N-CSR 1 d511151dncsr.htm ISHARES TRUST iShares Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT

OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09729

 

 

iShares Trust

(Exact name of registrant as specified in charter)

 

 

c/o BlackRock Fund Advisors

400 Howard Street, San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

 

 

The Corporation Trust Company

1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

 

 

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

Date of fiscal year end: April 30, 2023

Date of reporting period: April 30, 2023

 

 

 

Item 1.

Reports to Stockholders.

(a) The Report to Shareholders is attached herewith.

 

LOGO

  APRIL 30, 2023

 

   2023 Annual Report

 

iShares Trust

 

·  

iShares Core Dividend ETF  |  DIVB  |  Cboe BZX

·  

iShares Core Dividend Growth ETF  |  DGRO  |  NYSE Arca

·  

iShares Core High Dividend ETF  |  HDV  |  NYSE Arca

·  

iShares Select Dividend ETF  |  DVY  |  NASDAQ

 

The Markets in Review

Dear Shareholder,

Investors faced an uncertain economic landscape during the 12-month reporting period ended April 30, 2023, amid mixed indicators and rapidly changing market conditions. The U.S. economy returned to modest growth beginning in the third quarter of 2022, although the pace of growth slowed thereafter. Inflation was elevated, reaching a 40-year high as labor costs grew rapidly and unemployment rates reached the lowest levels in decades. However, inflation moderated as the period continued, while continued strength in consumer spending backstopped the economy.

Equity returns varied substantially, as large-capitalization U.S. stocks gained for the period amid a rebound in big tech stocks, whereas small-capitalization U.S. stocks declined. International equities from developed markets advanced strongly, while emerging market stocks declined, pressured by higher interest rates and volatile commodities prices.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bonds posted a positive return as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. In addition, the Fed added liquidity to markets amid the failure of prominent regional banks.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth was modest in the last year, we believe that stickiness in services inflation and continued wage growth will keep inflation above central bank targets for some time. Although the Fed has decelerated the pace of interest rate hikes and indicated a pause could be its next step, we believe that the Fed still seems determined to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions. Turmoil in the banking sector late in the period highlighted the potential for the rapid increase in interest rates to disrupt markets with little warning.

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar could provide a supportive backdrop. We also see selective, long-term opportunities in credit, where we believe that valuations are appealing, and higher yields offer attractive income. However, we are neutral on credit in the near term, as we’re concerned about tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most significant opportunities in short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of April 30, 2023  
     6-Month      12-Month  
   

U.S. large cap equities (S&P 500® Index)

     8.63 %      2.66 % 
   

U.S. small cap equities (Russell 2000® Index)

     (3.45 )      (3.65 ) 
   

International equities
(MSCI Europe, Australasia, Far East Index)

     24.19       8.42  
   

Emerging market equities (MSCI Emerging Markets Index)

     16.36       (6.51 ) 
   

3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)

     2.09       2.83  
   

U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)

     7.14       (1.68 ) 
   

U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)

     6.91       (0.43 ) 
   

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

     7.65       2.87  
   

U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

     6.21       1.21  

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

2  

T H I S    P A G E    I S    N  O T    P A R T    O F    Y O U R    F U N D     R E P O R T

Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

   

Market Overview

      4  

Fund Summary

      5  

About Fund Performance

      13  

Disclosure of Expenses

      13  

Schedules of Investments

      14  

Financial Statements:

   

Statements of Assets and Liabilities

      35  

Statements of Operations

      36  

Statements of Changes in Net Assets

      37  

Financial Highlights

      39  

Notes to Financial Statements

      43  

Report of Independent Registered Public Accounting Firm

      51  

Important Tax Information

      52  

Statement Regarding Liquidity Risk Management Program

      53  

Supplemental Information

      54  

Trustee and Officer Information

      56  

General Information

      59  

Glossary of Terms Used in this Report

      60  

 

 

  3

Market Overview

 

iShares Trust

Domestic Market Overview

U.S. stocks advanced for the 12 months ended April 30, 2023 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned 1.50%. Despite headwinds, including elevated inflation and rapid tightening of monetary policy, equities were supported by the economy’s continued resilience. While inflation was high throughout the reporting period, the pace of inflationary growth slackened, driving investor optimism. Markets endured in the face of disruption from the banking industry late in the reporting period. In March 2023, two banks suddenly failed, representing the second and third largest bank failures in U.S. history by asset value and leading to concern about the stability of a third bank. However, government agencies acted swiftly to organize a sale of the failed banks’ assets and inject liquidity, and equity prices recovered.

Inflation was a significant driver of the economic outlook. As the reporting period began, the consumer price index, a widely followed measure of inflation, stood at a multi-decade high. Strong consumer spending and a tight labor market, along with continued supply chain disruptions in Asia, combined to drive prices higher. The rate of inflation began to decline beginning in July 2022, continuing to decelerate for 10 consecutive months. Nonetheless, inflation remained elevated by historic standards, and higher prices negatively impacted both consumers and businesses.

The U.S. economy recovered from a contraction in the first half of 2022 to post modest growth in the second half of 2022 and the first quarter of 2023. Consumers continued to power the economy with growing spending, despite higher prices for many consumer goods and services. The strong labor market supported spending, as unemployment remained very low, at one point dropping to the lowest posted level since 1969. Furthermore, the labor force participation rate — which measures the total proportion of working age persons employed or looking for work — rose, indicating that more people were being drawn into the labor force. Amid tightening labor supply, wages rose significantly, with the largest gains at the lower end of the wage spectrum.

To contain inflation, the U.S. Federal Reserve Bank (“Fed”) tightened monetary policy rapidly, raising short-term interest rates eight times over the course of the reporting period. The pace of tightening accelerated as the Fed twice stepped up the increment of increase before reducing it again as inflation began to subside. The Fed also started to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic. While the Fed indicated that more tightening could be needed to achieve its long-term inflation goal, it sounded a more cautious note about the potential for further interest rate increases near the end of the reporting period.

Despite economic headwinds, corporate profits remained robust, as many companies were able to sufficiently raise prices to preserve profit margins even in the face of rising labor and input costs. Nonetheless, profits declined overall in the fourth quarter of 2022, and the yield curve (a graphical representation of U.S. Treasury rates at different maturities) inverted, a sign that markets were concerned about the impact of higher borrowing costs on the economy. Furthermore, dwindling personal savings and rising household debt raised questions about the sustainability of consumer spending as an engine of economic growth.

 

 

4  

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Fund Summary as of April 30, 2023    iShares® Core Dividend ETF

 

Investment Objective

The iShares Core Dividend ETF (the “Fund”) (formerly the iShares U.S. Dividend and Buyback ETF) seeks to track the investment results of an index composed of U.S. stocks with a history of dividend payments and/or share buybacks, as represented by the Morningstar® US Dividend and Buyback IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
     1 Year     5 Years     Since
Inception		     1 Year     5 Years     Since
Inception		  

Fund NAV

     (1.75 )%      10.66 %      10.11 %      (1.75 )%      65.91 %      69.50 % 

Fund Market

     (1.71 )      10.65       10.12       (1.71 )      65.88       69.52  

Index

     (1.62 )      10.92       10.37       (1.62 )      67.88       71.77  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was November 7, 2017. The first day of secondary market trading was November 9, 2017.

Past performance is not and indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         
                                                          
 

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

                   

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

     

Annualized    

Expense    

Ratio    

  $        1,000.00          $       1,025.60          $          0.25               $       1,000.00          $        1,024.55          $          0.25        0.05%

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D    S U M M A R Y

   5

Fund Summary as of April 30, 2023 (continued)    iShares® Core Dividend ETF

 

Portfolio Management Commentary

Stocks with histories of paying dividends or making buybacks declined moderately for the reporting period in an environment of rising interest rates and elevated inflation. Despite the relative attractiveness of rising bond yields, dividend-bearing stocks witnessed record inflows as some investors viewed their underlying businesses as more resilient in an extended downturn.

Stocks in the communication services sector detracted the most from the Index’s return, particularly high-valuation stocks with growth prospects in the interactive media and services industry. Demand for online advertisements slowed during the reporting period as businesses cut back on marketing expenditures in a more challenging economic environment. Heightened competition also worked against large companies in the industry, which lost market share to new players. Significant expenditures on low-profitability ventures in virtual reality also dented earnings.

Information technology companies also detracted from the Index’s return as increased concerns about economic growth worked against investors’ growth expectations for information technology stocks, which are sensitive to economic conditions. Lingering COVID-19 production disruptions in China lowered sales margins of a large technology hardware, storage, and peripherals company, resulting in the company’s first quarterly profit miss since 2016.

On the upside, U.S. oil, gas, and consumable fuels companies contributed the most to the Index’s performance as high energy prices sent their stocks climbing to record highs. Companies in the industry posted record profits and rewarded shareholders by buying back their own stock and raising dividends. Despite relatively high oil prices, oil and gas companies resisted political pressure to increase production, focusing instead on returning cash to shareholders. This constrained supply, putting upward pressure on prices.

The consumer discretionary sector also contributed to the Index’s return, as higher pricing and production efficiency gains supported profitability in the restaurant industry. Improved staffing and measures to improve the accuracy and speed of fast-food ordering also benefited stocks in the industry.

Portfolio Information

 

SECTOR ALLOCATION

 

 

  
Sector   Percent of   
Total Investments(a)		  

 

  

Information Technology

     18.5%  

Financials

     18.3     

Health Care

     11.3     

Consumer Staples

     11.1     

Industrials

     10.3     

Consumer Discretionary

     9.3     

Energy

     8.7     

Communication Services

     3.5     

Utilities

     3.3     

Materials

     2.9     

Real Estate

     2.8     

 

  

TEN LARGEST HOLDINGS

 

 

  
Security   Percent of   
Total Investments(a)		  

 

  

Broadcom, Inc.

     3.2%  

Exxon Mobil Corp.

     3.0     

Procter & Gamble Co.

     2.8     

Cisco Systems, Inc.

     2.7     

Home Depot, Inc.

     2.5     

Oracle Corp.

     2.4     

JPMorgan Chase & Co.

     2.4     

Johnson & Johnson

     2.2     

Lowe’s Cos., Inc.

     2.2     

Intel Corp.

     2.0     

 

  
 
(a) 

Excludes money market funds.

 

 

6  

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Fund Summary as of April 30, 2023    iShares® Core Dividend Growth ETF

 

Investment Objective

The iShares Core Dividend Growth ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends, as represented by the Morningstar® U.S. Dividend Growth IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
     1 Year     5 Years     Since
Inception		     1 Year     5 Years     Since
Inception		  

Fund NAV

     3.13 %      11.12 %      10.89 %      3.13 %      69.40 %      150.61 % 

Fund Market

     3.12       11.11       10.89       3.12       69.37       150.62  

Index

     3.20       11.21       10.96       3.20       70.08       151.98  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was June 10, 2014. The first day of secondary market trading was June 12, 2014.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         
                                                          
 

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

                   

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

     

Annualized    

Expense    

Ratio    

  $        1,000.00          $       1,052.00          $          0.41               $       1,000.00          $        1,024.40          $          0.40        0.08% 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D    S U M M A R Y

   7

Fund Summary as of April 30, 2023 (continued)    iShares® Core Dividend Growth ETF

 

Portfolio Management Commentary

Stocks with a history of consistently increasing dividends advanced moderately for the reporting period amid rapidly rising interest rates and a weakening global economy. Dividend-bearing stocks witnessed record inflows as investors viewed their underlying businesses as more resilient in an extended economic downturn.

The industrials sector contributed the most to the Index’s return, with the capital goods industry accounting for the bulk of that gain. Industrial machinery and supplies and components producers benefited as China’s market reopened after easing strict pandemic restrictions, reducing supply-chain challenges. Pent-up demand for equipment upgrades increased revenue for producers of aircraft parts, large truck engines, and related components. Meanwhile, solid growth in orders to help Ukraine replenish weapons buoyed defense contractors, as did expectations for increased defense spending by the U.S. and other members of the North Atlantic Treaty Organization (“NATO”).

The consumer discretionary sector contributed to the Index’s return, led by stocks within the hotels, restaurants, and leisure industry. Investors rewarded large fast-food and drink chains whose growth surpassed competitors in past economic downturns. Despite the current economic challenges, these companies gained market share, exhibited solid sales growth, and maintained forecasts for that growth to continue, particularly with China’s reopening. Higher product prices and production efficiency gains supported that growth. Improved staffing and measures to improve the accuracy and speed of fast-food ordering also benefited stocks in the industry.

Information technology stocks also contributed to the Index’s performance as the sector rebounded strongly in early 2023. High-profile companies known for substantial dividends again increased their payouts to investors by moderate to considerable margins. Demand for cloud computing services and semiconductors used in data centers and networking equipment remained strong. Sales also benefited from the surging interest in artificial intelligence capabilities.

Portfolio Information

 

SECTOR ALLOCATION

 

 

  
Sector   Percent of   
Total Investments(a)		  

 

  

Health Care

     19.6%  

Financials

     18.3     

Information Technology

     16.0     

Consumer Staples

     11.0     

Industrials

     10.8     

Energy

     7.2     

Utilities

     6.8     

Consumer Discretionary

     6.2     

Materials

     2.5     

Communication Services

     1.6     

 

  

TEN LARGEST HOLDINGS

 

 

  
Security   Percent of   
Total Investments(a)		  

 

  

Microsoft Corp.

     3.5%  

Apple Inc.

     3.2     

Exxon Mobil Corp.

     3.1     

Johnson & Johnson

     3.0     

JPMorgan Chase & Co.

     2.8     

Chevron Corp.

     2.7     

AbbVie, Inc.

     2.5     

Procter & Gamble Co.

     2.4     

Pfizer, Inc.

     2.1     

Home Depot, Inc.

     1.9     

 

  
 
(a) 

Excludes money market funds.

 

 

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Fund Summary as of April 30, 2023    iShares® Core High Dividend ETF

 

Investment Objective

The iShares Core High Dividend ETF (the “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 IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     3.16 %      8.01 %      7.97 %      3.16 %      46.97 %      115.32 % 

Fund Market

     3.18       8.01       7.97       3.18       46.98       115.33  

Index

     3.24       8.10       8.10       3.24       47.60       117.94  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

 

LOGO

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         
                                                          
 

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

                   

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

     

 Annualized    

Expense    

Ratio    

  

 

 

  $        1,000.00          $         1,019.50          $          0.40               $        1,000.00          $         1,024.40          $          0.40        0.08 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D    S U M M A R Y

   9

Fund Summary as of April 30, 2023 (continued)    iShares® Core High Dividend ETF

 

Portfolio Management Commentary

Stocks with a history of paying high dividends advanced modestly for the reporting period amid rapidly rising interest rates and a weakening global economy. Dividend-bearing stocks witnessed record inflows as investors viewed their underlining businesses as more resilient in an extended economic downturn.

Energy stocks contributed the most to the Index’s return, led by integrated oil and gas companies. Global crude oil and natural gas prices surged after Russia’s early 2022 invasion of Ukraine, benefiting exploration and production businesses. The higher prices boosted earnings in upstream businesses for integrated energy firms. Oil and natural gas demand declined somewhat toward the end of the reporting period, but refineries continued performing strongly as lower input prices aided their margins. E.U. sanctions banning imports of Russian fuel and U.S.-led measures capping prices on Russian oil exports also supported higher U.S. refining margins. Meanwhile, both the reopening of China’s economy and production cuts by the Organization of the Petroleum Exporting Countries (“OPEC”) put upward pressure on prices.

The healthcare and information technology sectors also contributed to performance. Within healthcare, biotechnology stocks rose as demand increased for oncology treatment therapies. Revenue from immunology and neurology drugs also increased as the industry shifted focus from COVID-19 treatments. Within information technology, stocks of semiconductor producers increased along with demand for chips used in data centers and networking equipment.

The consumer staples, financials, and utilities sectors all detracted from the Index’s return. Inflation increased expenses for manufacturers of household products, reducing profit margins below pre-pandemic levels as they found it difficult to raise prices. In financials, the Fed’s interest rate increases raised borrowing costs for private equity managers and narrowed net interest income margins for lenders. Utilities providers encountered rising costs and supply chain disruptions that drove higher utility rates for customers and negatively impacted the industry’s finances.

Portfolio Information

 

SECTOR ALLOCATION

 

 

  
Sector   Percent of   
Total Investments(a)		  

 

  

Health Care

     27.2%  

Energy

     25.9     

Information Technology

     12.9     

Communication Services

     9.3     

Utilities

     8.9     

Consumer Staples

     6.0     

Financials

     4.7     

Industrials

     2.8     

Materials

     1.7     

Consumer Discretionary

     0.6     

 

  

TEN LARGEST HOLDINGS

 

 

  
Security   Percent of   
Total Investments(a)		  

 

  

Exxon Mobil Corp.

     8.8%  

Johnson & Johnson

     6.9     

Verizon Communications, Inc.

     6.2     

Chevron Corp.

     6.1     

AbbVie, Inc.

     5.8     

Pfizer, Inc.

     4.9     

Broadcom, Inc.

     4.1     

Coca-Cola Co.

     4.0     

Cisco Systems, Inc.

     3.3     

International Business Machines Corp.

     3.2     

 

  
 
(a) 

Excludes money market funds.

 

 

10  

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Fund Summary  as of April 30, 2023    iShares® Select Dividend ETF

 

Investment Objective

The iShares Select Dividend ETF (the “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™ (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     (1.23 )%      7.90 %      9.72 %      (1.23 )%      46.28 %      152.86 % 

Fund Market

     (1.26 )      7.90       9.72       (1.26 )      46.25       152.74  

Index

     (0.84 )      8.33       10.16       (0.84 )      49.20       163.05  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

 

LOGO

Past performance is not and indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         
                                                          
 

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

                   

 Beginning

Account Value

(11/01/22)

  

 

 

       

 Ending

        Account Value

(04/30/23)

  

 

 

       

 Expenses

      Paid During

the Period

  

 

(a) 

     

 Annualized    

Expense    

Ratio    

  

 

 

  $        1,000.00          $         1,013.20          $          1.91               $        1,000.00          $       1,022.90          $          1.91        0.38 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D    S U M M A R Y

   11

Fund Summary as of April 30, 2023 (continued)    iShares® Select Dividend ETF

 

Portfolio Management Commentary

U.S. stocks with relatively high dividends declined slightly for the reporting period amid rapidly rising interest rates and a weakening global economy. Dividend-bearing stocks witnessed record inflows as investors viewed their underlying businesses as more resilient in an extended economic downturn.

Stocks in the materials sector detracted the most from the Index’s return. A shift in consumer spending from goods to services significantly impacted the containers and packaging industry as the drop in demand for products such as corrugated boxes and containerboard translated into lower sales volumes and compressed margins for packaging producers. Higher operating costs due to inflation and a weakening U.S. dollar were additional factors lowering sales for global consumer packaging firms.

Financials stocks also detracted from the Index’s return following the failure of two regional U.S. banks in the largest collapse for the industry since 2008. The disruption created by the failures led investors to scrutinize the reliability of regional banks’ dividends more closely, amid further credit concerns. Regional banks also reported an increase in outflows, as depositors shifted funds to the perceived stability of larger banks.

On the upside, energy stocks contributed the most to the Index’s return during the reporting period as higher natural gas prices throughout 2022 offset declining oil prices. Oil, gas, and consumable fuels companies posted record profits on strong demand for oil products. Some large oil companies also used excess cash to buy back their own stock and raise dividends.

The healthcare sector also contributed to returns as biotechnology companies increased dividends and stock buybacks, reflecting the robustness of their balance sheets. Biotechnology stocks rose as drug sales increased from a year prior and companies focused on developing their drug pipelines.

Portfolio Information

 

SECTOR ALLOCATION

 

 

  
Sector   Percent of   
Total Investments(a)		  

 

  

Utilities

     28.0%  

Financials

     22.3     

Consumer Staples

     10.6     

Materials

     8.1     

Communication Services

     7.4     

Consumer Discretionary

     7.3     

Energy

     5.7     

Information Technology

     4.0     

Health Care

     3.4     

Industrials

     3.2     

 

  

TEN LARGEST HOLDINGS

 

 

  
Security   Percent of   
Total Investments(a)		  

 

  

Altria Group, Inc.

     2.6%  

Verizon Communications, Inc.

     2.2     

ONEOK, Inc.

     1.8     

AT&T Inc.

     1.8     

Walgreens Boots Alliance, Inc.

     1.7     

Philip Morris International, Inc.

     1.7     

International Business Machines Corp.

     1.6     

LyondellBasell Industries NV, Class A

     1.6     

Dominion Energy, Inc.

     1.6     

Edison International

     1.5     

 

  
 
(a) 

Excludes money market funds.

 

 

12  

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About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

A B O U T    F U N D    P E R F O  R M A N C E    /    D I S C L O S U R E    O F    E X  P E N S E S

   13

Schedule of Investments

April 30, 2023

   

iShares® Core Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.4%  

General Dynamics Corp.

     3,427     $ 748,251  

Huntington Ingalls Industries, Inc.

     416       83,891  

L3Harris Technologies, Inc.

     5,067       988,825  

Lockheed Martin Corp.

     5,462       2,536,826  

Raytheon Technologies Corp.

     19,372       1,935,263  
   

 

 

  
          6,293,056  
Air Freight & Logistics — 1.4%            

CH Robinson Worldwide, Inc.

     4,142       417,804  

FedEx Corp.

     4,900       1,116,122  

United Parcel Service, Inc., Class B

     11,056       1,987,979  
   

 

 

  
      3,521,905  
Automobile Components — 0.1%            

Autoliv, Inc.

     877       75,255  

Dana, Inc.

     1,516       22,422  

LCI Industries

     333       37,616  

Lear Corp.

     660       84,255  
   

 

 

  
      219,548  
Automobiles — 0.3%            

Ford Motor Co.

     60,586       719,762  

Thor Industries, Inc.

     701       55,393  
   

 

 

  
      775,155  
Banks — 9.1%            

Associated Banc-Corp.

     2,371       42,275  

Atlantic Union Bankshares Corp.

     1,232       35,260  

Bank of America Corp.

     161,585       4,731,209  

Bank of Hawaii Corp.

     631       30,559  

Bank OZK

     2,779       99,266  

Banner Corp.

     212       10,583  

BOK Financial Corp.

     379       31,787  

Cathay General Bancorp

     1,910       60,872  

Citigroup, Inc.

     50,820       2,392,097  

Citizens Financial Group, Inc.

     7,537       233,195  

Columbia Banking System, Inc.

     1,200       25,632  

Comerica, Inc.

     3,011       130,587  

Cullen/Frost Bankers, Inc.

     479       52,810  

CVB Financial Corp.

     1,317       19,715  

East West Bancorp, Inc.

     1,225       63,320  

Fifth Third Bancorp

     14,071       368,660  

First Financial Bancorp

     654       13,538  

First Hawaiian, Inc.

     2,130       40,704  

First Horizon Corp.

     7,846       137,697  

First Interstate BancSystem, Inc., Class A

     2,115       54,123  

First Merchants Corp.

     731       21,331  

FNB Corp.

     4,644       53,313  

Fulton Financial Corp.

     2,426       28,942  

Glacier Bancorp, Inc.

     922       30,638  

Hancock Whitney Corp.

     785       28,668  

Heartland Financial U.S.A., Inc.

     334       10,875  

Home BancShares, Inc.

     2,362       51,421  

Huntington Bancshares, Inc.

     23,353       261,554  

Independent Bank Group, Inc.

     622       22,628  

International Bancshares Corp.

     610       26,029  

JPMorgan Chase & Co.

     44,902       6,207,252  

KeyCorp

     20,780       233,983  

M&T Bank Corp.

     3,391       426,588  

New York Community Bancorp, Inc., Class A

     15,984       170,869  

Old National Bancorp

     3,649       48,933  

Pacific Premier Bancorp, Inc.

     361       8,029  

PacWest Bancorp

     1,678       17,032  
Security   Shares     Value  
Banks (continued)            

Park National Corp.

     140     $ 15,165  

PNC Financial Services Group, Inc.

     9,021       1,174,985  

Popular, Inc.

     2,778       166,708  

Prosperity Bancshares, Inc.

     1,052       65,876  

Regions Financial Corp.

     13,211       241,233  

SouthState Corp.

     1,033       71,256  

Synovus Financial Corp.

     2,318       71,394  

Towne Bank

     700       16,583  

Truist Financial Corp.

     24,506       798,405  

Trustmark Corp.

     329       7,860  

U.S. Bancorp

     19,649       673,568  

United Bankshares, Inc.

     1,579       52,312  

United Community Banks, Inc.

     781       19,447  

Valley National Bancorp

     5,800       54,404  

Washington Federal, Inc.

     1,940       54,398  

Webster Financial Corp.

     2,561       95,525  

Wells Fargo & Co.

     91,722       3,645,950  

WesBanco, Inc.

     1,823       48,528  

Zions Bancorp N.A.

     4,298       119,742  
   

 

 

  
        23,615,313  
Beverages — 1.9%            

Coca-Cola Co.

     37,154       2,383,429  

Molson Coors Beverage Co., Class B

     1,882       111,941  

PepsiCo, Inc.

     13,246       2,528,529  
   

 

 

  
      5,023,899  
Biotechnology — 3.3%            

AbbVie, Inc.

     24,611       3,719,214  

Amgen, Inc.

     14,121       3,385,369  

Gilead Sciences, Inc.

     17,856       1,467,942  
   

 

 

  
      8,572,525  
Broadline Retail — 0.0%            

Nordstrom, Inc.

     1,732       26,777  
   

 

 

  
Building Products — 0.7%            

A O Smith Corp.

     2,598       177,417  

Fortune Brands Innovations, Inc.

     3,943       255,073  

Johnson Controls International PLC

     11,219       671,345  

Masco Corp.

     7,737       414,007  

Owens Corning

     2,753       294,048  
   

 

 

  
      1,811,890  
Capital Markets — 4.3%            

Artisan Partners Asset Management, Inc., Class A

     1,511       52,386  

Bank of New York Mellon Corp.

     17,530       746,603  

BlackRock, Inc.(a)

    1,971       1,322,935  

Blackstone, Inc., Class A, NVS

     11,876       1,060,883  

Blue Owl Capital, Inc., Class A

     4,740       53,372  

Carlyle Group, Inc.

     3,041       92,234  

CME Group, Inc., Class A

     4,076       757,199  

Cohen & Steers, Inc.

     311       18,679  

Federated Hermes, Inc., Class B

     2,144       88,740  

Franklin Resources, Inc.

     4,119       110,719  

Goldman Sachs Group, Inc.

     5,810       1,995,386  

Houlihan Lokey, Inc., Class A

     916       83,704  

Invesco Ltd.

     7,960       136,355  

Janus Henderson Group PLC

     4,493       116,593  

Jefferies Financial Group, Inc.

     5,827       186,639  

Moelis & Co., Class A

     1,895       71,783  

Morgan Stanley

     37,053       3,333,658  

Northern Trust Corp.

     2,259       176,563  

State Street Corp.

     3,839       277,406  
 

 

 

14  

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Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)            

Stifel Financial Corp.

     1,210     $ 72,564  

T Rowe Price Group, Inc.

     5,025       564,458  
   

 

 

  
      11,318,859  
Chemicals — 2.0%            

Air Products & Chemicals, Inc.

     1,623       477,746  

Avient Corp.

     784       30,192  

Cabot Corp.

     461       33,081  

Celanese Corp., Class A

     2,059       218,748  

Chemours Co.

     4,649       135,147  

Dow, Inc.

     19,476       1,059,494  

DuPont de Nemours, Inc.

     17,264       1,203,646  

Eastman Chemical Co.

     5,258       443,092  

Huntsman Corp.

     8,099       216,972  

International Flavors & Fragrances, Inc.

     3,029       293,692  

LyondellBasell Industries NV, Class A

     5,364       507,488  

NewMarket Corp.

     184       73,526  

Olin Corp.

     4,844       268,358  

Scotts Miracle-Gro Co.

     970       64,806  

Sensient Technologies Corp.

     405       30,156  

Tronox Holdings PLC, Class A

     1,592       21,795  
   

 

 

  
          5,077,939  
Commercial Services & Supplies — 0.0%            

Brady Corp., Class A, NVS

     635       32,404  
   

 

 

  
Communications Equipment — 2.9%            

Cisco Systems, Inc.

     150,449       7,108,715  

Juniper Networks, Inc.

     12,150       366,323  
   

 

 

  
      7,475,038  
Construction & Engineering — 0.0%            

MDU Resources Group, Inc.

     1,486       43,421  
   

 

 

  
Consumer Finance — 0.3%            

Discover Financial Services

     7,345       759,987  
   

 

 

  
Consumer Staples Distribution & Retail — 1.6%  

Albertsons Cos., Inc., Class A

     1,284       26,836  

Kroger Co.

     13,400       651,642  

Sysco Corp.

     5,926       454,761  

Target Corp.

     16,239       2,561,702  

Walgreens Boots Alliance, Inc.

     14,479       510,385  
   

 

 

  
      4,205,326  
Containers & Packaging — 0.6%            

Amcor PLC

     36,631       401,842  

Greif, Inc., Class A, NVS

     341       21,411  

Greif, Inc., Class B

     111       8,740  

International Paper Co.

     15,145       501,451  

Packaging Corp. of America

     1,921       259,835  

Sonoco Products Co.

     1,860       112,753  

Westrock Co.

     6,331       189,487  
   

 

 

  
      1,495,519  
Distributors — 0.1%            

LKQ Corp.

     6,654       384,135  
   

 

 

  
Diversified Consumer Services — 0.1%            

H&R Block, Inc.

     4,189       142,049  
   

 

 

  
Diversified REITs — 0.1%            

WP Carey, Inc.

     2,458       182,384  
   

 

 

  
Diversified Telecommunication Services — 2.4%  

AT&T Inc.

     146,875       2,595,281  
Security   Shares     Value  
Diversified Telecommunication Services (continued)  

Cogent Communications Holdings, Inc.

     796     $ 54,956  

Verizon Communications, Inc.

     94,176       3,656,854  
   

 

 

  
      6,307,091  
Electric Utilities — 1.9%            

Alliant Energy Corp.

     2,590       142,813  

American Electric Power Co., Inc.

     3,446       318,479  

Duke Energy Corp.

     10,576       1,045,755  

Edison International

     5,016       369,177  

Entergy Corp.

     945       101,663  

Evergy, Inc.

     2,660       165,213  

Eversource Energy

     3,442       267,134  

Exelon Corp.

     8,588       364,475  

FirstEnergy Corp.

     3,075       122,385  

Hawaiian Electric Industries, Inc.

     1,227       48,111  

IDACORP, Inc.

     498       55,338  

MGE Energy, Inc.

     268       20,531  

NRG Energy, Inc.

     6,360       217,321  

OGE Energy Corp.

     3,022       113,446  

Otter Tail Corp.

     327       23,528  

Pinnacle West Capital Corp.

     1,659       130,165  

Portland General Electric Co.

     1,260       63,781  

PPL Corp.

     13,710       393,751  

Southern Co.

     10,117       744,105  

Xcel Energy, Inc.

     3,673       256,779  
   

 

 

  
          4,963,950  
Electrical Equipment — 0.5%            

Eaton Corp. PLC

     2,752       459,914  

Emerson Electric Co.

     10,321       859,327  
   

 

 

  
      1,319,241  
Electronic Equipment, Instruments & Components — 0.4%  

Avnet, Inc.

     4,338       178,986  

Corning, Inc.

     19,379       643,770  

National Instruments Corp.

     2,725       158,677  
   

 

 

  
      981,433  
Energy Equipment & Services — 0.2%            

Baker Hughes Co., Class A

     14,168       414,272  

Helmerich & Payne, Inc.

     1,692       56,107  
   

 

 

  
      470,379  
Financial Services — 1.1%            

Apollo Global Management, Inc.

     2,417       153,214  

Equitable Holdings, Inc.

     12,870       334,491  

Essent Group Ltd.

     1,551       65,871  

Fidelity National Information Services, Inc.

     31,609       1,856,081  

MGIC Investment Corp.

     8,974       133,443  

TFS Financial Corp.

     1,454       17,506  

Walker & Dunlop, Inc.

     329       22,145  

Western Union Co.

     13,658       149,282  
   

 

 

  
      2,732,033  
Food Products — 1.7%            

Bunge Ltd.

     1,720       160,992  

Cal-Maine Foods, Inc.

     688       32,680  

Campbell Soup Co.

     2,323       126,139  

Conagra Brands, Inc.

     6,611       250,954  

Flowers Foods, Inc.

     2,320       63,823  

General Mills, Inc.

     9,837       871,853  

Hormel Foods Corp.

     2,510       101,504  

Ingredion, Inc.

     854       90,669  

J M Smucker Co.

     1,431       220,961  

Kellogg Co.

     3,415       238,265  

Kraft Heinz Co.

     10,791       423,763  
 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   15

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)            

Mondelez International, Inc., Class A

     20,384     $ 1,563,860  

Tyson Foods, Inc., Class A

     5,968       372,940  
   

 

 

  
      4,518,403  
Gas Utilities — 0.1%  

National Fuel Gas Co.

     1,016       56,794  

New Jersey Resources Corp.

     898       46,373  

ONE Gas, Inc.

     234       18,006  

Spire, Inc.

     594       40,232  

UGI Corp.

     2,732       92,560  
   

 

 

  
      253,965  
Ground Transportation — 1.8%  

Norfolk Southern Corp.

     6,657       1,351,571  

Ryder System, Inc.

     1,391       110,111  

Union Pacific Corp.

     15,970       3,125,329  
   

 

 

  
          4,587,011  
Health Care Equipment & Supplies — 0.9%  

Baxter International, Inc.

     7,463       355,836  

Medtronic PLC

     21,316       1,938,690  
   

 

 

  
      2,294,526  
Health Care Providers & Services — 1.1%  

Cardinal Health, Inc.

     7,815       641,611  

CVS Health Corp.

     19,232       1,409,898  

Patterson Cos., Inc.

     1,374       37,249  

Premier, Inc., Class A

     2,408       80,259  

Quest Diagnostics, Inc.

     5,012       695,716  

Select Medical Holdings Corp.

     2,081       63,470  
   

 

 

  
      2,928,203  
Health Care REITs — 0.2%  

Healthpeak Properties, Inc.

     7,361       161,721  

Medical Properties Trust, Inc.

     5,864       51,427  

National Health Investors, Inc.

     1,307       65,050  

Omega Healthcare Investors, Inc.

     6,546       175,171  

Physicians Realty Trust

     696       10,036  

Sabra Health Care REIT, Inc.

     3,524       40,174  

Ventas, Inc.

     2,800       134,540  
   

 

 

  
      638,119  
Hotel & Resort REITs — 0.0%  

Apple Hospitality REIT, Inc.

     2,794       41,603  
   

 

 

  
Hotels, Restaurants & Leisure — 2.3%  

Bloomin’ Brands, Inc.

     1,400       34,678  

Cracker Barrel Old Country Store, Inc.

     653       69,323  

Darden Restaurants, Inc.

     3,199       486,024  

Marriott Vacations Worldwide Corp.

     1,047       140,884  

McDonald’s Corp.

     8,127       2,403,560  

Papa John’s International, Inc.

     582       43,528  

Red Rock Resorts, Inc., Class A

     2,324       113,411  

Starbucks Corp.

     13,637       1,558,573  

Travel + Leisure Co.

     2,402       91,925  

Vail Resorts, Inc.

     439       105,588  

Wendy’s Co.

     4,442       98,168  

Wyndham Hotels & Resorts, Inc.

     1,681       114,678  

Yum! Brands, Inc.

     5,261       739,591  
   

 

 

  
      5,999,931  
Household Durables — 0.8%  

Garmin Ltd.

     3,357       329,557  

KB Home

     1,855       81,286  

Leggett & Platt, Inc.

     2,628       84,911  

Lennar Corp., Class A

     5,603       632,074  

Lennar Corp., Class B

     338       33,063  
Security   Shares     Value  
Household Durables (continued)            

MDC Holdings, Inc.

     1,020     $ 41,789  

Newell Brands, Inc.

     12,012       145,946  

PulteGroup, Inc.

     6,798       456,486  

Toll Brothers, Inc.

     2,684       171,534  
   

 

 

  
      1,976,646  
Household Products — 3.6%  

Clorox Co.

     1,934       320,309  

Colgate-Palmolive Co.

     13,051       1,041,470  

Energizer Holdings, Inc.

     1,070       35,770  

Kimberly-Clark Corp.

     4,775       691,850  

Procter & Gamble Co.

     46,559       7,280,896  

Reynolds Consumer Products, Inc.

     646       18,107  

Spectrum Brands Holdings, Inc.

     917       60,981  
   

 

 

  
          9,449,383  
Independent Power and Renewable Electricity Producers — 0.2%  

AES Corp.

     5,648       133,632  

Clearway Energy, Inc., Class A

     617       17,881  

Clearway Energy, Inc., Class C

     1,284       38,995  

Vistra Corp.

     17,069       407,266  
   

 

 

  
      597,774  
Industrial Conglomerates — 1.4%  

3M Co.

     15,589       1,655,864  

Honeywell International, Inc.

     10,353       2,068,943  
   

 

 

  
      3,724,807  
Industrial REITs — 0.4%  

EastGroup Properties, Inc.

     77       12,825  

First Industrial Realty Trust, Inc.

     495       25,973  

LXP Industrial Trust

     2,038       19,157  

Prologis, Inc.

     7,579       949,270  
   

 

 

  
      1,007,225  
Insurance — 3.4%  

Aflac, Inc.

     12,612       880,948  

Allstate Corp.

     8,371       969,027  

American International Group, Inc.

     23,215       1,231,324  

Axis Capital Holdings Ltd.

     755       42,688  

Cincinnati Financial Corp.

     1,689       179,777  

CNA Financial Corp.

     369       14,358  

Everest Re Group Ltd.

     292       110,376  

Fidelity National Financial, Inc., Class A

     7,307       259,325  

First American Financial Corp.

     2,447       140,972  

Hanover Insurance Group, Inc.

     441       52,726  

Hartford Financial Services Group, Inc.

     7,914       561,815  

Kemper Corp.

     797       38,774  

MetLife, Inc.

     18,393       1,128,043  

Old Republic International Corp.

     4,013       101,408  

Principal Financial Group, Inc.

     5,535       413,409  

Prudential Financial, Inc.

     10,926       950,562  

Reinsurance Group of America, Inc.

     597       84,965  

Travelers Cos., Inc.

     4,619       836,686  

Unum Group

     2,341       98,790  

Willis Towers Watson PLC

     3,362       778,639  
   

 

 

  
      8,874,612  
Interactive Media & Services — 0.0%  

Shutterstock, Inc.

     248       16,616  
   

 

 

  
IT Services — 1.9%  

Cognizant Technology Solutions Corp., Class A

     17,131       1,022,892  

International Business Machines Corp.

     31,231       3,947,911  
   

 

 

  
      4,970,803  
 

 

 

16  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Leisure Products — 0.2%  

Brunswick Corp.

     1,465     $ 124,217  

Hasbro, Inc.

     2,618       155,038  

Polaris, Inc.

     1,638       177,969  
   

 

 

  
      457,224  
Machinery — 1.6%  

Allison Transmission Holdings, Inc.

     3,217       156,957  

Caterpillar, Inc.

     7,608       1,664,630  

Cummins, Inc.

     2,187       514,033  

Flowserve Corp.

     1,092       36,462  

Hillenbrand, Inc.

     1,574       71,806  

Illinois Tool Works, Inc.

     3,611       873,645  

Kennametal, Inc.

     1,362       35,358  

Snap-on, Inc.

     700       181,587  

Stanley Black & Decker, Inc.

     6,031       520,717  
   

 

 

  
          4,055,195  
Marine Transportation — 0.0%  

Matson, Inc.

     1,744       118,644  
   

 

 

  
Media — 1.0%  

Comcast Corp., Class A

     42,319       1,750,737  

Fox Corp., Class B

     3,339       101,973  

Interpublic Group of Cos., Inc.

     5,787       206,770  

John Wiley & Sons, Inc., Class A

     730       28,156  

Nexstar Media Group, Inc., Class A

     1,520       263,644  

Omnicom Group, Inc.

     4,140       374,960  
   

 

 

  
      2,726,240  
Metals & Mining — 0.3%  

Newmont Corp.

     15,494       734,415  

Southern Copper Corp.

     1,300       99,879  

Worthington Industries, Inc.

     666       39,554  
   

 

 

  
      873,848  
Mortgage Real Estate Investment Trusts (REITs) — 0.1%  

Blackstone Mortgage Trust, Inc., Class A

     1,254       22,873  

Claros Mortgage Trust, Inc.

     4,069       48,665  

Rithm Capital Corp.

     8,514       69,475  

Starwood Property Trust, Inc.

     3,072       54,958  
   

 

 

  
      195,971  
Multi-Utilities — 1.0%  

Ameren Corp.

     1,136       101,070  

Black Hills Corp.

     289       18,869  

CenterPoint Energy, Inc.

     5,302       161,552  

CMS Energy Corp.

     2,719       169,285  

Consolidated Edison, Inc.

     2,644       260,355  

Dominion Energy, Inc.

     7,059       403,351  

DTE Energy Co.

     335       37,657  

Public Service Enterprise Group, Inc.

     7,326       463,003  

Sempra Energy

     4,363       678,403  

WEC Energy Group, Inc.

     3,610       347,174  
   

 

 

  
      2,640,719  
Office REITs — 0.2%  

Boston Properties, Inc.

     2,810       149,942  

Corporate Office Properties Trust

     1,672       38,272  

Cousins Properties, Inc.

     1,927       42,028  

Douglas Emmett, Inc.

     4,327       55,732  

Highwoods Properties, Inc.

     2,477       56,773  

Kilroy Realty Corp.

     2,264       66,199  

Vornado Realty Trust

     5,516       82,795  
   

 

 

  
      491,741  
Oil, Gas & Consumable Fuels — 8.5%  

Antero Midstream Corp.

     9,665       103,995  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

California Resources Corp.

     2,269     $ 91,895  

Chesapeake Energy Corp.

     6,053       500,462  

Chevron Corp.

     20,510       3,457,576  

Chord Energy Corp.

     859       122,261  

Civitas Resources, Inc.

     475       32,799  

Coterra Energy, Inc.

     24,744       633,446  

CVR Energy, Inc.

     534       14,066  

Devon Energy Corp.

     24,064       1,285,740  

Diamondback Energy, Inc.

     5,626       800,017  

DT Midstream, Inc.

     1,635       80,556  

EOG Resources, Inc.

     5,210       622,439  

Equitrans Midstream Corp.

     14,346       73,882  

Exxon Mobil Corp.

     66,347       7,851,504  

HF Sinclair Corp.

     3,232       142,564  

Kinder Morgan, Inc.

     44,324       760,157  

Magnolia Oil & Gas Corp., Class A

     5,229       110,436  

ONEOK, Inc.

     8,083       528,709  

Phillips 66

     8,396       831,204  

Pioneer Natural Resources Co.

     11,188       2,433,949  

Valero Energy Corp.

     9,371       1,074,573  

Williams Cos., Inc.

     21,878       662,028  
   

 

 

  
        22,214,258  
Personal Care Products — 0.0%  

Nu Skin Enterprises, Inc., Class A

     1,248       49,246  
   

 

 

  
Pharmaceuticals — 6.0%            

Bristol-Myers Squibb Co.

     57,127       3,814,370  

Johnson & Johnson

     35,262       5,772,389  

Merck & Co., Inc.

     22,645       2,614,818  

Organon & Co.

     4,027       99,185  

Perrigo Co. PLC

     1,236       45,967  

Pfizer, Inc.

     81,486       3,168,991  

Viatris, Inc.

     17,974       167,697  
   

 

 

  
      15,683,417  
Professional Services — 0.2%  

ManpowerGroup, Inc.

     1,469       111,218  

Paychex, Inc.

     3,042       334,194  

Robert Half International, Inc.

     2,024       147,752  

TTEC Holdings, Inc.

     328       11,175  
   

 

 

  
      604,339  
Real Estate Management & Development — 0.0%  

Kennedy-Wilson Holdings, Inc.

     2,973       49,887  
   

 

 

  
Residential REITs — 0.4%  

Apartment Income REIT Corp.

     1,571       58,096  

AvalonBay Communities, Inc.

     1,628       293,642  

Equity LifeStyle Properties, Inc.

     1,026       70,691  

Equity Residential

     4,173       263,942  

Essex Property Trust, Inc.

     946       207,865  

Mid-America Apartment Communities, Inc.

     1,214       186,713  
   

 

 

  
      1,080,949  
Retail REITs — 0.5%  

Brixmor Property Group, Inc.

     3,886       82,888  

Federal Realty Investment Trust

     327       32,337  

Kimco Realty Corp.

     7,743       148,588  

Kite Realty Group Trust

     3,067       63,548  

National Retail Properties, Inc.

     1,913       83,216  

Regency Centers Corp.

     1,943       119,359  

Retail Opportunity Investments Corp.

     613       7,987  

Simon Property Group, Inc.

     5,800       657,256  
   

 

 

  
      1,195,179  
 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   17

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment — 10.2%  

Analog Devices, Inc.

     15,954     $ 2,869,806  

Broadcom, Inc.

     13,036       8,167,054  

Intel Corp.

     163,700       5,084,522  

NXP Semiconductors NV

     12,887       2,110,117  

QUALCOMM, Inc.

     34,413       4,019,438  

Skyworks Solutions, Inc.

     5,383       570,060  

Texas Instruments, Inc.

     21,917       3,664,522  
   

 

 

  
        26,485,519  
Software — 2.6%  

Gen Digital, Inc.

     26,306       464,827  

Oracle Corp.

     66,992       6,345,482  
   

 

 

  
      6,810,309  
Specialized REITs — 1.0%  

American Tower Corp.

     688       140,620  

Crown Castle, Inc.

     6,646       818,056  

Digital Realty Trust, Inc.

     2,635       261,260  

EPR Properties

     2,028       85,095  

Extra Space Storage, Inc.

     1,396       212,248  

Iron Mountain, Inc.

     4,384       242,172  

Lamar Advertising Co., Class A

     1,246       131,677  

Outfront Media, Inc.

     3,338       55,611  

PotlatchDeltic Corp.

     1,186       54,829  

Public Storage

     1,308       385,638  

Rayonier, Inc.

     251       7,871  

Uniti Group, Inc.

     10,542       36,054  

Weyerhaeuser Co.

     9,067       271,194  
   

 

 

  
      2,702,325  
Specialty Retail — 5.1%  

American Eagle Outfitters, Inc.

     3,991       53,439  

Dick’s Sporting Goods, Inc.

     2,677       388,192  

Foot Locker, Inc.

     3,028       127,146  

Gap, Inc.

     6,607       63,427  

Home Depot, Inc.

     21,945       6,595,350  

Lowe’s Cos., Inc.

     27,564       5,728,626  

Penske Automotive Group, Inc.

     589       81,624  

Signet Jewelers Ltd.

     2,179       160,331  
   

 

 

  
      13,198,135  
Technology Hardware, Storage & Peripherals — 0.5%  

Hewlett Packard Enterprise Co.

     43,762       626,672  

NetApp, Inc.

     10,589       665,942  
   

 

 

  
      1,292,614  
Security   Shares     Value  
Textiles, Apparel & Luxury Goods — 0.4%  

Hanesbrands, Inc.

     13,214     $ 69,241  

Kontoor Brands, Inc.

     1,175       53,075  

Ralph Lauren Corp., Class A

     1,663       190,896  

Steven Madden Ltd.

     1,792       62,791  

Tapestry, Inc.

     9,142       373,085  

VF Corp.

     10,819       254,355  
   

 

 

  
      1,003,443  
Tobacco — 2.1%  

Altria Group, Inc.

     58,081       2,759,428  

Philip Morris International, Inc.

     27,109       2,710,087  
   

 

 

  
      5,469,515  
Trading Companies & Distributors — 0.3%  

Air Lease Corp., Class A

     1,239       49,832  

Fastenal Co.

     5,258       283,091  

MSC Industrial Direct Co., Inc., Class A

     813       73,763  

Triton International Ltd.

     2,301       190,224  

Watsco, Inc.

     355       122,965  
   

 

 

  
      719,875  
Water Utilities — 0.0%  

Essential Utilities, Inc.

     944       40,309  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $266,934,343)

 

     259,789,784  
   

 

 

  

Short-Term Securities

 

Money Market Funds — 0.3%  

BlackRock Cash Funds: Treasury, SL Agency Shares,

    

4.75%(a)(b)

    859,810       859,810  
   

 

 

  

Total Short-Term Securities — 0.3%
(Cost: $859,810)

 

     859,810  
   

 

 

  

Total Investments — 100.0%
(Cost: $267,794,153)

 

     260,649,594  

Other Assets Less Liabilities — 0.0%

 

     49,887  
   

 

 

  

Net Assets — 100.0%

 

   $ 260,699,481  
   

 

 

  

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/22 		     Purchases
at Cost 		     Proceeds
from Sale		      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
04/30/23 		     Shares
Held at
04/30/23		      Income     

Capital

Gain
Distributions
from Underlying
Funds

 

BlackRock Cash Funds: Treasury, SL Agency Shares

    $ 490,000      $ 369,810 (a)     $ —      $ —      $ —      $ 859,810        859,810      $ 19,527      $ —  

BlackRock, Inc.

      922,028        960,673        (584,496 )       (67,192 )       91,922        1,322,935        1,971        22,689        —  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  
            $ (67,192 )     $ 91,922      $ 2,182,745         $ 42,216      $ —  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 

 

 

18  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date 		       Notional
Amount
(000)		        Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

Micro E-mini S&P 500 Index

      41          06/16/23        $ 859        $ 17,829  
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts 		     Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

   $ —      $ —      $ 17,829      $ —      $ —      $ —      $ 17,829  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts 		     Credit
Contracts		      Equity
Contracts
      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from

                     

Futures contracts

    $ —      $ —      $ (120,194 )     $ —      $ —      $ —      $ (120,194 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                     

Futures contracts

    $ —      $ —      $ 77,277      $ —      $ —      $ —      $ 77,277  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

         

Average notional value of contracts — long

    $ 806,731  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   19

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 259,789,784        $ —        $             —        $ 259,789,784  

Short-Term Securities

                  

Money Market Funds

      859,810          —          —          859,810  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 260,649,594        $ —        $ —        $ 260,649,594  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                 

Assets

                  

Equity Contracts

    $ 17,829        $             —        $ —        $ 17,829  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

20  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments

April 30, 2023

   

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.2%  

BWX Technologies, Inc.

     71,257     $ 4,601,777  

Curtiss-Wright Corp.

     9,930       1,686,412  

General Dynamics Corp.

     278,326       60,769,699  

HEICO Corp.

     2,572       433,742  

HEICO Corp., Class A

     5,708       766,185  

Huntington Ingalls Industries, Inc.

     52,096       10,505,679  

L3Harris Technologies, Inc.

     228,323       44,557,233  

Lockheed Martin Corp.

     325,668       151,256,503  

Northrop Grumman Corp.

     120,301       55,491,242  

Raytheon Technologies Corp.

     1,852,520       185,066,748  
   

 

 

  
      515,135,220  
Air Freight & Logistics — 1.2%            

CH Robinson Worldwide, Inc.

     156,400       15,776,068  

Expeditors International of Washington, Inc.

     107,513       12,239,280  

Forward Air Corp.

     13,258       1,398,851  

United Parcel Service, Inc., Class B

     1,431,617       257,419,053  
   

 

 

  
           286,833,252  
Automobile Components — 0.0%            

Gentex Corp.

     222,387       6,135,657  
   

 

 

  
Automobiles — 0.0%            

Thor Industries, Inc.

     61,069       4,825,672  
   

 

 

  
Banks — 7.3%            

Associated Banc-Corp.

     326,642       5,824,027  

Atlantic Union Bankshares Corp.

     130,119       3,724,006  

BancFirst Corp.

     18,065       1,443,213  

Bank of America Corp.

     10,524,105       308,145,794  

Bank of Hawaii Corp.

     87,945       4,259,176  

Bank OZK

     208,047       7,431,439  

BOK Financial Corp.

     37,955       3,183,286  

Cadence Bank

     119,539       2,417,079  

Cathay General Bancorp

     140,803       4,487,392  

Citigroup, Inc.

     4,349,621       204,736,660  

Comerica, Inc.

     300,451       13,030,560  

Commerce Bancshares, Inc.

     107,317       5,993,654  

Community Bank System, Inc.

     53,253       2,660,520  

Cullen/Frost Bankers, Inc.

     100,755       11,108,239  

CVB Financial Corp.

     235,800       3,529,926  

East West Bancorp, Inc.

     211,244       10,919,202  

Fifth Third Bancorp

     1,505,434       39,442,371  

First Financial Bankshares, Inc.

     146,152       4,276,408  

First Horizon Corp.

     843,065       14,795,791  

First Merchants Corp.

     111,626       3,257,247  

First Republic Bank(a)

    100,198       351,695  

Fulton Financial Corp.

     350,085       4,176,514  

Glacier Bancorp, Inc.

     187,294       6,223,780  

Heartland Financial U.S.A., Inc.

     56,894       1,852,469  

Hilltop Holdings, Inc.

     57,742       1,791,157  

Home BancShares, Inc.

     339,678       7,394,790  

Independent Bank Corp.

     33,994       1,903,664  

Independent Bank Group, Inc.

     54,152       1,970,050  

JPMorgan Chase & Co.

     4,750,235       656,672,486  

Lakeland Financial Corp.

     38,155       1,933,314  

M&T Bank Corp.

     330,442       41,569,604  

Park National Corp.

     27,354       2,962,985  

PNC Financial Services Group, Inc.

     930,349       121,177,957  

Popular, Inc.

     138,447       8,308,204  

Prosperity Bancshares, Inc.

     160,398       10,044,123  

Regions Financial Corp.

     1,924,324       35,138,156  

ServisFirst Bancshares, Inc.

     44,600       2,252,300  
Security   Shares     Value  
Banks (continued)  

Simmons First National Corp., Class A

     177,423     $ 2,964,738  

SouthState Corp.

     108,882       7,510,680  

Stock Yards Bancorp, Inc.

     34,848       1,693,613  

Synovus Financial Corp.

     292,245       9,001,146  

Towne Bank

     117,817       2,791,085  

U.S. Bancorp

     3,184,123       109,151,736  

UMB Financial Corp.

     46,192       2,938,273  

United Community Banks, Inc.

     154,182       3,839,132  

Washington Federal, Inc.

     116,724       3,272,941  

WesBanco, Inc.

     133,555       3,555,234  

Wintrust Financial Corp.

     65,222       4,459,228  

WSFS Financial Corp.

     31,138       1,095,123  

Zions Bancorp N.A.

     299,363       8,340,253  
   

 

 

  
      1,721,002,420  
Beverages — 3.6%            

Brown-Forman Corp., Class A

     41,610       2,741,267  

Brown-Forman Corp., Class B, NVS

     132,379       8,616,549  

Coca-Cola Co.

     6,365,215       408,328,542  

Constellation Brands, Inc., Class A

     132,430       30,388,712  

PepsiCo, Inc.

     2,042,465       389,886,144  
   

 

 

  
      839,961,214  
Biotechnology — 4.5%            

AbbVie, Inc.

     3,904,372       590,028,697  

Amgen, Inc.

     1,110,319       266,187,877  

Gilead Sciences, Inc.

     2,547,720       209,448,061  
   

 

 

  
        1,065,664,635  
Broadline Retail — 0.0%            

Dillard’s, Inc., Class A

     880       262,583  
   

 

 

  
Building Products — 0.5%            

A O Smith Corp.

     127,005       8,673,172  

AAON, Inc.

     12,255       1,200,990  

Advanced Drainage Systems, Inc.

     20,385       1,747,402  

Allegion PLC

     70,421       7,780,112  

Carlisle Cos., Inc.

     32,865       7,093,910  

Fortune Brands Innovations, Inc.

     108,584       7,024,299  

Lennox International, Inc.

     29,530       8,324,802  

Masco Corp.

     279,915       14,978,252  

Owens Corning

     110,280       11,779,007  

Simpson Manufacturing Co., Inc.

     22,766       2,863,508  

Trane Technologies PLC

     179,557       33,363,486  

UFP Industries, Inc.

     28,345       2,225,649  
   

 

 

  
           107,054,589  
Capital Markets — 6.0%            

Ameriprise Financial, Inc.

     88,262       26,930,501  

Bank of New York Mellon Corp.

     1,217,480       51,852,473  

BlackRock, Inc.(b)

    242,559       162,805,601  

CME Group, Inc., Class A

     1,985,744       368,891,663  

Cohen & Steers, Inc.

     42,888       2,575,853  

Evercore, Inc., Class A

     44,522       5,078,625  

FactSet Research Systems, Inc.

     18,582       7,650,024  

Goldman Sachs Group, Inc.

     540,883       185,760,857  

Hamilton Lane, Inc., Class A

     41,094       3,027,806  

Houlihan Lokey, Inc., Class A

     65,918       6,023,587  

Intercontinental Exchange, Inc.

     460,551       50,167,820  

Jefferies Financial Group, Inc.

     341,754       10,946,381  

MarketAxess Holdings, Inc.

     16,870       5,370,902  

Moody’s Corp.

     92,235       28,880,623  

Morgan Stanley

     2,377,469       213,900,886  

Morningstar, Inc.

     10,137       1,807,528  

MSCI, Inc., Class A

     46,047       22,215,375  

 

 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   21

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Capital Markets (continued)

 

Nasdaq, Inc.

     274,989     $ 15,226,141  

Northern Trust Corp.

     376,491       29,426,537  

Raymond James Financial, Inc.

     170,687       15,452,294  

S&P Global, Inc.

     197,033       71,440,225  

SEI Investments Co.

     82,664       4,869,736  

State Street Corp.

     594,395       42,950,983  

Stifel Financial Corp.

     130,407       7,820,508  

T Rowe Price Group, Inc.

     530,336       59,572,643  
   

 

 

  
        1,400,645,572  
Chemicals — 1.9%            

Air Products & Chemicals, Inc.

     275,995       81,241,888  

Albemarle Corp.

     41,288       7,657,272  

Ashland, Inc.

     37,062       3,765,870  

Avient Corp.

     112,254       4,322,901  

Balchem Corp.

     11,314       1,486,660  

Cabot Corp.

     58,706       4,212,743  

Celanese Corp., Class A

     132,382       14,064,264  

Eastman Chemical Co.

     250,888       21,142,332  

Ecolab, Inc.

     183,850       30,857,384  

HB Fuller Co.

     33,815       2,237,539  

Innospec, Inc.

     16,914       1,718,970  

International Flavors & Fragrances, Inc.

     522,479       50,659,564  

Linde PLC

     363,724       134,377,832  

NewMarket Corp.

     9,150       3,656,340  

PPG Industries, Inc.

     248,337       34,831,748  

Quaker Chemical Corp.

     8,396       1,566,945  

RPM International, Inc.

     137,062       11,243,196  

Sensient Technologies Corp.

     52,588       3,915,702  

Sherwin-Williams Co.

     144,988       34,440,449  

Stepan Co.

     18,052       1,664,394  

Westlake Corp.

     23,188       2,638,331  
   

 

 

  
           451,702,324  
Commercial Services & Supplies — 0.5%            

ABM Industries, Inc.

     68,263       2,906,638  

Brady Corp., Class A, NVS

     43,794       2,234,808  

Cintas Corp.

     50,874       23,186,843  

MSA Safety, Inc.

     29,559       3,835,280  

Republic Services, Inc.

     177,659       25,693,045  

Tetra Tech, Inc.

     20,263       2,803,791  

Waste Management, Inc.

     360,853       59,919,641  
   

 

 

  
      120,580,046  
Communications Equipment — 1.6%            

Cisco Systems, Inc.

     7,090,083       335,006,422  

Motorola Solutions, Inc.

     122,969       35,833,166  
   

 

 

  
      370,839,588  
Construction & Engineering — 0.1%            

Comfort Systems U.S.A., Inc.

     8,056       1,204,291  

MDU Resources Group, Inc.

     331,894       9,697,943  
   

 

 

  
      10,902,234  
Construction Materials — 0.1%            

Martin Marietta Materials, Inc.

     25,212       9,156,999  

Vulcan Materials Co.

     67,393       11,801,862  
   

 

 

  
      20,958,861  
Consumer Finance — 0.5%            

American Express Co.

     396,113       63,908,871  

Discover Financial Services

     331,451       34,295,235  

FirstCash Holdings, Inc.

     34,655       3,570,505  

Nelnet, Inc., Class A

     11,351       1,093,101  

Synchrony Financial

     672,041       19,831,930  
   

 

 

  
      122,699,642  
Security   Shares     Value  

Consumer Staples Distribution & Retail — 2.2%

 

Casey’s General Stores, Inc.

     14,568     $ 3,333,450  

Costco Wholesale Corp.

     182,994       92,086,241  

Dollar General Corp.

     127,454       28,225,963  

Kroger Co.

     798,152       38,814,132  

Sysco Corp.

     739,193       56,725,671  

Target Corp.

     678,514       107,035,583  

Walmart, Inc.

     1,277,228       192,823,111  
   

 

 

  
      519,044,151  
Containers & Packaging — 0.2%            

AptarGroup, Inc.

     48,107       5,701,160  

Avery Dennison Corp.

     76,220       13,298,866  

Ball Corp.

     252,931       13,450,871  

Silgan Holdings, Inc.

     59,258       2,919,049  

Sonoco Products Co.

     183,265       11,109,524  
   

 

 

  
      46,479,470  
Distributors — 0.2%            

Genuine Parts Co.

     167,214       28,143,788  

Pool Corp.

     24,480       8,600,314  
   

 

 

  
      36,744,102  
Diversified Consumer Services — 0.1%            

Graham Holdings Co., Class B

     2,273       1,308,271  

H&R Block, Inc.

     271,249       9,198,054  

Service Corp. International

     140,708       9,876,294  
   

 

 

  
      20,382,619  
Electric Utilities — 4.3%            

ALLETE, Inc.

     140,707       8,777,303  

Alliant Energy Corp.

     492,546       27,158,986  

American Electric Power Co., Inc.

     1,066,174       98,535,801  

Duke Energy Corp.

     1,824,330       180,389,750  

Edison International

     918,790       67,622,944  

Entergy Corp.

     467,289       50,270,951  

Evergy, Inc.

     534,666       33,208,105  

Eversource Energy

     660,087       51,229,352  

IDACORP, Inc.

     89,347       9,928,239  

MGE Energy, Inc.

     46,350       3,550,874  

NextEra Energy, Inc.

     2,792,162       213,963,374  

Otter Tail Corp.

     56,920       4,095,394  

PNM Resources, Inc.

     146,808       7,065,869  

Portland General Electric Co.

     191,394       9,688,364  

Southern Co.

     2,552,247       187,717,767  

Xcel Energy, Inc.

     922,911       64,520,708  
   

 

 

  
        1,017,723,781  
Electrical Equipment — 0.8%            

AMETEK, Inc.

     79,955       11,028,193  

Eaton Corp. PLC

     406,216       67,886,818  

Emerson Electric Co.

     802,447       66,811,737  

Hubbell, Inc.

     53,568       14,426,934  

nVent Electric PLC

     141,389       5,928,441  

Regal Rexnord Corp.

     32,497       4,229,810  

Rockwell Automation, Inc.

     100,240       28,409,018  
   

 

 

  
      198,720,951  
Electronic Equipment, Instruments & Components — 0.6%  

Amphenol Corp., Class A

     351,089       26,496,687  

Avnet, Inc.

     132,216       5,455,232  

Badger Meter, Inc.

     12,377       1,637,848  

CDW Corp.

     89,313       15,146,592  

Cognex Corp.

     55,653       2,654,092  

Corning, Inc.

     1,380,427       45,857,785  

Littelfuse, Inc.

     12,394       3,002,322  

National Instruments Corp.

     161,070       9,379,106  

 

 

 

 

22  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

TD SYNNEX Corp.

     35,216     $ 3,135,633  

TE Connectivity Ltd.

     306,181       37,467,369  
   

 

 

  
      150,232,666  
Financial Services — 1.6%            

Equitable Holdings, Inc.

     505,114       13,127,913  

Fidelity National Information Services, Inc.

     987,477       57,984,649  

Jack Henry & Associates, Inc.

     48,759       7,964,295  

Mastercard, Inc., Class A

     300,790       114,309,224  

Visa, Inc., Class A

     738,976       171,981,885  

Walker & Dunlop, Inc.

     47,543       3,200,119  
   

 

 

  
      368,568,085  
Food Products — 1.7%  

Archer-Daniels-Midland Co.

     691,753       54,012,074  

Flowers Foods, Inc.

     347,571       9,561,678  

Hershey Co.

     142,484       38,906,681  

Hormel Foods Corp.

     442,498       17,894,619  

Ingredion, Inc.

     106,366       11,292,878  

J & J Snack Foods Corp.

     17,170       2,630,444  

J M Smucker Co.

     160,907       24,845,650  

Kellogg Co.

     521,800       36,405,986  

Lamb Weston Holdings, Inc.

     89,780       10,038,302  

Lancaster Colony Corp.

     19,948       4,171,526  

McCormick & Co., Inc., NVS

     300,441       26,393,742  

Mondelez International, Inc., Class A

     1,802,593       138,294,935  

Tyson Foods, Inc., Class A

     531,316       33,201,937  
   

 

 

  
           407,650,452  
Gas Utilities — 0.4%  

Atmos Energy Corp.

     206,931       23,619,104  

National Fuel Gas Co.

     171,247       9,572,707  

New Jersey Resources Corp.

     163,637       8,450,215  

ONE Gas, Inc.

     101,344       7,798,421  

Southwest Gas Holdings, Inc.

     140,272       7,855,232  

Spire, Inc.

     125,295       8,486,230  

UGI Corp.

     460,652       15,606,890  
   

 

 

  
      81,388,799  
Ground Transportation — 1.3%  

CSX Corp.

     1,701,643       52,138,342  

JB Hunt Transport Services, Inc.

     44,008       7,714,162  

Landstar System, Inc.

     15,040       2,647,491  

Norfolk Southern Corp.

     321,898       65,354,951  

Old Dominion Freight Line, Inc.

     23,225       7,441,058  

Ryder System, Inc.

     72,766       5,760,157  

Schneider National, Inc., Class B

     33,543       877,820  

Union Pacific Corp.

     876,160       171,464,512  

Werner Enterprises, Inc.

     36,276       1,638,587  
   

 

 

  
      315,037,080  
Health Care Equipment & Supplies — 2.8%  

Abbott Laboratories

     1,996,391       220,541,314  

Baxter International, Inc.

     828,891       39,521,523  

Becton Dickinson & Co.

     245,792       64,965,284  

DENTSPLY SIRONA, Inc.

     158,298       6,637,435  

Medtronic PLC

     2,572,709       233,987,884  

ResMed, Inc.

     68,022       16,390,581  

STERIS PLC

     60,062       11,324,690  

Stryker Corp.

     211,890       63,492,838  
   

 

 

  
      656,861,549  
Health Care Providers & Services — 2.5%  

AmerisourceBergen Corp.

     115,649       19,296,036  

Cardinal Health, Inc.

     397,932       32,670,217  

Chemed Corp.

     2,478       1,365,998  
Security   Shares     Value  
Health Care Providers & Services (continued)  

Elevance Health, Inc.

     145,937     $ 68,393,375  

Encompass Health Corp.

     61,480       3,943,942  

Ensign Group, Inc.

     8,678       842,547  

HCA Healthcare, Inc.

     105,619       30,347,507  

Humana, Inc.

     45,560       24,169,124  

McKesson Corp.

     50,629       18,441,107  

Quest Diagnostics, Inc.

     122,939       17,065,163  

UnitedHealth Group, Inc.

     731,078       359,756,173  
   

 

 

  
      576,291,189  
Hotels, Restaurants & Leisure — 2.1%  

Domino’s Pizza, Inc.

     27,897       8,856,461  

McDonald’s Corp.

     936,364       276,929,653  

Starbucks Corp.

     1,324,585       151,386,820  

Texas Roadhouse, Inc.

     65,928       7,292,955  

Wingstop, Inc.

     7,438       1,488,418  

Yum! Brands, Inc.

     299,480       42,100,898  
   

 

 

  
      488,055,205  
Household Durables — 0.2%  

DR Horton, Inc.

     186,570       20,489,117  

Garmin Ltd.

     255,057       25,038,946  
   

 

 

  
      45,528,063  
Household Products — 3.3%  

Church & Dwight Co., Inc.

     177,655       17,253,854  

Colgate-Palmolive Co.

     1,217,947       97,192,170  

Kimberly-Clark Corp.

     705,977       102,289,007  

Procter & Gamble Co.

     3,510,534       548,977,307  

WD-40 Co.

     15,287       2,910,645  
   

 

 

  
           768,622,983  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp.

     1,002,429       23,717,470  
   

 

 

  
Industrial Conglomerates — 0.7%            

Honeywell International, Inc.

     790,188       157,911,170  
   

 

 

  
Insurance — 2.9%            

Aflac, Inc.

     800,631       55,924,075  

Allstate Corp.

     429,452       49,713,364  

American Equity Investment Life Holding Co.

     34,116       1,314,831  

American Financial Group, Inc.

     77,749       9,542,135  

Aon PLC, Class A

     86,130       28,007,753  

Arthur J. Gallagher & Co.

     127,230       26,471,474  

Assurant, Inc.

     61,757       7,604,139  

Assured Guaranty Ltd.

     61,035       3,287,955  

Axis Capital Holdings Ltd.

     130,963       7,404,648  

Brown & Brown, Inc.

     105,890       6,818,257  

Chubb Ltd.

     378,382       76,266,676  

Cincinnati Financial Corp.

     207,302       22,065,225  

CNA Financial Corp.

     61,611       2,397,284  

CNO Financial Group, Inc.

     144,453       3,241,525  

Erie Indemnity Co., Class A, NVS

     28,221       6,133,270  

Everest Re Group Ltd.

     37,821       14,296,338  

First American Financial Corp.

     223,084       12,851,869  

Globe Life, Inc.

     36,944       4,009,163  

Hanover Insurance Group, Inc.

     48,184       5,760,879  

Hartford Financial Services Group, Inc.

     410,429       29,136,355  

Kinsale Capital Group, Inc.

     2,934       958,567  

Marsh & McLennan Cos., Inc.

     402,998       72,616,210  

MetLife, Inc.

     1,087,634       66,704,593  

Old Republic International Corp.

     576,921       14,578,794  

Primerica, Inc.

     30,175       5,507,239  

Principal Financial Group, Inc.

     389,831       29,116,477  

Reinsurance Group of America, Inc.

     84,000       11,954,880  

 

 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   23

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)            

RenaissanceRe Holdings Ltd.

     17,141     $ 3,692,343  

RLI Corp.

     19,253       2,677,130  

Selective Insurance Group, Inc.

     41,346       3,982,860  

Travelers Cos., Inc.

     272,978       49,447,235  

Unum Group

     313,630       13,235,186  

W. R. Berkley Corp.

     70,336       4,144,197  

Willis Towers Watson PLC

     83,015       19,226,274  
   

 

 

  
      670,089,200  
IT Services — 0.7%  

Accenture PLC, Class A

     597,289            167,414,134  
   

 

 

  
Leisure Products — 0.1%            

Acushnet Holdings Corp.

     25,539       1,280,270  

Brunswick Corp.

     73,372       6,221,212  

Polaris, Inc.

     66,726       7,249,780  
   

 

 

  
      14,751,262  
Life Sciences Tools & Services — 0.3%  

Agilent Technologies, Inc.

     105,726       14,318,472  

Danaher Corp.

     147,831       35,022,642  

Thermo Fisher Scientific, Inc.

     47,432       26,320,017  

West Pharmaceutical Services, Inc.

     9,840       3,554,602  
   

 

 

  
      79,215,733  
Machinery — 2.2%  

AGCO Corp.

     25,738       3,189,968  

Caterpillar, Inc.

     559,368       122,389,718  

Cummins, Inc.

     192,172       45,168,107  

Donaldson Co., Inc.

     95,440       6,065,212  

Dover Corp.

     103,960       15,194,794  

EnPro Industries, Inc.

     14,281       1,346,270  

Franklin Electric Co., Inc.

     22,708       2,031,685  

Graco, Inc.

     126,726       10,048,104  

Hillenbrand, Inc.

     73,465       3,351,473  

IDEX Corp.

     45,045       9,293,684  

Illinois Tool Works, Inc.

     344,049       83,239,215  

Ingersoll Rand, Inc.

     35,683       2,034,645  

ITT, Inc.

     53,257       4,497,021  

Kadant, Inc.

     3,142       583,878  

Lincoln Electric Holdings, Inc.

     48,123       8,075,039  

Nordson Corp.

     35,869       7,758,823  

Oshkosh Corp.

     67,980       5,201,830  

Otis Worldwide Corp.

     316,567       27,003,165  

PACCAR, Inc.

     383,908       28,674,088  

Parker-Hannifin Corp.

     105,312       34,213,763  

Pentair PLC

     145,098       8,427,292  

Snap-on, Inc.

     77,947       20,220,231  

Stanley Black & Decker, Inc.

     314,886       27,187,257  

Terex Corp.

     33,134       1,477,445  

Timken Co.

     51,982       3,994,817  

Toro Co.

     69,938       7,291,736  

Trinity Industries, Inc.

     180,037       4,311,886  

Watts Water Technologies, Inc., Class A

     10,435       1,687,653  

Xylem, Inc.

     130,684       13,570,227  
   

 

 

  
      507,529,026  
Marine Transportation — 0.0%  

Matson, Inc.

     40,258       2,738,752  
   

 

 

  
Media — 1.6%            

Cable One, Inc.

     4,730       3,587,279  

Comcast Corp., Class A

     7,240,476       299,538,492  

Interpublic Group of Cos., Inc.

     770,630       27,534,610  

John Wiley & Sons, Inc., Class A

     76,696       2,958,165  

Nexstar Media Group, Inc., Class A

     66,265       11,493,664  
Security   Shares      Value  
Media (continued)             

Omnicom Group, Inc.

     354,434      $ 32,101,087  

Sirius XM Holdings, Inc.

     981,538        3,729,845  
    

 

 

  
       380,943,142  
Metals & Mining — 0.3%             

Nucor Corp.

     168,844        25,019,304  

Reliance Steel & Aluminum Co.

     44,234        10,961,185  

Royal Gold, Inc.

     49,872        6,605,048  

Southern Copper Corp.

     256,794        19,729,483  

Steel Dynamics, Inc.

     95,638        9,941,570  

Worthington Industries, Inc.

     34,790        2,066,178  
    

 

 

  
       74,322,768  
Multi-Utilities — 1.8%             

Ameren Corp.

     408,674        36,359,726  

Black Hills Corp.

     148,255        9,679,569  

CMS Energy Corp.

     529,483        32,965,612  

Consolidated Edison, Inc.

     698,405        68,771,940  

DTE Energy Co.

     384,468        43,218,048  

NiSource, Inc.

     817,871        23,276,609  

Public Service Enterprise Group, Inc.

     1,016,871        64,266,247  

Sempra Energy

     540,805        84,089,769  

WEC Energy Group, Inc.

     616,448        59,283,804  
    

 

 

  
       421,911,324  
Oil, Gas & Consumable Fuels — 7.2%  

Chevron Corp.

     3,677,911        620,022,237  

ConocoPhillips

     1,322,570        136,079,227  

EOG Resources, Inc.

     917,892        109,660,557  

Exxon Mobil Corp.

     6,081,100        719,637,374  

Phillips 66

     1,115,168        110,401,632  

Texas Pacific Land Corp.

     2,337        3,453,268  
    

 

 

  
       1,699,254,295  
Paper & Forest Products — 0.0%             

Louisiana-Pacific Corp.

     61,936        3,700,057  
    

 

 

  
Personal Care Products — 0.2%             

Estee Lauder Cos., Inc., Class A

     137,362        33,889,953  

Inter Parfums, Inc.

     14,672        2,227,063  

Nu Skin Enterprises, Inc., Class A

     110,785        4,371,576  
    

 

 

  
       40,488,592  
Pharmaceuticals — 9.4%             

Bristol-Myers Squibb Co.

     4,019,222        268,363,453  

Eli Lilly & Co.

     636,319        251,893,239  

Johnson & Johnson

     4,310,313        705,598,238  

Merck & Co., Inc.

     3,814,537        440,464,588  

Perrigo Co. PLC

     211,222        7,855,346  

Pfizer, Inc.

     12,801,600        497,854,224  

Zoetis, Inc., Class A

     231,758        40,738,421  
    

 

 

  
         2,212,767,509  
Professional Services — 0.8%             

Automatic Data Processing, Inc.

     520,444        114,497,680  

Booz Allen Hamilton Holding Corp., Class A

     150,213        14,378,388  

Broadridge Financial Solutions, Inc.

     133,937        19,475,779  

CSG Systems International, Inc.

     34,606        1,823,044  

Exponent, Inc.

     28,294        2,604,463  

Genpact Ltd.

     100,673        4,484,982  

Insperity, Inc.

     33,636        4,119,065  

ManpowerGroup, Inc.

     91,210        6,905,509  

Robert Half International, Inc.

     144,017        10,513,241  

SS&C Technologies Holdings, Inc.

     167,526        9,806,972  

TTEC Holdings, Inc.

     27,327        931,031  
    

 

 

  
       189,540,154  
 

 

 

24  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment — 5.0%  

Analog Devices, Inc.

     529,268     $ 95,204,728  

Applied Materials, Inc.

     419,907       47,462,088  

Broadcom, Inc.

     657,581       411,974,496  

KLA Corp.

     105,821       40,904,049  

Lam Research Corp.

     106,608       55,871,121  

Microchip Technology, Inc.

     518,534       37,847,797  

Monolithic Power Systems, Inc.

     14,805       6,839,466  

NXP Semiconductors NV

     267,290       43,766,065  

Power Integrations, Inc.

     32,504       2,365,641  

QUALCOMM, Inc.

     1,548,047       180,811,889  

Skyworks Solutions, Inc.

     193,904       20,534,434  

Texas Instruments, Inc.

     1,425,182       238,290,430  

Universal Display Corp.

     20,654       2,756,483  
   

 

 

  
      1,184,628,687  
Software — 4.3%  

Dolby Laboratories, Inc., Class A

     44,945       3,761,447  

Intuit, Inc.

     117,550       52,186,322  

Microsoft Corp.

     2,698,519       829,146,948  

Oracle Corp.

     1,240,254       117,476,859  

Roper Technologies, Inc.

     38,132       17,341,671  
   

 

 

  
        1,019,913,247  
Specialty Retail — 3.0%  

Best Buy Co., Inc.

     485,864       36,206,585  

Dick’s Sporting Goods, Inc.

     40,494       5,872,035  

Group 1 Automotive, Inc.

     6,454       1,448,794  

Home Depot, Inc.

     1,489,141       447,546,436  

Lithia Motors, Inc., Class A

     9,753       2,154,340  

Lowe’s Cos., Inc.

     723,099       150,281,665  

Penske Automotive Group, Inc.

     23,358       3,236,952  

Ross Stores, Inc.

     220,025       23,483,268  

Tractor Supply Co.

     111,372       26,551,085  

Valvoline, Inc.

     139,110       4,806,251  

Williams-Sonoma, Inc.

     93,926       11,368,803  
   

 

 

  
      712,956,214  
Technology Hardware, Storage & Peripherals — 3.6%  

Apple Inc.

     4,350,813       738,245,950  

Hewlett Packard Enterprise Co.

     2,278,072       32,621,991  

HP, Inc.

     1,838,075       54,609,208  

NetApp, Inc.

     374,693       23,564,443  
   

 

 

  
      849,041,592  
Textiles, Apparel & Luxury Goods — 0.5%  

Carter’s, Inc.

     87,389       6,097,131  

Columbia Sportswear Co.

     28,336       2,367,189  

NIKE, Inc., Class B

     797,696       101,084,037  

Steven Madden Ltd.

     96,377       3,377,050  
   

 

 

  
      112,925,407  
Security   Shares     Value  
Trading Companies & Distributors — 0.5%  

Air Lease Corp., Class A

     117,724     $ 4,734,859  

Applied Industrial Technologies, Inc.

     21,194       2,875,178  

Boise Cascade Co.

     19,297       1,318,178  

Fastenal Co.

     842,844       45,378,721  

GATX Corp.

     39,524       4,502,179  

McGrath RentCorp

     26,750       2,377,540  

MSC Industrial Direct Co., Inc., Class A

     97,747       8,868,585  

Rush Enterprises, Inc., Class A

     39,635       2,105,015  

Rush Enterprises, Inc., Class B

     6,480       379,598  

Watsco, Inc.

     59,425       20,583,632  

WW Grainger, Inc.

     24,686       17,170,841  
   

 

 

  
      110,294,326  
Water Utilities — 0.2%  

American States Water Co.

     38,072       3,378,890  

American Water Works Co., Inc.

     192,648       28,560,066  

California Water Service Group

     59,798       3,353,472  

Essential Utilities, Inc.

     360,944       15,412,309  

SJW Group

     31,304       2,376,599  
   

 

 

  
      53,081,336  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $20,350,435,803)

 

     23,431,670,051  
   

 

 

  

Short-Term Securities

 

  
Money Market Funds — 0.2%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.02%(b)(c)(d)

    644,581       644,774  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(b)(c)

    46,636,422       46,636,422  
   

 

 

  

Total Short-Term Securities — 0.2%
(Cost: $47,281,196)

 

     47,281,196  
   

 

 

  

Total Investments — 99.9%
(Cost: $20,397,716,999)

 

     23,478,951,247  

Other Assets Less Liabilities — 0.1%

       32,251,788  
   

 

 

  
Net Assets — 100.0%         $  23,511,203,035  
   

 

 

  

 

(a) 

All or a portion of this security is on loan.

(b)

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

(d) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   25

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend Growth ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

       Affiliated Issuer   Value at
04/30/22 		    Purchases
at Cost 		    Proceeds
from Sale 		    Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
04/30/23 		    Shares
Held at
04/30/23 		    Income     Capital
Gain
Distributions
from Underlying
Funds		           
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ —     $ 618,622 (a)     $ —     $ 26,152     $ —     $ 644,774       644,581     $ 347,885 (b)    $ —    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

     48,180,000       —       (1,543,578 )(a)      —       —       46,636,422       46,636,422       1,570,355       39    
 

BlackRock, Inc.

     146,773,563       56,094,714       (55,958,243 )      943,676       14,951,891       162,805,601       242,559       4,034,692       —    
         

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    
          $ 969,828     $ 14,951,891     $   210,086,797       $   5,952,932     $ 39    
         

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts 		       Expiration
Date 		       Notional
Amount
(000) 		       Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

S&P 500 E-Mini Index

      367          06/16/23        $     76,859        $ 4,611,360  
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

  
     Commodity
Contracts 		     Credit
Contracts		      Equity
Contracts 		     Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

 

  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

   $ —      $ —      $ 4,611,360      $ —      $ —      $ —      $ 4,611,360  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

  
     Commodity
Contracts 		     Credit
Contracts		      Equity
Contracts 		    Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

 

  

Net Realized Gain (Loss) from

                    

Futures contracts

    $ —      $ —      $   (7,825,050 )    $ —      $ —      $ —      $   (7,825,050 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

    $ —      $ —      $ 6,667,797     $ —      $ —      $ —      $ 6,667,797  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

 

26  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core Dividend Growth ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

 

 

  

Futures contracts

   

Average notional value of contracts — long

    $ 78,356,019  

 

  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
     Level 1          Level 2          Level 3          Total  

 

  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 23,431,670,051        $ —        $ —        $ 23,431,670,051  

Short-Term Securities

                  

Money Market Funds

      47,281,196          —          —          47,281,196  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $   23,478,951,247        $                 —        $                 —        $   23,478,951,247  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                 

Assets

                  

Equity Contracts

    $ 4,611,360        $ —        $ —        $ 4,611,360  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   27

Schedule of Investments

April 30, 2023

   

iShares® Core High Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Air Freight & Logistics — 2.5%            

United Parcel Service, Inc., Class B

     1,562,288     $ 280,915,005  
   

 

 

  
Banks — 1.7%            

Huntington Bancshares, Inc.

     3,775,270       42,283,024  

Prosperity Bancshares, Inc.

     175,028       10,960,253  

Truist Financial Corp.

     3,838,630       125,062,565  

United Bankshares, Inc.

     311,967       10,335,467  
   

 

 

  
      188,641,309  
Beverages — 4.0%            

Coca-Cola Co.

     6,946,194       445,598,345  
   

 

 

  
Biotechnology — 10.4%            

AbbVie, Inc.

     4,260,747       643,884,087  

Amgen, Inc.

     1,211,658       290,482,889  

Gilead Sciences, Inc.

     2,780,262       228,565,339  
   

 

 

  
        1,162,932,315  
Capital Markets — 2.4%            

Artisan Partners Asset Management, Inc., Class A

     286,397       9,929,384  

Blackstone, Inc., Class A, NVS

     1,699,533       151,819,283  

Cohen & Steers, Inc.

     46,933       2,818,796  

Franklin Resources, Inc.

     725,887       19,511,843  

Janus Henderson Group PLC

     468,643       12,161,286  

Moelis & Co., Class A

     224,388       8,499,817  

T Rowe Price Group, Inc.

     580,292       65,184,200  
   

 

 

  
      269,924,609  
Chemicals — 1.0%            

Dow, Inc.

     2,132,442       116,004,845  
   

 

 

  
Communications Equipment — 3.3%            

Cisco Systems, Inc.

     7,737,213       365,583,314  
   

 

 

  
Containers & Packaging — 0.5%            

Amcor PLC

     4,059,566       44,533,439  

Sonoco Products Co.

     199,822       12,113,210  
   

 

 

  
      56,646,649  
Diversified Telecommunication Services — 6.3%  

Cogent Communications Holdings, Inc.

     152,844       10,552,350  

Verizon Communications, Inc.

     17,782,282       690,486,010  
   

 

 

  
      701,038,360  
Electric Utilities — 6.3%            

ALLETE, Inc.

     153,434       9,571,213  

Alliant Energy Corp.

     538,244       29,678,774  

American Electric Power Co., Inc.

     1,163,135       107,496,937  

Duke Energy Corp.

     1,990,835       196,853,765  

Evergy, Inc.

     583,430       36,236,837  

IDACORP, Inc.

     95,780       10,643,074  

Pinnacle West Capital Corp.

     309,353       24,271,836  

PNM Resources, Inc.

     156,513       7,532,971  

Southern Co.

     2,785,197       204,851,239  

Xcel Energy, Inc.

     1,009,389       70,566,385  
   

 

 

  
      697,703,031  
Financial Services — 0.3%            

MGIC Investment Corp.

     534,579       7,949,190  

Radian Group, Inc.

     386,824       9,388,218  

Western Union Co.

     1,493,415       16,323,026  
   

 

 

  
      33,660,434  
Food Products — 0.6%            

Campbell Soup Co.

     341,098       18,521,622  
Security   Shares     Value  
Food Products (continued)            

Flowers Foods, Inc.

     377,765     $ 10,392,315  

Kellogg Co.

     569,065       39,703,665  
   

 

 

  
      68,617,602  
Gas Utilities — 0.2%            

National Fuel Gas Co.

     183,650       10,266,035  

New Jersey Resources Corp.

     178,050       9,194,502  
   

 

 

  
      19,460,537  
Health Care Equipment & Supplies — 2.3%  

Medtronic PLC

     2,807,521       255,344,035  
   

 

 

  
Hotels, Restaurants & Leisure — 0.3%            

Darden Restaurants, Inc.

     247,849       37,655,699  
   

 

 

  
Household Durables — 0.3%            

Garmin Ltd.

     278,861       27,375,784  
   

 

 

  
Household Products — 1.4%            

Clorox Co.

     234,843       38,894,698  

Kimberly-Clark Corp.

     770,115       111,581,962  

Reynolds Consumer Products, Inc.

     113,820       3,190,375  
   

 

 

  
      153,667,035  
Insurance — 0.2%            

Axis Capital Holdings Ltd.

     143,380       8,106,705  

CNA Financial Corp.

     68,122       2,650,627  

Old Republic International Corp.

     630,004       15,920,201  
   

 

 

  
      26,677,533  
IT Services — 3.2%            

International Business Machines Corp.

     2,837,190       358,649,188  
   

 

 

  
Media — 2.9%            

Comcast Corp., Class A

     7,901,344       326,878,601  
   

 

 

  
Metals & Mining — 0.2%            

Southern Copper Corp.

     276,743       21,262,165  
   

 

 

  
Multi-Utilities — 2.5%            

DTE Energy Co.

     418,937       47,092,708  

Public Service Enterprise Group, Inc.

     1,112,159       70,288,449  

Sempra Energy

     589,756       91,701,160  

WEC Energy Group, Inc.

     671,970       64,623,355  
   

 

 

  
      273,705,672  
Oil, Gas & Consumable Fuels — 25.8%            

Antero Midstream Corp.

     1,771,269       19,058,854  

Chevron Corp.

     4,013,604       676,613,362  

Coterra Energy, Inc.

     5,191,699       132,907,494  

Diamondback Energy, Inc.

     679,812       96,669,266  

DT Midstream, Inc.

     297,406       14,653,194  

EOG Resources, Inc.

     1,001,565       119,656,971  

Exxon Mobil Corp.

     8,298,508       982,045,437  

Kinder Morgan, Inc.

     7,717,903       132,362,037  

ONEOK, Inc.

     1,549,400       101,346,254  

Phillips 66

     1,216,956       120,478,644  

Pioneer Natural Resources Co.

     1,617,056       351,790,533  

Williams Cos., Inc.

     4,150,940       125,607,444  
   

 

 

  
      2,873,189,490  
Pharmaceuticals — 14.4%            

Bristol-Myers Squibb Co.

     4,386,069       292,857,827  

Johnson & Johnson

     4,703,723       769,999,455  

Pfizer, Inc.

     13,970,036       543,294,700  
   

 

 

  
        1,606,151,982  
 

 

 

28  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core High Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment — 6.4%  

Broadcom, Inc.

     717,598     $ 449,575,147  

Texas Instruments, Inc.

     1,555,259       260,039,305  
   

 

 

  
      709,614,452  
Trading Companies & Distributors — 0.3%  

MSC Industrial Direct Co., Inc., Class A

     106,637       9,675,175  

Watsco, Inc.

     64,760       22,431,569  
   

 

 

  
      32,106,744  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $10,878,378,036)

       11,109,004,735  
   

 

 

  

Short-Term Securities

 

Money Market Funds — 0.2%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(a)(b)

    22,682,184       22,682,184  
   

 

 

  

Total Short-Term Securities — 0.2%
(Cost: $22,682,184)

 

     22,682,184  
   

 

 

  

Total Investments — 99.9%
(Cost: $10,901,060,220)

 

     11,131,686,919  

Other Assets Less Liabilities — 0.1%

       5,977,866  
   

 

 

  
Net Assets — 100.0%         $  11,137,664,785  
   

 

 

  

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/22 		     Purchases
at Cost 		     Proceeds
from Sale		      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
04/30/23 		     Shares
Held at
04/30/23 		     Income      Capital
Gain
Distributions
from Underlying
Funds 		 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

   $ —      $ —      $ (22,951 )(b)     $ 22,951      $ —      $ —        —      $ 210,968 (c)     $ —  

BlackRock Cash Funds: Treasury, SL Agency Shares

      14,010,000        8,672,184 (b)       —        —        —        22,682,184        22,682,184        595,499        11  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  
            $ 22,951      $ —      $   22,682,184         $   806,467      $ 11  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   29

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core High Dividend ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date 		       Notional
Amount
(000) 		       Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

E-Mini Consumer Staples Index

      118          06/16/23        $ 9,234        $ 631,763  

E-mini Dow Jones Industrial Average Index

      67          06/16/23          11,457          568,214  

E-mini Energy Select Sector Index

      77          06/16/23          6,891          585,750  
                 

 

 

  
                  $ 1,785,727  
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

  
     Commodity
Contracts 		       Credit
Contracts		        Equity
Contracts 		       Foreign
Currency
Exchange
Contracts		        Interest
Rate
Contracts		        Other
Contracts		        Total  

 

  

Assets — Derivative Financial Instruments

                                 

Futures contracts

                                 

Unrealized appreciation on futures contracts(a)

   $ —        $ —        $   1,785,727        $ —        $ —        $ —        $   1,785,727  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

  
     Commodity
Contracts 		       Credit
Contracts		        Equity
Contracts 		       Foreign
Currency
Exchange
Contracts		        Interest
Rate
Contracts		        Other
Contracts		        Total  

 

  

Net Realized Gain (Loss) from

                                 

Futures contracts

    $ —        $ —        $ (1,373,736 )       $ —        $ —        $ —        $ (1,373,736 ) 
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

 

                              

Futures contracts

    $ —        $ —        $   1,405,406        $ —        $ —        $ —        $   1,405,406  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

         

Average notional value of contracts — long

    $ 29,818,559  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

30  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Core High Dividend ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
     Level 1        Level 2        Level 3        Total  

 

  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 11,109,004,735        $ —        $ —        $ 11,109,004,735  

Short-Term Securities

                  

Money Market Funds

      22,682,184          —          —          22,682,184  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $   11,131,686,919        $ —        $ —        $   11,131,686,919  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                 

Assets

                  

Equity Contracts

    $ 1,785,727        $             —        $             —        $ 1,785,727  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)    Derivative

financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   31

Schedule of Investments

April 30, 2023

   

iShares® Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

    
Aerospace & Defense — 0.8%  

Lockheed Martin Corp.

     355,314     $ 165,025,587  
   

 

 

  
Automobiles — 1.4%  

Ford Motor Co.

     25,787,111       306,350,879  
   

 

 

  
Banks — 10.5%  

Citizens Financial Group, Inc.

     7,113,533       220,092,711  

Comerica, Inc.

     3,506,206       152,064,154  

Fifth Third Bancorp

     7,255,041       190,082,074  

First Horizon Corp.

     7,639,443       134,072,225  

FNB Corp.

     9,549,410       109,627,227  

Huntington Bancshares, Inc.

     18,871,183       211,357,250  

KeyCorp

     17,439,596       196,369,851  

New York Community Bancorp, Inc., Class A

     18,517,276       197,949,680  

Regions Financial Corp.

     10,615,389       193,837,003  

Truist Financial Corp.

     6,815,296       222,042,344  

U.S. Bancorp

     5,954,255       204,111,861  

United Bankshares, Inc.

     3,630,906       120,291,916  

Valley National Bancorp

     11,476,996       107,654,222  
   

 

 

  
        2,259,552,518  
Beverages — 1.0%  

Coca-Cola Co.

     3,467,534       222,442,306  
   

 

 

  
Biotechnology — 1.2%  

Gilead Sciences, Inc.

     3,127,683       257,126,819  
   

 

 

  
Broadline Retail — 0.3%  

Kohl’s Corp.

     3,062,791       67,473,286  
   

 

 

  
Capital Markets — 4.5%  

Federated Hermes, Inc., Class B

     2,144,386       88,756,136  

Franklin Resources, Inc.

     7,402,934       198,990,866  

Invesco Ltd.

     11,727,122       200,885,600  

Janus Henderson Group PLC

     3,476,639       90,218,782  

Lazard Ltd., Class A

     2,931,842       91,766,655  

T Rowe Price Group, Inc.

     2,597,882       291,820,085  
   

 

 

  
      962,438,124  
Chemicals — 2.7%  

Chemours Co.

     3,831,107       111,370,280  

Huntsman Corp.

     4,664,795       124,969,858  

LyondellBasell Industries NV, Class A

     3,558,932       336,710,557  
   

 

 

  
      573,050,695  
Consumer Staples Distribution & Retail — 1.7%  

Walgreens Boots Alliance, Inc.

     10,552,907       371,989,972  
   

 

 

  
Containers & Packaging — 4.1%  

International Paper Co.

     8,899,691       294,668,769  

Packaging Corp. of America

     1,783,494       241,235,398  

Sonoco Products Co.

     2,500,995       151,610,317  

Westrock Co.

     6,428,085       192,392,584  
   

 

 

  
      879,907,068  
Distributors — 0.7%  

Genuine Parts Co.

     855,769       144,034,480  
   

 

 

  
Diversified Consumer Services — 0.6%  

H&R Block, Inc.

     3,901,355       132,294,948  
   

 

 

  
Diversified Telecommunication Services — 3.9%  

AT&T Inc.

     21,238,240       375,279,701  

Verizon Communications, Inc.

     12,065,678       468,510,277  
   

 

 

  
      843,789,978  
Electric Utilities — 15.4%  

Alliant Energy Corp.

     4,609,476       254,166,507  
Security   Shares     Value  
Electric Utilities (continued)  

American Electric Power Co., Inc.

     2,845,674     $ 262,997,191  

Edison International

     4,393,136       323,334,810  

Entergy Corp.

     2,699,966       290,462,342  

Eversource Energy

     3,220,021       249,905,830  

Exelon Corp.

     5,819,664       246,986,540  

FirstEnergy Corp.

     6,689,928       266,259,134  

IDACORP, Inc.

     1,310,371       145,608,426  

NextEra Energy, Inc.

     2,383,680       182,661,398  

NRG Energy, Inc.

     5,636,885       192,612,361  

OGE Energy Corp.

     5,074,421       190,493,764  

Pinnacle West Capital Corp.

     2,738,840       214,889,386  

PPL Corp.

     8,844,081       254,002,006  

Xcel Energy, Inc.

     3,368,062       235,461,215  
   

 

 

  
        3,309,840,910  
Electrical Equipment — 0.8%  

Emerson Electric Co.

     1,977,719       164,664,884  
   

 

 

  
Financial Services — 0.4%  

Western Union Co.

     8,566,884       93,636,042  
   

 

 

  
Food Products — 2.2%  

Conagra Brands, Inc.

     6,799,740       258,118,131  

General Mills, Inc.

     2,310,494       204,779,083  
   

 

 

  
      462,897,214  
Gas Utilities — 1.9%  

New Jersey Resources Corp.

     2,450,472       126,542,374  

Southwest Gas Holdings, Inc.

     1,586,240       88,829,440  

UGI Corp.

     5,368,889       181,897,959  
   

 

 

  
      397,269,773  
Hotels, Restaurants & Leisure — 1.3%  

McDonald’s Corp.

     584,649       172,909,942  

Wendy’s Co.

     4,410,034       97,461,751  
   

 

 

  
      270,371,693  
Household Durables — 3.0%  

Garmin Ltd.

     2,041,799       200,443,408  

Leggett & Platt, Inc.

     3,485,141       112,604,906  

Newell Brands, Inc.

     10,407,608       126,452,437  

Whirlpool Corp.

     1,392,288       194,349,482  
   

 

 

  
      633,850,233  
Household Products — 1.4%  

Kimberly-Clark Corp.

     2,052,914       297,446,709  
   

 

 

  
Insurance — 6.8%  

Cincinnati Financial Corp.

     1,451,135       154,458,809  

Fidelity National Financial, Inc., Class A

     7,412,558       263,071,683  

MetLife, Inc.

     2,821,637       173,050,997  

Old Republic International Corp.

     7,488,814       189,242,330  

Principal Financial Group, Inc.

     2,327,508       173,841,573  

Prudential Financial, Inc.

     3,553,986       309,196,782  

Unum Group

     4,534,273       191,346,321  
   

 

 

  
      1,454,208,495  
IT Services — 1.6%  

International Business Machines Corp.

     2,684,106       339,297,840  
   

 

 

  
Media — 3.5%  

Interpublic Group of Cos., Inc.

     6,721,875       240,172,594  

Omnicom Group, Inc.

     2,311,401       209,343,589  

Paramount Global, Class B, NVS

     12,523,265       292,167,772  
   

 

 

  
      741,683,955  
Metals & Mining — 1.3%  

Newmont Corp.

     5,859,580       277,744,092  
 

 

 

32  

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Schedule of Investments  (continued)

April 30, 2023

   

iShares® Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Multi-Utilities — 10.7%            

Avista Corp.

     1,734,605     $ 76,444,042  

Black Hills Corp.

     1,660,116       108,388,974  

CenterPoint Energy, Inc.

     6,574,191       200,315,600  

CMS Energy Corp.

     3,725,858       231,971,919  

Dominion Energy, Inc.

     5,881,216       336,052,682  

DTE Energy Co.

     2,178,668       244,904,070  

NiSource, Inc.

     8,861,922       252,210,300  

NorthWestern Corp.

     1,488,345       87,246,784  

Public Service Enterprise Group, Inc.

     4,303,710       271,994,472  

Sempra Energy

     1,438,096       223,609,547  

WEC Energy Group, Inc.

     2,654,926       255,324,233  
   

 

 

  
      2,288,462,623  
Oil, Gas & Consumable Fuels — 5.7%  

Chevron Corp.

     1,552,047       261,644,083  

Exxon Mobil Corp.

     2,027,606       239,946,894  

Marathon Petroleum Corp.

     1,275,954       155,666,388  

ONEOK, Inc.

     5,857,730       383,154,120  

Valero Energy Corp.

     1,570,758       180,118,820  
   

 

 

  
        1,220,530,305  
Pharmaceuticals — 2.2%  

Merck & Co., Inc.

     1,709,151       197,355,666  

Pfizer, Inc.

     6,784,398       263,845,238  
   

 

 

  
      461,200,904  
Technology Hardware, Storage & Peripherals — 2.4%  

HP, Inc.

     8,471,897       251,700,060  

Seagate Technology Holdings PLC

     4,589,505       269,725,209  
   

 

 

  
      521,425,269  
Security   Shares     Value  
Tobacco — 4.2%            

Altria Group, Inc.

     11,651,360     $ 553,556,114  

Philip Morris International, Inc.

     3,524,286       352,322,871  
   

 

 

  
      905,878,985  
Trading Companies & Distributors — 1.6%  

MSC Industrial Direct Co., Inc., Class A

     1,186,095       107,614,399  

Watsco, Inc.

     706,022       244,551,901  
   

 

 

  
      352,166,300  
   

 

 

  

Total Long-Term Investments — 99.8%
(Cost: $20,486,117,535)

 

     21,378,052,886  
   

 

 

  

Short-Term Securities

 

Money Market Funds — 0.1%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(a)(b)

    30,848,274       30,848,274  
   

 

 

  

Total Short-Term Securities — 0.1% (Cost: $30,848,274)

       30,848,274  
   

 

 

  

Total Investments — 99.9%
(Cost: $20,516,965,809)

       21,408,901,160  

Other Assets Less Liabilities — 0.1%

       13,486,358  
   

 

 

  
Net Assets — 100.0%         $  21,422,387,518  
   

 

 

  

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated
Issuer 		   Value at
04/30/22 		     Purchases
at Cost 		     Proceeds
from Sale		      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
04/30/23 		     Shares
Held at
04/30/23 		     Income      Capital
Gain
Distributions
from Underlying
Funds 		 

BlackRock Cash Funds: Treasury, SL Agency Shares

    $   24,690,000      $   6,158,274 (a)     $ —      $ —      $ —      $   30,848,274        30,848,274      $   1,131,705      $ 31  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date 		       Notional
Amount
(000) 		       Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

E-mini Energy Select Sector Index

      56          06/16/23        $ 5,011        $ 410,216  

E-Mini Financial Select Sector Index

      232          06/16/23          23,821          976,738  

E-Mini Utilities Select Sector Index

      197          06/16/23          13,768          742,601  
                 

 

 

  
                  $ 2,129,555  
                 

 

 

  

 

 

 

S C H E D U L E S    O F    I N V E S  T M E N T S

   33

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Select Dividend ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

  
     Commodity
Contracts 		       Credit
Contracts
        Equity
Contracts 		       Foreign
Currency
Exchange
Contracts
        Interest
Rate
Contracts
        Other
Contracts
        Total  

 

  

Assets — Derivative Financial Instruments

                                 

Futures contracts

                                 

Unrealized appreciation on futures contracts(a)

   $ —        $ —        $   2,129,555        $ —        $ —        $ —        $   2,129,555  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

  
     Commodity
Contracts 		       Credit
Contracts		        Equity
Contracts 		       Foreign
Currency
Exchange
Contracts		        Interest
Rate
Contracts		        Other
Contracts		        Total  

 

  

Net Realized Gain (Loss) from

                                 

Futures contracts

    $ —        $ —        $   (15,402,860 )       $ —        $ —        $ —        $   (15,402,860 ) 
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                                 

Futures contracts

    $ —        $ —        $ 2,993,958        $ —        $ —        $ —        $ 2,993,958  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

 

 

  

Futures contracts

   

Average notional value of contracts — long

    $ 43,990,064  

 

  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
     Level 1        Level 2        Level 3        Total  

 

  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 21,378,052,886        $ —        $ —        $ 21,378,052,886  

Short-Term Securities

                  

Money Market Funds

      30,848,274          —          —          30,848,274  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $   21,408,901,160        $                 —        $                 —        $   21,408,901,160  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                 

Assets

                  

Equity Contracts

    $ 2,129,555        $ —        $ —        $ 2,129,555  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

34  

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Statements of Assets and Liabilities

April 30, 2023

 

     iShares
Core Dividend
ETF		     iShares
Core Dividend
Growth ETF		     

iShares

Core High
Dividend ETF

     iShares
Select Dividend ETF		  

ASSETS

         

Investments, at value — unaffiliated(a)(b)

  $ 258,466,849     $ 23,268,864,450      $ 11,109,004,735     $ 21,378,052,886  

Investments, at value — affiliated(c)

    2,182,745       210,086,797        22,682,184       30,848,274  

Cash

     27       1,788        3,019       11,220,584  

Cash pledged:

         

Futures contracts

     41,000       3,778,400        1,264,600       2,332,200  

Receivables:

         

Investments sold

     —       54,734        —       —  

Securities lending income — affiliated

     —       38,248        22,951       —  

Capital shares sold

     —       —        —       163,762  

Dividends — unaffiliated

     499,642       29,808,281        27,275,983       40,471,740  

Dividends — affiliated

     2,507       199,426        69,797       104,945  

Variation margin on futures contracts

     6,536       603,460        199,349       291,058  
 

 

 

    

 

 

     

 

 

    

 

 

  

Total assets

     261,199,306       23,513,435,584        11,160,522,618       21,463,485,449  
 

 

 

    

 

 

     

 

 

    

 

 

  

LIABILITIES

         

Collateral on securities loaned

     —       644,774        —       —  

Payables:

         

Investments purchased

     489,057       50,174        22,012,243       33,422,139  

Capital shares redeemed

     —       —        104,915       842,259  

Investment advisory fees

     10,768       1,537,601        740,675       6,833,533  
 

 

 

    

 

 

     

 

 

    

 

 

  

Total liabilities

     499,825       2,232,549        22,857,833       41,097,931  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSETS

   $ 260,699,481     $ 23,511,203,035      $ 11,137,664,785     $ 21,422,387,518  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSETS CONSIST OF:

         

Paid-in capital

   $ 294,667,656     $ 21,630,932,128      $ 12,442,637,407     $ 21,831,688,920  

Accumulated earnings (loss)

     (33,968,175 )      1,880,270,907        (1,304,972,622 )      (409,301,402 ) 
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSETS

   $ 260,699,481     $ 23,511,203,035      $ 11,137,664,785     $ 21,422,387,518  
 

 

 

    

 

 

     

 

 

    

 

 

  

NET ASSET VALUE

         

Shares outstanding

     6,950,000       462,050,000        108,400,000       182,150,000  
 

 

 

    

 

 

     

 

 

    

 

 

  

Net asset value

   $ 37.51     $ 50.88      $ 102.75     $ 117.61  
 

 

 

    

 

 

     

 

 

    

 

 

  

Shares authorized

     Unlimited       Unlimited        Unlimited       Unlimited  
 

 

 

    

 

 

     

 

 

    

 

 

  

Par value

     None       None        None       None  
 

 

 

    

 

 

     

 

 

    

 

 

  

(a) Investments, at cost — unaffiliated

   $  265,454,374     $  20,203,860,587      $  10,878,378,036     $ 20,486,117,535  

(b) Securities loaned, at value

   $ —     $ 348,178      $ —     $ —  

(c)  Investments, at cost — affiliated

   $ 2,339,779     $ 193,856,412      $ 22,682,184     $ 30,848,274  

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   35

 

Statements of Operations

Year Ended April 30, 2023

 

     iShares
Core Dividend
ETF		     iShares
Core Dividend
Growth ETF		    

iShares

Core High
Dividend ETF

     iShares
Select Dividend ETF		  

INVESTMENT INCOME

        

Dividends — unaffiliated

   $ 6,793,989     $ 588,051,257     $ 476,045,883     $ 862,494,768  

Dividends — affiliated

     42,216       5,605,047       595,499       1,131,705  

Securities lending income — affiliated — net

     —       347,885       210,968       —  

Foreign taxes withheld

     (3,728 )      (80,601 )      —       —  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total investment income

     6,832,477       593,923,588       476,852,350       863,626,473  
 

 

 

    

 

 

    

 

 

    

 

 

  

EXPENSES

        

Investment advisory

     372,214       18,664,673       9,692,306       84,438,799  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses

     372,214       18,664,673       9,692,306       84,438,799  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     6,460,263       575,258,915       467,160,044       779,187,674  
 

 

 

    

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — unaffiliated

     (23,615,437 )       (678,216,458 )      (582,942,404 )      (732,465,409 ) 

Investments — affiliated

     (78,635 )      (8,262,192 )      22,951       —  

Capital gain distributions from underlying funds — affiliated

     —       39       11       31  

Futures contracts

     (120,194 )      (7,825,050 )      (1,373,736 )      (15,402,860 ) 

In-kind redemptions — unaffiliated(a)

    11,185,142       933,269,271       771,503,706       1,432,050,704  

In-kind redemptions — affiliated(a)

    11,443       9,232,020       —       —  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (12,617,681 )      248,197,630       187,210,528       684,182,466  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

        

Investments — unaffiliated

     (1,131,685 )      (87,340,574 )       (427,539,745 )       (1,830,426,503 ) 

Investments — affiliated

     91,922       14,951,891       —       —  

Futures contracts

     77,277       6,667,797       1,405,406       2,993,958  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (962,486 )      (65,720,886 )      (426,134,339 )      (1,827,432,545 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

      (13,580,167 )      182,476,744       (238,923,811 )      (1,143,250,079 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $ (7,119,904 )    $ 757,735,659     $ 228,236,233     $ (364,062,405 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

 

 

36  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

 

Statements of Changes in Net Assets

 

    iShares Core Dividend ETF           iShares Core Dividend Growth ETF  
     Year Ended
04/30/23		             Year Ended
04/30/22		            Year Ended
04/30/23		             Year Ended
04/30/22		  

INCREASE (DECREASE) IN NET ASSETS

                

OPERATIONS

                

Net investment income

   $ 6,460,263        $ 2,926,970       $ 575,258,915        $ 445,718,048  

Net realized gain (loss)

     (12,617,681 )         9,208,877         248,197,630          971,722,516  

Net change in unrealized appreciation (depreciation)

     (962,486 )         (19,291,256 )        (65,720,886 )         (933,077,494 ) 
 

 

 

       

 

 

      

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

     (7,119,904 )         (7,155,409 )        757,735,659          484,363,070  
 

 

 

       

 

 

      

 

 

       

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

               

Decrease in net assets resulting from distributions to shareholders

     (6,069,221 )         (2,605,463 )        (566,321,278 )         (433,784,061 ) 
 

 

 

       

 

 

      

 

 

       

 

 

  

CAPITAL SHARE TRANSACTIONS

                

Net increase in net assets derived from capital share transactions

     13,625,180          202,844,254         576,990,646          4,289,062,601  
 

 

 

       

 

 

      

 

 

       

 

 

  

NET ASSETS

                

Total increase in net assets

     436,055          193,083,382         768,405,027          4,339,641,610  

Beginning of year

     260,263,426          67,180,044         22,742,798,008          18,403,156,398  
 

 

 

       

 

 

      

 

 

       

 

 

  

End of year

   $  260,699,481        $  260,263,426       $  23,511,203,035        $  22,742,798,008  
 

 

 

       

 

 

      

 

 

       

 

 

  

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   37

 

Statements of Changes in Net Assets (continued)

 

    iShares Core High Dividend ETF           iShares Select Dividend ETF  
     Year Ended
04/30/23		             Year Ended
04/30/22		            Year Ended
04/30/23		             Year Ended
04/30/22		  

INCREASE (DECREASE) IN NET ASSETS

                

OPERATIONS

                

Net investment income

   $ 467,160,044        $ 282,262,323       $ 779,187,674        $ 627,979,818  

Net realized gain

     187,210,528          479,090,410         684,182,466          1,169,713,678  

Net change in unrealized appreciation (depreciation)

     (426,134,339 )         55,124,197         (1,827,432,545 )         (420,759,814 ) 
 

 

 

       

 

 

      

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

     228,236,233          816,476,930         (364,062,405 )         1,376,933,682  
 

 

 

       

 

 

      

 

 

       

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

               

Decrease in net assets resulting from distributions to shareholders

     (476,667,345 )         (262,993,551 )        (783,757,169 )         (605,570,050 ) 
 

 

 

       

 

 

      

 

 

       

 

 

  

CAPITAL SHARE TRANSACTIONS

                

Net increase in net assets derived from capital share transactions

     1,755,194,226          2,238,090,827         908,270,822          2,395,005,483  
 

 

 

       

 

 

      

 

 

       

 

 

  

NET ASSETS

                

Total increase (decrease) in net assets

     1,506,763,114          2,791,574,206         (239,548,752 )         3,166,369,115  

Beginning of year

     9,630,901,671          6,839,327,465         21,661,936,270          18,495,567,155  
 

 

 

       

 

 

      

 

 

       

 

 

  

End of year

   $  11,137,664,785        $  9,630,901,671       $  21,422,387,518        $  21,661,936,270  
 

 

 

       

 

 

      

 

 

       

 

 

  

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

38  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Core Dividend ETF  
            Year Ended
04/30/23		      Year Ended
04/30/22		      Year Ended
04/30/21		      Year Ended
04/30/20		      Year Ended
04/30/19		  

Net asset value, beginning of year

     $ 39.14      $ 38.39      $ 25.94      $ 27.96      $ 25.30  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

      0.96        0.77        0.70        0.64        0.61  

Net realized and unrealized gain (loss)(b)

      (1.68 )       0.68        12.43        (2.02 )       2.67  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

       (0.72 )       1.45        13.13        (1.38 )       3.28  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions(c)

               

From net investment income

       (0.91 )       (0.70 )       (0.68 )       (0.64 )       (0.58 ) 

From net realized gain

       —        —        —        —        (0.04 ) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

       (0.91 )       (0.70 )       (0.68 )       (0.64 )       (0.62 ) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

     $ 37.51      $ 39.14      $ 38.39      $ 25.94      $ 27.96  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(d)

               

Based on net asset value

       (1.75 )%       3.71 %       51.33 %       (4.95 )%       13.21 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

       0.15 %       0.25 %       0.25 %       0.25 %       0.25 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

       2.54 %       1.87 %       2.20 %       2.31 %       2.34 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

                

Net assets, end of year (000)

     $  260,699      $  260,263      $  67,180      $  24,645      $  8,389  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(f)

      65 %       25 %       30 %       33 %       31 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   39

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Core Dividend Growth ETF  
            Year Ended
04/30/23		      Year Ended
04/30/22		      Year Ended
04/30/21		      Year Ended
04/30/20		      Year Ended
04/30/19		  

Net asset value, beginning of year

     $ 50.58      $ 49.87      $ 36.39      $ 38.13      $ 33.86  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

      1.22        1.10        1.08        0.99        0.91  

Net realized and unrealized gain (loss)(b)

      0.28        0.68        13.44        (1.77 )       4.20  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

       1.50        1.78        14.52        (0.78 )       5.11  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(c)

      (1.20 )       (1.07 )       (1.04 )       (0.96 )       (0.84 ) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

     $ 50.88      $ 50.58      $ 49.87      $ 36.39      $ 38.13  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(d)

               

Based on net asset value

       3.13 %       3.51 %       40.52 %       (2.05 )%       15.30 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

       0.08 %       0.08 %       0.08 %       0.08 %       0.08 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

       2.47 %       2.10 %       2.53 %       2.55 %       2.55 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

                

Net assets, end of year (000)

     $  23,511,203      $  22,742,798      $  18,403,156      $  9,355,727      $  7,084,809  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(f)

      30 %       22 %       31 %       24 %       26 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

40  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Core High Dividend ETF  
            Year Ended
04/30/23		      Year Ended
04/30/22		      Year Ended
04/30/21		      Year Ended
04/30/20		      Year Ended
04/30/19		  

Net asset value, beginning of year

     $ 103.67      $ 95.59      $ 81.85      $ 95.42      $ 84.44  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

      3.95        3.68        3.56        3.24        3.09  

Net realized and unrealized gain (loss)(b)

      (0.88 )       7.80        13.72        (13.51 )       11.01  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

       3.07        11.48        17.28        (10.27 )       14.10  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(c)

      (3.99 )       (3.40 )       (3.54 )       (3.30 )       (3.12 ) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

     $ 102.75      $ 103.67      $ 95.59      $ 81.85      $ 95.42  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(d)

               

Based on net asset value

       3.16 %       12.21 %       21.70 %       (10.86 )%       17.05 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

       0.08 %       0.08 %       0.08 %       0.08 %       0.08 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

       3.86 %       3.68 %       4.13 %       3.53 %       3.48 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

                

Net assets, end of year (000)

     $  11,137,665      $  9,630,902      $  6,839,327      $  6,036,798      $  7,175,741  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(f)

      74 %       74 %       75 %       62 %       57 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   41

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Select Dividend ETF  
            Year Ended
04/30/23		      Year Ended
04/30/22		      Year Ended
04/30/21		      Year Ended
04/30/20		      Year Ended
04/30/19		  

Net asset value, beginning of year

     $ 123.50      $ 118.37      $ 80.66      $ 101.13      $ 96.31  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

      4.24        3.91        3.51        3.51        3.31  

Net realized and unrealized gain (loss)(b)

      (5.87 )       4.97        37.74        (20.30 )       4.80  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

       (1.63 )       8.88        41.25        (16.79 )       8.11  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(c)

      (4.26 )       (3.75 )       (3.54 )       (3.68 )       (3.29 ) 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

     $ 117.61      $ 123.50      $ 118.37      $ 80.66      $ 101.13  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(d)

               

Based on net asset value

       (1.23 )%       7.63 %       52.54 %       (16.96 )%       8.63 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

       0.38 %       0.38 %       0.38 %       0.39 %       0.39 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

       3.52 %       3.23 %       3.78 %       3.60 %       3.40 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

                

Net assets, end of year (000)

     $  21,422,388      $  21,666,936      $  18,495,567      $  13,257,023      $  17,585,695  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(f)

      15 %       15 %       55 %       6 %       21 % 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Based on average shares outstanding.

(b) 

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

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

42  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements  

 

1.

ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

iShares ETF   Diversification
Classification		  

Core Dividend(a)

    Diversified  

Core Dividend Growth

     Diversified  

Core High Dividend

     Non-Diversified  

Select Dividend

     Diversified  

 

  (a) 

Formerly the iShares U.S. Dividend and Buyback ETF.

 

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign 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 jurisdiction in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of April 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

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

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise

 

 

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Notes to Financial Statements  (continued)

 

accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

  •  

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

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

  •  

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

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

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

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

  •  

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and

 

  •  

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

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

 

 

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Notes to Financial Statements  (continued)

 

connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

iShares ETF and Counterparty     
 Securities
Loaned at Value 		 
 		     
 Cash
Collateral Received		  
(a) 		    

 Non-Cash
Collateral Received,
at Fair Value		  
 
(a)  		    
 Net
Amount 		 
 

 

  

Core Dividend Growth

          

J.P. Morgan Securities LLC

    $ 348,178      $ (348,178 )    $ —     $ —  
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained to an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

iShares ETF   Investment Advisory Fees  

Core Dividend

     0.05 % 

Core Dividend Growth

     0.08  

Core High Dividend

     0.08  

Prior to October 25, 2022, BFA was entitled to an annual investment advisory fee of 0.25%, accrued daily and paid monthly by the iShares Core Dividend ETF, based on the average daily net assets of the Fund.

 

 

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Notes to Financial Statements  (continued)

 

For its investment advisory services to the iShares Select Dividend ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fees  

First $46 billion

     0.4000 % 

Over $46 billion, up to and including $81 billion

     0.3800  

Over $81 billion, up to and including $111 billion

     0.3610  

Over $111 billion, up to and including $141 billion

     0.3430  

Over $141 billion, up to and including $171 billion

     0.3259  

Over $171 billion

     0.3096  

Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. Each Fund does not pay BRIL for ETF Services.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the year ended April 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Amounts  

Core Dividend Growth

   $ 85,696  

Core High Dividend

     52,652  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)		  

Core Dividend

   $ 94,969,928      $ 76,161,801      $ (16,925,550 ) 

Core Dividend Growth

     1,285,177,404        1,174,612,485        (118,224,806 ) 

Core High Dividend

     1,335,495,881        1,828,547,937        (85,312,331 ) 

Select Dividend

     218,257,809        481,992,957        (136,150,018 ) 

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

 

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Notes to Financial Statements  (continued)

 

7.

PURCHASES AND SALES

For the year ended April 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Core Dividend

   $ 165,564,826      $ 165,098,872  

Core Dividend Growth

     7,043,976,956        7,040,017,858  

Core High Dividend

     8,866,749,370        8,856,148,451  

Select Dividend

     3,517,995,980        3,347,858,226  

For the year ended April 30, 2023, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases 		     In-kind
Sales 		 

Core Dividend

   $ 112,755,863      $ 99,353,089  

Core Dividend Growth

     3,493,981,587        2,918,382,552  

Core High Dividend

     6,683,682,001        4,951,692,725  

Select Dividend

     5,436,041,407        4,698,943,404  

 

8.

INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of April 30, 2023, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:

 

iShares ETF   Paid-in capital      Accumulated earnings (loss)  

Core Dividend

   $ 11,113,666      $ (11,113,666 ) 

Core Dividend Growth

     940,745,339        (940,745,339 ) 

Core High Dividend

     768,374,830        (768,374,830 ) 

Select Dividend

     1,420,840,792        (1,420,840,792 ) 

The tax character of distributions paid was as follows:

 

iShares ETF    Year Ended
April 30, 2023		      Year Ended
April 30, 2022		  

Core Dividend

      

Ordinary income

    $ 6,069,221      $ 2,605,463  
  

 

 

     

 

 

  

Core Dividend Growth

      

Ordinary income

    $ 566,321,278      $ 433,784,061  
  

 

 

     

 

 

  

Core High Dividend

      

Ordinary income

    $ 476,667,345      $ 262,993,551  
  

 

 

     

 

 

  

Select Dividend

      

Ordinary income

    $ 783,757,169      $ 605,570,050  
  

 

 

     

 

 

  

 

 

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Notes to Financial Statements  (continued)

 

As of April 30, 2023, the tax components of accumulated net earnings (losses) were as follows:

 

iShares ETF   Undistributed
Ordinary Income		      Non-expiring
Capital Loss
Carryforwards(a)		     Net Unrealized
Gains (Losses)(b)		     Total  

Core Dividend

   $ 790,426      $ (27,102,633 )    $ (7,655,968 )    $ (33,968,175 ) 

Core Dividend Growth

     46,746,271        (1,198,672,614 )      3,032,197,250       1,880,270,907  

Core High Dividend

     18,169,628        (1,517,558,189 )      194,415,939       (1,304,972,622 ) 

Select Dividend

     26,626,240        (1,183,909,294 )      747,981,652       (409,301,402 ) 

 

(a)

Amounts available to offset future realized capital gains.

 
(b)

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, the characterization of corporate actions, the timing and recognition of partnership income and the timing and recognition of realized gains (losses) for tax purposes.

 

As of April 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation 		     Gross Unrealized
Depreciation 		    Net Unrealized
Appreciation
(Depreciation) 		 

Core Dividend

   $ 268,305,562      $ 9,192,641      $ (16,848,609 )    $ (7,655,968 ) 

Core Dividend Growth

     20,446,753,997        3,567,284,035        (535,086,785 )      3,032,197,250  

Core High Dividend

     10,937,270,980        781,563,591        (587,147,652 )      194,415,939  

Select Dividend

     20,660,919,508        2,139,363,711        (1,391,382,059 )      747,981,652  

 

9.

PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

 

 

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Notes to Financial Statements  (continued)

 

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

10.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

Transactions in capital shares were as follows:

 

     Year Ended
04/30/23		     Year Ended
04/30/22		  
iShares ETF   Shares     Amount     Shares     Amount  

Core Dividend

        

Shares sold

     3,000,000     $ 113,592,280       5,700,000     $ 235,671,266  

Shares redeemed

     (2,700,000 )      (99,967,100 )      (800,000 )      (32,827,012 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    300,000     $ 13,625,180       4,900,000     $ 202,844,254  
 

 

 

    

 

 

    

 

 

    

 

 

  

Core Dividend Growth

        

Shares sold

     70,700,000     $ 3,514,986,304       121,400,000     $ 6,428,227,610  

Shares redeemed

     (58,300,000 )      (2,937,995,658 )      (40,750,000 )      (2,139,165,009 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    12,400,000     $ 576,990,646       80,650,000     $ 4,289,062,601  
 

 

 

    

 

 

    

 

 

    

 

 

  

Core High Dividend

        

Shares sold

     64,500,000     $ 6,706,128,749       39,450,000     $ 4,102,347,570  

Shares redeemed

     (49,000,000 )      (4,950,934,523 )      (18,100,000 )      (1,864,256,743 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    15,500,000     $ 1,755,194,226       21,350,000     $ 2,238,090,827  
 

 

 

    

 

 

    

 

 

    

 

 

  

Select Dividend

        

Shares sold

     48,000,000     $     5,672,978,227       48,950,000     $     6,044,186,342  

Shares redeemed

     (41,250,000 )      (4,764,707,405 )      (29,800,000 )      (3,649,180,859 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    6,750,000     $ 908,270,822       19,150,000     $ 2,395,005,483  
 

 

 

    

 

 

    

 

 

    

 

 

  

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of

 

 

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   49

Notes to Financial Statements  (continued)

 

Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

11.

SUBSEQUENT EVENTS

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

 

 

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Report of Independent Registered Public Accounting Firm        

 

To the Board of Trustees of

iShares Trust and Shareholders of each of the four funds listed in the table below

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (four of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of April 30, 2023, the related statements of operations for the year ended April 30, 2023, the statements of changes in net assets for each of the two years in the period ended April 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of April 30, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended April 30, 2023 and each of the financial highlights for each of the five years in the period ended April 30, 2023 in conformity with accounting principles generally accepted in the United States of America.

 

 

iShares Core Dividend ETF

 

iShares Core Dividend Growth ETF

 

iShares Core High Dividend ETF

 

iShares Select Dividend ETF

 

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

June 21, 2023

We have served as the auditor of one or more BlackRock investment companies since 2000.

 

 

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   51

Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated are qualified dividend income for individuals for the fiscal year ended April 30, 2023:

 

iShares ETF  

Qualified Dividend

Income

 

Core Dividend

   $ 6,495,642  

Core Dividend Growth

     588,412,433  

Core High Dividend

     469,772,321  

Select Dividend

     859,760,474  

The following amount, or maximum amount allowable by law, is hereby designated as qualified business income for individuals for the fiscal year ended April 30, 2023:

 

iShares ETF   Qualified Business
Income		  

Core Dividend

   $ 75,933  

The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended April 30, 2023 qualified for the dividends-received deduction for corporate shareholders:

 

iShares ETF   Dividends-Received
Deduction		  

Core Dividend

     98.15 % 

Core Dividend Growth

     99.10  

Core High Dividend

     99.55  

Select Dividend

     100.00  

 

 

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Statement Regarding Liquidity Risk Management Program (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares Core Dividend ETF, iShares Core Dividend Growth ETF, iShares Core High Dividend ETF and iShares Select Dividend ETF (the “Funds” or “ETFs”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 9, 2021 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size ("RATS"). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing.

 

  d)

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period.

 

  e)

The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

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   53

Supplemental Information (unaudited)

 

Section 19(a) Notices

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

April 30, 2023

 

     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 		 

Core High Dividend

   $ 3.987997     $ —     $ —     $  3.987997         100 %      — %      — %      100 % 

Select Dividend

     4.258177       —       —       4.258177               100       —       —       100  

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive, and its United Kingdom (“UK”) equivalent, (“AIFMD”) impose detailed and prescriptive obligations on fund managers established in the European Union (the “EU”) and the UK. These do not currently apply to managers established outside of the EU or UK, such as BFA (the “Company”). Rather, the Company is only required to comply with certain disclosure, reporting and transparency obligations of AIFMD because it has registered the iShares Select Dividend ETF (the “Fund”) to be marketed to investors in the EU and/or UK.

Report on Remuneration

The Company is required under AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.

BlackRock has a clear and well-defined pay-for-performance philosophy, and compensation programs which support that philosophy.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management and staff who have the ability to materially affect the risk profile of the Fund, a significant percentage of variable remuneration is deferred over time. All employees are subject to a clawback policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units and therefore staff members in control functions are remunerated independently of the businesses they oversee. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.

Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Conversely, members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Company. Therefore, the figures disclosed are a sum

 

 

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Supplemental Information (unaudited)

 

of individuals’ portion of remuneration attributable to the Company according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company and the broader BlackRock group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded to the Company’s staff in respect of the Company’s financial year ending December 31, 2022 was USD 4,121 million. This figure is comprised of fixed remuneration of USD 685 million and variable remuneration of USD 3,436 million. There was a total of 8 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by the Company in respect of the Company’s financial year ending December 31, 2022, to its senior management was USD 2,958 million, and to other members of its staff whose actions potentially have a material impact on the risk profile of the Company or its funds was USD 970 million. These figures relate to the entire Company and not to the Fund.

Disclosures Under the EU Sustainable Finance Disclosure Regulation

iShares Select Dividend ETF is registered under the Alternative Investment Fund Managers Directive to be marketed to European Union (“EU”) investors, as noted above. As a result, certain disclosures are required under the EU Sustainable Finance Disclosure Regulation (“SFDR”).

iShares Select Dividend ETF has not been categorized under the SFDR as an “Article 8” or “Article 9” product. In addition, the Fund’s investment strategy does not take into account the criteria for environmentally sustainable economic activities under the EU sustainable investment taxonomy regulation or principal adverse impacts (“PAIs”) on sustainability factors under the SFDR. PAIs are identified under the SFDR as the material impacts of investment decisions on sustainability factors relating to environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters.

 

 

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   55

Trustee and Officer Information (unaudited)

 

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 380 funds as of April 30, 2023. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

 

Interested Trustees
       
Name (Year of
Birth)		    Position(s)   

Principal Occupation(s)

During Past 5 Years

    Other Directorships Held by Trustee

Robert S. Kapito(a)

(1957)

    Trustee (since 2009).   

President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).

    Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Salim Ramji(b)

(1970)

    Trustee (since 2019).   

Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).

    Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).
(a) 

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b) 

Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

 

Independent Trustees
       
Name (Year of
Birth)		    Position(s)   

Principal Occupation(s)

During Past 5 Years

    Other Directorships Held by Trustee
John E. Kerrigan (1955)    Trustee (since 2005); Independent Board Chair (since 2022).   

Chief Investment Officer, Santa Clara University (since 2002).

    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022).
Jane D. Carlin (1956)    Trustee (since 2015); Risk Committee Chair (since 2016).   

Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).

    Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (1954)    Trustee (since 2017); Audit Committee Chair (since 2019).   

Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021).

    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

 

 

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Trustee and Officer Information (unaudited)  (continued)

 

Independent Trustees
       

Name (Year of

Birth)

    Position(s)   

Principal Occupation(s)

During Past 5 Years

    Other Directorships Held by Trustee
Cecilia H. Herbert (1949)    Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022).   

Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015- 2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022).

    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E. Lawton (1959)    Trustee (since 2017); 15(c) Committee Chair (since 2017).   

Senior Managing Director of New York Life Insurance Company (2010-2015).

    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021).
John E. Martinez (1961)    Trustee (since 2003); Securities Lending Committee Chair (since 2019).   

Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).

    Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (1964)    Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019).   

Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).

    Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

 

 

T R U S T E E   A N D   O F F I C E R   I N F O R M A T I O N

   57

Trustee and Officer Information (unaudited)  (continued)

 

Officers
     

Name (Year of

Birth)

    Position(s)   

Principal Occupation(s)

During Past 5 Years

Dominik Rohé (1973)    President (since 2023).   

Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019- 2023).

Trent Walker (1974)    Treasurer and Chief Financial Officer (since 2020).   

Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Charles Park (1967)    Chief Compliance Officer (since 2006).   

Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Marisa Rolland (1980)    Secretary (since 2022).   

Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017).

Rachel Aguirre (1982)    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019).

Jennifer Hsui (1976)    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James Mauro (1970)    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020).

 

 

Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.

 

Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.

 

 

 

58  

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General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

  •  

Go to icsdelivery.com.

  •  

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

G E N E R A L   I N F O R M A T I O N

   59

Glossary of Terms Used in this Report

 

Portfolio Abbreviation
NVS    Non-Voting Shares
REIT    Real Estate Investment Trust
S&P    Standard & Poor’s

 

 

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Want to know more?

iShares.com    |     1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

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

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-409-0423

 

 

LOGO

   LOGO

 

LOGO

  APRIL 30, 2023

 

  

2023 Annual Report

 

 

iShares Trust

 

·  

iShares Morningstar Mid-Cap Value ETF | IMCV | NASDAQ

 

·  

iShares Morningstar Small-Cap ETF | ISCB | NYSE Arca

 

·  

iShares Morningstar U.S. Equity ETF | ILCB | NYSE Arca

 

·  

iShares Morningstar Value ETF | ILCV | NYSE Arca

The Markets in Review

Dear Shareholder,

Investors faced an uncertain economic landscape during the 12-month reporting period ended April 30, 2023, amid mixed indicators and rapidly changing market conditions. The U.S. economy returned to modest growth beginning in the third quarter of 2022, although the pace of growth slowed thereafter. Inflation was elevated, reaching a 40-year high as labor costs grew rapidly and unemployment rates reached the lowest levels in decades. However, inflation moderated as the period continued, while continued strength in consumer spending backstopped the economy.

Equity returns varied substantially, as large-capitalization U.S. stocks gained for the period amid a rebound in big tech stocks, whereas small-capitalization U.S. stocks declined. International equities from developed markets advanced strongly, while emerging market stocks declined, pressured by higher interest rates and volatile commodities prices.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bonds posted a positive return as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. In addition, the Fed added liquidity to markets amid the failure of prominent regional banks.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth was modest in the last year, we believe that stickiness in services inflation and continued wage growth will keep inflation above central bank targets for some time. Although the Fed has decelerated the pace of interest rate hikes and indicated a pause could be its next step, we believe that the Fed still seems determined to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions. Turmoil in the banking sector late in the period highlighted the potential for the rapid increase in interest rates to disrupt markets with little warning.

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar could provide a supportive backdrop. We also see selective, long-term opportunities in credit, where we believe that valuations are appealing, and higher yields offer attractive income. However, we are neutral on credit in the near term, as we’re concerned about tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most significant opportunities in short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of April 30, 2023

 

    6-Month     12-Month  
   

U.S. large cap equities (S&P 500® Index)

   8.63 %    2.66 % 
   

U.S. small cap equities (Russell 2000® Index)

   (3.45 )    (3.65 ) 
   

International equities (MSCI Europe, Australasia, Far East Index)

   24.19     8.42  
   

Emerging market equities (MSCI Emerging Markets Index)

   16.36     (6.51 ) 
   

3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)

   2.09     2.83  
   

U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)

   7.14     (1.68 ) 
   

U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)

   6.91     (0.43 ) 
   

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

   7.65     2.87  
   

U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

   6.21     1.21  

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 
 

 

 

2    T H I S  P A G E  I S  N O T  P A R T  O F  Y O U R  F U N D  R E P O R T

Table of Contents

 

      Page  

The Markets in Review

      2  

Annual Report:

   

Market Overview

      4  

Fund Summary

      5  

About Fund Performance

      13  

Disclosure of Expenses

      13  

Schedules of Investments

      14  

Financial Statements:

   

Statements of Assets and Liabilities

      56  

Statements of Operations

      57  

Statements of Changes in Net Assets

      58  

Financial Highlights

      60  

Notes to Financial Statements

      64  

Report of Independent Registered Public Accounting Firm

      72  

Important Tax Information

      73  

Statement Regarding Liquidity Risk Management Program

      74  

Supplemental Information

      75  

Trustee and Officer Information

      76  

General Information

      79  

Glossary of Terms Used in this Report

      80  

 

 

 

  3

Market Overview  

 

iShares Trust

Domestic Market Overview

U.S. stocks advanced for the 12 months ended April 30, 2023 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned 1.50%. Despite headwinds, including elevated inflation and rapid tightening of monetary policy, equities were supported by the economy’s continued resilience. While inflation was high throughout the reporting period, the pace of inflationary growth slackened, driving investor optimism. Markets endured in the face of disruption from the banking industry late in the reporting period. In March 2023, two banks suddenly failed, representing the second and third largest bank failures in U.S. history by asset value and leading to concern about the stability of a third bank. However, government agencies acted swiftly to organize a sale of the failed banks’ assets and inject liquidity, and equity prices recovered.

Inflation was a significant driver of the economic outlook. As the reporting period began, the consumer price index, a widely followed measure of inflation, stood at a multi-decade high. Strong consumer spending and a tight labor market, along with continued supply chain disruptions in Asia, combined to drive prices higher. The rate of inflation began to decline beginning in July 2022, continuing to decelerate for 10 consecutive months. Nonetheless, inflation remained elevated by historic standards, and higher prices negatively impacted both consumers and businesses.

The U.S. economy recovered from a contraction in the first half of 2022 to post modest growth in the second half of 2022 and the first quarter of 2023. Consumers continued to power the economy with growing spending, despite higher prices for many consumer goods and services. The strong labor market supported spending, as unemployment remained very low, at one point dropping to the lowest posted level since 1969. Furthermore, the labor force participation rate — which measures the total proportion of working age persons employed or looking for work — rose, indicating that more people were being drawn into the labor force. Amid tightening labor supply, wages rose significantly, with the largest gains at the lower end of the wage spectrum.

To contain inflation, the U.S. Federal Reserve Bank (“Fed”) tightened monetary policy rapidly, raising short-term interest rates eight times over the course of the reporting period. The pace of tightening accelerated as the Fed twice stepped up the increment of increase before reducing it again as inflation began to subside. The Fed also started to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic. While the Fed indicated that more tightening could be needed to achieve its long-term inflation goal, it sounded a more cautious note about the potential for further interest rate increases near the end of the reporting period.

Despite economic headwinds, corporate profits remained robust, as many companies were able to sufficiently raise prices to preserve profit margins even in the face of rising labor and input costs. Nonetheless, profits declined overall in the fourth quarter of 2022, and the yield curve (a graphical representation of U.S. Treasury rates at different maturities) inverted, a sign that markets were concerned about the impact of higher borrowing costs on the economy. Furthermore, dwindling personal savings and rising household debt raised questions about the sustainability of consumer spending as an engine of economic growth.

 

 

4  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of April 30, 2023     iShares® Morningstar Mid-Cap Value ETF

 

Investment Objective

The iShares Morningstar Mid-Cap Value ETF (the “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® US Mid Cap Broad Value IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
    

 

1 Year

     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     (2.60 )%      6.08 %      9.36 %      (2.60 )%      34.35 %      144.66 % 

Fund Market

     (2.65 )      6.10       9.36       (2.65 )      34.44       144.75  

Index

     (2.61 )      6.25       9.60       (2.61 )      35.38       150.14  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through March 21, 2021 reflects the performance of the Morningstar US Mid Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Mid Cap Broad Value IndexSM.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
                                                            
 

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		            

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		       

 Annualized
Expense
Ratio		  
 
 
  $      1,000.00          $      1,023.10          $          0.31               $      1,000.00          $      1,024.49          $      0.30                0.06 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

F U N D    S U M M A R Y

   5

Fund Summary as of April 30, 2023 (continued)    iShares® Morningstar Mid-Cap Value ETF

 

Portfolio Management Commentary

Value-oriented mid-capitalization U.S. stocks declined for the reporting period, as slower economic growth and elevated inflation and interest rates precipitated a shift toward larger, less expensive stocks and away from smaller and less liquid stocks. The real estate sector detracted the most from the Index’s return, as higher interest rates and changing usage patterns weighed on equity real estate investment trusts (“REITs”). REITs typically take on substantial debt to finance the purchase of the properties they manage, and higher interest rates made financing more expensive for REITs. Furthermore, higher interest rates meant increased bond yields, making dividend yields from REITs comparatively less attractive to income-oriented investors.

The financials sector detracted significantly from the Index’s performance amid tightening financial conditions. Persistently high inflation led to significant tightening from the Fed, and investors became concerned about the long-term effect of this tightening on loan growth and credit losses in the banking industry. Bank stocks were further pressured late in the reporting period after the sudden failure of two regional banks.

The materials sector also detracted notably, led by the chemicals industry. As the price of food commodities declined from the highs reached immediately following Russia’s invasion of Ukraine, makers of fertilizer products faced headwinds. The containers and packaging industry also declined amid softening demand for containerboard.

On the upside, industrials stocks contributed the most to the Index’s return, as the capital goods industry benefited from government incentives that encouraged investments in additional industrial capacity. Pandemic-related supply chain disruptions led some manufacturers to add domestic production capacity to increase speed and flexibility. The machinery industry was a notable source of strength, as the manufacturing resurgence drove strong demand for industrial machinery, enabling significant price increases.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector  

Percent of   
Total Investments(a)

  

Financials

     15.7%  

Industrials

     12.5     

Utilities

     12.2     

Materials

     10.6     

Consumer Discretionary

     10.6     

Real Estate

     9.3     

Health Care

     9.0     

Information Technology

     7.2     

Consumer Staples

     6.0     

Energy

     4.3     

Communication Services

     2.6     

TEN LARGEST HOLDINGS

 

Security  

Percent of   
Total Investments(a)

  

Biogen, Inc.

     1.2%  

Dow, Inc.

     1.0     

Xcel Energy, Inc.

     1.0     

Newmont Corp.

     1.0     

Simon Property Group, Inc.

     1.0     

Consolidated Edison, Inc.

     0.9     

DR Horton, Inc.

     0.9     

Cummins, Inc.

     0.9     

PPG Industries, Inc.

     0.9     

DuPont de Nemours, Inc.

     0.8     
 

 

(a) 

Excludes money market funds.

 

 

6   

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of April 30, 2023    iShares® Morningstar Small-Cap ETF

 

Investment Objective

The iShares Morningstar Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Morningstar® US Small Cap Extended IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
    

 

1 Year

     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     (2.85 )%      3.33 %      7.13 %      (2.85 )%      17.79 %      99.04 % 

Fund Market

     (3.00 )      3.27       7.09       (3.00 )      17.46       98.44  

Index

     (3.06 )      3.35       7.19       (3.06 )      17.90       100.29  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Small Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar US Small Cap Extended IndexSM.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
                                                            
 

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		            

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		       

 Annualized
Expense
Ratio		  
 
 
  $      1,000.00          $      995.70          $          0.20               $      1,000.00          $      1,024.60          $      0.20                0.04 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

F U N D    S U M M A R Y

   7

Fund Summary as of April 30, 2023 (continued)    iShares® Morningstar Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization U.S. stocks declined for the reporting period, as slower economic growth and elevated inflation and interest rates precipitated a shift toward larger, less expensive stocks and away from smaller and less liquid stocks. The real estate sector detracted the most from the Index’s return, as higher interest rates and changing usage patterns weighed on stocks in the sector. Equity real estate investment trusts (“REITs”) were the largest source of weakness. REITs typically take on substantial debt in order to finance the purchase of the properties they manage, and higher interest rates made financing more expensive for REITs. Furthermore, higher interest rates meant increased bond yields, making dividend yields from REITs comparatively less attractive to income-oriented investors, although many REITs raised dividends during the reporting period.

The financials sector detracted significantly from the Index’s performance amid tightening financial conditions. The banking industry faced significant challenges as the potential impact of a slowing economy outweighed the benefits of being able to charge more for loans. Persistently high inflation led to significant tightening from the Fed, and investors became concerned about the long-term effect of this tightening on loan growth and credit losses. Bank stocks were further pressured late in the reporting period after the liquidation of a key bank for cryptocurrency firms followed by the sudden failure of two regional banks.

On the upside, industrials stocks contributed the most to the Index’s return, as the capital goods industry benefited from government incentives that encouraged investments in additional industrial capacity. Furthermore, some manufacturers added domestic production capacity following pandemic-related supply chain disruptions. The machinery industry was a notable source of strength, as the manufacturing resurgence drove strong demand for industrial machinery, enabling significant price increases.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector  

Percent of   
Total Investments(a)

  

Industrials

     18.2%  

Financials

     15.7     

Health Care

     15.2     

Consumer Discretionary

     14.1     

Information Technology

     12.3     

Real Estate

     5.7     

Materials

     5.3     

Energy

     4.0     

Consumer Staples

     3.6     

Communication Services

     3.3     

Utilities

     2.6     

TEN LARGEST HOLDINGS

 

Security  

Percent of   
Total Investments(a)

  

Exact Sciences Corp.

     0.4%  

Lattice Semiconductor Corp.

     0.3     

Penumbra, Inc.

     0.3     

DraftKings, Inc., Class A

     0.3     

RenaissanceRe Holdings Ltd.

     0.3     

Masimo Corp.

     0.3     

Royal Gold, Inc.

     0.3     

Dick’s Sporting Goods, Inc.

     0.3     

EMCOR Group, Inc.

     0.3     

Iridium Communications, Inc.

     0.2     
 

 

(a) 

Excludes money market funds.

 

 

 

8  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of April 30, 2023     iShares® Morningstar U.S. Equity ETF

 

Investment Objective

The iShares Morningstar U.S. Equity ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities, as represented by the Morningstar® US Large-Mid Cap IndexSM (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 re included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
    

 

1 Year

     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     1.77 %      10.38 %      11.31 %      1.77 %      63.86 %      191.90 % 

Fund Market

     1.84       10.38       11.31       1.84       63.82       191.93  

Index

     1.78       10.52       11.49       1.78       64.87       196.81  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar US Large-Mid Cap IndexSM.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
                                                            
 

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		            

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		       

 Annualized
Expense
Ratio		  
 
 
  $      1,000.00          $      1,081.90          $          0.16               $      1,000.00          $      1,024.64          $      0.15                0.03 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D    S U M M A R Y

   9

Fund Summary as of April 30, 2023 (continued)    iShares® Morningstar U.S. Equity ETF

 

Portfolio Management Commentary

Large- and mid-capitalization U.S. stocks advanced for the reporting period, as slower economic growth and elevated inflation and interest rates precipitated a shift toward larger, less expensive stocks and away from smaller and less liquid stocks. The information technology sector contributed the most to the Index’s return. The semiconductors and semiconductor equipment industry advanced strongly amid optimism about the impact of artificial intelligence (“AI”) applications. The launch and rapid growth of a prominent, consumer-facing AI product captured investors’ attention. Because AI products require substantial computational resources, analysts considered certain semiconductor makers well positioned to benefit from continued AI growth. Late in the reporting period, a series of partnerships between chipmakers and AI companies solidified investors’ optimism. The technology hardware, storage, and peripherals industry also gained amid resilient sales of premium smartphones and rising demand in Asia. Higher revenue from services also boosted earnings, as a large and growing installed base of devices provided a significant pool of customers for advertising and subscription products.

The energy sector also contributed significantly to the Index’s return. The price of oil and natural gas surged following Russia’s invasion of Ukraine. While prices subsequently fell as markets stabilized, the relatively high average prices of energy commodities supported profitability in the oil, gas, and consumable fuels industry.

On the downside, the consumer discretionary sector detracted the most from the Index’s return, as elevated inflation drove up costs for companies and consumer spending growth tapered off. Stocks in the automobiles industry declined amid concerns about the market for electric vehicles (“EVs”) in the weakening economy. While EV sales continued to grow, production did not meet analysts’ expectations, and price discounts negatively impacted revenues. Increased competition also weighed on the industry, as more automakers expanded their EV offerings.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Information Technology

   25.6%

Health Care

   14.2   

Financials

   13.3   

Consumer Discretionary

   10.1   

Industrials

   8.9   

Communication Services

   8.0   

Consumer Staples

   7.0   

Energy

   4.7   

Real Estate

   2.8   

Utilities

   2.8   

Materials

   2.6   

 

(a) 

Excludes money market funds.

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)

Apple Inc.

   6.8%

Microsoft Corp.

   6.2   

Amazon.com, Inc.

   2.5   

NVIDIA Corp.

   1.8   

Alphabet, Inc., Class A

   1.7   

Berkshire Hathaway, Inc., Class B

   1.6   

Alphabet, Inc., Class C, NVS

   1.5   

Meta Platforms, Inc., Class A

   1.4   

Exxon Mobil Corp.

   1.3   

UnitedHealth Group, Inc.

   1.2   
 

 

 

10  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of April 30, 2023    iShares® Morningstar Value ETF

 

Investment Objective

The iShares Morningstar Value ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® US Large-Mid Cap Broad Value IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
    

 

1 Year

     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     2.53 %      8.02 %      8.97 %      2.53 %      47.09 %      135.99 % 

Fund Market

     2.49       8.02       8.97       2.49       47.09       136.17  

Index

     2.56       8.19       9.18       2.56       48.25       140.78  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar US Large-Mid Cap Broad Value IndexSM.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
                                                            
 

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		            

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		       

 Annualized
Expense
Ratio		  
 
 
  $      1,000.00          $      1,050.20          $          0.20               $      1,000.00          $      1,024.60          $      0.20                0.04 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

   11

Fund Summary as of April 30, 2023 (continued)    iShares® Morningstar Value ETF

 

Portfolio Management Commentary

Value-oriented large- and mid-capitalization U.S. stocks gained for the reporting period, as slower economic growth and elevated inflation and interest rates precipitated a shift toward larger, less expensive stocks and away from smaller and less liquid stocks. The energy sector contributed the most to the Index’s return. The price of oil and natural gas surged following Russia’s invasion of Ukraine. While prices subsequently fell as markets stabilized, the relatively high average prices of energy commodities supported profitability in the oil, gas, and consumable fuels industry. A sharp reduction in Russian gas exports to Europe benefited U.S. gas producers, who increased their European exports.

The communication services sector also contributed to the Index’s return amid strength in the interactive media and services industry. Cost-cutting measures reassured investors who were concerned about bloated expenses. New investments in artificial intelligence technologies drove optimism about improved advertising services, and active user growth helped reverse declining revenues.

The consumer discretionary sector also contributed. Periodic rebalancing of the Index meant that the Index added to a position in the internet and direct marketing retail industry, which subsequently advanced amid an increased focus on managing costs.

On the downside, the information technology sector detracted from the Index’s performance. Periodic rebalancing of the Index meant that the Index held a technology hardware, storage, and peripherals stock for an interval when it was declining and subsequently sold the stock. During this interval, the stock faced headwinds due to production disruptions in Chinese factories following the implementation of COVID-19 protocols.

The real estate sector also detracted, particularly equity real estate investment trusts (“REITs”). REITs typically take on substantial debt to finance the purchase of the properties they manage, and higher interest rates made financing more expensive.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Financials

   18.2%

Health Care

   15.1   

Industrials

   10.8   

Consumer Staples

   10.5   

Communication Services

   9.6   

Information Technology

   8.8   

Consumer Discretionary

   8.5   

Energy

   7.3   

Utilities

   5.0   

Materials

   3.6   

Real Estate

   2.6   

 

(a) 

Excludes money market funds.

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)

Berkshire Hathaway, Inc., Class B

   3.3%

Meta Platforms, Inc., Class A

   2.9   

Exxon Mobil Corp.

   2.7   

Amazon.com, Inc.

   2.5   

Johnson & Johnson

   2.4   

JPMorgan Chase & Co.

   2.2   

Procter & Gamble Co.

   2.0   

AbbVie, Inc.

   1.5   

Alphabet, Inc., Class A

   1.4   

Alphabet, Inc., Class C, NVS

   1.2   
 

 

 

12  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

A B O U T   F U N D   P E R F O R M A N C E   /   D I S C L O S U R E   O F   E X P E N S E S

   13

Schedule of Investments

April 30, 2023

   

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

    
Aerospace & Defense — 0.5%            

Textron, Inc.

     10,386     $ 695,239  

TransDigm Group, Inc.

     2,852       2,181,780  
   

 

 

  
      2,877,019  
Air Freight & Logistics — 0.7%            

CH Robinson Worldwide, Inc.(a)

     10,060       1,014,752  

Expeditors International of Washington, Inc.(a)

     21,747       2,475,679  
   

 

 

  
      3,490,431  
Automobile Components — 0.6%            

Aptiv PLC(b)

     14,895       1,532,100  

BorgWarner, Inc.

     21,514       1,035,469  

Lear Corp.

     4,548       580,597  
   

 

 

  
      3,148,166  
Banks — 4.0%            

BOK Financial Corp.

     3,948       331,119  

Citizens Financial Group, Inc.

     67,327       2,083,097  

Comerica, Inc.

     12,196       528,941  

Commerce Bancshares, Inc.

     10,744       600,053  

Cullen/Frost Bankers, Inc.

     5,568       613,872  

East West Bancorp, Inc.

     19,315       998,392  

Fifth Third Bancorp

     93,380       2,446,556  

First Citizens BancShares, Inc., Class A

     850       856,103  

First Horizon Corp.

     73,324       1,286,836  

Huntington Bancshares, Inc.

     197,210       2,208,752  

KeyCorp

     127,678       1,437,654  

M&T Bank Corp.

     23,131       2,909,880  

Regions Financial Corp.

     127,628       2,330,487  

Webster Financial Corp.

     23,864       890,127  

Western Alliance Bancorp

     9,183       340,873  

Zions Bancorp N.A

     20,572       573,136  
   

 

 

  
          20,435,878  
Beverages — 0.3%            

Molson Coors Beverage Co., Class B

     25,631       1,524,532  
   

 

 

  
Biotechnology — 1.6%            

Biogen, Inc.(b)

     19,677       5,986,334  

Horizon Therapeutics PLC(b)

     12,740       1,416,178  

United Therapeutics Corp.(b)

     4,206       967,927  
   

 

 

  
      8,370,439  
Broadline Retail — 1.1%            

Coupang, Inc., Class A(b)

     139,561       2,339,042  

eBay, Inc.

     74,151       3,442,831  
   

 

 

  
      5,781,873  
Building Products — 2.5%            

A O Smith Corp.

     9,618       656,813  

Allegion PLC

     6,587       727,732  

Builders FirstSource, Inc.(b)

     12,187       1,154,962  

Carlisle Cos., Inc.

     2,380       513,723  

Carrier Global Corp.

     77,234       3,229,926  

Fortune Brands Innovations, Inc.

     17,577       1,137,056  

Lennox International, Inc.

     2,273       640,782  

Masco Corp.

     30,813       1,648,804  

Owens Corning

     8,719       931,276  

Trane Technologies PLC

     13,414       2,492,455  
   

 

 

  
      13,133,529  
Capital Markets — 4.4%            

Ameriprise Financial, Inc.

     8,599       2,623,727  

Bank of New York Mellon Corp.

     100,505       4,280,508  

Carlyle Group, Inc.

     29,968       908,929  
Security   Shares     Value  
Capital Markets (continued)  

Coinbase Global, Inc., Class A(a)(b)

     21,778     $ 1,171,439  

Franklin Resources, Inc.

     39,076       1,050,363  

Invesco Ltd.

     62,328       1,067,679  

Jefferies Financial Group, Inc.

     24,804       794,472  

Nasdaq, Inc.

     24,247       1,342,556  

Northern Trust Corp.

     28,481       2,226,075  

SEI Investments Co.

     6,383       376,022  

State Street Corp.

     47,691       3,446,152  

T Rowe Price Group, Inc.

     30,649       3,442,802  
   

 

 

  
      22,730,724  
Chemicals — 5.6%            

Celanese Corp., Class A

     13,649       1,450,070  

CF Industries Holdings, Inc.

     26,817       1,919,561  

Dow, Inc.

     96,317       5,239,645  

DuPont de Nemours, Inc.

     62,599       4,364,402  

Eastman Chemical Co.

     16,262       1,370,399  

FMC Corp.

     11,076       1,368,772  

International Flavors & Fragrances, Inc.

     34,839       3,377,990  

LyondellBasell Industries NV, Class A

     22,512       2,129,860  

Mosaic Co.

     46,535       1,994,025  

Olin Corp.

     6,811       377,329  

PPG Industries, Inc.

     32,114       4,504,310  

RPM International, Inc.

     6,712       550,585  

Westlake Corp.

     2,262       257,370  
   

 

 

  
      28,904,318  
Communications Equipment — 0.4%            

F5, Inc.(b)

     4,726       634,985  

Juniper Networks, Inc.

     44,325       1,336,399  
   

 

 

  
      1,971,384  
Construction & Engineering — 0.4%            

AECOM

     9,954       826,680  

Quanta Services, Inc.

     7,708       1,307,585  
   

 

 

  
      2,134,265  
Consumer Finance — 0.8%            

Ally Financial, Inc.

     41,033       1,082,450  

Discover Financial Services

     14,263       1,475,793  

Synchrony Financial

     59,762       1,763,577  
   

 

 

  
      4,321,820  
Consumer Staples Distribution & Retail — 1.9%        

Albertsons Cos., Inc., Class A

     22,010       460,009  

BJ’s Wholesale Club Holdings, Inc.(b)

     10,695       816,777  

Casey’s General Stores, Inc.

     2,058       470,912  

Kroger Co.

     89,009       4,328,508  

U.S. Foods Holding Corp.(b)

     13,951       535,718  

Walgreens Boots Alliance, Inc.

     97,819       3,448,120  
   

 

 

  
          10,060,044  
Containers & Packaging — 2.3%            

Amcor PLC

     202,581       2,222,314  

AptarGroup, Inc.

     4,747       562,567  

Avery Dennison Corp.

     5,325       929,106  

Ball Corp.

     42,901       2,281,475  

Crown Holdings, Inc.

     9,272       795,352  

International Paper Co.

     48,636       1,610,338  

Packaging Corp. of America

     12,653       1,711,445  

Sealed Air Corp.

     12,983       623,054  

Westrock Co.

     34,931       1,045,485  
   

 

 

  
      11,781,136  
Distributors — 0.7%            

Genuine Parts Co.

     10,903       1,835,084  
 

 

 

14  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Distributors (continued)  

LKQ Corp.

     22,967     $ 1,325,885  

Pool Corp.

     1,853       650,996  
   

 

 

  
      3,811,965  
Diversified Consumer Services — 0.1%            

ADT, Inc.

     28,950       193,965  

Service Corp. International

     7,986       560,537  
   

 

 

  
      754,502  
Diversified REITs — 0.4%            

WP Carey, Inc.

     28,788       2,136,070  
   

 

 

  
Diversified Telecommunication Services — 0.1%  

Lumen Technologies, Inc.

     126,333       299,409  
   

 

 

  
Electric Utilities — 6.3%            

Alliant Energy Corp.

     34,321       1,892,460  

Avangrid, Inc.

     9,566       385,127  

Edison International

     52,180       3,840,448  

Entergy Corp.

     27,804       2,991,154  

Evergy, Inc.

     31,380       1,949,012  

Eversource Energy

     47,594       3,693,770  

FirstEnergy Corp.

     74,220       2,953,956  

NRG Energy, Inc.

     14,113       482,241  

OGE Energy Corp.

     27,431       1,029,760  

PG&E Corp.(b)

     220,000       3,764,200  

Pinnacle West Capital Corp.

     15,427       1,210,403  

PPL Corp.

     100,612       2,889,577  

Xcel Energy, Inc.

     74,777       5,227,660  
   

 

 

  
          32,309,768  
Electrical Equipment — 0.7%            

Generac Holdings, Inc.(a)(b)

     4,396       449,359  

Regal Rexnord Corp.

     9,018       1,173,783  

Rockwell Automation, Inc.

     6,258       1,773,580  
   

 

 

  
      3,396,722  
Electronic Equipment, Instruments & Components — 1.3%  

Arrow Electronics, Inc.(b)

     7,990       914,296  

Corning, Inc.

     71,701       2,381,907  

Flex Ltd.(a)(b)

     39,993       822,656  

Jabil, Inc.

     7,029       549,316  

TD SYNNEX Corp.

     5,720       509,309  

Trimble, Inc.(b)

     14,164       667,124  

Zebra Technologies Corp., Class A(b)

     2,697       776,817  
   

 

 

  
      6,621,425  
Energy Equipment & Services — 0.9%            

Baker Hughes Co., Class A

     56,047       1,638,814  

Halliburton Co.

     60,602       1,984,715  

NOV, Inc.

     53,838       901,787  
   

 

 

  
      4,525,316  
Entertainment — 0.5%            

Electronic Arts, Inc.

     14,762       1,878,908  

Liberty Media Corp. - Liberty Formula One, Class A(b)

    1,359       88,036  

Liberty Media Corp. - Liberty Formula One, Class C, NVS(b)

     11,844       855,018  
   

 

 

  
      2,821,962  
Financial Services — 1.3%            

Apollo Global Management, Inc.

     24,583       1,558,316  

Equitable Holdings, Inc.

     47,181       1,226,234  

FleetCor Technologies, Inc.(b)

     5,042       1,078,585  

Global Payments, Inc.

     19,964       2,250,142  

WEX, Inc.(b)

     2,465       437,168  
   

 

 

  
      6,550,445  
Security   Shares     Value  
Food Products — 3.2%  

Bunge Ltd.

     20,479     $ 1,916,835  

Campbell Soup Co.

     27,450       1,490,535  

Conagra Brands, Inc.

     65,127       2,472,221  

Darling Ingredients, Inc.(b)

     13,397       798,059  

Hormel Foods Corp.

     19,052       770,463  

J M Smucker Co.

     14,574       2,250,371  

Kellogg Co.

     34,975       2,440,206  

McCormick & Co., Inc., NVS

     19,894       1,747,688  

Tyson Foods, Inc., Class A

     39,027       2,438,797  
   

 

 

  
      16,325,175  
Gas Utilities — 0.4%            

Atmos Energy Corp.

     12,078       1,378,583  

UGI Corp.

     28,777       974,965  
   

 

 

  
      2,353,548  
Ground Transportation — 0.3%            

Avis Budget Group, Inc.(b)

     3,422       604,565  

Hertz Global Holdings, Inc.(b)

     12,846       214,271  

Knight-Swift Transportation Holdings, Inc.

     13,553       763,305  

U-Haul Holding Co.

     929       56,725  
   

 

 

  
      1,638,866  
Health Care Equipment & Supplies — 2.3%            

Baxter International, Inc.

     68,959       3,287,965  

Cooper Cos., Inc.

     2,696       1,028,389  

DENTSPLY SIRONA, Inc.

     29,413       1,233,287  

Hologic, Inc.(b)

     14,629       1,258,241  

Teleflex, Inc.

     3,414       930,383  

Zimmer Biomet Holdings, Inc.

     28,675       3,969,767  
   

 

 

  
          11,708,032  
Health Care Providers & Services — 3.2%            

AmerisourceBergen Corp.

     22,109       3,688,887  

Cardinal Health, Inc.

     35,204       2,890,248  

Chemed Corp.

     1,071       590,389  

DaVita, Inc.(b)

     7,493       677,067  

Henry Schein, Inc.(a)(b)

     18,543       1,498,460  

Laboratory Corp. of America Holdings

     12,107       2,744,778  

Molina Healthcare, Inc.(b)

     3,036       904,394  

Quest Diagnostics, Inc.

     15,170       2,105,748  

Universal Health Services, Inc., Class B

     8,793       1,322,027  
   

 

 

  
      16,421,998  
Health Care REITs — 1.4%            

Healthpeak Properties, Inc.

     35,777       786,021  

Medical Properties Trust, Inc.

     81,670       716,246  

Omega Healthcare Investors, Inc.

     32,122       859,585  

Ventas, Inc.

     36,302       1,744,311  

Welltower, Inc.

     39,998       3,168,641  
   

 

 

  
      7,274,804  
Hotels, Restaurants & Leisure — 2.5%            

Aramark

     20,961       727,347  

Carnival Corp.(a)(b)

     0       —  

Carnival Corp.(b)

     136,638       1,258,436  

Darden Restaurants, Inc.

     9,779       1,485,723  

Domino’s Pizza, Inc.

     1,642       521,286  

Expedia Group, Inc.(b)

     20,211       1,899,026  

Las Vegas Sands Corp.(b)

     18,236       1,164,369  

Norwegian Cruise Line Holdings Ltd.(a)(b)

     57,782       771,390  

Royal Caribbean Cruises Ltd.(b)

     14,203       929,302  

Wyndham Hotels & Resorts, Inc.

     4,202       286,660  

Wynn Resorts Ltd.(b)

     14,108       1,612,262  

Yum! Brands, Inc.

     15,479       2,176,038  
   

 

 

  
      12,831,839  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   15

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Durables — 2.9%            

DR Horton, Inc.

     42,699     $ 4,689,204  

Garmin Ltd.

     20,959       2,057,545  

Lennar Corp., Class A

     22,926       2,586,282  

Lennar Corp., Class B

     1,313       128,438  

NVR, Inc.(b)

     413       2,411,920  

PulteGroup, Inc.

     30,846       2,071,309  

Whirlpool Corp.

     7,471       1,042,877  
   

 

 

  
      14,987,575  
Household Products — 0.6%            

Church & Dwight Co., Inc.

     18,380       1,785,065  

Clorox Co.

     6,830       1,131,185  
   

 

 

  
      2,916,250  
Independent Power and Renewable Electricity Producers — 0.6%  

AES Corp.

     91,278       2,159,638  

Vistra Corp.

     31,027       740,304  
   

 

 

  
      2,899,942  
Industrial REITs — 0.2%            

Americold Realty Trust, Inc.

     36,916       1,092,344  
   

 

 

  
Insurance — 5.0%            

Allstate Corp.

     35,937       4,160,067  

American Financial Group, Inc.

     5,771       708,275  

Arch Capital Group Ltd.(b)

     28,407       2,132,513  

Assurant, Inc.

     5,713       703,442  

Cincinnati Financial Corp.

     14,190       1,510,384  

CNA Financial Corp.

     3,713       144,473  

Everest Re Group Ltd.

     3,639       1,375,542  

Fidelity National Financial, Inc., Class A

     36,960       1,311,710  

Globe Life, Inc.

     12,382       1,343,695  

Hartford Financial Services Group, Inc.

     43,056       3,056,545  

Lincoln National Corp.

     21,290       462,632  

Loews Corp.

     26,686       1,536,313  

Old Republic International Corp.

     37,819       955,686  

Principal Financial Group, Inc.

     31,095       2,322,485  

Reinsurance Group of America, Inc.

     9,130       1,299,382  

Unum Group

     25,629       1,081,544  

Willis Towers Watson PLC

     6,632       1,535,971  
   

 

 

  
          25,640,659  
IT Services — 1.1%            

Akamai Technologies, Inc.(a)(b)

     10,985       900,440  

Cognizant Technology Solutions Corp., Class A

     69,551       4,152,890  

DXC Technology Co.(b)

     31,216       744,502  
   

 

 

  
      5,797,832  
Leisure Products — 0.3%            

Hasbro, Inc.

     17,801       1,054,175  

Mattel, Inc.(b)

     25,303       455,454  
   

 

 

  
      1,509,629  
Life Sciences Tools & Services — 0.7%            

Avantor, Inc.(b)

     33,677       656,028  

PerkinElmer, Inc.

     17,263       2,252,649  

Waters Corp.(b)

     2,885       866,538  
   

 

 

  
      3,775,215  
Machinery — 4.5%            

AGCO Corp.

     8,485       1,051,631  

Cummins, Inc.

     19,307       4,537,917  

Dover Corp.

     9,467       1,383,697  

Fortive Corp.

     20,145       1,270,948  

Middleby Corp.(b)

     4,148       584,370  

Otis Worldwide Corp.

     35,381       3,017,999  

PACCAR, Inc.

     32,927       2,459,318  
Security   Shares     Value  
Machinery (continued)            

Parker-Hannifin Corp.

     9,132     $ 2,966,804  

Pentair PLC

     22,428       1,302,618  

Snap-on, Inc.

     7,265       1,884,614  

Stanley Black & Decker, Inc.

     20,239       1,747,435  

Westinghouse Air Brake Technologies Corp.

     9,998       976,505  
   

 

 

  
      23,183,856  
Media — 2.0%            

Fox Corp., Class A, NVS

     40,484       1,346,498  

Fox Corp., Class B

     18,793       573,938  

Interpublic Group of Cos., Inc.

     53,113       1,897,728  

Liberty Media Corp. - Liberty SiriusXM,
Class A(a)(b)

     10,285       289,009  

Liberty Media Corp. - Liberty SiriusXM, Class C, NVS(b)

     20,862       582,884  

News Corp., Class A, NVS

     52,134       918,080  

News Corp., Class B

     16,270       288,793  

Omnicom Group, Inc.

     27,699       2,508,698  

Paramount Global, Class A(a)

     1,442       38,155  

Paramount Global, Class B, NVS

     69,086       1,611,776  

Sirius XM Holdings, Inc.(a)

     46,749       177,646  
   

 

 

  
      10,233,205  
Metals & Mining — 2.7%            

Alcoa Corp.

     24,256       900,868  

Cleveland-Cliffs, Inc.(a)(b)

     70,259       1,080,584  

Newmont Corp.

     108,458       5,140,909  

Nucor Corp.

     15,318       2,269,821  

Reliance Steel & Aluminum Co.

     8,023       1,988,099  

Steel Dynamics, Inc.

     22,791       2,369,125  
   

 

 

  
          13,749,406  
Mortgage Real Estate Investment Trusts (REITs) — 0.2%  

Annaly Capital Management, Inc.

     64,123       1,281,178  
   

 

 

  
Multi-Utilities — 4.5%            

Ameren Corp.

     23,217       2,065,616  

CenterPoint Energy, Inc.

     58,522       1,783,165  

CMS Energy Corp.

     26,295       1,637,127  

Consolidated Edison, Inc.

     48,489       4,774,712  

DTE Energy Co.

     26,473       2,975,830  

NiSource, Inc.

     55,557       1,581,152  

Public Service Enterprise Group, Inc.

     68,178       4,308,850  

WEC Energy Group, Inc.

     43,102       4,145,119  
   

 

 

  
      23,271,571  
Office REITs — 0.5%            

Alexandria Real Estate Equities, Inc.

     12,128       1,506,055  

Boston Properties, Inc.

     19,582       1,044,896  
   

 

 

  
      2,550,951  
Oil, Gas & Consumable Fuels — 3.4%            

Antero Resources Corp.(a)(b)

     37,861       870,424  

APA Corp.

     20,438       753,140  

Chesapeake Energy Corp.

     14,708       1,216,058  

Coterra Energy, Inc.

     54,687       1,399,987  

Diamondback Energy, Inc.

     25,112       3,570,926  

EQT Corp.

     24,772       863,057  

HF Sinclair Corp.

     12,320       543,435  

Marathon Oil Corp.

     43,707       1,055,961  

Matador Resources Co.

     5,201       255,005  

Murphy Oil Corp.

     11,015       404,361  

ONEOK, Inc.

     61,073       3,994,785  

Ovintiv, Inc.

     16,885       609,211  

Range Resources Corp.

     17,489       462,584  
 

 

 

16  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Southwestern Energy Co.(b)

     98,078     $ 509,025  

Targa Resources Corp.

     13,306       1,005,002  
   

 

 

  
          17,512,961  
Passenger Airlines — 1.0%            

American Airlines Group, Inc.(b)

     41,828       570,534  

Delta Air Lines, Inc.(a)(b)

     45,327       1,555,169  

Southwest Airlines Co.

     37,844       1,146,295  

United Airlines Holdings, Inc.(a)(b)

     44,693       1,957,553  
   

 

 

  
      5,229,551  
Pharmaceuticals — 1.1%            

Catalent, Inc.(a)(b)

     10,993       550,969  

Jazz Pharmaceuticals PLC(b)

     8,586       1,206,076  

Organon & Co.

     34,899       859,562  

Royalty Pharma PLC, Class A

     50,661       1,780,734  

Viatris, Inc.

     165,867       1,547,539  
   

 

 

  
      5,944,880  
Professional Services — 1.8%            

Booz Allen Hamilton Holding Corp., Class A

     7,421       710,338  

Clarivate PLC(a)(b)

     31,489       278,993  

Concentrix Corp.

     3,447       332,670  

Equifax, Inc.

     5,594       1,165,678  

Genpact Ltd.

     11,226       500,118  

Jacobs Solutions, Inc.

     9,797       1,131,162  

Leidos Holdings, Inc.

     18,693       1,743,309  

Robert Half International, Inc.

     14,752       1,076,896  

SS&C Technologies Holdings, Inc.

     29,973       1,754,619  

TransUnion

     10,413       716,518  
   

 

 

  
      9,410,301  
Real Estate Management & Development — 0.6%  

CBRE Group, Inc., Class A(b)

     29,029       2,225,363  

Jones Lang LaSalle, Inc.(a)(b)

     6,509       905,011  
   

 

 

  
      3,130,374  
Residential REITs — 1.3%            

American Homes 4 Rent, Class A

     15,561       517,559  

AvalonBay Communities, Inc.

     7,690       1,387,045  

Equity LifeStyle Properties, Inc.

     8,900       613,210  

Equity Residential

     18,190       1,150,518  

Essex Property Trust, Inc.

     5,104       1,121,502  

Mid-America Apartment Communities, Inc.

     7,604       1,169,495  

UDR, Inc.

     16,843       696,121  
   

 

 

  
      6,655,450  
Retail REITs — 2.4%            

Brixmor Property Group, Inc.

     28,091       599,181  

Federal Realty Investment Trust

     4,367       431,853  

Kimco Realty Corp.

     84,597       1,623,416  

National Retail Properties, Inc.

     24,879       1,082,236  

Realty Income Corp.

     48,159       3,026,312  

Regency Centers Corp.

     12,593       773,588  

Simon Property Group, Inc.

     44,675       5,062,571  
   

 

 

  
      12,599,157  
Semiconductors & Semiconductor Equipment — 1.9%  

First Solar, Inc.(b)

     13,548       2,473,594  

Microchip Technology, Inc.

     44,240       3,229,077  

Qorvo, Inc.(b)

     13,619       1,254,037  

Skyworks Solutions, Inc.

     14,882       1,576,004  

Teradyne, Inc.

     8,357       763,663  

Wolfspeed, Inc.(a)(b)

     9,414       438,222  
   

 

 

  
      9,734,597  
Security   Shares     Value  
Software — 0.3%            

Gen Digital, Inc.

     77,557     $ 1,370,432  
   

 

 

  
Specialized REITs — 2.4%            

CubeSmart

     10,898       495,750  

Digital Realty Trust, Inc.

     18,425       1,826,839  

Gaming & Leisure Properties, Inc.

     24,196       1,258,192  

Iron Mountain, Inc.

     24,411       1,348,464  

Lamar Advertising Co., Class A

     8,232       869,958  

Life Storage, Inc.

     4,676       628,361  

VICI Properties, Inc.

     92,278       3,131,915  

Weyerhaeuser Co.

     100,131       2,994,918  
   

 

 

  
      12,554,397  
Specialty Retail — 1.8%            

Advance Auto Parts, Inc.

     8,124       1,019,806  

Bath & Body Works, Inc.

     31,145       1,093,190  

Best Buy Co., Inc.

     26,920       2,006,078  

Burlington Stores, Inc.(b)

     4,031       777,217  

CarMax, Inc.(a)(b)

     21,619       1,513,979  

GameStop Corp., Class A(a)(b)

     34,470       664,926  

Murphy U.S.A., Inc.

     1,761       484,680  

Penske Automotive Group, Inc.(a)

     3,418       473,666  

Williams-Sonoma, Inc.

     9,120       1,103,885  
   

 

 

  
      9,137,427  
Technology Hardware, Storage & Peripherals — 2.3%        

Dell Technologies, Inc., Class C

     33,037       1,436,779  

Hewlett Packard Enterprise Co.

     175,151       2,508,162  

HP, Inc.

     118,098       3,508,692  

NetApp, Inc.

     19,608       1,233,147  

Seagate Technology Holdings PLC

     26,261       1,543,359  

Western Digital Corp.(b)

     43,673       1,504,098  
   

 

 

  
      11,734,237  
Textiles, Apparel & Luxury Goods — 0.5%            

Tapestry, Inc.

     32,189       1,313,633  

VF Corp.

     45,381       1,066,907  
   

 

 

  
      2,380,540  
Water Utilities — 0.4%            

American Water Works Co., Inc.

     10,047       1,489,468  

Essential Utilities, Inc.

     14,199       606,297  
   

 

 

  
      2,095,765  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $491,005,295)

           514,827,086  
   

 

 

  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   17

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Securities

    
Money Market Funds — 2.5%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.02%(c)(d)(e)

     11,871,132     $ 11,874,694  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(c)(d)

     872,368       872,368  
   

 

 

  

Total Short-Term Securities — 2.5%
(Cost: $12,741,518)

       12,747,062  
   

 

 

  

Total Investments — 102.2%
(Cost: $503,746,813)

       527,574,148  

Liabilities in Excess of Other Assets — (2.2)%

       (11,359,289 ) 
   

 

 

  

Net Assets — 100.0%

     $     516,214,859  
   

 

 

  

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

    

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

  
Affiliated Issuer    Value at
04/30/22		      Purchases
at Cost		      Proceeds
from Sale		      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
04/30/23		      Shares
Held at
04/30/23		      Income     

Capital

Gain
Distributions
from Underlying
Funds

  

 

  

BlackRock Cash Funds: Institutional, SL Agency Shares

    $   10,213,576      $   1,658,740 (a)     $ —      $ (643 )     $ 3,021      $ 11,874,694        11,871,132      $   143,732 (b)     $ —  

BlackRock Cash Funds: Treasury, SL Agency Shares

      865,000        7,368 (a)       —        —        —        872,368        872,368        28,072        —  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  
            $ (643 )     $ 3,021      $     12,747,062         $ 171,804      $                 —  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  

 

(a) 

Represents net amount purchased (sold).

(b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

  
Description    Number of
Contracts		      Expiration
Date		      Notional
Amount
(000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

 

  

Long Contracts

            

E-Mini Utilities Select Sector Index

      8        06/16/23      $ 559      $ 172  

S&P Mid 400 E-Mini Index

      3        06/16/23        750        6,962  
           

 

 

  
            $ 7,134  
           

 

 

  

 

 

18  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Mid-Cap Value ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

  
     Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

 

  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 7,134      $ —      $ —      $ —      $   7,134  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

  
     Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

 

  

Net Realized Gain (Loss) from

                     

Futures contracts

    $ —      $ —      $   (61,860 )     $ —      $ —      $ —      $   (61,860 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                     

Futures contracts

    $ —      $ —      $ 40,990      $ —      $ —      $ —      $ 40,990  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

   

Average notional value of contracts — long

    $ 1,355,943  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
     Level 1        Level 2        Level 3        Total  

 

  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 514,827,086        $ —        $ —        $ 514,827,086  

Short-Term Securities

                  

Money Market Funds

      12,747,062          —          —          12,747,062  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $         527,574,148        $                 —        $                 —        $         527,574,148  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Equity Contracts

    $ 7,134        $ —        $ —        $ 7,134  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   19

Schedule of Investments  

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

    
Aerospace & Defense — 1.6%            

AAR Corp.(a)

     1,993     $ 105,191  

Aerojet Rocketdyne Holdings, Inc.(a)

     4,562       257,342  

AeroVironment, Inc.(a)

     1,510       152,042  

AerSale Corp.(a)(b)

     999       16,164  

Archer Aviation, Inc., Class A(a)(b)

     8,418       16,668  

BWX Technologies, Inc.

     5,485       354,221  

Cadre Holdings, Inc.

     904       19,038  

Curtiss-Wright Corp.

     2,315       393,156  

Ducommun, Inc.(a)

     679       33,950  

Hexcel Corp.

     5,069       365,373  

Kaman Corp.

     1,668       36,813  

Kratos Defense & Security Solutions, Inc.(a)

     7,616       98,246  

Maxar Technologies, Inc.

     4,504       237,451  

Mercury Systems, Inc.(a)

     3,513       167,465  

Moog, Inc., Class A

     1,742       156,972  

National Presto Industries, Inc.

     331       22,515  

Parsons Corp.(a)

     2,014       87,609  

Rocket Lab U.S.A., Inc., Class A(a)(b)

     13,260       51,979  

Spirit AeroSystems Holdings, Inc., Class A

     6,331       188,411  

Triumph Group, Inc.(a)

     3,871       41,845  

V2X, Inc.(a)

     653       28,210  

Virgin Galactic Holdings, Inc., Class A(a)

     14,403       52,427  

Woodward, Inc.

     3,610       346,632  
   

 

 

  
          3,229,720  
Air Freight & Logistics — 0.4%            

Air Transport Services Group, Inc.(a)(b)

     3,442       69,907  

Forward Air Corp.

     1,605       169,344  

GXO Logistics, Inc.(a)

     7,163       380,570  

Hub Group, Inc., Class A(a)

     1,973       148,764  
   

 

 

  
      768,585  
Automobile Components — 1.5%            

Adient PLC(a)

     5,745       212,220  

American Axle & Manufacturing Holdings, Inc.(a)

     6,884       49,221  

Autoliv, Inc.

     4,678       401,419  

Dana, Inc.

     7,729       114,312  

Dorman Products, Inc.(a)

     1,700       146,472  

Fox Factory Holding Corp.(a)

     2,544       282,053  

Garrett Motion, Inc.(a)(b)

     3,470       28,662  

Gentex Corp.

     14,143       390,205  

Gentherm, Inc.(a)

     2,009       119,837  

Goodyear Tire & Rubber Co.(a)

     16,989       181,273  

Holley, Inc.(a)

     2,976       7,172  

LCI Industries

     1,537       173,620  

Luminar Technologies, Inc., Class A(a)(b)

     14,166       85,279  

Mobileye Global, Inc., Class A(a)(b)

     2,844       107,048  

Modine Manufacturing Co.(a)

     3,109       65,009  

Patrick Industries, Inc.

     1,307       89,700  

QuantumScape Corp., Class A(a)(b)

     16,690       116,830  

Solid Power, Inc., Class A(a)(b)

     6,694       15,195  

Standard Motor Products, Inc.

     1,136       40,907  

Stoneridge, Inc.(a)(b)

     1,633       30,750  

Visteon Corp.(a)

     1,702       238,944  

XPEL, Inc.(a)(b)

     1,197       87,453  
   

 

 

  
      2,983,581  
Automobiles — 0.4%            

Fisker, Inc., Class A(a)(b)

     9,597       61,805  

Harley-Davidson, Inc.

     8,012       297,245  

Thor Industries, Inc.

     3,231       255,314  
Security   Shares     Value  
Automobiles (continued)            

Winnebago Industries, Inc.

     1,853     $     107,733  

Workhorse Group, Inc.(a)(b)

     9,705       9,144  
   

 

 

  
      731,241  
Banks — 6.6%            

1st Source Corp.

     1,061       44,222  

Amalgamated Financial Corp.

     1,224       19,927  

Amerant Bancorp, Inc., Class A

     1,667       31,006  

Ameris Bancorp

     3,932       131,722  

Arrow Financial Corp.

     1,093       23,598  

Associated Banc-Corp.

     9,452       168,529  

Atlantic Union Bankshares Corp.

     4,565       130,650  

Axos Financial, Inc.(a)(b)

     3,217       130,835  

Banc of California, Inc.

     3,601       40,871  

BancFirst Corp.

     1,056       84,364  

Bancorp, Inc.(a)

     2,833       90,401  

Bank First Corp.(b)

     450       30,775  

Bank of Hawaii Corp.

     2,437       118,024  

Bank of Marin Bancorp

     982       17,313  

Bank OZK

     6,718       239,967  

BankUnited, Inc.

     4,284       96,604  

Banner Corp.

     1,687       84,215  

Bar Harbor Bankshares

     1,023       25,370  

Berkshire Hills Bancorp, Inc.

     2,458       52,282  

Bridgewater Bancshares, Inc.(a)(b)

     1,283       12,766  

Brookline Bancorp, Inc.

     3,486       33,256  

Business First Bancshares, Inc.

     1,521       23,454  

Byline Bancorp, Inc.

     1,588       30,728  

Cadence Bank

     9,893       200,036  

Cambridge Bancorp

     522       26,961  

Camden National Corp.

     1,032       32,972  

Capital City Bank Group, Inc.

     980       29,851  

Capitol Federal Financial, Inc.

     7,999       49,594  

Capstar Financial Holdings, Inc.

     1,228       16,431  

Carter Bankshares, Inc.(a)

     1,602       20,586  

Cathay General Bancorp

     4,628       147,494  

Central Pacific Financial Corp.

     531       8,432  

City Holding Co.

     825       75,232  

CNB Financial Corp.

     1,513       28,384  

Coastal Financial Corp.(a)

     704       25,520  

Columbia Banking System, Inc.

     12,661       270,439  

Columbia Financial, Inc.(a)(b)

     2,057       34,516  

Community Bank System, Inc.

     3,105       155,126  

Community Trust Bancorp, Inc.

     1,049       37,774  

ConnectOne Bancorp, Inc.

     2,226       35,126  

CrossFirst Bankshares, Inc.(a)

     2,734       27,422  

Customers Bancorp, Inc.(a)

     1,796       39,225  

CVB Financial Corp.

     7,715       115,494  

Dime Community Bancshares, Inc.

     1,983       40,850  

Eagle Bancorp, Inc.

     1,806       45,331  

Eastern Bankshares, Inc.

     9,764       113,751  

Enterprise Financial Services Corp.

     2,368       101,256  

Equity Bancshares, Inc., Class A

     922       21,713  

Farmers & Merchants Bancorp, Inc.

     807       18,400  

Farmers National Banc Corp.

     2,241       26,197  

FB Financial Corp.

     2,246       66,100  

First Bancorp

     2,396       73,749  

First BanCorp

     9,988       117,359  

First Bancshares, Inc.

     1,871       46,962  

First Busey Corp.

     3,378       61,412  

First Commonwealth Financial Corp.

     5,575       69,576  

First Community Bankshares, Inc.

     1,009       23,621  

First Financial Bancorp

     5,250       108,675  
 

 

 

20  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Banks (continued)            

First Financial Bankshares, Inc.

     7,864     $     230,101  

First Financial Corp.

     803       27,744  

First Foundation, Inc.

     3,095       19,468  

First Hawaiian, Inc.

     7,821       149,459  

First Interstate BancSystem, Inc., Class A

     5,432       139,005  

First Merchants Corp.

     3,753       109,513  

First Mid Bancshares, Inc.

     1,213       31,975  

First of Long Island Corp.

     1,465       17,141  

Flushing Financial Corp.

     1,944       23,386  

FNB Corp.

     22,226       255,154  

Fulton Financial Corp.

     10,380       123,833  

German American Bancorp, Inc.

     2,062       59,942  

Glacier Bancorp, Inc.

     6,695       222,475  

Great Southern Bancorp, Inc.

     629       32,004  

Greene County Bancorp, Inc.

     390       8,015  

Hancock Whitney Corp.

     5,227       190,890  

Hanmi Financial Corp.

     1,167       18,859  

HarborOne Bancorp, Inc.

     2,820       30,315  

Heartland Financial U.S.A., Inc.

     2,520       82,051  

Heritage Commerce Corp.

     4,006       34,051  

Heritage Financial Corp.

     1,430       25,182  

Hilltop Holdings, Inc.

     2,872       89,089  

Hingham Institution For Savings

     100       19,456  

Home BancShares, Inc.

     11,571       251,901  

HomeStreet, Inc.

     1,070       10,443  

Hope Bancorp, Inc.

     5,422       49,340  

Horizon Bancorp, Inc.

     2,400       25,272  

Independent Bank Corp.

     2,573       144,088  

Independent Bank Corp.

     1,516       27,015  

Independent Bank Group, Inc.

     2,184       79,454  

International Bancshares Corp.

     3,235       138,037  

John Marshall Bancorp, Inc.

     686       12,499  

Kearny Financial Corp.

     4,148       32,313  

Lakeland Bancorp, Inc.

     4,291       61,533  

Lakeland Financial Corp.

     1,551       78,589  

Live Oak Bancshares, Inc.

     2,023       47,662  

Mercantile Bank Corp.

     1,091       30,613  

Metrocity Bankshares, Inc.

     1,165       19,048  

Metropolitan Bank Holding Corp.(a)

     700       22,463  

Midland States Bancorp, Inc.

     1,479       29,580  

MidWestOne Financial Group, Inc.

     1,014       20,990  

National Bank Holdings Corp., Class A

     2,053       65,285  

NBT Bancorp, Inc.

     2,022       65,189  

New York Community Bancorp, Inc., Class A

     41,247       440,930  

Nicolet Bankshares, Inc.(a)(b)

     838       48,026  

Northfield Bancorp, Inc.

     2,668       27,801  

Northwest Bancshares, Inc.

     6,509       76,090  

OceanFirst Financial Corp.

     3,869       61,904  

OFG Bancorp

     2,383       60,933  

Old National Bancorp

     17,870       239,637  

Old Second Bancorp, Inc.

     2,552       31,364  

Origin Bancorp, Inc.

     1,878       55,270  

Pacific Premier Bancorp, Inc.

     5,451       121,230  

PacWest Bancorp

     7,064       71,700  

Park National Corp.

     862       93,372  

Pathward Financial, Inc.

     1,555       69,244  

Peapack-Gladstone Financial Corp.

     1,131       30,039  

Peoples Bancorp, Inc.

     1,953       50,895  

Pinnacle Financial Partners, Inc.

     4,644       251,844  

Popular, Inc.

     4,369       262,184  

Premier Financial Corp.

     2,258       37,505  

Prosperity Bancshares, Inc.

     5,585       349,733  
Security   Shares     Value  
Banks (continued)            

Provident Financial Services, Inc.

     4,581     $ 80,076  

QCR Holdings, Inc.

     1,096       45,374  

RBB Bancorp

     1,041       12,950  

Republic Bancorp, Inc., Class A

     588       23,108  

S&T Bancorp, Inc.

     2,069       56,960  

Sandy Spring Bancorp, Inc.

     2,817       63,326  

Seacoast Banking Corp. of Florida

     5,016       111,305  

ServisFirst Bancshares, Inc.

     2,967       149,833  

Shore Bancshares, Inc.

     1,229       16,321  

Simmons First National Corp., Class A

     6,638       110,921  

SmartFinancial, Inc.

     1,155       24,879  

South Plains Financial, Inc.

     913       18,744  

Southern Missouri Bancorp, Inc.

     627       22,748  

Southside Bancshares, Inc.

     1,959       62,159  

SouthState Corp.

     4,599       317,239  

Stellar Bancorp, Inc.

     2,751       63,108  

Stock Yards Bancorp, Inc.

     1,815       88,209  

Synovus Financial Corp.

     8,812       271,410  

Texas Capital Bancshares, Inc.(a)

     2,978       149,644  

Tompkins Financial Corp.

     816       47,834  

Towne Bank

     4,340       102,815  

TriCo Bancshares

     2,147       76,884  

Triumph Financial, Inc.(a)

     1,243       64,586  

TrustCo Bank Corp.

     786       23,454  

Trustmark Corp.

     3,772       90,113  

UMB Financial Corp.

     2,647       168,376  

United Bankshares, Inc.

     8,081       267,724  

United Community Banks, Inc.

     6,324       157,468  

Univest Financial Corp.

     2,009       40,421  

Valley National Bancorp

     25,752       241,554  

Veritex Holdings, Inc.

     3,247       55,881  

Washington Federal, Inc.

     3,982       111,655  

Washington Trust Bancorp, Inc.

     1,168       32,832  

WesBanco, Inc.

     3,714       98,867  

Westamerica BanCorp

     1,491       60,400  

Wintrust Financial Corp.

     3,737       255,499  

WSFS Financial Corp.

     3,344       117,608  
   

 

 

  
        13,204,854  
Beverages — 0.4%            

Boston Beer Co., Inc., Class A, NVS(a)

     568       180,346  

Celsius Holdings, Inc.(a)(b)

     2,428       232,044  

Coca-Cola Consolidated, Inc.

     279       164,459  

Duckhorn Portfolio, Inc.(a)

     2,518       38,022  

MGP Ingredients, Inc.(b)

     939       92,660  

National Beverage Corp.(a)

     1,390       69,083  

Vita Coco Co., Inc.(a)

     1,423       30,808  
   

 

 

  
      807,422  
Biotechnology — 5.7%            

2seventy bio, Inc.(a)

     2,252       21,417  

ACADIA Pharmaceuticals, Inc.(a)

     7,223       154,067  

Adicet Bio, Inc.(a)(b)

     1,844       10,769  

ADMA Biologics, Inc.(a)(b)

     12,321       41,275  

Agenus, Inc.(a)

     16,382       24,737  

Agios Pharmaceuticals, Inc.(a)

     3,324       76,020  

Akero Therapeutics, Inc.(a)

     1,889       84,514  

Alector, Inc.(a)

     3,615       23,859  

Alkermes PLC(a)

     9,916       283,102  

Allogene Therapeutics, Inc.(a)(b)

     5,387       29,251  

ALX Oncology Holdings, Inc.(a)(b)

     1,300       7,722  

Amicus Therapeutics, Inc.(a)

     15,010       173,215  

AnaptysBio, Inc.(a)

     1,221       25,421  

Anavex Life Sciences Corp.(a)(b)

     4,735       38,543  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   21

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Apellis Pharmaceuticals, Inc.(a)

     5,664     $     472,547  

Arcellx, Inc.(a)

     1,675       71,489  

Arcturus Therapeutics Holdings, Inc.(a)(b)

     1,465       38,998  

Arcus Biosciences, Inc.(a)(b)

     3,201       57,138  

Arcutis Biotherapeutics, Inc.(a)(b)

     2,368       32,773  

Arrowhead Pharmaceuticals, Inc.(a)

     6,516       230,732  

Atara Biotherapeutics, Inc.(a)

     5,774       15,648  

Aurinia Pharmaceuticals, Inc.(a)

     8,616       96,930  

Avid Bioservices, Inc.(a)(b)

     3,783       68,283  

Avidity Biosciences, Inc.(a)

     4,039       50,084  

Beam Therapeutics, Inc.(a)

     3,567       109,543  

Biohaven Ltd.(a)

     3,919       51,261  

Blueprint Medicines Corp.(a)

     3,596       183,576  

Bridgebio Pharma, Inc.(a)

     7,020       101,930  

C4 Therapeutics, Inc.(a)

     2,551       7,704  

CareDx, Inc.(a)

     3,187       25,783  

Caribou Biosciences, Inc.(a)

     3,200       13,760  

Catalyst Pharmaceuticals, Inc.(a)

     5,737       91,333  

Celldex Therapeutics, Inc.(a)

     2,833       89,070  

Century Therapeutics, Inc.(a)

     1,204       3,769  

Cerevel Therapeutics Holdings, Inc.(a)(b)

     3,860       112,094  

Chinook Therapeutics, Inc.(a)

     2,711       54,247  

Cogent Biosciences, Inc.(a)(b)

     4,230       45,515  

Coherus Biosciences, Inc.(a)

     3,948       28,544  

Crinetics Pharmaceuticals, Inc.(a)

     2,622       51,234  

CRISPR Therapeutics AG(a)(b)

     4,708       230,409  

CTI BioPharma Corp.(a)(b)

     6,329       30,759  

Cullinan Oncology, Inc.(a)(b)

     1,564       15,218  

Cytokinetics, Inc.(a)

     5,687       212,694  

Day One Biopharmaceuticals, Inc.(a)

     1,615       20,026  

Deciphera Pharmaceuticals, Inc.(a)

     3,349       47,589  

Denali Therapeutics, Inc.(a)(b)

     6,647       165,111  

Design Therapeutics, Inc.(a)(b)

     1,761       11,358  

Dynavax Technologies Corp.(a)

     7,166       74,598  

Dyne Therapeutics, Inc.(a)

     1,519       15,737  

Eagle Pharmaceuticals, Inc.(a)

     602       16,904  

Editas Medicine, Inc.(a)(b)

     4,094       33,407  

Emergent BioSolutions, Inc.(a)

     2,641       23,320  

Enanta Pharmaceuticals, Inc.(a)

     1,204       42,802  

EQRx, Inc.(a)(b)

     13,782       23,154  

Erasca, Inc.(a)(b)

     4,575       12,627  

Exact Sciences Corp.(a)

     10,716       686,574  

Exelixis, Inc.(a)

     19,491       356,685  

Fate Therapeutics, Inc.(a)

     4,976       30,204  

FibroGen, Inc.(a)

     5,293       90,616  

Geron Corp.(a)

     23,287       57,286  

Gossamer Bio, Inc.(a)

     4,581       5,909  

Halozyme Therapeutics, Inc.(a)

     8,141       261,570  

Heron Therapeutics, Inc.(a)

     6,744       16,118  

HilleVax, Inc.(a)

     777       10,878  

Ideaya Biosciences, Inc.(a)

     2,429       44,354  

IGM Biosciences, Inc.(a)(b)

     526       5,697  

ImmunoGen, Inc.(a)

     11,840       63,818  

Immunovant, Inc.(a)

     3,426       55,296  

Inhibrx, Inc.(a)

     1,790       37,590  

Inovio Pharmaceuticals, Inc.(a)(b)

     14,813       11,443  

Insmed, Inc.(a)(b)

     8,212       160,134  

Instil Bio, Inc.(a)

     4,372       2,857  

Intellia Therapeutics, Inc.(a)(b)

     5,004       188,901  

Intercept Pharmaceuticals, Inc.(a)(b)

     2,248       38,935  

Ionis Pharmaceuticals, Inc.(a)(b)

     8,541       302,095  

Iovance Biotherapeutics, Inc.(a)

     8,174       46,101  
Security   Shares     Value  
Biotechnology (continued)            

Ironwood Pharmaceuticals, Inc., Class A(a)

     8,072     $ 84,030  

iTeos Therapeutics, Inc.(a)

     1,458       20,033  

IVERIC bio, Inc.(a)

     7,772       255,621  

Janux Therapeutics, Inc.(a)

     1,017       15,580  

Karyopharm Therapeutics, Inc.(a)

     6,338       22,690  

Keros Therapeutics, Inc.(a)

     1,032       45,774  

Kezar Life Sciences, Inc.(a)(b)

     3,089       7,506  

Krystal Biotech, Inc.(a)(b)

     1,298           109,032  

Kura Oncology, Inc.(a)

     3,844       37,441  

Kymera Therapeutics, Inc.(a)(b)

     2,374       74,876  

Lyell Immunopharma, Inc.(a)(b)

     8,505       17,265  

Madrigal Pharmaceuticals, Inc.(a)

     737       229,944  

MannKind Corp.(a)(b)

     15,676       60,353  

MiNK Therapeutics, Inc.(a)

     239       428  

Mirati Therapeutics, Inc.(a)

     3,132       138,779  

Mirum Pharmaceuticals, Inc.(a)

     1,503       40,356  

Monte Rosa Therapeutics, Inc.(a)

     1,945       8,830  

Morphic Holding, Inc.(a)

     1,764       83,367  

Myriad Genetics, Inc.(a)

     4,907       104,470  

Natera, Inc.(a)

     6,555       332,470  

Nkarta, Inc.(a)(b)

     1,932       9,563  

Novavax, Inc.(a)(b)

     5,272       40,436  

Nurix Therapeutics, Inc.(a)

     2,600       25,038  

Nuvalent, Inc., Class A(a)(b)

     1,594       56,412  

Organogenesis Holdings, Inc., Class A(a)

     4,584       9,397  

PMV Pharmaceuticals, Inc.(a)(b)

     1,931       8,902  

Point Biopharma Global, Inc.(a)(b)

     4,795       37,113  

Prime Medicine, Inc.(a)(b)

     568       7,821  

Prometheus Biosciences, Inc.(a)

     2,062       399,925  

Protagonist Therapeutics, Inc.(a)

     2,778       62,783  

PTC Therapeutics, Inc.(a)(b)

     4,337       239,142  

RAPT Therapeutics, Inc.(a)

     1,514       27,555  

Recursion Pharmaceuticals, Inc., Class A(a)(b)

     7,776       37,092  

REGENXBIO, Inc.(a)

     2,242       43,405  

Relay Therapeutics, Inc.(a)(b)

     5,369       61,046  

Replimune Group, Inc.(a)

     2,240       37,475  

REVOLUTION Medicines, Inc.(a)(b)

     5,347       125,601  

Rocket Pharmaceuticals, Inc.(a)

     3,571       63,992  

Roivant Sciences Ltd.(a)

     6,541       55,926  

Sage Therapeutics, Inc.(a)

     3,124       152,607  

Sana Biotechnology, Inc.(a)(b)

     5,315       28,116  

Sangamo Therapeutics, Inc.(a)

     8,220       12,083  

Seres Therapeutics, Inc.(a)(b)

     5,430       26,471  

SpringWorks Therapeutics, Inc.(a)(b)

     2,698       63,079  

Stoke Therapeutics, Inc.(a)

     1,351       12,010  

Syndax Pharmaceuticals, Inc.(a)

     3,929       80,741  

Tango Therapeutics, Inc.(a)

     2,631       8,945  

TG Therapeutics, Inc.(a)(b)

     8,322       206,635  

Travere Therapeutics, Inc.(a)

     3,825       82,505  

Twist Bioscience Corp.(a)(b)

     3,472       43,331  

Ultragenyx Pharmaceutical, Inc.(a)

     4,213       183,982  

uniQure NV(a)

     2,441       47,380  

Vanda Pharmaceuticals, Inc.(a)

     3,334       20,471  

Vaxcyte, Inc.(a)

     4,454       190,765  

Vera Therapeutics, Inc., Class A(a)

     1,732       11,518  

Veracyte, Inc.(a)

     4,365       98,824  

Vericel Corp.(a)

     2,820       88,858  

Verve Therapeutics, Inc.(a)(b)

     2,512       40,016  

Vir Biotechnology, Inc.(a)

     4,585       115,313  

Viridian Therapeutics, Inc.(a)

     2,422       67,889  

Xencor, Inc.(a)(b)

     3,622       95,766  
 

 

 

22  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Zentalis Pharmaceuticals, Inc.(a)(b)

     2,616     $ 57,630  

Zymeworks, Inc.(a)(b)

     3,198       26,863  
   

 

 

  
          11,345,938  
Broadline Retail — 0.4%            

Big Lots, Inc.

     1,849       16,623  

ContextLogic, Inc., Class A(a)

     1,124       8,104  

Dillard’s, Inc., Class A(b)

     203       60,573  

Kohl’s Corp.

     6,661       146,742  

Macy’s, Inc.

     16,401       267,992  

Nordstrom, Inc.

     6,727       103,999  

Ollie’s Bargain Outlet Holdings, Inc.(a)(b)

     3,494       227,984  

Qurate Retail, Inc., Series A(a)

     20,439       16,282  
   

 

 

  
      848,299  
Building Products — 1.4%            

AAON, Inc.

     2,537       248,626  

American Woodmark Corp.(a)

     993       50,166  

Apogee Enterprises, Inc.

     1,351       57,499  

Armstrong World Industries, Inc.

     2,762       189,639  

AZEK Co., Inc., Class A(a)

     6,569       178,283  

AZZ, Inc.

     1,522       57,425  

Gibraltar Industries, Inc.(a)

     1,900       95,076  

Griffon Corp.

     2,892       82,277  

Hayward Holdings, Inc.(a)(b)

     6,972       83,943  

Insteel Industries, Inc.

     1,149       31,632  

Janus International Group, Inc.(a)

     4,814       43,326  

JELD-WEN Holding, Inc.(a)

     5,034       64,335  

Masonite International Corp.(a)(b)

     1,354       123,769  

PGT Innovations, Inc.(a)

     3,647       93,582  

Quanex Building Products Corp.

     2,001       38,219  

Resideo Technologies, Inc.(a)

     8,844       157,423  

Simpson Manufacturing Co., Inc.

     2,561       322,123  

Tecnoglass, Inc.

     1,206       52,883  

Trex Co., Inc.(a)

     6,632       362,505  

UFP Industries, Inc.

     3,708       291,152  

Zurn Elkay Water Solutions Corp.

     8,719       187,894  
   

 

 

  
      2,811,777  
Capital Markets — 2.2%            

Affiliated Managers Group, Inc.

     2,280       329,186  

Artisan Partners Asset Management, Inc., Class A

     4,133       143,291  

AssetMark Financial Holdings, Inc.(a)

     1,284       39,393  

Avantax, Inc.(a)

     2,450       62,157  

B Riley Financial, Inc.(b)

     959       30,209  

BGC Partners, Inc., Class A

     19,531       88,475  

Blue Owl Capital, Inc., Class A

     21,585       243,047  

Bridge Investment Group Holdings, Inc., Class A

     1,803       18,012  

Brightsphere Investment Group, Inc.

     2,014       45,476  

CION Investment Corp.

     3,369       31,938  

Cohen & Steers, Inc.

     1,501       90,150  

Diamond Hill Investment Group, Inc., Class A

     198       32,100  

Donnelley Financial Solutions, Inc.(a)(b)

     1,521       65,783  

Evercore, Inc., Class A

     2,164       246,848  

Federated Hermes, Inc., Class B

     5,098       211,006  

Focus Financial Partners, Inc., Class A(a)

     3,506       182,102  

Freedom Holding Corp.(a)(b)

     1,020       77,959  

Hamilton Lane, Inc., Class A

     2,149       158,338  

Houlihan Lokey, Inc., Class A

     3,048       278,526  

Janus Henderson Group PLC

     8,018       208,067  

Moelis & Co., Class A

     3,881       147,012  

Open Lending Corp., Class A(a)

     6,529       45,899  

Oppenheimer Holdings, Inc., Class A, NVS

     463       17,312  

Piper Sandler Cos.

     829       112,280  
Security   Shares     Value  
Capital Markets (continued)            

PJT Partners, Inc., Class A

     1,495     $ 102,811  

StepStone Group, Inc., Class A

     2,964       65,297  

Stifel Financial Corp.

     6,356       381,169  

StoneX Group, Inc.(a)

     1,073       105,229  

TPG, Inc., Class A

     3,090       89,517  

Tradeweb Markets, Inc., Class A

     6,717       472,944  

Victory Capital Holdings, Inc., Class A

     1,646       50,269  

Virtu Financial, Inc., Class A

     5,587       112,019  

Virtus Investment Partners, Inc.

     409       74,524  

WisdomTree, Inc.

     6,941       43,312  
   

 

 

  
          4,401,657  
Chemicals — 2.3%            

AdvanSix, Inc.

     1,688       63,604  

American Vanguard Corp.

     1,726       33,225  

Amyris, Inc.(a)(b)

     15,822       12,936  

Ashland, Inc.

     3,006       305,440  

Aspen Aerogels, Inc.(a)(b)

     3,305       20,689  

Avient Corp.

     5,151       198,365  

Axalta Coating Systems Ltd.(a)

     13,311       420,228  

Balchem Corp.

     1,937       254,522  

Cabot Corp.

     3,393       243,482  

Chase Corp.

     455       49,745  

Chemours Co.

     8,925       259,450  

Diversey Holdings Ltd.(a)(b)

     4,578       37,219  

Ecovyst, Inc.(a)

     3,943       44,753  

Element Solutions, Inc.

     13,551       245,951  

Ginkgo Bioworks Holdings, Inc., Class A(a)(b)

     61,022       74,447  

Hawkins, Inc.

     1,132       45,665  

HB Fuller Co.

     3,231       213,795  

Huntsman Corp.

     10,862       290,993  

Ingevity Corp.(a)

     2,112       151,515  

Innospec, Inc.

     1,501       152,547  

Intrepid Potash, Inc.(a)(b)

     614       15,829  

Koppers Holdings, Inc.

     1,291       42,358  

Kronos Worldwide, Inc.

     1,376       12,797  

Livent Corp.(a)(b)

     10,797       235,914  

LSB Industries, Inc.(a)

     3,147       28,103  

Mativ Holdings, Inc.

     3,332       64,541  

Minerals Technologies, Inc.

     1,944       115,201  

NewMarket Corp.

     407       162,637  

Origin Materials, Inc., Class A(a)(b)

     7,367       29,100  

Perimeter Solutions SA(a)

     8,805       65,861  

PureCycle Technologies, Inc.(a)

     8,145       53,513  

Quaker Chemical Corp.

     825       153,970  

Scotts Miracle-Gro Co.

     2,467       164,820  

Sensient Technologies Corp.

     2,537       188,905  

Stepan Co.

     1,280       118,016  

Trinseo PLC

     2,088       37,834  

Tronox Holdings PLC, Class A

     6,966       95,364  
   

 

 

  
      4,703,334  
Commercial Services & Supplies — 1.6%            

ABM Industries, Inc.

     4,003       170,448  

ACCO Brands Corp.

     5,763       26,394  

ACV Auctions, Inc., Class A(a)

     7,181       93,568  

Aris Water Solutions, Inc., Class A

     1,651       12,003  

Aurora Innovation, Inc., Class A(a)(b)

     23,133       33,080  

Brady Corp., Class A, NVS

     2,777       141,710  

BrightView Holdings, Inc.(a)

     2,291       12,669  

Brink’s Co.

     2,803       176,169  

Casella Waste Systems, Inc., Class A(a)

     3,051       271,539  

CECO Environmental Corp.(a)

     1,807       20,979  

Cimpress PLC(a)(b)

     1,209       62,808  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   23

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Commercial Services & Supplies (continued)            

Clean Harbors, Inc.(a)

     3,030     $ 439,835  

CoreCivic, Inc.(a)

     7,044       61,917  

Deluxe Corp.

     2,578       39,057  

Driven Brands Holdings, Inc.(a)(b)

     3,348       102,784  

Ennis, Inc.

     1,657       32,195  

GEO Group, Inc.(a)

     7,426       55,918  

Harsco Corp.(a)

     4,732       32,509  

Healthcare Services Group, Inc.

     4,455       69,543  

Heritage-Crystal Clean, Inc.(a)

     977       34,156  

HNI Corp.

     2,559       66,483  

Interface, Inc., Class A

     3,572       28,004  

KAR Auction Services, Inc.(a)

     6,533       88,457  

Liquidity Services, Inc.(a)

     1,480       19,344  

Matthews International Corp., Class A

     1,836       69,529  

MillerKnoll, Inc.

     4,609       78,399  

Montrose Environmental Group, Inc.(a)(b)

     1,647       50,168  

MSA Safety, Inc.

     2,218       287,785  

SP Plus Corp.(a)(b)

     1,200       41,004  

Steelcase, Inc., Class A

     5,623       44,984  

Stericycle, Inc.(a)

     5,583       254,864  

UniFirst Corp.

     911       149,112  

Viad Corp.(a)

     1,245       23,692  

VSE Corp.

     627       26,516  
   

 

 

  
          3,117,622  
Communications Equipment — 0.6%            

ADTRAN Holdings, Inc.

     4,222       38,505  

Calix, Inc.(a)

     3,444       157,391  

Cambium Networks Corp.(a)

     696       10,537  

Clearfield, Inc.(a)(b)

     766       33,459  

Digi International, Inc.(a)

     2,167       65,357  

DZS, Inc.(a)

     961       6,535  

Extreme Networks, Inc.(a)

     7,721       137,279  

Harmonic, Inc.(a)

     6,636       93,501  

Infinera Corp.(a)(b)

     11,531       72,991  

Lumentum Holdings, Inc.(a)

     4,116       198,597  

NETGEAR, Inc.(a)

     1,723       24,346  

NetScout Systems, Inc.(a)

     4,099       111,534  

Ribbon Communications, Inc.(a)

     5,250       13,440  

Viasat, Inc.(a)(b)

     4,596       160,998  

Viavi Solutions, Inc.(a)

     13,502       120,978  
   

 

 

  
      1,245,448  
Construction & Engineering — 1.7%            

Ameresco, Inc., Class A(a)(b)

     2,042       84,947  

API Group Corp.(a)

     12,106       275,533  

Arcosa, Inc.

     2,912       196,676  

Argan, Inc.

     864       34,759  

Comfort Systems U.S.A., Inc.

     2,160       322,898  

Construction Partners, Inc., Class A(a)

     2,537       65,810  

Dycom Industries, Inc.(a)(b)

     1,774       164,308  

EMCOR Group, Inc.

     2,871       490,941  

Fluor Corp.(a)

     8,553       248,550  

Granite Construction, Inc.

     2,646       100,892  

Great Lakes Dredge & Dock Corp.(a)

     3,938       22,565  

IES Holdings, Inc.(a)

     500       21,595  

MasTec, Inc.(a)

     3,581       318,029  

MDU Resources Group, Inc.

     12,250       357,945  

MYR Group, Inc.(a)

     1,001       128,118  

Primoris Services Corp.

     3,191       80,732  

Sterling Infrastructure, Inc.(a)

     1,835       67,748  
Security   Shares     Value  
Construction & Engineering (continued)            

Tutor Perini Corp.(a)

     2,519     $ 13,351  

Valmont Industries, Inc.

     1,283       372,788  
   

 

 

  
      3,368,185  
Construction Materials — 0.3%            

Eagle Materials, Inc.

     2,172       321,912  

Summit Materials, Inc., Class A(a)(b)

     7,142       195,762  
   

 

 

  
      517,674  
Consumer Finance — 1.0%            

Atlanticus Holdings Corp.(a)(b)

     338       9,856  

Bread Financial Holdings, Inc.

     2,962       81,751  

Credit Acceptance Corp.(a)(b)

     367       179,646  

Encore Capital Group, Inc.(a)(b)

     1,418       72,857  

Enova International, Inc.(a)

     1,890       83,009  

EZCORP, Inc., Class A, NVS(a)

     3,354       28,878  

FirstCash Holdings, Inc.

     2,267       233,569  

Green Dot Corp., Class A(a)

     2,814       48,373  

LendingClub Corp.(a)(b)

     6,487       46,577  

Navient Corp.

     6,123       101,274  

Nelnet, Inc., Class A

     1,092       105,160  

NerdWallet, Inc., Class A(a)(b)

     2,013       27,316  

OneMain Holdings, Inc.

     7,318       280,792  

PRA Group, Inc.(a)

     2,357       85,488  

PROG Holdings, Inc.(a)

     3,078       93,048  

SLM Corp.

     14,611       219,457  

SoFi Technologies, Inc.(a)(b)

     49,753       309,961  

Upstart Holdings, Inc.(a)(b)

     4,243       58,978  

World Acceptance Corp.(a)

     220       22,198  
   

 

 

  
          2,088,188  
Consumer Staples Distribution & Retail — 0.5%            

Andersons, Inc.

     1,884       84,215  

Chefs’ Warehouse, Inc.(a)(b)

     2,058       68,449  

Fresh Market, Inc. Escrow(a)(c)

     16,033       —  

Grocery Outlet Holding Corp.(a)(b)

     5,318       158,370  

Ingles Markets, Inc., Class A(b)

     875       80,535  

PriceSmart, Inc.

     1,520       111,994  

SpartanNash Co.

     2,163       53,037  

Sprouts Farmers Market, Inc.(a)

     6,372       220,853  

United Natural Foods, Inc.(a)

     3,616       98,608  

Weis Markets, Inc.

     992       81,830  
   

 

 

  
      957,891  
Containers & Packaging — 1.0%            

Berry Global Group, Inc.

     7,359       425,424  

Graphic Packaging Holding Co.

     18,483       455,791  

Greif, Inc., Class A, NVS

     1,549       97,262  

Greif, Inc., Class B

     328       25,827  

Myers Industries, Inc.

     2,194       41,576  

O-I Glass, Inc.(a)

     9,269       208,274  

Pactiv Evergreen, Inc.

     2,367       18,699  

Silgan Holdings, Inc.

     5,035       248,024  

Sonoco Products Co.

     5,880       356,446  

TriMas Corp.

     2,545       64,668  
   

 

 

  
      1,941,991  
Distributors — 0.0%            

Funko, Inc., Class A(a)(b)

     2,004       19,759  
   

 

 

  
Diversified Consumer Services — 1.0%            

2U, Inc.(a)

     4,672       25,883  

Adtalem Global Education, Inc.(a)

     2,738       111,081  

Bright Horizons Family Solutions, Inc.(a)

     3,477       264,669  

Chegg, Inc.(a)

     7,638       137,331  

Coursera, Inc.(a)

     5,165       64,253  
 

 

 

24  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Consumer Services (continued)            

European Wax Center, Inc., Class A(a)

     1,795     $ 33,818  

Frontdoor, Inc.(a)(b)

     4,909       134,310  

Graham Holdings Co., Class B

     232       133,532  

Grand Canyon Education, Inc.(a)

     1,846       219,120  

H&R Block, Inc.

     9,181       311,328  

Laureate Education, Inc., Class A

     8,096       100,309  

Mister Car Wash, Inc.(a)(b)

     4,784       42,195  

OneSpaWorld Holdings Ltd.(a)

     3,534       42,408  

Perdoceo Education Corp.(a)

     4,024       52,231  

Rover Group, Inc., Class A(a)

     5,684       25,749  

Strategic Education, Inc.

     1,338       117,744  

Stride, Inc.(a)

     2,456       105,510  

Udemy, Inc.(a)

     3,842       34,924  
   

 

 

  
          1,956,395  
Diversified REITs — 0.4%            

Alexander & Baldwin, Inc.

     4,339       83,439  

American Assets Trust, Inc.

     3,105       56,511  

Armada Hoffler Properties, Inc.

     4,033       47,267  

Broadstone Net Lease, Inc.

     10,409       168,314  

Empire State Realty Trust, Inc., Class A(b)

     7,655       46,772  

Essential Properties Realty Trust, Inc.

     8,579       212,330  

Gladstone Commercial Corp.

     2,359       28,166  

Global Net Lease, Inc.

     6,226       70,105  

One Liberty Properties, Inc.

     948       20,875  
   

 

 

  
      733,779  
Diversified Telecommunication Services — 0.7%  

Anterix, Inc.(a)

     1,154       36,443  

ATN International, Inc.

     641       23,185  

Charge Enterprises, Inc.(a)

     5,680       6,021  

Cogent Communications Holdings, Inc.

     2,578       177,985  

Consolidated Communications Holdings, Inc.(a)

     4,496       17,400  

EchoStar Corp., Class A(a)(b)

     2,165       36,957  

Frontier Communications Parent, Inc.(a)

     13,412       302,306  

Globalstar, Inc.(a)(b)

     41,896       37,958  

IDT Corp., Class B(a)

     1,244       41,313  

Iridium Communications, Inc.

     7,557       479,643  

Liberty Latin America Ltd., Class A(a)

     2,318       20,561  

Liberty Latin America Ltd., Class C, NVS(a)

     8,906       79,085  

Radius Global Infrastructure, Inc., Class A(a)

     4,660       68,455  
   

 

 

  
      1,327,312  
Electric Utilities — 0.8%            

ALLETE, Inc.

     3,459       215,772  

Hawaiian Electric Industries, Inc.

     6,620       259,570  

IDACORP, Inc.

     3,046       338,472  

MGE Energy, Inc.

     2,176       166,703  

Otter Tail Corp.

     2,518       181,170  

PNM Resources, Inc.

     5,161       248,399  

Portland General Electric Co.

     5,395       273,095  
   

 

 

  
      1,683,181  
Electrical Equipment — 1.6%            

Acuity Brands, Inc.

     1,931       303,901  

Allied Motion Technologies, Inc.

     822       28,293  

Amprius Technologies, Inc.(a)(b)

     742       6,960  

Atkore, Inc.(a)(b)

     2,374       299,907  

Babcock & Wilcox Enterprises, Inc.(a)(b)

     4,315       26,839  

Blink Charging Co.(a)(b)

     2,962       21,119  

Bloom Energy Corp., Class A(a)(b)

     10,834       180,386  

ChargePoint Holdings, Inc., Class A(a)(b)

     16,009       138,798  

Encore Wire Corp.

     1,110       173,526  

Energy Vault Holdings, Inc.(a)(b)

     3,972       6,713  

EnerSys

     2,467       204,687  
Security   Shares     Value  
Electrical Equipment (continued)            

ESS Tech, Inc.(a)(b)

     3,259     $ 3,487  

Fluence Energy, Inc., Class A(a)(b)

     2,282       41,213  

FREYR Battery SA(a)(b)

     6,142       43,424  

FuelCell Energy, Inc.(a)(b)

     24,094       45,297  

GrafTech International Ltd.(b)

     11,460       53,977  

NuScale Power Corp., Class A(a)(b)

     1,246       11,052  

nVent Electric PLC

     10,060       421,816  

Preformed Line Products Co.

     173       21,501  

Sensata Technologies Holding PLC

     9,202       399,827  

SES AI Corp., Class A(a)(b)

     8,470       13,806  

SunPower Corp.(a)(b)

     5,142       67,977  

Sunrun, Inc.(a)(b)

     12,895       271,311  

Thermon Group Holdings, Inc.(a)

     2,039       42,370  

Vertiv Holdings Co., Class A

     18,201       271,559  

Vicor Corp.(a)

     1,366       58,697  
   

 

 

  
      3,158,443  
Electronic Equipment, Instruments & Components — 2.4%  

908 Devices, Inc.(a)(b)

     1,293       8,741  

Advanced Energy Industries, Inc.

     2,253       194,885  

Aeva Technologies, Inc.(a)

     6,471       6,419  

Arlo Technologies, Inc.(a)(b)

     5,358       34,506  

Avnet, Inc.

     5,494       226,682  

Badger Meter, Inc.

     1,764       233,430  

Bel Fuse, Inc., Class B, NVS

     610       24,784  

Belden, Inc.

     2,575       203,142  

Benchmark Electronics, Inc.

     2,138       45,646  

Coherent Corp.(a)(b)

     8,374       285,888  

CTS Corp.

     1,924       75,440  

ePlus, Inc.(a)

     1,619       70,491  

Fabrinet(a)

     2,202       209,080  

FARO Technologies, Inc.(a)

     1,165       27,203  

Focus Universal, Inc.(a)(b)

     1,629       3,470  

Insight Enterprises, Inc.(a)(b)

     1,842       222,790  

IPG Photonics Corp.(a)

     1,933       222,256  

Itron, Inc.(a)

     2,734       145,996  

Kimball Electronics, Inc.(a)

     1,493       30,054  

Knowles Corp.(a)(b)

     5,592       94,393  

Lightwave Logic, Inc.(a)(b)

     6,681       30,065  

Littelfuse, Inc.

     1,495       362,149  

Methode Electronics, Inc.

     2,203       90,301  

MicroVision, Inc.(a)(b)

     10,239       20,478  

Mirion Technologies, Inc., Class A(a)(b)

     7,416       60,070  

Napco Security Technologies, Inc.(a)

     1,792       55,552  

National Instruments Corp.

     7,878       458,736  

nLight, Inc.(a)

     2,704       23,714  

Novanta, Inc.(a)

     2,145       327,842  

OSI Systems, Inc.(a)

     948       107,086  

PAR Technology Corp.(a)(b)

     1,625       49,709  

PC Connection, Inc.

     747       30,082  

Plexus Corp.(a)

     1,669       145,987  

Sanmina Corp.(a)

     3,536       184,791  

ScanSource, Inc.(a)

     1,541       42,146  

SmartRent, Inc., Class A(a)(b)

     7,342       18,942  

TTM Technologies, Inc.(a)

     6,203       73,257  

Vishay Intertechnology, Inc.

     7,851       167,148  

Vishay Precision Group, Inc.(a)

     754       28,305  

Vontier Corp.

     9,511       258,033  
   

 

 

  
          4,899,689  
Energy Equipment & Services — 1.3%            

Archrock, Inc.

     8,147       83,833  

Bristow Group, Inc.(a)

     1,389       31,072  

Cactus, Inc., Class A

     3,859       156,212  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   25

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Energy Equipment & Services (continued)            

ChampionX Corp.

     11,972     $ 324,202  

Core Laboratories NV

     2,773       62,420  

Diamond Offshore Drilling, Inc.(a)

     6,057       69,595  

DMC Global, Inc.(a)

     1,102       20,872  

Dril-Quip, Inc.(a)

     2,072       56,524  

Helix Energy Solutions Group, Inc.(a)

     8,663       62,807  

Helmerich & Payne, Inc.

     6,329       209,870  

Liberty Energy, Inc., Class A

     9,027       115,636  

Nabors Industries Ltd.(a)

     548       54,657  

NexTier Oilfield Solutions, Inc.(a)

     9,603       77,592  

Oceaneering International, Inc.(a)

     6,040       107,089  

Oil States International, Inc.(a)

     3,969       27,942  

Patterson-UTI Energy, Inc.

     12,912       144,485  

ProFrac Holding Corp., Class A(a)

     1,945       21,784  

ProPetro Holding Corp.(a)

     5,729       39,759  

RPC, Inc.

     4,942       36,521  

Select Energy Services, Inc., Class A

     5,002       37,165  

Solaris Oilfield Infrastructure, Inc., Class A

     1,942       14,915  

TETRA Technologies, Inc.(a)

     6,819       19,434  

Tidewater, Inc.(a)(b)

     3,056       137,612  

Transocean Ltd.(a)(b)

     40,044       236,260  

U.S. Silica Holdings, Inc.(a)

     4,620       60,291  

Valaris Ltd.(a)

     3,644       218,640  

Weatherford International PLC(a)

     3,896       251,798  
   

 

 

  
          2,678,987  
Entertainment — 0.8%            

AMC Entertainment Holdings, Inc., Class A(a)(b)

     31,142       171,281  

Cinemark Holdings, Inc.(a)

     6,547       110,513  

Endeavor Group Holdings, Inc., Class A(a)

     10,444       269,246  

IMAX Corp.(a)

     2,794       58,534  

Liberty Media Corp. - Liberty Braves, Class A(a)(b)

     632       24,755  

Liberty Media Corp. - Liberty Braves, Class C, NVS(a)(b)

     2,266       86,153  

Lions Gate Entertainment Corp., Class A(a)(b)

     3,726       42,849  

Lions Gate Entertainment Corp., Class B, NVS(a)

     7,668       81,818  

Madison Square Garden Sports Corp., Class A(b)

     1,073       215,137  

Playstudios, Inc., Class A(a)

     5,367       23,508  

Playtika Holding Corp.(a)(b)

     5,506       55,060  

Sphere Entertainment Co., Class A(a)(b)

     1,584       44,574  

Vivid Seats, Inc., Class A(a)(b)

     1,368       9,822  

Warner Music Group Corp., Class A

     7,078       215,667  

World Wrestling Entertainment, Inc., Class A

     2,610       279,714  
   

 

 

  
      1,688,631  
Financial Services — 2.0%            

Affirm Holdings, Inc., Class A(a)(b)

     12,987       128,052  

Alerus Financial Corp.

     1,174       16,894  

A-Mark Precious Metals, Inc.

     1,128       40,382  

AvidXchange Holdings, Inc.(a)

     8,090       60,109  

Cannae Holdings, Inc.(a)

     4,444       81,059  

Cass Information Systems, Inc.

     737       26,959  

Compass Diversified Holdings

     3,758       71,628  

Enact Holdings, Inc.

     1,864       44,997  

Essent Group Ltd.

     6,541       277,796  

Euronet Worldwide, Inc.(a)(b)

     2,847       315,277  

EVERTEC, Inc.

     3,981       138,101  

Federal Agricultural Mortgage Corp., Class C, NVS

     567       75,575  

Flywire Corp.(a)

     3,807       111,050  

I3 Verticals, Inc., Class A(a)

     1,407       32,713  

International Money Express, Inc.(a)(b)

     2,027       52,256  

Jackson Financial, Inc., Class A

     3,595       129,456  

Marqeta, Inc., Class A(a)

     26,569       107,604  

Merchants Bancorp

     1,570       36,424  
Security   Shares     Value  
Financial Services (continued)            

MGIC Investment Corp.

     17,789     $ 264,522  

MoneyGram International, Inc.(a)(b)

     5,704       57,953  

Mr. Cooper Group, Inc.(a)

     4,203       194,599  

NMI Holdings, Inc., Class A(a)

     5,131       120,065  

PennyMac Financial Services, Inc., Class A

     1,829       114,294  

Radian Group, Inc.

     9,482       230,128  

Remitly Global, Inc.(a)(b)

     5,901       99,137  

Repay Holdings Corp., Class A(a)

     4,788       30,021  

Rocket Cos., Inc., Class A(a)

     7,307       65,105  

Shift4 Payments, Inc., Class A(a)(b)

     3,194       216,457  

TFS Financial Corp.

     3,039       36,590  

Voya Financial, Inc.

     5,859       448,096  

Walker & Dunlop, Inc.

     1,860       125,197  

Waterstone Financial, Inc.

     1,463       20,263  

Western Union Co.

     17,516       191,450  
   

 

 

  
      3,960,209  
Food Products — 1.5%            

B&G Foods, Inc.

     4,292       68,844  

Benson Hill, Inc.(a)(b)

     7,567       8,021  

Beyond Meat, Inc.(a)(b)

     3,692       49,990  

BRC, Inc., Class A(a)(b)

     2,127       11,082  

Calavo Growers, Inc.

     1,066       34,069  

Cal-Maine Foods, Inc.

     2,276       108,110  

Flowers Foods, Inc.

     11,553       317,823  

Fresh Del Monte Produce, Inc.

     1,835       52,683  

Freshpet, Inc.(a)(b)

     2,904       200,289  

Hain Celestial Group, Inc.(a)(b)

     5,460       97,898  

Hostess Brands, Inc., Class A(a)

     8,039       207,085  

Ingredion, Inc.

     3,954       419,796  

J & J Snack Foods Corp.

     907       138,952  

John B. Sanfilippo & Son, Inc.

     540       56,133  

Lancaster Colony Corp.

     1,200       250,944  

Mission Produce, Inc.(a)(b)

     2,367       26,960  

Pilgrim’s Pride Corp.(a)

     2,702       61,633  

Post Holdings, Inc.(a)(b)

     3,228       292,102  

Seaboard Corp.

     16       63,057  

Seneca Foods Corp., Class A(a)

     312       14,851  

Simply Good Foods Co.(a)

     5,084       184,905  

Sovos Brands, Inc.(a)(b)

     2,260       38,759  

Tattooed Chef, Inc., Class A(a)(b)

     2,814       4,333  

Tootsie Roll Industries, Inc.

     1,090       44,559  

TreeHouse Foods, Inc.(a)

     3,045       162,146  

Utz Brands, Inc., Class A

     3,993       75,508  

Vital Farms, Inc.(a)

     1,688       21,741  

Westrock Coffee Co.(a)

     664       8,121  
   

 

 

  
          3,020,394  
Gas Utilities — 0.8%            

Chesapeake Utilities Corp.

     1,060       130,910  

National Fuel Gas Co.

     5,535       309,407  

New Jersey Resources Corp.

     5,833       301,216  

Northwest Natural Holding Co.

     2,151       101,011  

ONE Gas, Inc.

     3,256       250,549  

Southwest Gas Holdings, Inc.

     3,929       220,024  

Spire, Inc.

     3,176       215,110  
   

 

 

  
      1,528,227  
Ground Transportation — 1.0%            

ArcBest Corp.

     1,461       137,919  

Heartland Express, Inc.

     2,786       40,341  

Landstar System, Inc.(b)

     2,163       380,753  

Lyft, Inc., Class A(a)

     19,355       198,389  

Marten Transport Ltd.

     3,469       70,039  
 

 

 

26  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Ground Transportation (continued)            

PAM Transportation Services, Inc.(a)

     412     $ 9,249  

Ryder System, Inc.

     3,040       240,647  

Saia, Inc.(a)

     1,594       474,645  

Schneider National, Inc., Class B

     2,218       58,045  

TuSimple Holdings, Inc., Class A(a)

     9,130       11,047  

Universal Logistics Holdings, Inc.

     392       10,035  

Werner Enterprises, Inc.

     3,548       160,263  

XPO, Inc.(a)

     6,944       306,786  
   

 

 

  
          2,098,158  
Health Care Equipment & Supplies — 4.0%            

Alphatec Holdings, Inc.(a)

     4,263       61,558  

AngioDynamics, Inc.(a)

     2,334       19,419  

Artivion, Inc.(a)

     2,508       34,786  

AtriCure, Inc.(a)

     2,822       124,140  

Atrion Corp.

     81       49,839  

Avanos Medical, Inc.(a)

     2,783       82,210  

Axonics, Inc.(a)

     2,990       171,805  

Bioventus, Inc., Class A(a)

     1,826       1,844  

Butterfly Network, Inc., Class A(a)(b)

     8,564       18,498  

Cerus Corp.(a)

     10,994       25,396  

CONMED Corp.

     1,845       231,677  

Cue Health, Inc.(a)(b)

     5,548       4,366  

Cutera, Inc.(a)

     1,068       24,350  

Embecta Corp.

     3,440       95,460  

Enovis Corp.(a)

     2,885       168,051  

Envista Holdings Corp.(a)

     9,812       377,664  

Establishment Labs Holdings, Inc.(a)

     1,347       93,872  

Figs, Inc., Class A(a)(b)

     7,543       54,310  

Glaukos Corp.(a)

     2,902       137,874  

Globus Medical, Inc., Class A(a)

     4,681       272,153  

Haemonetics Corp.(a)

     3,052       255,483  

Heska Corp.(a)

     623       72,991  

ICU Medical, Inc.(a)(b)

     1,217       230,183  

Inari Medical, Inc.(a)(b)

     2,921       194,013  

Inogen, Inc.(a)

     1,358       18,075  

Inspire Medical Systems, Inc.(a)(b)

     1,747       467,550  

Integer Holdings Corp.(a)

     2,003       164,947  

Integra LifeSciences Holdings Corp.(a)

     4,373       241,914  

iRhythm Technologies, Inc.(a)(b)

     1,820       239,148  

Lantheus Holdings, Inc.(a)

     4,145       354,190  

LeMaitre Vascular, Inc.

     1,153       62,262  

LivaNova PLC(a)

     3,253       155,819  

Masimo Corp.(a)

     2,910       550,398  

Merit Medical Systems, Inc.(a)

     3,422       278,174  

Mesa Laboratories, Inc.

     300       49,953  

Neogen Corp.(a)

     13,022       224,239  

Nevro Corp.(a)

     2,160       63,223  

NuVasive, Inc.(a)

     3,139       135,103  

Omnicell, Inc.(a)(b)

     2,701       164,140  

OrthoPediatrics Corp.(a)

     985       49,683  

Outset Medical, Inc.(a)(b)

     2,935       52,801  

Paragon 28, Inc.(a)

     1,502       27,667  

Penumbra, Inc.(a)

     2,292       651,203  

PROCEPT BioRobotics Corp.(a)

     1,990       60,476  

Pulmonx Corp.(a)

     2,276       26,743  

QuidelOrtho Corp.(a)

     3,223       289,909  

Senseonics Holdings, Inc.(a)(b)

     27,672       16,468  

SI-BONE, Inc.(a)

     1,809       39,979  

Silk Road Medical, Inc.(a)

     2,301       101,290  

STAAR Surgical Co.(a)

     2,920       205,772  

Surmodics, Inc.(a)

     832       19,169  

Tandem Diabetes Care, Inc.(a)

     3,860       152,779  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)            

TransMedics Group, Inc.(a)(b)

     1,937     $ 153,217  

Treace Medical Concepts, Inc.(a)

     2,092       51,233  

UFP Technologies, Inc.(a)

     423       58,306  

Varex Imaging Corp.(a)

     2,370       42,044  

Vicarious Surgical, Inc., Class A(a)

     2,182       4,909  

ViewRay, Inc.(a)(b)

     8,659       10,218  
   

 

 

  
          7,984,943  
Health Care Providers & Services — 2.5%            

23andMe Holding Co., Class A(a)(b)

     17,853       35,170  

Accolade, Inc.(a)(b)

     3,759       50,859  

Addus HomeCare Corp.(a)

     967       79,043  

Agiliti, Inc.(a)(b)

     1,963       32,821  

Amedisys, Inc.(a)

     1,953       156,826  

AMN Healthcare Services, Inc.(a)

     2,615       225,805  

Apollo Medical Holdings, Inc.(a)(b)

     2,363       83,863  

Brookdale Senior Living, Inc.(a)(b)

     11,118       47,696  

Cano Health, Inc., Class A(a)(b)

     11,976       13,892  

CareMax, Inc., Class A(a)

     4,559       11,489  

Castle Biosciences, Inc.(a)

     1,465       33,153  

Clover Health Investments Corp., Class A(a)(b)

     19,446       14,363  

Community Health Systems, Inc.(a)

     7,587       48,102  

CorVel Corp.(a)(b)

     548       110,712  

Cross Country Healthcare, Inc.(a)

     2,099       46,136  

DocGo, Inc.(a)(b)

     5,037       42,815  

Encompass Health Corp.

     6,031       386,889  

Enhabit, Inc.(a)

     3,072       37,632  

Ensign Group, Inc.

     3,361       326,319  

Fulgent Genetics, Inc.(a)

     1,164       34,419  

GeneDx Holdings Corp., Class A(a)(b)

     35,952       9,836  

Guardant Health, Inc.(a)(b)

     6,217       140,256  

HealthEquity, Inc.(a)

     5,085       271,793  

Hims & Hers Health, Inc., Class A(a)

     7,259       84,132  

Innovage Holding Corp.(a)

     1,198       7,320  

Invitae Corp.(a)(b)

     13,374       18,189  

LifeStance Health Group, Inc.(a)(b)

     5,556       45,281  

ModivCare, Inc.(a)

     767       48,781  

National HealthCare Corp.

     815       47,197  

National Research Corp., Class A

     849       36,957  

NeoGenomics, Inc.(a)

     7,609       111,244  

Oak Street Health, Inc.(a)

     7,038       274,271  

OPKO Health, Inc.(a)

     24,510       36,030  

Option Care Health, Inc.(a)

     10,104       324,844  

Owens & Minor, Inc.(a)

     4,600       71,484  

Patterson Cos., Inc.

     5,254       142,436  

Pediatrix Medical Group, Inc.(a)

     4,895       70,145  

Premier, Inc., Class A

     7,147       238,210  

Privia Health Group, Inc.(a)(b)

     3,042       84,050  

Progyny, Inc.(a)

     4,543       151,009  

RadNet, Inc.(a)

     2,965       82,012  

Select Medical Holdings Corp.

     6,279       191,509  

Surgery Partners, Inc.(a)(b)

     4,071       161,456  

Tenet Healthcare Corp.(a)

     6,505       476,947  

U.S. Physical Therapy, Inc.

     781       83,145  
   

 

 

  
      5,026,538  
Health Care REITs — 0.4%            

CareTrust REIT, Inc.

     6,066       118,226  

Community Healthcare Trust, Inc.

     1,406       50,321  

Global Medical REIT, Inc.

     3,741       34,716  

LTC Properties, Inc.

     2,482       83,023  

National Health Investors, Inc.

     2,641       131,443  

Physicians Realty Trust

     13,737       198,088  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   27

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care REITs (continued)            

Sabra Health Care REIT, Inc.

     13,896     $ 158,414  

Universal Health Realty Income Trust

     769       33,452  
   

 

 

  
      807,683  
Health Care Technology — 0.7%            

American Well Corp., Class A(a)

     14,295       31,306  

Certara, Inc.(a)(b)

     6,386       154,350  

Computer Programs & Systems, Inc.(a)

     869       22,490  

Definitive Healthcare Corp., Class A(a)

     2,313       24,749  

Doximity, Inc., Class A(a)(b)

     7,131       262,064  

Evolent Health, Inc., Class A(a)

     5,450       198,435  

GoodRx Holdings, Inc., Class A(a)

     4,548       21,239  

Health Catalyst, Inc.(a)

     3,292       41,479  

HealthStream, Inc.

     1,483       36,541  

Multiplan Corp., Class A(a)

     15,100       14,772  

NextGen Healthcare, Inc.(a)

     3,203       53,618  

Phreesia, Inc.(a)

     3,184       100,742  

Schrodinger, Inc.(a)

     3,198       94,405  

Sharecare, Inc., Class A(a)(b)

     18,808       28,964  

Simulations Plus, Inc.

     991       41,374  

Teladoc Health, Inc.(a)(b)

     9,770       259,198  

Veradigm, Inc.(a)

     6,542       81,710  
   

 

 

  
          1,467,436  
Hotel & Resort REITs — 0.7%            

Apple Hospitality REIT, Inc.

     12,795       190,518  

Chatham Lodging Trust

     2,951       30,218  

DiamondRock Hospitality Co.

     12,617       102,324  

Park Hotels & Resorts, Inc.

     13,522       162,940  

Pebblebrook Hotel Trust(b)

     7,927       112,801  

RLJ Lodging Trust

     9,807       99,051  

Ryman Hospitality Properties, Inc.

     3,315       297,223  

Service Properties Trust

     9,927       87,060  

Summit Hotel Properties, Inc.

     6,367       41,003  

Sunstone Hotel Investors, Inc.

     12,616       120,230  

Xenia Hotels & Resorts, Inc.

     6,659       84,303  
   

 

 

  
      1,327,671  
Hotels, Restaurants & Leisure — 3.2%            

Accel Entertainment, Inc., Class A(a)

     3,266       28,904  

Bally’s Corp.(a)(b)

     1,635       28,122  

BJ’s Restaurants, Inc.(a)

     1,395       45,393  

Bloomin’ Brands, Inc.

     5,305       131,405  

Bowlero Corp.(a)(b)

     2,041       29,860  

Boyd Gaming Corp.

     4,781       331,802  

Brinker International, Inc.(a)(b)

     2,638       105,309  

Cheesecake Factory, Inc.

     2,919       98,341  

Chuy’s Holdings, Inc.(a)

     1,075       37,496  

Cracker Barrel Old Country Store, Inc.

     1,344       142,679  

Dave & Buster’s Entertainment, Inc.(a)

     2,526       89,572  

Denny’s Corp.(a)

     3,427       38,417  

Dine Brands Global, Inc.

     939       60,969  

DraftKings, Inc., Class A(a)

     27,034       592,315  

Dutch Bros, Inc., Class A(a)(b)

     1,816       56,568  

Everi Holdings, Inc.(a)

     5,355       81,396  

First Watch Restaurant Group, Inc.(a)

     667       10,725  

Golden Entertainment, Inc.(a)

     1,314       55,398  

Hilton Grand Vacations, Inc.(a)

     4,773       204,284  

Hyatt Hotels Corp., Class A(a)

     2,910       332,613  

Jack in the Box, Inc.

     1,246       115,492  

Krispy Kreme, Inc.

     4,089       62,889  

Kura Sushi U.S.A., Inc., Class A(a)

     222       15,300  

Life Time Group Holdings, Inc.(a)(b)

     3,442       71,559  

Light & Wonder, Inc., Class A(a)

     5,655       340,940  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)            

Lindblad Expeditions Holdings, Inc.(a)(b)

     1,946     $ 22,009  

Marriott Vacations Worldwide Corp.

     2,311       310,968  

Monarch Casino & Resort, Inc.

     792       54,933  

Papa John’s International, Inc.

     1,943       145,317  

Penn Entertainment, Inc.(a)

     9,375       279,281  

Planet Fitness, Inc., Class A(a)

     5,017       417,113  

Portillo’s, Inc., Class A(a)

     2,590       55,996  

RCI Hospitality Holdings, Inc.(b)

     506       37,899  

Red Rock Resorts, Inc., Class A

     2,961       144,497  

Ruth’s Hospitality Group, Inc.

     1,880       30,381  

Sabre Corp.(a)(b)

     19,604       78,416  

SeaWorld Entertainment, Inc.(a)(b)

     2,377       127,550  

Shake Shack, Inc., Class A(a)

     2,261       123,926  

Six Flags Entertainment Corp.(a)

     4,482       108,778  

Sonder Holdings, Inc., Class A(a)(b)

     8,332       3,417  

Sweetgreen, Inc., Class A(a)(b)

     4,556       36,175  

Target Hospitality Corp.(a)

     1,439       18,146  

Texas Roadhouse, Inc.

     4,031       445,909  

Travel + Leisure Co.

     4,892       187,217  

Vacasa, Inc., Class A(a)(b)

     4,909       3,911  

Wendy’s Co.

     10,273       227,033  

Wingstop, Inc.

     1,808       361,799  

Xponential Fitness, Inc., Class A(a)

     1,359       44,956  
   

 

 

  
          6,373,375  
Household Durables — 2.4%            

Cavco Industries, Inc.(a)

     486       145,907  

Century Communities, Inc.

     1,715       115,488  

Cricut, Inc., Class A(b)

     2,415       22,049  

Ethan Allen Interiors, Inc.

     1,387       38,739  

GoPro, Inc., Class A(a)

     7,829       33,508  

Green Brick Partners, Inc.(a)

     1,635       60,936  

Helen of Troy Ltd.(a)

     1,442       144,690  

Installed Building Products, Inc.

     1,423       176,836  

iRobot Corp.(a)

     1,621       63,754  

KB Home

     4,940       216,471  

La-Z-Boy, Inc.

     2,588       74,353  

Legacy Housing Corp.(a)

     563       12,161  

Leggett & Platt, Inc.

     7,962       257,252  

LGI Homes, Inc.(a)(b)

     1,239       147,193  

M/I Homes, Inc.(a)

     1,664       112,553  

MDC Holdings, Inc.

     3,514       143,969  

Meritage Homes Corp.

     2,199       281,582  

Mohawk Industries, Inc.(a)(b)

     3,184       337,186  

Newell Brands, Inc.

     22,613       274,748  

Skyline Champion Corp.(a)

     3,213       238,308  

Snap One Holdings Corp.(a)(b)

     1,012       9,877  

Sonos, Inc.(a)(b)

     7,698       162,736  

Taylor Morrison Home Corp., Class A(a)

     6,514       280,688  

Tempur Sealy International, Inc.

     10,250       384,067  

Toll Brothers, Inc.

     6,183       395,156  

TopBuild Corp.(a)

     1,930       435,176  

Traeger, Inc.(a)(b)

     3,314       10,075  

Tri Pointe Homes, Inc.(a)

     6,067       174,002  

Vizio Holding Corp., Class A(a)(b)

     3,322       28,470  
   

 

 

  
      4,777,930  
Household Products — 0.3%            

Central Garden & Pet Co.(a)

     582       21,441  

Central Garden & Pet Co., Class A, NVS(a)

     2,515       88,855  

Energizer Holdings, Inc.

     4,014       134,188  

Reynolds Consumer Products, Inc.

     3,283       92,022  
 

 

 

28  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Products (continued)            

Spectrum Brands Holdings, Inc.

     2,471     $ 164,322  

WD-40 Co.

     825       157,080  
   

 

 

  
      657,908  
Independent Power and Renewable Electricity Producers — 0.3%  

Altus Power, Inc., Class A(a)(b)

     2,103       9,548  

Clearway Energy, Inc., Class A

     2,133       61,814  

Clearway Energy, Inc., Class C

     4,943       150,119  

Montauk Renewables, Inc.(a)

     3,722       24,751  

Ormat Technologies, Inc.(b)

     3,170       272,018  

Sunnova Energy International, Inc.(a)(b)

     5,970       107,221  
   

 

 

  
      625,471  
Industrial REITs — 0.7%            

First Industrial Realty Trust, Inc.

     7,945       416,874  

Indus Realty Trust, Inc.

     312       20,770  

Innovative Industrial Properties, Inc.

     1,696       116,261  

LXP Industrial Trust

     16,649       156,501  

Plymouth Industrial REIT, Inc.

     2,322       46,997  

STAG Industrial, Inc.

     10,791       365,491  

Terreno Realty Corp.

     4,387       270,195  
   

 

 

  
          1,393,089  
Insurance — 2.6%            

American Equity Investment Life Holding Co.

     4,183       161,213  

AMERISAFE, Inc.

     1,273       70,842  

Argo Group International Holdings Ltd.

     2,186       64,290  

Assured Guaranty Ltd.

     3,633       195,710  

Axis Capital Holdings Ltd.

     4,666       263,816  

Bright Health Group, Inc.(a)

     14,673       2,358  

Brighthouse Financial, Inc.(a)

     4,151       183,474  

BRP Group, Inc., Class A(a)(b)

     3,764       94,815  

CNO Financial Group, Inc.

     6,942       155,778  

Donegal Group, Inc., Class A

     1,210       17,037  

Employers Holdings, Inc.

     1,020       40,382  

Enstar Group Ltd.(a)

     836       201,142  

First American Financial Corp.

     6,233       359,083  

Goosehead Insurance, Inc., Class A(a)

     1,269       72,968  

Hagerty, Inc., Class A(a)(b)

     1,899       19,009  

Hanover Insurance Group, Inc.

     2,172       259,684  

Hippo Holdings, Inc.(a)(b)

     900       16,416  

Horace Mann Educators Corp.

     1,984       62,060  

James River Group Holdings Ltd.

     2,320       45,170  

Kemper Corp.

     3,852       187,400  

Lemonade, Inc.(a)(b)

     2,837       30,753  

MBIA, Inc.(a)(b)

     3,070       30,884  

Mercury General Corp.

     1,672       50,846  

National Western Life Group, Inc., Class A

     150       38,247  

Oscar Health, Inc., Class A(a)

     6,922       46,585  

Palomar Holdings, Inc.(a)(b)

     1,536       77,199  

Primerica, Inc.

     2,222       405,537  

ProAssurance Corp.

     2,298       41,272  

RenaissanceRe Holdings Ltd.

     2,642       569,113  

RLI Corp.

     2,459       341,924  

Ryan Specialty Holdings, Inc., Class A(a)(b)

     5,027       205,403  

Safety Insurance Group, Inc.

     676       49,409  

Selective Insurance Group, Inc.

     3,656       352,183  

SiriusPoint Ltd.(a)

     5,293       45,996  

Stewart Information Services Corp.

     1,375       57,269  

Tiptree, Inc.

     1,235       17,006  

Trupanion, Inc.(a)(b)

     2,131       74,819  

United Fire Group, Inc.

     1,321       35,535  

White Mountains Insurance Group Ltd.(b)

     153       219,117  
   

 

 

  
      5,161,744  
Security   Shares     Value  
Interactive Media & Services — 0.6%            

Bumble, Inc., Class A(a)

     5,601     $ 101,994  

Cargurus, Inc., Class A(a)

     5,676       93,314  

Cars.com, Inc.(a)

     3,781       73,994  

Eventbrite, Inc., Class A(a)(b)

     4,931       35,848  

fuboTV, Inc.(a)(b)

     11,920       13,589  

IAC, Inc.(a)(b)

     4,702       243,423  

MediaAlpha, Inc., Class A(a)

     1,337       9,894  

Nextdoor Holdings, Inc., Class A(a)(b)

     7,668       16,180  

QuinStreet, Inc.(a)

     3,025       33,608  

Rumble, Inc., Class A(a)(b)

     4,774       38,001  

Shutterstock, Inc.

     1,445       96,815  

System1, Inc., Class A(a)

     1,231       3,545  

TripAdvisor, Inc.(a)

     6,280       111,344  

Vimeo, Inc.(a)

     9,300       30,597  

Yelp, Inc.(a)

     4,221       126,292  

Ziff Davis, Inc.(a)(b)

     2,843       207,937  

ZipRecruiter, Inc., Class A(a)

     3,149       53,344  
   

 

 

  
          1,289,719  
IT Services — 0.4%            

BigCommerce Holdings, Inc., Series 1(a)

     3,623       26,774  

Cerberus Cyber Sentinel Corp.(a)

     6,525       1,384  

Cyxtera Technologies, Inc., Class A(a)

     3,297       1,072  

DigitalOcean Holdings, Inc.(a)(b)

     3,661       115,468  

Edgio, Inc.(a)(b)

     7,732       5,111  

Fastly, Inc., Class A(a)(b)

     6,736       99,558  

Grid Dynamics Holdings, Inc., Class A(a)

     3,065       33,317  

Hackett Group, Inc.

     1,468       27,246  

Kyndryl Holdings, Inc.(a)

     12,419       179,579  

Perficient, Inc.(a)

     2,093       135,878  

Rackspace Technology, Inc.(a)(b)

     3,374       4,926  

Squarespace, Inc., Class A(a)

     2,482       77,190  

Thoughtworks Holding, Inc.(a)(b)

     4,110       25,605  

Tucows, Inc., Class A(a)

     596       13,344  

Unisys Corp.(a)(b)

     4,048       12,994  
   

 

 

  
      759,446  
Leisure Products — 0.9%            

Acushnet Holdings Corp.

     1,942       97,352  

Brunswick Corp.

     4,360       369,684  

Clarus Corp.

     1,669       16,239  

Johnson Outdoors, Inc., Class A

     345       20,010  

Latham Group, Inc.(a)(b)

     2,511       6,052  

Malibu Boats, Inc., Class A(a)

     1,219       69,178  

MasterCraft Boat Holdings, Inc.(a)(b)

     1,060       31,026  

Peloton Interactive, Inc., Class A(a)(b)

     19,667       174,643  

Polaris, Inc.

     3,283       356,698  

Smith & Wesson Brands, Inc.

     2,748       33,031  

Sturm Ruger & Co., Inc.

     1,051       60,496  

Topgolf Callaway Brands Corp.(a)(b)

     8,353       185,186  

Vista Outdoor, Inc.(a)(b)

     3,406       82,085  

YETI Holdings, Inc.(a)

     5,199       205,101  
   

 

 

  
      1,706,781  
Life Sciences Tools & Services — 0.8%            

10X Genomics, Inc., Class A(a)(b)

     5,780       303,045  

AbCellera Biologics, Inc.(a)(b)

     12,556       85,130  

Adaptive Biotechnologies Corp.(a)(b)

     6,587       47,031  

Azenta, Inc.(a)

     4,158       180,831  

BioLife Solutions, Inc.(a)

     2,024       35,541  

Bionano Genomics, Inc.(a)(b)

     17,368       11,948  

CryoPort, Inc.(a)(b)

     2,910       61,226  

Maravai LifeSciences Holdings, Inc., Class A(a)(b)

     6,604       91,069  

Medpace Holdings, Inc.(a)

     1,518       303,813  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   29

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Life Sciences Tools & Services (continued)            

NanoString Technologies, Inc.(a)

     2,549     $ 24,980  

OmniAb, Inc., 12.50 Earnout Shares(c)

     359       —  

OmniAb, Inc., 15.00 Earnout Shares(c)

     359       —  

Pacific Biosciences of California, Inc.(a)(b)

     13,730       145,538  

Quanterix Corp.(a)

     2,157       27,265  

Seer, Inc., Class A(a)

     2,197       7,338  

SomaLogic, Inc., Class A(a)(b)

     8,997       25,192  

Sotera Health Co.(a)(b)

     5,985       100,369  

Syneos Health, Inc., Class A(a)

     6,185       242,823  
   

 

 

  
      1,693,139  
Machinery — 3.4%            

3D Systems Corp.(a)

     7,964       72,950  

Alamo Group, Inc.

     623       110,103  

Albany International Corp., Class A

     1,877       171,201  

Allison Transmission Holdings, Inc.

     5,567       271,614  

Astec Industries, Inc.

     1,366       56,388  

Barnes Group, Inc.

     3,062       128,696  

CIRCOR International, Inc.(a)

     1,252       34,856  

Columbus McKinnon Corp.

     1,712       59,423  

Crane NXT Co.

     2,876       136,207  

Desktop Metal, Inc., Class A(a)(b)

     13,832       30,430  

Donaldson Co., Inc.

     7,348       466,965  

Douglas Dynamics, Inc.

     1,382       40,506  

Energy Recovery, Inc.(a)

     3,405       76,715  

Enerpac Tool Group Corp., Class A

     3,464       82,305  

EnPro Industries, Inc.

     1,263       119,063  

Esab Corp.

     3,136       183,017  

Evoqua Water Technologies Corp.(a)

     7,374       364,644  

Federal Signal Corp.

     3,646       187,331  

Flowserve Corp.

     7,851       262,145  

Franklin Electric Co., Inc.

     2,339       209,270  

Gates Industrial Corp. PLC(a)

     6,125       82,504  

Gorman-Rupp Co.

     1,352       33,192  

Greenbrier Cos., Inc.

     1,953       51,657  

Helios Technologies, Inc.

     1,976       118,837  

Hillenbrand, Inc.

     4,187       191,011  

Hillman Solutions Corp.(a)

     8,751       73,508  

Hyliion Holdings Corp., Class A(a)(b)

     7,956       10,900  

Hyster-Yale Materials Handling, Inc., Class A

     641       33,755  

Hyzon Motors, Inc., Class A(a)(b)

     5,417       4,505  

ITT, Inc.

     4,994       421,693  

John Bean Technologies Corp.

     1,913       207,962  

Kadant, Inc.

     701       130,267  

Kennametal, Inc.

     4,874       126,529  

Lindsay Corp.

     661       79,809  

Luxfer Holdings PLC

     1,605       24,476  

Markforged Holding Corp.(a)(b)

     5,169       5,039  

Microvast Holdings, Inc.(a)(b)

     11,221       11,782  

Mueller Industries, Inc.

     3,439       247,092  

Mueller Water Products, Inc., Class A

     9,425       126,295  

Nikola Corp.(a)(b)

     22,142       19,607  

Omega Flex, Inc.(b)

     178       19,582  

Oshkosh Corp.

     3,936       301,183  

Proterra, Inc.(a)(b)

     11,548       13,511  

Proto Labs, Inc.(a)

     1,666       47,931  

REV Group, Inc.

     1,911       20,505  

Shyft Group, Inc.

     1,970       49,408  

SPX Technologies, Inc.(a)

     2,720       173,210  

Standex International Corp.

     725       89,037  

Symbotic, Inc., Class A(a)

     894       23,745  

Tennant Co.

     1,145       87,501  

Terex Corp.

     4,093       182,507  
Security   Shares     Value  
Machinery (continued)            

Timken Co.

     3,983     $ 306,094  

Titan International, Inc.(a)

     3,063       29,895  

Trinity Industries, Inc.

     4,961       118,816  

Velo3D, Inc.(a)(b)

     3,714       8,691  

Wabash National Corp.

     2,850       73,159  

Watts Water Technologies, Inc., Class A

     1,652       267,178  
   

 

 

  
      6,876,202  
Marine Transportation — 0.2%            

Eagle Bulk Shipping, Inc.

     571       25,535  

Genco Shipping & Trading Ltd.

     2,284       35,197  

Kirby Corp.(a)

     3,618       259,917  

Matson, Inc.

     2,276       154,836  
   

 

 

  
      475,485  
Media — 1.1%            

Advantage Solutions, Inc., Class A(a)

     5,629       7,205  

Altice U.S.A., Inc., Class A(a)(b)

     12,880       45,080  

AMC Networks, Inc., Class A(a)

     1,665       29,454  

Boston Omaha Corp., Class A(a)

     1,146       23,447  

Cable One, Inc.

     292       221,456  

Clear Channel Outdoor Holdings, Inc.(a)(b)

     28,122       35,715  

DISH Network Corp., Class A(a)

     15,213       114,250  

EW Scripps Co., Class A, NVS(a)

     3,454       29,117  

Gray Television, Inc.

     5,093       39,267  

iHeartMedia, Inc., Class A(a)(b)

     6,220       21,583  

Innovid Corp.(a)

     4,401       4,133  

Integral Ad Science Holding Corp.(a)(b)

     2,206       34,700  

John Wiley & Sons, Inc., Class A

     2,564       98,893  

Magnite, Inc.(a)

     7,129       67,013  

New York Times Co., Class A

     9,909       393,883  

Nexstar Media Group, Inc., Class A

     2,271       393,905  

PubMatic, Inc., Class A(a)

     2,668       36,445  

Scholastic Corp., NVS

     1,796       69,092  

Sinclair Broadcast Group, Inc., Class A

     2,690       53,504  

Stagwell, Inc., Class A(a)

     6,118       38,054  

TechTarget, Inc.(a)

     1,600       54,544  

TEGNA, Inc.

     13,502       230,884  

Thryv Holdings, Inc.(a)

     1,828       41,057  

WideOpenWest, Inc.(a)

     3,142       35,913  
   

 

 

  
      2,118,594  
Metals & Mining — 1.5%            

5E Advanced Materials, Inc.(a)

     1,787       7,541  

Alpha Metallurgical Resources, Inc.

     876       128,387  

Arconic Corp.(a)

     6,115       151,346  

ATI, Inc.(a)(b)

     7,778       300,386  

Carpenter Technology Corp.

     2,920       154,001  

Century Aluminum Co.(a)

     3,120       26,801  

Coeur Mining, Inc.(a)(b)

     17,142       58,283  

Commercial Metals Co.

     7,050       329,164  

Compass Minerals International, Inc.

     2,035       66,606  

Haynes International, Inc.

     763       35,869  

Hecla Mining Co.

     33,995       205,670  

Ivanhoe Electric, Inc.(a)(b)

     859       10,231  

Kaiser Aluminum Corp.

     971       63,814  

Materion Corp.

     1,234       133,654  

MP Materials Corp., Class A(a)(b)

     5,556       120,398  

Piedmont Lithium, Inc.(a)

     976       56,120  

Ramaco Resources, Inc.

     1,439       11,699  

Royal Gold, Inc.

     3,956       523,933  

Ryerson Holding Corp.

     1,234       46,608  

Schnitzer Steel Industries, Inc., Class A

     1,571       45,386  

SunCoke Energy, Inc.

     5,163       40,168  
 

 

 

30  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Metals & Mining (continued)  

TimkenSteel Corp.(a)

     2,386     $ 39,942  

United States Steel Corp.

     13,640       312,083  

Warrior Met Coal, Inc.

     3,135       108,377  

Worthington Industries, Inc.

     1,828       108,565  
   

 

 

  
      3,085,032  
Mortgage Real Estate Investment Trusts (REITs) — 1.2%  

AGNC Investment Corp.

     34,774       344,610  

Apollo Commercial Real Estate Finance, Inc.

     7,971       80,667  

Arbor Realty Trust, Inc.

     10,360       118,829  

Ares Commercial Real Estate Corp.

     3,479       29,954  

ARMOUR Residential REIT, Inc.

     10,213       52,086  

Blackstone Mortgage Trust, Inc., Class A

     10,475       191,064  

BrightSpire Capital, Inc., Class A

     7,738       44,107  

Broadmark Realty Capital, Inc.

     8,025       39,403  

Chimera Investment Corp.

     14,215       80,741  

Claros Mortgage Trust, Inc.

     7,379       88,253  

Dynex Capital, Inc.

     3,351       39,743  

Ellington Financial, Inc.

     3,834       48,960  

Franklin BSP Realty Trust, Inc.

     4,964       62,695  

Granite Point Mortgage Trust, Inc.

     3,520       15,735  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

     5,351       151,861  

Invesco Mortgage Capital, Inc.

     2,251       23,883  

KKR Real Estate Finance Trust, Inc.

     3,497       37,558  

Ladder Capital Corp., Class A

     6,753       63,141  

MFA Financial, Inc.

     5,626       60,142  

New York Mortgage Trust, Inc.

     5,568       57,239  

PennyMac Mortgage Investment Trust

     5,493       68,278  

Ready Capital Corp.

     6,047       64,884  

Redwood Trust, Inc.

     7,012       44,035  

Rithm Capital Corp.

     28,746       234,567  

Starwood Property Trust, Inc.

     18,377       328,765  

TPG RE Finance Trust, Inc.

     3,711       26,460  

Two Harbors Investment Corp.

     5,898       82,159  
   

 

 

  
            2,479,819  
Multi-Utilities — 0.3%            

Avista Corp.

     4,204       185,270  

Black Hills Corp.

     3,922       256,067  

NorthWestern Corp.

     3,482       204,115  

Unitil Corp.

     979       54,423  
   

 

 

  
      699,875  
Office REITs — 0.8%            

Brandywine Realty Trust

     10,122       39,780  

City Office REIT, Inc.

     2,409       14,020  

Corporate Office Properties Trust

     6,769       154,942  

Cousins Properties, Inc.

     9,177       200,150  

Douglas Emmett, Inc.

     10,699       137,803  

Easterly Government Properties, Inc.

     5,478       77,076  

Equity Commonwealth

     6,660       137,995  

Highwoods Properties, Inc.

     6,398       146,642  

Hudson Pacific Properties, Inc.

     7,660       42,590  

JBG SMITH Properties

     5,989       85,463  

Kilroy Realty Corp.

     6,326       184,972  

Office Properties Income Trust

     2,948       19,221  

Orion Office REIT, Inc.

     3,389       20,808  

Paramount Group, Inc.

     9,841       42,612  

Piedmont Office Realty Trust, Inc., Class A

     7,472       48,643  

SL Green Realty Corp.

     3,878       91,792  

Vornado Realty Trust

     9,671       145,162  
   

 

 

  
      1,589,671  
Security   Shares     Value  
Oil, Gas & Consumable Fuels — 2.6%  

Amplify Energy Corp.(a)

     2,270     $ 15,686  

Antero Midstream Corp.

     20,443       219,967  

Arch Resources, Inc., Class A

     1,093       133,619  

Berry Corp.

     3,910       29,872  

California Resources Corp.

     4,427       179,293  

Callon Petroleum Co.(a)

     3,084       102,204  

Centrus Energy Corp., Class A(a)

     620       18,166  

Chord Energy Corp.

     2,517       358,245  

Civitas Resources, Inc.

     3,141       216,886  

Clean Energy Fuels Corp.(a)(b)

     10,508       44,869  

CNX Resources Corp.(a)

     10,241       159,043  

Comstock Resources, Inc.

     5,504       63,296  

CONSOL Energy, Inc.

     1,980       117,493  

Crescent Energy Co., Class A

     2,244       26,075  

CVR Energy, Inc.

     1,963       51,705  

Delek U.S. Holdings, Inc.

     4,452       96,831  

Denbury, Inc.(a)

     3,005       280,607  

Dorian LPG Ltd.

     1,926       42,796  

DT Midstream, Inc.

     5,851       288,279  

Earthstone Energy, Inc., Class A(a)(b)

     2,250       30,510  

Enviva, Inc.

     1,846       39,689  

Equitrans Midstream Corp.

     26,278       135,332  

Excelerate Energy, Inc., Class A

     1,053       22,640  

Gevo, Inc.(a)(b)

     16,965       19,679  

Gran Tierra Energy, Inc.(a)

     22,326       17,892  

Green Plains, Inc.(a)(b)

     1,656       56,586  

Gulfport Energy Corp.(a)

     696       62,960  

HighPeak Energy, Inc.(b)

     849       16,776  

International Seaways, Inc.

     2,442       97,240  

Kinetik Holdings, Inc., Class A

     1,306       40,225  

Kosmos Energy Ltd.(a)

     27,583       176,531  

Magnolia Oil & Gas Corp., Class A

     10,126       213,861  

NextDecade Corp.(a)(b)

     3,707       23,095  

Northern Oil & Gas, Inc.

     4,461       147,971  

Par Pacific Holdings, Inc.(a)

     3,533       82,778  

PBF Energy, Inc., Class A

     6,923       241,336  

PDC Energy, Inc.

     5,551       361,093  

Peabody Energy Corp.(a)(b)

     7,012       168,428  

Permian Resources Corp., Class A

     14,198       148,369  

Ranger Oil Corp., Class A

     1,185       48,822  

REX American Resources Corp.(a)

     1,125       31,826  

Riley Exploration Permian, Inc.

     272       11,427  

SandRidge Energy, Inc.(a)

     1,829       25,917  

SilverBow Resources, Inc.(a)(b)

     801       19,104  

SM Energy Co.

     7,443       208,999  

Talos Energy, Inc.(a)

     3,986       54,329  

Tellurian, Inc.(a)(b)

     31,979       45,410  

Uranium Energy Corp.(a)(b)

     22,226       58,010  

VAALCO Energy, Inc.

     6,282       26,887  

Vertex Energy, Inc.(a)(b)

     3,650       28,835  

Vital Energy, Inc.(a)

     1,009       46,949  

W&T Offshore, Inc.(a)(b)

     5,726       25,023  

World Fuel Services Corp.

     3,777       89,288  
   

 

 

  
            5,268,749  
Paper & Forest Products — 0.2%            

Clearwater Paper Corp.(a)

     988       35,667  

Louisiana-Pacific Corp.

     4,308       257,360  

Mercer International, Inc.

     2,429       23,634  

Sylvamo Corp.

     1,927       88,295  
   

 

 

  
      404,956  
Passenger Airlines — 0.5%            

Alaska Air Group, Inc.(a)

     7,668       333,251  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   31

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Passenger Airlines (continued)  

Allegiant Travel Co.(a)

     951     $ 98,819  

Frontier Group Holdings, Inc.(a)(b)

     2,215       21,020  

Hawaiian Holdings, Inc.(a)(b)

     3,058       25,473  

JetBlue Airways Corp.(a)

     19,638       140,215  

Joby Aviation, Inc., Class A(a)(b)

     17,507       75,805  

SkyWest, Inc.(a)

     3,033       85,834  

Spirit Airlines, Inc.

     6,601       112,877  

Sun Country Airlines Holdings, Inc.(a)

     1,924       37,961  

Wheels Up Experience, Inc., Class A(a)(b)

     10,104       4,673  
   

 

 

  
      935,928  
Personal Care Products — 0.8%            

Beauty Health Co., Class A(a)

     5,601       64,187  

BellRing Brands, Inc.(a)

     8,066       290,295  

Coty, Inc., Class A(a)

     22,106       262,398  

Edgewell Personal Care Co.

     3,096       135,202  

elf Beauty, Inc.(a)

     3,062       284,031  

Herbalife Ltd.(a)(b)

     5,860       87,080  

Inter Parfums, Inc.

     1,080       163,933  

Medifast, Inc.

     659       60,397  

Nu Skin Enterprises, Inc., Class A

     3,006       118,617  

Olaplex Holdings, Inc.(a)

     4,917       18,193  

USANA Health Sciences, Inc.(a)

     672       44,601  

Veru, Inc.(a)(b)

     3,113       3,954  
   

 

 

  
            1,532,888  
Pharmaceuticals — 1.5%            

Aclaris Therapeutics, Inc.(a)

     3,073       27,319  

Amphastar Pharmaceuticals, Inc.(a)

     2,293       82,021  

Amylyx Pharmaceuticals, Inc.(a)

     2,391       67,904  

ANI Pharmaceuticals, Inc.(a)

     723       27,272  

Arvinas, Inc.(a)

     2,918       76,481  

Atea Pharmaceuticals, Inc.(a)(b)

     4,484       14,663  

Axsome Therapeutics, Inc.(a)(b)

     2,064       147,638  

Cara Therapeutics, Inc.(a)(b)

     2,670       11,214  

Cassava Sciences, Inc.(a)(b)

     2,372       55,078  

Collegium Pharmaceutical, Inc.(a)

     2,013       46,842  

Corcept Therapeutics, Inc.(a)

     5,407       121,820  

DICE Therapeutics, Inc.(a)

     2,030       65,975  

Edgewise Therapeutics, Inc.(a)(b)

     2,396       21,013  

Elanco Animal Health, Inc.(a)

     26,974       255,444  

Esperion Therapeutics, Inc.(a)(b)

     4,232       5,586  

Evolus, Inc.(a)

     2,272       19,857  

Harmony Biosciences Holdings, Inc.(a)

     1,768       57,000  

Innoviva, Inc.(a)

     3,739       43,858  

Intra-Cellular Therapies, Inc.(a)

     5,304       329,644  

Ligand Pharmaceuticals, Inc.(a)

     959       73,220  

Nektar Therapeutics(a)

     11,469       8,628  

NGM Biopharmaceuticals, Inc.(a)(b)

     2,191       9,881  

Pacira BioSciences, Inc.(a)

     2,789       126,370  

Perrigo Co. PLC

     8,104       301,388  

Phathom Pharmaceuticals, Inc.(a)

     1,427       15,269  

Prestige Consumer Healthcare, Inc.(a)(b)

     2,996       184,344  

Reata Pharmaceuticals, Inc., Class A(a)(b)

     1,696       167,666  

Revance Therapeutics, Inc.(a)

     4,946       157,431  

Scilex Holding Co. (Acquired 01/09/23, cost $19,912)(a)(d)

     3,943       27,548  

SIGA Technologies, Inc.

     2,371       13,823  

Supernus Pharmaceuticals, Inc.(a)

     3,289       121,232  

Tarsus Pharmaceuticals, Inc.(a)

     1,091       16,278  

Theravance Biopharma, Inc.(a)(b)

     3,433       37,179  

Third Harmonic Bio, Inc.(a)(b)

     664       3,008  

Tilray Brands, Inc.(a)(b)

     36,851       86,600  
Security   Shares     Value  
Pharmaceuticals (continued)  

Ventyx Biosciences, Inc.(a)

     1,647     $ 61,927  

WaVe Life Sciences Ltd.(a)

     3,723       14,855  
   

 

 

  
      2,903,276  
Professional Services — 2.7%            

Alight, Inc., Class A(a)

     19,104       176,712  

ASGN, Inc.(a)

     2,997       214,555  

Barrett Business Services, Inc.

     421       35,200  

CACI International, Inc., Class A(a)(b)

     1,415       443,348  

CBIZ, Inc.(a)

     3,023       159,282  

Conduent, Inc.(a)

     10,097       35,440  

CRA International, Inc.

     427       44,895  

CSG Systems International, Inc.

     1,804       95,035  

Dun & Bradstreet Holdings, Inc.

     13,120       146,550  

ExlService Holdings, Inc.(a)

     1,990       354,976  

Exponent, Inc.

     3,063       281,949  

First Advantage Corp.(a)(b)

     3,543       45,563  

FiscalNote Holdings, Inc., Class A(a)

     4,255       7,702  

Forrester Research, Inc.(a)

     666       20,606  

Franklin Covey Co.(a)

     723       26,549  

FTI Consulting, Inc.(a)

     2,075       374,537  

Heidrick & Struggles International, Inc.

     1,224       30,735  

HireRight Holdings Corp.(a)(b)

     1,138       12,063  

Huron Consulting Group, Inc.(a)(b)

     1,194       101,239  

ICF International, Inc.

     1,023       116,622  

Insperity, Inc.

     2,147       262,922  

KBR, Inc.

     8,261       468,646  

Kelly Services, Inc., Class A, NVS

     2,076       34,067  

Kforce, Inc.

     1,186       70,140  

Korn Ferry

     3,193       153,328  

Legalzoom.com, Inc.(a)(b)

     5,766       54,085  

ManpowerGroup, Inc.

     3,043       230,385  

Maximus, Inc.

     3,675       307,414  

NV5 Global, Inc.(a)

     747       70,763  

Paycor HCM, Inc.(a)(b)

     2,898       68,103  

Planet Labs PBC, Class A(a)(b)

     11,838       48,299  

Resources Connection, Inc.

     1,936       28,246  

Science Applications International Corp.

     3,288       335,475  

Sterling Check Corp.(a)(b)

     1,354       15,219  

TaskUS, Inc., Class A(a)(b)

     1,570       21,132  

TriNet Group, Inc.(a)(b)

     2,228       206,714  

TrueBlue, Inc.(a)

     1,924       29,149  

TTEC Holdings, Inc.

     1,118       38,090  

Upwork, Inc.(a)

     7,210       69,000  

Verra Mobility Corp., Class A(a)(b)

     8,382       142,075  
   

 

 

  
            5,376,810  
Real Estate Management & Development — 0.5%  

Anywhere Real Estate, Inc.(a)

     6,575       41,883  

Compass, Inc., Class A(a)

     15,649       36,619  

Cushman & Wakefield PLC(a)

     9,751       96,047  

DigitalBridge Group, Inc., Class A

     8,725       108,452  

eXp World Holdings, Inc.

     4,495       52,547  

Forestar Group, Inc.(a)(b)

     1,130       21,854  

FRP Holdings, Inc.(a)

     380       22,040  

Howard Hughes Corp.(a)(b)

     2,069       160,079  

Kennedy-Wilson Holdings, Inc.

     7,092       119,004  

Marcus & Millichap, Inc.

     1,533       48,243  

Newmark Group, Inc., Class A

     7,480       47,423  

Opendoor Technologies, Inc.(a)(b)

     30,182       41,651  

Redfin Corp.(a)(b)

     6,581       49,028  

RMR Group, Inc., Class A

     930       22,087  

Seritage Growth Properties, Class A(a)

     2,142       16,044  
 

 

 

32  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Real Estate Management & Development (continued)  

St. Joe Co.

     2,065     $ 84,871  

WeWork, Inc., Class A(a)(b)

     13,914       5,865  
   

 

 

  
      973,737  
Residential REITs — 0.5%            

Apartment Income REIT Corp.

     8,942       330,675  

Apartment Investment & Management Co., Class A

     9,087       71,151  

BRT Apartments Corp.

     747       12,946  

Centerspace

     923       52,039  

Elme Communities

     5,314       91,560  

Independence Realty Trust, Inc.

     13,458       224,076  

NexPoint Residential Trust, Inc.

     1,356       58,213  

UMH Properties, Inc.

     3,375       51,300  

Veris Residential, Inc.(a)

     4,844       79,199  
   

 

 

  
      971,159  
Retail REITs — 1.2%            

Acadia Realty Trust

     5,700       77,007  

Agree Realty Corp.

     5,325       362,047  

Alexander’s, Inc.

     127       23,631  

CBL & Associates Properties, Inc.

     1,463       33,839  

Getty Realty Corp.

     2,462       82,058  

InvenTrust Properties Corp.

     4,100       92,455  

Kite Realty Group Trust

     13,247       274,478  

Macerich Co.(b)

     12,810       127,972  

Necessity Retail REIT, Inc., Class A

     7,994       44,047  

NETSTREIT Corp.

     3,268       59,543  

Phillips Edison & Co., Inc.

     7,089       223,587  

Retail Opportunity Investments Corp.

     7,510       97,855  

RPT Realty

     5,115       47,570  

Saul Centers, Inc.

     796       28,680  

SITE Centers Corp.

     11,147       137,554  

Spirit Realty Capital, Inc.

     8,421       323,872  

Tanger Factory Outlet Centers, Inc.

     6,271       122,974  

Urban Edge Properties

     7,400       108,558  

Urstadt Biddle Properties, Inc., Class A

     1,853       31,909  

Whitestone REIT

     2,794       25,006  
   

 

 

  
            2,324,642  
Semiconductors & Semiconductor Equipment — 2.6%  

Allegro MicroSystems, Inc.(a)

     3,942       141,005  

Alpha & Omega Semiconductor Ltd.(a)(b)

     1,368       32,668  

Ambarella, Inc.(a)

     2,216       137,348  

Amkor Technology, Inc.

     6,076       135,920  

Axcelis Technologies, Inc.(a)

     1,981       234,352  

CEVA, Inc.(a)

     1,383       34,755  

Cirrus Logic, Inc.(a)

     3,341       286,624  

Cohu, Inc.(a)

     2,863       96,884  

Credo Technology Group Holding Ltd.(a)(b)

     5,480       44,443  

Diodes, Inc.(a)

     2,735       217,979  

FormFactor, Inc.(a)

     4,672       127,592  

Ichor Holdings Ltd.(a)(b)

     1,710       47,624  

Impinj, Inc.(a)

     1,287       113,784  

indie Semiconductor, Inc., Class A(a)

     4,145       31,378  

Kulicke & Soffa Industries, Inc.

     3,407       162,378  

Lattice Semiconductor Corp.(a)

     8,263       658,561  

MACOM Technology Solutions Holdings, Inc.(a)

     3,128       182,488  

Magnachip Semiconductor Corp.(a)

     2,571       22,830  

MaxLinear, Inc.(a)

     4,367       105,376  

MKS Instruments, Inc.

     3,436       288,177  

Navitas Semiconductor Corp.(a)(b)

     4,686       24,976  

Onto Innovation, Inc.(a)

     2,979       241,239  

PDF Solutions, Inc.(a)

     1,771       63,845  

Photronics, Inc.(a)

     3,687       53,314  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Power Integrations, Inc.

     3,423     $ 249,126  

Rambus, Inc.(a)

     6,480       287,323  

Semtech Corp.(a)

     3,809       74,237  

Silicon Laboratories, Inc.(a)(b)

     1,917       267,038  

SiTime Corp.(a)

     978       106,084  

SMART Global Holdings, Inc.(a)

     3,022       46,599  

Synaptics, Inc.(a)(b)

     2,376       210,419  

Ultra Clean Holdings, Inc.(a)

     2,774       79,170  

Universal Display Corp.

     2,624       350,199  

Veeco Instruments, Inc.(a)

     3,092       56,955  
   

 

 

  
            5,212,690  
Software — 5.9%            

8x8, Inc.(a)(b)

     6,976       20,021  

A10 Networks, Inc.

     3,837       54,255  

ACI Worldwide, Inc.(a)

     6,802       172,295  

Adeia, Inc.

     6,409       48,965  

Agilysys, Inc.(a)

     1,204       93,960  

Alarm.com Holdings, Inc.(a)

     3,037       144,835  

Alkami Technology, Inc.(a)

     2,153       25,814  

Altair Engineering, Inc., Class A(a)(b)

     3,148       217,369  

Alteryx, Inc., Class A(a)

     3,704       152,346  

American Software, Inc., Class A

     1,950       23,283  

Amplitude, Inc., Class A(a)(b)

     3,231       36,672  

Appfolio, Inc., Class A(a)(b)

     1,146       160,005  

Appian Corp., Class A(a)(b)

     2,477       93,011  

AppLovin Corp., Class A(a)(b)

     7,426       126,242  

Asana, Inc., Class A(a)

     4,600       74,428  

AvePoint, Inc., Class A(a)(b)

     5,367       23,293  

Blackbaud, Inc.(a)

     2,694       186,842  

Blackline, Inc.(a)

     3,289       183,230  

Blend Labs, Inc., Class A(a)(b)

     10,822       6,408  

Box, Inc., Class A(a)

     8,620       228,085  

Braze, Inc., Class A(a)

     2,128       62,563  

C3.ai, Inc., Class A(a)(b)

     5,156       91,880  

CCC Intelligent Solutions Holdings, Inc.(a)(b)

     6,395       55,509  

Cerence, Inc.(a)

     2,447       62,521  

Clear Secure, Inc., Class A(b)

     4,685       113,330  

Clearwater Analytics Holdings, Inc., Class A(a)(b)

     3,939       60,700  

CommVault Systems, Inc.(a)

     2,693       156,921  

Confluent, Inc., Class A(a)(b)

     9,295       204,490  

Consensus Cloud Solutions, Inc.(a)

     1,062       39,644  

Couchbase, Inc.(a)

     1,448       22,241  

CS Disco, Inc.(a)

     1,022       6,009  

Cvent Holding Corp.(a)(b)

     3,922       32,984  

Digital Turbine, Inc.(a)

     5,372       63,014  

Dolby Laboratories, Inc., Class A

     3,616       302,623  

Domo, Inc., Class B(a)

     1,830       29,060  

DoubleVerify Holdings, Inc.(a)

     5,303       156,014  

Dropbox, Inc., Class A(a)

     16,263       330,789  

E2open Parent Holdings, Inc., Class A(a)(b)

     10,279       64,655  

Ebix, Inc.

     1,390       22,601  

Elastic NV(a)

     4,661       266,842  

Enfusion, Inc., Class A(a)

     782       6,553  

EngageSmart, Inc.(a)

     1,767       30,339  

Envestnet, Inc.(a)

     2,878       182,408  

Everbridge, Inc.(a)

     2,437       64,044  

EverCommerce, Inc.(a)(b)

     1,730       20,881  

Expensify, Inc., Class A(a)

     2,637       20,015  

Five9, Inc.(a)

     4,242       275,051  

Freshworks, Inc., Class A(a)(b)

     9,735       130,060  

Gitlab, Inc., Class A(a)

     3,787       114,973  

Guidewire Software, Inc.(a)(b)

     4,946       376,836  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   33

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)  

HashiCorp, Inc., Class A(a)(b)

     4,930     $ 132,173  

Informatica, Inc., Class A(a)

     2,381       36,810  

Instructure Holdings, Inc.(a)(b)

     1,063       28,201  

Intapp, Inc.(a)

     941       37,941  

InterDigital, Inc.

     1,638       110,958  

Jamf Holding Corp.(a)

     2,670       50,516  

JFrog Ltd.(a)

     3,637       67,539  

LivePerson, Inc.(a)

     4,173       19,321  

LiveRamp Holdings, Inc.(a)

     3,909       94,168  

Marathon Digital Holdings, Inc.(a)(b)

     6,653       66,996  

Matterport, Inc., Class A(a)(b)

     13,366       31,143  

MeridianLink, Inc.(a)(b)

     1,177       17,584  

MicroStrategy, Inc., Class A(a)(b)

     577       189,475  

Mitek Systems, Inc.(a)(b)

     2,612       23,560  

Model N, Inc.(a)(b)

     2,058       63,386  

Momentive Global, Inc.(a)

     7,630       71,646  

N-able, Inc.(a)

     3,988       50,847  

nCino, Inc.(a)(b)

     4,666       115,390  

NCR Corp.(a)

     8,294       184,873  

New Relic, Inc.(a)

     3,527       252,075  

Nutanix, Inc., Class A(a)

     13,900       333,322  

Olo, Inc., Class A(a)(b)

     6,369       43,628  

ON24, Inc.(a)

     2,538       22,081  

OneSpan, Inc.(a)

     2,115       31,175  

PagerDuty, Inc.(a)(b)

     4,967       149,308  

Pegasystems, Inc.

     2,474       112,864  

PowerSchool Holdings, Inc., Class A(a)

     2,392       49,945  

Progress Software Corp.

     2,604       142,908  

PROS Holdings, Inc.(a)

     2,450       69,507  

Q2 Holdings, Inc.(a)

     3,470       85,431  

Qualtrics International, Inc., Class A(a)(b)

     6,814       122,175  

Qualys, Inc.(a)(b)

     2,090       236,045  

Rapid7, Inc.(a)

     3,557       172,906  

Rimini Street, Inc.(a)

     2,937       10,984  

RingCentral, Inc., Class A(a)

     4,717       130,001  

Riot Platforms, Inc.(a)(b)

     10,131       121,167  

Samsara, Inc., Class A(a)

     6,813       122,975  

SEMrush Holdings, Inc., Class A(a)(b)

     2,105       20,334  

SentinelOne, Inc., Class A(a)(b)

     13,176       211,738  

Smartsheet, Inc., Class A(a)

     7,901       322,914  

SolarWinds Corp.(a)

     2,967       25,576  

SoundHound AI, Inc., Class A(a)(b)

     6,966       18,530  

SoundThinking, Inc.(a)(b)

     518       15,411  

Sprinklr, Inc., Class A(a)

     3,712       44,396  

Sprout Social, Inc., Class A(a)

     2,848       140,293  

SPS Commerce, Inc.(a)

     2,172       319,936  

Sumo Logic, Inc.(a)

     6,728       80,736  

Telos Corp.(a)(b)

     3,298       5,607  

Tenable Holdings, Inc.(a)

     6,798       251,458  

Teradata Corp.(a)

     6,122       236,983  

UiPath, Inc., Class A(a)

     21,247       299,158  

Varonis Systems, Inc.(a)

     6,482       150,123  

Verint Systems, Inc.(a)

     3,964       144,646  

Vertex, Inc., Class A(a)

     2,158       44,563  

Workiva, Inc., Class A(a)(b)

     2,765       258,306  

Xperi, Inc.(a)

     2,474       23,478  

Yext, Inc.(a)

     6,344       55,700  

ZeroFox Holdings, Inc.(a)

     1,847       1,778  

Zeta Global Holdings Corp., Class A(a)

     7,564       73,446  

Zuora, Inc., Class A(a)

     7,611       59,290  
   

 

 

  
          11,842,333  
Security   Shares     Value  
Specialized REITs — 0.7%  

EPR Properties

     4,538     $ 190,414  

Farmland Partners, Inc.

     3,012       31,445  

Four Corners Property Trust, Inc.

     5,074       129,438  

Gladstone Land Corp.

     1,981       31,914  

National Storage Affiliates Trust

     5,084       195,988  

Outfront Media, Inc.

     8,803       146,658  

PotlatchDeltic Corp.

     4,876       225,418  

Rayonier, Inc.

     8,907       279,324  

Safehold, Inc.

     2,420       67,082  

Uniti Group, Inc.

     14,452       49,426  
   

 

 

  
            1,347,107  
Specialty Retail — 2.8%            

Abercrombie & Fitch Co., Class A(a)

     2,985       70,267  

Academy Sports & Outdoors, Inc.(b)

     4,709       299,116  

American Eagle Outfitters, Inc.

     10,452       139,952  

America’s Car-Mart, Inc.(a)(b)

     354       28,458  

Arhaus, Inc., Class A(a)(b)

     1,245       9,985  

Arko Corp., Class A

     4,357       36,424  

Asbury Automotive Group, Inc.(a)

     1,334       258,076  

AutoNation, Inc.(a)

     2,057       270,907  

Boot Barn Holdings, Inc.(a)

     1,814       131,461  

Buckle, Inc.

     1,818       60,958  

Caleres, Inc.

     2,195       50,046  

Camping World Holdings, Inc., Class A

     2,443       54,699  

Carvana Co., Class A(a)(b)

     6,001       41,647  

Chewy, Inc., Class A(a)(b)

     5,603       173,749  

Chico’s FAS, Inc.(a)

     7,574       38,173  

Children’s Place, Inc.(a)(b)

     750       22,230  

Designer Brands, Inc., Class A

     3,017       24,709  

Destination XL Group, Inc.(a)

     3,428       15,049  

Dick’s Sporting Goods, Inc.

     3,601       522,181  

EVgo, Inc., Class A(a)(b)

     4,243       25,416  

Foot Locker, Inc.

     4,772       200,376  

Franchise Group, Inc.

     1,655       48,409  

Gap, Inc.

     12,677       121,699  

Genesco, Inc.(a)

     720       24,955  

Group 1 Automotive, Inc.

     879       197,318  

Guess?, Inc.

     1,822       34,345  

Haverty Furniture Cos., Inc.

     781       23,539  

Hibbett, Inc.

     767       41,671  

Leslie’s, Inc.(a)

     9,048       98,171  

Lithia Motors, Inc., Class A

     1,646       363,585  

MarineMax, Inc.(a)(b)

     1,342       39,079  

Monro, Inc.

     1,880       91,894  

National Vision Holdings, Inc.(a)

     4,742       99,772  

ODP Corp.(a)

     2,416       104,395  

OneWater Marine, Inc., Class A(a)

     641       16,922  

Overstock.com, Inc.(a)

     2,720       55,379  

Petco Health & Wellness Co., Inc.(a)(b)

     4,714       46,951  

PetMed Express, Inc.

     1,383       21,257  

Revolve Group, Inc., Class A(a)(b)

     2,439       50,365  

RH(a)

     1,130       288,297  

Sally Beauty Holdings, Inc.(a)

     6,494       92,410  

Shoe Carnival, Inc.

     1,022       23,761  

Signet Jewelers Ltd.

     2,727       200,653  

Sleep Number Corp.(a)(b)

     1,332       30,037  

Sonic Automotive, Inc., Class A

     999       44,475  

Sportsman’s Warehouse Holdings, Inc.(a)

     2,365       14,710  

Torrid Holdings, Inc.(a)

     1,281       4,381  

TravelCenters of America, Inc.(a)

     756       65,114  

Upbound Group, Inc.

     3,047       81,233  

Urban Outfitters, Inc.(a)

     3,643       98,580  
 

 

 

34  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail (continued)  

Valvoline, Inc.

     10,376     $ 358,491  

Victoria’s Secret & Co.(a)(b)

     4,872       151,081  

Warby Parker, Inc., Class A(a)(b)

     3,701       38,971  

Wayfair, Inc., Class A(a)(b)

     4,646       161,820  

Winmark Corp.

     166       55,431  

Zumiez, Inc.(a)(b)

     971       16,978  
   

 

 

  
            5,680,008  
Technology Hardware, Storage & Peripherals — 0.3%  

Avid Technology, Inc.(a)

     2,033       59,994  

Corsair Gaming, Inc.(a)

     2,506       43,654  

Eastman Kodak Co.(a)

     4,484       14,752  

IonQ, Inc.(a)(b)

     9,276       51,111  

Super Micro Computer, Inc.(a)

     2,809       296,153  

Xerox Holdings Corp.

     6,876       107,747  
   

 

 

  
      573,411  
Textiles, Apparel & Luxury Goods — 1.5%            

Capri Holdings Ltd.(a)

     7,558       313,657  

Carter’s, Inc.

     2,312       161,308  

Columbia Sportswear Co.

     2,142       178,943  

Crocs, Inc.(a)

     3,717       459,681  

G-III Apparel Group Ltd.(a)(b)

     2,585       40,585  

Hanesbrands, Inc.

     20,913       109,584  

Kontoor Brands, Inc.

     2,982       134,697  

Levi Strauss & Co., Class A

     5,826       84,244  

Movado Group, Inc.

     965       24,723  

Oxford Industries, Inc.

     898       92,665  

PVH Corp.

     3,812       327,108  

Ralph Lauren Corp., Class A

     2,477       284,335  

Skechers U.S.A., Inc., Class A(a)

     8,076       429,562  

Steven Madden Ltd.

     4,418       154,807  

Under Armour, Inc., Class A(a)

     11,346       100,639  

Under Armour, Inc., Class C, NVS(a)

     11,735       94,349  

Wolverine World Wide, Inc.

     4,703       78,728  
   

 

 

  
      3,069,615  
Tobacco — 0.1%            

Turning Point Brands, Inc.

     918       21,839  

Universal Corp.

     1,481       81,292  

Vector Group Ltd.

     8,028       102,277  
   

 

 

  
      205,408  
Trading Companies & Distributors — 2.0%            

Air Lease Corp., Class A

     6,202       249,444  

Alta Equipment Group, Inc., Class A

     1,496       21,153  

Applied Industrial Technologies, Inc.

     2,320       314,731  

Beacon Roofing Supply, Inc.(a)(b)

     3,053       183,730  

BlueLinx Holdings, Inc.(a)

     547       38,323  

Boise Cascade Co.

     2,385       162,919  

Core & Main, Inc., Class A(a)(b)

     4,447       115,889  

Custom Truck One Source, Inc.(a)

     3,629       22,790  

Distribution Solutions Group, Inc.(a)

     251       11,717  

DXP Enterprises, Inc.(a)

     939       23,663  

GATX Corp.

     2,120       241,489  

Global Industrial Co.

     996       26,543  

GMS, Inc.(a)

     2,506       145,498  

H&E Equipment Services, Inc.

     2,056       75,044  

Herc Holdings, Inc.

     1,510       151,030  

Hudson Technologies, Inc.(a)

     2,253       17,416  
Security   Shares     Value  
Trading Companies & Distributors (continued)  

McGrath RentCorp

     1,470     $ 130,654  

MRC Global, Inc.(a)

     4,958       48,291  

MSC Industrial Direct Co., Inc., Class A

     2,856       259,125  

NOW, Inc.(a)

     6,690       71,382  

Rush Enterprises, Inc., Class A

     2,546       135,218  

Rush Enterprises, Inc., Class B

     439       25,717  

SiteOne Landscape Supply, Inc.(a)(b)

     2,724       402,444  

Titan Machinery, Inc.(a)(b)

     1,219       38,216  

Transcat, Inc.(a)

     419       31,966  

Triton International Ltd.

     3,551       293,561  

Univar Solutions, Inc.(a)

     9,821       348,645  

Veritiv Corp.

     808       92,815  

WESCO International, Inc.

     2,695       388,080  
   

 

 

  
      4,067,493  
Water Utilities — 0.3%            

American States Water Co.

     2,236       198,445  

Artesian Resources Corp., Class A, NVS

     486       26,623  

California Water Service Group

     3,304       185,288  

Middlesex Water Co.

     1,050       76,629  

SJW Group

     1,623       123,218  

York Water Co.

     862       36,239  
   

 

 

  
      646,442  
Wireless Telecommunication Services — 0.1%  

Gogo, Inc.(a)

     3,903       52,339  

Shenandoah Telecommunications Co.

     3,002       62,472  

Telephone & Data Systems, Inc.

     6,045       60,450  

United States Cellular Corp.(a)

     849       18,033  
   

 

 

  
      193,294  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $225,844,869)

 

     199,734,068  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 12.5%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.02%(e)(f)(g)

     24,576,755       24,584,128  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 4.75%(e)(f)

     345,266       345,266  
   

 

 

  

Total Short-Term Securities — 12.5%
(Cost: $24,918,931)

 

     24,929,394  
   

 

 

  

Total Investments — 112.2%
(Cost: $250,763,800)

       224,663,462  

Liabilities in Excess of Other Assets — (12.2)%

 

     (24,404,157 ) 
   

 

 

  

Net Assets — 100.0%

     $   200,259,305  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $27,548, representing 0.0% of its net assets as of period end, and an original cost of $19,912.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   35

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/22		     Purchases
at Cost		     Proceeds
from Sale		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
04/30/23		     Shares
Held at
04/30/23		     Income     Capital
Gain
Distributions
from Underlying
Funds		  

BlackRock Cash Funds: Institutional, SL Agency Shares

   $   22,100,871     $   2,475,975 (a)    $       —     $ (2,948 )    $ 10,230     $ 24,584,128       24,576,755     $ 423,271 (b)    $ —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     250,000       95,266 (a)      —               —       —       345,266       345,266       11,379       —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $ (2,948 )    $     10,230     $   24,929,394       $   434,650     $           —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date		        Notional
Amount
(000)		        Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

Russel 2000 E-Mini Index

      2          06/16/23        $     178        $ (2,847 ) 

S&P Mid 400 E-Mini Index

      1          06/16/23          250          1,639  
                 

 

 

  
                  $ (1,208 ) 
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 1,639      $ —      $ —      $ —      $   1,639  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contracts(a)

    $         —      $         —      $     2,847      $         —      $         —      $         —      $ 2,847  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		     Total  

Net Realized Gain (Loss) from

                    

Futures contracts

    $ —      $ —      $ (43,488)      $ —      $ —      $ —     $   (43,488)  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

    $         —      $         —      $      10,811      $         —      $         —      $         —     $ 10,811  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

 

36  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Small-Cap ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

         

Average notional value of contracts — long

    $ 413,051  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 199,706,520        $ 27,548        $ —        $ 199,734,068  

Short-Term Securities

                  

Money Market Funds

      24,929,394          —          —          24,929,394  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $       224,635,914        $           27,548        $             —        $       224,663,462  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Equity Contracts

    $ 1,639        $ —        $ —        $ 1,639  

Liabilities

                  

Equity Contracts

      (2,847 )         —          —          (2,847 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ (1,208 )       $ —        $ —        $ (1,208 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   37

Schedule of Investments

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

    
Aerospace & Defense — 1.7%            

Axon Enterprise, Inc.(a)

     1,347     $ 283,826  

Boeing Co.(a)

     11,271       2,330,617  

General Dynamics Corp.

     4,519       986,678  

HEICO Corp.

     793       133,732  

HEICO Corp., Class A

     1,383       185,640  

Howmet Aerospace, Inc.

     7,301       323,361  

Huntington Ingalls Industries, Inc.

     809       163,143  

L3Harris Technologies, Inc.

     3,813       744,107  

Lockheed Martin Corp.

     4,555       2,115,570  

Northrop Grumman Corp.

     2,884       1,330,303  

Raytheon Technologies Corp.

     29,362       2,933,264  

Textron, Inc.

     4,190       280,479  

TransDigm Group, Inc.

     1,035       791,775  
   

 

 

  
          12,602,495  
Air Freight & Logistics — 0.6%            

CH Robinson Worldwide, Inc.

     2,367       238,759  

Expeditors International of Washington, Inc.

     3,168       360,645  

FedEx Corp.

     4,637       1,056,216  

United Parcel Service, Inc., Class B

     14,628       2,630,261  
   

 

 

  
      4,285,881  
Automobile Components — 0.1%            

Aptiv PLC(a)

     5,457       561,307  

BorgWarner, Inc.

     4,627       222,698  

Lear Corp.

     1,179       150,511  
   

 

 

  
      934,516  
Automobiles — 1.5%            

Ford Motor Co.

     78,472       932,247  

General Motors Co.

     28,049       926,739  

Lucid Group, Inc.(a)(b)

     12,870       102,188  

Rivian Automotive, Inc., Class A(a)(b)

     10,866       139,302  

Tesla, Inc.(a)

     53,905       8,857,131  
   

 

 

  
      10,957,607  
Banks — 3.1%            

Bank of America Corp.

     139,890       4,095,979  

BOK Financial Corp.

     579       48,561  

Citigroup, Inc.

     38,793       1,825,986  

Citizens Financial Group, Inc.

     9,883       305,780  

Comerica, Inc.

     2,636       114,323  

Commerce Bancshares, Inc.

     2,322       129,684  

Cullen/Frost Bankers, Inc.

     1,276       140,679  

East West Bancorp, Inc.

     2,774       143,388  

Fifth Third Bancorp

     13,784       361,141  

First Citizens BancShares, Inc., Class A

     239       240,716  

First Horizon Corp.

     10,778       189,154  

First Republic Bank(b)

     3,639       12,773  

Huntington Bancshares, Inc.

     28,829       322,885  

JPMorgan Chase & Co.

     58,791       8,127,268  

KeyCorp

     18,612       209,571  

M&T Bank Corp.

     3,405       428,349  

PNC Financial Services Group, Inc.

     8,064       1,050,336  

Regions Financial Corp.

     18,758       342,521  

Truist Financial Corp.

     26,570       865,650  

U.S. Bancorp

     27,828       953,944  

Webster Financial Corp.

     3,532       131,744  

Wells Fargo & Co.

     76,373       3,035,827  

Western Alliance Bancorp

     2,122       78,769  

Zions Bancorp N.A.

     2,953       82,270  
   

 

 

  
      23,237,298  
Security   Shares     Value  
Beverages — 1.7%  

Brown-Forman Corp., Class A

     1,124     $ 74,049  

Brown-Forman Corp., Class B, NVS

     3,663       238,425  

Coca-Cola Co.

     78,008       5,004,213  

Constellation Brands, Inc., Class A

     3,246       744,860  

Keurig Dr Pepper, Inc.

     17,128       560,086  

Molson Coors Beverage Co., Class B

     3,767       224,061  

Monster Beverage Corp.(a)

     15,196       850,976  

PepsiCo, Inc.

     27,604       5,269,327  
   

 

 

  
          12,965,997  
Biotechnology — 2.4%            

AbbVie, Inc.

     35,446       5,356,599  

Alnylam Pharmaceuticals, Inc.(a)

     2,459       489,833  

Amgen, Inc.

     10,702       2,565,697  

Biogen, Inc.(a)

     2,899       881,963  

BioMarin Pharmaceutical, Inc.(a)

     3,701       355,444  

Gilead Sciences, Inc.

     24,994       2,054,757  

Horizon Therapeutics PLC(a)

     4,555       506,334  

Incyte Corp.(a)

     3,719       276,731  

Karuna Therapeutics, Inc.(a)

     598       118,667  

Moderna, Inc.(a)

     6,598       876,808  

Neurocrine Biosciences, Inc.(a)

     1,938       195,816  

Regeneron Pharmaceuticals, Inc.(a)

     2,153       1,726,254  

Sarepta Therapeutics, Inc.(a)

     1,751       214,970  

Seagen, Inc.(a)

     2,763       552,600  

United Therapeutics Corp.(a)

     925       212,870  

Vertex Pharmaceuticals, Inc.(a)

     5,146       1,753,397  
   

 

 

  
      18,138,740  
Broadline Retail — 2.8%            

Amazon.com, Inc.(a)

     178,686       18,842,439  

Coupang, Inc., Class A(a)

     20,389       341,719  

eBay, Inc.

     10,888       505,530  

Etsy, Inc.(a)

     2,491       251,666  

MercadoLibre, Inc.(a)(b)

     927       1,184,233  
   

 

 

  
      21,125,587  
Building Products — 0.6%            

A O Smith Corp.

     2,594       177,144  

Advanced Drainage Systems, Inc.(b)

     1,277       109,464  

Allegion PLC

     1,738       192,014  

Builders FirstSource, Inc.(a)

     2,961       280,614  

Carlisle Cos., Inc.

     1,045       225,563  

Carrier Global Corp.

     16,640       695,885  

Fortune Brands Innovations, Inc.

     2,549       164,895  

Johnson Controls International PLC

     13,728       821,484  

Lennox International, Inc.

     655       184,651  

Masco Corp.

     4,496       240,581  

Owens Corning

     1,880       200,803  

Trane Technologies PLC

     4,588       852,496  
   

 

 

  
      4,145,594  
Capital Markets — 3.0%            

Ameriprise Financial, Inc.

     2,118       646,244  

Ares Management Corp., Class A

     3,083       270,040  

Bank of New York Mellon Corp.

     14,762       628,714  

BlackRock, Inc.(c)

     3,002       2,014,942  

Blackstone, Inc., Class A, NVS

     14,284       1,275,990  

Carlyle Group, Inc.

     4,323       131,117  

Charles Schwab Corp.

     30,555       1,596,193  

CME Group, Inc., Class A

     7,218       1,340,888  

Coinbase Global, Inc., Class A(a)(b)

     3,159       169,923  

FactSet Research Systems, Inc.

     771       317,413  

Franklin Resources, Inc.

     5,728       153,969  

Goldman Sachs Group, Inc.

     6,787       2,330,927  
 

 

 

38  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)  

Interactive Brokers Group, Inc., Class A

     2,053     $ 159,826  

Intercontinental Exchange, Inc.

     11,209       1,220,996  

Invesco Ltd.

     9,058       155,164  

Jefferies Financial Group, Inc.

     3,700       118,511  

KKR & Co., Inc., Class A

     11,619       616,620  

LPL Financial Holdings, Inc.

     1,599       333,935  

MarketAxess Holdings, Inc.

     757       241,006  

Moody’s Corp.

     3,162       990,085  

Morgan Stanley

     26,186       2,355,954  

Morningstar, Inc.

     498       88,798  

MSCI, Inc., Class A

     1,597       770,473  

Nasdaq, Inc.

     6,751       373,803  

Northern Trust Corp.

     4,154       324,677  

Raymond James Financial, Inc.

     3,892       352,343  

Robinhood Markets, Inc., Class A(a)(b)

     10,150       89,828  

S&P Global, Inc.

     6,599       2,392,665  

SEI Investments Co.

     1,985       116,936  

State Street Corp.

     7,019       507,193  

T Rowe Price Group, Inc.

     4,511       506,721  
   

 

 

  
          22,591,894  
Chemicals — 1.7%            

Air Products & Chemicals, Inc.

     4,451       1,310,196  

Albemarle Corp.

     2,345       434,904  

Celanese Corp., Class A

     1,980       210,355  

CF Industries Holdings, Inc.

     3,973       284,387  

Corteva, Inc.

     14,254       871,204  

Dow, Inc.

     14,127       768,509  

DuPont de Nemours, Inc.

     9,214       642,400  

Eastman Chemical Co.

     2,363       199,130  

Ecolab, Inc.

     4,984       836,515  

FMC Corp.

     2,524       311,916  

International Flavors & Fragrances, Inc.

     5,133       497,696  

Linde PLC

     9,871       3,646,841  

LyondellBasell Industries NV, Class A

     5,075       480,146  

Mosaic Co.

     6,883       294,937  

Olin Corp.

     2,475       137,115  

PPG Industries, Inc.

     4,709       660,484  

RPM International, Inc.

     2,583       211,883  

Sherwin-Williams Co.

     4,722       1,121,664  

Westlake Corp.

     670       76,233  
   

 

 

  
      12,996,515  
Commercial Services & Supplies — 0.5%            

Cintas Corp.

     1,726       786,659  

Copart, Inc.(a)

     8,636       682,676  

Republic Services, Inc.

     4,126       596,702  

Rollins, Inc.

     4,606       194,604  

Tetra Tech, Inc.

     1,058       146,395  

Waste Management, Inc.

     7,457       1,238,235  
   

 

 

  
      3,645,271  
Communications Equipment — 0.8%            

Arista Networks, Inc.(a)

     4,969       795,835  

Ciena Corp.(a)

     2,920       134,437  

Cisco Systems, Inc.

     82,339       3,890,518  

F5, Inc.(a)

     1,229       165,128  

Juniper Networks, Inc.

     6,472       195,131  

Motorola Solutions, Inc.

     3,355       977,647  
   

 

 

  
      6,158,696  
Construction & Engineering — 0.1%            

AECOM

     2,819       234,118  
Security   Shares     Value  
Construction & Engineering (continued)  

Quanta Services, Inc.

     2,842     $ 482,117  

WillScot Mobile Mini Holdings Corp.(a)

     4,240       192,496  
   

 

 

  
      908,731  
Construction Materials — 0.1%            

Martin Marietta Materials, Inc.

     1,235       448,552  

Vulcan Materials Co.

     2,687       470,547  
   

 

 

  
      919,099  
Consumer Finance — 0.5%            

Ally Financial, Inc.

     6,154       162,343  

American Express Co.

     11,932       1,925,109  

Capital One Financial Corp.

     7,651       744,442  

Discover Financial Services

     5,351       553,668  

Synchrony Financial

     8,789       259,363  
   

 

 

  
      3,644,925  
Consumer Staples Distribution & Retail — 1.9%  

Albertsons Cos., Inc., Class A

     3,182       66,504  

BJ’s Wholesale Club Holdings, Inc.(a)

     2,673       204,137  

Casey’s General Stores, Inc.

     743       170,013  

Costco Wholesale Corp.

     8,894       4,475,639  

Dollar General Corp.

     4,496       995,684  

Dollar Tree, Inc.(a)

     4,155       638,665  

Kroger Co.

     13,131       638,560  

Performance Food Group Co.(a)

     3,192       200,106  

Sysco Corp.

     10,209       783,439  

Target Corp.

     9,213       1,453,351  

U.S. Foods Holding Corp.(a)

     4,065       156,096  

Walgreens Boots Alliance, Inc.

     14,279       503,335  

Walmart, Inc.

     28,107       4,243,314  
   

 

 

  
          14,528,843  
Containers & Packaging — 0.3%            

Amcor PLC

     30,227       331,590  

AptarGroup, Inc.

     1,297       153,708  

Avery Dennison Corp.

     1,638       285,798  

Ball Corp.

     6,359       338,172  

Crown Holdings, Inc.

     2,405       206,301  

International Paper Co.

     7,137       236,306  

Packaging Corp. of America

     1,831       247,661  

Sealed Air Corp.

     2,824       135,524  

Westrock Co.

     5,109       152,912  
   

 

 

  
      2,087,972  
Distributors — 0.1%            

Genuine Parts Co.

     2,818       474,298  

LKQ Corp.

     5,143       296,905  

Pool Corp.

     783       275,084  
   

 

 

  
      1,046,287  
Diversified Consumer Services — 0.0%            

ADT, Inc.

     4,289       28,736  

Service Corp. International

     3,141       220,467  
   

 

 

  
      249,203  
Diversified REITs — 0.0%            

WP Carey, Inc.

     4,236       314,311  
   

 

 

  
Diversified Telecommunication Services — 0.8%  

AT&T Inc.

     142,867       2,524,460  

Lumen Technologies, Inc.

     18,688       44,290  

Verizon Communications, Inc.

     84,179       3,268,671  
   

 

 

  
      5,837,421  
Electric Utilities — 1.8%            

Alliant Energy Corp.

     5,097       281,049  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   39

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electric Utilities (continued)  

American Electric Power Co., Inc.

     10,290     $ 951,002  

Avangrid, Inc.

     1,377       55,438  

Constellation Energy Corp.

     6,597       510,608  

Duke Energy Corp.

     15,413       1,524,037  

Edison International

     7,681       565,322  

Entergy Corp.

     4,095       440,540  

Evergy, Inc.

     4,652       288,936  

Eversource Energy

     7,018       544,667  

Exelon Corp.

     19,987       848,248  

FirstEnergy Corp.

     10,820       430,636  

NextEra Energy, Inc.

     39,828       3,052,020  

NRG Energy, Inc.

     4,694       160,394  

OGE Energy Corp.

     3,964       148,809  

PG&E Corp.(a)

     32,077       548,837  

Pinnacle West Capital Corp.

     2,225       174,573  

PPL Corp.

     14,685       421,753  

Southern Co.

     21,787       1,602,434  

Xcel Energy, Inc.

     10,956       765,934  
   

 

 

  
          13,315,237  
Electrical Equipment — 0.6%            

AMETEK, Inc.

     4,596       633,926  

Eaton Corp. PLC

     7,965       1,331,111  

Emerson Electric Co.

     11,405       949,580  

Generac Holdings, Inc.(a)(b)

     1,260       128,797  

Hubbell, Inc.

     1,085       292,212  

Plug Power, Inc.(a)(b)

     10,624       95,935  

Regal Rexnord Corp.

     1,327       172,722  

Rockwell Automation, Inc.

     2,304       652,977  
   

 

 

  
      4,257,260  
Electronic Equipment, Instruments & Components — 0.7%  

Amphenol Corp., Class A

     11,958       902,470  

Arrow Electronics, Inc.(a)

     1,173       134,226  

CDW Corp.

     2,702       458,232  

Cognex Corp.

     3,422       163,195  

Corning, Inc.

     15,263       507,037  

Flex Ltd.(a)

     9,039       185,932  

Jabil, Inc.

     2,644       206,629  

Keysight Technologies, Inc.(a)

     3,564       515,497  

TD SYNNEX Corp.

     820       73,013  

TE Connectivity Ltd.

     6,377       780,354  

Teledyne Technologies, Inc.(a)

     931       385,806  

Trimble, Inc.(a)

     4,885       230,084  

Zebra Technologies Corp., Class A(a)

     1,035       298,111  
   

 

 

  
      4,840,586  
Energy Equipment & Services — 0.4%            

Baker Hughes Co., Class A

     20,160       589,479  

Halliburton Co.

     18,047       591,039  

NOV, Inc.

     7,843       131,370  

Schlumberger NV

     28,414       1,402,231  
   

 

 

  
      2,714,119  
Entertainment — 1.3%            

Activision Blizzard, Inc.

     14,291       1,110,554  

Electronic Arts, Inc.

     5,202       662,111  

Liberty Media Corp. - Liberty Formula One, Class A(a)

     511       33,103  

Liberty Media Corp. - Liberty Formula One, Class C, NVS(a)

     4,137       298,650  

Live Nation Entertainment, Inc.(a)

     2,828       191,682  

Netflix, Inc.(a)

     8,926       2,944,955  

ROBLOX Corp., Class A(a)

     7,239       257,708  

Roku, Inc., Class A(a)(b)

     2,497       140,356  
Security   Shares     Value  
Entertainment (continued)  

Take-Two Interactive Software, Inc.(a)

     3,159     $ 392,632  

Walt Disney Co.(a)

     36,615       3,753,037  
   

 

 

  
      9,784,788  
Financial Services — 4.4%            

Apollo Global Management, Inc.

     8,750       554,662  

Berkshire Hathaway, Inc., Class B(a)

     36,112       11,864,598  

Block, Inc., Class A(a)

     10,740       652,885  

Equitable Holdings, Inc.

     7,008       182,138  

Fidelity National Information Services, Inc.

     11,893       698,357  

Fiserv, Inc.(a)

     12,707       1,551,779  

FleetCor Technologies, Inc.(a)

     1,491       318,955  

Global Payments, Inc.

     5,291       596,349  

Jack Henry & Associates, Inc.

     1,441       235,373  

Mastercard, Inc., Class A

     16,910       6,426,307  

PayPal Holdings, Inc.(a)

     22,660       1,722,160  

Toast, Inc., Class A(a)(b)

     6,170       112,294  

Visa, Inc., Class A

     32,569       7,579,783  

WEX, Inc.(a)

     872       154,649  
   

 

 

  
          32,650,289  
Food Products — 1.1%            

Archer-Daniels-Midland Co.

     11,003       859,114  

Bunge Ltd.

     3,010       281,736  

Campbell Soup Co.

     4,052       220,024  

Conagra Brands, Inc.

     9,629       365,517  

Darling Ingredients, Inc.(a)

     3,176       189,194  

General Mills, Inc.

     11,818       1,047,429  

Hershey Co.

     2,930       800,066  

Hormel Foods Corp.

     5,767       233,218  

J M Smucker Co.

     2,124       327,967  

Kellogg Co.

     5,181       361,478  

Kraft Heinz Co.

     15,861       622,861  

Lamb Weston Holdings, Inc.

     2,886       322,684  

McCormick & Co., Inc., NVS

     5,068       445,224  

Mondelez International, Inc., Class A

     27,344       2,097,832  

Tyson Foods, Inc., Class A

     5,778       361,067  
   

 

 

  
      8,535,411  
Gas Utilities — 0.1%            

Atmos Energy Corp.

     2,879       328,609  

UGI Corp.

     4,151       140,636  
   

 

 

  
      469,245  
Ground Transportation — 0.9%            

Avis Budget Group, Inc.(a)

     500       88,335  

CSX Corp.

     42,138       1,291,108  

Hertz Global Holdings, Inc.(a)

     3,145       52,459  

JB Hunt Transport Services, Inc.

     1,670       292,734  

Knight-Swift Transportation Holdings, Inc.

     3,260       183,603  

Norfolk Southern Corp.

     4,582       930,283  

Old Dominion Freight Line, Inc.

     1,812       580,547  

Uber Technologies, Inc.(a)

     39,932       1,239,889  

U-Haul Holding Co.

     197       12,029  

Union Pacific Corp.

     12,264       2,400,065  
   

 

 

  
      7,071,052  
Health Care Equipment & Supplies — 2.9%            

Abbott Laboratories

     34,947       3,860,595  

Align Technology, Inc.(a)

     1,461       475,263  

Baxter International, Inc.

     10,107       481,902  

Becton Dickinson & Co.

     5,709       1,508,946  

Boston Scientific Corp.(a)

     28,744       1,498,137  

Cooper Cos., Inc.

     982       374,584  

DENTSPLY SIRONA, Inc.

     4,244       177,951  
 

 

 

40  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Dexcom, Inc.(a)

     7,767     $ 942,448  

Edwards Lifesciences Corp.(a)

     12,409       1,091,744  

GE HealthCare Technologies, Inc.(a)

     7,302       593,945  

Hologic, Inc.(a)

     4,959       426,524  

IDEXX Laboratories, Inc.(a)

     1,666       819,938  

Insulet Corp.(a)

     1,389       441,757  

Intuitive Surgical, Inc.(a)

     7,017       2,113,661  

Medtronic PLC

     26,661       2,424,818  

Novocure Ltd.(a)(b)

     1,801       118,686  

ResMed, Inc.

     2,930       706,013  

Shockwave Medical, Inc.(a)

     720       208,915  

STERIS PLC

     1,993       375,780  

Stryker Corp.

     6,754       2,023,836  

Teleflex, Inc.

     943       256,986  

Zimmer Biomet Holdings, Inc.

     4,207       582,417  
   

 

 

  
          21,504,846  
Health Care Providers & Services — 3.0%            

Acadia Healthcare Co., Inc.(a)

     1,816       131,279  

agilon health, Inc.(a)(b)

     3,930       95,381  

AmerisourceBergen Corp.

     3,236       539,927  

Cardinal Health, Inc.

     5,181       425,360  

Centene Corp.(a)

     11,077       763,538  

Chemed Corp.

     294       162,068  

Cigna Group

     5,980       1,514,674  

CVS Health Corp.

     25,730       1,886,266  

DaVita, Inc.(a)

     1,113       100,571  

Elevance Health, Inc.

     4,793       2,246,239  

HCA Healthcare, Inc.

     4,250       1,221,153  

Henry Schein, Inc.(a)

     2,751       222,308  

Humana, Inc.

     2,498       1,325,164  

Laboratory Corp. of America Holdings

     1,791       406,038  

McKesson Corp.

     2,733       995,468  

Molina Healthcare, Inc.(a)

     1,172       349,127  

Quest Diagnostics, Inc.

     2,231       309,685  

R1 RCM, Inc.(a)

     2,748       42,841  

UnitedHealth Group, Inc.

     18,727       9,215,369  

Universal Health Services, Inc., Class B

     1,272       191,245  
   

 

 

  
      22,143,701  
Health Care REITs — 0.2%            

Healthpeak Properties, Inc.

     11,108       244,043  

Medical Properties Trust, Inc.

     12,016       105,380  

Omega Healthcare Investors, Inc.

     4,675       125,103  

Ventas, Inc.

     8,007       384,736  

Welltower, Inc.

     9,431       747,124  
   

 

 

  
      1,606,386  
Health Care Technology — 0.1%            

Veeva Systems, Inc., Class A(a)

     2,804       502,140  
   

 

 

  
Hotel & Resort REITs — 0.0%            

Host Hotels & Resorts, Inc.

     14,444       233,559  
   

 

 

  
Hotels, Restaurants & Leisure — 2.3%            

Airbnb, Inc., Class A(a)

     7,962       952,813  

Aramark

     5,285       183,389  

Booking Holdings, Inc.(a)

     777       2,087,263  

Caesars Entertainment, Inc.(a)

     4,360       197,464  

Carnival Corp.(a)(b)

     20,097       185,093  

Chipotle Mexican Grill, Inc.(a)

     552       1,141,326  

Choice Hotels International, Inc.

     581       74,089  

Churchill Downs, Inc.

     667       195,118  

Darden Restaurants, Inc.

     2,434       369,798  

Domino’s Pizza, Inc.

     716       227,309  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)  

DoorDash, Inc., Class A(a)

     5,326     $ 325,898  

Expedia Group, Inc.(a)

     2,944       276,618  

Hilton Worldwide Holdings, Inc.

     5,360       771,947  

Las Vegas Sands Corp.(a)

     6,547       418,026  

Marriott International, Inc., Class A

     5,368       909,017  

McDonald’s Corp.

     14,680       4,341,610  

MGM Resorts International

     6,328       284,254  

Norwegian Cruise Line Holdings Ltd.(a)(b)

     8,202       109,497  

Royal Caribbean Cruises Ltd.(a)

     4,373       286,125  

Starbucks Corp.

     23,035       2,632,670  

Vail Resorts, Inc.

     823       197,948  

Wyndham Hotels & Resorts, Inc.

     1,822       124,297  

Wynn Resorts Ltd.(a)

     2,097       239,645  

Yum! Brands, Inc.

     5,628       791,184  
   

 

 

  
      17,322,398  
Household Durables — 0.3%            

DR Horton, Inc.

     6,264       687,912  

Garmin Ltd.

     3,064       300,793  

Lennar Corp., Class A

     5,055       570,255  

Lennar Corp., Class B

     315       30,813  

NVR, Inc.(a)

     61       356,240  

PulteGroup, Inc.

     4,532       304,324  

Whirlpool Corp.

     1,065       148,663  
   

 

 

  
      2,399,000  
Household Products — 1.4%            

Church & Dwight Co., Inc.

     4,914       477,248  

Clorox Co.

     2,459       407,260  

Colgate-Palmolive Co.

     16,718       1,334,096  

Kimberly-Clark Corp.

     6,788       983,513  

Procter & Gamble Co.

     47,285       7,394,428  
   

 

 

  
          10,596,545  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp.

     13,359       316,074  

Vistra Corp.

     7,496       178,855  
   

 

 

  
      494,929  
Industrial Conglomerates — 0.8%            

3M Co.

     11,024       1,170,969  

General Electric Co.

     21,832       2,160,713  

Honeywell International, Inc.

     13,392       2,676,258  
   

 

 

  
      6,007,940  
Industrial REITs — 0.4%        

Americold Realty Trust, Inc.

     5,325       157,567  

EastGroup Properties, Inc.

     874       145,573  

Prologis, Inc.

     18,501       2,317,250  

Rexford Industrial Realty, Inc.

     3,802       212,038  
   

 

 

  
      2,832,428  
Insurance — 2.3%        

Aflac, Inc.

     11,260       786,511  

Allstate Corp.

     5,290       612,370  

American Financial Group, Inc.

     1,426       175,013  

American International Group, Inc.

     14,943       792,577  

Aon PLC, Class A

     4,107       1,335,514  

Arch Capital Group Ltd.(a)

     7,360       552,515  

Arthur J. Gallagher & Co.

     4,266       887,584  

Assurant, Inc.

     1,064       131,010  

Brown & Brown, Inc.

     4,771       307,205  

Chubb Ltd.

     8,329       1,678,793  

Cincinnati Financial Corp.

     3,174       337,841  

CNA Financial Corp.

     538       20,934  

Erie Indemnity Co., Class A, NVS

     492       106,926  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   41

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)  

Everest Re Group Ltd.

     776     $ 293,328  

Fidelity National Financial, Inc., Class A

     5,572       197,750  

Globe Life, Inc.

     1,778       192,949  

Hartford Financial Services Group, Inc.

     6,309       447,876  

Kinsale Capital Group, Inc.

     428       139,832  

Lincoln National Corp.

     3,084       67,015  

Loews Corp.

     3,858       222,105  

Markel Corp.(a)

     270       369,503  

Marsh & McLennan Cos., Inc.

     9,908       1,785,323  

MetLife, Inc.

     13,210       810,169  

Old Republic International Corp.

     5,577       140,931  

Principal Financial Group, Inc.

     4,561       340,661  

Progressive Corp.

     11,741       1,601,472  

Prudential Financial, Inc.

     7,379       641,973  

Reinsurance Group of America, Inc.

     1,306       185,870  

Travelers Cos., Inc.

     4,647       841,758  

Unum Group

     3,736       157,659  

W. R. Berkley Corp.

     4,064       239,451  

Willis Towers Watson PLC

     2,141       495,856  
   

 

 

  
          16,896,274  
Interactive Media & Services — 4.8%        

Alphabet, Inc., Class A(a)

     119,376       12,813,820  

Alphabet, Inc., Class C, NVS(a)

     104,066       11,262,022  

Match Group, Inc.(a)

     5,644       208,264  

Meta Platforms, Inc., Class A(a)

     44,611       10,720,915  

Pinterest, Inc., Class A(a)

     11,809       271,607  

Snap, Inc., Class A, NVS(a)

     19,753       172,049  

ZoomInfo Technologies, Inc., Class A(a)

     5,380       117,876  
   

 

 

  
      35,566,553  
IT Services — 1.4%        

Accenture PLC, Class A

     12,622       3,537,820  

Akamai Technologies, Inc.(a)

     3,193       261,730  

Cloudflare, Inc., Class A(a)(b)

     5,744       270,255  

Cognizant Technology Solutions Corp., Class A

     10,202       609,161  

DXC Technology Co.(a)

     4,509       107,540  

EPAM Systems, Inc.(a)

     1,162       328,195  

Gartner, Inc.(a)

     1,576       476,677  

GoDaddy, Inc., Class A(a)

     3,114       235,668  

International Business Machines Corp.

     18,145       2,293,709  

MongoDB, Inc., Class A(a)

     1,382       331,625  

Okta, Inc., Class A(a)

     3,097       212,237  

Snowflake, Inc., Class A(a)(b)

     5,756       852,349  

Twilio, Inc., Class A(a)

     3,537       186,082  

VeriSign, Inc.(a)

     1,824       404,563  
   

 

 

  
      10,107,611  
Leisure Products — 0.0%        

Hasbro, Inc.

     2,534       150,063  

Mattel, Inc.(a)

     7,294       131,292  
   

 

 

  
      281,355  
Life Sciences Tools & Services — 1.7%        

Agilent Technologies, Inc.

     5,945       805,131  

Avantor, Inc.(a)

     13,435       261,714  

Bio-Rad Laboratories, Inc., Class A(a)

     435       196,094  

Bio-Techne Corp.

     3,197       255,376  

Bruker Corp.

     2,011       159,130  

Charles River Laboratories International, Inc.(a)

     1,008       191,641  

Danaher Corp.

     13,138       3,112,524  

Illumina, Inc.(a)

     3,138       645,047  

IQVIA Holdings, Inc.(a)

     3,719       700,027  

Mettler-Toledo International, Inc.(a)

     441       657,752  

PerkinElmer, Inc.

     2,514       328,052  
Security   Shares     Value  
Life Sciences Tools & Services (continued)  

Repligen Corp.(a)

     1,024     $ 155,269  

Thermo Fisher Scientific, Inc.

     7,861       4,362,069  

Waters Corp.(a)(b)

     1,202       361,033  

West Pharmaceutical Services, Inc.

     1,489       537,886  
   

 

 

  
      12,728,745  
Machinery — 1.8%        

AGCO Corp.

     1,253       155,297  

Caterpillar, Inc.

     10,430       2,282,084  

Chart Industries, Inc.(a)(b)

     836       111,272  

Cummins, Inc.

     2,841       667,749  

Deere & Co.

     5,419       2,048,490  

Dover Corp.

     2,809       410,563  

Fortive Corp.

     7,042       444,280  

Graco, Inc.

     3,357       266,176  

IDEX Corp.

     1,515       312,575  

Illinois Tool Works, Inc.

     5,560       1,345,186  

Ingersoll Rand, Inc.

     8,090       461,292  

Lincoln Electric Holdings, Inc.

     1,172       196,662  

Middleby Corp.(a)

     1,096       154,404  

Nordson Corp.

     1,081       233,831  

Otis Worldwide Corp.

     8,287       706,881  

PACCAR, Inc.

     10,469       781,930  

Parker-Hannifin Corp.

     2,576       836,891  

Pentair PLC

     3,332       193,523  

RBC Bearings, Inc.(a)(b)

     581       131,893  

Snap-on, Inc.

     1,074       278,606  

Stanley Black & Decker, Inc.

     2,993       258,416  

Toro Co.

     2,096       218,529  

Westinghouse Air Brake Technologies Corp.

     3,611       352,686  

Xylem, Inc.

     3,616       375,485  
   

 

 

  
          13,224,701  
Media — 0.9%        

Charter Communications, Inc., Class A(a)

     2,119       781,275  

Comcast Corp., Class A

     84,313       3,488,029  

Fox Corp., Class A, NVS

     5,991       199,261  

Fox Corp., Class B

     2,808       85,756  

Interpublic Group of Cos., Inc.

     7,774       277,765  

Liberty Broadband Corp., Class A(a)

     344       29,078  

Liberty Broadband Corp., Class C, NVS(a)

     2,384       202,116  

Liberty Media Corp. - Liberty SiriusXM, Class A(a)

     1,456       40,914  

Liberty Media Corp. - Liberty SiriusXM, Class C, NVS(a)

     3,121       87,201  

News Corp., Class A, NVS

     7,784       137,076  

News Corp., Class B

     2,439       43,292  

Omnicom Group, Inc.

     4,023       364,363  

Paramount Global, Class B, NVS

     10,068       234,886  

Sirius XM Holdings, Inc.(b)

     13,972       53,094  

Trade Desk, Inc., Class A(a)

     8,872       570,824  
   

 

 

  
      6,594,930  
Metals & Mining — 0.5%        

Alcoa Corp.

     3,537       131,364  

Cleveland-Cliffs, Inc.(a)

     10,313       158,614  

Freeport-McMoRan, Inc.

     28,557       1,082,596  

Newmont Corp.

     15,929       755,035  

Nucor Corp.

     5,089       754,088  

Reliance Steel & Aluminum Co.

     1,168       289,430  

Southern Copper Corp.

     1,703       130,842  

Steel Dynamics, Inc.

     3,354       348,648  
   

 

 

  
      3,650,617  
Mortgage Real Estate Investment Trusts (REITs) — 0.0%  

Annaly Capital Management, Inc.

     9,340       186,613  
   

 

 

  
 

 

 

42  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Multi-Utilities — 0.8%  

Ameren Corp.

     5,148     $ 458,018  

CenterPoint Energy, Inc.

     12,535       381,941  

CMS Energy Corp.

     5,863       365,030  

Consolidated Edison, Inc.

     7,106       699,728  

Dominion Energy, Inc.

     16,682       953,209  

DTE Energy Co.

     3,849       432,666  

NiSource, Inc.

     8,276       235,535  

Public Service Enterprise Group, Inc.

     10,043       634,718  

Sempra Energy

     6,294       978,654  

WEC Energy Group, Inc.

     6,346       610,295  
   

 

 

  
      5,749,794  
Office REITs — 0.1%        

Alexandria Real Estate Equities, Inc.

     3,168       393,402  

Boston Properties, Inc.

     2,849       152,023  
   

 

 

  
      545,425  
Oil, Gas & Consumable Fuels — 4.3%        

Antero Resources Corp.(a)

     5,609       128,951  

APA Corp.

     6,504       239,672  

Cheniere Energy, Inc.

     4,974       761,022  

Chesapeake Energy Corp.

     2,147       177,514  

Chevron Corp.

     35,655       6,010,720  

ConocoPhillips

     24,529       2,523,789  

Coterra Energy, Inc.

     15,851       405,786  

Devon Energy Corp.

     13,054       697,475  

Diamondback Energy, Inc.

     3,696       525,571  

EOG Resources, Inc.

     11,763       1,405,326  

EQT Corp.

     7,374       256,910  

Exxon Mobil Corp.

     82,537       9,767,429  

Hess Corp.

     5,569       807,839  

HF Sinclair Corp.

     2,687       118,523  

Kinder Morgan, Inc.

     39,498       677,391  

Marathon Oil Corp.

     12,772       308,571  

Marathon Petroleum Corp.

     9,130       1,113,860  

Matador Resources Co.

     2,238       109,729  

Murphy Oil Corp.

     2,919       107,156  

New Fortress Energy, Inc., Class A

     968       29,321  

Occidental Petroleum Corp.

     14,624       899,815  

ONEOK, Inc.

     8,990       588,036  

Ovintiv, Inc.

     4,907       177,044  

Phillips 66

     9,297       920,403  

Pioneer Natural Resources Co.

     4,769       1,037,496  

Range Resources Corp.

     4,828       127,701  

Southwestern Energy Co.(a)

     22,093       114,663  

Targa Resources Corp.

     4,498       339,734  

Texas Pacific Land Corp.

     124       183,229  

Valero Energy Corp.

     7,729       886,284  

Williams Cos., Inc.

     24,445       739,706  
   

 

 

  
          32,186,666  
Passenger Airlines — 0.2%        

American Airlines Group, Inc.(a)

     13,138       179,202  

Delta Air Lines, Inc.(a)

     12,794       438,962  

Southwest Airlines Co.

     11,806       357,604  

United Airlines Holdings, Inc.(a)

     6,503       284,832  
   

 

 

  
      1,260,600  
Personal Care Products — 0.2%        

Estee Lauder Cos., Inc., Class A

     4,659       1,149,468  
   

 

 

  
Pharmaceuticals — 4.1%            

Bristol-Myers Squibb Co.

     42,614       2,845,337  

Catalent, Inc.(a)

     3,635       182,186  

Eli Lilly & Co.

     15,807       6,257,359  
Security   Shares     Value  
Pharmaceuticals (continued)  

Jazz Pharmaceuticals PLC(a)

     1,247     $ 175,166  

Johnson & Johnson

     52,402       8,578,207  

Merck & Co., Inc.

     50,816       5,867,724  

Organon & Co.

     4,958       122,116  

Pfizer, Inc.

     112,508       4,375,436  

Royalty Pharma PLC, Class A

     7,514       264,117  

Viatris, Inc.

     24,141       225,236  

Zoetis, Inc., Class A

     9,353       1,644,070  
   

 

 

  
          30,536,954  
Professional Services — 0.9%        

Automatic Data Processing, Inc.

     8,304       1,826,880  

Booz Allen Hamilton Holding Corp., Class A

     2,662       254,807  

Broadridge Financial Solutions, Inc.

     2,366       344,040  

Ceridian HCM Holding, Inc.(a)(b)

     3,045       193,297  

Clarivate PLC(a)(b)

     8,586       76,072  

Concentrix Corp.

     865       83,481  

CoStar Group, Inc.(a)

     8,121       624,911  

Equifax, Inc.

     2,472       515,115  

Genpact Ltd.

     3,318       147,817  

Jacobs Solutions, Inc.

     2,523       291,305  

Leidos Holdings, Inc.

     2,775       258,796  

Paychex, Inc.

     6,436       707,059  

Paycom Software, Inc.(a)

     957       277,884  

Paylocity Holding Corp.(a)

     844       163,137  

Robert Half International, Inc.

     2,157       157,461  

SS&C Technologies Holdings, Inc.

     4,350       254,649  

TransUnion

     3,849       264,850  

Verisk Analytics, Inc.

     3,144       610,282  
   

 

 

  
      7,051,843  
Real Estate Management & Development — 0.1%        

CBRE Group, Inc., Class A(a)

     6,372       488,477  

Jones Lang LaSalle, Inc.(a)

     969       134,730  

Zillow Group, Inc., Class A(a)

     1,179       50,438  

Zillow Group, Inc., Class C, NVS(a)(b)

     3,312       144,204  
   

 

 

  
      817,849  
Residential REITs — 0.4%        

American Homes 4 Rent, Class A

     6,263       208,308  

AvalonBay Communities, Inc.

     2,822       509,004  

Camden Property Trust

     2,216       243,871  

Equity LifeStyle Properties, Inc.

     3,482       239,910  

Equity Residential

     6,861       433,958  

Essex Property Trust, Inc.

     1,288       283,012  

Invitation Homes, Inc.

     11,555       385,590  

Mid-America Apartment Communities, Inc.

     2,311       355,432  

Sun Communities, Inc.

     2,459       341,629  

UDR, Inc.

     6,207       256,535  
   

 

 

  
      3,257,249  
Retail REITs — 0.3%        

Brixmor Property Group, Inc.

     5,921       126,295  

Federal Realty Investment Trust

     1,468       145,171  

Kimco Realty Corp.

     12,549       240,815  

National Retail Properties, Inc.

     3,605       156,817  

Realty Income Corp.

     12,524       787,008  

Regency Centers Corp.

     3,111       191,109  

Simon Property Group, Inc.

     6,578       745,419  
   

 

 

  
      2,392,634  
Semiconductors & Semiconductor Equipment — 5.8%        

Advanced Micro Devices, Inc.(a)

     32,316       2,888,081  

Analog Devices, Inc.

     10,155       1,826,681  

Applied Materials, Inc.

     16,895       1,909,642  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   43

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Broadcom, Inc.

     8,376     $ 5,247,564  

Enphase Energy, Inc.(a)

     2,736       449,251  

Entegris, Inc.

     2,947       220,789  

First Solar, Inc.(a)

     1,989       363,152  

Intel Corp.

     82,918       2,575,433  

KLA Corp.

     2,784       1,076,127  

Lam Research Corp.

     2,700       1,415,016  

Marvell Technology, Inc.

     17,047       673,016  

Microchip Technology, Inc.

     10,953       799,459  

Micron Technology, Inc.

     21,846       1,406,009  

Monolithic Power Systems, Inc.

     891       411,615  

NVIDIA Corp.

     49,306       13,681,922  

NXP Semiconductors NV

     5,199       851,284  

ON Semiconductor Corp.(a)

     8,688       625,188  

Qorvo, Inc.(a)

     1,982       182,503  

QUALCOMM, Inc.

     22,348       2,610,246  

Skyworks Solutions, Inc.

     3,195       338,351  

SolarEdge Technologies, Inc.(a)

     1,121       320,191  

Teradyne, Inc.

     3,107       283,918  

Texas Instruments, Inc.

     18,163       3,036,854  

Wolfspeed, Inc.(a)

     2,536       118,051  
   

 

 

  
          43,310,343  
Software — 9.8%        

Adobe, Inc.(a)

     9,176       3,464,491  

ANSYS, Inc.(a)

     1,751       549,674  

Aspen Technology, Inc.(a)

     579       102,483  

Atlassian Corp., Class A(a)

     3,018       445,638  

Autodesk, Inc.(a)

     4,323       842,077  

Bentley Systems, Inc., Class B

     4,008       170,581  

BILL Holdings, Inc.(a)(b)

     1,872       143,788  

Black Knight, Inc.(a)

     3,119       170,422  

Cadence Design Systems, Inc.(a)

     5,492       1,150,299  

Crowdstrike Holdings, Inc., Class A(a)

     4,390       527,020  

Datadog, Inc., Class A(a)

     5,028       338,787  

DocuSign, Inc.(a)

     4,003       197,908  

Dynatrace, Inc.(a)

     4,323       182,776  

Fair Isaac Corp.(a)

     499       363,247  

Fortinet, Inc.(a)

     13,038       822,046  

Gen Digital, Inc.

     11,618       205,290  

HubSpot, Inc.(a)

     977       411,268  

Intuit, Inc.

     5,631       2,499,883  

Manhattan Associates, Inc.(a)

     1,242       205,775  

Microsoft Corp.

     149,197       45,842,270  

Oracle Corp.

     30,803       2,917,660  

Palantir Technologies, Inc., Class A(a)

     35,696       276,644  

Palo Alto Networks, Inc.(a)

     6,081       1,109,539  

Procore Technologies, Inc.(a)

     1,380       73,706  

PTC, Inc.(a)

     2,117       266,297  

Roper Technologies, Inc.

     2,124       965,953  

Salesforce, Inc.(a)

     20,043       3,975,930  

ServiceNow, Inc.(a)

     4,065       1,867,542  

Splunk, Inc.(a)

     3,022       260,617  

Synopsys, Inc.(a)

     3,048       1,131,783  

Tyler Technologies, Inc.(a)

     846       320,659  

Unity Software, Inc.(a)(b)

     4,866       131,236  

VMware, Inc., Class A(a)

     4,170       521,375  

Workday, Inc., Class A(a)

     4,025       749,214  

Zoom Video Communications, Inc., Class A(a)

     4,289       263,473  

Zscaler, Inc.(a)

     1,737       156,504  
   

 

 

  
      73,623,855  
Specialized REITs — 1.2%        

American Tower Corp.

     9,327       1,906,346  
Security   Shares     Value  
Specialized REITs (continued)  

Crown Castle, Inc.

     8,691     $ 1,069,775  

CubeSmart

     4,543       206,661  

Digital Realty Trust, Inc.

     5,722       567,336  

Equinix, Inc.

     1,859       1,346,065  

Extra Space Storage, Inc.

     2,678       407,163  

Gaming & Leisure Properties, Inc.

     5,229       271,908  

Iron Mountain, Inc.

     5,874       324,480  

Lamar Advertising Co., Class A

     1,771       187,159  

Life Storage, Inc.

     1,730       232,477  

Public Storage

     3,154       929,894  

SBA Communications Corp.

     2,150       560,913  

VICI Properties, Inc.

     20,186       685,113  

Weyerhaeuser Co.

     14,725       440,425  
   

 

 

  
      9,135,715  
Specialty Retail — 2.2%        

Advance Auto Parts, Inc.

     1,162       145,866  

AutoZone, Inc.(a)

     378       1,006,731  

Bath & Body Works, Inc.

     4,530       159,003  

Best Buy Co., Inc.

     3,917       291,895  

Burlington Stores, Inc.(a)

     1,302       251,039  

CarMax, Inc.(a)(b)

     3,124       218,774  

Five Below, Inc.(a)

     1,126       222,227  

Floor & Decor Holdings, Inc., Class A(a)(b)

     2,158       214,376  

GameStop Corp., Class A(a)(b)

     5,111       98,591  

Home Depot, Inc.

     20,428       6,139,431  

Lowe’s Cos., Inc.

     12,121       2,519,107  

Murphy U.S.A., Inc.

     412       113,395  

O’Reilly Automotive, Inc.(a)

     1,245       1,142,051  

Penske Automotive Group, Inc.

     517       71,646  

Ross Stores, Inc.

     6,873       733,555  

TJX Cos., Inc.

     23,145       1,824,289  

Tractor Supply Co.

     2,226       530,678  

Ulta Beauty, Inc.(a)

     1,018       561,356  

Williams-Sonoma, Inc.

     1,314       159,047  
   

 

 

  
      16,403,057  
Technology Hardware, Storage & Peripherals — 7.0%        

Apple Inc.

     298,091       50,580,081  

Dell Technologies, Inc., Class C

     4,872       211,883  

Hewlett Packard Enterprise Co.

     25,703       368,067  

HP, Inc.

     17,383       516,449  

NetApp, Inc.

     4,353       273,760  

Pure Storage, Inc., Class A(a)

     5,556       126,843  

Seagate Technology Holdings PLC

     3,919       230,320  

Western Digital Corp.(a)

     6,365       219,211  
   

 

 

  
          52,526,614  
Textiles, Apparel & Luxury Goods — 0.6%        

Deckers Outdoor Corp.(a)

     521       249,736  

Lululemon Athletica, Inc.(a)

     2,328       884,477  

NIKE, Inc., Class B

     24,967       3,163,818  

Tapestry, Inc.

     4,748       193,766  

VF Corp.

     6,582       154,743  
   

 

 

  
      4,646,540  
Tobacco — 0.6%        

Altria Group, Inc.

     35,787       1,700,240  

Philip Morris International, Inc.

     31,071       3,106,168  
   

 

 

  
      4,806,408  
Trading Companies & Distributors — 0.3%        

Fastenal Co.

     11,415       614,583  

United Rentals, Inc.

     1,399       505,193  
 

 

 

44  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Trading Companies & Distributors (continued)  

Watsco, Inc.(b)

     678     $ 234,846  

WW Grainger, Inc.

     897       623,926  
   

 

 

  
      1,978,548  
Water Utilities — 0.1%        

American Water Works Co., Inc.

     3,863       572,690  

Essential Utilities, Inc.

     4,808       205,301  
   

 

 

  
      777,991  
Wireless Telecommunication Services — 0.2%        

T-Mobile U.S., Inc.(a)

     11,871       1,708,237  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $667,311,227)

 

     745,707,931  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 0.9%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.02%(c)(d)(e)

     5,528,959       5,530,618  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(c)(d)

     1,674,057       1,674,057  
   

 

 

  

Total Short-Term Securities — 0.9%
(Cost: $7,201,389)

 

     7,204,675  
   

 

 

  

Total Investments — 100.6%
(Cost: $674,512,616)

       752,912,606  

Liabilities in Excess of Other Assets — (0.6)%

 

     (4,767,219 ) 
   

 

 

  

Net Assets — 100.0%

     $   748,145,387  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

    

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/22		     Purchases
at Cost		     Proceeds
from Sale		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
04/30/23		     Shares
Held at
04/30/23		     Income     Capital
Gain
Distributions
from Underlying
Funds		  

BlackRock Cash Funds: Institutional, SL Agency Shares

   $   15,484,927     $ —     $   (9,957,584 )(a)    $ 2,633     $ 642     $ 5,530,618       5,528,959     $ 68,761 (b)    $ —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     1,733,000       —       (58,943 )(a)      —       —       1,674,057       1,674,057       43,673       1  

BlackRock, Inc.

     1,846,554         184,596       (162,644 )      54,937       91,499       2,014,942       3,002       44,723       —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $   57,570     $     92,141     $   9,219,617       $   157,157     $             1  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   45

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date		        Notional
Amount
(000)		        Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

S&P 500 E-Mini Index

      11          06/16/23        $ 2,304        $ 113,123  
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 113,123      $ —      $ —      $ —      $ 113,123  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		     Total  

Net Realized Gain (Loss) from

                    

Futures contracts

    $ —      $ —      $ (297,208)      $ —      $ —      $ —     $ (297,208)  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

    $ —      $ —      $ 231,868      $ —      $ —      $ —     $ 231,868  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

         

Average notional value of contracts — long

    $ 1,826,256  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

46  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar U.S. Equity ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 745,707,931        $ —        $ —        $ 745,707,931  

Short-Term Securities

                  

Money Market Funds

      7,204,675          —          —          7,204,675  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 752,912,606        $ —        $ —        $ 752,912,606  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Equity Contracts

    $ 113,123        $ —        $ —        $ 113,123  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   47

Schedule of Investments  

April 30, 2023

   

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks

     
Aerospace & Defense — 2.9%             

Boeing Co.(a)

     24,114      $ 4,986,293  

General Dynamics Corp.

     6,645        1,450,869  

L3Harris Technologies, Inc.

     8,183        1,596,912  

Lockheed Martin Corp.

     9,743        4,525,136  

Northrop Grumman Corp.

     6,169        2,845,575  

Raytheon Technologies Corp.

     62,820        6,275,718  

Textron, Inc.

     3,219        215,480  

TransDigm Group, Inc.

     895        684,675  
    

 

 

  
           22,580,658  
Air Freight & Logistics — 1.1%             

CH Robinson Worldwide, Inc.

     3,139        316,631  

Expeditors International of Washington, Inc.

     6,847        779,462  

FedEx Corp.

     9,968        2,270,511  

United Parcel Service, Inc., Class B

     31,296        5,627,334  
    

 

 

  
       8,993,938  
Automobile Components — 0.1%             

Aptiv PLC(a)

     4,702        483,648  

BorgWarner, Inc.

     6,684        321,701  

Lear Corp.

     1,420        181,277  
    

 

 

  
       986,626  
Automobiles — 0.5%             

Ford Motor Co.

     167,469        1,989,532  

General Motors Co.

     59,887        1,978,666  
    

 

 

  
       3,968,198  
Banks — 6.3%             

Bank of America Corp.

     299,294        8,763,328  

BOK Financial Corp.

     1,232        103,328  

Citigroup, Inc.

     83,056        3,909,446  

Citizens Financial Group, Inc.

     21,159        654,659  

Comerica, Inc.

     3,769        163,462  

Commerce Bancshares, Inc.

     3,345        186,818  

Cullen/Frost Bankers, Inc.

     1,723        189,961  

East West Bancorp, Inc.

     6,106        315,619  

Fifth Third Bancorp

     29,182        764,568  

First Citizens BancShares, Inc., Class A

     264        265,896  

First Horizon Corp.

     22,849        401,000  

Huntington Bancshares, Inc.

     61,973        694,098  

JPMorgan Chase & Co.

     125,781        17,387,965  

KeyCorp

     40,153        452,123  

M&T Bank Corp.

     7,241        910,918  

PNC Financial Services Group, Inc.

     17,213        2,241,993  

Regions Financial Corp.

     40,139        732,938  

Truist Financial Corp.

     56,834        1,851,652  

U.S. Bancorp

     59,592        2,042,814  

Webster Financial Corp.

     7,408        276,318  

Wells Fargo & Co.

     163,401        6,495,190  

Western Alliance Bancorp

     2,852        105,866  

Zions Bancorp N.A.

     6,374        177,580  
    

 

 

  
       49,087,540  
Beverages — 2.0%             

Coca-Cola Co.

     112,326        7,205,713  

Constellation Brands, Inc., Class A

     4,900        1,124,403  

Keurig Dr Pepper, Inc.

     24,735        808,835  

Molson Coors Beverage Co., Class B

     8,136        483,929  

PepsiCo, Inc.

     32,709        6,243,821  
    

 

 

  
       15,866,701  
Biotechnology — 3.6%             

AbbVie, Inc.

     75,836        11,460,336  
Security   Shares      Value  

Biotechnology (continued)

     

Amgen, Inc.

     22,898      $ 5,489,566  

Biogen, Inc.(a)

     6,158        1,873,448  

Gilead Sciences, Inc.

     53,474        4,396,098  

Horizon Therapeutics PLC(a)

     4,042        449,309  

Moderna, Inc.(a)

     14,166        1,882,520  

Regeneron Pharmaceuticals, Inc.(a)

     3,025        2,425,415  

United Therapeutics Corp.(a)

     1,309        301,240  
    

 

 

  
       28,277,932  
Broadline Retail — 2.8%             

Amazon.com, Inc.(a)

     188,287        19,854,864  

Coupang, Inc., Class A(a)

     44,042        738,144  

eBay, Inc.

     23,272        1,080,519  
    

 

 

  
           21,673,527  
Building Products — 0.7%             

A O Smith Corp.

     3,061        209,036  

Allegion PLC

     2,054        226,926  

Builders FirstSource, Inc.(a)

     3,805        360,600  

Carlisle Cos., Inc.

     744        160,592  

Carrier Global Corp.

     24,141        1,009,577  

Fortune Brands Innovations, Inc.

     5,470        353,854  

Johnson Controls International PLC

     20,343        1,217,325  

Lennox International, Inc.

     712        200,720  

Masco Corp.

     9,754        521,936  

Owens Corning

     2,706        289,028  

Trane Technologies PLC

     4,222        784,490  
    

 

 

  
       5,334,084  
Capital Markets — 4.0%             

Ameriprise Financial, Inc.

     2,692        821,383  

Bank of New York Mellon Corp.

     31,483        1,340,861  

BlackRock, Inc.(b)

     6,421        4,309,775  

Blackstone, Inc., Class A, NVS

     19,306        1,724,605  

Carlyle Group, Inc.

     9,288        281,705  

CME Group, Inc., Class A

     15,428        2,866,060  

Coinbase Global, Inc., Class A(a)(c)

     6,779        364,642  

Franklin Resources, Inc.

     12,389        333,016  

Goldman Sachs Group, Inc.

     14,521        4,987,092  

Intercontinental Exchange, Inc.

     23,977        2,611,815  

Invesco Ltd.

     19,369        331,791  

Jefferies Financial Group, Inc.

     7,803        249,930  

KKR & Co., Inc., Class A

     24,740        1,312,952  

Moody’s Corp.

     3,382        1,058,972  

Morgan Stanley

     56,025        5,040,569  

Nasdaq, Inc.

     7,676        425,020  

Northern Trust Corp.

     8,959        700,236  

SEI Investments Co.

     1,994        117,467  

State Street Corp.

     14,909        1,077,324  

T Rowe Price Group, Inc.

     9,585        1,076,683  
    

 

 

  
       31,031,898  
Chemicals — 2.2%             

Air Products & Chemicals, Inc.

     6,029        1,774,696  

Celanese Corp., Class A

     4,316        458,532  

CF Industries Holdings, Inc.

     8,459        605,495  

Corteva, Inc.

     17,525        1,071,128  

Dow, Inc.

     30,150        1,640,160  

DuPont de Nemours, Inc.

     19,592        1,365,954  

Eastman Chemical Co.

     5,111        430,704  

Ecolab, Inc.

     3,792        636,449  

FMC Corp.

     3,525        435,620  

International Flavors & Fragrances, Inc.

     10,943        1,061,033  

Linde PLC

     10,489        3,875,161  

LyondellBasell Industries NV, Class A

     7,015        663,689  
 

 

 

48  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Chemicals (continued)

     

Mosaic Co.

     14,500      $ 621,325  

Olin Corp.

     2,124        117,670  

PPG Industries, Inc.

     10,070        1,412,418  

RPM International, Inc.

     2,084        170,951  

Sherwin-Williams Co.

     3,814        905,978  

Westlake Corp.

     696        79,191  
    

 

 

  
           17,326,154  
Commercial Services & Supplies — 0.3%  

Cintas Corp.

     1,397        636,711  

Republic Services, Inc.

     3,651        528,007  

Waste Management, Inc.

     5,999        996,134  
    

 

 

  
       2,160,852  
Communications Equipment — 1.3%  

Cisco Systems, Inc.

     176,163        8,323,702  

F5, Inc.(a)

     1,462        196,434  

Juniper Networks, Inc.

     13,823        416,764  

Motorola Solutions, Inc.

     3,920        1,142,288  
    

 

 

  
       10,079,188  
Construction & Engineering — 0.1%  

AECOM

     3,104        257,787  

Quanta Services, Inc.

     2,455        416,466  
    

 

 

  
       674,253  
Consumer Finance — 0.9%             

Ally Financial, Inc.

     13,011        343,230  

American Express Co.

     25,530        4,119,010  

Capital One Financial Corp.

     16,334        1,589,298  

Discover Financial Services

     4,458        461,269  

Synchrony Financial

     18,691        551,572  
    

 

 

  
       7,064,379  
Consumer Staples Distribution & Retail — 2.3%  

Albertsons Cos., Inc., Class A

     6,838        142,914  

BJ’s Wholesale Club Holdings, Inc.(a)

     3,344        255,381  

Casey’s General Stores, Inc.

     638        145,987  

Dollar General Corp.

     4,355        964,458  

Kroger Co.

     27,915        1,357,507  

Sysco Corp.

     21,712        1,666,179  

Target Corp.

     19,739        3,113,827  

U.S. Foods Holding Corp.(a)

     4,333        166,387  

Walgreens Boots Alliance, Inc.

     30,778        1,084,925  

Walmart, Inc.

     60,135        9,078,581  
    

 

 

  
       17,976,146  
Containers & Packaging — 0.5%             

Amcor PLC

     63,409        695,597  

AptarGroup, Inc.

     1,483        175,750  

Avery Dennison Corp.

     1,653        288,415  

Ball Corp.

     13,520        718,994  

Crown Holdings, Inc.

     2,875        246,617  

International Paper Co.

     15,354        508,371  

Packaging Corp. of America

     3,996        540,499  

Sealed Air Corp.

     4,018        192,824  

Westrock Co.

     11,091        331,954  
    

 

 

  
       3,699,021  
Distributors — 0.1%             

Genuine Parts Co.

     3,443        579,491  

LKQ Corp.

     7,308        421,891  

Pool Corp.

     576        202,360  
    

 

 

  
       1,203,742  
Security   Shares      Value  

Diversified Consumer Services — 0.0%

     

ADT, Inc.

     9,142      $ 61,252  

Service Corp. International

     2,496        175,194  
    

 

 

  
       236,446  
Diversified REITs — 0.1%             

WP Carey, Inc.

     9,066        672,697  
    

 

 

  
Diversified Telecommunication Services — 1.6%  

AT&T Inc.

     305,662        5,401,048  

Lumen Technologies, Inc.

     40,533        96,063  

Verizon Communications, Inc.

     180,099        6,993,244  
    

 

 

  
           12,490,355  
Electric Utilities — 3.2%             

Alliant Energy Corp.

     10,839        597,662  

American Electric Power Co., Inc.

     22,048        2,037,676  

Avangrid, Inc.

     2,965        119,371  

Duke Energy Corp.

     33,019        3,264,919  

Edison International

     16,379        1,205,494  

Entergy Corp.

     8,741        940,357  

Evergy, Inc.

     9,904        615,137  

Eversource Energy

     14,931        1,158,795  

Exelon Corp.

     42,506        1,803,955  

FirstEnergy Corp.

     23,326        928,375  

NextEra Energy, Inc.

     56,951        4,364,155  

NRG Energy, Inc.

     4,359        148,947  

OGE Energy Corp.

     8,528        320,141  

PG&E Corp.(a)

     69,051        1,181,463  

Pinnacle West Capital Corp.

     4,915        385,631  

PPL Corp.

     31,633        908,500  

Southern Co.

     46,684        3,433,608  

Xcel Energy, Inc.

     23,408        1,636,453  
    

 

 

  
       25,050,639  
Electrical Equipment — 0.8%             

Eaton Corp. PLC

     17,009        2,842,544  

Emerson Electric Co.

     24,535        2,042,784  

Generac Holdings, Inc.(a)(c)

     1,372        140,246  

Regal Rexnord Corp.

     2,876        374,340  

Rockwell Automation, Inc.

     1,957        554,634  
    

 

 

  
       5,954,548  
Electronic Equipment, Instruments & Components — 0.4%  

Arrow Electronics, Inc.(a)

     2,494        285,388  

Corning, Inc.

     22,568        749,709  

Flex Ltd.(a)

     12,461        256,323  

Jabil, Inc.

     2,199        171,852  

TD SYNNEX Corp.

     1,793        159,649  

TE Connectivity Ltd.

     8,941        1,094,110  

Trimble, Inc.(a)

     4,392        206,863  

Zebra Technologies Corp., Class A(a)

     840        241,945  
    

 

 

  
       3,165,839  
Energy Equipment & Services — 0.3%             

Baker Hughes Co., Class A

     17,612        514,975  

Halliburton Co.

     19,161        627,523  

NOV, Inc.

     16,730        280,227  

Schlumberger NV

     22,138        1,092,510  
    

 

 

  
       2,515,235  
Entertainment — 0.9%             

Activision Blizzard, Inc.

     15,884        1,234,346  

Electronic Arts, Inc.

     4,619        587,906  

Liberty Media Corp. - Liberty Formula One, Class A(a)

     424        27,467  

Liberty Media Corp. - Liberty Formula One, Class C, NVS(a)

     3,795        273,961  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   49

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Entertainment (continued)

     

Netflix, Inc.(a)

     6,526      $ 2,153,123  

Walt Disney Co.(a)

     30,159        3,091,297  
    

 

 

  
       7,368,100  
Financial Services — 4.2%             

Apollo Global Management, Inc.

     7,685        487,152  

Berkshire Hathaway, Inc., Class B(a)

     77,261        25,384,102  

Equitable Holdings, Inc.

     14,904        387,355  

Fidelity National Information Services, Inc.

     25,518        1,498,417  

Fiserv, Inc.(a)

     12,487        1,524,912  

FleetCor Technologies, Inc.(a)

     1,603        342,914  

Global Payments, Inc.

     6,247        704,099  

PayPal Holdings, Inc.(a)

     28,996        2,203,696  

WEX, Inc.(a)

     766        135,850  
    

 

 

  
           32,668,497  
Food Products — 1.9%             

Archer-Daniels-Midland Co.

     23,487        1,833,865  

Bunge Ltd.

     6,465        605,124  

Campbell Soup Co.

     8,695        472,139  

Conagra Brands, Inc.

     20,385        773,815  

Darling Ingredients, Inc.(a)

     4,183        249,181  

General Mills, Inc.

     25,305        2,242,782  

Hormel Foods Corp.

     5,940        240,214  

J M Smucker Co.

     4,587        708,279  

Kellogg Co.

     11,013        768,377  

Kraft Heinz Co.

     34,104        1,339,264  

McCormick & Co., Inc., NVS

     6,297        553,191  

Mondelez International, Inc., Class A

     58,461        4,485,128  

Tyson Foods, Inc., Class A

     12,203        762,565  
    

 

 

  
       15,033,924  
Gas Utilities — 0.1%             

Atmos Energy Corp.

     3,808        434,645  

UGI Corp.

     8,916        302,074  
    

 

 

  
       736,719  
Ground Transportation — 1.2%             

Avis Budget Group, Inc.(a)(c)

     1,062        187,624  

CSX Corp.

     58,700        1,798,568  

Hertz Global Holdings, Inc.(a)(c)

     4,134        68,955  

Knight-Swift Transportation Holdings, Inc.

     4,230        238,234  

Norfolk Southern Corp.

     9,745        1,978,527  

Uber Technologies, Inc.(a)

     45,908        1,425,443  

U-Haul Holding Co.

     265        16,181  

Union Pacific Corp.

     18,000        3,522,600  
    

 

 

  
       9,236,132  
Health Care Equipment & Supplies — 2.8%  

Abbott Laboratories

     53,243        5,881,754  

Baxter International, Inc.

     21,628        1,031,223  

Becton Dickinson & Co.

     12,175        3,217,974  

Boston Scientific Corp.(a)

     33,564        1,749,356  

Cooper Cos., Inc.

     840        320,418  

DENTSPLY SIRONA, Inc.

     9,152        383,743  

Hologic, Inc.(a)

     4,628        398,054  

Medtronic PLC

     57,041        5,187,879  

Stryker Corp.

     7,510        2,250,372  

Teleflex, Inc.

     1,062        289,416  

Zimmer Biomet Holdings, Inc.

     8,999        1,245,822  
    

 

 

  
       21,956,011  
Health Care Providers & Services — 2.4%  

AmerisourceBergen Corp.

     6,943        1,158,440  

Cardinal Health, Inc.

     11,019        904,660  

Centene Corp.(a)

     15,711        1,082,959  
Security   Shares      Value  
Health Care Providers & Services (continued)  

Chemed Corp.

     334      $ 184,117  

Cigna Group

     8,596        2,177,281  

CVS Health Corp.

     55,065        4,036,815  

DaVita, Inc.(a)

     2,339        211,352  

Elevance Health, Inc.

     5,825        2,729,886  

HCA Healthcare, Inc.

     6,036        1,734,324  

Henry Schein, Inc.(a)

     5,870        474,355  

Laboratory Corp. of America Holdings

     3,804        862,405  

McKesson Corp.

     5,880        2,141,731  

Molina Healthcare, Inc.(a)

     942        280,612  

Quest Diagnostics, Inc.

     4,747        658,931  

Universal Health Services, Inc., Class B

     2,734        411,057  
    

 

 

  
           19,048,925  
Health Care REITs — 0.3%             

Healthpeak Properties, Inc.

     11,293        248,107  

Medical Properties Trust, Inc.

     25,463        223,311  

Omega Healthcare Investors, Inc.

     9,975        266,931  

Ventas, Inc.

     11,458        550,557  

Welltower, Inc.

     12,570        995,795  
    

 

 

  
       2,284,701  
Hotels, Restaurants & Leisure — 1.5%             

Aramark

     6,667        231,345  

Carnival Corp.(a)(c)

     43,412        399,825  

Darden Restaurants, Inc.

     3,066        465,817  

Domino’s Pizza, Inc.

     514        163,180  

Expedia Group, Inc.(a)

     6,324        594,203  

Las Vegas Sands Corp.(a)

     5,663        361,583  

McDonald’s Corp.

     18,304        5,413,408  

Norwegian Cruise Line Holdings Ltd.(a)(c)

     17,947        239,592  

Royal Caribbean Cruises Ltd.(a)

     4,411        288,612  

Starbucks Corp.

     17,602        2,011,733  

Wyndham Hotels & Resorts, Inc.

     1,302        88,822  

Wynn Resorts Ltd.(a)

     4,458        509,460  

Yum! Brands, Inc.

     4,852        682,094  
    

 

 

  
       11,449,674  
Household Durables — 0.6%             

DR Horton, Inc.

     13,405        1,472,137  

Garmin Ltd.

     6,530        641,050  

Lennar Corp., Class A

     7,175        809,412  

Lennar Corp., Class B

     408        39,911  

NVR, Inc.(a)

     130        759,200  

PulteGroup, Inc.

     9,650        647,997  

Whirlpool Corp.

     2,378        331,945  
    

 

 

  
       4,701,652  
Household Products — 2.8%             

Church & Dwight Co., Inc.

     5,811        564,364  

Clorox Co.

     2,166        358,733  

Colgate-Palmolive Co.

     35,825        2,858,835  

Kimberly-Clark Corp.

     14,490        2,099,456  

Procter & Gamble Co.

     101,164        15,820,027  
    

 

 

  
       21,701,415  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp.

     28,775        680,816  

Vistra Corp.

     9,622        229,581  
    

 

 

  
       910,397  
Industrial Conglomerates — 1.3%             

3M Co.

     23,619        2,508,810  

General Electric Co.

     16,542        1,637,162  

Honeywell International, Inc.

     28,651        5,725,616  
    

 

 

  
       9,871,588  
 

 

 

50  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Industrial REITs — 0.3%

     

Americold Realty Trust, Inc.

     11,470      $ 339,398  

Prologis, Inc.

     14,865        1,861,841  
    

 

 

  
       2,201,239  
Insurance — 2.8%             

Aflac, Inc.

     24,066        1,681,010  

Allstate Corp.

     11,315        1,309,824  

American Financial Group, Inc.

     1,864        228,769  

American International Group, Inc.

     31,901        1,692,029  

Aon PLC, Class A

     3,837        1,247,716  

Arch Capital Group Ltd.(a)

     8,947        671,651  

Assurant, Inc.

     1,237        152,312  

Chubb Ltd.

     12,582        2,536,028  

Cincinnati Financial Corp.

     4,480        476,851  

CNA Financial Corp.

     1,248        48,560  

Everest Re Group Ltd.

     1,152        435,456  

Fidelity National Financial, Inc., Class A

     11,968        424,744  

Globe Life, Inc.

     3,919        425,290  

Hartford Financial Services Group, Inc.

     13,589        964,683  

Lincoln National Corp.

     6,559        142,527  

Loews Corp.

     8,478        488,079  

Marsh & McLennan Cos., Inc.

     9,577        1,725,680  

MetLife, Inc.

     28,292        1,735,148  

Old Republic International Corp.

     11,798        298,135  

Principal Financial Group, Inc.

     9,767        729,497  

Prudential Financial, Inc.

     15,774        1,372,338  

Reinsurance Group of America, Inc.

     2,899        412,586  

Travelers Cos., Inc.

     9,885        1,790,569  

Unum Group

     8,147        343,803  

Willis Towers Watson PLC

     2,098        485,897  
    

 

 

  
           21,819,182  
Interactive Media & Services — 5.5%             

Alphabet, Inc., Class A(a)

     101,567        10,902,202  

Alphabet, Inc., Class C, NVS(a)

     88,542        9,582,015  

Meta Platforms, Inc., Class A(a)

     95,445        22,937,342  
    

 

 

  
       43,421,559  
IT Services — 1.2%             

Accenture PLC, Class A

     8,560        2,399,282  

Akamai Technologies, Inc.(a)

     3,413        279,764  

Cognizant Technology Solutions Corp., Class A

     21,773        1,300,066  

DXC Technology Co.(a)

     9,795        233,611  

International Business Machines Corp.

     38,771        4,901,042  
    

 

 

  
       9,113,765  
Leisure Products — 0.0%             

Hasbro, Inc.

     5,528        327,368  

Mattel, Inc.(a)

     7,902        142,236  
    

 

 

  
       469,604  
Life Sciences Tools & Services — 0.8%  

Avantor, Inc.(a)

     10,443        203,430  

IQVIA Holdings, Inc.(a)

     3,775        710,568  

PerkinElmer, Inc.

     5,433        708,952  

Thermo Fisher Scientific, Inc.

     7,429        4,122,352  

Waters Corp.(a)

     894        268,522  
    

 

 

  
       6,013,824  
Machinery — 1.8%             

AGCO Corp.

     2,636        326,706  

Caterpillar, Inc.

     12,096        2,646,605  

Cummins, Inc.

     6,044        1,420,582  

Deere & Co.

     4,486        1,695,798  

Dover Corp.

     2,972        434,388  

Fortive Corp.

     6,309        398,035  
Security   Shares      Value  

Machinery (continued)

     

Illinois Tool Works, Inc.

     11,908      $ 2,881,021  

Middleby Corp.(a)

     1,298        182,862  

Otis Worldwide Corp.

     11,075        944,697  

PACCAR, Inc.

     10,358        773,639  

Parker-Hannifin Corp.

     2,873        933,380  

Pentair PLC

     7,151        415,330  

Snap-on, Inc.

     2,294        595,087  

Stanley Black & Decker, Inc.

     6,391        551,799  

Westinghouse Air Brake Technologies Corp.

     3,105        303,265  
    

 

 

  
       14,503,194  
Media — 1.5%             

Charter Communications, Inc., Class A(a)

     2,680        988,116  

Comcast Corp., Class A

     180,387        7,462,610  

Fox Corp., Class A, NVS

     12,656        420,939  

Fox Corp., Class B

     5,931        181,133  

Interpublic Group of Cos., Inc.

     16,763        598,942  

Liberty Media Corp. - Liberty SiriusXM, Class A(a)(c)

     3,176        89,246  

Liberty Media Corp. - Liberty SiriusXM, Class C, NVS(a)

     6,515        182,029  

News Corp., Class A, NVS

     16,279        286,673  

News Corp., Class B

     5,128        91,022  

Omnicom Group, Inc.

     8,670        785,242  

Paramount Global, Class A(c)

     353        9,340  

Paramount Global, Class B, NVS

     21,880        510,460  

Sirius XM Holdings, Inc.(c)

     14,273        54,237  
    

 

 

  
           11,659,989  
Metals & Mining — 0.9%             

Alcoa Corp.

     7,536        279,887  

Cleveland-Cliffs, Inc.(a)

     22,326        343,374  

Freeport-McMoRan, Inc.

     61,263        2,322,480  

Newmont Corp.

     34,112        1,616,909  

Nucor Corp.

     4,794        710,375  

Reliance Steel & Aluminum Co.

     2,502        619,996  

Southern Copper Corp.

     3,622        278,278  

Steel Dynamics, Inc.

     7,178        746,153  
    

 

 

  
       6,917,452  
Mortgage Real Estate Investment Trusts (REITs) — 0.0%  

Annaly Capital Management, Inc.

     20,290        405,394  
    

 

 

  
Multi-Utilities — 1.5%             

Ameren Corp.

     7,233        643,520  

CenterPoint Energy, Inc.

     18,492        563,451  

CMS Energy Corp.

     8,287        515,949  

Consolidated Edison, Inc.

     15,198        1,496,547  

Dominion Energy, Inc.

     35,747        2,042,584  

DTE Energy Co.

     8,319        935,139  

NiSource, Inc.

     17,572        500,099  

Public Service Enterprise Group, Inc.

     21,377        1,351,026  

Sempra Energy

     13,485        2,096,783  

WEC Energy Group, Inc.

     13,519        1,300,122  
    

 

 

  
       11,445,220  
Office REITs — 0.1%             

Alexandria Real Estate Equities, Inc.

     3,824        474,864  

Boston Properties, Inc.

     6,076        324,216  
    

 

 

  
       799,080  
Oil, Gas & Consumable Fuels — 7.0%             

Antero Resources Corp.(a)

     11,757        270,293  

APA Corp.

     6,349        233,961  

Chesapeake Energy Corp.

     4,660        385,289  

Chevron Corp.

     52,365        8,827,692  

ConocoPhillips

     30,872        3,176,420  
 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   51

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Oil, Gas & Consumable Fuels (continued)

 

Coterra Energy, Inc.

     17,383      $ 445,005  

Devon Energy Corp.

     15,008        801,877  

Diamondback Energy, Inc.

     7,898        1,123,096  

EOG Resources, Inc.

     25,191        3,009,569  

EQT Corp.

     7,697        268,163  

Exxon Mobil Corp.

     176,587        20,897,306  

Hess Corp.

     4,403        638,699  

HF Sinclair Corp.

     3,848        169,735  

Kinder Morgan, Inc.

     84,654        1,451,816  

Marathon Oil Corp.

     13,649        329,760  

Marathon Petroleum Corp.

     11,877        1,448,994  

Matador Resources Co.

     1,603        78,595  

Murphy Oil Corp.

     3,421        125,585  

Occidental Petroleum Corp.

     31,214        1,920,597  

ONEOK, Inc.

     19,154        1,252,863  

Ovintiv, Inc.

     5,286        190,719  

Phillips 66

     20,008        1,980,792  

Pioneer Natural Resources Co.

     6,835        1,486,954  

Range Resources Corp.

     5,423        143,438  

Southwestern Energy Co.(a)

     30,632        158,980  

Targa Resources Corp.

     4,135        312,317  

Valero Energy Corp.

     16,554        1,898,247  

Williams Cos., Inc.

     52,098        1,576,486  
    

 

 

  
           54,603,248  
Passenger Airlines — 0.2%             

American Airlines Group, Inc.(a)

     12,932        176,393  

Delta Air Lines, Inc.(a)

     14,309        490,942  

Southwest Airlines Co.

     12,056        365,176  

United Airlines Holdings, Inc.(a)

     14,069        616,222  
    

 

 

  
       1,648,733  
Personal Care Products — 0.1%             

Estee Lauder Cos., Inc., Class A

     4,089        1,008,838  
    

 

 

  
Pharmaceuticals — 5.4%             

Bristol-Myers Squibb Co.

     91,174        6,087,688  

Catalent, Inc.(a)

     3,433        172,062  

Jazz Pharmaceuticals PLC(a)

     2,682        376,741  

Johnson & Johnson

     112,114        18,353,062  

Merck & Co., Inc.

     59,084        6,822,429  

Organon & Co.

     10,831        266,767  

Pfizer, Inc.

     240,709        9,361,173  

Royalty Pharma PLC, Class A

     16,005        562,576  

Viatris, Inc.

     52,386        488,761  
    

 

 

  
       42,491,259  
Professional Services — 0.5%             

Booz Allen Hamilton Holding Corp., Class A

     2,326        222,645  

Clarivate PLC(a)(c)

     9,750        86,385  

Concentrix Corp.

     1,061        102,397  

Equifax, Inc.

     1,747        364,040  

Genpact Ltd.

     3,499        155,880  

Jacobs Solutions, Inc.

     3,065        353,885  

Leidos Holdings, Inc.

     5,904        550,607  

Paychex, Inc.

     6,335        695,963  

Robert Half International, Inc.

     4,621        337,333  

SS&C Technologies Holdings, Inc.

     9,468        554,257  

TransUnion

     3,253        223,839  
    

 

 

  
       3,647,231  
Real Estate Management & Development — 0.1%  

CBRE Group, Inc., Class A(a)

     9,134        700,212  

Jones Lang LaSalle, Inc.(a)

     2,023        281,278  
    

 

 

  
       981,490  
Security   Shares      Value  

Residential REITs — 0.3%

     

American Homes 4 Rent, Class A

     4,842      $ 161,045  

AvalonBay Communities, Inc.

     2,448        441,546  

Equity LifeStyle Properties, Inc.

     2,776        191,266  

Equity Residential

     5,641        356,793  

Essex Property Trust, Inc.

     1,586        348,492  

Mid-America Apartment Communities, Inc.

     2,374        365,121  

UDR, Inc.

     5,368        221,860  
    

 

 

  
       2,086,123  
Retail REITs — 0.5%             

Brixmor Property Group, Inc.

     8,776        187,192  

Federal Realty Investment Trust

     1,365        134,985  

Kimco Realty Corp.

     26,732        512,987  

National Retail Properties, Inc.

     7,804        339,474  

Realty Income Corp.

     15,129        950,706  

Regency Centers Corp.

     3,909        240,130  

Simon Property Group, Inc.

     13,984        1,584,667  
    

 

 

  
       3,950,141  
Semiconductors & Semiconductor Equipment — 4.6%  

Analog Devices, Inc.

     13,099        2,356,248  

Applied Materials, Inc.

     36,153        4,086,374  

Broadcom, Inc.

     9,321        5,839,606  

First Solar, Inc.(a)

     4,232        772,679  

Intel Corp.

     177,402        5,510,106  

KLA Corp.

     5,943        2,297,207  

Lam Research Corp.

     5,787        3,032,851  

Microchip Technology, Inc.

     13,845        1,010,547  

Micron Technology, Inc.

     27,644        1,779,168  

NXP Semiconductors NV

     11,084        1,814,894  

Qorvo, Inc.(a)

     4,317        397,509  

QUALCOMM, Inc.

     26,971        3,150,213  

Skyworks Solutions, Inc.

     4,655        492,964  

Teradyne, Inc.

     2,592        236,857  

Texas Instruments, Inc.

     18,242        3,050,062  

Wolfspeed, Inc.(a)(c)

     2,996        139,464  
    

 

 

  
           35,966,749  
Software — 0.8%             

Gen Digital, Inc.

     24,689        436,255  

Oracle Corp.

     44,866        4,249,708  

Roper Technologies, Inc.

     2,698        1,226,996  

VMware, Inc., Class A(a)

     4,648        581,139  
    

 

 

  
       6,494,098  
Specialized REITs — 1.0%             

American Tower Corp.

     9,278        1,896,331  

Crown Castle, Inc.

     9,244        1,137,844  

CubeSmart

     3,386        154,029  

Digital Realty Trust, Inc.

     5,814        576,458  

Gaming & Leisure Properties, Inc.

     7,559        393,068  

Iron Mountain, Inc.

     7,769        429,160  

Lamar Advertising Co., Class A

     2,552        269,695  

Life Storage, Inc.

     1,454        195,389  

Public Storage

     2,586        762,430  

VICI Properties, Inc.

     29,032        985,346  

Weyerhaeuser Co.

     31,333        937,170  
    

 

 

  
       7,736,920  
Specialty Retail — 2.4%             

Advance Auto Parts, Inc.

     2,558        321,106  

AutoZone, Inc.(a)

     274        729,747  

Bath & Body Works, Inc.

     9,727        341,418  

Best Buy Co., Inc.

     8,423        627,682  

Burlington Stores, Inc.(a)

     1,259        242,748  
 

 

 

52  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Specialty Retail (continued)

    

CarMax, Inc.(a)(c)

     6,841     $ 479,075  

GameStop Corp., Class A(a)(c)

     10,761       207,580  

Home Depot, Inc.

     29,446       8,849,701  

Lowe’s Cos., Inc.

     15,508       3,223,028  

Murphy U.S.A., Inc.

     570       156,881  

O’Reilly Automotive, Inc.(a)

     1,273       1,167,735  

Penske Automotive Group, Inc.(c)

     1,091       151,191  

TJX Cos., Inc.

     25,289       1,993,279  

Williams-Sonoma, Inc.

     2,840       343,753  
   

 

 

  
      18,834,924  
Technology Hardware, Storage & Peripherals — 0.5%  

Dell Technologies, Inc., Class C

     10,364       450,730  

Hewlett Packard Enterprise Co.

     54,768       784,278  

HP, Inc.

     37,164       1,104,143  

NetApp, Inc.

     6,173       388,220  

Seagate Technology Holdings PLC

     8,299       487,732  

Western Digital Corp.(a)

     13,734       472,999  
   

 

 

  
      3,688,102  
Textiles, Apparel & Luxury Goods — 0.4%            

NIKE, Inc., Class B

     16,739       2,121,166  

Tapestry, Inc.

     10,259       418,670  

VF Corp.

     14,067       330,715  
   

 

 

  
      2,870,551  
Tobacco — 1.3%            

Altria Group, Inc.

     76,567       3,637,698  

Philip Morris International, Inc.

     66,477       6,645,706  
   

 

 

  
          10,283,404  

 

Security   Shares     Value  

Water Utilities — 0.1%

    

American Water Works Co., Inc.

     3,151     $ 467,136  

Essential Utilities, Inc.

     4,394       187,624  
   

 

 

  
      654,760  
   

 

 

  

Total Long-Term Investments — 99.8%
(Cost: $711,193,882)

       780,754,404  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 0.6%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.02%(b)(d)(e)

     2,354,836       2,355,543  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(b)(d)

     2,347,896       2,347,896  
   

 

 

  

Total Short-Term Securities — 0.6%
(Cost: $4,701,959)

       4,703,439  
   

 

 

  

Total Investments — 100.4%
(Cost: $715,895,841)

       785,457,843  

Liabilities in Excess of Other Assets — (0.4)%

 

     (3,083,662 ) 
   

 

 

  

Net Assets — 100.0%

     $   782,374,181  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

All or a portion of this security is on loan.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/22		     Purchases
at Cost		     Proceeds
from Sale		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
04/30/23		     Shares
Held at
04/30/23		     Income    

Capital

Gain
Distributions
from Underlying
Funds

  

BlackRock Cash
Funds: Institutional, SL Agency Shares

   $ 3,897,401     $ —     $ (1,544,285 )(a)    $ 1,722     $ 705     $ 2,355,543       2,354,836     $ 98,303 (b)    $ —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     2,050,000       297,896 (a)      —       —       —       2,347,896       2,347,896       46,691       1  

BlackRock, Inc.

     3,367,025       1,033,853       (362,663 )      23,877       247,683       4,309,775       6,421       116,010       —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $ 25,599     $ 248,388     $   9,013,214       $   261,004     $ 1  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   53

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		        Expiration
Date		        Notional
Amount
(000)		        Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

                  

E-Mini Consumer Staples Index

      5          06/16/23        $ 391        $ 7,992  

E-Mini Financial Select Sector Index

      7          06/16/23          719          18,873  

S&P 500 E-Mini Index

      2          06/16/23          419          5,521  
                 

 

 

  
                  $ 32,386  
                 

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 32,386      $ —      $ —      $ —      $   32,386  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		     Total  

Net Realized Gain (Loss) from

                    

Futures contracts

    $ —      $ —      $   (34,386)      $ —      $ —      $ —     $   (34,386)  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

    $ —      $ —      $ 86,274      $ —      $ —      $ —     $ 86,274  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

         

Average notional value of contracts — long

    $ 2,111,264  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

54  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)

April 30, 2023

   

iShares® Morningstar Value ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

    $ 780,754,404        $ —        $ —        $ 780,754,404  

Short-Term Securities

                  

Money Market Funds

      4,703,439          —          —          4,703,439  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $       785,457,843        $                 —        $                 —        $       785,457,843  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Equity Contracts

    $ 32,386        $ —        $ —        $ 32,386  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

S C H E D U L E S   O F   I N V E S T M E N T S

   55

 

Statements of Assets and Liabilities

April 30, 2023

 

     iShares
Morningstar
Mid-Cap
Value ETF		     iShares
Morningstar
Small-Cap ETF		     iShares
Morningstar
U.S. Equity
ETF		      iShares
Morningstar
Value ETF		  

ASSETS

         

Investments, at value — unaffiliated(a)(b)

   $ 514,827,086     $ 199,734,068     $ 743,692,989      $ 776,444,629  

Investments, at value — affiliated(c)

     12,747,062       24,929,394       9,219,617        9,013,214  

Cash

     17,486       56,336       42,535        36,837  

Cash pledged:

         

Futures contracts

     68,000       30,000       125,000        82,000  

Receivables:

         

Investments sold

     1,565,854       767,522       112,843        16,988  

Securities lending income — affiliated

     10,937       42,416       4,688        3,455  

Dividends — unaffiliated

     435,116       71,217       587,634        1,097,851  

Dividends — affiliated

     3,746       1,383       5,570        7,145  

Variation margin on futures contracts

     5,716       3,690       19,113        12,942  
 

 

 

    

 

 

    

 

 

     

 

 

  

Total assets

     529,681,003       225,636,026       753,809,989        786,715,061  
 

 

 

    

 

 

    

 

 

     

 

 

  

LIABILITIES

         

Collateral on securities loaned

     11,875,090       24,584,539       5,533,459        2,355,189  

Payables:

         

Investments purchased

     1,565,854       785,575       112,843        1,959,934  

Investment advisory fees

     25,200       6,607       18,300        25,757  
 

 

 

    

 

 

    

 

 

     

 

 

  

Total liabilities

     13,466,144       25,376,721       5,664,602        4,340,880  
 

 

 

    

 

 

    

 

 

     

 

 

  

NET ASSETS

   $ 516,214,859     $ 200,259,305     $ 748,145,387      $ 782,374,181  
 

 

 

    

 

 

    

 

 

     

 

 

  

NET ASSETS CONSIST OF:

         

Paid-in capital

   $ 527,902,048     $ 259,287,288     $ 738,065,306      $ 759,051,080  

Accumulated earnings (loss)

     (11,687,189 )      (59,027,983 )      10,080,081        23,323,101  
 

 

 

    

 

 

    

 

 

     

 

 

  

NET ASSETS

   $ 516,214,859     $ 200,259,305     $ 748,145,387      $ 782,374,181  
 

 

 

    

 

 

    

 

 

     

 

 

  

NET ASSET VALUE

         

Shares outstanding

     8,300,000       4,300,000       13,100,000        12,050,000  
 

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value

   $ 62.19     $ 46.57     $ 57.11      $ 64.93  
 

 

 

    

 

 

    

 

 

     

 

 

  

Shares authorized

     Unlimited       Unlimited       Unlimited        Unlimited  
 

 

 

    

 

 

    

 

 

     

 

 

  

Par value

     None       None       None        None  
 

 

 

    

 

 

    

 

 

     

 

 

  

(a) Investments, at cost — unaffiliated

   $ 491,005,295     $ 225,844,869     $ 665,889,705      $ 706,496,520  

(b) Securities loaned, at value

   $ 11,857,447     $ 24,040,096     $ 5,439,425      $ 2,331,318  

(c)  Investments, at cost — affiliated

   $ 12,741,518     $ 24,918,931     $ 8,622,911      $ 9,399,321  

See notes to financial statements.

 

 

56  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

 

Statements of Operations

Year Ended April 30, 2023

 

     iShares
Morningstar
Mid-Cap
Value ETF		     iShares
Morningstar
Small-Cap ETF		     iShares
Morningstar
U.S. Equity
ETF		     iShares
Morningstar
Value ETF		  

INVESTMENT INCOME

 

  

Dividends — unaffiliated

   $ 12,112,942     $ 3,047,064     $ 12,264,293     $ 18,637,357  

Dividends — affiliated

     28,072       11,379       88,396       162,701  

Securities lending income — affiliated — net

     143,732       423,271       68,761       98,303  

Foreign taxes withheld

     —       (1,766 )      (2,875 )      (3,721 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total investment income

     12,284,746       3,479,948       12,418,575       18,894,640  
 

 

 

    

 

 

    

 

 

    

 

 

  

EXPENSES

        

Investment advisory

     294,339       81,546       221,928       306,054  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses

     294,339       81,546       221,928       306,054  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     11,990,407       3,398,402       12,196,647       18,588,586  
 

 

 

    

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — unaffiliated

     (11,260,444 )      (13,167,878 )      (16,211,441 )      (344,051 ) 

Investments — affiliated

     (643 )      (2,948 )      (3,277 )      (10,107 ) 

Capital gain distributions from underlying funds — affiliated

     —       —       1       1  

Futures contracts

     (61,860 )      (43,488 )      (297,208 )      (34,386 ) 

In-kind redemptions — unaffiliated(a)

     17,922,126       886,227       6,691,831       10,900,277  

In-kind redemptions — affiliated(a)

     —       —       60,847       35,706  
 

 

 

    

 

 

    

 

 

    

 

 

  
    6,599,179       (12,328,087 )      (9,759,247 )      10,547,440  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

        

Investments — unaffiliated

     (33,210,541 )      3,198,881       7,680,664       (10,804,932 ) 

Investments — affiliated

     3,021       10,230       92,141       248,388  

Futures contracts

     40,990       10,811       231,868       86,274  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (33,166,530 )      3,219,922       8,004,673       (10,470,270 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

     (26,567,351 )      (9,108,165 )      (1,754,574 )      77,170  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $ (14,576,944 )    $ (5,709,763 )    $ 10,442,073     $ 18,665,756  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   57

 

Statements of Changes in Net Assets

 

   

iShares Morningstar Mid-Cap Value

ETF

    

iShares Morningstar Small-Cap

ETF

  
 

 

 

    

 

 

  
     Year Ended
04/30/23		     Year Ended
04/30/22		     Year Ended
04/30/23		     Year Ended
04/30/22		  

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment income

   $ 11,990,407     $ 9,049,985     $ 3,398,402     $ 2,981,463  

Net realized gain (loss)

     6,599,179       34,370,084       (12,328,087 )      7,667,954  

Net change in unrealized appreciation (depreciation)

     (33,166,530 )      (29,467,257 )      3,219,922       (46,929,295 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     (14,576,944 )      13,952,812       (5,709,763 )      (36,279,878 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Decrease in net assets resulting from distributions to shareholders

     (11,819,760 )      (9,487,846 )      (3,393,435 )      (2,987,187 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

        

Net increase (decrease) in net assets derived from capital share transactions

     45,120,668       35,331,452       9,391,283       (2,562,649 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

        

Total increase (decrease) in net assets

     18,723,964       39,796,418       288,085       (41,829,714 ) 

Beginning of year

     497,490,895       457,694,477       199,971,220       241,800,934  
 

 

 

    

 

 

    

 

 

    

 

 

  

End of year

   $     516,214,859     $     497,490,895     $     200,259,305     $     199,971,220  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

58   2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

 

Statements of Changes in Net Assets  (continued)

 

    iShares Morningstar U.S. Equity ETF     iShares Morningstar Value ETF  
 

 

 

    

 

 

  
     Year Ended
04/30/23		     Year Ended
04/30/22		     Year Ended
04/30/23		     Year Ended
04/30/22		  

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment income

   $ 12,196,647     $ 11,447,954     $ 18,588,586     $ 16,182,799  

Net realized gain (loss)

     (9,759,247 )      19,314,762       10,547,440       10,355,512  

Net change in unrealized appreciation (depreciation)

     8,004,673       (42,727,180 )      (10,470,270 )      1,105,337  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     10,442,073       (11,964,464 )      18,665,756       27,643,648  
 

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Decrease in net assets resulting from distributions to shareholders

     (12,049,075 )      (11,513,059 )      (18,183,374 )      (16,144,141 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

        

Net increase (decrease) in net assets derived from capital share transactions

     (40,561,179 )      (77,396,311 )      (6,551,556 )      89,185,958  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

        

Total increase (decrease) in net assets

     (42,168,181 )      (100,873,834 )      (6,069,174 )      100,685,465  

Beginning of year

     790,313,568       891,187,402       788,443,355       687,757,890  
 

 

 

    

 

 

    

 

 

    

 

 

  

End of year

   $     748,145,387     $     790,313,568     $  782,374,181     $  788,443,355  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S   59

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Morningstar Mid-Cap Value ETF  
     
 Year Ended
04/30/23		  
 		    
 Year Ended
04/30/22		  
 		    
 Year Ended
04/30/21		  
(a) 		    
 Year Ended
04/30/20		  
(a) 		    
 Year Ended
04/30/19		  
(a) 

Net asset value, beginning of year

   $ 65.46     $ 64.01     $ 40.13     $ 53.28     $ 52.55  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(b)

     1.53       1.24       1.14       1.50       1.23  

Net realized and unrealized gain (loss)(c)

     (3.29 )      1.50       23.92       (13.08 )      0.73  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (1.76 )      2.74       25.06       (11.58 )      1.96  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(d)

     (1.51 )      (1.29 )      (1.18 )      (1.57 )      (1.23 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 62.19     $ 65.46     $ 64.01     $ 40.13     $ 53.28  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(e)

          

Based on net asset value

     (2.60 )%      4.28 %      63.45 %      (22.07 )%      3.83 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

          

Total expenses

     0.06 %      0.06 %      0.27 %      0.30 %      0.30 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.44 %      1.88 %      2.32 %      2.95 %      2.36 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $   516,215     $   497,491     $   457,694     $   331,048     $   463,524  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate(g)

     37 %      42 %      95 %      51 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Per share amounts reflect a three-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

60  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Small-Cap ETF  
     
 Year Ended
04/30/23		  
 		     
 Year Ended
04/30/22		  
 		     
 Year Ended
04/30/21		  
(a) 		     
 Year Ended
04/30/20		  
(a) 		     
 Year Ended
04/30/19		  
(a) 

Net asset value, beginning of year

   $ 48.77      $ 58.27      $ 35.60      $ 43.90      $ 42.58  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(b)

     0.79        0.72        0.56        0.57        0.58  

Net realized and unrealized gain (loss)(c)

     (2.20 )       (9.50 )       22.71        (8.23 )       1.34  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     (1.41 )       (8.78 )       23.27        (7.66 )       1.92  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(d)

     (0.79 )       (0.72 )       (0.60 )       (0.64 )       (0.60 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 46.57      $ 48.77      $ 58.27      $ 35.60      $ 43.90  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(e)

              

Based on net asset value

     (2.85 )%       (15.22 )%       65.95 %       (17.58 )%       4.56 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(f)

              

Total expenses

     0.04 %       0.04 %       0.22 %       0.25 %       0.25 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

     1.67 %       1.28 %       1.24 %       1.34 %       1.33 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

              

Net assets, end of year (000)

   $   200,259      $   199,971      $   241,801      $   185,115      $   237,032  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(g)

     28 %       41 %       175 %       62 %       67 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S   61

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar U.S. Equity ETF  
     
 Year Ended
04/30/23		  
 		     
 Year Ended
04/30/22		  
 		     
 Year Ended
04/30/21		  
(a) 		     
 Year Ended
04/30/20		  
(a) 		     
 Year Ended
04/30/19		  
(a) 

Net asset value, beginning of year

   $ 57.06      $ 59.02      $ 40.80      $ 41.90      $ 38.08  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(b)

     0.90        0.79        0.66        0.81        0.81  

Net realized and unrealized gain (loss)(c)

     0.04        (1.95 )       18.21        (0.88 )       3.82  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     0.94        (1.16 )       18.87        (0.07 )       4.63  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(d)

     (0.89 )       (0.80 )       (0.65 )       (1.03 )       (0.81 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 57.11      $ 57.06      $ 59.02      $ 40.80      $ 41.90  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(e)

              

Based on net asset value

     1.77 %       (2.08 )%       46.58 %       (0.13 )%       12.33 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(f)

              

Total expenses

     0.03 %       0.03 %       0.18 %       0.20 %       0.20 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

     1.65 %       1.27 %       1.32 %       1.90 %       2.05 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

              

Net assets, end of year (000)

   $   748,145      $   790,314      $   891,187      $   718,065      $   863,172  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(g)

     4 %       6 %       131 %       49 %       38 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

62   2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Value ETF  
     
 Year Ended
04/30/23		  
 		     
 Year Ended
04/30/22		  
 		     
 Year Ended
04/30/21		  
(a) 		     
 Year Ended
04/30/20		  
(a) 		     
 Year Ended
04/30/19		  
(a) 

Net asset value, beginning of year

   $ 64.89      $ 63.68      $ 48.12      $ 54.18      $ 50.55  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(b)

     1.54        1.38        1.55        1.65        1.49  

Net realized and unrealized gain (loss)(c)

     0.00(d)        1.20        15.58        (6.04 )       3.58  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     1.54        2.58        17.13        (4.39 )       5.07  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(e)

     (1.50 )       (1.37 )       (1.57 )       (1.67 )       (1.44 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 64.93      $ 64.89      $ 63.68      $ 48.12      $ 54.18  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(f)

              

Based on net asset value

     2.53 %       4.02 %       36.36 %       (8.23 )%       10.22 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(g)

              

Total expenses

     0.04 %       0.04 %       0.22 %       0.25 %       0.25 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

     2.43 %       2.08 %       2.88 %       3.06 %       2.86 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

              

Net assets, end of year (000)

   $   782,374      $   788,443      $   687,758      $   447,483      $   492,996  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate(h)

     27 %       21 %       112 %       36 %       24 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Amount is less than $0.005 per share.

(e) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S   63

Notes to Financial Statements

 

1.

ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

iShares ETF   Diversification
Classification

Morningstar Mid-Cap Value

   Diversified

Morningstar Small-Cap

   Diversified

Morningstar U.S. Equity

   Diversified

Morningstar Value

   Diversified

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign 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 jurisdiction in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of April 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

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

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

 

 

64   2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements  (continued)

 

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

  •  

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

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

  •  

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

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

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

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

  •  

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and

 

  •  

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

 

 

N O T E S    T O   F I N A N C I A L   S T A T E M E N T S   65

Notes to Financial Statements  (continued)

 

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

iShares ETF and Counterparty    
 Securities
Loaned at Value		  
 		     
 Cash
Collateral Received		  
(a) 		    

 Non-Cash
Collateral Received,
at Fair Value		  
 
(a) 		    
 Net
Amount		  
(b) 

Morningstar Mid-Cap Value

         

Barclays Bank PLC

   $ 2,591,890      $ (2,591,890 )    $ —     $ —  

Barclays Capital, Inc.

     4,987        (4,987 )      —       —  

BMO Capital Markets Corp.

     7,752        (7,752 )      —       —  

BNP Paribas SA

     2,826        (2,826 )      —       —  

BofA Securities, Inc.

     944,801        (929,615 )      —       15,186  

Citigroup Global Markets, Inc.

     328        (328 )      —       —  

Goldman Sachs & Co. LLC

     2,423,161        (2,412,155 )      —       11,006  

J.P. Morgan Securities LLC

     1,648,202        (1,635,775 )      —       12,427  

Jefferies LLC

     14,490        (14,490 )      —       —  

Morgan Stanley

     1,391,031        (1,391,031 )      —       —  

RBC Capital Market LLC

     1,151,090        (1,151,090 )      —       —  

Toronto-Dominion Bank

     746,380        (746,380 )      —       —  

UBS AG

     675,216        (662,572 )      —       12,644  

Wells Fargo Bank N.A.

     250,497        (250,424 )      —       73  

Wells Fargo Securities LLC

     4,796        (4,796 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 11,857,447      $ (11,806,111 )    $ —     $ 51,336  
 

 

 

     

 

 

    

 

 

    

 

 

  

Morningstar Small-Cap

         

Barclays Bank PLC

   $ 876,359      $ (876,359 )    $ —     $ —  

Barclays Capital, Inc.

     255,230        (255,230 )      —       —  

BMO Capital Markets Corp.

     8,372        (8,372 )      —       —  

BNP Paribas SA

     2,455,202        (2,455,202 )      —       —  

BofA Securities, Inc.

     1,577,119        (1,577,119 )      —       —  

Citadel Clearing LLC

     295,555        (295,555 )      —       —  

Citigroup Global Markets, Inc.

     924,245        (924,245 )      —       —  

Credit Suisse Securities (USA) LLC

     83,194        (83,194 )      —       —  

Goldman Sachs & Co. LLC

     5,154,900        (5,154,900 )      —       —  

HSBC Bank PLC

     580,766        (580,766 )      —       —  

ING Financial Markets LLC

     13,415        (13,415 )      —       —  

J.P. Morgan Securities LLC

     3,018,475        (3,018,475 )      —       —  

Jefferies LLC

     412,285        (412,285 )      —       —  

Morgan Stanley

     3,308,870        (3,308,870 )      —       —  

National Financial Services LLC

     1,003,130        (1,003,130 )      —       —  

Natixis SA

     662,158        (662,158 )      —       —  

Pershing LLC

     71        (71 )      —       —  

RBC Capital Market LLC

     24,676        (24,676 )      —       —  

Scotia Capital (USA), Inc.

     216,873        (216,873 )      —       —  

SG Americas Securities LLC

     230,048        (230,048 )      —       —  

State Street Bank & Trust Co.

     205,106        (205,106 )      —       —  

Toronto-Dominion Bank

     407,922        (407,922 )      —       —  

UBS AG

     1,120,677        (1,120,677 )      —       —  

UBS Securities LLC

     52,436        (52,436 )      —       —  

Wells Fargo Bank N.A.

     741,067        (741,067 )      —       —  

Wells Fargo Securities LLC

     411,945        (411,945 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 24,040,096      $ (24,040,096 )    $ —     $ —  
 

 

 

     

 

 

    

 

 

    

 

 

  

Morningstar U.S. Equity

         

Barclays Bank PLC

   $ 140,747      $ (140,747 )    $ —     $ —  

Barclays Capital, Inc.

     8,899        (8,899 )      —       —  

BNP Paribas SA

     1,610,850        (1,610,850 )      —       —  

BofA Securities, Inc.

     420,681        (420,681 )      —       —  

Citadel Clearing LLC

     357,128        (357,128 )      —       —  

Citigroup Global Markets, Inc.

     160,717        (160,717 )      —       —  

Goldman Sachs & Co. LLC

     673,974        (673,974 )      —       —  

J.P. Morgan Securities LLC

     306,386        (306,386 )      —       —  

Morgan Stanley

     440,179        (440,179 )      —       —  

Natixis SA

     205,932        (204,191 )      —       1,741  

RBC Capital Market LLC

     50,014        (50,014 )      —       —  

Toronto-Dominion Bank

     1,063,918        (1,063,918 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 5,439,425      $ (5,437,684 )    $ —     $ 1,741  
 

 

 

     

 

 

    

 

 

    

 

 

  

Morningstar Value

         

Barclays Bank PLC

   $ 35,179      $ (35,179 )    $ —     $ —  

BNP Paribas SA

     83,745        (83,745 )      —       —  

BofA Securities, Inc.

     477,823        (477,823 )      —       —  

Goldman Sachs & Co. LLC

     501,852        (497,708 )      —       4,144  

J.P. Morgan Securities LLC

     5,893        (5,893 )      —       —  

Jefferies LLC

     9,234        (9,234 )      —       —  

 

 

66  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements  (continued)

 

iShares ETF and Counterparty    
 Securities
Loaned at Value		  
 		     
 Cash
Collateral Received		  
(a) 		    

 Non-Cash
Collateral Received,
at Fair Value		  
 
(a) 		    
 Net
Amount		  
(b) 

Morningstar Value (continued)

         

Morgan Stanley

   $ 178,089      $ (178,089 )    $ —     $ —  

Natixis SA

     26,321        (26,037 )      —       284  

Toronto-Dominion Bank

     361,215        (361,215 )      —       —  

UBS AG

     237,189        (232,748 )      —       4,441  

UBS Securities LLC

     285,313        (285,313 )      —       —  

Wells Fargo Bank N.A.

     129,465        (128,701 )      —       764  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 2,331,318      $ (2,321,685 )    $ —     $ 9,633  
 

 

 

     

 

 

    

 

 

    

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

 
  (b) 

The market value of the loaned securities is determined as of April 30, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained to an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

iShares ETF   Investment Advisory Fees   

Morningstar Mid-Cap Value

   0.06%

Morningstar Small-Cap

   0.04   

Morningstar U.S. Equity

   0.03   

Morningstar Value

   0.04   

Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.

 

 

N O T E S    T O   F I N A N C I A L   S T A T E M E N T S

   67

Notes to Financial Statements  (continued)

 

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the year ended April 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Amounts  

Morningstar Mid-Cap Value

   $ 38,444  

Morningstar Small-Cap

       109,031  

Morningstar U.S. Equity

     20,462  

Morningstar Value

     26,555  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)		  

Morningstar Mid-Cap Value

   $   105,877,754      $   103,998,945      $ (7,627,860 ) 

Morningstar Small-Cap

     24,202,645        20,493,113        (3,213,309 ) 

Morningstar U.S. Equity

     6,878,490        8,406,921          (11,474,578 ) 

Morningstar Value

     122,743,769        101,898,576        5,227,356  

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the year ended April 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Morningstar Mid-Cap Value

   $   182,629,611      $   182,618,124  

Morningstar Small-Cap

     56,631,599        55,976,437  

Morningstar U.S. Equity

     31,625,944        31,585,968  

Morningstar Value

     203,250,426        202,994,101  

 

 

68  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements  (continued)

 

For the year ended April 30, 2023, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases		     

In-kind

Sales

  

Morningstar Mid-Cap Value

   $   107,153,899      $   62,747,225  

Morningstar Small-Cap

     17,632,796        9,092,428  

Morningstar U.S. Equity

     11,033,707        51,752,033  

Morningstar Value

     47,290,297        54,038,640  

 

8.

INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of April 30, 2023, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:

 

iShares ETF   Paid-in capital      Accumulated earnings (loss)  

Morningstar Mid-Cap Value

   $ 17,687,863      $ (17,687,863 ) 

Morningstar Small-Cap

     824,916        (824,916 ) 

Morningstar U.S. Equity

     6,576,121        (6,576,121 ) 

Morningstar Value

     10,674,984        (10,674,984 ) 

The tax character of distributions paid was as follows:

 

iShares ETF   Year Ended
April 30, 2023		      Year Ended
April 30, 2022		  

Morningstar Mid-Cap Value

     

Ordinary income

   $ 11,819,760      $ 9,487,846  
 

 

 

     

 

 

  

Morningstar Small-Cap

     

Ordinary income

   $ 3,393,435      $ 2,987,187  
 

 

 

     

 

 

  

Morningstar U.S. Equity

     

Ordinary income

   $ 12,049,075      $ 11,513,059  
 

 

 

     

 

 

  

Morningstar Value

     

Ordinary income

   $ 18,183,374      $ 16,144,141  
 

 

 

     

 

 

  

As of April 30, 2023, the tax components of accumulated net earnings (losses) were as follows:

 

iShares ETF   Undistributed
Ordinary Income		      Non-expiring
Capital Loss
Carryforwards(a)		     Net Unrealized
Gains (Losses)(b)		     Total  

Morningstar Mid-Cap Value

   $ 110,841      $ (33,455,274 )    $ 21,657,244     $ (11,687,189 ) 

Morningstar Small-Cap

     54,030        (31,567,199 )      (27,514,814 )      (59,027,983 ) 

Morningstar U.S. Equity

     723,384        (68,380,131 )      77,736,828       10,080,081  

Morningstar Value

     1,481,338        (45,692,589 )      67,534,352          23,323,101  

 

(a) 

Amounts available to offset future realized capital gains.

 
(b) 

The difference between book-basis and tax-basis net accumulated losses was attributable primarily to the tax deferral of losses on wash sales, the characterization of corporate actions, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the timing and recognition of realized gains/losses for tax purposes and the realization for tax purposes of unrealized gains (losses) on certain futures contracts.

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

For the year ended April 30, 2023, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:

 

iShares ETF   Amounts

Morningstar Value

   $  386,280

 

 

N O T E S    T O   F I N A N C I A L   S T A T E M E N T S

   69

Notes to Financial Statements  (continued)

 

As of April 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

Morningstar Mid-Cap Value

   $ 505,916,904      $ 55,988,408      $ (34,331,164 )    $ 21,657,244  

Morningstar Small-Cap

     252,178,276        26,050,778        (53,565,592 )      (27,514,814 ) 

Morningstar U.S. Equity

     675,175,778        154,380,486        (76,643,658 )      77,736,828  

Morningstar Value

     717,923,491        110,535,820        (43,001,468 )      67,534,352  

 

9.

PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

 

 

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Notes to Financial Statements  (continued)

 

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

The Funds invests a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invests.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

10.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

Transactions in capital shares were as follows:

 

 

  
   

 

Year Ended

04/30/23

 

           

 

Year Ended

04/30/22

 

  
 

 

 

       

 

 

  
iShares ETF   Shares     Amount            Shares     Amount  

 

  

Morningstar Mid-Cap Value

           

Shares sold

     1,750,000     $ 108,029,844          2,650,000     $ 174,198,554  

Shares redeemed

         (1,050,000 )          (62,909,176 )             (2,200,000 )          (138,867,102 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    700,000     $ 45,120,668          450,000     $ 35,331,452  
 

 

 

    

 

 

       

 

 

    

 

 

  

Morningstar Small-Cap

           

Shares sold

     400,000     $ 18,341,725          50,000     $ 2,817,190  

Shares redeemed

     (200,000 )      (8,950,442 )         (100,000 )      (5,379,839 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    200,000     $ 9,391,283          (50,000 )    $ (2,562,649 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Morningstar U.S. Equity

           

Shares sold

     200,000     $ 10,798,586          100,000     $ 6,211,849  

Shares redeemed

     (950,000 )      (51,359,765 )         (1,350,000 )      (83,608,160 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (750,000 )    $ (40,561,179 )         (1,250,000 )    $ (77,396,311 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Morningstar Value

           

Shares sold

     750,000     $ 47,324,307          1,600,000     $ 105,690,073  

Shares redeemed

     (850,000 )      (53,875,863 )         (250,000 )      (16,504,115 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (100,000 )    $ (6,551,556 )         1,350,000     $ 89,185,958  
 

 

 

    

 

 

       

 

 

    

 

 

  

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

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

11.

SUBSEQUENT EVENTS

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

 

 

N O T E S    T O   F I N A N C I A L   S T A T E M E N T S

   71

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of iShares Trust and

Shareholders of each of the four funds listed in the table below

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (four of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of April 30, 2023, the related statements of operations for the year ended April 30, 2023, the statements of changes in net assets for each of the two years in the period ended April 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of April 30, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended April 30, 2023 and each of the financial highlights for each of the five years in the period ended April 30, 2023 in conformity with accounting principles generally accepted in the United States of America.

 

 

iShares Morningstar Mid-Cap Value ETF

 

iShares Morningstar Small-Cap ETF

 

iShares Morningstar U.S. Equity ETF

 

iShares Morningstar Value ETF

 

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

June 21, 2023

We have served as the auditor of one or more BlackRock investment companies since 2000.

 

 

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Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended April 30, 2023:

 

 

  
iShares ETF   Qualified Dividend
Income		  

 

  

Morningstar Mid-Cap Value

   $       10,237,944  

Morningstar Small-Cap

     2,335,817  

Morningstar U.S. Equity

     11,532,410  

Morningstar Value

     17,793,411  

 

  

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified business income for individuals for the fiscal year ended April 30, 2023:

 

 

  
iShares ETF   Qualified Business
Income		  

 

  

Morningstar Mid-Cap Value

   $       805,033  

Morningstar Small-Cap

     304,676  

Morningstar U.S. Equity

     396,079  

Morningstar Value

     435,484  

 

  

The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended April 30, 2023 qualified for the dividends-received deduction for corporate shareholders:

 

 

  
iShares ETF   Dividends-Received   
Deduction   		  

 

  

Morningstar Mid-Cap Value

     82.36%  

Morningstar Small-Cap

     66.57     

Morningstar U.S. Equity

     91.76     

Morningstar Value

     93.23     

 

  

 

 

I M P O R T A N T   T A X   I N F O R M A T I O N

   73

Statement Regarding Liquidity Risk Management Program (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares Morningstar Mid-Cap Value ETF, iShares Morningstar Small-Cap ETF, iShares Morningstar U.S. Equity ETF and iShares Morningstar Value ETF (the “Funds” or “ETFs”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 9, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing.

 

  d)

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period.

 

  e)

The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

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

April 30, 2023

 

       
    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 Mid-Cap Value

   $   1.506013     $ —     $ —     $   1.506013         100 %      — %      — %      100 % 

Morningstar Small-Cap

     0.786688       —       —       0.786688               100       —       —       100  

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

 

 

S U P P L E M E N T A L   I N F O R M A T I O N

   75

Trustee and Officer Information (unaudited)

 

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 380 funds as of April 30, 2023. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

 

Interested Trustees
       
Name (Year of
Birth)		    Position(s)    Principal Occupation(s)
During Past 5 Years		    Other Directorships Held by Trustee
Robert S.
Kapito(a) (1957)		    Trustee (since 2009).   

President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).

    Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Salim Ramji(b)
(1970)		    Trustee (since 2019).   

Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).

    Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).

 

(a) 

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b) 

Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

 

Independent Trustees
       
Name (Year of
Birth)		    Position(s)    Principal Occupation(s)
During Past 5 Years		    Other Directorships Held by Trustee
John E.
Kerrigan (1955)		    Trustee (since 2005); Independent Board Chair (since 2022).   

Chief Investment Officer, Santa Clara University (since 2002).

    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022).
Jane D.
Carlin (1956)		    Trustee (since 2015); Risk Committee Chair (since 2016).   

Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).

    Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L.
Fagnani (1954)		    Trustee (since 2017); Audit Committee Chair (since 2019).   

Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021).

    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

 

 

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Trustee and Officer Information (unaudited) (continued)

 

          Independent Trustees     
       
Name (Year of
Birth)		    Position(s)    Principal Occupation(s)
During Past 5 Years		    Other Directorships Held by Trustee
Cecilia H.
Herbert (1949)		    Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022).   

Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015- 2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022).

    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E.
Lawton (1959)		    Trustee (since 2017); 15(c) Committee Chair (since 2017).   

Senior Managing Director of New York Life Insurance Company (2010-2015).

    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021).

John E.

Martinez (1961)

    Trustee (since 2003); Securities Lending Committee Chair (since 2019).   

Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).

    Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V.
Rajan (1964)		    Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019).   

Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).

    Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

 

Officers
     
Name (Year of
Birth)		    Position(s)    Principal Occupation(s)
During Past 5 Years
Dominik
Rohé (1973)		    President (since 2023).   

Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019- 2023).

Trent
Walker (1974)		    Treasurer and Chief Financial Officer (since 2020).   

Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Charles
Park (1967)		    Chief Compliance Officer (since 2006).   

Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Marisa
Rolland (1980)		    Secretary (since 2022).   

Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017).

Rachel
Aguirre (1982)		    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019).

Jennifer
Hsui (1976)		    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James
Mauro (1970)		    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020).

 

Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.

 

 

T R U S T E E   A N D   O F F I C E R   I N F O R M A T I O N

   77

Trustee and Officer Information (unaudited) (continued)

 

Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.

 

 

78  

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General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

  •  

Go to icsdelivery.com.

  •  

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

G E N E R A L   I N F O R M A T I O N

   79

Glossary of Terms Used in this Report

 

Portfolio Abbreviation
NVS    Non-Voting Shares
REIT    Real Estate Investment Trust
S&P    Standard & Poor’s

 

 

80   2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

 

Want to know more?

iShares.com   |   1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by 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.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-410-0423

 

 

LOGO

   LOGO

 

LOGO

  APRIL 30, 2023

 

 

   

  

2023 Annual Report

 

 

iShares Trust

·  iShares Core U.S. REIT ETF | USRT | NYSE Arca

The Markets in Review

Dear Shareholder,

Investors faced an uncertain economic landscape during the 12-month reporting period ended April 30, 2023, amid mixed indicators and rapidly changing market conditions. The U.S. economy returned to modest growth beginning in the third quarter of 2022, although the pace of growth slowed thereafter. Inflation was elevated, reaching a 40-year high as labor costs grew rapidly and unemployment rates reached the lowest levels in decades. However, inflation moderated as the period continued, while continued strength in consumer spending backstopped the economy.

Equity returns varied substantially, as large-capitalization U.S. stocks gained for the period amid a rebound in big tech stocks, whereas small-capitalization U.S. stocks declined. International equities from developed markets advanced strongly, while emerging market stocks declined, pressured by higher interest rates and volatile commodities prices.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bonds posted a positive return as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. In addition, the Fed added liquidity to markets amid the failure of prominent regional banks.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth was modest in the last year, we believe that stickiness in services inflation and continued wage growth will keep inflation above central bank targets for some time. Although the Fed has decelerated the pace of interest rate hikes and indicated a pause could be its next step, we believe that the Fed still seems determined to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions. Turmoil in the banking sector late in the period highlighted the potential for the rapid increase in interest rates to disrupt markets with little warning.

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar could provide a supportive backdrop. We also see selective, long-term opportunities in credit, where we believe that valuations are appealing, and higher yields offer attractive income. However, we are neutral on credit in the near term, as we’re concerned about tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most significant opportunities in short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

   Total Returns as of April 30, 2023
     
     6-Month    12-Month 
     

U.S. large cap equities
(S&P 500® Index)

   8.63%       2.66%
     

U.S. small cap equities
(Russell 2000® Index)

   (3.45)      (3.65)
     

International equities
(MSCI Europe, Australasia, Far East Index)

  

24.19 

   8.42
     

Emerging market equities
(MSCI Emerging Markets Index)

  

16.36 

   (6.51)
     

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

  

2.09 

   2.83
     

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  

7.14 

   (1.68)
     

U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)

  

6.91 

   (0.43)
     

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

  

7.65 

   2.87
     

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  

6.21 

   1.21
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2   T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T

Table of Contents

 

 

      Page

The Markets in Review

   2

Annual Report:

   

Market Overview

    4

Fund Summary

    5

About Fund Performance

    7

Disclosure of Expenses

    7

Schedule of Investments

    8

Financial Statements:

   

Statement of Assets and Liabilities

    12

Statement of Operations

    13

Statements of Changes in Net Assets

    14

Financial Highlights

    15

Notes to Financial Statements

    16

Report of Independent Registered Public Accounting Firm

    23

Important Tax Information

    24

Statement Regarding Liquidity Risk Management Program

    25

Supplemental Information

    26

Trustee and Officer Information

    27

General Information

    30

Glossary of Terms Used in this Report

    31

 

 

  3

Market Overview

 

iShares Trust

Domestic Market Overview

U.S. stocks advanced for the 12 months ended April 30, 2023 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned 1.50%. Despite headwinds, including elevated inflation and rapid tightening of monetary policy, equities were supported by the economy’s continued resilience. While inflation was high throughout the reporting period, the pace of inflationary growth slackened, driving investor optimism. Markets endured in the face of disruption from the banking industry late in the reporting period. In March 2023, two banks suddenly failed, representing the second and third largest bank failures in U.S. history by asset value and leading to concern about the stability of a third bank. However, government agencies acted swiftly to organize a sale of the failed banks’ assets and inject liquidity, and equity prices recovered.

Inflation was a significant driver of the economic outlook. As the reporting period began, the consumer price index, a widely followed measure of inflation, stood at a multi-decade high. Strong consumer spending and a tight labor market, along with continued supply chain disruptions in Asia, combined to drive prices higher. The rate of inflation began to decline beginning in July 2022, continuing to decelerate for 10 consecutive months. Nonetheless, inflation remained elevated by historic standards, and higher prices negatively impacted both consumers and businesses.

The U.S. economy recovered from a contraction in the first half of 2022 to post modest growth in the second half of 2022 and the first quarter of 2023. Consumers continued to power the economy with growing spending, despite higher prices for many consumer goods and services. The strong labor market supported spending, as unemployment remained very low, at one point dropping to the lowest posted level since 1969. Furthermore, the labor force participation rate — which measures the total proportion of working age persons employed or looking for work — rose, indicating that more people were being drawn into the labor force. Amid tightening labor supply, wages rose significantly, with the largest gains at the lower end of the wage spectrum.

To contain inflation, the U.S. Federal Reserve Bank (“Fed”) tightened monetary policy rapidly, raising short-term interest rates eight times over the course of the reporting period. The pace of tightening accelerated as the Fed twice stepped up the increment of increase before reducing it again as inflation began to subside. The Fed also started to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic. While the Fed indicated that more tightening could be needed to achieve its long-term inflation goal, it sounded a more cautious note about the potential for further interest rate increases near the end of the reporting period.

Despite economic headwinds, corporate profits remained robust, as many companies were able to sufficiently raise prices to preserve profit margins even in the face of rising labor and input costs. Nonetheless, profits declined overall in the fourth quarter of 2022, and the yield curve (a graphical representation of U.S. Treasury rates at different maturities) inverted, a sign that markets were concerned about the impact of higher borrowing costs on the economy. Furthermore, dwindling personal savings and rising household debt raised questions about the sustainability of consumer spending as an engine of economic growth.

 

 

4  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of April 30, 2023    iShares® Core U.S. REIT ETF

 

Investment Objective

The iShares Core U.S. REIT ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate equities, as represented by the FTSE Nareit Equity REITs Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns     Cumulative Total Returns  
                                     
     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

     (14.84 )%      5.84 %      4.98 %      (14.84 )%      32.80 %      62.60 % 

Fund Market

     (14.93 )      5.82       4.97       (14.93 )      32.68       62.44  

Index

     (14.80 )      5.90       5.16       (14.80 )      33.18       65.33  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through November 2, 2016 reflects the performance of the FTSE NAREIT Real Estate 50 Index. Index performance beginning on November 3, 2016 reflects the performance of the FTSE Nareit Equity REITS Index.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual

           Hypothetical 5% Return           
                                                          

Beginning

Account Value

(11/01/22)

       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		            

 Beginning
Account Value
(11/01/22)		  
 
 		       

 Ending
Account Value
(04/30/23)		  
 
 		       

 Expenses
Paid During
the Period		  
 
(a) 		       

 Annualized
Expense
Ratio		  
 
 

$       1,000.00

        $       1,038.40          $         0.40               $       1,000.00          $       1,024.40          $         0.40          0.08 % 

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

F U N D   S U M M A R Y

   5

Fund Summary as of April 30, 2023 (continued)    iShares® Core U.S. REIT ETF

 

Portfolio Management Commentary

U.S. real estate investment trusts (“REITs”) declined sharply during the reporting period amid a slowing economy, higher inflation, and rising interest rates. REITs typically take on substantial debt in order to finance the purchase of the properties they manage, and the sharp rise in interest rates made financing more expensive for REITs. Furthermore, higher interest rates meant increased bond yields, making dividend yields from REITs comparatively less attractive to income-oriented investors, although many REITs raised dividends during the reporting period.

Diversified REITs, which own and operate a mix of property types, detracted the most from the Index’s performance. REITs with residential properties such as apartment buildings declined, particularly those that operate in large cities where the real estate markets failed to fully recover from the impact of the pandemic. New apartment buildings constructed during the reporting period added to supply, putting downward pressure on rents. In addition, shifting demographics and concerns about the economic outlook led to fewer households being formed, limiting demand for apartments. Property values for apartment complexes also declined from peak levels.

Diversified REITs with a substantial office property component further detracted from the Index’s performance. Managers of office properties contended with weak office leasing rates, as some businesses continued to allow workers to work from home and many technology companies laid off employees. REITs that build and manage offices and laboratories for the biotechnology industry scaled back development due to high material and labor costs coupled with lingering supply shortages.

Diversified REITs focused on industrial properties also weighed on the Index’s return. A slowdown in e-commerce sales growth raised concerns among investors regarding the outlook for warehouses and logistics facilities used for order fulfilment. Consequently, logistics companies scaled back plans to build new facilities.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry  

Percent of   

Total Investments(a)

Specialized REITs

   27.1%

Residential REITs

   18.3   

Industrial REITs

   16.6   

Retail REITs

   16.0   

Health Care REITs

   10.2   

Office REITs

   5.5   

Hotel & Resort REITs

   3.4   

Diversified REITs

   2.9   

TEN LARGEST HOLDINGS

 

     
Security         

Percent of   

Total Investments(a)

Prologis, Inc.

     11.6%

Equinix, Inc.

     6.8   

Public Storage

     4.7   

Realty Income Corp.

     4.0   

Welltower, Inc.

     3.8   

Simon Property Group, Inc.

     3.7   

VICI Properties, Inc.

     3.4   

Digital Realty Trust, Inc.

     2.9   

AvalonBay Communities, Inc.

     2.5   

Equity Residential

           2.4   
 
(a)

Excludes money market funds.

 

 

6  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of the Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense example shown (which is based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other funds.

The expense example provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical example is useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

A B O U T   F U N D   P E R F O R M A N C E   /   D I S C L O S U R E   O F   E X P E N S E S

   7

Schedule of Investments

April 30, 2023

   

iShares® Core U.S. REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

    
Diversified REITs — 2.8%            

Alexander & Baldwin, Inc.

     136,778     $ 2,630,241  

Alpine Income Property Trust, Inc.

     24,729       397,642  

American Assets Trust, Inc.

     92,705       1,687,231  

Armada Hoffler Properties, Inc.

     126,232       1,479,439  

Broadstone Net Lease, Inc.

     327,096       5,289,142  

CTO Realty Growth, Inc.

     41,611       700,729  

Empire State Realty Trust, Inc., Class A(a)

     249,181       1,522,496  

Essential Properties Realty Trust, Inc.

     266,205       6,588,574  

Gladstone Commercial Corp.

     74,873       893,984  

Global Net Lease, Inc.

     197,989       2,229,356  

One Liberty Properties, Inc.

     31,062       683,985  

Star Holdings(b)

     24,183       390,314  

WP Carey, Inc.

     397,288           29,478,770  
   

 

 

  
      53,971,903  
Health Care REITs — 10.2%            

CareTrust REIT, Inc.

     187,818       3,660,573  

Community Healthcare Trust, Inc.

     44,670       1,598,739  

Diversified Healthcare Trust

     445,972       407,351  

Global Medical REIT, Inc.

     115,607       1,072,833  

Healthcare Realty Trust, Inc.

     721,476       14,270,795  

Healthpeak Properties, Inc.

     1,039,967       22,848,075  

LTC Properties, Inc.

     75,437       2,523,368  

Medical Properties Trust, Inc.

     1,130,380       9,913,433  

National Health Investors, Inc.

     79,137       3,938,648  

Omega Healthcare Investors, Inc.

     447,187       11,966,724  

Physicians Realty Trust

     430,446       6,207,031  

Sabra Health Care REIT, Inc.

     436,542       4,976,579  

Universal Health Realty Income Trust

     24,189       1,052,222  

Ventas, Inc.

     759,849       36,510,744  

Welltower, Inc.(a)

     900,463       71,334,679  
   

 

 

  
      192,281,794  
Hotel & Resort REITs — 3.4%            

Apple Hospitality REIT, Inc.

     406,328       6,050,224  

Ashford Hospitality Trust, Inc.(a)(b)

     66,147       224,900  

Braemar Hotels & Resorts, Inc.

     121,419       461,392  

Chatham Lodging Trust

     89,476       916,234  

DiamondRock Hospitality Co.

     398,375       3,230,821  

Hersha Hospitality Trust, Class A

     60,675       382,252  

Host Hotels & Resorts, Inc.

     1,347,175       21,783,820  

Park Hotels & Resorts, Inc.

     423,990       5,109,079  

Pebblebrook Hotel Trust(a)

     244,507       3,479,335  

RLJ Lodging Trust

     304,148       3,071,895  

Ryman Hospitality Properties, Inc.

     101,824       9,129,540  

Service Properties Trust

     310,290       2,721,243  

Summit Hotel Properties, Inc.

     199,400       1,284,136  

Sunstone Hotel Investors, Inc.

     400,571       3,817,442  

Xenia Hotels & Resorts, Inc.

     215,319       2,725,939  
   

 

 

  
      64,388,252  
Industrial REITs — 16.6%            

Americold Realty Trust, Inc.

     511,457       15,134,013  

EastGroup Properties, Inc.

     78,271       13,036,818  

First Industrial Realty Trust, Inc.

     250,669       13,152,602  

Indus Realty Trust, Inc.

     10,074       670,626  

Industrial Logistics Properties Trust

     126,197       259,966  

Innovative Industrial Properties, Inc.

     52,639       3,608,403  

LXP Industrial Trust

     514,589       4,837,137  

Plymouth Industrial REIT, Inc.

     71,118       1,439,428  

Prologis, Inc.

     1,753,697       219,650,549  

Rexford Industrial Realty, Inc.

     372,057       20,749,619  
Security   Shares     Value  
Industrial REITs (continued)            

STAG Industrial, Inc.

     341,281     $ 11,559,188  

Terreno Realty Corp.

     152,630       9,400,482  
   

 

 

  
        313,498,831  
Office REITs — 5.5%            

Alexandria Real Estate Equities, Inc.

     326,971       40,603,259  

Boston Properties, Inc.

     298,245       15,914,353  

Brandywine Realty Trust

     319,395       1,255,222  

City Office REIT, Inc.

     72,149       419,907  

Corporate Office Properties Trust

     213,082       4,877,447  

Cousins Properties, Inc.

     287,870       6,278,445  

Douglas Emmett, Inc.

     322,165       4,149,485  

Easterly Government Properties, Inc.(a)

     172,499       2,427,061  

Franklin Street Properties Corp.

     190,213       220,647  

Highwoods Properties, Inc.

     197,787       4,533,278  

Hudson Pacific Properties, Inc.

     262,708       1,460,657  

JBG SMITH Properties

     203,010       2,896,953  

Kilroy Realty Corp.

     220,760       6,455,022  

Office Properties Income Trust

     90,058       587,178  

Orion Office REIT, Inc.

     109,202       670,500  

Paramount Group, Inc.

     355,296       1,538,432  

Piedmont Office Realty Trust, Inc., Class A

     233,189       1,518,060  

Postal Realty Trust, Inc., Class A

     34,210       525,808  

SL Green Realty Corp.

     121,208       2,868,993  

Vornado Realty Trust

     335,642       5,037,987  
   

 

 

  
      104,238,694  
Residential REITs — 18.2%            

American Homes 4 Rent, Class A

     585,720       19,481,047  

Apartment Income REIT Corp.

     285,894       10,572,360  

Apartment Investment & Management Co., Class A

     283,638       2,220,886  

AvalonBay Communities, Inc.

     265,852       47,951,725  

BRT Apartments Corp.

     22,379       387,828  

Camden Property Trust

     197,279       21,710,554  

Centerspace

     28,523       1,608,127  

Elme Communities

     164,858       2,840,503  

Equity LifeStyle Properties, Inc.

     337,968       23,285,995  

Equity Residential

     704,848       44,581,636  

Essex Property Trust, Inc.

     122,308       26,874,737  

Independence Realty Trust, Inc.

     424,105       7,061,348  

Invitation Homes, Inc.

     1,161,460       38,757,920  

Mid-America Apartment Communities, Inc.

     218,503       33,605,762  

NexPoint Residential Trust, Inc.

     42,924       1,842,727  

Sun Communities, Inc.

     231,530       32,166,463  

UDR, Inc.

     623,869       25,784,506  

UMH Properties, Inc.

     99,593       1,513,814  

Veris Residential, Inc.(b)

     163,481       2,672,914  
   

 

 

  
      344,920,852  
Retail REITs — 16.0%            

Acadia Realty Trust

     172,387       2,328,948  

Agree Realty Corp.

     165,576       11,257,512  

Alexander’s, Inc.

     4,080       759,166  

Brixmor Property Group, Inc.

     567,560       12,106,055  

CBL & Associates Properties, Inc.

     50,787       1,174,703  

Federal Realty Investment Trust

     152,733       15,103,766  

Getty Realty Corp.

     78,064       2,601,873  

InvenTrust Properties Corp.

     128,691       2,901,982  

Kimco Realty Corp.

     1,149,399       22,056,967  

Kite Realty Group Trust

     412,302       8,542,897  

Macerich Co.

     406,732       4,063,253  

National Retail Properties, Inc.

     344,373       14,980,226  

Necessity Retail REIT, Inc., Class A

     253,833       1,398,620  

NETSTREIT Corp.

     104,731       1,908,199  
 

 

 

8  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

April 30, 2023

   

iShares® Core U.S. REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

  
Retail REITs (continued)            

Phillips Edison & Co., Inc.

     221,824     $ 6,996,329  

Realty Income Corp.

     1,194,629       75,070,486  

Regency Centers Corp.

     326,087       20,031,524  

Retail Opportunity Investments Corp.

     227,722       2,967,218  

RPT Realty

     159,157       1,480,160  

Saul Centers, Inc.

     22,442       808,585  

Simon Property Group, Inc.

     620,924       70,363,108  

SITE Centers Corp.

     363,655       4,487,503  

Spirit Realty Capital, Inc.

     264,825       10,185,170  

Tanger Factory Outlet Centers, Inc.

     192,284       3,770,689  

Urban Edge Properties

     217,066       3,184,358  

Urstadt Biddle Properties, Inc., Class A

     53,908       928,296  

Whitestone REIT

     89,934       804,909  
   

 

 

  
        302,262,502  
Specialized REITs — 27.0%            

CubeSmart

     425,346       19,348,989  

Digital Realty Trust, Inc.

     546,079       54,143,733  

EPR Properties

     140,759       5,906,248  

Equinix, Inc.

     175,921       127,380,878  

Extra Space Storage, Inc.

     252,181       38,341,599  

Farmland Partners, Inc.

     93,641       977,612  

Four Corners Property Trust, Inc.

     158,474       4,042,672  

Gaming & Leisure Properties, Inc.

     464,626       24,160,552  

Gladstone Land Corp.(a)

     61,057       983,628  

Iron Mountain, Inc.

     549,347       30,345,928  

Lamar Advertising Co., Class A

     164,533       17,387,847  

Life Storage, Inc.

     160,078       21,511,282  

National Storage Affiliates Trust

     161,255       6,216,380  
Security   Shares     Value  

 

  
Specialized REITs (continued)            

Outfront Media, Inc.

     276,505     $ 4,606,573  

Public Storage

     297,637       87,752,317  

Safehold, Inc.

     76,483       2,120,109  

VICI Properties, Inc.

     1,908,318       64,768,313  
   

 

 

  
      509,994,660  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $2,183,992,204)

 

     1,885,557,488  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.02%(c)(d)(e)

     10,976,050       10,979,342  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.75%(c)(d)

     3,910,036       3,910,036  
   

 

 

  

Total Short-Term Securities — 0.8%
(Cost: $14,884,885)

 

     14,889,378  
   

 

 

  

Total Investments — 100.5%
(Cost: $2,198,877,089)

       1,900,446,866  

Liabilities in Excess of Other Assets — (0.5)%

 

     (9,109,461 ) 
   

 

 

  

Net Assets — 100.0%

     $   1,891,337,405  
   

 

 

  

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer  

Value at

04/30/22

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net

Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

04/30/23

    

Shares

Held at

04/30/23

     Income    

Capital

Gain

Distributions

from Underlying

Funds

  

BlackRock Cash

                  

Funds: Institutional, SL Agency Shares

   $  3,621,730     $  7,326,066 (a)    $ —     $ 27,169     $ 4,377     $ 10,979,342       10,976,050     $ 66,627 (b)    $ —  

BlackRock Cash

                  

Funds: Treasury, SL Agency Shares

     7,350,000       —       (3,439,964 )(a)      —       —       3,910,036       3,910,036       144,871       2  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $ 27,169     $ 4,377     $  14,889,378       $  211,498     $ 2  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   9

Schedule of Investments   (continued)

April 30, 2023

   

iShares® Core U.S. REIT ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

  

Long Contracts

        

Dow Jones U.S. Real Estate Index

     172          06/16/23        $ 5,722        $ 200,163  
       

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

 

               
    

Commodity

Contracts

     

Credit

Contracts

     

Equity

Contracts

     

Foreign

Currency

Exchange

Contracts

     

Interest

Rate

Contracts

     

Other

Contracts

      Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $ —      $ —      $  200,163      $ —      $ —      $ —      $  200,163  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended April 30, 2023, the effect of derivative financial instruments in the Statement of Operations was as follows:

 

               
    

Commodity

Contracts

     

Credit

Contracts

     

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

     

Interest

Rate

Contracts

     

Other

Contracts

      Total  

Net Realized Gain (Loss) from

                   

Futures contracts

   $ —      $ —      $   (1,974,599 )    $ —      $ —      $ —      $   (1,974,599 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on

                   

Futures contracts

   $ —      $ —      $ 237,060     $ —      $ —      $ —      $ 237,060  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 6,473,025  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

10  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

April 30, 2023

   

iShares® Core U.S. REIT ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                                                                   

 

  
    Level 1      Level 2      Level 3      Total  

 

  

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

   $ 1,885,557,488      $ —      $ —      $ 1,885,557,488  

Short-Term Securities

           

Money Market Funds

     14,889,378        —        —        14,889,378  
 

 

 

     

 

 

     

 

 

     

 

 

  
  $ 1,900,446,866      $ —      $ —      $ 1,900,446,866  
 

 

 

     

 

 

     

 

 

     

 

 

  

Derivative Financial Instruments(a)

           

Assets

           

Equity Contracts

   $ 200,163      $ —      $ —      $ 200,163  
 

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   11

Statement of Assets and Liabilities

April 30, 2023

 

    

iShares

Core U.S. REIT ETF

  

ASSETS

  

Investments, at value — unaffiliated(a)(b)

   $ 1,885,557,488  

Investments, at value — affiliated(c)

     14,889,378  

Cash pledged:

  

Futures contracts

     390,000  

Receivables:

  

Investments sold

     179,016  

Securities lending income — affiliated

     2,348  

Dividends — unaffiliated

     1,498,501  

Dividends — affiliated

     17,867  

Variation margin on futures contracts

     54,712  
 

 

 

  

Total assets

     1,902,589,310  
 

 

 

  

LIABILITIES

  

Bank overdraft

     108  

Collateral on securities loaned

     10,950,323  

Payables:

  

Investments purchased

     179,016  

Investment advisory fees

     122,458  
 

 

 

  

Total liabilities

     11,251,905  
 

 

 

  

NET ASSETS

   $ 1,891,337,405  
 

 

 

  

NET ASSETS CONSIST OF:

  

Paid-in capital

   $     2,223,559,677  

Accumulated loss

     (332,222,272 ) 
 

 

 

  

NET ASSETS

   $ 1,891,337,405  
 

 

 

  

NET ASSET VALUE

  

Shares outstanding

     37,200,000  
 

 

 

  

Net asset value

   $ 50.84  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

     None  
 

 

 

  

(a) Investments, at cost — unaffiliated

   $ 2,183,992,204  

(b) Securities loaned, at value

   $ 10,919,632  

(c) Investments, at cost — affiliated

   $ 14,884,885  

See notes to financial statements.

 

 

12  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statement of Operations

Year Ended April 30, 2023

 

    

iShares

 Core U.S. REIT ETF

  

INVESTMENT INCOME

  

Dividends — unaffiliated

    $ 65,683,722  

Dividends — affiliated

     144,871  

Securities lending income — affiliated — net

     66,627  
 

 

 

  

Total investment income

     65,895,220  
 

 

 

  

EXPENSES

  

Investment advisory

     1,587,647  
 

 

 

  

Total expenses

     1,587,647  
 

 

 

  

Net investment income

     64,307,573  
 

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

  

Net realized gain (loss) from:

  

Investments — unaffiliated

     (10,633,387 ) 

Investments — affiliated

     27,169  

Capital gain distributions from underlying funds — affiliated

     2  

Futures contracts

     (1,974,599 ) 

In-kind redemptions — unaffiliated(a)

     92,903,248  
 

 

 

  
    80,322,433  
 

 

 

  

Net change in unrealized appreciation (depreciation) on:

  

Investments — unaffiliated

     (491,048,674 ) 

Investments — affiliated

     4,377  

Futures contracts

     237,060  
 

 

 

  
    (490,807,237 ) 
 

 

 

  

Net realized and unrealized loss

     (410,484,804 ) 
 

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $       (346,177,231 ) 
 

 

 

  

 

(a)

See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   13

Statements of Changes in Net Assets

 

    iShares Core U.S. REIT ETF  
              
     Year Ended
04/30/23		      Year Ended
04/30/22		  

INCREASE (DECREASE) IN NET ASSETS

     

OPERATIONS

     

Net investment income

   $ 64,307,573      $ 47,545,870  

Net realized gain

     80,322,433        188,023,089  

Net change in unrealized appreciation (depreciation)

     (490,807,237 )       15,691,617  
 

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     (346,177,231 )       251,260,576  
 

 

 

     

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

     

Decrease in net assets resulting from distributions to shareholders

     (65,460,022 )       (57,050,953 )  
 

 

 

     

 

 

  

CAPITAL SHARE TRANSACTIONS

     

Net increase (decrease) in net assets derived from capital share transactions

     (15,575,503 )       137,648,377  
 

 

 

     

 

 

  

NET ASSETS

     

Total increase (decrease) in net assets

     (427,212,756 )       331,858,000  

Beginning of year

     2,318,550,161        1,986,692,161  
 

 

 

     

 

 

  

End of year

   $  1,891,337,405      $  2,318,550,161  
 

 

 

     

 

 

  

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

14  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Core U.S. REIT ETF  
     Year Ended
04/30/23		     Year Ended
04/30/22		     Year Ended
04/30/21		     Year Ended
04/30/20		     Year Ended
04/30/19		  

Net asset value, beginning of year

   $ 61.83     $ 56.60     $ 42.45     $ 51.60     $ 45.73  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     1.71       1.24       1.17       1.62       1.79  

Net realized and unrealized gain (loss)(b)

     (10.95 )      5.45       14.39       (8.95 )      6.59  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (9.24 )      6.69       15.56       (7.33 )      8.38  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(c)

          

From net investment income

     (1.75 )      (1.43 )      (1.41 )      (1.80 )      (2.44 ) 

From net realized gain

     —       (0.03 )      —       (0.02 )      (0.07 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

     (1.75 )      (1.46 )      (1.41 )      (1.82 )      (2.51 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 50.84     $ 61.83     $ 56.60     $ 42.45     $ 51.60  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

          

Based on net asset value

     (14.84 )%      11.82 %      37.43 %      (14.60 )%      18.82 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

          

Total expenses

     0.08 %      0.08 %      0.08 %      0.08 %      0.08 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     3.24 %      2.00 %      2.48 %      3.12 %      3.64 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $   1,891,337     $   2,318,550     $   1,986,692     $   1,339,443     $   1,290,051  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate(f)

     8 %      9 %      5 %      8 %      11 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   15

Notes to Financial Statements

 

1.

ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

These financial statements relate only to the following fund (the “Fund”):

 

   
iShares ETF   Diversification
Classification

Core U.S. REIT

   Diversified

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Collateralization: If required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains and losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

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

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of the Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

 

  •  

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

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

  •  

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

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or

 

 

16  

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Notes to Financial Statements   (continued)

 

purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

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

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access;

 

  •  

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and

 

  •  

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statement of Assets and Liabilities.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   17

Notes to Financial Statements   (continued)

 

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

         
Counterparty    
 Securities
Loaned at Value		  
 		     
 Cash
Collateral Received		  
(a) 		    

 Non-Cash
Collateral Received,
at Fair Value		  
 
(a) 		    
 Net
Amount		  
(b) 

Barclays Capital, Inc.

   $ 6,519,806      $ (6,519,806 )    $ —     $ —  

BNP Paribas SA

     180,101        (180,101 )      —       —  

Goldman Sachs & Co. LLC

     3,746,420        (3,717,614 )      —       28,806  

J.P. Morgan Securities LLC

     356,619        (356,619 )      —       —  

National Financial Services LLC

     116,686        (116,686 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 10,919,632      $ (10,890,826 )    $ —     $ 28,806  
 

 

 

     

 

 

    

 

 

    

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statement of Assets and Liabilities.

 
  (b) 

The market value of the loaned securities is determined as of April 30, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. 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 market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Fund, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

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

 

   
iShares ETF   Investment Advisory Fees   

Core U.S. REIT

   0.08%

Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.

ETF Servicing Fees: The Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Fund does not pay BRIL for ETF Services.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Fund is responsible for fees in connection with the investment of cash collateral received for securities

 

 

18  

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Notes to Financial Statements   (continued)

 

on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded fund (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by the Fund is shown as securities lending income - affiliated - net in its Statement of Operations. For the year ended April 30, 2023, the Fund paid BTC $26,269 for securities lending agent services.

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2023, transactions executed by the Fund pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

           
iShares ETF   Purchases           Sales           Net Realized
Gain (Loss)		  

Core U.S. REIT

   $   13,035,249          $   33,464,597          $   (10,358,265 ) 

The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statement of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the year ended April 30, 2023, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

     
iShares ETF   Purchases     Sales

Core U.S. REIT

   $   178,770,491         $  161,509,360

For the year ended April 30, 2023, in-kind transactions were as follows:

 

     
iShares ETF   In-kind
Purchases		    

In-kind

Sales

Core U.S. REIT

   $   610,465,644         $  644,502,651

 

8.

INCOME TAX INFORMATION

The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Fund as of April 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   19

Notes to Financial Statements   (continued)

 

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of April 30, 2023, permanent differences attributable to distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions were reclassified to the following accounts:

 

 

  
iShares ETF   Paid-in capital     Accumulated earnings (loss)  

 

  

Core U.S. REIT

   $ 87,389,161     $ (87,389,161 ) 

 

  

The tax character of distributions paid was as follows:

 

 

  
iShares ETF   Year Ended
April 30, 2023		      Year Ended
April 30, 2022		  

 

  

Core U.S. REIT

     

Ordinary income

   $ 65,460,022      $ 55,839,536  

Long term capital gains

     —        1,211,417  
 

 

 

     

 

 

  
  $ 65,460,022      $ 57,050,953  

 

  

As of April 30, 2023, the tax components of accumulated net earnings (losses) were as follows:

 

 

  
iShares ETF   Non-expiring
Capital Loss
Carryforwards(a)		      Net Unrealized
Gains (Losses)(b)		      Total  

 

  

Core U.S. REIT

    $ (10,634,310 )      $ (321,587,962 )     $  (332,222,272 ) 

 

  

 

(a) 

Amounts available to offset future realized capital gains.

(b) 

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the characterization of corporate actions, the timing and recognition of realized gains/losses for tax purposes and the realization for tax purposes of unrealized gains (losses) on certain futures contracts.

 

As of April 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

 

  
iShares ETF   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		      Net Unrealized
Appreciation
(Depreciation)		  

 

  

Core U.S. REIT

   $  2,222,034,828      $ 65,041,750      $ (386,629,712 )     $   (321,587,962 ) 

 

  

 

9.

PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve the Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

 

 

20  

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Notes to Financial Statements   (continued)

 

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Fund manages counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.

The Fund invests a significant portion of its assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

The Fund invests a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Fund invests.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

10.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of the Fund are not redeemable.

Transactions in capital shares were as follows:

 

     
   

Year Ended

04/30/23

    

Year Ended

04/30/22

  
 

 

 

    

 

 

  
 Share Class   Shares     Amount     Shares     Amount  

Shares sold

     11,700,000      $     614,069,077         11,850,000      $     729,451,592  

Shares redeemed

     (12,000,000 )      (629,644,580 )      (9,450,000 )        (591,803,215 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (300,000 )      $ (15,575,503 )        2,400,000     $ 137,648,377  
 

 

 

    

 

 

    

 

 

    

 

 

  

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

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statement of Assets and Liabilities.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   21

Notes to Financial Statements   (continued)

 

11.

SUBSEQUENT EVENTS

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

 

 

22  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of iShares Trust and

Shareholders of iShares Core U.S. REIT ETF

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of iShares Core U.S. REIT ETF (one of the funds constituting iShares Trust, referred to hereafter as the “Fund”) as of April 30, 2023, the related statement of operations for the year ended April 30, 2023, the statements of changes in net assets for each of the two years in the period ended April 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended April 30, 2023 and the financial highlights for each of the five years in the period ended April 30, 2023 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

June 21, 2023

We have served as the auditor of one or more BlackRock investment companies since 2000.

 

 

R E P O R T   O F   I N D E P E N D E N T   R E G I S T E R E D   P U B L I C   A C C O U N T I N G   F I R M

   23

Important Tax Information (unaudited)

 

The following amount, or maximum amount allowable by law, is hereby designated is qualified dividend income for individuals for the fiscal year ended April 30, 2023:

 

 

  
iShares ETF  

Qualified Dividend

Income

  

 

  

iShares Core U.S. REIT ETF

   $ 394,965  

 

  

The following amount, or maximum amount allowable by law, is hereby designated as qualified business income for individuals for the fiscal year ended April 30, 2023:

 

 

  
iShares ETF  

Qualified Business

Income

  

 

  

iShares Core U.S. REIT ETF

   $ 36,611,572  

 

  

 

 

24  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statement Regarding Liquidity Risk Management Program  (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares Core U.S. REIT ETF (the “Fund” or “ETF”), a series of the Trust, which is reasonably designed to assess and manage the Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 9, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for the Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of the Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing the Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish the Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to the Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing the Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing.

 

  d)

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period.

 

  e)

The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

S T A T E M E N T   R E G A R D I N G   L I Q U I D I T Y   R I S K   M A N A G E M E N T   P R O G R A M

   25

Supplemental Information  (unaudited)

 

Section 19(a) Notices

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

April 30, 2023

 

     
   

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		  

Core U.S. REIT

   $   1.753845      $ —      $ —      $   1.753845        100 %      — %      — %      100 % 

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

 

 

26  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Trustee and Officer Information (unaudited)

 

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). The Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 380 funds as of April 30, 2023. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

 

Interested Trustees
       

Name (Year of

Birth)

    Position(s)   

Principal Occupation(s)

During Past 5 Years

    Other Directorships Held by Trustee

Robert S.

Kapito(a) (1957)

    Trustee (since 2009).   

President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).

    Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Salim Ramji(b)

(1970)

    Trustee (since 2019).   

Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).

    Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).

(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b) Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

Independent Trustees
       

Name (Year of

Birth)

    Position(s)   

Principal Occupation(s)

During Past 5 Years

    Other Directorships Held by Trustee

John E.

Kerrigan (1955)

   

Trustee (since 2005);

Independent Board Chair (since 2022).

   

Chief Investment Officer, Santa Clara University (since 2002).

    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022).

Jane D.

Carlin (1956)

   

Trustee (since 2015);

Risk Committee Chair (since 2016).

   

Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).

    Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).

Richard L.

Fagnani (1954)

   

Trustee (since 2017);

Audit Committee Chair (since 2019).

   

Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021).

    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

 

 

T R U S T E E   A N D   O F F I C E R   I N F O R M A T I O N

   27

Trustee and Officer Information (unaudited)  (continued)

 

Independent Trustees
       

Name (Year of

Birth)

    Position(s)   

Principal Occupation(s)

During Past 5 Years

    Other Directorships Held by Trustee

Cecilia H.

Herbert (1949)

    Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022).   

Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015- 2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022).

    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

Drew E.

Lawton (1959)

    Trustee (since 2017); 15(c) Committee Chair (since 2017).   

Senior Managing Director of New York Life Insurance Company (2010-2015).

    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021).

John E.

Martinez (1961)

    Trustee (since 2003); Securities Lending Committee Chair (since 2019).   

Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).

    Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

Madhav V.

Rajan (1964)

    Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019).   

Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).

    Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

 

 

28  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Trustee and Officer Information (unaudited)  (continued)

 

Officers
     

Name (Year of

Birth)

    Position(s)   

Principal Occupation(s)

During Past 5 Years

Dominik Rohé (1973)    President (since 2023).   

Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019- 2023).

Trent Walker (1974)    Treasurer and Chief Financial Officer (since 2020).   

Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Charles Park (1967)    Chief Compliance Officer (since 2006).   

Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Marisa Rolland (1980)    Secretary (since 2022).   

Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017).

Rachel Aguirre (1982)    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019).

Jennifer Hsui (1976)    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James Mauro (1970)    Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020).

 

Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.

Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.

 

 

T R U S T E E   A N D   O F F I C E R   I N F O R M A T I O N

   29

General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

  •  

Go to icsdelivery.com.

  •  

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, the Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

30  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Glossary of Terms Used in this Report

 

Portfolio Abbreviation
REIT              Real Estate Investment Trust

 

 

G L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T

   31

 

 

 

 

 

Want to know more?

iShares.com  |  1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE International Limited, 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.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-412-0423

 

 

 

LOGO

   LOGO

(b) Not Applicable

 

Item 2.

Code of Ethics.

The registrant has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the registrant has not amended the code of ethics and there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, by calling 1-800-474-2737.

 

Item 3.

Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that the registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the registrant’s audit committee are Richard L. Fagnani and Madhav V. Rajan, all of whom are independent, as that term is defined under Item 3(a)(2).

Item 4.

Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for the nine series of the registrant for which the fiscal year-end is April 30, 2023 (the “Funds”), and whose annual financial statements are reported in Item 1.

(a) Audit Fees – The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $114,300 for the fiscal year ended April 30, 2022 and $119,700 for the fiscal year ended April 30, 2023.

(b) Audit-Related Fees – There were no fees billed for the fiscal years ended April 30, 2022 and April 30, 2023 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (a) of this Item.

(c) Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning for the Funds were $87,300 for the fiscal year ended April 30, 2022 and $87,300 for the fiscal year ended April 30, 2023. These services related to the review of the Funds’ tax returns and excise tax calculations.

(d) All Other Fees – There were no other fees billed in each of the fiscal years ended April 30, 2022 and April 30, 2023 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.

(e) (1) The registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the registrant or to any entity controlling, controlled by or under common control with the registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant.

(2) There were no services described in (b) through (d) above that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees billed by the registrant’s principal accountant for services rendered to the Funds, and rendered to the registrant’s investment adviser, and any Adviser Affiliate that provides ongoing services to the registrant for the last two fiscal years were $87,300 for the fiscal year ended April 30, 2022 and $87,300 for the fiscal year ended April 30, 2023.

(h) The registrant’s audit committee has considered whether the provision of non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliate that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, is compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services, if any, does not compromise the principal accountant’s independence.

(i) Not Applicable

(j) Not Applicable

Item 5.

Audit Committee of Listed Registrants

(a) The registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act of 1934 and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The registrant’s audit committee members are Richard L. Fagnani, Cecilia H. Herbert and Madhav V. Rajan.

(b) Not applicable.

 

Item 6.

Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the registrant.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the registrant.

 

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the registrant.

 

Item 10.

Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

 

Item 11.

Controls and Procedures.

(a) The President (the registrant’s Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 13.

Exhibits.

(a) (1) Code of Ethics is not filed as an exhibit; please refer to Item 2.

(a) (2) Section 302 Certifications are attached.

(a) (3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable.

(a) (4) Change in Registrant’s independent public accountant – Not Applicable.

(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/ Dominik Rohe                            

       Dominik Rohe, President (Principal Executive Officer)

Date: June 21, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

   By:     

/s/ Dominik Rohe                            

       Dominik Rohe, President (Principal Executive Officer)

Date: June 21, 2023

 

   By:     

/s/ Trent Walker                            

       Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date: June 21, 2023