security	Shares		Value
SemGroup Corp. Class A		17,973	$	1,085,389
Teekay Corp.		16,096		699,049
				6,947,430
PAPER & FOREST PRODUCTS — 1.09%
Boise Cascade Co.a		8,963		229,543
Clearwater Paper Corp.a		9,246		482,826
KapStone Paper and Packaging Corp.		16,981		882,333
P.H. Glatfelter Co.		18,176		476,211
				2,070,913
PERSONAL PRODUCTS — 0.21%
Elizabeth Arden Inc.a,b		10,961		396,679
				396,679
REAL ESTATE INVESTMENT TRUSTS (REITs) — 12.42%
Alexander’s Inc.		885		284,758
Aviv REIT Inc.		6,473		164,414
Chesapeake Lodging Trust		20,474		482,572
Corporate Office Properties Trust		37,036		911,086
Cousins Properties Inc.b		74,795		847,427
CubeSmart		53,252		972,914
DiamondRock Hospitality Co.		82,898		944,208
EastGroup Properties Inc.		12,858		818,540
EPR Properties		21,461		1,102,452
Equity One Inc.		26,839		647,088
Franklin Street Properties Corp.		36,662		483,938
GEO Group Inc. (The)		29,185		1,029,355
Glimcher Realty Trustb		61,582		631,216
Healthcare Realty Trust Inc.b		40,646		975,910
Hersha Hospitality Trust		81,446		461,799
Inland Real Estate Corp.		35,450		378,961
LaSalle Hotel Propertiesb		40,785		1,266,374
Lexington Realty Trust		76,411		894,009
LTC Properties Inc.		14,635		577,351
Medical Properties Trust Inc.		67,899		885,403
Mid-America Apartment Communities Inc.		31,605		2,098,572
National Health Investors Inc.		10,415		651,146
Post Properties Inc.		23,145		1,058,652
Potlatch Corp.		17,199		702,235
PS Business Parks Inc.		7,704		627,799
Ramco-Gershenson Properties Trust		25,799		419,492
Sovran Self Storage Inc.		13,326		1,019,306
Sun Communities Inc.b		14,254		635,301
Sunstone Hotel Investors Inc.		69,081		915,323

Security	Shares		Value
Washington Real Estate Investment Trustb		28,221	$	739,672
				23,627,273
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.63%
Kennedy-Wilson Holdings Inc.		25,080		502,603
St. Joe Co. (The)a,b		37,236		695,196
				1,197,799
ROAD & RAIL — 2.69%
AMERCO		2,501		505,027
Avis Budget Group Inc.a		45,780		1,434,287
Con-way Inc.		23,940		986,328
Heartland Express Inc.		20,456		293,748
Knight Transportation Inc.		25,484		432,464
Swift Transportation Co.a,b		46,353		1,010,032
Werner Enterprises Inc.		19,380		448,841
				5,110,727
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.96%
Advanced Micro Devices Inc.a,b		259,079		865,324
Cypress Semiconductor Corp.		58,036		538,574
Entegris Inc.a		59,171		612,420
International Rectifier Corp.a		30,035		782,111
Intersil Corp. Class A		53,616		598,355
Microsemi Corp.a		39,499		992,610
MKS Instruments Inc.		22,570		668,975
RF Micro Devices Inc.a		119,390		626,797
Semtech Corp.a		28,857		897,741
SunEdison Inc.a		102,121		949,725
				7,532,632
SOFTWARE — 2.07%
Compuware Corp.		90,997		971,848
Mentor Graphics Corp.		40,667		897,927
Progress Software Corp.a		22,788		591,577
Take-Two Interactive Software Inc.a		37,179		665,876
Verint Systems Inc.a		22,364		816,733
				3,943,961
SPECIALTY RETAIL — 5.18%
Aaron’s Inc.		32,212		913,854
Aeropostale Inc.a,b		33,245		308,846
ANN INC.a		19,315		682,978
Asbury Automotive Group Inc.a		13,215		634,981
Buckle Inc. (The)b		11,904		582,582

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

October 31, 2013

Security	Shares		Value
Children’s Place Retail Stores Inc. (The)a		9,392	$	512,709
Conn’s Inc.a,b		10,429		630,329
DSW Inc. Class A		15,416		1,351,521
Express Inc.a		37,691		874,808
Finish Line Inc. (The) Class A		20,752		519,630
Genesco Inc.a		10,179		693,292
Group 1 Automotive Inc.		8,950		572,800
Jos. A. Bank Clothiers Inc.a		11,817		566,980
OfficeMax Inc.		36,722		550,095
Sears Hometown and Outlet Stores Inc.a		5,002		139,356
Sonic Automotive Inc. Class A		14,432		321,545
				9,856,306
TEXTILES, APPAREL & LUXURY GOODS — 3.25%
Columbia Sportswear Co.		5,386		360,162
Crocs Inc.a		37,287		454,156
Deckers Outdoor Corp.a,b		14,633		1,007,189
Fifth & Pacific Companies Inc.a		51,925		1,375,493
Iconix Brand Group Inc.a,b		22,859		824,981
Quiksilver Inc.a,b		53,802		447,633
SKECHERS U.S.A. Inc. Class Aa		16,725		487,366
Wolverine World Wide Inc.		21,271		1,228,188
				6,185,168
THRIFTS & MORTGAGE FINANCE — 1.29%
Capitol Federal Financial Inc.		58,299		738,648
MGIC Investment Corp.a		143,057		1,164,484
Northwest Bancshares Inc.		39,963		559,083
				2,462,215
TOBACCO — 0.22%
Vector Group Ltd.		25,555		413,224
				413,224
TRADING COMPANIES & DISTRIBUTORS — 1.83%
Applied Industrial Technologies Inc.		17,904		847,038
GATX Corp.		19,591		1,009,916
Kaman Corp.		11,410		424,224
MRC Global Inc.a		43,087		1,204,282
				3,485,460
TRANSPORTATION INFRASTRUCTURE — 0.17%
Wesco Aircraft Holdings Inc.a		17,466		319,977
				319,977

Security	Shares		Value
WATER UTILITIES — 0.24%
American States Water Co.		16,317	$	464,708
				464,708
TOTAL COMMON STOCKS
(Cost: $150,565,361)				189,979,729
SHORT-TERM INVESTMENTS — 8.76%
MONEY MARKET FUNDS — 8.76%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		15,568,835		15,568,835
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		904,814		904,814
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		178,303		178,303
				16,651,952
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,651,952)				16,651,952
TOTAL INVESTMENTS IN SECURITIES — 108.65%
(Cost: $167,217,313)				206,631,681
Other Assets, Less Liabilities — (8.65)%				(16,447,148	)
NET ASSETS — 100.00%			$	190,184,533

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

40 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.86%
AEROSPACE & DEFENSE — 1.95%
DigitalGlobe Inc.a		18,713	$	595,448
HEICO Corp.		15,478		829,311
Hexcel Corp.a		27,517		1,164,244
				2,589,003
AIR FREIGHT & LOGISTICS — 0.52%
Forward Air Corp.		8,396		339,870
Hub Group Inc. Class Aa		9,614		353,122
				692,992
AIRLINES — 0.32%
Allegiant Travel Co.		4,085		425,943
				425,943
AUTO COMPONENTS — 0.31%
Dorman Products Inc.		8,334		405,116
				405,116
BEVERAGES — 0.42%
Boston Beer Co. Inc. (The) Class Aa,b		2,397		550,327
				550,327
BIOTECHNOLOGY — 6.86%
ACADIA Pharmaceuticals Inc.a		20,721		470,988
Acorda Therapeutics Inc.a		11,174		342,036
Aegerion Pharmaceuticals Inc.a		6,680		553,238
Arena Pharmaceuticals Inc.a,b		59,941		263,141
Celldex Therapeutics Inc.a		22,232		509,335
Cepheid Inc.a		18,516		753,972
Cubist Pharmaceuticals Inc.a		18,138		1,124,556
Genomic Health Inc.a,b		4,664		139,547
Incyte Corp.a		37,808		1,474,512
Ironwood Pharmaceuticals Inc. Class Aa,b		29,152		280,151
Isis Pharmaceuticals Inc.a,b		31,649		1,052,962
Myriad Genetics Inc.a,b		22,101		538,822
NPS Pharmaceuticals Inc.a		25,614		737,171
Opko Health Inc.a,b		58,253		583,695
Synageva BioPharma Corp.a,b		5,148		261,518
				9,085,644
BUILDING PRODUCTS — 1.04%
Lennox International Inc.		12,608		984,180
Simpson Manufacturing Co. Inc.		11,204		397,182
				1,381,362

Security	Shares		Value
CAPITAL MARKETS — 3.55%
Artisan Partners Asset Management Inc.		3,088	$	184,879
Cohen & Steers Inc.		5,129		196,748
E*TRADE Financial Corp.a		78,790		1,332,339
Evercore Partners Inc. Class A		8,634		435,758
Financial Engines Inc.		13,637		761,899
Greenhill & Co. Inc.		7,162		367,411
Stifel Financial Corp.a		16,230		664,619
Virtus Investment Partners Inc.a		1,893		385,263
WisdomTree Investments Inc.a		27,330		379,887
				4,708,803
CHEMICALS — 0.82%
Balchem Corp.		8,186		468,730
Intrepid Potash Inc.b		15,279		226,893
Tronox Ltd. Class A		16,782		387,497
				1,083,120
COMMERCIAL BANKS — 0.23%
Investors Bancorp Inc.		12,910		306,096
				306,096
COMMERCIAL SERVICES & SUPPLIES — 0.95%
Healthcare Services Group Inc.		19,211		526,189
Interface Inc.		15,988		323,757
Mobile Mini Inc.a,b		11,166		403,316
				1,253,262
COMMUNICATIONS EQUIPMENT — 3.24%
Aruba Networks Inc.a		31,353		588,182
Ciena Corp.a		28,313		658,844
Finisar Corp.a		25,747		592,438
InterDigital Inc.		11,282		437,178
Ixiaa		15,423		218,698
Riverbed Technology Inc.a		45,091		668,249
Ruckus Wireless Inc.a		14,254		206,683
Ubiquiti Networks Inc.		4,337		167,321
ViaSat Inc.a,b		11,475		758,727
				4,296,320
COMPUTERS & PERIPHERALS — 0.53%
Electronics For Imaging Inc.a		12,745		437,281
Fusion-io Inc.a,b		24,293		261,150
				698,431
CONSTRUCTION & ENGINEERING — 0.40%
MasTec Inc.a		16,523		528,240
				528,240

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
CONSUMER FINANCE — 1.23%
Credit Acceptance Corp.a		2,706	$	320,120
First Cash Financial Services Inc.a,b		7,951		480,956
Portfolio Recovery Associates Inc.a		13,926		827,901
				1,628,977
DISTRIBUTORS — 0.53%
Pool Corp.		12,825		697,424
				697,424
DIVERSIFIED CONSUMER SERVICES — 1.34%
Bright Horizons Family Solutions Inc.a,b		5,364		199,809
Grand Canyon Education Inc.a		12,633		597,162
Sotheby’s		18,757		973,488
				1,770,459
DIVERSIFIED FINANCIAL SERVICES — 0.51%
MarketAxess Holdings Inc.		10,312		672,652
				672,652
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.32%
Cogent Communications Group Inc.		11,948		419,733
				419,733
ELECTRICAL EQUIPMENT — 1.03%
AZZ Inc.		6,997		314,165
Polypore International Inc.a,b		12,816		579,283
Solarcity Corp.a,b		8,814		469,610
				1,363,058
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.86%
Cognex Corp.		22,686		708,937
FEI Co.		11,459		1,020,768
OSI Systems Inc.a		5,158		375,709
Universal Display Corp.a		11,297		360,374
				2,465,788
ENERGY EQUIPMENT & SERVICES — 1.88%
Forum Energy Technologies Inc.a		12,434		363,819
Geospace Technologies Corp.a		3,546		345,451
Hornbeck Offshore Services Inc.a		8,911		492,511
ION Geophysical Corp.a		33,832		156,980
Nuverra Environmental Solutions Inc.a,b		41,834		102,075
Pacific Drilling SAa		18,519		210,561
Tidewater Inc.		13,584		818,029
				2,489,426

Security	Shares		Value
FOOD & STAPLES RETAILING — 1.56%
Fresh Market Inc. (The)a		11,013	$	560,672
PriceSmart Inc.		4,733		538,568
United Natural Foods Inc.a		13,537		967,219
				2,066,459
FOOD PRODUCTS — 2.11%
Darling International Inc.a		32,447		755,042
Hain Celestial Group Inc.a		13,092		1,089,647
WhiteWave Foods Co. Class Aa		47,511		950,695
				2,795,384
HEALTH CARE EQUIPMENT & SUPPLIES — 5.57%
Align Technology Inc.a,b		19,284		1,100,345
Analogic Corp.		3,365		310,354
ArthroCare Corp.a		7,763		290,647
Cyberonics Inc.a		6,757		390,284
DexCom Inc.a		18,245		524,179
Endologix Inc.a,b		17,340		313,334
Globus Medical Inc. Class Aa		15,050		288,960
Haemonetics Corp.a,b		14,115		572,504
HeartWare International Inc.a		4,040		293,142
Insulet Corp.a		14,948		583,271
Masimo Corp.		14,111		361,524
Neogen Corp.a,b		9,888		457,023
Thoratec Corp.a		15,793		682,100
Volcano Corp.a		14,991		287,377
West Pharmaceutical Services Inc.		19,156		926,193
				7,381,237
HEALTH CARE PROVIDERS & SERVICES — 1.93%
Acadia Healthcare Co. Inc.a		9,571		414,999
Accretive Health Inc.a		15,089		124,635
Air Methods Corp.		9,590		419,275
Emeritus Corp.a		11,032		211,373
MWI Veterinary Supply Inc.a		3,518		558,096
Team Health Holdings Inc.a		19,108		830,051
				2,558,429
HEALTH CARE TECHNOLOGY — 1.70%
Allscripts Healthcare Solutions Inc.a		43,505		601,674
HMS Holdings Corp.a,b		24,131		509,888
MedAssets Inc.a		16,844		387,918
Medidata Solutions Inc.a		6,884		759,374
				2,258,854
HOTELS, RESTAURANTS & LEISURE — 4.13%
Bally Technologies Inc.a		10,675		780,770
BJ’s Restaurants Inc.a		6,838		185,036

42 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
Boyd Gaming Corp.a		20,788	$	219,521
Buffalo Wild Wings Inc.a		5,157		735,285
Churchill Downs Inc.		3,453		296,647
Domino’s Pizza Inc.		15,275		1,024,342
Interval Leisure Group Inc.		10,879		264,033
Life Time Fitness Inc.a		10,832		491,989
Papa John’s International Inc.		4,416		334,159
Texas Roadhouse Inc.		16,363		448,674
Vail Resorts Inc.		9,858		694,496
				5,474,952
HOUSEHOLD DURABLES — 0.82%
La-Z-Boy Inc.		14,399		332,329
Meritage Homes Corp.a		9,326		423,307
Standard-Pacific Corp.a		41,072		325,701
				1,081,337
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.10%
Ormat Technologies Inc.b		4,832		125,970
				125,970
INDUSTRIAL CONGLOMERATES — 0.25%
Raven Industries Inc.		9,987		333,166
				333,166
INTERNET & CATALOG RETAIL — 0.75%
HomeAway Inc.a		16,177		479,648
Shutterfly Inc.a		10,362		509,189
				988,837
INTERNET SOFTWARE & SERVICES — 5.65%
Angie’s List Inc.a,b		11,258		158,625
Bankrate Inc.a,b		11,153		187,817
Cornerstone OnDemand Inc.a		12,279		581,656
CoStar Group Inc.a		7,856		1,390,433
Dealertrack Technologies Inc.a		12,036		448,943
Liquidity Services Inc.a,b		7,077		184,780
NIC Inc.		16,398		403,719
OpenTable Inc.a		6,283		436,543
Pandora Media Inc.a		43,299		1,088,104
Shutterstock Inc.a,b		2,872		203,338
ValueClick Inc.a		19,177		368,390
VistaPrint NVa,b		8,319		449,642
WebMD Health Corp.a		13,010		458,212
Yelp Inc.a,b		9,489		642,880
Zillow Inc. Class Aa		6,104		486,061
				7,489,143

Security	Shares		Value
IT SERVICES — 2.96%
Acxiom Corp.a		20,331	$	675,599
Blackhawk Network Holdings Inc.a		2,693		61,562
Cardtronics Inc.a		12,355		484,934
ExlService Holdings Inc.a		8,459		244,550
MAXIMUS Inc.		18,718		906,887
NeuStar Inc. Class Aa		15,201		698,030
Sapient Corp.a		30,370		480,150
Syntel Inc.		4,260		365,678
				3,917,390
LEISURE EQUIPMENT & PRODUCTS — 0.26%
Sturm, Ruger & Co. Inc.b		5,311		347,393
				347,393
LIFE SCIENCES TOOLS & SERVICES — 1.59%
Bruker Corp.a		29,825		609,921
PAREXEL International Corp.a		15,432		705,397
TECHNE Corp.		9,102		795,424
				2,110,742
MACHINERY — 3.41%
Chart Industries Inc.a		8,330		895,225
EnPro Industries Inc.a,b		5,751		343,162
Lindsay Corp.		3,532		268,467
Middleby Corp. (The)a		5,245		1,194,024
Proto Labs Inc.a		5,551		465,507
RBC Bearings Inc.a		6,305		433,721
Toro Co. (The)		15,689		924,710
				4,524,816
METALS & MINING — 1.91%
Allied Nevada Gold Corp.a		26,078		106,398
Carpenter Technology Corp.		14,515		861,175
Compass Minerals International Inc.		9,184		683,932
Globe Specialty Metals Inc.		17,788		312,002
Molycorp Inc.a,b		49,961		253,302
US Silica Holdings Inc.b		9,211		320,727
				2,537,536
OIL, GAS & CONSUMABLE FUELS — 4.06%
Approach Resources Inc.a,b		9,609		270,493
Bonanza Creek Energy Inc.a		7,838		396,133
Carrizo Oil & Gas Inc.a		10,211		447,650
Clean Energy Fuels Corp.a,b		18,428		209,895
Halcon Resources Corp.a,b		69,319		359,072
Kodiak Oil & Gas Corp.a		72,895		945,448
Laredo Petroleum Holdings Inc.a		16,066		510,417

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
Rosetta Resources Inc.a		16,775	$	1,005,494
SandRidge Energy Inc.a,b		98,350		623,539
Targa Resources Corp.		7,933		615,283
				5,383,424
PAPER & FOREST PRODUCTS — 0.49%
Louisiana-Pacific Corp.a		38,517		655,174
				655,174
PERSONAL PRODUCTS — 0.33%
Prestige Brands Holdings Inc.a		14,018		437,782
				437,782
PHARMACEUTICALS — 3.20%
Akorn Inc.a,b		19,583		400,277
Impax Laboratories Inc.a		17,585		356,272
Medicines Co. (The)a		17,161		582,101
Nektar Therapeuticsa,b		31,789		302,313
Questcor Pharmaceuticals Inc.		15,150		929,756
Santarus Inc.a		16,766		391,151
Taro Pharmaceutical Industries Ltd.a		4,180		327,503
ViroPharma Inc.a		17,987		698,255
VIVUS Inc.a,b		27,698		260,084
				4,247,712
PROFESSIONAL SERVICES — 1.49%
Acacia Research Corp.		13,719		207,020
Advisory Board Co. (The)a,b		9,841		675,093
Corporate Executive Board Co. (The)		9,221		672,211
On Assignment Inc.a		12,626		426,632
				1,980,956
REAL ESTATE INVESTMENT TRUSTS (REITs) — 4.56%
Acadia Realty Trust		15,226		406,077
American Assets Trust Inc.		8,925		297,113
DuPont Fabros Technology Inc.b		17,789		442,057
Education Realty Trust Inc.		31,297		286,055
Healthcare Trust of America Inc. Class A		47,631		553,472
Hudson Pacific Properties Inc.		11,862		245,425
Parkway Properties Inc.		11,715		212,159
Pebblebrook Hotel Trust		16,935		511,437
RLJ Lodging Trust		33,703		851,338
Ryman Hospitality Properties Inc.		14,196		523,974
Sabra Healthcare REIT Inc.		10,270		276,263
Spirit Realty Capital Inc.		96,596		1,010,394
Strategic Hotels & Resorts Inc.a		49,541		431,007
				6,046,771

Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.89%
Alexander & Baldwin Inc.a		11,710	$	433,270
Altisource Portfolio Solutions SAa		4,708		740,474
				1,173,744
ROAD & RAIL — 0.52%
Landstar System Inc.		12,545		693,613
				693,613
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.77%
Atmel Corp.a		117,367		854,432
Cavium Inc.a		14,165		570,991
Cirrus Logic Inc.a		17,424		390,820
Hittite Microwave Corp.a		8,668		553,798
Integrated Device Technology Inc.a		37,452		398,489
Power Integrations Inc.		8,148		468,021
Silicon Laboratories Inc.a		10,812		434,859
SunPower Corp.a,b		10,989		331,758
Synaptics Inc.a		9,184		427,056
Tessera Technologies Inc.		13,334		253,613
Veeco Instruments Inc.a,b		10,752		314,066
				4,997,903
SOFTWARE — 9.68%
ACI Worldwide Inc.a,b		10,856		598,383
Advent Software Inc.		11,336		380,323
Aspen Technology Inc.a		25,722		983,352
Blackbaud Inc.		12,578		452,808
Bottomline Technologies Inc.a,b		9,944		312,440
Fair Isaac Corp.		9,673		554,069
Fortinet Inc.a		37,489		753,904
Guidewire Software Inc.a		15,758		799,246
Infoblox Inc.a		12,385		550,513
Manhattan Associates Inc.a		5,308		565,355
MicroStrategy Inc. Class Aa		2,485		303,145
NetScout Systems Inc.a		10,230		289,714
Pegasystems Inc.		4,814		183,221
PTC Inc.a		32,816		909,660
QLIK Technologies Inc.a		24,117		611,125
RealPage Inc.a,b		13,701		336,086
SS&C Technologies Holdings Inc.a		17,004		668,257
Synchronoss Technologies Inc.a		8,264		286,100
TiVo Inc.a		34,674		460,817
Tyler Technologies Inc.a		7,692		743,893
Ultimate Software Group Inc. (The)a		7,833		1,210,042

44 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

October 31, 2013

Security	Shares		Value
VirnetX Holding Corp.a,b		11,695	$	254,249
Zynga Inc. Class Aa		172,232		618,313
				12,825,015
SPECIALTY RETAIL — 3.75%
Five Below Inc.a,b		12,903		622,699
Francesca’s Holdings Corp.a		12,134		218,291
Hibbett Sports Inc.a		7,135		416,184
Lithia Motors Inc. Class A		6,187		388,853
Lumber Liquidators Holdings Inc.a,b		7,551		862,249
Mattress Firm Holding Corp.a		4,123		123,937
Monro Muffler Brake Inc.		8,172		375,912
Pier 1 Imports Inc.		29,308		611,951
Restoration Hardware Holdings Inc.a,b		7,491		522,422
Select Comfort Corp.a		15,268		279,710
Tile Shop Holdings Inc. (The)a,b		6,768		151,129
Vitamin Shoppe Inc.a		8,348		391,605
				4,964,942
TEXTILES, APPAREL & LUXURY GOODS — 0.98%
Oxford Industries Inc.		3,967		284,712
Steven Madden Ltd.a		16,518		605,880
Tumi Holdings Inc.a		13,245		282,781
Vera Bradley Inc.a,b		5,868		129,976
				1,303,349
TRADING COMPANIES & DISTRIBUTORS — 1.60%
Air Lease Corp.		20,952		615,989
Aircastle Ltd.		17,747		334,886
Beacon Roofing Supply Inc.a		13,447		466,745
Watsco Inc.		7,392		704,384
				2,122,004
TOTAL COMMON STOCKS (Cost: $102,104,111)				132,336,210
SHORT-TERM INVESTMENTS — 10.96%
MONEY MARKET FUNDS — 10.96%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		13,553,641		13,553,641
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		787,697		787,697

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		187,698	$	187,698
				14,529,036
TOTAL SHORT-TERM INVESTMENTS (Cost: $14,529,036)				14,529,036
TOTAL INVESTMENTS IN SECURITIES — 110.82%
(Cost: $116,633,147)				146,865,246
Other Assets, Less Liabilities — (10.82)%				(14,334,523	)
NET ASSETS — 100.00%			$	132,530,723

^a Non-income earning security.

^b All or a portion of this security represents a security on loan. See Note 5.

^c Affiliated issuer. See Note 2.

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

^e All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Unaudited)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 100.08%
AEROSPACE & DEFENSE — 3.85%
Alliant Techsystems Inc.		23,733	$	2,583,812
Curtiss-Wright Corp.		34,810		1,732,842
Esterline Technologies Corp.a		23,152		1,855,864
Exelis Inc.		139,262		2,296,430
Moog Inc. Class Aa		33,546		2,003,703
Spirit AeroSystems Holdings Inc. Class Aa		75,235		2,008,022
				12,480,673
AIR FREIGHT & LOGISTICS — 0.54%
Atlas Air Worldwide Holdings Inc.a,b		18,940		701,348
UTi Worldwide Inc.		68,189		1,036,473
				1,737,821
AIRLINES — 1.32%
JetBlue Airways Corp.a,b		162,530		1,152,338
US Airways Group Inc.a		142,247		3,125,166
				4,277,504
AUTO COMPONENTS — 1.02%
Cooper Tire & Rubber Co.		45,222		1,176,224
Dana Holding Corp.		108,626		2,129,070
				3,305,294
BIOTECHNOLOGY — 0.19%
Exelixis Inc.a,b		127,614		629,137
				629,137
CAPITAL MARKETS — 1.11%
Federated Investors Inc. Class B		69,866		1,894,766
Janus Capital Group Inc.		112,091		1,106,338
KCG Holdings Inc. Class Aa,b		69,724		609,388
				3,610,492
CHEMICALS — 2.56%
Cabot Corp.		44,118		2,056,340
Olin Corp.		59,448		1,338,175
Scotts Miracle-Gro Co. (The) Class A		32,490		1,907,813
Sensient Technologies Corp.		37,080		1,932,980
Stepan Co.		14,035		826,240
Taminco Corp.a,b		11,990		239,440
				8,300,988
COMMERCIAL BANKS — 15.50%
Associated Banc-Corp		123,240		2,003,882
BancorpSouth Inc.		62,060		1,371,526
Bank of Hawaii Corp.		33,197		1,924,762

Security	Shares		Value
BankUnited Inc.		48,408	$	1,489,514
BBCN Bancorp Inc.		58,606		869,127
CapitalSource Inc.		145,639		1,904,958
Cathay General Bancorp		54,336		1,338,296
Community Bank System Inc.		29,638		1,076,156
CVB Financial Corp.		69,106		1,004,801
F.N.B. Corp.		113,364		1,418,184
First Citizens BancShares Inc. Class A		5,381		1,139,319
First Financial Bancorp		42,952		666,615
First Horizon National Corp.		178,713		1,903,293
First Midwest Bancorp Inc.		55,739		926,940
FirstMerit Corp.		122,248		2,745,690
Fulton Financial Corp.		143,763		1,755,346
Glacier Bancorp Inc.		54,420		1,503,625
Hancock Holding Co.		60,959		1,998,236
IBERIABANK Corp.		22,000		1,285,460
International Bancshares Corp.		42,239		965,161
MB Financial Inc.		40,603		1,205,909
National Penn Bancshares Inc.		87,422		906,566
Old National Bancorp		75,123		1,092,288
PacWest Bancorp		29,645		1,127,992
Park National Corp.		9,498		752,432
Popular Inc.a		76,674		1,936,018
Sterling Financial Corp.		16,184		468,689
Susquehanna Bancshares Inc.		138,038		1,626,778
Synovus Financial Corp.		725,414		2,357,595
TCF Financial Corp.		121,246		1,840,514
Trustmark Corp.		49,747		1,351,129
United Bankshares Inc.		23,488		694,775
Valley National Bancorp		147,596		1,439,061
Webster Financial Corp.		66,822		1,863,666
Westamerica Bancorp		19,989		1,029,034
Wintrust Financial Corp.		29,652		1,290,159
				50,273,496
COMMERCIAL SERVICES & SUPPLIES — 3.81%
ABM Industries Inc.		37,732		1,038,007
Brink’s Co. (The)		35,535		1,115,799
Deluxe Corp.		37,465		1,764,227
Pitney Bowes Inc.		149,495		3,190,223
Quad Graphics Inc.		19,068		665,855
R.R. Donnelley & Sons Co.		134,269		2,493,375
Steelcase Inc. Class A		46,620		764,102
United Stationers Inc.		29,756		1,322,357
				12,353,945

46 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
COMMUNICATIONS EQUIPMENT — 1.07%
Brocade Communications Systems Inc.a		331,384	$	2,657,700
NETGEAR Inc.a,b		28,546		820,983
				3,478,683
COMPUTERS & PERIPHERALS — 1.20%
Diebold Inc.		47,128		1,411,955
Lexmark International Inc. Class A		46,653		1,658,514
QLogic Corp.a		66,115		816,520
				3,886,989
CONSTRUCTION & ENGINEERING — 1.03%
AECOM Technology Corp.a		76,659		2,436,223
Granite Construction Inc.		28,355		917,284
				3,353,507
CONSUMER FINANCE — 0.63%
Cash America International Inc.b		21,143		834,092
EZCORP Inc. Class A NVSa		40,081		630,474
Nelnet Inc. Class A		13,751		586,205
				2,050,771
CONTAINERS & PACKAGING — 0.37%
Greif Inc. Class A		22,542		1,205,772
				1,205,772
DIVERSIFIED CONSUMER SERVICES — 1.48%
Apollo Group Inc. Class Aa,b		73,805		1,969,855
DeVry Inc.		41,919		1,504,892
Matthews International Corp. Class A		20,478		831,407
Regis Corp.		33,224		481,748
				4,787,902
DIVERSIFIED FINANCIAL SERVICES — 0.30%
PHH Corp.a,b		40,219		967,267
				967,267
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.09%
Intelsat SAa,b		14,067		286,826
				286,826
ELECTRIC UTILITIES — 5.24%
ALLETE Inc.		27,003		1,364,461
Cleco Corp.		44,730		2,072,788
El Paso Electric Co.		29,801		1,048,101
Empire District Electric Co. (The)		31,656		711,943
Hawaiian Electric Industries Inc.		73,305		1,947,714
IDACORP Inc.		37,181		1,918,540
MGE Energy Inc.		17,125		964,309

Security	Shares		Value
Otter Tail Corp.		27,100	$	808,393
PNM Resources Inc.		58,988		1,410,993
Portland General Electric Co.		57,210		1,641,927
UIL Holdings Corp.		41,080		1,582,402
UNS Energy Corp.		30,691		1,518,591
				16,990,162
ELECTRICAL EQUIPMENT — 0.68%
Brady Corp. Class A		34,454		1,005,712
General Cable Corp.		36,848		1,213,405
				2,219,117
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.91%
Anixter International Inc.a		19,833		1,695,523
AVX Corp.		35,250		467,063
Benchmark Electronics Inc.a		40,503		920,633
Ingram Micro Inc. Class Aa		112,712		2,611,537
Itron Inc.a,b		29,271		1,248,994
Plexus Corp.a,b		25,307		968,752
Sanmina Corp.a		61,845		900,463
SYNNEX Corp.a		19,631		1,203,380
Tech Data Corp.a		27,954		1,455,285
Vishay Intertechnology Inc.a		97,776		1,199,712
				12,671,342
ENERGY EQUIPMENT & SERVICES — 2.36%
Exterran Holdings Inc.a,b		43,678		1,247,007
Helix Energy Solutions Group Inc.a		72,904		1,724,909
Key Energy Services Inc.a,b		97,603		763,255
McDermott International Inc.a		178,932		1,265,049
Patterson-UTI Energy Inc.		108,959		2,643,345
				7,643,565
FOOD & STAPLES RETAILING — 2.33%
Andersons Inc. (The)		12,915		958,034
Harris Teeter Supermarkets Inc.		36,609		1,805,556
Rite Aid Corp.a		625,048		3,331,506
SUPERVALU Inc.a		148,039		1,040,714
Weis Markets Inc.		8,222		420,720
				7,556,530
FOOD PRODUCTS — 0.95%
Cal-Maine Foods Inc.		11,049		560,516
Dole Food Co. Inc.a		38,974		528,098
Fresh Del Monte Produce Inc.		27,970		743,722
Pilgrim’s Pride Corp.a,b		44,226		626,682
Pinnacle Foods Inc.		22,547		610,798
				3,069,816

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
GAS UTILITIES — 2.73%
Laclede Group Inc. (The)		22,497	$	1,058,934
New Jersey Resources Corp.		30,932		1,423,800
Northwest Natural Gas Co.		19,976		867,557
Piedmont Natural Gas Co.		56,049		1,913,513
Southwest Gas Corp.		34,293		1,860,738
WGL Holdings Inc.		38,270		1,722,533
				8,847,075
HEALTH CARE EQUIPMENT & SUPPLIES — 1.15%
Alere Inc.a		56,830		1,916,876
Hill-Rom Holdings Inc.		43,657		1,802,597
				3,719,473
HEALTH CARE PROVIDERS & SERVICES — 2.89%
Health Management Associates Inc. Class Aa		193,092		2,475,439
Health Net Inc.a		58,724		1,785,210
LifePoint Hospitals Inc.a		35,074		1,811,221
Magellan Health Services Inc.a		20,068		1,177,992
Owens & Minor Inc.b		46,877		1,754,137
Select Medical Holdings Corp.		44,399		376,504
				9,380,503
HOTELS, RESTAURANTS & LEISURE — 0.60%
Bob Evans Farms Inc.		20,375		1,163,209
Caesars Acquisition Co.a		27,056		295,722
Caesars Entertainment Corp.a,b		28,074		489,049
				1,947,980
HOUSEHOLD DURABLES — 0.67%
KB Home		69,912		1,186,406
M.D.C. Holdings Inc.		33,551		979,354
				2,165,760
INSURANCE — 8.61%
American National Insurance Co.		3,532		356,979
AmTrust Financial Services Inc.b		22,570		865,785
Argo Group International Holdings Ltd.		20,403		856,518
Aspen Insurance Holdings Ltd.		50,156		1,956,586
CNO Financial Group Inc.		164,390		2,561,196
Endurance Specialty Holdings Ltd.		32,785		1,812,683
FBL Financial Group Inc. Class A		8,108		362,752
First American Financial Corp.		79,445		2,054,448
Hanover Insurance Group Inc. (The)		32,579		1,907,175
Kemper Corp.		39,027		1,444,779
MBIA Inc.a		107,118		1,217,932

Security	Shares		Value
Mercury General Corp.		23,925	$	1,113,948
Montpelier Re Holdings Ltd.b		32,486		896,938
OneBeacon Insurance Group Ltd. Class A		17,108		273,044
Platinum Underwriters Holdings Ltd.		21,734		1,351,637
Primerica Inc.		40,440		1,736,898
Protective Life Corp.		58,039		2,674,437
Selective Insurance Group Inc.		41,152		1,081,063
StanCorp Financial Group Inc.		32,781		1,930,801
Symetra Financial Corp.		71,428		1,337,846
Tower Group International Ltd.		32,906		119,449
				27,912,894
IT SERVICES — 1.85%
Booz Allen Hamilton Holding Corp.		27,424		542,995
CACI International Inc. Class Aa,b		17,204		1,238,344
Convergys Corp.		77,254		1,524,994
Lender Processing Services Inc.		63,087		2,177,763
ManTech International Corp. Class A		17,979		502,334
				5,986,430
MACHINERY — 3.70%
Briggs & Stratton Corp.		35,746		655,582
Crane Co.		36,076		2,290,826
Harsco Corp.		59,717		1,664,910
ITT Corp.		66,777		2,653,050
Navistar International Corp.a,b		51,019		1,844,847
Terex Corp.a		83,073		2,903,401
				12,012,616
MARINE — 0.26%
Matson Inc.		31,649		857,371
				857,371
MEDIA — 2.98%
Belo Corp. Class A		68,478		940,203
Clear Channel Outdoor Holdings Inc. Class Aa		30,584		259,964
John Wiley & Sons Inc. Class A		34,263		1,723,086
Meredith Corp.		27,363		1,403,722
New York Times Co. (The) Class A		92,837		1,283,936
Regal Entertainment Group Class A		58,473		1,111,572
Starz Series Aa		71,217		2,147,192
Valassis Communications Inc.		28,396		776,915
				9,646,590

48 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
METALS & MINING — 1.32%
Commercial Metals Co.		86,526	$	1,588,617
United States Steel Corp.b		107,633		2,678,986
				4,267,603
MULTI-UTILITIES — 1.95%
Avista Corp.		44,390		1,233,598
Black Hills Corp.		32,898		1,668,587
NorthWestern Corp.		28,440		1,303,690
Vectren Corp.		60,882		2,125,999
				6,331,874
MULTILINE RETAIL — 0.48%
Big Lots Inc.a		43,097		1,567,007
				1,567,007
OIL, GAS & CONSUMABLE FUELS — 2.75%
Alon USA Energy Inc.		17,733		214,215
Alpha Natural Resources Inc.a		169,893		1,189,251
Arch Coal Inc.		168,415		714,080
Cloud Peak Energy Inc.a,b		45,587		711,613
Delek US Holdings Inc.		27,548		703,851
Ship Finance International Ltd.b		43,920		726,876
Stone Energy Corp.a,b		37,119		1,293,968
Western Refining Inc.		40,223		1,297,996
World Fuel Services Corp.		53,783		2,051,822
				8,903,672
PAPER & FOREST PRODUCTS — 1.43%
Domtar Corp.		24,240		2,053,370
Resolute Forest Products Inc.a,b		71,167		1,137,960
Schweitzer-Mauduit International Inc.		23,244		1,438,339
				4,629,669
PERSONAL PRODUCTS — 0.06%
Revlon Inc. Class Aa,b		8,303		197,196
				197,196
PROFESSIONAL SERVICES — 0.38%
FTI Consulting Inc.a,b		30,139		1,223,041
				1,223,041
REAL ESTATE INVESTMENT TRUSTS (REITs) — 6.99%
American Capital Mortgage Investment Corp.		42,084		804,225
Anworth Mortgage Asset Corp.		109,035		535,362
ARMOUR Residential REIT Inc.		283,640		1,168,597
Brandywine Realty Trust		115,885		1,649,044
Capstead Mortgage Corp.		69,587		823,214

Security	Shares		Value
Colony Financial Inc.		49,066	$	992,605
CommonWealth REIT		82,614		2,013,303
CYS Investments Inc.		131,010		1,112,275
DCT Industrial Trust Inc.		233,007		1,805,804
First Industrial Realty Trust Inc.b		73,997		1,337,126
Government Properties Income Trustb		39,088		955,702
Hatteras Financial Corp.		73,138		1,331,112
Invesco Mortgage Capital Inc.		99,995		1,544,923
Mack-Cali Realty Corp.		65,083		1,338,106
NorthStar Realty Finance Corp.		177,231		1,653,565
Pennsylvania Real Estate Investment Trust		50,394		913,643
PennyMac Mortgage Investment Trustc		45,215		1,043,110
Redwood Trust Inc.b		60,808		1,065,356
Select Income REIT		21,187		583,702
				22,670,774
ROAD & RAIL — 0.79%
Ryder System Inc.		38,696		2,547,358
				2,547,358
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.64%
Fairchild Semiconductor International Inc.a		94,891		1,202,269
PMC-Sierra Inc.a		151,225		887,691
				2,089,960
SOFTWARE — 0.39%
Rovi Corp.a		75,729		1,269,218
				1,269,218
SPECIALTY RETAIL — 2.11%
Barnes & Noble Inc.a,b		28,567		403,652
Guess? Inc.		44,295		1,384,219
Men’s Wearhouse Inc. (The)		33,925		1,435,027
Office Depot Inc.a,b		183,701		1,026,888
Penske Automotive Group Inc.		31,455		1,246,247
Rent-A-Center Inc.		39,745		1,360,869
				6,856,902
TEXTILES, APPAREL & LUXURY GOODS — 0.27%
Jones Group Inc. (The)		57,140		887,956
				887,956
THRIFTS & MORTGAGE FINANCE — 1.90%
Astoria Financial Corp.		61,859		817,157
EverBank Financial Corp.		62,520		945,302

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Unaudited) (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

October 31, 2013

Security	Shares		Value
Provident Financial Services Inc.		39,889	$	747,520
Radian Group Inc.		130,815		1,905,975
Washington Federal Inc.		77,173		1,758,001
				6,173,955
TOBACCO — 0.28%
Universal Corp.b		17,295		917,154
				917,154
TRADING COMPANIES & DISTRIBUTORS — 0.52%
TAL International Group Inc.		25,073		1,211,277
Textainer Group Holdings Ltd.b		12,767		483,869
				1,695,146
WIRELESS TELECOMMUNICATION SERVICES — 0.84%
NII Holdings Inc.a,b		130,636		449,388
Telephone & Data Systems Inc.		73,132		2,280,256
				2,729,644
TOTAL COMMON STOCKS
(Cost: $270,072,552)				324,572,420
SHORT-TERM INVESTMENTS — 6.11%
MONEY MARKET FUNDS — 6.11%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		18,131,243		18,131,243
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		1,053,733		1,053,733
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		619,511		619,511
				19,804,487
TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,804,487)				19,804,487

	Value
TOTAL INVESTMENTS IN SECURITIES — 106.19%
(Cost: $289,877,039)	$	344,376,907
Other Assets, Less Liabilities — (6.19)%		(20,081,832	)
NET ASSETS — 100.00%	$	324,295,075

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b All or a portion of this security represents a security on loan. See Note 5.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

50 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2013

	iShares Morningstar Large-Cap ETF			iShares Morningstar Large-Cap Growth ETF			iShares Morningstar Large-Cap Value ETF
ASSETS
Investments, at cost:
Unaffiliated	$	326,391,023		$	311,103,684		$	254,519,686
Affiliated (Note 2)		4,142,124			10,036,281			2,893,592
Total cost of investments	$	330,533,147		$	321,139,965		$	257,413,278
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	414,698,861		$	476,565,728		$	268,649,069
Affiliated (Note 2)		4,142,124			10,690,756			3,111,590
Total fair value of investments		418,840,985			487,256,484			271,760,659
Cash		—			—			14,185
Receivables:
Dividends and interest		546,906			204,968			545,743
Capital shares sold		—			9,988			—
Total Assets		419,387,891			487,471,440			272,320,587
LIABILITIES
Payables:
Investment securities purchased		597,869			—			—
Collateral for securities on loan (Note 5)		3,370,600			6,026,831			441,332
Capital shares redeemed		—			—			113,858
Investment advisory fees (Note 2)		69,004			98,587			70,505
Total Liabilities		4,037,473			6,125,418			625,695
NET ASSETS	$	415,350,418		$	481,346,022		$	271,694,892
Net assets consist of:
Paid-in capital	$	339,272,742		$	427,745,885		$	282,839,588
Undistributed net investment income		725,254			270,708			858,804
Accumulated net realized loss		(12,955,416	)		(112,787,090	)		(26,350,881	)
Net unrealized appreciation		88,307,838			166,116,519			14,347,381
NET ASSETS	$	415,350,418		$	481,346,022		$	271,694,892
Shares outstandingb		4,000,000			5,100,000			3,550,000
Net asset value per share	$	103.84		$	94.38		$	76.53

^a  Securities on loan with values of $3,302,807, $5,888,454 and $416,798, respectively. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares Morningstar Mid-Cap ETF			iShares Morningstar Mid-Cap Growth ETF			iShares Morningstar Mid-Cap Value ETF
ASSETS
Investments, at cost:
Unaffiliated	$	179,935,914		$	132,894,869		$	120,387,864
Affiliated (Note 2)		9,645,250			14,052,523			4,756,651
Total cost of investments	$	189,581,164		$	146,947,392		$	125,144,515
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	229,714,130		$	181,743,551		$	152,805,636
Affiliated (Note 2)		9,645,250			14,052,523			4,756,651
Total fair value of investments		239,359,380			195,796,074			157,562,287
Receivables:
Dividends and interest		143,740			23,091			113,825
Total Assets		239,503,120			195,819,165			157,676,112
LIABILITIES
Payables:
Collateral for securities on loan (Note 5)		9,476,526			13,971,603			4,607,454
Investment advisory fees (Note 2)		47,714			46,288			38,272
Total Liabilities		9,524,240			14,017,891			4,645,726
NET ASSETS	$	229,978,880		$	181,801,274		$	153,030,386
Net assets consist of:
Paid-in capital	$	192,937,210		$	248,834,335		$	139,666,532
Undistributed net investment income		218,847			22,132			267,396
Accumulated net realized loss		(12,955,393	)		(115,903,875	)		(19,321,314	)
Net unrealized appreciation		49,778,216			48,848,682			32,417,772
NET ASSETS	$	229,978,880		$	181,801,274		$	153,030,386
Shares outstandingb		1,850,000			1,350,000			1,400,000
Net asset value per share	$	124.31		$	134.67		$	109.31

^a  Securities on loan with values of $9,255,302, $13,671,886 and $4,439,187, respectively. See Note 5.

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

See notes to financial statements.

52 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares Morningstar Small-Cap ETF			iShares Morningstar Small-Cap Growth ETF			iShares Morningstar Small-Cap Value ETF
ASSETS
Investments, at cost:
Unaffiliated	$	150,565,361		$	102,104,111		$	268,926,134
Affiliated (Note 2)		16,651,952			14,529,036			20,950,905
Total cost of investments	$	167,217,313		$	116,633,147		$	289,877,039
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	189,979,729		$	132,336,210		$	323,529,310
Affiliated (Note 2)		16,651,952			14,529,036			20,847,597
Total fair value of investments		206,631,681			146,865,246			344,376,907
Receivables:
Dividends and interest		65,553			39,340			177,432
Total Assets		206,697,234			146,904,586			344,554,339
LIABILITIES
Payables:
Investment securities purchased		—			—			992,893
Collateral for securities on loan (Note 5)		16,473,649			14,341,338			19,184,976
Investment advisory fees (Note 2)		39,052			32,525			81,395
Total Liabilities		16,512,701			14,373,863			20,259,264
NET ASSETS	$	190,184,533		$	132,530,723		$	324,295,075
Net assets consist of:
Paid-in capital	$	166,106,618		$	115,777,884		$	274,268,423
Undistributed net investment income		92,911			39,540			350,939
Accumulated net realized loss		(15,429,364	)		(13,518,800	)		(4,824,155	)
Net unrealized appreciation		39,414,368			30,232,099			54,499,868
NET ASSETS	$	190,184,533		$	132,530,723		$	324,295,075
Shares outstandingb		1,550,000			1,050,000			2,850,000
Net asset value per share	$	122.70		$	126.22		$	113.79

^a  Securities on loan with values of $16,041,878, $13,964,810 and $18,663,442, respectively. See Note 5.

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

See notes to financial statements.

FINANCIAL STATEMENTS 53

Statements of Operations (Unaudited)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Morningstar Large-Cap ETF			iShares Morningstar Large-Cap Growth ETF		iShares Morningstar Large-Cap Value ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	4,457,281		$	2,973,948	$	5,800,579
Dividends — affiliated (Note 2)		18,633			21,035		43,331
Interest — affiliated (Note 2)		7			8		4
Securities lending income — affiliated (Note 2)		1,662			8,142		1,015
Total investment income		4,477,583			3,003,133		5,844,929
EXPENSES
Investment advisory fees (Note 2)		388,612			565,312		481,737
Total expenses		388,612			565,312		481,737
Net investment income		4,088,971			2,437,821		5,363,192
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(1,527,027	)		1,469,444		3,275,046
Investments — affiliated (Note 2)		(61,349	)		1,437		(422	)
In-kind redemptions — unaffiliated		16,621,763			11,767,242		40,216,159
In-kind redemptions — affiliated (Note 2)		733,986			7,286		345,303
Net realized gain		15,767,373			13,245,409		43,836,086
Net change in unrealized appreciation/depreciation		17,609,314			43,791,534		(24,709,601	)
Net realized and unrealized gain		33,376,687			57,036,943		19,126,485
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	37,465,658		$	59,474,764	$	24,489,677

^a  Net of foreign withholding tax of $1,019, $  — and $   —, respectively.

See notes to financial statements.

54 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Morningstar Mid-Cap ETF		iShares Morningstar Mid-Cap Growth ETF		iShares Morningstar Mid-Cap Value ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	1,716,426	$	653,927	$	1,704,493
Interest — affiliated (Note 2)		3		1		1
Securities lending income — affiliated (Note 2)		14,397		41,875		16,183
Total investment income		1,730,826		695,803		1,720,677
EXPENSES
Investment advisory fees (Note 2)		270,084		264,575		206,949
Total expenses		270,084		264,575		206,949
Net investment income		1,460,742		431,228		1,513,728
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		1,267,000		4,815,761		4,308,959
In-kind redemptions — unaffiliated		5,686,939		1,833,369		—
Net realized gain		6,953,939		6,649,130		4,308,959
Net change in unrealized appreciation/depreciation		15,126,776		14,160,149		12,949,739
Net realized and unrealized gain		22,080,715		20,809,279		17,258,698
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	23,541,457	$	21,240,507	$	18,772,426

^a  Net of foreign withholding tax of $  —, $2,196 and $  —, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 55

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Morningstar Small-Cap ETF		iShares Morningstar Small-Cap Growth ETF		iShares Morningstar Small-Cap Value ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	1,058,860	$	391,339	$	3,375,833
Dividends — affiliated (Note 2)		—		—		51,545
Interest — affiliated (Note 2)		2		1		5
Securities lending income — affiliated (Note 2)		72,753		147,622		83,345
Total investment income		1,131,615		538,962		3,510,728
EXPENSES
Investment advisory fees (Note 2)		216,524		159,360		454,516
Total expenses		216,524		159,360		454,516
Net investment income		915,091		379,602		3,056,212
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		1,193,686		4,020,091		(3,955,788	)
In-kind redemptions — unaffiliated		8,091,860		1,123,907		12,130,873
Net realized gain		9,285,546		5,143,998		8,175,085
Net change in unrealized appreciation/depreciation		12,251,147		15,180,938		20,098,816
Net realized and unrealized gain		21,536,693		20,324,936		28,273,901
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	22,451,784	$	20,704,538	$	31,330,113

See notes to financial statements.

56 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Morningstar Large-Cap ETF						iShares Morningstar Large-Cap Growth ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	4,088,971		$	6,667,459		$	2,437,821		$	6,118,913
Net realized gain		15,767,373			34,041,075			13,245,409			12,168,557
Net change in unrealized appreciation/depreciation		17,609,314			22,934,983			43,791,534			20,915,118
Net increase in net assets resulting from operations		37,465,658			63,643,517			59,474,764			39,202,588
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,814,447	)		(6,660,122	)		(2,377,537	)		(6,111,971	)
Total distributions to shareholders		(3,814,447	)		(6,660,122	)		(2,377,537	)		(6,111,971	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		112,222,622			110,984,730			9,257,754			22,753,393
Cost of shares redeemed		(67,259,298	)		(105,074,942	)		(33,986,584	)		(69,233,071	)
Net increase (decrease) in net assets from capital share transactions		44,963,324			5,909,788			(24,728,830	)		(46,479,678	)
INCREASE (DECREASE) IN NET ASSETS		78,614,535			62,893,183			32,368,397			(13,389,061	)
NET ASSETS
Beginning of period		336,735,883			273,842,700			448,977,625			462,366,686
End of period	$	415,350,418		$	336,735,883		$	481,346,022		$	448,977,625
Undistributed net investment income included in net assets at end of period	$	725,254		$	450,730		$	270,708		$	210,424
SHARES ISSUED AND REDEEMED
Shares sold		1,150,000			1,450,000			100,000			300,000
Shares redeemed		(700,000	)		(1,350,000	)		(400,000	)		(900,000	)
Net increase (decrease) in shares outstanding		450,000			100,000			(300,000	)		(600,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 57

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Large-Cap Value ETF						iShares Morningstar Mid-Cap ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	5,363,192		$	6,994,486		$	1,460,742		$	2,408,647
Net realized gain		43,836,086			13,481,182			6,953,939			11,625,839
Net change in unrealized appreciation/depreciation		(24,709,601	)		20,840,522			15,126,776			13,913,848
Net increase in net assets resulting from operations		24,489,677			41,316,190			23,541,457			27,948,334
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(4,983,291	)		(7,045,149	)		(1,415,341	)		(2,235,375	)
Total distributions to shareholders		(4,983,291	)		(7,045,149	)		(1,415,341	)		(2,235,375	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		181,451,471			6,495,200			40,196,137			39,110,150
Cost of shares redeemed		(189,227,904	)		(32,590,258	)		(27,947,992	)		(23,337,269	)
Net increase (decrease) in net assets from capital share transactions		(7,776,433	)		(26,095,058	)		12,248,145			15,772,881
INCREASE IN NET ASSETS		11,729,953			8,175,983			34,374,261			41,485,840
NET ASSETS
Beginning of period		259,964,939			251,788,956			195,604,619			154,118,779
End of period	$	271,694,892		$	259,964,939		$	229,978,880		$	195,604,619
Undistributed net investment income included in net assets at end of period	$	858,804		$	478,903		$	218,847		$	173,446
SHARES ISSUED AND REDEEMED
Shares sold		2,450,000			100,000			350,000			400,000
Shares redeemed		(2,500,000	)		(500,000	)		(250,000	)		(250,000	)
Net increase (decrease) in shares outstanding		(50,000	)		(400,000	)		100,000			150,000

See notes to financial statements.

58 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Mid-Cap Growth ETF						iShares Morningstar Mid-Cap Value ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	431,228		$	1,098,836		$	1,513,728		$	2,497,466
Net realized gain		6,649,130			5,680,963			4,308,959			5,747,371
Net change in unrealized appreciation/depreciation		14,160,149			12,720,324			12,949,739			14,640,619
Net increase in net assets resulting from operations		21,240,507			19,500,123			18,772,426			22,885,456
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(409,096	)		(1,295,046	)		(1,322,502	)		(2,421,296	)
Total distributions to shareholders		(409,096	)		(1,295,046	)		(1,322,502	)		(2,421,296	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			9,909,440			15,278,892			4,676,991
Cost of shares redeemed		(6,343,474	)		(31,544,849	)		—			(4,122,448	)
Net increase (decrease) in net assets from capital share transactions		(6,343,474	)		(21,635,409	)		15,278,892			554,543
INCREASE (DECREASE) IN NET ASSETS		14,487,937			(3,430,332	)		32,728,816			21,018,703
NET ASSETS
Beginning of period		167,313,337			170,743,669			120,301,570			99,282,867
End of period	$	181,801,274		$	167,313,337		$	153,030,386		$	120,301,570
Undistributed net investment income included in net assets at end of period	$	22,132		$	—		$	267,396		$	76,170
SHARES ISSUED AND REDEEMED
Shares sold		—			100,000			150,000			50,000
Shares redeemed		(50,000	)		(300,000	)		—			(50,000	)
Net increase (decrease) in shares outstanding		(50,000	)		(200,000	)		150,000			—

See notes to financial statements.

FINANCIAL STATEMENTS 59

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Small-Cap ETF						iShares Morningstar Small-Cap Growth ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	915,091		$	2,297,077		$	379,602		$	832,241
Net realized gain		9,285,546			7,574,848			5,143,998			3,572,503
Net change in unrealized appreciation/depreciation		12,251,147			11,567,783			15,180,938			7,278,352
Net increase in net assets resulting from operations		22,451,784			21,439,708			20,704,538			11,683,096
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(822,180	)		(2,521,873	)		(340,062	)		(1,180,413	)
Total distributions to shareholders		(822,180	)		(2,521,873	)		(340,062	)		(1,180,413	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		34,199,015			10,115,743			24,274,360			—
Cost of shares redeemed		(27,179,821	)		(17,652,739	)		(5,423,172	)		(9,674,936	)
Net increase (decrease) in net assets from capital share transactions		7,019,194			(7,536,996	)		18,851,188			(9,674,936	)
INCREASE IN NET ASSETS		28,648,798			11,380,839			39,215,664			827,747
NET ASSETS
Beginning of period		161,535,735			150,154,896			93,315,059			92,487,312
End of period	$	190,184,533		$	161,535,735		$	132,530,723		$	93,315,059
Undistributed net investment income included in net assets at end of period	$	92,911		$	—		$	39,540		$	—
SHARES ISSUED AND REDEEMED
Shares sold		300,000			100,000			200,000			—
Shares redeemed		(250,000	)		(200,000	)		(50,000	)		(100,000	)
Net increase (decrease) in shares outstanding		50,000			(100,000	)		150,000			(100,000	)

See notes to financial statements.

60 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Small-Cap Value ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	3,056,212		$	5,339,255
Net realized gain		8,175,085			17,537,343
Net change in unrealized appreciation/depreciation		20,098,816			20,751,326
Net increase in net assets resulting from operations		31,330,113			43,627,924
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,805,886	)		(5,220,430	)
Total distributions to shareholders		(2,805,886	)		(5,220,430	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		57,931,331			115,165,201
Cost of shares redeemed		(40,784,806	)		(39,525,027	)
Net increase in net assets from capital share transactions		17,146,525			75,640,174
INCREASE IN NET ASSETS		45,670,752			114,047,668
NET ASSETS
Beginning of period		278,624,323			164,576,655
End of period	$	324,295,075		$	278,624,323
Undistributed net investment income included in net assets at end of period	$	350,939		$	100,613
SHARES ISSUED AND REDEEMED
Shares sold		550,000			1,200,000
Shares redeemed		(400,000	)		(400,000	)
Net increase in shares outstanding		150,000			800,000

See notes to financial statements.

FINANCIAL STATEMENTS 61

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Large-Cap ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	94.86		$	79.37		$	76.26		$	68.10		$	50.88		$	76.07
Income from investment operations:
Net investment incomea		1.05			1.88			1.59			1.31			1.22			1.50
Net realized and unrealized gain (loss)b		8.91			15.49			3.07			8.14			17.22			(25.24	)
Total from investment operations		9.96			17.37			4.66			9.45			18.44			(23.74	)
Less distributions from:
Net investment income		(0.98	)		(1.88	)		(1.55	)		(1.29	)		(1.22	)		(1.45	)
Total distributions		(0.98	)		(1.88	)		(1.55	)		(1.29	)		(1.22	)		(1.45	)
Net asset value, end of period	$	103.84		$	94.86		$	79.37		$	76.26		$	68.10		$	50.88
Total return		10.57	%c		22.23	%		6.35	%		14.13	%		36.53	%		(31.43	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	415,350		$	336,736		$	273,843		$	320,306		$	265,600		$	195,880
Ratio of expenses to average net assetsd		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assetsd		2.10	%		2.27	%		2.20	%		1.94	%		2.00	%		2.57	%
Portfolio turnover ratee		21	%		63	%		33	%		38	%		32	%		40	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

62 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Large-Cap Growth ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	83.14		$	77.06		$	69.79		$	60.81		$	44.51		$	67.23
Income from investment operations:
Net investment incomea		0.47			1.06			0.60			0.48			0.47			0.47
Net realized and unrealized gain (loss)b		11.24			6.08			7.27			9.00			16.30			(22.74	)
Total from investment operations		11.71			7.14			7.87			9.48			16.77			(22.27	)
Less distributions from:
Net investment income		(0.47	)		(1.06	)		(0.60	)		(0.50	)		(0.47	)		(0.45	)
Total distributions		(0.47	)		(1.06	)		(0.60	)		(0.50	)		(0.47	)		(0.45	)
Net asset value, end of period	$	94.38		$	83.14		$	77.06		$	69.79		$	60.81		$	44.51
Total return		14.14	%c		9.36	%		11.42	%		15.70	%		37.81	%		(33.16	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	481,346		$	448,978		$	462,367		$	397,823		$	446,937		$	331,585
Ratio of expenses to average net assetsd		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assetsd		1.08	%		1.37	%		0.88	%		0.78	%		0.87	%		0.91	%
Portfolio turnover ratee		14	%		42	%		28	%		24	%		24	%		35	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 63

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Large-Cap Value ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	72.21		$	62.95		$	65.67		$	56.69		$	43.65		$	76.51
Income from investment operations:
Net investment incomea		1.05			1.84			1.82			1.57			1.47			2.10
Net realized and unrealized gain (loss)b		4.24			9.28			(2.74	)		8.94			13.07			(32.84	)
Total from investment operations		5.29			11.12			(0.92	)		10.51			14.54			(30.74	)
Less distributions from:
Net investment income		(0.97	)		(1.86	)		(1.80	)		(1.53	)		(1.50	)		(2.12	)
Total distributions		(0.97	)		(1.86	)		(1.80	)		(1.53	)		(1.50	)		(2.12	)
Net asset value, end of period	$	76.53		$	72.21		$	62.95		$	65.67		$	56.69		$	43.65
Total return		7.38	%c		18.02	%		(1.18	)%		19.00	%		33.70	%		(40.70	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	271,695		$	259,965		$	251,789		$	256,126		$	212,600		$	159,308
Ratio of expenses to average net assetsd		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assetsd		2.78	%		2.83	%		3.03	%		2.74	%		2.83	%		3.83	%
Portfolio turnover ratee		14	%		45	%		30	%		30	%		31	%		29	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

64 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Mid-Cap ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	111.77		$	96.32		$	94.80		$	76.24		$	51.77		$	81.41
Income from investment operations:
Net investment incomea		0.80			1.46			1.16			1.12			0.95			0.86
Net realized and unrealized gain (loss)b		12.52			15.35			1.56			18.59			24.47			(29.52	)
Total from investment operations		13.32			16.81			2.72			19.71			25.42			(28.66	)
Less distributions from:
Net investment income		(0.78	)		(1.36	)		(1.20	)		(1.15	)		(0.95	)		(0.98	)
Total distributions		(0.78	)		(1.36	)		(1.20	)		(1.15	)		(0.95	)		(0.98	)
Net asset value, end of period	$	124.31		$	111.77		$	96.32		$	94.80		$	76.24		$	51.77
Total return		11.98	%c		17.65	%		3.02	%		26.14	%		49.44	%		(35.29	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	229,979		$	195,605		$	154,119		$	180,120		$	125,792		$	77,659
Ratio of expenses to average net assetsd		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assetsd		1.35	%		1.48	%		1.32	%		1.40	%		1.49	%		1.40	%
Portfolio turnover ratee		23	%		90	%		53	%		47	%		46	%		60	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 65

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Mid-Cap Growth ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	119.51		$	106.71		$	108.23		$	84.45		$	57.53		$	95.61
Income from investment operations:
Net investment incomea		0.31			0.72			0.14			0.35			0.21			0.23
Net realized and unrealized gain (loss)b		15.15			12.93			(1.47	)		23.82			26.93			(38.07	)
Total from investment operations		15.46			13.65			(1.33	)		24.17			27.14			(37.84	)
Less distributions from:
Net investment income		(0.30	)		(0.85	)		(0.19	)		(0.39	)		(0.22	)		(0.24	)
Return of capital		—			—			—			—			(0.00	)c		—
Total distributions		(0.30	)		(0.85	)		(0.19	)		(0.39	)		(0.22	)		(0.24	)
Net asset value, end of period	$	134.67		$	119.51		$	106.71		$	108.23		$	84.45		$	57.53
Total return		12.95	%d		12.89	%		(1.22	)%		28.69	%		47.28	%		(39.60	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	181,801		$	167,313		$	170,744		$	205,643		$	168,905		$	195,613
Ratio of expenses to average net assetse		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assetse		0.49	%		0.67	%		0.14	%		0.39	%		0.30	%		0.32	%
Portfolio turnover ratef		17	%		73	%		45	%		47	%		45	%		49	%

^a  Based on average shares outstanding throughout each period.

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

^c  Rounds to less than $0.01.

^d  Not annualized.

^e  Annualized for periods of less than one year.

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

See notes to financial statements.

66 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Mid-Cap Value ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	96.24		$	79.43		$	82.79		$	73.33		$	48.03		$	74.60
Income from investment operations:
Net investment incomea		1.13			2.02			1.58			1.89			1.46			1.93
Net realized and unrealized gain (loss)b		12.92			16.75			(3.30	)		9.65			25.19			(26.56	)
Total from investment operations		14.05			18.77			(1.72	)		11.54			26.65			(24.63	)
Less distributions from:
Net investment income		(0.98	)		(1.96	)		(1.64	)		(2.08	)		(1.35	)		(1.94	)
Total distributions		(0.98	)		(1.96	)		(1.64	)		(2.08	)		(1.35	)		(1.94	)
Net asset value, end of period	$	109.31		$	96.24		$	79.43		$	82.79		$	73.33		$	48.03
Total return		14.68	%c		24.06	%		(1.90	)%		16.23	%		56.05	%		(33.26	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	153,030		$	120,302		$	99,283		$	124,191		$	135,653		$	69,647
Ratio of expenses to average net assetsd		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assetsd		2.19	%		2.46	%		2.11	%		2.62	%		2.37	%		3.37	%
Portfolio turnover ratee		18	%		66	%		50	%		46	%		41	%		61	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Small-Cap ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	107.69		$	93.85		$	99.99		$	81.76		$	53.70		$	78.57
Income from investment operations:
Net investment incomea		0.61			1.55			1.00			0.82			0.67			0.65
Net realized and unrealized gain (loss)b		14.96			14.04			(6.22	)		18.33			28.06			(24.88	)
Total from investment operations		15.57			15.59			(5.22	)		19.15			28.73			(24.23	)
Less distributions from:
Net investment income		(0.56	)		(1.75	)		(0.92	)		(0.92	)		(0.66	)		(0.64	)
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		(0.56	)		(1.75	)		(0.92	)		(0.92	)		(0.67	)		(0.64	)
Net asset value, end of period	$	122.70		$	107.69		$	93.85		$	99.99		$	81.76		$	53.70
Total return		14.50	%c		16.88	%		(5.13	)%		23.62	%		53.72	%		(30.86	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	190,185		$	161,536		$	150,155		$	214,971		$	179,882		$	80,550
Ratio of expenses to average net assetsd		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assetsd		1.06	%		1.63	%		1.13	%		0.99	%		1.00	%		1.08	%
Portfolio turnover ratee		29	%		98	%		62	%		69	%		66	%		73	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

68 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Small-Cap Growth ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	103.68		$	92.49		$	95.37		$	72.67		$	50.89		$	73.02
Income from investment operations:
Net investment incomea		0.42			0.87			0.37			0.27			0.06			0.27
Net realized and unrealized gain (loss)b		22.49			11.56			(2.91	)		22.68			21.80			(22.13	)
Total from investment operations		22.91			12.43			(2.54	)		22.95			21.86			(21.86	)
Less distributions from:
Net investment income		(0.37	)		(1.24	)		(0.34	)		(0.25	)		(0.07	)		(0.27	)
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		(0.37	)		(1.24	)		(0.34	)		(0.25	)		(0.08	)		(0.27	)
Net asset value, end of period	$	126.22		$	103.68		$	92.49		$	95.37		$	72.67		$	50.89
Total return		22.13	%c		13.59	%		(2.65	)%		31.63	%		42.98	%		(29.91	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	132,531		$	93,315		$	92,487		$	147,830		$	90,835		$	66,162
Ratio of expenses to average net assetsd		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assetsd		0.71	%		0.93	%		0.43	%		0.34	%		0.10	%		0.47	%
Portfolio turnover ratee		34	%		81	%		68	%		64	%		57	%		56	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 69

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Small-Cap Value ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	103.19		$	86.62		$	89.46		$	78.18		$	48.22		$	72.21
Income from investment operations:
Net investment incomea		1.10			2.44			1.96			1.57			1.28			1.62
Net realized and unrealized gain (loss)b		10.51			16.53			(2.70	)		11.30			29.85			(23.83	)
Total from investment operations		11.61			18.97			(0.74	)		12.87			31.13			(22.21	)
Less distributions from:
Net investment income		(1.01	)		(2.40	)		(2.10	)		(1.59	)		(1.17	)		(1.78	)
Total distributions		(1.01	)		(2.40	)		(2.10	)		(1.59	)		(1.17	)		(1.78	)
Net asset value, end of period	$	113.79		$	103.19		$	86.62		$	89.46		$	78.18		$	48.22
Total return		11.33	%c		22.32	%		(0.57	)%		16.77	%		65.11	%		(30.92	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	324,295		$	278,624		$	164,577		$	201,295		$	195,450		$	65,094
Ratio of expenses to average net assetsd		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assetsd		2.02	%		2.67	%		2.42	%		2.02	%		2.00	%		2.95	%
Portfolio turnover ratee		24	%		69	%		52	%		55	%		57	%		70	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

70 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited)

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

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

iShares ETF	Former Name a	Diversification Classification
Morningstar Large-Cap	iShares Morningstar Large Core Index Fund	Diversified
Morningstar Large-Cap Growth	iShares Morningstar Large Growth Index Fund	Non-diversified
Morningstar Large-Cap Value	iShares Morningstar Large Value Index Fund	Non-diversified
Morningstar Mid-Cap	iShares Morningstar Mid Core Index Fund	Diversified
Morningstar Mid-Cap Growth	iShares Morningstar Mid Growth Index Fund	Diversified
Morningstar Mid-Cap Value	iShares Morningstar Mid Value Index Fund	Diversified
Morningstar Small-Cap	iShares Morningstar Small Core Index Fund	Diversified
Morningstar Small-Cap Growth	iShares Morningstar Small Growth Index Fund	Diversified
Morningstar Small-Cap Value	iShares Morningstar Small Value Index Fund	Diversified

^a The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

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

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

NOTES TO FINANCIAL STATEMENTS 71

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

SECURITY VALUATION

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

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

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

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

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for

72 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

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

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

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of October 31, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

iShares ETF and Investment Type	Investments
	Level 1		Level 2		Level 3		Total
Morningstar Large-Cap
Assets:
Common Stocks	$	414,698,861	$	—	$	—	$	414,698,861
Money Market Funds		4,142,124		—		—		4,142,124
	$	418,840,985	$	—	$	—	$	418,840,985
Morningstar Large-Cap Growth
Assets:
Common Stocks	$	480,401,958	$	—	$	—	$	480,401,958
Money Market Funds		6,854,526		—		—		6,854,526
	$	487,256,484	$	—	$	—	$	487,256,484
Morningstar Large-Cap Value
Assets:
Common Stocks	$	271,093,280	$	—	$	—	$	271,093,280
Money Market Funds		667,379		—		—		667,379
	$	271,760,659	$	—	$	—	$	271,760,659
Morningstar Mid-Cap
Assets:
Common Stocks	$	229,714,130	$	—	$	—	$	229,714,130
Money Market Funds		9,645,250		—		—		9,645,250
	$	239,359,380	$	—	$	—	$	239,359,380
Morningstar Mid-Cap Growth
Assets:
Common Stocks	$	181,743,551	$	—	$	—	$	181,743,551
Money Market Funds		14,052,523		—		—		14,052,523
	$	195,796,074	$	—	$	—	$	195,796,074

NOTES TO FINANCIAL STATEMENTS 73

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

iShares ETF and Investment Type	Investments
	Level 1		Level 2		Level 3		Total
Morningstar Mid-Cap Value
Assets:
Common Stocks	$	152,805,636	$	—	$	—	$	152,805,636
Money Market Funds		4,756,651		—		—		4,756,651
	$	157,562,287	$	—	$	—	$	157,562,287
Morningstar Small-Cap
Assets:
Common Stocks	$	189,979,729	$	—	$	—	$	189,979,729
Money Market Funds		16,651,952		—		—		16,651,952
	$	206,631,681	$	—	$	—	$	206,631,681
Morningstar Small-Cap Growth
Assets:
Common Stocks	$	132,336,210	$	—	$	—	$	132,336,210
Money Market Funds		14,529,036		—		—		14,529,036
	$	146,865,246	$	—	$	—	$	146,865,246
Morningstar Small-Cap Value
Assets:
Common Stocks	$	324,276,698	$	295,722	$	—	$	324,572,420
Money Market Funds		19,804,487		—		—		19,804,487
	$	344,081,185	$	295,722	$	—	$	344,376,907

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

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

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

74 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of October 31, 2013, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

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

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

iShares ETF	Investment Advisory Fee
Morningstar Large-Cap		0.20	%
Morningstar Large-Cap Growth		0.25
Morningstar Large-Cap Value		0.25
Morningstar Mid-Cap		0.25
Morningstar Mid-Cap Growth		0.30

iShares ETF	Investment Advisory Fee
Morningstar Mid-Cap Value		0.30	%
Morningstar Small-Cap		0.25
Morningstar Small-Cap Growth		0.30
Morningstar Small-Cap Value		0.30

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions.

NOTES TO FINANCIAL STATEMENTS 75

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended October 31, 2013, each Fund retained 65% of securities lending income and paid a fee to BTC equal to 35% of such income in the amounts as follows:

iShares ETF	Securities Lending Agent Fees
Morningstar Large-Cap	$	895
Morningstar Large-Cap Growth		4,384
Morningstar Large-Cap Value		547
Morningstar Mid-Cap		7,752
Morningstar Mid-Cap Growth		22,549

iShares ETF	Securities Lending Agent Fees
Morningstar Mid-Cap Value	$	8,714
Morningstar Small-Cap		39,175
Morningstar Small-Cap Growth		79,488
Morningstar Small-Cap Value		44,878

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.

Cross trades for the six months ended October 31, 2013, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. 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.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the statements of operations.

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

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the six months ended October 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
Morningstar Large-Cap
BlackRock Inc.		10,787		2,838		(13,625	)		—	$	—	$	18,633	$	672,637
Morningstar Large-Cap Growth
BlackRock Inc.		—		13,295		(542	)		12,753	$	3,836,230	$	21,035	$	8,723
Morningstar Large-Cap Value
PNC Financial Services Group Inc. (The)		33,135		24,137		(24,031	)		33,241	$	2,444,211	$	43,331	$	344,881

76 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold		Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
Morningstar Small-Cap Value
Pennymac Mortgage Investment Trust		45,215		—		—		45,215	$	1,043,110	$	51,545	$	—

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

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2013 were as follows:

iShares ETF	Purchases		Sales
Morningstar Large-Cap	$	81,682,496	$	81,270,305
Morningstar Large-Cap Growth		61,865,657		62,452,476
Morningstar Large-Cap Value		49,651,157		50,016,910
Morningstar Mid-Cap		47,914,295		47,967,531
Morningstar Mid-Cap Growth		30,365,028		30,261,451
Morningstar Mid-Cap Value		24,195,515		24,050,691
Morningstar Small-Cap		50,268,430		50,197,771
Morningstar Small-Cap Growth		36,450,552		36,362,399
Morningstar Small-Cap Value		74,455,120		73,157,824

In-kind transactions (see Note 4) for the six months ended October 31, 2013 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Morningstar Large-Cap	$	111,917,526	$	67,232,526
Morningstar Large-Cap Growth		9,240,190		33,676,106
Morningstar Large-Cap Value		181,175,942		188,593,873
Morningstar Mid-Cap		39,165,646		26,754,309
Morningstar Mid-Cap Growth		—		6,330,321
Morningstar Mid-Cap Value		15,214,087		—
Morningstar Small-Cap		33,869,586		26,915,874
Morningstar Small-Cap Growth		24,052,873		5,370,265
Morningstar Small-Cap Value		56,776,625		39,947,422

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

NOTES TO FINANCIAL STATEMENTS 77

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities 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 Funds and any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates.

As of October 31, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of October 31, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, a Fund can resell or re-pledge the collateral and the borrower can resell or re-pledge the loaned securities.

78 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

As of October 31, 2013, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:

iShares ETF	Market Value of Securities on Loan
Morningstar Large-Cap	$	3,302,807
Morningstar Large-Cap Growth		5,888,454
Morningstar Large-Cap Value		416,798
Morningstar Mid-Cap		9,255,302
Morningstar Mid-Cap Growth		13,671,886

iShares ETF	Market Value of Securities on Loan
Morningstar Mid-Cap Value	$	4,439,187
Morningstar Small-Cap		16,041,878
Morningstar Small-Cap Growth		13,964,810
Morningstar Small-Cap Value		18,663,442

The value of the related collateral disclosed in the Funds’ schedules of investments exceeded the market value of the securities on loan at period end.

6. INCOME TAX INFORMATION

For purposes of U.S. GAAP, 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 values per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

As of April 30, 2013, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2014		Expiring 2015		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
Morningstar Large-Cap	$	—	$	—	$	—	$	—	$	—	$	27,726,200	$	—	$	27,726,200
Morningstar Large-Cap Growth		23,875,944		754,949		3,087,927		881,226		27,706,178		66,358,290		982,680		123,647,194
Morningstar Large-Cap Value		1,608,032		35,116		468,973		672,390		19,478,955		36,252,824		5,511,604		64,027,894
Morningstar Mid-Cap		—		—		—		—		—		19,135,502		—		19,135,502
Morningstar Mid-Cap Growth		1,074,957		—		—		170,812		27,347,957		89,015,622		3,999,375		121,608,723
Morningstar Mid-Cap Value		—		—		—		—		6,135,743		16,451,751		—		22,587,494
Morningstar Small-Cap		2,771,152		—		—		—		—		21,697,098		—		24,468,250
Morningstar Small-Cap Growth		714,840		—		—		—		1,189,003		16,153,299		—		18,057,142
Morningstar Small-Cap Value		—		—		—		—		—		11,749,387		—		11,749,387

^a  Must be utilized prior to losses subject to expiration.

NOTES TO FINANCIAL STATEMENTS 79

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

As of October 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Morningstar Large-Cap	$	331,529,736	$	90,521,135	$	(3,209,886	)	$	87,311,249
Morningstar Large-Cap Growth		323,525,270		167,097,584		(3,366,370	)		163,731,214
Morningstar Large-Cap Value		263,572,352		21,131,630		(12,943,323	)		8,188,307
Morningstar Mid-Cap		190,354,994		50,624,297		(1,619,911	)		49,004,386
Morningstar Mid-Cap Growth		147,891,674		51,169,337		(3,264,937	)		47,904,400
Morningstar Mid-Cap Value		126,187,294		35,327,907		(3,952,914	)		31,374,993
Morningstar Small-Cap		167,463,973		41,487,531		(2,319,823	)		39,167,708
Morningstar Small-Cap Growth		117,238,803		33,164,708		(3,538,265	)		29,626,443
Morningstar Small-Cap Value		291,226,024		62,228,473		(9,077,590	)		53,150,883

Management has reviewed the tax positions as of October 31, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

7. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

80 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review And Approval of Investment Advisory

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iSHARES^® TRUST

I.  iShares Morningstar Large-Cap ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

The Board also noted that the investment advisory fee rate and overall expenses for the Fund compared favorably to the investment advisory fee rates and overall expenses of the funds in its respective Lipper Group.

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed,

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iSHARES^® TRUST

a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

82 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review And Approval of Investment Advisory

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iSHARES^® TRUST

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 83

Board Review And Approval of Investment Advisory

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iSHARES^® TRUST

shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

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

II.  iShares Morningstar Large-Cap Growth ETF, iShares Morningstar Large-Cap Value ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Mid-Cap Growth ETF, iShares Morningstar Mid-Cap Value ETF, iShares Morningstar Small-Cap ETF, iShares Morningstar Small-Cap Growth ETF and iShares Morningstar Small-Cap Value ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of each Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising such Fund’s applicable peer group pursuant to Lipper’s proprietary methodology, and any registered funds that would otherwise have been excluded from Lipper’s comparison group because of the size, sponsor, inception date, or other differentiating factors included in Lipper’s proprietary selection methodology, but that were nonetheless included at the request of BFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track indexes similar to those tracked by the Funds, the Lipper Group included in part mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers), as applicable. In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board also received

84 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review And Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

a detailed explanation from BFA regarding its rationale for including funds that had been excluded from Lipper’s consideration due to Lipper’s methodology parameters, as well as information showing the effect of including these additional funds in the analysis. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information provided in the Lipper Report may or may not provide meaningful direct comparisons to the Funds.

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

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

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Board Review And Approval of Investment Advisory

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Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

86 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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iSHARES^® TRUST

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

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 87

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

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

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Morningstar Large-Cap	$	0.979667	$	—	$	0.003737	$	0.983404		100	%		—	%		0	%a		100	%
Morningstar Large-Cap Growth		0.460902		—		0.007304		0.468206		98			—			2			100
Morningstar Large-Cap Value		0.965398		—		0.003488		0.968886		100			—			0	a		100
Morningstar Mid-Cap		0.758169		—		0.018858		0.777027		98			—			2			100
Morningstar Mid-Cap Growth		0.279810		—		0.019997		0.299807		93			—			7			100
Morningstar Mid-Cap Value		0.952717		—		0.023294		0.976011		98			—			2			100
Morningstar Small-Cap		0.467438		—		0.090590		0.558028		84			—			16			100
Morningstar Small-Cap Growth		0.319069		—		0.049041		0.368110		87			—			13			100
Morningstar Small-Cap Value		0.956765		—		0.054310		1.011075		95			—			5			100

^a Rounds to less than 1%.

88 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 89

Notes:

90 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

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

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

©2013 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.

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iS-SAR-44-1013

OCTOBER 31, 2013

2013 SEMI-ANNUAL REPORT (UNAUDITED)

iShares Trust

^Ø   iShares Asia Developed Real Estate ETF  |  IFAS  |  NASDAQ

^Ø   iShares Europe Developed Real Estate ETF  |  IFEU  |  NASDAQ

^Ø   iShares Industrial/Office Real Estate Capped ETF  |  FNIO  |  NYSE Arca

^Ø   iShares International Developed Real Estate ETF  |  IFGL  |  NASDAQ

^Ø   iShares Mortgage Real Estate Capped ETF  |  REM  |  NYSE Arca

^Ø   iShares North America Real Estate ETF  |  IFNA  |  NASDAQ

^Ø   iShares Real Estate 50 ETF  |  FTY  |  NYSE Arca

^Ø   iShares Residential Real Estate Capped ETF  |  REZ  |  NYSE Arca

^Ø   iShares Retail Real Estate Capped ETF  |  RTL  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	14
Shareholder Expenses	14
Schedules of Investments	15
iShares Asia Developed Real Estate ETF	15
iShares Europe Developed Real Estate ETF	17
iShares Industrial/Office Real Estate Capped ETF	19
iShares International Developed Real Estate ETF	20
iShares Mortgage Real Estate Capped ETF	24
iShares North America Real Estate ETF	25
iShares Real Estate 50 ETF	28
iShares Residential Real Estate Capped ETF	30
iShares Retail Real Estate Capped ETF	31
Financial Statements	32
Financial Highlights	43
Notes to Financial Statements	52
Board Review and Approval of Investment Advisory Contract	62
Supplemental Information	66

Fund Performance Overview

iSHARES^® ASIA DEVELOPED REAL ESTATE ETF

Performance as of October 31, 2013

The iShares Asia Developed Real Estate ETF (the “Fund”), formerly the iShares FTSE EPRA/NAREIT Developed Asia Index Fund, seeks to track the investment results of an index composed of real estate equities in developed Asian markets, as represented by the FTSE EPRA/NAREIT Developed Asia 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -8.17%, net of fees, while the total return for the Index was -7.87%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.55%		14.43%		15.33%		14.55%		14.43%		15.33%
5 Years		15.85%		15.12%		16.34%		108.68%		102.18%		113.14%
Since Inception		(0.79)%		(0.87)%		(0.46)%		(4.64)%		(5.09)%		(2.69)%

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	918.30	$	2.32	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Diversified Real Estate Activities	42.60	%
Retail REITs	16.41
Diversified REITs	10.78
Office REITs	9.16
Real Estate Operating Companies	8.65
Industrial REITs	5.96
Real Estate Development	5.09
Residential REITs	1.15
Specialized REITs	0.20
TOTAL	100.00	%

* Excludes money market funds.

COUNTRY ALLOCATION

As of 10/31/13

Country Percentage of
Total  Investments*

Japan	41.67	%
Hong Kong	25.42
Australia	20.20
Singapore	12.48
New Zealand	0.23
TOTAL	100.00	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

Performance as of October 31, 2013

The iShares Europe Developed Real Estate ETF (the “Fund”), formerly the iShares FTSE EPRA/NAREIT Developed Europe Index Fund, seeks to track the investment results of an index composed of real estate equities in developed European markets, as represented by the FTSE EPRA/NAREIT Developed Europe 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 7.73%, net of fees, while the total return for the Index was 7.89%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.67%		19.26%		19.00%		18.67%		19.26%		19.00%
5 Years		12.29%		12.16%		12.22%		78.50%		77.51%		78.01%
Since Inception		(1.63)%		(1.54)%		(1.72)%		(9.36)%		(8.83)%		(9.86)%

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,077.30	$	2.51	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector/Investment Type Percentage of
Total  Investments*

Retail REITs	29.37	%
Real Estate Operating Companies	26.82
Diversified REITs	25.72
Office REITs	6.76
Industrial REITs	3.90
Real Estate Development	2.34
Diversified Real Estate Activities	2.13
Investment Companies	1.65
Specialized REITs	0.93
Residential REITs	0.38
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST COUNTRY ALLOCATIONS

As of 10/31/13

Country Percentage of
Total  Investments*

United Kingdom	39.90	%
France	25.40
Germany	9.76
Switzerland	6.54
Sweden	6.50
Netherlands	4.68
Belgium	3.30
Finland	1.62
Austria	1.19
Italy	0.47
TOTAL	99.36	%

6 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® INDUSTRIAL/OFFICE REAL ESTATE CAPPED ETF

Performance as of October 31, 2013

The iShares Industrial/Office Real Estate Capped ETF (the “Fund”), formerly the iShares FTSE NAREIT Industrial/Office Capped Index Fund, seeks to track the investment results of an index composed of U.S. industrial and office real estate equities, as represented by the FTSE NAREIT Industrial/Office Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -4.34%, net of fees, while the total return for the Index was -4.11%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.12%		14.16%		14.71%		14.12%		14.16%		14.71%
5 Years		11.88%		13.02%		12.14%		75.31%		84.41%		77.35%
Since Inception		(3.30)%		(3.32)%		(3.37)%		(19.61)%		(19.70)%		(19.94)%

The inception date of the Fund was 5/1/07. The first day of secondary market trading was 5/4/07.

Index performance through March 1, 2009 reflects the performance of the FTSE NAREIT Industrial/Office Index. Index performance beginning on March 2, 2009 reflects the performance of the FTSE NAREIT Industrial/Office Capped Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	956.60	$	2.37	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Office REITs	56.85	%
Industrial REITs	26.53
Diversified REITs	14.30
Specialized REITs	2.32
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Prologis Inc.	17.73	%
Boston Properties Inc.	14.27
SL Green Realty Corp.	5.85
Liberty Property Trust	4.81
Duke Realty Corp.	4.65
Alexandria Real Estate Equities Inc.	4.52
Kilroy Realty Corp.	4.23
BioMed Realty Trust Inc.	4.02
Highwoods Properties Inc.	3.70
Douglas Emmett Inc.	3.41
TOTAL	67.19	%

FUND PERFORMANCE OVERVIEWS 7

Fund Performance Overview

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

Performance as of October 31, 2013

The iShares International Developed Real Estate ETF (the “Fund”), formerly the iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund, seeks to track the investment results of an index composed of real estate equities in developed non-U.S. markets, as represented by the FTSE EPRA/NAREIT Developed Real Estate ex-U.S. 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -4.82%, net of fees, while the total return for the Index was -4.56%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.67%		13.64%		14.25%		13.67%		13.64%		14.25%
5 Years		15.03%		14.43%		15.21%		101.38%		96.23%		102.99%
Since Inception		(0.75)%		(0.76)%		(0.59)%		(4.42)%		(4.48)%		(3.48)%

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	951.80	$	2.36	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector/Investment Type Percentage of
Total  Investments*

Diversified Real Estate Activities	28.24	%
Retail REITs	20.28
Diversified REITs	16.29
Real Estate Operating Companies	14.24
Office REITs	8.64
Industrial REITs	5.32
Real Estate Development	4.01
Residential REITs	1.67
Specialized REITs	0.78
Other**	0.53
TOTAL	100.00	%

TEN LARGEST COUNTRY ALLOCATIONS

As of 10/31/13

Country Percentage of
Total  Investments*

Japan	26.99	%
Hong Kong	16.75
Australia	13.10
United Kingdom	10.74
Singapore	8.07
Canada	7.88
France	6.80
Germany	2.65
Switzerland	1.76
Sweden	1.72
TOTAL	96.46	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

8 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® MORTGAGE REAL ESTATE CAPPED ETF

Performance as of October 31, 2013

The iShares Mortgage Real Estate Capped ETF (the “Fund”), formerly the iShares FTSE NAREIT Mortgage Plus Capped Index Fund, seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITS) that hold U.S. residential and commercial mortgages, as represented by the FTSE NAREIT All Mortgage Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -17.53%, net of fees, while the total return for the Index was -17.19%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(6.56)%		(6.51)%		(5.74)%		(6.56)%		(6.51)%		(5.74)%
5 Years		6.68%		6.75%		10.89%		38.15%		38.65%		67.64%
Since Inception		(9.77)%		(9.76)%		(5.38)%		(48.75)%		(48.73)%		(30.18)%

The inception date of the Fund was 5/1/07. The first day of secondary market trading was 5/4/07.

Index performance through March 1, 2009 reflects the performance of the FTSE NAREIT Mortgage REITs Index. Index performance beginning on March 2, 2009 reflects the performance of the FTSE NAREIT All Mortgage Capped Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	824.70	$	2.21	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Mortgage REITs	99.03	%
Diversified REITs	0.97
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Annaly Capital Management Inc.	17.65	%
American Capital Agency Corp.	13.70
Starwood Property Trust Inc.	7.95
Two Harbors Investment Corp.	5.21
MFA Financial Inc.	4.68
Chimera Investment Corp.	4.67
NorthStar Realty Finance Corp.	4.02
Invesco Mortgage Capital Inc.	3.90
Hatteras Financial Corp.	3.36
New Residential Investment Corp.	3.09
TOTAL	68.23	%

FUND PERFORMANCE OVERVIEWS 9

Fund Performance Overview

iSHARES^® NORTH AMERICA REAL ESTATE ETF

Performance as of October 31, 2013

The iShares North America Real Estate ETF (the “Fund”), formerly the iShares FTSE EPRA/NAREIT North America Index Fund, seeks to track the investment results of an index composed of real estate equities in North America, as represented by the FTSE EPRA/NAREIT North America 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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -7.42%, net of fees, while the total return for the Index was -7.58%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.02%		8.72%		8.58%		9.02%		8.72%		8.58%
5 Years		14.81%		14.40%		13.97%		99.50%		95.95%		92.30%
Since Inception		3.90%		3.80%		3.05%		25.69%		24.97%		19.66%

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	925.80	$	2.33	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Retail REITs	26.63	%
Specialized REITs	26.26
Residential REITs	15.78
Office REITs	12.70
Diversified REITs	11.58
Industrial REITs	5.24
Real Estate Operating Companies	1.71
Health Care Facilities	0.10
TOTAL	100.00	%

* Excludes money market funds.

COUNTRY ALLOCATION

As of 10/31/13

Country Percentage of
Total  Investments*

United States	91.77	%
Canada	8.23
TOTAL	100.00	%

10 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® REAL ESTATE 50 ETF

Performance as of October 31, 2013

The iShares Real Estate 50 ETF (the “Fund”), formerly the iShares FTSE NAREIT Real Estate 50 Index Fund, seeks to track the investment results of an index composed of 50 of the largest U.S. real estate equities, as represented by the FTSE NAREIT Real Estate 50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -8.90%, net of fees, while the total return for the Index was -8.69%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		5.88%		5.93%		6.46%		5.88%		5.93%		6.46%
5 Years		14.08%		13.98%		14.61%		93.20%		92.36%		97.73%
Since Inception		1.29%		1.24%		1.70%		8.66%		8.32%		11.55%

The inception date of the Fund was 5/1/07. The first day of secondary market trading was 5/4/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	911.00	$	2.31	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Specialized REITs	35.55	%
Retail REITs	24.28
Residential REITs	14.19
Office REITs	10.31
Diversified REITs	6.16
Mortgage REITs	5.35
Industrial REITs	4.16
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Simon Property Group Inc.	9.91	%
American Tower Corp.	6.57
Public Storage	4.99
Prologis Inc.	4.16
Ventas Inc.	4.01
HCP Inc.	3.93
Equity Residential	3.90
Health Care REIT Inc.	3.85
Weyerhaeuser Co.	3.70
AvalonBay Communities Inc.	3.38
TOTAL	48.40	%

FUND PERFORMANCE OVERVIEWS 11

Fund Performance Overview

iSHARES^® RESIDENTIAL REAL ESTATE CAPPED ETF

Performance as of October 31, 2013

The iShares Residential Real Estate Capped ETF (the “Fund”), formerly the iShares FTSE NAREIT Residential Plus Capped Index Fund, seeks to track the investment results of an index composed of U.S. residential, healthcare and self-storage real estate equities, as represented by the FTSE NAREIT All Residential Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -7.35%, net of fees, while the total return for the Index was -7.16%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		8.26%		8.28%		8.76%		8.26%		8.28%		8.76%
5 Years		14.41%		14.52%		14.34%		96.02%		96.93%		95.44%
Since Inception		4.57%		4.52%		4.63%		33.72%		33.31%		34.19%

The inception date of the Fund was 5/1/07. The first day of secondary market trading was 5/4/07.

Index performance through March 1, 2009 reflects the performance of the FTSE NAREIT Residential Index. Index performance beginning on March 2, 2009 reflects the performance of the FTSE NAREIT All Residential Capped Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	926.50	$	2.33	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Specialized REITs	54.90	%
Residential REITs	45.10
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Public Storage	10.77	%
Ventas Inc.	8.66
HCP Inc.	8.48
Equity Residential	8.42
Health Care REIT Inc.	8.33
UDR Inc.	4.25
AvalonBay Communities Inc.	4.20
Essex Property Trust Inc.	4.18
Camden Property Trust	3.72
Mid-America Apartment Communities Inc.	3.38
TOTAL	64.39	%

12 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® RETAIL REAL ESTATE CAPPED ETF

Performance as of October 31, 2013

The iShares Retail Real Estate Capped ETF (the “Fund”), formerly the iShares FTSE NAREIT Retail Capped Index Fund, seeks to track the investment results of an index composed of U.S. retail real estate equities, as represented by the FTSE NAREIT Retail Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended October 31, 2013, the total return for the Fund was -9.44%, net of fees, while the total return for the Index was -9.28%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.05%		9.21%		9.53%		9.05%		9.21%		9.53%
5 Years		15.93%		15.96%		15.99%		109.37%		109.71%		109.90%
Since Inception		0.10%		0.13%		(0.34)%		0.65%		0.85%		(2.21)%

The inception date of the Fund was 5/1/07. The first day of secondary market trading was 5/4/07.

Index performance through March 1, 2009 reflects the performance of the FTSE NAREIT Retail Index. Index performance beginning on March 2, 2009 reflects the performance of the FTSE NAREIT Retail Capped Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	905.60	$	2.31	$	1,000.00	$	1,022.80	$	2.45		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Retail REITs	94.29	%
Diversified REITs	5.71
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Simon Property Group Inc.	21.81	%
General Growth Properties Inc.	7.07
Kimco Realty Corp.	5.27
Macerich Co. (The)	5.03
Cole Real Estate Investment Inc.	5.00
Realty Income Corp.	4.93
DDR Corp.	4.78
Regency Centers Corp.	4.38
Federal Realty Investment Trust	4.32
Taubman Centers Inc.	3.87
TOTAL	66.46	%

FUND PERFORMANCE OVERVIEWS 13

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2013 and held through October 31, 2013, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

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

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

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

14 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® ASIA DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.64%
AUSTRALIA — 20.13%
BGP Holdings PLCa,b		539,595	$	7
BWP Trust		57,080		124,320
CFS Retail Property Trust Group		179,340		351,540
Charter Hall Retail REIT		30,040		114,923
Commonwealth Property Office Fund		213,260		241,326
Dexus Property Group		404,220		415,312
Federation Centres		115,820		271,996
Goodman Group		155,300		744,130
GPT Group		142,700		498,629
Investa Office Fund		51,930		152,935
Mirvac Group		332,310		547,545
Stockland Corp. Ltd.		209,000		793,629
Westfield Group		187,780		1,923,994
Westfield Retail Trust		257,370		753,084
				6,933,370
HONG KONG — 25.33%
Agile Property Holdings Ltd.		100,000		120,598
Champion REIT		230,000		102,644
Country Garden Holdings Co. Ltd.		380,027		259,787
Hang Lung Properties Ltd.		200,000		659,095
Henderson Land Development Co. Ltd.		90,800		538,144
Hongkong Land Holdings Ltd.		110,000		677,600
Hysan Development Co. Ltd.		60,000		280,535
Kerry Properties Ltd.		60,000		260,027
Link REIT (The)		205,000		1,033,851
New World China Land Ltd.		220,400		121,101
New World Development Co. Ltd.		336,000		465,448
Shimao Property Holdings Ltd.		120,000		302,126
Shui On Land Ltd.		275,000		95,769
Sino Land Co. Ltd.		280,800		394,052
SOHO China Ltd.c		140,000		122,610
Sun Hung Kai Properties Ltd.		139,000		1,821,528
Swire Properties Ltd.c		106,000		287,113
Wharf (Holdings) Ltd. (The)		140,200		1,180,833
				8,722,861
JAPAN — 41.52%
Activia Properties Inc.		18		156,865
Advance Residence Investment Corp.		110		249,129
AEON Mall Co. Ltd.		9,990		283,988
Daiwahouse Residential Investment Corp.		30		124,452
Frontier Real Estate Investment Corp.		18		180,349

Security	Shares		Value
GLP J-Reit		160	$	166,507
Hulic Co. Ltd.		27,000		428,213
Industrial & Infrastructure Fund Investment Corp.		10		92,753
Japan Excellent Inc.		20		123,942
Japan Logistics Fund Inc.		14		145,551
Japan Prime Realty Investment Corp.		70		233,310
Japan Real Estate Investment Corp.		50		573,336
Japan Retail Fund Investment Corp.		210		426,593
Kenedix Realty Investment Corp.		30		134,696
Mitsubishi Estate Co. Ltd.		114,000		3,250,005
Mitsui Fudosan Co. Ltd.		76,000		2,505,963
Mori Hills REIT Investment Corp.		20		140,455
MORI TRUST Sogo REIT Inc.c		20		178,167
Nippon Accommodations Fund Inc.		20		143,716
Nippon Building Fund Inc.		60		744,267
Nippon Prologis REIT Inc.		20		199,776
Nomura Real Estate Holdings Inc.		11,000		277,943
Nomura Real Estate Master Fund Inc.		150		153,807
Nomura Real Estate Office Fund Inc.		30		148,456
NTT Urban Development Corp.		10,000		127,102
ORIX JREIT Inc.		140		175,089
Premier Investment Corp.		10		40,974
Sumitomo Realty & Development Co. Ltd.		43,000		2,027,061
Tokyo Tatemono Co. Ltd.		40,000		373,866
TOKYU REIT Inc.		20		123,535
Top REIT Inc.		10		46,631
United Urban Investment Corp.		210		321,282
				14,297,779
NEW ZEALAND — 0.23%
Kiwi Income Property Trust		88,810		80,496
				80,496
SINGAPORE — 12.43%
Ascendas REIT		180,202		344,321
CapitaCommercial Trustc		170,000		202,161
CapitaLand Ltd.		230,000		578,546
CapitaMall Trust Management Ltd.		230,400		375,223
CapitaMalls Asia Ltd.		130,000		211,715
CDL Hospitality Trusts		50,000		67,118
City Developments Ltd.		50,000		415,205
Fortune REIT		110,000		88,817
Global Logistic Properties Ltd.		270,000		672,633
Keppel Land Ltd.		70,000		209,376
Keppel REIT Management Ltd.		130,000		126,819

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® ASIA DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
Mapletree Commercial Trust		110,000	$	111,743
Mapletree Industrial Trust		100,200		111,885
Mapletree Logistics Trust		130,240		114,978
Suntec REIT		190,000		262,708
UOL Group Ltd.		50,000		265,651
Wing Tai Holdings Ltd.		40,800		72,696
Yanlord Land Group Ltd.c		50,000		49,784
				4,281,379
TOTAL COMMON STOCKS
(Cost: $31,597,181)				34,315,885
RIGHTS — 0.00%
HONG KONG — 0.00%
New Hotela		4,200		—
				—
TOTAL RIGHTS
(Cost: $0)				—
SHORT-TERM INVESTMENTS — 1.97%
MONEY MARKET FUNDS — 1.97%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%d,e,f		628,356		628,356
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%d,e,f		36,518		36,518
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%d,e		14,345		14,345
				679,219
TOTAL SHORT-TERM INVESTMENTS
(Cost: $679,219)				679,219

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.61%
(Cost: $32,276,400)	$	34,995,104
Other Assets, Less Liabilities — (1.61)%		(554,401	)
NET ASSETS — 100.00%	$	34,440,703

^a  Non-income earning security.

^b  Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

^c  All or a portion of this security represents a security on loan. See Note 5.

^d  Affiliated issuer. See Note 2.

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

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

16 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 98.12%
AUSTRIA — 1.18%
CA Immobilien Anlagen AG		10,231	$	156,059
conwert Immobilien Invest SE		8,437		105,181
				261,240
BELGIUM — 3.30%
Aedifica		1,235		84,302
Befimmo SA		2,262		162,462
Cofinimmo SA		2,379		287,719
Intervest Offices & Warehouses		910		23,901
Leasinvest Real Estate SCA		273		27,279
Warehouses De Pauw SCA		1,495		111,155
Wereldhave Belgium NV		273		30,990
				727,808
FINLAND — 1.61%
Citycon OYJ		32,396		115,831
Sponda OYJ		33,787		175,466
Technopolis OYJ		9,516		64,685
				355,982
FRANCE — 25.34%
Affine SA		793		15,417
ANF Immobilier		1,014		30,452
Fonciere des Regions		4,745		407,499
Gecina SA		2,574		344,861
Icade		4,420		407,830
Klepierre		13,728		617,379
Mercialys		5,811		125,413
Societe de la Tour Eiffel		767		51,511
Unibail-Rodamco SE		13,689		3,591,765
				5,592,127
GERMANY — 9.74%
Alstria Office REIT AG		9,516		120,806
Deutsche Annington Immobilien SEa		5,057		132,000
Deutsche EuroShop AG		6,448		287,088
Deutsche Wohnen AG Bearer		23,764		447,777
DIC Asset AG		3,198		35,434
GAGFAH SAa		15,782		224,640
GSW Immobilien AG		7,111		330,480
Hamborner REIT AG		6,370		63,434
LEG Immobilien AGa		4,771		272,419
Prime Office REIT AGa		5,590		24,501
TAG Immobilien AG		17,420		210,774
				2,149,353

Security	Shares		Value
GREECE — 0.21%
Eurobank Properties Real Estate Investment Co.a		3,744	$	45,911
				45,911
ITALY — 0.47%
Beni Stabili SpA		116,519		80,154
Immobiliare Grande Distribuzione SpA		19,188		22,943
				103,097
NETHERLANDS — 4.67%
Corio NV		9,191		401,532
Eurocommercial Properties NV		4,875		207,575
Nieuwe Steen Investments NV		7,774		58,657
VastNed Retail NV		2,691		124,587
Wereldhave NV		3,055		238,107
				1,030,458
NORWAY — 0.43%
Norwegian Property ASA		73,619		94,318
				94,318
SWEDEN — 6.48%
Castellum AB		23,062		354,249
Fabege AB		18,239		210,264
Fastighets AB Balder Class Ba		12,766		112,942
Hufvudstaden AB Class A		15,587		204,381
Klovern AB		11,583		51,551
Kungsleden AB		19,162		140,953
Wallenstam AB Class B		14,040		195,378
Wihlborgs Fastigheter AB		9,282		160,651
				1,430,369
SWITZERLAND — 6.53%
Allreal Holding AG Registered		1,352		186,179
Mobimo Holding AG Registered		871		182,751
PSP Swiss Property AG Registered		5,603		482,617
Swiss Prime Site AG Registered		7,748		588,662
				1,440,209
UNITED KINGDOM — 38.16%
A&J Mucklow Group PLC		6,513		49,886
Big Yellow Group PLC		18,083		135,761
British Land Co. PLC		140,530		1,404,325
Capital & Counties Properties PLC		92,183		513,615
Daejan Holdings PLC		676		45,050
Derwent London PLC		12,870		517,751
Development Securities PLC		17,381		65,483
Grainger PLC		57,993		181,219
Great Portland Estates PLC		48,360		445,194

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Unaudited) (Continued)

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
Hammerson PLC		99,606	$	846,543
Hansteen Holdings PLC		89,934		149,690
Helical Bar PLC		13,923		67,106
Intu Properties PLC		95,277		526,874
Land Securities Group PLC		109,590		1,740,427
LondonMetric Property PLC		82,407		170,790
Primary Health Properties PLC		13,247		68,956
Quintain Estates and Development PLCa		64,454		100,445
Safestore Holdings PLC		26,559		63,258
Schroder REIT Ltd.		49,894		38,877
SEGRO PLC		104,338		547,813
Shaftesbury PLC		35,243		336,331
St. Modwen Properties PLC		23,231		131,489
UNITE Group PLC		24,856		158,137
Workspace Group PLC		14,638		115,094
				8,420,114
TOTAL COMMON STOCKS
(Cost: $19,495,452)				21,650,986
INVESTMENT COMPANIES — 1.64%
UNITED KINGDOM — 1.64%
F&C Commercial Property Trust Ltd.		69,732		131,637
IRP Property Investments Ltd.		30,043		38,011
Medicx Fund Ltd.		44,862		57,660
Picton Property Income Ltd.		49,218		42,305
Standard Life Investment Property Income Trust PLC		21,281		23,249
UK Commercial Property Trust Ltd.		57,447		69,682
				362,544
TOTAL INVESTMENT COMPANIES
(Cost: $343,068)				362,544
SHORT-TERM INVESTMENTS — 0.03%
MONEY MARKET FUNDS — 0.03%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,c		6,892		6,892
				6,892
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,892)				6,892

	Value
TOTAL INVESTMENTS IN SECURITIES — 99.79%
(Cost: $19,845,412)	$	22,020,422
Other Assets, Less Liabilities — 0.21%		46,814
NET ASSETS — 100.00%	$	22,067,236

^a  Non-income earning security.

^b  Affiliated issuer. See Note 2.

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

See notes to financial statements.

18 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® INDUSTRIAL/OFFICE REAL ESTATE CAPPED ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.81%
DIVERSIFIED REITs — 14.27%
Chambers Street Propertiesa		41,910	$	391,020
Duke Realty Corp.a		47,953		794,581
First Potomac Realty Trust		10,539		129,525
Gladstone Commercial Corp.a		2,358		44,566
Liberty Property Trusta		22,092		821,602
PS Business Parks Inc.		3,227		262,968
				2,444,262
INDUSTRIAL REITs — 26.48%
DCT Industrial Trust Inc.		57,420		445,005
EastGroup Properties Inc.		5,594		356,114
First Industrial Realty Trust Inc.		19,831		358,346
Monmouth Real Estate Investment Corp. Class A		6,876		63,396
Prologis Inc.		75,844		3,029,968
Rexford Industrial Realty Inc.b		3,240		44,129
STAG Industrial Inc.		7,714		161,300
Terreno Realty Corp.		4,257		75,689
				4,533,947
OFFICE REITs — 56.75%
Alexandria Real Estate Equities Inc.		11,740		772,257
BioMed Realty Trust Inc.		34,518		687,599
Boston Properties Inc.		23,575		2,440,012
Brandywine Realty Trusta		28,512		405,726
CommonWealth REITa		21,127		514,865
Corporate Office Properties Trust		14,794		363,932
Douglas Emmett Inc.		23,376		582,764
Franklin Street Properties Corp.		16,014		211,385
Government Properties Income Trust		7,625		186,431
Highwoods Properties Inc.		16,372		631,959
Hudson Pacific Properties Inc.		7,854		162,499
Kilroy Realty Corp.		13,595		722,710
Mack-Cali Realty Corp.		15,929		327,500
Parkway Properties Inc.a		8,232		149,082
Piedmont Office Realty Trust Inc. Class A		30,245		558,928
SL Green Realty Corp.a		10,577		1,000,267
				9,717,916
SPECIALIZED REITs — 2.31%
Healthcare Trust of America Inc. Class A		32,059		372,526

Security	Shares		Value
Physicians Realty Trust		1,879	$	23,600
				396,126
TOTAL COMMON STOCKS
(Cost: $14,438,023)				17,092,251
SHORT-TERM INVESTMENTS — 11.24%
MONEY MARKET FUNDS — 11.24%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		1,796,082		1,796,082
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		104,383		104,383
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		25,301		25,301
				1,925,766
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,925,766)				1,925,766
TOTAL INVESTMENTS IN SECURITIES — 111.05%
(Cost: $16,363,789)				19,018,017
Other Assets, Less Liabilities — (11.05)%				(1,892,499	)
NET ASSETS — 100.00%			$	17,125,518

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Non-income earning security.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Unaudited)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.08%
AUSTRALIA — 13.03%
BGP Holdings PLCa,b		6,603,392	$	90
BWP Trust		846,000		1,842,574
CFS Retail Property Trust Group		2,680,410		5,254,103
Charter Hall Retail REIT		450,260		1,722,550
Commonwealth Property Office Fund		3,197,880		3,618,738
Dexus Property Group		6,047,255		6,213,196
Federation Centres		1,738,765		4,083,378
Goodman Group		2,327,440		11,152,084
GPT Group		2,134,975		7,460,127
Investa Office Fund		780,435		2,298,392
Mirvac Group		4,977,300		8,201,063
Stockland Corp. Ltd.		3,138,425		11,917,445
Westfield Group		2,821,175		28,905,755
Westfield Retail Trust		3,857,760		11,288,097
				103,957,592
AUSTRIA — 0.32%
CA Immobilien Anlagen AG		99,640		1,519,867
conwert Immobilien Invest SE		83,425		1,040,026
				2,559,893
BELGIUM — 0.92%
Aedifica		12,220		834,143
Befimmo SA		22,325		1,603,434
Cofinimmo SA		23,265		2,813,693
Intervest Offices & Warehouses		10,340		271,586
Leasinvest Real Estate SCA		3,290		328,747
Warehouses De Pauw SCA		14,570		1,083,294
Wereldhave Belgium NV		3,290		373,475
				7,308,372
CANADA — 7.85%
Allied Properties Real Estate Investment Trust		92,120		2,963,634
Artis Real Estate Investment Trust		169,905		2,349,360
Boardwalk Real Estate Investment Trust		53,580		3,047,255
Brookfield Office Properties Inc.		340,045		6,351,898
Calloway Real Estate Investment Trust		135,360		3,257,933
Canadian Apartment Properties Real Estate Investment Trust		135,830		2,804,257
Canadian Real Estate Investment Trust		92,120		3,751,581

Security	Shares		Value
Chartwell Retirement Residences		236,410	$	2,430,182
Cominar Real Estate Investment Trust		167,555		3,051,129
Crombie Real Estate Investment Trust		75,905		964,416
Dundee International Real Estate Investment Trust		130,895		1,138,436
Dundee Real Estate Investment Trust		139,825		3,876,244
Extendicare Inc.		117,030		750,761
First Capital Realty Inc.		109,980		1,910,953
Granite Real Estate Investment Trust		63,450		2,203,729
H&R Real Estate Investment Trust		364,015		7,539,650
InnVest Real Estate Investment Trust		108,805		424,640
Killam Properties Inc.		69,325		731,906
Morguard Real Estate Investment Trust		47,000		766,170
Northern Property Real Estate Investment Trust		42,535		1,142,043
NorthWest Healthcare Properties Real Estate Investment Trust		42,300		447,804
Pure Industrial Real Estate Trust		174,135		773,117
RioCan Real Estate Investment Trust		406,315		9,915,824
				62,592,922
FINLAND — 0.43%
Citycon OYJ		310,905		1,111,635
Sponda OYJ		326,650		1,696,387
Technopolis OYJc		94,705		643,757
				3,451,779
FRANCE — 6.77%
Affine SA		6,815		132,489
ANF Immobilier		9,870		296,409
Fonciere des Regions		45,825		3,935,431
Gecina SA		24,910		3,337,408
Icade		42,300		3,902,988
Klepierre		133,245		5,992,325
Mercialys		57,340		1,237,515
Societe de la Tour Eiffel		7,755		520,820
Unibail-Rodamco SE		132,070		34,652,967
				54,008,352
GERMANY — 2.63%
Alstria Office REIT AG		93,060		1,181,397

20 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
Deutsche Annington Immobilien SEa		49,115	$	1,282,019
Deutsche EuroShop AG		63,215		2,814,559
Deutsche Wohnen AG Bearer		230,770		4,348,320
DIC Asset AG		31,725		351,510
GAGFAH SAa		153,220		2,180,927
GSW Immobilien AG		69,325		3,221,843
Hamborner REIT AG		69,795		695,042
LEG Immobilien AGa		46,060		2,629,978
Prime Office REIT AGa		52,405		229,693
TAG Immobilien AG		172,960		2,092,737
				21,028,025
HONG KONG — 16.67%
Agile Property Holdings Ltd.		1,880,000		2,267,237
Champion REITc		3,290,000		1,468,248
Country Garden Holdings Co. Ltd.c		5,640,459		3,855,829
Hang Lung Properties Ltd.		3,055,000		10,067,683
Henderson Land Development Co. Ltd.		1,410,400		8,359,017
Hongkong Land Holdings Ltd.c		1,645,000		10,133,200
Hysan Development Co. Ltd.		940,000		4,395,045
Kerry Properties Ltd.		940,000		4,073,752
Link REIT (The)		3,172,500		15,999,478
New World China Land Ltd.c		3,290,200		1,807,837
New World Development Co. Ltd.		4,954,000		6,862,584
Shimao Property Holdings Ltd.c		1,880,000		4,733,311
Shui On Land Ltd.		3,995,066		1,391,282
Sino Land Co. Ltd.		4,230,800		5,937,161
SOHO China Ltd.c		1,997,797		1,749,639
Sun Hung Kai Properties Ltd.		2,115,000		27,716,060
Swire Properties Ltd.		1,598,000		4,328,361
Wharf (Holdings) Ltd. (The)		2,115,900		17,821,150
				132,966,874
ISRAEL — 0.20%
Azrieli Group Ltd.		48,880		1,575,094
				1,575,094
ITALY — 0.13%
Beni Stabili SpA		1,139,280		783,718
Immobiliare Grande Distribuzione SpA		191,525		229,003
				1,012,721
JAPAN — 26.86%
Activia Properties Inc.		235		2,047,956
Advance Residence Investment Corp.		1,645		3,725,604

Security	Shares		Value
AEON Mall Co. Ltd.		153,900	$	4,374,958
Daiwahouse Residential Investment Corp.c		470		1,949,750
Frontier Real Estate Investment Corp.		235		2,354,551
GLP J-Reit		2,350		2,445,571
Hulic Co. Ltd.		399,500		6,335,970
Industrial & Infrastructure Fund Investment Corp.		235		2,179,696
Japan Excellent Inc.		235		1,456,325
Japan Logistics Fund Inc.		235		2,443,176
Japan Prime Realty Investment Corp.		1,175		3,916,268
Japan Real Estate Investment Corp.		785		9,001,376
Japan Retail Fund Investment Corp.		3,055		6,205,907
Kenedix Realty Investment Corp.		470		2,110,233
Mitsubishi Estate Co. Ltd.		1,719,000		49,006,656
Mitsui Fudosan Co. Ltd.		1,175,000		38,743,502
Mori Hills REIT Investment Corp.		235		1,650,342
MORI TRUST Sogo REIT Inc.c		235		2,093,467
Nippon Accommodations Fund Inc.		235		1,688,666
Nippon Building Fund Inc.		940		11,660,177
Nippon Prologis REIT Inc.		235		2,347,365
Nomura Real Estate Holdings Inc.		164,500		4,156,513
Nomura Real Estate Master Fund Inc.		2,350		2,409,642
Nomura Real Estate Office Fund Inc.		470		2,325,808
NTT Urban Development Corp.		164,500		2,090,832
ORIX JREIT Inc.		2,115		2,645,097
Premier Investment Corp.		235		962,899
Sumitomo Realty & Development Co. Ltd.		636,000		29,981,653
Tokyo Tatemono Co. Ltd.		470,000		4,392,926
TOKYU REIT Inc.		235		1,451,534
Top REIT Inc.		235		1,095,836
United Urban Investment Corp.		3,290		5,033,422
				214,283,678
NETHERLANDS — 1.25%
Corio NV		88,595		3,870,494
Eurocommercial Properties NV		47,000		2,001,237
Nieuwe Steen Investments NV		73,555		554,989
VastNed Retail NV		26,085		1,207,677
Wereldhave NV		29,610		2,307,806
				9,942,203

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Unaudited) (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
NEW ZEALAND — 0.16%
Kiwi Income Property Trust		1,428,330	$	1,294,619
				1,294,619
NORWAY — 0.11%
Norwegian Property ASA		722,390		925,495
				925,495
SINGAPORE — 8.03%
Ascendas REIT		2,585,402		4,940,059
CapitaCommercial Trustc		2,585,000		3,074,031
CapitaLand Ltd.		3,525,000		8,866,852
CapitaMall Trust Management Ltd.		3,525,400		5,741,370
CapitaMalls Asia Ltd.		1,880,000		3,061,716
CDL Hospitality Trusts		705,000		946,366
City Developments Ltd.c		705,000		5,854,396
Fortune REITc		1,645,000		1,328,213
Global Logistic Properties Ltd.		4,230,000		10,537,913
Keppel Land Ltd.c		1,175,000		3,514,532
Keppel REIT Management Ltd.c		1,920,000		1,873,020
Mapletree Commercial Trust		1,645,000		1,671,061
Mapletree Industrial Trustc		1,645,800		1,837,734
Mapletree Logistics Trust		1,880,210		1,659,878
Suntec REIT		2,820,000		3,899,141
UOL Group Ltd.		705,000		3,745,677
Wing Tai Holdings Ltd.		470,000		837,425
Yanlord Land Group Ltd.c		705,000		701,959
				64,091,343
SWEDEN — 1.72%
Castellum AB		221,840		3,407,623
Fabege AB		174,370		2,010,184
Fastighets AB Balder Class Ba		124,080		1,097,748
Hufvudstaden AB Class A		146,170		1,916,617
Klovern AB		109,510		487,384
Kungsleden AB		183,770		1,351,782
Wallenstam AB Class B		133,245		1,854,214
Wihlborgs Fastigheter AB		90,475		1,565,928
				13,691,480
SWITZERLAND — 1.75%
Allreal Holding AG Registered		12,690		1,747,494
Mobimo Holding AG Registered		8,695		1,824,361
PSP Swiss Property AG Registered		54,285		4,675,866
Swiss Prime Site AG Registered		74,965		5,695,535
				13,943,256
UNITED KINGDOM — 10.25%
A&J Mucklow Group PLC		64,860		496,793

Security	Shares		Value
Big Yellow Group PLC		173,195	$	1,300,287
British Land Co. PLC		1,357,830		13,568,876
Capital & Counties Properties PLC		902,165		5,026,586
Daejan Holdings PLC		6,815		454,164
Derwent London PLC		125,490		5,048,374
Development Securities PLC		168,025		633,031
Grainger PLC		556,010		1,737,442
Great Portland Estates PLC		471,880		4,344,045
Hammerson PLC		965,850		8,208,682
Hansteen Holdings PLC		879,840		1,464,440
Helical Bar PLC		139,120		670,531
Intu Properties PLC		922,140		5,099,362
Land Securities Group PLC		1,059,615		16,828,014
LondonMetric Property PLC		799,470		1,656,914
Primary Health Properties PLC		122,200		636,098
Quintain Estates and Development PLCa		634,265		988,441
Safestore Holdings PLC		265,080		631,364
Schroder REIT Ltd.		523,110		407,608
SEGRO PLC		1,013,320		5,320,308
Shaftesbury PLC		343,805		3,281,004
St. Modwen Properties PLC		223,250		1,263,607
UNITE Group PLC		237,585		1,511,549
Workspace Group PLC		147,110		1,156,683
				81,734,203
TOTAL COMMON STOCKS
(Cost: $744,420,067)				790,367,901
INVESTMENT COMPANIES — 0.44%
UNITED KINGDOM — 0.44%
F&C Commercial Property Trust Ltd.		687,375		1,297,597
IRP Property Investments Ltd.		234,765		297,024
Medicx Fund Ltd.		429,291		551,760
Picton Property Income Ltd.		496,555		426,805
Standard Life Investment Property Income Trust PLC		207,035		226,183
UK Commercial Property Trust Ltd.		566,350		686,973
				3,486,342
TOTAL INVESTMENT COMPANIES
(Cost: $3,186,072)				3,486,342

22 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
RIGHTS — 0.00%
HONG KONG — 0.00%
New Hotela		57,463	$	—
				—
TOTAL RIGHTS
(Cost: $0)				—
SHORT-TERM INVESTMENTS — 1.33%
MONEY MARKET FUNDS — 1.33%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%d,e,f		9,754,375		9,754,375
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%d,e,f		566,895		566,895
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%d,e		278,589		278,589
				10,599,859
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,599,859)				10,599,859
TOTAL INVESTMENTS IN SECURITIES — 100.85%
(Cost: $758,205,998)				804,454,102
Other Assets, Less Liabilities — (0.85)%				(6,780,230	)
NET ASSETS — 100.00%			$	797,673,872

^a  Non-income earning security.

^b  Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.

^c  All or a portion of this security represents a security on loan. See Note 5.

^d  Affiliated issuer. See Note 2.

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

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Unaudited)

iSHARES^® MORTGAGE REAL ESTATE CAPPED ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.94%
DIVERSIFIED REITs — 0.97%
RAIT Financial Trusta		1,324,987	$	10,003,652
				10,003,652
MORTGAGE REITs — 98.97%
AG Mortgage Investment Trust Inc.		512,478		8,373,891
American Capital Agency Corp.		6,495,969		141,092,447
American Capital Mortgage Investment Corp.		1,091,593		20,860,342
Annaly Capital Management Inc.		15,422,810		181,834,930
Anworth Mortgage Asset Corp.		2,711,567		13,313,794
Apollo Commercial Real Estate Finance Inc.		733,102		11,810,273
Apollo Residential Mortgage Inc.		613,578		9,240,485
Arbor Realty Trust Inc.		784,268		5,215,382
Ares Commercial Real Estate Corp.		500,525		6,221,526
ARMOUR Residential REIT Inc.a		7,071,192		29,133,311
Capstead Mortgage Corp.		1,797,727		21,267,111
Chimera Investment Corp.		15,878,545		48,111,991
Colony Financial Inc.		1,234,727		24,978,527
CYS Investments Inc.		3,265,649		27,725,360
Dynex Capital Inc.		1,054,494		9,110,828
Five Oaks Investment Corp.		92,163		1,094,896
Hannon Armstrong Sustainable Infrastructure Capital Inc.		276,257		3,384,148
Hatteras Financial Corp.		1,902,257		34,621,077
Invesco Mortgage Capital Inc.		2,601,036		40,186,006
iStar Financial Inc.a,b		1,611,567		20,354,091
MFA Financial Inc.		6,498,111		48,151,003
New Residential Investment Corp.		4,808,478		31,784,040
New York Mortgage Trust Inc.a		1,215,197		7,801,565
Newcastle Investment Corp.		5,301,167		30,428,699
NorthStar Realty Finance Corp.a		4,442,610		41,449,551
PennyMac Mortgage Investment Trustc		965,218		22,267,579
Redwood Trust Inc.a		1,284,431		22,503,231
Resource Capital Corp.		2,305,881		14,181,168
Starwood Property Trust Inc.		3,186,348		81,857,280
Two Harbors Investment Corp.		5,746,368		53,613,614

Security	Shares		Value
Western Asset Mortgage Capital Corp.a		365,483	$	5,887,931
ZAIS Financial Corp.		119,510		2,079,474
				1,019,935,551
TOTAL COMMON STOCKS
(Cost: $1,189,896,448)				1,029,939,203
SHORT-TERM INVESTMENTS — 6.20%
MONEY MARKET FUNDS — 6.20%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		59,155,106		59,155,106
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		3,437,915		3,437,915
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		1,334,668		1,334,668
				63,927,689
TOTAL SHORT-TERM INVESTMENTS
(Cost: $63,927,689)				63,927,689
TOTAL INVESTMENTS IN SECURITIES — 106.14%
(Cost: $1,253,824,137)				1,093,866,892
Other Assets, Less Liabilities — (6.14)%				(63,332,212	)
NET ASSETS — 100.00%			$	1,030,534,680

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Non-income earning security.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

24 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® NORTH AMERICA REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.75%
CANADA — 8.21%
Allied Properties Real Estate Investment Trust		3,540	$	113,887
Artis Real Estate Investment Trust		6,600		91,261
Boardwalk Real Estate Investment Trust		2,064		117,386
Brookfield Office Properties Inc.		13,176		246,122
Calloway Real Estate Investment Trust		5,304		127,660
Canadian Apartment Properties Real Estate Investment Trust		5,292		109,255
Canadian Real Estate Investment Trust		3,552		144,655
Chartwell Retirement Residences		9,036		92,886
Cominar Real Estate Investment Trust		6,516		118,654
Crombie Real Estate Investment Trust		2,844		36,135
Dundee International Real Estate Investment Trust		4,968		43,208
Dundee Real Estate Investment Trust		5,436		150,697
Extendicare Inc.		4,596		29,484
First Capital Realty Inc.		4,320		75,062
Granite Real Estate Investment Trust		2,472		85,857
H&R Real Estate Investment Trust		14,028		290,555
InnVest Real Estate Investment Trust		4,512		17,609
Killam Properties Inc.		2,676		28,252
Morguard Real Estate Investment Trust		1,860		30,321
Northern Property Real Estate Investment Trust		1,668		44,785
NorthWest Healthcare Properties Real Estate Investment Trust		1,620		17,150
Pure Industrial Real Estate Trust		7,236		32,126
RioCan Real Estate Investment Trust		15,756		384,514
				2,427,521
UNITED STATES — 91.54%
Acadia Realty Trusta		2,892		77,130
Agree Realty Corp.		684		21,594
Alexander’s Inc.		108		34,750
Alexandria Real Estate Equities Inc.		3,756		247,070
American Assets Trust Inc.		1,812		60,321
American Campus Communities Inc.		5,508		190,356
American Homes 4 Rentb		2,484		38,452

Security	Shares		Value
American Realty Capital Properties Inc.		9,696	$	128,666
Apartment Investment and Management Co. Class A		7,668		214,551
Ashford Hospitality Trust Inc.		3,336		43,568
Associated Estates Realty Corp.		2,640		40,498
AvalonBay Communities Inc.		6,780		847,839
BioMed Realty Trust Inc.		10,104		201,272
Boston Properties Inc.		7,956		823,446
Brandywine Realty Trust		8,280		117,824
BRE Properties Inc. Class A		4,020		219,532
Camden Property Trust		4,440		285,048
Campus Crest Communities Inc.		3,456		34,595
CapLease Inc.		4,716		40,086
CBL & Associates Properties Inc.		8,928		176,864
Cedar Realty Trust Inc.		3,816		21,789
Chambers Street Properties		12,444		116,102
Chesapeake Lodging Trust		2,556		60,245
Cole Real Estate Investment Inc.		24,672		350,342
CommonWealth REIT		6,192		150,899
Corporate Office Properties Trust		4,332		106,567
Cousins Properties Inc.		9,300		105,369
CubeSmart		7,116		130,009
DCT Industrial Trust Inc.		16,656		129,084
DDR Corp.		15,984		270,929
DiamondRock Hospitality Co.		10,332		117,681
Digital Realty Trust Inc.a		6,720		320,275
Douglas Emmett Inc.		6,960		173,513
Duke Realty Corp.		17,088		283,148
DuPont Fabros Technology Inc.a		3,396		84,391
EastGroup Properties Inc.a		1,608		102,365
Education Realty Trust Inc.		6,012		54,950
Empire State Realty Trust Inc.b		3,756		53,147
EPR Properties		2,472		126,987
Equity Lifestyle Properties, Inc.		3,948		149,984
Equity One Inc.		3,132		75,513
Equity Residential		18,672		977,666
Essex Property Trust Inc.		1,992		320,712
Excel Trust Inc.		2,424		29,282
Extra Space Storage Inc.		5,484		252,209
Federal Realty Investment Trust		3,456		358,042
FelCor Lodging Trust Inc.b		6,516		43,788
First Industrial Realty Trust Inc.		5,820		105,167
First Potomac Realty Trust		3,060		37,607
Forest City Enterprises Inc. Class Ab		7,716		156,326

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Unaudited) (Continued)

iSHARES^® NORTH AMERICA REAL ESTATE ETF

October 31, 2013

Security	Shares		Value
Franklin Street Properties Corp.		4,656	$	61,459
General Growth Properties Inc.		28,944		614,481
Getty Realty Corp.		1,332		25,548
Glimcher Realty Trust		7,656		78,474
Government Properties Income Trust		2,868		70,123
HCP Inc.a		23,724		984,546
Health Care REIT Inc.		14,916		967,303
Healthcare Realty Trust Inc.		5,040		121,010
Hersha Hospitality Trust		9,168		51,983
Highwoods Properties Inc.a		4,752		183,427
Home Properties Inc.		2,988		180,206
Hospitality Properties Trust		7,344		215,767
Host Hotels & Resorts Inc.		39,084		725,008
Hudson Pacific Properties Inc.		2,268		46,925
Inland Real Estate Corp.		4,524		48,362
Investors Real Estate Trust		5,508		47,479
Kilroy Realty Corp.		3,984		211,789
Kimco Realty Corp.		21,300		457,524
Kite Realty Group Trust		4,824		30,874
LaSalle Hotel Properties		5,028		156,119
Lexington Realty Trust		11,436		133,801
Liberty Property Trusta		7,524		279,818
LTC Properties Inc.		1,848		72,904
Macerich Co. (The)		7,392		437,680
Mack-Cali Realty Corp.		4,620		94,987
Medical Properties Trust Inc.a		8,520		111,101
Mid-America Apartment Communities Inc.		3,912		259,757
National Health Investors Inc.		1,296		81,026
National Retail Properties Inc.a		6,360		218,784
Omega Healthcare Investors Inc.a		6,108		203,030
Parkway Properties Inc.		2,328		42,160
Pebblebrook Hotel Trust		3,240		97,848
Pennsylvania Real Estate Investment Trust		3,481		63,111
Piedmont Office Realty Trust Inc. Class Aa		8,748		161,663
Post Properties Inc.		2,844		130,085
Prologis Inc.		26,124		1,043,654
PS Business Parks Inc.		948		77,253
Public Storage		7,500		1,252,275
Ramco-Gershenson Properties Trust		3,240		52,682
Realty Income Corp.		10,272		427,829
Regency Centers Corp.		4,824		249,208
Retail Opportunity Investments Corp.		3,744		55,411
RLJ Lodging Trust		6,420		162,169

Security	Shares		Value
Rouse Properties Inc.a		1,212	$	24,507
Sabra Healthcare REIT Inc.		1,968		52,939
Saul Centers Inc.a		672		31,584
Select Income REIT		1,452		40,003
Senior Housing Properties Trust		9,876		243,345
Silver Bay Realty Trust Corp.		1,980		30,611
Simon Property Group Inc.		16,092		2,487,019
SL Green Realty Corp.		4,046		382,630
Sovran Self Storage Inc.a		1,656		126,667
Spirit Realty Capital Inc.		18,696		195,560
STAG Industrial Inc.		2,256		47,173
Strategic Hotels & Resorts Inc.a,b		8,856		77,047
Sun Communities Inc.a		1,824		81,296
Sunstone Hotel Investors Inc.a		8,604		114,003
Tanger Factory Outlet Centers Inc.		4,944		172,298
Taubman Centers Inc.		3,336		219,475
UDR Inc.		13,152		326,301
Universal Health Realty Income Trust		532		23,365
Urstadt Biddle Properties Inc. Class A		963		19,010
Ventas Inc.		15,408		1,005,218
Vornado Realty Trust		8,784		782,303
Washington Real Estate Investment Trusta		3,468		90,896
Weingarten Realty Investorsa		5,724		181,622
Winthrop Realty Trust		1,584		18,644
WP Carey Inc.		3,036		202,228
				27,069,937
TOTAL COMMON STOCKS
(Cost: $28,267,114)				29,497,458
SHORT-TERM INVESTMENTS — 9.58%
MONEY MARKET FUNDS — 9.58%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		2,654,611		2,654,611
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		154,278		154,278
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		23,452		23,452
				2,832,341
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,832,341)				2,832,341

26 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® NORTH AMERICA REAL ESTATE ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 109.33%
(Cost: $31,099,455)	$	32,329,799
Other Assets, Less Liabilities — (9.33)%		(2,759,965	)
NET ASSETS — 100.00%	$	29,569,834

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Non-income earning security.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Unaudited)

iSHARES^® REAL ESTATE 50 ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.83%
DIVERSIFIED REITs — 6.15%
Duke Realty Corp.		53,241	$	882,203
Liberty Property Trust		23,402		870,320
Vornado Realty Trust		27,459		2,445,499
WP Carey Inc.		9,497		632,595
				4,830,617
INDUSTRIAL REITs — 4.15%
Prologis Inc.		81,659		3,262,277
				3,262,277
MORTGAGE REITs — 5.34%
American Capital Agency Corp.		64,981		1,411,387
Annaly Capital Management Inc.a		155,258		1,830,492
MFA Financial Inc.		56,374		417,732
Two Harbors Investment Corp.		57,525		536,708
				4,196,319
OFFICE REITs — 10.30%
Alexandria Real Estate Equities Inc.		11,704		769,889
BioMed Realty Trust Inc.		31,525		627,978
Boston Properties Inc.		24,854		2,572,389
Digital Realty Trust Inc.a		21,060		1,003,720
Douglas Emmett Inc.		21,738		541,928
Kilroy Realty Corp.		12,372		657,696
Piedmont Office Realty Trust Inc. Class A		27,305		504,596
SL Green Realty Corp.		14,958		1,414,578
				8,092,774
RESIDENTIAL REITs — 14.16%
American Campus Communities Inc.		17,164		593,188
Apartment Investment and Management Co. Class A		23,860		667,603
AvalonBay Communities Inc.		21,205		2,651,685
BRE Properties Inc. Class A		12,576		686,775
Camden Property Trust		13,895		892,059
Equity Residential		58,413		3,058,505
Essex Property Trust Inc.		6,222		1,001,742
Home Properties Inc.		9,325		562,391
UDR Inc.		40,966		1,016,366
				11,130,314
RETAIL REITs — 24.24%
CBL & Associates Properties Inc.		27,875		552,204
DDR Corp.		50,059		848,500
Federal Realty Investment Trust		10,777		1,116,497

Security	Shares		Value
General Growth Properties Inc.		90,331	$	1,917,727
Kimco Realty Corp.		66,519		1,428,828
Macerich Co. (The)		23,038		1,364,080
National Retail Properties Inc.a		19,868		683,459
Realty Income Corp.		32,036		1,334,300
Regency Centers Corp.		15,011		775,468
Simon Property Group Inc.		50,331		7,778,656
Taubman Centers Inc.		10,437		686,650
Weingarten Realty Investorsa		17,843		566,159
				19,052,528
SPECIALIZED REITs — 35.49%
American Tower Corp.		65,007		5,158,305
Extra Space Storage Inc.		17,091		786,015
HCP Inc.		74,228		3,080,462
Health Care REIT Inc.a		46,619		3,023,242
Hospitality Properties Trust		22,902		672,861
Host Hotels & Resorts Inc.		122,062		2,264,250
Plum Creek Timber Co. Inc.		26,693		1,211,862
Public Storage		23,429		3,911,940
Rayonier Inc.		20,695		973,079
Senior Housing Properties Trust		30,817		759,331
Ventas Inc.		48,223		3,146,069
Weyerhaeuser Co.		95,435		2,901,224
				27,888,640
TOTAL COMMON STOCKS
(Cost: $74,207,670)				78,453,469
SHORT-TERM INVESTMENTS — 7.76%
MONEY MARKET FUNDS — 7.76%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,c,d		5,562,907		5,562,907
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,c,d		323,299		323,299
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,c		209,401		209,401
				6,095,607
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,095,607)				6,095,607

28 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® REAL ESTATE 50 ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 107.59%
(Cost: $80,303,277)	$	84,549,076
Other Assets, Less Liabilities — (7.59)%		(5,961,439	)
NET ASSETS — 100.00%	$	78,587,637

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Affiliated issuer. See Note 2.

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

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Unaudited)

iSHARES^® RESIDENTIAL REAL ESTATE CAPPED ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.76%
RESIDENTIAL REITs — 44.99%
American Campus Communities Inc.		206,126	$	7,123,715
Apartment Investment and Management Co. Class Aa		286,722		8,022,482
Associated Estates Realty Corp.		99,225		1,522,112
AvalonBay Communities Inc.		96,820		12,107,341
BRE Properties Inc. Class A		151,094		8,251,243
Camden Property Trust		167,131		10,729,810
Campus Crest Communities Inc.		127,247		1,273,742
Education Realty Trust Inc.		226,180		2,067,285
Equity Lifestyle Properties, Inc.		148,113		5,626,813
Equity Residentiala		463,532		24,270,536
Essex Property Trust Inc.a		74,856		12,051,816
Home Properties Inc.a		111,982		6,753,634
Mid-America Apartment Communities Inc.		146,680		9,739,552
Post Properties Inc.		106,765		4,883,431
Sun Communities Inc.a		67,840		3,023,629
UDR Inc.a		492,905		12,228,973
UMH Properties Inc.		28,764		289,366
				129,965,480
SPECIALIZED REITs — 54.77%
Aviv REIT Inc.		20,553		522,046
CubeSmarta		266,188		4,863,255
Extra Space Storage Inc.		205,513		9,451,543
HCP Inc.		589,034		24,444,911
Health Care REIT Inc.		369,943		23,990,804
Healthcare Realty Trust Inc.a		188,844		4,534,144
LTC Properties Inc.		68,505		2,702,522
Medical Properties Trust Inc.		318,297		4,150,593
National Health Investors Inc.		48,144		3,009,963
Omega Healthcare Investors Inc.a		228,824		7,606,110
Public Storage		185,921		31,043,229
Sabra Healthcare REIT Inc.		73,488		1,976,827
Senior Housing Properties Trust		370,466		9,128,282
Sovran Self Storage Inc.		61,869		4,732,360
Universal Health Realty Income Trust		24,944		1,095,541
Ventas Inc.		382,685		24,966,369
				158,218,499
TOTAL COMMON STOCKS (Cost: $275,756,900)				288,183,979

Security	Shares		Value
SHORT-TERM INVESTMENTS — 13.53%
MONEY MARKET FUNDS — 13.53%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,c,d		36,792,553	$	36,792,553
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,c,d		2,138,272		2,138,272
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,c		154,570		154,570
				39,085,395
TOTAL SHORT-TERM INVESTMENTS
(Cost: $39,085,395)				39,085,395
TOTAL INVESTMENTS IN SECURITIES — 113.29% (Cost: $314,842,295)				327,269,374
Other Assets, Less Liabilities — (13.29)%				(38,397,408	)
NET ASSETS — 100.00%			$	288,871,966

^a  All or a portion of this security represents a security on loan. See Note 5.

^b Affiliated issuer. See Note 2.

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

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

30 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® RETAIL REAL ESTATE CAPPED ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.85%
DIVERSIFIED REITs — 5.70%
American Realty Capital Properties Inc.		21,975	$	291,608
Spirit Realty Capital Inc.		42,214		441,559
				733,167
RETAIL REITs — 94.15%
Acadia Realty Trust		6,536		174,315
Agree Realty Corp.		1,576		49,754
Alexander’s Inc.a		241		77,544
CBL & Associates Properties Inc.		20,184		399,845
Cedar Realty Trust Inc.		8,524		48,672
Cole Real Estate Investment Inc.		45,223		642,167
DDR Corp.a		36,268		614,743
Equity One Inc.		7,028		169,445
Excel Trust Inc.		5,420		65,474
Federal Realty Investment Trust		5,357		554,985
General Growth Properties Inc.		42,786		908,347
Getty Realty Corp.		2,988		57,310
Glimcher Realty Trust		17,210		176,402
Inland Real Estate Corp.		10,158		108,589
Kimco Realty Corp.		31,506		676,749
Kite Realty Group Trust		11,031		70,598
Macerich Co. (The)		10,911		646,040
National Retail Properties Inc.a		14,395		495,188
Pennsylvania Real Estate Investment Trust		7,762		140,725
Ramco-Gershenson Properties Trust		7,165		116,503
Realty Income Corp.		15,214		633,663
Regency Centers Corp.		10,881		562,112
Retail Opportunity Investments Corp.		8,527		126,200
Retail Properties of America Inc. Class A		22,307		319,213
Rouse Properties Inc.a		2,722		55,039
Saul Centers Inc.a		1,539		72,333
Simon Property Group Inc.		18,133		2,802,455
Tanger Factory Outlet Centers Inc.		11,158		388,856
Taubman Centers Inc.		7,564		497,636
Urstadt Biddle Properties Inc. Class A		2,772		54,719
Weingarten Realty Investorsa		12,912		409,698
				12,115,319
TOTAL COMMON STOCKS (Cost: $12,142,770)				12,848,486

Security	Shares		Value
SHORT-TERM INVESTMENTS — 11.01%
MONEY MARKET FUNDS — 11.01%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,c,d		1,316,713	$	1,316,713
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,c,d		76,523		76,523
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,c		23,666		23,666
				1,416,902
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,416,902)				1,416,902
TOTAL INVESTMENTS IN SECURITIES — 110.86% (Cost: $13,559,672)				14,265,388
Other Assets, Less Liabilities — (10.86)%				(1,397,093	)
NET ASSETS — 100.00%			$	12,868,295

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Affiliated issuer. See Note 2.

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

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2013

	iShares Asia Developed Real Estate ETF			iShares Europe Developed Real Estate ETF			iShares Industrial/Office Real Estate Capped ETF
ASSETS
Investments, at cost:
Unaffiliated	$	31,597,181		$	19,838,520		$	14,438,023
Affiliated (Note 2)		679,219			6,892			1,925,766
Total cost of investments	$	32,276,400		$	19,845,412		$	16,363,789
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	34,315,885		$	22,013,530		$	17,092,251
Affiliated (Note 2)		679,219			6,892			1,925,766
Total fair value of investments		34,995,104			22,020,422			19,018,017
Foreign currency, at valueb		29,317			19,951			—
Receivables:
Investment securities sold		—			59,083			—
Dividends and interest		95,221			36,265			14,742
Total Assets		35,119,642			22,135,721			19,032,759
LIABILITIES
Payables:
Investment securities purchased		—			59,635			—
Collateral for securities on loan (Note 5)		664,874			—			1,900,465
Investment advisory fees (Note 2)		14,065			8,850			6,776
Total Liabilities		678,939			68,485			1,907,241
NET ASSETS	$	34,440,703		$	22,067,236		$	17,125,518
Net assets consist of:
Paid-in capital	$	37,873,435		$	22,341,327		$	16,177,248
Distributions in excess of net investment income		(1,282,095	)		(67,373	)		(55,729	)
Accumulated net realized loss		(4,869,637	)		(2,381,822	)		(1,650,229	)
Net unrealized appreciation		2,719,000			2,175,104			2,654,228
NET ASSETS	$	34,440,703		$	22,067,236		$	17,125,518
Shares outstandingc		1,000,000			650,000			550,000
Net asset value per share	$	34.44		$	33.95		$	31.14

^a  Securities on loan with values of $627,414, $  — and $1,856,890, respectively. See Note 5.

^b  Cost of foreign currency: $29,175, $19,942 and $  —, respectively.

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

See notes to financial statements.

32 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares International Developed Real Estate ETF			iShares Mortgage Real Estate Capped ETF			iShares North America Real Estate ETF
ASSETS
Investments, at cost:
Unaffiliated	$	747,606,139		$	1,169,654,409		$	28,267,114
Affiliated (Note 2)		10,599,859			84,169,728			2,832,341
Total cost of investments	$	758,205,998		$	1,253,824,137		$	31,099,455
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	793,854,243		$	1,007,671,624		$	29,497,458
Affiliated (Note 2)		10,599,859			86,195,268			2,832,341
Total fair value of investments		804,454,102			1,093,866,892			32,329,799
Foreign currency, at valueb		1,566,997			—			15,108
Receivables:
Dividends and interest		1,866,560			26,415			45,753
Capital shares sold		965,128			180,680			—
Total Assets		808,852,787			1,094,073,987			32,390,660
LIABILITIES
Payables:
Investment securities purchased		556,501			—			—
Collateral for securities on loan (Note 5)		10,321,270			62,593,021			2,808,889
Capital shares redeemed		—			516,313			—
Investment advisory fees (Note 2)		301,144			429,973			11,937
Total Liabilities		11,178,915			63,539,307			2,820,826
NET ASSETS	$	797,673,872		$	1,030,534,680		$	29,569,834
Net assets consist of:
Paid-in capital	$	671,530,231		$	1,273,147,483		$	29,551,220
Undistributed (distributions in excess of) net investment income		(58,597,294	)		3,152,485			(124,005	)
Undistributed net realized gain (accumulated net realized loss)		138,487,125			(85,808,043	)		(1,087,617	)
Net unrealized appreciation (depreciation)		46,253,810			(159,957,245	)		1,230,236
NET ASSETS	$	797,673,872		$	1,030,534,680		$	29,569,834
Shares outstandingc		23,500,000			85,600,000			600,000
Net asset value per share	$	33.94		$	12.04		$	49.28

^a  Securities on loan with values of $9,716,725, $60,714,716 and $2,741,676, respectively. See Note 5.

^b  Cost of foreign currency: $1,569,335, $  — and $15,229, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 33

Statements of Assets and Liabilities (Unaudited) (Continued)

iSHARES^® TRUST

October 31, 2013

	iShares Real Estate 50 ETF			iShares Residential Real Estate Capped ETF			iShares Retail Real Estate Capped ETF
ASSETS
Investments, at cost:
Unaffiliated	$	74,207,670		$	275,756,900		$	12,142,770
Affiliated (Note 2)		6,095,607			39,085,395			1,416,902
Total cost of investments	$	80,303,277		$	314,842,295		$	13,559,672
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	78,453,469		$	288,183,979		$	12,848,486
Affiliated (Note 2)		6,095,607			39,085,395			1,416,902
Total fair value of investments		84,549,076			327,269,374			14,265,388
Receivables:
Dividends and interest		97,992			651,847			14,489
Total Assets		84,647,068			327,921,221			14,279,877
LIABILITIES
Payables:
Investment securities purchased		141,270			—			13,216
Collateral for securities on loan (Note 5)		5,886,206			38,930,825			1,393,236
Investment advisory fees (Note 2)		31,955			118,430			5,130
Total Liabilities		6,059,431			39,049,255			1,411,582
NET ASSETS	$	78,587,637		$	288,871,966		$	12,868,295
Net assets consist of:
Paid-in capital	$	76,809,518		$	276,393,718		$	13,217,982
Distributions in excess of net investment income		(275,629	)		(920,650	)		(51,066	)
Undistributed net realized gain (accumulated net realized loss)		(2,192,051	)		971,819			(1,004,337	)
Net unrealized appreciation		4,245,799			12,427,079			705,716
NET ASSETS	$	78,587,637		$	288,871,966		$	12,868,295
Shares outstandingb		1,950,000			5,800,000			350,000
Net asset value per share	$	40.30		$	49.81		$	36.77

^a  Securities on loan with values of $5,750,089, $37,957,950 and $1,357,455, respectively. See Note 5.

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

See notes to financial statements.

34 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Asia Developed Real Estate ETF			iShares Europe Developed Real Estate ETF			iShares Industrial/Office Real Estate Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	532,532		$	275,163		$	163,898
Interest — affiliated (Note 2)		1			—			—
Securities lending income — affiliated (Note 2)		1,912			55			1,261
Total investment income		534,445			275,218			165,159
EXPENSES
Investment advisory fees (Note 2)		89,151			42,194			33,026
Total expenses		89,151			42,194			33,026
Net investment income		445,294			233,024			132,133
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(418,708	)		(189,525	)		(106,940	)
In-kind redemptions — unaffiliated		924,838			—			—
Foreign currency transactions		(10,888	)		1,224			—
Net realized gain (loss)		495,242			(188,301	)		(106,940	)
Net change in unrealized appreciation/depreciation on:
Investments		(5,379,742	)		1,727,253			(558,740	)
Translation of assets and liabilities in foreign currencies		3,478			(1,965	)		—
Net change in unrealized appreciation/depreciation		(5,376,264	)		1,725,288			(558,740	)
Net realized and unrealized gain (loss)		(4,881,022	)		1,536,987			(665,680	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(4,435,728	)	$	1,770,011		$	(533,547	)

^a  Net of foreign withholding tax of $29,472, $38,310 and $  —, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares International Developed Real Estate ETF			iShares Mortgage Real Estate Capped ETF			iShares North America Real Estate ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	16,804,564		$	82,065,523		$	444,295
Dividends — affiliated (Note 2)		—			1,100,349			—
Interest — affiliated (Note 2)		7			118			—
Securities lending income — affiliated (Note 2)		40,445			93,747			2,048
Total investment income		16,845,016			83,259,737			446,343
EXPENSES
Investment advisory fees (Note 2)		2,441,375			2,537,264			70,824
Total expenses		2,441,375			2,537,264			70,824
Net investment income		14,403,641			80,722,473			375,519
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(8,802,774	)		(54,340,813	)		(253,544	)
In-kind redemptions — unaffiliated		209,676,270			10,706,639			164,976
Foreign currency transactions		(149,401	)		—			(249	)
Net realized gain (loss)		200,724,095			(43,634,174	)		(88,817	)
Net change in unrealized appreciation/depreciation on:
Investments		(412,719,695	)		(259,816,955	)		(2,435,267	)
Translation of assets and liabilities in foreign currencies		(27,795	)		—			(305	)
Net change in unrealized appreciation/depreciation		(412,747,490	)		(259,816,955	)		(2,435,572	)
Net realized and unrealized loss		(212,023,395	)		(303,451,129	)		(2,524,389	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(197,619,754	)	$	(222,728,656	)	$	(2,148,870	)

^a  Net of foreign withholding tax of $1,610,120, $  — and $10,110, respectively.

See notes to financial statements.

36 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Unaudited) (Continued)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares Real Estate 50 ETF			iShares Residential Real Estate Capped ETF			iShares Retail Real Estate Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	1,478,169		$	5,341,565		$	204,454
Interest — affiliated (Note 2)		1			4			—
Securities lending income — affiliated (Note 2)		6,825			30,435			1,375
Total investment income		1,484,995			5,372,004			205,829
EXPENSES
Investment advisory fees (Note 2)		214,375			811,686			39,270
Total expenses		214,375			811,686			39,270
Net investment income		1,270,620			4,560,318			166,559
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(625,430	)		(1,994,670	)		(85,320	)
In-kind redemptions — unaffiliated		2,544,947			7,674,349			249,878
Net realized gain		1,919,517			5,679,679			164,558
Net change in unrealized appreciation/depreciation		(13,040,916	)		(41,053,935	)		(2,550,127	)
Net realized and unrealized loss		(11,121,399	)		(35,374,256	)		(2,385,569	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(9,850,779	)	$	(30,813,938	)	$	(2,219,010	)

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Asia Developed Real Estate ETF						iShares Europe Developed Real  Estate ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	445,294		$	825,694		$	233,024		$	507,318
Net realized gain (loss)		495,242			702,897			(188,301	)		(327,663	)
Net change in unrealized appreciation/depreciation		(5,376,264	)		9,193,154			1,725,288			2,768,326
Net increase (decrease) in net assets resulting from operations		(4,435,728	)		10,721,745			1,770,011			2,947,981
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(739,609	)		(1,968,469	)		(407,546	)		(638,535	)
Total distributions to shareholders		(739,609	)		(1,968,469	)		(407,546	)		(638,535	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			23,196,818			4,520,777			2,794,611
Cost of shares redeemed		(6,326,358	)		(12,066,850	)		—			(1,375,490	)
Net increase (decrease) in net assets from capital share transactions		(6,326,358	)		11,129,968			4,520,777			1,419,121
INCREASE (DECREASE) IN NET ASSETS		(11,501,695	)		19,883,244			5,883,242			3,728,567
NET ASSETS
Beginning of period		45,942,398			26,059,154			16,183,994			12,455,427
End of period	$	34,440,703		$	45,942,398		$	22,067,236		$	16,183,994
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(1,282,095	)	$	(987,780	)	$	(67,373	)	$	107,149
SHARES ISSUED AND REDEEMED
Shares sold		—			700,000			150,000			100,000
Shares redeemed		(200,000	)		(400,000	)		—			(50,000	)
Net increase (decrease) in shares outstanding		(200,000	)		300,000			150,000			50,000

See notes to financial statements.

38 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Industrial/Office Real Estate Capped ETF						iShares International Developed Real Estate ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	132,133		$	214,390		$	14,403,641		$	38,467,351
Net realized gain (loss)		(106,940	)		25,448			200,724,095			(10,070,442	)
Net change in unrealized appreciation/depreciation		(558,740	)		1,641,863			(412,747,490	)		419,080,106
Net increase (decrease) in net assets resulting from operations		(533,547	)		1,881,701			(197,619,754	)		447,477,015
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(187,862	)		(214,992	)		(19,492,145	)		(79,974,870	)
Return of capital		—			(95,959	)		—			—
Total distributions to shareholders		(187,862	)		(310,951	)		(19,492,145	)		(79,974,870	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,629,557			1,529,761			152,884,108			1,181,987,324
Cost of shares redeemed		—			—			(1,115,634,202	)		(18,807,798	)
Net increase (decrease) in net assets from capital share transactions		4,629,557			1,529,761			(962,750,094	)		1,163,179,526
INCREASE (DECREASE) IN NET ASSETS		3,908,148			3,100,511			(1,179,861,993	)		1,530,681,671
NET ASSETS
Beginning of period		13,217,370			10,116,859			1,977,535,865			446,854,194
End of period	$	17,125,518		$	13,217,370		$	797,673,872		$	1,977,535,865
Distributions in excess of net investment income included in net assets at end of period	$	(55,729	)	$	—		$	(58,597,294	)	$	(53,508,790	)
SHARES ISSUED AND REDEEMED
Shares sold		150,000			50,000			4,400,000			39,400,000
Shares redeemed		—			—			(35,000,000	)		(600,000	)
Net increase (decrease) in shares outstanding		150,000			50,000			(30,600,000	)		38,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 39

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Mortgage Real  Estate Capped ETF						iShares North America Real Estate ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	80,722,473		$	88,285,588		$	375,519		$	553,727
Net realized gain (loss)		(43,634,174	)		11,228,321			(88,817	)		1,797,760
Net change in unrealized appreciation/depreciation		(259,816,955	)		87,117,654			(2,435,572	)		1,282,423
Net increase (decrease) in net assets resulting from operations		(222,728,656	)		186,631,563			(2,148,870	)		3,633,910
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(77,569,988	)		(96,460,357	)		(484,821	)		(708,094	)
Total distributions to shareholders		(77,569,988	)		(96,460,357	)		(484,821	)		(708,094	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		209,354,239			948,668,520			10,209,389			4,744,334
Cost of shares redeemed		(148,592,880	)		(106,119,590	)		(2,352,619	)		(9,447,073	)
Net increase (decrease) in net assets from capital share transactions		60,761,359			842,548,930			7,856,770			(4,702,739	)
INCREASE (DECREASE) IN NET ASSETS		(239,537,285	)		932,720,136			5,223,079			(1,776,923	)
NET ASSETS
Beginning of period		1,270,071,965			337,351,829			24,346,755			26,123,678
End of period	$	1,030,534,680		$	1,270,071,965		$	29,569,834		$	24,346,755
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	3,152,485		$	—		$	(124,005	)	$	(14,703	)
SHARES ISSUED AND REDEEMED
Shares sold		16,400,000			64,050,000			200,000			100,000
Shares redeemed		(11,450,000	)		(7,500,000	)		(50,000	)		(200,000	)
Net increase (decrease) in shares outstanding		4,950,000			56,550,000			150,000			(100,000	)

See notes to financial statements.

40 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Real Estate 50 ETF						iShares Residential Real  Estate Capped ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,270,620		$	2,002,571		$	4,560,318		$	5,994,320
Net realized gain		1,919,517			1,836,581			5,679,679			2,553,441
Net change in unrealized appreciation/depreciation		(13,040,916	)		10,606,352			(41,053,935	)		39,438,120
Net increase (decrease) in net assets resulting from operations		(9,850,779	)		14,445,504			(30,813,938	)		47,985,881
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,546,249	)		(2,458,774	)		(5,480,968	)		(7,747,242	)
Total distributions to shareholders		(1,546,249	)		(2,458,774	)		(5,480,968	)		(7,747,242	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,315,073			48,160,660			34,650,674			158,667,465
Cost of shares redeemed		(15,928,169	)		(9,585,602	)		(64,910,632	)		(19,285,527	)
Net increase (decrease) in net assets from capital share transactions		(13,613,096	)		38,575,058			(30,259,958	)		139,381,938
INCREASE (DECREASE) IN NET ASSETS		(25,010,124	)		50,561,788			(66,554,864	)		179,620,577
NET ASSETS
Beginning of period		103,597,761			53,035,973			355,426,830			175,806,253
End of period	$	78,587,637		$	103,597,761		$	288,871,966		$	355,426,830
Distributions in excess of net investment income included in net assets at end of period	$	(275,629	)	$	—		$	(920,650	)	$	—
SHARES ISSUED AND REDEEMED
Shares sold		50,000			1,200,000			650,000			3,200,000
Shares redeemed		(400,000	)		(250,000	)		(1,350,000	)		(400,000	)
Net increase (decrease) in shares outstanding		(350,000	)		950,000			(700,000	)		2,800,000

See notes to financial statements.

FINANCIAL STATEMENTS 41

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Retail Real  Estate Capped ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	166,559		$	461,972
Net realized gain		164,558			2,371,117
Net change in unrealized appreciation/depreciation		(2,550,127	)		1,758,778
Net increase (decrease) in net assets resulting from operations		(2,219,010	)		4,591,867
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(217,625	)		(670,896	)
Total distributions to shareholders		(217,625	)		(670,896	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			20,732,812
Cost of shares redeemed		(5,297,319	)		(15,847,281	)
Net increase (decrease) in net assets from capital share transactions		(5,297,319	)		4,885,531
INCREASE (DECREASE) IN NET ASSETS		(7,733,954	)		8,806,502
NET ASSETS
Beginning of period		20,602,249			11,795,747
End of period	$	12,868,295		$	20,602,249
Distributions in excess of net investment income included in net assets at end of period	$	(51,066	)	$	—
SHARES ISSUED AND REDEEMED
Shares sold		—			600,000
Shares redeemed		(150,000	)		(450,000	)
Net increase (decrease) in shares outstanding		(150,000	)		150,000

See notes to financial statements.

42 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Asia Developed Real Estate ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	38.29		$	28.95		$	31.31		$	29.22		$	20.62		$	43.10
Income from investment operations:
Net investment incomea		0.41			0.88			0.91			0.78			0.85			0.94
Net realized and unrealized gain (loss)b		(3.59	)		10.55			(2.16	)		2.93			9.22			(22.28	)
Total from investment operations		(3.18	)		11.43			(1.25	)		3.71			10.07			(21.34	)
Less distributions from:
Net investment income		(0.67	)		(2.09	)		(1.11	)		(1.62	)		(1.47	)		(1.00	)
Return of capital		—			—			—			—			—			(0.14	)
Total distributions		(0.67	)		(2.09	)		(1.11	)		(1.62	)		(1.47	)		(1.14	)
Net asset value, end of period	$	34.44		$	38.29		$	28.95		$	31.31		$	29.22		$	20.62
Total return		(8.17	)%c		41.21	%		(3.79	)%		13.20	%		49.34	%		(50.04	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	34,441		$	45,942		$	26,059		$	28,178		$	23,375		$	10,312
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.40	%		2.73	%		3.30	%		2.61	%		3.03	%		3.81	%
Portfolio turnover ratee		5	%		15	%		11	%		8	%		15	%		8	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 43

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Europe Developed Real Estate ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	32.37		$	27.68		$	35.07		$	27.33		$	21.04		$	49.50
Income from investment operations:
Net investment incomea		0.43			1.09			1.25			1.83			0.75			1.48
Net realized and unrealized gain (loss)b		1.94			4.91			(7.37	)		7.78			6.38			(27.96	)
Total from investment operations		2.37			6.00			(6.12	)		9.61			7.13			(26.48	)
Less distributions from:
Net investment income		(0.79	)		(1.31	)		(1.27	)		(1.87	)		(0.84	)		(1.98	)
Total distributions		(0.79	)		(1.31	)		(1.27	)		(1.87	)		(0.84	)		(1.98	)
Net asset value, end of period	$	33.95		$	32.37		$	27.68		$	35.07		$	27.33		$	21.04
Total return		7.73	%c		22.66	%		(17.66	)%		37.23	%		34.17	%		(54.43	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	22,067		$	16,184		$	12,455		$	21,042		$	8,199		$	3,156
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.65	%		3.78	%		4.28	%		6.25	%		2.65	%		4.99	%
Portfolio turnover ratee		4	%		14	%		13	%		11	%		18	%		12	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

44 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Industrial/Office Real Estate Capped ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	33.04		$	28.91		$	29.98		$	26.19		$	16.79		$	40.55
Income from investment operations:
Net investment incomea		0.30			0.59			0.50			0.51			0.74			0.90
Net realized and unrealized gain (loss)b		(1.76	)		4.40			(0.70	)		4.15			9.46			(23.48	)
Total from investment operations		(1.46	)		4.99			(0.20	)		4.66			10.20			(22.58	)
Less distributions from:
Net investment income		(0.44	)		(0.59	)		(0.87	)		(0.87	)		(0.70	)		(0.80	)
Return of capital		—			(0.27	)		—			—			(0.10	)		(0.38	)
Total distributions		(0.44	)		(0.86	)		(0.87	)		(0.87	)		(0.80	)		(1.18	)
Net asset value, end of period	$	31.14		$	33.04		$	28.91		$	29.98		$	26.19		$	16.79
Total return		(4.34	)%c		17.71	%		(0.28	)%		18.39	%		62.09	%		(56.46	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	17,126		$	13,217		$	10,117		$	14,991		$	10,476		$	2,518
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		1.92	%		2.03	%		1.89	%		1.96	%		3.36	%		3.29	%
Portfolio turnover ratee		9	%		15	%		15	%		22	%		36	%		19	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 45

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares International Developed Real Estate ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	36.55		$	29.21		$	32.59		$	28.80		$	20.94		$	44.91
Income from investment operations:
Net investment incomea		0.48			0.95			1.09			1.08			0.88			1.04
Net realized and unrealized gain (loss)b		(2.31	)		8.27			(3.36	)		4.64			9.02			(23.80	)
Total from investment operations		(1.83	)		9.22			(2.27	)		5.72			9.90			(22.76	)
Less distributions from:
Net investment income		(0.78	)		(1.88	)		(1.11	)		(1.93	)		(2.04	)		(1.21	)
Total distributions		(0.78	)		(1.88	)		(1.11	)		(1.93	)		(2.04	)		(1.21	)
Net asset value, end of period	$	33.94		$	36.55		$	29.21		$	32.59		$	28.80		$	20.94
Total return		(4.82	)%c		32.89	%		(6.93	)%		20.89	%		48.08	%		(51.30	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	797,674		$	1,977,536		$	446,854		$	417,113		$	325,415		$	194,743
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.83	%		2.99	%		3.83	%		3.63	%		3.17	%		4.43	%
Portfolio turnover ratee		4	%		16	%		11	%		7	%		13	%		9	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

46 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Mortgage Real Estate Capped ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	15.75		$	14.00		$	15.39		$	15.34		$	12.71		$	24.71
Income from investment operations:
Net investment incomea		0.99			1.62			1.55			1.45			1.40			1.95
Net realized and unrealized gain (loss)b		(3.75	)		1.87			(1.33	)		0.07			2.56			(11.46	)
Total from investment operations		(2.76	)		3.49			0.22			1.52			3.96			(9.51	)
Less distributions from:
Net investment income		(0.95	)		(1.74	)		(1.60	)		(1.47	)		(1.33	)		(2.49	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.95	)		(1.74	)		(1.61	)		(1.47	)		(1.33	)		(2.49	)
Net asset value, end of period	$	12.04		$	15.75		$	14.00		$	15.39		$	15.34		$	12.71
Total return		(17.53	)%c		26.63	%		2.48	%		10.56	%		32.00	%		(40.70	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,030,535		$	1,270,072		$	337,352		$	159,326		$	58,294		$	30,513
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		15.27	%		10.96	%		11.44	%		9.58	%		9.62	%		12.70	%
Portfolio turnover ratee		17	%		44	%		79	%		63	%		50	%		93	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 47

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares North America Real Estate ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	54.10		$	47.50		$	45.06		$	37.76		$	22.78		$	49.05
Income from investment operations:
Net investment incomea		0.64			1.16			1.06			0.95			1.04			1.31
Net realized and unrealized gain (loss)b		(4.68	)		6.97			2.70			7.57			15.06			(25.44	)
Total from investment operations		(4.04	)		8.13			3.76			8.52			16.10			(24.13	)
Less distributions from:
Net investment income		(0.78	)		(1.53	)		(1.32	)		(1.22	)		(1.09	)		(1.47	)
Return of capital		—			—			—			—			(0.03	)		(0.67	)
Total distributions		(0.78	)		(1.53	)		(1.32	)		(1.22	)		(1.12	)		(2.14	)
Net asset value, end of period	$	49.28		$	54.10		$	47.50		$	45.06		$	37.76		$	22.78
Total return		(7.42	)%c		17.60	%		8.82	%		23.11	%		72.16	%		(49.99	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	29,570		$	24,347		$	26,124		$	13,519		$	7,553		$	2,278
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.55	%		2.41	%		2.47	%		2.42	%		3.45	%		4.00	%
Portfolio turnover ratee		12	%		11	%		9	%		12	%		14	%		16	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d Annualized for periods of less than one year.

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

See notes to financial statements.

48 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Real Estate 50 ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	45.04		$	39.29		$	37.65		$	31.62		$	20.06		$	41.25
Income from investment operations:
Net investment incomea		0.59			1.14			1.08			0.96			0.99			1.12
Net realized and unrealized gain (loss)b		(4.61	)		6.01			1.99			6.27			11.71			(20.44	)
Total from investment operations		(4.02	)		7.15			3.07			7.23			12.70			(19.32	)
Less distributions from:
Net investment income		(0.72	)		(1.40	)		(1.43	)		(1.20	)		(0.97	)		(1.25	)
Return of capital		—			—			—			—			(0.17	)		(0.62	)
Total distributions		(0.72	)		(1.40	)		(1.43	)		(1.20	)		(1.14	)		(1.87	)
Net asset value, end of period	$	40.30		$	45.04		$	39.29		$	37.65		$	31.62		$	20.06
Total return		(8.90	)%c		18.73	%		8.66	%		23.53	%		64.88	%		(47.80	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	78,588		$	103,598		$	53,036		$	56,474		$	42,686		$	14,041
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.85	%		2.81	%		3.01	%		2.90	%		3.85	%		4.23	%
Portfolio turnover ratee		5	%		13	%		19	%		18	%		13	%		18	%

^a Based on average shares outstanding throughout each period.

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

^c Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 49

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Residential Real Estate Capped ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	54.68		$	47.52		$	44.16		$	35.93		$	21.89		$	43.20
Income from investment operations:
Net investment incomea		0.69			1.20			1.06			1.01			1.03			0.76
Net realized and unrealized gain (loss)b		(4.72	)		7.49			3.71			8.44			14.22			(19.92	)
Total from investment operations		(4.03	)		8.69			4.77			9.45			15.25			(19.16	)
Less distributions from:
Net investment income		(0.84	)		(1.53	)		(1.41	)		(1.22	)		(0.99	)		(0.77	)
Return of capital		—			—			—			—			(0.22	)		(1.38	)
Total distributions		(0.84	)		(1.53	)		(1.41	)		(1.22	)		(1.21	)		(2.15	)
Net asset value, end of period	$	49.81		$	54.68		$	47.52		$	44.16		$	35.93		$	21.89
Total return		(7.35	)%c		18.77	%		11.19	%		26.89	%		71.40	%		(45.55	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	288,872		$	355,427		$	175,806		$	103,776		$	44,913		$	14,227
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.70	%		2.44	%		2.44	%		2.60	%		3.60	%		2.64	%
Portfolio turnover ratee		6	%		14	%		28	%		16	%		14	%		79	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

50 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Retail Real Estate Capped ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	41.20		$	33.70		$	30.40		$	25.45		$	16.27		$	38.90
Income from investment operations:
Net investment incomea		0.38			0.80			0.78			0.64			0.70			1.21
Net realized and unrealized gain (loss)b		(4.29	)		7.82			3.54			5.24			9.38			(22.36	)
Total from investment operations		(3.91	)		8.62			4.32			5.88			10.08			(21.15	)
Less distributions from:
Net investment income		(0.52	)		(1.12	)		(1.02	)		(0.93	)		(0.71	)		(1.21	)
Return of capital		—			—			—			—			(0.19	)		(0.27	)
Total distributions		(0.52	)		(1.12	)		(1.02	)		(0.93	)		(0.90	)		(1.48	)
Net asset value, end of period	$	36.77		$	41.20		$	33.70		$	30.40		$	25.45		$	16.27
Total return		(9.44	)%c		26.20	%		14.83	%		23.73	%		63.76	%		(55.01	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	12,868		$	20,602		$	11,796		$	10,641		$	11,451		$	1,627
Ratio of expenses to average net assetsd		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assetsd		2.04	%		2.27	%		2.64	%		2.42	%		3.37	%		4.61	%
Portfolio turnover ratee		15	%		16	%		24	%		28	%		39	%		22	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 51

Notes to Financial Statements (Unaudited)

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

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

iShares ETF	Former Name a	Diversification Classification
Asia Developed Real Estate	iShares FTSE EPRA/NAREIT Developed Asia Index Fund		Non-diversified
Europe Developed Real Estate	iShares FTSE EPRA/NAREIT Developed Europe Index Fund		Non-diversified
Industrial/Office Real Estate Capped	iShares FTSE NAREIT Industrial/Office Capped Index Fund		Non-diversified
International Developed Real Estate	iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund		Diversified
Mortgage Real Estate Capped	iShares FTSE NAREIT Mortgage Plus Capped Index Fund		Non-diversified
North America Real Estate	iShares FTSE EPRA/NAREIT North America Index Fund		Diversified
Real Estate 50	iShares FTSE NAREIT Real Estate 50 Index Fund		Non-diversified
Residential Real Estate Capped	iShares FTSE NAREIT Residential Plus Capped Index Fund		Non-diversified
Retail Real Estate Capped	iShares FTSE NAREIT Retail Capped Index Fund		Non-diversified

^a  The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

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

1. SIGNIFICANT ACCOUNTING POLICIES

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

52 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

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

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

• Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

transparency of the instrument and is not necessarily an indication of the risk associated with investing in the instrument. The three levels of the fair value hierarchy are as follows:

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

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

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

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

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of October 31, 2013. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

iShares ETF and Investment Type	Investments
	Level 1		Level 2			Level 3		Total
Asia Developed Real Estate
Assets:
Common Stocks	$	34,315,878	$	—		$	7	$	34,315,885
Rights		—		0	a		—		0	a
Money Market Funds		679,219		—			—		679,219
	$	34,995,097	$	0	a	$	7	$	34,995,104
Europe Developed Real Estate
Assets:
Common Stocks	$	21,650,986	$	—		$	—	$	21,650,986
Investment Companies		362,544		—			—		362,544
Money Market Funds		6,892		—			—		6,892
	$	22,020,422	$	—		$	—	$	22,020,422
Industrial/Office Real Estate Capped
Assets:
Common Stocks	$	17,092,251	$	—		$	—	$	17,092,251
Money Market Funds		1,925,766		—			—		1,925,766
	$	19,018,017	$	—		$	—	$	19,018,017

54 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

iShares ETF and Investment Type	Investments
	Level 1		Level 2			Level 3		Total
International Developed Real Estate
Assets:
Common Stocks	$	790,367,811	$	—		$	90	$	790,367,901
Investment Companies		3,486,342		—			—		3,486,342
Rights		—		0	a		—		0	a
Money Market Funds		10,599,859		—			—		10,599,859
	$	804,454,012	$	0	a	$	90	$	804,454,102
Mortgage Real Estate Capped
Assets:
Common Stocks	$	1,029,939,203	$	—		$	—	$	1,029,939,203
Money Market Funds		63,927,689		—			—		63,927,689
	$	1,093,866,892	$	—		$	—	$	1,093,866,892
North America Real Estate
Assets:
Common Stocks	$	29,497,458	$	—		$	—	$	29,497,458
Money Market Funds		2,832,341		—			—		2,832,341
	$	32,329,799	$	—		$	—	$	32,329,799
Real Estate 50
Assets:
Common Stocks	$	78,453,469	$	—		$	—	$	78,453,469
Money Market Funds		6,095,607		—			—		6,095,607
	$	84,549,076	$	—		$	—	$	84,549,076
Residential Real Estate Capped
Assets:
Common Stocks	$	288,183,979	$	—		$	—	$	288,183,979
Money Market Funds		39,085,395		—			—		39,085,395
	$	327,269,374	$	—		$	—	$	327,269,374
Retail Real Estate Capped
Assets:
Common Stocks	$	12,848,486	$	—		$	—	$	12,848,486
Money Market Funds		1,416,902		—			—		1,416,902
	$	14,265,388	$	—		$	—	$	14,265,388

^a  Rounds to less than $1.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2013 are reflected

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

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

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

FOREIGN TAXES

Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of October 31, 2013, if any, are disclosed in the Funds' statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

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

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except interest, taxes, brokerage

56 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.48% based on the average daily net assets of each Fund.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended October 31, 2013, each Fund retained 65% of securities lending income and paid a fee to BTC equal to 35% of such income in the amounts as follows:

iShares ETF	Securities Lending Agent Fees
Asia Developed Real Estate	$	1,029
Europe Developed Real Estate		30
Industrial/Office Real Estate Capped		679
International Developed Real Estate		21,779
Mortgage Real Estate Capped		50,479

iShares ETF	Securities Lending Agent Fees
North America Real Estate	$	1,102
Real Estate 50		3,674
Residential Real Estate Capped		16,388
Retail Real Estate Capped		740

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

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the statements of operations.

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

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the six months ended October 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold		Shares Held at End of Period		Value at End of Period		Dividend Income
Mortgage Real Estate Capped
PennyMac Mortgage Investment Trust		965,218		—		—		965,218	$	22,267,579	$	1,100,349

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

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2013 were as follows:

iShares ETF	Purchases		Sales
Asia Developed Real Estate	$	2,006,318	$	2,380,275
Europe Developed Real Estate		764,064		843,336
Industrial/Office Real Estate Capped		1,616,505		1,198,345
International Developed Real Estate		45,596,425		56,984,622
Mortgage Real Estate Capped		209,682,600		179,422,248
North America Real Estate		4,719,927		3,313,033
Real Estate 50		4,766,332		5,272,314
Residential Real Estate Capped		18,864,335		18,172,311
Retail Real Estate Capped		2,456,725		3,232,713

In-kind transactions (see Note 4) for the six months ended October 31, 2013 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Asia Developed Real Estate	$	—	$	6,136,261
Europe Developed Real Estate		4,499,738		—
Industrial/Office Real Estate Capped		4,216,313		—
International Developed Real Estate		150,240,075		1,098,557,254
Mortgage Real Estate Capped		200,506,666		143,170,247
North America Real Estate		8,703,450		2,257,598
Real Estate 50		1,972,432		15,046,891
Residential Real Estate Capped		33,704,578		64,276,477
Retail Real Estate Capped		—		4,486,272

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

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

58 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities 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 Funds and any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates.

As of October 31, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of October 31, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, a Fund can resell or re-pledge the collateral and the borrower can resell or re-pledge the loaned securities.

As of October 31, 2013, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:

iShares ETF	Market Value of Securities on Loan
Asia Developed Real Estate	$	627,414
Industrial/Office Real Estate Capped		1,856,890
International Developed Real Estate		9,716,725
Mortgage Real Estate Capped		60,714,716

iShares ETF	Market Value of Securities on Loan
North America Real Estate	$	2,741,676
Real Estate 50		5,750,089
Residential Real Estate Capped		37,957,950
Retail Real Estate Capped		1,357,455

The value of the related collateral disclosed in the Funds’ schedules of investments exceeded the market value of the securities on loan at period end.

NOTES TO FINANCIAL STATEMENTS 59

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

6. INCOME TAX INFORMATION

For purposes of U.S. GAAP, 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 values per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

As of April 30, 2013, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2016		Expiring 2017		Expiring 2018		Expiring 2019		Total
Asia Developed Real Estate	$	1,414,693	$	—	$	157,999	$	1,651,814	$	824,377	$	4,048,883
Europe Developed Real Estate		450,496		—		102,293		616,993		495,537		1,665,319
Industrial/Office Real Estate Capped		5,001		5,621		10,926		1,226,322		—		1,247,870
International Developed Real Estate		9,516,625		—		743,329		9,938,969		6,772,206		26,971,129
Mortgage Real Estate Capped		—		—		4,187,735		15,084,868		204,938		19,477,541
North America Real Estate		286,121		—		25,690		385,640		190,195		887,646
Real Estate 50		—		—		—		2,829,746		—		2,829,746
Residential Real Estate Capped		—		—		—		1,917,472		206,372		2,123,844
Retail Real Estate Capped		—		—		—		1,094,459		29,985		1,124,444

^a  Must be utilized prior to losses subject to expiration.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of October 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Asia Developed Real Estate	$	36,207,511	$	3,768,766	$	(4,981,173	)	$	(1,212,407	)
Europe Developed Real Estate		20,350,356		2,786,712		(1,116,646	)		1,670,066
Industrial/Office Real Estate Capped		16,659,208		2,928,885		(570,076	)		2,358,809
International Developed Real Estate		924,117,282		69,077,085		(188,740,265	)		(119,663,180	)
Mortgage Real Estate Capped		1,276,520,465		42,790,884		(225,444,457	)		(182,653,573	)
North America Real Estate		31,225,312		2,062,728		(958,241	)		1,104,487
Real Estate 50		81,585,099		7,205,156		(4,241,179	)		2,963,977
Residential Real Estate Capped		317,016,517		21,013,791		(10,760,934	)		10,252,857
Retail Real Estate Capped		13,604,123		872,716		(211,451	)		661,265

60 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

Management has reviewed the tax positions as of October 31, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds’ financial statements.

7. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 61

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

The Board also noted that the investment advisory fee rates and overall expenses for the Funds compared favorably to the investment advisory fee rates and overall expenses of the funds in their respective Lipper Group. The Board further noted that the each of the iShares FTSE EPRA/NAREIT North America Index Fund, the iShares FTSE NAREIT Industrial/Office Capped Index Fund, the iShares FTSE NAREIT Mortgage Plus Capped Index Fund, the iShares FTSE NAREIT Real Estate 50 Index Fund, the iShares FTSE NAREIT Residential Plus Capped Index Fund and the iShares FTSE NAREIT Retail Capped Index Fund ranked in the fourth Lipper Quintile for expenses when compared to a subset of the Lipper Group identified as pure index funds. The Board noted that Lipper compares sub-sector funds to broad based real estate funds, which generally have lower advisory fees and overall expenses than more specialized sub-sector real estate funds.

62 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 63

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds, except for iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for

64 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 65

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

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

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Europe Developed Real Estate	$	0.790487	$	—	$	0.003598	$	0.794085		100	%		—	%		0	%a		100	%
Industrial/Office Real Estate Capped		0.425175		—		0.016964		0.442139		96			—			4			100
North America Real Estate		0.696928		—		0.078197		0.775125		90			—			10			100
Real Estate 50		0.703871		—		0.012735		0.716606		98			—			2			100
Residential Real Estate Capped		0.826193		—		0.011189		0.837382		99			—			1			100
Retail Real Estate Capped		0.519213		—		—		0.519213		100			—			—			100

^a  Rounds to less than 1%.

66 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), or National Association of Real Estate Investment Trusts (“NAREIT”), 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.

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

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

©2013 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.

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iS-SAR-45-1013

OCTOBER 31, 2013

2013 SEMI-ANNUAL REPORT (UNAUDITED)

iShares Trust

^Ø   iShares High Dividend ETF  |  HDV  |  NYSE Arca

^Ø   iShares International Select Dividend ETF  |  IDV  |  NYSE Arca

^Ø   iShares Select Dividend ETF  |  DVY  |  NYSE Arca

Table of Contents

Fund Performance Overviews	5
About Fund Performance	8
Shareholder Expenses	8
Schedules of Investments	9
iShares High Dividend ETF	9
iShares International Select Dividend ETF	11
iShares Select Dividend ETF	14
Financial Statements	17
Financial Highlights	21
Notes to Financial Statements	24
Board Review and Approval of Investment Advisory Contract	33
Supplemental Information	40

Fund Performance Overview

iSHARES^® HIGH DIVIDEND ETF

Performance as of October 31, 2013

The iShares High Dividend ETF (the “Fund”), formerly the iShares High Dividend Equity Fund, seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Morningstar^® Dividend Yield Focus Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 3.33%, net of fees, while the total return for the Index was 3.53%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.38%		19.35%		19.88%		19.38%		19.35%		19.88%
Since Inception		16.79%		16.80%		17.36%		49.59%		49.63%		51.34%

The inception date of the Fund was 3/29/11. The first day of secondary market trading was 3/31/11.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,033.30	$	2.05	$	1,000.00	$	1,023.20	$	2.04		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 (365 days). See “Shareholder Expenses” on page 8 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Consumer Staples	23.44	%
Health Care	21.80
Telecommunication Services	14.88
Utilities	12.64
Energy	10.82
Information Technology	7.07
Consumer Discretionary	3.51
Industrials	2.47
Materials	2.09
Financials	1.28
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

AT&T Inc.	9.19	%
Johnson & Johnson	6.95
Chevron Corp.	6.77
Pfizer Inc.	6.26
Procter & Gamble Co. (The)	6.13
Verizon Communications Inc.	5.66
Philip Morris International Inc.	5.18
Merck & Co. Inc.	4.41
Intel Corp.	4.35
Coca-Cola Co. (The)	3.98
TOTAL	58.88	%

FUND PERFORMANCE OVERVIEWS 5

Fund Performance Overview

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

Performance as of October 31, 2013

The iShares International Select Dividend ETF (the “Fund”), formerly the iShares Dow Jones International Select Dividend Index Fund, seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets, as represented by the Dow Jones EPAC Select Dividend Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 9.37%, net of fees, while the total return for the Index was 9.54%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.97%		23.48%		24.37%		23.97%		23.48%		24.37%
5 Years		18.89%		18.25%		18.90%		137.58%		131.24%		137.68%
Since Inception		1.31%		1.31%		1.43%		8.69%		8.66%		9.50%

The inception date of the Fund was 6/11/07. The first day of secondary market trading was 6/15/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,093.70	$	2.64	$	1,000.00	$	1,022.70	$	2.55		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 (365 days). See “Shareholder Expenses” on page 8 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Financials	19.48	%
Industrials	13.47
Energy	13.44
Utilities	13.09
Telecommunication Services	11.45
Consumer Discretionary	8.94
Information Technology	7.85
Consumer Staples	7.19
Materials	3.83
Health Care	1.26
TOTAL	100.00	%

* Excludes money market funds.

TEN LARGEST COUNTRY ALLOCATIONS

As of 10/31/13

Country Percentage of
Total  Investments*

Australia	18.89	%
United Kingdom	16.02
France	13.51
Sweden	5.72
Italy	5.11
Greece	5.07
Finland	4.25
Spain	4.23
Canada	4.08
Germany	3.74
TOTAL	80.62	%

6 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Performance Overview

iSHARES^® SELECT DIVIDEND ETF

Performance as of October 31, 2013

The iShares Select Dividend ETF (the “Fund”), formerly the iShares Dow Jones Select Dividend Index Fund, seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Dow Jones U.S. Select Dividend Index^SM (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. For the six-month reporting period ended October 31, 2013, the total return for the Fund was 8.40%, net of fees, while the total return for the Index was 8.57%.

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.89%		24.95%		25.26%		24.89%		24.95%		25.26%
5 Years		12.49%		12.46%		13.06%		80.10%		79.88%		84.74%
Since Inception		7.12%		7.12%		7.77%		98.85%		98.87%		111.11%

The inception date of the Fund was 11/3/03. The first day of secondary market trading was 11/7/03.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Beginning Account Value (5/1/13)		Ending Account Value (10/31/13)		Expenses Paid During  Period a		Annualized Expense Ratio
$	1,000.00	$	1,084.00	$	2.05	$	1,000.00	$	1,023.20	$	1.99		0.39%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information.

PORTFOLIO ALLOCATION

As of 10/31/13

Sector Percentage of
Total  Investments*

Utilities	28.94	%
Industrials	17.77
Consumer Staples	13.63
Financials	11.70
Consumer Discretionary	9.12
Materials	7.74
Health Care	3.88
Energy	3.68
Telecommunication Services	2.21
Information Technology	1.33
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 10/31/13

Security Percentage of
Total  Investments*

Lorillard Inc.	3.97	%
Lockheed Martin Corp.	3.41
Chevron Corp.	2.00
Philip Morris International Inc.	1.90
Kimberly-Clark Corp.	1.87
Northrop Grumman Corp.	1.76
PPG Industries Inc.	1.72
Entergy Corp.	1.69
McDonald's Corp.	1.67
ConocoPhillips	1.67
TOTAL	21.66	%

* Excludes money market funds.

FUND PERFORMANCE OVERVIEWS 7

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on May 1, 2013 and held through October 31, 2013, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

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

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

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

8 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® HIGH DIVIDEND ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.82%
AEROSPACE & DEFENSE — 1.85%
Lockheed Martin Corp.		286,075	$	38,145,241
Raytheon Co.		273,036		22,489,975
				60,635,216
BEVERAGES — 4.28%
Coca-Cola Co. (The)		3,295,207		130,391,341
Dr Pepper Snapple Group Inc.		205,948		9,751,638
				140,142,979
CAPITAL MARKETS — 0.57%
Federated Investors Inc. Class Ba		99,659		2,702,752
Greenhill & Co. Inc.		28,269		1,450,200
Invesco Ltd.		380,824		12,852,810
Janus Capital Group Inc.a		183,864		1,814,738
				18,820,500
CHEMICALS — 1.57%
E.I. du Pont de Nemours and Co.		842,193		51,542,212
				51,542,212
COMMERCIAL BANKS — 0.12%
Bank of Hawaii Corp.		45,957		2,664,587
Westamerica Bancorp		25,167		1,295,597
				3,960,184
COMMERCIAL SERVICES & SUPPLIES — 0.62%
Waste Management Inc.		465,419		20,264,343
				20,264,343
DIVERSIFIED TELECOMMUNICATION SERVICES — 14.86%
AT&T Inc.		8,315,258		301,012,339
Verizon Communications Inc.		3,674,425		185,595,207
				486,607,546
ELECTRIC UTILITIES — 7.52%
ALLETE Inc.		43,662		2,206,241
American Electric Power Co. Inc.		672,918		31,519,479
Cleco Corp.		58,804		2,724,977
Duke Energy Corp.		1,001,446		71,833,722
Great Plains Energy Inc.		183,899		4,310,593
MGE Energy Inc.		21,716		1,222,828
NextEra Energy Inc.		418,579		35,474,570
Northeast Utilities		340,609		14,608,720
Pinnacle West Capital Corp.		133,077		7,456,304
Southern Co. (The)		1,279,135		52,329,413
Westar Energy Inc.		170,167		5,378,979
Xcel Energy Inc.		596,150		17,204,889
				246,270,715

Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.12%
Molex Inc.		102,444	$	3,954,338
				3,954,338
FOOD & STAPLES RETAILING — 0.60%
Sysco Corp.		604,403		19,546,393
				19,546,393
FOOD PRODUCTS — 1.36%
General Mills Inc.		593,718		29,935,262
Kellogg Co.		229,349		14,506,324
				44,441,586
GAS UTILITIES — 0.12%
Questar Corp.		169,778		4,016,948
				4,016,948
HOTELS, RESTAURANTS & LEISURE — 2.83%
Cracker Barrel Old Country Store Inc.		20,603		2,263,652
McDonald's Corp.		938,596		90,593,286
				92,856,938
HOUSEHOLD PRODUCTS — 7.78%
Clorox Co. (The)		131,607		11,869,635
Kimberly-Clark Corp.		388,666		41,975,928
Procter & Gamble Co. (The)		2,487,208		200,842,046
				254,687,609
INSURANCE — 0.53%
American National Insurance Co.		6,617		668,780
Arthur J. Gallagher & Co.		119,294		5,660,500
Old Republic International Corp.		362,930		6,093,595
PartnerRe Ltd.a		50,401		5,050,684
				17,473,559
IT SERVICES — 0.43%
Paychex Inc.		332,465		14,049,971
				14,049,971
LEISURE EQUIPMENT & PRODUCTS — 0.66%
Hasbro Inc.a		117,578		6,072,904
Mattel Inc.		353,501		15,684,839
				21,757,743
METALS & MINING — 0.52%
Compass Minerals International Inc.		28,863		2,149,428
Nucor Corp.		285,246		14,767,185
				16,916,613

SCHEDULES OF INVESTMENTS 9

Schedule of Investments (Unaudited) (Continued)

iSHARES^® HIGH DIVIDEND ETF

October 31, 2013

Security	Shares		Value
MULTI-UTILITIES — 4.97%
Alliant Energy Corp.		127,221	$	6,643,481
CMS Energy Corp.		310,393		8,523,392
Consolidated Edison Inc.		391,114		22,770,657
Dominion Resources Inc.		643,262		41,007,952
DTE Energy Co.		204,878		14,165,265
Public Service Enterprise Group Inc.		678,831		22,740,839
SCANA Corp.		183,190		8,542,150
Sempra Energy		199,920		18,220,709
TECO Energy Inc.		327,420		5,621,801
Vectren Corp.		106,299		3,711,961
Wisconsin Energy Corp.		261,221		11,000,016
				162,948,223
OIL, GAS & CONSUMABLE FUELS — 10.80%
Chevron Corp.		1,847,812		221,663,527
ConocoPhillips		1,448,994		106,211,260
Spectra Energy Corp.		732,501		26,055,061
				353,929,848
PHARMACEUTICALS — 21.76%
Bristol-Myers Squibb Co.		1,555,305		81,684,619
Eli Lilly and Co.		1,083,676		53,988,738
Johnson & Johnson		2,458,977		227,725,860
Merck & Co. Inc.		3,204,659		144,498,074
Pfizer Inc.		6,679,525		204,927,827
				712,825,118
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 6.20%
Analog Devices Inc.		258,237		12,731,084
Intel Corp.		5,831,866		142,472,486
Microchip Technology Inc.a		209,792		9,012,664
Texas Instruments Inc.		920,844		38,749,116
				202,965,350
SOFTWARE — 0.31%
CA Inc.		321,676		10,216,430
				10,216,430
THRIFTS & MORTGAGE FINANCE — 0.05%
Northwest Bancshares Inc.		107,284		1,500,903
				1,500,903
TOBACCO — 9.39%
Altria Group Inc.		3,022,633		112,532,627
Philip Morris International Inc.		1,902,625		169,561,940

Security	Shares		Value
Reynolds American Inc.		495,369	$	25,447,105
				307,541,672
TOTAL COMMON STOCKS
(Cost: $3,015,436,406)				3,269,872,937
SHORT-TERM INVESTMENTS — 0.20%
MONEY MARKET FUNDS — 0.20%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%b,c,d		2,266,439		2,266,439
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%b,c,d		131,719		131,719
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%b,c		4,223,243		4,223,243
				6,621,401
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,621,401)				6,621,401
TOTAL INVESTMENTS IN SECURITIES — 100.02%
(Cost: $3,022,057,807)				3,276,494,338
Other Assets, Less Liabilities — (0.02)%				(779,024	)
NET ASSETS — 100.00%			$	3,275,715,314

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Affiliated issuer. See Note 2.

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

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of October 31, 2013 were as follows:

Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Net Unrealized Appreciation (Depreciation)
	63	E-mini S&P 500 (Dec. 2013)	Chicago Mercantile	$	5,515,650	$	167,384

See notes to financial statements.

10 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited)

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.63%
AUSTRALIA — 18.82%
Amcor Ltd.		1,401,315	$	14,384,411
APA Group		1,801,470		10,337,766
Australia and New Zealand Banking Group Ltd.		1,739,670		55,747,355
Bradken Ltd.		2,427,195		14,342,217
Commonwealth Bank of Australia		1,614,525		116,316,764
David Jones Ltd.		2,065,665		5,320,541
Metcash Ltd.		2,594,055		8,229,075
Monadelphous Group Ltd.a		1,660,875		28,592,877
Myer Holdings Ltd.		2,573,970		6,093,552
National Australia Bank Ltd.		2,167,635		72,478,785
Orica Ltd.		1,353,420		27,003,755
SP AusNet		2,204,715		2,609,694
Stockland Corp. Ltd.		2,088,840		7,931,888
Suncorp Group Ltd.		1,178,835		14,936,064
Sydney Airport		1,798,380		7,135,469
Tatts Group Ltd.		2,283,510		6,789,841
Telstra Corp. Ltd.		1,954,425		9,586,847
UGL Ltd.		1,926,615		13,445,887
Wesfarmers Ltd.		1,364,235		55,511,323
Westfield Group		1,373,505		14,072,930
Westpac Banking Corp.		1,892,625		61,455,265
				552,322,306
AUSTRIA — 2.69%
Oesterreichische Post AG		857,475		40,351,970
OMV AG		614,910		29,380,153
Telekom Austria AG		1,127,850		9,302,599
				79,034,722
BELGIUM — 1.04%
Belgacom SA		1,117,035		30,622,733
				30,622,733
CANADA — 4.07%
Bank of Montreal		443,415		30,877,688
Crescent Point Energy Corp.		690,615		26,814,021
Emera Inc.		380,070		11,203,291
Manitoba Telecom Services Inc.		474,315		13,403,714
Russel Metals Inc.		471,225		13,013,645
TELUS Corp. NVS		687,270		24,001,892
				119,314,251
FINLAND — 4.24%
Fortum OYJ		1,302,435		29,038,812
Konecranes OYJ		723,060		24,417,707

Security	Shares		Value
Metso OYJ		1,044,420	$	41,176,755
Stora Enso OYJ Class R		1,053,690		9,812,561
UPM-Kymmene OYJ		1,245,270		19,824,369
				124,270,204
FRANCE — 13.46%
Bouygues SA		1,191,195		46,623,349
GDF Suez		1,561,995		38,945,557
Lagardere SCA		835,845		30,442,296
Neopost SA		1,625,340		123,209,993
Orange		2,570,880		35,335,554
Societe Television Francaise 1		973,350		18,790,413
Total SA		948,630		58,376,536
Veolia Environnement		1,231,365		21,126,381
Vivendi SA		872,925		22,186,119
				395,036,198
GERMANY — 3.73%
Deutsche Telekom AG Registered		1,113,945		17,567,125
ProSiebenSat.1 Media AG Registered		682,890		32,567,864
RWE AG		874,470		32,324,593
Wincor Nixdorf AG		404,790		26,860,712
				109,320,294
GREECE — 5.05%
Hellenic Petroleum SA		3,084,588		40,257,550
Motor Oil (Hellas) Corinth Refineries SA		2,380,365		28,412,995
OPAP SA		6,395,805		79,560,088
				148,230,633
HONG KONG — 2.04%
CLP Holdings Ltd.		1,545,000		12,434,848
Television Broadcasts Ltd.		1,644,200		9,617,437
VTech Holdings Ltd.		2,626,500		37,705,090
				59,757,375
ITALY — 5.09%
Enel SpA		4,801,860		21,216,405
Eni SpA		3,375,825		85,592,893
Snam SpA		3,949,020		20,379,545
Telecom Italia SpA		3,382,005		3,298,945
Terna SpA		3,817,695		18,944,059
				149,431,847
JAPAN — 1.26%
Eisai Co. Ltd.		345,400		13,554,072

SCHEDULES OF INVESTMENTS 11

Schedule of Investments (Unaudited) (Continued)

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

October 31, 2013

Security	Shares		Value
Ono Pharmaceutical Co. Ltd.		309,000	$	23,306,493
				36,860,565
NETHERLANDS — 2.51%
Corbion NV		1,782,930		41,460,670
Koninklijke KPN NVb		10,095,030		32,306,731
				73,767,401
NEW ZEALAND — 2.39%
Fletcher Building Ltd.		4,948,635		40,921,372
Telecom Corp. of New Zealand Ltd.		14,955,600		29,091,825
				70,013,197
NORWAY — 1.94%
Fred Olsen Energy ASA		397,065		16,736,446
Seadrill Ltd.		866,745		40,147,660
				56,884,106
PORTUGAL — 1.51%
Energias de Portugal SA		12,044,820		44,408,790
				44,408,790
SINGAPORE — 2.00%
Keppel Corp. Ltd.		3,431,000		30,012,779
Keppel Land Ltd.		4,635,000		13,863,708
StarHub Ltd.		4,165,000		14,942,758
				58,819,245
SPAIN — 4.21%
Gas Natural SDG SA		1,807,650		42,686,752
Indra Sistemas SAa		2,513,715		41,589,678
Mapfre SA		1,823,100		7,346,283
Telefonica SA		1,810,740		31,965,168
				123,587,881
SWEDEN — 5.70%
Hennes & Mauritz AB Class B		1,274,625		55,152,564
NCC AB Class B		2,169,180		66,908,512
Peab AB		1,928,160		11,367,445
Securitas AB Class B		1,611,435		18,427,642
TeliaSonera AB		1,857,090		15,411,059
				167,267,222
SWITZERLAND — 1.92%
Swisscom AG Registered		64,890		33,184,870
Zurich Insurance Group AGb		83,430		23,115,882
				56,300,752
UNITED KINGDOM — 15.96%
Aviva PLC		2,739,285		19,764,615
BAE Systems PLC		2,210,895		16,151,065

Security	Shares		Value
British American Tobacco PLC		1,580,535	$	87,249,985
Cable & Wireless Communications PLC		5,441,490		4,090,524
Carillion PLC		2,183,085		10,662,335
Catlin Group Ltd.		2,232,525		18,364,300
Close Brothers Group PLC		1,883,355		38,276,375
Dairy Crest Group PLC		2,062,575		17,794,760
FirstGroup PLC		5,993,055		11,120,859
Halfords Group PLC		2,499,810		17,008,598
HSBC Holdings PLC		1,565,085		17,151,182
National Grid PLC		2,153,730		27,145,153
Provident Financial PLC		2,040,945		51,807,958
Royal Dutch Shell PLC Class A		2,011,590		67,179,255
RSA Insurance Group PLC		2,923,140		6,030,075
SSE PLC		2,193,900		49,910,069
Vodafone Group PLC		2,368,485		8,542,698
				468,249,806
TOTAL COMMON STOCKS
(Cost: $2,503,337,526)				2,923,499,528
SHORT-TERM INVESTMENTS — 1.89%
MONEY MARKET FUNDS — 1.89%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%c,d,e		50,657,613		50,657,613
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%c,d,e		2,944,067		2,944,067
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%c,d		1,787,751		1,787,751
				55,389,431
TOTAL SHORT-TERM INVESTMENTS (Cost: $55,389,431)				55,389,431

12 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

October 31, 2013

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.52% (Cost: $2,558,726,957)	$	2,978,888,959
Other Assets, Less Liabilities — (1.52)%		(44,532,523	)
NET ASSETS — 100.00%	$	2,934,356,436

NVS  —  Non-Voting Shares

^a  All or a portion of this security represents a security on loan. See Note 5.

^b  Non-income earning security.

^c  Affiliated issuer. See Note 2.

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

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Unaudited)

iSHARES^® SELECT DIVIDEND ETF

October 31, 2013

Security	Shares		Value
COMMON STOCKS — 99.85%
AEROSPACE & DEFENSE — 7.62%
General Dynamics Corp.		1,995,149	$	172,839,758
Honeywell International Inc.		1,765,890		153,155,640
Lockheed Martin Corp.		3,403,113		453,771,087
Northrop Grumman Corp.		2,178,571		234,218,168
				1,013,984,653
BEVERAGES — 0.54%
Coca-Cola Co. (The)		1,811,535		71,682,440
				71,682,440
BIOTECHNOLOGY — 0.32%
PDL BioPharma Inc.		5,349,352		43,276,258
				43,276,258
CHEMICALS — 4.27%
International Flavors & Fragrances Inc.		1,383,386		114,336,853
Olin Corp.		2,501,150		56,300,886
PPG Industries Inc.		1,253,917		228,940,166
RPM International Inc.		2,121,883		82,159,310
Sensient Technologies Corp.		1,663,117		86,698,289
				568,435,504
COMMERCIAL BANKS — 4.25%
Bank of Hawaii Corp.a		2,889,043		167,506,713
BB&T Corp.		2,032,442		69,042,055
F.N.B. Corp.		3,436,191		42,986,749
First Niagara Financial Group Inc.		2,869,306		31,648,445
FirstMerit Corp.		3,214,615		72,200,253
Trustmark Corp.		2,970,522		80,679,378
United Bankshares Inc.		1,717,426		50,801,461
Valley National Bancorp		5,208,071		50,778,692
				565,643,746
COMMERCIAL SERVICES & SUPPLIES — 4.80%
Deluxe Corp.		2,256,349		106,251,474
Pitney Bowes Inc.		9,245,910		197,307,719
R.R. Donnelley & Sons Co.		7,603,098		141,189,530
Republic Services Inc.		2,139,898		71,622,386
Waste Management Inc.		2,809,568		122,328,591
				638,699,700
COMPUTERS & PERIPHERALS — 1.33%
Seagate Technology PLC		3,642,581		177,320,843
				177,320,843

Security	Shares		Value
CONTAINERS & PACKAGING — 2.15%
Avery Dennison Corp.		2,114,223	$	99,622,188
MeadWestvaco Corp.		2,195,009		76,496,064
Sonoco Products Co.		2,723,394		110,678,732
				286,796,984
DISTRIBUTORS — 1.24%
Genuine Parts Co.		2,096,826		165,292,794
				165,292,794
DIVERSIFIED FINANCIAL SERVICES — 1.82%
McGraw Hill Financial Inc.		1,290,554		89,925,802
NYSE Euronext Inc.		3,457,238		152,187,617
				242,113,419
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.21%
AT&T Inc.		3,490,584		126,359,141
CenturyLink Inc.		4,954,337		167,753,851
				294,112,992
ELECTRIC UTILITIES — 12.55%
American Electric Power Co. Inc.		2,909,856		136,297,655
Cleco Corp.		2,298,637		106,518,839
Edison International		1,939,951		95,115,798
Entergy Corp.		3,474,406		224,863,556
Exelon Corp.		4,702,284		134,203,185
FirstEnergy Corp.		3,590,751		135,981,740
NextEra Energy Inc.		2,282,715		193,460,096
Northeast Utilities		2,315,806		99,324,919
OGE Energy Corp.		3,975,299		146,688,533
Pinnacle West Capital Corp.		2,869,365		160,770,521
PPL Corp.		3,286,028		100,651,038
UNS Energy Corp.a		2,765,681		136,845,896
				1,670,721,776
ELECTRICAL EQUIPMENT — 3.27%
Eaton Corp. PLC		1,954,827		137,932,593
Emerson Electric Co.		2,110,837		141,362,754
Hubbell Inc. Class B		1,451,269		156,069,468
				435,364,815
FOOD & STAPLES RETAILING — 0.57%
Sysco Corp.		2,360,836		76,349,436
				76,349,436
FOOD PRODUCTS — 1.14%
General Mills Inc.		2,119,158		106,847,947
Mondelez International Inc. Class A		1,337,099		44,980,010
				151,827,957

14 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Unaudited) (Continued)

iSHARES^® SELECT DIVIDEND ETF

October 31, 2013

Security	Shares		Value
GAS UTILITIES — 2.92%
AGL Resources Inc.		3,117,101	$	149,184,454
New Jersey Resources Corp.a		2,703,960		124,463,279
ONEOK Inc.		2,031,242		114,765,173
				388,412,906
HOTELS, RESTAURANTS & LEISURE — 2.80%
Darden Restaurants Inc.		2,910,078		149,956,319
McDonald's Corp.		2,305,996		222,574,734
				372,531,053
HOUSEHOLD DURABLES — 2.64%
Garmin Ltd.		2,906,677		135,887,150
Leggett & Platt Inc.		2,924,117		86,963,240
Tupperware Brands Corp.		1,441,371		129,218,910
				352,069,300
HOUSEHOLD PRODUCTS — 3.40%
Clorox Co. (The)		2,257,493		203,603,294
Kimberly-Clark Corp.		2,302,365		248,655,420
				452,258,714
INDUSTRIAL CONGLOMERATES — 0.42%
General Electric Co.		2,123,932		55,519,582
				55,519,582
INSURANCE — 4.37%
Allstate Corp. (The)		1,464,959		77,730,724
Arthur J. Gallagher & Co.		2,586,502		122,729,520
Cincinnati Financial Corp.		2,761,575		138,078,750
Mercury General Corp.a		3,763,869		175,245,741
Old Republic International Corp.		4,035,896		67,762,694
				581,547,429
LEISURE EQUIPMENT & PRODUCTS — 0.75%
Mattel Inc.		2,260,811		100,312,184
				100,312,184
MEDIA — 1.67%
Cinemark Holdings Inc.		2,115,987		69,425,533
Meredith Corp.a		2,978,263		152,784,892
				222,210,425
METALS & MINING — 1.31%
Cliffs Natural Resources Inc.b		5,145,016		132,124,011
Commercial Metals Co.		2,292,447		42,089,327
				174,213,338
MULTI-UTILITIES — 13.43%
Alliant Energy Corp.		2,727,239		142,416,421
Avista Corp.a		3,272,291		90,936,967
Black Hills Corp.a		2,783,394		141,173,744

Security	Shares		Value
CenterPoint Energy Inc.		2,707,784	$	66,611,486
CMS Energy Corp.		2,606,984		71,587,781
Dominion Resources Inc.		2,737,328		174,504,660
DTE Energy Co.		2,717,850		187,912,149
Integrys Energy Group Inc.		3,415,834		200,441,139
NiSource Inc.		2,653,558		83,640,148
PG&E Corp.		2,981,963		124,795,151
Public Service Enterprise Group Inc.		3,135,386		105,035,431
SCANA Corp.		2,887,004		134,620,996
Sempra Energy		2,234,577		203,659,348
TECO Energy Inc.		3,517,910		60,402,515
				1,787,737,936
OIL, GAS & CONSUMABLE FUELS — 3.67%
Chevron Corp.		2,219,882		266,297,045
ConocoPhillips		3,034,280		222,412,724
				488,709,769
PHARMACEUTICALS — 3.55%
Bristol-Myers Squibb Co.		2,844,323		149,383,844
Eli Lilly and Co.		2,705,816		134,803,753
Merck & Co. Inc.		2,603,263		117,381,129
Pfizer Inc.		2,303,830		70,681,504
				472,250,230
THRIFTS & MORTGAGE FINANCE — 1.25%
Hudson City Bancorp Inc.		3,016,969		27,092,382
New York Community Bancorp Inc.		5,327,017		86,350,946
People's United Financial Inc.		3,675,115		53,031,909
				166,475,237
TOBACCO — 7.95%
Altria Group Inc.		3,551,892		132,236,939
Lorillard Inc.		10,353,866		528,150,705
Philip Morris International Inc.		2,848,826		253,887,373
Universal Corp.a		2,729,112		144,724,809
				1,058,999,826
TRADING COMPANIES & DISTRIBUTORS — 1.64%
Watsco Inc.a		2,290,246		218,237,541
				218,237,541
TOTAL COMMON STOCKS
(Cost: $10,364,710,446)				13,293,108,787

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Unaudited) (Continued)

iSHARES^® SELECT DIVIDEND ETF

October 31, 2013

Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.62%
MONEY MARKET FUNDS — 0.62%
BlackRock Cash Funds: Institutional, SL Agency Shares
0.14%a,c,d		53,841,558	$	53,841,558
BlackRock Cash Funds: Prime, SL Agency Shares
0.12%a,c,d		3,129,108		3,129,108
BlackRock Cash Funds: Treasury, SL Agency Shares
0.00%a,c		25,896,156		25,896,156
				82,866,822
TOTAL SHORT-TERM INVESTMENTS
(Cost: $82,866,822)				82,866,822
TOTAL INVESTMENTS IN SECURITIES — 100.47%
(Cost: $10,447,577,268)				13,375,975,609
Other Assets, Less Liabilities — (0.47)%				(62,388,336	)
NET ASSETS — 100.00%			$	13,313,587,273

^a  Affiliated issuer. See Note 2.

^b  All or a portion of this security represents a security on loan. See Note 5.

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

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 5.

Financial futures contracts purchased as of October 31, 2013 were as follows:

Number of Contracts		Issue (Expiration)	Exchange	Notional Value		Net Unrealized Appreciation (Depreciation)
	218	E-mini S&P 500 (Dec. 2013)	Chicago Mercantile	$	19,085,900	$	880,475

See notes to financial statements.

16 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Unaudited)

iSHARES^® TRUST

October 31, 2013

	iShares High Dividend ETF		iShares International Select Dividend ETF			iShares Select Dividend ETF
ASSETS
Investments, at cost:
Unaffiliated	$	3,015,436,406	$	2,503,337,526		$	9,287,763,684
Affiliated (Note 2)		6,621,401		55,389,431			1,159,813,584
Total cost of investments	$	3,022,057,807	$	2,558,726,957		$	10,447,577,268
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	3,269,872,937	$	2,923,499,528		$	11,941,189,205
Affiliated (Note 2)		6,621,401		55,389,431			1,434,786,404
Total fair value of investments		3,276,494,338		2,978,888,959			13,375,975,609
Foreign currency, at valueb		—		2,793,428			—
Cash pledged to broker		630,000		—			1,520,000
Receivables:
Due from custodian (Note 4)		—		4,248,820			—
Dividends and interest		9,978,534		5,577,227			17,509,068
Capital shares sold		97,736		2,981,472			—
Total Assets		3,287,200,608		2,994,489,906			13,395,004,677
LIABILITIES
Payables:
Investment securities purchased		8,018,057		5,365,959			19,960,975
Collateral for securities on loan (Note 5)		2,398,158		53,601,680			56,970,666
Capital shares redeemed		—		—			69,535
Futures variation margin		33,535		—			111,140
Investment advisory fees (Note 2)		1,035,544		1,165,831			4,305,088
Total Liabilities		11,485,294		60,133,470			81,417,404
NET ASSETS	$	3,275,715,314	$	2,934,356,436		$	13,313,587,273
Net assets consist of:
Paid-in capital	$	2,850,957,208	$	2,621,409,533		$	12,651,131,605
Undistributed (distributions in excess of) net investment income		9,590,537		(8,206,045	)		14,909,847
Undistributed net realized gain (accumulated net realized loss)		160,563,654		(99,058,463	)		(2,281,732,995	)
Net unrealized appreciation		254,603,915		420,211,411			2,929,278,816
NET ASSETS	$	3,275,715,314	$	2,934,356,436		$	13,313,587,273
Shares outstandingc		47,000,000		77,250,000			190,700,000
Net asset value per share	$	69.70	$	37.99		$	69.81

^a  Securities on loan with values of $2,344,070, $50,888,083 and $55,800,913, respectively. See Note 5.

^b  Cost of foreign currency: $  —, $2,822,032 and $  —, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 17

Statements of Operations (Unaudited)

iSHARES^® TRUST

Six months ended October 31, 2013

	iShares High Dividend ETF			iShares International Select Dividend ETF			iShares Select Dividend ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	63,109,680		$	67,607,646		$	205,933,581
Dividends — affiliated (Note 2)		—			—			22,624,528
Interest — unaffiliated		261			—			1,132
Interest — affiliated (Note 2)		118			35			101
Securities lending income — affiliated (Note 2)		21,747			154,144			1,287,439
Total investment income		63,131,806			67,761,825			229,846,781
EXPENSES
Investment advisory fees (Note 2)		6,498,036			5,761,968			25,001,395
Total expenses		6,498,036			5,761,968			25,001,395
Net investment income		56,633,770			61,999,857			204,845,386
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(36,194,205	)		(17,660,947	)		19,324,340
Investments — affiliated (Note 2)		—			—			(1,089,690	)
In-kind redemptions — unaffiliated		219,886,095			—			183,887,930
In-kind redemptions — affiliated (Note 2)		—			—			16,661,818
Futures contracts		655,700			—			2,129,624
Foreign currency transactions		—			249,283			—
Net realized gain (loss)		184,347,590			(17,411,664	)		220,914,022
Net change in unrealized appreciation/depreciation on:
Investments		(157,702,781	)		196,628,855			585,792,811
Futures contracts		(148,948	)		—			356,700
Translation of assets and liabilities in foreign currencies		—			(242,199	)		—
Net change in unrealized appreciation/depreciation		(157,851,729	)		196,386,656			586,149,511
Net realized and unrealized gain		26,495,861			178,974,992			807,063,533
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	83,129,631		$	240,974,849		$	1,011,908,919

^a  Net of foreign withholding tax of $  —, $7,614,872 and $  —, respectively.

See notes to financial statements.

18 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares High Dividend ETF						iShares International Select Dividend  ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013			Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	56,633,770		$	74,676,108		$	61,999,857		$	68,116,417
Net realized gain (loss)		184,347,590			98,260,235			(17,411,664	)		(17,875,118	)
Net change in unrealized appreciation/depreciation		(157,851,729	)		310,138,864			196,386,656			215,432,597
Net increase in net assets resulting from operations		83,129,631			483,075,207			240,974,849			265,673,896
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(51,145,158	)		(73,682,512	)		(80,837,478	)		(61,528,187	)
Total distributions to shareholders		(51,145,158	)		(73,682,512	)		(80,837,478	)		(61,528,187	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,095,796,112			2,558,131,484			714,848,539			923,607,076
Cost of shares redeemed		(1,370,377,765	)		(895,137,790	)		—			(13,876,653	)
Net increase (decrease) in net assets from capital share transactions		(274,581,653	)		1,662,993,694			714,848,539			909,730,423
INCREASE (DECREASE) IN NET ASSETS		(242,597,180	)		2,072,386,389			874,985,910			1,113,876,132
NET ASSETS
Beginning of period		3,518,312,494			1,445,926,105			2,059,370,526			945,494,394
End of period	$	3,275,715,314		$	3,518,312,494		$	2,934,356,436		$	2,059,370,526
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	9,590,537		$	4,101,925		$	(8,206,045	)	$	10,631,576
SHARES ISSUED AND REDEEMED
Shares sold		16,000,000			41,000,000			20,150,000			27,800,000
Shares redeemed		(20,300,000	)		(14,650,000	)		—			(500,000	)
Net increase (decrease) in shares outstanding		(4,300,000	)		26,350,000			20,150,000			27,300,000

See notes to financial statements.

FINANCIAL STATEMENTS 19

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Select Dividend ETF
	Six months ended October 31, 2013 (Unaudited)			Year ended April 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	204,845,386		$	404,994,626
Net realized gain		220,914,022			517,991,665
Net change in unrealized appreciation/depreciation		586,149,511			1,091,761,712
Net increase in net assets resulting from operations		1,011,908,919			2,014,748,003
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(204,274,594	)		(404,894,041	)
Total distributions to shareholders		(204,274,594	)		(404,894,041	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		763,724,375			2,065,378,803
Cost of shares redeemed		(687,786,293	)		(1,541,744,541	)
Net increase in net assets from capital share transactions		75,938,082			523,634,262
INCREASE IN NET ASSETS		883,572,407			2,133,488,224
NET ASSETS
Beginning of period		12,430,014,866			10,296,526,642
End of period	$	13,313,587,273		$	12,430,014,866
Undistributed net investment income included in net assets at end of period	$	14,909,847		$	14,339,055
SHARES ISSUED AND REDEEMED
Shares sold		11,400,000			35,200,000
Shares redeemed		(10,550,000	)		(26,950,000	)
Net increase in shares outstanding		850,000			8,250,000

See notes to financial statements.

20 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares High Dividend ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Period from Mar. 29, 2011a to Apr. 30, 2011
Net asset value, beginning of period	$	68.58		$	57.95		$	52.88		$	50.35
Income from investment operations:
Net investment incomeb		1.19			2.11			2.10			0.18
Net realized and unrealized gainc		1.04			10.63			4.41			2.35
Total from investment operations		2.23			12.74			6.51			2.53
Less distributions from:
Net investment income		(1.11	)		(2.11	)		(1.44	)		—
Total distributions		(1.11	)		(2.11	)		(1.44	)		—
Net asset value, end of period	$	69.70		$	68.58		$	57.95		$	52.88
Total return		3.33	%d		22.49	%		12.54	%		5.03	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,275,715		$	3,518,312		$	1,445,926		$	23,798
Ratio of expenses to average net assetse		0.40	%		0.40	%		0.40	%		0.40	%
Ratio of net investment income to average net assetse		3.49	%		3.45	%		3.82	%		3.97	%
Portfolio turnover ratef		26	%		43	%		28	%		1	%

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

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

^d  Not annualized.

^e  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 21

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares International Select Dividend ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	36.07		$	31.73		$	37.94		$	31.27		$	21.24		$	42.81
Income from investment operations:
Net investment incomea		0.95			1.70			1.61			1.29			1.18			1.42
Net realized and unrealized gain (loss)b		2.21			4.29			(6.19	)		6.71			10.06			(20.98	)
Total from investment operations		3.16			5.99			(4.58	)		8.00			11.24			(19.56	)
Less distributions from:
Net investment income		(1.24	)		(1.65	)		(1.63	)		(1.33	)		(1.21	)		(2.01	)
Total distributions		(1.24	)		(1.65	)		(1.63	)		(1.33	)		(1.21	)		(2.01	)
Net asset value, end of period	$	37.99		$	36.07		$	31.73		$	37.94		$	31.27		$	21.24
Total return		9.37	%c		19.76	%		(11.95	)%		26.64	%		53.75	%		(46.81	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,934,356		$	2,059,371		$	945,494		$	523,506		$	129,769		$	52,027
Ratio of expenses to average net assetsd		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assetsd		5.38	%		5.21	%		5.07	%		3.91	%		3.98	%		5.77	%
Portfolio turnover ratee		3	%		24	%		28	%		38	%		62	%		62	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

22 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Select Dividend ETF
	Six months ended Oct. 31, 2013 (Unaudited)			Year ended Apr. 30, 2013			Year ended Apr. 30, 2012			Year ended Apr. 30, 2011			Year ended Apr. 30, 2010			Year ended Apr. 30, 2009
Net asset value, beginning of period	$	65.47		$	56.70		$	53.65		$	47.46		$	34.94		$	59.40
Income from investment operations:
Net investment incomea		1.08			2.17			1.94			1.73			1.59			2.12
Net realized and unrealized gain (loss)b		4.33			8.78			3.00			6.21			12.57			(24.40	)
Total from investment operations		5.41			10.95			4.94			7.94			14.16			(22.28	)
Less distributions from:
Net investment income		(1.07	)		(2.18	)		(1.89	)		(1.75	)		(1.64	)		(2.18	)
Total distributions		(1.07	)		(2.18	)		(1.89	)		(1.75	)		(1.64	)		(2.18	)
Net asset value, end of period	$	69.81		$	65.47		$	56.70		$	53.65		$	47.46		$	34.94
Total return		8.40	%c		19.83	%		9.56	%		17.25	%		41.33	%		(38.17	)%
Ratios/Supplemental data:
Net assets, end of period (000s)	$	13,313,587		$	12,430,015		$	10,296,527		$	6,202,221		$	4,340,584		$	2,960,998
Ratio of expenses to average net assetsd		0.39	%		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Ratio of net investment income to average net assetsd		3.23	%		3.72	%		3.67	%		3.59	%		3.84	%		4.72	%
Portfolio turnover ratee		4	%		13	%		16	%		18	%		25	%		51	%

^a  Based on average shares outstanding throughout each period.

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

^c  Not annualized.

^d  Annualized for periods of less than one year.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 23

Notes to Financial Statements (Unaudited)

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

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

iShares ETF	Former Name a	Diversification Classification
High Dividend	iShares High Dividend Equity Fund		Non-diversified
International Select Dividend	iShares Dow Jones International Select Dividend Index Fund		Diversifed
Select Dividend	iShares Dow Jones Select Dividend Index Fund		Diversifed

^a  The Funds changed their names effective July 1, 2013.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund's investment objective.

Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.

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

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

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

24 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

SECURITY VALUATION

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

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

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

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

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

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

NOTES TO FINANCIAL STATEMENTS 25

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

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

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

As of October 31, 2013, the value of each of the Fund’s investments was classified as Level 1. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of October 31, 2013 are reflected in dividends receivable. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

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

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

FOREIGN TAXES

Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes,” and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable as of October 31, 2013, if any, are disclosed in the Funds' statements of assets and liabilities.

26 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

FEDERAL INCOME TAXES

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

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

iShares ETF	Investment Advisory Fee
High Dividend		0.40	%
International Select Dividend		0.50

For its investment advisory services to the iShares Select Dividend ETF, BFA is entitled to an annual investment advisory fee based on the Fund's allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.4000	%	First $46 billion
	0.3800	a	Over $46 billion, up to and including $81 billion
	0.3610	a	Over $81 billion, up to and including $141 billionb
	0.3430	a	Over $141 billionb

^a  Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

^b  Breakpoint level was added effective July 1, 2013.

The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, and any fees or other

NOTES TO FINANCIAL STATEMENTS 27

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit a remaining portion to BTC as compensation for its services as securities lending agent. The Funds benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BTC bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BTC is also responsible for fees and expenses incurred by each Fund as a result of the investment of cash collateral received for securities on loan in a money market fund managed by BFA or an affiliate.

For the six months ended October 31, 2013, each Fund retained 65% of securities lending income and paid a fee to BTC equal to 35% of such income in the amounts as follows:

iShares ETF	Securities Lending Agent Fees
High Dividend	$	11,710
International Select Dividend		83,000
Select Dividend		693,237

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.

Cross trades for the six months ended October 31, 2013, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. 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.

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Interest – affiliated” in the statements of operations.

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

Investments in issuers considered to be affiliates of the Funds (excluding money market funds) during the six months ended October 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

iShares ETF and Name of Affiliated Issuer	Shares Held at Beginning of Period		Shares Purchased		Shares Sold			Shares Held at End of Period		Value at End of Period		Dividend Income		Net Realized Gain (Loss)
Select Dividend
Avista Corp.		3,314,531		217,175		(259,415	)		3,272,291	$	90,936,967	$	2,009,635	$	317,803
Bank of Hawaii Corp.		2,896,488		175,430		(182,875	)		2,889,043		167,506,713		2,607,309		1,472,685
Black Hills Corp.		2,810,252		188,477		(215,335	)		2,783,394		141,173,744		2,124,160		2,686,247
Mercury General Corp.		3,763,869		—		—			3,763,869		175,245,741		4,610,740		—
Meredith Corp.		3,012,768		200,863		(235,368	)		2,978,263		152,784,892		2,435,144		1,785,839
New Jersey Resources Corp.		2,743,026		166,722		(205,788	)		2,703,960		124,463,279		2,236,110		688,018
Universal Corp.		2,756,480		164,333		(191,701	)		2,729,112		144,724,809		2,705,311		2,046,836
UNS Energy Corp		2,781,478		196,978		(212,775	)		2,765,681		136,845,896		2,420,759		1,694,464
Watsco Inc.		2,292,514		156,635		(158,903	)		2,290,246		218,237,541		1,475,360		4,880,236
										$	1,351,919,582	$	22,624,528	$	15,572,128

28 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

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

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended October 31, 2013 were as follows:

iShares ETF	Purchases		Sales
High Dividend	$	851,345,559	$	842,564,760
International Select Dividend		116,695,158		72,112,105
Select Dividend		453,743,010		450,424,854

In-kind transactions (see Note 4) for the six months ended October 31, 2013 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
High Dividend	$	1,090,136,997	$	1,359,001,866
International Select Dividend		665,826,093		—
Select Dividend		747,406,040		672,539,028

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at net asset value. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

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

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.

5. LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities 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 Funds and

NOTES TO FINANCIAL STATEMENTS 29

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

any additional required collateral is delivered to the Funds on the next business day. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BFA or its affiliates.

As of October 31, 2013, any securities on loan were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The value of any securities on loan as of October 31, 2013 and the value of the related collateral are disclosed in the statements of assets and liabilities. Securities lending income, as disclosed in the statements of operations, represents the income earned from the investment of the cash collateral, net of fees and other payments to and from borrowers, and less the fees paid to BTC as securities lending agent.

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, a Fund can resell or re-pledge the collateral and the borrower can resell or re-pledge the loaned securities.

As of October 31, 2013, the following Funds had securities on loan with a market value as disclosed in the Funds’ statements of assets and liabilities:

iShares ETF	Market Value of Securities on Loan
High Dividend	$	2,344,070
International Select Dividend		50,888,083
Select Dividend		55,800,913

The value of the related collateral disclosed in the Funds’ schedules of investments exceeded the market value of the securities on loan at period end.

6. INCOME TAX INFORMATION

For purposes of U.S. GAAP, 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 values per share.

The tax character of current year distributions will be determined at the end of the current fiscal year.

30 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

As of April 30, 2013, the Funds' fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2017		Expiring 2018		Total
High Dividend	$	1,830,619	$	—	$	—	$	1,830,619
International Select Dividend		16,699,782		4,619,093		17,794,089		39,112,964
Select Dividend		—		729,101,111		1,654,618,293		2,383,719,404

^a  Must be utilized prior to losses subject to expiration.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of October 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
High Dividend	$	3,033,037,591	$	260,109,674	$	(16,652,927	)	$	243,456,747
International Select Dividend		2,606,500,822		456,790,554		(84,402,417	)		372,388,137
Select Dividend		10,565,981,106		3,094,275,928		(284,281,425	)		2,809,994,503

Management has reviewed the tax positions as of October 31, 2013, inclusive of the open tax return years, and has determined that no provision for income tax is required in the Funds' financial statements.

7. FINANCIAL FUTURES CONTRACTS

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

NOTES TO FINANCIAL STATEMENTS 31

Notes to Financial Statements (Unaudited) (Continued)

iSHARES^® TRUST

The following table shows the value of futures contracts held by the Funds as of October 31, 2013 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
	iShares High Dividend ETF		iShares Select Dividend ETF
Equity contracts:
Variation margin/Net assets consist of — net unrealized appreciation (depreciation)a	$	167,384	$	880,475

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

The following table shows the realized and unrealized gains (losses) on futures contracts held by the Funds during the six months ended October 31, 2013 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)
	iShares High Dividend ETF		iShares Select Dividend ETF
Equity contracts:
Futures contracts	$	655,700	$	2,129,624

	Net Change in Unrealized Appreciation/Depreciation
	iShares High Dividend ETF			iShares Select Dividend ETF
Equity contracts:
Futures contracts	$	(148,948	)	$	356,700

The following table shows the average quarter-end balances of open futures contracts for the six months ended October 31, 2013:

	iShares High Dividend ETF		iShares Select Dividend ETF
Average number of contracts purchased		134		239
Average value of contracts purchased	$	11,067,003	$	20,073,225

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

32 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I.  iShares High Dividend ETF and iShares International Select Dividend ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

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

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

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of each Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of each Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 33

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

comparison funds included in the Lipper Group track the same index as any particular Fund, Lipper also provided, and the Board reviewed, a comparison of such Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Funds generally performed in line with their respective performance benchmark indexes over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Funds. In addition, the Board noted that each Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Funds’ performance in comparison with their relevant benchmark indexes. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Funds and their shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

Costs of Services Provided to the Funds and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Funds based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

34 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with substantially similar investment objectives and strategies as any of the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different, generally more extensive services provided to the Funds, as well as other significant differences in the approach of BFA and its affiliates to the Funds, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded exchange traded funds, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, 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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 35

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

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

II.  iShares Select Dividend ETF.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on March 7, 2013, April 23, 2013, and May 3, 2013, to discuss the types of information the Independent Trustees required and the manner in which management would organize and present such information. At a meeting held on May 16, 2013, management presented preliminary information to the Board relating to the continuance of the Advisory Contract, and the Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, and the 15(c) Committee met with management on June 5, 2013, to discuss the additional requests. At a meeting held on June 10-11, 2013, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. The Board, including a majority of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA, including the supplemental information management provided at the request of the Independent Trustees. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Lipper Inc. (“Lipper”), an independent provider of investment company data, regarding the expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses of the Fund in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s applicable peer group pursuant to Lipper’s proprietary methodology, and any registered funds that would otherwise have been excluded from Lipper’s comparison group because of the size, sponsor, inception date, or other differentiating factors included in Lipper’s proprietary selection methodology, but that were nonetheless included at the request of BFA (the “Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track an index similar to that tracked by the Fund, the Lipper Group included in part mutual funds, closed-end funds, exchange traded funds, and/or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers), as applicable. In support of its review of the statistical information, the Board was provided with a detailed description of the methodology used by Lipper to determine the applicable Lipper Groups and to prepare this information. The Board also received a detailed explanation from BFA regarding its rationale for including funds that had been excluded from Lipper’s consideration due to Lipper’s methodology parameters, as well as information showing the effect of including these additional funds in the

36 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

analysis. The Board further noted that due to the limitations in providing comparable funds in the various Lipper Groups, the statistical information provided in the Lipper Report may or may not provide meaningful direct comparisons to the Fund.

The Board also noted that the investment advisory fee rate and overall expenses for the Fund compared favorably to the investment advisory fee rates and overall expenses of the funds in its respective Lipper Group.

In addition, the Board reviewed statistical information prepared by Lipper regarding the performance of the Fund for the one-, three-, five-, ten-year, and since inception periods, as applicable, and the “last quarter” period ended December 31, 2012, and a comparison of the Fund’s performance to its performance benchmark index for the same periods. To the extent that any of the comparison funds included in the Lipper Group track the same index as the Fund, Lipper also provided, and the Board reviewed, a comparison of the Fund’s performance to that of such relevant comparison funds for the same periods. The Board noted that the Fund generally performed in line with its performance benchmark index over the relevant periods. In considering this information, the Board noted that the Lipper Group may include funds that are not exchange traded funds or index funds, and that may have different investment objectives and/or benchmarks from the Fund. In addition, the Board noted that the Fund seeks to track its own benchmark index and that, during the prior year, the Board received periodic reports on the Fund’s performance in comparison with its relevant benchmark index. Such periodic comparative performance information, including detailed information on certain specific iShares funds requested by the Board, was also considered.

Based on this review, the other factors considered at the meeting, and their general knowledge of mutual fund pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to shareholder servicing and support, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the Fund and its shareholders. The Board acknowledged that resources to support the iShares funds and their shareholders have been added or enhanced since BlackRock’s acquisition of BFA in December 2009, including in such areas as investor education, product management, customized portfolio consulting support, and capital markets support. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment and risk management processes and strategies provided at the June 10-11, 2013 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates — The Board reviewed information about the profitability to BlackRock of the Fund based on the fees payable to BFA and its affiliates (including fees under the

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 37

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

Advisory Contract), and all other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee had focused on the methodology and proposed presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on extensively by the 15(c) Committee during its meetings and addressed by management. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished between fixed and variable costs, and explained how the nature of such costs may impact the existence of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that the revisions of the Advisory Contract to provide additional breakpoints had been subject to further negotiation after receipt of management’s proposal, and that at the request of the Board, management had modified its initial proposal regarding adding additional breakpoints to the Fund. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future. Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rate reflects appropriate sharing of potential economies of scale with the Fund’s shareholders and supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end and closed-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (together, the “Other Accounts”). The Board noted that BFA and its affiliates do not manage Other Accounts with a substantially similar investment objective and strategy as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different, generally more extensive services provided to the Fund, as well as other significant differences in the approach of BFA and its affiliates to the Fund, on one hand, and to the Other Accounts, on the other. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/

38 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

management fee rates for the Other Accounts that are institutional clients of BFA (or its affiliates) and concluded that the differences appeared to be consistent with the factors discussed.

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

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

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 39

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

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

	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
High Dividend	$	1.111322	$	—	$	—	$	1.111322		100	%		—	%		—	%		100	%
International Select Dividend		1.188076		—		0.054783		1.242859		96			—			4			100
Select Dividend		1.068080		—		0.006061		1.074141		99			—			1			100

40 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 41

Notes:

42 2013 iSHARES SEMI-ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices, LLC, 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.

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

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

©2013 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.

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iS-SAR-46-1013

Item 2. Code of Ethics.

Not applicable to this semi-annual filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this semi-annual filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this semi-annual filing.

Item 6. Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s Principal Financial Officer) have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in Section 4(a) of the attached certification.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Not applicable to this semi-annual filing.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares Trust

By:	/s/ Michael Latham
	Michael Latham, President (Principal Executive Officer)
Date:	December 27, 2013

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/ Michael Latham
	Michael Latham, President (Principal Executive Officer)
Date:	December 27, 2013
By:	/s/ Jack Gee
	Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:	December 27, 2013